Broker Checklist for Possible Team Legal Issues

State License Law Issues:


  • Does the team properly display name of brokerage? Does the advertisement contain other required information?
  • Do advertisements comply with any other state law requirements, such as font size?
  • Do social media posts promoting properties listed with the team comply with state law?

Laws Regulating Teams:

  • Does team name comply with state law?
  • Does the team meet other requirements of state law, which may include appointing a team leader, registering the team with the state, and/or identifying team members?


  • Is the team assuring that team members are keeping client information confidential?
  • Does the team know what is requited when two clients of the team enter into a transaction, such as a dual agency disclosures or designated agency?

Unlicensed Assistants:

  • If the team is using unlicensed assistants, is the team assuring that the assistants are not engaged in activities that require a license?

Payment of Commissions:

  • Is the broker receiving commission payments for the team? Are the commissions paid to members split pursuant to the written agreement between the broker and the team members?

Employment Law Issues:

  • Is the team respecting the independent contractor status of the salespeople?
  • If the team leader is micromanaging the actions of team members, should the salespeople become employees of the brokerage?
  • If team members are being paid by commission, are they providing licensed services? If not, should those team members be classified as employees of the brokerage?

Download this checklist as a PDF. (PDF: 204.14 KB)