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How To Operate A Real Estate Team At Real
There are different ways to form successful real estate teams. That’s why Real aims to support team flexibility. Below we outline the key provisions of operating a team at Real, plus guidelines for doing so effectively and in compliance with state regulations.
Any two or more licensed Real agents may form a team. Team members may agree to partner on a transaction-by-transaction basis, across a timespan, in a specific geography or by other factors. What’s key is to be specific about the agreement.
Team members agree between themselves on their scope, roles, and compensation split.
We highly recommend a written team agreement between team members. Example: California Association of Realtors Team Agreement (Note: this is an agreement between team members and does not alter the relationship with Broker.)
An experienced agent coaches a newly-licensed agent through first three transactions: 50/50 split of the net commission income on the first three transactions; Services can include database review, 6-week plan, client shadowing, transaction coaching
Spousal team: Both agents are listed on the contract; the commission payment is paid to one agent.
Referral agreement, 25% to 50% split is paid to the referring agent
Note: Any member of a team is eligible for Real’s revenue sharing plan for agents they introduce into Real, regardless of whether that agent is a team member or not. The revenue share comes from Real’s portion of the commission split.
Prior to closing the team lead files a CDA (commission disbursement agreement) and Real facilitates direct payment to the team members.
Real must receive all commission payments for team members.
State License Law Issues Checklist
Teams must get approval from Real with respect to all advertisements.
Here are some compliance items:
- Does the team properly display the correct brokerage name?
- Do advertisements comply with any other state law requirements? Many states have strict rules against teams advertising themselves in a manner that suggests they are the broker.
- Do social media posts promoting properties listed with the team comply with state law?
Team name are a great way to build a local presence, but team names have legal and ethical considerations.
Make sure your name is not trademarked. Trademarkia.com is a free way to search.
Make sure your name is available online. GoDaddy.com has an easy domain search.
Check local state laws & NAR rules. With fines of up to $10,000, it’s important to comply. Colorado, Louisiana, Maryland, New York, South Carolina, and Washington are some states have regulation for real estate team names, and be sure to check out NAR regulations.
Is the team assuring that team members are keeping client information confidential?
Does the team know what is required when two clients of the team enter into a transaction, such as a dual agency disclosures or designated agency?
If the team is using unlicensed assistants, is the team assuring that the assistants are not engaged in activities that require a license?