AcknowledgmentsReal Estate Center StaffGary Male.docxnettletondevon
Acknowledgments
Real Estate Center Staff
Gary Maler, Director
David Jones, Communications Director
Robert Beals II, Art Director
Denise Whisenant, Education Coordinator
MCE Writing Group
Richard Crow
Kerri Lewis
Marty Kramer
Sharon Teusink
Byron Underwood
Ron Walker
Denise Whisenant
Avis Wukasch
Texas Real Estate Commission
Avis Wukasch, Chair
Bill Jones, Vice Chair
Joanne Justice, Secretary
Troy Alley
Adrian Arriaga
Jaime Blevins Hensley
Weston Martinez
Thomas (TJ) Turner
Chart Westcott
Real Estate Center Advisory Committee
Kimberly Shambley, Chairman
C. Clark Welder, Vice Chairman
Mario Arriaga
James Boyd
Russell Cain
Jacquelyn Hawkins
Walter “Ted” Nelson
Stephen “Doug” Roberts
Ronald Wakefield
Bill Jones, ex-officio
Foreword
In cooperation with the Texas Estate Commission, the Real Estate
Center at Texas A&M University developed this real estate broker respon-
sibility curriculum with the assistance of a content writing group using
information from publications, presentations and general research. The
information is believed to be reliable, but it cannot be guaranteed insofar
as it is applied to any particular individual or situation. Laws and rules
discussed in the textbook have been excerpted, summarized or abbrevi-
ated. For a complete understanding and discussion, consult a full version
of any pertinent law. Information in this textbook can change periodically
and is presented with the understanding that the authors and instruc-
tors are not engaged in rendering legal, accounting or other professional
advice. The services of a competent professional with suitable expertise
should be sought.
The authors, presenters, advisory committees, Real Estate Center and
Texas Real Estate Commission disclaim any liability, loss or risk personal
or otherwise, incurred as a consequence, directly or indirectly, from the
use and application of any of the information contained in these materi-
als or the teaching lectures and media presentations given in connection
with these materials.
When using this textbook for the Broker Responsibility course, as
required by the Texas Real Estate Commission, the textbook must be
reproduced and used in its entirety, without omission or alteration.
Contents
Chapter 1: Introduction 1
* Purpose 1
* Who Must Take This Course? 1
* Regulations for Brokers 1
Chapter 2: Scope of Activities and Authorization 3
* Authority and Competency 3
* Recruiting License Holders from Other Brokerages 4
* Employee or Independent Contractor? 4
* Errors and Omissions Policy 5
Chapter 3: Fiduciary Responsibility/Agency 7
* Representation 7
Chapter 4: Trust Funds 11
* A Salesperson Shall Not Maintain a Trust Account 12
Chapter 5: Property Management 13
* Check the Right Box 13
* Leasing Agent Responsibilities 13
* Property Management Responsibilities 13
Chapter 6: Delegated Licensed Supervisor 17
* Relationship Management Tool (Appendix A) 17
* Relationship Management Tool (RMT) Highlights 17
.
This document provides an overview of a commercial real estate ethics training presentation. It discusses:
1) Part 1 defines ethics and discusses how ethics come from one's environment and learned behavior. It also addresses varying degrees of oversight and regulations related to ethics.
2) Part 2 reviews regulations from the Department of Labor Licensing and Regulations (DLLR) and the National Association of Realtors Code of Ethics. It discusses how to file an ethics complaint.
3) Part 3 defines predatory lending and flipping, and discusses understanding mortgage fraud through included video links.
This document outlines the class outline for an Oregon law and rule required course (LARRC). The course covers several topics related to Oregon real estate law, including advertising rules, rent control exemptions for affordable housing, rental assistance legislation during the pandemic, rental application screening laws, and federal and state fair housing laws. The class is presented by Matt Sandler from Oregon State Counsel and will help real estate brokers and property managers comply with changing regulations in Oregon.
This document summarizes the historical development of statutory duties to handle insurance claims fairly and provides an overview of unfair claims practices and regulations. It discusses how the National Association of Insurance Commissioners adopted model acts in 1971 and 1990 addressing unfair claims settlement practices. Most states have adopted versions of these acts. The document reviews common requirements for claims handling, including acknowledging claims, responding to inquiries, maintaining files, and timely accepting or denying claims. It notes potential exposure for breaching the implied covenant of good faith and fair dealing.
No two chapter 11 cases are alike and no two chapter 11 cases involving a retail business are alike. There are, nonetheless, certain issues that tend to arise in most retail cases. Among them: the retention of a liquidation firm; lease assumption and rejection; the claim priority of rent during a month that straddles the Petition Date or a rejection date; and consumer deposit issues. This webinar addresses such issues.
Part of the webinar series: CHAPTER 11- INDUSTRY FOCUS 2022
See more at https://www.financialpoise.com/webinars/
1) Real estate brokers help people buy and sell homes and properties by obtaining property listings, determining market prices, and facilitating transactions.
2) Brokers earn commissions from property sales that are typically a percentage of the sale price and split among involved agents.
3) There are no specific qualifications to become a broker, but the field is competitive so brokers look for applicants with strong personalities, communication skills, and attention to detail.
AcknowledgmentsReal Estate Center StaffGary Male.docxnettletondevon
Acknowledgments
Real Estate Center Staff
Gary Maler, Director
David Jones, Communications Director
Robert Beals II, Art Director
Denise Whisenant, Education Coordinator
MCE Writing Group
Richard Crow
Kerri Lewis
Marty Kramer
Sharon Teusink
Byron Underwood
Ron Walker
Denise Whisenant
Avis Wukasch
Texas Real Estate Commission
Avis Wukasch, Chair
Bill Jones, Vice Chair
Joanne Justice, Secretary
Troy Alley
Adrian Arriaga
Jaime Blevins Hensley
Weston Martinez
Thomas (TJ) Turner
Chart Westcott
Real Estate Center Advisory Committee
Kimberly Shambley, Chairman
C. Clark Welder, Vice Chairman
Mario Arriaga
James Boyd
Russell Cain
Jacquelyn Hawkins
Walter “Ted” Nelson
Stephen “Doug” Roberts
Ronald Wakefield
Bill Jones, ex-officio
Foreword
In cooperation with the Texas Estate Commission, the Real Estate
Center at Texas A&M University developed this real estate broker respon-
sibility curriculum with the assistance of a content writing group using
information from publications, presentations and general research. The
information is believed to be reliable, but it cannot be guaranteed insofar
as it is applied to any particular individual or situation. Laws and rules
discussed in the textbook have been excerpted, summarized or abbrevi-
ated. For a complete understanding and discussion, consult a full version
of any pertinent law. Information in this textbook can change periodically
and is presented with the understanding that the authors and instruc-
tors are not engaged in rendering legal, accounting or other professional
advice. The services of a competent professional with suitable expertise
should be sought.
The authors, presenters, advisory committees, Real Estate Center and
Texas Real Estate Commission disclaim any liability, loss or risk personal
or otherwise, incurred as a consequence, directly or indirectly, from the
use and application of any of the information contained in these materi-
als or the teaching lectures and media presentations given in connection
with these materials.
When using this textbook for the Broker Responsibility course, as
required by the Texas Real Estate Commission, the textbook must be
reproduced and used in its entirety, without omission or alteration.
Contents
Chapter 1: Introduction 1
* Purpose 1
* Who Must Take This Course? 1
* Regulations for Brokers 1
Chapter 2: Scope of Activities and Authorization 3
* Authority and Competency 3
* Recruiting License Holders from Other Brokerages 4
* Employee or Independent Contractor? 4
* Errors and Omissions Policy 5
Chapter 3: Fiduciary Responsibility/Agency 7
* Representation 7
Chapter 4: Trust Funds 11
* A Salesperson Shall Not Maintain a Trust Account 12
Chapter 5: Property Management 13
* Check the Right Box 13
* Leasing Agent Responsibilities 13
* Property Management Responsibilities 13
Chapter 6: Delegated Licensed Supervisor 17
* Relationship Management Tool (Appendix A) 17
* Relationship Management Tool (RMT) Highlights 17
.
This document provides an overview of a commercial real estate ethics training presentation. It discusses:
1) Part 1 defines ethics and discusses how ethics come from one's environment and learned behavior. It also addresses varying degrees of oversight and regulations related to ethics.
2) Part 2 reviews regulations from the Department of Labor Licensing and Regulations (DLLR) and the National Association of Realtors Code of Ethics. It discusses how to file an ethics complaint.
3) Part 3 defines predatory lending and flipping, and discusses understanding mortgage fraud through included video links.
This document outlines the class outline for an Oregon law and rule required course (LARRC). The course covers several topics related to Oregon real estate law, including advertising rules, rent control exemptions for affordable housing, rental assistance legislation during the pandemic, rental application screening laws, and federal and state fair housing laws. The class is presented by Matt Sandler from Oregon State Counsel and will help real estate brokers and property managers comply with changing regulations in Oregon.
This document summarizes the historical development of statutory duties to handle insurance claims fairly and provides an overview of unfair claims practices and regulations. It discusses how the National Association of Insurance Commissioners adopted model acts in 1971 and 1990 addressing unfair claims settlement practices. Most states have adopted versions of these acts. The document reviews common requirements for claims handling, including acknowledging claims, responding to inquiries, maintaining files, and timely accepting or denying claims. It notes potential exposure for breaching the implied covenant of good faith and fair dealing.
No two chapter 11 cases are alike and no two chapter 11 cases involving a retail business are alike. There are, nonetheless, certain issues that tend to arise in most retail cases. Among them: the retention of a liquidation firm; lease assumption and rejection; the claim priority of rent during a month that straddles the Petition Date or a rejection date; and consumer deposit issues. This webinar addresses such issues.
Part of the webinar series: CHAPTER 11- INDUSTRY FOCUS 2022
See more at https://www.financialpoise.com/webinars/
1) Real estate brokers help people buy and sell homes and properties by obtaining property listings, determining market prices, and facilitating transactions.
2) Brokers earn commissions from property sales that are typically a percentage of the sale price and split among involved agents.
3) There are no specific qualifications to become a broker, but the field is competitive so brokers look for applicants with strong personalities, communication skills, and attention to detail.
This document discusses ethics in legal advertising according to the South Carolina Rules of Professional Conduct. It provides guidance on topics such as what constitutes misleading advertising, requirements for disclosures around fees and office locations, and limitations on implying specialization or expertise. The document also includes examples of permissible and impermissible language for describing practice areas and presents an ethics quiz to help apply the rules.
Other Financial Services-Leasing and Hire Purchase; Debt Securitization; Hous...Ashish Hande
This document discusses leasing and related financial concepts. It begins by defining leasing as an agreement between two parties, a leasing company and user, for the temporary possession and use of an asset for a specified period in exchange for rental payments. It then covers essential elements of leasing agreements, types of leasing, steps in leasing transactions, advantages and limitations of leasing, contents of lease agreements, and the structure of the leasing industry in India.
This document provides information and standard terms for a Contract of Purchase and Sale for real estate. It begins with copyright information for the form.
Section 1 provides 3 sentences on recommended procedures for completing the sale to ensure the seller receives funds on the agreed upon completion date. It advises the buyer to pay funds and sign documents at least 2 days before completion, and the seller to return signed documents by the morning before completion.
Section 2 notes the real estate brokerage must hold deposits from the transaction as a stakeholder according to the Real Estate Services Act, and cannot release the funds without written agreement from both parties.
The document summarizes SEC and FINRA enforcement actions against broker-dealers and investment advisers in 2014. Some key points:
- The SEC brought a record 755 enforcement actions in 2014, up from 686 in 2013, collecting $4.16 billion in penalties and disgorgement. FINRA also took a more aggressive enforcement approach.
- Regulators increasingly rely on data and analytical tools to identify misconduct like churning, mutual fund switching, and lack of suitability. Both regulators and firms find regulators now have better data capabilities.
- Enforcement actions addressed issues like anti-money laundering compliance failures, providing inaccurate "blue sheet" trading information to regulators, misleading clients about performance or fees
340 Brightonlake Rd, Beautiful New Listing In Brighton Michigantommygill7
This document is a receipt and agreement for an earnest money deposit related to a real estate transaction. It details the amounts and forms of deposits provided, including an original deposit of $5,000 in the form of a personal check. It acknowledges the buyer's agreement that any fees for non-sufficient funds will be deducted from their deposit refund or included in closing documents. It also serves to notify the buyer that their deposit must be immediately delivered to the broker's non-interest bearing trust account according to state law.
The document provides information about online training for landlords in Wales to become licensed under the Rent Smart Wales scheme. It outlines that the training is divided into 5 sections that cover topics relevant to managing rental properties legally. Learners can progress through modules at their own pace and there is a certificate awarded upon passing an assessment at the end of the course.
Best Practices Regarding Technology (Series: Legal Ethics - Best Practices)Financial Poise
Technology is rapidly changing the way lawyers provide services. This is so especially in light of the Covid-19 pandemic, which creates new and different ethical challenges to confidentiality, cyber fraud and securing data, marketing and advertising concerns, and client communications. This webinar will address a myriad of new problems lawyers are facing and some practical suggestions and solutions that arise out of the changing manner and pace of the practice of law. This webinar will also cover several ABA Model Rules of Professional Conduct.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/best-practices-regarding-technology-2021/
Insider Lease Agreements (Series: Ethical Issues in Real Estate-Based Bankrup...Financial Poise
It is a common play in real estate to create a separate operating entity to serve as a tenant and execute a lease between the owner of the property and himself. Typically, this happens in assets which serve as a real estate-based business, such as a retail property. The structure enables the operator to reduce the taxable income of the business and also provide a liability shield for the property owner. This arrangement can lead to some ethical issues should the property owner become distressed. For example, is the lease amount above market and therefore being used to inflate the property valuation? Is rent actually being paid? Is there a proper lease in place or just an internal handshake? Attorneys need to understand the set-up in order to know what is in bounds and what is outside the lines. This webinar looks at this leasing structure and examines the issues that may arise.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/insider-lease-agreements-2020/
Regulation 3 of the Consumer Protection Act (CPA) Regulations outlines the mandatory pre-sale disclosure obligations for franchisors in South Africa. The franchisor must provide a disclosure document to prospective franchisees at least 14 days before signing an agreement. This document must include financial information, projections, and a certificate confirming the franchisor is a going concern. The disclosure obligations must be updated annually. Franchisors also have a duty to continually update information on existing franchisees. While there are no registration requirements for franchise systems, membership in the Franchise Association of South Africa is commercially advisable as it promotes ethical franchising practices.
On June 12, 2012, VAR hosted a live webinar to walk members through the 2012 changes to VA real estate agency law. This is the presentation we used. For the full story on the 2012 changes, check out http://www.VARealtor.com/Agency to access articles, videos, and more.
Christopher D. H, a Midvale man, pleaded guilty in federal court to falsifying documents as part of a mortgage fraud scheme. Specifically, he admitted to falsifying documents to artificially inflate home prices. Mortgage fraud involving inflated home values and falsified documents was an ongoing issue. Regulators were working to address mortgage fraud through increased prosecution and new laws targeting fraudulent practices.
This document authorizes a realtor to show an unlisted property to prospective buyers. It does not create an agency relationship between the realtor and property owner. The owner agrees to pay the realtor a commission if the owner enters into a contract to sell the property to the prospective buyers by a specified date. The document outlines the realtor's duties to the buyers, such as presenting all offers and disclosing defects, as well as limitations on agency relationships.
This document provides guidance on successful real estate settlements. It discusses utilizing checklists and timelines to track transactions. It emphasizes providing service beyond basic requirements. Sections cover listing properties, evaluating sellers' positions, contract reviews, buyer and seller services, home inspections, working with appraisers, troubleshooting issues, and conducting settlements. The document stresses proper contract writing, clear communication between all parties, and addressing potential challenges that may arise.
A PRACTICAL GUIDE TO THE FAR MANDATORY DISCLOSURE RULE FAR 52.203-13dbolton007
This document provides an agenda and summary for a presentation on the FAR Mandatory Disclosure Rule FAR 52.203-13. Key points include:
1) The rule was created in response to low voluntary disclosure rates and high procurement fraud for the Department of Justice. It aims to increase mandatory reporting of violations.
2) The rule has three parts: requirements for disclosure, grounds for suspension/debarment, and a contractor code of business ethics. It requires disclosure of violations dating back to final payment on contracts.
3) Contractors must disclose credible evidence of criminal or civil violations to the agency Inspector General and contracting officer within a certain timeframe. The rule defines principals and mandatory disclosure requirements.
Real brokerage services encyclopedia.pptx3reddvise
Real estate brokers help people buy and sell homes and properties. They obtain property listings, determine market prices, and earn a commission when a property sells. Anyone can become a broker, but the job requires strong communication skills and attention to detail. Brokers' main income comes from commissions on successful sales, which are typically a percentage of the property's value. Proper contracts and tax deductions of commissions are important parts of running a real estate brokerage business.
This document is an advisory for properties being sold by lenders after foreclosure. It summarizes exemptions and requirements for the seller. The seller is exempt from providing certain disclosures but is still required to disclose known material facts affecting the property's value. The seller must also disclose information about earthquake zones, smoke detectors, water heaters, and lead paint. The sale is not exempt from state requirements for carbon monoxide devices or tax withholding obligations. Brokers still have obligations to conduct inspections and provide agency disclosures.
The document discusses licensing requirements for real estate professionals in Texas. It outlines the license types of real estate broker and salesperson and the education requirements to obtain each license. It also discusses exemptions, continuing education obligations, inspector licensing, grounds for license suspension or revocation, the real estate recovery fund, broker affiliations, independent contractor status, the REALTOR designation and code of ethics, the Texas Association of REALTORS, and key terms. The overall purpose is to provide an overview of Texas real estate licensing laws and professional designations.
This document discusses various aspects of real estate agency relationships and duties. It covers topics like dual agency, limited representation, disclosure requirements, and termination of agency. It also warns of potential issues with dual agency like conflicts of interest that could lead to legal claims from clients. Overall, the document provides an overview of important legal and ethical considerations regarding agency in real estate transactions.
The document provides an overview of the conveyancing process for transferring home ownership. It involves multiple stages, including instructing a lawyer, preparing and reviewing contract documents, conducting searches and surveys, raising enquiries, reviewing the title and mortgage, exchanging contracts, and completing the transaction. The conveyancing lawyer ensures the process proceeds smoothly and addresses any legal issues that may arise.
This document is an authority form appointing an agent to manage a residential property. It provides details of the property at 16 Ferny Way Ferny Hills Ashgrove NSW 4321, contact details for the client and agent, authorization for the agent's services including leasing the property and collecting rent, rental details, bond amount, fees schedule, service schedule outlining the agent's duties, and acknowledgments and definitions. The client authorizes the agent to lease the property and manage repairs and maintenance for an exclusive leasing period and continuing period.
This document discusses ethics in legal advertising according to the South Carolina Rules of Professional Conduct. It provides guidance on topics such as what constitutes misleading advertising, requirements for disclosures around fees and office locations, and limitations on implying specialization or expertise. The document also includes examples of permissible and impermissible language for describing practice areas and presents an ethics quiz to help apply the rules.
Other Financial Services-Leasing and Hire Purchase; Debt Securitization; Hous...Ashish Hande
This document discusses leasing and related financial concepts. It begins by defining leasing as an agreement between two parties, a leasing company and user, for the temporary possession and use of an asset for a specified period in exchange for rental payments. It then covers essential elements of leasing agreements, types of leasing, steps in leasing transactions, advantages and limitations of leasing, contents of lease agreements, and the structure of the leasing industry in India.
This document provides information and standard terms for a Contract of Purchase and Sale for real estate. It begins with copyright information for the form.
Section 1 provides 3 sentences on recommended procedures for completing the sale to ensure the seller receives funds on the agreed upon completion date. It advises the buyer to pay funds and sign documents at least 2 days before completion, and the seller to return signed documents by the morning before completion.
Section 2 notes the real estate brokerage must hold deposits from the transaction as a stakeholder according to the Real Estate Services Act, and cannot release the funds without written agreement from both parties.
The document summarizes SEC and FINRA enforcement actions against broker-dealers and investment advisers in 2014. Some key points:
- The SEC brought a record 755 enforcement actions in 2014, up from 686 in 2013, collecting $4.16 billion in penalties and disgorgement. FINRA also took a more aggressive enforcement approach.
- Regulators increasingly rely on data and analytical tools to identify misconduct like churning, mutual fund switching, and lack of suitability. Both regulators and firms find regulators now have better data capabilities.
- Enforcement actions addressed issues like anti-money laundering compliance failures, providing inaccurate "blue sheet" trading information to regulators, misleading clients about performance or fees
340 Brightonlake Rd, Beautiful New Listing In Brighton Michigantommygill7
This document is a receipt and agreement for an earnest money deposit related to a real estate transaction. It details the amounts and forms of deposits provided, including an original deposit of $5,000 in the form of a personal check. It acknowledges the buyer's agreement that any fees for non-sufficient funds will be deducted from their deposit refund or included in closing documents. It also serves to notify the buyer that their deposit must be immediately delivered to the broker's non-interest bearing trust account according to state law.
The document provides information about online training for landlords in Wales to become licensed under the Rent Smart Wales scheme. It outlines that the training is divided into 5 sections that cover topics relevant to managing rental properties legally. Learners can progress through modules at their own pace and there is a certificate awarded upon passing an assessment at the end of the course.
Best Practices Regarding Technology (Series: Legal Ethics - Best Practices)Financial Poise
Technology is rapidly changing the way lawyers provide services. This is so especially in light of the Covid-19 pandemic, which creates new and different ethical challenges to confidentiality, cyber fraud and securing data, marketing and advertising concerns, and client communications. This webinar will address a myriad of new problems lawyers are facing and some practical suggestions and solutions that arise out of the changing manner and pace of the practice of law. This webinar will also cover several ABA Model Rules of Professional Conduct.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/best-practices-regarding-technology-2021/
Insider Lease Agreements (Series: Ethical Issues in Real Estate-Based Bankrup...Financial Poise
It is a common play in real estate to create a separate operating entity to serve as a tenant and execute a lease between the owner of the property and himself. Typically, this happens in assets which serve as a real estate-based business, such as a retail property. The structure enables the operator to reduce the taxable income of the business and also provide a liability shield for the property owner. This arrangement can lead to some ethical issues should the property owner become distressed. For example, is the lease amount above market and therefore being used to inflate the property valuation? Is rent actually being paid? Is there a proper lease in place or just an internal handshake? Attorneys need to understand the set-up in order to know what is in bounds and what is outside the lines. This webinar looks at this leasing structure and examines the issues that may arise.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/insider-lease-agreements-2020/
Regulation 3 of the Consumer Protection Act (CPA) Regulations outlines the mandatory pre-sale disclosure obligations for franchisors in South Africa. The franchisor must provide a disclosure document to prospective franchisees at least 14 days before signing an agreement. This document must include financial information, projections, and a certificate confirming the franchisor is a going concern. The disclosure obligations must be updated annually. Franchisors also have a duty to continually update information on existing franchisees. While there are no registration requirements for franchise systems, membership in the Franchise Association of South Africa is commercially advisable as it promotes ethical franchising practices.
On June 12, 2012, VAR hosted a live webinar to walk members through the 2012 changes to VA real estate agency law. This is the presentation we used. For the full story on the 2012 changes, check out http://www.VARealtor.com/Agency to access articles, videos, and more.
Christopher D. H, a Midvale man, pleaded guilty in federal court to falsifying documents as part of a mortgage fraud scheme. Specifically, he admitted to falsifying documents to artificially inflate home prices. Mortgage fraud involving inflated home values and falsified documents was an ongoing issue. Regulators were working to address mortgage fraud through increased prosecution and new laws targeting fraudulent practices.
This document authorizes a realtor to show an unlisted property to prospective buyers. It does not create an agency relationship between the realtor and property owner. The owner agrees to pay the realtor a commission if the owner enters into a contract to sell the property to the prospective buyers by a specified date. The document outlines the realtor's duties to the buyers, such as presenting all offers and disclosing defects, as well as limitations on agency relationships.
This document provides guidance on successful real estate settlements. It discusses utilizing checklists and timelines to track transactions. It emphasizes providing service beyond basic requirements. Sections cover listing properties, evaluating sellers' positions, contract reviews, buyer and seller services, home inspections, working with appraisers, troubleshooting issues, and conducting settlements. The document stresses proper contract writing, clear communication between all parties, and addressing potential challenges that may arise.
A PRACTICAL GUIDE TO THE FAR MANDATORY DISCLOSURE RULE FAR 52.203-13dbolton007
This document provides an agenda and summary for a presentation on the FAR Mandatory Disclosure Rule FAR 52.203-13. Key points include:
1) The rule was created in response to low voluntary disclosure rates and high procurement fraud for the Department of Justice. It aims to increase mandatory reporting of violations.
2) The rule has three parts: requirements for disclosure, grounds for suspension/debarment, and a contractor code of business ethics. It requires disclosure of violations dating back to final payment on contracts.
3) Contractors must disclose credible evidence of criminal or civil violations to the agency Inspector General and contracting officer within a certain timeframe. The rule defines principals and mandatory disclosure requirements.
Real brokerage services encyclopedia.pptx3reddvise
Real estate brokers help people buy and sell homes and properties. They obtain property listings, determine market prices, and earn a commission when a property sells. Anyone can become a broker, but the job requires strong communication skills and attention to detail. Brokers' main income comes from commissions on successful sales, which are typically a percentage of the property's value. Proper contracts and tax deductions of commissions are important parts of running a real estate brokerage business.
This document is an advisory for properties being sold by lenders after foreclosure. It summarizes exemptions and requirements for the seller. The seller is exempt from providing certain disclosures but is still required to disclose known material facts affecting the property's value. The seller must also disclose information about earthquake zones, smoke detectors, water heaters, and lead paint. The sale is not exempt from state requirements for carbon monoxide devices or tax withholding obligations. Brokers still have obligations to conduct inspections and provide agency disclosures.
The document discusses licensing requirements for real estate professionals in Texas. It outlines the license types of real estate broker and salesperson and the education requirements to obtain each license. It also discusses exemptions, continuing education obligations, inspector licensing, grounds for license suspension or revocation, the real estate recovery fund, broker affiliations, independent contractor status, the REALTOR designation and code of ethics, the Texas Association of REALTORS, and key terms. The overall purpose is to provide an overview of Texas real estate licensing laws and professional designations.
This document discusses various aspects of real estate agency relationships and duties. It covers topics like dual agency, limited representation, disclosure requirements, and termination of agency. It also warns of potential issues with dual agency like conflicts of interest that could lead to legal claims from clients. Overall, the document provides an overview of important legal and ethical considerations regarding agency in real estate transactions.
The document provides an overview of the conveyancing process for transferring home ownership. It involves multiple stages, including instructing a lawyer, preparing and reviewing contract documents, conducting searches and surveys, raising enquiries, reviewing the title and mortgage, exchanging contracts, and completing the transaction. The conveyancing lawyer ensures the process proceeds smoothly and addresses any legal issues that may arise.
This document is an authority form appointing an agent to manage a residential property. It provides details of the property at 16 Ferny Way Ferny Hills Ashgrove NSW 4321, contact details for the client and agent, authorization for the agent's services including leasing the property and collecting rent, rental details, bond amount, fees schedule, service schedule outlining the agent's duties, and acknowledgments and definitions. The client authorizes the agent to lease the property and manage repairs and maintenance for an exclusive leasing period and continuing period.
Similar to resnRisk Reduction.pptxRisk Reduction.pptx (20)
The document discusses methods of determining property value, including the market data approach using comparable sales, the cost approach involving replacement cost and depreciation, and the income approach using net operating income and capitalization rates. It provides details on key valuation concepts like highest and best use, supply and demand, and methods like paired sales analysis. Appraisers consider factors like demand, utility, scarcity, and transferability when assessing a property's value.
The document discusses various topics related to real estate ownership and leasing, including:
- Forms of ownership such as sole ownership, joint tenancy, tenancy by the entirety, and ownership by corporations or partnerships.
- Freehold estates like fee simple and life estates.
- Types of leases for real estate like estates for years, periodic tenancies, and estates at will or sufferance.
- Issues addressed in lease agreements and different payment structures for commercial leases.
- Rights and responsibilities regarding leasehold improvements, trade fixtures, and lease options.
- The document outlines various policies regarding registering for and attending real estate classes, including a 10 minute grace period for entering late, a 10 minute cancellation window, and dress code requirements. It notes that registering for both morning and evening classes on the same day is not allowed and both seats will be canceled if no contact is made. It also states that missing more than 2 days of class will result in the rest of your seats being canceled.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
resnRisk Reduction.pptxRisk Reduction.pptx
1. “RISK REDUCTION IN REAL ESTATE”
3-HR Risk Reduction Continuing Education
CE.XXXXXX-RE
Approved by the Nevada Real Estate Division on behalf of the Commission.
1
2. OVERVIEW
OBJECTIVE
This 3-hour course was designed to familiarize the licensee with an overall understanding of the concept of
Risk Reduction and to introduce several components of a sound risk reduction plan. This course satisfies
the 3-hour risk reduction CE requirement.
INTRODUCTION
• “Risk Reduction” or “Risk Management” “Reduce the risk of what?”
• Proactive measures to reduce our risk of:
• Litigation
• Formal complaints
• Disciplinary action
• Fines
2
3. OVERVIEW
• Take a proactive approach to learn how to recognize risk in your business
• By having risk reduction systems in place, we can lessen the chances of negative events
• What kind of systems?
1. On-Going Education
2. Awareness of/Compliance with State and Federal Laws
3. Knowledge of/Compliance with Disclosure Liabilities
4. Errors and Omissions Insurance
5. Transaction Management
6. Policies and Procedures
• These 6 components comprise your risk reduction plan
3
4. OVERVIEW
• Though risk reduction is of primary concern to brokers, it should also be for salespeople
• Hiscox survey: 20% of real estate agents reported lawsuit filed against them
• High-ticket merchandise with a lot of emotion attached
• Biggest investment that most people will ever make
• Stakes can be high for real estate agents if a transaction doesn’t go well
• Trusted advisors: if we give advice that causes financial harm we could be sued
• Sellers feel they sold too low
• Buyers feel they paid too much
• Guess who gets the blame?
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5. COMPONENT 1: ON-GOING EDUCATION
• ON-GOING EDUCATION
• After licensed for a few years, many of us might complain about attending
required training
• Dull courses
• Bad instructors
• Boring lectures
• But we have an obligation to the public to stay current and stay finely tuned
• Why did the Nevada State Legislature raise the education requirements for pre-licensing and continuing
education courses?
• Would you take courses if it weren’t legally mandated?
5
6. COMPONENT 1: ON-GOING EDUCATION
• As brokers, we have a legal obligation to train and supervise our agents.
• Regularly scheduled sales meetings
• Educational opportunities
• Outlines and attendances records should be maintained
• Follow up with agents who “never show up”
• If suit is filed against a licensee and broker can show education on topic,
broker’s liability may be lessened
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7. COMPONENT 1: ON-GOING EDUCATION
NAC 645.600 Responsibilities of broker regarding associated licensees, employees and operation of
business; agreement to retain licensee as independent contractor. (NRS 645.050, 645.190)
1. Every real estate broker shall teach the licensees associated with him or her the fundamentals of real
estate or time-share practice, or both, and the ethics of the profession. The broker shall supervise the activities of
those licensees, the activities of his or her employees and the operation of his or her business.
2. The supervision described in subsection 1 includes, without limitation, the establishment of policies, rules,
procedures and systems that allow the real estate broker to review, oversee and manage:
(a) The real estate transactions performed by a licensee who is associated with the real estate broker;
(b) Documents that may have a material effect upon the rights or obligations of a party to such a real estate
transaction;
(c) The filing, storage and maintenance of such documents;
(d) The handling of money received on behalf of a real estate broker;
(e) The advertising of any service for which a real estate license is required; and
(f) The familiarization by the licensee of the requirements of federal and state law governing real estate
transactions, including, without limitation, prohibitions against discrimination.
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8. COMPONENT 1: ON-GOING EDUCATION
3. In establishing such policies, rules, procedures and systems, the real estate broker shall consider the
number of licensees associated with the real estate broker, the number of employees employed by the real estate
broker and the number and location of branch offices operated by the real estate broker.
4. A real estate broker shall establish a system for monitoring compliance with such policies, rules,
procedures and systems. The real estate broker may use a real estate broker-salesperson to assist in
administering the provisions of this section so long as the real estate broker does not relinquish overall
responsibility for the supervision of the acts of the licensees associated with the real estate broker.
5. A real estate broker may enter into a written agreement with each licensee associated with the real estate
broker to retain the licensee as an independent contractor. If such an agreement is entered into, it must:
(a) Be signed and dated by the real estate broker and the licensee; and
(b) Include the material aspects of the relationship between the real estate broker and the licensee, including,
without limitation, the supervision by the real estate broker of the activities of the licensee for which a real estate
license is required.
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9. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
• AWARENESS OF AND COMPLIANCE WITH STATE AND FEDERAL LAWS
• Crucial to understand how laws and regulations apply to your business
• Stay up to date on legal change
• Division requires continuing education on Nevada law and legislative update
• No excuse to not be on top of new laws and regulations
• Nevada State Laws
• Collection of what we feel to be the most important laws in Nevada:
NRS 645.252 Duties of licensee acting as agent in real estate transaction. A licensee who acts as an
agent in a real estate transaction:
1. Shall disclose to each party to the real estate transaction as soon as is practicable:
(a) Any material and relevant facts, data or information which the licensee knows, or which by the exercise of
reasonable care and diligence should have known, relating to the property which is the subject of the transaction.
(b) Each source from which the licensee will receive compensation as a result of the transaction.
(c) That the licensee is a principal to the transaction or has an interest in a principal to the transaction.
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10. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
(d) Except as otherwise provided in NRS 645.253, that the licensee is acting for more than one party to the
transaction. If a licensee makes such a disclosure, he or she must obtain the written consent of each party to the
transaction for whom the licensee is acting before he or she may continue to act in his or her capacity as an
agent. The written consent must include:
(1) A description of the real estate transaction.
(2) A statement that the licensee is acting for two or more parties to the transaction who have adverse
interests and that in acting for these parties, the licensee has a conflict of interest.
(3) A statement that the licensee will not disclose any confidential information for 1 year after the
revocation or termination of any brokerage agreement entered into with a party to the transaction, unless he or
she is required to do so by a court of competent jurisdiction or is given written permission to do so by that party.
(4) A statement that a party is not required to consent to the licensee acting on behalf of the party.
(5) A statement that the party is giving consent without coercion and understands the terms of the
consent given.
(e) Any changes in the licensee’s relationship to a party to the transaction.
2. Shall exercise reasonable skill and care with respect to all parties to the real estate transaction.
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11. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
3. Shall provide the appropriate form prepared by the Division pursuant to NRS 645.193 to:
(a) Each party for whom the licensee is acting as an agent in the real estate transaction; and
(b) Each unrepresented party to the real estate transaction, if any.
4. Unless otherwise agreed upon in writing, owes no duty to:
(a) Independently verify the accuracy of a statement made by an inspector certified pursuant to chapter
645D of NRS or another appropriate licensed or certified expert.
(b) Conduct an independent inspection of the financial condition of a party to the real estate transaction.
(c) Conduct an investigation of the condition of the property which is the subject of the real estate transaction.
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12. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
NRS 645.253 Licensees affiliated with same brokerage: Additional duties when assigned to
separate parties to real estate transaction. If a real estate broker assigns different licensees affiliated with
his or her brokerage to separate parties to a real estate transaction, the licensees are not required to obtain
the written consent required pursuant to paragraph (d) of subsection 1 of NRS 645.252. Each licensee shall
not disclose, except to the real estate broker, confidential information relating to a client in violation of NRS
645.254.
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13. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
NRS 645.254 Additional duties of licensee entering into brokerage agreement to represent client in
real estate transaction. A licensee who has entered into a brokerage agreement to represent a client in a real
estate transaction:
1. Shall exercise reasonable skill and care to carry out the terms of the brokerage agreement and to carry
out his or her duties pursuant to the terms of the brokerage agreement;
2. Shall not disclose confidential information relating to a client for 1 year after the revocation or termination
of the brokerage agreement, unless he or she is required to do so pursuant to an order of a court of competent
jurisdiction or is given written permission to do so by the client;
3. Shall seek a sale, purchase, option, rental or lease of real property at the price and terms stated in the
brokerage agreement or at a price acceptable to the client;
4. Shall present all offers made to or by the client as soon as is practicable, unless the client chooses to
waive the duty of the licensee to present all offers and signs a waiver of the duty on a form prescribed by the
Division;
5. Shall disclose to the client material facts of which the licensee has knowledge concerning the transaction;
6. Shall advise the client to obtain advice from an expert relating to matters which are beyond the expertise
of the licensee; and
7. Shall account for all money and property the licensee receives in which the client may have an interest as
soon as is practicable.
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14. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
NRS 645.630 Authorized disciplinary action; grounds for disciplinary action; orders imposing discipline
deemed public records.
1. The Commission may require a licensee, property manager or owner-developer to pay an administrative
fine of not more than $10,000 for each violation he or she commits or suspend, revoke, deny the renewal of or
place conditions upon his or her license, permit or registration, or impose any combination of those actions, at
any time if the licensee, property manager or owner-developer has, by false or fraudulent representation,
obtained a license, permit or registration, or the licensee, property manager or owner-developer, whether or not
acting as such, is found guilty of:
(a) Making any material misrepresentation.
(b) Making any false promises of a character likely to influence, persuade or induce.
(c) Accepting a commission or valuable consideration as a real estate broker-salesperson or salesperson for
the performance of any of the acts specified in this chapter or chapter 119 or 119A of NRS from any person
except the licensed real estate broker with whom he or she is associated or the owner-developer by whom he or
she is employed.
(d) Representing or attempting to represent a real estate broker other than the broker with whom he or she is
associated, without the express knowledge and consent of the broker with whom he or she is associated.
(e) Failing to maintain, for review and audit by the Division, each brokerage agreement and property
management agreement governed by the provisions of this chapter and entered into by the licensee.
(f) Failing, within a reasonable time, to account for or to remit any money which comes into his or her
possession and which belongs to others.
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15. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
(g) If he or she is required to maintain a trust account:
(1) Failing to balance the trust account at least monthly; and
(2) Failing to submit to the Division an annual accounting of the trust account as required in NRS
645.310.
(h) Commingling the money or other property of his or her clients with his or her own or converting the money
of others to his or her own use.
(i) In the case of a broker-salesperson or salesperson, failing to place in the custody of his or her licensed
broker or owner-developer, as soon as possible, any deposit or other money or consideration entrusted to him or
her by any person dealing with him or her as the representative of his or her licensed broker.
(j) Accepting other than cash as earnest money unless that fact is communicated to the owner before his or
her acceptance of the offer to purchase and that fact is shown in the receipt for the earnest money.
(k) Upon acceptance of an agreement, in the case of a broker, failing to deposit any check or cash received
as earnest money before the end of the next banking day unless otherwise provided in the purchase agreement.
(l) Inducing any party to a brokerage agreement, property management agreement, agreement of sale or
lease to break it in order to substitute a new brokerage agreement, property management agreement, agreement
of sale or lease with the same or another party if the inducement to make the substitution is offered to secure
personal gain to the licensee or owner-developer.
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16. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
NRS 645.633 Additional grounds for disciplinary action: Improper trade practices; violations of certain
orders, agreements, laws and regulations; criminal offenses; other unprofessional and improper
conduct; reciprocal discipline; violations relating to property management; log of complaints.
1. The Commission may take action pursuant to NRS 645.630 against any person subject to that section
who is guilty of any of the following acts:
(a) Willfully using any trade name, service mark or insigne of membership in any real estate organization of
which the licensee is not a member, without the legal right to do so.
(b) Violating any order of the Commission, any agreement with the Division, any of the provisions of this
chapter, chapter 116, 119, 119A, 119B, 645A or 645C of NRS or any regulation adopted pursuant thereto.
(c) Paying a commission, compensation or a finder’s fee to any person for performing the services of a
broker, broker-salesperson or salesperson who has not secured a license pursuant to this chapter. This
subsection does not apply to payments to a broker who is licensed in his or her state of residence.
(d) A conviction of, or the entry of a plea of guilty, guilty but mentally ill or nolo contendere to:
(1) A felony relating to the practice of the licensee, property manager or owner-developer; or
(2) Any crime involving fraud, deceit, misrepresentation or moral turpitude.
(e) Guaranteeing, or having authorized or permitted any person to guarantee, future profits which may result
from the resale of real property.
(f) Failure to include a fixed date of expiration in any written brokerage agreement or failure to leave a copy of
such a brokerage agreement or any property management agreement with the client.
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17. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
(g) Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made
for a client.
(h) Gross negligence or incompetence in performing any act for which the person is required to hold a license
pursuant to this chapter, chapter 119, 119A or 119B of NRS.
(i) Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.
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18. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
NRS 645.635 Additional grounds for disciplinary action: Unprofessional and improper conduct relating
to real estate transactions. The Commission may take action pursuant to NRS 645.630 against any person
subject to that section who is guilty of:
1. Offering real estate for sale or lease without the knowledge and consent of the owner or the owner’s
authorized agent or on terms other than those authorized by the owner or the owner’s authorized agent.
2. Negotiating a sale, exchange or lease of real estate, or communicating after such negotiations but before
closing, directly with a client if the person knows that the client has a brokerage agreement in force in connection
with the property granting an exclusive agency, including, without limitation, an exclusive right to sell to another
broker, unless permission in writing has been obtained from the other broker.
3. Failure to deliver within a reasonable time a completed copy of any purchase agreement or offer to buy or
sell real estate to the purchaser or to the seller, except as otherwise provided in subsection 4 of NRS 645.254.
4. Failure to deliver to the seller in each real estate transaction, within 10 business days after the transaction
is closed, a complete, detailed closing statement showing all of the receipts and disbursements handled by him or
her for the seller, failure to deliver to the buyer a complete statement showing all money received in the
transaction from the buyer and how and for what it was disbursed, or failure to retain true copies of those
statements in his or her files. The furnishing of those statements by an escrow holder relieves the broker’s,
broker-salesperson’s or salesperson’s responsibility and must be deemed to be in compliance with this provision.
5. Representing to any lender, guaranteeing agency or any other interested party, verbally or through the
preparation of false documents, an amount in excess of the actual sale price of the real estate or terms differing
from those actually agreed upon.
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19. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
6. Failure to produce any document, book or record in his or her possession or under his or her control,
concerning any real estate transaction under investigation by the Division.
7. Failure to reduce a bona fide offer to writing where a proposed purchaser requests that it be submitted in
writing, except as otherwise provided in subsection 4 of NRS 645.254.
8. Failure to submit all written bona fide offers to a seller when the offers are received before the seller
accepts an offer in writing and until the broker has knowledge of that acceptance, except as otherwise provided in
subsection 4 of NRS 645.254.
9. Refusing because of race, color, national origin, sex, sexual orientation, gender identity or expression, or
ethnic group to show, sell or rent any real estate for sale or rent to qualified purchasers or renters.
10. Knowingly submitting any false or fraudulent appraisal to any financial institution or other interested
person.
11. Any violation of NRS 645C.557.
unknown to the Division and which would have been grounds for denial of a license had the Division been aware
of the conduct.
(k) Knowingly permitting any person whose license has been revoked or suspended to act as a real estate
broker, broker-salesperson or salesperson, with or on behalf of the licensee.
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20. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
• Federal Laws
• Real estate licensees must adhere to the following federal laws, among others:
• Civil Rights Act of 1866
• Fair Housing Act of 1968
• Americans with Disabilities Act
• Consumer Credit Protection Act, Truth-In-Lending Act, Regulation “Z”
• Equal Credit Opportunity Act (ECOA)
• Real Estate Settlement Procedures Act (RESPA)
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21. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
• The Civil Rights Act of 1866 provided that all persons born in the United States are declared to be
citizens, regardless of race or color, and shall have the right to enter into contracts, to sue, inherit, acquire
and dispose of property, and shall equally benefit from the law as do white citizens. Classes protected by
this law were race and color.
• The Fair Housing Act of 1968 protected four classes or classifications of Americans. Race and color
from 1866 and in 1968 covered religion and national origin. Gender was added in 1974 and family status
and disability were added in 1988.
• The Americans with Disabilities Act primarily deals with physical workplace accommodations for
disabled persons. While the ADA is not usually related to housing units and properties, real estate agents
are advised to have some knowledge of the law and its requirements especially if dealing with landlords
and tenants.
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22. COMPONENT 2: AWARENESS OF AND COMPLIANCE WITH LAWS
• The Consumer Credit Protection Act, Truth-In-Lending Act, and Regulation “Z” combined efforts to
prevent the potential for the abuse of a borrower by a lender, together with actual abuses which were
occurring in the market. The principal purpose of these laws is to provide the consumer with complete
and understandable credit information so the consumer can make informed credit decisions. The
disclosures and components required by these laws are:
• Finance charges
• Annual Percentage Rate
• Advertising Restrictions
• Three (3) business day right of rescission (on some loans)
• The Equal Credit Opportunity Act provides equal access to financing needed and prohibits
discrimination in lending based upon certain protected classes.
• The Real Estate Settlement Procedures Act’s primary purpose is to inform the parties to a covered real
estate transaction what the closing costs and charges are, and which costs they pay for. The primary
motive behind RESPA is to expose any kickbacks which may be occurring.
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23. COMPONENT 3: KNOWLEDGE OF AND COMPLIANCE WITH DISCLOSURES
• KNOWLEDGE OF AND COMPLIANCE WITH DISCLOSURE LIABILITIES
• Failure to disclose a material fact or the omission of important information can be a cause of
disciplinary action.
• In Nevada, we have a plethora of disclosures with which to contend. Consider:
• Duties Owed
• Consent to Act
• Residential Disclosure Guide
• Confirmation of Agency
• Seller’s Real Property Disclosure
• Common-interest Communities Information
Statement “Did You Know”
• Gaming Disclosure
• Used Manufactured/Mobile Home/Parks
• Construction Defects
• Open Range disclosure
• Building and Zoning codes
• Environmental Hazards
23
• Airport Noise
• Gaming district
• Real Estate Settlement Procedures Act
(RESPA)
• Truth-in-Lending Act (TILA)
• Lead-based Paint Hazards booklet and
form
• For Your Protection Get a Home Inspection
• Before You Purchase in a Common
Interest Community… Did You Know?
24. COMPONENT 3: KNOWLEDGE OF AND COMPLIANCE WITH DISCLOSURES
24
NRS 645.252 Duties of licensee acting as agent in real estate transaction. A licensee who
acts as an agent in a real estate transaction:
1. Shall disclose to each party to the real estate transaction as soon as is practicable:
(a) Any material and relevant facts, data or information which the licensee knows, or which by
the exercise of reasonable care and diligence should have known, relating to the property which is
the subject of the transaction.
(b) Each source from which the licensee will receive compensation as a result of the
transaction.
(c) That the licensee is a principal to the transaction or has an interest in a principal to the
transaction.
(d) Except as otherwise provided in NRS 645.253, that the licensee is acting for more than one
party to the transaction. If a licensee makes such a disclosure, he or she must obtain the written
consent of each party to the transaction for whom the licensee is acting before he or she may
continue to act in his or her capacity as an agent.
And then there are disclosures that come up which are specific to the transaction.
25. COMPONENT 4: ERRORS AND OMMISSIONS INSURANCE
25
• ERRORS AND OMISSIONS INSURANCE
• (E&O) is a type of professional liability insurance
• Protects brokers and associates against claims made by clients for inadequate work or negligent actions
• Often covers both court costs and any settlements up to a limit
• Some brokers bear the cost of E&O alone, others require licensees to participate
• NAR Video: E&O What You Need to Know
• Covers just what the name says, “errors” and “omissions”
• Does not cover misrepresentation, fraud, fair housing violations, and other deliberate illegal acts
• Medical equivalent is malpractice insurance
26. COMPONENT 4: ERRORS AND OMMISSIONS INSURANCE
26
• Similarly, brokers might require agent auto insurance:
• Cover liabilities resulting from agent’s use of vehicle when conducting real estate activities
• Broker might require to be named insured on policy
• Through both forms of insurance, liability exposure and cost of defense are shifted to corporate insurers willing
to take on financial burden
• Agents entrusted with clients’ financial information, and if stored digitally, consider cyber liability insurance
• Policy can cover expenses related to data breach, including lawsuits, client notifications, and data recovery
27. COMPONENT 4: ERRORS AND OMMISSIONS INSURANCE
27
• General Liability Insurance
• Let’s say client Alice stops by the office to look at broker Sam’s listings and trips over a bunched up rug. She hits her head
on the corner of a desk and has to get some stitches. It turns out Alice has a concussion. The hospital orders a number of
expensive tests to treat the concussion and rule out any additional injury. Alice turns out to be fine, but has racked up
$25,000 in medical bills for her treatment. She sues the real estate agent to pay for her out of pocket medical costs. The
insurance company would attempt to settle out of court first, but defend the agent from the lawsuit if it goes to court. Since
Sam has a $1,000,000 policy, his insurance policy is adequate to cover the medical bills.
• General liability insurance covers:
• Brokerage in the event of a suit for damages
• Pay annual premiums and insurance company will defend, pay up to limit, and settle any covered incidents
• Some of the expenses the insurance policy would cover include:
• Medical expenses
• Legal fees
• Court judgments
• Settlement costs
28. COMPONENT 5: TRANSACTION MANAGEMENT
28
• TRANSACTION MANAGEMENT
• Transactions generate piles of documentation
• Paperwork required in every transaction demands efficient document management, filing and archiving
systems
• One missing document, or unchecked box, could derail a transaction and lead to client damage claims and
lawsuits
• In Nevada, broker is only required to maintain transaction records for five years
• Advisable to keep them longer, especially since we are allowed to do so in electronic format
• If any of the parties has a claim, he/she will still have his/her document copies
• It's much more difficult to plead your case if you have already destroyed your copies.
29. COMPONENT 6: POLICIES AND PROCEDURES
29
• POLICIES AND PROCEDURES
• Must have administrative structure to verify agents are conducting themselves as intended
• Or broker will be exposed to an unnecessary risk of loss
• Continued oversight and policing are put in place
• Oversight requires commitment of resources to report:
• Unacceptable conduct
• Holding of training meetings
• Maintenance of client files
• Continuing management
30. COMPONENT 6: POLICIES AND PROCEDURES
30
• NAC 645.600 states “The broker shall supervise the activities of those licensees, the activities of his or
her employees, and the operation of his or her business. The supervision described… includes, without
limitation, the establishment of policies, rules, procedures and systems that allow the real estate broker to
review, oversee and manage…”
• Nevada regulations require real estate firms to have company policies/procedures in place
• Brokers who utilize them find their brokerages operate much more smoothly
• Establish the “rules” of the organization and make available in writing
• Brokerage firm must have policies to maintain order and a professional working environment for all
• Must have procedures to define how the daily operations and processes are to be conducted
• Many real estate companies who skip this important step discover themselves managing by word of
mouth and unwritten rules.
• Many individual salespeople find working under this type of leadership inconsistent, unprofessional, and
may become resentful toward the firm’s leadership.
• By having a written document representing the policies and procedures, misunderstandings and
inconsistent decisions are more likely to be avoided as it presumably governs the behaviors of all.
31. COMPONENT 6: POLICIES AND PROCEDURES
31
• In writing the policies and procedures:
• Ownership and management should determine company’s philosophies, standards, ethics, and thus
develop the policies and procedures
• Can turn to reference books and the internet for guidelines in drafting one
• Broker should not just stamp the company logo over the other firm’s manual and use that one
• Should take the time necessary to reflect on policies and procedures that will truly create and
maintain the culture desired in the office
• Legal counsel might also be sought.
• Be sure systems do not violate any laws or become source of litigation
• Assure policies and procedures are legally ironclad
• Broker has a much better defense in demonstrating communication and supervision.
33. COMPONENT 6: POLICIES AND PROCEDURES
33
• CYBER POLICIES AND PROCEDURES
• Brokers may want to include cyber security concerns & best practices in the firm’s policies and
procedures.
• Sensitive Data and Privacy Certificates
• HTTPS (Hypertext Transfer Protocol Secure) is an internet communication protocol that protects the
integrity and confidentiality of data between the user's computer and the site.
• Users expect a secure and private online experience when using a website.
• Consider adopting HTTPS in order to protect users' connections to your website
• The use of encrypted server connections (virtual private networks [VPNs]) when working remotely and
accessing sensitive client information
• HTTPS is secured via Transport Layer Security protocol (TLS), which provides three key layers of
protection:
• Encryption: Encrypt exchanged data to keep it secure from eavesdroppers
• That means that while the user is browsing a website, nobody can "listen" to their conversations,
track their activities across multiple pages, or steal their information.
• Data integrity: Data cannot be modified or corrupted during transfer, intentionally or otherwise,
without being detected.
• Authentication: Proves that your users communicate with the intended website.
34. COMPONENT 6: POLICIES AND PROCEDURES
34
• CYBER SECURITY CONCERNS
• “Hacking”
• “Ransomeware”
• “Cyber attack”
• “Cyber readiness”
• All are terms you know but probably haven’t researched.
• Consider adopting a cyber resiliency plan to mitigate risk of loss of income due to cyber attacks.
• RECENT CASES
• (1) Colonial Pipeline (2021)
• Largest fuel pipeline in the U.S.
• Led to gas shortages throughout the east coast
• Hackers accessed the Virtual Private Network
• Still not sure about the details of the hack
• Ransom note left in control room
• CEO Blount said paying the ransom was the only option
• Paid 4.4 million
35. COMPONENT 6: POLICIES AND PROCEDURES
35
• (2) JBS Beef Plants (2021)
• World’s largest beef plant
• 9 plants shut down after cyberattack
• Ransom demand had come from “a criminal organization likely based in Russia.”
• Both incidents caused American businesses to consider their respective cyber readiness.
• Various vendors make available software to:
• Protect and isolate critical data from ransomware and other sophisticated cyber threats.
• Identify suspicious activity with machine learning to recover data and resume normal operations with
confidence
• Recover known good data and resume normal business operations with confidence
• Vendors also offer free cyber resiliency assessments
• Measures organization’s ability to detect, respond to, recover from cyber threats
• To successfully recover from a cyber attack, it’s critical to have a cyber recovery strategy
36. COMPONENT 6: POLICIES AND PROCEDURES
36
• (3) Valley Health System hospitals (Las Vegas) shut down after a cyber attack
• Universal Health Services, the parent company of Valley Health System
• UHS operates more than 400 hospitals and clinical care facilities across the U.S. and United
Kingdom
• Valley Health System includes Centennial Hills Hospital Medical Center, Desert Springs Hospital
Medical Center, Henderson Hospital, Spring Valley Hospital Medical Center, Summerlin Hospital
Medical Center and Valley Hospital Medical Center
• Attack was launched through malware, software designed to gain unauthorized access and damage
a network
• Medical personnel could not easily see lab results, imaging scans, medication lists and other critical
pieces of information that doctors rely on to make decisions
37. COMPONENT 6: POLICIES AND PROCEDURES
37
• EMAIL BEST PRACTICES
• How to identify phishing attempts
• Enacting office policies prohibiting the opening of suspicious hyperlinks & attachments
• PASSWORD BEST PRACTICES
• Strong passwords
• Avoiding using duplicate passwords across multiple platforms/services/user accounts
• WIFI BEST PRACTICES
• Advising staff and agents against using public WiFi to conduct especially when telecommuting
• FIREWALL BEST PRACTICES
• Keep software up to date
• Encouraging the use of antivirus software
• PREVENT WIRE FRAUD
• PROCEDURES FOR OF A DATA BREACH: proactive response plan
38. CONCLUSION
38
• CONCLUSION
• Risk reduction requires the taking a proactive approach to learn how to recognize risk in your business. By
having risk reduction systems in place, we can lessen the chances of these negative events from occurring.
1. On-Going Education
2. Awareness of/Compliance with State and Federal Laws
3. Knowledge of/Compliance with Disclosure Liabilities
4. Errors and Omissions Insurance
5. Transaction Management
6. Policies and Procedures
• Article: “Ways Real Estate Agents Can Reduce Legal Risk”
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Risk Reduction in Real Estate
CE.XXXXXX-RE
Quiz
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1. Risk Reduction involves taking proactive measures to reduce the risk of:
a. Litigation.
b. Disciplinary action.
c. Fines.
d. All the Above
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2. According to NAC 645.600, every Nevada real estate broker shall:
a. Shall teach the licensees associated with him or her the fundamentals of real estate.
b. Establish policies, rules, procedures, and systems that allow the real estate broker to review,
oversee, and manage.
c. Establish a system for monitoring compliance with policies, rules, procedures and systems.
d. All the Above
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3. A licensee who acts as an agent in a real estate transaction shall disclose to each party
to the real estate transaction as soon as is practicable, all the following EXCEPT:
a. Each source from which the licensee will receive compensation as a result of the transaction.
b. That the licensee is a principal to the transaction or has an interest in a principal to the
transaction.
c. The amount of the licensee’s commission.
d. That the licensee is acting for more than one party to the transaction.
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4. On in-house sale, the broker decides to have Susan represent the seller only and Brian
to represent the buyer only without creating a dual agency scenario. In Nevada, this is
called what type of agency relationship?
a. Multiple representation
b. Single agency
c. Transaction brokerage
d. Assigned agency
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5. Violations of NRS 645 or NAC 645 include any of these sanctions EXCEPT:
a. Suspension of license.
b. $5,000 fine.
c. Revocation of license.
d. Placing conditions on the license such as education requirements.
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6. Brokers must maintain transaction files and trust records for at least:
a. 5 years.
b. 7 years.
c. 10 years.
d. There is no requirement.
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46
7. One disclosure that is required in every residential transaction is the:
a. Consent to Act
b. Duties Owed
c. SRPD
d. Did You Know?
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47
8. Which of the following is NOT a protected class under the Federal Fair Housing
Act?
a. Age
b. Family status
c. Religion
d. National origin
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48
9. A prudent broker would:
a. Conduct regularly scheduled sales meetings
b. Offer continuous educational opportunities
c. Maintain outlines and attendance records
d. All the Above
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10. The type of insurance that protects real estate licensees in the event of
litigation for innocent mistakes in a real estate transaction is:
a. General liability insurance.
b. Errors and omissions insurance.
c. Hazard insurance.
d. None of the Above
50. “RISK REDUCTION IN REAL ESTATE”
3-HR Risk Reduction Continuing Education
CE.XXXXXX-RE
Approved by the Nevada Real Estate Division on behalf of the Commission.
50