The path to becoming a real estate agent in Texas
Want to make good money and enjoy work-life balance while helping people achieve their home ownership dreams? A career in Texas real estate might just be the right fit for your professional goals.
Texas offers a rich and vivid opportunity landscape for real estate agents, brokers, and realtors who want to make the most of the state’s steadily growing real estate market.
From Austin and Houston to Fort Worth and Dallas, there are many popular real estate hotspots in Texas that attract buyers and real estate investors from across the country.
Texas’ real estate is a fertile ground for aspiring agents and brokers who want to earn a six-figure income whilst enjoying the flexibility of a dynamic and satisfying profession.
If you too are interested in the rewarding benefits of working in real estate, now is a good time to start planning your entry into the exciting world of real estate as a real estate agent.
Real estate agents work with buyers and sellers and help their clients close deals faster. In exchange for their services, agents earn commissions depending on the final deal value.
The best part about becoming a real estate agent is you do not need any special education or advanced courses to join the industry.
All you need to get started is a Texas real estate license which will allow you to legally work with clients anywhere in the state.
Did you know that you can easily make around $120K as an experienced agent in the Lone Star state and the more deals you close, the higher your earning potential?
This means you can practically make more money than most traditional nine-to-five jobs while growing your network, meeting new people, and being your own boss.
If you are ready to take the leap of faith and have already started thinking about how do I get a real estate license in Texas, we have put together this article to get you started.
Our in-depth guide covers all the important and essential aspects that you must learn if you want to become a licensed real estate agent in the Lone Star state.
Understanding the need for a real estate license
Earning your real estate license may seem overwhelming or a bit unnecessary at first, but it is an absolute necessity to build a successful, thriving career.
Getting a real estate license in Texas is a legal and authorized way to participate in a real estate transaction or deal and it will give you the right to work with clients anywhere in TX.
A real estate license is a mandatory and essential step in becoming a knowledgeable, skilled, and trained professional who is confident and adept at conducting their business.
According to the Texas Real Estate Commission (TREC), every aspiring and experienced real estate professional must have an up-to-date, valid, and state-issued license to legally practice their profession in the state.
Getting a Texas real estate license will ensure that you are legally licensed to work with a real estate firm or open your own brokerage in the future.
Whether you want to work part-time or full-time, having a TX real estate salesperson license is the crucial step in ensuring you are always getting the opportunities you need to succeed.
Being a licensed real estate professional will significantly boost your employability and give you more credibility as compared to a non-licensed individual.
If you are wondering how can I get my real estate license in Texas, you must first understand the types of licenses to choose from.
There are two types of real estate licenses you can apply for - a salesperson or agent’s license or a broker’s license.
When entering the industry and starting your career, you will need to obtain a salesperson license first.
As you progress in your career and gain relevant industry experience, you can apply for a broker’s license in Texas. The licensing requirements, specifications, and costs vary depending on the type of license you are applying for.
For the scope of this article, we are going to give you a step-by-step breakdown of how to get your salesperson license in Texas.
Steps to get a Texas salesperson license
Now that you have learned about the numerous benefits and advantages of being a licensed professional in a competitive industry like real estate, it’s time to start your licensing journey.
If you have been thinking about how do I get my real estate license in Texas, we have outlined the key steps for you below.
Step 1: Meet the basic eligibility requirements
To get your salesperson license and work in the state of Texas, you must meet the basic statutory requirements established by the TREC first and prove your eligibility.
As per the TREC requirements, every applicant must:
- Be at least 18 years older or above
- A resident of the state of Texas or a lawfully residing alien
- Have a high school diploma or GED equivalent in education
- Fulfill the TREC guidelines for honesty, trustworthiness, and transparency
If you are not sure whether you fulfill the statutory requirements, you can apply for a fitness determination test before investing any time, resources or efforts to get licensed.
Step 2: Complete TREC-approved pre-licensing education
To get your real estate license in Texas, you must complete the minimum education requirements.
In the state of Texas, every applicant needs to complete 180 hours of coursework as per the TREC-qualifying education requirements.
Below is a list of the courses you will cover during 180 hours of mandatory pre-licensing education training:
- Principles of Real Estate: Worth 60-course hours (mandatory)
- Law of Agency: Worth 30-course hours (mandatory)
- Law of Contracts: Worth 30-course hours (mandatory)
- Promulgated Contract Forms: Worth 30-course hours (mandatory)
- Real Estate Finance: Worth 30-course hours (mandatory)
By completing the mandatory education, you will gain an understanding of the basic principles and key concepts of how the real estate industry works, its laws, rules, and regulations.
The purpose of completing 180 hours of coursework is to get an in-depth understanding of the fundamental principles, state and federal laws, and the various concepts of working in the real estate industry.
Note that you can choose to complete the pre-licensing education by joining an in-person, classroom-based real estate school or by enrolling in an online real estate prep course.
Irrespective of your preferred medium of learning, you must choose a TREC-approved education provider.
As per the Texas Real Estate Commission, only state-approved and accredited course providers are legally permitted to provide pre-licensing education to aspiring agents and brokers.
You can find a list of state-approved education providers on the TREC website for more details.
You will get an entire year to complete your mandatory pre-licensing education. However, you can choose to speed up the learning process and complete the coursework sooner.
Once you are through with your education and coursework, you can proceed to the next step of your licensing journey which is taking the Texas real estate licensing exam.
Step 3: Pass the Salesperson licensing exam
As per the TREC, every applicant must take the state licensing exam to obtain a salesperson license.
The licensing test is designed to test your knowledge and preparation of the courses covered during your pre-licensing education.
The exam is a closed-book test that consists of general real estate questions, state and federal laws, and related topics such as - real estate property characteristics, ethics, consumer rights, property valuation, law, and forms of ownership among others.
The test consists of 125 multiple-choice questions and you will get a total of 240 minutes to complete the test.
To pass the salesperson licensing exam, you must score at least 75 percent or above in the final test.
You can schedule the salesperson licensing exam at any of the Pearson VUE centers in Texas depending on your preferred location or region.
Step 4: Complete background verification
TREC requires all applicants to complete mandatory background verification and undergo a federal criminal history check to prove good moral character.
Since real estate is a licensed and regulated industry where you will be dealing with sensitive financial and personal information, it is essential to pass this requirement.
To complete this step, you need to submit an electronic copy of your fingerprints to the TREC for verification.
To get your fingerprint scan, you can visit any of the state-approved live scan vendors by scheduling an appointment on the TREC website.
Step 5: Find employer sponsorship in Texas
After successfully clearing the licensing test and passing your background verification, you must find employer sponsorship to activate your salesperson license.
In the state of Texas, it is mandatory for all newly licensed agents to work under the supervision of senior brokers with more industry experience.
To do so, you must work with a sponsoring broker or brokerage firm with an active Texas license.
Once you decide on a sponsoring employer, you need to submit their details to the TREC for review. Post their approval, your salesperson license will be activated.
How much does it cost to get a salesperson license in Texas?
Many aspiring professionals often wonder about the total cost and money required to obtain a salesperson license in Texas and whether it is as expensive as it seems.
When it comes to getting licensed, there are many different steps and requirements involved in the journey with each having their specific cost factor. Let’s take a look at these next.
1. Pre-licensing education
Generally, pre-licensing education costs can range from $200 to $500 for a salesperson license in Texas.
The cost of education varies, depending on the course provider, type of license, medium of content delivery, and other additional features and benefits of the chosen package.
2. Licensing exam
Passing the salesperson licensing exam is a crucial step in the journey of becoming a licensed real estate agent in Texas.
If you are applying for a real estate agent license, the exam fees will cost you $43 per attempt.
3. Licensing Application
The TREC will charge you a one-time fee for processing your salesperson licensing application and issuing your license. For a salesperson license, the application processing fee is $185.
4. Background verification
Completing a background verification and criminal history check will require you to pay the fee to get your electronic fingerprint scan which is $38.25.
5. License issuance
To get your Texas salesperson license activated for use, you will be required to pay a license issuance fee of $150 to the TREC.