4.1 Real Estate Office Business Hours #
Business hours are:
Mondays–Fridays: 8:30 AM to 5:00 PM
Saturdays: Closed
Sundays: Closed – Sabbath
4.2 Transaction Support Hotline Hours #
Hotline Support hours are:
Mondays–Fridays: 8:00 AM to 5:00 PM
Saturdays: 9:00 AM to 5:00 PM
Sundays: Based on Availability
4.3 Observed Holidays #
The following holidays will be observed, and the office support staff will be unavailable:
New Year’s Day
Martin Luther King Jr. Day
Memorial Day
4th of July
Labor Day
Veterans Day
Thanksgiving Day
Christmas Day
Most offices do not allow access on holidays. Please check with the on site supervisor.
4.4 Contacting the Company #
Emergency Contacts
If you are involved in an incident resulting in serious injury to people or property, immediately dial 911.
Non-emergency Contacts
A representative of the Company will generally be available during work hours to discuss real estate matters. In a business emergency, the representative may be contacted after business hours.
If the representative cannot be reached, you should not act until he or she is able to contact the Company; however, if the emergency pertains to the wording of a sales agreement, a protective clause to the effect that “this agreement subject to the review and approval of Broker or (client’s) legal counsel within (a time frame) after acceptance of this offer” should be inserted in the contract. Contact the Broker support hotline for immediate assistance during business hours.
Professional Conduct
As a member of the National Association of REALTORS®, you are expected to be familiar and comply with the Code of Ethics. We place a high value on cooperation in the Company between our salespersons, both in the sharing of market and inventory information, as well as working together to provide a high level of service to our clients. Cooperation between salespersons fosters a congenial workplace, ultimately benefits everyone, and fosters a high level of service to our clients.
4.5 Teamwork Encouraged #
AARE’s vision is to create a sharing environment where each member can learn from each other. We should share in each other’s successes as well as learn from others’ mistakes.
Examples of teamwork would be:
- Help others to learn the Company systems.
- Train Company agents on strengths that you have.
- Sharing leads with your teammates.
- Participating in team building events or volunteering.
- Introducing other experienced agents or partners to be a part of the team.
- Treating team members with respect and encouraging their efforts.
4.6 Selfish Behavior Discouraged #
Company policy is NOT to tolerate continued selfish behavior.
Examples of selfishness include:
- Taking leads from other agents without asking first.
- Not sharing with other team members.
- Lying to other agents, staff, clients, or customers.
- Losing your cool and telling off a client or agent.
- Missing team meetings frequently.
- Not attending Company events.
- Not responding to Company emails.
- Not adhering to Company policies.
The Company has a three strike rule for Associates who continue to show selfish behavior. Strike one is a warning. Strike two is a second warning. Strike three is termination. All warnings will be written warnings in email format.
4.7 Substance Use #
Drugs and alcohol, with the exception of prescription drugs necessary for you to perform your duties, are prohibited on the premises, in the workplace, or in the field. Their use may be grounds for suspension or termination.
Under no circumstances is an Associate able to perform his or her services under the influence of drugs or alcohol or any other substance that would leave them otherwise impaired.
Under no circumstances is an Associate to perform his or her services with a client who is substance impaired. In the event that an Associate suspects that a client is under the influence of drugs or alcohol, or is otherwise impaired, you are to cease transacting business and resume only when the client is no longer under the influence.
4.8 Smoking #
Smoking is not permitted on the Company premises, except in specifically designated areas outside the building, if any.Sales and training meetings are held regularly throughout the week via online video communication software (i.e Zoom or Webex). The purpose of these meetings is to provide a format for the exchange of market opinions and ideas, helpful anecdotes, market statistics, recent sales, new listings, mortgage news, training, and any other information deemed valuable to you. These meetings are voluntary in nature, but all Associates are encouraged to attend.
4.9 Company Meetings #
Red Flag meetings (mandatory) will be held, as needed, to inform the Associates of changes to the Independent Contractor Agreement, laws affecting the practice of real estate, and amendments to this Policy Manual. As a condition of affiliation, all Associates are required to attend Red Flag meetings if they are actively selling real estate unless specifically excused, by the Manager, from participation. Ample notice will be given to ensure attendance.
4.10 Training Program and Schedule #
Training meetings are held regularly throughout the week via online video communication software (i.e Zoom or Webex). Please check the schedule on the digital calendar which is posted in our internal announcements and communications application called “Speakap”. If you have not downloaded the communication application “Speakap”, please do so immediately. Contact the Manager for details on how to download it. The purpose of these training sessions is to increase Associates’ understanding of the ever-changing real estate market, real estate law and technology. Training of agents and staff is a critical risk reduction technique, therefore attendance is highly encouraged.
4.11 Office and Conference Room Appearance #
The Company, or the executive suites it works in, employs a cleaning service to do general interior cleaning of the offices on a regular basis. However, it is your responsibility to keep all conference rooms and your work area clean, tidy, and professional in appearance. The conference room and office appearance is a reflection on yourself, as well as the firm, when clients and customers are visiting. Any public areas, including conference or meeting rooms, must be reorganized and cleaned after usage.
4.12 Conference Rooms #
Conference rooms are available for your use for a fee. Fees vary by location and are determined by the executive suite company. They are available on a first come, first serve basis. Some offices have an online reservation system that has been set up by your Manager. Other offices require that you call the secretary to book conference room time. Please check the Company Master document for instructions and office contact numbers to book conference room space. Be considerate of others. When you finish using the room, leave promptly and be sure to clean up when you leave.
4.13 Optional Desks and Private Offices #
The Company contracts with executive suites that provide conference rooms and day offices to all of its Associates on a “by appointment only” fee basis. You will not be provided permanent desk space or a private office. The executive suites where the Company conducts its business offers private offices. If you wish to have a private office you will need to notify the supervisor of the executive suites to negotiate the lease of that private office or a permanent/shared desk space with the executive suites directly. You are responsible for keeping the day office, conference rooms, permanent or shared desk, or private office and the area immediately around it in a neat and professional appearance.
4.14 Office Equipment #
There are copiers, scanners, printers, fax machines, and other necessary office equipment for your use in each executive suite office. There is a charge to use the copier, scanner, fax machine, or printer at the office. Each executive suite office has a separate fee schedule. Contact the supervisor at each executive suite office for a copy of the fee schedule. The Company does its best not to waste paper and encourages all Associates to be “paperless”. This saves money and allows for digital files to be emailed. Scan and send emails as much as possible rather than copying and printing. Use a professional printer anytime you need color copies or large quantities of black and white. Approval from a Manager is required anytime you need to make a large number of copies or prints. Please be considerate of others and limit your time when using shared equipment. You are expected to provide your own computer for your use.
4.15 Dress Code #
Business or business-casual attire is a requirement when you are serving the public in real estate transactions and when representing the Company. Casual attire should be avoided in the workplace. Dress professionally.
4.16 Eating in the Work Area #
All food and meals should be eaten only in the designated area at each office.
4.17 Parking #
The closest parking spaces to the office are reserved for customers or clients. Please park in any other available spaces.
4.18 Keys and Access Cards
You will not receive a door key or access card for the executive suite offices unless you lease a private office. If you do lease a private office from the executive suites, do not allow anyone else to use these items unless you have the executive suites supervisor’s prior written consent. All of these items must be surrendered immediately upon your termination of your lease directly to the executive suite.
4.19 Office Security #
By accepting a key or other means of accessing the executed suite offices or the Company’s administrative office, you are also accepting responsibility for safeguarding the office. Immediately inform the Company of any lost key or lost mail key. There will be a charge for replacement of lost or stolen keys. The Company is not responsible for any theft or loss of personal items left in the office. The last person leaving the office must make sure that all accesses into the building are firmly secured, all lighting and business equipment and appliances are turned off, and that the security alarm is activated before leaving the building.
4.20 Working at Home #
It is permissible and encouraged for you to work from your home, but not to conduct personal consultations with clients at home. Remember that the Broker is required to supervise your activity as a salesperson. Be sure that all listings, transactions, files and documents that you work on in your home are promptly uploaded to Skyslope and submitted to the auditor for review or sent to your Manager for review in the same manner as if you were working from the office.
4.21 Changes in Contact Information #
All changes in name, address, telephone numbers, email address, or other pertinent information of any Associate must be reported immediately by you to the office Manager or secretary who will make a record of the changes and report these changes to any State regulator or Real Estate Commission or State Department overseeing real estate business activity and the local Association of REALTORS® if appropriate. You are responsible for any fees associated with name, address and telephone number changes charged by any State regulator or Real Estate Commission or State Department overseeing real estate business activity or the Association of REALTORS®. You will pay for any costs of printing new materials to reflect these changes.
4.22 Company Supplied Items #
The Company publishes a list of items supplied at no cost to you and items provided at a cost to you when you join. This list and the costs may be modified from time to time. Currently, you can find a list of these items in the “Benefits Magazine” and the “New Agent Guide” booklet provided to you when you joined the Company. Although the magazine is named “Benefits”, the Associate understands and agrees by signing the Independent Contractor Agreement, in which this Policy Manual is incorporated, that the Associate will not expect or receive any “employment benefits” in the traditional sense of the phrase, since the Associate is an independent contractor. Any other supplies not so identified are to be provided by you at your own expense. Your Manager will establish a procedure for the handling of your expenses and reimbursements with the Company. You are expected to comply with this procedure for the billing and collection of expenses incurred by you. Any equipment and supplies provided by the Company are for your business-related use and may not be used for your personal use without the Company’s prior written consent.
4.23 Business Cards #
You will be responsible for the cost of your company business cards.
4.24 Sign Policy #
Each Associate is responsible for the purchase of their A-frames, yard signs, riders, and other on-site marketing items. Signage must be purchased from a vendor approved by the Company. It is your responsibility to assure that the signs meet our format requirements.
Associates must acquire signage consistent with the Company’s sign formats/design. The Company uses yard signs of 18″ x 24″ that hang from a wooden arm. Riders may be attached above and below.
All signage must comply with advertising laws and the regulations in effect in each particular community. Regulations may be obtained from the Company. Any fines incurred due to their improper use will be paid by you.
“Pending Sale” or “Sold” or similar signs may be posted, with the seller’s permission, after acceptance of an offer as long as the posting conforms to the State laws and local Association of REALTORS® and MLS rules and regulations.
If a listing agreement expires or is canceled, a “For Sale” sign should not be left on the property. Such signs must be removed within two days after expiration, cancellation or close of escrow.
Examples of sign templates are available on the Concierge Design Center website (marketing.aare.com), the New Agent Welcome Packet when you join and the “Library” of Skyslope for your review. You are encouraged to obtain a supply of custom signs or sign riders with your name and/or contact number to place on a sign. Sign riders must be purchased through a vendor selected by the Company to maintain graphic consistency and must conform to any size rules as noted above.
4.25 Telephone Policy #
General
The company utilizes a phone service to answer inbound calls during normal business hours Monday through Friday. If a caller requests a specific agent, the caller is given the agent’s cell phone number and email so they may contact them directly. All other calls are sent to the Manager for distribution. The Company has a nationwide toll free number for customers and clients to call 888-32-AGENT (888-322-4368). Agents are advised to use their personal cell phones to conduct their business and are responsible for the cost of their personal cell phones.
4.26 Caravans #
Associates are encouraged to participate in broker caravans in your area to familiarize yourself with the current listings on the market.
4.27 Fees, Bonuses and Commissions #
All monies earned using your license must be made payable to the Company. This includes, but is not limited to commissions, bonuses, fees, referrals, BPO’s etc. You will be paid out of the fees and commissions earned by you, and for which you are the procuring cause, based on the Commission Schedule published separately by the Company. Payment to you, less expenses and offsets, is conditioned upon actual receipt of the compensation by the Company. Payment is further conditioned upon review of your file by the auditor and your Manager and the file being deemed by him/her to be complete.
4.28 Deductions #
All expenses of any kind incurred by you with the Company; or incurred by the Company on your behalf, including unpaid marketing programs, CoStar dues, board dues and/or any such expenses that you have agreed to pay the Company but have not paid in accordance with Company policy, will be deducted from the next commission payment that is due you.
4.29 Monthly Advances/Draws #
It is the Company’s policy to not pay monthly advances or draws to our salespersons or loan officers.
4.30 Trust Funds #
Company policy is to handle all trust funds with care and comply with all laws. The Company primarily maintains trust fund bank accounts for its property management services, not for earnest money deposits of residential /or commercial sales or leasing. Earnest money deposits of residential/ or commercial sales or leasing are exclusively traditionally made by the client directly to the settlement or escrow company service. The Company only maintains a trust fund bank account in certain States and does not maintain a trust fund bank account in other States, depending on each State’s regulations and requirements and whether or not the Company is conducting property management services in that State. Inquire with your supervising Broker/Manager as to what the policy is in your state.A list of States in which the Company maintains a trust fund account (and conducts property management services) can be found in Exhibit D.
Introduction
Since trust fund handling violations are a major reason for disciplinary action it is company policy not to handle checks. A, a thorough understanding of and compliance complying with the laws and regulations regarding trust funds are of the utmost importance important. This section will focus on the laws and regulations governing the handling of trust funds and the maintenance of a trust fund bank account. AGAIN, IT IS COMPANY POLICY NOT TO ACCEPT CHECKS.
Definition of Trust Funds
- Deposit checks made payable to the broker, the seller, a title (escrow) company or an attorney.
- Rent money received from a tenant.
Amount of Days to Deposit Trust Funds
Within a certain amount of days (per each State’s licensing laws), when a licensee accepts trust funds on behalf of the licensee’s broker, the licensee must take one of the following actions:
- The funds can be given to their owner. (Note: written instructions are required from all principals to do so);
- The funds can be deposited into a neutral escrow depository; or
- The funds can be deposited into the broker’s trust fund account.
Licensees must be familiar with and abide by contractual timeframes for their clients to deposit their Earnest Money Deposit (EMD).
Ownership of Trust Funds
An initial good faith deposit given by a buyer will be considered the buyer’s funds. However, if the buyer defaults, ownership of the funds, depending on the agreement between the buyer and the seller, may transfer to the seller.
The buyer’s deposit cannot be refunded to the buyer without the express written consent of the seller. The reason for this rule relates to ownership of the money. Depending on the terms of the underlying offer to purchase, the ownership of the funds can move from the buyer to the seller upon the occurrence or non-occurrence of specified events.
Advance Fees
All advance fees received by a broker must be deposited into the broker’s trust fund account. They are not the funds of the broker. They are the funds of the client. If the funds are deposited directly into the account of the broker, such a deposit is deemed embezzlement, and the principal can recover damages, in certain States treble damages (triple the normal amount), and attorney’s fees. Once the fees have been deposited into the trust fund account, they cannot be withdrawn except for the benefit of the principal whose funds they are. They may be withdrawn for the benefit of the broker when the agent’s services are completed, and then only upon following required procedures. DO NOT PERSONALLY ACCEPT ADVANCE FEES. YOU MUST HAVE APPROVAL FROM YOUR BROKER/MANAGER AS ALL ADVANCE FEES MUST BE DEPOSITED ELECTRONICALLY INTO THE TRUST ACCOUNT.
4.31 Trust Fund Records To Be Maintained #
If the Company maintains a trust fund bank account in a particular State, the funds in the account must be kept separate, distinct, and apart from funds belonging to the broker or to any other person for whom the broker holds funds in trust. Additionally, the following must occur:
- The Broker must maintain detailed trust fund records.
- Trust fund records need to be maintained in columnar form and all required columns of information per State regulations and must be filled out completely.
- Trust fund records reflected cannot contain any inaccurate postings of dates or amounts.
Whether the Company maintains a trust fund account or elects not to maintain a trust fund account in that particular State, an Agent in either case, is required to maintain trust fund records as soon as the Agent has any contact with trust funds.
Agents and Associates are strictly prohibited from opening their own trust fund account for any reason.
4.32 Commingling & Conversion #
Depositing any trust funds into the Company’s operating account is prohibited and considered commingling. In the event that trust funds are mistakenly deposited into the operating account in error, the funds must be immediately returned to the proper trust fund account. Details of the error should be recorded in the bookkeeping software. Any funds made out directly to an Associate of the Company is prohibited. An Agent / Loan Officer cannot receive funds in their personal name or their entity name from clients for commissions, management fees, credit reports, appraisals, marketing, or inspection fees or any other type of fee. Agents cannot deposit any type of fee into his or her operations account. This is conversion and/or commingling because these funds are trust funds that should be held by the Company. If a client mistakenly sends or gives funds to an Agent / Loan Officer in error, the Agent / Loan Officer must return the funds immediately and instruct the client to make out the funds payable to the Company to be held in a trust account.
4.33 Operations Account Reconciliation #
The Company shall reconcile the operations account at the end of every month. The Company will also reconcile its trust fund account(s) for property management monthly. Associates are required to reconcile and maintain their own operations accounts.
4.34 Safe Work Environment #
The Company is committed to providing a safe work environment for its staff and salespersons. If you observe any situation or condition which could pose a health or safety risk to employees, agents, clients, or the public on any of the Company’s premises, promptly notify your Manager. The Company has implemented safety policies and procedures that comply with local and state laws. See https://www.dol.gov/agencies/whd/workers for each State’s Labor Laws and Codes”.
4.35 Safe Driving #
You are expected to keep your automobile in a properly maintained and safe operating condition at all times. You are responsible for damage or injury caused while driving. It is your obligation to drive in a safe, responsible, and alert manner. This is especially true if you have clients in your car. Under State and Federal law, drivers are generally prohibited from using a wireless telephone (must be a hands-free cell phone), and from reading, writing, or sending a text message while driving. Cell phones can be a distraction; do not become distracted while driving.
As real estate professionals, we all work out of our cars a great deal of the time. Since instant communication with our clients, other licensees, and various vendors is so critical to making sales happen, we also use phones, especially cell phones, a great deal of the time. The combination of cars and cell phones, however, can be deadly – for you, for your clients and for others. Our brokerage has, therefore, established the following policy for all salespersons and employees, which we hope will minimize the dangers that can result when cell phones are used while driving:
- When initiating calls, pull over and stop your car before dialing.
- When receiving calls, pull over and stop your car before answering. Most cell phones have a means of accessing the phone number of the last caller, so you won’t have to write down the caller’s phone number or worry about missing a call.
- If you absolutely must converse on your cell phone while driving, follow these tips to increase safety:
- Use a hands-free device. Currently, this means either an earphone or speaker device. Place the phone where you can see it without diverting your eyes from the road for any longer than necessary.
- Program emergency and frequently-called numbers into your phone.
- Practice using your cell phone so you know how to use the hands-free devices, memorized numbers, and other features without taking your eyes from the road.
- If your phone has voice activation, which allows you to initiate calls to pre-programmed numbers by saying a word or two, use it.
- Keep conversations as brief as possible. There is nothing wrong with telling a caller that it is not safe to talk and drive right now and that you will call him/her back as soon as you can do so safely.
- Drive in slower lanes and increase the distance between your car and the one ahead so you’ll have more time to react to problems that may occur.
- Don’t try to take notes regarding the conversation.
- Don’t engage in complex discussions that divert your attention from road and traffic conditions.
- Don’t answer the phone if it rings when you are in a traffic situation where your safety could be compromised. Most phones have voicemail and you can return calls once you are stopped and in a safe place.
- Never forget that safe driving is your first priority!
4.36 Personal Transactions #
You may buy or sell real property for your personal use subject to the following guidelines.
- Listings
See the Agent / Loan Officer-Owned Property section of this Policy Manual for information regarding the handling of listings of property in which you have an ownership interest.
- Commissions
Upon the sale or purchase of real property in which you have, or will have, an ownership interest, you agree to pay to the Company a commission based on 2.5 % of the sales price in the amount that the Company would have received, net of any commission paid to you, based on your commission split on that transaction.
Upon the lease of real property in which you have, or will have, an ownership or possessory interest, you agree to pay to the Company a commission based on 5% of the annual rental payments in the amount that the Company would have received, net of any commission paid to you based on your commission split for that transaction.
An exception exists for one purchase of a primary residence within a 12-month period, in which case you will be allowed to keep 100% of the entire commission paid for that transaction minus the 5% overhead fee per your commission schedule and based on a full 2.5% commission.
Agents / Loan Officers acting as an investor on a regular basis (more than one investment per year) may request in writing from the Manager an exception to receive 100% of the entire commission when purchasing more than one investment property within a 12-month period minus the 5% overhead fee. This exception will not apply on listings. All Agent / Loan Officers-Offciers- Owned listings must be listed and sold through the Company and the Agent must follow the E&O policies pertaining to Agent-Owned Property to protect the Agent and Company from liability. Agents may be able to represent themselves, on purchases only, outside the Company with written approval from the Manager and a signed liability waiver, but cannot receive a commission from the seller. No Company resources, documents, forms, staff or E&O can be used for these purchases. Documents may never contain the name of the Company or any language that would suggest the Company is representing the buyer. See Section 15: Litigation & Claims Handling under Agent / Loan Officer – Owned Property for more information.
An exception exists for one sale of a primary residence within a 12 month period, in which case you will be allowed to keep 90% of the entire commission paid for that transaction minus the 5% overhead fee per your Commission Schedule and based on a full 2.5% commission.
The purchase or sale by you of a primary residence, for which no commission is paid to the Company, will not count towards any monthly or annual awards.
- Indemnity
Except as may be covered by the Company’s Errors & Omissions policy of insurance, you agree to indemnify and hold harmless the Company from any and all claims against you and/or the Company arising out of the purchase, sale, or lease of any real property in which you have, or will acquire, an ownership or possessory interest.
- Disclose Interest in Property
In selling property, you own or in which you have an interest, you must disclose your ownership or interest in writing to the buyer or buyer’s representative. If you act as the buyer’s agent, you must also disclose the nature and extent of your direct or indirect ownership interest in the property by a person related to you by blood or marriage, by an entity in which you have any ownership interest, or by any other person with whom you have a special relationship.
You must disclose to the owner or owner’s agent in writing that you are a real estate licensee whenever you acquire an interest in or buy or present offers for yourself, any member of your immediate family, your firm, any member of your firm, or any entity in which you have an ownership interest.
4.37 Vacation/Leave Time for Associates #
The Company encourages a balanced lifestyle and vacation. The Company does not control Associate’s time off except as noted herein. If an Associate plans to be absent from the Company for any significant period of time, he or she must inform the Company in writing. A substitute agent approved by the Manager or Broker must be assigned to cover for you during any absence. Failure to do this will require the Company to make necessary assignments and determine the appropriate compensation, if any. You must always notify the Manager in writing of your absence prior to leaving on vacation.
4.38 Extended Leaves of Absence #
The Company will grant extended leaves of absence for only extenuating personal reasons. Discuss any request for a leave of absence with your Manager, as well as how any pending business will be handled and how your compensation may be affected. If your absence exceeds 30 days, the Manager will reassign all of your Company leads to another Agent / Loan Officer unless otherwise agreed before you leave with the Manager in writing.
4.39 Jury Duty #
Jury service is a civic duty. If you are called to serve on a jury, advise your Manager and arrange with your Manager to have a fellow salesperson handle your business while on jury duty.
4.40 Injury at Work #
If you are injured at work or in a work-related activity, you must report the injury to your Manager at the earliest practicable time.
4.41 Antitrust Policy #
The Company maintains a strong policy against any antitrust involvement by the Company, its agents, or employees. Few obligations can be taken more seriously than this area. The Company requires each person associated with the Company to participate in antitrust education and acknowledge his/her understanding of these principles. Two areas of the primary antitrust focus are:.
- Price Fixing: Price fixing means any agreement, setting, consent to, suggestion, or implication with a competitor regarding a fee to charge. This includes fees charged to the public, fees split among brokers, and fees paid to agents. “Agreement” can be overt, covert, express or implied. It is very broad based and can even be suggested or implied by casual conversation with any competitor.
Accordingly, The Company, its agents, and staff are prohibited from discussing with any competitor, including an individual agent, any aspect of the fees the company charges or how total fees are split. The Company determines its charges based on the Company’s own independent internal analysis of its expenses, its revenue, its desired profit level, and its choice of the type and level of service it desires to provide.
In any discussion with a member of the public regarding our charges, such as a listing appointment, the only acceptable answer about company fees is the foregoing explanation. Do not be drawn into a discussion about company fees, such as commissions as “the standard rate,” “the Board rate,” “the typical rate” or the like. If questions arise about other company’s fees or commission rates such as commissions, suggest that the potential client call several competitors tocompetitorsto inquire directly from them. and ask about their rates.
- Boycotting Competition: It is also a violation of federal law to make any agreement, express or implied, with a competitor to boycott or otherwise not deal with a third competitor. For example, assume Discount Realty opens an office. Then assume Bob Broker, an agent with Big Bucks Broker, and Alice Agent, an agent with Just As Big Broker, are having lunch one day and discuss the competitive impact of Discount Realty. Bob and Alice agree that Discount Realty is a danger to their large listing portfolios and further agree that individually they will not show Discount Realty’s listings because “Something has got to be done about that price-cutting monger.” This simple agreement with two agents is an illegal boycott. Even if it were implicit and not overt, it could be construed as an illegal boycott.
The Company prohibits any agent / loan officer or staff member from making any agreement, or suggestion with a competitor, including an individual agent, that he/she or the Company will not deal with a third broker or agent whether it is a listing company, buyer’s brokerage, discount broker, or any other broker or agent.
4.42 Antitrust Guidelines Recap #
Do not engage in any verbal or written conversations with agents or brokers with other companies that could be construed as an antitrust violation. This includes, but is not limited to, the following:
- The setting of commissions, charges, or other fees to the public;
- Boycotting or not doing business with a particular person or entity;
- The setting of rates or percentages of compensation to be paid to cooperating brokers;
- Refraining from conducting business in specified territories, refraining from providing certain services, or refraining from servicing certain customers.
4.43 Transaction Coordinators & Auditors #
The Company has approved one or more transaction coordinators (TC). A transaction coordinator can assume many roles. In this Company, the approved TC’s:
- Review all agreements and documents to determine if all signatures have been obtained.
- Calendar all dates in an escrow period.
- Monitor compliance with contractual requirements.
- Order inspections (depending on which TC is used).
- Originate Broker escrow files.
- Arrange for delivery of documents by mail or electronically.
- Interface with outside affiliates such as lenders, mortgage brokers, inspection companies, professional reporting companies, escrow companies and title companies.
- Reports deficiencies, delinquencies, or problems to the licensee, Manager and Broker.
A TC is required to be used in your transactions unless prior consent is given by the Manager or Broker for an Associate to originate and organize their own paperwork file. You will be assessed a TC fee per transaction (by your TC of choice) generally in the amount of $295-$595, depending on which approved TC you choose to work with. Each TC sets their rates. In addition to the TC fee, a $25-$75 auditor fee, generally $50 (depending on the type of transaction completeness of the file), is assessed on any closed escrow for the auditor to review the file and ensure all documents are in order.
4.44 Risk Management and Errors & Omissions (E&O) Fee #
Each year, the Company shall separately establish and publish the amount to be paid by all salespersons, and the method of that payment, as a Risk Management Fee. This Fee will be used by the Company to offset the costs of the Errors & Omissions policy of insurance; legal advice related to transactions and escrows as needed; settlements, judgments, and legal fees and costs of claims and litigation; and other risk management costs, such as education and training.
Currently, the Company does not assess a risk management fee. In the future, if needed, the Company reserves the right to implement a Risk Management Fee. The Company does assess an E&O insurance fee per transaction, unless the Associate carries their own E&O policy. The E&O fee varies from year to year, generally it is $25-75 per transaction depending on the risk profile in each State and the amount of outstanding claims. The E&O fee is only charged on closed transactions. Inquire with your Broker/Manager as to the current E&O fees in your state.See Exhibit F for current E&O fees per state.
4.45 Associate Business Expenses #
You are prohibited from obligating the Company to pay for any expenses without the prior written consent of your Manager or Broker. Any expenses relating to customers or clients, transactions, entertainment, or Associate’s personal promotion will be paid for by the Associate and not the Company, unless otherwise agreed in writing by your Manager or Broker. As an independent contractor, each Associate is expected to be in business for herself/himself. Generally, all business expenses will be the responsibility of the Associate.
The Company provides certain items at little or no cost to the agents. The following items noted with an asterisk* may come at an additional cost to the associate. Inquire with the Manager. The Company has done its best to provide these items for little or no cost or an option to to a basic/free version of the product or service.
- Select Company software programs, websites listed below:
- Online software programs – ,Skyslope Google*, and Real Geeks and, Basic/Essential AARE Membership
- Development of Company marketing material.
- All marketing and advertising costs for Company leads and costs on listings from Company lead sources.
- Workman’s Comp (in States that require it). *See Appendix G for States that are covered.
- Company parties and events.
- Company staff and agent support (excludes individual Agent’s using staff as a personal assistant).
- Office expenses for executive suite access to conference rooms, day offices, and the use of any Company offices (private office expenses are the responsibility of the Associate, if desired).
- Office yard signs, riders, or office open house signs available in limited locations.* Personal signs are at the associate’s expense.
The Associate will be expected to pay for all other expenses including, but not limited to, these particular items:
- Cell phones and any data plans for mobile devices.
- All marketing and advertising on listings from personal lead sources.
- Personal advertising, business cards, custom yard signs, lockboxes, and personal websites.
- All automobile expenses, gasoline, and insurance.
- Personal telemarketers and personal assistants.
- Copying, printing, scanning, faxing, and mailing expenses.
This list of expenses paid by the Company or Associate may be amended by the Company from time to time. Any changes will be posted by appropriate publication to all Associates.
4.46 Performance Evaluations, Status Reports & Termination of Inactive Associates #
From time to time the Company produces performance reports to evaluate if all Associates are performing and producing income for the Company. This report serves as a record of accountability for the Associate and allows the Manager or Broker to be able to review their performance. From time to time the Company will contact the Associate to discuss the performance evaluation by reviewing the Associate’s Status Report and make suggestions to improve the Associate’s performance. If an extended period of time (12 months or longer) goes by and an agent / loan officer is not producing any income for the Company, and has not previously produced any income for the Company, the Broker may request the agent / loan officer to unaffiliate with the Company and terminate the relationship. Alternatively, the Associate may be able to remain affiliated with AARE and become a part time agent / loan officer by working on a referral-only basis with the approval of the Broker or Manager.
4.47 Associate Vehicle #
Transportation will not be provided by the Company. In the course of real estate transactions, you must use your personal vehicle. All operating, maintenance, repair and other related expenses will be paid for solely by you.
It is the Company’s policy that your automobile will be clean and have a professional appearance in order to reflect well on you and the Company. It will be maintained in a safe operating condition at all times. You shall at all times carry liability insurance on the automobile with coverage for personal injury and property damage. Liability coverage of $100,000 per person/$300,000 per accident is the minimum that should be obtained. Consult carefully with your insurance agent. You must have the Company named as an additional insured in your insurance policy and pay the cost, if any, of that additional coverage. Or you can sign an addendum stating that you won’t be transporting clients in your vehicle. Changes in coverage will not become effective against the Company until fifteen (15) days after the Company has received and approved the coverage changes. At the signing of this agreement and at the time of each policy renewal or change of carrier, you shall provide evidence of insurance to the Company.
Any Associate carrying liability coverage less than $100,000 per person/$300,000 per accident on their automobile may not allow customers or clients in their automobile at any time. Any claim against the Company due to an Associate not carrying liability insurance or not carrying enough liability insurance will be the sole responsibility of the Associate.
Business liability coverage shall also be maintained, possibly as part of Associate’s personal liability or homeowner’s coverage.
In accordance with local, State and Federal law, you must require that all passengers wear a seatbelt and any young child be secured in a car seat or booster. In addition, all young children must be properly secured in the backseat per the local and state guidelines. For more information, see the local and state department or authority of motor vehicles websites.
You should also note that any infant’s car seat (children approximately one year or younger) should not face forward, but should face the rear of the vehicle. In addition, children and small adults should not sit in the front passenger seat. Airbags are known to release with such force that injury or death is possible for children and small adults. Local and State laws require that in vehicles equipped with an active passenger-side front air bag, a child less than five years old and less than 40 pounds in weight shall be properly secured in a rear seat (if the vehicle has a rear seat), unless the child restraint system is designed for use with air bags.