REALTOR® Brokers have an option to open a separate office for the purpose of waiving REALTOR® dues and MLS fees for agents who want to keep an active license with MREC but choose to work in a very limited capacity. The firm is called a Limited Function Referral Office or LFRO and the agents’ work is limited solely to referring any and all business to the Broker. Because REALTOR and MLS resources are not needed by the agents in the LFRO, the fees associated with both are waived.
When a Broker transfers a licensee from the REALTOR® firm to the LFRO firm the Licensee Status Form must be completed and provided to the CMR staff stating that the transfer is to the Broker’s LFRO. Because the same processes are required to process the transfer as any other transfer the $40 transfer fee applies. CMR staff is required to report to NAR the names of active agents in all LFRO firms to account for those whose REALTOR® dues and MLS fees are not collected. At such time as an agent in an LFRO firm wants to do other licensable activity such as showing property or taking a listing, the Broker will then be responsible for transferring the agent back to the REALTOR® firm where all REALTOR® dues/assessments and MLS fees would be applicable.