Real Estate Picnic

Chat Help: Undernet #RealEstate [number] Regular Ops are 1. SpinTail 2. Insert nickname. Other Undernet channels do include #Politics #Political #CNN #Psychology #Undernet #Christmas #RebelYell #Abuse-Survivors #Constitution #Newbies Be polite, courteous and participate #RealEstate is only a help channel. What’s your #RealEstate question into the channel and I will maybe pull up a desk. Thank you! Hope we enjoy!

My 180 (insert your hours) certified hours in the classroom time in Real Estate

Menu: A. Solve Desks B. My PITI Marketing Team C. Sales Review Library D. Underwrite Jobs and your Summary E. Allocated & Monthly Spending Plan For Buying F. Purchase Loans/Banking LTV (loan to value) G. My Documents to Execute the Deed H. Chapters I. Violations Memo & Procure Memo

A. Solve Desks: 1. Dearborn 2. Barron’s 3. 882 E’s 4. Readers Digest 5. Sales Review 6. Blue Ocean Experts 7. Operations 8. Consumer Report 9. Introduction to Business 10. Boilers 11. Estate Mathematics 12. Web Sites

B. My PITI Marketing Team: 1. My Principal Charge = (Insert my desk rent charge) (Insert fiduciary duty on agent[s] Commission Principal %) 2. Interest Charge = (Insert Bank Company) (insert Interest %) 3. Tax Charge = (Insert Property tax Bill %) (Insert Your Ad Valorem Tax Levy Annually Report) 4. Insurance Charge = (Insert Insurance Company) (Insert the insurance Cover Form) (Insert insurance %)

C. Sales Review Library: 1. The new science of sales force productivity 2. How to pitch a brilliant idea 3. What makes a good salesman 4. Low-pressure selling 5. Making the major sale 6. Major sales: who really does the buying? 7. Humanize your selling strategy 8. Manage the customer, not just the sales force 9. Interviews with CEO’s 10. Advances in Strategy 11. Appraising employee performance 12. Becoming a high performance 13. Brand management 14. Breakthrough leadership 15. Breakthrough thinking 16. Bringing your whole self to work 17. Building personal and organizational resilience 18. Business value of IT 19. Change 20. Compensation 21. Corporate ethics 22. Corporate governance 23. Corporate responsibility 24. Corporate strategy 25. Crisis management 26. Culture and change 27. Customer relationship management 28. Decision making 29. Developing leaders 30. Doing business in China 31. Effective communication 32. Emerging markets 33. Entrepreneurship 34. Finding and keeping the best people 35. Green business strategy 36. High-performance organization 37. Innovation 38. The innovation enterprise 39. Knowledge management 40. Leadership 41. Leadership at the top 42. Leadership in a changing world 43. Leading in turbulent times 44. leading through change 45. Making smarter decisions 46. Managing diversity 47. Managing health care 48. Managing high-tech industries 49. Managing people 50. Managing projects 51. Managing uncertainty 52. Managing the value chain 53. managing your career 54. Managing yourself 55. Marketing 56. Measuring corporate performance 57. Mergers and acquisitions 58. Mind of the leader 58. Motivating people 59. Negotiation and conflict resolution 60. Nonprofits 61. Organizational learning 62. The persuasive leader 63. Pricing 64. profiting from green business 65. Retailing and merchandising 66. Strategic alliances 67. Strategic renewal 68. Strategic sales management 69. Strategies for growth 70. Supply-chain management 71. Talent management 72. Teams that succeed 73. Tests of a leader 74. Top-line growth 75. Turnarounds 76. Women in business 77. Work and life balance 78. Ideas with impact 79. Diversity in workplace 80. Macroeconomic health of the U.S. consumer 81. Steady wage gains and nonstore sales

D. Underwrite (Insert My Real Estate License #)

E. Allocated & Monthly Spending Plan for Buying: 1. Monthly Take Home Pay 2. Charity 3. Saving 4. Housing 5. Utilities 6. Food 7. Clothing 8. Transportation 9. Medical/Health 10. Insurance 11. Personal 12. Recreation 13. Debts. Form Submitted to Licensee.

F. Purchase loans/Banking LTV (loan to value): 1. Conventional loans must meet FNMA guidelines *18/36 ratios * Less then 80% LV 2. Insured conventional loans * 28/36% ratios or 33/38% * now- more and more lenders are using 40% of gross for PITII & LTV PMI = Private mortgage insurance 3. FHA loans = FHA loans are FHA-Insured loans. Does not loan money (insures the loan) section 203(b) requirements * Up front Insurance premiums/1.5% * May be financed * Plus .5% monthly * FHA approved appraisal * FHA escape clause (must be in the purchase agreement) * Also have ARMS * maximum loan amount by area *may be repaid * assumption rule 4. VA-Guarantee Loans * eligibility * $60,000 maximum now * VA normally doesn’t loan money * Must have “certificate of eligibility” * May pre-paid anytime (without penalty) 5. GI-Bill 6. Tariffs * The money product has a price * Ratio coming soon 7. Marxism = Wholesale surplus value

G. My Documents to Execute the Deeds: 1. Agency Relationships in Real Estate Transactions 2. Exclusive Right to Sell listing Contract 3. Contract for Exclusive Right to Represent Buyer 4. Seller’s Property Disclosure statement 5. Well Disclosure Statement 6. Private Sewer System Disclosure 7. Private Sewer System and/or Well Disclosure Map 8. Addendum to Purchase Agreement Disclosure of Information on Lead-Based Paint and Leased-Based Paint Hazards 9. Purchase Agreement 10. Condominium/Townhouse/ Cooperative Addendum Common Interest Community (CIC) 11. Personal Property Agreement 12. Financing Addendum Conventional or Privately Insured Conventional Mortgage. 13. Financing Addendum Mortgage Discount Points 14. Inspection Contingency Addendum 15. Counteroffer Addendum 16. Contingency Addendum 17. Request For Removal of Contingency 18. Cancellation of Purchase Agreement

H. Chapters: 1. Introduction to Real Estate Business 2. Real Property and the Law 3. Concepts of Home Ownership 4. Agency 5. Real Estate Brokerage 6. Listing agreements and Buyers Representation 7. Interest in Real Estate 8. Forms of Real Estate Ownership 9. Legal Descriptions 10. Real Estate and other Liens 11. Real Estate Contracts 12. Transfer of Title 13. Title Records 14. Real Estate Financing Principles 15. Real Estate Financing Practice 16. Leases 17. Property management 18. Real Estate Appraisal 19. Land-use Controls and Property Development 20. Fair Housing and ethical Practices 21. Environmental Issues and Real Estate Transactions 22. Closing the Real Estate Transaction 23. Introduction to Real Estate Investment 24. Organization (Planning) of a Business 25. Selecting a form of Business Ownership 26. Business Ethics and Social Responsibility 27. Assessing Economic Conditions 28. Assessing Industry Conditions, Business Environment 29. Assessing Global Conditions 30. Managing Effectively 31. Organizational Structure 32. Improving Productivity and quality 33. Motivating Employees 34. Hiring, Training, and evaluating Employees 35. Creating and Pricing Products 36. Distribution Products 37. Promoting Products 38. Accounting and Financial Analysis 39. Financial Management 40. Expanding the Business 41. Using Information Technology 42. Managing Risk 43. Synthesis of Business Functions

I. Violations Memo & Procure Memo: Common Violations in Real Estate * In real estate, violations can occur at multiple levels — from professional ethics to laws and regulations. Here’s a breakdown of the main types and examples. * Real Estate Code of Ethics Violations * The National Association of Realtors (NAR) Code of Ethics sets 17-point standards for honesty, fairness, and professionalism. Common violations include 1. Misrepresentation or false advertising – e.g., claiming a home has “no HOA fees” when it has monthly assessments. 2. Exaggeration of property features or value – overstating condition, amenities, or market potential. 3. Failure to disclose material facts – omitting important property details (e.g., structural issues, legal liens). 4. Discrimination – refusing to work with or showing bias toward certain clients based on protected classes. 5. Confidentiality breaches – leaking client or buyer/seller information. 6. Dual agency conflicts – failing to disclose when acting for both buyer and seller. 7. Unfair competition – using unethical tactics to gain business. * Antitrust Violations * Under the Sherman Antitrust Act, real estate professionals can be charged for anti-competitive behavior * 1. Price fixing – agreeing with other agents/brokers to set commissions or prices above market. 2. Market allocation – dividing up territories or client bases among competitors. 3. Collusion – conspiring to limit competition or rig market conditions. * Building Code Violations * Properties must comply with local/state building codes. Violations can include * 1. Unpermitted construction or renovations. 2. Safety hazards (e.g., unsafe electrical work, fire risks). 3. Non-compliance with zoning or structural standards. * These can reduce marketability, affect financing, and lead to fines or legal action. * Other Legal Violations * Depending on jurisdiction, real estate professionals may also face * 1. Fraud or misrepresentation under state consumer protection laws. 2. Negligence in failing to meet disclosure or inspection obligations. 3. Tax or licensing violations (e.g., operating without proper credentials). * Consequences of Violations * 1. Fines and penalties (civil or criminal). 2. License suspension or revocation. 3. Loss of reputation and business. 4. Treble damages in some antitrust cases. 5. Legal liability for buyers, sellers, or lenders. * Bottom line: Real estate professionals must comply with both the NAR Code of Ethics and applicable laws. Violations can range from honest mistakes to serious legal offenses, with significant personal and professional consequences. Staying informed and following best practices is essential to avoid them. * Procuring cause is a legal and ethical principle used in real estate to decide which agent is entitled to a commission when multiple agents are involved in a transaction. It focuses on who caused the buyer to purchase the property by starting and maintaining an unbroken chain of events that ultimately led to the sale, rather than who simply wrote the offer or was present at closing. * How Procuring Cause Works * The process typically involves evaluating: 1. First introduction: Which agent first showed the property or sparked the buyer’s interest. 2. Continuous involvement: Whether the agent stayed engaged through follow-ups, negotiations, and guidance. 3. Effort and influence: The agent’s work must significantly contribute to the buyer’s decision to purchase. 4. Unbroken chain: Any substantial lapse in communication or abandonment of the buyer may break the chain, affecting the claim. * For example, if Agent A shows a home and begins working with the buyer, but the buyer later works with Agent B who writes the offer and closes the deal, a dispute may arise. Arbitration panels or local real estate boards often assess whether Agent A’s initial efforts directly led to the sale or if Agent B’s involvement constitutes the procuring cause. * Legal and Practical Considerations * Buyer-broker agreements: Exclusive agreements can clarify representation and help establish procuring cause, while nonexclusive agreements allow multiple agents to work with the buyer. * Documentation: Emails, contracts, and notes are critical in proving continuous involvement and influence. * Dispute resolution: If two agents claim the commission, arbitration through the local real estate board is common, and the buyer may be called as a witness. * Ethical obligations: Agents must avoid assisting a buyer in a way that violates an existing agreement with another agent, as this can lead to legal consequences * Key Takeaways * 1. Procuring cause is about action and involvement, not personal preference or who completes paperwork. 2. The agent who initiates and maintains the chain of events leading to a sale is typically awarded the commission. 3. Clear communication, proper agreements, and thorough documentation help prevent disputes and ensure fair compensation for agents. * Understanding procuring cause is essential for both agents and buyers to navigate real estate transactions fairly and avoid conflicts over commissions. * Know these violations: * Price fixing * Group Boycotting * Allocation of Customers * Tie-In-Agreements * How a broker’s compensation is usually determined * 1. Must be license * Written contract (not an employee) * Ready, Willing, Able * Fee’s must be negotiable * Must be in writing or (Statue of Frauds) * May still earn commission * 2. Seller changes mind. 3. Spouse Refuse’s to sign deed. 4. Title Defects. 5. Committed Fraud. 6. Unable to Deliver Possession. * Salespersons compensation plans 40% to 100% * employee * 1. IRS (Tax Forms) * Independent * 1. Compensation (90% under)

Created by SpinTail. My plan of work is I think it’s going to be on the Edina Reality wall