Frequently Asked Questions

Welcome to the Transitions Real Estate FAQ page!

Here, you'll find answers to the most common questions about our services, including how to park your real estate license, the benefits of transitioning, and how we support your career during periods of change.

Whether you're looking to save on fees, take a break from active real estate practice, or explore your options, we've got you covered with clear and concise information to guide you through the process.

If you have any additional questions, feel free to reach out to our team for personalized assistance.

Have questions about leaving your current Brokerage? See these FAQs here:

Leaving a Brokerage FAQs

Parking A Real Estate License

Parking your real estate license often brings up many questions. Here are some frequently asked questions to help clarify the process and what it involves.

What does it mean to "park" my real estate license?

Parking your real estate license allows you to keep your license active without actively practicing real estate, avoiding certain fees and obligations.

"Parking" refers to the process of registering your license with a brokerage that isn’t affiliated with a Real Estate Board or associations like CREA and OREA. You remain fully licensed with RECO, but by parking with us, you avoid paying dues or fees related to these Boards or Associations. However, you won’t have access to MLS, and you cannot use the title REALTOR®.

Why would I park my real estate license?

Parking your license can be beneficial if you’re taking a break from active practice, exploring other career options, or need time to focus on personal matters while keeping your license in good standing.

There are many reasons why you may wish to park your license. Some examples are:

If you've recently obtained your real estate license but aren't ready to dive in immediately.
If you're winding down your business and considering retirement.
If you're working part-time and your commission isn't covering your brokerage fees and other costs.
If you're planning to go on parental leave.
If you're relocating to another province but are not sure if you'll return to Ontario.

Do I need to pay Real Estate Board dues while my license is parked?

No, when you park your license, you are exempt from paying Real Estate Board dues, helping you save money while you’re not actively working.

Will I have to pay OREA and CREA fees if my license is parked?

No, parking your license allows you to avoid paying OREA and CREA fees, reducing your financial obligations during your break from real estate.

Do I still have to pay RECO Errors and Omissions Insurance?

Yes, all RECO registrants are required to pay an annual insurance fee of $500.

For more information, including insurance due dates, please see this Guideline from RECO.

How much does it cost to park my license?

At Transitions Real Estate, we charge $199 + HST annually and $350 + HST per transaction.

RECO License renewal fees are due every two years. Please see the current renewal fees.

RECO insurance is $500 per year.

You are also required to complete your Continuing Education credits every two years, including the RECO update course. The cost for this is included with your license renewal fee.

Can I reactivate my license after it has been parked?

Absolutely! Just send us a signed termination letter, and we’ll wish you the best in your future endeavors. If you’re unsure about which brokerage to choose next, we’re also here to help guide you.

Do I need to complete continuing education while my license is parked?

Yes, RECO mandates that all Registrants complete the required credit courses, including the RECO update course.

How long can I keep my license parked?

There’s no time limit for parking your license. As long as you pay the necessary fees and keep up with your educational requirements (or any future requirements set by RECO), you can stay with us for as long as you wish. If you choose to leave, simply send us a signed termination letter, and we’ll send you off with our best wishes.

Can I still receive referral fees if my license is parked?

Yes, in many cases, you can still receive referral fees while your license is parked, providing an additional income stream during your break.

Is parking my license the same as inactivating it?

No, parking your license keeps it active but in a non-practicing status, whereas inactivating your license may involve more formal steps with the regulatory body and may require reactivation procedures.

I work for a Brokerage currently. How do I transfer my license?

The process is simple and easy to follow. Here's how it works:

Complete and submit your completed Registration Form to us.
Provide us with a copy of your termination letter from your current Brokerage, dated within 60 days of your transfer application. You can find a sample letter here.
Pay us the annual parking fee of $199 + HST, along with the $25 RECO transfer fee to RECO.

Once we have these, we’ll handle the rest!

Can I still sell Real Estate?

No, once your license is parked, you're unable to participate directly in any real estate transactions. Without access to MLS, market statistics, or marketing materials, you wouldn't be equipped to effectively handle a sale for a friend, family member, or past client. However, you can refer potential buyers or sellers to a Sales Representative or Broker and earn a referral fee from them. Let your buyer or seller know that they won’t need to pay you for the referral; the Brokerage will handle your commission. It's important to clarify that the client will work directly with the Brokerage, not with you. Be sure to have the referring Brokerage sign a referral agreement beforehand to ensure everyone is on the same page regarding referral fees.

How do I get paid my Referral fee from you?

You will receive your referral fee via electronic transfer, directly into your bank account. There's no need to pick up a cheque or wait for the mail—it's fast, secure, and convenient!

Can I do an Open House or be an Assistant for another Rep working for another Brokerage?

No, according to RECO regulations, you can only receive payment from the Brokerage where you are registered. Additionally, you are limited to performing tasks typically assigned to an Unlicensed Assistant.

For more details, you can refer to the RECO guidelines on this topic.

Leaving a Brokerage

Leaving your current Brokerage can sometimes be a confusing process. Here are answers to some frequently asked questions to help guide you through it.

What do I need to do to terminate my agreement with my current Brokerage?

First, review the agreement you have with your current brokerage to understand the terms. Typically, no notice is required, but it's important to confirm the details in your contract. To officially notify your Brokerage, submit a formal resignation letter that outlines your intent to leave. Be sure to include your last working day and any other pertinent information. It’s also recommended to have a conversation with your broker about your departure in advance.

The termination letter that you submit to your Broker/Manager should include the following details:

Your Name
Your Brokerage Name
The Broker/Manager's Name
The date the letter is written
The effective date of your termination

You can find a sample letter here.

Remember, you will need to submit a copy of this letter to RECO to complete your license transfer.

What happens to my firm deals or commission before a deal closes?

If you leave before a deal closes, your commission will usually be paid out by your previous Brokerage once the transaction is finalized. It's important to have a clear written agreement outlining how and when you'll receive your commission. For any firm deals, your former Brokerage should pay you directly once the deal closes. However, remember that even a "firm" deal isn't truly complete until you have the check in hand.

While your previous Brokerage would typically handle any issues that arise between your termination date and the closing, it might be wise not to leave it entirely to chance. If you're referring business back to a Sales Representative at your former Brokerage, consider offering a small referral fee to ensure they assist your client through to closing. This way, if anything comes up—such as a final walk-through inspection or minor amendments—the client will be taken care of. Additionally, this approach allows you to evaluate how the Sales Rep handles your referrals, which could be beneficial if you plan to refer future business to them.

What happens with my Listings or Buyers under contract?

Any active listings or buyers must be referred to a currently active Sales Representative. Since you’ve already done the hard work of securing these clients, you might be able to negotiate a higher referral split with the Sales Representative or Broker you pass them on to. Highlighting that you plan to refer future clients can also make them more open to offering a favourable referral rate.

What documents do I need to submit to RECO when leaving my Brokerage?

You will need to submit a copy of your termination letter to RECO and fill out a Transfer of Registration form if you are moving to another Brokerage or parking your license.

Is there a specific time frame I need to follow when leaving my Brokerage before parking my license?

Yes, once you leave your Brokerage, you have 60 days to park your license or transfer it to another Brokerage. Make sure to complete the necessary paperwork within this time frame to avoid any disruptions in your registration.

Will I have to pay any fees when leaving my current Brokerage?

Depending on your contract with your current Brokerage, you may need to settle any outstanding fees or commission splits before you leave. Additionally, there may be a transfer fee payable to RECO.

Can I take current clients with me when I leave the Brokerage?

This depends on your agreement with your current Brokerage. In some cases, clients may belong to the Brokerage rather than the individual agent, so you may not be able to take them with you. It’s important to review your contract and discuss this with your broker.

Do I need to inform the Real Estate Board or Associations when I leave my Brokerage?

You don’t need to inform the Real Estate Board or Associations directly, but you should inform RECO. Your Brokerage will also notify the relevant boards and associations of your departure.

How will leaving my Brokerage affect my access to MLS and other resources?

Once you leave your Brokerage, you will lose access to MLS and other resources provided by the Brokerage and associated boards. If you park your license, you won’t have access to MLS or be able to call yourself a REALTOR®.

Can I refer my clients to another agent after I leave my Brokerage?

Yes, you can refer your clients to another licensed agent and potentially earn a referral fee. Ensure that the referral agreement is in place and that your client understands they will be working with another agent and not you.