2007-2008 Commercial Top Producers Club

Commercial Real Estate Council of Greater Cincinnati

A division of the Cincinnati Area Board of Realtors^®

(Approved October 2007)

ARTICLE 1 - PURPOSE

Purpose of the Commercial Top Producers Club is to recognize outstanding sales performance of commercial and industrial Realtor® members in good standing with the Commercial Real Estate Council of Greater Cincinnati, a division of the Cincinnati Area Board of Realtors®.  In order to qualify, at least 80% of your award-submitted business must be from C & I generated transactions. All business generated must be arms-length, third party transactions.  Realtor® members are eligible for either the Commercial Top Producers Club or Circle of Excellence but not both (there are different qualification criteria for each).

ARTICLE 2 - RECOGNITION PERIOD

The recognition period shall be October 1, 2007 through September 30, 2008.

ARTICLE 3 - PRESENTATION OF AWARDS

Those qualifying for the Commercial Top Producers Club each year will be recognized and presented an award at the Board's C & I awards function following the recognition period. Recognition of recipients will be by the company with which the recipient was affiliated at the close of the recognition period.

ARTICLE 4 – DEFINITIONS

A.  Total Transaction Value (TTV)

B.  Listing/Selling

C.  Tip/Referral Fees

D.  Company

E.   Recognition Period

ARTICLE 5 - ELIGIBILITY REQUIREMENTS

Section 1:  QUALIFICATION

All real estate sales and leases shall be considered eligible for the Commercial Top Producers Club.  The terms “sale” and “lease” are hereafter used interchangeably, as are “buyer” or “tenant” and “seller” or “landlord.”  It is generally assumed that the applicants have represented a party in a transaction or referred or been referred a transaction.  Consulting work (such as preparing reports, rendering opinions of value, doing advisory work of a general nature) in which the applicant does not represent a party in a transaction shall not be included.  The key word in this section is “represent.”  All tip fees are included.  An applicant may qualify as follows:

Dollar Qualification: $3,000,000 in TTV credit (with no minimum transactions).  The TTV shall be equal to 100% of the dollar credits that are divided by the agents participating in the transaction. 

Calculating TTV Credit shall be in two steps:

(1)    If different companies represent the buyer and seller, the TTV shall first be split equally (50/50) between the companies regardless of who pays the commissions (listing company, seller or buyer)  and regardless of the relative commission amounts paid.  (Tip fees to another company are handled like pro rata agent splits, described below).  If there is only one company involved in a transaction, the entire TTV is credited to that company.   Total amount to each agent cannot exceed 100%.  If different companies both represent seller as agent and subagent, the TTV shall also be split 50/50 between the companies.

(2)    Within a company, TTV dollar credits shall be split to reflect the actual commission splits among individual agents (whether listing or selling agents or teams).  Tip fees, both incoming and outgoing, are also treated like agent splits.

(3)    For any other unusual situation, e.g., co-listing companies or more than one company representing the buyer, the division of TTV credits shall reflect the agreement between the companies and the actual split of commissions.

Examples:   Assume Sale or Lease with TTV of $1,000,000

Example #1

Landlord represented by Alpha Company, 2 person listing team (equal splits); Tenant represented by Beta Company, 3 person team (splits 50%, 25%, 25%), commission paid by the Tenant.

TTV Credits:     Alpha agents - $250,000 each

Beta agents -  $250,000, $125,000, $125,000

Example #2

Same scenario except Alpha Company pays 20% outgoing tip fee to an out-of-town affiliate who referred the listing.  Total to Alpha is $500,000 minus the $100,000 (20% tip fee) paid to the affiliate, leaving $200,000 to each Alpha agent.  Total to Beta is $500,000 and has the same splits for the three agents, as shown in Example 1.

Example #3

Alpha company agent does transaction in Philadelphia for local client.  There is a listing agent and the Alpha agent uses a Philadelphia affiliate broker (60% to Alpha, 40% to Philadelphia affiliate).   Alpha agent will be credited with  $300,000 of TTV.  If there was no listing agent, Alpha agent would get $600,000 credit.

Example #4

One Beta agent represents buyer and another Beta agent represents seller.  Because both agents are in the same company, TTV credits are split pro rata to reflect the actual commission split among the agents. 

Example #5

A Philadelphia broker refers a client requirement to an Alpha agent for a 20% tip fee.  Alpha agent represents client in leasing space from local developer.  Alpha agent gets $800,000 of TTV credit.  If there had been a listing company, Alpha agent would get $400,000 credit.

Section 2:  AWARDS

2.1  There will be only one level of qualification with a minimum of $2,500,000 in dollar amount credit; however, there will be special recognition for the “Top 3” in each of the following categories:  Industrial, Investment, Office, Retail and Corporate Services, with the balance of members listed alphabetically.  The Corporate Services category shall be defined as those producers who coordinate/handle multi-market brokerage work for corporations and execute a minimum of 70% of their transaction revenues in markets outside of Greater Cincinnati. In the “Top 3” category an agent may qualify for only one category that he or she identifies on the CTP form. Also, there will be a “Rising Star” award for a first time recipient who has been in the business for not more than 36 months. Companies may also nominate their agents for the “Most Outstanding Transaction” award as long as they can provide how the agent or broker truly made a deal happen and/or added value. To qualify for any of these special awards at least 80% of the submitted transactions (property) must be located in either Ohio, Kentucky or Indiana to be considered.

2.2  Further, there may be awards for special production performance, e.g. most difficult transaction, biggest lease, most square feet leased, etc., based on a decision of the Commercial Top Producers Subcommittee, in accordance with Article 11 of these rules.

Section 3:  Transactions must have been closed during the period Oct. 1, 2006 through Sept. 30, 2007.  If commissions are prorated over a number of years, transaction credit is claimed during the award period in which commission payment is received by the company.

Section 4:  Any reference to the 'applicant's company' throughout these Rules means the company the applicant was affiliated with at the time of the subject property transaction. An applicant who joins the Cincinnati Area Board of Realtors®, after the recognition period has started, is eligible provided the transactions claimed were closed during membership with any Realtor Board nationwide, but with a minimum 3-month membership in the Cincinnati Area Board of Realtors. 

Section 5:  An applicant who has been found guilty of violating the Commercial Top Producers Club rule for during the recognition period, regardless of the date of the occurrence, in which the violation occurred, may be deemed ineligible for that period (see Article 10).  Any applicant who has been found guilty of violating the real estate licensing laws of the Ohio Revised Code during the recognition period, regardless of the date of the occurrence, in which the violation occurred, is ineligible for that period.

ARTICLE 6 - ENTRY REQUIREMENTS  

Section 1:  To apply for recognition an applicant shall submit the following and it must be received at the Board office by Oct. 15, 2008 for the recognition period just completed on the September 30th immediately prior thereto:

1.1  The application form must be completed in all details and signed by the applicant;

1.2  Applicant's designated Realtor®/office manager must have signed the application form certifying its validity;

1.3  Attach to the application form three (2" x 3"{minimum size}) black and white glossy pictures, with applicant's name printed on the back as it is to appear in any advertising;

1.4  Attach to the application form the entrance fee amount (which is to be established by the Commercial &Industrial Committee and which will appear on the entry form) to defray the cost of the Club. NO REFUND WILL BE MADE if applicant is ineligible because of misrepresentation;

1.5  Attach a sample business card showing the Commercial Top Producers Club  format as per Rule VIII that the applicant intends to use on business cards.

1.6  For late entry, up to 5 business days (Monday-Friday) after the deadline, time is of the essence, the applicant shall submit a Commercial Top Producers Club form along with a check for the entry fee plus a $500 late entry fee. In addition, the applicant will automatically be audited.

ARTICLE 7 - VERIFICATION

Section 1:  All entries will be reviewed by the Commercial Top Producers Subcommittee for completeness and compliance with contest rules. Improperly submitted entries will be returned and must be resubmitted in proper order, within 7 days of notification, or applicant is automatically disqualified.

Section 2:  Prior to Oct. 27, 2008, the Subcommittee will select a number of applicants at random and a selected number of the "top ten" producers for audit. Those selected for audit shall submit, within 14 days of notification, the following substantiating information on a Subcommittee-selected number of transactions that were submitted:

2.1    Sales records used by company, signed and approved by office manager.

2.2  Closing statement with address or legal description verifying closings (signatures not mandatory).

2.3  Purchase Contracts.

2.4  Selling Agency Contracts (if claiming listing transaction credit).

2.5    Company's transaction reports verifying all pertinent information or cancelled commission checks or copies of same.

2.6    Lease Contracts:  Copy of the lease agreement, lease memo or other document must be submitted in support of the broker's involvement.

2.7    Agency Disclosure statements.  Determination of representation should be provided by the State Agency Disclosure forms. 

Section 3:  If the purchase contracts, listing contracts, or lease agreements are not witnessed or signed by a salesperson claiming participation, or if any of the above are not available, additional supporting evidence or affidavits must be furnished to the satisfaction of the Committee.

ARTICLE 8 - BROKER RESPONSIBILITY

The designated Realtor®, on behalf of the licensees within the designated Realtor®'s company, shall submit each year a Designated Realtor® Application for the Commercial Top Producers Club. The designated Realtor®/office manager (hereinafter referred to as "management") shall sign the initial entry form certifying the validity of the entry and that the applicant's transaction records are correctly stated; that management has read the rules, understands them and will abide by them; that management shall be held accountable for the company's activities. In the event that a salesperson and/or management MAKES A FALSE CLAIM, OR GIVES FALSE INFORMATION, the applicant and/or management and individuals of the company may be barred from participation in the club for the year the false information was provided and/or subsequent years.

ARTICLE 9 - PROMOTION

Section 1:  A company, office or group of agents associated with the Commercial Top Producers Club of the Cincinnati Area Board of Realtors® is permitted to use this contest and its results in any advertising or promotion of the company or individuals connected with the company, including news releases.

Section 2:  A Commercial Top Producers Club recipient may announce his or her personal participation in the Commercial Top Producers Club in individual advertising, printed promotional pieces, individual news releases or articles. Individual news releases or articles may be used for the sole purpose of announcing membership in the Commercial Top Producers Club. The promotion must include the name of the club (Cincinnati Area Board of Realtors® Commercial Top Producers Club) and the year or years of club membership.

Section 3:  The names, pictures and company affiliation (at the close of the recognition period) of Commercial Top Producers Club recipients, in alphabetical order by Realtors®, will be placed in the Board's Information Directory and news media (Business Section) as deemed appropriate by the Commercial Top Producers Subcommittee from year to year. Recipients will be honored on the same basis with pictures of identical size. An asterisk will indicate that a member changed company after Sept. 30, 2008.

Section 4:  Those individuals who qualify for the Commercial Top Producers Club in any given recognition period may indicate the following on his or her business card in the exact 3-line format indicated below:

Commercial Top Producers Club                                    Commercial Top Producers Club

Cincinnati Area Board of Realtors®, Inc.          or          CABR

2008                                                                             1992, 1995 thru 2008

Section 5:  The recipient's name shall not be larger than the company's name and the year shall not be larger than the recipient's name.

Section 6:  Each applicant must submit with the entry form the design and format of a business card to the Board office for approval prior to printing. Approval shall be effective after the C & I awards function.

ARTICLE 10 - ENFORCEMENT

Section 1:  The Commercial Top Producers Subcommittee shall be responsible for enforcement of the Commercial Top Producers Club Rules. When it appears that a violation of these rules has occurred, the public, a member of the Board, the Commercial Top Producers Subcommittee, or Board of Directors may file a written complaint, supported by evidence.

Section 2:  The Commercial Top Producers Subcommittee, after a hearing which follows the procedure established by the Cincinnati Area Board of Realtors®, is empowered to decide the case and provide the penalties, consisting of one or more of the following:  warning, reprimand, fine or suspension from the Commercial Top Producers Club. If a fine is deemed to be the appropriate punitive measure, the fine shall be a minimum fine of $100 for the designated Realtor® involved and $100 for each agent involved and the maximum fine shall not exceed $1,000 for the designated Realtor® involved and $1,000 for each agent involved.

ARTICLE 11 - COMMITTEE

Section 1:  The Commercial Top Producers Subcommittee shall consist of at least 5 members from the C & I Committee.

Section 2:  The Subcommittee's function shall be to oversee the administration and operation of the "Commercial Top Producers Club" as per these rules and render decisions on matters pertaining to the Club, subject to approval by the C & I Committee and the Board of Directors of the Cincinnati Area Board of Realtors®.