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| Before you start calling or faxing
appraisers to bid on an appraisal for your latest loan or sales acquisition, ask
yourself this: Are you asking for the appraiser’s professional opinion of the
market value of that property, or do you only want an appraisal to help you
close the loan because FIRREA and the bank examiners tell you to? (I know that’s
a loaded question but I had to ask it or otherwise I wouldn’t have an article to
write!) If you only want an appraisal to help you close the loan, do you know
why you are asking for an appraisal? The appraiser is being hired to tell you --
the lender -- that you have adequate security for the loan in case the borrower
defaults..
The appraiser’s fiduciary responsibility is to make sure that, in case you have
to take the property back in foreclosure proceedings your company gets your
money back. His/her job is not to confirm for the buyer that he/she/it paid the
right price. The appraiser is working for you! Martin A. Skolnik, MAI (Marty)
has been involved with real estate valuation since 1979 and holds the MAI
appraisal designation from the Appraisal Institute. In addition, he performs
independent appraisal reviews for lenders, attorneys, and government entities on
properties throughout the United States, as either a desk reviewer or a field
reviewer. So, that said, here’s some ideas of what you, the lender, can do to
help facilitate the valuation process for the appraiser: Put in writing what you
know about the property with documentation. The appraiser will need this
information as a starting point in the appraisal process. This would include: A
copy of the pending loan Certified Residential Real Estate Appraiser - may appraise 1-4 unit residential real property without regard to transaction value or complexity in both federally related transactions (FRT) and non-federally related transactions (Non-FRT).http://www.talcb.state.tx.us/pdf/forms/requirements.pdf. May associate with a Certified General Real Estate Appraiser, who shall sign the appraisal report, to appraise non-residential properties. May associate with a Certified General Real Estate Appraiser, who shall sign the appraisal report, to appraise non-residential properties. “Provisional License” requirements are below the minimum federal requirements for licesnure under Title XI FIRREA. Approved Appraiser Trainee - must appraise real property only under the direction and supervision of their certified appraiser sponsor or authorized supervisor, who shall sign the appraisal report. Legally acquire 3,000 hours of acceptable real estate appraisal experience over a minimum of 30 months (2½ calendar years). At least 1,500 of the 3,000 hours must be non-residential real estate appraisal work. Acceptable real estate appraisal experience must:(1)comply with the Uniform Standards of Professional Appraisal Practice (USPAP) in effect at the time of the appraisal; (2) are verifiable and supported by workfiles in which the applicant is identified as participating in the appraisal process; and, (3) were performed when the applicant had legal authority; and, Successfully complete 120 classroom hours of qualifying real estate appraisal related courses (with exams) which must include ALL appropriate Appraiser Qualifications Board (AQB) required topics: 105 hours of real estate appraisal courses; 1 Non RUN DATE September 20, 2006 SPACE CLOSE August 23, 2006 MATERIALS DUE August 30, 2006 Break through the reach 1.http://www.usatoday.com/media_kit/images/usatoday/mpt_real_estate_quarterly.pdf.5 million readers with real estate valued at $500k+. Real Estate Quarterly Give your real estate message a home in USA TODAY’s first-ever, custom published section geared to communities and builders. Produced by USA TODAY’s custom publishing staff, the Real Estate Quarterly section will run as an eight-page, stand-alone piece inserted in USA TODAY’s 2.2 million daily copies. Real Estate Quarterly will highlight trends in housing developments including information on energy-efficient building, hot spots around the U.S., choosing a builder and much more. assets……$1,131,765** Reach a targeted audience with real estate interests. • Own real estate in addition to primary residence……..1.5 million • Average value of total real estate…….$608,969 REAL ESTATE BROKERS AND AGENTS Before you hire a real estate professional, it’s important to know the difference between a real estate broker and a real estate agent.http://www.ftc.gov/bc/edu/pubs/consumer/homes/zrea01.pdf. Real estate brokers are licensed professionals who assist sellers and prospective buyers of homes. Real estate agents are licensed professionals who work under the supervision of a licensed real estate broker. Real estate brokers and agents earn commissions from the services they provide. Brokers generally list your home on the Multiple Listing Service (MLS), a clearinghouse that member real estate brokers and agents use to exchange and update information on property listings, and to connect with other brokers or agents working with prospective buyers. Traditional, full-service real estate brokers working with sellers provide a broad range of services, including helping prepare the property for sale, recommending an asking price, publicizing the home to prospective buyers, arranging meetings and negotiating with prospective buyers, following up on home A broker also may help by referring the home seller to other service providers, like mortgage lenders, title companies, home inspectors, and real estate attorneys, which could make the difference between success and failure in closing a sale. Non-traditional real estate brokers often offer many of the same services as full-service brokers, but on an a la carte basis, at a reduced commission rate, or for a flat fee. HIRING A REAL ESTATE BROKER Interview several real estate brokers/agents to learn about their experience, track record, style, and market knowledge. Here are some questions to ask to help you find help you turn your property gains into community good.http://www.forgoodforever.org/Downloads/realestateMI.pdf. The value of your real estate may exceed that of any other asset you own. With the help of your community foundation, you can use it to fulfill your charitable interests and receive financial and tax benefits. How it works •You identify real estate property that you would like to give; an appraisal will help you establish its estimated market value. •We assess the real estate for compliance with our acceptance policies and gather appropriate documentation. •Your gift can be placed in any of our charitable funds. For example, you can use your gift to create a Donor Advised Fund in your name, in the name of your family or business, or in honor of any person or organization you choose. •With gifts of real estate, your property gains translate into community impact, so you get a more rewarding return on a major asset. Gift of Real Estate A gift of real estate releases potential that has been tied up for years, enables you to make a bigger charitable difference than you may have thought possible, helps you avoid estate taxes, and minimizes or eliminates burden placed on your heirs. Charitable gifts of real estate range from personal residences and vacation homes to rental properties, farmland, and commercially developed land. You may choose to give real estate outright and receive an immediate tax deduction or retain the use of the property during your lifetime and make a planned gift to your community foundation. You may also choose to convert real estate into a stream of income for the rest of your life by establishing a Charitable Remainder Trust or Charitable Gift Annuity Page 8 339.http://www.cis.state.mi.us/bcsc/forms/real/redbook.pdf.210 Contracting with persons or agencies to implement act and fulfill responsibilities of department or board. Page 28 339.522 Conducting proceedings on grievance lodged before effective date of act. Page 43 339.2506 Delivering or mailing real estate salesperson’s license to broker; display of licenses; notice of change or location; temporary license. Page 68 R339.22319 Licensure required for owner of real estate engaging in sale as principal vocation; acts constituting principal vocation; sale of real estate owned by broker or associate broker; licensee to reveal ownership or interest when selling property licensee owns or has interest in. Page 83 R339.22643 Determination of compliance with prelicensure educational requirements; submittal of documentation of courses at college or university accredited by nationally recognized agency. (ii) Not less than 75% of the annual compensation paid by the real estate broker to the associate broker or real estate salesperson is from commissions from the sale of real estate. (2) The department shall not issue a real estate broker’s license to a new applicant who has been convicted of embezzlement or misappropriation of funds. Instructors shall possess at least 1 of the following minimum qualifications: (i) Be an instructor of real estate courses who is or has been engaged in the practice of teaching at an accredited institution of higher learning. Acts constituting a principal vocation include any of the following: (a) Engaging in more than 5 real estate sales in any 12-month period. All advertising for approved real estate courses that are held out to the public Buyer Representation Agreement Date: Expiration Date: Six months from signing date.http://www.hagoodrealestate.com/pdfs/BuyerRepresentationAgreement.pdf. Buyers(s): Broker: Hagood Real Estate, Douglas Hagood (Broker/Agent) Geographic Boundaries: Spokane County and surrounding communities. 1. Agency Agreement: Buyer retains Hagood Real Estate to act as Buyers agent in the purchase of real property. 2. 3. 4. Scope of Agency and Compensation: During the term of this Agreement, Buyer agrees to use Hagood Real Estate’s services if Buyer purchases any listed property. Buyer may not use the service of another Realtor without first canceling this agreement. Rebate: Upon closing of the real estate transaction, Hagood Real Estate will issue buyer a check equal to the amount of their first mortgage payment. This rebate does not apply to homes listed by Hagood Real Estate because in the case of a Hagood Real Estate listing, the rebate is already reflected in the price since the seller is paying a significantly less commission. Termination: Buyer, Agent/Broker may terminate this Agreement at anytime by giving written notice. Buyer Signature Date In Colorado the real estate broker renders service to his/her client beyond that of merely procuring a buyer.http://www.dora.state.co.us/real-estate/manual/chap5.pdf. The remaining and most difficult question to be determined is: Should the defendants as licensed real estate brokers (none of whom are licensed attorneys) be enjoined from preparing in the regular course of their business the instruments enumerated above, at the requests of their customers and only in connection with transactions involving sales of real We feel that to grant the injunctive relief requested, thereby, denying to the public the right to conduct real estate transactions in the manner in which they have been transacted for over half a century, with apparent satisfaction, and requiring all such transactions to be conducted through lawyers, would not be in the public interest. The Court says that it will not enjoin real estate brokers from doing these simple acts, however, under the circumstances indicated, because of the Court's express belief that the public's best interest will be served by continuing the present practice. There must be a careful determination and application of what is authorized practice of law by a real estate broker. In the years following the Conway-Bogue decision, the business of real estate practice grew rapidly. In 1993, the legislature gave the Commission statutory authority to promulgate standard forms for use by real estate licensees. In the area of listing and conveyancing covered by Rule F, it is to the advantage of the general public and of real estate licensees to use the Commission approved forms. The Court mentioned that the defendants actively solicit There are three steps to obtaining an active Texas real estate salesperson license.http://www.trec.state.tx.us/pdf/forms/real-est/SL-10.pdf. (1) Obtain a letter from TREC attesting to satisfaction of all education requirements. (3) Arrange for a Texas real estate broker holding an active license to sponsor you as a salesperson. Applicants and inactive salespersons are not authorized to act as real estate agents. Once an inactive license has been issued, you must obtain an active license under the sponsorship of a licensed broker to practice real estate brokerage. 10. Have you ever been licensed in Texas as a real estate salesperson or broker? 11. Have you been licensed as a real estate salesperson or broker in a state other than Texas within the last five (5) years? 15. Have you ever acted, or attempted to act, as a real estate broker or salesperson or appraiser in this state or in any other state at a time when not properly licensed? (Include all periods in which you acted either before obtaining a license or after a license may have expired.) Most applicants must also pay a $10 fee which is deposited into the real estate recovery fund. Please submit ONE cashier’s check, personal check, or money order for $79.50 ($69.50 if you have previously paid the recovery fund fee) payable to the Texas Real Estate Commission. I authorize the Texas Real Estate Commission to conduct any investigations of me which it deems prudent. If granted a license, I will abide by the provisions of The Real Estate License Act and the Rules of the Texas Real Estate Commission. I will not act as a real estate agent for the broker until after the broker has received my active real 1.http://www.trec.state.tx.us/pdf/forms/real-est/BL-8.pdf. To be eligible to apply for a real estate Broker License, you must be a citizen of the United States or a lawfully admitted alien, eighteen (18) years of age or older and a legal resident of Texas. If the applicant is a resident of another state, the applicant must be licensed by that state as a real estate broker. 2. To be eligible to apply for a real estate Broker License, you must furnish the Commission satisfactory evidence of successfully completing the following: A. Not less than two (2) years active experience in Texas as a licensed real estate salesperson or broker during the 96 month period immediately preceding the filing of the application; or B. If licensed as a broker in another state, not less than two (2) years active experience as a licensed real estate salesperson or broker during the 36 month period immediately preceding the filing of the 4. To be eligible to apply for a real estate broker license, you must first obtain a letter from the Commission attesting to satisfaction of all education requirements. A copy of this form is included in this packet with the application. Please submit copies of your transcripts or course completion certificates with your request for evaluation. DO NOT submit original documents. 5. A fee of $20.00 is required for an evaluation of education documents, unless you obtained an evaluation in the past 12 months and paid the fee at that time. Have you ever been licensed in Texas as a real estate salesperson or broker? 13. Have you been licensed as a real estate salesperson or broker in a state other than Texas within the last six (6) years? 17. Have you ever acted, Pennsylvania Law requires real estate brokers and salespersons (licensees) to advise consumers of the business relationships permitted by the Real Estate Licensing and Registration Act.http://www.realestatehanover.com/pdfs/consumer_notice.pdf. This notice must be provided to the consumer at the first contact where a substantive discussion about real estate occurs. Before you disclose any information to a licensee, be advised that unless you select an agency relationship by signing a written agreement providing for such a relationship, the licensee is NOT REPRESENTING YOU. A business relationship of any kind will NOT be presumed but must be established between the consumer and the licensee. Any licensee who provides you with real estate services owes you the following duties: • Exercise reasonable professional skill and care, which meets the practice standards, required by the Act. • Present, in a timely manner, all offers, counteroffers, notices and communications to and from the parties in writing. The duty to present written offers and counteroffers may be waived if the waiver is in writing. • Comply with Real Estate Seller Disclosure Act. • Disclose all conflicts of interest in a timely manner. • Provide assistance with document preparation and advise the consumer regarding compliance with laws pertaining to real estate transactions. If you enter into a written agreement, the licensees in the real estate company owe you the additional duties identified above under seller agency. In designated agency, the employing broker may, with your consent, designate one or more licensees from the real estate company to represent you. OTHER INFORMATION ABOAUT REAL ESTATE PCC’s Real Estate Program offers classes to train brokers, ap-praisers and property managers.http://www.pcc.edu/about/catalog/re.pdf. Real estate brokers represent buyers and/or sellers in real estate sale/lease transactions. PCC offers courses that give students an introduction to the field of real estate as well as basic and advanced real estate investment. Brokers must satisfy the Oregon Real Estate Agency requirements for a broker’s license. PCC offers pre-license courses approved by the Oregon Real Estate Agency for the real estate broker license. PCC also offers the Real Estate Advanced Practices post-license course which is required of all real estate brokers prior to their first license renewal. Real estate appraisers, depending upon which license or certifica-tion is earned, may specialize in valuing simple single family resi-dential, complex residential, or income producing properties. PCC offers pre-license/certification courses for real estate appraisers. Property managers are responsible for overseeing the management of such properties as single family residences, duplexes, apartments, condominiums, office or retail buildings, and other types of income producing real estate. PCC offers pre-license courses approved by the Oregon Real Estate Agency for the real estate broker and prop-erty manager licenses. Property managers must satisfy the Oregon Real Estate Agency requirements for a property manager’s license. Students are advised to confirm the current license/certification requirements with the Oregon Real Estate Agency, Oregon Appraisal Certification and Li-censure Board or PCC before making any course commitments. Focuses on these aspects This recommendation was ultimately supported by the North Carolina Bar Association’s Real Property Section, a voluntary organization representing hundreds of lawyers engaged in real property practice, as well as the two federal agencies that originally sought reconsideration of the State Bar’s position.http://www.nala.org/03_NC_OP_9_realestate.pdf. Opinion rules that a nonlawyer assistant supervised by a lawyer may identify to the client who is a party to such a transaction the documents to be executed with respect to the transaction, direct the client as to the correct place on each document to sign, and handle the disbursement of proceeds for a residential real estate These opinions, together with Formal Ethics Opinion 99-13, rule that competent legal practice requires the physical presence of the lawyer at the closing conference for both a purchase and a refinancing of residential real estate. In connection with a residential real estate transaction, a lawyer is retained to ensure that the documents are properly executed and that the loan and sale proceeds are properly distributed, in addition to other services, if any, that the lawyer is retained to provide. 1. It is already common for lawyers, exercising their sound legal discretion, to delegate to their nonlawyer assistants certain other tasks in connection with a residential real estate transaction, such as the search of the public records and the recording of documents. May a nonlawyer handle a residential real estate closing for one or more of the parties to the transaction? No. Residential real estate transactions typically involve several phases, including the following: abstraction maintains City-owned real estate to develop and stabilize neighborhoods and promote business growth.. responsible for the intake and maintenance of City-owned property Surplus Sales manages the disposition of surplus City-owned properties to citizens and investors dedicated to the revitalization of city neighborhoods. he Real Estate Division handles the sale of the following types of properties: vacant lots vacant residential and commercial structures occupied residential structures To qualify, purchasers must be: current in city and county real estate taxes able to submit supporting documents specified by sale program requirements DIVISION In residential areas, the City gives priority to owners of adjacent structures for the sale of single lots that have a frontage of 50 feet or less. Homeowners on both sides of the vacant lot can split one lot. If neither adjacent owner is interested in purchasing the lot, the lot may be sold through public sale to a neighborhood resident, community group or other purchaser with a vested interest in the neighborhood. STRUCTURE Each month, the Real Estate Division publishes a list of surplus residential properties. Properties are sold to the highest bidder. Successful bidders are required to: BASIS SALE If no acceptable offers to purchase are received for a property in the bid sale, the property is sold on a first-come basis in a following month. These properties may be owner-occupied or used as investment properties. | ||
