BROKER DUES FORMULA
Thank you for growing our association! The broker dues formula was established in 1972 to ensure that brokerages contribute their share of the cost of membership benefits. While HRRA third party bills your agents as a service to you, all dues collected from your agents are applied to your dues obligation. So just what is your obligation as a broker, designated REALTOR® (DR) of a REALTOR®?
In A Nutshell
- The DR dues formula computes dues based on the size of a REALTORS® firm, i.e., the number of individuals licensed with the DR, to ensure dues are proportional to the benefits and services received by a firm for the DR’s REALTOR® membership.
- The Limited Function Referral Office [LFRO] policy is a limited exception to the Designated REALTOR dues formula. ( The LFRO policy is for those agents who are licensed for referral only and do not list, show, sell or appraise property)
- Local, State, and National dues are collected by local associations.
Under the dues formula, the DR pays a total dues obligation based on number of licensees in the firm, but gets a credit against the amount due for each individual licensee who chooses to individually hold REALTOR® membership. The licensees that choose to hold REALTOR® membership pay their dues individually to the association.
In addition, the local and state associations may collect an application or initiation fee. Assessments are another fee that some association may use to pay for special projects such as a new building. Currently, HRRA and VAR do not charge any assessments, however, NAR does. NAR charges each member a consumer awareness assessment fee of $35. This funds a nationwide consumer advertising campaign that includes TV network and cable ads highlighting the value a REALTOR® brings to a transaction and stressing the importance of using a REALTOR®. Note that the entire $35 portion of dues related to public awareness qualifies as deductible dues.
For 2021, with NAR dues at $150 per member, NAR computes 38%, or $57, to be nondeductible for income tax purposes due to NAR’s lobbying efforts.
Each month a portion of a new member’s dues are pro-rated. HRRA does not charge a new member for the month he/she joins.
To download the new member 2021 dues matrix which displays a break-out of the dues and application fees collected click here.
Your agent will need to select if he/she would like to enroll in the payment plan or pay in full.
Total New Member Dues for 2021 by month if paid in full at the time of joining:
April – $1165.50
Please direct your agent to the “Join HRRA” page on this website by visiting the home page and choosing the Who We Are tab. Questions can be forwarded to: firstname.lastname@example.org.