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SUTTON GROUP - CANWEST Sutton Group Canwest Version 2013.01 BROKERAGE POLICY & PROCEDURES MANUAL v.2013.01 TABLE OF CONTENTS GENERAL INFORMATION Section DOCUMENTS & CLOSING PROCEDURES Section Disclaimer 1.1 Completion of Sales Information 10.1 Statement of Goals 1.2 Trade Record Information 10.2 Mission Statement 1.3 Waivers and Amendments 10.3 Equal Opportunity 1.4 Final Inspections 10.4 Substance Abuse and Smoking Policy 1.5 Record Retention 10.5 Sexual Harassment 1.6 COMMISSIONS ORGANIZATIONAL PROCEDURES Competition Act 11.1 Licensing 2.1 Compensation/Remuneration 11.2 Membership in Organized Real Estate 2.2 Commissions Payable 11.3 Independent Contractor/Employee Status 2.3 Commission Disputes with the Public 11.4 ADMINISTRATIVE PROCEDURES Commission Disputes within the Brokerage 11.5 Confidentiality 3.1 Commission Disputes w/ Other Brokerages 11.6 Ability to Bind Brokerage 3.2 Deductions from Commissions 11.7 Associates Being Paid to Corporations 3.3 BUYING/SELLING PERSONAL REAL ESTATE Automobile Liability Insurance 3.4 Sale & Purchase of Property for Personal Account 12.1 Errors and Omissions Insurance 3.5 Purchase of Real Estate Listed with Brokerage 12.2 Associate Expenses and Accounts 3.6 MARKETING Office Hours 3.7 Guaranteed Sales 13.1 CONDUCT OF ASSOCIATES Incentives and Inducements 13.2 Dress Code 4.1 Broker-Approved Inducements 13.3 Automobile 4.2 RELOCATIONS AND REFERRALS Sales Meetings 4.3 Relocation Policy 14.1 OFFICE DUTY/OPPORTUNITY Referral Disclosure 14.2 Purpose 5.1 Referral Agreement 14.3 Rotation 5.2 Referral Fees to Unlicensed Individuals 14.4 AGENCY REQUIREMENTS Payment of Referral Fees 14.5 Brokerage Agency Policy 6.1 PERSONAL ASSISTANTS Written Service Agreements 6.2 Licensed versus Unlicensed 15.1 LISTINGS Typical Duties of Unlicensed Assistants 15.2 Brokerage Commission Rates 7.1 Duties That Cannot be Performed by Unlicensed Asst. 15.3 Seller Brokerage Agreements 7.2 Office Policy 15.4 Cooperation with Other Brokerages 7.3 TERMINATION OF ASSOCIATE Signage 7.4 Keys 16.1 Cancellation, Withdrawal or Termination 7.5 Listings 16.2 Co-Listings with Company Associate 7.6 Proprietary Information 16.3 Competition with Company Associate 7.7 Commissions 16.4 Change of Seller’s Associate 7.8 PRIVACY COMPLIANCE Mere Posting Listings 7.9 Policy Statement 17.1 SHOWINGS AND PROSPECTS Privacy Compliance Manager 17.2 Showing Listings 8.1 Collection, Use and Disclosure of Personal Data 17.3 Prospect Loyalty 8.2 Disclosure of Information for New Purposes 17.4 Associate Vacations/Absenteeism 8.3 Protecting Information 17.5 Open House Prospects 8.4 Accuracy of and Access to Information Collected 17.6 PURCHASE AND SALE AGREEMENTS FINTRAC REPORTING Disclosure of Agency Relationship 9.1 Client/Customer Identification 18.1 The Purchase Agreement 9.2 Suspicious Transactions 18.2 Trust Deposits 9.3 Terrorist Property 18.3 Interest Bearing Trust Deposits 9.4 WORKPLACE SAFETY Signatures 9.5 Safety First 19.1 Offers on In-House Listings 9.6 INTERNET & WEB MARKETING Offers on Other Brokerage’s Listings 9.7 Social Media 20.1 Presenting the Offer 9.8 Presenting Multiple Offers 9.9 Accepted Offers 9.10 Counter Offers 9.11

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Page 1: Brokerage Policy and Procedures - Amazon S3 · 2.2 Membership in Organized Real Estate Sutton Group - Canwest is a member of the Calgary Real Estate Board, Alberta Real Estate Association

SUTTON GROUP - CANWEST

Sutton Group – Canwest Version 2013.01

BROKERAGE POLICY & PROCEDURES MANUAL v.2013.01

TABLE OF CONTENTS GENERAL INFORMATION Section DOCUMENTS & CLOSING PROCEDURES Section

Disclaimer 1.1 Completion of Sales Information 10.1

Statement of Goals 1.2 Trade Record Information 10.2

Mission Statement 1.3 Waivers and Amendments 10.3

Equal Opportunity 1.4 Final Inspections 10.4

Substance Abuse and Smoking Policy 1.5 Record Retention 10.5

Sexual Harassment 1.6 COMMISSIONS

ORGANIZATIONAL PROCEDURES Competition Act 11.1

Licensing 2.1 Compensation/Remuneration 11.2

Membership in Organized Real Estate 2.2 Commissions Payable 11.3

Independent Contractor/Employee Status 2.3 Commission Disputes with the Public 11.4

ADMINISTRATIVE PROCEDURES Commission Disputes within the Brokerage 11.5

Confidentiality 3.1 Commission Disputes w/ Other Brokerages 11.6

Ability to Bind Brokerage 3.2 Deductions from Commissions 11.7

Associates Being Paid to Corporations 3.3 BUYING/SELLING PERSONAL REAL ESTATE

Automobile Liability Insurance 3.4 Sale & Purchase of Property for Personal Account 12.1

Errors and Omissions Insurance 3.5 Purchase of Real Estate Listed with Brokerage 12.2

Associate Expenses and Accounts 3.6 MARKETING

Office Hours 3.7 Guaranteed Sales 13.1

CONDUCT OF ASSOCIATES Incentives and Inducements 13.2

Dress Code 4.1 Broker-Approved Inducements 13.3

Automobile 4.2 RELOCATIONS AND REFERRALS

Sales Meetings 4.3 Relocation Policy 14.1

OFFICE DUTY/OPPORTUNITY Referral Disclosure 14.2

Purpose 5.1 Referral Agreement 14.3

Rotation 5.2 Referral Fees to Unlicensed Individuals 14.4

AGENCY REQUIREMENTS Payment of Referral Fees 14.5

Brokerage Agency Policy 6.1 PERSONAL ASSISTANTS

Written Service Agreements 6.2 Licensed versus Unlicensed 15.1

LISTINGS Typical Duties of Unlicensed Assistants 15.2

Brokerage Commission Rates 7.1 Duties That Cannot be Performed by Unlicensed Asst. 15.3

Seller Brokerage Agreements 7.2 Office Policy 15.4

Cooperation with Other Brokerages 7.3 TERMINATION OF ASSOCIATE

Signage 7.4 Keys 16.1

Cancellation, Withdrawal or Termination 7.5 Listings 16.2

Co-Listings with Company Associate 7.6 Proprietary Information 16.3

Competition with Company Associate 7.7 Commissions 16.4

Change of Seller’s Associate 7.8 PRIVACY COMPLIANCE

Mere Posting Listings 7.9 Policy Statement 17.1

SHOWINGS AND PROSPECTS Privacy Compliance Manager 17.2

Showing Listings 8.1 Collection, Use and Disclosure of Personal Data 17.3

Prospect Loyalty 8.2 Disclosure of Information for New Purposes 17.4

Associate Vacations/Absenteeism 8.3 Protecting Information 17.5

Open House Prospects 8.4 Accuracy of and Access to Information Collected 17.6

PURCHASE AND SALE AGREEMENTS FINTRAC REPORTING

Disclosure of Agency Relationship 9.1 Client/Customer Identification 18.1

The Purchase Agreement 9.2 Suspicious Transactions 18.2

Trust Deposits 9.3 Terrorist Property 18.3

Interest Bearing Trust Deposits 9.4 WORKPLACE SAFETY

Signatures 9.5 Safety First 19.1

Offers on In-House Listings 9.6 INTERNET & WEB MARKETING

Offers on Other Brokerage’s Listings 9.7 Social Media 20.1

Presenting the Offer 9.8

Presenting Multiple Offers 9.9

Accepted Offers 9.10

Counter Offers 9.11

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GENERAL INFORMATION 1.1 DISCLAIMER Subject to Rule 51(1)(f) of the Real Estate Act, “a real estate broker must provide all industry members of the brokerage and other personnel with written policies and procedures by which they are expected to operate…” This manual is not intended to imply or create a contract of employment or independent contractor. The management of Sutton Group - Canwest (the “brokerage”) may amend terms of this manual at any time at its sole discretion, providing such changes are in writing to all associates and personnel. 1.2 STATEMENT OF GOALS Sutton Group - Canwest is in the service business and its reputation is based upon the knowledge, expertise, action and integrity of its brokers, associate brokers, associates and employees. It is a requirement of all personnel to act in accordance with the highest professional and ethical standards. 1.3 MISSION STATEMENT “To provide the best possible service and to be mindful of the needs and best interests of our clients and customers. It is only by placing them first that we all achieve true success. Integrity, ethics, professionalism and community are paramount to our success!” 1.4 EQUAL OPPORTUNITY This brokerage does not tolerate discrimination based on race, national or ethic origin, colour, religion, age, sex (including pregnancy and childbearing), sexual orientation, marital status, family status, physical or mental disability (including dependence on alcohol or drugs), pardoned criminal conviction or any other classification protected by law. Applicants for employment or affiliation with the brokerage are considered on the bases of demonstrated ability, experience, training, potential and character. Background checks are a routine part of the process. The brokerage requires that all associates and personnel provide equal opportunity in servicing all real estate transactions. They should keep informed on all matters regarding the requirements imposed by all equal opportunity laws and shall act in accordance with these laws. 1.5 SUBSTANCE ABUSE AND SMOKING POLICY The use, possession, distribution or sale of illegal drugs is strictly prohibited at all times. While under the influence of alcohol or drugs, company personnel may not use the brokerage offices and may not transact real estate business. An associate should also discourage the use of drugs or alcohol by any party during a transaction. Upon discovering that a party is under the influence of either drugs or alcohol, the associate should take appropriate action to terminate that day’s activity and suggest delaying the transacting of business to another time. Alcohol may be made available during brokerage activities under specific circumstances. In the event of a brokerage-sponsored activity at which alcoholic beverages may be served or allowed, you are expected to conduct yourself in such a manner that you do not represent a danger to yourself, to other employees, to the general public or to the brokerage's reputation.

Smoking areas as designated by city bylaws are to be adhered to by all personnel and their guests. All other areas are considered non-smoking areas. 1.6 SEXUAL HARASSMENT Definition “Sexual harassment” is any verbal or physical conduct of a harassing nature, requests for sexual acts or favours, unwelcome sexual advances, or any other conduct with the purpose or effect of which unreasonably interferes with an individual's work performance or creates a hostile, intimidating, or offensive work environment. Sexual harassment is illegal. Position Statement Racial, religious and ethnic harassment also is illegal. For this reason, personnel must not engage in any behaviour toward fellow employees or associates that could be viewed as harassment. Since harassment is a serious offence, the brokerage will deal with it in the strictest of terms, which may include the termination of those found to have engaged in such conduct.

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Procedures All instances of harassment must be brought to the attention of the manager, the broker or a lawyer. The complaint is not required to be in writing, but it is helpful to provide details about dates, times, places and witnesses to the harassment. All complaints will be investigated promptly by the brokerage. The identity of the employee making the complaint and the identity of the individual accused of engaging in harassment will be kept strictly confidential. Information regarding the charge of sexual harassment and the investigation of that charge will not be made known to anyone who is not directly involved either as a party, a witness, a member of the investigatory team or the broker. Witnesses interviewed will only be provided with information necessary to elicit from them their observations and other relevant information of incidents they witnessed. The brokerage will endeavour to prevent retaliation against you for filing a harassment claim. If your complaint of harassment is found to be without basis, appropriate measures may be taken against you. This should not discourage you from making a complaint if you believe you have been a victim of sexual, racial, religious or ethnic harassment.

ORGANIZATIONAL PROCEDURES 2.1 Licensing As per Rule 6(4) of the Real Estate Act, an individual must not trade in real estate until the individual has been issued a licence by the Real Estate Council of Alberta and registered with a licensed brokerage. The associate is responsible for all fees associated with renewing his/her own licence. 2.2 Membership in Organized Real Estate Sutton Group - Canwest is a member of the Calgary Real Estate Board, Alberta Real Estate Association and Canadian Real Estate Association. The associate is responsible for all fees with belonging to these organizations. 2.3 Independent Contractor/Employee Status Unless otherwise specified in writing, all licensed personnel are INDEPENDENT CONTRACTORS. The brokerage’s policy is to have a written Independent Contractor Agreement setting forth the terms and conditions of the relationship with the brokerage prior to the associate’s commencement of work.

ADMINISTRATIVE PROCEDURES 3.1 Confidentiality All records of this brokerage, as well as conversations between associates, brokers and parties to the transaction are considered to be confidential. No files shall be removed from the office without the consent of the Broker or Manager and no other information obtained while affiliated with the brokerage shall be used to the detriment of the Broker or Brokerage. All information disclosed to brokerage personnel during the course of their real estate activities shall remain confidential and not be divulged to any other persons without the expressed consent of the principal. 3.2 Ability to Bind Brokerage Other than the authority to sign listing agreements on behalf of the brokerage, no company personnel shall have the authority to obligate or bind the brokerage in any manner without the Broker’s prior, written consent.

3.3 Associates Being Paid to a Corporation In order for commissions to be paid to an associate’s corporation, the associate must provide evidence to the brokerage that the associate owns at least fifty (50%) percent of the shares issued by that corporation. The associate must provide immediate written notification of any changes to the shares owned by the associate. 3.4 Automobile Liability Insurance All licensed personnel are responsible for sufficient automobile insurance coverage. The brokerage recommends liability insurance coverage by each licensed personnel be taken in the minimum amount of $2,000,000. The brokerage shall not be responsible for accidents, traffic or parking tickets incurred by licensed personnel. 3.5 Errors and Omission Insurance In accordance with Rule 112 of the Real Estate Act, all licensed personnel, at their own expense, must carry Errors and Omission Insurance through the Real Estate Insurance Exchange (REIX). 3.6 Associate Expenses and Accounts The brokerage is not and shall not be liable for any expenses or obligations incurred by associates, unless authorized in writing by the broker or manager prior to the obligation being entered into.

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Responsibility for expenses incurred for each licensed associate is contained in the Independent Contractor Agreement. Associates will be billed by the brokerage every thirty days for expenses incurred by the associate. Payment of the associate account is due as specified on the invoice and the associate will be responsible for ensuring the account is current. 3.7 Office Hours Office hours of the brokerage are 9:00 AM to 5:00 PM Monday-Friday for salaried office personnel, with a one-hour lunch period any time between 11:00 AM and 2:00 PM.

CONDUCT OF ASSOCIATES 4.1 Dress Code Proper attire, so as to present the correct professional image, shall be worn at all times when conducting business or when at the office of the brokerage. Attire appropriate to the location or occasion shall be considered appropriate. 4.2 Automobile In the course of real estate transactions, the associate must use his/her own personal automobile. All operating, maintenance, repair and other related automobile expenses are the responsibility of the associate. 4.3 Sales Meetings Sales meetings are conducted on a weekly basis. The purpose of our sales meetings is to keep associates informed of all aspects of the real estate industry. The meetings may include training periods, round table discussion periods, question and answer sessions concerning policies, review of legislation, best practices tips, discussion on new listings and requirements for property made by prospective buyers. Mandatory attendance of sales meetings covering real estate law and licensing matters is not required, however it is considered a valuable tool for all associates. These meetings will be announced in advance to permit associates to make necessary adjustments in their scheduling. At the discretion of the Broker or Manager, meeting notes and office communiqués may be made available to all associates on a regular basis. Associates absent from meetings shall be solely responsible for keeping updated on all matters and information resulting from the sales meetings.

OFFICE DUTY/OPPORTUNITY 5.1 Purpose The primary purpose of Office Duty/Opportunity is to be available to handle real estate related inquiries and walk-ins leading to potential leads or referrals for the “associate-on-duty”. It is a requirement of the Real Estate Act that only licensed personnel may answer real estate inquiries from the public. 5.2 Rotation Any personnel desiring to volunteer for office duty shall notify the Manager. A duty roster will be prepared and published on a monthly basis. Associates who have volunteered and are scheduled are expected to make sure they attend to their duty time as scheduled or make arrangements for a replacement.

AGENCY REQUIREMENTS 6.1 Brokerage Agency Policy Prior to the seller’s signing of the Seller Brokerage Agreement or the buyer’s signing of the Buyer Brokerage Agreement, the Associate shall discuss the different types of agency relationships with the seller or the buyer, as the case may be, explaining the duties of seller’s agents, buyer’s agents, sub-agents, dual agency and facilitators. 6.2 Written Service Agreements Written service agreements are designed to clearly indicate you and your client’s roles and responsibilities. Rule 43(1) of the Real Estate Act recommends that written service agreements be used to establish client relationships and sets out the mandatory elements of a satisfactory written service agreement, which may be satisfied through a prescribed form (i.e. listing agreement or buyer brokerage contract). Clients who do not wish to enter into a written service agreement shall waive the agreement in writing. Should your client wish not to waive the agreement in writing, associates are required to document that the client has refused to enter into a written service agreement and declined to provide a written waiver.

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LISTINGS 7.1 Brokerage Commission Rates The commission rates or fees charged by Sutton Group - Canwest are based upon the cost and value of the services we provide our clients and customers. Our rates or fees are not determined by any agreement, understanding, recommendation or suggestion involving a competitor or any other person who is not a party to a listing agreement with our firm. The amount of compensation that this firm offers to co-operating offices is determined by the level of service to be performed by those offices in addition to the amount of compensation necessary to foster co-operation. The compensation offered to co-operating offices is not intended, and is not to be used, to encourage or compel any competing firm to raise or lower its commission rates or fees. Associates affiliated with this brokerage shall not discuss with any person affiliated with another real estate firm the commission rates or fees charged by this or any other real estate office within our marketing and sales area. Notwithstanding the foregoing, associates affiliated with this brokerage may negotiate the compensation to be paid to a co-operating brokerage on an individual transaction. Listing presentations shall focus exclusively on the level and quality of service provided by this office, the results we have achieved for customers and clients and the performance the client can expect in exchange for the fees we charge. Any associate who is requested to compare our services with those of a competing firm should do so by emphasizing the value of the services we provide, not by disparaging competitors. Whenever an associate is uncertain about a proper response to the concerns of an actual or potential client or customer, or whenever an associate has been present during an unauthorized discussion on commissions or fees, the associate should immediately advise the Manager of the situation. In the event the negotiated commission rate is amended, the adjustment must be authorized in writing by the brokerage and the client. For further reference on CREA’s “Pledge of Competition” and “Principles of Competition”, go to http://crea.ca. 7.2 Seller Brokerage Agreements The associate shall fully complete the Seller Brokerage or Listing Agreement and shall require that all owners registered on title be listed on the listing contract and all owners and their spouses sign the listing along with the associate. The associate shall review the contract in detail with the owners and acknowledge that a copy of the signed agreement has been issued to them. If owners refuse submission of the listing to MLS® or to the Internet, wishes to exclude specific other brokers from showing the property or requires specific buyers from the listing, the listing contract must so state. 7.3 Cooperation with Other Brokerages It is the policy of Sutton Group - Canwest to offer maximum exposure to its selling clients. Therefore, all listed properties shall be offered to all other brokerages on a cooperative basis, unless otherwise specified in writing by the owner. The associate shall establish compensation rates that are appropriate to the marketplace and will lead to cooperative working relationships with other brokerages.

7.4 Signage Clean and undamaged “For Sale” signs must be used for all listings. “For Sale” signs may not be placed on listed properties until the listing agreement has been turned into the brokerage. It is the associate’s responsibility to maintain signs in a clean and orderly manner while displayed. It is the seller’s agent’s responsibility to add their name/phone number riders and pending sale signs. It is essential that signs conform to the communities’ ordinances and bylaws. The associate will be solely responsible for any fines or sanctions due to sign ordinance violations. Arrows and directional signs must not be placed on public property. To use them on private property, the associate must first receive written permission from the property owner. In the event a customized sign must be erected and purchased, the associate must first have the sign’s layout and style approved by the Broker or Manager. If costs of special signage are to be shared by the associate and the brokerage, prior written consent of the Broker or Manager must be obtained.

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Associates are to abide by condominium and townhouse association bylaws in relation to the use of real estate signs and key boxes. When listing this type of property, review the sign policy. “For Sale” signs may only be placed on a property with a valid listing contract in place. “Offer Pending”, “Conditional Sale” or similar signs may be posted, with the seller’s permission, after acceptance of an offer but prior to the waiver or satisfaction of conditions. Only after all conditions of the offer have been waived or satisfied and after obtaining the permission of the seller, “Sold” signs may be posted. “Sold” signs may remain on a property up until closing. All signs must be removed from the listed property promptly upon closing or expiration of the listing, subject to local board rules and regulations. 7.5 Cancellation, Withdrawal or Termination of Seller Brokerage Agreement A cancellation or withdrawal, when approved by the Company management shall terminate a listing as of a certain date or in the case of a withdrawal, it shall be withdrawn from the MLS® but still be an active listing until cancelled or expired. Prospects who have been shown 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. A cancellation or withdrawal must have the approval of the Broker or Manager. The owner is to be notified in writing of our agreement to cancel the brokerage agreement. At your option, you may furnish the owner with a list of your prospects in writing prior to the cancellation. MLS® is to be notified of the cancellation in writing signed by the Broker or Manager. The seller’s agent releases all future rights to the property in that the property may be re-listed by any associate. The original seller’s agent can reinstate their rights by re-listing the property. 7.6 Co-Listings with Company Associate It is the responsibility of associates jointly listing a property to make their own arrangements, setting forth their working agreement in writing. The agreement will include commission structure, advertising and open house rights, sign calls, all prospects and listings obtained through the listed property. Upon execution of this agreement, it shall be turned into the brokerage and become part of the brokerage file. If there is not a written understanding among the associates, the brokerage will consider commissions and prospects on a pro rata basis (i.e. if a property is listed by 2 agents the listing commission is split 50/50). 7.7 Competition with Company Associate If in attempting to list a property, the owners state their intention to list with a fellow associate of our brokerage, it is recommended the owner’s decision be supported. Under these circumstances, it is not prudent continuing to pursue this listing. It is also suggested the named fellow associate be informed of the owner's intention to list with that associate.

7.8 Change of Seller’s Associate If a seller wishes to change seller agents, the Broker/Manager must be consulted and a new associate may be assigned to the listing. Listings may be cancelled or withdrawn only with the consent of the Broker/Manager. It may be in the brokerage’s best interest to try to change seller agents if the seller is dissatisfied with the original seller agent. The original seller agent, as long as they are still associated with the brokerage, may negotiate a referral fee with the new associate or broker depending upon the circumstances of the situation. Any such changes to the original seller brokerage agreement must be done in writing on the appropriate listing amendment forms. When a listing expires or is cancelled, the seller agent forfeits all rights to the listing. It is not prudent for any other associate within the brokerage to pursue this listing without the consent of the Broker or Manager. 7.9 Mere Posting Listings If an associate wishes to offer Mere Posting services to sellers, the associate must receive prior authorization from the Broker or Manager.

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SHOWINGS AND PROSPECTS 8.1 Showing Listings All showings are to be arranged by appointment or at the direction of the seller in accordance with the instructions on the listing. If showing a home and the buyer decides not to want inspect the interior, it is important to inform the owner immediately, in person or by note/business card or through the listing agent, the prospect has chosen not to inspect the home. Leave a business card at every showing. Be courteous to all property owners. Do not make any remarks or give opinions about price, conditions or the seller agent to the property owner. 8.2 Prospect Loyalty A buyer who currently has a property listed with the brokerage will be the seller agent’s prospect until their property is sold and closed or the listing expires, unless the buyer specifically requests to be released from the obligation to work with their seller’s agent on the buying side. 8.3 Associate Vacations/Absenteeism When associates will be unavailable for any period of time (i.e. out-of-town), the Manager must be informed and arrangements must be made with a fellow associate to take care of business of the unavailable associate. All such arrangements between agents as to the handling of buyers, seller and the resulting commission division, shall be in writing prior to the consummation of the transaction. The details of the written arrangement are entirely between the associates and must be disclosed to all clients involved. A copy of the arrangement may be given to the brokerage. Failure to arrange coverage by another associate will require the Manager to make the necessary arrangements and determine the appropriate commission split, if applicable. 8.4 Open House Prospects Any associate may show a prospect a brokerage open house without an appointment, accompanying the prospect through the home. If an offer is written by the showing associate resulting in sale with that prospect, the full commission payable to the buyer’s agent is credited to that showing Associate. Any associate may send a prospect unaccompanied through a brokerage open house and notify the open house associate in advance that the prospect will be coming to the open house. If an offer is written by either associate resulting in a sale with that prospect, the full commission payable to the buyer’s agent is credited to that buyer’s Associate.

PURCHASE AND SALE AGREEMENTS 9.1 Disclosure of Agency Relationship Prior to writing or presenting an offer to purchase a property, disclosure of the agency relationship must be made in writing. If the associate is in a Transaction Brokerage situation, the parties to the transaction must consent to have the associate act in that position prior to writing and presenting the offer for the parties.

9.2 Purchase Agreement The purchase agreement is the contract that sets forth the intent of both the buyers and the sellers. It establishes the basis upon which the listing and selling brokerages, mortgage companies and real estate lawyers process the transaction. All addendums and amendments to the purchase agreement must be signed by all parties to the transaction and attached to the original purchase agreement. The associate shall ensure all parties to the agreement review the entire contract and make every effort they understand the offer. The purchase agreement supersedes the listing agreement. Any fixture not included in the sale must be specified on the purchase agreement. All personal property included in the sale must be clearly defined in the purchase agreement. 9.3 Trust Deposits

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Although the deposit is not a legal requirement, the purpose of the deposit is to indicate the buyer’s good faith and commitment to the purchase. The greater the deposit, the stronger the buyer's commitment is to complete the transaction. Cash deposits are discouraged by the brokerage and associates must make an effort to secure the deposit by certified cheque, bank draft or money order. If cash is received for the deposit, associates must document the reasons for the cash deposit, issue the buyer a receipt for the cash and immediately remit the cash along with a copy of the documented reason and receipt to the brokerage. In any case of a cash deposit of $10,000 or more, the Associate must notify the Broker immediately. If in the event a deposit cheque is returned non-sufficient funds or other cause, the associate must notify the seller and all brokers of the transaction immediately of the returned cheque. All trust deposits received or to be received within fifteen (15) days of the scheduled closing date of the transaction must be noted on the purchase contract that such deposits must be in the form of certified cheque, bank draft or money order. Post-dated cheques and promissory notes will not be accepted without the written consent of the seller. Improper handling of deposits may be grounds for immediate dismissal of an associate. Improper handling could include failing to deposit trust money by the specified time or falsely representing that the trust money has been received. The Broker is mandated by legislation for reporting all instances of mishandling or misrepresentation of trust money by an associate to the Real Estate Council of Alberta (RECA). 9.4 Interest Bearing Trust Deposits All parties must agree in writing on the purchase agreement if interest on the trust deposit is to be paid to the buyer and/or seller otherwise all interest earned on trust money will be paid by the brokerage to the Alberta Real Estate Foundation in accordance with the Real Estate Act. 9.5 Signatures Signatures of all parties to the transaction must be included on all purchase agreements. Ensure that the party who can actually qualify for the mortgage is the party who has signed the contract. In instances where a third party is signing on behalf of another party, ensure you secure documentation confirming the party’s right to the transaction (i.e. Power of Attorney, Articles of Incorporation, etc.) and include this documentation in the brokerage file. All parties to the transaction must initial or sign all changes and corrections on the offer. Associates must never sign or initial on behalf of the buyer or seller, even when instructed to do so by either party. Fax signatures are allowable; however, associates must only witness signatures they actually see signed. 9.6 Offers on In-House Listings All offers on properties listed by our brokerage should be printed legibly and trust deposits be made payable to our brokerage real estate trust account, unless otherwise agreed in writing between the buyer and seller.

The seller’s agent should be contacted immediately for presentation to the seller. The buyer’s agent may request to be present when the offer is presented and such request shall be granted at the seller’s discretion. In the event the seller’s agent cannot be contacted within the time frame of the offer, contact the Manager for instructions on how to proceed with the offer presentation. 9.7 Offers on Other Brokerage’s Listings All offers should be printed legibly and trust deposits be made payable to the listing brokerage real estate trust account, unless otherwise agreed in writing between the buyer and seller. The seller’s agent/broker should be contacted immediately for presentation to the seller. The buyer’s agent may request to be present when the offer is presented and such request shall be at the seller’s discretion. In the event the seller’s agent cannot be contacted within the time frame of the offer, contact the broker or manager of both brokerages for instructions on how to proceed with the offer presentation.

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9.8 Presenting the Offer MLS® Rules and Regulations require all written offers to be presented immediately. Unless otherwise specified on the purchase agreement, the trust deposit (or proof of deposit) must accompany the offer. Any deposit monies received in trust as part of a real estate transaction must be deposited into the brokerage’s trust account within three banking days of the final acceptance date unless the parties to the transaction have agreed to another date in writing. RECA considers trust money to be received in a transaction when the offer has been written. Therefore, if it is the intention of the parties to have trust monies handed in on acceptance of the offer, or some other date, this should be noted in the contract and agreed upon by the parties. Verbal offers, counter-offers or acceptances are not enforceable in real estate transactions and if presented verbally, inform all parties that the offer is not binding until it is in writing and the possibility that other offers may be entertained or that either party may change its mind. Purchase agreements will not be valid until all parties to the transaction have signed and initialled any changes on the agreement and any addendums. 9.9 Presenting Multiple Offers Before multiple offers arise, the seller’s agent should inform the seller of the possibility that offers from more than one buyer may be received at any given time and inform the seller of the various options and the benefits and disadvantages of each. In the event there are offers from more than one buyer on the same property, the seller’s agent must inform the seller of the Multiple Offer situation and advise the seller of their options. All offers deserve equal consideration and must be presented even if there is another accepted offer in place. All offers should be presented in the order they were received and, subject to the direction of the Seller each of the buyer’s agents shall have the opportunity to present their own buyer’s offer. The seller’s agent should receive the seller’s authority to disclose to the buyer’s agents or buyers that there are multiple offers. Upon receiving this authorization from the seller, the seller’s agent will notify the buyer’s agents of the multiple offers situation and notify them how the offers will be presented. If the seller does not authorize the seller’s agent to disclose to buyer’s agents that there are multiple offers, the seller’s agent MUST have this direction in writing from the seller. If any of the offers are from buyers represented by the seller’s agent or brokerage resulting in a conflict of interest, the Broker or Manager must be contacted for direction on proceeding with the offer presentations. 9.10 Accepted Offers If an offer is accepted without change, ensure both parties have signed the agreement. The original purchase agreement, addendums and trust money is held by the listing brokerage, unless otherwise specified in writing. The seller, buyer and buyer’s agent each are to receive a copy of the purchase agreement as soon as possible. 9.11 Counter Offers If an offer is changed, it becomes a counter-offer. In this case, the seller should sign the agreement and sign or initial all changes of the counter-offer. The counter-offer becomes an accepted offer only when signed by both seller and buyer, all changes have been acknowledged by both seller and buyer and final copies have been delivered to both

seller and buyer or their agents. 9.12 Rejected Offers If an offer is neither accepted nor countered, it becomes rejected. When an offer is rejected, all forms and deposit cheques are to be returned to the buyer’s agent and copies to be remitted to our brokerage. If the Seller rejects an offer or counter-offer or the Buyer rejects a counter-offer, indicate on the offer or counter-offer that it has been rejected or refused, document the date and time the offer was rejected and have the party initial. 9.13 Cancellation or Termination of Purchase Agreements A purchase agreement will be legally cancelled or terminated by a written agreement between the buyer and seller or by a court order. Associates should have a cancellation or termination agreement signed in the event an agreement is to be declared “null and void”.

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A “Non-Waiver/Non-Satisfaction of Conditions” form is to be used when a purchase agreement is cancelled or terminated. Upon completion of this form, the Broker will disburse the trust deposit according to the agreed terms of trust. In all instances, trust deposits will not be refunded or disbursed until it has been verified that the deposit cheque has cleared or fifteen (15) calendar days from the date of deposit, whichever is first.

TRADE DOCUMENTS AND CLOSING PROCEDURES 10.1 Completion of Sales Information Allow enough time to close the transaction. Allow time for the conditions to be fulfilled, title to be cleared, trust deposits to be cleared and closing papers to be processed. If there are delays and the closing date must be amended, ensure to notify both parties of the change in writing and have both parties sign the change. 10.2 Trade Record Information Upon acceptance of an offer and as soon as practically possible, associates should provide the brokerage the name and address of the client’s lawyer for the purpose of conveying and completing the transaction. All original trade documents pertaining to the transaction will be remitted to the brokerage upon acceptance of the offer or as soon as practically possible. Commissions to the associate will not be released until all necessary trade documents are received by the brokerage. 10.3 Waivers and Amendments The buyer’s agent will notify the seller’s agent when conditions have been fulfilled and provide notice in writing signed by the buyer. In the event the buyer cannot fulfill the conditions requirements by the specified date in the purchase agreement and will require additional time, the buyer and seller may negotiate to extend the time period and agree to amend the purchase agreement in writing by using the prescribed form, “Amendment to the Purchase Contract”. 10.4 Final Inspections The associate will be aware of their closings. Attendance at final inspections is encouraged, subject to local board rules and regulations. In the event something is not in accordance with the purchase agreement, ensure the client is counselled of their options including the possibility of bringing it to the attention of the client’s lawyer. 10.5 Record Retention Documents should be retained no longer than reasonably necessary and will be destroyed when their useful life is over. Associates must maintain records for all transactions they perform including all trade documentation, call logs, showing logs, email correspondence and copies of advertising. This general rule is subject to requirements on record retention as stipulated by law or statute. For the purposes of the Income Tax Act, the general rule is that books and records must be retained for a minimum of six years from the end of the last taxation year to which they relate. For the purposes of FINTRAC, the general rule is that client/customer identification and receipt of funds records must be retained for a minimum of five years from the date of the transaction.

For the purposes of the Real Estate Act, the general rule is that trade documents must be retained for a minimum of three years from the date of the transaction. Exceptions to this rule include transaction files or documents relating to any pending or current investigation.

COMMISSIONS 11. Competition Act Associates must comply with The Competition Act, federal legislation that is designed to promote fair competition in the marketplace. The relevant provisions of the Competition Act may be simplified to three basic rules:

a) Don't collude. Make independent business decisions without discussion or consultation with competitors. b) Don't discriminate against or refuse to do business with competitors or other persons because of their pricing

policies. c) Don't mislead the public in your advertising.

By understanding and following these three simple rules in dealings with competitors, customers, clients, and real estate Boards and Associations, Brokers and associates can avoid issues that generate concerns involving compliance with the Competition Act. Further information regarding the Competition Act may be found on CREA’s website at http://crea.ca.

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11.2 Compensation/Remuneration Compensation for each associate is contained in the Independent Contractor Agreement. Associates shall not accept or receive compensation of any kind from any other source for, or in connection with their trade duties on behalf of the brokerage. 11.3 Commissions Payable Only licensed associates will be paid a commission. Any unlicensed assistants will not be paid a commission and can only be paid a salary. On all company listings, the associate(s) will be paid on the gross commission collected from the seller, less any adjustments. On sales of other brokerage’s listings, the associate’s commission will be calculated based on the gross commission received from the other brokerage. In the event there is more than one seller’s agent or one buyer’s agent, the commission on that part of the transaction will be divided as the associates have agreed in writing. In the absence of a written agreement, the commission will be on a 50/50 basis or otherwise determined by the broker or manager. In the case of a commission received by a personal cheque written by a seller or buyer, the commission will not be paid to the associate(s) until verification has been made that the cheque has cleared. In any case, commissions will not be paid without written confirmation from the lawyer or client that commissions are releasable. 11.4 Commission Disputes with the Public All commissions payable to associates are subject to negotiating to settle claims, disputes or litigation. The brokerage has sole discretion as to actions taken regarding claims, disputes or litigation with outside parties. If necessary, the brokerage’s lawyer will be used and the cost shall be borne by the brokerage and associate(s) in the associate’s commission percentage or rate prevailing at the time of the sale, whether or not such a commission is recovered. The brokerage will undertake to settle all matters with the public in a diligent and expedient manner. It is expected that the associate will exercise cooperation when dealing with these matters. 11.5 Commission Disputes within the Brokerage If two or more associates of the brokerage dispute a commission, it is recommended that the associates discuss the issue with each other first. If necessary, all parties to the issue should meet with the Broker or Manager to discuss the possible solutions in an attempt to resolve the dispute. Discussion among other staff or associates not involved in the dispute is inappropriate and will not be tolerated.

Management will resolve the dispute with a final decision rendered to all parties. It is recommended the public should not be involved in the dispute process between associates. If an agreeable solution cannot be reached, the associate may request arbitration/mediation through the Broker/Manager. Such process may be through a tribunal of three associates of the office, at the discretion of the Broker/Manager. If the associate takes separate action outside the brokerage, the associate may be responsible for any expenses incurred. 11.6 Commission Disputes with Other Brokerages In the event of commission disputes with other brokerages, the Broker/Manager must be notified immediately. In the case of a dispute that cannot be negotiated satisfactorily between the brokerages involved, the case may be submitted to the Arbitration Committee of the local real estate board. All disputes must have management approval prior to submission to the Board. Discussion among other staff or associates not involved in the dispute is inappropriate and will not be tolerated. If available, management reserves the right to mediation instead of the Arbitration Committee.

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11.7 Deductions from Commissions All Independent Contractors will be solely responsible for all registrations of and remittances of Income Tax, Goods and Services Tax (GST), Employment Insurance (EI) and Canada Pension Plan (CPP). All associates must provide their GST registration numbers to the brokerage and are responsible for notifying the broker of any changes thereof. Prior to paying its associates their commissions payable, the brokerage reserves the right to deduct any arrears or amounts owing by the associate to the brokerage from the commissions.

BUYING AND SELLING PERSONAL REAL ESTATE 12.1 Sale and Purchase of Property for Personal Account Any associate wishing to sell properties they own will list those properties with the brokerage. Associates purchasing any type of listed property will share with the brokerage at their commission scale any commissions earned on the purchase. Prior to buying or selling personal real estate, associates should check with the Broker/Manager regarding the commission structure for the brokerage’s own associates. If entitled to, and approved by the Broker/Manager prior to the transaction, each associate may be allowed one personal transaction for which no transaction fee will be charged to the associate by the brokerage under ALL of the following circumstances:

a) No commission is or will be earned by the associate on such transaction; b) The associate is or in the case of a purchase, will be on title for this property; c) Prior written approval is provided by the Broker/Manager; d) Only one such transaction will be allowed during each contracted (fiscal) year per associate;

An associate trading on their own behalf with a buyer or seller who is represented by another associate must disclose to the other associate, all of the following:

a) that the associate is authorized under the Real Estate Act; and b) that the associate is registered with Sutton Group - Canwest;

In the case of an associate selling their own property on MLS, it is advised to have the following statement in the Private Remarks section of the listing, “Seller is authorized under RECA’s Real Estate Act and a licensed associate (or associate broker, as the case may be) with Sutton Group - Canwest.” In the case of an associate buying a property listed on MLS by another associate, it is advised to include the following statement on the purchase agreement, “Buyer is authorized under RECA’s Real Estate Act and a licensed associate (or associate broker, as the case may be) with Sutton Group - Canwest.” An associate trading on their own behalf with a buyer or seller who is NOT represented by another associate must disclose, in writing, all of the following:

a) Any interest, direct or indirect, the associate has in the transaction; b) that the associate is authorized under the Real Estate Act;

c) that the associate is registered with Sutton Group - Canwest; d) complete details of any negotiations for a further trade of the real estate or the associate’s interest in it to

another person; and e) any information the associate knows that could materially affect the value of the real estate.

In any instance, an associate trading on their own behalf must ensure their agency relationship to the other party is fully understood by all parties. 12.2 Purchase of Real Estate Listed with the Brokerage for Personal Account Any associate or employee of the brokerage or any of their immediate family members who wishes to acquire an interest in a property that is listed for sale or managed by the brokerage must do all of the following:

a) disclose to the seller of a possible conflict of interest; b) disclose to the seller the name of the buyer and the nature of their relationship to the brokerage; c) disclose to the seller any confidential information of the seller that buyer may have already received; d) disclose to the seller who will be representing the buyer with respect to the transaction; and e) provide the seller with an opportunity to seek legal and independent advice.

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MARKETING 13.1 Guaranteed Sales This brokerage does not enter into any guaranteed sale agreements nor does the brokerage allow its associates to enter into any guaranteed sale agreements on behalf of the brokerage. 13.2 Incentives and Inducements An “incentive” is anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage. The Broker or Manager must approve all incentives and the brokerage does not allow its associates to communicate any incentives without the expressed written consent of the Broker or Manager. An “inducement” is anything that is offered or provided by an industry member to a person who is, or could be, a party to a real estate transaction and is intended to either assist, persuade, or cause that person to enter into a particular real estate transaction. An associate must not make an inducement without prior written approval of the Broker and clearly setting out the details of the inducement in writing and signed by both the agent and the party to the inducement. All incentives and inducements must be paid through the brokerage. 13.3 Broker-Approved Inducements Pursuant to the Real Estate Act Rules, Section 54(2) and unless otherwise directed by the Broker, this policy will constitute prior written approval for the following types of acceptable inducements:

a) real estate lawyer’s fees or disbursements not exceeding $1,000; b) Real Property Reports not exceeding $1,000; c) Moving expenses not exceeding $1,000; d) Home staging expenses not exceeding $1,000; e) Condominium documents production or examination not exceeding $500; f) home inspector fees not exceeding $500;

Details of the inducement must be provided in writing to the client and brokerage. All payments by the brokerage to the service provider will be made upon the associate providing all required documentation and reimbursement of the inducement to the brokerage.

RELOCATIONS AND REFERRALS 14.1 Relocation Policy The Broker or Manager coordinates all incoming and outgoing referral clients to insure the best possible service. The Broker or Manager will assign referrals to associates who meet the required criteria. Associates are to notify the Broker of ALL referrals received from ALL real estate broker firms and ALL other sources of referral calls. Inbound referrals may be matched as closely as possible to an associate by personality, service area, expertise in the applicable marketplace and schedule availability.

14.2 Referral Disclosure A “referral” means “the act of recommending or directing a person for service, assistance, or business to another person or business”. An associate may refer any person(s) to another brokerage or service provider provided the associate discloses in writing to that person(s) that the associate has forwarded the client’s name and contact information to another party and that the associate may be entitled to receive a referral fee, remuneration or benefit from the other party for making the referral. The associate must retain a copy of this disclosure and remit a copy to the brokerage. An associate who makes a referral to another industry member is responsible to ensure the industry member is in fact authorized to carry out the activities for which the referral is made. All referrals are to be paid through the brokerage and cannot be paid to anyone who is unlicensed if they are conducting licensed trade activities.

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14.3 Referral Agreement When a referral is sent to an associate from another brokerage or received by an associate from another brokerage, the associate must immediately clarify the referral agreement in writing. The associate must retain a copy of this agreement and remit a copy to the brokerage. 14.4 Referral Fees to Unlicensed Individuals A referral fee can be paid to unlicensed individuals as long as the services provided by the unlicensed person do not require a licence and the payment to the unlicensed individual is paid through the brokerage. A written referral acknowledgement may be required along with personal details of the unlicensed individual including name, address and social insurance number. All referral fees paid to unlicensed individuals may be issued a T4-A in accordance with the Canada Revenue Agency. 14.5 Payment of Referral Fees All payments for referrals shall be made payable to Sutton Group - Canwest and the associate shall be compensated on the basis of the commission schedule in the associate’s Independent Contractor Agreement.

PERSONAL ASSISTANTS 15.1 Licensed versus Unlicensed Personal assistants fall under two categories: licensed and unlicensed. The duties and responsibilities of the assistants are totally dependent upon whether the assistant is licensed or unlicensed. Do not assume that the assistant who holds a licence can automatically qualify as an independent contractor. Analyze whether or not the assistant should be classified as an independent contractor or an employee. For more information or to receive a ruling to determine whether or not the assistant is an independent contractor or an employee, contact Canada Revenue Agency. If it is determined that the assistant is an independent contractor, the assistant must sign an Independent Contractor Agreement. All associates wishing to hire an assistant must have prior written consent from the Manager to do so. An agreement between the associate and the assistant including the assistant’s job description and remuneration formula must be established and a copy remitted to and maintained in the brokerage’s file. 15.2 Typical Duties of Unlicensed Assistant

a) answer and forward telephone calls to authorized associates in the brokerage; b) submit listings and changes to the Multiple Listing Service (MLS®); c) follow-up on loan commitments after a contract has been negotiated; d) assemble documents for closing or incoming/outgoing tenants; e) secure documents (public information) from the courthouse, public utilities, etc.; f) have keys made for the licensed broker’s listings or rental/lease unit at the request of the broker; g) write ads for the approval of the licensed broker and place approved advertising (promotional,

information, newspaper ads) with the media; h) record and deposit trust money, security deposits and advance rents; i) type contract forms for the approval of the broker;

j) compute the amount of commission cheques to be paid; k) place signs on property on behalf of the broker; l) order items of routine repairs as requested by the broker; m) prepare flyers and promotional information for approval by the broker; n) act as a courier service to deliver documents and pick up keys; o) schedule appointments for the broker to show listed properties or rental units; p) retrieve information from the real estate board for the broker’s use only; q) update MLS® catalogues from the daily bulletin and information sheets; r) set up listing or tenant files, take photos of listings or rental properties, complete fact sheets for the

approval of the broker and deliver them to properties; s) open the broker’s listing or rental units for appraiser, inspectors, etc. (subject to the Residential Tenancies

Act); t) install lockboxes on the broker’s listings; u) “broker load” new listings onto the MLS® system as long as information is verified by the broker; v) distribute personal brochures or flyers with no public discussion on real estate matters; w) have a business card stating they are an unlicensed assistant to the brokerage; x) distribute information as approved by the broker on listed or rental properties to the public;

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y) inspect and measure homes if the measurements are verified by the broker; z) make cold calls to canvass interest in using the services of the real estate brokerage;

15.3 Duties That Cannot Be Performed by Unlicensed Assistants

a) place promotional materials or ads without the review and approval of the broker; b) show properties, either rentals or sales; c) preview homes or listings unless accompanied by the broker or associate, excluding open houses; d) answer any questions from the public concerning listings, titles, financing and closing; e) discuss or explain a contract, listing, property evaluation, lease agreement and/or other real estate

documents with the public; f) attend a listing or sales presentation unless accompanied by a broker or associate; g) negotiate Purchase Contracts, Listing Contracts, rental agreements or leases; h) be paid on the basis of any real estate activity, such as a percentage of commission or management fee, or

any amount on listings or sales; i) negotiate or agree to any commission, commission split, management fee or referral fee on behalf of the

broker; j) solicit listings and/or property management contracts from prospective clients; k) negotiate the amount of rent, security deposit or other lease provision in connection to rental properties, with

the exception of properties owned by the broker; l) hold publicly advertised open houses; m) represent themselves, at any time, as industry members or licensed brokers; n) place telephone calls on late rent payments with the exception of properties owned by the broker; o) have a keybox or any type of access key/code to a keybox;

15.4 Office Policy All office policies and procedures apply to personal assistants as they apply to licensed associates.

TERMINATION OF ASSOCIATE 16.1 Keys When terminating from the brokerage, all property assigned to the associate must be returned upon demand including but not limited to keys to the office, policy manuals, training materials, signs, supplies. 16.2 Listings All unsold listings remain the property of the brokerage. Listings will be released to the associate and their new brokerage only upon the seller instructing in writing that the listing be transferred to the new brokerage or as set out in the original Employment or Independent Contractor agreement. 16.3 Proprietary Information Upon termination with the brokerage or demand from the Broker, the associate shall immediately surrender and return all proprietary information in their possession or control. 16.4 Commissions All commission payouts shall be subject to provisions presently in place at the time of termination. Associates are entitled to receive commissions on transactions that are unconditional prior to the associate’s date of termination.

The brokerage reserves the right to assign another associate to perform necessary tasks to close transactions after the associate’s date of termination and compensate the assigned associate, if required, at a reasonable rate out of any commissions payable to the terminated associate. The brokerage reserves the right to withhold from commissions otherwise due and owing any commission advances or other money owed the brokerage by the associate. There will be no bonus commissions, trips, incentives, etc. paid to any associate once they are no longer licensed with the brokerage.

PRIVACY COMPLIANCE 17.1 Policy Statement The brokerage only collects personal information necessary to effectively market and sell the property of sellers, to locate, assess and qualify properties for buyers and to otherwise provide professional and competent real estate services to clients and customers.

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17.2 Privacy Compliance Officer The Manager is the responsible for privacy compliance in this office. The Manager’s name shall be made available to consumers for all privacy matters. The responsibilities of the privacy compliance officer shall include:

a) Establish and update information protection policies. b) Ensure policies are implemented by other organizations to which data-processing functions are outsourced. c) Establish criteria for classification of information. d) Evaluate the accessibility of sensitive information and take corrective action where necessary. e) Provide education to employees on the importance of information protection. f) Attempt to resolve consumer privacy complaints to the satisfaction of the consumer.

17.3 The Collection, Use and Disclosure of Personal Information Associates and representatives of this office will collect only the information necessary to facilitate the real estate transaction or otherwise provide professional and competent service to its clients and customers. Once the client has been told what will be done with the information, associates must be diligent to use the information only for those disclosed purposes. A common example of an unauthorized use of client information is the creation of a mailing list. This list is sometimes sold or given to third parties, who then send promotional information to the client. Alternatively, the associate may use the list to send ongoing promotional material to the clients. Associates using client names and contact information for any of these purposes must first obtain the client’s consent in writing. 17.4 Disclosure of Information for New Purposes Anyone using personal information for some new purpose that extends beyond the consent already provided, must obtain the express consent of the person for that use. Requests for information by law enforcement officials, lawyers, private investigators or other agents or subpoenas for documents issued by the court must be referred to the broker. 17.5 Protecting Information Information must be protected in a manner commensurate with its sensitivity, value and criticality. This policy applies regardless of the media on which information is stored, the locations where the information is stored, the systems used to process the information, or the processes by which information is handled. 17.6 Accuracy of and Access to Information Collected To ensure the quality of the information collected:

a) insofar as possible, personal information should be collected directly from the consumer; b) public property information (taxes, assessment data, ownership, etc.) should be verified with the public

source; c) disclaimers of accuracy should always be attached to any disclosure of information.

Individuals must be able to access their own personal information on request and be able to make any necessary changes for accuracy.

FINTRAC REPORTING

18.1 Client/Customer Identification Associates must complete all documentation as required by legislation or law to determine the identification of the Associate’s clients or customers and to determine the origin of funds received on the transaction. 18.2 Suspicious transactions Associates must report transactions to the Broker or Manager for the purpose of making a report to FINTRAC when there are reasonable grounds to suspect that the transactions are related to the commission of a money laundering offence or to the commission of a terrorist activity financing offence. Associates must report to the Broker or Manager for the purpose of making a report to FINTRAC any large cash transactions involving amounts received of $10,000 or more in cash. 18.3 Terrorist property Associates must report to the Broker or Manager for the purpose of making a report to FINTRAC if there are reasonable grounds the associate has a property in their possession or control that they know is owned or controlled by or on behalf of a terrorist or a terrorist group.

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WORKPLACE SAFETY 19.1 Safety first The very nature of real estate involves personal risk because associates often work alone in vacant buildings with people who are complete strangers. Associates assume the majority of these strangers will become clients and that they are really interested in the property being shown. Associates should bear in mind that predators look for easy targets. There are a number of basic things associates can do to protect their personal safety:

Keep a cell phone at all times. Program 911 on the cell phone’s speed dial.

Have a distress code. Have a pre-arranged distress signal: For example, "I'm at the Jones house and I need the red file right away." Share and practice the distress code with office staff, colleagues, family and friends. Use it any time there is a sense of uneasiness.

Make sure someone else knows. Associates should inform someone about who the meeting or appointment is with, the location of the meeting or appointment and the expected time the meeting or appointment will be over.

Don't glamorize promotional material. Avoid glamour shots. Marketing materials should be polished and professional. Limit the amount of personal information shared on marketing material. Avoid advertising home

phone numbers and addresses. Associates should advertise a cell number and an office address

Know who is being dealt with. When meeting new clients, associates should meet them at the office first. Verify their identities. Get their make/model of car and licence number and if you can, photocopy their driver's licence. Complete a Client Identification Form. A serious client will not hesitate to share this information.

Take precautions at Open Houses. Often at an Open House, associates will be working alone. Take basic precautions to ensure personal safety.

Use caution and judgment. Avoid unsafe and compromising situations.

INTERNET & WEB MARKETING 20.1 Social Media The following is the brokerage’s social media and social networking policy. The absence of, or lack of explicit reference to a specific site does not limit the extent of the application of this policy. Where no policy or guidelines exist, staff and associates should use their own professional judgment and take the most prudent action possible. Consult with your Broker/Manager if you are uncertain.

Personal blogs should have clear disclaimers that the views expressed by the author in the blog is the author’s alone and may not represent the views of the brokerage. Be clear and write in first person. Make your writing clear that you are speaking for yourself and not on behalf of the brokerage.

Information published on your blog(s) should comply with the company’s confidentiality and disclosure of proprietary data policies. This also applies to comments posted on other blogs, forums, and social networking sites.

Be respectful to the brokerage, its employees/associates, clients, customers, partners, and competitors.

Your online presence reflects the brokerage. Be aware that your actions, whether intended for personal or professional in nature, captured via images, posts, or comments can reflect that of your real estate business or our brokerage.

Do not reference or site brokerage associates, clients, partners, or customers without their express consent. In all cases, do not publish any information regarding a client during the engagement.

Respect copyright laws, and reference or cite sources appropriately. Plagiarism applies online as well.

Use of company logos and trademarks may be used according to franchise and brokerage rules.