POLICY AND PROCEDURES MANUAL

NettWork Global, LLC assists its members in conducting their businesses in an ethical and professional manner. This office policy manual is one such product and is also a significant tool for its agents to manage risk in their businesses.  It is only a suggestion, and the company and author make no representations or warranties regarding the suitability of its contents for the agent’s business, nor do they assume any liability for the same. The individual agent should consult with the member’s counsel and adopt such additions, deletions, or other appropriate modifications to this sample manual as fit the needs of their business. In addition, it is assumed the agent has reviewed the regulations of the Missouri Real Estate Commission and the Code of Ethics of the National Association of REALTORS®.

MISSION STATEMENT

Our Mission at NettWork Global, LLC is to develop top-tier real estate professionals in a growth-minded environment by providing elite coaching and training resources while providing the highest level of client service.

STATEMENT OF BUSINESS PRINCIPLES

The following principles form the basis for executing the mission statement of NettWork Global, LLC.  Licensees, management and staff of the company work as a team to accomplish the mission statement and will abide by these principles.

1. PROFESSIONALISM:  Professionalism NettWork Global, LLC, means approaching the business with ethical conduct toward our customers and clients. 

2. Abiding by the REALTOR® CODE OF ETHICS forms the basis of that standard.  Secondly, constant training and education keep us informed and at the peak of awareness for customer and client.  Each licensee and employee of NettWork Global, LLC, is pledged to these ideals.

3. INTEGRITY:  Simply put, honesty in all business dealings is the best way to get and keep business over the long term.  Simple honesty also forms the basis for the best business protection we can get.  It is a simple, effective, efficient and cost-effective risk management method.

4. PROFITABILITY:  NettWork Global, LLC, is in business to make profits in the course of its ordinary activity.  Each licensee and staff member has a responsibility to the company to contribute to its profitability, whether it be in terms of direct production of revenue or careful expenditure of company funds.

This Office Policy Manual for NettWork Global, LLC, is designed to guide each licensee and staff member in the most important areas of company activity.  If a matter is not covered, bring it to the attention of the President/Owner for possible inclusion in future revisions.  If a matter is covered, the licensee or staff member is expected to act according to this Manual.  Failure to act in accord with company policy will be taken into account in future evaluations of the licensee or staff member.

NETTWORK GLOBAL, LLC welcomes each new licensee and employee to the business of professional, ethical and profitable real estate sales.

EQUAL EMPLOYMENT OPPORTUNITY POLICY

It is NETTWORK GLOBAL, LLC policy to provide equal employment opportunities without regard to race, color, religion, sex, age, national origin, handicap, ancestry, or status as a Vietnam era veteran, to all qualified employees and applicants for employment. This policy applies to all areas of employment, job assignment, training, promotion, transfer, compensation, discipline and discharge.  The company abides by all federal and state laws regarding employment practices, including, but not limited to the Americans with Disabilities Act.

POLICY AGAINST SEXUAL HARASSMENT

Any harassment of an associate, whether licensee, employee or applicant, because of race, color, sex, religion, national origin, ancestry, age, military status or handicap is clearly prohibited and will not be condoned.  Sexual harassment is one particular form of discrimination, which is illegal and violates the company's longstanding equal employment opportunity policy.  NETTWORK GLOBAL, LLC, maintains a strong policy prohibiting any form of sexual harassment.

No licensee, employee, staff member, customer or vendor, male or female, may sexually harass an employee, licensee or other person associated with the company by

1. Making unwelcome sexual advances or requests for sexual favors or other verbal or physical conduct of a sexually suggestive nature; or

2. Making submission to or rejection of such conduct the basis for employment, continued employment or any other employment decision affecting the employee; or

3. Creating an intimidating, hostile or offensive working environment by such conduct.

Any licensee or employee who has been found to have sexually harassed another licensee or employee will be subject to appropriate discipline including discharge from association or employment.

This policy applies equally to any work-related sexual harassment by or to both men and women employed by or associated with the company or who deal with the company in our business, and it is not limited to supervisor/employee or manager/licensee relations or to conduct occurring on premises or during working hours. 

Any licensee or employee who believes that he/she is being or has been sexually harassed by another licensee or employee should promptly take one or more of the following steps:

1. If appropriate, discuss the situation directly with the person whom you feel is harassing you, and politely request that the person cease harassing you because you feel you do not like or welcome his/her conduct. You might also add that if such conduct does not cease altogether, you will take further steps under this procedure. (If the person involved is a customer or client, please refer the complaint to senior management instead.) 

2. If you believe that some adverse employment consequence may result from your discussions with that person, or if the harassment continues, go to a higher level of supervision including any senior executive of the company. You may be required to state in writing the specific details of the harassing behavior including date, time, place and witnesses if any.

3.  An investigation of any complaint will be undertaken immediately. All complaints will be handled in a prompt, confidential manner insofar as the investigation permits. There will be no adverse action directed toward any complaining licensee or employee or witness as a result of making or supporting the complaint, unless there clearly was bad faith.

NETTWORK GLOBAL, LLC, has a policy of associating with its licensees as independent contractors.  Each licensee will be required to sign a standard NettWork Global Agent Agreement setting out the relationship as an independent contractor.  While the exact terms of the relationship are covered in the contract, a few reminders about being an independent contractor follow. 

Income Taxes:  All income taxes, federal and state, are the responsibility of the licensee.  The company does not withhold or pay Social Security taxes on commission earnings.  Self-employment tax must be paid by the licensee.

Unemployment Taxes:  As an independent contractor, the licensee is not covered under state or federal unemployment laws.  Independent contractor real estate licensees acting under an agreement such as the Missouri Association of REALTORS® form are exempt from the unemployment laws by Missouri statute. 

Accordingly, NETTWORK GLOBAL, LLC, does not pay unemployment taxes on the earnings of its licensees.

Worker's Compensation:  As with unemployment taxes, an independent contractor real estate licensee signing an agreement like the Missouri Association of REALTORS® form is exempt from the worker's compensation laws by Missouri statute.  Given this statute, NETTWORK GLOBAL, LLC, does not cover licensees under its worker's compensation insurance policy.  A licensee should specifically discuss an individual worker’s compensation policy with their insurance agent.  A licensee should check that all types of their insurance, particularly health and accident insurance, is adequate.  The licensee should ask their health insurance provider whether their health insurance policy covers workplace accidents.

Automobile Insurance:  Each licensee should carry adequate automobile insurance to protect not only the licensee but also the customer or client. See Addendum C of the Agent Agreement

1. Agents are reminded that each person in the front seat of an automobile is required by law to wear a seat belt

2. NETTWORK GLOBAL, LLC, advises that you should not transport customers or clients with children without an approved car seat.  To reduce risk, we strongly recommend that you insist that all occupants of your vehicle wear safety belts and that all children age 4 or younger sit in an approved car seat.  You should also note that any infant's car seat, (children approximately 1 year or younger) should not face forward, but should face the rear of the vehicle.  In cars equipped with airbags, a car seat should never be installed in the front passenger seat but always installed in the rear seat(s).  In addition, children and small adults should not sit in the front passenger seat.  Airbags are known to release with such force that injury or death is possible for children and small adults.

3. The Company strongly urges you to purchase an additional personal liability policy, commonly known as an "umbrella" policy, with limits of at least $1,000,000.  These policies are commonplace and affordable.  In consulting with your insurance agent, you may find that you can carry a lower limit on automobile coverage (such as the $100,000/$300,000 limit) and be covered by the umbrella policy for amounts over that.

EXPENSES

As an independent contractor, each licensee is expected to be in business for herself/himself.  Generally, the expenses of that business will be the responsibility of the licensee. 

NETTWORK GLOBAL, LLC, will provide the following items and/or facilitate the payment for the following expenses:

• KVCore

• Compliance Review

• E&O

The licensee will be expected to pay for all other expenses, including these particular items: 

• E-signature access (if desired)

• Continuing education

• Membership dues to realtor association

• Business Cards

• Yard Signs and other outdoor signage

• Listing marketing materials (including photos, video)

• Digital Advertising benefiting agent’s own business

• Cell Phone and cellular plan

• Printed materials (including client or pre-client communication)

• Brokerage related fees. For more information see the NettWork Global Agent Agreement.

• All other expenses to conduct successful business.

This list of expenses paid by the company or licensee may be amended by the company from time to time by appropriate publication to all licensees.

CELL PHONE AND DRIVING SAFETY POLICY 

As real estate professionals, we all work out of our cars a great deal of the time. And because instant communication with our clients, other licensees and various vendors is so critical to making sales happen, we also use phones, especially cell phones, a great deal of the time. The combination of cars and cell phones, however, can be deadly - for you, for your clients and for others. NETTWORK GLOBAL, LLC has, therefore, established the following policy for all salespersons and employees, which we hope will minimize the dangers that can result when cell phones are used while driving: 

1. When initiating calls, pull over and stop your car before dialing. 

2. When receiving calls that require more than a quick response such as "I'm running late" or "I'm on my way," tell the caller that you will call him/her back as soon as you pull over and stop your car.  Most cellphones have a means of accessing the phone number of the last caller, so you won't have to write down the caller's phone number. 

3. If you absolutely must converse on your cell phone while driving, follow these tips to increase safety: 

   1. Use a hands-free device.  Currently, this means either an earphone or speaker device. Place the phone where you can see it without diverting your eyes from the road for any longer than necessary. 

   2. Program emergency and frequently-called numbers into your phone.  

   3. Practice using your cell phone so you know how to use the hands-free devices, memorized numbers and other features without taking your eyes from the road. 

   4. If your phone has voice activation, which allows you to initiate calls to pre- programmed numbers by saying a word or two, use it. 

   5. Keep conversations as brief as possible. There is nothing wrong with telling a caller that it is not safe to talk and drive right now and that you will call him/her back as soon as you can do so safely. 

   6. Drive in slower lanes and increase the distance between your car and the one ahead so you'll have more time to react to problems that may occur. 

   7. Don't try to take or take notes regarding/during the conversation. 

   8. Don't engage in complex discussions that divert your attention from road and traffic conditions. 

   9. Don't answer the phone if it rings when you are in a traffic situation where your safety could be compromised. Most phones have voicemail and you can return calls once you are stopped and in a safe place.

A growing trend in the real estate business is for high producing licensees to use specific persons as their assistants and/or to associate with other licensees as a “team.” NETTWORK GLOBAL, LLC, encourages the appropriate use of personal assistants and teams as a tool for high earning licensees to be even more productive. Several caveats are in order from the perspective of the company. Many of the distinctions are based on whether a licensed or unlicensed assistant and/or team members are used. NETTWORK GLOBAL, LLC, policies on the use of personal assistants and/or teams are as follows. 

EMPLOYEE v. INDEPENDENT CONTRACTOR: 

Whether licensed or unlicensed, the licensee must decide whether to associate with the personal assistant or team member (hereafter "PA/TM") as an employee or independent contractor.

 If the PA/TM is a licensed real estate salesperson or broker, the license law requires that all compensation for real estate services be paid through the company, regardless of employee or independent contractor status.**Samples tasks considered Real Estate Services are listed below.

Serious issues of the right of control, method of payment and direction of the work exist if the licensee chooses to have an independent contractor PA/TM.

NETTWORK GLOBAL, LLC, strongly urges the licensee to consult with her/his tax consultant to determine the proper procedures in making this choice. If independent contractor status is chosen, all of the issues mentioned above regarding withholding, unemployment taxes, worker's compensation and automobile insurance should be clear in the arrangement between the licensee and the PA/TM.

If employee status is chosen, the licensee should be aware that all employment taxes, withholding reports, unemployment tax reports, worker's compensation insurance and reports and W2 forms are the responsibility of the licensee.

NETTWORK GLOBAL, LLC, is not a party to the arrangement between the licensee and PA/TM and will not be responsible for any employment activities of the licensee. NOTE: This status may be used only with prior consent of the company and appropriate review of the employee's activities so that payments for any real estate services can be arranged through the company, in compliance with the license law.

UNLICENSED PERSONAL ASSISTANTS/TEAM MEMBERS: 

The policy of NETTWORK GLOBAL, LLC, is that unlicensed personal assistants or team members WILL NOT UNDER ANY CIRCUMSTANCES do the real estate business as defined in the license law (Section 339.010(1)-(2) RSMo.). The licensee associating with the PA/TM is strictly responsible for maintaining this policy. If an unlicensed PA/TM does any acts, which constitute the real estate business, the licensee puts her/himself in jeopardy of disassociation. The Missouri Real Estate Commission has taken a position as to the types of things unlicensed office personnel may and may not do. Please review the section on "Functions of Unlicensed Office Personnel" to determine these items. The policy of NETTWORK GLOBAL, LLC, is that unlicensed personal assistants fall in tointo the same category as unlicensed office personnel.

The licensee is further advised that unlicensed persons may not be paid any fees or commissions for any work done which requires a real estate license

(Section 339.150 RSMo.). The company will not split commissions with an unlicensed person.

LICENSED PERSONAL ASSISTANTS/TEAM MEMBERS: 

By definition, a licensed PA/TM can do the real estate business. The license of the PA/TM must be held by NETTWORK GLOBAL, LLC, and any payments for the real estate business must come from the company. The licensed PA/TM will be in violation of the license law (Section 339.100(11) RSMo.) if any compensation for doing licensed activities is accepted from anyone except the broker with whom associated, NETTWORK GLOBAL, LLC. Please review the section of "Functions of Unlicensed Office Personnel" to determine the difference between "clerical" functions and "real estate" functions.

The easiest and cleanest way to accomplish this end is for the licensee to split commissions as they are earned with the licensed PA/TM in whatever proportion the two parties negotiate. The amount of the split between the PA/TM and the licensee should be specific and regular and should not vary per transaction. The company requires written agreements between the company and both licensees to delineate the relationship and also requires the PA/TM and licensee enter into a written agreement defining the relationship and specifying the compensation arrangement.

OFFICE HOURS 

NETTWORK GLOBAL, LLC regular office hours are 8:30 a.m. to 4:30 p.m. Monday through Friday, except holidays listed below.  

HOLIDAYS AND HOLIDAY HOURS 

NETTWORK GLOBAL, LLC corporate office closes on the following days: New Year's Day, Thanksgiving Day and Christmas Day, Memorial Day, Independence Day, July 4, Labor Day, Christmas Eve and New Year's Eve.

SMOKING POLICY

Smoking is prohibited in any office of NETTWORK GLOBAL, LLC, including private offices, conference rooms, restrooms and areas not normally accessible to the public.

POLICY ON PETS

Under no circumstances are pets allowed on the premises of NETTWORK GLOBAL, LLC. Even leashed, dogs, cats, or any other fiendly non-human are allowed.

POLICY ON CONCEALED WEAPONS 

The Company does allow concealed weapons to be carried on its premises in accordance with Missouri law. This policy applies to all persons on the premises, including employees and licensees of the Company. 

THIS SECTION OF THE CONCEALED CARRY ACT STATES: 

571.107. 1. … No driver's license or nondriver's license containing a concealed carry endorsement issued … shall authorize any person to carry concealed firearms into: …

(15) Any private property whose owner has posted the premises as being off-limits to concealed firearms by means of one or more signs displayed in a conspicuous place of a minimum size of eleven inches by fourteen inches with the writing thereon in letters of not less than one inch. The owner, business or commercial lessee, manager of a private business enterprise, or any other organization, entity, or person may prohibit persons holding a concealed carry endorsement from carrying concealed firearms on the premises and may prohibit employees, not authorized by the employer, holding a concealed carry endorsement from carrying concealed firearms on the property of the employer. If the building or the premises are open to the public, the employer of the business enterprise shall post signs on or about the premises if carrying a concealed firearm is prohibited. Possession of a firearm in a vehicle on the premises shall not be a criminal offense so long as the firearm is not removed from the vehicle or brandished while the vehicle is on the premises. An employer may prohibit employees or other persons holding a concealed carry endorsement from carrying a concealed firearm in vehicles owned by the employer; 

The policy of NETTWORK GLOBAL, LLC, regarding the functions and use of unlicensed office personnel follow the Missouri Real Estate Commission Rules and Regulations. The general policy is that unlicensed office personnel (secretaries, assistants, personal assistants, receptionists, accounting personnel, etc.) are to be used in a support role to the main real estate business function of the company. UNDER NO CIRCUMSTANCES will unlicensed office personnel be allowed to do the real estate business.

"Doing the real estate business" means doing any of the acts for which a license is required as defined in the license law (Section 339.010(1) RSMo.).

Further defining this area is Missouri Real Estate Commission Rules and Regulations Section 250-8.050. This section implicitly allows for the use of unlicensed clerical personnel to support licensed activities but strictly limits the position "to the duties normally attributed to such positions and such personnel shall not solicit or accept listings, show listed properties, negotiate real estate transactions or otherwise hold themselves out to the public as engaged in the real estate business."

In an article in the October, 1991 Missouri Real Estate Commission Newsletter, the Commission took a position as to the activities in which unlicensed office personnel and assistants can and can not engage. The list is reprinted below. While licensees and employees are reminded that this is not a rule of the Commission and thus is not binding on the Commission, it does provide guidance in interpreting these sections of the license law and rules and regulations.

A secretary or assistant CAN:

• Answer the phone and forward calls to a licensee

• Submit listings and changes to a multiple listing service

• Follow up on loan commitments after a contract has been negotiated

• Assemble documents for closing

• Secure documents (public information) from courthouse, sewer district, water district, etc.

• Have keys made for company listings

• Write ads for approval of licensee and supervising broker and place advertising (promotional information, newspaper ads, etc.)

• Record and deposit earnest money, security deposits, and advance rents

• Type contract forms for approval by licensee and supervising broker

• Monitor licenses and personnel files

• Compute commission checks

• Place signs on property

• Order items of routine repair as directed by licensee

• Prepare flyers and promotional information for approval by licensee and supervising broker

• Act as a courier service to deliver documents, pick up keys, etc.

• Place routine telephone calls on late rent payments

• Schedule appointments for licensee to show listed property.

A secretary or assistant CANNOT:

• Host open houses, kiosks, home show booths or fairs, or hand out materials

• Prepare promotional materials or ads without the review and approval of licensee and supervising broker

• Show property

• Answer any questions on listings, title, financing, closing, etc.

• Discuss or explain a contract, listing, lease, agreement, or other real estate documents with anyone outside the brokerage

• Work as a licensee/secretary in one firm and do real estate-related activities with that firm, while licensed with another firm

• Be paid on the basis of real estate activity, such as a percentage of commission, or any amount based on listings, sales, etc.

• Negotiate or agree to any commission, commission split, management fee or referral fee on behalf of a licensee"

PAYMENTS TO UNLICENSED PERSONS

NETTWORK GLOBAL, LLC, maintains a strong policy that no unlicensed person will be paid for any real estate activity requiring a license. The license law (Section 339.150 RSMo.) makes clear that an unlicensed person may not be paid for doing the real estate business. A later case, Gilbert v. Edwards, 276 S.W.2d 611 (Mo.App. 1955), makes it clear that this prohibition applies even if the person falls in to an exemption in the license law (Section 339.010(5) RSMo.). Therefore, the policy of NETTWORK GLOBAL, LLC, is that it will not split commissions or fees with any unlicensed, but exempted, persons such as attorneys at law, auctioneers, receivers, trustees in bankruptcy, personal representatives, managers of apartments buildings, officers or employees of federal agencies or state government, etc.

B

It is critically important that a licensee be aware of safety risks inherent in any business. The residential real estate business presents certain safety risks because of the time of day and week when much of the business is conducted. NETTWORK GLOBAL, LLC has the following safety policies, guidelines and suggestions: 

1. If the licensee does not know a customer, arrange a meeting at the office.

2. NEVER meet a prospect at a vacant house ALONE. ALWAYS take another person with you. DO NOT meet the prospect after dark.

3.  ALWAYS let the office or someone at your home know where you will be when showing property, especially, to prospects you are first meeting.

4. When on the showing, DO NOT go to dark areas, basements, garages, or areas without multiple exits. Allow the prospect to view those areas on his/her own and stay in an area, which allows for quick exit.

5. ALWAYS drive your own car. DO NOT let a prospect you do not know drive your car. Preferably, meet the prospect at the office, tell the office your destination and expected time of return and drive separate cars to the showing.

6. USE COMMON SENSE. If something doesn't feel right or look right, trust your instincts and remove yourself from the situation.

7. Whether to use self-defense techniques and how to handle a crisis if it occurs are personal decisions. Think about your choices in advance.

8.  View safety videotapes/DVDs and talk to your local police. The company has a videotape/DVD available on licensee safety and urges each licensee to view it regularly. In addition, the videotape/DVD is regularly shown at a sales meeting and the local police are asked to make safety presentations at a sales meeting periodically. Take advantage of these opportunities to be smart and be safe. No commission is big enough to justify personal risk!!

NETTWORK GLOBAL, LLC adopts this written policy identifying and describing the relationships in which the licensees of NETTWORK GLOBAL, LLC may engage with sellers, landlords, buyers or tenants. As used in this policy, the word "Company" means NETTWORK GLOBAL, LLC and its affiliated licensees.

Mike B. Nettemeyer is hereby appointed as the designated broker for the company in all relationships types.

SELLER/BUYER AGENCY - Disclosed Dual Agency for In-House Sales

(Transaction Brokerage with Buyers Authorized - No Subagency)

The Company acts as seller's agents (and/or landlord's agents) or as buyer's agents (and/or tenant's agents) through written listing agreements or written buyer (and/or tenant) agency agreements or other written agreements for brokerage services with sellers (and/or landlords) or buyers (and/or tenants).

In acting as seller's agents (and/or landlord's agents) or as buyer's agents (and/or tenant's agents), the Company acts as a limited agent as that term is defined by the Statutes of the State of Missouri and per the duties and obligations of a limited agent of a seller (and/or landlord) or buyer (and/or tenant) as specified by the Statutes of the State of Missouri. The Company's written agency agreements include the licensee's duties and responsibilities as a limited agent of the seller (and/or landlord) or as a limited agent of the buyer (and/or tenant).

If a represented buyer desires to purchase a company listing (in-house sale), the Company will act as a disclosed dual agent in the transaction with the consent of all parties to the transaction. Written consent of all parties to the transaction is required before the Company will act as a disclosed dual agent. The Company's listing agreements and buyer agency agreements contain permissions for the Company to act as a disclosed dual agent

If acting as a disclosed dual agent, the Company will be a limited agent for both the seller and buyer or the landlord and tenant as defined in the Statutes of the State of Missouri. The Company will have the duties and obligations of both a seller's agent and a buyer's agent as specified by the Statutes of the State of Missouri.

The Company will also work with unrepresented buyers (and/or tenants) to sell its listings. The Company will work with buyers (and/or tenants) to sell listings of other brokers as transaction brokers as that term is defined by the Statutes of the State of Missouri. Licensees of the Company are authorized to accept offers of cooperation and compensation made to transaction brokers either through written offers of cooperation and compensation or through unilateral offers of cooperation and compensation made in any multiple listing services in which the Company participates. Licensees of the Company acting as transaction brokers must comply with applicable law and regulations regarding conduct as a transaction broker and appropriate disclosure of transaction broker status to the buyer (and/or tenant).

The Company will not act as a subagent and does not authorize its licensees to act in a subagency capacity.

The Company and its designated broker do not authorize its affiliated licensees to enter into written agency agreements on behalf of the Company and its designated broker. 

SELLER/BUYER AGENCY - Designated Agency 

(Transaction Brokerage with Buyers Authorized - No Subagency)

The Company acts as seller's agents (and/or landlord's agents) or as buyer's agents (and/or tenant's agents) through written listing agreements or written buyer (and/or tenant) agency agreements or other written agreements for brokerage services with sellers (and/or landlords) or buyers (and/or tenants).

In acting as seller's agents (and/or landlord's agents) or as buyer's agents (and/or tenant's agents), the Company acts as a limited agent as that term is defined by the Statutes of the State of Missouri and per the duties and obligations of a limited agent of a seller (and/or landlord) or buyer (and/or tenant) as specified by the Statutes of the State of Missouri. The Company's written agency agreements include the licensee's duties and responsibilities as a limited agent of the seller (and/or landlord) or as a limited agent of the buyer (and/or tenant).

The Company adopts the additional policy of appointing designated agents as limited agents for clients pursuant to the Statutes of the State of Missouri (known as "designated agency"). A designated agent shall be an affiliated licensee of the Company who is appointed in writing to be the limited agent of a client to the exclusion of all other affiliated licensees of the Company, pursuant to the Statutes of the State of Missouri. The appointment of a designated agent will be made in a listing agreement, buyer agency agreement, other written agreement for brokerage services or other written notice to the client. Office managers/branch managers/supervising brokers are authorized by this policy to make the appointment of designated agents on behalf of the Company.

In the event that a licensee personally represents both the seller and buyer or both the landlord and tenant in a particular transaction, that licensee shall be a dual agent and is required to comply with the provisions of the Statutes of the State of Missouri governing dual agents and the Company's policy regarding dual agents herein.

In the event that the designated broker of the Company or any of its office managers/supervising brokers learn confidential information about either party to a transaction or if such broker is consulted by any licensee involved in the transaction, such broker will be a dual agent. Such broker will also be a dual agent if the broker supervises the licensee for one side of the transaction and personally represents the other side of the transaction.

If acting as a disclosed dual agent under this policy, the dual agent in the transaction must have the consent of all parties to the transaction. The Company's listing agreements and buyer agency agreements contain permissions for the Company to act as a disclosed dual agent in the circumstances noted above.

If acting as a disclosed dual agent, the dual agent will be a limited agent for both the seller and buyer or the landlord and tenant as defined in the Statutes of the State of Missouri. The dual agent will have the duties and obligations of both a seller's agent and a buyer's agent as specified by the Statutes of the State of Missouri.

The Company will also work with unrepresented buyers (and/or tenants) to sell its listings. The Company will work with buyers (and/or tenants) to sell listings of other brokers as transaction brokers as that term is defined by the Statutes of the State of Missouri. Licensees of the Company are authorized to accept offers of cooperation and compensation made to transaction brokers either through written offers of cooperation and compensation or through unilateral offers of cooperation and compensation made in any multiple listing services in which the Company participates. Licensees of the Company acting as transaction brokers must comply with applicable law & regulations regarding conduct as a trans’n broker & appropriate disclosure of transaction broker status to the buyer (and/or tenant).

The Company will not act as a subagent and does not authorize its licensees to act in a subagency capacity.

The Company and its designated broker do not authorize its affiliated licensees to enter into written agency agreements on behalf of the Company and its designated broker.

NON-AGENCY - Transaction Brokerage Only 

(No Agency or Subagency Authorized)

The Company acts only as transaction brokers as that term is defined in the Statutes of the State of Missouri through written listing agreements or other written agreements for brokerage services with sellers (and/or landlords) and buyers (and/or tenants). If the Company expects to receive compensation from the party the Company assists, the Company shall enter into a written transaction brokerage agreement with the party or parties contracting for the broker's services. If the Company does not expect to receive compensation from the party the Company assists, a written transaction brokerage agreement is not required under the Statutes of the State of Missouri.

In acting as transaction brokers, the Company acts per the duties and obligations of a transaction broker as specified by the Statutes of the State of Missouri. The Company's written agreements include the licensee's duties and responsibilities as a transaction broker.

 The Company does not act as an agent, whether a seller's agent, landlord's agent, buyer's agent, tenant's agent, dual agent, designated agent or subagent of any other broker or agent.

The Company will work with buyers (and/or tenants) to sell listings of other brokers as transaction brokers as that term is defined by the Statutes of the State of Missouri. Licensees of the Company are authorized to accept offers of cooperation and compensation made to transaction brokers either through written offers of cooperation and compensation or through unilateral offers of cooperation and compensation made in any multiple listing services in which the Company participates. Licensees of the Company acting as transaction brokers must comply with applicable law and regulations regarding conduct as a transaction broker and appropriate disclosure of transaction broker status to the buyer (and/or tenant). If the Company expects to receive compensation from the party the Company assists, the Company shall enter into a written transaction brokerage agreement with the party or parties contracting for the broker's services.

The Company and its designated broker do not authorize its affiliated licensees to enter into written transaction brokerage agreements on behalf of the Company and its designated broker.

In light of the increasing emphasis in the industry on brokerage relationships, NETTWORK GLOBAL, LLC, prefers and urges that each licensee discuss brokerage relationships with customers and clients at the earliest possible time in the relationship to avoid later misunderstandings. All licensees must disclose not later than the time periods required by the Rules and Regulations.

Complementing the brokerage relationships policy chosen by the company are the Missouri Real Estate Commission Rules and Regulations on Brokerage Relationships Disclosure (Section 2250-8.095). NETTWORK GLOBAL, LLC, maintains a policy promoting discussion of brokerage relationships at the first reasonable opportunity with a customer or a client. Each agent is required to attend training and education on brokerage relationships disclosure within the company training program. 

The Missouri brokerage relationships statute requires use of the Broker Disclosure Form as prescribed by the Missouri Real Estate Commission. The Broker Disclosure Form must be given to any person who has not entered into an agreement to be represented. This includes prospective sellers, buyers, landlords and tenants. The Form must be given to the person at the earliest practicable opportunity during or following the first substantial contact.

The Rules and Regulations require the licensee to give disclosure of his/her brokerage relationship on the following terms.

SELLER’S AGENT

1. When acting as a SELLER’S AGENT, you must disclose this status at the following times: (Initial oral disclosure is sufficient. There must also be a written confirmation, which is usually in the sale contract.)

2. Disclose seller agency status to an unrepresented buyer no later than first showing of real estate.

3. Disclose seller agency status to a buyer’s agent or represented buyer upon first contact with the buyer’s agent or buyer, whichever occurs first.

4. Disclose seller agency status to BOTH a transaction broker assisting the buyer AND the buyer upon first contact with each.

5. When acting as a BUYER’S AGENT, you must disclose this status at the following times: (Initial oral disclosure is sufficient. There must also be a written confirmation, which is usually in the sale contract.)

   1. Disclose buyer agency status to an unrepresented seller no later than first showing of real estate.

   2. Disclose buyer agency status to a seller’s agent or represented seller upon first contact with the seller’s agent or seller, whichever occurs first.

   3. Disclose buyer agency status to BOTH a transaction broker assisting the seller AND the seller upon first contact with each.

   4. If there has been no contact with the seller’s agent or transaction broker or seller before the presentation of an offer, the buyer’s agent MUST establish first contact with the seller’s agent or transaction broker and disclose buyer agency status PRIOR TO presentation of an offer.

6.  When acting as a TRANSACTION BROKER, you must disclose this status at the following times: (Initial oral disclosure is sufficient. There must also be a written confirmation, which is usually in the sale contract.)

TRANSACTION BROKER ASSISTING THE SELLER:

1. Disclose transaction broker status to an unrepresented buyer no later than first showing of real estate.

2. Disclose transaction broker status to a buyer’s agent or represented buyer upon first contact with the buyer’s agent or buyer, whichever occurs first.

3. Disclose transaction broker status to a seller upon establishing the transaction broker relationship with the seller.

4. Disclose transaction broker status to BOTH a transaction broker assisting the buyer AND the buyer upon first contact with each.

5. If there has been no contact with the buyer’s agent or transaction broker or buyer before the presentation of an offer, the seller’s transaction broker must disclose the transaction broker status to the buyer’s agent or transaction broker when the first contact is established by the buyer’s licensee.

TRANSACTION BROKER ASSISTING THE BUYER

1. Disclose transaction broker status to an unrepresented seller no later than first showing of real estate.

2. Disclose transaction broker status to a seller’s agent or represented seller upon first contact with the seller’s agent or seller, whichever occurs first.

3. Disclose transaction broker status to a buyer upon establishing the transaction broker relationship with the buyer.

4. Disclose transaction broker status to BOTH a transaction broker assisting the seller AND the seller upon first contact with each.

5. If there has been no contact with the seller’s agent or transaction broker or seller before the presentation of an offer, the buyer’s transaction broker MUST establish first contact with the seller’s agent or transaction broker and disclose transaction broker status PRIOR TO presentation of an offer.

DUAL AGENT

1. When acting as a DUAL AGENT, you must disclose this status IMMEDIATELY upon its occurrence to all parties to the transaction.

MANDATORY BUYER AGENCY EVENTS 

It is the policy of NETTWORK GLOBAL, LLC that any licensee working in the following circumstances MUST act as a buyer's agent and may not act as a subagent of the seller or as a transaction broker. 

1. The licensee is buying property for her or himself. 

2. The licensee is working with the licensee's immediate family, that is, mother, father, brother, sister, children, any of their spouses or any business owned fully or partially by any of these persons.

3. The licensee is working with any relative by blood or marriage not in the licensee's immediate family as defined above.

4. The licensee is working with a close friend, business associate or long-term past customer or client.

5. The licensee is working in an agency capacity with a seller of a currently or previously listed property to find a property to buy. The licensee may be concurrently working with the seller to sell the property and also working to buy a new property. This event also applies to a seller whose property is under contract or closed and is working to by a new property.

One of the most important statutory duties of an agent is to maintain the confidentiality of the client, whether buyer or seller or lead. In addition, the Missouri brokerage relationship statute provides that a transaction broker has similar duties of confidentiality. The Missouri brokerage relationship statute defines confidential information. It includes information made confidential by written instruction from the client and information made confidential by the statute. The statute notes that a licensee should treat as confidential information provided by the client that may reasonably be expected to have a negative impact on the client's real estate activity. Licensees should pay particular attention not to make unauthorized or offhand comments about a client's situation or a client's property in a way, which could be considered a violation of the duty of confidentiality. In particular, five areas are considered of particular importance. They are:

1. The lowest price a seller is willing to accept.

2. The highest price a buyer is willing to pay.

3. The motivation of either party to enter into the transaction.

4. That a client will agree to financing terms other than those offered.

5. Previous offers and counteroffers of either party. (Note: “Previous” offers and counteroffers indicates offers and counteroffers that have not resulted in an “accepted” contract. The existence, terms and/or conditions of “current” offers and counteroffers in the process of negotiation are subject possible disclosure under Standards of Practice 1-15 and 1-13 of the Code of Ethics. See the “Cooperation and Compensation” section and “Sale Contract Policy” section of this Manual for further information.)

DUAL AGENCY

If disclosed dual agency is offered, it is particularly important for each agent to realize that she/he must hold confidential the information of both buyer and seller, regardless of which party the particular agent is working with.

In offering disclosed dual agency and designated agency, the company and all of its associates must be sensitive to confidential information within the office and among the associates of the company. The following procedures and policies are intended to protect the confidentiality of the company's clients.

1. Associates should not discuss confidential information of the client between or among themselves.

2.  Comments at sales meeting should not reveal confidential information of the client without the client's permission.

3.  Office files of listings and pending sales are confidential and may not be accessed except for authorized staff and the particular licensee involved in the listing or transaction.

4.  Fax transmissions are confidential. Office staff will distribute faxes in envelopes so as not to reveal contents to persons other than to whom the fax is addressed.

5.  Telephone messages with confidential information will be distributed in an envelope.

6.  Contracts, offers, counteroffers or other transactional documents will be delivered to the person addressed in envelopes. Persons other than the addressee are not authorized to open any such envelope.

COOPERATION/COMPENSATION OF BUYER'S AGENTS, AND TRANSACTION BROKERS 

NETTWORK GLOBAL, LLC believes it is in the best interests of the company's sellers to give property the widest possible exposure of possible showings. Because buyer's agents, subagents, and transaction brokers conduct showings in the market, NETTWORK GLOBAL, LLC cooperates and compensates all types of cooperating brokers at the same level of cooperative compensation.

FAIR HOUSING POLICY 

NETTWORK GLOBAL, LLC, believes that fair housing policies are not just the law of the land but simply the right thing to do. NETTWORK GLOBAL, LLC, maintains a strong policy upholding all federal and state fair housing laws and Article 10 of the REALTOR® Code of Ethics. In addition, NETTWORK GLOBAL, LLC, requires each licensee and staff member to participate in fair housing education. 

Accordingly, NETTWORK GLOBAL, LLC, prohibits any licensee or staff member from discriminating against any person in the provision of any of the company's services on the basis of race, color, religion, sex, handicap, familial status, national origin or ancestry.

Among the prohibited practices which against this policy and the law are:

1. Refusing to show, sell or rent based on a person being a member of a protected class.

2. Different treatment/disparate treatment to persons of a protected class.

3. Steering: A person shall not encourage or discourage another from moving in to any area because of the race, color, religion, sex, handicap, familial status, national origin or ancestry of the present residents.

4. Discriminatory advertising that expresses a preference, limitation or discrimination for buyers or tenants of a particular race, color, religion, sex, handicap, familial status, national origin or ancestry.

5. Harassment (i.e., coercion, intimidation, threats or interference with a person's fair housing rights or because a party is abiding by fair housing law)

6. Applying more burdensome criteria to applicants of protected classes

7. Blockbusting: A person is prohibited from inducing or attempting to induce another to sell or rent a property by making any express or implied representations regarding the entry or prospective entry into a neighborhood of a person or persons of a particular race, color, religion, sex, handicap, familial status, national origin or ancestry.

Licensees and staff should be aware that persons with AIDS are considered handicapped and "familial status" means families with minor children.

NETTWORK GLOBAL, LLC, maintains a strong policy against any antitrust involvement by the company, its licensees or employees. Few obligations can be taken more seriously than this area. NETTWORK GLOBAL, LLC, requires each person associated with the company to participate in antitrust education and acknowledge his/her understanding of these principles. Two areas are the primary antitrust focus.

1. PRICE FIXING: Price fixing means any agreement, setting, consent to, suggestion or implication with a competitor regarding a fee to charge. This includes fees charged to the public, fees split among brokers and fees paid to licensees. "Agreement" can be overt, covert, express or implied. It is very broad-based and can even be suggested or implied by casual conversation with any competitor.

Accordingly, NETTWORK GLOBAL, LLC, its licensees and staff are prohibited from discussing with any competitor, including an individual licensee, any aspect of the fees the company charges or how total fees are split. NETTWORK GLOBAL, LLC, determines its charges based on the company's own independent internal analysis of its expenses, its revenue, its desired profit level and its choice of the type and level of service it desires to provide.

In any discussion with a member of the public about our charges (such as a listing appointment), the only acceptable answer about why the company charges what it does is the foregoing explanation. Do not be drawn into a discussion about company fees as "the standard rate," "the Board rate," "the typical rate" or the like. If questions arise about other company's fees, suggest that the potential client call several competitors and ask about their rates.

2. BOYCOTTING COMPETITION: It is also a violation of federal law to make any agreement, express or implied, with a competitor to boycott or otherwise not deal with a third competitor. For example, assume Discount Realty opens up an office. Then assume Bob Broker, a licensee with Big Bucks Broker, and Alice Licensee, a licensee with Just As Big Broker are having lunch one day and discuss the competitive impact of Discount Realty. Bob and Alice agree that Discount is a danger to their large listing portfolios and further agree that individually they will not show Discount's listings because "Something has got to be done about that price-cutting monger." This simple agreement with two licensees is an illegal boycott. Even if it were implicit and not overt, it could be construed as an illegal boycott.

NETTWORK GLOBAL, LLC, prohibits any licensee or staff member from making any agreement or suggestion with a competitor, including an individual licensee, that he/she or the company will not deal with a third broker or licensee, whether it be a listing company, buyer's brokerage, discount broker or any other broker or licensee whatever.

Each licensee and staff member of NETTWORK GLOBAL, LLC, is required to view the NAR DVD on antitrust, read the NAR guidebook "Antitrust Compliance Program," execute the acknowledgment in the guide book and participate in training on antitrust.

Internet Advertising Overview

1. All advertising, web pages, domain names, sponsorships, links, frames, blogs and other electronic media (referred to as “Internet advertising”) must conform to state and federal law and to any identity standards which the company or the company’s franchise has or may have in the future. 

2. All Internet advertising must be approved by company management before the advertising begins. This includes personal websites, blogs and any postings of listings on any site other than the company's website, the company’s franchise’s website or syndicated sites.

3. All contracts for Internet advertising must be reviewed and approved by company management before the licensee enters into the contract.

4. All Internet advertising must contain appropriate content and shall not contain links to any inappropriate content nor be sponsored by any person or entity which has not been specifically approved by company management.

5. The licensee shall be responsible for all costs of Internet advertising which has been contracted for by the licensee. The licensee will not enter into any contracts for Internet advertising in the company’s name and shall enter into such contracts in the licensee’s individual name. If the company becomes liable for any contracts entered for Internet advertising entered into by the licensee, the licensee will promptly reimburse the company the costs of the advertising and/or the company will have the right to deduct such costs from any pending commissions due the licensee.

6. For more information on this, reference the NWG | POLICY ON ADVERTISING & DIGITAL MARKETING

Missouri Unsolicited Email Law 

Missouri’s Unsolicited Commercial Email law requires that a sender of the unsolicited commercial email must comply with certain provisions and include certain content in the message and subject line.

However, an exemption exists for a person in a licensed trade or profession who is attempting to set an appointment for actions relating to the licensed trade or profession. The Missouri law does not apply in most circumstances for real estate licensees. 

However, the federal “CAN-SPAM” law has largely pre-empted the Missouri law and is described in the article in the next section.

Federal “CAN-SPAM” Law

The following article is excerpted from REALTOR®.org. It is an excellent summary of the Federal “CAN-SPAM” law. It is the policy of NETTWORK GLOBAL, LLC that the provisions of the CAN-SPAM law as described in this article are required to be followed by all licensees.

Overview

On Tuesday, December 16, 2003, President Bush signed S. 877, the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, or the “CAN-SPAM Act of 2003” ("Act"). The Act creates a single national standard designed to control the growing problem of deceptive or fraudulent commercial e-mail. This legislation was largely sought by retailers, marketers and Internet account providers seeking a single set of rules that would apply nationwide and preempt 35 state spam laws. The Act does not ban commercial e-mails but rather outlines a series of practices that must be followed when sending commercial e-mails. The Act does ban certain fraudulent or deceptive practices and criminalizes techniques used by spammers to avoid detection. The Act also calls upon the Federal Trade Commission ("FTC") to prepare a report to Congress within 6 months containing a plan and timetable for creating a Do-Not-E- mail ("DNE") Registry and addressing the feasibility, problems and issues involved in the creation of such a Registry. The Act does not require the FTC to create a DNE Registry. State laws exclusively regulating use of electronic mail to send commercial messages are preempted by the Act. However, the Act does not preempt state laws or portions of state laws that prohibit falsity or deception in any electronic mail message or attachment to such an e-mail.

I. Scope of and Required Email Practices

What emails are covered by the Act?

The Act applies to all “commercial e-mails”, whether solicited or unsolicited. The Act defines commercial emails as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service.”

While the Act does not define “primary purpose” or “commercial product or service,” the Act does require the Federal Trade Commission (“FTC”) to issue regulations by January 1, 2005 on how to determine the primary purpose of a message.

What information does the Act require senders of commercial emails to include in their emails?

The Act requires all commercial emails to include:

• a legitimate return e-mail and physical postal address,

• a clear and conspicuous notice of the recipient's opportunity to “opt- out,” that is, to decline to receive any future messages,

• a mechanism that may be used or an e-mail address (active for at least 30 days after message transmission) to which a recipient may send a message requesting not to receive any future e-mail messages from the sender,

• a clear and conspicuous notice that the message is an advertisement or solicitation, and

• clear notice in subject heading if messages include pornographic or sexual content.

Does the Act contain an exemption from the above requirements for e-mails sent to those individuals or firms with whom the sender has an existing business relationship? 

No, the Act does not exempt e-mails to recipients with whom the sender has a prior or existing business relationship, as many of the State laws do. Instead, the Act exempts only “transactional or relationship messages” from complying with these practices.

What is a “transactional or relationship message”? 

A “transactional or relationship message” is an electronic mail message the primary purpose of which is:

• to facilitate, complete, or confirm a commercial transaction that the recipient has previously agreed to enter into with the sender;

• to provide warranty information, product recall information, or safety or security information with respect to a commercial product or service used or purchased by the recipient;

• to provide information with respect to a subscription, membership, account, loan, or comparable ongoing commercial relationship involving the ongoing purchase or use of products or services offered by the sender to the recipient;

• to provide information directly related to an employment relationship or related benefit plan in which the recipient is currently involved, participating, or enrolled, or;

• to deliver goods or services, including product updates or upgrades, that the recipient is entitled to receive under the terms of a transaction that the recipient has previously agreed to enter into with the sender.

The Act provides that the FTC may, by regulation, modify the definition of “transactional or relationship message” to expand or contract the categories of messages that are treated as commercial e-mails under the Act. 

Are there any circumstances where a commercial e-mail does not have to include the notice that the message is an advertisement or solicitation?

Yes. If the recipient has given their prior consent to receive commercial e- mails from the sender, the sender does not have to include the clear and conspicuous notice that the e-mail is an advertisement or solicitation.

Such messages must, however, include notice of the recipient's opportunity to decline to receive other messages from the sender and the sender's physical postal address.

Must the sender honor an opt-out request made by a recipient? 

Yes, the Act requires that senders honor all opt-out requests. If a recipient makes a request to not receive commercial mail messages from the sender, it is unlawful for the sender to send another commercial electronic mail message at any time after ten days from the receipt of the original message unless the recipient has consented to receive e-mails subsequent to the first request to not receive commercial e-mails. Senders are also prohibited from selling, leasing exchanging or otherwise transferring for any purpose, disclosing the e-mail address of any recipient who has opted-out once the opt-out request has been received.

Can the sender offer a menu of opt-out options? 

Yes. A sender of commercial e-mails may give recipients a menu of options from which to choose the types of commercial e-mail they no longer wish to receive, as long as the menu includes an option to receive no further commercial email communications of any kind from the sender.

Would e-mails sent by the listing agent or broker to a seller who has listed their home for sale, or by an agent or brokerage to a prospective buyer, be considered transactional or relationship messages?

In either case, as long as the broker or agent has established a service relationship with the client, such as listing the property for sale or entering into a buyer's broker agreement with an interested buyer, such communications between broker/agent and customer/client are probably covered. Other messages, such as those that solicit sellers or buyers who are not presently firm clients, are probably not covered. …

II. Deceptive And Other Egregious Practices Are Expressly Prohibited

What does the law prohibit?

The Act also prohibits the most egregious spam practices including: e-mail harvesting (email addresses gathered by computer programs that search public areas on the Internet to compile, capture, or otherwise "harvest" lists of e-mail addresses from web pages, newsgroups, chat rooms, and other online destinations); dictionary attacks (a technique to create as many possible letter combinations for e-mail addresses at large ISPs or e- mail services, hoping to find a valid address); sending bulk spam from a computer accessed without authorization; sending bulk spam through open relays (open mail servers are configured to accept and transfer email on behalf of any user anywhere, including unrelated third parties and so an "open relay" in your e-mail server allows any e-mail sender anywhere to pass messages through your server and onto the ultimate recipients); falsifying header information; using deceptive subject lines; registering for 5 or more e-mail accounts using false registration information; and using these accounts to send bulk spam.

Is there a safe harbor?

There is no safe harbor. However, in actions taken by state AGs and ISPs, courts are permitted to consider whether defendants have implemented and followed commercially reasonable compliance procedures in setting the level of damages.

How do these new rules affect existing state spam rules?

The Act preempts all state laws that expressly regulate commercial e-mail messages, except to the extent that the state laws regulate falsity or deception. State laws are preempted even if they are more stringent than the Act; thus, California’s new anti-spam law is largely preempted.

INTERNAL VERIFICATION PROCEDURES: 

NETTWORK GLOBAL, LLC, maintains a system of checking and verifying both listing contracts and documents and sale contracts and documents for accuracy, enforceability and compliance with Missouri Real Estate Commission Rules and Regulations. Each licensee is expected to cooperate fully and promptly with any requests for verification, further information or correction of any oversights in the documents.

To understand the document verification process, please refer to the Compliance Procedures Supplement. 

For other related policies, see the section on Risk Management Policies.

Both the State of Missouri and the federal government have adopted “No Call” laws or rules that affect the Company’s business and licensee’s activities. Licensees must follow these No Call policies strictly.

Missouri No Call Law

Missouri’s No Call law provides that a telemarketer may not call a number that has been registered.

However, an exemption exists for a person in a licensed trade or profession who is attempting to set an appointment for actions relating to the licensed trade or profession. The Missouri law does not apply in most circumstances for real estate licensees.

The website for the Missouri No Call law is: http://www.ago.mo.gov/nocalllaw/nocalllaw.htm

However, the federal No Call rules do apply to Missouri licensees and the Company’s policies are set out in the next section.

Federal Do Not Call Rules

The federal No Call rules are administered by 2 federal agencies, the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC). There are NO exemptions under the federal rules for real estate licensees. All NETTWORK GLOBAL, LLC licensees must strictly comply with the federal rules.

The FCC Rule covers both interstate and intrastate calls. Real estate licensees are considered telemarketers and make telephone solicitations under the definitions in both the FCC and FTC rules.

A telephone solicitation is defined as the initiation of a telephone call for the purpose of encouraging the purchase of goods or services. Real estate licensees make many types of calls that may fit this definition of telephone solicitation. Some of the common calls for real estate licensees that fit this definition are:

• FSBO calls

• Expired listing calls

• Cold call prospecting

No telephone solicitation/telemarketing calls are allowed to a residential telephone subscriber:

• Before 8 a.m. or after 9 p.m.

• Registered on the Federal Do Not Call List.

Consumers may register their telephone numbers with the FTC’s Do Not Call database. 

Once a consumer registers their number on the Federal DNC List, a licensee may not make a telephone solicitation call to that number unless:

• You have the prior, express, written permission to call them at that number.

• OR, you have an “established business relationship” with that registered consumer.

“Established business relationship” is defined by the Federal Rules as:

"The term established business relationship means a prior or existing relationship formed by a voluntary two-way communication between a person or entity and a residential subscriber with or without an exchange of consideration, on the basis of the subscriber’s purchase or transaction with the entity within the eighteen (18) months immediately preceding the date of the telephone call or on the basis of the subscriber’s inquiry or application regarding products or services offered by the entity within the three months immediately preceding the date of the call, which relationship has not been previously terminated by either party."

For real estate licensees, "established business relationship" will usually mean:

1.      A closed transaction within the 18 months prior to your call; OR

2.      An inquiry about property or about our services to you or the office within the 3 months prior to your call.

In addition, if any consumer that is called, whether with permission or not on the Do Not Call List or within any of the exceptions discussed above, make a request to be put on the company’s Do Not Call List, that request must immediately be honored.

NETTWORK GLOBAL, LLC procedures to comply with these rules are as follows: 

1. No telephone solicitations are allowed before 8 a.m. or after 9 p.m. whether or not the called person is on the Do Not Call List.

2. No telephone solicitations are allowed to any person on the Federal Do Not Call List.

3. No telephone solicitations are allowed to any person on our company Do Not Call List.

4. As part of the company’s regular training program, all licensees are required to attend company training about these procedures to comply with the Federal and State Do Not Call rules and law.

5. NETTWORK GLOBAL, LLC policy is that the Company does not sell, rent, lease, purchase or use the national do-not-call database, or any part thereof, for any purpose except compliance with the Do Not Call rules and laws and to prevent telephone solicitations to telephone numbers registered on the national database. The company purchases access to the relevant do-not- call data from the administrator of the national database and does not participate in any arrangement to share the cost of accessing the national database, including any arrangement with telemarketers who may not divide the costs to access the national database among various client sellers.

6. If you make a telephone solicitation to a telephone number that is NOT listed on the DNC database or on the company DNC database, you must still comply with the following:

   1. Identify yourself.

   2. Identify the company (NETTWORK GLOBAL, LLC).

   3. State your telephone number

   4. Immediately honor any “Do Not Call” request and report the Do Not Call request to the Company Do Not Call Coordinator for inclusion on the company specific DNC list.

PERMISSIBLE CALLS

The following telephone solicitation calls are permissible if the conditions described are followed:

1. A call to a business number. The rules apply only to residential subscribers.

2. A call to a person who has given prior, express, written permission. Prior, express permission is defined as:

"… Such permission must be evidenced by a signed, written agreement between the consumer and [company] which states that the consumer agrees to be contacted by this [company and licensee] and includes the telephone number to which the calls may be placed;" (Emphasis added.) 

3. Calls to a client/customer within 18 months of the closing of a sale or lease transaction with that client/customer.

4. Calls to a prospect who has made an inquiry to you or the office about property or about brokerage services, IF the inquiry was made within the past 3 months. Licensees who make calls on this basis MUST keep a written record or log that records the date of the first inquiry of the prospect. If the licensee does not have a written record or log of the initial inquiry, calls may not be made to that prospect.

OPEN HOUSE SIGN IN SHEETS:

It is understood that the use of Open House sign in sheets is commonly used as a method of obtaining express, written permission for contact. NettWork Global suggests that permission is received from open house attendees before contact. 

WEBSITE RESOURCES FOR THE DO NOT CALL RULES

FTC Homepage for Do Not Call List: www.ftc.gov/bcp/conline/edcams/donotcall FCC Homepage for Do Not Call List: www.fcc.gov/cgb/donotcall/

To register a number on the Do Not Call list: www.donotcall.gov

NETTWORK GLOBAL, LLC, accepts listings and seeks to build an inventory of available merchandise for sale to buyers of homes and investment real estate. It offers the merchandise directly to the public and by cooperating with other licensees, whether they are buyer's agents, subagents or transaction brokers (as per prior policy in this manual).

Listings not only represent "the merchandise on the shelf" but also present a significant area of risk. Statistically, at least two-thirds of all claims filed against real estate licensees involve claims of misrepresentation, fraud and/or breach of fiduciary duty. It is at the listing level that many of these claims originate. As a listing company, it is imperative that NETTWORK GLOBAL, LLC, develop clear policies to reduce the risk of later claims from oversights and exposures at the time of listing.

The following policies apply to all listings taken by NETTWORK GLOBAL, LLC.

TYPES OF LISTINGS: 

In accord with the REALTOR® Code of Ethics, NETTWORK GLOBAL, LLC, urges the exclusive listing of property, unless it is contrary to the best interests of the owner. Open listings may be accepted only with consent of a manager or broker of the company. Net listings are not accepted as such would be a violation of Missouri Real Estate Commission Rules and Regulations. (Section 2250-8.090(4)(F)). A net listing is one in which the owner agrees to let the licensee keep any sale proceeds over a "net" price the owner wants for the property. 

COMMISSION POLICIES: 

For specific terms on commissions and fees, please refer to the Agent Agreement.

1.   Rates and prices charged for services to the public. Examples of areas to consider, depending on the company's selection of brokerage relationships policy and business practice, are:

a.   Charges to sellers for listings.

b.   Charges to buyers for representation.

c.   Charges to owners for leasing.

d.   Charges to clients for consulting.

e.   Charges for any other services it renders.

2.   Compensation offered to subagents.

3.   Compensation offered to buyer's agents.

4.   Compensation offered to transaction brokers.

5.   Compensation offered to the company's licensees.)

OTHER LISTING TERMS: 

MINIMUM SERVICES IN EXCLUSIVE BROKERAGE AGREEMENTS

Missouri license law requires that three services must be provided if a real estate broker desires to enter into an exclusive brokerage agreement with a client. Section 339.780(7) sets out the three minimum services as follows:

 “7. All exclusive brokerage agreements shall specify that the broker, through the broker or through one or more affiliated licensees, shall provide, at a minimum, the following services:

(1)  Accepting delivery of and presenting to the client or customer offers and counteroffers to buy, sell, or lease the client's or customer's property or the property the client or customer seeks to purchase or lease;

(2)  Assisting the client or customer in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and the counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and

(3) Answering the client's or customer's questions relating to the offers, counteroffers, notices, and contingencies.”

DISCLOSURE OF ADVERSE MATERIAL FACTS:

Missouri statutes require the disclosure to any customer all "adverse material facts" known by the licensee. (Note: There is a difference in the duty of a limited agent to also disclose facts which "should have been known" and the duty of a transaction broker to disclose facts of which the transaction broker has actual knowledge. Even though this difference exists in the statute, all licensees should take great care to disclose adverse material facts within the reasonable expertise of the typical real estate licensee. A good rule of thumb is "When in doubt, disclose.") Adverse material facts are defined as facts related to the physical condition of the property not reasonably ascertainable or known to a party which negatively affects the value of the property.

However, the statute also adds a list of the types of facts included in adverse material facts, some of which do not have a connection to the physical condition of the property. These matters include:

1. Environmental hazards affecting the property;

2. Physical condition of the property which adversely affects the value of the property;

3. Material defects in the property;

4. Material defects in the title to the property;

5. Material limitation of the party's ability to perform under the terms of the contract.

SELLER DISCLOSURE STATEMENTS:

Seller Disclosure Statements (also sometimes called "Property Condition Reports") are a detailed statement by the seller of his/her knowledge of the condition and features of the property. NETTWORK GLOBAL, LLC, has a policy of urging the use of seller disclosure statements to clarify and declare the condition of the property at the time of listing. A licensee should request a disclosure statement on every listing. It is in the best interest of the seller to complete a disclosure statement because it can avoid future misunderstandings with a buyer as to what the seller's knowledge of the condition of the property was at time of listing.

In addition, it is a valuable risk management tool for NETTWORK GLOBAL, LLC and assists the company in complying with its obligations to disclose adverse material facts. By the seller making accurate, factual statements as to his/her knowledge of the property, later controversies as to "who said what" can be minimized.

A listing licensee should be careful to keep the seller disclosure statement current. If the information becomes inaccurate because the property's condition has changed, a seller (and licensee!) could have liability for allowing known inaccurate information to be given to buyers.

Some sellers may refuse to sign a seller disclosure statement. In Missouri, there are no state or federal laws, which require a seller to execute such a statement. NETTWORK GLOBAL, LLC, will accept a listing for which a seller refuses to complete a seller disclosure statement. If a seller will not complete a disclosure statement, she/he can be counseled that completion can be a protection for her/him in that a buyer would have difficulty in claiming an oral representation in conflict with a written representation. Also, a seller should be reminded that the vast majority of properties are sold with completed seller disclosure forms. Her/his failure to have such a disclosure form available to buyers could place the property at a competitive disadvantage and bring into question the credibility of the property.

Particular note should be paid to lead based paint disclosures. Federal law requires certain disclosures on properties built prior to 1978 about the hazards of lead based paint and require that the buyer be given the opportunity for inspections for lead based paint. Licensees must strictly comply with the terms of the federal lead based paint disclosure statute and attend training on this topic. Federal penalties for failure to comply with the statute are significant, including fines up to $10,000 per occurrence.

In certain situations, "representatives," such as personal representatives of estates, trustees and corporate owners may not be willing to complete a disclosure statement. In that event, the licensee should have an uncompleted disclosure statement form signed by the representative clearly indicating the lack of personal knowledge by the signer. However, a statement that the person “hasn’t lived in the property” alone is not an absolute indicator that the person has no knowledge of any of the conditions in the property. An owner of investment property likely has knowledge of some conditions on the property because of what was reported to them by tenants. A personal representative of an estate who is the child of the deceased very likely may have some knowledge of the property because of conversations about the property that the deceased parent may have had with the child. Any seller should complete the disclosure statement with any information that they may have, including information given to them by another person.

In completing the disclosure statement, the seller her/himself MUST fill in the form. An NETTWORK GLOBAL, LLC licensee MAY NOT complete the form on behalf of a seller. If a licensee completes the form, much of the benefit of this risk management technique is lost.

In general, the licensee may rely on the statements of the seller. The Missouri brokerage relationships statute states that the licensee owes no duty to conduct an independent inspection of the property for the benefit of the customer and owes no duty to independently verify the accuracy or completeness of any statement made by the client or any independent inspector.

However, a licensee may not ignore suspect items on the seller disclosure statement just because the seller completed it. If a licensee, in his/her reasonable judgment and expertise, suspects that a statement is not accurate, the licensee should seek further information from the seller. An example might be a seller who states that there has been no water in a basement in which there are obvious water stains and cracks. A licensee's best course is to seek further information from the seller as to the exact nature of their statements and then accurately convey this information to any prospective customer, in accord with the obligation to disclose adverse material facts.

In addition, a licensee should pay particular attention to inclusions and exclusions in the sale of the property and verify the seller's intention. For example, if an owner checks off that the master bedroom draperies will not be sold with the house, the licensee should verify that this is the seller's intent and then make clear in any promotional material mentioning draperies that the master bedroom draperies are excluded.

Also, it is very important to make sure the exclusion is expressly specified in the contract. The seller disclosure statement is not usually incorporated into the terms of the contract. Thus, a licensee should not rely on the seller disclosure statement to control the contract but must make sure that the exact understandings of the parties are reflected in the sale contract.

Another example of proper licensee procedure involves using reasonable diligence to observe matters in the seller disclosure statement. If an owner states in the disclosure statement that there has never been any water in the basement and the licensee notices brown water stains in one corner of the basement, the licensee must question the owner about the accuracy of the statement. Again, a licensee may not ignore her/his reasonable, normal, real estate licensee knowledge and information because an owner represents otherwise.

ACCURACY OF LISTING INFORMATION: 

Several "traps" of liability exist in taking a listing. These are covered below. Each NETTWORK GLOBAL, LLC, licensee should take careful note of these hazard areas and be particularly diligent in handling these issues.

ROOM COUNTS: NETTWORK GLOBAL, LLC, licensees must be careful to accurately represent the number of rooms, bedrooms and bathrooms in a property. Generally, questions of whether an area constitutes a room, bedroom or bathroom are resolved by determining whether an appraiser would count the area as such. For example, basement rooms, which are below grade, are not generally considered rooms, bedrooms or bathrooms for appraisal purposes. Another example is that a room normally must have a closet to be considered a bedroom. Also, "walk- through" rooms are not usually considered separate bedrooms. These ambiguous areas can be denoted by a symbol such as a "+" sign after the room count (e.g. 8+ rooms, 4+ bedrooms) or highlighted in remarks for the property or other descriptive information.

ROOM SIZES: The licensee should personally measure each room. DO NOT take room sizes from a former listing company's form. Be cautious about taking room sizes from plans. There may have been construction changes not reflected on the plans. Measure room sizes to feet and inches. (NOTE: Many MLS systems do not allow input of room sizes to feet and inches. In such case, round inches to the nearest foot, e.g., 7 feet 7 inches rounds to 8 feet but 7 feet 5 inches rounds to 7 feet.)

LOT SIZE: Lot size and acreage should only be determined from an accurate survey, the owner's real estate tax bill or the county tax records. The licensee should NOT attempt to measure lot size on her/his own.

TAXES: Taxes should be determined from county tax records or the owner's tax bill. The licensee should not rely on the statements of the owner as to tax amounts.

MODERNIZATION INFORMATION: Often, good selling features about a property are the updates or upgrades made by the owner. In order to accurately advertise these items, NETTWORK GLOBAL, LLC, requires that the owner verify any information given to us before it can be used in any promotional material on the listing.

Items such as "new" roof, "new" air conditioner, "new" furnace, "new" bathroom, "new" kitchen, etc. are misnomers because of the difficulty in defining what "new" means.

Substantiation of the information means the owner must supply NETTWORK GLOBAL, LLC, with receipts, canceled checks or other proof of payment of upgraded or rehabbed items. Once provided, then NETTWORK GLOBAL, LLC, will accurately advertise and promote these good selling features with language like "New roof, 2004","New furnace, 2005","Kitchen remodeled, 2006".

 If it is not possible to substantiate modernized features, they can be advertised or promoted as "Newer" or "Recent", as in "Newer furnace" or "Recently remodeled bathroom".

SIGNATURES: 

Missouri Real Estate Commission Rules and Regulations require written listing agreements signed by "all owners" (Section 2250-8.090(4)(A)(11)). In addition, NETTWORK GLOBAL, LLC, desires that listing agreements be enforceable in every possible situation to ensure that the company and licensee will be paid under the terms of the listing agreement. Because of these factors, licensees must secure listing agreements with the proper signatures before the listing will be promoted or advertised in any way. Licensees should be especially aware in the several situations below.

SPOUSAL SIGNATURES: A spouse must ALWAYS sign a listing agreement unless certain conditions exist, as follows:- we should pay more attention to this as a team. How much attention should we pay for compliance at the Brokerage level?

1. A waiver of marital rights given by the non-signing spouse exists and a copy is provided to NETTWORK GLOBAL, LLC.

2.  A quitclaim deed made to the signing spouse has been executed and recorded by the spouse not signing and a copy is provided to NETTWORK GLOBAL, LLC.

3.  A prenuptial agreement waiving the non-signing spouse's rights exists, a copy of the prenuptial agreement has been given to NETTWORK GLOBAL, LLC, and legal counsel for NETTWORK GLOBAL, LLC, has consulted with a title company to determine the validity of the prenuptial agreement.

Most often, these questions come up when the property is titled only in the "selling" spouse's name and the "non-selling" spouse claims that he/she has no interest in the property. Typical situations are a widowed person who has remarried or a divorced person who has remarried. The spouse not on the title ALWAYS has a marital interest under the Probate Code of the State of Missouri and MUST sign the listing agreement unless one of the three exceptions noted above exists.

PROPERTY IN ESTATE: When property is in an estate, ALL heirs AND spouses must sign. If a Personal Representative (Executor) has been named, it is possible that the Personal Representative has authority to sell the property. The licensee must secure a copy of the part of the will or court decree that empowers the Personal Representative to sell property. The power of sale granted the Personal Representative by a will may not be acceptable to a title company until the time to file a will contest has expired, which is six months after the first publication of notice of Letters of Administration being issued. Management or legal counsel for NETTWORK GLOBAL, LLC will consult with a title company to determine if the power to sell in the will is acceptable.

TRUSTEES: If a property is held by a trust, the trustee will normally be empowered to sell. However, the licensee must secure a copy of the part of the trust which empowers the trustee to sell because some trusts require the signatures of more than one trustee to sell as in the case of an individual and corporate trustee (bank). The trustee's spouse does not sign the listing agreement because the trustee is acting in a representative capacity. 

SELLER INCAPACITATED: If a seller is not mentally competent to sell, a guardian must be appointed by the Probate Court and the guardian must obtain a court order to sell the property. Until such time, the property cannot be sold even if a child, sister, niece, nephew, etc. is also on the title. Also, if a property is jointly owned in this fashion, the spouse of the "second signer" (child, sister, niece, nephew, etc.) must also sign the listing contract. It is possible that a properly drawn Durable Power of Attorney may provide a means to sell this type of property. However, before relying on the Durable Power of Attorney, a title company should be consulted to determine whether the company will insure the title based on the existing Durable Power of Attorney. Also, refer to the paragraph on Powers of Attorney, below.

DIVORCES: A person is NOT legally divorced until a court so orders. A person "in the process of divorce" cannot sign the listing agreement alone. The spouse must also sign, regardless of whether the spouse is living on the premises or the couple has a "legal separation." Once divorced, the person may sign alone. However, if the county records continue to show the property in both names, the licensee must secure a copy of that part of the divorce decree which awards the property to the signing spouse for NETTWORK GLOBAL, LLC files.

POWERS-OF-ATTORNEY: A Power-of-Attorney is acceptable for signature on a listing contract. However, not all powers-of-attorney authorize the sale of real estate. A copy of the recorded Power-of-Attorney authorizing the sale of real estate must be secured for the files of NETTWORK GLOBAL, LLC. Section 442.360 RSMo. requires a Power-of-Attorney for the sale of real estate to be recorded.

LOCK BOX PROCEDURES: NETTWORK GLOBAL, LLC, as part of SLAR and SCAR common lock box system, encourages the use of lock boxes on all listings as a safe, secure, efficient tool in marketing property. It is te agent’s responsibility to obtain permission from the owner on each listing before installing a lock box. 

OPEN HOUSE PROCEDURES: The "how-to" of holding open houses, etc., is covered elsewhere in NETTWORK GLOBAL, LLC, training programs and manuals. However, NETTWORK GLOBAL, LLC, must maintain a policy that adequately informs owners of their responsibilities in consenting to open houses. Licensees must strongly recommend to owners that they take common sense precautions with any valuables in the house during the time of the open house. This includes removal of all jewelry boxes, collectibles of value, (sentimental or dollar value), small audio or video equipment or other items that may be of value. Owners should also be informed that their homeowner's insurance company is the responsible party for any losses on an open house. 

As in all other areas, a licensee may not act carelessly or recklessly. If for no other reason, a licensee must be diligent in conducting an open house to maintain good business relations and rapport with the owner.

NETTWORK GLOBAL, LLC, accepts listings and seeks to build an inventory of available merchandise for sale to buyers of homes and investment real estate. It offers the merchandise directly to the public and by cooperating with other licensees, whether they are buyer's agents, subagents or transaction brokers (as per prior policy in this manual).

Listings not only represent "the merchandise on the shelf" but also present a significant area of risk. Statistically, at least two-thirds of all claims filed against real estate licensees involve claims of misrepresentation, fraud and/or breach of fiduciary duty. It is at the listing level that many of these claims originate. As a listing company, it is imperative that NETTWORK GLOBAL, LLC, develop clear policies to reduce the risk of later claims from oversights and exposures at the time of listing.

The following policies apply to all listings taken by NETTWORK GLOBAL, LLC.

TYPES OF LISTINGS: 

In accord with the REALTOR® Code of Ethics, NETTWORK GLOBAL, LLC, urges the exclusive listing of property, unless it is contrary to the best interests of the owner. Open listings may be accepted only with consent of a manager or broker of the company. Net listings are not accepted as such would be a violation of Missouri Real Estate Commission Rules and Regulations. (Section 2250-8.090(4)(F)). A net listing is one in which the owner agrees to let the licensee keep any sale proceeds over a "net" price the owner wants for the property. 

COMMISSION POLICIES: 

For specific terms on commissions and fees, please refer to the Agent Agreement.

1.   Rates and prices charged for services to the public. Examples of areas to consider, depending on the company's selection of brokerage relationships policy and business practice, are:

a.   Charges to sellers for listings.

b.   Charges to buyers for representation.

c.   Charges to owners for leasing.

d.   Charges to clients for consulting.

e.   Charges for any other services it renders.

2.   Compensation offered to subagents.

3.   Compensation offered to buyer's agents.

4.   Compensation offered to transaction brokers.

5.   Compensation offered to the company's licensees.)

OTHER LISTING TERMS: 

MINIMUM SERVICES IN EXCLUSIVE BROKERAGE AGREEMENTS

Missouri license law requires that three services must be provided if a real estate broker desires to enter into an exclusive brokerage agreement with a client. Section 339.780(7) sets out the three minimum services as follows:

 “7. All exclusive brokerage agreements shall specify that the broker, through the broker or through one or more affiliated licensees, shall provide, at a minimum, the following services:

(1)  Accepting delivery of and presenting to the client or customer offers and counteroffers to buy, sell, or lease the client's or customer's property or the property the client or customer seeks to purchase or lease;

(2)  Assisting the client or customer in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and the counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and

(3) Answering the client's or customer's questions relating to the offers, counteroffers, notices, and contingencies.”

DISCLOSURE OF ADVERSE MATERIAL FACTS:

Missouri statutes require the disclosure to any customer all "adverse material facts" known by the licensee. (Note: There is a difference in the duty of a limited agent to also disclose facts which "should have been known" and the duty of a transaction broker to disclose facts of which the transaction broker has actual knowledge. Even though this difference exists in the statute, all licensees should take great care to disclose adverse material facts within the reasonable expertise of the typical real estate licensee. A good rule of thumb is "When in doubt, disclose.") Adverse material facts are defined as facts related to the physical condition of the property not reasonably ascertainable or known to a party which negatively affects the value of the property.

However, the statute also adds a list of the types of facts included in adverse material facts, some of which do not have a connection to the physical condition of the property. These matters include:

1. Environmental hazards affecting the property;

2. Physical condition of the property which adversely affects the value of the property;

3. Material defects in the property;

4. Material defects in the title to the property;

5. Material limitation of the party's ability to perform under the terms of the contract.

SELLER DISCLOSURE STATEMENTS:

Seller Disclosure Statements (also sometimes called "Property Condition Reports") are a detailed statement by the seller of his/her knowledge of the condition and features of the property. NETTWORK GLOBAL, LLC, has a policy of urging the use of seller disclosure statements to clarify and declare the condition of the property at the time of listing. A licensee should request a disclosure statement on every listing. It is in the best interest of the seller to complete a disclosure statement because it can avoid future misunderstandings with a buyer as to what the seller's knowledge of the condition of the property was at time of listing.

In addition, it is a valuable risk management tool for NETTWORK GLOBAL, LLC and assists the company in complying with its obligations to disclose adverse material facts. By the seller making accurate, factual statements as to his/her knowledge of the property, later controversies as to "who said what" can be minimized.

A listing licensee should be careful to keep the seller disclosure statement current. If the information becomes inaccurate because the property's condition has changed, a seller (and licensee!) could have liability for allowing known inaccurate information to be given to buyers.

Some sellers may refuse to sign a seller disclosure statement. In Missouri, there are no state or federal laws, which require a seller to execute such a statement. NETTWORK GLOBAL, LLC, will accept a listing for which a seller refuses to complete a seller disclosure statement. If a seller will not complete a disclosure statement, she/he can be counseled that completion can be a protection for her/him in that a buyer would have difficulty in claiming an oral representation in conflict with a written representation. Also, a seller should be reminded that the vast majority of properties are sold with completed seller disclosure forms. Her/his failure to have such a disclosure form available to buyers could place the property at a competitive disadvantage and bring into question the credibility of the property.

Particular note should be paid to lead based paint disclosures. Federal law requires certain disclosures on properties built prior to 1978 about the hazards of lead based paint and require that the buyer be given the opportunity for inspections for lead based paint. Licensees must strictly comply with the terms of the federal lead based paint disclosure statute and attend training on this topic. Federal penalties for failure to comply with the statute are significant, including fines up to $10,000 per occurrence.

In certain situations, "representatives," such as personal representatives of estates, trustees and corporate owners may not be willing to complete a disclosure statement. In that event, the licensee should have an uncompleted disclosure statement form signed by the representative clearly indicating the lack of personal knowledge by the signer. However, a statement that the person “hasn’t lived in the property” alone is not an absolute indicator that the person has no knowledge of any of the conditions in the property. An owner of investment property likely has knowledge of some conditions on the property because of what was reported to them by tenants. A personal representative of an estate who is the child of the deceased very likely may have some knowledge of the property because of conversations about the property that the deceased parent may have had with the child. Any seller should complete the disclosure statement with any information that they may have, including information given to them by another person.

In completing the disclosure statement, the seller her/himself MUST fill in the form. An NETTWORK GLOBAL, LLC licensee MAY NOT complete the form on behalf of a seller. If a licensee completes the form, much of the benefit of this risk management technique is lost.

In general, the licensee may rely on the statements of the seller. The Missouri brokerage relationships statute states that the licensee owes no duty to conduct an independent inspection of the property for the benefit of the customer and owes no duty to independently verify the accuracy or completeness of any statement made by the client or any independent inspector.

However, a licensee may not ignore suspect items on the seller disclosure statement just because the seller completed it. If a licensee, in his/her reasonable judgment and expertise, suspects that a statement is not accurate, the licensee should seek further information from the seller. An example might be a seller who states that there has been no water in a basement in which there are obvious water stains and cracks. A licensee's best course is to seek further information from the seller as to the exact nature of their statements and then accurately convey this information to any prospective customer, in accord with the obligation to disclose adverse material facts.

In addition, a licensee should pay particular attention to inclusions and exclusions in the sale of the property and verify the seller's intention. For example, if an owner checks off that the master bedroom draperies will not be sold with the house, the licensee should verify that this is the seller's intent and then make clear in any promotional material mentioning draperies that the master bedroom draperies are excluded.

Also, it is very important to make sure the exclusion is expressly specified in the contract. The seller disclosure statement is not usually incorporated into the terms of the contract. Thus, a licensee should not rely on the seller disclosure statement to control the contract but must make sure that the exact understandings of the parties are reflected in the sale contract.

Another example of proper licensee procedure involves using reasonable diligence to observe matters in the seller disclosure statement. If an owner states in the disclosure statement that there has never been any water in the basement and the licensee notices brown water stains in one corner of the basement, the licensee must question the owner about the accuracy of the statement. Again, a licensee may not ignore her/his reasonable, normal, real estate licensee knowledge and information because an owner represents otherwise.

ACCURACY OF LISTING INFORMATION: 

Several "traps" of liability exist in taking a listing. These are covered below. Each NETTWORK GLOBAL, LLC, licensee should take careful note of these hazard areas and be particularly diligent in handling these issues.

ROOM COUNTS: NETTWORK GLOBAL, LLC, licensees must be careful to accurately represent the number of rooms, bedrooms and bathrooms in a property. Generally, questions of whether an area constitutes a room, bedroom or bathroom are resolved by determining whether an appraiser would count the area as such. For example, basement rooms, which are below grade, are not generally considered rooms, bedrooms or bathrooms for appraisal purposes. Another example is that a room normally must have a closet to be considered a bedroom. Also, "walk- through" rooms are not usually considered separate bedrooms. These ambiguous areas can be denoted by a symbol such as a "+" sign after the room count (e.g. 8+ rooms, 4+ bedrooms) or highlighted in remarks for the property or other descriptive information.

ROOM SIZES: The licensee should personally measure each room. DO NOT take room sizes from a former listing company's form. Be cautious about taking room sizes from plans. There may have been construction changes not reflected on the plans. Measure room sizes to feet and inches. (NOTE: Many MLS systems do not allow input of room sizes to feet and inches. In such case, round inches to the nearest foot, e.g., 7 feet 7 inches rounds to 8 feet but 7 feet 5 inches rounds to 7 feet.)

LOT SIZE: Lot size and acreage should only be determined from an accurate survey, the owner's real estate tax bill or the county tax records. The licensee should NOT attempt to measure lot size on her/his own.

TAXES: Taxes should be determined from county tax records or the owner's tax bill. The licensee should not rely on the statements of the owner as to tax amounts.

MODERNIZATION INFORMATION: Often, good selling features about a property are the updates or upgrades made by the owner. In order to accurately advertise these items, NETTWORK GLOBAL, LLC, requires that the owner verify any information given to us before it can be used in any promotional material on the listing.

Items such as "new" roof, "new" air conditioner, "new" furnace, "new" bathroom, "new" kitchen, etc. are misnomers because of the difficulty in defining what "new" means.

Substantiation of the information means the owner must supply NETTWORK GLOBAL, LLC, with receipts, canceled checks or other proof of payment of upgraded or rehabbed items. Once provided, then NETTWORK GLOBAL, LLC, will accurately advertise and promote these good selling features with language like "New roof, 2004","New furnace, 2005","Kitchen remodeled, 2006".

 If it is not possible to substantiate modernized features, they can be advertised or promoted as "Newer" or "Recent", as in "Newer furnace" or "Recently remodeled bathroom".

SIGNATURES: 

Missouri Real Estate Commission Rules and Regulations require written listing agreements signed by "all owners" (Section 2250-8.090(4)(A)(11)). In addition, NETTWORK GLOBAL, LLC, desires that listing agreements be enforceable in every possible situation to ensure that the company and licensee will be paid under the terms of the listing agreement. Because of these factors, licensees must secure listing agreements with the proper signatures before the listing will be promoted or advertised in any way. Licensees should be especially aware in the several situations below.

SPOUSAL SIGNATURES: A spouse must ALWAYS sign a listing agreement unless certain conditions exist, as follows:- we should pay more attention to this as a team. How much attention should we pay for compliance at the Brokerage level?

1. A waiver of marital rights given by the non-signing spouse exists and a copy is provided to NETTWORK GLOBAL, LLC.

2.  A quitclaim deed made to the signing spouse has been executed and recorded by the spouse not signing and a copy is provided to NETTWORK GLOBAL, LLC.

3.  A prenuptial agreement waiving the non-signing spouse's rights exists, a copy of the prenuptial agreement has been given to NETTWORK GLOBAL, LLC, and legal counsel for NETTWORK GLOBAL, LLC, has consulted with a title company to determine the validity of the prenuptial agreement.

Most often, these questions come up when the property is titled only in the "selling" spouse's name and the "non-selling" spouse claims that he/she has no interest in the property. Typical situations are a widowed person who has remarried or a divorced person who has remarried. The spouse not on the title ALWAYS has a marital interest under the Probate Code of the State of Missouri and MUST sign the listing agreement unless one of the three exceptions noted above exists.

PROPERTY IN ESTATE: When property is in an estate, ALL heirs AND spouses must sign. If a Personal Representative (Executor) has been named, it is possible that the Personal Representative has authority to sell the property. The licensee must secure a copy of the part of the will or court decree that empowers the Personal Representative to sell property. The power of sale granted the Personal Representative by a will may not be acceptable to a title company until the time to file a will contest has expired, which is six months after the first publication of notice of Letters of Administration being issued. Management or legal counsel for NETTWORK GLOBAL, LLC will consult with a title company to determine if the power to sell in the will is acceptable.

TRUSTEES: If a property is held by a trust, the trustee will normally be empowered to sell. However, the licensee must secure a copy of the part of the trust which empowers the trustee to sell because some trusts require the signatures of more than one trustee to sell as in the case of an individual and corporate trustee (bank). The trustee's spouse does not sign the listing agreement because the trustee is acting in a representative capacity. 

SELLER INCAPACITATED: If a seller is not mentally competent to sell, a guardian must be appointed by the Probate Court and the guardian must obtain a court order to sell the property. Until such time, the property cannot be sold even if a child, sister, niece, nephew, etc. is also on the title. Also, if a property is jointly owned in this fashion, the spouse of the "second signer" (child, sister, niece, nephew, etc.) must also sign the listing contract. It is possible that a properly drawn Durable Power of Attorney may provide a means to sell this type of property. However, before relying on the Durable Power of Attorney, a title company should be consulted to determine whether the company will insure the title based on the existing Durable Power of Attorney. Also, refer to the paragraph on Powers of Attorney, below.

DIVORCES: A person is NOT legally divorced until a court so orders. A person "in the process of divorce" cannot sign the listing agreement alone. The spouse must also sign, regardless of whether the spouse is living on the premises or the couple has a "legal separation." Once divorced, the person may sign alone. However, if the county records continue to show the property in both names, the licensee must secure a copy of that part of the divorce decree which awards the property to the signing spouse for NETTWORK GLOBAL, LLC files.

POWERS-OF-ATTORNEY: A Power-of-Attorney is acceptable for signature on a listing contract. However, not all powers-of-attorney authorize the sale of real estate. A copy of the recorded Power-of-Attorney authorizing the sale of real estate must be secured for the files of NETTWORK GLOBAL, LLC. Section 442.360 RSMo. requires a Power-of-Attorney for the sale of real estate to be recorded.

LOCK BOX PROCEDURES: NETTWORK GLOBAL, LLC, as part of SLAR and SCAR common lock box system, encourages the use of lock boxes on all listings as a safe, secure, efficient tool in marketing property. It is te agent’s responsibility to obtain permission from the owner on each listing before installing a lock box. 

OPEN HOUSE PROCEDURES: The "how-to" of holding open houses, etc., is covered elsewhere in NETTWORK GLOBAL, LLC, training programs and manuals. However, NETTWORK GLOBAL, LLC, must maintain a policy that adequately informs owners of their responsibilities in consenting to open houses. Licensees must strongly recommend to owners that they take common sense precautions with any valuables in the house during the time of the open house. This includes removal of all jewelry boxes, collectibles of value, (sentimental or dollar value), small audio or video equipment or other items that may be of value. Owners should also be informed that their homeowner's insurance company is the responsible party for any losses on an open house. 

As in all other areas, a licensee may not act carelessly or recklessly. If for no other reason, a licensee must be diligent in conducting an open house to maintain good business relations and rapport with the owner.

NETTWORK GLOBAL, LLC, accepts listings and seeks to build an inventory of available merchandise for sale to buyers of homes and investment real estate. It offers the merchandise directly to the public and by cooperating with other licensees, whether they are buyer's agents, subagents or transaction brokers (as per prior policy in this manual).

Listings not only represent "the merchandise on the shelf" but also present a significant area of risk. Statistically, at least two-thirds of all claims filed against real estate licensees involve claims of misrepresentation, fraud and/or breach of fiduciary duty. It is at the listing level that many of these claims originate. As a listing company, it is imperative that NETTWORK GLOBAL, LLC, develop clear policies to reduce the risk of later claims from oversights and exposures at the time of listing.

The following policies apply to all listings taken by NETTWORK GLOBAL, LLC.

TYPES OF LISTINGS: 

In accord with the REALTOR® Code of Ethics, NETTWORK GLOBAL, LLC, urges the exclusive listing of property, unless it is contrary to the best interests of the owner. Open listings may be accepted only with consent of a manager or broker of the company. Net listings are not accepted as such would be a violation of Missouri Real Estate Commission Rules and Regulations. (Section 2250-8.090(4)(F)). A net listing is one in which the owner agrees to let the licensee keep any sale proceeds over a "net" price the owner wants for the property. 

COMMISSION POLICIES: 

For specific terms on commissions and fees, please refer to the Agent Agreement.

1.   Rates and prices charged for services to the public. Examples of areas to consider, depending on the company's selection of brokerage relationships policy and business practice, are:

a.   Charges to sellers for listings.

b.   Charges to buyers for representation.

c.   Charges to owners for leasing.

d.   Charges to clients for consulting.

e.   Charges for any other services it renders.

2.   Compensation offered to subagents.

3.   Compensation offered to buyer's agents.

4.   Compensation offered to transaction brokers.

5.   Compensation offered to the company's licensees.)

OTHER LISTING TERMS: 

MINIMUM SERVICES IN EXCLUSIVE BROKERAGE AGREEMENTS

Missouri license law requires that three services must be provided if a real estate broker desires to enter into an exclusive brokerage agreement with a client. Section 339.780(7) sets out the three minimum services as follows:

 “7. All exclusive brokerage agreements shall specify that the broker, through the broker or through one or more affiliated licensees, shall provide, at a minimum, the following services:

(1)  Accepting delivery of and presenting to the client or customer offers and counteroffers to buy, sell, or lease the client's or customer's property or the property the client or customer seeks to purchase or lease;

(2)  Assisting the client or customer in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and the counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and

(3) Answering the client's or customer's questions relating to the offers, counteroffers, notices, and contingencies.”

DISCLOSURE OF ADVERSE MATERIAL FACTS:

Missouri statutes require the disclosure to any customer all "adverse material facts" known by the licensee. (Note: There is a difference in the duty of a limited agent to also disclose facts which "should have been known" and the duty of a transaction broker to disclose facts of which the transaction broker has actual knowledge. Even though this difference exists in the statute, all licensees should take great care to disclose adverse material facts within the reasonable expertise of the typical real estate licensee. A good rule of thumb is "When in doubt, disclose.") Adverse material facts are defined as facts related to the physical condition of the property not reasonably ascertainable or known to a party which negatively affects the value of the property.

However, the statute also adds a list of the types of facts included in adverse material facts, some of which do not have a connection to the physical condition of the property. These matters include:

1. Environmental hazards affecting the property;

2. Physical condition of the property which adversely affects the value of the property;

3. Material defects in the property;

4. Material defects in the title to the property;

5. Material limitation of the party's ability to perform under the terms of the contract.

SELLER DISCLOSURE STATEMENTS:

Seller Disclosure Statements (also sometimes called "Property Condition Reports") are a detailed statement by the seller of his/her knowledge of the condition and features of the property. NETTWORK GLOBAL, LLC, has a policy of urging the use of seller disclosure statements to clarify and declare the condition of the property at the time of listing. A licensee should request a disclosure statement on every listing. It is in the best interest of the seller to complete a disclosure statement because it can avoid future misunderstandings with a buyer as to what the seller's knowledge of the condition of the property was at time of listing.

In addition, it is a valuable risk management tool for NETTWORK GLOBAL, LLC and assists the company in complying with its obligations to disclose adverse material facts. By the seller making accurate, factual statements as to his/her knowledge of the property, later controversies as to "who said what" can be minimized.

A listing licensee should be careful to keep the seller disclosure statement current. If the information becomes inaccurate because the property's condition has changed, a seller (and licensee!) could have liability for allowing known inaccurate information to be given to buyers.

Some sellers may refuse to sign a seller disclosure statement. In Missouri, there are no state or federal laws, which require a seller to execute such a statement. NETTWORK GLOBAL, LLC, will accept a listing for which a seller refuses to complete a seller disclosure statement. If a seller will not complete a disclosure statement, she/he can be counseled that completion can be a protection for her/him in that a buyer would have difficulty in claiming an oral representation in conflict with a written representation. Also, a seller should be reminded that the vast majority of properties are sold with completed seller disclosure forms. Her/his failure to have such a disclosure form available to buyers could place the property at a competitive disadvantage and bring into question the credibility of the property.

Particular note should be paid to lead based paint disclosures. Federal law requires certain disclosures on properties built prior to 1978 about the hazards of lead based paint and require that the buyer be given the opportunity for inspections for lead based paint. Licensees must strictly comply with the terms of the federal lead based paint disclosure statute and attend training on this topic. Federal penalties for failure to comply with the statute are significant, including fines up to $10,000 per occurrence.

In certain situations, "representatives," such as personal representatives of estates, trustees and corporate owners may not be willing to complete a disclosure statement. In that event, the licensee should have an uncompleted disclosure statement form signed by the representative clearly indicating the lack of personal knowledge by the signer. However, a statement that the person “hasn’t lived in the property” alone is not an absolute indicator that the person has no knowledge of any of the conditions in the property. An owner of investment property likely has knowledge of some conditions on the property because of what was reported to them by tenants. A personal representative of an estate who is the child of the deceased very likely may have some knowledge of the property because of conversations about the property that the deceased parent may have had with the child. Any seller should complete the disclosure statement with any information that they may have, including information given to them by another person.

In completing the disclosure statement, the seller her/himself MUST fill in the form. An NETTWORK GLOBAL, LLC licensee MAY NOT complete the form on behalf of a seller. If a licensee completes the form, much of the benefit of this risk management technique is lost.

In general, the licensee may rely on the statements of the seller. The Missouri brokerage relationships statute states that the licensee owes no duty to conduct an independent inspection of the property for the benefit of the customer and owes no duty to independently verify the accuracy or completeness of any statement made by the client or any independent inspector.

However, a licensee may not ignore suspect items on the seller disclosure statement just because the seller completed it. If a licensee, in his/her reasonable judgment and expertise, suspects that a statement is not accurate, the licensee should seek further information from the seller. An example might be a seller who states that there has been no water in a basement in which there are obvious water stains and cracks. A licensee's best course is to seek further information from the seller as to the exact nature of their statements and then accurately convey this information to any prospective customer, in accord with the obligation to disclose adverse material facts.

In addition, a licensee should pay particular attention to inclusions and exclusions in the sale of the property and verify the seller's intention. For example, if an owner checks off that the master bedroom draperies will not be sold with the house, the licensee should verify that this is the seller's intent and then make clear in any promotional material mentioning draperies that the master bedroom draperies are excluded.

Also, it is very important to make sure the exclusion is expressly specified in the contract. The seller disclosure statement is not usually incorporated into the terms of the contract. Thus, a licensee should not rely on the seller disclosure statement to control the contract but must make sure that the exact understandings of the parties are reflected in the sale contract.

Another example of proper licensee procedure involves using reasonable diligence to observe matters in the seller disclosure statement. If an owner states in the disclosure statement that there has never been any water in the basement and the licensee notices brown water stains in one corner of the basement, the licensee must question the owner about the accuracy of the statement. Again, a licensee may not ignore her/his reasonable, normal, real estate licensee knowledge and information because an owner represents otherwise.

ACCURACY OF LISTING INFORMATION: 

Several "traps" of liability exist in taking a listing. These are covered below. Each NETTWORK GLOBAL, LLC, licensee should take careful note of these hazard areas and be particularly diligent in handling these issues.

ROOM COUNTS: NETTWORK GLOBAL, LLC, licensees must be careful to accurately represent the number of rooms, bedrooms and bathrooms in a property. Generally, questions of whether an area constitutes a room, bedroom or bathroom are resolved by determining whether an appraiser would count the area as such. For example, basement rooms, which are below grade, are not generally considered rooms, bedrooms or bathrooms for appraisal purposes. Another example is that a room normally must have a closet to be considered a bedroom. Also, "walk- through" rooms are not usually considered separate bedrooms. These ambiguous areas can be denoted by a symbol such as a "+" sign after the room count (e.g. 8+ rooms, 4+ bedrooms) or highlighted in remarks for the property or other descriptive information.

ROOM SIZES: The licensee should personally measure each room. DO NOT take room sizes from a former listing company's form. Be cautious about taking room sizes from plans. There may have been construction changes not reflected on the plans. Measure room sizes to feet and inches. (NOTE: Many MLS systems do not allow input of room sizes to feet and inches. In such case, round inches to the nearest foot, e.g., 7 feet 7 inches rounds to 8 feet but 7 feet 5 inches rounds to 7 feet.)

LOT SIZE: Lot size and acreage should only be determined from an accurate survey, the owner's real estate tax bill or the county tax records. The licensee should NOT attempt to measure lot size on her/his own.

TAXES: Taxes should be determined from county tax records or the owner's tax bill. The licensee should not rely on the statements of the owner as to tax amounts.

MODERNIZATION INFORMATION: Often, good selling features about a property are the updates or upgrades made by the owner. In order to accurately advertise these items, NETTWORK GLOBAL, LLC, requires that the owner verify any information given to us before it can be used in any promotional material on the listing.

Items such as "new" roof, "new" air conditioner, "new" furnace, "new" bathroom, "new" kitchen, etc. are misnomers because of the difficulty in defining what "new" means.

Substantiation of the information means the owner must supply NETTWORK GLOBAL, LLC, with receipts, canceled checks or other proof of payment of upgraded or rehabbed items. Once provided, then NETTWORK GLOBAL, LLC, will accurately advertise and promote these good selling features with language like "New roof, 2004","New furnace, 2005","Kitchen remodeled, 2006".

 If it is not possible to substantiate modernized features, they can be advertised or promoted as "Newer" or "Recent", as in "Newer furnace" or "Recently remodeled bathroom".

SIGNATURES: 

Missouri Real Estate Commission Rules and Regulations require written listing agreements signed by "all owners" (Section 2250-8.090(4)(A)(11)). In addition, NETTWORK GLOBAL, LLC, desires that listing agreements be enforceable in every possible situation to ensure that the company and licensee will be paid under the terms of the listing agreement. Because of these factors, licensees must secure listing agreements with the proper signatures before the listing will be promoted or advertised in any way. Licensees should be especially aware in the several situations below.

SPOUSAL SIGNATURES: A spouse must ALWAYS sign a listing agreement unless certain conditions exist, as follows:- we should pay more attention to this as a team. How much attention should we pay for compliance at the Brokerage level?

1. A waiver of marital rights given by the non-signing spouse exists and a copy is provided to NETTWORK GLOBAL, LLC.

2.  A quitclaim deed made to the signing spouse has been executed and recorded by the spouse not signing and a copy is provided to NETTWORK GLOBAL, LLC.

3.  A prenuptial agreement waiving the non-signing spouse's rights exists, a copy of the prenuptial agreement has been given to NETTWORK GLOBAL, LLC, and legal counsel for NETTWORK GLOBAL, LLC, has consulted with a title company to determine the validity of the prenuptial agreement.

Most often, these questions come up when the property is titled only in the "selling" spouse's name and the "non-selling" spouse claims that he/she has no interest in the property. Typical situations are a widowed person who has remarried or a divorced person who has remarried. The spouse not on the title ALWAYS has a marital interest under the Probate Code of the State of Missouri and MUST sign the listing agreement unless one of the three exceptions noted above exists.

PROPERTY IN ESTATE: When property is in an estate, ALL heirs AND spouses must sign. If a Personal Representative (Executor) has been named, it is possible that the Personal Representative has authority to sell the property. The licensee must secure a copy of the part of the will or court decree that empowers the Personal Representative to sell property. The power of sale granted the Personal Representative by a will may not be acceptable to a title company until the time to file a will contest has expired, which is six months after the first publication of notice of Letters of Administration being issued. Management or legal counsel for NETTWORK GLOBAL, LLC will consult with a title company to determine if the power to sell in the will is acceptable.

TRUSTEES: If a property is held by a trust, the trustee will normally be empowered to sell. However, the licensee must secure a copy of the part of the trust which empowers the trustee to sell because some trusts require the signatures of more than one trustee to sell as in the case of an individual and corporate trustee (bank). The trustee's spouse does not sign the listing agreement because the trustee is acting in a representative capacity. 

SELLER INCAPACITATED: If a seller is not mentally competent to sell, a guardian must be appointed by the Probate Court and the guardian must obtain a court order to sell the property. Until such time, the property cannot be sold even if a child, sister, niece, nephew, etc. is also on the title. Also, if a property is jointly owned in this fashion, the spouse of the "second signer" (child, sister, niece, nephew, etc.) must also sign the listing contract. It is possible that a properly drawn Durable Power of Attorney may provide a means to sell this type of property. However, before relying on the Durable Power of Attorney, a title company should be consulted to determine whether the company will insure the title based on the existing Durable Power of Attorney. Also, refer to the paragraph on Powers of Attorney, below.

DIVORCES: A person is NOT legally divorced until a court so orders. A person "in the process of divorce" cannot sign the listing agreement alone. The spouse must also sign, regardless of whether the spouse is living on the premises or the couple has a "legal separation." Once divorced, the person may sign alone. However, if the county records continue to show the property in both names, the licensee must secure a copy of that part of the divorce decree which awards the property to the signing spouse for NETTWORK GLOBAL, LLC files.

POWERS-OF-ATTORNEY: A Power-of-Attorney is acceptable for signature on a listing contract. However, not all powers-of-attorney authorize the sale of real estate. A copy of the recorded Power-of-Attorney authorizing the sale of real estate must be secured for the files of NETTWORK GLOBAL, LLC. Section 442.360 RSMo. requires a Power-of-Attorney for the sale of real estate to be recorded.

LOCK BOX PROCEDURES: NETTWORK GLOBAL, LLC, as part of SLAR and SCAR common lock box system, encourages the use of lock boxes on all listings as a safe, secure, efficient tool in marketing property. It is te agent’s responsibility to obtain permission from the owner on each listing before installing a lock box. 

OPEN HOUSE PROCEDURES: The "how-to" of holding open houses, etc., is covered elsewhere in NETTWORK GLOBAL, LLC, training programs and manuals. However, NETTWORK GLOBAL, LLC, must maintain a policy that adequately informs owners of their responsibilities in consenting to open houses. Licensees must strongly recommend to owners that they take common sense precautions with any valuables in the house during the time of the open house. This includes removal of all jewelry boxes, collectibles of value, (sentimental or dollar value), small audio or video equipment or other items that may be of value. Owners should also be informed that their homeowner's insurance company is the responsible party for any losses on an open house. 

As in all other areas, a licensee may not act carelessly or recklessly. If for no other reason, a licensee must be diligent in conducting an open house to maintain good business relations and rapport with the owner.

Real estate transactions can be affected by the lack of availability and/or unaffordability of insurance to cover the property that is being bought or sold. In the past, securing property insurance was considered routine. It was not unusual to call the insurance agent a few days or a week before closing and have the insurance issued with little more than that phone call.

1. Today, the property insurance environment has dramatically changed and continues to do so. The Company strongly urges buyers to address the property insurance issues seriously and early in the transaction process. Here are some important tips for buyers to consider about this new insurance environment:

2. Don't wait to secure insurance. As soon as the offer is accepted, have the buyer call their insurance agent and arrange for coverage. If the buyer is shopping around, the buyer should try to pick an insurance company/agent before writing an offer. Then, when the offer is accepted, they will know who to call. If the buyer has not picked an insurance company or agent by the time the offer is accepted, have them do it immediately after the offer is accepted.

3.  Consider using an "insurability" contingency in the offer. If the Association contract form does not include an insurance contingency, the Company has a standard insurance contingency rider available to include with the offer.

4.  Even if property insurance is available, it may be significantly more expensive than in the past. Property insurance premiums have risen substantially overall in the recent past. Buyers with low insurance scores may also be required to pay higher premiums to secure property insurance.

SALE CONTRACT COMPLETION: 

As a member of the St. Louis Association of Realtors and St. Charles Association of Realtors, NETTWORK GLOBAL, LLC, uses the standard contract form available through the Board. Missouri Real Estate Commission Rules and Regulations (Section 250-8.140), Missouri Supreme Court decision Hulse v. Criger, 247 S.W.2d 855 (Mo.banc 1952) and Article 13 of the REALTOR Code of Ethics govern a licensee's conduct in this respect.

NETTWORK GLOBAL, LLC, adheres strictly to these provisions. Accordingly, a sample sale contract formbook is available to all licensees of the company. Licensees must use the approved language and fill-ins included in the sample contract book. If a situation is not covered, a licensee is not authorized to alter a form or add language without prior approval from company legal counsel that can be obtained through company management. Company management maintains a file of pre-approved clauses for situations not covered by the forms book.

Likewise, any amendments or supplements to sale contracts must be written on available Supplement or Amendment to Sale Contract forms. These forms provide for most typical amendments and changes to sale contracts such as changes to closing dates, possession dates, loan commitment dates, loan terms, waivers of financing, building, structural or mechanical inspections, etc. If a licensee requires unusual language, she/he must consult company management who will consult with legal counsel to determine whether the appropriate language can be approved.

Missouri Real Estate Commission Rules and Regulations are specific as to the types of standard forms that can be used by a licensee. The rule specifies contracts, brokerage relationships disclosures, property management agreements, listing agreements, warranty deeds, quit claim deeds, trust deeds, notes, security instruments and leases, prepared or approved by the company's counsel or by counsel for a trade association of which the broker is a member, or by a Missouri state or local bar association. Even though the rule states that this list is "not limited to" these items, NETTWORK GLOBAL, LLC, takes a conservative position as to any documents not on the list.

Accordingly, NETTWORK GLOBAL, LLC, does not have and will not have forms not on the list, such as power of attorney forms and waiver of marital rights forms. The company believes that this type of document is too "open-ended" in effect and requires giving advice and counsel which by its nature likely ventures into the arena of giving legal advice. If a customer or client asks us to prepare one of these forms, the licensee should ask the customer or client to seek the advice of her/his own legal counsel.

SALE CONTRACT TERMS: 

Several areas of contract terms are traps of risk for the unsuspecting licensee. NETTWORK GLOBAL, LLC, maintains policies regarding these areas to reduce risk and heighten awareness. These are covered below.

EARNEST MONEY: 

The policy of NETTWORK GLOBAL, LLC, is that all Earnest money is to be submitted directly to the Title Company. 

Several concerns regarding earnest money are involved. First is the "how much" issue. The company cannot maintain a policy that requires any specific amount of earnest money, as the company and licensee are not parties to the contract. However, if the company represents the seller, the advice to the seller will be that sufficient earnest money is very important in that it shows how "earnest" a buyer is. The company has seen many cases where low earnest money has resulted in a buyer simply defaulting on the contract and forfeiting the low amount of earnest money, banking on the fact that it is unlikely that a seller would sue. It has also seen many cases where sufficient earnest money (4-7% of the offer price or more) has kept an anxious buyer in a contract to closing because of the prospect of losing a substantial amount of earnest money.

If the company represents the buyer, the classic approach to buyer representation might suggest providing the lowest possible earnest money in every case. However, the buyer's agent is cautioned that this may not serve the best interests of the buyer in all cases. For example, because earnest money indicates how "earnest" a buyer is, or how "strong" an offer is, a buyer may be put at a competitive disadvantage if low earnest money is offered in a situation where the buyer's offer is competing with one or more other offers. As in all other situations, if the company represents the buyer, its job is to give the buyer the best of the agent's and company's expertise, advice and talent that may include advice that on first impression does not follow the "typical" rules.

A second earnest money issue deals with what can be accepted as earnest money. Missouri Real Estate Commission Rules and Regulations (Section 2250-8.130) require that only negotiable items, usually meaning cash or cash equivalents, be accepted as earnest money unless agreed by the seller in writing.

INCLUSIONS AND EXCLUSIONS: 

As covered in the section on Seller Disclosure Statements, the contract is the primary method to determine what is being sold with the property. Do not rely on the Seller Disclosure Statement as to the inclusions and exclusions in a contract. It is not normally made a part of the contract.

This area is of great importance for risk management purposes. Personal property inclusions and exclusions cause a great number of the disputes in a sale contract and can be expensive for an unwary licensee. As a general rule, try to keep the contract free from personal property matters. Not only do these matters "clutter" the real estate aspects of the transaction, but also they may affect the maximum loan amount depending on the loan-to-value ratio.

Some common problem areas the company is familiar with are as follows:

1. Loose laid carpet that resembles tacked down carpeting.

2. Draperies, curtains, window treatments, etc., especially as to which may be excluded (e.g. master bedroom draperies which match the bedspreads).

3. Stoves/ranges (check contract for inclusion in printed matter)

4. Portable dishwasher

5. Refrigerator (Even if built-in.)

6. Alarm system (Determine whether leased or owned and whether any continuing service fees apply.)

7. Swimming pool equipment and pool equipment.

8. Porch swing

9. Bathroom mirrors

10. Farm equipment

11. Riding lawn mower

12. Fireplace equipment and/or screen

13. Gas lights or BBQ's (Be sure to check whether these are paid off.)

14. Above ground pool

15. Hot tub or spa

16. Swag lights

17. Book shelves (Watch shelves where brackets are attached and wood shelves are not.)

18. Special showerheads

19. Playhouse/tree house

20. Special or ornate door knockers

21. Water softener (Check whether leased or owned.)

22. Central vacuum equipment (hoses, nozzles, etc.)

23. Stained glass (Even though usually attached, can sometimes have sentimental value to seller who intends to remove.)

24. LP gas tanks (Check whether leased or owned.)

25. Fireplace logs

26. Ben Franklin stove

27. Fireplace inserts (May or may not be attached.)

28. Satellite dish and converter boxes/unit.

29. Under counter appliances (Microwave, coffee maker, can opener, radio)

30. Basketball hoop

31. Garage door opener controls

This list certainly does not address all of the possible problems. For example, the company is also aware of a seller who removed a flagstone walk that was obviously attached to the property. Be aware of the potential hazards in this area and act with caution, making sure inclusions and exclusions are clear in the contract. Licensees are cautioned not to use simple statements in the address section of the contracts stating "per MLS sheet" or "per MLS #XXXX." These create confusion as to what MLS sheet and when the MLS sheet was run. 

"AS-IS" CONTRACTS: 

Often, listings may be offered in "as-is" condition. This term is unclear, at best. The policy of NETTWORK GLOBAL, LLC, is to clarify the meaning of this term so that the parties have a clearer understanding of the intentions of the other.

Accordingly, a form is available in each office that the licensee should use in any "as-is" contract. The parties must initial one of the three options and sign the form. The three options are explained below.

1. The property is sold exactly as seen. Any building, mechanical or structural inspection is waived by the buyer. The seller will make no repairs or corrections.

2. While the property is being sold "as-is", the buyer is entitled to a building, mechanical or structural inspection to determine status of the property. This option includes a right of the buyer to cancel the contract if the results of the inspections are unsatisfactory.

3. While the contract states the property is being sold "as-is", the buyer is entitled to all rights allowed in the building, mechanical or structural inspection clauses of the contract, including the right to ask for repairs. Typically, this option may be selected if the seller's statement of "as-is" is simply intended to convey the seller's position that it is unlikely the seller will repair any requested items. 

4. In addition, Missouri Real Estate Commission Rules and Regulations (Section 2250- 8.110(6)) are clear that an "as-is" sale does not relieve the licensee of the obligation to disclose material facts and adverse material facts of which he/she has knowledge or which are readily available to him/her relating to the condition of the property.

SALE CONTRACT NEGOTIATION: 

The techniques and principles of sale contract negotiation (the "how-to") are covered in the company's and Board's training programs. Each licensee is encouraged to take full advantage of these resources to improve her/his skill in this area vital to success in this business.

Aside from sale contract negotiation techniques, NETTWORK GLOBAL, LLC, maintains policies that are directed to the legal and ethical aspects of contract negotiation. These are listed below.

PRESENTATION OF OFFERS: 

In accord with the Code of Ethics, the Missouri brokerage relationships statute and Missouri Real Estate Commission Rules and Regulations (Section 2250-8.100), NETTWORK GLOBAL, LLC, require the licensee to present all offers to the seller until closing and all counter offers to the buyer, regardless of how many offers received and regardless of the order in which the offers were received. NETTWORK GLOBAL, LLC, urges any licensee involved in a multiple offer situation to contact management to review the proper procedures.

Whether acting as an agent or transaction broker, the company will always be guided by lawful instructions of the client in any multiple offer situation. While the company believes that the following procedures protect the client, the client may choose to give the company other lawful instructions. The licensee should inform the client, whether seller or buyer, of the customary procedures for handling multiple offers so that the client may determine whether the client wishes to give the licensee or company different instructions.

The Code of Ethics requires that the listing agent, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, divulge the existence of offers on the property. In addition, Standard of Practice 1-15 requires that, when disclosure is authorized, the listing agent has an affirmative obligation to disclose the “source” of the offer, i.e. whether the other offer(s) are from a prospect of the listing licensee, another licensee in the listing licensee’s firm or a cooperating broker.

In the event of multiple offers on one property, NETTWORK GLOBAL, LLC, follows a policy, with the seller’s approval, of notifying all offerors that his/her offer is in competition with other offers as well as giving the opportunity to change the offer.

The seller should be advised that an exception to this policy exists if the seller has a currently effective counter offer in possession of a buyer. In that event, we encourage the seller not give the licensee permission to disclose the competition to the second or later offeror until the seller has had the opportunity to examine the second offer. This gives the seller the ability to determine whether he/she desires to revoke her/his counter offer to the first offeror to negotiate with the second offeror.

The licensee should not reveal any terms of the offer to any other party including expiration time of the offer, price, closing dates, earnest money amounts, financing types, amounts or dates or other terms.

TIMING OF PRESENTATION: 

NETTWORK GLOBAL, LLC, also strongly supports and maintains a policy to present all offers and counter offers as quickly as possible. The REALTOR® Code of Ethics and Missouri Real Estate Commission Rules and Regulations (Section 2250-8.100) provide the standards in this area. The Rules and Regulations use the term "promptly" as to tendering offers and counter offers and the Code states offers must be submitted "as quickly as possible."

The policy of NETTWORK GLOBAL, LLC, is that these terms are to be interpreted to mean "immediately" or "as soon as humanly possible". As an example, a listing licensee's receipt of an offer should immediately generate a telephone call to the owner to determine when the seller is available for presentation of the offer. Once contacted, the seller can then instruct the listing licensee as to when to present the offer. The critical point is that NETTWORK GLOBAL, LLC, believes that the listing licensee MUST make a diligent effort to contact the seller immediately upon receipt of the offer - not an hour later, not when the licensee finishes lunch, not after the licensee shows property.

In the case of buyers, the same principles apply with equal weight. Whether buyer's agent, subagent or transaction broker, these same principles should be followed.

Missouri Real Estate Commission Rules and Regulations and the Code speak to "promptly" tendering any counter offer to the buyer with no reference of client-agent relationship. 

This is an extremely simple yet very important risk management technique. Every NETTWORK GLOBAL, LLC, licensee should consider this of prime importance. The obvious danger in not taking this issue seriously is that the offeror can revoke/withdraw her/his offer at any time prior to a valid acceptance. NETTWORK GLOBAL, LLC, does not want to be in a position of defending an action where an offer was withdrawn before a seller was contacted or diligent efforts to contact the seller were not made.

These issues are common, daily events that the licensee should learn to handle with skill and ease. The licensee's ability to understand and deal with these issues will act as a significant risk management method and contribute to a licensee's successful practice of the real estate business.

The specific procedures for advertising properties with NETTWORK GLOBAL, LLC, are found in the POLICY ON ADVERTISING & DIGITAL MARKETING. Please review that additional supplement as many procedures, such as where and when properties are advertised are subject to change.

NETTWORK GLOBAL, LLC, advocates and encourages the concept of risk management. The strong majority of claims filed against real estate licensees and brokers allege some misrepresentation or fraud. The trend of the law in the real estate industry is for more and more disclosure. Accordingly, NETTWORK GLOBAL, LLC, has the following policies regarding risk management and disclosure.

COMPLIANCE WITH ALL LAWS, RULES AND REGULATIONS:

As a licensee of NETTWORK GLOBAL, LLC, each person assumes the obligation of strict compliance with all laws, rules and regulations which govern real estate licensees in the State of Missouri.

COMPLIANCE WITH THIS POLICY MANUAL: 

As a licensee of NETTWORK GLOBAL, LLC, each person agrees to comply with all policies as stated in this manual and its additions, changes and amendments as from time to time published by the management of the company. Failure to comply with the policies herein subjects the licensee or staff member to disciplinary action that may include termination of association with the company.

PHYSICAL CONDITION OF THE PROPERTY: 

In accord with the REALTOR® Code of Ethics, Missouri Real Estate Commission Rules and Regulations, the Missouri brokerage relationship statute and Missouri common law, the policy of NETTWORK GLOBAL, LLC, is to disclose to all appropriate parties any known material physical conditions or defects of a property and any adverse material facts. This applies whether NETTWORK GLOBAL, LLC, is the listing licensee, subagent, buyer's agent or transaction broker.

Physical conditions on the property may include water in the basement, foundation cracks, drainage problems, defects in any of the major systems of the property (electrical, plumbing, heating, cooling), environmental conditions on or near the property, roof problems, etc.

As previously stated, adverse material facts which are known or which should have been known by the licensee are required to be disclosed. Adverse material facts are defined as facts related to the physical condition of the property not reasonably ascertainable or known to a party that negatively affect the value of the property. Remember that the statute also adds a list of the types of facts included in adverse material facts, some of which do not have a connection to the physical condition of the property. The list includes:

1. Environmental hazards affecting the property;

2. The physical condition of the property which adversely affects the value of the property;

3. Material defects in the property;

4. Material defects in the title to the property;

5. Material limitation of the party's ability to perform under the terms of the contract.

PSYCHOLOGICAL "STIGMAS" ON THE PROPERTY: 

These include whether homicide or other felony, or a suicide occurred on the premises or if an occupant or former occupant of the real property has or had AIDS or any HIV positive condition. The "psychological impact" statute in Missouri that became effective in 1991 provides that no cause of action may be brought against a real estate licensee or broker for failure to disclose to a buyer or other transferee of real property that the real property was a psychologically impacted real property. Although this statute protects a licensee for failure to make a disclosure, it does not prohibit disclosure. Likewise, the Code of Ethics does not require disclosure in situations where state law defines these factors as not material. (As mentioned above, Missouri statutes do provide that these facts are not material.)

The 1988 amendment to the Fair Housing Act includes a person with AIDS, HIV, or other related illness as a handicapped person. The Act likely prohibits a licensee or broker from disclosing that the occupant or the former occupant of a dwelling suffered or suffers from AIDS. Therefore, it is the policy of NETTWORK GLOBAL, LLC, that a licensee should not make an unsolicited comment that the current or former occupant has or had AIDS. Further, if an inquiry is made by the buyer as to whether the occupant has AIDS, the licensee shall not respond to such a question. The licensee should state to the effect "it is the policy of NETTWORK GLOBAL, LLC, not to answer that type of question one way or the other since it is not material and may violate the Fair Housing Act." If the buyer persists, the licensee shall state, "if that information is important to you, you must determine that information yourself."

Because of the practical problems of the inevitable "disclosure" of these factors (often by the neighbors), the policy of NETTWORK GLOBAL, LLC, is to discuss with the seller the inevitability of this disclosure and to recommend disclosure of psychological factors other than AIDS, HIV, or related illnesses that may have an impact on a purchaser's decision to buy. Recent violent crimes or suicides are specific examples of such events. If, after this discussion, the seller instructs the company not to disclose these factors, the licensee should consult company management to determine whether the listing will be accepted.

PROPERTY ON WHICH METHAMPHETAMINE HAS BEEN PRODUCED

The procedures discussed in the previous section about psychologically impacted properties DO NOT apply in the case of a property on which methamphetamine has been produced. While this type of property may appear not to have any physical impact upon it, the characteristics of methamphetamine are such that the drug has serious potential effects on both the physical structure of the property and the ground itself.

Missouri statutes require that the present or past existence of meth labs on any property sold, leased, or transferred must be disclosed, as follows: 

1. Applies to the sale, rental, exchange, lease or any other transfer of real property. 

2. Applies whether the property had a structure on it or not – improved or unimproved property. 

3. Requires that the owner, seller, landlord or other transferor make the disclosure. 

4. Applies if methamphetamine is or was produced on the premises or on the property. 

5. Requires a written disclosure that methamphetamine was produced on the property. 

6. Applies only if the owner, seller, landlord or other transferor has/had knowledge of the prior methamphetamine production. 

7. Disclosure required regardless of whether the persons involved in the production of the methamphetamine were convicted for such production.

Revised Statutes of Missouri, Sections 441.236, 442.606

 441.236. In the event that any premises to be rented, leased, sold, transferred or conveyed is or was used as a site for methamphetamine production, the owner, seller, landlord or other transferor shall disclose in writing to the prospective lessee, purchaser or transferee the fact that methamphetamine was produced on the premises, provided that the owner, seller, landlord or other transferor has knowledge of such prior methamphetamine production. The owner shall disclose any prior knowledge of methamphetamine production, regardless of whether the persons involved in the production were convicted for such production. 

442.606. 1. In the event that any parcel of real property to be sold, exchanged or transferred is or was used as a site for methamphetamine production, the seller or transferor shall disclose in writing to the buyer or transferee the fact that methamphetamine was produced on the premises, provided that the seller or transferor had knowledge of such prior methamphetamine production. The seller or transferor shall disclose any prior knowledge of methamphetamine production, regardless of whether the persons involved in the production were convicted for such production.

The Missouri Association of REALTORS® has a form for the required disclosure.

DOCUMENTATION OF DISCLOSURE: 

As is apparent, NETTWORK GLOBAL, LLC, advocates full disclosure in appropriate circumstances. However, all the disclosure in the world does no good if it cannot be proven. While it would be ideal to have every single disclosure as to every material item disclosed to the parties in writing with their acknowledgment of the disclosure, such is not usually possible.

NETTWORK GLOBAL, LLC, preferred policy is to have just such a written disclosure and acknowledgment as in the case of a Seller Disclosure Statement or Property Condition Report.

Recognizing that this ideal cannot be attained in every situation, the policy of NETTWORK GLOBAL, LLC, is that the licensee should document in his/her own personal notes and files each item that is disclosed in a transaction.

This simple policy can reduce risk and potentially save many thousands of dollars. It assumes that the licensee has a regular, systematized method of organizing and keeping files. This is vitally important to a good documentation procedure. 

While the company does not require a licensee to use any one method, it does provide Broker Sumo for licensees to use in each transaction. Licensees are strongly encouraged to use this organization system, as it has been developed to keep track of details, act as a transaction checklist and risk management method.

Disclosure is great, but documentation of the disclosure is the glue that seals the cracks.

USE OF EXPERTS & "RECOMMENDATIONS": 

NETTWORK GLOBAL, LLC, maintains a strong policy that licensees not go beyond her/his area of expertise regarding a transaction. The company strongly recommends that a licensee advise the use of an expert in situations where appropriate. For example, if questions arise with a buyer about the adequacy of the electrical system, the licensee should advise that a building inspector, engineer or licensed electrician be consulted. 

However, an equally strong policy exists in NOT recommending any particular inspector, engineer, electrician or other expert. While advising that AN expert be used is a good risk management technique, the benefits of this technique are lost if a specific expert is recommended. Recommendation of a specific expert could lead to liability if the expert fails to do her/his job and the licensee was negligent in recommending that person.

The suggestion of NETTWORK GLOBAL, LLC, is to give the names of three experts in each field whenever asked for a recommendation. Do not fall into the trap of responding to a customer/client saying, "Yeah, but which one do you really recommend?" The licensee should be firm in having the customer/client make the choice. 

Some licensees have found a helpful tool in keeping several sample reports from various building/mechanical inspectors, engineers, roofers, etc. When the customer/client asks for a recommendation, the licensee gives the customer/client the samples and suggests that they choose the style and cost of the expert that fits their style and needs the best.

RSMo Section 339.190 provides limited immunity for real estate licensees for statements made by inspectors and certain other professionals. This immunity is provided unless “(1) The statement was made by a person employed by the licensee or the broker with whom the licensee is associated; (2) The person making the statement was selected by and engaged by the licensee; or (3) The licensee knew prior to closing that the statement was false or the licensee acted in reckless disregard as to whether the statement was true or false.

In order to qualify for immunity under this section, the licensee cannot “select” or “engage” the inspector. It is very important that the licensee not recommend a particular inspector as that action could be construed as “selecting” the inspector. Likewise, a related issue is ordering the report. The policy of NETTWORK GLOBAL, LLC, is that the licensee should not order the report if at all possible. If the licensee orders the report (even from the inspector that the buyer selected), it may be construed that the licensee “engaged” the inspector. While the company recognizes that certain situations may appear to require the licensee to place the order, in general, the licensee should have the customer/client place the order. This removes the company and licensee from any involvement in the selection process and reduces the liability of possible negligence in "recommendation" of an expert. In addition, the licensee should not under any circumstances allow the report to be put in the licensee’s name. It should always be addressed to the buyer, preferably at the buyer’s current residence or business address.

TRAINING: 

As stated in other parts of this manual, training and education are integral parts of any risk management and professionalism program. All licensees are expected to participate in the company's initial training program and are strongly encouraged to take advantage of company, board and association education programs.

USE OF LEGAL COUNSEL: 

Whenever a licensee believes she/he requires legal assistance, the broker (sales manager) should be contacted. The company has legal counsel for appropriate legal questions and problems. In addition, the Missouri Association of REALTORS® provides a free Legal Hotline for legal educational information for the designated broker of the company. The earlier a legal question or problem is brought to the attention of management, the earlier the problem can be solved. The company's position is that wisely spent legal fees early in a problem can save many thousands of dollars if a formal complaint or lawsuit arises.

ERRORS AND OMISSIONS INSURANCE:

NETTWORK GLOBAL, LLC, carries errors and omissions insurance in the amount of $1 Million with a deductible of $2,500. All licensees and staff of the company are covered by the policy. The policy is paid by cost sharing. NettWork Global, LLC manages the payment of this policy,

 Errors and omissions insurance generally covers the negligent acts of the insured. It does not cover all possible damages for which the company could be liable. For example, no errors and omissions insurance covers punitive damages. For other exceptions, contact the broker (sales manager) for a copy of the policy.

Errors and omissions insurance does cover defense costs, that is, the legal fees involved in defending a claim against the company or licensee. This is very valuable coverage.

The policy of NETTWORK GLOBAL, LLC, is that each licensee must notify the broker (sales manager) as soon as the licensee is aware of a possible claim against the licensee/broker. "Possible claim" means the potential of a disagreement that could lead to a lawsuit against the company or licensee. Only in this way can the company properly invoke the errors and omissions coverage, if necessary.

COMPLAINT HANDLING PROCEDURES: 

One of the simplest and most cost effective risk management methods is a good complaint handling process. Accordingly, NETTWORK GLOBAL, LLC, establishes the following procedures for handling complaints.

For specific Legal aspects of dispute resolution, please refer to the Nettwork Global Agent Agreement.

1. If the complaint comes to a licensee involved in a transaction, the licensee will be the primary contact person to handle the complaint with whatever management assistance the licensee requires. At a minimum, the licensee should notify the broker (sales manager) of the complaint and the licensee's progress with the complaint.

2. If the complaint comes in without specifying a licensee, the broker (sales manager) will handle the complaint. If a specific management person is requested (such as "I want to speak to the President!"), the person answering the call should courteously direct the call to the requested person, if available, or the broker (sales manager) in the requested person's absence. The caller should ALWAYS be assisted in some way. The person taking the call should not say, "Oh, she isn't here right now." or "You'll have to call him later." or "Please call her office." It is very important to handle an aggravated or upset caller with the utmost courtesy and care.

3. Whoever takes the complaint, the key factor in handling the call is to LISTEN to what the caller's complaint is. The most appropriate and helpful thing the call handler can do is give the person filing the complaint a full and fair airing of her/his grievance. Many times, simple listening to the complaint does much to alleviate the caller's frustration. Sometimes, being listened to is all the person really wants. ACTIVE LISTENING is critical.

4. Usually, the most successful way to handle the initial complaint call is to validate the caller's concerns. In general, it is best not to challenge the caller or become defensive. GET THE FACTS!! Simply try to get all necessary information from the caller's perspective, even if the complaint handler knows it may not be 100% accurate. Remember to document the conversation in writing. Make notes or write a memo about the conversation as soon as possible.

5. Usually, the call can be ended by assuring the caller that the matter will be investigated. The complaint handler should tell the caller what he/she can expect. For example, "Mr. Smith, I would hope you understand that I need to do some research. I will look into the matter, discuss it with Suzie and get back to you by Tuesday." The caller should always be told what the complaint handler will do and by when. THEN DO IT!!

6. The basic risk management techniques in this manual can contribute significantly to the safe and successful practice of the real estate business for NETTWORK GLOBAL, LLC, and each licensee. The company appreciates each licensee's and staff member's enthusiastic endorsement of these concepts. 

The member may consider the following business items for inclusion in an Office Policy Manual. Too many possible variations are possible for appropriate inclusion in the main body of the manual. In addition, these items generally do not impact risk and risk management methods of the company to a significant extent.

Official Documentation

All documentation of compliance, policy and procedure, agent/broker agreement, commission payments can all be found in the Documents section of Broker Sumo. To access this information, login with the email address provided to the broker upon onboarding and click documents on the left menu.

Training Schedule

The training schedule of topics provided by NettWork Global will be announced as soon as possible to allow for as many participants as possible. If changes must occur, NettWork Global will perform its best efforts to notify interested parties as soon as possible.

You will find the most up to date information by subscribing to the calendar at: NettWork Global Calendar

Or visiting our virtual training site: NettWorkGlobalIntranet.com

Updates and Live Zoomed virtual trainings will be posted on the Facebook Group: NettWork Global Agents

Overview

At NettWork Global (the “Brokerage”), we know that online social platforms, including blogs, wikis, message boards, video and photos sharing websites and social networking platforms are constantly transforming the way we interact. We also recognize the importance of the Internet in shaping the public view of our company. The Company is committed to supporting your right to interact responsibly and knowledgeably on the internet through blogging and interaction in social media. We want our members to share and learn from others in order to build a valuable online community. The Agent is responsible for ensuring that all social media engagement conforms to the standards established in the National Association of REALTORS® Code of Ethics. 

The scope of this policy applies to the use of social media in connection with the real estate business. This policy applies regardless of the social media platform being used and regardless of whether the technology used is a company or personal device. This policy shall be observed by all real estate licensees and unlicensed assistants (collectively referred to as “Agents”) affiliated with NettWork Global, (“the Brokerage”). 

This policy is not intended to cover activities that fall completely outside the scope of an Agent’s employment in the real estate business; however, any conduct which reflects adversely upon the Brokerage or the Realtor® organization generally may be reviewed under the terms of this policy. 

As used in this policy, “engaging in social media” means posting or uploading content to any type of interactive electronic communication including but not limited to websites, social networks, blogs, apps, discussion forums, and listservs. 

Because there already exist hundreds of different Social Media tools which may be utilized by agents and more are constantly being created, the provisions of this policy are to be interpreted generally to apply to the types of interaction the agent has with the social media service rather than to specific web sites and providers. Notwithstanding anything in this policy, it remains the responsibility of the Agent to comply with the requirements of local, state and federal law and the Code of Ethics of the National Association of REALTORS®.

In General 

The Brokerage requires professionalism and honesty in social media and other communications. Always strive to be accurate in your communications and remember that your statements have the potential to result in liability for you and the Brokerage. You are responsible for assuring that your online content does not contain false, defamatory, demeaning or degrading statements. 

You are personally responsible for what you communicate on social media. What you publish might be available to be read by the masses (including the Brokerage itself, future employers, and social acquaintances) for a long time. Keep this in mind before you post content. 

Protecting the Brokerage’s Goodwill, Brand, and Business Reputation 

When engaging in social media activity via a personal business account and speaking on an industry-related topic, make it clear that you are speaking on your own behalf. 

Any statement regarding the Brokerage shall clearly disclose your affiliation with the Brokerage. It is important to specifically state that any personal opinions you express may not represent those of the Brokerage. For example, consider such language as "the views in this posting reflect my personal views and do not represent the views of my Brokerage." Use good judgment about what you post and remember that anything you say can reflect on the Brokerage, even if you do include such a disclaimer.

Whenever identification is required by this policy is shall include the following (include those that apply):

1. Name & Logo of brokerage (NettWork Global)

2. Name of broker (Mike B. Nettemeyer)

3. Phone of the brokerage office ((636) 614-5132) or registered DID number.

4. Agents affiliated with a team may also include the name of that team

5. Any other requirements mandated by state law/regulation

You are solely responsible for the content you make available on the web, and it remains your responsibility to stay compliant with local, state and federal law and the Code of Ethics of the National Association of REALTORS®. Agent will hold the Brokerage harmless for any loss or damages arising from any postings made by an Agent via social media in violation of this Social Media Policy. 

Agent is responsible for assuring that the use of the site is consistent with the Code of Ethics, local, state and federal laws and all applicable real estate license laws and regulations, including where necessary identifying Agent.

The following sections of the policy provide general rules for using social media responsibly and safely, in the best interests of the Brokerage. These rules are intended to add to, not contradict, limit, or replace any legal prohibitions or contractual obligations. 

Intellectual Property 

Agents must respect laws regarding copyrights, trademarks, and other third-party rights. You are responsible for assuring that any material (listing photos, articles, artwork, music, etc.) posted to a webpage or MLS does not infringe on another individual’s copyright or trademark. 

• Wherever possible, link to other content elsewhere on the Web instead of republishing. 

• Where appropriate, reference sources of particular information you post or upload and cite them accurately. Plagiarism applies online. 

• Agents must obtain clear authority prior to posting any third party’s content. 

• Agents are responsible for ensuring that he/she is authorized to use photos/audios/videos posted to the site. 

• Agents may not write regarding the listings of other licensees. 

Disclosure 

1. Any and all real estate advertising must comply with the applicable state licensing and advertising laws. All individual licensees and teams must clearly identify themselves as being affiliated with a licensed broker. All rules that apply to traditional print advertising also apply to online advertising. 

2. All advertising must disclose your status as a real estate licensee and include the Brokerage’s name and address or telephone number 

3. Agent is responsible for ensuring that any list of qualifications, credentials or training contained on the site is correct, accurate & not misleading.

4. Agent shall not falsely claim or imply an association with any person or group. 

Posting of text and Advertising listings

1. All text shall be the Agent’s own and not plagiarized or copied from another party without that party’s permission. This shall not prohibit the use of reasonable quotations from the writings of others or writing for which the Agent has received permission to use or using writings consistent with the practices of the site (e.g., retweeting). No content which infringes the rights of any third party may be used.

2. Agent may only write regarding the listings of other licensees within the brokerage with the express written consent of the listing agent.

3. Agent may only write regarding the listings of other brokerages with express written consent of the listing agent.

4. Agent shall assure that writings do not contain unauthorized disclosures of confidential information of clients, customers or REALTOR®

Posting of comments to social media pages of others

1. Any statement regarding the brokerage shall clearly disclose the Agent’s relationship to the brokerage

2. The Agent shall disclose his/her status as a real estate professional as a part of any real estate-related statement

3. Agent may not accept compensation for placing a comment on a site

Posting of photos/audio/video (Flickr, YouTube, etc)

1. Agent is responsible for assuring that that Agent is authorized to use any audio/video posted to the site (to avoid copyright issues)

2. Agent shall secure permission to post for marketing purposes the image of another person on the site

3. If an image, audio, or video has been altered in any way by Agent, the fact that the content is altered shall be disclosed

Fair Housing Compliance 

The law prohibits an Agent from discriminating in any activity related to the sale, rental, financing, insuring, advertising, or terms and conditions related to housing on the basis of race, color, religion, sex, disability, national origin, familial status, marital status, age, or any other protected classification under local ordinance. 

• Agents shall not post content that expresses or implies a preference based upon an individual’s protected class. 

Antitrust 

Agents may not participate in any online activity that could be interpreted as an unreasonable restraint of trade. Comments about commission rates and/or splits may be viewed as an attempt to fix prices. Negative comments about a competitor or a vendor may be viewed as a group boycott. The bottom line is that if you could not say something in a room of competitors, you should not discuss it online. 

Safeguarding Confidential Information 

Agents shall ensure that content posted online does not contain unauthorized disclosures of confidential information of either clients or the Brokerage. Agents shall secure permission to post the image of another person for marketing purposes. 

Vendor Advertising 

No vendor advertising may be posted to either an Agent’s personal business page or the Brokerage business page. Agent shall not pay or receive anything of value in consideration for posting information. In both cases, this includes standalone posts as well as posts made in comment sections. 

RPAC Solicitations/Political Advocacy 

RPAC contributions shall not be solicited in any online public forum. When representing the Brokerage, refrain from expressing your own political views about individual politicians. In the business context, you should represent yourself as a member of the Realtor® party, which supports real property rights regardless of political affiliation.

Page Administrator 

The Brokerage maintains an official business page (“Brokerage Page”) on multiple social media platforms, such as Facebook, so that the Brokerage has a recognizable presence and the ability to communicate with customers and other real estate professionals online. Only a designated representative (“Page Administrator”) of the Brokerage is permitted to create and alter the Brokerage Page. If you are authorized to speak on behalf of the Brokerage, be sure that your posts reflect the Brokerage’s position. 

“Take Down” Policy 

The designated Page Administrator shall monitor all Brokerage Pages and has the authority to remove third-party posts and comments which are deemed inappropriate by the Brokerage. This includes content that may be viewed as vulgar, discriminatory, harassing, or that violates state and/or federal law. Inappropriate posts/comments should be reported to the Page Administrator so that the content may be reviewed.

Agents are solely responsible for monitoring your personal business page(s) for inappropriate third-party posts and comments. This includes tracking and removing content that may be viewed as vulgar, discriminatory, harassing, or that violates state and/or federal law. Understand that if you fail to remove inappropriate posts and comments from your personal business page, you could face liability as a publisher of that content, even if the content was posted by a third party.

TERMS OF USE 

Agents shall be familiar with and comply with the policies and requirements of any social media platform they use as part of their job duties or in the course of their business. Review the Terms of Use of all social media sites you visit and ensure your use complies with those terms. Do not expose yourself or the Brokerage to legal risk by using a social media site in violation of its terms of use. 

The following policies apply to all property listed with NETTWORK GLOBAL, LLC.

1. NETTWORK GLOBAL, LLC, adheres strictly to the Missouri Real Estate Commission Rules and Regulations regarding the definition of advertising. Section 2250-8.070(1) defines advertising as "any communication, whether oral or written, between a licensee ... and the public." 

2. No property will be advertised in any way without a signed written listing agreement on file with the broker (sales manager). The listing agreement in the hands of the licensee is not sufficient. If a listing licensee has a listing he/she wants to advertise, the original or a fax of the original must be in the hands of the broker (sales manager). 

3. One-party listing agreements (also called "one-shots" or "one-time listings") will not be discussed, orally or in writing, with any person outside of NETTWORK GLOBAL, LLC licensees unless a signed one-party listing agreement is obtained. To do otherwise is advertising the property in possible violation of the Rules and Regulations. 

4. A listing that is due to expire by the publication date of a newspaper or magazine ad will not be inserted into the ad unless a written extension of the listing is received by the broker (sales manager) before the deadline for placing the ad. 

5. Similarly, advertising about property posted on the Internet must remain current. A currently effective listing agreement is required at any time a property ad appears on the Internet.

6. No price changes or other substantive changes to the listing will be advertised unless a written change of the price or other appropriate information is received by the broker (sales manager) before the deadline for placing the ad. 

7. Information on features of the property will not be advertised as "new" unless substantiated by written receipts or other evidence of payment from the owner showing the date the work was done. If the verification is received, it will be advertised with the appropriate date. If the verification is not received, the listing licensee must use other words such as "newer" or "recent" to describe the feature.

8. Licensees should take special care to follow these same rules in the use of "special feature" sheets. If a licensee does not follow this policy regarding any information sheets or other documentation/advertising the licensee prepares, the licensee will be solely liable for any errors or omissions that later cause any losses.

9. "For Sale" signs and lock boxes will be removed immediately upon expiration or withdrawal of a listing.

10. According to the REALTOR® Code of Ethics, prior to closing, only the sold sign of the listing broker is allowed on the listing, unless the listing licensee consents otherwise. NETTWORK GLOBAL, LLC policy allows the cooperating broker to post a sold sign with the written permission of the buyer after the closing. Per the Code of Ethics, either the listing broker or the cooperating broker may claim to have sold the property in advertising and representations to the public.

11. Personal advertising by individual licensees is encouraged. Any personal advertising must be approved by the broker (sales manager). Missouri Real Estate Commission Rules and Regulation (Section 2250-8.070(4)) require that any advertising of real estate by the salesperson must include the company name and broker’s telephone number if the salesperson's name and/or telephone number is used. It is the policy of NETTWORK GLOBAL, LLC that this policy covers all types of salesperson advertising, including personal sign riders, business cards, car signs, homes magazine ads, classified ads, direct mail solicitations, specialty items (key chains, pens, pads, etc.), newsletters, farming materials, neighborhood newsletters, billboards, internet advertising etc. This list does not include all possible types of salesperson advertising.

12. Any advertising containing financial terms of the offering must comply with federal Truth-in-Lending laws, also known as Regulation Z. Regulation Z requires that all of the terms of the financing be stated if any of the "triggering terms" are used. "Triggering terms" are terms such as the amount of down payment ("10% down"), the amount of any payment ("Only $550 per month"), the period of repayment ("40 year loan available") or the number of payments ("Only 48 monthly payments).

If any of these terms are used, the following disclosures are required/ 

1. Amount or percentage of down payment.

2. Terms of repayment.

3. Annual Percentage Rate, stated and calculated as such.

Use of any interest rate in advertising is not allowed. Only the Annual Percentage Rate, stated and calculated as such is allowed. Therefore, a property cannot be advertised as having a "7% assumable VA loan."

Not all terms trigger Regulation Z disclosure. Some examples of terms that can be used without triggering Regulation Z disclosure are "No down payment", "Financing Available" or "Special Financing", "Assumable Loan".