Guarantees (RMCO)

9 Months Ended

Sep. 30, 2013

RMCO

Guarantees

(9)Guarantees

In July2012, the Company entered into a guarantee of performance by Tails d/b/a RE/MAX Central Atlantic Region, Inc. of all of the obligations under the franchise registration in the Commonwealth of Virginia, and all of the preopening obligations under the franchise agreements executed at any time from July23, 2012 until such time that this guarantee is no longer required by the Commonwealth of Virginia. The Company did not incur any payments under this guarantee in the three and nine month periods ended September30, 2013 or 2012, respectively and does not anticipate that it will incur any payments through the duration of the guarantee.

In May2013, the Company entered into a guarantee of the full and prompt payment and performance when due of all obligations due to a financial institution under a commercial line-of-credit agreement and note entered into by the Company’s equity-method investee, in which the Company has a 50% interest. The term of the line-of-credit agreement is twelve months and the total amount of advances requested and unpaid principal balance cannot exceed $12,500,000. The line of credit bears interest at 0.50% over the financial institution’s base rate with a floor of 4.0%. The Company had entered into a similar guarantee during May2012, which expired as of May2013. The outstanding balance on the line of credit was approximately $3,225,000 and $9,285,000 as of September30, 2013 and December31, 2012, respectively. The Company did not incur any payments under this guarantee in the nine months ended September30, 2013 and does not anticipate that it will incur any payments through the duration of the guarantee.