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rennie Real Estate, LLC Policy Manual POLICY MANUAL FOR LICENSEES TABLE OF CONTENTS
Page INTRODUCTION.......................................................................................... 1 STANDARDS OF CONDUCT......................................................................... 1 Enforcement..............................................................................................................3 Information Systems.................................................................................................4 Copyright Infringement............................................................................................ 6 RENNIE AND LICENSEES............................................................................7 Personal Disagreements..........................................................................................13 Disagreements Concerning Policy or Procedures...................................................14 Disagreements Concerning Real Estate Law, Rules or Transactions.................... 14 LICENSEES AND CLIENTS......................................................................... 15 Presentation of Offers..............................................................................................17 SPECIFIC PROCEDURES FOR REPRESENTING SELLERS........................ 20 SPECIFIC PROCEDURES FOR REPRESENTING BUYERS..........................22 LICENSING AND EDUCATION...................................................................23 GENERAL MATTERS................................................................................. 23 ADVERTISING........................................................................................... 24
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INTRODUCTION
This Policy Manual for Licensees is the property of Rennie & Associates, LLC dba rennie group. (referred to as “rennie,” “Company,” or “Firm”). It is provided for the mutual benefit of rennie and its brokers (collectively, referred to as “Licensees”) licensed or otherwise associated with rennie. Licensees acknowledge their status as independent contractors, as defined more particularly in the Licensee’s Independent Contractor Agreement or Employment Agreement (collectively, “ICA”) between each Licensee and rennie. The policies and procedures outlined in this Manual are provided as a guide to assist Licensees in conducting their business affairs in cooperation with other Licensees and in a manner consistent with rennie’s duties under Washington State law. As independent contractors, Licensees will exercise their own judgment and discretion in the manner in which they carry out the duties under their ICAs subject to compliance with the law. The intent of this manual is to establish office procedures and policies that will assure the mutually beneficial working relationship contemplated by rennie and Licensees alike. Nothing in the Manual is intended to create an employment contract or in any way vary the terms of a Licensee’s ICA. In the event of a conflict between a Licensee’s ICA and the terms of this Manual, the terms of the ICA shall control. rennie may amend or change these policies at any time. Should these policies be amended, rennie will notify Licensees and make the changes available for Licensees’ inspection and use. It is each Licensee’s responsibility to keep apprised of current office policies and any change in this Manual. STANDARDS OF CONDUCT Nondiscrimination It is the strict policy of rennie that all professional real estate services and activities conducted under rennie’s, or its designee’s, supervision be provided equally and fairly to all members of the public without regard to race, color, creed, sex, marital status, sexual orientation familial status, age, national origin, or the presence of any sensory, mental, or physical handicap. As independent real estate professionals, all Licensees are expected to know and abide by all state, federal and local laws and regulations prohibiting discrimination including discriminatory or prohibited actions under the State and Federal Fair Housing Laws. Unlawful discrimination of any kind by Licensees will not be tolerated, nor shall any Licensee be a party to any plan by others to unlawfully discriminate.
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rennie will not discriminate against Licensees, or other office personnel, in any manner inconsistent with state, federal or local law. All Licensees shall report immediately to rennie any violation of this nondiscrimination policy. Sexual and Discriminatory Harassment rennie has a policy of prohibiting all types of discriminatory harassment, including sexual harassment, and harassment based on age, marital status, sex, sexual orientation, race, religion, national origin or other legally protected status. All Licensees are responsible for ensuring that their conduct when acting within the scope of their employment or pursuant to an ICA is free from discriminatory harassment. All Licensees must avoid any action or conduct, which could be viewed as discriminatory harassment. No Licensee against whom a charge of harassment has been made shall in any manner seek reprisal against the person making the charge. No Licensee shall be subjected to retaliation because of having complained of discriminatory or sexual harassment. ● Prohibited harassment can include verbal or physical conduct that shows overt or subtle hostility toward an individual based on that individual’s protected class membership. ● Prohibited harassment can include derogatory comments, slurs, jokes, innuendoes, cartoons, physical harassment, pranks or exclusion based on an individual’s protected class membership. ● Prohibited harassment also includes negative actions toward an individual based on that individual’s participation in activities with members of a protected class group. Sexual harassment is a form of prohibited harassment that occurs when the types of verbal and physical conduct described above are sexual in nature or directed at a person because of gender. Sexual Harassment can include but is not necessarily limited to: ● Vulgar or sexual comments, jokes, stories and innuendo. ● Sexually oriented “kidding” or “teasing.” ● Graphic or suggestive comments about someone’s body or manner of dress. ● Gossip or questions about someone’s sexual conduct or orientation. ● Vulgarity, leering, inappropriate touching and obscene or suggestive gestures.
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● Displaying, accessing or circulating (including via Internet or email) sexually suggestive photographs, cartoons, graffiti, jokes and the like. ● Unwelcome and repeated flirtations, requests for dates and the like. ● Solicitation or coercion of sexual activity, dates or the like by the implied or express promise of rewards or preferential treatment. Sexual harassment may also occur when employment or business opportunities or benefits are conditioned on a Licensee granting sexual favors to, or having a romantic relationship with a Licensee, or employee. Enforcement Discriminatory harassment, particularly sexual harassment, can be difficult to define and misconceptions are common. For this reason, a Licensee must immediately report harassing actions to the designated broker without worrying about whether the conduct involved would be considered harassment in the legal sense. This policy is intended to assist rennie in addressing not only illegal harassment and discrimination, but also any conduct that is offensive and inappropriate. rennie will promptly investigate any concerns of harassment, taking into account privacy and confidentiality consistent with a fair investigation. Licensees working as independent contractors understand that violation of rennie’s sexual and discriminatory harassment policy is grounds for termination of the Licensee’s ICA. rennie will take whatever action deemed necessary to prevent an offense from being repeated. Remedial action will depend on the circumstances, including the gravity of the offense. Drug and Alcohol Use Drug and alcohol use is strictly prohibited while engaged in real estate brokerage services. Accordingly, Licensees are prohibited from possessing, selling, consuming alcohol or drugs; smelling of alcohol or being under any influence of any drug (except as authorized by a physician) or engaging in the consumption of alcohol while they are engaged in real estate brokerage services. Any situations in which duties cannot be properly performed without the assistance of prescribed medication must be reported to rennie. Licensees working as independent contractors understand that violation of rennie’s Drug and Alcohol Use policy is grounds for termination of the Licensee’s ICA. Licensees should also discourage the use of drugs or alcohol by any party during a transaction. Upon discovering that a party is under the influence of either drugs or alcohol, the Licensee should take appropriate action to terminate that day’s activity and suggest that they discuss or complete the transaction another time.
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Confidentiality Certain records of professional real estate activity or records related to the management of the Firm and real estate brokerage services as well as conversations between rennie and Licensees and parties to the real estate transaction are considered confidential. Licensee will be mindful of those matters defined by the Law of Real Estate Agency as confidential and preserve those matters as such. Licensees shall maintain the security of client files and records by limiting access in a manner calculated to assure confidentiality. Licensees shall not discuss confidential client information with anyone who does not have an agency relationship with the client, including other Licensees affiliated with rennie. Informal exchanges of information within the office shall not include confidential client information. Violation of this policy is grounds for termination of a Licensee’s ICA. Licensees shall abide by rennie’ policies and procedures established to ensure Licensees will not have access to and will not obtain confidential information concerning another client involved in the same transaction. Licensees should avoid discussing possible offers with other Licensees. The details of an offer may not be discussed with anyone other than the listing agent. Licensees representing competing buyers shall not attempt to discover the terms or conditions of the other offer. Information Systems Use Information Systems This policy outlines the approach by rennie (“Company”) regarding use of the Company’s electronic resources, including computers, network resources, email and Internet access (the “Company’s Systems”). The Company provides many business tools to its employees and consultants to enhance productivity and improve services offered by the Company, including the Company’s Systems. We require that Company systems be used in a responsible, ethical and lawful manner. The Company has adopted this policy due to the unique nature of electronic transmissions. rennie may cancel or amend this policy at any time in its sole discretion.
WHO DOES THIS POLICY APPLY TO?
This policy applies to all employees of the Company and all other individuals who access the Company’s Systems (“Users”). Users should contact their immediate supervisor or an officer of the Company (“Management”) regarding any questions or concerns in respect to this policy or their usage of the Company’s Systems. COMPLIANCE All Users must comply with this policy, as amended from time to time, and including any particular policies or protocol prescribed by Management or by the Company’s IT Support Members. Because of the potentially serious implications of a breach of this policy, any violation of this policy is grounds for discipline and may result in the immediate dismissal for cause of employees of the Company or, in the case of consultants, the termination of their contracts with the Company.
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MONITORING
To ensure compliance with this policy, the Company may, but is not obligated to, monitor the use of any aspects of the Company’s Systems. Users are advised that they have no expectation of privacy regarding their use of the Company’s Systems.
PERMITTED USE OF THE COMPANY’S SYSTEMS
The Company’s Systems are intended to be used for the Company’s business purposes. The Company’s Systems may be used for User’s personal matters only outside of business hours or during regularly scheduled breaks and provided that such use: (i) does not interfere with the User’s performance of his or her obligations to the Company and (ii) otherwise complies with this Policy. Under no circumstances may the Company’s Systems be used in the conduct of any commercial or other business endeavor that is not directly related to and for the benefit of the Company, and Users may not incur any additional charges, such as in respect of services charged on a time or usage basis, when using the Company’s Systems for personal use.
PROHIBITED USE OF THE COMPANY’S SYSTEMS
Users must not use any portion of the Company’s Systems in furtherance of any illegal, inappropriate, or irresponsible acts. Without limiting the generality of the foregoing, Users must not use the Company’s Systems: (i) to access, store, transmit, copy or distribute any material that could, in any way, be considered fraudulent, sexist, racist, sexually explicit, obscene, threatening, embarrassing, defamatory, or otherwise offensive (ii) to develop, store, or transmit any virus software, time bombs, trojan horses, self-replicating code, worms, or any destructive program, or (iii) for tampering with, hacking, cracking, bugging, or otherwise improperly accessing government or private data.
CONFIDENTIAL INFORMATION AND OTHER SENSITIVE INFORMATION
As a result of their association with the Company’s, Users many have access to confidential information about the Company and its business partners and customers (“Confidential Information”). The Company policies with respect to Confidential Information apply equally in the context of use of the Company’s Systems, including compliance with the Company’s legal obligations to its business partners and customers.
PUBLIC STATEMENTS
A User must not publish statements of other materials that refer to or contain information about, the Company or its affiliates, business partners, or customers or make statements about any third party’s business or products in any electronic communication unless the User has obtained the prior written authorization of Management, or has been directed by Management, to do so.
INTELLECTUAL PROPERTY RIGHTS
Users must not use the Company’s Systems in any manner that infringes the intellectual property rights, including copyright and trademark rights of others. Users must immediately contact Management if they have any questions as to whether a particular activity may infringe a third party’s intellectual property rights. The following are some guidelines regarding third party intellectual property rights: a) Copying, Downloading, and Transmitting Materials – Users may not (i) electronically copy or download third party materials (including graphics, software, media files or data), from the
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Internet or otherwise, to any part of the Company’s Systems or (ii) send materials created by a third party others unless the Company has obtained permission to do so from the owner of the copyright in such materials. b) Software Licenses – Generally, software may be used only as permitted under the terms of a valid license agreement. Accordingly, Users may use such software, only in accordance with the terms of the applicable licenses agreement. Users may not purchase, download, or install on the Company’s systems any software without prior authorization of Management. c) Trademarks – Users may not use or publicly display the trademark of a third party without first obtaining such party’s permission.
When sending correspondence by email, Users should take the same care and should apply the same standard of accuracy, grammar, courtesy and professionalism, as appropriate for traditional forms of written correspondence. The language used in and all other context contained in electronic communications should be suitable for the particular context in which it is used. Because email and electronic documents attached thereto may contain “meta-data” or other information than, although not readily visible, might be discoverable by the recipients of the email or by any other individuals to whom the email is forwarded, Users should take steps to ensure that unintended information is not included in electronic communications. For example, Users should ensure that hidden comments, tracked changes, hyperlinks, and other meta-data is removed from the documents and that each document is otherwise “scrubbed” to remove confidential information relating to transactions with other business partners or customers. Unless specifically authorized by management, Users shall not make any statement in an email that may imply a position of or bind the Company.
COMBATING SPAM
Users must not use their email address to enter promotions, contests, surveys and others in order to prevent and to minimize Spam from entering into the Company’s Systems.
SECURITY
Users must take steps to ensure the security and integrity of the Company’s Systems includes the following: a) Passwords – Users must maintain the confidentiality of all passwords and other security information, and should not print out, store online, or disclose their passwords except as authorized by the Company’s IT Support Members. b) Logging out – Users must log out of Company’s Systems at the end of each night to reduce the risk of security breach. c) Identity – Users must identify themselves accurately and may not use another person’s identification or password, when logging into, using, or transmitting data through the Company’s Systems and may not access another person’s email or electronic documents without the permission of such person. Users may be held responsible for any correspondence or transaction made using their passwords. d) External Access – Users must not access the Company’s Systems from any unauthorized external system or from any system that may store, cause unauthorized access to or use of, or otherwise compromise the confidentiality of any Confidential Information. e) Mobile Devices – Users must maintain the physical and electronic security of all mobile computing devices that contain any Confidential Information. f) Personal Device s – Users must not install or interface their personal devices (including, without limitation, personal notebooks, wireless access points, and external CD-writers) with the Company’s Systems, without prior approval from the Company. g) Usage – Users must not permit outside personnel to use or to service the Company’s Systems unless authorized by the Company’s IT Department.
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h) Data Storage – All Company documents must be saved in the Company’s network directory so that they can be properly archived.
VIRUSES
Viruses can cause significant damage to the Company’s Systems and data. The Company takes responsibility for the installation of virus detection software on computers that are part of the Company’s Systems. However, Users must ensure that such virus detection software is not disabled and that virus detection software has been installed on any other external computer that they use to access the Company’s Systems. Users must immediately inform the Company’s IT Support Members if a virus is detected and must not use any affected computer until the identified virus has been removed. Copyright Infringement rennie may license the use of computer software from a variety of outside sources, including clients. In most cases rennie does not own this software or its related documentation and, unless authorized by the software developer, does not have the right to reproduce it. Licensees shall use the software only in accordance with the relevant license agreement or agreement with rennie’ client and it is the responsibility of Licensees to be knowledgeable of such agreements. Any duplication of copyrighted software, except for backup purposes, is a violation of this agreement and may be grounds for termination of employment or termination of Licensee’s ICA. Licensees learning of any misuse of software on the Information Systems or in related documentation shall immediately notify the designated broker Office and Site Conduct All Licensees are expected to dress and conduct themselves in a professional manner while engaged in real estate brokerage services. Licensees are to treat all clients’ premises as non-smoking. In the presence of clients and customers and while taking property tours, smoking is not permitted.
RENNIE AND LICENSEES
Work For Mutual Benefit Licensees have agreed to use their best efforts and work diligently to solicit clients and customers, sell, exchange, lease or rent properties and promote the real estate brokerage services for the benefit of rennie and rennie’ clients exclusively. Furthermore, Licensees agree to act in a lawful and ethical manner, promoting the professionalism of the Licensee as well as of rennie. Licensees agree to act at all times in the best interest of rennie. Independent Contractor Relationship Nothing in these policies or procedures is intended to vary or conflict with any contractual agreement between rennie and Licensee. In the event there is any conflict
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between the terms of a Licensee’s ICA and the policies and procedures set forth in this Manual, the terms of the ICA will be controlling unless doing so would result in a violation of law or regulation. If an independent contractor, Licenses are responsible for their own business activities and efforts and must secure and maintain all business licenses required by Washington State. Licensees are responsible for maintaining the necessary personal financial records for purposes of reporting income for state and federal tax requirements. Real estate license law requires the designated broker to supervise and control the real estate brokerage activity of Licensees. Licensees acknowledge that such control and supervision apply only to those activities real estate license law requires the Company to supervise and control. Licensees understand they remain solely responsible for the conduct of their own business affairs. Licensees shall have no authority to bind or commit Firm to any contract, promise or course of action without the prior authorization of Firm. Licensees, acting as licensed salespersons performing real estate brokerage services, are authorized to execute commission agreements and other documents binding Firm only when approved by Firm in advance. Licensees shall have no authority to vary the terms of agreements made on behalf of Firm, including commission or compensation terms, from those previously approved by Firm without first obtaining Firm’s express consent. Referral to Home Inspectors All licensees shall comply with Washington laws and rules regarding the referral of home inspectors. In accordance with regulations adopted by the Washington State Department of Licensing (“DOL”), the following policy shall be adhered to:
1.
For this policy, the following definitions apply:
a) A "Property Inspector" includes any person or entity providing or offering to provide inspection services in connection with any aspect of a real estate transaction. b) "Relationship" or "Relationship with an Inspector" shall refer to any relationship a Licensee might have or had in the past. For purposes of this provision, a Relationship includes any Familial Relationship and any Business Relationships.
c) "Familial Relationship" includes any family relationship.
d) "Business Relationship" refers to instances where a licensee has an existing or prior business relationship with an inspector previously. A Business Relationship would include situations where a Firm receives
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any type of compensation or economic benefit in connection with introductions or referrals to a home inspector. 2. Referral Where There is a Relationship. No licensee may refer any person for whom the licensee provides real estate Brokerage services to a Property Inspector with whom they have a Familial Relationship or Business Relationship, as defined above. 3. Confirmation of Licensure. DOL requires that before referring any customer or client to any Property Inspector that the licensee confirm that they are licensed as a home inspector. YOU MAY NOT REFER A PROPERTY INSPECTOR TO ANYONE IF YOU DO NOT KNOW THEY ARE LICENSED. Multiple Listing Service and References to MLS rennie is or may be a member of a Multiple Listing Service (“MLS”). Licensees shall use only contract forms approved by rennie or standard preprinted MLS forms. Licensees shall abide by the then current rules and procedures of MLS and shall defend, indemnify, and hold rennie harmless from any claims, liability, losses, costs and damages (including reasonable attorney fees) arising out of or in any way connected Each Licensee shall be responsible for obtaining all client files associated with such Licensee. Licensees shall direct all written offers, listing agreements, earnest money documents, receipts, correspondence and other real estate transaction documents to the appropriate file. Licensee shall deliver all such files to rennie for maintenance and storage. Licensee may keep copies of such files (an “agent’s file”) only so long as Licensee remains licensed to rennie. Licensees are encouraged to keep a journal of their professional real estate activities and place copies of appropriate entries in the relevant file. Licensees shall keep a telephone log for each listing or prospective sale and file the logs in the appropriate file from time to time. Licensees have an affirmative contractual obligation to cooperate and assist rennie in the maintenance of adequate records of professional real estate activity. Upon the consummation or termination of any transaction, Licensee shall promptly provide rennie with the applicable file, which file shall include any electronic documents, including email, either in electronic media or printed hardcopy. rennie will maintain a file containing transaction records and documents for every transaction. An “agent’s file” is not sufficient, so licensees will regularly update rennie’ file with documentation in order to comply with license law. Licensees must deliver transaction records and documents to rennie within 2 business days of mutual acceptance. After mutual acceptance, licensees must deliver additional transaction records and documents as they are created (and no later than 2 business days later). with any violation of such rules and procedures by Licensee. Recordkeeping Responsibilities and Transaction Files
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rennie will keep an accurate and up-to-date log of all agreements or contracts for real estate Brokerage services in which rennie or its licensees are involved. rennie may maintain its file in hard copy, digitally, or both. All contents of rennie’ file will be readily retrievable, whether in a hard copy format or digitally stored. rennie’ file will be kept and maintained at a licensed location of rennie. The file will contain legible copies of all transaction records and documents, including but not limited to the following: ● Exclusive Right to List and Sell Agreements and other brokerage services agreements such as listing and buyer agency agreements; ● Purchase and sale agreement and all addenda; ● Buyer Brokerage Services Agreement; ● Any documents signed by any party to the transaction (including but not limited to: Form 17, lead-based paint disclosure, real estate pamphlet, etc.);
● Material correspondence; ● Earnest money receipt; ● Closing statement; and ● Any other material documents relating to the transaction.
Transactions that have been closed for at least one year may be maintained at one central facility located in the state of Washington. All records that are maintained off-site will be available for review upon demand of the DOL and maintained in a manner so as to be readily retrievable. A list of all transactions stored off-site will be maintained at rennie’ licensed office. License law requires that rennie retain the file for three (3) years, although the Company’s policy is to retain files for seven (7) years. All records of professional real estate activity conducted by Licensees are the property of rennie. All records shall always be maintained in a confidential manner, maintained at rennie’ office or such other location as designated by rennie where they may not be removed from the office without the Company’s express permission. Notwithstanding the foregoing, duplicate copies may be maintained by Licensees. Licensees must turn over to rennie all records and communication in connection with their professional real estate activity in a timely manner for filing in accord with rennie’ records policy. Licensees may not use confidential information obtained during their association with rennie to the detriment of rennie or any client or customer. Licensees shall strictly obey policies intended to protect the confidential information of clients.
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Supervision of Firms and Managing Firms. RCW 18.85 permits rennie’ designated broker to delegate duties to managing brokers by written agreement signed by both parties. A licensee must hold a managing broker’s license to supervise other licensees (including licensed assistants) in the performance of “real estate brokerage services”. However, a licensee who is not a managing broker may supervise activities of a licensed assistant that are not considered licensed activity (i.e. are not “real estate brokerage services”). The term “real estate brokerage services” (i.e. licensed activity) is defined at RCW 18.85.011(16) and includes: ● Listing, selling, purchasing, exchanging, optioning, leasing, or renting of real estate; ● Negotiating or offering to negotiate any of those services; ● Counseling or advising buyers, sellers, landlords, or tenants in connection with a real estate transaction; ● Issuing a Firm’s price opinion, collecting, holding or disbursing funds in connection with an actual or prospective real estate transaction, and performing property management services. DOL has stated that the following activities do not constitute “real estate brokerage services” for purposes of activities of and supervision of licensed assistants: ● Holding an open house that the licensee he/she assists has listed for sale; ● Showing properties to clients/customers which have already been shown to that client/customer by the licensee he/she assists; ● Providing information to the client/customer that the licensee he/she assists has provided to the assistant. No licensee may supervise licensed assistants engaged in activity other than the activity identified above without authorized written delegation from the designated Firm. Supervision of New Brokers All newly licensed brokers shall be subject to “heightened supervision” during the first two years of their licensure. New brokers subject to heightened supervision must: ● Participate in all required reviews of real estate brokerage agreements and services with the designated broker or authorized delegate;
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● Submit evidence of completion of clock hour education courses to the designated broker or authorized delegate; ● Secure advice or assistance from the designated broker or authorized delegate when offering brokerage services beyond the licensee's level of expertise; and ● Timely submit brokerage service contracts, documents and funds to the designated broker or authorized delegate in accordance with rennie’ Recordkeeping and File Management policy (set forth below). Reporting Problems It is understood that Licensees, though operating as independent contractors, act as agents of rennie and must, therefore, keep rennie informed of their activities. Licensees shall immediately bring any of the following situations to rennie’ attention, and shall immediately provide rennie with copies of any correspondence or legal process in connection with such situations: ● Any substantive complaint involving a real estate transaction or the providing of real estate brokerage services, whether brought by a client, the Department of Licensing or a third party. Any disclosure, or potential disclosure, of confidential client information; ● Any accident or injury that occurs while providing real estate brokerage services; ● Any criminal charge against a Licensee other than a traffic infraction; ● Any civil suit, subpoena, or other legal document concerning real estate activity of the Licensee; ● Any contact by or with the Department of Licensing; ● Any threat of any legal action against the Licensee or rennie resulting from the Licensee’s real estate brokerage services; ● Any act of discrimination; ● Any unresolved dispute with another real estate licensee, in-office or not; ● Any foreseeable dispute or problem relating to the payment or collection of a commission; ● Any other situation involving professional real estate activity that could lead to liability on the part of rennie or anyone associated with rennie; and ● Any notification received from the Department of Licensing with regard to the state of Licensee’s real estate license.
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Designated Firm’s Availability rennie’ designated broker shall be available to Licensees for advice and consultation as reasonably practicable during regular business hours. A telephone number for emergency situations will be available at all times and Licensees shall be responsible for staying apprised of the number. Licensees should not act in situations where the designated broker’s advice or consent is necessary until that advice or consent has been obtained. Legal Assistance Should a question requiring legal advice arise during a real estate transaction, Licensees shall inform the designated broker, who in his or her discretion, shall whether to consult with an attorney regarding the matter. If a lawsuit or administrative action is filed or threatened against a Licensee on account of the Licensee’s professional real estate activity, the Licensee shall notify rennie immediately, and shall provide rennie with copies of all correspondence and legal process in connection with any such action. rennie shall report the matter to the Errors and Omissions carrier as required by the insurance policy. Dispute Resolution and Attorneys’ Fees Licensees shall cooperate with rennie to seek resolution of any third-party complaints, accidents, claims, disputes, or other problems. Licensee and rennie shall share the costs of resolving such matters, including without limitation attorneys’ fees, insurance deductibles, and costs associated with filing liens for commission, in the same proportion as they would share the commission to be earned from the transaction involved. Any dispute between Licensee and rennie relating to payment of a commission shall be arbitrated pursuant to separate Company policy as it now exists or as it may be established. Licensee Business Expenses rennie shall not be responsible for any expense incurred by Licensees in the performance of their business duties unless approved by rennie in writing in advance. Any inspections, services or other inducements offered customers or clients by Licensees must be approved in advance by rennie and shall be at the Licensees’ sole expense. Licensees shall not charge any undisclosed commission or profit on
expenditures made for their principals. Compensation and Commissions
Licensees shall not pay or accept any compensation or commission or payment from or through any party other than rennie. Licensees may not tie any inducements to their commissions, or otherwise in any way share a commission with an unlicensed client,
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customer or other person. Licensees shall comply with the Real Estate Settlement Procedures Act (“RESPA”) when applicable and shall not direct any transaction involving such Licensee’s principal to any lending institution, escrow company, or other service provider in expectation of receiving a kickback or rebate, without first disclosing such expectation to Licensee’s principal. All fees and commissions paid for professional real estate activity must be approved by and in the name of rennie. Licensees may not themselves pay or receive a referral fee directly. Any offer by or to a Licensee to share a portion of a commission must be approved by rennie. Compensation on Termination of Relationship with rennie Unless provided otherwise in writing, a Licensee’s right to commissions following termination of the Licensee’s ICA with rennie, regardless of the reason of the termination, shall be determined pursuant to the Licensee’s ICA. Relations with Other Licensees Licensees are expected to conduct themselves in a professional manner in their relations with other Licensees. Each Licensee working as an independent contractor has agreed to use his or her best efforts to promote their own and rennie’ businesses. To that end, courtesy and cooperation among Licensees is expected. Personal Disagreements Personal disagreements not involving real estate transactions, standards of conduct, office procedures or policies or real estate rules and laws should be resolved between Licensees without the matter affecting other Licensees or involving participation by rennie. rennie is, however, available to informally assist Licensees in resolution of such disagreements. No Licensee shall allow any personal dispute to disrupt the operation of the office or interfere in any way with the transaction of professional real estate activity. Disagreements Concerning Policy or Procedures Any dispute among or between Licensees with respect to the application of the policies and procedures and standards of conduct contained in this Manual shall be immediately brought to the attention of the designated broker for resolution, whose decision in such matters will be final. However, such decision shall not operate to, or be construed to, amend, alter or conflict with any Licensee’s rights or duties under their ICA. Any dispute or disagreement concerning ICAs shall be resolved as provided in the ICA. Disagreements Concerning Real Estate Law, Rules or Transactions Any dispute among or between Licensees involving any real estate transaction or application of real estate laws or rules shall be immediately brought to the attention of the designated broker. Such disputes shall be resolved in accord with applicable real estate rules and law. Decisions in such matters shall be final. Decisions regarding real estate law, rules or transactions are made pursuant to the supervisory duties imposed on
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rennie and rennie’ authorized designees under real estate law and shall not be, or be construed to be, the exercise of direction or control over Licensees in the manner and means by which they conduct their business efforts under ICAs. Assistants Washington law requires that any person who acts as a real estate Firm or managing Firm, as those terms are defined in RCW 18.85, be licensed in this state. State law also makes designated Firm responsible for the professional activities of all Licensees associated with rennie. For these reasons, Licensees shall not hire marketing assistants or without an express written agreement with rennie regarding such party. All documentation, agreements and employment offers must be submitted to rennie for approval. Termination of ICA Relationship The business relationship between Licensees and rennie may be terminated only pursuant to the terms of the Licensee’s ICA. Upon termination, the Licensee shall immediately return all rennie property in the Licensee’s possession, including, but not limited to, all transaction files or documents or computer files pertaining to listings, offers, prospects or other contracts, any other office files, keys, policy manuals, educational materials, lock box keys, signs and supplies, wherever located, including “working copies” and “personal copies.” All files, records, listings, referrals, and prospect and contact lists obtained while working under Firm’s license are the property of the Company. Following termination, the Licensee shall cooperate with Firm regarding any pending real estate brokerage matters. Pursuant to RCW 18.85.320, Firm will notify the Department of Licensing of such termination and surrender the Licensee’s license to the Department. Further, if such termination is for a violation of any of the provisions of RCW 18.85.230, Firm shall file a written statement as required. LICENSEES AND CLIENTS General Duties of Licensees Regardless of whether a Licensee is an agent for a party, and in addition to the specific duties set forth in this Manual relating to representing buyers and sellers and acting as a limited dual agent, a Licensee owes to all parties to whom the Licensee renders real estate services the following duties, which may not be waived: 1) to exercise reasonable skill and care; 2) to deal honestly and in good faith; 3) to present all written offers and other communications in a timely manner; 4) to disclose all existing material facts known by Licensee and not readily ascertainable to a party; 5) to account in a timely manner for all money and property received from or on behalf of either party; 6) to provide the statutory Pamphlet on the Real Estate Brokerage in Washington (the “Pamphlet”) before the party signs an agency agreement, an offer, consents to limited dual agency, or waives any rights; and 7) to disclose in writing in a separate paragraph
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or writing entitled “Agency Disclosure” to all parties to whom the Licensee renders real estate services, before the party signs an offer, whether the Licensee represents the buyer, the seller, both, or neither. Agency Pamphlet As noted above, Washington law requires real estate licensees to provide any party to whom the Licensee renders real estate Brokerage services with a copy of the Pamphlet before the party signs any agreement or waives any rights. All Licensees shall provide clients with the Pamphlet, and the Licensee shall note by date the client’s receipt of the Pamphlet in the client’s file. Licensees shall fully explain the Pamphlet and the agency relationships involved prior to the client signing any agreement. The Pamphlet shall be provided to a client in advance of signing an Exclusive Right to List and Sell Agreement or a Buyer Brokerage Services Agreement. Duration of Agency Relationship Agency relationships commence at the time the Licensee undertakes to provide real estate services and continue until the earliest to occur of the following: 1) completion of performance by the Licensee; 2) expiration of the term agreed upon by the parties; 3) termination of the relationship by mutual agreement; or 4) termination by notice from either party to the other. Such a termination does not affect the contractual rights of either party. Except as otherwise agreed in writing, a Licensee owes no further duty after termination of the agency relationship, other than the duties of: 1) accounting for all moneys and property received; and 2) not disclosing confidential information. Multiple Transactions A Licensee may work with a party in separate transactions pursuant to different relationships, including, but not limited to, representing a party in one transaction and at the same time not representing that party in a different transaction involving that party, if the Licensee complies with the provisions of RCW 18.86 in establishing the relationships for each transaction. Limited Dual Agency A Washington real estate licensee may also legally represent both the buyer and seller with the written consent of both parties as set forth in each party’s brokerage services agreement with the Firm, after the Licensee has delivered to both parties a copy of the Pamphlet, and with full disclosure of the terms of compensation. Licensees shall fully explain the Pamphlet and the agency relationships involved. The Licensee shall note by date both parties’ receipt of the Pamphlet in the client file. In addition to the other duties set forth herein, Licensees acting as limited dual agents have the following additional duties: 1) to take no action that is adverse or detrimental to either party’s interest in a transaction; 2) to timely disclose to both parties any conflicts of interest; 3) to advise both parties to seek expert advice on matters beyond
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the agent’s expertise; 4) not to disclose any confidential information from or about either party; 5) to make a good faith and continuous effort to find a buyer for the property, subject to the limitations set forth in RCW 18.85.060; and 6) to make a good faith and continuous effort to find a property for the buyer, subject to the limitations set forth in RCW 18.85.060. The showing of properties not owned by the seller to prospective buyers or the listing of competing properties for sale by a limited dual agent does not in and of itself constitute action that is adverse or detrimental to the seller or create a conflict of interest. The representation of more than one seller by different Licensees affiliated with the same Firm in competing transactions involving the same buyer does not in and of itself constitute action that is adverse or detrimental to the sellers or create a conflict of interest. The showing of property in which a buyer is interested to other prospective buyers or the presentation of additional offers to purchase property while the property is subject to a transaction by a limited dual agent does not in and of itself constitute action that is adverse or detrimental to the buyer or create a conflict of interest. The representation of more than one buyer by different Licensees affiliated with the same Firm in competing transactions involving the same property does not in and of itself constitute action that is adverse or detrimental to the buyers or create a conflict of interest. Licensees shall fully explain limited dual agency relationships, including the role of Licensee’s Firm, prior to seeking such agreement. The signed consent to limited dual agency shall be attached as an addendum to any written agency agreement between the buyer and the Licensee. The Licensee shall carefully honor the duties imposed on limited dual agents. In a transaction involving a buyer and seller who are both represented by Licensees associated with Firm, Firm shall be a limited dual agent and represent both the seller and the buyer, pursuant to a consent to limited dual agency signed by both parties. In such a situation, each Licensee will continue to represent only the party with whom such Licensee has an agency relationship, unless all parties agree in writing that both Licensees are limited dual agents. All representation shall be consistent with Company policies and procedures established to ensure Licensees will not have access to, and will not obtain, confidential information concerning another client involved in the same transaction. Failure to follow these policies and procedures is grounds for termination of the Licensee’s ICA under that agreement. Offers and Counter Offers Presentation of Offers All offers must be presented to the seller by the listing Licensee in a timely manner. The Licensee must record, for the transaction file, the time and date of presentation. Unless timely presentation would be unreasonably delayed, all offers should be presented to Firm for his or her review prior to presentation to the seller. The Licensee presenting
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the offer must make a full, fair, complete and understandable explanation of the offer to the seller. Licensees shall not favor one offer over another or fail to present an offer or neglect to inform the seller of any potential offer known to the Licensee. The selling agent may be present at the presentation if the agent makes such a request and the seller approves. Client Funds Firm does not maintain separate trust accounts, separate and apart from Firm’s own funds. Any client funds received by Licensee to be held in trust in connection with any transaction shall be remitted immediately to the party identified in the transaction documents. A receipt obtained and provided to the parties to the transaction shall be uploaded in the Transaction File. Professional Misconduct All Licensees shall conduct themselves and their real estate activities in accordance with Washington law and pursuant to the highest ethical standards. Licensees shall not make or permit false or misleading statements with regard to any property or transaction or with regard to Licensee’s status or membership in a real estate association, or commit or participate in any concealment, conspiracy or other scheme, or otherwise engage in any other conduct that demonstrates bad faith, dishonesty, untrustworthiness, or incompetence. Licensees shall not convert any money or other property delivered to Licensee in trust or on condition to their own use or the use of any other unauthorized person in violation of such trust or condition. Licensees shall not accept anything other than cash or its equivalent as earnest money unless that fact is communicated to the owner prior to acceptance of the purchase offer. Licensees shall notify Firm and the real estate program manager of any criminal complaint and civil court verdict or judgment against Licensee within twenty (20) days after Licensee receives notice of the same. Advising Clients Licensees may explain to clients and customers the preprinted provisions of the standard listing, sales and other approved forms the client or customer is asked to sign. Licensees may also explain to customers or clients’ general legal matters involved in the purchase or sale of real property in Washington. Licensees shall not, however, give legal advice to clients or customers and must, instead, refer them to a lawyer for such advice. Licensees shall not themselves propose any contract language or advise clients on the legal effect of any particular clause or term. Licensees shall not suggest, draft or select any title documents, draft or recommend language for any easement, profit or other ancillary agreement between the buyer and seller. No Licensee shall draft or recommend language for any land sale contract, deed of trust, note, mortgage or other legal instrument.
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