Special Town Hall Meeting

June 13, 2017 9-11 am

Orange Beach Community Center
Orange Beach, Al. 36561

What do we really know?

Knowing the letter of the law is not anyone’s favorite part of selling real estate, but it is arguably one of the most important parts of our job. Though we all work and act in ways that we believe to be appropriate and within the legal guidelines, too often agents are unknowingly breaking laws.

Creatures of habit

We are creatures of habit. We do things a certain way because that’s the way we have always done it. We may not even know why we do things a certain way but we certainly don’t want to change. To change would get us out of our comfort zone.

A Town Hall style meeting

Alabama Real Estate Institute is always trying to provide the best quality information available. We strive to stay abreast of the most current laws affecting the real estate industry and then we pass that knowledge on to our students. This is the reason we decided to have this “town hall” style meeting. Politicians use this type venue to get their message out and to gain support. So I decided to try it.

Attorney General speaks out

The main speaker for our meeting is Mr. Chris Booth. He is an Attorney General, appointed by the Governor of Alabama. He is also the senior counsel for the Alabama Real Estate Commission. I view him as the person that will prosecute us if we violate the state licensing law, and he is the one that will defend us when we’re in the right. Therefore, when he speaks, we should listen. During this meeting we will learn things that are not printed in articles.

Some of the topics discussed

Topics that will be covered in this town hall meeting are listed below; plus questions that you may want answers to.

  • Complaints received by the legal department of the real estate commission
  • What cost should be included in an estimated closing statement
  • Recovery fund verses E & O Insurance
  • Disclosure of caveat emptor and agency at initial contact
  • Power of Code of Ethics compared to the law
  • Property management issues and agent rentals
  • Disclosure of earnest money not collected
  • Real estate signs on non-listed property
  • RECAD and estimated closing statements as they relate to commercial property
  • Receipt of commissions bypassing the broker
  • Concessions and compensation as an inducement to purchase

It cost nothing for you to attend with the exception of your time. Breakfast type food will be provided at not cost to you. We do, however, ask that you RSVP me so I can save you a seat and make sure we have something for you to eat.

Please make sure you thank these sponsors for helping make this meeting possible.

Anchor Title and Excrow

Gold Star Realty

ACOPIA Home Loans

 

 

 

 

                       

 

 

e-Signatures

Our job is to protect the consumer!

SAFE or UNSAFE?

Last week we had a Summit for the Distinguished Real Estate Instructors in St. Louis, Mo. In attendance were the most outstanding real estate educators across the county; from Florida to Canada, Maine to California and all states between. One of the topics discussed was judicial rulings and legal discussions concerning the legalities surrounding the use of e-signature programs. It appears that this is a much larger issue than I initially thought.

Since my mission is to educate, train and protect real estate agents while at the same time protecting the consumer’s best interest, I feel it necessary to make everyone aware that e-signatures are [Read more…]

Getting the Most from Mold Remediation

 

 Controlling Moisture   Fix leaks.  Under sinks, in air conditioning condensate lines, ice machines.   Make sure windows and doors close tightly and don’t leak damp air inside We have seen big mold problems develop in locations where the outside damp air was pulled into the structure for a week because a sliding glass door or window was not completely closed.   Quickly (24-48 hours or less) get moving on correcting water damages caused by water intrusions from the above leaks. Associations need to have the ability to begin mitigating water damages in a condo because they often affect others in the same building.   Keep it dry,  Make sure the air conditioning system is working correctly and RUNS.  Remember mold can grow at 60% relative humidity and around here that’s most of the year.  In beach front condos your unit is  insulated by your neighbors condos and how hot or cold they keep their unit can have and effect on yours, and whether your thermostat ever senses it’s hot enough to turn on the unit and cool and dehumidify the condo

Can’t be seen with the necked eye

Since we are located in a coastal area, moisture and mold is a real problem. I asked a friend of mine, Michael Conroy with “Expert Dry” for the rights to publish the article below. I think you will find it most interesting and helpful.

 

Getting the most out of mold remediation is like telling someone how to enjoy a root canal.  Professionals should do both processes, as painlessly and efficiently as possible and at a fair price but who wants to go there anyway?

Rather than first discuss the blissful benefits of mold remediation lets discuss how to avoid them if possible first.

Mold Needs Moisture, proper temperature and a food source to grow and develop.

Of these three above requirements we can only really control one

1.All of the built structures are constructed of organic materials.  Wood, natural fabrics, drywall,  particle board and even the “bio-film” that sticks to concrete and glass or tile are mold food. [Read more…]

Farming—Step 2; Letter of Introduction

The importance of the letter of introduction The letter of introduction will require a great deal of thought and preparation. A simple letter stating your name and a little information about yourself, the company name and address and telling them you would appreciate the opportunity to be of service to them, just doesn’t cut it. This letter must grab their attention in the first couple sentences or they will trash it and you will have accomplished nothing. If your letter is well received it will make the next step much easier, however, if they perceive it as mass marketing effort, the next step automatically become much more difficult. The very appearance of this letter is so important that I suggest it should have a hand written address and return address. I believe it makes a difference when a fountain pen is used rather than a ball-point pen. We want it to be personal, and to leave an impression of great importance.

How long has it been since you used one?

Throughout this series of steps to successful farming, you will notice a close comparison and use of terminology related to row-crop farming; such as raising cotton, corn and etc.. After you have selected the farm area you want to concentrate your efforts in;  it’s now time to prepare the soil for planting. This is a very important step because it is your first contact with potential customers that own property in the subdivision or condominium complex in which you plan to earn your living. The second step is to prepare a letter of introduction of which you will mail to all owners in your farm area.

The importance of the letter of introduction

The letter of introduction will require a great deal of thought and preparation. A simple letter stating your name and a little information about yourself, the company name and address and telling them you would appreciate the opportunity to be of service to them, just doesn’t cut it. [Read more…]

Understanding Caveat Emptor

 Alabama is Different than most other States…. I can’t say for sure but based on my research, the only states that are still caveat emptor states are Virginia, Arkansas, and Alabama. When a person buys real estate in these three states, they need to fully understand it is their responsibility to make sure they know what they’re getting, that it’s in good condition and works properly. When the buyer does his due diligence to have the property inspected, their legal rights remain in place after closing should some latent structural defect appear. If a buyer elects not to have the proper inspection done, closes on the transaction and then a latent structural defect appears and the buyer sues for damages; numerous Supreme Court cases have ruled in favor of the seller and stated caveat emptor; the buyer is responsibility to inspect the property prior to purchase.

BUYER BEWARE

This is a topic I try to talk about in every class I teach because it is the most important and the least understood law. I intentionally try to scare real estate agents to get them to understand the importance of the law and the effects it has on people buying real estate in Alabama. Today I will tell you how to see the law as it is written, disclose the other states that have the same law, and explain the dangers and remedies associated with caveat emptor.

Caveat Emptor is the law in Alabama…..

The Alabama Supreme Court has held caveat emptor to be the law in a consistent line of cases. Everyone should be on notice that there is no warranty which comes with the sale of a used home.

Real estate agents were taught when completing their educational requirements to get their license that caveat emptor is a Latin [Read more…]

Quadrennial Code of Ethics

The National Association of Realtors was formed in 1908. And then in 1913, established the Professional Standards for Conduct. These are standard we refer to as the Code of Ethics. The National Association of Realtors requires all its members to take a special, updated version of the Code of Ethics every four years. These same standards were later the basis for many state laws which govern the representation of consumers as it relates to buying and selling real estate. NAR membership is comprised of state and county boards that cover the entire United States; which is the largest professional association in America.

Most state laws require [Read more…]