How to Switch Brokerages in Texas: Complete TREC Guide

Thinking about switching brokerages in Texas? You're not alone. Every year, thousands of Texas real estate agents make the move to a new broker sponsor. The process is simpler than most people think.

Can You Switch Brokerages in Texas?

Yes. Texas real estate agents can switch brokerages at any time. There's no waiting period, no penalty, and in most cases, no non-compete that can legally stop you.

Your real estate license belongs to you. Your broker sponsor is simply the licensed broker who supervises your transactions and holds your license with TREC.

The TREC Transfer Process

Switching brokers in Texas involves a simple license transfer through TREC (Texas Real Estate Commission). Here's how it works:

Step 1: Notify Your Current Broker

Give your current broker notice that you're leaving. While Texas doesn't require a specific notice period, professional courtesy suggests at least a few days. Review your Independent Contractor Agreement for any specific terms.

Step 2: Handle Pending Transactions

Any deals you have under contract typically stay with you. However, you'll need to coordinate with your current broker on:

• Transaction files and documentation
• Earnest money held in their trust account
• Any pending commission payments

Step 3: Your New Broker Submits the Transfer

Your new broker sponsor will submit a Salesperson Sponsorship form to TREC. This can be done online through the TREC website. The transfer usually processes within 24-72 hours.

Step 4: Update Your Materials

Once transferred, update your:

• Business cards
• Email signature
• Social media profiles
• Yard signs and marketing materials
• MLS profile

What About Non-Compete Clauses?

Texas courts generally don't enforce non-compete agreements for real estate agents. The Texas Business and Commerce Code has strict requirements for enforceable non-competes, and most brokerage agreements don't meet these standards.

That said, review your specific agreement. Some brokerages include clauses about client lists, pending deals, or marketing materials that may have some enforceability.

Commission on Pending Deals

Here's what typically happens with pending transactions:

• Deals under contract usually transfer with you
• Commission splits are negotiated between brokerages
• Some brokers may claim a referral fee for deals that close after you leave
• Get everything in writing before you switch

Questions to Ask Before Switching

Before you make the move, ask your new brokerage:

1. What are the total fees? (Monthly, transaction, E&O, desk, technology)
2. What support do you actually provide?
3. How accessible is the broker for questions?
4. What's the commission structure?
5. Are there any long-term commitments?

Red Flags When Evaluating New Brokerages

Watch out for:

• Hidden fees that aren't disclosed upfront
• Pressure to sign long-term contracts
• Vague answers about broker availability
• High turnover among agents
• Focus on recruiting over retention

The Bottom Line

Switching brokerages in Texas is straightforward. The process takes a few days, and your business travels with you. The key is doing your homework on the new brokerage before you make the move.

If the math doesn't work at your current brokerage, or the support isn't there, it might be time to explore your options.

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Ready to learn more about flat-fee broker sponsorship in Texas? Apply to RaiderX or contact us with questions.