In order for you to get or keep any commission your license will have to be active, so yes it needs to be hung with a broker. be careful as teh brokers who offer the largest split will charge you back holding fees, desk fees or what ever they may want to say it is. Most any broker will offer you 50/50 and some may go 60/40 or better if you tell them up front what your goals are. you are bringing something to them so you should have some sort of say, talk to a couple of them so you dont get taken advantage of, goo dluck with your purchase.

1%-2%
Click here for a Broker http://www.HomebuyersHope.com

Hi Betessami
Any broker will take a cut. I work for Keller WIlliams and they actually take the minimum amount from all other large brokerage houses. Cuerrently. Keller takes 30% of your commission and leaves the 70 to you. Most other brokerages I have worked with in the past take 40-70 percent for the brokerage.
I would be happy to give you more info if you shoot me an email.
Good Luck
Lou
LA Real Estate Group
Info@myLARealEstateGroup.com http://www.myLARealEstateGroup.com

The first thing to do is determine where you want to hang your license. Then if the broker accepts you into their office, you must decide and sign a contract with that office. I have never heard of keeping escrow toward a down payment, how are you going to close?? You don't get paid till the contract closes. I wouldn't try to do this as your first transaction- Why do something like this before you even get your feet wet. - You need to listen and learn-

It is highly unlikely that a lender will allow "commission left in escrow" to be used towards a down payment for your purchase so, if you have the financial wherewithal to come up with said down payment and then pay yourself back with the "earned commission", you are more likely to achieve your goal...re: reasonable split, if a good agent who would agree to do this transaction with you, they'd probably be willing to provide you a referral fee between 20% and 30% of their gross commission.

most nation wide franchised brokers will charge a much higher split for new agents. they usually looks at your previous year income from real estate brokering. if you are spanking new, most of them will only give you a 70% split plus other office fees, some will only give you 60% split. There are a few national franchise that charges only flat fee too, but they still will look at your previous year production. national franchises will usually charge you way more miscellaneous fees.

if you do not plan to do it full time and just want to save some money for your own transaction it would make more sense for you to join a smaller local broker. some of them may have a few franchises locally. For your personal transaction they may not charge any split. and for regular transaction they may give you a 80% split or 100% split and just charge you on a flat fee for each transaction. maybe couple hundreds to $1000. however if you are really new to it and do not know anything about real estate transactions you may have to partner up with an in house more experienced agent to teach you on the first transaction. if you do that then you will split your commission with the trainer after splitting with your company. But after the first transaction your split will go back to the normal 80% or 90%

I have personally worked for Coldwell banker, help U Sell, and local brokers and I have talked to owners of most of these nationwide brokering companies. here are some the differences among these brokers. this is just a general picture of each companies. each franchisees may be managed differently:

Coldwell Banker:
pros:
1. nationwide brand
2. usually has in house mortgage companies
3. does both commercial and residential transactions
4. broker participated advertising

cons:
1. training program is not that great
2. split is low for new agents. maybe 60% or 70% miscellaneous fees is reasonable
3. no sales leads, but you do get floor time to answer phones

Remax:
Pros:
1. nationwide brand
2. good training program
3. flexible agent options: straight commission, flat fee based, desk fee based and more
4. pretty strong in both commercial and residential

Cons:
1. fees are a little on the high end
2. no floor time. no sales leads

Keller Williams:
Pros:
1. probably the best training program in the industry
2. new agent referral split. if you refer new agent in you get split too
3. Pro Christian
4. fee is reasonable

cons
1. franchise location maybe a little less than other national brands.

Help U Sell
Pros:
1. free sales leads
2. easier to get listing because of low brokering commission
3. training program is pretty good

cons:
1. low split and low commission because fee charged is very low.

local mom and pop brokers:
pros:
1. potentially high commission split without regard to your previous income. 80% to 90% or 0% commission plus a set fee
2. very little miscellaneous fees and charges

Cons:
1. no perceived national brand recognition.
2. quality of training is not uniform.

You found the house; you're licensed- call around and ask if a broker is interested in a split equitable to YOU. It's not rocket science, nor is it potential financial disaster for a broker (with O&E paid- make sure the broker provides that, or advises you to obtain your own, and get it).
If you can facilitate the transaction with efficiency (and speed), take the best split, and add an attorney review.
Best to you.

Hi Betessami,
I am not too familiar with CA real estate law any longer (left in 2001), but more than likely you will not be able to do what are wanting to do without hanging your license with a Broker, unsure if the lender would allow this either. Best of luck.

in most states, in order for you to get a commission, you have to work under a broker. Unless you do that, you wont get a commission anyway....also, the commission is paid AFTER you purchase your home, there for that would not be considered income

To be honest with you most lender's will not allow you to use commission that you will make on a transaction for your purchase right at that time. Lending has gotten really difficult and they have cracked down on that. Also if you only have a sales persons license you have to have it hung with a broker in order for you to even be paid commission.

you don't mention why your license is inactive, but if you have recent experience you will easily be able to find a broker who will put you onso you can capture a commission.

the escrow will have to issue commissions, you cannot use future income (a commission) to qualify for a loan today.

if you don't have recent experience you won't be doing everything yourself...there is a file to be managed...the sponsoring broker will want a bigger piece of the action as he or she will be doing the work to keep the deal compliant.

you only have to disclose your licensed status, active or not, if you are working for a commission.

Abraham Lincoln said: “a Lawyer who represents himself has a fool for a client.” If you really want to save money on your purchase—find an honest broker to represent you—call me, I am a honest Broker and can help you.

But if you insist on represent yourself—buy a For Sale By Owner—just be careful, a lot of people have gotten into trouble because the don’t know all the real estate laws and disclosures—the Laws were written to protect the consumer—like you. Just because someone has taken a class and passed a State exam does not mean they know the intricacies of a real estate transaction.





For a free list of Bank Owned and Government Owned Properties
visit my website: http://www.ReoLicensedSpecialist.com

I see that you have asked this question two different ways but the answer is the same. You can not receive commission on a property you are personally purchasing. The lenders will not allow it now more then ever. You can ask the seller for buyers credit for closing cost but it is now only 1.5 to 2 %.
Also if your license is not hung with a broker it is not a valid license. You can act as a buyer representing him self but you are not an agent. You will also have to disclose that you have taken and passed the Real Estate test in California but have not hung your License with a broker. As far as shearing the commission. That has nothing to do with sharing that is asking for a kick back. You are asking the agent to rick there license and brake the law. Having taken the test you should know this...

All the points made are very important and should be considered. Experience is key. Having said that, you do not need to hang your license anywhere to act as your own agent. Just like any buyer can represent themselves in their own transaction. You will likely have to negotiate the terms of the agreement and will not be able to apply a commission to the transaction. Most lenders don't allow this, but will allow a credit from the seller, usually up to 3%.

Good luck,

Ray

Yes, your broker will want part of your commission if you are working out of their office. There are some brokerages that have a better split then others. The best splits go to the most experienced agents.

Do you only want to use your license for yourself? This can be complicated. Just to align yourself with a brokerage will require $$. If you only want to do one transaction, in the end it may not save you anything. If you want to develop a serious career, I suggest you talk to KW. The split is 70/30, which is exceptional to still have all the services that they offer - training, mentorship, business development resources, etc. If you only want to do one transaction, you can find some loosey goosey brokerages out there that will take up front fees, may not require participation in REALTOR associations, etc. and they will give you 100% split... all of this can save you a great deal of money, in the short run. Another alternative is to hang your license with a referral company, avoid many of the fees, and "refer" yourself to another agent for a split of their commission. I don't know if any of these things will make sense to complete only 1 transaction. I am not sure why you got your license. To have a career or instead of saving for a downpayment?

In any case... I really have to tell you that you should have an experienced agent helping you, today's market is CRAZY. I know from experience the licensing courses do not teach you about navigating the market or any "how to"s...

But it sounds like you plan to waive this right to keep the commission. It would be like a doctor doing his first surgery on himself without techs, nurses, and other professionals there to help him. The up side? He's not paying anyone else to help him. The down side? He may not survive, and his family could be billed for the use of the surgical room.