I'm trying to get as much info on Limited Function Referral Office's as I can. I'm interested in opening one, but so far I can't find anyone who has one that is willing to share info. If you have any info it would be greatly appreciated.

Thank You
Ky. Cowboy

"Limited Function Referral Office's"
Maybe you can give us more detail? I for one really don't know what you are looking for.

I should have responded a couple weeks ago . .

A LFRO, or Limited Function Referral Office, is a special kind of real estate brokerage recognized by NAR.

In essence, it is a brokerage where agents can place their licenses. By contract, they may not buy or sell but can refer business (and receive referral fees back).

There are several reasons an agent might want to do so: 1) LFRO agents are not members of NAR, your state or local association or MLS and avoid their fees. 2) It is a way to keep your license active. 3) It is a relatively easy way to earn extra money.

I have one. It is very popular with agents leaving the business or those who need to take a sabbatical (ie. sick family member, etc.).

It is truly another brokerage. So, you need to set it up as such and have a contract for the agents (barring them from listing or selling and only allowing the referral of business). You'll also need a broker. In most states, it can be the same broker as your primary company. Every year, your local association will require you to certify who is a member of your LFRO and that they are not doing general real estate (otherwise, the association and mls dues apply).

so if you get even one referral, why not just do the transaction yourself and keep the extra 75% (given the referral is the standard 25%). that one deal could easily cover a years worth of NAR and Realtor fees.

I can see someone who has a full time day job and had a license on ice, being able to hang it at a brokerage and getting paid a referral fee without the monthly and annual dues.
This would be perfect for someone working at large company in the HR Dept. who knows who's coming and who's going.

VM Group --- LFROs are designed for folks who don't want to do active real estate. It is really amazing how many fall in that category. Often it is illness or infirmity, either personally or in their family. Others have taken a job that precludes real estate. Some just don't want to do real estate.

A LFRO is a way for those folks to earn some money without the responsibility or costs of active real estate.

It is not for everyone. .

Some people might just be excellent at making contact and getting the lead but don't want the hassle of getting to closing.Others could be retired re agents that still have many past clients come to them through refferal and they want a way to be compensated for it.