10.27 Misrepresenting Relationships with Individual Broker

Company policy is that Associates may not represent to a seller, a buyer, or to the public that he/she is associated with another broker when that association does not exist. While seemingly obvious, many licensees are caught in misrepresentations with respect to their broker or brokerage affiliation. Some examples include:

• A licensee currently licensed with Broker A is at a listing appointment. The licensee is planning to move his/her license to Broker B. During the listing presentation, the licensee makes the presentation and leads the seller to believe that the licensee has already transferred the license to Broker B. This is a misrepresentation.

• A licensee is affiliated with a broker who is a member of a national franchise. Many sellers and buyers associate "bigness" with performance and security. Because of the implied power of the national franchise, the licensee leads a seller or buyer to believe that they are protected by the franchisor organization. This representation is untrue and therefore unethical and a violation of law.

A licensee may not represent to a seller, buyer, or the public that he/she is associated with a broker when that association does not exist.