If you’re a real estate professional in Illinois looking for flexibility in managing your real estate license, you may have come across the term “Illinois Real Estate License Holding Company.” These companies allow licensed agents to keep their real estate license active without being actively involved in real estate transactions or working under a brokerage. But how do you join one? In this blog post, we’ll cover the essential steps to help you understand the process of joining an Illinois real estate license holding company.
What is an Illinois Real Estate License Holding Company?
An Illinois real estate license holding company is a specialized service that provides a solution for licensed agents who want to maintain their license but are not currently practicing real estate. It allows you to park your license with them, avoiding the costly overhead of working under a brokerage while still keeping your license active. This is especially helpful for individuals who may be transitioning careers, taking a break, or simply do not want to be tied to a traditional real estate brokerage.
Why Join a Real Estate License Holding Company?
There are several reasons why joining a license holding company might make sense for real estate professionals in Illinois:
- Maintaining Active Status: Even if you’re not actively working in real estate, keeping your license active ensures that you don’t need to re-qualify or go through the hassle of getting licensed again when you’re ready to return.
- Cost Savings: When you’re not engaging in real estate transactions, working under a traditional brokerage may not be financially viable due to monthly or yearly fees. A holding company typically charges a much lower fee.
- Flexibility: You may want to step away from real estate temporarily for personal reasons or to pursue other career opportunities, and a holding company allows you to pause your real estate activities without giving up your license.
Steps to Join an Illinois Real Estate License Holding Company
- Research and Select a Reputable Company
The first step is to find a reliable Illinois real estate license holding company. Look for companies with a solid reputation, transparent fees, and services that meet your needs. Remember to include both annual fees and commission splits in your search, especially if you plan on submitting a lot of referrals. NextPath Realty currently has an annual fee of $95 and you take home 85% of your referral fee, which is one of the most generous splits in the industry. - Confirm Eligibility
To join a holding company, you must have an active real estate license in Illinois. If your license has expired or is inactive, you may need to renew or reactivate it before you can transfer it to a holding company. Illinois requires real estate professionals to complete continuing education (CE) credits, so make sure you’re up-to-date with these requirements as well. - Complete the Necessary Paperwork
Once you’ve selected a company, you’ll need to fill out their application and any required paperwork. This usually involves completing a transfer through the Illinois Department of Financial and Professional Regulation (IDFPR) online portal and paying the state transfer fee, which is currently $35 as of the date of this post. Some companies may also require a small transfer fee. NextPath Realty does not charge a transfer fee and the entire process is completed online. - Pay the Company Fees
Most license holding companies charge an annual or monthly fee to hold your license. This fee is usually much lower than what you would pay to a traditional brokerage. Be sure to understand the payment terms before committing, and ask about any additional fees that may apply. Our current fee is $95 a year. - Stay Compliant with Continuing Education
Even though you’re not actively practicing, Illinois still requires you to complete continuing education (CE) courses to maintain your real estate license. Your holding company may provide reminders or even resources for meeting these requirements. - Transfer Your License Back When Ready
When you’re ready to return to active real estate practice, you can easily transfer your license back to a brokerage. The process usually involves completing a transfer through the IDFPR and notifying the holding company.
Conclusion
Joining an Illinois real estate license holding company is a convenient and cost-effective way to maintain your license during periods of inactivity. Whether you’re transitioning careers, taking a break, or simply not actively selling, holding companies offer a flexible solution to keep your Illinois real estate license active. By following the steps outlined above, you can join a holding company with ease and ensure your license remains in good standing until you’re ready to return to real estate. Please be sure to contact us if you have any additional questions.