New Rules are Coming for Florida Real Estate Teams

Are you Ready for This Disruptive Change in 2018?
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According to Public Records Requests, FREC is expected to vote and adopt this final rule during their december meeting.

Part 1: Proposed Rule Overview

The proposed rule for team advertising is still being tweaked by FREC during monthly meetings, but could be passed by vote before the end of 2017. Administrative rule 61J2-10.026 dictates new guidelines about how teams within a real estate brokerage must advertise. Once it’s passed by vote of the commission, the rule will be effective within 12 months.

 

Here are the most disruptive changes

  • Team Names may include the word ‘team’ or ‘group’ in the name. *These words were required in past drafts and now optional with the fourth proposed draft. 
  • Team names cannot include the following words: Agency, Associates, Brokerages, Brokers, Company, Corporation, Corp., Inc., LLC, LP, LLP, Partnership, Properties, Property, Real Estate, Realty, or similar words suggesting the team or group is a separate real estate brokerage or company.
  • The Team name or logo cannot be larger than the brokerage name or logo on any advertisements
  • Team leaders will be responsible for team advertising
  • The broker must keep a current record of each team and all its members
  • Any agent that is not working under only their legal first and last name is considered to be working under a team name and all of these rules apply

part 2: how we got here

There seems to be a lot of confusion about real estate advertising rules. A lot of that confusion comes from lack of support and guidance from brokers. But the trend of real estate teams has also not applied to current advertising rules.

The current advertising rule is out of date, here is the jist of it.

  • If an agent uses their first name in advertisements, then they must use their last name
  • The brokerage name must appear near the agent’s name and contact information
  • … And that’s about it!!

The current rule just doesn’t apply to teams, which is why FREC must change the rule in order to have team advertising adhere to the same standard as individual agent advertising.

Let’s make a few things clear about teams

  • Teams are not legal entities
  • Team have no tax ID number
  • Teams don’t have a real estate license
  • Teams are simply working under fictitious names

It’s easy to see how the average consumer might think they are working with a real estate brokerage when they are not. This confusion to consumers is the key problem that FREC is trying to correct with the proposed rule. 

part 3: What is a team to do? 

These proposed rules will be incredibly disruptive to real estate teams and some of the brokerages that will be most affected are not taking proactive measures to inform and protect its agents.

Agents will be asking themselves:

  • If I have to rebrand my team to meet the new name restrictions, is it worth rebranding at all?  It will cost a lot of time and money, but we are still dealing with the bigger question…
  • Why would I have a team brand if my company brand must be predominant? 
  • If my company’s brand must be predominant, am I proud to stand behind my company’s brand, or should I consider changing companies?  

Have a Question?

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Video: Part 1

New Rules are Coming for Florida Real Estate Teams: Part 1 - ...

New Rules are Coming for Florida Real Estate Teams: Part 1 - Rule OverviewUpdates on this can be found at http://mainframere.com/teamrules

Posted by Mainframe Real Estate on Wednesday, November 8, 2017

Video: Part 2

New Rules Are Coming for Florida Real Estate Teams: Part 2 - How We Got Here. Updates on this can be found at http://mainframere.com/teamrules

Posted by Mainframe Real Estate on Wednesday, November 8, 2017

Video: Part 3

New Rules Are Coming for Florida Real Estate Teams: Part 3 - What's a Team To Do?Updates on this can be found at http://mainframere.com/teamrules

Posted by Mainframe Real Estate on Wednesday, November 8, 2017

Timeline of Events

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November 15, 2017

FREC proposes version four of the draft rule and agrees that it will likely be the final version for vote in December. 

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October 18, 2017

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September 13, 2017

FREC meeting was cancelled due to hurricane Irma and the September agenda was pushed to the October meeting.
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August 16, 2017

FREC amends the original draft rule and proposes version two of draft rule.
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June 21, 2017

FREC resumes the topic of team advertising and proposes version one of the draft rule.
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June 24, 2016

FREC holds its first workshop on team advertising and initially suggests that they will propose legislation to change team advertising.