Table of Contents
Introduction
In August 2016, the signing of SB 710 introduced significant changes to the Real Estate Law concerning team names. That's why we want to provide clear and up-to-date answers to the most frequently asked questions on the subject. Check out these DRE FAQs.
What is a “Team Name”?
A “team name” is a statutory terminology described in Section 10159.7 of the Business and Professions Code. Essentially, it represents:
- A professional identity or brand name.
- Used by a seller and one or more real estate licensees.
- Implemented for the provision of real estate services.
Essential Components of a Team Name
- Surname inclusion: It is essential that it contains the last name of at least one of the team members, in conjunction with words such as:
- «group»
- «team»
- «associates»
- Allowed words: Terms like “realty” or “real estate” are allowed, as long as the other conditions are met, such as the example: «Smith Real Estate Team».
- Prohibitions: It is essential to avoid words that could lead the public to believe that the team is an independent entity from the responsible rider. These include:
- «broker»
- «real estate brokerage»
- «real estate broker»
Advertising and Team Names
- Not a fictitious name: Under the Real Estate Act, a “team name” is not considered a fictitious business name, meaning that no additional paperwork needs to be filed with the DER to use it.
- Advertising requirements: Advertising materials must:
- Show the «team name».
- Include the last name and license number of at least one of the licensed members.
- In certain circumstances, highlight the identity of the responsible broker, either through name, license number, or both.
Identity of the Responsible Broker
The “identity of the responsible broker” is a concept defined in Section 10015.4 of the Business and Professions Code. This identity:
- It represents the name under which the broker is licensed.
- It may include the name and/or associated license number.
