© 2018 by REFERRAL ESTATE        TREC LICENSE # 9004386 

Tel: 972.532.6336  info@referralestate.com

 

6815 Windhaven Pkwy, The Colony, TX 75056

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Referral Estate is a Limited Function Referral Office (LFRO) Brokerage Firm, owned and operated by a TREC Broker licensee, which is exclusively engaged in referring clients and customers to other brokerage companies engaged in listing and selling real property. Our agents do not provide real estate services of any kind; THEY REFER ONLY.

As a referral agent, submit the client referral through our system and an experienced advisor will be assigned to help your prospect. The brokerage does all the work and you will receive your referral commission check when the transaction closes.

FAQ

frequently asked questions

Q. What is a Limited Function Referral Office ( LFRO)

A Limited Function Referral (LFRO) is a real estate brokerage firm, owned and operated by a Texas Real Estate Broker licensee, which is solely engaged in referring clients or customers to other Brokerage companies engaged in listing and selling real property.

 

Q. What is a LFRO Brokerage Agent?

Referral Estate is a Limited Function Referral Office (LFRO) Brokerage. Our agents do not provide real estate services of any kind; they refer only.

Why is this important?

Agents can only receive compensation through their sponsoring broker. As far as the state is concerned, LFRO agents are active agents sponsored by a Texas broker. As an active licensee the LFRO agent is eligible to be paid a referral fee through their LFRO Broker. What limits the agents’ activities is the Independent Contractor Agreement between the licensee and the broker. This agreement specifically limits the agents’ actions to generating referrals.

 

Q. Who are good candidates to become referral agents?

  1. New licensees who haven’t yet saved the ‘cushion they need to become a full-time REALTOR®

  2. Agents taking a break from full-time real estate demands and expense

  3. Investors

  4. Licensees currently employed in another, or even a related, industry who would benefit from another stream of income

  5. Licensed real estate retires looking for a flexible income source

 

Q. How much can I earn?

Your earning potential is unlimited! You will earn a percentage of every commission we collect resulting from the qualified referrals you provide. The more qualified referrals you provide that result in closed deals, the more you earn.

 

Q. What is a qualified referral?

A qualified referral is a prospect you have personally referred to Referral Estate.  They could be family, friends, co-workers, neighbors or acquaintances. Whomever they are, they must contact us directly, or give us authorization for to contact them regarding listing or buying real property through the referral process. To avoid any misunderstanding, Referral Estate must pre-approve a lead as “qualified” for the referral agent to be eligible for a fee. The quality of your referrals will insure success for you, for Referral Estate and for the Referral Brokers in our network.

 

Q. What kind of ‘Referral Associate’ is more likely to make the most money?

The referral agent most likely to succeed is one who learns to identify a viable prospect quickly. A simple ‘lead’ is someone who is just thinking about buying or selling. A prospect that has a sense of urgency to buy or sell would be considered qualified referral.
Successful agents pay attention to the dynamics of the ‘chain of events’ surrounding real estate transactions. Look for the potential of earning two-sided referral fees. Many sellers are also buyers. Many buyers are also sellers.

And remember the first rule of sales: ASK FOR THE ORDER!

 

Q. Can I promote myself as a “referring agent”?

Absolutely! You can even still refer to yourself as a Real Estate Agent since you are one.

Q. Do you suggest that I have business cards to promote myself?

Certainly! Market as much as possible.

 

Q. What do I say to a potential buyer or seller?

Casual conversation often opens the door to a more substantive conversation about real estate needs. Naturally you’ll want to determine the prospect’s sense of urgency. If they plan to buy or sell real estate explain that you are an “Independent Referral Agent” with Referral Estate, a company which exclusively refers potential buyers and sellers of real property to qualified full-time Sales Associates. Get the prospect’s authorization for contact by our referral staff. Complete the Referral Contact Form and submit it. We’ll do the rest!
Remember, if they are planning to sell their home – they probably will be looking to buy a home. If they are planning to buy a home – they may need to sell a home. There are many opportunities to get two referrals from one contact.

 

Q. Can I list houses or act as a Buyer’s Agent?

No. As a Limited Function Referral Only Agent you cannot provide any brokerage services. If you would like to change REALTOR® status, you may join our traditional, full service brokerage company, Ohlig Group Realty. To learn more, go to www.ohliggroup.com and click on the “become an agent” link.
 

Q. My License is inactive. What do I have to do to return to active status as an Referral Estate licensee?

A salesperson whose license is inactive who returns to active status, must complete MCE hours only if MCE hours had been required for the last renewal had the license been on active status. To return to active status, the licensee must complete the MCE hours during the two years prior to filing the reactivation form. To return to active status a salesperson must file a Salesperson Sponsorship Form through an active broker.

A salesperson on inactive status as of January 1, 2005 who wishes to return to active status, and who is not subject to annual education requirements, must take a three hour legal update course and a three hour legal ethics course created for and approved by TREC to satisfy the six legal hours of mandatory continuing education required by Occupations Code §1101.455 if the salesperson did not meet the previous MCE requirements prior to January 1, 2005.

A salesperson on inactive status as a result of filing late MCE pursuant to Section 535.92(f) of the Commission rules effective for renewals on or after June 30, 2008 must complete required MCE hours; pay the deferral fee of $200 AND the $250 penalty fee (total $450); and submit a Salesperson Sponsorship form and $20 fee.

Go on to the 3 Steps to Renewing Your License.

 

Q. My license is expired. What do I have to do to return to active status?

 

          General MCE requirement for late renewal:

A late renewal applicant for a salesperson license, who is not subject to annual education requirements, must take a three hour legal update course and a three hour legal ethics course created for and approved by TREC to satisfy the six legal hours of mandatory continuing education required by Occupations Code §1101.455 if the applicant did not meet the previous MCE requirements prior to January 1, 2005.

 

           Expired 6 months or less:

A salesperson whose license has been expired not more than 6 months, who files an application to renew that license on active status must complete the MCE hours within the two year period prior to filing the RENEWAL OF REAL ESTATE LICENSE – TIMELY OR EXPIRED LESS THAN SIX MONTHS application. If the hours have not been completed when the renewal form is filed, the license will be renewed on an inactive status. To return to active status, see Inactive Salesperson Licenses (on this page above).

            For an INACTIVE renewal of a license that has been expired 6 months or less:

A licensee may file a late renewal application and renew a license on INACTIVE status without a lapse in INACTIVE licensure and without submitting MCE. A licensee cannot engage in real estate activity with an inactive license. If the licensee returns to active status and the previous application to renew was filed more than 60 days but less than 6 months after the license expired, the fees noted in the paragraph below will be required.

 

            Expired 6 months but less than 2 years: 

A salesperson whose license has been expired more than 6 months but less than 2 years, who files an application to reinstate that license on active status, must complete the 15 hours in MCE during the two year period prior to filing the Application for Reinstatement of a Salesperson License or Broker license by an individual If the license was active and the MCE hours were not completed by the license expiration date and the license is being renewed active or inactive within six months, the licensee must complete the hours and pay the deferral fee of $200. If the hours are completed after 60 days of the license expiration date the $250 penalty fee applies (total $450). If the hours are not completed or the late MCE fees paid, the license will be renewed on an inactive status. To return to active status, see Inactive Salesperson Licenses (on this page, above).

 

Please Note: If a broker’s license expires or is placed on inactive status, all salespeople sponsored by that broker will be placed on inactive status.

 

Expired more than 2 years

A salesperson whose license has been expired more than 2 years, must reapply for licensure. The applicant must meet salesperson application requirements (including education), file an original Application for Inactive Salesperson License and pass the salesperson licensing exam.


If not required to reapply (as determined above), go on to the 3 Steps to Renewing Your License.

 

Q. As a Referral Estate agent do I have to pay local, state and national annual dues?

NO

 

Q. Do I have to subscribe to MLS?

NO

 

Q. Do I have to pay any monthly fees to Referral Estate?

NO

 

Q. What is the cost to ‘hang’ my license with Referral Estate?

$100 annual fee and a $20 Fee to transfer license from TREC.

 

Q. How does it work?

You submit a qualified referral lead. Referral Estate will assign your lead to an active agent or to an agent of your choice anywhere. When the sale closes, you earn a percentage of the referral fee we are paid by the co-operating broker.

Example of the referral process:

 

  1. Referral Estate licensee (you) refers a buyer/seller prospect to Referral Estate (us)

  2. Referral Estate (us) negotiates a referral fee of earned commission with a licensed Brokerage

  3. Referral Estate (us) refers the prospect to the Brokerage company

  4. The Brokerage agrees to a referral fee of 25% of  X % of the sales price

  5. Referral Estate tracks the transaction

  6. Upon closing, Referral Estate receives the agreed upon referral fee

  7. The referral agent is paid 80% of the gross amount received by Referral Estate

 

EXAMPLE:

Referral fee paid to Referral Estate is $2,250

Referral Agent split 80%x $2,250  = $1,800

Referral Estate split 20% x $2,250  = $450

 

Q. How do I get paid?

Upon close of escrow with your referral’s transaction, a check will be mailed to the address you provide. Referral Estate will provide you with a 1099 at year end as well; no taxes will be deducted. The Referral Fee is off the top of the total commission on the referred side.

 

Q. I’m going to sell my home. Can I act as my own listing agent?

No. You cannot serve as your own agent and collect a commission; we will refer you to a traditional broker and pay you a referral fee.

 

Q. What if I want to buy a home?

No. You cannot serve as your own agent and collect a commission; we will refer you to a traditional broker and pay you a referral fee.

 

Q. Do you own a traditional real estate brokerage firm?

YES! Ohlig Group Realty.

 

Q. Do you provide training?

Yes. We teach you the most effective presentation techniques. And, if you are considering joining Ohlig Group Realty as a full-time agent, we will prepare you for that goal, by including you in our agent training.

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