What is a brokerage
A brokerage is a corporation, partnership, or sole proprietorship authorized to trade in real estate on behalf of others. It must be registered with the Real Estate Council of Ontario (RECO). If you are a salesperson or broker, you are required to work for a brokerage.
The brokerage employs salespeople and brokers to perform the day-to-day listing and selling activities of trading in real estate. These and other activities are performed under the guidance and direction of the broker of record.
What is a broker of record
Every brokerage must employ a broker of record. The broker of record ensures that the brokerage complies with the legislation that governs real estate, the Real Estate and Business Brokers Act, 2002, and its regulations (collectively known as REBBA 2002). The broker of record also maintains the brokerage trust account, and reviews and signs trade record sheets.
Finding the ‘right’ brokerage’
As a student of OREA Real Estate College, you need to decide the type of brokerage you want to work for. You should start your research to find the ‘right’ brokerage early because you’ll have 12 months after completing the Pre-registration courses to find employment with a brokerage and register with RECO.
Finding the right brokerage is easy – review each of the steps below.
1. Find the type of brokerage you want to work for
Find out which brokerages fit your income needs, professional aspirations, and long-term plans. Here are your options:
- franchise or independent
- full service or limited service
- listing or selling
2. Research brokerages in your area
Get a sense about the nature of the brokerage. Determine if they offer any of the following services (these are examples only), and which are important to your career development:
- Sales and management training program
- Technology training (e.g., internet marketing)
- Dynamic websites and salesperson branding (i.e., custom personal websites)
- Desktop publishing
- New salesperson support systems
- Profit sharing and residuals
3. Interview the brokerages
Interview a minimum of 3 brokerages that interest you. You’ll likely be interviewed by the manager or the broker of record.
While the brokerage interviews you, you should also interview the brokerage. Here are some questions to ask:
- Do you offer training? If yes, what kind? Is there a cost?
- Do you offer mentoring for new salespeople?
- How many new salespeople do you train on average each year?
- Can I speak to some of your salespeople?
- What special services do you provide that are unique from other brokerages?
- What market share do you have? What are your market strengths?
- Which expenses do you pay? Which expenses do I pay? (the more specific the list, the better)
- Will I have an office, a desk in a common area, or a shared desk?
- Do you have an office policy manual I can review?
- What is your commission plan? (Please note, commission plans will vary depending on the brokerage.)
Other factors to consider:
- If the brokerage provides support to new salespeople, determine the level and type of support. For example: Is the support professional development, sales training, administrative day-to-day support, or a combination? Is the support ongoing?
- Consider the brokerage’s atmosphere. Would you be comfortable working in that environment? Is it professional? Does the pace suit your style?
Do not commit to a brokerage until you know all your options.