West USA Revelation Broker Bulletin

Current RE Issues

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

Contact Us

480.722.9800 Office

480.802.1599 Broker Hotline

http://pinalcountyaz.gov/Residents/Documents/SanTanValley.pdf

brokerreview@westusa.com

Protect Yourself: Short Sale Listing Risks

With Short Sale transactions representing a large portion of our market, be aware of the following potential risks to you as the agent. Remember that the short sale transaction is a regular real estate transaction with a buyer and a seller. It just has a specific contingency that is the short sale negotiation between the seller and the seller's lender. Do not represent yourself as an “expert” on short sales, and whenever your client asks “should I?” followed by anything to do with short sale, loan payments, or foreclosures, refer them to their attorney!

1. Misrepresenting Tax Consequences -- Although a law was passed in 2007 directing the IRS not to count forgiven mortgage debt as income, the provision in limited. It applies only to purchase money; it does not apply to second homes or investments; and it doesn't apply to a cash-out refinance. There is also a dollar limitation. Do not say that there is no tax consequence. Advise clients to speak with their accountants about whether or not they may experience a tax consequence.

2. Acting on Inappropriate Lender Requests for Seller Contributions --Lenders may go after money that sellers have in the bank or retirement accounts as a settlement to approve the short sale. The lender may communicate the demand to the realtor to get the seller to sign a note as a condition of the sale. If the loan qualifies under the state anti-deficiency statutes, the lender has no claim to this money, and agents that suggest otherwise may be at risk for negligence claims. If a lender demands money or a note, allow them to communicate it to the client directly.

3. Providing Poor Oversight of a Short Sale Negotiator -- If you take a hands off approach to your short sale negotiators business, you could be charged with negligence if a deal falls apart. Make sure that you and your negotiator have a process for communication. Keep a communication log to ensure that your seller's transaction is being worked on.

4. Facilitating Transactions not Listed on the HUD-1 -- An investor may try to sweeten the deal for a seller by offering an incentive for the seller to accept and present their contract to the bank for approval. The seller's lender will frown upon the seller walk away from the home with money when they are taking a loss on it. Inflated values for personal property could draw ties to loan fraud if they are considered deceptive. Do not broker deals for personal property.

** excerpt from Sevrar News Magazine article by Robert Freedman

Time Running Out for Tax Credit

There is a lot of focus in the media right now about the expiration of the current Tax Credit bill. Additionally, there is a lot of talk about whether or not it will be extended and potentially even increased.

Did you know…? The greatest motivator for all people is... the fear of loss. Make sure that your buyer contacts know that they must close escrow prior to December 1^st, 2009 to take advantage of the $8000 tax credit. That means that unless they are a cash buyer, they must have a home under contract by the end of October if they have a chance of getting it closed on time.

Earnest Money Receipts and ADRE Rules

Please remember that the Arizona Department of Real Estate requires that in accordance with our fiduciary duty of accounting, we must have escrow open within one business day of our contract date unless otherwise stated in the contract. In the event of an ADRE audit, we may be subject to a $1000 fine for each non-compliant file.

Since contracts are due to the office for review by day 4, you should be able to submit the earnest money receipt with your contract for review. Our office policy is that you must submit the earnest money receipt within 24 hours of submitting your contract.

If you represent the buyer, and you are aware of circumstances that will prevent your buyer from opening escrow within one business day, disclose that in the purchase contract. For example, if you have an out of state buyer that will be wiring funds, write in section 8a of the contract “Buyer will be wiring funds to open escrow within 3 days of contract acceptance.”

If you represent the seller, and the buyer fails to open escrow in a timely manner, you should cure the buyer or have the parties sign an addendum disclosing the agreed upon change regarding the deposit of earnest money.

Appraisal Issues

In today’s market, it is very common for appraisals to not meet agreed upon purchase values. It is important that you are aware of the timelines associated with the appraisal contingency as the buyer only has 5 days to evoke their rights to cancel and retain the earnest money.

When you receive notice that your buyer’s appraisal is less than the agreed upon purchase price, have the discussion with your buyer about their options:

1. The buyer can exercise the appraisal contingency in section 2c of the contract and elect to cancel the contract and receive their earnest money back.

2. They buyer can discuss with their lender the possibility of coming to the table with additional cash. For example, if the agreed upon purchase price is $110,000 and the buyer has an FHA loan with 3.5% down payment, but the home only appraises for $100,000, the buyer may be able to get the loan off the $100,000 price by bringing the $3500 down (3.5%) plus the difference to the contract price of $10,000 for a total of $13,500.

3. The buyer and the seller may be able to negotiate another price anywhere in between the appraised value and the original contract price.

“Buyer and Seller agree to reduce the purchase price to $XXX,XXX. Buyer received notification on October 1, 2009 that the subject property appraised at a value of $XXX,XXX. Seller must sign and deliver this addendum back to the buyer by 5pm on October 6^th, 2009 OR this contract will be deemed cancelled per the appraisal contingency in section 2C of the contract and all earnest money shall be refunded to the buyer.”

This finite verbiage ensures that action will be taken during the five day period that the buyer has to cancel. If the seller does not return by the deadline, send cancelation paperwork to title with the incomplete addendum.

If you represent the seller, I would certainly want to be able to show the seller a copy of the appraisal before I would suggest they agree to a price reduction. Additionally, it is important to read the appraisal. Many times there are errors in properties selected, values, etc. that may be contested with the intention of obtaining a revised appraised value.

Sureclose Reminder:

Per ADRE, all contracts and documents must be reviewed within 5 days of being signed by the buyer and seller. Please submit your paperwork to the office as follows:

New Contracts:

· Fax to 1.888.600.0161

· Email to revcontract@mysureclose.com

New Listings:

· Fax to 1.888.600.0162

· Email to revlisting@mysureclose.com

Add to Files:

· Fax to 1.888.600.0163

· Email to addtofiles@mysureclose.com

When a closing package has been received, and a check is processed, you will be sent an email notification that will either state that your check is ready or that you have remaining file requirements. Please check your Sureclose file if you have remaining requirements, and you will be able to see exactly what we are looking for.

ALL CAPS REQUIREMENT MESSAGES: We have recently changed our office accounting and record keeping software system. Our old accounting and file management system is no longer being used; however, it still has several current listings and transactions files. It is very possible that you will continue to receive some messages from the old system until all of the old files have been cleared. If you receive a “PAGE 01” email message with a message in all capital letters, please do not be alarmed. All file requirement or information about your checks will be sent through Sureclose.

Earnest Money Requirements

2009-10-28T16:16:00.000-07:00

The Arizona Department of Real Estate requirement is that escrow be opened within 1 business day of the contract date. If we are audited and found to be noncompliant, we will be fined $1000 per occurrance. This is a very important issue as ADRE sees it as evidence of our fiduciary duty of accounting.

Traditional Transactions:

Your earnest money receipt must be dated and submitted within 24 hours of the contract date.

Short Sale Transactions:

You must submit your "Agreement Notifications" to Sureclose for review. Your EM receipts must be dated and submitted within 24 hours of the Agreement Notification date.

Fraudulent Property Tax Letter

2009-10-28T16:14:00.002-07:00

Agents: You and your clients may have received a letter offering to reduce property taxes. Please see the article from the Arizona Republic below regarding action by the Arizona Attorney General against one company sending that letter. You may want to be proactive and communicate this with your clients. Attached is a copy of one such letter.

Goddard sues company over property-tax letters

33 comments by Angelique Soenarie - Aug. 15, 2009 12:00 AM
The Arizona Republic

State Attorney General Terry Goddard filed a lawsuit and received a temporary restraining order against a California firm that has mailed thousands of official-looking letters soliciting money in exchange for a property-tax-assessment analysis.

The letters carry the name Property Tax Review Board Inc. and imply that the company can reduce property-tax bills if residents pay $189.

Goddard said the advertisement violates Arizona's Consumer Fraud Act because of its official appearance and because the deadline for property-tax appeals was in April.

Goddard himself received a letter at his home Thursday and said the personalized advertisement "is close enough that it would really grab my attention."

The letter does state that it is from a non-government agency but only in fine print.

"We are hoping we are going to be able to protect anybody else from this," Goddard said, adding that his office received hundreds of calls, including complaints from the state's 15 county assessors.

Mesa resident William Rogers Jr., 81, said he received a letter Thursday and was suspicious. He said he was concerned that newcomers to the area might be taken in.

"Heck, they might see this and write a check to reduce taxes," he said.

He said he called the Better Business Bureau and learned there were other complaints.

The lawsuit names Property Tax Review Board Inc., a Granada Hills, Calif., company; Property Tax Review Board President and CEO Michael McConville of Simi Valley, Calif.; and Carmen Mercer of Tombstone, the owner of the post-office box included in the solicitation.

Attempts to reach McConville and Mercer for comment Friday were unsuccessful.

The restraining order requires the defendants to stop mailing the advertisements and allows postal authorities to intercept any responses.

"Given the sophistication of the solicitation, I'm afraid many people have written $189 (checks) because it is such a compelling piece," he said.

According to Goddard's office, Mercer has turned over the post-office box to U.S. postal inspectors and has surrendered the more than 1,000 responses she received.

Goddard said Mercer, who has cooperated with investigators, claimed she was asked by a friend to open the post-office box and did not know what it was going to be used for.

Goddard added that postal inspectors will work to return the money to residents.

The lawsuit seeks to stop the defendants from soliciting property owners, as well as refund payments they've already received and pay $10,000 for each violation.

Homeowners can also file a complaint with the Attorney General's Consumer Information and Complaint section at 800-352-8431 or www.azag.gov.

Queen Creek - San Tan Valley Change

2009-10-28T16:14:00.001-07:00

The part of Queen Creek that was in Pinal County has changed their name. Here are some Q & A regarding the change. The information is an excerpt from the www.pinalcountyaz.gov website.

The link below shows a map of the areas impacted by the changed.

What are people referring to when they speak of San Tan Valley?

San Tan Valley is the name of Arizona’s newest community. It is also Pinal County’s largest community in terms of overall population. San Tan Valley comprises a large area south of the incorporated area (meaning inside the town limits) of Queen Creek, Arizona.

What zip codes are affected by the new name San Tan Valley?

Portions of the following zip codes: 85142, 85140, 85143 and 85132. When did the name change take place?

On July 1, 2009, residents of this area began using San Tan Valley, AZ (New Zip Code) on correspondence, mailing labels and stationery.

Why did we get this new name?

This area is not part of the Queen Creek town limits and there was often confusion about where people live. Depending on who you talk to, the area is known by different names: Bella Vista, Queen Creek, Johnson Ranch, “south of Queen Creek” or other variations like that.

The U.S. Postal Service announced a change in zip codes for a variety of areas throughout Pinal County. In his communication with local residents, District 2 Supervisor Bryan Martyn discussed giving the area a specific identity. By “branding” the area as different from – and larger than – Queen Creek, Supervisor Martyn believes the community will have a more marketable identity.

“When the economic recovery happens, and it WILL happen, companies will be looking to expand their businesses or regional offices in places like the San Tan Valley,” Martyn says. “We have a young, vibrant and diverse workforce that would love the chance to work closer to home. We need this marketable identity to attract the kind of economic development that pays higher wages.”

The change in zip codes offered perfect timing for changing letterhead, address labels and so forth. If you already have to make the change, it makes the most sense to do it all at once, Martyn said.

Does this mean we are now an incorporated town or city?

No, it does not. All this action does is to create a name for the geographical area. Incorporation is a much more involved process that is described in Arizona State Statutes Title 9-101. More about incorporation can be found on the web at: www.azleg.gov or at http://www.azleague.org/pdf/pub_municipal_incorp.pdf.

Pinal County does not take a position on incorporation. Deciding to incorporate or not is a matter that is decided by local residents. People may choose to incorporate for a variety of reasons but often it is because they would like their own police or fire protection, more control over local land use decisions or to solve specific infrastructure needs at the local level. There are many pros and cons related to incorporation and the Arizona League of Cities and Towns’ guide linked above can help you learn more about incorporation.

How was San Tan Valley chosen to be our new name?

A public vote was taken online and by paper ballot from Friday, June 19, 2009 until Monday, June 22, 2009. A committee of people gathered to count ballots and witness the ballots being counted and the name was announced on Tuesday, June 23, 2009.

The name “San Tan Valley” garnered 18 percent of the vote, beating 23 other names that had been recommended for the ballot. The Greater San Tan Area Coalition organized the voting and established the website. The Coalition also sponsored a public meeting on Monday, June 22 at the Circle Cross Ranch K-8 School to discuss the name and vote. You can learn more about the Greater San Tan Area Coalition at their website: www.ourgstac.com.

What is the population of the new San Tan Valley?

Population estimates indicate that the area population is slightly below 80,000, making the new San Tan Valley area Pinal County’s biggest population center.

List of communities affected by this change:

Arabian Trails
Bella Vista
Bella Vista Farms
Borgata
Caballero
Cambria
Canyon Rock
Castlegate
Circle Cross
Copper Basin
Dobson Farms
Equestrian Manor
Estates
Fairways I, II & III
Gallery I, II & III
Goldmine Equestrian
Greens I & II
Home Place
Horseshoe Canyon
Ironwood Crossing
Johnson Ranch Phase I
Johnson Ranch Phase II
Lakeview Gardens
Laredo Ranch

Lariat
Legends
Magic Ranch
Magma Ranch
Masters
Meadow Vista
Moonshadow
Morning Sun Farms
Mustang Ridge
Northern Johnson Ranch
Oasis Magic Ranch
Ocotillo Trails
Ocotillo Verde
Ocotillo/Kenworthy
Pecan Creek
Pecan Farms
Pecan South
Ponderosa
Quail Run
Rancho Bella Vista
Riding Stables
Rodeo Ridge
Rurals

RV Park
San Tan Heights
San Tan Shadow
Silverado Ranch
Skyline Estates
Skyline Ranch
Solera
Sonoran Villages
Southern Johnson Ranch
Stagecoach Pass
Sterling
Stonegate, Rosewalk
Superstition Views
Taylor Ranch
The Crossings
The Links
The Springs
Torrey Park
Trilogy
Vineyard Estates
Ware Farms
Wayne Ranch
Whitewing

July Newsletter

2009-10-28T16:12:00.000-07:00

Broker Newsletter

July 27, 2009

In This Issue

· Buyer Issues in Purchasing REO or Short Sale Properties

· Chinese/Defective Drywall

· ARMLS Rule Change for Short Sale Commissions

· SureClose Reminder

· Broker Blog

Revelation Links

Current RE Issues

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

Contact Us

480.722.9800 Office

480.802.1599 Broker Hotline

brokerreview@westusa.com

Buyer Beware!

When you are representing a buyer, the more obstacles you can prepare your clients for, the more likely they will be to clear the hurdles and proceed with the transaction. Through experience, we gain the knowledge to foresee problems before they happen. When you are representing a buyer in the purchase of an REO, there are another whole set of potential issues to deal with. The following are some obstacles experienced by other buyers in recent REO (bank owned) transactions.

UCC Filings: There are some liens acquired by previous owners that may or may not show up on the preliminary title report. Schedule B of the preliminary title report may indicate the presence of liens for water softeners or pools. Be sure to review preliminary title commitment in a timely manner. However, you should have a conversation with your buyer that the lien may not show up on the Schedule B. Buyers have reported water softener companies and pool companies showing up at their new homes to collect their pool equipment and water softeners due to non-payment.

HOAs: Any HOA liens should legally be wiped out through foreclosure; however, your REO buyer may end up in a situation where the HOA refuses to provide your buyer with services and amenities unless a previous owner’s debts are paid. It may, in fact, be easier for your buyer to negotiate a settlement of the previous debt with the HOA than to fight.

Squatters: In the event that your buyer is purchasing an REO property that is vacant and potentially not well secured, it may be possible that the buyer is greeted by squatters upon closing. The eviction of unwanted tenants shall be the responsibility of the buyer, and the buyer will be responsible for not only the proper eviction of the people but also the proper treatment of any personal property of said tenants.

There are obvious benefits to your buyer in buying bank owned listings including the wholesale pricing and the reduced escrow periods in comparison to short sale transactions. Allowing your buyers to make decisions with regard to the risk-reward situation by providing them with as much information as possible is the best way to assist them through the REO home buying experience.

New Waiver: Chinese Drywall

We are starting to see a new waiver for our buyers to sign. The addendum has been presented by asset managers for REO properties. It states that the seller has no knowledge pertaining to the presence of Chinese/defective drywall and offers the buyer the opportunity to either conduct a drywall inspection at the buyer’s cost or waive the buyer’s opportunity to conduct a risk assessment of the presence of Chinese/defective drywall.

During the national housing boom from 2004 through 2006, we experienced a shortage of building materials in the United States. Drywall was imported from China. Apparently some of the Chinese drywall contains and may at sometime emit a sulfur compound. The sulfur compound may corrode the copper in AC coils, refrigerator coils, and electrical wiring. Most of the complaints regarding the drywall are centered in Florida; however, the Chinese drywall may have been used in several high growth states including Arizona. The US Consumer Product Safety Commission reports that 681 claims have been made across 22 states regarding the drywall. The claims range from health concerns to electrical fires caused by the corroded wiring.

Impact on You: You do not need to become a drywall expert. Your buyer’s inspection will reveal unusual signs of corrosion. For more information, please visit the US Consumer Product Safety Commission at http://www.cpsc.gov/info/drywall/index.html.

ARMLS Rule Change for Short Sale Commissions

Back in March, ARMLS rules had changed to allow listing agents to disclose in the realtor remarks or short sale listings that the commission may be decreased by the sellers’ lender. The listing agent could disclose the terms of any decrease in the realtor remarks.

However, ARMLS has changed the rule again, reverting back to the former rule in which whatever commission is offered shall be paid regardless of any reduction by the sellers’ lender. The rule revision went into effect immediately, and ARMLS will start citing agents with commission verbiage in the realtor remarks on August 1^st. Please make sure that your listings do not contain any verbiage about changing commissions, and also make sure that you will be able to pay the commission you are offering.

Sureclose Reminder:

Per ADRE, all contracts and documents must be reviewed within 5 days of being signed by the buyer and seller. Please submit your paperwork to the office as follows:

New Contracts:

· Fax to 1.888.600.0161

· Email to newcontract@mysureclose.com

New Listings:

· Fax to 1.888.600.0162

· Email to newlisting@mysureclose.com

Add to Files:

· Fax to 1.888.600.0163

· Email to addtofiles@mysureclose.com

May Newsletter

2009-10-28T16:11:00.000-07:00

Broker Newsletter

May 15, 2009

In This Issue

· Short Sale Agreement Notice

· Appraisal Changes

· AAR Forms Updated

· SureClose Reminder

· Broker Blog

Revelation Links

Current RE Issues

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

Contact Us

480.722.9800 Office

480.802.1599 Broker Hotline

brokerreview@westusa.com

Short Sale Agreement Notification Process

Working effectively in today’s market requires the know-how to deal with both sides of a short sale transaction. The most common recent issues include “How do I communicate the bank’s approval to the buyer?” and “How do I make sure that the buyer in first position is going to move forward and perform before I decide to move on to the back-up offer?”

The Short Sale Addendum to the Purchase Contract defines that when the seller’s lender approves the short sale, the seller will deliver to the buyer an “Agreement Notice”. The notice should define the terms of the bank’s approval.

Your Listings: When you receive notice that your seller’s lender has approved the short sale of the subject property, you need to provide the agreement notice immediately. One very effective way to provide that notice and ensure a clear response and direction from your buyer in first position is to use an addendum with the following verbiage:

“This shall serve as Agreement Notice of the Short Sale approval by the Seller’s Lender. This contract is approved with the following terms (include the required close date, sales price, and any other terms required by the seller’s lender). Buyer agrees to these terms and will proceed with the contract by signing and delivering this addendum back to seller within 24 (or 48) hours OR this contract will be deemed cancelled due to the unfulfilled short sale contingency.”

This finite verbiage requires action and commitment by the buyer. If the buyer does not commit to move forward, you effectively terminate the contract to allow your seller to move on to a back-up offer.

Appraisal Changes

On May 1^st, the Home Valuation Code of Conduct went into effect. This new code was adopted to improve the accuracy of appraisals. All Freddie Mac and Fannie Mae loans and loan servicing companies must follow the code which is intended to limit the amount of influence a lender can have on the appraised value of a property.

At this time, the change does not affect FHA, VA, USDA loans.

Before: Lenders ordered appraisals for your buyers directly from local appraisers.

Now: Lenders order appraisals from Appraisal Management Company (AMC).

Impact on You: Agents, buyers, and sellers need to be prepared for some additional delays in getting appraisals ordered, returned, and modified. In many, even most appraisals, there are minor errors or typos in addresses, amounts, etc. Currently, an underwriter can place a call and get those errors corrected directly by the appraiser. Now, requests must be made through the AMC which may cause delays in the final stages of approval. The best way to handle the change is to communicate the change to your clients ahead of time and prepare them for the possibility of delays. Additionally, it is important to make sure appraisals are ordered early in the process to ensure timely delivery.

AAR Forms Updated

Hopefully you’ve noticed the new look and feel of most of the AAR contract forms. For the most part, the changes are only in the formatting, but please be aware of the actual verbiage changes in the following forms:

· Real Estate Agency Disclosure and Election (READE)

· Loan Status Update (LSU)

· Lead Base Paint Disclosure (for both Sales and Rentals)

· Cure Notice

Please make sure that you are using the most current forms.

SureClose Reminder

File Completion: As the closing date of your transactions approach, please proactively login to SureClose again and check the status of your transactions to ensure that your file requirements are met so that you will be paid in a timely manner. As each requirement is reviewed and met, it is marked “complete”. You can see which items have been marked complete and which are remaining under the “Documents” tab. Once all requirements are met, the top line will be marked “Your File is Complete”.

If your file is marked “Incomplete”, take a look at the remaining requirements and upload, email, or scan the remaining requirements.

You can also get a quick snapshot of the status of your transaction by taking a look at the “Status” tab. Requirements that have been fulfilled will be in green in the top section under “Completed Items” while the remaining requirements will be listed at the bottom in blue under “Scheduled Items”.

Submitting Files: Remember to submit your paperwork one of the following ways:

1) For a new file, include an A100 or Listing Coversheet and…

· Email to azjacquet@mysureclose.com

· Scan into the black and white copier/scanner in the office.

2) For additions to an existing file, include the “Add to File” coversheet and…

· Email to azjacquet@mysureclose.com

· Scan into the copier/scanner

· Add to file paperwork directly into your electronic files if you have ProView and even in some instances with the basic view.

Archive Approaching: The SureClose system has an automatic archival process in which it archives files that have not been touched in 85 days. The system will send you an email warning you that your 85 days is approaching. All an agent needs to do is work in the file to restart the clock. This could mean sending an update message, completing a task, uploading a document, recording a status item or some other change. The 85 days is a system setting that we cannot change, but it would be unlikely that you really not perform any work on a file in 85 days anyway.

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.

April Newsletter

2009-10-28T16:09:00.000-07:00

Broker Newsletter

April 15, 2009

In This Issue

· ARMLS Rules Change

· Noise Map Requirement in Surprise

· Updated Tax Credit Info

· SureClose Reminder

· Legal Q & A

· Broker Blog

Revelation Links

Current RE Issues

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

Contact Us

480.722.9800 Office

480.802.1599 Broker Hotline

brokerreview@westusa.com

New ARMLS Rules

New ARMLS rules go into effect for subscribers on May 1, 2009. Follow the link in the left margin to the website and login to see all of the specific verbiage of the changes, but the rules below represent some of the biggest changes that may affect your business immediately.

You need to be aware that the penalties for ARMLS rule violations are more immediate and more costly. Additionally, changes to the rules regarding disclosure of appropriation of commission in short sale transactions are immediately relevant.

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 8^1/2 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

The office transition to SureClose is complete. Hopefully you are enjoying the new tool and making the most of the ProView extended features. We have just a few specific reminders to ease the new process for you.

As we mentioned in the Office Meeting earlier this month, we are processing over 100 new listing and over 100 new contract files each month. We need your help to ensure a smooth and timely review process and to prevent requiring you to upload your documents more than once.

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

February Newsletter

2009-10-28T16:08:00.000-07:00

Broker Newsletter

February 15, 2008

In This Issue

· Tax Credit for Buyers

· HUD Homes - $100 Down

· Broker Blog

· DocuSign –Paperless Tool

· SureClose Update

· Area of Expertise

· Affidavit of Disclosure

Revelation Links

Current RE Issues

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 Buyer Advisory

Renters’ have a right to SPDS. Also, Buyer Advisory now available in mobile format for use on your phone.

Read Our Online Broker Blog

Continuing Education Requirements

Enter your CE hours as you take them on the ADRE website

Contact Us

480.722.9800 Office

480.802.1599 Broker Hotline