If you hold a Florida real estate license that is not currently active under a real estate brokerage but remains in good standing with the Department of Business and Professional Regulation (DBPR), your license is considered inactive. While this may seem like a passive status, it’s important to understand what it means and how it impacts your real estate career.
What Does "Inactive Real Estate License" Mean in Florida?
In Florida, an inactive real estate license indicates that while your license is valid and in good standing, you are not currently working under a broker or real estate company. Therefore, you are not legally permitted to engage in real estate transactions or collect commissions. However, maintaining an inactive status gives you the flexibility to re-activate your license whenever you decide to return to the industry.
One of the most attractive features of holding an inactive real estate license in Florida is that there is no time limit on how long you can remain inactive. You can essentially keep your license inactive indefinitely, as long as you meet certain requirements.
Requirements to Keep a Florida Real Estate License Inactive
Even though your license may be inactive, you are still required to adhere to the DBPR’s continuing education and fee requirements. Every two years, you must complete the necessary continuing education courses and pay a bi-annual fee to the DBPR to maintain your license in good standing. This ensures that your knowledge stays up to date, and you remain compliant with Florida real estate laws.
If you fail to meet these requirements, your inactive license could eventually expire or be deemed null and void, making the process of reactivating much more complicated.
Why Stay on Inactive Status?
There are many reasons why a real estate professional might choose to keep their license inactive. You may be taking a break from the real estate business due to personal reasons, or perhaps you are exploring other career options. Keeping your license inactive allows you to step away from the day-to-day responsibilities of real estate without completely giving up your credentials.
Earning Referral Income instead of being Inactive
An often-overlooked benefit of holding an inactive real estate license is the potential to earn referral income. If you don’t plan to actively work in real estate but still come across potential buyers or sellers (such as friends, family members, or former clients), you can refer these clients to a top agent and still make money.
One way to do this is by activating your real estate license with a real estate referral company like Park Place Realty Network. This allows you to refer clients to agents who are active in the market. These agents will handle the transaction, and you can earn a referral fee, typically around 22.5% of the total commission.
Unlike traditional real estate agents, those working with referral companies do not need to pay membership fees for organizations like the National Association of Realtors (NAR) or MLS (Multiple Listing Service). This makes it a cost-effective way to keep your license active and generate some income through real estate referrals.
Conclusion
If you have a Florida inactive real estate license, you’re not locked out of the real estate industry entirely. By keeping your license in good standing with the DBPR and meeting continuing education requirements, you maintain the flexibility to return to real estate whenever you’re ready. Additionally, placing your license with a referral company allows you to continue earning through referral commissions without the pressures of actively working in real estate.
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