Ontario real estate Brokers who own and operate their own Brokerage Firm may have registered agents with them that are not active or non producers, but these agents are still accumulating day to day expenses. They could be Brokers, Associate Brokers, or sales representatives, including real estate agent teams, and even husband and wife teams or partners alike.


There are many various reasons why agents come into the Brokerage business and then for good reason, do not become active in the day to day expected activities including sales that are expected from them. Some reasons may be as simple as agents having a change of heart due to disliking sales since it was not what they imagined it would be. Maybe an experience like having one of their own family members choose a real estate agent other than them to list and sell their house. Frustration like this is often severe enough to cause agents to quit the business.


Other reasons may be because of a change in their circumstances. Deciding to go part-time instead of full-time, pregnancy leave, another career opportunity, husband and wife teams where the wife is really a stay at home mom, taking time off due to sickness whether personal or family, already have a full-time job and their real estate license is really for future use, taking a sabbatical or 2 and deciding to back to school, etc. etc.


Most, if not all these reasons are valid enough to deter the agent from the high costs of operating. How could they avoid it though? If their Brokerage is a member of the local real estate board then each registered agent must be as well. This means high board fees and Association dues, like O.R.E.A. and C.R.E.A., aka, the Ontario Real Estate Association and the Canadian Real Estate Association. In addition, there may be franchise fees, “desk fees”, monthly fees, advertising costs, stationary expenses and the like.


Real estate Brokers and and Brokerages now have an option for these non active, non producing agents. A popular option is to refer these inactive agents to a real estate brokerage firm in Ontario that is not a member of any Ontario real estate board and who provide the service of accepting inactive agents as registrants in their Brokerage and holding their license. The Brokerage referring these agents to the latter are considered to be the Brokerage of Origin.


The Brokerage of Origin sometimes may benefit from such an arrangement since the agents being transferred may refer business back to them if the occasion ever arises. I addition, these transferring non active agents have the option to return to the Brokerage of Origin if and when they decided to become active again. Therefore, the Broker Owners of these Ontario Realty Brokerages can now help by recommending their non producing agents the option to “park their license”, and save on unnecessary expenses.


Keeping their real estate license active and doing so at a much reduced expense is the key here. These inactive agents can park their realty license and hold it active with a non member Brokerage for a very low holding or parking fee but they must also inquire about some other issues beforehand. They should inquire about their share or commission split on referrals to other Brokerages and what the total expenses to park their license would be.

Non active real estate agents in Ontario feel the financial pressure released as they decided to hold their license active by parking their license with a non board member Brokerage. Their Brokerage of Origin also feels relieved and no longer have to concern themselves with unpaid expenses by their inactive agents.

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