Want to Know How Do You Get Your Real Estate License in Texas? Read This beginner’s Guide
Texas is home to some of the most popular real estate markets in the country like Austin, Dallas, San Antonio and Fort Worth, making it a popular real estate market.
Buyers are flocking to Texas to buy homes and investors are also showing significant interest in the state, making it a goldmine for real estate agents and brokers.
Texas is leading the country in the number of homes being constructed and home valuation have increased by around 50 percent in the last five years.
The sustained demand for residential real estate and housing can be attributed to a strong and resilient economy which is on a growth path.
Due to lack of state tax, TX’s real estate appeal is enhanced further for buyers and retirees who are migrating to the Lone Star state for better employment and business opportunities.
Every year, thousands of beginners and working professionals aspire to join the Texas real estate industry and work part-time or full-time.
Did you know that you can make around $100,000 in annual income in Texas while earning 6 percent commission on every deal which is higher than the national average.
For aspiring real estate agents and brokers, working in TX real estate can be a great way to make a six figure income while working in a fast-growing, dynamic industry.
The best part is that you need not spend years to complete education or spend time in college to become a real estate agent.
All you need to get started is a Texas salesperson license which can be obtained by completing a set of steps and fulfilling state-specific license requirements.
If you want to gain access to a high income potential, a flexible work-life balance and professional autonomy, a career in real estate is the ideal path for you.
To unlock the benefits and reap advantages of the rewarding possibilities of TX real estate, you must earn your license first.
If you have been wondering about how can I get my real estate license in Texas and embark on an exciting career path, this in-depth guide will answer all your questions.
Why do you need a Texas real estate license
Real estate is a highly regulated and stringent industry and it is governed by a pre-established set of state and federal regulations.
To work in real estate requires you to complete certain qualifying and eligibility requirements which is a part of the licensing process.
Many beginners and students often wonder why getting a license is so important and whether or not having a license offers any practical career benefits.
For aspiring real estate agents, getting a state issued license is a mandatory requirement to legally participate in a real estate transaction.
Without a valid license, you will not be allowed to meet clients, assist them in deals or earn commissions..
The benefits of getting your Texas salesperson license are numerous and they far outweigh the time and cost you will invest to get licensed.
If you are thinking about how do I get a real estate license in Texas but also want to learn about why getting a license is essential for your career, here are some key advantages:
High earning potential:
As an entry level real estate agent, you can start making decent money and even reach a six figure income within a few years of work experience.
The starting range for a real estate agent in TX is around $50K to $70K annually and can go as high as $100K as you become more senior.
Plus, there is no limit to how much money you can earn as the more deals you close, the more commissions you can make.
If you dream of becoming financially independent, getting a license is the first step towards achieving your goal.
Promising career path:
A career in Texas real estate can offer you a steady and promising professional path in the long run.
The demand for skilled real estate agents in TX continues to grow and so do the job opportunities and avenues for income generation.
As you grow in your career, you can apply for a broker’s license in Texas and even become a realtor after gaining enough experience, skills and knowledge.
If you want to work in a high-growth, dynamic profession, then getting your license is an essential step of the journey.
Access to groups:
Only licensed professionals are allowed access to exclusive communities, networking events and specialized benefits such as the MLS (Multiple Listings Service).
With a Texas real estate license, you will be able to grow your professional network, expand your career horizon and find opportunities to generate more business.
Having a license is a badge of honor of your competency and your commitment to your career.
This is why if you want to become a part of a well-established network of professionals, you must obtain a license.
Getting your salesperson license is the first step towards becoming a recognized professional who can help people buy, sell or lease real estate in Texas.
Now that you have learned about the key benefits of becoming licensed, the next step is to understand how the licensing process works.
Basic Texas Real Estate License Requirements
As per the Texas Real Estate Commission (TREC), you must fulfill a pre-established set of licensing requirements to earn your license.
Firstly, you need to meet the basic eligibility requirements which are:
- You must be at least 18 years (or older.
- You must be a legal U.S. citizen or a lawfully residing alien
- You must have a high school education or GED equivalent
If you meet the above requirements, you can proceed to the next step which requires fulfilling the qualifying education requirements.
Texas Real Estate License Education
Completing pre license education is a mandatory requirement to become eligible for working in Texas real estate.
If you are thinking about how do I get my real estate license in Texas, then you must be prepared to complete a minimum level of training and education.
As per the Texas Real Estate License Commission, you must complete 180 hours of pre-licensing education from a state approved education provider.
Listed below are the mandatory courses which you will complete during your education:
- Principles of Real Estate 1
- Principles of Real Estate 2
- Law of Agency
- Law of Contracts
- Finance in Real Estate
- Promulgated Contract Forms
The coursework is formulated to give you an understanding of the key fundamentals and principles of the real estate industry.
You can complete education by joining a real estate college or in-person classroom, else you may choose to enroll in an online pre license course which you can complete from anywhere at your convenient time.
In the rush to complete the coursework and become licensed, many students often overlook the importance of choosing the right education provider.
Although there are a number of education providers in Texas, only a handful of them are approved by the TREC.
To safeguard your course credentials and career investment, it is important to choose only a state approved and accredited real estate college or course provider.
Pre-licensing education will help you learn about the principles and fundamentals of the real estate industry.
This will help you become knowledgeable about your job duties and responsibilities and how you must serve consumers.
The importance of pre-licensing education is that it will prepare you to enter the real estate industry with the required set of education, training and skills.
How to choose a Texas pre license education provider
Research about approved education providers
Before you join a real estate college, school or online course provider it is important to do your research about them.
Whether you opt for in-class, physical classroom based learning or online education, you must choose a state approved education provider only.
There are numerous real estate schools in Texas, however, it is important to do your homework about them and validate their accreditation before making a decision.
You can visit the Texas Real Estate Commission website for finding a list of state approved and accredited education providers.
Evaluate different course packages
The odds of your success in your career depends majorly on the quality of your course provider and their experience
After all, the better you learn, the better you will perform in your Texas real estate license test and the more confident you will feel.
Choosing a pre license education provider in TX can get overwhelming for many students, especially when there are numerous options available.
The first thing to keep in mind while choosing your pre-license course provider is the curriculum they offer.
Ideally, you should opt for a school which provides up-to-date, comprehensive study material so you get an in-depth understanding of the courses.
Secondly, you should factor in the availability of both in-person as well as online classes.
As you have to complete around 180 hours of pre-license education in TX, thus, it is critical to choose a course provider which offers maximum flexibility in terms of the course format.
Lastly, you should also compare the costs, as there are many different course packages for each budget and cost range.
Explore Full-Time vs. Part-Time Study Options
For working professionals who are transitioning into Texas real estate, managing a full-time job and completing education might be overwhelming and daunting.
Luckily, there are numerous part-time real estate courses and online classes which you can easily complete as per a convenient timeline.
By choosing a flexible learning option, you can manage your time and learning better and easily complete 180 hours of coursework in a self-paced way.
Complete license application and background verification
After completing the pre license coursework of 180 hours, you might wonder how do you get a real estate license in Texas and complete the remaining steps.
The next step is to complete your license application by going to the official website of the Texas Real Estate Commission (TREC).
Firstly, you need to register on the TREC website and create an account with the TREC online services.
Along with your salesperson licensing application, you will need to pay the corresponding one time fee of $200. You can pay the fee online using Texas’ MyLicense system along with your application.
As per the TREC license guidelines, all applicants are required to complete and clear the mandatory background identity check to obtain a real estate license.
This step is important to prove that you meet the minimum standards for honesty, integrity and good moral character.
To complete this step, you must also submit an electronic scan of your fingerprints as part of the background verification and criminal history check.
Pass the Texas salesperson licensing exam
If you have made it this far in the license process, then it’s time to prepare yourself for the final and most crucial step of your licensing journey.
Like most states, Texas requires aspiring real estate agents to take the state licensing exam and pass by scoring more than 75 percent or above to pass the test.
The test consists of both state and national specific portions and you will get a total of 2.5 hours to tackle 110 multiple choice questions.
The salesperson licensing exam can be taken at any Pearson Vue center in Texas and you can schedule the test as per your preferred day and date.
If you are unable to pass the test on your first attempt, you can retake it by paying the examination fee of $43 again.
However, if you are unable to pass the Texas real estate license exam in three attempts, you will have to complete your pre license coursework again.
The odds of your success in the real estate license test depend on how well prepared you are, thus, it is recommended that you complete your education sincerely.
Many education providers also offer specialized exam prep resources to help students prepare better for the exam.
Find employer sponsorship
After you have successfully completed your pre license education, passed the exam and cleared the federal background verification and criminal history check, you might be wondering what other steps are remaining and how to get my real estate license in Texas.
Once your documents are verified by the commission, you will receive your salesperson license within a few weeks.
However, there’s one last step you must complete to activate your salesperson license and start working with clients and earning commissions.
The TREC license guidelines and regulations require newly licensed agents to find employer sponsorship and learn under the guidance of a state licensed broker or brokerage firm.
Finding a sponsoring broker in TX is a must for every licensed professional and you can easily find one in your local real estate community or agency.
It is important to choose the right brokerage as it is going to be your first and formative experience of working in the real world.
Working under the supervision of a skilled, experienced and professional broker is a must to establish a strong foundation for a successful career in Texas real estate.
To make an informed decision about choosing a brokerage, it is important to consider key aspects such as - brokerage fees, commission split, mentorship and training resources, professional assistance and other support.
The key to finding a suitable employer for sponsorship is that you should always choose a brokerage firm who has a good reputation and considerable experience in the industry.
The decision is subjective and varies depending on the person, thus, what might work for someone else might not work for you as your goals and aspirations might be unique.
Remember that it’s going to be your first step towards learning the ropes and gaining industry experience and you should make a conscious decision based on finding a suitable fit and aligning your expectations in advance.
Timeframe for Completing Real Estate Licensing Process in Texas
Now that you have learned about all the steps required to obtain a Texas salesperson license, you might wonder how long it takes to complete the licensing process.
Generally, it takes between 3-6 months for students to complete their education, clear the licensing exam, submit the background verification documents and find a sponsoring broker,
However, the exact duration required to complete your pre-licensing education, pass the licensing exam, complete background check and other steps varies on you.
If you are determined and motivated to achieve your goal, you can move through the steps quickly and complete the license process within a couple of months..
Note that there is no official regulation or restriction regarding the timelines on how soon you can become a licensed real estate agent in TX.
However, it is important to note that you must complete the license process within one year of submitting your salesperson license application.