The world of real estate has many different rewards for those who choose to enter it. In particular, the strong salary potential and the ability to essentially ‘be your own boss’ are two key reasons that so many are drawn to the field. But while everyone will enter the real estate world as a real estate agent, some may choose to take the next steps and become a real estate broker. Becoming one in Texas can provide numerous benefits, and is a job that is well worth considering.
But what are the Texas real estate broker requirements? It takes more time and effort in order to become a broker, and the Texas real estate broker requirements actually include putting in time as an agent before you can ‘move up’ to a broker status. However, the effort needed to complete the Texas real estate broker requirements is well worth it and could help you reach the true potential that the real estate world in Texas holds.
With that in mind, taking a closer look at what a Texas real estate broker does and what the Texas real estate broker requirements are is a good idea for anyone thinking of going to real estate school and getting their license.
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What Does A Texas Real Estate Broker Do?
Those who don’t work in real estate often refer to real estate agents and real estate brokers interchangeably – after all, both work to help people buy or sell homes in Texas, right? However, while a real estate broker can work as a real estate agent, agents are not allowed to work as a broker and handle the same responsibilities. Simply put, the two are very different – which is why the Texas real estate broker requirements are far more involved than the requirements to be a real estate agent.
So what does a broker do, exactly? It’s easiest to think of them as the next step up from an agent. These are agents who have continued their education and learned additional skills and regulations for the Texas real estate market. Essentially, they can work as an independent agent and even have other agents work for them. When a real estate agent first enters the field, they will have to work for a brokerage – a business owned by a broker.
The simplest way to look at it is this – a real estate broker can work on their own, independently of anyone else as they help clients buy or sell properties in Texas. An agent can help their clients buy or sell properties, but they must work under the supervision of a licensed broker.
Brokers will also get a small percentage of the sales that their agents make – they receive a share of brokerage profits above the basic agent commission. Brokers will also be able to access property listings that an agent may not be able to access – in particular, those on the MLS listings. This gives brokers more capabilities to perform at their best along with greater responsibilities. As such, brokers can often earn more than a traditional real estate agent. But, they’ll have to meet the Texas real estate broker requirements first.
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What Are The Texas Real Estate Broker Requirements?
So now that you know what a Texas real estate broker does, just how do you go about becoming one? There are several Texas real estate broker requirements that must be met in order to move from being an agent to becoming a broker. First, you must be a real estate agent in Texas within eh last two years or be a broker in another state. You must also have a total of four years’ experience as an active, licensed real estate agent in Texas. These four years must also be completed during the 60-month period prior to filing your application to become a broker.
The educational requirements are far more intense than those for a real estate agent. You’ll have to complete a total of 270 hours of classroom training in order to meet the Texas real estate broker requirements. These include:
- Principles of Real Estate I and II
- Law of Agency
- Law of Contracts
- Promulgated Contract Forms
- Real Estate Finance
- Real Estate Brokerage
These are the mandatory courses needed to meet the requirement for qualifying real estate courses. But, to become a broker you must also complete 630 additional classroom hours in courses that are related to real estate. This can include:
- Accounting
- Advertising
- Construction
- Finance
- Real Estate Law
- Real Estate Marketing
- Real Estate Appraisal
- Property Management
- Marketing
- Real Estate Investments
In most cases, a bachelor’s degree from a college or university will fulfill most of the Texas real estate broker requirements for additional education. Once you complete the educational requirements – and if you have four years of experience as an agent, the remaining steps are similar to those you took becoming an agent.
You’ll need to file your application and pay the initial fee, submit your fingerprints and background checks, and sit for the broker exam. The exam to become a broker is far more intense and difficult than the one needed to become a real estate agent, and if you fail it three times you will be required to return to the educational portion of the requirements as dictated by the agency.
Becoming A Real Estate Broker In Texas Well Worth Doing
While it’s true that the Texas real estate broker requirements mean that it is much more difficult to become a broker than it is to become a real estate agent, the fact is that it’s much more rewarding to enter this next phase of a real estate career. Brokers can earn much more than agents and also have additional freedoms and responsibilities that many find truly rewarding.
If you have spent years as a real estate agent and feel that it’s time to begin the process of moving on to becoming a broker, the basic Texas real estate broker requirements above should give you a clear guide as to what you can expect from the process.