New Rules are Coming for Florida Real Estate TeamsAre you Ready for This Disruptive Change in 2018?
On June 18th 2018, the new FREC rule for team advertising was approved and goes into effect on July 1, 2019.
Part 1: Rule Overview
Administrative rule 61J2-10.026 dictates new guidelines about how teams within a real estate brokerage must advertise.
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 but is not required in the final rule.
- 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The current advertising rule is out of date, here is the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
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
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?
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/teamrulesPosted 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/teamrulesPosted 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/teamrulesPosted by Mainframe Real Estate on Wednesday, November 8, 2017
Timeline of Events
December 13, 2017
On December 13th, FREC voted to approved the most recent version of the draft rule. The Joint Administrative Procedures Committee (JAPC), which oversees executive branch actions to ensure they have an “adequate statutory basis” along with other requirements. It’s unclear how long a final JAPC decision will take.