How to Get a real estate license in Texas
Getting your Texas real estate license might seem daunting, but with the right guidance, it’s a straightforward process. This comprehensive guide will walk you through each step, ensuring you’re well-prepared to start your real estate career in Texas. Let’s get started on your journey to becoming a licensed real estate agent.
We'll walk you through 6 easy steps
Understand the Basic Requirements
Before getting into the specific steps, it’s important to understand the fundamental requirements for obtaining a Texas real estate license. Here’s what you need to know:
Age Requirement
Applicants must be at least 18 years old to apply for a real estate license in Texas. This age requirement ensures that applicants have reached a level of maturity and legal responsibility needed for the profession.
Residency and Identification
You don’t need to be a Texas resident to obtain a license, but you must have a valid Social Security number. This identification is essential for the background checks and compliance with state regulations. Out-of-state applicants must fulfill the same criteria as Texas residents.
Honesty and Integrity
Integrity is a cornerstone of the real estate profession. The Texas Real Estate Commission (TREC) will conduct a detailed background check, and any criminal convictions may lead to a denial of your application. Being transparent about any past legal issues and showing evidence of rehabilitation can positively influence your application.
Step 1: Take a Real Estate Pre-Licensing Course
In Texas, aspiring real estate agents must complete 180 hours of pre-licensing education. This education is divided into several courses that cover critical topics such as real estate principles, contracts, and Texas-specific laws.
Course Breakdown
Real Estate Principles I & II (60 hours):
These courses provide a strong foundation in real estate, covering essential concepts such as property ownership, land use controls, and state regulations. Mastering these principles is vital for anyone aiming to succeed in the Texas real estate industry.
Law of Agency (30 hours):
This course focuses on the legal relationships between agents, brokers, and clients. It covers the responsibilities and duties of real estate professionals under Texas law, helping ensure that agents can effectively represent their clients.
Law of Contracts (30 hours):
In this course, students learn about the creation and enforcement of contracts in real estate transactions. It includes the necessary forms, clauses, and legal considerations required to draft and execute contracts legally in Texas.
Promulgated Contract Forms (30 hours):
This course delves into the specific contract forms required by the Texas Real Estate Commission (TREC). Understanding these forms is crucial for legally binding agreements in real estate transactions.
Real Estate Finance (30 hours):
This course covers the financial aspects of real estate, including mortgage lending, loan processing, and financial calculations. It’s designed to equip agents with the knowledge they need to assist clients with securing and managing financing for real estate purchases.
Choosing the Right Real Estate School
Selecting the right real estate school is crucial. Look for accredited schools that offer flexibility, especially if you have a busy schedule. Online courses can provide the convenience of studying at your own pace.
Research and Reviews:
Start by researching various real estate schools and reading reviews from past students. Look for schools with high pass rates for the real estate exam and positive feedback on their teaching methods.
Online vs. In-Person:
Decide whether you prefer online or in-person classes. Online courses offer flexibility and convenience, allowing you to study at your own pace. In-person classes provide direct interaction with instructors and peers, which can enhance your learning experience.
Course Materials and Support:
Evaluate the course materials and support services provided by the school. High-quality textbooks, interactive lessons, and access to instructors for questions can significantly impact your success. Some schools also offer additional resources like exam prep courses and study groups.
Study Tips
Daily Study Schedule:
Create a daily study schedule that covers all exam topics, ensuring regular review sessions. (Asana provides a great FREE task manager)
Flashcards:
Utilize flashcards for key terms and concepts to enhance memorization. (These Quizlet Flashcards may be helpful)
Practice Tests:
Regularly take practice tests to gauge your understanding and get familiar with the exam format. (Free Texas Real Estate Practice Exam)
Step 2: Submit Your Texas Real Estate License Application
After completing your pre-licensing education, the next step is to submit your license application to the Texas Real Estate Commission (TREC)
Steps to Submit Your Application
Complete the Application Form: Fill out the online application through the TREC website. You can create an account and access the application portal directly.
Gather Required Documents: Ensure you have proof of completed pre-licensing education and your identification documents ready for submission.
Schedule Fingerprinting: Schedule an appointment with an approved fingerprinting service provider. TREC requires that your fingerprints be submitted to the Texas Department of Public Safety (DPS).
Submit Your Application: Submit your application online through TREC’s eLicensing system. Double-check that all information is accurate and complete before submission.
Application Processing Time
TREC typically takes several weeks to process your application. They will review your education transcripts and verify that all requirements are met. Make sure your application is complete to avoid delays.
Tracking Your Application
You can track the status of your application online through TREC’s website. Regularly checking the status can help you stay informed of any issues or additional requirements. If there are delays, contacting TREC directly can provide clarification and help expedite the process.
Step 3: Pass the Texas Real Estate Exam
The exam is a 4-hour test with 125 multiple-choice questions. You need to score at least 58% to pass. Each attempt requires a new application and a fee of $54.
Salesperson Examination Content
Property Fundamentals
- This category encompasses the essential characteristics and legal frameworks surrounding real estate. It includes the foundational aspects of property, its legal identification, and how it can be used or modified.
- Included Topics:
- Real property characteristics, legal descriptions, and property use
- Forms of ownership, transfer, and recording of title
- Property disclosures and environmental issues
Real Estate Transactions and Practices
- This category focuses on the processes and practices involved in conducting real estate transactions. It includes the legal agreements between parties, standard practices within the industry, and the steps required to complete a transaction.
- Included Topics:
- Real estate contracts and agency
- Real estate practice
- Financing and settlement
Valuation and Analysis
- This category deals with the assessment of property value, including the methods used to appraise real estate and the mathematical calculations required in real estate transactions.
- Included Topics:
- Property value and appraisal
- Real estate math calculations
Preparation Tips
Review Course Materials:
Go over the textbooks and notes from your pre-license courses. Revisiting these materials can reinforce your understanding of key concepts. Focus on areas where you feel less confident to ensure a well-rounded preparation.
Practice Exams:
Take as many practice exams as possible. This helps you get familiar with the exam format and identify areas where you need more study. Practice exams can also help you manage your time effectively during the actual test. (Free Texas Real Estate Practice Exam)
Study Groups:
Join or form study groups. Discussing topics with peers can enhance understanding and retention. Study groups provide a platform to share knowledge, ask questions, and support each other.
Exam Prep Courses:
Consider enrolling in an exam prep course for additional support and structured study. These courses often include practice exams, study guides, and expert instruction. Investing in a prep course can increase your chances of passing the exam on the first attempt.
Exam Day Tips
Arrive Early:
Ensure you arrive at the exam center early to avoid any last-minute stress. Arriving early gives you time to settle in and focus before the exam begins. Check the location and travel time in advance to plan your journey.
Bring Required Identification:
You’ll need a valid photo ID to enter the exam. Make sure your ID is current and matches the name on your application. Having all necessary documents ready can prevent any issues at the exam center.
Stay Calm and Focused:
Read each question carefully and manage your time wisely. Staying calm and composed can help you think clearly and avoid mistakes. Take deep breaths and stay positive throughout the exam.
Exam Room Etiquette:
Follow all instructions given by the exam proctors. Adhering to the rules ensures a smooth and fair testing experience for everyone. If you have any questions or issues, ask the proctors for assistance.
Step 4: Complete the Fingerprinting Requirement
After passing the Texas real estate exam, you must complete the fingerprinting requirement for a background check. This is a crucial step to ensure you meet the honesty and integrity standards set by the Texas Real Estate Commission (TREC).
How to Get Fingerprinted
Use a fingerprinting service provider approved by the Texas Department of Public Safety (DPS). The electronic fingerprinting process, known as Live Scan, is quick and secure. Locate a nearby service provider and schedule an appointment. The cost for this service typically ranges from $40 to $60.
At your appointment, your fingerprints will be captured and electronically submitted to both the Texas DPS and the FBI for background checks. Be sure to keep a copy of any receipts or confirmation forms for your records.
Prepare to pay the fingerprinting fee, which varies depending on the provider. This fee covers the cost of the fingerprinting service as well as the background check. Verify the total cost when you schedule your appointment.
TREC will use your fingerprints to conduct a thorough background check. This process ensures you meet the necessary standards of honesty and integrity required for a Texas real estate license. Any issues identified during this check may need to be resolved before your license is approved.
Addressing Background Check Issues
If any concerns arise from your background check, you may need to provide additional documentation or explanations. Demonstrating honesty and accountability for past actions can positively influence TREC’s decision. If you encounter complex issues, consider seeking legal advice to navigate the situation effectively.
Step 5: Submit the Salesperson License Application
After passing the exam and completing the fingerprinting requirement, the next step is to submit your Sales Agent License Application to the Texas Real Estate Commission (TREC). This application confirms that you have met all the necessary requirements.
Application Checklist
Complete the Online Application:
Fill out the Sales Agent License Application form available through the TREC online portal. Ensure that all sections are completed accurately. You can access the form on the TREC website.
Attach Exam Results:
Include proof that you have successfully passed the Texas real estate exam. This documentation is essential for TREC to verify your eligibility. Keep a copy of your exam results for your records.
Include Fingerprinting Proof:
Attach the receipt or confirmation form from your Live Scan service provider. This document confirms that you have completed the fingerprinting requirement. Ensure all necessary signatures and details are included.
Pay the License Fee:
As of 2024, the fee is $225. This fee must be submitted along with your application. Be sure to keep a copy of your payment receipt for future reference.
After submitting your application, you can track its status online through the DRE’s website. Regularly checking the status can help you stay informed about any updates or additional requirements. If there are delays, contacting the DRE directly can provide clarity and expedite the process.
Step 6: Find a Real Estate Broker to Sponsor You
After passing the Texas real estate exam, your next step is to find a sponsoring broker to activate your license. It’s essential to choose a brokerage that aligns with your career goals and offers the support you need to thrive in the real estate industry.
Considerations
Seek a brokerage with a culture that is supportive and collaborative. The right cultural fit can greatly influence your job satisfaction and overall success.
Be sure to understand the financial structure of potential brokerages. Different firms offer varying commission splits, so choose one that aligns with your financial expectations and career goals.
Early career development is critical. Choose a broker who offers comprehensive training programs and mentorship opportunities, as these are crucial for building your skills and confidence.
Questions to Ask Potential Brokers
17 Brokerage Interview Questions
- What training programs do you offer for new agents?
- How does your commission split work, and are there any additional fees?
- What kind of support and resources will I have access to?
- Can you provide references from other agents in your brokerage?
Choosing the right broker is crucial as it impacts your early career significantly. Consider top-rated brokers like eXp Realty, Keller Williams, Coldwell Banker, and Compass.
Why Join Smart Agent Alliance at eXp Realty?
At Smart Agent Alliance, we offer unparalleled support and resources to new agents. As part of the Wolf Pack at eXp Realty, you’ll benefit from:
Smart Agent Alliance Benefits:
At Smart Agent Alliance, we prioritize organization, clarity, and efficiency to help our agents succeed. We provide essential onboarding resources, customizable presentations, business automations, client checklists, business assets, social media content, YouTube support, a growth plan, quality lead generation, production know-how, website support, and top-notch organizational tools.
Wolf Pack Benefits:
The Wolf Pack team at eXp Realty offers expert-led courses like Social Agent Academy 3.0, the Wolf Pack Hub, and the Investor Army for property flipping. We provide tailored assistance for new agents, developing agents, top producers, team leaders, and broker owners. Key resources include lead generation, production know-how, social media content, and YouTube support.
eXp Realty Benefits:
eXp Realty offers a comprehensive range of benefits for agents, focusing on top pay structures, low fees, and free stock options. Agents get an 80/20 commission splits that cap at $16,000 annually, with opportunities to earn 100% commission, receive annual stock awards and gain income through Revenue Share. Additional resources include 24/7 agent support, affordable healthcare, live training, and advanced tech tools like kvCORE and customizable IDX websites.
Financial Planning
Starting a career in real estate involves some initial costs and financial planning. Understanding these costs and planning accordingly will help you manage your finances effectively.
All stated fees are subject to change
Starting Costs
- Initial Expenses: These include licensing fees, marketing expenses, office supplies, and technology tools needed to start your career. For example, initial expenses may include:
- Pre-Licensing Course: $250-$800+
- Exam Fee: $54 per attempt
- Application Fee: $225
- Fingerprinting Fee: Roughly $37
- Marketing Materials: Business cards, signage, and online advertising costs
- When you join a brokerage in Texas, many will require you to become a member of the National, State, and Local Associations of Realtors. You’ll also need to budget for fees related to the Multiple Listing Service (MLS) and Supra Key services.
- National Association of Realtors (NAR):
- Membership Fees: For 2024, the NAR annual dues are $156, plus a $45 special assessment fee for the Consumer Advertising Campaign, bringing the total to $201 per year.
- Texas Association of Realtors (TAR) (now known as Texas Realtors):
- Membership Fees: The annual dues for Texas Realtors in 2024 are approximately $150. This is separate from the NAR dues.
- Local Association of Realtors:
- Membership Fees: Local association fees in Texas vary based on the specific association. For example:
- Houston Association of Realtors (HAR): The annual dues are approximately $400 to $500.
- Austin Board of Realtors (ABoR): The dues typically range from $250 to $350 per year.
- Membership Fees: Local association fees in Texas vary based on the specific association. For example:
- Multiple Listing Service (MLS):
- Fees: MLS fees in Texas depend on the region. For instance, HAR’s MLS fees are about $420 annually, while ABoR’s MLS fees are around $450 per year.
- Supra Key Fees:
- Fees: Supra Key services in Texas typically include an initial setup fee, which is around $50, and a monthly service fee ranging from $20 to $25.
- National Association of Realtors (NAR):
These fees can vary slightly depending on your exact location and the specific associations or MLS you join. It’s always a good idea to confirm the current fees with the local associations or MLS for the most accurate and up-to-date information.
Budgeting Tips
- Create a Budget: Track your expenses and forecast your income. Plan for slower months to ensure financial stability.
- Emergency Fund: Set aside an emergency fund to cover unexpected expenses or slow periods in the market
Income Management
- Commission Structure: Real estate agents typically earn commissions from sales. Understand how your brokerage’s commission structure works and how to manage irregular income streams. Commission splits can vary widely, typically ranging from 50/50 to 70/30 or higher, depending on the brokerage.
- Tax Planning: As an independent contractor, it’s important to plan for taxes. Keep track of deductible expenses, make estimated tax payments, and maintain good record-keeping practices. Consulting with a tax professional can help ensure compliance and optimize your tax strategy.
Frequently Asked Questions
What are the requirements to get a Texas real estate license?
To qualify for a Texas real estate license, you must be at least 18 years old, a U.S. citizen or legal resident, and complete 135 hours of pre-licensing education.
How much does it cost to get a real estate license in Texas?
The cost to get a real estate license in Texas typically ranges from $566 to $1,316, including a pre-licensing course ($250-$800), exam fee ($54 per attempt), application fee ($225), and fingerprinting fee ($37). Additional expenses may include optional test prep courses ($50-$200) and a license renewal fee of $245 every four years.
How long does it take to get a real estate license in Texas?
It typically takes between 2 to 6 months to get a real estate license in Texas. The exact timeline depends on how quickly you complete the 180 hours of required pre-licensing education, pass the exam, and submit your application. The processing time for the application with the Texas Real Estate Commission (TREC) can take an additional 2-3 weeks.
What is the pass rate for the Texas real estate exam?
The pass rate for the Texas real estate exam is approximately 58% for all candidates on their first attempt. This means that just over half of the test-takers pass the exam on their first try.
What happens if I fail the Texas real estate exam?
If you fail the Texas real estate exam, you are allowed up to three attempts to pass both the national and state portions of the exam. If you fail either portion three times, you are required to complete 30 hours of additional education for each failed portion before you can retake the exam.
How do I renew my Texas real estate license?
To renew your Texas real estate license, you must complete 18 hours of continuing education (CE), including 4 hours each of Legal Update I and II. Once your CE credits are recorded, you can renew your license online through the Texas Real Estate Commission (TREC) website. The renewal fee is $110 if done online. Be sure to renew your license before it expires to avoid additional late fees.