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How to Become a Commercial Real Estate Agent in Texas

Published: 07-07-23 Category: Marketing

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Become a Commercial Real Estate Agent in Texas

Like every state, Texas has specific education and licensing requirements for those looking to become commercial real estate agents. Here, we'll cover what you need to know to get your real estate license and start working as a commercial real estate agent in Texas.

In order to be eligible to apply for a commercial real estate license from the Texas Real Estate Commission (TREC), applicants must:

Be at least 18 years old;
Be a US citizen or legal resident;
Meet TREC ethical guidelines; and
Request a fitness determination (optional).

From start to finish, the entire process of becoming a commercial real estate agent in Texas can take as little as a year. Let's dive in.

#1 – Complete Texas Pre-Licensing Coursework

You don't need a college degree to become a commercial real estate agent in Texas, but you do have to complete 180 hours of pre-licensing education requirements that consist of six 30-hour courses:

Principles of Real Estate I;
Principles of Real Estate II;
Law of Agency;
Law of Contracts;
Promulgated Contract Forms; and
Real Estate Finance.

You can take these courses in person or online at an accredited real estate educational institution. You must complete an approved course or else you can't use the course to your educational requirements. Each course has a final exam you must pass with at least a 70%.

#2 – Submit a License Application

After completing your coursework and passing the final exams, you can submit a real estate license application. You can file the application online with TREC online services or fill out a paper application and mail it. The application fee is $150.

Once you submit your application online or in the mail, you must also provide proof of approved pre-licensing coursework. You can submit a transcript if you've completed any of the required courses in college or university.

#3 – Pass a Background Check

As part of the application process, you will also have to get your fingerprints taken and pass a background check. You must get your fingerprints taken by the Texas Department of Public Safety. You will not be able to receive your license until you get your fingerprints taken and submit your background check.

Having a felony on your record does not necessarily mean you cannot get your real estate license. The TREC decides on an individual basis which crimes disqualify one from receiving a license. The TREC will take into account the applicant's recent conduct and rehabilitative efforts when making a decision.

#4 – Pass the Texas Licensing Exam

How to Become a Commercial Real Estate Agent in Texas

After the TREC approves your license application, you can sit for the Texas Real Estate Salesperson Licensing Exam. The exam is multiple choice and consists of both a national and a state portion. The national portion has a 150-minute time limit and 85 questions, and the state portion has a 90-minute time limit and 40 questions.

On the exam day, you need to show up thirty minutes before the exam and present a photo ID. Texas real estate license exams are administered by Pearson VUE in computer format. Exams run on a pass/fail system and you'll get your results immediately after the test. After passing, you should receive your license documents via mail in about a week.

If you fail the exam, you only have to retake the failed portion if you retest within a year. If you fail the exam more than three times before your license application expires, you will have to take additional coursework before you can retest.

#5 – Find a Sponsoring Broker

Before your license will be considered active, you have to find a sponsor broker. Sponsor brokers act as mentors and supervisors for agents, and are crucial for building your future career.

Below are some questions to help you narrow down your search for a broker sponsor:

What kind of property do they specialize in (e.g., offices, industrial, multifamily, etc.)?
What commission structure do they offer new agents?
Do they support agents with continuing education?
Is there room for career growth at the brokerage?
Do they use the latest technologies and systems?
Will they assist with finding leads and marketing?

Make sure you talk to other agents and vet multiple brokers to increase the odds of finding the right fit.

# 6 – Renew Your License

Texas real estate agents must renew their licenses every two years. In order to renew your license you must have completed 18 hours of continuing education (CE) credits.

TREC Legal Update I & II (8 hours);
Contract coursework (3 hours); and
Elective credits (7 hours).

Complete the courses and send proof to the TREC along with the license renewal fee. You may renew your license up to six months after it has expired. If you wait longer than two years after your license lapses, you will have to retake the licensing exam.

Getting Your Brokerage License in Texas

Commercial real estate agents in Texas cannot work independently and must instead work with a licensed commercial real estate broker. If you want to independently buy and sell commercial real estate, you'll need to become a real estate broker.

Becoming a commercial real estate broker in Texas has additional education and experience requirements. In order to receive your brokerage license, you must:

Have at least four years of experience as an active real estate agent;
Complete at least 270 hours of qualifying real estate coursework;
Submit an online or paper application; and
Pass the Texas real estate broker licensing exam.

Similar to the agent license exam, the broker license exam is multiple choice and has a national and state portion with 85 and 60 questions, respectively. The exam takes four hours to complete. You must also renew your brokerage license once every two years.

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