Chapter 1 of 1530% of exam

TRELA and the Texas Broker Tier

Texas real estate practice is governed by the Texas Real Estate License Act (TRELA, Occupations Code Chapter 1101) and the rules of the Texas Real Estate Commission (TREC). This chapter covers what a broker license authorizes and the broker's duty to supervise sponsored sales agents.

TREC and TRELA

The Texas Real Estate Commission licenses and regulates brokers and sales agents under TRELA (Occupations Code Chapter 1101) and the TREC rules. Anyone who, for compensation, sells, leases, or negotiates real estate for others must be licensed unless an exemption applies. TREC may issue, renew, suspend, or revoke licenses and impose discipline. Texas uses a two-step ladder: a person first holds a sales agent license, then may qualify for the higher broker license.

Supervising Sponsored Sales Agents

A Texas sales agent must be sponsored by a broker and may act only for and in the name of that sponsoring broker. The broker is responsible for supervising the sponsored agents, including their advertising, transactions, and handling of client money. A broker who sponsors agents must have written policies and adequate supervision; failing to supervise is itself a ground for discipline. This supervisory responsibility is a core reason broker candidates are tested more heavily than sales agents.

Broker Qualification and Experience

To obtain a Texas broker license, a candidate must have held an active license and gained qualifying experience (measured in points from transactions) plus additional qualifying education beyond the sales agent requirement. Because the national portion may be waived for holders of a current national exam credential, some candidates take only the state portion. Licensees must complete continuing education to renew.

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