Inactive license (WA State); can I get paid for referrals legally?

Asked by C.s., Seattle, WA Mon Apr 28, 2008

My license is inactive; but I am still getting leads from past clients. Is there a way I can get paid legally for referrals? I am in Washington State. I've reviewed the relevant state code, but nothing jumped out at me (I may have missed it).

I heard a rumor that some brokerages let you pay a small, flat, annual fee to be a 'referral agent', assuming you don't want to actively sell or market property. Anyone know if such an arrangement exists?

csonlineorder AT earthlink Dot NET

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Tim Lenseigne, Agent, Bellevue, WA
Tue Apr 29, 2008
Here's a link to our windermere program. I know several agents who have phased out of the business and have had great success with it.
2 votes
Janelle Wilt…, Agent, Marysville, WA
Mon Apr 28, 2008
Looks like your license being inactive status is like not having a license at all which means no LEGAL paying of a referral fee.

RCW 18.85.215
Inactive licenses.

*** CHANGE IN 2008 *** (SEE 2778-S.SL) ***

(1) Any license issued under this chapter and not otherwise revoked shall be deemed "inactive" at any time it is delivered to the director. Until reissued under this chapter, the holder of an inactive license shall be deemed to be unlicensed.

(2) An inactive license may be renewed on the same terms and conditions as an active license, except that a person with an inactive license need not comply with the education requirements of RCW 18.85.095(2)(a) or 18.85.165. Failure to renew shall result in cancellation in the same manner as an active license.

(3) An inactive license may be placed in an active status upon completion of an application as provided by the director and upon compliance with this chapter and the rules adopted pursuant thereto. If a holder has an inactive license for more than three years, the holder must show proof of successfully completing a thirty clock hour course in real estate within one year prior to the application for active status. Holders employed by the state and conducting real estate transactions on behalf of the state are exempt from this course requirement.

(4) The provisions of this chapter relating to the denial, suspension, and revocation of a license shall be applicable to an inactive license as well as an active license, except that when proceedings to suspend or revoke an inactive license have been initiated, the license shall remain inactive until the proceedings have been completed.
1 vote
Ezykeysnyc, , New York, NY
Mon Mar 7, 2011
Most companies have a component designed to work with referrals from other real estate companies, we do, but if your license is inactive that means you are not authorized to conduct such transaction, being you're inactive, so it would not be considered a real estate referal .
Web Reference:
0 votes
C.s., , Seattle, WA
Sat May 3, 2008
Thank you all for your replies, references and links. Greatly appreciated!
0 votes
Lori Vandelac, , 98373
Fri May 2, 2008
It is my understanding you must have an active license to recieve a commission or referral fee. I know many companies have a small subsidiary company that is not a member of any affiliations. All you must do is pay their much small er than contract fee, keep your license hours up to date but absolutely no showings or writing of contracts. Our company is starting such a company to enable retiring agents to retire but keep their hard earned business moving.
0 votes
Greg and Gin…, , 34135
Tue Apr 29, 2008
In the state of Florida, you cannot legally get a referral fee without an active real estate license. It is a felony to do so.
0 votes
Don Dutton, Agent, Puyallup, WA
Tue Apr 29, 2008
Coldwell Banker Bain Associates has a referral organization set up for this type of activity. Contact a branch nearest you for details.
0 votes
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