Ontario licensed real estate agents and maternity leave

Most Ontario real estate agents work on commission only. These agents are generally in independent contractor status, making them self-employed. The “employee” rules and regulations in the province of Ontario, for the most part, do not apply to self-employed real estate sales that decide to take maternity leave.

When a real estate agent, realtor, sales representative or broker considers her maternity leave situation, she will be thinking about the loss of income, current and ongoing monthly expenses, and possibly the option of not returning to real estate sales. time.

Here’s a typical scenario for an Ontario Realtor on maternity leave:

Perhaps she was a registered real estate agent with a franchise broker in Ontario. That broker is a member of the Toronto Real Estate Board or, depending on their location in Ontario, their local board. The broker pays his dues as a board member, including associations such as OREA and CREA. Therefore, all agents in that brokerage are responsible for the fees, whether they are active in the sale or not. A representative on maternity leave will pay these fees as long as she is registered with this broker.

Not all franchise brokers are created equal, but most will have certain shared expenses or fees that their sales representatives must pay as part of their agreement. These charges may be desk charges, advertisement charges, franchise and marketing charges, fixed monthly office charges or administrative expenses etc. Although real estate boards are required to pay fees and charges if the agent is on maternity leave or not active in sales, some brokers may allow non-payment or waive some of the listed expenses while the agent is on maternity leave.

A rep on maternity leave may have some legal concerns about having to pay for expenses incurred while in the sales field. Another concern may be the loss of income due to her leave. Yet another thought might be that she finally feels that, as she takes care of her son and family, returning to real estate sales is not something she wants to do anytime soon.

There is a lot of flexibility with real estate agents who are prepared to take maternity leave in Ontario. If costs become a problem, the licensed agent can leave his current brokerage and register with a non-board real estate broker. She can terminate her consent with a broker. This alone will save the agent a lot of money, especially if her maternity leave is extended indefinitely.

Income while on maternity leave is possible whether the realty agent remains registered with a board member broker or a non-member broker. She may refer business to a real estate agent or broker and agree to receive a referral fee. As long as her real estate license is in good standing with RECO, she can earn referral commissions paid to her by her broker.

Although maternity leave isn’t an option for many agents, it’s good to know that real estate agents in Ontario who choose to take maternity leave can do so with a little more common sense. Reassurance that these agents can significantly reduce their costs and still earn income by referring sales to other licensed agents will definitely be important considerations when deciding to become a stay-at-home parent.

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