Can You Still Practice Real Estate While Your License Is On Hold?
Life changes, career shifts, or personal decisions can lead real estate agents to put their licenses on hold. But just because you're stepping back from the day-to-day responsibilities of real estate doesn’t mean you have to stop earning. A key way to generate passive income while your license is inactive is through referral income.
What Does It Mean to Have Your Real Estate License on Hold?
When your real estate license is on hold or inactive, you’re temporarily stepping back from actively practicing real estate. This means you’re not legally allowed to perform key tasks such as listing properties, negotiating transactions, or earning commissions from sales.
LEARN MORE: Should I Put My License On Hold?
Putting your license on hold is a great option for agents who want to take a break from full-time work but still want to maintain their license for future use or passive income. During this time, you're restricted from direct involvement in real estate deals but can still explore opportunities like earning referral fees. Read below to learn how the referral process works:
How Referral Fees Work
Even with your license on hold, you can refer potential clients to active agents and still earn a portion of the commission from the completed transaction. Here’s how it works:
Identify Buyers or Sellers – As you interact with friends, family, or acquaintances, you might come across people looking to buy or sell a home. Instead of passing on the opportunity, you can refer them to a trusted real estate agent.
Make the Referral – Reach out to an active agent or a brokerage you trust. Typically, they will agree to a referral fee that is a percentage of the commission they earn when the transaction closes. Chicago Real Estate License Holding Company (CRELHC) has an extensive network of experienced Chicagoland real estate agents who can accept and close any deal you send their way. You can log in to your CRELHC account anytime to submit a referral.
Earn Passive Income – After the deal is completed, you receive your agreed-upon referral fee. CRELHC offers a highly competitive 80% split for all closed referral deals.
By leveraging your network and referring potential clients, you can still generate income even though you're not actively involved in the transaction process.
How to Set Up Your Referral Business While on Hold
The process for referring clients and receiving your commission is a simple process with CRELHC:
Partner with a License Holding Company – Many agents choose to work with a license holding company to keep their license valid while they’re on hold. Companies like CRELHC can facilitate the legal process of sending and receiving referrals and even provide referral agents that can close.
Build Your Network – Even when you’re not practicing real estate, stay connected with your network. You can still send marketing, let them know you can still help them find an agent, and encourage them to refer potential buyers or sellers to you.
Negotiate Referral Agreements – Always ensure your referral agreements are clear and in writing. Outline the percentage of the referral fee you will earn and any terms related to the transaction.
LEARN MORE: The Referral Process For Agents With a License On Hold
The Benefits of Referral Income
Generating referral income while your license is on hold offers several benefits:
Flexible Income - You can still make money without committing to the time-intensive tasks of being a full-time agent.
Stay Connected - Referring clients keeps you in touch with your sphere of influence and ensures you maintain professional relationships with active agents.
Low Effort, High Reward - Once the referral is made, your involvement is minimal, yet the financial rewards can be significant.
Can You Reactivate Your License?
Yes, when you’re ready to return to active practice, you can reactivate your license by following your state’s specific guidelines. This typically involves completing any required continuing education and paying the necessary fees. If you have your license on hold with Chicago Real Estate License Holding Company, our team can assist with the process.
While you can’t actively practice real estate with a license on hold, you can still earn income through referral fees. By maintaining your network and partnering with a license holding company, you can create a stream of passive income without the demands of day-to-day real estate work. When you’re ready to return, your license is waiting for you, along with the potential for even more referral opportunities.
Ready to put your license on hold? Chicago Real Estate License Holding Company offers an extensive referral network, aggressive 80% referral splits, and limited transaction support at only $90/year. Sign up today or contact us with any questions.