Frequently Asked Questions

LLC Sponsorship

How does it work?


An LLC is created with the Secretary of State and then licensed by TREC as a Business Entity LLC Brokerage. One of Drop Your Broker’s principals serves as the sponsoring broker to the LLC and the LLC serves as broker to the agents. The owner (usually the person making this request) owns the LLC/Brokerage.Drop Your Broker has no ownership in the LLC. A Drop Your Broker’s Principal is listed as a managing member (this is required by TREC) and serves as sponsoring broker for you.




What is the cost of an LLC Sponsorship by Drop Your Broker?


There is an optional one-time set-up fee of $1,000, which includes the Secretary of State’s filing fees and TREC’s filing fees. The remainder is for Drop Your Broker’s time for licensing the LLC, setting up the LLC’s MLS access with your local board of realtors, providing an Office Policy Manual, and other materials Drop Your Broker has prepared. We then charge $199 per month for the first agent and $125 per month for each additional agent. If you would prefer to do the setup yourself, then that is an option. You may use our Starting a New Business Guide for the process.




When Does the Monthly Fee Start?


The monthly fee of $189 commences once you are ready to move your license under your new TREC LLC.




How long does it take to set up an LLC?


The process takes approximately four weeks to complete. We suggest agents “stay put” with their current broker until their new company is ready and licensed. If you are in a situation and need to move, Drop Your Broker will sponsor you under Our Texas Real Estate until your company is ready and licensed.




What about E&O Insurance?


The owner/manager will be responsible for procuring their own E&O insurance. Providing proof of E&O Insurance is required as part of the TREC BE LLC application submission. TREC.




Does Drop Your Broker own any part of my entity?


The owner owns 100% of the LLC as well as its listings, buyers, leads, and commissions. Pursuant to TREC rules, the broker acts as a manger of the LLC so that they can act as sponsoring broker.




How are official items from TREC handled?


TREC will contact both of us with company matters. They will contact you for your individual matters.




Who is listed as the Listing or Other Broker on forms?


Your LLC name will be listed as the Listing or Other Broker.




Who generates the CDA’s?


You generate your own CDA. We are paid through monthly invoicing/credit card payment process. However if a title company wants a document explaining our business relationship, we can provide that upon request.




Can I take my LLC name with me should I no longer be sponsored?


Yes, your LLC is your company name.




Would I have control over the MLS input?


Yes, you will have input control. You will be the “Office Manager,” which allows you complete control over your listings.




Do you provide office space?


No, you determine your physical office address. Under the LLCSP, 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.




Do you have any ethical requirements for sponsorship?


We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.





Our Texas Real Estate Plans

Will I work for Our Texas Real Estate Company?


From a TREC perspective, your license will be transferred to the Our Texas Real Estate company. You will sign an Independent Contractor Agreement and annually sign a Statement of Understanding. So you will not be an employee of Our Texas Real Estate.




How much is the Sponsorship by Our Texas Real Estate?


Plan 1: OTRE charges a one-time setup fee of $200, an Annual Admin Fee of $250 and , a monthly fee of $209 with NO transaction fees. Plan 2: OTRE charges a one-time setup fee of $200, an Annual Admin Fee of $250, Transaction Fees, see the Transaction Fee Table under the Resource Tab.




How do I receive my commissions?


Several weeks prior to closing you will fill out OTRE’s Commission Disbursement Agreement (“CDA”), which is available within the “Agent's Portal”. Once the CDA has been filled out and submitted, along with a copy of the executed contract, OTRE reviews the documents and signs the CDA authorizing you to be paid upon closing. You will be paid your commissions directly from the title company.




What business tools are provided?


Our Texas Real Estate will provide a digital file containing artwork for your Our Texas Real Estate business cards and signs. You may purchase these products from the supplier of your choosing. We also provide a website landing page customized with your picture, bio and contact information.




Who is listed as the Listing or Other Broker on forms?


Our Texas Real Estate is acting as your sponsoring broker. Any contracts should reflect this.




How long do I have to commit to the Plan?


Our Texas Real Estate asks for a one year commitment.




Are there any minimum sales volumes required?


We do not have any minimum sales requirements. It is up to each agents as to whether this is a full time or part time job for them.




What about E&O Insurance?


Sales agents are covered under Our Texas Real Estate's E&O Insurance. The cost is included in the monthly or annual fees paid.




Do you have any ethical requirement for sponsorship?


We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.




What about Board Association Membership and Dues?


Our Texas Real Estate has membership in the following Realtor Associations: Houston Area Realtors, Austin Board of Realtors, Dallas - MetroTex, Lubbock Association of Realtors, Greater El Paso Association of Realtors, Corpus Christi Association of Realtor, Central Texas Association of Realtor, Amarillo Association of Realtors, Collins County Association of Realtors, Whiticha Falls Association of Realtors, Kerrville Board of Realtors, and Fort Hood Association of Realtors. As we enter a new area of Texas we happily join the necessary boards. We maintain our membership and provide MLS access, however the agent is responsible for their own membership dues and any lockbox or security key fees.




Is office space provided?


No, you determine your physical office address. 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 (Our Texas Real Estate) to obtain a Branch Office license for this location. (Rule 535.112). The fee for this application is $20.





Plan 3 offers all the same great features of Plan 1, but has a different pay structure.  For those agents that like paying for everything at the time of the transaction, we offer  this plan with no monthly fees but with an small Annual Administrative Fee and Transaction Fees.  You can have your real estate license sponsored under Our Texas Real Estate and gain new independence.  We provide the high tech tools, marketing material, and E&O Insurance.

If you are a Realtor and want to own your own company we have the perfect solution.  State laws require a Real Estate Broker's License to open a real estate company, but they don't require that you become a broker.  With Drop Your Broker, you can own your own real estate office and keep all of your commissions.  We will broker your office for a flat monthly fee!

Are you a real estate agent just starting out, or trying to work up to full time, or perhaps working tirelessly for a big Real Estate Firm?  You can have your real estate license sponsored under Our Texas Real Estate and gain new independence.  We provide the high tech tools, marketing material, E&O Insurance all for a flat monthly fee!