Policies, Rules & Standards

Changes to California Code of Ethics and Arbitration Manual

The California Code of Ethics and Arbitration Manual, which is incorporated into your Association Bylaws and is therefore binding on you, has been extensively revised for 2015. This notice describes the key changes that have been made to the Manual. Read More

Policies, Rules, & Standards

Mandatory Broker Compliance – Variable Dues Formula

PFAR has received a direct mandate from the National Association of REALTORS® and the California Association of REALTORS® to comply with this policy, referred to as the Variable Dues Formula. 

The only exceptions are:

  1. Licensees working in a referral company under a separate entity (Corporation or DBA), and engaged solely in the referral business, and who are not participants or subscribers in any Multiple Listing Service (MLS).  These licensees are referred to as LFRO agents.
  2. Licensees working as Mortgage Loan Originators (MLOs) who have obtained the NMLS license endorsement and who are not engaged in real estate licensed activities except those for which an MLO is required, and who are not participants or subscribers in an y MLS.
  3. Commercial agents working in a substantially all commercial office that is located outside of the board’s jurisdiction and is not the broker’s main office that he/she works out of.
 
The first two exceptions listed (a and b) require that a specific form be completed and certified by the broker, indicating the licensees who are exempt from the Variable Dues Formula.  These forms are to be updated on an annual basis.
 
Please review all licensees affiliated with you and either:
 
  1. Pay the amount equal to $474 for each licensee, understanding that each licensee paid for will be considered a non-member salesperson and will not have local, state, or national membership.
  2. Sever the licensee(s) from your office.
  3. Assign the licensee(s) to a separate corporation/DBA if acting as referral only (LFRO), and certify such with the Limited Function Referral Office (LFRO) Certification form.  This corporation/DBA must be referral-only and active under the DB’s license.
  4. Identify the licensee(s) as Mortgage Loan Originator (MLO) only, and certify using the Mortgage Loan Originator Certification (MLO) form.