Texas salesperson licensing guide for beginners

By Ciprian Morariu Published: October 29, 2024

Texas salesperson licensing guide for beginners

Is becoming a real estate agent in Texas a professional goal of yours? Do you wish to be a part of a prestigious and rewarding career where opportunities for growth are abundant?

If yes, then working in Texas real estate can be the ideal launchpad for your career plans. 

Texas is home to thousands of licensed real estate agents and brokers who are successfully working in the Lone Star state and making the most of its fertile real estate landscape. 

Real estate agents in TX can easily make a six-figure income within a few years of working in the industry. 

According to the Bureau of Labor Statistics in the United States, the average annual salary of a Texas agent is around $94K and you can expect to earn anywhere between 5 to 6 percent in commissions of the final selling price. 

Working in real estate can open a wealth of opportunities for professional and personal development. Plus, you can enjoy the flexibility and high degree of freedom that comes with the job. 

If you are an ambitious individual ready to embark on an exciting and satisfying career journey, now is the time to consider starting a career as a salesperson in Texas real estate

Dallas, Austin, Fort Worth, and Houston are some of the most popular real estate markets in the country enjoying interest from homebuyers and real estate investors. 

Texas’ real estate landscape offers numerous opportunities for building a thriving, well-paying career thanks to the state’s growing population and a strong job market. 

The best part is that you do not even need any specialized degree or advanced education to work with clients. 

All you need to get started is a Texas real estate license and you will be on your way to closing deals, negotiating contracts, and helping clients achieve their goals. 

This article will outline all the important steps in your licensing journey - right from determining your eligibility to completing the required education and training. 

Once you are done reading this article, you will have a clear idea about how to go about working in Texas real estate. 

Overview of Real Estate Licensing

Earning your real estate license may seem daunting at first, but if you follow the steps listed in this guide, you will find it a breeze. 

Getting a license is mandatory to be able to work with clients and consumers and help them buy or sell properties. 

Like most states, Texas requires all aspiring and active professionals to hold a valid state-approved license to work legally. 

With a real estate license in Texas, you can freely work with clients anywhere in the state and assist them in making decisions related to properties and real estate. 

The Texas Real Estate Commission (TREC) is the state’s highest authority for issuing and renewing real estate licenses for professionals. 

It is the responsibility of the TREC to establish state-specific regulations and guidelines for salespersons, brokers, and realtors. 

The purpose of licensing is to ensure that a pre-established set of rules, regulations, and guidelines are enforced and adopted by industry professionals to protect consumer rights and interests. 

When you are starting your career, you should apply for the salesperson license as it is the easiest and simplest way to get your foot through the door and start working in real estate. 

As you gain experience, skills, and valuable industry hours, you can apply for a broker’s license in Texas by completing additional education and passing the licensing exam. 

Generally, it can take anywhere between a few weeks to a couple of months to complete all the steps involved in getting a license. 

If you are determined to fast-track the process, you can also complete the licensing journey in around 5 to 6 weeks. 

Benefits of getting a Salesperson license in Texas

You might be wondering if getting a license is worth the time, effort, and cost involved in the process.  

The answer is a resounding yes because a real estate license will open up a multitude of growth avenues and opportunities for your career. 

Irrespective of whether you want to work for a reputed brokerage firm or start your own real estate agency of your own, having a state-approved license is essential to building a long-term successful career. 

The TREC guidelines for aspiring and active real estate agents, brokers, and realtors clearly state that only licensed professionals will be allowed to take part in a real estate transaction.

This means if you are not licensed, you cannot participate in a real estate deal of any size or type, which ultimately, will severely restrict your earning potential. 

If you are still not convinced whether getting a license is worth it or not, here are some advantages you must learn about. 

1. Get more opportunities: 

When you have a real estate license, you will have more career opportunities waiting for you and you can advance further in your profession. 

Brokerages, agencies, and clients prefer working with licensed professionals to ensure they are fully compliant with state and federal regulations. 

Licensed salespersons and brokers are more employable as many high-paying job opportunities are exclusively reserved for individuals who have a valid license. 

2. Be your own boss: 

Getting your salesperson license and working in Texas real estate will enable you to build the perfect side hustle and start earning more money. 

As a licensed agent, you can work independently and need not rely on anyone else to close deals and earn your share commissions. 

With a Texas salesperson or broker’s license, you can go on to start your own real estate firm or agency and define your own rules and targets. 

3. Gain access to more listings: 

Did you know about the Multiple Listing Service (MLS) database which is a treasure trove of potential opportunities and listings in a specific area or location?

Only licensed agents and brokers in Texas get access to the Multiple Listing Service (MLS) database using which they can generate leads and convert them into clients. 

With access to MLS, you can find relevant listings faster, and you can use this database to connect with potential clients who are looking to buy or sell properties. 

In addition to the above, there are many more benefits of putting in the hours and efforts required to earn your salesperson license and start a rewarding career journey. 

If you are ready and eager to embark on the licensing journey, let us learn in detail about the Texas real estate license requirements which you must fulfill at utmost priority. 

Licensing requirements for aspiring salespersons in Texas

Are you finding it overwhelming to start a new career and find it difficult to follow the various licensing requirements? 

We have outlined all the steps you need to follow for becoming a real estate agent in Texas below. Simply go through these requirements closely and be prepared to fulfill them. 

1. Basic eligibility requirements

To obtain your salesperson license in TX, you must meet the basic eligibility and general fitness requirements established by the TREC which are as follows: 

  • Your age must be 18 years or above
  • You must be a legal resident of the US or a lawfully residing alien
  • You must have a high school diploma in education or a GED equivalent
  • You must meet the minimum standards for honesty, truthfulness, and integrity

If you meet the above statutory requirements, the next step is to fulfill the TREC educational qualifying guidelines. 

2. Salesperson pre-licensing education requirements 

As per the Texas Real Estate Commission (TREC) guidelines, completing pre-licensing education is mandatory for obtaining a real estate license and working as a qualified salesperson in the state. 

TREC requires every applicant to complete a minimum of 180 hours of pre-licensing course credits to acquire the knowledge and training required to work in the industry. 

During the 180 hours of education, you will learn about many fundamental topics and core subjects including: 

  • Principles of Real Estate 1 and 2 (60 hours)
  • Law of Agency (30 hours)
  • Law of Contracts (30 hours)
  • Real Estate Finance (30 hours)
  • Promulgated Contract Forms (30 hours)

The purpose of completing pre-licensing qualifying education is to prepare you for the industry and give you an insight into the various laws, regulations, and guidelines for real estate professionals. 

We understand that it might seem overwhelming to complete a long list of courses and topics, however, you have the flexibility to choose an education provider of your own choice and learn as per your preferred medium. 

This means you can choose to join an in-person, classroom real estate school or enroll in an online, virtual course to complete your education. 

Many students prefer learning with an online Texas real estate course as it allows them to complete the curriculum at their own pace from anywhere without having to commute daily.

Wondering how much a real estate pre-licensing education costs? The cost of a pre-licensing course in Texas varies depending on your course provider, type of license, medium of content delivery, and the type of package you choose.  

Generally, you can expect to spend anywhere between $100 to $400 on your pre-licensing education. 

It is important to note that you must only choose a TREC-approved education provider, irrespective of whether you join a physical classroom or enroll in an online course.

As per the TREC regulations, only state-approved and accredited education providers are legally permitted to provide pre-licensing education to aspiring salespersons. 

3. Complete the background verification check

Each state has its own rules and regulations for criminal history and background verification checks for aspiring real estate professionals.

The purpose of background checks is to ensure that only trustworthy, earnest, and qualified individuals can work with consumers. 

If there have been any pending criminal cases or misdemeanors, such as - any incidents of fraud, felony, and other convictions against you, your license application might get rejected. 

To complete the federal background verification and criminal history check, you must submit an electronic scan of your fingerprints to the TREC for review. 

Note that it will cost you $35 to get your electronic fingerprint scan from a state-approved live scan vendor in Texas. 

4. Pass the licensing exam

Once you have completed your education, passed the criminal history check, and got your licensing application approved, you will have to face and clear the final step of your journey. 

The TREC requires all applicants to take the salesperson licensing exam which is a closed-book, 85 multiple choice questions test. 

You will get a total of 150 minutes to attempt all the questions and to obtain your license, you must score at least 75 percent or above in the test.