Some teams operate like a team of two salespersons.
Some teams operate like a brokerage or a company with employees.
Because team owners/leaders may not have BIC or employer experience, ensure that you have your structure reviewed by lawyers (e.g., hotline, employment lawyers, business lawyers).
Remember that once team members, licensed or unlicensed, start doing employee type of work (e.g., scheduled, regular, transaction coordinator, full time, part time) begin doing employee type of work, they are no longer gig workers, no longer independent contractors.
Remember that unlicensed individuals cannot be compensated for licensee tasks.
On the hotline, large teams often encounter the same issues that brokerage encounter (e.g., compensation disputes, dissolving disputes, separation disputes) so it may be prudent for teams to develop lawyer drafted operating agreements, policies, and separation/dissolving agreements, partner agreements, joint venture agreements, file access/ownership, information access/ownership, copyright/trademark agreements, etc.
Remember that LLR SCREC does not allow teams to mislead consumers that the team is a stand alone brokerage (e.g., always clearly communicate your brokerage).
Posted by: Byron King on 06/21/23 (This information is only accurate as of 06/21/23. You must contact SCR for updates and changes to this information after 06/21/23 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.