Referral activity is not the same as listing or selling

A referral-only associate does not personally market listings through the MLS, show property, prepare offers or negotiate contract terms. Those duties belong to the active agent who receives the referral.

Because the role is limited, traditional MLS tools may not be needed. That does not automatically cancel a contract, subscription or dues obligation.

What does LFRO status change?

NAR recognizes a Limited Function Referral Office exception within its REALTOR® dues framework for certain eligible, certified referral-only operations. Specific conditions apply, including strict limits on activities, certification and the required relationship to the REALTOR® brokerage.

Your local association must evaluate and administer any applicable dues exclusion. Read our plain-English LFRO guide.

Before ending an MLS or association membership

Confirm whether you qualify for the applicable exemption, understand any outstanding contractual obligations and get the required paperwork handled with the relevant association or MLS.

An LFRO is a membership classification, not a special DRE license. Your California license still needs to be valid and appropriately affiliated.

How NEXA approaches referrals

NEXA’s program restricts affiliates to broker-supervised referrals rather than active transaction services. Ask about current eligibility, the written program terms and any association-processing requirements before changing your existing memberships.

Important: This information describes NEXA’s published program and general California referral-only considerations. It is not individualized legal, DRE, NAR, MLS or tax advice. Eligibility, association dues and compensation depend on your circumstances and the executed program documents.