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.