The Greater San Diego Association of REALTORS® strives to ensure our members are informed of the latest industry trends, challenges, threats and opportunities, as well as the tools and education to be successful. SDAR works diligently to guide our members in safe, best practice and ethical means of doing business. As part of that ongoing effort, we want to call your attention to the ongoing California Bureau of Real Estate’s crack-down on noncompliant Real Estate Teams.
As stated in the CalBRE Spring 2018 Real Estate Bulletin:
COMMISSIONER TO FORM CALBRE ENFORCEMENT TASK FORCE TO ADDRESS— AND TAKE APPROPRIATE DISCIPLINARY ACTION AGAINST—‘TEAM NAME’ AND RELATED ADVERTISING AND BRANDING VIOLATIONS BY SALESPERSONS AND THEIR RESPONSIBLE BROKERS
Real Estate Commissioner Wayne Bell will form an internal enforcement task force at the California Bureau of Real Estate to focus on, address, and to take appropriate remedial and disciplinary action against those real estate salespersons (and the brokers who are responsible for the real estate-related activities of those salespersons) who violate the clear requirements for the use of a team name set forth in section 10159.6 of the California Business and Professions Code. The enforcement task force will also tackle branding and false advertising practices of salespersons and collaborating brokers who mislead the public into believing the salespersons are brokers or can act independently of their responsible brokers
(http://www.bre.ca.gov/files/pdf/reb/rebspring18.pdf)
In conversations with members of SDAR’s Risk Management Committee, BRE executives indicate that the BRE will be taking immediately disciplinary action against violators through the mechanical cite and fine policy. Under cite and fine policy (http://www.dre.ca.gov/Licensees/CiteandFine.html), violators may be assessed a fine up to $2,500 per citation and ordered to take immediate corrective action, without prior warning or formal adjudication.
In light of the BRE’s stated Zero Tolerance approach to cracking down on non-compliant Real Estate Teams, all team leads should immediately discuss these issues with your broker. Furthermore, all brokers and agents are encouraged to review the California Association of Realtor’s® Q&A on Team Names:
https://www.car.org/en/riskmanagement/qa/broker-practice-folder/teamnames and consult with their legal counsel if necessary.
