Get The Facts, August 30, 2022

Draft Like A Lawyer Is Live And In Person

Coming October 10th to the Conference Center at Seattle-Tacoma International Airport! Have you been to law school? Probably not.....yet you are expected to draft and use purchase agreements with the same expertise as a lawyer when preparing and using real estate forms to create contracts between buyers and sellers. Complicating that task, you have over a hundred forms at your disposal through the statewide forms system and you must be able to navigate the forms and know which form to use when and how one form impacts another. Enjoy Draft Like a Lawyer in person over two days. Featuring a curriculum that teaches drafting skills and integrated use of the most popular statewide forms, this class offers 16 clock hours to students as they learn about real estate forms and how to use them in their business. Draft Like a Lawyer allows for students to catch up on high demand topics taught by the Legal Hotline Lawyer, Annie Fitzsimmons!

Upcoming Video Series: Industry Evolution: Important Changes in Agency Law & Forms

On October 3, 2022, there will be a forms change that will unquestionably change the way you do business, this change will impact how you are paid as a buyer broker and "if" you are paid. It is very important to be fully aware of the forms change and, to start changing your practices prior to October 3. In our upcoming Legal Hotline series, Annie Fitzsimmons sits down with Eric Johnson Broker/Owner, of Coldwell Banker Tomlinson North, to discuss best practices for success regarding these changes.  Our first episode will be released this Friday, September 2nd and will be followed by subsequent episodes the following week, so tune in and subscribe!

What will the next version of iOS mean for REALTORS®?

Apple has announced that they plan to release their new iOS 16 update in late 2022. These updates have the potential to greatly contribute to the real estate industry. iOS 16 includes a new software framework dubbed RoomPlan as an enhancement to their augmented reality technology. RoomPlan utilizes the camera and LiDAR (Light Detection and Ranging) scanner—a new type of sensor that uses lasers to judge distance and depth—to quickly create a 3D floor plan of a space.

App developers are already racing ahead of this technology to create staging and floor plan apps to utilize this technology for real estate.  Imagine the ability to create a floor plan with your phone, or take photos and erase clutter with a screen swipe. 

Did You Know?

Military Relocation Program

When military staff and their families relocate, the services of a real estate professional who understands their needs and timetables makes the transfer easier, faster, and less stressful. This certification focuses on educating real estate professionals about working with current and former military service members to find the housing solutions that best suit their needs and take full advantage of military benefits and support.  NAR offers a 10% discount on this certification, find out more below.

LEGAL HOTLINE Q & A

Question

Is there any restriction on a buyer broker giving buyer a rebate on compensation earned by broker as part of the transaction? The rebate may be given in the form of broker participating in payment of buyer's closing costs or may be given to buyer, in cash, after closing. Other brokers are reacting to this offer, arguing that buyer broker should not be offering rebates to buyer.

Answer

Neither Washington State nor federal law impose any restrictions on a broker giving any or all of their compensation to either of the principals in the transaction. Ultimately, the "rebate" is seen as nothing more than a reduction in compensation charged by the broker/firm to the consumer and the law allows a broker/firm to charge as little as the broker and firm want to charge. There can, however, be a problem with buyer's lender. If buyer is financing the transaction, buyer's lender may prohibit buyer from receiving cash incentives from anyone, including buyer's broker. Some lenders will allow broker participation in the form of paying some buyer closing costs, but prohibit cash-back after closing. If buyer's purchase is financed and if broker intends to rebate commission funds to buyer's benefit, before or after closing, buyer should disclose that to buyer's lender, in writing, so that buyer's lender can process that information as part of buyer's loan approval or declination process. It is not clear why other brokers are reacting but it may be from the standpoint of competition. If broker is offering to rebate some commission back to a buyer, other brokers may feel like they need to make a similar offer to buyers but are resistant to do so. No brokers should be engaging in conversations like this with one another except for a broker and the broker's designated broker. Any such discussion between two competing brokers, even if licensed to the same firm, risks violation of antitrust laws. Instead, the practice of rebating commissions from a buyer's broker back to the buyer is lawful and, if approved by buyer's lender, there is no reason it cannot or should not be offered. Buyer's broker should not discuss the practice with other brokers but should, instead, offer whatever commission structure is chosen by broker and approved by broker's designated broker, without regard to the concerns of competing brokers.

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MARK YOUR CALENDAR

SEPTEMBER

September 21-23

WR Fall Business Conference

OCTOBER

October 19-21

WR Leadership Conference

NOVEMBER

November 09-14

NAR Annual Convention

MORTGAGE RATES

EDUCATION OPPORTUNITIES

New Forms, Hot Topics, & Other Industry Fun

Live Webinar

Date: Monday, September 12, 2022 (and other dates)

CE Credit: 3.0

On October 3, 2022, there will be a forms change that will unquestionably change the way you do business. The change will impact how you are paid and "if" you are paid. You will be unprepared if you are not fully aware of the forms change and if you do not start changing your practices prior to October 3. The forms change bears directly on buyer broker compensation. In this class, we will discuss the facts that are driving this significant evolution within the industry, why it is important and what brokers need to do now, to be prepared and what brokers will need to do on and after October 3, 2022.

Current Issues in WA Residential Real Estate

Location: Hell's Canyon Resort, Clarkston

Date: Friday, September 2, 2022 (1:00 PM to 4:30 PM)

CE Credit: 4.0

The Washington State Real Estate Commission and the Department of Licensing have adopted rules that require the completion of a minimum 3.0 clock hours of prescribed core curriculum. The mandatory clock hours must be included in the 30 hours required for all active licensees.

Best of the Legal Hotline

Location: Hell's Canyon Resort

Date: Friday, September 2, 2022 (1:00 PM to 4:30 PM)

3.5 CE

The Best of the Legal Hotline is a fun, interactive course designed to address YOUR questions and concerns from your real estate practice. The course content is always current, because it changes from class to class based on the topics that are relevant to the students in attendance. You will receive pointers and tips that you can apply immediately to your practice to reduce your own liability and to improve the quality and success of the transactions you put together. You will gain tools to assist you in creating a more pleasant and professional experience in all of your transactions for your clients, other industry professionals and yourself. The class routinely provides information beneficial to REALTORS® of all experience levels, because all REALTORS® are well served to know the latest legal issues and how to handle them.

Current Issues in WA Residential Real Estate

Live Webinar 

Date: Wednesday, September 7, 2022 (9:00 AM to 12:00 PM) 

3.0 CE

The Washington State Real Estate Commission and the Department of Licensing have adopted rules that require the completion of a minimum 3.0 clock hours of prescribed core curriculum. The mandatory clock hours must be included in the 30 hours required for all active licensees.

#ICYMI...FRIDAY VIDEO

In Case you Missed It...

We were experiencing some technical difficulties last week, so if you missed last Friday's Legal Hotline Video, here it is...

Annie Fitzsimmons (WR's Legal Hotline Lawyer) returns with guest Shelly Schmitz (Designated Broker with Keller Williams Premier Partners) to discuss the "Perspectives on a Transitioning Market" from a Designated Broker. Listen in as Annie and Shelly go over working with Buyers in the current housing market. Be sure to like, share and follow!