The behavior comes from how Microsoft Teams distinguishes between:
- Personal Microsoft accounts used with Teams Free
- Work or school accounts that belong to an organization tenant
The messages seen indicate two things:
- The Teams mobile app is trying to sign in as if this were a work/school (organization) account, so it expects an invitation from an organization or an existing org tenant.
- When selecting Create new account in the browser, the backend detects that the email domain is treated as reserved in that flow, so it blocks creating an org-based Teams tenant with that address.
To use Teams with a personal Hotmail address, the correct path is to use Microsoft Teams Free with a personal Microsoft account, not to create or join an organization tenant.
Actionable steps:
- Confirm that the Hotmail address is a personal Microsoft account and can sign in elsewhere (for example, Outlook.com, OneDrive, or Xbox). If it works there, it is a valid Microsoft account.
- Install or open Microsoft Teams Free and sign in specifically as a personal account:
- Follow the guidance in “Get a free version of Microsoft Teams (for work, school, or friends and family)”: to use Microsoft Teams Free, sign in with a personal Microsoft account such as Hotmail.
- If the app offers a choice between work/school and personal, choose the personal option.
- If already signed into Teams on the phone with the wrong account type, sign out completely and sign back in as a personal user:
- Open the Teams app.
- Tap the profile picture or More.
- Under Accounts and Orgs, select the current account and choose Settings → Sign out, then confirm.
- Start Teams again and sign in following the Sign in to Microsoft Teams Free for the first time with an existing Microsoft account steps.
- If still seeing the “not using Teams yet / invited by org” message, avoid the Create new account path for organizations and instead:
- Use the Teams Free sign-in flow described in the Teams Free documentation.
If there is also a separate work or school account on the device, ensure that the Hotmail personal account is selected when signing in or switching accounts, as described in the Teams Free guidance.
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