NCCRE Blog

It seems that the nightmare of short sales may never end in the real estate business.  As if the transaction itself isn’t challenging enough, there are so many details and points of confusion associated with them.  The most common misconception I hear in the classroom is:  A Short Sale is not “under contract”. 

This is incorrect.  A Short Sale is nothing more than a contingency affecting a fully executed purchase contract.  When the Buyer and Seller have both signed the contract (and counterproposal if applicable), that creates MEC (mutual execution of the contract), so you are “under contract”.  The reason it’s confusing is because in the Short Sale Addendum, Section 8.3 (if applicable) gives either party the right to terminate the contract any time prior to lender acceptance, so it really doesn’t “feel like” you’re under contract.  However, an executed contract exists, so MEC has occurred. 

The lender’s approval of the terms of the contract is simply a contingency of the transaction.  The lender is NOT the seller or the decision maker; the owner of record is the seller and decision maker.  Brokers have a duty to present ANY AND ALL other offers that come in to the seller.  The lender telling you they don’t want to see any other offers does NOT negate your duty to present offers to the seller, and if the seller wants to accept an offer in back-up position, or even terminate contract #1 to accept #2, that is the seller’s decision, NOT the lender’s.

Remember that MLS rules are entirely separate from contract law.  MLS is club to which we subscribe, so we play by their rules.   But occasionally you may run into a situation when a club rule (such as reflecting a short sale listing as U/C in MLS) must be broken at the direction of your seller.  The MLS is not the law.

In all cases, please remember to advise the seller and/or buyer to consult their accountant and legal counsel.  If you are not savvy in the nightmarish world of short sales, PLEASE get help.  You can cause serious harm to both parties, especially the seller.

Education in Northern Colorado is heating up!  Coming up on February 24th, two classes never before offered in our area:

10:00-11:00     203K FHA Rehab Loans by Teri Evans, 1 hr CE, $15

     What rehab and remodel costs are allowed; whether you’re a listing broker with some inventory that needs fresh options, or you’re working with a Buyer who doesn’t have the funds to make improvements, the FHA 203K program may be just the answer.  Find out more about these benefits in this class!

**Lunch provided by Premier Mortgage Group**

12:00-4:00       Cracking the Credit Code by Chandra Hall, 4 hrs CE, $45

     Discover the effect of the economy on home ownership, how the credit scoring system works & how they impact purchasing power, what can be done to improve credit scores—an agents’ legal role in helping; FHA, VA & Conventional financing guidelines & rules; a systemized marketing plan for you.

Take both of these highly beneficial courses and save $5!  Sponsored by Fidelity National Title; please RSVP to Jennifer at 970-212-7711.  Classes held at Eheart Interior Solutions on the SE corner of I-25 & Hwy 34.  See more information at http://www.facebook.com/#!/FNTCNorthernColorado.

This month, Northern Colorado is particularly fortunate to welcome national speaker and real estate instructor Brad Hanks!  Brad is a guru in the realm of social media networking and will offer two highly beneficial courses:

February 17th, 9:00-12:00, Social Media Means Business, 3 hrs CE, $39

Facebook, Twitter, YouTube, LinkedIn and WordPress.  Five years ago these sites were unknown to most of us.  Today they’re how we keep current on our friends’ activities and stay connected.  But is there a way to use these sites as business drivers?

 Absolutely!  Social media is one of the most effective and inexpensive tools you can use to extend your brand and deliver your message.  It’s being used by companies and individuals to build a steady pipeline of prospects, converting those prospects into customers.  And it doesn’t matter what product or service is being offered – financial services, photography, construction equipment or widgets – these businesses are using social media with success.  In short, they’re making money with social media!

You can learn how to make the leap to social media success with this powerful session on using Facebook, LinkedIn, Twitter and a host of other social media tools in your business.  Learn how to attract customers with a Facebook fan page, connect with influencers and decision makers on LinkedIn, and use Twitter as your secret selling weapon.  Find out why you should have a YouTube channel and what benefit blogging can bring to building your brand. 

In this 3-hour session you’ll learn the power of these networks and see some of the tips and shortcuts that can save you time.  By the time you’re done with this program, you’ll be sold on the power of social media!

February 17th, 1:00-4:00, Hands-On LinkedIn Training, no CE, $39

Bring your laptop and implement tools and tricks for LinkedIn to maximize your business! LinkedIn is far more than just a site to post your resume; maximize the numerous benefits of this social media site by attending this course.

Save $$$ – only $60 total if you attend both classes!

For more information, please visit http://www.facebook.com/FNTCNorthernColorado. RSVP to Jennifer at 970-212-7711.

With the changing market over the past few years, Brokers have become more and more creative with their marketing.  The problem is that violations have arisen out of this “creative marketing”, which involves failure to disclose your true identity.  In particular, please remember the following:

• You must always include your Brokerage Firm name in all advertising, including print, web-based and social media sites.  If you are on a team, be particularly cautious in how you are representing your team to the public; it must be clear that your team is part of a bigger “team” – your Brokerage Firm.  There are rules regarding team names as well; for example, naming my team “Charity Realty” gives the impression that my team is its own organization.   Team names may not include words such as realty, company, inc., etc.
• Another trend is establishing side businesses, which is also a violation.  For example:  I’m a residential Broker at XYZ Real Estate.  Business has been a little slow, so I start picking up some extra income by “helping” my friends and clients rent out their homes.  This little side business (which is not allowed, you must share all of your activites with your Employing Broker) is going well, so I come up with a catchy name – “Charity Property Management”.  The problem is, my license can only hang in one place, and that’s at XYZ Real Estate.  I cannot establish a side business, as all company names must be registered with the Colorado Real Estate Commission.  
• Lastly, you must advertise your name as you are registered with the Colorado Real Estate Commission.  Again, since I am licensed as Charity Vermeer Cornelison, I cannot advertise my real estate business as “Charity Realty”, “Charity Property Management”, etc. unless I register those entities with the CREC.  Until I have taken that step, I may only advertise my real estate services under Charity Vermeer Cornelison.

Bottom line – be who you are.  Do not represent to the public in any of your advertising that you are something you’re not or that you’re more than you are.

As The Real Estate School launches an exciting education schedule in Northern Colorado, two rare opportunities top the list:

• February 24th, 12:00 – 4:00, 4 hours CE, Cracking the Credit Code by Chandra Hall

National speaker, GRI and continuing education instructor Chandra Hall unveils her newly authored course, “Cracking the Credit Code”.  In this four-hour class, Chandra will address the following:  the effect of the economy on home ownership; how the credit scoring system works; how credit scores impact purchasing power; what can be done to improve credit scores—and an agents’ legal role in helping to do so; FHA, VA & Conventional financing guidelines & rules; a systematized marketing plan for you.  Equip yourself to be better prepared to assist distressed and challenged home buyers in today’s market!

• May 5th and 6th, 9:00 – 4:00, 12 hours CE, Certified Negotiation Expert by Oliver Frascona

Today’s Buyers and Sellers are smarter than ever about the buying and selling process, and likewise they are expecting more skills from the Brokers they choose to engage.  Distinguish yourself from the rest by earning your Certified Negotiation Expert designation, a highly coveted and respected certification recognized nationally.  In this two-day course, you will learn persuasion principles, how the subconscious affects the decision making process, and countless practical negotiation tools. 

Both of these courses will be held at Eheart Interior Solutions, located on the southeast corner of I-25 and Highway 34 near Loveland. For more information and to rsvp, please contact Jennifer Shepherd at 970-212-7711.

This past Friday night, December 31st, was filled with joy and jubilation as people around the world celebrated the New Year holiday.  The introduction of 2011 marks a time of renewed hopes and expectations…and a new Colorado Real Estate Commission Mandatory Update course.  Brokers across the state of Colorado have eagerly anticipated this moment – out with the old, and in with the new!

For those licensees who waited to take the 2010 CREC Mandatory Update until the last quarter of 2010, you may have found some of the material to not be much of an “update” anymore.  Keep in mind that the CREC Mandatory Updates are typically drafted in the fourth quarter of any given year, then it goes through an approval process and instructors are trained prior to the class being released January 1st.  Each CREC Mandatory Update is in effect for one full calendar year (this has been the case starting in 2009).  So if you wait to take the class until the later part of the year, you will be hearing older news. 

It’s also important to note that CREC Mandatory Updates don’t solely focus on new announcements and information; they also include areas that have been red flags and sources of consumer complaints.  Such material is relevant any time of the year.  With all of this in mind, it may be time to escape from the old way of thinking – take the CREC Mandatory Update in the 4th quarter – and consider taking the class earlier in the year.  Take note of when your renewal date is and when you need this required course, and then look for earlier opportunities to attend the class.

As always, you will find the education schedule for Northern Colorado right here, so save this site and mark your calendars for upcoming opportunities!  We look forward to seeing you in the classroom!

As we approach the dropping of the ball to close 2010 and introduce 2011, don’t forget to renew your Errors and Omissions Insurance.  Unlike our real estate Broker licenses, which now renew on our anniversary dates, E&O Insurance renews every calendar year.  The Colorado Real Estate Commission is auditing ALL licensees EVERY February; in 2009 and 2010 alike, thousands of people forgot to renew their E&O Insurance, and therefore were placed inactive when discovered by CREC. 

If you should happen to forget your renewal, don’t despair.  The consequences aren’t that terrible.  When you’re placed inactive by CREC, it’s a simple form and a nominal fee – plus proof of current E&O Insurance – to reactivate.   Perhaps a bigger concern is the lapse in your policy; carriers vary in their policies as far as whether or not a lapse or break in your coverage affects your benefits.  For example, if you let your policy lapse this year and have 30 days of no coverage before CREC catches you in February, your insurance company may not cover an offense that pops up from your past.  Be sure to inquire with your insurance carrier if you have concerns.  And of course it goes without saying – NEVER forge your E&O Insurance certificate!  The consequences are terrible, yet CREC has found offenders for the past two years.

The end of 2010 also reminds us to prepare for an abundance of growth and opportunity in 2011!  Be sure to make education one of your goals; check out the list of upcoming classes from The Real Estate School in Northern Colorado.  Have a safe and Happy New Year!

Just hear those sleigh bells jingling, and the seconds ticking, as 2010 draws to an end!  The Real Estate School is ready for the new year in Northern Colorado! No better time than now to start planning your education for 2011, so mark your calendars for the following courses being held at Eheart Interior Solutions:

• January 14th, 9:00-12:00, 2011 New Contracts, 3 hrs CE, $30, instructed by Charity Vermeer Cornelison
• January 14th, 1:00-5:00, 2011 CREC Mandatory Update, 4 hrs CE, $40, instructed by Charity Vermeer Cornelison
• February 4th, 9:00-12:00, Creative Financing I, 3 hrs CE, $35, instructed by Oliver Frascona
• February 4th, 1:00-4:00, Creative Financing II, 3 hrs CE, $35, instructed by Oliver Frascona (save $10 by taking BOTH)
• February 23rd, 10:00-11:00, FHA 203K Rehab Loans, 1 hr CE, $15, instructed by Teri Evans
• February 23rd, 12:00-4:00, Cracking the Credit Code, 4 hrs CE, instructed by Chandra Hall (save $5 by taking BOTH)
• March 10th, 9:00-12:00, Short Sales, Foreclosures & Working with Lenders, 3 hrs CE, $35, instructed by Oliver Frascona
• March 10th, 1:00-4:00, Plan B: Bankruptcy, 3 hrs CE, $35, instructed by Oliver Frascona (save $10 by taking BOTH)
• April 8th, 8:30-12:30, 2011 CREC Update, 4 hrs CE, $45, instructed by Oliver Frascona
• April 8th, 1:30-4:30, 7 Deadly Snares of Real Estate, 3 hrs CE, $35, instructed by Oliver Frascona (save $10 by taking BOTH)
• April 22nd, 9:00-12:00, Agency vs. Transaction Brokerage, 3 hrs CE, $35, instructed by Oliver Frascona
• April 22nd, 1:00-4:00, Listing Contract Issues, 3 hrs CE, $35, instructed by Oliver Frascona (save $10 by taking BOTH)
• May 5 & 6, 9:00-4:00, Certified Negotiation Expert Designation, 12 hrs CE, $250, instructed by Oliver Frascona

All of the above dates include breakfast, lunch and snacks, sponsored by Fidelity National Title and Premier Mortgage Group.  Questions and RSVP’s may be directed to Jennifer Shepherd at 970.212.7711.

More classes coming in 2011, so stay tuned!

‘Tis the season for real estate Brokers to take classes!  The past few months have been very busy for me as an instructor, and as usual, I find myself confronted with questions and concerns in the classroom.  A common inquiry has come from newer licensees, those licensed within the past year:  “Do I need to take a CREC Mandatory Update class in my first year of licensure?”  The answer is YES.

Years ago, before the Colorado Real Estate Commission transitioned from the calendar year expirations/renewals to our current system of anniversary date expirations/renewals, when an applicant achieved his or her Broker Associate license, he or she expired at the end of that first calendar year.  No education was required in that shortened period of time, including a CREC Update.  After that initial renewal on January 1st, the Broker’s three-year renewal cycle began, as did the requirement for 24 hours of CE credits.  It appears that some pre-licensing schools are still teaching under this old system and are telling students they do not need to take a CREC Mandatory Update in the first year of licensure, but this is not true.

In 2005, the Colorado Real Estate Commission began the transition to the expirations/renewals on our anniversary deadlines, and with that change came different requirements for new licensees.   Now, from the initial date of issue of a Broker’s license, the Broker has three years to complete 24 hours of continuing education credits, of which 12 must be the CREC Mandatory Updates.  The clock starts ticking from day one; there is no longer a “free grace period” as there was years ago. 

So the moral of this story: new licensees need to take three different CREC Mandatory Updates within three years from their license date.  More than likely, that will require attending a CREC Mandatory Update within that first year.

As we approach January 1st and the unveiling of the five new CREC Purchase Contracts, it’s a good time to quickly review some potential red flags in the soon-to-be Section 3: Dates and Deadlines.

Remember that by inserting “N/A” or “Deleted” into any blank in Section 3 not only negates the deadline, but also entire corresponding Section (see the Section number in the Reference column).  So make sure you really want to DELETE the whole paragraph.  For example, in Section 7.2 there is a box that may be checked to request Exceptions; if you’ve checked this box, you may naturally then assume that the appropriate Deadline in Section 3, Item 3, the Exceptions Request Deadline, does not apply – because it’s already completed, and therefore insert N/A.  However, “N/A” would then delete Section 7.2, which is not your intent.  A better alternative would be writing “Completed” or “See Section 7.2” on Item 3 under Dates and Deadlines, as it clearly communicates your intent. 

The opposite is also true – when a deadline is inserted on one of the blanks in Section 3, the corresponding paragraph does apply.  For example, when preparing an offer for a Buyer, you may presume that a Seller’s Property Disclosure will be provided (assuming you haven’t been able to acquire one in advance), so you put a deadline in Item 10 regarding Section 10.1.  The Seller accepts the Contract as written, but a few days later when you contact the Listing Broker to obtain the Seller’s Property Disclosure, you are informed that the Seller actually never completed one (for whatever reason).  At this point, many Brokers shrug off the situation and pass the message along to the Buyer, but in actuality, the Buyer could very well demand a Seller’s Property Disclosure form just as indicated in Section 10.1.  In such a case, the Listing Broker may want to advise the Seller to counter or amend the Contract to delete Item 10 under Section 3.

Moral of the story:  pay attention to Dates and Deadlines in Section 3. In today’s market, consumers are savvier and less tolerant of sloppy work and lack of attention to detail, so protect yourself by accurately reflecting the Buyers’ and/or Sellers’ intent under the Dates and Deadlines.