All your questions should be answered here. But if they are not, we are only an email or phone call away!
You can read about the process of terminating from your current Brokerage here.
- What is "Parking"?
- Why would I park my Real Estate license?
- How much does it cost to maintain my license when it's parked?
- Do I still have to take my Continuing Education credits?
- Do I still have to pay RECO Errors and Omissions Insurance?
- I am a new Registrant. How do I Register my license?
- I work for a Brokerage currently. How do I transfer my license?
- My license has been lapsed more then 60 days, but less then 2 years. How do I transfer my license?
- Can I still sell Real Estate?
- How do I let people know that I can still refer them?
- How much referral commission can I charge?
- To whom should I refer my friends, family or past clients to?
- How do I get paid my Referral fee from you?
- For how long can I park my license?
- I want to go back to selling actively. How do I do that?
- My license has been lapsed less then 2 years, can I still re-instate and park my license?
- How do I take my educational courses?
- I don't live in the Ottawa area. Does that matter?
- Do you have a commission trust account?
- Can I do an Open House for another Rep?
- I know someone else who could use your services, what's this $25 referral all about?
Q. What is "Parking"?
A. Sometimes called "Warehousing" or "Shelving", "Parking" is the term used for registering your Real Estate license with a Brokerage that does not belong to a Real Estate Board or the Associations (CREA and OREA). You are still a fully licensed Registrant with RECO. By parking with us, you do not have to pay any of the associated dues or fees related to the Boards or Associations. You also do not have access to MLS and you cannot call yourself a REALTOR®.
Q. Why would I park my Real Estate license?
A. There are many reasons to park your Real Estate license. Here are some of the reasons Salespeople and Brokers come to us:
- If you and your spouse are both licensed and working with a traditional Brokerage, one of you can park your license to minimize fees. REMEMBER - You will only be able to perform the activities an Unlicensed Assistant would perform for your spouse. You may not do things like Open Houses or anything that constitutes representing a Buyer or Seller for a Trade in Real Estate by the definitions. See the Why on this from RECO here!
If you are new to the business and things have been slow to start, sometimes a salaried position as an administrator or assistant to a team can help you become acclimatized. If you park your license, you will be ready to launch when the time comes. REMEMBER - You will only be able to perform the activities an Unlicensed Assistant. You may not do things like Open Houses or anything that constitutes representing a Buyer or Seller for a Trade in Real Estate by the definitions. See the Why on this from RECO here!
- If you have just obtained your real estate license and you are not ready to jump in with both feet.
- If you are winding down your business, thinking of retirement.
- You are only selling part time and the commission you end up with is not covering your Brokerage fees and associated costs.
- If you just need a break from mainstream real estate you should consider parking your license.
- You want to go on a maternity leave to care for a new addition.
- You or a family member have an illness that requires you to take a break.
- If you are moving to another province, but are not sure if you will be coming back to Ontario.
The reasons people park are varied and these are just a few. If you want to find out more, contact us!
Q. How much does it cost to maintain my license when it's parked?
A. Karma Realty charges $99 + HST annually.
RECO license renewal fees are payable every 2 years and are currently $390 for all licensees.
RECO Insurance is $440 annually.
You must still completed your Continuing Education credits every 2 year cycle including the RECO update course. The bundle cost is $44.
The 2017 fee schedule is available here
Q. Do I still have to take my Continuing Education credits?
A. Yes. RECO requires all Registrants to take the mandatory credit courses including the RECO update course.
Q. Do I still have to pay RECO Errors and Omissions Insurance?
A. Yes. All registrants with RECO must pay the Insurance of $440.00 annually. Insurance is due on August 15th of every year and is in force from September 1st until August 30th of the following year. If you sign up mid-year, your insurance fee is pro-rated.
Q. I am a new Registrant. How do I Register my license?
A. New Registrants must submit an application to RECO through an Ontario brokerage within one year of completing either the General or Commercial Real Estate Transaction course. The fee charged by RECO to instate your license is $390 plus a $200 application review fee plus your insurance fee (which is pro-rated depending on when you register - the maximum is $440.00 per year). You must apply for a police check for employment, cost $30 - $50. and mail the original copy to RECO. You will be starting a two year articling phase and must complete the three required courses in order to renew your registration at the end of your two year cycle. For subsequent two year cycles you need to complete 24 hours of education including the mandatory RECO update.
Here are the steps, simply put:
- Get a police check for Employment done at your local OPP station
- Complete our Registration form and send it to us. Pay us your $99 + HST.
- Create a new RECO MyWeb Account! Fill out the New Registrants form. Our Brokerage number is: 4778739.
- Send the completed RECO application, a check for $590.00 (payable to RECO) and your original police check to RECO
- We will notify you when you are registered with us
Q. I work for a Brokerage currently. How do I transfer my license?
A. The process is simple and we have developed easy to follow, step-by-step instructions. Basically, these are the steps:
- Send us your completed Registration form.
- Send us a copy of your termination letter for your current Brokerage. (must be within 60 days of applying for a transfer)
- Pay us your $99 + HST for your annual parking fee. You also need to pay the RECO Transfer fee of $100.
Q. My license has been lapsed more then 60 days, but less then 2 years. How do I transfer my license?
A. It is a fairly straight-forward process. Here are the steps you need to take:
- Log into your RECO MyWeb Account and fill out the RECO Reinstatement form. Our Brokerage Number is: 4778739.
- Get your continuing education credits up to date.
- Get a police check for employment from your local OPP station.
- Send RECO your original Police Check.
- Send us your completed Registration form.
- You will be billed by RECO for your insurance. Insurance is $440/year, but is pro-rated from when you register.
- Pay us your $99 + HST for your annual parking fee. You also need to pay the RECO Reinstatement fee of $590.
Q. Can I still sell Real Estate?
A. No. Once you are parked, you cannot be directly involved in a transaction. Since you do not have access to MLS, market statistics or any marketing material, you would not really be the best person for the job of selling a home for a friend, family member or past client. You can refer any Buyer or Seller leads to a Sales Representative or Broker and get a referral fee from them. You can indicate to your Buyer or Seller that they do not have to pay you anything for finding them a great person to work with and that the Brokerage will pay your referral commission. Make sure it is clear to the Buyer and/or Seller that they will be a client of the Brokerage and not your client. You should have the referring Brokerage sign a referral agreement before sending the client information to make sure that referral amounts are clear to all parties.
Q. How do I let people know that I can still refer them?
A. You can purchase business cards and an email address from us if you would like to be able to hand out cards. Referral income can be a terrific secondary, or even primary, income. You can order cards and setup an email address when you initially sign up, or later. Whichever you'd prefer. Click here to see the design options for cards. Click here to order cards and set up your email now!
Q. How much referral commission can I charge?
A. The referral amount can be negotiated between you and the Sales Representative or Broker to whom you are referring the client. Referral amounts typically range from 25% to 50% of the commission paid. You can not accept Bird-Dog fees or gifts. We highly recommend that you complete a referral form, in writing, when sending a referral. That way all parties are clear with regards to the amount.
Q. To whom should I refer my friends, family or past clients to?
A. You should refer them to someone that you trust to look after them. If you are out of touch with the industry, you can contact us for a referral contact by completing this form. We are not out of touch.
Q. How do I get paid my Referral fee from you?
A. Your referral fee is paid on a 90/10 split. When a referral amount is received in our offices, we will mail you a cheque for the entire amount less a 10% processing fee. There is no minimum transaction fee. If the commission cheque is $100.00, you get $90.00.
Q. For how long can I park my license?
A. there is no time limit. As long as you pay the proper fees and maintain your educational requirements (or any requirements RECO may add in the future), you can stay with us as long as you like. If you decide to leave, all you have to do is send us a signed termination letter. We will wish you well.
Q. I want to go back to selling actively. How do I do that?
A. That's great! All you have to do is send us a signed termination letter. We wish you all the best in your future endeavors! We can help you pick a Brokerage to go to if you are not sure.
Q. My license has been lapsed less then 2 years, can I still re-instate and park my license?
A. If your license has lapsed, and it has been less then 2 years, you have to fill out a RECO re-instatement form here. Complete the form and the required $390.00 fee for RECO, you will also be billed for your RECO Insurance. We will invoice you for your annual fees to park with us.
Q. My license has been lapsed over 2 years, can I still re-instate my license and park it with you?
A. Sadly, if your license has been lapsed over 2 years, you are required to start at the very beginning and take all the Registration courses over. That's why we suggest people park their license if there is any possibility they may return to the business.
Q. How do I take my educational courses?
A. RECO provides the necessary courses to maintain your Registration. You can access the courses and pay for them from RECO ($44) and OREA and any other CE provider.
Q. I don't live in the Ottawa area. Does that matter?
A. We hold licenses for registrants from all over Ontario. As long as you have a Canadian residence and an address for service in Ontario (which can be our office address), your Ontario real estate license can be parked with us.
Q. Do you have a commission trust account?
A. We are a RECO licensed and registered Brokerage, subject to all the rules and regulations. We maintain all the required accounts and insurance coverage.
Q. Can I do an Open House or be an Assistant for another Rep working for another Brokerage?
No. The RECO rules are clear. You may only be paid by the Brokerage that you are registered to. You may only perform the tasks that would be assigned to an UNLICENSED assistant.
Here is a link to a the RECO rules on this matter. Essentially, this publication states:
"For any activity that falls under the definition of “trade”, any assistant must be registered under the Act to the same brokerage as the sales representative or broker and can only be paid by the brokerage to whom he or she is registered for undertaking such activity."
A trade in Real Estate is defined as: "
" “trade” includes a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase and sale, exchange, option, lease, rental or otherwise and any offer or attempt to list real estate for the purpose of such a disposition, acquisition or transaction, and any act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of any disposition, acquisition, transaction, offer or attempt, and the verb “trade” has a corresponding meaning;"
Q. I know someone else who could use your services, what's this $25 referral all about?
A. We pay a $25 Referral fee to ANYONE who refers a licensed Sales Representative or Broker to us. The cash referral is paid after the Sales Rep/Broker has been with us 30 days and has paid their annual fee. This is not money from a trade in Real Estate so anyone is eligible to receive the referral amount as long as their name is provided at the time of Registration by the Sales Rep/Broker.