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October 3, 2019 In LLC Sponsorship, Marketing

Compliance Checkup for LLC Sponsorships

This article is written for those on our LLC Sponsorship plan.  Please review to make sure you’re in compliance with TREC rules for your brokerage.

Designated Supervisor

Every LLC must have at least one experienced agent to perform the designated supervisor role.  Typically, this is the agent that owns the LLC but can be another experienced agent that works for the LLC.  To be a designated supervisor (also referred to as delegated supervisor), an agent must take the Broker Responsibility course.  This can be taken with any TREC approved training provider (see this article for a discount we’ve negotiated with an online provider).  That agent must be indicated as the designated supervisor in the TREC online tool.  To see how to do this, see the Designated Supervisor section here: https://eliteagents.cloud/transfer-agent-with-trec/

Policies and Procedures

It’s a legal requirement that you have a Policies and Procedures manual for your brokerage.  To make things easy, we have templates available that you can use to create one.  Just be sure to modify, add your company name where indicated, etc.  Don’t simply download the templates and think you’re good to go.  See this article for more info and how to access the templates: https://eliteagents.cloud/llc-policies-and-procedures/ 

Transaction Records

As outlined in our LLC sponsorship agreement, you must keep records of every transaction for at least 4 years.  It’s up to you as to how you accomplish that but we highly recommend that you use some sort of transaction management system which will ensure you have the required documents for each transaction.  You can see some recommendations of those systems in this article: https://eliteagents.cloud/biz-apps-and-services/

Advertising Rules

STOP using the words “Owner”, “President”, “CEO”, etc. in your email signatures and real estate advertising!  It’s against TREC rules.  Although you may indeed be the company owner, you cannot use that term in your advertising as TREC considers it to be confusing the public into thinking you have a broker license.  Keep in mind that LLC sponsorship does NOT make you a broker.  Using “owner”, etc., on legal documents is appropriate but not for advertising.  It is your responsibility to be aware of and comply with all TREC rules including advertising rules.

NOTE: We’ve been told by TREC staff attorneys that you also cannot use the title of “Founder” in advertising.

Information About Brokerage Services (IABS)

This may seem inconsequential but it’s extremely important and will result in disciplinary actions if you have a TREC complaint.  Be sure you have a properly completed IABS and that you have a link to it along with the TREC Consumer Protection Notice in your email signature, website, social media, and any other place considered the “first substantial” contact with potential clients.  See this article for more info and how to complete your IABS form:  https://eliteagents.cloud/how-to-complete-the-iabs-for-llcs/  Make sure all of your agents have a properly completed IABS as well.

Please see the following to learn the proper placement of the IABS: https://eliteagents.cloud/required-use-of-the-iabs-and-consumer-protection-notice/

Business Name

Unless you’ve also registered a DBA (assumed) name, you must use the exact legal company name as shown on the LLC license including the “LLC” abbreviation.  If you want to shorten your company name or use a different one altogether, you have to verify the name you want to use is available and register it as an assumed name with the State first and then with TREC.  See this article on how to do this correctly: https://eliteagents.cloud/using-a-dba-name/

Realtor Association and MLS Access

When your LLC license is issued, we must create an office account for your LLC with your local Realtor association.  As explained before you signed up for LLC sponsorship, you will now have an office account in addition to your agent account.  There will be an initial fee along with ongoing fees for the office account (varies by association).  You are responsible for paying both the office account dues along with your agent account dues.  Additionally, all of the agents you sponsor must be members of the association as well.  There are no exceptions to this as the broker will be fined by our primary association for any agent you have that’s not a member.  If you don’t pay your dues, the only option we have is to terminate your sponsorship – we don’t want to do that but it’s our only recourse.

As agents, you must be members of the association but access to the MLS is optional.  There will be an additional fee for MLS access.  If an agent doesn’t want/need MLS access, they do not have to pay for it but they do still have to pay the annual association dues.  If you want MLS access, you’ll be paying multiple dues – the annual dues for the association and the quarterly or semi-annual dues for MLS access.  Also be aware that some associations will charge MLS dues for your office account as well so be sure to budget and allow for these expenses.

Commission and 1099s

By law, all commission is technically paid to the broker.  Regardless of how it may look at a closing, commission always flows from broker to broker and from broker down to agents.  The title company is simply handling the passing of the commission from broker to agent via the commission disbursement authorization.  This is why lease checks are always made out to the broker who in turn sends a check to their agent.  Keep in mind in your case, your LLC is the broker and you as the “designated supervisor” of the brokerage have authority to issue CDAs.  

Since your agents are independent contractors, you must keep a record of the commission being paid to them and report it to the IRS via form 1099 before the end of January each year.  You must provide each agent with a form 1099-MISC for the commission they earned for the prior year while being sponsored by your LLC.  For tax purposes, the flow of money goes like this: commission is paid to your LLC and then you pay the commission to your agent.  If you don’t report it like this, it will be assumed that the commission just went to your LLC and you’re expected to pay the tax on it.  Please discuss with your CPA and put in a system to file and send 1099s.

Advertising Assumed Names DBA Policies TREC
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Granbury, TX | 4 Bed, 3 Bath | $849,000
Overall grand prize winner in the hood county builders assoc. showcase. Living with Gas Log Fireplace. Island Kitchen features Farmhouse Sink, 6 Burner Gas Cooktop, Oven, Microwave, Walk In Pantry. Master with Ensuite Bath Features Dual Sink Vanity, Walk In Shower with Double Shower Heads, Garden Tub and Two Large Closets. Guest Bedroom or Study and 1 Additional Bath are on Ground Floor. Second Story features 2 Guest Bedrooms, 1 Bath and Large Storage Closet. Two Car Garage plus Separate Golf Cart Garage, Both with Epoxy Floors. 

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Granbury, TX | 4 Bed, 3 Bath | $849,000
Overall grand prize winner in the hood county builders assoc. showcase. Living with Gas Log Fireplace. Island Kitchen features Farmhouse Sink, 6 Burner Gas Cooktop, Oven, Microwave, Walk In Pantry. Master with Ensuite Bath Features Dual Sink Vanity, Walk In Shower with Double Shower Heads, Garden Tub and Two Large Closets. Guest Bedroom or Study and 1 Additional Bath are on Ground Floor. Second Story features 2 Guest Bedrooms, 1 Bath and Large Storage Closet. Two Car Garage plus Separate Golf Cart Garage, Both with Epoxy Floors. 

https://bit.ly/3HXWQaM
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Granbury, TX | 4 Bed, 3 Bath | $849,000
Overall grand prize winner in the hood county builders assoc. showcase. Living with Gas Log Fireplace. Island Kitchen features Farmhouse Sink, 6 Burner Gas Cooktop, Oven, Microwave, Walk In Pantry. Master with Ensuite Bath Features Dual Sink Vanity, Walk In Shower with Double Shower Heads, Garden Tub and Two Large Closets. Guest Bedroom or Study and 1 Additional Bath are on Ground Floor. Second Story features 2 Guest Bedrooms, 1 Bath and Large Storage Closet. Two Car Garage plus Separate Golf Cart Garage, Both with Epoxy Floors. 

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Granbury, TX | 4 Bed, 3 Bath | $849,000 Overall grand prize winner in the hood county builders assoc. showcase. Living with Gas Log Fireplace. Island Kitchen features Farmhouse Sink, 6 Burner Gas Cooktop, Oven, Microwave, Walk In Pantry. Master with Ensuite Bath Features Dual Sink Vanity, Walk In Shower with Double Shower Heads, Garden Tub and Two Large Closets. Guest Bedroom or Study and 1 Additional Bath are on Ground Floor. Second Story features 2 Guest Bedrooms, 1 Bath and Large Storage Closet. Two Car Garage plus Separate Golf Cart Garage, Both with Epoxy Floors. https://bit.ly/3HXWQaM #realestateforsale #realestate #EliteAgents
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Exquisite luxury await you with this new construction home built by Bella Vue Homes! This home is in the community of Tuscan Village in Glen Rose! Tuscan Village is a community with a Southwestern flair! Stucco homes, Spanish tile roofs, stone fencing, drought tolerant landscaping, and wonderful panoramic views await you. You will also have access to a walking path, clubhouse, and so much more! The exterior of this home is signature Bella Vue homes. Full stucco exterior, Spanish tile roof, drought resistant landscaping, stucco stone fence, drip system sprinkler in front, full sprinkler system with a full sod back yard. Now walk inside this home and be astounded! Downstairs features full size office with french doors, large open living room with fireplace, open kitchen with granite and top of the line appliances. Large butler style pantry, mud area, large utility, large master, and stunning master bath with a super size closet! Upstairs features a large gameroom and split bedrooms.

https://bit.ly/3HCKCnw
#realestateforsale #realestate #EliteAgents
Glen Rose, TX | 3 Bed, 2.5 Bath | $479,900
Exquisite luxury await you with this new construction home built by Bella Vue Homes! This home is in the community of Tuscan Village in Glen Rose! Tuscan Village is a community with a Southwestern flair! Stucco homes, Spanish tile roofs, stone fencing, drought tolerant landscaping, and wonderful panoramic views await you. You will also have access to a walking path, clubhouse, and so much more! The exterior of this home is signature Bella Vue homes. Full stucco exterior, Spanish tile roof, drought resistant landscaping, stucco stone fence, drip system sprinkler in front, full sprinkler system with a full sod back yard. Now walk inside this home and be astounded! Downstairs features full size office with french doors, large open living room with fireplace, open kitchen with granite and top of the line appliances. Large butler style pantry, mud area, large utility, large master, and stunning master bath with a super size closet! Upstairs features a large gameroom and split bedrooms.

https://bit.ly/3HCKCnw
#realestateforsale #realestate #EliteAgents
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Glen Rose, TX | 3 Bed, 2.5 Bath | $479,900 Exquisite luxury await you with this new construction home built by Bella Vue Homes! This home is in the community of Tuscan Village in Glen Rose! Tuscan Village is a community with a Southwestern flair! Stucco homes, Spanish tile roofs, stone fencing, drought tolerant landscaping, and wonderful panoramic views await you. You will also have access to a walking path, clubhouse, and so much more! The exterior of this home is signature Bella Vue homes. Full stucco exterior, Spanish tile roof, drought resistant landscaping, stucco stone fence, drip system sprinkler in front, full sprinkler system with a full sod back yard. Now walk inside this home and be astounded! Downstairs features full size office with french doors, large open living room with fireplace, open kitchen with granite and top of the line appliances. Large butler style pantry, mud area, large utility, large master, and stunning master bath with a super size closet! Upstairs features a large gameroom and split bedrooms. https://bit.ly/3HCKCnw #realestateforsale #realestate #EliteAgents
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https://bit.ly/3Okzm1p
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Granbury, TX | 4 Bed, 5 Bath | $869,900 Spectacular 1 owner home on 3.6 beautiful acres on the Brazos River in the gated and golfing community of Pecan Plantation. This is a fabulous custom built home built in 1990 and featuring 4425 well laid out square footage. This home is a true gem and homes like this do not come available very often! Overall this home features 4 full size bedrooms, 5 full baths, living room, den, upstairs game room with a full bath, a true chef's kitchen with large island, granite countertops, built in refrigerator, double convection oven, cooktop, built in microwave, and more! Enormous 22X10 Butlers Pantry with built in shelving all around and a separate sink. 26X15 Sunroom with panoramic views of the acreage down to the river. Master bedroom features 2 master bathrooms! His and hers! Formal dining just off kitchen for the holidays. 4th bedroom can be guest suite with separate kitchen, den, and bath. 3 car super size garage, circle drive, spectacular views, and the largest covered back patio around! https://bit.ly/3Okzm1p #realestateforsale #realestate #EliteAgents
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Granbury, TX | 4 Bed, 2 Bath | $336,700
Cute, Cozy, and super clean 4 bedroom home located on the FW side of Granbury in Meander Estates! This home has only had 2 owners and is located outside the City limits of Granbury but you still get City water and City sewer! Neighborhood has a very low cost HOA as well! Exterior of this home features nice landscaping, full sod front and back yard, gutters, sprinkler system, wood privacy fence, and a 2 car garage with opener. Interior of home features very nice wood laminate flooring in living and hallway, tile in kitchen, utility and both bathrooms, and carpet in the bedrooms. Split bedrooms all having large with walk in closets. Master bath features double sinks, garden tub, and a separate shower. Don't miss the large utility room with a separate sink! This home is located on a very private and low traffic cul de sac. Come tour this wonderful 4 bedroom, 2 bath home in the highly desired neighborhood of Meander Estates located on the FW side of Granbury with easy access to shopping!

https://bit.ly/3O0QGsA
#realestateforsale #realestate #EliteAgents
Granbury, TX | 4 Bed, 2 Bath | $336,700
Cute, Cozy, and super clean 4 bedroom home located on the FW side of Granbury in Meander Estates! This home has only had 2 owners and is located outside the City limits of Granbury but you still get City water and City sewer! Neighborhood has a very low cost HOA as well! Exterior of this home features nice landscaping, full sod front and back yard, gutters, sprinkler system, wood privacy fence, and a 2 car garage with opener. Interior of home features very nice wood laminate flooring in living and hallway, tile in kitchen, utility and both bathrooms, and carpet in the bedrooms. Split bedrooms all having large with walk in closets. Master bath features double sinks, garden tub, and a separate shower. Don't miss the large utility room with a separate sink! This home is located on a very private and low traffic cul de sac. Come tour this wonderful 4 bedroom, 2 bath home in the highly desired neighborhood of Meander Estates located on the FW side of Granbury with easy access to shopping!

https://bit.ly/3O0QGsA
#realestateforsale #realestate #EliteAgents
Granbury, TX | 4 Bed, 2 Bath | $336,700
Cute, Cozy, and super clean 4 bedroom home located on the FW side of Granbury in Meander Estates! This home has only had 2 owners and is located outside the City limits of Granbury but you still get City water and City sewer! Neighborhood has a very low cost HOA as well! Exterior of this home features nice landscaping, full sod front and back yard, gutters, sprinkler system, wood privacy fence, and a 2 car garage with opener. Interior of home features very nice wood laminate flooring in living and hallway, tile in kitchen, utility and both bathrooms, and carpet in the bedrooms. Split bedrooms all having large with walk in closets. Master bath features double sinks, garden tub, and a separate shower. Don't miss the large utility room with a separate sink! This home is located on a very private and low traffic cul de sac. Come tour this wonderful 4 bedroom, 2 bath home in the highly desired neighborhood of Meander Estates located on the FW side of Granbury with easy access to shopping!

https://bit.ly/3O0QGsA
#realestateforsale #realestate #EliteAgents
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Granbury, TX | 4 Bed, 2 Bath | $336,700 Cute, Cozy, and super clean 4 bedroom home located on the FW side of Granbury in Meander Estates! This home has only had 2 owners and is located outside the City limits of Granbury but you still get City water and City sewer! Neighborhood has a very low cost HOA as well! Exterior of this home features nice landscaping, full sod front and back yard, gutters, sprinkler system, wood privacy fence, and a 2 car garage with opener. Interior of home features very nice wood laminate flooring in living and hallway, tile in kitchen, utility and both bathrooms, and carpet in the bedrooms. Split bedrooms all having large with walk in closets. Master bath features double sinks, garden tub, and a separate shower. Don't miss the large utility room with a separate sink! This home is located on a very private and low traffic cul de sac. Come tour this wonderful 4 bedroom, 2 bath home in the highly desired neighborhood of Meander Estates located on the FW side of Granbury with easy access to shopping! https://bit.ly/3O0QGsA #realestateforsale #realestate #EliteAgents
1 week ago
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How to Stay Safe as a Real Estate Agent
Review the top 12 tips for practicing better real estate agent safety.

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How to Stay Safe as a Real Estate Agent Review the top 12 tips for practicing better real estate agent safety. Read more on our blog! https://bit.ly/3xVWw97 #EliteAgents #blog #realestateagent
2 weeks ago
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Heath, TX | 4 Bed, 3.5 Bath | $1,175,000
Exceptional home on 1.57 acres in sought after The Ridge in Heath. Gorgeous curb appeal, circle drive, charming front porch, full upgrade list in transaction documents. 1st floor includes large gourmet kitchen with built in refrigerator, 2 dining areas, 2 large living areas, office, master bedroom, master bath, unbelievable custom master closet, and guestroom w-full bath. 2nd level has 2 bedrooms, 1 full bath, large flex room, and decked attic access with tons of storage. Incredible 44+ acre HOA greenbelt & stocked pond will take your breath away! Relax in the resort style pool or sit on the upstairs patio and listen to the tranquil sounds of the waterfall flowing. Enjoy a large fenced in backyard with a spacious storage shed on the back side of the property. Oversized 3 car garage with plenty of room for a workshop. All furniture is for sale and garage cabinets will stay with an acceptable offer.

https://bit.ly/3QnxLtq
#realestateforsale #realestate #EliteAgents
Heath, TX | 4 Bed, 3.5 Bath | $1,175,000
Exceptional home on 1.57 acres in sought after The Ridge in Heath. Gorgeous curb appeal, circle drive, charming front porch, full upgrade list in transaction documents. 1st floor includes large gourmet kitchen with built in refrigerator, 2 dining areas, 2 large living areas, office, master bedroom, master bath, unbelievable custom master closet, and guestroom w-full bath. 2nd level has 2 bedrooms, 1 full bath, large flex room, and decked attic access with tons of storage. Incredible 44+ acre HOA greenbelt & stocked pond will take your breath away! Relax in the resort style pool or sit on the upstairs patio and listen to the tranquil sounds of the waterfall flowing. Enjoy a large fenced in backyard with a spacious storage shed on the back side of the property. Oversized 3 car garage with plenty of room for a workshop. All furniture is for sale and garage cabinets will stay with an acceptable offer.

https://bit.ly/3QnxLtq
#realestateforsale #realestate #EliteAgents
Heath, TX | 4 Bed, 3.5 Bath | $1,175,000
Exceptional home on 1.57 acres in sought after The Ridge in Heath. Gorgeous curb appeal, circle drive, charming front porch, full upgrade list in transaction documents. 1st floor includes large gourmet kitchen with built in refrigerator, 2 dining areas, 2 large living areas, office, master bedroom, master bath, unbelievable custom master closet, and guestroom w-full bath. 2nd level has 2 bedrooms, 1 full bath, large flex room, and decked attic access with tons of storage. Incredible 44+ acre HOA greenbelt & stocked pond will take your breath away! Relax in the resort style pool or sit on the upstairs patio and listen to the tranquil sounds of the waterfall flowing. Enjoy a large fenced in backyard with a spacious storage shed on the back side of the property. Oversized 3 car garage with plenty of room for a workshop. All furniture is for sale and garage cabinets will stay with an acceptable offer.

https://bit.ly/3QnxLtq
#realestateforsale #realestate #EliteAgents
Heath, TX | 4 Bed, 3.5 Bath | $1,175,000
Exceptional home on 1.57 acres in sought after The Ridge in Heath. Gorgeous curb appeal, circle drive, charming front porch, full upgrade list in transaction documents. 1st floor includes large gourmet kitchen with built in refrigerator, 2 dining areas, 2 large living areas, office, master bedroom, master bath, unbelievable custom master closet, and guestroom w-full bath. 2nd level has 2 bedrooms, 1 full bath, large flex room, and decked attic access with tons of storage. Incredible 44+ acre HOA greenbelt & stocked pond will take your breath away! Relax in the resort style pool or sit on the upstairs patio and listen to the tranquil sounds of the waterfall flowing. Enjoy a large fenced in backyard with a spacious storage shed on the back side of the property. Oversized 3 car garage with plenty of room for a workshop. All furniture is for sale and garage cabinets will stay with an acceptable offer.

https://bit.ly/3QnxLtq
#realestateforsale #realestate #EliteAgents
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Heath, TX | 4 Bed, 3.5 Bath | $1,175,000 Exceptional home on 1.57 acres in sought after The Ridge in Heath. Gorgeous curb appeal, circle drive, charming front porch, full upgrade list in transaction documents. 1st floor includes large gourmet kitchen with built in refrigerator, 2 dining areas, 2 large living areas, office, master bedroom, master bath, unbelievable custom master closet, and guestroom w-full bath. 2nd level has 2 bedrooms, 1 full bath, large flex room, and decked attic access with tons of storage. Incredible 44+ acre HOA greenbelt & stocked pond will take your breath away! Relax in the resort style pool or sit on the upstairs patio and listen to the tranquil sounds of the waterfall flowing. Enjoy a large fenced in backyard with a spacious storage shed on the back side of the property. Oversized 3 car garage with plenty of room for a workshop. All furniture is for sale and garage cabinets will stay with an acceptable offer. https://bit.ly/3QnxLtq #realestateforsale #realestate #EliteAgents
2 weeks ago
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