The C.A.R. Bylaws mandate Designated REALTORS® (Brokers of Record) establish a separate entity for their Limited Function Referral Office (LFRO) agents. The separate entity may be a DBA or a Corporation.
In order for the Broker not to be invoiced the non-member assessment fee of $445 for each licensee listed as a Referral Agent and for the licensee to qualify as a LFRO, the Designated REALTOR® (Broker) is required to certify in a written statement (via a LFRO Certification Form), that the LFRO agents are: 1) working for a separate entity (dba/corporation must be active with the CalBRE); and 2) are engaged exclusively in soliciting and or referring clients. The licensee(s) in the entity must not be engaged in listing, selling, leasing, renting, managing, counseling, or appraising real property.
The Designated REALTOR (Broker) needs to establish a DBA with the CalBRE if a LFRO Certification Form was previously submitted using an entity that is already being recognized as a Real Estate firm and/or a temporary fix; for example: “Your Name, Broker”, “Your Name, LFRO”, or “Your Name, Referral”.
How to Set up a DBA:
- Visit the Orange County Clerk-Recorder's Office online.
- Select "Fictitious Business Names" under the Popular Links menu. This page includes the online application, along with instructions for setting up the DBA.
- Publish the information regarding your DBA in at least one local newspaper. The DBA notice must be published for four consecutive weeks.
- The Broker will need to add the new DBA with the CalBRE. Go to www.bre.ca.gov and use eLicensing for expedited processing of additions and changes. Brokers will need to create a username and password with the CalBRE (if they haven't already). Once logged into eLicensing, Brokers can add the new DBA by selecting: Broker Main Office Address Addition/Changes.
- Complete the LFRO Certification with the referral firm name and those agents that qualify for referral status.
- Submit this completed form to OCAR.