Evelina Tsigelnitskaya, www.SIBRealty.org 305-931-6931 (SIB Realty)

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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I have worked in a brokerage like that. The owner, nor the broker of record were competing. However, the owner's children were licensed and did receive all of the owner's referrals. That created a bit of animosity between the agents and his/her children.

I also owned my own brokerage and hired brokers of record in two offices. I was, however, a competing broker/owner. All company leads were dispersed by the broker of record, not the owners. That alleviated any issues with the fact that the owners were competing.

Jul 11, 2018 11:42 AM
Rainmaker
1,440,088
Sandy Padula and Norm Padula, JD, GRI
Realty National - Carlsbad, CA
Presence, Persistence & Perseverance

Per Florida Real Estate Law

Section 475.15
Registration and licensing of general partners, members, officers, and directors of a firm.—
Each partnership, limited liability partnership, limited liability company, or corporation whichacts as a broker shall register with the commission and shall renew the licenses or registrations of its members, officers, and directors for each license period. However, if the partnership is a limited
partnership, only the general partners must be licensed brokers or brokerage corporations registered pursuant to this part. If the license or registration of at least one active broker member is not in force, the registration of a corporation, limited liability company, limited liability partnership, or partnership is canceled automatically during that period of time.
Jul 11, 2018 11:28 AM
Ambassador
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Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

What Sandy Padula and Norm Padula, JD, GRI said about Florida Statute 475.15.

     A real estate "agent" cannot open a real estate brokerage in our state by herself or himself.  There must be at least one active Broker of record to serve as a member, officer or director of the corporation, partnership, LLC, LLP, or other business entity.  See my additional remarks below.

 

Jul 11, 2018 11:58 AM
Rainmaker
723,961
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

I think its inappropriate.

Who is the Boss now?

Broker or Owner/Agent?!

Jul 11, 2018 11:26 AM
Rainmaker
409,876
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

It's actually an awesome solution for a high producing agent that wants to go out on their own without the day to day broker responsibilities. Hire a pro and keep doing what they're good at. 

Jul 11, 2018 01:53 PM
Rainmaker
1,091,910
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Nothing wrong with that.  One of my good friends has been doing that since the 80s.

Jul 11, 2018 01:50 PM
Rainmaker
498,002
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

It seems like that is the most often used practice.

Jul 11, 2018 12:08 PM
Rainmaker
2,613,798
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

It is not something I would do.  I would, and did, get my broker license. 

Jul 11, 2018 11:52 AM
Rainmaker
303,647
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Happens in our market.  Works if there is a clearly defined job description. Typically the managing Broker will not sell, but the owner/agent is a competing agent. In two local cases, I see one working well, and in another case, the managing Broker keeps getting fired over and over again.

Jul 11, 2018 11:51 AM
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Too little information. 

Jul 11, 2018 11:49 AM
Rainmaker
2,514,587
Richard Weeks
Dallas, TX
REALTOR®, Broker

I don't think it is a good idea.  I know some brokers that will be the broker of record for as many owners who wish to pay them.  The agents are not properly supervised.

Jul 11, 2018 11:34 AM
Rainmaker
666,604
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Happens all the time. 

Jul 11, 2018 05:14 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Running a business and doing the brokerage work are two different activities and we have plenty of great people doing both in our company.

How it is structured is between them and the state, I just concentrate on leading my teams and let them provide a great environment for us to thrive in.

Jul 11, 2018 04:57 PM
Rainmaker
1,164,633
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Check state law.  It's legal in PA.

Jul 11, 2018 02:22 PM
Rainmaker
586,927
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

You mean, the office is owned by a licensee but a managing broker is designated. Happens.
I've also seen a broker SELL their business to one of their agents who then gets licensed as DB and the former owner remains on as an agent under them.
There are many reasons to do this - they want to be free to travel or semi-retire, they want to free up cash for another project, etc, etc.
Being the DB requires that you assume liability and you're where the buck stops. The company is not without liability, though. A lot depends on structure.

I know successful agents, team leaders doing essentially the same duties, who could, are smarter than, but would NEVER want to be 'the broker'.
It ain't for everyone.

Jul 11, 2018 01:45 PM
Rainer
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J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

We had an office here where a licensee opened the company and hired a Principal Broker. The office had two PB’s prior to the licensee obtaining a broker license. The haves keep having more. 

Jul 11, 2018 01:29 PM
Rainmaker
1,364,268
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

It happens here in CA. Depends on the relationships, if everyone works as a team and clearly understands their roles, no issues should be. 

Jul 11, 2018 01:07 PM
Rainmaker
412,968
Peter Mohylsky
BETTER HOMES AND GARDENS REAL ESTATE - Santa Rosa Beach, FL
Your Bucket List Broker Along Scenic 30A

Not a good situation,  as stated many times before me.  

Jul 11, 2018 12:59 PM
Rainmaker
2,294,314
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

many ways to skin the Real Estate cat...this be one of them

Jul 11, 2018 12:51 PM
Rainmaker
4,700,567
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Follow the rules in your state.

Jul 11, 2018 12:25 PM
Rainmaker
2,485,599
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Agents cannot own firms... they have to be brokers and also complete the broker-in-charge licensing.

Jul 11, 2018 12:21 PM
Rainmaker
623,175
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

 Sounds ok with me. If you follow what's going on with the courts, supervising brokers will eventually be a thing of the past.

Jul 12, 2018 06:09 AM
Rainer
2,470
Michael Partridge
Rabell Realty Group, LLC - Gainesville, FL
REO Director

I think you better have a really good relationship like Father Daughter

 

Jul 12, 2018 06:09 AM
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I like Debe Maxwell, CRS answer

Jul 11, 2018 10:50 PM
Rainmaker
510,359
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

It allows the owner to work on strategy and growth while the broker deals with personnel and compliance issues.

Jul 11, 2018 10:19 PM
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

That is done in my area. Owning a company can be a source of income and brokering could be a distraction for a really busy agent and cut into sales time.

Jul 11, 2018 06:23 PM
Rainmaker
4,367,363
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

in MA, agents cannot open an office.....they need to hang their shingle with a broker....

Jul 11, 2018 04:30 PM
Rainmaker
2,415,780
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Evelina Tsigelnitskaya once I associate with an office the broker was not the owner.

Jul 11, 2018 04:27 PM
Rainmaker
2,726,996
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

The agent, money man, should get a broker’s license. Renting someone else’s is becoming more common for certain brokerages. Soon lessons will be learned.

Jul 11, 2018 04:00 PM
Rainmaker
667,327
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I think a real estate agent can own as much stock in a brokerage as they wish.

You really don't want to create a tail wagging the dog situation.

But ALL the biggies started somewhere.

Jul 11, 2018 01:26 PM
Rainmaker
1,128,556
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Thank you to all for all your answers. 

I don't believe in that type of "brokerage". 

If the agent hires avprincipal broker, sooner or later, it won't work. I have been witnessed five of them and none of them worked out. 

Only 1 solution - if you are a real estate agent and want to open real estate company - GET A BROKER'S LICENSE. You already archive so much, just one more step - get a broker's license! Invest in yourself and be a boss!

Jul 15, 2018 03:26 PM
Rainmaker
3,612,857
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We see this around here too.

Jul 15, 2018 06:38 AM
Rainmaker
2,981,209
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

No issue

Jul 14, 2018 05:39 AM
Rainmaker
2,659,737
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, Interesting,  I would wonder which one is the boss or the real broker!

Jul 12, 2018 11:10 AM
Rainmaker
4,360,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't have a problem with this as long as everything is done legally.

Jul 12, 2018 06:46 AM
Rainer
1,210
JOe Jacsom
TopCasinoHub - Fountain Hills, AZ
The experts at Gambling Insider explain the top 10

Cool!

Jul 12, 2018 06:25 AM
Rainmaker
4,091,123
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have seen it in my area. The real estate agent is an investor and opened his office abd hired a broker of record with a broker's license.

Jul 12, 2018 05:02 AM
Ambassador
4,132,035
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Not healthy for sure, Evelina Tsigelnitskaya

Jul 11, 2018 11:28 PM
Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

It's not something I would do but seems to me you could, based on the responses. Not that familiar with the CA laws. Interesting question...

Jul 11, 2018 05:31 PM
Rainmaker
549,018
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The following quote is from the most recent issue of the monthly newsletter from the State of California Department of Real Estate:"...

"...we continue to see brokers who abuse their license privilege by acting as “ghost” or “shadow” brokers (also referred to by us as “rent-a-brokers” or “brokers for lease”). Those brokers provide very little or no supervision, or simply (and unlawfully) “rent” or “lease” the use of their broker license to salespersons who in turn operate a real estate practice without any broker supervision as if they were real estate brokers. Such “ghost” brokers put themselves, their salespersons, and the public, at great risk."

Jul 11, 2018 03:31 PM
Rainmaker
3,819,898
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Evelina,

You have great answers here, and there is nothing more I can add to this.  Wishing you great success in Sunny Isles, Florida. A

Jul 11, 2018 02:20 PM
Rainer
83,749
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

Number 1 question--WHY? At KW we have mega teams which are basically offices unto themselves but working under a broker. Question 2--an agent can't OPEN their own company WITHOUT a broker! There are all sorts of different models out there. At KW we have mega and expansion teams which work in many cities across the nation. I think the industry is getting away from the BIG company umbrellas and going lighter in their market share but aggressive in their technology. 

Jul 12, 2018 08:34 PM