Office Policy on Collecting Upfront Real Estate Fees:

Realty Association policy does not permit the practice of collecting upfront fees or commissions.

The revised sections of the Independent Contractor’s Agreement are included below for your review:

High-risk Activities, Unprofessional Business Practices, and Conflicts of Interest:  Licensee is prohibited from activities and practices that could be considered to be high-risk, unprofessional, or a possible conflict of interest. These include, but are not limited to: dual agency, limited-service listings, the collecting of upfront fees or commissions, “side agreements”, “silent seconds”, commission advances, acting as power of attorney for a non-relative, "sandwich" deals, equitable title listings, contract assignments, cash rebates or gifts, repair escrow agreements, certain lease purchases, “getting around” or concealing the triggering of a due-on-sale clause, etc.

Commissions Charged to Clients: Licensee is free to negotiate the commission charged to a client, provided that fair compensation is offered to the cooperating buyer's broker or facilitator (typically 3% of the sales price), and that the Licensee provides full service to the client.

7/30/2009