How to Become a Real Estate Broker in Texas | Full Guide

Becoming a real estate broker in Texas is a significant step up from being a sales agent. It offers greater autonomy, higher earning potential, and the opportunity to manage your own real estate business. However, it’s not an easy path, it requires dedication, education, and experience. 

Whether you’re currently a licensed real estate sales agent or just starting your real estate career, understanding the full process is essential. This guide will outline everything you need to know about how to become a real estate broker in Texas, including step-by-step instructions, costs, and Texas Real Estate Commission (TREC) requirements.

Understanding the roles: real estate agent vs. broker

Before diving into the steps to become a broker, it’s crucial to understand the differences between a Texas real estate agent and a broker:

• Real Estate Sales Agent: A licensed agent who must work under a broker’s supervision. Agents cannot operate independently and cannot hire other agents.
• Real Estate Broker: A licensed professional who has met additional education and experience requirements. Brokers can run their own firm, supervise agents, and engage in more complex transactions.

For those new to the industry, becoming a real estate agent is the first step, as it’s a prerequisite to becoming a broker. You’ll need to work as an agent for at least four years before you can apply for a broker’s license.

Why become a broker?

The role of a real estate broker is more than just selling properties—it’s about leading teams, mentoring agents, ensuring legal compliance, managing transactions, and often running an entire real estate firm. 

Brokers in Texas also earn more compared to agents. According to the Texas Real Estate Commission (TREC), a real estate broker in Texas can make around $130,000 yearly, while a licensed sales agent typically earns about $93,000. 

Step-by-Step guide to becoming a real estate broker in Texas

The path to getting a broker’s license in Texas is different depending on whether you are currently a licensed agent or someone starting fresh as a real estate professional. Below are the steps for both scenarios.

For current Texas real estate agents:

1. Verify eligibility requirements:

• Be at least 18 years old.
• Be a U.S. citizen or a legally admitted alien.
• Meet TREC’s standards for honesty, trustworthiness, and integrity.
• Must have been actively licensed for at least four of the past five years.
• Accumulate 3600 transaction points, documented through a Supplement A-Qualifying Experience Report.

2. Complete 270 hours of qualifying broker education: The broker license requires 270 hours of qualifying real estate courses plus an additional 630 hours of qualifying CE courses, or you can substitute this with a four-year degree in real estate. This coursework covers topics such as Real Estate Brokerage, Law of Agency, Contracts, and Property Management.

3. Submit the application for broker license: Submit your broker application through the TREC website, along with the $235 fee. Ensure all required education documents are attached to avoid delays.

4. Get fingerprinted and undergo a background check: Complete your fingerprinting through IDEMIA and undergo a background check by the FBI and DPS (Department of Public Safety), along with the $38.25 fee. This will confirm your eligibility and is a crucial part of the application process.

5. Pass the Texas real estate broker license exam: Pay a $39 fee and schedule your exam. The broker exam consists of 145 multiple-choice questions, divided into 85 national and 60 state-specific questions. You have four hours to complete it.
   A score of 60 correct answers on the national portion and 38 on the state portion is required to pass. You’ll receive your results immediately after the exam. If you don’t pass, you have up to three more attempts before you’re required to complete additional education hours.

6. Activate your license: Once you pass the exam, your license will be issued. You may now start your own brokerage or continue working with your sponsoring broker until you’re ready to branch out.

For individuals not yet licensed as real estate agents:

1. Become a licensed real estate agent first: To be eligible to become a broker, you must first be a licensed agent for a minimum of four years. Here’s what you need to do:

• Complete 180 hours of pre-licensing education.
• Pass the Texas real estate licensing exam for agents.
• Find a sponsoring broker to activate your license.

2. Gain work experience: Work under the supervision of a broker for at least four of the last five years. During this period, build your network, gain transaction experience, and complete 3600 transaction points.

3. Start the broker licensing process: Once you meet the agent experience requirements, follow the same steps outlined above for current agents to complete the broker-specific education, apply for a license, and pass the broker exam.

What happens after you get your broker license?

Once licensed, you have several options:

1. Start your own brokerage: You can open your own firm and hire other agents.
2. Manage a team of agents: Many brokers work under a larger brokerage but manage their own team of agents, receiving a split of their commissions.
3. Continue as an independent broker: Work independently without hiring agents, focusing on high-level property transactions.

Benefits of becoming a broker in Texas

Moving up to a broker’s license in Texas isn’t just about a new title. Here are some of the top benefits you can expect:

1. Higher Earning Potential: Brokers have higher income potential because they can receive a share of the commissions earned by agents working under them.
2. Career Autonomy: Brokers can operate independently and have control over their business decisions.
3. Leadership Opportunities: Brokers are seen as leaders in the industry and often act as mentors to newer agents.

Is it hard to become a broker in Texas?

The process is certainly more rigorous than becoming an agent, but it is achievable with dedication and proper planning. The key is to accumulate sufficient experience, complete the required education, and be prepared for the comprehensive broker exam.

How much does it cost to become a real estate broker in Texas?

Here’s a breakdown of the costs involved:

• Pre-licensing courses: $700 to $1,000
• Additional CE courses (if required): $600 to $1,000
• Application fee: $235
• Exam fee: $39
• Fingerprinting and background check: $38.25

On average, the total cost to become a broker in Texas can range from $1,500 to $2,500, depending on course provider fees and exam retakes.

Summary

Becoming a real estate broker in Texas is a rewarding step that allows you to advance your career and increase your earning potential. To do so you’ll need to invest time, effort, and resources. The process involves accumulating at least four years of active experience as a licensed real estate agent, completing 270 hours of required broker-specific courses, and an additional 630 hours of continuing education (unless you hold a relevant degree).

The entire journey may cost between $1,500 and $2,500. Additionally, the Texas broker exam is known to be challenging, so thorough preparation, including practice tests and focused study sessions, is essential for success.

Preparing for the Texas Real Estate Broker exam? Get the best exam prep materials at Lexawise to help you pass on the first try. Start today to ace your exam and become a licensed broker in Texas!