ARTICLE 1 - DEFINITIONS

Builder...the Builder or Builder’s representative.

Buyer-broker...the real estate firm retained to represent the Purchaser.

CABR...the Cincinnati Area Board of Realtors®.

Client...a principal in the transaction, who engages the professional service/advice of a REALTOR® and whose interests are protected by the specific duties and loyalties of a fiduciary relationship through an expressed agency agreement (written or oral).

Customer...a principal in the transaction, who receives support services without an expressed agency agreement (written or oral) with the REALTOR®.

Guidelines...the contents of this entire document, Cooperative Sales Guidelines.

HBA...the Home Builders Association of Greater Cincinnati.

MLS...the Multiple Listing Service of Greater Cincinnati.

Member...REALTOR® member of CABR and/or Builder member of HBA.

Property...any single-family residential property, including condominium or multi-family property.

Prospective Purchaser...a party, either client or customer, who is interested in buying real estate.

REALTOR®...the REALTOR® or his licensed agent.

REALTOR®/Builder Committee...the joint committee comprised of CABR and HBA members, as appointed separately by the governing bodies of each organization.

Rules for Arbitration ...Procedures established for handling commission disputes between signatories to the Guidelines.

ARTICLE 2 - PREAMBLE

Section 1. These Guidelines are established for the mutual benefit of members of CABR and HBA to promote the high standards of conduct in the transaction of real estate business so that membership in either of these organizations may serve as a guarantee of business integrity and responsibility.

ARTICLE 3 - GENERAL PROVISIONS

Section 1. These Guidelines shall be reviewed annually by CABR and HBA to determine if they are current and should continue in force the following calendar year.

Section 2. These guidelines shall be binding upon the members of CABR and HBA who subscribe to them in writing with their constituent organization, and shall remain in effect until revoked in writing and communicated, accordingly, to the respective organization.

Section 3. These guidelines are in the absence of any prior agreement between REALTOR® and Builder.

Section 4. The type of sales contract to be used between a REALTOR® and Builder is at the sole discretion of the Builder.

Section 5. In accordance with Ohio Agency Disclosure law, REALTOR® shall provide the Builder with a signed agency disclosure statement no later than contract presentation.

ARTICLE 4 - SHOWING AND REGISTRATION

Section 1. The registration procedure, as detailed herein, applies to Prospective Purchasers registered by either REALTOR® or Builder.

Section 2. The REALTOR® shall personally take his Prospective Purchaser to the Builder, Builder’s property, model or lot for the Prospective Purchaser’s first meeting or on-site inspection of the property, model or lot.

Section 3. The REALTOR® shall present to the Builder, within 24 hours of showing, a written notice (e.g., memo, Builder’s registration form, letter or business card) giving the name of Prospective Purchaser, date and time of showing.

ARTICLE 5 - ENTITLEMENT TO COMPENSATION

Section 1. Should the REALTOR® sell either the specific property shown by the REALTOR®, a lot owned by the Builder or a property to be built from the Builder’s models or plans or Prospective Purchaser’s plans, the assumption would be that the REALTOR® is due a commission provided the sale takes place within a reasonable period of time (see Section 2 of this Article). In the event the sale takes place beyond such reasonable period of time, the assumption would be that the REALTOR® is not due a commission.

Section 2. A reasonable period of time is construed to be thirty (30) days from the date of initial registration or extension thereof in the event of re-registration of a Prospective Purchaser’s name.

Section 3. A registration of a Prospective Purchaser will be extended for an additional thirty (30) days by written notice, e-mail, fax, or phone call from the REALTOR® to Builder, without the need of an additional property visit by REALTOR® or Prospective Purchaser. In the event the Prospective Purchaser has a continued interest in the Builder beyond sixty (60) days from the date of the initial registration, an additional property visit and registration (see Article 4, Section 3) or a written notice signed by the Prospective Purchaser and REALTOR® must be presented to the Builder.

Section 4. If a Prospective Purchaser returns to the Builder on his own and purchases from the Builder within the thirty (30) day registration period or extension thereof, the assumption would be that the REALTOR® is due a commission, in accordance with these Guidelines. In the event of such sale after the registration period or extension thereof, the assumption would be that the REALTOR® is not due a commission.

Section 5. If a Prospective Purchaser returns to the Builder with another REALTOR®, and should this REALTOR® submit an offer acceptable to the Builder, the Builder is not liable for a commission to the original REALTOR®. However, if there is a REALTOR®-to-REALTOR® dispute over the commission paid, it shall be handled in accordance with Article 7, Section 1 of these Guidelines.

ARTICLE 6 - BASIS FOR COMPUTING COMMISSION

Section 1. Neither CABR nor HBA have recommended rates of commission or recommended commission splits.

Section 2. At the time an appointment is set for showing the property, it is the joint obligation of the REALTOR® and Builder to establish the basis of subagency or buyer-broker compensation unless, however, the property is listed in the MLS, in which case a blanket unilateral offer of subagency and/or buyer-broker compensation already exists.

Section 3. Optional items in models should be designated as such, and the REALTOR® should ascertain which items are not included in the base selling price.

Section 4. The Builder should disclose to the REALTOR®, prior to the signing of the sales contract, whether the selling commission is computed on the (a) base price of the property or (b) base price plus optional items.

Section 5. In the acceptance of the sales contract, the Builder and REALTOR® shall sign an agreement indicating the amount of compensation due the REALTOR®.

ARTICLE 7 - HANDLING OF DISPUTES

Section 1. If a commission dispute arises out of a transaction between REALTORS® of different firms, either REALTOR® may submit the dispute to the Arbitration Committee of CABR for resolution.

Section 2. A commission dispute arising between Signatories to these Guidelines shall be referred to the REALTOR®/Builder Committee for conciliation or resolution in accordance with the Rules for Arbitration. An Arbitration hearing panel from within the REALTOR®/Builder Committee to hear unresolved REALTOR® -Builder disputes shall consist of three Builders and two REALTORS® in even-numbered years, and two Builders and three REALTORS® in odd-numbered years.

Section 3. Any Member of CABR or HBA who has subscribed to these Guidelines and refuses to comply with these Guidelines, or fails to comply with a finding of the REALTOR®/Builder arbitration hearing panel, shall be subject to disciplinary action by the Board of Directors of the CABR or HBA, as applicable. Such disciplinary action may include suspension or expulsion of membership as provided in the Constitution of such association.

ARTICLE 8 - AMENDMENTS

Section 1. These Guidelines may be amended if approved by the governing bodies of both CABR and HBA.