State License Laws – team advertising must not give false impression of a standalone brokerage and must use the brokerage/company name in all advertising
BIC Supervising associated licensees and teams, have copy of team agreement drafted by lawyers
Employment Law/Policy (classifications…generally salespersons are often independent contractors and control can create non-licensed administrative employees or even employee salespersons so evaluate with brokerage/team policy and lawyers)
Agency (teams operate as a unit, so single agency, dual agency are often used for risk management reasons)
Teams are increasing per NAR (NAR 2021 statistics: 13% of brokerages have teams with a median of 3 members per team)
BICs supervise teams
Teams typically involve lead experienced salespersons and less experienced salespersons and unlicensed support/administrative workers (e.g., marketing, closing coordination).
Lawyers can draft separation "pre nup" agreements for teams and brokerages to cover issues arising when licensees depart for another brokerage or team (e.g., leads, pendings, clients, compensation) or the brokerage or team ends operations.
Lawyers can draft team operating agreements and counsel about pro’s and con’s to incorporation.
Posted by: Byron King on 12/06/22 (This information is only accurate as of 12/06/22. You must contact SCR for updates and changes to this information after 12/06/22 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.