The Unlicensed Assistant With Business Cards
At a Little Rock brokerage, an unlicensed assistant named Megan answers incoming calls, quotes the list price, tells one caller 'the seller will take $10,000 less,' emails listing sheets to prospects, and hosts Sunday open houses alone when the broker is out of town. Her business cards read 'Megan Reed, Jones Homes' and do not include the brokerage's registered name. The broker says Megan is 'just helping' and pays her a $200 bonus each time a deal closes. A competitor files a complaint with the Arkansas Real Estate Commission. The broker asks what must change immediately.
1. Identify which of Megan's activities require an Arkansas real estate license and which are permissible administrative tasks.
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Licensed activities. Quoting a list price and telling a caller the seller will take $10,000 less are negotiations and price discussions that require a license. Hosting an open house alone and discussing terms with prospects is also licensed activity. An unlicensed assistant may do clerical work, schedule appointments, and deliver documents, but may not negotiate, solicit, or interpret contract terms.
Administrative tasks. Emailing listing sheets may be administrative if the content is pre-approved and Megan gives no advice or pricing guidance. Answering the phone and taking messages is also administrative. The line is crossed when she quotes terms, relays the seller's willingness to discount, or staffs an open house without a licensee present.
2. What are the broker's supervision, advertising, and compensation violations, and what immediate corrective steps should the broker take?
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Advertising. The business card 'Megan Reed, Jones Homes' omits the registered brokerage name. Arkansas advertising rules require the brokerage's registered name to appear, and a team name must not mislead the public into thinking the team is a separate brokerage. The broker must correct all advertising and cards.
Compensation. Paying Megan a $200 bonus per closing looks like compensation for licensed activity to an unlicensed person, which the broker cannot do. The broker must stop the bonus and confine Megan to administrative tasks.
Supervision. The broker is responsible for the acts of licensees and unlicensed staff. The broker should provide written supervision and training, require a licensee at all open houses, review phone scripts and marketing, and document corrective action. Because a complaint has been filed, the broker should preserve records and respond to the Commission promptly; a remediation plan is important.