• Attorney Suzette Reyes

FREC's New Team-Advertising Rule

Updated: Jun 16, 2020

You may have noticed some brokerages have teams or groups of realtors within those brokerages. These are not separate brokerages or a branch of the brokerage, but for those who are not in the real estate professionals, they may be misunderstood as one. This is probably why the Florida Real Estate Commission created a new rule regarding the advertising of teams or groups to make it clear whose the brokerage.

As of July 1, 2019, the Florida Real Estate Commission's new Team-Advertising Rule has gone into effect. The new rule, 61J2-10.026 Team or Group Advertising, states that teams and/or groups within a brokerage cannot have their names larger than the registered broker's name.

This rules does not only apply to the team or group's name, but applies to any logos used by the team or group. The team or group name can include the word "team" or "group" as part of the name, but they cannot contain the words: "Agency", "Associates", Brokerage", "Brokers", "Company", "Corporation", "Corp.", "Inc.", "LLC", "LP, LLP or Partnership", "Properties", "Property", "Real Estate", "Realty", and any similar word that suggest that the team or group is a separate entity from the brokerage.

Below is the rule for a more in depth review.

61J2-10.026 Team or Group Advertising.

(1) “Team or group advertising” shall mean a name or logo used by one or more real estate licensees who represent themselves to the public as a team or group. The team or group must perform licensed activities under the supervision of the same broker or brokerage.

(2) Each team or group shall file with the broker a designated licensee to be responsible for ensuring that the advertising is in compliance with chapter 475, Florida Statutes, and division 61J2, Florida Administrative Code.

(3) At least once monthly, the registered broker must maintain a current written record of each team’s or group’s members.

(4) Team or group names. Real estate team or group names may include the word “team” or “group” as part of the name. Real estate team or group names shall not include the following words:

(a) Agency

(b) Associates

(c) Brokerage

(d) Brokers

(e) Company

(f) Corporation

(g) Corp.

(h) Inc.

(i) LLC

(j) LP, LLP or Partnership

(k) Properties

(l) Property

(m) Real Estate

(n) Realty

(o) Or similar words suggesting the team or group is a separate real estate brokerage or company

(5) This rule applies to all advertising.

(6) In advertisements containing the team or group name, the team or group name shall not be in larger print than the name of the registered brokerage. All advertising must be in a manner in which reasonable persons would know they are dealing with a team or group.

(7) All advertisements must comply with these requirements no later than July 1, 2019.

Nothing in this rule shall relieve the broker of their legal obligations under chapter 475, Florida Statutes, and division 61J2, Florida Administrative Code.

Source: Florida Realtors Legal News

*Disclaimer: Villa Title & Closing Services, LLC is not a law firm and is not providing legal or tax advice in this post.  For Tax and/or Legal advice, please consult with a licensed Attorney.

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