Brokerage Relationships Policy 

INTRODUCTION 

Farmers National Company ("FNC") is engaged in the business of providing professional agricultural services, including real estate brokerage and property management services in several states. The purpose of this Brokerage Relationships Policy ("Policy") is to identify and describe the various relationships in which FNC and its affiliated licensees may engage with a seller, buyer, landlord, or tenant. Insofar as permitted by the law of the state where the real estate is located, FNC may offer and provide any or all of the brokerage relationships identified and described herein. 

This Brokerage Relationships Policy is intended to modify and replace all policies previously adopted by Farmers National Company, and shall remain in effect until modified or revoked in writing.

DEFINITIONS  

    As used in this Policy, the following terms shall have the meanings set forth below, unless a different meaning is required under the law of the state in which the real estate is located.  

A.               Common law agent shall mean an agent whose duties and obligations toward the principal are those described in the common law of the state in which the real estate is located. They shall include, but not be limited to the authority to bind the principal to the terms and conditions of a real estate or leasing transaction. The duties and obligations exceed those of a limited agent.  

B.               Limited agent shall mean an agent, other than a common law agent, whose duties and obligations toward the principal are those prescribed by the applicable statutes and regulations of the jurisdiction in which the real estate is located.  

C.               Seller's agent shall mean a limited agent engaged by and representing the seller in a real estate transaction. 

D.               Buyer's agent shall mean a limited agent engaged by and representing the buyer in a real estate transaction. 

E.               Landlord's agent shall mean a limited agent engaged by and representing the landlord in a leasing transaction. 

F.               Tenant's agent shall mean a limited agent engaged by and representing the tenant in a leasing transaction.  

G.               Dual agent shall mean a limited agent who, with the written informed consent of the parties to a contemplated real estate or leasing transaction, is engaged as a limited agent for both the seller and buyer, or both the landlord and tenant. 

H.               Single agent shall mean a limited agent who is engaged by and represents only one party in a real estate or leasing transaction.  

I.                 Subagent shall mean a broker, together with his or her affiliated licensees, engaged by another broker to act as a limited agent for a client. 

J.                Transaction brokerage shall mean the relationship wherein an affiliated licensee assists one or more parties with a real estate or leasing transaction. Customer assistance may include, but is not be limited to communication, advisement, negotiation, contract terms, and/or the closing of such real estate or leasing transaction. The individual providing the customer assistance does so without being an agent or advocate for the interests of any party to the transaction.  

K.               Designated brokerage shall mean the relationship created where, as authorized by law, a broker handling a real estate or leasing transaction may appoint an affiliated licensee to act as the limited agent of a seller, buyer, landlord, or tenant, to the exclusion of all other affiliated licensees.  

PROPERTY MANAGEMENT  

A.     FNC offers several property management services, including full farm and ranch management, tailored management, and several agricultural consultation services. 

B.      With respect to providing full farm and ranch management, it is our general policy to act as the common law agent of the landlord, and not the agent of the tenant. In such instances, we do not generally act in a dual agency, subagency, transaction brokerage, or designated brokerage relationship.  

C.     In states allowing dual agency, limited agency, designated agency, or transaction brokerage, and only in such states, FNC may offer and participate in such relationships, including the representation of tenants. FNC will do so only in those situations where it has been determined that the relationship with the tenant is consistent with the best interests of the landlord. FNC may enter into a relationship with the tenant of a management client (landlord) only when the following prerequisites have been met: 

1.      Representing the tenant is not adverse to the interests of the management client, and is not contrary to applicable law, regulation, or code of professional responsibility. 

2.      The management client has been clearly advised of all relevant circumstances, as required by applicable law or regulation, and has given informed consent. 

3.      The management client has been clearly advised of FNC's duties and obligations accompanying the relationship with the tenant. 

D.     Nothing contained herein shall preclude FNC from offering its real estate brokerage, tailored management, agricultural consultation, or other agricultural services to farm operators who are not tenants on farms or ranches under management with FNC. Subject to the provisions of applicable law and this Policy, such services may also be offered and provided to tenants on farms or ranches managed by FNC. 

E.      Any duly licensed Chief Operating Officer, Vice President, Area Vice President, or Farm Manager may execute a property management or agricultural consultation agreement on behalf of FNC.  

F.      With respect to properties under management by FNC, we will provide the management client with an appropriate addendum to the property management agreement, disclosing this Policy with respect to the property management transaction. 

G.     At the earliest practicable opportunity during or following the first substantial contact with a prospective tenant, FNC will provide the tenant with a disclosure statement, clearly advising the tenant as follows:  

1.      That FNC is acting as the agent of the landlord;  

2.      That, except as noted elsewhere herein, FNC will not be acting as an agent of the tenant; and 

3.      That any information given by the tenant to FNC may be disclosed to the landlord.  

H.     All lease agreements entered into by FNC on behalf of a management client, shall contain a disclosure statement directed to the tenant clearly advising the tenant as follows:  

1.      That FNC is acting as the agent  of the  landlord;  

2.      That, except as noted elsewhere herein, FNC will not be acting as an agent of the tenant; and 

3.      That information given by the tenant to FNC may be disclosed to the landlord.  

I.       In the event that any regulatory body in the state in which a managed property is located, requires brokerage disclosure information or brochures to be provided to landlords or tenants in property management transactions, such required information will be provided to landlords and/or tenants. This information will be provided at the earliest practicable opportunity during or following the first substantial contact with such landlord or tenant. 

REAL ESTATE BROKERAGE  

General Policy — Listed Properties 

    With respect to properties listed for sale with FNC, it is our general policy to act as the agent of the seller. It is not our general policy to also act as the agent of the buyer, nor in a dual agency, transaction brokerage, or designated brokerage relationship.  It is also our general policy not to offer or accept subagency to or from any other brokers. In states or jurisdictions allowing dual agency, limited agency, designated agency, transaction brokerage, or subagency, and only in such states or jurisdictions, FNC may participate in such relationships as set forth herein. 

Listing and Auction Agreements  

    Listing and auction agreements, and real estate sale contracts may be executed and entered into by any licensed real estate agent employed by or formally affiliated with FNC, so long as such agreements are in a form approved by and acceptable to FNC. 

Dual Agency, Subagency, Transaction Brokerage and Designated Brokerage  

    When it is deemed to be in the best interests of a seller whose property is listed for sale with FNC, FNC may also enter into a brokerage relationship with a prospective buyer. FNC may act in a dual agency, subagency, transaction brokerage or designated brokerage relationship, only when the following prerequisites have been met: 

A.     Acting in such a relationship is not adverse to the interests of the seller, and is not contrary to applicable law or regulation. 

B.      The seller has been fully informed of all relevant circumstances, as required by applicable law or regulation, and has given informed consent. 

C.     The seller has been clearly advised of FNC's duties and obligations accompanying the brokerage relationship. 

 Procedures  

Listing and Auction Agreements 

    With respect to all properties listed for sale with FNC, we will provide the client with a listing or auction agreement (including applicable addenda), disclosing to the client our Policy with respect to brokerage relationships. The listing or auction agreement shall be dated and executed by FNC and the seller, and retained on file. 

     Dual Agency, Subagency, Transaction Brokerage and Designated Brokerage - Seller Disclosure 

    At the earliest practicable opportunity after FNC has determined that it is in the best interests of a seller that it act in a dual agency, subagency, transaction brokerage or designated brokerage relationship with respect to the sale of the client's property, FNC shall secure the client's informed written consent to so act. FNC shall have the seller endorse the applicable portion of the listing or auction agreement or an addendum thereto. At that time, FNC shall disclose the following to the seller: 

A.     FNC's belief that acting in the brokerage relationship is not adverse to the interests of the seller, and is not contrary to applicable law, regulation, or code of professional responsibility. 

B.      FNC's knowledge of the circumstances relevant to acting in the brokerage relationship, insofar as they pertain to selling the property. 

C.     FNC's duties and obligations accompanying the brokerage relationship. 

     Disclosure to Buyer 

    At the earliest practicable opportunity during or following the first substantial contact with a prospective buyer, FNC will provide the buyer with a disclosure statement, clearly advising the buyer that FNC is acting as the agent of the seller, and that FNC is not and will not (except as provided for elsewhere herein) be acting as the agent of the buyer or in a dual agency, subagency, transaction brokerage, or designated brokerage relationship. The buyer shall also be advised that any information given by the buyer to FNC may be disclosed to the seller. The buyer will also be advised of the customer assistance services that FNC intends to offer to the prospective buyer. 

     Dual Agency, Subagency, Transaction Brokerage, and Designated Brokerage - Buyer Disclosure 

    At the earliest practicable opportunity after FNC has determined that it is in the best interests of a Seller that it act in a dual agency, subagency, transaction brokerage, or designated brokerage relationship with respect to the sale of the seller's property, FNC shall secure the buyer's informed written consent to so act, by having the buyer execute an appropriate brokerage agreement. At that time, FNC shall disclose the following to the buyer: 

A.     FNC's belief that acting in the brokerage relationship is not adverse to the interests of the seller or the buyer, and is not contrary to applicable law, regulation, or code of professional responsibility. 

B.      FNC's knowledge of the circumstances relevant to the brokerage relationship, insofar as they pertain to the sale and purchase of the listed property. 

C.     FNC's duties and obligations accompanying the brokerage relationship. 

     Real Estate Sale Contract Disclosure  

    All real estate sale contracts prepared by FNC shall contain disclosure statements required by applicable law and regulation, clearly advising the parties of the actual and potential brokerage relationships, if any, between FNC and each party to the transaction, as well as any relationships involving other brokers. 

Properties Not Listed With FNC  

    With respect to properties listed for sale with brokers other than FNC, it is our customary policy to act as the agent of the buyer, and not as the agent of the seller, nor in a dual agency, subagency, transaction brokerage or designated brokerage relationship. In states or jurisdictions allowing dual agency, limited agency, designated agency, transaction brokerage, or subagency, and only in such states or jurisdictions, FNC may participate in such relationships as set forth herein. 

Buyer Agency Agreements  

    With respect to properties listed for sale with brokers other than FNC, we will provide interested buyers with a buyer agency agreement, disclosing to the buyer our Policy with respect to brokerage relationships. The buyer agency agreement shall be dated and executed by FNC and the buyer, and retained on file. 

Dual Agency, Subagency, Transaction Brokerage, and Designated Brokerage Agreements  

    With respect to circumstances wherein the parties and FNC have decided to act in a dual agency, subagency, transaction brokerage, or designated brokerage relationship, FNC will disclose to the parties FNC's Policy with respect to such brokerage relationships. An appropriate agreement shall be dated and executed by FNC and the parties, and retained on file. 

Farmers National Company  

By: Lee Vermeer, Designated Broker 

Date: September 17, 2002