To access the NAR Code Of Ethics online course, click here.

To download a copy of the 2011 REALTOR(R) Code of Ethics, click here.

Check back for the January CE dates for the first offering by how2educate LLC

Looking forward to seeing you in the classroom!!

Kathy Howe

]]> http://how2educate.com/2011/12/01/realtorr-code-of-ethics-training-dec-ce/feed/ 0 http://how2educate.com/2011/11/20/november-ce/ http://how2educate.com/2011/11/20/november-ce/#comments Mon, 21 Nov 2011 04:36:03 +0000 sedonakathy http://how2educate.com/?p=1139 Like

Come…

Kathy Howe, Owner/Administrator/Educator

You are the end of the line, or as Harry Truman was shown to believe:  ”The buck stops here.”  Are you ready?

Under the Arizona Department of Real Estate, a Designated Broker is one who:

• Supervises the licensees under the employing broker (the company)
• Is responsible for the office policies
• Is responsible to be sure all licensees have signed an Independent Contractor Agreement (IGA), if licensee is considered an Independent Contractor
• Is responsible for all agreements written by licensee
• Is responsible to review all listing and purchase documents “within 10 days of execution”
• To see that all listing agreements are in writing
• More…

Licensees are Independent Contractors under IRS Code Section 3508, if:

(A) such individual is a licensed real estate agent,

(B) substantially all of the remuneration (whether or not paid in cash) for the services performed by such individual as a real estate agent is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and

(C) the services performed by the individual are performed pursuant to a written contract between such individual and the person for whom the services are performed and such contract provides that the individual will not be treated as an employee with respect to such services for Federal tax purposes.

It’s why the employing broker (= the company) needs to have an Independent Contractor Agreement (ICA) between the company and the licensee.  If no ICA, the designated broker will be responsible to deduct taxes, among other requirements.

Every broker is responsible for developing Office Policies.  New designated brokers can go to the Arizona Department of Real Estate to find an Office Policy Manual Outline.  While somewhat outdated, due to the digital world, it is a place to start.

Be advised that if you are ever involved in a lawsuit, a fair housing complaint, or possibly an ADRE complaint, your Office Policies will be scrutinized.  Take the time to write them with the concept in mind that the licensees under you will use them as a guideline (you hope).

Listing agreements must be in writing.

32-2151.02. Real estate employment agreements; definition

A. All real estate employment agreements shall:

1. Be written in clear and unambiguous language.
2. Fully set forth all material terms, including the terms of broker compensation.
3. Have a definite duration or expiration date, showing dates of inception and expiration.
4. Be signed by all parties to the agreement.

So, “until it sells” is not a definitive expiration date.  It follows the same belief that the use of “upon presentation” in a purchase agreement for the time for acceptance is also too vague and not definitive.  It’s hard to determine when someone might or might not be in breach.

Designated brokers are known to lay awake nights and cringe upon receiving a certified letter, or a call from a licensee that starts with “can we talk”.   These people are Independent Contractors, not employees.

If you don’t think you are cut out to be a designated broker, you can always work for one as an “associate broker”…

If you want to become a broker, June is Broker month at how2educate LLC.

Call 928-274-4088 or email:  kathy@kathyhowe.com

Kathy Howe, designated broker for how2arizona real estate LLC

The Arizona Association of REALTORS(R) have revised the Arizona Residential Purchase Contract.  A welcome revision as the last agreement was dated 2005.  Things change as of 2/28/11.

You can access the AAR website for specific sample forms, which include a complete 2005 PC showing the deleted verbiage and a complete 2011 PC with highlighted new language.

Thanks, AAR!

Sedona agents can take how2educate LLC’s February 24th “Contract – Writing – Cures” which will use the new AAR Contract.  Class starts at 1:30.  3 hrs Contract Law.  This class covers what is a cure notice, its purpose, when to use it, and when not to use it.

Sign up for the class by sending an email:  kathy@kathyhowe.com

BE PREPARED!

Kathy Howe aka SedonaKathy