What Is A Real Estate License Holding Company?

Real estate license-holding companies have become increasingly popular in recent years. But what exactly are they and who can benefit from them? Simply put, a real estate license holding company is a company that holds the real estate licenses of brokers and managing brokers. It acts as the legal entity that holds the licenses and manages the business operations of the licensees.

By holding their licenses with a holding company, agents and brokers can avoid the administrative burdens that come with managing their own licenses, such as maintaining records, renewing licenses, and dealing with regulatory compliance. This includes not being required to pay association dues or brokerage insurance fees. While putting your license in a holding company will essentially put your license “on pause” you will still be responsible for continuing education requirements.

So, who can benefit from using a real estate license holding company? The answer is pretty much anyone who holds a real estate license, that is looking to take a break from practicing real estate. A popular choice for realtors that might be having kids, traveling, or starting a new business. Another advantage realtors gain when joining is the ability to earn referral commissions while their license is in holding. So while you can’t do showings, answer questions, or give real estate advice - you can still earn money by having a strong referral system in place.

Transfering your real estate license to a holding company can be a great decision if you’re taking a break from real estate. It will save you money and headaches dealing with admin fees & paperwork while still allowing you to collect commissions through referrals.

Questions? Ready to Join? Call us at (733) 325-2800 or email info@pearsonrealtygroup.com today to get started!