VCCAR Policies: Unreported Licensees

What is an Unreported Licensee?

Unreported Licensees are agents who have not joined one of the associations of which the sponsoring broker is a member. The Bylaws of the Ventura County Coastal Association of REALTORS®, the California Association of REALTORS®, and the National Association of REALTORS® provide that if you, or a broker in your firm, hold the license of a non-member agent, you must pay dues to the Association on behalf of that licensee (Article X, Section 2).

Broker compliance is a critical element of running a successful real estate brokerage. Compliance refers to the laws, regulations, and policies governing the real estate industry. These regulations protect consumers, maintain transparency, and ensure fair and ethical transactions.

The California Association of REALTORS® (C.A.R.) holds local REALTOR® associations responsible for ensuring broker compliance with the National Association of REALTORS® (NAR) Variable Dues Formula. The formula ensures fairness by basing member dues on the number of individuals licensed with REALTOR® principals (Designated REALTORS®, or DRs).

The premise is that every licensee in a firm benefits from the DR’s membership in the Association, and the DR’s dues payment should reflect all licensees in the firm—even those who are not REALTORS®.

What are my options for satisfying this requirement?

• JOIN US
• Have the licensee establish REALTOR® membership with the Ventura County Coastal Association of REALTORS®
• STAY COMPLIANT
• Non-member Assessment: An invoice for each non-member agent under your sponsorship will be emailed to you within the week. You may choose to pay this invoice instead of becoming a member of the Ventura County Coastal Association of REALTORS®, however, paying the invoice will not make the Unreported Licensee a member of the Ventura County Coastal of REALTORS®.
• Exemption for Referral Agents: Licensees working for a separate entity owned by the Designated REALTOR® (Broker), which is exclusively engaged in referring clients, can be excluded from your dues calculation. Any licensees identified on the Limited Function Referral Office (LFRO) Certification Form are excluded from paying REALTOR® Dues and the Designated REALTOR® (Broker) is not responsible for paying the non-member assessment. This form needs to be submitted annually. Submit the LFRO Certification Form.
• Exemption for Mortgage Loan Originators: Affiliated MLO licensees in your firm may be excluded from your dues calculation. You must provide a list of the affiliated MLO licensees and certify that all of the listed licensees: (1) have an MLO license or endorsement; (2) are not engaged in real estate licensed activities except those for which an MLO is required; and (3) are not participants or subscribers in any ‘Multiple Listing Service (“MLS”)’. This form needs to be submitted annually. Submit the MLO Certification Form  
• TERMINATION
• You may terminate the non-member licensee by removing the licensee from DRE records. This can be done in eLicensing
  https://secure.dre.ca.gov/elicensing or by submitting Form 214. You will not be charged the non-member assessment for this licensee if one of the following must be provided:
• Date-stamped termination form from CalDRE
• Email verification from CalDRE
• ESTABLISHED MEMBERSHIP
• If the Unreported Licensee(s) holds membership with another REALTOR® association in the state of California, you may provide a Letter of Good Standing from said association.

If services are terminated prior to resolution of said Unreported Licensee(s), an additional fee of $150 will be assessed for the reinstatement of your membership.

We greatly appreciate your cooperation on this matter. Should you have any questions, please contact your VCCAR Member Services staff at vccar@vcrealtors.com or by phone at 805-981-2100.