Recently, the California Bureau of Real Estate reissued its “Guidelines for Unlicensed Assistants who Work in the Real Estate Industry.” The Bureau did so in recognition of the fact that the trend of real estate licensees using the services of unlicensed assistants is continuing upward. Indeed, the increasing occurrence of real estate “teams” has probably accelerated the phenomenon.
The Bureau also felt it appropriate to remind brokers and designated officers that they are “charged with the responsibility to supervise and control all activities performed by their employees and agents in their name during the course of a transaction for which a real estate license is required, whether or not the activities performed require a real estate license.” The introduction to the guidelines notes, “Broker knowledge and consent is a prerequisite to the performance of these unlicensed activities, since without these elements there can be no reasonable assurance that the activities performed will be limited as set forth below.” Which is to say: Brokers, if you have agents using unlicensed assistants, you had better know what they are doing!
The acceptable and unacceptable activities are divided into categories. We summarize them as follows.
Cold Contacting: Unlicensed assistants [hereinafter, UAs] may use phones or electronic media to canvas for interest in using the services of a real estate broker. If a contact has an interest, the UA should refer the contact to the licensee, or schedule an appointment for him or her. At no time may a UA attempt to induce the person being called to use the broker’s services.
Open Houses: With the principal’s consent, a UA may assist a licensee at an open house by placing signs, greeting the public, providing factual information from or handing out preprinted materials prepared by or reviewed by the licensee, or arranging appointments with the licensee. Only a licensee may show or exhibit the property, discuss terms and conditions of a possible sale, or discuss other features of the property.
Comparative Market Analysis: A UA may make, conduct, or prepare a comparative market analysis subject to the approval of, and for use by, the licensee.
Communicating with the Public: UAs may provide factual information to others from writing prepared by the licensee. A UA may not communicate with the public in a manner designed for solicitation purposes with respect to a specific property, transaction, or product.
Arranging Appointments: UAs can make appointments for licensees to meet with principals or parties to a transaction. They may arrange for and order reports and services from third parties in connection with a transaction.
Access to Property: With the principal’s consent, UAs may be present to let into the property a person who is to inspect, prepare a report, or perform work in connection with the transaction. Any information provided about the property must be provided by the licensee.
Advertising: UAs can prepare and design advertising, as long as the advertising is reviewed and approved by the licensee.
Preparation of Documents: UAs may prepare and complete documents and instruments, provided such work is directed and reviewed by the licensee prior to their use.
Delivery and Signing Documents: UAs may mail, deliver, or pick up transaction-related documents, including obtaining signatures. These activities may not include a discussion with a principal or party to the transaction of the content, relevance, importance or significance of the document.
Document review: A UA may review, as instructed by the licensee, transaction documents for completeness or compliance, provided that the final determination is made by the broker or licensee.
Bob Hunt is a director of the California Association of Realtors®. He is the author of Real Estate the Ethical Way. His email address is This email address is being protected from spambots. You need JavaScript enabled to view it..
