4.44 Risk Management and Errors & Omissions (E&O) Fee

Each year, the Company shall separately establish and publish the amount to be paid by all salespersons, and the method of that payment, as a Risk Management Fee. This Fee will be used by the Company to offset the costs of the Errors & Omissions policy of insurance; legal advice related to transactions and escrows as needed; settlements, judgments, and legal fees and costs of claims and litigation; and other risk management costs, such as education and training.

Currently, the Company does not assess a risk management fee. In the future, if needed, the Company reserves the right to implement a Risk Management Fee. The Company does assess an E&O insurance fee per transaction, unless the Associate carries their own E&O policy. The E&O fee varies from year to year, generally it is $25-75 per transaction depending on the risk profile in each State and the amount of outstanding claims. The E&O fee is only charged on closed transactions. Inquire with your Broker/Manager as to the current E&O fees in your state.