occurs, the Associate will promptly notify the Broker in writing so that the Broker can take appropriate steps in rectifying the conflict for the mutual
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Office Policy Manual Guide Purpose of the Office Policy Manual Guide The Office Policy Manual Guide is designed as a tool to assist Brokers who are drafting or revising Office Manuals. The Tennessee Association of Realtors ® provides this material solely as a guide and highly recommends the review of your legal counsel before implementing your finished Office Policy Manual. Goals of an Office Policy Manual 1. A clear Associate relationship to the Broker is established pertaining to the rights and respons ibilities owed between both parties. 2. By providing standard operating procedures, disputes can be avoided and proactively addressed through the implementations of standard practice and procedures. 3. Productivity can be enhanced when the processes are cl early identified and laid out in a manner that makes them second nature. Implementation of an Office Policy Manual 1. Upon the new affiliation between the Associate and Broker, each Associate’s orientation should include a copy of the Office Policy Manua l including a signed acknowledgement that the Associate has read and understands the material set forth. You should also reserve the right to amend and make changes to policies. 2. The contents should be reviewed in a formal atmosphere setting in which the material has been fully presented and the Associate understands the policies. Regular staff meetings provide ideal times to review your Office Policy Manual. If you have a formal orientation for new associates, this is considered an ideal time for present ing the Office Policy Manual. All new Associates should be trained on the policies set forth in the manual. 3.1
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Table of Contents Chapter 1 Page Broker and Associate .. .. .. 3.7 Mutual Benefit 3.7 Broker and Associate Agreement of Mut ual Benefit Adhere to the Code of Ethics and Bylaws of Local Board and MLS Associate Affiliation Requirements 3.8 Real Estate License and Mandatory Continuing Education, Mandatory Errors & Omissions Insurance Coverage, Automobile Insurance Coverage Memb ership in the Board of REALTORS ® Miscellaneous Associate Expenses Automobile Professional / Business Expenses 3.9 Resolution of Disputes 3.10 What Constitutes a Dispute Intra – Office Disputes Between Associates Disagreement Between Broker and Associate I ndependent Contractor 3.11 Definition Independent Contractor’s Agreement Tax Filing Requirements Workers’ Compensation Requirement Broker Authorization to Contract Chapter 2 Office Policies 3.13 Discrimination Issue 3.13 Federal Fair Housing Laws Tenn essee Association of Realtors ® Code for Equal Housing Opportunity Discrimination Accusations Fair Employment Practices Harassment 3.14 Office Security 3.15 Office Appearance 3.15 Dress Code 3.15 Eating in the Work Area 3.15 Parking 3.15 Changes in Name, Address and Telephone Number 3.15 Telephone Use 3.15 General Long Distance Calls Messages for Other Associates
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Computer Use 3.16 Information Systems Policy Proprietary Equipment and Information Information Systems Usage Information S ystems Conduct Computer Safety and Security Measures Viruses Copyright Infringement The World Wide Web Summary Maintaining Contact with the Office 3.19 Drug and Alcohol Use 3.19 Substance Use Client or Customer Substance Use Smoking Legal and Tax Advice Prohibited 3.20 Legal Advice Tax Advice Problem Reporting Procedures 3.20 Contacting the Broker 3.21 Emergency Contacts Branch Offices Confidentiality 3.21 Office Duty Time 3.22 Purpose Rotation Sales Meetings 3.22 Purpose Attendance Requirements Ob servance of Safety Practices 3.22 Vacation / Leave Time for Associates 3.23 Sign Policy 3.23 Sign Riders Direction Signs Sold and Offer Pending Signs Expired Listings Employee Office Hours 3.24 Observed Holidays Legal Assistance for Associates 3.24 Le gal Counsel Involvement TAR Legal & Ethics Hot Line Lawsuits and Threats of Action Arbitration Code of Ethics & License Law Violations Inspection Services, Surveys, Etc 3.25
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Document Control 3.25 Document File Personal Assistants 3.25 U nlicensed Assistants Licensed Assistants Agency 3.27 Company Agency Policies 1 – 5 Chapter 3 Advertising 3.30 Real Estate Advertising 3.30 Advertising Media Open House Ads 3.30 Allocation and Costs of Advertising 3.30 TREC Advertising Rules 3.30 Gen eral Principles Advertising for Franchise or Cooperative Advertising Groups Fair Housing Advertising 3.31 Equal Opportunity Slogans and Logos Prohibited Advertising Language Chapter 4 Compensation 3.33 Commission and Fee Rates 3.33 Associate Commissio n and Fee Compensation 3.33 Definition Schedule of Compensation Partial Receipt of Commissions 3.33 Reduction of Commissions and Fees 3.34 Referrals and Bonuses 3.34 Commission Agreements and Disputes 3.34 Entitlement to Commission Inter – Office Dispute s of Compensation Intra – Office Disputes of Compensation Chapter 5 RESPA Policy 3.35 Prohibition against Kickbacks and Unearned Fees What is Permitted Key Referral Fee Reminders Chapter 6 Listing Policy 3.37 Agency Disclosure 3.37
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Residential Property Condition Disclosure 3.37 Disclosure of Adverse Facts Lead Based Paint (LBP) Disclosure Requirements 3.38 Disclosure Requirements Properties and Transactions Subject to LBP Rules Target Housing Excluded Properties Transactions Subject to LBP Rule s Exempted Transactions Agents Covered Buyer Opportunity to Inspect for LBP Timing of LBP Disclosures Agent Responsibilities Listing the Residential Property Listing Contracts 3.41 Filing Listing Documentation 3.41 New Listing Tours 3.41 Security of Li sted Property 3.42 Cancellation of Listing Contract 3.42 Listing Protection 3.42 Cooperating Compensation 3.42 Chapter 7 Buyer’s Brokerage 3.43 Associates Capacity as Buyer’s Agent 3.43 Buyer Representation Agreement Agency Disclosure Negotiations Co mpensation Cooperation as Listing Agents with Buyer’s Brokers 3.43 Dual Agency 3.44 Chapter 8 Selling Policies and Procedures 3.45 Information Provisions 3.45 Lead Generation 3.45 Agency Disclosure 3.45 Servicing the Prospects 3.45 Drafting Offers 3.46 Confidentiality of Offers 3.46 Intra – Office To Cooperating Brokers Timeliness in Offers 3.46 Delivery of Accepted Offers 3.47 Referral Fees 3.47 3.5
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Chapter 9 Closing Procedures 3.48 Listing Associate Responsibilities 3.48 Failed Transaction s 3.48 Attorneys at Closing 3.48 Deposits and Earnest Money 3.48 Handling Disbursement Chapter 10 Antitrust 3.49 Summary of Principal Federal Antitrust Laws 3.49 The Sherman Act The Clayton Act The Robinson – Patman Act The Federal Trade Commission Act Antitrust Compliance 3.50 Document Retention Policy Consequences and Costs of Failure to Comply Chapter 11 Termination of Affiliation 3.55 *Divisions of expenses vary from firm to firm. TAR is not suggesting any predeterm ined arrangement and those listed above are not necessarily a representation of the norm. 3.6
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Introduction The Office policies and procedures are provided in this manual for the standard operating procedures of this firm. The Office Policy Manual is to be used as a guide in your day to day operations as a member of this firm. It will help promote cooperation among Associates and between Associates and Management. The manual provides clear understanding of standard practices and procedures to help avoid d isputes and also to help settle disputes. And lastly, the manual will help you by guiding you in your activities and hopefully enhance your productivity. The right to amend and change content of the Office Policy Manual is reserved for the Broker on an as needed basis. The amendments and changes shall be reviewed during meetings directly following any change to the policy. It is the responsibility of each Associate to keep abreast of all policy changes and to understand the policy set forth. Absence from a ny meeting discussing changes to policy does not provide an exemption to any Associate from these responsibilities. Chapter 1 Affiliation: Broker and Associate Mutual Benefit For the working relationship of the Broker and Associate, the following policie s will be used to establish mutual benefit to both parties: Broker and Associate Agreement of Mutual Benefit professionalism by promoting positive relations, e nhancing the business’ reputation and its profits, and increasing community goodwill. business opportunities listed with the Broker and to include t he solicitation of new clients and customers for future business. Furthermore, the Associate agrees to act in lawful and ethical manners promoting the professionalism of himself as well as the firm to the greatest mutual benefit of both parties. ciate, as agent for the Broker, agrees to act on the behalf of the Broker. If a conflict of interest occurs, the Associate will promptly notify the Broker in writing so that the Broker can take appropriate steps in rectifying the conflict for the mutual pr otection of both parties involved in the transaction. 3.7
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Adhere to the Code of Ethics and Bylaws of Local Board and MLS binding on, o r applicable to, Tennessee real estate brokers and affiliate brokers. Estate Broker License Act, The Code of Ethics of the National Association of R ealtors ® , Local Board/Association governing documents (Bylaws, MLS Rules and Regulations, etc.) will be followed by the Broker and Sales Associates. and/or Bylaws, and the Rules and Regulations of the Multiple Listing Service. Associate Affiliation Requirements* The following provisions will be complied with at the Associate’s personal cost: Real Estate License, Mandatory Continuing Education, Mand atory Errors & Insurance Coverage, Automobile Insurance Coverage Estate Commission (TREC) to the applicable renewal date h by the Tennessee Real Estate Commission premiums, or fees relating to name changes. Membership in the Board of REALTORS ® to become a member of the local Board/Association, Tennessee Association of REALTORS ® , National Association of REALTORS ® and to be responsible for all applicable dues and fees. ssociation in which the Broker holds membership. The associate can also join other Boards/Associations as a secondary membership if the broker holds no membership in the particular Board/Association. of the Tennessee Association of REALTORS ® , the National Association of REALTORS ® and may belong to any of the Institutes and Societies of the National Association of REALTORS ® . ions to which Broker must adhere as a member thereof. *Divisions of expenses vary from firm to firm. TAR is not suggesting any predetermined arrangement and those listed above are not necessarily a representation of the norm. 3.8
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