Real Estate · General

Under most state license laws, can an unlicensed assistant perform activities that require a real estate license, such as negotiating contract terms or showing property and discussing its features to make a sale?

Correct answer

No — unlicensed assistants may perform only ministerial/administrative tasks (clerical work, scheduling, basic factual information); activities requiring a license (negotiating, soliciting, advising on terms, performing the core brokerage services) must be done by a licensee

  1. A Yes, anything the broker allows
  2. B No — unlicensed assistants may perform only ministerial/administrative tasks (clerical work, scheduling, basic factual information); activities requiring a license (negotiating, soliciting, advising on terms, performing the core brokerage services) must be done by a licensee
  3. C Yes, if supervised remotely
  4. D Only on weekends

Why this is the answer

UNLICENSED ASSISTANTS — PERMITTED vs PROHIBITED ACTIVITIES: PERMITTED (ministerial/administrative tasks): Clerical work; answering phones and forwarding calls; scheduling appointments; preparing/distributing marketing materials (under supervision); placing signs; providing basic FACTUAL information (price, square footage from the listing); administrative support; PROHIBITED (require a license): Negotiating price or contract terms; soliciting or procuring clients/listings; showing property and discussing its features/merits to advance a sale (giving a 'sales presentation'); providing opinions, advice, or counsel on value or terms; independently answering questions that require professional judgment; performing the substantive brokerage services; KEY DISTINCTION: Unlicensed persons can do administrative/clerical support but cannot perform the activities that legally require a license (the core sales and negotiation functions); STATE-SPECIFIC: Exact permitted activities vary by state; COMPENSATION: Unlicensed persons cannot be paid commission (only the licensed broker can be paid for licensed activities); knowing what unlicensed assistants can and cannot do is important state license law tested on the exam — the line is between ministerial tasks (allowed) and activities requiring a license (prohibited).
Source: Real Estate State — License Law, Unlicensed Assistants