ADRE Model Broker Policy Manual-Partnership

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Partnership Agreements between Sales Associates

  • This section may include the following topics: That Sales Associates who elect to be partners shall draft an agreement between themselves.
  • That Sales Associates must have the terms of dissolution clearly spelled out in the agreement.
  • The Company policy regarding the broker’s acknowledgment and approval of a Partnership Agreement between Sales Associates.

See Commissions: Payment of Commissions for further information.

Quick Quiz

Fill in the Blank:
That Sales must have the terms of dissolution clearly spelled out in the .

Personal Safetydownload

This section may include the following topics:

  • Personal Safety
  • Building Security/ Office Closing Procedures
  • Work Injuries/Hazardous Conditions

Pre-Possession and Post-Possession

This section should include:

  • That all pre-possession and post-possession agreements between Sellers and Buyers shall be in writing.
  • That Sales Associates must recommend to their clients to seek appropriate counsel (including tax, legal, insurance, etc.) concerning risks associated with prepossession or post-possession.
  • What forms and form versions a Sales Associate shall use.
Quick Quiz

Fill in the Blank:
That all pre-and post-possession agreements between Sellers and Buyers shall be in .

Request for Information or Documents by Subpoena or Government Officials.

This section should cover:

  • How requests for documents should be handled.

Sales Associate Expenses

This section should clearly establish whether the Sales Associate or the Broker/Company is responsible for various expenses, such as:

  • E & O Insurance
  • Automobile Insurance
  • Office Space and equipment (computers and software; phone, including long distance, 800# service; pagers; postage (including Fed Ex and UPS); facsimile; copier; etc)
  • Clerical/Secretarial support
  •  Advertising
  • Liability Insurance
  • FICA
  • Taxes
  • Health Insurance (availability of health or life insurance, or possible sources, such as the NATIONAL ASSOCIATION OF REALTORS®, the Arizona Association of REALTORS®, or the local Association of REALTORS®).

Short Sales

This section should cover:

  • Whether Sales Associate is required to recommend the seller to seek legal and tax advice before to a placing property on the market.
  • Statement that the Sales Associate may not receive additional compensation from any source (seller, buyer, lender or otherwise) for negotiating a short sale, unless the real estate licensee is also licensed as a loan originator by the Arizona Department of Financial Institutions (“DFI”) and the requirements of A.R.S. § 32-2155(C) are met .
Quick Quiz

Fill in the Blank:
Whether Associate is required to recommend to the seller to seek legal and tax advice before placing a property on the .

32-2155. Restriction on employment or compensation of person as broker or salesperson

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:

1. The broker or salesperson is licensed under title 6, chapter 9 or is an employee, officer or partner of a corporation or partnership licensed under title 6, chapter 9.

2. The broker or salesperson has disclosed to the person from whom the compensation is collected that the broker or salesperson is receiving compensation both for real estate brokerage, when applicable and for mortgage broker services.

3. The compensation does not violate any other state or federal law.

Statement regarding how the Sales Associate, negotiating a short sale with a lender on behalf of the seller, must comply with the Federal Trade Commission (“FTC”) Mortgage Assistance Relief Services (“MARS”) Rule.

Quick Quiz

Fill in the Blank:
The does not violate any other state or federal law.

Signs

This section should cover:

Any restrictions or policies about signs, such as:

32-2153. Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; definitions

A. The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under this chapter if it appears that the holder or applicant, within five years immediately preceding, in the performance of or attempt to perform any acts authorized by the license or by this chapter, has

12. Placed a sign on any property offering it for sale or for rent without the written authority of the owner or the owner’s authorized agent.

  • Ensuring that the sign is in conformance with A.A.C. § R4-28-502(A) thru (J).Whether a Sales Associate is required to use sign companies or whether the Company handles sign placement

R4-28-502. Advertising by a Licensee

A. A salesperson or broker acting as an agent shall not advertise property in a manner that implies that no salesperson or broker is taking part in the offer for sale, lease, or exchange.

B. Any salesperson or broker advertising the salesperson’s or broker’s own property for sale, lease, or exchange shall disclose the salesperson’s or broker’s status as a salesperson or broker, and as the property owner by placing the words “owner/agent” in the advertisement.

C. A salesperson or broker shall ensure that all advertising contains accurate claims and representations and fully states factual material relating to the information advertised. A salesperson or broker shall not misrepresent the facts or create misleading impressions.

D. A school shall include its name, address and telephone number in all advertising of Department-approved courses. The school owner, director, or administrator shall supervise all advertising. The school owner shall ensure that the school’s advertising is accurate.

Quick Quiz

Fill in the Blank:
A or broker shall ensure that all advertising contains accurate claims and representations, and fully states factual material relating to the advertised.

E. A salesperson or broker shall ensure that all advertising identifies in a clear and prominent manner the employing broker’s legal name or the dba name contained on the employing broker’s license certificate.

F. A licensee who advertises a property that is the subject of another person’s real estate employment agreement shall display the name of the listing broker in a clear and prominent manner.

G. The designated broker shall supervise all advertising, for real estate, cemetery, or membership camping brokerage services.

H. A licensee shall not use the term “acre,” either alone or modified unless referring to an area of land representing 43,560 square feet.

I. Before placing or erecting a sign giving notice that specific property is being offered for sale, lease, rent, or exchange, a salesperson or broker shall secure the written consent of the property owner, and the sign shall be promptly removed upon request of the property owner.

J. The provisions of subsections (E) and (G) do not apply to advertising that does not refer to specific property.

  • When signs are to be placed and removed.

Smoking

This section should cover:

  • The Company’s smoking policy.

Submission of Documents

This section should cover:

  • That the time period required for the Broker to review, initial, and date their review of purchase contracts, and similar documents is five (5) days from the execution of the contract (A.R.S. § 32-2151.01(G)). Effective July 20, 2011, the broker review time will change to ten (10) business days from the execution of the contract.

32-2151.01. Broker requirements; record keeping requirements; definition

G. The designated broker shall review each listing agreement, purchase or nonresidential lease agreement or similar instrument within ten business days of the date of execution by placing the broker’s initials and the date of review on the instrument on the same page as the signatures of the parties. A designated broker may authorize in writing an associate broker who the designated broker employs to review and initial these instruments on the designated broker’s behalf.

  • The policy of the Company regarding the time frame for submission of all documents to the Broker.
Quick Quiz

Fill in the Blank:
A broker may authorize in writing an associate broker who the designated broker employs to review and initial these instruments on the designated broker’s .

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