The following is excerpted from: Michigan REALTORS Letter of the Law
Different states have different standards when it comes to what activities an unlicensed assistant may or may not perform. Understanding these standards is a crucial step in staffing a brokerage and remaining compliant with Michigan’s licensing requirements. In the State of Michigan historically, it has been understood that an unlicensed assistant may perform the following activities:
- Tasks that are strictly clerical (such as answering phones, directing calls, greeting customers, etc.);
- Acting as a courier in picking up or delivering documents on behalf of the licensee;
- Assisting licensees during an open house. The key word being “assist” – as unlicensed assistants cannot independently show property or host open houses. At the open house, an unlicensed assistant may:
- Greet potential homebuyers as they arrive;
- Hand out prepared printed materials;
- Have prospects sign a guest book to record names, addresses, and phone numbers;
- Escort potential buyers throughout the home for security purposes, but not to answer material questions about the home.
In keeping compliant with state licensing law, it is crucial that brokerages identify those activities that are off limits to individuals who do not have a real estate license. In the State of Michigan, it has historically been understood that an unlicensed assistant may not engage in the following activities:
- Independently hold open houses for Realtors®;
- Show properties to potential buyers;
- Solicit listings or other business via phone;
- Answer any questions relating to financing, title insurance, or closing.
- Provide any additional information to the public aside from information that has already been set forth in prepared promotional material that has already been distributed to the public;
- Have their names printed on business cards or stationary in a way that would imply that they are a real estate salesperson or broker;
- Hold themselves out as a real estate salesperson or broker;
- Perform any acts for which a license is required under Michigan Real Estate License Law
(MCL 339.2501).
Staying compliant with Michigan’s licensing law is an absolute must for a brokerage. Licensees who allow unlicensed assistants to engage in real estate-related activities on their behalf face hefty penalties for non-compliance with the Occupational Code. These penalties include:
- Placement of a limitation on the license
- Suspension of license
- Denial of license renewal
- Revocation of license
- Censure
- Probation
- Restitution
- Administrative fine up to $10,000.
Excerpted from: Michigan REALTORS Letter of the Law
http://www.carwm.com/wp-content/uploads/2018/06/UnlicensedAssistantsPrimer17.pdf