Ontario Real Estate Agents Now Have an Option to Move and Park Their Real Estate License

Park your real estate license is now a term used by hundreds of agents registered with the Real Estate Council of Ontario. Those practitioners who seek out such a service are usually agents that need to have their license held by an active Brokerage and one that has been a recognized name in the Ontario real estate Brokerage industry for over many years. Brokerage holding or parking companies have been assisting real estate agents with a better option if they decide to park their license with a non member Brokerage, thereby saving on the board fees and dues. The main service a holding Brokerage provides is a place for agents to park their license for a small fee and this would allow the agent to carry on with whatever other plans they may have. For example, full-time agents switching to part-time, women going on maternity leave, a change of profession etc. etc. When searching for a Brokerage that will allow you to have your license parked, make sure you do your due diligence and seek advice from others you may know who have already parked their license. Locate and interview prospective Brokers and hopefully you will find a Brokerage that has been and continues to be a proud holding company for those real estate agents who are parking their license and taking a break from real estate sales in Ontario.

The main difference between a board member Brokerage and a non member one are basically the costs incurred. If the Brokerage is a Board member then each agent registered with that Brokerage must be a member too. This means that the agent will be expected to pay the Board a yearly membership fee for that privilege. The fees for such a membership could be as high as $1500.00 per year. This may or may not include other association fees and dues.

If an agent is not selling much real estate and therefore not earning a sufficient income, he or she may strongly consider parking their license with a Brokerage that is not a real estate Board member. A new agent just licensed may consider parking it too while they also consider their options. With a parked license, agents may still trade in real estate but would do so without the benefits of a real estate Board. In this case they may cooperate with a Board member and share the business or they can enter into an agreement with a Board member to cooperate with a non member.

Should I Get a Real Estate License for Wholesaling Houses Full Time?

Should investors get a real estate license if they plan to get into wholesaling houses full time?

One of the most common questions investors have is if they should get licensed as agents and become Realtors if they will be wholesaling houses full time. So is it necessary and if not, then what are the pros and cons of getting one anyway?

Investors will be glad to know that they do not need to get licensed by the state to sell property or have to join the local Realtor’s association if they are going to be buying and selling homes for themselves.

Still, that doesn’t mean that you can’t get licensed. The question is what are the real pros and cons?

4 Pros of Getting Your Real Estate License When Wholesaling Houses Full Time

1. MLS Access

Having your license and joining the local Realtor board can get you direct access to the MLS. This means being able to jump on deals faster and access more details on the seller and their motivation.

2. Networking

As one of the pack you might find it a lot easier to network with other agents and gain referrals as well as supplementary leads you wouldn’t otherwise have access to.

3. More Profit

As an agent you can save on buying and selling commissions and add thousands in profit margin to each deal. You’ll also find opportunities to gain referral fees and generate additional commissions for helping other buyers and sellers even if you don’t want to take on their homes yourself.

4. Tools

In addition to MLS access you’ll also receive access to additional tools, materials and forms that will all come in handy.

4 Cons of Getting Your Real Estate License When Wholesaling Houses Full Time

1. Disclosure

On the downside if you get your salesperson’s license you’ll have to disclose it when buying and selling homes. This may not make any difference in most cases but there are buyers and sellers out there that are adamant about not doing business with Realtors, ever.

2. Lawsuits & Complaints

Unfortunately being a Realtor immediately makes you a target for all types of frivolous and silly complaints and lawsuits. Imagine you reputation being ruined because you were too slow to pick up the phone call from another agent on a Sunday night. It happens.

3. Fraud

Sadly, being licensed also means being guilty of committing fraud or at least breaking the rules for things that unlicensed investors can do all day long. This is no small issue, so consider your business model and future plans carefully before getting that license.

4. Added Expense

If you are trying to keep costs down a license might not be for you. Between the state course (multiple if you want to be licensed in other states too), licensing exam, E&O insurance, Realtor dues, renewals and any other required expenditures by your real estate broker you could be putting out a lot more than you think.