If you’ve been in real estate long enough, you’ve probably heard agents say things like:
- “I’m going referral only.”
- “I’m hanging my license.”
- “I can’t do transactions unless I’m a Realtor.”
- “If I drop my Realtor membership, I can’t sell real estate anymore.”
Let me clear this up as your broker:
A lot of confusion in real estate comes from agents mixing up Realtor Association rules with state licensing law. These are not the same thing — and treating them like they are creates unnecessary restrictions, misinformation, and frustration.
This is especially important for agents working across states like Florida, Georgia, and Alabama, where rules can vary by MLS and association — but state licensing authority always remains the same.
1) Realtor Associations Are Trade Associations — Not Licensing Authorities
A Realtor Association is a trade association. It exists to provide membership services, professional standards, and access to certain tools and systems — but it does not issue your license and it does not regulate your legal ability to perform real estate services.
Only the state real estate commission has the legal authority to determine what a licensed real estate agent can and cannot do.
That means:
If you hold an active real estate license, your license remains fully valid whether you are a Realtor or a non-Realtor.
Your ability to legally perform real estate services is determined by your state license and your brokerage policies, not by association membership.
2) Realtor vs Non-Realtor: What’s the Real Difference?
Here’s the simplest way to understand it:
- Realtor = a licensed agent who is also a member of the National Association of Realtors (NAR) and their local association
- Non-Realtor = a licensed agent who is not a member of the Realtor Association
Both are still licensed real estate agents.
Both can legally perform real estate services if their state license is active and their brokerage permits it.
Where the confusion starts is when people assume Realtor membership controls licensing.
It doesn’t.
3) “Referral Only” Is Not a Legal License Status
This is one of the most misunderstood terms in real estate.
“Referral only” is not a legal status under Florida, Georgia, or Alabama licensing law.
It is an industry term that people use to describe how they choose to operate — usually because they want to step back from production, avoid certain expenses, or minimize involvement.
But here’s the truth:
If your license is active, you may legally perform full real estate services.
Whether you choose to do full transactions or only referrals is a business decision — not a state-imposed restriction.
The real issue:
Some brokerages treat “referral only” as a rigid internal category and may restrict agents to referrals even if the agent’s license is active.
That’s not state law.
That’s a brokerage policy.
4) “Hanging Your License” Doesn’t Restrict Your Legal Ability to Work
Another term that gets used loosely is “hanging my license.”
Most of the time, agents mean one of two things:
- They want to step away from active production
- They believe association membership rules prevent them from doing transactions
But in reality:
If your license is active, you are still licensed.
You are not “less licensed” because you’re non-Realtor.
Your activity is determined by your state license and your brokerage rules, not trade association terminology.
5) MLS Access Is a Separate Issue (And Depends on the MLS)
Let’s address the one area that does create real-world confusion:
MLS access depends on the rules of the local MLS and/or Realtor Association.
It is not controlled by the state licensing board.
So while you may legally perform real estate services as a non-Realtor, access to MLS systems may require membership — depending on the specific MLS.
If MLS access matters to you, the best approach is simple:
Contact the MLS or Realtor Association directly and ask what membership requirements apply in your market.
That way, you get the correct answer from the source that controls MLS access — not from hearsay.
6) Realty Hub’s Policy: Realtor Membership Is Optional
At Realty Hub, Realtor Association membership is not required.
We work with agents who are:
- Realtors
- Non-Realtors
- Full-time producers
- Agents who mainly focus on referrals
- Agents who want to step away temporarily but still remain licensed and able to transact
And we are very clear:
Your ability to conduct real estate services is not restricted by Realtor status as long as your license is active and the activity is permitted by brokerage policy.
Realty Hub allows agents to engage in:
- Residential sales and leasing
- Commercial sales and leasing
- Land transactions
- Referrals
Realty Hub does not permit:
- Property management that involves collecting or holding funds for third parties
- Business brokerage
If you choose to be a Realtor, we accommodate that.
If you choose not to be a Realtor, we accommodate that too.
The choice is yours — and your ability to legally conduct transactions is not affected by that decision.
The Bottom Line (Read This Twice)
Here’s the clean truth:
The state real estate commission controls licensing authority.
Realtor Associations are trade associations, not regulators.
“Referral only” is an industry term, not a legal status.
“Hanging your license” does not restrict your legal ability to work.
Your activity depends on your active state license + your brokerage’s policies.
MLS access may have separate membership requirements depending on the MLS.
And at Realty Hub, we don’t play games with terminology or restrict agents based on association politics.
We focus on what matters: the law, the license, and clear brokerage policy.
Disclaimer
This article is for general informational purposes only and is not legal advice. Always consult your state real estate commission rules and your brokerage policies, and contact your local MLS or Realtor Association directly for membership and access requirements.
