CENTURY 21 S.G.R., Inc. Company Policy Manual 2015 Edition

CENTURY 21 S.G.R., Inc.

Company Policy Manual

2015 Edition

20-May-15 TABLE OF CONTENT

CHAPTER ONE: GENERAL BUSINESS PRINCIPLES 1 MISSION STATEMENT 2 STATEMENT OF BUSINESS PRINCIPLES 2 THE SEVEN CHARACTERISTICS OF A PROFESSIONAL 2

CHAPTER TWO: EMPLOYMENT AND BUSINESS PRACTICES 5 EQUAL EMPLOYMENT OPPORTUNITY POLICY 6 POLICY AGAINST SEXUAL HARASSMENT 6 FAIR HOUSING POLICY 7 ANTITRUST POLICY 8 FORMS & SAMPLES 10  UNIFORM RENTAL PRACTICES GUIDE  RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK FORM  RENTAL APPLICATION REQUIREMENT FORM

CHAPTER THREE: ADMINISTRATIVE GUIDELINES 11 PURCHASING GUIDELINES 12 BUSINESS CARDS, BADGES, NAME PLATES 12 MULTIPLE LISTING IN-PUT FEES 12 POSTAGE COSTS 13 BROKER EXPENSES 13 AGENT EXPENSES 14 OFFICE HOURS 14 OFFICE OPENING AND CLOSING PROCEDURES 14 HOLIDAYS AND HOLIDAY HOURS 15 VACATIONS 15 FAMILIARIZATION WITH THE OFFICE 15 SMOKING POLICY 15 SUBPOENAS AND SUMMONSES 15 INQUIRIES/VISITS BY GOVERNMENT OFFICIALS 16 AGENT SAFETY 16 MONTHLY COMPANY MEETINGS 17 FORMS & SAMPLES 18  ERROR & OMISSION INSURANCE INVOICE 2015  APPOINTMENT OF TEMPORARY ADDITIONAL DESIGNATED AGENT(S) FORM

CHAPTER FOUR: PERSONAL ASSISTANTS 19 USE OF PERSONAL ASSISTANTS 20 FUNCTIONS OF UNLICENSED OFFICE PERSONNEL 21 PAYMENTS TO UNLICENSED PERSONS 22

CHAPTER FIVE: INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT 23 INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT 24 FORMS & SAMPLES 26  INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT SAMPLE  PERFORMANCE-BASED COMMISSION AGREEMENT SAMPLE

CHAPTER SIX: BROKERAGE RELATIONSHIP POLICIES 27 AGENCY DISCLOSURE POLICY 28 STRONGLY RECOMMENDED BUYER AGENCY EVENTS 29 AGENCY AND CONFIDENTIALITY 29 FORMS & SAMPLES 31  DISCLOSURE AND CONSENT TO DUAL AGENCY FORM  CONFIRMATION OF CONSENT TO DUAL AGENCY FORM  NOTICE OF NO AGENCY RELATIONSHIP FORM

CHAPTER SEVEN: LISTING PROCEDURES 32 LISTING PROCEDURES 33 LISTING PHOTOGRAPHY 33 MINIMAL MARKETING REQUIREMENTS FOR A LISTING 34 OPTIONAL MARKETING FEATURES 34 TYPES OF LISTINGS 34 COMMISSION POLICIES 35 OTHER LISTING TERMS 35 DISCLOSURE OF ADVERSE MATERIAL FACTS 35 RESIDENTIAL REAL PROPERTY DISCLOSURE FORMS 36 LEAD BASED PAINT 37 RADON AWARENESS ACT 37 ACCURACY OF LISTING INFORMATION 37 SIGNATURES 39 SELLER NET PROCEEDS CALCULATIONS 41 LOCK BOX PROCEDURES 41 OPEN HOUSE PROCEDURES 41 INTERNAL VERIFICATION PROCEDURES 42 SELLER SERVICE PLEDGE 42 BUYER SERVICE PLEDGE 42 FORMS & SAMPLES 43  LISTING, PENDING, AFTER CLOSING, CANCELATION, FAILED CHECKLIST  LEASE LISTING, LEASE CONTRACTS, AFTER RENTED CHECKLIST  RENTAL SELECTION CRITERIA  RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK FORM  RENTAL APPLICATION REQUIREMENT FORM  CENTURY21 SGR MARKETING PACKAGE  CENTURY21 SGR SELLERS NET SHEET FORM  MRED SELLERS NET SHEET FORM  LISTING PRESENTATION/ SELLING BROCHURE DOWNLOAD FROM “CENTURY21SGR” WEBSITE, UNDER “AGENT TOOLBOX”OR COPY FOLLOWING URL ON BROWSER WWW.CENTURY21SGR.COM/AGENTS/ABOUT-SGR/AGENT-TOOLBOX/  EXCLUSIVE LISTING AGREEMENT PLEASE MAKE CERTAIN TO USE THE “V.13.10”VERSION REVISED LISTING CONTRACT ONLY. IT CONTAINS THE COMPANY’S POLICY WITH RESPECT TO CANCELLATIONS AND A HOST OF OTHER ISSUES. DO NOT USE ANY OTHER LISTING CONTRACT.  EXCLUSIVE LEASE LISTING AGREEMENT

CHAPTER EIGHT: BUYER QUALIFICATION POLICY 44 BUYER QUALIFICATION POLICY 45 LOAN QUALIFICATION 45 ESTIMATED CLOSING COSTS 45

CHAPTER NINE: SALE CONTRACT POLICY 47 SALE CONTRACT COMPLETION 48 SALE CONTRACT TERMS 48 SALE CONTRACT NEGOTIATION 51 SHORT SALE CONTRACT PROCEDURES FOR LISTINGS 54 DISCLOSURE OF CONTEMPORANEOUS OFFERS 54 FORMS & SAMPLES 55  DISCLOSURE OF CONTEMPORANEOUS OFFERS SAMPLE

CHAPTER TEN: RISK REDUCTION 56 RISK REDUCTION PROCEDURES 57 COMPLIANCE WITH ALL LAWS, RULES AND REGULATIONS 57 COMPLIANCE WITH THIS POLICY MANUAL 57 PHYSICAL CONDITION OF THE PROPERTY 57 PSYCHOLOGICAL "STIGMAS" ON THE PROPERTY 57 DOCUMENTATION OF DISCLOSURE 58 USE OF EXPERTS & RECOMMENDATIONS 59 TRAINING 59 USE OF LEGAL COUNSEL 59 ERRORS AND OMISSIONS INSURANCE 60 ARBITRATION COSTS 60 COMPLAINT HANDLING PROCEDURES 60

CHAPTER ELEVEN: PENDING CONTRACTS 62 PENDING PROCEDURES 63 LATE EARNEST MONEY 63 FINES FOR NON-COMPLIANCE 64 FORMS & SAMPLES 66  CONTRACT PEDING INFORMATION SAMPLE  ESCROW ACCOUNT ENVELOP SAMPLE CHAPTER TWELVE: CLOSINGS 67 CLOSING PROCEDURES 68 DRY CLOSINGS 68 NOTIFICATION OF A CLOSING 69 COOPERATION AND COMPENSATION POLICY 69 DISCOUNT AGENT POLICY WHEN SELLING PERSONAL RESIDENT OR INVESTMENT PROPERTY 69 COMMISSION POLICIES 70 COMMISSION CHECK DISBURSEMENT 70

CHAPTER THIRTEEN: REFERRAL POLICIES 71 GENERAL REFERRAL POLICIES 72 OUTBOUND REFERRALS: 72 INBOUND REFERRALS 72 INTRA-OFFICE REFERRALS: 73 FLOOR TIME LEAD REFFERALS 73 LEADROUTER REFERRALS 74 FORMS & SAMPLES 76  LEAD CONTACT/APPOINTMENT FORM  IMPLEMENTATION OF LEADROUTER SYSTEM FORM

CHAPTER FOURTEEN: RECORD RETENTION & DESTRUCTION 77 SCOPE 78 PURPOSE 78 DEFINITIONS 79 ADMINISTRATION 79 RETENTION REQUIREMENTS 79 POLICY REVIEW 80 REPORTING 80 RECORD RETENTION SCHEDULE/ TRANSACTIONAL RECORDS 81 CORRESPONDENCE AND INTERNAL MEMORANDA 81 ELECTRONIC DOCUMENTS 82

CHAPTER FIFTEEN: DISPUTE AMONG CENTURY21S.G.R. ASSOCIATES 84 PROCEDURES 85

CHAPTER SIXTEEN: RECRUITING PROGRAM 87 PROCEDURES 88

CHAPTER SEVENTEEN: FLOOR OPPORTUNITY 89 FLOOR OPPORTUNITY: 90

CHAPTER EIGHTEEN: ADVERTISING POLICY 91 ADVERTISING PRACTICES 92 SOCIAL MEDIA 95 CHAPTER NINETEEN: TERMINATED AGENTS WITH PENDING CONTRACTS 100 TERMINATED AGENTS WITH PENDING CONTRACTS 101 NOTIFICATION TO COMMISSIONER 101

CHAPTER TWENTY: TRAINING 102 TRAINING 103 FORMS & SAMPLES 104  QUICK START SYLLABUS

APPENDICES 105 APPENDIX ONE: DO NOT CALL 106 APPENDIX TWO: DO’S AND DON’TS FOR BUYERS’ AGENTS 110 APPENDIX THREE: DO’S AND DON’TS FOR SELLERS’ AGENTS 113 APPENDIX FOUR: WEBSITE REQUIREMENTS UNDER ILLINOIS LICENSE ACT OF 2000 117

CHAPTER ONE: GENERAL BUSINESS PRINCIPLES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 1 MISSION STATEMENT

It is the mission of Century 21 S.G.R., Inc., to profitably and ethically provide high quality professional real estate services to the home buying, home selling and real estate investing public. In 2015 our objective is to be the number 1 Century21 office in the Midwest

STATEMENT OF BUSINESS PRINCIPLES

The following principles form the basis for executing the mission statement of Century 21 S.G.R.Inc... Agents, management and staff of the company work as a team to accomplish the mission statement and will abide by these principles.

1. PROFESSIONALISM: Professionalism at Century 21 S.G.R., Inc. means approaching the business with ethical conduct toward our customers and clients. Abiding by the REALTOR® CODE OF ETHICS forms the basis of that standard. Secondly, continuing training and education keep us informed and at the peak of awareness for customer and client. Each agent and employee of Century21 S.G.R.Inc. is pledged to these ideals. 2. INTEGRITY: Simply put, honesty in all business dealings is the best way to get and keep business over the long term. Simple honesty also forms the basis for the best business protection we can get. It is a simple, effective, efficient and cost effective risk reduction method. 3. PROFITABILITY: Century 21 S.G.R., Inc. is in business to make profits in the course of its ordinary activity. Each agent and staff member has a responsibility to the company to contribute to its profitability, whether it is in terms of direct production of revenue or careful expenditure of company funds.

This Office Policy Manual for Century 21 S.G.R., Inc. is designed to guide each agent and staff member in the most important areas of company activity. If a matter is not covered, bring it to the attention of the President/Owner for possible inclusion in future revisions. If a matter is covered, the agent or staff member is expected to act according to this Manual. Failure to act in accord with company policy will be taken into account in future evaluations and/or retention of the agent or staff member.

Century 21 S.G.R., Inc welcomes each new agent and employee to the business of professional, ethical and profitable real estate sales.

THE SEVEN CHARACTERISTICS OF A PROFESSIONAL

1. Specialized knowledge based on extensive preparation. Being a professional does not happen overnight. It requires many hours of study and preparation. Professionals are expected to maintain a high knowledge level and expertise. Organizations compensate professionals for their knowledge.

2. Participates in ongoing training and development. A professional firmly believes in staying current in their field. This means that a professional is committed to continued

| Century21 S.G.R. | Office Policy Manual 2014 | Page 2 training and development.

3. Accepts responsibility. Professionals seek and accept responsibility. A professional is always on time and never leaves a job incomplete. They can be trusted and given high levels of responsibility within the organization. A professional is handed tasks at such a high level, that poor performance can reflect poorly on the entire organization not just the individual.

4. Have a sense of ownership of their work. Professionals feel a sense of ownership and pride in everything they do. Professionals work, not to just meet organization standards, but most importantly meet the standards of their own pride in their work. Professionals work for the organization as if they were working in their own business.

5. Maintain a collective networking spirit outside of the organization. Professionals understand that their work is not limited to their organization. They understand the importance of professional relationships outside of work with others in the same field.

6. Maintains high standards of ethics and integrity. Professionals are driven by a code of ethics. They have a strong sense of right and wrong. Their integrity ensures that they adhere strongly to a set of values about how they do their work. Integrity leads management and others to trust the professional. They say what they will do and do what they say.

7. Maintains high standards of performance. Professionals have high levels of expectations both of themselves and others. They are determined to always do the right thing and do it well. Doing a job well is more important to a professional then the number of hours that they log on the clock. A true professional is unsatisfied with poor performance. While money may be important, it is not the driving force behind the professional’s desire to put forth exemplary work.

It is clear that a professional is defined differently then an average worker. While not every professional will possess every quality of a perfect professional, they do possess most of the traits as defined.

QUALITIES OF A SUCCESSFUL REAL ESTATE PROFESSIONAL

1. Should have a strong internal desire to succeed and have the ability to set and attain goals. 2. Should be able to give to others more than they receive; i.e. to their clients/customers, business acquaintances, associates. 3. Should have the proper balance of ego drive and empathy: The ability to step on someone’s shoes without destroying the shine. 4. Should be enthusiastic about themselves, the Real estate business, and continual real estate training. 5. Should like people and want to get involved with them to help them buy or sell property. 6. Should be able to think on their feet and effectively apply their training to their work.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 3 7. Should be competitive in nature, but believe that selling is a cooperative reality and a win-win situation for client/customer and for associate. Should be honest and have high integrity. 8. Should be physically able to sustain long hours with high integrity. 9. Should have a neat and clean appearance. 10. Should be skilled in the psychology of good communication techniques. 11. Should be persistent and able to take rejection. 12. Should be able to seek positive, creative solutions to solve problem/challenges. 13. Should be willing to become part of a team of associates all working together for a common cause.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 4

CHAPTER TWO: EMPLOYMENT AND BUSINESS PRACTICES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 5 EQUAL EMPLOYMENT OPPORTUNITY POLICY

It is Century 21 S.G.R., Inc policy to provide equal employment opportunities without regard to race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service, to all qualified employees and applicants for employment. This policy applies to all areas of employment, job assignment, training, promotion, transfer, compensation, discipline and discharge. The company abides by all federal, state and local laws regarding employment practices, including, but not limited to the Americans with Disabilities Act.

POLICY AGAINST SEXUAL HARASSMENT

Any harassment of an associate, whether agent, employee or applicant, because of race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service is clearly prohibited and will not be condoned. Sexual harassment is one particular form of discrimination which is illegal and violates the company's longstanding equal employment opportunity policy. Century 21 S.G.R., Inc, maintains a strong policy prohibiting any form of sexual harassment.

No agent, employee, staff member, customer or vendor, male or female, may sexually harass an employee, agent or other person associated with the company by:

1. Making unwelcome sexual advances or requests for sexual favors or other verbal or physical conduct of a sexually suggestive nature; or 2. Making submission to or rejection of such conduct the basis for employment, continued employment or any other employment decision affecting the employee; or 3. Creating an intimidating, hostile or offensive working environment by such conduct.

Any agent or employee who has been found to have sexually harassed another agent or employee will be subject to appropriate discipline up to and including discharge from association or employment.

This policy applies equally to any work-related sexual harassment by or to both men and women employed by or associated with the company or who deal with the company in our business, and it is not limited to supervisor/employee or manager/agent relations or to conduct occurring on premises or during working hours.

Any agent or employee who believes that he/she is being or has been sexually harassed by another agent or employee should promptly take one or more of the following steps.

1. If appropriate, discuss the situation directly with the person whom you feel is harassing you, and politely request that the person cease harassing you because you feel you do not like or welcome his/her conduct. You might also add that if such conduct does not cease altogether, you will take further steps under this procedure. (If the person involved is a customer or client, please refer the complaint to senior management instead.)

| Century21 S.G.R. | Office Policy Manual 2014 | Page 6 2. If you believe that some adverse employment consequence may result from your discussions with that person, or if the harassment continues, go to a higher level of supervision including any senior executive of the company. You may be required to state in writing the specific details of the harassing behavior including date, time, place and witnesses, if any. 3. An investigation of any complaint will be undertaken immediately. All complaints will be handled in a prompt, confidential manner insofar as the investigation permits. There will be no adverse action directed toward any complaining agent or employee or witness as a result of making or supporting the complaint, unless there clearly was bad faith.

FAIR HOUSING POLICY

Century 21 S.G.R., Inc. believes that fair housing policies are not just the law of the land but simply the right thing to do. Century 21 S.G.R., Inc. maintains a strong policy upholding all federal and state fair housing laws and Article 10 of the REALTOR Code of Ethics and the NAR Code of Fair Housing Practices. In addition, Century 21 S.G.R., Inc requires each agent and staff member to participate in periodic fair housing education.

Accordingly, Century 21 S.G.R., Inc, prohibits any agent or staff member from discriminating against any person in the provision of any of the Company's services because of the person’s race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, familial status, military status, sexual orientation, unfavorable discharge from military service, or any other class protected by Article 3 of the Illinois Human Rights Act. The parties agree to comply with all applicable federal, state and local fair housing laws, including the all Chicago Ordinances banning discrimination based on source of income. CHA’s Housing Choice Voucher (Section 8) holders will be shown any and all properties they want to view that they are within the financial parameters they define.

Among the prohibited practices which are against this policy and the law are:

1. Refusing to show, sell or rent based on a person being a member of a protected class. 2. Different treatment/disparate treatment to persons of a protected class. 3. Steering: A person shall not encourage or discourage another from moving into any area because of the race, color, religion, sex, handicap, marital status, familial status, ancestry, age, military status, sexual orientation, or order of protection status. 4. Discriminatory advertising that “expresses” a preference for buyers or tenants of a particular race, color, religion, sex, handicap, marital status, familial status, national origin, ancestry, age, military status, sexual orientation, or order of protection status, or any advertising that would discourage anyone from making an application for housing such as “Not section8 approved”. 5. Harassment (i.e., coercion, intimidation, threats or interference with a person’s fair housing rights or because a party is abiding by fair housing law). 6. Applying more burdensome criteria to applicants of protected classes. (See the company’s Uniform Rental Practices Guide below.) 7. Blockbusting/Panic Peddling: A person is prohibited from inducing or attempting to induce another to sell or rent a property by making any express or implied representations

| Century21 S.G.R. | Office Policy Manual 2014 | Page 7 regarding the entry or prospective entry into a neighborhood of a person or persons of any particular race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service, or any other class protected by Article 3 of the Illinois Human Rights Act. The parties agree to comply with all applicable federal, state and local fair housing laws

Agents and staff should be aware that persons with AIDS are considered handicapped and "familial status" means families with children under the age of 18 years, an individual who is pregnant or an individual in the process of obtaining legal custody of a person under the age of 18 years.

Century 21 S.G.R., Inc. has agreed to and adopted the Fair Housing Partnership as adopted by the National Association of REALTORS® and the Department of Housing and Urban Development. Each agent and staff member of Century 21 S.G.R., Inc. is required to participate in Association and/or Company education regarding the Partnership.

ANTITRUST POLICY

Century 21 S.G.R., Inc. maintains a strong policy against any antitrust involvement by the Company, its agents or employees. Few obligations can be taken more seriously than those in this area. Century 21 S.G.R.Inc. requires each person associated with the Company to participate in antitrust education and acknowledge his/her understanding of these principles. Two areas are the primary antitrust focus.

1. PRICE FIXING: Price fixing means any agreement, setting, consent to, suggestion or implication with a competitor regarding a fee to charge. This includes fees charged to the public, fees split among brokers and fees paid to agents. "Agreement" can be overt, covert, express or implied. It is very broad and can even be suggested or implied by casual conversation with any competitor.

Accordingly, Century 21 S.G.R., Inc., its agents and staff are prohibited from discussing with any competitor, including an individual agent, any aspect of the fees the Company charges or how total fees are split. Century 21 S.G.R.Inc. determines its charges based on the Company's own independent internal analysis of its expenses, its revenue, its desired profit level and its choice of the type and level of service it desires to provide.

In any discussion with a member of the public about our charges (such as a listing appointment), the only acceptable answer about why the Company charges what it does is the foregoing explanation. Do not be drawn into a discussion about Company fees as "the standard rate," "the Association rate," "the typical rate" or the like. If questions arise about other Company's fees, suggest that the potential client call several competitors and ask about their rates. 2. BOYCOTTING COMPETITION: It is also a violation of federal law to make any agreement, express or implied, with a competitor to boycott or otherwise not deal with a third party competitor. For example, assume Discount Realty opens up an office. Then

| Century21 S.G.R. | Office Policy Manual 2014 | Page 8 assume Bob Broker, an agent with Big Bucks Broker, and Alice Agent, an agent with Just As Big Broker are having lunch one day and discuss the competitive impact of Discount Realty. Bob and Alice agree that Discount is a danger to their large listing portfolios and further agree that individually they will not show Discount's listings because "Something has got to be done about that price-cutting monger." This simple agreement with two agents is an illegal boycott. Even if it were implicit and not overt, it could be construed as an illegal boycott.

Century 21 S.G.R., Inc prohibits any agent or staff member from making any agreement or suggestion with a competitor, including an individual agent, that he/she or the Company will not deal with a third broker or agent, whether it be a listing company, buyer's brokerage, discount broker or any other broker or agent whatsoever.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 9

FORMS & SAMPLES

 UNIFORM RENTAL PRACTICES GUIDE  RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK FORM  RENTAL APPLICATION REQUIREMENT FORM

| Century21 S.G.R. | Office Policy Manual 2014 | Page 10

RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK

Each applicant must complete a rental application package. Applicants and occupants may be required to submit supplemental documents as requested.

An "applicant" is any household member who will be contributing to the monthly rental payment for the apartment.

An "occupant" is any household member who will not be contributing to the monthly rental payment for the apartment.

Application Package  Rental application for each applicant  Application fee (non-refundable)  $60 for one applicant; $120 for two applicants; $180 for three applicants  3% credit card fee if used as method of payment  Income & expense worksheet  2 copies of recent employment pay stubs, pension check, disability check, CHA voucher, financial aid allowance, student loan, etc.  Verification of enrollment (if applicant is a student)  Student loan deferment letter (must include deferred amount and term of deferment)  Copy of Driver's License

RENTAL SELECTION CRITERIA

Century21 S.G.R. will use the selection criteria below as a guide for evaluating each applicant. Applicants are encouraged to provide supplemental documentation for selection criteria that they fail to meet.  Minimum credit score of 700  Monthly rent shall be less than 40% of household gross monthly income  Monthly debt and rent should equal to or be less than 60% of applicant's income  If applicant has student loans in deferment, then the end date of the deferment is required  Verification of employment (i.e. VOE form, copy of paycheck, bank statements, or letter from supervisor)  Verification of enrollment  No evictions within the last ten years  No delinquent payments within the last year  No bankruptcy within the last five years  No civil judgments or open collection items  No criminal convictions or arrests for theft, violent crimes, sexual offenses or drug-related offenses within the last 10 years  No utilities in collection, including gas and electric *If approved, first month’s rent and security deposit are due at signing

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 1

Rental Address: Date of Application:

Rental Amount $ ______Requested Lease Term: ______Requested Move-In Date: ______

APPLICANT UNDERSTANDS THAT THERE IS A NON-REFUNDABLE APPLICATION FEE OF $60 (one applicant), $120 (two applicants), $180 (three applicants). We accept check or money order that make fee payable to Century21 S.G.R., or visa/ master card with 3% credit card fee

PLEASE PRINT AND ANSWER ALL QUESTIONS 1. APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

CURRENT LANDLORD/MORTGAGEE INFORMATION Own Rent Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 2

JOINT APPLICATION? YES NO ______IF 'NO', PLEASE PROCEED TO #3 (OTHER OCCUPANTS)

2. JOINT APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

IF CURRENT AND/OR PREVIOUS LANDLORD/MORTGAGE INFORMATION IS THE SAME FOR JOINT APPLICANT - PLEASE PROCEED TO EMPLOYMENT SECTION

CURRENT LANDLORD/MORTGAGEE INFORMATION ______Own Rent _____ Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

3. OTHER OCCUPANTS - LIST BELOW THE NAMES OF ALL OTHER PERSONS (IN ADDITION TO APPLICAN(S) LISTED ABOVE) TO OCCUPY PREMISEES REGULARLY. OCCUPANCY IS RESTRICTED TO INDIVIDUALS LISTED. A CRIMINAL BACKGROUND CHECK WILL BE PERFORMED IF 14 YRS.+

Full Name Relationship Date of Birth Remarks

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 3

4. AUTOMOBILES How Many Autos? Applicant #1: Driver's Lic. # VERIFIED Applicant #2: Driver's Lic. # MAKE MODEL YEAR COLOR LIC. PLATE # STATE

5. OTHER INCOME SOURCE AMOUNT PHONE # REFERENCE VERIFIED

6. FINANCIAL REFERENCES NAME ADDRESS ACCOUNT NUMBER(S)

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

7. PERSONAL REFERENCES - Please provide the names of two individuals not related to applicant. NAME ADDRESS PHONE #

8. EMERGENCY INFORMATION

Member of your immediate family ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

Another emergency contact ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

9. LEASING AGENT INFORMATION

Print Name: Brokerage:

Phone #: Fax #: E-Mail:

Have you ever been convicted of a crime? If yes, please provide a letter of explanation. YES / NO

Have you ever been evicted? If yes, please provide a letter of explanation. YES / NO

Have you ever filed bankruptcy? If yes, please provide a letter of explanation. YES / NO Have you had credit under any other name within the last five years? YES / NO What is the name? ______

How were you referred to us? ______

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 4

10. PETS INFORMATION Type of Pet # Pets Pet Weight (lb) 1.______2.______

I/We declare the information above is true and correct. In connection with the application, I/We authorize all Corporations, Companies, Credit Agencies, Banks, Persons, Educational Institutions, Law Enforcement Agencies, Military Services and current and former employers to release information, including salary, they may have about me to Century21 S.G.R., Inc. and its agents for housing at the above referenced Rental Location and release them from any liability or responsibility for doing so. Further, I/We authorize procurement of an investigative consumer report and understand that such a report may contain information about my background, character, and personal reputation and that further information may be made available upon written request within a reasonable period of time. I/We also understand that a criminal background check may be obtained relevant to this application. I/We understand by signing this release, I/We are allowing Century21 S.G.R., Inc to perform a criminal background search on additional occupants for the address applied for. I/ WE understand this notice will also apply to any further update reports that may be requested.

As an applicant, I represent that the above statements are correct and complete. The information may be use in determining whether to lease to me an apartment at the building. I agree that I have no right to occupy an apartment in the building until and unless this application is approved, a lease is signed and I have made any necessary initial payments. I understand that any misrepresentation on this application may be cause for lease termination and/or non-acceptance of this application.

Applicant #1: Print Name Signature Date

Applicant #2: Print Name Signature Date

The above signature(s) are allowing a 'social security trace/criminal only' report be completed on the following occupants:

Name: ______Social Security # ______DOB ______

CURRENT ADDRESS FOR ABOVE NAMES

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 5

INCOME AND EXPENSE SUMMARY

Rental Address:

Applicant(s):

Monthly Rent $

INCOME Monthly Income Source of Income: Applicant #1 Wages: $ Applicant #2 Wages: $ Other Income: $ Other Income: $

Total Monthly Income = $

EXPENSES (e.g., medical bills, insurance, vehicle loans, credit card debt, student loans, and child support)

Payee Monthly Payment Balance Owed

Total Monthly Expenses =

Applicant #1 Signature

Applicant #2 Signature

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 6

RENTAL APPLICATION REQUIREMENTS

Each applicant must complete a rental application package. Applicants and occupants may be required to submit supplemental documents as requested.

An "applicant" is any household member who will be contributing to the monthly rental payment for the apartment.

An "occupant" is any household member who will not be contributing to the monthly rental payment for the apartment.

Application Package  Rental application for each applicant  Application fee (non-refundable)  $50 for one applicant; $100 for two applicants; $150 for three applicants  3% credit card fee if used as method of payment  Income & expense worksheet  2 copies of recent employment pay stubs, pension check, disability check, CHA voucher, financial aid allowance, student loan, etc.  Verification of enrollment (if applicant is a student)  Student loan deferment letter (must include deferred amount and term of deferment)  Copy of Driver's License

RENTAL SELECTION CRITERIA

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 1

Rental Address: Date of Application:

Rental Amount $ ______Requested Lease Term: ______Requested Move-In Date: ______

APPLICANT UNDERSTANDS THAT THERE IS A NON-REFUNDABLE APPLICATION FEE OF $50 (one applicant), $100 (two applicants), $150 (three applicants). We accept check or money order that make fee payable to Century21 S.G.R., or visa/ master card with 3% credit card fee

PLEASE PRINT AND ANSWER ALL QUESTIONS 1. APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

CURRENT LANDLORD/MORTGAGEE INFORMATION OwnRent Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 2

JOINT APPLICATION? YES NO ______IF 'NO', PLEASE PROCEED TO #3 (OTHER OCCUPANTS)

2. JOINT APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

IF CURRENT AND/OR PREVIOUS LANDLORD/MORTGAGE INFORMATION IS THE SAME FOR JOINT APPLICANT - PLEASE PROCEED TO EMPLOYMENT SECTION

CURRENT LANDLORD/MORTGAGEE INFORMATION ______Own Rent _____ Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Full Name Relationship Date of Birth Remarks

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 3

4. AUTOMOBILES How Many Autos? Applicant #1: Driver's Lic. # VERIFIED Applicant #2: Driver's Lic. # MAKE MODEL YEAR COLOR LIC. PLATE # STATE

5. OTHER INCOME SOURCE AMOUNT PHONE # REFERENCE VERIFIED

6. FINANCIAL REFERENCES NAME ADDRESS ACCOUNT NUMBER(S)

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

7. PERSONAL REFERENCES - Please provide the names of two individuals not related to applicant. NAME ADDRESS PHONE #

8. EMERGENCY INFORMATION

Member of your immediate family ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

Another emergency contact ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

9. LEASING AGENT INFORMATION

Print Name: Brokerage:

Phone #: Fax #: E-Mail:

Have you ever been convicted of a crime? If yes, please provide a letter of explanation. YES / NO

Have you ever been evicted? If yes, please provide a letter of explanation. YES / NO

Have you ever filed bankruptcy? If yes, please provide a letter of explanation. YES / NO Have you had credit under any other name within the last five years? YES / NO What is the name? ______

How were you referred to us? ______

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 4

10. PETS INFORMATION Type of Pet # Pets Pet Weight (lb) 1.______2.______

Applicant #1: Print Name Signature Date

Applicant #2: Print Name Signature Date

The above signature(s) are allowing a 'social security trace/criminal only' report be completed on the following occupants:

Name: ______Social Security # ______DOB ______

CURRENT ADDRESS FOR ABOVE NAMES

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 5

INCOME AND EXPENSE SUMMARY

Rental Address:

Applicant(s):

Monthly Rent $

INCOME Monthly Income Source of Income: Applicant #1 Wages: $ Applicant #2 Wages: $ Other Income: $ Other Income: $

Total Monthly Income = $

EXPENSES (e.g., medical bills, insurance, vehicle loans, credit card debt, student loans, and child support)

Payee Monthly Payment Balance Owed

Total Monthly Expenses =

Applicant #1 Signature

Applicant #2 Signature

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 6

CHAPTER THREE: ADMINISTRATIVE GUIDELINES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 11 PURCHASING GUIDELINES

Management will not be liable for the debts of the sales associates. All orders that are NOT approved by the Broker and services placed by the associate directly with the supplier are the sole responsibility of the sales associate.

1. Where applicable the sales associate should make a check payable to the supplier. 2. When local, state or national realty dues are paid, sales associate should make his/her check payable to the board.

In general, associates pay for business personal expenses such as insurance, MLS dues, license fees, trade association memberships, personal sales promotion items and career apparel. However, in order to maintain consistency in advertising and image, associates should order personal sales material items through the manager or receptionist. All advertising and promotional materials must be signed off by the Managing Broker.

S.G.R., Inc. name badges are strongly recommended at open houses, listing presentations and showings. Name badges enhance the company image and team spirit by identifying the wearer as part of a large, reliable organization, recognizable to the public through our national advertising. Contact the accounting department concerning information on ordering your name badge.

BUSINESS CARDS, BADGES, NAME PLATES

Designation or titles: Each Sales Associate may use the designation Realtor®, or “Broker”. The designation may be used without the express permission of the Managing Broker.

a. Logo regulations: Business cards and name badges will be ordered from a Century 21 approved supplier who will print with Century 21 logo rules and regulations. In no case will there be any deviation from the Century 21 approved layout, format, logo, design, color, or paper and stock specified in “The Logo Book”.

Photos on business cards are optional but highly recommended.

MULTIPLE LISTING IN-PUT FEES

The company assist the sales associates in obtaining sufficient listings; the company will automatically pay the Listing fees under these circumstances. 1. Listing must be an exclusive right to sell. 2. Listing must be for 210 days or longer. 3. Listing must be priced within the Comparative Market Analysis (CMA) findings. 4. Listing must specify a commission of at least 5% of the selling price, unless pre- approved by Management. 5. The staff will in-put ALL listings and it is the responsibility of the agent to check for errors and sign off on the listing.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 12 Only office staff can in-put listings. Any individual who violates this company policy is subject to a $500.00 fine.

When a Seller is not willing to cooperate with the price, terms and length of the listing, the sales associate cannot be afraid to refuse this listing. Such property may sit on the market unsold, and this makes for a dissatisfied client and reflects negatively on the office. Management must review all Listings before submission to the MLS. No listing will be input in the MLS unless at least 9 professional pictures are presented with the in-put sheet. Remember, you can in-put 16 pictures to the MLS. and 25 to Realtor.com. Take advantage of this additional exposure. It costs you no more.

POSTAGE COSTS

It is entirely the responsibility of the agent to pay all postage costs without prior approval from Management.

BROKER EXPENSES

 Lead generation from floor and Lead Router; lead generation from new developments.  Full access to 21online.com marketing platform.  Ads to market the company and properties, as selected by the firm.  Approved continuing education classes.  Approved seminars.  Local Calls.  Desk space.  Marketing (per established budget and policy)  In-house computers and printers.  Listing fees.  Yellow page institutional ads.  Maintenance of physical structure.  Support staff.  Management staff.  Century 21 Corporate email.  Sales contests.  Fax.  Internet access.  Free Realtor.com “Showcase” for all listings.  Listings posted to over 856 websites.  Free agent website.  Free email newsletters.  Free e greetings.  YAPMO platform  Business Builder  Golden Ruler  More than 300 online courses

| Century21 S.G.R. | Office Policy Manual 2014 | Page 13  In-house training  Mentoring

AGENT EXPENSES

The agent will be expected to pay for all other expenses, including these particular expenses.

 Home Phone.  Automobile.  Automobile Insurance.  Hospitalization Insurance.  Errors and Omissions Insurance of $790 per year if paid in one installment or $240 per quarterly if paid in four installments.  Preferred client club ($43.00 per transaction).  Century 21 S.G.R., Inc name badge.  CAR membership dues.  MLS dues.  Business cards.  Car signs.  Yard signs.  Name riders on yard signs.  Open House Signs.  All advertising over and above company sponsored advertising.  All advertising not authorized and placed by the company.  Professional membership fees and dues.  Farming giveaways.  Any expense not previously approved by the Managing Broker.  Gifts to customers, business entertainment/meals.

The list of expenses paid by the company or agent may be amended by the company from time by appropriate publication to all agents.

OFFICE HOURS

Century 21 S.G.R., Inc regular office hours are 9 a.m. to 6 p.m. Monday through Friday. Office hours on Saturday are 10:00 a.m. to 4:00p.m. Sunday 10:00 a.m. to 4 p.m. Changes may occur periodically and notices will be posted.

OFFICE OPENING AND CLOSING PROCEDURES

The last individual leaving the office in the evening should make sure all the lights are turned off and the copy machine etc. is turned off. He/she must set the alarm. If they have

| Century21 S.G.R. | Office Policy Manual 2014 | Page 14 not been with the company long enough to have an alarm code, he/she must leave with an individual who does have a code so it will be set for the night. The first person entering the office in the morning must deactivate the alarm using their code.

HOLIDAYS AND HOLIDAY HOURS

Century 21 S.G.R., Inc. will post the holidays on which the office will be either closed or open but with an abbreviated schedule at the beginning of each year. Any such schedule will be posted subject to change.

VACATIONS

Brokers can schedule their own vacations but Management expects them to use their judgment that overlaps do not leave the office shorthanded. Staff employees are guided by the staff hand book. The Brokers are Independent Contractors and receive no vacation pay from the company.

Brokers should arrange for another agent to look after their business during their vacation, illness, or absences. As required by law the vacationing associate should notify all customers/clients of the replacement and supply the replacement, the manager and the receptionist a list of additional agents handling their transactions, listings etc., and supply all with their vacation telephone number and if these minimum responsibilities are not met the manager retains the right to assign another associate to work on the transaction and share any commission.

FAMILIARIZATION WITH THE OFFICE

Immediately upon entering their Independent Contractors Agreement with Century 21 S.G.R., Inc. the new brokers will, with the help of the staff, familiarize themselves with the office. This process will include, but not be limited to, the telephone system, voicemail, e-mail, the work spaces, schedules of meetings and other important events, how all machines work, and other pieces of practical information. The objective is for the individual to function independently within 5 business days.

SMOKING POLICY

Smoking is prohibited in any office of Century 21 S.G.R., Inc. including private offices, conference rooms, rest rooms and areas not normally accessible to the public. Smoking is only permitted outdoors in an area that is located at least 50 feet away from any door to the building.

SUBPOENAS AND SUMMONSES

If a process server appears in the office with a subpoena or summons for the company, any employee or agent should accept it. Once accepted, it should immediately be turned over to the managing broker. The managing broker should immediately contact the President or other officer of the company. In the absence of any of these persons, the managing broker should

| Century21 S.G.R. | Office Policy Manual 2014 | Page 15 contact the company's attorney. If the process server asks for a specific person, only that specific person may accept the subpoena or summons. If that person is not in the office, the person receiving the inquiry should not volunteer any information about the person requested and should not give out home phone numbers or home addresses, even if asked. Refer the inquiry to the managing broker immediately.

INQUIRIES/VISITS BY GOVERNMENT OFFICIALS

Any inquiry by a government official, whether by telephone, letter or in person, should immediately be forwarded to the managing broker. In the absence of the managing broker, the name of the official and agency or department he/she represents should be obtained. Then, the President or other officer of the company should be contacted. If none of these persons are available, the person receiving the inquiry should immediately contact the company's attorney by phone and request that she/he come to the office. Unless presented with a valid search warrant signed by a federal judge or a judge of the county in which the office is located, the person receiving the inquiry should not allow any representative from a local, state or federal office to see any files or any information maintained in the office, nor should the person ever answer any questions of such a representative unless the company's attorney is present.

AGENT SAFETY

It is critically important that an agent be aware of safety risks inherent in any business. The residential real estate business presents certain safety risks because of the time of day and week when much of the business is conducted. Century 21 S.G.R., Inc. has the following safety policies, guidelines and suggestions:

1. If the agent does not know a customer, try to arrange a meeting at the office or other public place. Another alternative would be to do a basic internet search of the name of the individual(s). 2. NEVER meet a prospect at a vacant house ALONE. ALWAYS take another person with you. DO NOT meet the prospect after dark. 3. ALWAYS let the office or someone at your home know where you will be when showing property, especially, to prospects you are first meeting. 4. When on the showing, DO NOT go to dark areas, basements, garages, or areas without multiple exits. Allow the prospect to view those areas on his/her own and stay in an area which allows for quick exit. 5. ALWAYS drive your own car. DO NOT let a prospect you do not know drive your car. Preferably, meet the prospect at the office, tell the office your destination and expected time of return and drive separate cars to the showing. 6. USE COMMON SENSE. If something doesn't feel right or look right, trust your instincts and remove yourself from the situation. 7. Whether to use self-defense techniques and how to handle a crisis if it occurs are personal decisions. Think about your choices in advance.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 16 MONTHLY COMPANY MEETINGS

Century 21 S.G.R., Inc. provides extensive internal training. All agents are encouraged to attend these sessions. The company also has monthly meetings. The agents are given sufficient notice of when and where these meetings are held via email. At the company meetings, all changes in company policies are announced; new IDFPR regulations are reviewed, training initiates started, and sale contests joined. In total, the company on average holds 10 monthly meeting in any given calendar years. In keeping with Illinois Law and regulation that offices have the rights to set office policies, these meeting are to be considered mandatory. One or two absences are understandable; chronic absences will lead to termination.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 17

FORMS & SAMPLES

 ERROR & OMISSION INSURANCE INVOICE 2015  APPOINTMENT OF TEMPORARY ADDITIONAL DESIGNATED AGENT(S) FORM

| Century21 S.G.R. | Office Policy Manual 2014 | Page 18

Error & Omission Insurance Invoice 2015 Each year sales associates are required to pay a NON-REFUNDABLE E&O premium The following payment plan options are available for 2015

Plan Options (select the option that best fits your budget) □ I select the Annual Payment plan (Jan – Dec 2015) with the full amount of $790.00 due on or by January 1, 2015. A late fee of $50.00 will be assessed for payments received after January 15, 2015. Credit card payments are available with a 3% bank charge fee. □ I select the Four-Installment Payment plan - $240.00 due on or before January 1, 2015 - $240.00 on or before April 1, 2015 - $240.00 on or before July 1, 2015 - $240.00 on or before October 1, 2015 A late fee of $50.00 will be assessed for payment received after January 15, 2015 for the first installment, $50.00 for payments received after April 15, 2015 for the second installment, $50.00 for payments received after July 15, 2015 for the third installment, and $50.00 for payment received after October 15, 2015 for the fourth installment. Credit card payments are available with a 3% bank charge fee.

I understand and agree that the above selections are paid as long as the agent is associated with Century 21 S.G.R., Inc. I also understand and agree that should I terminate my affiliation with Century 21 S.G.R., Inc. for any reason during the year, the remaining amounts of the 2015 E&O insurance that have not been paid, shall be accelerated and due upon day of termination. I further understand and agree that consistent with other agent billing processes that if any amount from the E&O premium or other agent billing are not paid when due, then I authorize the full amount due to be entered into agent billing and automatically deducted from my next closing. I also understand that the E&O premium amounts may change on an annual basis and will be communicated prior to open enrollment in January.

I understand that the policy is $1,000,000 for incident with a $5,000 deductible per incident. I further understand that the $5,000 deductible will be split with the company based on my scheduled commission at the time of the incident. For example if my commission is 60% at the time of the suit… I will be charged $3,000 which is payable immediately upon receipt of lawsuit.

Agent Signature (Required) ______Date ______

Print Agent Name (Required) ______Agent ID# ______

PAYMENT □ CHECK CREDIT CARD: □ VISA □ MASTERCARD Card Number ______Exp. Date ______Cardholder Name (Please print) ______Cardholder Signature ______

Please Return This Form To Your Office Administrator. ALL PAYMENTS WILL BE PROCESSED AS RECEIVED. APPOINTMENT OF TEMPORARY ADDITIONAL DESIGNATED AGENT(S)

The Illinois Real Estate License Act allows a Broker to enter into an agreement with Client (as defined below) that specifically designates one or more of the sales associates affiliated with or employed by Broker as Client's legal agent. This appointment of one or more sales associates as Client's designated legal agent is to the exclusion of all other sales associates affiliated with the Broker.

Client acknowledges and agrees that the statutory duties owed by an agent to his/her principal will only be owed to Client by sales associate(s) that is (are) designated as Client's legal agent(s). Broker and other sales associates affiliated with or employed by Broker will not be the legal agent(s) of the client or have any statutory relationship with the Seller(s).

associate(s) affiliated with Broker, is (are) being named as Client's Temporary Additional Designated Agent(s) under the Client's Agreement with Broker. Client understands and agrees that the client's Designated Agent(s) will be the Client's legal agent for a period commencing and ending pursuant to the Agreement with Broker and Broker will be free to enter into agreements with other clients (i.e. Buyers and/or Sellers) as legal agents of those clients. Client also understands and agrees that neither Broker nor other sales associates affiliated with Broker will be acting as legal agents of the Client. Client acknowledges that he/she received a copy of this Addendum and agrees to the establishment of this agency.

Client

Date

Broker (Print Name of Firm)

By:

REV 03/02

CHAPTER FOUR: PERSONAL ASSISTANTS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 19 USE OF PERSONAL ASSISTANTS

A growing trend in the real estate business is for high producing agents to use specific persons, both licensed and unlicensed, as their assistants. Century 21 S.G.R., Inc. encourages the appropriate use of personal assistants as a tool for high earning agents to be even more productive. Several caveats are in order from the perspective of the company. Many of the distinctions are based on whether a licensed or unlicensed assistant is used. Century 21 S.G.R., Inc. policies on the use of personal assistants are as follows:

1. EMPLOYEE v. INDEPENDENT CONTRACTOR: Whether licensed or unlicensed, the agent must decide whether to associate with the personal assistant (hereafter "PA") as an employee or independent contractor. Remember, that if the PA is licensed the employment or independent contractor agreement will be between Century 21 S.G.R., Inc. and the PA. Serious issues of the right of control, method of payment and direction of the work exist if the agent chooses to have an independent contractor PA. Century 21 S.G.R., Inc., strongly urges the agent to consult with her/his tax consultant and/or attorney to determine the proper procedures in making this choice. If independent contractor status is chosen, all of the issues mentioned above regarding withholding, unemployment taxes, worker's compensation and automobile insurance will be dealt with in the independent contractor agreement between the Century 21 S.G.R., Inc. and the PA. The form of independent contractor agreement used by Century 21 S.G.R., Inc. will be signed by the PA unless the agent with whom the PA works indicates otherwise.

If employee status is chosen for a licensed PA the employment agreement will be between Century 21 S.G.R, Inc. and the licensed PA with related costs and expenses being charged back to the agent with whom the PA works. The agent should be aware that for an unlicensed PA all employment taxes, withholding reports, unemployment tax reports, worker's compensation insurance and reports and W2 forms are the responsibility of the agent. Century 21 S.G.R., Inc. will not to be a party to the arrangement between the agent and the unlicensed PA and will not be responsible for any employment activities of the agent.

2. UNLICENSED PERSONAL ASSISTANTS: The policy of Century 21 S.G.R., Inc is that unlicensed personal assistants WILL NOT UNDER ANY CIRCUMSTANCES perform licensed real estate activities as defined in the License Law (Section 1-10). The agent associating with the PA is strictly responsible for maintaining this policy. If an unlicensed PA does any licensed activities, the agent puts herself/himself in jeopardy of disassociation. The Illinois Department of Financial and Professional Regulation (“IDFPR”) has taken a position as to the types of things unlicensed office personnel may and may not do. Please review Section 1450.165 of the License Law rules to familiarize yourself with these items. The policy of Century 21 S.G.R., Inc. is that unlicensed personal assistants fall into the same category as unlicensed office personnel.

The agent is further advised that unlicensed persons may not be paid any fees or commissions. The company will not split commissions with an unlicensed person.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 20 3. LICENSED PERSONAL ASSISTANTS: By definition, a licensed PA can perform licensed activities. The license of the PA must be held by Century 21 S.G.R., Inc. and any payments for the real estate business must come from Century 21 S.G.R., Inc.

The easiest and cleanest way to accomplish this end is for the agent to split commissions as they are earned with the licensed PA in whatever proportion the two parties negotiate. The amount of the split between the PA and the agent should be specific and regular and should not vary per transaction. The company requires written agreements between the company and both agents to delineate the relationship and also requires the PA and agent enter into a written agreement defining the relationship and specifying the compensation arrangement.

FUNCTIONS OF UNLICENSED OFFICE PERSONNEL

The policy of Century 21 S.G.R., Inc regarding the functions and use of unlicensed office personnel follow the License Law rules promulgated by IDFPR. The general policy is that unlicensed office personnel (secretaries, assistants, personal assistants, receptionists, accounting personnel, etc.) are to be used in a support role to the main real estate business function of the company. UNDER NO CIRCUMSTANCES will unlicensed office personnel be allowed to engage in licensed activities.

"Engaging in licensed activities" means doing any of the acts for which a license is required as defined in the License Law (Section 1-10).

Further defining this area is Section 1450.165 of the License Law rules. This section explicitly allows for the use of unlicensed clerical personnel to support licensed activities but strictly limits their ability to perform licensed activities.

The Rule governing unlicensed PA's states that the unlicensed PA may:

1. answer the telephone, take messages, and forward calls to a licensee; 2. submit listings and changes to a multiple listing service; 3. follow up on a transaction after a contract has been signed; 4. assemble documents for a closing; 5. secure public information from a courthouse, sewer district, water district, or other repository of public information; 6. have keys made for a company listing; 7. draft advertising copy and promotional materials for approval by a licensee; 8. place advertising; 9. record and deposit earnest money, security deposits, and rents; 10. complete contract forms with business and factual information at the direction of and with approval by a licensee; 11. monitor licenses and personnel files; 12. compute commission checks and perform bookkeeping activities; 13. order a sign for a property from an approved installer; 14. order items of routine repair as directed by a licensee;

| Century21 S.G.R. | Office Policy Manual 2014 | Page 21 15. prepare and distribute flyers and promotional information under the direction of and with approval by a licensee; 16. act as a courier to deliver documents, pick up keys, etc. 17. place routine telephone calls on late rent payments; 18. schedule appointments for the licensee (this does not include making phone calls, telemarketing, or performing other activities to solicit business on behalf of the licensee); 19. respond to questions by quoting directly from published information; 20. sit at a property for a broker tour which is not open to the public; 21. gather feedback on showings; 22. provide concierge services and other similar amenities to existing tenants; 23. manage or supervise maintenance, engineering, operations, building trades and security; 24. perform other administrative, clerical, and personal activities for which a license under the Act is not required.

An unlicensed PA may not:

1. host open houses, kiosks, or home show booths or fairs; 2. show property; 3. interpret information on listings, titles, financing, contracts, closings, or other information relating to a transaction; 4. explain or interpret a contract, listing, lease agreement, or other real estate document with anyone outside the licensee’s company; 5. negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee; or 6. perform any other activity for which a license under the Act is required.

PAYMENTS TO UNLICENSED PERSONS

Century 21 S.G.R., Inc. maintains a strong policy that no unlicensed person will be paid for any real estate activity requiring a license. The License Law (Sections 10-15(a) and 20-20(a) (38) makes clear that an unlicensed person may not be paid for engaging in licensed activities.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 22

CHAPTER FIVE: INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT

| Century21 S.G.R. | Office Policy Manual 2014 | Page 23 INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT

Century 21 S.G.R., Inc. has a policy of associating with its licensees as independent contractors or statutory non-employees (independent contractors). Each agent will be required to sign the Century 21 S.G.R., Inc. Broker (Sponsoring Broker-Broker Contract) agreement setting out the relationship as an independent contractor. While the exact terms of the relationship are covered in the contract, a few reminders about being an independent contractor follow.

1. Income Taxes: All income taxes, federal and state, are the responsibility of the agent. The company does not withhold or pay Social Security taxes on commission earnings. Self employment tax must be paid by the agent. *2. Unemployment Taxes: As an independent contractor, the agent is not covered under state or federal unemployment laws. Independent contractor real estate agents acting under an agreement such as the Century 21 S.G.R., Inc. form, are exempt from the unemployment laws by Illinois statute. Accordingly, Century 21 S.G.R., Inc does not pay unemployment taxes on the earnings of its agents. *3. Worker's Compensation: As with unemployment taxes, an independent contractor real estate agent signing an independent contractor agreement like the Century 21 S.G.R., Inc. form is exempt from the worker's compensation laws by Illinois statute. Given this statute, Century 21 S.G.R., Inc does not cover agents under its worker's compensation insurance policy. An agent should check that her/his insurance, particularly health and accident insurance, is adequate.

4. Automobile Insurance: Each agent should carry adequate automobile insurance to protect not only the agent but also the customer or client. In today's legal climate, liability coverage of $100,000.00 per person, $300,000.00 per accident should be obtained. Any lesser amounts could cause unnecessary exposure of personal assets. Consult carefully with your insurance agent. The agent must name Century 21 S.G.R.Inc. as an additional insured and provide the company with a certificate reflecting that status.

Each agent is reminded that state law requires each person in the front seat of an automobile to wear a seat belt. In addition, state law requires that any child age four or younger must be in an approved child restraint system when seated in a vehicle. To reduce risk, we strongly recommend that you insist that all occupants of your vehicle wear safety belts and that all children age four or younger sit in an approved child restraint system. You should also note that any infant's car seat, (children approximately one year or younger) should not face forward, but should face the rear of the vehicle. In cars equipped with passenger side airbags, a car seat should never be installed in the front passenger seat but always installed in the rear seat(s). In addition, children and small adults should not sit in the front passenger seat. Airbags are known to release with such force that injury or death is possible for children and small adults.

* In Illinois, a licensee must receive all his/her compensation from commissions to be exempt from unemployment tax laws and worker’s compensation withholding. With regard to unemployment tax laws, in Illinois, if the licensee does not receive all his/her

| Century21 S.G.R. | Office Policy Manual 2014 | Page 24 compensation in commissions, he/she must meet a three-part test to be considered an independent contractor. 5. Expenses: As an independent contractor, each agent is expected to be in business for herself/himself. Generally, the expenses of that business will be the responsibility of the agent. Century 21 S.G.R., Inc. will provide the following items and/or pay for the following expenses:  You need an access code to use the copy machine. Faxes and emails are free of charge.  Each month an agent receives 25 counts for color print/ and 200 copies for black/white. The count allowance cannot be carried over to the next month.  Copies over the limit defined above will be charged to the agent’s account as follows: $00.25 for each color copy $00.05 for each black and white copy.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 25

FORMS & SAMPLES

 INDEPENDENT CONTRACTOR/ EMPLOYEE AGREEMENT SAMPLE  PERFORMANCE-BASED COMMISSION AGREEMENT SAMPLE

| Century21 S.G.R. | Office Policy Manual 2014 | Page 26 Date: ______

West Loop: 1161 W. Madison St. Chicago, IL 60607 South Loop: 1823 S. Michigan Ave. Chicago, IL 60616 Lincolnwood: 6600 N. Lincoln Ave., Suite 213 Lincolnwood, IL 60712

INDEPENDENT CONTRACTORS AGREEMENT

THE TERM OF THIS AGREEMENT IS FOR ONE YEAR. IT SHALL TERMINATE ONE YEAR FROM THE EXECUTION OF THIS AGREEMENT WHICH IS STATED ON PAGE 4.

This agreement made this ______day of ______, by and between Century 21 S.G.R., party of the first part, hereinafter referred to as the Sponsoring Broker, and ______, party of the second part, hereinafter referred to as Broker, for and in consideration of their mutual promises and agreements and for their mutual benefits, witnesseth.

Whereas, said Sponsoring Broker is now, and has for many years, been engaged in business as a general Real Estate Broker in the County of Cook, City of Chicago, State of Illinois, and is qualified to and does operate a general Real Estate business and is duly qualified and does procure the listings of real estate for sales, lease or rental and prospective purchasers, lessees and renters thereof and has and does enjoy the good will of, and a reputation for, dealing with the public.

Whereas, said Sponsoring Broker maintains offices in said County, properly equipped with furnishings and other equipment necessary and incidental to the proper operation of said business and staffed with independent contractors (Brokers) and employees, and is now and has been engaged in business as a Real Estate Company and has enjoyed and does enjoy a good reputation for fair and honest dealing with the public as such.

Whereas, it is deemed to be to the mutual advantage of said Sponsoring Broker and said Broker to form the association hereinafter agreed to under the terms and conditions hereinafter set out, therefore:

1. The Sponsoring Broker agrees to make available to the Broker all current listings of the office, except those the Broker may find expedient to place exclusively in the temporary possession of some other Broker, and agrees to assist the Broker in his/her work by advice, instruction, and full cooperation in every way possible.

2. The Sponsoring Broker agrees that the Broker may share with other Brokers all the facilities of the office now operated by said Sponsoring Broker in connection with the subject matter of this contract, which offices are now maintained at: 1161 W. Madison St., Chicago, Illinois 60607; 1823 S. Michigan Ave., Chicago, Illinois 60616; and 6600 N. Lincoln Ave., Suite 213, Lincolnwood, Illinois 60712.

1 3. The Broker agrees to work diligently and with his/her best efforts to sell, lease or rent any and all real estate listings with the Sponsoring Broker, to solicit additional listings and customers of said Sponsoring Broker, and otherwise promote the business of serving the public in real estate transactions to the end that each of the parties hereto may derive the greatest profit possible.

4. The Broker agrees to conduct his/her business and regulate his/her habits, so as to maintain and to increase the good will and reputation of the Sponsoring Broker, and the parties hereto agree to conform and to abide by all laws, rules, and regulations of the State of Illinois and the Sponsoring Broker, and codes of ethics that are binding upon or applicable to real estate Brokers.

5. By the signing of this agreement, it shall be known that the above named Broker will be performing professional services for the Sponsoring Broker as an independent contractor and that the Broker will not be subject to the will and control of the Sponsoring Broker, nor will the Sponsoring Broker have the right to control either the method and the result of the services so performed. This agreement does not constitute a hiring by either party. It is the parties intention that the Broker be an Independent Contractor and not Sponsoring Broker’s employee, and in conformity therewith, that Broker, except as required by law, shall retain sole and absolute discretion and judgment in the manner and means of carrying out Broker’s selling and soliciting activities. The parties are hereto and shall remain independent contractors bound by the provisions of this agreement.

6. Further, it is agreed that the Sponsoring Broker will not be held responsible for the collection and payment of taxes or contributions of any nature on behalf of the Broker including, but not by way of limitation, contributions on behalf of the individual for Federal Social Security (F.I.C.A.) for Federal and State Unemployment Compensation, for State Workman’s Compensation Insurance, for State Real Estate Commission registration, for State, county and municipal occupational licensing or for any insurance, annuity, or retirement program in which the individual may participate as part of a collective group.

7. In performing these professional services to the public, the Broker will pay all his or her travel and entertainment expenses.

8. The usual and customary commissions shall be charged for any service performed hereunder, and the Sponsoring Broker shall advise the Broker of any special contract relating to any particular transaction that he/she undertakes to handle. When the Broker shall perform any service hereunder whereby a commission is earned, the said commission shall, when collected, be divided between the Sponsoring Broker and the Broker, in which division the Broker shall receive a proportionate share as set out in the rider attached headed “Commission Schedule” and the Sponsoring Broker shall receive the balance. In the event of special arrangements with any client of the Sponsoring Broker serviced by the Broker, whereas a special division of commission may apply, such rate of division is to be previously agreed upon the Sponsoring Broker and the Broker. In the event that two or more Brokers participate in such a service, or claim to have done so, the amount of the commission over that accruing to 2 the Sponsoring Broker shall be divided between the participating Brokers according to the agreement between them, which shall be agreed to in writing and witnessed by the Sales Manager of the office, or by arbitration. In no case shall the Sponsoring Broker be personally liable to the Brokers for any commissions, or shall the said Broker be personally liable to the said Sponsoring Broker for any commissions, but when the commissions have been collected from the party or parties for whom the service was performed, the said Sponsoring Broker, in the event such commissions are paid to it, shall hold the same in trust for said Brokers, to be divided according to the terms of their agreement, and in the event such commissions are paid to said Brokers, the said Brokers shall pay over to said Sponsoring Broker its proportionate share of such commissions according to the terms of this agreement.

9. It is agreed by the Broker that all listing leads and all leads to prospective buyers are the property of the Sponsoring Broker at all times, and must be returned to the Sponsoring Broker at the time of termination of the individual’s services, or upon demand by the Sponsoring Broker. Further, since the leads always remain the property of the Sponsoring Broker, the Broker, if terminated, will refrain from soliciting business from all principals involved in the property leads, and leads of prospective buyers, for a period of one year following the date of termination.

10. The Broker will hold the Sponsoring Broker harmless against all suits, claims, and obligations which the individual may incur in performing his services as an independent contractor, and the Broker shall have no right to bind, contract, or obligate the Sponsoring Broker in the performance of his/her services even though the individual, for purposes of sales promotion only, may be termed as “Broker” by the Sponsoring Broker. In the event any transaction, in which Broker is involved results in a dispute, Broker shall fully cooperate with the Sponsoring Broker. Broker agrees to indemnify Sponsoring Broker and hold Sponsoring Broker harmless from all claims, demands, and liabilities, including costs and attorney’s fees to which Sponsoring Broker is subjected by reason of any action by Broker taken or omitted pursuant to this agreement, not reimbursed by any insurance coverage carried by Sponsoring Broker. This indemnity shall be limited to the following: Broker’s violation of fiduciary responsibility to clients, fair housing and discriminatory violations, anti-trust violations, or Realtor board violations.

11. It is understood that the Broker will abide by all laws, ethical practices, and regulations promulgated by the State of Illinois and will adhere to the procedure and policies of the Sponsoring Broker that are currently in force and as they are changed from time to time, including attending all company meetings where new office policies and procedures are explained and discussed.

12. It is further understood and agreed that the performance of professional services by Broker, as herein set forth, may be terminated at any time without notice. The terminated Associate can share in the commission on transactions entered into prior to termination that result in closings after the associate leaves the company. The company, however, will charge a follow-up fee of 20% of the agent’s commission with the Sponsoring Broker.

3 It is further agreed that said Broker agrees to fulfill, to the best of his or her ability, the following terms and conditions:

A) Broker agrees to receive his or her CRS (Certified Residential Specialist), GRI (Graduate of the Real Estate Institute), and ABR (Accredited Buyers Representative) designations within 18 months of the date of this Agreement.

Date: ______Broker:

______

Address: ______

______

Accepted by: Century 21 S.G.R., Inc., Sponsoring Broker

______

By: ______Century 21 S.G.R., Inc., Managing Broker

Performance-Based Commission Agreement

Net Earnings to Agent In fiscal year of execution & each subsequent fiscal year Split $0-$15,000 50% $15,001-$30,000 60% $30,001-$45,000 70% $45,001-$75,000 75% $75,001+ 80%

All listings are the property of the firm. A new designated agent will be assigned to a listing upon the resignation or termination of the previous listing agent. A 25% referral fee will be paid to the departed agent for any listing procured by said salesperson which closes. Concerning a pending transaction, a 20% follow-up fee will be charged against said agent’s split upon close. All closes will incur an 8% franchise fee and a $ Preferred Client Club payment.

By signing below, the Sales Associate affirms his or her understanding of the payment of commission protocol and the commission schedule and agrees to both.

______Managing Broker Date: Sales Associate Date: Century 21 S.G.R., Inc. Century 21 S.G.R., Inc.

CHAPTER SIX: BROKERAGE RELATIONSHIP POLICIES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 27 AGENCY DISCLOSURE POLICY

Century 21 S.G.R., Inc., maintains a policy promoting discussion of agency relationships at the first reasonable opportunity with a customer or a client. Each agent is required to attend training and education on agency relationships and disclosure within the Company training program.

Illinois law requires a licensee to disclose to a customer the fact that you are not acting as their agent. Written disclosure must be given to a customer, any person who has not entered into an agreement to be represented, that you are not acting as their agent. This includes prospective sellers, buyers, landlords and tenants. The disclosure (Notice of No Agency) must be given to the person at a time intended to prevent the disclosure of confidential information but, in any event, no later than the preparation of an offer to purchase or lease.

The Company recommends that disclosure be made as follows:

1. If you are acting as a seller’s agent then written disclosure must be made at the time the prospective buyer begins to disclose personal or financial information to the licensee. Written disclosure must be made no later than the beginning of the preparation of an offer to purchase. Use the form entitled Notice of No Agency Relationship. 2. If you are acting as a buyer’s agent then oral disclosure should be given to the seller no later than the time of the first showing. Written disclosure must be given to the seller no later than the presentation of an offer to purchase. Use the form entitled Notice of No Agency Relationship.

These disclosures are required only if you are representing a buyer or seller and working with a prospective buyer or seller who is unrepresented.

In light of the increasing emphasis in the industry on agency relationships, Century 21 S.G.R.Inc., prefers and urges that each agent discuss agency relationships with customers and clients at the earliest possible time in the relationship to avoid later misunderstandings. All agents must disclose not later than the time periods required by the License Law and the rules promulgated thereunder.

In cases of potential dual agency, remember that in order to act as a dual agent, you must obtain the signatures of the sellers and prospective buyers on IAR’s Consent to Dual Agency and IAR’s Confirmation of Consent to Dual Agency. Century21SGR also mandates that the parties initial the Confirmation of Consent to Dual Agency when the Multi-Board 5.0 Real estate Sales contract is used.. All dual agency form signatures must be obtained before the execution of a contract.

(NOTE: The Company has all the necessary disclosure forms in its offices or you may obtain them on Chicagorealtor.com or the Illinois Association of Realtors® web site.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 28 It is the policy of Century 21 S.G.R., Inc that any agent working in the following circumstances MUST only act as a buyer's agent and may not act as a dual agent.

1. The agent is buying property for her or himself, or any entity in which he or she will have an ownership interest. In other words, Century 21 S.G.R., does not permit an option listing. 2. The agent is working with the agent's immediate family, that is, mother, father, brother, sister, children, any of their spouses or any business owned fully or partially by any of these persons.

STRONGLY RECOMMENDED BUYER AGENCY EVENTS

It is the policy of Century 21 S.G.R., Inc. that any agent working in any of the following circumstances is strongly urged to work only as a buyer's agent and not as a dual agent.

1. The agent is working with any relative by blood or marriage not in the agent's immediate family as defined above.

2. The agent is working with a close friend, business associate or long term past customer or client.

AGENCY AND CONFIDENTIALITY

One of the most important statutory duties of an agent is to maintain the confidentiality of the client, whether buyer or seller. The Illinois agency statute defines confidential information. It includes information made confidential by written instruction from the client and information made confidential by statute. The statute notes that an agent should treat as confidential any information provided by the client that may reasonably be expected to have a negative impact on the client’s real estate activity. Agents should pay particular attention not to make unauthorized or offhand comments about a client's situation or a client's property in a way which could be considered a violation of the duty of confidentiality. In particular, four areas are considered of particular importance. They are:

1. The lowest price a seller is willing to accept. 2. The highest price a buyer is willing to pay. 3. The motivation of either party to enter into the transaction, i.e. job change. 4. Previous offers and counteroffers of either party.

In cases of potential dual agency, remember that in order to act as a dual agent, you must obtain the signatures of the sellers and prospective buyers on the Consent to Dual Agency form before beginning to act as a dual agent, and the purchasers and sellers must initial the confirmation to dual agency section on the purchase contract section no later then the contract signing. If disclosed dual agency is offered, it is particularly important for the agent to realize that she/he must hold confidential the information of both buyer and seller, regardless of which party the particular agent is working with at that time.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 29 (NOTE: If disclosed dual agency is offered, confidentiality provisions for office procedures must be instituted. The following is one example of some areas of procedures to adopt.)

In offering disclosed dual agency, the Company and all of its associates must be sensitive to confidential information within the office and among the associates of the Company. The following procedures and policies are intended to protect the confidentiality of the Company’s clients.

1. Associates should not discuss confidential information of the client between or among themselves. 2. Comments at sales meetings should not reveal confidential information of the client without the client’s permission. 3. Office files of listings and pending sales are confidential and may not be accessed except by authorized staff and the particular agent involved in the listing or transaction. 4. Fax transmissions are confidential. Office staff will place faxes in envelopes or fold them so as not to reveal contents to persons other than to whom the fax is addressed. 5. Telephone messages with confidential information will be distributed in an envelope or be folded to protect the confidential information. 6. Direct clients to send all e-mail communications directly to the e-mail address of their designated agent. 7. Contracts, offers, counteroffers or other transactional documents will be delivered to the person addressed in envelopes. Persons other than the addressee are not authorized to open any such envelope.

Please refer to the attachments to the policy manual which refer to "Buyer Agency Do's and Don'ts", and "Disclosed Dual Agency Do's and Don'ts."

| Century21 S.G.R. | Office Policy Manual 2014 | Page 30

FORMS & SAMPLES

 DISCLOSURE AND CONSENT TO DUAL AGENCY FORM  CONFIRMATION OF CONSENT TO DUAL AGENCY FORM  NOTICE OF NO AGENCY RELATIONSHIP FORM

| Century21 S.G.R. | Office Policy Manual 2014 | Page 31 ILLINOIS ASSOCIATION OF REALTORS® DISCLOSURE AND CONSENT TO DUAL AGENCY (DESIGNATED AGENCY)

NOTE TO CONSUMER: THIS DOCUMENT SERVES THREE PURPOSES. FIRST, IT DISCLOSES THAT A REAL ESTATE LICENSEE MAY POTENTIALLY ACT AS A DUAL AGENT, THAT IS, REPRESENT MORE THAN ONE PARTY TO THE TRANSACTION. SECOND, THIS DOCUMENT EXPLAINS THE CONCEPT OF DUAL AGENCY. THIRD, THIS DOCUMENT SEEKS YOUR CONSENT TO ALLOW THE REAL ESTATE LICENSEE TO ACT AS A DUAL AGENT. A LICENSEE MAY LEGALLY ACT AS A DUAL AGENT ONLY WITH YOUR CONSENT. BY CHOOSING TO SIGN THIS DOCUMENT, YOU ARE CONSENTING TO DUAL AGENCY REPRESENTATION.

The undersigned ______, (“Licensee”), (insert name(s) of Licensee undertaking dual representation) may undertake a dual representation (represent both the seller or landlord and the buyer or tenant) for the sale or lease of property. The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing this document please read the following:

Representing more than one party to a transaction presents a conflict of interest since both clients may rely upon Licensee's advice and the client's respective interests may be adverse to each other. Licensee will undertake this representation only with the written consent of ALL clients in the transaction.

Any agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their own best interests and on their own behalf. You acknowledge that Licensee has explained the implications of dual representation, including the risks involved, and understand that you have been advised to seek independent advice from your advisors or attorneys before signing any documents in this transaction.

WHAT A LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT

1. Treat all clients honestly. 2. Provide information about the property to the buyer or tenant. 3. Disclose all latent material defects in the property that are known to the Licensee. 4. Disclose financial qualification of the buyer or tenant to the seller or landlord. 5. Explain real estate terms. 6. Help the buyer or tenant to arrange for property inspections. 7. Explain closing costs and procedures. 8. Help the buyer compare financing alternatives. 9. Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer.

WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT

1. Confidential information that Licensee may know about a client, without that client's permission. 2. The price or terms the seller or landlord will take other than the listing price without permission of the seller or landlord. 3. The price or terms the buyer or tenant is willing to pay without permission of the buyer or tenant. 4. A recommended or suggested price or terms the buyer or tenant should offer. 5. A recommended or suggested price or terms the seller or landlord should counter with or accept.

If either client is uncomfortable with this disclosure and dual representation, please let Licensee know. You are not required to sign this document unless you want to allow the Licensee to proceed as a Dual Agent in this transaction.

By signing below, you acknowledge that you have read and understand this form and voluntarily consent to the Licensee acting as a Dual Agent (that is, to represent BOTH the seller or landlord and the buyer or tenant) should that become necessary.

CLIENT:______CLIENT:______

Date:______Date:______

Document presented on ______, 20____ LICENSEE:______By: ______(Broker/Licensee Initials) Date:______

FORM 335 (6/14/13) COPYRIGHT ILLINOIS ASSOCIATION OF REALTORS® 1/1

ILLINOIS ASSOCIATION OF REALTORS® CONFIRMATION OF CONSENT TO DUAL AGENCY

The undersigned confirm that they have previously consented to______

______, ("Licensee"), acting as a Dual Agent (insert Licensee's name(s)) in providing brokerage services on their behalf and specifically consent to Licensee acting as a Dual Agent in regard to the transaction for the property located at ______. (insert address)

Signature of client(s): ______Date:______

______Date:______

FORM 336 (6/19/13) COPYRIGHT ILLINOIS ASSOCIATION OF REALTORS® 1/1

ILLINOIS ASSOCIATION OF REALTORS® NOTICE OF NO AGENCY RELATIONSHIP

Name of Licensee: ______

Name of Sponsoring Brokerage Company______

Property Address______

 NOTICE OF NO AGENCY RELATIONSHIP (Check here if you represent either seller or buyer)

Thank you for giving Licensee the opportunity to (Insert description of work, i.e. showing property of a FSBO)

______in regard to the above mentioned property.

Licensee’s Sponsoring Broker has previously entered into an agreement with a client to provide certain real estate brokerage services through Licensee who acts as that client's designated agent. As a result, Licensee will not be acting as your agent.

THIS NOTICE OF NO AGENCY IS BEING PROVIDED AS REQUIRED BY STATE LAW.

______Date______Licensee’s Signature

______Print Customer’s Name (OPTIONAL)

______Date______Customer Signature (OPTIONAL)

______Print Customer’s Name (OPTIONAL)

______Date______Customer Signature (OPTIONAL)

FORM 350 (6/14/13) COPYRIGHT ILLINOIS ASSOCIATION OF REALTORS® 1/1

CHAPTER SEVEN: LISTING PROCEDURES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 32 LISTING PROCEDURES

Century 21 S.G.R., Inc. accepts listings and seeks to build an inventory of available merchandise for sale to buyers of homes and investment real estate. It offers the merchandise directly to the public and by cooperating with other licensed agents.

Listings not only represent "the merchandise on the shelf" but also present a significant area of risk. Traditionally many of the claims filed against real estate agents involve claims of misrepresentation or fraud. It is at the listing level that many of these claims originate. As a listing company, it is imperative that Century 21 S.G.R., Inc. develop clear policies to reduce the risk of later claims from oversights and exposures at the time of listing. The following policies apply to all listings taken by Century 21 S.G.R., Inc.

LISTING PHOTOGRAPHY

a. It’s the company’s belief that professional photography is an absolute imperative for all listings. Nothing else so readily defines the professionalism of an agent than the quality of photos he choose to display to the world through the MLS, 856 websites, and a variety of social media outlets. The company cannot permit an agent to diminish his own brand, that of his fellow agents, and the company by using less than professional photos even for the lowest priced listing or rental. b. If an agent feels that it’s not economically feasible to use professional photos on a listing because of the low commission it will generate, the agent should not take the listing. Professional photography is defined as (1) photos taken by a professional photographer, or (2) photos taken by an agent with a professional quality camera who has formal photographic training. c. Many companies in Chicago have initiated a mandatory marketing fee ranging from $450-$550 per listing to guarantee that all listings receive minimum marketing services, one of which is professional photography. Century21 S.G.R. is trying to avoid imposing this economic crucible upon its associates and importunes all to use only professional quality photos.

No listing will be input unless a minimum of 9 professional quality photos are presented with the listing input sheet. Associates are encouraged to display many more pictures with a virtual tour. The MLS will accept up to 16 photos; Realtor.com 25 and Century21.com 25.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 33 MINIMAL MARKETING REQUIREMENTS FOR A LISTING 1. Professional photography as defined in the policy manual. 2. Comprehensive, accurate listing information. No cloning please! 3. Well-written narrative. 4. Clear showing instructions. 5. Pristine “For Sale” sign with your name, number, email address, and website stated. No agent can ever put up a “For Sale” sign on any property by himself or herself. All signs must be ordered through and installed by a company approved vendor without exception. Any agent installing a sign will be terminated by the firm immediately. 6. MLS input within 72 hours of contract execution by seller and managing broker, or listing exemption form (see attached) must be in file signed by seller. 7. True copy of listing returned to seller within 24 hours of execution by managing broker of firm. Only the managing broker is permitted to sign a listing. 8. Check that listing has been accurately downloaded into all major websites in showcase format. All listings are displayed on 856 websites with 14 sites accounting for over 90% of all hits. 9. Check that the flyer represents the listing properly. 10. Send out at least one email blast per month of the listing. 11. Do personal showings whenever practical. A lockbox cannot talk or sell a property; that is your job! 12. Return Lead Router inquiries within 5 minutes.

OPTIONAL MARKETING FEATURES

a. Platinum Package b. Gold Package c. Silver Package d. Standard Pacakge

TYPES OF LISTINGS

In accord with the REALTOR® Code of Ethics, Century 21 S.G.R., Inc urges the exclusive listing of property, unless it is contrary to the best interests of the owner. Open listings may be accepted only with consent of a manager or broker of the company. Net listings are not accepted; they violate clear, ethical standards. A net listing is one in which the owner agrees to let the agent keep any sale proceeds over a "net" price the owner wants for the property.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 34 COMMISSION POLICIES a. Rates and prices charged for services to the public:

 Charges to sellers for listing: minimum 6%  Charges to buyers for representation: up to half of the total commission (max 3%)  Charges to owners for leasing: 1 month’s rent for the first year.  Charges to clients for consulting: varies depending on the services provided.  Charges for any other services rendered – varies.

b. Compensation offered to buyer’s agents: normally ½ of listing side commission minus $325. c. Compensation offered to the company’s licensees: agent’s commission split with company minus 8% franchise fee taken from the top which normally results in an effective franchise fee of 4% from agent and 4% from the company on a 50/50 commission basis.

If an agent earns a bonus on a sale or for consulting work the money earned will be split with the company on the same commission basis that the agent has with the firm.

OTHER LISTING TERMS

Exclusive Right to Sell Agreement

The listing must be or a minimum of 180 days without exception.

DISCLOSURE OF ADVERSE MATERIAL FACTS

Illinois statutes require the disclosure to any customer of all latent material adverse facts pertaining to the physical condition of the property that are actually known or which should have been known by the licensee. Latent adverse material facts are defined as facts actually known by the licensee related to the physical condition of the property not reasonably ascertainable by a diligent inspection of the property by the customer.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 35 RESIDENTIAL REAL PROPERTY DISCLOSURE FORMS

The Residential Real Property Disclosure Form is a detailed statement by the seller of his/her knowledge of the condition and features of the property. Century 21 S.G.R., Inc. has a policy of urging sellers to complete the form and to provide them to buyers in compliance with the state statute. An agent should provide a blank disclosure form to the seller and request the disclosure form be completed on every listing unless the property is exempt from disclosure under state law. It is in the best interest of the seller to complete a disclosure form because it can avoid future misunderstandings with a buyer as to what the seller's knowledge of the condition of the property was at time of listing and because it is required by State law.

In addition, it is a valuable risk reduction tool for Century 21 S.G.R., Inc. and assists the Company in complying with its obligations to disclose adverse material facts. By the seller making accurate, factual statements as to his/her knowledge of the property, later controversies as to "who said what" can be minimized.

A listing agent should be careful to make sure that the seller and not the agent complete the Disclosure form and keep it current. If the information becomes inaccurate because the property's condition has changed, a seller could have liability for allowing known inaccurate information to be given to buyers. Once the form is complete the agent needs to make sure that it is delivered to prospective buyers before they prepare an offer to purchase.

Some sellers may refuse to sign a Disclosure form. In Illinois, there is a state law which requires a seller to execute such a statement unless the property or the transaction is exempt. If a seller declines to complete a disclosure form he/she should be referred to his/her own attorney to determine if the transaction or the property is exempt from disclosure. Century 21 S.G.R., Inc WILL NOT accept a listing for which a seller refuses to complete a disclosure form unless the property or transaction is exempt.

In completing the disclosure form, the seller her/himself MUST fill in the form. A Century 21 S.G.R., Inc. agent MAY NOT complete the form on behalf of a seller. The responsibility to complete the form under Illinois law is on the seller and not on the agent.

In general, the agent may rely on the statements of the seller. Article 15 of the License Law provides that the licensee owes no duty to conduct an independent inspection of the property for the benefit of the customer and owes no duty to independently verify the accuracy of any statement made by the client.

However, an agent may not ignore any suspect items on the disclosure form just because the seller completed it. If an agent, in his/her reasonable judgment and expertise, suspects that a statement is not accurate, the agent should seek further information from the seller. An example might be a seller who states that there has been no water in a basement in which there are obvious water stains and cracks. An agent’s best course is to seek further information from the seller as to the exact nature of their statements and if the seller persists in inaccurate statements then either refuse to take the listing or withdraw as the listing agent. If an agent needs assistance with this type of problem they should contact the managing broker.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 36 LEAD BASED PAINT

Particular note should be paid to lead-based paint disclosures. Current FHA regulations require that a special lead-based paint disclosure form be signed by all parties to a contract with FHA financing BEFORE entering into the contract if the transaction involves a property built prior to 1978. Also, a federal law which took effect late in 1996 requires certain disclosures on properties built prior to 1978 about the hazards of lead-based paint and requires that the buyer be given the opportunity for inspections for lead-based paint in the sale contract. Under lead-based paint regulations, agents do have a duty to make sure the seller completes a disclosure form and provides a pamphlet.

RADON AWARENESS ACT

The Illinois Radon Awareness Act became effective on January 1, 2008. Agents of Century 21 S.G.R., Inc. should have a general knowledge about the existence of the Radon Awareness Act and that the provisions impose duties on sellers of real property. In short, before a buyer becomes bound on a contract to purchase real estate the seller is required to provide a pamphlet entitled “Radon Testing Guidelines for Real Estate Transactions” and the Illinois Disclosure of Information on Radon Hazards. The language of the latter is set forth by statute. The pamphlet is provided by the Illinois Emergency Management Agency Division of Nuclear Safety and can be found on that agency’s Web site, http://www.radon.illinois.gov.

Nothing in the Act requires a seller to test for radon or to engage in “mitigation activities.” The Act excludes certain types of transactions, which are summarized as follows: transfers made pursuant to court order, transfers resulting from foreclosure, transfers by fiduciaries of estates, transfers among co-owners, transfers pursuant to estate or interstate succession, transfers made by relocation companies (if the relocation company has the required documents from the original seller) and transfers to or from a governmental entity. Agents need to be aware of this required disclosure so they can inform their seller clients.

ACCURACY OF LISTING INFORMATION

Several "traps" of liability exist in taking a listing. These are covered below. Each Century 21 S.G.R., Inc. agent should take careful note of these hazard areas and be particularly diligent in handling these issues.

a. ROOM COUNTS: Century 21 S.G.R., Inc. agents must be careful to accurately represent the number of rooms, bedrooms and bathrooms in a property. Generally, questions of whether an area constitutes a room, bedroom or bathroom are resolved by determining whether an appraiser would count the area as such. For example, basement rooms which are below grade are not generally considered rooms, bedrooms or bathrooms for appraisal purposes. Another example is that a room normally must have a closet to be considered a bedroom. Also, "walk-through" rooms are not usually considered separate bedrooms. These ambiguous areas can be denoted by a symbol such as a "+" sign after the room count (e.g. 8+ rooms, 4+ bedrooms) or highlighted in remarks for the property or other descriptive information.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 37 b. ROOM SIZES: The agent should personally measure each room. DO NOT take room sizes from a former listing company's form. Be cautious about taking room sizes from plans. There may have been construction changes not reflected on the plans. Measure room sizes to feet and inches. (NOTE: Many MLS systems do not allow input of room sizes to feet and inches. In such case, round inches to the nearest foot, e.g., 7 feet 7 inches rounds to 8 feet but 7 feet 5 inches rounds to 7 feet.) If you have not measured yourself or will not measure, be sure to cite the source of your information so it is clear that it did not come from you. c. EXCLUSIONS/INCLUSIONS: An agent should pay particular attention to inclusions and exclusions in the sale of the property and verify the seller's intention. For example, if an owner checks off that the master bedroom draperies will not be sold with the house, the agent should verify that this is the seller's intent and then make clear in any promotional material mentioning draperies that the master bedroom draperies are excluded. Also, it is very important to make sure the exclusion is expressly specified in the contract. The listing information sheet is not usually incorporated into the terms of the contract. Thus, an agent should not rely on the listing information sheet to control the contract but must make sure that the exact understandings of the parties are reflected in the sale contract. Also, it is a good idea to suggest that seller remove an excluded item before marketing the property for sale if possible. d. LOT SIZE: Lot size and acreage should only be determined from an accurate survey. The agent should NOT attempt to measure lot size on her/his own. e. TAXES: Taxes should be determined from county tax records or the owner's tax bill. The agent should not rely on the statements of the owner as to tax amounts. If there is a question regarding reassessment between time of contract and time of closing, refer the client to their attorney to negotiate contract language when necessary. f. MODERNIZATION INFORMATION: Often, good selling features about a property are the updates or upgrades made by the owner. In order to accurately advertise these items, Century 21 S.G.R., Inc requires that the owner verify any information given to us before it can be used in any promotional material on the listing.

Items such as "new" roof, "new" air conditioner, "new" furnace, "new" bathroom, "new" kitchen, etc. are misnomers because of the difficulty in defining what "new" means. Substantiation of the information means the owner must supply Century 21 S.G.R., Inc. with receipts, canceled checks or other proof of payment of upgraded or rehabbed items. Once provided, then Century 21 S.G.R., Inc. will accurately advertise and promote these good selling features with language like "New roof, 2000","New furnace, 2003","Kitchen remodeled, 2006".

If it is not possible to substantiate modernized features, they can be advertised or promoted as "Newer" or "Recent", as in "Newer furnace" or "Recently remodeled bathroom".

| Century21 S.G.R. | Office Policy Manual 2014 | Page 38 SIGNATURES

Illinois requires written listing agreements to be signed by "the parties." In addition, Century 21 S.G.R., Inc desires that listing agreements be enforceable in every possible situation to ensure that the company and agent will be paid under the terms of the listing agreement. Because of these factors, agents must secure listing agreements with the signatures of all sellers or the duly authorized representative of all sellers before the listing will be promoted or advertised in any way. Agents should be particularly aware in the several situations below.

a. SPOUSAL SIGNATURES: A spouse must ALWAYS sign a listing agreement unless certain conditions exist, as follows:

(1) A waiver of marital rights given by the non-signing spouse exists and a copy is provided to Century 21 S.G.R., Inc. (2) A quitclaim deed made to the signing spouse has been executed and recorded by the spouse not signing and a copy is provided to Century 21 S.G.R., Inc. (3) A prenuptial agreement waiving the non-signing spouse's rights exists, a copy of the prenuptial agreement has been given to Century 21 S.G.R., Inc, and legal counsel for Century 21 S.G.R., Inc. has consulted with a title company to determine the validity of the prenuptial agreement. (4) A court order provides otherwise.

Most often, these questions come up when the property is titled only in the "selling" spouse's name and the "non-selling" spouse claims that he/she has no interest in the property. Typical situations are a widowed person who has remarried or a divorced person who has remarried. The spouse not on the title ALWAYS has a potential homestead interest under Illinois law and MUST sign the listing agreement unless one of the four exceptions noted above exists. b. PROPERTY IN ESTATE: When property is in an estate, ALL heirs AND spouses must sign. If a Personal Representative (Executor or Administrator) has been named, it is possible that the Personal Representative has authority to sell the property. The agent must secure a copy of the part of the will or court order which empowers the Personal Representative to sell property. The power of sale granted the Personal Representative by a will may not be acceptable to a title company until the time to file a will contest has expired, which is six months after the first publication of notice of Letters Testamentary being issued. Management or legal counsel for Century 21 S.G.R., Inc. will consult with a title company to determine if the power to sell in the will is acceptable. c. TRUSTEES: If a property is held by a trust, the trustee will normally be empowered to sell. However, the agent must secure a copy of the part of the trust which empowers the trustee to sell because some trusts require the signatures of more than one trustee to sell as in the case of an individual and corporate trustee (bank). The trustee's spouse does not sign the listing agreement because the trustee is acting in a representative capacity.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 39 d. SELLER INCAPACITATED: If a seller is not mentally competent to sell, and no acceptable Power-of- Attorney exists, a guardian must be appointed by the court and the guardian must obtain a court order to sell the property. Until such time, the property cannot be sold even if a child, sister, niece, nephew, etc. is also on the title. Also, if a property is jointly owned in this fashion, the spouse of the "second signer" (child, sister, niece, nephew, etc.) must also sign the listing contract. It is possible that a properly drawn Durable Power of Attorney may provide a means to sell this type of property. However, before relying on the Durable Power of Attorney, a title company should be consulted to determine whether the company will insure the title based on the existing Durable Power of Attorney. Also, refer to the paragraph on Powers of Attorney, below. e. DIVORCES: A person is NOT legally divorced until a court so orders. A person "in the process of divorce" cannot sign the listing agreement alone. The spouse must also sign, regardless of whether the spouse is living on the premises or the couple has a "legal separation." Once divorced, the person may sign alone. However, if the county records continue to show the property in both names, the agent must secure a copy of that part of the divorce decree which awards the property to the signing spouse for Century 21 S.G.R., Inc. files. f. POWERS-OF-ATTORNEY: A Power-of-Attorney is acceptable for signature on a listing contract. However, not all powers-of-attorney authorize the sale of real estate. A copy of a recordable Power-of-Attorney authorizing the sale of real estate must be secured for the files of Century 21 S.G.R., Inc. Illinois law requires a Power-of-Attorney for the sale of real estate to be recorded.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 40 SELLER NET PROCEEDS CALCULATIONS

It is the policy of Century 21 S.G.R.., Inc. to calculate estimated net proceeds for sellers as often as appropriate. The first estimate should be given on the listing call or as soon as possible after listing the property. Even though some information may not be available, such as exact loan balances or prepayment penalties, the agent should use all existing information to prepare as accurate an estimate as possible and note any missing information.

When information becomes available, estimated net proceeds should be recalculated. This is particularly appropriate when an offer is presented and when each new offer or counteroffer is received.

Many reasons exist for using seller net calculations. First, it is an important service to a client. Secondly, it is important for Century 21 S.G.R., Inc. to know whether it is likely that there are sufficient proceeds to pay off the indebtedness on the property and the real estate commission. Finally, the company must know whether the seller of the property can deliver marketable title. If the indebtedness exceeds the listed price, immediate discussions must occur with the seller and the lenders to determine whether the property can be sold with clear title given the level of indebtedness.

Please see your managing broker for a format to use in determining estimated seller net proceeds and if you believe you have a short sale listing.

LOCK BOX PROCEDURES

Century 21 S.G.R., Inc, as part of the local Association of REALTORS® common lock box system, permits, but does not encourage the use of lock boxes on listings. Specific permission from the owner must be obtained on each listing before installing a lock box. Forms for this purpose are in each office.

OPEN HOUSE PROCEDURES

The "how-to" of holding open houses, etc., is covered elsewhere in Century 21 S.G.R., Inc. training programs and manuals. However, Century 21 S.G.R., Inc maintains a policy that owners be informed of their responsibilities in consenting to open houses. Agents must strongly recommend to owners that they take common sense precautions with any valuables in the house during the time of the open house. This includes removal of all jewelry boxes, collectibles of value, (sentimental or dollar value), small audio or video equipment or other items which may be of value. Owners should also be informed that their homeowner's insurance company is the responsible party for any losses on an open house.

As in all other areas, an agent may not act carelessly or recklessly. If for no other reason, an agent must be diligent in conducting an open house to maintain good business relations and rapport with the owner.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 41 INTERNAL VERIFICATION PROCEDURES

Century 21 S.G.R., Inc. maintains a system of checking and verifying both listing agreements and documents and sale contracts and documents for accuracy, enforceability and compliance with the License Law and the rules issued pursuant to the License Law. Each agent is expected to cooperate fully and promptly with any requests for verification, further information or correction of any oversights in the documents.

For other related policies, see the section on Risk Reduction Policies.

SELLER SERVICE PLEDGE

Associates will explain the use of the Seller Service Pledge on listings. This is required by the franchise agreement with corporate.

BUYER SERVICE PLEDGE

Associates will explain the use of the Buyer’s Service Pledge. This is also required by the Century 21 Corporate Agreement.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 42 CENTURY 21® SELLER SERVICE PLEDGE®

¨ Real Estate for Your WorldSM

As an independently owned and operated CENTURY 21 office, we are dedicated to providing you with service that is professional, courteous and responsive in helping you market your property. To fulfill this commitment, we agree to provide you with the following services: 1. Dedicate myself to making the process of selling your home as easy and as successful as possible. 2. Respect you, your needs and be honest and forthright. 3. Hold your best interests in the highest regard throughout the process. 4. Value and respect your time, being as efficient and effective as possible. 5. Understand your needs and respond quickly. 6. Use my base of experience, knowledge, tools and the most up-to-date training to best serve you. 7. Provide regular progress reports throughout the process and discuss with you comments received about your property. 8. Explain each step of the process and act as a guide to help you make the most informed decisions. 9. Make recommendations to enhance the marketability of your property. 10. Use a written Competitive Market Analysis and local market information to help you set the right listing price to sell your home and get the value you deserve. 11. Review various financing alternatives and assist you in determining those which best enhance the saleability of your home. 12. Develop, present and agree upon a Customized Marketing Plan that will detail specific promotional efforts to help best market your property. 13. Place the internationally recognized CENTURY 21 yard sign on your property, with your permission and subject to local ordinances. 14. Provide worldwide exposure for your property on the Internet, including posting your property on Century21.com, a site which receives millions of visitors each month.* 15. Explain local real estate procedures and regulations. 16. Show your property to pre-qualified buyers. 17. Utilize the CENTURY 21 System of thousands of offices to expose your property to potential buyers referred to my office. 18. Utilize the vast and powerful resources of the CENTURY 21 System to get you the results you deserve, including leveraging a Network of 6,600 offices and 109,000 agents worldwide. 19. Submit to you all written offers, assist with negotiations, and provide an estimate of your net sales proceeds, so you understand all implications prior to any acceptance. 20. Upon acceptance of an offer to you, pre-settlement (escrow) activities throughout the closing process will be monitored as permitted by law or local practice. 21 Assist you in finding your next home, or offer to refer you to another office in another location. 22 ______We appreciate your allowing us to help you with the marketing of your property. If at any time you have a question, concern, comment or suggestion, please contact: ______Phone ______

This CENTURY 21 Seller Service Pledge Certificate applies only to an exclusive right to sell agreement of not less than _____ days. If any terms or conditions contained herein are prohibited by local law, they shall be considered severed from this pledge and of no force or effect. In the event of any alleged breach under the terms of this 21 Point Seller Service Pledge Certificate, the seller (as a sole and exclusive remedy) may terminate the exclusive right to sell agreement, provided that our CENTURY 21 office is given ten days (10) written notice of the reason for termination and an opportunity to cure the default during the notice period. CENTURY 21 ______A Copy of this SELLER SERVICE PLEDGE® Certificate has been received. B y ______B y ______B y ______Owners ______Dated ______Property Address ______Phone______Email ______

© 2003 Century 21 Real Estate Corporation. An Equal Opportunity Company. Equal Housing Opportunity. ® licensed trademark to Century 21 Real Estate Corporation. Each Office Independently Owned and Operated. *2002 Web Trends Site Metrics Report.

Q25087-J Merrill Corporation Form # 10-1592 5/03 CENTURY 21® BUYER SERVICE PLEDGE®

¨ Real Estate for Your WorldSM

As an independently owned and operated CENTURY 21 office, we are dedicated to providing you with service that is professional, courteous and responsive in helping you find a property. To fulfill this commitment, we agree to provide you with the following services: 1. Dedicate myself to making the process of buying your next home as easy and as successful as possible. 2. Respect you, your needs and be honest and forthright. 3. Hold your best interests in the highest regard throughout the process. 4. Value and respect your time, being as efficient and effective as possible. 5. Understand your needs and respond quickly. 6. Consult with you to determine your particular real estate wants and needs. 7. Use my base of experience, knowledge, tools and the most up-to-date training to best serve you. 8. Explain each step of the process and act as a guide to help you make most informed decisions. 9. Disclose material facts known about the property and respond to questions concerning the property. 10. Help determine your purchasing power, while explaining alternative methods of purchasing and/or financing. 11. Provide an action plan for locating the right property, at the right price and terms, in an acceptable time frame. 12. To the best of my ability, continuously show you new properties that fit your needs. 13. Provide a Customized Home Search Plan for locating the right property for you, only showing you properties that will best meet your needs and in accordance with Fair Housing regulations and ethical real estate practices. 14. Use the most comprehensive database of listings in the area, to help you find the home that best meets your needs, whether that be the Multiple Listing Service and/or other methods. 15. Provide the resources of Century21.com that offers thousands of listings, allowing you to easily review homes that are right for you, access in-depth information on neighborhoods, and additional information.* 16. Use my knowledge and expertise to promote the most valuable purchase on your behalf. I will assist you in evaluating the market value of properties that are of interest to you and help you obtain the most advantageous price and terms. 17. Provide access to financing that meets your needs, at the lowest possible rates available to you. 18. Advise and assist you in completing your purchase agreement, and present your offer with integrity in a light most favorable to your needs. 19. Upon acceptance of an offer by you, pre-settlement (escrow) activities throughout the closing process will be monitored as permitted by law or local practice. 20. Offer to provide you with information regarding other professionals (e.g. attorneys, accountants, inspectors, contractors) that may assist you during and after your move. 21. Utilize the CENTURY 21 System of thousands of offices to provide you with the name of an office in the area of your new home, to assist you further. 22. ______We appreciate your allowing us to help you with your property purchase. If at any time you have a question, concern, comment or suggestion, please contact: ______Phone ______“NOTICE: As a prospective purchaser of real estate, you should be aware that cooperating (“selling”) brokers and sales associates can work for you as your agent, in which case they represent you and owe you the fiduciary duties of loyalty, confidentiality, disclosure, diligence and care; or with you as a subagent (unless prohibited by law) of the listing broker, in which case they represent the seller, and the fiduciary duties are owed to the seller; or with you as facilitators (as permitted by law) representing neither party to the transaction; or in such other brokerage relationship as may be permitted by law. In any case, as real estate licensees, we are at all times obligated to treat you honestly and fairly, and in most states (and provinces), inform you of our particular representation status. In the event we do not represent (work for) you in the transaction, should you feel it necessary or desirable, you can obtain representation from a lawyer or another real estate broker or both.” CAVEAT: DO NOT RELY ON THIS NOTICE AS DESCRIBING THE ACTUAL REPRESENTATION STATUS OF OUR OFFICE CONCERNING THE SERVICES TO BE PROVIDED TO YOU AS REFLECTED IN THIS PLEDGE CERTIFICATE. SPECIFICS OF OUR ACTUAL REPRESENTATION STATUS ARE SET FORTH IN A SEPARATE WRITTEN AGENCY DISCLOSURE. CENTURY 21 ______A Copy of this BUYER SERVICE PLEDGE® Certificate has been received. B y ______B y ______B y ______N a m e ______Dated ______Address ______Email ______© 2003 Century 21 Real Estate Corporation. An Equal Opportunity Company. Equal Housing Opportunity. ® licensed trademark to Century 21 Real Estate Corporation. Each Office Independently Owned and Operated. *2002 Web Trends Site Metrics Report.

Q25085-J Merrill Corporation Form # 10-1593 5/03

FORMS & SAMPLES

 LISTING, PENDING, AFTER CLOSING, CANCELATION, FAILED CHECKLIST  LEASE LISTING, LEASE CONTRACTS, AFTER RENTED CHECKLIST  RENTAL SELECTION CRITERIA  RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK FORM  RENTAL APPLICATION REQUIREMENT FORM  CENTURY21 SGR MARKETING PACKAGE  CENTURY21 SGR SELLERS NET SHEET FORM  MRED SELLERS NET SHEET FORM  LISTING PRESENTATION/ SELLING BROCHURE Download from “Century21SGR” website, under “Agent Toolbox”or copy following url on browser www.Century21SGR.com/agents/about-sgr/agent-toolbox/  EXCLUSIVE LISTING AGREEMENT Please make CERTAIN to use the “V.13.10”version revised listing contract only. It contains the company’s policy with respect to cancellations and a host of other issues. Do not use any other listing contract.  EXCLUSIVE LEASE LISTING AGREEMENT

| Century21 S.G.R. | Office Policy Manual 2014 | Page 43 PROPERTY ADDRESS:______

AGENT NAME: ______SIDE: ______

LISTING LISTING AGREEMENT - Century 21 SGR's Exclusive Listing Agreement only COMPLETED LISTING INPUT SHEET 4-PAGE RESIDENTIAL PROPERTY DISCLOSURE RADON DISCLOSURE (NOT REQUIRED IF PROPERTY IS ABOVE 2ND FLOOR) LEAD BASED PAINT DISCLOSURE (NOT REQUIRED IF PROPERTY IS BUILT IN OR AFTER 1978) MOLD DISCLOSURE (COMPANY POLICY - NOT MANDATED BY LAW) HEAT DISCLOSURE (IF PROPERTY IS IN CHICAGO) MANDATORY SELLER INFORMATION MINIMUM 9 PICTURES OF THE PROPERTY FOR SALE SIGN INSTALLATION ORDER FORM (All signs must be installed by a professional sign vendor with full liability coverage; no agent can install their own sign.) SHORT SALE FORM - EXCLUSIVE LISTING AGREEMENT (RIDER 20A)

PENDING SALES CONTRACT - FULLY EXECUTED BY SELLER & BUYER SHORT SALE FORM - PURCHASE & SALE CONTRACT (RIDER 20B) INITIAL EM RECEIVED - EARNEST MONEY ENVELOPE COMPLETELY FILLED OUT NEED TO BE SUBMITTED WITH THE SALES CONTRACT ASAP ADDITIONAL EM RECEIVED - SUBMIT TO ACCOUNTING DEPT. ASAP SELLING SIDE - NEED COPIES OF EM AND ADDITIONAL EM W9 RIDER PROPERTY DISCLOSURE FULLY EXECUTED BY SELLER & BUYER RADON DISCLOSURE FULLY EXECUTED BY SELLER & BUYER, & LISTING & SELLING AGENTS LEAD BASED PAINT DISCLOSURE FULLY EXECUTED BY SELLER & BUYER, & LISTING & SELLING AGENTS (NOT REQUIRED IF PROPERTY IS BUILT IN OR AFTER 1978) MOLD DISCLOSURE EXECUTED BY SELLER & BUYER. CENTURY 21 SGR'S NAME & THAT OF THE DESIGNATED AGENT ENTERED ON BLANK LINE OF PARAGRAPH 3. HEAT DISCLOSURE SIGNED BY BUYER & SELLER PROOF OF FUNDS FOR CASH DEAL BUYER'S ATTORNEY INFO. SELLER'S ATTORNEY INFO. BUYER AGREEMENT IF REPRESENTING THE BUYER - EITHER EXCLUSIVE BUYER/BROKER AGREEMENT OR NON-EXCLUSIVE AGREMENT MUST, BY LAW, BE IN THE FILE COMPLETED DEAL FOLDER SHEET - ALL FIELDS FILLED OUT COMMISSION AGREEMENT - IF COMMISSION HAS BEEN CHANGED FROM WHAT IS REPRESENTED ON LISTING AGREEMENT (IF REPRESENTING THE SELLER) OR MLS CO-BROKERAGE COOPERATING COMMISSION STATEMENT (IF REPRESENTING THE BUYER), COMMISSION REDUCTION AGREEMENT SIGNED BY ALL PARTIES, INCLUDING, & ESPECIALLY, THE MANAGING BROKER OF CENTURY 21 SGR, MUST BE IN THE FILE. IF YOU REDUCE COMMISSION BY YOURSELF WITHOUT MB APPROVAL, COMPANY SHALL DEDUCT FROM YOUR COMMISSION PART. MLS LISTING / STATUS CHANGE FORM ADD TO STATISTIC BOARD LOAN COMMITMENT IN FILE BEFORE CLOSING CLOSING NOTIFICATION SENT TO ACCOUNTING DEPARTMENT ASAP WHEN YOU KNOW THE DATE

AFTER CLOSING COMMISSION RECEIVED - MUST BRING TO THE OFFICE ASAP RESPA/HUD - BRING 2 COPIES CLOSING STATEMENT SIGNED BY SELLER, OR CO-OP BROKER STATEMENT (IF WE ARE THE SELLING SIDE) BUYER & SELLER NEW ADDRESSES, PHONE NUMBERS, & EMAILS SIGN REMOVAL FORM

CANCELLATIONS/FAILED CONTRACT CANCELLATION & RELEASE OF EARNEST MONEY, SIGNED BY SELLER, BUYER, & SELLING AND LISTING BROKERAGE FIRMS, AS REPRESENTED BY THEIR MANAGING BROKERS ALL CANCELLATIONS MUST BE APPROVED & SIGNED BY MANAGING BROKER ONLY. REASON FOR CANCELLATION WITH DOCUMENTS (ATTORNEY LETTERS/LOAN DENIAL) SIGNED MLS STATUS CHANGE FOR LISTING SIDE SIGN REMOVAL FORM

3/1/2014 PROPERTY ADDRESS:______

AGENT NAME: ______SIDE: ______

LEASE LISTING LISTING AGREEMENT - TENANT SELECTION STANDARDS COMPLETED LISTING INPUT SHEET RADON DISCLOSURE LEAD BASED PAINT DISCLOSURE MANDATORY SELLER INFORMATION MINIMUM 9 PICTURES OF THE PROPERTY

LEASE CONTRACTS APPLICATION COMPLETED CREDIT REPORT ORDERED, COMPLETED, & A COPY IN THE FILE PROPER LEASE AGREEMENT USED. IF APARTMENT RENTAL, USE CHICAGO APARTMENT LEASE. IF CONDO, USE CONDO LEASE. MAKE SURE THAT THE CHICAGO APARTMENT ORDINANCE IS ATTACHED IF THE PROPERTY IS IN CHICAGO. 1ST MONTH'S RENT CHECK MADE OUT TO CENTURY 21 SGR TO COVER LEASE COMMISSION SECURITY DEPOSIT MADE OUT TO LANDLORD FULLY-EXECUTED & LEGIBLE COPY OF LEASE IN FILE EXCLUSIVE OR NON-EXCLUSIVE BUYER (TENANT) BROKER AGENCY CONTRACT IN FILE COPY OF 1ST MONTH RENTAL AND SECURITY DEPOSIT CHECKS IN THE FILE

AFTER RENTED COMMISSION RECEIVED - MUST BRING TO THE OFFICE ASAP

3/1/2014

RENTAL APPLICATION AND CRIMINAL BACKGROUND CHECK

Each applicant must complete a rental application package. Applicants and occupants may be required to submit supplemental documents as requested.

An "applicant" is any household member who will be contributing to the monthly rental payment for the apartment.

An "occupant" is any household member who will not be contributing to the monthly rental payment for the apartment.

RENTAL SELECTION CRITERIA

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 1

Rental Address: Date of Application:

Rental Amount $ ______Requested Lease Term: ______Requested Move-In Date: ______

PLEASE PRINT AND ANSWER ALL QUESTIONS 1. APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

CURRENT LANDLORD/MORTGAGEE INFORMATION Own Rent Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 2

JOINT APPLICATION? YES NO ______IF 'NO', PLEASE PROCEED TO #3 (OTHER OCCUPANTS)

2. JOINT APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

IF CURRENT AND/OR PREVIOUS LANDLORD/MORTGAGE INFORMATION IS THE SAME FOR JOINT APPLICANT - PLEASE PROCEED TO EMPLOYMENT SECTION

CURRENT LANDLORD/MORTGAGEE INFORMATION ______Own Rent _____ Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Full Name Relationship Date of Birth Remarks

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 3

4. AUTOMOBILES How Many Autos? Applicant #1: Driver's Lic. # VERIFIED Applicant #2: Driver's Lic. # MAKE MODEL YEAR COLOR LIC. PLATE # STATE

5. OTHER INCOME SOURCE AMOUNT PHONE # REFERENCE VERIFIED

6. FINANCIAL REFERENCES NAME ADDRESS ACCOUNT NUMBER(S)

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

7. PERSONAL REFERENCES - Please provide the names of two individuals not related to applicant. NAME ADDRESS PHONE #

8. EMERGENCY INFORMATION

Member of your immediate family ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

Another emergency contact ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

9. LEASING AGENT INFORMATION

Print Name: Brokerage:

Phone #: Fax #: E-Mail:

Have you ever been convicted of a crime? If yes, please provide a letter of explanation. YES / NO

Have you ever been evicted? If yes, please provide a letter of explanation. YES / NO

Have you ever filed bankruptcy? If yes, please provide a letter of explanation. YES / NO Have you had credit under any other name within the last five years? YES / NO What is the name? ______

How were you referred to us? ______

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 4

10. PETS INFORMATION Type of Pet # Pets Pet Weight (lb) 1.______2.______

Applicant #1: Print Name Signature Date

Applicant #2: Print Name Signature Date

The above signature(s) are allowing a 'social security trace/criminal only' report be completed on the following occupants:

Name: ______Social Security # ______DOB ______

CURRENT ADDRESS FOR ABOVE NAMES

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 5

INCOME AND EXPENSE SUMMARY

Rental Address:

Applicant(s):

Monthly Rent $

INCOME Monthly Income Source of Income: Applicant #1 Wages: $ Applicant #2 Wages: $ Other Income: $ Other Income: $

Total Monthly Income = $

EXPENSES (e.g., medical bills, insurance, vehicle loans, credit card debt, student loans, and child support)

Payee Monthly Payment Balance Owed

Total Monthly Expenses =

Applicant #1 Signature

Applicant #2 Signature

Rental Application Package & Background Check | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 6

RENTAL APPLICATION REQUIREMENTS

Each applicant must complete a rental application package. Applicants and occupants may be required to submit supplemental documents as requested.

An "applicant" is any household member who will be contributing to the monthly rental payment for the apartment.

An "occupant" is any household member who will not be contributing to the monthly rental payment for the apartment.

RENTAL SELECTION CRITERIA

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 1

Rental Address: Date of Application:

Rental Amount $ ______Requested Lease Term: ______Requested Move-In Date: ______

PLEASE PRINT AND ANSWER ALL QUESTIONS 1. APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

CURRENT LANDLORD/MORTGAGEE INFORMATION OwnRent Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 2

JOINT APPLICATION? YES NO ______IF 'NO', PLEASE PROCEED TO #3 (OTHER OCCUPANTS)

2. JOINT APPLICANT

Print Name: Phone#: Fax#:

Social Security #: Date of Birth: Email:

Current Address: City: State: Zip: How long?

Previous Address: City: State: Zip: How long?

IF CURRENT AND/OR PREVIOUS LANDLORD/MORTGAGE INFORMATION IS THE SAME FOR JOINT APPLICANT - PLEASE PROCEED TO EMPLOYMENT SECTION

CURRENT LANDLORD/MORTGAGEE INFORMATION ______Own Rent _____ Residential Home ______Manufactured Housing

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

PREVIOUS LANDLORD/MORTGAGEE INFORMATION

Print Name: Phone #:

Address: Fax #:

Rental Dates: FROM: TO: Monthly Rental Amount:

OCCUPATION OF APPLICANT:

Present Employer:

Address: Business Phone #:

Position: Annual Income:

Date of Hire: Supervisor:

PREVIOUS EMPLOYMENT (IF LESS THAN 4 YEARS ON PRESENT JOB):

Previous Employer:

Address: Business Phone #:

Position: Annual Income:

Employment Dates: Supervisor:

Full Name Relationship Date of Birth Remarks

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 3

4. AUTOMOBILES How Many Autos? Applicant #1: Driver's Lic. # VERIFIED Applicant #2: Driver's Lic. # MAKE MODEL YEAR COLOR LIC. PLATE # STATE

5. OTHER INCOME SOURCE AMOUNT PHONE # REFERENCE VERIFIED

6. FINANCIAL REFERENCES NAME ADDRESS ACCOUNT NUMBER(S)

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

BANK: CHECKING ACCOUNT:

SAVINGS ACCOUNT:

7. PERSONAL REFERENCES - Please provide the names of two individuals not related to applicant. NAME ADDRESS PHONE #

8. EMERGENCY INFORMATION

Member of your immediate family ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

Another emergency contact ______Relationship ______Telephone ______

Street Address ______City & State or Province ______Zip Code ______

9. LEASING AGENT INFORMATION

Print Name: Brokerage:

Phone #: Fax #: E-Mail:

Have you ever been convicted of a crime? If yes, please provide a letter of explanation. YES / NO

Have you ever been evicted? If yes, please provide a letter of explanation. YES / NO

Have you ever filed bankruptcy? If yes, please provide a letter of explanation. YES / NO Have you had credit under any other name within the last five years? YES / NO What is the name? ______

How were you referred to us? ______

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 4

10. PETS INFORMATION Type of Pet # Pets Pet Weight (lb) 1.______2.______

Applicant #1: Print Name Signature Date

Applicant #2: Print Name Signature Date

The above signature(s) are allowing a 'social security trace/criminal only' report be completed on the following occupants:

Name: ______Social Security # ______DOB ______

CURRENT ADDRESS FOR ABOVE NAMES

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 5

INCOME AND EXPENSE SUMMARY

Rental Address:

Applicant(s):

Monthly Rent $

INCOME Monthly Income Source of Income: Applicant #1 Wages: $ Applicant #2 Wages: $ Other Income: $ Other Income: $

Total Monthly Income = $

EXPENSES (e.g., medical bills, insurance, vehicle loans, credit card debt, student loans, and child support)

Payee Monthly Payment Balance Owed

Total Monthly Expenses =

Applicant #1 Signature

Applicant #2 Signature

Rental Application Package | Century21 S.G.R. | 1823 S. Michigan Ave., Chicago, IL 60616 | V13.10 | Page 6

1823 S. Michigan Ave. Chicago, IL 60616 Ph: 312-326-2121 Fax: 312-326-7911 Website: www.century21sgr.com

SELLERS NET SHEET

THE FIGURES CALCULATED BELOW ARE ONLY AN APPROXIMATION OF NET CASH UPON CLOSING. ALTHOUGH EVERY EFFORT HAS BEEN MADE TO ALLOW FOR VARIANCES AND ACCURACY, WE CANNOT GUARANTEE SAME.

PREPARED BY: ______PROPERTY: ______CLIENT NAME: ______DATE: ______

1. SALES PRICE………………………………………………… $______SUB-TOTAL $______2. SELLERS’ CUSTOMARY EXPENSES (SEE LINE 8) ...... $______SUB-TOTAL $______3. LESS COMMISSION TO SELLERS’ BROKER…………. . $______NET CASH AT CLOSING $______4. LESS COMMISSION TO BUYERS’ BROKER…………… $______NET CASH AT CLOSING $______5. LOAN DISCOUNT POINTS FHA______VA_____ $______SUB-TOTAL $______6. 1ST MORTGAGE PAYOFF……………………………………. $______SUB-TOTAL $______7. ESTIMATED REPAIRS……………………………………….. $______SUB-TOTAL $______8. OTHER LIENS/DEDUCTIONS………………………………. $______SUB-TOTAL $______9. EXPLANATION OF SELLERS CLOSING EXPENSES: A. TRANSFER STAMPS ($3/$1000.00 CITY OF CHICAGO)…. $______B. STAMPS ($1.50/$1000.00 COUNTY/STATE) …….………...... $______C. TITLE CHARGES…………………………………………………. $______D. INSPECTIONS…………………………………………………….. $______E. ATTORNEY……………………………………………………….. $ 500.00 APPROX____ F. SURVEY…………………………………………………………… $__300.00 APPROX___ G. TRANSACTION FEE…………………………………………….. $__350.00 ______H. HOME WARRANTY…………………………………………….. $__395.00 ______

TOTAL………. $______

IN ORDER TO EXPEDITE THE SALE OF YOUR PROPERTY, PLEASE FURNISH YOUR AGENT WITH THE FOLLOWING:

A. LEGAL DESCRIPTIOM FROM SURVEY B. WATER AND GAS BILLS C. ATTORNEYS NAME, ADDRESS, AND PHONE NUMBER D. PROPERTY TAX

LISTING PRESENTATION/SELLING BROCHURE

Download from “Century21SGR” website, under “Agent Toolbox” Or copy below url on browser www.Century21SGR.com/agents/about-sgr/agent-toolbox/

| Century21 S.G.R. | Office Policy Manual 2014 | Page 51 SGR Marketing Service Menu

SPONSORED-PRODUCTS COST TURN AROUND TIME FREQUENCY

E-News Letter Company Sponsored 1 Day 24 Times / Year

E-Greeting Company Sponsored 1 Day 11 Times / Year

Flyer Company Sponsored 1 Day Per Listing (PDF file/Window flyer)

Craigslist Company Sponsored Every Monday Weekly for 1 Month

Open House Announcements Company Sponsored 1 Day Per Open House (Weekday/Weekend)

E-Blast Open House Company Sponsored Every Friday Per Open House (Weekday/Weekend)

2 Weeks Century 21 Property Slide Show Company Sponsored (after input into C21 internal Per Listing database) 1 Week Listing Webpage Company Sponsored (after input into C21 internal Per Listing (URL.C21.com) database)

Website Placement Company Sponsored 1 Day Per Listing 856 internet sites

RECOMMENDED-PRODUCTS COST TURN AROUND TIME FREQUENCY

$25 / 1 Blast 2 Days E-Blast Per Listing $100 / 6 Blasts (after agent approval)

$85 / 100 Standard cards 5 Days Just Listed/Just Sold Post Cards Per Listing $105 / 100 Oversize cards (after agent approval)

10 Days 4 Page Brochure $135 / 50 brochures Per Listing (after agent approval)

VHT $120 / 15 photos 2-3 Days Professional Photos Per Listing Knight $100 / 20 photos touched-up (after photo shooting)

Custom Made Property Video 10 Days $200 Per Listing (Youtube) (after photos received)

Specific Domain Name with Individual Property Website 10 Days $300 Per Listing (featuring custom made property (after photos received) video)

HIGHLY RECOMMENDED-PRODUCTS COST TURN AROUND TIME FREQUENCY

Silver Package $130 5 Days Per Listing

Gold Package $200 2 Weeks Per Listing

Platinum Package $410 2 Weeks Per Listing Century21 SGR - Marketing for New Listings

Standard Silver Gold Platinum MARKETING 1 Welcome Letter: Furnish seller with a copy of listing agreement & a letter  recapping our sales and marketing process 2 15 Professional Photos of the listing  3 Sign at the property  4 Just Sold’ Sticker on the sign  5 One page Color Flyer in PDF format  6 10 Copies of Color Flyer  7 10 Copies of Neighborhood Information  8 50 Copies of 4-page Color Brochure  9 50 Postcards “Just Listed”  10 50 Postcards “Just Sold”  11 Professional Editing Remarks  12 Listing Posted on MLS and Crest-edge  13 State-of-the-art Website: Century21.com  14 State-of-the-art Website: Century21SGR.com  15 Advertise the listing in 806 Websites e.g. Trulia, Hotpad, postlet, Zillow,  Yahoo, Homes, etc 16 Craigslist advertising repeated every week for 1 months  17 Extended 2 months - Craigslist advertising repeated every week (total 3  months or until contract accepted - whichever comes first) 18 Century21 slideshow on YouTube.com  19 Century21 listing webpage for residential property  20 Eblast Service to up to 10K Agents under MRED  21 Customize and Dedicated Website/URL to the listing: 1823SMichigan.com  22 Special Listing Video clip on Youtube.com  23 Recap Leads with Century21 LeadRouter System  24 The Golden Ruler Seller/ Traffic Report  25 Open House post on MRED, Century21.com, Realtor.com, Zillow.com  26 Open House Eblast to agents under MRED  POST LISTING SERVICES 27 Preferred Client Club  28 E-mail HUD Statement at the end of the year  29 FSBO Lists  30 E-Newsletter & E-Greeting approx of 40 times a year  PROMOTION PRICE N/A $ 130 $ 200 $ 410

3/25/2014 11:10 AM SGR Marketing Service Order Form

RECOMMENDED-PRODUCTS PRICE TURN AROUND TIME ORDER HERE "X"

2 Days $25 / 1 Blast (after agent approval) E-Blast 2 Days $100 / 6 Blasts (after agent approval)

5 Days $85 / 100 Standard cards (after agent approval) Just Listed/Just Sold Post Cards 5 Days $105 / 100 Oversize cards (after agent approval)

10 Days 4 Page Brochure $135 / 50 brochures (after agent approval)

2-3 Days VHT $120 / 15 photos (after photo shooting) Professional Photos 2-3 Days Knight $100 / 20 photos touched-up (after photo shooting)

Custom Made Property Video 10 Days $200 (Youtube) (after photos received)

Specific Domain Name with Individual Property Website 10 Days $300 (featuring custom made property (after photos received) video)

HIGHLY RECOMMENDED-PRODUCTS PRICE TURN AROUND TIME ORDER HERE "X"

Silver Package $130 5 Days

Gold Package $200 2 Weeks

Platinum Package $410 2 Weeks

Property:

AGENT NAME:

PHONE NO:

EMAIL:

TOTAL AMOUNT OF ORDER:

PAID BY: CENTURY 21 S.G.R, INC. EXCLUSIVE LISTING AGREEMENT (Hereinafter referred to as the “Agreement”)

To: Century21 S.G.R., Inc. Date: ______1823 S. Michigan Ave., Chicago, IL 60616 Tel 312.326.2121 Fax 312.326.7911 | ID: 16734 1161 W. Madison St., Chicago, IL 60607 Tel 312.455.1322 Fax 312.455.1324 | ID: 14210 6600 N. Lincoln Ave., Lincolnwood, IL 60712 Tel 847.983.4477 Fax 847.983.4436 | ID: 3592

1 Property Address: ______Unit #______2 City: ______, State: ______, Zip Code: ______3 In consideration of the following agreements and of Broker’s efforts to procure an acquiring party for the property (together 4 with its undivided interest in the common elements, and accumulated reserves, if a condominium), and improvements 5 described below, I/We, the undersigned Seller(s) (hereinafter referred to as “Seller”) appoint you, the Broker (hereinafter 6 referred to as “Broker”), the exclusive right to sell (or, at Seller’s direction, exchange, lease or grant an option to purchase) 7 the property at a purchase price (or other applicable consideration) of $______8 (which may be changed from time to time). 9 10 This agreement shall begin at 12:00 AM. on ______,20__ and shall terminate on ______, 20__. This 11 agreement is irrevocable and can only be terminated prior to the termination date by written agreement of the parties. From 12 the date of your acceptance of any offer to purchase the property, unless such offer to purchase is subject to the continual 13 marketing of the property, Broker shall have no further obligation to market, advertise for sale or show your property. 14 15 FIXTURES AND PERSONAL PROPERTY. Seller agrees to transfer to Purchaser by a Bill of Sale, all heating, electrical, and 16 plumbing systems together with the following: (check or enumerate applicable items): 17 ___T.V. Antenna ___Washer ___Central air conditioner ___Electronic garage door(s) 18 ___Refrigerator ___Dryer ___Window air conditioner ___Remote Units(s) 19 ___Oven/Range ___Microwave ___Sump pump ___Electronic air filter 20 ___Central humidifier ___Fireplace gas log ___Fireplace screen and equipment ___Existing storms & screens 21 ___Window shades, attached shutters, draperies & curtains, hardware & other window treatments ___Ceiling fan 22 Other items included: ______23 Items excluded: ______24 25 POSSESSION: Seller shall surrender possession and remove all debris and Seller’s personal property not conveyed to Purchaser 26 no later than ______. Broker(s) and Seller(s) hereby agree that ______, 27 sales associate(s) affiliated with Broker, is (are) being named as Seller’s exclusive designated legal agent(s) under Seller’s 28 Exclusive Listing Agreement with Broker. Seller(s) understands and agrees that the Seller’s Designated Agent(s) (hereinafter 29 sometimes referred to as “Licensee”) will be Seller’s exclusive legal agent pursuant to the Exclusive Listing Agreement with 30 Broker and Broker will be free to enter into agreements with prospective buyers as legal agents of those buyers. Seller(s) also 31 understands and agrees that neither Broker nor other sales associates affiliated with Broker will be acting as legal agents of 32 the Seller(s). Broker, through one or more Licensees, must provide to Seller, at a minimum, the following services: 33 1. Accept delivery of and present to Seller offers and counteroffers to buy, sell, or lease Seller’s property; 34 2. Assist Seller in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the 35 offers and counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and 36 3. Answer Seller’s questions relating to the offers, counteroffers, notices, and contingencies. 37 38 SELLER AGREES: To cooperate fully with Broker (and Seller’s Designated Agent) and refer all inquiries to Broker (and 39 Seller’s Designated Agent), to allow inspection of property and entry at convenient times by Broker and/or cooperating 40 Brokers whether alone or accompanied by Broker, for the purpose of showing it to prospective Purchasers, to conduct all 41 negotiations through Broker, to pay to Broker a commission of _____% of the purchase price, or $ ______42 whichever is greater and a transaction fee of $350 in the event Broker produces a Purchaser ready, willing and able to 43 purchase the premises on the terms herein provided; or if the property is sold, gifted, exchanged, optioned (and such option is 44 exercised before or subsequent to the termination of this agreement), a joint venture is contracted, or the property is 45 exchanged through or as a result of Broker’s service and efforts, or Seller’s, or any other person or persons during the period

Seller Initials______Broker Initial ______Century21 S.G.R., Inc. | Executive Listing Agreement | V 13.10 | Page 1of 5

46 of this agreement; or if the property is sold, gifted, optioned, joint ventured, or exchanged within one hundred eighty (180) 47 days after termination of this agreement to any person to whom the property was submitted during the term of this agreement 48 provided that a valid, bonafide, written listing agreement has not been entered into with another licensed real estate broker 49 during such period. Broker hereby agrees to cooperate _____% of purchase price or $ ______minus $ _____ 50 to any co-broker procuring a buyer for property. 51 52 DUAL REPRESENTATION: Broker and Licensee may undertake a dual representation (represent both the seller or landlord 53 and the buyer or tenant) to sell, exchange, lease, or grant an option to purchase your property or properties they may show 54 you. The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing this 55 document, please read the following: Representing more than one party to a transaction presents a conflict of interest since 56 both clients may rely upon Licensee’s advice and the clients’ respective interests may be adverse to each other. Licensee will 57 undertake this representation only with the written consent of ALL clients in the transaction. Any agreement between the 58 clients as to a final contract price and other terms is a result of negotiations between the clients acting in their own best 59 interests and on their own behalf. You acknowledge that Licensee has explained the implications of dual representation, 60 including the risks involved, and understand that you have been advised to seek independent advice from your advisors or 61 attorneys before signing any documents in this transaction. 62 63 WHAT A LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT: 64 1. Treat all clients honestly. 65 2. Provide information about the property to the buyer or tenant. 66 3. Disclose all latent material defects in the property that are known to the Licensee. 67 4. Disclose financial qualification of the buyer or tenant to the seller or landlord. 68 5. Explain real estate terms. 69 6. Help the buyer or tenant to arrange for property inspections. 70 7. Explain closing costs and procedures. 71 8. Help the buyer compare financing alternatives. 72 9. Provide information about comparable properties that have sold so both clients may make educated decisions on what 73 price to accept or offer. 74 75 WHAT A LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT: 76 1. Confidential information that the Licensee may know about the clients, without that client’s permission. 77 2. The price the seller or landlord will take other than the listing price without permission of the seller or landlord. 78 3. The price the buyer or tenant is willing to pay without permission of the buyer or tenant. 79 4. A recommended or suggested price the buyer or tenant should offer. 80 5. A recommended or suggested price the seller or landlord should counter with or accept. 81 If either client is uncomfortable with this disclosure and dual representation, please let Licensee know. You are not required 82 to accept this section unless you want to allow the Licensee to proceed as a Dual Agent in this transaction. Seller 83 acknowledges having read the foregoing provisions regarding the issue of Agency and Representation as defined under 84 Illinois License Law. By checking “yes”, initialing below, and signing this Agreement, you acknowledge that you have read 85 and understand this language and voluntarily consent to the Licensee acting as a Dual Agent (that is, to represent BOTH the 86 Seller or landlord and the Buyer or tenant) should that become necessary. ____Yes ____No (check one) _____ (initials) 87 In the event the property is leased during the term of this agreement, Seller agrees to pay Broker a rental commission of one 88 month’s rent plus expenses. In the event the property is purchased by the lessee, or an option to purchase is granted to lessee 89 which is then exercised by lessee, then in addition to a rental commission, the sales commission or compensation shall be 90 paid to Broker as set forth above. 91 92 ADDITIONAL TERMS OR INFORMATION: Seller hereby represents the following information to be true and correct: 93 a) Real Estate taxes for 20___ are $______. Homeowner’s Exemption: _____Yes /_____No 94 Senior Citizen’s Exemption: ______Yes /_____No 95 b) Current monthly assessment $ ______; includes______. 96 c) Percentage of interest in common elements is _____%. Waiver of Right of First Refusal necessary ___Yes / ___No. 97 d) Seller is___ is not___ (check one) aware of a proposed special assessment. Seller shall keep listing Broker informed of all 98 Board of Directors/Managers actions. Seller shall keep Broker informed of all changes to the above. 99 e) If applicable, the amount of special assessment is $______with a remaining balance due of $______. 100 f) The lot size is approximately ______. If condo, approximate square feet ______. 101 g) For residential properties located within the City of Chicago, local ordinances require that all properties must have smoke 102 and carbon monoxide detectors present and in working condition. In addition, Seller shall provide Broker with the

Seller Initials______Broker Initial ______Century21 S.G.R., Inc. | Executive Listing Agreement | V 13.10 | Page 2of 5

103 following, if applicable, within 72 hours after the written acceptance of this Agreement: (a) Illinois Residential Real 104 Property Disclosure Report; (b) Heat Disclosure; (c) Lead Paint Disclosure; (d) Radon Disclosure; and (e) Zoning 105 Certificate. 106 107 PROVISIONS: 108 109 1. Broker’s sole duty is to use Broker’s best efforts to effect a sale, exchange, lease, or option of the property, and Broker is not 110 charged with the custody of the property, its management, maintenance, upkeep or repair. 111 112 2. The parties agree that any dispute, controversy, or claim arising out of or relating to this exclusive listing 113 agreement, or any breach thereof by either party, shall be resolved by arbitration in accordance with the 114 Code of Ethics and Arbitration Manual of the National Association of Realtors, as amended from time to 115 time, through the facility of the Chicago Association of Realtors. The parties agree to be bound by any award 116 rendered by any professional standards arbitration hearing panel of the Chicago Association of Realtors and 117 further agree that judgment upon any award rendered by a professional standards arbitration hearing panel 118 of the Chicago Association of Realtors may be entered in any court having competent jurisdiction thereof. 119 The parties agree to execute any arbitration agreement and documents as may be required by the Chicago 120 Association of Realtors to facilitate any arbitration. 121 122 3. Seller shall comply with the Real Estate Settlement Procedures Act of 1974, if applicable, and furnish all information 123 required for compliance therewith, and, if applicable, Seller agrees to comply with the Residential Real Property Disclosure 124 Act. 125 126 4. If the property is other than a condominium or a cooperative, then prior to closing, Seller shall furnish a survey by a licensed 127 land surveyor dated not more than six (6) months prior to date of closing of Real Estate Sale Contract showing the present 128 location of all improvements. If Purchaser or Purchaser’s mortgagee desires a more recent or extensive survey, same shall be 129 obtained at Purchaser’s expense. If the property is a condominium, then no later than 15 days from the date hereof Seller 130 shall furnish to Broker a complete set of condominium documents, to include declaration, bylaws, and if available, a survey. 131 If the property is a cooperative, then, no later than 15 days from the date hereof Seller shall furnish to broker a complete set 132 of cooperative documents, to include the proprietary lease or trust agreement, the bylaws, and if available, a survey. In the 133 event the property is a townhouse or condominium and dependent upon the condominium association’s governing 134 documents, either upon execution of this multiple listing agreement or upon acceptance of an offer to Purchaser by Seller, 135 Seller shall promptly notify the appropriate representative of the condominium association or any affiliated organization of 136 the contemplated transaction. Seller shall furnish Purchaser a statement from an authorized officer or agent of the 137 condominium association certifying payment of assessments for condominium common expenses, and if applicable, proof of 138 waiver or termination of any right of refusal or general option contained in the declaration of condominium together with any 139 other documents required by the declaration of condominium or its bylaws as a precondition to the transfer of ownership. At 140 time of closing Seller shall deliver to the Purchaser all appropriate documents properly endorsed and a survey or plat of the 141 condominium unit showing the location of all improvements of such unit and further showing any parking spaces or garages 142 that will be conveyed. Seller shall comply with all of the conditions and stipulations of the Illinois Condominium Property 143 Act, as amended, as may be applicable. 144 145 5. Seller shall furnish an owner’s title insurance policy in the amount of the purchase price showing good and merchantable 146 title, and execute and deliver, or cause to be executed and delivered to Purchaser a proper instrument of conveyance. 147 148 6. Seller hereby indemnifies and holds Broker and Broker’s agents harmless, from any and all claims, disputes, litigation, 149 judgments, costs and legal fees from the defense of same, including reasonable attorney’s fees and costs, arising from the 150 misrepresentations by the Seller or other incorrect information supplied by the Seller to Broker or any third party. 151 152 7. Where applicable, the singular form shall include the plural, and the masculine form shall include the feminine and neuter. 153 154 8. This agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors, and assigns 155 of the parties hereto. 156 157 9. Seller warrants his authority to execute this agreement and to deal with and on behalf of the said property as herein provided. 158

Seller Initials______Broker Initial ______Century21 S.G.R., Inc. | Executive Listing Agreement | V 13.10 | Page 3of 5

159 10. If a dispute arises between Seller and Purchaser as to whether a default had occurred, Broker shall hold the earnest money 160 and pay it out as agreed in writing by Seller and Purchaser or as directed by a court of competent jurisdiction. In the event of 161 such dispute Seller agrees that Broker may deposit the funds with the Clerk of the Circuit Court by the filing of an action in 162 the Nature of an Interpleader. The Seller agrees that Broker may be reimbursed from the earnest money for all costs, 163 including reasonable attorneys’ fees and court costs, related to the filing of the Interpleader and hereby agrees to Indemnify 164 and hold Broker harmless from any and all claims and demands, including the payment of reasonable attorney’s fees, costs 165 and expenses arising out of such default claims and demands. If Seller defaults, earnest money, at option of Purchaser, and 166 upon written direction by Seller and Purchaser or as directed by a Court of competent jurisdiction, shall be refunded to 167 Purchaser, but such refunding shall not release Seller from the obligation of this agreement. Notwithstanding anything herein 168 to the contrary, disbursement of earnest money shall be in accordance with the Real Estate License Act, as amended. 169 170 11. Seller understands and agrees that Broker may from time to time represent or assist other sellers who may be interested in 171 selling property to buyers with whom Broker has a buyer agency contract or with whom Broker is working as a customer. 172 The Seller consents to Broker’s representation of such other sellers before, during and after the expiration of this Exclusive 173 Listing Agreement and expressly waives any claims, including, but not limited to, breach of fiduciary duty or breach of 174 contract, based solely upon Broker’s representation or assistance of other sellers who may be interested in selling property to 175 buyers with whom Broker has a buyer agency contract or with whom Broker is working as a customer. 176 177 12. Promoting and advertising property per the Illinois Real Estate Act of 2000, as revised. Broker is hereby authorized to 178 promote and advertise the Property as Broker deems appropriate, including but not limited to (i) displaying signs on the 179 Property, (ii) placing the Property in any multiple listing service in which Broker's internet website and on the internet 180 websites of other brokers, and/or through any other advertising medium which Broker may subscribe to or otherwise use, and 181 (iv) releasing information as to the amount of the selling price, type of financing, and number of days to sell this Property to 182 any multiple listing service in which Broker participates at the time a contract is executed. Consistent with the foregoing, any 183 internet website on which the Property is promoted may (a) allow third parties to write comments or reviews about the 184 Property, or display a hyperlink to such comments or reviews, or (b) include an automated estimate of the fair market value 185 of the Property, or display a hyperlink to such an estimate. The foregoing notwithstanding, by checking one or both of the 186 boxes at the end of this Paragraph 12, and writing its initials below, Seller requests that on any internet website on which the 187 Property is promoted, one or both of these features be disabled or discontinued. Broker in turn will disable or discontinue 188 such designated features on its website, and will communicate to each multiple listing service in which it participates, and to 189 each broker or other third party on whose internet website the Property is promoted or advertised, that the Seller has elected 190 to have one or both of these features disabled or discontinued. However, notwithstanding any such Seller request, a broker's 191 internet website may (1) communicate the broker's professional judgment concerning the Property, and (2) notify its 192 customers and visitors to its website that a feature has been disabled or discontinued "at the request of Seller". 193 194 Disable/Discontinue Website Features (check any that apply): 195 Disable/Discontinue Comments/Reviews regarding Property; 196 Disable/Discontinue Automated Estimate of Market Value of Property. 197 Initial if boxes above are checked. (Seller initials) ______(Seller initials) ______. 198 199 13. In the event this Agreement is cancelled by Seller in contravention of the early termination provisions of lines 8 and 9 of this 200 Agreement, unless mutually agreed to in writing by Broker and Seller, Seller shall pay to Broker, upon written demand by 201 Broker a cancellation fee of $2,000 (Two Thousand Dollars) to compensate broker for time, expenses and services involved 202 in marketing the property. In cases of the Seller’s breach of this Agreement, Seller shall pay to Broker the commission or 203 compensation previously described within this Agreement payable on the full price previously listed within this Agreement to 204 compensate Broker for his or her time, expenses and services involved in marketing the property. No amendment or 205 alteration with respect to the amount of commission or time of payment of commission shall be valid or binding unless made 206 in writing and signed by the parties hereto. Broker’s commission is to be paid at time of execution and delivery of deed, 207 option, lease, joint venture agreement, or installment agreement for deed, whichever occurs sooner, and Broker is authorized 208 to deduct the commission and expenses from the earnest money deposit at such time. 209 210 BROKER IS AUTHORIZED TO ACCEPT AN EARNEST MONEY DEPOSIT FROM PURCHASER. IF 211 PURCHASER DEFAULTS AND SELLER(s) DECLARES A FORFEITURE OF THE EARNEST MONEY, THE 212 EARNEST MONEY SHALL BE APPLIED FIRST TO PAYMENT OF BROKER’S COMMISSION AND ANY 213 EXPENSES INCURRED, AND THE BALANCE PAID TO SELLER. 214

Seller Initials______Broker Initial ______Century21 S.G.R., Inc. | Executive Listing Agreement | V 13.10 | Page 4of 5

215 14. IT IS ILLEGAL FOR EITHER THE SELLER OR THE BROKER TO REFUSE TO DISPLAY OR TO SELL TO ANY 216 PERSON BECAUSE OF ONE’S MEMBERSHIP IN A PROTECTED CLASS, E.G.: RACE, COLOR, RELIGION, 217 NATIONAL ORIGIN, SEX, ANCESTRY, AGE, MARITAL STATUS, PHYSICAL OR MENTAL HANDICAP, 218 FAMILIAL STATUS, OR ANY OTHER CLASS PROTECTED BY ARTICLE 3 OF THE ILLINOIS HUMAN RIGHTS 219 ACT. SELLER AND BROKER ACKNOWLEDGE THAT THEY SHALL ALSO BE BOUND BY THE PROVISIONS OF 220 STATE AND LOCAL (CITY AND/OR COUNTY) HUMAN RIGHTS OR FAIR HOUSING ORDINANCES IF ANY AND 221 AGREE TO COMPLY WITH SAME. 222 223 15. Seller hereby authorizes Broker and its agent to place an electronic or combination lock box on the above property in 224 accordance with the terms and conditions previously described within this Agreement for the purpose of keeping a key to the 225 property for access by cooperating real estate agents. Seller shall hold Broker, its agents, and any Multiple Listing Service of 226 which Broker is a participant harmless from any and all liability, claims, judgments, obligations, or demands against Broker 227 and/or agent as a result of Seller’s authorization to use a “Lock Box,” including, but not limited to, any and all liabilities and 228 costs, including reasonable attorney fees incurred by Broker and/or agents as a result of this authorization, except for criminal 229 or gross negligence on the part of the Broker and/or agents. Seller has been advised by the Listing Broker on the safeguarding 230 or removal of valuables now located within said premises and the need to obtain personal property insurance through the 231 Seller’s insurance company. If the property is leased, Seller acknowledges that he has in fact noticed and advised the 232 tenant/occupant of the foregoing and that the tenant/occupant agrees to the foregoing terms and provisions. 233 234 235 236 237 238 239 SELLER 1 Date______247 SELLER 2 Date______240 Signature: ______248 Signature: ______241 Print Name: ______249 Print Name: ______242 Address:______250 Address:______243 Home Phone: ______251 Home Phone: ______244 Work Phone: ______252 Work Phone: ______245 Fax: ______253 Fax: ______246 Email: ______254 Email: ______255 Seller’s Attorney: ______Tel: ______Fax: ______256 257 258 259 BROKER Signature: ______260 Century21 S.G.R., Inc. Managing Broker Date

Seller Initials______Broker Initial ______Century21 S.G.R., Inc. | Executive Listing Agreement | V 13.10 | Page 5of 5

CENTURY 21 S.G.R, INC. EXCLUSIVE RIGHT TO LEASE AGREEMENT (Hereinafter referred to as the “Agreement”)

To: Century21 S.G.R., Inc. 1823 S. Michigan Ave., Chicago, IL 60616 Tel 312.326.2121 Fax 312.326.7911 | ID: 16734 1161 W. Madison St., Chicago, IL 60607 Tel 312.455.1322 Fax 312.455.1324 | ID: 14210 6600 N. Lincoln Ave., Lincolnwood, IL 60712 Tel 847.983.4477 Fax 847.983.4436 | ID: 3592 1 2 In consideration of the services to be performed by Century21 S.G.R., Inc. ("Broker") and the commission to be paid by 3 ______(“Owner”), the parties hereto agree that Broker shall 4 have the exclusive right to market, advertise and procure a tenant for Owner's property upon the terms and conditions set 5 forth in this Agreement. 6 7 PROPERTY DESCRIPTION AND INFORMATION 8 Property Address ______("Property") 9 Furnished ______Unfurnished ______Occupancy Date ______10 Parking Description ______11 Monthly Rental $ ______(or such lesser amount as Owner agrees to accept). Security Deposit $______12 Pets Allowed: # Cats ______# Dogs ______Maximum Pet Weight ______Maximum Pet Count _____ Pet Deposit $______13 Rental Term ______or such lesser term as Owner may agree to accept. 14 Personal Property Included on the Property ______15 ______16 17 TERM OF THIS AGREEMENT: This Agreement shall begin at 12:00 A.M. on ______, 20 ______and 18 shall terminate on ______, 20 ____. This Agreement is irrevocable and can only be terminated prior to the 19 termination date by written agreement of the parties. 20 21 DESIGNATED AGENT: Broker designates and Owner accepts ______, 22 ("Designated Agent"), a licensed associate affiliated with Broker, as Owner's legal agent(s) to market and lease the 23 Property. Broker reserves the right to name additional designated agents when in Broker's discretion it is necessary. If 24 additional designated agents are named, Owner shall be informed in writing within a reasonable time. Owner 25 acknowledges that Owner's Designated Agent may from time to time have another licensed associate who is not an agent 26 of Owner host an open house at the Property or provide similar support in the marketing of the Property. Owner 27 understands and agrees that this Agreement is a contract for the marketing of Owner's Property and that Owner's 28 Designated Agent is the only legal agent of Owner. 29 30 BROKER AGREES: To compile and have available all rental information; to schedule appointments for prospective tenants 31 at convenient times; to make continued and earnest effort to rent the property; to advertise the property as Broker deems 32 advisable in order to locate prospective tenants; submit information concerning the Property to the Multiple Listing Service 33 and to invite other real estate licensees to view and/or show the Property. If the Property is located in any municipality in 34 which a Residential Landlord and Tenant Ordinance applies, a copy of said ordinance will be attached to each residential 35 lease. Only the Broker will market the property. 36 37 Broker shall accept delivery of and shall present to Owner all offers and counteroffers to lease the Property. In addition, 38 Broker shall assist Owner and answer all questions including those regarding developing, communicating, negotiating and 39 presenting offers, counteroffers and notices that relate to the offers and counteroffers until a lease is signed and all 40 contingencies are satisfied or waived. 41 42 OWNER AGREES: To cooperate fully with and refer all inquiries to Broker; to allow Broker to place a 'For Rent' sign on 43 Property; to allow Broker to place a lock box on Property; to arrange for Broker access if Property is currently occupied; to 44 conduct all negotiations through Broker; to pay Broker a commission of ______if the Property is 45 rented by Broker, Owner or by or through any other person during the period of this Agreement or if it is rented directly or 46 indirectly within ______months after the termination of this Agreement ("Protection Period") to a tenant to whom it was 47 offered during the term of this Agreement. However, no commission or fee will be due under the terms of this Agreement if

Owner Initials ______| Century21S.G.R., Inc. | Exclusive Right to Lease Agreement | V: 13.11 | Page 1of 3 48 during the Protection Period a valid, written listing agreement is entered into with another licensed real estate broker. If 49 the tenant or Owner extends the lease beyond its original term, Owner agrees to pay Broker a commission of 50 ______. If the tenant purchases the Property during the term of the lease, or any 51 extension thereof, Owner agrees to pay Broker a commission of ______. 52 53 TENANT DESIGNATED AGENTS: Owner has been informed that potential tenants may elect to employ the services of a real 54 estate licensee other than Owner's Designated Agent to represent the interest of said potential tenants. 55 56 MARKETING FEES: Commission(s) shall be paid at the time of entering into a lease and the time of extension of a lease or 57 on the closing of the sale of the Property, whichever is applicable. A portion of said commission may be paid by Broker to a 58 cooperating broker, but such payment shall not create any legal relationship between Owner, Broker and a cooperating 59 broker. Cooperating compensation will be offered at no less than ______. If the party referred to as Owner 60 in this Agreement is in fact a present tenant who desires to sub-let or assign by this Agreement, then a copy of the lease 61 under which the Property is now leased shall be attached hereto and the terms contained herein shall become a part of this 62 Agreement. Owner agrees to cooperate fully with Broker in obtaining any required consents to an assignment or sublet. 63 64 MANAGEMENT OF PROPERTY: Broker's sole duty is to affect a lease of the Property and Broker is not charged with 65 the custody of the Property, its management, maintenance, upkeep or repair, or with the management of the Property after 66 a lease has been entered into between Owner and a tenant. Nothing contained in this Agreement, however, shall prohibit 67 Broker from entering the Property for the purpose of showing it to prospective tenants, if occupied, at reasonable hours and 68 by appointment only. It is the affirmative duty of Owner to allow showings. 69 70 IN WRITING: No amendment or alterations in the terms, with respect to the rental price of the Property, amount of 71 commission or with respect to the time of payment of the commission or other terms of this Agreement, shall be valid or 72 binding unless made in writing and signed by all parties. 73 74 NON-DISCRIMINATION: THE PARTIES UNDERSTAND AND AGREE THAT IT IS ILLEGAL FOR EITHER 75 OF THE PARTIES TO REFUSE TO DISPLAY OR LEASE OWNER'S PROPERTY TO ANY PERSON ON THE 76 BASIS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, ANCESTRY, AGE, MARITAL STATUS, 77 PHYSICAL OR MENTAL HANDICAP, MILITARY STATUS, SEXUAL ORIENTATION, UNFAVORABLE 78 DISCHARGE FROM MILITARY SERVICE, FAMILIAL STATUS, ORDER OF PROTECTION STATUS OR 79 ANY OTHER CLASS PROTECTED BY ARTICLE 3 OF THE ILLINOIS HUMAN RIGHTS ACT. THE PARTIES 80 AGREE TO COMPLY WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL FAIR HOUSING LAWS. 81 82 OWNER AUTHORITY TO LEASE: Owner warrants that Owner has the authority to execute this Agreement and to bind all 83 parties who have an ownership interest in the Property and to deal with and on behalf of said Property as herein provided. 84 85 OWNER REPRESENTATIONS: Owner shall be solely responsible for providing information concerning the condition of 86 the Property. Broker shall have no duty to confirm or deny such information. Owner shall indemnify, defend and hold 87 Broker, its agents, servants, successors, and assigns harmless from any and all claims, costs and expenses, including 88 attorneys' fees, arising directly or indirectly out of or from the condition of the Property and/or Owner's actions or 89 inactions in connection with the Property. 90 91 BROKER REPRESENTATION OF OTHERS: Owner acknowledges that Broker acts as a marketing representative for 92 other real estate pursuant to marketing agreements with other owners. Owner further acknowledges that the real estate 93 which a renter may wish to acquire may be offered for rent by an owner who is also a party to a marketing agreement 94 with Broker. These marketing agreements may designate one or more sales/rental associates affiliated with Broker as 95 the designated agent of that owner. Owner has also been advised of the potential of dual agency, which would arise when 96 Owner's Designated Agent represents both the tenant and Owner. Such dual agency must be disclosed to and requires 97 consent of both Owner and the tenant. 98 99 DISCLOSURE AND CONSENT TO DUAL AGENCY 100 The undersigned (INSERT NAME)______('Licensee'), may 101 undertake a dual representation (represent both the seller or Owner and the buyer or Tenant) for the sale or lease of 102 Property. The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing

Owner Initials ______| Century21S.G.R., Inc. | Exclusive Right to Lease Agreement | V: 13.11 | Page 2of 3 103 this document please read the following: Representing more than one party to a transaction presents a conflict of interest 104 since both clients may rely upon Licensee's advice and the clients' respective interests may be adverse to each other. 105 Licensee will undertake this representation only with the written consent of ALL clients in the transaction. Any agreement 106 between the clients as to a final contract or lease price and other terms is a result of negotiations between the clients 107 acting in their own best interests and on their own behalf. You acknowledge that Licensee has explained the 108 implications of dual representation, including the risks involved, and understand that you have been advised to seek 109 independent advice from your advisors or attorneys before signing any documents in this transaction. 110 WHAT A LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT 111 1. Treat all clients honestly. 112 2. Provide information about the property to the buyer or tenant. 113 3. Disclose all latent material defects in the property that are known to the Licensee. 114 4. Disclose financial qualification of the buyer or tenant to the seller or owner. 115 5. Explain real estate terms. 116 6. Help the buyer or tenant to arrange for property inspections. 117 7. Explain closing costs and procedures. 118 8. Help the buyer compare financing alternatives. 119 9. Provide information about comparable properties that have been sold or leased so both clients may make educated decisions on 120 what price to accept or offer. 121 WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT 122 1. Confidential information that Licensee may know about a client, without that client's permission. 123 2. The price or terms the Seller or Landlord will take other than the listing price, without permission of Seller or Landlord_ 124 3. The price or terms the Buyer or Tenant is willing to pay without permission of the Buyer or Tenant. 125 4. A recommended or suggested price or terms the Buyer or Tenant should offer. 126 5. A recommended or suggested price or terms the Seller or Landlord should counter with or accept. 127 If either client is uncomfortable with this disclosure and dual representation, please let Licensee know. You are not 128 required to sign this document unless you want to allow Licensee to proceed as a Dual Agent in this transaction. By signing 129 below, you acknowledge that you have read and understand this information and voluntarily consent to Licensee acting as 130 a Dual Agent (that is, to represent BOTH the seller or Owner and the buyer or Tenant) should that become necessary. 131 132 Owner Signature: ______Owner Signature: ______133 134 ENTIRE AGREEMENT: This Agreement constitutes the complete agreement between the parties relating to the Property, 135 and is binding upon and inures to the benefits of the heirs, executors, administrators, successors and assigns of Owner and 136 Broker. Any prior agreements pertaining thereto, whether oral or written, have been superseded by this Agreement. In the 137 event any part of the Agreement is found to be void or unenforceable, the balance of this Agreement shall survive. 138 139 If more than one tenant or more than one Owner is involved, or if Broker is an entity other than a natural person, the pronouns 140 and grammatical structure shall be understood to conform. 141 142 OWNER 1 Date______150 OWNER 2 Date______143 Signature: ______151 Signature: ______144 Print Name: ______152 Print Name: ______145 Address:______153 Address:______146 Home Phone: ______154 Home Phone: ______147 Work Phone: ______155 Work Phone: ______148 Fax: ______156 Fax: ______149 Email: ______157 Email: ______158 CENTURY21 S.G.R., INC. 159 Managing Broker Signature: ______160 Designated Broker Signature: ______

Owner Initials ______| Century21S.G.R., Inc. | Exclusive Right to Lease Agreement | V: 13.11 | Page 3of 3

CHAPTER EIGHT: BUYER QUALIFICATION POLICY

| Century21 S.G.R. | Office Policy Manual 2014 | Page 44

BUYER QUALIFICATION POLICY

When acting as an agent of the buyer, qualifying the buyer is a critical step in completing a property transaction. Century 21 S.G.R., Inc strongly recommends that each agent become knowledgeable through company training and offered continuing education programs about properly qualifying a buyer as to her/his financial ability to purchase a property. Financial qualification has two major parts, as follows.

LOAN QUALIFICATION

If working as an agent of the buyer, the agent has duty to act diligently for her/his client. In this case, the client is the buyer. The buyer client has a right to expect that the agent will diligently determine whether a buyer can qualify to purchase a certain type of property. These, steps may include: a. Completion of a financial qualification form. This form should be in sufficient detail and sufficiently accurate that the buyer is reasonably sure of qualification. If an agent is not sure of her/his level of skill to complete such a form, the agent should get further education and training and immediately call a sales manager or lender to assist. b. Consultation with the buyer and a lender to determine financial ability to qualify for a loan and the amount of the loan. No real estate sales contact is to be submitted without a pre-approval letter from a reputable lender which has gone through automated underwriting system and actual human underwriter.

Remember, that if you are working as a disclosed dual agent of the seller and the buyer your qualification of the buyer will benefit both clients but that you must keep confidential information of each client to yourself.

ESTIMATED CLOSING COSTS

The second type of financial qualification which accompanies loan qualification (and in many cases is a part of loan qualification) is estimating closing costs. Duties exist to diligently and accurately estimate closing costs. Century 21 S.G.R., Inc. has a policy of strongly encouraging its agents to become educated through company and/or board/association training and education about estimating closing costs.

Do not use rules of thumb such as 2-5% of the purchase price. The spread of costs is too great in such estimates to be sufficiently accurate. For a first time buyer with little cash, a one- half percent difference in closing costs can mean the difference between purchasing and not purchasing.

Do not use computerized closing cost estimating programs unless previously approved and authorized by Century 21 S.G.R., Inc. The programs may or may not take local costs and variations into account. In addition, the programs which allow for local costs may require that

| Century21 S.G.R. | Office Policy Manual 2014 | Page 45 the agent input the costs. If the agent desires to use such a program, management of Century 21 S.G.R., Inc will approve its use and review the local costs being input.

Lender closing costs are generally reviewed in loan qualification procedures. One note of caution is in order. Some lenders unbundle services and charge for each service. These so-called "extra" costs are in addition to origination fees and points. They may include charges for "processing fee”,” underwriting fee”,” lender’s closing fee" (apart from title company closing fee),"notary fees”,” document preparation fee”,” courier fee", etc., totaling $500.00 or more on a single closing.

Whether representing a buyer or a seller, a lender should be asked what her/his "extra" fees are at the time closing costs are estimated and not at time of commitment or closing.

Although Century 21 S.G.R., Inc. emphasizes accurately and diligently estimating closing costs, it is the policy of Century 21 S.G.R., Inc. that we do not prepare final closing statements. The preparation of final closing statements may require contract interpretation and thus result in allegations of the unauthorized practice of law.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 46

CHAPTER NINE: SALE CONTRACT POLICY

| Century21 S.G.R. | Office Policy Manual 2014 | Page 47 SALE CONTRACT COMPLETION

As a member of the Safety First Board of REALTORS®, Century 21 S.G.R., Inc. uses the standard contract form and riders available through the Association, with the sole exception of our Exclusive Right to Sell Listing Contract. The Illinois Supreme Court decision in Chicago Bar Association vs. Quinlan & Tyson and Article 13 of the REALTOR Code of Ethics govern an agent's conduct with respect to use of the form and the unauthorized practice of law. Based upon the Quinlan & Tyson decision the agent may only complete the contract form that is commonly used in the community with business or factual information. Beyond that, if the client wants to change the language of the contract provisions or add other than the standard form riders, the client must do so themselves or through their attorney. If the client has a question concerning the legal effect or impact of contract language they should be referred to their attorney. The agent may answer questions about the contract and riders based on their experience and what the customs and practices in the community may be. It is the policy of Century 21 S.G.R., Inc. that no agent shall prepare or complete a legal document for a client or customer other than the standard sales contract form or standard riders to the contract.

SALE CONTRACT TERMS

Several areas of contract terms are traps creating risk for the unsuspecting agent. Century 21 S.G.R., Inc. maintains policies regarding these areas to reduce risk and heighten awareness. These are covered below. a. EARNEST MONEY: Several concerns regarding earnest money are involved. First is the "how much" issue. The Company cannot maintain a policy which requires any specific amount of earnest money as the company and agent are not parties to the contract. However, if you represent the seller, the advice to the seller will be that sufficient earnest money is very important in that it shows how "earnest" a buyer is. The company has seen many cases where low earnest money (1-2% of offer price or less) has resulted in a buyer simply defaulting on the contract and forfeiting the low amount of earnest money, banking on the fact that it is unlikely that a seller would sue. There have also been many cases where sufficient earnest money (5-10% of the offer price or more) has kept an anxious buyer in a contract to closing because of the prospect of losing a substantial amount of earnest money.

FINE IMPOSED FOR BRINGING IN EARNEST MONEY LATE: Earnest money is due in the office the next day after a transaction is complete. A transaction is complete once an offer has been accepted. If the offer is accepted the day before a bank holiday, the earnest money must be deposited the day following the bank holiday. There is a $500.00 fine assessed against any agent who does not comply with the Real Estate Act. Any contract accepted must be turned into Century 21 S.G.R., Inc. within 24 hours of acceptance. If this is not complied with the same $500.00 will apply. This applies if you are the listing or the selling agent.

If you represent the buyer, the classic approach to buyer representation might suggest to provide the lowest possible earnest money in every case. However, the agent is

| Century21 S.G.R. | Office Policy Manual 2014 | Page 48 cautioned that this may not serve the best interests of the buyer in all cases. For example, because earnest money indicates how "earnest" a buyer is, or how "strong" an offer is, a buyer may be at a competitive disadvantage if low earnest money is offered in a situation where the buyer's offer is competing with one or more other offers. As in all other situations, if you represent the buyer, your job is to give the buyer the best of the agent’s and company's expertise, advice and talent which may include advice which on first impression does not follow the "typical" rules.

A second earnest money issue deals with what can be accepted as earnest money. Illinois rules define “escrow moneys” which includes earnest money, as “all moneys, promissory notes or any other type or manner of legal tender or financial consideration…”

The policy of Century 21 S.G.R., Inc. is that only cash, checks or money orders are accepted as earnest money without further permission from the parties. The company's policy regarding the rule is that items such as postdated checks are not acceptable. The company will not hold checks even if postdated. Any money given to Century 21 S.G.R., Inc. will be deposited to the Company escrow account immediately upon an accepted contract and not later than the next business day after acceptance as provided for in the License Law rules. Agents must promptly transmit funds to the broker for deposit.

A corollary issue occasionally arises regarding acceptance of a credit card or line of credit check (Visa, MasterCard, American Express, home equity loan). While it is arguable that these "checks" are negotiable, Century 21 S.G.R., Inc. takes a conservative position regarding these instruments and strongly discourages their use. The primary reason for this policy regards the difficulty in determining whether this instrument has "cleared". There is no easy way to determine whether the line of credit has been exhausted or overdrawn and upon presentation, will be rejected. In addition, a lender may require that such balances be paid off before loan approval or closing. b. INCLUSIONS AND EXCLUSIONS: As covered in the section on Accuracy of Listing Information, the contract is the primary method to determine what is being sold with the property. Do not rely on the listing agreement or listing information sheet as to the inclusions and exclusions in a transaction. These documents are not normally made a part of the contract.

This area is of great importance for risk reduction purposes. Personal property inclusions and exclusions cause a great number of the disputes in a sales contract and can be expensive for an unwary agent.

Some common problem areas the company is familiar with are as follows: 1. Loose laid carpet that resembles tacked down carpeting. 2. Draperies, curtains, window treatments, etc., especially as to which may be excluded (e.g. master bedroom draperies which match the bedspreads). 3. Stoves/ranges (check contract for inclusion in printed matter) 4. Portable dishwasher 5. Refrigerator (Even if built-in.)

| Century21 S.G.R. | Office Policy Manual 2014 | Page 49 6. Burglar alarms (Be sure to determine whether leased or owned and whether any continuing service fees apply.) 7. Outside mailbox and post (Typically "fancy" or ornate mailboxes and posts which a seller may want to remove.) 8. Swimming pool equipment and pool equipment. 9. Porch swing 10. Bathroom mirrors 11. Riding lawn mower 12. Fireplace equipment and/or screen 13. Gas lights or BBQ's 14. Above ground pool 15. Hot tub or spa 16. Swag lights 17. Book shelves (Watch shelves where brackets are attached and wood shelves are not.) 18. Special shower heads 19. Special or ornate door knockers 20. Water softener (Check whether leased or owned.) 21. Central vacuum equipment (hoses, nozzles, etc.) 22. Stained glass (Even though usually attached, can sometimes have sentimental value to seller who intends to remove.) 23. Fireplace logs 24. Ben Franklin stove 25. Fireplace inserts (May or may not be attached.) 26. Satellite dish and converter boxes/units. 27. Under counter appliances (Microwave, coffee maker, can opener, radio) 28. Basketball hoop 29. Garage door opener controls

This list certainly does not address all of the possible problems. Be aware of the potential hazards in this area and act with caution, making sure inclusions and exclusions are clear in the contract. Agents are cautioned not to use simple statements in the address section of the contracts stating “per MLS sheet” or “per MLS #XXXX.” These create confusion as to what MLS sheet and when the MLS sheet was run. .) c. "AS-IS" CONTRACTS: Often, listings may be offered in "as-is" condition. This term is unclear, at best. The policy of Century 21 S./G.R., Inc. is to refer the parties to legal counsel for acceptable language to memorialize the “as-is” agreement.

In addition, the Illinois Residential Real Property Disclosure Act is clear that an "as-is" sale does not relieve the seller of the obligation to disclose all material facts of which he/she has knowledge relating to the physical condition of the property. Also, the fact that the parties agree to an “as-is” sale does not change the sellers disclosure obligations to answer the questions on the form completely to the best of their actual knowledge.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 50 SALE CONTRACT NEGOTIATION

The techniques and principles of sale contract negotiation (the "how-to") are covered in the Company's and Board's training programs. Each agent is encouraged to take full advantage of these resources to improve her/his skill in this area vital to success in this business.

Aside from sale contract negotiation techniques, Century 21 S.G.R., Inc. maintains policies which are directed to the legal and ethical aspects of contract negotiation. These are listed below.

a. PRESENTATION OF OFFERS: In accord with the Code of Ethics and License Law, Century 21 S.G.R., Inc. requires the agent to present all offers to the seller until closing and all counter offers to the buyer, regardless of how many offers received and regardless of the order in which the offers were received. The only exception to this would be when the client has provided direction to the contrary. If this is the case, make sure the client’s direction is clearly set forth in writing. Century 21 S.G.R., Inc. urges any agent involved in a multiple offer situation to contact management to review the proper procedures.

The two options listed below are two typical options followed to minimize risk and offer a fair presentation to all parties. Neither the Code of Ethics nor the License Law and its rules require any specific method.)

The Company will always be guided by lawful instructions of the client in any multiple offer situation. While the Company believes that these procedures protect the client, the client may choose to give the Company other lawful instructions. The agent should discuss with the client, whether seller or buyer, the customary procedures for handling multiple offers so that the client may determine whether the client wishes to give the agent or Company different instruction

COMPANY POLICY: In the event of multiple offers on one property, Century 21 S.G.R., Inc. follows a policy of notifying all offers that his/her offer is in competition with other offers as well as giving that person the opportunity to change the offer. The notification shall take place only after multiple offers actually exist and not when the listing agent may have knowledge of other offers being written or possibly being written.

An exception to this policy exists if the seller has a currently effective counter offer in possession of a buyer. In that event, the agent will not disclose the competition to the second or later offeror until the seller has had the opportunity to examine the second offer. This gives the seller the ability to determine whether he/she desires to revoke her/his counter offer to the first offeror to negotiate with the second offeror.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 51 The agent should not reveal any terms of the offer to any other party including expiration time of the offer, price, closing dates, earnest money amounts, financing types, amounts or dates or other terms.

If another agent, whether from Century 21 S.G.R., Inc. or another company, asks the listing agent to "let me know if another offer comes in", Century 21 S.G.R., Inc. has a general policy of not acknowledging such requests. If other offers come in, the agent should advise the client that inquiries of this nature have been made and ask the client whether those requests should be followed up.

If multiple offers exist and the listing agent has written one of those offers, the policy of Century 21 S.G.R., Inc. in such circumstance is that the listing agent may not present any of the offers. In this case, broker (or other Century 21 S.G.R., Inc. agent if management is not available) must be asked to present the multiple offers.

If a listing agent has already presented an offer from another agent and a customer or client of the listing agent asks to write a competitive offer, the policy of Century 21 S.G.R., Inc. is that the listing agent must ask the managing broker of Century 21 S.G.R., Inc. agent to write the offer for the listing agent's prospective buyer. The listing agent's prior knowledge of the first offer could be seen as influential or biased if the listing agent's prospective buyer should be successful in negotiations.

In general, whenever the listing agent has knowledge of an offer presented, or could use information he/she has to the detriment of one of the competing parties, Century 21 S.G.R., Inc. strongly recommends that a third party agent, such as the manager, be appointed to assist in the negotiations.

A final issue regarding presentation of offers regards whether an oral offer must be presented. The REALTOR Code of Ethics and Illinois law require that, unless otherwise directed by the Seller, all offers be presented to the seller.

In accord with agency obligations of disclosure and loyalty and in the spirit of the Code, Century 21 S.G.R., Inc. has a policy of giving the seller client all material and relevant information of which the agent has knowledge. In accord with this policy, if a buyer insists on an oral offer, the company believes that the seller is entitled to that information.

The Company recognizes that such an oral contract is unenforceable under the laws of Illinois. However, it is prudent to tell the seller what the agent knows, that is, an oral offer was made by this party and it is unknown whether the party will ultimately be willing to commit the offer to writing. At this point, a seller may choose to make a written offer to sell and thereby initiate the contract process him/herself.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 52 b. TIMING OF PRESENTATION: Century 21 S.G.R., Inc. also strongly supports and maintains a policy to present all offers and counter offers as quickly as possible. The REALTOR Code of Ethics and License Law provide the standards in this area. License Law uses the term "timely" as to tendering offers and counter offers and the Code states offers must be submitted "as quickly as possible."

The policy of Century 21 S.G.R., Inc. is that these terms are to be interpreted to mean "immediately" or "as soon as humanly possible". As an example, a listing agent's receipt of an offer should immediately generate a telephone call to the owner to determine when the seller is available for presentation of the offer. Once contacted, the seller can then instruct the listing agent as to when to present the offer. The critical point is that Century 21 S.G.R., Inc.believes that the listing agent MUST make a diligent effort to contact the seller immediately upon receipt of the offer - not an hour later, not when the agent finishes lunch, not after the agent shows property.

In the case of a buyer agency, the same principles apply with equal weight. The buyer is the client and must be treated with the same high levels of professionalism as a seller who is a client. These same principles should be adhered to even in the case of a buyer who is a customer and not a client. License Law and the Code of Ethics do not premise delivery of any counter offer to the buyer upon whether there is an agent-client relationship.

This is an extremely simple yet very important risk reduction technique. Every Century 21 S.G.R., Inc agent should consider this of prime importance. The obvious danger in not taking this issue seriously is that the offeree can revoke/withdraw her/his offer at any time prior to delivery of a valid acceptance. Century 21 S.G.R., Inc. does not want to be in a position of defending an action where an offer was withdrawn before a seller was contacted or diligent efforts to contact the seller were not made.

These issues are common, daily events which the agent should learn to handle with skill and ease. The agent's ability to understand and deal with these issues will act as a significant risk reduction method and contribute to an agent's successful practice of the real estate business.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 53 SHORT SALE CONTRACT PROCEDURES FOR LISTINGS

A short sale is to be handled like any conventional sale where Century 21 SGR is the listing firm.

1. Present all offers as commanded by law to the seller. 2. Present only the offer executed by the seller to the bank. 3. Obtain at least 5% of the purchase price as earnest money. 4. Make sure that the contract reflects the fact that the earnest money is due upon “seller’s acceptance” of the contract, not “lender approval.” Do not allow a buyer’s agent to insert the word “acceptance” only with respect to when earnest money is due without changing the contract to read “upon acceptance by seller.” 5. Incorporate Sales Rider 20B into the contract to make certain all pertinent issues are addressed. 6. Do not recommend that a seller accept any contract, which in your informed opinion, will not appraise out. To do so would be a major disservice to your seller, which could propel him or her into a foreclosure, and entangle you and the firm into litigation based on a breach of fiduciary obligation. 7. Accept no contract that does not give the seller at least 120 days for lender acceptance, and an additional 30 days to close. 8. Make certain the buyer presents a valid preapproval, one that has gone through automated and human underwriting. 9. If you are suspicious about the preapproval, insist that the buyer obtain a preapproval through Chase Bank. 10. If all these conditions are not met, keep marketing the property until you receive an offer that does. 11. Do not conserve your energy. Use all of it to help your client out of a terrible situation. 12. If you do not have the skill necessary to effect a short sale, do not take the listing. Refer the listing to another experienced short sale agent within the firm. 13. For a referral as to the most qualified internal short sale agents in the firm, go to Management “only”- not another agent who does not truly know the “short sale batting average” of the agent recommended.

DISCLOSURE OF CONTEMPORANEOUS OFFERS

"Contemporaneous offers" under Section 15-15(b) of the Act shall be offers to purchase or lease on behalf of 2 or more clients represented by the same designated agent for the same real estate parcel or unit that the designated agent knows or has known or has reason to know will be taken under consideration by the owners or owners' representative at the same time. If there are contemporaneous offers from 2 or more clients of a designated agent the written disclosure shall be provided to the clients of the designated agent and referrals made to other designated agents, if requested by the client.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 54

FORMS & SAMPLES

 DISCLOSURE OF CONTEMPORANEOUS OFFERS SAMPLE

| Century21 S.G.R. | Office Policy Manual 2014 | Page 55

DISCLOSURE OF CONTEMPORANEOUS OFFERS

In Accordance with the Illinois Real Estate License Act:

The Broker (Company Name) ______hereby notifies the

Client ______that the Broker's Designated Agent

(Name of Designated Agent), ______is acting as Designated Agent for

More than one prospective buyer or tenant who are making or preparing to make contemporaneous offers to purchase or lease the property located at ______When a conflict of interest situation arise wherein the Broker' s Designated Agent is representing two clients, who have opposing interests, in the same transaction in accordance with the Illinois Real Estate License Act, the Broker must serve a disclosure of Notice of Contemporaneous Offers to both Clients.

The Broker may appoint new Designated Agents to represent the interest of the Clients or the Client may elect one of the following by initialing the appropriate selection below: (Strike out the selection which you do not wish to apply)

( ______) ( _____ ) I/we wish to remain with the Designated Agent identified above, notwithstanding that another client of the Designated Agent may be making a contemporaneous offer to purchase or lease the real property identified above. I/we make this selection with full understanding that during the negotiating process that the Designated Agent cannot act as an advocate for either us or the other client involved in the presentation of this contemporaneous offer. OR ( ______) ( ______) I/we wish to be referred to another Designated Agent who will act as agent for us in the making of an offer to purchase or lease the real property identified above.

Signed by: ______Date ______(Designated Agent)

Signed by: ______Date ______(Buyer or Tenant)

Century21 S.G.R. | Disclosure of Contemporaneous Offers | Aug 2012

CHAPTER TEN: RISK REDUCTION

| Century21 S.G.R. | Office Policy Manual 2014 | Page 56 RISK REDUCTION PROCEDURES

Century 21 S.G.R., Inc. advocates and encourages the concept of risk reduction. The strong majority of claims filed against real estate agents and brokers allege some misrepresentation or fraud. The trend of the law in the real estate industry is for more and more disclosure. Accordingly, Century 21 S.G.R., Inc. has the following policies regarding risk reduction and disclosure.

COMPLIANCE WITH ALL LAWS, RULES AND REGULATIONS

As a broker of Century 21 S.G.R., Inc. each person assumes the obligation of strict compliance with all laws, rules and regulations which govern real estate licensees in the State of Illinois.

COMPLIANCE WITH THIS POLICY MANUAL

As an agent of Century 21 S.G.R., Inc. each person agrees to comply with all policies as stated in this manual and its additions, changes and amendments as from time to time published by management of the company. Failure to comply with the policies herein subject the agent or staff member to disciplinary action which may include termination of association with the company.

PHYSICAL CONDITION OF THE PROPERTY

In accord with the REALTOR Code of Ethics, the Illinois Real Estate License Act, the License Law rules and Illinois common law, the policy of Century 21 S.G.R., Inc is to disclose to all appropriate parties any known material physical conditions or defects of a property which are latent or not readily observable. This applies whether Century 21 S.G.R., Inc. is the listing agent, or buyer's agent.

Physical conditions on the property may include water in the basement, foundation cracks, drainage problems, defects in any of the major systems of the property (electrical, plumbing, heating, cooling), environmental conditions on or near the property, roof problems, etc

PSYCHOLOGICAL "STIGMAS" ON THE PROPERTY

These include whether a homicide or other felony, or a suicide occurred on the premises or if an occupant or former occupant of the real property has or had AIDS or any HIV positive condition. The "psychological impact" statute in Illinois provides that no cause of action may be brought against a real estate agent or broker for failure to disclose to a buyer or other transferee of real property that the real property was a psychologically impacted real property. Although this statute protects an agent for failure to make a disclosure, it does not prohibit disclosure. Likewise, the Code of Ethics does not require disclosure in situations where state law defines these factors as not material. (As mentioned above, Illinois statutes do provide that these facts are not material.)

| Century21 S.G.R. | Office Policy Manual 2014 | Page 57 The 1988 amendment to the Fair Housing Act includes a person with AIDS, HIV, or other related illness as a handicapped person. The Act prohibits an agent from disclosing that the occupant or the former occupant of a dwelling suffered or suffers from AIDS. Therefore, it is the policy of Century 21 SG.R., Inc. that an agent should not make an unsolicited comment that the current or former occupant has or had AIDS. Further, if an inquiry is made by the buyer as to whether the occupant has AIDS, the agent shall not respond to such a question. The agent should state to the effect "it is the policy of Century 21 S.G.R., Inc. not to answer that type of question one way or the other since it is not material and may violate the Fair Housing Act." If the buyer persists, the agent shall state, "if that information is important to you, you must determine that information for yourself."

Because of the practical problems of the inevitable "disclosure" of these factors (often by the neighbors), the policy of Century 21 S.G.R., Inc. is to discuss with the seller-client the inevitability of this disclosure and to recommend disclosure of psychological factors other than AIDS, HIV, or related illnesses that may have an impact on a purchaser's decision to buy. Recent violent crimes or suicides are specific examples of such events. If, after this discussion, the seller-client instructs the company not to disclose these factors, the company will comply with such request and rely on the protection of the Illinois statute.

If an agent of the company represents the buyer and has knowledge about a stigma that does not relate to an HIV/AIDS situation, the buyer’s agent should disclose the information to the buyer client in serving the buyer client’s best interest. The agent should have actual knowledge. Also, buyers can be directed to the Illinois State Police website for a list of registered sex offenders.

DOCUMENTATION OF DISCLOSURE

As is apparent, Century 21 S.G.R., Inc. advocates full disclosure in appropriate circumstances. However, all the disclosure in the world does no good if it cannot be proven. While it would be ideal to have every single disclosure as to every material item disclosed to the parties in writing with their acknowledgment of the disclosure, such is not usually possible.

It is the policy of Century 21 S.G.R., Inc. that a copy of the Residential Real Property Disclosure Report be put in each file. In addition, the agent should document in his/her own personal notes and files each item which is disclosed in a transaction.

This simple policy can reduce risk and potentially save many thousands of dollars. It assumes that the agent has a regular, systematized method of organizing and keeping files. This is vitally important to a good documentation procedure.

While the Company does not require an agent to use any one method, it does provide standardized files/folders/envelopes for agents to use in each transaction. Agents are strongly encouraged to use this organization system as it has been developed to keep track of details, act as a transaction checklist and risk reduction method.

Disclosure is great, but documentation of the disclosure is the glue that seals the cracks.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 58 USE OF EXPERTS & RECOMMENDATIONS

Century 21 S.G.R., Inc maintains a strong policy that an agent not go beyond her/his area of expertise regarding a transaction. The company strongly recommends that an agent advise the use of an expert in situations where appropriate. For example, if questions arise with a buyer about the adequacy of the electrical system, the agent should advise that a building inspector, engineer or licensed electrician be consulted.

However, an equally strong policy exists in NOT recommending any particular inspector, engineer, electrician or other expert. While advising that AN expert be used is a good risk reduction technique, the benefits of this technique may be lost if a specific expert is recommended. Recommendation of a specific expert could lead to liability if the expert fails to do his/her job and the agent was negligent in recommending that person.

The policy of Century 21 S.G.R., Inc is to give the names of three experts in each field whenever asked for a recommendation. Do not fall into the trap of responding by recommending the expert you really favor. The agent should be firm in having the customer/client make the choice.

Some agents have found a helpful tool in keeping several sample reports from various building/mechanical inspectors, engineers, roofers, etc. When the customer/client asks for a recommendation, the agent gives the customer/client the samples and suggests that they choose the style and cost of the expert which fits their style and needs the best.

A related issue is ordering the report. The policy of Century 21 S.G.R., Inc. is that the agent should not order the report if at all possible. The Company recognizes that certain situations require the agent to place the order, but, in general, the agent should have the customer/client place the order. This removes the Company and agent from any involvement in the selection process and reduces the liability of possible negligence in "recommendation" of an expert.

TRAINING

As stated in other parts of this manual, training and education are integral parts of any risk reduction and professionalism program. All agents are expected to complete the company's initial training program and are strongly encouraged to take advantage of company, board and association education programs.

USE OF LEGAL COUNSEL

Whenever an agent believes she/he requires legal assistance, the managing broker should be contacted. The company has legal counsel for appropriate legal questions and problems. In addition, the Illinois Association of REALTORS® provides a free Legal Hotline for legal educational information for those registered by the company or the designated broker. The earlier a legal question or problem is brought to the attention of management, the earlier the problem can be solved. The Company's position is that wisely spent legal fees early in a problem can save many thousands of dollars if a formal complaint or lawsuit arises.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 59

ERRORS AND OMISSIONS INSURANCE

Century 21 S.G.R., Inc carries errors and omissions insurance in the amount of $1,000,000.00 with a deductible of $5,000.00. All agents and staff of the Company are covered by the policy. The policy is paid by the agents. The $5,000.00 deductible fee will be borne by the company and the agent in proportion to their commission split.

Errors and omissions insurance generally cover the negligent acts of the insured. It does not cover all possible damages for which the Company could be liable. For example, no errors and omissions insurance covers punitive damages or managing or selling properties you own. For other exceptions, contact the managing broker for a copy of the policy.

Errors and omissions insurance does cover defense costs, that is, the legal fees involved in defending a claim against the Company or agent subject to any pertinent deductible. This is very valuable coverage.

The policy of Century 21 S.G.R., Inc. is that each agent must notify the managing broker as soon as the agent is aware of a possible claim against the agent/broker. "Possible claim" means the potential of a disagreement which could lead to a lawsuit against the Company or agent. It is only in this way that the Company can properly invoke the errors and omissions coverage, if necessary.

ARBITRATION COSTS

If an Arbitration or ethics case is filed against the company and the agent, all expenses and costs associated with defending the case will be borne between the company and the agent in proportion to their commission split. In other words, if the agent and the company are on a 65%/35% commission split with the company and the costs and expenses equal $10,000.00, the company will pay $3,500.00 and the agent will pay $6,500.00

The initial cost to file or defend an arbitration case, normally about $380.00, will be proportionately borne by the company and the agent also in proportion to their commission split.

COMPLAINT HANDLING PROCEDURES

One of the simplest and most cost effective risk reduction methods is a good complaint handling process. Accordingly, Century 21 S.G.R., Inc. establishes the following procedures for handling complaints. a. If the complaint comes to an agent involved in a transaction, the agent will initially be the primary contact person to handle the complaint with management assistance. At a minimum, the agent should immediately notify the managing broker of the complaint. The managing broker will then make a determination as to whether the agent should

| Century21 S.G.R. | Office Policy Manual 2014 | Page 60 continue to handle the complaint or whether the complaint should be handled by a designated management representative. b. If the complaint comes in without specifying an agent, the managing broker will handle the complaint. If a specific management person is requested (such as "I want to speak to the President!"), the person answering the call should courteously direct the call to the requested person, if available, or the broker (sales manager) in the requested person's absence. The caller should ALWAYS be assisted in some way. The person taking the call should not say "Oh, she isn't here right now." or "You'll have to call him later." or "Please call her office." It is very important to handle an aggravated or upset caller with the utmost courtesy and care. c. Whoever takes the complaint, the key factor in handling the call is to LISTEN to the caller's complaint. The most appropriate and helpful thing the call handler can do is give the person filing the complaint a full and fair airing of his/her grievance. Many times, simple listening to the complaint does much to alleviate the caller's frustration. Sometimes, being listened to is all the person really wants. ACTIVE LISTENING is critical. d. Usually, the most successful way to handle the initial complaint call is to validate the caller's concerns. In general, it is best not to challenge the caller or become defensive. GET THE FACTS!! Simply try to get all necessary information from the caller's perspective, even if the complaint handler knows it may not be 100% accurate. Remember to document the conversation in writing. Make notes or write a memo about the conversation as soon as possible. e. Usually the call can be ended by assuring the caller that the matter will be investigated. The complaint handler should tell the caller what he/she can expect. For example, "Mr. Smith, I would hope you understand that I need to do some research. I will look into the matter, discuss it with Suzie and get back to you by Tuesday." The caller should always be told what the complaint handler will do and by when. THEN DO IT!!

| Century21 S.G.R. | Office Policy Manual 2014 | Page 61

CHAPTER ELEVEN: PENDING CONTRACTS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 62 PENDING PROCEDURES

Upon the complete execution of a contract by the buyer and seller, a complete pending file must be turned into the accounting department within 24 hours.

This rule exist for a variety of reasons including but not limited to the facts that a company needs at all times to project an accurate income stream, to make certain that the contract conforms to law and regulation, and to ensure that any earnests money given with the contract is deposited into a federally insured account by the next business day after the complete execution of the contract. Failure to comply with the earnest money regulation places the firm’s license in jeopardy. Form this date forth any agent turning in a file after the execution date noted on the contract will incur a $200.00 fine.

ESCROW ACCOUNTS

The Real Estate License Act of 2000 Section 1450, 175 Special Accounts: The Sponsoring Broker (agent) shall provide a receipt to the payer of any payment constituting escrow funds and shall retain a copy of the receipt. Simply put, this means you must give the other agent a receipt of earnest money received and give a copy to the accounting department so it can be attached to the ledger. MAKE SURE, WHEN REPRESENTING A PURCHASER, AND THE MONEY IS HELD BY ANOTHER BROKER, THAT A COPY OF THE EARNEST MONEY CHECK(S) IS PLACED IN THE OFFICE FILE.

Time of deposit of escrow moneys: All earnest money accepted by the sponsoring broker shall be placed in the sponsoring broker’s escrow account not later than the next business day following the transaction. A transaction exists once an accepted real estate contract is signed, or a lease agreed by the parties. If such funds are received on a day prior to a bank holiday or any other day the bank or savings and loan association is closed, such funds shall then he deposited on the next business day the depository is open. Make sure you deliver the earnest money checks to the accounting department no later than 2:00 p.m. on the date the money needs to be deposited. The accounting department needs to prepare the paperwork and this money needs to be deposited by 4:00 p.m. Deposits made after 4:00 p.m. are not recorded on the banks records until the next business day and may be perceived as an infraction of Illinois State License Law if audited by the Department of Financial and Professional Regulation. This is extremely important. Also, do not accept a facsimile copy of an earnest money check and allow your seller to accept the contract. Make sure you actually have the earnest money before you allow your seller to sign and accept the contract.

LATE EARNEST MONEY

Remember when a contract is received on a company listing, to promptly bring the file to the office with the earnest money. To bring in earnest money late is a minimum $500.00 fine and grounds for immediate dismissal.

Fine for incomplete or incorrect Real Property Disclosure, Radon Disclosure or Lead- Based Paint Disclosure and late earnest money.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 63 FINES FOR NON-COMPLIANCE

Below are the fines imposed by the company for certain types of behavior concerning company files. This Policy Manual supersedes other Policy Manuals and anything stated here which conflicts with other Policy Manuals is superseded by this Policy Manual.

When a file is turned into the office it is promptly reviewed for compliance with the Illinois Department of Financial and Professional Regulation, which oversees the Real Estate Act, by the Quality Control Department. If the file is complete this will be noted on the jacket and filed away in the Listing or Pending drawer. If there are missing documents or incomplete disclosures, this will be noted on the jacket. Emails will be sent to the agents advising them to rectify the problems as soon as possible. A phone call may also be placed advising the agent what needs to be done to bring it into compliance with Illinois Real Estate Law. Below are fines stated in the Company Policy Manual for not rectifying the problem in a timely manner.

a. If the Lead paint disclosure, real property disclosure, mold disclosure or radon disclosure are missing or incomplete. the agent will be given 7 days to rectify the problem. If not rectified in 7 business days a $50.00 fine will be imposed. If not rectified in 14 business days the fine will increase to $100.00. If the S.G.R. office staff has to intercede to rectify the problem the fine will increase to $200.00.The fines will be taken from the commission earned on the transaction. Remember, one violation of the E.P.A. standard for the lead based paint disclosure can result in a fine of $11,000.00. The individual agent would be responsible to the E.P.A. for these fines; the fines imposed by the E.P.A. are $11,000.00 per transgression.

b. There is a $500.00 fine imposed for turning in earnest money late.(The state can suspend and/or terminate an office’s license for a pattern of misconduct with earnest money violations). If the agent turns in earnest money late a second time they are subject to immediate termination. The initial earnest money must be turned into the office the next business following acceptance of a contract. The earnest money must be accompanied by the file dealing with the transaction. A W- 9 must accompany the earnest money check if it is going into an interest bearing account.

c. If a “Dual Agency” situation is handled improperly the agent is subject to immediate termination. Most small infractions can be remedied. A mishandled “Dual Agency” situation cannot be rectified.

d. All Listing Agreements must be promptly turned into the office for signature by the Managing Broker. After signature by the Managing Broker the agreement signed by the Seller and the Managing Broker must be returned to the Seller within 24- hours in order to have a valid Listing Agreement. The new Listing must be noted on the board located in the kitchen of the South Loop office. There is a $100.00 fine for the infraction of not turning in the Listing Agreement immediately.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 64 e. Any sales contract must be turned into the Accounting Department, with initial earnest money, if we are the Listing Company, no later then the next business day following acceptance of a contract. This is Real Estate License Law and also necessary for Century 21 S.G.R., Inc. to reconcile their records. If this rule is not complied with there is a $300.00 penalty deducted from the agent’s commission at the time of closing. The sale should be noted on the board located in the kitchen at the South Loop office.

THESE ARE NOT MEANT TO BE HARSH MEASURES. AGENTS MUST WEIGHT THE PENALTIES IMPOSED BY THE ILLINOIS DEPARTMENT OF FINANCIAL REGULATION AGAINST THESE MINOR FINES. MANY AGENTS JUST DO NOT SEEM TO UNDERSTAND THAT THE DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION IS A VERY STRICT BODY AND WILL NOT TOLERATE INFRACTIONS OF THE ILLINOIS REAL ESTATE ACT. YOUR REAL ESTATE CAREERS ARE AT RISK HERE.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 65

FORMS & SAMPLES

 CONTRACT PEDING INFORMATION SAMPLE  ESCROW ACCOUNT ENVELOP SAMPLE

| Century21 S.G.R. | Office Policy Manual 2014 | Page 66 CONTRACT INFORMATION Enclosed Radon: Y/N Heat: Y/N Disclosures: Lead: Y/N Mold: Y/N Property Y/N Buyer Broker Y/N

Contract Date: Acceptance Date: Contract Price:

Closing Date: Property Type: MLS#:

Property Address:

How did you get this lead client? (Seller): SOI / Previous Clients / Referral / Lead Router / Walk-In / Conventional / Short Sale / REOs / Others. Please choose: How did you get this lead client? (Buyer): SOI / Previous Clients / Referral / Lead Router / Walk-In / Conventional / Short Sale / REOs / Others. Please choose:

Seller Name: Phone #: Address: Email:

Buyer Name: Phone #: Address: Email:

Selling Agency:

Company Name: Company MLS ID#: Agent Name : MLS ID # : Address : Phone # : Fax # : Email:

Listing Agency:

Company Name: Company MLS ID#: Agent Name : MLS ID # : Address : Phone # : Fax # : Email:

Buyer's Attorney: Seller's Attorney: Name : Name : Phone # : Phone # : Email: Email:

Mortgage Company : Officer's name : Financing (Cash / V.A. / Conventional / FHA): Loan Commitment Letter Yes / No: Phone # : Email:

Earnest Money: Received Date: EM Held by: Additional EM Due: Received Date: Total EM: Listing Office: please drop off the EM asap Selling Office: please give SGR copy EM checks

CHAPTER TWELVE: CLOSINGS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 87

CHAPTER TWELVE: CLOSINGS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 67 CLOSING PROCEDURES

Our company policy is that a Century 21 S.G.R., Inc associate must attend every closing. If an agent is unable to attend it is the agent’s responsibility to find a substitute to attend on your behalf. This is not only a courtesy to our clients but necessary to avoid closings becoming complicated.

1. Make sure the file is entirely filled out and contains all the necessary disclosures. Copies of all correspondence between the buyer’s and seller’s attorneys should be contained in the file.

2. Make sure a final walk through is scheduled 72 hours in advance to avoid confusion at the last moment. The agent must accompany the parties to this final walk through. This will help to avoid confusion and problems at the last moment.

3. Notify the accounting department as soon as you know a closing is scheduled. This should be done at least 7 days in advance of the closing date.

4. Attend the closing. If you cannot attend the closing it is your responsibility to find another agent to go in your behalf. If you do not find another agent to go on your behalf, the office will attempt to find an agent to go for you. For this, you will be charged $100.00, and this will be paid to the other agent from your commission. If a staff member must go to the closing, $200.00 will be deducted from your commission check. Return from the closing as soon as possible. Bring two RESPAs and the closing statement signed by the seller if you are the listing agent. Bring all checks as soon as possible so you may receive your commission within two business days of receipt by the office. Check all amounts given to the parties against the forms you receive. They should balance or there is a good chance the title officer made a mistake.

5. Obtain a new address for your client and be sure you have their email address for the Quality Service Survey.

6. If you are the Listing agent bring all keys and garage door openers to the closing.

7. Notify the front desk to remove the sign if you are the Listing agent.

DRY CLOSINGS

A Dry closing occurs when all documents are executed but the lending institution does not disburse the funds. The agent should receive a RESPA and closing statement signed by the Seller or the Seller’s attorney and return these documents to the Accounting Department. The agent must then diligently follow up, not only to obtain payment, but to deliver keys, garage door opener etc. if acting as a Listing agent. Make sure to pick up funds from the title company. Do not wait for the title company to mail the check to the office.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 68 NOTIFICATION OF A CLOSING

Make sure you notify the Accounting Department 7 Days in advance of a closing.

When you are a Buyer’s agent, you would hopefully, get your commission check at the closing. This needs to be returned to the office’s Accounting Department promptly with the RESPA and closing statement signed by the seller or the seller’s attorney. The office will disburse payment of commission to the agent in accordance with company policy as soon as possible.

If you are the Listing agent you must obtain all documents from the accounting department prior to attending the closing. This will include our closing statement, check for interest on earnest money, if earned, and co-op commission check if we are holding sufficient funds in escrow to cover both the Century 21 S.G.R., Inc. commission and the commission of the co-op Broker. The agent must obtain a copy of the RESPA and the closing statement signed by the Seller or the attorney for the Seller.

If the office becomes aware that a closing is taking place and no agent is attending the office will send a staff member to attend the closing. The charge associated with this will be $200.00. This amount will be automatically deducted from the sales associate’s commission. Remember, there are many agents in the office willing to attend a closing for less than $200.00.

COOPERATION AND COMPENSATION POLICY

SGR cooperates and compensates cooperating brokers who are members of the MLS. In all cases before entering into a listing agreement, the listing agent must disclose to the seller:

1. The company’s policy regarding dealing with cooperating agents as set forth above and the compensation offered. 2. Any potential for Century 21 S.G.R. to be a disclosed Dual Agent. 3. Any interest the agent has in the property must be disclosed. This includes listing agreements where the sales associate owns the property or when the associate is purchasing the property. The associate must disclose he/she is a licensed real estate broker.

DISCOUNT AGENT POLICY WHEN SELLING PERSONAL RESIDENT OR INVESTMENT PROPERTY

Century 21 S.G.R. Discount Program for Sales Associates who sell or buy their personal residence or investment property.

All sales associates with the company for a minimum twelve (12) month period, are eligible for discount on listings and purchases of their personal residences or investment properties. To qualify for the investment property discount, the sales associate must be a Co-owner or Sole Proprietor for the property. This discount will be paid as an additional non-taxable 50% of the company dollar on the sales associate’s primary residence and 25% of the company dollar for investment properties, on the applicable side of the transaction.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 69 Sales associate must be with Century 21 S.G.R. at the time of the closing to qualify for the discount. Sales Associates, who conduct business as developers of properties for resale, will not be eligible for this discount. This discount can be used once in any twelve (12) month period. This is not one time in a calendar year period but one time in any twelve month period. For example, if an agent purchases a property in June 2006 they would not be eligible for the discount again until June 2007.

COMMISSION POLICIES

Century 21 S.G.R., Inc. is a franchise operation and 8% of any commission earned must be taken off the top before the agent receives his/her share of the commission. (This incorporates 6% franchise fee and 2% National Advertising Fee. See Commission Addendum Agreement for specific agent commission split.

If a sales associate earns a bonus on a sale or earns money by doing some consulting work the money earned will be split in the same proportion as the agents normal split with the company

COMMISSION CHECK DISBURSEMENT

All commissions due Century 21 S.G.R.Inc. Must be received prior to the agent’s check being disbursed. This policy is administered as follows and check availability will be as follows:

I. Listing Side: Commission will be paid when the following items are in order: a. On the Listing side return from closing with two RESPA statements, and a closing statement signed by the Seller or the Seller’s attorney.

II. Selling Side: On the selling side commission will be paid when the following items are in order: a. Two RESPA statements. b. Signed Seller’s closing statement. c. Listing Brokers commission statement.

 If you have any problems or questions please contact the Accounting department.

No commission checks will be issued if the agent fails to clear all outstanding invoices with Century 21 S.G.R., Inc. The check will be issued three business days after receipt of all required documents.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 70

CHAPTER THIRTEEN: REFERRAL POLICIES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 71 GENERAL REFERRAL POLICIES

Because referrals are an important part of our business, the company makes an active effort to retain all referrals.

Referrals or request for another city should be forwarded to the Relocation Director. If he/she is unavailable, then the clerical staff will take the information. If all of the above are unavailable, the floor time person should take the information and immediately contact the Relocation Director. The only time a floor-time person should follow through with a referral is the unusual circumstance that an immediate called is required to the referred party. If you called in a referral to another company you will understand why these procedures are so important. Referrals that come from a company generated lead and terminate in a closed transaction will be assessed a 20% referral fee against the agent’ commission.

OUTBOUND REFERRALS:

Outbound referrals are one that originates from any Century 21 S.G.R., Inc agent or the relocation department that may result in either a sale or a listing to another Century 21 or non Century 21 company. All referrals are processed through the Relocation Department. Unless you request a specific real estate office the Relocation Director will decide which company receives the outgoing referral.

INBOUND REFERRALS

Incoming referrals may result from another real estate office, a relocation management company, a local employer or other sources. The referrals are processed through the Relocation Director and are assigned to qualified sales associates by the Relocation Director. An incoming lead can result in a sale or listing for the respective sales associate who is rewarded the referral.

Incoming referrals are not regarded as floor calls. The sales associate receiving the call should transfer the call to the Relocation Director. The Relocation Director assigns the agent who follows up with the referral.

A company generated lead which is assigned to an agent is charged a 20% referral fee for the lead. This amount will be deducted from the associate’s commission at the time of closing.

Inbound referrals from the agents’ sphere, which is not company generated, is not charged a 20% referral fee. The referral fee is charged only to Century 21 S.G.R., Inc generated leads such as a referral from another 21 office.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 72 INTRA-OFFICE REFERRALS:

At times you may have a client who requires special attention in which you have no expertise. An intra-office referral will provide the best service to the client and contribute to the company team spirit. All referrals between sales associates must be in writing.

The referral fee is to be worked out between the agents involved. The referral fee will be a specific dollar amount of the commission received. The referral fee will not be part of the dollar amount due the company. The referral fee will be based on the commission of the agent doing the actual work, not the referring agent.

Finally, if a client generated from a Century 21 referral must be transferred to another agent, no compensation will be paid the first associate.

FLOOR TIME LEAD REFFERALS

Going forward, we want to ensure that the public is receiving exceptional service, and to increase our floor conversion rate dramatically. To effect these goals, we ask all agents signing up for floor to assist us in implementing this protocol:

1. Show up on time for all floor shifts. 2. Completely fill out the Lead Contact Appointment Form and immediately hand it to the Front Desk. (For West Loop agents, please scan and email the form to the South Loop Front Desk.) Obtain the lead’s name, phone number, purpose of inquiry, and status of lead. If you do not want the lead, indicate that in the appropriate box on the lead contact form, so that it can be immediately reassigned. 3. Be aware that Annette Shelton, as a customer service representative of the company, will contact each lead within three (3) days after the initial contact to ascertain their level of customer satisfaction, and to determine if any further assistance is needed or wanted. 4. From this call, a determination will be made as to the status of the lead: a. The assigned agent is working with the lead. b. The assigned agent is not working with the lead. c. The lead has no desire for any further contract from the agent or the office. d. The lead has a desire for service from the office, in which case a new agent will be reassigned.

We must ensure that all customers are served, whether they are searching for a $1,000 rental or a $500,000 condo. This is a moral duty and a business imperative. We must guarantee that exceptional service is being offered to all that seek our assistance.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 73 LEADROUTER REFERRALS

1. All leads will be vetted by management to weed out solicitations, testers, and other questionable inquiries. The institution of this vetting procedure was caused by the serious mishandling of a Section 8 inquiry and repeated failures to respond to sellers’ inquiries in a timely manner or at all. 2. Leads will be directed to agents based on the areas they serve and the times when they are available. 3. An agent receiving a lead will be given “5 minutes” to acknowledge receipt of the lead. If Management doesn’t receive a text or email acknowledging receipt within “5 minutes”, the lead will be IMMEDIATELY reassigned. 4. Century 21 Corporate’s findings clearly show the conversion of a lead into a sale is most directly dependent upon a response within 15 minutes of the inquiry. SGR’S tracking of agents conversion rates supports this finding.

Criteria for Lead Router Team Members  Training o Completion of 2.0 and 3.0 training  Conversion Rate o At least 3% of total leads received from the time an agent joins lead router to four months hence on an on-going basis with the initial termination point then serving as the new starting point.

Background of System  Lead Router is a lead generation system that directs all inquiries on the firm’s listings to team members.  It offers team members an opportunity to convert buyers inquiries into sales.  When a team member accepts a lead, he or she is representing their fellow agents as well as the firm. It’s critical that each member demonstrates the skill to handle and convert inquiries.

What is Needed from You  Zip codes from which you will accept leads.  Days of the week and times of the days when you are available to accept leads and acknowledge receipt of leads within 5 minutes.

Referral Fee 15% referral fee will be charged to agent per closing to defray cost of the system.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 74 LeadRouter Responses

My typical response when only an email address is available:

Dear Jim,

Thank you for your inquiry on this property, please feel free to contact me anytime to set up a viewing. I can also show you the other unit for sale/rent in the building to help you better understand the value.

I look forward to hearing from you soon.

My typical response when a number is available:

Hi Jim, this is Steven Powers with Century 21. I just received an online inquiry from you about the property at 1161 W Madison. This property is actually already under contract but there are two other units just like it that are on the market, would you like to see those? (no, I just wanted that one). Ok, what Im going to do is set up an automated search that runs daily for you, just in case it comes back on the market we will know right away.(ok that sounds great...do you work in this area? are you available at night on the weekends?) Well I work all over the city, but I live in the West Loop and I try to do most of my business here.

If I get that far in a phone conversation, I usually get at least one showing out of it. I hope this helps.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 75

FORMS & SAMPLES

 LEAD CONTACT/APPOINTMENT FORM  IMPLEMENTATION OF LEADROUTER SYSTEM FORM

| Century21 S.G.R. | Office Policy Manual 2014 | Page 76

LEAD CONTACT/APPOINTMENT FORM

ASSIGNED TO: (AGENT’S NAME) ______

DATE: ______TIME: ______

PART 1: NEEDS TO BE FILLED OUT BY FLOOR AGENT.

SUBJECT PROPERTY: ______MLS# ______

NAME OF LEAD: ______

____ WANT TO BUY ____ WANT TO RENT ____ OTHER ______

PHONE: ______EMAIL: ______

ADDRESS: ______

NOTE: ______

1st Time Homebuyer: YES / NO Investor: YES / NO Short Sale: YES / NO Foreclosure: YES / NO

SOURCE: ____ SIGN ____ REFERRAL ____ OPEN HOUSE ____ WALK‐IN

INTERNET: ____ CENTURY21SGR.COM ____ CENTURY21.COM ____ TRULIA.COM

____ CHICAGOTRIBUNE.COM ____ CRAIGLIST.COM ____ REALTOR.COM

____ ZILLOW.COM ____ LOOPNET.COM

____ OTHER: ______

PART 2: NEEDS TO BE FILLED OUT BY FLOOR AGENT.

APPOINTMENT SET: DATE: ______TIME: ______

IF NO APPOINTMENT, WHY? ______

______

I DO NOT WANT THIS LEAD; PLEASE REASSIGN! (Check box if you want the lead reassigned.)

THIS FORM MUST BE RETURNED TO THE FRONT DESK AT THE END OF EVERY SHIFT! MIMI – FORMS – LEAD CONTACT & APPOINTMENT FORM 9.23.2013

Implementation of Lead Router System

All enrolled in Lead Router hereby agree to comply with the following rules:

1. To have or obtain a PDA, Smartphone, or Blackberry with internet connection in order to respond to email leads immediately. 2. To pay the company a 15% referral fee to abate the cost of the system, the generation of leads, and its administration. 3. To attend two training sessions to learn the system. 4. To have a conversion rate of at least 3% per quarter, as required by C21 Corporate, for the office to remain part of the Lead Router system. (Any office with a conversion rate of less than 3% will be removed from Lead Router in 2013.) 5. To acknowledge receipt of leads within 5 minutes of the office sending them to you.

I, undersigned, hereby agree to the following rules.

______Agent Signature Date

______Print Name Date

______Century 21 S.G.R., Inc. Date Authorized Representative

CHAPTER FOURTEEN: RECORD RETENTION & DESTRUCTION

| Century21 S.G.R. | Office Policy Manual 2014 | Page 77 SCOPE

This Record Retention and Destruction Policy applies to all records generated in the course of Century 21 S.G.R., Inc. (the Company)’s operation, including original documents, reproductions, and electronic documents.

PURPOSE

The purpose of this section is to ensure that that necessary records and documents of the Company are adequately protected and maintained and to ensure that records that are no longer needed by the Company or are of no value are discarded at the proper time. This policy is also intended for the purpose of aiding agents/employees of the Company in understanding their obligations in retaining electronic documents—including e-mail, Web files, text files, sound and movie files, PDF documents and all Microsoft Office or other formatted files.

1. The information that is covered in this section includes, but is not limited to, physical records of the Company, electronic documents of the Company, including but not limited to information that is either stored or shared via electronic mail or Instant Messaging technologies, Web files, text files, sound and movie files, PDF documents and all Microsoft Office or other formatted files.

2. All the Company agents and employees should familiarize themselves with the retention topic areas that follow this introduction.

3. This section is intended to supersede all existing document retention policies and ensure that retention and disposal practices are consistent throughout the Company.

4. This Policy is further intended to avoid or limit unnecessary accumulation of Email Messages, including attached documents and materials that are not needed (or no longer needed) for business, regulatory or other reasons.

5. Federal and state laws require the Company to maintain certain types of records for particular periods. Failure to maintain such records could subject you and the Company to penalties and fines, obstruct justice, spoil legal evidence, and/or seriously harm the Company’s position in litigation.

6. Unless you have been notified by the Company, if you believe that (1) such records are or could be relevant to any future litigation, (2) there is a dispute that could lead to litigation, or (3) you or the Company is a party to a lawsuit, you MUST PRESERVE such records until the Company’s legal counsel determines that the records are no longer needed.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 78 DEFINITIONS

1. Retained Electronic Data (hereafter, Electronic Data): Any and all information, in whatever format, collected and/or stored by the Company. This includes, but is not limited to, demographic, financial, transactional, marketing and related information. This could include database records, web pages, emails, and voicemail to name a few. It does not include information not stored, for example live phone calls.

2. Metadata: Information about the Content, not the Content itself. For example, records relating to who placed a call to whom. That is, not the content of the call, but only the information about the call, like when it occurred and the party’s numbers involved. Another example is records relating to web site visits. That is, not the content of those web sites, but data related to the access, when it took place, what Internet addresses were involved, etc.

3. Email Messages: Text documents which are created, stored, and delivered in an electronic format. As such, Email Messages are similar to other forms of communicated messages, such as correspondence, memoranda, and circular letters. For purposes of this Policy, all references to Email Messages shall include any corresponding attachments.

4. Contracts: Whether a hard copy or electronic, will include all purchase contracts, leases, listing or representation agreements with a seller or landlord and representation agreements with a buyer or tenant.

ADMINISTRATION

Included in this section is a Record Retention Schedule that is approved as the initial maintenance, retention and disposal schedule for physical records of the Company and the retention and disposal of electronic documents. The managing broker is the employee of Century 21 S.G.R., Inc. in charge of the administration of this policy and the implementation of processes and procedures to ensure that the Record Retention Schedule is followed. The managing broker is also authorized to: make modifications to the Record Retention Schedule from time to time to ensure that it is in compliance with local, state and federal laws and includes the appropriate document and record categories for the Company; monitor local, state and federal laws affecting record retention; annually review the record retention and disposal program; and monitor compliance with this Policy.

RETENTION REQUIREMENTS

1. All Records and Electronic Documents must be maintained in accordance with applicable laws and regulations (and contractual provisions) governing record retention.

2. The Record Retention Periods (see the Record Retention Schedule) apply regardless of the record’s medium or method of transmission; the content of the record determines how long the record will be maintained.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 79 3. Employees are responsible for classifying records, including Email Messages they send or receive according to the content. The sender of the Email message is responsible for retaining the message or information, unless the Sender is outside the Company, in which case the recipient is responsible. The sender should use the subject lines on the Email Message to help both the sender and the recipient identify and file messages.

4. Agents/Employees should refer to the Record Retention Schedule for information concerning the minimum retention periods for specific types of documents.

5. Email messages should not be destroyed before the prescribed Email Retention Period has expired. Email messages shall not be retained for longer than the prescribed period without first contacting the managing broker. Agents/Employees should not selectively delete or discard Email Messages or other electronically transmitted or stored documents that would normally be retained for a longer period of time because they believe that the documents might be harmful to any agent/employee or to the Company.

6. The Administrator will review the appropriateness of the retention periods periodically and recommend modifications, as necessary, to ensure regulatory compliance.

7. Any exceptions to this Policy may be made only after consultation with legal counsel. Any agent/employee who believes that circumstances warrant such a deviation should promptly contact his or her managing broker.

POLICY REVIEW

This Policy will be reviewed every three years, or earlier as necessary to ensure conformity with the applicable laws and regulations.

REPORTING

Concerns regarding adherence to this Policy in any given instance should be reported to the managing broker. Century 21 S.G.R., Inc. is committed to strict compliance with all laws and ethical standards by all of its agents/employees. Any questions regarding issues raised by this section should be directed to the managing broker.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 80 RECORD RETENTION SCHEDULE/ TRANSACTIONAL RECORDS

Record Type Retention Period

Sales or Transaction Records except Contracts 5 years Contracts and Related Correspondence 10 years after expiration or termination (including any proposal or direction that resulted in the contract and all other supportive documentation) Incident Reports and Claims (settlement cases) 7 years All Required Disclosures 5 Years

CORRESPONDENCE AND INTERNAL MEMORANDA

General Principle: Most correspondence and internal memoranda should be retained for the same period as the document they pertain to or support. For instance, a letter pertaining to a particular contract would be retained as long as the contract (10 years after expiration).

Correspondence or memoranda that do not pertain to documents having a prescribed retention period should generally be discarded sooner. These may be divided into two general categories:

1. Those pertaining to routine matters and having no significant, lasting consequences should be discarded within two years. Some examples include: . Routine letters and notes that require no acknowledgement or follow-up, such as notes of appreciation, congratulations, letters of transmittal, and plans for meetings. . Form letters that require no follow-up. . Letters of general inquiry and replies that complete a cycle of correspondence. . Letters or complaints requesting specific action that have no further value after changes are made or action taken (such as name or address change). . Other letters of inconsequential subject matter or that definitely close correspondence to which no further reference will be necessary. . Chronological correspondence files.

Please note that copies of interoffice correspondence and documents where a copy will be in the originating department file should be read and destroyed, unless that information provides reference to or direction to other documents that must be kept for traceability.

2. All correspondence in transaction files should be retained for 5 years.

3. Those pertaining to non-routine matters or having significant lasting consequences should generally be retained permanently.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 81 ELECTRONIC DOCUMENTS

1. Electronic Mail. Not all Email needs to be retained, depending on the subject matter. All of the Company’s Email Message information is categorized, each with distinct retention guidelines:

a. Transactional Email Correspondence (inbox, sent mail) (5 years)

Transactional Email Correspondence covers information (sent or received) that relates to client/customer interaction in a transaction. When direction is given or received in an email in regards to a transaction it needs to be placed in a transaction folder, electronic or hard copy, and should be retained for 5 years. The agent/ individual employee is responsible for Email retention of General Correspondence.

b. Ephemeral & Personal Email Correspondence (retain until read, destroy promptly)

Ephemeral Email Correspondence is by far the largest category and includes personal Email messages, requests for recommendations or review, Email messages related to updates and status reports.

c. Instant Messages (5 years)

When used as a form of business communication, Instant Messages (sent or received) create business records that are subject to all legal retention regulations of other formats, like Email messages or snail-mail correspondence.

d. Email or Instant Messages can be printed to include a hard copy in the file in which case the electronic version can be deleted or can be retained electronically for the period indicated.

General Guidelines for Electronic Mail: . Staff and agents/employees of the Company will strive to keep all but an insignificant minority of their Email related to business issues. . Staff and agents/employees of the Company will not store or transfer Company- related Email on non-work-related computers except as necessary or appropriate for Company purposes. . Staff and agents/employees of the Company will take care not to send confidential/proprietary Company information to outside sources.

2. Electronic Documents. Including Microsoft Office Suite and PDF files. Retention also depends on the subject matter.

. PDF Documents. The length of time that a PDF file should be retained should be based upon the content of the file and the category under the various sections

| Century21 S.G.R. | Office Policy Manual 2014 | Page 82 of this Policy. The maximum period that a PDF file should be retained is 10 years. PDF files the agent/employee deems vital to the performance of his or her job should be printed and stored in the agent/employee’s workstation.

Text/formatted files. The Company will conduct annual reviews of all text/formatted files (e.g. Microsoft Word documents) and will delete all those it considers unnecessary or outdated. After five years, all text files will be deleted from the network and the staff/agent/employee’s desktop/laptop. Text/formatted files the agent/employee deems vital to the performance of their job should be printed and stored in that person’s workspace.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 83

CHAPTER FIFTEEN: DISPUTE AMONG CENTURY21S.G.R. ASSOCIATES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 84 PROCEDURES

Your first obligation is to discuss any dispute with the other associate involved. In fact, the management of the company will not listen to your dispute unless the two associates have made a sincere effort to settle the matter between them.

If this fails the two associates should discuss the matter in front of the Manager, and the Manager will try to reach an amicable solution. If this also fails, parties involved may seek an amicable resolution through the Manager. The Broker will hold all funds in question in escrow.

The Associates involved should make every attempt to see the other associates point of view.

When the matter has been fully aired between the Manager and the Associates and the parties still cannot agree, each will submit their “last offer of settlement” in writing to the Manager. EXAMPLE: If after listening to all the facts the Manager believes the commission should be split 50%/50% and Associate “A’ offers a 70%/30% split and “B” offers a 60%/40% split, the final split will be 60%/40% because that was closer to the Manager’ independent determination.

Other disputes for commissions must be arbitrated/mediated with the Chicago Association of Realtors® in accordance with the Rules and Regulations promulgated by the Chicago Association of Realtors®, which conform to the rules and regulations of the National Association of Realtors® .

Every associate of Century 21 S.G.R., Inc is a member the Chicago Association of Realtors®. When they join the Association they agree to abide by the Rules and regulations of the Chicago Association of Realtors® (CAR). This means that all disputes with cooperating Brokers are to be resolved through the Chicago Association of Realtors®.

IF a commission paid to Century 21 and their associate is later arbitrated before the Chicago Association of Realtors®, and the finding goes against the company, the amount that must be reimbursed will be in relation to the split between the associate and the company at the time the original split was paid. If there are legal expenses associated with the Arbitration Hearing, these expenses will be paid in proportion to the broker commission split with the company. It is the policy of Century 21 S.G.R., Inc. that any disputes concerning money will be resolved of possible by the managing broker of each respected firm. If this is not successful and the other broker files with the Chicago Association of Realtors® we will first attempt to mediate with the aid of CAR. Only as a last resort will we actually arbitrate the matter.

If a complaint for an ethics violation is filed against the agent ‘only’ and the agent decides they need to be represented by an attorney, the agent would pay all attorney fees. If the ethics complaint names the agent and the company the expenses would be shared in the same proportion as the commission between the agent and the company

With the “OPEN HOUSE” being the leading offender, it is not unusual for an associate to have a commission dispute with another real estate firm.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 85 As soon as there is any indication of a problem, begin documenting the chain of events. If a commission is earned and a dispute exists, the Associate will present all pertinent facts to the Manager. The Manager will then contact the other firm and make a recommendation of settlement.

It is within the Managers discretion to decide whether the matter will be referred to the arbitration of CAR. Voluntary settlement, if reasonable, is always preferable.

It is extremely important for agents to obtain a buyer/broker agreement to make sure they receive their commission whether it be the cooperating fee or paid by the buyer. The market is becoming much more competitive and the agents from other companies will file for Arbitration. They will attempt to claim procuring cause and get your commission. You must be careful to protect what you work so hard for.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 86

CHAPTER SIXTEEN: RECRUITING PROGRAM

| Century21 S.G.R. | Office Policy Manual 2014 | Page 87 PROCEDURES

As we all know, Century 21 S.G.R., Inc has a group of fine Realtors®. This is true both individually and as a unit. Nevertheless, we are always looking for quality additions to our staff. One of our main resources for new associates is referrals from our existing staff. We have adopted a SPONSORSHIP PROGRAM to facilitate the recruiting process.

The company will pay an agent who recruits a fellow broker from another firm $250 per closing, for the first five closings, achieved by the newly recruited agent within 365 days from the issuance of a sponsored card by Century21 S.G.R., as long as the recruited agent does not work for a fellow agent’s team.

No bonus will be paid for a closing beyond the fifth closing, or one achieved after 365 days, even if it constituted one of the initial five closings achieved by the recruited agent. A Century21 S.G.R. Associate to earn a recruiting bonus must… a. Initiate a discussion with prospective recruit; b. Set-up an appointment with the prospective recruit and Jim Lynch or Nancy Suvarnamani. No bonus will be paid for recruit already in discussion with the company. No bonus will be paid for a simple testimonial solicited by a prospective recruit from a Century21 S.G.R. associate who is already in discussion with the firm. No bonus will be paid for any recruit who comes out of Century21 S.G.R.’s licensing school, unless he or she was recruited to the school by a fellow Century21 S.G.R. agent. No bonus will be paid for a recruit who works directly for a team, where the team leader will receive an override from the recruit’s closings. Agents who recruit other agents to the firm are the “Ultimate Team Players”.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 88

CHAPTER SEVENTEEN: FLOOR OPPORTUNITY

| Century21 S.G.R. | Office Policy Manual 2014 | Page 89 FLOOR OPPORTUNITY:

Within the guidelines stated below all sales associates shall have floor opportunities. These opportunities are a privilege, not a duty, and are to be approached as such. Like an Open House, floor opportunities are to be approached with preparation and positive anticipation. Professional apparel is required.

Associates can have these opportunities after the proper training. The opportunities remain as long as they are responsible and successful. Preferences in floor time will be assigned to those with (1) a proven history of converting calls into sales; and agents who have had at least three transactions during the prior quarter. Floor time is a reward for a job well done.

Switching slots is strongly discouraged; however, it is tolerable within the following limitations: The person assigned the slot is always responsible for the slot being covered. Any penalties assigned accrue to the original assignee. It is the original assignee’s job to make sure everyone knows who has the assignment. The assignee cannot give the floor to a non-eligible individual without specific consent of the manager.

If a floor agent misses one shift, he or she will not be eligible for any floor during the following two months.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 90

CHAPTER EIGHTEEN: ADVERTISING POLICY

| Century21 S.G.R. | Office Policy Manual 2014 | Page 91 ADVERTISING PRACTICES

The specific procedures for advertising properties with Century 21 S.G.R., Inc. are found in other training materials. These procedures, such as where and when properties are advertised are subject to change. The policies stated here primarily regard the legal and risk reduction aspects of advertising.

The following policies apply to all property listed with Century 21 S.G.R., Inc.

1. Century 21 S.G.R., Inc. adheres strictly to the Illinois License Law and rules regarding advertising.

The present deadline for placing ads must be checked with the Marketing Department. Ads “must” be submitted in a timely fashion to assure they run when the associate wishes them to run. Century 21 S.G.R., Inc. has no control over deadlines. The Marketing Department has a memorandum describing all deadlines for advertising. Basically all open house ads must be submitted by 5:00p.m on the Monday before they are scheduled to run. This would include ads for the following weekend and the Tuesday following that weekend.

Marketing Tools: Marketing tools include but are not limited to:

 Fliers with professional photography to be supplied by the agent  Century 21.com  Brochures  Century21 website  Century 21 S.G.R. website.  Agent web sites.  Yard signs.  MLS input sheet with will written narratives, correct, comprehensive information and professional photography  Home buyer seminars  Realtor.com  856 additional websites  Social media

2. No property will be advertised in any way, including placing a sign on the property without a signed written listing agreement on file with the company. The listing agreement in the hands of the agent is not sufficient. If a listing agent has a listing he/she wants to advertise, the original, a fax, or electronic version of the original must be in the hands of the company.

3. One party listing agreements (also called "one-time listings" or FSBO listings) will not be discussed, orally or in writing, with any person outside of Century 21 S.G.R., Inc unless a signed one party listing agreement is obtained.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 92 4. A listing which is due to expire by the publication date of a newspaper or magazine ad will not be inserted into the ad unless a written extension of the listing is received by the broker (managing broker) before the deadline for placing the ad.

5. No price changes or other substantive changes to the listing will be advertised unless a written change of the price or other appropriate information is received by the managing broker before the deadline for placing the ad.

6. Information on features of the property will not be advertised as "new" unless substantiated by written receipts or other evidence of payment from the owner showing the date the work was done. If the verification is received, it will be advertised with the appropriate date. If the verification is not received, the listing agent must use other words such as "newer" or "recent" to describe the feature.

Agents should take special care to follow these same rules in the use of "special feature" sheets. If an agent does not follow this policy regarding any information sheets or other documentation/advertising the agent prepares, the agent will be solely liable for any errors or omissions which later cause any losses.

7. “For Sale” sign - Use only company sign vendors for installation; cost $28. All “For Sale” and open house signs MUST be approved by the managing broker without exception and ordered by the staff. All signs, in all cases, at all times must be installed by an insured and bonded sign company. In absolutely “No” case will an agent ever install their own sign. Any agent doing so will be terminated from the firm. "For Sale" signs and lock boxes will be removed immediately upon request of the owner or expiration or withdrawal of a listing.

8. According to the REALTOR Code of Ethics, prior to closing, only the sold sign of the listing broker is allowed on the listing, unless the listing agent consents otherwise. It is the policy of Century 21 S.G.R., Inc. that the seller’s permission must also be obtained. It is also the policy of Century 21 S.G.R., Inc that if the company is the cooperating broker a sold sign may be placed at the property after the closing with the written permission of the buyer. Per the Code of Ethics, either the listing broker or the cooperating broker may claim to have sold the property in advertising and representations to the public.

9. Personal advertising by individual agents is encouraged. Any personal advertising must be approved by the managing broker. Illinois License Law and rules require that the Broker include the company name if the Broker's name is used. This policy covers all types of Broker advertising, including personal sign riders, business cards, car signs, homes magazine ads, classified ads, direct mail solicitations, specialty items (key chains, pens, pads, etc.), newsletters, farming materials, neighborhood newsletters, billboards, Internet advertising, etc. This list does not include all possible types of Broker advertising. One possible problem may exist in the use of an agent's first name only in advertising. While the rules do not specifically address this issue, Century 21 S.G.R., Inc. believes that the rule's and code's use of the term the licensee's "name" means the full

| Century21 S.G.R. | Office Policy Manual 2014 | Page 93 name of the person and not just a first name, initials, or a first name with last initial. Without the full name, the public cannot identify the person doing the advertising. Use of first names, initials, or first name with last initial only in Broker advertising is not allowed.

10. Any advertising containing financial terms of the offering must comply with federal Truth-in-Lending laws, also known as Regulation Z. Regulation Z requires that all of the terms of the financing be stated if any of the “triggering terms” are used. “Triggering terms” are terms such as the amount of down payment (“10% down”), the amount of any payment (“Only $550 per month”), the period of repayment (“30 year loan available”) or the number of payments (“Only 48 monthly payments”).

If any of these terms are used, the following disclosures are required:

a. Amount or percentage of down payment. b. Terms of repayment. c. Annual Percentage Rate, stated and calculated as such.

Use of any interest rate in advertising is not allowed. Only the Annual Percentage Rate, stated and calculated as such is allowed. Therefore, a property cannot be advertised as having a "7% assumable VA loan."

Not all terms trigger Regulation Z disclosure. Some examples of terms which can be used without triggering Regulation Z disclosure are "No down payment", "Financing Available" or "Special Financing", "Assumable Loan".

11. The Internet or some other form of electronic advertising may be used for advertising purposes. Keep in mind that all advertising rules and regulations apply to any material that a consumer might reach that is not behind any “firewall” or in a password protected area. In other words, anything not protected by password entry is advertising. As a result, the company name must be included and information must be accurate and timely. On the other side of the “firewall” or after a consumer enters a password protected area, the agent should follow brokerage relationship procedures outlined in this Manual starting on page 12.

12. Commercial e-mail messages are also governed by the Federal CAN-SPAM Act. For CAN-SPAM requirements see Attachment A to this Manual.

13. See the Social Media section in this Manual regarding Advertising and the use of social media in accordance with this Company’s policies.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 94 SOCIAL MEDIA

(Governing the use of e-mail, Internet and Social Networking Tools)

Century 21 S.G.R., Inc. policy is that Company owned computers and Company provided access to e-mail and the Internet are to be used principally for business purposes. (Personal use of agents’/employees’ own equipment and access secured on your own are covered by this policy when used for business purposes. When using your personal equipment and access secured on your own remember that you are always licensed and thus subject to regulation whenever you are discussing your business, even when using personal e-mail, the Internet or social networking tools.) The Company recognizes that limited personal use of e-mail, the Internet, and social networking tools (such as Face book®, Twitter®, Linked In®,You Tube or “blogging”) can be a benefit to agents, employees and other authorized users.

The use of technology in our business is changing at a very rapid pace. Therefore, this policy will not only provide guidance with regard to the use of the Internet, e-mail and social networking tools in the businesses of agents/employees of the Company but also general principles to be followed in using future technologies and communication. Note that this policy applies when agents/employees are using e-mail, the Internet, and social networking in an effort to advance their real estate brokerage business while using Company, personal or a third party’s equipment. The Company directs its agents/employees to follow the basic limits listed below; along with more specific requirements outlined in this chapter of the Policy Manual.

General Requirements

1. Agents/employees must take care to protect their client’s confidential information at all times. This includes in the agent/employee’s use of the Internet, certain e- mail messages and social networking tools.

2. Agents/employees must be courteous and professional at all times, especially when representing the Company. This includes the agents/employees’ use of the Internet, e-mail and social networking tools. Agents/employees shall not make defamatory or derogatory remarks about others in their electronic communications. They will not engage in gossip, rumor-spreading, “cyber- bullying” or any similar behavior.

3. Agents/employees must take care to be truthful when advertising or making other representations. This includes those statements made or advertising placed through use of e-mail, the Internet, your personal Website or social networking tools.

4. Agents/employees are encouraged to seek the advice of their managing broker if they have questions or concerns regarding the use of the Internet, e-mail or social networking tools before publishing any information that could be questionable.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 95 Use of the Internet, e-mail or social networking tools while at the office of the Company or on Company equipment.

Use of e-mail, the Internet and social networking tools by agents and employees is subject to the following guidelines:

1. Agents/employees may use e-mail, the Internet and social networking tools in connection with conducting their business on behalf of the Company.

2. Agents/employees may not use e-mail, the Internet or social networking tools for personal use except during break times, lunch time, and before and after normal working hours so as not to interfere with agents’/employees’ duties for the Company.

3. Agents/employees may not use e-mail, the Internet or social networking tools for non-work related private business.

4. Agents/employees may not use e-mail, the Internet or social networking tools to participate in football, basketball or other sports pools or leagues, or to gamble.

5. Agents/employees may not use e-mail, the Internet or social networking tools to conduct political activities (unless expressly authorized to do so as part of agent’s/employee’s duties to the Company).

6. Agents/employees may not use e-mail, the Internet or social networking tools to visit any pornographic sites.

7. Agents/employees should not use e-mail, the Internet or social networking tools to discuss the business policies or practices of the Company with any person outside the Company without first clearing that with your managing broker. Agents/employees may discuss policies/practices of the Company with a client or prospective client, but only through “private” e-mail and not through the use of social networking tools.

8. Agents/employees may not use e-mail, the Internet or social networking tools to transmit any defamatory, offensive, harassing, disruptive, or derogatory statements or images; or statements or images that offend on the basis of race, religion, ethnicity or national origin, sexual orientation, political beliefs or disabilities.

9. Agents/employees may not use e-mail, the Internet or social networking tools to distribute chain letters, search for alternative employment, transmit jokes, or participate in Internet discussion groups (unless such discussion groups relate directly to agent’s/employee’s job).

| Century21 S.G.R. | Office Policy Manual 2014 | Page 96 10. Agents/employees may not use e-mail, the Internet or social networking tools in any manner that may impair the Company’s reputation or public standing, or that is prohibited by law or otherwise illegal.

11. Agents/employees may not use e-mail, the Internet or social networking tools to upload, download or transmit, without the Company’s managing broker’s permission, copyrighted, trademarked or patented materials, trade secrets, or confidential, proprietary or private information or materials, except to the extent that they are used by an agent/employee in connection with a transaction.

12. Agents/employees should not use e-mail or social networking tools in any manner that would advocate that the Company adopt or that would indicate that the Company has a position or policy in place that is anticompetitive or which would otherwise violate state or federal antitrust laws.

The Company reserves the right to monitor, access, retrieve, read and (for legitimate business purposes) disclose all communications by or to agent/employee with or without notice to agent or employee. Accordingly, agents/employees have no right to or expectation of privacy in the use of e-mail, the Internet or social networking tools on equipment owned by the Company. The Company has no obligation to ensure against authorized access to your e-mail or Internet use.

Advertising

1. When agents/employees are advertising properties using e-mail, the Internet or social networking tools they shall abide by all provisions contained in the Illinois License Law, its rules, and the REALTOR® Code of Ethics. Examples are including the Company name and information that makes the message truthful and complete in all advertising.

2. Agents/employees will comply with Federal CAN-SPAM requirements when using e-mail, the Internet or social networking tools to transmit electronic commercial messages. (See Attachment A of this manual for CAN-SPAM compliance requirements).

3. Agents/employees will not use deceptive key words, meta tags or other devices to deceptively drive traffic to an Internet site.

4. Agents/employees will make sure that all advertising information given via e- mail, the Internet or social networking tools is current and accurate. Information should be checked at least every 18 days for accuracy and freshness.

5. Agents/employees will comply with all Fair Housing laws or regulations (federal, state, local and ethical) when using e-mail, the Internet or social networking tools in their businesses. (See p. 18 of this manual for fair housing policy).

6. Agents/employees will discuss with client(s) the advertising/marketing to be done

| Century21 S.G.R. | Office Policy Manual 2014 | Page 97 on their behalf including the use of e-mails, the Internet and social networking tools to market properties. Agents/employees must note if there is any objection to marketing via use of these methods and if so, avoid such marketing methods.

Collection of Information

1. Agents/employees may not collect consumer information through the use of e- mail, the Internet or social networking tools unless the agent/employee:  Tells the consumer they are doing so;  Tells the consumer what they will be doing with the information gathered;  Tells the consumer how they are protecting the information.

E-mailing

1. Agents/employees are required to follow the provisions set forth in Section 1450.145 in the Administrative Rules under the License Law as from time to time amended.

2. Agents/employees are also required to follow the provisions set forth in the federal CAN-SPAM Act as from time to time amended.

3. Agents/employees should make sure they double-check any text they are sending or posting via e-mail and to whom it is being sent before they hit the “send” button.

4. Agents/employees are required to print those e-mails that deal with specifics of a transaction or authorization to perform a service or task and to place those printed copies in the appropriate transaction files.

Blogging

1. Agents/employees may participate in “blogging” in relation to their business as a real estate licensee so long as they follow all the policies and procedures set forth in this manual with regard to the use of e-mail, the Internet and social networking tools.

2. If agents/employees wish to establish a blog, they should contact their managing broker or the Office Internet Consultant. When establishing a blog, agents/employees should work with the Office Internet Consultant on posting “terms and conditions” that will apply to the blog.

1. Agents/employees shall not copy, frame or otherwise use information received or viewed through e-mail, the Internet, or social networking tools without the

| Century21 S.G.R. | Office Policy Manual 2014 | Page 98 express written consent or other appropriate authority from the owner of the information. If permission is given with certain conditions then follow those conditions. Document the conditions when possible for your files.

2. Agents/employees must recognize that the Company owns the copyright to Company information contained on its web site or in other printed materials. Republishing or copying of this information for other than use in a transaction requires consent of the agent/employee’s managing broker (or the designated “Office Internet Consultant”), so long as the information includes the following: copyrighted or © by Century21 S.G.R., Inc. If agents/employees have any questions about intended use or how to show the copyright, contact the managing broker or the Office Internet Consultant.

Linking

1. Agents/employees shall review the content of any Internet site to which they might link. Agents/employees shall obtain the consent of the site owner before linking.

2. For any questions, the agent/employee should consult with the Company’s “Office Internet Consultant.”.

Designated Office Internet Consultant

1. The Company designates Nancy Suvarnamani, its Office Internet Consultant to whom all questions regarding the business use of e-mail, the Internet or social networking tools should be directed.

2. Agents/employees should contact the Office Internet Consultant to report suspected illegal, unethical or inappropriate use of e-mail, the Internet or social networking tools by other agents/employees.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 99

CHAPTER NINETEEN: TERMINATED AGENTS WITH PENDING CONTRACTS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 100 TERMINATED AGENTS WITH PENDING CONTRACTS

A Terminated agent can share in the commission on transactions entered into prior to termination that lead to closings after the associate leaves the company. The company, however, will charge a 20% follow up fee from the agent’s part of their commission. Examples: If the sales associate split was 60%, and they left the company, they would receive a commission split of 40% when the transaction closed. If the sales associate were on a 50%/50% commission with the company, they would have a 20% follow up fee deducted and receive a 30% commission.

Terminated agents will not be provided access to any office file without the express written consent of Management.

NOTIFICATION TO COMMISSIONER

The Managing Broker will immediately notify the Department of Financial and Professional Regulation when a sales associate leaves the company.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 101

CHAPTER TWENTY: TRAINING

| Century21 S.G.R. | Office Policy Manual 2014 | Page 102 TRAINING

In order to be sponsored by Century 21 S.G.R., Inc. all brokers hereby agree to complete the following training programs within the time period prescribed below:

 CAR Orientation & Ethics Classes First 60 days  MRED Training o Prospecting First 30 days o Searching First 30 days o Taxes First 30 days o CMAs First 30 days  Company Policy Manual Class First 45 days  Quick Start Internal Training o Module One First 30 days o Module Two First 90 days o Module Three First year (See Quick Start Syllabus for detail)  ABR Designation First 12 months  CRS Designation First 18 months  Create21 First 60 days  Six Business Builder Modules First 60 days  Business Builder Company Training First 60 days  YAPMO Training First 60 days  Certificated Negotiation Designation First year

| Century21 S.G.R. | Office Policy Manual 2014 | Page 103

FORMS & SAMPLES

 QUICK START SYLLABUS

| Century21 S.G.R. | Office Policy Manual 2014 | Page 104

Subject: Quick Start Training Program

Quick Start is SGR’s preliminary training course, intended to effect a rapid skill and production growth for new agents. The material covered, as well as schedule of classes, is attached.

Please check and save both attachments for topics and schedule. It’s required for continued sponsorship by the firm that you graduate. To graduate, you must:

1. attend all classes; 2. arrive on time; 3. turn off your cell phones during class; 4. actively participate in all classes; 5. complete all homework assignments; and 6. pass a test on all modules covered (see Addendum A).

Exact dates and times of all classes are below.

1 Quick Start – Level 1 Century 21 S.G.R., Inc.

Sales Associate’s Commitment For Participation in the Ten Session Course

1. I agree to attend all sessions, and arrive on time. 2. I agree to participate 110% in the training. This includes completing all assignments as directed. 3. I agree to apply the tools and techniques taught during training to my career after training. 4. I understand that I am a member of a team; as such, I agree to support and work toward team goals, provide all requested information, and follow the directions of my instructor. 5. I understand that I must satisfactorily complete all modules in order to graduate. If I must miss a session, I will make it up during the next round of training, and I will not graduate until after that point.

I understand my commitment as outlined above, and agree to meet or exceed all the goals stated.

Agent signature: ______Date: ______

Broker signature: ______Date: ______

DON’T WAIT TOO LONG! JUMP START YOUR SUCCESSFUL CAREER NOW!

2 Module I

I. Introduction to Quick Start

A. Course Learning Objectives 1. An understanding of the firm’s philosophy, structure, & expectations. 2. Establishment of a written business plan that will guide each associate to an income of $90,000 & above (see Addendum B). 3. A full understanding of listing & sales contracts…including how to complete & present. 4. How to price property. 5. Formulation of a written, standard, listing presentation. 6. How to qualify buyers financially & attitudinally. 7. Introduction to basic real estate accounting principles. 8. Technologies you must know. 9. Understand the Illinois License Act, its Administrative Rules, & NAR’s Code of Ethics & Standards of Practice. 10. Analyzing Investment Properties (see Addendum C).

B. Introduction to Basic Real Estate Accounting Principles 1. What is GCC? 2. What is net earned to agent? 3. What is typical company profit per transaction? 4. How does the franchise fee work & who pays for it? 5. Why do we belong to the Century 21 system?

C. Introduction to Business Paradigms 1. Small 2. Mass audience 3. Elite, branded

D. Introduction to Agent Paradigms 1. Hobby 2. Job 3. Career

E. Introduction to Prospecting Models 1. Cold calling: A hard-to-travel road: 150-to1; don’t follow this path 2. FSBO: A numbers game 3. Expired listings: Just the facts, please 4. Open house calls: Signs, signs, & more signs 5. Farm area: Group, location, building 6. Networking: To a projectable income 7. Sphere of Influence: I’m getting married, & everyone is invited 8. Lead Router: The Key: Desire & Timing 9. Investing in leads: Zillow, Trulia, Realtor.com, etc. 10. Floor: The Ecstasy & the Agony

F. The “Categorical Imperative” – Building a Book of Business 1. Which road to take? The intersection of method & personality

G. Writing an Effective Business Plan 1. A recap of 2012 2. Financial goals for 2013 3. My audience 4. My message 5. How do I send my message to my audience: My prospecting plan

Homework assignment: 1. Compile your Sphere of Influence (SOI) list within 7 days, using this format:

Name Full Address Phone # E-Mail

2. Send your first e-newsletter & e-greeting within 14 days. 3. Call everyone in your SOI within 21 days. 4. Write an initial business plan. 5. See 15 properties per week for the next 5 weeks in three targeted neighborhoods only. Turn in the list of properties you have seen.

Module II

I. Introduction to Listings (Conventional & Short Sale)

A. The name of the game 1. Why do I want them? 2. How do I get them? 3. The riddle of the sphinx: How do I list at the right price? 4. Pricing property a. The CMA b. Formatting the CMA

B. The listing presentation 1. Control 2. Structure 3. Presentation 4. The close

C. Handling Objections 1. Lower commission rate 2. Higher price 3. Shorter listing term

Module III

I. The Listing Contract (see Addendum D)

A. The employment agreement 1. Understanding it 2. Explaining it 3. Completing it 4. Your fiduciary duties under it

B. Mandated Riders 1. Seller’s Property Disclosure (Real Property Disclosure) 2. Lead Based Paint Notice Disclosure 3. Mold Disclosure 4. Radon Disclosure 5. Heat Disclosure

C. Hey look…I got a listing, now what am I supposed to do? 1. Inputting the listing 2. Check & re-check

D. Marketing the Listing 1. Internet presence 2. Broker’s & public open house 3. Co-Brokers – The key 4. Silver, Gold, & Platinum Marketing Packages (see Addendum E)

Test:

1. Complete a listing agreement using the following data & riders:  Property address: 1819 S Michigan Ave, Unit #1104, Chicago, IL 60616  Listing price: $235,000  Possession: at closing  Commission: 6%  Cooperating Commission: 2.5% - $295  Assigned agent: YOU  Length of listing: 240 days  Taxes: $3,984 in 2012  HOA: $204  Special assessment: none  Lot size: common  Exemption: homeowner’s  Dual agency: no  Owners: Sam & Sarah Rubenstein

2. Present MRED net sheet/complete Illinois relevant fields:  1st lien: $234,000, Chase  2nd lien: $25,000, GMAC  Look up the title charges & transfer taxes  Make justifiable assumptions for other fields

3. Be prepared to discuss owner’s options, including a possible short sale.

4. Advise owners of present Fannie Mae & Freddie Mac short sale guidelines, as of 11/1/2012.

Module IV

I. The Listing Agent’s Job

A. Everything 1. Calling the area around listing 2. Dual Agency: Legal Mandates 3. How to handle dual agency 4. What to do after an open house 5. Showing the property 6. Communicate, communicate, communicate 7. Dialogues 8. Listing Package 9. Seller’s net sheet 10. Dealing with co-brokers 11. How to present the contract 12. Leasing Provisions 13. Meeting property inspector 14. Meeting appraisers 15. Financially following the deal 16. Preferred Client Club

Module V

I. Sales Contracts

A. Residential (Conventional, FHA, Short Sale, REO) B. Commercial

II. Issues Relating to Receiving a Contract as Selling Broker

A. Determining the validity of Buyer Financial Qualification B. Co-Broker’s Rights. C. Presenting Contract to Seller.

6 D. How to Handle Initial and Additional Earnest Money Deposits. E. Following Deal to Close. 1. What to bring 2. Understanding the RESPA 3. Gift 4. Preferred Client Club 5. When do I get paid & how much do I get paid?

Module VI

I. Working with “The Buyer”

A. The imperative to financially qualify. B. The interview protocol – what is their motivation to buy? C. Buyer Representation: - Exclusive & Non-Exclusive - Written Mandate - File Procedure D. Other Issues 1. How to convert lookers into buyers. 2. How to convert floor calls into appointments. 3. How to show properties. 4. Presenting the contact. 5. Negotiating the deal. 6. Choosing a mortgage firm. 7. Choosing a home inspector and attorney.

Assignment: Compose a buyer’s value package.

Module VII

I. Present your buyer’s value package. The presentation will be filmed.

Module VIII

It’s show time at the Apollo!

-A property will be assigned to you, for which you must: 1. Price 2. Format price 3. Make a listing presentation to a senior agent and manager.

7 The presentation will be filmed; it should take between 15-25 minutes. Be prepared to handle multiple objections and close for the listing. You must have a listing presentation booklet detailing:

-Who is SGR? -Who are you? -The SGR difference -Services -Price

Module IX

- Agent-Owned Properties: Legal Mandates - E & O Insurance: what it covers and what it does not cover - Zoning (FAR, MLA) - Construction – Good, Bad, or Indifferent. - Cancellation of a Listing and Release of Earnest Money. - IDFPR Regulation - Termination (Voluntary, Involuntary – what happens to my listings & pendings). - Arbitration & meditation. - When you have a problem – to whom do you turn?

I. Completing Your Individual Business Plan

Module X: Test

8 Course, Part II

Module XI

I. Technology

A. Century 21 Business Builder: An Overview B. Creating a mailing list from Realist of neighbors for your listings C. Creating videos in minutes with Majisto D. Show Me the Money: Access the Down Payment Resource Tool on MRED

Module XII

I. Technology

A. Expand your marketing with a Facebook page and a link to all your listings B. Living in the Cloud with Google Docs C. Working virtually by using Drop Box D. Real Estate Applications for your iPad

Module XIII

I. The Law & Code of Ethics A. Illinois License Act B. Administrative Rules C. NAR’s Code of Ethics D. Standards of Practice

Module XIV

I. Analyzing Investment Properties A. Cash on cash rate of return B. Internal rate of return C. Net present value

Module XV

Final Exam

APPENDICES

| Century21 S.G.R. | Office Policy Manual 2014 | Page 105 APPENDIX ONE: DO NOT CALL

General Statement

1. As you are probably aware, the Federal Trade Commission (“FTC”) adopted regulations under the Federal Telephone Consumer Protection Act (“Act”) adopting a national Do Not Call Registry (“DNC Registry”). The FTC and the Federal Communications Commission (“FCC”) are charged with adopting rules to implement the Act and handling complaints concerning violations of the Act. This policy is adopted by Century 21 S.G.R., Inc to provide guidance for members of the Company in connection with compliance with the Act and the DNC Registry.

2. The policy of the Company is that the Company, all of its sponsored licensees, and any of its employees and representatives, will comply with the Act and DNC Registry.

3. The Company reserves the right to amend or modify this policy at any time as may be determined necessary by the Company.

General Rule

1. Sponsored licensees of the Company, employees of the Company, and any other representatives of the Company shall not make any telephone calls to any telephone number listed on the DNC Registry or the Company Do Not Call List (“Company DNC”) (as explained below) unless one of the following exceptions applies:

(a) You are currently working with the consumer;

(b) Within the last 18 months you have represented the consumer in a real estate transaction;

(c) The consumer has made an inquiry concerning real estate brokerage services or inventory within the last three months;

(d) The consumer is a personal friend or acquaintance of the caller; or

(e) Written consent has been obtained from the consumer to call a specific number(s).

2. PLEASE BE AWARE THAT EVEN IF AN EXEMPTION APPLIES, INCLUDING CURRENTLY WORKING WITH A CONSUMER, THE CONSUMER CAN REQUEST EITHER ORALLY OR IN WRITING THAT THEY NOT BE CALLED AND THAT REQUEST MUST BE HONORED. FURTHER, THAT NUMBER MUST BE PLACED ON THE COMPANY DNC.

3. Do not make any calls to numbers listed on the Company DNC without written permission from the consumer to call that specific number.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 106 Access to DNC Registry and Company DNC . 1. Contact Freddy Saba to gain access to the DNC Registry. He will guide you on how to access and use the Registry.

2. Any person making a call to a consumer whose telephone number is not on the DNC Registry and which consumer requests that they not be called again shall immediately report that request to the front desk personnel for adding this individual to the company do not call list.

3. If a consumer’s name appears on the DNC Registry but they fall under one of the exemptions referred to above, and that person requests, either orally or in writing, that their number not be called again, that request must immediately be reported to the Front desk personnel for inclusion on the Company DNC.

4. Before making a call to a consumer, you should check with the DNC Registry and the Company DNC as provided for in this policy.

5. The DNC Registry will be updated quarterly, on the calendar quarter.

6. Phone numbers placed on the Company DNC will remain there for a period of five (5) years. The Company DNC will be updated at least every thirty (30) days.

7. The information on the DNC Registry and Company DNC shall not be sold, transferred, or used for any purpose other than determining whether a cold call or telemarketing call can be made to a specific telephone number.

Making Sales Calls

1. No sales calls shall be made except in accordance with this policy.

2. If you will be making calls to consumers, you must:

(a) Disclose on every sales call your name, name of the Company, and the telephone number or address where you or the Company may be contacted.

(b) Describe the services you are offering.

(d) You may not misrepresent, harass, intimidate, annoy, or use obscene language in any such call.

3. The Company prohibits you from contracting with or using third party or outside calling services without first obtaining permission from the Company.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 107

4. It is impermissible for any agent/employee of the Company to make calls using automated dialers and a pre-recorded message without the express written consent of the person being called.

Do Not Call List: Record-Keeping and Record Retention

1. Documents containing the express written consent of the consumer to call specific numbers shall be retained in the Company’s files. If you do not have a file with regards to a specific consumer, a copy of that consent shall be forwarded to the front desk personnel.

2. Provide copies of any scripts that you may be using in telemarketing and cold calling to Nancy Suvarnamani.

3. If you are requested not to call a number, then follow up with written confirmation to front desk personnel of the request so the phone number can be placed on the Company DNC.

4. If a telephone number is inadvertently made to a consumer whose number appears on the DNC Registry and you are so advised of that during the telephone call, then prepare a written report to the administrator of the Company DNC advising them of that fact.

a. If a For Sale By Owner (FSBO) has their number on the DNC Registry, then you should not be calling the consumer unless you have a bona fide buyer for the subject property. In the course of conversation do not try to steer the conversation to issues regarding you listing the property unless the owner makes inquiries regarding that possibility. If the FSBO requests not to be called in the future, then notice should be given to add their name to the Company DNC Registry. b. Do not contact a customer who simply visits an open house of yours. If you wish to contact guests who come to an open house that you are conducting, you must include a guest register space allowing the guest to specifically indicate that they can be called and indicate the phone number that can be called. c. If you have a contact on your web site from a consumer, please ask them to indicate whether they can be called and, if so, at what number. This can be accomplished by e- mail or by a point to click on your web site. d. If your cell phone indicates a call from an unknown number, do not call that number without checking the DNC Registry. If there is an indication that no assistance is required, then the call should be broken off at that point, without discussing your brokerage services or inventory.

5. Frequently asked questions are available on both the website of the Illinois Association of Realtors®.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 108 Responsibility

1. The Act and the DNC Registry are entity based provisions. This means that the Company will generally be the party against which a complaint will be filed or a suit brought for violation of the Act, the DNC Registry or the Company DNC.

2. Fines under the Act can be up to $11,000 per incident or private litigation can be brought by an individual resulting in a fine of up to $500 plus attorney’s fees, costs, and any actual damages.

3. The licensee violation the provisions of the DNC Registry will be accessed and pay all fines against that agent and Century 21 S.G.R., Inc.

The basic risk reduction techniques in this manual can contribute significantly to the safe and successful practice of the real estate business for Century 21 S.G.R., Inc. and each of its agents. The Company appreciates each agent's and staff member's enthusiastic endorsement of these concepts.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 109 APPENDIX TWO: DO’S AND DON’TS FOR BUYERS’ AGENTS

Buyers’ Agents "Do's"

DO Explain designated agency to the buyer.

DO Have a specific buyer interview session. Explain how buyers’ agents are paid. Explain the buyer agency contract.

DO Tell the buyer of any potential for dual agency. Explain to the buyer the Consent to Dual Agency form and ask if the buyer is willing to sign it.

DO Disclose your agency status orally to the seller, if not represented by another agent, preferably when first showing the property and confirm it in writing not later than the presentation of the offer.

DO Ask the buyer whether they are subject to any existing agency agreements. If they are subject to an exclusive agreement, you should not interfere with the agency of another agent. You may enter into another agreement with them upon release from the other agreement. If non- exclusive, you may enter into another non-exclusive agreement, but do not enter into an exclusive agreement.

DO Represent the buyer, acting according to your agreement with the buyer and the duties of the Illinois statutes.

DO Exercise reasonable skill and care for the buyer.

DO Seek a price and terms acceptable to the buyer.

DO Present all written offers to and from the buyer in a timely manner, regardless of whether the buyer is presently under contract to buy a property, unless the buyer otherwise instructs you in writing.

DO Disclose all adverse material facts to the buyer which you know. Adverse material facts include (1) environmental hazards affecting the property; (2) physical condition of the property; (3) material defects in the property; (4) material defects in the title to the property.

DO Advise the buyer to obtain expert advice as to material matters about which you know but the specifics of which are beyond your expertise.

DO Account in a timely manner for all money and property received on behalf of the buyer.

DO Comply with all license laws, regulations, civil rights laws, fair housing laws and any other applicable laws.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 110 DO Search for and present the buyer with the selection of properties specified in your buyer agency agreement. This could include MLS properties, FSBO's, REO property and unlisted property.

DO Recommend an appraisal and appropriate inspections such as building, termite, environmental, lead paint, radon, etc.

DO Work for the lowest amount of earnest money that is appropriate given the market, type of property and type of offer the buyer wants to present.

DO Point out good and bad features of a property, especially features affecting value such as poor floor plans or over improvement for the neighborhood.

DO Direct the buyer to objective sources for relevant information you know about the area, such as proposed roads, power lines, school changes, commercial developments, local tax increases, etc.

DO Complete a Competitive Market Analysis before an offer is made on a property. Make sure it is a thorough comparison of all properties, active, sold and pending. Analyze the data with the buyer and assist the buyer in formulating an offer price.

DO Prepare the offer with favorable and protective terms for the buyer, particularly in inspections, and recommend legal counsel when necessary.

DO Counsel with the buyer as to negotiating strategies on terms and price. Share your experience in negotiating with the buyer and give your recommendations, if appropriate.

DO Keep confidential information of the buyer confidential unless you have permission to disclose it. Go over with the buyer on the buyer interview this aspect of agency, making sure you and your client have a good idea of what is usually discussed with the seller and other agents in a transaction.

DO Treat the customer, the seller, honestly.

DO Disclose all information you receive from the listing agent. This is especially helpful regarding the seller's negotiating position and intention.

DO Disclose buyer paid retainer fees to the seller if you are also getting commission from the seller and get the informed consent of your buyer to accept commission from the seller (this should be in the buyer agency contract).

Buyers’ Agents "Don't"

DON’T Disclose confidential information of your client, the buyer. This is information defined in Article 1 and discussed in Article 15 of the License Law. The Article 15 definition of confidential information refers to information being confidential if requested in writing by the

| Century21 S.G.R. | Office Policy Manual 2014 | Page 111 client, if the information deals with the negotiating position of the client, or if disclosure of the information could materially harm the position of your client. This likely includes information such as the buyer's motivation to buy, the price or terms the buyer is willing to offer or that you and the buyer believe the property is underpriced.

DON’T Try to balance "fairness" between the seller and buyer. You represent the BUYER - your only obligation to the seller is to be honest and not to give the seller false information. If you learn important information about the seller's negotiating position, tell your buyer - don't make decisions about what to disclose in the interest of being "fair" to the seller.

DON’T Accept a bonus, prize, trip or incentive from a seller or listing broker without disclosure to and informed consent of your client, the buyer.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 112 APPENDIX THREE: DO’S AND DON’TS FOR SELLERS’ AGENTS

Sellers’ Agents "Do's"

DO Explain designated agency to the seller.

DO Tell the seller of the potential for dual agency. Explain to the seller the Consent to Dual Agency form and ask if the seller is willing to sign it.

DO Explain to the seller how the listing agent is paid, the company’s rate of compensation and the company’s policy on splitting fees and the amount that it will pay to cooperating agents.

DO Ask the seller whether they are subject to any existing agency agreements. If they are subject to an exclusive agreement, you should not interfere with the agency of another agent. You may enter into another agreement with them upon release from the other agreement. If non- exclusive, you may enter into another non-exclusive agreement, but do not enter into an exclusive agreement.

DO Represent the seller, acting according to your agreement with the seller and the duties of the Illinois statutes.

DO Exercise reasonable skill and care for the seller.

DO Seek a price and terms acceptable to the seller.

DO Present all written offers to and from the seller in a timely manner, regardless of whether the seller’s property is presently under contract, unless the seller otherwise instructs you in writing.

DO Respond honestly and accurately to request for information concerning the property or the seller. If the information requested is confidential, indicate that to the buyer or buyer’s agent instead of stating you don’t know.

DO Advise the seller to obtain expert advice as to material matters about which you know but the specifics of which are beyond your expertise. This includes recommending legal advice when needed.

DO Account in a timely manner for all money and property received on behalf of the seller.

DO Comply with all license laws, regulations, civil rights laws, fair housing laws and any other applicable laws.

DO Disclose to prospective buyers all material adverse facts pertaining to the physical condition of the property that are known to you and which could not be discovered by a reasonably diligent inspection of the property by the customer. All of this information should already be on the disclosure forms prepared by the Seller.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 113 DO Work for the highest amount of earnest money that is appropriate given the market, type of property and type of offer the buyer presents and consistent with reaching an agreement between the parties.

DO Complete a Competitive Market Analysis before listing the property.

DO Negotiate the offer with favorable and protective terms for the seller, especially in inspections and title examination. Recommend legal advice when needed.

DO Counsel with the seller as to negotiating strategies on terms and price. Share your experience in negotiating with the seller and give your recommendations, if appropriate.

DO Keep confidential information, as defined in the License Law, confidential unless you have permission to disclose it. Go over with the seller on the listing call this aspect of agency, making sure you and your client have a good idea of what is usually discussed with the buyer and other agents in a transaction.

DO Treat the customer, the buyer, honestly.

DO Disclose all information you receive from the buyer’s agent. This is especially helpful regarding the buyer's negotiating position and intention or the buyer’s ability to perform.

Sellers’ Agents "Don’t"

DON’T Disclose confidential information of your client, the seller. This is information defined in Article 1 and discussed in Article 15 of the License Law. Article 1 refers to information being confidential if requested in writing by the client, if the information deals with the negotiating position of the client or if disclosure of the information could materially harm the position of your client. This likely includes information such as the seller's motivation to buy, the price or terms the seller is willing to offer or prior offers and counter offers.

Disclosed Dual Agents "Do's"

DO Discuss the possibility of Disclosed Dual Agency with BOTH buyer and seller at the earliest possible time in your relationship.

DO Obtain the signature of both buyer and seller on a Consent to Dual Agency form as soon as possible but no later than your beginning to act as a dual agent.

DO Represent the seller and the buyer, acting according to your agreements with the seller and the buyer and the duties imposed by Article 15 of the License Law.

DO Exercise reasonable skill and care for the seller and the buyer.

DO Seek a price and terms acceptable to both the seller and the buyer.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 114

DO Present all written offers to and from both the seller and the buyer in a timely manner.

DO Disclose all adverse material facts to both the buyer and the seller which you know or should know. Adverse material facts include (1) Environmental hazards affecting the property; (2) Physical condition of the property; (3) Material defects in the property; (4) Material defects in the title to the property; (5) Material limitation on the seller’s ability to perform under the terms of the contract; and (6) the buyer’s financial ability to perform the terms of the transaction.

DO Advise both the seller and the buyer to obtain expert advice as to material matters about which you know but the specifics of which are beyond your expertise. This includes legal advice when needed.

DO Treat all clients honestly.

DO Provide information about the property to the buyer or tenant.

DO Disclose all latent material defects in the property that are known to the agent.

DO Disclose the financial qualification of the buyer or tenant to the seller or landlord.

DO Explain real estate terms.

DO Help the buyer or tenant to arrange for property inspections.

DO Explain closing costs and procedures.

DO Help the buyer compare financing alternatives.

DO Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer.

DO Account in a timely manner for all money and property received on behalf of the seller and the buyer.

DO Comply with all license laws, regulations, civil rights laws, fair housing laws and any other applicable laws.

DO Keep confidential information of both the seller and the buyer confidential unless you have permission to disclose it.

DO Give written disclosure of your agency status no later than the presentation of the offer. In the written disclosure, disclose your agency status and the sources of the compensation, usually the seller.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 115 DO Conduct yourself with the knowledge that the brokerage (and therefore you) represent BOTH buyer and seller.

DO If YOU are both a buyer's agent and the listing agent, act only to "facilitate" the negotiations and transaction.

DO If YOU are both a buyer's agent and the listing agent, stay completely neutral.

DO Make sure that there is a confirmation of Consent to Dual Agency in the Purchase Contract which confirmation is initialed by the parties.

Disclosed Dual Agents “Don't”

DON’T Disclose confidential information that you may know about the clients, without that client’s permission.

DON’T Disclose the price the seller or landlord will take other than the listing price without permission of the seller or landlord.

DON’T Disclose the price the buyer or tenant is willing to pay without permission of the buyer or tenant.

DON’T Recommend a suggested price the buyer or tenant should offer.

DON’T Recommend a suggested price the seller or landlord should counter with our accept.

DON’T Accept compensation from both parties unless disclosed to both parties and you get the informed consent of both parties. This includes nonrefundable retainer fees accepted from buyers.

DON’T Accept a bonus, prize, trip or incentive from a seller without disclosure to and informed consent of both clients, buyer and seller.

DON’T Act like you are the agent of only one of the parties, even after having made disclosure and obtained consent to act as a dual agent.

DON’T Take the position of one or the other parties. Remain neutral as to advising either party about aspects of the transaction whether it be pricing or other terms.

| Century21 S.G.R. | Office Policy Manual 2014 | Page 116 APPENDIX FOUR: WEBSITE REQUIREMENTS UNDER ILLINOIS LICENSE ACT OF 2000

Published on Illinois Association of REALTORS® (http://www.illinoisrealtor.org)

WEB SITE REQUIREMENTS WEB SITE AND E-MAIL REQUIREMENTS  ILLINOIS REAL ESTATE LICENSE ACT OF 2000

Each page (HTML document) of the Web site must include:

 Company name or assumed name as registered with the Department of Financial and Professional Regulation (DFPR)  City and state of company’s principal office  Licensee’s name, if it is the licensee’s site  If marketing property at the site it should also include the city and state where the property is located

If the broker (or broker’s site) or Broker (or Broker’s site) are not licensed in the state of the marketed property then where the broker/Broker is licensed If this information is on a frame that appears with each page on the Web site then it need not be on each page (HTML document) of the Web site.

Must keep updated so the information is accurate

Must include name of listing broker with each property shown unless behind a password protected firewall

The first or last page of any electronic communication from a sponsoring broker must include:

 Company name or the assumed name registered with DFPR  City and state of the company’s main office or the office from which the message originated

The first or last page of any electronic communication from a real estate licensee must include

 Licensee’s name  Name of the company with which the licensee is affiliated  City and state in which the licensee’s office is located

(The above information regarding electronic communications for both sponsoring broker and licensee does not apply if the communication is a message in response to a member of the public and the required information has previously been provided)

| Century21 S.G.R. | Office Policy Manual 2014 | Page 117  REALTOR® CODE OF ETHICS

ARTICLE 12. Applies to all forms of communication including communication by electronic means. This would include Web site advertising, e-mail messages, blog entries, social media, text messaging or any other electronic means of communication that relate to the practice of real estate brokerage

REALTORS® must:

 Disclose status as real estate professional in a “readily apparent” manner  Make sure all communications are honest and truthful  Truthful representations include the use of URLs and domain names that are not o Deceptive or framed in an unauthorized manner o Manipulated to produce a deceptive or misleading result o Deceptive in the way they direct Internet traffic (i.e. using metatags, keywords or other devices to divert traffic in a deceptive manner)  Be sure the recipient knows the communication is from a real estate professional  Include the company name in any advertising  Ensure that information included on Web site is kept current and if not promptly take corrective action  Disclose the state of licensure in a “readily apparent manner”  Disclose if the REALTOR® will share or sell information gathered via the Internet  Not use URLs or domain names that do not present a “true picture”

ARTICLE 15

 REALTORS® shall not knowingly or recklessly make false or misleading statements about competitors, their businesses or business practices  These principles apply to electronic communications such as blogs, social media, e-mail messages etc.

 FEDERAL CAN-SPAM REQUIREMENTS FOR COMMERCIAL E-MAILS

Applies to “commercial electronic mail message(s)” defined as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service (emphasis added) (including content on an Internet website (sic) operated for a commercial purpose)” and a commercial message does not include a transactional or relationship message

 All commercial e-mail messages must contain: o A legitimate return e-mail and physical address (which can include a post office box or a private mail box that the sender has accurately registered with the U.S. Post Office or a commercial mail agency that follows U.S. Postal Service regulations o A conspicuous way to opt-out of receiving the commercial e-mail messages

| Century21 S.G.R. | Office Policy Manual 2014 | Page 118 o The opt-out is available for at least 30 days after transmission o A clear and conspicuous notice that the e-mail is an advertisement or solicitation

 The sender may not o Charge a fee to opt out o Require personal information to opt out

 The recipient must be able to opt out o By sending an e-mail message o By requesting to opt out through a Web site

Note: Senders of electronic commercial messages to wireless devices must check for wireless domain names that require express consent to receive these messages.

If you participant in a Multiple Listing Service (MLS) that has an Internet Data Exchange (IDX) Policy, you will also need to comply with your particular IDX policy requirements by virtue of your participation in your MLS. You should check your local/regional policy for those requirements.

Also Note: This information does not take the place of specific legal advice and only constitutes general rules without the rules being applied to specific factual situations. So, before establishing policies and procedures consult with your own attorney for specific legal advice.

Join us on: Facebook LinkedIn Twitter | IAR Blog

Home | Site Map | Contact Us | Privacy Policy/Terms of Use

| Century21 S.G.R. | Office Policy Manual 2014 | Page 119 Date: ______

West Loop: 1161 W. Madison St. Chicago, IL 60607 South Loop: 1823 S. Michigan Ave. Chicago, IL 60616 Lincolnwood: 6600 N. Lincoln Ave., Suite 213 Lincolnwood, IL 60712

INDEPENDENT CONTRACTORS AGREEMENT

THE TERM OF THIS AGREEMENT IS FOR ONE YEAR. IT SHALL TERMINATE ONE YEAR FROM THE EXECUTION OF THIS AGREEMENT WHICH IS STATED ON PAGE 4.

7. In performing these professional services to the public, the Broker will pay all his or her travel and entertainment expenses.

3 It is further agreed that said Broker agrees to fulfill, to the best of his or her ability, the following terms and conditions:

Date: ______Broker:

______

Address: ______

______

Accepted by: Century 21 S.G.R., Inc., Sponsoring Broker

______

By: ______Century 21 S.G.R., Inc., Managing Broker

| Century21 S.G.R. | Office Policy Manual 2014 | Page 120

ACKNOWLEDGMENT AND AGREEMENT

The undersigned agent or employee of Century 21 S.G.R., Inc. acknowledges receipt of a copy of Century 21 S.G.R., Inc. Office Policy Manual. The Company reserves the right to modify, amend, or change this policy in any manner at any time. Violation of this policy will subject you to discipline as provided for in this Policy Manual.

As a condition of his/her association or employment with Century 21 S.G.R., Inc., the agent or employee agrees to abide by the terms of this Manual as presently adopted and as amended in the future by publication from management of any changes.

Failure to abide by the terms of this Manual as adopted and amended will be grounds for disciplinary action of the agent or employee, including termination of association or employment.

______Agent or Employee

______Date

| Century21 S.G.R. | Office Policy Manual 2014 | Page 121