3.1 Agency Policy Statement for Key Realty
3.2 Wholesale Policy
3.3 Antitrust Compliance Policy
3.4 Commercial/Industrial Real Estate Policy
3.5 Property Management
3.1 Agency Policy Statement for Key Realty
SECTION A: GENERAL POLICY ON AGENCY
1) It is the policy of Key Realty to represent both sellers and buyers. Affiliated agents shall represent the seller when they list the property and shall act as a buyer's agent when working with a buyer.
2) When representing a seller, Key Realty and its agent owe the seller the duties of loyalty, obedience, confidentiality, accounting and reasonable skill and care in performing our duties, and any other duties contained in our listing agreement. We are required to act solely on behalf of the seller's interest to seek the best price and terms for the seller. Finally, as a seller's agent, we also have a duty to disclose to the seller all material information obtained from the buyer or from any other source.
3) When representing a buyer, Key Realty and its agent owe the buyer the duties of loyalty, obedience, confidentiality, accounting and reasonable skill and care in performing their duties and any other duties contained in an agency agreement. The agent and brokerage are required to act solely on behalf of the buyer's interests to seek the best price and terms for the buyer. Finally, a buyer's agent and brokerage also have a duty to disclose to the buyer all material information obtained from the seller or from any other source.
4) On in-company transactions where both buyer and seller are represented by separate licensees, each party will be represented by their respective agent and those agents must not share confidential information with each other.
The brokerage and its management-level licensees who are not personally representing the buyer or seller are dual agents. In this situation, the brokerage's role is to do the following:
- Objectively supervise the agents involved so they can each fulfill their duties, as outlined above, to each of their clients.
- Assist the parties in an unbiased manner to negotiate a contract.
- Assist the parties in an unbiased manner to fulfill the terms of any contract.
As a dual agent, the brokerage cannot:
- Advocate or negotiate on behalf of either the buyer or seller.
- Disclose confidential information to any party or any other employee or agent of the brokerage.
- Use confidential information of one party to benefit the other to the transaction.
5) If a management-level licensee either personally represents the buyer or seller or is the buyer or seller on an in-company transaction, the management-level licensee will only represent his client or himself. The buyer and seller will acknowledge this relationship on the Agency Disclosure Statement.
6) If an agent sells his own listing to a buyer client, the agent is a dual agent. The agent may only act as a dual agent if both buyer and seller agree. A dual agent may not disclose any confidential information that would place one party at an advantage over the other party and may not disclose any of the following information without the informed consent of the party to whom the information pertains:
- That a buyer is willing to pay more than the price offered;
- That a seller is willing to accept less than the asking price;
- Motivating factors of either party for buying or selling; or
- That a party will agree to finance terms other than those offered.
SECTION B: PRINCIPAL BROKER AND MANAGEMENT-LEVEL POSITIONS
The following position(s) in the brokerage are designated as principal broker level:
Dennis Degnan, Principal Broker
Doug Finney, Principal Broker
The following positions in the brokerage are designated as management level:
Dennis R Degnan, Principal Broker
Amy J Saylor, Principal Broker
Douglas H Finney, Principal Broker
Erin Elizabeth Rickman, Principal Broker
J Scott Seipel, Principal Broker
Bruce A Smenner, Principal Broker
Maria T Alexander, Associate Broker
Gay K Barker, Associate Broker
Starley Cannon, Associate Broker
Joshua J Cooper, Associate Broker
Ray Frankart, Associate Broker
Lee J Goodman, Associate Broker
Kenneth A Hicks, Associate Broker
Aaron Mark Laser, Associate Broker
Delene R McNeal, Associate Broker
Harry G Schmitz, Associate Broker
Tina R VanderMade, Associate Broker
Richard H Woods, Sales Management Level
Marcy J Imperi, Sales Management Level
Deborah L Rajner, Sales Management Level
Richard Allen Russell, Sales Management Level
Abigail M Smith, Sales Management Level
Virginia C Higgins Patrick, Sales Management Level
Phillip Francis Navarre, Sales Management Level
Aaron Thomas Singerman, Sales Management Level
Tiffanie R Daniels, Sales Management Level
Jay Alon Mattlin, Sales Management Level
Donika Ann Minick, Sales Management Level
SECTION C: APPOINTMENT OF LICENSEES
In the event an agent wants another agent in the brokerage to represent his client, that client must agree in writing to this agent being appointed to represent him. Such written appointments must be maintained in the brokerage file. This appointment must be approved in writing by both the client and the acting manager of the Key Realty Regional Office prior to the appointment. It is the choice of the client regarding the secondary affiliated licensee.
SECTION D: WORKING WITH RELATIVES, BUSINESS ASSOCIATES, ETC.
1) If a person with whom an agent has a personal, family or business relationship wants to sell property, the agent shall act as a listing agent representing that person. In the event the agent acts as a dual agent and sells the property to a buyer he represents, the nature of the agent's relationship with the seller must be disclosed to the buyer before the buyer consents to the dual agency and the relationship also must be disclosed on the Agency Disclosure Statement. Any other agent in our brokerage or a cooperating brokerage representing a buyer must be notified of the relationship, and the relationship must be disclosed in writing prior to a contract being entered into.
2) If a person with whom an agent has a personal, family or business relationship wants to purchase property, the agent shall act as a buyer's agent. Any family, business or personal relationship must be disclosed to the listing agent, or if there is none, to the seller, and disclosed on the purchase contract. In the event the agent acts as a dual agent because the property the buyer wants to purchase is listed with him, the nature of the agent's relationship with the buyer must be disclosed to the seller before the seller consents to the dual agency and it must be disclosed on the Agency Disclosure Statement as well.
3) If an agent has a personal, family or business relationship with another agent involved in a transaction, that fact must be disclosed to the parties. This disclosure must be made prior to a contract being entered into.
SECTION E: AGENTS BUYING OR SELLING THEIR OWN PROPERTY
1) Agents selling their own property must list it with (brokerage name) and act as their own listing agent.
- a) If the agent's property is shown to a buyer represented by another brokerage, or another agent in Key Realty, that buyer's agent shall be notified at first contact of the fact that the listing agent is also the seller and this must be noted on any subsequent contract that is entered into.
- b) If a buyer contacts the listing agent/seller directly, that buyer shall be treated as a customer and told at first contact the property is owned by the listing agent, and this must be confirmed in any subsequent purchase contract. The buyer shall be given the Agency Disclosure Statement indicating that the listing agent represents himself as the seller. If the buyer wants representation he will be referred to another agent in the brokerage who can represent him. The fact that the listing agent is also the seller must be noted on any purchase contract that is entered into.
- c) If the listing agent/seller already has an agency relationship with a buyer interested in purchasing his property, he must disclose the fact that he is the owner of the property and cannot represent the buyer in the purchase of the property. The agent shall terminate his agency relationship with the buyer. The buyer shall be treated as a customer or another agent shall be appointed to represent the purchaser. The fact that the listing agent is also the seller shall be disclosed on the purchase contract.
2) Agents buying property for themselves must also handle these transactions through the brokerage and act as a buyer's agent.
- a) If the property the agent wishes to see is listed with another brokerage, the listing brokerage must be notified at first contact that the licensee is acting for himself. On any offer the agent makes, it must indicate that he is a licensed agent with Key Realty and submit an Agency Disclosure Statement indicating that he is a buyer's agent.
- b) If the property the agent wants to purchase is listed with him, the circumstances must be disclosed to the seller immediately and the agent must terminate his representation of the seller. The seller shall be referred to another agent in the brokerage to represent him. The fact that the buyer is a licensed agent with Key Realty representing himself must be disclosed on the offer to purchase and the Agency Disclosure Statement shall indicate that the listing agent represents the seller and the buyer’s agent represents himself as the buyer.
- c) If the property the agent wants to see is listed with another agent in Key Realty, the agent must immediately inform the listing agent that he is interested in buying the property for himself. The listing agent shall not share any confidential information with the buyer/agent unless expressly authorized by the seller. If the buyer/agent wishes to make an offer to purchase, he shall indicate on the offer that he is a licensed agent with Key Realty and submit an Agency Disclosure Statement indicating that he is acting as a buyer's agent.
- d) If the property an agent is interested in seeing for his own possible purchase is not listed (a FSBO), then the agent shall notify the seller at first contact that he is a buyer's agent representing himself. The agent shall also disclose any intention to seek compensation from the seller. The agent shall not have the seller sign a listing agreement. In the event the agent wishes to purchase this property, the fact that he is a licensed agent with Key Realty shall be noted on the offer and an Agency Disclosure Statement indicating the agent is acting as a buyer's agent shall be delivered with the offer.
SECTION F: CONFIDENTIAL INFORMATION
Since agents within Key Realty act as buyer's and seller's agents, it is possible that one agent could potentially be representing a buyer who is buying a property listed with a different agent in our brokerage. In this instance, each agent has separate duties to his respective client. Therefore, it is necessary for the following steps to be followed to protect the confidential information of the buyer from being disclosed to another agent in our brokerage who could be representing the seller, and vice versa.
1) Office files. Each agent shall maintain in his physical or virtual file cabinet all documents relating to a client he represents. Correspondence, offers, addenda, inspection reports and the like shall not be kept on desks or left out where they could be viewed by other agents. Agents shall keep their file cabinets locked when they are not in the office.
Key Realty shall have a key to the agent's file cabinet in the event it is necessary for Key Realty to access this information. The agent shall place in the general office file only those documents that are non-confidential such as listing information.
2) Computerized records and messages. All computer documents maintained by agents shall be password-protected so that other agents in the brokerage cannot retrieve or view this information. Agents shall not share their passwords with one another for any reason.
3) Office meetings and discussions. Agents shall not share confidential information regarding their clients at office meetings or discuss such information with others in the office unless the client specifically permits such disclosure. If the client so authorizes, this authorization should be noted by the agent in his file. Confidential information includes, but is not limited to, a client's motivation to purchase or sell, a client's financial information, the amount of any offer or counter-offer that a client has made or is considering making or the amount of any pending contract. Office meetings involving such confidential information shall take place in private, so as not to be overheard by others.
4) Telephone and inter-office messages and conversations. Telephone and inter-office messages that contain confidential information shall be hand-delivered in writing to the appropriate agent or placed in an envelope on either the agent's desk or in his mailbox. Conversations between agents, with management-level licensees or other staff concerning clients, shall be held in private if the conversation involves confidential information.
5) Meetings and conversations with clients. All meetings with clients shall take place in the conference room when other agents are in the office. Likewise, telephone conversations with clients that involve confidential information shall take place only in the conference room, as well. Agents shall not utilize the speakerphone when having conversations of a confidential nature unless the conversations take place in a closed office.
6) Internet websites including social networking sites and blogs. Agents shall not share confidential information regarding their clients on any internet websites including social networking sites and blogs unless the client specifically permits such disclosure.
SECTION G: DUAL AGENCY
1) Agents acting as a dual agent shall disclose to the parties all relevant information necessary for them to make an informed decision about whether to consent to the dual agency. This would include, but not be limited to, the nature of the relationship the agents have with a party to the transaction. This must be done on the Agency Disclosure Statement. If this information later changes, this change must be provided in writing to the parties as soon as possible and they must be given an opportunity to revoke their consent to the dual agency.
2) In the event a party refuses to consent to the dual agency or seeks to terminate any agency relationship as a result of the proposed dual agency, the regional manager shall be notified immediately. If the client's consent cannot be obtained, Key Realty and its agents cannot act as dual agents. The regional manager shall attempt to obtain the objecting party's consent to another agent in the Key Realty being appointed to represent him. If this cannot be agreed upon, the regional manager shall depend on the circumstances and wishes of the parties, determine which relationship shall be terminated.
SECTION H: CHANGING AGENCY RELATIONSHIPS
Agents shall not change agency relationships once they have been established unless approved by their regional manager. If such a change is approved, the client whose agency relationship is being terminated must consent in writing and any persons who know of the previous relationship must be notified in writing as well. (Here brokers may wish to indicate any form they want agents to use in this situation.)
SECTION I: POLICY ON COOPERATION AND COMPENSATION
1) It is the policy of Key Realty to cooperate with all other brokerages on an equal and consistent basis. This means Key Realty and its agents will make its listings available to other brokerages to show, provide information that is not confidential, and present all offers written by other brokerages in a timely and objective manner.
2) Unless the seller does not authorize it, Key Realty will offer compensation to the following other brokerages:
Co-Broke Offering through the MLS to buyer brokers only
Additionally, Key Realty has the following commission policy:
Key Realty is not a discount brokerage firm, recommended total commission is
$100,000 - $200,000: 6% - 7%
$200,000+: 6% of the first $100,000 & 4% on the remainder
Recommended minimum commission is $4,000.
Co-broke will be established and maintained as regional policy. Cooperating Key agents shall be entitled to no less than this amount.
Minimum: $1000
Under $150,000: 2.75%
Over $150,000: 3% of the first $100,000 & 2% on the remainder
It is understood by Key Realty management that special circumstances can and do apply such as family members, multiple property owners, bank-owned and short sales.
3) Key Realty does reserve the right, in some instances, to vary the compensation it offers to other brokerages, whether as subagency or buyer agency compensation. Therefore, the compensation it offers cooperating brokers may not always be equal and consistent.
4) When acting as a buyer's agent, Key Realty also accepts compensation offered by the listing broker through the multiple listing service. If the property is offered privately (FSBO), compensation is not offered to brokers, or the compensation is deemed to be insufficient, The following language may be inserted in the Offer to Purchase:
“Buyer’s brokerage is declining cooperating compensation as offered per multiple listing service. Seller(s) to pay 3 percent buyer agency representation fee to buyer's brokerage at closing.”
This language may only be used if an agent has a signed Buyers Agency Agreement with the potential purchaser.
SECTION J: PRINCIPAL BROKER IN MORE THAN ONE BROKERAGE
(Include this section if the principal broker is the principal broker for more than one brokerage.)
Dennis Degnan is the principal broker for Key Realty and is also the principal broker in the following brokerages:
Brokerage Name: Key Associates of Ohio
Business Address: 7943 Quarry Road, Maumee OH 43537
Affiliated licensees understand that they may only perform the licensed activity under the brokerage with which they are licensed.
3.2 Wholesale Policy
Key prohibits Key’s agents from representing parties in connection with or participating in any way in the purchase, sale, and or assignment of any existing contracts for the sale of real estate (also known as wholesaling or selling real estate contracts or optioning real estate contracts). Key Realty does allow an agent to represent a seller who reserves the right to sell their property with an option of the assignment. Key Realty also allows an agent to represent a purchaser who is purchasing a contract from a wholesaler.
Example: Seller A hires Key Agent #1 to list their home for sale. Wholesaler Johnny represented by Key Agent #2 goes under contract with Seller A with the option to wholesale/assign the contract to another purchaser. Buyer A represented by Key Agent #3 is assigned the contract from Wholesaler Johnny and closes on the home.
Example Rules: In this example, Key Agent #1 is allowed to represent Seller A as Seller A reserves the right to sell their property with the option of assignment.
Key Agent #2 cannot represent Wholesaler Johnny as Key agents are not allowed to represent or participate in any way with the purchase, sale or assignment of any existing contracts, also known as wholesaling.
Key Agent #3 is allowed to represent Buyer A as Key agents are allows to represent a purchaser who is purchasing a contract from a wholesaler.
3.3 Antitrust compliance Policy
Brokerage rates for a Key Realty Regional Office are based upon the cost of the services provided by that Key Realty Regional Office, the value of these services to their clients and certain competitive market conditions. Commission rates are not determined by Key Realty Corporate nor any other person(s) not a party to a Listing Agreement or Buyer Representation Agreement with a particular Key Realty Regional Office.
Businesses must be conducted in accordance with all applicable antitrust laws. This includes, but is not limited to the following:
Associates affiliated with any Key Realty Regional Office
shall not discuss (and shall not be present at any discussion of) commission rates charged by their Key Realty Regional Office or any other real estate brokerages in their community or any other community with any person affiliated with any other real estate brokerage, including other Key Realty Regional Office, any real estate industry trade association, or any entity undertaking a survey of such rates. Any questions or concerns regarding the discussion of fees or commissions should be directed only to the Key Realty Regional Office broker or manager. The Key Realty Regional Office broker or manager will consult with an attorney on all commission matters for which they do not have a response for the questioning associate.
Associates affiliated with any Key Realty Regional Office
shall not discuss (and shall not be present at any discussion of) their intention to pursue or not to pursue business opportunities with particular potential customers or in particular geographic areas with any person affiliated with any other real estate brokerage, including other Key Realty Regional Offices or brokerages, and any real estate industry trade association.
3.4 Commercial/Industrial Real Estate Policy
Key Realty specializes in residential sales: single-family homes, small multi-units, and residential lots. Any agent whose primary business is the commercial real estate should consider working at a brokerage that specializes in selling commercial properties.
Commercial and industrial real estate is a unique and highly-specialized aspect of our profession. With rare exceptions, it is advisable to refer this business to a commercial real estate specialist. The sale of businesses by Key agents is specifically prohibited. This is another highly-specialized area that should only be handled by qualified commercial agents.
There are some types of properties that fall into a gray area. The following are allowed to be sold by residential agents, provided they have experience and/or oversight to do so.
- Multi-Family up to 12 Units
- Farmland up to 20 acres or if the land is being sold as residential or buildable lots
- Residential lots
- Pre-development announcement
- Established developments (infrastructure in place) Roads, Utilities
- Lot Pre-sale
- Farms up to 20 acres
- Orchards up to 20 Acres
- Office space 2000 sq ft or less for sale or lease
Bottom Line: If you have a property that you believe may be commercial, please call your Regional Partner to discuss how we might best represent our clients. Approval by the Regional Partner is required prior to writing a commercial contract and will be considered on a case by case basis.
3.5 Property Management
Property management by Key Realty agents (except for authorized Key Realty property management divisions) is prohibited.
- Property management of properties owned directly by agents is permitted.
- State law may allow a person to manage property depending on the employee relationship to the owner of the property. (REF: https://www.ohiorealtors.org/property-mgmt-wp-license-employee-of-owner/)