Unlicensed Assistant, Team Advertising, and Referral Payments
Carolina Crest Realty LLC operates a four-agent group called the Piedmont Homes Team. The team leader, Mia, is a licensed broker. The team's Instagram ad says: 'Piedmont Homes Team - list for 1.5% - DM us for a free valuation.' The ad does not mention Carolina Crest Realty. Mia's unlicensed assistant, Jordan, answers direct messages, tells a seller 'we can list at $450,000 and charge 1.5%,' and emails a blank listing agreement. When a $9,000 commission is paid to Carolina Crest, Mia pays Jordan a $750 'marketing bonus' from that commission. The team also pays $300 to a mortgage loan officer for sending a buyer lead. A Commission investigator interviews Mia after a competing broker complains about the ad. Mia says Jordan only does marketing and that the team name is well known. The investigator asks whether the ad, Jordan's communications, and the two payments violate North Carolina licensing rules.
1. Identify which of Jordan's acts require a real estate license and explain why.
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Jordan crossed from clerical or marketing support into brokerage. Providing a list price of $450,000, quoting a commission rate, and sending a listing agreement are acts that involve negotiating or inducing a listing agreement and are reserved for licensed brokers under North Carolina law. An unlicensed assistant may perform administrative tasks and, under supervision, deliver factual information, but cannot discuss terms, advise on price, or solicit listings. The fact that Mia calls the work 'marketing' does not control; substance does. The $750 payment from a commission also suggests compensation for brokerage activity, which an unlicensed person may not share.
2. Is the Instagram ad permissible? What must be changed?
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The ad is deficient because it does not identify the licensed real estate firm. North Carolina advertising rules require brokerage advertisements to include the firm name; a team name alone can mislead the public about the licensed entity. Mia should revise the ad to include Carolina Crest Realty LLC and ensure any team name is used consistently with Commission requirements. The 1.5% fee claim can be used if it is accurate and not misleading, but it cannot imply a service or entity that is not licensed. Mia should also review all social media profiles and direct-message scripts.
3. Analyze the $750 bonus and the $300 referral payment.
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Both payments are problematic. A licensed broker may not share commissions with an unlicensed person for brokerage services. If the $750 bonus was compensation for Jordan's listing-related work, it is an illegal commission split, regardless of the label 'marketing bonus.' A true hourly clerical wage may be permissible, but not a bonus tied to a closed commission. The $300 payment to a mortgage loan officer is also a referral fee to a person who is not a licensed real estate broker; unless the loan officer also holds a North Carolina real estate license and the payment fits a permitted broker-to-broker arrangement, it violates the prohibition on paying referral fees to unlicensed persons. Mia should stop both practices and consult counsel.