Team Advertising, an Unlicensed Assistant, and an Expired License
Metro Crest Realty sponsors a team called 'The ATL Home Team.' The team leader is an associate broker. Jordan, an unlicensed assistant, hosts Sunday open houses, tells visitors the seller will 'probably take $15,000 less,' quotes the team's 2.5% compensation, and negotiates a repair request by text with a buyer's agent. Jordan's social media ads say 'Call Jordan-your ATL Home Team agent' and display the team name in letters three times larger than the brokerage name. A salesperson, Priya, whose license expired 45 days ago, continues to show homes and submit offers while her renewal is pending. The broker's written policy says all advertising must include the brokerage name and that unlicensed staff may not perform licensed activities, but the broker has not enforced it.
1. Identify the license-law violations and explain who is responsible for them.
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The firm has several license-law problems. Jordan is unlicensed but is negotiating a repair request, quoting compensation, and holding himself out as an agent. Those are licensed activities. The ads say 'your ATL Home Team agent,' which implies Jordan is licensed, and the team name is larger than the brokerage name, contrary to the firm's own policy and Georgia advertising rules. Priya's license expired 45 days ago, yet she is showing homes and submitting offers. That is unlicensed brokerage activity. The broker is responsible for supervising the team and for ensuring that only properly licensed persons perform licensed acts.
2. What tasks may Jordan legally perform, and what must be prohibited?
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Jordan may perform clerical and administrative tasks and may provide factual information that is not negotiation or advice. Open-house hosting is risky if Jordan discusses price, terms, commissions, or repairs; those discussions must be handled by a licensee. Jordan may not quote the 2.5% compensation, negotiate repair requests, or call himself an agent. Any advertising using Jordan's name must identify the brokerage and must not suggest that Jordan is licensed. The broker should give Jordan a written list of permitted and prohibited activities and require supervision at open houses.
3. What corrective plan should the broker implement for the team, the advertising, and Priya?
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The broker should immediately stop Priya from licensed activity until her license is renewed and active. The broker should verify license status for every licensee and assistant, document the dates, and remove expired licensees from team ads and MLS profiles. The team ads should be revised to include the brokerage name prominently and to remove any implication that Jordan is an agent. The broker should train the team, audit social media, and keep a written compliance file. If the expired-license activity continued after notice, the broker should consult counsel about reporting obligations to GREC. The broker should also confirm whether the team's compensation split complies with the brokerage engagement.