Real Estate Broker Sponsorship in Texas: What It Means and How to Find the Right Fit
If you're a newly licensed real estate agent in Texas—or thinking about getting your license—you've probably heard the term "broker sponsorship." But what does it actually mean, and why does it matter?
In Texas, you can't practice real estate without being sponsored by a licensed broker. This requirement exists to protect consumers and ensure new agents have oversight and guidance. But not all sponsorships are created equal, and choosing the right broker sponsor can make or break your real estate career.
What Is Broker Sponsorship?
Broker sponsorship is the formal relationship between a licensed real estate sales agent and a licensed real estate broker. In Texas, TREC (Texas Real Estate Commission) requires every active sales agent to be sponsored by a broker.
Think of it this way: your real estate license gives you the knowledge to practice real estate, but broker sponsorship gives you the authority to actually do it.
Your sponsoring broker: - Holds legal responsibility for your transactions - Provides required supervision and oversight - Maintains your license status with TREC - Offers varying levels of support, training, and resources
Types of Broker Sponsorship Models
Traditional Split Model
The most common arrangement, especially at large franchises. You split your commission with the brokerage—typically 60/40 to 80/20 in your favor.
Pros: - Often includes training and mentorship - Marketing and lead generation support - Brand recognition
Cons: - Significant chunk of every commission goes to the brokerage - May have additional fees (desk fees, technology fees, transaction fees) - Less autonomy
100% Commission Model
You keep 100% of your commission and pay a flat fee per transaction or monthly fee instead.
Pros: - Keep more of what you earn - Predictable costs - More autonomy and flexibility
Cons: - Less hand-holding (may not suit brand-new agents) - Must be self-motivated - May need to source your own tools/resources
Hybrid Models
Some brokerages blend approaches—lower splits with lower fees, or tiered structures based on production.
How to Find Broker Sponsorship in Texas
Step 1: Know What You Need
Be honest with yourself about your experience level and what support you require:
- New agents: You probably need training, mentorship, and structure. A traditional brokerage with a strong training program might be worth the lower split initially.
- Experienced agents: If you know what you're doing, why give away 20-40% of every deal? A 100% commission model likely makes more sense.
- Team leaders: Look for brokerages with team-friendly structures and the ability to grow your own brand.
Step 2: Research Brokerages in Your Market
Look for brokerages in the areas you want to work. Consider:
- Local independent brokerages
- National franchises (Keller Williams, RE/MAX, Coldwell Banker, etc.)
- Cloud-based/virtual brokerages
- 100% commission brokerages like RaiderX
Step 3: Interview Multiple Brokers
Don't just take the first offer. Ask pointed questions:
- What's the true total cost (splits + fees)?
- What training and support do you provide?
- How accessible is the broker for questions?
- What technology and tools are included?
- What's your E&O insurance situation?
- Can I speak with current agents?
Step 4: Read the Independent Contractor Agreement
Before signing anything, read every word of the ICA. Understand:
- Commission structure and all fees
- Notice requirements to leave
- How pending transactions are handled if you leave
- Any non-compete language (generally unenforceable in Texas, but know what's there)
Step 5: Submit Your Sponsorship to TREC
Once you've chosen a broker, they'll submit a sponsorship request through TREC's online system. You'll need to accept the sponsorship, and once processed, you're official.
What to Look for in a Broker Sponsor
For Brand-New Agents
- Comprehensive training program
- Assigned mentor or buddy system
- Regular office hours with accessible broker
- Transaction support staff
- Reasonable fees while you build your business
For Experienced Agents
- Maximum commission retention
- Minimal bureaucracy and fees
- Quality E&O coverage
- Responsive broker when you have questions
- Freedom to run your business your way
For All Agents
- Financial stability of the brokerage
- Transparent fee structure
- Good reputation in the market
- Technology that makes your job easier
- Culture that aligns with your values
Red Flags to Avoid
- Hidden fees not disclosed upfront
- Unrealistic promises about leads or income
- High-pressure sales tactics to sign immediately
- Negative reviews from former agents
- Lack of transparency about costs
- Broker is never available when agents need help
The RaiderX Approach to Broker Sponsorship
At RaiderX, we built our brokerage for experienced agents who know what they're doing and don't want to give away their hard-earned commissions.
Our model: - 100% commission—you keep every dollar you earn - Simple flat fee per transaction - No monthly fees, no desk fees, no hidden costs - Full broker support when you need it - Modern technology included - E&O coverage handled
We're not the right fit for everyone. If you're brand new and need hand-holding, you might want to start elsewhere and come back when you're ready. But if you're an established agent tired of paying splits, we'd love to talk.
Apply to join RaiderX | Learn more about our pricing
Frequently Asked Questions
Can I be sponsored by multiple brokers in Texas? No. TREC only allows one active sponsoring broker at a time.
How long does it take to get sponsored? Once your broker submits the sponsorship request and you accept it, TREC typically processes it within 1-3 business days.
What happens if my broker goes out of business? Your license becomes inactive. You'll need to find a new sponsor to reactivate.
Can I switch brokers? Yes. You'll need to follow the terms of your ICA (usually 30 days notice) and have your new broker submit a sponsorship request. Your old broker will be notified to release you.
Questions about broker sponsorship in Texas? Contact us—we're happy to help, even if you don't end up joining RaiderX.