This is a Policies and Procedures Manual for Independent Contractor Real Estate Brokers, Agents, and Salespersons at 4 Keys RE
Introduction
The policies and procedures outlined here, along with the Exhibits attached and incorporated herein, establish fundamental guidelines and requirements, including those mandated by the relevant real estate licensing act (specifically detailed in the Exhibits for the applicable state where the Independent Contractor holds licensure) and all associated regulations and rules (collectively referred to as the "License Act," including the Illinois Real Estate License Act, as amended). These guidelines are to be followed by licensed real estate brokers, salespersons, and agents while affiliated with and sponsored by 4 Keys RE, LLC. Undefined terms herein shall carry the definitions provided in the License Act. All licensed real estate brokers or salespersons, including licensed assistants, associated with our company operate as independent contractors. They enjoy the freedom to conduct their real estate business autonomously under our sponsorship. For any questions regarding these policies or procedures, or for matters not explicitly covered herein, Independent Contractors are encouraged to consult their Managing Broker.
Ethical & other legal requirements
In compliance with legal obligations, Independent Contractors are mandated to review and maintain familiarity with various regulations, including the License Act, the National Association of Realtors Code of Ethics and Standards of Practice, the rules and regulations of local Multiple Listing Service(s) ("MLS"), as well as state, local, and federal fair housing statutes, ordinances, and regulations, and civil rights and discrimination statutes, ordinances, and regulations at state, local, and federal levels. Additionally, Independent Contractors are legally obligated to promptly report any suspected ethical breaches to their Managing Broker and/or the company's owners.
Personal Conduct
In order to comply with laws prohibiting discrimination and harassment and to safeguard the health, safety, and reputation of our Independent Contractors, employees, and the company, our digital brokerage promotes collaboration with other brokers, constructive suggestions, and a supportive atmosphere. Additionally, Independent Contractors are prohibited from utilizing office facilities, equipment, staff, or the company's name for personal business purposes. Interactions between Independent Contractors, other brokers, company employees, and staff members must be conducted with the utmost professionalism and respect. Any offensive, discriminatory, or sexually inappropriate remarks or behavior will not be tolerated and may result in disciplinary action, including termination of the Independent Contractor Agreement.
Anti-Discrimination and harassment equal employment opportunity policy
At 4 Keys RE, we uphold the principles of equality and inclusivity as mandated by law and as part of our commitment to ethical corporate conduct. We provide equal opportunity to all Independent Contractors, without regard to race, color, religion, gender, national origin, age, disability, marital status, sexual orientation, gender identity, military/veteran status, genetic information, or any other category protected by law.
Policy prohibiting harassment and discrimination
4 Keys RE is dedicated to fostering a work environment free from discrimination and harassment, where all individuals are treated with respect and dignity. Sexual harassment, in particular, is illegal under federal, state, and local laws, as well as the Realtor Code of Ethics. We define sexual harassment as unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature. This includes, but is not limited to, unwanted sexual advances, sexual jokes, verbal abuse of a sexual nature, and display of sexually suggestive objects or materials. Harassment also encompasses negative stereotyping, intimidating acts, and denigrating jokes or written/graphic material that show hostility or aversion toward an individual or group.
Persons and conduct covered
This policy applies to all individuals associated with or employed by 4 Keys RE, including Independent Contractors, agents and employees of other sponsoring brokers, and external parties such as vendors, consultants, clients, and customers. The prohibited conduct outlined in these policies is unacceptable not only in the workplace but also in any work-related setting outside the office, such as business trips, meetings, or social events.
Reporting and incident or retaliation
4 Keys RE encourages the prompt reporting of any perceived incidents of discrimination, harassment, or retaliation, regardless of the offender's identity or position. Individuals who believe they have experienced or witnessed such conduct should discuss their concerns with their Managing Broker. Reports of harassment, discrimination, or retaliation will be promptly investigated, with confidentiality maintained throughout the process to the extent possible.
Retaliation is prohibited
Retaliation against individuals for reporting harassment or discrimination, or for participating in an investigation, is a serious violation of company policy and the law. Any acts of retaliation should be reported immediately and will be thoroughly investigated and addressed.
Anti-violence and workplace bullying
4 Keys RE is committed to providing a safe and respectful work environment free from bullying and violence. Bullying, defined as repeated unreasonable behavior that poses a risk to health and safety, will not be tolerated. Examples include verbal abuse, constant criticism, and exclusion from office activities. Any reports of bullying will be taken seriously, promptly investigated, and handled confidentially and impartially. Weapons of any kind, including firearms, are strictly prohibited in all company offices or functions. Complaints alleging violations of these policies should be promptly reported to the Managing Broker.
Social Media
In the digital realm, particularly on social networking and media platforms, Independent Contractors have numerous opportunities to enhance their business endeavors. It is expected that Independent Contractors will utilize these tools for their business-related activities. The Company actively monitors certain internet and social networking and media platforms to safeguard its reputation, goodwill, and proprietary information and assets. Any actions taken by Independent Contractors on internet and/or social media platforms that, in the Company’s judgment, damage or negatively affect the Company’s reputation, goodwill, and/or proprietary information or assets may lead to termination of the relationship between the Company and the Independent Contractor.
Furthermore, Independent Contractors are required to include their first and last name in ALL account names when creating "professional" social media profiles, such as Facebook business pages, Twitter handles, and blog names. This policy aims to prevent confusion between corporate social media accounts and Independent Contractor social media accounts maintained by the Company. Independent Contractors are accountable for ensuring that their social media activities comply with all legal rules, regulations, and requirements, including those outlined in the License Act and the Advertising/Marketing and Website sections of these Policies and Procedures. Additionally, Independent Contractors are responsible for indemnifying the Company for any violations of these Policies and Procedures and/or legal infractions arising from their social media activities.
Email Accounts
As part of our policy, independent contractors will be offered the option to obtain an email address through the office for a nominal fee. This email address will serve as the primary means of communication for all official business-related correspondence. We encourage independent contractors to utilize this provided email address to ensure consistency and professionalism in their communications.
Confidentiality
Protecting the confidentiality of sensitive data is paramount to maintaining trust and integrity within our digital real estate office. All employees and contractors are entrusted with access to various forms of confidential information, including but not limited to client data, financial records, proprietary technology, and business strategies. It is imperative that such information remains safeguarded from unauthorized access, disclosure, or misuse. Employees and contractors must adhere to strict confidentiality protocols, including but not limited to maintaining secure passwords, using encrypted communication channels, and exercising caution when sharing information both internally and externally. Any breach of confidentiality, whether intentional or inadvertent, may result in disciplinary action, termination of employment, and potential legal consequences. By acknowledging and adhering to our confidentiality policies, each member of our team plays a crucial role in upholding the trust and reputation of our digital real estate office
4 Keys RE & Confidentiality
As representatives of our digital real estate brokerage, agents are entrusted with access to sensitive and proprietary information essential to the operation and success of our business. It is the duty of each agent to maintain the confidentiality of all trade secrets, client data, business strategies, and other proprietary information belonging to the brokerage. This duty extends beyond the duration of employment or engagement as an independent contractor and remains binding indefinitely. Agents must exercise caution and discretion in handling confidential information, refraining from disclosing or using such information for personal gain or to the detriment of the brokerage. Breaches of confidentiality, whether intentional or inadvertent, may result in termination of contractual agreements, legal action, and irreparable harm to the reputation and integrity of the brokerage. By acknowledging and upholding their duty of confidentiality, agents contribute to fostering a culture of trust, professionalism, and ethical conduct within our digital real estate office.
Video & Audio Recording of Third Parties
In the course of conducting business, our digital real estate office may engage in video and audio recording activities to facilitate communication, enhance security measures, or document transactions. It is imperative that all employees and contractors adhere to legal and ethical standards when recording interactions with third parties, including clients, customers, and other individuals. Prior consent must be obtained from all parties involved before initiating any recording, unless such recordings are conducted in public areas where individuals do not have a reasonable expectation of privacy. Recordings shall be used solely for legitimate business purposes and handled in accordance with applicable privacy laws and regulations. Any unauthorized use or dissemination of recorded content is strictly prohibited and may result in disciplinary action, termination of employment, and legal consequences. By maintaining integrity and respect for the privacy rights of third parties, our digital real estate office demonstrates its commitment to ethical conduct and professionalism in all interactions.
Real Estate Board Activities
Agents affiliated with our digital real estate office are required to maintain active membership with the Heartland Association of Realtors or Mainstreet Organization of Realtors. Membership with these boards ensures compliance with industry standards, access to valuable resources, and participation in professional development opportunities. Should an agent wish to be a member of an additional real estate board, they must pay the applicable secondary membership fee in addition to any associated board fees. It is mandatory for agents to maintain active membership with at least one of the specified boards to retain their affiliation with our office. Failure to maintain board membership may result in termination of the agent's license and contractual agreements with our digital real estate office. By prioritizing board membership, agents demonstrate their commitment to professionalism, ongoing education, and adherence to industry best practices.
Licensing and Continuing Education
Agents operating within our digital real estate brokerage in Illinois must adhere to all relevant state laws and regulations governing real estate licensure and continuing education. It is mandatory for all agents to obtain and maintain a valid real estate license issued by the Illinois Department of Financial and Professional Regulation (IDFPR). Additionally, agents are required to fulfill continuing education requirements as mandated by the IDFPR to ensure ongoing competency and compliance with industry standards. Our brokerage provides support and resources to assist agents in meeting their licensing and continuing education obligations, including access to approved educational providers and relevant training materials. By prioritizing licensure and continuing education, agents uphold professional standards, enhance their expertise, and contribute to the integrity of our digital real estate office in Illinois.
Auto Insurance
Agents affiliated with our digital real estate brokerage are required to maintain adequate auto insurance coverage as mandated by state law and industry standards. Given the nature of real estate work, which often involves travel to various properties and client meetings, it is essential for agents to have reliable auto insurance to protect themselves and others in the event of accidents or unforeseen incidents while conducting business-related activities. Agents must provide proof of valid auto insurance coverage upon request by the brokerage, and any changes to coverage or policy status should be promptly communicated. By maintaining proper auto insurance, agents demonstrate their commitment to safety, responsibility, and professionalism in their role within our digital real estate office.
Risk Management
Our digital real estate brokerage prioritizes proactive risk management practices to identify, assess, and mitigate potential risks inherent in the real estate industry. Agents are expected to exercise sound judgment, adhere to established policies and procedures, and communicate effectively to minimize exposure to legal, financial, and reputational liabilities. Risk management strategies encompass various aspects of real estate transactions, including but not limited to contract negotiations, property inspections, disclosures, and client interactions. Agents are encouraged to stay informed about industry trends, regulatory changes, and best practices to enhance their risk management capabilities. Additionally, our brokerage provides ongoing training, support, and resources to assist agents in navigating potential risks and promoting a culture of accountability and compliance. By prioritizing risk management, agents contribute to the overall success and resilience of our digital real estate office.
Indemnification
Agents affiliated with our digital real estate brokerage agree to indemnify and hold harmless the brokerage, its officers, directors, employees, and affiliates from and against any claims, damages, liabilities, costs, and expenses, including legal fees, arising out of or related to the agent's actions, omissions, or misconduct in the course of performing real estate services. This indemnification obligation extends to claims brought by clients, customers, third parties, or regulatory authorities. Agents are responsible for ensuring compliance with all applicable laws, regulations, and ethical standards, and shall exercise due diligence and care in their professional activities. By agreeing to indemnify the brokerage, agents assume responsibility for their actions and mitigate potential risks, thereby safeguarding the interests and reputation of our digital real estate office.
Arbitration
In the event of disputes arising between agents and our digital real estate brokerage, both parties agree to resolve such matters through arbitration rather than litigation. Arbitration provides a fair and efficient alternative dispute resolution mechanism, allowing for the timely and cost-effective resolution of conflicts. Any disputes, controversies, or claims arising out of or relating to the agent's engagement with the brokerage, including but not limited to contractual disputes, commission disputes, or allegations of misconduct, shall be submitted to binding arbitration administered by a neutral arbitrator agreed upon by both parties. The arbitration process shall be conducted in accordance with the rules and procedures of the American Arbitration Association (AAA) or any other mutually agreed-upon arbitration provider. By opting for arbitration, agents and the brokerage commit to resolving disputes in a manner that promotes fairness, impartiality, and finality, thereby minimizing disruption to business operations and preserving the professional relationship between the parties.
Commissions on real estate sales, purchases, or transfers
Commissions on real estate sales, purchases, or transfers are subject to a $350 transaction fee per transaction, unless the services of our in-house title company are utilized. It is our policy to ensure transparency and fairness in all transactions. The waiver of the transaction fee when using our in-house title company is not intended to influence the choice of title services provider, but rather to offer an additional benefit to our agents and streamline the transaction process. At our brokerage, we prioritize agent autonomy and do not enforce a minimum commission requirement. We encourage Independent Contractors to set commission rates that reflect the value of the services they provide. It is essential to consider the level of service and expertise offered when determining commission rates.
Commission statement
Whether representing a buyer or seller, Independent Contractors are required to furnish proof of the closed transaction by submitting the executed Closing Disclosure or settlement statement to the Contract Administration Department, along with all other necessary documents as outlined on the contract information sheet. Commissions will only be disbursed once the Company receives the requisite documentation and a copy of the fully executed Closing Disclosure or settlement statement. Commission checks will be issued to Independent Contractors within approximately 72 business hours of the submission of all required closing documents, provided that payment has been received by the Company.
Commission schedule
Independent Contractors' commission splits are set forth in the individual Independent Contractor Agreements and must be kept confidential per the terms of the Independent Contractor Agreement.
Commission bonuses
Independent Contractors' commission splits are set forth in the individual Independent Contractor Agreements and must be kept confidential per the terms of the Independent Contractor Agreement.
Sale or rental of personal residence
Independent Contractors have the opportunity to buy, sell, or rent their primary residence, albeit subject to a transaction fee. To qualify for exemption, the Independent Contractor must complete the 'agent sale or rental of personal residence' form and obtain signed approval from their Managing Broker. While the Company discourages self-brokering, it allows Independent Contractors to act as the broker for the sale or lease of their own primary residence under specific conditions:
- The property was not constructed or developed by the Independent Contractor.
- The Independent Contractor has owned the property for over 180 days.
- Both parties sign a seller disclosure form, and a Managing Broker of the Company acknowledges the Independent Contractor's ownership.
- An accredited written home inspection report is provided or waived in writing by the buyer.
- A state or local board-approved sales contract is utilized.
This provision is subject to change pending alterations to the Company's Errors and Omissions (E&O) policy, which the Company reserves the right to modify at its discretion. In the event that the E&O carrier does not cover a lawsuit or claim arising from the sale of an Independent Contractor's personal residence, the Independent Contractor bears the entire cost and is obligated to fully defend and indemnify the Company, as outlined in the Indemnification section of this agreement.
Purchase or Rental of Personal Residence
Independent Contractors are encouraged to apply their expertise in real estate to their own personal transactions for purchasing or renting residential properties. While not mandatory, it is advisable that all transactions, including those involving personal residences, be conducted with the same level of diligence and professionalism as client transactions. This includes adhering to all legal requirements, disclosures, and ethical standards applicable to real estate transactions in the relevant jurisdiction. Please note that these transactions are subject to a $400 transaction fee.
Listing Investment Properties
When listing investment properties, Independent Contractors must ensure full compliance with all legal and regulatory requirements governing real estate transactions. This includes accurately representing the property, providing comprehensive disclosures to potential buyers or lessees, and adhering to ethical guidelines in all dealings. Independent Contractors should leverage their knowledge and experience to effectively market investment properties, ensuring optimal exposure and representation in the marketplace. Please be aware that listing investment properties also incurs a $400 transaction fee.
Policy Overview
If an Independent Contractor (IC) lists an investment property, which includes real property in which the IC has partial ownership or control, or any property other than the IC's personal residence in which the IC has a financial interest (directly or indirectly, e.g., through a limited liability company (LLC)), the following policies and procedures must be adhered to:
Commission and Transaction Fees
The IC is required to pay the Company the required commission and transaction fees for the sale of any such investment property.
E&O Insurance Coverage Requirements
To qualify for Errors and Omissions (E&O) insurance coverage, the following conditions must be met:
Execution of Amendment
The IC must execute an "Amendment to Independent Contractor Agreement for Brokers Selling Investment Properties in Which They Have a Financial Interest."
Transaction Requirements
Seller Disclosure Forms: All applicable seller disclosure forms must be signed by the seller of the property and acknowledged in writing by the buyer prior to closing.
Home Inspection Report: A written home inspection report must be issued by a licensed home inspector or waived in writing by the buyer. For new construction properties, the seller and purchaser must agree on a written punch-list of items to be corrected following the closing of the sale.
Sales Contract: A state or local board-approved standard sales contract must be utilized. For new construction properties, a contract drafted by a licensed attorney in the state where the property is located must be used, containing an attorney review or approval provision for the buyer’s protection, allowing the buyer to propose revisions or terminate the contract.
Ownership Interest Limit: The IC’s direct or indirect ownership interest in the property must not exceed the E&O insurance maximum threshold, which may change from time to time.
D. Indemnification
The IC agrees and acknowledges that the Company does not guarantee broker E&O insurance coverage. If the E&O insurance does not cover lawsuits or other claims arising from the sale of an IC's investment property or other property that is not the IC's personal residence, the IC will bear the entire cost of any such lawsuit or claim. Additionally, the IC will be required to fully defend and indemnify the Company for any such lawsuits or claims, as detailed in the Indemnification section of this manual.
Transaction fee
For every transaction, a fee of $400 will be charged and paid to 4 Keys RE CRM. This fee is a standard charge applied to all transactions to cover administrative and processing costs. However, this transaction fee will be waived if the Independent Contractor utilizes 4 Keys Title Services for the transaction. This waiver is intended to encourage the use of our in-house title services, ensuring a streamlined and efficient closing process.
4 Keys Title Services
Our in-house title company, 4 Keys Title, offers a seamless solution for real estate transactions. When clients choose to close their transactions with 4 Keys Title, the standard $350 transaction fee is waived. This fee waiver is part of our commitment to providing integrated services that streamline the closing process. It's important to note that because this fee is paid directly to 4 Keys RE CRM rather than 4 Keys Title, this arrangement complies with RESPA (Real Estate Settlement Procedures Act) regulations, ensuring transparency and legality in all transactions.
Affiliated Business Disclosure
In accordance with regulatory requirements, all transactions involving our affiliated businesses, such as 4 Keys Title, require the mandatory use of an affiliated business disclosure. This disclosure ensures that all parties involved in the transaction are informed of the affiliation between the brokerage and 4 Keys Title. It outlines the financial interest or ownership relationship between the entities and emphasizes transparency in our business practices. This adherence to disclosure guidelines not only complies with regulatory standards but also reinforces our commitment to integrity and clarity in every real estate transaction we facilitate.
The use of Preferred Vendors
At 4 Keys RE, we prioritize creating an environment where agents benefit from working with vendors of their choice. If agents wish to add a preferred vendor to our roster, they must submit them for approval by 4 Keys RE. This approach not only empowers agents to cultivate relationships with trusted professionals but also enhances their ability to deliver exceptional service tailored to their clients' needs. By supporting agents in their choice of partners, we foster a collaborative and productive ecosystem where everyone thrives.
Listing agreements
All listing agreements and related documents can be found in the "eSignatures" section of the 4 Keys RE CRM platform. Upon submitting a listing, it is mandatory that all listing documents are signed by the managing broker. At the time of obtaining the listing agreement, the Independent Contractor must ensure they disclose in writing any financial or other interests they may have in or may receive from any third-party service provider, as required by the License Act. Additionally, the Independent Contractor must obtain an executed Affiliated Business Disclosure, which details the Company’s relationship with certain title companies and mortgage lenders.
It is important to note that although Independent Contractors listed as the "designated agent" are the agents of the client, this agency relationship does not alter the fact that the listing agreement is the property of the Company and is not transferable. All listing agreements are maintained under the ownership of the Company, ensuring compliance and continuity in all real estate transactions
Prohibition on Practicing Law
State laws and the Realtor Code of Ethics preclude Independent Contractors from providing legal advice to the public. Under no circumstances should Independent Contractors provide legal advice. All legal questions should be directed to the client's and/or consumer's attorney. Independent Contractors may not create their own legal forms and may only use legal forms available on the Company platform, which have been drafted by attorneys or approved for use by the Company’s legal counsel. All required forms must be executed by authorized parties and, if necessary, signed by an authorized representative of the Company. Forms can be found in hard copy in all offices or electronically on the Company platform.
Subject to the above prohibition on providing legal advice, Independent Contractors may assist clients in negotiating contracts using their professional expertise in market conditions and negotiating skills. They may also assist in completing approved forms by advising clients on the business and factual information necessary to complete these forms. However, Independent Contractors must not:
Advise on the legal status of any contractual agreement, except to indicate whether it has been accepted and signed;
Explain the meaning of any contractual provision;
Draft contract language for the parties to a purchase or lease transaction.
Independent Contractors must recommend that their clients and customers seek the advice of legal counsel just as they would recommend consulting other experts in matters that require particular expertise and/or licensure.
Anti-Trust Policy
4 Keys RE is committed to complying with all federal and state anti-trust laws. Independent Contractors must avoid any activities or discussions that could be perceived as anti-competitive or in violation of these laws. This includes, but is not limited to, discussions or agreements with competitors regarding commissions, fees, or pricing structures; division or allocation of markets or customers; and any other activities that could restrict competition. Independent Contractors should refrain from making statements or engaging in conduct that could be construed as an attempt to monopolize or restrain trade. Any questions or concerns about compliance with anti-trust laws should be directed to the Company’s legal counsel. Violations of this policy will be taken very seriously and may result in disciplinary action, including termination of the independent contractor agreement.
Multiple Listing Service (MLS) Policy
4 Keys RE requires all Independent Contractors to adhere to the rules and regulations of the Multiple Listing Service (MLS) to which they belong. All listings must be submitted to the MLS in a timely manner, ensuring that property information is accurate, complete, and up-to-date. Independent Contractors are responsible for maintaining the integrity of the MLS by promptly updating the status of their listings and correcting any inaccuracies.
The Company’s authorized staff employees are the only persons authorized to make a listing live, withdraw listings, and/or make changes of any kind, provided there is written approval from the client and the Company. All changes must be submitted on "Status Change Forms" or received via email. No verbal requests will be honored. Any price changes or extension dates must have the written approval of the client. If the Independent Contractor makes any changes directly in the MLS, the Independent Contractor will be held responsible for any errors or violations.
Use of the MLS is a privilege that helps facilitate cooperation and compensation between brokers, and it is essential for providing clients with maximum market exposure. Any misuse of the MLS, including but not limited to the manipulation of listing data or unauthorized sharing of MLS access, will result in disciplinary action. Independent Contractors should familiarize themselves with and follow all MLS guidelines and standards to ensure compliance and uphold the professionalism of 4 Keys RE.
Residential Rental Leases
When brokering a residential rental lease, the commission must be equal to at least one month's rent plus the transaction fee for a one-year lease. This fee is identified in the listing agreement and is part of the commission. The commission must be paid directly by the owner/lessor or with the first month's rent. Under no circumstances should an Independent Contractor ever accept a security deposit from the tenant. Security deposits should go directly from the tenant to the landlord or property management company.
For more information regarding transaction fees for rental listings, please contact the accounting department or the Company’s counsel. If the client does not pay the transaction fee, the Independent Contractor is required to cover it. The processing fee for rental applications is due at the time of submission. The Company cannot distribute credit reports to the applicant; these must be requested directly from the credit agency.
Local landlord-tenant ordinances
If brokering a residential lease within a municipality with an ordinance governing the lease of residential real property, the Independent Contractor must use a lease form that is compliant with local law. Independent Contractors should be familiar with all local ordinances governing leases and the landlord-tenant relationship, including any required disclosures. They should exercise extreme caution when encountering such laws and inform clients to seek legal counsel.
Property Management
During the course of their work with the Company, Independent Contractors are not permitted to provide any property management services. This includes, but is not limited to, collecting rents, holding security deposits or any other moneys for rental properties, responding to tenant calls after a tenant moves in, and taking responsibility for property maintenance. The Company does not support such services, and the E&O policy does not include any coverage for property management-related services.
If an Independent Contractor engages in such unpermitted activity, they do so at their own risk and shall protect, indemnify, and hold harmless the Company for all costs (including attorneys' fees), expenses, liabilities, settlements, damages, or harm caused by or arising from the provision of property management-related services. Any claims related to property management may be deducted from future commissions payable to the Independent Contractor.
Processing Transactions
All transaction documents must be submitted into the "Deals" section on the 4 Keys RE CRM platform for broker approval within 24 hours. This timely submission ensures that all transactions are reviewed and approved promptly, maintaining compliance and efficiency in our processes. Broker approval is required to release payment for any transaction. Payments will not be processed until all necessary documents are reviewed and approved by the managing broker. Failure to submit documents within the specified timeframe may result in delays and potential issues with the transaction. It is essential that Independent Contractors adhere to this policy to ensure smooth and successful transactions.
Referrals
Referral agreements are an important aspect of our business. If there is a valid referral agreement and the transaction closes with 4 Keys RE receiving the commission, the referral amount will be deducted from the gross commission. The remaining commission will then be divided after 4 Keys RE is paid in full for any applicable fees. Referral agreements must be in writing and signed by all parties involved, including the 4 Keys RE Relocation Department. The recipient of the referral fee must hold a valid license under the License Act.
All information regarding a referral agreement must be promptly provided to the Managing Broker by the referring Independent Contractor. This information must also be included on the contract information sheet. Failure to promptly provide referral information may result in the referring company not receiving the referral amount, potentially jeopardizing the closing of the transaction.
To ensure timely processing, a Federal Employer Identification Number (FEIN) or Social Security Number (SSN) for an individual must be provided at least five (5) business days in advance for referral checks to be issued. Referral checks can only be disbursed to individuals or entities authorized to receive such payments under the License Act.
Third-party service referrals or agreements
Furthermore, Independent Contractors must disclose in writing to clients any interest in third-party service providers and disclose any compensation received from referrals to these providers, as mandated by the License Act. This includes but is not limited to compensation from home warranty contracts, inspection services, legal services, insurance services, and other potential sources of referral fees.
Independent Contractors are prohibited from entering into marketing services agreements with lenders, mortgage originators, or other third-party providers of real estate settlement services without prior written approval from 4 Keys RE management. All such agreements must be reviewed by 4 Keys RE’s legal counsel before execution to ensure compliance with applicable laws, including the Real Estate Settlement Procedures Act (RESPA).
Closings
Commission statements can be requested by emailing closings@4 Keys RE.com along with contract information. Independent Contractors will have the opportunity to review and approve these statements before final processing. All transaction documents must be approved to ensure timely payment. It is crucial that Independent Contractors promptly review and approve all necessary documents to facilitate the release of payment. For any inquiries or assistance regarding closings, please contact the closings department at 4 Keys RE.
44. Duty to Notify Seller to Winterize Vacant Property
It is the duty of Independent Contractors representing sellers to advise them to winterize vacant properties during the colder months. Winterizing includes measures such as draining water pipes, securing windows and doors, and ensuring adequate heating to prevent damage from freezing temperatures. This precaution helps maintain the property’s condition and prevents potential issues that could arise due to winter weather conditions. Independent Contractors should promptly communicate these responsibilities to sellers to protect the property and facilitate a smooth transaction process.
Rural Property
Dealing with rural properties presents unique considerations compared to urban or suburban properties. Rural properties often have larger land areas, may rely on well water or septic systems, and could have easements or zoning regulations specific to rural areas. Independent Contractors handling rural properties should be knowledgeable about these aspects and inform buyers and sellers accordingly. It is essential to conduct thorough due diligence, including inspections for well water quality, septic system condition, and any environmental factors that may affect the property. Understanding these factors helps ensure that buyers and sellers make informed decisions and that transactions proceed smoothly in rural settings.
Record Retention
4 Keys RE maintains a rigorous record retention policy to ensure compliance and facilitate efficient business operations. All transaction records, including contracts, agreements, correspondence, and financial documents, must be securely stored and retained according to regulatory requirements and internal policies. Records should be organized and accessible for a minimum period as mandated by law and may be retained for longer periods at 4 Keys RE's discretion. Proper record retention is vital for protecting the interests of clients, managing legal obligations, and facilitating audits or inquiries that may arise in the course of business.
Inquiries by Government Officials
4 Keys RE respects the authority of government officials and cooperates fully with inquiries related to our business operations. If a government official, such as a regulator or investigator, requests information or conducts an inquiry, Independent Contractors must promptly notify 4 Keys RE's legal department or designated compliance officer. It is essential to provide accurate and complete information in response to such inquiries while adhering to legal requirements regarding confidentiality and data protection. Independent Contractors should refrain from discussing or disclosing sensitive information without authorization from 4 Keys RE's legal counsel or designated representative.
Subpoenas and Summonses
In the event of a subpoena or summons received by 4 Keys RE or an Independent Contractor, immediate action is required to comply with legal obligations. Subpoenas and summonses may request documents, testimony, or other forms of cooperation in legal proceedings. Independent Contractors must notify 4 Keys RE's legal department or designated compliance officer upon receipt of any legal document. Compliance with subpoenas and summonses must be coordinated through 4 Keys RE's legal counsel to ensure that all legal requirements are met while protecting the interests of 4 Keys RE and its clients. Independent Contractors should refrain from engaging in discussions or actions related to subpoenas or summonses without proper guidance from 4 Keys RE's legal representatives.
Advertising/Marketing
4 Keys RE promotes responsible and compliant advertising and marketing practices among its Independent Contractors. All advertising and marketing materials must accurately represent properties and services offered, adhere to fair housing laws, and comply with local, state, and federal regulations. Independent Contractors are responsible for ensuring that their advertising and marketing activities reflect the professionalism and integrity of 4 Keys RE. Any promotional materials, including websites, social media posts, brochures, and signage, must be reviewed and approved by 4 Keys RE’s marketing department or designated personnel before dissemination. Non-compliance with advertising and marketing guidelines may result in disciplinary action, including fines or termination of the independent contractor agreement.
Listing Property Policies
Several policies apply to all properties listed with 4 Keys RE to ensure compliance and professional conduct:
Listing Agreement Requirement: No property may be advertised, including placing a sign, without a signed written listing agreement on file with 4 Keys RE. A copy, fax, or electronic version must also be in the possession of the Managing Broker for advertising purposes.
Verification of Property Features: Information on property features cannot be advertised as "new" unless substantiated by written receipts or other evidence showing the date of work completion. If verification is received, the feature may be advertised with the appropriate date; otherwise, terms like "newer" or "recent" must be used.
Sign and Lock Box Removal: "For Sale" signs and lock boxes must be promptly removed upon request of the owner or upon expiration or withdrawal of a listing.
Sold Sign Policy: According to the REALTOR Code of Ethics, only the sold sign of the listing broker may be displayed prior to closing unless otherwise consented by the listing agent and with the seller's permission. If 4 Keys RE is the cooperating broker, a sold sign may be placed post-closing with the buyer's written permission.
Personal Advertising: Individual agents are encouraged to engage in personal advertising, subject to approval by 4 Keys RE. All personal advertising must include the 4 Keys RE name as required by the License Act and rules.
Advertising Compliance: All advertising, including personal and team advertising, must comply with the License Act. This includes accuracy of any statistics used, proper use of the 4 Keys RE logo/name, and inclusion of the 4 Keys RE office address.
Use of Titles: Only the Managing Broker designated by 4 Keys RE may use the term "Managing Broker" in advertising, regardless of the Independent Contractor’s licensure.
Federal Truth in Lending Compliance: Any advertising containing financial terms must comply with Federal Truth in Lending laws (Regulation Z). Triggering terms require specific disclosures such as down payment amounts, repayment terms, and Annual Percentage Rate (APR).
Prohibited Advertisements: Advertisements of interest rates are not permitted; only the Annual Percentage Rate, calculated according to applicable law, can be advertised.
Electronic Advertising: All forms of electronic advertising, including the internet, must comply with advertising rules and regulations. Information must be accurate, timely, and include the 4 Keys RE name.
These policies are essential to maintaining professionalism, compliance with legal requirements, and ensuring accurate representation of listed properties.
Do Not Call/Text/Fax/Email/Social Media Policy
4 Keys RE strictly prohibits the use of unsolicited communications for marketing purposes, including calls, text messages, faxes, emails, and social media messages, to individuals who have not provided express consent to receive such communications. Independent Contractors must comply with all applicable laws, such as the Telephone Consumer Protection Act (TCPA) and the CAN-SPAM Act, when engaging in marketing activities.
If Independent Contractors purchase phone capabilities on our 4 Keys RE CRM platform, they must ensure that their local number is A2P (Application-to-Person) verified. Detailed instructions on how to verify their number can be found in the help documentation provided by 4 Keys RE. Additionally, the Do Not Disturb (DND) function will automatically activate for recipients who have opted out within the 4 Keys RE CRM CRM. Prior to initiating any communication, Independent Contractors must ensure that recipients have opted-in to receive communications, where required by law. Failure to adhere to this policy may result in severe penalties, including legal action and financial liabilities. Independent Contractors should consult 4 Keys RE’s legal department or designated compliance officer for guidance on compliance with do not call/text/fax/email/social media regulations.
Marketing Policy
4 Keys RE encourages Independent Contractors to engage in marketing activities that adhere to legal regulations and uphold ethical standards. While Independent Contractors have the freedom to market properties creatively and effectively, it is essential to ensure all marketing efforts comply with local, state, and federal laws, as well as industry standards such as the REALTOR Code of Ethics. This includes accurate representation of properties, proper use of advertising materials, and respect for consumer privacy rights. Independent Contractors are encouraged to seek approval for marketing plans and materials from 4 Keys RE to ensure alignment with company guidelines and to leverage support for successful campaigns. By following these guidelines, Independent Contractors can confidently promote properties while maintaining professionalism and compliance with regulatory requirements.
Recordkeeping
Proper recordkeeping is crucial for ensuring compliance with legal and regulatory requirements. Independent Contractors are required to maintain accurate and thorough records of all transactions, communications, and agreements related to their real estate activities. These records must be securely stored and readily accessible for review by 4 Keys RE or relevant authorities. All transaction documents, including contracts, disclosures, and correspondence, should be uploaded to the designated "deals" section on the 4 Keys RE CRM platform within 24 hours for broker approval. Failure to maintain accurate records can result in legal penalties, disciplinary action, and potential loss of commissions. Independent Contractors are encouraged to familiarize themselves with 4 Keys RE's recordkeeping policies and to seek guidance from the compliance department when necessary.
Blast Faxing
Blast faxing, or the sending of unsolicited faxes to multiple recipients, is strictly regulated under the Telephone Consumer Protection Act (TCPA). Independent Contractors must obtain prior express permission from recipients before sending any marketing or promotional faxes. All fax communications must include a clear opt-out option for recipients who no longer wish to receive such messages. 4 Keys RE requires that Independent Contractors adhere to these regulations to avoid legal repercussions and to maintain the integrity of their marketing practices. Any violations of these guidelines may result in disciplinary action, including fines and termination of the independent contractor agreement.
Federal Spam Email Requirements
Compliance with federal spam email requirements, as outlined in the CAN-SPAM Act, is mandatory for all email communications. Independent Contractors must ensure that all marketing emails include accurate sender information, a clear and conspicuous subject line, and an easy-to-find unsubscribe link for recipients. Emails should not contain misleading or deceptive information. The 4 Keys RE CRM platform provides tools and templates to help Independent Contractors comply with these requirements. Additionally, Independent Contractors should promptly honor all opt-out requests within 10 business days to avoid penalties. Failure to comply with federal spam email regulations can result in significant fines and damage to 4 Keys RE's reputation. For further guidance, Independent Contractors should consult 4 Keys RE's legal department or review the help documentation on the 4 Keys RE CRM platform.
The DMCA
The Digital Millennium Copyright Act (DMCA) establishes legal standards for protecting copyrighted material in the digital age. Independent Contractors must adhere to the DMCA when using digital content in their marketing and communications. This includes ensuring that all images, videos, music, and other digital content used in advertisements, listings, and promotional materials are either owned by the Independent Contractor, properly licensed, or fall under fair use provisions. Unauthorized use of copyrighted material can lead to significant legal consequences, including fines and lawsuits. 4 Keys RE provides resources and guidelines to help Independent Contractors comply with the DMCA, and any potential copyright infringement issues should be promptly reported to 4 Keys RE's compliance department. By following DMCA guidelines, Independent Contractors can protect themselves and 4 Keys RE from legal risks associated with digital copyright infringement.
Drone Photography
Drone photography has become a valuable tool for showcasing properties from unique and captivating angles, providing potential buyers with a comprehensive view of the property and its surroundings. Independent Contractors are encouraged to utilize drone photography to enhance their listings and attract more interest. However, it is the responsibility of the Independent Contractor to cover the costs associated with hiring a professional drone photographer. 4 Keys RE offers access to SuprPhoto, a service that can be conveniently ordered from the home screen or through the 4 Keys RE CRM Platform, providing high-quality drone photography at competitive rates. When using drone photography, Independent Contractors must ensure compliance with all applicable laws and regulations, including obtaining necessary permits and adhering to FAA guidelines.
Home Staging
Home staging is an effective strategy for making properties more appealing to potential buyers by highlighting their best features and creating an inviting atmosphere. While home staging can significantly impact a property's marketability and sale price, the costs associated with staging are to be borne by the Independent Contractor. 4 Keys RE supports its agents by providing access to SuprPhoto, which includes home staging services that can be easily ordered through the 4 Keys RE CRM Platform. Utilizing professional staging services can give listings a competitive edge, and Independent Contractors are encouraged to invest in staging to maximize the property's appeal. As with all marketing expenses, the costs should be discussed and agreed upon with the seller in advance.
Open House Signs
Open house signs can be a useful tool for drawing attention to property showings and attracting potential buyers. However, 4 Keys RE has no requirement for Independent Contractors to use open house signs; their use is entirely at the agent's discretion. As a digital office, 4 Keys RE does not provide open house signs for rent or purchase within the office. Independent Contractors who wish to use open house signs are responsible for procuring and placing them in compliance with local regulations and community guidelines. Utilizing digital marketing and online platforms to promote open houses is also highly encouraged to maximize visibility and reach.
Websites
Having a professional and compliant website is essential for Independent Contractors to effectively market properties and build their brand. Websites must adhere to all relevant regulations, including accurate representation of listings, proper use of licensing information, and compliance with the REALTOR Code of Ethics. To support Independent Contractors in creating and maintaining compliant websites, 4 Keys RE offers website services through 4 Keys RE CRM. These services ensure that all necessary legal and regulatory requirements are met while providing a user-friendly and attractive platform for showcasing properties. Independent Contractors are encouraged to utilize 4 Keys RE CRM's website services to enhance their online presence and streamline their digital marketing efforts.
Flyers/Brochures (Property Promotional) / Business Cards
Flyers, brochures, and business cards are important tools for Independent Contractors to promote properties and establish their personal brand. It is crucial that these promotional materials comply with all relevant laws and regulations, including accurate property information, proper licensing disclosures, and adherence to the REALTOR Code of Ethics. 4 Keys RE offers design and printing services for flyers, brochures, and business cards through 4 Keys RE CRM, ensuring that all materials meet compliance standards and present a professional image. Independent Contractors are encouraged to utilize 4 Keys RE CRM's services to create high-quality, compliant promotional materials that effectively market their properties and services.
Office Policies
4 Keys RE maintains a set of office policies designed to ensure a professional, compliant, and efficient work environment. All Independent Contractors are expected to adhere to these policies strictly. This includes compliance with federal, state, and local real estate laws, as well as the rules and guidelines set forth by 4 Keys RE. Professional conduct, ethical behavior, and respect for colleagues and clients are paramount. Independent Contractors are responsible for keeping accurate records, submitting required documentation promptly, and following all procedures related to transactions, marketing, and client interactions. Regular training sessions and updates on policy changes will be provided, and Independent Contractors are encouraged to participate actively. Any questions or clarifications regarding office policies should be directed to the Managing Broker or the relevant department within 4 Keys RE. Non-compliance with office policies may result in disciplinary action, including potential disassociation from 4 Keys RE.
Use of Assistants
Independent Contractors at 4 Keys RE may employ both unlicensed and licensed assistants to aid in their real estate activities. However, it is crucial to adhere strictly to the guidelines set forth by the License Act to avoid any violations or potential penalties.
Unlicensed Assistants
Unlicensed assistants can perform various administrative and supportive tasks, such as answering phones, submitting listings to MLS, assembling documents for closings, and other clerical duties. They are strictly prohibited from performing any activities that require a real estate license. These include hosting open houses, showing properties, negotiating transactions, or interpreting contracts. Independent Contractors are responsible for ensuring their unlicensed assistants do not engage in these restricted activities. Violations can result in immediate disassociation from 4 Keys RE and potential legal consequences. Unlicensed assistants must be classified appropriately as either employees or independent contractors. Independent Contractors using unlicensed assistants should consult legal counsel to determine the correct classification and ensure compliance with employment laws. 4 Keys RE provides an "Independent Contractor Agreement for Unlicensed Personal Assistant Services" and an "Unlicensed Assistant Compensation and Confidentiality Agreement" for convenience but does not guarantee these agreements' sufficiency for legal compliance.
Licensed Assistants
Licensed assistants can perform activities that require a real estate license and must have their licenses sponsored by 4 Keys RE. They must also adhere to the policies and procedures of 4 Keys RE and execute an Independent Contractor Agreement. Licensed assistants can receive commissions only from 4 Keys RE and not from any other source. Independent Contractors should formalize their commission-sharing agreements with their licensed assistants to avoid disputes. Similar to unlicensed assistants, licensed assistants must be correctly classified as employees or independent contractors. Misclassification can lead to significant legal and financial risks. Independent Contractors are advised to consult their legal counsel regarding the classification and compliance issues related to licensed assistants. 4 Keys RE provides a "Team Agreement" and "Licensed Assistant Compensation and Confidentiality Agreement" for guidance but does not guarantee their adequacy for legal protection.
Independent Contractors are solely responsible for the supervision, performance, and actions of their assistants, whether licensed or unlicensed. They must indemnify and hold 4 Keys RE harmless from any claims, liabilities, or expenses arising from the actions of their assistants. This includes any claims related to employment classification, compensation, and compliance with real estate laws and regulations.
Teams Policy
At 4 Keys RE, teams of Independent Contractors operate under guidelines to ensure compliance with real estate regulations and ethical standards. All team members must hold their real estate licenses with 4 Keys RE, and it is the responsibility of team leaders to define their team’s services and determine agent splits within the team structure. Any team agreements detailing commission splits must be submitted to 4 Keys RE for verification and record-keeping purposes. While 4 Keys RE provides a "Team Agreement" as a resource, its use is optional, and Independent Contractors using this agreement acknowledge that it is provided for convenience without guarantees or warranties from 4 Keys RE. It is advisable for team leaders and members to seek independent legal counsel to review and customize any Team Agreement to their specific needs.
Additionally, team members must adhere to disclosure requirements regarding Dual Agency. It is crucial for team members to openly discuss Dual Agency implications with clients and obtain signed consents when necessary. In transactions where different team members represent the buyer and seller, Designated Agency principles apply, requiring strict confidentiality of client information within the team. Failure to maintain confidentiality can result in Dual Agency, necessitating consent from all affected parties. Effective systems must be in place within teams to manage information securely, ensuring that no confidential details are disclosed improperly. All team advertising must prominently feature 4 Keys RE’s name and logo in compliance with state laws, and any use of team names in advertising must include specific disclosures to clarify the roles and affiliations of team members.
Team dual agency disclosures
Dual agency within a real estate team occurs when different members of the team represent both the buyer and seller in the same transaction. In such cases, it is crucial for team members to navigate Designated Agency rules diligently. Each client's confidential information must be safeguarded and not shared with team members representing the opposing party. This requires stringent protocols to prevent inadvertent disclosures and to ensure that each client receives undivided loyalty and confidentiality. Team leaders must establish clear guidelines and communication channels to manage potential conflicts of interest, and all disclosures and consents required by law must be obtained from clients involved in dual agency transactions to uphold transparency and ethical standards in real estate practice.
Team advertising
Team advertising in real estate must adhere to strict guidelines to ensure compliance with regulatory requirements and maintain transparency. All team advertising must prominently feature the company name and logo, in accordance with the License Act. Additionally, any team-specific branding or domain names used in advertising must clearly indicate the affiliation with the sponsoring broker and disclose that the team is not independently listing any real estate for sale. This disclosure ensures that consumers are aware of the team's role and affiliation within the brokerage structure. Furthermore, all personalized team websites and marketing materials must comply with the company's advertising policies, which include accurate representation of services offered and adherence to ethical standards in real estate marketing practices. By following these guidelines, real estate teams can effectively promote their services while maintaining compliance with legal and ethical standards.
Termination of association
Termination of association with an agent at our brokerage may occur under specific circumstances, such as non-membership in our affiliated local boards, which currently include Mainstreet and NSBAR. If an agent wishes to be associated with a different board, they must independently arrange and finance a secondary membership through 4 Keys RE CRM. This policy ensures that all agents adhere to regulatory requirements and maintain active membership in recognized local boards, which is crucial for ethical and operational standards within our brokerage. Agents are encouraged to maintain their board memberships to facilitate ongoing professional development and adherence to industry standards.
Marketing and Office Expenses
Agents are responsible for covering their own marketing and office expenses incurred while conducting business under our brokerage. This includes costs associated with advertising, promotional materials, signage, and office supplies. All expenses must be documented and submitted for reimbursement according to the company's policies and procedures. Agents are encouraged to utilize the resources and tools provided by 4 Keys RE CRM for efficient and cost-effective marketing solutions. Any expenses incurred must be approved in advance by the Managing Broker or designated authority within the brokerage.
Credit Cards
Our brokerage does not provide credit cards for agents. Agents are responsible for managing their own financial transactions, including expenses and client transactions, using their personal or business credit cards. All credit card transactions must comply with applicable financial regulations and be documented accordingly.
Monthly Invoices
Unlike some brokerages, we do not issue monthly invoices to agents. Instead, agents are expected to maintain records of their transactions and expenses.. This approach allows agents to manage their finances efficiently and ensures transparency in financial reporting within the brokerage
Dental and Health Insurance
Please note that we do not offer dental or health insurance benefits to our agents, as they are all considered 1099 independent contractors. Agents are responsible for securing their own health insurance coverage and managing any related benefits independently. We encourage all agents to explore available options and make informed decisions regarding their healthcare needs. If you have any questions or need assistance navigating health insurance choices, we recommend consulting with a qualified insurance provider or financial advisor for personalized guidance.
Risk management fees
Drug and Alcohol Policy
At 4 Keys RE, we understand that our agents lead diverse personal lives. While we respect your freedom outside of work, we require that agents refrain from any behavior involving drugs or alcohol that could adversely affect our brokerage's reputation or operations. It's essential to maintain a professional image and uphold legal responsibilities at all times. Violation of this policy, especially if it reflects poorly on our company, may lead to disciplinary measures, including termination of association. We prioritize a safe, respectful, and positive environment for all members of our team and clients alike
Alcohol
While we respect personal choices, we expect agents to consume alcohol responsibly and ensure it does not impact their professional conduct or reflect negatively on 4 Keys RE. Excessive or inappropriate consumption that compromises work performance or our company's reputation is not tolerated.
Legal Drugs
Agents are free to use legally prescribed or over-the-counter drugs as necessary. However, it is crucial that such usage does not impair job performance, jeopardize safety, or detract from professional responsibilities. Abuse or misuse of legal drugs that affects work conduct or company image will result in disciplinary action.
Illegal Drugs
4 Keys RE strictly prohibits the use, possession, distribution, or sale of illegal drugs by any agent. Engaging in such activities is not only illegal but also contrary to our values and the law. Any involvement with illegal drugs, both on and off-duty, that reflects poorly on the company will lead to immediate termination of association.
Independent contractors licensed to practice law
Independent contractors who are licensed to practice law bring valuable expertise to 4 Keys RE. While their legal qualifications are recognized, it's important to clarify that their role within our brokerage must adhere strictly to real estate activities. They are expected to maintain compliance with all legal and ethical standards governing the real estate industry. Any legal advice provided must be within the scope of their real estate practice and should not conflict with their obligations as independent contractors of 4 Keys RE. Their legal expertise enhances our ability to provide comprehensive services to clients while upholding the highest professional standards.
Record Retention and Destruction Policy
4 Keys RE maintains a comprehensive record retention and destruction policy to ensure the proper handling of all documents and records in accordance with legal and regulatory requirements. Records related to real estate transactions, client communications, financial transactions, and other business activities are retained for a specified period to meet compliance obligations and operational needs. The retention period for each category of records is determined based on the applicable legal, regulatory, and business requirements. Upon reaching the end of their retention period, records are securely destroyed to prevent unauthorized access and to maintain confidentiality. This policy applies to both physical and electronic records maintained by 4 Keys RE and its independent contractors.
Record Retention Schedule
The record retention schedule outlines the duration for which various types of documents and records must be retained by the brokerage. This schedule ensures compliance with legal, regulatory, and business requirements. All agents and staff are responsible for adhering to the retention periods specified in this policy. 4 Keys RE CRM will store all necessary documents and communications on behalf of the agents, ensuring they are securely stored and accessible for the entire retention period. After the retention period, records should be properly disposed of in accordance with the destruction procedures.
Record Type Retention Period
Sales or transaction records excluding Contracts 7 years
Contracts and related correspondence (including any proposal or direction 7 years
that resulted in the contract and all other supporting documentation)
Incident reports and claims (settlement cases) 7 years
All required disclosures Retention Period 7 years
Transactional Records
Transactional records include all documents related to the sale, purchase, lease, or rental of properties handled by the brokerage. This includes contracts, agreements, closing statements, inspection reports, and any other documentation generated during a real estate transaction. These records must be retained for a minimum of seven years from the date of the transaction's completion. 4 Keys RE CRM will store all necessary transactional records, ensuring they are complete, accurate, and securely stored.
Correspondence and Internal Memoranda
Correspondence and internal memoranda encompass all written communication related to the brokerage's operations, including emails, letters, meeting notes, and internal reports. These documents must be retained for a minimum of three years. 4 Keys RE CRM will store all necessary correspondence and internal memoranda on behalf of the agents. Important correspondence that may have legal or operational implications should be flagged and stored in a manner that ensures its preservation and easy retrieval.
Electronic Documents
Electronic documents include any records stored in digital format, such as emails, PDFs, word processing files, spreadsheets, and databases. These documents must be managed with the same level of care as physical documents. All electronic documents related to transactions, correspondence, and other business activities must be retained according to the relevant retention schedule. 4 Keys RE CRM will store all necessary electronic documents, ensuring regular backups are performed to prevent data loss and secure methods are used for the storage and eventual destruction of electronic records.
Definition of License Act
The License Act refers to the Illinois Real Estate License Act, which governs the licensing and regulation of real estate professionals within the state of Illinois. This Act outlines the qualifications, responsibilities, and conduct expected of licensed real estate brokers, managing brokers, and leasing agents. Compliance with the License Act is mandatory for all agents and brokers operating under our brokerage.
Ethical and Other Legal Requirements
All agents and brokers are required to adhere to the highest standards of ethical conduct and comply with all applicable laws and regulations, including the License Act. This includes, but is not limited to, honesty, integrity, and transparency in all dealings with clients, colleagues, and third parties. Agents must also comply with the National Association of Realtors (NAR) Code of Ethics and any other professional standards set forth by relevant industry organizations. Failure to comply with these ethical and legal requirements may result in disciplinary action, including termination of association with the brokerage.
Dual Agency
Dual agency occurs when a real estate agent or broker represents both the buyer and the seller in the same transaction. While dual agency is permitted under Illinois law, it requires full disclosure and written consent from both parties. Agents must clearly explain the implications of dual agency to their clients, including the potential for conflicts of interest, and ensure that all parties understand and agree to the arrangement. Failure to properly disclose and obtain consent for dual agency can result in severe penalties and damage to the brokerage’s reputation.
Agency Disclosure Policy
Our agency disclosure policy requires that all agents provide written disclosure to clients regarding the nature of their agency relationship at the earliest possible opportunity. This includes whether the agent is acting as a buyer’s agent, seller’s agent, dual agent, or designated agent. Disclosure forms must be completed, signed by all parties, and retained in the transaction file. 4 Keys RE CRM will store these documents on behalf of the agents. This policy ensures transparency and helps maintain trust and integrity in all client relationships.
Mandatory Exclusive Agency Events
Any Independent Contractor working in the following circumstances MUST act only as an exclusive agent and may not act as a dual agent:
The Independent Contractor is buying or selling property for themselves, or any entity in which they will have an ownership interest.
The Independent Contractor is working with their immediate family, defined as spouse, mother, father, brother, sister, children, any of their spouses, or any entity owned fully or partially by any of these persons.
Strongly Recommended Exclusive Agency Events
It is strongly recommended that any Independent Contractor working in the following circumstances act only as an exclusive agent and not as a dual agent:
The Independent Contractor is working with any relative by blood or marriage not in their immediate family as defined above.
The Independent Contractor is working with a close friend, business associate, or long-term past customer or client.
The agent is working with a legal entity in which any of those listed above have an ownership interest.
Agency Issues with Teams
When team members represent both sides of a transaction, they are not automatically considered dual agents. Confidential information of opposing parties must be protected from team members on the opposite side of the transaction. If the team practices dual agency, written disclosure and consent must be obtained before team members act as dual agents. If the head of the team or team captain is named as the designated agent on all brokerage agreements, dual agency is involved. Additionally, if the team advertises to the public that the team represents both sides, this likely creates a dual agency situation requiring disclosure and consent from all parties.
Earnest money checks
At 4 Keys RE, we do not hold earnest money checks. However, if agents choose to use our in-house title company, the title company is able to hold earnest money checks on their behalf. Additionally, we offer an electronic deposit option for convenience and efficiency in managing earnest money transactions electronically.
Release of earnest money - contract termination
In the event of contract termination, the release of earnest money is handled according to the terms outlined in the contract and applicable real estate laws. Upon mutual agreement by all parties involved or as directed by a court order, earnest money deposits will be released. This process ensures that all contractual obligations are met fairly and transparently, providing clarity and resolution in accordance with legal standards and industry practices.
Chicago Residential Landlord Tenant Ordinance (RLTO)
Security deposits for residential rental properties in the City of Chicago are governed by Section 5-12-080 of the RLTO. This ordinance applies to every rental agreement for a dwelling unit in Chicago, excluding units in owner-occupied buildings with six or fewer units. Under RLTO guidelines, tenants must pay their security deposit separately from rent payments using a separate check. Landlords are required to deposit these funds into a separate, interest-bearing account in an Illinois-based financial institution. Immediate written receipts detailing the deposit amount, recipient's information, and property description must be provided to tenants. Electronic payment receipts must comply with specified digital signature standards. Landlords must disclose deposit details in rental agreements or notify tenants in writing within 14 days of receipt. For deposits held longer than six months, landlords must pay accrued interest to tenants annually, based on rates set by the City Comptroller. Upon lease termination, landlords must itemize any deductions within 30 days and return the remaining deposit within 45 days. Failure to comply may result in penalties, including damages up to twice the deposit amount, early lease termination rights for tenants, and potential legal fees.
Broker price opinions and comparative market analyses
Independent Contractors are permitted to create Broker Price Opinions (BPOs) at their discretion, but each BPO transaction is subject to a $350 transaction fee, as mandated by 4 Keys RE. This fee ensures that all compensation for BPO services flows through 4 Keys RE, adhering to regulatory requirements and company policies. BPOs involve providing estimates of property values and related market analyses, and must be conducted in accordance with the Illinois License Act. Detailed guidelines and forms to assist Independent Contractors with BPOs are available through the 4 Keys RE platform.
Prize Promotions
Prize promotions within the agency must comply with all relevant laws and regulations governing contests, sweepstakes, and other promotional activities. Agents are encouraged to engage in promotional activities that enhance client engagement and promote the agency's brand. Any prize promotions must be clearly communicated to participants, detailing eligibility criteria, prize details, and the terms and conditions of participation. Agents should ensure that all promotional materials accurately represent the prizes offered and adhere to ethical standards in advertising. Compliance with local, state, and federal laws regarding prize promotions is mandatory to avoid legal complications and maintain the agency's reputation for integrity and transparency in all marketing efforts.
Title Insurance: Independent Contractors are required to advise purchasers on the importance of obtaining fee title insurance policies from sellers, which should be issued or certified up to the approximate closing date of the transaction. Agents have the option to work with 4 Keys Title, an entity underwritten by ATN Title and First American Title, to facilitate the issuance of these policies. Fee title insurance provides protection to purchasers against potential title defects or claims that may arise after the property transfer. It is crucial for ensuring the security of the property investment and addressing any unforeseen legal issues related to the property's ownership. Agents should ensure that purchasers are informed about the benefits of title insurance and the necessity of securing it as part of the property transaction process.
Closing Statements
Independent Contractors involved in real estate transactions' closings must ensure that a comprehensive and detailed closing statement is provided to both the buyer and seller. This statement, signed by the broker or associate broker, must meticulously outline all receipts and disbursements affecting each party. Even if the transaction is handled by a bank, title company, or another settlement services provider, the broker is required to sign the final closing document and assumes responsibility for its accuracy.
Other Compensation
Independent Contractors who are eligible to receive commissions directly or indirectly from a sale are prohibited from accepting referral fees or any other form of compensation from providers of abstracts, home warranties, title insurance, or other settlement services without prior written consent from the parties with whom the Independent Contractor maintains an agency relationship. Such fees must also comply with the Real Estate Settlement Procedures Act and other relevant laws governing such transactions.
Commission adjustment
Any time there is a commission adjustment, after the execution of a representation agreement, the License Act requires that the parties execute a written amendment to the listing contract or buyer agency agreement.
Offers and Counter Offers: Independent Contractors must promptly present all offers and counter-offers to and from the principals in a transaction unless a principal has waived the obligation in writing. When a transaction results in a contract by which the broker or managing broker, as agent, is a purchaser, the broker or managing broker, or both, must disclose in writing that he or she is a principal.
Agency Disclosures and Exclusive Agency: In all transactions, Independent Contractors are required to provide written agency disclosures to all parties involved. These disclosures must clearly outline the nature of the agency relationship, including whether the agent is representing the buyer, seller, or both. When working under an exclusive agency agreement, agents must adhere strictly to the terms outlined in the contract. Any deviation from these terms may result in disciplinary action or termination of the agency agreement.