How to Become a Realtor in Texas: The Licensing Process

The Texas real estate market presents a dynamic career path for individuals seeking professional opportunity and entrepreneurial independence. The process of becoming a licensed sales agent is highly regulated, requiring a structured series of steps mandated by the Texas Real Estate Commission (TREC). Successfully navigating the educational, administrative, and testing phases is required to earn the Texas Real Estate Sales Agent License. This guide provides a detailed, step-by-step roadmap to completing the required qualifications.

Confirming Eligibility and Background Requirements

Applicants must first meet the basic eligibility criteria set by the state, including being at least 18 years old. Candidates must be a citizen of the United States or a lawfully admitted alien to qualify for licensure. Meeting the Texas Real Estate Commission’s (TREC) standards for honesty, trustworthiness, and integrity is a requirement for all applicants.

A mandatory background check is conducted through the submission of electronic fingerprints to the Texas Department of Public Safety (DPS) and the FBI. Applicants with any criminal history, unpaid judgments, or disciplinary action against a professional license should request a Moral Character Determination, also known as a Fitness Determination, from TREC. This determination should be completed before enrolling in courses or submitting a full application. It provides an official ruling on an applicant’s eligibility, potentially saving significant time and expense.

Completing the Required Pre-Licensing Education

TREC requires the completion of 180 hours of qualifying real estate education before an application is accepted. This curriculum is structured into six specific 30-hour courses designed to provide a foundational understanding of the profession. All courses must be taken through a provider officially approved by TREC, whether delivered online or in-person.

The six mandatory subjects include Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contracts Forms, and Real Estate Finance. Principles of Real Estate introduces core concepts and practices. Law of Agency and Law of Contracts focus on the legal framework governing client relationships and agreements. Promulgated Contracts Forms focuses on the mandatory contract forms published by TREC, and Real Estate Finance covers the essentials of mortgages and financing.

Applying to the Texas Real Estate Commission

Once the required 180 hours of pre-licensing education are completed, the candidate must submit a formal application for an Inactive Real Estate Sales Agent License to TREC. This administrative step is usually completed online and requires payment of the state application fee. Copies of the course completion certificates must be submitted to TREC for evaluation and verification alongside the application.

After the application is processed and the background check results are cleared, TREC issues a Notice of Eligibility (NOE) to the applicant. This official notification is required before the candidate can schedule the state licensing examination. The NOE contains a unique TREC ID number necessary for the next steps in the licensing process.

Passing the Texas Real Estate Licensing Examination

The Texas real estate licensing examination is administered by a third-party testing vendor, such as Pearson VUE, and is divided into two sections. The exam consists of a National portion covering general real estate principles and a State portion focusing on Texas-specific laws and regulations. The total time allotted for the computer-based test is four hours, and both sections must be passed independently.

The National portion contains 85 questions, requiring 56 correct answers to pass. The Texas State Law portion consists of 40 questions, requiring 21 correct answers to achieve a passing score. If a candidate fails only one section, they may retake only that specific portion of the exam. Failing either section three times necessitates the completion of an additional 30 hours of qualifying education before another re-examination attempt is granted.

Securing Broker Sponsorship

Passing the state examination results in an inactive license, meaning the individual is licensed but cannot legally perform real estate activities. The Texas Real Estate License Act mandates that a sales agent cannot work independently and must be associated with an actively licensed Texas broker to activate their license. Securing broker sponsorship is the final step that allows the new agent to begin working.

Choosing a sponsoring broker requires careful consideration, as the broker provides necessary training, supervision, and access to industry resources. New agents should evaluate potential sponsors based on factors like the commission split structure, mentorship programs, and the overall office culture and fees. Once the broker agrees to sponsor the agent, they electronically file a sponsorship request with TREC, which immediately activates the sales agent’s license.

Understanding Post-Licensing Requirements

New sales agents in Texas are subject to additional educational requirements during their first two-year license term. This is known as the Sales Agent Apprentice Education (SAE) requirement and is separate from the standard continuing education required for subsequent renewals. The SAE requirement totals 98 hours of approved coursework.

This post-licensing education is composed of 90 hours of elective core courses, plus 4 hours of Legal Update I and 4 hours of Legal Update II. These courses transition the new agent from theoretical knowledge to practical application in the field. Failing to complete the full 98 hours of SAE before the first license renewal deadline will prevent the agent from renewing their license.

Starting Your Real Estate Career

With the license active and broker sponsorship secured, the focus shifts to establishing the necessary business infrastructure. A primary first step involves joining a local board of Realtors and gaining access to the Multiple Listing Service (MLS). The MLS is the database of available properties essential for client service, providing inventory data and transaction tools required to function effectively.

Agents must also implement business systems, such as a Customer Relationship Management (CRM) platform, to organize and manage client and prospect information. Initial marketing efforts should focus on leveraging the agent’s Sphere of Influence by announcing the new career to personal and professional contacts. This transition from regulatory compliance to active business development lays the groundwork for building a sustainable real estate practice.

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