Referral Agent FAQs | Hanging a California Real Estate License

Questions and Answers

Everything agents ask before they hang.

Costs, what a referral agent can and cannot do, how the paperwork works, and what happens to your license. If the answer you need is not here, call us.

Getting started

What does it mean to hang your real estate license?

Hanging your license means placing it with a licensed broker. In California a salesperson license cannot be used or held active on its own, it has to sit with a broker. When agents say they want to hang or park a license, they usually mean placing it with a brokerage that keeps it active and legal without charging them board dues, MLS fees and desk fees they no longer need.

Will my license stay active?

Yes. As long as your plan is current and your license has not expired, you are an affiliated licensee of Platinum Star Properties in good standing with the Department of Real Estate.

How long does the whole process take?

Most agents are done in under a week. The application takes about five minutes, the broker interview is usually scheduled within a few business days, and once you sign and choose a plan we file the change with the DRE within one business day.

Do I have to interview with the broker?

Yes, every applicant does, referral agents included. Jonathan Brier is our Broker of Record and he is responsible for everyone licensed under the brokerage, so he speaks with everyone. It is fifteen to twenty minutes by phone or video.

Can I join if my license is already expired?

Not directly. An expired license has to be renewed with the Department of Real Estate first. If it lapsed more than two years ago you generally have to requalify by exam. Call us and we will tell you where you stand before you spend money on anything.

What if my license is inactive but not expired?

That is fine and it is common. Placing it with us is what makes it active again.

Money and plans

What does it cost?

Basic is $6.99 a month or $80 a year. Plus is $235 a year. Pro is $465 a year. Plus and Pro are annual only. There is no separate startup fee, no desk fee and no monthly minimum. You pay for your plan and nothing else.

What is the difference between the plans?

Only how much of each referral fee you keep, plus a few extras. Basic is an 85/15 split, Plus is 90/10, Pro is 95/5. Pro also has no per transaction fee and includes a custom digital business card. Plus and Pro include the marketing library and referral training.

Why are Plus and Pro annual only?

The better splits are priced on the assumption that you are here for the year. Basic is where you go if you want month to month flexibility.

How much can I earn on a referral?

Referral fees are negotiated deal by deal and commonly run 20 to 35 percent of the receiving agent's commission. On a $700,000 sale with a 2.5 percent listing side commission, a 25 percent referral fee is $4,375 before your split. Commission rates are negotiable and are not set by law, so treat any figure as an illustration and not a promise.

When do I get paid?

After the transaction closes and the receiving brokerage pays the referral fee to us. We then pay your share per your plan split. There is nothing for you to chase, but the timing depends on the other brokerage.

Are there any hidden fees?

No. There is no separate startup fee and no desk fee. Basic and Plus carry a per transaction fee on a closed referral, which is disclosed in your Independent Contractor Agreement, and Pro has none. Beyond that, the plan fee is the whole cost.

Do I pay before or after I am approved?

After. You apply and interview first, at no cost. Once the broker approves you and you have signed the paperwork, you choose a plan and make your first payment. That payment is what we need before we file your license with the Department of Real Estate, so nothing moves until it clears.

Can I cancel?

Yes. Monthly Basic can be cancelled at any time and it stops at the end of the paid month. Annual plans run to the end of the term. Plan fees are non refundable. When you leave you will need to place your license with another broker or go inactive with the DRE.

Do you pay for agent referrals?

Yes. Send us another agent and when they join and complete their first paid term we pay you $350. There is no cap.

What you can and cannot do

Can I list a property as a referral agent?

No. Referral agents do not list property, do not represent buyers or sellers, do not show property, do not write offers and do not negotiate on a client's behalf. You refer the client to an agent who does all of that.

Can I refer a client to an agent at another brokerage?

Yes, at any brokerage, in any state. If you do not have someone in mind we can match you with an active agent from our network.

Can I refer myself when I buy or sell my own home?

Yes. Paper it as a referral like any other and take your split. This alone covers the cost of the plan for most agents.

Do I get MLS access?

No. MLS access comes through association membership, which referral agents do not carry. That is precisely why the plan costs what it does.

Do I need to keep paying REALTOR or board dues?

No. Referral agents are not required to be REALTOR members. If you are currently a member you should cancel it yourself, as those memberships often renew automatically and we cannot cancel them for you.

Who covers errors and omissions insurance?

The brokerage carries errors and omissions coverage for its licensees. You do not buy a separate policy.

Paperwork and compliance

Do I still need continuing education?

Yes. Continuing education and renewal are between you and the Department of Real Estate no matter which broker you hang with. We will remind you as your renewal approaches, but the obligation is yours.

Will you ask for my Social Security number on a form?

Never. Your taxpayer ID is collected on the W-9 inside the secure signing envelope, which is the only appropriate place for it. If anyone asks you to type a Social Security number into a plain web form, at any company, stop.

I have something on my record. Should I bother applying?

Yes, and disclose it. We ask three questions about DRE discipline, restricted or probationary status, and pending investigations. A yes is not automatically a no, and the broker will talk it through with you. Failing to disclose is what ends an application.

Do I have to quit my current brokerage before applying?

No. Apply, interview and get approved while you are still where you are. Nothing is filed with the DRE until you have signed and chosen a plan. Just settle how any pending transactions get paid before you move.

What paperwork will I sign?

An Independent Contractor Agreement, the company policy manual acknowledgement, and a W-9. All of it is electronic and the broker countersigns.

Still have a question

Call 760-424-8024 or email [email protected]. A person answers.

Keep the license you worked for

From $6.99 a month, with no MLS dues, no REALTOR dues and no errors and omissions premium out of pocket.

Hang my license
Platinum Star Properties, Inc.
Jonathan Brier, Broker of Record
4741 E Palm Canyon Drive, Suite B, Palm Springs, CA 92264
760-424-8024 · [email protected] California Bureau of Real Estate. Corporation license #02141936 · Broker of Record license #02207471