XYZ Realty is a large brokerage. Betty is the broker-in-charge and has 20 affiliated brokers in the office. Bill Starr is an affiliated broker, and he would like to recruit other brokers to work with him on transactions. Bill does not create a business entity for the team. Bill and all of his team members will advertise the team as “Bill Starr of XYZ Realty.” The team will continue to work from the office of XYZ Realty.
Question: Does Bill’s team need a firm license?
Answer: No, because there is not a separate entity for the team.
Question: Does Bill’s team need a designated BIC?
Answer: No, because there is not a separate entity for the team. Betty is already the BIC of XYZ Realty and will be the broker-in-charge of the team.
Question: Commission records will show that team members are affiliated with which brokerage(s) and with which BIC(s)?
Answer: All team members will be affiliated with XYZ Realty, with Betty as the BIC.
Question: Who will be responsible for supervising team members?
Answer: Betty is the BIC of XYZ Realty, she is responsible for supervising all brokers affiliated with the office.
Question: What company name will team members use when completing agency agreements and disclosures with consumers?
Answer: In most cases, XYZ Realty is the agent for all agency agreements with consumers including property management agreements, listing agreements, buyer agency agreements, and dual agency agreements.
Question: How may the team name be advertised?
Answer: The team’s advertising (e.g. signs, business cards, websites, etc.) must always include the name of the brokerage with which the agents are affiliated (XYZ Realty). Example: “The Bill Starr Team of XYZ Realty”
Question: Must the team name be registered as an assumed name (d/b/a)?
Answer: No, because the team name is only being used for branding. There is no change in the name of the licensed and registered entity, XYZ Realty.
Question: Is it legal for a provisional broker (PB) to be a part of The Bill Starr Team of XYZ Realty? Why or Why not?
Answer: Yes, because all team members are affiliated with XYZ Realty, at the brokerage, under the supervision of Betty BIC. As noted above, Betty BIC is responsible for supervising all the provisional brokers affiliated with the office, including those PBs who are on teams.
Question: If a PB is on the team, how/by whom must the PB receive compensation for brokerage activities performed on behalf of the team?
Answer: As required by N.C.G.S. § 93A-6, a PB may only be compensated for brokerage activities by the PB’s supervising BIC. Thus, only Betty may legally pay the PB for brokerage activities.
If you would like to review additional case scenarios about teams that are licensed business entities, please review “Provisional Brokers on a Team” on the Commission’s website.
If you have additional questions about how to advertise as a team, please contact Regulatory Affairs at email@example.com.