Wondering How Do You Get Your Real Estate License in Texas? Read this
Home to more than 1000 cities including Austin, Dallas and San Antonio, the real estate outlook for Texas is looking promising.
Rated as the country’s 9th highest state in terms of GDP, Texas’ real estate market is on a rise. Plus, there is no state tax in Texas which further enhances its appeal for residents.
Homebuyers and property investors and showing significant interest in the state’s housing boom.
As per research, the Texas real estate market has grown by a massive 200 percent since the last decade. It is one of the country’s fastest growing real estate markets in the country.
Due to the strong economic outlook, growing job market and a large land area, Texas is emerging as a popular migration destination for working professionals and investors alike.
Despite the slowdown, Texas’ real estate market has been consistently exhibiting resilience against the volatility of the industry.
Currently, the Lone Star state is offering exciting growth opportunities and lucrative earning prospects to licensed real estate agents and brokers.
All you need to start working in Texas’ real estate market is a state approved license which will allow you to legally be able to engage in a real estate deal and earn commissions.
A career in real estate is a lucrative call for many, but only a few make it. It offers a high earning potential, a flexible work-life balance and professional autonomy.
Did you know that a Texas real estate agent can easily make $100K in a year while enjoying additional job perks and benefits.
Imagine earning a six figure salary and achieving financial independence while being your own boss and finding your own clients.
To unlock real growth and achieve success in real estate, it takes education, skills and experience.
Many aspiring real estate agents often seek the answer to an important question - how do you get a real estate license in Texas and start a career?
If you are also keen to pursue this profession and reap the exciting benefits of Texas’ booming real estate, now is the time to start preparing.
It is important to know that getting a license requires completing multiple steps - from pre license education to passing the salesperson license exam.
We understand starting a new career might be overwhelming, especially if you are a complete beginner.
To help you get started, we have put together this in-depth guide which will give you the answers to all your queries regarding becoming a licensed real estate salesperson in TX.
Why do you need a real estate license
Many aspiring real estate agents often wonder why getting a license is such a big deal and whether or not having a license offers any practical, real-world benefits.
A real estate license is an essential career requirement and in Texas, it is mandatory to obtain your license to be able to work with clients and earn commissions.
Real estate is a highly regulated and stringent industry and it is governed by a pre-established set of state and federal regulations.
For aspiring and active real estate agents, brokers and realtors, getting a state approved license is a must in order to be legally partake in a real estate transaction.
Without a Texas salesperson or a broker’s license, you will not be legally allowed to help clients, discuss requirements, draft contracts or assist in buying or selling properties.
As per the Texas Real Estate Commission (TREC), only licensed agents and brokers get access to members-only professional communities, listing portals and community events.
This means if you do not have a license, you will miss out on opportunities to expand your network, find new clients and grow your business.
The benefits of getting your real estate salesperson license are immense and they far outweigh the time and cost you will invest.
Whether you want to work for a brokerage firm in Texas or start your own real estate agency in the future, having a license is crucial to building a successful career in real estate.
As per the TREC guidelines for professionals and firms in real estate, only licensed professionals are allowed to take part in a real estate deal.
If you are still on the fence of whether to invest the time and resources in getting your licence,here are some advantages you must learn about.
1. More growth opportunities:
Brokerages, agencies and clients prefer working with licensed professionals to ensure they are fully compliant with state and federal regulations.
When you have a real estate license, you will have more career opportunities to tap into which can help you advance in your career.
As a licensed real estate agent, you will be more employable as the best, high-paying job opportunities are reserved for individuals who have a valid license.
2. Gain access to MLS:
If you are not aware, the Multiple Listing Service (MLS) is a database of property listings in a locality or a state.
For real estate professionals, it is a treasure trove of potential opportunities and clients which you can work with.
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.
Only licensed agents are given access to the Multiple Listing Service (MLS) database using which they can find opportunities faster and convert them into clients.
3. 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.
Having a license will open up your horizons, grow your income prospects and significantly boost your career growth.
Most importantly, it will make you compliant with the state specific and federal regulations so you can practice your profession without restrictions.
There are two types of real estate licenses you can apply for - a salesperson or agent’s license or a broker’s license.
When starting your career in the industry, 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 advantages of getting a license are clear and if you are already wondering how can I get my real estate license in Texas then keep on reading to find out more.
Basic eligibility requirements for a Texas salesperson license
1. Qualifying for a Texas real estate license
So, you would like to apply for a real estate license and earn a living as a real estate agent in Texas?
Are you finding it overwhelming to start a new career and find it difficult to follow the various licensing requirements?
Before you start applying for a license and completing all the formalities and steps, it is important to evaluate your eligibility for a salesperson license in Texas.
In the coming sections, you will learn about all the steps you need to follow for becoming a real estate agent in Texas below. Let’s start with the basics first.
2. 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 GED equivalent
If you meet the above statutory requirements, the next step is to fulfill the TREC educational qualifying guidelines.
Like most states, Texas requires aspiring professionals to meet the minimum qualifying standards to prove their eligibility for a license.
The Texas Real Estate Commission (TREC) requires all applicants to meet the standards of honesty, integrity and truthfulness to work as a licensed professional.
If you meet the above statutory requirements, you can proceed to complete the next set of qualifying requirements for a salesperson license.
3. Complete Texas pre license education
To get your Texas salesperson license, you must complete the minimum education requirements established by the Texas Real Estate Commission (TREC).
To work with clients and offer professional services to meet their needs, you must first obtain the minimum level of qualifying education.
The TREC requires applicants to complete a minimum of 180 hours of pre-licensing education to acquire the knowledge and training required to work with clients.
Completing pre licensing education is mandatory for all applicants and during the 180 hour of education, you will learn about mandatory and elective courses such as:
- Principles of Real Estate 1(30 hours)
- Principles of Real Estate 2 (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Real Estate Finance (30 hours)
- Promulgated Contract Forms (30 hours)
Remember - the purpose of completing qualifying education is to prepare for the industry and learn about the industry principles, state and federal laws, regulations and operating guidelines for real estate professionals.
As a beginner, it might seem overwhelming to complete a long list of courses, however, the good news is that you have the flexibility to choose your preferred medium of learning.
This means you can choose to join an in-person, classroom based course at a real estate school or enroll in an online pre license course to complete your 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.
You can find a list of state approved education providers on the TREC website for more details.
Wondering how much does a real estate pre licensing education in Texas costs? The cost varies depending on your course provider, type of license, medium of content delivery and the type of package you opt for.
To get an estimate, you can expect to spend anywhere between $200 to $600.
If you are still looking for the answer to the question - how do I get a real estate license in Texas - keep on reading to find out about the next steps.
Pass the Salesperson license exam in Texas
So you have completed your pre licensing education, passed the background history check and duly submitted your licensing application.
Now comes the crucial part of getting licensed - passing the Texas salesperson exam and proving your knowledge and skills.
You can schedule the salesperson licensing exam at any of the Pearson VUE centers in Texas depending on your preferred location or region.
The TREC requires every student to take the salesperson licensing test which is a closed-book exam consisting of 125 multiple choice questions covering both state and national specific portions.
You will get a total of 150 minutes to attempt all the questions. To pass the test, you must score at least 75 percent or above.
The key to passing the license exam on your first attempt is to master the basics well.
You must be thorough about the Texas state laws and regulations for real estate professionals and also learn about consumer rights.
To prepare for the test, you should also make use of exam prep resources such as mock tests and sample questions.
Complete your salesperson license application
After completing your pre-licensing coursework and passing the Texas salesperson test, you will be eligible to submit your salesperson licensing application to the TREC for review.
The first step is to register yourself on the TREC website and create an account with the TREC online services.
After creating your account, you will have to submit the Texas real estate salesperson license application. Along with your application, you will need to pay a fee of $200.
Another important step is to pass the mandatory background verification and criminal history check to prove a good moral character and show that you do not have a history of felony or criminal activity against you.
To complete this step, you will need to submit an electronic copy of your digital fingerprints.
You can find a list of these vendors on the TREC website and get your fingerprints scan from any of the state approved live scan vendors in Texas.
Find employer sponsorship
Are you still thinking about how do I get my real estate license in Texas - congratulations because you’re just a few steps away from achieving your goal.
If you have made it this far and completed all the steps successfully, you will receive your license within a few weeks.
However, after receiving your license, you will have to activate it to become eligible for working with clients.
As per the TREC license regulations, it is mandatory for all newly licensed agents to work under the supervision of a state based broker or brokerage firm.
To activate your license, you must find a sponsoring broker or brokerage firm who will be willing to sponsor you.
Once you choose a sponsoring employer, you must submit your employee details to the TREC for review. Post approval, your salesperson license will be activated.
The cost of getting a Texas salesperson license
When it comes to getting your license, there are multiple steps and requirements to be completed and they all have a cost associated with them.
1. Pre licensing education
Pre license education is the most crucial and cost-intensive part of becoming licensed. Generally, pre licensing education cost can range from $200 to $600 for a salesperson license in Texas.
The cost of education varies on the course provider, course package, medium of content delivery, and other additional features of the package you have chosen.
2. Licensing exam
Passing the salesperson licensing exam is a mandator requirement of 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.
However, if you are unable to pass the test on your first attempt, you will have to pay the exam fee again for every subsequent attempt.
3. Licensing Application
To get your application processed and approved by the TREC, you will have to pay a one-time fee of $185.
4. Background verification
Clearing the federal background verification and criminal history check is another mandatory license requirement.
To do so, you will have to incur a cost of around $38 and get your fingerprints scan taken at a live scan vendor approved by the Texas Real Estate Commission.
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.