Starting a real estate brokerage isn’t just about setting up an office; it’s about creating a space where agents are empowered to succeed. By following these 5 essential steps, you’ll lay the foundation for a brokerage that attracts and retains top talent.
Get the forms you need to start your own brokerage.
Step 1: Obtain a Broker’s License
To start your own real estate brokerage, you must first be a licensed real estate broker. If you’re currently a sales representative, you’ll need to meet specific requirements set by your provincial or territorial regulatory authority. This involves completing required education and training, and passing the broker’s licensing exam.
For example, in Ontario, you must be at least 18 years old, a Canadian citizen or permanent resident, you must first be a registered real estate salesperson with RECO.
Step 2: Establish Your Business Legally
Formalize your business with these steps:
- Incorporate your company or choose another appropriate legal structure.
- Register your trade name if you want to operate under a specific brand.
- Get your HST number to manage your tax obligations.
This sets your business up with a strong foundation.
Step 3: Set Up Your Bank Accounts
To maintain financial clarity and compliance, set up three distinct bank accounts:
- Real Estate Trust Account: For holding client funds.
- Commission Trust Account: For managing agent payouts.
- General Operating Account: For daily business expenses.
Keeping these funds separate and maintaining detailed records ensure transparency and compliance with industry regulations. It also builds trust with your agents and reinforces a culture of integrity.
Step 4: Get Regulatory Approvals and Board Memberships
To establish your brokerage within the real estate industry:
- Register with RECO (or your regional real estate council)
- Join a real estate board, like TRREB, so you can access MLS® tools and resources.
This not only legitimizes your brokerage but also provides agents with the tools and support they need to excel in their careers.
Step 5: Set Up Your Office Operations
Bring your brokerage to life with well-organized office systems:
- Front-end operations: Implement solutions for answering services (booking and confirming appointments) and MLS® brokerloading.
- Back-end systems: Invest in transaction management software for processing transactions, accounting, and bookkeeping.
A streamlined office lets agents focus on serving clients, fostering an environment where they feel supported and positioned for success
Take the Next Step With Confidence
Following these essential steps will set you up to launch a successful brokerage and create an environment where agents can excel:
- Obtain a Broker’s License
- Establish Your Business Legally
- Set Up Your Bank Accounts
- Get Regulatory Approvals and Board Memberships
- Set Up Your Office Operations
For support with real estate back-office accounting or bookkeeping, contact KP BOOKS CO. We’re here to help you succeed.
Our setup package gives you easy access to all the must-have forms and templates. It includes:
