Legal FAQs

https://www.nar.realtor/money-laundering-and-terrorism-financing The crime of money laundering continues to be a growing area of concern in the United States. Therefore, law enforcement agencies and the financial sector devote considerable time and resources to combatting these illegal financial activities. While money laundering is most often associated with banks and other financial institutions, real estate transactions can also… Continue Reading NAR on Money Laundering

Storms and Forms If you ever have a buyer or seller or tenant or landlord impacted by a natural disaster or a man-made disaster/disorder always recommend the parties obtain legal counsel asap. You are ethically bound to make this recommendation under the NAR Code of Ethics, Article 13. The law firm can discuss statutory and… Continue Reading Storms and Forms

NAR Code of Ethics: Article 9 Realtors®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of… Continue Reading Making the Copies…

Owners association disclosure calls to the hotline revolve around two main post-closing issues: (1) fees for the owners association (e.g. fees are increasing dramatically, the seller concealed a $40,000 special assessment) and (2) the rules/management of the owners association (e.g. I can't park my RV in the driveway, the board enforces nitpicky rules, the manager… Continue Reading Owners Associations

Upon flood, storm, wind, hurricane, fire, earthquake, or other whole/partial damage to the Property, the buyer or the seller have a window where either can timely/properly terminate the deal. If neither the buyer nor the seller timely/properly terminate the deal within the window, then the seller is obligated to repair the damage or provide an… Continue Reading SCR300 SCR310 Residential Contract’s Fire/Casualty/Injury Section

SCR311 Due Diligence addendum allows a buyer to timely and properly terminate. Sellers have agreed to maintain the Property in Section 3 of SCR310 contract. The SCR310 contract has provisions for casualty/injury and re-inspections and seller disclosure and mold/fungi. The seller disclosure has many pertinent questions for potential disasters including water questions and contamination questions… Continue Reading Hurricanes, Storms, Floods, Earthquakes, Natural and Man Made Disasters

SCR mediators have long mediated commission disputes between brokerages prior to formal arbitration hearings. In mediation, the money is divided between the brokerages in some percentage per the brokers' decisions. In arbitration, one party gets the money per the arbitration hearing panel's decision. SCR mediators have long mediated earnest money disputes between buyers and sellers.… Continue Reading Sign up for October 1, 2, and 3 2018 mediator/ombudsman training

Here is the link to the SCR mediation information: https://screaltors.org/mediation/ Here is the link to the SCR mediator list: https://screaltors.org/wp-content/uploads/2017/11/MediatorPamphlet2016.pdf Recommend the parties seek legal counsel asap. The parties will talk and decide which mediator they want to hire and where/when to meet. Then, the parties will meet and split the money in some percentages… Continue Reading Earnest Money Disputes, BIC Holding Earnest Money (Mediation/Litigation)

Section 5, Compensation Specified on Each Listing, in the NAR Model MLS Rules provides in pertinent part that compensation “…offers are unconditional except that entitlement to compensation is determined by the cooperating broker’s performance as the procuring cause of the sale (or lease)…” It can be a potential MLS rules violation to do otherwise. Posted… Continue Reading Don’t Put Conditions (other than procuring cause) on Coop Compensation in MLS

State law and the NAR code of ethics address your risks: State law: SECTION 30-2-50. Obtaining personal information from state agency, local government, or other political subdivision for commercial solicitation; penalty. (A) A person or private entity shall not knowingly obtain or use personal information obtained from a state agency, a local government, or other… Continue Reading Be Very Careful About Using the ROD/MLS/GIS as Your Personal Lead Generation System