POLICIES AND PROCEDURES MANUAL Revised 02/01/2014

Transcription

1 POLICIES AND PROCEDURES MANUAL Revised 02/01/2014 1

2 Transaction Files Section 1 Texas Real Estate Commission Regulations Page 5 Required Paperwork Page 5-7 Paperwork Policy Page 8-9 Broker Review Page 10 Agency Relationships Page 10 Employment Agreements Page 11 Earnest Money Page 11 Areas of Expertise Page 12 Cooperation & Compensation Page 13 Advertising/Marketing Section 2 Advertising Guidelines Page 15 Signage Page 15 Print Advertising Page 16 Domain Names, Addresses, Websites, and Trademarks Page 16 Telemarketing Page 17 Federal Fair Housing Page 17 Regulation Z Page 17 Real Estate Settlement Procedures Act (RESPA) Page 17 Use of Social Media Page Insurance & Financial Section 3 Errors and Omissions (E & O) Insurance Page 23 Sale of Agent Owned Properties Page 24 Insurance Requirement When Listing Real Estate Owned by a Lender (REO) Properties Page 24 Covenant To Cooperate Page 25 Automobile Insurance Coverage Page 25 Personal Property Insurance Page 25 Statements and Billing Page Independent Contractor Status Page 26 Commissions Page 27 Splitting of Fees with Another Zing Realty Agent Page 27 Retainer Fees Page 28 Referral Fees Page 28 Stop Payment Charges Page 28 2

3 Office Facilities Section 4 Private Offices Page 30 Computer Usage Page 30 Telephones Page 30 Office Equipment Page 30 Professional Associations Section 5 Local, State, National Page 32 Texas Regional Multiple Listing Service Page 32 Arbitrations & Ethic Hearings Page 32 License Renewal Page 33 Office Policies Section 6 Sexual Harassment Policy Page 35 Smoking/Drugs/Alcohol Page 35 Equal Opportunity Page 36 Anti-Trust Policy Page 36 Vacation/Out-of-Town Policy Page 36 Teams & Assistants Page 37 Unlicensed Assistants Page 37 Personal Information Updates Page 37 Unauthorized Activities Page

4 SECTION 1 TRANSACTION FILES 4

5 TEXAS REAL ESTATE COMMISSION The Texas Real Estate Commission (TREC) Rules and Regulations require that each licensed designated real estate broker keep records of all real estate transactions handled by or through the broker as well as establish a system to ensure all documents are turned into the broker in a timely manner. The records shall be available at all reasonable times for inspection by the commissioner or his representatives. The broker shall keep the records of each transaction for a period of at least five years (withdrawn or rejected one year) from the date of termination of the transaction. Access to the broker s files must be arranged through the broker s office. Removal of any file from the broker s office may lead to termination. Zing Realty requires all listing agreements, purchase contracts, and lease agreements be submitted to Zing Realty within five calendar days of the date of execution. It is, therefore, the Agent s responsibility to see that Zing Realty is given all executed contracts, listing agreements, counter offers, addenda, and lease agreements no later than five days of the last signature date, including MLS printouts and any changes. The Agent will also be responsible for ensuring all additional required documents are submitted to Zing Realty. The Agent who fails to turn in his/her documents in a timely manner as required by the Texas Real Estate Commission will be subject to Zing Realty s Late Paperwork Policy which includes fines in addition to the Agent s agreed upon fee schedule with Zing Realty fees. REQUIRED PAPERWORK It is the policy of Zing Realty that, whenever possible, the most current Texas Association of REALTORS (TAR) and Multiple Listing Service (MLS) forms will be used in all transactions. These forms are available through the local Associations, through Zip Forms, through the MLS and through the Zing Realty website. The Agent must obtain Zing Realty s approval (prior to use) in the event any non-approved form is used. Contracts and related forms are updated from time-to-time. It is the policy of Zing Realty to use only the most current version. The responsibility for the use of any form is the sole obligation of the Agent. Clauses that are not specifically approved for use in contracts by Zing Realty are not permitted. Approved contract clauses are available on the Zing Realty website for the Agent s use. It shall be the policy of Zing Realty to require a substantially complete the Seller Property Disclosure Statement (SPDS) in all transactions. The Agent shall not write anything on the SPDS or complete the form for the Seller. Should a Seller, for any reason, refuse to provide a Buyer the SPDS, the Agent shall document that a diligent effort was made in order to obtain the SPDS and have the Seller complete the form titled Seller Property Disclosure Statement Hold Harmless Seller. In addition, should a Zing Realty represented Buyer elect to waive the SPDS, he/she will be required to sign the Seller Property Disclosure Statement Hold Harmless Buyer form. As an agent associated with Zing Realty, the Agent shall disclose in writing all material facts that may adversely affect the consideration to be paid by any party. In addition, the Agent shall not promote the interest of one party to the detriment of another in a transaction nor disparage the conduct, reputation or character of another licensee, in or out of this office. Any fact the Agent knows or thinks could be material to the value of a property must be disclosed in writing to the parties to an agreement. Said disclosure shall be made in writing and shall supplement the agreement between the parties. 5

6 LISTINGS-REQUIRED DOCUMENTS: Exclusive Right to Sell/Rent, Exclusive Agency or Legal Listing Agreement Real Estate Agency Disclosure and Election (for Zing Realty Agent) MLS Profile Sheet Signed by Seller / Printout signed by Seller MLS / Printout Seller Property Disclosure Statement (SPDS) or Residential Lease Owner s SPDS Affiliated Business Disclosure Lead Based Paint Disclosure (LBP) if built prior to 1978 Short Sale Addendum to Listing Agreement-if listing is a Short Sale Short Sale Seller Advisory-if listing is a Short Sale RESIDENTIAL RESALES-REQUIRED DOCUMENTS: TAR Residential Resale Purchase Contract and all addendums Real Estate Agency Disclosure and Election (for Zing Realty Agent) Seller Property Disclosure Statement (SPDS) Buyer s Inspection Notice and Seller s Response (BINSR) Copy of MLS printout Copy of Earnest Money Receipt from Title Company (not a copy of the check) Affiliated Business Disclosure Lead Based Paint Disclosure (LBP) if built prior to 1978 Short Sale Addendum to the Purchase Contract-if Short Sale NEW CONSTRUCTION SALES-REQUIRED DOCUMENTS: Builder Purchase Contract and all addendums with Authorized Builder signature Copy of Earnest Money Receipt from Title Company or Builder Copy of Receipt of the Public Report signed by the Buyer Real Estate Agency Disclosure and Election (for Zing Realty Agent) Affiliated Business Disclosure Buyer s Inspection Notice and Seller s Response-if an inspection was completed VACANT LAND SALES-REQUIRED DOCUMENTS: TAR Vacant Land/Lot Purchase Contract and all Addendums Real Estate Agency Disclosure and Election (for Zing Realty Agent) Vacant Land/Lot Seller Property Disclosure Statement (SPDS) Vacant Land Buyer Inspection Notice and Seller Response (BINSR) Copy of MLS printout Copy of Earnest Money Receipt from Title Company (not a copy of the check) Affiliated Business Disclosure Affidavit of Disclosure (if applicable) COMMERCIAL SALES-REQUIRED DOCUMENTS: Commercial Purchase Contract and all Addendums Real Estate Agency Disclosure and Election (for Zing Realty Agent) Commercial Seller Property Disclosure Statement (SPDS) Copy of MLS printout or Loopnet Listing Affiliated Business Disclosure Copy of Earnest Money Receipt from Title Company 6

7 RESIDENTIAL RENTALS-REQUIRED DOCUMENTS: Rental Agreement and all addendums Copy of MLS Printout Real Estate Agency Disclosure and Election (for Zing Realty Agent) Lead Based Paint (Rental) Disclosure - if built prior to 1978 Residential Lease Owner s Property Disclosure Statement ADDITIONAL REQUIRED DOCUMENTS WHEN YOU REPRESENT THE BUYER: Copy of Receipt of Buyer Advisory page 9 of Buyer Advisory or a copy of an confirming you sent the Buyer Advisory link to the Buyer ADDITIONAL REQUIRED DOCUMENTS WHEN YOU REPRESENT BOTH THE BUYER AND SELLER: Consent to Limited Dual Representation ADDITIONAL REQUIRED DOCUMENT WHEN YOU ARE THE SELLER (OR HAVE OWNERSHIP INTEREST): Zing Realty requires the Owner Agent Addendum to the Purchase Contract for all sales where a Zing Realty Agent has an ownership interest in the property. 7

8 ZING REALTY PAPERWORK POLICY Zing Realty requires that all contracts, listings, and lease agreements be submitted to Zing Realty within five days of being executed. This includes all listing agreements, purchase contracts, and lease agreements. Zing Realty allows paperwork to be submitted via fax or . The Agent is responsible to verify that his/her paperwork has been received. The Agent must be proactive during his/her transaction to ensure that he/she resolves any missing paperwork or broker review items early on in the transaction. Zing Realty encourages commissions be paid directly from Ttle as long as all paperwork has been completed and the file has been marked complete. If a transaction has been submitted more than five days after being entered into, the following will occur: 1) A note will be made in the Agent s personnel record indicating the paperwork was submitted late. 2) If the Agent repeatedly submits paperwork late, the Agent will be subject to fines and/or termination. If a transaction has been submitted timely, closes escrow, and Zing Realty is still missing documents that are required at the close of escrow, the following will occur: 1) The Agent will receive an or phone call notifying him/her that Zing Realty has received a closing package for a file that is incomplete, and the Agent will be instructed to determine what documents are missing. 2) If Zing Realty does not receive any communication from the Agent and the Agent does not submit the missing documents within seven days of the phone call, the Agent will be notified via that he/she is in violation of Zing Realty s paperwork policy. The Agent will have 72 hours to contact the office regarding the missing paperwork. 3) If Zing Realty still does not receive any communication from the Agent and does not receive the missing paperwork within 72 hours of the , the Agent will be notified by a final that he/she is being assessed a fine of $50.00 in addition to transaction and risk reduction fees. 4) If within thirty days after the close of escrow the Agent still has not submitted the missing paperwork, the Agent s entire commission will be subject to forfeiture. 8

9 If paperwork has not been submitted to Zing Realty and Zing Realty receives a closing package and commission check or Zing discovers a listing has closed through an MLS audit, the following will occur: 1) The Agent will receive an or phone call notifying him/her that Zing Realty has received a closing package or discovered a closed listing through an MLS audit. The Agent will be assessed a $ fine for sales and $50.00 fine for leases in addition to all other transaction fees. The Agent will have seven days to submit all required paperwork. 2) If Zing Realty does not receive any communication from the Agent and the Agent does not submit all paperwork within seven days of the or phone call, the Agent will be notified via that he/she has been assessed a $ or $50.00 fine and that he/she is in violation of Zing Realty s policy and the Texas Real Estate Commission policy for submitting paperwork. The Agent will have 72 hours to contact Zing Realty regarding the missing paperwork. 3) If Zing Realty still does not receive any communication from the Agent and does not receive all paperwork within 72 hours of the , the Agent will be notified by a final that he/she is being assessed an additional $ or $50.00 fine (in addition to the first fine and all other transaction fees). 4) If within 15 days after the close of escrow or discovery of a listing, the Agent still has not contacted the office regarding the missing paperwork or has not submitted all required paperwork, the Agent s entire commission will be subject to forfeiture, the listing will be removed from the MLS, and the Agent will be subject to termination. If a listing has been entered in the MLS and no paperwork has been submitted to Zing Realty within five days, the following will occur: 1) The Agent will receive an or phone call notifying him/her that Zing Realty has discovered a listing through an MLS audit that Zing Realty does not have any listing paperwork. The Agent will have 48 hours to submit all required listing documents. 2) If Zing Realty does not receive any communication from the Agent and the Agent does not input the listing on the Agent s website and submit all listing documents within 48 hours of the phone call, the Agent will be notified (via ) that he/she is in violation of Zing Realty s paperwork policy and that he/she has been assessed a fine of $50.00 for failing to submit listing paperwork to Zing Realty. 3) The Agent s listing will then be placed in a T.O.M. status in the MLS until the paperwork is submitted to Zing Realty. In addition, Zing Realty reserves the right to hold all commissions until the Agent completes all closed transactions. As the Agent should see from the above policy, Zing Realty is very serious about its policy for submitting paperwork timely and complying with the Texas Real Estate Commission rules. All fines can be avoided by submitting paperwork within five days of acceptance. 9

10 BROKER REVIEW Upon receipt of any contract, listing, or lease agreement, Zing Realty shall review and post the results of the review on the Zing Realty website. It is the Agent s responsibility to check the website and correct any issues that Zing Realty has noted. The website will also indicate what paperwork was received and what paperwork is still needed to complete the file. Any corrections should be addressed and then submitted to Zing Realty as soon as possible. The Agent should not wait until the day before close of escrow to address any missing items or necessary corrections as it will delay commission disbursement. Should Zing Realty request a form or item be corrected in the purchase contract, listing agreement, or lease agreement and the Agent fails to submit the requested form or correction, the Agent hereby agrees to defend, indemnify and hold harmless, Zing Realty, its Brokers, its Owners, and its management and support staff from any and all claims that may arise from the contract or lease. It is very important that all requested forms and corrections be addressed immediately and prior to the close of escrow. AGENCY RELATIONSHIPS Zing Realty allows the following relationships with clients and customers: 1) Seller/Lessor's Agent 2) Buyer/Lessee's Agent 3) Limited Dual Representation The Agent shall see that the relationship with the party is established in writing on a form acceptable to Zing Realty [Texas Association of Realtors (TAR) form Real Estate Agency Disclosure and Election]. The failure to establish and disclose the type of relationship one has by the time of contract is unacceptable. The contract is to serve only as a confirmation of an election made by the Buyer/Lessee or Seller/Lessor in a separate writing prior to the contract. As a matter of general practice, the Agent shall enter into a representation agreement with the party with whom the Agent is working. Such an agreement shall be submitted to Zing Realty with the sales or lease documents and become part of the file. The Agent is discouraged from entering into limited dual representation agreements. Should the Agent enter into a limited dual agency relationship with both parties to a transaction, the Agent agrees to have the TAR form Consent To Limited Dual Representation signed by both parties prior to entering into the contract or lease. The relationship should then be confirmed on the contract or lease. As an agent with Zing Realty, the Agent is expected to adhere to this policy and to the Independent Contractor Agreement to its fullest extent. Should the Agent not adhere to this policy, he/she agrees to defend, indemnify, and hold harmless Zing Realty, its Brokers, its owners, and its management and support staff against all claims that may arise from such a departure. In addition, failure to comply with this policy is grounds for the immediate termination of the Agent. 10

11 EMPLOYMENT AGREEMENTS The Buyer Broker Exclusive Employment Agreement inherently credits in escrow any up-front retainer fee charged towards any commissions earned as a result of the Buyer s purchase of the property that satisfies the terms of the Buyer Broker Agreement. All retainer fees must be made payable to Zing Realty per TREC and the Buyer Broker Agreement must be immediately turned-in to Zing Realty. All retainer fees above $2, must have prior approval from Zing Realty. All personal checks must clear Zing Realty s account prior to the release of any funds. Release of retainer funds to the Agent are at Zing Realty s sole discretion prior to the completion and satisfaction of the Buyer Broker Agreement and such retainer funds shall never exceed the compensation paid during said transaction. When taking refundable deposits, the Agent is responsible for repaying Zing Realty for any retainer amount that exceeds the ultimate compensation earned from the transaction if such retainer was released to the Agent. When taking non-refundable deposits, the Agent is still responsible to submit the deposit to Zing Realty. This type of retainer is above and beyond any earned commissions. In addition, if the Agent is receiving compensation from more than one party, the Agent must disclose this in writing and be acknowledged by both parties. EARNEST MONEY Upon acceptance of the offer, the earnest money is to be promptly deposited with the Title Company. The Agent shall specifically state in the real estate purchase contract the type of earnest money in the real estate transaction, whether it is cash, a check, a promissory note, or any other item of value and where the monies will be deposited. After the earnest money has been delivered to Title or Escrow Company, the Agent must obtain a receipt of the money and submit it to Zing Realty for its records. The Agent may not accept cash or post-dated checks from the Buyer. If the Buyer only has cash, the Agent should instruct him/her to obtain a cashier s check or money order from a bank or other financial institution payable to the Title or Escrow Company. The Agent is subject to immediate termination if it has been determined that there has been improper handling of the earnest money. Such improper handling of funds could be: 1. Failure to deposit at the Title or Escrow Company within the time specified on the contract. 2. Representation to the Seller that earnest money is on deposit prior to the actual receipt of the deposit. 11

12 AREAS OF EXPERTISE The Agent shall not offer real estate services to the public that are outside the Agent s area of expertise or offer any services in which the Agent is not competent. At the option of Zing Realty, another Agent will be assigned to work with the first one to personally assist him/her in such a transaction. In the event compensation to the second Agent is affected, Zing Realty, together with the first Agent, shall negotiate a reasonable compensation agreement on that transaction. This Policy is intended to be in compliance with Article 11, of the REALTOR Code of Ethics. In addition, the Agent is not allowed at any time to practice property management or assist buyers and sellers with business opportunities. There are no territorial boundaries. However, the Agent shall be expected to offer the same level of service to all clients and customers in all market areas in which he/she practices. In addition, no Agent shall conduct activity in a state other than Texas unless he/she has an active real estate license in that state. All Broker Price Opinions (BPO s) shall contain a statement disclaiming the Agent as a guarantee of the value. All fees for BPO s shall be made payable to Zing Realty and paid through Zing Realty. No Agent is authorized to render legal, appraisal, or tax advice to any person on behalf of Zing Realty or its brokers. Under no circumstances is an Agent to deny or in any way discourage a customer or client from seeking the advice of an attorney of his/her choice. Rather, such activity should be encouraged. The Agent shall make certain that all clients and customers read and understand the documents to a transaction. Should the customer or client have difficulty in reading the forms and agreements or with the English language in general, the Agent should advise the customer to retain an attorney or interpreter of his/her choice. In the event of an interpreter, the interpreter should sign as a witness to the agreement. Once a customer or client has signed a document, he/she is entitled to and shall therefore receive a copy of the document upon its execution. In addition, the Agent shall not: 1) Provide interpretations of a person's legal rights or obligations resulting from a contract. 2) Provide interpretations on the methods of taking title, encumbrances or contractual obligations or the consequences of any of these. 3) Deny a client or customer adequate time to read all documents or seek an understanding of said documents prior to executing them. 12

13 COOPERATION AND COMPENSATION Zing Realty will not offer cooperation or compensation to sub-agents through any MLS. Zing Realty will, however, offer cooperation and compensation to Buyer Brokers through MLS. The Agent shall respect the agency relationship of the listing office. When representing a Buyer only, under no circumstances should the Agent, as the Buyer s Agent, contact a Seller directly without the express consent of the listing broker. When showing a listing of another office, the Agent shall make every effort to contact the other office and announce his/her Zing Realty agency relationship to the Buyer. When contacting the listing office, the Agent is advised to verify the co-brokerage fee and document that verification in his/her file. The Agent should make a note to whom he/she spoke and the agreed upon co-brokerage fee. Zing Realty shall, in every case, extend to the Selling Office the opportunity to present the offer to Zing Realty s Seller in Zing Realty s presence. Once the presentation is complete, the Selling Agent shall be asked to leave. As the Listing Agent, the Agent will present al offers to the Seller unless the Seller instructs Zing Realty in writing to do otherwise. The Agent shall obtain Seller s written rejection of any offers and provide the rejected offers to Zing Realty and the Buyer s Broker. 13

14 SECTION 2 ADVERTISING/MARKETING 14

15 ADVERTISING GUIDELINES The Agent agrees to comply with Zing Realty s Advertising Guidelines. Zing Realty encourages originality and creativity in advertising. Advertising for this section shall include all print advertising (flyers, classified ads, home magazines, mass mailings, internet/web sites, signs, business cards, stationery/letterhead, etc.) and mass communication intended to promote a property or solicit buyers or sellers. Unless specifically agreed to, Zing Realty is not obligated to pay in whole or in-part the advertising for the Agent's listing inventory or any other form of advertising including personal promotion. Prior to submitting the advertising, the Agent must obtain approval in writing from Zing Realty all advertising placed in any publication, mailed, or placed on the Internet by the Agent. The below guidelines should be followed at all times. 1. The Agent is encouraged to promote himself/herself as a specialist. The creation of a Zing Realty division or department or a position such as a director or manager is prohibited. 2. The Agent is encouraged to promote his/her accomplishments. The Agent should make announcements as an individual and not on behalf of Zing Realty. 3. When advertising or publicizing any commission arrangements, the Agent must clearly state this is the Agent s program and not Zing Realty s program. 4. Advertising will include the name Zing Realty prominently so as to leave no question it is a Zing Realty ad. The phone number listed for Zing Realty in all ads must be answered Zing Realty at all times. Office numbers and/or home number are acceptable. Trademark names or fictitious names are prohibited. 5. The Agent may advertise by using the term team and/or group as long as the team/group is comprised of Zing Realty licensees. No unlicensed person may be a member of the team/group. 6. All advertising for listed properties in which the Agent has an ownership interest must include the disclosure owner/agent. 7. When advertising a service or product as free or complimentary, the Agent must state the approximate value of the service or product, what exactly the client or customer must do to receive the service or product, and the expiration date for the offering. 8. The Agent is discouraged from using brand names when advertising features of a property. Example: The brand Pebble Tec should be avoided. Instead, use Pebble Surface. The brand Jacuzzi should be avoided. Instead, use Spa. 9. The Agent is also discouraged from using phrases like unlimited views forever, new, and totally remodeled, and other extreme terminology. SIGNAGE Yard signs must be purchased by the Agent and are the personal property of the Agent. Zing Realty has a vendor that provides signs for Zing Realty. All signs must include Zing Realty and a phone number that is answered Zing Realty. 15

16 PRINT ADVERTISING All print advertising must include the Zing Realty logo and name. Logos are available at the Zing Realty website. The ads must contain a phone number answered Zing Realty. The ads do not need to contain the actual address or actual phone number of Zing Realty. DOMAIN NAMES, ADDRESSES, WEBSITES AND TRADEMARKS When using Zing Realty in the Agent s Internet branding, the Agent should develop a strong brand in to create consumer confidence and trust. The proper use of the Zing Realty trademarks is the most efficient way to develop a thriving Internet presence. A variety of real estate companies and their franchisors do not permit their agents to use their brand in domain names. Zing Realty, however, encourages its Agents to take advantage of its famous Zing Realty trademarks in their personal Internet marketing. Nevertheless, the Agent must protect the exclusivity of the Zing Realty trademarks by abiding by the standards that are provided throughout this manual. A. Zing Realty is still Zing Realty in a domain name or address. Due to the fact that domain names and address do not distinguish uppercase from lowercase, Zing Realty appropriately becomes zingrealty. The Zing Realty trademark cannot be modified or abbreviated in any other way within domain names and addresses. No other Zing Realty marks may be used as part of a domain name or address. B. Hyphens are required. To help increase the visibility of Zing Realty in a domain name, Zing Realty must be the first word used in a domain name if and when used at all. Zing Realty must also be separated from another letter and/or number with a hyphen. Domain names can be an effective tool in marketing online but do not play a large role in search engine optimization. C. Agent or team domain names The Agent who would like to include his/her name and Zing Realty in a Web address has the following two options: (1) The Agent can set up a post-domain directory or path or a subdomain (also known as a third-level domain). A post-domain directory or path is separated from the main address by a slash (/) and is like an extension or sub-folder of the main site. A subdomain is the part of the website address before the domain name. It is separated from the domain name (also known as the second-level domain) by a dot (.). (2) The Agent can register a domain name. The only acceptable format for the Agent to register a domain name containing Zing Realty is for a domain that includes: zingrealty-(affiliate/team name).com D. Team Awards For the purposes of awards or other recognitions, the Agent will be considered a Team/Group if any of the following occurred during the time period for which the award is being calculated. (1) Agent is registered with Zing Realty as a Team/Group. (2) Agent advertises and/or promotes himself/herself as Team/Group. (3) Agent has an agreement to share a portion of every commission with another agent, excluding licensed assistants. The Agent who would like to include his/her name and Zing Realty in a web address must use a hyphen between the words Zing Realty and the Agent s name or Team name. All domain names must be approved by Zing Realty. 16

17 TELEMARKETING The Agent must not make any telemarketing calls to residential homes before 8:00am or after 9:00pm. The Agent must provide his/her name and state he/she is with Zing Realty. The Agent must submit the name of any person requesting that Zing Realty not call his/her residence again to the Broker and/or Office Staff so the name can be added to Zing Realty s Do Not Call List. Before telemarketing, the Agent must first review the Do Not Call List to ensure he/she does not call persons wishing to not be called. The Agent must not make calls to residences using an automatic telephone dialing system, any artificial devices, or a prerecorded voice. FEDERAL FAIR HOUSING ACT The Agent shall fully support all federal, state, and local fair housing laws. The Fair Housing Act prohibits discrimination in housing because of color, national origin, religion, sex, familial status, and handicap (disability). All display ads including flyers must have the REALTOR logo, Equal Housing Opportunity logo, and the Company logo. Business cards must be ordered at the Agent s expense and through a Zing Realty approved vendor. REGULATION Z The Agent shall comply with Regulation Z when advertising specific financing options. When advertising the down payment, interest rate, loan term, or monthly payment, the Agent must include in the ad the total down payment, annual percentage rate, number of years in the loan, and what the monthly payment includes (PITI, PIT, PI). Regulation Z also requires that the APR must be displayed in at least the same size type as the interest rate whenever an interest rate is included in an advertisement. If a federal agency brings charges of violating Regulation Z against the Agent, TREC may also take administrative action against the Agent. REAL ESTATE SETTLEMENT PROCEDURES ACT The Agent shall comply with Real Estate Settlement Procedures Act (RESPA) guidelines. Violators of RESPA may receive harsh penalties, including triple damages, fines, and even imprisonment. While the enforcement of RESPA by the US Department of Housing and Urban Development, or HUD, has been dormant in the past, HUD has stepped up its efforts to ensure agents are complying with RESPA. When doing joint advertising with an affiliate, the Agent and the Affiliate shall have a written agreement between themselves stating that payment of all advertising will be proportionate with the advertising space taken by each party. 17

18 USE OF SOCIAL MEDIA Agent shall mean a licensed real estate agent employed by or affiliated with the REALTOR. Users shall mean individuals visiting the social media sites of Agents. Social Media as used in this policy shall apply to both activities at the Agent s web sites (e.g. blogging) and use of third party social media tools (i.e. Facebook, Twitter, LinkedIn, etc.). Because there already exist hundreds of different Social Media tools which may be utilized by the Agent and more are constantly being created, the provisions of this policy are to be interpreted generally to apply to the types of interaction the Agent has with the social media service rather than to specific web sites and providers. Notwithstanding anything in this policy, it remains the responsibility of the Agent to comply with the requirements of local, state, and federal law and the Code of Ethics of the National Association of REALTORS. The scope of this policy shall extend to all uses of social media in connection with the real estate business. (Use in connection with the real estate business would include any use in which the Agent seeks to promote or capture real estate business from consumers or other Agents). This policy is not intended to cover the activities of the Agent falling completely outside the real estate business; however any conduct which reflects adversely upon Zing Realty, its Brokers, and/or its Owners may be reviewed under the terms of this policy. Whenever identification is required by this policy it shall include the following: a. Name/Logo of Zing Realty b. Name of its Broker or Brokers c. Address of the Zing Realty office with which the Agent is affiliated d. Phone/Fax/ of the Zing Realty office e. Name of the Agent responsible for the web site f. State of licensure g. An agent affiliated with a Team may also include the name of that team. h. Phone/Fax/ of Agent or Team responsible for the web site i. Any other requirements mandated by state law/regulation j. Any additional Zing Realty identification requirements In addition, the Agent must include his/her name and/or team name with the Zing Realty name. They should be separated by a hyphen. Examples of acceptable titles are Zing Realty Susie Agent. Not acceptable is Zing Realty Arrowhead or just Zing Realty. Blogging The Agent shall be responsible for compliance with all laws and regulations governing real estate business including fair housing, antitrust, and real estate license laws and regulations. a. Where identification is required the same items of identification listed in the Internet policy shall apply or b. Where identification is required, at a minimum the following elements shall be disclosed (see list above to select) The Agent shall be responsible for informing Zing Realty (and obtaining approval) of any blogging maintained by the Agent and the Agent must provide Zing Realty with information necessary to subscribe to the blog. site 18

19 Terms of Use a. The Agent is responsible for establishing the process for governance of the blog by posting terms of use for the blog. i. The Agent shall use the terms of use for Zing Realty for blogs; or ii. The Agent shall create terms of use and allow them to be reviewed by Zing Realty prior to launch of the blog. iii. The Agent shall make the terms of use available to Zing Realty upon request. b. The terms of use shall include: i. The User shall abide by any legal requirements related to the use of the blog and the site s terms of use for the blog including specifically its privacy policy. The User shall be responsible for his/her conduct on site. ii. The Agent must obtain clear authority from the User to utilize anything the User includes on the site. iii. The Agent must prohibit the unauthorized use of third party content or the posting of any unlawful or objectionable materials. iv. The Agent must prohibit the use of the site to harass or stalk anyone. v. The Agent must prohibit the posting of content which infringes on the rights of any third party. vi. The Agent must prohibit the posting of content which expresses a preference based upon an individual s membership in a protected class. vii. The Agent must provide a take-down policy in the event any such materials are posted to the site. viii. The Agent must disclaim responsibility for any third party sites linked to through the site. ix. The Agent must generally disclaim and limit any liability arising from the content of the site whether provided by the Agent or the User. x. The Agent must provide a privacy policy consistent with that used by Zing Realty. The Agent shall not pay or provide anything of value to another party in consideration of comments placed on the blog. If the Agent does allow comments to be posted in return for consideration, the the Agent must disclose that compensation has been received. Identification a. The Agent shall identify himself/herself when establishing a blog in such a way that users of the blog shall know the Agent s name, his/her status as a real estate licensee, and his/her affiliation with Zing Realty. b. In any posting related to Zing Realty, the Agent shall assure that the Agent s relationship to Zing Realty is clear so as to avoid violation of the FTC rules. c. The Agent shall not participate in the blog of another party without disclosing his/her identity and Zing Realty. Responsibility for Maintenance a. All blogging must be monitored by the Agent for false/defamatory/demeaning/degrading comments at least once per week. b. The Agent is responsible for removing or clarifying any comment if the Agent knows that it is false or misleading. The Agent is responsible for assuring that the content and operation of the blog conform to the standards established in the Code of Ethics. 19

20 Zing Realty must be notified of any offer of compensation to the Agent for real estate related services communicated or established through the blog. Use of Third-Party Social Media Sites (Facebook, YouTube, Twitter, etc.) There are hundreds of providers of social media services in which real estate agents may participate. The purpose of this policy is to provide guidelines to both the Agent and Zing Realty for legal liability risk management and to protect both the Agent s and Zing Realty s reputation and good will in the community. Like with blogging, the scope of this policy is intended to relate to use of social media in connection with the real estate business, but regardless of the social media service being used, when related to the real estate business, the Agent should observe these guidelines. The Agent is required to read and be familiar with the policies and requirements of any site on which he/she participates and to comply with the requirements of that site. In particular, the Agent should know the privacy practices and policies of the sites. Where options are provided, the Agent shall/may select an option which provides a level of protection to the Users of the Agent s social media site consistent with the level of protection afforded by Zing Realty at Zing Realty s web site. The Agent should remain aware that items posted on social media sites may be forwarded or used for purposes other than originally intended. The Agent should be aware of this when making decisions as to what to include on his/her social media sites. Posting of Professional Contacts/Qualifications (e.g. LinkedIn) 1. The Agent is responsible for assuring that any listing of qualifications, credentials, or training contained on the site is current, accurate, and not misleading. Any changes to the foregoing shall be promptly revised on the site. 2. The Agent shall not falsely claim association with any person or group. 3. Notwithstanding any provision herein, the Agent remains responsible for complying with the license laws and regulations governing the conduct of licensees and all applicable local, state and federal laws. 4. The Agent is responsible for assuring that the content conforms to the standards established in the Code of Ethics. Posting of text (i.e. Facebook, MySpace, Twitter) 1. All text shall be the Agent s own and not plagiarized or copied from another party without that party s permission. This shall not prohibit the use of reasonable quotations from the writings of others or writings for which the Agent has received permission to use or using writings consistent with the practices of the site (e.g. retweeting). No content which infringes the rights of any third party may be used. 2. The Agent may not write regarding the listings of other licensees within Zing Realty. 3. The Agent may not write regarding the listings of other brokerages. 4. The Agent shall assure that writings do not contain unauthorized disclosures of confidential information of clients, customers, or Zing Realty. 5. The Agent is responsible for assuring that the use of the site is consistent with the Code of Ethics, local, state, and federal laws and all applicable real estate license laws and regulations including where necessary identifying the Agent. 20

21 Posting of comments to social media pages of others 1. Any statement regarding Zing Realty shall clearly disclose the Agent s relationship to Zing Realty. 2. The Agent shall disclose his/her status as a real estate professional as a part of any real estate related statement. 3. The Agent may not accept compensation for placing a comment on a site. 4. The Agent is responsible for assuring that the use of the site is consistent with the Code of Ethics, local, state, and federal laws and all applicable real estate license laws and regulations, including where necessary identifying Agent. Posting of photos (Flickr) 1. The Agent is responsible for assuring that he/she is authorized to use any photo posted to the site (to avoid copyright issues). 2. The Agent shall secure permission to post for marketing purposes the image of another person on the site. 3. If the Agent materially alters an image in any way, the Agent must disclose the image has been altered. 4. The Agent is responsible for assuring that the use of the site is consistent with the Code of Ethics, local, state and federal laws and all applicable real estate license laws and regulations including where necessary identifying the Agent. Posting of audio/video (YouTube) 1. The Agent is responsible for assuring he/she is authorized to use any audio/video posted to the site (to avoid copyright issues). 2. The Agent shall secure permission to post for marketing purposes the image of another person on the site. 3. If the Agent has altered an image in any way, the Agent must disclose the image has been altered. 4. The Agent is responsible for assuring that the use of the site is consistent with the Code of Ethics and all applicable real estate license laws and regulations including where necessary identifying the Agent. 21

22 SECTION 3 INSURANCE AND FINANCIAL 22

23 ERRORS AND OMISSONS INSURANCE Zing Realty carries comprehensive Errors and Omissions (E & O) insurance coverage. This coverage provides varying degrees of protection against claims for professional services. Should a claim be filed that is not covered by Zing Realty s E & O policy, the Agent agrees to defend, indemnify, and hold harmless Zing Realty, its Brokers, and its Owners against all claims that may arise from the claim. In addition, the Agent agrees to reimburse Zing Realty for all costs, fees, and judgments for the uninsured claim. In the event the Agent is served with a lawsuit, threat of a lawsuit, or a complaint before the Texas Real Estate Commission and/or the Texas Associations of REALTORS Professional Standards Committee, the Agent shall notify Zing Realty immediately. All deductibles and judgments not paid by the E & O insurance carrier shall be the sole responsibility of the Agent. The deductible is due and payable by the Agent at the time a claim is received. If two or more Zing Realty Agents were involved in the transaction (not necessarily named in the lawsuit), the deductible is to be divided proportionately between the Agents. The Agent hereby acknowledges that there is not E & O insurance coverage for certain types of transactions including, but not limited to, Business Opportunities, Property Management, and Auctions. In addition, the Agent hereby acknowledges that there is no E & O insurance coverage when the Agent sells undeveloped land (vacant land) where he/she has an ownership interest, the Agent is the tenant or landlord in the lease agreement, or the Agent is selling commercial property in which he/she has an ownership interest. The terms and conditions of the coverage are subject to change. An E & O insurance fee, or risk reduction fee, is due and payable by the Agent on each transaction even if there is no commission involved. In the event there is no commission paid at close of escrow, the Agent will be responsible to pay the risk reduction fee to Zing Realty. Should the Agent fail to pay the fee, his/her account with Zing Realty will be charged the appropriate fees. If Zing Realty is notified that there may be pending litigation or arbitration regarding a transaction, Zing Realty has the right to hold all of the commissions due to the Agent until such time as the litigation or arbitration is settled or dismissed. The Agent further understands the Agent is liable for all expenses and any settlements assessed against Zing Realty, its Brokers, or its Owners due to the Agent s actions. When an agent files a suit for commissions, it is not uncommon for a counter suit to be filed against the company and the agent involved. The Agent agrees to defend, indemnify, and hold harmless Zing Realty, its Brokers, and its Wwners from any costs or liabilities precipitated by the filing of the commission claim. Zing Realty reserves the right to demand a $10, deposit prior to allowing a commission suit to be filed. Should the Agent fail to correct any requested items noted by Zing Realty, the Agent will need to complete a Missing Paperwork Acknowledgement that states the Agent understands that Zing Realty reserves the right to NOT submit any claim to the E & O insurance company and that his/her deductible may be twice the current deductible amount, should a claim be received. Zing Realty is very strict about the Agent completing all files and submitting all requested documents prior to the close of escrow. 23

24 SALE OF AGENT-OWNED PROPERTIES Zing Realty permits the Agent to list and a sell 1-4 unit residential property in which the Agent has an ownership interest and title is held in the Agent s name. The title cannot be held by a corporation, partnership, or other entity. Zing Realty s Errors and Omissions policy does have coverage for these properties as long as the following requirements are met in addition to all other documents required by Zing Realty. 1) The Seller Property Disclosure Statement signed by Seller and acknowledged by Buyer, prior to the close of escrow. 2) The One to Four Family Residential Contract (Resale) is used. 3) A home warranty is placed on the property at the close of escrow or the Buyer has checked the box on the contract declining the home warranty and initialed that page of the contract. 4) A home Inspection performed by a licensed home inspector or the Buyer must waive the home inspection in writing. 5) The Zing Realty form titled Owner Agent Addendum to the Purchase Contract has been completed. If the above requirements are met, Zing Realty s E & O insurance policy provides for coverage, with limitations set forth in the insurance policy, for the Agent acting as an agent in the transaction. There is no insurance coverage for the Agent acting as a principal in the transaction. The Agent may not enter into limited dual agency relationships on Owner/Agent sales but rather represent himself/herself only and use the Zing Realty form titled, Declination of Representation. Properties that do not meet the above criteria must be listed through another agent other than the Owner/Agent. In addition, there is no E & O insurance coverage for the Agent when he/she is a principal/buyer in a transaction where he/she is representing himself/herself, when the Agent is the Listing Agent selling vacant land in which the Agent has a financial interest, when the Agent is the Listing Agent selling a commercial property in which the Agent has a financial interest, and when the Agent is the Listing Agent leasing a property in which the Agent has an ownership interest. Should a claim be made on any of these transactions, the Agent acknowledges that he/she responsible to defend and indemnify Zing Realty against all claims and expenses incurred by Zing Realty. Should a claim be made on an Owner/Agent transaction, the Agent s deductible shall be $10, and shall be due and payable to Zing Realty when the claim is made. INSURANCE REQUIREMENT WHEN LISTING REAL ESTATE OWNED BY A LENDER (REO) PROPERTIES Should the Agent elect to list Real Estate Owned (REO) or bank owned properties, the Agent must provide additional coverage and sign the Addendum to the Independent Contractor Agreement (ICA) titled Addendum to the Independent Contractor Agreement, REO/Bank Owed Sale. 24

25 COVENANT TO COOPERATE In the event of any claim concerning a transaction involving the Agent either directly or indirectly, the Agent agrees to cooperate fully in providing documents, testimony, and other items that may be needed to defend a complaint, as may be deemed appropriate by Zing Realty or its legal advisor. This covenant shall survive termination, whether voluntary or involuntary, and is without time limitations. Remedies for the failure to comply with this provision could include the Zing Realty seeking full restitution as a result of the non-compliance in a tribunal of Zing Realty s choice. In addition, the claims will have risen from a breach of contract and therefore Zing Realty will be entitled to recover reasonable attorney fees. AUTOMOBILE INSURANCE COVERAGE The Agent agrees to maintain automobile insurance with Zing Realty listed as an additional insured. Should the Agent be involved in an automobile accident with a client or customer in his/her vehicle, the Agent agrees to immediately notify Zing Realty and its insurance carrier. Due to the potential for increased liability to the Agent because of the use of cell phones while driving, the Agent is urged and encouraged to stop driving while talking on his/her cell phone. PERSONAL PROPERTY INSURANCE Zing Realty has comprehensive General Liability for the office facilities. However, Zing Realty s insurance does not cover the loss or damage to the Agent s personal property. Therefore, Zing Realty urges the Agent to provide insurance on his/her personal property as well as for his/her automobile and liability insurance as provided for in the Independent Contractor s Agreement. It is prudent for the Agent to acquire sufficient insurance to protect all personal effects kept in the office or used as part of the Agent s resources. Considering the cost of computers, tablets, palm pilots, pagers, cell phones, daily time managers, and other tools, this could be a very expensive loss. Zing Realty shall not, under any circumstances, be held liable for the loss, theft, or damage to Agent s personal property. ZING REALTY STATEMENTS AND BILLING Statements are ed quarterly on March 15th, June 15th, September 15th and December 15th. All statements are due no later than the fifth day of the following month. If payment is received after the fifth day of the following month, the bill will be considered delinquent and a late fee of $25.00 shall be added to the Agent s statement. An Agent who does not keep his/her account current is subject to either withholding of commissions, payment through commissions, or, in the case of repeated delinquencies, immediate termination. Should a transaction close escrow and Zing Realty fees are not paid to Zing Realty at the close of escrow, the Agent will be invoiced on their monthly statement for any transaction or risk reduction fees due Zing Realty. 25