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:
·
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.
·
The
management client has been clearly advised of all relevant circumstances, as
required by applicable law or regulation, and has given informed consent.
·
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:
·
That
FNC is acting as the agent of the landlord;
·
That,
except as noted elsewhere herein, FNC will not be acting as an agent of the
tenant; and
·
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:
·
That
FNC is acting as the agent of the landlord;
·
That,
except as noted elsewhere herein, FNC will not be acting as an agent of the
tenant; and
·
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:
Randy Dickhut, Designated Broker
Date:
January 1, 2020
|