If you’re an Illinois broker who wants to keep your license active and still earn from referrals, placing your license with a real estate license holding company can be a smart move. This guide explains how it works in Illinois—covering rules, transfers, continuing education, advertising, and answers to common questions.
What a “License Holding Company” Means in Illinois
In Illinois, a referral-only or “license holding” brokerage sponsors brokers who do not practice brokerage activities such as showings, listings, or negotiations. Instead, these brokers earn referral fees by referring clients to active brokerages.
Key points to remember:
- You can only work under one sponsoring broker at a time.
- All compensation must be paid through your sponsoring broker. Referral payments are handled broker-to-broker, not directly to the agent.
Do You Still Need Continuing Education (CE)?
Yes. Being referral-only does not exempt you from CE requirements.
- Brokers: Must complete 12 hours of CE by April 30, 2026 (6-hour Core + 6 hours electives, including required topics such as sexual harassment prevention).
- Managing Brokers: Follow a separate cycle, with the next renewal date in 2027.
The Illinois Department of Financial & Professional Regulation (IDFPR) publishes official outlines for the Core curriculum. Make sure you register for approved courses to stay compliant.
How to Transfer Your License Into or Out of a Holding Company
Illinois makes transferring simple:
- Online Transfer: Use the IDFPR Online Services Portal. Select Licensure Options → Transfer Active License to New Brokerage Firm, and complete the steps. Your new sponsoring broker approves on their end. The exact steps, as well as the information you will need for the transfer, can be found here.
Advertising Rules Still Apply
Even if you are referral-only, any advertising (website, social media, business cards) must follow Illinois rules:
- Advertising must clearly show your sponsoring broker’s name.
- Team names cannot include words like “company,” “realty,” “agency,” or “brokers.”
- Designated Managing Brokers (DMBs) have additional oversight responsibilities for compliance.
FAQs: Illinois License Holding Companies
Can I list or sell homes in a holding company?
No. You may only earn referral fees. No active brokerage activity is allowed.
Do I need to join a local REALTOR® association or MLS?
Usually no. Referral-only agents do not typically join the MLS or local boards since they’re not practicing.
How are referral fees paid?
All referral income must go through your sponsoring broker. Written agreements should outline your referral splits and payment process.
Do I still need CE?
Yes. All brokers and managing brokers must complete their CE requirements by their renewal deadline.
Can I have multiple sponsoring brokers?
No. Illinois law allows only one sponsoring broker at a time.
Compliance Checklist
- ✅ Confirm you’re sponsored by the holding company in the IDFPR portal
- ✅ Complete transfer paperwork online
- ✅ Calendar CE hours ahead of renewal (12 hours for brokers by April 30, 2026)
- ✅ Make sure advertising complies with Illinois rules
- ✅ Route all referral payments through your sponsoring broker
Final Word
A real estate license holding company in Illinois is designed for agents who want to keep their license active and earn income through referrals—without the obligations of day-to-day sales. By following transfer steps, staying current on CE, and respecting advertising and compensation rules, you can protect your license while continuing to earn.