1. Sale Associate is an independent contractor and no employer-employee relationship is to be implied from any title, provision or language used in this handbook or any other communication with The Broker.
2. The Broker is a full-service real estate brokerage and a member of the National, State and Local Association of Realtors as well as many MLS's. As a Sales Associate you are expected to maintain membership in NAR, CAR, and your Local Board of Realtors as long as The Broker is a member and always be in good standing.
3. The Broker supplies no employee benefits or medical coverage.
4. Sales Associates are associated with The Broker "At Will Status". Except where it is otherwise expressly agreed in writing. Either party may terminate this association at any time, or on 24 hours written notice with or without cause or reason.
5. Sales Associate must maintain a valid California real estate broker or salesperson license while associated with The Broker. If your license expires, you may not engage in any activities on behalf of The Broker which would require a real estate license until it is renewed. If your license is not renewed within 30 days after it lapses, or if it is suspended or revoked by the Bureau of Real Estate, your association with The Broker will be immediately terminated. A licensed real estate salesperson cannot be employed by nor accept any compensation from any person or outside The Broker (who is holding his or her license at the time).
6. Sale Associate cannot pay compensation to any real estate licensee for performing enumerated acts, except through The Broker express written approval.
7. Sale Associate license will be held by The Broker at the main business office until it is either canceled or until the salesperson leaves The Broker contractor status.
8. Compensation: Please reference Exhibit A in The Broker ICA.
9. Sales Associate gets paid directly from escrow on either a sale or listing. Once the file has been deemed compliant and complete, The Broker will complete a Commission Disbursement Agreement (CDA) prior to the close of escrow so that the Sale Associate can pick their commission check once escrow is completed. The Broker should never process a Sales Associate's commission checks if the file is deemed noncompliant or incomplete.
10. Buyer Representation: If we represent the buyer, the law requires that you must provide the buyer with a disclosure as soon as practical before executing a Purchase Agreement. NOTE: You are obligated to provide the disclosure form to the buyer as soon as that buyer seeks your services in more than a causal transitory or preliminary matter with the object of entering into a real property transaction. As a general rule, never show a property without providing a disclosure. Don’t forget to obtain a signed Acknowledgement of receipt. When you present an offer and this office is not the listing agent, you must also provide a disclosure to the seller as soon as practicable BEFORE presenting an offer. Delivery to the listing agent is generally sufficient.
11. Commission Advancements: The Broker does not advance commissions to a Sale Associate and if a Sale Associate were to utilize an outside company for commission 11 advancements; such as E-Commission, (1) The Broker is not responsible for a Sale Associate borrowing money in advance and (2) The Broker must approve in writing prior to the close of escrow.
12. Commission Disputes: ARG CA has a simple flat fee approach and will be paid on any deal per this agreement per side once a file is deemed complete. If a Sales Associate does not complete the necessary tasks consistent with The Broker's checklist or a dispute exists relative to the commission then the commission will remain in escrow until such dispute is resolved or file is completed. You agree The Broker will incur no liability to you (Sale Associate) for keeping funds with escrow until such dispute is resolved.
13. Commercial Commission: Is determined by the following - Any deal that is more than 1-4 units is deemed to be a commercial transaction and The Broker split has been set in Exhibit A within ARG CA ICA. There is more inherent liability that we have as a result.
14. Tax Reporting: At the end of each calendar year The Broker will provide you with an IRS form 1099 miscellaneous, setting forth compensation paid to you during the calendar year. The Broker will also report accordingly and will not withhold any taxes. Your income earned and expenses incurred during the year may have significant tax consequences. You are encouraged to keep accurate records of earnings and expenses. You are also encouraged to seek tax advice regarding these matters.
15. E/O: The Broker is self-insured up to $1m per file and aggregate. The Sales Associate is covered on every deal, with a $2,500 deductible, unless fraud is committed. Deductible reductions for predetermined stipulations may be available. (Ref Policy)
16. Car Insurance: Each Sales Associate must have automobile insurance. You must maintain on file with The Broker, proof of current insurance.
17. Office Hours: Sales Associate makes his or her own work schedule. Corporate office hours will constitute a normal work day beginning at 8:00 am and closing at 5:00 pm Monday through Friday unless previously agreed too.
18. Telephone Systems: Sales Associate shall have their own phone system and means of communication with their clientele.
19. Open House and Yard Signs: It is the Sales Associate responsibility to purchase and maintain Broker approved "For Sale" or "Open House" signs. The Broker approved logo and DRE# must be on all signs as expressed in the most current version of the state rules and regulations. It is the responsibility of the Sales Associate to purchase, install and use property signs properly and in compliance with all MLS rules, local ordinances, and any association rules that may exist with the property being marketed. Signs should be installed properly, making sure they are clean and in an upright position.
20. Business Cards: The Broker approved logo must be utilized for all Sales Associate business cards. Templates can be found in our Canva marketing platform or the arghome.net website. Sales Associates are responsible for their own business cards unless agreed to in writing.
21. MLS Services: The Sales Associate must join a Board of Realtors that The Broker currently belongs to within the service area of his/her marketplace. All Sales Associates are responsible for their board expenses including but not limited to MLS dues, membership and other related miscellaneous expenses.
22. In Writing: As a general rule, all agreements must be in writing. In fact if you do not have a written agreement with the principal, you may not receive your commission. If you discuss anything with any party or other broker/agent, always confirm your discussions and understanding with a written follow up to that party or broker/agent. Always leave a copy of any signed document with the party who signed it. Never sign anything on behalf of your client, another agent or anyone else.
23. Postage and Courier Express: All postage and courier expenses are to be paid by the Sale Associate at all times.
24. Attorneys: No Sales Associate shall hire or employ the help of, engage the use of, or in any other manner, obligate The Broker to an attorney without first having written authorization from The Broker. A Sales Associate must never give legal advice, directly or indirectly. This includes advice in regard to legal rights of parties, legal aspects of notices 12 and instruments and matters affecting title to property. When a client asks a question which might border on LEGAL ADVICE it must be clear that only an attorney can give such advice.
25. Meetings: The Broker may have frequent meetings and formal trainings in the main office. Each Sale Associate is encouraged to attend these company gatherings.
26. Corporate Back Office and Website: The Broker has a corporate website and back office through Skyslope. All company documents and policies will be stored in the back office for Sale Associate reference and to remain in compliance.
27. Holidays: The Broker will observe the following legal holidays: New Year’s Day, Easter, Independence Day, Thanksgiving, Christmas Eve and Christmas Day.
28. Office Location: The Broker office is located at 3416 Via Lido, Ste E Newport Beach CA 92663. Sale Associate are encouraged to come by the office and see The Broker. Sales Associates are able to use the facilities and hold meetings in the conference rooms. If a Sales Associates wants to have his or her own office they need to do so at their own expense.
29. Education: Sales Associates are required to take educational courses necessary to maintain their licenses in good standing with the DRE. It is also encouraged for licensees to utilize the corporate trainings available to help improve their knowledge of the real estate environment and business climate.
30. Buying and Selling Personal Real Estate: The Broker allows for the Sales Associates to buy or sell their own properties or work on behalf of friends and family members. In doing so, a Sales Associate has the fiduciary responsibility to their clients that prohibits any self- serving practices, predatory tactics, and/or fair housing law violations. It is important that this fiduciary relationship be respected at all times. Sale Associates must identify and disclose where necessary themselves as licensees/realtors. Any commissions due to ARG will apply at all times in the sale or listing of a Sales Associate's own home, investment property and family or friends purchase or sale unless otherwise agreed to previously by the Broker. Proper disclosures must be adhered to and brokerage commission fee still applies even if no commission is being paid by the Sales/Broker Associate to themselves. This includes relative’s homes and investment properties. ***Remember to always disclose properly and identify yourself as a licensed agent should it be necessary***
31. Personal Records: A Sales Associate records will be kept on file in the Broker's main office. Sales Associate shall promptly notify The Broker in writing of any change in family status, email address, telephone numbers and or home address.
32. Open Houses: Sales Associates must review with the sellers the risks of hosting open houses in occupied homes. It is difficult to assure and protect the personal property on the premises when several parties attend an open house concurrently. It is recommended that two agents be present during an open house.
33. Product and Service Purchases: No Sales Associate may purchase products or services on behalf of the Broker without written authorization. Any fees or purchases on behalf of the client are a fee that is the responsibility of the Sales Associate.
34. Broker and Teams: All Sales Associates and/or Teams must have all of their team members affiliate and join the brokerage. This is done through the CA DRE E-licensing system. Per this agreement the Broker Associate must only affiliate with The Broker and unless a team agreement has been agreed to in writing each Sales Associate will be on an individual ICA Agreement.
35. Compensation Agreement: The Broker requires that a compensation agreement be in writing and signed by the party to be charged in order to be enforceable. If you represent a buyer in a “for sale by owner” and the buyer is to pay a commission, you must have a written agreement with the buyer to pay that commission such as a Buyer-Broker Agreement. If the seller is to pay the commission, you must have a written agreement as an addendum to the Purchase Agreement. All agreements must be uploaded into our paperless management system within Skyslope.
36. Disclosure Requirements: The agency disclosure law applies to sales, exchanges and leases for more than 1 year, involving real property improved with 1-4 dwelling units, stock cooperatives, and mobile homes. The law applies regardless as to whether or not the property is owner occupied. You must provide the buyer and the seller with a statutory disclosure entitled “Disclosure Regarding Real Estate Agency Relationships” (California Association of Realtors).
37. Nondisclosure: One of the most common areas of dispute relates to the seller’s and agents alleged nondisclosure of a material fact about the property. The Sales Associates and the seller’s disclosure requirements have continued to increase over the years often leading to confusion and frustration on the part of real estate licensees. The Broker takes seriously the disclosure requirements expected of the licensee. Any attempt to conceal a matter or mislead a party in any way will result in your immediate termination from this office. You are expected to be familiar with requirements and comply with them at all times.
38. Property Management: The Broker may be willing to provide property management services on a case by case basis. All arrangements to manage a client’s property must be approved in writing by The Broker. Any property management contract must be supervised by The Broker with no exceptions. Any violation of this rule will result in potential disciplinary action.
39. Skyslope: Is The Broker paperless management system for our Sales Associates. Skyslope will be used as a place for the Sales Associate to upload documents and manage client files. In order to be paid directly from escrow, the Sales Associate MUST upload their file for review to be signed off by The Broker in a timely manner per this agreement. A Commission Disbursement Agreement (CDA) instructing escrow to release the Sale Associate commission at closing.
40. Escrow and Title Compliance: Upon acceptance of the offer, arrange for an opening of escrow and/or title through a reputable company. Have your clients and the office’s instructions uploaded to Skyslope. Review all documents with offers, counter offers, and commission authorization for completeness and accuracy. Please review the policy and instructions of The Broker if you are unsure of what to do.
41. Escrow and Client EMD: It is important to note that The Broker does not utilize a trust fund for accepting and handling client funds. The Broker policy is to have the agent or buyer deposit the funds directly into escrow. Funds must be delivered to escrow according to instructions outlined in the contract and must be done within the 3 business days after acceptance. Not under ANY CIRCUMSTANCES is the agent to deposit escrow monies into a personal account on behalf of the client. This is called comingling of funds and is illegal and against real estate law and Corporate policy. Failure to follow these procedures may subject the Sales Associate to immediate termination from the company and liable for any damages occurred.
42. Escrow Instructions: You MUST adhere to all conditions and responsibilities of the purchase agreement and escrow instructions unless all parties agree in writing to the contrary.
43. Termination: Should the Sales Associate be either terminated or leave on his/her own will The Broker will release any and all inventory (including purchases) as long as no escrows are open. If escrow is open we can either close the escrow under The Broker or we can release the escrow but our flat fee will remian and need to be paid to us from escrow.
44. Mediation and Arbitration: There are significant legal consequences with mediation and arbitration. Sales Associates are NOT attorney's and should never give legal advice. If your clients have a legal question about mediation or arbitration, they should be advised to contact their attorney. This office encourages you to refer to CA Law to consult the mediation and arbitration guidelines. Mediation is a serious issue and is not the agent’s responsibility to act as an attorney nor give legal advice. All contract disputes between the agent and The Broker will be disputed through JAMS only. Salea Associates waive their rights to any other mechanism other than civil court.