Don’t get confused when working with Real Estate Agents and Teams
Its easy for a consumer to get confused or even misunderstand certain real estate marketing.
Massachusetts law does not acknowledge teams
Individual real estate agents (1 person) who refer to themselves as a Group/Team (multiple people) or those actual real estate Groups/Teams with multiple members that have Group/Team names were often being mistaken to be the name of the actual real estate brokerage, and clients were often unable to determine whether they were dealing with a real estate agent, a licensed real estate broker or the actual real estate brokerage (company). Under state laws, only a licensed broker is allowed to use a fictitious name. For example, Keller Williams, Coldwell Banker, Century 21, etc. A salesperson or broker associate (a real estate agent who works for the companies principle broker/brokerage and carries a broker license rather than a salesperson license) operating under a brokerage entity is required to name the entity after themselves. For example; John Doe, Realtor or John Doe, Real Estate Agent. By creating team names including certain words, the state real estate commissions and licensing boards believe realtors are crossing a fine line and feel that it is misleading to consumers.
Directly copied from the Mass.gov website;
Can a team use the words “realty” or “real estate” in name?
No. Best practices for Team Names:
Include the word “Team” or “Group”
•”The [blank] Team”, examples: The Tom Seaver Team, The Jery Grote Group, etc.
•Team names should not include the words “realty” or “real estate” or any similar derivation that would imply that the team is an independent brokerage.
•Team names should not indicate in any way that the team is its own business entity,
Here is a list of words that should be avoided in Team Names:
- Advisors
- Agency
- Associates
- Brokerage
- Brokers
- Company
- Consultants
- Corporation, Corp. or Inc.
- LLC, LP, LLP
- Partners, Partnership
- Properties
- Property
- Real Estate
- Realty
At all times a consumer should be able to easily identify the brokerage the team is affiliated with. This means that the brokerage the team/group is affiliated with must be identified on all marketing online and in print and must be prominently displayed. For example; The John Doe Group at ABC Realty or The Doe Team, brokered by ABC Real Estate
There is no regulatory or statutory size ratio, but brokerages may have internal policies dictating specific size requirements.
- All advertising shall include the name of the brokerage or principal broker under which the licensee is licensed to do business.
- All advertising must be in a manner in which consumers would know that they are dealing with a team or group that is part of a licensed brokerage.
- Advertising includes, but is not limited to: business cards, yard signs, websites, social media, building signs, e-mail signatures, bumper stickers, pens, etc.
Dont be confused, there is a difference between a Real Estate Salesperson and Real Estate Broker
To become licensed as a salesperson or broker in Massachusetts you must complete the appropriate education, complete the appropriate licensing application and pass the relevant examination. You must become a licensed salesperson before you can become a licensed broker. To become licensed as a salesperson you must satisfy 40 hours of education at a Board approved real estate school.
Once your class is complete the school will provide you with a “Handbook” which will verify you have completed the necessary education and provide you with information to make an appointment to take the salesperson examination with the Board’s test administrator. All information to take the test will be contained in the Handbook. Once you pass the examination you will be licensed at the test center at that time.
A salesperson who wants to be licensed as broker will follow the same practice as for salespersons. However, there are two differences.
- You must complete 40 hours of education at a Board approved real estate school (in addition to the salesperson education).
- Licensed salespeople must work for a broker for at least 3 years before they can go on to becoming a licensed broker (the salesperson sales experience must either be current or completed no more than 2 years prior to the time of broker examination and licensure). Once your education is complete the school will provide you with a “Handbook” which will verify you have completed the necessary education and provide you with information to make an appointment to take the Broker examination with the Board’s test administrator. All information to take the test will be contained in the Handbook. Once you pass the examination you will be licensed at the test center at that time.
Its easy to get confused as a consumer. If you want more information or have any real estate needs, we are happy to help. Remember, if you are looking to buy, sell or invest – Just Call The Pros