If you employ a person to assist you in your real estate business, you should be aware of certain restrictions imposed by the Real Estate License Law and the Commission's rules, especially if your assistant does not have a real estate license.

An unlicensed assistant, of course, may not perform any function which requires a real estate license, nor may he hold himself out as if he is licensed. An unlicensed assistant may be compensated by salary or hourly wages, but should not be paid on a per-transaction basis, such as through commissions or bonuses.

A licensed assistant may perform any function requiring a real estate license. However, when the assistant is licensed as a salesman, he or she is subject to the same restrictions that apply to all salesmen. Among other things, this means that all real estate activities of the salesman must be supervised by the broker-in-charge of the office where the salesman works, even if the salesman-assistant is employed by another broker or salesman in the office. If the salesman-assistant has been hired to assist another salesman, both salesmen must by supervised by the broker-in-charge.

Restrictions on compensation also vary, depending upon how the assistant is licensed. For example, if the assistant is a salesman and is paid on a per-transaction basis, the payment must be made through the broker-in-charge of the office, even if the salesman has been hired to assist another broker or salesman in the office. But, an assistant who holds a broker license may be compensated on a per-transaction basis and act without the direct supervision of the broker-in-charge, subject to the reasonable policies of the firm.

Additional considerations arise when a real estate broker working for a brokerage firm opens a separate office in the broker's own name and hires an assistant to work there. Very often the broker and the assistant are in reality working for the brokerage firm and not on their own. This arrangement violates the Commission's rules unless the broker's separate office: (1) is designated as a "branch office" of the brokerage firm; (2) has its own broker-in-charge; and (3) is the office from which the broker and assistant work.

The Commission rules require that every licensee work from the office where his license is displayed. They also require that every office have a broker-in-charge and that the broker-in-charge supervise the activities of the office, particularly the activities of salesmen associated with it. Thus, a salesman may not operate an office independent from the firm where he or she is associated.

You must carefully consider the provisions of the Real Estate License Law and Commission rules prior to hiring a licensed or unlicensed assistant. The Commission's legal staff and Consumer Protection Officers are available to answer your questions concerning this and any other matters that relate to the License Law and rules.