How to Change Real Estate Brokerages in the State of Texas

Making a switch to a new Broker is not always an easy decision, but the process doesn’t have to be that difficult if you know what you are doing.  The four basic steps are:

  1. Requesting sponsorship from your new Broker on TREC’s website
  2. Contacting your local board or association of Realtors 
  3. Letting your current Broker know that you are leaving per your contractor agreement with her or him. 
  4. Signing an agreement with your new Broker. 

Leaving Your Current Brokerage

First, you don’t have to close all your deals before making a move to a new Broker.  This is the most asked question I get from agents that are looking to make a switch in Brokerages.  Most Brokers are great people and understand that your circumstances and life changes.  Although we have had a few agents retire with us, it is not uncommon for agents to move to other firms at some point in their real estate careers.  Most Brokers will allow you to finish you deals with them when you leave, just as you were an agent with their firm. 

Your active listings may be transferred to your new Broker if they are not under contract and with your Broker’s permission. This process is done with a form from your local MLS board that must be signed by the Broker releasing the listing and the new Broker accepting the listing. 

Most Brokerages will require some sort of process by which to notify them of your leaving. Once you have interviewed and decided on your new Brokerage, send your old Broker notice if they require you to.  At the very least, an email should be sent to let them know you are leaving and on what date so they can update their records.  Keep in mind that your email and contacts could be the property of the previous Broker, so be sure to have backed up your information prior to giving your notice.  Some Brokers may cut off your email immediately!

Requesting Sponsorship from Your New Broker

You will need to request sponsorship from your new Broker on the Texas Real Estate Commission’s website.  If you have not registered with (TREC) online, I suggest you create an account at your earliest convenience. This will greatly assist you with your license for renewals and updating your contact information easily in addition to allowing you to request and terminate a Broker sponsorship.

Once you have created a login on TREC’s website, you may request sponsorship from your new Broker.  If it is a corporate Brokerage you will request sponsorship from the corporation or LLC and not the Broker of record.  For example, we operate under Central Metro Realty LLC; although I am the Broker I have no licensees under my personal Broker’s license, only under the entities that I sponsor.  Your request for sponsorship from your new Broker will not be complete until you have made payment to TREC in the amount of $20.66.  You can do this at the end of the process, but before you log out.  Once your new Broker accepts your license, you will be official!

If you absolutely refuse, don’t like or just don’t want to use the online portal to make the request for sponsorship, you may use the paper form to transfer your license as well.  This can be found on TREC’s website for you to download.  This form will need to be signed by the new Broker and mailed to or dropped by TREC’s main office in Austin. The cost for mailing in the form is $40.00 whereas the online method is only $20.66.

Update Your Brokerage Information with Your Association of Realtors

Our firm currently hold memberships in six different local Associations/Boards of Realtors.  Each one of these differs in cost and internal processes.  You will need to contact your local Association/Board to make the switch to your new Brokerage.  Many larger MLS systems allow you to do this all from their website with your login.

Sign an Agreement with Your New Broker.

Each Broker has their own set of documents to sign.  The Texas Association of Realtors offers many of these forms, but you should make sure that you know what you are signing.  Things that you want to pay particular attention to are the split agreement, duration of the agreement, and what happens to your deals and prospects when you decide to leave.

I hope this helps make things a bit clearer and less scary for making a change in Brokers.  Switching Brokerage firms in our industry is not un-common, that is until you find a firm like Central Metro Realty.  Doing your own due diligence, if you compare what we offer our agents to what you’re getting from your current brokerage you’ll be left scratching your head. Come over and retire with us.

Central Metro Realty is an Austin-based real estate firm that Brokers throughout the state.  To find out how to work with us, check us out here or call Jason on his cell phone at 512.921.7537.

On the search for a Texas real estate brokerage that allows you to earn more in your real estate career? We have agents across the state – Austin, San Antonio, Houston, Dallas, Waco, Killeen – and are members of 9 MLS systems – allowing you to take your business to every corner of the state!


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