GREATER LAS VEGAS ASSOCIATION OF REALTORS COMMERCIAL ALLIANCE LAS VEGAS RULES AND REGULATIONS

Transcription

1 GREATER LAS VEGAS ASSOCIATION OF REALTORS COMMERCIAL ALLIANCE LAS VEGAS RULES AND REGULATIONS Revised February 2003 In compliance with NAR February 2003 Rules & Regulations Page 1 of 11

2 RULES & REGULATIONS Definitions Membership in the Commercial Alliance Las Vegas Greater Las Vegas Association of REALTORS Commercial Information Exchange Member Site Commercial Alliance Las Vegas (CALV) Greater Las Vegas Association of REALTORS (GLVAR) Commercial Database: Online intranet site accessible only by paying Members with a current password. The CALV shall be accessible through the URL LasVegas.com. CALV will contain an information database containing REALTOR and non- REALTOR listing information on available properties for sale, lease, or exchange. Ongoing data entry and data maintenance will be the responsibility of CALV, Members and Member firms. CALV Public Site: The CALV shall be accessible through the URL LasVegas.com, which will contain partial property descriptions, announcements of events, advertisements and other information, published by CALV. CALV public site shall provide a list of properties but without the detail and search capabilities of the private site. It may be a listing platform for paid advertising providing limited information for the public with links to Member Firm sites. Non-members shall be able to present property listings with appropriate disclaimers protecting CALV and GLVAR from liability resulting from inaccurate property information. Member Participant: Any GLVAR Primary and Secondary REALTOR Member, and REALTOR Members of other Associations hereafter defined as Participant. Participants agree to abide by CALV Bylaws, Code of Ethics, and CALV Rules and Regulations of the National Association of REALTORS ; and must be current on all obligations with CALV. If the participant is a REALTOR member they must be current in their state, national, and local dues. Government, Economic Development Affiliate Member, and Affiliate Member Participant: Any individual who, while not engaged in the real estate profession is recognized as being governmental, community, or economic development professional, who is engaged in the attraction, retention, assessment or expansion of the economic base of Nevada and has interests obtaining commercial real estate data. Institute Affiliates Participants: Institute Affiliate members such as CCIM, IREM, and SIOR affiliates may be participants and agree to abide by the GLVAR Bylaws, and CALV Rules and Regulations. If an institute affiliate would like access to the CIE they may join CALV and pay the member dues. Member Firm: Firms comprised of REALTOR principals of GLVAR or any other Board, are eligible to participate in the CALV upon agreeing in writing to conform to CALV Rules and Regulations and pay the service fees and charges as specified in Section 4 of these Rules. Member Participant and Firm Qualification: Use of information developed by or published by the CALV, and unauthorized uses are prohibited. Subscriber: Page 2 of 11

3 Any REALTOR Member firm will be eligible to have access to the CALV for the purpose of acquiring and assembling the data for the Participant s use and will be assigned a password to a designated research analyst, support staff or specialized computer staff person. Non-Member: Any licensed non-realtor agent may join CALV at a premium rate and have access to database. They must conform to the rules set forth for the CALV. Responsibility for Conformance with Rules and Regulations: CALV Participants and Member firms are responsible to GLVAR and CALV for compliance with the Rules and Regulations by whoever has access to and use of CALV. Access to CALV by Participants, Member Firms and Subscribers: Only Participants, Member firms and subscribers with a current password may have access to and use of the current property information generated by the CALV. In view of the fact that the CALV is an property information exchange and not a Multiple Listing Service or a Commercial Listing Service, and no offers of cooperation or compensation can be extended through the CALV, it is not essential that a Participant be retained by a property owner to market the property, have an exclusive right to sell, exclusive agency, or open listing. Other forms of agreement through which the Participant agrees to provide certain marketing services may be the basis for authorizing the submission of property information to the CALV. When the Participant is acting on behalf of a buyer or lessee, the Participant may submit information to CALV describing the type of property sought, even though the Participant may not be the buyer s or lessee s exclusive agent. When the Participant is acting on behalf of the seller or lessor, it is essential that there be a written agreement between the Participant and the seller or lessor authorizing the Participant to submit information on the property to CALV. Participant submitting any data, including but not limited to site plans, surveys, photographic images, and floor plans, represents that the participant has the authorization to submit the data and that neither the participant nor CALV infringe upon any third party rights. Participants agree to indemnify and hold harmless CALV and GLVAR from any claim arising out of failure to comply with this representation. Passwords: Before access is granted, each Participant, Member firm and subscriber shall be issued a customer id. Commercial Search shall be responsible for the administration and control over the customer id assignments. Participants will be asked to create at least a five (5) character or number password. Filing Procedure Section 1. Filing Procedures. Submission of any property information to CALV is voluntary or is entered by GLVAR on the part of the Participant, Member firm or subscriber. Information on property for sale, lease or exchange of the following types may be submitted to CALV: 1. Multiple Dwelling (4or more) 2. Land 3. Office 4. Industrial 5. Retail 6. Business Opportunity 7. Office Lease 8. Industrial Lease 9. Retail Lease 10. Ground Lease Page 3 of 11

4 While CALV does not require a Participant acting on behalf of a seller or lessor to utilize a particular listing contract or other form of agreement, CALV shall require use of a standardized property information sheet or computer format screen, as determined by CALV, to submit information on properties for sale, lease or exchange to CALV. CALV accepts information on properties which are currently listed on an exclusive right to sell or lease basis, or open listing basis, as well as other forms of agreement that make it possible for the Participant to market the property. Information submitted on properties for sale, lease or exchange in CALV by a Participant is an acknowledgment that the Participant has authorization from the seller. CALV will not publish information on properties taken on a net listing basis. CALV accepts information, which shall be listed in the NMIE, on properties which may be currently available for sale, lease or exchange and which may be marketed by the Participant only if written permission is obtained from the seller, lessor or agent for the seller or lessor. CALV contains data and county records of commercial properties that may not be actively on the market and are identified as inactive or county records. Section 1.1 Filings Subject to Rules and Regulations of the CALV. Any property information to be filed with CALV is subject to the Rules and Regulations upon filing. Section 1.2 Detail of Information Filed with the Exchange. Any property information submitted to CALV should include a description of the type of property and the price, or a description of the property sought, or any pertinent information as determined by CALV. Section 1.3 Change of Status. Any change in price or other change in the terms of the information originally filed shall be submitted to CALV within seventy-two (72) hours (except weekends and holidays). Section 1.4 Withdrawal of Filing Prior to Termination. Filings may be withdrawn from CALV by the filing Participant through the submission of a written withdrawal notice signed by the Participant, or by the Participant online. Section 1.5 Specification of Price. The Participant, acting on behalf of a seller or lessor, shall specify the price or lease rate at which the property is being marketed unless the property is subject to auction. Section 1.6 Multiple Unit Properties. Any property, which is to be sold, leased or exchanged, or which may be marketed separately must be so indicated on the property information sheet. When any part of the filed property has been sold, leased or exchanged, the rules related to notifying CALV shall be observed. Section 1.7 Publication of Information. Property information will be online in the CALV compilation for a period not to exceed 180 days, or as specified by the filing Participant. The information will be withdrawn from the compilation on the date specified by the Participant, but may be extended for additional periods. CALV reserves the right to purge filings that exceed a period of one year. Section 1.8 Filings of Suspended, Expelled or Resigned Participants. When a Participant is suspended, expelled or voluntarily resigns from GLVAR, all property information filings submitted by the Participant may be removed from CALV, and access will be denied. Page 4 of 11

5 Negotiations Section 2 Negotiations. The filing of information with CALV by a Participant, acting on behalf of a seller or lessor does not, in and of itself, constitute an offer of cooperation. Any Participant, or licensee with a Participant, wishing to cooperate in the marketing of the property must contact the filing Participant to determine the type of cooperation offered, the compensation offered (if any) to Participants procuring a purchaser or lessee, and the terms and conditions upon which the property being offered may be shown. Any Participant, or licensee affiliated with a Participant, attempting to locate a property on behalf of a buyer must contact the Participant representing the seller/lessor to determine the terms and conditions of cooperation, the compensation offered (if any), and to arrange showings of prospective properties. Section 2.1 Reporting Sales in CALV. Sales, leases or exchange shall be changed in the CALV by the Participant making the original information filing within seventy-two (72) hours (excluding weekends and holidays) of acceptance of a contract to purchase, lease or exchange. NMIE sales, leases or exchange shall be reported to CALV upon verification of sale, lease or exchange from the nonmember owner or agent. It is the intent of CALV to verify all filings every three months, or as practical. Section 2.2 Presentation of Offers: A filing Participant acting as the agent of a seller or lessor shall present all offers to the seller or lessor until closing unless precluded by law, government rule, regulation, or unless otherwise agreed in writing between the seller(s) or lessor(s) and filing Participant. Unless a subsequent offer is contingent upon the termination of an existing contract, the filing Participant shall recommend that the seller(s) or lessor(s) obtain the advice of legal counsel prior to accepting a subsequent offer. Section 2.3 Right of Participant Producing Offer in Presentation of Offer: The Participant producing the offer or his representative has the right to participate in the presentation to the seller or lessor of any offer he secures to purchase, lease, or exchange. He does not have the right to be present at any discussion or evaluation of that offer by the seller or lessor and the filing Participant. However, if the seller or lessor gives written instructions to the filing Participant that the Participant producing the offer not be present when an offer the broker secured is presented, the Participant producing the offer has the right to a copy of the seller s or lessor s written instructions. None of the foregoing diminishes the filing Participant s right to control the establishment of appointments for such presentations. (Amended 4/92) Section 2.4 Right of Seller/Lessor Representative in Presentation of Counter-Offer: The Participant representing the seller or lessor, or his representative, has the right to participate in the presentation of any counter-offer made by the seller or lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except where the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions to the cooperating broker that the Participant representing the seller or lessor not be present when a counter-offer is presented, that broker has the right to a copy of the purchaser s or lessee s written instructions. (Adopted 11/93) Section 2.5 Reporting Canceled Pending Sales. The Participant making the original filing shall report any canceled sale; lease or exchange to CALV within seventy-two (72) hours and the property information filing shall be reinstated in the compilation of current information. Prohibition Section 3.0 Property information published through CALV may not be made available to any broker or firm not participating in CALV, without the prior express consent of the filing Participant. Section 3.1 "For Sale" Signs: Only the "For Sale" sign of the listing broker may be placed on a property. Section 3.2 "Sold" Signs: Page 5 of 11

6 Prior to closing, only the "Sold" sign of the listing broker may be placed on a property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign. Fees and Charges Section 4.0 Fees and Charges Changes. All fees are subject to change by the CALV Board of Directors upon notifying, in writing or electronically, of any modifications, provided at least ten (10) days notice has been given by CALV. From time to time, CALV may establish other fees or fines upon giving Participants, and Member firms ten (10) days notice. Section 4.1 Billing. GLVAR shall act as the agent for collection of all fees generated by CALV. Fees for Participants and non-members shall be billed and collected on a semi annual basis. GLVAR shall take reasonable steps to collect any fees payable, including requiring such fees be paid in advance before such service is rendered to either the Participant or non-member. GLVAR may require Participants or non-members to pay a deposit, the amount determined by GLVAR, for any Participant or nonmember who has demonstrated a delinquent or late payment history. The semi annual fee of each Participant and Subscriber shall be an amount equal to a fee set by resolution of the CALV Board of Directors and adoption of the annual budget, or any modification thereof. All service fees shall be paid semi annual in advance and are non-refundable. Fees shall be filed on the fifteenth day of the month preceding the beginning of the quarter and will be due on the first of the month following the billing. If not paid by the 10th of the month, the service to the Subscriber shall be suspended and a reinstatement fee of Thirty Dollars ($30.00) shall be assessed to the Subscriber. On the 10th of the month, all outstanding fees shall be billed to the Broker with a notice that should any fees remain unpaid by the 25th of the month, service to the office will be suspended and all subscribers will be notified accordingly. Section 5.0 Compliance with Rules. The following actions may be taken for non-compliance with the Rules: (a) For failure to pay any service fee or charge within thirty (30) days of the date due, CALV shall suspend service until fees or charges are paid in full, provided that at least ten (10) days notice has been given. (b) For failure to comply with any other Rule, the provisions of Section 8.0 and 8.1 shall apply. Section 5.1 Applicability of Rules to Users. Subscribers and others authorized to have access to information published by CALV are subject to these Rules and Regulations, and may be disciplined for violations thereof, provided that the user or subscriber has signed an agreement acknowledging that access to and use of CALV information is contingent upon compliance with the Rules and Regulations. Further, failure of any user or subscriber to abide by the Rules and/or any sanction imposed for violations thereof can subject the Member firm and Participant to the same or other discipline. This provision does not eliminate the Participant s ultimate responsibility and accountability for all users and subscribers affiliated with the Member firm and Participant. Section 6. Meetings. The meetings of Member firms, Participants and subscribers and non-members in CALV or the Board of Directors of CALV for transaction of business of CALV, shall be held in accordance with the provisions of Bylaws of CALV. Enforcement of Rules and Disputes Section 7. Consideration of Alleged Violations. CALV shall give consideration to all written complaints alleging violations of the Rules and Regulations. Section 7.1 Violations of Rules and Regulations. Page 6 of 11

7 If the alleged offense is a violation of the rules and regulations of the CALV and does not involve a charge of alleged unethical conduct or a request for arbitration, it may be considered and determined by the CALV Operations and Marketing Committee, and if a violation is determined, the CALV Operations and Marketing Committee may direct the imposition of sanction, provided that the recipient of such sanction may request a hearing before the professional standards committee of the GLVAR in accordance with the bylaws and rules and regulations of GLVAR within twenty (20) days following receipt of the committee s decision. Section 7.2 Complaints of Unethical Conduct and Arbitration Disputes. Any alleged unethical conduct whether it be an alleged violation of the Code of Ethics or an alleged violation of the CALV s Standard of Conduct will be referred to the GLVAR for processing of the complaint in accordance with GLVAR s professional standards procedures. Confidentiality of CALV Section 8.0 Confidentiality of CALV. Information provided by CALV shall be considered confidential and is provided exclusively for the use of Participants, and Member firms. Section 8.1 Responsibility. CALV shall not be held responsible for information submitted by users. The information published by CALV is communicated, without change, as filed by the users. CALV does not verify the information provided and disclaims any liability or responsibility for its accuracy. Each user agrees to hold CALV harmless against any liability arising from any inaccuracy or inadequacy of CALV such user provides. Ownership of CALV Compilations and Copyrights Section 9.0 By submitting property information to CALV, the user represents that he/she has been authorized to grant, and also thereby does grant, authority for CALV to include the property information in its copyrighted CALV compilation and also in any comparable report, sold report, or other historical or statistical report, unless expressly indicated otherwise in writing at the time the information is filed with CALV. Property information from NMIE may be placed in the CALV records. Section 9.1 All right, title, and interest in each copy of every CALV compilation created and copyrighted by CALV or GLVAR, and in the copyrights therein, shall at all times remain vested in CALV and GLVAR. Any data submitted by the participant to CALV, including site details and photographic images, requires the participant have the right to submit the data and that neither the participant nor CALV infringe on any third party rights in any of the posted information. Participants agree to indemnify and hold harmless CALV from any claim arising from failure to comply with this representation. Use of Copyrighted CALV Section 10.0 Distribution. Users shall at all times maintain control over, and responsibility for, each of the CALV compilations purchased by them, and shall not distribute the compilation to anyone other than those affiliated with the Participants and Member firms. Section 10.1 Display. Page 7 of 11

8 Participants shall be permitted to display the CALV compilation to prospective sellers, lessor and purchasers only in conjunction with their ordinary business activities of attempting to market properties or to identify suitable properties for buyers or lessees. Section 10.2 Reproduction. Participants shall not reproduce any CALV compilation, or any portion thereof, except in the following circumstances: Participants may reproduce from the CALV compilation, and distribute to prospective sellers, lessors and purchasers, a reasonable number of single copies of property information contained in the CALV compilation or suitable properties. Reproductions made in accordance with this Rule shall exclude: information on properties other than that in which a buyer has expressed interest, in which the Participant is promoting interest, or in which it is necessary to assist in determining a reasonable market price. Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property information sheets or other compilations of data pertaining exclusively to properties submitted to the CALV by the Participant. Any information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and subscribers who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office or firm. None of the foregoing shall be construed to prevent any individual legitimately in possession of current property information, sold information, comparable, or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client or for locating suitable properties for a client. However, only such information that GLVAR or CALV has deemed to be non-confidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these Rules and Regulations. Use of CALV Section 11.0 Limitations on Use of CALV Information. Use of information from the compilation of current property information, from the statistical report, or from any sold or comparable report of GLVAR or CALV for public mass media advertising by a Participant or in other public representations may not be prohibited. However, any print or non-print forms of advertising or other forms of public representations based in whole or in part on information supplied by GLVAR or CALV and NMIE must clearly demonstrate the period of time over which claims are based. Based on information from the Board/Association of REALTORS (alternatively, from the CIE) for the period (date) through (date). (Amended 11/93) Section 12 Standards of Conduct for Exchange Participants: Section 12.1 Exchange Participants shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other Exchange Participants have with clients. (Amended 1/98) Section 12.2 Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without the consent of the seller/landlord. Section 12.3 Exchange Participants acting as subagents or as buyer/tenant agents or brokers, shall not attempt to extend a listing broker s offer of cooperation and/or compensation to other brokers without the consent of the listing broker. (Amended 1/98) Section 12.4 Exchange Participants shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the Exchange Participant, the broker refuses to disclose the expiration date and nature of such listing; i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the Exchange Participant may contact the owner to secure such Page 8 of 11

9 information and may discuss the terms upon which the Exchange Participant might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing. Section 12.5 Exchange Participants shall not solicit buyer/tenant agreements from buyers/tenants who are subject to exclusive buyer/tenant agreements. However, if asked by an Exchange Participant, the broker refuses to disclose the expiration date of the exclusive buyer/tenant agreement, the Exchange Participant may contact the buyer/tenant to secure such information and may discuss the terms upon which the Exchange Participant might enter into a future buyer/tenant agreement or, alternatively, may enter into a buyer/tenant agreement to become effective upon the expiration of any existing exclusive buyer/tenant agreement. (Amended 1/98) Section 12.6 Exchange Participants shall not use information obtained from listing brokers through offers to cooperate made through the Commercial Information Exchange or through other offers of cooperation to refer listing brokers clients to other brokers or to create buyer/tenant relationships with listing brokers clients, unless such use is authorized by listing brokers. (Amended 11/01) Section 12.7 The fact that an agreement has been entered into with an Exchange Participant shall not preclude or inhibit any other Exchange Participant from entering into a similar agreement after the expiration of the prior agreement. (Amended 1/98) Section 12.8 The fact that a client has retained an Exchange Participant as an agent or in another exclusive relationship in one or more past transactions does not preclude other Exchange Participants from seeking such former client s future business. (Amended 1/98) Section 12.9 Exchange Participants are free to enter into contractual relationships or to negotiate with sellers/ landlords, buyers/tenants or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent. (Amended 1/98) Section When Exchange Participants are contacted by the client of another Exchange Participant regarding the creation of an exclusive relationship to provide the same type of service, and Exchange Participants have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. (Amended 1/98) Section In cooperative transactions, Exchange Participants shall compensate cooperating Exchange Participants (principal brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of the sales licensees employed by or affiliated with other Exchange Participants without the prior express knowledge and consent of the cooperating broker. Section Exchange Participants are not precluded from making general announcements to prospective clients describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another Exchange Participant. A general telephone canvass, general mailing or distribution addressed to all prospective clients in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed general for purposes of this rule. (Amended 1/98) The following types of solicitations are prohibited: Telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another Exchange Participant; and Mail or other forms of written solicitations of prospective clients whose properties are exclusively listed with another Exchange Participant when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, for sale or for rent signs, or other sources of information intended to foster cooperation with Exchange Participants. Section Exchange Participants, prior to entering into an agency agreement or other exclusive relationship, have an affirmative obligation to make reasonable efforts to determine whether the client is subject to a current, valid exclusive agreement to provide the same type of real estate service. (Amended 1/98) Section Exchange Participants, acting as agents of, or in another relationship with, buyers or tenants, shall disclose that relationship to the seller/landlord s agent or broker at first contact and shall provide written confirmation of Page 9 of 11

10 that disclosure to the seller/landlord s agent or broker not later than execution of a purchase agreement or lease. (Amended 1/98) Section On unlisted property, Exchange Participants acting as buyer/tenant agents or brokers shall disclose that relationship to the seller/landlord at first contact for that client and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement. (Amended 1/98) Exchange Participants shall make any request for anticipated compensation from the seller/landlord at first contact. Section Exchange Participants, acting as agents or brokers of sellers/landlords or as subagents of listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable and shall provide written confirmation of such disclosure to buyers/tenants not later than execution of any purchase or lease agreement. (Amended 1/98) Section Exchange Participants are not precluded from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage). However, information received through a CIE may not be used to target clients of other Exchange Participants to whom such offers to provide services may be made. Section Exchange Participants, acting as subagents or buyer/tenant agents or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker s offer of compensation to subagents or buyer s agents or brokers, nor make the submission of an executed offer to purchase/lease contingent on the listing broker s agreement to modify the offer of compensation. (Amended 1/98) Section All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client's agent or broker, and not with the client, except with the consent of the client's agent or broker or except where such dealings are initiated by the client. (Amended 1/98) Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospective purchasers, sellers, tenants or landlords ("prospects"), Exchange Participants shall ask prospects whether they are a party to any exclusive representation agreement. Exchange Participants shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects' exclusive representatives or at the direction of prospects. (Adopted 1/03) Section Participants, users, and subscribers, prior to or after terminating their relationship with their current firm, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude Participants from establishing agreements with their associated licensees governing assignability of exclusive agreements. (Adopted 1/98) Section These rules are not intended to prohibit ethical albeit aggressive or innovative business practices, and do not prohibit disagreements with other Exchange Participants involving commission, fees, compensation or other forms of payment or expenses. Section Exchange Participants shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices. Arbitration of Disputes Section 13 Arbitration of Disputes: By becoming and remaining a Participant, each Participant agrees to arbitrate disputes involving contractual issues and questions, and specific non-contractual issues and questions defined in Standard of Practice 17-4 of the Code of Ethics with Exchange Participants in different firms arising out of their relationships as Exchange Participants subject to the following qualifications: (Amended 11/97) (a) If all disputants are members of the same Board of REALTORS, or have their principal place of business within the same Board s territorial jurisdiction, they shall arbitrate pursuant to the procedures of that Board/Association of REALTORS. (b) If the disputants are members of different Boards of REALTORS, or if their principal place of business is located within the territorial jurisdiction of different Boards of REALTORS, they remain obligated to arbitrate in accordance with the procedures of the (State Association) of REALTORS. Page 10 of 11

11 Interboard Arbitration Procedures: Arbitration shall be conducted in accordance with any existing interboard agreement or, alternatively, in accordance with the Interboard Arbitration Procedures in the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS. Nothing herein shall preclude Participants from agreeing to arbitrate the dispute before a particular Board/Association of REALTORS. (Amended 11/98) Agreeing to arbitrate disputes in accordance with the CALV rules and regulations and with the GLVAR bylaws is a mandatory condition of becoming a CALV member. Mediation of disputes is offered on a voluntary basis. Section 14.0 Orientation. Any applicant for CALV Participant and any licensee or support staff affiliated with a Participant who has access to and use of CALV-generated information will receive the CALV Rules and Regulations and may attend a training session related to CALV information entry and retrieval. Section 15.0 Amendments: The CALV Board of Directors has the authority to amend the Rules and Regulations from time to time. Whenever amendments are made, CALV shall notify its participants through communication channels made available by CALV and/or GLVAR whenever practical. Page 11 of 11