Frequently-Asked-Questions (FAQs)
Licensing, Transfer Process, REALTOR® Membership, Education, etc.
Do i have to keep my license active?
Yes. In order to maintain your sponsorship by Paragon Referral Partners, your TREC license must remain active. This means that you must complete all required Continuing Education (or SAE if this is your first license period) and pay the renewal fee prior to your expiration date. There is more information about CE requirements at the TREC website: https://www.trec.texas.gov/renew-license/real-estate-sales-agent
what about my realtor® Membership?
If you drop your REALTOR® membership and then later rejoin the local/state/national association, NAR rules may require you to repay some or all of the dues that you avoided paying during that time. This is to prevent license holders from "popping in and out" of REALTOR® membership in order to avoid dues. Contact your local REALTOR® association's Membership department to discuss your particular situation.
can I call myself a "Realtor®"?
No. REALTORS® are members of the National Association of REALTORS® (NAR) (and state and local association). If you were previously a member of NAR, your membership will be resigned when you transfer to Paragon Referral Partners. Paragon Referral Partners is a special company which allows sponsored license holders to remain active without any REALTOR®, MLS, lockbox, or showing service fees.
do i have to take continuing education?
Yes. In order for your license to be held in active status, minimum CE (SAE if this is your first license period) must be completed prior to each 2-year renewal. Associates may take classes from local title companies or lenders, the Paragon brokerage, the local Board/Assoc of REALTORS® (if they allow non-member attendance), or we have partnerships with some online schools you can find under the Affiliates tab at the top of the page.
what's the difference between this and going inactive?
Inactive license holders are treated under the License Act and TREC Rules as if they do not have a license. That is, they are unable to do any activities for which a real estate license is required, such as making referrals for a fee. Inactive license holders must still pay TREC for their renewal application every 2 years but are not required to take any continuing education in order to renew. To go from Inactive back to Active status with TREC, the license holder must take the currently-required minimum CE hours.
is this program available in other states apart from texas?
No. At present, Paragon Referral Partners is licensed only in Texas. Referrals can still be made to other brokerages around the country, however.
MY LICENSE HAS BEEN INACTIVE FOR A WHILE - HOW DO I BRING IT BACK TO ACTIVE?
To return your license to Active status, the current minimum Continuing Education (CE) may be required, depending on how long you have been inactive. If you renewed your license on Inactive status without having completed the minimum CE, you likely will have to complete the remaining CE to become Active. Once CE is completed (if required), the broker will send a sponsorship offer to your TREC My License Services account.
what is the process if I want to sign up?
(1) Submit an inquiry via the Join Us tab at the top to start the process.
(2) If you are not already personally known to the Broker, an interview may be required to discuss your license history, prior disciplinary actions, and future plans.
(3) Once you and the Broker agree to move forward, the Independent Contractor Agreement, Commission Schedule, and Policy Manual are sent to you via DocuSign for signature.
(4) If you are currently sponsored by another broker, TREC Rules require you to notify your current sponsoring broker or manager/supervisor in writing prior to moving or inactivating your license. We cannot do this for you.
(5) Once the onboarding documents are fully signed, a sponsorship invitation is sent to your TREC My License Services account. You will login at TREC to accept the sponsorship and finalize the transfer.
(6) Your previous sponsoring broker (if applicable) will notify the local Board of REALTORS® that you have transferred out. The Paragon Referral Partners broker will notify the MetroTex Assoc. of REALTORS® to move your license to Referral Status under us in order to stop any REALTOR® or MLS billing.
(2) If you are not already personally known to the Broker, an interview may be required to discuss your license history, prior disciplinary actions, and future plans.
(3) Once you and the Broker agree to move forward, the Independent Contractor Agreement, Commission Schedule, and Policy Manual are sent to you via DocuSign for signature.
(4) If you are currently sponsored by another broker, TREC Rules require you to notify your current sponsoring broker or manager/supervisor in writing prior to moving or inactivating your license. We cannot do this for you.
(5) Once the onboarding documents are fully signed, a sponsorship invitation is sent to your TREC My License Services account. You will login at TREC to accept the sponsorship and finalize the transfer.
(6) Your previous sponsoring broker (if applicable) will notify the local Board of REALTORS® that you have transferred out. The Paragon Referral Partners broker will notify the MetroTex Assoc. of REALTORS® to move your license to Referral Status under us in order to stop any REALTOR® or MLS billing.
Who is this program for?
Transferring to a Referral-only Brokerage such as Paragon Referral Partners may be a good solution for:
(1) License holders who want to transition to retirement but who still have a strong enough business to serve as a referral partner in connecting their past clients and prospects with other agents who are currently active.
(2) License holders who do not have the time or resources to devote to the practice of real estate at the moment, or who do not have enough real estate business going on to justify the cost of memberships, marketing, etc.
(3) License holders who want to take a leave of absence from real estate for personal, family, or business reasons but who may still have contacts who can be referred to other agents for a fee.
(4) Newly-licensed individuals who want to dip their toes into real estate by making referrals but who do not want to actively work with clients at the moment.
Paragon Referral Partners is not a good solution for license holders who only want to temporarily pop out of real estate to avoid an upcoming bill or dues payment.
(1) License holders who want to transition to retirement but who still have a strong enough business to serve as a referral partner in connecting their past clients and prospects with other agents who are currently active.
(2) License holders who do not have the time or resources to devote to the practice of real estate at the moment, or who do not have enough real estate business going on to justify the cost of memberships, marketing, etc.
(3) License holders who want to take a leave of absence from real estate for personal, family, or business reasons but who may still have contacts who can be referred to other agents for a fee.
(4) Newly-licensed individuals who want to dip their toes into real estate by making referrals but who do not want to actively work with clients at the moment.
Paragon Referral Partners is not a good solution for license holders who only want to temporarily pop out of real estate to avoid an upcoming bill or dues payment.
What about the real estate designations or certifications i've earned?
Consult the institution or organization which awarded the designation or certification. Most of the REALTOR® family of designations and certifications (e.g. CRS, ABR, GRI, SRS, SRES, et al) require active REALTOR® membership, and many require annual dues or renewal fees paid to NAR or one of their affiliate institutes. By transferring to a referral brokerage, you are resigning your REALTOR® membership and may have to forfeit the designation or certification.
Fees, Dues, etc.
what are the sign-up and monthly fees or dues i have to pay?
No start up/sponsorship fees. At present, Paragon Referral Partners does not charge a fee to sponsor licenses. Referral agents pay the brokerage only when they receive a referral fee. If you have no transactions, there is no charge to hold your license.
DO I HAVE TO PAY BOARD / MLS / SHOWING SERVICE / LOCKBOX FEES?
No. Paragon Referral Partners is a special company which allows sponsored license holders to remain active without any REALTOR®, MLS, lockbox, or showing service fees. This is because your license is only being held active in order to send referrals to other agents, not to perform any other "real estate" activities. You are not a "REALTOR®" any longer.
Making Referrals & Getting Paid
Where can I send referrals? Is it limited to texas?
As a referral agent with an active license in Texas, you are able to refer prospects to active agents both within Texas and nationwide. You may even be able to send international referrals, depending on the license laws in the local jurisdiction.
How do i find agents to refer Prospects?
If the prospect is in the Texoma region (Sherman/Denison/Pottsboro etc), Greater Dallas-Fort Worth region, Cedar Creek Lake/Athens region, or San Angelo region, we have affiliate agents at PARAGON, REALTORS® able to assist the prospect. Please try to utilize Paragon agents whenever possible. Visit www.paragonrealtors.com to view agents in each office/region.
If the prospect need is elsewhere, whether in Texas or nationwide, and you do not already know an agent there, a good resource is the Certified Residential Specialist Referral Directory at www.crs.com.
If the prospect need is elsewhere, whether in Texas or nationwide, and you do not already know an agent there, a good resource is the Certified Residential Specialist Referral Directory at www.crs.com.
How do I send a referral to an agent?
Contact the agent to discuss the referral and arrange the referral fee you will receive for referring the prospect. Complete the Paragon Referral Partners referral agreement form and send to the agent, along with the Paragon Referral Partners W9 form for our Tax ID. See below for Downloads. If the receiving agent has their own referral form they would like to use instead, it is OK to do so.
What do i do after sending the referral?
Follow up with the agent periodically regarding the transaction/referral status. You may also want to check in with the prospect from time to time. Remember that you cannot give any real estate advice/opinions to the prospect.
When & How do I get paid?
Following the closing/funding of the transaction, the title company or broker will pay the referral commission to Paragon Referral Partners. Once the payment clears the bank, we will pay you your commission. Payment can be made by Zelle or paper check sent to you.
Permitted and Prohibited Activities
CAN I WORK AS AN ASSISTANT FOR AN AGENT OR BROKER?
No. It is our policy that sponsored agents of Paragon Referral Partners may not provide services to another broker or another broker's agent. This is because it is too easy to slip into providing services for that broker which require an active real estate license. Your sponsorship with Paragon Referral Partners is a special arrangement which allows you to keep your license active only for the referring of prospects and not for any other act which requires an active real estate license.
Can I show property or host an open house?
No. Your license is only being held Active in order for you to send referrals to other agents. You are not authorized to perform any other acts which require an active license, such as hosting/"sitting" an open house, or showing property in any manner, including accompanying a buyer to a new home consultation or builder model home walk-through.
WHAT ABOUT NEW HOME BUILD REFERRALS?
You may refer a prospect to/register a prospect with a new home builder for a fee, provided that you do not do any other activity which requires a real estate license (showing, negotiating, assisting with inspections/repairs/punch list, etc.). Performing these other activities which require a license is a violation of your Independent Contractor Agreement.
Can I work for a new home builder or apartment community?
It depends. If the builder/community policy allows, you can be an employee of the builder/apartment community in order to sell/lease your employer's units. This activity is exempted from the License Act if performed for your employer as part of your regular employment (selling the builder's units, acting as an onsite apartment manager, acting as leasing agent for a single owner). You are not permitted to work for multiple builders or apartment owners except as allowed in the Paragon Referral Partners policies as this is activity governed by the License Act.
WHAT ABOUT APARTMENT REFERRALS OR RENTAL LOCATING?
You may refer prospects to apartments or property managers for a fee, provided that you do not accompany the prospect or "show" the unit. You may only register the prospect. If the property management or apartment community requires vendor credentialing (e.g. RealPage, Compliance Depot, RMIS, etc.), the brokerage may decline to pursue such credentialing and your locator fee may be forfeited. Any fee that the brokerage is charged for enrolling as a vendor with the property management or apartment community will be deducted from your commission.
can i work as a property manager?
It depends. You may work as an onsite leasing/property manager for a single apartment community for whom you are an employee, not an independent contractor. Your licensed status must be disclosed and the fact that you are working on behalf of the owner and not in the capacity as a license holder. Managing/Leasing for multiple owners or multiple properties is prohibited.
CAN I WORK As aN AGENT FOR MYSELF OR MY FRIENDS/FAMILY?
No. The referral brokerage sponsorship arrangement only allows the Associate to make referrals even if the principal is the Associate, spouse, friend or family member, or a business entity in which the Associate has any ownership interest.
Have another question? Click Contact on the menu bar and send us a message!
Downloads
Company Referral Form (Fillable in PDF Software) | |
File Size: | 362 kb |
File Type: |
W9 Form for Tax ID | |
File Size: | 2718 kb |
File Type: |
Company IABS Form (Fillable Agent Info) | |
File Size: | 592 kb |
File Type: |