Team Names – Compliance Guidelines

The following information below is a summary of the article Fictitious Business Names and Team Names published on CAR.org as of 10/30/2015 as it relates to Team Names.  Fictitious Business names is covered under a different post.  Please view the article on CAR.org to find any updates.  You must log in to CAR.org view this article.  Please also see DRE Advisory on this topic.

Q. May an DRE agent use a team name?

A. Yes, but only after reviewed and approved by the agent’s broker.

Q and A from CAR.or

Q 32. What is a Team Name?

A A team name is “a professional identity” or “brand name” used by a salesperson and at least one or more other licensees that meets the following requirements:

• The name includes the surname of at least one of the licensee members of the team and that name is used in conjunction with the term “associates,” “group,” or “team.”
• The name does not include any term or terms, such as broker or brokerage that would lead a member of the public to believe that the team is offering real estate brokerage services, or that implies the team is operating independent of the real estate brokerage of which it is a part.

(Cal. Bus. & Prof. Code § 10159.7).

Some examples of names that could meet the requirements of the law, are the “Garcia Group,” the “Nguyen Team,” or “Smith and Associates.”  However a name like the Garcia Brokerage Group would violate the law as it suggests that the team is offering real estate brokerage services or is itself an independent real estate brokerage. (Cal. Bus. & Prof. Code § 10159.7).

Teams must operate under a brokerage and the broker continues to have the duty to supervise the team and its members.

Q 33. Does the Cal DRE have to approve the team name?

A No, effective January 1, 2015, as long as the requirements listed in question 32 are satisfied, a broker may permit salespersons to use a team name without having to submit the name to be approved as a fictitious name by CalBRE. (Cal. Bus. & Prof. Code § 10159.7).

Q 34. May a broker prohibit her or his salespersons from using a team name?

A Yes, the broker retains the right to prohibit her or his salespersons from using team names.

Q 35. Are there special requirements when using a team name in advertising?

A Yes.  If a team name is used in advertising, all the following rules apply:

• All advertising and solicitation materials which include the team name including print or electronic media and “for sale” signs, must include the team name, and the name and license number of at least one of the licensed members of the team all of which must be displayed in a conspicuous manner.
• The name and license number of the brokerage under which the members of the team are a part, must be displayed as prominently and conspicuously as the team name in all advertising and solicitation materials.
• The advertising and solicitation material must not contain any terms that imply the team is a real estate entity independent of the responsible broker.

(Cal. Bus & Prof. Code § 10159.6).

Q 36. Does a team name still need to be registered as a fictitious name with the county?

A No. The law states decisively that a team name is not a fictitious business name (DBA) under the real estate law or any other law. Thus, it is not necessary to register a team name as a DBA at the county recorder, nor is it necessary to apply with the Bureau of Real Estate for use of the team name, as long as all the other rules outlined above are followed.

Q 37. Previously, the DRE allowed the approval of team names that were recorded with the county clerk and submitted to the DRE per their Spring 2013 Real Estate Bulletin even though the team name included the name of a sales agent. Will the DRE continue to approve team names in this way?

A No. The DRE has issued an advisory stating that they will no longer implement this policy.  (See the DRE’s “Advisory and Guidance to Licensees Regarding Senate Bill 146” http://www.dre.ca.gov/files/pdf/AdvisoryAB2018.pdf)