Areas of Expertise
This section should include:
- What is the company position on working outside of an area of expertise?
- What does company require as far as education for areas of expertise, i.e., CCIM for commercial?
- Does the company allow its Sales Associates to act as 3rd party negotiators (After Loan Originator License Requirements fulfilled)?
- The unauthorized activity by a Sales Associate who conducts real estate on behalf of anyone other than their employing broker is strictly prohibited. For example, establishing or working for a separate legal entity for negotiation of short sales or conducting property management
Pursuant to A.A.C R4-28-1101(H), in part: A Sales Associate shall not undertake to provide professional services concerning a type of property or service that is outside the salesperson’s or broker’s field of competence without engaging the assistance of a person who is competent to provide those services, unless the salesperson’s or broker’s lack of expertise is first disclosed to the client in writing and the client subsequently employs the salesperson or broker.
Pursuant A.R.S. § 32-2155(C): A real estate broker or real estate salesperson shall not collect compensation for rendering services in negotiating loans secured by real property unless all of the following apply:
Authorized and Unauthorized Real Estate Activities
This section should cover areas of practice that Sales Associates are authorized or not authorized to participate in, or are required to have prior approval of Broker, such as:
- Sales, leases, or exchanges
- Residential, new, resale, commercial, industrial, multi-family, agricultural, or vacant properties
- Property management
- Short Sale
- Real Estate Owned properties (REO)
- Business opportunities
- FHA-VA-owned properties
- Attorney-in-fact/acting on a buyer’s or seller’s behalf
- Unsubdivided land
- Loan Originator (reference Title 6, Chapter 9)
Does the Company allow its Sales, Associates, to establish or work for separate legal entities, acting as a vendor on properties (ex. property maintenance, home staging, etc.)? Such legal entities may not conduct activities requiring a real estate license.
This section should cover:
- The Broker’s policy concerning Sales Associates’ attendance at Company meetings.
This section may include:
- Federal guidelines dealing with credit reports and confidentiality concerns.
- How to respond to a customer/client request that a Sales Associate (other than those managing property) generate, review, fax, and handle a credit report for a client or customer or prospective client or customer.
Disputes between Sales Associates
A licensee shall not allow a controversy with another licensee to jeopardize, delay, or interfere with the initiation, processing, or finalizing of a transaction on behalf of a client (A.A.C. R4-28-1101(D)). Any action for collecting compensation may be filed with a court of law; the Department of Real Estate has no jurisdiction over compensation disputes between licensees (A.R.S. § 32-2152).
This section should address disputes between or among Sales Associates and may include:
- Any written agreement or policy concerning how the dispute is to be resolved.
- Whether the matter will be mediated and if so, by whom.
- If unable to mediate an acceptable resolution, who will determine the outcome.
- What happens if a Sales Associate refuses to cooperate or fails to comply with any ordered or agreed conduct.
- Whether notice of the dispute must be given to the broker, including when and how the notice is to be provided.
- If a lawsuit is filed, who is responsible for judgments, damages, losses, costs, expenses, etc., incurred by Broker/Company in defense of the lawsuit.
- Consequences for non-compliance with policies/agreement.