WIXLIB

** Associate’s portion of the Errors & Omissions Insurance is 50 for up toa single commission of 15,000 whether as a result of representing the buyer,seller or both in a single transaction. Associate-Licensee’s portion of the Errors &Omissions Insurance will increase over 15,000 by 25 for every 5,000, orportion of 5,000 of commissions earned.*** Associate acknowledges that Morris Williams Realty requires allcustomers and clients to pay the sum of 310 at closing to American Complianceand Transaction Processing Company. Associate agrees to pay this fee fromtheir portion of the commission in the event that the client or customer does notpay for any reason. This fee is only due and payable upon closing.(1) Dividing Compensation With Other Licensees. If two or moreassociates participate in rendering a brokerage service to the public, or claim tohave done so, Broker will determine, in Broker’s sole and absolute discretion, theamount of the fee due Associate.(2) Incentives. If a seller or listing office offers a premium, bonus or otherincentive, and such premium, incentive or bonus is in the form of money, theincentive or bonus will be split with Morris Williams Based on the Associatescommission plan, If such incentive is other than money (i.e., a cruise, trip, orother matter having economic value but not delivered in money), then suchpremium, bonus or incentive will go to Associate. If a nonmonetary incentivegoes to Associate, Broker will report the fair market value of the incentive asincome to Associate, as Broker must collect and deliver the incentive toAssociate to preserve the respective legal positions of the parties.(3) Benefits. Associate will be provided no minimum salary, vacation pay,sick leave or any other fringe benefit.(4) Collection of Fees. Broker will not be required to prosecute or sue anyparty in order to collect any fee for services performed by Associate. However, ifBroker incurs attorney’s fees and costs in the collection of or attempt to collect afee, such amounts will be deducted from Associate’s commission in the sameproportion as provided for herein in the division of the fee.(5) Any referral fees, lease/rent commissions or any other fees earned byAssociate of which Morris Williams Realty will receive less than 350 based onthe Associates commission plan will be split 80% to the Associate and 20% toMorris Williams Realty up to 350 to Morris Williams Realty. (ie: 200 rental fee 160 to Associate and 40 to MWR) An additional 40 will be deducted on saletransactions for E&O.(6) Any failure of Associate to pay an annual or monthly fee to MorrisWilliams Realty will result in 25% penalty per occurrence.6

(7) Compensation After Termination of Agreement. After termination ofthis Agreement, Broker will pay Associate any amount earned prior to terminationless amounts owed to Broker and amounts Broker must pay another licensee tocomplete pending transactions for which Associate was responsible prior totermination.(8) Partners and Teams with other MWR Associates1. The transaction must be in the name of a single Associate.2. All “team” members must be on the same commission plan.3. If Associate-Licensee and one or more other Associate-Licenseesaffiliated with Broker participate on the same side (either listing orselling) of a transaction, the commission allocated to theircombined activities shall be divided by Broker and paid to themaccording to their written agreement. Broker shall have the right towithhold total compensation if there is a dispute between associatelicensees, or if there is no written agreement, or if no writtenagreement has been provided to Broker.TERMINATION OF ASSOCIATESIf this Agreement is terminated for any reason while Associate-Licensee has listings orpending transactions that require further work normally rendered by AssociateLicensee, Broker shall make arrangements with another associate-licensee to performthe required work, or Broker shall perform the work him/herself. The terminatedAssociate’s compensation shall be reduced to 50% of total commission so that thelicensee performing the unfinished work shall be reasonably compensated forcompleting work on those listings or pending transactions.All listings, buyer’s Broker and other agreements, remain the sole property of MorrisWilliams Realty. The terminated individual shall take no action which may jeopardize orimpair Morris Williams Realty's rights to them.SALES AND ADMINISTRATIVE MEETINGSSales, administrative and educational meetings are held on a specially scheduled basisby Morris Williams Realty. No regular meetings are required. Attendance at anymeeting is voluntary except to the extent required by Texas license law for the purposesset forth by the TREC.7

ADVERTISINGAll advertising must comply with Morris Williams Realty's policies as well as Texas lawgoverning policies and procedures governing advertising of the licensees ownedproperties.Advertisements must be in such a manner that a responsible person would know thathe or she is dealing with a real estate licensee or real estate brokerage. The Texas RealEstate Commission has indicated in the past that this requirement is satisfied when oneof the following criteria is included in the advertisement.The words “realty” or “real estate” form a part of the brokerage company nameThe advertisement includes the Real Estate Licensee’s designation as a “REALTOR” or“REALTOR Associate”The brokerage company name is synonymous with real estateAdvertisements must not be fraudulent, false, misleading or deceptiveCONTRACTSNo contract or contract form shall be used by any Morris Williams Realty Associatesthat is not a Standard Texas contract form unless otherwise approved in writing byMorris Williams Realty BEFORE the contact is completed and signed. All contracts andlistings must be submitted to Morris Williams Realty within 72 hours of signature.LISTING POLICYMorris Williams Realty listing policy shall be in compliance with Texas law andregulations. All listings and related documents will be immediately forwarded to MorrisWilliams Realty upon execution of a signature by the owner / seller. All listings are theproperty of Morris Williams Realty however, may be transferred to another broker if theAssociates Independent Contactor Agreement with Morris Williams Realty states assuch.All inquiries about an Associates listing will be referred directly to that listing Associatewith the exception that Morris Williams Realty reserves the right to advertise anycompany listing at Morris Williams Realty’s expense and distribute any resultingprospective customers to any Associate for a referral fee.RENTAL LISTINGS1. All deposits and future rent payments from the tenant are to be made out to andsent directly to the owner / landlord or their property management company bythe tenant.8

2. Funds may NEVER be made out to you personally, Morris Williams Realty or incash.3. All commissions are to be paid to Morris Williams Realty by the owner / landlordor their property management company.4. The exact amount or percentage to be paid to a cooperating broker for a leasereferral must be clearly entered into the MLS.5. All cooperating broker referral fees are to be paid by Morris Williams RealtyONLY.6. All pertinent disclosures must be presented to the tenant such as pre 1978structures lead based paint disclosure.7. A copy of the signed lease agreement must be uploaded to Morris WilliamsRealty.8. Any lease agreement that you prepare must be a TREC or TAR lease form.9. You may only fill in the blanks on the form and may not add clauses, additionalterms or addendums.RENTAL REFERRAL FEES1. All deposits and future rent payments from the tenant are to be made out to andsent directly to the property management company or listing broker by the tenant.2. Funds may NEVER be made out to you personally, Morris Williams Realty or incash.Tenant Screening FeesTenant screening should be done through a service like https://mysmartmove.com/where the tenant pays the service directly, and the agent receives the results of thetenant screening.CompensationCommissions will be paid to Morris Williams Realty as noted on the Rental ListingAgreement. The Agent should upload the Rental Listing Agreement and a copy of theResidential Lease Agreement to Morris Williams Realty and request an invoice to thelandlord using the Commission Disbursement Request form. Morris Williams will theninvoice the landlord for the commissions.YARD SIGNSYard signs, their installation and removal are the responsibility and at the expense ofthe Associate and must be installed in compliance with local laws and association rules.Any violations of law or rules resulting in a fine or penalty will be the completeresponsibility of the Associate.All yard signs must be purchased through and approved by Morris Williams Realty.“Home made” or “hand written” signs are prohibited. While Associates are encouraged9

to purchase their own yard signs with their own telephone number, Morris WilliamsRealty will provide company owned yard signs with the main Morris Williams Realty’stelephone number for a refundable deposit of 50 which will be returned to theAssociate after the yard sign is returned to Morris Williams Realty in re-usable condition.However, the company yard sign will be considered as a Morris Williams Realty’sadvertising expense and Morris Williams Realty reserves the right to distribute anyresulting telephone inquiries from prospective customers to any Associate for a referralfee.HANDLING OFFERS AND COUNTEROFFERSAll Associates shall promptly deliver all written offers and counteroffers to the offeree inaccordance with Texas law and sound business practice.The licensee shall deliver to the Seller and Morris Williams Realty a signed copy of theoffer to purchase immediately after it has been signed by the Buyer. A licensee shallpromptly tender all written offers to purchase to the seller and Morris Williams Realtyupon receipt. Upon obtaining a proper acceptance of the offer to purchase, signed bythe seller, the licensee shall promptly deliver true executed copies of the exceptions tothe purchaser, seller and Morris Williams Realty. A licensee shall make certain that allterms and conditions of the real estate transaction are included in the offer to purchase.DEPOSITSAll deposits received by the Sales Associate must be made payable to a licensed titlecompany or escrow company and shall be deposited by the end of the next businessday. A legible copy of the receipt for the deposit must be immediately provided to MorrisWilliams Realty in accordance with Texas state law. All Morris Williams RealtyAssociates must familiarize himself/herself with this rule of law to ensure that depositsare timely made.ASSOCIATE ABSENCE OR UNAVAILABILITYIn the event that an Associate will be absent or unavailable to conduct business on theirlisting or pending transactions the Associate must employ another Morris WilliamsRealty Associate to do so on their behalf. The associate must notify Morris WilliamsRealty Management in writing of any assignment prior to being absent.In the event that an Associate is absent or unavailable to conduct business on theirlisting or pending transactions, and has not notified Morris Williams Realty Managementof a written assignment of the Associates responsibilities, Morris Williams Realtyreserves the right to assign the listing or pending transaction to another Morris WilliamsRealty Associate until the primary Associate become present and available. In this caseMorris Williams Realty will collect 25% to 50% of the commission plus 310 at closingdepending on the length of absence.10

PROHIBITED TRANSACTIONSNo Morris Williams Realty Associate shall engage in a timeshare, mobile home withoutland, or property management transaction or service.PERSONAL TRANSACTIONSPersonal real estate purchases: You may not represent yourself as both a buyer and real estate licensee ofMorris Williams Realty in a puchase transaction. A MWR real estate licenseemust represent you seperately in the transaction. All contracts, addendums, disclosures and other transaction documents must bemade out in the name of and signed by either a licensee designated by an officeror an officer of Morris Williams Corporation. You must disclose in writing that you have an interest in the property beingpurchased and that you are licensed under Morris Williams Corporation. You may receive your commission in the form of a referral fee only, but whetheryou choose to receive a commission, no commission or a commission credit tothe transaction Morris Williams will receive at closing its standard commissionbased on your commission plan, E&O premium and American Compliance’sprocessing fee. Your commission must be disclosed to the seller. A small, reasonable added work fee may be charged on a case by case basis.Personal real estate listings: You may represent yourself as a seller, Listing Associate and a real estatelicensee of Morris Williams Realty. You must disclose in writing that you have an interest in the property being soldand that you are licensed under Morris Williams Corporation. You must sign and provide all usual, required listing and purchasedocumentation to Morris Williams Realty. You must provide the buyer and be signed by the buyer a Seller’s Disclosure. You must put in place a home warranty at closing paid by you or the buyer. The purchase contract must have a buyer inspection clause or written waiver bythe buyer. Whether you choose to receive a commission, no commission or a commissioncredit to the transaction Morris Williams will receive at closing its standardcommission based on 3% of the purchase price, your commission plan, E&Opremium and American Compliance’s processing fee.ACQUIRING INTERESTS IN LISTED PROPERTIES11

It is the policy of Morris Williams Realty, in compliance with Texas law to disclose thelicense status of the buyer before the offer to purchase is presented to the seller.Written evidence of this disclosure shall be signed by the seller and maintained in thefiled with the transaction. No licensed Associates of Morris Williams Realty shallreceive any portion of the commission without written permission of the seller of specificcompensation being paid to the licensee.COOPERATION WITH OTHER BROKERSMorris Williams Realty will cooperate with other Brokers at whatever percentage ofcommission has been agreed to by the seller and posted in the Multiple Listing Service.Any modification of the cooperating compensation must be in writing and agreed to bythe Seller, cooperating broker and Morris Williams Realty Associate.REFERRAL POLICYAll referral, cooperation, co-participation or compensation agreements betweenindividuals within Morris Williams Realty shall be in writing and approved by MorrisWilliams Realty. Work on transactions or referrals which are not handled within MorrisWilliams Realty or are otherwise outside the expertise of its Associates shall be referredelsewhere on a compensation basis approved by Morris Williams Realty.ARBITRATION OF DISPUTESBy accepting a position with Morris Williams Realty, all Sales Associates and BrokerAssociates agree that disputes between them are to be settled by arbitration withinMorris Williams Realty in accordance with the provisions herein and agree to be boundby such arbitrating result. Any arbitration award may be enforced by the prevailing partyin a court of competent jurisdiction.If Sales Associates and Broker Associates have a dispute which they are unable tosettle, either party may submit their grievance in writing to the principal Broker of MorrisWilliams Realty.The Broker shall then select two Sales Associates or Broker Associates who were notinvolved in a dispute as arbitrators to act with them in resolving the dispute.The three arbitrators will sit as an arbitration panel to hear and decide the dispute inaccordance with the arbitration rules established by the American ArbitrationAssociation.The results of arbitration shall be binding upon the parties and may be enforced in anycourt of competent jurisdiction.DISPUTES WITH OUTSIDE PARTIES12

The decision to initiate, settle, or compromise any dispute, arbitration or litigation withan outside party lies solely with Morris Williams Realty.If it becomes necessary for Morris Williams Realty to sue for a commission, allexpenses, including attorney's fees, shall be borne by the Sales Associate or BrokerAssociate.If Morris Williams Realty is sued as a result of activities or conduct of the SalesAssociate or Broker Associate, Broker maintains Errors & Omission insurance whichcoverage includes all Associates up to 1,000,000 per year. Associate agrees to pay adeductible of 2,500. In the event that Morris Williams Realty the Sales Associate orBroker Associate, is found liable the Sales Associate or Broker Associate shallreimburse Morris Williams Realty for its entire cost beyond the insurance limits,including attorney's fees.RESPONSIBILITY FOR REPORTING CASH PAYMENTS OVER 10,000Morris Williams Realty is required to report all cash payments over 10,000 to the IRSForm 8300 in accordance with applicable IRS regulations. All Morris Williams RealtyAssociates must familiarize themselves with the current IRS regulation and report toMorris Williams Realty any cash payments over 10,000 in any transaction in whichthey participate.AUTOMOBILE INSURANCEMorris Williams Realty Associates who drive on Morris Williams Realty business mustmaintain automobile liability coverage for personal injury and property damage in theminimum amount of 300,000. A current, valid certificate of insurance must be providedto Morris Williams Realty with Morris Williams Realty added as an additional insured.FEES AND DUESAssociate fees and dues are the sole responsibility of Morris Williams Realty Associatesand include but are not necessarily limited to, the following: Association Realtor dues,multiple listing fees and fines, computer access charges, Chamber of Commerce dues,monthly or annual fees to Morris Williams Realty, transaction fees to Morris WilliamsRealty, E & O Insurance fees, and all fees for use of Morris Williams Realty suppliedoffice equipment, supplies, services and conference rooms.RECOMMENDATIONS TO PARTIES FOR OTHER PROFESSIONAL ADVICE ANDOTHER OUTSIDE SERVICES13

All Associates understand and agree that Morris Williams Realty is not an inspectionfirm, attorney, construction engineer, accountant, tax consultant, financial planner, andshall, when such needs arise, suggest outside services. Associates shall recommendthat inspection firms and other professional service providers should be utilized.Associates receiving compensation in connection wi

Morris Williams Realty's Associates and employees, whether a licensed real associate or not, shall comply with these minimum standards. Morris Williams Realty and all Associates must conduct themselves in a manner, which meets these standards. Morris Williams Realty encourages anyone to act in a manner which exceeds these minimum