What is Broker Compliance?
The California Association of REALTORS® (C.A.R.) holds local REALTOR® associations responsible for ensuring broker compliance with the National Association of REALTORS® (NAR) Variable Dues Formula. The formula was crafted to ensure fairness by basing member dues on the number of individuals licensed with REALTOR® principals (known as Designated REALTORS®, or DRs).
The premise is that every licensee in a firm benefits from the DR’s membership in the Association, and the DR’s dues payment should reflect all licensees in the firm—even those who are not REALTORS®.
What do I have to do to be compliant?
There are 5 possible options:
1. Joins GLAR as a REALTOR®
The licensee joins and pays REALTOR® dues and receives all the benefits of being a REALTOR®. With this option, you do not pay the nonmember assessment. How to Join: Complete REALTOR® application, have the application signed by the Broker & Pay the required fees.
2. Exemption for Referral Agents
Licensees working for a separate entity owned by the Designated REALTOR® (Broker), which is exclusively engaged in referring clients, can be excluded from your dues calculation. Any licensees identified on the Limited Function Referral Office (LFRO) Certification Form are excluded from paying REALTOR® Dues and the Designated REALTOR® (Broker) is not responsible for paying the non-member assessment.
3. Exemption for Mortgage Loan Originators
Affiliated MLO licensees in your firm may be excluded from your dues calculation. You must provide a list of the affiliated MLO licensees and certify that all of the listed licensees: (1) have an MLO license or endorsement; (2) are not engaged in real estate licensed activities except those for which an MLO is required; and (3) are not participants or subscribers in any 'Multiple Listing Service (“MLS”)'.
4. Pay a Nonmember Assessment
You, as the Designated REALTOR® (Broker), are billed a nonmember assessment for each individual who is a nonmember licensee. Even when this assessment is paid, the licensee is not a REALTOR® member and there are no association benefits or services provided. Use of the REALTOR® trademark is prohibited.
5. Drop Agent from your Brokerage
You terminate the nonmember licensee by removing the licensee from CalBRE records. This can be done via eLicensing or submitting Termination Form. You will not be charged the nonmember assessment for this licensee.
All forms can be found at https://www.greaterlarealtors.com/members/forms
You must resubmit the LFRO and MLO certifications to GLAR every calendar year.
Why do I receive out-of-compliance notices every couple of months?
The tool C.A.R. has provided to track broker compliance is refreshed weekly, when it compares CalBRE records (the names of agents affiliated with your firm) with those tagged as a paid REALTOR®, a referral agent, Mortgage Loan Originator, or paid nonmember. If agents are found on the CalBRE record for a broker’s firm but are not in any of these four categories, GLAR is required to contact the broker.
What if a Designated REALTOR® (Broker) refuses to pay dues according to the NAR Variable Dues Formula?
Full payment of dues owed is required for membership in a local Association of REALTORS® (AOR). Partial payment does not satisfy the dues obligation. If a Designated REALTOR® (Broker) refuses to pay his or her full dues under the Variable Dues Formula, he or she, along with his or her entire office, will have their local membership suspended—this is will also suspend C.A.R. and NAR membership.
If I don’t pay now, when will my services be interrupted?
Because this process has been mandated by C.A.R., if you do not pay, your account will be active only until C.A.R. notifies GLAR to suspend your benefits—this will include access to zipforms®.
I have questions about Broker Compliance, who do I contact?
Contact GLAR Member Service Team, [email protected]. Email is the preferred method of communication as it provides a record of our correspondence with you on this issue.
