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Client: Pennsylvania Association of REALTORS Client Contact: Not Available.
Client contact is no longer with PAR. Type of Service: GRI Project: Rewrite GRI 403 course and exam Project Description: BettsWorks was contacted by PAR’s Education Director to review and revise one of their five required GRI courses – GRI 403, “Managing Risk in Real Estate.” The project requirements included:
• Review and revise learning objectives: addressing content accuracy, clarity, correct format, and necessity.
• Writing or editing content to accurately support the learning objectives. • Reorder content to improve course flow. • Simplify, streamline, and clarify exam items when appropriate to
increase accessibility. • Eliminate content that appear to be based on opinion and not
supportable data. • Correct general errors in punctuation and usage. • Improve basic, grammatical structure. • Provide basic manuscript editing of phrasing and overall style. • Eliminate (whenever possible) or minimize changes in voice or tense. • Eliminate those passages having a “folksy” tone. • Standardize formatting, including headers, subheaders, footers, styles,
pagination, exercises, and appendices. • Format final products such that the Instructor Manual maps with the
Participant Manual. The project deliverables included:
• A Revised Participant Workbook (as MS word & PDF documents) • A Revised Instructor’s Manual (as MS word & PDF documents) • A brief report outlining review results and rationales for revision
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The following are sample pages from PAR’s GRI 403 Instructor
Guide.
Note: The following material is copyright protected by the Pennsylvania Association of REALTORS®.
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Principal and Agent While a licensee functions
as one principal’s agent, he may also function as the agent of other principals.
The principal authorizes an agent to represent his interests above all others in a real estate transaction: this continues to be the basic tenet of the law of agency. The principal may be a seller, landlord, buyer, or a tenant in a real estate transaction.
Broker of Record
The Broker of Record is responsible for his/her licensees' actions and therefore is the fundamental "agent." Thus, licensees function as "agents of an agent."
Vicarious Liability And Imputed Knowledge
Vicarious Liability refers to a legal liability created not because of a person's actions, but because of a relationship between the person held liable and another party's action. A principal is vicariously liable for the conduct of his/her agent. • For example a broker may be held liable for his
salesperson’s actions. Imputed Knowledge is the concept that knowledge held by an agent is attributed to the principal of that agent. • For example, if a buyer’s agent is notified of the seller’s
acceptance of the buyer’s offer, the buyer is bound by the contract even if the buyer had no actual notice of the acceptance.
Vicarious Liability: The Licensee and the Consumer
EXAM ITEM 17
Both licensees and consumers are protected by the law by the limiting of what is sometimes called vicarious liability. • A consumer of real estate services is not liable for
acts of a licensee unless o the licensee is acting pursuant to the expressed
direction of the consumer o or the licensee is acting based upon a consumer’s
representation reasonably relied upon by the licensee.
• A licensee is not liable for acts of a consumer unless
o the consumer is acting at the expressed direction of the licensee,
o or as a result of a representation by the licensee
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The following are sample pages from PAR’s GRI 403 Student
Materials.
Note: The following material is copyright protected by the Pennsylvania Association of REALTORS®.
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• Read the scenario below.
• The following pages itemize the Listing Contract elements for you to review, note, and answer questions regarding.
• Elements simply marked with a bullet point generally require little to no explanation to a Seller.
• Elements marked with a *_________* denote items that may include blanks to be completed.
• Items beginning with a “Q:” are typical areas of concern to a Seller. Respond to these questions in the space that follows each.
• Your instructor may choose to have you complete this alone, with a partner, or as a class.
• You will have approximately _____minutes to complete this activity.
• Be prepared to share your responses and thoughts.
• Later, you may wish to review the suggested answers to this activity located in Appendix A.
Scenario A husband and wife call a local broker to talk to someone about selling their house. These Sellers do are not very informed about the process of listing a house, they just know that most people who sell their homes enlist the help of professionals. You, a Sales Associate, receive the call and schedule two visits—one to inspect the home and a follow up to make the listing presentation. A week later, you are sitting in the Sellers’ living room. You have just finished the listing presentation and are about to ask for the listing. You’ve explained all the things you can do to sell the home quickly and for a good price. You’ve shown them recent area sales statistics and suggested an appropriate asking price. You’ve discussed commission, agency, and your commitment to fair housing.
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. . . The Sellers ask you to walk them through the listing agreement, element by element. Note: Although other such contracts may be in use, for the purposes of illustration PAR’s “Listing Contract: Exclusive Right to Sell Real Estate” is used as the working example in this exercise to illustrate common elements. See Appendix A for the contract.
Itemizing PAR’s Listing Contract
• Name of broker *____*
• Name of licensee *____*
_______________________________________________
____________________________________________
Item #1 • Address of the property subject that will be listed and its
legal description *____*
_______________________________________________
____________________________________________
• Terms of the listing (i.e., beginning, end) *____*
Items #3-10 • Explanation of rights and duties of the broker Q: What should you explain regarding the rights and duties of a broker?
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10 Q: “What if someone damages the property or steals
something during a showing?” _______________________________________________
5 • Commission rate *____* and the conditions that trigger
entitlement to payment of commission *____* (in the case of an exclusive right-to-sell listing, the stated condition might be if a sale or property exchange occurs during the listing period)
Q: “Can we negotiate the commission rate?” _______________________________________________
_______________________________________________
____________________________________________
7D • Carryover clause *____* (
_______________________________________________
____________________________________________
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_______________________________________________
____________________________________________
Q: “What if we sign a listing agreement with someone else
after your listing agreement has expired?” _______________________________________________
_______________________________________________
____________________________________________
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact: Dan Schmidt/Dawn Headke Type of Service: Consulting Project: Instructional Development Team Search Project Description: BettsWorks was contacted by REBAC to locate and evaluate potential instructional developers for one of REBAC’s courses. The project requirements included:
• Create an RFP to REBAC's specifications for a Course Writer • Distribute RFP to numerous venues and networks • Collect RFP responses within timeline (deadline, early 2nd quarter) • Review Proposals: References, writing samples, curriculum vitae, ROI,
solicit and review additional works by candidates, etc. • Based on Review, select Top Three Course Writer Candidates • Submit Top Three to REBAC with a written evaluation of each based on
Review • Submit a recommendation for hire of the Top Three with written
justification • All RFP's received, regardless of status, turned over to REBAC • Interview selected course writer for SME needs and suggestions. • Solicit and research venues and networks for SMEs • Collect SME names • Evaluate SMEs • Forward select SME names for Instructional Development Team to
REBAC The project deliverables included:
• An RFP • Evaluate and recommend potential Instructional Developers • Standardized form to conduct evaluation
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact: Dan Schmidt/Dawn Headke Type of Service: Consulting Project: Instructional Development Team Search Project Description: BettsWorks was contacted by REBAC to locate and evaluate potential instructional developers for one of REBAC’s courses. A second, related project involved additional research and evaluation of those course writer candidates not selected as top three. The project requirements included:
• For REBAC’s future reference and internal use: Brief (not to exceed one page) summary of BettsWorks’ evaluation of those Course Writer Candidates who responded to RFP but were not selected as Top Three.
• Summary to include results of: Reference checks Course sample evaluation Evaluation of additional course works by Course Writer
Candidate • For REBAC’s future reference and internal use: Brief (not to exceed one
half page) summary of BettsWorks’ evaluation of every SME (min. of 5, max. 10) uncovered during course of research but whose name was not forwarded
The sample document on previous page was used for this project.
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact: Dan Schmidt/Dawn Headke Type of Service: Consulting Project: Instructional Revision Team Search Project Description: BettsWorks was contacted by REBAC to locate and evaluate potential instructional developers to revise one of REBAC’s courses. The project requirements included:
• Create an RFP to REBAC’s specifications for a Course Writer • Distribute RFP to numerous venues and networks • Collect RFP responses within expedited timeline • Review Proposals • Check references • Evaluate samples • Evaluate ROI • Seek out and review additional works by Course Writer Candidate • Based on evaluation, select Top Three Course Writer Candidates • Submit Top Three to REBAC with a written evaluation of each based on
Review • Submit a recommendation for hire of the Top Three with written
justification within 45 days of acceptance of this proposal • All RFPs received, regardless of status, turned over to REBAC • Solicit and research venues and networks for SMEs • Collect SME names • Review each SMEs qualifications • Based on evaluation, select appropriate SMEs for Instructional Revision
Team • Submit appropriate SMEs to REBAC (to compliment the SME team
already assembled by REBAC)
The sample document on previous page was used for this project.
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REBAC: Course Writer Review Worksheet Proposal Checklist Candidate: Mary Jane Shoes Technical section Mailing Address: 123 My Street, My Town, My State and Zip Time-cost section Phone Number: 100-234-5678 Curriculum vitae Email Address: mymail@mymail.com 2 course samples Website: Additional list of courses Course Proposal Items: objectives; outline; timing 3 or more references
CURRICULUM VITAE Comments: Degree/Education 1 2 3 4 5 Experience 1 2 3 4 5 Designation(s) 1 2 3 4 5 License(s) 1 2 3 4 5 Affiliation(s) 1 2 3 4 5 Publication(s) 1 2 3 4 5 Achievement(s) 1 2 3 4 5 Current Occupation Overall Comments Regarding References: REFERENCES: name, title, mailing address, phone number, and email address Please Note: the numerical rating below is NOT from the reference but is an overall rating of the reference based on the reference’s qualifications and comments. Reference Name: Highlights of Comments from Reference: #1 1 2 3 4 5 #2 1 2 3 4 5 #3 1 2 3 4 5 Overall Comments Regarding References:
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COURSE WRITING SAMPLES: course topic outline, objectives, course abstract, and a few pages of actual content Course Sample #1 1 2 3 4 5 Instruct. design: thorough, congruent, etc 1 2 3 4 5 Objectives are clear, well written, directed 1 2 3 4 5 Other 1 2 3 4 5 Course Sample #2 1 2 3 4 5 Instruct. design: thorough, congruent, etc 1 2 3 4 5 Objectives are clear, well written, directed 1 2 3 4 5 Other 1 2 3 4 5 List of Additional authored Courses: 1 2 3 4 5 Additional Comments Regarding Course Samples: COURSE PROPOSAL ITEMS Learning Objectives: Well written, targeted, appropriate 1 2 3 4 5 Topic Outline: Well designed, logical flow, relevant 1 2 3 4 5 Timing/ Topic Allocation: 1 2 3 4 5 Other: 1 2 3 4 5 Additional Comments Regarding Course Proposal: TIME/COST & MISCELLANEOUS Timeliness/Completion Date: 1 2 3 4 5 Cost: 1 2 3 4 5 Organization of RFP Response, ie, easy to follow 1 2 3 4 5 Competence of Layout of RFP Response 1 2 3 4 5 Impression of Candidate’s general organization & competence via my interactions
Testimonial(s) Comments & Conclusions:
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Client: Arizona Association of REALTORS Client Contact: Barbara Freestone Type of Service: Certification course creation Project: Certified Ethics Instructor Program Project Description: BettsWorks was contacted by the Arizona Association of REALTORS® to create a six-hour course to certify the competency of instructors providing presentations that meet NAR’s mandatory quadrennial ethics training requirement. The project requirements and deliverables included:
• Timed Outline with Objectives (6 hour course—50 minute hours) All COE Articles will be provided to students; however, only four
will be covered in depth through class. Issues related to instruction of the mandatory ethics training
course will be identified and explored with students. Best teaching practices related to instruction of the mandatory
ethics training course will be identified and explored with students.
For each article an explanation regarding its relation to the practice of real estate.
Instructional skills to be basic in nature and to reference the teaching of NAR’s mandatory ethics training course whenever possible.
Instructor’s Manual (directions & explanatory notes) • Student Manual • List of resources (included in the manuals) • PowerPoint Program • Any additional, supplemental materials referenced in instruction • A scenario-based exam and answer key (min. 25 items) • Style sheet describing the above items
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The following are sample pages from the Arizona Association of
REALTORS®’ Certified Ethics Instructor program – Instructor
Guide.
Note: The following material is copyright protected by the Arizona Association of REALTORS®.
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Unit 1, Segment 3: Why Ethics? Why now? PPT 12 The Code requires REALTORS® to treat all parties honestly. Explain that REALTORS® often find themselves with ethical dilemmas. For instance, they are representing their seller client at an open house and a consumer comes in and discloses a lot of personal information. The REALTOR®, who now knows a lot about the consumer, can decide to do the ethical thing and explain agency relationships or not. Or, if the consumer really likes the house but not the list price, the REALTOR® could (or could not) divulge that the seller will go lower. The same scenario works for a buyer agent – but in reverse. Also some brokers actually have policies that contradict the Code. How does the ethical REALTOR® deal with that? Take a few minutes and discuss ethical dilemmas because of agency relationships.
Potential Ethical Dilemmas for REALTORS® Training Tip: Go beyond the material in the NAR materials to reinforce the value and importance of behaving ethically.
REALTOR®
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PPT 13 - 14 The Good News… The Bad News… Ask: How could you use this information to teach the ethics class? How do we improve this? By teaching ethics!
Ethics are good for business! According to the NAR 2009 Profile of Home Buyers and Sellers: Agent is honest and trustworthy is the most
important factor when choosing an agent (31%) followed closely by reputation of agent (23%).
When ranking the importance of real estate
agent skills and qualities, 98% of respondents ranked “honesty and integrity” as very important.
Training Tip: Don’t be afraid to explore REALTOR.org for additional resources to enhance your own training materials! A 2008 Gallup Poll: Real estate agents received relatively neutral ethics ratings. According to the poll,
“About as many Americans think each of these professions has low honesty and ethics as rate them highly, while the plurality or majority considers the professions of ‘average’ integrity.”
Source: www.gallup.com/poll/124628/Clergy-Bankers- New-Lows-Honesty-Ethics-Ratings.aspx
A 2006 Harris Poll indicates that only 7% of the public trusts the advice of a real estate licensee “completely,” 20% said they don’t trust the advice “at all.”
Unit 2, Segment 2: Articles 1-17 of the NAR Code of Ethics Articles of the COE 45 minutes PPT 18-19 Review each Article making sure to note the tie-in to the Arizona regulations and the real-life practice tips. The definition of each Article here comes from the CEAM. The longer definitions are in the COE handout. Teaching Tip: Remind participants that when teaching the Quadrennial Training they should incorporate Arizona regulations and laws as applicable. Examples have been included with this section of the training to help them. DO NOT go into the Articles in too much depth. Some of the information has been provided to the participants as reference material only.
Articles of the Code of Ethics NAR Quadrennial Training requirements do not require the review of each Article; however, this course requires trainers to be familiar with each Article. The COE defines each article and its Standards of Practice. The summary for each article below is the one provided in the CEAM. Article 1: Protect and promote your client’s interests but be honest to all parties
(More on Article 1 and how to teach it will follow in subsequent sections.)
Articles 2 and 3 NAR has a video on 2 and 3. NAR also provides additional training materials to use with the video. You can access that video and the supplemental materials on REALTOR.org at http://www.realtor.org/law_and_policy/code_of_ethic s/coev_articles_2_and_3 or on YouTube at http://www.youtube.com/watch?v=OyYIGXz43Bo&featu re=related Article 2: Avoid exaggeration, misrepresentation, and concealment of pertinent facts. Do not reveal facts that are confidential under the scope of your agency relationship.
(More on Article 2 and how to teach it will follow in subsequent sections.)
PPT 20-21 As you go through this Unit, periodically ask the class for input as to how an article may be violated in real-life and remind them to always tie their training to real life examples. Remind the participants that they must teach what’s actually in the Code, not what they personally think. In 2009, in AZ, there were 28 Article 3 violations charged. Five were forwarded for a hearing, 23 were dismissed, 3 were found “no violation”
Article 3: Cooperate with other real estate professionals to advance client’s best interests.
This Article compares to Arizona Regulation R4-28-1101. Duties to a Client: Subsection D: A licensee shall not allow a controversy with another licensee to jeopardize, delay, or interfere with the initiation, processing, or finalizing of a transaction on behalf of a client. This prohibition does not obligate a licensee to agree to alter the terms of any employment or compensation agreement or to relinquish the right to maintain an action to resolve a controversy.
According to GRI 308... Cooperation optimizes the benefits available to
clients and customers as well as REALTORS®. Cooperation ensures sellers of the broadest possible market exposure.
Cooperation should be extended as the normal professional practice unless there is an overriding reason to withhold it.
There are two valid reasons for not cooperating on a listing: (1) instructions from the seller to not cooperate; (2) cooperation is not in the seller’s interest.
If the seller instructs you to not cooperate, your should notify the affected REALTORS® in writing that there will be no cooperation and compensation based upon instructions from your principal, and be prepared to justify your refusal to cooperate if you are charged with an arbitrary refusal to cooperate.
The same amount of cooperating compensation does not have to be offered to all classes of cooperating brokers however.
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Class Discussion. Use this opportunity to talk about this Article and potential violations but turn the topic to … “In your classroom, how would you teach this Article? Brainstorm some answers.
Although compensation does not necessarily
require compensation, not compensating could possibly be construed as not cooperating and generally not in the best interest of the client.
How/have you seen this Article violated in real estate practice in your area? ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________
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PPT 87-91 Pages 32-33 Point out that additional details about the Code of Ethics are available in the CEAM and in the “Before You File an Ethics Complaint” brochure. Remind them that COE trainers should spend time going through the materials available to them on REALTOR.org. Follow the flow-chart on the right to explain the basics of the Formal Complaint Process. Details for this process are in the “Before You File An Ethics Complaint” brochure. On the third step, ask the following question: True or False – the complaint can include a citation of a standard of practice as a potential violation. The answer is False. Only Articles can be cited.
Formal Dispute Resolution – Filing an Ethics Complaint Key concepts to emphasize when teaching: Who can file a complaint? Role of grievance committee. Role of ethics hearing panel. Authorized discipline and administrative fees. Primary emphasis of discipline. Due process. Preponderance of the evidence.
Basic process:
Complainant files ethics complaint with local association within 180 days (timely filing)
Complaint includes narrative description and must cite one or more of Articles that were allegedly violated
Local association’s Grievance Committee acts like a “Grand Jury.” Reviews complaint and determines, “If allegations made are taken as true, is there a violation of an Article or Articles?”
Yes No
Grievance Committee forwards complaint for a hearing. Due process is important.
Grievance Committee may feel that allegations would not constitute a violation. Complainant should review complaint to see if article cited was appropriate. Appeal is available. A
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Have a brief discussion about how the participants can best teach this section because there are a lot of exam items based on this material.
Complainant has burden of proof. Standard of proof must be “clear, strong and convincing.”
Hearing is held. Panel makes decision and issues Findings of Fact. Determines discipline. Appeal is available on limited basis.
A
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Presentation.
Note: The following material is copyright protected by the Arizona Association of REALTORS®.
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The following is a sample page from the Arizona Association of
REALTORS®’ Certified Ethics Instructor program – Style
Guide.
Note: The following material is copyright protected by the Arizona Association of REALTORS®.
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Style Guide For: Arizona Association of REALTORS®; Certified Ethics Instructor Program By: Lisa Betts/Adrienne Nichols Date: March 10, 2010 Manual/Reference: Gregg Manual of Style 10th ed. -Sabin General Format: Left-Right columns Reference: Font: Times New Roman, Arial, Cambria Page Margins:
T&B=1; L&R=1.25
Document Elements Title Page:
Footer & Header Content:
Times New Roman all Intro Header: RBG128; 16pt “Arizona Association of REALTORS®” --20 pt vertical space-- Head1: RGB31-73-125, 36pt, left justified Head2:RGB79-129-189, 20pt, left justified Head3: RGB128, 16pt --No vertical spacing between 3 heads Note: blue/gray zig zag box graphic across bottom 1/3 Header: Arial bold, 14pt, RGB54-95-145 --no vertical space between header & text-- Text: Arial 12pt black; single spaced Text……(ellipses)…Page # Called “Course Introduction”& includes “course Learning Objectives (italicized)” Head1: Cambria 18pt bold; left justified --12pt vertical space-- Text: Cambria 14pt Head2: Cambria 16pt bold; left justified “For The Instructor” (separate page) Head1: Cambria 16ptbold; centered Head2: Arial 14ptbold; left justified Text: Arial 12pt italic Head3: (wingding carrot) Arial 12pt bold; 12pt space before & after --- --- None provided in document Continuous pagination & footers beginning TOC as pg2. No header
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Client: Arizona Association of REALTORS Client Contact: Barbara Freestone Type of Service: Certification course creation Project: REALTOR® Certified Risk Management Specialist (rCRMS) Project Description: BettsWorks was contacted by the Arizona Association of REALTORS® to create three, complimentary courses that comprise a proprietary certification program. Each course consisted of 6-7 hours of content based on the book Arizona Real Estate: A Professional’s Guide to Law and Practice by K. Michelle Lind, Esq., AAR legal counsel, along with custom-developed collateral content. The three courses are:
1. “Federal Legal Issues” 2. “Advertising, Marketing & Misrepresentation: Risk & Regulation” 3. “Claims, Litigation and Remedies”
The audience for these courses--and the certification--is brokers and sales agents. The purpose of the certification is to provide risk management information on the subjects: to increase members’ awareness and knowledge so they can manage their risk better/implement risk management practices. The project requirements and deliverables for each course included:
• Timed Outline with Objectives (6-7 hour course—50 minute hours) • Student Manual • Instructor Manual • Style sheet describing the above items
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The following are sample pages from the Arizona Association of
REALTOR®’s rCRMS “Federal Legal Issues” Student Materials.
Note: The following material is copyright protected by the Arizona Association of REALTORS®.
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• Is a federal _________________________.
• Was enacted in 1974.
• Was created to ensure that buyers receive adequate information about the costs of financing and closing escrow on the purchase of a home.
• Was enacted to protect consumers from unfair practices by_________________________.
For real estate licensees, RESPA primarily impacts closing costs and settlement procedures and has two overarching goals.
RESPA is also especially helpful to borrowers as they see to make decisions about which lender to choose. This unit will primarily discuss the main goals noted in the graphic.
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Unit 2, Segment 7: Enforcement and Penalties for Violations
Enforcement and Penalties for Violations of the Fair Housing Act The Fair Housing Act is enforced by the Department of Housing and Urban Development (HUD) through its Office of Fair Housing and Equal Opportunity. HUD is also responsible for developing and enforcing regulations to promote the Fair Housing Act. One of these regulations is a requirement for businesses involved in housing/real estate transactions to display a fair housing poster [HUD-928.1 (2/2003)] in their office. Brokers’ Risk Reduction Tip
Prominently display the requisite Fair Housing Poster in your lobby or at your front desk. A copy of the poster is available from HUD at: http://www.hud.gov/offices/fheo/promotingfh/928-1.pdf.
The Complaint Process
• Complaints are usually filed with HUD • Time limitation to file complaint • Lawsuits can be in state or federal courts
If the complaint is filed with HUD, HUD will investigate the complaint and determine if the discrimination charges are justified or not. Complaint Process
File Complaint with HUD
•HUD investigates. •Issues a conciliation agreement if possible. •May refer to state or local agency .
Complaint moves forward
•Case goes to administrative with administrative law judge. Can issue injunctive relief. •Or case goes to Federal District Court where attorney general litigates it. •Damages and court costs can be awarded.
In addition
•Complainant can file suit in Federal District Court or state court as long as there is no conciliation agreement and administrative law judge has not started a hearing. •Actual damages, court costs and punitive damages can be awarded.
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Unit 2, Segment 8: Arizona Fair Housing Laws
Arizona Fair Housing Act (A.R.S. §41-1491 ET. SEQ) The Arizona Fair Housing Act is very similar to the federal Fair Housing Act. Arizona’s law has different procedures for the administrative complaint process.
• Fair housing complaints are filed with the ______________________________.
• ACRD will investigate the complaint at _______________ to the complaining person.
• Fair housing complaints filed with ACRD will be automatically dual-filed with HUD.
• A person has _______________ after an alleged violation to file a complaint. [http://www.azag.gov/civil_rights/TipCards/Housing.pdf]
Individuals who believe their rights have been violated can call the Civil Rights Division at 877-491-5742 (Phoenix office) or 877-491-5740 (Tucson) or use an online civil rights complaint form at http://www.azag.gov/civil_rights/complaintform.html, or write a letter and mail it to:
Arizona Civil Rights Division Office of the Attorney General 1275 W. Washington Street Phoenix, Arizona 85007
Title Intent
A.R.S. §33-1317 Discrimination by landlord or lessor against tenant with children prohibited . . .
Prohibits discrimination by a landlord against a tenant with children
A.R.S. §33-303 Discrimination by
Prohibits landlords from not renting to individuals with children. Also prohibits advertising for rental advertising that discriminates against families with children.
A.R.S. §20-1548 Underwriting
discrimination Prohibits discrimination in the issuance or extension of mortgage guaranty insurance
A.R.S. §41-1442 Discrimination in
places of public accommodation
A.R.S. §41-1492.02 Prohibition of
Prohibits discrimination by public accommodations and commercial facilities.
A.R.S. §32- 2153(A)(19)
Grounds for denial, suspension or revocation of licenses . . .
Allows the Arizona Department of Real Estate to suspend or revoke a license, deny the issuance of a license or deny the renewal or right of renewal of a license for violating the federal fair housing law, the Arizona civil rights law or any local ordinance of a similar nature.
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Unit 2, Segment 10: Unit Conclusion and Review There are _________________________ which may not be discriminated against. Practices such as refusing to sell or rent to individuals or families based on any of the seven protected classes is a fair housing violation. Actions such as _______________, ____________________ or __________________are strictly prohibited. Real estate practitioners should educate themselves about fair housing and stay well informed. Agents should have good lines of communication with their clients throughout the process and efficiently document any discussion. To help ensure adherence to fair housing laws, brokerages should have in place policies and procedures that are consistently enforced. NAR is an excellent source of information. NAR’s Fair Housing Handbook has sample checklists, sample forms, sample policies, etc. HUD also has resources, including a blog and Face Book page.
Fair housing isn’t just a broker issue or a sales agent issue. It’s both. As an agent, you may be willing to take a risk and engage in activities that violate fair housing laws. Should you choose to do so you not only risk your reputation and your license, you also jeopardize the reputation and license of your broker.
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The following are sample pages from the Arizona Association of REALTOR®’s rCRMS “Claims and
Remedies” Student Materials.
Note: The following material is copyright protected by the Arizona Association of REALTORS®.
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Unit 3, Segment 3: Risk Reduction Tips The following are some basic tips to potentially reduce the risk for claims.
• What is the nature and _______________ of the property?
• Have you read and understood the purchase contract and the related forms?
• What is the _______________and _______________ of the _______________?
• Is your information accurate?
• Avoid shortcuts
• Handle offers properly and get them to your clients as soon as is reasonable
• Think before you speak
Communicate
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Buyer Representation in Real Estate offers the following additional suggestions:
• Ensure that all parties understand the ____________________that are implicit or explicit.
• Pay careful attention to details, especially as a buyer’s agent: o Home inspection and required negotiations resulting from the inspection o Environmental issues and inspections o ____________________ o ____________________ o ____________________
• Inform clients about their _______________
• Prior to closing, offer the client a review of documentation, requirements, etc.
This applies particularly to buyer’s agents.
• Establish a standard closing system
• Provide clients with checklists
Activity Follow the instructions of the presenter. Identify at least five specific things that could go into a checklist to provide to clients.
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Unit 6, Segment 2: ADRE and Complaints The Arizona Department of Real Estate (ADRE) reports the following statistics for complaints:
Investigations and Development Services. Arizona Department of Real Estate
The ADRE investigates violations of the real estate statutes and Commissioner’s Rules by licensed real estate brokers and salespeople. The majority of complaints involve one or more of the following:
• ______________________________ • Dishonest dealings • ______________________________ • Unlicensed activity • ______________________________
• Landlord/tenant disputes
• ______________________________
• ______________________________
An action that may be unethical is not necessarily illegal. Consumers are directed by the ADRE to contact the Arizona Association of REALTORS® at www.aaronline.com/Disputes or by scanning the code below.
Fiscal Year Advertising Education Licensing Property Management
FY 2011 (as of June 22, 2011) 19 3 569 62 FY 2010 13 5 675 57 FY 2009 58 4 846 92 FY 2008 87 12 1010 95 FY 2007 114 12 4084 84
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Steps in Mediation In mediation, there is a neutral party, the mediator, who attempts to assist the parties to negotiate a mutually acceptable solution to the dispute. The mediator helps to realistically evaluate the merits of the claim or defense and help the parties evaluate the risks of litigation. Mediators can often provide a creative solution not always possible in court. During mediation, all parties (with or without attorneys) meet in the same room and each side make an opening statement. Each side states their claim or defense, evidence and their desired outcome. The parties are then separated to discuss their position in detail. The mediator works with both sides and helps each party evaluate the strengths and weakness of his or her position. The mediator then engages in shuttle diplomacy conveying each side’s concerns, positions, offers, and counter-offers. Everything told to the mediator in confidence should be kept confidential.
Mediator meets with all parties
Mediator meets with Party A
Mediator meets with Party B
Mediator goes back to Party A with Party B’s concerns and offers
Mediator goes back to Party B with Party A’s concerns and offers
Mutually acceptable and
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Client: Florida REALTORS® Client Contact: Will Campbell Type of Service: GRI; Course Review; Course Development Project: Review and Edit of New GRI Program Materials Project Description: The Florida REALTORS® Association (FAR) contacted BettsWorks to provide third party evaluation, correction, suggestions, and revisions regarding the course materials for its new GRI program. For the purposes of this project, materials constituted course learning objectives, student manuals, and exam items.
The project requirements included: • Standardized form to conduct evaluation • Establishing a consistent style and format for all materials so that they
appear to have been authored by the same person. • Providing general editing. • Reviewing and comparing materials to NAR established benchmarks
for GRI accreditation and making recommendations. • Reviewing content for breadth, depth, flow, objective alignment, exam
alignment, module-to-module consistency, and adherence to state mandated levels of difficulty—making recommendations—and acting on recommendations when needed.
• Obtaining new course material/content when necessary by outsourcing its creation to SMEs and/or facilitating its procurement by other means with the prior approval of FAR.
• Revising/creating exam items to comply with Florida commission rules regarding level of difficulty.
• Revising/Creating exam items to reflect new or altered course content. • Reviewing of all exam items for objective congruency and item
integrity in adherence to the established “Item Writing Guidelines.”
Deliverables included: • Style Guide and format template. • Completed NAR benchmark review form/peer review. • Revised student materials.
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Adjustable-Rate Mortgage
An adjustable-rate mortgage (ARM) is a loan with an interest rate that adjusts on the basis of changes in the economy and costs of a lender’s funds. Adjustable-rate mortgages are popular because they usually start with a lower interest rate and a lower monthly payment. It is important to understand the specifics of an adjustable-rate mortgage. It is also important to remember that ARMs not only go up in rate but they may go down in rate because they are based on a formula using specific economic data.
Pros of Adjustable-Rate Mortgage Cons of an Adjustable-Rate Mortgage
• Adjust with fluctuating interest rates, making them fair to both lenders and borrowers
• Good for short-term owners
• Most ARMs have caps and could have convertible options to convert to fixed rate
• Good for borrowers who have periodic wage increases
• Good for those who desire an “Interest Only” option
• Rate adjustments make them unpredictable
• Borrowers may tend to over- leverage based on the hope of receiving wage increases or property appreciation
• Could prove a disadvantage or even a danger to a short-term owner whose plans change; forcing him or her to bear the unexpected interest-rate adjustments
ADJUSTMENT PERIODS FOR ARMS All ARMs have adjustment periods that determine when and how often interest rates can change. There is an initial fixed-rate period during which the interest rate doesn’t change. This period can be as short as one month to as long as ten years. After the initial period, the interest rate will change. Common ARM products have the adjustments of one month, six months, one year, two years, three years, or ten years. They can adjust three ways: initial adjustment, annual or bi-annual adjustment, and life-time adjustment.
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CREDIT AND THE MORTGAGE PROCESS Understanding and working with credit is a critical part of the home buying and selling process. Credit scores play an important role in the credit process.
Understanding Credit Scores
Credit scores are a vital part of credit health. When a consumer applies for credit – whether it’s a credit card, a car loan, a personal loan or a mortgage – lenders will want to know the consumer’s credit risk level. To understand an individual’s credit risk, most lenders will look at the individual’s credit score. A credit score influences the credit that’s available and the terms (interest rate, etc.) that lenders offer. The payoff from a good credit score can be significant.
[Source: www.freddiemac.com/creditsmart/pdf/YourCreditYourHomeYourFuture.pdf ]
For Example
If a consumer has good credit: A $125,000 home mortgage at 7% for 30 years costs $831.63 per month for principal and interest. After making all 360 of the payments (12 months times 30 years), the total paid is $299,386.12. If the consumer’s credit is impaired: A $125,000 mortgage at 12% for 30 years costs $1,285.77 per month for principal and interest. After making all 360 of the payments (12 months times 30 years), the total paid is $462,875.66. The difference: That’s a difference of $163,488.86 in additional interest the consumer will pay over the life of the 30-year mortgage if the consumer’s credit is impaired and the consumer is charged a higher interest rate on his or her mortgage.
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Unlicensed Practice of Law
There is no clear line between what is, and what is not, the unlicensed practice of law. Generally, if knowledge to do specific work of a legal nature is not within the average person's grasp, then to give advice or render services to others regarding such a situation is the unauthorized practice of law.
Examples of the Unlicensed Practice of Law
• Advising a customer or client whether there has been a breach of a sales contract
• Drafting an assignment of contract
• Explaining a party’s legal rights to terminate a contract
Restrictions on Brokers and Sales Associates
The broker or sales associate is restricted to drafting those parts preliminary in nature for bringing the buyer and seller together (e.g., memorandum, deposit receipt, contract involving broker's or real estate licensee’s services).The broker may not explain the legal rights of a party to a sales contract, although the broker or agent can read over the contract with the party. Brokers may not complete standard conveyance forms such as deeds, mortgages, notes, assignments and satisfaction except as owners. An agent may not use a power of attorney to draft leases or other legal documents for the principal, but may become an authorized signatory for the principal.
Preparing Leases
There are two residential lease forms approved for use by non-lawyers by the Florida Supreme Court.
Residential Lease for Apartment or Unit in Multi-Family Rental Housing (other than a duplex) Including a Mobile Home, Condominium, or Cooperative (for a term not to exceed one year);
Single Family Home or Duplex (for a term not to exceed one year). These can be obtained through [www.floridarealtors.org]. In general, a non-lawyer who is not a party (lessor or lessee) may assist parties in filling in the blanks by engaging in limited oral communication with the parties. Non-lawyers other than the parties are prohibited from modifying these forms.
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FEDERAL INCOME TAXES AND DEDUCTIONS Taxpayers often participate in discussions about write offs or tax deductions. Just as often, however, the average taxpayer doesn't fully understand the implication of the write off or the deduction. In an effort to understand the value of taking a deduction, real estate licensees and homebuyers must first have an understanding of basic income tax rates.
Marginal Tax Brackets
A taxpayer’s marginal tax rate is determined after total income and adjustments to that income are calculated.
After taxable income is determined, the taxpayer needs to refer to the tax tables by filing status (single, married filing jointly, married filing separately, and single head of household) that are set each year by the IRS. Note: Refer to www.irs.gov for the most updated tax rate
schedules. The QR code to the left provides information from the IRS outlining income schedules, also available at www.irs.gov/pub/irs-drop/rp-11-12.pdf. The United States has progressive income tax rates; that is, to
determine the amount of tax owed, a process called stacking is used. The more taxable income a taxpayer has, the higher the tax rates become and, therefore, the more tax that is owed. Each rate on the tax table is called a bracket. If a taxpayer goes from one bracket to a higher one, it is called bracket creep. In theory, a taxpayer whose income falls within the higher tax brackets is taxed at a higher rate. The marginal tax rate is used to determine how an investment would be impacted by taxes, or in calculating the tax savings for
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THE CHANGING TIDE OF SOCIAL MIGRATION Florida continues to be a desirable location for immigrants to the United States. From 2000-2009 Florida ranked third behind California and New York in the number of legal immigrants with 1,083,659 new residents.
[Source: US Department of Homeland Security, 2009 Yearbook of Immigration Statistics (Released 2010), Data from Fiscal Years 2000-2009]
Among the 50 major metropolitan areas the US government ranks, Florida is home to four of the top 50. See the table on the next page for more details.
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Client: Vermont Association of REALTORS® Client Contact: Robert Hill, Type of Service: GRI and Consulting Project: Vermont GRI Accreditation Submission Review Project Description: BettsWorks was contacted by the Vermont Association of REALTORS® to review and revise GRI program accreditation documents. The goal of the project was a successful accreditation of the Vermont GRI program. The project requirements/deliverables included:
• Written documentation explaining NAR’s clarifications regarding revision of the GRI Accreditation submission.
• Written response to NAR regarding direct questions from the review panel.
• Revised accreditation submission reflecting revised objectives and evaluation forms.
• A second round of submission adjustments --if needed/directed by the NAR review committee.
Note: There are no sample documents available for this project.
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PAR GRI 403 Instructor Guide Sample Content
PAR GRI 403 Student Guide
PAR GRI 403 Student Guide Sample Content
REBAC
Course Writer Review Worksheet
Course Writer Review Worksheet
Course Writer Review Worksheet
Course Writer Review Worksheet
AAR Instructor Guide
AAR rCRMS Student Workbook
Arizona Association of REALTORS rCRMS Student Workbook
Florida REALTORS GRI
Vermont Association of REALTORS