Can an Inactive Texas Agent Receive a Commission?

Commissions and Referral Fees

I found this question in my site logs this morning.

In Texas only active salespersons and brokers can be paid or receive any form of compensation. Compensation is defined as anything of value including commissions and referral fees.

That’s where a Limited Function Referral Only (LFRO) brokerage such as Referral Agents of Texas comes in.

Our salespersons are active agents with the Texas Real Estate Commission. The only difference between our agents and other agents is that our agents cannot practice real estate because of the Independent Contractor Agreement. The only thing they can do is to refer out business. In return, they do not have to pay dues to NAR, TAR or the local association; no MLS fees; and no keycard rental.

See our Frequently Asked Questions for more information on LFROs.

Tom Branch

Photo: Licensed from iStockPhoto

About Tom Branch

Tom Branch has written 8 posts in this blog.


Have you ever just met someone, but felt you like you'd known him for years? That's what most people experience with Tom. He has a knack for making folks feel right at home. After 21 years in the Air Force, loyalty and honesty are the foundation of everything Tom does. In addition to being a Texas Real Estate Broker, Tom is a Certified Distressed Property Expert (CDPE) and a Short Sales & Foreclosure Resource (SFR).