Inactive or Active – Why You Can Still Park Your Ontario Real Estate License Either Way
Thursday Jun 15th, 2017
Let's pause for a minute and take a brief moment before discussing the differences between an active and inactive agent, and instead we'll start off with a quick summary of the way the Brokerage system in Ontario operates when it comes to real estate. Let's avoid overcomplicating things and so we'll keep the explanation below simple.
Trading in real estate in Ontario requires a Brokerage to be signed up with the Real Estate Council of Ontario (R.E.C.O) - in addition to keeping up with and making sure any of the associated expenses, such as the errors and omissions insurance are paid for. Once that is done, the Owner/Broker can either choose to trade in real estate alone or can also have any licensed agents that wish to join their firm, do so, and as a result be able too trade within the industry as well.
If an Ontario Brokerage is a member - after applying and being accepted by its local real estate board - there are certain board fees and dues that the Brokerage has to pay out, such as those pertaining to O.R.E.A. and C.R.E.A. - which are the abbreviated forms for Ontario Real Estate Association and Canadian Real Estate Association respectively. All agents within that Brokerage are then also responsible for becoming a member and paying these fees. Although in much more rare cases, sometimes the Brokerage may decide to cover these costs for selected real estate agents. Board members are given access to the M.L.S. (Multiple Listing Service), in addition to other services, which have proven to be very valuable resources.
An agent registered with R.E.C.O., that for whatever reason, no longer actively trades in real estate is considered inactive. Staying with their Brokerage that is a board member probably means their still paying expenses such as monthly Brokerage, desk, and franchise fees, among others. As a result of this, the agent that is no longer active may start seeking out another Brokerage to hold their real estate license, and in doing so, save money on wasted expenses in the process. Although there are still fees for a parked agent to pay, the difference would be saving them hundreds, possibly even thousands on a yearly basis, making the transition very much worth it. Some fees, such as those pertaining to R.E.C.O., including the errors and omissions insurance, license registration expenses every two years, and the required 24 credits for continued education are expected to be paid for on their respective due dates with regards to renewal.
Inquiry about keeping your real estate license active using the form below:
What should you look for when seeking out a real estate Brokerage that will park your license? One that's proven, trustworthy, and isn't a part of any real estate board. Inquiry about the highest available commission split in the event you potentially sell one or more propertie(s), or having yourself referring business to agents or Brokerages you might know. Your real estate license is still active, even though you may be inactive while your license is on hold. Don't get caught in paying any ridiculous or unnecessary expenses. Sure, there may be a membership fee, but compared to what you would be spending, it's comparatively very small. While shopping for the Brokerage of your choice to warehouse your license, keep in mind that the experienced Brokerage is what you may want to consider.
So even if you haven't done anything related to the industry for some time (considered "inactive"), as long as your real estate license is in good terms with R.E.C.O. , it's still "active". That said though, if you find yourself inactive for whatever reason, you don't have to worry about your license lapsing or possibly even being terminated. By joining an Ontario Brokerage that will warehouse your license, not only are you keeping it active, but you are also saving a ton of money.
It really does make me quite nervous thinking about losing my Realtor license and having to go all the way back to the beginning to get it again. You put time, energy, and money in obtaining this valuable asset, so if you feel like your not in that "real estate state of mind" at this time, consider keeping it active by parking it with a real estate license holding company. Best of luck to you!