What Should Be Included in Your Brokerage Policies & Procedures Manual

A policies and procedures manual should be a complete and easy-to-understand guidebook that clearly defines the company’s mission, rules, code of ethics, employee expectations and laws pertaining to real estate. Every real estate agent, office employee and company representative should be given a copy of the manual upon employment. That way, no one can say they don’t have written documentation of the company rules. Referring to a good policy and procedures manual can help prevent (and provide resolution to) office disputes before they get out of hand. Plus, it could potentially save a brokerage from a major lawsuit down the road while protecting the reputation of the company. Here’s a few important items that should be included in a policy and procedures manual:

Dress for Success

A dress code doesn’t have to be too complicated; however, one should be clearly established so that real estate professionals are clear on what is (and isn’t) acceptable to wear while representing the company. In certain situations, a dress code should be implemented for safety purposes as well.

No Substance Abuse

Most companies these days have a no smoking policy indoors and a designated smoking area outdoors. A substance abuse policy and the consequences for coming to work under the influence of alcohol and/or drugs should always be included in a policy and procedures manual.

You’re Fired

When a real estate agent or other employee fails to abide to company policy, termination can be inevitable. A clearly defined list of “causes for termination” specifically designed for the real estate industry can nip any potential accusations of wrongful termination.

Commission Details

Real estate requires that all sales commissions are paid to a brokerage and then the brokerage pays its agents. There are other factors that affect commissions as well. Commission spats can be avoided when the commission structure is clearly laid out in policy and procedures.

When The Boss Is Away

It should be noted who’s in charge when management is away. Such a rule can help keep a brokerage firm running smoothly under any circumstances and give management peace of mind while they’re away. Plus, it could potentially alleviate power struggles between agents and staff.

Relationships Matter

An explanation of the relationship between broker and agents, management and office staff (and their job descriptions) is important to note in a policy and procedures manual. This can be especially helpful for those who are new to the real estate business.

No Discriminating

A policy and procedures manual should cover the Fair Housing Act which clearly prohibits real estate professionals from discriminatory behavior through advertising or negotiating the sale of property and/or rentals. Local laws and ordinances should be noted.

In spite of a complete policy and procedures manual, issues can still flare up. A good Errors & Omissions policy (E&O Insurance) can help protect your brokerage from costly lawsuits. For more information visit RealShieldInsurance.com