AAR Updates

Arizona REALTOR® Magazine - May 2010

• Power Lines Public Workshop
• AAR Survey Results on Data Sharing
• HB 2345: HOA For Sale, Lease and Open House Bill Signed Into Law
• Undisclosed Short Sale Payments May Be Illegal
  
• Two New Fraud Resources
  
• Lead-Based Paint Renovation/Repair Firms Must Be Certified
  
• Seller Representative Specialist (SRS) Course
  
• Recommendations for NAR Committee Work

Power Lines Public Workshop: REALTORS®, Please Attend!
Tuesday, May 11, 2010 | 9:00am
ACC Hearing Room | 1200 W. Washington | Phoenix 85007
Free parking is available in the north lots by the building and across the street.

In 2007, the Arizona Corporation Commission (ACC) eliminated more than 50 years of policy that provided initial line extensions up to 1,000 feet for new ratepayers.  Thanks in part to protests by REALTORS® and property owners, the ACC has agreed to reexamine the policy. Now is the time for REALTORS® and their clients to offer examples of how this decision has affected land values! View the event flyer. If you are not able to attend, please take a moment to email Commissioner Gary Pierce, who requested these workshops, with your comments: pierce-web@azcc.gov.

AAR Survey Results on Data Sharing

Under the leadership of John Foltz of Phoenix, AAR’s Statewide MLS Workgroup is studying the concept of making data more available to Arizona REALTORS®. The group needed to know how AAR members around Arizona currently use listing data and how they would like to use listing data, so AAR conducted a survey. You can find the results here http://www.aaronline.com/Documents/survey_results.pdf.

What did AAR learn? Most agents and brokers (79%) would like access to detailed listing data from outside their current market areas. They want to use this information to:

• Be better informed than the consumer
• Appear knowledgeable to current clients buying or selling out of the area
• Obtain knowledge of market and agents to refer buyers and sellers
  

Interestingly, only 7% said they would use the information to represent buyers and sellers in other areas. The workgroup’s next step is to list options and weigh them against concerns about loss of income to associations, loss of local control, agents doing business in areas they’re not familiar with, overall cost and this thing called “RPR.” If you have any questions or comments, please send them to surveycomments@aaronline.com.

HB 2345: HOA For Sale, Lease and Open House Bill Signed Into Law

On April 15, Governor Brewer signed HB 2345 into law. The bill stipulates that HOAs cannot prohibit or regulate temporary open house signs, a unit owner’s for sale sign, an owner agent’s for lease sign or open house hours for properties for sale or lease. This bill is another win for REALTORS® and private property rights!

Current statute states that HOAs cannot prohibit the indoor or outdoor display of a for sale sign and a sign rider by a unit owner on that owner’s property. However, statute stipulates that the for sale signs must conform to industry standard sign size, not to exceed 18” x 24” and industry standard sign rider size, not to exceed 6” x 24”. HB 2345 would also prohibit an HOA from regulating or disallowing temporary open house signs and a unit owner’s for sale sign that conform to the industry standard size.

View the bill here.

Undisclosed Short Sale Payments May Be Illegal

The following information comes from the California Association of REALTORS® (CAR) legal e-newsletter, Realegal. CAR has given AAR permission to share the information with our members here in Arizona:

Undisclosed payments in short sale transactions, especially those paid outside of escrow, may violate the law, including RESPA, laws against loan fraud, and licensing laws. Short sale agents have increasingly reported to C.A.R. about requests for agents and their clients to pay junior lienholders and others, oftentimes outside of escrow.

One common scenario is when a short sale seller’s senior lender authorizes a payment of $3,000, for example, to extinguish a junior lien, but the junior lender demands that the buyer pays an additional $9,000 outside of escrow. Not only would it be risky for a buyer to pay outside of escrow, but concealing this additional payment from a federally-insured senior lender may constitute loan fraud, which is a crime punishable by 30 years imprisonment plus a $1 million fine (18 U.S.C. section 1014). Furthermore, omitting from the HUD-1 Statement any charges paid at settlement by either a buyer or seller may violate the Real Estate Settlement Procedures Act (RESPA) (Appendix A to 24 C.F.R. Part 3500). Depending on the specific circumstances, carrying out these payment requests may also violate other laws and regulations, and an agent’s participation in the scheme may be subject to license revocation by the Department of Real Estate or other disciplinary action.

Agents and their clients are encouraged to file any complaints regarding fraudulent activities to the proper authorities, including the following agencies:

*Arizona Attorney General’s Office
Maricopa Co. 602-542-5025 | Pima Co. 520-628-6504 | Other Areas 800-352-8431 http://www.azag.gov/consumer/MailInInstructionsEng.html

Department of Housing and Urban Development (HUD)
HUD Office of Inspector General Hotline (GFI)
800-347-3735
http://www.hud.gov/offices/oig/hotline

Federal Bureau of Investigation (FBI)
202-324-3000
https://tips.fbi.gov

This information was reprinted with permission from CAR. (* The California Attorney General’s contact information was replaced with Arizona’s.) It was originally published in CAR’s Realegal email on March 16, 2010. All rights reserved.

NOTE: This item appeared on AAR’s blog, http://blog.aaronline.com, on April 8, 2010. Subscribe to the blog via email to receive the most up-to-date information when it is available.

Two New Fraud Resources

The U.S. Department of Housing and Urban Development, in partnership with the Loan Modification Scam Prevention Network, recently announced the launch of PreventLoanScams.org. Complaints filed online are added to a national complaint database and forwarded to the appropriate law enforcement agencies for review. (The network is a national coalition of public and private enterprises led by the Lawyers’ Committee for Civil Rights Under Law.)

In addition, President Obama’s Financial Fraud Enforcement Task Force has launched StopFraud.gov, where the American people can learn how to protect themselves from fraud and report it wherever—and however—it occurs. The task force’s mission is to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  

Lead-Based Paint Renovation/Repair Firms Must Be Certified

On April 22, 2010, the EPA rule requiring the use of lead-safe work practices became effective. Firms performing renovation, repair and painting projects that disturb lead-based paint in homes built before 1978 must be certified; individual renovators must be trained by an EPA-accredited training provider; and the firms and renovators must follow specific work practices to prevent lead contamination.

For more information, view the EPA Fact Sheet or watch NAR’s Lead Paint Renovation Rule Compliance Guide video.

Seller Representative Specialist (SRS) Course

July 15-16 | Arizona Association of REALTORS®
$275 before July 2| Register online
C/E: 3-contract law/3-agency/6-general

Taught by instructor Joeann Fossland, this program focuses on providing REALTORS® with the tools necessary to represent seller clients in a variety of formats. Particular attention is given to differing listing models, office policies, field issues, legal and code ramifications to representing sellers in today's changing environment. The session also explores manual and e-methods of procuring listings; securing the listing; staging the property and marketing venues; representing the seller client when converting consumer inquiries; co-broking with cooperating agents; protecting the interests of the client when fielding multiple offers; negotiating the offer and inspection phase issues; and following the pending transaction to closing. Learn more.

Recommendations for NAR Committee Work

Are you or someone you know interested in serving on an NAR committee in 2011? NAR’s online Committee Recommendation Database is now accepting recommendations! The deadline for submittals is Monday, May 24, 2010. You can recommend yourself or another suitable candidate for up to three committees at a time. When submitting a recommendation you are required to include relevant comments that highlight the candidate's skills and qualifications for the position. We encourage you to seek recommendations from colleagues with whom you have worked closely, in particular members of state and national leadership.

Learn more about the process. Questions? Contact Erin Campo, NAR’s Senior Administrator – Committee & Governance Programs, at 312-329-8457 or ecampo@realtors.org.

 
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