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Virginia 8 Hour Broker Seminar
- 1. BROKER CE 2015 TheAgentTrainer.com | @MattRathbun Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SFR, SRS, SRES
- 2. Agency PowerOfRelationships Matthew Rathbun, Broker ABR/M, AHWD, CDPE, CRB, CRS, e-PRO, GREEN, GRI, SFR, SRS Agency Relationship and Duties What You re In For Today Commission Personal Service Agreements Risk Management Agent Relationships and Duties Agency is A Term of Art
- 3. Great, let’s find out how we got here... So, You ve Decided To Get Married! ...and how we keep this relationship safe Client What YOU Say and Do Can Establishes Who THEY Are Customer Independent Contractor Dual Agency Designated Agency Non-Client (The Rest Is Paperwork) HONESTY As in all relationships, we have some stuff we have to do... OBEDIENCE LOYALTY CONFIDENTIALITY DISCLOSURE ACCOUNTING REASONABLE CARE
- 4. Personal Service Agreements [Yes, you MUST, SHALL, WILL, have a written agreement before showing property, giving advice or listing a property.] Agency disclosure MUST be made in writing prior to substantial discussions about a specific property or service. (DPOR memo August 2012) • Listing Agreements • Buyer Agreements • Landlord Agreements • Tenant Representation • Property Management • Independent Contractor What Has To Be In Writing? Implied Agency Genesis Expressed Agency
- 5. (Tamed) What Type of Agreement Do You Have? (Wild) Exclusive Non-Exclusive Benefits Of The Agreement Outlines Mutual Responsibility Defines Loyalty Ensures You’ve Disclosed All That You Must Shows Evidence of Agreement and Disclosures Required By Law Limits Role The Forms
- 9. So, When DoesThat GetTurned In? A licensee may act as a dual representative only with the written consent of all clients to the transaction. Such written consent and disclosure of the brokerage relationship as required by this article shall be presumed to have been given as against any client who signs a disclosure as provided in this section. Dual and Designated Agency Tolerated 54.1-2139 5 Required Elements Virginia s Dual Agency Disclosure • Licensee may have already provided guidance to one of the two parties. • Licensee cannot provide advice (including recommended repairs) to the buyer, or advice about suitability • Licensee cannot provide advice on disputes • Client’s inexperience is not a factor • Either party may engage another Realtor after ratification
- 10. • Revocation • Renunciation • Death of Principal / Agent • Insanity • Bankruptcy • Illegal • Destruction • Expiration Terminating Relationships Commissions • MLS Dictates • MRIS Article IV, Section 15 • Code of Ethics Considerations • Arbitration • Who Do You Work For? Negotiating The Commission Standard of Practice 3-2 revised Any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the property. (Amended 1/10) Changing the Commission
- 11. Procuring Cause Unbroken Chain of Events resulting in a closed transaction. Risk Management Standard of Practice 16-20 revised REALTORS®, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude REALTORS® (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements. (Amended 1/10) Taking The Client Along • Imputed Knowledge • Imputed Notice • Material Facts Disclosure • Latent Facts Disclosure Conveying What You Know
- 12. • Who Has Coverage Under E and O? • Who Has Agency Relationship? • What Is The Agent’s Limitations? • Who Get’s Paid? Company Transfers • False information provided by Seller • Revealing information required by law • Misrepresentation made by sub-agent (unless broker / licensee should have known) • Negligence or gross negligence or intentional acts of the Assisting Broker / Salesperson Limit To Liability Facebook.com/mattrathbun @mattrathbun Matthew@TheAgentTrainer.com www.TheAgentTrainer.com YouTube.com/MattRathbun1 CE - 61522 PLE - 61271
- 13. Real EstateTechnology TheAgentTrainer.com | @MattRathbun Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS TheAgentTrainer. com @MattRathbun Husband and Father Broker Thinks He’s Funnier Than He Is… Disrupter Story Teller TheAgentTrainer .com/TechRisk Resources | SlideDeck | Videos | Tools Today’sJourney Trends Tools Techniques Troubles
- 14. Share Your Ideas As We Go! It is not the strongest of the species that survive, not the most intelligent, but the one who is most response to CHANGE. - Charles Darwin Trends YouTube Moment Microsoft Vision
- 15. Drones 3D House Models Predictive Client Models
- 16. Social Media The Mobile Client The Digital House The Surveillance Game
- 17. Big Data Virtual Staging Green | Paperless The Cloud
- 19. Evernote .com EasyEmerge .com HouseLogic .com NARRPR. com
- 20. Amitree. com closeit.mris. com Updater. com Ribbet. com
- 21. Canva. com GetPocket .com Trello .com Hemingwayapp. com
- 26. Cyber Stalking BadBehavior •Centralized Showing and Lockbox • Agent Impersonations Online • Access of Client Databases • Shared Lockbox Access • Shared MLS Entry • Computer Threats • (By and Against Agents) • Defamation • Unlicensed Practice of Law • Breach of Confidentiality of Clients • Copyright Violations • Untrue Statements • Trademark Considerations • Necessity for Required Disclosures BadBehavior LegalAdvice
- 27. Techniques Google. com GoogleAlerts www.Google. com/Alerts PolicyConsiderations • Instruct agents and those posting to use caution when posting; • Realize that blogs can be viewed as an advertisement and follow all applicable rules; and • Don’t select and edit messages – it could subject you to greater liability because you are taking a more active role in the publishing the contents.
- 28. PolicyConsiderations • Further steps you can take to reduce your liability: • Post only material you own, you have permission to use, or that is with the scope of fair use (generally includes review, news reporting, teaching, or scholarly research); • Remove infringing content immediately; • Have a well-crafted Terms of Use Facebook.com/mattrathbun @mattrathbun matthew@cbeva.com YouTube.com/MattRathbun1 ThankYou
- 29. Risk Management TheAgentTrainer.com | @MattRathbun Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS TheAgentTrainer.com @MattRathbun Husband and Father Broker Thinks He’s Funnier Than He Is… He’s Been Around Story Teller What Are You Facing Today? Before you attempt to rock someone else’s house, make sure you know the condition of Your Own
- 30. Be The of The Source Source www.Varealtor .com • Starting A New Firm • Risk Management Policies • Do’s and Don’ts • Fair Housing Policy • Do Not Call Policy • Social Media Policy • DPOR Guidelines • Policy Manual Template ConsumerFinance.gov Elitescoop. com/cfpb2015
- 31. Powers •Authority to Create Laws •Subpoena Powers •Power To Author Rules •Create / Modify Forms •Identify Unfair Practices •Arbitrate •Enforcement Authority Background •Dodd-Frank Act •1,188 Pages •Merges RESPA and TILA Goals • Easier-to-use Mortgage Disclosure Forms • Improve Consumer Understanding • Aid Comparison Shopping • Prevent Surprises at Closing Table The Loan Estimate Provided to consumers within three business days after submission of loan application Replaces early TIL statement and GFE Provides summary of key loan terms and estimates of loan and closing costs Idea to promote comparison shopping The Closing Disclosure Received by consumers three business days before consummation Replaces final TIL statement and HUD-1 Settlement Statement Provides detailed accounting of transactions New Forms
- 32. New Forms HUD-1 = Closing Disclosure GFE = Loan Estimate Loan Estimate Closing DisclosureOld GFE Old HUD-1 3 days from application 3 days prior to closing 7 days prior to closing (waiver for bona-fide emergency) Revision Required Enforcement $5,000-$2500 Per DAY, with $1,000,000 cap
- 33. Escrow Law Review Maintenance of Escrow Accounts | Broker Responsible | Account Marked Escrow | Federally Insured | Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the parties to the transaction, and shall remain in that account until the transaction has been consummated or terminated. 18VAC135-20-160 B-1 Disbursement: Mutual Consent
- 34. Disbursement: Broker Discretion • Letter of Notice • Hand Delivered • Certified Mail • 30 Day Notice • If within 90 days, notice can be by electronic notice, as outlined in the contract Disbursement: Court System Disbursement: Interpleader Change in escrow cap for hearing in General District Court versus Circuit Court Interpleader - Third party surrendering a dispute to the court on behalf of two other parties. 2015 Regulatory Update
- 35. Continuing Education Continuing Education hours taken in the last six months of a licensing cycle, which are in excess of those needed for re-certification, will be rolled over to the next 2 year cycle Unlicensed Assistants • Cannot Show Property • Must Be Paid a Salary/Hourly • Cannot Give Opinion/Advice • Cannot Hold Open Houses • Measure Homes • Host Walk-Throughs • Can Act as Courier • Can Organize Documents • Can Schedule Appointments • Can Place Signs • Can Produce Marketing Under Supervision of Agent • Employment Is Subject To Approval of Broker EMD Disbursement Once parties have agreed to order the disbursement of the EMD, the broker shall make disbursement to the receiving parties within 20 days. Document Retention Agents are required to turn certain documents a timely manner, and the Broker is required to retain a copy of the following documents for 3 years. The documents will be complete and legible. Includes Settlement Statements, Personal Service Agreements and Executed Agreements.
- 36. Advertising Advertisement on “electronic media” requires the following: • City and state of Branch office you report to • Name of Firm • Agent’s name These disclosures must be on the viewable page of the website on electronic media or no more than one click away. Advertising For Sale and For Lease signs that are placed on properties must have the following: • Firm name • Firms PRIMARY telephone number • Note: Agents with personal signs, must update them to have the Firm’s telephone number on them. Agents may add their mobile number, but that would be in addition to the Firm number. There can be no confusion as to which number is which on the sign. Advertising Agent’s business cards must have: • Firm name • Agent’s name • Agent’s contact information which may be phone number, web address or email address Family Disclosure Disclosures when representation for a member o the agent’s family must be disclosed to all parties at the first substantive conversation regarding the specific property.
- 37. Prohibited Acts Failure of agent to turn in all EMD checks, contracts, listing agreements, etc... in a timely manner to the firm. Prohibited Acts • Practicing with an expired license is a violation • Agents who allow their license to expire may not be paid any commissions during that time in which their license is expired or inactive. In the past we could pay commission to agents for work done prior to expiration or the license going inactive. That is no longer the case. • Absolutely no real estate related activities may occur by an agent who's license is inactive or expired. Prohibited Acts Unsupervised access to property is now a violation. In the past, only the lockbox rules required an agent to remain with clients when the agent opened the house. Prohibited Acts Agents may not sign or initial documents on the client’s behalf without prior written permission or authorization.
- 38. Prohibited Acts Agents may not submit copies of the same EMD check for more than one offer. Emerging Issues Green Washing • FTC Sets Guides for Enviromental Claims • Be Clear On Your Experience • Retrofitting • Tax Credits • Geothermal Systems • Certifications • Re-Testing • Expert Testers Negligent Referrals
- 39. Recommended Language “The following list of vendors provides various services to buyers and sellers in Fredericksburg, VA. I’ve developed this list to assist clients while in a real estate transaction. Neither I nor [Brokerage Name] warranty these providers or their work. Consumers are encouraged to research their choices by whatever means they deem necessary. Clients are free to use any vendor that they prefer. This list is simply a starting point and clients are free to search online or other trusted resources to obtain referrals. If you are looking for repair providers and your home is built in the year of 1978 or before, please check the EPA website to find vendors, as special training is needed for certain work to be performed on your home. The providers listed below are not guaranteed to meet the criteria of the EPA” Coming Soon and Pre- MLS • Defined • Who Benefits • Documentation • Advertising Ability • Insurance • Agency Coverage • Compensation What E & O Doesn’t Cover • Injury or Property Damage • Fair Housing • Fraudulent Acts • Employment Issues • Assistants • Staff • False Advertising • Patents and Trade Secrets • Owner Agent Listings • Gross Negligence Virtual Staging
- 40. Social Clients Photographic CopyRight Client Ratings Home Inspections • When • Information Only • Full Reports • Negotiations • Receipts • Contractors
- 41. Stigmatized Properties • Hauntings • Communical Diseases • Crimes in Property Facebook.com/mattrathbun @mattrathbun matthew@cbeva.com YouTube.com/MattRathbun1 ThankYou