Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm a real estate agent in Pennsylvania and I do not plan on renewing my license by June 1st as I've switch professional fields. I have a home that is listed and under contract and everything is going fine and set to close on May 31st. The one issue is that the dye test isn't completed as of yet and I was wondering if the closing date has to be moved back past when my license is valid what happens to the commission from that house? I'm assuming I still get paid, but if I'm no longer licensed is a broker required to pay a person who isn't licensed / not working for them even though the sale was brought be me. If someone has to go and sit with the client at closing, does that person / agent get a portion of the commission that I earned? I was wondering if it would be a good idea to get another agent lined up and split a portion of the commission if something goes astray or someone representing the seller should be there. The only thing I know for sure is that I can't do any type of real estate activities that require a license.
Any insight would be greatly appreciated.
On sort of a side note, what happens if a broker fires you or you quit and go to to another one and have a home under contract with your old company? Are you still paid? I always wondered that.
I don't think you'll get paid. Only people with a real estate license can receive a commission. You might be able to work something out with your broker that you receive some type of consultant's fee, otherwise, I think you're SOL.
As for switching brokers, it depends on your independent contractor agreement. One broker I worked for said everything went down to a 50/50 split if you left with contracts in escrow. My last and current brokers give you your regular split as long as you're caught up on bills. Talk with your broker.
In MA, I believe a person with an inactive (e.g. expired) license can receive a referral fee but not a commission. So you could perhaps get a 100% referral from your broker. Check with your broker or local licensing authority to see what the laws in your state say. In the end, it might behoove you to renew. I know the nominal licensing fee I pay here in MA is well less than any kind of commission I would earn on a single transaction.
In Florida, if you have a valid, proper, active license at the time the house went under contract, you are entitled to a commission. The closing is just a detail. In fact, that is a question on the Florida real estate exam.
Realtors are welcome here but do see our Realtor Advice to avoid infractions.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
