POLICIES AND PROCEDURES MANUAL

TABLE OF CONTENTS

GENERAL 4 VISION STATEMENT 5 COMPANY STRUCTURE 6 COMMERCIAL TRANSACTIONS 6 OFFICE FACILITIES 6 GOALS & OBJECTIONS 7 SALES EXECUTIVES JOINING 7 AUTOMOBILES/INSURANCE 8 CELLULAR PHONE USAGE 8 ASSOCIATE TEAMS, PARTNERS, ASSISTANTS 9 SALES EXECUTIVE STANDARDS 10 JOB RESPONSIBILITIES 11 DRESS 12 PERSONAL PROPERTY FOR SALE 12 MANAGEMENT-SALES EXECUTIVE RELATIONSHIP 13 COOPERATION WITH OTHER SALES EXECUTIVES & STAFF 13

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OBTAINING BUYER REPRESENTATION AGREEMENT 13 BUYER AGENCY: SELLING PROCEDURES 14 SELLER AGENCY: LISTING AND MARKETING 15 COOPERATION WITH TRANSACTION BROKERS 16 COOPERATION WITH OTHER BROKERS 17 CLIENT AND PROSPECT RELATIONS 17 CAREER DEVELOPMENT 27 COST SHARING 18 HOME WARRANTY 19 ERRORS & OMISSIONS INSURANCE 19 INSURANCE 19 EXPENSES 19 LONG DISTANCE TELEPHONE CHARGES 19 COMMUNICATION 20 DELIVERIES 20 SALES MEETINGS 20 CLOSED FLOOR 21 ABSENCES / VACATION / TIME OFF 21 LISTINGS 21 LISTING PROCEDURES 22 MULTI – LOCK 24 LISTING FILES 24 CONTRACT PREPARATION 25 CONTRACT PRESENTATION – ACCEPTANCE 26 ESCROW DEPOSIT – RETURN 26 BUYING & SELLING PROPERTY BY SALES EXECUTIVES 27 CLOSING 27 FOLLOW – UP 27 GRIEVANCES, DISPUTES & ARBITRATION 28 WHO MAY OBLIGATE THE BROKER 28 COMMISSION SPLITS 30

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AGENT EXPENSES 30

REGULATORY COMPLIANCE FEE 31 RELOCATION / REFERRAL / CLIENT INCENTIVE PROGRAMS 31 DEDUCTIONS 32 AWARDS, BONUSES, CONTESTS 32 GENERAL OFFICE PROCEDURES 33 JUST LISTED / JUST SOLD POSTCARDS 34 GENERIC OFFICE OPENING / CLOSING PROCEDURES 35 SALES EXECUTIVES TERMINATING 36 BUSINESS CONDUCT POLICY 37 CONTRACT STANDARDS 38 FAIR HOUSING 38 GENERAL EXPENSES 39 UNLAWFUL HARASSMENT 40 COMPLAINT PROCEDURES 41 RISK MANAGEMENT 42 TCPA COMPLIANCE 45

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PREMIUM PROPERTIES REAL ESTATE SERVICES POLICIES & PROCEDURES MANUAL

EFFECTIVE 10/15/15

GENERAL

The purpose of this Policy & Procedure Manual is to set forth basic policy and general guidelines to be followed in the day-to-day operation of the company. It can never be so complete that it will cover every situation, nor can it answer every question about company policies. In any matter not covered in this manual, management will decide and be guided in such decisions by experience, the REALTOR’s ® Code of Ethics, Mid-Florida Regional Multiple Listing System and the Laws and Regulation of the State and Florida Real Estate Commission, all of which are incorporated herein by reference. Management will, from time to time, make additions and revisions that will be announced and published to become effective with reasonable notice.

1st Orlando Real Estate Services also known as Premium Properties Real Estate Services is referred to in this Manual as Broker, REALTOR ®, the Firm, the Company, Management, SRD and the Associates will be referred to as Sales Executives, Associates, Agents or Executives.

We are in business for the purpose of making money. It is our intent that, by working as a team in utilizing our facilities, opportunities and talents effectively, all will share profitably in this venture. However, while making money is the ultimate goal, we must take pride in being professionals and accomplish our objectives in an ethical and highly professional manner.

Defined simply, the word “ETHICS” means moral principles and quality of practice. In the Real Estate business, ethics govern our professional relationship with our prospective buyers and sellers, with our clients and customers, and with our fellow REALTORS ®. Our ethics represent our honesty, integrity and spirit of proper conduct. Each Sales Executive in the Company should read the Code of Ethics set forth by the National Association of REALTORS ® and the codes adopted by our local Association and Multiple Listing Service. It is a must that every Sales Executive lives up to these codes. It is fundamental to say that, to be successful, one must be ethical.

Our company is committed to confirm to all Federal & State Laws including but not limited to discrimination, sexual harassment and fair housing.

All of the company offices are designated “no smoking areas”. Smoking must be done outside of the offices, away from public areas.

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VISION STATEMENT

“The vision of Premium Properties Real Estate Services is to provide all of our customers the best possible service, period!! We are committed to maintaining the level of professionalism, honesty and integrity that is unmatched in our industry from our first contact and for years to come.”

Establish Client / Customer Relationships

We will compassionately answer their needs with superior services as we establish permanent relationships with them in building our market leadership.

Provide Professional Environment

We will provide an open environment that encourages competition and cooperation of the highest professional quality. We will foster participation in establishing the culture of our company and will encourage individual ideas and suggestions to help us attain our vision for our company.

Promote Team Success

We will strive to provide a comfortable and exciting climate in which we will endow our Sales Executives with a sense of team commitment and pride that will be reflected in our professional services.

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PREMIUM PROPERTIES POLICY AND PROCEDURES MANUAL

All Sales Executives are required to read the Policy and Procedures Manual upon joining, initial each page and sign that they have read it and understand same, will follow the policies and procedures therein, and commit to confidentiality of its content. It is the Associate’s responsibility to periodically review the manual for changes, which will be introduced as intra-office memos and inter-office memos and placed in the Addendum Section at the back of the manual. A copy of the policy manual will be available on our website for review.

COMPANY STRUCTURE

The company is organized into tree major divisions. These are:

1) General Real Estate – Resale and New Home Sales

2) Commercial Real Estate

3) Property Management

The General Real Estate Division is responsible for management and operation of all general resale and new home real estate activity. Each office has a Sales Manager, who is responsible for the operation of the Branch. Sales Executives are responsible to their Sales Managers.

The Administrative Division is responsible for the overall administrative operation and support throughout the company.

The Commercial Division is responsible for all commercial real estate related activities such as sales, leasing, site selection, etc.

COMMERCIAL TRANSACTIONS

You may sell commercial property with the assistance of management or with the help of one of our established Commercial Associates. The definition of Commercial includes: Commercial Real Estate, Improved Property, Rental Properties over four units, Investment Property, Vacant Land over 5 acres and Commercial Leases. Only designated Associates can handle Business Opportunities; business of this nature may be referred only. The Residential Associate will receive a referral fee for qualified Commercial leads that result in a closing.

OFFICE FACILITIES

The offices are available on a 7 day basis, 24 hours a day. We encourage you to make full use of these valuable sales tools by meeting prospects or presenting contracts at the offices. All offices are available for all Associates use at all times.

We are proud of our offices and the quality, professional image they project. Please feel free to bring clients and prospects to the offices for conferences, pre-qualifying, mortgage applications or any other business purpose.

Conference rooms are available in each office to provide privacy for you and your clients. When using an office other than your primary office, Sales Executives are asked to respect the staff and policies of that office.

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GOALS & OBJECTIVES

The objective of Premium Properties is to make a profit and for all of our Sales Executives to be successful. In order to be successful, all Sales Executive must be goal oriented and should re-evaluate goals and objectives on a regular basis. The Company will provide the greatest possible opportunity for the economic and personal satisfaction of each Sales Executive. Ultimately, though, the individual Sales Executive success depends on his/her attitude, education, motivation and application of proven skills and systems.

The Real Estate Business as conducted in our Company creates an opportunity to work as a private business person, backed by our resources.

When a Sales Executive first becomes affiliated with the company, it shall be Managements obligation to meet with the Sales Executive to help establish his/her weekly, monthly and long-range goals. Management shall periodically review those goals with the Sales Executive to help review progress and re-adjust goals as may be necessary by use of a “Career Development Checklist”. When a Sales Executive joins the company it is assumed that he or she has made a commitment to utilize all of the resources the company offers in order to become profitable and successful.

It is the responsibility of a new Sales Executive to spend his/her time attending scheduled training sessions, studying the training material, learning and driving the different neighborhoods, contacting friends and relatives, prospecting for and obtaining new listings and getting totally involved in all productive aspects of the real estate business.

SALES EXECUTIVE JOINING

All sales Executives upon joining the company will be given an orientation, which will include familiarization with the company and Premium Properties policies and procedures. It is important that everyone knows about and understands and uses the tools provided by Premium Properties.

Sales Executives new to real estate will receive full training consisting of instruction in all key phases of real estate. Such training is designed to provide easy guidelines and examples to work with, so new Sales Executives will become productive as quickly as possible.

The Orlando Regional REALTORS® Association is the local chapter of our professional organization, the National Association of REALTORS®. In order to further professionalism in your chosen career, each Sales Executive is required to join the Association and to complete the orientation requirements of the Association after becoming affiliated with Premium Properties. This must be accomplished within seven days after joining the Company. Initiation fees, dues, MLS participation fees and lock box key are all paid by the Sales Executive.

It is the responsibility of a new Sales Executive to spend his/her time attending scheduled training sessions, studying the training material, learning and driving the different neighborhoods, contacting friends and relatives, prospecting for and obtaining new listings and getting totally involved in all productive aspects of the real estate business.

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AUTOMOBILES / INSURANCE

Sales Executives shall furnish their own automobile and pay all automotive expenses. Each Sales Executives shall furnish the Manager or Recruiter with a copy of an endorsement to their automobile Liability Insurance policy showing the Company as additionally covered against liability claims and will immediately notify his/her Manager off any changes in the status of the policy. This endorsement will include the company with whom insured, policy dates, type of coverage and limits of liability for personal injury and property damage. Personal liability of $100,000/$300,000 or higher and Property damage liability of $100,000 or higher are necessary. Broker shall be named as “Additional Named Insured” in all automobile liability policies, and a copy of this endorsement provided to Management for inclusion in the individual’s personal file. (Insurance carriers provide this endorsement at no cost, provided the policy already provides the required coverage.) Sales Executives shall have an automobile acceptable to the Broker for their use.

CELLULAR PHONE USAGE

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 and for your clients and for others. Our brokerage 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 just 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.

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

a. Use a hands – free device. 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.

b. Program emergency and frequently called numbers into your phone.

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

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

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e. 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.

f. 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.

g. Don’t try to take notes regarding a conversation.

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

i. 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.

4) Never forget that safe driving is your first priority!

ASSOCIATE TEAMS, PARTNERS AND ASSISTANTS

In instances where two Sales Executives (related or unrelated)work together as a team both contacting sellers and buyers, writing contracts, attending closings, etc, their production will be reflected as fifty percent of their total for each.

Where two members of a family work independently of each other, production for each will be reflected on individual performance.

When a Sales Executive hires an assistant to work with him/her, and the assistant only performs secretarial and other support service to the Sales Executive (does no listing, selling, attend closings, etc), the Sales Executives production will be reflected as his/her own. It is strongly recommended that Assistants be licensed. The activity on unlicensed Assistant can legally accomplish is very limited. Agents must obtain approval from the Company prior to hiring an Assistant. All Assistants must abide by any and all policies published.

FREC GUIDELINES FOR UNLICENSED ASSISTANTS

• Salespeople and brokers are realizing that by hiring unlicensed employees or personal assistants to help with some of the routine tasks involved in real estate transaction, they can increase productivity and free time. But what exactly can an unlicensed personal assistant legally do? FREC has defined some of the activities that may be performed by an unlicensed personal assistant who does not hold a real estate license. The filings are designed to establish guidelines for salespeople who employ unlicensed personal assistants. Here is a list of activities that FREC has ruled may be performed by an unlicensed employee, secretary or assistant:

• Answer the phone and forward calls

• Fill out and submit listings and changes to any multiple listing service

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• Follow up on loan commitments after a contract has been negotiated and generally secure status report on the progress of the loan

• Assemble documents for closing

• Secure documents (public information) from courthouses, utility districts, etc.

• Have keys made for company listings

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

• Receive, record and deposit earnest money, security deposits and advance rents

• Type contract forms and Supreme Court – approved leases (those leases approved by the Supreme Court for use by non-lawyers), for approval by licensee and supervising broker.

• Monitor licenses and personnel files

• Compute commission checks

• Place signs on Property.

• Order items of repair as directed by the licensee

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

• Deliver documents and pick up keys

• Place routine telephone calls regarding late rent payments

• Schedule appointments for licensee to show listed property

• Be present at open houses to provide security, hand out materials/brochures and respond to questions that may be answered with objective responses gleaned from pre-printed objective information

• Gather information for a comparative market analysis (CMA)

• Gather information for an appraisal

• Hand out objective, written information on a listing or rental

• Drive a customer or client to a listing or rental (however, a licensed assistant may not provide access to a listed property for sale or lease.)

• Give a key to a prospect.

Further, FREC ruled:

• An unlicensed individual may not negotiate or agree to any commission split or referral fee on behalf of a licensee.

SALES EXECUTIVE STANDARDS

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EDUCATION AND TRAINING – The quality and professionalism of each Premium Properties Sales Executive is enhanced through a comprehensive program of continuing education and training. We encourage each Sales Executive to take advantage of all educational opportunities and to far exceed the continuing educational requirements for license renewals. For newly licensed agents, Power Start training is required and must be completed within 60 days of licensing with us. If you miss one or more modules in Power Start in the first month of training you may make it up in the following month cycle of classes. If the new agent does not complete all modules by the end of the second training cycle, he or she will be terminated from employment with Premium Properties.

The Company’s Training provides a quick start for new and underachieving-experienced Sales Executives and a positive refresher course for experienced ones, while providing everyone with knowledge of products and services we offer to homebuyers and sellers. This training is second stop, after attainment of one’s real estate salesperson’s license. All Sales Executive are expected to attend the first available Orientation after joining Premium Properties.

The attainment of professional designations not only contributes to the knowledge and professionalism of each of us, but also is one way of gaining respect from other REALTORS ®. The most readily recognized professional designation in the industry are:

G.R I. – Graduate of REALTORS® Institute

C.R.S. – Certified Residential Specialist

FOUR – WAY TEST – We of Premium Properties conduct our lives and business by the Four – Way Test:

Is it the truth?

Is it fair to all concerned?

Will it build goodwill and better business relationships?

Will it be beneficial to all concerned?

We adhere to the CODE OF ETHICS of the National Association of REALTORS®. Each associate is required to be familiar with the Code of Ethics and use these standards to conduct their business.

GOALS AND OBJECTIVES – To be successful in real estate, each Sales Executive needs to establish certain standards of achievement in order to measure or evaluate his/her progress. Levels of professional skill as well as monetary desires are key standards that need to be established and be constantly evaluated. While each Sales Executive has individual needs and desires, the following should be an expected minimum standard as follows:

By the second month after graduation from the Power Start Training each agent is expected to have a listing sold, produce one buyer controlled sale per month or take a six month listing priced within 5% of market value at a minimum. Most Sales Executives will far exceed this minimum goal, and to really be successful in the business should aspire to a much higher goal if minimum standards are not met for an extended period of time, Management at their sole discretion may terminate the Associate.

Continuing Education is essential to improving one’s skill level. An Associate’s annual goal should include enhancing their professional education.

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Therefore, if real estate is to be a profitable venture for you as well as the Company, then each Sales Executive is expected to set an initial minimum earning standard of $20,000 per year and continue to improve his/her skills constantly by attendance of company training, outside seminars and educational sessions.

JOB RESPONSIBILITIES FOR A PREMIUM PROPERTIES SALES EXECUTIVE

The functions associated with listing real estate:

➢ Networking (Relatives, Neighbors, Former Customers & Clients)

➢ Prospecting for sellers/clients

➢ Farming (Systematic, personal and regular contact with a group of potential seller clients)

➢ Personalizing your listing presentation

➢ Advertising

➢ Servicing sellers, including keeping them informed on a weekly basis

➢ Marketing and Promoting Listings

➢ Promoting yourself as a Premium Properties real estate professional

➢ Providing referrals when possible

➢ Contacting For Sale By Owners & Expired Listings

➢ Sending out and following up on Just Listed/Just Sold cards

➢ Representing the best interest on the Seller/clients

The functions associated with selling real estate:

➢ Prospecting for buyers/clients

➢ Qualifying buyer/clients

➢ Counseling the buyer/clients

➢ Representing the best interests of a buyer/client

➢ Writing and negotiating contracts for purchase

➢ Presenting offers to sellers

➢ Processing executed sales contracts

➢ Follow-up to ensure a satisfactory closing

➢ Follow-up to ensure satisfied clients after closing

➢ Proving referrals when possible

The following accomplishments have been found to enhance one’s ability to be a successful real estate processional:

➢ Completion of the training programs

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➢ Membership (mandatory) in the Association of Realtors ®

➢ Establishing and maintaining written goals and objectives

➢ Developing a personal promotion program

➢ Planning daily activities (productive activities first)

➢ Attending all sales meetings on time

➢ Taking part in Association of Realtors ® functions and participating in Association activities

➢ Devoting full-time to being the best REALTOR® in Central Florida

➢ Completing courses leading to RMM, Senior RMM, G.R.I., C.R.S., or other residential real estate designations

DRESS

You never get a second chance to make a first impression! The way we dress helps us convey the impression that a Sales Executives of Premium Properties is a professional. Sales Executives are expected to dress professionally and in good taste when in the office or out listing and selling. (You never know when someone will recognize you as s REALTOR ® and ask you to help them with their real estate needs.)

PERSONAL PROPERTY FOR SALE

Agents licensed with Premium Properties are expected to list their personal property through Premium Properties. (Agents cannot be a FSBO unless otherwise approved by management). When an agent sells his/her own home through Premium Properties, the following criteria apply:

1. No E&O coverage, Indemnification form must be signed and become part of the corporate file.

2. No E&O fee or franchise fee.

3. No administrative fee charged.

4. Agents must disclose their license status to all parties in writing, appearing on the listings and the sales contract.

5. Premium Properties will charge $1000 for only one transaction per year that is bought or sold in the name of Premium Properties. Should the associate terminate their employment with Premium Properties within one year of the closing, they will owe Premium Properties the commission Premium Properties would have been due at a 70/30 split level.

6. Limited to one buyer sale and one seller transaction per year. The property must

be purchased in the agent’s personal name.

While an agent is in their training during their first three transactions that a personal sale will be treated as a regular sale

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and commission will be paid and split as usual. This applies to all new agents (has not sold three houses in the previous 12 months before joining our company) regardless of if they have an assigned Mentor or not.

MANAGEMENT – SALES EXECUTIVE RELATIONSHIP

The relationship of Sales Executives affiliated with Premium Properties is that of Independent Contractors and no employer/employee relationship exists or is to be implied from any title, provision or language used in this or any other document. Sales Executives are reminded that the Managing Broker is responsible for the acts of all affiliated Sales Executives. It is our belief that, if Sales Executives adhere carefully to company policies, the Broker will never have occasion to appear before the Florida Real Estate Commission or the Association’s Professionals Standards Committee in his/her behalf. In this Company, it is policy to stay abreast of real estate trends, financing, sales methods, advertising and advances in technology that will help obtain more prospects and better listings. In turn, it is up to each Sales Executive to devote a full portion of his/her working hours to the business of selling real estate. This should ensure individual success. To the benefit of both the Sales Executive and the Firm, an Independent Contractor Agreement shall be signed by both parties upon joining the company.

QUESTIONS CONCERNING COMPANY POLICY

No appointment is necessary for a Sales Executive to speak with a member of the management team. Do not direct any questions concerning Company policy to anyone other than Management. The Company goes to great lengths to ensure proper understanding of established policy.

COOPERATION WITH OTHER PREMIUM PROPERTIES SALES EXECUTIVES AND STAFF

A Sales Executive associated with our firm has many advantages. Outstanding among these advantages are:

1. A vast pool of knowledge and experience to call upon when needed

2. All members of the Management Team have many years of successful experience, and other members of our Sales Team can provide considerable assistance, if asked. Ours is truly a “team effort” and everyone is a part of “the team”.

3. Complete facilities, sales and research aids and records.

4. A large inventory of salable listings.

5. Outstanding training and career development programs.

Association with a Company such as our own also carries many responsibilities. These responsibilities are covered elsewhere in this Manual, but all Sales Executives are reminded, if real cooperation is expected from fellow Sales Executives, he/she should:

1. Obtain his/her share of listings.

2. Be willing at all times to share information that will enable fellow Sales Executives to consummate a transaction.

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3. Dress properly for appointments an in the office. Image (and the way we present ourselves) is important for success in Real Estate.

4. Do everything possible to promote Premium Properties as a professional Real Estate operation.

OBTAINING THE BUYER REPRESENTATION AGREEMENT

No retainers or buyer’s fee or commission obligations will be permitted. Exception: Premium Properties will enter into commission agreements with buyers if (1) the property is a For Sale By Owner or is “off the market” and the seller refuses to pay the commission, (2) the property is a cash-short sale where payment of a full cash commission by the seller is uncertain or impossible, or (3) the sale is a bankruptcy or probate sale where payment of a commission by the seller would require court approval. If one of these exceptions applies, Sales Manager approval is still necessary before Premium Properties sign any buyer representation form, which could obligate the buyer to pay a commission. The Exclusive Buyer Representation Agreement (Buyer pays commission) form should be used to document the buyer’s commission obligation. Under no circumstance will a retainer or prepaid fee or commission be accepted by Premium Properties or a Sales Executive.

The Sales Executive will create a “buyer file” which will contain the following documents:

a) Signed Buyer Representation Agreement (when possible)

b) Buyers financial information statement or Lender Pre-Approval (optional)

c) All offers and counteroffers whether or not accepted

d) Commission Agreement

e) (For Sale By Owner), if applicable

These documents are in addition to all documents, which are to be kept in the sale file if a contract is signed.

It is suggested that the Sales Executive provide the buyer with several of the Sales Executive’s business cards and that buyer should be advised to immediately give a card to any licensee or builder’s representative in the event buyer visits open houses or otherwise contacts another licensee or seller without Sales Executive being present. Buyer should also be advised not to write any contact offer without first discussing it with the Sales Executive. Buyer should be advised to communicate and negotiate through the Sales Executive whenever possible.

BUYER AGENCY: SELLING PROCEDURES

1. As part of the fiduciary duties and other responsibilities owed to the buyer under buyer agency, the sales executive will do the following prior to offer:

a) Search for all available properties where compensation acceptable to Premium Properties is available. If the company files and MLS do not show a sufficient inventory of properties suitable to the buyer’s needs, the search should expand to include properties not currently in MLS inventory.

b) Prepare a CMA for the buyers review.

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c) Advise the buyer to conduct a reasonably prudent visual examination of the property, interior and exterior. If the sales executive sees any defects or conditions material to the buyer, the sales executive shall point them out to the buyer. (This examination should never be referred to as an “inspection”). The sales executive shall document in writing in the office file (1) any defects that are observed by the sales executive which are not in the seller’s disclosure statement and (2) that the sales executive disclosed those defects to the buyer.

d) Advise the buyer to get a Seller’s Disclosure Statement from the seller or listing sales executive and to review it carefully.

e) Advise the buyer, if possible, to verify all information provided by the seller or listing sales executive, especially the MLS data and any flyer or brochure statements. Even if the buyer asks the sales executives to do so, sales executive shall not attempt or purport to represent or verify square footage, room dimensions, lot size, zoning, variances or use restrictions.

f) Research as reasonably prudent, the market area to determine if there are any conditions, such as environmental matters or road or highway plans, which could affect the value or desirability of the property.

g) Advise the buyer to carefully review the available Contract For Sale and Purchase Form, pointing out matters which are inconsistent with or which fail to cover the buyers stated needs; recommend to the buyer additional terms or addenda which meet the buyers stated needs; tell the buyer that the sales executive is not an attorney and should not be relied upon for legal advice; recommend to the buyer that the buyer first seek the advice of an attorney if the buyer needs advise in order to understand the offer or to have non-standard terms drafted.

h) Advise the buyer in writing of the opportunity for professional inspection and home warranty insurance, and recommend both to the buyer. If either or both are declined by buyer, a signed statement should be obtained.

i) Recommend that the buyer be “pre-approved and not merely “pre-qualified” in order to improve the buyers negotiating position.

j) Disclose to buyer in the Contract for Sale and Purchase the amount of all compensation, including any bonus, payable to Premium Properties or Sales Executive.

2. As part of the fiduciary duties and other responsibilities owed to the buyer, the sales executive will do the following during the pendency of the contract:

a) Assist the buyer and monitor the securing of financing and inspections

b) Promptly deliver to the buyer all inspection reports and advised the buyer to carefully read each of them. If the buyer has questions or needs more information, advise the buyer to seek that information; for example, the buyer may need to contact the original inspector or hire other professionals to provide additional inspections and estimates. The Sales Executive SHALL NOT interpret or give any opinion about the language of the report or the inspector’s findings.

c) Forward to the buyer: surveys, reports, notices, and all other documents on a prompt and timely bases.

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d) Contact the listing sales executive on a periodic basis to confirm the status of any seller-related contingencies and other facts material to the seller’s ability and willingness to a timely close.

e) Promptly notify the buyer of any and all information received which is material to the property, the transaction or the buyer’s interest.

f) Respond to questions honestly and professionally, deferring to the buyer all decisions, and follow the buyers instructions.

3. Generally, the buyer’s agent should encourage the buyer to obtain pre-approval or pre-qualification of loan before presentation of any offer. Pre-approval or pre-qualification may reduce the seller’s possible concerns about the buyer’s ability to close, which should improve the buyers negotiating position.

4. The Sales Executive will, before and during the pendency of the sales contract, timely inform the seller, through the listing sales executive, of all facts material to the buyer’s ability and willingness to timely close. Such material facts could concern loan applications, a change or facts affecting the buyer’s ability to obtain any necessary financing or down payment or buyer-related contingencies.

SELLER AGENCY: LISTING AND MARKETING

1. Listing executive shall not disclose any confidential information with anyone other than office manager or any co-listing Sales Executive, unless required to do so by law or unless the seller consents to disclosure. Listing Executives shall take care that all communications with clients, whether by telephone, fax or mail are done so as to maintain the confidentiality of the communication. Office bulletin boards and sales staff meeting should be treated as public communications, and therefore no confidential information should be divulged in those settings. Therefore posting a pending contact price on a sales board ban only be done with seller’s authorization. In absence of such authorization, only the list price should be posted.

2. Listing Executive shall put the property into the MLS with designation that Premium Properties Real Estate Services will cooperate with buyer’s agents and transaction brokers and indicate the specified compensation for them.

3. If the Listing Executive learns that a buyer is under a current exclusive representation agreement with another broker, NAR’s Code of Ethics requires that the listing executive shall conduct no dealings directly with that buyer unless authorized to do so by the buyer’s agent. The listing executive shall not discuss or attempt to determine whether the buyer has the legal right to disregard his or her agreement with the other broker.

4. Listing Executive should recognize that competitors, when acting as buyer’s agents or transaction brokers, may sometimes fail to volunteer to the listing sales associate material information regarding the buyer’s ability and willingness to close the sale. Prior to the seller entering into any sales contract, or as a condition of the sales contract, the buyer should be directed to provide a letter of credit worthiness and pre-qualification at a minimum. Once the sales contract has been signed, the listing executive will contact the selling licensee on a periodic basis to confirm the status of any loan applications, contingencies and other facts material to the buyer’s ability and willingness to timely close.

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5. The listing executive shall review any sales contract with the seller before it is signed by the seller and shall confirm with the seller that all of the terms of the contract are acceptable to the seller. The listing executive should also make sure that the contract:

a) Identifies the listing broker and sales executive

b) Identifies the selling broker and sales executive and states whether they represent the buyer, the seller, are a transaction broker or are not representing either party.

COOPERATION WITH TRANSACTION BROKERS

When working with a transaction broker, Premium Properties executive should remember that the transaction broker is not an agent for the buyer or the seller. To the transaction broker, the buyer and seller are customers, not clients. The transaction broker has limited fiduciary duties “to both buyer and seller”. The transaction broker must “treat seller and buyer with honesty and fairness” and must disclose all known facts materially affecting the value of the property in residential transaction. The transaction broker’s role must be disclosed in writing to both buyer and seller.

COOPERATION WITH OTHER BROKERS

Premium Properties has the goal of becoming the most respected real estate firm in Central Florida. We want to be a company you are proud to be affiliated with. To gain the respect of fellow REALTORS ®, we must cooperate fully with other REALTORS ® in order to better service the real estate selling and buying public, This, of course, does not mean giving confidential information, but giving factual/general information concerning properties that are available. All of our transaction will be conducted in an honest, ethical manner.

It is our policy to cooperate fully with other REALTORS® that are acting as “Buyers Agents”. We will also cooperate with Transactional Brokers.

- If a property about which you have an inquiry is not listed in the Multiple Listing Service, call the Listing Company and ask whether they will cooperate with other Companies and what the total commission split and co-op fee will be. (Please do this prior to showing properties)

- Clarify commission agreements with “For Sale By Owners” PRIOR TO showing their properties. It is best to do this in writing prior to showing to eliminate any possible misunderstanding.

Ask permission of the Listing Company before showing property. Treat the Listing Company’s sellers with courtesy. When showing property, DO NOT discuss the listing, price or other Brokers or Associates with the owner. Return keys promptly. Whenever borrowing a key from a cooperating office in order to inspect or show a property, try not to keep the key out for over four hours. No matter what inconvenience this causes our Sales Executive, he/she should adhere to this policy. Do not contact owners directly regarding offers. Offers are to be submitted through the Listing Broker/Associate, and not directly to the seller. Unless the Sellers have informed their listing agent or broker, in writing, that they do not want the Buyer’s agent to be present at contract presentation, buyers agents are allowed to present at contract presentation. Never discuss the ethics of another Broker or Agent with anyone other than members of our management team.

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Sales Executives who have complaints against individuals in other firms should refer them to Management at once. Complaints against personnel in other firms should NEVER be discussed with buyers, sellers or other Sales Executives.

CLIENT AND PROSPECT RELATIONS

Premium Properties Real Estate Services Sales Executives must always adhere to the Supreme Court decision of 1966 in the case of Jones vs. Mayer and all Federal, State and local laws and regulations whereby any person, regardless of race, color, religion, sex, handicap, familial status or national origin has the right to choose where he/she wishes to live an homeowners must, in accordance with the decision, agree to show and sell their home to them, if all other conditions are met.

A copy of any written instrument must be given to the client or prospect as soon as possible after it is signed. This is especially important if the document is a contract or agreement.

If is policy for our Sales Executives not to discuss any customer/client Real Estate matters with another Sales Executive or prospect. Personal or business problem of clients should be kept strictly confidential and not discussed with others. Follows the practice of keeping in touch with buyers and sellers after consummation of a transaction. Those former customers/clients may later develop into referral and repeat business. The building of good will should be everyone’s thought and desire.

CAREER DEVELOPMENT

Premium Properties Real Estate Services is committed to professional growth and development of its Sales Executives. Through its Career Development Program, the Company provides a comprehensive program of training, education and development consisting of company in-house training, Greater Orlando Area associations of REALTORS ® training and other specialized training offers.

A partial list of career development opportunities made available by Premium Properties are as follows:

SALES ASSOCIATE TRANING: Hands on production-oriented training with a “Focus on Fundamentals!” Required for new agents…Recommended for experienced/underachieving agents.

CAREER PLANNING ASSISTANCE: In addition to our annual goal planning sessions, each Sales Executive may request a meeting with a member of the management team to review career progression and help in getting “back on track”. A Sales Executive not meeting minimum standards will be placed on a specialized personal program, giving the Sales Executive an opportunity to improve. This specialized program will be monitored by a member of the management team.

REFRESHER TRAINING: Refresher training is offered for all Sales Executives periodically. All Sales Executives are encouraged to take advantage of these training sessions.

COACHING: A weekly coaching call from management is mandatory for all agents that produce less than minimum standards.

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COST SHARING: Premium Properties will pay the following expenses:

➢ Open House signs

➢ Lock Boxes

➢ Virtual Tours

➢ 24 hour telephone service (in office)

➢ Installation and removal of yard arm signs. Other signs are to be installed/removed by Sales Executive. Personal sign–riders are the responsibility of, and expense of the sales executive.

➢ Advertising, as programmed by Management. Personal promotion/advertising are Sales Executive costs. Some other advertising may be cost-shared between Company and Sales Executive provided this expenditure is pre-approved (prior to submission for publication) by Manager. Forms to request “other” advertising are available from the Administration in each office. All advertising must be approved by Management.

➢ 200 Just Listed and Just Sold Postcards (no postage)

➢ MLS System, Tax System and Forms Program access in the offices for use by Sales Executives.

➢ Computer support in the offices for Sales Executives

➢ Reference Materials

➢ Long distance business calls (see section later in this Manual)

➢ Premium Properties brochures and promotional materials, stationary and note cards for use with on-going customers/clients; farms and spheres of influence excluded.

Sales Executives will be asked to pay the following costs:

➢ Orientation fees and membership dues for the Orlando Regionals REALTOR ® and/or the Lake County Association of REALTORS®

➢ Multiple Listing Service participation fees

➢ All yard arm sign riders

➢ Specialized subdivisions “For Sale” signs

➢ Personalized sign riders and “Take One” boxes/info tubes

➢ Mobile Phone

➢ Office Supplies

➢ Fees for educational classes

➢ Supra Keys

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HOME WARRANTY

Premium Properties encourages Sales Executive to urge clients and customers to utilize any Company’s Home Protection coverage. Customers and clients who decline must sign a waiver.

ERRORS & OMISSIONS INSURANCE

Premium Properties Real Estate Service maintains an errors and omissions insurance policy. The policy carries a deductible and has a $1,000,000 limited liability for each claim. The deductible is $5,000. This will be paid by the company if the agent followed policies and procedures and did not commit fraud. If an outside attorney has to be used in the course of the transaction, the attorney fee is split between Premium Properties and agent at the level of the commission split arrangement.

The cost of our E&O/Transaction Fee coverage to the Sales Executive is $165 per transaction. And may be more for agents on higher split levels. This fee is subject to change.

The E&O Insurance carrier will appoint an attorney to handle the case, and will pick up cost after the deductible has been met. Sales Executives are expected to fully cooperate with appointed attorney, answering questions and providing information needed to handle the matter.

Our Errors and Omissions Insurance does not cover Commercial Business Opportunities. Therefore, we do not sell business opportunities unless the business is sold with real property.

INSURANCE

Personal Items in our Office: Sales Executive is responsible for insurance coverage on any personal items he/she has in Company offices. The company insurance policy does not (in fact cannot) cover any personal items! An endorsement covering items to one’s homeowner’s policy may be obtained for a minimal cost.

EXPENSES

Premium Properties Real Estate Services is not responsible for any expense incurred by Sales Executives. SERVICE EXPENSES RELATING TO CLIENTS SHOULD BE ORDERED IN THE CLIENT’S OR AGENT’S NAME, NOT PREMIUM PROPERTIES REAL ESTATE SERVICES. This includes such expenses as termite inspections, roof inspections, surveys, maintenance, appraisals, or professional services, etc. Sales Executives are responsible for payment of any bills so incurred.

LONG DISTANCE TELEPHONE CHARGES

The company provides each Sales Executive with long distance for real estate business calls within the U.S. In bound “800” numbers are not to be given to contacts, friends or relatives for their use in contacting Sales Executives.

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COMMUNICATION

Hand written notes are encouraged for informal communication and add a personal touch to the correspondence.

A copy of any “personal promotion materials” should be cleared with Management before going to print. Also, a copy is to be provided for file in Branch Office.

TELEPHONE-The telephone is a timesaving, effective means of communication and can save you many hours. Remember, however, that in real estate transaction the written word prevails. Protect your clients and yourself after arriving at an agreement over the phone, PUT IT IN WRITNG, by FAX, TEXT or EMAIL. Also, keep adequate record of telephone calls that are not followed-up in writing and retain fax and emails.

The administration will answer incoming calls during normal business hours. All calls for Sales Executives not in the office during regular business hours, caller will be offered the opportunity to place a message on the Sales Executive’s voice mail or we will transfer the call to your cell phone.

All incoming calls and messages should receive a prompt response from Sales Executives. This is an opportunity demonstrates the efficiency, professionalism, and consideration for other people by each of us.

When leaving the office, each Sales Executive should notify the designated Administration person of his/her expected time of return, and if possible, where he or she can be reached.

Please show consideration for others by controlling the length of your telephone conversations and number of personal calls.

The office telephone number is not to be used for classifications or any personal rentals or unlisted property.

DELIVERIES

It is the responsibility of the party accepting and/or signing for a package to notify the correct party immediately of their delivery and to maintain the package in a safe place until it is picked up.

SALES MEETINGS

Sales Meetings are essential to any sales organization and serve as a means to provide better communication amongst all concerned. It is a time to exchange current up-to date information, discuss problem areas, up-date ourselves on the status of listings and sales, receive educational material and generally, just get together and meet with the rest of the team.

Each office will maintain a schedule for office meetings. Occasionally the company holds a “Company-Wide Sales Meeting” at a designated location, usually with a guest speaker or to announce a “special event”.

Changes in meeting times or schedule will be announced. Sales meeting are appointments you have with your office -- so you are encouraged to schedule other business around sales meetings. A good rule to follow is to keep the scheduled mornings open for this meeting.

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Schedule your appointments for times other than meeting times! All Sales Executives are expected to attend sales meetings.

CLOSED FLOOR

Agents will receive any calls that come in on their listings. However, if the agent is not readily available, within a reasonable amount of time or the prospect insists on immediate assistance, the prospect will be referred by the company to another agent.

ABSENCES/VACATION/TIME-OFF

When a Sales Executive is on vacation or absent from the office for more than one day, they should arrange with one of the other Sales Executives to service their listings and buyers, and otherwise take care of business. The Sales Manager is to be advised, prior to departure, the name of the Sales Executive that will be responsible for handling real estate business during the absence. It is recommended that compensation for any time and services be discussed up front.

LISITNGS

Listings are the inventory of the real estate business. The more listings we have, the more inventory we have for sale and the more the phones ring! Each Sales Executive is expected to carry an inventory of saleable listings at all times.

Only Exclusive Right of Sale Listing Agreements will be accepted by Premium Properties. This give Premium Properties the sole right to offer a property for sale. Each listing will be placed in the MLS within 24 hours. Listing contracts will be written for a minimum term of four months or longer unless a shorter period of time is specifically approved by Management.

MARKETING FEES – The firm renders professional services for which we charge a marketing fee. The more professional our services, the more respective our customers will be to paying that fee. The establishment of fixed fees throughout any segment of the real estate industry is not authorized by law. However, each company may establish its own fees with a view toward being competitive in the marketplace while attempting to provide earnings commensurate with the level of professional service it provide.

The following are the Premium Properties fees for our services. Under certain conditions, we may find it advantageous to all concerned to accept a different fee. However, Sales Executives must remember that any variations from the following will require prior approval by Management. If you feel you MUST adjust a fee for what you consider a valid reason, the client needs to be advised that you will need Management’s approval before the adjusted fee is considered valid.

The normal marketing fee to a seller is 6% of the sales price on all residential units up to $400,000.00, 5% over $400,000.00 and 10% for commercial properties, vacant land and income property. In no event will that rate be less than referred above, unless approved by Management. In cases of expensive or new homebuilders, consult with Management for acceptable commission rates.

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LEASE COMMISSIONS – Premium Properties will not accept leases for residential or commercial units, unless specifically pre-approved by Management. Sales Executives are reminded that ONLY attorneys, the Lessor or our Property Management Division are authorized by law to draw up a lease agreement.

PERIOD OF LISTING – Since the average listing in the Association of REALTORS® takes four months or longer to sell, we must obtain listings for at least a minimum of four months. Anything less reduces our chances to recover our investment and will not be accepted without specific Management approval.

COMPETITIVE PRICE/TERMS – Our interest in entering into a listing contract is to sell the property. All listings must be priced no higher than 107.5% of actual market value (as determined by a factually correct competitive market analysis - CMA) to qualify for company paid advertising and promotion. Also, there needs to be an understanding with Sellers that a monthly review of price and terms, if applicable, is necessary. This policy is subject to separate marketing agreement with developer/builder and approved by Management.

ADVERTISING – Company advertising policy will be stated to the Sales Executives periodically. Management may adjust the type and amount of advertising from time to time depending on market conditions.

Under no circumstances will the company (at the company expense) advertise properties who’s Listed Price is more than 107.5% of its value as determined by a factually correct CMA. The CMA is to be prepared by the Sales Executive.

PROTECTION PERIOD – We need at least a 180 day period of coverage after a listing expires to minimize the possibility of a potential buyer and seller working out an arrangement to preclude paying us a commission. In the event an agent has a difficult time with a seller regarding this, the Associate should contact his/her Manager.

EXCLUSIONS TO THE LISTING AGREEMENT – We do not allow exclusions because it creates an exclusive agency agreement. In the event a seller has a party they feel may be interested, give that party 72 hours to make a decision. After 72 hours, they must go through our office to buy. This helps the seller to get the truth from the buyer. All exceptions to this policy must be approved by Management.

WITHDRAWALS – There is a withdrawal cost of $300 to cover both fixed and variable costs incurred by the company. The purpose of this cost is for the protection of all; we cannot allow a seller to withdraw without good and justifiable cause. Any withdrawal, or offer to withdraw at any time, must be cleared with Management before making such a commitment to the seller.

STATUS REPORTING – We have an obligation to sellers to contact them periodically (weekly) to apprise them of any and all activity of which we are aware regarding their property. We expect our Sales Executives to be in touch with all Sellers weekly. Keep a record of all contacts with Seller’s.

OPEN OR NET LISTINGS – It is the policy of Premium Properties not to take or accept open or net. If you have an unusual situation that you would considered, contact your Sales Manager.

MULTIPLE LISTING FEES – The company pays for the single entry of each listing into the multiple listing service (MLS) and in certain instances places the listing in adjacent board/association MLS. Extensions will be a minimum of 30 days, unless specifically approved for a shorter period by Management.

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LISTING PROCEDURES

In order to properly process and service listings professionally, it is necessary that certain procedures be followed to ensure we have the information we need, such as follows.

COMPLETE INFORMATION – All information on the listing forms must be complete and as accurate as we can determine. Items such as Tax ID numbers, taxes, zoning, schools, should be verified as accurate. Do not take information from a previous listing for granted. Legal and payment information should be taken from the deed and mortgage payment book. Measurements are to be actually made. The living area square footage of a home must come from County Tax Records, Certified Appraisal or Builders plans and a copy of the same must be kept in the listing file. Verbal square footage estimates from anyone is not allowed for use in listing property. A copy of the signed listing contract and the descriptive MLS input form (profile sheet) is to be left with the owners when listing is taken. A copy of ALL other forms concerning the listing are to be provided to Sellers within 48 hours after listing is taken.

AGENCY FORMS – Be sure to explain our Agency positon to Sellers prior to getting into the listing forms.

ESTIMATED CLOSING COSTS – Estimated Net Sheets should be completed, assuming the most logical price, showing and preparing the seller for a probable net at closing. It is desirable to use accurate cost figures. Sellers should sign this form indicating acknowledgement. A duplicate copy should be left with them or mailed back with their copy of the listing agreement, one copy should be in the company listing file. Be sure that Seller’s Estimated Proceeds are based on probably SALE PRICE range (High, Medium, Low) never the LIST PRICE!

WARRANTY FORM – Be sure to explain the warranty coverage to sellers and encourage them to place the warranty on their property. Warranties provide a safeguard to seller, Sales Executive and Broker, as well as helping sell homes faster and at higher prices. Warranty coverage declined by Sellers and buyers must be in writing by use of signed “waiver form” and be placed in the appropriate file.

REFRERRAL INFORMATION FORM – A referral information form is to be filled out in every instance.

POCKET LISTINGS – It is not ethical, professional, nor fair to Sellers to hold a listing back for any period of time in order to give you an advantage to sell your own listing. All listings must be turned in promptly. Our local MLS requires that they be input within 24 hours. If not turned in on time, any fines incurred will be absorbed by the Sales Executive.

EXTENSIONS – Sellers should be contacted at least two weeks prior to expiration regarding an extension of the listing agreement. If we are doing our job right and keep in touch, extension can be more easily obtained. MLS must be notified of extension PRIOR TO the expiration date; otherwise it is dropped out of the MLS system and reported as expired. Costs of re-input into a listing which is allowed to expire is charged to the Sales Executive. The minimum period of extension is 30 calendar days unless otherwise approved by management.

LISTING CHANGES – Changes to listings are to be written on a copy of the appropriate listing forms and turned in to the Administrations. DO NOT rely on verbal understandings. The Sellers need not sign items of a descriptive nature of the property. However, any information dealing with price, terms, or length of contract MUST be signed by the Sellers. It is advisable to check individual listing information to assure accuracy.

T ype equation here .

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RE-ASSIGNMENT OF LISTINGS – The broker reserves the right to re-assign a listing to another Sales Executive failure to properly service the listing or lack of interest. All listings are taken in the name of the Company and remain the property of the company. Any unsold listings will be assigned to another Sales Executive a the discretion of Management upon termination of the Sales Executive, and no listing commission will be due to the terminated Sales Executive if a subsequent sale is effected.

KEYS – A key represents a trust placed in you by the owner of the property concerned and it is, therefore, essential we honor that trust by maintaining control of it. Upon taking a listing, ask permission of the owner to have two keys made at your expense.

Whenever a key is removed from the key box, the person’s business card will be placed in the key envelope with time and date of removal indicated. This procedure is to be followed by Premium Properties Sales Executives also. When the key is returned, the card may be returned to the user, or given to the Listing Sales Executive for follow up information. Keys are to be turned over to the new owner at closing or returned to the Seller when a listing expires or is withdrawn. NEVER give keys to a buyer until specifically authorized to do so by the Seller. Remember, we have no authority whatsoever to admit anyone into an Owner’s home without his/her permission, expect for sales people showing the home under conditions specified in the listing contract.

When using a key to enter a home when the Seller is not expected to be there, be sure to ring the doorbell and wait a reasonable amount of time. Then use the key, but upon entering the house, call out to determine again that there is no one home. If a home is entered by the use of a key, be sure to leave your business card in a conspicuous place, noting the time of the day you were there. Any salesperson using a key should, before leaving any property he/she has shown, check all doors and windows to determine that they are securely fastened or locked and that lights turned on are turned off. Possession of keys represents a major responsibility that we have assumed. If the key is in a multi lock box, be sure to return I to the multi lock box.

YARD SIGNS – Signs on listed properties will be installed within 48 hours after listing is turned in (72 hours for “out of market” area listings) and removed by our sign contractor after the sale closes or listing expires. You need only to put up special riders as needed and Sale Pending riders upon a sale. Some subdivisions do not allow us to install the Company sign, but may allow the use of the subdivision designed signs. When a new listing is in one of these areas, please ask your Sales Manager to obtain an appropriate sign. Also, most condo associations do not allow the use of a yardarm sign. Company signage is to comply with local zoning and community restrictions.

MULTI-LOCK

Each Sales Executive should obtain a multi lock keypad from the Association of Realtors®. The control and proper use of the key is your responsibility. Please review the terms of the lease agreement and do not allow anyone to gain access to our use your keypad.

LISTING FILES

The Administration will process a file on each listing immediately upon receipt of a complete listing folder. The file should contain all of the documents originally found in the prepared folder, including but not limited to:

- A current and comprehensive competitive market analysis supporting the listing price. Be sure to turn one in.

- An estimated cost sheet signed by the Sellers

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- Completed MLS listing forms and addendum, if applicable

- A listing checklist

- A seller warranty plan purchase agreement (or signed waiver), if appropriate

- A completed Referral Information form, if appropriate.

Listing files are maintained by the Administration, and are not available to Sales Associate other than during business hours. Under no conditions are listing files to be removed from the offices. Should a Sales Executive need information in a listing file, the file may be briefly checked out the Listing Sales Executive only, and a copy of needed information made. This policy is necessary due to the agency status we incur at times and the liability that could be incurred. It is suggested Listing Sales Executive make a copy of each listing before it is turned in and any of additions/charges made during the listing period and a personal listing file be maintained by Sales Executive.

CONTRACT PREPARATION

A contract for Sale and Purchase is a legal document that may one day have to “stand up” in court. No facet of our business receives more criticism or concern by the legal profession than our contracts. It is essential that the buyer’s full intent, including any and all contingencies, be clearly stated. Also, remember that the sellers require protection from loss of their most valuable asset. Contracts should be drafted on work sheets first to insure correctness of figures, and to assure the use of language that is brief but concise. It is also incumbent on each Sales Executive to be thoroughly familiar with contract forms to preclude writing in conditions that are already covered elsewhere. For Buyers and Sellers to easier understand the contract offer, it must be kept as short and simple as possible. We should advise our buyers and sellers to consult their attorney if at any time they indicate that they do not understand the contract or its terms.

Other major points requiring careful consideration are:

PERSONAL PROPERTY – Since the seller of a listed house has already contracted to include specified items as part of the sales price, it is recommended to review and attach a copy of the listing. List all items on contract using the MLS print out as a guide.

ESCROW DEPOSIT – Premium Properties does not hold escrow. The larger the deposit, the less chance you will have of losing the buyer. Also, we should not expect sellers to take their home off the market for a couple hundred dollars escrow money. A deposit of 1% to 5% of the sales price should be sought. Deposits must be placed with the title company immediately. Deposits should be in the form of a check or wire and will not be held and may not be post-dated. The buyers should be informed that the escrow deposit must be deposited immediately into the Escrow Account. In the event their offer is not accepted, their escrow check will be refunded subject to bank clearance (normally 10 days). While a contract without an accompanying escrow deposit is valid, Sales Executive are encouraged to attempt to secure deposits. This shows seriousness on the part of buyers, and enhances the chance of acceptance by sellers. If additional deposits are included in the contract, a “date/time specific” for payment will be included when written; i.e. 24 hours after contract acceptance. I tis the Sales Executives responsibility to collect additional deposit money. This is a critical responsibility and should be taken very seriously.

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SALES PENDING/SOLD RIDERS – The agent may use a sale pending rider. However, an agent must get the sellers written approval prior to using “Sold” rider.

CLOSING DATE – Be sure to allow enough time to complete the financing arrangements, but in any case, a SPECIFIC DATE is required to legally avoid problems. Extension agreements can be obtained if and when necessary.

SPECIAL CLAUSES – Should be kept to a minimum, relying on the printed terms of the contract when possible, but the use of an addendum page is encouraged, rather than trying to “squeeze in” the required statements.

ESTIMATED COST SHEETS – Should be prepared for Buyers or Sellers, depending on whom the Sales Executive is representing. In the event of a counter offer, revised cost sheets should be prepared. Retain a copy signed by the Buyers/ Sellers in the file.

CONTRACT PRESENTATION – ACCEPTANCE

PRESENTING THE OFFER – ALL offers must be presented to the Sellers. Brokers/Sales Executives are required by law to do so unless the seller gives written notification to the contrary. Sales Executives with offers should immediately contact the listing Sales Executive and if unable to make contact, then his/her Broker. Listing Sales Executive should make arrangements to get the offer to sellers as soon as possible – time is of the essence! The Listing Agent usually knows the best approach for contract presentation to the sellers, and his/her opinion should be followed (in most instances). Premium Properties selling Sales Executive should not make direct contact with Sellers, but rather are to contact our Management if the listing Sales executive and his/her Broker cannot be contacted. In some instances, the selling Sales Executive will desire to participate in the offer presentation especially if they are representing a Buyer client. They should be allowed to do so unless there is some viable reason against it (such as Sellers have specifically requested, in writing, that offers are presented only by the listing Sales Executive). A listing agent may request to be present at the counter-offer presentation unless the Buyer declines in writing.

REGARDING OFFER – It is our policy that no property will be taken off the market until the Sellers have accepted an offer. Therefore, until the Sellers have accepted an offer, other offers must be presented. Further, unless Sellers have specifically advised us to the contrary, any offer made prior to closing is to be presented to Sellers(s) and may be accepted as a “back up” contract.

ACCEPTANCE – In the event the owner is out of town and an offer is made, the listing Sales Executive may, at his/her discretion, telephone the owner for acceptance. This acceptance should be confirmed by text, email or fax and should be stated in the offer. Acceptance is realized when the text, email or fax has been physically received and the Buyer has been informed. The actual contract must be sent to the out of town Sellers for their signatures. Verbal or telephone acceptance is not acceptable. Extreme care must be exercised in reporting to the buyers so they do not consider the contract as accepted prematurely.

CONTRACT DISTRIBUTION:

1. Legible ink signed copy to Mortgage Company and/or closing agent.

2. Closing agent copy. 28

3. Buyer’s copy (also represents receipt for escrow deposit).

4. Sellers copy for his/her/their records.

5. Other offices copy if applicable.

6. Corporate services office file copy.

7. Sales Executives are encouraged to also maintain a personal file of the sale.

ESCROW DEPOSIT-RETURN

ALL escrow deposits must be submitted to The Closing Agent immediately. Sales Executives are reminded that State Law requires immediate turnover of escrow deposits to the Title Company for deposit.

CHECKS – When a check is given as an earnest money deposit, it must either be made payable to, or restrictively endorsed to, Escrow Account. Checks must be immediately turned in to the Title Company. Checks must be dated the same as the contract and delivered to Title Company and deposited within 3 business days. If checks are received late or delivered late, it is the responsibility of the agent to have the client make out another check with the current date.

FAILURE TO COLLECT – When a contract is accepted, the selling Sales Executive is to promptly follow up and collect any additional payment of earnest money as provided in the contract. If the purchaser delays even one day in paying the additional earnest money:

1. The Broker, the Listing Sales Executive and the Seller must be promptly notified of the Buyers delay.

2. The Selling Sales Executive must pursue compliance aggressively, promptly and daily.

3. It is the sole responsibility of the Agent to collect all escrow funds. The selling Sales Executive must report success or failure to Management each day until complete payment has been received.

BUYING AND SELLING PROPERTY BY SALES EXECUTIVES

All such transaction should be discussed with Management before papers are signed to complete the transaction. All Sales Executives will list their properties rather than sell them “For Sale By Owner” if advertising or promotion is required.

Contracts which one of our Sales Executives write for purchase or sale of property in which he/she or other licensed personnel have an interest must disclose the licensed status; i.e. “Buyer is a REALTOR® or licensed Real Estate Associate” as appropriate.

When a sales agent is buying a property for personal use and their name is on the contract the agent may use the commission toward the down payment or closing costs with the exception of $1000 one time per year; An E&O or compliance fee will not apply to the transaction. It is the sales agent’s responsibility to get a letter signed by the Broker that explains the above to the title company.

When a sales agent puts a property that they own and live in as a personal residence on the market for sale the only commission due Premium Properties will be a flat fee of $1000. This is a special

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exception that is allowed one time per year. An E&O or compliance fee will not apply to this transaction. It is the sales agent’s responsibility to get a letter signed by the Broker that explains this to the title company.

CLOSING

It shall be the responsibility of Premium Properties Sales Executive to monitor transaction to closing. He/she will ensure that appropriate instructions are forwarded to the closing agent and review closing statement prior to closing. The selling Sales Executive shall also attend the closing to insure proper completion and check that the proper amount of commission is being paid to our office. Management shall assist he/she when necessary. If the Sales Executive is unable to attend for any reason, please notify management at least two business days in advance of the closing.

FOLLOW-UP

Following up after a closing enhances your image as a true real estate professional.

- After securing written permission of the buyer, introduce to neighbors

- Contact your client at least quarterly

- Thank your clients for referrals through notes, business luncheons or as appropriate

GRIEVANCES, DISPUTES & ARBITRATION

It is conceivable that two or more Sales Executives could be working with the same prospect within an office or between offices. Our policy of not sending prospects, but rather accompanying them to properties they may be interested in, will reduced much of the possibility of a dispute. However, should there be a dispute over a commission due, the following procedures will apply. Should you have a grievance or complaint against another Associate within Premium Properties or from another company, this should be brought the attention of Management as soon as possible to determine appropriate action to be taken.

INTRAOFFICE: First, the Sales Executives involved should attempt to resolve the matter between themselves. If they can come to an agreement, it should be put in writing where commissions are involved, and signed by each Sales Executive concerned. If they cannot agree, then the complainant should submit a written memo to Management, outlining briefly the claim being made and the reasons for the claim. Management will consider all views and render a decision, which will be final.

INTEROFFICE: The claim should be brought to the attention of Management as soon as possible to determine the appropriate course of action. A member of our Management Team will generally call the other office Manager/Broker to resolve the problem informally if that action appears appropriate. If deemed necessary, a complaint will be filled with Orlando Association of REALTORS® Grievance Committee. At no time shall any of the events be discussed before or after the

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hearing. Obviously, any discussions could serve to prejudice prospective members of the Association’s Grievance and/or Professional Standard Committees.

If any situations arise that are not specifically covered in the Manual, Premium Properties Sales Executives are to abide by the decision that is made by Management or by the Professional Standards Hearing Panel. If the legal issue pertains to saving or legally fighting for a commission, the agent(s) involved will contribute to legal fees the amount equal to their split level for the entire fee and will be expected to make payments on attorney’s invoices as they come due.

Premium Properties Management will make the final decision as to whether legal action will be taken in any matter after consulting with the Company’s legal counsel and Sales Executive(s) involved. The terms and conditions of the settlement of any dispute will be sole responsibility of Premium Properties after consulting with Sales Executives involved.

Sales Executives may not obligate Premium Properties in any manner, in any amount, for legal or other costs. Sales Executives, who, through their willful or negligent acts, have placed Premium Properties in a position of financial liability, shall be held responsible and accountable, and make restitution to the Company for losses that the Company incurs.

WHO MAY OBLIGATE THE BROKER

No Sales Executive has authority to bind the Broker by any promise or representation, unless specifically authorized to do so by Management. Should such unauthorized obligation occur and expenses to the office are incurred, the Sales Executive involved will pay such costs. Management shall not be liable to a Sales Executive for any expenses incurred by him/her, or for any of his acts. Except as other wish stipulated I the Manual, Sales Executives shall not be liable to Management for office help or expense. No Sales Executive has authority to spend Company money without consent of the Broker. This applies to cards, signs, advertising, etc. If a Sales Executive desire such money to be spent, he/she must speak with the Broker first and get necessary authorization. Any authorization must be in wiring and signed by the Broker or Manager.

EXPENSES

The agent is responsible for joining the Orlando Regional REALTOR® Association and the Mid Florida Regional MLS within 7 days of joining Premium Properties. This is a yearly expense and runs in the neighborhood of $1400 per year. The agent must also have dependable transportation and a cell phone. Any additional advertising above the company budget is the responsibility of the agent. All personal promotion is the responsibility of the agent.

NEW AGENT LETTER OF COMMITMENT

I HAVE SUCCESSFULLY INTERVIEWED FOR THE POSITION OF SALES ASSOCIATE WITH PREMIUM PROPERTIES AND UNDERSTAND AND AGREE TO THE FOLLOWING:

1. I am committed to work full time for Premium Properties Real Estate Services

2. I am financially able to support myself while I get started

3. I will prospect a minimum of two hours per day on the telephone, 5 days per week

4. As a result of my prospecting efforts I will sell at least two homes per month

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5. I will learn the scripts and dialogues necessary to get business and I will memorize, rehearse, role-play and internalize them

6. I understand that my progress will be monitored and I will attend all one on one coaching meeting each week

7. I will be expected to prepare a business plan to outline my goals for production and prospecting

8. I agree to attend 100% of the classroom training sessions

9. I will be on time and prepared for each session, I will be dressed in business attire

10.Any assignments that are due will be completed on time

11.I agree to join the Orlando Regional REALTOR® Association within 7 business days

I agree to order my business cards, name badge and car signs immediately.

_________________________________________ ________________________________________

Agent Date Premium Properties Date

*NOTE: When a commission split changes for any reason the new split takes effect on a certain date. All new business written from that date forward is entitled to the new split. Pending transaction remain on the old program (split).

AGENT EXPENSES

Agents are required to join O.R.R.A. (Orlando Regional REALTOR® Association). Agents must also pay participation fees semi-annually, a multi-lock key and user fee; charges to purchase lock boxes (to place on listings as needed); and password fee.

No charge for Premium Properties training.

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Overnight and 2nd day parcel postage must be approved by management and postage will be at sales executives’ expense.

Fees Per Transaction: All commissions, fee, or compensation of any kind paid for services involving any real estate matters may only be received by a Sales Executive through the Broker or Company. Any special commission arrangement on a particular transaction is strictly confidential between Management and the Sales Executive. Disclosure of the arrangement by the Sales executive to other Company Sales Executives, or personnel, is prohibited and will serve as grounds for termination of the Associate.

All Sales Executive commissions are agreed between the individual Sales Executive and the Broker. These agreements are deemed confidential between the Sales Executive and Broker.

Commission Agreement will be signed by both parties at the time of agreement and placed in the Sales Executive’s personnel file. Sales Executives can expect their personal commission structure to be commensurate with personal performance. If, or when, performance significantly changes, splits may be expected to change.

Commissions will normally be paid to Sales Executives within two business days following close of escrow and receipt of the commission, and associated closing documents in Premium Properties Administrative offices. However, brokerage feels turned in during the last two days of a month may be delayed longer due to close out of monthly business transactions.

The percentage payable to a Sales Executive is based on the net commission paid to Premium Properties for each part of the transaction, listing or selling. A Sales Executive’s portion of the commission will be reduced by marketing fees, advertising fees, Errors and Omissions insurance fee, referral fees as appropriate, or by any funds which may be owed to the company. New commission is defined as total commissions received by Premium Properties less any outgoing referral fees to other real estate offices. This is also knows as Agent Adjusted Gross Commission.

The following are normal commission situations. Should any other situation arise which is not covered in the Manual, Management reserves the right to determine the appropriate distribution of the commission received by the Company.

CO-OP COMMISSON: Commissions will be shared with cooperating Brokers as follows: Commissions resulting from another Broker selling a Premium Properties listing will be shared 50% of listing commission to the Selling Broker and 50% to the Premium Properties as Listing Broker.

FORFEITURE OF DEPOSIT: In the event a deposit is forfeited, it will be at the Company’s discretion to determine if the Company will retain any forfeited deposit. Should funds be retained, the normal agent commission split would be applicable.

REGULATORY COMPLIANCE FEE

Premium Properties charges an administrative fee on all transactions (listings sold and buyer controlled sales) of $335 per side. This fee covers the expense incurred by Premium Properties to process and package each file to be compliant with DBPR, FREC and the United States Treasury (IRS) standards and storing these records for a minimum of five years. If we close both sides of a transaction, the $335 will be collected for both sides. An agent that does not collect the fee will

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have the fee deducted from his/her portion of the commission. There are exceptions to these such as VA buyers, FHA buyers, Short Sale Sellers and REO Sellers.

RELOCATION/REFERRAL/CLIENT INCENTIVE PROGRAMS

OUTGOING REFERRALS: All outbound referrals to other Brokers should be placed through the Relocation Division. Accurate information as to name, address, and contract instructions should be obtained and most importantly the person being referred must have given his/her permission to be referred. Upon closing a referral, the monies received by the company will be split with referring Sales Executive on their normal commission split basis.

INCOMING REFERRAL: The Relocation Division receives referrals from several sources. The referral fee is usually 25-30% of the referred side either listing or selling whichever is appropriate.

When a Sales Executive is assigned a referral, whether from a corporate client or another source, a referral fee is due to relocation on that transaction and all future business generated from that transaction for a period of 18 months. No exceptions.

Incoming referrals are assigned to those Sales Executives who have the real estate experience, area knowledge and training to work with transferees. Any referral assigned to a Sales Executive is to be worked in the required time frame with reports made on a regular basis to the Relocation Division regarding the status of the referral. Management, from time to time, may find it necessary to reassign a referral from one Sales Executive to another, for any number of reasons. If unable to work with a referral, a Sales Executive should NOT reassign to another agent, but should contact relocation or Management.

The Relocation Division makes corporate calls on a regular basis to both local and national companies. To prevent potential conflicts, prior to making corporate contacts for referral business, Sales Executives are to check with the Relocation Division Manager or the Broker to determine if a particular corporation is already a Premium Properties account.

IN-HOUSE REFERRAL FEES: When a Premium Properties Sales Executive refers a prospect to another Premium Properties Sales Executive, the recommended referral fee is 25% of the Listing/Selling Sales Executives commission. The Listing/Selling Sales Executives commission is computed on his/her normal commission split and the referral fee is then deducted, as well as other authorized deductions (marketing fees, Errors & Omissions insurance fees, etc.). The Broker may, in specific instances, alter in-house referral splits.

Commissions will only be paid against the commissions actually received by Premium Properties. Deferred payments, notes or other security in lieu of immediate payment may be arranged only after explicit approval by Management and Sales Executives. Sales Executives will be paid their appropriate share at the time of final payment of all commissions due.

IN-HOUSE BONUS: An additional $100 bonus will be paid to the selling agent for selling an in-house listing. This will not apply when you sell your own listing.

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DEDUCTIONS

Following are the deductions that will be made from gross total commission’s received by the Company to arrive at a NET figure for commission computations. These deductions then become shared expenses between the Company and the Sales Executive. Where the Sales Executive has incurred an individual expense, that amount will be deducted from his/her portion only of the commission he/she is to receive.

Following are the deductions that will be made from the gross share of commission on every closing transaction:

1. ERRORS AND OMISSIONS INSURANCE: The individual Sales Executives share of E&O insurance is currently $165 on each closing. Exact amount for E&O changes periodically, in which case the Sales Executive will be informed.

2. REFERRAL FEES: Company administration will remit referral checks

3. ADMINISTRATIVE FEE: If not collected by closing agent from the buyer and/or seller

AWARDS, BONUSES, CONTESTS

From time to time, there will be company incentive programs set up wherein the winner(s) may receive a cash award, merchandise, trip, etc. All full-time Sales Executives are eligible and must be associated with the Company when awards, bonuses or prizes are awarded. Whatever cash award or value of other awards must be added to the agent’s 1099 per IRS rules.

COLLECTING COMMISSIONS DUE

Decisions to take legal action to collect commissions shall rest solely with Management and expenses of such collection shall be deducted from the total amount recovered and the balance split with the Sales Executive based on his/her commission schedule.

OFFICE PROCEDURES – GENERAL (See specific Branch Manager for intra-office policies & Procedures that may apply; i.e. parking, opening and closing the office, etc.)

Premium Properties provides all the facilities and services it possibly can to minimize Sales Executives expenses and to maximize his/her effectiveness. Management reserves the right to amend these offerings as conditions require.

BROKER SUPERVISION – Associate will be deemed to be working under Broker’s supervision only to the extent required by Chapter 475, Florida Statutes. Associate will perform all activities, including those activities Broker requires Associate to perform, independently without Broker’s supervision or control.

SECRETARIAL SERVICE – An Administrative Assistant is available in each office to assist Sales Executives Monday through Friday (approximately) 8:30 AM to 5:30 PM. In order that all Sales Executives may receive as much Administrative help as possible. A Sales Executive should not require Administrative help for t hose things that he/she should do him/herself, although the administrative assistants main duties are to handle office duties, they will assist agents in certain tasks when time permits.

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OFFICE KEY – Each full-time Sales Executive is issued an office key and is responsible, when last to leave, to insure lights and all doors to offices are locked. When I an office in the evening or otherwise in an office alone, it is recommended that the doors be locked at all times. *See Sales Manager or Admin to get access to offices for after hour use.

ASSIGNMENT OF DESKS – Desks will be assigned based on availability and production. It is important that the offices always appear neat and orderly. All Sales Executives and employees are urged to be conscious of this fact and keep desks and work areas clean and tidy at all times. NO personal office furniture, file cabinets, chairs, etc will be brought into an office without prior approval of Management.

KEEPING IN TOUCH – Sales Executives are to keep their office advised as to their general whereabouts so they calls and messages may be relayed promptly. Sales Executives should also check their voicemail periodically for messages.

AFTER HOURS CALLS – Company telephone systems accommodate call handling 24 hours a day. Sales Executives are expected to have a mobile phone.

MAIL – Sales Executives mailing for prospecting or to a “farm area” or “sphere of influence” list will be paid for by the Sales Executive. Personal mail must be prepaid. Unless incoming mail is marked “Personal”, it may be opened. WE request that all incoming mail of a personal nature be sent to your home or post office box. Please put your initials in the top left corner of each envelope.

BUSINESS CARDS – Must be ordered through the Company to maintain uniformity. They are available at the Sales Executives expense and must be charged on a credit card. We will order and pay for your first set of cards when you join the office.

INTRODUCTION LETTER/ ANNOUNCEMENTS – All new Sales Executive are expected to mail an introduction letter/announcement letter to prospects, friends and relatives. Management shall approve contents of all mailings and will assist with administrative help (if necessary).

ADVERTISING – All advertisements must be submitted to, and approved, by the Sales Manager. If this procedure is not followed, the ad will not be placed. Company ads will be placed on a rotating basis and will be at the discretion of the marketing department or Sales Manager.

All advertisements to the public in any form by agents for the Company, whether to be incurred at the company or individual expense are subject to the approval of the Sales Manager and the Sales Manager will have the sole discretion as to how and where this advertising will be used. Local advertising must maintain the same high standards of quality, good taste and common sense as established by the Company. Both advertising copy and the advertising medium shall meet these standards.

All advertising by an agent of the Company which is in the course and scope of the agent’s contractual relationship with the Company shall show the Company name, logo when possible, office telephone number and not just the agent’s name or home phone number.

All advertising ordered by the agent must be ordered in the agent’s own name (not the Company’s) and the agent must notify the vendor that the agent and not the company will be responsible for payment.

Copy content shall comply with all laws, including truth in advertising laws and real estate broker laws and regulations, and the Code of Ethics of the Nationals Association of REALTORS®.

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JUST LISTED/JUST SOLD POSTCARDS

Upon taking a “qualified” listing and upon closing a sale, the company will mail 200 “Just Listed” or “Just Sold” postcards.

Sales Executives are expected to follow-up each mailing by phone within 3-5 business days.

If the Listing or Selling Executive elects not to do the phone follow up they should notify the Manage when submitting the target list. The Manager, at his/her discretion will then assign the phone follow up to another Premium Properties Sales Executive. Any direct business secured by the Sales Executive performing the phone follow up will accrue a 25% referral fee to the Sales Executive credited with the listing or sale.

SIGNS – Yard signs are installed and removed from listed properties at company expense. Cost and placement of personal sign rides are the responsibility of the Sales Executive. If the post is stolen or removed, the cost is the responsibility of the Sales Executive.

SELLER/BUYER WARRANTY PLAN – Warranty forms are available in each office. Warranties provide protection for sellers, buyers and Sales Executives as well as the Company. The completed warranty form should be turned in at the same time as the listing agreement or at the time of closing if purchased by the Buyers. Checks for the warranty plan should be made payable to the Warranty Company. Please assure all required signatures are affixed. Also, remember to offer your buyer the opportunity to purchase a warranty, if not offered with the property. All refuses for warranty protections must be documented with a signed waiver form.

CLOSING/COMMISSIONS – The commission check and a copy of the closing statement (HUD 1) should be turned in immediately following a closing.

CONFERENCE ROOMS – Conference rooms are available in each office to all Sales Executives for meetings with clients, prospects, fellow Sales Executives, for training classes, etc. You should reserve a conference room to ensure that it will be available for your use. (See Admin). Please do not camp out in a conference room, they are to be used for agents meeting with prospects and clients.

WORK ROOMS – This is a common area and Associates should use care with the equipment and strive to keep the area neat. Many valuable tools are available, check it out!

FILES – Listing and Sales files must be kept in office filing cabinets and must NEVER be taken from the office building without approval of Management. Sales Executives are urged to make copied of any needed documents for their own use. Listing and Sales files mush have all necessary paperwork in place or (1) Listings will not be input into MLS or (2) Sales and commissions will not be processed.

ARCHIVE FILES – Closed sales and expired/withdrawn listings for the current year and the previous year are kept in the office. Files dating prior to this are stored off the premises in a storage warehouse.

GENERIC OFFICE OPENING PROCEDURES

Turn off alarm system. 37

Turn on: All lights

Copy Machine(s)

Air Conditioner/Heat

Forward messages to appropriate associates

GENERIC OFFICE CLOSING PROCEDURES

Place any outstanding messages in individual’s voice mail.

Turn Off: All lights (except light designated for night security)

Copy Machine(s)

All computers (except those left on for overnight data downloading) and printers

Coffee Pot

All Ceiling fans

Leave AC on but set at 75 degrees

Place all exterior/free standing directional signs back in the office.

Set alarm and lock all doors.

Please consult the individual branch office procedures where available.

SALES EXECUTIVES TERMINATING

While there are no specific requirements for advance notice to be given by either the Broker or Sales Executive in effecting a termination, it is a matter of ethical and professional courtesy that either party give the other as much notice as possible. The association created under the terms of this Manual may be terminated by either party, at any time, upon written or verbal notice given to the other, but the rights of the parties to any basic commissions earned prior to said notice shall not be affected by the termination unless otherwise specified herein. A Sales Executive shall not, after said termination, use to his own advantage, or the advantage of any other persons or corporation, any information gained from, or from the files or business of the Company.

Company initiated termination of an Independent Contractor agreement may be caused by any of the following and is at the sole discretion of the company:

- Dishonesty

- Any illegal or unethical activity

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- Failure to properly represent a client/customer

- Failure to deliver or collect escrow deposits to the title company immediately

- Failure to pay MLS participation fees or maintain current Association of REALTORS® membership

- Upon mutual agreement between Premium Properties and the Independent Contractor

- Failure to perform minimum sales and listing activity as defined by his/her manager

When a Sales Executive leaves the Company, DBPR paperwork will be sent to the Florida Real Estate Commission and the Board of REALTORS® to notify them of the termination of the Sales Executives association with the Company.

Upon termination, the Sales Executive will immediately return to Management all property belonging to Premium Properties, including, but not limited to: Policy manuals, listings, correspondence, buyers from referral department, training manuals, keys to the office, signs, supplies, lockboxes and files.

All listings remain the property of Premium Properties and will be assigned to other Sales Executives by Management. After termination, associates should NOT contact sellers.

Any buying prospects or listing prospects obtained through calls to our offices, walk-ins, or Company referrals are considered company generated business and will be assigned to another Sales Executive’s for servicing. The terminated Sales Executive will be expected to cooperate fully in providing complete information regarding the status of each customer.

Upon termination, for any reason, Management will adjust the terminated Sales Executives commission split to 50% for any pending transactions. All pending transactions will also be turned over to the Transaction Coordinator Department for completion for a minimum fee of $350.00.

BUSINESS CONDUCT POLICY

Conflicts of Interests in Other Affiliations

Employees and Independent Contractors of Premium Properties shall avoid outside affiliations and other transactions, which can put them in a position of conflict of interest. Employees and Independent Contractors of Premium Properties shall not, directly or indirectly:

Own stock or have any other interest in a competitor of Premium Properties or in any customer, supplier or other business that does or is expected to do business with Premium Properties, expect for the ownership of less than 5% of the securities of a company whose securities are widely held and publicly traded.

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Serve as a member of the Board of Directors (or similar body) of, or perform work or render personal service to any organization having a competitive relationship with Premium Properties or any organization with which Premium Properties does business, or;

Have any personal financial dealings with any company or person doing or seeking to do business with Premium Properties such as arrangements to receive loans (except for loan made by financial institutions on customary terms independent of any relationship with Premium Properties) commissions, royalties or shares in profits.

Outside Business Activities

Employees are generally expected to devote their full time and ability to Premium Properties interests. Accordingly, no employee shall engage in any outside business or professional activity for compensation (whether as an employee or otherwise), or the management or active ownership in any outside business concern, unless the employee informs and obtains the approval of their respective Broker.

Gifts and Other Benefits

In dealings with a company or person who does not seeks to do business with Premium Properties or any of its subsidiaries, employees shall not request, accept, offer to give, or give any payment or anything else of significant value (including such things as travel, living or entertainment arrangements), other than payments to or by Premium Properties due for goods or services furnished to or by Premium Properties in the ordinary course of business. This prohibition does not apply to transportation provided for bona fide business trips, occasional business lunches and dinners, not to other common courtesies involving insubstantial value (less than $25), that are generally accepted business practices which would not improperly influence an objective business relationship.

CONDFIDENTIAL INFORMATION

Employees shall not use or disclose, without proper authorization, to any outside party any confidential information (financial or otherwise), regarding Premium Properties or any of its subsidiaries.

Employees shall not use, directly or indirectly, for their own personal benefit, or for the personal benefit of any other person, any information made available to them by virtue of their employment which is not available to the public.

POLITICAL CONTRIBUTION

Premium Properties will not endorse or give funds or assets to any political organization or candidate in connections with any federal election. Premium Properties will not endorse or give funds or assets to any political organization or candidate or other person in connection with any state or local election, or in connection with supporting or opposing any legislation, ordinance or referendum. These prohibitions include supplying Premium Properties personnel, assets, services, or products without charge for less than the customary charge.

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Employees may make political contributions from their own funds and on their own behalf (if not directly or indirectly reimbursed by Premium Properties). However, if an employee wishes to personally endorse or contribute to a candidate or political organization, the employee may not include or mention of the employees’ title and employment with Premium Properties.

PERSONS COVERED BY POLICY

This policy generally applies to each employee, as well as members of his or her immediate family. The provisions regarding outside employment, however, do not apply to family members.

PROCEDURES

Any employee who is uncertain about the interpretation of this policy in particular situations should consult with the Management of Premium Properties. Employees of Premium Properties who are in management positions shall at least annually bring the provisions of this policy to the attention of the employees and Sales Associates of their respective companies.

CONTRACT STANDARDS

Contract for Sale and Purchase

Premium Properties advocates the use of the FAR/BAR contract current revision. Anyone using the FAR or any other contract must first seek the approval of the Sales Manager unless the FAR contract is required by the nature of the transaction (Foreclosures, FHA/VA, etc.)

Listing Agreement

Associates may execute only Exclusive Right Of Sale Listing agreements using the most current forms provided by the Orlando Association of REALTORS®.

FAIR HOUSING

Premium Properties supports and subscribes to compliance with both the spirit and the letter of the Federal Fair Housing Laws.

This position simply confirms a Company Philosophy which has been preached and practiced since we first opened our doors: Our service to the public will always be of the highest order, regardless of the client’s age, sex, race, children, color, handicap, ethnic background or religious belief. There are no exceptions to this policy and not even the slightest deviation by an Associate will not be tolerated.

GENERAL EXPENSES

In the real estate business, there are many expenses incurred in the day to day conduct of business for the office as well as the independent contractor sales associate. The following indicates the liability for the different costs.

Premium Properties will pay for the following: 41

Office Supplies: *Envelopes & Stationary for normal business correspondence.

*Paper & toner for copier and faxes

*Just Listed/Just Sold postcards (max 200 per listing/sale)

Advertising: *General advertising in our online magazines, newspapers and other media at the discretion of the sales manager.

Sales Associates are responsible for the following:

Errors & Omissions: *A $165 Errors & Omissions fee per transaction is deducted from each sales associate’s transaction at closing.

Memberships: *Sales Associates licensed with Premium Properties must become a member of the Orlando Regional REALTOR® Association and the Florida Association of REALTORS® at their own expense.

Multi-lock & Keys: *All Sales Associates must purchase a multi-lock key at their expense.

Office Supplies: *Associates are responsible for purchasing their own general office supplies used in the normal conduct of business such as folders, paper, paper clips, tape, staples/stapler, etc.

Postage: *Associates are responsible for all express mail cost and farming postage.

Advertising: *Sales Associates are encouraged to advertise properties listed for sale and do personal promotion to promote their business. All calls received for an ad paid for by an associate go to that associate.

UNLAWFUL HARASSMENT

I. GENERAL

Premium Properties is committed to maintaining a work environment that is free from unlawful harassment of any kind. In particular, we will not tolerate sexual harassment in any form. The company expects all supervisors to take the initiative to observe potentially harassing behavior or language and stop it. Engaging is such conduct will result in disciplinary action, up to and including termination.

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II. DEFINITION

A. GENERAL HARASSMENT

General harassment is persistent and systematic acts, whether physical, verbal, or visual that is so severe or pervasive as to unreasonably interfere with an employee’s ability to do his/her job.

B. SEXUAL HARASSMENT

Sexual harassment is any unwelcome conduct based on an individual’s gender that conditions job benefits on acceptance of sexual advances as to unreasonably interfere with an individual’s work performance or create an intimidating, hostile or offensive working environment. The following are some forms of the misconduct:

• Unwelcome or unwanted sexual advances

• Requests or demands for sexual favors

• Verbal abuse or kidding that is sexually oriented and considered unacceptable by the other individual

• Engaging in any type of sexually-oriented conduct that interferes with another’s work performance.

• Creating a work environment that is intimidating, hostile, or offensive because of unwelcome or unwanted sexually-oriented conversation, suggestions, requests, demands, physical contact or attentions.

• Suggestive or obscene letters, notes or invitations

• Sexually-oriented gestures; displaying sexually suggestive or derogatory objects, pictures, cartoons or posters.

• Threat or insinuation that lack of sexual favors will result in adverse employment treatment.

III. SCOPE

Premium Properties will not tolerate any form of unlawful harassment against its employees by anyone, including supervisors, employees, vendors, clients or customers.

IV. COMPLAINT PROCEDURES

A. Anyone who feels that he/she has been unlawfully harassed should first bring the matter to the attention of his/her supervisor or the supervisor’s manager immediately.

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B. If the employee or Sales Associate feels that due to the nature of the situation the complaint cannot be discussed with the supervisor, he/she should direct the complaint to the Broker.

C. Supervisors must immediately notify the Broker of any complaint received. Corporate Human Resources will guide and conduct all investigations.

NOTE: Managers are not authorized to conduct any fact finding investigations nor should they discuss the situation/complaint with other individuals who do not have a “need to know”.

D. All complaints will be promptly investigated.

E. All parties involved in the investigation will keep complaints and terms of their resolution confidential to the fullest extent possible.

F. All records relating to an unlawful harassment complaint, interview or investigation will be kept confidential and separate from other personnel records during the investigation of the complaint.

G. Following the investigation, only disciplinary notices which are a result of the investigation will be placed in the personnel file.

H. Upon completion of an investigation, the Broker will recommend appropriate measures to be taken which, depending on severity, may include discipline up to and including terminating of the harasser.

V. Retaliation

Retaliation against anyone for reporting incidents of unlawful harassment or for cooperating with the investigation of a harassment complaint is prohibited.

VI. RESPONSIBILITY

A. Everyone at Premium Properties is expected to avoid any behavior or conduct that could be interpreted as sexual harassment.

B. All employees are responsible to inform any individual directly wherever that individual’s behavior is unwelcome, offensive, in poor taste or inappropriate.

C. Every supervisor at Premium Properties must ensure that this anti-harassment policy is enforced in his/her work area.

D. If a complaint is raised, the supervisor must follow the specific steps outlined I this procedure in all instances.

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RISK MANAGEMENT

To help minimize problems for sellers, buyer dissatisfaction and claims, threats or suits, the following strategies should be employed on all sales in which Premium Properties Sales Associates participate.

1) Sellers Property Disclosure Statement – completed by the seller and signed, dated and updated. Additionally, the disclosure must be completed as the property is in current condition – not as it would be after anticipated repairs are completed. Additions, corrections or changes would be made after repairs are completed.

2) Home Warranty – most of the annoying problems which arise after the sale can be eliminated by home warranty protection. Since the protection can be added to a home without cost until closing, it is a painless way to minimize post sale problems and confirm to our Errors and Omissions obligation.

3) Professional Inspection – an objective, third party professional inspection is beneficial to the buyer and seller. We should recommend this process in virtually every sale. We should be prepared if asked to offer a list (3-5) from which the buyer could make a choice. We should never agree to review or evaluate the inspection report, perform the inspection or in any way have a connection with or an interest in a professional inspection company that we have on a list.

These three (3) steps should be used together on each transaction so that service is maximized, accusations of negligence or non-disclosures are minimized and legal action eliminated.

TCPA COMPLIANCE

Violating TCPA laws (or any laws) is a violation of Company policy. Please be fully aware of the law before making any phone calls especially if you plan on using any type of Autodialing device.

The Company does not have any insurance to cover violations of TCPA as you would be violating the law and insurance will not cover violations of the law.

Please read below carefully and ask your Broker or Manager if you need further explanation.

What Is the TCPA?

The TCPA is the Telephone Consumer Protection Act. It’s a piece of federal legislation that protects consumers’ right to privacy and is designed to cut back on annoying—and more specifically unwanted—telephone calls and texts.

What Is Regulated Under the TCPA?

Have you ever wondered whether the Do Not Call List is a real thing, or whether it’s just a polite way of asking telemarketers to leave you alone? We’ve got good news: it’s real! The TCPA created a

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national National Do Not Call Registry and prohibited telemarketers from calling anyone on it. The TCPA also regulates the ways in which businesses can contact people via their cell phones, residential phone numbers, text messages, and faces. Robocalls and automated dialing

As cool as it sounds, a robocall isn’t actually a call from a futuristic robot. It’s when a computer dials a number instead of a human. Telemarketers use automated dialing to contact thousands of consumers at once. This practice is regulated under the TCPA.

Pre-recorded voice messagesIt’s not illegal for a business to call customers for marketing purposes. However, a real person needs to be on the line. It’s a violation of the TCPA to use pre-recorded voice messages.

What is a TCPA Violation

Unsolicited Calls to Cell Phones

If a business, without prior permission, calls a cell phone using automated dialing or a pre-recorded message, that constitutes a TCPA violation.

Unsolicited Calls to Residential Phone Numbers

In order for businesses to call residential numbers, they must have an “established business relationship” with the owner of the number. If the telemarketer hasn’t done business with the consumer in the last 18 months, then they do not have an established business relationship and calling them using automated dialing or a pre-recorded message is a TCPA violation.

Calls to Those Listed on the Do Not Call Registry

It’s illegal to call anyone who has opted-out of phone calls by registering on the federal Do Not Call Registry.

What Are the Penalties for violating the TCPA?

Penalties associated with violations of the TCPA can include $500 per each violation and up to $1,500 per willful violation. It’s not uncommon to see settlements in the tens of millions of dollars for class action TCPA lawsuits.

What Are Some Real-World examples of TCPA Violations?

There are several notable cases that highlight how important it is to follow TCPA regulations, whether you’re a brand, or a marketing agency working on behalf of a brand.

Dish Network

In 2017, Dish Network had to pay approximately $341 in damages for violating TCPA guidelines. Members of the class action suit alleged that Dish had knowingly called numbers on the Do Not Call registry. Dish tried to argue that their telemarketing provider, Satellite System Network, was at fault, not them. The jury rejected this argument and awarded $400 per call.

Domino’s Pizza

In 2013, Domino’s Pizza agreed to pay nearly $10 million dollars to settle a class action lawsuit. Similar to the Dish Network case, the court found that consumers had received unsolicited

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marketing calls. Additionally, it was found that Domino’s sent promotional texts without receiving consent first.

That’s a basic overview of the Telephone Consumer Protection Act. Of course, as is the case with most legislation, it’s ever-evolving.

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