IDAHO REAL IDAHO REAL ESTATE ESTATE

COMMISSION COMMISSION CORE 2008CORE 2008

HOT TOPICSHOT TOPICS

Originally Presented by Originally Presented by

Doug Marfice, Esq.Doug Marfice, Esq.

Homeowner’s ExemptionHomeowner’s Exemption

• 2008 Exemption applies to 50% of the assessed value of a primary residence (including up to one acre of real property) or $100,938 - whichever is LESS.

ASSIGNED AGENCYASSIGNED AGENCY(Only applies to Limited Dual Agency)(Only applies to Limited Dual Agency)

• The Broker is the Limited Agent and cannot advocate on behalf of one client over the other, but is still responsible for ensuring the Assigned Agents fulfill their duties to their clients.

• Each Assigned Agent works with their individual client to pursue the client’s best interests, including negotiating price.

SLOPPY CONTRACTSSLOPPY CONTRACTS

“Any contract for the sale of land…must be complete, definite, and

certain in all its terms.”

Lettunich v. Key Bank, 141 Idaho 362 (2005)

FAIR HOUSING ON RESERVATIONS

“It shall be unlawful, because of race… or national origin to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or attempt to perpetuate, segregating housing patterns or to discourage or obstruct choices in a community, neighborhood, or development.”

Federal Regulation Title 24 § 100.70

SHORT SALE: A sale of secured real property that produces less money

than is owed to the lender.

• Must be lender approved

• Beware of Phantom Taxes

• Note the restrictions of the Mortgage Forgiveness Debt Relief Act of 2007

BANKRUPTCYBANKRUPTCY

When the lender is unwilling to entertain a proposed short sale, a

homeowner may have no alternative left but to seek protection under the

U.S. Bankruptcy Code.

THE ENDTHE END

Please complete your evaluation located at the back of your

binder and turn it in with your completed CORE exam.

Thank You!

Law Update 2008Law Update 2008

T.J. Angstman, Esq.T.J. Angstman, Esq.

Realty Antitrust Cases Realty Antitrust Cases Bafus et al. v. Aspen Realty, et al.Bafus et al. v. Aspen Realty, et al.

If competition was not If competition was not foreclosed, there is no liability foreclosed, there is no liability under the anti-trust laws (in under the anti-trust laws (in this set of facts)this set of facts)

Stay tuned for the results of Stay tuned for the results of the appeal…..the appeal…..

Contracts/Statute of FraudsContracts/Statute of Frauds Callies, et al. v. Callies, et al. v.

Charter Builders, Inc., et al.Charter Builders, Inc., et al.

Listing Agreements with inadequate Listing Agreements with inadequate legal descriptions are unenforceablelegal descriptions are unenforceable

Consult with an attorney before Consult with an attorney before trying to create a listing contract on trying to create a listing contract on property that is in the process of property that is in the process of being subdivided being subdivided

Bach v. MillerBach v. Miller

To recover financially for To recover financially for improvements to real property, they improvements to real property, they must have been made in good faith must have been made in good faith and with the appearance of titleand with the appearance of title

Fraud Fraud ≠ good faith≠ good faith

Chapin v. LindenChapin v. Linden

Statute of Frauds:Statute of Frauds: Agreements for Agreements for sale of real property are invalid sale of real property are invalid unless the agreements are in unless the agreements are in writing. writing. Material terms must be in writing and Material terms must be in writing and

agreed upon by all parties through a agreed upon by all parties through a meeting of the minds.meeting of the minds.

Real estate sale contracts must be Real estate sale contracts must be in writing!in writing!

Cannon v. PerryCannon v. Perry

Parole Evidence Rule:Parole Evidence Rule: when a contract has when a contract has been reduced to writing that the parties intend been reduced to writing that the parties intend to be a final statement of their agreement, to be a final statement of their agreement, evidence of any prior or contemporaneous evidence of any prior or contemporaneous agreements or understandings which relate to agreements or understandings which relate to the same subject matter is NOT admissible to the same subject matter is NOT admissible to vary, contradict, or enlarge the terms of the vary, contradict, or enlarge the terms of the written contract.written contract.

Make sure all contract terms are clear and Make sure all contract terms are clear and unambiguous (it may be advisable to consult unambiguous (it may be advisable to consult an attorney to assist with drafting)an attorney to assist with drafting)

Bajrektarevic v. Lighthouse Home Bajrektarevic v. Lighthouse Home Loans, Inc.Loans, Inc.

A valid contract requires a meeting of A valid contract requires a meeting of the minds as evidenced by proof of the minds as evidenced by proof of mutual intent to contract. mutual intent to contract.

It must be clear and certain in terms It must be clear and certain in terms and requirements so it can be and requirements so it can be determined what acts are to be determined what acts are to be performed and when performance is performed and when performance is complete.complete.

Make sure contract terms are clear and Make sure contract terms are clear and unambiguous!unambiguous!

Vanderford v. KnudsonVanderford v. Knudson

The Greifs were not liable to The Greifs were not liable to Vanderford because the Greifs were Vanderford because the Greifs were not considered the same borrower as not considered the same borrower as the LLCthe LLC

Know your parties when filling out Know your parties when filling out blanks on the contract forms (is the blanks on the contract forms (is the buyer or seller married, a corporation, buyer or seller married, a corporation, trust, etc.)trust, etc.)

Brewer v. Washington RSA No. 8 Brewer v. Washington RSA No. 8 Ltd. PartnershipLtd. Partnership

Co-tenant can only lease his own interest in a Co-tenant can only lease his own interest in a property unless remaining co-tenants consentproperty unless remaining co-tenants consent

contract may be voidablecontract may be voidable excluded co-tenants may seek fair rental value excluded co-tenants may seek fair rental value excluded co-tenants may seek partition of propertyexcluded co-tenants may seek partition of property

Documents must be signed by true legal owner.Documents must be signed by true legal owner.

Trust = TrusteeTrust = Trustee

Business Entity = Authorizes Business Entity = Authorizes RepresentativeRepresentative

Water RightsWater RightsJoyce Livestock Company v. Joyce Livestock Company v.

United States of AmericaUnited States of AmericaOne who has appropriated water and One who has appropriated water and beneficially used it has a right to the use beneficially used it has a right to the use of the water independent of his ownership of the water independent of his ownership of the land of the land

A water right does not constitute ownership of A water right does not constitute ownership of the water; it is simply a right to use the waterthe water; it is simply a right to use the water

Water rights pass with the land unless expressly Water rights pass with the land unless expressly noted otherwisenoted otherwise

Consider consulting an attorney on Consider consulting an attorney on conveyances of property when water rights are conveyances of property when water rights are involvedinvolved

Bankruptcy/Entrusted FundsBankruptcy/Entrusted FundsTicor Title Company v. StanionTicor Title Company v. Stanion

Title company mistakenly gave Title company mistakenly gave seller seller $36,438.62 that was supposed to go to the bankruptcy trustee.

Title company ended up paying twice

Be careful when disbursing entrusted funds

If someone is in bankruptcy, be extra careful!

Boundary by AgreementBoundary by AgreementGriffin v. AndersonGriffin v. Anderson

Boundary by agreement consists of Boundary by agreement consists of two elements:two elements:

An uncertain or disputed boundaryAn uncertain or disputed boundary An express or implied agreement An express or implied agreement

subsequently fixing the boundarysubsequently fixing the boundary

DECISION:DECISION: The fence served as a The fence served as a barrier first and foremost, not to barrier first and foremost, not to mark the boundary line mark the boundary line

Downey v. VavoldDowney v. Vavold

An agreement, either express or An agreement, either express or implied, must exist to establish a implied, must exist to establish a boundary by agreement.boundary by agreement.

Do not assume…. Do not assume…. FENCE FENCE ≠ BOUNDARY≠ BOUNDARY

CC&Rs & Condo DeclarationsCC&Rs & Condo DeclarationsBirdwood Subdivision Homeowners’ As-Birdwood Subdivision Homeowners’ As-sociation, Inc. v. Bulotti Construction Inc.sociation, Inc. v. Bulotti Construction Inc.

CCRs did not apply because they CCRs did not apply because they were not signed before selling the were not signed before selling the lotslots

Questions should be decided in Questions should be decided in favor of free use of the landfavor of free use of the land

A recorded map is not “set in A recorded map is not “set in stone”, and plots of land may be stone”, and plots of land may be changed or divided after the map is changed or divided after the map is createdcreated

Thompson v. EbbertThompson v. Ebbert

The garage lease was void because it The garage lease was void because it included only a portion of the unit and included only a portion of the unit and therefore violated the Declaration of therefore violated the Declaration of Condominium. Condominium.

The encumbrance created by the lease The encumbrance created by the lease was a continuing violation of the was a continuing violation of the Declaration, so the statute of Declaration, so the statute of limitations did not run out.limitations did not run out.

An Update

Originally Presented by Miguel Legarreta

Director of Public Policy

Ada County Association of REALTORS®

2008 Idaho Legislative

Session

Introduced by IREC and IAR

Changes:Shortens the period of time from 5 years to 3

to complete sales associate or broker prelicense education.

Retention period of 5 years for a real estate course provider to keep student attendance.

Clarifies the IREC’s responsibility to determine whether a continuing education course fits within the Commission’s approved topics.

Senate Bill 1251

IREC Education Bill

Introduced by IREC

Changes:Sets forth the Commission’s certification fees

for real estate instructors, providers and courses.

Date change to update the definition of the Real Estate Settlement Procedures Act, or RESPA.

Adds a definition of “business day”

Senate Bill 1257IREC Housekeeping Bill

Introduced by Representative Lynn Luker

Changes:Limit of two paroled sex offenders in a

residence Allow local jurisdictions more control over

locations of sex offender housing. Each jurisdiction will have allow for their own

conditional use permit.

House Bill 417 & 465

Transitional Housing in Idaho

Introduced by a real estate coalition

Changes:Allow local communities to plan and pay for

growthAdditional tool to build critical infrastructure

in our local economiesCreates independent taxing districtNoted on a Special Assessment Disclosure

Notice

House Bill 578Community Infrastructure Districts

Introduced by the Idaho Association of REALTORS®

Changes:Expand financing ability on a deed of trust

from 40 to 80 acres on a non-farm property.Allows additional financing capability on

larger land parcels

House Bill 491aDeeds of Trust

Introduced by the Idaho Association of REALTORS®

Changes: Makes clear sales prices are not confidential

client information.

Senate Bill 1401

Confidential Real Estate Information

Changes: This legislation provides that all contracts

entered into while a residential home is in the foreclosure process must be in writing and that consumers have a five day right of rescission.

A warning for consumers about foreclosure rescue scams is included in foreclosure notification papers and in any written contract.

Senate Bill 1431Foreclosures

Introduced by IACI and business coalition

Changes: Phase out personal property tax when State

revenue reaches 5%Maximum of $100,000 deduction.Phase out additional business tax.Still requires filing personal property tax

forms.

House Bill 599Personal Property Tax Exemption

In the 2008 legislature the real estate industry was affected by changed educational standards, disclosure of sales price information, location of transitional housing, new taxing districts, and personal property taxes.

Conclusion