4.36 Personal Transactions

You may buy or sell real property for your personal use subject to the following guidelines.

A. Listings

See the Agent/Loan Officer-Owned Property section of this Policy Manual for information regarding the handling of listings of property in which you have an ownership interest.

B. Commissions

Upon the sale or purchase of real property in which you have, or will have, an ownership interest, you agree to pay to the Company a commission based on 2.5 % of the sales price in the amount that the Company would have received, net of any commission paid to you, based on your commission split on that transaction.

Upon the lease of real property in which you have, or will have, an ownership or possessory interest, you agree to pay to the Company a commission based on 5% of the annual rental payments in the amount that the Company would have received, net of any commission paid to you based on your commission split for that transaction.

An exception exists for one purchase of a primary residence within a 12-month period, in which case you will be allowed to keep 100% of the entire commission paid for that transaction minus the 5% overhead fee per your commission schedule and based on a full 2.5% commission.

Agents/Loan Officers acting as an investor on a regular basis (more than one investment per year) may request in writing from the Manager an exception to receive 100% of the entire commission when purchasing more than one investment property within a 12-month period minus the 5% overhead fee. This exception will not apply on listings. All Agent / Loan Officers- Owned listings must be listed and sold through the Company and the Agent must follow the E&O policies pertaining to Agent-Owned Property to protect the Agent and Company from liability. Agents may be able to represent themselves, on purchases only, outside the Company with written approval from the Manager and a signed liability waiver, but cannot receive a commission from the seller. No Company resources, documents, forms, staff or E&O can be used for these purchases. Documents may never contain the name of the Company or any language that would suggest the Company is representing the buyer. See Section 15: Litigation & Claims Handling under Agent/Loan Officer - Owned Property for more information.

An exception exists for one sale of a primary residence within a 12 month period, in which case you will be allowed to keep 90% of the entire commission paid for that transaction minus the 5% overhead fee per your Commission Schedule and based on a full 2.5% commission.

The purchase or sale by you of a primary residence, for which no commission is paid to the Company, will not count towards any monthly or annual awards.

C. Indemnity

Except as may be covered by the Company’s Errors & Omissions policy of insurance, you agree to indemnify and hold harmless the Company from any and all claims against you and/or the Company arising out of the purchase, sale, or lease of any real property in which you have, or will acquire, an ownership or possessory interest.

D. Disclose Interest in Property

In selling property, you own or in which you have an interest, you must disclose your ownership or interest in writing to the buyer or buyer’s representative. If you act as the buyer’s agent, you must also disclose the nature and extent of your direct or indirect ownership interest in the property by a person related to you by blood or marriage, by an entity in which you have any ownership interest, or by any other person with whom you have a special relationship.

You must disclose to the owner or owner’s agent in writing that you are a real estate licensee whenever you acquire an interest in or buy or present offers for yourself, any member of your immediate family, your firm, any member of your firm, or any entity in which you have an ownership interest.