International, IT Real Estate News

Before you even think about committing a real estate crime click the red button.     real estate fraud: Tampa Contractor Who Defrauded Hundreds of Investors Gets 4 Years - 06/10/14 01:52 PM Tampa Contractor Sentenced to Four Years in Federal Prison for Defrauding Hundreds of Investors in Connection with Home Solutions of America Inc. Stock Brian Marshall Taken into Custody Immediately Following Sentencing DALLAS—Businessman Brian Marshall, 50, of Tampa, Floriad, was sentenced today by U.S. District Judge Barbara M. G. Lynn to four years in federal prison for defrauding investors in connection with the sale of Home Solutions of America Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Marshall was remanded immediately to custody following the sentenc...
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Do you have withdrawn, inactive   &   expired listings   posted on ActiveRain ?     Thousands of withdrawn and expired listings reside on the servers of social and professional real estate networks.   Agents find these withdrawn and expired listings, contact sellers and ask them to relist their homes.     What could happen to you if you call the seller of an expired listing who just so happens to be included in the National Do Not Call Registry ?     If the former seller you call files a complaint you and your broker can be punished.         You and your broker could be indicted for violating the laws governing the National Do Not Call Registry and fined thousands of dollars.   Calling expired listings which are included in the National Do Not Call Registry violate federal law and NAR's...
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Before you even think about committing a real estate crime click the red button.     real estate fraud: Alabama Real Estate Firm Hit With $500,000 RESPA Fine - 06/09/14 11:23 AM   Alabama Real Estate Firm Hit With $500,000 RESPA Fine The Consumer Financial Protection Bureau, which took over enforcement of the Real Estate Settlement Procedures Act (RESPA) from HUD several years ago, entered into a consent agreement with an Alabama real estate company that says the firm used inadequate disclosure language in an affiliated business disclosure. Among other things, the firm in question was assessed a civil penalty of $500,000! The consent agreement says the firm's disclosure form didn't properly reflect a sample form developed by HUD. To read or download the consent order, go HERE. … (0 comm...
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  Alabama Real Estate Firm Hit With $500,000 RESPA Fine The Consumer Financial Protection Bureau, which took over enforcement of the Real Estate Settlement Procedures Act (RESPA) from HUD several years ago, entered into a consent agreement with an Alabama real estate company that says the firm used inadequate disclosure language in an affiliated business disclosure. Among other things, the firm in question was assessed a civil penalty of $500,000! The consent agreement says the firm's disclosure form didn't properly reflect a sample form developed by HUD. To read or download the consent order, go HERE.
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By David Saks
((retired))
#2755 If you forget to renew your real estate license your violating a state law and can be fined. Is this true or false ? Take your time. The solution is posted below the wildlife photo. A. False Your not violating the law if you don't renew your real estate license. If your practicing real estate without a license your in trouble, however.
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By David Saks
((retired))
#2754 During a title search the attorney discovered that an heir to an estate had not properly signed a deed before the property was transferred. This defect of title could most likely be cured by a letter of estoppel. Is this true or false ? Take your time. The solution is posted below the royalty free wildlife photo. A. False The defect could be cured by a quitclaim deed which will convey an interest in a property that the grantor had at the time the quitclaim deed was executed. A letter of estoppel, or estoppel certificate, is a legal document that will prevent a person from asserting any rights or facts that appear to be inconsistent with any earlier actions or statements that he or she may have made.
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By David Saks
((retired))
#2753 A home was built several years ago and was actually constructed without a functioning heat or air conditioning system. If an appraiser were to use the cost depreciation approach he would refer to this exclusion of heat and air in the buildiong construction as external obsolescence. Is this fact true or false ? Take your time. The solution is posted below the royalty free wildlife photo. A. False The absence of heat and air is considered functional obsolescence whicch would result in loss of value because of outdated construction or design. External obsolescence is a loss of value which occurs as a result of factors which occur outside of property, such as a property located adjacent to an abandoned factory building. External obsolescence may also be referred to as 'external inadeq...
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By David Saks
((retired))
#2752 An appraiser was contacted an asked to appraise a home. There have been quite a few sales in the area due to the recent economic climate and the lower of prices. The best type of appraisal for the appraiser to use in this situation is an income capitalization approach to the appraisal. Is this true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The type of appraisal method best served in this example is the 'sales comparison approach' which is also a market data approach or a comparable sales approach which will estimate the market value of a home by comparing the home to recent sales of homes which are comparable to our subject home in size, amenity, and equality to other recently sold properties within the same area. An income capital...
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By David Saks
((retired))
   #2751 If money is held before the acceptance of an offer of a sales contract for the purchase of a home, the money belongs to both the seller and the buyer. Is this true or false ? Remember to take your time. The solution is posted below the wildlife photo. A. False The money belongs to the buyer only and is usually a deposit toward the purchase price
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This was my original post. But since it was shuffled away in the blog roll here it is again for your consideration! ========================   Do you have withdrawn, inactive and expired listings posted on ActiveRain ? Thousands of withdrawn and expired listings reside on the servers of social and professional real estate networks. Agents find these withdrawn and expired listings, contact sellers and ask them to relist their homes. What could happen to you if you call the seller of an expired listing who just so happens to be included in the National Do Not Call Registry ? If the former seller you call files a complaint you and your broker can be punished.   You and your broker could be indicted for violating the laws governing the National Do Not Call Registry and fined thousands of d...
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By David Saks
((retired))
  #2750 Sally defaulted on her mortgage and subsequently missed a few payments in the process. He lender had to begin the foreclosure process. Before the foreclosure slae took place Sally paid back the entire amount and cured the debt. Sally has actually excercised her rights of statutory equitable limitation. Is this true or false ? Take your time. The solution is posted below the wildlife photo. A. False Sally exercised her 'equitable right of redemption' . There's no such thing as a statutory equitable limitation. The equitable right of redemption is the right of a debtor to to redeem his or her interest in a property before the foreclosure sale by paying the full amount of the debt.
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By David Saks
((retired))
#2748 Money may be given to a broker to hold in trust or escrow  for a buyer to pay for a home inspection. Is this true or false ? Take your time. The solution is posted below the wildlife photo A. This is true. A broker may receive money from a buyer to be held for a home inspection. A broker may also hold a good faith deposit. Can you think of anythoing that a broker can't retain in escrow or trust for a buyer, such as the money to purchase new drapes ?
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By David Saks
((retired))
  #2748 Money may be given to a broker to hold in trust or escrow  for a buyer to pay for a home inspection. Is this true or false ? Take your time. The solution is posted below the wildlife photo A. This is true. A broker may receive money from a buyer to be held for a home inspection. A broker may also hold a good faith deposit. Can you think of anythoing that a broker can't retain in escrow or trust for a buyer, such as the money to purchase new drapes ?
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By David Saks
((retired))
#2747 If the commission rate a listing broker has with a seller becomes a source of contention between the seller and the broker, the broker can change the commission structure at will without the consent of the selller, but the seller has the right to refuse the change to the commission structure. Is this true or false ? (watch out, it's tricky) Take your time. The solution is posted below the royalty free wildlife photo.   A. It's true and false. The commission rate has to be adjudicated between both the broker and the seller and the broker can't arbitrarily or randomly decide what the commission is going to be without the consent of the seller. On the other hand, the seller has the right to refuse any commission revision.
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By David Saks
((retired))
   #2746 Any time a seller or buyer wants to create an agency relationship with a broker all the principal has to do is agree to the agency relationship orally. It actually doesn't have to be in writing. Is this true or false ? Take your time. The solution is posted below the wildlife photograph. (don't blow this one)  theory A. True It's possible, and legal, to create an agency agreement by either oral or written means. Some rule of evidence must be applied to confirm the agency relationship if it's an oral agreement. Make sure that you and your client understand what your relationship will be and what the firm will do for your client. You may want to have a written agreement.  There are firms that are willing to represent and assist a client as a buyer's agent without a written agreem...
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By David Saks
((retired))
  #2745 A house sits on top of a hill not far from the city landfill. You can see the dump trucks in the destance, but a nice forest is nearby. The agent says to the buyer, "This is absolutely one of the most beautiful views you'll find in the county, and this home is constructed of some of the best materials you'll find anywhere". The agent is committing fraud. Is this true or false ? Take your time. The solution is posted below the wildlife photo. A. False The agent is "puffing". Puffing is an exaggerated expression more or less praising the character of a property and has little to do with actual fact.
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By David Saks
((retired))
#2744 Any time a broker takes a listing the seller has given the broker the right to enter into a firm contract on behalf of the seller and decide the selling price if the seller can't decide. Is this fact true or false ? Take your time. The solution is posted below the wildlife photo. A. False The broker's listing agreement with a seller does not give the broker the authority to enter into a legal contract on behalf of the seller, nor establish a selling price for the property. The seller sets the price.
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By David Saks
((retired))
#2743 When we talk about dual agency we're usually talking about a form of agency which is considered legal as long as the agent receives the same amount of money and compensation from both of the principals involved in the agency agreement. Is this considered to be true or false ? Remember to take your time. The solution is posted below the wildlife photo.   A. False Dual agency is legal in most every state as long as both the buyer and the seller are told that the agent is representing boith of them, and both the buyer and the seller have given their written consent to dual agency. The form of compensation is not a concern of the legality of dual agency, although compensation might create some questions at closing.
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By David Saks
((retired))
#2742 Your company listed a home for seller A. B came to see you about the house and you told B that you couldn't give them any information about A's house until they signed a buyer's agency agreement. Does B have to sign a buyer's agency agreement ? Take your time. The solution is posted below the wildlife photo.     A. No Your company has the right to share information about A's property, B doesn't have to sign a buyer's agency agreement, and has B has a right to information which may be shared with them about A,s property. An agent doesn't have to resort to facilitator status or dual agency to share information with a customer.
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By David Saks
((retired))
   #2741 An agent has an obligation to perform the duties in an agency relationship of confidence, obedience, accountability, loyalty, disclosure to both the principal who grants the agent the authority to deal with third parties, and any third parties making inquiries. Is this true or false ? Please remember to take your time. The solution is posted below the wildlife photo. A. False The agent only owes the duties of confidence, obedience, accountability, loyalty and disclosure to the principal who hires the agent. Third parties, and the principal, are entitled to the performance of duty which demonstrates reasonable skill and care for all parties.
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