What is LRA?
Licensed Referral Associates (LRA) is a real estate company for agents who currently do not want to list and sell homes but who still want to earn income referring buyers and sellers to an active working agent.
How Does It Work?
If you know anyone who wants to buy or sell real estate anywhere in the US or the world, contact us, and we will place your referral. We are affiliated with Fazendin Realtors, and we will help you make a thoughtful agent match. For out-of-area referrals, placements will be made through our affiliation with Leading Real Estate Companies of the World.
Follow our simple steps to join our team; we can transfer your license and get you up and running quickly.
You worked very hard for your real estate license, so why not put it to work while you go about your daily life?
Benefits to You
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Earn Income
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Save Money
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Keep License Active
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Responsibilities
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As a Referral Associate You…
Whenever you wish to return to active status as a real estate salesperson, we can transfer your license to Fazendin Realtors quickly and easily! |
Commission Structure
Referral fees are based on the total commission of the referred transaction side. The following calculations are based on a typical $200,000 home sale:
| Type of Transaction |
Gross Commission on $200k Sale | Referral Fee Collected by LRA | Referral Agent Split % |
Referral Agent Income |
|---|---|---|---|---|
| Local Seller Referred to Fazendin Agent |
3.3% List-Side Commission = $6,600 Gross |
25% = $1,650 Net to Licensed
Referral Associates |
70% |
$1,155 |
| Local Buyer Referred to Fazendin Agent |
2.7% Buy-Side Commission = $5,400 Gross |
25% = $1350 Net to Licensed Referral Associates |
70% | $945 |
| Outside Area Buyer or Seller Referred to Leading Real Estate Network |
3% List or Buy Commission = $3,000 Gross |
24% = $720 to Licensed Referral Associates |
50% | $360 |
* Please note, commission percentages are always negotiable and above calculations are shown for example only.
EXCEPTION: If your referred transaction is bound by a 3rd party relocation agreement with the transferee’s employer, where we are obligated to pay a contractual 3rd party referral fee, your LRA referral commission will be $250.
License Referral Associates Charges $75 per year to hold your license.
With LRA, you can avoid ALL of these other fees:
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Minnesota Realtor Dues
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National Realtor Dues
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MLS Access Fee
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Supra Key Charges
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E&O Insurances
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Business Cards, Desk/Technology fees, etc.
Save over $1,300 per year!
When it is time to renew your license with the Minnesota Department of Commerce, we make the process easy for you. We will send you a reminder that your licensing period is up for renewal. You will need to:
- Make sure you have completed the required number of hours of continuing education. To review your CE Transcript in PulsePortal click this link.
- Send a check for the advised amount payable to Licensed Referral Associates to 15550 Wayzata Blvd, Wayzata, MN 55391.
We will renew your license by the deadline and send you a copy of the renewal verification.
Continuing Education
The state of Minnesota requires all licensed real estate salespeople to complete 15 hours of continuing education every year. Typically, the have a couple required courses such as fair housing and agency law. To review your CE Transcript with the state click this link. You will need to enter your last name, license number and social security number.
When it is time to renew your license with the state, you need to make sure you have completed your required CE hours and send us a check for the applicable amount made out to “Licensed Referral Associates.” We will renew your license online with the state.
All in-house continuing education offerings are free and open to Licensed Referral Associates and their guests. Each class will be held in the Ann Brockhouse Conference Room of Fazendin Realtors, located at 15550 Wayzata Boulevard, Wayzata, MN 55391. Please call 952-473-7000 to RSVP and also if you have any questions.
How to Become a Member of Fazendin’s Licensed Referral Associates:
1. Download, complete, and sign:
2. Write a check for $75 payable to “Licensed Referral Associates”. This is your yearly dues and start up fee to be a part of the Licensed Referral Associates.
3. Mail the Independent Contractor Agreement, W-9 Form, and $75 check to:
Licensed Referral Associates
Attn: Sarah Pfeffer
15550 Wayzata Boulevard
Wayzata, MN 55391
4. Contact your Supra key administrator (if applicable) to arrange return and termination of contract. Login to their website here or call 1-877-699-6787.
5. Select your membership level below and complete the application.
6. After we successfully transfer your license, we will let you know it is all right to contact your current broker to terminate your agreement and association memberships, if applicable. Your current broker can use this form to terminate your membership in the Minneapolis Area Association of Realtors. For question #3 – Select a reason for inactivation/cancelation – please choose “Transferred to a LFRO entity.”
*If your current broker terminates you with the state before you are transferred to us, we have to complete a new license application for you and wait 5-10 days for approval.