OPERATING PROCEDURES

Transcription

1 OPERATING PROCEDURES Cartus Broker Network Business Requirements...1 Operating Procedures...3 Referral Fees...5 Performance Coding Definitions and Guidelines Tracking Level Explanations...7 Status Possibilities...7 Conversion Rate Impact...9 Corporate/Government Business...9 Affinity Business...10 Broker Network Business...11 Media Policy Standards for Cartus Broker Network Members...14 Media Policy... Exhibit A Golden Rules of Business Conduct... Exhibit B SECTION XIV Copyright 2008 by Cartus Corporation. All rights reserved.

2 Cartus Broker Network Business Requirements Principal Brokers Corporate, Government and Affinity Business Cartus is committed to the strength and success of our Principal Brokers. We recognize that the quality, loyalty, professionalism and performance excellence of all of our Network Brokers is a critical component of client satisfaction and of the sustained success of our Company and yours. To this end, the following Business Requirements have been developed to help ensure a stronger and consistent working relationship between Cartus and our Principal Brokers. BUSINESS REQUIREMENTS The relationship between Cartus and the Principal Broker is performance based. To remain in good standing with Cartus, the Broker s performance results must meet or exceed Cartus expectations in all areas of the relationship, including outgoing referral closings. All Principal Brokers must establish an effective business relationship with PHH Mortgage. All transactions must be managed through the broker s relocation department. Cartus shall provide reporting, as appropriate, to Principal Brokers. Brokers will be required to develop action plans for those areas where performance results are not meeting established goals. Cartus Mortgage and all Preferred Alliance partners must be introduced on all Cartus referred business, unless otherwise directed by the corporate client. Ongoing training, education and certification are key elements in continued elevation of service levels. Therefore, Broker attendance and participation at Cartus Broker Network sponsored training programs is required. An A Team of agents will be assigned for Cartus business, specially selected for handling our transactions (see Section VI for selection guidelines and responsibilities). A periodic review of the team members will be completed by the Broker. Agent training and certification should occur no less than once per year. Broker is responsible for insuring that all agents handling our business are fully trained and certified in all Cartus processes and requirements. Cartus strongly supports initiatives to increase the utilization of Diversity Suppliers -- Minority and Woman Owned Businesses (MWOB). Assistance from the Network to meet Cartus goals is vital. Network members are expected to: Utilize Diversity Suppliers for Cartus inventory listings, i.e., landscaping, painting, maintenance, etc. 1

3 Certify, train and include minority agents on A teams Supply names of local minority-owned real estate firms and become a mentor to them for relocation business Cartus expectation is that each Network Member will direct 20% of Cartus Inventory business opportunities to a minority agent or a Diversity Supplier Network member will track and submit a Diversity Supplier report to Cartus on a monthly basis. Golden Rules of Proper Business conduct (Exhibit A) will be exercised by all Cartus employees in working with Network Brokers. It is expected that all Network Brokers will conduct business with Cartus employees in a professional manner, with respect and courtesy. Cartus is opposed to the practice of collecting after-the-fact referral fees. For clients listed on our First Contact List included as an Exhibit in all Principal Strategic Alliance Agreements and postal on Broker Center, Cartus will collect a referral fee up to the point that a purchase or sale agreement is executed, according to client policy. Refer to the Referral Fees section of this document for additional clarification. At no time are Network Brokers or agents permitted to discuss referral fees directly with the employee or member on Cartus business. Such discussion is a source of great dissatisfaction amongst our clients and within Cartus. The Broker will ensure that these conversations do not take place. Brokers are to utilize Broker Center to manage all Cartus Corporate, Government, Affinity and broker-to-broker business. Broker Services must be informed and involved on all significant issues concerning the Broker Network and problems arising in the handling of any Cartus business, and documented within Broker Center notes. Brokers may not charge Cartus, our clients or customers for administrative, service or ancillary fees. Brokers may not advertise or use the corporate name or marks of any Cartus client and may not disclose specific information about a client or customer to other parties. Principal Brokers may use the corporate name or Marks of Cartus only as permitted in the Strategic Alliance Agreement. Cartus commitment is to place all business within the Broker Network unless directed otherwise by our clients. Please be aware that many client programs give the employee the choice of listing agent prior to accepting the Cartus offer to purchase the home. If a sale occurs during this time, Cartus closes the transaction with the employee s listing agent. While we strongly encourage the employee to list with a Network Broker, we cannot interfere if the employee chooses otherwise. This should not be construed as our placement of business outside the network, but rather a requirement within client policy. 2

4 Operating Procedures DEPARTURE/INVENTORY REFERRALS: BMA/Home Marketing Process One BMA to be ordered through a Network Broker if a listing opportunity exists If listed, and in Home Marketing process, BMA to be ordered through employee s or member s listing broker Should second BMA be required by client policy, ordered through a Network Broker If the property is not listed, two Network Brokers will be contacted in order to make a listing presentation to the employee. The order for the BMA or listing presentation will be faxed to the broker or placed through Broker Center by the Cartus Real Estate Services Department or the appropriate Affinity Services team. The broker must return faxed confirmation of the referral to the referring source or accept the referral through Broker Center. BMA for Value When a BMA is ordered from the Network Broker it will clearly be identified as a BMA for Value evaluation with Need Only inspection policy (refer to Principal Broker Handbook for explanation of this program). Only ONE evaluation is to be ordered under the BMA for Value program unless Client directed Timeline for delivery of value to Cartus 3 days from order date A fee will be paid to brokers for BMA for Value evaluation, except in states that do not permit payment of fee. In these states, Network Brokers will perform the BMA for Value evaluation, but will not be paid the fee: Michigan Mississippi Nebraska New Mexico Pennsylvania Nevada West Virginia Delaware In Kentucky, only an agent/broker with an appraisal license may perform the BMA for Value evaluation Cartus will check with the relocation department to ensure that such a broker exists within the firm to do the work. If not, the order must be placed with an appraiser. 3

5 Listings If transferee had listed property with Principal Broker, Principal Broker to retain listing through Relocation Department when the property comes into inventory, unless there has been a performance issue or client directs us to list with another broker. If transferee had listed property with Associate Broker, Associate to retain listing through Relocation Department when property comes into inventory for a reasonable period of time, unless: Service excellence has not been demonstrated Transferee listing time has passed probable marketing time Client direction dictates otherwise Principal Broker contract dictates otherwise Non-network (non-contracted) brokers cannot retain listing when a network broker exists in the marketplace unless client directed, but may register a buyer in the event of a pending offer Listing will be placed with Broker by the Client Inventory Specialist. Broker must follow all instructions in returning confirmations of the listing terms to Cartus. All listings must be identified as corporate owned in the MLS, unless directed otherwise. MLS fees cannot be charged back on any Cartus business. Initial listing period will typically be 90 days Cartus will not dictate commission splits unless part of a mutually agreed upon selling strategy. Client-directed commission splits must be identified at the time the listing is placed. At the end of the 90 day listing, if the Principal Broker is using best efforts (as defined by the Client Inventory Specialist), to market and manage the property, extending the listing is appropriate. These decisions will be made on a case-by-case basis, however. If the decision is made to move the listing, the listing should be first placed with a Principal broker and then with an Associate broker. Consideration will be given to either broker if they are an approved Minority or Women Owned Business. Reimbursement Instructions of Monthly and Final Bills for inventory properties are located in Broker Center Forms Library for your review and compliance. Your compliance with these instructions is necessary for reimbursement to occur. 4

6 Home Finding Teleconsulting/Registration Home Finding referrals should be given to only one Network Broker for a specified destination area, unless client or customer directed. Homefinding referrals will always be placed with a Principal Broker, if one exists in the marketplace unless client directed or customer requested. Home Finding referrals are placed with the Network Broker through Broker Center. Confirmation of the receipt must occur within 24 hours in Broker Center. In the case of a signed Buyer Agency agreement, under no circumstances will a commission be paid unless authorized by the corporate client and the appropriate operational Vice President within Cartus. Always get this confirmation in writing from Cartus. Do not rely on the information provided by the employee or member, in order to prevent any miscommunication. REFERRAL FEES Referral Fee: 35% -Destination -Home Marketing Listing and Sale -Inventory Listing and Sale -Affinity Business Referral Fee: 25% Broker to Broker Referrals Referral fee collection subject to guidelines noted in the following grid: First Contact Client Cartus requires that the Broker pay the referral fee when placement of the business occurs up to the point that the customer signs a purchase or sale agreement regardless of whether or not already listed with an agent within the company Non-First Contact Client Cartus requires that the Broker pay a referral fee when placement of the business occurs up to the point that the customer signs the listing or buyer agency agreement (First Contact Clients are identified in the Communications section of Broker Center and are updated quarterly) 5

7 ADDITIONAL GUIDELINES All Principal Brokers are contractually required to send ALL OUTGOING BROKER TO BROKER REFERRALS through the Cartus Broker Network utilizing Broker Center. Broker-to-broker referral fees of 25% will be split with 12.5% going to the sending broker and 12.5% going to Cartus, without exception. Broker to Broker referrals that later convert to corporate or affinity referrals will result in an increase in referral fee from 25% to 35%. (Referring broker to receive 12.5%; Cartus to receive 22.5%.) The conversion of a broker-to-broker referral to a corporate or affinity referral can occur up to the point of an executed contract for sale or purchase. If the broker chooses, they may elect to receive credit for the closing in lieu of the 12.5% referral fee. In this case, the referral fee of 12.5% must be sent to Cartus. Cartus does not restrict Network Brokers from receiving referrals from any source, provided they do not become a member of a competing Broker Network to receive those leads. Cartus is aware that some network Brokers are associated with outside Affinity groups and will, from time to time, place these referrals with Cartus Network Brokers. It is your decision whether or not to accept these referrals. These referrals will not be credited to the referring broker s outgoing broker-to-broker referral closing goal, or affect your inbound results. Be assured that these firms must still send all broker-to-broker referrals through the Cartus Broker Network at a 25% referral fee, split equally with Cartus. For Affinity business, should a referral result in additional transactions, a referral fee will be due to Cartus on all downstream business. Exhibit A: Golden Rules of Proper Business Conduct 6

8 Performance Coding - Definitions and Guidelines TRACKING LEVEL EXPLANATION All referrals are tracked in a single database. Brokers interact with this database through Broker Center. Cartus staff interacts with the same database through HEM (Home Event Management). They are two interfaces or routes to the same data. Performance tracking which involves our Brokers is done at two levels on every file: Service The customer Service level tracks what is happening with the customer for each authorized service (HF/LST/INV) and Cartus performance to our corporate clients. Placement The broker Placement level tracks each broker ever associated with that customer and that broker s individual performance STATUS POSSIBILITIES AT EACH LEVEL At the customer Service level, a customer s service can be: Registered customer is ready to be officially referred; file has been set up in HEM; may be telecounseled first depending on client. Registered Referred Info Only customer is placed with a broker(s) but as Info Only type (does not apply to Corporate or Affinity referrals) Placed Service is qualified and officially placed with a broker Pending Sale property/home has gone under contract and has an estimated closing date Final Sale property/home has closed on the service, but Cartus has not received the referral fee yet Complete Cartus has received the referral fee and journalized the financial transaction to the file Dropped Cartus was not able to close the customer on the service; counts against Cartus conversion rate with our corporate/affinity clients. 7

9 Cancelled lead did not meet guidelines for qualified placement. Cancelled does not count against Cartus conversion rate with our corporate/affinity clients. At the broker Placement level, a broker working with the customer on a service can be: Referred Info Only customer is referred to broker(s) but lead is not solid definition varies by business segment and is defined for each later. Placed (Unconfirmed) broker has officially received the referral lead. (Should only stay in this status for 1 business day for Affinity/Corporate referrals and 2 business days for Network referrals.) Placed (Confirmed) broker has officially acknowledged the receipt of referral, payment of a referral fee is paid on referred business as part of the strategic alliance agreement Sale customer has gone under contract and then closes (broker s conversion rate is positively impacted at point of contract) broker has lost the customer and the close out will have a negative impact on their conversion rate broker has lost the customer and the close out will not have a negative impact on their conversion rate. Reason Codes are available when closing a service that is lost to further track the reason the customer relationship has ended or processing of a sale fall through. Appropriate reason codes have been provided by each business segment. Please select the most appropriate reason from the list provided. (If you feel there is additional consideration, please provide an explanation in the comment box). Based upon the close out code selected, each business has its own rules on impact to conversion rate. The three primary Cartus business segments are: Corporate/Government (Corp), Affinity (AFF) and Broker Network (NETW). In addition, each business segment has its own rules on which reason codes will require approval. Typically the approval process is required on Corporate, Government and Affinity Business if the close out code submitted will bring the referral to a terminal status (customer is lost). A final word about conversion rates: Keep in mind that Cartus does not set the target conversion rate to be 100% for either outgoing or incoming conversion in any business segment. The reason targets are not set at 100% is we all realize there are those times where it is not possible to convert a referral which may not be wholly the placed broker s fault and the code is used! A target of less than100% takes into account these situations. 8

10 Conversion Rate Impact INFORMATION ONLY Corporate policy does not allow the use of Info Only status. CORPORATE/GOVERNMENT BUSINESS GUIDELINES Close Out Code Bought Direct Builder Base Housing Decided to Rent Changed Destination Did not Qualify for Mortgage Legal Issue - No Opportunity Listing Not Renewed Opted Other Broker Bought/Sold FSBO Move Cancelled/Postponed Opted Other Broker Rejected Referral Not Selling Service Issue CONVERSION IMPACT The following closeout codes are available to the Cartus staff. Please indicate in the comment box if you are trying to use one of these reasons. Close Out Code Duplicate file Selection Error/Placement Correction Used Competing Program CONVERSION IMPACT 9

11 AFFINITY GUIDELINES INFORMATION ONLY Close out on an Info Only does not count against your conversion rate. The following are the guidelines for defining Info Only: Several destination areas of interest Price range is $75,000 or under for home finding Should you have a specific question on a status code, [email protected] Close out Code Base Housing BetterIncentive/Reduced Commission Bought Direct Builder Bought/Sold FSBO Cannot Reach/ No Response Changed Destination CorpRelo/No Opportunity Decided to Rent Did not Qualify for Mortgage Does not Service Area Failed Inspection Legal Issue No Opportunity Listing not Renewed Market Conditions Move Cancelled/Postponed Opted Other Broker Opted Other Broker-Network Prior Relationship w/selected Broker Used Competing Program Conversion Impact The following closeout codes are available to the Cartus staff. Please indicate in the comment box if you are trying to use one of these reasons. Close out Code Selection /Error Placement Duplicate File Conversion Impact 10

12 BROKER NETWORK BUSINESS/BROKER TO BROKER REFERRAL CREATION POLICY All Customers should be created in Broker Center with all available information keyed into the file. Files should not be called across first and then entered in Broker Center. Documenting placement of a referral will ensure credit/referral fee payment and is in compliance with your strategic alliance agreement. Proper use of the close out function will determine conversion rate impact. INFORMATION ONLY Info Only status is an option for Network placements. While a file is tagged as Info Only, it does not count toward your outgoing referral goal. Guidelines to be used for Broker to Broker (B2B) Info Only placements: Customer does not have definitive move timeframe; motivations not clear. Move date is more than 6 months away Several destination areas of interest which necessitates placement with multiple brokers covering different areas. Please do not create duplicate files. Customer intends to FSBO and just wants market analysis (but chance of turning it into a listing) Customer wants general information but not ready to actually work with a realtor, but could after receiving the info Questionable prior contact issues are they already listed, signed any documents with regard to buyer/agency, etc. Broker Services will not change a file to Info Only. Regional Directors will be reviewing number of Info Only placements. Guideline is no more than 10% of outbound referrals should be info only type. NOTE: Info Only is a courtesy through Broker Center. Only files being placed with network brokers can be tagged Info Only and placed through Broker Center. Broker Services does not send out confirmation letters. If you are placing a referral with a non Network Broker it will be your responsibility to send out a confirmation letter. 11

13 Close Out Code Already committed other broker Base Housing Bought Direct Builder Bought/Sold FSBO Cannot Reach/No Response Decided to Rent Changed Destination Does not Service Area Legal Issue No Opportunity Listing not renewed Move Cancelled/Postponed Opted Other Broker Prior Relationship Conversion Impact The following closeout codes are available to the Cartus staff. Please indicate in the comment box if you are trying to use one of these reasons. Duplicate File HRB No Opportunity Selection Error/Placement Correction HRB- d Service Issue 12

14 Media Policy Standards for Cartus Broker Network Members Brokers are reminded of the critical importance of following established protocol and procedures that guide all interactions between Cartus, its business units, the media (print, broadcast, Web-based) and others seeking company information. Please review the following procedures and understand that they must be adhered to: Any quotations attributed to Realogy or Cartus personnel, or personnel of any Realogy affiliate, as well as any information concerning Realogy, Cartus, or their respective businesses or clients, must be submitted to Cartus for review and approval prior to use with external sources. External sources include, but are not limited to, trade publications, media (both local and non-local), and suppliers. Many Cartus clients have confidentiality agreements that prohibit the disclosure of their name, the fact of their relationship, and/or logo. Accordingly, do not use in any materials or release in any way the name, logo, or any information about a Cartus client without consulting the list of authorized contacts (see last page of this document). No logo or trademark of Realogy, Cartus, or any other Realogy company or affiliate may be used without our prior written consent. Your firm s Web site may only include the Cartus Broker Network logo (principal brokers). It should not include Cartus logo or any former names such as Coldwell Banker Relocation Services, PHH, Homequity, etc. The Cartus and Realogy name and/or trademarks may not be used for direct mail or agent recruitment. No reference may be made to the business practices, policies, or procedures of other Realogy-related real estate franchise systems, including ERA, CENTURY 21, Sotheby s, Better Homes and Gardens, or Coldwell Banker in your press releases, advertisements, recruiting pieces, or other promotional materials. (Members who are franchisees of these brands are bound by the terms and conditions of their franchising agreements on the use of their brand names.) The following are policy standards for preparing and distributing press releases and advertisements promoting your relationship as a Principal Network broker and your relationship with Cartus. Press Releases/Press Contact 1. A standard press release was provided as part of your initial signed contract package to be used when notifying the trade and local media about your signing as a Network Broker. 2. This press release and any other press release supplied to you by Cartus contains approved language, and must be used as is. 3. Any press release supplied to you by Cartus may be distributed to local media (daily and periodic local newspapers and trade publications) but requires permission from Cartus before being issued to any national media or put on a wire service such as PR Newswire, AP, or Reuters, or being displayed on any Web site, Internet connection, or . Permission extends to the distribution channel as well as day of issuance. 4. Where editing is essential, including customization of the personalized quotes from firm principal, prior approval from Cartus must be obtained, using the list of authorized contacts on the last page of this document. 13

15 5. When media questions refer to your relationship with Cartus or specifics on any Realogy company or a client, please refer them to one of the authorized contacts on the last page of this document. 6. Press releases should be used for media information purposes only. Advertising (Web-based and print) When developing advertising related to your designation as a Principal Network Broker and your relationship with Cartus, please adhere to the following general guidelines: When describing the Cartus Broker Network and/or your appointment as a Principal Network Broker for your area, you are contractually prohibited from using the following descriptions: Best of the Best Exclusive Broker THE principal broker Guaranteed Business Biggest and the Best You are not permitted to discuss or disclose the dollar value or transactional value of your contract with Cartus. You cannot make any non-attributed claims of market share or largest. You cannot list the names of any of Cartus clients. Please note that quotes from Cartus or Realogy personnel may not be used or inserted into the advertisement without our prior review and approval. This includes previously published quotes. Before giving any statistic related to Cartus or the Cartus Broker Network, you must check Broker Center for the most updated public statistics. When describing Realogy or Cartus, you must use the wording in the approved boilerplate for those companies as included here and posted on the Broker Center. EXAMPLES OF WHAT NOT TO USE: (The examples below reflect uses of non-attributed market share claims for Cartus, improper description of the Principal broker relationship, or incorrect statistics.) Did you know that Cartus is the largest relocation management company in the world? Cartus has over 52% market share of corporate relocating business. Realogy has a larger corporate client list than all of the other relocation management companies combined. XXX Brokerage is proud to be affiliated with the Cartus Broker Network, the nation s largest relocation broker network with over 450 premier real estate companies worldwide. The Principal Broker for Cartus, the premier provider of global relocation for businesses & workforce development solutions. Cartus, our largest relocation resource, represents 67% of the national relocation business, with over 253,000 annual transfers. Cartus is the world s largest provider of residential relocation services. Cartus manages employee relocations for more than 1,400 clients. 14

16 However, you may use the following words and phrases. You may wish to add these phrases to your tri-fold flyers, PowerPoint presentations, listings, and ads. Top-performing Leading Brokers We are a principal broker Cartus Broker Network is the nation s leading network of more than 425 Principal and 600 Associate brokers in market-dominant real estate companies that serve the clients and customers of Cartus. Cartus is the premier provider of global mobility management and workforce development solutions serving the corporate, government, and affinity markets. According to the May 2007 issue of HRO Today magazine, Cartus manages more than twice as many moves as its nearest competitor. We are part of the Cartus Broker Network which is the nation s leading network of more than 425 Principal and 600 Associate brokers in market-dominant real estate companies that serve the clients and customers of Cartus. Cartus boilerplate (description): This description changes on a frequent basis. Please refer to Broker Center for the most current version. You may use statistics in the boilerplate for use on your Web site or in print advertising, however, please make sure this information is kept current. Below is the boilerplate effective January 1, 2008: Cartus is the premier provider of global employee relocation and workforce development solutions serving the corporate, government and affinity markets. Through its industry-leading mobility management outsourcing, consulting, and intercultural and language training, Cartus helps the mobile workforces of organizations of all sizes achieve success worldwide. With more than 50 years of experience, Cartus helps clients achieve cost reductions and enhance service performance to accomplish their organizational objectives. Cartus has been recognized globally for its premier service including the 2007 Relocation Provider of the Year by the Human Resources Outsourcing Association and named to the Global Outsourcing 100 List of Best Outsourcing Providers by the International Association of Outsourcing Professionals. Cartus is part of Realogy Corporation, a global provider of real estate and relocation services. Visit and for more information. About the Cartus Broker Network: Cartus Broker Network is the nation s leading network of more than 425 Principal and 600 Associate brokers in market-dominant real estate companies that serve the clients and customers of Cartus. 15

17 Authorized Contacts When obtaining approval for editing changes and final copy, or for notifying Cartus about major news inquiries, please utilize the following contacts: Primary: Ed Moore Marketing Manager Cartus 40 Apple Ridge Rd. Danbury, CT E: Tel: Alternates: Alison Sedney Director, Communications Molly O Byrne Communications Specialist Mark Panus Senior Vice President, Corporate Communications Cartus 40 Apple Ridge Rd. Danbury, CT E: [email protected] Tel: Cartus 40 Apple Ridge Rd. Danbury, CT E: Molly.o [email protected] Tel: 203/205/1892 Realogy 1 Campus Drive Parsippany, NJ E: [email protected] Tel: You can obtain authorized broker flyers/media guidelines from Broker Center. Updated May