What Can an Unlicensed ‘Assistant’ Do in a Brokerage?
reprinted courtesy HIREC Bulletin February 2006
One of the most frequently asked questions received at the Real Estate Branch is “What can an unlicensed ‘assistant’ do in a brokerage?”
There is no ready-made list of do’s and don’ts for unlicensed assistants working in a brokerage. The Commission has no rule or formal or informal decision on this issue.
When making a determination as to the duties and responsibilities of unlicensed staff so as to remain in compliance with the real estate licensing laws (Hawaii Revised Statutes (HRS), Chapter 467, and Hawaii Administrative Rules (HAR), Chapter 99) keep in mind the following:
1. The definition of “real estate salesperson” means “ . . . any individual who, for a compensation or valuable consideration, is employed either directly or indirectly by a real estate broker, or sheets approved by the principal broker regarding specific properties, and they may not sign any real estate transaction documents.
4.
Note that included in the definition of both “real estate salesperson” and “real estate broker” is “ . . . manages or offers to manage, any real estate, or the improvements thereon, for others, as a whole or partial vocation; . . .” If you are managing properties for more than a single owner, you need a real estate license to do so.
5.
There are some exceptions to real estate licensing as stated in Section 467-2, HRS. These exceptions apply to individuals, not to entities such as corporations, partnerships,
is an independent contractor in association with a real estate broker, to sell or offer to sell, buy or offer to buy, or list, or solicit for prospective purchasers, or who leases or offers to lease, or rents or offers to rent, or manages or offers to
There is no list of do’s and don’ts. But here are some things to keep in mind
manage, any real estate or the improvements thereon, for others as a whole or partial vocation; or who secures, receives, takes, or accepts, and sells or offers to sell, any option on real estate without the exercise by the individual of the option and for the purpose or as a means of evading the licensing requirements of this chapter. Every real estate salesperson shall be under the direction of a real estate broker for all real estate transactions.” (See Section 467-1, HRS)
2.
The definition of “real estate broker” means “ . . . any person who, for compensation or a valuable consideration, sells or offers to sell, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, or lists, or solicits for prospective purchasers, or who leases or offers to lease, or rents or offers to rent, or manages or offers to manage, any real estate, or the improvements thereon, for others, as a whole or partial vocation; or who secures, receives, takes, or accepts, and sells or offers to sell, any option on real estate without the exercise by the person of the option and for the purpose or as a means of evading the licensing requirement of this chapter.” (See Section 467-1, HRS)
3.
Unlicensed brokerage staff may perform duties that do not fall under the above definitions of real estate broker and salesperson. For example, if you have an unlicensed assistant in your brokerage they may not show properties to potential clients or tenants, they may not engage in any real estate negotiations with clients, they may not answer questions or provide information beyond what may be written in fact
limited liability companies, or limited liability partnerships. Perhaps the most common exception is Section 467-2(3), HRS, which states an individual does not require a real estate license if this individual “ . . . leases, offers to lease, rents, or offers to rent, any real estate or the improvements thereon of which the individual is the custodian or caretaker; . . . “ A “caretaker” is defined in Section 467-1, HRS, “. . . any individual, who for compensation or valuable consideration, is employed as an employee by a single owner and has the responsibility to manage or care for that real property left in the individual’s trust, provided that the term “custodian” or “caretaker” shall not include any individual who leases or offers to lease, or rents or offers to rent, any real estate for more than a single owner; provided further that a single owner shall not include an association of owners of a condominium, cooperative, or planned unit development.
6. In Hawaii, there are no “specialty” real estate licenses. If you hold a current and active Hawaii real estate salesperson’s or broker’s license, you may sell commercial real estate, lease residential or commercial real estate, sell residential real estate, sell time share interests, and property manage real estate for more than a single owner.
If you are a broker, you may also be a condominium hotel operator.
reprinted courtesy HIREC Bulletin February 2006
brought to you by Wailea Makena Real Estate Inc.
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Peter Gelsey R (PB)
Wailea Makena Real Estate, Inc.
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