Actually this should be called "what agents need to know", but consumers do too and the headline sounded more intriguing this way.
I took a "core" clock hour course recently. Every license renewal period real estate agents are required to take this course, which is updated annually. Licenses renew bi-annually, tho, so you could miss important updates if you don't take the class every year.
There are some big changes happening this year - July 1st to be exact. These changes affect agents AND consumers in a big way so I wanted to do a public update so real estate customers know what changes effect them the most. (Please keep in mind this update is for Washington state only.)
John Hanson of Olympus Real Estate School from Olympia taught the class. Below are my notes only from the class. The instructor handed out a very nice take-away packet with all of the important information in detail for attendees. It was a full class!
John started with a motivational/humorous story but my takeaway was this: "Real estate agents are catalysts, they make things happen."
License Law Changes
There are some big changes coming this year for Washington real estate agents. The biggest change is that every agent will be licensed as a Broker, it will no longer be called "Salesperson". The levels are broker, managing broker, and designated broker. Agents won't have to do anything to begin using the new title July 1st. There is no new authority given to the licensee, just a name change. Associate Brokers become Managing Brokers. Any real estate company in WA state must be licensed as a "firm" and every "firm" must have a Designated Broker (a Managing Broker from that office).
Agent teams require the lead agent to be licensed as a Managing Broker. This provides an added layer of qualified and educated supervision between the Designated Broker and the individual agents who might make a misstep. Anyone who has a supervisory position over another (say an agent who as an assistant) will have to be licensed as a Managing Broker.
Agents (brokers) with less than 2 years experience will have to have every transaction reviewed by the Managing or Designated Broker and the supervisor's initials and date must be on the first page of the contract within 5 days of mutual acceptance..The State Audit department will be looking for this.
Distressed Properties and Short Sales (SS)
Did you know it costs the lender $50k to go through a foreclosure?
Advising a Seller on whether they should go the route of a SS is perhaps overstepping your expertise. Being knowledgeable as to who is appropriately licensed and prepared to handle the situation is often the best service that we can give. There are some lingering possibilities that you should not have been doing what you were doing (helping with a SS).
First ask them if they can work something out with their lender.
Maybe they should be renting the property out?
We have a statute duty (not fiduciary) to put the sellers interests ahead of our own - which may mean we don't get paid.
New Carbon Monoxide Statute
Do you remember the December 2006 Wind Storm of the Century? I do, because I got caught in a flash flood shortly before the wind storm hit and my MINI Cooper ended up blowing its engine because it "snorkeled" on West Marginal Way when I drove through maybe two feet of water for 30 feet - twice - in my attempt to beat the storm home. We were without power for over 24 hours but were fine because we had installed a wood stove fireplace insert with a cooktop and had oil lanterns. We were warm, we were able to cook, and although the 100 year old cedar tree that "made" our property split and hit the neighbor's house, we suffered no other damage.
Some people, though, lost their lives during the recovery period of that storm from cooking indoors with a barbecue or running a generator to provide electricity to the house from an attached garage and fumes being sucked in to the living areas. Eight people died and over 1,000 people went to the emergency room as a result of carbon monoxide poisoning.
Washington State has enacted legislation that is effective January 1, 2011 requiring all new construction to be equipped with state mandated carbon monoxide detectors. By January 1, 2013 all residential dwellings must be equipped with the alarms. Owner occupied single family residences legally occupied before the effective date of this act are exempt. But for anything that is sold thereafter must have the alarms installed when going on the market - otherwise it is a material defect that must be disclosed on the Form 17 (Property Condition Report by Seller).
As an agent I am responsible to make my clients aware that to list their home for sale they need to install the alarm. And as a buyer, my client needs to be sure a state certified alarm is installed before closing.
Labor and Industries Requirements
Even though real estate agents are independent contractors. real estate firms are required to set up an account with Washington State Labor and Industries. All real estate licensed affiliates are required to be covered by and it is important for them to know that. It is paid for by the for by the broker (and often the expense is passed on to the agents in office costs). The amount of hours each agent works in their business determines the rate the firm pays for that agent. If an agent is injured while in the office or while touring a property, then there is worker's compensation available through L&I. Become more familiar with your coverage at http://www.lni.wa.gov/
Referrals of Title Insurance Providers
A new RCW 18.85.053 says the real estate licensee can not give any fee, kickback, payment, or other thing of value to any other real estate licensee as inducement or reward to use a particular title insurance providers.
It goes on to say that real estate licensees or a person who has a controlling interest in a real estate business is forbidden to solicit or accept (or both) anything of value from a title insurance company or agent while the title insurance company or agent is not permitted to give anything.
It further states that a licensee (assume broker in control of an office) is prevented from stopping a title insurance company or agent from delivering printed promotional material to other licensees so long as the material is legitimate.
So, a real estate licensee cannot:
1. Give gifts, kickbacks, or money
2. Accept money, or things of value
3. Deny access to competing title companies, or
4. Require consumers to obtain title services from a title company where the licensee has an interest.
Home Inspector Referrals
Effective 1/31/09 designated brokers were to have a written policy in place that establishes a procedure for the referral of home inspectors to buyers and sellers. WAC 308-124C-050 requires full written disclosure by the licensee of any previous relationship with a home inspector that is being referred to a client, prior to the service being performed.
It is always better to over-disclose than under-disclose. It is good policy to disclose, disclose, disclose.
Property Management
Evidently sales agents have been engaging in property management activities without the broker even knowing it was going on. That has been changed with WAC 308-124D-215 which states there must be a written management agreement and it must be signed by the property owners and the designated broker. At a minimum the management agreement must state:
The firm's compensation
The type and number of units in the project, or square footage (retail or commercial space)
Authorization to collect and disburse funds and for what purpose
Authorization to hold security deposits and the manner of disbursement
The frequency of furnishing summary statements to the owner
All properties rented or leased by the firm must be supported by a written rental or lease agreement.
As the self-titled "resident green agent" in High Point, I wanted to give a quick update - even though it's been less than 3 weeks since my last. Because the number of homes for sale here is just stupid. In an "I'm amazed" sort of way.
If you are considering a move to West Seattle...
