How to Switch Brokerages in Texas: A No-BS Guide
The Short Version
You can switch brokerages in Texas at any time—there's no "contract jail." TREC requires your sponsoring broker to release your license upon written request. The process takes 5-10 business days. The harder part? Knowing whether you're switching to something better or just... different.
What TREC Actually Requires
Let's cut through the myths. Here's what Texas law says:
Your broker must release your license within 10 days of written request. That's it. They can't hold you hostage. They can't charge you an "exit fee" that wasn't in your original ICA. They can't threaten your pending deals.
The process: 1. Submit written termination to your current broker 2. Your broker has 10 days to release your license 3. Your new broker submits a sponsorship request to TREC 4. TREC processes the transfer (usually 3-5 business days) 5. You're active under your new broker
Total timeline: 5-10 business days if everyone does their job.
What About Pending Transactions?
This is where agents freeze up. Here's the reality:
Your pending deals belong to your current brokerage, not you personally. When you switch, you have three options:
- Complete deals before switching - Clean, simple, but not always practical
- Negotiate a referral fee - Many brokerages will pay 25% referral for deals you bring in progress
- Hand off to another agent - Works if you trust someone at the old brokerage
The dirty secret? Most brokerages would rather pay you a referral than deal with unhappy agents dragging deals across the finish line. Negotiate.
The Math Most Agents Don't Run
Before you switch, run these numbers. Seriously—get a calculator.
Scenario: You closed $3M last year
Traditional 70/30 Split: - GCI: $90,000 (assuming 3% avg commission) - Your take: $63,000 - Brokerage take: $27,000
Flat-Fee Model (like RaiderX at $99/month): - GCI: $90,000 - Your take: $88,812 ($90K - $1,188 annual fees) - Savings: $25,812/year
The breakeven point: At just $99/month, flat-fee wins almost immediately. Below that, the math gets murkier—but you should be asking why you're below $800K, not which split is better.
Hidden Costs to Factor In
Your current brokerage might include: - E&O insurance (RaiderX: included) - MLS fees (varies—often $400-800/year) - Tech stack (CRM, transaction management) - Marketing materials - Office space (if you use it)
Run the total cost comparison, not just the split. A "90/10 split" with $500/month in fees and $200/month desk fee is really more like 75/25.
Red Flags When Evaluating a New Brokerage
🚩 They lead with the split, not the support
If the first thing out of their mouth is "we offer 85/15!"—ask what you get for that 15%. Vague answers like "training and support" aren't good enough.
🚩 Complicated fee structures
Monthly fees, transaction fees, franchise fees, technology fees, E&O fees, annual fees... If you need a spreadsheet to understand your costs, that's intentional.
🚩 Pressure to sign quickly
"This offer expires Friday" is a sales tactic, not a business decision. Any brokerage worth joining will give you time to think.
🚩 They trash-talk your current brokerage
Professionals don't need to tear down others to build themselves up.
🚩 No clear answer on support
Ask: "When I have a contract question at 9pm, who do I call?" If the answer is unclear, you're on your own.
Green Flags Worth Paying For
✅ Transparent, simple pricing
You should understand your costs in one sentence.
✅ Responsive broker support
Test it before you join. Email a question and see how fast they respond.
✅ Modern tech included
Transaction management, e-signatures, CRM basics. You shouldn't pay extra for table stakes.
✅ No production requirements
Some brokerages have minimum transaction requirements to maintain your split. Make sure you know what they are.
✅ They let you talk to current agents
If they won't connect you with other agents at the brokerage, ask why.
The Switch Checklist
Ready to move? Here's your action plan:
Before you give notice: - [ ] Calculate total cost at new brokerage (all fees) - [ ] Confirm E&O coverage and transition - [ ] Understand what happens to pending deals - [ ] Get everything in writing from the new brokerage - [ ] Talk to at least 2 agents already there
When you give notice: - [ ] Submit written termination (email is fine, keep a copy) - [ ] Note the date—broker has 10 days - [ ] Don't burn bridges—you'll see these people again
After the switch: - [ ] Confirm your license is active on TREC's site - [ ] Update your business cards, email signature, and online profiles - [ ] Notify your sphere and active clients - [ ] Set up any new systems (transaction management, etc.)
Bottom Line
- You can switch anytime. TREC mandates license release within 10 days.
- Run the math. Don't switch for a "better split" without calculating total cost.
- Pending deals are negotiable. Push for referral fees.
- Watch for red flags. Complicated fee structures and pressure tactics are warnings.
- The best brokerage is the one that helps you close more deals, not the one with the flashiest recruiting pitch.
Switching brokerages won't fix a broken business. But staying at the wrong brokerage because you're afraid of change? That'll definitely hold you back.