January 14, 2006

Section One

1.0 LISTING – OBTAINING AND SERVICING

1.1 BROKERAGE COMMISSIONS

When discussing Brokerage Commissions with the public you are quoting the Company commission only. The commission rate for the sale, rental, or management of real property shall be determined between each individual broker, agent and their client.

a) There is never to be any discussion with a cooperating broker or sales associate or the general public, regarding commission rates, pricing structures, marketing practices or the fee structure or business practices of a competitor (i.e., if you are ever part of a group that is discussing any of the above, you are to immediately excuse yourself from the discussion).

b) The preferred company policy for commission is as follows:

1. 10% Farm listings
2. 6% Residential property
3. 10% Building lots and Land
4. 10 % Commercial Property
5. 10% Business Sales
c) In the event you need to lower the commission or renegotiate a commission after the sales is in process, approval is required by one of the Managing Brokers.

1.2 TYPES OF LISTINGS

a) Exclusive Right to Sell

1. This is the full right to represent the owner in any sale of the property.

2. There is a standard listing agreement form that is to be signed by the sellers and all owners of record must sign). Executors and/or Administrators with legal right to sell property may sign. We strongly recommend a minimum term of 90 days. 120 to 180 days is much better.

b) Exclusive Agency Listing

1. This type of listing is not recommended. (Seller has right to sell property with
no commission paid.) In the event this is the only kind of listing that can be obtained, it is permissible. We recommend telling Seller that a minimum of advertising shall be done during term, and if Seller signs any valid contract, we are to be notified immediately.

1.3 LISTING AGREEMENT – FORM AND INFORMATION

a) The listing associate is to secure all information and prepare the Multiple Listing Service (MLS) input sheet. MLS requires that all information furnished be complete and accurate. As the person providing information to the MLS, you are therefore responsible for the accuracy and completeness of the information. It is imperative to pay attention to the taxes, special assessments and pending special assessments, as they are critical. Flood plain or flood plain fringe area and zoning information should be noted if applicable. All information must be updated when renewing a listing. Double check and report square footage accurately. Listing Agent shall enter listing in MLS within 48 hours of signing of listing.

b) Personal property is an important part of a sale. A clearly written understanding eliminates most disputes when you list the property.

c) Review for accuracy the listing data after it is in the MLS computer and published in the MLS book. Any errors should be immediately called to the attention of the MLS so that the correction can be made.

d) Possession date and terms are to be specific.

e) In cases of Power of Attorney, obtain a copy to ensure the validity and expiration dates.

1.4 RESERVED BUYER EXCEPTIONS TO LISTING AGREEMENT

The owner may claim an unspecified number of his prospects as reserved buyers to the agreement. It is the policy of the Company that exceptions may be for a maximum of 14 days. Write the names of the exception buyers on a separate page attached to the listing agreement. The exception prospect time period must have a specific deadline date.

1.5 LENGTH OF LISTING AGREEMENT

It is preferred by the Company that listing agreements be for a period of at least 90 days, however, not less than 60 days. Make every effort to obtain a listing of this length, thereby increasing your opportunity to sell the property. The protection period for the prospects is recommended to be 60 days. It is the listing associate’s responsibility to send the seller the protection list of prospects, (name and address) prior to the expiration of the listing. One time show listings are permissible with proper authorization signed by Owner.

1.6 THE LISTING CONTRACT WITH THE OWNER

a) Fully explain the terms of the listing agreement to all owners. Make certain it is understood.

b) The owner/s and you, as an associate of the Company, sign the listing agreement. Any change of the agreement is to be initialed by the owner. The owners are given one copy and the original is filed with the Company.

c) If the seller is paying a bonus, the specific conditions for earning the bonus must be put on the listing contract or addendum to the listing agreement.

1.7 CANCELLATION OR WITHDRAWAL OF LISTING

a) A cancellation or withdrawal, when approved by the Company management shall terminate a listing as of a certain date. Prospects who have seen the property, according to the terms of the listing agreement, remain our prospects. With this exception, the owner is otherwise free to dispose of the property in any manner following an approved cancellation.

1. A cancellation or withdrawal must have the approval of one of the firm’s Managing Brokers.

2. The owner is to be notified in writing of our agreement to cancel the listing agreement. You should furnish the owner with a list of your prospects in writing prior to the cancellation.

3. MLS is to be notified of the cancellation according to MLS procedures.

4. The listing agent releases all future rights to the property in that the property may be relisted by any associate. The original listing agent can reinstate their rights by relisting the property.

1.8 OFFICE PROCEDURE – NEW LISTINGS

a) The listing forms are to be properly and totally completed and every written listing shall be submitted to the MLS within 48 hours. A Photograph of listed property is required by MLS on all listings except listings entered into MLS under the Land classification. Photos are due within 10 day time period stated by MLS rules.

b) Late or missing information fees or penalties charged by MLS are the responsibility of the listing sales associate.

1.9 MLS CO-OP RELATIONS

a) Local MLS rules state that a listing must be promptly submitted to MLS. MLS charges a fine for late listings received by the MLS office. Any fines by MLS will be charged to the listing sales associate including late photograph fines.

b) Sales by other Brokers of our listings will be allowed. Real Estate Companies selling a listing of this Company’s will be paid 50% of the commission at Settlement. Higher or lower splits may be offered, with Managing Broker’s permission.

1.10 PROPERTY INSPECTION

a) McCraw Real Estate tours of new listings are encouraged as soon as possible during the next office tour after listed.

b) When you wish to have a property toured, as a listing associate, you will call the owner for permission for tour.

c) The listing associate is to act as a host of the property, when possible.

d) Your regular attendance on the tour is important for the knowledge you gain as well as the impression we make on the homeowners.

e) We must show respect for the homeowner’s property. Thank the owner and leave. No discussion on price, condition, etc. Leave your business card or personalized item unless discouraged by the listing agent.

1.11 SIGNS

a) A clean, bright “For Sale” sign is a most important selling tool. That sign finds buyers that want the location and like the exterior of the home. “For Sale” signs will be placed on the listed property by the next business day after the entire listing package has been turned in to the secretary. It is the agent’s responsibility to maintain signs in a clean and orderly manner while displayed. It is the listing agent’s responsibility to add their name rider and sale pending signs. A listing agent’s name rider on the “For Sale” sign will create added calls to the listing agent when calling for information of the property. It will increase your sales to see the “For Sale” sign.

b) It is vitally important that you conform to the communities’ ordinances and sign policy on each listing that you take.

c) Arrows and directional signs cannot be placed on public property. To use them you must put them on private property with the property owner’s permission.

Public property includes highways, parks, playgrounds, and parking areas on residential streets.

d) In the event an individual sign must be designed, painted and erected for special purpose listings, such as commercial, industrial, vacant land of development, the signs must have the broker’s approval as to the layout, style, installation costs, etc. Cost of special signs will be shared equally by the listing agent and the company.

e) Condominium and town house association by-laws may prohibit the use of “For Sale” signs oh the premises. When listing this type of property check the sign policy. We will abide by their policies regarding signs.

f) The sign must be removed from the listed property promptly upon closing or expiration of the listing.

1.12 SALES ASSOCIATE RIGHTS TO A LISTING

a) If a seller wishes to change listing agents, one of the Managing Brokers will be consulted and a new agent assigned to the listing. The original listing agent, as long as they are still associated with the Company, may receive a referral fee of up to 30% of the listing commission depending upon the circumstances of the case.

b) When a Company listing expires, the original listing associate forfeits all rights to the listing.

1.13 JOINT LISTING WITH ANOTHER COMPANY ASSOCIATE

a) It is the responsibility of the associate jointly listing a property to make their own arrangements, setting forth their working agreement in writing. The understanding will include advertising and open house rights, sign calls, all prospects and listings obtained through the listed property.

b) If there is not a written understanding among the associates, the Company will consider commissions and prospects on a pro rata basis (i.e. if a property is listed by 3 agents the listing commission is split 3 ways in the absence of a written agreement).

1.14 COMPETITION WITH ANOTHER COMPANY ASSOCIATE

a) If in attempting to list a property, the owners state their intention to list with a fellow associate, we recommend that you agree with the owners, that they have made a good choice and leave. It will not be in your best interests or those of the Company to continue to pursue the listing under these circumstances.

b) Call the named fellow associate and tell them the owner’s intention to list with that associate. If a buyer says they are working with a fellow associate, the fact that they do or do not have an agency agreement will not pertain. (the buyer is working with who they say they are,).

b) In like manner, an effort should be made to determine if buyer prospect is actively working with fellow associate. It will not be in your best interest or those of the Company to continue to pursue a sale under circumstances that prospect is currently working with fellow associate. Call and tell them of buyer further interest and determine who will pursue that interest.

1.15 AGENCY DISCLOSURE

a) Agency Disclosure shall be made in writing at first contact.

b) When entering into listing contracts, the listing associate must advise sellers/landlords of:
1. The Company’s policy regarding cooperation with subagents, buyer/tenants agents, or both.
2. The Company’s policy regarding cooperation with other firms.

OUR COMPANY AGENCY POLICIES:

LIMITED AGENCY FOR THE IN-HOUSE SALE

SINGLE AGENCY OTHERWISE

OFFICE POLICY

LISTING PROCEDURES

POLICY
1. McCraw Real Estate represents the seller exclusively when we are the listing agent but not the selling agent.

2. McCraw Real Estate may represent both the buyer and the seller when we are both the listing and selling agent (an in-house listing).

3. McCraw Real Estate will offer cooperation and compensation through the MLS to selling offices who wish to act as buyer’s agents and represent the buyer exclusively.

IMPLEMENTATION

1. Disclosure of Agency is made to buyer in writing before showing property.

2. Inform the seller of our policy to represent both the buyer and the seller as a limited agent on the sale of an in-house listing. Obtain seller’s consent to do so.

3. Point out to the seller that other brokerage companies may represent the buyer, seller or both. Our policy is to cooperate with and compensate those offices that represent either buyer or seller. The selling office’s agency relationship will be confirmed in writing no later than the signing of a purchase contract.

4. Offer cooperation and compensation to buyers’ agents.

5. Verify that the purchase offer properly confirms that we represent the seller exclusively as the listing agent. If an agency confirmation clause does not appear in the offer, or if it does appear but has been left blank, then confirm that we represent the seller exclusively in an agency confirmation form no later than the signing of the purchase offer.

6. Make sure the agency relationship selected by the selling agent is confirmed in the purchase contract or an agency confirmation form no latter than the signing of the purchase contract.

LIMITED AGENCY FOR THE IN-HOUSE SALE

SINGLE AGENCY OTHERWISE

OFFICE POLICY

SELLING PROCEDURES

POLICY
1. McCraw Real Estate may represent both the buyer and seller, when we are both the listing and selling agent (an in-house listing).

McCraw Real Estate represents the buyer exclusively when we are the selling agent on properties listed with any other Firm.

IMPLEMENTATION

1. Give the agency disclosure form to the buyer at the time of first substantive contact. Get a signed acknowledgment of receipt of the form.

2. Inform the buyer of our policy to represent both the buyer and the seller on the sale of an in-house listing. Obtain buyer’s consent to do so.

3. Inform the buyer of our policy to represent the buyer exclusively on the sale of property listed with any other cooperating broker.

4. On those MLS listings that do not offer compensation to buyers’ agents, either make separate arrangements with the buyer by entering into a written commission agreement with him or make a separate agreement for compensation with the listing agent in writing and preferably prior to revealing the identity of the buyer.

5. When calling the listing broker prior to preparing an offer, verify that the listing broker represents the seller exclusively and fill in the agency confirmation clause in the offer accordingly.

6. Confirm in the purchase contract that we represent the buyer exclusively as the selling agent on the sale of property listed by any other broker.

7. In all cases where an associate is selling their own listing, it is recommended that one of the Managing Brokers be present when the offer is presented to the sellers.