You are receiving this because of your relationship with Washington Association of REALTORS. May 27, 2014 Stay Connected!
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1 You are receiving this because of your relationship with Washington Association of REALTORS. May 27, 2014 Stay Connected! Hotline Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to or call (800) Please have your NRDS number ready when you call or the Hotline with your question. The Legal Hotline lawyer does not represent Washington Association of REALTORS members or their clients and customers. Research this topic and thousands of others online. Question: Unlisted seller has 7 potential buyers and asked broker to represent seller in negotiating with these buyers, selecting a buyer and writing the purchase agreement. Seller does not want to list her home. Seller will pay broker a percentage of the sale as compensation. Can broker do that?
2 Answer: Yes. Broker can do that. Broker cannot write a purchase agreement for seller if that is the only service broker is providing to seller because if the only thing broker is doing for seller is writing a purchase agreement, then broker is practicing law when broker writes that agreement. Real estate brokers have a limited license to practice law. The limitations on a real estate broker's license to practice law were defined in Cultum v. Heritage House REALTORS, 103 Wash.2d 623 (1985). This case provided, in part, that a real estate broker is permitted to complete standardized real estate forms but the completion of the forms cannot be done outside of transactions actually handled by broker and then without charge for the simple service of completing forms. If the only service broker is bringing to the transaction is the service of writing the agreement, then broker is not authorized to write the agreement and broker is not allowed to charge for writing the agreement. Broker is practicing law to do so and must refer the parties to legal counsel instead of writing the agreement. However, in this case, broker will have to assist seller in valuing seller's property so that negotiations can be meaningful, broker will have to negotiate with multiple buyers, broker will help seller assess the significance of different terms offered by different buyers and ultimately, broker will assist seller in documenting the transaction. Broker is licensed to assist seller with those services and may charge the compensation agreed between seller and firm. Based on the facts presented, that seller wants to select from one of these seven buyers and seller does not want to market the property, broker could use the brand new statewide form, Form 47 (Seller Representation Agreement), to document the agreement between seller and broker's firm. Broker should, nevertheless, advise seller, in writing, that seller may attract even more buyers and create an even more aggressive bidding environment if seller marketed the property on the MLS. Ultimately, the seller controls this issue, however, and broker should adhere to seller's instructions. For a printer friendly version of this week's Legal Hotline Q & A, click here. REALTOR Career Help We have scanned and selected interesting tips & tricks articles from a variety of industry publications so you don't have to. Always check with your broker/owner to see if these practices fit within your company policies. Real Estate Pro's Guide to Pinterest Are you really taking advantage of this social media site and the wealth of traffic it can drive to your website? Charlie Allred writes How to Capitalize on Pinterest and follows that up with a satisfying guide for the real estate pro...
3 Six Important Skills for Real Estate Marketing This great blog post refers to what they consider the six most important "Mad Men Skills" you need to rock your marketing The ability to embrace change. 2. Ability to spot opportunities and adapt strategies quickly. 3. Being passionate, hungry to learn and curious... Top Stories When Lenders Think Globally (Wall Street Journal) Buyers from Asia for U.S. luxury homes are no longer just the super-rich paying all-cash; lenders say the shift has boosted demand for jumbo financing...read more. New Home Sales Rose 6.4% in April (New York Times) WASHINGTON - New-home sales in the United States recovered in April after slumping the previous two months. But Americans are still buying new homes at a slower pace than they did a year ago...read more.
4 Mortgage National Averages 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM Average Rates 4.14% 3.25% 2.96% 2.43% Change (from prior week) -0.06% -0.04% -0.05% -----% Fees & Points Margin N/A N/A Regional Averages (West) 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM Average Rates 4.09% 3.21% 2.77% 2.13% Change (from prior week) -0.08% -0.05% -0.09% % Fees & Points Margin N/A N/A Source: Freddie Mac - Weekly mortgage rates released every Thursday. Freddie Mac's Primary Mortgage Market Survey Government Affairs What does "Net Neutrality" mean for real estate businesses? The FCC recently voted 3-2 to open for public debate new rules meant to guarantee an open Internet. What does this mean for your business here in Washington State? Some real estate professionals believe that measures are necessary "to prevent broadband providers (cable and telephone companies, primarily) from implementing possibly discriminatory practices that could negatively impact real estate professionals' use of the Internet to market their listings and services". The National Association of REALTORS issued a summary brief stating some possible examples of how this would impact your business. These examples include practices that could: (1) limit the public's access to real estate websites, (2) limit a real estate firm access to online service providers who may be in competition with network operators' own services, e.g. Internet phone services, or (3) charging certain websites more for the broadband speeds necessary to properly transmit or display audio or video content such as online property tour, podcast or phone services. Read the full NAR Issue Summary and the most recent update.
5 Patent Litigation Reform Dies in the Senate (REALTOR.org) On May 21, Senate Judiciary Chairman, Patrick Leahy (D-VT) announced that he would pull the patent litigation bill that has been under discussion for the past several months from the committee's agenda. This action effectively kills the legislation for this congressional session. Chairman Leahy stated "I have said all along that we needed broad bipartisan support to get a bill through the Senate. Education For your convenience, Washington REALTORS Education offers both online education and live classes, including webinars! To participate in a webinar, all you need is internet access and a phone. For more information, or to sign up for classes, visit Last chance to pre-register for the Legal Symposium... Featuring an awesome panel of leading Washington Real Estate Attorneys! Online registration closes at noon on Wednesday, May 28th. However, you can still register at the door. The Legal Symposium is a one-day education event for REALTORS and real estate licensees. The fullday will offer 7.5 clock hours of education you can apply to your annual license renewal. This event will take #C7C7C7 place at the Conference Center at SEATAC Airport on May 29, Upcoming Live Classes May 29 NETWORKING & REFERRAL SYSTEMS KENT 7.5 CE Instructor: MARGO WILLIS, GRI, PMN, SRES, CSP, e-pro Between networking and referrals are the relationships we build and manage. The goal of this course is to provide REALTORS with the information and tools they need to make the transition from a salesperson making cold calls to a professional, knowledgeable consultant with a steady stream of advocates and referrals...register JUNE 05 REALTOR SAFETY YAKIMA 3.0 CE Instructor: Pili Meyer, ABR, CRS, GRI, SRES, e-pro Knowledge. Awareness. Empowerment. These are the core components of REALTOR Safety and helping our members make it home safely at the end of every day. This 3.0 clock hour class helps remind us to identify the dangers we face every day, to be aware of our surroundings, and empower ourselves with precautions and preparations so that we can avoid risky situations. This class addresses components of: safety at the office, safety with your clients, and safety at home...register
6 JUNE 05 CURRENT ISSUES YAKIMA 4.0 CE Instructor: Pili Meyer, ABR, CRS, GRI, SRES, e-pro The Washington State Real Estate Commission and the Department of Licensing have adopted rules that require the completion of 4.0 clock hours of prescribed core curriculum. The 4.0 mandatory clock hours must be included in the 30 hours required for all active licensees topics include: legislative & legal updates, dual agency, sellers disclosure, Agency Law, referrals, signatory authority, and distressed properties...register More Upcoming Live Classes... June 6 Regional Professional Standards WENATCHEE 7.5 CE Instructor: Jan Ellingson, ABR, ABRM, CIPS, CRB, CRS, GREEN, GRI, SFR... June 10 Core & More PORT ANGELES 7.5 CE Instructor: Annie Fitzsimmons, Legal Hotline Lawyer June 10 Water Rights & Water Supply Issues for REALTORS TACOMA 3.5 CE Instructor: Bill Clarke June 12 Statewide Forms (Full-day) VANCOUVER 7.5 CE Instructor: Annie Fitzsimmons, Legal Hotline Lawyer June 12 Water Rights & Water Supply Issues for REALTORS MOSES LAKE 3.5 CE Instructor: Bill Clarke June 18 Water Rights & Water Supply Issues for REALTORS TRI CITY 3.5 CE Instructor: Bill Clarke June 24 Pinterest for REALTORS WEBINAR 3.5 CE Instructor: Terry Eccles-Pettet, ABR, CRB, GRI, epro, REEA member June Certified Negotiation Expert EVERETT 15 CE Instructor: Pili Meyer, ABR, CRS, GRI, SRES, e-pro For a complete list of classes, visit
7 Thank You, Sponsors! Best of the Legal Hotline Q & A Question What can an unlicensed person (like a receptionist at a real estate company) say to the public? Can she tell the public the price of a property? What can't she say? Click here for the ANSWER! Hotline Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org or call (800) Please have your NRDS number ready when you call or the Hotline with your question. The Legal Hotline lawyer does not represent Washington Association of REALTORS members or their clients and customers. Research this topic and thousands of others online. Member Resource Quick Links Please have your NRDS number and password ready when you access some of these links.
8 Stay Connected! Washington REALTORS PO Box 719, Olympia, WA Copyright All Rights Reserved. Forward this was sent to by ate Profile/ Address Instant removal with SafeUnsubscribe Privacy Policy. ashington REALTORS PO Box 719 Olympia WA 98507
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