Before we get into the explanation of an inactive agent and an active agent, we will begin with a brief summary of how the real estate brokerage system works in Ontario. We will refrain from going into too much detail and therefore the following will be a very simplified version.
In Ontario we have a brokerage board of directors called RECO or the Real Estate Council of Ontario. A broker is registered with RECO, pays its fees and charges including error and omission insurance, and is then ready to trade real estate only in the province of Ontario. The owner / broker may work alone as a single entity or invite licensed real estate sellers and brokers to join their brokerage firm and trade real estate on behalf of the broker.
A real estate broker in Ontario can apply to become a member of your local real estate board. If accepted, the broker will pay board fees and dues which may include fees and dues applicable to the Ontario Real Estate Association and the Real Estate Association of Canada. If this option is taken by the Broker, then all real estate agents registered with this Broker must also become members and pay their fees and applicable fees to said board and associations. In very rare cases, the broker will cover these fees and fees for selected agents. The difference between being a board member or not is that the board members will have the privilege of all the services available to them from the board and the associations, including the multiple listing service which has proven invaluable to the professional. full-time real estate.
So what is an inactive realtor? Simply put, an inactive agent in Ontario is one who is licensed by RECO and, for whatever reason, has decided that they will not trade real estate and has not done so for a specified period of time. There are still many agents in Ontario who remain with their current brokerage and if that brokerage is a board member, then even if an agent is inactive, they may still be paying fees and dues. Fees and fees may also include your monthly brokerage fees, desk fees, franchise fees, and other expenses. Since this is obviously a huge waste of money, these inactive agents will look to other brokers that will allow them to park their license without the wasted expenses.
These are some of the terms used when referring to a broker who accepts inactive real estate agents in Ontario. “Park your license”, “store my license”, “hang up my license”, “keep your license”, “real estate or brokerage licensing company”, just to name a few.
A real estate agent who decides to park their license will still have to pay some fees, but the difference will save them hundreds, if not thousands, of dollars a year. Some of the fees will be for RECO, such as license registration fees, which expire every 2 years and errors and omissions insurance will continue to apply. In Ontario, they must also earn 24 credits in their continuing education requirements and these credits expire upon renewal.
What about the real estate agency that provides the licensing services? Here the agent must do their due diligence. Look for a trusted and proven brokerage office that is not a member of any real estate board. Ask for the highest commission split available to you in case you sell a property or 2, or if you refer the sales to other brokers or agents you may know. Even though your license is in the Park and you are inactive, your current license is still active. Make sure you don’t pay ridiculous desk fees, additional monthly fees, franchise fees, etc. With that said, a small membership fee will most likely apply for your services. Look for the best deal, but remember to keep the experienced parking or licensed broker a priority for you.
Inactive, then, refers to the real agent who is not active in the daily real estate trading. As long as the license is registered with the Ontario Real Estate Council and remains current, your real estate license is “active.” If you decide, as an agent, to remain inactive, you now have a wonderful, money-saving option to transfer and join an Ontario brokerage where you can park your license. This Brokerage will keep your license and this will allow you the opportunity to keep your license active so that it does not get stuck and expire or get canceled.
I shudder to think if I would have to go over the process and expenses of getting my real estate license again … ouch! If you have this valuable asset now and are thinking of going inactive for whatever reason, think carefully about keeping your license active because you never know how valuable this asset will be to you in the future. Hang it, park it, store it, hold it, keep it going! Good luck.
