If you hold an Illinois real estate broker license and want to move into a referral-only model, a Real Estate License Holding Company can reduce overhead while keeping your license active with IDFPR. Below is a breakdown of the costs you should plan for, plus common ranges so you can build a simple budget.
Notes: Amounts vary by brokerage and CE course provider and listed amounts are used for example purposes only. Please verify costs with your chosen real estate license holding company and CE school.
One-time or Transfer Costs
Sponsor change / transfer fee (state):
Illinois assesses a fee when a broker changes their sponsoring broker ($35 as of the date of this post).
Onboarding fee (brokerage):
Some real estate license holding companies charge a one-time setup fee to create your file and add you to their system. Typical range: $0–$150. (NextPath Realty does not charge this fee).
Recurring Brokerage Costs
Annual company fee:
Most real estate license holding companies charge a flat annual fee. The typical range: $95–$300 per year, with some charging more or less than this average. This usually covers compliance support, referral tracking, and payment processing.
Monthly admin fee (if any):
Some firms use a low monthly fee instead of (or in addition to) an annual fee. Expect $5–$20 per month, or more with some larger brokerages.
Errors & Omissions (E&O):
In a referral-only model, E&O is often included in the annual fee and is covered at the brokerage level since referral-only brokers should not be performing covered services. If billed separately, expect $50–$150 per year. Ask whether referrals placed with outside brokerages are covered under the company’s policy.
Referral split:
Not a “fee,” but it affects your net. Many real estate license holding companies pay you a split of the referral fee after closing. For example, if the receiving brokerage pays a 25% referral, your company may pay you 70%–90% of that amount, per your agreement.
State Licensing Costs (IDFPR)
License renewal fee (broker):
Illinois brokers renew in even-numbered years. The state licensing fee is $200 as of the date of this post, due by April 30 of the renewal year.
Continuing education (CE):
Illinois brokers complete 12 hours of CE every renewal cycle. For the 2026 cycle, IDFPR describes 6 hours Core and 6 hours Elective, which may include the required sexual-harassment-prevention training if taken with an approved provider. Course providers set prices, but most packages land around $60–$150 for all hours, with some outliers falling above or below this average.
Post-licensing (if first renewal):
If you are renewing for the first time within the current cycle, you will have to complete post-licensing education instead of standard CE. Post-licensing education classes require additional hours and are typically more expensive costing between $200-$350 on average.
Costs You Often Do Not Pay in a Real Estate License Holding Company
- MLS dues: Not required for referral-only activity.
- Local/State REALTOR® association dues: Not required
- Lockbox / key fees: Not needed for referral-only brokers.
Example Annual Budget (NextPath Realty as Example)
- Company annual fee: $95
- E&O (included at company level): $0
- Admin fee: $0
- CE package (averaged annually): $75
- State renewal (averaged annually over 2-year cycle): $100
Estimated annual total: $270
Your number may be lower or higher. If your company fee is $110 and your CE package is on the low end, you could land closer to $250 per year. If your company bills E&O separately or you prefer premium CE, expect $350–$450.
How Referral Income Offsets Costs
Assume one closed buyer referral at $400,000 with a 2.5% buy-side commission ($10,000). A 25% referral equals $2,500 paid to your sponsoring broker. If your split is 85%, your payout is $2,125. That single referral can cover a year or more of fees.
Checklist Before You Commit
- Review their posted fees: Annual fee, admin fee, E&O terms, and any onboarding fee.
- Confirm CE plan: Verify how many hours you need this cycle and whether you need post-licensing.
- Review referral handling: Agreement template, tracking process, payment timing, and your split.
- Map the renewal date: Put April 30 (even-numbered years) on your calendar; budget for the $200 state fee.
- Plan your outreach: List warm contacts and preferred receiving brokers before you switch.
Bottom Line
For Illinois brokers who want to keep their license active and earn referral income, the Real Estate License Holding Company path replaces MLS and board dues with a simple company fee and standard state costs. Build a small budget that includes the annual company fee, CE, and the state renewal. With one or two solid referrals, most brokers cover the entire year and stay ready to return to production when the time is right.