1. Teams & Risk Management

2. Team Regulations
Broker Supervision
Licensing
Advertising
Compensation
Agency

3. What is a Team? No legal definition At least one licensee
At least one other person
Work together regularly
One brokerage firm
One entity to the public
Common name

4. Who Regulates Teams? No Team-specific laws or regulations
Individual Licensees
Broker Supervision/Rules
Other State statutes

5. Broker Supervision
The principal broker shall have responsibility for the activities of the firm and all its licensees.
(18 VAC § Definitions.)

6. Broker Supervision Brokerage Office Policy Manual E&O Insurance
Supervision policies for Teams

7. Licensed Activities Showing Property Holding an Open House
Answering questions on transaction-related legal documents
Discussing, explaining, interpreting, or negotiating a contract, listing, lease agreement, or PM agreement with anyone outside the firm
Negotiating or agreeing to any commission, commission split, management fee, or referral fee.

8. Unlicensed Activities
Performing general clerical duties
Submitting listings and changes to MLS
Following up on loan commitments after contracts have been ratified
Having keys made for listings
Placing signs on properties
Acting as a courier service
Scheduling appointments

9. Unlicensed Activities
Preparing contract forms for approval by licensee
Preparing promotional materials and advertisements for approval by licensee
Obtaining required public information from governmental entities
Ordering routine repairs as directed by licensee
Performing any other activities undertaken in the regular course of business for which a license is not required
Are compensated for their work at a predetermined rate that is not contingent upon the occurrence of a real estate transaction

10. Teams – Advertising Disclosures
Licensee Electronic Media Advertising
Licensee’s name
Firm name
City and state of place of business
States of Licensure
Business Cards
Licensee Name
Firm Name
Contact Info
Licensee Print Advertising
Licensee Name
Firm Name
Signs
Firm Telephone Number

11. Team Advertising - Names
Avoid misleading consumers
Firm name must always be clearly and legibly displayed in all advertising
Avoid using confusing terms, such as realty, real estate, associates, partners, company, sales, limited, and properties.
Use of the terms “team” or “group” is less risky.

12. Teams & The Code of Ethics
Article 12:
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)

13. Teams & The Code of Ethics
Standard of Practice 12-10
REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes Internet content posted, and the URLs and domain names they use, and prohibits REALTORS® from otherwise mislead[ing] consumers. (Adopted 1/07, Amended 1/13)

14. Team Compensation
Brokers may only pay commissions to licensees, whether individuals or business entities. 

15. Teams & Agency Agency relationships – Dual or Designated?
Agency Disclosure
Additional Disclosures
Best Practices

16. Agency Relationships
Dual Agency: Occurs when one firm has a brokerage relationship with both the seller and buyer (or landlord and tenant) in the same transaction.

17. Agency Relationships
Designated Agency: An alternative to dual agency where the supervising broker assigns one licensee in the firm to represent a party and a separate licensee in the firm to represent the other party in the same transaction.

18. Agency Disclosure
Disclosure of agency and its potential consequences shall be made in writing to all parties
Written consent required
New disclosures required if agency relationship changes

19. Depends on Team structure and size!
Conflicts of Interest
Team Leader and another Team member representing two parties in the same transaction as designated agents.
Referral fees among Team members
Depends on Team structure and size!

20. Keeping Client Confidences
Different work spaces
Separate Team meetings
Limit access to client files
Training
Written Policy

21. Questions

22. Resources
Virginia REALTORS® Legal Hotline:
Virginia REALTORS® Legal Videos, Articles & Webinars:
Caveat REALTOR® with Virginia REALTORS® Podcast
iTunes
Google Play Music
Stitcher