Get a Real Estate Broker License – Simple Definition

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What is a real estate broker license?

A rising number of real estate agents have opted to take greater control of their businesses by earning a real estate broker’s license. A licensed broker is authorized to handle the legal complications of purchasing and selling real estate. Additionally, licensed real estate brokers can determine their commission rates and recruit real estate salespeople, or agents, to supervise the sales process. A licensed broker collects commissions from a real estate transaction and pays his agents by sharing the commissions.


A real estate broker is a person who operates as a middleman between buyers and sellers of real estate. After years of experience, a real estate salesperson may opt to become a licensed broker, allowing her to own, run, and manage her own real estate company. In contrast, after obtaining a real estate broker’s license, an agent may opt to continue working as a salesman under another firm, becoming an associate broker. The associate broker often gets a more significant share of the commission split than a salesperson under this arrangement.


While a real estate salesperson may undertake real estate professional activities, he must be sponsored by a qualified real estate broker. A licensed real estate broker may operate on his or her own and represent himself or herself. Listings must be in the name of a professional real estate broker rather than a salesperson. Real estate brokers and salespeople work as agents for the principals of a real estate transaction, the seller and buyer. Real estate contracts are often filled up by a professional real estate agent; nonetheless, the principal must sign them. A real estate broker’s license precludes the agent from providing legal, financing, or title search services. However, in order to expedite a closing, an agent often organizes these services with the required professionals.

The Requirements for a Texas Real Estate Broker License

The Prerequisites for Obtaining a Texas Real Estate Broker License

To take a broker’s licensing test, you must meet the following conditions.

  • You must be a US citizen or a properly admitted immigrant.
  • You must be at least 18 years old.
  • You were licensed as a sales agent or broker in Texas during the previous two years, or you are a licensed broker in another state.
  • Honesty, trustworthiness, and integrity are required by the Texas Real Estate Commission (TREC).
  • Before applying for the license, consider seeking a Moral Character Determination.

Can you earn money without employment if you have a real estate broker’s license?

In most US states, a Broker is someone who owns a brokerage and employs real estate agents. A real estate salesperson (agent) works for a Broker and is paid by the Broker in the states where I am licensed (Delaware and Pennsylvania), thus the Broker may be paid commission directly on a transaction, but a Salesperson cannot. This necessitates being in charge of people who work for a Broker.

Some choose to operate alone, while others become Salaried Brokers of Record for huge Real Estate businesses. Those with a Real Estate Brokers license have several alternatives.

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How different is the real estate broker licensing exam from the sales?

A salesman’s license requires some study, maybe 20-30 hours of training depending on your state, and passing a reasonably simple exam at the end if you’ve been paying attention.

Each real estate transaction is unique and has its own set of concerns and issues. There is no such thing as an easy one. There is just no one who knows all of the answers.

But you emerge out the other side with a Broker License and the feeling that you should know everything. It does keep you focused on the company and gives insight into problem-solving that you would not have had otherwise.

What business with real estate can be started online without a broker license?

There are three primary areas you might examine that don’t need a broker license: lead generation, software, and services.

Lead Generation: this is by far the largest category and presently the most valuable. There are many, many participants in the lead-generating game but the largest player is probably Zillow. Most people (consumers) don’t aware that Zillow generates money by sending leads to real estate brokers from the tens of millions of users on their site every month. There are hundreds of little organizations that utilize search engine marketing to create leads they then hand along to agents for a charge. Weichert, a large brokerage across the US, has its own section that does nothing but creates leads, qualify them, and deliver them to their brokers for a charge.

Software: this is the second most profitable road to success in real estate tech that doesn’t need a license. Agents use anything from CRMs to single property websites to full-blown versions of Zillow branded especially for them. There are additional software businesses that supply the backbone of the MLS system and those that offer transaction management software, notably Dotloop (bought by Zillow) and Cartavi (acquired by DocuSign) (acquired by DocuSign).

Services: this is the third most profitable route. There are numerous degrees of services that firms supply that help drive some of the experiences you find on sites like Zillow. Companies like ListHub function as data brokers giving unified access to real estate listings.


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