The Texas Real Estate License Act, known as TRELA, is the state law that governs everyone who brokers, sells, or leases real property in Texas. It is codified as Chapter 1101 of the Texas Occupations Code and is administered by the Texas Real Estate Commission (TREC), which issues licenses, approves education providers, investigates complaints, and disciplines license holders.1State of Texas. Texas Occupations Code Chapter 1101 – Real Estate Brokers and Sales Agents If you want to work in real estate in Texas, TRELA sets the terms.
Who Needs a License Under TRELA
TRELA requires a TREC-issued license for anyone who negotiates, lists, or closes real estate transactions for others in exchange for compensation. The law carves out several exemptions. Property owners selling or leasing their own real estate do not need a license. Texas-licensed attorneys are exempt when handling real estate as part of their legal practice. Licensed auctioneers can conduct a real estate auction, but once they start negotiating terms beyond the auction itself, they need a license.1State of Texas. Texas Occupations Code Chapter 1101 – Real Estate Brokers and Sales Agents
Other common exemptions include on-site apartment managers leasing units for their employer, employees of homebuilders selling the builder’s own inventory, and court-appointed trustees or executors handling real estate in estate or bankruptcy proceedings. Working outside these narrow exemptions without a license exposes you to both TREC penalties and potential criminal liability.
The Three License Types TRELA Creates
Sales Agent
The sales agent license is the entry-level credential. A sales agent can negotiate and close transactions but must work under a sponsoring broker at all times, and cannot operate independently or advertise services without the broker’s involvement.
Broker
A broker license lets you sponsor sales agents, run your own brokerage, and manage transactions independently. Qualifying requires four years of active experience as a licensed broker or sales agent in Texas during the five years before you apply, plus at least 360 points of qualifying practical experience documented on TREC’s experience report form, and 270 hours of qualifying education that includes a 30-hour real estate brokerage course finished within two years of applying.2Cornell Law School. 22 Texas Administrative Code 535.56 – Education and Experience Requirements for a Broker License
Business Entity
Corporations, LLCs, and partnerships that engage in real estate brokerage must hold a business entity license. The entity has to be registered with the Texas Secretary of State and have a designated broker who holds an active Texas broker license. If that designated broker owns less than 10 percent of the entity, the entity must maintain active errors and omissions insurance.3Texas Real Estate Commission. Certificate of Insurance for a Broker Business Entity If the designated broker’s license becomes inactive, the entity’s license goes inactive automatically.
How to Get a License
To qualify for any TREC license, you must be at least 18, be a U.S. citizen or lawfully admitted alien, and meet TREC’s standards for honesty, trustworthiness, and integrity. TREC reviews your criminal history, any unpaid judgments, and any discipline from other professional licenses. If you are worried about your background, you can request a Fitness Determination through TREC’s portal before paying for coursework.4Texas Real Estate Commission. Fitness Determination
Sales agent applicants must complete 180 classroom hours of qualifying courses from a TREC-approved provider, broken into six 30-hour courses:5Texas Real Estate Commission. Become a Real Estate Sales Agent
- Principles of Real Estate I
- Principles of Real Estate II
- Law of Agency
- Law of Contracts
- Promulgated Contract Forms
- Real Estate Finance
Expect to pay roughly $340 to $540 for the full package depending on the provider and format. Under the fee schedule effective December 15, 2025, the total application fee is $206 for a sales agent, $308 for a broker, and $309 for a business entity.6Texas Real Estate Commission. Fee Schedule You also have to complete fingerprinting through TREC’s designated vendor, IdentoGO by IDEMIA, which routes your prints to the FBI through the Texas Department of Public Safety.7Texas Real Estate Commission. Fingerprint Requirements The fingerprinting fee is separate.
After TREC issues an eligibility letter, you schedule the licensing exam through Pearson VUE for $43 per attempt. The sales agent exam has a national portion and a state portion, and you need 70 percent on each. If you fail one section, you retake only that section.8Pearson VUE. Texas Real Estate Candidate Handbook
One thing to know up front: Texas does not offer reciprocity with any other state. An active license elsewhere does not reduce your Texas requirements, and you still have to complete the full 180 hours and pass the state exam.9Texas Real Estate Commission. Does Texas Have Reciprocity With Any Other State
Keeping the License Active
Texas real estate licenses expire every two years. Sales agents pay a $110 renewal fee; brokers pay $218.6Texas Real Estate Commission. Fee Schedule Renewing late within six months puts your license on inactive status. From six months to two years past expiration, you can apply for reinstatement. After two years, you start over and retake the exam.10Texas Real Estate Commission. Renew Your Sales Agent License
First-time renewing sales agents carry the heaviest load. Before your first renewal you must complete 270 total qualifying hours. Since 180 came before licensure, that means 90 more hours of Sales Agent Apprentice Education plus 4 hours each of Legal Update I and Legal Update II, so 98 post-license hours in your first two-year cycle.5Texas Real Estate Commission. Become a Real Estate Sales Agent
After that first renewal, sales agents and brokers alike need 18 hours of continuing education per cycle: 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of contract-related coursework, and 7 hours of electives.11Texas Real Estate Commission. Renewal Education Information Brokers who sponsor sales agents, serve as a designated broker, or have supervisory duties must also take a 6-hour Broker Responsibility Course within those 18 hours.
Conduct TRELA Prohibits
TRELA lists a long set of acts that can get your license suspended or revoked.12State of Texas. Texas Occupations Code 1101.652 – Grounds for Suspension or Revocation of License A few areas account for most discipline.
Misrepresentation and fraud. False or misleading statements about a property, omitting facts that would change a buyer’s or seller’s decision, deceptive advertising, and lying on a license application are all grounds for discipline.
Trust fund violations. Earnest money and other client funds must sit in a properly maintained escrow account. Mixing client money with personal or business funds is one of the fastest ways to lose a license.
Unauthorized practice of law. Only a licensed attorney can draft legal instruments that affect title, including deeds, deeds of trust, and mortgage documents. Sales agents and brokers can fill in blanks on TREC-promulgated forms, but writing custom contract language crosses the line and can bring a court injunction on top of TREC action.13State of Texas. Texas Government Code Chapter 83 – Certain Unauthorized Practice of Law
Fair housing violations. The Texas Fair Housing Act prohibits discrimination in the sale or rental of housing based on race, color, religion, sex, familial status, or national origin, and a violation can cost you your license along with civil penalties.14State of Texas. Texas Property Code Chapter 301 – Texas Fair Housing Act
Advertising rule breaches. Every advertisement must include the license holder’s name or team name, and any name used in advertising has to be registered with TREC first. The broker’s name must appear in every ad and must be at least half the size of the largest contact information shown for a sales agent, associated broker, or team name. Sales agents cannot advertise in a way that makes them look like they run the brokerage. TREC does not require a license number in advertisements.15Texas Real Estate Commission. TREC’s Advertising Rules – What You Need To Know
Complaints and Penalties
Anyone can file a complaint against a license holder through TREC’s REALM Portal. Complaints are not accepted by phone or anonymously, and TREC will not investigate anything older than four years from the date of the incident.16Texas Real Estate Commission. How to File a Complaint TREC can also open an investigation on its own through brokerage audits, with no consumer complaint required. Brokers who fail to supervise their agents or keep required records can face penalties even when no client was harmed.
Penalties range from a formal reprimand to full revocation. Administrative fines run from $1,000 to $5,000 per violation per day depending on severity.17Cornell Law School. 22 Texas Administrative Code 535.191 – Schedule of Administrative Penalties Fraud or misappropriation of trust funds can bring criminal charges on top. A license holder who disagrees with a disciplinary action can request a hearing before the State Office of Administrative Hearings. You also have to disclose discipline from other jurisdictions when you renew.
The Real Estate Recovery Trust Account
TREC maintains the Real Estate Recovery Trust Account as a backstop for consumers who have been financially harmed by a license holder and cannot collect on a court judgment. Senate Bill 1577, effective January 1, 2024, raised the caps to $125,000 per transaction and $250,000 total per license holder.18Texas Real Estate Research Center. Real Estate Recovery Trust Account Explained
The sting for license holders: if TREC pays a claim on your behalf, your license is revoked unless you repay the full amount within 31 days of notice, and you cannot get a new license until you repay everything plus accrued interest. TREC works with the Attorney General’s collection division to recover these payments.19Texas Real Estate Research Center. Fund of Last Resort – Real Estate Recovery Trust Account Explained
Federal Rules That Sit on Top of TRELA
A Texas license does not shield you from federal law. The Real Estate Settlement Procedures Act makes it illegal to pay or accept any fee, kickback, or other thing of value in exchange for referring settlement service business. A violation carries criminal penalties of up to $10,000 in fines or one year in prison, and the person who paid for the service can sue for three times the amount of the charge.20Office of the Law Revision Counsel. 12 United States Code 2607 – Prohibition Against Kickbacks and Unearned Fees A RESPA violation can trigger federal prosecution and TREC discipline at the same time.
For any residential property built before 1978, federal law requires sellers, landlords, and their agents to disclose known lead-based paint hazards before a contract or lease is signed. The agent must provide the EPA’s lead safety pamphlet, share all available reports on lead hazards, include a lead warning statement in the contract, and give homebuyers a 10-day window to conduct a lead inspection, which can be adjusted by written agreement. Signed copies must be kept for three years.21US EPA. Real Estate Disclosures About Potential Lead Hazards