The Texas Real Estate Commission regulates the real estate industry in the state of Texas (TREC). This association establishes the licensing and ethical standards for real estate professionals in the state. Brokers and salespeople are two of the most popular types of professions in the industry. While both roles are in the same field, there are significant variances between them. In this article, we will look at the distinctions between a broker and a salesman in Texas.
Prerequisites for Licensing
The licensing requirements are one of the most significant distinctions between brokers and salespeople in Texas. A salesperson must complete 180 hours of pre-licensing coursework, pass a licensing exam, and work under the supervision of a qualified broker to become a licensed broker. A broker, on the other hand, must complete 900 hours of schooling, pass a licensure exam, and have at least four years of active experience as a licensed salesman or broker in the prior five years. Brokers must also pass an additional exam that covers brokerage management and law.
In Texas, the duties of a broker and a salesman differ as well. A salesman is primarily responsible for assisting clients in the purchase and sale of real estate. They operate under the supervision of a licensed broker and are not permitted to handle transactions on their own. A broker, on the other hand, has the authority to manage and supervise salespeople as well as run their brokerage firm. They are in charge of reviewing transactions and ensuring that all parties involved comply with state and federal laws.
Another distinction between brokers and salespeople in Texas is how they are paid. Salespeople often earn a commission on each transaction they help with, which is shared between the listing and buyer’s agents. Brokers, on the other hand, can earn a transaction commission as well as a share of the commissions generated by the salespeople they supervise.
Finally, professional development differs between brokers and salespeople in Texas. To keep their license, salespeople must take continuing education classes every two years. Brokers, on the other hand, are obliged to complete 18 hours of continuing education courses every two years, six of which must be broker-specific. Brokers must also ensure that their salespeople meet their continuing education needs.
In conclusion, while brokers and salespeople work in the same business in Texas, their duties and responsibilities are vastly different. Brokers must have greater education and experience than salespeople, and they have the authority to oversee and supervise salespeople. Brokers can also earn a transaction commission as well as a share of the commissions collected by the salespeople they supervise. Salespeople, on the other hand, are primarily responsible for aiding clients with the purchase and sale of real estate and are not authorized to handle any transactions on their own. Knowing these distinctions can help both professionals and consumers navigate the Texas real estate market more efficiently