Addendum H Miscellaneous Policies & Fees of the Market Center Revisions approved November 21, 2008
ADVERTISING KW Federal Way believes in a strong company marketing presence. Our philosophy, however, is that the individual agent with their image and phone numbers should be the primary focus & revenue source for advertising. Accordingly, we maintain a zero-based advertising budget where agents and affiliates, who are the primary beneficiaries, pay for all such advertising costs. The Agent Leadership Council reviews and recommends assessment of fair and equitable advertising expenses to all associates. Individual marketing and advertising programs are encouraged rather than generic company advertising.
AUTO INSURANCE Each sales associate must provide the company with evidence that He/she has secured and continues to maintain the appropriate endorsement on his/her automobile insurance policy in the minimum amount of $300,000 / $100,000 / $50,000, naming Puget Sound Real Estate Investors LLC dba Keller Williams Realty Federal Way” as an additional insured.
CHANGES AND/OR INCREASES IN COSTS The Agent Leadership Council of KW Federal Way reviews regularly all of the aforementioned costs and will periodically make recommendations to increase and/or decrease various items. All associates are encouraged to regularly attend Agent Leadership Council meeting to give their input.
COMMERCIAL BROKERS ASSOCIATION KW Federal Way is a member of the Commercial Brokers association. Membership in this organization is not mandatory and individual associates may join as appropriate to their business plan. Dues are assessed through the Market Center and billed accordingly to each agent. Failing to pay your dues could be grounds for dismissal.
E&O INSURANCE/LEGAL DEFENSE The firm carries E&O insurance and legal insurance for every transaction written. A portion of the cost of this insurance will be paid by the associate as follows: Agents are billed $20 monthly for an annual total of $240.00 Other E&O Details: Policy exceptions. Full Policy available in MCA office Amount of coverage per occurrence. $1,000,000.00 Amount of aggregate coverage. $ 1,000,000.00 How does it work? Submit a Claim $2500 deductible per claim Who issued the policy? Black Ink Ins urance Who is covered? Puget Sound Real Estate Investors LLC dba Keller Williams Realty Federal Way Any agent acting on its behalf. What is covered? Wrongful Acts Who is the Underwriter? Gemini
FAX MACHINE The FAX machine is available for all associates. At this time Long Distance charges do not apply. This is subject to change at any time.
FILE REQUIREMENTS Listings and Sales files belong to the Market Center and are required by the Department of Licensing to be maintained for 3 years. These folders do not belong to the associates. However, associates may maintain duplicate files. In the event of legal proceedings, associates are cautioned that even these personal files are subject to subpoena. No documentation should be removed from the files. Files should not be removed from the office except for unusual situations as approved by the Designated Broker. Market Center files will be maintained by the Market Center Administrator and to some degree the DFI. Each associate is responsible for insuring that each listing and/or sale folder is complete, accurate, and turned in within 48 business hours of mutual acceptance on a purchase and sale and 48 business hours of a signed listing or buyer contract or 48 business hours of a Status Change Report being signed. (Mutual acceptance is
when the buyer and seller have agreed to terms, not when all conditions have been met. Do not wait until lender approval is given on a short sale.) Failure to do so will result in fines of $10 per day until turned in. In the event a transaction closes and the file does not meet Department of Licensing, NWMLS, or Keller Williams Federal Way Brokerage requirements, the Agent acknowledges that commission disbursement will be withheld until the file is complete per the Reviewing and/or Designated Broker. For a file to be complete, it must contain the following items:
LISTING FOLDERS: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10)
Completed Listing Checklist Signed Listing Agreement Signed Listing Input Agreement Addendum Signed Lead Base Paint Disclosure Signed Property Disclosure Statement (within five (5) calendar days of signed listing) Signed Home Warranty Selection/Non-selection MLS agent Detail Printout Signed Agency Disclosure Signed Legal Description – must be last recorded Deed (Realist printout not acceptable)
Copy of Power of Attorney or Superior Court declaration for Executor/Executrix or corporation declaration (if applicable) 11) Copy of MLS printouts showing any changes generated by a status change or by form 19
SALES FOLDERS: 1) Completed Transaction Checklist 2) Completed Green Sheet 3) Signed Purchase and Sales Agreement and all Addenda 4) Signed Lead Base Paint Disclosure (if appropriate) 5) Signed Seller Property Disclosure Statement (within seven (7) business days of
mutual acceptance) 6) 7) 8) 9) 10) 11) 12)
Signed Home Warranty Selection/Non-selection Signed Buyer Agency Agreement as appropriate Signed Counter Offers Signed Copy of Legal Description Copy of Earnest Money Check and Form 89 Escrow Receipt
if form 35 is part of the transaction, form 35R must be turned in within 5 days of satisfaction of the inspection 13) For condos: Resale Certificate or Public Offering Statement receipted by buyerCopy of MLS print-out (showing pending status if our listing) 14) copy of MLS printout (showing pending status if KW FW listing
BUYER-BROKER AGREEMENTS: 1) Copy of Buyer Broker Contract 2) Copy of Receipt of Law of Agency
CLOSED SALES FOLDERS: 1) All of the above as applicable 2) MLS Print out showing Status Change 3) HUD Statement
INTERNET CONSORTIUM FEE Keller Williams Realty International assesses each licensed agent, associate, buyer’s assistant, and listing assistant a monthly fee (currently $10.00). This is not subject to marital cap.
KEYS All associates will be provided with one card key to the building and our Keller Williams Federal Way office. If your key is lost there is a $10.00 fee per key. The keys are issued to all associates by the MCA.
L & I INSURANCE This is a state mandated charge that is assessed to each associate on a monthly basis unless the associate joins a team. In that case, the team is responsible for reporting/payment to the Department of Labor & Industries (L & I). The amount is currently $8.00 per month for 2008.
MAIL The Market Center Administrator and Director of First Impression are responsible for all incoming and outgoing mail. Mail will be distributed according to the name on the envelope. All mail that does NOT contain an individual’s name will be delivered to the MCA. UNDER NO CIRCUMSTANCE WILL MAIL BE OPENED BY ANYONE OTHER THAN THE PERSON TO WHOM IT WAS ADDRESSED. Associates shall insure that their name appears in the return address of all outgoing mail except in those situations when the envelope contains no return address for marketing purposes. Returned mail that contains no return address or associate name MUST be opened to determine for whom the mail is intended. Outgoing mail shall be given to the DFI who will insure that the mail is properly distributed.
MISC MARKET CENTER FEES Technology Fee $30.00 per Month Consortium Fee $10.00 per Month Labor and Industries Insurance as billed (currently $8 per month) Quarterly 480 hours X the current rate. Legal Fees/E&O ($240 annually) $20.00 per month New Agent Fee $25.00 upon joining Annual Agent Renewal Fee $25.00 due in January Color Copies 29 cents each Black Copies 300 free per month 6 cents each over 300 Postage by usage Transaction Fee of $50 per transaction (after an agent caps) Personal Real Estate Transaction Fee $500 per side (2x yr max) Some Training classes Supplies as needed
MONTHLY STATEMENTS Each associate will receive an itemized statement of expenses on or around the 10th of each month. Payment is due by the 20th of each month. An agent may pay with a check or cash prior to the 20th. KWFW requires every agent to have a th valid credit card number on file and will automatically process your card for payment on the 20 if you have an outstanding balance. IMPORTANT UNDERSTANDING: The Market Center pays bills on receipt that associates generate. Monthly expenses are a part of an agents business and KWFW cannot act as a banker for associates who do not pay their statement in a timely manner. The success of our Market Center relies heavily upon the accurate maintenance of financial records and the prompt payment of associate’s statements. If a monthly statement is not paid by the 20th, or the credit card on file is declined, you will receive an email and a call from the mca. You must contact the mca to make arrangements to pay the statement. (i.e. If you have a pending sale, your statement balance can be paid off in full if the closing is taking place within the next 60 days with Team Leader approval). If you do not respond to the attempts made to contact you in regards to your outstanding statement, KWFW will notify you via registered mail that your license is being returned to the State. In the spirit of WI4C2TS, having an outstanding balance is NOT an option.
NWMLS Keller William Federal Way is a member if the Northwest Multiple Listing Service and requires all of our associates to belong and pay their dues on time directly to the NWMLS pursuant to their policies. Failing to pay your dues puts the liability on Keller Williams Realty and will be grounds for dismissal.
OFFICE HOURS Office hours are from 8am-5pm Monday through Friday We will be closed on the following holidays: New Years Day th 4 of July Labor Day Thanksgiving Day after Thanksgiving Christmas Eve (Open 8:30 to 12:00) Christmas Day New Year’s Eve On weekends and holidays it will be the responsibility of each associate who may want to use the office. The last person to leave is responsible for insuring that the office is properly secured. Specifically: a. Turn on/off lights b. Lock Doors c. Turn off coffee pot We suggest you contact your Market Center at least weekly. Always check in when you enter the MC and check out when you leave. When you are out of the office you should check in with the Market Center at least once each week, the only exception being if you are out-of-town and have another associate who will be covering your business for you.
OFFICE SPACES Individual office spaces are the responsibility of each associate. Once assigned, each associate shall endeavor to maintain a neat, orderly and professional appearing office. The Team Leader will make office assignments based on the published Office Assignment Policy at the time. Associates may elect to change office statue (e.g. private, shared and general work-at-home) based on availability of spaces.
PERSONAL ITEMS The Market Center insurance policy does not cover items individually owned such as personal computers, printers, PDA’s, etc. Associates are encouraged to make sure their personal items are covered under their homeowner’s policy or to obtain separate insurance. Check with your insurance carrier.
PERSONAL REAL ESTATE TRANSACTIONS Purchasing or selling real estate (your personal residence and/or investment properties) is one of the greatest advantages you have as a real estate professional, and it is our goal to preserve this advantage. • • • • • • • • • • • •
The associate is not required to pay the company a real estate commission on the portion of the transaction that involves the associate as an owner. This provision applies to those properties that are considered personal residences and is limited to two sides per year, one as a buyer and one as a seller. Fractional interest in real estate involving unrelated third parties is not eligible for this benefit. The second personal transaction can only be completed after the associate has completed at least one nonpersonal transaction, where company dollar and royalty are paid as usual. The associate is not required to pay royalty on personal transactions. The associate is required to pay the company a real estate commission on the side of the transaction that involves another associate. It is company policy to charge a minimal transaction fee of $500.00. The associate must pay the E&O insurance if the E&O carrier does not insure agent personal transactions. The Market Center must have a copy of the contract on the date it becomes effective as the Market Center is legally liable. Associates must disclose being a licensed Real Estate Agent on the purchase and sale agreement. All expenses involved in the marketing of an associate’s real estate shall be at the associate’s expense. Certain state laws and restrictions may apply to investment properties and/or personal residences.
PRODUCTIVITY COACHING Keller Williams Realty Federal Way is committed to our agents’ success. It is the intention of the market center to assist every agent in creating a successful real estate career. It is the standard of the Federal Way Market Center that all “new” agents enter into the Productivity Coaching program. A “new” agent is defined as any agent that has been in the business less than three months and/or has not produced a real estate transaction in the last 12 months. New agents are required to enter the program for a minimum period of 6 months. The investment towards your success is $50.00 per month and 20% gross commission paid to the Coach on the first three transactions submitted to the office within the first 12 month period unless otherwise specified in the coach’s contract. Upon joining Keller Williams Federal Way all agents are encouraged to meet with the productivity coach. New agents recruited by and for a growing team as a buyer’s agent and/or seller’s agent may be exempt from the coaching program at the discretion of the Team Leader.
PROPERTY CALLS Property calls will be routed to the appropriate listing associate. In the event the listing associate is not physically in the office the call will be forwarded to your cell phone. A potential customer, without an agent, that calls for information on a property will be directed to the Team Leader. UNDER NO CIRCUMSTANCE MAY PROPERTY INFORMATION INCLUDING THE STATUS OF THE PROPERTY, BE GIVEN OUT BY ANYONE OTHER THAN A LICENSED REAL ESTATE ASSOCIATE
REALTOR ASSOCIATIONS
KW Federal Way has membership in the Seattle King County Association of Realtors (SKCAR), the Washington Association of Realtors (WAR), and the National Association of Realtors (NAR) and our KWI Franchise requires that all of our licensed associates belong and pay their dues on time, directly to the association pursuant to their policies. Failing to pay your dues could be grounds for dismissal.
SIGNS KW Federal Way has a limited amount of generic signs that agents are allowed to borrow for Open Houses. These are held on a first come - first reserved basis. If the sign is damaged or stolen you are responsible for the replacement cost and will be billed on your next statement. Signs must be returned in a reasonable amount of time for use by other Agents.
SMOKING The Market Center is a “smoke free� environment. Thank you for not smoking within the building.
REVISED 11.21.08 ALC APPROVAL ON 11.21.08 Changes Effective January 2009