Keller Williams Realty San José - Gateway Team Meeting – August 23, 2011

2. Keller Williams Realty San José - Gateway Team Meeting – August 23, 2011 Guest Speakers *Roger Palmieri- Sales Performance Coach 408.910.1805 Roger@ThePalmieriGroup.com *Laura Larios- cell phone holders 408.705.9320 llarios@prudentialmail.com Announcements *Step 4: Make Being Learning Based the Foundation of Your Action Plan (click here to watch video) *Market Update *Broker Risk Management- Mike & MARS *Transaction Checklists *Listing-Recruits Competition *Lotto Tickets ALC Updates *Growth *Culture *Education Wrap-Up *Wants, Needs, Plugs Prospect Mortgage *Audrey & Rosalio

5. MARKET UPDATE

6. BROKER RISK MANAGEMENT • WEEKLY PRACTICE TIP • Who Gets the Referral Fee? • Q: I recently received a referral of a buyer from Sarah, an agent in a nearby town whom I have known for years. I signed a Referral Fee Agreement with Sarah for a 25% referral fee. We are about to close escrow and I received an e-mail from Sarah that she has just changed brokerages and that I should send the referral fee to the new brokerage because she has a higher commission split, and is in a dispute with her prior broker. I told her I didn’t know if I could do that, but she points out that only her name is on the referral agreement – not her former broker. She said we could just call it a “consulting fee” so no referral fee was paid. Who do I pay? • A. Basically, you pay the former broker. If Sarah has a salesperson’s license, all compensation must go through the broker, and thus that prior broker earned the right to receive the referral fee at the time the referral agreement was signed. California law requires that all compensation to licensees with a salesperson’s license must go through the broker. The salesperson has no right to receive that money or to direct that money to be paid elsewhere. • Even if Sarah has a broker’s license, she likely had an Independent Contractor Agreement with her prior broker requiring all transactions and compensation to go through that brokerage. So, you would have to contact the prior broker to see if they are going to claim the referral fee – which they likely are going to do. • For information on paying referral fees or any compensation to non-licensees or other “settlement service providers” see: • CAR Legal Memo entitled “Referral Fee Chart” at: • http://www.car.org/legal/referral-fee-folder/referral-fee-chart/ • Weekly Practice Tips entitled “Referral Fees” and “Referral Fees and RESPA” • PRACTICE TIPS: • 1. Always have a written referral agreement specifying payment to the brokerage, not the agent. See the CAR form Referral Fee Agreement (Form RFA on ZipForms) • 2. Know and understand to whom you can, and cannot, pay referral fees. • No matter what you call it, these rules apply. Calling compensation something other than a referral fee doesn’t change the rules.

9. New Listings CONGRATULATIONS!

10. Open Escrow CONGRATULATIONS!

11. Closed Escrow CONGRATULATIONS!

12. Lotto Tickets (6/29 to 8/23)

13. ALC Updates

14. Wants, Needs, Plugs