6-INCOMING REFERRALS 2 Handbook/Incoming... · 2020-01-24 · Oakwood iPlace PHH Mortgage See the Cartus Supplier Alliances section for more complete information. Establish a follow-up

SECTION VI Copyright © 2008 by Cartus Corporation. All rights reserved.

INCOMING REFERRALS Incoming Referral Procedures ......................................................1 Referral Fees ..................................................................................2 Relocation Department Responsibilities........................................3 Criteria for Incoming Referrals.....................................................9 Referral Fees and Sample Calculations ......................................10 Agent Bonus ..........................................................................11 Corporate Buyer Referral Procedures-Sales Associate's Responsibilities.........................................................13 Buyer Standard Operating Procedures .......................................16 Seller Standard Operating Procedures ........................................17

Cartus Associate Broker Network handbook, Section VI Copyright © 2008 by Cartus Corporation. All rights reserved.

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Incoming Referral Procedures

DEFINITION OF INCOMING (INBOUND) REFERRALS: Incoming Referrals are listings/sellers or purchasers/buyers from sources outside your company. The sales associate is assigned the incoming referral by the Relocation Department and receives a commission from the sale. From this commission a referral fee will be paid.

SOURCES OF CARTUS INCOMING REFERRALS:

Cartus Corporate and Government Clients Cartus Network Brokers-both Principal and Associate Cartus Affinity Clients including USAA MoversAdvantage® (covered under separate section)

QUALIFICATIONS FOR CARTUS INCOMING REFERRALS: Cartus has specific requirements for Sales Associates that service our referrals. At a minimum these requirements are mandatory:

Must meet yearly outgoing referral/closing goals established by the Cartus Broker Services and your Relocation Department

Must have demonstrated a production level that meets company guidelines Must attend training outlining relocation and affinity service needs Must be relocation certified (Certified Agent Advantage Certification) Years of service, skills and knowledge indicate the experience level necessary to deal with a variety

of business referrals and related challenges Must support the company and Relocation Department's combined policies Current Sales Associate Profile must be on file with the Relocation Department and the Branch

Manager where applicable An Important Reminder: Referrals are company generated opportunities for the Sales Associate, and provided by the Relocation Department.


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REFERRAL FEES: Referral Fees on all Cartus business are 35% of the function side of the transaction and the total 35% is paid to Cartus. Broker to Broker Referrals (B2B) carry a 25% referral fee. 12.5% (or half of this referral fee) is remitted to Cartus Broker Services, the other 12.5% (or half) is remitted to the initiating broker. This fee structure remains the same on all referrals, even if placed with a non-Network broker. Below is an example of customer registration. All Sales Associates should be fully informed of registration policies, even though they are not servicing referrals. This should be part of new and ongoing training.

CLIENT/CUSTOMER REGISTRATION INFORMATION: Date:________________________ Name:_______________________________________________________________________________ Address:_____________________________________________________________________________ City:__________________________________________ State:_______ Zip:______________________ Employer:____________________________________________________________________________ Approximate Transfer Date:______________________________________________________________ First House Hunting Trip:________________________________________________________________ Sales Associate's Signature:______________________________________________________________ Note: Agent should register their Buyer/Seller Referral and out-of-town customers/clients with the Relocation Department to ensure they do not accept the referral from another source. The Relocation Department has 24 after confirmation of any Cartus Referral (48 hours for B2B) to close out the referral, if it is already registered. Failure to register your client may result in your having to pay a referral fee (excluding First Contact clients). Relocation Department should record all out-of-town customers. Close out the referral in Broker Center with proper code within 24 hours if your company/sales associate had this referral prior to it being initiated in Broker Center (48 hours for B2B referrals). Referral fees will be due on all Cartus referrals regardless of prior contact if the client is on the First Contact List in Broker Center.


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Relocation Department Responsibilities For complete instruction on tracking levels, status possibilities, conversion rate impact and guidelines for reason codes for each business segment, review the “Cartus Broker Network Preformance Coding – Definitions and Guidelines” in the Operating Procedures.

SOURCE OF REFERRALS: Refer to the Task Manager section in the Broker Center Users Guide for the source codes of incoming referrals.

INITIAL CONTACT: The Relocation Department manages the process flow for incoming referrals. This provides the source with a single point of contact. Relocation Department must contact customer within the designated time frame (24 hours). If you are unable to contact the customer, call the referring source, document and task immediately in Broker Center. This is important to the transferee and corporate client. It sends the message to Cartus to proceed with the file. Confirming the file does not mean the transferee is moving immediately, truly intends to list with your company, intends to buy a home in a particular location, etc. It does mean the transferee can expect benefits and precede with his/her relocation. Using the “information only” policy as a means of determining acceptance is not an option. As this method will result in unusually high conversion percentages, Broker Services will do an analysis on both very high and very low conversion rates. B2B files have a minimum of 33% conversion rate for performance. Once you have reached the customer:

Explain the service State your role Inquire as to their requirements Counsel on areas of interest Verify all information (name, address, phone numbers, e-mail, price range, correct title, etc).

A Broker Center number (case #) will be generated for this referral. The Broker Center number (case #) is referenced at the time of a sale, no sale or final closing (see Sale and Closing procedures). Confirming receipt of a file acknowledges the opportunity and your intent to contact the customer and service the lead, do not qualify the lead prior to confirmation. Corporate/Affinity to B2B lead does not protect your company from being “dinged”. Please refer to the Performance Coding section.


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There is no performance metric for Departure (listings) as the transferee is able to choose the realtor of choice for the home marketing period. It would be impossible to judge a broker on conversion with assigned sales, amended sales and inventory properties that are currently tracked under one banner. The conversion number appears on the Key Results Summary. Destination (homefinding) has a performance metric of 63%. The transferee can choose not to buy a home, rent a home or buy in a different location so our goal allows for a certain level of non conversion. After contact with the customer, a full relocation package should be sent. The package should include: ♦ Area home/rental guides ♦ School information ♦ Maps ♦ Area demographics ♦ Regional Closing Office Network member name and phone number ♦ Commute distance and time to the job ♦ Specifics requested by the customer Once contact is made with the transferee, the agent will inform the Relocation Department, who in turn will notify the source through Broker Center.

REFERRALS TO BE SHARED WITH ANOTHER BROKER: If a customer wants to look at an area not covered by your firm’s office, contact the referring source immediately for new broker placement. DO NOT REFER THEM TO ANOTHER BROKERAGE FIRM.


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SELECT SALES ASSOCIATE:

Choose the Certified A-team Sales Associate (see section regarding A-Team Criteria) who meets the proper criteria to receive incoming referral.

Encourage sales associates to talk with the departure agent (if B2B) providing the referral. Provide the sales associate with all information taken during the initial call with the customer. Have the sales associate also verify that the information given is correct. Send welcome letter and relocation kit to the customer.

FOLLOW-UP AND REPORTING: Follow-up is required throughout the entire process. ♦ Customer follow-up is critical to determine the satisfaction level with the appointed agent. If the

customer is not totally satisfied, another agent should be appointed immediately. ♦ Originating company and agent follow-up is placed and managed through Broker Center. ♦ Support of Cartus Supplier Alliance partners is the responsibility of the Relocation Department as

well as the agent. The department’s responsibility lies in monitoring the agent’s use of the partner. While Cartus has numerous Supplier Alliance partners, the ones most frequently utilized by real estate companies and agents are:

US Inspect AHS TRG Oakwood iPlace PHH Mortgage

See the Cartus Supplier Alliances section for more complete information. Establish a follow-up schedule with sales associate for status reports and with customer to determine satisfaction with service. Also provide the status update to the referral source. (If dissatisfaction with the sales associate is indicated, referring source has the right to request a change in sales associate).

SALE AND CLOSING PROCEDURES: At the point of sale (within 24 hours of verbal acceptance and 48 hours of customer signing a purchase agreement) enter Pending Sale information into Broker Center. Within 24 hours of the file closing, enter Final Sale information into Broker Center. Please see the sections on Corporate and Affinity referrals in regards to specific sale and closing procedures. Send the referral check within 5 business days after the closing takes place. You must put the appropriate Broker Center (case #) number on the check. Print and attach the Report of Sale from Broker Center and all pages of the HUD 1 to the check and send to the Cartus address below:

Cartus Services Dept CH 10231

Palatine, IL 60055-0231


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If you are sending this information OVERNIGHT please note the address below. OVERNIGHT packages will not be accepted at the above address.

Mellon Financial Services

C/O CH 10231 5505 N. Cumberland Road

Chicago, IL 60656

NO SALE PROCEDURES: If the customer decided not to use your company for their real estate needs, and the referral is deemed no longer active, the file needs to be closed through Broker Center. Please add a note to the file and task the Service Consultant in Broker Center before the file is put in No Sale status. Consult the Broker Center User Guide, Incoming Section for more complete instructions. Reason codes will be found in the Broker Center User Guide Reporting Section. ACTIVE REFERRALS: A referral will be honored for a period of eighteen (18) months, whether it is active or not. If, at the end of the eighteen (18) month period, it is determined that the referral is still actively working with your company, please notify the Broker Center Help e-mail at [email protected] and they will reactivate the referral. All files are purged at the end of the eighteen (18) month period.

ANCILLARY FEES, ADMINISTRATION OR PROCESSING FEES:

No ancillary fees, administration or processing fees of any kind can be charged by a Network broker to customers on Cartus Corporate or Affinity business.

REFERRAL ACQUIRED BY CARTUS: If a listing broker to broker referral is sent to a Cartus Network Broker and later becomes a *Corporate, Government or Affinity referral, the referral fee increases to 35%. The referring broker will receive 12.5% and Cartus will receive 22.5%, or the Broker can receive credit. See specific instructions under Broker Center Communication titled “Broker to Broker Referrals Converting to Corporate or Affinity Procedures”. *Broker to Broker referrals converting to Corporate, Government is limited to 3 per year per client.


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REFERRAL RESULTING IN MORE THAN ONE TRANSACTION On Corporate, Government, Military and Affinity files, the referral agreement language reads as follows: If this is a listing referral, and it generates a corresponding purchase transaction as well, or if this is a purchase referral that generates a corresponding sale transaction as well, you agree to pay Cartus a second referral fee of 35% of the “action side” of the commission (gross commission received by your firm) on the second purchase/sale. On Broker to Broker (B2B) no referral fee will be due on these secondary transactions unless agreed upon by each party. One exception to this is the case of a lot purchase and a subsequent contract for construction of a residence.

CLOSEOUT OF REFERRALS: Closeout/Rejection of a referral happens on a very limited basis. A prior relationship with the selected broker, discovery that the customer has already sold or purchased a property at time of placement, customer’s destination changed or you do not service the area are the only acceptable reasons for closeout. Please refer to Operating Procedures section for a detailed description of the reason codes. If, after confirmation of the referral, it turns out that your company does not service the area the zip code is listed in the Broker’s territory and the rejected file is presented as “does not service area”, the zip code will be removed from the broker’s territory list. In order to “close out” (reject) the file, you must confirm receipt. Please do not delay your confirmation in order to qualify the lead. If prior to the confirmation of a referral, a sales associate in the destination firm had face-to-face contact with the customer, or made a firm appointment with him/her, the receiving broker may close out the referral within twenty-four (24) hours (48 hours if it is a broker to broker referral) UNLESS THE CLIENT IS LISTED ON THE FIRST CONTACT LIST IN BROKER CENTER. The referral is accepted by the real estate brokerage firm-NOT BY AN INDIVIDUAL AGENT! If the referral is sold by a sales associate other than one assigned, or by anyone else within the real estate brokerage firm a referral fee is due and payable.


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SEQUENCE OF EVENTS IN RECEIVING A REFERRAL: 1. Relocation Department receives initial information from referring source. 2. The Relocation Department has twenty-four (24) hours to confirm the referral (for Broker to Broker

the time frame is 48 hours). 3. Relocation Department contacts customer, qualifies the referral and places it with the sales associate. 4. If the referral is not a qualified referral, the Relocation Department notifies the referral source via

Broker Center and gives reasons why it cannot qualify. Disputed referrals should be brought to the attention of your Regional Director.

5. Once the twenty-four (24) hour rejection period (48 hours for broker to broker) has passed the

acceptance of the referral is assumed, and a fee will be due the source of referral if the customer purchases or sells a home. Closing out a file later than 48 hours after placement (even for a valid reason is more likely to result in a “ding”.

6. Relocation Department sends monthly updates on the status of the referral until the file is closed out

or final sale information has been entered.


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Criteria for Incoming Referrals

CRITERIA FOR BUYER REFERRALS (non Affinity):

A potential home buyer to whom the service has been explained and who has agreed to be contacted by the destination area broker.

Name, address and phone numbers for the customer. Destination city and state with maximum of 2-3 separate geographic areas. First homefinding trip is within a specified timeframe, preferably six months or less. For those customers looking for employment (or retirees) a serious intent of their relocation

necessary--such as their present home being listed for sale. Type of property or price range.

CRITERIA FOR LISTING REFERRALS (non Affinity):

A homeowner interested in listing property to whom the service has been explained, and who has agreed to be contacted b the designated broker serving the geographic location of the property.

Conforms to local zoning and standards

Not presently listed or soon to expire

Deemed to be salable by the destination area broker

RENTAL REFERRALS: Rental referrals for prospective tenants and prospective rental listings are accepted at the discretion of the destination broker. They are not put into Broker Center and are not given a case number. A Cartus Network Broker will be expected to provide assistance to those Cartus corporate clients for which a rental contract is in force. If a rental referral purchases within eighteen (18) months of the initial contact by the destination broker, a referral fee is due and payable in accordance with the referral fee schedule in effect at the time of initiation.

INFORMATION ONLY: Info Only status is an option for Network and Affinity placements. When a file is tagged as Info Only, it does not count toward the company’s referral goals. Refer to the Operating Procedures section for complete information in the document titled “Cartus Broker Network Performance Coding – Definitions and Guidelines”.


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Referral Fees and Sample Calculations

REFERRAL FEES: Each Cartus Broker in the Network has entered into an agreement with Cartus to pay a referral fee on all incoming referrals whether the source is from Cartus or from another broker in the Network (Principal or Associate). The following will explain how the referral fee is calculated as well as where to send the fee and how to present the information.

FEES: The fee paid by a Cartus Network Broker on Cartus Business is 35% of the function or "referred" side of the transaction. In the case of an incoming buyer, the Network broker is to pay 35% of the selling commission. On the sale of an incoming listing referral the amount due Cartus is 35% of the listing commission. The 35% referral fee is paid directly to Cartus within 5 business days of the closing of escrow and should be sent to:

Cartus Mellon Financial Services c/o CH 10231 Dept. CH 10231 OVERNIGHT 5505 N. Cumberland Road Palatine, IL 60055 Chicago, IL 60656

SAMPLE CALCULATION (CORPORATE/AFFINITY REFERRALS): Presuming:

Purchase price of $100,000 Commission rate of 6% List/sell cooperative split 50/50 Homefinding/homeselling referral Sale was co-brokered

Cartus’s referral fee would be calculated as follows: $100,000 Purchase Price X 6% Commission Rate $ 6,000 Gross Commission X 50% Selling Function Split $ 3,000 Commission on Function Referred by Cartus X 35% Cartus Referral Fee $ 1,050.00 Amount due Cartus The same formula will be applied to a listing referral with the referral fee equaling the same as above calculation.


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AGENT BONUS It is Cartus’s position that the bonus paid is a benefit to the agent. Therefore, the agent bonus should be dealt with separately from the gross commission paid and the referral fee. That means the bonus should be a separate line item from the commission on the HUD1 Settlement Charges.

Guidelines • The commission should not be discounted or changed in any way to accommodate the agent bonus.

The network firm owes Cartus a referral fee based on the full action side of the full commission. Incorrect Example: Sale Price $100,000 Gross Commission 6% 50/50 split Action Commission $3,000 Agent Bonus -$1,000 Commission used to calculate referral fee $2,000 Cartus Referral Fee 35% Incorrect fee to Cartus $2000 x 35% = $700 referral fee • The agent bonus amount must be reflected as a separate line item on the HUD under Settlement

Charges, with the amount noted. • If an exception occurs to this policy that affects the amount due Cartus, call your Cartus Regional

Director immediately.

Correct Example: Sale Price $100,000 Gross Commission 6% 50/50 split Action Commission $3,000 Agent Bonus $1,000 Cartus Referral Fee 35% Due Cartus $3000 x 35% = $1,050 referral fee


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For an outgoing B2B referral the fee is 25% of the function or “referred” side of the transaction.

SAMPLE CALCULATIONS: Presuming:

Purchasing price of $100,000 Commission rate of 6% List/sell cooperative split of 50/50 Homefinding/Homesale referral Sale was co-brokered

$100,000 Sale/Purchase Price X 6% Commission Rate $ 6,000 Gross Commission X 50% Selling/Listing Function Split $ 3,000 Commission on Function Side X 25% Cartus Referral Fee $ 750 Total Referral Fee The $750 referral fee is split 50/50 with Cartus. The receiving broker is to send Cartus Broker Services $375 and send $375 to the referring broker. All of this is to be sent within 5 business days of the date of the closing of escrow. All B2B referral fees should be sent to the following address:

Cartus Mellon Financial Services c/o CH 10231 Dept. CH 10231 OVERNIGHT 5505 N. Cumberland Road Palatine, IL 60055 Chicago, IL 60656

If the commission is directly from the seller (a builder or developer, for example) then the full amount is to be considered as the referred function. On all transactions which are in-house, Cartus’s policy is that the referred function (listing or selling) represents 50% of the gross commission for that transaction. Therefore, on all in-house sales involving Cartus referrals, the commissions due Cartus should always be calculated using a 50/50 split.

WHAT TO SEND IN ORDER TO RECEIVE CREDIT FOR THE FILE: On each check the Broker Center number (case number) MUST appear along with the customer’s name. A completed copy of the Final Report of Sale Form must also accompany check. The Broker Center number must also be on the report and check. A copy of the HUD is to be enclosed with the check on all Corporate/Government/Military/Affinity files as well.


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Corporate Buyer Referral Procedures

Sales Associate's Responsibilities

PRIOR TO ARRIVAL:

You must be available to service the customer. If any situation occurs whereby the customer cannot be serviced, you must contact your Relocation

Department immediately. Initial contact with customer must be within 24 hours of confirming referral. Always identify yourself as the Cartus Network Broker Representative. Make sure the customer has your name, telephone number, e-mail address and COMPANY name. Verify all the information you have from the initial needs analysis (if Cartus did not do the needs

analysis, your Relocation Department must have made contact and completed this information). Send the relocation package (if the Relocation Department does not do this) and agree to research

schools, churches, sports facilities, etc. Confirm their homefinding trip date. Pre-screen all properties before the homefinding trip, make appointments for viewing and plan an

itinerary. Report all activity to your Relocation Department on a weekly basis.

DURING THE HOMEFINDING TRIP:

Be prompt at meeting the customer. Make sure vehicle is clean and in good running condition. Counsel the customer in your office or at a convenient location. Explain Agency Representation laws. A map should be prepared showing the location of schools, points of interest and new job location if

possible. Conduct an area tour prior to previewing homes. Know where you are going. Provide an information or MLS sheet for each home Listen to what the customer is saying and narrow down properties which most closely meet their

needs--be prepared to change. Adjust the itinerary if necessary. Review each day before starting the next one with the customers. If the customer wants to look outside your service area, refer them back to the Relocation

Department--DO NOT REFER THEM YOURSELF.


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FOLLOW UP OPPORTUNITIES:

It is important to keep in close contact with the customer. Send a thank you note after their homefinding trip with your business card enclosed Contact the customer by telephone or by mail every ten days, or as agreed. Information regarding recent sales and new listings that have come on the market are always well

received as are local newspapers. Send mailings to children and other household members that may be moving with the family (mother-

in-law, aunt, etc.)

HOME PURCHASE: Before showing a property make sure the agent offers the customer the opportunity to be prequalified by PHH Mortgage (see PHH Mortgage section). After the contract to purchase the home has been signed, the agent should notify the relocation department immediately. Provide them with the estimated closing date, financing being used, sale price, and commission. Contact the Regional Closing Office with information about the closing. Contact the customer two weeks after closing to see how they have settled into their new home and neighborhood. These customers could become a good source of referral business for you!

KEY THINGS TO REMEMBER: INCOMING REFERRALS

Contact customer within 24 hours of receiving the referral.

Contact Relocation Department immediately if unable to service this customer.

Be prompt, have a professional appearance and a clean car. Offer to pick them up at the airport/hotel.

Know the market area you are showing.

Always prescreen properties, make appointments in advance.

Plan the itinerary for the homefinding trip….be prepared.

Always attend the closing.

Never refer a customer to another agent if the customer wants to look outside your service area. Refer them back to the Relocation Department for additional assistance.

Contact customer every two weeks until purchase has been made.

Follow-up with customer after closing to ensure they have successfully settled in their new

home/community.


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KEY THINGS TO REMEMBER: DESTINATION SERVICES

Identify the type of Destination referral

Confirm Expectations

When to contact customer

Where to contact customer

Who to follow up with at Cartus

Agent Selection is critical

Be in tune with family needs not just transferee needs.

Assist customer with temporary living if needed

Support usage of PHH Mortgage with each transaction – do not redirect

Support usage of the Regional Closing Office – do not redirect

Support usage of Cartus Supplier Alliances – do not redirect

Notify Consultant when sale occurs

Follow up, follow up, follow up

Keep in touch with the customer through closing.


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Incoming Referrals Standard Operating Procedures

Buyers:

Each “A” Team Agent must be Cartus certified by completing the Certified Agent Advantage program.

Relocation Agent must contact the transferee on the same day of receiving the referral.

The Relocation Department also must contact the Transferee within five days of Agent assignment to check on the Transferee’s satisfaction with appointed Agent.

Relocation Department is responsible for notifying Cartus in Broker Center with the name

and telephone number of the appointed Agent.

Agent or Relocation Department must send relocation package and customized information based on the needs of the Transferee within three days of receipt of referral.

Agent will discuss service expectations, the team concept, and the Service

Evaluation/Performance Questionnaire (PEQ) with Transferee at initial visit.

Agent must provide full disclosure and explanation of all types of agency representation offered in state.

Real Estate Company reinforces mortgage participation. Agent should discuss PHH

Mortgage at initial visit.

Agent will provide updates to the Relocation Department bi-monthly. Relocation Department will notify Cartus of pending sale within 48 hours of contract ratification.

Agent must communicate status updates on the home-buying process to the Transferee

every week from contract to close (or a mutually agreed upon schedule).

Agent (or agreed upon designee) will attend closing with the Transferee.

Agent should immediately notify Relocation Department of closing and provide final sale information. Relocation Department will enter final sale information and mail checks with HUD 1 and Report of Sale to Cartus within 24 hours of funding.


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Incoming Referrals Standard Operating Procedures

Sellers:

Each “A” Team Agent must be Cartus certified by completing the Certified Agent Advantage program.

Agent must contact the transferee on the same day of receiving the referral. The

Relocation Director also must contact the Transferee within five days of Agent assignment to check on the Transferee’s satisfaction with appointed Agent.

The Relocation Department is responsible for notifying Cartus in Broker Center with the

name and telephone number of the appointed Agent.

Agent should mail Market Analysis to Transferee based on the needs of the Transferee within five days of receipt of referral.

Agent will discuss service expectations, the team concept, and the Service

Evaluation/Performance Questionnaire (PEQ) with Transferee at initial visit.

Agent must provide full disclosure and explanation of all types of agency representation offered in state. (Example: Dual Agency)

Agent will provide updates to the Relocation Department bi-monthly. Relocation

Department will notify Cartus of pending sale within 48 hours of contract ratification.

Agent must communicate status updates on the home sale process to the Transferee every week from contract to close (or a mutually agreed upon schedule).

Agent (or agreed upon designee) will attend closing with the Transferee.

Agent should immediately notify Relocation Department of closing and provide final sale

information. Relocation Department will enter final sale information into Broker Center and mail check with HUD 1 and Report of Sale to Cartus within 24 hours of funding.

Documents

6-INCOMING REFERRALS 2 Handbook/Incoming... · 2020-01-24 · Oakwood iPlace PHH Mortgage See the Cartus Supplier Alliances section for more complete information. Establish a follow-up