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| In This Issue · ARMLS Rules Change · Noise Map Requirement in Surprise · Updated Tax Credit Info · SureClose Reminder · Legal Q & A · Broker Blog Information on the in’s and out’s of the tax credit for first-time homebuyers. A list of HUD homes available for purchase by city. Updated ARMLS Rules A table of Old vs. New ARMLS Rules Read Our Online Broker Blog Surprise Noise Map You must present this to buyers in Surprise 480.722.9800 Office 480.802.1599 Broker Hotline brokerreview@westusa.com | New ARMLS Rules
Listings: We previously had 72 hours excluding weekends and holidays from the date of a seller’s signature before the listing needed to be in MLS; however, the new rule required the listing to be entered within two calendar days. If this will not happen, disclose otherwise to your seller on page three of the listing contract at the time the listing is taken. Photos: 1) At least one: A new rule requires at least one photo for residential sale listings regardless of the status. The photo must be uploaded and attached to the listing within four days. At least one photo must be of the main exterior of the home. Violation of this rule is an automatic violation, and you will not be given notice to correct before the violation is issued. 2) Promotion: No photos or virtual tours can promote the agent or broker which means that the name, logo, and contact information cannot be visible including the for sale sign. Watermarks, date and time stamps are now permitted. Violations: 1) Process: We previously had five days to correct a violation prior to a file being issued; however, the processed has changed so that now the first two violations are not fined, but subsequent violations incur immediate fines. Notification will be primarily done by email for minor violations, and ARMLS requires that they have a valid email address. Minor violations will be waived if corrected within the allocated time. Lockbox penalties are automatic violations such as removing the keys from a lockbox with out the owner’s permission, lending anyone your lockbox key, placing a lockbox on a property without permission, etc. Other violations which carry immediate fines include the manipulation of days on market, incorrect sales price data, allowing unauthorized users to access MLS. Fines normally range from $50 to $400 but can be as high as $15,000 with a suspension for a severe violation. 2) Appeals: Previously there was no fee to appeal; however, the appeal will now cost you $50 or 10 percent of the fine as an administrative fee which will only be refunded to you in the event of a successful appeal. Dual Listings: It is currently acceptable to use variable bedrooms to input a listing twice with each listing showing a different number of bedrooms; however, this will no longer be permitted after May 1. The number of reasons to have one property listed more than once in the MLS has been reduced to only four acceptable reasons: it is both for sale and for lease, it can be purchased at one price and with extra land for a second price, it can be purchased/rented furnished or unfurnished, or it is zoned for multiple uses. Short Sales: 1) Status: Currently, once a contract has been accepted by the buyer and seller, although it is contingent upon bank approval, it must be put into AWC-I status. ARMLS will allow listings to stay active if the parties use the AAR Multiple Counter Offer with the Short Sale Addendum signed by both the buyer and the seller and forwarded to the lender for approval. The buyer and seller sign the top two sections of the AAR Multiple Counter Offer, and the seller does not sign off on the Final Acceptance line until obtaining lender approval of the short sale. 2) Disclosure of potential Short Sale: Listings which will or may require lender approval and agreement must be disclosed as potential short sales when reasonably known to the agent. 3) Commission Apportionment: The listing agent may enter into the Realtor Remarks section how any reduction in the commission entered into the compensation fields of the listing will be divided between the listing and cooperating brokers. If the listing agent discloses the details of the reduction of commission, should the lender reduce the commission, the brokers are bound to those written terms at the time of approval by the lender. If the listing agent does not enter into the Realtor Remarks any apportionment of commission reduction required by the lender, the listing broker is bound by the amount of commission entered in the compensation field of the listing. Surprise! Ordinance says Noise Map is a must. All real estate licenses selling or leasing homes in the City of Surprise must carry a Noise Contour Map and show it to all potential buyers and tenants prior to showing any homes. The Surprise Ordinance Section 26-67 was established in 2003 to make potential buyers aware of the noise from Luke Air Force Base and the potential for military overflights. The code actually states that the map must be at least 81/2 X 11 inches, and you must show the buyer/tenant the location of each property on the map. The penalties, if caught in violation, are civil in nature and can include a fine. Repeat offenses can be charged as a misdemeanor with additional fines. Please use the link in the left margin to access and print the map or use the attached document. Update on Tax Credit Since the February Newsletter in which the tax credit for first time buyers was described in great detail, there have been significant changes. Most importantly, the tax credit has increased from $7500 to $8000 and it no longer requires repayment. Even though we have just passed the filing deadline for 2008 taxes, your buyers who close on homes before the end of 2009 can claim the deduction, if the meet the income and other requirements, on their 2009 tax filing. Again, the tax credit is a great reason to talk to your entire database. Send everyone some information regarding the changes to motivate those potential buyers while they are still feeling the sting of filing their 2008 taxes. SureClose Reminder
Remember to submit your paperwork one of the following ways: 1) For a new file, email to azjacquet@mysureclose.com or scan into the black and white copier/scanner in the office. Those are the only two ways to start a new file. We cannot accept new files by fax or as email to a specific staff member because we cannot ensure that we can review your paperwork within the required five days. 2) For additions to an existing file, you must include the “Add to File” cover sheet if you email to azjacquet@mysureclose.com or scan into the copier/scanner. You also have the option of uploading your add to file paperwork directly into your electronic files if you have ProView and even in some instances with the basic view. The first page of the file you send or scan is an indicator to us of what to do with the forthcoming paperwork. An A100 or a Listing Checklist indicates to us that we are opening a new file. If you are adding something to a file you have already submitted, please use the “Add to File” coversheet. By logging into SureClose, you can easily access all of your transaction files and quickly see any remaining file requirements. If you are expecting to be paid for a closing transaction, please proactively take a look and ensure that all file requirements have been met so that we can release your check to you in a timely manner. Legal Q & A Pool Barrier Disclosure Q: Is the pool barrier notification in the purchase contract and lease sufficient disclosure? A: No. It is a state requirement per ARS 36-1681 that anyone entering into a contract to sell or rent their home with a swimming pool or contained body of water must disclose to the buyer or tenant notice explaining safety education and responsibilities of pool ownership. Lead Based Paint Disclosure for Rentals Q: Of course a lead based paint disclosure form is required for transactions of property built prior to 1978, but is that form also required for lease transactions? A: Not exactly. There is a separate form, Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards (Rental), required for rental transactions. The LBP disclosure is required by federal law which states that the seller must provide the required disclosure form, the EPA pamphlet, any known information on lead based paint, and permit an inspection period. This is actually one of the few documents intended to be initiated by the seller. Domestic Water Wells Q: If I am selling a piece of property with a well, is there additional paperwork required? A: Yes. There is an addendum to the contract called the Domestic Water Well Addendum which discloses the presence of a well to the buyer and defines issues regarding well records, inspections, and transfer of ownership. There is another form, Domestic Water Well/Water Use Addendum which is actually an addendum to the Seller Property Disclosure Statement in which the seller discloses specific known information about the well. Delivery and Receipt Q: When is a contract, counter, cure notice, or any other part of a contract considered received by the other party? A: Receipt is considered to be at the exact same time as delivery. This means that if you are sending an offer from your buyer to a listing agent by email or fax, it is considered to be received by the seller at the time that you actually press the send button to the listing agent. If you have an email in your sent folder with a specific time stamp of when you sent it to the other agent, it is considered delivered to the seller at that time. The same is true with the information on a fax confirmation sheet. For this reason, you need to make sure that the email address you use in MLS is valid and checked regularly. Additionally, if you are submitting an offer, and you do not check your email regularly, than do not include your email address on line 370, page 9 of the contract. Visit Our Broker Blog for Answers Don’t forget our online Broker Bulletin for West USA Revelation agents. We will post information on specific real estate and contract topics to assist you with your transactions. Coming soon will be a list of helpful contract clauses for various situations. If you look today, you will find information on topics ranging from Using Lease Option Contracts to Mortgage Fraud as well as Short Sales. Additionally, I post the monthly Broker Newsletters there for you to refer back to. | ||||
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Wednesday, October 28, 2009
April Newsletter
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