Introduction
Want to learn more about building a career in Texas real estate and enjoy the perks of working in a dynamic and well-paying industry?
Every year, thousands of aspiring students and individuals aim to embark on a rewarding and fulfilling career in real estate.
Texas is home to popular cities like Houston, Austin, Orlando, Dallas-Fort Worth and San Antonio and it is witnessing record demand for residential and commercial real estate.
Thanks to the booming economy and strong job outlook, Texas is amongst the top 10 states in the country with a net positive migration rate and is currently placed as the third highest most populous state in the country.
With increasing average home value and surging inventory levels, Texas has witnessed a steady increase in the number of homes sold.
Due to its growing appeal and popularity amongst skilled workers, homebuyers and real estate investors, TX is a fertile landscape for aspiring real estate agents and brokers.
Did you know that you can make around $100K to $120K annually while enjoying an industry leading 6% commission rate, which is higher than anywhere else in the country.
Plus you will also get opportunities to enjoy additional perks and influence a consistent work-life balance where you can choose to work independently.
If you are an aspiring part-time or full-time agent ready to venture into the exciting possibilities of TX real estate, now could be a good time to start planning.
To get started in the industry, all you need is a Texas real estate license and you will be on your way to working with clients and helping them buy and sell properties.
To help you achieve this goal, we have outlined all the key steps involved in becoming a licensed real estate agent in Texas and starting your professional career.
The importance a real estate license
Like most states, Texas also requires all individuals to meet the state and federal requirements to become a licensed professional.
Real estate is a highly regulated industry which works on a pre-established set of laws and regulations, it is mandatory to fulfill the qualifying requirements to work with clients.
As per the state law, getting a state approved license is a must for every aspiring professional in order to earn commission via a real estate deal or transaction.
The Texas Real Estate Commission (TREC) requires every individuals to follow the licensing process and fulfil the various state and federal qualifying requirements.
Without a Texas salesperson or broker’s license, you will not be legally able to work with clients or assist them in buying or selling real estate anywhere in the state.
Whether you want to work to build a side-hustle or start a long-term professional journey, getting a license is both mandatory and imperative to getting the most out of your career.
Steps to obtain a real estate license in Texas
First and foremost, you must meet the minimum qualifying requirements to apply for a Texas real estate license which are as follows:
- Be at least 18 years of age (or older),
- Be a legal resident and a U.S. citizen or a lawfully residing alien.
- Have a high school diploma in education or GED equivalent
Only if you meet the above criteria, you can proceed to the next set of licensing requirements which is completing pre license education and training.
The TREC requires every individual to complete a minimum of 180 hours of pre-licensing
Education to learn about the various laws, regulations and professional guidelines.
Completing pre licensing education will also help you learn about the fundamental principles and practices of working in the industry. Listed below are some of the mandatory courses:
- Principles of Real Estate
- Real Estate Finance
- Law of Contracts
- Law of Agency
- Promulgated Contract Form
You have the flexibility to choose between an in-person, classroom based course or an online, self-paced real estate pre licensing course in Texas.
After completing the course work, you have to complete the next step which requires taking the real estate salesperson licensing test in Texas.
The licensing test in TX consists of both state and national specific portions covering general real estate topics related to state and federal laws, rules, industry principles and so forth.
You will have to attempt 110 multiple choice questions within a total duration of 2 hours and 30 minutes.
The TREC requires all students to pass the test by scoring more than 75 percent or above to obtain a salesperson license.
If you pass the test successfully, you can submit your sales associate license application for review and approval.
Note that along with your license application, you must also submit an electronic scan of your fingerprints as part of completing the background verification and criminal history check.
Lastly, once you have successfully completed all the steps and fulfilled the state and federal license regulations, you will receive your salesperson license.
However, to activate your license, you must submit employer sponsorship details and work under the supervision of a state licensed broker or brokerage firm.