Unlicensed Assistant, Team Advertising, and Broker Supervision
Nia is a newly licensed affiliate broker at Volunteer Homes. Her principal broker leaves for three weeks and tells her to “keep things running.” Nia’s unlicensed assistant, Casey, answers the office phone, posts listing ads on social media under the team name “The Home Squad” with Nia’s cell number, schedules showings, and hosts a Sunday open house alone. At the open house Casey tells a visitor, “The seller will probably take $10,000 less,” and hands over tax records. Nia pays Casey $200 after each closing from Nia’s commission split. One ad says “Call The Home Squad-your neighborhood experts” and does not name Volunteer Homes. Nia has not reviewed the ads or open-house script.
1. Identify the license-law problems in Casey’s activities.
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Casey is unlicensed, so she may perform clerical and administrative tasks but may not do brokerage activities. Quoting a likely acceptable price, discussing terms, negotiating, or giving advice about the property requires a license. Hosting an open house alone is risky; if Casey discusses property details or terms, she has crossed into unlicensed activity. Handing over tax records with a price opinion compounds the problem.
Answering the phone and scheduling showings may be clerical if she does not negotiate or interpret terms. Nia or another licensee should supervise and should ensure any open house is conducted by a licensee who can answer substantive questions.
2. What is wrong with the advertising and the team name?
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The ads are brokerage advertising. They must identify the licensed brokerage, Volunteer Homes, and should not mislead the public into thinking “The Home Squad” is the licensed brokerage. Team names may be used only in a way that clearly includes the brokerage’s licensed name and complies with Tennessee Commission advertising rules.
Nia and the principal broker are responsible for reviewing advertising. The social posts, signs, and open-house materials should include the brokerage name and accurate contact information. Nia should correct or remove the noncompliant ads.
3. What about paying Casey $200 per closing, and what should happen while the principal broker is away?
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A licensee may not share commissions with an unlicensed person or pay compensation for brokerage services. Paying Casey $200 per closing looks like compensation tied to transactions, not hourly clerical pay, and is prohibited. Casey may be paid an hourly or flat rate for clerical work only.
The principal broker must supervise the office. If the broker will be away, a licensed broker must be placed in charge under the brokerage’s policies and Tennessee requirements. Nia, as an affiliate broker, should not assume principal-broker duties without authority. The office needs written supervision, advertising review, and a clear list of what Casey may and may not do.