Okay so here's my delimma ... hopefully I will have passed my state and national exam by October... and I was just informed by my husband that we will be moving to Colorado in July (6 months later).
I DO NOT want to sit thru those pre licencing classes again. Yet I understand I have to be an active realtor for 2 years in order for me to just take the Colorado State exam.
I was chatting with a chick from Ebby Holiday, the other day and she said "well we have a great referral program or partnership here, if you want to do that."
I didn't want to sound to dumb so I decided to post my questions in a few boards.
1. Is a referral partner considered an active realtor?
2. How can I work solely as a referral partner (what are the linguistics/how do you make a decent income just doing referrals)
3. I meet several people here in Texas that sell real estate in Atlanta ... a major complement to real estate are showing and open houses so how does a realtor live in one state and show in another state?
@Laticha Jones to get an referral fee (line item on settlement statement) from a real estate closing in Colorado you need to have an active real estate license in the state. Anything "off the books" is between you and the other agent. They can get in legal trouble if they are caught doing that.
If you pass the national part of the test that should carry over to Colorado two years or not. You will have to get education on Colorado law and take and pass that section of the test.
Contact the Colorado Real Estate Commission directly, tell them your situation and they can provide guidance on what you will need to do to get a license here.
Colorado has some unique terminology that you should learn regarding agents. Look at this thread to get the low down.
You can get a referral fee as long as you are not directly selling it without as license as a "Consulting Fee"
We have Referral Partners in 3 states and 4 countries overseas that we work with and pay as consultants. They are not selling the property we are but they help the investor by way of getting them info, making sure they are eligible to buy and then hand to us and we take it from there. We then stay with the buyer and help them during and after the process with on going support and management. Works great for all involved.
And you can do classes online so you wouldn't have to "sit through" them. The course I took, while technically an online course, was basically an old school home-study class. They did not measure the time spent "in class" but rather assumed that passing a test on the material meant you had spent the relevant time.
You would have to be an agent for two years only to become an employing, or managing, broker -- but not to become an associate broker. That's what you're called as a new licensee in Colorado, which does sound a lot classier than the "sales agent" or "salesman" that some states use, lol.
@Account Closed I don't mean to bust on your business model. In Colorado, if your "consultants" are qualifying a buyer (making sure they are eligible to buy) then that is considered a license activity which according to the law requires a license. I know there are lots of folks doing this sort of thing but that doesn't mean you won't be in trouble if the RE Commission checks up on you about it.
In reality, no one cares until someone complains to the Real Estate Commission. At that point the person with the license is in trouble.
IMO, much simpler to have all parties that are paid from a deal have a valid licensed.
@Bill S. well I guess it is a good thing we are not based in Colorado! That is not how it is in Indiana but I do realize laws and regulations vary from state to state.
All properties we sell we own. In Indiana you do not need a license if you are selling your OWN property only if you are acting as a sellers agent of a property you do not own. Our referral partners are not selling just referring buyers to us and we then take it from there. So the referrer is not selling anything nor are they collecting financial information. This has worked very well over several years for us, the investor and referral partner. Win win win for all involved!
@Account Closed it wasn't clear from your post where you were doing this. If you've done it a bunch there then I'm sure you know the ins and outs of your market. I just didn't want anyone reading this post and thinking it was something they could do in Colorado.
@Bill S. I understand. I have several clients from Colorado and a very good Referral Partner there.
Colorado brokers can pay referral fees to out-of-state agents. Perhaps the person @Laticha Jones was talking with didn't realize she would be moving from TX to CO and thought she was thinking of getting a CO license while still based in TX. That's the only way I can think of to make sense of the statement.