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EALTOR NEWS VOL. 6 / ISSUE 6 JUNE 2015
EDUCATION ~ SERVICE ~ INTEGRITY
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27642 Cashford Circle ~ Wesley Chapel, FL 33544 www.cparfl.com ~ Phone 813-406-6081 ~ Fax 813-712-2865 ~ [email protected]
In this Issue:
CPAR Calendar 2
Letter from your President 3
CPAR-tee Social Mixer 4
AE Corner, What’s Due Next? 5
“Consent to Serve” Form 6
New CPAR Members 8
Business Partner Spotlight 15
Advertise in CPAR News 21
Business Partners 22-23
Join CPAR 24
Hurricane Season Info 11
NAR News 14
Ind. Contractor FAQ 17-20
www.facebook.com/CentralPascoRealtors
@CPARealtors
Are YOU the piece we’ve been missing?
The CPAR Nominating Committee is in the process of selecting members to serve as Officers and Directors in 2016. We are accepting “Consent to Serve” forms for President-Elect, Vice President, Treasurer, Secretary, and Directors. Members interested in being considered for nomination must submit a “Consent to Serve” form. The form can be found on page 6 of this newsletter, and the qualifications and form are also available on our website under the Leadership tab.
There are three director positions to be filled (two-year term). CPAR Realtor® members will be instructed to vote for up to four directors from the slate submitted. The three receiving the highest votes will be elected, and the next highest will become an alternate for any vacancies during the term.
If you would like a position description, please send an email to [email protected]. If you have any questions, please contact Nominating Committee Chair Toby Caroline at [email protected].
The forms must be submitted by July 30, 2014. The election of officers and directors will take place in September (details to follow).
PRESIDENT Lynn Mooney SouthShore Homes & Properties [email protected]
PRESIDENT-ELECT Dwight McDonald International Realty Plus-Tampa Bay [email protected]
VICE PRESIDENT Dennis Derbes Berkshire Hathaway Home Services [email protected]
SECRETARY Gerald Collings SouthShore Homes & Properties [email protected]
TREASURER Vicki Derbes Berkshire Hathaway Home Services [email protected]
PAST PRESIDENT Toby Caroline Sun ‘n Fun Realty [email protected]
DIRECTOR Patsy Peterman Seagrass Realty [email protected]
DIRECTOR Pete Rundel WestBay Real Estate [email protected]
DIRECTOR Louise Richardson Pro-Active Realty [email protected]
DIRECTOR David Chen [email protected]
BUSINESS PARTNER LIAISON Ruth Peeples First American Title Company [email protected]
DIRECTOR Robert Kane Powers Real Estate Services [email protected]
Save the Date
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July 8: CPAR General Membership Meeting (“Tribute to America”) 11:30 a.m.—1:00 p.m., Pebble Creek Golf Club July 22: CPAR New Member Orientation 1—4 p.m., CPAR Office
CPAR Board of Directors
June 2015
Father’s Day
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
Closing Changes Classes 10:00 a.m. & 1:00 p.m. Pebble Creek Golf Club
CPAR‐tee Mixer 5:30 —7:30 p.m. Primebar
RPR Training 9:00 a.m. & 11:00 a.m. EPAR Office
a word from the PREZ... "When someone walks away from you, it's not the end of your story. It's the end of their character's role in your story." -- Author Unknown
Have you started a new chapter in your story?
~ A very hard lesson learned... I had a very trusted IT person who has turned out to be extremely disappointing—my hard drive crashed (first time ever for me). No response to my repeated requests about scheduling an appointment for replacing the hard drive and restoring the information or referring me to another vendor. The software went away when the drive was replaced; the data is all backed up... however: 354,259 files = 293.7 GB. I should be on the mend after tomorrow when I
install my new Microsoft Office software.
The Florida Realtors® Tech Helpline (407-587-1450 on Monday—Friday from 9 a.m.—8 p.m. and on Saturday and Sunday from 9 a.m. - 5 p.m) has been wonderful. I highly recommend that you contact them if you have the least concern about your computer or just need some information or clarification. They are there to help you. Working off a tablet is definitely tedious. Lesson learned - do NOT put all your eggs in the same basket.
~ Windows 10 Arrives on July 29. Free for Windows 7 and Windows 8.1. The initial OS release will be limited to PCs and tablets.
~ I am very fascinated by drones—check out this video of the Cheval Country Club: Florida Aerial Drone Video of Cheval Golf Course at www.fastaerial.com.
~ We will be offering the required COE class with 3 hours credit - watch your inbox for details.
~ In July, we will be having a Military Tribute. Do you have any artifacts from the wars that you would be willing to share? Contact Vanessa Frost or Lynn Mooney.
~ Suggestion - we have now entered Hurricane Season. Be prepared just in case you have to evacuate. Put some essentials in a duffel bag that is sitting around—towels, cloths, liquid soap, Purell, plastic cups and flatware, paper towels, travel size toothpaste and toothbrush and other things that are extras that you would need. Then, all you have to do is grab your medications and bottled water and you are ready to evacuate at a moment's notice to find higher ground.
Until next month,
Lynn
Lynn Mooney
From your President
3
EliteElite My Florida Regional ~ Merri Jo Cowen
Platinum Platinum
Embrace Home Loans ~ Tyler Cain and Scott Slone First American Title ~ Ruth Peeples
Gold Gold
IERNA’s Heating & Cooling ~ Julie Rinaldi National Property Inspections ~ Lynne Tonte
Sandon Mortgage ~ Rick Sandon Security National Mortgage ~ Ray Williams
WCR Tampa Chapter ~ April Gayle Gausman
Thank you to our 2015 Sponsors
SilverSilver Eagle Mortgage ~ Karen Calhoun
Herbert H Landy Insurance ~ Joe Flynn Hillsborough Title ~ Joellyn Robles
Market Prime Mortgage ~ John Farris Mason Title ~ Mary Turner
Peeples Maintenance Repairs ~ Ron Peeples Prime Protection ~ Joed Hassani
Rainbow International Restoration ~ Steve Dumas Tampa Home Inspection ~ Bobb Courtman
Two Men and a Truck ~ Eugenia Parlow
4
Time for a Summer CPAR-tee!
Sponsors: First American Title—Ruth Peeples
Hallmark Title Agency—Rebecca Walker
Hengesbach & Hengesbach, P.A.—Seton Hengesbach
Home Inspector Professor—Paul Phillips
Homeowners Mortgage—George Cooper
IPA Family—Daniel Borrero
Mason Title—Mary Turner
National Property Inspections—Lynne Tonte
Operation Raven Funding—Bill Doyle
Sun ‘n Fun Realty—Toby Caroline
Tampa Home Inspection—Bobb Courtman
Thurow Financial Services—Christopher Thurow
Prime Bar Shops at Wiregrass
2001 Piazza Ave., Wesley Chapel
Realtor® and Business Partner Mixer
Wednesday, June 3 5:30—7:30 p.m.
A Note from My Florida Regional MLS:
Don’t miss this year’s Florida Realtors® Convention & Trade Expo!
The theme is Celebration, and Florida Realtors® has a lot of fun things planned. This year’s convention is August 19-23 at the Rosen Shingle Creek Hotel in Orlando. The Trade Expo will be open on August 20-21.
This year’s Expo is Free! Just pre-register online here.
Check out all the reasons you should sign up for the full convention by visiting http://convention.floridarealtors.org/, where you can view the schedule, speakers, Expo exhibitors, events, and more. You can also click on the video to the right to hear it directly from Florida Realtors® President Andrew Barbar (video will open in a new window).
If you need to contact your AE, email me at [email protected] or call me at 813-406-6081. General Office Hours are Monday—Friday from 10 a.m.—2 p.m.
Louise Richardson
Vanessa Frost
AE Corner
November 30, 2015
Realtor® Membership Dues
Primary CPAR $100
Florida Realtors® $126
National Assoc. of Realtors® $155
Secondary CPAR $100
What’s Due Next?
September 2015
Supra Active Key Renewals
Active Key Dues 2015 dues were $173.40; 2016 dues TBA
Optional Insurance $25
CPAR Business Partner Dues
Primary $125
$35 Secondary
Central Pasco Association of REALTORS® President-Elect Vice President Secretary Officers and Directors Consent to Serve Treasurer Director Name: No. of Years Licensed: Firm Name: Ph: Business Address: Home Address: Ph: Website Address: E Mail: Residential Commercial Property Management Business Biographical Data___________________________________ Date of Birth: Month Day Educational/Designations: =========================================================================== Local Board Involvement: State Association Involvement: National Association Involvement: ===========================================================================Briefly describe your other activities with other trade associations, professional organizations, civic, community and other accomplishments. Are you aware of the responsibilities and time required to serve as an officer or director? Yes No Are you willing to complete annual Professional Standards certification? Yes No Are you willing to make this commitment? Yes No Do you contribute to RPAC? Yes No Are you willing to attend FR and NAR meetings to represent the Board? Yes No Are you willing to pay your own way to these functions if funds are not available? Yes No If you are elected to serve, what are your goals for the Association? I agree that any and all of the above information may be released in the Association’s publications or to the local media. Signed: Date: To expand on any information above, plus attach additional pages.
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9:00 AM to 10:30 AM - RPR Advanced: Hit the Bull's-eye on Perfect Pricing with RPR
You’ve got the basics – now dig deep and learn the tips and tricks to leverage RPR®’s powerful analysis tools for your clients. Take the AVM or RVM® for a property and apply your local market intelligence to refine this starting point with corrections to the facts, addition and projection of improvement values, and comparison refinement tools. Create quick and easy CMA or an in-depth Sales Comparison Analysis, and lead clients through the intricacies of market realities with easy-to-understand facts and graphics. And we’ll use RPR’s Investment Analysis Tool to create an analysis for any type of client, whether they are buying their first home to live in, an investor looking to ‘flip’ the property, or someone looking for a rental investment.
11:00 AM to 12:00 PM - RPR Mobile - Big Data, Powerful Reports: Anytime, Anywhere
RPR Mobile delivers RPR’s vast repository of property information and tools anytime, anyplace, to any iPhone or Android phone. Use your phone’s location to instantly view any property nearby, or search for properties to find listing, sales, valuation, assessment, deed, foreclosure, school, photos, maps, and market trend information…create, customize, view, save, and send RPR reports with your added photos, audio, and text notes. Download today at the App Store or Google Play, and join us for this comprehensive review of all the powerful features of this great REALTOR-only tool!
Free Classes for CPAR & EPAR members!
Thursday, June 25 9:00 am - 10:30 am: RPR Advanced 11:00 am - 12:00 pm: RPR Mobile
East Pasco Association of REALTORS® Office 5026 7th Street, Zephyrhills, FL 33542
Phone: (813) 783-3794
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North American Title Company Kimberly Martin
Realtors®
Business Partners
Welcome New CPAR Members (April 2015)
Berkshire Hathaway ~ Wesley Chapel Lois Armour Joyce Luloff
HomeLife Tropical Realty Lars Kier, Broker
Keller Williams ~ New Tampa Ronald Burris
Gregory Dodson
Monte Real Estate Linda Martin
NewHomePrograms.com Juliette Leeseman
Powers Real Estate Todd Powers, Broker
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GET IN THE KNOWTIL A /RESPA INTEGRATED DISCLOSURES
ALL - 02/2015
Our industry is facing significant changes this summer. Will you be ready?
Attend this class for important information about:
- Changes to the Loan and Settlement Disclosure forms and processes
- Why these changes are happening
- Who will issue the new disclosure forms
- Potential penalties
- Impact on real estate professionals
We will also discuss the new forms (Loan Estimate and Closing Disclosure) and important timelines that will affect your transactions.
Are You Ready for August 1, 2015?
DATE, TIME & LOCATION
Class Information
INSTRUCTOR
RSVP
June 17th / times are 10:00 and 1:00 ( class is about 45 minutes long with two times to pick from )
Pebble Creek - Mulligans
10550 Regents Park Drive Tampa, Fl.
Robins SimmonsVP of Sales with First American Title
Vanessa Frost
by email at [email protected]
RUTH PEEPLESACCOUNT EXECUTIVE13901 Carrollwood Village RunTampa, FL 33618
MOBILE [email protected]/fl
This is one class you will not want to miss, hope to see everyone there and we have some great handouts to keep as a reference
11
TALLAHASSEE, Fla. – May 29, 2015 – Florida is due for a hurricane. Overdue, in fact.
The last storm to hit Florida, Hurricane Wilma, came ashore Oct. 24, 2005, and Floridians with homeowners' insurance policies are still paying, at least for one more month.
Florida officials believe they are as ready as possible, in terms of storm preparation and the financial strength of the insurance industry, for the next hurricane that crashes into any part of the Sunshine State's shoreline.
Forecast tracking has improved, and even the use of social media – the state directs people to its "Get a Plan!" website – has given the state another means to communicate with the public pre- and post-storm.
But with the 2015 hurricane season starting Monday, officials say the question remains how well-prepared individual Floridians will be when a storm packing sustained winds of 74 mph or greater finds Florida.
"I think we're ready. We do a lot of work March through May to get ready for June 1," said Florida Division of Emergency Management Director Bryan Koon after joining President Barack Obama in a pre-storm season briefing Thursday at the National Hurricane Center in Miami.
The state agency recently ran a pair of drills, testing officials and public and private agencies to assess how they would respond if different parts of the state were hit by storms. In the most-recent scenario, officials portrayed the Panhandle getting hit by a hurricane and a week later a second storm crossing South Florida, following the path of the killer 1928 hurricane that crossed Lake Okeechobee.
"Those emergency managers, I think they are (ready)," Koon said. "And businesses and non-governmental charitable organizations, I'm confident in all of them. Now it's a matter of making sure that people understand Florida is a great place to live, but they have to take the appropriate precautions so they can take care of themselves so we can take care of those less fortunate."
How well Floridians heed Koon won't be known until a storm makes landfall.
Nine hurricane seasons have come and gone for Florida since Wilma. There have also been some tropical storms and heavy rain events.
But otherwise, Florida's population has grown the past decade by more than 2 million, with a sizable chunk of the increase coming in coastal areas.
On Wednesday, the National Oceanic and Atmospheric Administration (NOAA) predicted a below-normal Atlantic hurricane season, with between six to 11 tropical storms and three to six growing into hurricanes. The Weather Channel's Professional Division has forecast nine named storms, with five reaching hurricane strength.
NOAA Administrator Kathryn Sullivan, in a release from the White House on Thursday, referred to the 1992 hurricane season that was punctuated by the monstrous Hurricane Andrew, which swept across South Florida.
"A below-normal season doesn't mean we're off the hook," Sullivan said in the release. "As we've seen be-fore, below-normal seasons can still produce catastrophic impacts to communities."
Sam Miller, executive vice president of the Florida Insurance Council, said he has a "bad feeling" about this year.
"We've had some luck," Miller said. "We had luck with (Hurricane) Katrina, which brushed the Keys. But people who look at this say this just can't continue."
Still, Miller is in the camp viewing Florida, which skirted through the recession with relatively little money behind the state's Hurricane Catastrophe Fund, as being financially prepared to respond to a massive storm.
The "Cat Fund," created after Hurricane Andrew to provide backup coverage to property insurers if major storms hit the state, has about $17 billion available.
Cont. on page 12
Ready or not, hurricane season arrives June 1
12
Cont. from page 11
Miller said he is less concerned about insurance companies that have been created since Wilma, but he does have some worries about the sharpness of adjusters and others who for years haven't had to respond to a disaster.
"I think there is a concern maybe about rust in the system," Miller said. "Hopefully we're ready to handle whatever we face. There is a nightmare hurricane out there that will hit Miami, and we'll do the best we can."
Also count Jay Neal, director of the advocacy group Florida Association for Insurance Reform, among those expressing more concern about the response of Floridians than the private insurance industry.
"This is one area where the regulatory structure and ratings agency have done an excellent job," Neal said. Neal noted that every Florida company rated by Ohio-based Demotech, Inc., which provides financial-strength ratings for insurance companies, has a reinsurance program in place to handle a 1-in-100-year storm, a second storm deemed a 1-in-50-year event, coverage for a third storm and the ability to buy additional coverage for a fourth storm.
"These standards have been significantly increased since 2010 and cover a series of catastrophic events so devastating that they have never before occurred in recorded history," Neal said.
A 1-in-100-year storm is an event that has 1 percent chance of occurring in any given year. A 1-in-50-year storm has a 2 percent change of happening.
As the six-month hurricane season starts, the state-backed Citizens Property Insurance Corp. has a $7.5 billion surplus, the highest in its history, and $3.9 billion in reinsurance coverage, which is insurance for insurers.
"We expect to be in the financial position to handle a 1-in-100 year storm without having to levy any assessments on Florida policies," said Citizens spokesman Michael Peltier. "That's a pretty big change from the $11.6 billion in assessments Florida policyholders faced just four years ago."
The last assessment imposed, a 1 percent surcharge on most homeowners' policies that ends July 1, was enacted to recoup $887 million of the roughly $1.7 billion deficit created by Hurricane Wilma.
The lack of storms has been a key factor in the improved financial status of Citizens, along with a massive depopulation effort that since 2012 has driven nearly 1 million policies into the private market. As of April 30, Citizens had 591,883 policies.
Source: News Service of Florida, Jim Turner
15310 Amberly DriveSuite 105Tampa, FL 33647
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and electronically sign your loan application documents.• We are a direct FANNIE MAE, FREDDIE MAC, FHA and VA
lender which means we never lose control of your file. • We process, underwrite, fund and close all loans IN-HOUSE.• With Embraces’ closing department you can expect to close in
half the time of most banks.• We will work to guide you through the entire process.
We’re different from everyone else. And, quite frankly, we think that’s a good thing. Experience tells us that you will think so too. Let us put our experience to work for you today.
embrace a winning team
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Call us today for more information!
apply at embracehomeloans.com/scott-slone or embracehomeloans.com/tyler-cain
Scott Slone and Tyler CainLoan Officers / NMLS# 419375, NMLS# 118156
ph 813.295.4660ph [email protected] / [email protected]
14
Read the full decision: Anton v. Mr. C’s Lake Orion, L.L.C.
A Michigan court has held that a commercial real estate broker (“Broker”) may be held liable
for slander of title for violations of the state’s Commercial Real Estate Broker’s Lien Act
(“CREBLA”).
Broker entered into an exclusive listing agreement with the owner (“Owner”) of a commercial property. Pursuant
to the agreement, Broker was to receive a commission from the sale or any lease price, depending on various
factors. Broker introduced a potential buyer (“Buyer”) to Owner. After Broker made the introduction, Buyer
made a purchase offer to Owner, and Buyer and Owner secretly negotiated to shut the Broker out of the deal in
order to avoid paying the agreed-upon commission. Prior to completing the sale, however, Owner defaulted on
its mortgage, and its lender secured the appointment of a receiver (“Receiver”) to continue the sale of the prop-
erty to Buyer. Although Receiver offered to settle the commission dispute, the parties were unable to come to a
resolution, and Broker recorded a broker’s lien on the property in the amount of $60,000.
Michigan’s CREBLA permits commercial brokers to record liens against properties if the broker is entitled to a
commission under a written agreement. CREBLA also provides that a broker must release the lien if “the par-
ties to the transaction” create an escrow account, and that the party or parties owing the commission fund the
account with an amount sufficient to satisfy the lien.
After Broker recorded the lien, Receiver and Buyer created an escrow account and funded it with $75,000 to
satisfy Broker’s claim – an amount $15,000 greater than the recorded broker’s lien. At some point thereafter,
Broker, apparently unaware of the creation of the escrow account, filed suit against Buyer and Buyer’s mortgage
lender. After being served with the lawsuit, Buyer notified Broker of the escrow account, and requested removal
of the lien and dismissal of the lawsuit. Broker refused both requests, claiming that neither Receiver nor Buyer
had notified Broker of the escrow account until after the lawsuit had been filed, and that Buyer had not been
forthcoming about the ultimate purchase price of the property. Among other rationales for refusing to remove
the lien, Broker maintained that it was “a party to the transaction” and therefore should have been included in
the establishment of the escrow account.
Buyer countersued, alleging slander of title on the purchased property and requesting attorney’s fees. The cir-
cuit court ruled in favor of Buyer on the countersuit, and also summarily dismissed Broker’s claims against Buy-
er and its lender. In so ruling, the court held that after Buyer had deposited funds in the escrow account suffi-
cient to cover the commission dispute, Broker’s refusal to release the loan was a violation of CREBLA. The
court found Buyer’s arguments to the contrary unpersuasive, and held that Broker was not “a party” to the sale
of the property, and therefore had no say in the establishment of the escrow account or the amount deposited
thereunder. The court also found that Broker had committed “slander of title” – defined under Michigan law as
the “malicious publication of false statements that disparage a plaintiff’s right in property.” The court held that
Broker’s refusal to release the lien after being told of the escrow account demonstrated sufficient malice to qual-
ify as slander of title.
The appellate court affirmed on all counts, and awarded Buyer attorney’s fees as permitted by the state slander
of title law.
Anton v. Mr. C’s, Nos. 317935, 321827, 2015 WL 1085029 (Mich. Ct. App. March 12, 2015). [This is a citation to a Westlaw document. Westlaw is a subscription, online legal research service. If an official reporter citation should become available for this case, the citation will be updated to reflect this information].
Broker Liable for Slander of Title
Upcoming Events
Tuesday June 2nd 4pm
How to Craft Your Irresistible Introduction The most important part of networking is your introduction!
Teleseminar at 4pm - register at
www.lorrainelane.com/events
Wednesday June 3rd 1pm - 3:30pm
Lutz Guv’na FUN-Raiser
GFWC Lutz-Land O’ Lakes Woman’s Club will host a
Bing Blast at Land O’ Lakes Winery, 3901 Land O’ Lakes
Blvd (just North of RaceTrac) $10 donation.
More info call Sharon at (813) 996-4909
Wednesday June 3rd 5pm - 7pm
Ribbon Cutting Sliding Door Roller Replacement
19121 US Hwy 41 North, Lutz, FL 33549
More info call (813) 802 6111 www.FixMySlidingDoors.com
SAVE THE DATE & REGISTER TODAY!
Tuesday June 9th
Membership Meeting Networking 11:30 AM - Meeting 12:00 - 1:30 PM
Cost $25 After 6/5/15 - Register at:
http://centralpascochamber.chambermaster.com/events/
details/2015-membership-meeting-lunch-june-1920
Wednesday June 10th 5:30 - 7:30 PM
MIXER with Hispanic Business Leaders Wesley Chapel Nissan
28519 SR 54, Wesley Chapel, FL 33544
Tuesday June 16th 6:30pm - 8pm RSVP by 6/12/15
Women & Money, a Free Workshop Jackie Bennett & DMG Financial LLC
The Vine Restaurant & Wine Bar, 17667 Dale Mabry Hwy, Lutz, 33548 -
RSVP Today! (813) 996 6100 [email protected]
Tuesday June 23rd 8am - 2:30pm RSVP By 6/12/15
United Way Summit - ALICE Report PHSC Porter Campus Conference Center
2727 Mansfield Blvd, Wesley Chapel, 33543
https://www.surveymonkey.com/r/ALICErsvp or call for
more info (727) 845-3030
June 1st, 2015
2810 Land O’ Lakes Blvd. Land O’ Lakes, FL 34639
(813) 909-2722 Office (813) 909-0827 Fax
www.CentralPascoChamber.com
https://www.facebook.com/pages/The-Central-Pasco-Chamber-of-Commerce/169655723123770?fref=ts
RIBBON CUTTING
Wednesday June 3rd
5-7pm Ribbon Cutting 5:30 or 6:30pm
FREE! Food beverages and fun!
Come support a New Member
19121 U.S. Hwy 41 North
Lutz, FL 33549
Membership Meeting
REGISTER TODAY!
Tuesday June 9th
Networking 11:30 AM - Meeting 12:00 - 1:30
PM
Cost $25 After 6/5/15
Register at: http://centralpascochamber.chambermaster.com/events/
details/2015-membership-meeting-lunch-june-1920
INDEPENDENT CONTRACTOR STATUS FREQUENTLY ASKED QUESTIONS LEGAL AFFAIRS DEPARTMENT
1. What is the difference between an independent contractor and an employee? Employers have a significant degree of control over their employees, and are able to direct when, how, and where employees accomplish their tasks and responsibilities. Employers also often provide the necessary “tools of the trade” to their employees. In contrast, an independent contractor generally can determine when, how and where to perform their work, and is responsible for any necessary tools or equipment necessary to provide the services. For legal purposes, the key distinction between an employee and an independent contractor is often determined by the amount of control a business exerts over the worker. The more control a business exerts over the worker, the greater the likelihood the worker will be deemed an employee.
2. Are brokers required to classify their salespeople as independent contractors? No. Brokers can classify their real estate salespeople as either employees or as independent contractors.
3. What laws and regulations apply to a brokerage’s classification of its salespeople?
Worker classification laws at the federal and state levels as well as state real estate license laws will apply to a brokerage’s classification of its salespeople. At the federal level, the Internal Revenue Service has carved out a special statutory non-employee status for real estate professionals, qualifying them as independent contractors when all of the following requirements are met:
a. The individual must be a licensed real estate professional; b. Substantially all of their payments must be directly related to sales or other
output, rather than the number of hours worked; and c. Their services must be performed under a written contract providing that they
will not be treated as employees for federal tax purposes. State statutes for worker classification and real estate licenses vary in regards to determining proper classification of real estate licensees. Some states explicitly recognize real estate licensees as independent contractors when certain conditions are met, and other states are silent as to real estate licensees so the courts must apply the applicable test for determining proper classification. This is why it is vital for real estate professionals to know the laws that pertain to worker classification in their states.
INDEPENDENT CONTRACTOR STATUS FREQUENTLY ASKED QUESTIONS LEGAL AFFAIRS DEPARTMENT
4. Is an independent contractor written agreement sufficient to classify workers as independent contractors? Having an independent contractor agreement is a very important element of establishing an independent contractor relationship with a real estate salesperson, but the existence of an agreement is not enough to avoid misclassification. Courts and regulatory agencies will look to the reality of the relationship, how the parties interacted, and how much control a broker exerts over the real estate salesperson in order to determine the true nature of the relationship between the parties.
5. What types of activities should brokers avoid in order to properly classify
salespeople as independent contractors? Under many state, and federal, laws, making certain acts “mandatory” may be considered an indication of employer-like control over the worker. One of the hallmarks of an independent contractor relationship is that the independent contractor has the ability to direct and control where, when and how they perform their work. In order to establish an independent contractor relationship, the following is a list of the types of activities that should be avoided:
• Requiring the worker perform the services during set work hours. • Requiring the worker perform the services at a specific location. • Making attendance at staff meetings mandatory. • Providing training to the worker. • Supplying tools and materials to the worker.
6. Since worker classification is often dependent on the level of control an employer
exerts over a worker, does this mean that brokers should not supervise their independent contractor salespeople? No. In fact, according to real estate licensing laws brokers must maintain a certain amount of supervision over their salespeople. Brokers must therefore make sure that they are balancing their state real estate license laws’ supervision requirements with the applicable requirements in state and federal worker classification laws.
7. Do federal income taxes have to be withheld from a real estate professional’s
earnings? No, if the independent contractor meets the three elements of the IRS’s carve out. The IRS recognizes the unique nature of the real estate industry and created a statutory
INDEPENDENT CONTRACTOR STATUS FREQUENTLY ASKED QUESTIONS LEGAL AFFAIRS DEPARTMENT
non-employee status for real estate professionals, provided three elements are met: 1) the individual is a licensed real estate professional; 2) substantially all of their payments be directly related to sales or other output, rather than number of hours worked; and 3) their services are performed under a written contract providing that they will not be treated as employees for federal tax purposes. If these three elements are met, no federal income taxes need to be withheld from the real estate professional's earnings.
8. Does qualifying as a statutory independent contractor under IRS rules also mean
that state income taxes do not have to be withheld from a real estate professional's earnings? No, qualifying as a statutory independent contractor under IRS rules applies only to federal income taxes. The question of whether state income taxes must be withheld from a real estate professional's earnings is a question of state law. Brokers should check the applicable state law where they operate.
9. Can a broker provide its independent contractors with benefits such as health
insurance and 401K participation? The provision of employee-type benefits, such as health insurance, vacation pay and 401k participation, can be factors pointing to an employer-employee relationship, rather than that of an independent contractor. The provision of these types of benefits may compromise the argument that the relationship with the worker is that of an independent contractor.
10. What happens if a broker misclassifies an employee as an independent contractor?
Improper classification of workers can cause businesses a number of tax and other legal problems. At the federal level, the IRS may levy unpaid payroll taxes against a business it believes is misclassifying its workers, as well as interest and other penalties. In addition, the United States Department of Labor, the National Labor Relations Board, and the Equal Employment Opportunity Agency have an interest in a business’s classification of its workers, and may pursue penalties and legal action against businesses believed to be engaging in worker misclassification. At the state level, businesses may face fines and penalties for violations of state workers’ compensation laws, tax laws, and state unemployment compensation laws. Improper classification can also expose businesses to private causes of action and costly litigation.
11. May a broker require independent contractor real estate salespeople to maintain membership with a local association of REALTORS®?
A broker may require salespeople to be members of the REALTORS® association, as it indicates to the broker the sales agents’ commitment to the real estate profession and to
INDEPENDENT CONTRACTOR STATUS FREQUENTLY ASKED QUESTIONS LEGAL AFFAIRS DEPARTMENT
high ethical standards of practice. REALTOR® membership is a criterion that a broker may voluntarily choose to require of independent contractors. The payment of any dues to belong to the REALTOR® association is simply a cost of obtaining the “credentials” necessary to become associated with a broker who deems this criterion important.
12. What resources are available to help further guide real estate professionals on this topic? A number of resources on this topic are available on www.REALTOR.org’s Independent Contractor resources page: http://www.realtor.org/topics/independent-contractor. These resources include:
• “Ten Ways to Successfully Manage Your Independent Contractor Relationships” • Legal Affairs video on recent worker classification litigation • Chart detailing various state labor laws approach to classifying real estate
professionals • Key Provisions for Independent Contractor Agreements
Outside resources include:
• The IRS website’s guide to worker classification • U.S. Department of Labor – Wage and Hour Division guidance on worker
classification • Your state’s Department of Labor website • Your state’s real estate licensing authority’s website.
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Contact Vanessa at 813-406-6081 or [email protected] to get started. Artwork can be changed monthly and must be submitted by the 15th of each month.
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Joseph Flynn 352‐350‐2477
Law Offices of Mercedes Gonzalez Hale
Mercedes Gonzalez Hale 813‐973‐8900
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READY FOR A CHANGE? Contact Dwight McDonald, CPAR President-Elect, for answers
to all your CPAR and membership-related questions. 813-629-6954 ~ [email protected]
24
Central Pasco Association of Realtors® 27642 Cashford Circle, Ste. 110 ~ Wesley Chapel, FL 33544
www.cparfl.com ~ Phone 813-406-6081 ~ Fax 813-712-2865 ~ [email protected]
Membership Dues & Fees CPAR 1 GTAR 2 EPAR 3 PRO 4 WPBOR 5
Local Dues (Primary Membership) $75.00 $120.00 $115.00 $168.00 $170.00
Florida Realtors® Dues & Issues Advocacy $126.00 $126.00 $126.00 $126.00 $126.00
NAR Dues & Public Awareness Campaign Assessment
$155.00 $155.00 $155.00 $155.00 $155.00
Total Annual Dues $356.00 $401.00 $396.00 $449.00 $451.00
Application Fee (Local) $75.00 $195.00 $110.00 $150.00 $250.00
Application Fee (Florida Realtors®) $30.00 $30.00 $30.00 $30.00 $30.00
Business Partner/Affiliate Dues (Primary Membership)
$90.00 $195.00 $150.00 $250.00 $250.00
1 Information obtained from CPAR 10/1/14 2 Information obtained from GTAR 10/14/14 3 Information obtained from EPAR 10/28/14
4 Information obtained from PRO 10/14/14 5 Information obtained from WPBOR 10/14/14
Did you know? NAR allows Local Board of Choice… Regardless of office location, Realtors® may join any local real estate association they choose.
~ My Florida Regional MLS membership
~ Supra Active Keys, eKeys, and Lockboxes
~ Professional Development Education and CE credits
~ Office convenient to North Tampa, New Tampa,
~ New Member Orientation
~ Social events for fun and networking
~ Public Advocacy
~ Community Service opportunities
CPAR offers the same benefits as other local real estate associations:
Wesley Chapel, and Land O’Lakes
Attention Brokers!
~ Fast start for new agents ~ Lower startup costs ~ Orientation for new agents ~ Low primary and secondary
dues for transferring brokers
Compare and Save! CLICK HERE
for more information and applications on
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