Frequently Asked Questions
LLC Sponsorship
An LLC is created with the Secretary of State and then licensed by TREC as a Business Entity LLC Brokerage. One of Drop Your Broker’s principals serves as the sponsoring broker to the LLC and the LLC serves as broker to the agents. The owner (usually the person making this request) owns the LLC/Brokerage. Drop Your Broker has no ownership in the LLC. A Drop Your Broker’s Principal is listed as a managing member (this is required by TREC) and serves as sponsoring broker for you.
There is an optional one-time set-up fee of $1,000, which includes the Secretary of State’s filing fees and TREC’s filing fees. The remainder is for Drop Your Broker’s time for licensing the LLC, setting up the LLC’s MLS access with your local board of realtors, providing an Office Policy Manual, and other materials Drop Your Broker has prepared. We then charge $199 per month for the first agent and $100 per month for each additional agent. If you would prefer to do the setup yourself, then that is an option. You may use our Starting a New Business Guide for the process. We will help you each step along the way!
The monthly fee of $189 commences once you are ready to move your license under your new TREC LLC.
The process takes approximately four weeks to complete. We suggest agents “stay put” with their current broker until their new company is ready and licensed. If you are in a situation and need to move, Drop Your Broker will sponsor you under Our Texas Real Estate until your company is ready and licensed.
The owner/manager will be responsible for procuring their own E&O insurance. Providing proof of E&O Insurance is required as part of the TREC BE LLC application submission.
The owner owns 100% of the LLC as well as its listings, buyers, leads, and commissions. Pursuant to TREC rules, the broker acts as a manger of the LLC so that they can act as sponsoring broker.
TREC will contact both of us with company matters. They will contact you for your individual matters.
Your LLC name will be listed as the Listing or Other Broker.
You generate your own CDA. We are paid through monthly invoicing/credit card payment process. However if a title company wants a document explaining our business relationship, we can provide that upon request.
Yes, your LLC is your company name.
Yes, you will have input control. You will be the “Office Manager,” which allows you complete control over your listings.
No, you determine your physical office address. Under the LLCSP, if you intend to open multiple office locations, a Branch Office license will also be required. Please notify us if this is the case and provide the appropriate application fees and we will fill out the required forms and submit to TREC.
We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.
Our Texas Real Estate Plans
From a TREC perspective, your license will be transferred to the Our Texas Real Estate Company. You will sign an Independent Contractor Agreement and annually sign a Statement of Understanding. So you will not be an employee of Our Texas Real Estate.
Plan 1: OTRE charges a one-time setup fee of $200, an Annual Admin Fee of $250 and, a monthly fee of $209 with NO transaction fees. Plan 2: OTRE charges a one-time setup fee of $200, an Annual Admin Fee of $250, Per transaction fee applies.
Several weeks prior to closing you will fill out OTRE’s Commission Disbursement Agreement (“CDA”), which is available within the “Agent's Portal”. Once the CDA has been filled out and submitted, along with a copy of the executed contract, OTRE reviews the documents and signs the CDA authorizing you to be paid upon closing. You will be paid your commissions directly from the title company.
Our Texas Real Estate will provide a digital file containing artwork for your Our Texas Real Estate business cards and signs. You may purchase these products from the supplier of your choosing. We also provide a website landing page customized with your picture, bio and contact information.
Our Texas Real Estate is acting as your sponsoring broker. Any contracts should reflect this.
Our Texas Real Estate asks for a one year commitment.
We do not have any minimum sales requirements. It is up to each agent as to whether this is a full time or part time job for them.
Sales agents are covered under Our Texas Real Estate's E&O Insurance. The cost is included in the monthly or annual fees paid.
We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.
Our Texas Real Estate has membership in the following Realtor Associations: Houston Area Realtors, Austin Board of Realtors, Dallas - MetroTex, Lubbock Association of Realtors, Greater El Paso Association of Realtors, Corpus Christi Association of Realtor, Central Texas Association of Realtor, Amarillo Association of Realtors, Collins County Association of Realtors, Wichita Falls Association of Realtors, Kerrville Board of Realtors, and Fort Hood Association of Realtors. As we enter a new area of Texas we happily join the necessary boards. We maintain our membership and provide MLS access, however the agent is responsible for their own membership dues and any lockbox or security key fees.
No, you determine your physical office address. Agents may choose to open their own offices or work from home. If you intend to conduct business from an office location where you meet with the public to transact business, TREC requires the broker (Our Texas Real Estate) to obtain a Branch Office license for this location. (Rule 535.112). The fee for this application is $20.
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please visit our sister site www.ourtexasrealestate.com for more info
