Texas Real Estate License Overview
Texas is one of the largest real estate markets in the United States, making it an attractive state for real estate careers. To become a licensed real estate agent in Texas, you must pass the state licensing exam administered by Pearson VUE on behalf of the Texas Real Estate Commission (TREC).
Texas Real Estate Exam Quick Facts
| Feature | Details |
|---|---|
| Exam Administrator | Pearson VUE for TREC |
| Exam Sections | National (85 questions) + State (40 questions) |
| Total Questions | 125 |
| Time Limit | 150 minutes for National, 90 minutes for State |
| Passing Score | 56/85 National (66%) + 21/40 State (53%) |
| Cost | $54 per section |
| Results | Immediate (pass/fail displayed on screen) |
Requirements Before Taking the Exam
Education Requirements
Before you can sit for the exam, you must:
| Requirement | Details |
|---|---|
| Age | 18 years or older |
| Pre-License Education | 180 hours of TREC-approved courses |
| Course Breakdown | 6 courses × 30 hours each |
Required Courses (180 Hours)
- Principles of Real Estate I (30 hours)
- Principles of Real Estate II (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Real Estate Finance (30 hours)
Courses must be completed through TREC-approved providers.
Background Check
- Submit fingerprints for FBI background check
- TREC reviews criminal history
- Some convictions may require additional review or denial
Texas Real Estate Exam Format
National Section (85 Questions)
| Topic | Percentage | ~Questions |
|---|---|---|
| Property Ownership | 8% | 7 |
| Land Use Controls & Regulations | 5% | 4 |
| Valuation & Market Analysis | 7% | 6 |
| Financing | 10% | 9 |
| General Principles of Agency | 13% | 11 |
| Property Disclosures | 6% | 5 |
| Contracts | 17% | 14 |
| Leasing & Property Management | 3% | 3 |
| Transfer of Title | 8% | 7 |
| Practice of Real Estate | 13% | 11 |
| Real Estate Calculations | 10% | 9 |
State Section (40 Questions)
| Topic | Percentage | ~Questions |
|---|---|---|
| Commission Duties & Powers | 10% | 4 |
| Licensing Requirements | 20% | 8 |
| Standards of Conduct | 30% | 12 |
| Agency Relationships | 15% | 6 |
| Contract Forms | 25% | 10 |
Texas Pass Rate
The Texas real estate exam has a pass rate of approximately 55-60% on the first attempt. This is lower than some states due to:
- Rigorous education requirements
- Detailed state-specific content
- Promulgated contract forms knowledge
| Attempt | Typical Pass Rate |
|---|---|
| First attempt | 55-60% |
| Second attempt | 65-70% |
| Third attempt | 75-80% |
Key Texas-Specific Topics
1. TREC Promulgated Contract Forms
Texas uses standardized contract forms that agents MUST use. Know these forms:
| Form | Purpose |
|---|---|
| One to Four Family Residential Contract | Most common; single-family sales |
| Farm and Ranch Contract | Agricultural properties |
| Unimproved Property Contract | Vacant land |
| New Home Contract (Incomplete) | Homes under construction |
| Condominium Resale Contract | Condo sales |
2. Texas Property Code
Key provisions to know:
- Seller's Disclosure Notice requirements
- Lead-based paint disclosure (pre-1978 homes)
- Property condition disclosure requirements
- Homestead protections
3. TREC Rules & Regulations
| Topic | What to Know |
|---|---|
| Advertising | Rules for signage, online presence |
| Trust Accounts | Earnest money handling |
| License Renewal | 4-year cycle, CE requirements |
| Prohibited Conduct | What leads to disciplinary action |
4. Texas Agency Law
Texas follows intermediary brokerage:
- Agents can represent both parties (with consent)
- Appointed licensees have specific duties
- Written disclosure required
Study Timeline for Texas Exam
After Completing 180-Hour Pre-License
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Review all 6 courses, focus on weak areas | 15-20 |
| Week 2 | National portion topics, calculations | 15-20 |
| Week 3 | State portion, promulgated forms | 15-20 |
| Week 4 | Practice exams, final review | 15-20 |
Total additional study: 60-80 hours
Texas Real Estate Exam Calculations
Math questions make up about 10% of the national portion. Master these:
Commission Calculations
Commission = Sales Price × Commission Rate
Agent Share = Commission × Split Percentage
Prorations (Texas Uses 365-Day Year)
Daily Rate = Annual Amount ÷ 365
Proration = Daily Rate × Days
Loan Calculations
Loan Amount = Purchase Price - Down Payment
LTV = Loan Amount ÷ Purchase Price
Monthly Interest = (Loan Amount × Annual Rate) ÷ 12
Property Tax
Annual Tax = Assessed Value × Tax Rate
Tax Rate often expressed as: $X per $100 of value
Area Calculations
Square Feet = Length × Width
Acres = Square Feet ÷ 43,560
Tips for Passing the Texas Exam
1. Master Promulgated Forms
These are unique to Texas and heavily tested. Know:
- What each form is used for
- Key provisions in each form
- When forms can/cannot be modified
2. Focus on the State Section
Many candidates pass the national but fail the state portion. The state section requires specific Texas knowledge.
3. Know TREC Rules
Study the Texas Real Estate License Act (TRELA) and TREC rules:
- Advertising requirements
- Trust account rules
- Disclosure obligations
- Prohibited practices
4. Practice Calculations Daily
Set aside 15-20 minutes daily for math:
- Commission problems
- Proration calculations
- Area/acreage conversions
5. Take Practice Exams Under Real Conditions
- Time yourself
- No notes or references
- Score at least 75-80% before scheduling exam
After Passing the Exam
Immediate Next Steps
- Receive your results (on screen at testing center)
- Wait for TREC processing (2-5 business days)
- Associate with a broker (required to practice)
- Complete sponsorship paperwork with your broker
- Activate your license through TREC
First-Year Requirements
| Requirement | Timeline |
|---|---|
| Associate with broker | Before practicing |
| SAE courses | 98 hours in first 2 years |
| First renewal | 2 years from license date |
Continuing Education (After First Renewal)
| Renewal Cycle | CE Hours Required |
|---|---|
| First renewal | 98 hours (SAE) |
| Subsequent renewals | 18 hours every 2 years |
Texas Real Estate Career Outlook
Salary Expectations
| Experience | Annual Income (Texas) |
|---|---|
| First year | $30,000-$50,000 |
| 2-4 years | $50,000-$80,000 |
| 5+ years | $80,000-$150,000+ |
| Top producers | $200,000+ |
Hot Texas Markets (2026)
- Austin - Tech industry growth
- Dallas-Fort Worth - Corporate relocations
- Houston - Energy sector, diverse economy
- San Antonio - Military, healthcare
- Hill Country - Retirement, vacation properties
Common Mistakes to Avoid
- Underestimating state-specific content
- Skipping math practice
- Not knowing promulgated forms cold
- Rushing through the exam
- Poor time management (240 total minutes)
Exam Day Tips
- Arrive 30 minutes early
- Bring two forms of ID
- No personal items in testing room
- Read every question carefully
- Flag difficult questions and return later
- Use all your time - don't rush