Are you working on getting your real estate license in New York? You can take the real estate continuing education courses and pass the state licensing exam, but you’ll need a sponsoring broker to get a license.
Learn what a New York sponsoring broker is, what they do and how you can become one.
What is a Sponsoring Broker?
A sponsoring broker is a licensed broker in the state of New York who employees agents and associate brokers. However, it’s not employed in the traditional sense of the word. Agents enter into a contract with their sponsoring broker in which they agree to split the commission on all sales the agent handles. The agent then becomes part of the broker’s brokerage.
Without a sponsoring broker, you can’t get an active salesperson license in New York or renew your existing license.
What Does a Sponsoring Broker Do?
Long story short, a sponsoring broker is responsible for the agents they sponsor and running the day-to-day operations of their brokerage. They’re also responsible for:
- Managing information in the eAccessNY online system, such as making updates when there’s a change of address or broker association.
- Mentoring the agents they sponsor.
- Holding the license of the agents and associate brokers they sponsor.
- Collecting commissions on transactions and making payouts to agents.
- Providing office space.
- Providing documents, supplies, etc.
Brokers are held to a high standard because they’re seen as experienced professionals who understand the real estate industry. They have to be careful to supervise their agents’ activity since they’ll get in just as much hot water if an agent violates the state rules and regulations.
How to Become a Sponsoring Broker in New York
The first step to becoming a sponsoring broker is to get a New York real estate broker’s license. To do that you have to:
- Be at least 20 years old.
- Have at least two years of full-time experience as a salesperson or have worked in the real estate field for three years full-time. Lawyers who are admitted to the New York State Bar can also apply for a broker’s license (without having to meet the experience and education requirements).
- Meet the minimum points required for specific real estate activity.
- Complete the 75-hour New York salesperson course and 45-hour New York real estate broker course.
- Pass the broker’s exam.
- Submit a real estate broker application.
- Pay the associated fees.
Once you become a broker you can then become a salesperson’s or associate broker’s sponsoring broker. All it takes is authorizing their initial application or performing a change of association in your account on the eAccessNY system.