2020 Realtor Onboarding Workbook

JOHN 3:16

WELCOME

REALTOR® & MLS ONBOARDING THE BEGINNING OF A NEW JOURNEY

MEMBERSHIP ONBOARDING

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LETTER TO GEMLS MEMBERS

CONGRATULATIONS

On Becoming a Member of the Golden Empire Multiple Listing Service (GEMLS)

Try not to become a man of success.

Rather become a man of value – Albert Einstein

Scott Knoeb

2020 President

C

ongratulations on becoming a member of the Golden Empire Multiple Listing Service (GEMLS), and welcome to a profession that is the essence of The American Dream. A profession where hard work, integrity, and cooperation can fast track your path to success.

The GEMLS is a tool for all members that gives you instant and updated information on the market. Over 90% of sellers list their home on the MLS, which makes us the number one source for our community to list their home.

Your membership comes with access to top of the line technology, engaging educational classes, and an amazing Real Estate network.

The GEMLS is constantly adapting to new technology that enters the market. One of the new features is the MLS Touch (a local REALTOR® member benefit)! This new app gives you the ability to market directly to your clients. This ability to stay ahead of the curve is due to a long-standing relationship with Rappatoni and the hard work of the GEMLS

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BAKERSFIELD ASSOCIATION OF REALTORS®

Board of Directors, Technology Committee, and Strategic Planning and Finance. Rappatoni has been a top provider of MLS technology for over 45 years. It provides the overall structure for the GEMLS, real estate tax roll, school district information, forms, and community information. To stay up to date on how to use the latest tools and all the GEMLS has to offer, ask about the Technology Committee and MLS Forum’s Events. The MLS Forum also gives one lucky winner a free year of MLS fees if you attend five or more events and are randomly picked in our drawing.

As President of the GEMLS, I want you to know how dedicated we are about giving you the tools and knowledge to succeed. The Board of Directors, committee members, instructors, staff, and myself are more than happy to talk to you about your career and how to get involved with the Association. We appreciate any member feedback from our events and from the tools we provide. So, get ready to grow yourself, your business, and your network.

Top 10 Steps Top Producers Say to Always Follow 1. You can never know enough. Be a life-time learner.

2. You only have 15 seconds to sell yourself.

Be persuasive.

3. Some deals will fall apart. Do not be dismayed.

4. Don’t be afraid to tell your clients, “I don’t know”, but find the answer.

5. Put yourself out there and prospect.

6. Find a mentor! Learn the trade and contracts.

7. A transaction is made up of millions of details which turn into dollars. You can’t forget the details.

8. Find the right technology for you and your business.

9. Build a business plan and be consistent.

10. Sometimes you have to say “NO”.

L E T T E R T O R E A LT O R ® M E M B E R S

BEND THE CURVE Ronda Newport 2020 President

I

t is with great excitement and an incredible sense of pride, that I welcome all of you to our Association. It is my honor to serve as your 2020 President of the Bakersfield Association of REALTORS® My vision for 2020 is one of excellence.

Pursuing excellence is never easy to do, but it is a quality that people appreciate and strive to master in their Real Estate business. I believe we all should strive to surpass the standard expectations that the industry and public has set for us. We should seek to push through mediocracy and have a hunger for perfection, and we should never yield to “good enough”.

I see that as an amazing opportunity for you as incoming REALTORS®. By definition, the word excellence is “a talent or quality which is unusually good and so surpasses ordinary”. The quality of “excelling and being the very best at what you do”.

As NEW REALTORS®, you can see this profession with fresh eyes and open minds.

The business of real estate continues to change from the way we have done business in past years. What an amazing opportunity for you to dive in with your new skills and cutting-edge technology at your fingertips. VALUE is the new name of the game. If you can maneuver through this business and provide exceptional value to your clients, you will quickly find yourself at the top of your game.

Recently, at a Leadership Summit, I heard the term “Bend the Curve”. What does that mean? To me it means don’t be ordinary, take the unbeaten path, and explore the possibilities of greatness. This is what I would like to ask of you for your new found career.

As REALTORS®, we must take responsibility for our actions, set high expectations, grow in our abilities, and up our integrity game. YOU should PLAN for SUCCESS by pursuing excellence. Don’t fool yourself, if this was easy then everyone would do it. To be excellent you will need to

risk failure and not fear it, as failure results in growth. Discomfort is a sign that we are on the right path to success. Excellence is a process that you need to commit to, and I promise you will be happy that you did.

Being a member of the Bakersfield Association of REALTORS® guarantees you a wealth of tools at your fingertips. If you think you are alone, think again. Our staff here at the Association is always here to help you to be successful with education, collaboration opportunities, mentoring, and support. There are so many opportunities for you to get involved. We are excited to watch you advance your career and wish you much success moving forward!

Ronda Newport, 2020 President of the Bakersfield Association of REALTORS®

MEMBERSHIP ONBOARDING

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2020 RONDA NEWPORT

2020 Assoc. President 2020 MLS Director

NIK BOONE

2020 - 2022 Assoc. Director

JOHN HOUCHIN

SCOTT KNOEB

2020 Assoc. President-Elect 2020 MLS President

TERRI COLLINS

2020 MLS Director

MARTHA JOHNSON

2020 MLS Director

2019 - 2021 Assoc. Director

GLENN PORTER

DEREK SPRAGUE

2018 - 2020 Assoc. Director

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Executive Staff and Directors

2020 MLS Director

BAKERSFIELD ASSOCIATION OF REALTORS®

ANNA ALBIAR

2020 Assoc. Vice President

MICHELE COOPER

2019 - 2021 Assoc. Director

JENNY MAGANA

2020 MLS Director

BRIAN TUTTLE

2018 - 2020 Assoc. Director

WAYLAND LOUIE

2020 Assoc. Secretary/Treasurer 2020 MLS Director

FABBY DEES

2020 MLS Director

BILL MELL

2019 - 2021 Assoc. Director 2020 MLS Director

MICHELLE VALVERDE

2020-2022 Assoc. Director 2020 MLS Director

ATHENA COLLUP

Immediate Past President

GREG HOLLAND

2020 MLS Director

KYM PLIVELICH

2019 - 2020 Assoc. Director

KIM HUCKABY

Assoc.Chief Executive Officer MLS Chief Financial Officer

LETTER FROM THE CEO

Kim Huckaby

Chief Executive Officer

T

oday is a significant day in your career as a real estate licensee! It is the day you take up the banner of professional excellence… the REALTOR® brand. It is a brand that is recognized for its commitment to maintaining the highest level of ethics and professional performance the public has the right to expect!

While I have been in our industry for 7 years, this year has afforded me the amazing honor of serving the members of our Association as Chief Executive Officer.

Each and every month we have the distinct privilege of welcoming new members into our distinguished Association, recognized as one of Kern County’s largest and most influential trade organizations for more than 115 years.

As part of that welcome, we are pleased to take this opportunity to lay the foundation for a positive and productive partnership between our members, the Association Leadership and staff for years to come. It is an opportunity for us to demonstrate our

Welcome to our Association

commitment to you and to your professional success. We invite you to get up close and personal with us!

We are Forward Thinking… As leaders within our professional and regional community, we are committed to advancing a standard of professionalism that personifies the highest standard of ethics and business practice. We establish a bold and ambitious vision and plan for our Association… then lead by example with integrity and passion.

We are Strategic… We are mission focused; we look at the big picture and make decisions that are fact-based and in the best interest of our members, always striving to do the right thing; we continue building a strong leadership team that is capable of matching our organization’s goals with the changing environment.

We are Intentional… We intentionally challenge the status quo to ensure our members strive for and maintain the highest standards of competency.

Whether a new licensee or a seasoned

veteran, our commitment to you remains steadfast and strong… to deliver the best possible programs, products and services to maximize your proficiency, efficiency and productivity.

We are Innovative… We consistently seek new and creative ways to utilize our internal talents and resources, build strong collaborative community partnerships and deliver our programs, products and services more effectively, thus maximizing our member’s value proposition.

Congratulations and welcome to our Association!

“I AM A REALTOR® and I live by the Code… As the real estate market is a dynamic, demanding environment, so the Code is, has been and will continue to be a demanding and dynamic document; a plan for professionalism in real estate capable of including and accommodating every change, challenge and controversy which arises” — NATIONAL ASSOCIATION OF REALTORS® MEMBERSHIP ONBOARDING

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ORGANIZATION CHART Association Board of Directors

Committees

CEO

GE/MLS Board of Directors

Attorney

CPA

BARCF/BOD 501(c)(3)

KIM HUCKABY Chief Executive Officer

Ginger Edwards Finance and Facilities Director

Cindy Kiser

Education and Professional Development Director

Jamey Lyster

Information Technology (IT) MLS Services Director

Linda Marie Curutchague

Member Services Manager

Marrisa Williams Member Services Specialist

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BAKERSFIELD ASSOCIATION OF REALTORS®

Claudia Bugarin

Professional Standards Administrator

Meghan Cooper Member Services Administrative Assistant

Carol Duran

Communications Design & Development Director

Jenifer Pitcher Government Affairs Consultant

A S S O C I A T I O N

S T A F F

–

W E

S U P P O R T

Kim Huckaby, CEO

n Leadership Development

and Governance n Implement the Association’s strategic and tactical plan to deliver its purpose and objectives n Plans for the future of our Association

Y O U !

Carol Duran

Communications, Design and Development Director n Designs in and out of house

collateral and marketing pieces n REALTOR® Magazine n Social media and e-blast communications

Ginger Edwards

Linda Marie Curutchague

n Financial Processing and Reporting

n Supervises the operation of

Finance & Facilities Director

Member Services Manager

n Human Resources n Billing

member services department n Maintains membership documents and information n Assists with all membership needs

Jamey Lyster

Marrisa Williams

Information Technology (IT) MLS Services Director n MLS Operations

n MLS Rapattoni Instructor

Member Services Specialist

n Provides and promotes

outstanding customer service n Assists with all membership needs

n Internet Support n Technology

Claudia Bugarin

Professional Standards Administrator

n Grievance and Professional

Standards n Commercial Investment Liaison

Cindy Kiser

Educationand Professional Development Director

n Coordination of Educational

and Professional Development Programs and Services n Logistics — Programs and events n Store Administrator

Meghan Cooper

Member Services Administrative Assistant

n Provides and promotes outstanding

customer service n Assists with all membership needs n Assists with bookkeping n Assists with communications

Jenifer Pitcher

Government Affairs Consultant

n MA in Political Science and Sociology n Political Involvement since 2009 n 2013 Young Professional of the

Year by Keep America Beautiful n Adjunct Professor of Political Science

MEMBERSHIP ONBOARDING

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N E W

M E M B E R

SPEAKERS

O N B O A R D I N G

David Knoeb, Broker

Jenny Magana

n 2018 Region 12 Chair

n 2019 WCR President

2020 GEMLS Director

Association President in 2013

n C.A.R. & NAR CREPAC Trustee

n 2019

Onboarding Committee Chair n 2017 Leadership Academy Graduate n 2016 YPN Chair n 2014-2016 Served on Attendance & Reception n Joined the Association in 2011

2018 - 2019 n 2014 REALTOR® of the Year n MLS Board of Directors 2013 - 2018 n NAR Committee Representative on NAR’s RPAC Trustees Fundraising n Broker Owner of Frontier Real Estate Services, Inc. since 2007

Wayland Louie, Broker Associate

Jenifer Pitcher

n 2013 Salesperson of the Year

n MA

Government Affairs Consultant

2020 Secretary Treasurer

in Political Science and Sociology Involvement since 2009 n 2013 Young Professional of the Year by Keep America Beautiful n Adjunct Professor of Political Science

n Broker Associate with RE/MAX

n Political

Golden Empire n 2010, 2013 Grievance Committee Vice Chair n Association Director 2011 - present n MLS Board of Directors 2011 - present n Joined the Association in 2005

Joe Newton

Ombudsman & Mediation Services n 2010 REALTOR®

of the Year

n Real Estate Broker since 1971

n Professor of Real Estate Education

at Bakersfield College since 1970 n Coordinated the real estate program for licensing and continuing education n Author of many Real Estate Books, Articles and Materials

Sheri Anthes, Broker

Association President in 2015

n 2020 Region 12 Chair

n 2013 – present C.A.R. Director

n 2017 Dean of Leadership Academy n 2014-2017 GEMLS Director

n 2012 - 2016 Association Director n 2013 REALTOR®

of the Year n Vice President of Operations, Coldwell Banker Preferred, REALTORS® n GRI Certification 2004

Scott Knoeb, REALTOR® Association President Elect

n 2020 Salesperson of the Year n 2020 GEMLS Director

n 2020 Charitable Foundation Director n 2020 C.A.R. Director n 2019 C2EX Certified

n 2019 Chair, Ronald McDonald House n 2016-2018 Association Director n 2017 YPN Committee Chair

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BAKERSFIELD ASSOCIATION OF REALTORS®

FACILITATORS

John Houchin 2020 Onboarding Committee Chair

n 2018-2020 GEMLS Director n 2019 Kern Leadership Academy

Graduate n 2018 Chair of the MLS Forum n 2017 Leadership Academy Graduate n 2017 Co-Chair of the MLS Forum n 2015 Rising Star Recipient n Joined the Association in 2014

Vanessa Hartwig 2020 Onboarding Committee Vice Chair

n 2019 Chair of the MLS Forum n 2019 Secretary of Women’s

Council of REALTORS® n 2018 Co-Chair of the MLS Open Forum n 2017 Leadership Academy Graduate n Joined the Association in 2015

A

P A T H W A Y

T O

PROFESSIONAL CONDUCT Respect for Property n Be

responsible for everyone you allow to

enter the listed property. n Keep

all members of the group together

when showing property. n Never

give anyone unaccompanied

access to a listed property without permission. n Leave the property as you found it (lights, heating, cooling, drapes, etc.) when the occupant is absent. n Take shoes and boots off inside the property if the weather is bad. n Contact the listing broker immediately if you think something is amiss (e.g., vandalism) with a property. n Be considerate of the seller’s property.

Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities or bring pets without permission. n Use sidewalks and walkways to avoid damaging landscaping or tracking debris.

Timeless Tips: n Follow The “Golden Rule.” Do unto others as you would have them do unto you. n Show courtesy and respect to everyone.

Respect the Public n Identify your REALTOR® and professional status in contacts with the public. n Leave your business card if not prohibited by local rules. n Encourage the clients of other brokers to direct questions to their agent or representative. n Do not tell people what you think; tell them what you know. n Respond promptly to inquiries and requests for information. n Call if you are delayed or must cancel

Safety on the job The 10-Second Rule

Inattention is one of the main reasons people find themselves in dangerous situations. Take a few precious seconds during the course of your day to assess your surroundings.

n

Promptly explain the situation to the listing broker or the occupants if a prospective buyer decides not to view an occupied home. n Communicate clearly; Don’t use jargon or slang that may not be readily understood. n Schedule appointments and showings as far in advance possible.

Take 2 seconds when you arrive at your destination. n Is there any questionable activity in the area? n Are you parked in a well-lit, visible location? n Can you be blocked in the driveway by a prospect’s vehicle?

n Promise only what you can deliver and

Take 2 Seconds after you step out of your car. n Are there suspicious people around? n Do you know exactly where you’re going?

all times. Dress appropriately and drive a

Take 2 Seconds as you walk towards your destination. n Are people coming and going or is the area unusually quiet? n Do you observe any obstacles or hiding places in the parking lot or along the street? n Is anyone loitering in the area?

Take 2 Seconds at the door. n Do you have an uneasy feeling as you’re walking in? n Is someone following you in?

Take 2 Seconds as soon as you enter your destination. n Does anything seem out of place? n Is anyone present who shouldn’t be there or who isn’t expected?

10 SECONDS TOTAL

Taking in your surroundings lets you spot and avoid danger. Make it a habit.

Then share it with someone else.

(Appeared in “What You Can Do About Safety”, REALTOR® Magazine, September 2000. Courtesy Night Owl/Vector Security, Landover, MD.)

keep your promises.

Timeless Tips: n Communicate with all parties in a timely manner. n Present a professional appearance at clean car.

Respect for your Peers n Identify your REALTORS® and professional status in all contact with others REALTORS®. n Promptly and courteously respond to other agents’ calls, emails teand faxes. n Be aware that large electronic files with attachments or lengthy faxes may be a burden on recipients. n Notify the listing broker if there appears to be inaccurate information on the listing. n Share important information about a property, including the presence of pets, security systems, and whether sellers will be present during the showing. n Show courtesy, trust and respect to other real estate professionals. n Avoid the inappropriate use of endearments or others denigrating language. n Do not prospect at other REALTORS® open houses or similar events. n Return keys promptly and carefully replace in the lockbox after showings.

an appointment or showing.

MEMBERSHIP ONBOARDING

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WHAT IS

MLS? n In the 1940’s our MLS was established to

facilitate the cooperation between brokers to serve the needs of our buyers and sellers. n A newly formed corporation owned by the Association and governed by a Board of Directors.

The POWER OF MLS Mandatory MLS

n Which means that those who participate

agree to submit to the service all residential listings, up to and including four units, to the service within a specified number of hours after all signatures are obtained. Your MLS provides that the listings must be submitted within (2) two business days.

Listing Requirements

n Listings that must be submitted are

exclusive authorization and right to sell and exclusive agency listings. n Mandatory submission is required for properties within the jurisdiction of the Association. n Other types of listings at discretion of office n Exempt listings when requested by the owner and the appropriate form, signed by the owner has been filed with the MLS.

Scope of Service

n Important to understand that there are

differing business models. n Commonly used full service listings. n Limited Service Listings. n Limited Service Listings are to be designated. n LS = Limited Service n EO = Entry Only

How are listings submitted

n Either the listings are loaded at the

broker’s office or they may be submitted to the Association office for loading. n There is a fee if the Association loads them.

Marketing (Public) Remarks

n Two sections for remarks in our MLS. One

is marketing, the other is agent remarks.

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BAKERSFIELD ASSOCIATION OF REALTORS®

n MLS rules provide that marketing remarks

are limited to a description of the property. n No identifying info on the listing office or agent. No names, telephone numbers or email addresses. n This information must be limited to the agent remarks. n If marketing remarks included in the MLS are not in violation of real estate law, Code of Ethics or do not lead back to the Broker of a Lender, they will be deemed permissible and not in violation of our MLS Rules (inducements and financing information is not permissible).

Status Changes

n Participants in the MLS are required to

keep the status of their listings updated in the system. n Changes in the status must be reported within (1) one business day.

Your Rights

Right to be present for presentation of offers and counter offers.

Confidential Nature of Information

n Use “Client” and “Buyer” Reports on the

computer print outs. n SECURE YOUR PASSCODE - Keep your login name and password in the computer confidential.

MLS Data Security

n Adaptive Authentication Security System n Improve MLS Security by only allowing

authorized users to access MLS n Eliminates ID sharing and ID theft n Increases Agents’ professionalism in front of clients

Whistle Blower

n Quick & simple method to report failure to

input listings or keep status current – Link on data page n Gives (2) two business days to get corrected without penalty. (There are exceptions). n Goal: Keep our database accurate.

Citation / Fine Policy

n To ensure integrity of MLS and MLS

database. n Reported to MLS Compliance Department by way of “Whistle Blower” form. n Correctable n Non-Correctable – Fines issued in accordance with policy.

Repeat Violations

n Effective as of June 30, 2009, if within

a six (6) month period, the Violator is issued two NV-W for violation of the same MLS Rule.

The second NV-W (Notice of Violation – Warning) will result in an AUTOMATIC NV-FA Notice of Violation and Fine Assessment (assuming that the violation(s) is one that can be corrected).

Mandatory Photos

n The input of a minimum of one MLS

photo is required for all new Residential and Residential Income (1 – 4 units) property categories (unless a Seller’s Request to Withhold photo is filed with the MLS at time listing is submitted). n If only one photo is input, it must be a front view of the subject house. n Photo must be uploaded within (1) one business day of entry date.

MLS Lockbox Rule

n MLS Participants and Subscribers

who utilize lockboxes or other access devices shall use the designated or authorized lockbox. n More than one lockbox or access device may be used on a property as long as one of them is the lockbox designated or authorized.

Lockbox Rules

n Keep lockbox key secure. n Don’t let anyone else use your device. n Don’t keep pin code with your device. n Four (4) hour response obligation in effect

every day from 8am to 6pm.

Listings

n Accuracy & Complete Listings

Disclosure of Interest

n You must disclose your position if you have

an interest in property listed in the service. n Likewise if you wish to acquire an interest in a listed property, you must disclose your interest prior to the time an offer to purchase is submitted.

Withdrawn v. Cancelled

n A Withdrawn property is no longer active

in the MLS, but the listing agreement which was used to place the property on the MLS is still in effect. Generally, the withdrawal of a property from the MLS is to provide notice that the property is temporarily not being actively marketed. This could be due to some renovations, repairs or the seller has requested no active marketing for a short period. n DOM will still accrue while a listing is in Withdrawn status. n Listings that are Cancelled have had the property’s listing agreement cancelled (broker and seller), terminated or is otherwise not valid.

Contingencies on Listings

n Any contingencies on listings must be

specified and noticed to participants.

Extensions

n Extensions on the listings must be signed

by the property owner, dated prior to expiration and entered into the computer or turned into the Association before the expiration date. n Any extension received after the expiration date shall be treated as a new listing, subject to any applicable fees.

No Control on Commission or Listing Terms

n It is a violation of the MLS rules, and also

anti-trust laws, to indicate to a client that the MLS has any rules or procedures concerning the amount of commission offered through the MLS, or the time frame of listing duration.

No Conditions on Commission

n The amount of compensation offered

through the MLS may not contain any provision that varies the amount of compensation offered based on conditions precedent or subsequent or on any performance, activity or event.

Variable Rate Commission

n Arrangement between the listing office and

the property owner. n Lets you know if listing agent has

agreement to vary the total commission paid if no cooperating office or if sale results by efforts of seller. n Does not impact what is offered to a cooperating office.

the listing broker’s offer of compensation.

Use of MLS Information n You cannot use the information from the

Know where You are Legally

MLS for any purpose other than the marketing of the property or to support a market evaluation or appraisal.

n Know the type of listing agreement.

n For example: If you offered moving

n ER - Exclusive Right n EA - Exclusive Agency n O - Open Listing

Compensation Offer n Some compensation must be offered to

cooperating office in order to submit to MLS.

Short Sales & Probate Sales n Recent changes in rules regarding “Short

Sales” and “Probate Sales” require that the REALTOR® offering compensation disclose the way in which the commission will be shared if there could be a reduction in compensation involved. 50/50 60/40 etc.

MLS Rule 7.15.2

Example of Remarks n Agent remarks section might state:

“Short Sale”. n Compensation subject to lender approval. n Any reduction split 50/50. n The listing broker may also choose a different allocation of any potential reduction (e.g. any reduction to be borne entirely by listing office (or cooperating office), or 25% of any reduction to be allocated to listing office and 75% by cooperating office, etc.).

Code Enforcement n The Association has joined forces with the

City and County Enforcement departments to help keep vacant properties in good condition. Problems can be reported to Bakersfield City Code Enforcement, 326-3712 or Kern County Enforcement, 862-8603.

For additional information, you can also logon to: http://www.bakersfieldcity.us/ cityservices/devsrv/codeenforce/index.htm

Showings & Negotiations n All negotiations are done through the

listing broker. n You must follow the procedures for showing property that are specified on the listing brokers data form. n Presentation of offers through the listing office.

Changes of Compensation n A cooperating broker cannot use the terms

of an offer to attempt to modify

services, you could not send advertisements for your services from data found in the MLS.

MLS Forms n MLS property data forms: Single Family/

Mobile Home/Condo-PUD, Residential Income, Lots and Land, Commercial/ Industrial, Commercial Lease, Business Opportunity, Farm and Ranch n Model Home n Residential Lease n Status Change Report: Seller to sign if a change in obligation or terms.

Showingtime® n New Member benefit – no additional cost n Link on listing page to assist with

scheduling to show appointments n Implementation 2/1/07

Courtesy when Showing Property n Always follow the instructions on the data

form. (Non-Correctable) n If you arrive at a property to show and another agent is showing, please remain outside or in your car until the other agent is done. n Don’t ask for access without using your own lock box key or a house key obtained from the listing office. n Always identify yourself. Provide your business card. n Always notify listing agent/office if you are not able to keep a showing appointment.

Portable Databases n Rapattoni Edge n Supra E-Key n MLS Touch (Local REALTOR®

Benefit)

Training & Practice on MLS n Classes available at the Association

Practice and prepare for your clients in advance. You never get a second chance to make a first impression.

MLS Forum n Q & A regarding the MLS

Billing Calendar n All billing notifications are issued via

email only n Due at the end of the following months: December, March, June & September

MEMBERSHIP ONBOARDING

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Property Descriptions

Important: This is not all-inclusive, but is provided as a Fair Housing reminder when writing any public or member only listing description. A rule of thumb is that the listing agent should promote the features of the listing and not use any language for describing the type of buyer or tenant, or the type of neighborhood.

UNACCEPTABLE n Able-bodied n Adult

Living Community n Adults Only n African n Agile n Asian n Black Neighborhood n Black Only n Catholic n Adult

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n Caucasian n Chicano n Chinese

n Christian n Colored n Couple

n Couples

Only Nesters (Ethnic References) n Exclusive (i.e.

Neighborhood) n Executive n Filipino n Healthy Only n Hispanic n Hungarian n Indian n Irish n Integrated n Jewish n Landlord (description of) n Latino n Mature Couple n Mature Person(s) n Mexican-American n Mormon Temple n Mosque n Must be Employed (Nationality) n Near Church(es) n Near Synagogue n Near Temple n Newlyweds n No AIDS n No Alcoholics n No Blacks n No Blind n No Children n No Crippled n No Deaf n No Drinkers n Empty

BAKERSFIELD ASSOCIATION OF REALTORS®

n No

Impaired Mentally Handicapped n No Mentally Ill n No Play Area n No Retarded n No Unemployed n Not for Handicapped n Older Person n One Child n One Person n Oriental n Physically Fit n Polish n Protestant n Puerto-Rican n Quiet Tenants n Sane Tenant Only n Shrine n Singles Only n Single Person n Stable n Tenant (description of) n White Neighborhood n White Only n No

CAUTION n Active

n Board

Approval Required n Close to __________ n Domestic Quarters n Female(s) Only n Female Roommate n Gender n Gentleman’s Farm n Grandma’s House n Golden Agers n Handyman’s

Dream n Male(s) Only n Male Roommate n Man (Men) Only

n Membership

Approval Required n Near _____________ n Near Country Club n No Students n Number of Person(s) n Prestigious n Quality Neighborhood n Quiet Neighborhood n Retirees n Secure n Seniors* n Senior Citizens* n Senior Housing n Single Woman/Man n Sophisticated n Students n Two People n Within Walking Distance n Woman (Women) Only

ACCEPTABLE n Credit

Check Required n Den n Equal Housing Opportunity n Family Room n First Time Buyer n Fixer-Upper n Great for Family n In-Law Apartment n Luxury Townhomes n Nanny Room n Near Mass Transit n Near Golf Course (Neighborhood Name) n Nice n No Drinking n No Drugs n No Drug Users n No Smoking n Number of Bedrooms n Nursery n Nursing Home n On Bus Route n Play Area n Privacy n Private Entrance n Private Setting n Quality Construction n Quiet n Reference Required (School District) (School Name) n Security Provided n Senior Discount n _______ Square Feet n Starter Home n Traditional Style n Tranquil Style n Verifiable Income n View of _________ n With View

MLS Dictionary Make Sure You Know Your Strategies of Property Status The association continues to receive an increasing number of inquiries as to the appropriate use of various property status options available through the MLS. In an effort to alleviate some of the confusion regarding those options, following is a list of status definitions for your new review and consideration:

“On-Market” Statuses

Active: A valid listing agreement is in effect and no offer (with or without contingencies) has been accepted.

Indicates availability of access to show or inspect the listed property.

Active - Contingent: Seller requests that the property remain in an “OnMarket” status and is looking for backup offers.

“Off-Market” Statuses

Contingent-Off Market: The sale is subject to court or other third party approval. (e.g. REO/Shortsale/Court) Pending: The Seller has accepted an offer and is not soliciting offers through the MLS. Withdrawn: A valid listing agreement is in effect; however, the property is no longer being marketed.

Canceled: Seller and listing Broker mutually agree to cancel.

Expired: the listing agreement has expired.

SOLD: Escrow has closed.

Leased: The property has been leased.

CITATION POLICYMLS To ensure the integrity of the MLS and MLS database, this Citation policy has been established in accordance with Section 14.3 of the MLS Rules and Regulations. Fines will be issued in accordance with this policy, and are subject to change upon approval by the Board of Directors. This policy is not all-inclusive, may not reflect violations of the Code of Ethics, and does not replace Professional Standards Enforcement.

Bakersfield Association of REALTORS® has instituted this Citation/Fine Policy to make a focused effort on bringing back the integrity of the MLS in the eyes of the members it serves.

SUMMARY OF CITATION AND FINE PROCESS A violation of the MLS Rules may be reported to the MLS Compliance Department by way of a “Whistle Blower” form, direct member report or staff investigation. If the violation is one that can be corrected, MLS Compliance Department shall send a Notice of Violation-Warning (NV-W) to the violating individual (“Violator”), responsible Broker Participant or Subscriber Participant (“Responsible Participant”), and acting Sales Manager. Violator must submit a Notice of Correction within two business days of the Receipt Date of the Notice of Violation and

Fine Assessment (NVFA) to the Violator and a copy of the Notice to the Responsible Participant and acting Sales Manager. If the violation of the MLS Rules is one that cannot be corrected, an NV-W is not sent to the Violator and Responsible Participant.

Instead, the NVFA will be sent to the Violator (with a copy to the Responsible Participant and acting Sales Manager). If, within fifteen (15) calendar days of the Receipt Date of NVFA, the fine is not paid or Request for Administrative Review (RAR), or a Request for Hearing (RH) with a $250 filing fee is not received, the MLS privileges of the Violator and the Responsible Participant will be suspended.

Examples of violations of the MLS Rules that cannot be corrected include, but not limited to, the following: (1) “Active Listing Without a Valid Listing Agreement”. Paragraph 8.2 of the MLS Rules and Regulations require the broker participant/subscriber to provide documentation to the MLS within one business day.

(2) “Mandatory Submission”. Paragraph 7.5 of the MLS Rules and Regulations requires that Broker participants shall input exclusive right to sell or exclusive agency listing on one to four unit residential property and vacant

lots… within two business days (excepting weekends, holidays and postal holidays). A violation of the Mandatory Submission rule or failure of Broker participant to submit Seller’s Authorization to Withhold Listing from MLS, at the time of listing, will result in an automatic NVFA. (3) “Failure to Secure Passcode”. Paragraph 12.13 of the MLS Rules and Regulations requires that participants and subscribers are responsible for the security of their passcodes and shall not give or allow use of or make available their passcodes to any person.

(4) “Failure to Comply with Lock Box Requirements”. Paragraph 13.6 of the MLS Rules and Regulations required Use of MLS Approved Lockbox. Participants and Subscribers who utilize lockboxes or other access devices (and so indicate on the MLS) shall use the designated or authorized lockbox required by the MLS where the listing is submitted. More than one lockbox or access device may be used on a property as long as one of them is the lockbox designated or authorized by the MLS where the listing is submitted.

REPORTING A VIOLATION Reports of violations can be made by faxing to: (661) 635-2317 or email to MEMBERSHIP ONBOARDING

13

MLSViolaton@bakersfieldrealtor.org Reports must include the following information: n Name and office of the alleged Violator n Nature of the violation(s) (be as specific as possible, i.e. when it occurred, the MLS #, etc.) n Reporter’s name and contact information is FOR VERIFICATION PURPOSES ONLY AND WILL BE KEPT IN STRICT CONFIDENCE.

responsible for fines and violations that

business days.

occurred whil the Violator was employed

DUE DATE FOR FINES Fines are due within fifteen (15) business days of the Receipt Date set forth on the NVFA. Receipt is presumed two (2) business days after mailing or one (1) business day after facsimile or e-mail transmission. If a notice is sent by more than one method, the earlier Receipt Date applies.

VIOLATIONS AND FINES First Offense within a 6-month period: $250; Second Offense within a 6-month period: $500; Third Offense within a 6-month period: $1,000; More than three offenses within a 6-month period constitute grounds for

NONPAYMENT RESULTS

additional disciplinary action, including suspension or expulsion from the MLS, after an appropriate hearing as provided in the California Code of Ethics and Arbitration Manual.

as follows:

RESPONSIBILITY FOR VIOLATIONS AND FINES The violating Broker Participant, Appraiser Participant, Subscriber or clerical user (the “Violator”) shall be responsible for paying the fine and correcting the violation. If the Violator is a Subscriber or clerical user, the Broker Participant or Appraiser Participant through whom the Violator has access to the MLS at the time the violation occurred (the “Responsible Participant”) shall be also responsible to pay the fine and/or correct the violation including any fine for failure to correct the violation. If the Violator shall become employed or associated with another Broker Participant or Appraiser Participant, the Responsible Participant shall no longer be liable for any fine imposed against the Violator but shall still be liable to correct any violation (and pay any fine for failure to correct the violation) to the extent the Responsible Participant has the ability to do so.

The new Broker Participant or Appraiser Participant shall not be liable for the Violator’s fines incurred and assessed prior to the Violator becoming employed or associated with the new Broker Participant or Appraiser Participant, but shall only be

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BAKERSFIELD ASSOCIATION OF REALTORS®

by or associated with the new Broker Participant. The Violator’s history shall apply to the new Broker Participant or Appraiser Participant for the purposes of determining liability for fines and violations occurring after the violation becomes employed by or associated with the new Broker Participant or Appraiser Participant.

IN MLS SUSPENSION Failure to pay a fine, unless an administrative review or a hearing is requested as set forth below, will result in suspension of MLS privileges of the Violator and/or Responsible Participant, pursuant to Paragraph 17.1 of the MLS Rules and Regulations, which reads “17.1 Nonpayment of MLS Fees. If MLS fees, fines, charges or other amounts owed the MLS are not paid within one month after the due date, the nonpaying participant and/or subscriber’s MLS services shall be subject to suspension until such outstanding amounts are paid in full. The MLS may suspend MLS services under this section provided the MLS gives the participant and/ or subscriber at least fifteen (15) calendar days prior notice of the proposed suspension date. Such notice may be included with the original billing statement for MLS fees, remain unpaid for three months after the due date, the nonpaying participant MLS services shall automatically terminate regardless if notice of such termination is given.”

NOTICE OF VIOLATION For purposes of this policy, MLS Compliance Department shall send Notice of ViolationWarning (NV-W) to the violating individual (“Violator”), responsible Broker Participant or Subscriber Participant (“Responsible Participant”), and acting Sales Manager.

If the Violator is a Subscriber or clerical user, a copy of the notice will be sent to the Responsible Participant.

CALCULATING TIME PERIODS Time to submit or report under the MLS Rules & Regulations is counted as business days (weekends and holidays are excluded).

Time to correct violations is counted as

MULTIPLE AND REPEAT VIOLATIONS If a NVFA includes multiple violations, fines will be assessed on a per listing basis.

REPEAT VIOLATIONS If, within a six (6) month period, the Violator is issued two NV-W for violation of the same MS Rule, the second NV-W will result in an AUTOMATIC Notice of Violation and Fine Assessment (assuming that the violation(s) is one that can be corrected).

RIGHT TO DISPUTE NOTICE OF VIOLATION AND FINE ASSESSMENT There are two alternative procedures for disputing a Notice of Violation and Fine Assessment (NVFA): (1) the Violator may request an administrative review without any fee, and if the citation is upheld, the fine is limited to the amount or adjusted amount in the NVFA; or (2) the Violator may pay a $250 filing fee and request a hearing, and if the citation is upheld, the fine amount in the NVFA may be increase and additional sanctions may be imposed. FAILURE TO TIMELY SUBMIT EITHER A COMPLETED REQUEST FOR ADMINISTRATIVE REVIEW (RAR) FORM OR A COMPLETED REQUEST FOR HEARING (RH) FORM WITH THE $250 FILING FEE WILL RESULT IN THE CITATION BEING DEEMED FINAL WITHOUT ANY FURTHER NOTICE, AND THE VIOLATOR’S MLS MAY BE SUSPENDED FOR THE PRESCIVED PERIOD. ADMINISTRATIVE REVIEW To dispute a NVFA, the Violator may request an administrative review by the MLS Quality Assurance Task Force, a subcommittee of the Professional Standards Committee.

The MLS Quality Assurance Task Force, a subcommittee of the Professional Standards Committee. The MLS Quality Assurance Task Force is comprised of one or more panels of not less than three (3) nor more than five

(5) REALTORSÂŽ.

The Violator must first correct the violation and submit a Notice of Correction if the violation is one that can be corrected.

Then, within fifteen (15) calendar days of the Receipt Date of the NVFA, the Violator may submit a Request for Administrative Review (RAR) Form. No fee is required for an administrative review.

The RAR form must state the specific ground(s) for the review and include all and/ or reasons for the request. The grounds for an administrative review are one or more of the following: n Factual dispute regarding the alleged violation(s) such as misapplication of the MLS Rule(s) cited. n Contention that there has been a violation of procedural due process.

(NOTE: FAILURE TO RECEIVE ANY NOTICE IS NOT GROUNDS FOR ADMINISTRATIVE REVIEW) If the grounds set fort are proper grounds for a review, the MLS Quality Assurance Task Force wil review the documentation. No formal hearing is held and no appearance by the Violator is required.

Written Notice of Administrative Review Decision by the MLS Quality Assurance Task Force will be sent to the Violator within thirty (30) business days of receipt of the RAR.

In the event the MLS Quality Assurance Task Force determines that no violation(s) occurred, the fine will be withdrawn. In the event the MLS Quality Assurance Task Force determines that there has been a procedural due process violation, the MLS Quality Assurance Task Force may return the matter to MLS Compliance Department, or dismiss the matter.

REQUEST FOR HEARING To dispute a Notice of Violation and Fine Assessment (NVFA), the Violator may request a hearing before the Professional Standards Committee.

The Violator must first correct the violation and submit a Notice of Correction if the violation is one which can be corrected.

Then, within fifteen (15) calendar days of the Receipt Date of the NFVA, the Violator may submit a Request for Hearing (RH) form with a $250 filing fee.

The RH form must state the specific ground(s) for the hearing and include all facts and/or reasons for the request. The grounds for a hearing are one or more of the following: n Factual dispute regarding the alleged violation(s) such as misapplication of the MLS Rule(s) cited. n Contention that there has been a violation of procedural due process.

(NOTE: FAILURE TO RECEIVE ANY NOTICE

IS NOT GROUNDS FOR ADMINISTRATIVE REVIEW) If the grounds set forth are proper grounds for a hearing, BAofR will set a hearing in accordance with the California Code of Ethics and Arbitration Manual. The Violator may, but is not required to, attend the hearing.

In the event the hearing panel determines that the violation(s) occurred, the $250 filing fee will be retained as a cost for administration of the hearing and will not apply toward the payment of any fines. The fine in the NVFA OR SUCH INCREASED FINE AS IS IMPOSED BY THE HEARING PANEL will be payable in full by the date noticed in the decision, and the Violator may be required to comply with ADDITIONAL DISCIPLINE AND SANCTIONS AS MAY BE IMPOSED BY THE HEARING PANEL in accordance with the California Code of Ethics and Arbitration Manual. The sanctioning guidelines are set forth on the back of the RH form.

In the event the hearing panel determines that no violation(s) occurred, the filing fee will be returned. In the event the hearing panel determines that there has been a procedural due process violation, the hearing panel may refund the filing fee and either return the matter to Staff (MLS Compliance Department) or dismiss the citation.

GEMLS, INC. Citation/Fine Policy Adopted 3/10/06. Revised 6/12/13 MEMBERSHIP ONBOARDING

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THE A TEAM

We have a special group of individuals who form a group of loyal, hard-working Affiliate Members called the A Team, who serve the Association in a variety of ways. Thank you for supporting our REALTORS®

SUZI BEATY, CHAIR Fidelity National Home Warranty 661.477.3906 suzi.beaty@fnf.com

DAN ARDIS, VICE-CHAIR San Joaquin Valley Mortgage 661.342.9381 danardis@sjvalleymortgage.com

DEANA WITWER Built Right Home Inspection 661.377.7777 deana@BuiltRightHI.com

JEFF AGUILERA RightStart Mortgage 661.578.9259 jaguilera@rightstartmortgage.com

MIKE GEORGE Agape Mortgage 661.324.2427 mikegeorge@agapemtgco.com

SHARI GEORGE Agape Mortgage 661.324.2427 sharigeorge@agapemtgco.com

MARY GUNSOLUS Cali Building & Home Inspection 661.829.5810 calibuildinghomeinspections@gmail.com

LISA HOOK-ESTES RightStart Mortgage 661.301.5472 Lisa4aloan@gmail.com

MISTY JEFFRIES Placer Title 661-345-2240 mjeffries@placertitle.com

CHEREYL NUNN Loan Depot 661.270.8601 cnunn@loandepot.com

JANETTE RAMSEY Janette Ramsey Insurance 661.328.9250 janette@jramseyinsurance.com

KAMRI ROBERSON Ticor Title 661-246-5947 Kamri.roberson@ticortitle.com

SARAH TUCKER Home Warranty of America 661.337.0362 sarah.simmons@hwahomewarranty.com

PAUL STEELE First American Title 661-302-7117 psteele@firstam.com

JAMIE TRAMMELL At Home Inspections 661.472.0202 jrtrammelljr@yahoo.com

BARBARA WELLS San Joaquin Valley Mortgage 661.703.2227 bwells@sjvalleymortgage.com

CODE OF

ETHICS

REALTORS® PLEDGE OF PERFORMANCE AND SERVICE The NATIONAL ASSOCIATION OF REALTORS adopted the Code of Ethics ®

in 1913, following the professions of medicine, law, and engineering.

REALTORS® are real estate professionals who have chosen to join the National Association and abide by its strict Code of Ethics.

What does this mean to you? It means that any REALTOR® with whom you work

DUTIES TO CLIENTS AND CUSTOMERS Article 1

REALTORS® protect and promote their clients’ interests while treating all parties honestly.

Article 2 REALTORS® refrain from exaggeration, misrepresentation, or concealment of pertinent facts related to property or transactions.

Article 3

of Ethics, based on professionalism and

REALTORS® cooperate with other real estate professionals to advance their clients’ best interests.

protection of the public.

Article 4

has voluntarily agreed to abide by a Code

REALTORS® are subject to disciplinary action and sanctions if they violate the duties imposed by the Code of Ethics.

The Code of Ethics is a detailed document that spells out the professional responsibilities of every REALTOR®.

Do not hesitate to ask a REALTOR® for a copy of the Code, including the Standards of Practice. The Code is your assurance of dealing with a professional who has your best interests in mind.

The Code of Ethics consists of seventeen Articles and related Standards of Practice.

The basic principles of the Code are summarized below.

Please note that the following is not a substitute for the Code, but simply a general overview of the Code’s key principles. For additional information about the Code of Ethics and its enforcement, speak with a REALTOR® or contact the local association of REALTORS® nearest you.

When buying or selling on their own account or for their families or firms, REALTORS® make their true position or interest known.

Article 5 REALTORS® do not provide professional services where they have any present or contemplated interest in property without disclosing that interest to all affected parties.

Article 6 REALTORS disclose any fee or financial benefit they may receive from recommending related real estate products or services. ®

Article 7 REALTORS® accept compensation from only one party, except where they make full disclosure to all parties and receive informed consent from their client.

Article 8 REALTORS® keep the funds of clients and customers in a separate escrow account.

Article 9 REALTORS® make sure that details of agreements are spelled out in writing whenever possible and that parties receive copies.

DUTIES TO THE PUBLIC Article 10

REALTORS® give equal professional service to all clients and customer irrespective of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® do not discriminate in their employment practices.

Article 11 REALTORS® are knowledgeable and competent in the fields of practice in which they engage or they get assistance from a knowledgeable professional, or disclose any lack of expertise to their client

Article 12 REALTORS® are honest and truthful in their communications and present a true picture in their advertising, marketing, and in other public representations.

Article 13 REALTORS® do not engage in the unauthorized practice of law.

Article 14 REALTORS® willingly participate in ethics investigations and enforcement actions.

Article 15 REALTORS® make only truthful, not misleading, comments about other real estate professionals.

Article 16 REALTORS® respect the exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with their clients.

Article 17 REALTORS® arbitrate and mediate financial disagreements with other REALTORS® and with their clients.

YOU BE THE JUDGE

QUESTION: Presentation of

subsequent offers after an offer to purchase had been accepted by the Seller REALTOR® A, the listing broker, presented an offer to purchase to his client, Seller X, which was $20,000 less than the property’s listed price. The property had been on the market for several months and had not generated much interest. In his presentation, REALTOR® A told Seller X that, in his opinion, the offer was a good one and Seller X should consider accepting it. “With interest rates on their way up again,” said REALTOR® A, “properties are just not moving the way they did six months ago.” Seller X decided to accept the offer and the transaction closed. Several months after the sale, Seller X filed a complaint against REALTOR® A alleging a violation of Article 1, as interpreted by Standard of Practice 1-7.

It had come to Seller X’s attention that a second offer had been made on the property after Seller X had accepted the first offer but prior to closing. This second offer, alleged Seller X, had not been submitted to him by REALTOR® A and was for $2,500 more than the first offer. Seller X’s complaint stated that

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BAKERSFIELD ASSOCIATION OF REALTORS®

by not presenting the second offer to him, REALTOR® A had not acted in his (the seller’s) best interest, as required by Article 1.

At the hearing, REALTOR® A produced a copy of the listing contract, which contained a provision reading: “Seller agrees that Broker’s responsibility to present offers to purchase to Seller for his consideration terminates with Seller’s acceptance of an offer.” REALTOR® A told the Hearing Panel that he had explained this provision to Seller X at the listing presentation and that Seller X had agreed to it, as indicated by Seller X’s signature on the listing contract.

Seller X admitted that he had understood and agreed to the provision at the time he listed the property, but he felt that REALTOR® A should have advised him of the second, higher offer nonetheless.

QUESTION: Disclosure of Existence

of Offers to Prospective Purchasers Seller S listed her home for sale with REALTOR® B. The property was priced reasonably and REALTOR® B was confident it would sell quickly. The listing agreement included the seller’s authorization for publication in the MLS and authority

to disclose the existence of offers to prospective purchasers.

Within days, REALTOR® B had shown the property to several prospective purchasers and one of them, Buyer Z, wrote a purchase offer at close to the asking price.

REALTOR® B called Seller S to make an appointment to present the offer.

After hanging up with Seller S, REALTOR® B received another call, this time from REALTOR® A. REALTOR® A explained that he represented a buyer who was interested in making an offer on Seller S’s property.

REALTOR® A explained that while his buyer-client was quite interested in the property, price was also a concern. He asked REALTOR® B if there were other offers on the property, indicating that his buyer-client would likely make a higher offer if there were competing offers on the table. REALTOR® B responded telling REALTOR® A, “That’s confidential information. Please tell your client to make his best offer.”

Taken aback by REALTOR® B’s comments, REALTOR® A shared them with his buyerclient, who chose not to make an offer and instead pursued other properties.

Buyer Z’s offer was accepted by Seller S

later that evening and, sometime later, the transaction closed.

Several months afterward, Seller S and REALTOR® A met at a social event. REALTOR® A related his conversation with REALTOR® B. Seller S asked REALTOR® A if he thought that REALTOR® A’s buyer-client would have made an offer on Seller S’s home absent REALTOR® B’s refusal to disclose whether there were other offers pending. REALTOR® A responded that it was impossible to tell for certain, but his buyer-client had certainly not been favorably impressed by REALTOR® B’s response to a seemingly routine question.

Seller S subsequently filed an ethics complaint against REALTOR® B alleging violation of Article 1 as interpreted by Standard of Practice 1-15. He noted that

engaged the services of REALTOR® R as a buyer representative. Seller S’s property was one of several REALTOR® R introduced to Buyer X. After the third showing, Buyer B was ready to make an offer and requested REALTOR® A’s assistance in writing a purchase offer.

REALTOR® A helped Buyer B prepare an offer and then called Seller S to make an appointment to present the offer that evening.

Later that same afternoon, REALTOR® R called REALTOR® A and told him that he was bringing a purchase offer to REALTOR® A’s office for REALTOR® A to present to Seller S. REALTOR® A responded that he would present Buyer X’s offer that evening.

That evening, REALTOR® A presented both

turn, filed an ethics complaint alleging that REALTOR® A’s comments had intentionally cast Buyer X’s offer in an unflattering light, that his comments about buyer representatives hindering the closing process had been inaccurate and unfounded, and that REALTOR® A’s presentation of the offer had been subjective and biased and in violation of Article 1 as interpreted by Standard of Practice 1-6.

At the hearing, REALTOR® A tried to justify his comments, noting that although he had no personal knowledge of Buyer X’s financial wherewithal and while he hadn’t had a bad experience dealing with represented buyers, it was conceivable that an overzealous buyer representative could raise obstacles that might delay a closing. In response

he had clearly authorized REALTOR® B to disclose to buyers and cooperating brokers the existence of pending offers and that REALTOR® B’s arbitrary refusal to share information he was authorized to share could have been the reason, or part of the reason, why REALTOR® A’s client had chosen not to make an offer on Seller S’s home.

REALTOR® B defended his actions indicating that while he agreed that he had an obligation to promote Seller S’s interests, his obligation to REALTOR® A and to REALTOR® A’s buyer-client was simply to be honest. He had not, in any fashion, misrepresented the availability of Seller S’s property. Rather, he had simply told REALTOR® A to encourage his client to make her best offer. “I’m not required to turn every sale into an auction, am I?” he asked rhetorically. “I feel that I treated all parties honestly and fairly,” he concluded.

offers to Seller S for his consideration. Seller S noted that both offers were for the full price and there seemed to be little difference between them. REALTOR® A responded, “I’m not telling you what to do, but you might consider that I have carefully pre-qualified Buyer B. There’s no question but that she’ll get the mortgage she’ll need to buy your house. Frankly, I don’t know what, if anything, REALTOR® R has done to pre-qualify his client. I hope he’ll be able to get a mortgage, but you never can tell.” REALTOR® A added, “Things can get complicated when a buyer representative gets involved. They make all sorts of demands for their clients and closings can be delayed. You don’t want that, do you? Things are almost always simpler when I sell my own listings,” he concluded.

Seller S, agreeing with REALTOR® A’s reasoning, accepted Buyer B’s offer and the transaction closed shortly thereafter.

Upset that his purchase offer hadn’t been accepted, Buyer X called Seller S directly and asked, “Just to satisfy my curiosity, why didn’t you accept my full price offer to buy your house?” Seller S explained that he had accepted another full price offer, had been concerned about Buyer X being able to obtain the necessary financing, and had been concerned about delays in closing if a buyer representative were involved in the transaction.

Buyer X shared Seller S’s comments with REALTOR® R the next day. REALTOR® R, in

to REALTOR® R’s questions, REALTOR® A acknowledged that his comments to Seller S about Buyer X’s ability to obtain financing and the delays that might ensue if a buyer representative were involved were essentially speculation and not based on fact.

QUESTION: Multiple Offers to be Presented Objectively REALTOR® A listed Seller S’s house. He filed the listing with the MLS and conducted advertising intended to interest prospective purchasers. Seller S’s house was priced reasonably and attracted the attention of several potential purchasers.

Buyer B learned about Seller S’s property from REALTOR® A’s Web site, called REALTOR® A for information, and was shown the property by REALTOR® A several times.

Buyer X, looking for property in the area,

QUESTION: Obligation to Disclose Defects Seller A came to REALTOR® B’s office explaining that his company was transferring him to another city and he wished to sell his home. In executing the listing contract, Seller A specified that the house had hardwood floors throughout and that the selling price would include the shutters and draperies that had been custom made for the house.

Seller A said that he would like to continue to occupy the house for 90 days while his wife looked for another home at his new location, and agreed that REALTOR® B could show the house during this time without making a special appointment for each visit.

Accordingly, REALTOR® B advertised the house, showed it to a number of prospective buyers, and obtained a purchase contract from Buyer C. Settlement was completed and at the expiration of the 90-day period from the date of listing, Seller A moved out and Buyer C moved in.

On the day that Buyer C moved in, seeing the house for the first time in its unfurnished condition, he quickly observed that hardwood flooring existed only on the outer rim of the floor in each room that

MEMBERSHIP ONBOARDING

19

had been visible beyond the edges of rugs when he inspected the house, and that the areas that had been previously covered by rugs in each room were of subflooring material. He complained that REALTOR® B, the listing broker, had misrepresented the house in his advertisements and in the description included in his listing form which had specified “hardwood floors throughout.”

Buyer C complained to REALTOR® B, who immediately contacted Seller A. REALTOR® B pointed out that the house had been fully furnished when it was listed and Seller A had said that the house had hardwood floors throughout. Seller A acknowledged that he had so described the floors, but said the error was inadvertent since he had lived in the house for ten years since it had been custom built for him. He explained that in discussing the plans and specifications with the contractor who had built the house, the contractor had pointed out various methods of reducing construction costs, including limiting the use of hardwood flooring to the outer rim of each room’s floor. Since Seller A had planned to use rugs in each room, he had agreed, and after ten years of living in the house with the subflooring covered by rugs, he had “simply forgotten about it.”

REALTOR® B explained, however, that Seller A’s description, which he had accepted, had resulted in misrepresentation to the buyer. “But it’s a small point,” said Seller A. “He’ll probably use rugs too, so it really doesn’t make any difference.” After further pressure from REALTOR® B for some kind of adjustment for Buyer C, Seller A

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concluded, “It was an honest mistake. It’s not important. I’m not going to do anything about it. If Buyer C thinks this is a serious matter, let him sue me.”

REALTOR® B explained Seller A’s attitude to Buyer C, saying that he regretted it very much, but under the circumstances could do nothing more about it. It was at this point that Buyer C filed a complaint with REALTOR® B’s Board.

QUESTION: Obligation to Ascertain Pertinent Facts Shortly after REALTOR® A, the listing broker, closed the sale of a home to Buyer B, a complaint was received by the Board charging REALTOR® A with an alleged violation of Article 2 in that he had failed to disclose a substantial fact concerning the property. The charge indicated that the house was not connected to the city sanitary sewage system, but rather had a septic tank.

In a statement to the Board’s Grievance Committee, Buyer B stated that the subject was not discussed during his various conversations with REALTOR® A about the house. However, he pointed out that his own independent inquiries had revealed that the street on which the house was located was “sewered” and he naturally assumed the house was connected. He had since determined that every other house on the street for several blocks in both directions was connected. He stated that REALTOR® A, in not having disclosed this exceptional situation, had failed to disclose a pertinent fact.

REALTOR® A’s defense in a hearing before a Hearing Panel of the Professional

Standards Committee was: 1. That he did not know this particular house was not connected with the sewer; 2. That in advertising the house, he had not represented it as being connected; 3. That at no time, as Buyer B conceded, had he orally stated that the house was connected; 4. That it was common knowledge that most, if not all, of the houses in the area were connected to the sewer; and 5. That the seller, in response to REALTOR® A’s questions at the time the listing was entered into, had stated that the house was connected to the sewer.

QUESTION: Ascertainment and Disclosure of Pertinent Facts Mrs. A, a retired college professor, came to the office of REALTOR® B, a cooperating broker, in search of a large house in which she could occupy a small apartment, using the remainder of the building to operate a residential club for graduate students. What she had in mind was a deluxe “rooming house” in which the tenants would have use of a parlor, dining room, kitchen, and laundry.

She felt confident, from previous experience in the community, that she could obtain from 10 to 16 “roomers”, and indicated that she would be guided in her charges to the tenants by the amount of mortgage payments she would have to make.

Most of the large houses on the market were inadequate. Finally, REALTOR® B located a massive old mansion listed with REALTOR® C that appealed to Buyer A.

After repeated visits to the house and after discussing financing with a local lending institution, Buyer A said she was interested in the house if it could accommodate as many as 11 tenants. REALTOR® B accompanied her for another inspection to check on this point.

By planning double occupancy of the large bedrooms she found she could accommodate eight roomers. In addition, there were three small rooms upstairs that had been used for storage which REALTOR® B suggested might make acceptable single rooms. Buyer A agreed, and the sale was made.

Two months later, the buyer filed a complaint with the local Board, charging REALTOR® B with failing to disclose pertinent facts. The complaint alleged that REALTOR®

that the property could be utilized as a residential club.

B knew the buyer was taking on a substantial obligation with the expectation of housing 11 persons in the structure; that REALTOR® B had suggested that three rooms might make acceptable single rooms; and that she had been subsequently advised by the building department that these rooms could not be used as dwelling rooms since the windows were too small to meet code requirements.

She had been advised that it would cost $1,480 to replace the windows. She charged REALTOR® B with negligence in not advising her of this deficiency. After reviewing the complaint, the Grievance Committee referred it for hearing before a Hearing Panel of the Professional Standards Committee.

At the hearing, REALTOR® B acknowledged the facts set out in Buyer A’s complaint, but advised that the complaint did not state all of the relevant facts. With respect to the house in question, as with many other houses shown to Buyer A, he had made a special check at city hall as to zoning regulations to be sure that the kind of occupancy intended by the buyer would be lawful; that the buyer’s specifications were unusual and that in attempting to meet them, he had devoted an unusual amount of time and effort to help her realize her objective; and that he had acted in good faith and had not deliberately failed to disclose any pertinent fact but had, in fact, urged the buyer to consult with an engineer and to check with the zoning authorities prior to making an offer to ensure

the past three months.

REALTOR® A thought this was low. His analysis of MLS data showed his market share was 11%. REALTOR® A filed an ethics complaint against REALTOR® Z citing Article 15 of the Code of Ethics in that REALTOR® Z’s “obviously understated market share claim” was a “misleading statement about competitors.” REALTOR® A’s complaint was considered by the Grievance Committee which determined that an ethics hearing should be held.

At the hearing, REALTOR® Z testified he had always been truthful in his advertising and that all claims were based in fact. He produced an affidavit from the Board’s MLS administrator which indicated that a programming error had resulted in miscalculations and, after careful recomputation, REALTOR® A’s market share over the past three months had been 10.9%.

The administrator’s statement noted that this was the first time that information related to REALTOR® A’s listings or sales had been misstated on the system. “I relied on information from the MLS. It’s always been accurate and I had no reason to even suspect it was wrong last month,” said REALTOR® Z in his defense.

The Hearing Panel agreed with REALTOR® Z’s logic, noting that a REALTOR® should be able to rely on generally accurate information from reliable sources. They reasoned that if, on the other hand, the MLS had shown

QUESTION: Knowing or Reckless False Statements About Competitors REALTOR® A operated a residential brokerage firm in a highly competitive market area. He frequently used information from the MLS as the basis for comparative ads and to keep close track of his listing and sales activity as well as his competition.

One day, while reviewing MLS data and comparing it to a competitor’s ad, REALTOR® A noticed that REALTOR® Z had used a diagram to demonstrate his market share, contrasting it with those of several other firms. The ad showed that REALTOR® A had listed 10% of the properties in the MLS over

REALTOR® A having, for example, 1% of the market, then REALTOR® Z’s reliance on the information would have been “reckless” because REALTOR® A had generally had a 10–15% market share and a reasonable conclusion would have been that the information from the MLS was seriously flawed.

QUESTION: Dealings Initiated

by Another Broker’s Client REALTOR® A, a residential broker, had recently listed a home. REALTOR® A’s marketing campaign included “open houses” on several consecutive weekends.

One Sunday afternoon Buyer B came to the open house. REALTOR® A introduced herself to Buyer B and asked whether Buyer B was working with another broker. Buyer B responded that he was, in fact, exclusively represented but went on to add that he was quite familiar with the property as it had been previously owned by a close personal friend.

REALTOR® A told Buyer B that she would be happy to show Buyer B through the home but reminded Buyer B that she represented the seller and not Buyer B. After viewing the home, Buyer B indicated that he had pressing business travel plans, was seriously interested in the property, and requested REALTOR® A’s assistance in preparing a purchase offer. REALTOR® A assisted Buyer B in filling out a standard form purchase contract and later that day presented the offer to the seller who accepted it.

REALTOR® A was subsequently charged with violating Article 16 for dealing and negotiating with a party who had an exclusive relationship with another REALTOR®.

At the hearing, REALTOR® A defended her actions noting that she had told Buyer B that she was the seller’s exclusive agent and, as such, would not and could not represent Buyer B’s interests. She pointed out that it was only after Buyer B had insisted on writing a purchase offer without the assistance of his exclusive representative that REALTOR® A had agreed to do so. She concluded her defense noting that Standard of Practice 16-13 authorizes dealings with the client of another broker in cases where those dealings are initiated by the client.

MEMBERSHIP ONBOARDING

21

Organized

REAL ESTATE REALTOR® Strength

– www.bakersfieldrealtor.com

n Member

Three-Way Agreement More than

National Association of REALTORS® Resources

n Education

100 Years of Success n National

Association of REALTORS®

n Realtor.com

— 2008 n California

Association of REALTORS

n Political

®

n Government

— 2005 n Bakersfield

Association of REALTORS®

— 2005

through professionalism and service.”

Advancement – Education

and ethics enforcement – ZipForms®6, Docusign

n Services

– Technology

®

Advocacy

Public Awareness —

website: www.realtor.org - REALTOR® Property Resource

California Association of REALTORS® Resources

“Improving the real estate industry

n Products

n REALTOR n RPR

REALTORS® Shared Purpose and Values

n Professional

Activities

n Website: n Legal

www.car.org

Hotline: (213) 739-8282

Services

n Gathering

place for REALTORS® physical

and virtual

Bakersfield Association of REALTORS® Committees Representing Bakersfield in C.A.R. LEADERSHIP Past C.A.R. Presidents Bob Karpe & Jim Antt Directors for Life: John J. Garone, Bob Karpe, Jim Antt and Nancy Sewell 2020 C.A.R. President: Jeanne Radsick

Monday - Friday 9 am to 6 pm, Saturday

2020 Region 12 Chair: Sheri Anthes

– 9 am to 12pm

C.A.R. Directors: Athena Collup, David

n Legal

Knoeb, Scott Knoeb, Ronda Newport,

n Hot

Q&A’s & Briefs

topics of concern to REALTORS®

Theresa Olson, and Derek Sprague

REALTORS® Staying Informed

and property owners

Chief Executive Officer: Kim Huckaby

n REALTOR®

n ZipForms

Government Affairs Consultant:

n California

Magazine

Real Estate Magazine

n Bakersfield

REALTOR Magazine ®

Members Only n NAR

– www.realtor.org

n C.A.R.

– www.car.org

n Bakersfield

22

Association of REALTORS

®

BAKERSFIELD ASSOCIATION OF REALTORS®

®

Bakersfield Association of REALTORS® Resources

Jenifer Pitcher

n website:

www.bakersfieldrealtor.org

2020 President: Ronda Newport,

n Conduit

to C.A.R. and NAR services

Watson Realty ERA

Association Officers

n Real

Estate Store

2020 President-Elect: Scott Knoeb,

n MLS

Support

Frontier Real Estate Services, Inc.

2018 Vice-President: Anna Albiar,

long-term reputation for success in DC

n Keeping

Coldwell Banker Preferred, RLT

n Preserving

Dual Agency

- setting up “grass roots” efforts.

2018 Secretary - Treasurer: Wayland

n Preserving

Mortgage Interest

Louie, RE/MAX Golden Empire

Deductibility

Immediate Past President: Athena Collup,

n Keeping

If we don’t speak for real estate, who will?

$

banks out of real estate.

8,000 Homebuyer Tax Credit

Miramar International, Mill Rock

n

Association Directors Nik Boone, Ascend Real Estate

Connecting Communities to Capitol Hill

Michele Cooper, Karpe Real Estate Center

The REALTOR® Building in

Martha Johnson, Watson Realty ERA

Washington, D.C.

Bill Mell, Miramar International, Coffee

California Association of REALTORS® Sacramento

Kym Plivelich, Marcom Real Estate Glenn Porter, RE/MAX Golden Empire Brian Tuttle, Coldwell Banker Preferred, RLT Michelle Valverde, Wyrick & Associates Real Estate

REALTORS Active in Politics ®

n Positive

action to protect our

n REALTOR®

Governmental office

in Sacramento n Grass

Legislative Day

n Training

for local GADs

n C.A.R.’s

non-profit partisan REALTOR®

business climate

Action Fund

n Protecting

The Voice for Real Estate in Bakersfield/Kern County

n Keeping n Avoid

private property rights

home ownership possible

restrictive legislation

Call to Action… Leading by Example n REALTOR® n Broker n Red

Action Fund

Involvement Program

Alerts

National Association of REALTORS® Washington n Chief

®

n City

Council

n Board

of Supervisors

n City/County n REALTOR®

and County officials rely on our

association for input… to seek the counsel of REALTORS® n We

get on our soapbox when necessary

The Voice for Real Estate in Bakersfield and Kern County REALTOR® Public Awareness

Public Image n Equal

Opportunity

n Scholarship

roots structure

n Annual

n City

you informed on issues pending

Planning Commissions

relationship with local, state

and federal representatives.

Fund

n Kern

Economic Development Corp.

n Kern

County Farm Bureau

n Downtown

& Hispanic Chamber

of Commerce n Better

Business Bureau

n Kern

County Board of Trade

n Boys

and Girls Club

Show Your REALTOR® Pride Videos n Pathways

to Professionalism

n Safety n Anti-Trust n Fair

Housing

Lobbyist

MEMBERSHIP ONBOARDING

23

FAIR HOUSING

Provide equal professional service without regard to the race, color, religion, sex, handicap, familial status, or national origin of any prospective client, customer, or of residents of any community.

24

BAKERSFIELD ASSOCIATION OF REALTORS®

JOHN 3:16

REALTOR® FAIR HOUSING DECLARATION I agree to:

Provide equal professional service without regard to the race, color, religion, sex, handicap, familial status, or national origin of any prospective client, customer, or of residents of any community.

Keep informed about fair housing law and practices, improving my clients’ and customers’ opportunities and my business.

Develop advertising that indicates that everyone is welcome and no one is excluded; expanding my clients’ and customers’ opportunities to see, buy or lease property.

Inform my clients and customers about their rights and responsibilities under the fair housing laws by providing brochures and other information.

Document my efforts to provide professional service, which will assist me in becoming a more responsive and successful REALTOR®.

Refuse to tolerate non-compliance.

Learn about those who are different from me and celebrate those differences.

Take a positive approach to fair housing practices and aspire to follow the spirit as well as the letter of the law.

Develop and implement fair housing practices for my firm to carry out the spirit of this declaration.

Fair Housing

Fair Housing refers to: _________________ ______________________________________ _____________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ The Federal Fair Housing Act (FFHA) prohibits licensees who provide brokerage or appraisal services in the sale or rental of dwellings to indicate a discriminatory preference, either intentionally or unintentionally, based on: a. ____________________________________ ______________________________________ b. ____________________________________ ______________________________________ c. ____________________________________ ______________________________________ d. ____________________________________ ______________________________________ e. ____________________________________ ______________________________________ f. ____________________________________ ______________________________________ g. ____________________________________ ______________________________________ ______________________________________

Acts Prohibited

by Fair Housing Law The following acts are illegal if they are based on race, color, religion, sex or national origin: n Refusing to ______________________ or ________________________; refusing to negotiate for the sale or rental of; or denying a dwelling. n Discriminating in the _________________ _____________________________________ and _________________________ for buying or renting or in the provision of services or facilities. n ____________________________________ a dwelling for sale or rent in a way that indicates a preference based on race, color, religion, sex or national origin ____________ ______________________________________ ______________________________________ _____________________________________ n Representing that a dwelling is not _____ _____________________________________ for inspection for sale or rental when in fact

it is available. n Persuading someone to sell or rent because of the entry or prospective entry into the neighborhood or person of a particular race, color, religion, sex or national origin. n Denying person’s ____________________ ______________________________________ ______________________________________ ______________________________________ or participation in any multiple listing service, real estate brokers’ organizations, or other facility related to the sale or rental of housing as means of discrimination. n Denying ____________________________ or offering less desirable terms and conditions for home loans by commercial lenders, such as banks, savings and loan associations and insurance companies. n Coercing, intimidating or ______________ ______________________________________ _____________________________________ with any person in the exercise or enjoyment of these rights. Coercing intimidating, threatening or interfering with any person who aids, provides service to, or encourages another person to exercise these rights is also illegal.

Enforcement 1. The Department of Housing and Urban Development (H.U.D.) may investigate and attempt to conciliate when it finds evidence of discrimination.

2. U.S. Department of Justice may file a pattern and practice suit.

3. Individual may file suit in Federal Court.

Relief and Remedies Available through Court A ____________________________________ can restrain an owner from selling or renting a property until the case is heard.

Compensatory and punitive _____________ ___________________________________ ______can be levied against liable parties.

A variety of ____________________________ ______________________________________ ____________________________________ steps can be ordered such as: Compliance Record Keeping Fair Housing Training Affirmative Advertising

MEMBERSHIP ONBOARDING

25

Fair Housing Equal Service Checklist

Office/Den: ___________________________

Develop policies or procedures concerning

Fair Housing Needs and Wants Checklist Date: ________________________________

treatment of customers during their initial

Name (s) _____________________________

_____________________________________

contact with your firm. For example:

Street Address ________________________

1. Hospitality (greeting, refreshments, etc.)

_____________________________________

2. Explaining the services offered by your firm relative to their needs.

3. Obtaining initial prospect information (name, address, telephone).

4. Explaining nondiscriminatory commitment.

5. Keeping records of these contracts.

_____________________________________

_____________________________________ _____________________________________ Fireplace: ____________________________ _____________________________________ _____________________________________ _____________________________________

City _________________________________

Basement: ___________________________

Zip __________________________________

_____________________________________

Phone

_____________________________________

(

) _______________________________

_____________________________________

(

) _______________________________

Garage/Carport: ______________________

Urgency _____________________________

_____________________________________

_____________________________________

_____________________________________

_____________________________________

_____________________________________

Motivation ____________________________

Yard: ________________________________

_____________________________________

_____________________________________

_____________________________________

_____________________________________

Reason for Contacting You ______________

_____________________________________

____________________________________

Other options. Convenient to:

____________________________________

Shopping: ____________________________

is financially qualified to buy?

_____________________________________

_____________________________________

Let the customer set the limits in the

Type of Home:

_____________________________________

housing search.

o Ranch

o Colonial

A. Provide prospective buyers and renters

o Cape Code

o Split level

with complete and accurate information

o Townhouse

o Condo

6. Follow-up.

Obtaining objective information regarding the prospects or customer’s needs and wants. For example: 1. Identifying objective needs such as price, size, features and location.

2. Responding to subjective requests to elicit objective criteria.

3. Does my customer know what he or she

on the availability of housing, alternative methods of financing and other facts affecting the choice of location (such as schools, employment, transportation).

B. Allow the prospect to make

Age of Home: o New

o 1-3 years

o 4-6 years

o 7-10 years

o 10-20 years

o Over 20 years

Schools: _____________________________ _____________________________________ _____________________________________ Recreation: ___________________________ _____________________________________ _____________________________________ Decorating Plans: _____________________ _____________________________________

the choices:

Features:

_____________________________________

1. Features in a house or apartment

Number of bedrooms: _________________

Family Hobbies: _______________________

2. Price

Number of bathrooms: _________________

_____________________________________

3. Financing options

Type/size of Kitchen: __________________

_____________________________________

4. Communities or areas

_____________________________________

Other: _______________________________

Offer a variety of choices:

_____________________________________

_____________________________________

A. In housing financing options

Dining Room: _________________________

_____________________________________

B. In location

_____________________________________

_____________________________________

C. Offer alternatives to all prospects

_____________________________________

_____________________________________

Require good record keeping for all

Living Room: _________________________

_____________________________________

prospects and inquiries.

_____________________________________

_____________________________________

A. Housing requested

_____________________________________

_____________________________________

B. Housing options and alternatives offered.

_____________________________________

_____________________________________

C. Service provided.

Family Room: _________________________

D. Establish a method of monitoring

____________________________________

and evaluation.

_____________________________________

26

BAKERSFIELD ASSOCIATION OF REALTORSÂŽ

_____________________________________ _____________________________________ _____________________________________

RONDA

NEWPORT JOHN 3:16

2020 President Wa t s o n R e a l t y E R A

MEMBERSHIP ONBOARDING

27

S TAT E M E NT O F PU R PO SE

V I S I O N S TAT EM EN T

GOA L S

The Bakersfield Association of

Improving the

Association of REALTORS® is

real estate

the leading advocate for Real

industry through

Estate, our Members, and the

professionalism and

Community we serve.

service

I. Professionalism and Standards II. Member Service and Value III. Association Leadership and Operations IV. Government Relations and the Voice of Real Estate V. Community Service

PURSUE EXCELLENCE N PERSONAL EXCELLENCE N COMMUNITY EXCELLENCE N REALTOR® EXCELLENCE