The Unlicensed Assistant Who Runs the Open House
At a brokerage in Prince Albert, Chris is a licensed salesperson and Dana is an unlicensed assistant. Chris is out of town at a closing and asks Dana to host a Saturday open house at a $349,000 listing. Dana is told to greet visitors, answer questions about the seller’s motivation, tell them the seller will ‘probably take $15,000 under list,’ and sign Chris’s name on the guest register. Dana also updates the online listing description and drafts a feature sheet. The office manager says it is fine because Dana has worked in real estate for 10 years and Chris will be reachable by phone. Dana has not been registered and will not be paid commission. Chris’s broker is also away and has not reviewed the plan.
1. Which of Dana’s assigned activities may an unlicensed assistant perform, and which require registration?
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Dana may perform administrative and clerical tasks, such as preparing routine paperwork, scheduling appointments, distributing pre-approved factual material, and helping with security at a property. She may not perform activities that require a real estate licence. Hosting an open house in the sense of representing the seller, answering questions about motivation, price, or terms, and encouraging visitors to make offers is trading in real estate. Telling visitors the seller will ‘probably take $15,000 under list’ is negotiating or disclosing confidential pricing information and is clearly licensed activity. Signing Chris’s name is also improper because it misrepresents who is providing the service and could amount to a false document. Updating the online listing description and drafting a feature sheet may be permissible only as clerical support, with the content reviewed and approved by a licensed salesperson or the broker. Dana must not hold herself out as licensed.
2. What should the brokerage do before the open house proceeds?
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The brokerage should stop the plan as assigned. A licensed salesperson must host the open house or be physically present and responsible for the licensed activities. Chris should not delegate representation to Dana by phone. The broker should review and approve any advertising, including the online description and feature sheet, before publication. Dana should be given clear written instructions on what she may and may not say, and she should redirect all questions about price, terms, condition, and offers to the licensed salesperson. The guest register should be signed by the licensed salesperson or left unsigned. If the brokerage cannot arrange licensed coverage, the open house should be cancelled or rescheduled. The brokerage should also document the correction so that the office manager’s earlier approval does not become the brokerage’s standard practice.
3. What supervisory obligations does the broker have, and what are the compliance risks if the plan goes ahead?
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The broker is responsible for supervising the brokerage’s licensed and unlicensed staff and for ensuring that only licensed persons perform licensed activities. That includes having written policies on unlicensed assistants, reviewing advertising, and correcting improper delegation even when the broker is away. If Dana hosts the open house as planned, the brokerage risks discipline for permitting unlicensed trading, misrepresentation, and inadequate supervision. Statements about the seller’s willingness to discount could also breach confidentiality and harm the seller’s negotiating position. Chris risks discipline for aiding the unlicensed activity and for signing or permitting signature by another person. The brokerage should designate an alternate supervisor when the broker is away, train Dana on her limits, and keep a record of the corrective steps.