The Referral Process For Agents With a License On Hold

The choice to put your license on hold is an important decision many agents will face over the course of their real estate careers. Fortunately, putting your license on hold doesn’t exclude you from continuing to generate passive income while not practicing. The referral process allows agents to capitalize on their networks while their real estate career is on hold. This guide will help you to develop a greater understanding of the referral process!

Identification of the Need:

The referring agent identifies a need to refer their client to another real estate professional. Although an agent may not be actively practicing, their background and expertise often provide clients with valuable assets over the course of their property search.

Selection of the Receiving Agent:

The referring agent chooses a suitable real estate professional to refer their client to. This decision is typically based on factors such as the receiving agent's specialization, expertise, reputation, and geographic location. This is an integral part of the process, as finding an appropriate receiving agent is paramount to a successful property search. If you do not have a receiving agent to take on your client, Chicago Real Estate License Holding Company can assist in matching you with a Pearson Realty Group agent.

Contacting the Receiving Agent:

The referring agent reaches out to the receiving agent to discuss the referral. They may provide background information about the client, their specific needs, and any other relevant details. The referring agent may also inquire about the receiving agent's willingness to accept the referral.

Agreement and Terms:

If the receiving agent agrees to take on the referral, both agents typically enter into a referral agreement. This agreement outlines the terms and conditions of the referral, including the referral fee or commission split that the receiving agent will pay to the referring agent upon the successful completion of the transaction.

Introduction of the Client:

The referring agent introduces the client to the receiving agent, usually through an email, phone call, or in-person meeting. They provide the necessary contact information and any relevant documentation or paperwork to facilitate a smooth transition.

Client Engagement:

The receiving agent takes over the client's real estate needs and begins working with them directly. They provide the necessary services, such as property search, marketing, negotiations, and transaction management, in accordance with their standard practices.

Completion of the Transaction:

Once the transaction is successfully completed, the receiving agent compensates the referring agent as agreed upon in the referral agreement. This compensation is typically in the form of a referral fee or a percentage of the commission earned from the transaction.

The referral process is an important aspect of any agent’s career, whether or not they are actively practicing. It's important to note that the specific details and processes may vary among different real estate agencies and professionals. Some referral networks or brokerages have their own internal systems and guidelines for handling referrals. Ultimately, The referral process provides agents with a license on hold and the ability to continue networking, profiting, and maintaining relevance in the exciting world of real estate.

Here at CRELHC, we strive to make the license-holding experience trouble-free.

For further questions regarding the specifics of the referral process at CRELHC, please refer to the FAQ page.