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Architecture Guide
Cost vs. Value Report
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Take a Quiz
30 under 30
Young Professionals
REALTOR® Emeritus |
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Risk management Controlling Personnel Risks |
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 Three Lines of Defense Against Risk Keeping Risks Under Control Controlling Transaction Risks Agency Disclosure Avoiding Antitrust Risks Minimizing Liability from Contracts Fair Housing Risks Controlling Personnel Risks Communications Policies to Minimize Risks Insuring Against Risks More Resources: Controlling Business Risks Code of Ethics: Controlling Business Risks |
Liability for Personal Assistants Hiring personal assistants—either licensed or unlicensed—is becoming more widespread in the real estate industry. According to the 2003 NATIONAL ASSOCIATION OF REALTORS® Member Profile, 21 percent of members report that they have at least one personal assistant to help them in their real estate business. When a broker hires an assistant or lets a salesperson who is an employee of the company hire an assistant, the broker has ultimate responsibility for the assistant's actions. But when a broker allows salespeople who are independent contractors to hire their own assistants—either as employees or independent contractors—the salespeople are mainly liable for their assistants' actions. However, the broker could still have some liability because the salesperson who hired the assistant is licensed with the broker and the assistant ultimately is conducting business on behalf of the real estate brokerage. To determine your liability for the actions of assistants:
TIP: The degree of control that can be exercised will depend on whether the assistant is an employee or an independent contractor.
Licensed or Unlicensed? In deciding whether to hire a licensed or an unlicensed assistant, think about what that person's duties will be. Licensed assistants can do anything permitted under the state's licensing statute, but unlicensed assistant can't engage in any activity that requires a license. To determine what these activities are, look at the definitions of a broker and a salesperson in your state’s statutes. If an activity is contained within either of these definitions, you need a license to do it. TIP: Many state real estate commissions have developed specific guidelines of the activities that unlicensed assistants can perform. TIP: For further guidance on hiring and supervising both licensed and unlicensed personal assistants, visit the Personal Assistant Q&A. Communications Policies to Minimize Risk > |
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