SMTAR Lockbox Program Policy

SUMMARY
The Southern Middle Tennessee Association of REALTORS® (SMTAR) has implemented the Sentrilock Lockbox System (the Lockbox System). Designated REALTOR® and individual REALTOR® participation in the Lockbox System is strictly voluntary and subject to the terms and conditions set forth in this policy.

SMTAR has elected to offer a Lockbox Program that will allow its members to borrow lockboxes. The terms of the Lockbox Program are defined within this policy.

REALTOR® Membership in the Southern Middle Tennessee Association of REALTORS® constitutes acceptances of this policy, regardless of participation. (SMTAR Bylaws, Article VII, Section 2)

Persons who are NOT members of SMTAR are permitted to open the key compartment of SMTAR-owned lockboxes when showing a property, however they cannot place a SMTAR-owned lockbox on their listings. This may result in additional fees to the broker or termination of the Lockbox Program for the firm.

DEFINITIONS
1. Association – the Southern Middle Tennessee Association of REALTORS®
2. Card – a device used to open or access the electronic lockbox
3. Designated REALTOR® - Principal broker or primary appraiser of a member company, responsible for licensees affiliated with their company
4. Key – for the purpose of this policy, a key may either be a device used to access an electronic lockbox or a key used to directly access an entryway of a property
5. Listing – a property listed in the RealTracs multiple listing service
6. Lockbox – an electronic device designed to store keys and log access to those keys
7. Lockbox Program Participant – a licensee who borrows lockboxes from SMTAR or a licensee affiliated with a company who borrows lockboxes from SMTAR
8. Member – a REALTOR® member of the Southern Middle Tennessee Association of REALTORS®
9. REALTOR® - Active member of the National Association of REALTORS®; in terms of this policy also an active REALTOR® member of the Southern Middle Tennessee Association of REALTORS®
10. Team Member (Sentrilock) – Team Members, for the purpose of this policy, are connections established in the Sentrilock database to allow an individual to have full or partial access to another individual’s lockboxes.

1. ISSUANCE OF LOCKBOX(ES)
a. Any valid SentriKey account holder may elect to purchase a Sentrilock Lockbox at the designated market/member price.

b. Designated REALTORS® have three options for participation in the SMTAR Lockbox Program.

OPTION 1	OPTION 2	OPTION 3
Opt In to the Lockbox Program	Opt to Allow Individual Agents to Opt In to the Lockbox Program	Opt Out of the Lockbox Program
Refer to “Lockbox Program”	Refer to “Lockbox Program”	Agents may purchase lockboxes only

2. LOCKBOX PROGRAM
The SMTAR Lockbox program has been established to provide participants with a cost-effective solution for expanding the showing capabilities for listed property.

FEES

LOCKBOX MAINTENANCE AND SERVICE FEE
An annual Lockbox Maintenance and Service Fee will be charged to all REALTORS® affiliated with Option 1 Participant companies and to all Option 2 Participants to allow the Association to recover, in part, expenses necessary in sustaining, and operating, the Lockbox System. Such assessment will be in an amount as established annually by the Board of Directors and will be due and payable upon receipt of invoice. Invoicing will occur in July each year. The purpose of this fee is to allow SMTAR to continue to operate and maintain a lockbox system for its members. This fee is prorated monthly.

The Lockbox Maintenance & Service Fee will be charged to Program Participants for any individuals established as Team Members to the Participant in the Sentrilock database.

Note: Principal brokers who select option 1 will be billed for any agents who do not pay the Lockbox Maintenance & Service Fee upon joining or at each subsequent renewal.

LOCKBOX ADMINISTRATION FEE
An annual Lockbox Administration Fee is charged to Option 2 participants to recoup expense of staff time in managing day-to-day inventory administration. This fee is not prorated.

OPTION 1
Designated REALTOR® elects to manage inventory at the office level. Lockboxes are loaned to the Designated REALTOR® only.

(a.) Designated REALTOR® will be supplied with enough lockboxes to lock each of their active and pending listings within the Association jurisdictional boundaries as determined by information obtained from RealTracs Solutions, plus five (5) additional lockboxes to hold in office for use by his/her agent(s) within the jurisdictional boundaries of SMTAR. The jurisdictional boundaries of the Association are determined and assigned by the Tennessee REALTORS® and is defined as the counties of Giles, Lawrence, Lewis, Lincoln, Marshall, Maury, Perry and Wayne.

(b.) Designated REALTOR® may request additional lockboxes, up to ten(10), at any time and such request will be granted, providing that the number of active and pending listings plus five (5) does not exceed the number of lockboxes currently assigned to the Designated REALTOR® per the records of the Association. If Association records indicate that Designated REALTOR® has been issued more than one lockbox per active and pending listing plus five (5), the request will be denied until such time as Designated REALTOR can provide an accurate accounting of lockboxes with locations.
NOTE: A new Designated REALTOR® may request lockboxes per policy, as stated in paragraph (a). Lockboxes will be supplied at time of request dependent upon inventory available. Should SMTAR be unable to supply the necessary number of lockboxes, a backorder will be placed and will be filled upon receipt of the next shipment.

OPTION 2
Designated REALTOR® elects to allow affiliated agents to manage their own lockbox inventory. Lockboxes are loaned to individual REALTORS® within the company.

(a.) REALTOR® member will be supplied with one lockbox to lock each of their active and pending listings within the jurisdictional boundaries of the Association, as determined by information obtained from RealTracs Solutions. The jurisdictional boundaries of the Association are determined and assigned by the Tennessee REALTORS® and is defined as the counties of Giles, Lawrence, Lewis, Lincoln, Marshall, Maury, Perry and Wayne.
(b.) REALTOR® member may request an additional lockbox at any time provided the member can supply Association staff with a correct address for property and such property is located within the jurisdictional boundaries of the Association. As listings sell, expire or become off the market for any reason, lockbox will be returned to the Association office. Exception: A lockbox may be transferred from one listing to another provided the member notifies Association staff of new location of lockbox.

LOCKBOX INVENTORY
A physical lockbox inventory is due APRIL 1st of each year and at any time as requested by Association staff.

(a.) Program Option 1 | Designated REALTOR® will be responsible for maintaining their lockbox inventory and reporting such inventory to the Association as required. Designated REALTOR® and affiliated licensees will not be charged an Administration Fee when they maintain an in-office inventory of lockboxes.

(b.) Program Option 2 | REALTOR® Participant will be responsible for maintaining their lockbox inventory and reporting such inventory to the Association as required. REALTOR® member (Option 2) agrees to pay an annual Lockbox Inventory Administration Fee of $25 for this service. This fee will be billed each June and will not be prorated. NOTE: This is not the same as the Lockbox Maintenance and Service Fee mentioned later in this document.

(c.) Lost/Stolen Lockboxes | Lockbox(es) that cannot be accounted for during regular use or through physical inventory will be paid for by the Designated REALTOR® or REALTOR® Participant at an amount that is the same as current cost to the Southern Middle Tennessee Association of REALTORS®. At such time, in the future, that the lost lockbox is located, a full refund will be issued to REALTOR® upon satisfaction of proof. Boxes lost prior to June 2020 are no longer eligible for refund. Lost lockboxes should be immediately reported to the Association. The reimbursement cost of lost lockboxes is based on market pricing on the date of reporting to SMTAR.

MAINTENANCE
It is expected that Program Participants will ensure that lockboxes borrowed within the program are safeguarded and well-maintained. Lockboxes should not be exposed to excessive liquids or substances that may cause damage to the internal circuitry. Lockbox batteries should be replaced at regular intervals to ensure the lockbox remains in working order. If lockbox batteries are removed, they should be immediately replaced (within a few minutes.) If the battery cannot be immediately replaced, do not remove the battery until replacements can be obtained. In the event of battery leakage, it is recommended that the battery be removed and the lockbox returned to the SMTAR office within 24 hours. Be aware that improper installation of the batteries will render the lockbox inoperable.

DAMAGED LOCKBOX(ES)
Lockbox(es) that are malfunctioning should receive troubleshooting from the Sentrilock support staff at 877-736-8745. Defective or damaged lockboxes should be returned to the Association immediately. Non-working lockbox(es) owned by SMTAR will be replaced at no cost. Lockboxes owned by the REALTOR® are subject to the Sentrilock warranty terms.

LOCKBOX(ES) OUTSIDE JURISDICTIONAL BOUNDARIES
Program participants may purchase a lockbox for use in areas outside the Association jurisdictional boundaries at an amount that is the same as the current cost to the Association. The Board of Directors reserves the right to set special member pricing

Lockboxes that are purchased by a member become the property of said member and the following conditions apply:

Purchased lockbox(es) are not required to be counted in annual inventory.
Purchased lockbox(es) are subject to the warranty terms of Sentrilock
For any issues with lockbox, member must contact Sentrilock to troubleshoot the lock and the lock must be determined to be defective by Sentrilock.
For any warranty replacement, the broken lockbox must be removed by locksmith or returned to the SMTAR office immediately upon determination of defective status.
Purchased lockbox(es) may be returned to the Association for a refund in the amount of fifty percent (50%) of the amount which was paid.
NOTE: This applies only to those lockboxes purchased from SMTAR and only those lockboxes purchased OCTOBER 2020 OR AFTER.

REIMBURSEMENT
Program participants agree to reimburse the Association for any and all expenses incurred by the Association in attempting to recover costs for missing or unaccounted lockboxes. If the Association commences legal proceedings against the Program participant to collect fees or to enforce any provision of this Agreement, Designated REALTOR® and/or his/her agents agrees to pay all costs incurred by the Association together with the Association’s reasonable attorney’s fees.

3. KEY AGREEMENT
The Southern Middle Tennessee Association of REALTORS® administers disbursement of keys to access the Lockbox System. However, the key lease agreement is between the member and RealTracs Solutions and all costs applying to such agreement are to be paid to RealTracs. The Association may, at its discretion, charge a setup fee for first-time keyholders.

Participation in the SMTAR Lockbox Program requires an SMTAR-administered key account. Accounts issued outside of the SMTAR system may be moved to facilitate billing and administration procedures.

4. INDEMNIFICATION
Lockbox and key users covenant and agree to indemnify and hold the Association and its other members harmless from any and all loss, expense, liability, obligations, or demands arising out of or in any way connected with the loss or use of the Lockbox System with said indemnity to include reasonable attorney’s fees.

DISCLAIMERS/ADDENDUMS
Because electronic lockboxes may experience periodic malfunction, users should ensure that their clients hold additional keys to the property.

Electronic lockboxes should be placed on the doorknob or under cover when possible, to prevent damage.

Users should limit the keys stored in the box to prevent malfunction of the key compartment. It is recommended to enclose keys only. Do not use key rings, key tags, notes, business cards etc.

304 River Rd • Columbia, TN 38401