Legally speaking: Teams — are you complying with license law?
On October 6, 2014
By Peg Ritenour, OAR Vice President of Legal Services/Administration
The OAR Legal Assistance Hotline receives an array of real estate-related legal questions — including license law issues, disclosure, contract law, ethics and commission problems, among others. In an effort to help you work within the law, our “Legally Speaking” series spotlights some of the timely questions that are being asked by REALTORS. This one involves some must do’s and don’ts relating to teams…
Q: I formed a team with three other agents. When we complete the Agency Disclosure Statement, can we just indicate the team name or do we have to list the individual agents’ names?
A: While you can indicate the team name, you need to also indicate the names of the individual licensees in that team who represent the client. Why? Because teams aren’t licensed by the Ohio Division of Real Estate and Professional Licensing. While Ohio license law allows a team name to be included in advertising, the team itself has no recognized status as a real estate licensee. And because the purpose of the Agency Disclosure Statement is to make sure that the parties to the transaction know who the licensees are and who they are representing, you need to indicate those licensees’ names on the Agency Disclosure Statement.
Q: Is the same true of listing agreements? Can we just indicate the team name or should we list the team members who will be representing the seller?
A: Again, you can include the team name, but because the team itself isn’t licensed to practice real estate in Ohio, the name of the individual agents in that team who will be acting as the seller’s agents should be indicated.
Q: I have a really large team and it may be hard to list all of the team members in the space provided on the listing agreement and Agency Disclosure form. Can I put the team name on that line and then reference an attached list of the team members who represent that client?
Tags: legal, Legally Speaking