Frequently Asked Questions

FAQs for the two sponsorship program options available.

LLC Sponsorship (“LLCSP”) FAQs

How does it work?

For each sponsored group, a separate LLC is created and licensed by TREC as an LLC Brokerage. One of BrokerBreakUp’s principals serves as the sponsoring broker to the LLC and the LLC serves as broker to the agents. The owner (you) owns the LLC/Brokerage. BrokerBreakUp’s Principals serve as sponsoring broker and attorney for you.

How much is sponsorship by BrokerBreakUp?

There is a one-time set-up fee of $1,500, which includes the Secretary of State’s filing fees and TREC’s filing fees. The remainder is for BrokerBreakUp’s time for licensing the LLC, setting up the LLC’s MLS access with your local board of realtors, providing an Office Policy Manual, and other materials BrokerBreakUp has prepared. We then charge $225 per month for the first agent and $125 per month for each additional agent.

When does the monthly fee start?

The monthly fee of $250 commences once you are ready to move your license under your new company.

How long does it take to set up?

The process takes approximately four weeks to complete. We suggest agents “stay put” with their current broker until their new company is ready and licensed. If you are in a situation and need to move, BrokerBreakUp will sponsor you under Pinnacle Reality Advisors until your company is ready and licensed.

What about E&O Insurance?

Each LLCSP will be responsible for procuring their own E&O insurance. Each sponsored entity will be required to provide proof of coverage upon application submission to TREC. BrokerBreakUp has preferred insurance providers and will aid in obtaining the insurance.

Do you own any part of my entity?

The owner owns 100% of the LLC as well as its listings, buyers, leads, and commissions. Pursuant to TREC rules, the broker acts as a manger of the LLC so that they can act as sponsoring broker.

How long do I have to commit?

BrokerBreakUp ask for a one-year commitment.

How are official items from TREC handled?

TREC will contact both of us with company matters. They will contact you for your individual matters.

Who is listed as the Listing or Other Broker on forms?

Your LLC name will be listed as the Listing or Other Broker.

Who generates the CDA’s?

You generate your own CDA (We are paid through credit card draft and have no interest in the CDA process).

Can I take my LLC name with me should I no longer be sponsored?

Yes, your LLC is your company name.

Would I have control over the MLS input?

Yes, you will have input control. You will be the “Office Manager,” which allows you to cancel your own listings as well.

Is office space provided?

No, you determine your physical office address. Under the LLCSP, if you intend to open multiple office locations, a Branch Office license will also be required. Please notify us if this is the case and provide the appropriate application fees and we will fill out the required forms and submit to TREC.

Do you have any ethical requirements for sponsorship?

We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.

Anything else?

Running your own business comes with an additional set of responsibilities and BrokerBreakUp is here to help. Your daily routines of seeking out leads, clients, and business management will remain the same. The biggest difference is that you will be marketing yourself and won’t be paying commissions to your broker.

Individual Sponsorship Plan (“ISP”) FAQs

How much is sponsorship by PRA?
  • Option 1: PRA charges an E&O fee of $250/year, a monthly fee of $199 with NO transaction fee.
  • Option 2: PRA charges an E&O fee of $80/year, $350 annual membership fee and a minimum transaction fee of $150.
How do I receive my commissions?

1-2 weeks prior to closing you will fill out PRA’s Commission Disbursement Agreement (“CDA”), which is available within the “Member Portal”. Once the CDA has been filled out and submitted, along with a copy of the executed contract, PRA reviews the documents and signs the CDA authorizing you to be paid upon closing, directly from title.

How are my listing signs displayed?

The Texas Real Estate Commission requires the name of the listing Broker to be displayed on all signs (TRELA 1101.652(b) (23). You can still include your name and contact information, but must also include Pinnacle Realty Advisors (your sponsoring broker) somewhere on the sign. We do provide and allow the use of our signage & logo for Pinnacle Realty Advisors in various formats in our “Members Portal”.

Who is listed as the Listing or Other Broker on forms?

Pinnacle Realty Advisors is acting as your sponsoring broker. Any contracts should reflect this.

How long do I have to commit?

PRA asks for a one-year commitment.

Are there minimum sales volumes?

You can do zero or thousands of transactions per year as an agent sponsored by PRA.

What about E&O Insurance?

Option 1: E&O fee of $250/year
Option 2: E&O fee of $80/year

Do you have any ethical requirements for sponsorship?

We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.

Is office space provided?

No, you determine your physical office address. Agents may choose to open their own offices or work from home. If you intend to conduct business from an office location where you meet with the public to transact business, TREC requires the broker (Pinnacle Realty Advisors) to obtain a Branch Office license for this location. (Rule 535.112). The fee for this application is $20.

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