7.1 Proprietary Information #
Treat all client information as confidential and proprietary. You have a fiduciary duty to your clients and should never use any information learned during the course of your representation of your clients in any manner adverse to their interests.
7.2 Sharing Information #
It is the Company’s policy to make a full, open, and sincere effort to cooperate with other Company salespersons, including sharing information, unless the principal has given instructions to the contrary. This does not mean, however, that you should disclose confidential information about your client or the Company.
7. 3 Online Privacy Policy #
Company policy is that all Associates must have a privacy policy on any website advertised that collects personal information. An example of a privacy policy that may be used is the following:
“We respect your right to online privacy. When you register as a member of this site or otherwise provide any personal information to us online, that information will only be used in conjunction with providing you with enhanced services related to the site. It will never be sold to any third party.”
“We may, for instance, contact you to offer assistance, provide information, or otherwise help with your real estate search or sale. In the event our associates are occupied with current clients when you register, we may share your information with partner real estate agents at other local companies whom we have established a trustworthy relationship so they may service your needs immediately. We may also provide you with enhanced services such as an e-newsletter or instant alerts when homes that match your search criteria come on the market. You can opt out of communications at any time via a simple link in our emails.”
Anonymous Information
Like most sites on the Internet, we also collect anonymous data on how our visitors use our site. This data reflects site usage patterns gathered during thousands of customer visits each month and does not contain any personally identifying information whatsoever. We reserve the right to share this anonymous data, provide log files and other databases of user information to third parties for analysis, and to use this information to better understand client traffic and improve our online services.
Terms of Use
This website is not intended to replace professional financial, investment, or legal advice. Though we have endeavored to provide the most accurate and timely information available, some of this information is complex and subject to rapid change. As a visitor to our website, you acknowledge and agree that any reliance on, or use of any information available on this website, shall be entirely at your own risk. For accurate and up-to-date information on the local real estate market, please contact a licensed real estate agent.
7.4 Fair Housing #
We live and work in a diverse, multi-cultural society. The Company is committed to equal opportunity, fair housing, and complying with all applicable local, state, and federal fair housing laws, Article 10 of the NAR Code of Ethics, and the NAR Code of Fair Housing Practices.
7.5 Agency Relationships and Duties #
- Recognized Forms of Agency
The Company generally recognizes five forms of agency:
- Single Agency (Seller’s Agent exclusively or Buyer’s Agent exclusively).
- Sub-Agency (Sub Agent of listing brokerage in States that use Sub-agency).
- Dual Agency (if permitted by State). See Exhibit J for a list of States and legal types of agency in each State.
- Designated Agency (if permitted by State). See Exhibit J for a list of States and legal types of agency in each State.
- Transaction Agency (“aka” a facilitator, when dual or designated agency is not permitted or a client rejects representation).
If the Company has the listing, we represent the seller only, unless you or another licensee working for the Company also brings in the buyer, in which case the office represents both the buyer and the seller and is a dual agent. If the Company is working with the buyer and does not have a listing agreement with the seller, we represent the buyer exclusively. Remember, the agency relationship is created through the Broker. If you have listed the property and another salesperson from this Company brings an offer from a buyer, a dual agency will be created.
B. Duties and Standards of Conduct
When you represent a principal in a transaction you have a fiduciary duty to that person. This means you have a duty of utmost care, integrity, honesty, and loyalty in your dealings with that principal. In addition, a listing agent owes the buyer, and a buyer’s agent owes the seller, the following duties:
- Honesty.
- Good faith and fair dealing.
- Disclosure of known facts materially affecting the value or desirability of the property that is not within the diligent attention or observation of the parties.
- The exercise of reasonable skill and care in performance of your duties.
In situations involving dual agency, it is particularly important for each agent to realize that she/he must hold confidential the information of both buyer and seller, regardless of which party the particular agent is working with, in accordance with the agency agreements, State regulators, and the NAR Code of Ethics. As a reminder, dual agency is not permitted in every state. As a Licensed Real Estate Professional you are required to know your state’s policies and abide by them.See Exhibit J for a list of States and legal types of agency in each State.
- Agency Disclosure Requirements
The agency disclosure law applies to sales, exchanges, and leases for more than one year, involving real property improved with one-to-four dwelling units, stock cooperatives, and mobile homes. The law applies whether or not the property is owner-occupied. You must provide a statutory disclosure form (exact form varies by State) that is titled similar to “Disclosure Regarding Real Estate Agency Relationships” (produced by the State Associations of REALTORS® or similar library) in every applicable transaction.
If you represent the seller, you must provide the disclosure form to the seller BEFORE entering into the listing agreement. Inform the seller of our policy regarding agency as set forth above. Get a signed “Acknowledgement of Receipt.”
If you represent the buyer, the law requires that you must provide the buyer with an agency disclosure as soon as practicable BEFORE executing an offer to purchase. Don’t forget to get a signed acknowledgment of receipt.
When you present an offer and this office is not the listing agent, you must also provide an agency disclosure to the seller as soon as practical BEFORE presenting an offer. Delivery of the disclosure to the listing agent is generally sufficient. Delivery may be made in person, by mail, or by facsimile.
- Agency Relationships
The Company adopts this written policy identifying and describing the relationships in which the licensees of the Company may engage with sellers, landlords, buyers, or tenants. As used in this policy, the word “Company” means the Company and its affiliated licensees.
The Company acts as listing agents (and/or landlord’s agents) through written listing agreements with sellers (and/or landlords). The Company encourages its agents to establish agency relationships with buyers (and tenants) through written buyer (and/or tenant) agency agreements or other written agreements for brokerage services at first substantial contact with buyers (and/or tenants). However, if a buyer (or tenant) is initially unwilling to enter into a written buyer (or tenant) agency agreement, it is permissible for agents of the Company to represent the buyer (or tenant) without a written buyer (or tenant) agency agreement. The Company’s agents should encourage the buyer (or tenant) to put the agency agreement in writing as soon as possible. As required by the real estate law, a buyer (or tenant) agency agreement must be in writing no later than the time an offer to purchase (or lease) is presented to a seller (or lessor) or the seller’s (or lessor’s) agent.
Dual Agency (if permitted by State). See Exhibit J for a list of States and legal types of agency in each State.
If a represented buyer desires to purchase a Company listing (in-house sale), the Company will act as a disclosed dual agent in the transaction with the consent of all parties involved in the transaction. Written consent of all parties to the transaction is required before the Company will act as a disclosed dual agent except in cases where the Company is representing the buyer pursuant to an oral buyer agency agreement. Consent to act as a dual agent shall be obtained from the seller and the buyer at the time of entering into a listing, purchase or lease agreement or written buyer agency agreement through the proper completion of the statutory disclosure form (exact form varies by State) titled similar to “Disclosure Regarding Real Estate Agency Relationships” (produced by the State Associations of REALTORS® or similar libraries). A buyer agency agreement must be in writing no later than the time an offer to purchase is presented to a seller or the seller’s agent and written authority to act as a dual agent must be obtained no later than the time one of the parties represented by the Company makes an offer to purchase, sell, rent, lease, or exchange real estate to the other party.
Designated Agency (if permitted by State). See Exhibit J for a list of States and legal types of agency in each State.
When the Company represents both the buyer and seller in the same transaction, the firm may, with the prior written consent of the buyer and seller, designate one or more individual brokers associated with the firm to represent only the interests of the seller and one or more other individual agents associated with the firm to represent only the interests of the buyer in the transaction. Sellers and buyers must indicate their consent for the Company to engage in “designated agency.” This can be done with an addendum or revision to the statutory disclosure form (exact form varies by State) that is titled similar to “Disclosure Regarding Real Estate Agency Relationships” (produced by the State Associations of REALTORS® or similar libraries).
It is the Company’s policy that the listing agent will automatically be appointed as the designated agent for the seller and the buyer agent automatically will be appointed as the designated agent for the buyer. Exceptions to this policy are as follows:
- A licensee shall not be designated to represent the interests of only one party if the licensee has actually received confidential information concerning the other party in connection with the transaction.
- A Broker or Manager shall not act as a designated agent for a party when a provisional agent, associate broker, or manager under her/his supervision will act as a designated agent for the other party.
If one of the above exceptions applies, the Broker or Manager is authorized by this policy to make the appointment of designated agents on behalf of the Company, or, in the alternative, to make a decision that the Company will not engage in designated agency with respect to the transaction.
Mandatory Buyer Agency Events
It is the policy of the Company that any agent working in the following circumstances MUST act as an agent of the buyer:
- The agent is buying property for her or himself.
- The agent is working with the agent’s immediate family, that is, mother, father, brother, sister, children, any of their spouses or any business owned fully or partially by any of these persons.
Strongly Recommended Buyer Agency Events
It is the policy of the Company that any agent working under any of the following circumstances is strongly urged to work as a buyer’s agent:
- The agent is working with any relative by blood or marriage not in the agent’s immediate family as defined above.
- The agent is working with a close friend, business associate, or long term past customer or client.
- The agent is working with a seller of a currently or previously listed property to find property to buy. The agent may be concurrently working with the seller to sell the property and also working to buy a new property. This event also applies to a seller whose property is under contract or closed and is working to buy a new property.
Buyer Agency Oral Agreement
If a buyer (or tenant) is initially unwilling to enter into a written buyer (or tenant) agency agreement, it is permissible for agents of the Company to undertake to represent the buyer (or tenant) without a written buyer (or tenant) agency agreement. The Company’s agents should encourage the buyer (or tenant) to put the agency agreement in writing as soon as possible. Once an oral agreement is made the agent must submit a letter similar to the one below as soon as possible to the client by postal mail or email. Make sure to receive confirmation to confirm the existence and specific terms of any oral relationships. Associates must document that the Associate attempted to review the firm’s buyer exclusive agency agreement with a buyer prior to representing the buyer on an oral basis.
Example Letter to Client – Oral Agreement of Buyer Agency
Firm Name/Address/Date
Client Name
Address
Dear ___________________:
I am looking forward to working with you in your search for real estate. As we discussed, a buyer has several choices as to how a real estate firm and its agents will work with the buyer. You have indicated your preference that I begin working with you as a buyer’s agent under an unwritten agreement, which is permitted up to a certain point in the relationship. The purpose of this letter is to confirm the most important terms of our agreement.
The terms of our agreement with you are as follows:
- I will act as a buyer’s agent for you on behalf of our real estate firm.
- I will assist you in locating and buying residential real estate in the following geographical areas_________________.
- Our agreement will continue until (1) either of us notifies the other that the agreement is terminated or (2) another
agreement is created in writing between us.
- The agreement is non-exclusive.
- I will show you any properties where the listing firm or seller will offer compensation to our firm.
- Our firm will seek compensation from the listing firm or seller and not from you, and you agree that our firm may
receive any compensation offered, including bonuses.
- If you become interested in property where no compensation is offered, we would need to enter into a further
agreement addressing how I would be paid for assisting you in buying the property.
- If you become interested in property listed with our firm, the firm may represent both the seller and you as a dual
agent. If our firm acts as a dual agent, the firm may designate an agent to represent you.
- You understand that other buyers represented by our firm may seek property, submit offers, and contract to purchase
property through our firm, including the same or similar property in which you may be interested.
You will recall from our discussion of the “Working with Real Estate Agents” brochure that our buyer agency agreement would need to be put in writing no later than the time we might present an offer to purchase on your behalf, or we would be prohibited from continuing to represent you. Sample copies of the buyer agency agreement used by our firm and referred to above are available upon your request.
If you feel that this letter does not reflect the terms of our agreement, or if you have any questions regarding anything in this letter, please contact me at your earliest convenience.
____________________________
Agent Name
7.6 Buyer Qualification Policy #
Whether acting as an agent/loan officer of the seller or buyer, qualifying the buyer is a critical step in completing a property transaction. The Company strongly recommends that each agent/loan officer become knowledgeable, through company training and offered continuing education programs, about properly qualifying a buyer as to her/his financial ability to purchase a property. Financial qualification has two major parts, they are as follows:
- Loan Qualification
If working as an agent of the seller and are dealing with a buyer, the agent has a duty to act diligently for her/his client the seller. Determining whether a buyer is financially able to purchase any property, ultimately your seller’s property, is part of that diligent duty. While there may be times when financial qualification information is difficult to obtain (such as in the case of a buyer of a luxury home) the agent must take diligent steps to determine financial qualification. Some of these steps may include:
- Securing a lender’s financial qualification form for the buyer to complete.
- Setting up a meeting between a lender and buyer to discuss financial ability to qualify for a loan.
- Providing necessary information to a buyer about property so that she/he can respond as to whether she/he can get a loan.
- Request Proof of Funds
In order to help avoid a later claim that the agent/loan officer was acting as an undisclosed dual agent, an agent working with a buyer as a listing agent should take great care not to give the buyer the impression that the agent/loan officer is representing the buyer. If, in assisting the buyer with the loan qualification process, the buyer or any third party (such as a potential lender) attempts to disclose to the agent information of a confidential nature about the buyer’s financial condition, the agent should remind the buyer (or the third party) that the agent represents the seller and would be required to disclose any such information to the seller.
If working as an agent/loan officer of the buyer, the agent/loan officer has the same duty to act diligently for her/his client. In this case, however, the client is the buyer, not the seller. This approach changes the perspective of the seller’s agent in that the buyer client has a right to expect that the agent will diligently determine whether a buyer can qualify to purchase a certain type of property. Some of these steps may include:
- Completion of a financial qualification form. This form should be sufficient in detail and accuracy so that the buyer is reasonably sure of qualification. If an agent is not sure of her/his level of skill to complete such a form, the agent should get further education and training and immediately call the Manager or lender to assist.
- Consultation with the buyer and a lender to determine financial ability to qualify for a loan.
The difference in the approaches between a seller’s agent and buyer’s agent is the degree of analysis. As the buyer’s agent, you are required by fiduciary obligations to conduct a more “in-depth” analysis of the buyer and the buyer’s circumstances.
- Estimated Closing Costs
The second type of financial qualification which accompanies loan qualification (and in many cases is a part of loan qualification) is estimating closing costs. As in loan qualification, duties exist to the buyer and/or seller to diligently and accurately estimate closing costs. The Company has a policy of strongly encouraging its agents to become educated through company and/or board/association training and education about estimating closing costs.
Do not use rules of thumb such as 2-5% of the purchase price. The spread of costs is too great in such estimates to be sufficiently accurate. For a first time buyer with little cash, a one-half percent difference in closing costs can mean the difference between purchasing and not purchasing. You can request estimated fees from the settlement or escrow company.
Do not use computerized closing cost estimating programs unless previously approved and authorized by the Company. The programs may or may not take local costs and variations into account. In addition, the programs which allow for local costs may require that the agent input the costs. If the agent desires to use such a program, management of the Company will approve its use and review the local costs being input.
Lender closing costs are generally reviewed in loan qualification procedures. One note of caution is in order: Some lenders unbundle services and charge for each service. These so-called “extra” costs are in addition to origination fees and points. Other charges may include “processing fee”, “underwriting fee”, “document preparation fee”, “courier fee”, etc., which can total $500.00 or more on a single closing.
Whether representing a buyer or a seller, a lender should be asked what her/his “extra” fees are at the time closing costs are estimated and not at time of commitment or closing.
7.7 Farming #
Farming is a regular activity of Associates at the Company. Farming in real estate activity is defined as target marketing a neighborhood or geographic area to prospect for business. Geographic farming and advertising by individual agents is encouraged. Any personal advertising or farming materials must be approved by the Broker or Manager. State license law and rules require that the salesperson include the Company name if the salesperson’s name is used. This policy covers all types of salesperson farming and advertising, including personal sign riders, business cards, car signs, homes magazine ads, classified ads, direct mail solicitations, specialty items (key chains, pens, pads, etc.), newsletters, farming materials, neighborhood newsletters, billboards, Internet advertising, etc. See Exhibit A for your Broker/Manager’s contact information. (HOW DOES AGENT SEND YOU ALL INTERNET ADV?). EXHIBIT?
Safety is an important consideration when conducting farming activities in the field. AvoidDo not “door-knocking” alone, always bring a buddy when possible. If dropping off marketing materials or door knocking, always respect all “Do Not Disturb” and “No Solicitation” signs. Do not knock on these doors or leave marketing materials at these properties. Do not put anything in the mailbox because that is illegal.
7.8 Listing Presentations #
All of your marketing efforts will be a waste if you don’t have an effective listing presentation. If you are a newer licensee, don’t be afraid to ask for help. Your Manager or an experienced Associate will be more than happy to help you develop an effective listing presentation. If you are an experienced Associate, it never hurts to review your presentation with other Associates. Remember: practice makes perfect.
For an effective presentation, here are a few guidelines to follow:
- Arrive on time.
- Prepare a “Comparative Market Analysis” for the Seller. Agents can use the Concierge Design Center to prepare a presentation.
- Always leave a copy of any signed contract with the seller or email them a copy.
- Be confident, positive and truthful. Don’t exaggerate or mislead.
7.9 Taking Listings #
In accordance with the REALTOR® Code of Ethics, the Company urges the use of an exclusive right to sell listing agreement unless it is contrary to the best interests of the owner. The Company recommends use of the “Exclusive Right to Sell Listing Agreement” form provided by the State Association of REALTORS®, AIR CRE library or a similar library. The Company also accepts exclusive agency listings of property in situations where the seller desires to reserve the right to sell the property on an unlimited or restrictive basis. Open listings may be accepted only with consent of a Manager or Broker of the Company. Net listings are not accepted. A net listing is one in which the owner agrees to let the agent keep any sale proceeds over a “net” price the owner wants for the property. Listings will be submitted to the multiple listing service in accordance with the rules and regulations of the MLS service unless an exclusion form has been completed.
State law requires that a compensation agreement be in writing and signed by the party to be charged in order to be enforceable. Again, unless approved in advance by the Broker, all listings will be “Exclusive Right and Authorization to Sell” listings. Any exclusive listing agreement (including an exclusive agency or an exclusive buyer-broker agreement) must include a definite, specified date of final and complete termination. The claiming of compensation under an exclusive agreement which does not contain a definite, specified termination date can lead to revocation or suspension of a real estate license.
All owners of a property must sign the listing agreement before you begin marketing the property, unless you have prior written consent from your manager. If someone signs on behalf of another, you must have written evidence of the authority to act, such as a power of attorney or letter of administration. If a party refuses to sign the listing agreement, notify the signing parties in writing that it is the Company’s policy not to market the property until all parties have signed the agreement.
Before taking the listing, search the MLS to determine whether or not the property is currently listed with another broker. It is Company policy to not take a new listing until the existing listing has expired. NOTE: With the approval of your Manager, and subject to Article 16 of NAR’s Code of Ethics, you may enter into a listing agreement prior to the listing expiring as long as it will not become effective until after the expiration of the prior agreement.
If the property is in escrow, continue marketing the property unless the seller agrees otherwise in writing. Make sure the listing does not expire before close of escrow. Get all modifications or extensions in writing.
All listings are taken in the name of the Company, which reserves the right to reassign the listing upon request of the seller, or if the listing has not been handled properly, or the Company deems it in the best interest of the client to do so. Any decision by the Company to reassign a listing is conclusive and you will have no right to a commission upon the sale unless agreed to by your Manager.
If you represent a buyer in a for-sale-by-owner (FSBO) and the buyer is to pay a commission, you must have a written agreement with the buyer to pay that commission, such as a buyer-broker agreement. If the FSBO seller is to pay the commission, you must have a written agreement with the seller, such as a single-party compensation agreement or a separate commission agreement.
7.10 Listing Procedures #
The Company accepts listings and seeks to build an inventory of available merchandise for sale to buyers of homes and investment real estate. It offers the merchandise directly to the public and by cooperating with other licensed agents.
Listings not only represent “the merchandise on the shelf” but also present a significant area of risk. Statistically, at least two-thirds of all claims filed against real estate agents involve claims of misrepresentation, fraud, and/or breach of fiduciary duty. It is at the listing level that many of these claims originate. As a listing company, it is imperative that Associates of the Company adhere to all listing policies to reduce the risk of later claims from oversight and exposure at the time of listing. The following policies apply to all listings taken by the Company.
7.11 Negotiating Commissions #
While commissions are negotiable, the Company reserves the right to set minimum acceptable commissions on listing agreements. Your Manager will advise you of the Company’s policy in this regard. You must get your Manager’s permission to accept a listing at a commission lower than the Company’s acceptable minimum commission.
7.12 Commission Charges #
The Company’s commission charges are as follows:
- Rates and prices of commission charged for services to the public.
- Charges to sellers for residential listings of 1-4 units. (4-6% of the purchase price)
- Charges to buyers for representation of 1-4 units. (2-3% of the purchase price)
- Charges to buyers or sellers for land representation. (4-10% of the purchase price)
- Charges to sellers for commercial listings. (2-6% of the purchase price)
- Charges to buyers for commercial representation. (1-3% of the purchase price)
- Charges to owners for leasing residential or commercial. (4-10% of the total lease)
- Charges to owners for property management. (4-10% of the monthly revenue)
- Charges to sellers of business opportunities. (4-10% of the purchase price)
- Charges to buyers of business opportunities. (2-5% of the purchase price)
- Charges to borrowers to originate or refinance mortgage loans. (.125%-2.00% of mortgage amount)
- Charges to investors to set up and manage syndication (4-6% of the value of the asset)
- Charges to clients for consulting. (Check with the Manager or Broker)
- Charges for any other services it renders. (Check with the Manager or Broker)
- Charges for any referral or relocation offered to other agents. (20-50% of commission earned)
- Compensation offered to buyer’s agents. (2-3% of the purchase price)
- Compensation offered to the Company’s licensees. (Per individual split with each Associate)
There are special circumstances under which the Company will agree to reduce charges or increase compensation offered to others. Any reductions/increases to the above charges need Manager or Broker approval in writing. Associates must receive the change in writing from their Manager or Broker before agreeing to any special charge, credit, or compensation offered to others.
7.13 Advance Fees #
The payment by a principal to the Company prior to the performance of services is known as an Advance Fee. All Advance Fee arrangements must be pre-approved by the Manager or Broker and in some cases by the State regulator. You may not propose or accept an Advance Fee without the express approval of your Manager or Broker, and the prior written approval of the Advance Fee arrangement and materials approval by the State regulator, if required.
7.14 Other Listing Terms #
Associates should request listings from sellers for the term of one year. When completing a listing agreement, Associates should fill in “180 days” as the time after the end of listing term in which a commission is owed if a buyer procured by the Company purchases the property. Any listing with a length more than one year needs a Manager or Broker’s approval. Associates may write a provision allowing the seller to cancel the agreement at any time if the seller is dissatisfied with the Associates performance. Company recommends that associates encourage sellersencouragerequire sellers to have property professionally cleaned prior to C.O.E.
7.15 Sellers Refusing to Sign Exclusive Right to Sell Listing Agreement #
In special circumstances when sellers refuse to sign an exclusive listing agreement, Associates may request the seller sign the Company document named Authorization to Advertise and Access Owner’s Property Agreement only with Manager or Broker approval. This agreement allows Associates to advertise, market, and access the owner’s property in an attempt to procure and represent a buyer. These agreements are commonly made on expired listings when owners had a poor experience with a previous listing agent, or on luxury properties that owners do not wish to expose to the general public, or homeowners who would be interested in selling if an offer was presented but do not wish to actively pursue selling the property through traditional means of listing the home for sale.
Under no circumstances should Associates claim to represent the seller or claim they have a “pocket listing”. Associates must disclose they do not represent the seller in all conversations regarding the property. Anytime an Associate uses the word “listing” that implies you already have a signed contract. Use “unlisted” property in your scripts rather than “pocket listing” or “private listing.”
Before advertising, showings, or any buyer is procured, the owner must sign the Addendum to the Authorization to Advertise and Access Owner’s Property Agreement which outlines the possibility for dual agency and the owner’s election of representation options in the event an offer is submitted. The property cannot be offered through the multiple listing service (MLS) and the seller must sign an exclusion form. If they do not wish for any advertising over the internet they must also sign an exclusion form. A Single Party Compensation Agreements (or similar agreement, as it varies per State) should be completed by Associates and signed by the seller before showing any buyer the property.
7.16 Disclosure of Material Facts #
The Company policy is to disclose all materials facts at all times. Associates must instruct their principals to do the same.
State real estate licensing law provides that a real estate agent may be disciplined for making any willful or negligent misrepresentation or any willful or negligent omission of material fact.
Examples of material facts include, but are not limited to, facts about the property itself (such as a structural defect or defective mechanical systems); facts relating directly to the property (such as a pending zoning change or planned highway construction in the immediate vicinity); and facts relating directly to the ability of the agent’s principal to complete the transaction (such as a pending foreclosure sale).
No matter whom the agent represents, these facts must be disclosed to both the agent’s principal and to third parties the agent deals with on the principal’s behalf. In addition, an agent has a duty to disclose to his principal any information that may affect the principal’s rights and interests or influence the principal’s decision in the transaction.
Under State Laws, the seller of real property, or the agent for the seller, must disclose accurate information of material fact telling whether historical evidence indicates that an event of natural origin is likely to affect the desirability and value of the property, even if the property is listed “as is.”
7.17 Property Disclosure Statements #
State laws require that a seller of real property consisting of one-to-four residential dwelling units deliver to prospective buyers a specified written disclosure statement concerning the condition of the property. The disclosure covers matters within the personal knowledge of the seller and the agent, and matters based on a reasonably diligent inspection of the property. This requirement extends to any transfer by sale, exchange, installment land sale contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements. These requirements also pertain to the resale of a manufactured home or a mobile home, even if classified as personal property, provided that the manufactured or mobile home is located on real property and is intended for use as a residence.
Exemptions vary by state and agents/loan officers are expected to be aware of their state’s policies. The following transfers, in general, are exempt (exact exemptions vary per State, see Exhibit K for unique exemptions):
- Transfers required to be preceded by delivery to the prospective transferee of a subdivision public report or where a public report is not required because the offering of subdivided land satisfies all the criteria in State licensing law.
- Transfer pursuant to a court order.
- Transfer to a mortgagee by a mortgagor who is in default; transfer by a foreclosure sale, or pursuant to a power of sale, after such default.
- Transfer by a fiduciary in the administration of a decedent’s estate, guardianship, conservatorship, or certain transfers from a trust.
- Transfer from one co-owner to another.
- Transfer to a spouse or to a person or persons in the lineal line of consanguinity.
- Transfer between spouses resulting from a judgment of dissolution of marriage, or legal separation, or from a property settlement agreement incidental to such a judgment.
- Transfer by the State Controller of unclaimed property.
- Transfer resulting from failure to pay taxes.
- Transfer to or from any governmental entity.
Duties of Listing Agents
- Provide the seller with a copy of the required disclosures to fill out.
- Explain to the seller at the time of listing an agent must disclose to prospective buyers any material fact regarding a listed property which the agent knows or reasonably should know, even if the seller chooses not to disclose the fact or to make no representation about it.
- Assist the seller in assessing the property.
- Assist the seller with proper completion of the forms.
- Assist in delivering the completed disclosures to prospective buyers.
- Monitor the property and circumstances to help the seller ensure the continuing accuracy of the disclosures.
- Be sure the buyer signs the disclosures and returns copies to the seller.
Duties of Buyer Agents
- Take affirmative steps, if necessary, to obtain completed disclosures and deliver it to the buyer prior to the preparation of any offer or within specified number of days from acceptance (varies per State), unless otherwise agreed in the initial purchase agreement.
- Be sure the buyer signs the disclosures and returns copies to the seller or listing agent.
- Assist the buyer in assessing the disclosures regarding the property and advising the buyer to have inspections by experts where appropriate.
In completing the disclosures, the seller MUST fill in the form. The Company’s agent MAY NOT complete the form on behalf of a seller.
A seller may, according to law, elect not to make any representations as to the characteristics and condition of the property by checking the appropriate boxes on the disclosures. If a seller has questions about whether the seller should check one or more boxes on the disclosures, the listing agent should inform the seller that it is not appropriate for a real estate agent to give legal advice and direct the seller to contact an attorney.
Some sellers may refuse to sign disclosures. The Company WILL NOT accept a listing for which a seller refuses to complete disclosures unless the State does not require a disclosure for that property type, the listing is an estate sale, bank owned foreclosure, or any other entity which is exempt from a transfer statement. If a seller refuses to sign disclosures, the listing agent should advise the seller that if a prospective buyer does not receive disclosures prior to making an offer on the seller’s property, the buyer may cancel any resulting contract prior to whichever of the following events occurs first: (1) the end of the third calendar day following receipt of the disclosures; (2) the end of the seventh calendar day following the date the contract was made; or (3) the end of the buyer’s contingency period.
If a material inaccuracy in the disclosures is discovered, or the disclosures are rendered inaccurate in a material way by the occurrence of some event or circumstance, State law requires the owner to correct the inaccuracy and deliver a corrected disclosure to the buyer. Therefore, a listing agent should be careful to keep the disclosures current. If the information becomes inaccurate because the property’s condition has changed, a seller (and agent) could have liability for allowing known inaccurate information to be given to the buyer.
An agent may not rely on a statement of the seller if the agent knows or reasonably should know that the statement is inaccurate. An agent, therefore, may not ignore the representations on the disclosures just because the seller completed it. If an agent, in his/her reasonable judgment and expertise, suspects that a disclosure statement is not accurate, the agent should seek further information from the seller. An example might be a seller who states that there has been no water in a basement in which there are obvious water stains and cracks. An agent’s best course is to seek further information from the seller as to the exact nature of their statements and then accurately convey this information to any prospective buyer, in accordance with the obligation to disclose material facts.
Accuracy of Listing Information
Several “traps” of liability exist in taking a listing, which are covered below. Company agents should take careful note of these hazard areas and be particularly diligent in handling these issues.
- Room Counts: The Company agents must be careful to accurately represent the number of rooms, bedrooms and bathrooms in a property. Generally, questions of whether an area constitutes a room, bedroom or bathroom are resolved by determining whether an appraiser would count the area as such. For example, basement rooms that are below grade are not generally considered rooms, bedrooms, or bathrooms for appraisal purposes. Another example is that a room normally must have a closet to be considered a bedroom. Also, “walk-through” rooms are not usually considered separate bedrooms. These ambiguous areas can be denoted by a symbol such as a “+” sign after the room count (e.g. 8+ rooms, 4+ bedrooms), or highlighted in remarks for the property, or other descriptive information.
- Square Footage: Real estate agents are generally expected to be able to accurately calculate the square footage of most dwellings. When reporting square footage, whether to a party to a real estate transaction, another real estate agent, or others, a real estate agent is expected to provide accurate square footage information that was compiled using the Company’s measurement standards. While an agent is expected to use reasonable skill, care, and diligence when calculating square footage, it should be noted that the Company does not expect absolute perfection. Because all properties are unique and no guidelines can anticipate every possibility, minor discrepancies in deriving square footage are not considered to constitute negligence on the part of the agent. Minor variations in tape readings and small differences in rounding off or conversion from inches to decimals, when multiplied over distances, will cause reasonable discrepancies between two competent measurements of the same dwelling. In addition to differences due to minor variations in measurement and calculation, discrepancies between measurements may also be attributed to reasonable differences in interpretation. For instance, two agents might reasonably differ about whether an addition to a dwelling is sufficiently finished to be included within the measured living area. Differences which are based upon an agent’s thoughtful judgment, reasonably founded on these or other similar guidelines, will not be considered by the Company to constitute error on the agent’s part. Deviations in calculated square footage of less than five percent will seldom be cause for concern.
As a general rule, the most reliable way for an agent to obtain accurate square footage data is by personally measuring the dwelling unit and calculating the square footage. It is especially recommended that listing agents use this approach for dwellings that are particularly unusual or complex in their design.
As an alternative to personally measuring a dwelling and calculating its square footage, an agent may rely on the square footage reported by other persons when it is reasonable under the circumstances to do so. Generally speaking, an agent working with a buyer (either as a buyer’s agent or as a seller’s agent) may rely on the listing agent’s square footage representations except in those unusual instances when there is an error in the reported square footage that should be obvious to a reasonably prudent agent. For example, a buyer’s agent would not be expected to notice that a house advertised as containing 2200 square feet of living area in fact contained only 2000 square feet. On the other hand, that same agent under most circumstances would be expected to realize that a house described as containing 3200 square feet really contained only 2300 square feet of living area. If there is such a “red flag” regarding the reported square footage, the agent working with the buyer should promptly point out the suspected error to the buyer and the listing agent. The listing agent should then verify the square footage and correct any error in the information reported.
It is also appropriate for an agent to rely upon measurements and calculations performed by other professionals with greater expertise in determining square footage. A new agent who may be unsure of his or her own calculations should seek guidance from a more experienced agent. As the new agent gains experience and confidence, he or she will become less reliant on the assistance of others. In order to ensure accuracy of the square footage they report, even experienced agents may wish to rely upon a competent state-licensed or state-certified appraiser or another agent with greater expertise in determining square footage. For example, an agent might be confronted with an unusual measurement problem or a dwelling of complex design. When an agent relies upon measurements and calculations personally performed by a competent appraiser or a more expert agent, the appraiser or agent must use comparable standards and the square footage reported must be specifically determined in connection with the current transaction. An agent who relies on another’s measurement would still be expected to recognize an obvious error in the reported square footage and to alert any interested parties. The agent must always disclose the source of the square footage and incorporate the following into the MLS and the seller’s disclosures: “Buyer to verify square footage before the close of escrow.”
Some sources of square footage information are by their very nature unreliable. For example, an agent should not solely rely on square footage information determined by the property owner or included in property tax records. An agent should also not rely on square footage information included in a listing, appraisal report, or survey prepared in connection with an earlier transaction. If you have the experience to measure, please do so.
When calculating square footage, agents of the Company should carefully follow these guidelines. When inputting the property in the MLS Associates should use the following text in the description “Buyer to verify sq.ft prior to the close of escrow”. This should also be in the transfer disclosure agreement.
- Square Footage: Real estate agents are generally expected to be able to accurately calculate the square footage of most dwellings. When reporting square footage, whether to a party to a real estate transaction, another real estate agent, or others, a real estate agent is expected to provide accurate square footage information that was compiled using the Company’s measurement standards. While an agent is expected to use reasonable skill, care, and diligence when calculating square footage, it should be noted that the Company does not expect absolute perfection. Because all properties are unique and no guidelines can anticipate every possibility, minor discrepancies in deriving square footage are not considered to constitute negligence on the part of the agent. Minor variations in tape readings and small differences in rounding off or conversion from inches to decimals, when multiplied over distances, will cause reasonable discrepancies between two competent measurements of the same dwelling. In addition to differences due to minor variations in measurement and calculation, discrepancies between measurements may also be attributed to reasonable differences in interpretation. For instance, two agents might reasonably differ about whether an addition to a dwelling is sufficiently finished to be included within the measured living area. Differences which are based upon an agent’s thoughtful judgment, reasonably founded on these or other similar guidelines, will not be considered by the Company to constitute error on the agent’s part. Deviations in calculated square footage of less than five percent will seldom be cause for concern.
As a general rule, the most reliable way for an agent to obtain accurate square footage data is by personally measuring the dwelling unit and calculating the square footage. It is especially recommended that listing agents use this approach for dwellings that are not particularly unusual or complex in their design.
As an alternative to personally measuring a dwelling and calculating its square footage, an agent may rely on the square footage reported by other persons when it is reasonable under the circumstances to do so. Generally speaking, an agent working with a buyer (either as a buyer’s agent or as a seller’s agent) may rely on the listing agent’s square footage representations except in those unusual instances when there is an error in the reported square footage that should be obvious to a reasonably prudent agent. For example, a buyer’s agent would not be expected to notice that a house advertised as containing 2200 square feet of living area in fact contained only 2000 square feet. On the other hand, that same agent under most circumstances would be expected to realize that a house described as containing 3200 square feet really contained only 2300 square feet of living area. If there is such a “red flag” regarding the reported square footage, the agent working with the buyer should promptly point out the suspected error to the buyer and the listing agent. The listing agent should then verify the square footage and correct any error in the information reported.
It is also appropriate for an agent to rely upon measurements and calculations performed by other professionals with greater expertise in determining square footage. A new agent who may be unsure of his or her own calculations should seek guidance from a more experienced agent. As the new agent gains experience and confidence, he or she will become less reliant on the assistance of others. In order to ensure accuracy of the square footage they report, even experienced agents may wish to rely upon a competent state-licensed or state-certified appraiser or another agent with greater expertise in determining square footage. For example, an agent might be confronted with an unusual measurement problem or a dwelling of complex design. When an agent relies upon measurements and calculations personally performed by a competent appraiser or a more expert agent, the appraiser or agent must use comparable standards and the square footage reported must be specifically determined in connection with the current transaction. An agent who relies on another’s measurement would still be expected to recognize an obvious error in the reported square footage and to alert any interested parties. The agent must always disclose the source of the square footage and incorporate the following into the MLS and the seller’s disclosures: “Buyer to verify square footage before the close of escrow.”
Some sources of square footage information are by their very nature unreliable. For example, an agent should not solely rely on square footage information determined by the property owner or included in property tax records. An agent should also not rely on square footage information included in a listing, appraisal report, or survey prepared in connection with an earlier transaction.
When calculating square footage, agents of the Company should carefully follow these guidelines. When inputting the property in the MLS Associates should use the following text in the description “Buyer to verify sq.ft prior to the close of escrow”. This should also be in the agent’s disclosure .
- Lot Size: Lot size and acreage should only be determined from an accurate survey. The agent should NOT attempt to measure lot size on her/his own.
- Taxes: Taxes should be determined from county tax records or the owner’s tax bill. The agent should not rely on the statements of the owner as to tax amounts.
- Modernization Information: Good selling features about a property are often the updates or upgrades made by the owner. In order to accurately advertise these items, the Company requires that the owner verify any information given to us before it can be used in any promotional material on the listing.
Items such as “new” roof, “new” air conditioner, “new” furnace, “new” bathroom, “new” kitchen, etc. are misnomers because of the difficulty in defining what “new” means. Substantiation of the information means the owner must supply the Company with receipts, canceled checks, or other proof of payment of upgraded or rehabbed items. Once provided, the Company will accurately advertise and promote these good selling features with language like “New roof, 1990″,”New furnace, 1989″,”Kitchen remodeled, 1991.”
If it is not possible to substantiate modernized features, they can be advertised or promoted as “Newer” or “Recently”, as in “Newer furnace” or “Recently remodeled bathroom”.
Signatures
The Company desires that listing agreements be enforceable in every possible situation to ensure that the Company and agent will be paid under the terms of the listing agreement. Because of these factors, agents must secure listing agreements with the proper signatures before the listing will be promoted or advertised in any way. Agents should be especially aware of the several situations listed below.
- Spousal Signatures: A spouse must ALWAYS sign a listing agreement unless a waiver of marital rights given by the non-signing spouse exists (e.g., separation agreement, prenuptial agreement), a copy of the waiver has been given to the Company and legal counsel or Broker for the Company has confirmed that the agreement constitutes a valid waiver of the non-signing spouse’s rights.
Most often this situation arises when the property is titled only in the “selling” spouse’s name and the “non-selling” spouse claims that he or she has no interest in the property. Typical situations are a widowed person who has remarried or a divorced person who has remarried. Exceptions exist, in states like California, where the spouse who is not on the title ALWAYS has a marital interest and MUST sign the listing agreement unless one of the exceptions note. Marriage laws vary per state. Please contact the Company Compliance Director with any questions.
- Property in Estate: When property is in an estate, ALL heirs AND spouses must sign. If a Personal Representative (Executor) has been named, it is possible that the Personal Representative has authority to sell the property. The agent must secure a copy of the court decree or specific section of the will which empowers the Personal Representative to sell property. The power of sale granted the Personal Representative by a will may not be acceptable until after a certain period of time has passed following the date that the Personal Representative has been appointed. In this situation, management for the Company will consult with legal counsel to determine if the power to sell in the will is acceptable.
- Trustees: If a property is held by a trust, the trustee will normally be empowered to sell. However, the agent must secure a copy of the part of the trust which empowers the trustee to sell. Some trusts require the signatures of more than one trustee to sell as in the case of an individual and corporate trustee (bank). In this circumstance, the trustee’s spouse does not sign the listing agreement because the trustee is acting in a representative capacity.
- Seller Incapacitated: If a seller is not mentally competent to sell, a guardian must be appointed by the court and the guardian must obtain a court order to sell the property. Until such time, the property cannot be sold even if a child, sister, niece, nephew, etc. is also on the title. If the subject property is also jointly owned in this fashion, the spouse of the “second signer” (child, sister, niece, nephew, etc.) must also sign the listing contract. It is possible that a properly drawn Durable Power of Attorney may provide a means to sell this type of property. However, before relying on the Durable Power of Attorney, Company management will consult with legal counsel to determine whether the existing Durable Power of Attorney is acceptable. See also the paragraph on Powers of Attorney, below.
- Divorces: A person is NOT legally divorced until a court orders. A person “in the process of divorce” cannot sign the listing agreement alone. The spouse must also sign, regardless of whether the spouse is living on the premises or the couple has a “legal separation,” unless a valid waiver of marital rights exists (see section on Spousal Signatures above). Once divorced, the person may sign alone, however, if the county records continue to show the property in both names, the agent must secure a copy of that part of the divorce decree which awards the property to the signing spouse for the Company files. Marriage laws vary per state. Please contact the Company Compliance Director with any questions.
- Power-of-Attorney: A Power-of-Attorney authorizing the sale of real estate is acceptable for signature on a listing contract. However, not all powers-of-attorney authorize the sale of real estate. A copy of the recorded Power-of-Attorney authorizing the sale of real estate must be secured for the files of the Company.
Seller Net Proceeds Calculations
It is the policy of the Company to calculate estimated net proceeds for sellers as often as appropriate. The first estimate should be given on the listing call or as soon as possible after listing the property. Even though some information may not be available, such as exact loan balances, or prepayment penalties, the agent should use all existing information to prepare as accurate an estimate as possible and note any missing information.
When information becomes available, estimated net proceeds should be recalculated. This is particularly appropriate when an offer is presented and when each new offer or counteroffer is received.
There are many reasons for using seller net calculations. First, it is an important service to a client. Secondly, it is important for the Company to know whether it is likely that there are sufficient proceeds to pay off the indebtedness on the property and the real estate commission. Finally, the Company must know whether the seller of the property can deliver marketable title. If the indebtedness exceeds the listed price, immediate discussions must occur with the seller and the lenders to determine whether the property can be sold with clear title given the level of indebtedness.
It is also important to note that as a possible material limitation on the client’s ability to complete the transaction; this condition may be considered a material fact to be disclosed to the buyer.
Estimated Seller Net Proceeds Calculation forms are available from the settlement or escrow company and many times through your local MLS.
Lock Box Procedures
The Company, as part of the local Board of REALTORS® common lock box system, encourages the use of lock boxes on all listings as a safe, secure, and efficient tool in marketing property. Specific permission from the owner must be obtained on each listing before installing a lock box.
Open House Procedures
The “how-to” of holding open houses is covered below under the Conducting Open Houses section. The Company must also maintain a policy that adequately informs owners of their responsibilities in consenting to open houses. Agents must strongly recommend to owners that they take common sense precautions with any valuables in the house during the time of the open house. This includes removal of all jewelry boxes, collectibles of value, (sentimental or dollar value), small audio or video equipment, or other items which may be of value. Owners should also be informed that their homeowner’s insurance company is the responsible party for any losses on an open house.
As in all other areas, an agent may not act carelessly or recklessly. If for no other reason, an agent must be diligent in conducting an open house to maintain good business relations and rapport with the owner. Agents /Loan Officers of the Company are specifically prohibited from using listed properties for personal use, including but not limited to meetings of any sort that are not related directly to the sale of the client’s property.
Reviewing Documents – Internal Verification Procedures
The Company maintains a system of checking and verifying both listing contracts and documents and sale contracts and documents for accuracy, enforceability, and compliance with state rules. Within 24 hours of completing any new listing or purchase contracts, the agent will upload the documents into Skyslope Brokermint so that the Reviewer can review the executed contract. Each agent is expected to cooperate fully and promptly with any requests for verification, further information, or correction of any oversights in the documents.
For other related policies, see the section on Risk Reduction Policies.
7.18 Conducting Open Houses #
Open houses are a great way to expose your listing for sale and to meet prospective buyers. Plan your open houses in advance and be sure they are advertised. In order to assure a successful open house, follow these guidelines:
- The Company strongly suggests that you conduct your open house with another Company Associate. Holding an open house with two representatives provides several benefits including: being able to knock on more neighbors’ doors, opportunities to speak with prospective buyers longer, reducing security risks and being able to split up and show comparable properties right away if a ready and willing buyer arrives while keeping the house open.
- Prepare and take sufficient property flyers and information about you and the Company.
- Prepare and take a list of comparable sales and properties for sale in the immediate area of the open house.
- Suggest that the sellers not be present and that they lock away all valuables that could be targets of theft.
- Place your A-Frame open house signs in strategic, but permissible, locations.
- Open the house, turn on the lights, and make the house look fresh and inviting.
- Have a sign-in sheet.
- Greet visitors in a friendly manner.
- Be aware of your personal safety. Let someone know where you are and have a plan if a visitor starts to make you feel uncomfortable or threatened.
- Accompany the visitors through the property, especially in furnished properties.
- When the open house is over, close up the home, making sure that all doors and windows are locked.
7.19 Showing Properties #
Whenever possible, preview a property before showing it to prospective buyers. If you are familiar with the property you will be more effective when showing it to your client. Also, you may find that despite contrary representations, the property really is not suitable after all. Your time and your client’s and seller’s time are valuable, don’t waste it.
- Whenever possible, call the listing agent to alert the seller before showing.
- Give the seller reasonable time to make the property ready for you and your client.
- Listing agents should give the seller an estimated time frame within which you expect to arrive. Be prompt. If you will be considerably late, call the seller.
- If you have not heard from the seller before arriving, or if you are using the lockbox, go to the door first without your client.
- If the seller is home, explain the situation and ask for access. Remember, be respectful.
- When using a lockbox, always ring the doorbell and/or knock loudly several times and allow time to respond.
- Enter the property first and verify no one is there.
- Open curtains and turn on lights as necessary.
- Allow sufficient time for your clients to view each room and the property. Be mindful to look for any potential “red flags” about the property. (Disclosure)
- Do not leave your clients unattended in or on the property. You don’t want to be blamed if any items are missing from the property later.
- When you are finished, leave your card inside the property in a conspicuous place, and return the property to its original state (turn off appropriate lights, reset any alarms, and lock the doors).
- If for some reason you don’t show the property, call the listing agent as soon as possible to cancel.
7.20 Property Insurance Issues #
Real estate transactions can be affected by the lack of availability and/or unaffordability of insurance to cover the property that is being bought or sold. In the past, securing property insurance was considered routine. It was not unusual to call the insurance agent a few days or a week before closing and have the insurance issued with little more than that phone call.
Today, the property insurance environment has dramatically changed and continues to do so. Buyers should address the property insurance issues seriously and early in the transaction process. Here are some important tips for buyers to consider about this new insurance environment:
- Don’t wait to secure insurance. As soon as the offer is accepted, have the buyer call their insurance agent and arrange for coverage. If the buyer is shopping around, the buyer should try to pick an insurance company/agent before writing an offer. Then, when the offer is accepted, they will know who to call. If the buyer has not picked an insurance company or agent by the time the offer is accepted, have them do it immediately after the offer is accepted.
- Consider using an “insurability” contingency in the offer.
- Consider buying an “Insurance Score” report. Similar to a “Credit Score,” the buyer’s “Insurance Score” is used by many insurance companies in deciding whether to extend insurance coverage. The components of the insurance score may vary from company to company, but usually include a composite of the buyer’s credit score and their past record of filing insurance claims on other properties they have owned or rented. One company offering Insurance Score Reports is Choice Trust. Their web address is www.choicetrust.com. A Choice Trust Insurance Score Report costs about $15.
- Consider obtaining a “Claims Loss History Report” CLUE” Report for the property the buyer currently owns. “CLUE” means “Comprehensive Loss Underwriting Exchange.” CLUE is a Insurance companies have a database of insurance claims on properties throughout the United States. Insurance companies contribute claims information about properties they have insured and thus a record of claims as to each property that has been insured by a contributing company has been built over the past 10 to 15 years. Generally, claims over the past 5 years are available through the CLUE databaseClaims Loss History Report. Similar to insurance scores and buyers, CLUE Reports are used by insurance companies to decide whether to insure a property. If a Claims Loss History Report CLUE Report reveals that a property has had “too many” past claims or certain types of claims (such as water damage), many insurance companies will not insure the property. Unfortunately, there is no standard among insurance companies about what are “too many” claims to result in a denial of coverage. CLUE Reports can be obtained at the Choice Trust website, www.choicetrust.com. A CLUE Report costs about $15. Claims Loss History Reports can be requested from the current insurance company. The best time to get this report a CLUE Report for the buyer’s own property is before they put it on the market and before they write an offer to buy a new property. If the buyer’s current property revealsproperty’s CLUE Report reveals significant insurability issues, this may affect their buying decision.
- Consider asking the seller of the property that the buyer is interested in to provide a Claims Loss History Report buy a CLUE Report for their property when before writing an offer to purchase. Only the owner of the property can order a CLUE Report.
- When buying insurance, ask the insurance agent if the binder or policy can be canceled by the insurance company after it has been issued. Some binders and policies give the insurance company up to 60 days to cancel the policy for any reason, including information revealed in aClaims Loss History Report CLUE Report. This 60 day period may extend after the closing date. Cancellation of insurance after closing could cause serious problems with the lender.
- Even if property insurance is available, it may be significantly more expensive than in the past. Property insurance premiums have risen substantially overall in recent years. Also, a property that has an unfavorable Claims Loss History Report CLUE Report may be insurable, but only at a significantly higher premium. Buyers with low insurance scores may also be required to pay higher premiums to secure property insurance.
7.21 Drafting and Negotiating Contracts #
- When preparing an offer to purchase on a purchase agreement form, or completing an addendum or counter-offer form, make sure that the:
- All blank lines are filled or have a line placed through them in states that require a strikethrough.
- Any inserted written language can be clearly understood by someone who is not familiar with the discussions you may have had with your client. Do not draft contractual language on your client’s behalf.
- Review this document in light of all prior offer terms, addenda and/or counteroffers to make sure that there are no ambiguities or conflicts between the various terms.
- Review the document to be sure it reflects your client’s wishes prior to asking them to sign.
- Remember, as a listing agent, you must present all offers to the seller even if the property is in escrow, unless the seller has given you written instructions to the contrary. Upon receiving the offer, review it thoroughly for completeness, accuracy, and clarity. Pay close attention to time limits set out in the offer, ESPECIALLY the time within which the seller must respond. Make an appointment as soon as possible to present the offer.
- As with all contracts, you must obtain all parties’ signatures. If a party signs on behalf of another, you must have evidence of that person’s authority to do so in writing. If you must present an offer missing a signature, you must disclose this fact to the seller or listing agent. Be sure to condition the offer on obtaining any missing signature(s).
- If your clients receive a counter-offer, be sure the terms are clear and complete. Be sure to review it against the original offer to purchase and all previous counter-offers. Act expeditiously to present the counter-offer for consideration, signature, and timely delivery to the cooperating agent.
- You may never represent two or more competing buyers offering to purchase the same property at the same time absent your Manager’s prior written consent.
- It is Company policy that, if you have a listing and there are multiple offers, you may represent both buyer and seller in the contract negotiations (if permitted in that State and buyers and seller consent in writing). If not, you may be required to utilize a Designated Agency (if allowed in that State) and you and the Manager must choose to represent only the seller or the buyer during the pre-contract negotiations. A Manager or another salesperson will represent either the buyer or seller who is not represented by you during contract negotiations. Licensee is required to know and abide by the types of agencies that are allowed in their state. See Exhibit J for the different types of agency allowed in each State.
- Even if an Associate may be a qualified professional in the financial or legal fields, all Associates are strictly prohibited from giving any tax or legal advice or legal opinions. If questions of a legal or tax nature arise, the Associate should advise the client to consult with his or her own tax advisors or legal consultants.
7.22 Purchase Sale Contract Policy #
- Sale Contract Completion
As a member of the State and Local Association of REALTORS®, the Company uses the standard contract forms available through State and Local Associations (including Standard Forms such as “Purchase and Sale Agreements”, or an “Offer to Purchase and Receipt for Deposit,” or other similar forms that vary per State and all addenda thereto). Article 13 of the REALTOR® Code of Ethics governs an agent’s conduct in this respect.
The Company adheres strictly to these provisions. Accordingly, sample contracts and forms are available to all agents of the Company on the Google drive. Agents must use the approved language and fill-ins included in the sample contract. If a situation is not covered, an agent is not authorized to alter a form or add language without prior approval from Company management. Company management maintains a file of pre-approved clauses for situations not covered by the forms.
Likewise, any amendments or supplements to sale contracts must be written on the standard addenda available from the Local and State Association library forms. These forms provide for the most typical amendments and changes to sale contracts. If an agent requires unusual language, he or she must consult Company management who will consult with legal counsel to determine the appropriate language to be used.
Licensees may not draft offers, sales contracts, options, leases, promissory notes, deeds, deeds of trust or other legal instruments by which the rights of others are secured. However, licensees may complete preprinted offers, option contracts, sales contracts, and lease forms. If a customer or client asks us to prepare any other type of document, the agent should ask the customer or client to seek the advice of her/his own legal counsel.
- Sale Contract Terms
Several areas of contract terms are traps of risk for the unsuspecting agent. The Company maintains policies regarding these areas to reduce risk and heighten awareness. These are covered below.
- Earnest Money: Several concerns regarding earnest money are involved. First is the “how much” issue. The Company cannot maintain a policy that requires any specific amount of earnest money as the Company and agent are not parties to the contract. However, if the Company represents the seller, the advice to the seller will be that sufficient earnest money is very important in that it shows how “earnest” a buyer is. The Company has seen many cases where low earnest money has resulted in a buyer simply defaulting on the contract and forfeiting the low amount of earnest money, banking on the fact that it is unlikely that a seller would sue. It has also seen many cases where sufficient earnest money has kept an anxious buyer in a contract to closing because of the prospect of losing a substantial amount of the earnest money. The timing that the earnest money needs to be deposited is also of concern.
If the Company represents the buyer, the classic approach to buyer representation might suggest recommending the lowest possible earnest money in every case. However, the agent is cautioned that this may not serve the best interests of the buyer in all cases. For example, because earnest money indicates how “earnest” a buyer is, or how “strong” an offer is, a buyer may be put at a competitive disadvantage if low earnest money is offered in a situation where the buyer’s offer is competing with one or more other offers. As in all other situations, if the Company represents the buyer, its job is to give the buyer the best of the Agent’s and Company’s expertise, advice, and talent which may include advice which on first impression does not follow the “typical” rules.
The policy of the Company is that only wires, checks, or money orders are accepted as earnest money without further permission from the seller. The Company’s policy regarding this rule is that items such as postdated checks are not acceptable. Although the Company may have a trust fund bank account in certain States, the Company does not accept earnest deposit funds unless it is mandated by the State. All funds should be deposited directly to escrow by the client. See Exhibit D for States in which the Company maintains a trust fund bank account.
A corollary issue occasionally arises regarding acceptance of a credit card or line of credit check (Visa, MasterCard, American Express, home equity loan). The Company takes a conservative position regarding these instruments and strongly discourages their use. The primary reason for this policy regards the difficulty in determining whether this instrument has “cleared”. There is no easy way to determine whether the line of credit has been exhausted or overdrawn and upon presentation, will be rejected. In addition, a lender may require that such balances be paid off before loan approval or closing. A credit card or line of credit check should be accepted only with the written permission of the seller.
- Inspection Contingencies: The intended purpose of these contingencies is to give the buyer the right to terminate the contract in the event inspections reveal extensive, unforeseen damage to the property, even though the seller may be willing to repair the damage. The contingency is not intended to give the buyer an “out” in cases where damage to the property falls within the range of what might be considered normal for a property of the type under contract.
If the company represents the buyer, the classic approach to buyer representation might suggest recommending the highest possible number amount of days in the contingency period in every case. However, the agent is cautioned that this may not serve the best interests of the buyer in all cases. For example, a buyer may be put at a competitive disadvantage if a high number amount of days is offered in a situation when the buyer’s offer is competing with one or more other offers. As in all other situations, if the Company represents the buyer, its job is to give the buyer the best of the Agent’s and Company’s expertise, advice, and talent which may include advice which on first impression does not follow the “typical” rules.
- Inclusions and Exclusions: The contract is the primary method to determine what is being sold with the property. Do not rely on the disclosures or listing data to establish what is included in or excluded from a contract.
This area is of great importance for risk reduction purposes. Personal property inclusions and exclusions cause a great number of the disputes in a sale contract and can be expensive for an unwary agent. As a general rule, try to keep the contract free from personal property matters. Not only do these matters “clutter” the real estate aspects of the transaction, but they may affect the maximum loan amount depending on the loan-to-value ratio. Be aware of the potential hazards in this area and act with caution, making sure inclusions and exclusions are clear in the contract. Agents/Loan Officers are cautioned not to use simple statements in the address section of the contracts stating “per MLS sheet” or “per MLS #XXXX.” These create confusion as to what MLS sheet and when the MLS sheet was run.
- “As-Is” Contracts: Most properties nationwide are now sold “as-is.” These listings often include text such as “offered in as-is condition”. This term is unclear, at best, and therefore should be clarified so that the parties have a clearer understanding of the intentions of the other. Generally speaking, there are three approaches for parties who wish to include an “as is” term in a MLS posting or contract. Those three approaches are as follows:
- The property is sold exactly as seen. Any building, mechanical, or structural inspection is waived by the buyer. No repairs or corrections will be made by the seller.
- While the property is being sold “as-is”, the buyer is entitled to a building, mechanical, or structural inspection to determine the condition of the property and will have the right to cancel the contract if the seller refuses to make any necessary repairs.
- While the contract states the property is being sold “as-is”, the buyer is entitled to all rights allowed in the building, mechanical, or structural inspection clauses of the contract, including the right to ask for repairs. Typically, this approach may be selected if the seller’s statement of “as-is” is simply intended to convey the seller’s position that it is unlikely the seller will repair any requested items.
If a customer or client asks us to include an “as is” term in a contract, the agent should ask the customer or client to seek the advice of his/her own legal counsel. In addition, an “as-is” sale does not relieve the licensee of the obligation to disclose all material facts of which he/she has knowledge or which are readily available to him/her relating to the condition of the property.
- Sale Contract Negotiation
The techniques and principles of sale contract negotiation (the “how-to”) are covered in the Company’s and Board’s training programs. Each agent is encouraged to take full advantage of these resources to improve her/his skill in this area which are vital to success in this business.
Aside from sale contract negotiation techniques, the Company maintains policies that are directed to the legal and ethical aspects of contract negotiation. These are listed below.
- Presentation of Offers
In accordance with the Code of Ethics and State Real Estate Commission Rules, the Company requires its agents to present all offers to the seller until closing and all counter offers to the buyer, regardless of how many offers received or the order in which the offers were received. The Company urges any agent / loan officer involved in a multiple offer situation to contact management to review the proper procedures.
The Company will always be guided by lawful instructions of the client in any multiple offer situations. While the Company believes that these procedures protect the client, the client may choose to give the Company other lawful instructions. The agent should discuss with the client, whether seller or buyer, the customary procedures for handling multiple offers so that the client may determine whether the client wishes to give the agent or Company different instructions.
Standard of Practice 1-15 of the National Association of REALTORS® Code of Ethics requires that the listing agent/loan officer, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, divulge the existence of offers on the property. In addition, Standard of Practice 1-15 requires that, when disclosure is authorized, the listing agent has an affirmative obligation, if asked, to disclose who is representing the parties of any offer presented, i.e. whether the offer(s) is represented by the listing agent, another agent with the listing agent’s brokerage or another brokerage.
In the event of multiple offers on one property, the Company follows a policy, with the seller’s approval, of notifying all offerors that his/her offer is in competition with other offers as well as giving the opportunity to change the offer. The notification shall take place only after multiple offers actually exist and not when the listing agent may have knowledge of other offers being written or possibly being written.
The Company policy is to encourage buyers to “Submit your highest and best offer.” The listing agent is not advised tonotadvised permitted to reveal any terms of the offer to any other party including expiration time of the offer, price, closing dates, earnest money amounts, financing types, amounts, dates, or other terms unless instructed prohibited in writing by the seller(s). all parties. Although it is not typically the best practice to reveal information on other offers. This may vary by state, the listing agent is required to know their states guidelines on any restrictions and protocol.
If another agent, whether from the Company, or another company, asks the listing agent to “let me know if another offer comes in”, the Company has a general policy of not acknowledging such requests. If other offers come in, the agent should advise the client that inquiries of this nature have been made and ask the client whether those requests should be followed up.
The Company policy is to give sellers the option to accept Ddual Aagency (if permitted in that particular State), Ssingle Aagency, or Ddesignated Aagency before any listing is taken or offers are received. If the seller has no objections to dual agency, and if multiple offers exist and the listing agent has written one of those offers, the policy of the Company in such a circumstance is that the listing agent must may present all the offers.
If the seller has opted for a designated agency and a customer of the listing agent asks to write an offer before or after other offers have been submitted, the policy of the Company is that the listing agent must ask the sales Manager, Broker, or other Company agent to write the offer for the listing agent’s customer.
If the seller has opted for a Ssingle Aagency and a customer of the listing agent asks to write an offer, the policy of the Company is that the listing agent refuses to write an offer and let the customer know they will need to obtain their own representation. If the seller has opted for a Ssingle Aagency (or that particular State does not accept Ddual Aagency) the listing agent may only represent the seller.
In general, whenever the listing agent has knowledge of an offer presented, or could use information he or she has to the detriment of one of the competing parties, the Company strongly recommends that a third party agent, such as a Manager, Broker, or other agent, become involved to assist in the negotiations.
A final issue regarding presentation of offers regards whether an oral offer must be presented. Common law agency principles dictate that all material and relevant information of which the agent has knowledge should be given to the client. In addition, Standard of Practice 1-7 of the REALTOR® Code of Ethics speaks of submitting all offers to the seller.
In accordance with agency obligations of disclosure and loyalty and in the spirit of the National Association of REALTORS® Code of Ethics, the Company has a policy of giving the seller client all material and relevant information of which the agent has knowledge. In accordance with this policy, if a customer insists on an oral offer, the Company believes that the seller is entitled to that information.
The Company recognizes that such an oral offer alone is almost certainly unenforceable under most State laws. However, it is prudent to tell the seller what the agent knows, that is, an oral offer was made by this party and it is unknown whether the party will ultimately be willing to commit the offer to writing. At this point, a seller may choose to make a written offer to sell and thereby initiate the contract process him/herself.
Additional resources on this topic are available on www.realtor.org, Law and Policy. The NAR Professional Standards Committee has published a guide for agents and brochure for buyers and sellers on “Presenting and Negotiating Multiple Offers.”
- Timing of Presentation
The Company strongly supports and maintains a policy to present all offers and counter offers as quickly as possible. Standard of Practice 1-6 of the REALTOR® Code of Ethics provides the standards in this area.
The policy of the Company is that these terms are to be interpreted to mean “immediately” or “as soon as humanly possible”. As an example, a listing agent’s receipt of an offer should immediately generate a telephone call/text to the owner to determine when the seller is available for presentation of the offer. Once contacted, the seller can then instruct the listing agent as to when to present the offer. The critical point is that the Company believes that the listing agent MUST make a diligent effort to contact the seller IMMEDIATELY upon receipt of the offer. – not an hour later, not when the agent finishes lunch, not after the agent shows property, etc.
In the case of a buyer agency, the same principles apply with equal weight. The buyer is the client and must be treated with the same high levels of fiduciary duty as a seller who is a client. These same principles should be adhered to, even in the case of a buyer who is a customer and not a client. State Real Estate Commission Rules speak to the delivery of offers with no reference to client-agent relationship.
This is an extremely simple yet very important risk reduction technique. Every agent of this Company should consider this of prime importance. The obvious danger in not taking this issue seriously. The offeror can revoke or withdraw his or her offer at any time prior to a valid acceptance. The Company does not want to be in a position of defending an action where an offer was withdrawn before a seller was contacted or diligent efforts to contact the seller were not made.
These issues are common, daily events that the agent should learn to handle with skill and ease. The agent’s ability to understand and deal with these issues will act as a significant risk reduction method and contribute to an agent’s successful practice of the real estate business.
7.23 Loan Modification #
The Company does not provide loan modification services to our clients. You may not engage in loan modification for others without the express written consent of the Company.
7.24 Property Management #
The Company provides property management services to our clients in specific States throughout the nation. Inquire with your Broker/Manager if your state currently provides this service. See Exhibit XYZ for the states the Company is actively providing property management services. You may not engage in the management of property for others without the express written consent of the Company. You will need to be set up in the Company’s software system (AppFolio) to manage property. Training on Property Management must be completed with the Broker or Manager prior to managing your first property.
7.25 Loan Origination #
The Company provides loan origination services to our clients in specific States throughout the nation.Inquire with your Broker/Manager if See Exhibit XYZ for the states the Company is actively providing loan origination services in your state. You may not engage in loan origination services for others without the express written consent of the Company. You will need to be set up in the Company’s software system (HiMaxwell and Lending Pad) to originate loans. Training on loan origination must be completed with the Broker or Manager prior to managing your first property.
7.26 Gifts #
It is the policy of this Company that you may give gifts to your clients at closing and other times as an appreciation of their business, subject to the State laws. You may not give gifts to those who are not a party to the transaction.
7.27 Out-Of-State or Out-Of-Country Business #
If you are requested by a client to handle the listing or sale of property in a State that the Company is not currently licensed or in a geographic market worldwide not served by the Company (outside United States), it is the policy of this Company that you refer that business to a broker in that area, or if permissible by state or country, to arrange a reciprocal agreement to cooperate in the sale or cooperate with that broker. See Exhibit A for the list of States that the Company is currently active and licensed and Exhibit L for reciprocal agreement opportunities nationwide.
7.28 Referral Fees #
The Real Estate Settlement Procedures Act (RESPA) generally prohibits a settlement provider (real estate agent, lender, title company, etc.) from giving or receiving cash or anything else of value for the referral of business or in expectation of the receipt of future business, pursuant to a pre-existing agreement. One exception is between real estate brokers (but not mortgage brokers) for the referral of clients, in which case referral fees may be paid or received. RESPA generally applies to transactions involving properties with one-to-four residential units with a federally-related mortgage loan (this includes most institutional loans). You may not, personally or on behalf of the Company, offer to give to, or accept from, a non-real estate broker or agent a fee or anything of value for the referral of a client to you pursuant to a pre-existing agreement to do so. If you have any questions as to whether to accept such a fee or anything of value, contact your Manager.
7.29 Power oOf Attorney #
It is Company policy that you never act as an attorney-in-fact under a power of attorney for your clients. If your clients will not be available to sign documents related to a transaction, they should secure someone, other than you or someone connected with the Company, to act on their behalf. You should have the settlement or escrow company review any power of attorney to determine its sufficiency for its purposes of the attorney-in-fact to execute necessary documents.
7.30 Cooperation and Compensation Policy #
Cooperation and Compensation of Buyer’s Agents: The Company believes it is in the best interests of the Company’s seller-clients to give the property the widest possible exposure of potential showings. Since buyer’s agents conduct showings in the market, the Company cooperates and compensates buyer’s agents typically at the same level of cooperative compensation. Special circumstances exist where a listing agent’s commission percentage may be higher or lower than what is offered to the buyer’s agent.
In all cases, before entering into a listing agreement, the listing agent is ethically obligated to disclose to the seller:
- The company’s policy regarding cooperation and the amounts of any compensation that will be offered to buyer’s agents;
- If the company cooperates with buyer’s agents, the disclosure must also state that buyer’s agents, even if compensated by the Company, will represent the buyer, not the seller; and
- Any potential for the Company to be a dual agent, if Company policy allows dual agency.
The Company maintains a strong policy that no unlicensed person will be paid for any real estate activity requiring a license. The real estate licensing law makes it clear that an unlicensed person may not be paid for acts which require a real estate license. An exception to this policy is for referral or finder’s fees paid to buyers and sellers in their own transactions, which is permissible under the real estate licensing law.
7.31 Telephone Solicitation Policy – Do Not Call Compliance #
It is the policy of the Company to comply with federal and state telemarketing rules regulating the telephone solicitation activities of its agents and employees. A “telephone solicitation” is a telephone call or message to any residential telephone subscriber “…for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services…” Calls attempting to obtain a listing from a FSBO seller or a seller whose listing with another company has expired are covered under this definition. All agents and employees of the Company are required to comply with this policy.
It is your responsibility to adhere to the “do not call” policy and you will be solely responsible for any violation, including any fines, penalties, damages recovered, settlements or attorney’s fees and costs.
- Before Soliciting Business by Telephone
It is the responsibility of the Agent/Loan Officer to confirm that the number is not listed on the “Do No Call” Registry The Company has registered for the Federal “Do Not Call” Registry and has two basic options for accessing numbers listed in the Registry: one, the Company downloads the list of registered numbers for the area codes selected from the Registry and uploads this list to dialing software that Associates use; or two, checking the numbers manually via an online phone number search of the Registry. The second option is probably the most useful for Company Associates that engages in limited cold calling.
- Federal “Do Not Call” Registry
You must first obtain access to the current Federal “Do Not Call” Registry. The Registry is available online at https://telemarketing.donotcall.gov. The office manager or broker-in-charge will supply you with the necessary ID and password. You may look up telephone numbers via an interactive phone number search. You will be able to check up to ten numbers at a time within the area code(s) that have been selected by the Company. The search will returncome back “Registered” or “Not Registered”.
If a number comes back “Registered,” you may NOT call the number UNLESS:
- One of the exceptions set forth in Section 2 below applies AND
- The number does not appear on the Company “Do Not Call” list (see 1.B. below).
- If a number comes back “Not Registered”, you may call the number UNLESS it appears on the Company “Do Not Call” list (see 1.b. below).
- Company “Do Not Call” List
The Company is required to maintain its own list of persons who have specifically requested that the Company or its sales associates not call them. Ask the office manager or broker-in-charge for a current copy of the list. You may NOT under any circumstances call any number appearing on the Company list, even if one of the exceptions set forth in Section 2 below applies.
- Document the date and time that you checked the Lists to help prove your attempt to comply with telemarketing laws.
- You may only use the Lists for the purposes set forth in this policy, and you may not provide access to or copies of any of the Lists to anybody outside the Company.
Agents and employees of the Company should always be working from an up-to-date version of the Company list, which may not be more than 30 days old. The names of persons who have requested that the Company or its sales associates not call them must be added to the Company DNC List as soon as possible and in no event more than 30 days from the date of the request. A do-not-call request must be honored for five years from the date the request is made.
- Exceptions
You may place a telephone solicitation to a number listed on the Federal “Do Not Call” Registry in certain instances UNLESS the number also appears on the Company “Do Not Call” list. The exceptions are as follows:
- You may call a FSBO seller on behalf of a buyer, customer, or client who has interest in the property.
- You may NOT call a FSBO seller in an attempt to obtain a listing or to otherwise attempt to “sell” your services as a real estate professional.
- You may call persons with whom you have a “personal relationship”, defined as a family member, friend, or acquaintance.
- You may call a former client of the Company for up to eighteen months after the end of the agency relationship.
- You may NOT call a seller whose listing with another company has expired in an attempt to obtain the listing. You may call the seller on behalf of a buyer, customer, or client who has interest in the property.
- You may call a person who has made an inquiry to the Company about property or real estate services.
- For calls to referrals, see section 5 below
- You may call a person who has given express written permission for you and/or the Company agents to solicit them by telephone. The written permission must include the telephone number to which a call may be placed.
- This includes someone who has given permission at a Company open house using the Company’s approved registration form.
(NOTE: To ensure that an open house visitor has given express written permission to receive a follow-up telephone solicitation, it is recommended that the sign-up sheet contain some kind of notice, such as a box next to each line allowing the visitor to check “yes” if they consent to receive of a follow-up call.)
- Conducting Telephone Solicitations
- No telephone solicitations may be made before 8:00 a.m. or after 9:00 p.m.
- If, during a telephone solicitation to a consumer whose name does not appear on any of the Lists, the consumer states that he/she does not want to continue the call, advise the consumer that you will respect his/her wishes, thank him/her and hang up. Please immediately report the name and telephone number of the consumer to the office manager or broker-in-charge for placement of that person’s name and telephone number on the Company’s “Do Not Call” list.
- During the call, you must provide the consumer with your name, the Company name, and the telephone number or address where you and the Company may be contacted.
- The telephone used to make a telephone solicitation must transmit your caller ID information in areas where this is technologically possible. Check with the office manager or broker-in-charge regarding Company telephones or with your telephone company regarding any other telephone you may use.
- You may not block the transmission of your caller ID information.
- Do not use a pre-recorded message or auto dialer.
- Do not disconnect an unanswered call prior to at least 15 seconds or four rings.
- The rules cover all types of telephones (cell, etc.) and apply whether you are calling from inside or outside the Company office.
- Returning a Call to a Consumer Whose Name Appears on the Lists
- You may return a call to a consumer whose name appears on any of the Lists when the return call is made in response to an express request from the consumer.
- A telephone message instructing you to call a consumer is such a request and may be answered.
- When a consumer calls and asks to speak with someone who is not available, the person taking the message should specifically ask the caller if they would like a return call. This should be conspicuously noted on the message.
- A request for a return call left on a voicemail message or answering machine should be documented by the recipient as evidence of the message.
- Referrals
- If you receive a referral of possible business from a third party, such as a relocation company or another real estate agent in which the client is unaware, you must check the Lists before you call the prospect. THIS APPLIES TO PURCHASED LEADS AS WELL.
- If the prospect’s phone number is not on any of the Lists, you may call the prospect.
- If the prospect’s name is on the Company Do Not Call list, you may not call the prospect under any circumstances.
- If the prospect’s phone number is on the Federal Do Not Call List, you may not call the prospect UNLESS the referring party has provided a signed statement from the prospect agreeing that you may contact the prospect, including the telephone number to which the call may be placed.
- Scripts
Approved scripts are available from the Company upon request. Any script outside of these approved scripts needs to be reviewed by the Manager and Broker prior to using the script.