If you’re a licensed Alberta real estate agent or broker, you may have heard of the term “parking your real estate license.” It refers to a practice where an agent chooses to maintain their real estate license but not actively engage in trading in real estate. Essentially, they are putting their license on hold until they’re ready to resume work. This can be a good option for agents who want to take a break from real estate, explore other career opportunities, or simply want to take time off from the industry for any variety or reasons from health to family to even traveling.
However, like most things in life, there are pros and cons to parking your Alberta real estate license. In this blog post, we’ll explore both sides of the equation, so you can make an informed decision.
Pros:
- Cost Savings: One of the biggest benefits of parking your Alberta real estate license is the cost savings. Real estate agents are required to pay annual fees to maintain their license, even if they’re not working. By parking your license, you can avoid these fees and save money. Especially if you join a brokerage like Park And Protect who does not require you to join any real estate board, provincial or federal groups, or any of the other expensive but completely unnecessary industry organizations.
- Flexibility: Another advantage of parking your license is the flexibility it offers. You can take a break from real estate without having to worry about meeting continuing education requirements or keeping up with industry changes. Your license can remain parked as long as it is registered with a license parking brokerage in Alberta.
- Easy Reinstatement: If you decide to return to real estate in the future, it’s generally easier to reinstate your license than to start from scratch. You’ll still need to meet certain requirements, but the process is usually faster and less cumbersome.
Cons:
- Loss of Income: Perhaps the most obvious drawback of parking your license is the loss of income. Real estate can be a lucrative career, and if you’re not working, you’re not earning money. However, a parked Agent can still collect certain commissions and referral fees depending upon the parking brokerage they register with.
- Limited Access to Resources: Real estate agents who are actively working have access to a variety of resources, including MLS listings, networking opportunities, and training programs. When you park your license, you may lose access to these resources, which could make it more difficult to return to the industry. This is why parked agents are generally precluded from all trading in real estate.
In conclusion, parking your real estate license can be a good option for agents who want to take a break from the industry. However, it’s important to weigh the pros and cons carefully before making a decision. If you’re considering parking your license, be sure to check with your state’s real estate commission to understand the specific requirements and procedures for doing so.