• March 19:  8am – 11am   Res. v Land Contract
• March 19:  11am – 2pm  Agency – 26the Amendment
• March 19:  2pm – 5pm  Short Sales, Deficiency Judgments  (Legal Issues)

• March 20:  8am – 11am  Legal Issues – Potpourri
• March 20:  11am – 2pm  Fair Housing – “The Dream”
• March 20:  2am – 5pm  Commissioners Standards for Business Planning

• March 23:  8am – 2pm  Contract Writing (3 hrs contract & 3 hrs legal issues)
• March 23:  2pm – 5pm  Buyer Advisory (Disclosure)

1120 W SR89A, B5

Kathy Howe aka SedonaKathy

Continuing Education, Salesperson, and Broker Licensing Classes

We have added 2 classes on Feb. 20….

• Fair Housing – gender issues  10am-1pm
• Legal Issues – potpourri  1pm-4pm

For Course information, click here, and scroll down to course.

We also have gMail business classes (no RE CE hours)   Each:  $30

• Tuesday, Jan. 24, 3-6
• Wednesday, Feb 29, 3-6

From the Sedona Chamber of Commerce:

City of Sedona Amends Business License Rules

The City of Sedona, City Council adopted the following amendments to the Business License Program at their meeting on December 13, 2011.  Effective dates of the business license ordinance changes are January 13, 2012. 1.  Amendment to section 8-2-2(A): All businesses operating within City limits will be required to obtain and maintain a current business license. For 2011, the Ordinance only required businesses with a TPT liability to apply and maintain a current business license. For 2012, all businesses operating within the City must apply for and maintain a current business license. 2. Amendment to section 8-2-2(D): Creation of a delinquent fee for businesses that fail to obtain a business license. For 2011, there was no delinquency fee for businesses that failed to obtain a business license. For 2012, a penalty of $5.00 per month shall be assessed on all delinquent and/or underpaid licenses.  To avoid penalties, the 2012 business license application and full payment must be received on or before February 29, 2012. 3. Amendment to section 8-2-3(B): Creation of a temporary Special Event Business License at a cost of $7 per event per participant. For 2011, there were no Special Event Business Licenses.  Based on feedback from the business community, a condensed business license form will be available for special events.  The special event business license will be valid for seven consecutive days after the date of issuance. The City of Sedona has partnered with Revenue Discovery Systems (RDS) to assist the City of Sedona in the issuing of its annual business licenses.  Business Licenses may be obtained online at www.bizlicenseonline.com.  Customers are encouraged to contact RDS for their business license and taxpayer questions at (866) 940-7660 or emailazsupport@revds.com. Get licensed and avoid the penalties that will be yours, if you don’t register your Sedona business.

Are you ready to sync your email addresses, your calendar, your alerts, your contacts, your files and more to your desktop?  And file docs in the Google cloud?

gMail’s where it’s at!!!

On 12/28/11, how2educate LLC will offer a training class on how to use gMail as your desktop sync-site.  3PM to 6PM.  Bring your computer, laptop, tablet, or use one of ours.

Reserve your seat:  $35/person

Email Kathy:  kathy@kathyhowe.com

• 1120 W SR89A, B5
• Sedona, AZ

  Do you have what it takes to be a highly effective real estate agent?  Do you have the patience, the math skills, or the assertiveness to compete in a highly competitive industry?

Lindsey Webster has written a guest post for how2educate LLC:

Top Five Great Traits of Highly Effective Real Estate Agents

Click here to read her article.

Then click here to find out more about becoming a real estate agent in Arizona.

Kathy Howe aka SedonaKathy

• Owner
• Administrator
• Educator

how2educate LLC

• Prelicense Salesperson and Broker
• Arizona Continuing Education
• Distance Learning

Sedona, AZ

Click here to know more about the CE schedule and the courses taught by how2educate LLC

 Kathy Howe

Buy 5% more

Made in America

products in 2012 to help the economy

We at how2educate LLC will also be making every effort to purchase at least 5% more “Made in America” products in 2012.

It can only make the USA economy stronger.

Why not join us?

“Made in America”   

Kathy Howe aka SedonaKathy

• Dedicated to helping our economy
• Proud resident of Uptown sedona
• 928-274-4088

Do you allow the Buyer’s agent at the presentation of the offer?

This article might be of interest to you.  Click here.

Kathy Howe

Real Estate Broker/Agent/Educator/Mediator

Sedona, AZ

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

Sedona in October is awesome

This is Oak Creek Canyon near West Fork

Can you study and enjoy the Sedona environment?  Of course.  how2educate is offering 9 CE classes over 3 days to help you get in your AZ RE renewal hours.  Join others.  Chose 8 courses for $90, 3 for $50, or 1 for $20.  Breakfast snax and lunch items available.

Kathy Howe aka SedonaKathy

Uptown Sedona Resident

Yes!  Arizona allows disclosed “dual agency”.

First, we need to understand the agency structure in Arizona.

In Arizona, under the 26th amendment to the State Constitution, real estate licensees are allowed to “…draft, or fill out or complete…” such documents as “…purchase agreements and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale of realty, and bills of sale” when incidental to a transaction when acting as a salesperson or a broker for a party.  Licensees may not draft or fill out documents and charge to do so.  The listing agreement or the buyer broker agreement works as the employment agreement, spells out the representation, and addresses compensation.

Can a salesperson in Arizona represent a buyer or seller without a written employment agreement?

Yes.  But, under the Statute of Frauds, Arizona Courts will not entertain a claim for compensation without a written agreement.  To compensate for this situation, the REALTORS(R) can file with the Arizona Association of REALTORS(R) through their local Association for arbitration under the REALTOR(R) Code of Ethics.

Listing Salesperson + Seller                               Buyer Broker + Buyer

What happens when a Listing Salesperson who works with Regis Realty receives an offer from a Buyer Broker who is also with Regis Realty (both work under the same Designated Broker)?

DUAL AGENCY

representation

It means that neither the Designated Broker or the Salesperson can “…represent the interests of one party to the exclusion or detriment of the other party…”  REALTORS(R) use a “Consent to Limited Representation” form for the purpose of disclosure, consideration, and consent.

How does it work?

Listing Salesperson cannot (without written permission from seller) disclose anything about the price or the terms but the list price and the terms offered.  The Buyer Broker cannot suggest a price other than the list price to the buyer-client.

• No confidential information may be disclosed in either direction.
• Salespersons are obligated to deal honestly with all parties.
• Negotiating for the client may not be possible.
• Limited representation.

In Arizona, the employment agreements are with the Designated Broker.

A Listing Salesperson acts for the Designated Broker when taking a listing, and the Buyer Broker acts for the Designated Broker when agreeing to represent a buyer.

Arizona requires disclosure of agency (not necessarily in writing) before an offer is written.

The REALTOR(R) community uses the READE form for the purpose of letting the public know how agency works in Arizona and then the person can select the representation s/he wants or needs.  The READE form is only a disclosure form, not an employment agreement.

Listing Salesperson also represents buyer =

DUAL AGENCY

The same rules apply.

In each case, the Designated Broker is the only “broker/agent” in the mix.

Dual Agency is legal in Arizona as long as it has been disclosed and the clients have consented to the limited representation.

Question:

Should a buyer go directly to the Listing Agent for information about a property?

It never hurts to talk to the Listing Agent.

Do you want to be represented by the Listing Agent as a Dual Agent?

Or do you want a Buyer Broker advocate to assist you with your purchase?

QUESTION:

As a Seller, you want everyone to see your listing and many of you will list with a company who is known to move property.  You will be asked to sign an Arizona Listing (employment) Agreement that says you want the company to show the property to any potential buyers, even if it places you in a dual agency position.   The new SVVAR Exclusive Right to Sell Employment Agreement has no “Agency” information in the agreement at all.  Be sure to read what you sign and be sure that your agent gives you a READE form (disclosure) with the listing agreement.  In Sedona and the Verde Valley, agents who do not give the Seller a READE form could be guilty of not giving agency disclosure before an agreement is signed.

The question becomes:  Do you understand Arizona’s Dual Agency = Limited Agency representation?

Give it thought…

Then take a look at the different Sedona properties for sale at our sister site:  how2arizona real estate LLC

Kathy Howe, owner/broker of how2arizona real estate LLC

and owner/administrator of how2educate LLC

In a prelicense contract writing class a newbie said he needed to use an “As Is” form in the counter offer because the “seller didn’t want to make repairs…”

Three or four agents mentioned the same words in a slightly different context, but with the same intent during an attorney-taught real estate CE class. The surprise came when the attorney did not clarify “As Is” and it took two brokers in the audience to make clarifying statements.

So what is the “As Is” addendum and how should it be used?

If your Buyer has signed an “as is” addendum and submitted it with the offer, or agreed to an “as is” condition with the counter offer, does that mean the Buyer cannot ask the Seller for repairs?

No.

Does the Seller have to grant the Buyer’s wish regarding the repairs?

No.

Does everyone need to get their shorts in a knot about it?

No.

Do you know what an “as is” really does?

First: The Seller and Buyer agree that the premises will be sold “…in its existing condition.”

Believe it or not, nowhere in the AAR “as is” addendum does it say that seller does not have to pay for repairs. The AAR form only says that the “Seller shall not be obligated to correct any defects that may be discovered…” Bless the listing agents who state in the Agent Remarks of the listing: “Seller will not pay for any repairs”, instead of stating “Must include an As Is addendum”.

If the Buyer’s agent recommends that his/her Buyer fill out and attach an “As Is” addendum with the purchase offer, what will the Buyer give up?

“As Is” addendum

“…Seller makes no warranty to Buyer, either express or implied, as to the condition of the premises, including but not limited to, Seller’s Warranties in Lines 166-168 of Section 5a…”

Lines 166-168 of Section 5a.

“Seller warrants and shall maintain and Repair the Premises so that at the earlier of possession or COE, (i) all heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems and heaters, if any), free-standing range/oven, and built-in appliances will be in working condition…”

The “As Is” language removes the warranties on these items.  Can that be good for the buyer?

And, “…Buyer waives (2) zoning of the Premises, or (3) Premises’ fitness for any particular use or purpose…”. Translation: Seller is not warranting the “zoning” or…

Okay, so a bank would understandably want an “As Is” addendum included with any purchase offer on their properties because they are not occupying the premises, have probably never seen the property, and probably acquired it through a Trustee Sale.

But really now, a Seller who has lived on the property for 10 years wants an “As Is” addendum attached to the purchase agreement?

Why?  Is there something to hide?

The Seller does not want to pay for any repairs? Maybe.  Maybe, buyers beware…

Would a home inspection disclose issues like this?

If the sale goes through and there is a dispute, will the “As Is” stand up in court?

Only if the Seller has disclosed “all known latent material defects…” and has given the Buyer the opportunity to investigate and do his/her due diligence. In Arizona real estate CE classes you will hear reference to “S-Corp”. Read more about it.

Example: Property is a top floor condo. Buyer has an inspection performed. Inspector misses an area where the ceiling and the wall intersect. Had the inspector gone up on the ladder (ceiling 16 ft high), he would have seen a small discoloration which would have disclosed a current leak. Buyers move in after closing and during a rain storm they have water dripping from that same small area. Nothing on the SPDS. Buyer calls in HOA and insurance company. Insurance company says “pre-existing condition”. HOA says previous owner was aware of the leak and had requested HOA take care of it, but the HOA was still getting bids when the property conveyed to the buyers and the meeting minutes did not reflect the issue in the packet received by the Buyer during the inspection period.

Will “As Is” stand up should this go to Court?

You be the judge…

Ask yourself: what lurks behind “As Is”?

Kathy Howe, Owner/Broker/Educator  

• how2educate LLC
• how2arizona real estate LLC
• how2realty referrals LLC
• Sedona, AZ
• Sedona Properties for Sale
• Sedona Verde Valley MLS
• Greater Phoenix MLS:  ARMLS
• Facebook.com/sedonakathy
• Twitter.com/sedonakathy

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

An owner’s title policy is a must for those purchasing a home in Arizona.  And over the years the coverage has increased items such as zoning, encroachments, permits and subdivisions.  Sedona real estate agents are used to seeing preliminary title reports and asking for documentation to Schedule B items.

Reviewing an owner’s policy should be part of each real estate agent’s “to-do” list.  Amazing what you might find.  Today I was reviewing a pre-lim for a buyer and I found that there are now deductibles for certain insurance items:

Note: The owner’s policy of title insurance committed to be issued will contain Deductible Amounts and Liability Limits relative to certain Covered Risks as follows:

• Covered Risk 14 (Subdivision Law Violations) has a deductible of 1% of the Policy Amount or $2500 whichever is lesser, and a Maximum Dollar Limit of Liability of $10,000.

• Covered Risk 15 (Building Permits) has a deductible of 1% of the Policy Amount or $5000 whichever is lesser, and a Maximum Dollar Limit of Liability of $25,000.

• Covered Risk 16 (Zoning) has a deductible of 1% of the Policy Amount or $5000 whichever is lesser, and a Maximum Dollar Limit of Liability of $25,000.

• Covered Risk 18 (Encroachment of Boundary Walls or Fences) has a deductible of 1% of the Policy Amount or $2500 whichever is lesser, and a Maximum Dollar Limit of Liability of $5,000.

Licensees:  It’s important to review the Schedule B information and be sure to have all supporting documents given to your buyers and sellers.  Some exceptions or exclusions may cost your clients greenbacks!

Have a great day.

Kathy Howe aka SedonaKathy

How is NAR’s membership responding to NAR’s Political Party?

Let’s see some of the comments.

First, let’s go to Rob Hahn’s Blog:  Click here. We reported this yesterday after learning that NAR’s AEs (Association Executives) first learned about the new creation at their Dallas meetings the week of 3-17 thru 3-22.  Rob Hahn gives a “good, bad, and ugly” look at the New Political Party after giving background on NAR’s political clout.  Start your information gathering here.

New Hampshire RE REALTOR member, Monika McGillicuddy, writes her blog, recapping NAR’s endeavor and listing other blogs commenting on where NAR might be taking us.  Click here.

One of the best commentary comes from Jay Thompson, affectionately known as @PhxREGuy, a Gilbert real estate broker who also serves on various NAR Committees.  He voices his sentiments that he does not want NAR to take his $$s and put them into the campaign coffers of someone JT would not normally vote for…voting should be a personal thing and campaign funds can be given on a volunteer basis.  JT does not denigrate NAR nor does he malign what NAR does.  He simply does not agree with NAR mandating that membership’s dues should go up 50% to fund NAR’s political business plan.

Contact your NAR representatives to let them know what you think.  Since NAR makes finding email addresses difficult, try these links first:

Regional Vice Presidents:  Click here.  You will have to log into your NAR account.

Read the NAR RAPAC Trustee’s November 2010 meeting minutes and you will then understand why NAR is moving in this direction.  NAR appears to have let success go to their head and they believe you want NAR to invest this money in this manner.  Do you?  Click here. You will have to log in.

What does this mean to you as a REALTOR(R) member?  It means you will lose your right to vote for the candidate of your choice.  Think about it.  If you disagree with NAR’s choice of candidates, consider what it will take to financially overcome the clout of NAR.  Is that who you are?  Is that what you are about?  Did you get a real estate license in order to have them vote for you?  I didn’t.  Mandatory funds for political reasons goes against everything I am and everything I have ever stood for.  I am a registered Independent.

I grew up in a union family.  I watched my father work, then strike, work, then strike…  I watched my mother have to go to work when my father was on strike.  At 16, when I graduated from high school, I wanted to work before going to college.  My first job was with Southwestern Bell who had a 6 month probationary period of time.  I passed with flying colors (got a promotion) and was taken into a room with documents to sign.  Yes, membership in the union.  I asked questions like:  ”Do I have to join?”  The answer was “No, but…”  I chose NOT to join.  I never got another promotion and I moved on to the Advertising and Marketing industry.

My point:  I love real estate!  I have taught GRI in 2 states.  I have chaired and vice-chaired many Arizona Association of REALTORS(S) committees, including the Legislative Committee for 2 years (the first year we won the “Committee of the Year” Award).  I’m proud of what I have done to voluntarily assist in safeguarding “private property rights”.  And I USED TO BE a 99-club member.  No more.  Like JT, I no longer donate to RAPAC.  Surprised?

NAR, in my opinion, has become so big, and so unfocused on what is important to the member and the consumer, that I can no longer support NAR’s efforts.  There has been mention of the Credit Union.  Maybe people belong to it.  I compared with other opportunities and saw no real value.

RPR.  I was so excited to get RPR, only to be disappointed because I live in Sedona, which is a bifurcated city with 2 different counties.  My niche is in Coconino County whose largest city is Flagstaff.  My office, located 3 miles away, is located in Yavapai County which is the largest county in the state.  RPR is not useful.  The data is not accurate; therefore, most is not relevant.  Yes, I tried working with RPR to make the data accurate, but finally gave up.  I could better spend my time assisting buyers and sellers find properties or teach AZ RE CE through my real estate school.  RPR is a huge disappointment for me.

On the benefit side of my REALTOR(R) affiliation:  my state of Arizona is light years ahead of other states in benefits.  Those that mean the most to me:  ZipForms and Digital Ink eSignatures.  Both are member benefits.  I don’t have to pay any subscription fees for them.  There is a negotiated Transaction Management platform available for $500/brokerage.  AAR negotiated $500 for each designated broker.  A sole proprietor gets to pay $500, the same as a large independent with over 1,000 agents.  Yes, many of us voiced our disapproval of the decision but big brokers rule… as a small company we don’t need the transaction management benefit as we have for years been a paperless brokerage and opted to purchase our own server, encourage the use of scan-email over faxes, etc.  Decisions like that AAR decision make you step back and wonder whose membership dollars are more important.

Membership in NAR is still focused around access to MLS, not political issues.

If NAR had or could have by the end of 2011, a nationwide MLS or data-sharing entity, it would transcend the NAR Political Party plan.  To date, REALTOR.com is losing market share day-by-day.  In my market Trulia is a much better lead generator without even going TruliaPro.  We’ve turned more Trulia leads this year.  We enhanced our REALTOR.com presence and got not one lead.  So much for that.  We are looking elsewhere.  We belong to both SVVAR and ARMLS.  We are thrilled with what ARMLS provides in all categories of listings.  We sigh and grumble about having to endure the use of the Rapattoni system.  We think it is primitive, comparatively speaking.  We need to be statewide.  Better yet, we need to be nationwide.  But, influential brokers are worried about their “market share”.

If you are a member of NAR, you hold the key.  Let your people know what you think.  Like JT (Jay Thompson) I will be writing everyone I know telling them of my displeasure with this decision.  Will it make a difference?  Probably not.  But, I’m going to try anyway.

Start with the Regional Vice Presidents, then your State Association, then your local Association.  If you are me, you will find emails for the NAR leadership one way or another…and when I do, I will publish them for others who may wish to contact them.

Enjoy your day.

Kathy Howe aka SedonaKathy

• how2educate LLC
• how2arizona real estate LLC
• how2realty referrals LLC
• Sedona, AZ
• 928-274-4088
• kathy@kathyhowe.com

No.  Not a joke.  And it will cost REALTOR members a $40 increase in dues next year.

$40 mandatory dues increase in 2012 for all members.

Read Rob Hahn’s synopsis of the announcement.  Click here. Feel free to add your comments to the blog.

Jay Thompson, Phoenix Real Estate Guy, will be doing a blog on the subject today.  Look for more from him.

You can log-in at REALTOR.org and read NAR’s description of the plan.

Also, let Tom Farley, at AAR know what you think of NAR’s move:

tomfarley@aaronline.com

Kathy Howe, Owner/Administrator/Educator

• how2educate LLC
• 1120 W SR89A, B-5, Sedona, AZ 86336

Just finished a great blog by Robert Kennedy of GALearning.  On Twitter you can follow him as @Robert_Kennedy.

How did I find him?  He found me first on Twitter and started following me, so I looked up his profile and found it would be a pleasure to get to know more about him.

Actually, that’s the way Social Media works.  Think of it as a cocktail party!  Meet new people!

Facebook Drives US Social Network Ad
Spending Past $3 Billion in 2011

Are you on Facebook yet?

Join me, SedonaKathy, and others as we meet new people and make new friends.

Are you on Twitter yet?

Follow me by clicking on the Twitter bird.

Kathy Howe aka SedonaKathy

• how2arizona real estate LLC
• 928-274-4088  kathy@kathyhowe.com

Septic or Aerobic or Combo Waste System for Coconino County, AZ.

If you are building a house in Coconino County, Arizona, you will need to know what to expect as to the size of your alternative waste disposal system when no sewer hook-up is available.

While you are in the planning stage, use this worksheet for planning your rooms, fixtures, and lifestyle.

With this worksheet you can help plan your dream home and conserve our precious water.

Your contractor can assist you in the type of system that will work on your lot.

Your REALTOR(R) can assist you in checking out all the information with the County of Coconino and the City of Sedona.

Remember that this only relates to Coconino County, not Yavapai County.

Kathy Howe aka SedonaKathy

• how2arizona real estate LLC
• 450 Jordan Rd, “C”
• Sedona, AZ 86336
• 
  
• 928-274-4088
• kathy@kathyhowe.com