How to Become a Real Estate Agent in Texas

The Texas Real Estate Commission (TREC) is in charge of licensing a real estate agent in Texas. There are various requirements that must be met prior to applying for a real estate license.

The State of Texas currently does not have reciprocity with any other states with regard to real estate licensure.

 


Here's what you need to know to become a real estate agent in Texas
1) Licensing Requirements
2) License Renewal and Continuing Education Requirements
3) What is a REALTOR®?
4) Income Potential
5) Real Estate Schools


How to Become a Real Estate Agent in Texas

1) Real Estate Agent Licensing Requirements in Texas
You MUST be licensed by the Texas Real Estate Commission (TREC) in order to be a real estate agent in Texas.

To obtain your Texas real estate license so that you can practice as a real estate agent in Texas, you must:

i) Satisfy the minimum requirements requirements to apply for the real estate license:

  1. Principles of Real Estate core real estate course (60 classroom hours)
  2. Law of Agency core real estate course (30 classroom hours)
  3. Law of Contracts core real estate course (30 classroom hours)
  4. An additional four semester (60 classroom) hours in core courses or related courses that are acceptable to the TREC.

ii) Upon satisfying the education requirements, submit a request for Evaluation of Education Documents along with copies of your transcripts. There is a $20 application fee.

iii) Receive a letter from the Texas Real Estate Commission (TREC) attesting to satisfaction of all education requirements.

iv) Complete and submit application for real estate license along with the letter from TREC and an application fee of $69.50.

v) Schedule to take the Texas Salesperson Real Estate exam upon receiving the Candidate Information Brochure (CIB) from TREC. There is a $59 exam fee.

vi) Pass the Texas Salesperson Exam. The exam consists of 80 questions on the national portion (105 minutes) and 30 questions on the state portion (45 minutes). To pass, you must answer correctly 56 questions on the national portion and 21 questions on the state portion.

vi) Arrange for a licensed Texas real estate broker to sponsor you as a salesperson. Once all licensing requirements have been satisfied, TREC will send an active salesperson license to the broker, and you may act for the broker on receipt of the license.

 

2) License Renewal and Continuing Education Requirements

The Texas real estate license must be renewed every year in order to continue practicing as a real estate agent in Texas.

There are different continuing education requirements depending on how long you've had your license. For the first 3 renewals, you must complete 30 hours of core courses or related real estate courses for each renewal.

This is called the Salesperson Annual Education requirement (SAE).

A total of 270 hours must be completed by the 3rd renewal; with a minimum of 210 hours in core courses and a maximum of 60 hours in related courses.

Once the SAE requirements have been satisfied, the Salesperson is required to complete Mandatory Continuing Education (MCE) for each renewal period.

The MCE requirement is 15 classroom hours of TREC approved MCE courses. At least 6 of the 15 hours must be in legal topics.

 

3) What is a REALTOR®?

A real estate agent is a REALTOR® when he or she pays an annual fee to be a member of the National Association of REALTORS® and subscribe to its Code of Ethics.

The agent generally join through the local board or association.

For example, in Austin, TX once you have obtain your real estate license, you may pay a fee to join the AUSTIN BOARD OF REALTORS®.

Or in Houston, you could join the HOUSTON ASSOCIATION OF REALTORS®.

Joining these local boards makes you a member of the Texas Association of REALTORS® and the National Association of REALTORS®.

All REALTORS® are real estate agents but not all real estate agents are REALTORS®.

 


4) Income Potential
Real estate agents are generally paid based on a percentage of the sales price. The seller may pay 4 to 7% of the sales price as the fee and that will usually be split 50/50 between the seller and buyer's broker.

In Texas, the current 2005 median home price is approximately $128,000. Assume that the fee is 6%, the buyer's and seller's broker is each paid 3% or $3840.

This fee is then split further between the broker and agent. Generally, for starting agents, the split is 50/50. So in this case, the agent will end up receiving $1920 for the transaction.

There is no limit as to how much an agent can make in a year - the sky's the limit.

Based on Texas' median home price and the above example, a real estate agent in Texas can make about $19,200/year by selling 10 houses a year.

By selling one house per week, the real estate agent in Texas will have a salary of $99,840.


5) Real Estate Schools

The first step to becoming a real estate agent in Texas is to take the required classes at an approved real estate school.

School status may change so it is best to call the Texas Real Estate Commission at 512.465.3989 prior to signing up for a class.

Below are real estate schools in Texas that are currently approved by the Texas Real Estate Commission :

Champions School of Real Estate  (281) 893-4484

Kaplan College  (800) 877-9080

Leonard-Hawes Real Estate School  (800) 442-4593

Purvis Real Estate Training Institute (800) 477-5803

 

 

Also check out information on how to become a real estate appraiser in Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read about other real estate careers in Texas:

 

 

 

 

 

 

 

 

 

 

 

 

 

Read some of the best real estate books out there to prepare yourself for your new career: