Can an Inactive Texas Agent Receive a Commission?
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.
Photo: Licensed from iStockPhoto