Teams


Have you heard the team addendum changed?

 

The Duties Owed Team Addendum

 

 

Many of you have teams or are on teams.  In the past Prudential, Americana Group, REALTORS® required that ALL team members be listed on the Duties Owed Addendum.  As of 8/1/08 that changed within Americana.  Teams now need only utilize the Duties Owed Team Addendum which lists the Team Leader and the licensed team member(s) also representing the client.  NRS 645.252 and .193 instruct that a licensee who acts as an agent in a real estate transaction shall disclose as soon as is practicable the duties owed by a licensee.  The Duties Owed Team Addendum, must indicate all of the licensees working for that client.  In a Team scenario the Team Leader and assigned Team Member must each sign the Duties Owed.  (Unless the Team Leader is listing the personal real property of a Team Member, in which event the Team Member does not sign the Duties Owed Team Addendum).  The Team Leaders and the assigned Team Member both owe equal duties to the client.  Americana has developed a “Team Addendum” to allow Team Owners to list those Team Member(s) assigned to the client on the Duties Owed.  The assigned Team Member(s) and the Team Leader then owe a duty to that client
What about the Consent to Act?  Teams must utilize the Consent to Act in addition to the Duties Owed and Duties Owed Team Addendum in the event a Team Member represents a Buyer in the sale of a listing of the Team.  In that instance the Seller (often a bank) and the Buyer are BOTH represented by the Team Leader, (the Team Leader is always representing the clients of his/her Team), so the Consent to Act is required
 Forrest Barbee, our famous corporate broker wrote the attached Memo for you.

 
 
 

 

 

 

“Can I List My Own Property?”

“Why can’t I just list my own house?”

“I heard other companies allow it.”

“I will do a better job than another Seller would.”

“I know this house, and I would keep an eye on the buyer.”

“I understand it’s not against the law, just an Americana rule.” 

     

 

It’s true, you can list your own home in Nevada.  NRS 645 does not prohibit this conduct.  You are required to disclose if you are even a part owner of a property you are listing/selling. {1}  But when you sell your own listing you wear two hats.  You are both a licensee in the privileged employ with duties owed under NRS 645{2}, {3}, {4} and you are the seller.  It is a tough position.  You should not put your self in that position!  As an agent in Nevada you are not responsible for your client’s failure to disclose {5} and you shouldn’t remove that protection from transactions.

 

When you are the Seller and the Listing Agent you are held to a higher standard in comparison to when you are only the listing agent and you weaken your argument that you were not aware of an alleged defect.

 

Also, very important, if you list your own home, you must understand that you do not have any errors and omissions insurance.  That is why in Americana you are not allowed to list your own property {6},{7}It is typical that errors and omission insurance, which is not required in Nevada but will save you in the event of a major error, does not cover an agent selling their own home.  An insurance company does not want to lose the defense I discussed earlier, that is an agent is not responsible for the seller’s misinformation.  But when the seller is the agent, voila, you have a potential conflict.  Therefore the insurance companies will not defend or pay a claim, “arising out of the sale of property owned by the insured,” in other words, if you are the listing agent and you request E & O coverage for a complaint by a buyer against you and you also own the very home that sold, you do not have coverage.

 

  1. NRS 645.252 Duties of licensee acting as agent in real estate transaction. A licensee who acts as an agent in a real estate transaction: 1. Shall disclose to each party to the real estate transaction as soon as is practicable: (c) That he is a principal to the transaction or has an interest in a principal to the transaction.
  2. http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec252
  3. http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec253
  4. http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec254
  5. http://www.leg.state.nv.us/NRs/NRS-645.html#NRS645Sec259
  6. XXVIII COMMISSION POLICY ON ASSOCIATE’S PURCHASE/SALE (A) Salesperson’s Purchases and Sales on Their Own Account (1) Exclusion from Listing Self Owned Property. The Americana Group Salesperson is aware that they may never represent themselves when selling property in which they have any portion of ownership
  7. https://americenter.americanagrp.com/info/AmeriNet/ProcedureManualFrame.htm

A TRUE STORY OF HOW LISTING YOUR OWN HOME CAN DAMAGE YOU FINANCIALLY. 

 

Let me give you an example of how bad it can get.  There was a recent example where a buyer’s agent was showing property to a potential buyer.  The buyer could not qualify for any of the homes she was shown.  Eventually the buyer’s agent and buyer became friends and the buyer’s agent and buyer mutually decided that the buyer’s agent would buy a home and rent it to the buyer.  A sort of joint venture.  The buyer had a back ground in construction management, was cash strong but credit poor and the buyer’s agent was noticing quite a few good values in her search.  Soon the buyer was a partner/tenant/purchaser of the buyer agent and was living in the buyer’s agent’s home.  And, as can happen, the two began to argue.  Eventually the buyer stopped making rental/option payments and the buyer’s agent attempted to evict the buyer.  The buyer retained an attorney and filed papers to arrest the eviction and then filed suit against the buyer’s agent claiming items such as breach of statutory duty, age discrimination, breach of contract and quiet title.  The buyer, who was really only a tenant, claimed she was ‘tricked’ and that the buyer’s agent was using her.  The buyer’s agent was shocked and claimed innocence but to add insult to injury, the agent’s team leader was also named in the law suit.  Once the team leader learned she was also being sued the relationship between team leader and team member became strained.  Sounds over the top right?  Well the complaint lasted four (4) expensive years and the day before trial a settlement was reached for thousands of dollars.  The errors and omissions carrier denied the claim as the seller and the listing agent were one in the same.  The entire matter cost $50,000 hard costs, which were out of pocket expenses for the buyer’s agent and her team leader.  Think about that.  Four (4) years of your time wasted on defending false accusations. Situations like this use up space in your day, rent free.  Imagine spending 10% of every week for 4 years on creating business rather than explaining old business….obviously the creating business is more productive.

~

PREVENT THIS FROM HAPPENING TO YOU

 

Law suits come from strange places and times and they are bound to occur once in a while.  Statistically, law suits are rare.  But when they do come, it’s like a hurricane.  In this scenario I describe the buyer’s agent wanted to buy a home and then sell it to her buyer.  OK, it sounds a bit complicated, but even this scenario could have been orchestrated in a manner to limit the agent seller’s liability.  First, keep it simple, do not list your own home.  List it with another agent in your office or even your Team Leader{8}.  Second, remember, no matter what level of production you are, or how long you have been in the business, it can happen to you.  And finally never ever ever forget, you are in a privileged employ and you owe statutory duties to even those you are not directly representing.  When you wear too many hats in a transaction your duties and obligations get blurred and you can be blamed for things that you should not be.  Keep your role straight.  Are the listing agent or the seller?  Don’t be both. 


 

{8}XXVI – POLICY ON SALESPERSON TEAMS

(C) (9) Team Member Listing Another Team Member’s Home/Real Property;

(i) It is Americana’s policy that a salesperson cannot list real property that they hold a percentage of ownership. 

(ii) Team Members listing with their Team Leaders.  A team member is in a special relationship with another licensee on their Team.  A team member may be sharing profit, may be sharing listings, etc.  All Team Member are typically declared on the NRS 645 Duties Owed form on all transactions of that Team; declaring that each team member is representing each of the Team Members’ clients.  A Team Member may list their property with their Team Leader.  However the Team Member selling their property must be removed from the Duties Owed and not therefore be both the listing agent and the Seller.  

 

picture1.gifTeam Names

Question:   Me and my friend want to start a team, but our last names are Andersen and Johnson.  Can we start our team name as “The Sales Team” or “The A Team?”  (We both like Mr. T). 

Answer:  Your parents (or spouses?) will be pleased with my response.  No. Your team name must be your personal names on your real estate license! 

The reason is the NAC 645.610{i} and  NAC 645.611{ii}

All advertising in Nevada for a licensee must use the “name under which licensee is licensed” which can be your name or the Team Name.  The rules for a team name are simply, “The name must contain the last name of at least one member of the team.”  Also you may only name your team a “team” or a “group” not “associates,” for example or “congregation” or “club” or “association.” 

You might have seen the word “associates” used in the past in connection with advertisements of teams.  However, the Nevada Real Estate Division (“NRED”) has informed all licensees that the word ‘associates’ is ‘confusing to the public’ when used in a team name.  The code allows only the term “team” or “group” to advertise. 

Therefore your advertisement must include Prudential, Americana Group, REALTORS® and thereafter if you choose (because you are not required to put your own name on the advertisements) you can use the team names of:

  • Andersen and Johnson Team,” as it complies with having at least one person’s last name in the group.
  • The Sales Team,” and “The A Team” are not acceptable as they do not have ‘at least one last name,’
  • A sign yard of “Andersen Team” is acceptable and this is true even if a team member of the Andersen Team by the name of Jake Petterson is actually handling the listing, but is not on the yard sign, because Jake Petterson is on the Duties Owed Addendum of the AndersenTeam.   

But what about my website? 

Great question, a website is like a phone number.  So, you can have a noncompliant teamname in your website, such as www.theAteam.com.  But be sure and have the full site there, and I recommend a leader sentence like, “visit me at!” to be super safe.


{i} http://www.leg.state.nv.us/NAC/NAC-645.html#NAC645Sec610

NAC 645.610  Restrictions on advertising; use of name under which licensee is licensed. (NRS 645.050, 645.190) 

1.  In addition to satisfying the requirements set forth in NRS 645.315: 

(a) An advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not be false or misleading. 

(b) Except as otherwise provided in this paragraph, a licensee shall not use his name or telephone number or the name or telephone number of another licensee of the brokerage firm with which he is associated in any advertisement which contains the words “for sale by owner,” “for lease by owner” or similar words. A licensee may use his name or telephone number in an advertisement for property if the licensee has an ownership interest in the advertised property and the advertisement contains: 

(1) If the licensee is a real estate broker, the words “for sale by owner-broker,” “for lease by owner-broker” or substantially similar words; or 

(2) If the licensee is an agent, the words “for sale by owner-agent,” “for lease by owner-agent” or substantially similar words. 

(c) The name of a brokerage firm under which a real estate broker does business or with which a real estate broker-salesman or salesman is associated must be clearly identified with prominence in any advertisement. In determining whether the name of the brokerage firm is identified with prominence, the Division shall consider, without limitation, the style, size and color of the type or font used and the location of the name of the brokerage firm as it appears in the advertisement. 

(d) A licensee shall not publish or cause to be published any advertisement or place any sign that makes any reference to the availability of a specific property which is exclusively listed for sale by another broker unless the licensee obtains the prior written consent of the broker with whom the property is listed. Such consent must not be given or withheld by the listing broker without the knowledge of the owner of the property. 

(e) A licensee shall not advertise or otherwise conduct business under a name, including a nickname, other than the name under which he is licensed to engage in business. 

2.  If advertising under the name of a franchise, a broker shall incorporate in a conspicuous way in the advertisement the real, fictitious or corporate name under which he is licensed to engage in business and an acknowledgment that each office is independently owned and operated. 

3.  As used in this section, “advertisement” includes, without limitation: 

(a) Any unsolicited printed material and any broadcast made by radio, television or electronic means, including, without limitation, by unsolicited electronic mail and the Internet, billboards and signs; and 

(b) Business cards, stationery, forms and other documents used in a real estate transaction. 

{ii} http://www.leg.state.nv.us/NAC/NAC-645.html#NAC645Sec611

NAC 645.611  Advertisement of services: Use of terms “team” and “group.” (NRS 645.050, 645.190)  A licensee may use the term “team” or “group” to advertise the services provided by the licensee if: 

  1. The use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person is lawfully doing business; 
  2. The team or group is composed of more than one licensee; 
  3. The members of the team or group are employed by the same broker; 
  4. The name of the team or group contains the last name of at least one of the members of the team or group; and 
  5. The advertising complies with all other applicable provisions of this chapter and chapter 645 of NRS.