Under the Individual Sponsorship option (Option 1), How do I receive my commissions?
Since Southwest Realty Advisors, LLC is the sponsoring broker of record who holds your salesperson license; per the State of Texas requirements any commissions earned by the salesperson are paid to the sponsoring broker of record. However, In order to obtain your commission the quickest way possible, we authorize you to receive your commission payable at closing. The steps for this are as follows:
1) Approximately 1-2 weeks prior to closing we as that you fill out our Company "CDA" form(Commission Disbursement Authorization) which is available within the "Agent Portal" in our Company Form Library. The CDA form identifies all the applicable details of the pending transaction such as the Buyers, Sellers and Closer at the Title Company.
2) Once the CDA has been filled out you will then be asked to upload the CDA along with a copy of the contract in the Closing Calendar section of the "Agent Portal" as well as indicate your closing date on the Closing Calendar.
3) Once all the applicable documents have been uploaded we review the documents and sign the CDA authorizing you to be paid at closing directly from the Title Company. We then forward the signed CDA over to the indicated closer at the Title Company as well as cc you on the email so all parties are on the same page.
Should the Title Company not allow a disbursement in your name, once we receive the funds/check we will deposit the commission check in our company operating account. Once this clears we will write you a check for 100% of your commission. Please note, the only time this usually happens is when the CDA has not been uploaded prior to closing. In this case the title company has no instructions and therefore the commission checks get sent directly to the Brokerage on Record.
Under the Individual Sponsorship option (Option 1), who is listed as the Listing or Other Broker on the Texas Contracts?
Southwest Realty Advisors, LLC is acting as your sponsoring broker. Any contracts should reflect this.
Under the LLC option (Option 2), who is listed as the Listing or Other Broker on the Texas Contracts?
Your LLC name will be listed as the Listing or Other Broker.
Under the Individual Sponsorship option (Option 1) how are my listing signs displayed?
The Texas Real Estate Commission requires the name of the listing Broker to be displayed on all signs (TRELA 1101.652(b) (23). You can still include your and contact information, but must also include Southwest Realty Advisors, LLC (your sponsoring broker) somewhere on the sign. We do provide and allow the use of our signage & logo for Southwest Realty Advisors in various formats (jpeg, png, svg, eps etc.) which can be used how you see fit for your marketing needs.
Under the LLC option (Option 2) how are my listing signs displayed?
Your LLC name can be displayed on all signage and marketing material since your LLC name will be your “sponsoring broker” of record. We act as the individual sponsor and identified as the designated office on the TREC application and you are the owner and manager of the LLC. You can choose to create your own logo and brand your own business as you see fit for your marketing needs. A signage example is as follows: For Sale Sign (LLC).
Is Errors & Omissions Insurance provided?
Yes and No. We do carry our own E & O Insurance which is a blanket coverage based on total company revenues and applies to those agents falling under sponsorship Option 1, who are working under/sponsored by our LLC, Southwest Realty Advisors. Those agents who choose to form their own company/LLC under Option 2, are not covered under our policy. In this scenario you would have to provide your own E & O insurance policy to obtain a Broker’s License.
Can I take my LLC name with me should I no longer be sponsored?
Yes, your LLC is your company. You can do as you like with it.
Is office space provided?
No, your physical office address is determined by you. Many agents may choose to open their own offices or work from home. If you intend to conduct business from an office location where you meet with the public to transact business, TREC requires the broker (Southwest Realty Advisors, LLC) to obtain a Branch Office license for this location. (Rule 535.112). The fee for this application is $20. This applies to Sponsorship Option 1. However, under Sponsorship Option 2 if you intend to open multiple office locations a Branch Office license will also be required. Please notify us if this is the case and provide the appropriate application fees and we will fill out the required forms and submit to TREC.
How long am I obligated to stay sponsored?
There are no contract or time frame requirements. You can leave at any time. Simply inform us of your desire to no longer remain sponsored and we will fill out TREC form Notice of Salesperson Sponsorship Termination.
What if my local Board of Realtors requires my sponsoring Broker to be a member so I can retain use of MLS services etc.?
Our company is always looking to expand into new markets within the State of Texas. We are currently members of the “Austin Board of Realtors”, “Houston Association of Realtors”, “MetroTex Association of Realtors”, “Greater Metro West Association of Realtors”, “North Texas Commercial Association of Realtors”, “Ft. Hood Area Association of Realtors”, “Temple-Belton Board of Realtors”, “Lubbock Association of Realtors” , “San Antonio Board of Realtors”, “Brownsville South Padre Board of Realtors”, Stephenville Association of Realtors”, “Greater El Paso Association of Realtors”, "Highland Lakes Association of Realtors" and the “Odessa Board of Realtors”. If we are not currently a member of your local Board of Realtors we will explore the feasibility of joining at your request.
If I already have an LLC formed and a sponsoring Broker acting as the designated officer for my LLC, what is the procedure to transfer Brokers?
You simply fill out the Change of Designated Officer or Manager form and have your current Broker and new Broker sign the form.