Frequently Asked Questions
Have questions? We’ve got answers. Whether you're considering joining or just exploring how referral brokerages work, this guide will help.
🔍 General
What is a Limited Function Referral Office (LFRO)?
An LFRO is a brokerage licensed by the state that allows agents to remain active for referral purposes only. Agents cannot engage in direct sales or transactional real estate, but they can earn income by referring clients to full-service agents.
Who is eligible to join The Referral Agent Brokerage?
We are only able to accept agents who hold a real estate license in the Commonwealth of Virginia. If you are currently licensed in Virginia and are looking to move into referral status, we’d be happy to assist with the license transfer process and welcome you to the brokerage. Unfortunately, we are not able to accommodate out-of-state licensees at this time.
💼 Working as a Referral Agent
How do I submit a referral?
We provide a simple online form or referral agreement that you complete with your client’s basic information and the agent you’re referring them to (or we can help you match them with one).
Can I choose which agent I refer my clients to?
Yes. If you already have a trusted agent in mind, you can refer directly to them. If not, we can help pair your lead with a qualified, experienced agent in the appropriate market.
What happens if my referral doesn't result in a closed transaction?
You only earn a referral fee when a transaction successfully closes. There’s no risk or penalty if a lead doesn’t convert.
📋 Licensing & Requirements
Do I need to keep up with continuing education?
Yes. You must maintain your Virginia real estate license in good standing, which includes meeting your state’s continuing education requirements.
Do you support real estate agents licensed only in DC and/or Maryland?
At this time, The Referral Agent Brokerage only supports referral agents who are licensed in Virginia. We plan to expand in the future by obtaining the necessary licensing to welcome agents licensed in Maryland and Washington, D.C. We encourage you to check back with us for updates on our progress.
Can I still advertise myself as a real estate agent?
As a referral-only agent, you cannot market yourself as a full-service real estate agent or engage in active sales. However, you can promote your referral services and make connections with potential clients.
Can I go back to a traditional brokerage later?
Absolutely. If you decide to return to full production, you can transfer your license back to a traditional brokerage at any time.
Do I need to pay association, MLS, or Realtor® dues?
No. Since our brokerage is a Limited Function Referral Office and does not belong to local, state, and national Realtor® associations, you are not required to pay association dues or MLS fees.
💰 Fees & Earnings
Are there any monthly or annual fees?
There is a non-refundable administrative fee of $100 per year, which is due at the time of joining the brokerage. You’ll also be responsible for paying the one-time DPOR license transfer fee, along with any costs associated with fulfilling the state’s continuing education requirements. Because referral agents do not participate in direct sales or transactional real estate, you are not required to carry errors and omissions insurance or cover the additional expenses typically incurred by full-time agents.
What commission will I earn from referrals?
The Referral Agent Brokerage partners with the real estate team Loughney Residential of Compass. For referrals placed with agents outside of Loughney Residential, the Brokerage retains 18% of the referral fee, and you receive 82%. For referrals placed with Loughney Residential agents, the Brokerage retains 12%, and you receive 88% of the referral fee.
How do I get started?
Getting started is easy—just reach out to us through the Contact page, and we’ll walk you through the onboarding process.
