Advantage Homes, LLC
Real Estate Commission Policy
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin.
This Real Estate Commission Policy (the "Policy") sets forth the terms and conditions upon which Advantage Homes, LLC ("Advantage", "We", "Us" and "Our") will pay to You and Your Broker of Record (collectively "You", "Your" and "Yours") a Real Estate Commission. You will not be the procuring cause of the sale of an Advantage home unless and until You have satisfied each of the following terms and conditions:
1. You must be a real estate agent or broker that is licensed in the State of Maryland.
2. You must introduce, deliver and accompany the prospect to the Community Sales Office for the first time IN PERSON and register him/her. This means You must be present with the prospect on their initial visit to the Community.
3. You must register the prospect by completing in full (the Federal Tax # must be provided) the Real Estate Commission Registration Form (the "Registration Form") at the time of the prospect's initial visit to the Community Sales Office. This means that You cannot register prospects unless they are present; You cannot register prospects over the telephone or by FAX; the Advantage Sales Representative will not register prospects on Your behalf; and, prospects cannot register themselves on Your behalf. The Registration Form relates only to the specific Community where You introduced, delivered and accompanied the prospect and submitted to Us a completed Form (the "Registered Community"). This means that You will not earn a Commission should the prospect visit a different Advantage Community unless You accompany and register the prospect at such Community and otherwise satisfy all other terms and conditions of this Policy. The Registration is only effective for a period of thirty (30) days from the date our Sales Representative acknowledges receipt of a Registration Form, unless extended by Your re-registering the prospect as provided in paragraph 4 (the "Effective Period"). In the event a sales contract is written for a home in the Registered Community within the Effective Period, then You will earn a Commission in accordance with paragraph 5; provided, however, You will not earn a Commission in the event Your prospect visited the Community: (a) by themselves and were registered by Our Sales Representative within thirty (30) days of Your submission of a Registration Form; or (b) with another real estate agent that filled out a Registration Form whose Effective Period is not expired on the date You submit Your Registration Form.
4. After the expiration of the Effective Period, You will not be eligible to earn a Commission unless You re-register the prospect prior to their signing a sales contract by filling out and submitting another Registration Form. The prospect must accompany You at the time of re-registration unless You re-register the prospect prior to the expiration of the Effective Period. Re-registration will extend the Effective Period for thirty (30) days from the date Our Sales Representative acknowledges receipt of another Registration Form. In the event a sales contract is written but terminates after the expiration of the Effective Period for any reason, then You will not earn a Commission should the prospect write another sales contract unless You register the prospect prior to their signing the Sales Contract as provided above.
5. Commissions are earned at the time of the transfer of title to a home from Us to a purchaser as evidenced by the recording of a deed in the land records. However, it is within Our discretion to advance Commissions at the time of settlement. Commissions will be paid by check to the Broker of Record, to whom We will issue an IRS Form 1099. In the event We advance a Commission to You, but for any reason the deed is not recorded in the land records, then the Commission will not be earned by You and You must immediately reimburse Us the amount advanced.
6. We will pay only one Commission per home. Should a dispute arise between You and another real estate agent, then You agree to submit the matter to binding arbitration through the procedure established by the Association of REALTORS® for the jurisdiction where the home is located. We will hold the Commission pending such arbitration and will pay the Commission as directed by the findings of the arbitrator(s), which decision shall be based upon the terms and conditions of this Policy; provided, however, in no event will We be liable to You and the other real estate agent for any amount in excess of the Commission actually being held by Us. This means We will not pay two Commissions on the sale of one home.
7. We recognize Buyer's Agents and will pay Commissions to such Agents based upon the same terms as other real estate agents; provided, however, that if You are a Buyer's Agent You must (a) disclose this fact to Us in writing at the time of registration; and (b) You must accompany and register Your client on their initial visit to the Community and otherwise satisfy all other terms and conditions of this Policy. Unless You are a disclosed Buyer's Agent, You are acting as Our Agent in this transaction and, therefore, agree to represent Our interest and act in good faith on Our behalf.
8. Unless otherwise agreed to in writing by Our Vice President of Sales and Marketing, the Commission that You will earn upon the sale of a home that satisfies all of the terms and conditions of this Policy is 3% of the Base Price or the Purchase Price whichever is less (the "Standard Commission"). In the event the Registration Form has a Commission/Bonus listed which is more than the Standard Commission, then the increase amount is subject to and conditioned upon the written approval of Our Vice President of Sales and Marketing. No Commission will be paid by Us for the sale of Moderately Priced Dwelling Units or any other type of home which is or may be required to be sold at a non-market price or which is or may be the subject of special financing requirements.
9. You acknowledge that We are pledged to the letter and spirit of U.S. policy for the achievement of Equal Housing Opportunity and You also agree to comply with all applicable federal, state and local Fair Housing Laws including, but not limited to, Title VIII of the Civil Rights Act of 1968 and the Fair Housing Amendments of 1988. You further agree to comply with all federal, state and local laws which prohibit kickbacks and unearned fees including, but not limited to, the requirements of the Real Estate Settlement Procedure Act (RESPA). You represent and warrant to Us that: (a) You have no dealings or agreements with Our Sales Representatives or employees other than to provide to Us the information about the prospect set forth in the Registration Form; and (b) You will not pass on to prospective homebuyers, directly or indirectly, any Commission or incentive paid to You, or use such funds to circumvent any federal or lender requirements relating to homeowner equity.
10. Our Sales Representatives do not have the authority to modify, amend or make changes to any of the terms and conditions contained in this Policy, nor do they have the authority to increase the amount of Commission/Bonus to be paid to You above the Standard Commission or to enter into any listing agreements on Our behalf. In order to be valid and binding upon Us, any such amendments, increases in Commission/Bonuses or listing agreements must be in writing and signed by Our Vice President/Director of Sales and Marketing. All times are of the essence in this Policy.
11. You understand and agree that this Policy constitutes a "special agreement to the contrary" pursuant to Section 14-105 of the Real Property Volume of the Annotated Code of Maryland and that for You to be the "procuring cause" of the sale of an Advantage home (and, therefore, earn a Commission) You must satisfy each of the terms and conditions set forth in this Policy.
12. Transfer of Co-Op to Purchaser - If all or any portion of the Co-Op commission is to be credited to the Purchaser at settlement, Seller requires with the initial Purchase Agreement a signed statement from the Broker of Record. The statement must detail the terms of the Co-Op transfer to the Purchaser and acknowledge that they agree to the transfer. The statement must also state that the Broker of Record understands that the entire amount of the Co-Op including the amount transferred to the Purchaser will be reported to the IRS. A W-9 with the full amount of the Co-Op will be sent to the Broker of Record and it is the responsibility of the Broker of Record to provide the Purchaser any required IRS form or statement needed to acknowledge receipt of any or all of the Co-Op amount. In the absence of a signed statement from the Broker of Record containing the information and acknowledgements as described above the entire amount of the Co-Op will be dispersed to the Broker of Record.
For more information on becoming an Advantage Homes Alliance Agent contact
Jim McCormack at 301-540-1778 or jmccormack@advantagehomes.org or visit our Facebook page to sign up: www.facebook.com/AH-Agent-Alliance
