Wednesday, September 5, 2018 / by Dani Drissi-Means
Making a switch to a new Broker is not always an easy decision, but the process doesn’t have to be that difficult, if you know what to expect.
The four basic step are:
- 1. Let your current Broker know that you are leaving per your contractor agreement with her or him.
- 2. Request sponsorship from your new Broker on TREC’s website. (Trec.texas.gov, more on this later)
- 3. Sign an agreement with your new Broker.
- 4. Update Your Brokerage Information with Your Local Association of Realtors.
What Happens to My Current Deals?
First, you don’t have to close all your deals before making a move to a new Broker. This is the most asked question I get from agents that are looking to make a switch in Brokerages. Most Brokers are great people and understand that your circumstances and life changes. It is not uncommon for agents to move to other firms at some point in their real estate careers. Most Brokers will allow you to service and close your remaining deals with them just as you were an agent with their firm, when you leave. Check your contractor agreement with your current Broker for specifics on this as every Broker operates differently.
Your active listings may be transferred to your new Broker if they are not under contract; however, you must have your Broker’s permission. This process is done with a form from your local MLS board that must be signed by the Broker releasing the listing and the new Broker accepting the listing.
Most Brokerages will require some sort of process by which to notify them of your leaving. Once you have interviewed and decided on your new Brokerage, send your old Broker any notice you are required to. At the very least, an email should be sent to let them know you are leaving and on what date.
What About My Email & Current Contacts?
Keep in mind that your email and contacts are often the property of the Broker, so be sure to have backed up your information prior to giving your notice. Some Brokers may cut off your email and any access to systems immediately so you must ensure you are prepared for this!
Request Sponsorship from Your New Broker
You will need to request sponsorship from your new Broker on the Texas Real Estate Commission’s website at www.trec.texas.gov. If you have not registered with (TREC) online, I suggest you create an account at your earliest convenience. This will greatly assist you with your license for renewals and updating your contact information easily in addition to allowing you to request and terminate your Broker sponsorships.
Once you have logged into TREC’s website, you may request sponsorship from your new Broker using the drop down menu. If it is a corporate Brokerage you will request sponsorship from the corporation or LLC and not the Broker of record. For example, we operate under Drissi & Means Realty, LLC (License #9006302) DBA Life-Style Realty; although I am the Broker, I have no licensees under my personal Broker’s license, only under the entities that I sponsor. Your request for sponsorship from your new Broker will not be complete until you have made payment to TREC. It is a small fee of $20.60 that TREC collects from you to process this request. You can do this at the end of the process. Once your new Broker accepts your license, you will be ready to operate under your new Broker!
You may use the paper form to transfer your license as well; however, this extremely lengthens this process. The paper form can be found under “change” forms on TREC’s website here. This form will need to be signed by the new Broker and mailed to TREC’s main office in Austin. The cost for mailing in the form is $40.00 whereas the online method is almost half the price, only $20.60.
Sign an Agreement with Your New Broker.
Each Broker has their own set of documents to sign. The Texas Association of Realtors offers many of these forms, but you should make sure that you know what you are signing. Things that you want to pay particular attention to are the split agreement, duration of the agreement, and what happens to your deals and prospects when you decide to leave.
I hope this helps make things a bit clearer and less intimidating when making a change in Brokers. Switching Brokerage firms in our industry is not un-common, that is until you find Life-Style Realty. If you do your due diligence and compare what we at Life-Style Realty offer our agents to what you’re getting from your current brokerage, along with the splits & fees, you’ll be left left wondering why you didn't make the switch sooner.
Update Your Brokerage Information with Your Association of Realtors
Our firm currently hold memberships in MetroTex Association of Realtors. You will need to fill out the appropriate "change" or "new agent" form to make the switch to your new Brokerage. We will provide you with the right forms to fill out upon joining Life-Style Realty. If your currently with MetroTex for your MLS then this transition is even easier. We also hold a secondary membership in CCAR as well.
Life-Style Realty is a Dallas-based Real Estate Firm that currently Brokers throughout the Dallas/Fort Worth Metroplex. To find out how to work with us, visit JoinUs.Life-StyleRealty.com or call 469-567-3191.