A broker uses the term 'team' in advertising (e.g., 'The Smith Team at XYZ Realty'). What is typically required?

TEAMS within a brokerage are common, especially as agents specialize. State laws and Realtor Association policies have caught up to regulate them. KEY REQUIREMENTS: (1) BROKERAGE MUST BE IDENTIFIED: The supervising brokerage's legal name must appear in any team advertising, with at least equal prominence to the team name in most states. The team name cannot stand alone or be more prominent. (2) TEAM NAMES TYPICALLY CANNOT IMPLY they are a separate brokerage. Names like 'Smith Realty Group' or 'Smith Properties' could be confusing — many states prohibit names that suggest the team is its own brokerage rather than part of a firm. Acceptable: 'The Smith Team of XYZ Realty.' Unacceptable in many states: 'Smith Realty' (sounds like a brokerage). (3) TEAM REGISTRATION: Some states require teams to be REGISTERED with the state commission, including: team name, team leader, members, supervising broker. (4) TEAM LEADER: Must typically be a licensed broker or experienced salesperson (some states require broker status). (5) TEAM MEMBERS: All members must hold their own license and operate under the supervising broker. (6) ADVERTISING DISCLOSURE: Each team member's advertising must show the brokerage. The team name appears with the brokerage. (7) SUPERVISION: The brokerage's designated/managing broker still supervises all team members; team leaders are typically allowed to mentor and coordinate but cannot replace the supervising broker's legal duties. STATES WITH SPECIFIC TEAM RULES: Texas (TREC has detailed team requirements); Illinois; Massachusetts; Virginia. PROHIBITED PRACTICES: (1) Operating a team as a 'shadow brokerage' — collecting fees outside the brokerage's awareness or compensation structure; (2) Team logos that confusingly replace the brokerage logo; (3) Failing to register teams in states that require it; (4) Team names that include words like 'Realty,' 'Properties,' 'Realtors,' 'Group' that could imply separate brokerage status (varies by state). REALTOR ASSOCIATION rules: NAR has revised team-related guidance to emphasize that teams operate UNDER a brokerage, not as separate entities. ADVERTISING REVIEW: A broker should establish a written team advertising policy and review team advertising before publication. Many brokerages provide standard templates for team advertising to ensure compliance.