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Policy And Procedures Manual

Table Contents

1. INTRODUCTORY STATEMENT

2. GENERAL POLICIES

3. RIGHT TO REVISE

4. FIDELITY TO THE CLIENT

5. NAMES AND ADDRESSES

6. PERSONNEL RECORDS

7. PUBLIC IMAGE

8. CLIENT RELATIONS

9. PERSONAL APPEARANCE

10. CONFIDENTIALITY

11. STANDARDS OF CONDUCT AND DISCIPLINE

12. OPEN DOOR

13. EQUAL OPPORTUNITY POLICY

14. HARASSMENT POLICY

15. INSURANCE ON PERSONAL EFFECTS

16. USE OF ELECTRONIC MEDIA

17. SMOKING

18. ALCOHOL AND DRUG ABUSE

19. TELECOMMUTING

20. HEALTH & SAFETY

21. DRIVING

22. TERMINATION

23. INVOLUNTARY TERMINATION

24. INDEPENDENT CONTRACTOR REFERENCES

25. MEDICAL INSURANCE

26. DISABILITY INSURANCE

27. UNEMPLOYMENT COMPENSATION

28. SOCIAL SECURITY

29. EXTERNAL CONTRACTOR EDUCATION

30. INDEPENDENT CONTRACTOR STATUS

31. RECRUITMENT BONUS

32. LICENSURE; BOARD OF REALTORS

33. UNFAIR ADVANTAGE; ETHICS

34. DO-NOT-CALL LIST

35. COMPETENCE; EDUCATION

36. CORONA VIRUS GUIDELINES

37. INDEPENDENT CONTRACTORS’ TRANSACTIONS

38. DISPUTE RESOLUTION

39. AFFILIATED BUSINESS

40. SUITS FOR COMMISSION

41. RISK MANAGEMENT

42. SUPPORT AND TRAINING

43. INCOMING CALLS

44. ADVERTISING

45. TRUST FUNDS

46. CONTRACTOR ACTIVITY FOR TRANSACTIONS

47. DISCRIMINATION

48. AGENCY DISCLOSURE AND CONFIRMATION POLICY

49. TAXES; UNEMPLOYMENT COMPENSATION

1. INTRODUCTORY STATEMENT

Welcome! As an independent contractor of Pacific Home Brokers Inc. (the “Company”), you are an important member of a team effort. We hope that you will find your position with the Company rewarding, challenging, and productive.

Because our success depends upon the dedication of our independent contractors, we are highly selective in choosing new agents of our team. We look to you to contribute to the success of the Company.

This policy manual is intended to explain the terms and conditions of all Independent Contractor's Agreements.

This manual summarizes the policies and practices in effect at the time of publication. This manual supersedes all previously issued handbooks and/or manuals and any policy or benefit statements or memorandum that are inconsistent with the policies described here. This manual is incorporated into your agent and loan officer contract. The Broker will be happy to answer any questions you may have.

2. GENERAL POLICIES

3. RIGHT TO REVISE

This policy manual contains the policies, independent contractual agreements and practices of Pacific Home Brokers Inc. in effect at the time of publication. All previously issued manuals and any inconsistent policy statements or memorandum are superseded.

Pacific Home Brokers Inc. reserves the right to revise, modify, delete, or add to any and all policies, procedures, work rules, or benefits stated in this manual or in any other document.

This manual sets forth the entire agreement between you and Pacific Home Brokers Inc. as to the duration of the independent contractor agreement and the circumstances under which said agreement may be terminated. Nothing in this policy manual or in any other personnel document, including benefit plan descriptions, creates or is intended to create a promise or representation of continued independent contractor agreement for any independent contractor.

4. FIDELITY TO THE CLIENT

The Independent Contractor’s primary obligation is to the client and he/she must always maintain this fidelity as the principal’s agent, making no representations contrary to the client’s best interests or instructions.

5. NAMES AND ADDRESSES

Pacific Home Brokers Inc. is required by law to keep current all contractors’ names and addresses. Contractors are responsible for notifying the Company in the event of a name or address change.

6. PERSONNEL RECORDS

You have a right to inspect certain documents in your agent file, as provided by law, in the presence of a Company representative at a mutually convenient time. No copies of documents in your file may be made, with the exception of documents that you have previously signed.

Pacific Home Brokers Inc. will restrict disclosure of your personnel file to authorized individuals within the Company. Any request for information contained in personnel files must be directed to Broker. Only Broker is authorized to release information about current or former contractors or independent contractors. Disclosure of personnel information to outside sources will be limited. However, Pacific Home Brokers Inc. will cooperate with requests from authorized law enforcement or local, state, or federal agencies conducting official investigations and as otherwise legally required.

7. PUBLIC IMAGE

All Independent Contractors with the Company will conduct their business activities so as to enhance and promote the good will and reputation of the Company. The Company encourages all Independent Contractors to be active in their REALTOR association and contribute to the good of the community.

8. CLIENT RELATIONS

Independent contractors are expected to be polite, courteous, prompt, and attentive to every client. When an contractor encounters an uncomfortable situation that he or she does not feel capable of handling, your Broker should be called immediately. Ours is a service business and all of us must remember that the client always comes first. Remember, while the client is not always right, the client is never wrong.

Clients are to be treated courteously and given proper attention at all times. Never regard a client's question or concern as an interruption or an annoyance. You must respond to inquiries from clients, whether in person or by telephone, promptly and professionally.

Through your conduct, show your desire to assist the client in obtaining the help he or she needs. If you are unable to help a client, contact the Broker.

All correspondence and documents, whether to clients or others, must be neatly prepared and error-free. Attention to accuracy and detail in all paperwork demonstrates your commitment to those with whom we do business.

Never argue with a client. If a problem develops or if a client remains dissatisfied, contact the Broker.

9. PERSONAL APPEARANCE

Independent contractors with a neat, clean appearance are important to our business. How they look is the image the public has of our Company. All are expected to wear clothing appropriate to their job.

10. CONFIDENTIALITY

Each independent contractor is responsible for safeguarding the confidential information obtained during employment. All records, files, documents and correspondence of the Company and Independent Contractors, as well as all conversations between any persons and Independent Contractors with the Company are considered to be confidential. No person or Independent Contractor with the Company shall use records, files, documents or correspondence to the advantage of themselves or any other person, firm, partnership or corporation to the detriment of the Company, either during their association with the Company or at any time afterward.

11. STANDARDS OF CONDUCT AND DISCIPLINE

Independent Contractor agrees to limit his or her real estate activity to the solicitation of listings and/or buyers and facilitating the sale or purchase of real estate.

Prohibited Contractor activities include: property management, loan modification, legal consultation, tax advice, leasing property the Contractor owns in the Broker's name, business sales and lease option purchases. Activities that require Broker written permission include: processing loans and providing Broker Price Opinions.

Contractor shall not engage in activity that is illegal, unethical or that could lead to their real estate license being suspended or revoked. Any issues that are progressing to threats of legal action arising from your transaction need to be conveyed to the Broker within 24 hours. All acts must happen in escrow before close unless Broker has approved otherwise.

Contractor cannot directly receive any compensation for performing real estate activities or loan activities without Broker’s signed approval to escrow.

All property listings, agreements, acts or actions for performance of licensed acts, which are taken or performed in connections with this Agreement, shall be taken and performed in the name of the Broker. Contractor agrees and hereby grants all right and title of these listings to Broker. Independent Contractor shall have no authority to bind broker to any agreement, representation or promise and Broker will not be liable for any liability or obligation incurred by Independent Contractor unless Broker specifically authorizes it in writing.

Independent Contractor shall be familiar and comply with all applicable laws, policies and procedures including, but not limited to, anti-discrimination laws and restrictions against giving or receiving referral fees to title companies, inspection companies etc.
Independent Contractor is not to personally use or disclose or furnish, directly or indirectly, to any person, firm, company or Broker engaged in the real estate business, any confidential information or property rights of Broker, as acquired by Independent Contractor as a result of the relationship hereby established.

12. OPEN DOOR

Suggestions for improving Pacific Home Brokers Inc. are always welcome. At some time, you may have a complaint, suggestion, or question about your transaction, or the treatment you are receiving. Your good-faith complaints, questions, and suggestions are of concern to the Company. We ask you to discuss your concerns with the Broker, following these steps:

Within a week of the occurrence, bring the situation to the attention of the Broker.
If the problem persists, you may describe it in writing and present it to the Broker, who will investigate and provide a solution or explanation. If you need assistance with your complaint, or you prefer to make a complaint in person, contact Broker.

This procedure, which we believe is important for both you and the Company, cannot guarantee that every problem will be resolved to your satisfaction. However, Pacific Home Brokers Inc. values your observations and you should feel free to raise issues of concern, in good faith, without the fear of retaliation.

13. EQUAL OPPORTUNITY POLICY

Pacific Home Brokers Inc. is an equal opportunity company and makes decisions on the basis of merit. We want to have the best available persons. Company policy prohibits unlawful discrimination based on race, color, creed, gender, religion, marital status, registered domestic partner status, age, national origin or ancestry, physical or mental disability, medical condition including genetic characteristics, sexual orientation, or any other consideration made unlawful by federal, state, or local laws. It also prohibits unlawful discrimination based on the perception that anyone has any of those characteristics, or is Independent Contractor with a person who has or is perceived as having any of those characteristics. All such discrimination is unlawful.

14. HARASSMENT POLICY

Pacific Home Brokers Inc. is committed to providing an environment free of unlawful harassment. Company policy prohibits sexual harassment and harassment based on pregnancy, childbirth or related medical conditions, race, religious creed, color, gender, national origin or ancestry, physical or mental disability, medical condition, marital status, registered domestic partner status, age, sexual orientation, sexual identity or any other basis protected by federal, state or local law or ordinance or regulation. All such harassment is unlawful. The Company’s anti-harassment policy applies to all persons involved in the operation of the Company and prohibits unlawful harassment by any independent contractor of the Company, as well as vendors, clients, and any other persons.

Prohibited unlawful harassment includes, but is not limited to, the following behavior:
Verbal conduct such as epithets, derogatory jokes or comments, slurs or unwanted sexual advances, invitations or comments;

Visual displays such as derogatory and/or sexually-oriented posters, photography, cartoons, drawings or gestures;

Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work because of sex, race or any other protected basis;

Threats and demands to submit to sexual requests as a condition of continued employment, or to avoid some other loss and offers of employment benefits in return for sexual favors; and Retaliation for reporting or threatening to report harassment.

If you believe that you have been unlawfully harassed, submit a written complaint to the Broker. You will be asked to provide details of the incident or incidents, names of individuals involved and names of any witnesses. The Company will immediately undertake an effective, thorough and objective investigation of the harassment allegations.

If the Company determines that unlawful harassment has occurred, effective remedial action will be taken in accordance with the circumstances involved. Any contractor determined by the Company to be responsible for unlawful harassment will be subject to appropriate disciplinary action, up to, and including termination. A Company representative will advise all parties concerned of the results of the investigation. The Company will not retaliate against you for filing a complaint and will not tolerate or permit retaliation by management, contractors or co-workers.

The Company encourages all contractors to report any incidents of harassment forbidden by this policy immediately so that complaints can be quickly and fairly resolved. You also should be aware that the Federal Equal Employment Opportunity Commission and the California Department of Fair Employment and Housing investigate and prosecute complaints of prohibited harassment in employment. If you think you have been harassed or that you have been retaliated against for resisting or complaining, you may file a complaint with the appropriate agency. The nearest office is listed in the telephone book.

15. INSURANCE ON PERSONAL EFFECTS

The Company recommends you carry your own property insurance policy.

16. USE OF ELECTRONIC MEDIA

Pacific Home Brokers Inc. uses various forms of electronic communication including, but not limited to, computers, e-mail, telephones, cell phones, Internet and PDAs. All electronic communications, including all software, databases, hardware, and digital files, remain the sole property of Pacific Home Brokers Inc.

17. SMOKING

Our office interior is non-smoking for contractors and clients. Smoking by contractors is permitted only outside the building. Make sure tobacco is disposed of properly and safely. In the interest of safety, this policy is strictly enforced and violations may result in discipline up to and including termination. Smoking is not allowed within 100 feet of any office entrance or exit.

18. ALCOHOL AND DRUG ABUSE

Pacific Home Brokers Inc. is concerned about the use of alcohol, illegal drugs, or controlled substances as it affects the workplace. Use of these substances, whether on or off the job can detract from an independent contractor's work performance, efficiency, safety, and health, and therefore seriously impair the independent contractor's value to the Company. In addition, the use or possession of these substances on the job constitutes a potential danger to the welfare and safety of other contractors or independent contractors and exposes the Company to the risks of property loss, damage, or injury to other persons.

Furthermore, the use of prescription drugs and/or over-the-counter drugs also may affect an independent contractor's performance and may seriously impair the independent contractor's value to the Company.

19. TELECOMMUTING

Pacific Home Brokers Inc. permits all independent contractors to telecommute. Broker offices are by appointment only.

All costs for equipment used for telecommuting are the responsibility of the independent contractor. Costs include purchase price, maintenance, and insurance coverage for all necessary equipment.

Independent Contractors are responsible for any costs of obtaining tax advice about a tax deduction for a home office. Independent Contractors are responsible for any tax liability should they claim such an expense and it is later disallowed by the Internal Revenue Service.

Independent Contractors who telecommute must maintain the security of all confidential and/or sensitive information and other proprietary information, as if they were working in the office. All security procedures apply, regardless of whether the independent contractor is in the workplace or telecommuting.

Independent Contractors who telecommute are responsible for following all security and storage rules for files. Pacific Home Brokers Inc. may conduct unannounced visits to telecommuting work or home sites, to ensure that all security procedures are being followed for client information.

The ability to telecommute does not change the performance level expected from an independent contractor.

20. HEALTH & SAFETY

All independent contractors are responsible for their own safety, as well as that of others while performing their real estate activities. In compliance with Proposition 65, Pacific Home Brokers Inc. will inform contractors of any known exposure to a chemical known to cause cancer or reproductive toxicity.

21. DRIVING

Contractor is to maintain in force and effect personal automobile liability insurance. If Contractor has an automobile accident, Contractor indemnifies and holds Broker harmless from any claims or demands.

22. TERMINATION

Voluntary termination results when an independent contractor voluntarily removes his or her license affiliation, or terminates his or her contract with Pacific Home Brokers Inc. Broker can terminate Contractor at any time. Contractor is to stop using advertising in the Company name and cease all activities with Company clients.

23. INVOLUNTARY TERMINATION

Violation of Pacific Home Brokers Inc. policies and rules may warrant termination of contract at Broker discretion.

24. INDEPENDENT CONTRACTOR REFERENCES

All requests for references must be directed to Broker.

By policy, Pacific Home Brokers Inc. discloses only the dates of employment and/or contract duration and the title of the last position held of former independent contractors. If you authorize the disclosure in writing, Pacific Home Brokers Inc. also will inform prospective employers of the amount of commission you have earned.

25. CONTRACTOR BENEFITS

26. MEDICAL INSURANCE

Pacific Home Brokers Inc. does not provide health care benefits for it's independent contractors.

27. DISABILITY INSURANCE

Pacific Home Brokers Inc. does not contribute to disability insurance for it's independent contractors.

28. UNEMPLOYMENT COMPENSATION

Pacific Home Brokers Inc. does not contribute to the California Unemployment Insurance Fund for it's independent contractors.

29. SOCIAL SECURITY

Pacific Home Brokers Inc. does not contribute to Social Security for it's independent contractors.

30. EXTERNAL CONTRACTOR EDUCATION

Independent Contractor must complete all continuing education requirements and is encourage to attend the weekly training via online with the Broker.

31. INDEPENDENT CONTRACTOR STATUS

Contractor agrees to work with Broker as an Independent Contractor, and not as a w2 employee, however, Contractor understands that Broker is legally accountable for the activities of the Contractor and the Broker will supervise and authorize all activity. All costs and obligations incurred by Contractor in conducting his/her independent business shall be paid solely by Contractor, who will hold Broker harmless from any and all costs and obligations. Contractor will act independently as to the management of his/her time and efforts, and will be responsible for timely payment of all of his/her own expenses under Broker supervision. Such as industry association dues, licensing renewals, cellular telephones, automobile insurance etc., as they are incurred. Broker will not withhold any Federal or State Income Tax, Social Security (FICA) or Unemployment (FUTA) taxes from Contractor’s commissions paid. Contractor is personally responsible for paying any and all Federal and State Income, Social Security and other taxes, and for maintaining all expense records as required by law, and represents to Broker that all such amounts will be withheld and paid when due. Contractor shall indemnify and hold Broker harmless from any liability or costs thereof. Broker will provide Contractor with an IRS Form 1099 NEC at the end of each calendar year. Contractor agrees to receive their 1099 NEC form via email from Broker. Contractor is considered an independent contractor for purposes of unemployment. Broker and Contractor acknowledge that this agreement does not constitute a w2 employment agreement by either party, shall not be construed as a partnership, and Broker shall not be liable for any obligation, injury, disability or liability incurred by Contractor.

32. RECRUITMENT BONUS

A Contractor, whose license is active with Broker and who successfully refers another licensed real estate Contractor that signs a contract with Broker shall be added as a referral agent to the referred Contractor's transactions and earn $100 dollars when the referred Contractor closes a real estate transaction at Broker expense.

33. LICENSURE; BOARD OF REALTORS

Each Independent Contractor shall maintain an active license to sell real estate in this state at their own expense. Independent Contractors will also pay their own applicable membership and participation fees. Both the Broker and Independent Contractor agree to comply with all rules and regulations of all real estate associations to which either or both of the parties belong. Each party agrees to save the other harmless from violation of any such rules or regulations.

34. UNFAIR ADVANTAGE; ETHICS

The Golden Rule and the REALTOR’S Code of Ethics are the foundations of the Company’s business conduct policy. The Independent Contractor is expected to similarly adhere to both in his/her dealings with the public.

35. COMPETENCE; EDUCATION

If an Independent Contractor encounters a client with a need in a specialized real estate field in which the Independent Contractor is not well versed, he/she is to enlist the assistance of the Broker. Worthwhile education programs are offered by Pacific Home Brokers Inc. the Association of Realtors, the National Association of Realtors and various institutes, societies, councils and private organizations. While the Company cannot subsidize an Independent Contractors’ costs of attending such programs, all are urged to allocate a portion of their earnings for continuing education to improve professional competence along with the company training.

36. CORONA VIRUS GUIDELINES

Contractor is responsible for adhering to the state and local regulations in regard to open house policy, showing homes, meeting clients, and personal individual safeguards the Contractor must apply to themselves in regard to when to be vaccinated, proof of vaccination and when and where a mask is required to be worn. Broker recommends all Contractor's to be fully vaccinated and wear a mask.

37. INDEPENDENT CONTRACTORS’ PERSONAL PROPERTY TRANSACTIONS

Whenever an Independent Contractor buys, sells or invests in real estate, they must fully disclose to the seller or buyer in writing of their interest, intention and State of California real estate licensing status. Property inspections are mandatory.

38. DISPUTE RESOLUTION

Mediation is recommended as a method of resolving disputes arising out of this agreement between broker and Contractor. If mediation is not mutually agreed upon then arbitration is mandatory. All disputes or claims between Contractor and other licensee(s) associated with Broker, or between Contractor and the Association of Realtors of which all such disputing parties are members for arbitration pursuant to the provisions of its Bylaws, as may be amended from time to time, are incorporated as part of this Agreement by reference. If the bylaws of the Association do not cover arbitration of the dispute, or if the Association declines jurisdiction over the dispute, then arbitration shall be pursuant to the rules of California law. The Federal Arbitration Act, Title 9, U.S. Code, Section 1, et seq., shall govern this Agreement. In the event of a lawsuit or arbitration between Broker and Contractor, Contractor agrees that the venue will be in a San Diego court or with a San Diego arbitrator.

39. AFFILIATED BUSINESS

Pacific Home Brokers Inc. provides mortgage lending and real estate brokerage services. Pacific Home Brokers Inc. is affiliated with Pacific Home Brokers, Pacific Property Loans and Pacific Commercial Brokers. The Contractor will have the Company Affiliated Business Arrangement Disclosure form executed as part of the checklist prior to close of escrow.

40. SUITS FOR COMMISSION

The Company will have the sole discretion in determining whether to sue for a commission. Any such action will be maintained in the name of the Company. If an Independent Contractor participates in such a suit he/she will be expected to pay a share of its costs proportionate to his/her share of the commission being sought. If the Independent Contractor chooses not to participate in such costs, or fails to pay his/her agreed-upon share of the costs, the Independent Contractor shall forfeit any entitlement or claim to a share of a commission subsequently obtained by the Company from such a suit.

41. RISK MANAGEMENT

A. All errors and omissions fees collected for transactions are used to cover the cost of the Broker's errors and omission insurance policy's annual premium and may or may not be used for covering individual Contractor transactions or actions. Contractor shall not commit acts for which the Department of Real Estate of the State of California (DRE), RESPA or HUD are authorized to restrict, suspend or revoke Contractor’s license or impose other discipline, under the California Business and Professions Code Section 10176 or 10177 or other applicable provisions of State or Federal Law. In the event there is a demand, suit, claim, accusation or investigation made by an attorney, party to the contracts, individual, company, corporation and/or any governing body, such as the Department of Real Estate pertaining to Contractor's actions or transactions, Contractor will be responsible for and hereby agrees to pay a legal defense payment of $5,000 to Broker. The legal defense payment is payable and due at the time the demand, suit, claim, accusation or investigation is made aware to Broker and is non refundable. If the Broker finds that the Contractor's actions violated the above provisions based on the evidence the Broker finds or evidence that is reported to Broker or Broker finds the Contractor is at fault for any demand, suit, claim, accusation or investigation, the broker will retain any commissions to be received by Broker or the Contractor will return any commissions received to the Broker for purposes of defending the demand, suit, claim, accusation or investigation at Broker's discretion.

Funds collected from Contractor will be used to cover attorney's fees as a result of defending or responding to a demand, suit, claim, accusation or investigation or towards the deductible on the Broker's errors and omission insurance's policy at Broker discretion. Broker will either contract an attorney, seek attorney counsel with Broker response or pay the deductible with the Broker's errors and omission insurance carrier at Broker discretion for the benefit of the Broker and the Contractor. An insurance claim may NOT be used at Broker discretion depending on the facts of the demand, suit, claim, accusation or investigation and/or if the issue may not be covered under the insurance policy terms. If the Broker finds that the facts show that their may not be an error or omission by Contractor or if Broker finds Contractor may not be at fault, Broker may choose to defend or respond with the counsel of Broker's choice or Broker may respond after counsel advice. Contractor will be responsible for and hereby agrees to pay for any additional legal fees incurred during the process until settlement, resolution or judgment and any resulting costs to Broker to include but not limited to: paying the judgment, mediation settlement or arbitration award against Broker for Contractor's transaction if an insurance carrier is not used, paying the following year's difference in the premium increase for the Broker's errors and omission policy renewal as a result of having filed a claim with the company's errors and omission carrier for Contractor, and any other additional costs related to the defense or response. Broker may withhold commissions from current or future Contractor transactions at Broker discretion to cover the costs of responding or defending a demand, suit, claim, accusation or investigation.

B. Contractor is responsible for returning any loan commissions in the event of an early payoff where a lender is asking for the return of commission or any repurchase of a loan that a lender or other party is asking the Broker to repurchase. If the Broker finds the Contractor committed fraud in a transaction to include but not limited to: falsifying information, material misstatements, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan, fraud for profit, fraud for property, and/or income fraud, Contractor will forfeit any commission received by Broker.

C. To cover the increased liability for unique and high sales priced properties and loans the the Broker can use his discretion depending on the sales price, property or commission size to adjust the errors and omissions fee based on the risk involved with the transaction and to cover the costs of the insurance premium. In general the Broker will follow these additional guidelines but they may be altered depending on the circumstance. In addition to the $165 fee towards the premium for insurance: on property sales greater than $1,200,000, an additional $50.00 fee per $100,000 will apply on all transactions. On property sales with commissions above $40,000 or sales prices over 3 million, the errors and omissions insurance fee will be 10% of the commission agreement amount with Broker and the party paying the commission before any agent credits to client. The Broker will charge 3% fee for any commissions over $15,000 on closed loans. The Broker will charge 10% on the portion of referral commission that is greater than $10,000.

D. Home Inspections: A home inspection by an inspector of the buyer's choice is required on all transactions in order to inform the buyer of possible issues not disclosed by the seller, perform the duties required by the Contractor as an agent, protect the Contractor and Broker from seller non disclosure demands or demands by the parties as well as to ensure the Broker's insurance carrier will cover the transaction in the event a claim is filed for a transaction as a result of a demand. If the buyer will not pay for an inspection, waives the physical inspection, or refuses to pay for the inspector, the seller or Contractor as the agent must facilitate the inspection, pay for the inspection, have the buyer choose the inspector, and provide the report to all parties within the contingency period.

42. SUPPORT AND TRAINING

We provide support via email from 9am to 9pm,7 days a week excluding federal holidays. Any questions you have about any topic can be emailed to our support at support@pacifichomebrokers.net. We will guide you through your transactions and educate you on any topic you have questions. We also send out newsletters to address any pertinent changes and issues that need to be addressed.

43. INCOMING CALLS

Incoming calls for properties listed by Company will be directed to the Independent Contractor who has the listing. If that Independent Contractor is not available, the client will be offered the choice of speaking to another member of the listing agent’s team. If no team member is available, the Broker will decide who will help the client.

44. ADVERTISING

All advertising must be approved by the Broker and comply with California law. Advertising guidelines is located on the company website.

45. TRUST FUNDS

Do not handle any client checks. All clients must wire deposits into escrow. Do not alter the RPA contracts in regard to where the deposit is to be received and by whom.

46. CONTRACTOR ACTIVITY FOR TRANSACTIONS

A. ACTIVITY REPORTING:

Contractor is required to submit all listing agreements, purchase contracts, Transfer Disclosure Statements, Seller Property Questionnaires, counter offers or any contracts where you are writing custom terms for review by Support prior to execution by their client. Contractor is required to notify the Broker within 72 hours of any fully executed listing agreement, purchase agreement, lease listing, lease agreement or referral by the use of an online form located on the Pacific Home Brokers company website under the agent login tab on the following page: www.pacifichomebrokers.org/agentresources.

If the Contractor fails to submit contracts for Broker review prior to the parties executing the contracts for a lease, referral, listing or purchase transaction, Contractor will be charged a $400.00 fee per occurrence by Broker from commission received by Broker.

If the Contractor notifies the Broker after 72 hours of any executed contracts for a lease, referral, listing or purchase OR the Contractor allows an escrow to close without a complete file while working with the Broker support through support@pacifichomebrokers.net, Broker may retain up to 30% of the Contractors commission at Broker's discretion and withhold the Contractor’s remaining commissions until a complete file is received.

If the Contractor does not notify the Broker of a transaction until 72 hours prior to the day of close, the day of close or any time after the close of escrow, the Contractor’s commission will be forfeited to Broker.

B. COMPANY CLIENT FEE

Pacific Home Brokers charges a $595.00 Document and Regulatory Compliance Fee in addition to the commission to your client that will be paid through escrow only if the transaction closes and services have been provided. The fee is to compensate Pacific Home Brokers for their services since Pacific Home Brokers is forwarding its commission to the Contractor in their transaction. The additional fee is being paid for Broker's participation, supervision, evaluation in the transaction and storage of the transaction files. Contractor is to notify their client prior to executing any listing or purchase contract of the Company fee. The Company fee is to be placed in the listing or purchase contract and negotiated with the client at the time of initial contract signing. The Company Regulatory and Compliance Addendum can also be used at the time of contract signing which details the services provided by the Broker for the fee. The Company fee will be deducted from the total commission collected by the Broker if Broker is unable to invoice the client directly through escrow for the fee due to the client fee not being disclosed at contract signing by the Contractor.

47. DISCRIMINATION

Contractor will abide by the federal Fair Housing Act of 1968 and the federal Fair Housing Act Amendments Act of 1988. Education on discrimination by the Broker must be attended by contractor online annually.

48. AGENCY DISCLOSURE, ELECTION AND CONFIRMATION POLICY

A. DISCLOSURE – In California an agent must fully disclose who he or she is representing. This disclosure must be made prior to preparing a purchase and sale agreement, or an intent to lease. The agreement must contain a statement that confirms that the disclosure was made. Often the agent is working for the seller and/or lessor. Without this disclosure, many clients might fail to recognize that although the (selling and/or leasing) agent may spend more time with the buyer and/or lessee in helping them locate the property they are looking for, the agent’s main duties and loyalties are to the seller and/or lessor.

49. TAXES; UNEMPLOYMENT COMPENSATION

The Company will NOT withhold income taxes from an Independent Contractor’s earnings nor will it withhold or match FICA (social security) taxes on an Independent Contractor’s behalf. It is the Independent Contractor’s responsibility to fulfill their own obligations in this regard.

The Company does NOT provide unemployment compensation coverage for Independent Contractors.

50. REAL ESTATE AND LOAN COMMISSION AND FEES:

A. Compensation and commission splits paid to Contractor are as follows: Contractor will receive all commissions paid to Broker minus a $165.00 fee for their contribution to the Broker's errors and omissions insurance policy premium per transaction as long as the Contractor does not violate the provisions of the agent contract and the company policy and procedures located at https://pacifichomebrokers.org/agentresources. Said compensation is to be paid to Contractor out of funds actually collected by Broker. Dual representation by Contractor will have a fee of $265.00 for Broker's errors and omissions insurance policy premium per transaction. Contractor can pay an annual one time fee of $389 for their contribution to the Broker's errors and omissions insurance policy premium instead of $165 per transaction for real estate transactions only.

LOAN ORIGINATION COMMISSIONS AND FEES:

A. For closed loans, a Contractor with a Mortgage Loan Originator license will receive the balance of the loan compensation they are entitled to minus a $165.00 fee for their contribution to the Broker's errors and omissions insurance policy premium and a company fee of $599.00 as long as the Contractor does not violate the provisions of the agent contract and the company policy and procedures located at https://pacifichomebrokers.org/mloresources. The total gross compensation figure the Contractor is entitled to is the listed percentage which is posted in the loan officer resources lender page on https://pacifichomebrokers.org/mloresources under brokered loans on the lender list.

LEASE AGREEMENTS:

A. The Broker’s fees for residential leases are 7% with a minimum fee of $399.00. Contractor must have a full file in accordance with the company lease transaction checklist. Contractor cannot have ownership interest in the property.

REFERRALS TO OTHER BROKERS:

A. The Broker’s fees for residential referrals are 7% with a minimum fee of $399.00. Referral fees earned by Contractor must be paid to Broker. Contractor cannot directly receive a referral fee.

COMMERCIAL TRANSACTIONS:

A. If Contractor represents either a buyer or a seller in a commercial transaction, the Contractor will receive 90% of all commission received by the Broker as long as the Contractor does not violate the provisions of the agent contract and the company policy and procedures located at https://pacifichomebrokers.org/agentresources. Contractor must pay $165 towards the Broker's errors and omissions insurance policy premium per transaction. Dual representation by Contractor will have a fee of $265.00 towards the Broker's errors and omissions insurance policy premium per transaction.

B. Contractor will receive 90% of all commission received by the Broker on commercial leases with a minimum Broker fee of $795.00. The commission split is based off the total commission offered by the seller prior to any rebates, credits, or commission that is negotiated down from the original commission offered.

C. The Broker's fees for commercial referrals to other Brokers are 7% with a minimum fee of $795.00.

SEVERABILTY

Each paragraph of this agreement shall be and remain separate from and independent of and severable from all and any other paragraphs herein except where otherwise indicated by the context of the agreement. The decision or declaration that one or more of the paragraphs are null and void shall have no effect on the remaining paragraphs of this agreement.

Notice: As per your Independent Contractor contract, all terms in this document and all items within the agent resources and loan resources are incorporated into your contract.

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September 24, 2021 9:27 am PDT

Policy And Procedures Manual Uploaded by PHB Support - support@pacifichomebroker.com IP 68.7.228.53