Contra Costa Association of REALTORS Big Event October 18, 2017
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1 Contra Costa Association of REALTORS Big Event October 18, 2017 Legal Update By, Neil Kalin Assistant General Counsel, C.A.R.
2 AGENDA 2018 Advertising Standards License Designation License # Broker Identification Team Leader Considerations Team Member Considerations Team Documentation Team Name Requirements Team Advertising Requirements Team Advertising Examples
3 2018 Advertising Standards License Designation License Designation (Broker, agent, REALTOR or abbreviation) Required in newspaper, periodical or mail Bus. & Prof. Code (a) and BRE Regulation Exception for classified rental ads with phone # or address of rental License Designation (Broker, agent, REALTOR or abbreviation) No exceptions
4 2018 Advertising Standards License # 2017 License # required on solicitation materials that are point of first contact and real estate contracts Includes business cards, stationary, flyers, websites owned, controlled or maintained by a licensee, , regular mail, leaflets, other materials intended to solicit No smaller than the smallest print Excludes print ads in newspapers and periodicals, radio ads, tv ads, cinema ads, opening section of streaming video and audio, and for sale signs on or around the property Bus. & Prof. Code (b) and BRE Regulation License # required on solicitation materials that are point of first contact and real estate contracts Includes business cards, stationary, flyers, ads on tv, in print or electronic media, for sale, for lease, open house and directional signs, and other materials intended to solicit (such as websites owned, controlled or maintained by licensee, , regular mail, leaflets No smaller than the smallest print Excludes (1) generic open house, directional and for sale signs without any licensee name and (2) signs only identifying broker but not salesperson or broker associate Bus. & Prof. Code (b) and BRE Regulation 2773
5 2018 Advertising Standards Broker Identification 2017 Identification of Broker Law no standard except for Team Name advertising NAR Standard of Practice 12-5 requires an ad to include name of firm in a readily apparent way 2018 Identification of Broker Law - Same as for salesperson license #. All solicitation material that are point of first contact must include responsible broker identity Responsible broker identity is name used in business (not name of individual designated officer of a corporate real estate broker) NAR Standard of Practice 12-5 requires an ad to include name of firm in a readily apparent way NAR Code of Ethics interpreted by local AOR, may have own view on generic open directional or open house signs
6 TEAM LEADER CONSIDERATIONS Running a business A real estate salesperson license only in legal name (not allowed to operate under a DBA) But, CalBRE allows payment by broker at direction What type of organization Sole proprietorship, LLC, Corporation, Other Consult your accountant Compliance with laws unrelated to real estate Labor laws such as wages, vacation, time-off, minimum wage, 401K, insurance, sick time Prepared to hire payroll service, lawyers, accountants, etc.
7 TEAM LEADER CONSIDERATIONS Running a business Working with other licensees in brokerage Training Supervising Mentoring Problem solving Rain making Hiring Firing Experienced, inexperienced, in-between Money Issues LEADING Expenses Income Sharing Time Issues 24/7 or not Administrative tasks Real estate focus Documenting the relationship Sharing (or not) income and expenses What happens upon termination Working within Brokerage Compensation split Consent Ultimate authority
8 TEAM MEMBER CONSIDERATIONS Working with others v Working by yourself What will you be giving up Compensation on individual transactions? Freedom to do what you want? Individual credit on closed transactions? Headaches? What will you be getting in return Leads, more business, more total income? Free time? A life? Cooperative v competitive environment? Social interaction? Be part of something Documenting the relationship Sharing (or not) income and expenses What happens upon termination Understand what you have agreed to
9 TEAM DOCUMENTATION (C.A.R. Team Agreement Draft) Term Fixed or Continuous 30 day right to terminate either Scope All except (options) member own property family specific individuals property types buyers, sellers, coordinators Preexisting Clients Termination Rights Pending transaction Future transactions preexisting clients team clients Expenses Independent Contractor (form for licensees only) Broker signs on
10 TEAM AND TEAM NAME LEGAL REQUIREMENTS Team = 1 salesperson + at least 1 other licensee One person is not a team One salesperson plus one unlicensed TC is not a team Team Name One salesperson surname (last name) One of these three words: Group Team Associates Cannot suggest independence from Broker Per CalBRE, may include words, Real Estate or Realty Team name is NOT a fictitious business name FBN cannot include salesperson name
11 TEAM ADVERTISING LEGAL REQUIREMENTS Team Name Any Team Member Full Name AND License # Broker Name As prominent as Team Name Broker license # NOT required
12 TEAM ADVERTISING EXAMPLES FOR SALE Kalin Realty Missing group, team or associates. Cannot be FBN because salesperson name in title. 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Goar Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
13 TEAM ADVERTISING EXAMPLES FOR SALE Kalin Realty Group 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Goar Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
14 Is extra word okay? TEAM ADVERTISING EXAMPLES FOR SALE Kissing Kalins Realty Missing group, team or associates. Cannot be FBN because salesperson name in title. 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Neil Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
15 TEAM ADVERTISING EXAMPLES Is extra word okay? FOR SALE Kissing Kalins Realty Group 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Neil Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
16 TEAM ADVERTISING EXAMPLES FOR SALE Kalin & Kalin Real Estate Associates Too much like a brokerage? 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Neil Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
17 TEAM ADVERTISING EXAMPLES FOR SALE Kalin Realty Group 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Goar Kalin No license # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
18 TEAM ADVERTISING EXAMPLES FOR SALE The Kalin Team 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Goar Kalin Lic. # EXPO Realty Sales License # too small per 2018 advertising rules Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
19 TEAM ADVERTISING EXAMPLES FOR SALE The Kalin Team 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Goar Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
20 TEAM ADVERTISING EXAMPLES FOR SALE The Kalin Team 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Neil Kalin Lic. # EXPO Realty Sales Broker name not as prominent as team name Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
21 TEAM ADVERTISING EXAMPLES FOR SALE The Kalin Team 3 Bdrm 2.5 Bath Pool Walk-in closets Hot tub Upgraded appliances New roof Neil Kalin Lic. # EXPO Realty Sales Neil Kalin, team leader; Goar Kalin, team member; Expo Realty Sales, broker
22 Recent Case Update RSB Vineyards v Orsi (seller did not know or disclose problems with residence converted to wine tasting room) Jacobs v Coldwell Banker (injury while viewing property) Skulason v CalBRE (posting dismissed claim on BRE website) Posada v Stone Steps (seller builder fails to disclose that work done by unlicensed contractor) (UNPUBLISHED)
23 Legal Tools Monthly Videos, Slide presentations, and Quick Guides October (coming soon) Death disclosure September Broker visual inspection and disclosure forms August Square footage, lot size and boundaries July Team Names June 2018 Advertising Standards
24
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