How to switch real estate brokerages (3 Reasons you should switch brokerages and let your broker down easy.)

Real estate brokerages

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These are the 3 Reasons You should switch brokerages and let your broker down easy:

Changing real estate companies:

The reasons to switch brokers vary. When entering the real estate sales business, agents choose the broker who attracted them to the business. Many also choose a broker with the largest market share in their area. The truth is that the broker will NOT be the only determining factor of their success. A company’s leadership can be a helpful tailwind for an agent’s career trajectory. There are also obvious reasons for aligning with a broker with more benefits. This article will outline the three reasons an agent should switch their sponsoring broker. Agents sometimes stay in a relationship without considering options with more benefits. The obvious data to consider when aligning with a brokerage are:

  • agent support 
  • the broker-agent commission split
  • the added benefits of the broker relationship

Changing real estate brokers

First, one of the most important aspects of the broker relationship is whether the broker has your back. The liability for your acts as an agent is the broker’s responsibility. The duty (IMO) of the broker to be a good “foxhole friend” when troubles arise. The broker’s professionalism and negotiation skills can make the difference between a lawsuit or not.  Brokers who ignore the client’s best interest to avoid litigation are equally weak. Seek talented brokers. I will speak from experience; there is a difference between leather and silk. A broker needs skills in conflict management and contract law. If you observe your broker choosing the company’s self interest over your career success or your client’s best interest, you should change brokerages. 

How to switch real estate brokerages

The second reason to consider a change in brokerages is whether the broker/manager “plays favorites”. Independently operated brokerages can offer discretionary commission splits, office space, and bonuses. Most personnel aren’t privy to the information, but these details will somehow leak. Special deals could inspire others to pursue more sales production and become one of the favorites. It could also damage the morale of the company. How would you feel knowing that the broker’s favorites received a better commission split? If there are undisclosed sweetheart deals within your company you should review other companies’ offerings. 

The third reason to consider switching brokerages is the advantages of aligning with the brokerage? Most brokerages make their offering based on the company agent-broker split. After this, the only benefits they offer are the perceptions of the company brand. Perception is not empirical data and cannot be quantified or measured. 

Can the company offer:

  • A share of the revenue or profit
  • Ownership in the company
  • Sales tools
  • Affordable or free advanced training
  • Health Care
  • Monetary sales awards
  • How to switch brokerages

If your company’s offering does come close to a competing company’s offer, you should consider transferring broker sponsorship of your license. 

The important thing to remember is that it’s not personal. Breaking a longstanding relationship can feel like a betrayal to a broker. Managers are usually likable, professional people. They care about the agents they sponsor. Real friends respect an individual’s need to grow. Brokers can use the data to improve their company and agent offering. 

changing real estate brokers

Suppose you decide that it is time to move on to new opportunities with another company. The change is straightforward. The hard part is when there are deals in motion. Your previous broker will need to send your commission to your new broker when your deal closes. 

A harder scenario is when you have listings that don’t have a contract. Some companies have a policy that agrees to cancel the broker’s listing contract. Some companies will try to keep your listings. 

How to switch brokerages

The mechanics of the transfer are simple. You get the proper form to terminate the license sponsorship. This comes from your state real estate licensing board. Fill out the document and get your current broker to agree to the terms. Then, the request to transfer your license sponsorship form, fill it out and get your new broker to sign the form. Send these to the licensing board with any associated fees. 

Related FAQs

How to switch brokerages as a real estate agent? 

Switching real estate brokerages is a simple sequence of steps:

You complete the official paperwork that terminates the current broker sponsorship agreement.
You complete the document that transfers sponsorship to your new broker.
You send any required fees for the transfer. 

How long does it take to switch real estate brokerages?

The time needed to complete the transfer to a new broker varies depending on the state. A reasonable time frame for the state licensing agency is 7 to 10 days. It could take a little longer if your state agency has a backlog of work.

Switching real estate brokerages checklist

The checklist for switching brokerages includes:

  • Discuss the list of your current transactions and listings with your current broker
  • The termination agreement for your current broker to sign
  • Transfer of sponsorship form for your new broker to sign
  • Money for the state fees for the transfer


In conclusion, always remember that you are an independent contractor and it is your responsibility to align with a broker who creates the best environment for your business. Let your current broker down easy. Encourage them to support your efforts to improve your career and be happy for you. Remind them that it isn’t a reflection on your relationship. Explain that it is your responsibility to do the best you can for your family and yourself. Ask them if you can leave on good terms and return to the company if your new endeavor doesn’t work out for some reason.

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