Frequently Asked Questions About LFRO's
1) Will I be able to list properties or represent buyers?
No. The only activity authorized for a LFRO referral agent is referring potential clients to an active agent working for a REALTOR®’s brokerage company.
2) Can I act as an agent on my personal property transaction or on a Buy or Sell transaction of a of a family member?
No. A LFRO referral agent cannot act as an agent to list, sell, lease, rent, manage, counsel, or appraise property, but you may refer yourself and earn a commission. This is just one of the benefits of keeping your license active!
3) Can a LFRO referral agent have MLS access?
No. It is anticipated that a LFRO referral agent will not need to access the MLS because they are only engaged in making referrals and not listing, selling, leasing, renting, managing, counseling, or appraising real property.
4) What if my license is inactive or expired?
As a Real Estate Sales Agent, you must renew your license every two years. About 90 days before your expiration date, the Texas Real Estate Commission (TREC) sends a notice out . As part of the renewal process, you must complete certain continuing education courses. You may renew your license up to six months after the expiration date. After six months and up to two years past the expiration date, you may apply for reinstatement of your license. After two years past the expiration date, you will have to reapply and pass the examination.
5) How do I get paid?
Once Texas Real Estate Referrals receives the referral fee from your referral closing, we will notify you by e-mail or text and arrange to transfer funds to you. In January of the next year you’ll receive a 1099 form showing your earnings. Texas Real Estate Referrals does not deduct taxes. The IRS considers real estate agents to be independent contractors unless hey are salaried. It is up to you to pay estimated taxes.
6) How much money can I earn?
That depends on you. You are in control of your income stream. Think of your family, friends, co-workers, and neighbors who buy or sell property. There is no limit to the amount you can earn.