Policies and Procedures

Transcription

1 Policies and Procedures Thank you for the opportunity to serve you as part of the Solid Source Family! This manual was written to provide details on the brokerage policies and procedures, which are in addition to the requirements that each of us have according to the real estate license we were issued by the GA Real Estate Commission. Please contact our broker staff any time we can answer questions or be of service. Licensee s affiliation with Broker confirms agreement to the terms and conditions contained in this manual. As stated in the Independent Contractor Agreement, Licensee or Broker may terminate affiliation at any time, including if the terms and conditions are not acceptable. As an independent contractor, it is each Licensee s responsibility to maintain current awareness of the rules, regulations and/or laws of the Georgia Real Estate Commission, Federal, State and Local laws and regulations governing the real estate industry, Code of Ethics, Regulation Z, Fair Housing, BRRETA, RESPA, HUD, IRS, Truth in Lending, MLS, FMLS, Consumer Financial Protection Bureau and The S.A.F.E. Act. It is also every Licensee s responsibility to pursue education regarding all of these rules and regulations on a continual basis. This manual may be updated, changed or revised from time to time at Broker s discretion. It is the Licensee s responsibility to review Policies and Procedures regularly to maintain awareness of Broker s requirements of affiliation. Copyright Solid Source Enterprises

2 Term Definitions in this Document: Solid Source Realty, Inc. is hereinafter referred to in this document as Broker. An affiliated real estate licensee is hereinafter referred to in this document as Licensee. The rules, regulations and laws of the following governing authorities: Georgia Real Estate Commission, Federal, State and Local laws and regulations pertaining to the real estate industry, Code of Ethics, Regulation Z, Fair Housing, BRRETA, RESPA, HUD, IRS, Truth in Lending, MLS, FMLS and The S.A.F.E. Act, is hereinafter referred in this document as Governing Authorities and/or Governing Authority. Board of Realtors Within 15 days of affiliating with Solid Source Realty Inc., a Licensee will become and remain a member of a local Board of REALTORS in which Solid Source Realty Inc. is a member. Licensee agrees to adhere to the Code of Ethics of the National Association of REALTORS. Solid Source Realty Inc. Licensees have permission from NAR to use the term/word REALTOR or any designations that Licensee earns through the National Association of REALTORS. The REALTOR mark means membership in the National Association of REALTORS. NAR licenses to its members the right to use the REALTOR mark to identify themselves and his/her real estate businesses as members of the NAR. Domain/ regulations: In a domain name/ address, the NAR allows members to use the REALTOR marks with a member s name (i.e. johndoerealtor.com or johndoerealtor@aol.com) and with the complete name of a Broker s real estate company (i.e. abccompanyrealtors.com, abccompanyrealtors@aol.com). NAR does not allow members to use the REALTOR marks with descriptive or geographical terms (i.e. number1realtor.com, atlantarealtor.com). Copyright Solid Source Enterprises 1 P age

3 Commission Maintaining a reasonable commission structure is a priority. There are several reasons that Broker fees remain reasonable in spite of inflation and other rising economic costs. Solid Source has been debt free since the day we opened. Costs are measured by considering time and resource allotment. Additional services are only charged to those who use them. Commitment to this reasoning has allowed the firm to stand strong during even the toughest economic times. For those who confirm transaction paperwork is in the online system on time, pay monthly dues on time, and update the listing services on time, you may never incur any of the additional service charges paid by those who need assistance in one or more of these areas. Commission plan fees are designed to accommodate standard transactions. Standard transactions have the following criteria completed by the Licensee: Earnest Money is handled according to contract terms Transaction paperwork is confirmed present in the online system of Broker within stated timelines that allow Broker to comply with GREC regulations Communication is maintained with the client and other involved parties Listing service(s) are updated within compliance timelines Online Commission Report is completed and HUD-1 is reviewed for accuracy When staff time is required to meet the standard transaction criteria, additional fees may be incurred, at Broker s discretion. Thank you in advance for your commitment to protect your license and the license of Broker. Commission Plan Options Broker offers commission plans that include GAMLS service and those that do not include GAMLS service. If Licensee chooses a commission plan that does not include GAMLS, monthly fees are $15/month less than the commission plans that include GAMLS. Licensee may request to be considered for the Platinum Commission Plan. Consideration will be given based on review of Licensee s previous transactions. Transaction fees for the new plan will go into effect the 1 st day of the month following payment of monthly dues associated with the new plan. There is a $50 charge to switch to the GAMLS office from the non- GAMLS office. This charge is to hopefully deter excessive work imposed on Broker for Licensees switching back and forth. Newly Licensed Agents The Newly Licensed Agents Commission Plan is required for Licensees who have not yet closed three sales transactions as a licensed agent. Licensee will be reimbursed up to $250 for post-license education upon completing the third transaction on the 70%/30% plan, detailed on the Independent Contractor Agreement. Newly licensed agents are encouraged to connect with staff brokers by phone or in person when preparing to meet with buyers, preparing for a listing appointment, scenario role play discussions and contract preparation. Broker encourages agent to attend trainings, tune in to the sales meetings and watch the Agent Success Program series available at Broker s online system 24/7 to better prepare the Licensee for real estate challenges and opportunities. Copyright Solid Source Enterprises 2 P age

4 Gold and Platinum Commission Plans Licensee is paid by Broker in accordance with the monthly dues paid by Licensee. The Licensee s name on the contract is used to determine the transaction fee. Licensee agrees not to falsify a contract by stating that a different licensee represented a client, than the Licensee s name/signature on the contract. This is a GREC violation and exposes Licensee and Broker to unnecessary liability. Only commission received by Broker will be distributed by Broker. Residential Referrals & Commission Splits with another Affiliated Licensee of Broker If Licensee shares a commission through a split or referral with another affiliated Licensee of Broker, there are two fees paid. The licensee whose name is on the contract pays the transaction fee associated with his/her monthly dues and the licensee who receives the referral and/or commission split pays a referral transaction fee of $100. Residential Transactions Requiring Broker Signature There are several organizations including but not limited to banks, government entities, relocation and referral companies that now require the Qualifying Broker s signature on transaction paperwork, instead of the Licensee s signature. This is a concern. Since the Qualifying Broker is not checking on properties in person, receiving and/or submitting offers first hand and/or is not doing the research for BPOs, the liability exposure for Broker increases significantly. The required signature places complete liability on the Qualifying Broker, which in turn places unnecessary risk on the firm. It is for this reason that master listing agreements in which the Qualifying Broker s signature is required are not authorized. Other agreements regarding a single home sales transaction will be considered on a case by case basis. Licensee agrees to request from Qualifying Broker a review of relocation and/or other transactions that require the Qualifying Broker s signature before committing to participation. The Qualifying Broker will review and subsequently approve or deny participation in writing to Licensee within three business days. If no answer is received in writing by Licensee, the default answer is no, the transaction will not be approved for participation by Broker. The final commission split amount will be determined at the Qualifying Broker s discretion when the transaction is complete and the amount of additional time spent by the Qualifying Broker to complete the transaction can be considered. Residential Lease Transactions The fee for lease transactions is $ for Platinum and Gold commission plans. Signed lease agreements should be turned in within five days of binding date. Transaction fees are due whether representing a client or participating in Licensee s own rental property. Broker must review all documents, even for transactions in which the Licensee is a principal. Most Lease Listing Agreements provide that the landlord shall pay the Lease Listing Broker a commission upon receipt of the first month s rent and the Lease Listing Broker then shares this commission with the co-op broker. Therefore, the tenant cannot pay the commission unless specifically stipulated and signed by all parties. Thank you for taking the time to confirm that the lease agreement states accurately how you will be paid. To avoid the 21-day delay in disbursement of funds paid by personal check, request that the Landlord pay the commission in certified funds. BPO Commission (Broker Price Opinion) The minimum BPO transaction fee is $25 per BPO. Broker does not permit Licensee to be paid direct for commissions, including but not limited to BPO payments. Broker does not provide E & O insurance coverage for BPO(s). A copy of each BPO is to be submitted to Broker for review before submitting to client. BPO Copyright Solid Source Enterprises 3 P age

5 Information Form may be requested from Broker before disbursing commission. Broker-to-Broker Referrals Broker-to-Broker Referrals are to be in writing and it is the Licensee s responsibility to inform Broker of payment amount committed to the referring Broker upon closing the transaction. If there is a mistake made by Broker or Licensee during commission disbursement and the referring Broker is not paid quickly, Licensee agrees to immediately return to Broker the commission that should have been paid to referring Broker. Licensee understands that accepting and/or agreeing to work with a client in which a referral agreement is involved constitutes a debt to pay the referring broker. Licensee agrees to pay for all legal expenses and settlement charges incurred by Broker and Licensee, for Broker to collect the incorrectly distributed amount of commission, if the agreed upon referral amount owed to referring broker is not kept out of Licensee s commission. Commercial Transactions Licensee understands that Broker does not participate in all types of commercial and/or other transactions that do not qualify for a residential home loan. The Independent Contractor Agreement has the specific information regarding the commission split and requirements for the broker to participate in commercial transactions. The commission split is different in commercial transactions due to the exposure, potential liability and risk in every transaction. Licensee is to summarize the opportunity in writing to the Qualifying Broker and only commit Broker to participate in a commercial transaction upon written approval from the Broker. Information that should be included in the written summary turned in for review by the Qualifying Broker includes but is not limited to: 1. Property Address 2. List Price or Price Range for buyer or tenant 3. Is the Broker being asked to represent the seller, buyer, landlord or tenant? 4. How was Licensee introduced to prospect? 5. How long has Licensee known prospect? 6. What type of property is involved in this transaction, i.e. office park condo, stand-alone bank building, 50 acres of land, church building, strip shopping center, etc.? 7. How is the property currently zoned? 8. Name the commercial listing service(s) Licensee will use to locate or list property? 9. Does Licensee currently or has Licensee had in the past a membership with the listing services named in Question 8? 10. Is potential client an institution, individual and/or entity, i.e. LLC? 11. How many commercial transactions has Licensee participated in within the last: a. 1 year? b. 2 years? c. 5 years? 12. In how many commercial transactions has the potential client participated? 13. How long has Licensee been affiliated with Broker? 14. Has Licensee reviewed the Independent Contractor Agreement regarding commercial transactions? 15. Does Licensee understand and agree to submit all commercial transaction paperwork to the Qualifying Broker before committing Broker to the transaction and/or opportunity? 16. Has the Licensee committed verbally or in writing to prospect anything on Broker s behalf? Copyright Solid Source Enterprises 4 P age

6 17. Does Licensee understand and agree that the commission amount listed on the Independent Contractor Agreement is due to Broker, regardless of the amount charged/collected during transaction? FMLS Charge There may be a time in the Licensee s opinion that the FMLS charge is not due, however the FMLS charge is collected by Broker. FMLS frequently bills for transactions that should have been paid, but were not, from up to 6 months previous. Licensee agrees to be familiar with FMLS policies. Due to the time it takes to track, research, and/or refund, Broker s policy is that if the property is in an FMLS compulsory area and the listing broker is an FMLS member, the FMLS charge is payable to Broker from Licensee from the commission received. Examples of transactions that may not incur the FMLS charge are: Representing buyer who is purchasing a For Sale By Owner Property listed in GAMLS only that is located in a non-compulsory area for FMLS Listing company is not a member of FMLS and property is only listed in GAMLS New construction home when binding agreement date is documented prior to sheetrock Commercial and land listings are not required to be listed in FMLS, however if it is in FMLS, the fee will be collected If the property was listed by an FMLS member broker within 60 days of the offer date, an FMLS fee is also collected Additionally, Licensee understands properties which are FSBO upon closing, but listed in FMLS within 60 days of offer date, will also incur an FMLS charge. This is due to FMLS history of tracking for reverse prospecting and finding that licensees may have entered the property initially when it was listed in FMLS, which is subsequently billed for by FMLS upon tax record review. It is the Licensee s responsibility to ensure all listings that are required by FMLS regulations to be in the service are entered according to FMLS required deadlines. If a residential closing occurs with a listing in a compulsory area that has not been entered into FMLS, an administrative fee will be charged to the Licensee and the property will still have to be entered into the system after the closing to comply with FMLS regulations. Non-Attorney Check Payments To avoid the 21-day hold on personal checks before disbursement, ask payer to provide certified funds. Funds subject to a twenty-one (21) day hold include personal checks, brokerage checks from small (less than 100 agents) real estate organizations or LLCs, non-attorney checks and reimbursement checks. This policy was put in place due to the amount of NSF checks made payable to Broker that were uncollectable without pursuing legal action, which Broker desires to avoid. Consideration for waiving the twenty-one (21) day hold will be given if Broker receives a copy of the front and back of the check showing the paid endorsement of both the payer and payee s financial institution. Copyright Solid Source Enterprises 5 P age

7 Accounting Monthly Dues Invoices and statements are sent monthly by . In order to facilitate automatic billing, licensees are required to have a credit card, debit card or bank account for ACH payment on file. Any changes to account or credit card information should be updated by Licensee in Broker s online accounting system by the first (1 st ) day of any month for change to go into effect before the billing cycle takes place. All payments made from Licensee to Broker by credit or debit card will incur a 2.5% convenience fee on the amount paid. If dues or commission plans change for any reason, Broker will notify Licensee by address on file in Broker s online accounting system, which may be changed by Licensee at any time. Dues and fees can be paid yearly in advance, by credit card, debit card or bank account ACH payment, however a credit card, debit card or checking account is still required to be on file in order to cover incidental charges, including but not limited to FMLS or GAMLS charges. Broker collects scheduled payments on the 15 th or the business day after the 15 th if it falls on a weekend, monthly. Payments for FMLS, GAMLS and/or late payments may be collected any time. Funds must be available on the date invoice balances are collected or a $50 administrative fee will be imposed regardless of whether or not Licensee notifies Broker. If for any reason funds will not be available in designated account, it is the Licensee s responsibility to pay account balance in full by the fifth (5 th ) of the month to give accounting staff the necessary time to stop the automatic deduction. Licensee understands that license may be deactivated immediately by Broker should account not be paid in full within five business days of due date. If Licensee affiliation is terminated due to outstanding balance, Licensee will not be able to re-join Brokerage. There is an additional fee as determined by Broker on all commission payments to Licensee if balance is past due. FMLS/GAMLS Compliance Fines FMLS & GAMLS have regulations that include for example required and prohibited wording, specific deadlines for status updates, pictures of the property, and paperwork. If there is a compliance violation, FMLS and GAMLS notifies the listed in each system for the Licensee, which the Licensee can update any time. If the compliance violation is not addressed, Licensee is financially responsible to the Broker if a fine is incurred due to the Licensee s action, negligence, forgetfulness or lack of response. The amount of the fine, plus an eight dollar ($8) Broker administrative fee, is added to the Licensee s monthly bill. Policies, Rules and Regulations of each service is listed on the website of the listing service. It is Licensee s responsibility to resolve any questions, disagreement or issues with the listing services directly. Garnishment, Child Support, IRS, Commission Advances from Previous Companies, Student Loan Defaults or Other Deductions O.C.G.A. Section (l) If Broker receives notice on any type of debt due by Licensee, Broker will provide Licensee notice that the balance must be resolved and/or retracted within 72 hours to remain affiliated with Broker. Thank you for understanding. Copyright Solid Source Enterprises 6 P age

8 Licensee Commission Paid to another Entity O.C.G.A. Section (b) (17) (c) If Licensee prefers to have commissions paid by Broker to an entity in which the Licensee meets the ownership percentage and other requirements by the GA Real Estate Commission, Licensee agrees to submit paperwork required by Broker at least five business days before change is expected. Licensee agrees not to change the information in Broker s online accounting system to any name that is not listed with the GA Real Estate Commission as affiliated with Broker. Broker will use the Licensee s social security number for 1099 purposes which includes all commission paid to Licensee. If Broker changes the name checks are issued to, after Licensee has turned in all necessary entity information, the tax ID from the new entity being paid will replace the SSN for checks issued to Licensee from that day forward. It is Licensee s responsibility to inform Broker of any mistakes, changes and/or updates regarding how checks are to be made payable to Licensee and 1099 allotments. Copyright Solid Source Enterprises 7 P age

9 GREC Regulations & Broker Policies on GREC Subjects GREC Rules and Regulations governing the following subjects can be reviewed on the GREC website at The Georgia Real Estate Licensing and Appraiser Laws and Regulations Annotated book can be purchased at Earnest Money Important: Only one Solid Source company holds earnest money to avoid errors. If you prefer Broker to be the holder of earnest money, Solid Source Realty, Inc. is the designated company that will hold earnest money for Broker. Solid Source Realty GA does not hold earnest money. Licensee understands the urgency of Broker having the contract or offer available to review at the time earnest money is turned in. GAR and RE contracts state that the holder of the earnest money must immediately notify all parties if it is not submitted according to contract terms. Terms include the correct holder (Solid Source Realty, not Solid Source Realty GA) receiving the funds within the contract stated time requirement. Solid Source must see the contract terms to be aware that notice needs to be given, thus complying with the legal obligation that is assigned upon choosing Solid Source Realty as the earnest money holder. The closing attorney continues to be a great option to hold earnest money. Using the closing attorney also makes the disbursement of earnest money, should the contract terminate, the responsibility of the closing attorney. If a client is not getting the earnest money back, many would rather that decision be made from an attorney and not a real estate firm. The only way Broker can confirm the earnest money is compliant to the contract terms is to see the contract terms. Licensee is responsible to confirm the following in every transaction that Solid Source Realty is elected to hold earnest money: Contract states Solid Source Realty (not Solid Source Realty GA) is the earnest money holder. Contract or offer is uploaded in TMS before earnest money is submitted by client at or submitted with the earnest money paper check if dropped off at Broker s Corporate/Roswell office. Licensee agrees to the following delivery methods if Solid Source Realty, Inc. is elected in the contract as the earnest money holder: o Licensee and client receive confirmation that earnest money was paid through website, or o Licensee personally brings check and contract to Broker s Roswell office, or o Licensee uses overnight mail with confirmed delivery to Broker s Roswell office If Licensee cannot adhere to the checklist above in a transaction, please have the closing attorney or other brokerage hold the earnest money. Please do not trust that the client or other agent putting a check in the mail today will arrive via snail mail to comply with contract terms. Earnest money issues have severe consequences by GREC and it is expected that Licensee will use extreme care to confirm contract terms are met. Copyright Solid Source Enterprises 8 P age

10 Earnest Money, continued Thank you for your commitment to handle earnest money with care. Also, a friendly reminder that ing the contract or offer to the pendingcontracts@solidsource.com address places it in an box queue that staff uploads on a first in, first out basis. It is fine to use for contracts when Solid Source Realty is not the earnest money holder, but please upload the contract directly to TMS so it will be available for review when the earnest money is processed. Review the short video on how to upload documents at Earnest Money Amendments An amendment is required to be signed by all parties if the earnest money is not submitted as stated on the contract. Examples of amendment language to correct errors in contract terms regarding earnest money include: Example #1: "All parties acknowledge that the earnest money holder has changed from Solid Source Realty GA to Solid Source Realty. Example #2: "All parties acknowledge that earnest money was submitted on." GREC considers it falsifying a contract when earnest money is not submitted according to contract terms. Please use extreme care to comply with contract terms when committing Broker to be the holder of earnest money in any transaction. Earnest money checks provided as personal checks will not be reimbursed to client or made payable as commission for up to twenty one (21) days from the date of deposit unless a front and back of the cleared check is provided. This policy is in place due to the time it takes for checks to be returned to Broker if deemed NSF. When Earnest Money Exceeds the Amount of Commission To wire the earnest money to the closing attorney, an agreement to disperse trust funds form must be completed, signed by all parties and ed to emrelease@solidsource.com a minimum of 4 business days prior to closing. A wire fee of $50.00 is assessed to Licensee for this service. Requests that do not meet this time frame are considered expedited and a fee of $ is assessed to the Licensee. To avoid this situation, Licensee may choose the closing attorney to hold the earnest money. Release of Earnest Money upon Contract Termination In order for the earnest money to be released, an Agreement to Disperse Trust Funds form must be signed by all parties with disbursement instructions. If all parties cannot agree on the disbursement, an earnest money dispute letter will have to be issued by the holder as per the contract. If Broker is the holder, the Licensee will be requested to complete an information sheet and will be charged a $25 certified mailing/administrative fee. To avoid this charge, please have an Agreement to Disperse Trust Funds form signed by all parties. If there has been no binding agreement and there is a time limit for acceptance, the Licensee should EMrelease@solidsource.com an explanation to request release of the earnest money to the buyer. If there no time limit for acceptance, the Licensee should the signed buyer s notice to withdraw offer or signed seller s notice to reject offer along with the sent confirmation to EMrelease@solidsource.com. All s should include the details regarding the request, including but not limited to the property address, the name and current address of the buyer, the name and telephone number of the Licensee and how the earnest money will be delivered. A wire fee of $50.00 is assessed to Licensee for international release of earnest money. Copyright Solid Source Enterprises 9 P age

11 Earnest Money Violations Earnest Money must be delivered to the Holder as soon as practicably possible to avoid GREC violations. GREC does not consider the money delivered until the money is received by the Holder. It is the Licensee s responsibility to verify the holder has received the earnest money as per terms of the contract. Licensees who do not turn in earnest money per terms of the contract can be fined by Broker, at Broker s discretion. Depending on the severity of the offense, Broker may terminate Licensee s affiliation with Broker. The proper disposition of earnest money is a critical aspect of the conduct of our business. Historically, the mismanagement of trust funds by Licensees and Brokers has been a primary reason for loss of licensure. Any mismanagement of earnest money is taken very seriously by Broker. Advertising It is the Licensee s responsibility to be familiar with and follow the GREC regulations including but not limited to Rule , as published by the Georgia Real Estate Commission regarding advertising. If Licensee acts without written Broker approval or violates copyright laws, Licensee will be financially responsible for ALL legal expenses and administrative costs incurred by Broker to resolve a settlement to violation, which are billed at Broker s discretion. The following are policies and procedures required by Broker in addition to required GREC regulations: ALL advertising must be reviewed and approved in writing by Broker, including but not limited to website(s), business cards, flyers, mass , social media, postcards and signs. Advertising is to be submitted to advertising@solidsource.com for approval. Please allow two business days for review and written approval. Licensee agrees not to use unauthorized pictures or copyright material on any advertising. Licensee will be financially liable for consequences of copyright violations. Broker logos can be found on the homepage of the Broker s online system. Licensees of Broker may only use the Broker logo provided by the company in any type of advertising. Licensee agrees to use Broker s logo only in the proportion offered on website. Broker does not allow mass media advertising of brokerage fees, discounts or rebates. Mass media includes but is not limited to mass , billboards, bus or vehicle, radio, television, and internet. Any advertising material which is misleading, inaccurate or which misrepresents any property, terms, values or policies is an unfair trade practice and is prohibited. Licensees may not advertise for Broker Prohibited Services (see Independent Contractor Agreement) when advertising as a Licensee for Broker. Potential verbiage is NOT permitted as there is no legal definition which clearly defines this term. Copyright Solid Source Enterprises 10 P age

12 Advertising, continued Business Cards are not required by GREC to have the office address or office phone number since the card does not advertise a specific property. Licensee may choose to use office number with personal extension, if an office number is desired. When advertising in any listing services (FMLS, GAMLS, etc.), Licensee shall adhere to the listing service policies, rules and regulations regarding advertising, including commission offered. Coming soon or pocket listings are not allowed. Licensee may NOT use the Broker name, abbreviation for name or any portion of Broker s name in the domain name, URL, key words or metatags of any website or internet advertising, regardless of current affiliation with Broker. If Licensee does use broker name in any of these prohibited places, Broker has the right to require the Licensee to immediately sign over ownership to Broker and pay for any legal fees involved. Only the CEO s original signature on company letterhead will suffice as necessary authorization to override this policy. All advertising including but not limited to: Property flyers, brochures, internet advertising, social media, postcards, s, periodicals, streaming video, prospecting, farming, or offering services must include: o Broker Logo shall appear in equal or greater size, prominence, and frequency as the name or names or logos of any affiliated licensee or groups of licensees. o Licensee s first and last name o Equal Housing Opportunity phrase or logo. o Disclaimer: Please disregard If this property is currently listed with another real estate brokerage. This is not a solicitation. o OPT OUT/Unsubscribe: All Licensees are responsible for maintaining current awareness of SPAM and other laws regarding soliciting through . o Copyright: It is a requirement that Licensee adhere to copyright laws. Blind Advertising (no real estate company mentioned in the ad) is NOT permitted under any circumstances. Agency Disclosure Title 10 Chapter 6A BRRETA requires Licensees disclose agency relationships with clients and customers. Licensee s and Broker s agency relationship to all parties involved in the transaction must be in a written agreement. It is important to disclose agency and the Licensee s role during the initial meeting with any prospect, client or customer. Licensee is required to complete forms needed to comply with BRRETA. This includes but is not limited to Listing Agreements, Buyer s Brokerage Agreements, Customer Acknowledgment Agreement and Permission to Show Unlisted Property Agreement. Designated Agency When two affiliated Licensees of Broker are involved in a transaction, Licensee agrees to disclose designated agency on contract. This is due to Broker representing both buyer and seller in a transaction, but with separate agents, unrelated by team agreement, marriage or family member. Copyright Solid Source Enterprises 11 P age

13 Dual Agency Prohibited Dual agency is legal in the state of Georgia, however Broker does not permit dual agency. This policy protects the licensee and broker from the many potential conflicts of interest related to dual agency. While Licensees cannot participate in dual agency, Licensee may get paid the entire commission in a transaction, depending on contract terms and conditions. In this scenario, Licensee agrees to only provide ministerial acts for the customer, while representing the client. Agent as Principal Licensee must have awareness and complete GREC requirements in every transaction in which Licensee is a principal individually or with ownership in an entity. This includes but is not limited to mandatory additional disclosures in all advertising and documents. Per GREC requirement, Licensee must give Broker notice of all personal transactions and provide Broker with all transaction documents. Transaction fees apply to all transactions, including those in which Licensee is a principal. Licensee agrees to send notification to broker@solidsource.com prior to participating in any real estate transaction as a principal. When acting as a principal, Licensee must fully disclose that Licensee is a licensed real estate agent in the state of Georgia and holds license with Broker as an Independent Contractor in the following: All brokerage engagements, contracts and lease agreements All advertising including but not limited to listing service public remarks section of MLS services, websites, marketing flyers, print ads, internet marketing and social media Non-disclosure of an Agent s license is a violation of License Law and may subject Licensee to release of affiliation by Broker. Broker s Errors and Omissions insurance policy does not cover Licensee in transactions when Licensee is representing him/herself. To confirm coverage, Licensee may choose to be represented by another licensee. In this circumstance, Licensee may negotiate a written referral agreement from agent, if desired. When Licensee is a principal in any transaction, trust funds may not be held by Licensee. This includes but is not limited to security deposits if Licensee owns rental property. Licensee may choose to have Genesis Referrals LLC hold security deposits or have security deposits held by a property management firm licensed by the state real estate commission. Broker does not hold security deposits. Assistants- Licensed and Unlicensed (6) If you would like to use the services of an assistant, Broker must approve the agreement for use of a real estate assistant in writing. Licensee agrees to review GREC rules and regulations regarding duties licensed and unlicensed assistants can perform and to only allow assistants to perform allowed duties. Licensed Assistants must belong to the same firm as the Licensee for whom they are working. Licensee as Qualifying Broker of another Firm Broker does not permit Licensee to be the Qualifying Broker of a different real estate brokerage without an addendum to the Independent Contractor Agreement, dated after August 26, Copyright Solid Source Enterprises 12 P age

14 Broker Prohibited Services The following list of Broker Prohibited Services are outside the scope of real estate services that Broker authorizes Licensee to offer, perform, advise, consult and/or engage on behalf of Broker: Property management, running credit, listing homes for auction, appraisal, remodeling, repairman or contractor services, home inspection, consulting regarding courthouse auction properties, title services, loan origination, Power of Attorney services, short sale negotiation, loan modification, loss mitigation services, services of any kind that require an upfront fee or additional licensure. Under no circumstance is Licensee authorized to participate in any of the Broker Prohibited Services with any person, client, or in a transaction in which Licensee is representing Broker. Broker s Errors and Omissions insurance will not cover any issue in which Broker Prohibited Service(s) were involved by Licensee. Licensee agrees not to advertise any Broker Prohibited Service when representing Broker verbally and/or on the same advertisement with Broker s name or logo. Advertisements include, but are not limited to websites, s, printed advertising, signature pad and/or business cards. Licensee acknowledges and agrees that any participation or cooperation in a Broker Prohibited Service is Licensee acting as an individual and not on behalf of Broker. Licensee agrees that immediate family member will not perform any Broker Prohibited Services in a real estate transaction in which the Licensee represents Broker. Fair Housing Broker conducts business in accordance with all federal, state and local fair housing laws. It is the policy of the Broker to provide equal housing opportunities to all persons according to Fair Housing law, rules and regulations. This includes but is not limited to not making any reference, providing advice or opinion on any subject regarding race, color, religion, sex, familial status, handicap, national origin and/or other protected classes. Licensee shall abide by state and federal guidelines of Fair Housing. It is the Licensee s responsibility to review the Fair Housing Act on a regular basis. If Licensee violates Fair Housing law, rules or regulations, Licensee will be completely responsible for all damages caused by Licensee s actions. Licensee will be responsible for all legal, settlement and administrative fees involved in defending Broker, regardless of Licensee s affiliation with Broker. Governing Authority Awareness Licensee agrees to maintain awareness of all Governing Authority requirements pertaining to the real estate industry. Licensee agrees to pay all damages, administrative costs and expenses, including but not limited to, the full amount of any errors and omissions insurance deductible incurred by Broker to defend or satisfy any claim or judgment due to Licensee s violation of any Governing Authority. Governing Authorities include, but are not limited to the list provided in the section, Word & Term Definitions listed at the beginning of this Document. Broker shall decide amount of commission Licensee will receive, if any, in the event that Broker Policies and Procedures, laws and/or rules are violated or if transaction documents are falsified. Copyright Solid Source Enterprises 13 P age

15 Listings Broker must obtain written permission to advertise any property therefore Licensee is required to upload Listing Agreement within three days of execution. Each Licensee is responsible for preparing an accurate and factual listing agreement. Only information that is known to be true should be included on the listing. Even though Multiple Listing Services may display a disclaimer statement, it does not absolve a Licensee of fraud. Be factual. Licensee is responsible for reviewing and following the rules and regulations of the multiple listing services. All Exclusive Listing Agreements should be entered into the MLS service within the time frame specified by the MLS Service. FMLS requires that all listings in compulsory areas be entered and GAMLS requires that ALL listings entered in FMLS are put in GAMLS. Remember that every person on the warranty deed must sign the listing agreement. There are no exceptions unless the property is being held in probate. If Licensee fails to place a listing on FMLS or GAMLS (if affiliated with GAMLS office), Licensee will be billed an administrative charge for Broker staff to enter the listing, plus applicable fees. If Licensee chooses to pay Broker to enter the listing, it remains the Licensee responsibility to check and correct any errors. Licensee remains fully responsible for all fines and fees incurred by all listing services. Property Management This is a Broker Prohibited Service. Broker does not permit Licensees to practice, administer, manage or offer property management services on behalf of Broker. Performing property management services is outside the scope of services Broker allows, which excludes coverage from errors and omissions insurance. Specifically, Broker permits Licensees to facilitate a lease contract, representing either the tenant or landlord. Licensee may not take applications or participate in offering an opinion regarding the suitability of tenants under any circumstances. Licensee is not permitted to run credit reports, do background checks on tenant(s) or any other function that is considered property management. Rebates A rebate can only be offered through advertising or provided to a client with written permission from the Broker. Full disclosure to all parties in the transaction (including the buyer s lender if financing is involved and the seller s lender if a short sale is involved) is required and the rebate must be on the HUD-1 Settlement Statement. As rebates become debated in a rising number of circumstances, Broker advises Licensee to avoid offering rebates. Referrals O.C.G.A. Section (36) It is a license law requirement to have written consent from the party being referred and to inform such person being referring whether or not the licensee will receive a valuable consideration for such referral. Licensee is required to turn in a signed Referral Authorization and a Broker-to-Broker Referral Agreement for each referral transaction. Copyright Solid Source Enterprises 14 P age

16 Affiliated Business Arrangement Disclosure (ABAD) In order to comply with RESPA, please have the buyer sign Broker s Affiliated Business Arrangement Disclosure. This document describes the business partnerships that must be disclosed between parties. This disclosure is a required document for all residential transactions involving financing and must be submitted with all contracts, regardless of who is being represented. Should a buyer refuse to sign the ABAD, please write on the ABAD, Buyer was presented this disclosure but refused to sign, with your signature and date below the statement. Include the ABAD with this statement with your completed file uploaded in Broker s online system. Security Deposit Procedure for Agent Owned Rental Property When Licensee is a principal in any transaction, trust funds may not be held by Licensee. This includes but is not limited to security deposits if Licensee owns or has any interest in an entity that owns rental property. Licensee may choose to have Genesis Referrals LLC hold security deposits or have security deposits held by a property management firm licensed by the state real estate commission. Broker does not hold security deposits. Licensee agrees to abide by the Georgia Landlord Tenant Act if Licensee owns 11 or more rental properties. Full documentation must be submitted to Broker for all Licensee rental properties. This includes but is not limited to: Genesis Referrals LLC as Security Deposit Holder Amendment Leases and/or lease purchases Addendums and exhibits Move in and Move Out Statements Short Sales Licensees are to abide by the rules of the S.A.F.E. Act and are not allowed to negotiate the terms of a Short Sale. HUD has requirements for Listing Agents and Listing Brokers to follow when participating in FHA short sale transactions. Licensee and Broker are to certify under the pains and penalties of perjury that all of the requirements are followed. HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. Due to this increased liability placed on Licensee and Broker when listing an FHA short sale transaction, Broker does not allow FHA short sale listings. Unfair Trade Practices O.C.G.A. Section Licensee agrees to maintain awareness of unfair trade practices. Broker has complete discretion on what amount of commission, if any, will be paid to Licensee who violates any provision under O.C.G.A. Section Copyright Solid Source Enterprises 15 P age

17 Company Operations Transactions & Required Paperwork Timeline The term transaction shall be defined as the sale or lease of real property or any other agreement where a commission or fee is paid to Broker as a result of the efforts of Licensee performing real estate services offered by Broker. All transaction paperwork including Offers, Contracts, Brokerage Engagements, etc. are to be in Broker s online system within 10 days of offer date. Listing Agreements are to be in Broker s online system within 3 days of execution. Licensee agrees to confirm transaction paperwork meets required timelines by uploading it into the Broker s online system. A short instructional video on how to upload documents to Broker s online system can be found at Regardless of whether documents are uploaded or ed to Broker for staff member assistance to upload, it is the Licensee s responsibility to check the online system during the transaction and before the closing to ensure that all required paperwork is in the system within required timeline. Required paperwork submission timeline: Submit/upload a Purchase and Sale Agreement within 10 days of offer date Submit/upload Listing Agreement within 3 days of seller s signature date Submit/upload all amendments, agreements, agent notes, etc. within 3 days of signature Commissions for transactions received for the first time after closing will incur a fine and not be paid for a minimum of five (5) business days following receipt of complete documentation to allow for thorough file review. Brokerage information, NAID number for HUD contracts, Broker tax id (if applicable), Broker code and firm license number must be correct on all contracts. Corrections can be completed by an amendment to the agreement as soon as possible, but definitely prior to closing. Licensee may use preprinted GAR and RE forms. Broker does not authorize licensee to strike or alter the preprinted language in the forms. If using a different form, licensee agrees to the form to broker@solidsource.com for approval. When using a contract with separate Terms and Conditions, such as the RE form, it is Licensee s responsibility to provide a printed or ed copy of the terms and conditions to client or customer. Agent Availability When a Licensee is unavailable to accept calls and/or respond to s from Broker, clients or the public, the quality of service to the public suffers. In order to maintain a professional level of service the Broker may need to intervene. If an agent does not respond to client and/or the public within one business day, Broker may reassign another agent to accept responsibility for that Listing, Buyer or Transaction. If client/customer is reassigned, the Broker will determine how commission is distributed. Business License Licensee is responsible for obtaining individual business license if required by county of residence. Copyright Solid Source Enterprises 16 P age

18 Contact Information Broker s primary method of communication to Licensee is therefore Licensee is required to maintain a working address with Broker and not unsubscribe to s from Broker or attorney partner. It is the Licensee s responsibility to know information on s from Broker and attorney partner and notify Broker of any changes regarding personal data, such as name, address, cell phone number and/or address. Licensee can update an , phone number or home address by logging on to Broker s accounting system for billing and commissions to change the information. It is also the Licensee s responsibility to notify listing services, Supra, Board of Realtors, if applicable, and the Georgia Real Estate Commission of any changes to contact information within the timelines stated by each organization. Licensee authorizes Broker to share personal data, such as name, address, cell phone number and/or address with affiliated vendors. Confidentiality Broker Intellectual Property and Broker Property, which includes but is not limited to: any and all documents, materials and recordings on the TMS Homepage and all records, files and documents stored on TMS are considered confidential. Broker permits Licensee to use Broker s Property while affiliated as Licensee, but does not allow Licensee to sell, copy, send or use Broker s Property or Broker s Intellectual Property at another brokerage or for the benefit of another brokerage. No individual associated with Broker shall use such information to the advantage of themselves, any other person, firm, partnership, or corporation either during their association with the Company or at any time afterward. Licensee agrees to pay Broker $10,000 (ten thousand dollars) per violation of this policy or the actual amount of damages, whichever is more. Do Not Call Lists Licensee agrees to abide by the laws governing the do not call list. Duty Licensee s affiliation with Broker constitutes a duty of required performance by Licensees to operate within the requirements of Broker and Governing Authorities. Licensees violating any regulations of Governing Authorities constitutes a breach of Licensee s obligations to Broker. Licensee has not relied on any warranty or representation written, printed, orally expressed, or implied by Broker as to potential success in real estate. Licensee agrees to present themselves in a manner that is conducive to meeting the public and presenting a professional image. Errors and Omissions (E&O) Insurance Broker has E&O insurance which covers Licensee s activity when providing services offered by Broker to clients and customers in accordance with Governing Authorities, Broker s ICA and Broker s Policies and Procedures. Broker pays the premiums directly to the company s provider. Currently, the deductible amount is $20, Regardless of Licensee s current license or affiliation status with Broker, Licensee must pay this deductible if a claim is due to Licensee s violation of any rule or regulation of a Governing Authority, Broker s ICA or Broker s Policies and Procedures. Broker uses a portion of Licensee s Copyright Solid Source Enterprises 17 P age