Buying or selling property can be overwhelming. Because of the size and complexity of the transaction, consumers often hire a real estate broker to navigate the process. The Texas Real Estate Commission (TREC) is responsible for educating, licensing, and enforcing the rules and laws for real estate brokers, sales agents, inspectors, easement or right-of-way agents, and timeshare plans.

Why Are Brokers and Sales Agents Licensed in Texas?

Real estate brokers and sales agents are licensed to protect consumers. To become licensed, each applicant must pass a background check to assess their honesty, trustworthiness, and integrity. Applicants must also complete qualifying education and experience, and pass the licensing exam before they can help guide you through the complicated process of buying or selling property.

Brokers are responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. Sales agents must be sponsored by a broker and work with clients on behalf of the broker.

How Do I Choose a Broker or Sales Agent?

Talk to trusted neighbors, family members, or friends to get recommendations. Interview more than one person you may be interested in hiring and ask them questions about their services and how they would work for you. Online research can also be a valuable aid in helping you decide. 

Use TREC's License Holder Lookup tool to ensure someone holds an active license with TREC. The license holder lookup tool will also provide you information about whether a license holder has received disciplinary action, education they have taken in connection with their license, and, if the person is a sales agent, information about the broker who sponsors them. 

Some sales agents and brokers choose to become members of the Realtor organization, which is a voluntary membership organization. Not all license holders are Realtors, nor are they required to be. 

What Should I Expect From My Broker or Sales Agent?

Brokers and sales agents are required by law to put your interests as their client above all others, including their own interests. This is called acting as a fiduciary. It also involves providing the following minimum services:

• Inform the client of any material information about the property or the transaction received by the broker
• Answer the client’s questions and present any offer to or counter offer from the client
• Treat all parties to a real estate transaction honestly and fairly.

License holders are required to provide certain consumer notices to you. The first time you communicate about a specific property with a license holder, the broker or agent is required to provide you with the Information About Brokerage Services form. This form describes the different ways a professional can represent you, the minimum services they must provide to you and key business names, licenses and contact information for the sales agent, their sponsoring broker, and any delegated supervisor. All license holders must also provide the Consumer Protection Notice.   

What if I Have an Issue With My Sales Agent or Broker?

If you have issues or concerns with the broker or sales agent assisting you, or if you feel you are not being represented fairly, you can file a complaint with TREC. TREC has the authority to take action against a licensed broker or sales agent who is not in compliance with the rules and laws of Texas.

Useful Information About Real Estate Transactions in Texas

Fees Are Not Regulated by TREC

TREC does not regulate the fees paid to any real estate license holder, including buyer’s agents, seller’s agents, brokers, inspectors or appraisers. All fees are set by your agreement with each professional. Before you sign any representation agreement or service agreement, you should carefully review the fees each individual will be charging.

Contract Forms

License holders are required to use contracts and addenda drafted by the Broker-Lawyer Committee and adopted by the Commission. These forms are carefully written to meet the needs of a typical home sale or purchase and to balance the interests of all the parties involved. A broker or sales agent is permitted to complete these form contracts to reflect the needs of their client, but cannot make recommendations or offer advice which exceeds their level of expertise. Complex or specialized situations may require the use of an attorney to express and protect the client’s interest.

Other Professionals Involved in a Real Estate Transaction

In addition to brokers and sales agents, there are other people involved in the buying and selling of a house. Some of these are also licensed by TREC.

Real Estate Inspectors

Real estate inspectors are individuals licensed by TREC to perform inspections of real property that is part of a real estate transaction. Inspectors provide information on the performance of certain systems that are part of the property. They are required to use the TREC standard report form and are guided by their Standards of Practice to ensure consistency throughout the home inspection process. There are three types of inspectors:

• Apprentice Inspector, who must be sponsored and directly supervised;
• Real Estate Inspectors, who must be sponsored and indirectly supervise; and
• Professional Inspectors, who can inspect without sponsorship or supervision  

Appraisers

Whenever a loan is involved with a real estate transaction, the property will need to be appraised. An appraisal is essentially a written estimate of a home or property’s value based on current market conditions. This estimate is determined by a licensed appraiser and is delivered in an official appraisal report. In most cases, the appraisal will be requested by the buyer’s lender because the lender is looking for assurance that the property is sufficient collateral and worth the amount that the borrower has agreed to pay. Appraisers are licensed by the Texas Appraiser Licensing and Certification Board (TALCB), which is an independent subdivision of TREC.

Extra Resources

• Related Regulatory and Consumer Protection Groups
• Consumer Resources