COMPANY POLICY AND GUIDELINES 2012

INTRODUCTION:

We put together this compilation of our company policy and guidelines to help keep everyone on the ‘same page’, and to insure that we are operating at the proper level of professionalism while limiting our own and our agents’ exposure to unnecessary legal risk. Please read the entire document and return the signed acknowledgement to the front desk. If you have any questions, please feel free to ask and we will be happy to explain. Thank you for your cooperation!

STANDARDS OF PRODUCTION:

As a real estate sales organization and as a RE/MAX company, we are here to succeed. All agents have a responsibility to themselves and to the team to make their best effort to list and sell real estate. If you are encountering difficulty or frustration, please see your manager and we will do our best to help you!

Conventional (i.e. non-95%) agents are expected to generate at least $40,000.00 per year in gross closed commissions (about 5 transactions). While extenuating personal circumstances will be taken into account, it is assumed that real estate is a career priority and that you are making a reasonable and consistent effort to be successful.

Our company is responsible to pay regional and promotional fees to RE/MAX totaling $273.00 per month, per agent. In consideration of this investment, all conventional (i.e. non-95% or RAPP plan agents) are expected to accomplish any one of the following in every three month period:

  • Obtain 2 residential or commercial SALE listings OR
  • Place 1 SALE transaction under contract (listing sold or buyer sale) OR
  • Close 1 SALE transaction (listing sold or buyer sale).

Shared listings and transactions count as ½.

Failure to accomplish any one of the above production targets in a 90 day period with no evidence of a consistent work plan may subject the agent to being billed $273.00/month, going forward, until the agent closes 2 transactions.Agent production will be credited on a cumulative basis. (Ex: if you close or contract 4 transactions in a 90 day period, you are exempt from monthly regional fees for the following 12 months.)

Agents with over $40,000.00 gross closed commission earnings in the prior year are also exempt.

If you are going to be out of work for an extended period of time (more than 30 days) due to illness, family responsibility or other hardship, please let us know immediately so that we can apply for a leave-of-absence suspension of your fees during this time.

RE/MAXBusiness Model:

Our business model is designed primarily for agents who truly wish to own and operate their own business in partnership with the world’s #1 real estate brand! While we continue to offer no-cost conventional programs, all agents are encouraged to take full advantage of the benefits of being a “true” RE/MAX 95% agent.Information about our 95% and “RAPP” plans can be found on our

Agent Care Website (

OFFICE MEETINGS:

General sales meetings are held every two weeks and will be announced in advance. While attendance is voluntary, please make every effort to attend, as we often discuss important legal and market updates that you need to know. Repeated absence may result in agent not being offered incoming buyer/listing opportunities that are generated by the company.

ACCEPTED BROKERAGE TYPES:

RE/MAX Signature Real Estate is a New York State Licensed Real Estate Broker. As such, agents are licensed, permitted and insured for the following transaction types:

  • Residential re-sales, new construction and rentals
  • Commercial re-sales, new construction and rentals
  • Foreclosures and short sales
  • Broker Price Opinions (“BPO’s”) and other paid/unpaid real estate valuation services
  • Business Brokerage (requires authorization by the broker!!)

Agents who are not experienced in commercial or business brokeragemust consult the manager prior to accepting any such listing.

We do not accept open-ended “Agency” listings(listings which give the seller the right to sell privately with no commission due). We also do not accept any sale or rental listing where the owner has indicated any intention of discriminatory behavior in their selection of potential buyers/renters.

LISTING AND BUYER AGENCY COMMISSION POLICY:

CONVENTIONAL AGENTSare free to negotiate their own professional fees in the field, subject to the following recommended minimum commission rates for residential re-sales:

List Price of Property/
Purchase Price of Property / Minimum Gross Commission (both sides) / MinimumBuyer Agent Contract Commission
Over $250,000 / 4% / 2%
$150,000 - $250,000 / 5% / 2%
$100,000 - $150,000 / 6% / 3%
$50,000- $100,000 / 7% / 4%
Under $50,000 / 10% / 5%
Short Sales (All price ranges) / 6% / 3%

New construction or multiple listings from the same seller may be negotiated lower but require prior management approval.

Any commissions negotiated below 4% (for 2 sides of a transaction) or below 2% (for a single side transaction)are subject to a 50% ‘split’ on that transaction; please do not negotiate anything below 4% without prior approval!

Fully-Paid 95% AGENTS are exempt from the above, but subject to a minimum 4% on all listing commissions.

Cooperating Broker Compensation:

We cooperate fully with all agents, provided they are working as either a seller’s agent or buyer’s agent. Our commission offered to cooperating brokers is the same for both. (e.g. if your listing carries a 2.5% SAC, it should also carry a 2.5% BAC).

We currently do not offer Broker Agent Compensation on our listings, as this form of Agency has not been proven in a New York State Court to relieve a homeowner of all liability in connection with the acts of a selling agent outside our company.

RENTALS:

RE/MAX Signature Real Estate does not list or rent illegal residential rentals of any kind. If you are listing a residential rental, you must provide the office with a copy of an active permit, a current permit application, or a certificate of occupancy showing the property is zoned for more than one family occupancy. NOexceptions.

RENTAL COMMISSION POLICY:

Residential Rental (apartment or house) / 1 month’s rent/paid by tenant or landlord
Commercial Rental up to $2,000/month / 2 month’s rent/paid by landlord
Commercial Rental over $2,000/month / 7% of Gross Rent for the term of the lease/paid by landlord

LEAD ROTATION:

  • All leads on RE/MAX Signature listings go to the listing agent(s).
  • Leads received from company-paid internet and print platforms, RE/MAX national advertising, brand reputation, walk-in’s, etc. will be distributed among agents as fairly as possible, taking into account agent’s familiarity with the buyer’s area of interest, price point, and agent’s track record of follow-up and conversion.
  • Company-generated Reciprocity Leads (leads we receive on other Broker’s listings) are subject to periodic reassignment within our offices to insure that the leads are being properly followed up.

HUD HOMES:

We are a HUD registered broker. To place a bid on a HUD property, please go to and follow the instructions.

  • Our NAID# RCKLDG259
  • Our Tax ID# 20-3202595

AGENT PURCHASE OF PRIMARY RESIDENCE:

For agents purchasing a primary residence, the agent is free to waiveany commission earned,

however, if the agent elects to accept a commission, the company will be entitled to its normal portion

of the applicable selling agent commission.

AGENT PURCHASE OF INVESTMENT PROPERTY:

Applicable selling agent commission is due to the company.

SALE OF AGENT-OWNED PROPERTY (either primary residence or investment):

If you are selling a home or property which is owned either wholly or in part by you, or which is owned by any legal entity of which you are an officer or member, the following guidelines apply:

  • Listing Fee: Company share of 1.5% listing commission
  • Selling Fee: Company share of the published SAC or BAC, whether sold by agent-owner or any other agent in our company.

Fees above are waived for fully paid 95% Agents provided their account is current.

PLEASE NOTE THE FOLLOWING ITEMS ARE REQUIREDON SALE OF ANY AGENT-OWNED PROPERTY:

  • Home Warranty must be purchased at closing (or before)
  • Property Condition Disclosure must be given to the buyer (no $500. credit)
  • Home inspection by a CERTIFIED Inspector or Engineer
  • Use of MLS forms to complete the sale (i.e. binder and disclosure forms).

The above requirements must be met in order for our Errors and Omissions Insurance to cover you in the event of an action or complaint brought by a purchaser.

AGENCY DISCLOSURE:

All agents are required to comply with N.Y. State Agency Disclosure Law. All buyers, upon initial substantive contact, MUST be made aware of their right to select working with a buyer’s agent or seller’s agent. We also practice dual agency in accordance with N.Y. Department of State directives.

A signed copy of every agency disclosure MUST be turned in to the front desk in order for us to maintain the records required by the N.Y. Department of State.Any fines imposed by Dept. of State due to an agent’s failure to comply with the law will be charged fully against the agent.

FAIR HOUSING:

All agents and company personnel are expected to observe fair housing laws.The following classes are protected under federal laws: race, color, national origin, sex, handicap, religion and familial status. Discrimination of any kind, whether actively engaged in or passively tolerated by an agent, is a violation of federal and state law and will be grounds for immediate termination. If you encounter or have good reason to suspect discrimination in the field, please bring it to the manager’s attention immediately!!

MLS RULES AND ACTIONS AGAINST OUR COMPANY:

All agents are expected to abide by MLS Rules and the Realtor Code of Ethics in conducting their day-to day business. If the company is fined in connection with a violation due to the actions of the agent, the agent will be held personally financially responsible for the entire amount.

Our front desk will be happy to load your listing if you choose, however, please understand that our administrative staffers are not licensed agents and are not generally knowledgeable about MLS rules.

It is your sole responsibility to make sure that what is written on the listing form is in full compliance with MLS rules.

Listings of multi-family dwellings must be accompanied by wither a Certificate of Occupancy or

a current rental permit in order to be advertised or represented as multi-family dwellings.

NO EXCEPTIONS.

TRANSACTION REPORTING IN OFFICE:

Please report all accepted offers to the front desk as they occur.Once the transaction is fully in contract, please fill out and hand in a ‘deal sheet’, along with the required documentation (disclosures, binders, listing agreements, etc.) to the front desk for processing. Under MLS rules and in accordance with good accounting practice, transactions under contract must be reported within 48 hours of confirmation that all parties have signed.

You may elect to hold a property as “available” even though there is an accepted offer in place, however, if your action generates an MLS Rules complaint or violation in the process, you will be solely responsible for any fines levied by MLS.

REQUIRED TRANSACTION DOCUMENTATION:

All agents are required to abide by agency, lead and property condition disclosure as mandated by the NY State and Federal Government. No commission checks will be issued until all relevant documentation is in our file. All documentation associated with your side(s) of the transaction must be in our files prior to closing:

  • Sales Agreement (“binder”) (if signed)
  • Listing Agreement
  • Buyer Agency Agreement (where applicable)
  • Agency Disclosure(s)
  • Lead disclosure (where applicable)
  • Commission Agreement (if signed)
  • Property Condition Acknowledgement

We are required by the N.Y. Dept. of State to keep all pertinent documentation in our central files for a period of at least three years after closing.

COMMISSION CHECKS:

Paying you quickly is a priority with us! You will be paid within 3 business days of your closing, provided the commission is paid in the form of certified check, bank check, or attorney’s escrow account. RE/MAX Signature Real Estate does not accept personal checks in any amount over $500.00 unless guaranteed in writing by the payer’s attorney.We do NOT accept personal checks in any amount for rental transactions.

Please note: commission checks cannot be issued on any transaction unless the necessary documents are in our file (see below).

INVOICING AND BILLING:

All agents will receive a monthly invoice for charges incurred during the previous month. We ask that you please take care of any unpaid balance by the third business day of the month, either in the form of check or credit card. While the amount you owe may be very little, when multiplied by the number of agents in our company, it becomes very difficult for us to carry thousands of dollars in unpaid invoices.

Please note that any unpaid balance after the tenthcalendar day of the month will be automatically deducted from your next available closing check.

Invoice balances over 60 days old will be charged a 5% service fee per month or any portion thereof until paid in full.

AGENT- PAID BUSINESS EXPENSES:

Agents are responsible for the following business expenses on an ongoing basis:

  • Annual RE/MAX International Membership Fee ($390.00)
  • Monthly personal website ($30.00, includes MLS IDX feed)
  • LIBOR Dues (currently $567.00 annually)
  • Errors and Omissions Insurance (currently $250.00 annually, subject to increase if our rates are increased by the insurer.)

Any unpaid charges to RE/MAX International which are over 90 days old will be automatically deducted and paid from the agent’s next available closing, as our company is ultimately held responsible if an agent fails to pay for an extended period of time.

TERMINATION POLICY:

Either you or the company may terminate your association at any time. Upon termination, the following guidelines will apply:

LISTINGS(Conventional/RAPP Agents):

Upon termination without cause, your unshared listings will be released with a 25% referral fee, provided we receive the following:

  • Payment in full of any outstanding invoice balance
  • The homeowner puts a request for release in writing
  • Your next sponsoring broker provides us with a signed referral agreement

If an agent is terminated for cause (i.e. unethical or illegal business practices, non-production,repeated violation of company policy, serious violations of MLS Rules or Code of Ethics), all listings will remain the property of the company and will not be subject to release. Said listing(s) will be reassigned to another agent in the office, no commission payable to terminated agent.

Shared listings which remain with the company and sell prior to the expiration date of the existing listing will be treated asunclosed transactions (see below).

95% fully-paid agents’ listings will be released upon termination with no fee attached, provided their account is paid up to date.

UNCLOSED LISTINGS/SALES UNDER CONTRACT(conventional/RAPP Agents):

Conventional Agents: For transactions accepted or under contract when you terminate, you will be paid at a 50% commission split upon closing.

95% Agents: Entitled to a higher commission split upon termination; please refer to the terms of your 95% or RAPP agreement.

ADVERTISING:

Agents are free to do whatever form of personal advertising they choose. AllNon-company paid ads, postcards, flyers, etc. must be approved in advance by the manager to insure that we are in compliance with N.Y. Department of State guidelines and RE/MAX International Trademark Regulations.

Agents are encouraged to use the RE/MAX Design Center for property highlight sheets, virtual tours, postcards, etc, as they are FREE and look much more professional and ‘upscale’ than most home-grown advertising pieces.

Agents may also avail themselves of substantial rate discounts from Newsday, which are available to us both as a RE/MAX company and as we are our own ad agency.

ELECTRONIC ADVERTISING:

Please note that all forms of electronic advertising (websites, blogs, and social networking sites) are subject to the same Dept. of State guidelines as print media ads. If you are maintaining a website other than the one provided by the company, that site must also comply with all D.O.S. laws, as well as RE/MAX Trademark and Advertising Guidelines.

CUSTOMER/CLIENT PROTECTION AND DISPUTE RESOLUTION:

Our company does not practice buyer or seller “protection”, nor do we recognize protected

‘farm’ areas.

Agents are free to solicit business in any geographic area and in any legal form they choose. Please keep in mind that buyer and sellers are transitory in our careers, and agents should avoid

allowing a customer/client dispute to come between their relationships with their fellow agents.

In the event of a dispute between agents over any given buyer or seller, it is recommended that the agents make every effort to work out a fair resolution on their own. If this is not possible, the manager will meet with both agents together and the manager’s decision will be binding upon both.

INDEPENDENT CONTRACTOR AGRREEMENTS:

ALL Agents are required to execute a new IC (Independent contractor) Agreement annually. Failure to do so will subject both the agent and the company to N.Y. Dept. of Labor action, including but not limited to automatic deduction of federal and state taxes from agents’ commission checks and any applicable penalties levied by the state.

SEXUAL HARRASSMENT:

RE/MAX Signature Real Estate neither condones nor tolerates sexual harassment in any form, defined as any behavior toward a co-worker which is offensive, suggestive, or creates a hostile or uncomfortable work environment for our employees and agents. If you are subject to any such form of behavior, please report it immediately to your manager so that the proper corrective action can be taken.

OFFICE HOURS:

Generally, our office hours are as follows:

  • Monday-Saturday 9:30am - 5:00pm
  • Sunday 9:30am - 4:00pm

Holiday closings or abbreviated hours will be announced in advance when necessary.