Real Estate Teams
The number of real estate teams continues to be a growing trend and may be viewed as an appealing option to help sales productivity. However, when working with a team member, the public may be unaware that they might not be working with a separate licensed entity. DAAR supports efforts to strengthen advertising requirements and clarify operating standards of real estate teams.
- All team advertising must contain the full name of the brokerage displayed in accordance with VREB regulations. The team name in the advertisement should be directly connected to the name of the brokerage such as “The ABC Team of XYX Brokerage.” The name of the team should not contain the terms “Real Estate,” “Real Estate Brokerage,” or “Realty” or any other term that would lead the public to believe that the team is offering real estate brokerage services independent of the broker.
Identify Licensed Individuals
- If any unlicensed individuals are named in advertising for a team, the advertisement must clearly and conspicuously state which individuals are real estate licensees.
- The team office must be approved by the principal brokerage firm.
Real estate teams are a growing force in the marketing of real property. It is imperative that the public is adequately informed of 1) the brokerage firm associated with a team, and 2) who to contact should concerns occur during the course of the transaction.
According to National Association of REALTORS®, as of January 2019, at least twenty-eight states have statutes or regulations governing real estate teams or advertising by real estate teams as of January 2019. The level of regulation varies from fairly detailed to very limited where only team advertising is the subject of regulation.
The 2018 Virginia General Assembly enacted legislation to address some of the concerns that have surfaced with the increased number of real estate teams. This law requires teams to obtain a business entity salesperson’s license from the Virginia Real Estate Board (VREB) and expands the responsibilities of supervising brokers to include supervision of real estate teams.
In 2019, VREB began a comprehensive review of its regulations. This presents another opportunity to ensure teams are clearly identified to the public.
Advocate for the inclusion of stronger team advertising regulations as the Virginia Real Estate Board conducts a comprehensive regulatory review.