Licensed Ontario Real Estate Agents and Maternity Leave

Most real estate agents in Ontario work solely on commission. These agents typically have independent contractor status, making them self-employed. The “employee” rules and regulations in the province of Ontario, for the most part, will not apply to self-employed real estate sellers who choose to take maternity leave.

When a real estate agent, real estate agent, sales representative or broker considers your maternity leave situation, they will be thinking about lost income, existing and ongoing monthly expenses, and possibly the option of not returning to the real estate sales for a longer period. of time.

This is a typical scenario for an Ontario real estate agent on maternity leave:

Most likely she was a registered real estate agent in Ontario with a brokerage franchise. That brokerage is a member of the Toronto real estate board or, depending on your Ontario location, your own local board. As a board member, the Brokerage pays its fair share, including associations like OREA and CREA. Therefore, all agents of that Brokerage House will also be responsible for the due, whether or not they are active in sales. The agent in a Maternity situation, then, will also be paying these debts while she remains registered in this Brokerage.

Not all franchise brokerages are the same, but most will have certain common expenses or fees that their registered sales agents must pay as part of their agreement. These fees can be desk fees, advertising fees, franchise and transaction fees, fixed monthly office fees or administration costs, etc., etc. While real estate board fee and payment is required, whether you are on maternity leave or simply not active in sales, some brokerage agencies may allow non-payment or waive some of the listed expenses while the agent is on maternity leave.

An agent on maternity leave may have some legitimate concerns about having to pay the same expenses she did while in the sales field. Another concern may be the loss of income due to her leave. Yet another thought may be her final feeling, as she cares for her baby and her family, that getting back into real estate sales won’t be something she wants to do sooner, but much later.

There is a lot of flexibility in Ontario with real estate agents ready to take maternity leave. If expenses are going to be an issue, the licensed agent may choose to forego their current brokerage and sign up with a non-board real estate broker. He can park her license with a Brokerage that will have none of the aforementioned fees and due applicable. This alone will save the agent a lot of money, especially if his maternity leave extends for an uncertain period of time.

Income during maternity leave is possible whether the real estate agent remains registered with a Board Member Broker or with a Non-Member Broker. You can refer business to a fellow Real Estate Agent or Brokerage and accept a referral fee. As long as your real estate license is registered with a Brokerage in good standing with RECO, you can continue to earn referral commissions paid to you through your Brokerage.

Although maternity leave is not an option for many agents, it’s nice to know that in Ontario, real estate agents who choose to take maternity leave can do so with some peace of mind. The assurance that these agents can substantially reduce their expenses and still earn income by referring sales to other licensed agents surely becomes an important consideration when they decide to become stay-at-home parents.

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