Can A Real Estate Agent Work For Two Brokers?
As a real estate agent, working for two brokers may be an enticing venture to increase your earnings and gain access to a broader client base. Working for two distinct brokers can also mean access to better training materials and more resources.
But can real estate agents work for two brokers at the same time? In most states, the answer is no. Agents are generally required to work under one brokerage at a time.
However, there are nuances. For instance, Federal Laws and Regulations do not have specific directives regarding working for two brokerages. Additionally, while working for two brokerages may be allowed in some states, the practice may raise ethical challenges.
If you’re a real estate agent interested in working with two brokers, this article covers all the intricacies, benefits, downsides, and how to become a dual-affiliated agent.
Can a Real Estate Agent Work For Multiple Brokers?
In most states, real estate agents are required to work under one broker. This is because the brokers are legally responsible for them, ensuring compliance with industry regulations and standards.
However, this may differ in some states, or instance:
California
In California, agents must be affiliated with only one broker at a time. To work for more than one brokerage, agents can attain a broker’s license and present a copy to the firm.
However, though agents are restricted to working under one broker, they can represent multiple clients in different transactions as long as there’s proper disclosure and no conflict of interest.
Texas
The Texas Real Estate License Act, TREC, stipulates that an agent can only work under one brokerage at a time. An agent cannot work for two brokerages but can change from one to another by formally terminating their existing contract. This process involves notifying the TREC and updating agent license information.
New York
According to the New York State Department of State, NYSOS, a real estate agent must be licensed by only one broker at a time. Even agents who work under independent contractor status are still legally expected to be affiliated with only one broker at a time.
Florida
In Florida, agents are also expected to work under a single broker, who is responsible for the agent’s actions and conduct.
Working For Two Brokerages in Different States
Can a real estate agent work for two brokerages in different states? The answer is nuanced. Other states have different regulations for working with two brokerages.
Ideally, an agent would have to be licensed in the state first before considering joining a brokerage there. Then, the agent would be affiliated with one broker per state, adhering to the state-specific regulations on broker affiliation.
The good news is that some states have reciprocity arrangements that allow practising agents to get licensed in other states without re-taking the licensing exam. Learn more from the National Association of Real Estate Agents, NAR.
Understanding Dual Broker Arrangements
Real estate agents typically work under licensed brokers. Real estate brokers are charged with the supervision of agents to provide and ensure adherence to a legal framework for real estate transactions.
Brokerage firms also provide resources such as training, technology, and a professional network to enhance agents’ production.
Some agents may consider working with more than one broker to access more of these resources and gain a competitive edge in the marketplace.
Benefits of Working for Multiple Brokers
Added benefits of working with two brokers include:
1. Access to Different Client Pools
Different brokerages offer agents access to a pool of varying clients. For instance, one brokerage may be servicing a luxury market with high-end clients buying vacation homes or investment property. In the other brokerage, an agent may serve a different clientele, such as first-time home buyers or retirees.
Exposure to different client pools means increased chances of success, more earning potential, and increased exposure for brand building.
2. Exposure to a Wider Network of Industry Professionals
Working at two brokerages automatically translates to interacting with more industry professionals, both internally at the companies and externally, during visitations, home inspections, and other work-related activities.
Agents who work for more than one brokerage get to grow and build their professional network, which can translate to referral business, increased support, and knowledge-sharing.
3. Continous Skill Improvement
By working for two brokerages, agents negotiate their contract terms, commission splits, and other intricacies of brokerage contracts. These interactions can improve their negotiation, persuasion, and time management skills.
These valuable and transferable soft skills for real estate agents translate to better client experience and increase the success rate of real estate transactions.
4. Increased Flexibility
Working for two brokerages can mean greater flexibility in properties and clients an agent works with. Two brokerages also offer more than one technology resource option, and the agent can choose what suits them best.
As with most things, there are drawbacks to working for more than one brokerage.
Check out our blog for book picks and reading tips!
What Are The Challenges of Working With Multiple Brokers
1. Conflict of Interest
Suppose the brokerages you work with are both interested in the same property. Which interest would you represent?
Conflict of interest is a significant issue when working for two brokerages. Maintaining transparency and avoiding conflicts may be challenging or unavoidable.
2. Broker Expectations
Building broker relationships is critical for an agent’s success. With two brokers, it may be hard to fulfil both parties’ expectations. Time constraints and differing interests may make it hard to meet obligations.
3. Compliance and Licensing Issues
If the two brokers are in different states, failing to adhere to the differing compliance and regulatory directives can lead to legal issues. Additionally, professional bodies and brokerages may have different regulations that an agent must follow.
All these compliance expectations may be overwhelming and challenging to satisfy while working with two brokerages.
4. Administrative Work Overload
Administrative work is a constant, consuming task for most agents. Managing contracts, maintaining client relationships, and staying on top of commissions across different brokerages can quickly become overwhelming.
Tips for Agents Considering Dual Brokerage
Agents considering dual brokerage get the best of both worlds while also having to balance even more demanding schedules and differing broker requirements. Here are some tips to help you navigate a dual brokerage agreement:
1. Understand the Licensing Requirements and Compliance When Working With Multiple Brokers
Before committing to working with two brokers, thoroughly research and understand the legal requirements for such an arrangement. If you’ ’re considering working for brokers in two different states, ensure you have a good grasp on the state laws, governing body’s regulations and internal stipulations of your potential brokerage partner.
2. Manage Time Effectively
Working with two brokerages means an increase in client interaction, administrative work, and workload in general. Effective time management skills are essential to not only ensure that you’re offering top-notch services but also to get the benefits of increased exposure, which is increased revenues.
3. Communicate Expectations and Offer Full Disclosure on Your Dual Brokerage Affiliation
Ensure that all involved parties know of your brokerage affiliations. Establish and maintain clear lines of communication with both the brokerages and clients. Ensuring everyone is aware of your obligations can improve coordination and offer you the much-needed support you require.
4. Ensure Your Goals Align With Your Choice of Brokerage
Before settling on a partner, research how to choose a real estate brokerage to ensure that your daily activities align with your career’s end goal. Ensuring your brokerage support and aligning with your long-term goals will offer a better work experience and seamless integration into the firm’s ecosystem.
Check out our blog for book picks and reading tips!
Best Places To Be An Investment Real Estate Agent
