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Team Advertising and an Unlicensed Assistant

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Team Advertising and an Unlicensed Assistant

Marcus Bell is the broker-owner of Beacon Realty in Miami. Denise, a sales associate, leads a team called 'Coastal Kings.' Kevin is an unlicensed assistant who schedules appointments, posts listings, and is paid $200 per closed transaction out of Denise's commission. One Instagram reel for a $780,000 condo shows only 'Coastal Kings' and the caption 'Call Kevin for private showings - he knows the seller's bottom line.' Kevin texts a prospective buyer, 'Seller will take $40,000 less, but don't tell the listing side.' Denise tells Marcus that team advertising is her responsibility and that Kevin 'only helps with marketing.' Marcus has no written advertising policy and has never reviewed the team's social media. A competing broker reports the ads to DBPR, and the buyer's agent complains that Kevin negotiated price terms. Marcus must decide what to correct immediately and what discipline exposure the brokerage faces.

1. Identify the violations shown by the team's advertising, Kevin's conduct, and the payment arrangement.

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Several separate violations are present. First, Florida advertising rules require a licensee's advertisement to include the licensed name of the brokerage firm. An Instagram reel showing only 'Coastal Kings' does not satisfy that requirement. A team name may be used, but the brokerage's licensed name must also appear, and any team registration requirement must be met. Second, Kevin is unlicensed but is performing activities that require a license. Scheduling appointments and delivering documents can be clerical, but telling a buyer the seller's bottom line, texting a price concession, and conducting private showings are negotiation and brokerage activities. The caption 'Call Kevin for private showings' reinforces that he is being marketed as a representative. Third, paying Kevin $200 per closed transaction from Denise's commission is compensation to an unlicensed person for brokerage activity, which Florida prohibits. Fourth, Marcus has failed to supervise. The broker is responsible for the team's advertising and for ensuring that unlicensed assistants stay within clerical limits; a broker cannot delegate that responsibility to a team leader. Denise's statement that advertising is 'her responsibility' does not transfer the legal duty. The brokerage also faces exposure for the misleading impression that Kevin is licensed and for the unauthorized disclosure of the seller's negotiating position.

2. What may Kevin lawfully do, and how may he be compensated?

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Kevin may perform administrative and clerical tasks that do not require a real estate license. Examples include answering the phone, scheduling appointments, maintaining files, delivering documents, placing signs, preparing marketing materials under a licensee's direction, and accompanying a licensee to a property. He may give factual information that does not involve negotiation, such as the address, price, and square footage if that information comes from the listing, but he should not interpret terms, discuss the seller's motivation, or quote a price other than the advertised price. He may not negotiate, solicit buyers, hold an open house alone, discuss financing terms, or advise a buyer about what offer to make. He may not be paid a commission, referral fee, or per-closing bonus for brokerage activity. He may be paid an hourly wage or salary by the brokerage for clerical work, and the brokerage should document his job description and time. If Kevin wants to show property independently or discuss terms, he must become licensed and work under a broker. Marcus should immediately remove the 'Call Kevin' language, correct the ads to include Beacon Realty's licensed name, stop the per-transaction payments, and reassign any buyer communication to Denise or another licensee.

3. What corrective plan should Marcus implement, and what discipline exposure does the brokerage face?

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Marcus should begin with a written advertising and supervision policy. The policy should require every ad, including social media posts and reels, to include the licensed brokerage name, prohibit unlicensed assistants from discussing price or terms, require broker review before a team launches a campaign, and require team names to be registered and used only with the brokerage name. He should audit all of Coastal Kings' social media and listing platforms, remove noncompliant posts, and document the corrections. He should reclassify Kevin as an hourly clerical employee or terminate the per-closing arrangement, and he should provide training to Denise and the team on unlicensed activity. He should also review commission disbursements to confirm that no unlicensed person received compensation for brokerage services. Because the brokerage's supervision failed, Marcus may face an administrative complaint, fines, probation, suspension, or other discipline, and Denise may face discipline for the advertising and the payment arrangement. The buyer's agent's complaint may support a separate claim if the buyer relied on Kevin's statement. Marcus should consult counsel, consider whether self-reporting or settlement is appropriate, and keep records showing immediate correction. A written policy that is actually enforced is the best defense to a future supervision claim.