Rules fr the 2018 Prductin Year APPLICATION DEADLINE THURSDAY JANUARY 17, 2019, 5:00 PM PINNACLE AWARDS CELEBRATION THURSDAY MARCH 21, 2019 Carls Hellenic Center Ballrm DeKalb Assciatin f REALTORS
1. ELIGIBILITY Any independent cntractr (fficer r therwise) and/r emplyee f any real estate brker (individual r firm) Applicant s Brker Firm must be in gd standing with the DeKalb Assciatin f REALTORS and dues fr all its members paid fr the qualifying and current year. Applicant must be a REALTOR member in gd standing f the DeKalb Assciatin f REALTORS (DAR) and dues paid fr bth qualifying and current year Bth salaried r independent cntractrs are eligible fr the award It is the respnsibility f the applicant s brker t verify qualifying transactins and Grss Cmmissin Incme. 2. QUALIFYING TRANSACTION PERIOD (QTP) ONLY transactins and incme received during the qualifying year, January 1, 2018 thrugh December 31, 2018, shall be allwed. 3. GROSS COMMISSION INCOME (GCI) AND TRANSACTION QUALIFICATIONS: Individual applicants must fulfill the fllwing requirements: (See example sheet attached) A-1. Sales Transactins Clsed NEW BUSINESS *fr a minimum f $50,000 Grss Cmmissin Incme (GCI). OR 25 clsed transactin sides fr which a cmmissin was paid fr business generated by the applicant. NOTES: (Mst f these ntes were mved frm#5 and #8) *GCI shall be defined as applicant s prductin f sales, listings, leases, management fees, and referral incme. Credit shall be 100% f the cmmissins and fees paid t the applicant s brkerage cmpany fr that applicant s prductin during the qualifying year. If applicant has any incme frm a transactin fr a prperty where the applicant has any wner interest, applicant will nt receive credit fr incme equal t the percent f wnership interest. Hwever, credit will be allwed fr clsed transactins invlving family members wh are investrs r builders prvided the applicant s brker is paid a cmmissin. D nt subtract brkerage desk fees, MLS fees, etc. *GCI des nt include: Incme frm Appraisals Incme frm Evaluatins and cnsultatins f any kind, regardless f purpse *If applicant is n a team, the qualifying GCI wuld be credited t the applicant nt the ttal amunt paid t the team. *If mre than ne individual within the same cmpany participates as the selling agent, the listing agent r the leasing agent, the credit allwed shall be in the same prprtins as the divisin f cmmissin (r credits fr cmmissin) between the individuals. If a referral, credit shall be the amunt/percentage earned by the applicant. *C-Agents: Ttal credit amunts claimed by c-agents fr purpses f qualifying fr the Pinnacle Award may nt exceed a cmbined amunt f 100% f the cmmissin paid n that side f the transactin. A-2. Lease Transactins (Mst f these ntes were mved frm#5 and #8) Fr leases, NEW BUSINESS GCI is cunted twards units fr the first term f the lease transactin. Lease incme can nly be claimed fr the QTP in which it is received. 25 cmpleted transactin sides fr which a cmmissin was paid fr business generated by the applicant. NOTES: *GCI shall be defined as applicant s prductin f sales, listings, leases, management fees, and referral incme. Credit shall be 100% f the cmmissins and fees paid t the applicant s brkerage cmpany fr that applicant s prductin during the qualifying year. If applicant has any incme frm a transactin fr a prperty where the applicant has any 2018 PINNACLE AWARD RULES 2
wner interest, applicant will nt receive credit fr incme equal t the percent f wnership interest. Hwever, credit will be allwed fr clsed transactins invlving family members wh are investrs r builders prvided the applicant s brker is paid a cmmissin. *D nt subtract brkerage desk fees, MLS fees, etc. *GCI des nt include: Incme frm Appraisals Incme frm Evaluatins and cnsultatins f any kind, regardless f purpse *If applicant is n a team, the qualifying GCI wuld be credited t the applicant nt the ttal amunt paid t the team. *If mre than ne individual within the same cmpany participates as the selling agent, the listing agent r the leasing agent, the credit allwed shall be in the same prprtins as the divisin f cmmissin (r credits fr cmmissin) between the individuals. If a referral, credit shall be the amunt/percentage earned by the applicant. *C-Agents: Ttal credit amunts claimed by c-agents fr purpses f qualifying fr the Pinnacle Award may nt exceed a cmbined amunt f 100% f the cmmissin paid n that side f the transactin. B. Applicants wh change ffices during the QTP must ntify DeKalb REALTORS within 30 days f changing brkerage firms t qualify. C. Transferring credits will be cnsidered frm applicants wh transfer frm ther REALTOR Assciatins with previus brkers and current Assciatins verificatin prvided there is n mre than a 30-day lapse in applicatin and payment f dues fr DAR membership. D. Applicants whse license was suspended during QTP, r are currently under suspensin will be disqualified. 4. APPLICATION SUBMISSION A. All applicants must submit an award applicatin t the Pinnacle Award Cmmittee, which includes: (1) Applicatin Frm (Paper r Email (pinnacle@dekalbrealtrs.cm)) (2) Applicatin Fee ($75) (3) Applicant Prfessinal Phtgraph (4) Pinnacle Award Transactin Spreadsheet r a cmputer-printed frm that cntains the infrmatin required n the Pinnacle Award Transactin Spreadsheet as lng as it includes the fllwing infrmatin: Prperty Address Clsing Date Grss Cmmissin (paid t the cmpany befre any Brkerage specific deductins r MLS fees are deducted) Percentage side f transactin claimed (Listing/Selling r Leasing Agent*) Percentage f GCI claimed by the applicant f the Grss Cmmissin *Example: If yu c-list and received ne-half f the listing side, yur side claimed wuld be.5. 1. Applicant must use the Pinnacle spreadsheet r any ther cmputer generated spreadsheet that aut-calculates. 2. If the applicant changed cmpanies during the calendar year, a separate transactin detail sheet(s) must be prvided fr each brkerage cmpany. Each previus Brker s additinal page must be signed by the applicant and als certified by his/her previus Managing Brker. 2018 PINNACLE AWARD RULES 3
B. DEADLINES: (1) Email applicatin (pinnacle@dekalbrealtrs.cm): signed applicatin, transactin spreadsheet, and payment must be received n later than 11:59 pm n January 16, 2019. The Pinnacle Cmmittee highly recmmends using the email applicatin. The Assciatin will cnfirm receipt f email applicatins, but is nt respnsible fr applicatins that are nt received. Check yur inbx and spam flders fr applicatin receipt. If receipt email is nt received, it is yur respnsibility t immediately cntact the Assciatin at 770-493-6100. (2) In persn r mail applicatin: signed applicatin, transactin spreadsheet, phtgraph, and payment must be received in the Assciatin ffice n later than 4:00 pm January 15, 2019. (3) Applicatins received after the deadline will be returned t the applicant and will nt be cnsidered. C. Phtgraphs: A pht must be electrnically transmitted t DeKalb REALTORS by the applicatin deadline. Phts deemed inapprpriate by the Cmmittee will nt be used. Phts must be in print-ready jpg frmat and emailed with applicatins t pinnacle@dekalbrealtrs.cm. Once submitted, applicatins and all supprting dcumentatin becme the sle prperty f the DeKalb Assciatin f REALTORS. Materials submitted will be shredded and will nt be retained by the Assciatin. D. The Pinnacle Award: The apprved applicant will be recgnized as fllws: Pinnacle Award Recipient: All apprved applicants wh clse NEW BUSINESS fr a minimum f either $45,000 Grss Clsed Cmmissins Incme (GCI) paid t the applicant s brkerage cmpany r 25 clsed transactin sides fr which a cmmissin was paid t the applicant s brkerage cmpany during 2018 fr business generated by the applicant. All applicants will be identified with their names and brkerage names, as well as team affiliatin, if any. Fr leases, new business is cunted tward units fr the first term f the lease transactin. Lease incme may be claimed fr the year it is received. E. Tp Prducer Awards: After the submissin deadline, all applicants, including ptential Tp Prducers, will be subject t an audit. (See F, Applicatin Review/Audit fr details.) 1. The Tp Twenty-Five based n GCI fr all sales and leases 2. The Tp Three based n Units (Listing/Sales sides f transactins, n Leases) 3. The Tp Three based n Units (Leases nly, n Listing/Sales transactins) 4. Rising Star REALTOR (1 year r less during qualifying transactin perid) GCI r Units F. Applicatin Review/Audit: Each applicatin will be reviewed by the Pinnacle Award Cmmittee. The applicant is nt required t submit dcumentatin beynd the Applicatin and Transactin Frm (spreadsheet) with the applicatin. Hwever, at the discretin f the Pinnacle Award Cmmittee, the applicant may be required t prvide dcumentatin in rder fr the applicatin t be reviewed r audited. Brkers f all candidates t be cnsidered fr a Tp Prducer Award and audited applicants will be required t prvide requested additinal dcumentatin t be received at the Assciatin ffice n later than the audit deadline f January 31, 2018 by 5:00 p.m. Failure t submit dcumentatin fr audit by the deadline will disqualify the applicant frm cnsideratin fr Tp Prducer status and may result in the applicatin being denied fr that year. 2018 PINNACLE AWARD RULES 4
Required audit infrmatin may include: Cntract prperty legal descriptin page/address page and fully executed signature page Rental/lease page with prperty address, terms f lease and signature page Rental/lease cpy f check fr cmmissin, referral r management fees Clsing verificatin dcument (frmerly HUD-1) shwing cmmissin paid Cpy f check r transactin referral frm shwing amunt paid t applicant fr referral, etc. Brkerage cmmissin printut t verify claimed cmmissins, r if the applicant prefers, the applicant s 1099 with scial security number redacted G. Failure t cmply with the rules shall result in the disqualificatin f sme r all transactins at the discretin f the Pinnacle Award cmmittee. If a brker r agent submits a fraudulent applicatin, he/she will be autmatically disqualified. 5. USE OF DESIGNATION A. Pinnacle Award recipients shall be authrized t use the Pinnacle Award designatin apprved by the Bard f Directrs f DeKalb Assciatin f REALTORS nly during the year in which they are recipients f the Pinnacle Award. Life recipients f the Pinnacle Award shall be eligible t use such designatin and insignia as lng as they live and are members f the Assciatin. B. REALTOR Member cmpanies, lcal Bards, and REALTORS shall nt use the wrds Pinnacle Award r wrds similar theret, in its awards r advertising except where this plicy is used t dente receipt f the Pinnacle Award. The spirit f this rule is imprtant t maintain the prestige f the recipients f the DeKalb Assciatin f REALTORS Pinnacle Award. C. Tp Prducer award recipients advertising r marketing their Tp Prducer award must prminently display the year the award was received in any advertisement r marketing. Vilatin f this rule will result in the applicant s ineligibility fr the Pinnacle Award fr the subsequent qualifying year. 6. FEE The applicatin fee f $75.00 must accmpany the applicatin. (It des nt cnfirm the award lunchen reservatin, which is a separate registratin.) An applicatin fee enables the applicant t be cnsidered fr the Pinnacle Award. Prir t the reservatin deadline, availability t attend the Pinnacle Award event is n a first cme, first served basis until we reach facility capacity. The applicatin fee is nt transferable t a nn-applicant and is nt refundable. All attendees wh are nt spnsrs r applicants must pay a guest fee t attend the Pinnacle Lunchen. Checks returned by the bank must be replaced by certified payment within ne week f ntificatin r applicant will be disqualified. Applicant must pay returned fee assessed per DeKalb Assciatin f REALTORS plicy. 7. PINNACLE AWARDS CLASSES OF MEMBERSHIP A. Member REALTOR wh has been accepted fr the qualifying year. B. Life REALTOR wh has been accepted fr the qualifying year and fr 3 cnsecutive years r any five years. C. Phenix REALTOR wh has been accepted fr the qualifying year and fr 10 19 years. D. Silver Phenix REALTOR wh has been accepted fr the qualifying year and fr 20 24 years. E. Gld Phenix REALTOR wh has been accepted fr the qualifying year and fr 25 29 years. 2018 PINNACLE AWARD RULES 5
F. Platinum Phenix REALTOR wh has been accepted fr the qualifying year and fr 30 39 years. G. Diamnd Phenix REALTOR wh has been accepted fr the qualifying year and fr 40 49 years. H. Diamnd Plus Phenix REALTOR wh has been accepted fr the qualifying year and fr mre than 50+ years. 8. PREVIOUSLY EARNED AWARDS A. If credit frm anther Assciatin is used tward qualifying fr any categry f the Pinnacle Award, a written cnfirmatin fr such credit must be prvided by said Assciatin and accmpany the applicatin. B. Previusly earned credits frm the DeKalb Millin Dllar Club will be hnred at the same level in the Pinnacle Award. Fr example, 29 years in the Millin Dllar Club will be recgnized in Pinnacle Award as Gld Phenix. 9. ADMISSIONS SUB-COMMITTEE The Pinnacle Cmmittee Chair shall appint an Admissins Sub-Cmmittee which shall be cmpsed f the cmmittee Chair, Vice Chair and at least tw DeKalb Life Members in the Pinnacle Awards. It shall be the duty f this sub-cmmittee t determine which applicatins require auditing after all applicatins are received and reviewed. This sub-cmmittee shall then submit a reprt t the Bard f Directrs f DeKalb Assciatin f REALTORS n later than the next Bard f Directrs meeting, giving their recmmendatin with regard t each applicatin. 10. MEMBERSHIP TERMINATION As is the case f all rganizatins spnsred by DeKalb Assciatin f REALTORS, receipt f the Pinnacle Award shall be cntingent upn membership in gd standing in DeKalb Assciatin REALTORS fr the qualifying year. If, fr any reasn, a recipient f the Pinnacle Award ceases t be a member f the Assciatin, their Membership in the Pinnacle Award is autmatically terminated. 11. APPROVAL OF DISSOLUTION The Pinnacle Awards f DeKalb REALTORS have been established and are spnsred by the Assciatin, and all actins assciated with the Pinnacle Awards shall be subject t the apprval f the Bard f Directrs f the Assciatin. DeKalb Assciatin f REALTORS reserves the right t disslve the Pinnacle Awards at its discretin. 12. PINNACLE DIGITAL BADGE Each Pinnacle recipient will receive a Pinnacle digital badge reflecting the year they qualified and the level they have achieved. The badge is a graphic icn t be used fr recgnitin and marketing by the recipient. 13. THESE AMENDED RULES AND REGULATIONS OF THE PINNACLE AWARDS SHALL APPLY UNTIL MODIFIED BY THE BOARD OF DIRECTORS OF DEKALB ASSOCIATION OF REALTORS. Revised Octber 2018 2018 PINNACLE AWARD RULES 6
EXAMPLE 1 I represent the buyer n 123 Maple St. My Brker received a cmmissin f $10,000. The cmmissin was split with anther agent in my ffice. I received 70% and will claim $7,000 GCI and.7 units n my Pinnacle Transactin Frm. The c-agent received 30% and will claim $3,000 GCI and.3 units n their frm. (*Nte: MLS, FMLS r fees due t the Brker are nt deducted) EXAMPLE 2 I leased a prperty at 402 Oak St. My teammate and I split the cmmissin. Can I use the unclaimed credits since my teammate is nt applying fr Pinnacle at DeKalb REALTORS? ANSWER: N, unclaimed credits may nt be exchanged. EXAMPLE 3 I referred a seller t anther agent fr a referral fee f 25%. My Brker received a referral fee fr the transactin. The check t my Brker was $2500 which was 25% f the ttal cmmissin split. What may I claim? Hw much f a unit credit may I take. ANSWER: I may claim $2500 GCI and I can claim.25 units. EXAMPLE 4 As a listing agent, I listed a prperty t lease fr $1,600/m. The ttal cmmissin due t my Brker is $1,200. The cmmissin due t the leasing Brker is $400. Hw much can I claim in GCI and units? ANSWER: I can claim $1,200 GCI and 1 unit. The leasing agent can claim $400 and 1 unit. (*Cntinuing Example 4) I als manage the abve referenced prperty. I receive a management fee f $160/m = $1,920 annually. Hw much GCI may I claim, and hw many units. ANSWER: I can claim $1,920 GCI and 0 units. EXAMPLE 5 I am a 50% wner f a prperty that I leased in 2018. The lease term was 5 years at $2,000/m and the ttal cmmissin paid t my Brker is $2,000. As the listing agent hw much can I claim as GCI and hw many units? ANSWER: A Pinnacle applicant that has wner interest in a prperty CANNOT claim the percentage f wner interest fr any transactin invlving that prperty. Therefre, I can claim $1,000 GCI which is less 50% f the ttal cmmissins. And I can claim 1 transactin unit which is 50% less the ttal units fr this transactin. (*Cntinuing Example 5) If I received a mnthly management fee f $200/m frm February December 2018 fr the same prperty, hw much GCI can I claim and hw many units? ANSWER: I can claim an additinal $1100 GCI which is 50% less the ttal annual management fee f $2,200. I can claim 0 units. 2018 PINNACLE AWARD RULES 7