Text Box
Click on the Client Name below to go to that page.
Client: Pennsylvania Association of REALTORS Client Contact: Not
Available.
Client contact is no longer with PAR. Type of Service: GRI Project:
Rewrite GRI 403 course and exam Project Description: BettsWorks was
contacted by PAR’s Education Director to review and revise one of
their five required GRI courses – GRI 403, “Managing Risk in Real
Estate.” The project requirements included:
• Review and revise learning objectives: addressing content
accuracy, clarity, correct format, and necessity.
• Writing or editing content to accurately support the learning
objectives. • Reorder content to improve course flow. • Simplify,
streamline, and clarify exam items when appropriate to
increase accessibility. • Eliminate content that appear to be based
on opinion and not
supportable data. • Correct general errors in punctuation and
usage. • Improve basic, grammatical structure. • Provide basic
manuscript editing of phrasing and overall style. • Eliminate
(whenever possible) or minimize changes in voice or tense. •
Eliminate those passages having a “folksy” tone. • Standardize
formatting, including headers, subheaders, footers, styles,
pagination, exercises, and appendices. • Format final products such
that the Instructor Manual maps with the
Participant Manual. The project deliverables included:
• A Revised Participant Workbook (as MS word & PDF documents) •
A Revised Instructor’s Manual (as MS word & PDF documents) • A
brief report outlining review results and rationales for
revision
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The following are sample pages from PAR’s GRI 403 Instructor
Guide.
Note: The following material is copyright protected by the
Pennsylvania Association of REALTORS®.
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Principal and Agent While a licensee functions
as one principal’s agent, he may also function as the agent of
other principals.
The principal authorizes an agent to represent his interests above
all others in a real estate transaction: this continues to be the
basic tenet of the law of agency. The principal may be a seller,
landlord, buyer, or a tenant in a real estate transaction.
Broker of Record
The Broker of Record is responsible for his/her licensees' actions
and therefore is the fundamental "agent." Thus, licensees function
as "agents of an agent."
Vicarious Liability And Imputed Knowledge
Vicarious Liability refers to a legal liability created not because
of a person's actions, but because of a relationship between the
person held liable and another party's action. A principal is
vicariously liable for the conduct of his/her agent. • For example
a broker may be held liable for his
salesperson’s actions. Imputed Knowledge is the concept that
knowledge held by an agent is attributed to the principal of that
agent. • For example, if a buyer’s agent is notified of the
seller’s
acceptance of the buyer’s offer, the buyer is bound by the contract
even if the buyer had no actual notice of the acceptance.
Vicarious Liability: The Licensee and the Consumer
EXAM ITEM 17
Both licensees and consumers are protected by the law by the
limiting of what is sometimes called vicarious liability. • A
consumer of real estate services is not liable for
acts of a licensee unless o the licensee is acting pursuant to the
expressed
direction of the consumer o or the licensee is acting based upon a
consumer’s
representation reasonably relied upon by the licensee.
• A licensee is not liable for acts of a consumer unless
o the consumer is acting at the expressed direction of the
licensee,
o or as a result of a representation by the licensee
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The following are sample pages from PAR’s GRI 403 Student
Materials.
Note: The following material is copyright protected by the
Pennsylvania Association of REALTORS®.
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• Read the scenario below.
• The following pages itemize the Listing Contract elements for you
to review, note, and answer questions regarding.
• Elements simply marked with a bullet point generally require
little to no explanation to a Seller.
• Elements marked with a *_________* denote items that may include
blanks to be completed.
• Items beginning with a “Q:” are typical areas of concern to a
Seller. Respond to these questions in the space that follows
each.
• Your instructor may choose to have you complete this alone, with
a partner, or as a class.
• You will have approximately _____minutes to complete this
activity.
• Be prepared to share your responses and thoughts.
• Later, you may wish to review the suggested answers to this
activity located in Appendix A.
Scenario A husband and wife call a local broker to talk to someone
about selling their house. These Sellers do are not very informed
about the process of listing a house, they just know that most
people who sell their homes enlist the help of professionals. You,
a Sales Associate, receive the call and schedule two visits—one to
inspect the home and a follow up to make the listing presentation.
A week later, you are sitting in the Sellers’ living room. You have
just finished the listing presentation and are about to ask for the
listing. You’ve explained all the things you can do to sell the
home quickly and for a good price. You’ve shown them recent area
sales statistics and suggested an appropriate asking price. You’ve
discussed commission, agency, and your commitment to fair
housing.
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. . . The Sellers ask you to walk them through the listing
agreement, element by element. Note: Although other such contracts
may be in use, for the purposes of illustration PAR’s “Listing
Contract: Exclusive Right to Sell Real Estate” is used as the
working example in this exercise to illustrate common elements. See
Appendix A for the contract.
Itemizing PAR’s Listing Contract
• Name of broker *____*
• Name of licensee *____*
_______________________________________________
____________________________________________
Item #1 • Address of the property subject that will be listed and
its
legal description *____*
_______________________________________________
____________________________________________
• Terms of the listing (i.e., beginning, end) *____*
Items #3-10 • Explanation of rights and duties of the broker Q:
What should you explain regarding the rights and duties of a
broker?
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10 Q: “What if someone damages the property or steals
something during a showing?”
_______________________________________________
5 • Commission rate *____* and the conditions that trigger
entitlement to payment of commission *____* (in the case of an
exclusive right-to-sell listing, the stated condition might be if a
sale or property exchange occurs during the listing period)
Q: “Can we negotiate the commission rate?”
_______________________________________________
_______________________________________________
____________________________________________
7D • Carryover clause *____* (
_______________________________________________
____________________________________________
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_______________________________________________
____________________________________________
Q: “What if we sign a listing agreement with someone else
after your listing agreement has expired?”
_______________________________________________
_______________________________________________
____________________________________________
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact:
Dan Schmidt/Dawn Headke Type of Service: Consulting Project:
Instructional Development Team Search Project Description:
BettsWorks was contacted by REBAC to locate and evaluate potential
instructional developers for one of REBAC’s courses. The project
requirements included:
• Create an RFP to REBAC's specifications for a Course Writer •
Distribute RFP to numerous venues and networks • Collect RFP
responses within timeline (deadline, early 2nd quarter) • Review
Proposals: References, writing samples, curriculum vitae,
ROI,
solicit and review additional works by candidates, etc. • Based on
Review, select Top Three Course Writer Candidates • Submit Top
Three to REBAC with a written evaluation of each based on
Review • Submit a recommendation for hire of the Top Three with
written
justification • All RFP's received, regardless of status, turned
over to REBAC • Interview selected course writer for SME needs and
suggestions. • Solicit and research venues and networks for SMEs •
Collect SME names • Evaluate SMEs • Forward select SME names for
Instructional Development Team to
REBAC The project deliverables included:
• An RFP • Evaluate and recommend potential Instructional
Developers • Standardized form to conduct evaluation
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact:
Dan Schmidt/Dawn Headke Type of Service: Consulting Project:
Instructional Development Team Search Project Description:
BettsWorks was contacted by REBAC to locate and evaluate potential
instructional developers for one of REBAC’s courses. A second,
related project involved additional research and evaluation of
those course writer candidates not selected as top three. The
project requirements included:
• For REBAC’s future reference and internal use: Brief (not to
exceed one page) summary of BettsWorks’ evaluation of those Course
Writer Candidates who responded to RFP but were not selected as Top
Three.
• Summary to include results of: Reference checks Course sample
evaluation Evaluation of additional course works by Course
Writer
Candidate • For REBAC’s future reference and internal use: Brief
(not to exceed one
half page) summary of BettsWorks’ evaluation of every SME (min. of
5, max. 10) uncovered during course of research but whose name was
not forwarded
The sample document on previous page was used for this
project.
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Client: Real Estate Buyer’s Agent Council (REBAC) Client Contact:
Dan Schmidt/Dawn Headke Type of Service: Consulting Project:
Instructional Revision Team Search Project Description: BettsWorks
was contacted by REBAC to locate and evaluate potential
instructional developers to revise one of REBAC’s courses. The
project requirements included:
• Create an RFP to REBAC’s specifications for a Course Writer •
Distribute RFP to numerous venues and networks • Collect RFP
responses within expedited timeline • Review Proposals • Check
references • Evaluate samples • Evaluate ROI • Seek out and review
additional works by Course Writer Candidate • Based on evaluation,
select Top Three Course Writer Candidates • Submit Top Three to
REBAC with a written evaluation of each based on
Review • Submit a recommendation for hire of the Top Three with
written
justification within 45 days of acceptance of this proposal • All
RFPs received, regardless of status, turned over to REBAC • Solicit
and research venues and networks for SMEs • Collect SME names •
Review each SMEs qualifications • Based on evaluation, select
appropriate SMEs for Instructional Revision
Team • Submit appropriate SMEs to REBAC (to compliment the SME
team
already assembled by REBAC)
The sample document on previous page was used for this
project.
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REBAC: Course Writer Review Worksheet Proposal Checklist Candidate:
Mary Jane Shoes Technical section Mailing Address: 123 My Street,
My Town, My State and Zip Time-cost section Phone Number:
100-234-5678 Curriculum vitae Email Address:
[email protected] 2
course samples Website: Additional list of courses Course Proposal
Items: objectives; outline; timing 3 or more references
CURRICULUM VITAE Comments: Degree/Education 1 2 3 4 5 Experience 1
2 3 4 5 Designation(s) 1 2 3 4 5 License(s) 1 2 3 4 5
Affiliation(s) 1 2 3 4 5 Publication(s) 1 2 3 4 5 Achievement(s) 1
2 3 4 5 Current Occupation Overall Comments Regarding References:
REFERENCES: name, title, mailing address, phone number, and email
address Please Note: the numerical rating below is NOT from the
reference but is an overall rating of the reference based on the
reference’s qualifications and comments. Reference Name: Highlights
of Comments from Reference: #1 1 2 3 4 5 #2 1 2 3 4 5 #3 1 2 3 4 5
Overall Comments Regarding References:
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COURSE WRITING SAMPLES: course topic outline, objectives, course
abstract, and a few pages of actual content Course Sample #1 1 2 3
4 5 Instruct. design: thorough, congruent, etc 1 2 3 4 5 Objectives
are clear, well written, directed 1 2 3 4 5 Other 1 2 3 4 5 Course
Sample #2 1 2 3 4 5 Instruct. design: thorough, congruent, etc 1 2
3 4 5 Objectives are clear, well written, directed 1 2 3 4 5 Other
1 2 3 4 5 List of Additional authored Courses: 1 2 3 4 5 Additional
Comments Regarding Course Samples: COURSE PROPOSAL ITEMS Learning
Objectives: Well written, targeted, appropriate 1 2 3 4 5 Topic
Outline: Well designed, logical flow, relevant 1 2 3 4 5 Timing/
Topic Allocation: 1 2 3 4 5 Other: 1 2 3 4 5 Additional Comments
Regarding Course Proposal: TIME/COST & MISCELLANEOUS
Timeliness/Completion Date: 1 2 3 4 5 Cost: 1 2 3 4 5 Organization
of RFP Response, ie, easy to follow 1 2 3 4 5 Competence of Layout
of RFP Response 1 2 3 4 5 Impression of Candidate’s general
organization & competence via my interactions
Testimonial(s) Comments & Conclusions:
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Client: Arizona Association of REALTORS Client Contact: Barbara
Freestone Type of Service: Certification course creation Project:
Certified Ethics Instructor Program Project Description: BettsWorks
was contacted by the Arizona Association of REALTORS® to create a
six-hour course to certify the competency of instructors providing
presentations that meet NAR’s mandatory quadrennial ethics training
requirement. The project requirements and deliverables
included:
• Timed Outline with Objectives (6 hour course—50 minute hours) All
COE Articles will be provided to students; however, only four
will be covered in depth through class. Issues related to
instruction of the mandatory ethics training
course will be identified and explored with students. Best teaching
practices related to instruction of the mandatory
ethics training course will be identified and explored with
students.
For each article an explanation regarding its relation to the
practice of real estate.
Instructional skills to be basic in nature and to reference the
teaching of NAR’s mandatory ethics training course whenever
possible.
Instructor’s Manual (directions & explanatory notes) • Student
Manual • List of resources (included in the manuals) • PowerPoint
Program • Any additional, supplemental materials referenced in
instruction • A scenario-based exam and answer key (min. 25 items)
• Style sheet describing the above items
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The following are sample pages from the Arizona Association
of
REALTORS®’ Certified Ethics Instructor program – Instructor
Guide.
Note: The following material is copyright protected by the Arizona
Association of REALTORS®.
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Unit 1, Segment 3: Why Ethics? Why now? PPT 12 The Code requires
REALTORS® to treat all parties honestly. Explain that REALTORS®
often find themselves with ethical dilemmas. For instance, they are
representing their seller client at an open house and a consumer
comes in and discloses a lot of personal information. The REALTOR®,
who now knows a lot about the consumer, can decide to do the
ethical thing and explain agency relationships or not. Or, if the
consumer really likes the house but not the list price, the
REALTOR® could (or could not) divulge that the seller will go
lower. The same scenario works for a buyer agent – but in reverse.
Also some brokers actually have policies that contradict the Code.
How does the ethical REALTOR® deal with that? Take a few minutes
and discuss ethical dilemmas because of agency relationships.
Potential Ethical Dilemmas for REALTORS® Training Tip: Go beyond
the material in the NAR materials to reinforce the value and
importance of behaving ethically.
REALTOR®
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PPT 13 - 14 The Good News… The Bad News… Ask: How could you use
this information to teach the ethics class? How do we improve this?
By teaching ethics!
Ethics are good for business! According to the NAR 2009 Profile of
Home Buyers and Sellers: Agent is honest and trustworthy is the
most
important factor when choosing an agent (31%) followed closely by
reputation of agent (23%).
When ranking the importance of real estate
agent skills and qualities, 98% of respondents ranked “honesty and
integrity” as very important.
Training Tip: Don’t be afraid to explore REALTOR.org for additional
resources to enhance your own training materials! A 2008 Gallup
Poll: Real estate agents received relatively neutral ethics
ratings. According to the poll,
“About as many Americans think each of these professions has low
honesty and ethics as rate them highly, while the plurality or
majority considers the professions of ‘average’ integrity.”
Source: www.gallup.com/poll/124628/Clergy-Bankers-
New-Lows-Honesty-Ethics-Ratings.aspx
A 2006 Harris Poll indicates that only 7% of the public trusts the
advice of a real estate licensee “completely,” 20% said they don’t
trust the advice “at all.”
Unit 2, Segment 2: Articles 1-17 of the NAR Code of Ethics Articles
of the COE 45 minutes PPT 18-19 Review each Article making sure to
note the tie-in to the Arizona regulations and the real-life
practice tips. The definition of each Article here comes from the
CEAM. The longer definitions are in the COE handout. Teaching Tip:
Remind participants that when teaching the Quadrennial Training
they should incorporate Arizona regulations and laws as applicable.
Examples have been included with this section of the training to
help them. DO NOT go into the Articles in too much depth. Some of
the information has been provided to the participants as reference
material only.
Articles of the Code of Ethics NAR Quadrennial Training
requirements do not require the review of each Article; however,
this course requires trainers to be familiar with each Article. The
COE defines each article and its Standards of Practice. The summary
for each article below is the one provided in the CEAM. Article 1:
Protect and promote your client’s interests but be honest to all
parties
(More on Article 1 and how to teach it will follow in subsequent
sections.)
Articles 2 and 3 NAR has a video on 2 and 3. NAR also provides
additional training materials to use with the video. You can access
that video and the supplemental materials on REALTOR.org at
http://www.realtor.org/law_and_policy/code_of_ethic
s/coev_articles_2_and_3 or on YouTube at
http://www.youtube.com/watch?v=OyYIGXz43Bo&featu re=related
Article 2: Avoid exaggeration, misrepresentation, and concealment
of pertinent facts. Do not reveal facts that are confidential under
the scope of your agency relationship.
(More on Article 2 and how to teach it will follow in subsequent
sections.)
PPT 20-21 As you go through this Unit, periodically ask the class
for input as to how an article may be violated in real-life and
remind them to always tie their training to real life examples.
Remind the participants that they must teach what’s actually in the
Code, not what they personally think. In 2009, in AZ, there were 28
Article 3 violations charged. Five were forwarded for a hearing, 23
were dismissed, 3 were found “no violation”
Article 3: Cooperate with other real estate professionals to
advance client’s best interests.
This Article compares to Arizona Regulation R4-28-1101. Duties to a
Client: Subsection D: A licensee shall not allow a controversy with
another licensee to jeopardize, delay, or interfere with the
initiation, processing, or finalizing of a transaction on behalf of
a client. This prohibition does not obligate a licensee to agree to
alter the terms of any employment or compensation agreement or to
relinquish the right to maintain an action to resolve a
controversy.
According to GRI 308... Cooperation optimizes the benefits
available to
clients and customers as well as REALTORS®. Cooperation ensures
sellers of the broadest possible market exposure.
Cooperation should be extended as the normal professional practice
unless there is an overriding reason to withhold it.
There are two valid reasons for not cooperating on a listing: (1)
instructions from the seller to not cooperate; (2) cooperation is
not in the seller’s interest.
If the seller instructs you to not cooperate, your should notify
the affected REALTORS® in writing that there will be no cooperation
and compensation based upon instructions from your principal, and
be prepared to justify your refusal to cooperate if you are charged
with an arbitrary refusal to cooperate.
The same amount of cooperating compensation does not have to be
offered to all classes of cooperating brokers however.
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Class Discussion. Use this opportunity to talk about this Article
and potential violations but turn the topic to … “In your
classroom, how would you teach this Article? Brainstorm some
answers.
Although compensation does not necessarily
require compensation, not compensating could possibly be construed
as not cooperating and generally not in the best interest of the
client.
How/have you seen this Article violated in real estate practice in
your area? ____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
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PPT 87-91 Pages 32-33 Point out that additional details about the
Code of Ethics are available in the CEAM and in the “Before You
File an Ethics Complaint” brochure. Remind them that COE trainers
should spend time going through the materials available to them on
REALTOR.org. Follow the flow-chart on the right to explain the
basics of the Formal Complaint Process. Details for this process
are in the “Before You File An Ethics Complaint” brochure. On the
third step, ask the following question: True or False – the
complaint can include a citation of a standard of practice as a
potential violation. The answer is False. Only Articles can be
cited.
Formal Dispute Resolution – Filing an Ethics Complaint Key concepts
to emphasize when teaching: Who can file a complaint? Role of
grievance committee. Role of ethics hearing panel. Authorized
discipline and administrative fees. Primary emphasis of discipline.
Due process. Preponderance of the evidence.
Basic process:
Complainant files ethics complaint with local association within
180 days (timely filing)
Complaint includes narrative description and must cite one or more
of Articles that were allegedly violated
Local association’s Grievance Committee acts like a “Grand Jury.”
Reviews complaint and determines, “If allegations made are taken as
true, is there a violation of an Article or Articles?”
Yes No
Grievance Committee forwards complaint for a hearing. Due process
is important.
Grievance Committee may feel that allegations would not constitute
a violation. Complainant should review complaint to see if article
cited was appropriate. Appeal is available. A
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Have a brief discussion about how the participants can best teach
this section because there are a lot of exam items based on this
material.
Complainant has burden of proof. Standard of proof must be “clear,
strong and convincing.”
Hearing is held. Panel makes decision and issues Findings of Fact.
Determines discipline. Appeal is available on limited basis.
A
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Presentation.
Note: The following material is copyright protected by the Arizona
Association of REALTORS®.
9/15
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The following is a sample page from the Arizona Association
of
REALTORS®’ Certified Ethics Instructor program – Style
Guide.
Note: The following material is copyright protected by the Arizona
Association of REALTORS®.
9/15
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Style Guide For: Arizona Association of REALTORS®; Certified Ethics
Instructor Program By: Lisa Betts/Adrienne Nichols Date: March 10,
2010 Manual/Reference: Gregg Manual of Style 10th ed. -Sabin
General Format: Left-Right columns Reference: Font: Times New
Roman, Arial, Cambria Page Margins:
T&B=1; L&R=1.25
Document Elements Title Page:
Footer & Header Content:
Times New Roman all Intro Header: RBG128; 16pt “Arizona Association
of REALTORS®” --20 pt vertical space-- Head1: RGB31-73-125, 36pt,
left justified Head2:RGB79-129-189, 20pt, left justified Head3:
RGB128, 16pt --No vertical spacing between 3 heads Note: blue/gray
zig zag box graphic across bottom 1/3 Header: Arial bold, 14pt,
RGB54-95-145 --no vertical space between header & text-- Text:
Arial 12pt black; single spaced Text……(ellipses)…Page # Called
“Course Introduction”& includes “course Learning Objectives
(italicized)” Head1: Cambria 18pt bold; left justified --12pt
vertical space-- Text: Cambria 14pt Head2: Cambria 16pt bold; left
justified “For The Instructor” (separate page) Head1: Cambria
16ptbold; centered Head2: Arial 14ptbold; left justified Text:
Arial 12pt italic Head3: (wingding carrot) Arial 12pt bold; 12pt
space before & after --- --- None provided in document
Continuous pagination & footers beginning TOC as pg2. No
header
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Client: Arizona Association of REALTORS Client Contact: Barbara
Freestone Type of Service: Certification course creation Project:
REALTOR® Certified Risk Management Specialist (rCRMS) Project
Description: BettsWorks was contacted by the Arizona Association of
REALTORS® to create three, complimentary courses that comprise a
proprietary certification program. Each course consisted of 6-7
hours of content based on the book Arizona Real Estate: A
Professional’s Guide to Law and Practice by K. Michelle Lind, Esq.,
AAR legal counsel, along with custom-developed collateral content.
The three courses are:
1. “Federal Legal Issues” 2. “Advertising, Marketing &
Misrepresentation: Risk & Regulation” 3. “Claims, Litigation
and Remedies”
The audience for these courses--and the certification--is brokers
and sales agents. The purpose of the certification is to provide
risk management information on the subjects: to increase members’
awareness and knowledge so they can manage their risk
better/implement risk management practices. The project
requirements and deliverables for each course included:
• Timed Outline with Objectives (6-7 hour course—50 minute hours) •
Student Manual • Instructor Manual • Style sheet describing the
above items
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The following are sample pages from the Arizona Association
of
REALTOR®’s rCRMS “Federal Legal Issues” Student Materials.
Note: The following material is copyright protected by the Arizona
Association of REALTORS®.
9/15
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• Is a federal _________________________.
• Was enacted in 1974.
• Was created to ensure that buyers receive adequate information
about the costs of financing and closing escrow on the purchase of
a home.
• Was enacted to protect consumers from unfair practices
by_________________________.
For real estate licensees, RESPA primarily impacts closing costs
and settlement procedures and has two overarching goals.
RESPA is also especially helpful to borrowers as they see to make
decisions about which lender to choose. This unit will primarily
discuss the main goals noted in the graphic.
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Unit 2, Segment 7: Enforcement and Penalties for Violations
Enforcement and Penalties for Violations of the Fair Housing Act
The Fair Housing Act is enforced by the Department of Housing and
Urban Development (HUD) through its Office of Fair Housing and
Equal Opportunity. HUD is also responsible for developing and
enforcing regulations to promote the Fair Housing Act. One of these
regulations is a requirement for businesses involved in
housing/real estate transactions to display a fair housing poster
[HUD-928.1 (2/2003)] in their office. Brokers’ Risk Reduction
Tip
Prominently display the requisite Fair Housing Poster in your lobby
or at your front desk. A copy of the poster is available from HUD
at: http://www.hud.gov/offices/fheo/promotingfh/928-1.pdf.
The Complaint Process
• Complaints are usually filed with HUD • Time limitation to file
complaint • Lawsuits can be in state or federal courts
If the complaint is filed with HUD, HUD will investigate the
complaint and determine if the discrimination charges are justified
or not. Complaint Process
File Complaint with HUD
•HUD investigates. •Issues a conciliation agreement if possible.
•May refer to state or local agency .
Complaint moves forward
•Case goes to administrative with administrative law judge. Can
issue injunctive relief. •Or case goes to Federal District Court
where attorney general litigates it. •Damages and court costs can
be awarded.
In addition
•Complainant can file suit in Federal District Court or state court
as long as there is no conciliation agreement and administrative
law judge has not started a hearing. •Actual damages, court costs
and punitive damages can be awarded.
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Unit 2, Segment 8: Arizona Fair Housing Laws
Arizona Fair Housing Act (A.R.S. §41-1491 ET. SEQ) The Arizona Fair
Housing Act is very similar to the federal Fair Housing Act.
Arizona’s law has different procedures for the administrative
complaint process.
• Fair housing complaints are filed with the
______________________________.
• ACRD will investigate the complaint at _______________ to the
complaining person.
• Fair housing complaints filed with ACRD will be automatically
dual-filed with HUD.
• A person has _______________ after an alleged violation to file a
complaint.
[http://www.azag.gov/civil_rights/TipCards/Housing.pdf]
Individuals who believe their rights have been violated can call
the Civil Rights Division at 877-491-5742 (Phoenix office) or
877-491-5740 (Tucson) or use an online civil rights complaint form
at http://www.azag.gov/civil_rights/complaintform.html, or write a
letter and mail it to:
Arizona Civil Rights Division Office of the Attorney General 1275
W. Washington Street Phoenix, Arizona 85007
Title Intent
A.R.S. §33-1317 Discrimination by landlord or lessor against tenant
with children prohibited . . .
Prohibits discrimination by a landlord against a tenant with
children
A.R.S. §33-303 Discrimination by
Prohibits landlords from not renting to individuals with children.
Also prohibits advertising for rental advertising that
discriminates against families with children.
A.R.S. §20-1548 Underwriting
discrimination Prohibits discrimination in the issuance or
extension of mortgage guaranty insurance
A.R.S. §41-1442 Discrimination in
places of public accommodation
A.R.S. §41-1492.02 Prohibition of
Prohibits discrimination by public accommodations and commercial
facilities.
A.R.S. §32- 2153(A)(19)
Grounds for denial, suspension or revocation of licenses . .
.
Allows the Arizona Department of Real Estate to suspend or revoke a
license, deny the issuance of a license or deny the renewal or
right of renewal of a license for violating the federal fair
housing law, the Arizona civil rights law or any local ordinance of
a similar nature.
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Unit 2, Segment 10: Unit Conclusion and Review There are
_________________________ which may not be discriminated against.
Practices such as refusing to sell or rent to individuals or
families based on any of the seven protected classes is a fair
housing violation. Actions such as _______________,
____________________ or __________________are strictly prohibited.
Real estate practitioners should educate themselves about fair
housing and stay well informed. Agents should have good lines of
communication with their clients throughout the process and
efficiently document any discussion. To help ensure adherence to
fair housing laws, brokerages should have in place policies and
procedures that are consistently enforced. NAR is an excellent
source of information. NAR’s Fair Housing Handbook has sample
checklists, sample forms, sample policies, etc. HUD also has
resources, including a blog and Face Book page.
Fair housing isn’t just a broker issue or a sales agent issue. It’s
both. As an agent, you may be willing to take a risk and engage in
activities that violate fair housing laws. Should you choose to do
so you not only risk your reputation and your license, you also
jeopardize the reputation and license of your broker.
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The following are sample pages from the Arizona Association of
REALTOR®’s rCRMS “Claims and
Remedies” Student Materials.
Note: The following material is copyright protected by the Arizona
Association of REALTORS®.
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Unit 3, Segment 3: Risk Reduction Tips The following are some basic
tips to potentially reduce the risk for claims.
• What is the nature and _______________ of the property?
• Have you read and understood the purchase contract and the
related forms?
• What is the _______________and _______________ of the
_______________?
• Is your information accurate?
• Avoid shortcuts
• Handle offers properly and get them to your clients as soon as is
reasonable
• Think before you speak
Communicate
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Buyer Representation in Real Estate offers the following additional
suggestions:
• Ensure that all parties understand the ____________________that
are implicit or explicit.
• Pay careful attention to details, especially as a buyer’s agent:
o Home inspection and required negotiations resulting from the
inspection o Environmental issues and inspections o
____________________ o ____________________ o
____________________
• Inform clients about their _______________
• Prior to closing, offer the client a review of documentation,
requirements, etc.
This applies particularly to buyer’s agents.
• Establish a standard closing system
• Provide clients with checklists
Activity Follow the instructions of the presenter. Identify at
least five specific things that could go into a checklist to
provide to clients.
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Unit 6, Segment 2: ADRE and Complaints The Arizona Department of
Real Estate (ADRE) reports the following statistics for
complaints:
Investigations and Development Services. Arizona Department of Real
Estate
The ADRE investigates violations of the real estate statutes and
Commissioner’s Rules by licensed real estate brokers and
salespeople. The majority of complaints involve one or more of the
following:
• ______________________________ • Dishonest dealings •
______________________________ • Unlicensed activity •
______________________________
• Landlord/tenant disputes
• ______________________________
• ______________________________
An action that may be unethical is not necessarily illegal.
Consumers are directed by the ADRE to contact the Arizona
Association of REALTORS® at www.aaronline.com/Disputes or by
scanning the code below.
Fiscal Year Advertising Education Licensing Property
Management
FY 2011 (as of June 22, 2011) 19 3 569 62 FY 2010 13 5 675 57 FY
2009 58 4 846 92 FY 2008 87 12 1010 95 FY 2007 114 12 4084 84
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Steps in Mediation In mediation, there is a neutral party, the
mediator, who attempts to assist the parties to negotiate a
mutually acceptable solution to the dispute. The mediator helps to
realistically evaluate the merits of the claim or defense and help
the parties evaluate the risks of litigation. Mediators can often
provide a creative solution not always possible in court. During
mediation, all parties (with or without attorneys) meet in the same
room and each side make an opening statement. Each side states
their claim or defense, evidence and their desired outcome. The
parties are then separated to discuss their position in detail. The
mediator works with both sides and helps each party evaluate the
strengths and weakness of his or her position. The mediator then
engages in shuttle diplomacy conveying each side’s concerns,
positions, offers, and counter-offers. Everything told to the
mediator in confidence should be kept confidential.
Mediator meets with all parties
Mediator meets with Party A
Mediator meets with Party B
Mediator goes back to Party A with Party B’s concerns and
offers
Mediator goes back to Party B with Party A’s concerns and
offers
Mutually acceptable and
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Client: Florida REALTORS® Client Contact: Will Campbell Type of
Service: GRI; Course Review; Course Development Project: Review and
Edit of New GRI Program Materials Project Description: The Florida
REALTORS® Association (FAR) contacted BettsWorks to provide third
party evaluation, correction, suggestions, and revisions regarding
the course materials for its new GRI program. For the purposes of
this project, materials constituted course learning objectives,
student manuals, and exam items.
The project requirements included: • Standardized form to conduct
evaluation • Establishing a consistent style and format for all
materials so that they
appear to have been authored by the same person. • Providing
general editing. • Reviewing and comparing materials to NAR
established benchmarks
for GRI accreditation and making recommendations. • Reviewing
content for breadth, depth, flow, objective alignment, exam
alignment, module-to-module consistency, and adherence to state
mandated levels of difficulty—making recommendations—and acting on
recommendations when needed.
• Obtaining new course material/content when necessary by
outsourcing its creation to SMEs and/or facilitating its
procurement by other means with the prior approval of FAR.
• Revising/creating exam items to comply with Florida commission
rules regarding level of difficulty.
• Revising/Creating exam items to reflect new or altered course
content. • Reviewing of all exam items for objective congruency and
item
integrity in adherence to the established “Item Writing
Guidelines.”
Deliverables included: • Style Guide and format template. •
Completed NAR benchmark review form/peer review. • Revised student
materials.
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Adjustable-Rate Mortgage
An adjustable-rate mortgage (ARM) is a loan with an interest rate
that adjusts on the basis of changes in the economy and costs of a
lender’s funds. Adjustable-rate mortgages are popular because they
usually start with a lower interest rate and a lower monthly
payment. It is important to understand the specifics of an
adjustable-rate mortgage. It is also important to remember that
ARMs not only go up in rate but they may go down in rate because
they are based on a formula using specific economic data.
Pros of Adjustable-Rate Mortgage Cons of an Adjustable-Rate
Mortgage
• Adjust with fluctuating interest rates, making them fair to both
lenders and borrowers
• Good for short-term owners
• Most ARMs have caps and could have convertible options to convert
to fixed rate
• Good for borrowers who have periodic wage increases
• Good for those who desire an “Interest Only” option
• Rate adjustments make them unpredictable
• Borrowers may tend to over- leverage based on the hope of
receiving wage increases or property appreciation
• Could prove a disadvantage or even a danger to a short-term owner
whose plans change; forcing him or her to bear the unexpected
interest-rate adjustments
ADJUSTMENT PERIODS FOR ARMS All ARMs have adjustment periods that
determine when and how often interest rates can change. There is an
initial fixed-rate period during which the interest rate doesn’t
change. This period can be as short as one month to as long as ten
years. After the initial period, the interest rate will change.
Common ARM products have the adjustments of one month, six months,
one year, two years, three years, or ten years. They can adjust
three ways: initial adjustment, annual or bi-annual adjustment, and
life-time adjustment.
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CREDIT AND THE MORTGAGE PROCESS Understanding and working with
credit is a critical part of the home buying and selling process.
Credit scores play an important role in the credit process.
Understanding Credit Scores
Credit scores are a vital part of credit health. When a consumer
applies for credit – whether it’s a credit card, a car loan, a
personal loan or a mortgage – lenders will want to know the
consumer’s credit risk level. To understand an individual’s credit
risk, most lenders will look at the individual’s credit score. A
credit score influences the credit that’s available and the terms
(interest rate, etc.) that lenders offer. The payoff from a good
credit score can be significant.
[Source:
www.freddiemac.com/creditsmart/pdf/YourCreditYourHomeYourFuture.pdf
]
For Example
If a consumer has good credit: A $125,000 home mortgage at 7% for
30 years costs $831.63 per month for principal and interest. After
making all 360 of the payments (12 months times 30 years), the
total paid is $299,386.12. If the consumer’s credit is impaired: A
$125,000 mortgage at 12% for 30 years costs $1,285.77 per month for
principal and interest. After making all 360 of the payments (12
months times 30 years), the total paid is $462,875.66. The
difference: That’s a difference of $163,488.86 in additional
interest the consumer will pay over the life of the 30-year
mortgage if the consumer’s credit is impaired and the consumer is
charged a higher interest rate on his or her mortgage.
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Unlicensed Practice of Law
There is no clear line between what is, and what is not, the
unlicensed practice of law. Generally, if knowledge to do specific
work of a legal nature is not within the average person's grasp,
then to give advice or render services to others regarding such a
situation is the unauthorized practice of law.
Examples of the Unlicensed Practice of Law
• Advising a customer or client whether there has been a breach of
a sales contract
• Drafting an assignment of contract
• Explaining a party’s legal rights to terminate a contract
Restrictions on Brokers and Sales Associates
The broker or sales associate is restricted to drafting those parts
preliminary in nature for bringing the buyer and seller together
(e.g., memorandum, deposit receipt, contract involving broker's or
real estate licensee’s services).The broker may not explain the
legal rights of a party to a sales contract, although the broker or
agent can read over the contract with the party. Brokers may not
complete standard conveyance forms such as deeds, mortgages, notes,
assignments and satisfaction except as owners. An agent may not use
a power of attorney to draft leases or other legal documents for
the principal, but may become an authorized signatory for the
principal.
Preparing Leases
There are two residential lease forms approved for use by
non-lawyers by the Florida Supreme Court.
Residential Lease for Apartment or Unit in Multi-Family Rental
Housing (other than a duplex) Including a Mobile Home, Condominium,
or Cooperative (for a term not to exceed one year);
Single Family Home or Duplex (for a term not to exceed one year).
These can be obtained through [www.floridarealtors.org]. In
general, a non-lawyer who is not a party (lessor or lessee) may
assist parties in filling in the blanks by engaging in limited oral
communication with the parties. Non-lawyers other than the parties
are prohibited from modifying these forms.
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FEDERAL INCOME TAXES AND DEDUCTIONS Taxpayers often participate in
discussions about write offs or tax deductions. Just as often,
however, the average taxpayer doesn't fully understand the
implication of the write off or the deduction. In an effort to
understand the value of taking a deduction, real estate licensees
and homebuyers must first have an understanding of basic income tax
rates.
Marginal Tax Brackets
A taxpayer’s marginal tax rate is determined after total income and
adjustments to that income are calculated.
After taxable income is determined, the taxpayer needs to refer to
the tax tables by filing status (single, married filing jointly,
married filing separately, and single head of household) that are
set each year by the IRS. Note: Refer to www.irs.gov for the most
updated tax rate
schedules. The QR code to the left provides information from the
IRS outlining income schedules, also available at
www.irs.gov/pub/irs-drop/rp-11-12.pdf. The United States has
progressive income tax rates; that is, to
determine the amount of tax owed, a process called stacking is
used. The more taxable income a taxpayer has, the higher the tax
rates become and, therefore, the more tax that is owed. Each rate
on the tax table is called a bracket. If a taxpayer goes from one
bracket to a higher one, it is called bracket creep. In theory, a
taxpayer whose income falls within the higher tax brackets is taxed
at a higher rate. The marginal tax rate is used to determine how an
investment would be impacted by taxes, or in calculating the tax
savings for
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THE CHANGING TIDE OF SOCIAL MIGRATION Florida continues to be a
desirable location for immigrants to the United States. From
2000-2009 Florida ranked third behind California and New York in
the number of legal immigrants with 1,083,659 new residents.
[Source: US Department of Homeland Security, 2009 Yearbook of
Immigration Statistics (Released 2010), Data from Fiscal Years
2000-2009]
Among the 50 major metropolitan areas the US government ranks,
Florida is home to four of the top 50. See the table on the next
page for more details.
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Client: Vermont Association of REALTORS® Client Contact: Robert
Hill, Type of Service: GRI and Consulting Project: Vermont GRI
Accreditation Submission Review Project Description: BettsWorks was
contacted by the Vermont Association of REALTORS® to review and
revise GRI program accreditation documents. The goal of the project
was a successful accreditation of the Vermont GRI program. The
project requirements/deliverables included:
• Written documentation explaining NAR’s clarifications regarding
revision of the GRI Accreditation submission.
• Written response to NAR regarding direct questions from the
review panel.
• Revised accreditation submission reflecting revised objectives
and evaluation forms.
• A second round of submission adjustments --if needed/directed by
the NAR review committee.
Note: There are no sample documents available for this
project.
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PAR GRI 403 Instructor Guide Sample Content
PAR GRI 403 Student Guide
PAR GRI 403 Student Guide Sample Content
REBAC
Course Writer Review Worksheet
Course Writer Review Worksheet
Course Writer Review Worksheet
Course Writer Review Worksheet
AAR Instructor Guide
AAR rCRMS Student Workbook
Arizona Association of REALTORS rCRMS Student Workbook
Florida REALTORS GRI
Vermont Association of REALTORS