Welcome to New Member Orientation4 Today’s Orientation • CAR/NAR Benefits • SRAR...
Transcript of Welcome to New Member Orientation4 Today’s Orientation • CAR/NAR Benefits • SRAR...
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Welcome toNew Member Orientation
Welcome toNew Member Orientation
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AntiAnti--TrustTrustVideoVideo
New Member OrientationNew Member Orientation
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Joey LewisJoey LewisDirector, Member & Director, Member &
Community RelationsCommunity Relations
New Member OrientationNew Member Orientation
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Today’s OrientationToday’s Orientation•• CAR/NAR BenefitsCAR/NAR Benefits•• SRAR Services/BenefitsSRAR Services/Benefits•• Governmental Affairs/Current TopicsGovernmental Affairs/Current Topics
–– Political Survival FundsPolitical Survival Funds•• Committees, Events & EducationCommittees, Events & Education•• SRAR.comSRAR.com•• CRIS DepartmentCRIS Department•• Technology Tools & TrainingTechnology Tools & Training•• MLS & MembershipMLS & Membership•• BreakBreak•• Pro StandardsPro Standards•• AntiAnti--Trust VideoTrust Video•• The REALTORThe REALTOR®® Code of EthicsCode of Ethics•• Fair Housing VideoFair Housing Video
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• Cell phone/Devices turned off/silent• 3/10• Return from break on-time• Use rear exit• Participation• Stay until THE END
– Must also sign out
Rules for the DayRules for the Day
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CAR/NAR BenefitsCAR/NAR Benefits• *NEW*- 12 FREE Hours
Online CE Credits• Legal Help Line
213-739-8282• Liability Coverage• Medical Health Plan• Accidental Death &
Dismemberment
• Errors & Omissions Insurance
• Legal Expense Reimbursement
• Worker Comp.• Home Warranty Plans• Automotive Insurance• Lowes Discount• UPS Shipping Discounts
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CAR/NAR Benefits (cont’d)CAR/NAR Benefits (cont’d)
•• REALTORSREALTORS®® Federal Credit UnionFederal Credit Union•• REALTORREALTOR®® MagazineMagazine•• Education ClassesEducation Classes•• Hot Topic SeminarsHot Topic Seminars•• CAR ExpoCAR Expo•• Forms LibraryForms Library•• Marketing and Networking MeetingsMarketing and Networking Meetings•• RealtorRealtor®® Commercial/ InvestmentCommercial/ Investment
GroupGroup
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SRAR ServicesSRAR Services& Benefits& Benefits
New Member OrientationNew Member Orientation
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SRAR ServicesSRAR Services• REALTOR® Report• Multiple Listing Service
(MLS)• MLS Websites• Pro Standards•• Risk ManagementRisk Management•• Tech SupportTech Support•• Education/Resource Education/Resource CtrCtr• Government/Community
Involvement
•• TransUnionTransUnion SmartMoveSmartMove•• *Point2 Agent*Point2 Agent•• *RealtyTech (1*RealtyTech (1stst year)year)
– Free Basic Website– Free Basic IDX– Free Basic Mobile IDX
• *HomePath Short Sale Assistance Desk
• *Listings on Facebook• *AnnounceMyListings &
AnnounceMyNews
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HomePath Short Sale Assistance Desk
HomePath Short Sale Assistance Desk
•• Assists in handling postAssists in handling post--offer short sale issuesoffer short sale issues•• Servicer responsivenessServicer responsiveness•• The existence of a second lienThe existence of a second lien•• Issues involving mortgage insuranceIssues involving mortgage insurance
•• Collects and submits information to Fannie MaeCollects and submits information to Fannie Mae•• CRISNetCRISNet MLS provides Fannie Mae with data to help MLS provides Fannie Mae with data to help
improve valuations and make quicker decisions improve valuations and make quicker decisions regarding short sale requests.regarding short sale requests.
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Members Only LoginMembers Only Login
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Members Only LoginMembers Only Login
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Members Only PageMembers Only Page
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Member BenefitsMember Benefits
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Member BenefitsMember Benefits
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Point2 AgentPoint2 Agent
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RealtyTechRealtyTech
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RealtyTechRealtyTech
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12 FREE Hours Online CE Credits
12 FREE Hours Online CE Credits
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Other Online Educational Resources
Other Online Educational Resources
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CAR Business Products (Discounted for SRAR Members)
CAR Business Products (Discounted for SRAR Members)
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Real Estate StoreReal Estate Store
• Forms• Books• Signs• Calendars• Supplies
• Pins• Bags• Banners• Planners
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Print ShopPrint Shop• Graphic Design• Letterheads• Envelopes• Business Cards• Postcards• Mailers• Compliment
cards• Brochures• Programs• Books• Forms
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Governmental Affairs/Governmental Affairs/REALTORREALTOR®® Action FundAction Fund
Protecting Your BusinessProtecting Your Business
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Governmental AffairsGovernmental Affairs
Representing your views at local, Representing your views at local, state and National levels to state and National levels to promote legislation and attitudes promote legislation and attitudes to protect and promote your to protect and promote your ability to do business.ability to do business.
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We lobby to prevent:We lobby to prevent:• Point of Sale Retrofits• Credit Scoring• Signage Issues• Property Rights• Local issues that impact Real Estate
and the community• Loss of Mortgage Interest deduction• Work with other community agencies
We work at Local, State and National levels to promote your business.
Governmental AffairsGovernmental Affairs
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REALTOR® Action FundREALTOR® Action Fund
•• Please consider contributing to Please consider contributing to REALTORREALTOR®® Action FundAction Fund– Starting at $49– Anytime or with Membership Dues
• Really SAVES you as a professional!
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LCRCLCRC• Candidate
funding and events
IMPACIMPAC• To support or
oppose issues that affect real estate
Where do funds go?Where do funds go?
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RAF Online ContributionsRAF Online
Contributions
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CRIS-Net Matrix LoginCRIS-Net Matrix Login
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CRIS-Net Tech SupportCRIS-Net Tech Support
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News & SRAR TVNews & SRAR TV
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REALTOR® Report OnlineREALTOR® Report Online
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REALTOR® Report OnlineREALTOR® Report Online
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Upcoming Events/Classes
Upcoming Events/Classes
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Events/Education CalendarEvents/Education Calendar
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Tech Course CalendarTech Course Calendar
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Membership & MLS FormsMembership & MLS Forms
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Membership ResourcesMembership Resources
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San Fernando Valley 818.947-2202Santa Clarita Valley 661.295-7117
Weekdays: 8am to 6pmWeekdays: 8am to 6pmSaturdays: 8am to 5pmSaturdays: 8am to 5pm
CRIS-Net Technical SupportCRIS-Net Technical Support
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Facebook.com/SouthlandRegionalFacebook.com/SouthlandRegional
Social MediaSocial Media
Twitter.com/SouthlandAORTwitter.com/SouthlandAOR
YouTube.com/SouthlandRegionalYouTube.com/SouthlandRegional
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Technology ToolsTechnology Tools& Training& TrainingJoy GoldenJoy Golden
New Member OrientationNew Member Orientation
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“The JK Team” EducatorsJoy & Kit
“The JK Team” EducatorsJoy & Kit
Joy Golden * Kit Young
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•• [email protected]@SRAR.com•• CRMLSMobile.comCRMLSMobile.com•• REALIST Tax DataREALIST Tax Data•• RPRRPR-- REALTORSREALTORS®® Property ResourceProperty Resource•• ZipFormZipForm 66•• CARETS Commercial DatabaseCARETS Commercial Database•• and moreand more
Agent ToolsAgent Tools
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•* HANDS-ON CLASSES
* LECTURE CLASSES
Class Calendar Available Online at: www.srar.com
Education Class TypesEducation Class Types
* WORKSHOP CLASSSES
* WEBINARS
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CRIS-Net Regional MLSCRIS-Net Regional MLS
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Education Classes
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Class Calendar – TableClass Calendar – Table
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MLSMLS& Membership& Membership
Iris JimenezIris Jimenez
New Member OrientationNew Member Orientation
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San Fernando ValleyMain Office
Santa Clarita Valley Division
Two LocationsTwo Locations
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When are Dues Due?When are Dues Due?
• Mailed Out Mailed Out -- end of Novemberend of November•• Due January 1Due January 1stst
––Late after January 31Late after January 31stst
•• Save $30.00 if paid before January Save $30.00 if paid before January 3131stst
•• After February 20After February 20thth, Re, Re--instatementinstatement••REALTORREALTOR®® Action Fund Action Fund -- $49$49
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MLS AccessMLS Access
• $34.50 Monthly which may be paid in full in May or split between May and November plus a small service fee.
• Licensees in office have access to MLS through the broker participation payment of $600 (a one-time fee)
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Severance & Re-affiliationForms
Severance & Re-affiliationForms
• Realtor must file a severance form with SRAR when returning a licensee their license
• Must file a re-affiliation form when accepting a licensee from another office
• Submit completed form within 7 working days
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If Agent is SeveredIf Agent is Severed
Agent cannot purchase MLS or Agent cannot purchase MLS or submit listings even though dues are submit listings even though dues are paid.paid.
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CRISNet MLS
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How to Submit a ListingHow to Submit a Listing
• Drop Off, Mail, or Fax completed listing forms to MLS service counter.
• Learn how to Input and Manage your listings by taking an Add/Edit and Web Searches class
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Types of ListingsTypes of ListingsMandatory Non-Mandatory• Time Restriction
of within 48 hours.• Residential
• Single-family• Townhouse
• 1-4 units• Mobile Homes• Land
• No time restriction• Residential Rental• Business
Opportunity• Commercial• Residential Income
• (5+ units)
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Exclude Listing Exclude Listing from MLSfrom MLS
First and last page of First and last page of Listing contract Listing contract required.required.
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LISTINGS BY NON MLS MEMBERS
• An Assistant cannot be a Co-Listing Agent. Once an Assistant starts listing properties, they mustbecome an MLS member and be licensed by the DRE.
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Reporting Sales and Other information to the MLS
Reporting of Sales
- Listings with accepted offers must be reported or input into MLS by Listing Broker as “Pending” or “Back-up” within Two Business days of acceptance.
-If you have a Short Pay listing with multiple offers, put it into Back-Up, Bank approval or not
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Tract Code ViolationTract Code Violation
•• Listings in the Listings in the Santa Clarita ValleySanta Clarita ValleyRequireRequire tract codes tract codes
• However, Tract codes are NOTrequired for:
• San Fernando Valley • Burbank
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“Public Remarks” Violation“Public Remarks” Violation
• Only used for the purpose of marketing the property to the general public.
• No disparaging other real estate agents or conveying informationabout other offices.
• May not include company name, agent name, occupant name, or phone number.
• No commission, bonus, or other compensation, nor SSS or selling office to pay MLS fees.
• May not include gate codes, alarm codes, occupancy information, or other sensitive information.
Tier One Violation
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• “Seller to select services”, “SSS”
• “Selling office to pay MLS fees”
“Agent Confidential Remarks”Violation“Agent Confidential Remarks”Violation
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Compensation Offered through MLSCompensation Offered through MLS
• Selling Office Commission cannot be varied:– if sold by a certain date– if escrow closed by a certain time– if a certain party shows the listing for
the first time.
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Sold Before ProcessingSold Before Processing
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MLS MLS CancellationCancellation
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Hold do not Show Hold do not Show & &
WithdrawnWithdrawn
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Submit Photos by Email at No CostSubmit Photos by Email at No Cost
Send to: [email protected](Limit 34 photos)• Agent Name & number
• Firm Name & number
• MLS number
• Address of property
• No agent/firm branding.
• No advertising on photos.
• Name pictures with MLS number of the property– If you send more than one photo add .000,1,2,3,4
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CARETS Rules ChangesCARETS Rules ChangesEffective July 16, 2012Effective July 16, 2012
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7.27 REO Disclosure7.27 REO Disclosure. Listing Agents submitting . Listing Agents submitting REO listings to the service shall disclose REO REO listings to the service shall disclose REO
status upon submission of the listing to the MLS.status upon submission of the listing to the MLS.9.9 Presence of Participant or Subscriber. 9.9 Presence of Participant or Subscriber.
The Listing Agent must be present on the The Listing Agent must be present on the property at all times when providing access to a property at all times when providing access to a listed property unless the Seller has consented listed property unless the Seller has consented
otherwise.otherwise.13.9 Removal.13.9 Removal. The lockbox must be removed The lockbox must be removed
within one day after the close of escrow or within one day after the close of escrow or expiration/cancellation of the listing.expiration/cancellation of the listing.
JULY 16TH CHANGES TO JULY 16TH CHANGES TO CARETS MLS RULESCARETS MLS RULES
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13.6 13.6 If a lockbox is present on a Residential, If a lockbox is present on a Residential, Mobile Home or Residential Income (1 Mobile Home or Residential Income (1 –– 4 Units4 Unitsproperty which is located in the state of Californiproperty which is located in the state of Californiand is listed for sale or lease in the CARETS and is listed for sale or lease in the CARETS system, the lockbox must be a lockbox that is system, the lockbox must be a lockbox that is approved by CARETS. approved by CARETS. Only lockboxes that provide for reasonable and Only lockboxes that provide for reasonable and timely access will be approved by CARETS and timely access will be approved by CARETS and approval must be obtained before placing the approval must be obtained before placing the lockbox/device on a property. Lists of approved lockbox/device on a property. Lists of approved devices will be published by CARETS.devices will be published by CARETS.
** 4 hour response obligation in effect every day from 8am to 6pm **
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(C.A.R. Form KLA)
KEYSAFE/LOCKBOX ADDENDUM.
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Disciplinary TiersDisciplinary Tiers
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Tier OneTier One
First Violation: First Violation: Warning LetterWarning Letter
Second Violation: Second Violation: Attend Class in Lieu Attend Class in Lieu of Fine (if such class offered by of Fine (if such class offered by AOR/MLS) or $100AOR/MLS) or $100
Third and Subsequent Violations: Third and Subsequent Violations: $300$300
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Examples of Tier 1 Violation
Details on listing – incorrect or incomplete information on listing loaded into Matrix
Reporting of Sales – incorrect status such as not reporting “Pending” or “Back-Up”
Photos on the MLS – no photo or no photo of the structure
Misuse of Remarks – including names, phone numbers, URL’s in Public Remarks.
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Tier TwoTier Two
First Violation: First Violation: Warning LetterWarning Letter
Second Violation: Second Violation: $250$250
Third and Subsequent Violations: Third and Subsequent Violations: $500$500
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Exempted Listings – not submitting an “Exclude of Multiple” form signed by the Seller. A copy of signature page of the listing agreement will also be required.Availability to Show or InspectFalse or Misleading Advertising and Representations: True picture standard of conduct.
Examples of Tier 2 Violations
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First Violation: First Violation: $1,000$1,000
Second and Subsequent Violations: Second and Subsequent Violations: $2,500$2,500
Tier ThreeTier Three
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Examples of Tier 3 Violations
Confidentiality of MLS InformationUse of MLS InformationClerical Users
All relate to sharing of passwords.
Key Use and Service – sharing key with other agents or clients.
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SUPRA ELECTRONIC KEYS
Some Agents are loaning their keys to other Agents, who don’t have a key, or Members of the public, This is in direct violation of the contract that you have signed with Supra and our MLS rules.
Implementation of a new rule will bring forth an immediate assessment to be the maximum allowed under the current violation structure which is $1000 with no warnings to the violating members.
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WHO IS COVERED BY THE RULES?
Participants and Subscribers
• Brokers• Agents working for Brokers• Appraisers• Clerical Users• Registered Assistants - Licensed and
unlicensed.
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How to Avoid Assessments
Be sure the Association has your correct email addressRespond to emails from the AssociationFix it!! On both Tier 1 and Tier 2 you get one warning. Only on Tier 3 is there no warningIf you have a question or don’t think it should be a violation – Call. There is always a phone number available.
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BreakBreak10 Minutes.10 Minutes.
New Member OrientationNew Member Orientation
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Committees, EventsCommittees, Events& Education& Education
Joey LewisJoey Lewis
New Member OrientationNew Member Orientation
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Committees - Get InvolvedCommittees - Get Involved
•• Equal Opportunity/Cultural Diversity & HousingEqual Opportunity/Cultural Diversity & Housing•• EducationEducation•• Events & Community RelationsEvents & Community Relations•• Young Real Estate Pros (YREP)Young Real Estate Pros (YREP)•• Governmental AffairsGovernmental Affairs•• Bylaws CommitteeBylaws Committee•• FinanceFinance•• Board of DirectorsBoard of Directors•• Executive CommitteeExecutive Committee•• CAR DirectorsCAR Directors•• NAR DirectorsNAR Directors
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Committees Descriptions & Application
Committees Descriptions & Application
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Mixers and Events Throughout the Year
Mixers and Events Throughout the Year
•• SRAR RealtorSRAR Realtor®® ExpoExpo•• Multicultural MixerMulticultural Mixer
–– Entertainment & cuisine from all over the worldEntertainment & cuisine from all over the world•• Political ReceptionPolitical Reception
–– Meet your elected officialsMeet your elected officials•• Golf Tournament & DinnerGolf Tournament & Dinner•• YREP BiYREP Bi--Monthly MixersMonthly Mixers•• Fundraising EventsFundraising Events•• Holiday Party/Toy DriveHoliday Party/Toy Drive
–– For less fortunate childrenFor less fortunate children
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Calendar of EventsCalendar of Events
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Professional StandardsProfessional StandardsAdministratorAdministrator
Michelle GerhardMichelle Gerhard
New Member OrientationNew Member Orientation
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Member ResponsibilitiesMember Responsibilities
Privileges of MembershipPrivileges of Membership•• MLS AccessMLS Access•• ClassesClasses•• Discounts on Services, etc.Discounts on Services, etc.
Duties of MembershipDuties of Membership•• Membership Rules, MLS Rules, BylawsMembership Rules, MLS Rules, Bylaws•• Rule TRule T
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Professional Standards Resources Available Online
Professional Standards Resources Available Online
•• Code of EthicsCode of Ethics•• Procuring Cause GuidelinesProcuring Cause Guidelines•• Advertising GuidelinesAdvertising Guidelines•• Short Pay GuidelinesShort Pay Guidelines•• Pathways to ProfessionalismPathways to Professionalism•• Professional Standards RulesProfessional Standards Rules
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Public MediationPublic MediationFILING A MEDIATION REQUEST:FILING A MEDIATION REQUEST:•• $50$50
–– NonNon--refundable administrative fee each partyrefundable administrative fee each party
MEDIATORS ARE PAID DIRECTLY:MEDIATORS ARE PAID DIRECTLY:•• $400$400
–– Per party for first 3 hoursPer party for first 3 hours•• $150$150
–– Per hour per side after first 3 hoursPer hour per side after first 3 hours•• $100$100
–– Refunded to each side if dispute resolved within Refunded to each side if dispute resolved within 2 hours or less2 hours or less
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Professional StandardsProfessional Standards
FILING A COMPLAINTFILING A COMPLAINT•• EthicalEthical
–– no feeno fee–– 180 days Statute of limitations180 days Statute of limitations
•• ArbitrationArbitration–– $250 filing fee$250 filing fee–– Mediation Mediation –– Additional $250 if not settledAdditional $250 if not settled–– 6 month statute of limitations6 month statute of limitations
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Ombudsman ServicesOmbudsman Services
•• Resolve DisputesResolve Disputes•• Informal ProcessInformal Process•• Free ServiceFree Service•• ConfidentialConfidential•• Contacted within 48 hoursContacted within 48 hours•• Communication and Communication and
conciliation NOT adjudicationconciliation NOT adjudication
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The REALTOR®Code of Ethics
New Member Orientation Program
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History and Background of theCode of Ethics
National Association of REALTORS formed in 1908.
No license laws at the time.
Real estate industry had a history of speculation, exploitation, and disorder.
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History and Background of theCode of Ethics
Code was adopted in 1913 to establish a professional standard of conduct.
Code of Ethics formed the basis for license laws.
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History and Background of theCode of Ethics
From its inception, the Code of Ethics required arbitration of monetary disputes between REALTORS.
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Under all is the land …
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The Preamble
The Golden Rule
Widely allocated ownership” and “widest distribution of land ownership”
Maintain and improve the standards of their calling.
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The Preamble
Share with fellow REALTORS a common responsibility for the integrity and honor of the real estate profession.
Strive to become and remain informed on issues affecting real estate.
Willingly share the fruit of your experience and study with others.
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The Preamble Identify and take steps to eliminate practices
which may damage the public or which might discredit or bring dishonor to the real estate profession.
Urge exclusive representation of clients. Do not attempt to gain any unfair advantage
over competitors. Refrain from making unsolicited comments
about other practitioners.
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The Preamble
If an opinion is sought about a competitor (or the REALTOR believes comment is necessary), the opinion should be offered in an objective, professional manner.
The term REALTOR stands for competency, fairness, high integrity, moral conduct in business relations.
No inducement of profit and no instruction from clients can justify departure from these ideals.
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The Three Major Sections
Duties to Clients and Customers
Duties to the Public Duties to REALTORS®
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The Structure of the Code of Ethics
Articles– Broad statements of ethical principles.
Standards of Practice– Support, interpret, and amplify the Articles
under which they are stated.
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The Structure of the Code of Ethics
Case Interpretations– Specific fact situations to which the
Articles and/or Standards of Practice are applied.
Only Articles of the Code can be violated, though Standards of Practice can be cited in support of an alleged violation.
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Ethics or Arbitration
Ethics: Basic Issue– Is there a possible violation of the Code
of Ethics? Arbitration: Basic Issue
– Is there an arbitrable issue, that is, a money dispute?
– Typically a dispute over which REALTOR is entitled to the cooperative commission in a transaction.
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The Ethics Enforcement Process
Who can file a complaint?
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The Grievance Committee A screening committee comprised of
members of the Association appointed to the committee.
Key question for the Grievance Committee: If the allegations in the complaint were If the allegations in the complaint were taken as true on their face, is it possible taken as true on their face, is it possible that a violation of the Code of Ethics that a violation of the Code of Ethics occurred?occurred?
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Professional Standards Hearing Panel
Function is to conduct a full “due process”hearing with sworn testimony, witnesses and evidence.
Hearing Panel is comprised of members of the Professional Standards Committee.
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Professional Standards Hearing Panel
After conducting a hearing, the Hearing Panel decides whether there was a violation of the Code of Ethics, proven by clear, strong and convincing proof.
If the Hearing Panel finds a violation of the Code of Ethics, the Panel then determines the discipline to be imposed on the violator (respondent).
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Authorized Discipline
1. Letter of Censure
2. Education
3. Fine not to exceed $5,000
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Authorized Discipline
4. Probation for one year or less
5. Suspension from Association and/or
MLS services for not less than 30 days
nor more than one year
6. Expulsion from Association
and/or MLS services for a period
of one to three years
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Authorized Discipline
Suspensionorexpulsion mayinclude publication in REALTOR® REPORT
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Article 1 Protect and promoteProtect and promote the interests of
the client; This obligation to the client is primary; But must treat all parties honestlytreat all parties honestly,
regardless of agency or non-agency relationship.
Standard of Practice 1-2 defines terms such as “client,” “customer,”“agent,” and “broker.”
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Article 2
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Article 2 Avoid exaggeration, exaggeration,
misrepresentation and concealmentmisrepresentation and concealmentof pertinent facts about the property or the transaction;
But there is no obligation to discover latent defects, matters outside scope of license, or matters confidential under agency or non-agency relationships.
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Article 3
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Article 3 REALTORS® shall cooperate with
other brokers; Except when cooperation is not in the
client's best interest. The obligation to cooperate does not
include the obligation to share commissions, fees, or to otherwise compensate another broker.
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Article 3Standard of Practice 3Standard of Practice 3--22 REALTORS® shall, with respect to
offers of compensation to another REALTOR®, timely communicate any change of compensation for cooperative services to the other REALTOR® prior to the time such REALTOR® produces an offer to purchase/lease the property.
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Article 9
Get it in Get it in writing!!!writing!!!
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Article 9 Agreements shall be in writing whenever
possible; In clear and understandable language; Expressing the specific terms, conditions,
obligations and commitments of the parties.
A copy of each agreement shall be furnished to each party upon their signing or initialing.
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Article 9
Standard of Practice 9-1 requires that reasonable care be used to keep documents current by use of written extensions and amendments.
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Article 11
REALTORS® shall not provide service outside their area of expertise, unless first disclosed to the client.
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Article 12
Truth in advertising!!Truth in advertising!!
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Article 12
Present a ““true picturetrue picture”” in your advertising and representations to the public.
Ensure that the professional status of REALTORS is clearly identifiable in any advertising.
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Article 16 REALTORS® shall not engage in any
practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.
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Article 16Standard of Practice 16Standard of Practice 16--11 Article 16 is not intended to prohibit
aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other REALTORS® involving commission, fees, compensation or other forms of payment or expenses
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Article 16
Standard of Practice 16Standard of Practice 16--66 REALTORS® may enter into a future
exclusive relationship when clients of another REALTOR® initiated the contact.
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Article 16Standard of Practice 16Standard of Practice 16--1616 REALTORS® shall not use the terms
of an offer to attempt to modify the listing broker's offer of compensation nor make the submission of an executed offer contingent on the listing broker's agreement to modify the offer of compensation.
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Key Factors in aProcuring Cause Dispute
The key concepts of procuring cause are referenced in this definition from Black’s Law Dictionary, Fifth Edition:“The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object.”
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Key Factors in aProcuring Cause Dispute
No predetermined rule of entitlement may be established by an association.
Hearing Panels should consider the entire course of events.
Matters such as the first showing of the property, the writing of the successful offer or the existence of an agency relationship with the buyer are not, in themselves, exclusive determiners of procuring cause/entitlement.
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SRAR Procuring Cause Guidelines
Guidelines focus on “procuring cause” as the basis for resolving over who is entitled to the selling portion of the commission.
Includes Preventative Tips for Practionersand Suggested Procedures.
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The Arbitration Process
Article 17 provides that arbitration occurs under the following circumstances:– Contractual disputes or specific non-
contractual disputes(see Standard of Practice 17-4);
– Between REALTORS (principals) associated with different firms;
– Arising out of their relationship as REALTORS
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The Arbitration Process
Request filed. Arbitration is conducted under
Article 17 of the Code of Ethics and the state arbitration statute (if any).
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Mediation
Mandatory process in which disputing parties meet with a mediator appointed by the Association to create a mutually acceptable resolution of the dispute, rather than having a decision imposed by an arbitration hearing panel.
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Mediation If a dispute is resolved in mediation, the
parties sign an agreement spelling out the terms of the settlement, and no arbitration hearing is held.
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Professional Standards Hearing Panel
Function is to conduct a full “due process”hearing with sworn testimony, witnesses and evidence.
Hearing Panel is comprised of members of the Professional Standards Committee.
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Professional Standards Hearing Panel
After the hearing, the Hearing Panel decides which REALTORis entitled to the award (typically a disputed commission in a transaction), proven by a preponderance of the evidence.
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Payment of the Award
Generally, the award of the Panel in an arbitration case can be judicially enforced if not paid by the non-prevailing party.
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The REALTOR Code of Ethics …
protects the buying and selling public.
promotes a competitive real estate marketplace.
enhances the integrity of the industry.
is your promise of performance. is your promise of professionalism.
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Fair HousingFair HousingVideoVideo
New Member OrientationNew Member Orientation
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Thank you!Thank you!
New Member OrientationNew Member Orientation