GEMLS Policies

POLICIES

GOLDEN EMPIRE MULTIPLE LISTING (GEMLS)

FINANCIAL MANAGEMENT Managing the financial affairs of the Golden Empire Multiple Listing Service, Inc., requires prudent management, proving maximum protection to members’ money within established guidelines.

(6/05) Assessor’s agreement to be in two year increments, From July to June at $6,500/yr.

(9/05) Increase MLS Admission Fee for R.E. Broker to $1000 effective January 1, 2006

(9/05) Effective January 1, 2006, MLS fees to be billed in advance. On-line billing now available.

(11/05) Gary Crabtree’s MLS fees waived in return for providing Statistical Market Report (11/06) No charge for data entry of comp only listings.

(11/06) Each office shall be allocated one (1) clerical access to MLS for every 15 agents at no charge to Broker. A $25 charge for will assessed for any additional clerical access requests.

(11/06) Bill for CUA’s directly to agents (Broker’s approval required). $25 set-up fee, with $12/mo. access fee. Clerical users must register with Association.

(11/06) Offices will be turned off for nonpayment of MLS fees by broker.

(11/06) Third party vendors requesting virtual media bulk upload service will be assessed $250 annually for such services. Contract revocable at any time.

(10/06) Budget expenditure limit of $2500 not requiring Board of Directors approval.

(6/09) Pension Plan: GEMLS/ Association BOD concurred assuming responsibility for the Newport Group fees associated with the employees 401K Pension Plan, according to their established proportionate share (65% GEMLS/Assoc. 35%). Wealth Target Management fees to continue to be the responsibility of participating employees.

(1/10) Assessment of yearly MLS administrative services fee of $150 for cooperative key

processing. Renews upon MLS membership anniversary date.

(7/11) Late fee: Quarterly late/ reinstatement fees for payment of MLS fees after the required due date increased from $10 to $50.

(12/13) GEMLS and its parent, The Bakersfield Association of REALTORS® (the Association) share personnel, office space, utilities, equipment, supplies and other ordinary and necessary business expenses. GEMLS and the Association shall share common expenses on a fair and equitable basis. Costs of personnel shall be based on the time each personnel spends on GEMLS matters and Association matters. Allocations of common costs and expenses may be based on reasonable estimates and determined by and reviewed by the Strategic Planning and Finance Committee. The Association may charge GEMLS reasonable rent on the portion or percentage of the building reasonably determined to be used by GEMLS as determined by the Strategic Planning and Finance Committee.

(12/13) Annual Audit: The GEMLS will have an outside CPA firm conduct an annual audit of the corporation’s finances, which may be the same CPA conducting the parent’s, The Bakersfield Association of REALTORS’® audit.

(6/19) Policy adopted to Increase lease fees for GEMLS Occupancy, calculated at $1.18/sf for our 10,000sf building, utilizing 65% of space (previously calculated at $.77/sf) retroactively from July 1, 2018 to June 30, 2019. An increase of $32,040 ($60,000 up to $92,040).

(6/18/19) Policy adopted approving Furniture, Fixtures and Equipment (FFE) charge assessment to GEMLS in the amount of $30,000 to cover shared furniture, equipment and computers at GEMLS 65%, estimated for budget purposes with a year-end addustment to actual calculated at 65% of annual depreciation for capital assets in use (irrespective of book value) during that year. FFE charge assessment retroactive July 1, 2018 to June 30, 2019.

(6/18/19) – Directors approved designation of signors for establishment of Investment account with Morgan Stanley as follows: CEO, President Elect, Vice President and Secretary Treasurer.

ADMINISTRATION/STAFF (10/07) In order to protect the public and to expedite action when needed, the Executive officer shall determine possible security issues and suspend key privileges of agents and send notification to Broker of said suspension. Notification shall be given to GEMLS BOD at next meeting for ratification of action.

(12/13) Adoption of Record Retention and Destruction Policy.

(12/13) Software Licenses: Any software installed in the organization’s computers must have appropriate licenses.

GOVERNANCE/MLS RULES (11/05) MLS Citation Policy adopted. lockbox rule is a non-correctable offense. Penalty established for non-compliance: 1st - $250; 2nd - $500; 3rd - $1,00; 4th – 30-day loss of MLS privileges.

(5/06) GEMLS public website to include addresses of property.

(11/06) Cumulative Days on Market – If home is re-listed within 30 days, days on market will be cumulative.

(1/07) MLS Rule 7.11.1 – Marketing Remarks: Public Marketing Remarks shall be limited to a description of the property. No identifying information (including name, telephone numbers or webpage addresses) regarding the listing office or listing salesperson are to be included in this section. Applies to marketing remarks, photos and virtual media.

(2/07) Virtual Tours will be allowed, however, must be unbranded with the exception of Affiliate Members. Affiliate member cannot be affiliated with the Listing Broker.

(8/07) New Home Construction: Not allow advertising of model homes with directions to alternate property.

(10/07) MLS will accept electronic documentation from Corporation in lieu of signed-documentation for extension on active and expired listings.

(10/07) A property listing shall be automatically cancelled upon transfer of title/or upon recordation. If, after transfer or title/recordation, property is not removed by Broker, the GEMLS staff has authority to remove the property from the MLS.

(2/08) Statistical Data – C.A.R. provided authorized usage of MLS statistical data for reporting purposes.

(6/09) Repeat Violations: Citation Policy “If, within a six (6) month period, the violator is issued two NV-W for violation of the same MLS Rule, the second NV-W will result in an “automatic” Notice of Violation & Fine Assessment (assuming that the violation(s) is one that can be corrected.”

(6/09) License ID – Pursuant to Senate Bill 1461, effective 7/1/09, real estate license number to show on all client/ customer reports obtained throughout MLS.

(11/12) Conflict of Interest Policy Adopted

(1/13) Board & Leadership Guidelines (including Responsibilities, Engagement) as set forth in document presented on 1/29/2013.

(1/13) Confidentiality of Documents and Conversations as set forth in GEMLS Confidentiality Agreement.

(12/13) Antitrust Compliance: The GEMLS, Inc. has a policy that the corporation and its members fully comply with California and United States antitrust laws. This policy includes the following points: n The GEMLS will provide information to members on real estate antitrust issues on a regular basis.

n The GEMLS will occasionally publish the following information in the Bakersfield Association REALTOR® Magazine the following: policy concerning Brokerage Fees. From time to time, the GEMLS publishes its statement as a reminder to all members. It is the GEMLS’ policy to comply fully with all applicable antitrust laws of the State of California and the United States. In this regard, the following points are important to members:

1. The GEMLS does not fix, establish, suggest, maintain or recommend to its members any rate or amount of commission.

2. The GEMLS does not fix, establish, suggest, maintain or recommend to its members the division of commission on cooperative real estate transactions.

3. The GEMLS does not keep records of members’ commission and/or division of commission policies.

4. The GEMLS will accept all listings properly submitted, regardless of commission and/or division of commission.

5. Any member who provides information to the public which is contrary to this policy may be subject to disciplinary action.

Remember, each real estate brokerage firm must ultimately determine its commission charges.

(12/13) Authority Policy: It shall be the policy of this corporation that any communications on behalf of the corporation shall be official, at the direction of the president, board or staff. No statements shall be made, either verbal or written that conflict with the position or policy of the corporation. Leadership should understand, that by virtue of their position, that statements may be perceived by the public as official and on behalf of the corporation. To control official communications, stationary and business cards shall be for the use of the elected president and staff only. Members of the board and committees may not use the corporation’s stationary. Staff will prepare letters sent on behalf of the organization with a copy remaining in the office. Exceptions may be made to the policy so long as the purpose of the letter is made known and approved by the board in advance.

(3/15) A unanimous vote of Directors present approved branded Virtual Media be added to the MLS for all outside syndicators.

Public Marketing remarks be added to MLS which include both Agent and Broker Name and Contact Information for Syndicator sites.

(4/19 ) Policy adopted to provide Brokers discretionary authority to manage their agents’ rights to MLS.

MLS PHOTO (6/14) A unanimous vote of Directors present approved a change to MLS Rule #12.8 to require the input of MLS photo to 48 hours.

PHOTO WATERMARK (6/14) A unanimous vote of Directors present approved use of Rapattoni enhancement option for placement of a watermark (to be researched and determined by Jamey) on GEMLS listing photos for the purpose of protecting its rights under Section 11.6 — Copyright Ownership. Use of free

Rapattoni solution to be utilized while staff explores other options. Recommendation to be brought back to the board for review.

MEMBERSHIP (6/05) Orientation shall be waived for those who do appraisals only.

(3/06) Broker access available to statistical data including the agent’s data through Rapattoni. Access can be given to DR or assigned designee of the broker.

(5/07) Non-payment of MLS Fees - Agents who do not pay their MLS fees will have their listings placed in the name of the broker. If the Broker does not pay his/her fees, with written notice to the Broker, the listings will be removed from the MLS.

(10/07) New members candidates will be published to the MLS BOD and Members for review and approval after review by Membership Committee Chair. Membership granted on a conditional status until final approval is received. Appraiser applicants handled in same manner.

(1/12) Appraisers’ Lock Box Key: Directors approved providing full access lock box keys to appraisers. If appraiser holds an active real estate license, he/ she will be required to attend the MLS Rules portion of the MLS orientation program.

(12/13) Membership Rosters/ Directories: The organization’s database of members must be carefully protected.

(10/14) Pest Control Companies: Lock Box Key. A unanimous vote of Directors present approved the issuance of a SUPRA Key for pest control company affiliates. Authorization from main Affiliate member must be received prior to issuance. Mandatory first hour of MLS Orientation required.

(12/15) Team Names at no administrative cost charged to members.

(8/16) Discussion and direction given to CEO, with Directors approval, on moving forward with online MLS Orientation.

FINANCIAL (3/15) Current fee schedule and procedure as applicable to Syndicators; n $250 Fee for Broker’s listings to go to Syndicators and require terms of use signed by Broker and Syndicator

n Broker continues to receive their own listings free of charge for their own use.

Fee Schedule for MLS Broker Initiation Fees;

n $1,000: Office Initiation Fee for New MLS Brokerage

n $500: Office Initiation Fee for Second MLS Brokerage Office operating under different name requiring separate DBA.

n $250: Office Initiation Fee to re-open a previously closed MLS Brokerage Office.

(6/15) MLS Violation fines to be allocated to the Charitable Foundation. Staff to determine what % is required to cover staff time. Recommendations to be submitted to SPFC committee for approval and submission to BAK and GEMLS Boards for final approval.

GEMLS, INC. POLICIES ADOPTED 12/2/2013