The Principles of Real Estate II: Building on the Foundation of Your Texas Real Estate Career
Once you’ve completed Principles of Real Estate I, you’re halfway through the foundational learning that every future Texas real estate agent needs. The next logical step?
Principles of Real Estate II—a 30-hour course that dives deeper into the real-world skills, systems, and practices that agents use every day.
If Principles I introduces you to the real estate world, then Principles II helps you navigate it more confidently.
Principles of Real Estate II is one of six mandatory pre-licensing courses required by the Texas Real Estate Commission (TREC). It’s a 30-hour course focused on expanding your knowledge from abstract principles to practical applications—the kind you’ll use once you’re licensed and active in the field.
This course blends theory with action. You’ll learn how real estate really operates: from how to use the MLS and read market data to understanding appraisals and closing procedures.
The topics in this course are designed to prepare you for the day-to-day mechanics of being an agent in the Texas real estate market. Core modules typically include:
Purpose and methods of valuation
Principles affecting value (e.g., supply and demand, substitution)
The appraisal process
Residential vs. commercial sales
Property management
Investment real estate
Real estate development
Property taxes
Commissions
Loan calculations
Prorations
The escrow process
Title insurance
Closing statements and forms (HUD-1, Closing Disclosure)
Understanding settlement and funding
Trends and demographics
Market analysis (CMA vs. appraisal)
Using the MLS system
Fair housing laws
Professional behavior
Protecting consumer interests
Real-world case studies and ethics scenarios
This course brings together real estate theory, business practices, and legal context in a way that equips you for both the exam—and your future work with clients.
Principles of Real Estate II is your bridge between the classroom and the marketplace.
Here’s why it’s so important:
It strengthens your problem-solving skills with real examples.
It teaches you to communicate value confidently to clients.
It prepares you to handle deals with more precision and professionalism.
It gives you a strong base for more advanced courses like Real Estate Finance or Promulgated Contracts.
In short, it prepares you to do the job—not just pass the test.
Brush up on real estate math. There’s more of it in this course, and it will show up on the exam.
Study appraisal concepts closely. Understanding value is key to advising buyers and sellers.
Take the ethics sections seriously. These scenarios mirror real challenges you’ll face in the field.
Look for local examples. Try to connect the lessons to your specific market—whether it’s Austin, Houston, or Lubbock.
Once you’ve completed Principles I and II, you’re on your way. The remaining pre-licensing courses are:
Law of Agency
Law of Contracts
Promulgated Contract Forms
Real Estate Finance
Together, these make up the 180 hours of education required to sit for the Texas Real Estate License Exam.
Principles of Real Estate II isn’t just another checkbox on your path to a license—it’s your introduction to thinking, acting, and serving like a real estate professional. It moves you closer to understanding not just what real estate is, but how to thrive within it.
Whether you plan to specialize in residential sales in San Antonio or commercial leases in Dallas, this course will help you step into your new career with greater clarity, confidence, and competence.
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