FIgHTINg FOR REALTORS®

Transcription

REALTOR
UTAH
®
OFFICIAL MAGAZINE OF THE UTAH ASSOCIATION OF REALTORS® • fourth quarter 2012
Fighting for
®
REALTORS
2013 Utah legislative session preview
PAGE 18
Legal slip-ups
to avoid
Page 10
Buying after
foreclosure
Page 23
UTAH
REALTOR
9
departments
2
Utah real estate optimism
is growing.
Happenings
Utah REALTORS® earn the
prestigious President’s Cup
from the National
Association of REALTORS®.
2013 UAR President
Cal Musselman, GRI, SSS
UAR Chief executive officer
Christopher J. Kyler, J.D.
economic
Ogden tops affordability
list, 2013 home price
forecast and improvements
to FHA condo rules.
Executive editor
Deanna Devey, [email protected]
Utah Association of Realtors®
230 W. Towne Ridge Parkway, Suite 500
Sandy, UT 84070
(801) 676-5200 · (800) 594-8933
www.UtahRealtors.com
legal
Avoid the three most
common ways that agents
mess up their transactions.
ETHICS
Learn how to file an ethics
complaint and what to do if
you receive one.
MLS
What is a dual/variable rate
commission? Plus, what
REALTORS® need to know
about property boundaries.
Quiz
Boomerang buyers: How
long does it take to get
back in the market after a
foreclosure or short sale?
utah Realtor® • www.UtahRealtors.com
Publisher
Matt Bennett, [email protected]
FEATURE
Fighting for
REALTORS®
EditorS
Jeanette Bennett, [email protected]
Greg Bennett, [email protected]
18
ART DIRECTOR
Leah Aldous, [email protected]
Advertising Representative
John Stemmons
The Utah Legislature will be back in session in January, and
already there are proposals that would impact REALTORS®. Use
our legislative preview to get the latest information on possible
changes that could affect you.
ADVERTISING INFORMATION
(801) 802-0200
424 W. 800 North, Suite 201
Orem, UT 84057
REALTOR
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President’s Message
UTAH
10
13
15
®
Utah REALTOR® magazine is published
by Bennett Communications, Inc.,
and is distributed to all members and
affiliate members of the Utah Association of Realtors®. The contents of
this publication are copyrighted 2012,
all rights reserved, and may not be
reproduced in any manner without
permission from the publisher and
the Utah Association of Realtors®.
Articles in Utah REALTOR® do not
necessarily reflect the views or policies
of the Utah Association of REALTORS®.
Address corrections for members of
the Utah Association of REALTORS®
should be sent to your local board of
REALTORS®.
fourth Quarter 2012
7
president's message
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REALTOR
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UTAH
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table of contents
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Utah real estate
optimism growing
by Cal Musselman, GRI, SSS · 2013 UAR President
I
f you have been an active REALTOR® in
Utah, you may have felt the winds of change
stirring for quite some time now. Every time
I have asked one of my fellow REALTORS®
how their business is doing, the response has
ranged from positive to ecstatic.
It turns out the cautiously optimistic and overtly
positive attitudes have justification. October
marked the 17th consecutive month home sales
have increased compared to the same month a year
earlier. That kind of continued improvement in
units sold is an undeniable sign of a market change.
When you look at some of the other statistics, the
changing market becomes even more apparent.
With the continued upswing in units sold, we are seeing lower and lower inventory
levels. In fact, supply is now at six months, which is indicative of a seller’s market.
We have not seen a six-month inventory supply since January 2007. That seems like
a long, long, long time ago.
This year did not start off so positive though. We saw upticks in units sold continuing from 2011, but we were also seeing values continue to trend down. In fact,
from the market high in 2008, values had fallen a whopping 32 percent. It was painful to watch and to experience.
That being said, it does seem that we saw the bottom in January of this year. We
have since had continual improvement in values, with a total increase of 2.9 percent
from January to October. That is modest, but it’s healthy and certainly sustainable.
As hard as it was to have such a large decrease in value, there is one wonderful
side effect, affordability. In fact, for the Utah family making the median income,
they earn 174 percent of what is necessary to qualify for the median-priced Utah
home. That is amazing and an extremely healthy market indicator. The major
impact on affordability is the historically low (maybe a better description would be
“ridiculously low”) interest rates. Yes, the low interest rates have been our saving
grace.
So, will it continue? That’s a question I hesitate to speculate on, but there are
plenty who will. Most are predicting market factors that are positive for Utah.
NAR is forecasting that interest rates will rise due to inflationary pressures but only
marginally. We could see as high as 4 percent in 2013 and 4.6 percent in 2014. I can
speak only for myself but if that is as high as they go, I’ll be as happy as a monkey
with a peanut machine.
Both NAR and Fiserv Case-Shiller are predicting that the U.S. housing market
will see price increases of 5 percent in 2013, and hold on to your hats Salt Lake
REALTORS®, because Fiserv Case-Shiller is predicting an 8.9 percent increase in
the Salt Lake City market.
All in all, it seems the winds of change have blown us in the right direction. I remain
cautiously optimistic about our state’s real estate market, and I remain overtly positive
about the toughness, the goodness and the passion of the Utah REALTOR®.
Thank you my fellow REALTOR® for being who you are. You are the best of the
best. Every day I become more and more proud of my profession and that’s because
of you and your passion for what we do.
www.UtahRealtors.com • utah Realtor® 3
UTAH
REALTOR
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UTAH
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Happenings
President’s Cup
REALTOR
®
UTAH
REALTOR
happenings
happenings
Local Associations on the Move
Pictured from left to right: Jim Smith (Peace House board of directors chair), Judy White,
Sandra Vogt (Luxury Home Tour Committee chair), Jane Patten (Peace House executive
director), Marcie Davis (PCBR treasurer), Jim Lea (PCBR Philanthropic Foundation), Tami
Whisker (PCBR president) and Curt Singleton (PCBR association executive).
New UAR short
sale forms
T
Form 20: Short Sale Addendum to the
Real Estate Purchase Contract
Form 20B: Acknowledgement of
Third Party Approval Addendum
Utah REALTORS® receive the President’s Cup at the annual meetings of the National Association of
REALTORS®. From left: Cal Musselman, Christy Vail, Corry Sue Cutler, Rick Southwick, Jim Bringhurst,
Lori Chapman, Chris Kyler, Robert Bolar, Ryan Kirkham, Hilea Walker, Mark Shepherd, Kris Furrow, Lisa
Jungemann and Lana Ames.
The UAR extends a big thank-you to
2012 UAR President Lori Chapman and
2012 State RPAC Fundraising Chair Jim
Bringhurst for all their efforts to receive
this award. The UAR also thanks each
of the local boards and their presidents
and RPAC fundraising chairs for all
their work to achieve the award.
Save the
date for 2013
UAR events
NAR Political Liaison Marbury Little
recognizes Utah RPAC fundraising
accomplishments at the RPAC State
Awards Ceremony at NAR’s annual
meetings in Orlando, Fla. From left:
Marbury Little, Justin Allen, Jim Bringhurst and Lori Chapman.
4
Save the date for the following 2013
UAR events.
Feb. 22: REALTOR® Day at the
Legislature, Little America, Salt
Lake City
June 17-18: Rally Ride for RPAC
Sept. 3: RPAC Golf Tournament
Sept. 3-5: Convention, Montage
Deer Valley, Park City
As these events approach, look for
more information at UtahRealtors.com.
New real estate
commissioners
G
ov. Gary Herbert has appointed two former presidents of the Utah Association of REALTORS® as real
estate commissioners. Russ Booth,
with Coldwell Banker Commercial
NRT in Salt Lake, and Lerron Little,
with Capstone Real Estate in Provo,
will both serve terms on the state’s
Real Estate Commission.
The Utah Real Estate Commission
is dedicated to providing consumer
protection and is in charge of creating administrative rules regarding the
practice of real estate in Utah. Five
people with staggered four-year terms
serve on the commission. Four are
real estate licensees and the fifth is a
member of the public.
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T
he Utah Association of REALTORS® has earned the
prestigious President’s Cup for
the second year in a row. Each
year, the National Association of REALTORS® honors state associations that
meet a variety of advocacy and RPAC
fundraising goals.
®
Park City Board of REALTORS®
REALTORS® raise more than
$100K for charity
T
he Park City Board of REALTORS® has raised more than
$100,000 for charity in 2012,
the result of three fundraising
events: a turkey drive, golf tournament and
home tour.
Last year, the money raised from the
Turkey Drive purchased almost 1,700
turkeys.
“Since 2001, the Turkey Drive has
provided a Thanksgiving dinner to over
80,000 people statewide. The Park City
Turkey Drive is the single largest contributor of turkeys in Utah,” said Deb Hartley,
committee chair.
A second event was the PCBR Philanthropic Golf Tournament and silent
auction, held in September at Red Ledges.
The tournament raised nearly $35,000 for
the Children’s Justice Centers of Wasatch
and Summit Counties.
“We have a very generous community
and board of REALTORS®. For them to
step up during these uncertain economic
times speaks to the importance of these
operations in our community. The funds
will go a long way to help children who
have been victims of or witnesses to physical and/or sexual abuse,” said Jay Sheridan,
event chair.
The Luxury Home Tour and Auction,
held in August at The Colony and held in
June at La Caille, raised almost $93,000
for locally operated Peace House.
“PCBR is proud to have continued to
support Peace House for over two decades. Members have given thousands of
hours and more than doubled the financial
support over the last several years. The
partnership with Peace House has been
heart-warming and rewarding work,” said
Committee Chair Sandra Vogt.
Uintah Basin Board of REALTORS®
REALTORS® raise nearly 300 percent of RPAC goal
T
he Uintah Basin Board of REALTORS® crushed their yearly
RPAC goal of $3,301 in a matter
of hours during their March RPAC auction, raising a total of $4,988. For 2012,
the Board raised more than $9,300,
putting them at 282 percent of their
UAR goal. Uintah has a total of 101 members and
hopes to reach 100 percent RPAC par-
REALTOR
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he UAR has revised and created
several forms to help clarify
and streamline the short sale
process. Download the following forms
at UtahRealtors.com/forms. Also included is an article with directions on
how to use the forms.
®
ticipation. They account for five of the
173 Utah major investors for 2012. “We are currently trying to educate
our new agents so they are fully aware
of the importance of contributing,”
said Paris Anderton, 2013 president.
“We have had some great leadership in
the past who have taught us both the
importance of RPAC and lobbying for
property rights.” Wasatch County
Association of REALTORS®
2013 leadership
From left: Jeff Findarle (president-elect), Rick
Southwick (UAR president-elect), Mark Davis
(director), Suzanne Russell (director), Marcia Young
(director), Rene Wood (president), Lisa Christen
(past president) and David Bellessa (director).
T
he Wasatch County Association
of REALTORS® has sworn in
its 2013 officers. Rick Southwick, president-elect of the Utah Association of REALTORS®, installed the
newly elected officers at the annual
installation ceremony and luncheon.
“I am honored to lead this association,” said Rene Wood, newly
installed president. “During my time
as president-elect, I was able to get
to know so many of our members and
have come to realize what an amazing
group of real estate professionals we
have in Wasatch County.”
Pictured are 2012 UCAR President Stephanie
Vincent and her husband, Steve, with Gary and
Jeanette Herbert at the event.
Utah County Association
of REALTORS®
15-year members
honored
U
CAR hosted a special reunion
on Oct. 2 for all REALTORS®
who have been members of
the local board for at least 15 years.
Gov. Gary Herbert, who served as
UCAR president in 1985, was the
evening’s special guest.
UTAH
®
Craig Morley presents Cindy Campbell with an
end-of-year plaque in appreciation for her service
as president in 2012.
REALTORS gather at the groundbreaking ceremony for the 2012 Have a Heart home.
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Northern Wasatch Association of REALTORS®
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REALTORS provide home to
family with special-needs child
T
he Northern Wasatch Association of REALTORS® and
the Northern Wasatch Home
Builders Association provided
an early Christmas when they presented
their 20th Have a Heart Home in late
November to a family with a specialneeds child. The home, located in Pleasant View, is custom-built and wheelchair
accessible, which will accommodate the
family’s 4-year-old daughter.
Currently in its 12th year, the Have a
Heart program builds new, significantly
discounted homes for low-income,
military and special-needs families.
A groundbreaking took place in
August, and the home was constructed
with features such as a front-door ramp
and wider hallways and doors. Mainline
Construction built the house, Bank
of Utah donated the building lot and
Pleasant View City waived the permit
fees.
Shawn Janke, 2012 NWAR president, told the Standard-Examiner the
program is a way that various organizations can give back to the community.
REALTORS® participated in a variety of
fundraising projects to make this year’s
home possible.
economic
update
REALTOR
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UTAH
REALTOR
happenings
economic
Forecast: Utah home price
increases to continue
Washington County Board
of REALTORS®
New leadership
T
T
wo significant events occurred
recently in Washington County.
First, the Board’s annual Installation Banquet celebrated 2012’s successes
under President Cindy Campbell, and
incoming President Craig Morley previewed his goals for 2013.
A second event focused on the election year. WCBR and the Southern Utah
Home Builders Association hosted a
Meet the Candidates Forum dedicated
specifically to real estate-related topics
and issues.
Salt Lake Board of REALTORS®
2013 directors
installed
he recent trend of rising home
prices is expected to continue
in the coming years, according to a new analysis based on
the Fiserv Case-Shiller Indexes. Fiserv
forecasts the pace of Utah home price
increases will slow in the first half of
next year and accelerate during the second half of 2013 and into 2014. In fact,
Utah home prices will increase nearly
7 percent from mid-2013 through the
second quarter of 2014.
“The real estate market in the spring and
summer of 2012 was the strongest since the
peak of the bubble,” said David Stiff, Fiserv
chief economist. “There is now strong
evidence for a slow, sustainable recovery on
both the supply side and the demand side.”
Although Fiserv reports several obstacles
that could stall short-term appreciation,
including the “fiscal cliff” and a drop-off in
investors, the organization says the housing
market recovery will continue during the
second half of 2013.
“Housing affordability has never been
better and the Federal Reserve’s third
round of quantitative easing should keep
mortgage interest rates low for at least
another two years,” said Fiserv in a statement. “Following the 2012 presidential
election and the resolution of the fiscal cliff,
overall economic growth is also expected
to accelerate. As consumer confidence improves and people become convinced that
home prices have stabilized, demand from
first-time and trade-up buyers will return
to normal, ensuring a sustained market
recovery.”
Iron County Board of REALTORS®
Area
REALTORS® provide holiday
dinners for families in need
The Salt Lake Board of REALTORS® has installed
its 2013 directors. From left: Dave Robison,
Craig Hawker, Jared Booth, Angie Domichel
Nelden, Troy Peterson, Cheryl Acker, Jake
Breen, Lisa Jungemann, Kim Farber-Lynch and
Shirley Jacobson. Pictured in back is installing
officer Robert Farnsworth. Not pictured: Dave
Frederickson, Donna Pozzuoli, Michael Rowe,
Adam Kirkham, Mike Morgan and B. Thomas
Colemere.
Forecast Change
in Prices 2013:
Q2 to 2014: Q2
Annualized
Change in
Prices 2012: Q2
to 2017: Q2
United States
0.3%
3.4%
3.3%
Utah
2.3%
6.9%
4.1%
Salt Lake
3.7%
11.6%
6.3%
Provo-Orem
-1.3%
6.8%
3.8%
Ogden-Clearfield
-2.6%
5.9%
4.1%
St. George
-3.3%
3.4%
2.4%
Logan
0.4%
5.0%
3.4%
ª Fact
Housing
demographics
changing
From 2010-2030, Utah’s peak
housing demand (44 percent)
will come from buyers
years old. In Salt Lake
County, however, peak housing
demand (49 percent) will come
from downsizers
Nationally,
downsizers will account for 67
percent of all housing demand.
35-64
65 years
and older.
Source: Arthur Chris Nelson, Metropolitan
Research Center, University of Utah,
speaking at the Ivory Institute
Source: Fiserv
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dinner, including everything from turkey to dessert.
For Christmas, brokerages provided a
dinner as well as a gift for each member
of the adopted family. At press time, ICBOR members had adopted 17 families.
Iron County REALTORS® say they are
grateful for the opportunity to give back
to friends and neighbors in the community who are in need.
UTAH
T
he Iron County Board of REALTORS® has embarked on a
new charitable program to aid
the financially burdened members of Cedar City and the surrounding communities. As part of the effort,
brokerages and their agents volunteered
to “adopt a family” for Thanksgiving
and Christmas. For Thanksgiving, the
brokerages provided a complete holiday
Forecast Change
in Prices 2012:
Q2 to 2013: Q2
Fast
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economic
economic
Ogden tops housing
affordability list
Utah No. 6 for
price increases
U
tah has the sixth-best housing
market in the country, says
the government agency that
regulates Fannie Mae and
Freddie Mac. Home prices statewide
have gone up 8.63 percent since last
year’s third quarter. That’s the sixthhighest increase in the U.S., according
to the Federal Housing Finance Agency.
The only areas to have stronger price
gains were Arizona (up 20.06 percent),
the District of Columbia (up 15.53 percent), Idaho (up 9.57 percent), North
Dakota (up 9.23 percent) and Nevada
(up 8.66 percent). The lowest-ranking
state was Maine where prices fell 2.58
percent over the past year.
Generally speaking, prices increased
the most in the Western states while the
U
enviable combo: Incomes are 10 percent higher than the national median,
while home prices are about 14 percent
lower.”
Nationally, 74.1 percent
of homes sold in the third
quarter were considered
affordable to families earning
the median household income
of $65,000.
“The median price of all new
and existing homes sold in the
third quarter was $189,000,
which was up from $176,000
in last year’s third quarter
and the strongest number
we’ve seen since the final
three months of 2008,” explained NAHB Chief Economist David Crowe. “But at the
same time, mortgage rates were at
their lowest levels in decades, which kept homes
quite affordable.”
Area
Housing
Opportunity Index
Median Price
Median Income
% Change in Affordability
from Q3 2011
Ogden-Clearfield
93.2
$153,000
$71,500
3.8%
Provo-Orem
84.8
$212,000
$67,100
3.5%
Salt Lake City
80.8
$214,000
$71,300
2.4%
St. George
71.1
$202,000
$57,100
-7.1%
National
74.1
$189,000
$65,000
1.6%
8
1-Year
Quarter
Five-Year
U.S.
--
4.04%
1.08%
-15.37%
Utah
6
8.63%
1.91%
-19.53%
St. George
7
4.14%
3.72%
-34.67%
Salt Lake
26
2.46%
2.44%
-17.87%
Provo-Orem
55
1.36%
0.61%
-23.04%
-0.12%
1.35%
-13.93%
Utah on improving markets index
“While some counties saw increases
in home prices in 2012, no loan limit increases were evident after other HERA
terms such as the statutory ceiling and
floor were taken into account,” the
Federal Housing Finance Agency said in
a statement.
REALTOR
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State or Metro Rank
Source: Federal Housing Finance Agency
Fannie, Freddie loan limits unchanged
counties in Utah, the maximum loan
amount will stay at $417,000.
The loan limits are determined each
year based on the median home values
in local areas and under the terms of the
Housing and Economic Recovery Act of
2008.
Area
Ogden-Clearfield 159
Source: National Association of Home Builders/Wells Fargo Housing Opportunity Index
he Fannie Mae and Freddie Mac
regulator has announced that the
maximum conforming loan limits
will remain at existing levels in 2013. In
Salt Lake, Summit and Tooele counties,
the $600,300 limit for one-unit properties will be unchanged. For all other
worst-performing areas were the Northeast and Midwest. Prices in the U.S. as a
whole rose about 4 percent.
St. George was also a top performer,
ranking seventh among 285 metropolitan areas. For the year ended September 30, prices were up more than 4
percent.
Although Utah has had strong price
gains in the past year, home values are
still feeling the effects of the housing
downturn. Over the past five years,
Utah prices are down 19.53 percent.
Over the long run, however, Utah housing prices have increased significantly,
up about 159 percent since 1991. That
means a house purchased 21 years ago
has nearly tripled in value, even with the
recent decline in home prices.
House Price Appreciation for the Period Ended Sept. 30, 2012
®
T
he recent rise in Utah home
prices is just one sign that real estate markets are recovering. The
National Association of Home Builders/
First American recently recognized the
state’s housing market improvement
by placing Salt Lake and Provo on its
Improving Markets Index. St. George,
which had already been on the list,
remained a part of the index.
Only cities that show consistent
improvement in three key indicators
(housing permits, employment and
home prices) are placed on the list, and
REALTOR
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tah home prices are rising —
but so is affordability. This
rare phenomenon, the result
of record-low mortgage rates,
has put Ogden at the top of a national
list that measures housing affordability.
The National Association of Home
Builders and Wells Fargo recently
named Ogden-Clearfield the most affordable major housing market in the
country in the third quarter. This is
the first time Northern Utah has ever
topped the Housing Opportunity Index.
Of the new and existing homes sold
from July to September, 93.2 percent
were considered affordable to a family
making the area’s median household
income of $71,500. That’s the highest
percentage of affordable homes since
NAHB began tracking the OgdenClearfield metro in 2006.
CNN Money, which reported on the
story, mentioned the advantages of
buying in Ogden: “The city offers an
®
cities are removed when they fail to
perform.
“This new high point for the Improving Markets Index provides the latest
evidence that housing has turned a corner due to rising demand from consumers who are increasingly confident about
the direction of local home values,” said
Kurt Pfotenhauer, vice chairman of First
American Title Insurance Company.
Since the trough, home prices have increased 7 percent in Provo, 6.5 percent
in Salt Lake City and 6.2 percent in St.
George, according to the index.
FHA condo
changes may
boost loan
availability
T
he Federal Housing Administration has made several changes that may make it easier for
buyers to get FHA loans for condos in
mixed-use projects. The new requirements, which were enacted in September, allow an investor to own up to 50
percent of the total units, compared
to 10 percent previously, as long as the
rest of the condos are owner-occupied.
The changes also allow FHA loans in
mixed-use developments where up to
35 percent of the space is commercial,
compared to a 25 percent limit previously. FHA said it may grant exceptions for projects with up to 50 percent
commercial space.
Fast
ª Fact
From 2013-2020,
Utah will build
150,000-160,000
new residential units.
Source: James Wood, Bureau of
Economic and Business Research,
University of Utah, speaking at the
Ivory Institute
UTAH
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legal
There are no grace periods beyond the
deadlines. As a buyer’s agent, you must be on
top of these deadlines; otherwise, your buyer’s
earnest money could be in jeopardy.
Transaction
slip-ups
W
e love the transactions that go along without a hitch, or when there is
a hitch, the parties are able to sit down and work it out easily. This is
not an article about those transactions. This is an article about three of
the most common ways that agents mess up their transactions. These
are the issues I hear about again and again on the Legal Hotline.
This article is designed to help you prevent these problems. In no particular
order, I’ll discuss the issues and point out ways to avoid these complications in the
future. Let’s get started.
Issue #1 – Ignoring deadlines
Missing deadlines in the Real Estate Purchase Contract is a big deal. With the
2008 revisions to the REPC, the deadlines are now final at 5 p.m. Mountain time
on the deadline day. That means everything relating to that deadline needs to be
resolved before then.
There are no grace periods beyond the deadlines. As a buyer’s agent, you must be
on top of these deadlines; otherwise, your buyer’s earnest money could be in jeopardy. Here is a typical scenario we hear on the Legal Hotline:
Bob Buyer is under contract to purchase a home from Sally Seller. In the REPC,
in Section 24, Bob has listed Dec. 18 as his Financing & Appraisal Deadline. It is
Dec. 16, and Bob has qualified for the financing for the purchase price amount and
an appraisal has been conducted. But Bob still hasn’t heard back from his lender
regarding the appraisal. Bob doesn’t anticipate any problem, so he does nothing and
waits to hear from his lender.
He is surprised on Dec. 19 when his loan officer tells him the lender will not fund
the amount Bob needs to purchase this property. The lender points to some irregularities with the appraisal as the reason. Bob wants to cancel the purchase contract
and get his earnest money back.
Is Bob going to get his earnest money back? Probably not. If you are Bob’s agent,
you can ask the seller, but Bob is beyond his Financing & Appraisal Deadline.
Therefore, he cannot cancel based on the financing condition — even if the lender
was to blame. It is Bob’s responsibility to come up with the funds for the purchase.
He is subject to the deadlines in the REPC, not his lender.
With so much at stake, what can a buyer’s agent do to prevent such a scenario?
If there is any question as to whether or not your buyer will need to cancel based on
one of the conditions, but you won’t know until after the deadline has passed, then
you need to address this issue by either extending the deadline through an addendum or canceling the REPC before the deadline.
Using the Contingent Cancellation Addendum form would be a great option in
this scenario. It allows you to ask for an extension, and if you don’t get it, then the
addendum serves as a written cancellation of the REPC. If you do not extend the
deadline, you are putting your buyer’s earnest money at risk should the buyer later
realize he needs to cancel the contract based on the contingency.
Most common real estate mistakes and how to avoid them
BY Peter J. Christensen, J.D. · UAR legal counsel
Issue #2 – Allowing a seller to stay after closing
without a lease
Every now and again, the sellers need a few extra days to stay in the property.
Whether they need an extra week to get moved out or they are waiting for their
next home to be finished, there can be some complications when sellers stay in the
property. Here is the scenario:
Sally Seller has sold her home to Ben Buyer. Sally is waiting for the last semes-
REALTOR
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A little extra effort and foresight at the
beginning of a transaction can keep
clients happy long after closing.
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legal
ter of grad school to end before she
moves. She will need to stay in the
home three weeks after closing. Ben
isn’t in a hurry to move, so he verbally
agrees to let Sally stay for the three
weeks.
During week two, the furnace breaks
and Sally calls Ben to come fix it. Ben
tells her that she is responsible for the
repair because she hasn’t delivered the
property to him. Sally tells him that
as her landlord, he is responsible for
major repairs.
While Ben is inspecting the furnace,
he notices that the stained-glass window in the entrance of the home has
been damaged since he did his final
walk-through a couple of weeks ago.
He tells Sally that she is going to be
responsible for fixing that as well. Sally
tells him that because the sale has
funded and recorded, he is responsible
for repairing any damage that happens
after closing.
The three weeks go by and Sally
is not ready to leave, since she just
didn’t have time to pack. She takes an
additional five days to move out of the
property. However, Ben had already
made arrangements to be out of his
current place at the end of the three
weeks. He is forced to stay in a motel
for those five days while Sally moves
out.
Ben tries to get Sally to pay for the
repairs and for his motel bill, but Sally
refuses. Ben did not ask for a security
deposit and his purchase money has
already funded and is in Sally’s bank
account.
If you were Ben’s agent, what could
you have done to avoid this mess?
This situation comes up from time to
time and can have a happy ending. No
matter how reasonable and friendly
the parties, I would always advise having a written lease in place. This may
seem like overkill for just a few days,
but it provides the most protection for
both parties.
A seller staying in the property beyond closing isn’t really contemplated
in the REPC, but a lease will deal
with the issues specific to that situation. These include security deposits
(for damages caused during the rental
period, rent not paid, etc.), term of the
In Section 1.1 of the REPC, there
is a list of “included items” that will
stay with the home after the sale. In
Section 1.2 of the REPC, there are
optional items that can be singled out
to be included. If they are not checked
as included, they will not be part of
the sale of the property. Furthermore,
Section 1.3 provides a place to indicate
what items will be excluded.
Even with all of those sections
dedicated to clarifying what will and
will not be included, the UAR’s Legal
Hotline still receives many calls on this
issue. Here is a typical situation:
Sam Seller is selling his home to
Betty Buyer. In his bathroom, he has
a mirror with a frame, which he built
from reclaimed wood from a railroad
bridge his great-grandfather built. This
mirror has great sentimental value to
Sam, and he is not intending to include
it with the sale of his home.
Sam does not mention the personal
value of this item to Betty, nor does
he specifically exclude it on Section
1.3 of the REPC. After closing, Sam
gets a call from Betty’s agent asking
him to return the mirror. Sam lets her
know the unique nature of the mirror
and tells her he will not be returning
it. He explains further that he never
indicated that it would stay in the
home. Betty’s agent counters by telling
him that Section 1.1 of the REPC lists
“bathroom mirrors” as included items.
After speaking with Betty, her agent
tells Sam that they do not expect him
to part with his family heirloom but
Betty would like Sam to pay for the replacement, which will cost $600. Sam
is blown away at this price and refuses.
He believes that because the mirror
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Editor’s note: This article is for information purposes only and is not intended to
provide legal advice. If you need specific legal advice, please consult with your attorney.
REALTOR
®
ethics
The person filing the complaint
has the responsibility to prove that
a violation of the Code of Ethics
occurred.
UAR ethics process
Learn how to file a complaint and what to do
if you receive one
Hot off the Hotline
Buyer-Broker Agreement
By Kreg E. Wagner, J.D. · UAR associate legal counsel
M
any REALTORS® are unfamiliar with the UAR’s ethics complaint
procedures. In this article, I hope to add clarity to the entire process
and set expectations for all parties involved.
First and foremost, the UAR’s complaint process is the exact procedure the National Association of REALTORS® endorses. It is set up to allow both
parties involved ample opportunity to present their view of what allegedly transpired.
Question:
In Section 1 (Term of Agreement) of
the Exclusive Buyer-Broker Agreement
& Agency Disclosure form, there are
two blanks where an agent can list a
county or a property address. How
should an agent and buyer fill out
this section if the agreement is
meant to be property-specific?
Filing a Complaint
If you feel another REALTOR® has violated the Code of Ethics, there is an official process to address the issue. To file a complaint, all you need to do is fill out
the one-page ethics complaint form, which is found on UtahRealtors.com, attach
a narrative of what transpired and send it to the UAR. If available, the narrative
should include any supporting documentation (e.g., emails, text messages, purchase
contracts, listing agreements, etc.). The more information and detail your complaint
contains, the easier it will be for the Grievance Committee to forward your complaint to a hearing.
Answer:
Agents should not fill in both blanks, the first with the county and the second with the property’s address. The form was designed to have the agent
and buyer fill in one OR the other, not both.
If you want to include all properties in an entire county, then fill out the
first blank with the county name and leave the second blank (property address) empty. If you want the agreement to be specific and only cover one
property, then fill in the second blank with the address and leave the first
blank (county) empty.
This should help you avoid any confusion with your clients in the future.
Grievance Committee’s Role
Once someone submits a complaint to the UAR, I place it on the docket for
the next Grievance Committee meeting. Prior to each meeting, every Grievance
Committee member individually reads each complaint and prepares to discuss its
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Issue #3 – Not defining
which items are
included/excluded
from the sale
wasn’t a part of a cabinet nor was it fastened directly to the wall (it hung on a nail
like a framed picture), it shouldn’t be considered an “included item” anyway. He offers $30 for a cheap mirror he saw at the home improvement store. Betty demands
$600 or his family heirloom mirror, his choice.
As Sam’s agent, what could you have done to avoid this conflict?
The simplest answer is that you could have put the mirror as an excluded item
in Section 1.3 of the REPC. However, more often than not, the listing agent isn’t
aware that the seller is planning on keeping an item; otherwise, the agent would
have excluded it.
A best practice would be to go through Section 1.1 with your seller and point out
all of the automatically included items and walk through the home and see if the
seller is planning on keeping any of those items.
There are some items that don’t neatly fit into the descriptions and may require a
discussion. For example, sheds, bookshelves and basketball standards are all questionable items. If your seller wants to keep an item and it isn’t clear if it is included,
make sure to list it as an excluded item. This will help avoid confusion at closing.
If you are the buyer’s agent, make sure you are proactive as you write up the
REPC with your buyer. If you see an item that may or may not be classified as an
included item, consult with your buyer and include it in the REPC if the buyer
wants it to stay.
Although there are many unforeseen issues that can arise during a transaction,
take the time to consider these common problems in advance. This will go a long
way in preventing disputes and protecting your clients. Without this extra effort,
there’s a good chance you could run into these same problems sometime down
the road.
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lease (this allows the buyer to more
easily evict a seller who won’t leave at
the end of the lease term and recover
damages for the days the seller stayed
beyond the term of the lease), and
responsibility for damages that occur
during the lease period (who is responsible for what repairs).
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legal
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contents. The Grievance Committee
will only consider the actual contents
of your complaint.
At the meeting, the Grievance Committee looks at what Code of Ethics
articles are named and decides if the
allegations, “taken as true on their
face,” warrant a hearing. The Grievance Committee does not determine
guilt. The Grievance Committee
does not determine Code of Ethics
violations. The Grievance Committee’s function is simply to determine
whether the complaint, if taken as
true, could support a possible violation
of the Code of Ethics.
Lastly, and I can’t overstate this
remaining point, the Grievance Committee process is something only the
complainant (the person submitting
the complaint) must go through.
You may be wondering, “How is that
If you receive a packet from me that
names you as a respondent for possibly
violating the Code of Ethics, it can be a
bit unnerving. I understand your first reaction may be anger or animosity toward
the process. My advice: Take a deep
breath. You are not guilty of anything at
this moment. The Grievance Committee
did not find you in violation of the Code
of Ethics. The responsibility to prove
that there was a violation stills rests on
the complainant. This is your opportunity to tell your side of the story. So take
a couple of days and write a response
that supports your position.
You can call me if you’d like, but
know that I cannot “drop” or “dismiss” a
complaint. My role is to ensure that the
NAR/UAR policies are followed and that
everyone has adequate time to share his
or her side of the story. Once I receive
your written response, I send a copy to
the complainant. The complainant can
reply to your response, but it isn’t necessary. Finally, a hearing date is set and
both parties will have the opportunity
to tell his or her respective side to the
panel.
Hearing Panel’s Role
About a week prior to the hearing, the
panel members receive both parties’
written accounts and submitted evidence. This allows the hearing panel to
become familiar with the complaint and
come prepared with any questions they
may have for the parties.
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Listing agents must disclose
if the seller’s commission fee
changes based on whether or
not the listing brokerage is the
sole procuring cause.
Conclusion
Lastly, know that the entire process is confidential. Unlike the Division of Real
Estate, the UAR never publishes the names of REALTORS® found in violation of
the Code of Ethics. One of the primary goals of the ethics process is to educate and
correct behavior that violates the Code of Ethics. It is not to embarrass, make fun of
or shame REALTORS®.
If you are contemplating filing an ethics complaint or are named in a complaint,
feel free to contact the UAR at (801) 676-5200 with any questions or concerns.
Ethics case study
Presenting offers from
family members
Dual/variable rate
commissions
The following case study deals with Article 4 of the Code of Ethics, which
states, “REALTORS® shall not acquire an interest in or buy or present offers
from themselves, any member of their immediate families, their firms or any
member thereof, or any entities in which they have any ownership interest,
any real property without making their true position known to the owner or
the owner’s agent or broker. In selling property they own, or in which they
have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.”
What to disclose on the MLS
by Brad Baldwin, J.D. · UtahRealEstate.com legal counsel
O
n the listing input form
for virtually every multiple
listing service, there is a
required disclosure field for
a “dual” or “variable rate” commission.
This is often found as a simple “yes” or
“no” box on the MLS input form. Yet
despite the simplicity, there continues to
be confusion about this disclosure.
Exactly what does this disclosure
mean? Why is it important? And why
does it need to be disclosed on the
MLS? In summary, the MLS requires
this information to help REALTORS®
Ethics Case
Seller Steve asks REALTOR® Rick to sell his house. REALTOR® Rick accepts
and lists Seller Steve’s property. Almost immediately, Rick receives multiple
offers. REALTOR® Rick promptly and objectively presents all offers to Steve.
The highest and best offer comes from REALTOR® Rick’s brother, Buyer Bob.
Seller Steve accepts Bob’s offer. REALTOR® Rick never disclosed to Seller
Steve that Buyer Bob was his brother.
Ruling
Did REALTOR® Rick need to disclose that Buyer Bob was his brother? Yes.
Article 4 states that REALTORS® shall not present offers from immediate
family without making their true position known to the owner. Even if the offer truly is the highest and best, there is no caveat or exception.
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I received notice of a
complaint against me.
What do I do now?
REALTOR
®
At the hearing, all parties will have the opportunity to share their side, crossexamine the opposing side and question any witnesses (if present). Additionally, each
party may elect to be represented by legal counsel, at their own expense, but doing
so is not required. At the conclusion of the hearing, each party will have time to give
a closing statement.
Though the formal rules of evidence used in court do not apply, the hearing panel
does weigh all the evidence and testimony in order to determine whether or not
there have been any ethical violations. This includes determining the credibility of
the parties, witnesses and evidence presented.
During the hearing, panel members can directly ask questions of the parties and
their witnesses.
It is important to note that complainants have the ultimate burden of proof. This
standard is “clear, strong and convincing” proof of an ethics violation. NAR defines
this burden of proof “as that measure or degree of proof which will produce a
firm belief or conviction as to the allegations sought to be established” (emphasis
added).
So unless a complainant can meet this burden, the hearing panel will not find the
respondent in violation of the Code of Ethics. The panel’s decision is usually mailed
to the parties about a week or two after the hearing.
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fair to the other side?” Think of it this
way: the Grievance Committee is simply
sifting through the complaints to dismiss
the ones that are filed outside of 180
days, name a non-REALTOR®, allege
conduct that falls outside the named
Code of Ethics articles, etc. All other
complaints that could support a possible
violation of the Code of Ethics are typically forwarded to a hearing.
If the complaint fails to make it out of
the Grievance Committee meeting, then
the opposing party never even knows a
complaint was filed against them. The
opposing party is only notified once the
complaint moves to a hearing.
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REALTOR
ethics
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comply with their duties under the REALTOR® Code of Ethics. This obligation is
found in your MLS policies or terms of use and is a standard MLS disclosure required
by the National Association of REALTORS®.
What a dual or variable rate commission is not
A dual or variable rate commission does not mean a lender might reduce the buyer
agent’s commission in a short sale transaction. A short sale and potential reduction in
commission by a lender is disclosed elsewhere on the MLS.
It does not mean the listing broker will receive more than half of the gross commission
offered by the seller. The MLS does not determine, or even suggest, commission splits.
Nor does the MLS require disclosure of gross commissions — so long as the listing
broker offers some buyer agent commission (BAC) in the MLS listing.
It does not mean the listing broker may include various conditions on the payment
of the BAC. For example, paying the BAC for a full-price offer only, or not paying the
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REALTOR
BAC if the buyer agent didn’t meet
some precondition. If the buyer agent is
the procuring cause, conditions to payment of the BAC are not allowed.
A dual or variable rate commission
does not mean the listing broker has reserved the right to renegotiate the gross
commission with the seller once an offer
is received. The listing broker always has
this right — so long as it doesn’t affect
the listing broker’s existing offer to pay
an agreed BAC to the buyer agent in
accordance with MLS commission policies. The BAC on the MLS cannot be
changed once an offer is received.
How can the recorded property line
not be the legal boundary?
What REALTORS® need to know about “boundary by acquiescence”
R
EALTOR® Bob was showing a new
home to a potential buyer. As they
walked the property, the buyer spotted a wooden fence along the rear of the
property and asked Bob if the fence was
the legal boundary of the property. Bob
indicated it must be since the lot number
and lot size were included in the MLS and
the agent remarks didn’t say anything else
about it. Also, Section 16 of the standard
UAR Seller’s Property Condition Disclosure
did not disclose any boundary discrepancies
or disputes.
Bob stated that a survey would mark the
true property line and advised that the fence
would surely have to be moved if it was
located incorrectly. The buyer later closed
on the property, intending to do some new
landscaping and add some improvements.
After his purchase, the buyer ordered a
survey, which plainly showed the fence was
15 feet onto his property. The buyer wanted
all the property he purchased, so he met
with the neighbor and asked him to relocate
the fence back 15 feet to the legal boundary as shown in the deed and survey.
The neighbor refused. He said that
although there was no written agreement,
he had been landscaping and growing fruit
and vegetables right up to the old fence for
more than 20 years, and the prior owner
never objected or mentioned anything about
it. The neighbor even called his lawyer and
said he believes he now owns the property
up to the fence and plans to take the buyer
to court to establish the fence as the actual
legal boundary.
The buyer is very upset and calls REALTOR® Bob and wants to know if Bob or his
brokerage, or their seller client, is responsible since he was assured there would
not be a problem and now he has possibly
No. Only the fact that there is a dual or variable rate commission and what the differential is, if asked, must be disclosed. The total commission amount and other terms in
the listing need not be disclosed under this rule. The MLS does not require disclosure
of the gross commission.
Why is this information important to disclose?
purchased less land than represented during
marketing.
REALTOR® Bob should have been more
careful about assuring the client about the
legal boundary. Even though a survey could
have shown the true boundary, and there
was no written agreement for a different
boundary, the neighbor may have a good
case in Utah to have the fence line declared the new boundary. Bob should have
advised that a survey be obtained during
due diligence and that any discrepancies be
fully addressed with the seller. (How long has
that fence been there? Have you discussed
it with your neighbor and does he have your
permission?). The buyer could even ask the
neighbor about the fence prior to closing.
In Utah, lot line and boundary disputes
can easily arise and usually involve walls,
fences, driveways, landscaping and trees, or
other physical barriers that may over time
become the actual boundary. In addition to
hard feelings with neighbors, these cases
often wind up in court and can be upsetting and costly. Almost every year, appellate
courts in Utah issue case decisions involving
boundary line disputes.
In the absence of an actual written or
verbal agreement between the parties, the
courts often rely on the doctrine of “boundary by acquiescence” to settle these cases.
This doctrine, which the Utah Supreme
Court has clarified, is rooted in the legal
concept that “peace and good order of
society are best served by leaving at rest
possible disputes over long-established
boundaries” and to “promote peace and
stability in land ownership.”
The Utah Supreme Court has put forth four
elements that must be met to establish that
a boundary by acquiescence will take precedence over the actual legal description:
1. Occupation of the property up to some
visible line marked by monuments, fences
or buildings such that a reasonable person
would be placed on notice that the visible
line was being treated by the neighbors as
the boundary line. The court has stated that
a row of trees, walls, creeks, ditches, irrigation or farming, or other improvements may
be enough to establish the physical line.
2. Mutual acquiescence in the line as a
boundary. This doesn’t mean some actual
agreement or acknowledgement. Merely
failing to object or do anything inconsistent
with the visible line may be enough.
3. The line has been in place for a long
period of time. The Utah Supreme Court
has determined that this means for 20 years
or more. It can sometimes be a factual issue
as to when the acquiescence began, but the
20 years seems to be a firm requirement.
4. The line involves adjoining landowners.
It is important to note that the location
of the true boundary does not need to be
in doubt. What is necessary is to prove the
elements of the claim by clear and convincing evidence.
So, what should a REALTOR® advise?
Buyers should find the actual boundary
by survey, stakes and measurements during
the due diligence period. Then they should
discuss and resolve any issues about boundaries and visible monuments that create a
possible legal boundary with the seller and
neighbors.
Many disputes can be avoided by having
an owner contact legal counsel to prepare
a simple boundary line agreement that
acknowledges the true legal boundary,
mentions any physical improvements and
includes provisions that the parties do not
intend for the actual legal description to
change over time.
Besides being in the REALTOR® Code of Ethics and MLS policies, it has long been
felt that knowing and understanding this information is material to the offer of compensation (the BAC) and to a buyer agent’s ability to adequately represent a buyer.
Disclosure of a dual or variable rate commission may affect which property the buyer
and his agent pursue, and it may change the terms of the offer once the buyer and his
agent know about it. For example, the buyer may want to structure a different offer
knowing the seller might pay less commission if a competing offer is submitted by a client represented by the listing brokerage.
In summary, it is deemed an important fact about the transaction that the buyer and
his or her REALTOR® should know; therefore, the listing broker needs to disclose it.
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Must all the terms of the listing contract be
disclosed?
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Property line due diligence
What a dual or variable
rate commission is
A dual or variable rate commission is
described in the REALTOR® Code of
Ethics (Standard 3-4). It exists when the
seller, in the listing agreement, agrees
to pay one amount of commission if the
listing broker’s office is the sole procuring cause of the sale (i.e., without any
assistance from a buyer agent). The
seller pays different amounts if the sale
results through the work of a cooperating broker or when the sale results from
the efforts of the seller.
Under the REALTOR® Code of
Ethics, the listing broker must disclose
the existence of such arrangements to
potential cooperating (buyer) brokers
and shall, in response to inquiries from
cooperating brokers, disclose the differential that would result from a cooperative transaction. Also, the buyer broker
must disclose such information to the
client before the client makes an offer to
purchase the property.
For example, if the listing agreement
specifies a gross listing commission of X
percent in the event the listing brokerage sells the property in cooperation
with a buyer broker and X less 2 percent
if there is no buyer broker involved
(meaning the listing broker directly
procures the buyer), then the existence
of this dual or variable rate commission
must be disclosed on the MLS. The 2
percent differential must be disclosed
to the buyer broker upon request. The
buyer broker must then communicate
this information to the client before an
offer is submitted.
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The UAR’s legislative team will be
working to protect REALTORS®’
interests during the upcoming
session.
REALTOR
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REALTOR
feature
T
he Utah Legislature will begin its annual general session at the end of
January. As is the case every year, real estate-related bills are already
emerging. Below is a preview of what the legislative team of the Utah Association of REALTORS® is expecting for 2013.
Radon
KSL recently aired a story about a subdivision that had high levels of radon gas
in the homes. Because radon is suspected to be the second-leading cause of lung
cancer in the U.S., there have been calls to mandate the disclosure of radon in all
real estate transactions. As a result, Sen. John Valentine has requested a “Radon Gas
Provisions” bill to be brought up during the general session.
State law already requires home sellers to disclose material defects of which they
have knowledge. In fact, Section 20 of the Seller’s Property Condition Disclosure
form asks sellers if they are aware of any past or present hazardous conditions such
as radon gas. If they are, homeowners are required to disclose those conditions to
the buyer.
The proposed bill will likely attempt to take this requirement even further, mandating each property be tested for radon before it can be sold. Because of the implications this has on the real estate transaction, the UAR will be closely monitoring
the situation to assure that any final legislation will not slow the buying and selling
process nor will it increase REALTOR® liability.
Tax on Databases
The state Tax Commission recently said it has the authority to tax someone for accessing a database. In addition to the effect on lawyers and other professionals who
use databases, this means REALTORS® would be taxed for using a multiple listing
service. Not only that but costs for title services would go up as well since providers
regularly access databases.
To address this issue, the UAR will be supporting legislation that clarifies that
database access is not a taxable item.
Fighting for
®
REALTORS
Threats to BPOs
Another proposal would harm REALTORS® by making broker price opinions
illegal and only allowing full property appraisals for homeowners appealing their
property taxes.
To prevent this, Rep. Gage Froerer is proposing a bill that would clarify that anyone can represent a homeowner in a property tax appeal, and the owner can bring
any and all relevant information, including current listings and current sales. While
only a licensed appraiser can provide an official “opinion of value,” REALTORS®
can use data for a “price opinion,” according to the proposed clarification.
The bill would also raise the standard for hearing officers to make sure those
conducting property tax appeals are knowledgeable about the property type they’re
reviewing.
2013 Utah legislative session preview
Proposed Fee Increase
The next proposal comes on a regulatory rather than a legislative level. To make
up for budget shortfalls and to receive higher fees from agents, the Division of Real
Estate suggested that real estate agents be required to have two licenses: one for the
During this time, the UAR will continually work
to support bills that promote homeownership
and defeat those that adversely affect the ability
to transfer real estate.
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feature
individual and one for the agent’s business. The UAR was concerned about
this extra burden on REALTORS® and
asked the Division to reconsider the
idea. The Division was very cooperative
and is now looking for other ways to
make up for weak revenues.
Home Scoring
The U.S. Department of Energy’s
Home Energy Score launched this
year as a way to help homeowners
save on their energy costs. Under the
program, an energy score assessor will
inspect a participating home to determine how energy efficient it is, and
then give it a rating and suggestions for
saving energy.
While this voluntary program can
help homeowners reduce their energy
costs, there has also been talk about
making this type of energy-efficiency
testing mandatory for homes that are
sold. Mandatory testing is problematic
because it adds costs to the real estate
transaction, increases the likelihood of
closing delays and stigmatizes homes
with low energy scores, especially
existing homes.
As legislators discuss various energyefficiency standards, the UAR will be
monitoring each proposal to make sure
homes are not required to undergo
mandatory energy testing before they
can be sold.
Liens
County officials are considering a
bill that would allow them to place a
nuisance abatement lien on someone’s
home. Because this would be similar
to a tax lien and would possibly hinder
the completion of real estate transactions, the UAR will be closely involved
in the debate on this bill.
These are just a few of the many
issues that will come up during the
January-to-March session. During this
time, the UAR will continually work to
support bills that promote homeownership and defeat those that adversely
affect the ability to transfer real estate.
Keep up with the latest legislative
news by attending REALTOR® Day
at the Legislature on Feb. 22 and by
reading your UAR communications.
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steven randall
Dan c. simons sr.
charlotte
thomas
2012 PRESIDENT’S CIRCLE
$25,000 in lifetime contributions
lori chapman
equity real estate
shawn janke
2012, Sterling R 2007-11
2012
dave robison
dina scheifl
thomas wright
2012, Crystal R 2010-11,
Sterling R 2006, 2009
2010-12, Crystal R 2009,
Sterling R 2006-07
kim farber-lynch
john gonzales
2012, Sterling R 2011
doug russell
2012
j. tim
alexander
2011-12
20
CRAIG HAWKER
mark shepherd
2012, Sterling R 2009-11
judy allen
2003-12
chris kyler
2007-12, Sterling R
2002-06
max thompson
Stefanie
Tugaw-madsen
h. blaine walker
Tuiono malakai
2010-12, Sterling R
2006-09
justin allen
2009-12
2012, Sterling R 2008-11
2011-12
Christy vail
2009, 2011-12
2009-12
2012, Sterling R 2008,
2011
john ames
Rebecca jensen
brock
andersen
2006-12
stephanie
vincent
rhonda
anderson
2012
2011-12
william bustos
steve cuillard
sue wilkerson
O. randall
woodbury
2011-12, Sterling R 2006,
2009
paris
anderton
2012
2010-12
2012
2012
sandy day
jake breen
troy peterson
2012
dean
crandall
2010-12
2012
gregory
fabiano
vern fielding
2010, 2012
robert hill
donna pozzuoli
sandy hoover
2005-09, 2011-12
2003-12
steven
johnson
2007-08, 2010-12
2011-12
2012
sue benson
boyd brown
john brown
2009-12
2011-12
vardell curtis
2004, 2006, 2009,
2011-12
mindie dalley
2012
terry
bickmore
2008, 2010-12
2005-08, 2010-12
2012
lenÉ balster
2004-07, 2009-12
craig lelis
luke balster
2007, 2009-12
2006-07, 2009,
2011-12
curtis bullock lori calabrese
2012
brian davis
sharee bigler
2011-12
r. brian de haan deanna dipo
1982, 2003-12
2010, 2012
2007-12
lori fleming
2007-12
bryan hurd
2010-12
sue lipsman
2006-08, 2012
2007, 2009-12
REALTOR
jared booth
2010, 2012
1996-98, 2000-03,
2007-12
gregory call
christine
carver
scott chapman
2012
2002-03, 2006,
2008-10, 2012
kent dunkley
joni endicott
2007, 2009-12
2006-12
Angie Domichel Nelden
2012
russ booth
2012
2011-12
patti florence
2005-07, 2010-12,
Crystal R 2004
jerold ivie
2010-12
Dave
Frederickson
2012
ryan ivie
2010-12
casey
froerer
2011-12
kevin ivins
2007-10, 2012
gage froerer
2002-03, 2005, 201012, Crystal R 2004, 2007
shirley
jacobson
2012
lisa
jungemann
jeff justice
2011-12
2005, 2007, 2012,
Crystal R 2006
brady long
Jim lyman
2010, 2012
2012
adam kirkham
2011-12
carolyn
kirkham
gary hancock annie hedberg
2002-12
spencer janke
2011-12
ron jeffs
bill heiner
2006-12
joe jensen
2012
2002-07, 2010-12
ryan kirkham
2004, 2006, 2008-12
grady kohler
scott lalli
2006-12
2004, 2006-08, 2012,
Crystal R 2009-10
chris
mccandless
gordon milar
craig morley
REALTOR
®
2012
2012
cheryl lyon
2012
gary madsen
2008, 2010-12
Susie
Martindale
2004-09, 2011-12
®
robert bolar
2010, 2012
2011-12
scott jessop
kyle
ashworth
spring
bengtzen
2012, Sterling R 2006-08,
2010-11
claire arslanian larson
ben brown
2012
2011-12
2012, Sterling R 2010-11
ken bell
2004-10, 2012
2010-12
b. thomas
colemere
jiMMY rex
2008, 2011-12, Sterling R
2004, 2006
Mike ostermiller
sally beagle
2012
2011-12, Sterling R
2009-10
rpac
2012
debbie bowden
chris nichols
aaron marshall
2009-12, Sterling R
2004-08
scott larsen
kent
bankhead
David Mansell
Al Mansell
danny gutierrez
Jeff Jonas
2012, Sterling R 2006-08,
2010-11
John Harr Jr.
®
2012 RPAC Major investors as of November 15, 2012
UTAH
Butch Dailey
UTAH
Gary Cannon
CRYSTAL R
HALL OF FAME
jim bringhurst
kenny parcell
GOLDEN R
REALTOR
STERLING R
®
UTAH
REALTOR
rpac
2012, Crystal R 2007
2003-07, 2009-10,
2012
fred law
2011-12
UTAH
®
george morris
scott murray
sonja norton
taylor
oldroyd
2011-12
2011-12
2006-09, 2011-12,
Crystal R 2010
cal musselman kathy nielsen
2002, 2006, 2008,
2010-12
2009-12
bonnie peretti
kye pope
2002, 2004-12,
Crystal R 2003
2011-12
jed nilson
dan nix
jack nixon
jorge prado
kim prado
george
richards
2012
2011-12
2012
2011-12
2011-12
heather
roxburgh
2010-12
sam sampson
2001-04, 2006-07,
2009-12
2012
laney riegel
2008, 2012
jack scott
2012
jechelle
secretan
2010-12
linda secrist
2004, 2006-08,
2010-12
carrie shoaf
2012
bart norris
caro norton
scott robbins
matthew
robison
2012
2012
2012
jeff sidwell
2. False. Fannie Mae and Freddie Mac
require a minimum wait of four years for a
foreclosure, possibly seven, said Redfin. To
qualify for the lower four-year wait, the borrower must prove that the foreclosure was
a result of a hardship rather than financial
mismanagement.
These wait times are the same for a short
sale; however, if the buyer puts 20 percent
down, then it can be a minimum two-year
wait period from the short sale date, Redfin
said.
debra sjoblom
2004-12
2004-12
2012
3. True, according to Vicki Elmer’s article
for The New York Times.
elizabeth
slager
berna sloan
2012
2004-06, 2010-12
mary tam
2012
chris tolman
2011-12
chris sloan
2002-04, 2007-08,
2010, 2012
marino
toulatos
2000, 2002-09, 2012
larry welsh
2004, 2006-12
roger welsh
2010-12
bob west
2004-07, 2009,
2011-12
sonya
smithing
ron snow
2012, Crystal R 2011
2010-12
ed tugaw
1999-03, 2005-07,
2010-12
paul willden
2006-12
mark ulrich
2003-07, 2009-12
rick
southwick
sharon
spratley
penny stark
joshua stern
2005-06, 2009-12
2001-02, 2005-08, 201012, Crystal R 2003-04
2008, 2011-12
2004-12
jon vance
steve vincent
mike visser
melodie
waldron
2012
2012
2012
4. False. A VA loan only requires a twoyear wait period after a short sale or a
foreclosure, Redfin said.
lee stern
1996, 1999, 2002-07,
2009-12
5. True. The Federal Reserve Board of San
Francisco recently studied how a mortgage
default affects a borrower’s access to credit
and concluded that the best indicator for
predicting return to the market was the
change in the person’s credit score. After
five years, borrowers who reenter the mortgage market have a more than 100-point
increase in their score.
Overall, the paper said, about 10 percent
of borrowers return to the mortgage market
within 10 years of their default. Those who
had a foreclosure or short sale are less likely
to come back as quickly as those who paid
off their mortgages for reasons other than
default, wrote researchers William Hedberg
and John Krainer.
“Evidence suggests that the process of
regaining creditworthiness is lengthy,” the
research letter said. “Borrowers who terminated their mortgages for reasons other
than default returned to the market about
two-and-a-half times faster than those who
defaulted.”
lisa wanlass
2012
2012
doug winder
2007, 2011-12
koni wray
2010, 2012
Borrowers who defaulted on their
loans in the early part of the
housing downturn may be able to
qualify for a mortgage again.
1. True. The Federal Housing Administration requires borrowers who have been
through a foreclosure to wait at least three
years before they are eligible for an FHAbacked mortgage, said a blog from real
estate brokerage Redfin.
For a bankruptcy, the timeframes are
different. After a Chapter 13 bankruptcy,
someone can get an FHA-insured mortgage
in as little as a year, wrote Vickie Elmer in an
article for The New York Times. A Chapter
7 bankruptcy requires a two-year wait from
the date of discharge.
2012
kelly
shuldberg
quiz
Answers
1996, 2002-04, 2006-09,
2012, Crystal R 2010-11
2008-12
michael rowe
travis nokes
2007-10, 2012
REALTOR
®
UTAH
REALTOR
rpac
jennifer yeo
2012
boomerang
buyers
How long does it take to come back
to the market after a foreclosure or
short sale?
T
he Wall Street Journal recently reported on the phenomenon of “boomerang buyers,” those who lost their homes to foreclosure during the
early days of the housing downturn but are house hunting once again.
The article, “Buyers are Back after Foreclosure,” cited several homebuilders who said they have seen an increase in the number of buyers who have
been through a foreclosure or a short sale. In fact, San Diego builder Cornerstone
Communities had about 18 percent of its closings from buyers in this situation,
according to the Journal.
So how long does it take before a borrower can buy a home again after a foreclosure or other credit-impairing event? Test your knowledge in our quiz below.
1. True or False? Borrowers who have
been through a foreclosure can get an
FHA mortgage again in as little as three
years.
2. True or False? Fannie Mae and Freddie Mac require a minimum wait of three
years before someone can get a conventional loan.
two to four years to qualify for a conventional loan after a bankruptcy.
4. True or False? A VA loan requires a
three-year wait after a foreclosure or short
sale.
5. True or False? The best indicator
for predicting a return to the mortgage
market is a person’s credit score.
3. True or False? Borrowers must wait
REALTOR
®
REALTOR
UTAH
UTAH
22
®
Tr u s t A x i o m t o G e t Yo u r C l i e n t s H o m e
T h e r e i s n o s u b s t i t u t e for experience combined with personalized care.
Axiom Financial is a full-service mortgage lender with experienced professionals who
have the training and expertise to meet your clients’ needs. Because our consultants
personally manage your clients’ loans, you can be confident that your transactions
can be closed on time without any surprises. 888.656.LEND | www.axiomfinancial.com
©A xiom Financial, LLC. All services rendered by A xiom Financial are to assist in providing mortgage loans. A xiom is an Equal Housing Lender.

FIgHTINg FOR REALTORS®

Transcription

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