What is an Employing Broker in California?

Let’s explore who an employing broker is and why they’re so vital to your real estate career.
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You can get a real estate salesperson license in California without an employing broker. But you won’t get a working status license that enables you to actually practice real estate without one.

Let’s explore who an employing broker is and why they’re so vital to your real estate career.

What is an Employing Broker?

The name says it all. An employing broker, also known as a sponsoring broker, “employs” licensed agents. They themselves are also licensed in the state of California.

When you apply for a salesperson license the employing broker’s information should be included, and the employing broker must provide a signature. This signifies to the California Department of Real Estate (DRE) that you’re part of a brokerage and are eligible for a working status license.

What Does a California Employing Broker Do?

An employing broker wears a number of hats. They’re the CEO of the brokerage, run the day-to-day operations of the business and oversee the work of agents on top of handling their own transactions.

An employing broker pays the salary of brokerage office workers, but “employed” agents typically aren’t salaried. However, the employing broker does handle commission payouts after each close. The commission split is agreed upon when you sign on with the brokerage. In fact, all of the material aspects of your professional relationship must be in writing and on file at the brokerage office.

Perhaps the most important role of the employing broker is to make sure their agents are following the ethics and real estate laws of California. They serve as mentors for agents and can help new salespersons learn the ropes.

They also take care of many administrative tasks. Your employing broker will be issued your license as soon as you pass the exam. They’re also in charge of certifying updates in the eLicensing system if the brokerage information changes or you decide to change brokerages.

How Can You Become an Employing Broker?

Interested in employing a few California real estate agents? Or maybe you simply want to be the broker of your own real estate business?

First, you have to become a licensed California real estate broker. To get a broker license you must have at least two years of full-time real estate experience and complete eight college-level courses.

From there you can begin employing agents. To do that, you’ll need to create a written agreement that specifies all aspects of the employment relationship including:

  • Commission splits/compensation
  • Supervision of the agent
  • Duties of all parties

Once that’s done you’ll have to provide your signature on the individual’s license application.

Like other brokers, to maintain your employing status you’ll need to participate in continuing education, renew your license on time every four years and pay all associated fees.