If you want to become a real estate broker in Texas, you need to know the steps. There are plenty of benefits to advancing your career. Of course, brokers can make more money, but they also take on more responsibility.
When you’re ready to grow your career in real estate, this is the next step. Becoming a broker opens up a lot of possibilities. Let’s look at the job duties of a broker and how to become a real estate broker in Texas.
Job Duties of a Real Estate Broker
As a real estate broker, you will have plenty of job duties. Most brokers take on similar job duties as agents, but they also manage a team and help agents with their transactions. Some of your job duties as an agent will include:
- Listing homes on the Multiple Listing Service for sale for clients
- Sharing your listing with other brokers to help find buyers
- Assisting buyers and sellers with real estate transactions.
- Supervising open houses and property showings
- Helping agents with transactions, showings, and other tasks
- Managing a team of agents
There are many different things you might do as a broker, depending on the position you take and the size of your team.
How to Become a Real Estate Broker in Texas in 6 Steps
Step #1 – Meet the Basic Requirements
Before you can become a real estate broker in Texas, you will have to be a legal resident of the United States, 18 years of age, and a resident of Texas. You might not need to be a Texas resident if you meet specific requirements.
You will also have to meet the Texas Real Estate Commission (TREC) qualifications for trustworthiness, integrity, and honesty. If you have been convicted of a crime or have an unpaid judgment, it might not be as easy to become a broker.
Step #2 – Fulfill the Experience Requirement
You will need to be an active experienced real estate agent in Texas for four years before you can apply to become a broker. This requirement can also be fulfilled if you were a broker in another state.
Along with this requirement, Texas also uses a points system. This system determines your eligibility based on what you have done as an agent. For example, every time you close a sale, it’s worth 300 points. However, if you get a buyer representation agreement, it’s worth 10 points. You will need to accumulate at least 3,600 points to become eligible to apply for a real estate broker license in Texas.
Step #3 – Complete the Education Requirements
Some of the strictest requirements to become a real estate broker are found in Texas. You will need to complete 270 hours of mandatory coursework and an additional 630 classroom hours. However, if you’re already a real estate agent, you have likely completed some of those hours, already.
You must complete the following mandatory courses to qualify to become a broker:
- Law of Agency
- Promulgated Contract Forms (30 credit hours)
- Real Estate Finance (30 credit hours)
- Principles of Real Estate I (30 credit hours)
- Principles of Real Estate II (30 credit hours)
- Law of Contracts (30 credit hours)
- Real Estate Brokerage (30 credit hours)
Along with these mandatory classes, you will have to complete another 630 classroom hours in any of these topics:
- Real Estate Marketing
- Real Estate Law
- Real Estate Math
- Real Estate Investments
- Property Management
- Real Estate Appraisal
- Residential Inspections for Real Estate Agents
You can also complete courses from a college or university in many different topics if you’re getting a bachelor’s degree or higher in real estate. With a four-year degree or higher, you will fulfill all the education requirements to become a real estate broker in Texas.
Step #4 – Submit Your TREC Application to Become a Texas Real Estate Broker
After meeting all the education requirements, you will need to fill out and submit your broker application form to TREC. Along with your application, you will need to pay all the necessary fees. You can submit your application online or through the mail.
Step #5 – Pass all the Screening Checks
Your fingerprints will need to be on file with the Texas Department of Public Safety (DPS). This will allow a background check to be done. After passing the background check, you will be able to move on to the final step of becoming a real estate broker in Texas.
Step #6 – Pass the Exam
You will need to schedule your exam and pass it. The state broker exam has to be passed before you can get your license. It will consist of 145 multiple-choice questions, which will include a national section (85 questions) and a state section (60 questions). You will have four hours to complete this exam.
The exam is administered by PearsonVUE.
If you want to pass the Texas real estate broker exam, you will need to get 60 questions correct on the national section and another 38 questions correct on the state section.
After passing the exam, you will get your Texas real estate broker license. This allows you to work as a real estate broker in the state of Texas. Now, you can employ agents and build a real estate team.
Frequently Asked Questions About Becoming a Real Estate Broker in Texas
What type of salary can I expect as a broker in Texas?
According to ZipRecuriter.com, a real estate broker in Texas can earn between $17K and $120K per year. The average salary is about $69K per year for Texas real estate brokers. Salary.com puts the salary range from $54K to about $78K.
You can certainly earn far more than the average salary as a broker. Many top brokers earn well over $100K per year.
How long will I need to become a real estate broker in Texas?
The process to become a real estate broker in Texas can take as long as five years. For some, it will happen in as little as one year. If you’re already an experienced real estate agent, you can get your license faster. However, if you’re new to the industry, it will take longer.
What happens if I fail to pass the broker exam?
If you fail the broker exam, you can take it again. After failing it three times, you will have to complete additional education requirements before you can retake the broker exam in Texas.
Does Texas offer reciprocity for brokers in other states?
Texas doesn’t have any reciprocity agreements with other states for brokers. Out-of-state brokers can conduct business in Texas remotely. However, if you have a broker license in another state, it won’t help you become a broker in Texas.
Will I need to complete continuing education as a broker in Texas?
Yes, you will need to pay a renewal fee and complete the necessary continuing education courses every renewal period. It’s necessary to complete 18 hours every renewal period. This will also include the TREC Legal Updates I and II, along with a six-hour Broker responsibility course.
How much does it cost to become a broker in Texas?
If you become a broker in Texas, you will pay a $235 application fee. Every renewal will cost $217 after that. You will also pay $38.25 to have your fingerprints done.
Along with the fees you pay, you will need to pay for the educational courses. This can range quite a bit, depending on the way you take the courses and the provider.
You will likely pay around $1,000 for the educational courses and another $200 for an exam prep course. The total cost will likely be about $1,500 to become a real estate broker in Texas.
Can I take the broker courses online?
Yes, you can take the education courses you need to become a broker online. There are several different providers to choose from. Many also offer exam prep and other benefits with some of the packages.
Should I become a real estate broker in Texas?
If you want to take on more responsibility and grow your career, becoming a broker makes sense. You can earn about $16,000 more per year, on average. It will also make you more marketable as many property owners prefer brokers over agents.
However, if you want to become a real estate broker, it does mean more responsibilities. You will need to have the skills to recruit, hire, coach, and manage real estate agents on your team. It can also be a rather larger financial undertaking.
If you want to get your broker license in Texas, you will need to use the steps above. There are many benefits to becoming a real estate broker in Texas. The process can take quite some time with a very large educational requirement. Plus, you will need experience as an agent first.
Texas has some of the strictest requirements for real estate brokers. However, if you complete the requirements, you will gain many benefits. Use the steps above and you can become a broker in Texas.