You don’t technically place your license “on hold.” In most cases, that means either making your license inactive or moving it to a brokerage that allows referral-only activity.
The right option depends on whether you want to keep the ability to earn income.
Option 1: Make Your License Inactive
Placing your license on inactive status is handled through your state’s licensing system.
In most cases, that means:
- ending your affiliation with your current brokerage
- updating your license status through the state portal
- remaining licensed, but not active
When your license is inactive:
- you cannot represent clients
- you cannot earn a referral fee
- you are not practicing real estate
This is the simplest option, but it completely shuts off your ability to earn income.
Option 2: Move Your License to a Holding Company
The other approach is what most people mean by “putting their license on hold.”
Instead of going inactive, you transfer your license to a real estate license holding company or referral-only brokerage.
In that setup:
- your license stays active
- you are still affiliated with a brokerage
- you are not expected to actively sell
- you can earn referral income
This is how many agents operate as a real estate referral agent without taking on full transactions.
How the Transfer Process Works
If you choose a holding company, the process is usually straightforward:
- choose the brokerage you want to move to
- the transfer is initiated with the state
- your new broker accepts the transfer
- your license becomes active under the new brokerage
There is typically no additional testing required.
How to Decide Which Option Makes Sense
The decision comes down to one question:
Do you want to earn income from your license?
- If no → inactive status is fine
- If yes → you need to stay active with a brokerage
If you expect to occasionally run into real estate opportunities, staying active is usually the better option.
The Bottom Line
“Putting your license on hold” usually means either going inactive or moving to a holding company.
Inactive status is simpler but shuts off income.
A holding company keeps your license active and allows you to earn referral income without the demands of full-time real estate.