Saturday, September 10, 2016

An Understanding On How To Park Real Estate License

By Martha Edwards


If ever you want to go on a travel, go to school, or will be leaving the business temporarily for maternity leaves, retirements or any other reasons, you may not surrender your real estate license. You can just register it to a non board member brokerage of real estate board associations. Parking sometimes is called as warehousing or shelving. Even you do not have with you your license, you are still fully registered with the council.

When doing this, there is no need for you to pay for any fees like high brokerage fees that are related to the board associations. Another advantage for park real estate license Ontario is you may still trade through referrals. And by parking, you can maintain your educational or work requirements and you can earn referral fees.

There are a lot of reasons why should park your license in Ontario. One reason is to reduce your fees. An example for this is if you and your mate are working in the same brokerage. Another is if someone is new to a business and does not have ideas yet, a position for administrator or assistant can be of help in adapting the new environment.

Another reason is if you are not yet ready for business and already have obtained the license. And lastly, when you have decided to move on to another place or country, and if you are not sure to come back. The time of license parking is unlimited, but just be sure to pay your fees and maintain your requirements.

If there are instances that it expires for less than two years, it will be parked still, but a reinstatement is needed. But if it lapses for two years or more, you must begin to start registering and taking the courses. It is recommended that you park it right away if ever still unsure of your decision to continue the business or not.

If it is already parked, you cannot be involved in any transaction. You cannot sell a home to your friends, families, or some of your past clients. All you can do is to refer them to sales representatives and earn a referral fee from them. You must refer them to someone whom you could trust to take care of them.

Your buyer or seller will not pay you for giving them the best person whom they can work with, but instead, the brokerage will pay you for your referral commission. Always make sure that your buyer or seller knows that they are not your client but they are the client of the brokerage. And make sure that both parties have signed a referral agreement to avoid problems when it comes to referral amounts.

Referral amounts can be discussed between the sales representatives and the broker. Usually, the amount ranges from 25 percent to 50 percent of the commission. There might be some people who might ask if they can do open houses, like working as an assistant to another brokerage.

Working with another broker is never allowed, because you can only be paid by the broker whom you registered to. This is a very important rule by brokers. This means that you will be paid only, as well as the sales representative when you are working with the same brokerage.




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