Whats the deal with the "Referral" type Brokerages?

Has business slowed down and are you looking for a lower cost way to keep your license active? Maybe you have heard of the referral brokerages, that hold your license in an referral state only. There are many of them. That may be your best option if you have no desire to practice real estate. The license is not, inactive status, but the licensee cannot perform any activities that require an active real estate license (no listings, showings, negotiations, etc.)

• They can only receive referral fees for referring clients to other active agents

• The license must still be held by a licensed broker

• They must still complete continuing education requirements to renew their license

• They still pay renewal fees to the California Department of Real Estate (DRE)

The difference with MLS Only status, is you can still practice real estate. You may act as an agent for a buyer or seller. You may also receive referral fees. Basically everything the typical franchise brokers offer, you just are not a "Realtor".

So which option is better? Depends on your plans. If planning to do nothing, perhaps referral status is better. That means no MLS membership option. If you do plan to continue in real estate, choose MLS Only.