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In the recent Insurance notices from RECO, there is a paragraph regarding "Parking" or being “non-active”.
The paragraph states, “There is no provision under the Real Estate and Business Brokers Act 2002 that permits a “parked” or “non-active” registration status. You must either be registered to trade in real estate – which involves renewing your registration every two years, fulfilling all education requirements and paying your yearly insurance renewal fee – or you may choose to terminate your registration.”
Of course, this information is completely correct. However, it comes down to how you define “Parking”. All though RECO does not have any system in place for registrants who which to keep their license, but become non-active, luckily there are other options. Generally, the other options call themselves "Parking" or "Shelving". There is nothing in REBBA 2002 that mandates that a registrant be a member of any Association or Board.
If you “park” your license with my Brokerage, you sign an agreement stating that you will not actively represent a Buyer or Seller. You can still refer leads to an active registrant and collect a referral commission. Since you can’t accept referral commission if you are not licensed to trade in Real Estate, you must maintain your Ontario Real Estate License, as RECO is the licensing body for your license.
What is the Benefit of “Parking”
Karma Realty Inc. is not a traditional brokerage, in that it is not a member of CREA, OREA or any real estate board. Therefore, there is no requirement to pay those associated fees. The Brokerage is also not a franchise so there are no associated fees. The monthly and annual fees are a small percentage of what you would be required to pay with a traditional Brokerage.
So, call it what you will, and RECO can say you can’t do it (because you can't with them).
When you “park” with Karma Realty Inc. , you can accept referrals, you are still licensed and you keep more money in your pocket.