1.3 License Maintenance, Inactive Status & Continuing Education

1.3 License Maintenance, Inactive Status & Continuing Education

Exam Focus: Maintaining an active Texas real estate broker license requires strict adherence to continuing education (CE) mandates, timely renewal filings, and supervision standards. On the broker exam, candidates must know the exact composition of the 18-hour CE cycle, the January 1, 2026 change that makes the 6-hour Broker Responsibility Course universal for brokers, the critical differences between CE and Sales Agent Apprentice Education (SAE), rules governing voluntary and involuntary inactive status, and the financial penalties associated with late renewals and CE deferrals.

1. The 2-Year License Renewal Cycle

All real estate licenses issued by TREC (both individual sales agent and broker licenses, as well as business entity licenses) are issued for a term of 2 years (24 months).

Expiration Dates & Timely Renewal

• Expiration Date: A license expires two years from the date it was issued, on the last day of the issuance anniversary month. Texas does not tie real estate license expiration to the licensee's birth month — a frequent distractor on the state portion.
• Timely Renewal Requirements: To renew on time without incurring late fees or deferral penalties, the licensee must:
  1. Complete all required Continuing Education (CE) hours and have course completion certificates submitted to TREC by approved providers prior to the expiration date.
  2. Submit the completed online renewal application via the TREC Online Services portal.
  3. Pay the non-refundable 2-year renewal fee.
  4. Maintain active fingerprint clearance on file with DPS/IDEMIA.

2. Continuing Education (CE) Architecture for Brokers

Every active licensed broker must complete 18 classroom hours of TREC-approved Continuing Education during each 2-year license term.

┌──────────────────────────────────────────────────────────────────────┐
│         MANDATORY BROKER CE: 18 HOURS PER 2-YEAR RENEWAL TERM        │
├───────────────────────────────┬───────────┬──────────────────────────┤
│ COURSE                        │   HOURS   │  WHO MUST TAKE IT        │
├───────────────────────────────┼───────────┼──────────────────────────┤
│ TREC Legal Update I           │     4     │ Every license holder     │
│ TREC Legal Update II          │     4     │ Every license holder     │
│ Contract-Related Coursework   │     3     │ Every license holder     │
│ Broker Responsibility Course  │     6     │ EVERY BROKER (from       │
│                               │           │ 1/1/2026) + delegated    │
│                               │           │ supervisors              │
│ Elective CE                   │     1     │ Fills the balance        │
├───────────────────────────────┼───────────┼──────────────────────────┤
│ TOTAL                         │    18     │                          │
└───────────────────────────────┴───────────┴──────────────────────────┘

The 6-Hour Broker Responsibility Course — Universal for Brokers as of January 1, 2026

Rule change — this is the highest-yield update in Chapter 1. SB 1968 (89th Legislature), effective January 1, 2026, eliminated the old rule that limited the Broker Responsibility Course to brokers who supervised agents. TREC amended 22 TAC § 535.92 to match.

Under the current rule:

1. Every broker renewal applicant must complete the 6-hour Broker Responsibility Course, regardless of whether the broker sponsors any sales agents. A solo broker with zero agents and no supervisory role is now covered.
2. Every broker license applicant must complete the course before licensure (22 TAC § 535.56(a)(1)(C)).
3. Delegated supervisors — including a sales agent delegated under § 535.2(e) to supervise other license holders — remain required to take the course even though they are not brokers.

Because the 6-hour course now sits inside every broker's 18 hours alongside 4 + 4 + 3 required hours, a renewing broker has only 1 elective hour of discretion. A sales agent who is not a delegated supervisor has 7 elective hours instead.

The 3-Hour Contract-Related Requirement

Separate from Legal Update I and II, every license holder must complete 3 hours of contract-related coursework within each renewal cycle. TREC added this requirement because contract-form errors are among the most common sources of consumer complaints. The 3 hours may be satisfied by any TREC-approved course carrying contract-related credit; Legal Update hours do not count toward it.

Distinction: Broker CE vs. First-Time Sales Agent SAE

• Sales Agent Apprentice Education (SAE): A newly licensed sales agent renewing for the very first time does NOT take standard 18-hour CE. Instead, they must complete 90 qualifying SAE classroom hours plus TREC Legal Update I (4 hrs) and Legal Update II (4 hrs), for a grand total of 98 classroom hours.
• Brokers Never Take SAE: Broker license holders never take SAE; brokers always complete the standard 18-hour CE cycle (or satisfy CE deferral/inactive protocols).

3. Active vs. Inactive License Status

A Texas real estate license exists in one of three primary administrative states: Active, Inactive (Voluntary or Involuntary), or Expired.

┌─────────────────────────────────────────────────────────────────────────────┐
│                     TEXAS LICENSE STATUS CLASSIFICATIONS                    │
├──────────────────────────┬──────────────────────────┬───────────────────────┤
│      ACTIVE STATUS       │     INACTIVE STATUS      │    EXPIRED STATUS     │
├──────────────────────────┼──────────────────────────┼───────────────────────┤
│ • Full brokerage rights  │ • Cannot practice or     │ • License is DEAD     │
│ • May sponsor agents     │   advertise brokerage    │ • Cannot practice     │
│ • May receive commissions│ • Excluded from CE while │ • Late renewal fee    │
│ • CE required (18 hrs)   │   inactive               │   multipliers apply   │
│ • Sponsoring broker on   │ • Must pay 2-year renewal│ • 6-month hard limit  │
│   file with TREC         │   fees to avoid expiring │   before reapplication│
└──────────────────────────┴──────────────────────────┴───────────────────────┘

Voluntary Inactive Status

• Requesting Inactive Status: A broker or sales agent may place their license on voluntary inactive status at any time by filing an application with TREC.
• Exemption from CE: An inactive license holder is not required to complete CE during the period the license remains inactive.
• Mandatory Renewal Fee: To maintain an inactive license and prevent it from expiring, the license holder must continue to pay the standard 2-year renewal fee on or before each biennial expiration date.
• Prohibited Conduct: An inactive license holder is strictly prohibited from engaging in any brokerage activity, soliciting clients, negotiating contracts, hosting open houses, or advertising real estate services. Conducting brokerage while inactive is unlicensed activity subject to administrative fines and criminal misdemeanor charges.
• Referral Fees Earned While Active: An inactive license holder may receive a referral fee or commission split if and only if the brokerage act was performed while the license was actively held, even if the actual closing and check disbursement occur after the license was placed on inactive status.

Involuntary Inactive Status

Involuntary inactive status occurs automatically by operation of law in several scenarios:

1. Death or Incapacity of Sponsoring Broker: If a sole proprietor broker dies or becomes mentally incapacitated, all sponsored sales agents immediately become inactive.
2. Revocation / Suspension of Broker: If a broker's license is suspended or revoked, all sponsored agents are immediately rendered inactive.
3. Loss of Designated Broker: If a business entity's designated broker resigns or loses active status and no replacement broker is designated immediately, the entity license and all sponsored agents become inactive.
4. Termination of Sponsorship: When a broker terminates sponsorship of a sales agent (or the agent terminates sponsorship via the TREC portal), the sales agent's license immediately becomes inactive until a new broker sponsorship is filed.

Reactivating an Inactive License

To return from inactive status to active status, a broker must:

1. Submit an application for active license status to TREC.
2. Pay the statutory reactivation fee.
3. Submit proof of completion of all 18 hours of CE (Legal Update I, Legal Update II, 3 hours of contract-related coursework, and the 6-hour Broker Responsibility Course) completed within the 24 months preceding the reactivation date.

4. Expired Licenses, CE Deferral Fees & Late Renewal Multipliers

Failing to meet renewal deadlines triggers immediate statutory penalties under Texas Occupations Code § 1101.451 and TREC Rule § 535.91.

The $200 CE Deferral Fee (Active Renewal Without CE)

If an active license holder has paid their 2-year renewal fee on time but has not completed the required 18 hours of CE prior to the expiration date:

• The licensee may pay a $200 CE Deferral Fee to renew the license in active status.
• The licensee is granted an extension of 60 days from the expiration date to complete all outstanding CE.
• If all CE hours are completed and posted to TREC within the 60-day deferral window, active status continues uninterrupted.
• Failure to Complete Within 60 Days: If the CE is not completed and reported within 60 days, TREC places the license on inactive status under 22 TAC § 535.91(h)(2). There is no separate late-CE penalty in the TREC fee schedule: the broker returns to active status by completing the outstanding CE and filing an Application for Broker to Return to Active Status with the $50 Broker Request to Go Active fee. Note also that deferred CE is charged against the current period — under § 535.91(h)(3), credit for the next licensing period's CE does not begin to accrue until every deferred hour is completed.

Late Renewal Penalty Schedule (The 90-Day & 6-Month Rules)

If a license is allowed to expire because renewal fees were not paid on or before the expiration date, late renewal is governed by strict statutory windows:

                               LICENSE EXPIRES (Day 0)
                                         │
                  ┌──────────────────────┴──────────────────────┐
                  ▼                                             ▼
           1 TO 90 DAYS LATE                             91 DAYS TO 6 MONTHS
                  │                                             │
                  ▼                                             ▼
       Pay 1.5x Standard Fee                         Pay 2.0x Standard Fee
       + Complete 18 hrs CE                          + Complete 18 hrs CE
       (DPS Fingerprint Check)                       (DPS Fingerprint Check)
                  │                                             │
                  └──────────────────────┬──────────────────────┘
                                         │
                                         ▼
                            EXPIRED MORE THAN 6 MONTHS
                                         │
                                         ▼
                            CANNOT RENEW LATE!
                            • Must reapply as a new applicant
                            • Retake state licensing examinations
                            • Satisfy all current education/experience rules

• 1 to 90 Days Expired: The licensee may renew late by submitting proof of 18 hours of CE, clearing fingerprint background checks, and paying 1.5 times the standard renewal fee.
• 91 Days to 6 Months Expired: The licensee may renew late by submitting proof of 18 hours of CE, clearing background checks, and paying 2.0 times the standard renewal fee.
• More than 6 Months Expired (The Hard Cutoff): A license expired for longer than 6 months cannot be renewed late under any circumstances. The former licensee must submit a brand new application, undergo background checks, satisfy current qualifying education requirements, and retake both portions of the state licensing examination (unless a formal waiver is granted under TREC Rule § 535.58 for applications filed within 2 years of expiration).

5. Summary Reference Table: License Maintenance & Renewal Rules