Obtaining a Real Estate License
Exploring new career options? There are certainly advantages to selling real estate. If you're thinking about real estate as a career, you should give serious thought to the special qualities required.
"As in other professions, not everyone is cut out to be a real estate broker or sales associate. Persons considering a real estate career should ponder their motivation and personal qualifications before making this important decision."
Ask yourself exactly why a real estate career appeals to you. Do any of the following reasons sound familiar?
* I can make lots of money without working too hard.
* I can be my own boss, working a few hours a day and spending the rest of the time at home.
* It's easy to get a real estate license. It takes little education and training compared with other fields and besides, it's inexpensive.
* I'm so bored at home. This will get me out of the house for awhile. Besides, I enjoy looking at other people's homes.
* We'll be selling our home in a year or two, and I can save the commission by listing and selling myself.
The above statements are, of course, absolutely false. As a profession, real estate is demanding. Financial realities also must be faced before a commitment is made, or serious consequences could result. Answer the following questions as honestly as you can:
* Are you able to live on your financial assets for three months or even longer, or are you dependent on a monthly paycheck to make ends meet?
* Are you sufficiently disciplined to refrain from spending a large commission check on the premise that you might not see another for several months?
* What happens when your closing falls through and the check you counted on doesn't materialize?
Are you flexible? For example:
* Are you prepared to dash out of the house at 10:30 on a Sunday night to present a contract?
* Will you forego a long awaited evening out or an important social event to obtain that sale or listing you have pursued for so long?
* Will you burst into tears when the door is slammed in your face as you announce that you are the neighborhood real estate professional "just stopping by to get acquainted?"
Real Estate Facts
Real estate is an excellent profession, one of the best. But like others, it's not for everyone and it is most especially not for the weak-willed or the lazy. It's not for the quitter, the loser or the whiner. It is definitely not for the person with low self-esteem, a need for security or constant reassurance.
Who, then, is a good candidate for this demanding field? The person who is independent, well organized, hardworking and financially secure. The individual who is willing to work long hours and enjoys making contacts with the public, who views rejection as a challenge rather than as a personal affront. Someone who is willing to invest his or her time and money in education to improve personal knowledge and skills in the continuing quest to become more professional. The person who does not depend on such corporate benefits as paid vacations and holidays, medical and dental insurance, sick days and company paid social security and unemployment benefits.
If this description fits you, then by all means pursue a real estate career. Interview real estate professionals and listen closely to what they have to say. Take a seminar on real estate at a local college. And then, if you are still so inclined, study for your real estate license with the full knowledge that you are one who will succeed in this challenging field.
Remember, a career in real estate is not a hobby or pastime for the faint of heart. "The real estate professional devotes the same hours and personal efforts to his or her calling as does the doctor, nurse, attorney, accountant, writer or any other of a thousand dedicated specialists. To do any less would be a disservice to both yourself and the industry."
The San Antonio Board of REALTORS® is the largest professional and trade organization in San Antonio and represents over 6,700 REALTOR® members. SABOR is one of over 1,600 local boards and 54 state and territory associations of REALTORS® nationwide that make up the National Association of REALTORS® (NAR).
Salesperson Licensing
Get access to all of the up-to-date salesperson licensing information through the TREC Website below:
http://www.trec.state.tx.us/licenses/salesapp.asp
Here are 7 - Basic Steps to File Your Application for Salesperson License
1. Fill out an “Evaluation of Education Documents Form (TREC form) and mail to the Texas Real Estate Commission with a check for $30. (Address on form.) They will consider up to 4 semester hours of college in related course work (60 classroom hours). Filing this form will step up the application process. The form is available at www.trec.state.tx.us
2. While you are waiting to get a response from TREC, you may take Core Real Estate courses – four (4) are specifically mandated – ( 60 hours of Principles of Real Estate; 30 hours Law of Agency and 30 hours of Law of Contracts) and you must have at least one additional core course if you have other college. Take 3 elective core real estate courses if you have no college hours in related course work. Your education must total 210 hours of which 150 hours must be “core” real estate.
3. You will receive an evaluation letter from TREC from your “Evaluation of Education Documents” application. Please allow 10 business days for processing. If you need additional courses, send a copy of your evaluation letter with copies of your completion certificates/letters back to TREC after your education has been completed.
4. After you receive an evaluation letter indicating that you have completed all courses, you can fill out an “Application for Inactive Salespersons License” or apply on-line at www.trec.state.tx.us
5. You will be given instructions on how to download a Candidate Information Brochure. Use this information to set up an appointment with PSI (Psychological Services, Inc.) to take the state exam. You may call toll free 1-800-733-9267, fax 1-702-931-2666 to register or register on line at www.psiexams.com
6. As of January 1, 2008, all licensee applicants as well as licensed agents and brokers who are renewing will be required to provide their fingerprints before their applications will be processed. Get your Fast Print Pass from TREC by going to www.trec.state.tx.us/fastprintpass. Confirm your identity and print your Fast Pass. To schedule your appointment, go to www.l1id.com or call 1-800-467-2080. You will be asked for your zip code and will be provided information about the fingerprinting facility closest to you.
7. When you have successfully passed the state exam, your license will be issued inactive, if you have not already filed a sponsoring broker form. You will need a sponsoring broker to activate the license. Fill out the “Salesperson Sponsorship Form”.
Frequently Asked Questions
WHO NEEDS A REAL ESTATE LICENSE?
Generally, according to the Real Estate License Act, anyone who sells, purchases, rents, leases, appraises, lists or exchanges real estate for another for a fee or other consideration, must have a license. There are some exceptions, such as attorneys.
WHAT TYPES OF LICENSES ARE THERE?
A salesperson's license and a broker's license are the two types. A salesperson can engage in the practice of real estate only under the supervision of a broker. The usual working relationship between salesperson and broker is that a salesperson is an independent contractor.
WHAT ARE THE SPECIFIC REQUIREMENTS FOR A LICENSE?
You must be a resident of Texas at time of application, a U.S. citizen or legally admitted alien, at least 18 years of age, and be of good character. You must also meet an education requirement, complete an application and pass a licensing examination. Upon passing the real estate examination, your license will be placed on inactive status. After selecting a sponsoring broker, you will have your license activated by the real estate commission, and be licensed to practice under your broker. Persons residing in a state adjacent to Texas may also apply for a license if they meet all other requirements. A resident broker of another state may apply for a non-resident Texas broker's license if all requirements other than Texas residence are met. If you have been licensed in another state, you will need to submit a complete history signed by the licensing agency of the states in which you were licensed to the Texas Real Estate Commission for evaluation.
Anyone applying for or renewing a broker or salesperson license on or after January 1, 2008 must get fingerprinted in connection with the application.
WHAT ARE THE EDUCATION REQUIREMENTS FOR A SALESPERSON'S LICENSE?
For initial application, 210 classroom hours of approved educational courses, including 150 classroom hours of core real estate courses, of which a minimum of 60 classroom hours (4 semester hours) must be in Principles of Real Estate, a minimum of 30 classroom (2 semester hours) must be completed in an acceptable Law of Agency Course, a minimum of 30 classroom (2 semester hours) must be completed in an acceptable Law of Contracts Course, and 30 classroom (2 semester hours) of an approved “elective” Core real estate course. The other 60 classroom hours can be in core real estate courses, other real estate courses, or real estate related courses. For first annual renewal (re-certification) you must have sixty hours beyond the initial requirement or a total of 270 classroom hours core real estate courses. Completion certificates must be furnished to the Texas Real Estate Commission prior to your license expiration date. The second renewal will require 15 hours of Mandatory Continuing Education (MCE), of which 6 hours must be in TREC approved legal and ethics coursework.
WHO WILL TELL ME WHEN MY RE-CERTIFICATION IS DUE?
This is your personal responsibility! The information is on your pocket license. Read it!!! As a courtesy, the Texas Real Estate Commission will send a renewal notice (postcard) to your broker 90 days before your license expires, but assumes no responsibility for your being notified. Effective July 1, 2006, Salespersons under SAE must submit their education hours to TREC at least 10 business days in advance of renewing their license online. All licensees will renew online.
WHAT HAPPENS IF I TAKE MY RE-CERTIFICATION COURSE AFTER THE DUE DATE?
Contact the Application Processing Division at TREC, 512-465-3940 for an Application for Late Re-certification. You may also call 512-459-6544, or visit their website at http://www.trec.state.tx.us/. You may apply for a new license within two years from your license expiration date without taking a new exam. Of course, any time you do not have a currently active license, you cannot engage in the real estate business.
IF I HAVE A REAL ESTATE SALESPERSON'S LICENSE IN ANOTHER STATE, CAN I TRANSFER IT TO TEXAS?
No. You must meet all the requirements of a new applicant.
WHAT ARE THE REQUIREMENTS FOR A BROKER'S LICENSE?
EXPERIENCE: Two years active experience as a Texas Real Estate Salesperson during the preceding three years, or be a licensed real estate broker in another state with two year's experience in the other state as a licensed real estate salesperson or broker during the preceding three years. Your time counts from the date your license was issued, but does not include any time your salesperson's license was on Inactive Status.
EDUCATION: 900 classroom hours (60 semester hours) of core or related courses, including 270 hours of core real estate courses and 630 related hours. To file a broker application on or after Jan. 1, 2008, a 30-hour Real Estate Brokerage course must be completed as part of the 270 core hours. You must satisfy the educational requirements in effect at the time you apply for your broker's license, regardless of when you were originally licensed. If your salesperson's license application was dated on or after April 23, 1981, you must complete all salesperson re-certification hours before applying for a broker's license.
WHAT ARE "CORE REAL ESTATE COURSES"?
The core real estate subjects prescribed in the law are: Principles of Real Estate; Real Estate Law; Real Estate Finance; Real Estate Marketing; Real Estate Mathematics; Real Estate Brokerage; Property Management; Real Estate Appraisal; Real Estate Investments; Promulgated Contract Forms; Law of Contracts; Real Estate Inspections & Law of Agency.
All applicants for licensure must complete a 3-classroom hour course in equal housing opportunity, equal credit opportunity, and community reinvestment. This 3-classroom hour course is included in the Principles of Real Estate at the San Antonio Board of REALTORS® and some other schools. Three semester hours in constitutional law will also satisfy this requirement.
WHAT OTHER COURSES ARE ACCEPTABLE?
For Salespersons, approved college courses in business-related subjects, management, marketing, economics, accounting, law, urban development, mortgage lending, finance, syndication, English composition, speech, psychology, communications, city planning, business mathematics, algebra, government, and some real estate trade association courses are acceptable. Additional college courses such as advertising and sociology may be acceptable for credit.
HOW CAN I GET MY CREDITS EVALUATED?
To obtain an official evaluation of educational credits, a form entitled, "Evaluation of Education Documents" must be completed and sent to the Education Division, Texas Real Estate Commission, P. O. Box 12188, Austin, Texas 78711, along with a $30 fee and copies of all the education documents to be evaluated. Everyone, prior to filing an “Application for Inactive Salesperson License”, must submit this form.
DOES TEXAS HAVE A CONTINUING EDUCATION REQUIREMENT?
Yes. All license renewals (Sales & Brokers) must complete an approved 15-hour course during each two year licensure period. Six hours must be in TREC-approved legal update and ethics courses. The other nine hours will consist of MCE elective courses. Core real estate courses are also approved for Mandatory Continuing Education (MCE) credit but will only count toward the elective hours.
CAN I GET CREDIT BECAUSE OF MY WORK EXPERIENCE?
No.
WHERE CAN I GET THE REAL ESTATE COURSES I NEED?
The San Antonio Board of REALTORS®, Inc. has operated a real estate school accredited by the Texas Real Estate Commission since 1979. Courses are held at the San Antonio Board of REALTORS®, 9110 IH 10 West.. Courses are also available online at http://www.sabor.com/ – SABOR Online Learning.
HOW MUCH DOES A LICENSE COST?
For salesperson, a $97.00 filing fee, $10 Recovery Fund fee and the $30 evaluation fee (if it has not been paid within the 12 months prior to filing the license application) payable to the Texas Real Estate Commission. Annual renewal is currently $53.50. A $61 examination fee is payable to Psychological Services Inc. (PSI) at the time of exam.
For broker a $300 filing fee (good for 6 months) and a $30 evaluation fee (if it has not been paid within the 12 months prior to filing the license application). In the case of an out-of-state broker applying for a broker license and never licensed in Texas since 1975, the $10 Recovery fee would also be required. Renewals for 2 years are $511.00. A $61 examination fee is payable to Psychological Services Inc. (PSI) at the time of exam.
WHERE DO I TAKE THE LICENSE EXAMINATION?
After you make an application and satisfy all requirements to take the examination, TREC will mail you an approval letter with an assigned identification number to be used to schedule an exam with Psychological Services Inc. (PSI). PSI will mail candidates a Certified Information Brochure, which will include instructions on registering for the examination. The exam may be taken in San Antonio: One Park Ten, 6800 Park Ten Blvd., Suite 174-W, San Antonio, Texas 78213, or 9502 Computer Drive, Suite 105, San Antonio, Texas 78230 or in Austin: LaCosta Corporate Park, 6448 Hwy. 290 E., Suite F111, Austin, TX 78723. (Phone: 1-800-733-9267)
WHAT IF I FAIL THE LICENSE -EXAMINATION?
As soon as you complete your test, you will receive a score report indicating your score. If you fail one or more parts of your exam, you will receive instructions on retaking the examination. Scores of passing candidates will be forwarded automatically to TREC.
