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If an agent only wants to refer clients rather than show homes or negotiate transactions, is joining a referral-only brokerage equivalent to putting the real estate license on inactive status?

Staff Q&A from the 63Hours team.

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No. A referral-only brokerage is a business arrangement; inactive is a licensing status. They are not interchangeable ways to describe the same thing.

Compensated activity involving finding or directing real estate prospects can fall within the brokerage activities defined in Florida Statutes section 475.01. Not conducting showings does not mean a paid referral falls outside licensing rules.

For a sales associate, the relevant questions are whether the license is current and active, which broker is the registered employer, and whether the proposed work is authorized through that brokerage. Section 475.42 sets restrictions on operating without the required active license and working outside the registered employment relationship.

Before joining a referral business, ask for a written explanation of:

  • How your license will be registered and shown in DBPR's records.
  • Which activities you may perform and which you must leave to the receiving agent.
  • How referrals, commission splits and payments are handled.
  • Any membership, renewal or other ongoing charges.
  • What happens when you leave or want to return to regular sales work.

Someone who wants to stop performing new licensed activity may prefer inactive status, but that is different from keeping an active affiliation and generating paid referrals. Do not rely on a company's use of words such as parked, holding or referral to determine the legal status.

Payment for work already lawfully performed can raise different questions from making a new referral while inactive. Have the broker review that situation rather than assuming one answer covers both.

Read our license status guide and brokerage interview checklist before choosing the arrangement.

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