Hello:

I am a business broker in Indiana and caught in a real estate loophole. Although I have a real estate license, I cannot obtain my re brokers license until I've been active and hanging w/a re broker for one year.

Because I own my own business brokerage firm (no license required to sell businesses), building my own company name recognition and no interest in residential or even commercial property sales... I am having great difficulty in finding a broker to hang my license.

The 'catch-22' that I am in is this: Occassionally, I do have businesses w/re attached and thus my re license is required. With no 'broker' hanging my license, I've been forced to give away and/or turn down some transactions.

My options appear to be limited to hiring a RE Broker as an employee of my firm or buying an existing RE Office w/an existing broker. I would prefer to hire a broker vs. purchase an office.

My Question Is This: Considering the above information, what would be considered a fair wage, opportunity or compensation to offer a semi-retired or retired re broker w/an active license. I ask here so that I do not over compensate and/or insult prospective brokers.

Your input and comments are very welcomed and appreciated. Thank You

I would think it would be apparent to anyone you interviewed for your situation that (for them) this is going to be a very short lived situation (the candidate will undoubtedley conclude that you will replace him/her with yourself as soon as you can get your brokers license)...SO what would be fair? I'm guessing an open and honest contract for 50% of commisions during the period in which you do not yet have your broker's License and then renegotiate if you both wish to continue the relationship after that. The value of you entering into a contract with a broker on a temporary basis is easy to put a price on, how much business will you lose without it? Another thing to consider, Listings belong to the broker if youare within 90 days of getting your broker's license and are contemplating taking a 12 month listing, just remember that listing will belong to the broker. So you may want to extend your brokerage agreement passed the point where you get your broker's license. 50% is fair even if you do all of the leg work, because teh broker must bear 100% of the legal liability.

Hello James and thank you for the reply. Yes, I do agree that would be fair.

I should add that it is my hope to continue a reciprocally benefical relationship with that broker as I would continue to refer all the residential inquires to him/her, as this is something that I do not intend on.

As far as liability, as a business broker the transactions would 'also' be covered under my E&O insurace as well.

The transactions that I bring to the table are those that a RE Broker would not normally realize due the business owner concern for confidentiality, and they do not usually look to the RE market for possible sale.... No signs, no open advertising, etc.

Again, I thank you VERY much for your feedback!