8.1 Personal Assistants #
You may find hiring a personal assistant to be helpful to your business. In hiring a personal assistant, you become an employer and have employer responsibility in that relationship. Interviewing, hiring, and contracting with the assistant will be solely up to you. You agree that any assistant you hire will be required to abide by this Policy Manual. If your assistant engages in any conduct that would violate this Policy Manual, or in any way acts in a manner to bring disrepute or potential liability to the Company, the Company reserves the right to demand that you terminate the assistant or otherwise prohibit him/her from entering the office for any reason, at any time.
Any compensation due the assistant shall be arranged between you and your assistant and will be your sole responsibility.
A growing trend in the real estate business is for high producing agents to use specific persons as their assistants and/or to associate with other licensees as a “team.” The Company encourages the appropriate use of personal assistants and teams as a tool for high earning agents to be even more productive. Several caveats are in order from the perspective of the company. Many of the distinctions are based on whether a licensed or unlicensed assistant and/or team members are used. The Company, policies on the use of personal assistants and/or teams is as follows:
- Employee vVs. Independent Contractor: Whether licensed or unlicensed, the agent must decide whether to associate with the personal assistant or team member (hereafter “PA/TM”) as an employee or independent contractor.
Serious considerations exist including the right of control, method of payment, and direction of the work if the agent chooses to have an independent contractor PA/TM. The Company strongly urges the agent to consult with her/his tax consultant to determine the proper procedures in making this choice. If independent contractor status is chosen, all of the issues mentioned above regarding withholdings, unemployment taxes, worker’s compensation, and automobile insurance should be clear in the arrangement between the agent and the PA/TM.
If employee status is chosen, the agent should be aware that all employment taxes, withholding reports, unemployment tax reports, workers’ compensation insurance, reports, and W2 forms are the responsibility of the agent. The Company is not a party to the arrangement between the agent and PA/TM and will not be responsible for any employment activities of the agent.
- Unlicensed Personal Assistants/Team Members: The policy of the Company is that personal assistants or team members who do not have active licenses WILL NOT UNDER ANY CIRCUMSTANCES engage in the practice of real estate services as defined in the real estate licensing law. The agent associating with the PA/TM is strictly responsible for maintaining this policy. If an unlicensed PA/TM performs any service which constitutes the practice of licensed real estate activities, the agent puts her/himself in jeopardy of disassociation. The state real estate regulators have taken a position as to the types of things unlicensed office personnel may and may not do. Please review the state policies to determine the items that apply to you. The policy of the Company is that unlicensed personal assistants fall into the same category as unlicensed office personnel.
The agent is further advised that unlicensed persons may not be paid any fees or commissions for any work done. The company will not split commissions with an unlicensed person.
- Licensed Personal Assistants/Team Members: A PA/TM with an active license can engage in the practice of real estate brokerage. It is the policy of the Company that unless written permission to the contrary is given by the Company, the license of the PA/TM must be held by the Company and any payments due a PA/TM for engaging in real estate brokerage must come from the Company. Please review the section of “Functions of Unlicensed Office Personnel” to determine the difference between “clerical” functions and “real estate” functions. The easiest and cleanest way to accomplish this end is for the agent to split commissions as they are earned with the licensed PA/TM in whatever proportion the two parties negotiate. The amount of the split between the PA/TM and the agent should be specific and regular and should not vary per transaction. The company requires written agreements between the Company and both agents to delineate the relationship and also requires the PA/TM and agent to enter into a written agreement defining the relationship and specifying the compensation arrangement.
8.2 Licensed Assistants and Unlicensed Office Personnel #
The general policy is that unlicensed office personnel (secretaries, assistants, personal assistants, receptionists, accounting personnel, etc.) are to be used in a support role to the main real estate business function of the Company. UNDER NO CIRCUMSTANCES will you authorize or allow unlicensed office personnel to engage in acts for which a real estate broker or salesperson’s license is required.
You must immediately disclose to the Company if your personal assistant has a real estate license. The personal assistant may not engage in any activity which requires a real estate license without: (1) the prior written consent of the Company; (2) entering into a written Broker/Associate-Licensee/Assistant agreement or Independent Contractor Agreement detailing the personal assistant’s relationship with the Company; and (3) submission of the personal assistant’s real estate license to the Company.
Licensed personal assistants are not subject to, nor paid in accordance with, the Company’s Compensation schedule. Licensed personal assistants are compensated solely through your contractual arrangement with them. The Company shall never be obligated to pay your licensed personal assistant except as may be paid to such assistant out of funds in escrow, or from escrow funds actually received by the Company, and for which you have given specific instructions to the Company to pay such assistant.
A broker’s unlicensed, salaried employee MAY:
- Receive and forward phone calls to his or her employing broker or another licensee in the firm.
- Submit listings and changes to a multiple listing service, but only if the listings or changes are based upon data compiled and provided by a licensed broker or salesman.
- Assist a broker or salesman in assembling documents for closing.
- Secure copies of public records from the register of deeds, clerk of court, or tax office.
- Have keys made for the firm’s listings.
- Record and deposit earnest money, security deposits, and other trust monies under the close supervision of the office broker-in-charge.
- Type offers, contracts, and leases from drafts prepared by a broker or salesman with the firm.
- Check license renewal and personnel files for the brokers and salesmen with the firm.
- Compute commission checks and act as bookkeeper for the firm’s operating bank accounts.
- Place “for sale” or “for rent” signs on property at the direction of a broker or salesman with the firm.
- Order and supervise routine and minor repairs of property at the direction of a broker or salesman with the firm.
- Act as a courier to deliver or pick up documents, keys, etc.
- Make routine phone calls to coordinate or confirm appointments between brokers, salesmen, and other persons.
- Schedule appointments for showing property for sale or lease.
- Show rental properties managed by the broker to prospective tenants.
- Complete and execute preprinted form leases for rental property managed by the broker.
An unlicensed employee MAY NOT:
- Show properties for sale to prospective purchasers.
- Solicit listings from prospective clients.
- Answer questions concerning properties listed with the firm, except to confirm that the property is listed, to identify the listing broker or salesman, and to provide such information as would normally appear in a simple, classified newspaper advertisement (e.g., location, price, number of rooms).
- Prepare promotional material or advertising of properties for sale or lease without the office broker-in-charge review and approval.
- Discuss or explain listings, management agreements, offers, contracts, or other similar matters with persons outside the firm.
- Negotiate the amount of rent, security deposit, or other lease provisions in connection with rental properties managed by the firm.
8.3 Payment/Tax Reporting #
You are responsible for determining whether your relationship with the personal assistant is that of employee/employer or independent contractor, and for properly withholding and reporting taxes. The Company strongly recommends that these matters shall be discussed with an attorney and/or accountant before any decisions are made.
8.4 Salesperson – Personal Assistant Contract #
You are required to have a written agreement with your personal assistant that expresses the nature of the relationship and each party’s duties and responsibilities. The Company shall be given a copy of the agreement for its approval and records prior to its effective date.
8.5 Supervisions #
You are responsible for supervising all activities of your personal assistant, whether or not such activity requires a real estate license. When requested by your Manager, you shall report on the performance of the personal assistant.
8.6 Indemnity #
Except as may be covered by the Company’s Errors & Omissions policy of insurance, you agree to indemnify, defend, and hold the Company harmless from all claims, demands, liabilities, judgments, arbitration awards, and attorney fees for which the Company is subjected to by reason of any action taken or omitted by your personal assistant.
8.7 Workers Compensation #
No Workers Compensation insurance is provided by the Company for unlicensed assistants hired by agents. Agents who hire unlicensed assistants shall be responsible for providing Workers Compensation insurance for those assistants where required. Agents should discuss this situation with a Workers Compensation insurance representative and/or check the State.