What is a Sponsoring Broker?

If you're in the process of getting your Texas real estate license, you've probably heard the term "sponsoring broker" before. In this post, we'll break down what sponsoring brokers are and what responsibilities they have.
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If you’re in the process of getting your Texas real estate license, you’ve probably heard the words “sponsoring broker” before. In this post, we’ll break down what a sponsoring broker is, what their responsibilities are, and how you can become one (if you so feel inclined).

What is a sponsoring broker?

A sponsoring broker is an agent with their employing broker’s license. They are responsible for guiding you through your first years as an agent as well as providing other business, marketing, and brand benefits. You need a sponsoring broker in order to activate your license.

What are their responsibilities?

A sponsoring broker will have had years of experience and will have taken additional coursework and tests to prove their knowledge of real estate laws and practices. Brokerages provide a whole slew of benefits for the agent, including mentorship, marketing, legal protection, and name and brand recognition. In return for these services, the brokerages expect to receive a large portion of the commission.

Feeling overwhelmed navigating the world of sponsoring brokers? AceableAgent includes a "broker matching" program to help pair you with the best broker for your wants and needs!

How is the cost broken down?

There are two primary fee structures that sponsoring brokers use:

  1. Flat Fee: You pay your broker a flat amount every month.
  2. Commission Split: This option really varies from broker to broker, but the most popular split is 70-30, meaning that 70 percent of the sale will go to you, and 30 percent will go to your sponsoring broker.

How do I become a sponsoring broker in Texas?

To become a real estate broker in Texas, you must meet the following requirements:

  • Citizen of the United States or lawfully admitted alien
  • 18 years of age or older
  • Resident of Texas (exceptions: if you were licensed in Texas as a sales agent or broker in the last two years or if you are licensed as a broker in another state)
  • Meet Texas Real Estate Commission’s qualifications for honesty, trustworthiness, and integrity (if you’re unsure what this means, request a Moral Character Determination before going through with the application process)

Education

If you fulfill the above requirements, you will also need to take 270 classroom hours of qualifying real estate courses, which include:

  1. Principles of Real Estate I
  2. Principles of Real Estate II
  3. Law of Agency
  4. Law of Contracts
  5. Promulgated Contract Forms
  6. Real Estate Finance
  7. Real Estate Brokerage - must be completed no more than two years before the application date.

You are also required to take an additional 630 classroom hours in related qualifying courses acceptable to the Commission or approved Continuing Education (CE) courses.

What if I have a college degree?

If you have a bachelor's degree or higher from an accredited college or university, you do not need to take the additional 630 class hours in additional related education courses. Instead, submit a copy of your college transcript. All evidence of course completion must be submitted to the Texas Real Estate Commission after applying online or with your paper application.

Experience

You will also be required to have the following experience:

  • At least four years of active experience as a licensed real estate sales agent or broker (this must be during the preceding 60-month period to filing your application)
  • 3600 points in total experience. These must be reported to the Qualifying Experience Report for a Broker License. Please include a transaction identification list for each transaction claimed on the experience report.

Once you have completed the above requirements, you can file an application online, get your fingerprints taken, and then take (and pass!) your exam. Please note that you have one year from the date your application is on file to meet all requirements.