2. Agency
PowerOfRelationships
Matthew Rathbun, Broker
ABR/M, AHWD, CDPE, CRB, CRS, e-PRO, GREEN, GRI, SFR, SRS
Agency Relationship and Duties
What You re In For Today
Commission
Personal Service Agreements
Risk Management
Agent
Relationships and
Duties
Agency is A
Term of Art
3. Great, letâs find out
how we got here...
So, You ve
Decided To Get
Married!
...and how we keep
this relationship safe
Client
What YOU Say and Do Can Establishes Who THEY Are
Customer Independent
Contractor
Dual
Agency
Designated
Agency
Non-Client
(The Rest Is Paperwork)
HONESTY
As in all relationships, we have some
stuff we have to do...
OBEDIENCE
LOYALTY
CONFIDENTIALITY
DISCLOSURE
ACCOUNTING
REASONABLE CARE
4. Personal
Service
Agreements
[Yes, you MUST, SHALL, WILL,
have a written agreement before showing
property, giving advice or listing a property.]
Agency disclosure MUST be made in
writing prior to substantial discussions
about a speciďŹc property or service.
(DPOR memo August 2012)
⢠Listing Agreements
⢠Buyer Agreements
⢠Landlord Agreements
⢠Tenant Representation
⢠Property Management
⢠Independent Contractor
What Has To Be In Writing?
Implied Agency
Genesis
Expressed Agency
5. (Tamed)
What Type of Agreement Do You Have?
(Wild)
Exclusive Non-Exclusive
BeneďŹts Of The Agreement
Outlines
Mutual
Responsibility Defines
Loyalty
Ensures Youâve
Disclosed All That You
Must
Shows
Evidence of
Agreement and
Disclosures
Required
By Law
Limits
Role
The Forms
9. So, When DoesThat GetTurned In?
A licensee may act as a dual representative only with
the written consent of all clients to the transaction.
Such written consent and disclosure of the brokerage
relationship as required by this article shall be
presumed to have been given as against any client
who signs a disclosure as provided in this section.
Dual and Designated Agency Tolerated
54.1-2139
5 Required Elements
Virginia s Dual Agency Disclosure
⢠Licensee may have already provided guidance to one
of the two parties.
⢠Licensee cannot provide advice (including
recommended repairs) to the buyer, or advice about
suitability
⢠Licensee cannot provide advice on disputes
⢠Clientâs inexperience is not a factor
⢠Either party may engage another Realtor after
ratification
10. ⢠Revocation
⢠Renunciation
⢠Death of Principal / Agent
⢠Insanity
⢠Bankruptcy
⢠Illegal
⢠Destruction
⢠Expiration
Terminating Relationships
Commissions
⢠MLS Dictates
⢠MRIS Article IV, Section 15
⢠Code of Ethics Considerations
⢠Arbitration
⢠Who Do You Work For?
Negotiating The Commission
Standard of Practice 3-2 revised
Any change in compensation offered for
cooperative services must be communicated to
the other REALTORÂŽ prior to the time that
REALTORÂŽ submits an offer to purchase/lease the
property. (Amended 1/10)
Changing the Commission
11. Procuring Cause
Unbroken Chain of Events
resulting in a closed
transaction.
Risk
Management
Standard of Practice 16-20 revised
REALTORSÂŽ, prior to or after their relationship
with their current firm is terminated, shall
not induce clients of their current firm to
cancel exclusive contractual agreements
between the client and that firm. This does
not preclude REALTORSÂŽ (principals) from
establishing agreements with their
associated licensees governing assignability
of exclusive agreements. (Amended 1/10)
Taking The Client Along
⢠Imputed Knowledge
⢠Imputed Notice
⢠Material Facts Disclosure
⢠Latent Facts Disclosure
Conveying What You Know
12. ⢠Who Has Coverage Under E and O?
⢠Who Has Agency Relationship?
⢠What Is The Agentâs Limitations?
⢠Who Getâs Paid?
Company Transfers
⢠False information provided by Seller
⢠Revealing information required by law
⢠Misrepresentation made by sub-agent
(unless broker / licensee should have known)
⢠Negligence or gross negligence or intentional
acts of the Assisting Broker / Salesperson
Limit To Liability
Facebook.com/mattrathbun
@mattrathbun
Matthew@TheAgentTrainer.com
www.TheAgentTrainer.com
YouTube.com/MattRathbun1
CE - 61522
PLE - 61271
13. Real EstateTechnology
TheAgentTrainer.com | @MattRathbun
Matthew Rathbun
ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS
TheAgentTrainer. com
@MattRathbun
Husband and Father
Broker
Thinks Heâs Funnier Than He IsâŚ
Disrupter
Story Teller
TheAgentTrainer .com/TechRisk
Resources | SlideDeck | Videos | Tools
TodayâsJourney
Trends
Tools
Techniques
Troubles
14. Share Your Ideas
As We Go!
It is not the strongest of the
species that survive, not
the most intelligent, but
the one who is most
response to CHANGE.
- Charles Darwin
Trends
YouTube Moment
Microsoft Vision
26. Cyber Stalking
BadBehavior
â˘Centralized Showing and Lockbox
⢠Agent Impersonations Online
⢠Access of Client Databases
⢠Shared Lockbox Access
⢠Shared MLS Entry
⢠Computer Threats
⢠(By and Against Agents)
⢠Defamation
⢠Unlicensed Practice of Law
⢠Breach of Confidentiality of Clients
⢠Copyright Violations
⢠Untrue Statements
⢠Trademark Considerations
⢠Necessity for Required Disclosures
BadBehavior
LegalAdvice
27. Techniques
Google. com
GoogleAlerts
www.Google. com/Alerts
PolicyConsiderations
⢠Instruct agents and those posting to use caution when
posting;
⢠Realize that blogs can be viewed as an advertisement
and follow all applicable rules; and
⢠Donât select and edit messages â it could subject you to
greater liability because you are taking a more active role
in the publishing the contents.
28. PolicyConsiderations
⢠Further steps you can take to reduce your liability:
⢠Post only material you own, you have permission to
use, or that is with the scope of fair use (generally
includes review, news reporting, teaching, or scholarly
research);
⢠Remove infringing content immediately;
⢠Have a well-crafted Terms of Use
Facebook.com/mattrathbun
@mattrathbun
matthew@cbeva.com
YouTube.com/MattRathbun1
ThankYou
29. Risk Management
TheAgentTrainer.com | @MattRathbun
Matthew Rathbun
ABR, ABRM, AHWD, CDPE, CRB, CRS, ePRO, GREEN, GRI, SRES, SFR, SRS
TheAgentTrainer.com
@MattRathbun
Husband and Father
Broker
Thinks Heâs Funnier Than He IsâŚ
Heâs Been Around
Story Teller
What Are You Facing Today?
Before you attempt to rock
someone elseâs house, make sure
you know the condition of
Your Own
30. Be The
of The
Source
Source
www.Varealtor .com
⢠Starting A New Firm
⢠Risk Management Policies
⢠Doâs and Donâts
⢠Fair Housing Policy
⢠Do Not Call Policy
⢠Social Media Policy
⢠DPOR Guidelines
⢠Policy Manual Template
ConsumerFinance.gov
Elitescoop. com/cfpb2015
31. Powers
â˘Authority to Create Laws
â˘Subpoena Powers
â˘Power To Author Rules
â˘Create / Modify Forms
â˘Identify Unfair Practices
â˘Arbitrate
â˘Enforcement Authority
Background
â˘Dodd-Frank Act
â˘1,188 Pages
â˘Merges RESPA and TILA
Goals
⢠Easier-to-use Mortgage Disclosure Forms
⢠Improve Consumer Understanding
⢠Aid Comparison Shopping
⢠Prevent Surprises at Closing Table
The Loan Estimate
Provided to consumers within three business days after
submission of loan application
Replaces early TIL statement and GFE
Provides summary of key loan terms and estimates of loan and closing costs
Idea to promote comparison shopping
The Closing Disclosure
Received by consumers three business days before
consummation
Replaces final TIL statement and HUD-1 Settlement Statement
Provides detailed accounting of transactions
New Forms
32. New Forms HUD-1 = Closing Disclosure
GFE = Loan Estimate
Loan Estimate Closing DisclosureOld GFE Old HUD-1
3 days from application 3 days prior to closing
7 days prior to closing
(waiver for bona-fide emergency)
Revision Required
Enforcement
$5,000-$2500 Per DAY, with $1,000,000 cap
33. Escrow
Law
Review
Maintenance of Escrow Accounts
| Broker Responsible | Account Marked Escrow | Federally Insured |
Upon the ratification of a contract, earnest money deposits and down payments
received by the principal broker or supervising broker or his associates must be placed
in an escrow account by the end of the fifth business banking day following ratification,
unless otherwise agreed to in writing by the parties to the transaction, and shall
remain in that account until the transaction has been consummated or terminated.
18VAC135-20-160 B-1
Disbursement: Mutual Consent
34. Disbursement: Broker Discretion
⢠Letter of Notice
⢠Hand Delivered
⢠Certified Mail
⢠30 Day Notice
⢠If within 90 days,
notice can be by
electronic notice,
as outlined in the
contract
Disbursement: Court System
Disbursement: Interpleader
Change in escrow cap
for hearing in General
District Court versus
Circuit Court
Interpleader - Third
party surrendering a
dispute to the court on
behalf of two other
parties.
2015 Regulatory Update
35. Continuing Education
Continuing Education hours taken in the last six
months of a licensing cycle, which are in excess of
those needed for re-certification, will be rolled over
to the next 2 year cycle â¨
Unlicensed Assistants
⢠Cannot Show Property
⢠Must Be Paid a Salary/Hourly
⢠Cannot Give Opinion/Advice
⢠Cannot Hold Open Houses
⢠Measure Homes
⢠Host Walk-Throughs
⢠Can Act as Courier
⢠Can Organize Documents
⢠Can Schedule Appointments
⢠Can Place Signs
⢠Can Produce Marketing Under
Supervision of Agent
⢠Employment Is Subject To
Approval of Broker
EMD Disbursement
Once parties have agreed to order the
disbursement of the EMD, the broker shall make
disbursement to the receiving parties within 20
days. â¨
â¨
Document Retention
Agents are required to turn certain documents a
timely manner, and the Broker is required to retain a
copy of the following documents for 3 years. The
documents will be complete and legible.
Includes Settlement Statements, Personal Service
Agreements and Executed Agreements.
â¨
â¨
36. Advertising
Advertisement on âelectronic mediaâ requires the
following:
⢠City and state of Branch office you report to â¨
⢠Name of Firm â¨
⢠Agentâs name â¨
These disclosures must be on the viewable page
of the website on electronic media or no more
than one click away.
â¨
Advertising
For Sale and For Lease signs that are placed on
properties must have the following:
⢠Firm name â¨
⢠Firms PRIMARY telephone number â¨
⢠Note: Agents with personal signs, must update them to
have the Firmâs telephone number on them. Agents may
add their mobile number, but that would be in addition to the
Firm number. There can be no confusion as to which
number is which on the sign. â¨
Advertising
Agentâs business cards must have:
⢠Firm name â¨
⢠Agentâs name â¨
⢠Agentâs contact information which may be
phone number, web address or email address â¨
â¨
Family Disclosure
Disclosures when representation for a member o
the agentâs family must be disclosed to all parties
at the first substantive conversation regarding
the specific property. â¨
â¨
â¨
â¨
37. Prohibited Acts
Failure of agent to turn in all EMD checks,
contracts, listing agreements, etc... in a timely
manner to the firm.
â¨
â¨
â¨
Prohibited Acts
⢠Practicing with an expired license is a violation â¨
⢠Agents who allow their license to expire may not be
paid any commissions during that time in which their
license is expired or inactive. In the past we could pay
commission to agents for work done prior to expiration or
the license going inactive. That is no longer the case. â¨
⢠Absolutely no real estate related activities may occur
by an agent who's license is inactive or expired.
Prohibited Acts
Unsupervised access to property is now a violation. In
the past, only the lockbox rules required an agent to
remain with clients when the agent opened the
house. â¨
Prohibited Acts
Agents may not sign or initial documents on the
clientâs behalf without prior written permission or
authorization. â¨
â¨
38. Prohibited Acts
Agents may not submit copies of the same EMD
check for more than one offer. â¨
â¨
â¨
Emerging Issues
Green Washing
⢠FTC Sets Guides for Enviromental Claims
⢠Be Clear On Your Experience
⢠Retrofitting
⢠Tax Credits
⢠Geothermal Systems
⢠Certifications
⢠Re-Testing
⢠Expert Testers
Negligent Referrals
39. Recommended Language
âThe following list of vendors provides various services to buyers and
sellers in Fredericksburg, VA. Iâve developed this list to assist clients while
in a real estate transaction.
Neither I nor [Brokerage Name] warranty these providers or their work.
Consumers are encouraged to research their choices by whatever
means they deem necessary. Clients are free to use any vendor that
they prefer. This list is simply a starting point and clients are free to
search online or other trusted resources to obtain referrals.
If you are looking for repair providers and your home is built in the year of
1978 or before, please check the EPA website to find vendors, as special
training is needed for certain work to be performed on your home. The
providers listed below are not guaranteed to meet the criteria of the EPAâ
Coming Soon and Pre- MLS
⢠Defined
⢠Who Benefits
⢠Documentation
⢠Advertising Ability
⢠Insurance
⢠Agency Coverage
⢠Compensation
What E & O Doesnât Cover
⢠Injury or Property Damage
⢠Fair Housing
⢠Fraudulent Acts
⢠Employment Issues
⢠Assistants
⢠Staff
⢠False Advertising
⢠Patents and Trade Secrets
⢠Owner Agent Listings
⢠Gross Negligence
Virtual Staging