7.1 Texas Licensing and TRELA

TREC and the Texas Real Estate License Act

The Texas Real Estate Commission (TREC) is the state agency that licenses and regulates real estate brokers, sales agents, inspectors, and easement-or-right-of-way agents. TREC's authority comes from the Texas Real Estate License Act (TRELA), codified at Chapter 1101 of the Texas Occupations Code, and from the TREC Rules in Title 22, Part 23 of the Texas Administrative Code. TRELA is the statute; the TREC Rules are the agency's detailed implementation of it. The exam tests both.

TRELA's core purpose is consumer protection. It defines who must be licensed, sets education and exam standards, lists prohibited conduct, and authorizes discipline ranging from reprimand to revocation, plus administrative penalties of up to $5,000 per violation per day. Acting as a broker or sales agent without a license is a Class A misdemeanor.

Broker vs. Sales Agent

TRELA recognizes two active license types, and the distinction is fundamental:

A sales agent must be sponsored by an active Texas broker to perform any act requiring a license. The sponsoring broker is legally responsible for the agent's brokerage activities and supervises the agent. A sales agent may not receive a commission directly from anyone except the sponsoring broker, and may not hold earnest money or other trust funds — those flow through the broker.

Active vs. Inactive Status

A license is active only while the agent is sponsored by a broker who has recorded the sponsorship with TREC. The moment sponsorship ends — the agent quits, is terminated, or the broker's license lapses — the agent's license becomes inactive. An inactive license is still a valid license, but the agent may not perform any act requiring a license until a new broker sponsors them. There is no fee to change sponsors. An agent can also voluntarily place a license on inactive status while keeping it current through renewals.

Initial Licensing Requirements

To become a Texas sales agent, an applicant must:

1. Be 18 or older and a U.S. citizen or lawfully admitted alien;
2. Meet TREC's standards of honesty, trustworthiness, and integrity;
3. Complete 180 hours of qualifying education from a TREC-approved provider;
4. Submit the application and fee through TREC's online system;
5. Submit fingerprints for a criminal background check; and
6. Pass the licensing exam at Pearson VUE.

The 180 qualifying hours are six 30-hour courses:

Applicants uncertain about a criminal history may request a Fitness Determination from TREC before investing in coursework. TREC weighs the nature of the offense, time elapsed, and evidence of rehabilitation.

The Licensing Exam

The sales-agent exam is delivered by Pearson VUE and split into a national portion and a Texas state-law portion. A candidate must score 70% on each portion separately — passing one does not carry the other. If only one portion is failed, only that portion is retaken. The exam combines scored questions with a small number of unscored pretest items, and candidates receive a diagnostic report on any failed portion.

Exam trap: The two portions are scored independently. A strong national score cannot rescue a failing state-law score, so Texas-specific material — TREC, TRELA, promulgated forms, intermediary — must be mastered, not skimmed.

SAE and the First Renewal

Texas licenses renew on a two-year cycle. The first renewal is special. Before the first renewal, a sales agent must complete Sales Agent Apprentice Education (SAE): an additional 90 qualifying hours, which must include the 30-hour Real Estate Brokerage course (mandatory since October 1, 2023). Combined with the original 180 hours, a first-time renewer has effectively completed 270 hours. SAE cannot be deferred — TREC will not renew the license until it is finished.

Continuing Education for Later Renewals

For the second and every later renewal, the agent completes 18 hours of continuing education (CE) every two years:

Legal Update I and II are mandatory every cycle and are revised to reflect new statutes and TREC rules. A supervising broker must also take the 6-hour Broker Responsibility course as part of (not on top of) the 18 hours. Licensees must notify TREC of changes to mailing address, email, or sponsoring broker, and a license expired more than six months generally forces the applicant to start over.