Virginia 8 Hour Broker Seminar

BROKER CE 2015

TheAgentTrainer.com | @MattRathbun

Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SFR, SRS, SRES

Agency

PowerOfRelationships

Matthew Rathbun, BrokerABR/M, AHWD, CDPE, CRB, CRS, e-PRO, GREEN, GRI, SFR, SRS

Agency Relationship and Duties

What You’re In For Today

Commission

Personal Service Agreements

Risk Management

Agent Relationships and

Duties

Agency is A Term of Art

Great, let’s find out how we got here...

So, You’ve Decided To Get

Married!

...and how we keep this relationship safe

Client

What YOU Say and Do Can Establishes Who THEY Are

Customer Independent Contractor

Dual Agency

Designated Agency

Non-Client

(The Rest Is Paperwork)

HONESTY

As in all relationships, we have some stuff we have to do...

OBEDIENCELOYALTY

CONFIDENTIALITY

DISCLOSUREACCOUNTING

REASONABLE CARE

Personal Service

Agreements

[Yes, you MUST, SHALL, WILL,

have a written agreement before showing property, giving advice or listing a property.]

Agency disclosure MUST be made in writing prior to substantial discussions about a specific property or service.

(DPOR memo August 2012)

• Listing Agreements • Buyer Agreements • Landlord Agreements • Tenant Representation • Property Management • Independent Contractor

What Has To Be In Writing?

Implied Agency

Genesis

Expressed Agency

(Tamed)

What Type of Agreement Do You Have?

(Wild)Exclusive Non-Exclusive

Benefits Of The AgreementOutlines Mutual

Responsibility Defines Loyalty

Ensures You’ve Disclosed All That You

Must

Shows Evidence of

Agreement and Disclosures

Required By Law

Limits Role

The Forms

Buyer Agency Agreements

So, When Does That Get Turned In?

A licensee may act as a dual representative only with the written consent of all clients to the transaction. Such written consent and disclosure of the brokerage relationship as required by this article shall be presumed to have been given as against any client who signs a disclosure as provided in this section.

Dual and Designated Agency Tolerated

54.1-2139

5 Required Elements

Virginia’s Dual Agency Disclosure

• Licensee may have already provided guidance to one of the two parties.

• Licensee cannot provide advice (including recommended repairs) to the buyer, or advice about suitability

• Licensee cannot provide advice on disputes

• Client’s inexperience is not a factor

• Either party may engage another Realtor after ratification

• Revocation • Renunciation • Death of Principal / Agent • Insanity • Bankruptcy • Illegal • Destruction • Expiration

Terminating Relationships

Commissions

• MLS Dictates • MRIS Article IV, Section 15 • Code of Ethics Considerations • Arbitration • Who Do You Work For?

Negotiating The Commission

Standard of Practice 3-2 revised

Any change in compensation offered for cooperative services must be communicated to

the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the

property. (Amended 1/10)

Changing the Commission

Procuring Cause

Unbroken Chain of Events resulting in a closed

transaction.

Risk Management

Standard of Practice 16-20 revised

REALTORS®, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude REALTORS® (principals) from establ i shing agreements with their associated licensees governing assignability of exclusive agreements. (Amended 1/10)

Taking The Client Along

• Imputed Knowledge

• Imputed Notice

• Material Facts Disclosure

• Latent Facts Disclosure

Conveying What You Know

• Who Has Coverage Under E and O?

• Who Has Agency Relationship?

• What Is The Agent’s Limitations?

• Who Get’s Paid?

Company Transfers

• False information provided by Seller

• Revealing information required by law

• Misrepresentation made by sub-agent (unless broker / licensee should have known)

• Negligence or gross negligence or intentional acts of the Assisting Broker / Salesperson

Limit To Liability

Facebook.com/mattrathbun

@mattrathbun

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Real EstateTechnology


Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS

TheAgentTrainer. com@MattRathbun

Husband and Father

Broker

Thinks He’s Funnier Than He Is…

Disrupter

Story Teller

TheAgentTrainer .com/TechRiskResources | SlideDeck | Videos | Tools

Today’sJourneyTrends

Tools

Techniques

Troubles

Share Your IdeasAs We Go!

It is not the strongest of the species that survive, not the most intelligent, but the one who i s most response to CHANGE.

- Charles Darwin

Trends

YouTube MomentMicrosoft Vision

Drones

3D House Models

Predictive Client Models

Social Media

The Mobile Client

The Digital House

The Surveillance Game

Big Data

Virtual Staging

Green | Paperless

The Cloud

Agent Ratings

Aggregators

Tools

Evernote .com

EasyEmerge .com

HouseLogic .com

NARRPR. com

Amitree. com

closeit.mris. com

Updater. com

Ribbet. com

Canva. com

GetPocket .com

Trello .com

Hemingwayapp. com

HomeTrackr. com

Mobile

Scannable App

HomeSnap

Coldwell Banker CBx

WordSwag

HomeKeepr

Listings Plus

CrimeMapping

BufferApp

TheTileApp

WatchOverMeApp

RealSafeAgent

PhotoMath

Troubles

HighJacked Listings

Cyber Stalking

BadBehavior•Centralized Showing and Lockbox

• Agent Impersonations Online

• Access of Client Databases

• Shared Lockbox Access

• Shared MLS Entry

• Computer Threats • (By and Against Agents)

• Defamation

• Unlicensed Practice of Law

• Breach of Confidentiality of Clients

• Copyright Violations

• Untrue Statements

• Trademark Considerations

• Necessity for Required Disclosures

BadBehavior

LegalAdvice

Techniques

Google. com

GoogleAlerts

www.Google. com/Alerts

PolicyC onsiderations• Instruct agents and those posting to use caution when posting;

• Realize that blogs can be viewed as an advertisement and follow all applicable rules; and

• Don’t select and edit messages – it could subject you to greater liability because you are taking a more active role in the publishing the contents.

PolicyC onsiderations• Further steps you can take to reduce your liability:

• Post only material you own, you have permission to use, or that is with the scope of fair use (generally includes review, news reporting, teaching, or scholarly research);

• Remove infringing content immediately;

• Have a well-crafted Terms of Use


@mattrathbun

[email protected]

YouTube.com/MattRathbun1

ThankYou

Risk Management


Matthew Rathbun ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS

TheAgentTrainer.com@MattRathbun

Husband and Father

Broker

Thinks He’s Funnier Than He Is…

He’s Been Around

Story Teller

What Are You Facing Today?

Before you attempt to rock someone else’s house, make sure you know the condition of

Your Own

Be Theof TheSourceSource

www.Varealtor .com

• Starting A New Firm • Risk Management Policies • Do’s and Don’ts • Fair Housing Policy • Do Not Call Policy • Social Media Policy • DPOR Guidelines • Policy Manual Template

ConsumerFinance.govElitescoop. com/cfpb2015

Powers

• Authority to Create Laws • Subpoena Powers • Power To Author Rules • Create / Modify Forms • Identify Unfair Practices • Arbitrate • Enforcement Authority

Background

•Dodd-Frank Act • 1,188 Pages •Merges RESPA and TILA

Goals• Easier-to-use Mortgage Disclosure Forms • Improve Consumer Understanding • Aid Comparison Shopping • Prevent Surprises at Closing Table

The Loan Estimate Provided to consumers within three business days after submission of loan application

Replaces early TIL statement and GFE

Provides summary of key loan terms and estimates of loan and closing costs

Idea to promote comparison shopping

The Closing Disclosure Received by consumers three business days before consummation

Replaces final TIL statement and HUD-1 Settlement Statement

Provides detailed accounting of transactions

New Forms

New Forms HUD-1 = Closing Disclosure GFE = Loan Estimate

Loan Estimate C losing DisclosureOld GFE Old HUD-1

3 days from application 3 days prior to closing

7 days prior to closing(waiver for bona-fide emergency)

Revision Required

Enforcement

$5,000-$2500 Per DAY, with $1,000,000 cap

Escrow Law

Review

Maintenance of Escrow Accounts | Broker Responsible | Account Marked Escrow | Federally Insured |

Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed

in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the parties to the transaction, and shall

remain in that account until the transaction has been consummated or terminated. 18VAC135-20-160 B-1

Disbursement: Mutual Consent

Disbursement: Broker Discretion

• Letter of Notice

• Hand Delivered

• Certified Mail

• 30 Day Notice

• If within 90 days, notice can be by electronic notice, as outlined in the contract

Disbursement: Court System

Disbursement: Interpleader

Change in escrow cap for hearing in General District Court versus

Circuit Court

Interpleader - Third party surrendering a

dispute to the court on behalf of two other

parties.

2015 Regulatory Update

Continuing Education

Continuing Education hours taken in the last six months of a licensing cycle, which are in excess of those needed for re-certification, will be rolled over

to the next 2 year cycle

Unlicensed Assistants• Cannot Show Property • Must Be Paid a Salary/Hourly • Cannot Give Opinion/Advice • Cannot Hold Open Houses • Measure Homes • Host Walk-Throughs • Can Act as Courier • Can Organize Documents • Can Schedule Appointments • Can Place Signs • Can Produce Marketing Under Supervision of Agent • Employment Is Subject To Approval of Broker

EMD Disbursement

Once parties have agreed to order the disbursement of the EMD, the broker shall make disbursement to the receiving parties within 20

days.

Document Retention

Agents are required to turn certain documents a timely manner, and the Broker is required to retain a

copy of the following documents for 3 years. The documents will be complete and legible.

Includes Settlement Statements, Personal Service Agreements and Executed Agreements.

AdvertisingAdvertisement on “electronic media” requires the following: • City and state of Branch office you report to • Name of Firm • Agent’s name These disclosures must be on the viewable page of the website on electronic media or no more than one click away.

Advertising

For Sale and For Lease signs that are placed on properties must have the following:

• Firm name • Firms PRIMARY telephone number • Note: Agents with personal signs, must update them to have the Firm’s telephone number on them. Agents may add their mobile number, but that would be in addition to the Firm number. There can be no confusion as to which number is which on the sign.

Advertising

Agent’s business cards must have:

• Firm name • Agent’s name • Agent’s contact information which may be phone number, web address or email address

Family Disclosure

Disclosures when representation for a member o the agent’s family must be disclosed to all parties at the first substantive conversation regarding the specific property.

Prohibited Acts

Failure of agent to turn in all EMD checks, contracts, listing agreements, etc... in a timely manner to the firm.

Prohibited Acts

• Practicing with an expired license is a violation • Agents who allow their license to expire may not be paid any commissions during that time in which their license is expired or inactive. In the past we could pay commission to agents for work done prior to expiration or the license going inactive. That is no longer the case. • Absolutely no real estate related activities may occur by an agent who's license is inactive or expired.

Prohibited Acts

Unsupervised access to property is now a violation. In the past, only the lockbox rules required an agent to remain with clients when the agent opened the house.

Prohibited Acts

Agents may not sign or initial documents on the client’s behalf without prior written permission or authorization.

Prohibited Acts

Agents may not submit copies of the same EMD check for more than one offer.

Emerging Issues

Green Washing

• FTC Sets Guides for Enviromental Claims • Be Clear On Your Experience • Retrofitting • Tax Credits • Geothermal Systems • Certifications • Re-Testing • Expert Testers

Negligent Referrals

Recommended Language“The following list of vendors provides various services to buyers and sellers in Fredericksburg, VA. I’ve developed this list to assist clients while in a real estate transaction.

Neither I nor [Brokerage Name] warranty these providers or their work. Consumers are encouraged to research their choices by whatever means they deem necessary. Clients are free to use any vendor that they prefer. This list is simply a starting point and clients are free to search online or other trusted resources to obtain referrals.

If you are looking for repair providers and your home is built in the year of 1978 or before, please check the EPA website to find vendors, as special training is needed for certain work to be performed on your home. The providers listed below are not guaranteed to meet the criteria of the EPA”

Coming Soon and Pre- MLS

• Defined

• Who Benefits

• Documentation

• Advertising Ability

• Insurance

• Agency Coverage

• Compensation

What E & O Doesn’t Cover

• Injury or Property Damage • Fair Housing • Fraudulent Acts • Employment Issues • Assistants • Staff • False Advertising • Patents and Trade Secrets • Owner Agent Listings • Gross Negligence

Virtual Staging

Social Clients

Photographic CopyRight

Client Ratings

Home Inspections• When

• Information Only

• Full Reports

• Negotiations

• Receipts

• Contractors

Stigmatized Properties

• Hauntings

• Communical Diseases

• Crimes in Property


@mattrathbun

[email protected]

YouTube.com/MattRathbun1

ThankYou