February 23rd, 2012 at 6:50 pm
names. Specifically, the DRE has stated that an agent cannot use a team name that implies it is a separate entity or brokerage. For example, team names that like “John Doe Real Estate” or “The John Doe Group” are not permitted. Rather, you can use the last names of the team leaders or members, all the while identifying that the agents are with Prudential California Realty (“Smith and Smith,” etc.) In the past, enforcement of these rules has been sporadic, but we have been informed that this is about to change. Specifically, we are told that the DRE is forming a task force to enforce its team name rules. That task force will be driving neighborhoods and looking for signs that violate the rules. Each violation is subject to a $1,000 fine, meaning $1,000 for each sign or marketing piece. As a result, and as you can see, these violations can be very expensive. Further, if you are cited by the DRE, all existing marketing which uses the offending language will need to be discarded. This means signs, flyers, etc. Finally, all the branding you have done for that team name will have gone to waste, since you will not be able to use the name any longer. So please be aware of this new state of affairs, and consider very carefully how you want to respond. Perhaps an affirmative move to change your team name and make it compliant would be the smart thing to do at this point.
As always, please feel free to contact us with any questions you may have.
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