What is the TREC and how is it relevant for your real estate career
Real estate is a dynamic, fast-moving industry that is governed by a unique set of laws, regulations, and rules.
If you are an aspiring real estate professional residing in Texas, it is important to familiarize yourself with your profession’s regulatory body and its role, duties, and responsibilities.
In Texas, it is the duty of the Texas Real Estate Commission to act as the regulatory agency for matters concerning real estate.
The TREC in Texas is the state’s highest authority which is in charge of overseeing the various functions of the real estate industry including licensing and compliance.
It was established in 1949 with the goal to establish, withhold, and promote the highest standards of professionalism and customer service.
The TREC is responsible for implementing the state laws and regulations that govern the activities of real estate professionals, firms, and companies in Texas.
Additionally, it is the duty of the Texas Real Estate Commission to establish and enforce the best practices and industry standards for all professionals and firms working in the state.
Since buying and selling a home or a commercial property is a significant decision in both financial and personal sense, it is crucial to ensure disputes or conflicts are resolved swiftly.
The TREC is in charge of resolving any consumer complaints of any wrongdoings, or criminal or unlawful activities conducted by a real estate professional or firm in the state of Texas.
The responsibilities of the Texas Real Estate Commission
The Texas Real Estate Commission (TREC) plays a pivotal role in administering the key functions of the state’s real estate industry.
The genesis of the commission was followed by the establishment of the Texas Real Estate Licensing Act (TRELA) which outlined and defined the rules and regulations for the industry.
The guiding principles of the TRELA were based on the core belief that only eligible and qualified professionals must be allowed to represent clients in a real estate deal.
If you are wondering what exactly TREC does and what are its roles and responsibilities, then continue reading.
First and foremost, the TREC ensures the licensing and regulation of the professionals and firms working in the industry.
TREC is the authoritative and regulatory body which is responsible for establishing the operating principles, code of conduct, and guiding standards for the industry.
Real estate agents, brokers, realtors, appraisers, home inspectors, and real estate developers are expected to adhere to the laws and regulations enforced by the TREC.
Secondly, it is the duty of the TREC to protect and safeguard the interests and rights of consumers of the state of Texas.
As the commission of real estate, TREC ensures that consumers are updated and educated about their rights and are cognizant of how to protect themselves against unlawful activities.
TREC also investigates consumer complaints and presides over any jurisdiction decisions against any individuals or professionals who are engaging in unlawful or fraudulent activities.
If any real estate professional is proven guilty of financial fraud, misinformation or misrepresentation, unethical behavior, misconduct, or any other criminal and unlawful activity, then the TREC reserves the right to take appropriate disciplinary action against them.
To summarize, the TREC is responsible for the following key functions and duties which are:
- Administrative
- Regulatory
- Enforcement
- Education and Training
- Consumer Rights Protection
Overall, it is TREC that acts as a single source for issuing and renewing licenses, maintaining and promoting professional standards, and enforcing state and industry laws.
Additionally, the commission also promotes education for professionals and consumers to ensure competence, trust, and truthfulness prevail in the industry.
If you want to learn more about the commission, you can visit the official website and refer to the links related to your topic of interest.
The role of TREC in your career journey
You might be wondering what role TREC Texas real estate plays in your journey as a real estate professional.
Since it is the authority and responsibility of the TREC to issue and update licenses of real estate professionals, it plays a crucial role in your career.
As per the TREC regulations and guidelines, every individual must meet the minimum standards for honesty, integrity, and truthfulness to qualify for a career in real estate.
The TREC requires individuals to undergo a fitness determination test and answer questions about their professional background and criminal history (if any).
As part of the background verification and criminal history check, you will have to submit an electronic scan of your fingerprints to the Department of Public Safety in Texas.
In the event that you have any criminal history or felony, the TREC has the right to conduct an investigation to understand the severity and extent of the charges against you.
Based on the findings gathered by the commission and your level of eligibility, TREC can decide whether you have a moral character worthy enough to get a professional license.
Additionally, the TREC also requires individuals to complete a minimum level of education and training to qualify for a state-approved license.
One of the qualifying requirements for getting a real estate license in Texas is that you need to complete a minimum of 180 hours of pre-license education in the state.
Irrespective of whether you are a complete beginner or an experienced professional switching careers to work in real estate, you must adhere to the TREC guidelines.
Whether you want to work part-time or as a full-time agent, your career journey will be based on the state-specific laws, rules, and regulations established by the TREC.
This is why it is important to understand the intricacies, duties, and guidelines of the TREC so you can navigate through the various stages of your career in Texas with confidence.
Next, let us walk you through the various steps required in getting licensed along with the state-specific licensing requirements established by the Texas Real Estate Commission.
Getting a Texas agent license with TREC
Despite the promising opportunities and potential in Texas' real estate, there are not enough real estate professionals to cater to the growing demand.
If you are interested in entering the market, now is a good time to get started.
Your journey in Texas’ booming real estate market will start with getting a salesperson or an agent license.
Although you can also obtain a broker’s license in your career, you must start as a real estate agent and gain a few years of industry experience to apply for a broker’s license.
To obtain your license, you must complete all the state and federal licensing requirements and ensure that every criterion is met.
The first step is to ensure that you are eligible to apply for a real estate license. To determine this, you must meet the below listed statutory requirements.
- You must be 18 years of age or older
- You must be a legal resident of the state of Texas
- You must have a high school diploma or GED equivalent in education
The next step is to fulfill the qualifying education requirements established by the TREC according to which you must complete 180 hours of course credits to qualify.
The TREC requires all applicants to complete their education from a state-approved education provider only.
However, you are free to choose your preferred learning medium i.e. you can decide if you want to join a classroom-based, physical college environment or complete your courses in an online, instructor-led, or self-paced course.
Most students prefer the convenience and flexibility of learning through online real estate classes as they can be completed from anywhere on any device.
Completing pre-license courses will equip you with the knowledge of the principles of real estate. You will also learn about the various state and federal laws and regulations.
After completing 180 hours of mandatory pre-license education, your next step is to take the Texas real estate licensing exam.
The TREC has made it mandatory for all applicants to take the exam and pass it to get their license.
The exam consists of 120 multiple-choice questions in total covering both state and national-specific topics and related questions.
To pass the licensing test in Texas, you must score at least 75 percent or above. Note that the test is administered by a third-party testing provider in Texas.
If you successfully pass the exam, you will immediately receive a confirmation and within a few days or a couple of weeks, you will also obtain your Texas real estate license.
However, you need to complete another important licensing requirement by undergoing the mandatory background verification and criminal history check.
TREC will evaluate the background of every applicant to ensure the personal, professional, and related information provided is accurate and up to date.
If you have any criminal history, the commission will allow you to present your case and history before accepting or rejecting your license application.
Note that passing the background check is essential for getting a state-approved real estate license.
If you pass the licensing test but are rejected by the TREC due to any history of felony or criminal activity, your application will be considered void.
However, if your background verification check comes clean and you are considered someone with good moral character, you should not face any issues in getting a license.
After your background verification process is completed, you can proceed to complete another crucial license requirement.
The Texas Real Estate Commission requires all agents to find employer sponsorship and work under the supervision of a senior broker licensed in Texas.
The law requires you to find a more experienced broker who will be willing to sponsor you as an employer. You will have to submit your employer sponsorship details to the commission.
Completing this step is crucial in starting your career and gaining practical, real-world industry experience as a real estate agent.
Working with senior brokers and professionals can help you understand the workings of your profession and gain valuable insights and learnings for your career.
Once you submit your employer sponsorship details on the TREC website, your license will be activated and you will be able to work with clients.
However, as a licensed real estate professional in Texas, you must keep another important detail in mind to ensure regulatory and professional compliance.
The TREC requires newly licensed agents and brokers to complete additional education post getting their licenses.
This step is essential to keep your knowledge of the industry laws, licensing guidelines, and industry developments latest and up to date.
You must complete continuing education courses in Texas and duly submit the certificate of completion to the commission to get your license renewed.