(Association Calendar of Events) 6 th MLXchange Training Association Office Report Writer am Basic I 1:00 pm
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1 April 2, 2009 Vol Is. #25 com It's A Date (Association Calendar of Events) For a complete listing of meetings and events go to the Members Only page on and click on Calendar Upcoming Events To Watch For April 6 th MLXchange Training Association Office Report Writer am Basic I 1:00 pm A semi-monthly publication for REALTOR and Affiliate Members of the Eastern Connecticut Association of REALTORS R E ECAR L T O R News May be cancelled due to lack of participation ASSOCIATION OFFICE CLOSED In observance of Good Friday APRIL 10 th GRI - 3 SERIES Comfort Suites, Norwich April 13 th, 15 th, 20 th, & 22 nd 14 th New Member Orientation 8:30 am Association Office 23 rd ECAR/Board of Directors Meeting 9:00 am Association Office 27 th Continuing Education Course 3 CE Credits Association Office Ethics 9:00 am TENTATIVE
2 Hot Topic (Information from C.A.R.) Hotsheet Legal Tip Stimulus Bill Includes Real Estate Purchase Tax Credit The new economic stimulus bill signed into law contains a tax credit equal to 10% of the purchase price to a maximum of $8,000 for new first-time homebuyers who purchase between January 1, 2009 and November 30, This new credit replaces the previous $7,500 tax credit for purchases made after January 1, A first-time homebuyer is one who has not owned a principal residence within the three years prior to the purchase. The home must be closed between January 1, 2009 and November 30, The new tax credit is a refundable credit. In other words, the tax credit will be taken against the taxpayer s obligation, and if the taxpayer payer has an insufficient obligation to soak up the entire tax credit, the balance will be refunded to the taxpayer payer. For example, a taxpayer has a tax obligation of $7,500 and $10,000 in wage withholding so the taxpayer payer would receive a $2,500 income tax refund. Figuring the credit, the refund would balloon to $10,500. As another example, the taxpayer payer has a tax obligation of $11,000 and wage withholding of $8,000 leaving a tax obligation of $3,000 to be paid with the return. Figuring the tax credit in this case, the taxpayer s $3,000 obligation would be wiped out and the taxpayer payer would receive an additional $5,000 as a tax refund. There is no word as yet as to how lenders will treat the tax credit in qualifying buyers for loans. The amount of the tax credit begins to phase out once the taxpayer s adjusted gross income reaches $75,000 ($150,000 for a joint return) so not every eligible purchaser will receive the entire $8,000 credit. REALTORS should inform buyers of the possible availability of this tax credit. Buyers should then be referred to their tax advisors for further information. REALTORS should not enter into the business of providing tax advice to buyers concerning their home purchase. The Home Review Delivery has expanded its route. We are now in Moodus, Colchester, Dayville, Woodstock, Killingly and Thompson to name a few. Market Yourself and Your Listing for Only $20 In the Featured Properties Section. Your agent photo will be included with your listing Call for details
3 NEW MEMBERS APPROVED MARCH 19, 2009 Designated REALTORS Christopher Grant CG Real Estate Christopher Poulos Trinity Realty Gossip Sheet REALTORS Peter Poulos John Powers Trinity Realty PROVISIONAL* NEW MEMBERS *Applicants for REALTOR membership are granted provisional membership upon receipt of their application and payment of dues and fees. Applicants must complete new member orientation within 60 days of receipt of their application. REALTORS Kyle Campbell Jillian D Elia Georgia Holden David Kydd Daniel Liese Susan Maciejewski Linda Olisky Marc Sauer RE/MAX Champions Loomis Real Estate Randall, REALTORS (Mystic) Prudential Connecticut Realty (East Lyme) RE/MAX Professionals Loomis Real Estate Prudential Connecticut Realty (Seaport) RE/MAX Bell Park Realty (Plainfield) MEMBER UPDATES as of April 1, 2009 AGENCY TRANSFERS MemberNew Firm/OfficeFormer Firm/Office BetsyAnderson Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Robin Cavallaro ERA Realty Pros (Niantic) Diane Cellucci Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Cynthia Church-Read The Partner Network (Norwich) ERA Realty Pros (Niantic) Jaclyn Dodson Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Deborah Donlon Nautilus Realty The Partner Network (Niantic) Heather Edge Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Marc Jean Global Realty Network Intergrated Real Estate John Kelly Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Susan Klick William Raveis Real Estate (Mystic) Tammy Knowles Prudential Connecticut Realty (Norwich) Coldwell Banker Residential Brokerage (East Lyme) Georgia LaBonne Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Jan LeDoux Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Danielle Leroux Sellstate Leading Edge Realty RE/MAX Champions Nancy Linn ZipRealty IMT Real Estate Solutions Ellen Macha Browning & Browning Real Estate Prudential Connecticut Realty (Norwich) Bernard Marttila Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Sandra Marttila Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Chrisktopher Masten Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon) Noreen McGuire Realty World-Signature Properties The Partner Network (Norwich) Shane Pollock Prudential Connecticut Realty (South Woodstock) Loomis Real Estate Leann Souza Prudential Connecticut Realty (East Lyme) Prudential Connecticut Realty (Norwich) David Tucker Global Realty Network Intergrated Real Estate Kenneth Winton Randall, REALTORS (Waterford) Randall, REALTORS (Lisbon)
4 ASSOCIATION DELETES Kimberly Acevedo Karen Almodovar The Partner Network (Dayville) Nadine Amanfo Prudential Connecticut Realty (Norwich) Frederic Allyn, Jr. Carolyn Barnes Barnes Appraisal Jennifer Barbour Allan Agency Henry Beebe General Brokers Heidi-Jo Bradham DeNoia Real Estate Services Paul Brisson StoneHouse Real Estate Bruce Byberg Pine Knoll Real Estate David Cabrera ERA Property World Aris Capano Assist-2-Sell Stebbins Real Estate Lisa Chiarella Fidelity Realty Wayne Cosentino Speer Real Estate Jason Cronin Lisa Crowley Jane Davidson Switz Real Estate Associates Jennifer Davies The Partner Network (Dayville) Robin Delaney Robin Delaney Real Estate Lea DiMassa April Dora Kathryn DuPont Coldwell Banker Residential Brokerage (Stonington) Bruce Evans Lott Realty Robert Farley R. E. Farley & Associates Lillian Fedus Randall, REALTORS (Waterford) Linda Gomes Century 21 Allyn-Anchor (Westerly) Kristen Greene Martin Hart Samuel Stephens Real Estate Andrea Holt William Raveis Real Estate (Mystic) Cathy Hunter Randall, REALTORS (Lisbon) Robin Jarvis Randall, REALTORS (Lisbon) Jerome King William Raveis Real Estate (Mystic) Peter Lange Colliers Dow & Condon Lisa Lord Crystal Real Estate Co. Lincoln Mayo Lincoln Mayo Real Estate Judith McEwan IMT Real Estate Solutions Erika Medeiros Paul McNerney Coldwell Banker Residential Brokerage (Niantic) E. Peter Mitchell Martin Mitchell Kevin Monahan Nicholas Morizio Colliers Dow & Condon David Neary NearCo Properties Raymond Noyce Lakeside Realty Donald Oat William Pitt Sothebys International Real Estate William Parquette Tedeschi Real Estate Center Bladimir Pedroza Hadley Realty Group Stephanie Pious Colliers Down & Condon Peter Plante Lea Rand Martin Mitchell David Reyad Integrated Realty Craig Ruhs Julie Sanders Randall, REALTORS (Mystic) Teri Siskos Teri S. Siskos Susan Smithson Paul Sollenberger Daniel Stanavage Connecticut Commercial Realty Cinzia Tortora Bradford & Company, REALTORS Ginger Walker Prudential Connecticut Realty (Norwich) Robert Watrous American Classic Real Estate Corp. Gossip Sheet
5 Case Interpretations of the Code of Ethics or How would you vote? Article 13 REALTORS shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it. REALTOR s Obligation to Recommend Counsel When Needed Case Interpretation 13-3 by the NAR Professional Standards Committee REALTOR A was the listing broker for 25 acres of land owned by Client B. Shortly after REALTOR A s sign was placed upon the property, Customer C called REALTOR A and expressed interest in purchasing the property. After inspecting the property, Customer C made a full price offer. Surprised, Client B prepared a counter-offer at a higher price. REALTOR A realized that he might have a legal claim for commission from Client B, but not wishing to jeopardize their relationship, agreed that he would go back to Customer C and attempt to negotiate a higher price. Upon being informed of the property owner s change of mind and his requested higher price for the property, Customer C became upset and indicated his intent to consult his attorney to determine if he could force the seller to go through with the sales transaction at the price for which it had been originally offered. At this point REALTOR A advised Customer C that, in his opinion, litigation would be lengthy and expensive and that in the final analysis the sale could not be enforced. On the basis of REALTOR A s advice Customer C agreed to the higher price, and the transaction was consummated. Shortly after, Customer C complained to the Board of REALTORS that REALTOR A had provided bad advice to him. The Secretary referred the complaint to the Grievance Committee which determined that a hearing should be held and referred the matter back to the Secretary to arrange such a hearing. At the hearing, Customer C outlined his complaint to the Hearing Panel of the Professional Standards Committee. He indicated that he had intended to consult his attorney, however, because of the persuasive personality of REALTOR A and REALTOR A s assurance that legal action would be an exercise in futility, he had not done so. REALTOR A advised the panel that he had told Customer C that he could consult his attorney, but that, in his opinion, it would be a waste of time. He defended what he had told Customer C stating that it was only his opinion, not intended as a conclusive statement of law, and, in fact, was a correct statement under the law of the state. The panel concluded that REALTOR A, in pointing out the fact that legal action was likely to be time consuming and expensive, was stating a practical circumstance which Customer C should consider and was proper. The panel further concluded that the expression of an opinion as to the probable outcome of the case was not an unauthorized practice of law within the meaning of Article 13. However, the panel noted that a REALTOR is obligated to recommend that legal counsel be obtained when the interest of any party to the transaction requires it. In this case, REALTOR A was aware that the interest of Customer C required a legal opinion as to whether Customer C could compel Client B to convey title to the property and did not intend his personal opinion to represent a statement of law upon which Customer C could rely. Accordingly, REALTOR A was obligated to affirmatively recommend that Customer C consult his attorney to definitively establish the legal rights in question. If you were a member of the hearing panel, how would you vote? Having failed to make such a recommendation, REALTOR A was in violation of Article 13.
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