Under typical state law, who is responsible for the activities of unlicensed assistants in a brokerage?

UNLICENSED ASSISTANTS (administrative support, transaction coordinators, marketing personnel) can be valuable in real estate brokerages but are STRICTLY LIMITED in what they can do. The broker is responsible for their supervision and for ensuring they do NOT engage in licensed activities. WHAT UNLICENSED ASSISTANTS TYPICALLY CAN DO: (1) Schedule appointments; (2) Place open house signs; (3) Distribute pre-approved marketing materials; (4) Maintain MLS listings (data entry only with broker review); (5) Handle paperwork in administrative role (not negotiating, not advising); (6) Take messages; (7) Accept deposit checks (in some states, with limitations); (8) Prepare documents from approved templates (not customize them); (9) Send pre-approved correspondence. WHAT THEY CANNOT DO: (1) Show properties to buyers or sellers (substantive showings); (2) Discuss property features, condition, or pricing with parties; (3) Provide opinions on value, condition, or contract terms; (4) Make recommendations on properties; (5) Help write offers; (6) Negotiate terms; (7) Hold open houses (unless the broker is present; some states have specific rules); (8) Receive commission for any licensed activity. SOME GREY AREAS: (1) Phone inquiries — they can answer factual questions but must refer substantive questions to a licensed agent; (2) Showing — generally requires a license; some states have very narrow exceptions; (3) Open houses — typically must be hosted by a licensee. STATE DEFINITIONS VARY: Some states have detailed rules; others address by case law and commission opinions. SAMPLE STATE GUIDANCE: California, Florida, Texas, North Carolina have written guidance on unlicensed assistant activities. ENFORCEMENT: When an unlicensed assistant performs licensed activity: (1) The broker is liable for failure to supervise; (2) The unlicensed person may be liable for unauthorized practice (illegal in most states); (3) The licensee whose name was used (if any) is also liable. COMPENSATION: An unlicensed assistant can be paid SALARY or HOURLY wages but NOT commission, percentage of fee, or anything tied to specific transactions (this would constitute unlicensed practice). They can receive bonuses or other compensation that is not tied to specific transactions. PROTECTION FOR BROKER: (1) Have written job description for unlicensed assistants; (2) Train them on what they can and cannot do; (3) Monitor their interactions with clients; (4) Document their activities; (5) Periodically review with E&O insurance. ENFORCEMENT FOCUS: State commissions investigate when there are complaints about unlicensed activity. Common complaints: (1) An assistant negotiated a deal; (2) An assistant gave advice on properties; (3) An assistant prepared an offer customized for a client. THE TEST: The activity is licensed if it requires substantive knowledge of real estate principles or involves negotiating or advising clients on specific transactions.