BESNER AUCTION AND REALTY POLICY AND PROCEDURE MANUAL
This is not intended to be a boilerplate template for other broker’s policy
and procedure manual. It expresses
only our rules, requirements and goals. Each
broker and associate broker should have his/her own legal counsel review any
manual that is intended for his/her office.)
STATEMENT OF GOALS: Besner Auction and Realty is in the service business and its
reputation is build upon knowledge, expertise, action and integrity of its
brokers, associate brokers, salespeople and employees. It is a requirement that
all of its personnel act in accordance with the highest professional and ethical
standards. We are committed to delivering real estate services in a manner which
meets or exceeds these standards. Our
2.) EQUAL OPPORTUNITY
Company insists and requires that all of personnel provide equal opportunity in
all real estate business transactions. They shall keep informed on all matters
regarding the requirements imposed by all equal opportunity and fair housing
laws and shall act in accordance with these laws. Service shall be offered to
all clients and customers regardless of race, color, religion, national origin,
sex, ethnic background, age, marital or familial status, disability or any other
classification protected by law.
personnel shall print, display or circulate any statement or advertisement with
respect to the sale or rental of a property that indicates any preference,
limitation or discrimination on the basis of any classification of protected
Company is committed to fulfillment of all applicable standards for oversight by
supervisory personnel which shall, at a minimum meet the requirements
promulgated by the Michigan Occupational Code.
company's personnel, whether a licensed real estate agent or not, shall comply
with these minimum standards. The company and all personnel must conduct
themselves in a manner which meets these standards. The company encourages
everyone to act in a manner which exceeds these minimum standards in order to
assure better service to clients and customers and to minimize the risk of
brokers and associate brokers having supervisory responsibility shall maintain
open, direct communication with all personnel.
Such communication must be direct and conducted on a regularly scheduled
basis. It may be in person, by radio, telephone or electronically. Every effort
will be made to assure that a broker or associate broker is available on a
continuous basis for the purpose of such communication. All personnel shall
cooperate fully with the broker and associate brokers to assure that this
communication if fully maintained.
Broker/Associate Broker Availability: a broker or associate broker will
be available on a regularly scheduled basis to do all of the following:
the work of all supervised individuals;
consultation for the supervised individual;
education the supervised individual in the performance of the individual's
company is committed to the compliance by its personnel with the standards
imposed by law and by the professional organizations to which the company
It is required that all real estate licensees with the company shall
familiarize themselves with the Occupational Code and the Administrative Rules
promulgated in accordance with the Code, and with the Bylaws, Rules and
Regulations of all professional
organizations of which the company is a member.
personnel are required to keep themselves updated on all changes in the law
insofar as they affect real estate licensees.
All associate brokers and salespeople of the company shall comply with
all Codes of Ethics, Standards of Practice and other rules and regulations
imposed upon them by virtue of membership in any professional organizations.
Commission rates of the company are established solely by the company and
are based upon the company assessment of its costs and market conditions.
Commission rates are not set by any agreement with, or suggestion from,
any person or entity, other than the client with whom a listing or other
agreement of sale, purchase or lease of property is signed.
Company personnel shall not discuss with anyone the setting of commission
rates charges by the company, or, for that matter, by any other real estate
Company personnel shall make no reference to a "going" rate for
real estate services. It is expressly understood that all commission rates are
strictly negotiable between the company and its principals.
The amount of compensation to be paid to any subagent or buyer's agent
shall be determined solely by the company. Such compensation is not intended to,
nor may be used to, induce any other real estate firm or agent to raise or lower
the commission which may be charged.
If company personnel are present when other real estate licensees outside
of the company begin a discussion of fees, they must remove themselves from that
conversation. At no time shall any company personnel participate in such
company personnel are unsure of how to respond to the concerns of potential
client or customer, or are present during an unauthorized discussion of fees
they should immediately contact the broker.
All information disclosed to company personnel during the course of their
activities shall not be divulged to anyone without consent of the principal.
Unauthorized use or disclosure could result in serious harm to the company
and/or termination of the offending person.
7.) ASSOCIATE BROKERS
AND SALESPERSON • INDEPENDENT CONTRACTOR OR EMPLOYEE STATUS
otherwise specifically provided in the agreement between the company and
associate brokers and salespeople, they are independent contractors and not
employees. (this agreement is in writing).
company's policy is to have a written Independent Contractor Agreement or
Employment Agreement setting forth the terms and conditions of the relationship
with the company before commencing work.
contained in the manual shall impair or affect the independent contractor status
of the company's salespersons or associate brokers retained by the company
pursuant to Independent Contractor Agreements.
All personnel shall:
Comply with all laws and rules governing real estate licensees.
Comply with directions of supervisory personnel.
Support company policies and objectives.
Cooperate with all other personnel.
Act as a professional at all times.
Pay attention to details.
G. Make full
disclosure of agency status.
Properly document all transactions.
USE OF ALCOHOLIC BEVERAGES AND DRUGS
one is to drink any alcoholic beverage on any day prior to conducting real
Drug use of any kind, other than properly prescribed and used medicines
is strictly prohibited at all times.
Company personnel may not use the offices and may not transact business
if they are under the influence of alcohol or drugs.
10.) ABILITY TO BIND
No company personnel shall have the authority to obligate or bind the
company in any way without the prior, written consent of the company.
The only exception is that salespeople and associate brokers shall have
authority to sign listing
agreements on behalf of the company which conform to the established requirement
of the company using approved forms.
actions of company personnel shall be performed only in accordance with this
manual and only on behalf of the company. No personnel shall be permitted to
sell, deal or act in any way that compromises the authority of the company to
supervise or direct the activities of such personnel in accordance with
Compensation for each salesperson or associate broker is contained in the
Independent Contractor or Employment Agreement, as applicable.
Company personnel shall not accept or receive compensation of any kind
from any other source for, or in connection with their duties and obligations
for and on behalf of the company.
All personnel shall comply with all applicable provisions of the
There must be full disclosure to all parties of the acceptance of any
referral, placement or similar fees, to the extent that the company approves, in
12.) TERMINATION OF
Termination of personnel is governed by the terms of the Independent
Contractor or Employment Agreement
termination, all contracts, equipment, records, files, supplies, reference
material, prospects and keys shall be immediately relinquished by the terminated
individual to the company.
All listings, buyer's broker and other agreements, remain the sole
property of the company. The terminated individual shall take no action which
may jeopardize or impair the company's rights in them.
D. All personnel agree to keep the Department of Labor and Economic Growth updated as to their current address during the time they are licensed and for seven years thereafter, or for a period of three years after all complaints against the licensee have been closed by the Department.
13.) SALES AND
Sales, administrative and educational meeting are held on a regularly
scheduled basis by the company. Attendance at these meetings is voluntary except
to the extent required by
All advertising must comply with company's policies as well as Rules
governing policies and procedures governing advertising of licensee's own
All ads must contain the broker's name as licensed, clearly indicate the party
advertising is a broker and include the broker's street address or telephone
All ads must contain the broker's name as licensed, clearly indicate the party advertising is a broker and include the broker's street address or telephone number.
15.) LISTING POLICY
Company listing policy shall be in compliance with the Occupational Code
and - Rules. Company procedure regulating obtaining of listing, listing
agreements and execution and delivery to the seller.
16.) HANDLING OFFERS
All personnel shall promptly deliver all written offers and counteroffers
to the offeree in accordance with
Licensee shall deliver to an offerer a signed copy of the offer to
purchase immediately after it has been signed by offerer. A licensee shall
promptly tender all written offers to purchase to the seller upon receipt. Upon
obtaining a proper acceptance of the offer to purchase, signed by the seller,
the licensee shall promptly deliver true executed copies of the acceptance to
the purchaser and seller. A licensee shall make certain that all terms and
conditions of the real estate transaction are included in the offer to purchase.
Only sales agreements, addenda and other forms specifically approved by
the company shall be used by company personnel. Forms currently in use are
attached in the Appendix of this manual.
All deposits received by the salesperson shall be immediately turned over
to the company for deposit into its trust account in accordance with applicable
law. All company personnel must familiarize themselves with this rule of law to
assure that deposits are timely made.
Company may elect to use a title company to act as escrowee so long as
both buyer and seller agree in writing.
COOPERATION WITH OTHER BROKERS
Company will cooperate with other brokers at whatever percentage of
commission has been agreed to by the seller.
19.) REFERRAL POLICY
All referral, cooperation, co-participation or compensation agreements
between individuals in the company shall be in writing and approved by the
Work or transactions which are not handled by the company or otherwise
outside the expertise of its personnel shall be referred elsewhere upon a
compensation basis approved by the company.
Unless otherwise approved by the broker, the company does not work on or
handle the following:, landlord representation or tenant representation and
these activities should be referred to companies dealing in such areas of
20.) ARBITRATION OF
By accepting a position with this company, all salespersons and associate
brokers agree that disputes between them are to be settled by arbitration within
the company in accordance with the provisions herein and agree to be bound by
such arbitrating result. Any arbitration award may be enforced by the prevailing
party in a court of competent jurisdiction.
If salespeople and associate brokers have a dispute which they are unable
to settle, either party may submit their grievance in writing to the principal
broker for the company.
The broker shall then select two salespeople or associate brokers who are
not involved in the dispute as arbitrators to act with them in resolving the
The three arbitrators will sit as an arbitration panel to hear and decide
the dispute in accordance with arbitration rules established by the American
The results of arbitration shall be binding upon the parties and may be
enforced in any court of competent jurisdiction.
21.) DISPUTES WITH
OUTSIDE PARTIES (IF APPLICABLE)
decision to initiate, settle, or compromise any dispute, arbitration or
litigation with an outside party lies solely with the company.
If it becomes necessary for the company to sue for a commission, all
expenses, including attorney's fees, shall be borne by the company and
salesperson or associate broker in the same percentage as their respective
portion of earned commissions, whether or not such a commission is recovered.
the company is sued as a result of activities or conduct of the salesperson or
associate broker, the cost of defense, including attorney's fees, shall be borne
by the company and salesperson/associate broker in the same percentage as their
respective portion of the commission earned on the transaction; provided, if the
company is found liable as a result of activities or conduct of the
broker shall reimburse the company for its cost, including attorney's fees.
FOR REPORTING CASH PAYMENTS OVER $10,000.
The company is required to report all cash payments over $10,000. to the
IRS Form 8300 in accordance with applicable IRS Regulations. All company
personnel must familiarize themselves with the current IRS regulation and report
to the company any cash payments over $10,000. in any transaction in which they
Company personnel who drive on company business must maintain automobile
liability insurance coverage for personal injury and property damage in the
minimum amount of $500,000. A
current, valid certificate of insurance must be provided to the company.
24.) FEES AND DUES
Fees and Dues which are the sole responsibility of the Company personnel
include, but are not necessarily limited to, the following:
Association of Realtor dues, Multiple Listing Fees, computer access
charges, Chamber of Commerce Dues.
TO PURCHASER FOR TITLE EVIDENCE
shall recommend to the purchaser that a fee title policy in the amount of the
purchase price be furnished to the purchaser by the seller, issued or certified
to the approximate date of the closing of the transaction.
TO PARTIES FOR OTHER PROFESSIONAL ADVICE AND OTHER OUTSIDE SERVICES
All personnel understand and agree that the Company is not an inspection
firm, attorney, constructural engineer, accountant, tax consultant, financial
planner, and shall when such need arises suggest of outside services.
Personnel shall recommend that inspection firms and other professional
service providers be utilized. If
personnel is receiving compensation in connection with such referral it may not
be in violation of applicable federal, state and local law.
Such compensation may only be accepted with written permission of the
client of specific compensation. If
the additional compensation is from a mortgage company, personnel shall obtain
permission from both buyer and seller.
It is this companies policy to practice a tradition style of agency.
When an agent signs a service provision agreement all affiliated
licensees shall be deemed to be acting in the same capacity as the agent signing
the agreement. If a buyer under
contract with one of the agents becomes interested in a piece of property that
is listed in our company, it is our policy to get written permission from both
buyer and seller to act as dual agent in that transaction before proceeding.
In no instance will undisclosed dual agency be tolerated.
28.) HANDLING OF
CLIENT AND CUSTOMER COMPLAINTS All
complaints shall be reported to the supervising broker or associate broker.
If the salesperson is able to handle the complaint without assistance,
this shall be documented and placed in the file of the transaction with a copy
of the report delivered to the supervising broker or associate broker.
INTERESTS IN LISTED PROPERTIES It
is the policy of this company, in compliance with the occupational code to
disclose the license status of the buyer before the offer to purchase is
presented to the seller. Written
evidence of this disclosure shall be signed by the seller and maintained in the
file with the transaction. No
licensed personnel in this company shall receive
any portion of the commission without written permission of the seller of
specific compensation being paid to the licensee.
DISCLOSURE OF MATERIAL FACTS If one
of the licensed personnel of this company is selling personally owned property,
the licensed status of the owner shall be disclosed,
before the offer to purchase is signed.
Satisfactory written proof of this disclosure shall be retained in the
file for the transaction. Personnel
shall recommend to clients that all material facts concerning the transaction be
disclosed. Personnel shall not
assist the client in concealing any material fact which could effect the
USE OF SELLER'S DISCLOSURE STATEMENTS Personnel
shall provide seller’s disclosure statements to all sellers of one to four
family residential property and advise the seller of their requirement to fill
out and sign the form. Personnel
shall not assist the seller in the preparation of such statement, but should
however advise the seller not to guess, but only to affirm those items of which
they have personal knowledge. If the seller ha no knowledge as to the condition
of a particular feature, seller should be advised that there is a column for
checking unknown. While there is no
requirement by law that seller’s disclosure statements are required in vacant
land or commercial property, personnel shall provide sellers with such forms if
sellers wish to utilize them.
All personnel shall follow the closing procedures established from time
to time by the company.
All closing must be conducted under the direct supervision of a broker or
associate broker and shall be in conformity with applicable law, including
delivery of closing statement to the parties signed by the broker or associate
No closing statement shall be signed or altered by a salesperson.
PARTY ESCROWEE DEPOSITS: All
earnest money deposits shall be presented to the broker immediately upon
notification that the offer to purchase has been accepted.
If both seller and buyer agree to use a title company to act as escrowee,
personnel shall obtain buyer and seller’s written permission and shall deliver
the earnest money deposit to the title company within two business days of
notification of acceptance of the offer to purchase.
34.) DISBURSEMENT OF
Disbursement of an earnest money deposit shall be made at consummation or
termination of the agreement in accordance with the agreement signed by the
parties. However, any deposit in the
trust account of the broker for which the buyer and seller have mad claim shall
remain in the broker’s trust account until a civil action has determined to
whom the deposit must be paid, or until the buyer and sell have agreed, in
writing, to the disposition of the deposit.
The broker may also commence a civil action to interplead the deposit
with the proper court.
35.) ERRORS AND
The company carries error and omission insurance with ________
The basic terms of the insurance are_________________
company will pay the base rate of the total premium. The remaining will be
prorated and charged to each salesperson or associate broker.
In the event of a claim, the "deductible" amount under the
policy shall be paid at the same percentage as the compensation agreement with
the salesperson or associate broker.
36.) FLOOR TIME
is opportunity time. A sign up sheet
shall be maintained. Any personnel
desiring to work floor time shall sign up on that sheet.
If someone is unable to work the floor time for which they have
volunteered, that person shall be responsible for making sure that someone else
is covering that time. Personnel may
work floor time by way of call forwarding. In
no instance shall personnel sign up for floor time and not cover such time.
AND FILES A
copy of all correspondence on the company letterhead shall be provided to the
Copies of real estate transaction files may be kept by each individual agent;
however, the original shall be on file at the office..
Copies of real estate transaction files may be kept by each individual agent; however, the original shall be on file at the office..
38.) DRESS CODE
attire, so as to present the correct professional image, shall be worn at all
times when conducting business or when at the office.
Attire appropriate to the location or occasion shall be considered
39.) OFFICE HOURS,
HOLIDAYS AND VACATIONS (IF APPLICABLE) The
company, from time to time shall post the regular office hours.
We shall be officially closed on Christmas and Easter.
If personnel is using the office on those days, they shall not light the
40.) OFFICE EQUIPMENT
AND SUPPLIES The
office equipment, such as computers, copy machine, fax machine, scanner and so
forth are provided for the use of the personnel.
If they are not working correctly, this must be reported immediately to
the broker or associate broker. Reasonable
use of supplies is permitted. If
personnel is to be requiring, for example, a major quantity of some supply, this
should be discussed with the broker or associate broker.
For example, more that 500 copies of an item may be able to be produced
less expensively by an outside source.
41.) BUILDING USE The
building shall be available to the personnel during regular business hours.
The portion of the building that is available for personnel to work floor
time or store personal files shall be available off hours by key.
42.) OTHER LICENSES
OF COMPANY OR ITS PERSONNEL If
personnel carry licenses other than broker, associate broker or salesperson,
these shall not be utilized in connection with the transaction without written
permission of broker or associate broker. See
rule number 26.
43.) FEDERAL DO NOT CALL LIST COMPLIANCE All personnel have been trained in the rules of the Federal Do Not Call list and have received a copy of these rules. The company takes compliance with these rules very seriously. All personnel agree to comply completely with these rules.
43.) FEDERAL LEAD BASED PAINT COMPLIANCE All agents before writing an offer to purchase a residential property shall provide the buyer with the Lead Based Paint booklet, a copy of the lead disclosure and explain the ten day opportunity to inspect for risk. The company takes compliance with these rules very seriously. All personnel agree to comply completely with these rules.
The undersigned acknowledges that he/she has received
a copy of the Policy and Procedures Manual for the company and agrees to abide
by its terms and all amendments which may be adopted by the company from time to
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