What is a Referral Group within a Brokerage?

What is “Referral” Status for a Licensee?

As per Division of Real Estate Rules, all active licensees must be affiliated with a brokerage, under the umbrella of the principal or branch broker.  

Brokerages who are members of associations / boards that are part of the National Association of REALTORS, are obliged by the governing by-laws- to have each of their licensees join as full members of the board(s) with which the principal or branch broker is affiliated.

Many brokerages have created “Referral Branches” with the licensing bureaus, ie: Utah’s Division of Real Estate in order to accommodate certain agents who have active licenses and are under the umbrella of the brokerage, but are not actively doing any type of real estate as a business.  This status is recognized by the NAR.  Accordingly, “the exemption for the licensees in (referral status) requires the licensees not to be engaged to any degree in the listing, selling, leasing, renting, managing, counseling, or appraising real property.”  Furthermore, “the exemption for a referral licensee is automatically revoked upon the individual engaging in activities requiring a real estate license other than making referrals.”

Please refer to this article available from the National Association of REALTORS: https://www.nar.realtor/about-nar/policies/limited-function-referral-office-lfro-policy

How much does it cost to be in the referral branch?

At Keller Williams, your status with the Referral Branch does not alter your relationship with the brokerage.  You will still be responsible for the standard KWRI monthly fees, any other monthly office fees incurred, and any print and copy charges incurred while using the office printers.

What are my splits with the brokerage?

Your splits with the brokerage are the same as if you are an individual agent in a branch for agents who are doing business.  

Can I get paid a referral fee for referring a client?

Yes you can receive a referral fee subject to the split with the market center.

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