Becoming Real Estate Referral Agent

[Chris Spespy]

Dear bigger pockets community,

I am trying to decide whether it is worth it to me to get a real estate license in order to become a real estate referral agent mainly for my own purchases that I plan to make in the next few years. From my research, it looks like the upfront cost to become a real estate agent is quite minimal: under $700 for the precertification classes and the exam itself.  But this seems too good to be true...

1. I know that I have to be part of a brokerage to be able to practice my license. What are the fees associated with it? Do all brokerage charges the same amount? If not, how do you decide which to go with? 

2. There are legal liabilities associated with being a real estate agent, for example an agent can be sued when a buyer sued the seller for misrepresentation or anything really. Does a real estate referral agent share the liabilities? In other words, if I refer a client to a realtor, am I liable for whatever happens during the sale? 

3. Would it work if I am both the buyer and the real estate referral agent? Is there anything I should be wary about/aware of in this scenario? 

I guess what I am trying to research is all of the pros and cons of getting my own license to recoup some of the fees associated with buying a home. Thanks in advance for all your knowledge. Any advice, esp ones I have not thought of, would be much appreciated. 

[Catherine Emert]

Chris - I think this largely depends on what state you are trying to get licensed in. There are also additional fees if you hang your license with a brokerage that is a REALTOR member and a member of the MLS.

Not all brokerages charge the same amount - some have monthly desk fees, some require you to pay your association/mls dues and a percentage of your commissions. When I talk with brokers I tell them to interview with a minimum of 5 brokerages. Ask them what they offer you, what are all fees associated with hanging your license at their office and general questions to know if you are a right fit in their brokerage. 

If you are an agent, referral or otherwise, you carry a liability of being sued.