Is it actually time to switch brokerages as a real estate agent?

Before you do anything, get clear on the real problem you’re trying to solve. Sometimes “I hate my brokerage” is really “I need a better daily routine.” Other times it’s legit: you can’t get broker support, compliance is sloppy, fees keep climbing, or the value just isn’t there.

A switch tends to make sense when your pain is consistent and specific. If you’re constantly working around your brokerage instead of with it, that’s not a small issue. It’s a business constraint.

Also, check your calendar. Switching during a heavy closing window can be a headache. Switching during a natural lull makes everything easier, especially if you need to export data, move memberships, update marketing, and coordinate license transfer timing.

What should you review in your independent contractor agreement before you leave?

Your independent contractor agreement is basically the rulebook for your exit. Dig it up and read it like you’re looking for landmines, because sometimes you are.

Start with the termination section. Some brokerages allow immediate termination, others require notice. Then look for how commissions are handled on pending transactions. Many top real estate brokerages still pay you the agreed split, but some reduce your split or charge a post-termination transaction fee for deals that close after you leave.

Pay close attention to any “tail period” language. That can affect commissions that were negotiated while you were affiliated but closed later.

Next, look for any clawback provisions. If your brokerage paid for marketing, signage, photos, or offered a draw, the agreement may require repayment at resignation.

Finally, scan for non-solicitation language. Even if certain clauses are difficult to enforce in practice, they can influence what you can say, when you can say it, and how you approach recruiting team members or communicating with clients. If anything looks aggressive or confusing, it’s worth getting a quick legal read so you’re not guessing.

When is the best time to switch brokerages?

The cleanest time to switch is right after your last closing funds and before you sign new listing agreements. That’s the ideal window because you’re not introducing extra paperwork into someone else’s transaction.

If you have a big closing coming up and your agreement penalizes pending deals after resignation, don’t make the move harder than it needs to be. Let the deal close first. Then switch.

Also, look at annual renewals. E&O insurance, MLS and association dues, and annual tech fees can hit at specific times. If you just paid a large annual fee and you can delay the move by a few weeks to avoid double-paying somewhere else, do it. The goal is to reduce friction, not prove a point.

What happens to your listings and pending transactions when you switch?

This is the part that makes people nervous, and for good reason.

In most states, listings are held by the brokerage, not the individual agent. That means your current broker typically has the right to keep an active listing in-house when you leave. In real life, many brokers will release the listing because they don’t want to damage the relationship with the client who hired you, not the logo. Sometimes there’s a referral fee arrangement, sometimes it’s a courtesy, and sometimes they say no. You won’t know until you ask, and your agreement may influence the answer.

Pending deals almost always stay with the original brokerage through closing. You’re still the agent on record in the transaction, but the commission check goes to the old broker, who then pays you based on your exit policy. That’s why you want commission handling in writing before you resign.

Buyer relationships can usually move with you, but the paperwork matters. Buyer agreements are often between the client and the brokerage, and buyers may need to terminate and re-sign with the new firm. Handle this carefully, stay professional, and follow your local rules. If you’re sloppy here, that’s where complaints happen.

How do you protect your CRM, contacts, and digital assets before you give notice?

Assume your access can be cut off quickly. Not because anyone is trying to ruin your life, but because brokerages manage risk. Once you give notice, they may shut down your email, your CRM, and shared drives immediately.

Before you resign, export your CRM contacts to a CSV and store it on a personal drive you control. Make sure you’re not taking anything you’re not allowed to take, but your sphere and database are your business, and you should not be scrambling for phone numbers after your login stops working.

Also, pull copies of your past transaction files for your own records. You may need them for audits, disputes, or taxes down the road.

Then prep your new branding so you can relaunch quickly. Get your headshot, email signature, social profiles, and marketing templates ready so you’re not in limbo for weeks.

What should you update after the switch?

State approval is not the end of the process. It’s the start of the cleanup.

You’ll need to update your MLS and your local association membership. If you belong to multiple boards, update each one. Also don’t forget lockbox access. Supra or SentriLock reassignment is one of those annoying details that can ruin your day if you overlook it.

Next, update public profiles where consumers actually find you. That usually includes Google Business Profile, Zillow, Realtor.com, Homes.com, social media bios, and any team or brokerage directory pages that list you. If you run ads or have listing landing pages, check those too. Old brokerage branding can linger in weird places.

FAQs

Can I keep my active listings when I switch brokerages?

Legally, active listings are typically held by the brokerage, not the agent. In practice, many brokers will release a listing if the client requests it, but it depends on your broker’s policy and how the paperwork is handled.

Will I still get paid on pending transactions if I leave before closing?

Most agents are still paid, but the commission may be processed through the old brokerage and paid out based on your exit policy. Review your agreement and get the payout terms confirmed in writing before you resign.

How long does it take to transfer a real estate license to a new broker?

Some states update affiliations quickly, often within a couple of business days, while others take longer. The best way to reduce downtime is to coordinate start and end dates and make sure both brokers complete their steps promptly.

Do I have to tell my broker I’m interviewing other firms?

Usually, no, you don’t have to disclose that you are interviewing with other brokerages. Many agents keep their search private until they’ve chosen a new brokerage and signed the new agreement, since early disclosure can create unnecessary tension or risk.

What should I tell clients if I switch brokerages during a transaction?

Keep it calm and straightforward. Explain what stays the same (their contract, timeline, your involvement) and what may change (paperwork, broker supervision, who receives the commission check). Clients mainly want reassurance that their deal is protected and communication will stay consistent.