The difference between a real estate agent and a real estate broker is largely based on experience and education. An agent must work under a licensed broker, whereas brokers can work for themselves or hire agents to work for them. Becoming a broker in Texas requires completing additional coursework and working as an agent for four years.
In Texas, an agent or broker requires a real estate license. Individuals must be 18, complete real estate coursework, pass an exam or two depending on the license, and undergo a criminal background check.
Key Takeways
- Individuals need to get the appropriate license as either a sales agent or broker.
- Agents must work for licensed brokers, while brokers can work for themselves or hire agents to work for them.
- Agents must complete 180 hours of real estate coursework, while a broker license takes 270 hours and four years of practical experience.
- Coursework for both licenses is valid for two years after completion.
- Both licenses require passing a final exam and undergoing a background check.
License Types
The two types of licenses in Texas have different requirements. A Texas real estate agent is authorized to handle real estate transactions but must work under a licensed broker. A broker can own their own company and hire other agents to work for them.
In Texas, it takes three to four months to become a real estate agent at the sales agent level. Agents make an average annual salary of $78,390. To become a broker, candidates must take an additional 630 classroom hours in qualifying courses and have a minimum of four years of experience working as an agent. The annual salary for a Texas real estate broker averages $130,000, including commission.
Sales Agent Requirements
- Must be at least 18 years old
- Must complete 180 hours of real estate coursework through six courses through an approved provider or have a four-year degree in real estate
- Must pass a final exam
- Pass a background check
- Must be sponsored by a broker to activate the license
Broker Requirements
- Must be at least 18 years old
- Must have worked four years as an agent within the past five years
- Must complete 270 hours of real estate coursework through seven courses with an approved provider plus an additional 630 hours of approved continuing education courses or have a four-year degree in real estate
- Must pass a final exam
- Pass a background check
Individuals must disclose any criminal convictions on their application. Failure to do so is grounds for denial. Candidates must also submit a Fitness Determination application to see if they meet the trustworthiness threshold to apply for a Texas real estate license.
Cost Breakdown
- Pre-licensing exam coursework for agents can start at $149, but the average cost is $400.
- Brokers commonly spend $700 to over $1,000 to complete the required 270 hours of coursework. An additional 630 hours of necessary classroom study cost around $1,000.
- A broker application fee runs $235, while agent applications cost $185.
- Exam fees for an agent license run $43, while broker exams cost $39.
- Both licenses require fingerprints, around $39.
Application and Exam
Candidates can apply for a Texas real estate license online or by mail. The review process typically takes a few weeks, after which applicants can schedule their exam. The Texas Real Estate Commission also has an online application tracker and real estate exams are administered by Pearson VUE.
The agent exam is four hours and consists of 125 multiple-choice questions that cover national and state-specific topics. The broker exam also takes four hours, consists of 145 multiple-choice questions, and includes national and state-specific questions. The Texas Real Estate Commission provides information booklets for applicants.
Individuals are notified immediately after the exam if they have passed or failed. Those who don’t pass can retake the exam three more times for which additional fees apply. After four rounds, candidates must take 30 hours of additional coursework before they can sit for the exam again.
License Activation and Renewal
When candidates pass the exam, their license is issued within two weeks. Agents, known as sales associates, must activate their licenses by submitting an online application with a broker.
Texas real estate licenses are good for two years, and the state will notify holders approximately 90 days before their renewal. Renewal fees are $110 for an agent, while a broker license renewal costs $217.Texas real estate agents and brokers renewing their licenses must complete 18 hours of approved continuing education coursework.
What Is the Average Cost of a Real Estate License in Texas?
In Texas, an aspiring agent will spend around $600 to $700 to get their license, while a broker can expect to pay between $1,000 and $2,000 and an additional $110 to $217 annually to keep their license active.
Does Texas Have Reciprocity Agreements?
Texas does not have reciprocity agreements with any other states. Licensed Texas agents or brokers must satisfy all the requirements in additional states.
What Regulations Affect Texas Real Estate Agents and Brokers?
Texas has statutes and regulations governing real estate agents and brokers to protect the public from nefarious activity. The main acts to which licensed professionals must adhere are the Texas Real Estate License Act, the Inspector Act, the Residential Service Company Act, and the Timeshare Act.
The Bottom Line
Like many states, Texas real estate agents and brokers are licensed individuals. The process includes coursework, application costs, exams, and continuing education. Average annual salaries for agents and brokers range from $80,000 to $130,000.