2018/19 current issues in washington residential …...current issues in washington residential real...

Current Issues in Washington Residential Real Estate Course Curriculum

Updated: September 2017

CURRENT ISSUES IN WASHINGTON RESIDENTIAL REAL ESTATE COURSE

CURRICULUM TABLE OF CONTENTS

Introduction ............................................................................................................................ 2

Recommended Learning Levels .............................................. Error! Bookmark not defined.

Recommended Hourly Breakdown ......................................................................................... 3

REQUIRED TOPIC AREAS AND EDUCATIONAL OJECTIVES .............................................. 4 Topic Area I: Legislative Update ............................................................................................. 4

Topic Area II: Legal Update ...................................................................................................12

Topic Area III: Business Practices Update.............................................................................21

Appendix I: Course Curriculum Resource Materials ..............................................................58



INTRODUCTION

Every two years, the Washington State Department of Licensing (DOL) and Washington State Real Estate Commission (Commission) release a set Current Issues (CORE) curricula specifically designed to provide a mandated three-hour legislative, legal, and business practices update for real estate professionals. For the 2018/19 CORE curricula, DOL and the Commission utilized the following data points and resources to guide eventual content determinations:

• An alignment review of RCW, WAC and other legislative mandates

• An assessment of real estate compliance data

• An identification of new key issues/trends and out-of-date content/topics based on stakeholder input via survey process conducted April-May, 2017

This 2018/19 edition of the Current Issues in Washington Residential Real Estate Course Curriculum was adopted by the Commission on September 28, 2017, to be implemented January 1, 2018. NOTE: With ever-evolving legislative, legal, and business practices in the real estate profession, this curriculum is subject to change. Such changes are often minor, rarely involving more than the modification of a sub-objective or an element of a sub-objective, and in most cases do not constitute re-adoption of the curriculum by the Commission. Should they occur, DOL will post an updated curriculum with such changes to its website at http://www.dol.wa.gov/business/realestate/curriculum.html. Education providers will be expected to show course alignment to such changes within thirty (30) days of the effective date of the changes.1

1 WAC 308-124H-850(1)

http://www.dol.wa.gov/business/realestate/curriculum.html



The educational objectives of this Residential CORE course is intended to provide a mandated three-hour legislative, legal, and business practices update for minimally competent real estate professionals. This course focuses on the following topic areas:

• Topic Area I: Legislative Update

• Topic Area II: Legal Update

• Topic Area III: Business Practices Update Topics in this curriculum are taught at the B-2 Comprehension level.

HOURLY BREAKDOWN

Required Clock Hours: Current Issues in Washington Residential Real Estate ......................... Total: 3 Clock Hours Topic Area I: Legislative Update ......................................................................................... 0.75 Topic Area II: Legal Update ................................................................................................. 0.75 Topic Area III: Business Practices Update ......................................................................... 1.50



TOPIC AREAS AND EDUCATIONAL OBJECTIVES TOPIC AREA I: LEGISLATIVE UPDATE - HOUR 1

National Legislative Issues

Marriage Equality & Real Estate

Sources: http://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=6203&context=law_lawreview

It has been a bit more than two years since Jim Obergefell, a former Coldwell Banker West

Shell agent in Cincinnati who has since moved to Washington, D.C., won his landmark Supreme

Court case, Obergefell v. Hodges, that made marriage equality the law of the land.

Those of us in the National Association of Gay & Lesbian Real Estate Professionals

(NAGLREP) were obviously thrilled that one of our own members led the fight that changed our

nation—but we also knew the decision would ultimately pay major dividends in the real estate

industry.

Think about it. Homeownership has always been predicated by the circle of life. Marriages, kids,

more kids, new jobs, promotions, divorces and so many other events trigger home-buying and -

selling.

Our LGBT Real Estate Report for 2017 showcases how the real estate industry is poised to

reap massive benefits from the 2015 Supreme Court decision.

Our report shows that 47 percent of NAGLREP members believe LGBT couples are buying

more homes than prior to the decision and 46 percent believe the entirety of the LGBT

community is more interested in homeownership.

And, as you might expect, marriage is leading to children. Nearly 60 percent of NAGLREP

members are reporting an increase of LGBTs with children, which may be why 29 percent

believe that more LGBTs will move out of urban centers.

http://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=6203&context=law_lawreview



Our study found that job change/relocation is the clear driver, followed by retirement, marriage,

engagement and children. Divorce and death of a spouse and partner are also on the list.

Here is another exciting development: The LGBT community desires larger and better homes.

Nearly 50 percent of our surveyed members report that, of their LGBT clients, move-up buyers

will dominate downsizers by an almost three-to-one margin in the near future.

And don’t forget: the LGBT community has almost $1 trillion in annual buying power, which is

more than the Asian-American population, according to Witeck Communications.

Embracing the LGBT community seems like a really smart business decision, and I also urge

you to consider the power of NAGLREP members. The report found that our members are

working heavily in the real estate sweet spot of Gen Xers (35-54), but, more importantly, our

members dwarf the productivity of what NAR reports for its members in experience, transaction

sides, sales volume and earnings. The comparisons are staggering:

HOW CAN GAY COUPLES MARRIAGE IMPACT ON REAL ESTATE SALES?

http://rismedia.com/wp-content/uploads/2017/08/NAGLREP_Report_2017.jpg



The much expected U.S. Supreme Court decision on country-wide marriage equality proclaimed that same-sex partners get the entitlement to end up in a lawfully binding marriage in all state.

Having the prospective invasion of same-sex property buyers to the real estate industry,

will a single thing change?

Just before the U.S. Supreme Court’s verdict, Gallup carried out a study to figure out the

quantity of married and the non-married same-sex couples. Analysts noticed that around

780,000

grownups in the U.S. were wedded to a mate of the comparable gender. Furthermore, 1.2

million grownups recognized as being in a devoted domestic relationship.

Simply because gay couples are actually in the position to marry in all state, it makes perfect

sense that the quantity of residential home purchases done by same-sex couples is going to

likewise increase. However, how can a growth in same-sex property buyers modify the

market, if in any way?



REAL ESTATE’S HOTTEST POTENTIAL CLIENTS

In accordance with the National Association of Realtors Property Buyer and Seller Generational Research, millennials (such within age 34) reflect 32% of every property buyers. Findings show

that the average age of which millennials acquired a residential property was 29 having the

average income drawing near $77,000 annually.

On the other hand, a survey carried out via The Williams Institute from UCLA pointed out

same-sex couples are inclined to have a greater gross income, much better education, and

much less limitations to investing in a residential property, just like the number of kids,

compared to their heterosexual equivalents.

The findings of this research advise gay couples acquiring real estate might sooner or later have upper hand buying potential rather than heterosexual couples.

BETTER EDUCATION



In accordance with The Williams Institute’s evaluation of Census info totally from the duration between the year 2005 and the year 2011, roughly 46% of persons in same-sex unions have university degrees. As compared to heterosexual couples, this really is considerably higher as

the group of people with university degrees in heterosexual unions is under 33%.

Obtaining a university degree usually generates bigger income, provides better buying potential, and enhances the likelihood of home buyers making a lot more knowledgeable real estate investing decision making.

STEEPER WAGES

Owing at least partially to higher education degrees in such a demographic, steeper wage is observed in residences with same-sex couples. Once both partners are employed, same-sex couples average roughly $94,000 per year.

On the flip side, heterosexual couples obtain about $8,000 less annually (or rather $86,000) whenever both partners are actively employed. Steeper income, regardless of whether because of higher education or other causes, is a plus shared by same-sex couples, specifically where

assets are involved.

Once yearly household income is strong, married home buyers have a lot more budget with

which to invest in real estate either for residential or investment reasons.

BROADER CLIENT SOURCE

Given that marriage equality was validated by the U.S. Supreme Court, most likely a lot more

same-sex couples will get engaged in a lawfully binding marriage and even go for shared investments, which include real estate and company ownership. However hardly any stats

have yet been launched to cater to this idea, this result is probable since legal limitations toward same-sex marriage are actually taken away.

In addition, The Williams Institute research discovered that females in same-sex unions reaped $8,000 more per year versus females in heterosexual unions. Even if this difference could be stemming from an absence of kids in same-sex families and thus much more flexibility to work

out of the house, it leads to considerably more female client source looking for housing



purchases.

RECOMMENDATION FOR REALTORS

Seeing that the range of same-sex marriages starts to rise in the United States, it’s necessary

for realtors to fully grasp the desires and demands of this market all through the acquisition operation. Along with sensible real estate expenditures, gay couples have the desire at real

estate acquisitions as just one chunk of the estate system puzzle. Realtors representing gay

couples now are competent to utilize conventional estate system tools to assist same-sex

couples plan out their coming future with complete security coming from the legal program, and

must think about the same aspects, like future kids, ideas to get other real estate, and preferred retirement age, to be able to figure out the ideal real estate available options.

Counseling and Incentives Sources: https://www.hud.gov/sites/documents/FY15CJ_HSNG_CNSL.PDF https://www.huduser.gov/portal/periodicals/em/spring16/highlight2.html https://www.fanniemae.com/content/fact_sheet/homeready-overview.pdf https://www.nfcc.org/wp-content/uploads/2014/03/HPF-White-Paper_Nov2013.pdf https://www.federalregister.gov/documents/2016/05/19/2016-11631/federal-housing-administration-fha-strengthening-the-home-equity-conversion-mortgage-program For many buyers, the process of purchasing a home can seem complicated and overwhelming. There are also buyers who feel ready to purchase a home but in reality may not be financially ready. Time spent in a homebuyer education class or with a HUD certified housing counselor can help a buyer understand the process and reach a position of being mortgage-ready. REALTORS® can refer the potential buyer to a HUD certified housing counselor who has the tools and expertise to help the client resolve financial, problems, determine actual household needs, and work on a budget and spending plan and an action plan that begins to prepare the buyer to meet the financial requirements of his or her new home. After working with a housing counselor, the client can return to the REALTOR® and begin looking in earnest for the right home.

What is the fundamental issue?

There are some who believe that housing counseling can help to ensure that first-time buyers are adequately prepared for homeownership. There has been movement toward creating

https://www.hud.gov/sites/documents/FY15CJ_HSNG_CNSL.PDF

https://www.huduser.gov/portal/periodicals/em/spring16/highlight2.html

https://www.fanniemae.com/content/fact_sheet/homeready-overview.pdf

https://www.nfcc.org/wp-content/uploads/2014/03/HPF-White-Paper_Nov2013.pdf

https://www.federalregister.gov/documents/2016/05/19/2016-11631/federal-housing-administration-fha-strengthening-the-home-equity-conversion-mortgage-program

https://www.federalregister.gov/documents/2016/05/19/2016-11631/federal-housing-administration-fha-strengthening-the-home-equity-conversion-mortgage-program



programs that incentivize borrowers with a reduction in mortgage insurance if they complete a series of housing counseling requirements.

I am a real estate professional. What does this mean for my business?

Homeownership education and counseling provides potential buyers with tools and information to help them make housing choices that are affordable and sustainable. Studies suggest that buyers who participate in education and counseling programs are less likely to experience mortgage delinquencies and foreclosures. In addition an educated buyer can help make the home buying process go more smoothly for the REALTOR® and the lender. Potential buyers may be more likely to opt-into counseling programs if they are offered a financial incentive to do so.

NAR Policy:

NAR does not have written policy related to housing counseling and incentives; however, NAR is supportive of voluntary home buyer education and counseling programs.

Legislative/Regulatory Status/Outlook

In May 2014, the U.S. Department of Housing & Urban Development (HUD) published a notice for Homeowners Armed with Knowledge (HAWK) for New Homebuyers. The HAWK for New Homebuyers pilot was designed to provide FHA insurance pricing incentives to first-time home buyers who participate in housing counseling and education that covered how to evaluate housing affordability and mortgage alternatives, to better manage their finances, and to understand the rights and responsibilities of homeownership. In December 2014, it was announced that efforts to fund the HAWK for New Homebuyers pilot program fell short as the 2015 Omnibus Appropriations Legislation explicitly prohibited implementation funding.

VA (Veterans Administration) Housing Since its establishment in 1944, the VA home loan guarantee program has helped millions of veterans purchase and maintain homes. NAR believes this program is a vital homeownership tool that provides veterans with a centralized, affordable, and accessible method of purchasing homes as a benefit for their service to our nation.

Small tweaks are needed to make this program accessible to all eligible veteran borrowers. In 2014 VA celebrated the 70th anniversary of the GI Bill and the creation of the VA home loan guarantee. NAR 2014 President Steve Brown celebrated this event with the VA at a special event during the Annual meeting.

NAR continues to work with VA to provide more flexibility in their policies. Currently, VA limits the fees which a veteran can pay. While this is designed to protect veteran purchasers, it places them at a disadvantage in multiple bid situations or when buying REOs. NAR is working to



ensure veterans are not paying unnecessary fees, while ensuring they are able to purchase the home they wish.

New VA guidance (November 2014) allowing veterans to negotiate the payment of wood destroying insect inspection fees in select southern and western states Although wood-destroying insect information is not generally required, when an inspection is necessary the State requires that it identify rot and conditions conducive to rot. For that reason, either the Washington State Pest Association form must be used or an appropriate attachment made to the NPMA - 33 form. On Nov. 7, 2014, the Department of Veterans Affairs issued new guidance that allows veterans to negotiate the payment of wood destroying insect inspection fees in select southern and western states. NAR and VA continue to work together to find ways to improve the loan process for Veterans. NAR has urged VA to allow buyers to negotiate the payment of certain fees, such as pest inspections. While pest inspection fee payments will not be allowed in all states, this policy change is a step in the right direction. NAR will continue to work with the VA on a larger rule affecting Veterans’ ability to negotiate fees and charges. VA Rehabilitation Loans Similar to VA construction loans, the VA does guarantee loans to buy and renovate existing property. The veteran completes the VA loan application and provides a contractor for VA approval. The plans and specifications for the improvements must be itemized along with an estimate for how long the construction period will last. VA approved home improvements include roof repairs, flooring repair, HVAC systems, bath and kitchen remodels. Similar to VA construction loans, VA rehabilitation lenders may be difficult to locate. In today’s market, many lenders have ceased approving VA construction loans of any kind. But there is a rehab loan that most lenders do offer. That’s the FHA 203k loan. It’s not a VA loan product, so there are down payment requirements as well as monthly mortgage insurance costs. However, for home buyers looking at fixer-uppers, the FHA 203k loan is a more widely-available option. New legislation has been proposed to introduce VA rehab loans similar to FHA 203k program FHA 203(k) loan is for buying a fixer-upper or remodeling such as modernizing the kitchen of a new home before move in. This proposed rule would establish placement and removal procedures for HUD's list of qualified consultants under the Section 203(k) Rehabilitation Loan Insurance program. The 203(k) Program is the Federal Housing Administration's (FHA's) primary program for the rehabilitation and repair of single family properties.



A 203(k) lender may select a qualified independent consultant, who is an expert in the field of home inspection, cost estimating, and construction, to perform various tasks required for the rehabilitation of the property. Presently, there are no regulatory procedures for placing a consultant on, nor for removing a poorly performing consultant from, the list. HUD believes that the establishment of these placement and removal procedures will better protect 203(k) borrowers and lenders and safeguard FHA insurance funds. Washington Legislative Issues

SB 5254 was passed to ensure adequacy of buildable lands and zoning in urban growth areas and providing funding for low-income housing and homelessness programs. This bill’s creation of a property tax exemption program for cities and counties is to preserve affordable housing for low-income households. PERIODIC UPDATE COMPLIANCE Counties and cities must be in compliance with the requirements of the GMA, including the periodic update requirements, to be eligible for grants and loans from certain state infrastructure programs. Growth Management Services maintains a list of local governments that are in compliance to help applicants and funding programs implement this requirement. When you take legislative action that meets your update requirement, make sure you send the adopting ordinance or legislation to Commerce, clearly identifying it as part of the update. This will allow Commerce to keep information about your city or county complete and up to date.

TOPIC AREA II: LEGAL UPDATE HOUR 2

Upon completion of this unit, the learner will know and be able to: Educational Objective 1: Common Complaints/Investigations/Findings Identify and describe common concepts relating to consumer-driven complaints/investigations/findings received/initiated/issued by DOL.2 Additionally, describe how and where to file a complaint against a licensee3, as well as how and where to view disciplinary actions against licensees.4 Contact DOL Real Estate Programs Regulatory & Enforcement Unit for info on how and where to file a complaint against a licensee5, as well as how and where to view disciplinary actions against licensees.

2 The following sub-objectives have been identified as consumer-driven complaints/investigations/findings

received/initiated/issued by DOL Real Estate Programs Regulatory & Enforcement Unit. 3 http://www.dol.wa.gov/business/realestate/complaint.html 4 http://www.dol.wa.gov/business/disciplinary/disciplinaryrealest.html 5 http://www.dol.wa.gov/business/realestate/complaint.html

http://www.dol.wa.gov/business/realestate/complaint.html

http://www.dol.wa.gov/business/disciplinary/disciplinaryrealest.html




http://www.dol.wa.gov/business/realestate/complaint.html http://www.dol.wa.gov/business/disciplinary/disciplinaryrealest.html Common Complaints:

» Unlicensed Activity » Misrepresentation » Deal Honestly and In Good Faith » Exercise Reasonable Care and Skill » First Applicant/ Conviction » Civil » Failure to Respond to the Department » Property Management Agreements » Advertising without Company Name » Trust Account Prop Mgmt., Sales, General. » Ethics » Conversion » Statements/ Negligence » Fraudulent/Dishonest Dealing » Incompetency

How to file a complaint Complete a Real Estate Programs Complaint. Attach all of the following: A detailed explanation of your complaint, including dates, other parties involved, and a summary of any efforts you’ve already made to resolve the problem. Describe events in the order they occurred. Copies of all documents that relate to the complaint. Submit the completed form and supporting documents: By fax: 360.586.0998 By mail: Real Estate and Real Estate Appraisers Department of Licensing PO Box 9021 Olympia WA 98507–9015 If the complaint appears to fall within the DOL authority, they may conduct an investigation. The investigator will act as an impartial, fact–finding third party. During the investigation, they aren’t representing you, us, or the service provider. The investigator may contact the person you filed your complaint against to ask for a response, and may give them a copy of your complaint. The length of time an investigation takes depends on current caseload and the complexity of the case. After all the facts have been gathered, DOL will evaluate the information. If the evidence doesn’t show a violation of the laws, they will dismiss the case.


http://www.dol.wa.gov/business/disciplinary/disciplinaryrealest.html



If a violation has occurred, they may recommend a disciplinary action, such as a reprimand, fine, or license suspension. The person who the complaint was filed against may request a hearing to dispute the decision. We’ll notify the person of the outcome of the complaint. Note: DOL decisions don’t constitute legal opinion and does not have the authority to recover funds, award damages, or make judicial determinations. To pursue these types of remedies, seek legal advice.

Timely presentation of all Written Offers Source: https://www.warealtor.org/resources/REmagazine/blog_post/remagazine-online/2012/10/01/it's-the-least-you-can-do

The broker must present ALL written offers, notices and communications in a timely manner. This means that the broker is given no discretion in this matter.

When written offers come in that are so low they are offensive or so poorly written they are indecipherable, it is NOT UP TO LISTING BROKER TO DETERMINE WHETHER THOSE OFFERS SHOULD BE PRESENTED. They must be presented.

When buyer and seller are in contract and seller proposes written modification of the agreement, it is never up to buyer’s broker to reject the modification. Even if broker knows that buyer cannot or will not agree to seller’s proposal, broker must present seller’s written proposal to buyer. When seller has already entered a purchase agreement and a competing offer is presented by a new buyer, listing broker must present it---even if broker anticipates a bad reaction by seller.

There are millions of different “what if” scenarios that can be imagined to test this theory. The answer will never change. Any written offer, notice or communication, to or from a party, no matter how ridiculous, inconsequential, offensive or irritating, must be presented timely. There are no exceptions.

The determination of timeliness, however, is not always so clear. “Timely” will be impacted by many forces, often outside the control of a broker. Seller may leave on vacation with instructions to hold all offers until seller’s return. Buyer may be hospitalized unexpectedly and unable to receive written communications until released.

There can be any number of factors that affect “timely” in a given transaction. However, factors within broker’s control that delay presentation are unacceptable. If the only relevant factors resulting in delayed presentation are factors under broker’s control, broker will have no excuse for failing to make timely presentation. If presentation of a written offer, notice or communication is delayed by forces beyond broker’s control, broker should include evidence or a notation of those factors within the transaction file. In defense of a complaint, broker may need to be able to prove that presentation was “timely” given the circumstances.



Notice that this provision relates to offers, notices and communications “to and from a party”. Unless a listing broker has agreed to serve as a short sale negotiator, listing broker is not obligated to make timely presentation of an offer to a short sale lender.

Finally, what is required of a broker in “presenting” an offer? There was a time when a broker met face to face with the other party or broker to present an offer. Industry standards no longer mandate that meeting. Rather, today’s norm is satisfied with electronic transmittal of the written offer, accompanied by telephonic notification that a written offer was sent electronically.

This industry “norm” does not limit a broker to presentation in this format. Broker can present an offer by any means that will successfully transmit the offer from broker to recipient, including the time tested face to face delivery. At a minimum, however, if delivery is made by email or fax, delivery should be accompanied by a phone call. Remember also, email delivery may be limited by the terms of the purchase agreement.

In transactional work, earnest money is, without doubt, the biggest factor for consideration in analyzing this duty. When buyer gives broker an earnest money check with the expectation that it will be deposited timely, it must be deposited timely. Moreover, earnest money concerns not only the buyer but the seller as well. Broker’s duty to account for all money and property received from or on behalf of either party includes a duty from buyer’s broker to seller for proper handling of the earnest money. The Department of Licensing has been extremely rigorous in enforcement of this duty. Brokers and firms should have a “belt and suspenders” approach to ensuring proper deposit of earnest money and timely notifications of any failure regarding earnest money. In the property management arena, safe handling of tenant deposits and owner funds is every bit as critical as safekeeping of earnest money in transactional work. Trust account review is a critical and intense element of any Licensing Department audit. Firms and property managers should have their own check and balance system for insuring that deposits are where they should be when they should be there and that a well-documented accounting system provides clear evidence of compliance. For any other property or funds held by broker, equal care must be employed in safekeeping and accounting for proper delivery.

Case Studies

Seller disclosure versus caveat emptor (Douglas v. Visser, 295 P.3d 800 – Wash: Court of Appeals, 1st Div. 2013) It is more important than ever for buyers to be advised to conduct thorough inspections prior to purchasing. Agency Law duty for brokers to disclose material facts actually known by broker; no duty to investigate; reasonable reliance When prospective homebuyers discover evidence of a defect, the buyers must beware. They are on notice of the defect and have a duty to make further inquiries. Source: http://www.ac-lawyers.com/news/2013/03/19/buyer-beware-still-applies-to-residential-

http://www.ac-lawyers.com/news/2013/03/19/buyer-beware-still-applies-to-residential-home-purchases



home-purchases While this rule of law may appear reasonable the actual application of may not be so fair. In Douglas v. Visser, the homebuyer’s pre-purchase inspection identified a small area of rot and decay near the roof line and caulking that suggested a previous roof leak in that area, and an area of rotted sill plate beneath the home. The inspection report stated that this did not pose a structural threat, but should be repaired if the condition degraded. The buyer did not discuss this report with the seller and proceeded with closing the sale without inquiring further. However, after moving into the home, the buyer noticed a damp smell and a constant presence of potato bugs around the perimeter of the house and in the bathroom. This lead to further investigation, including removal of a ceiling tile, which resulted in insulation and water to come down when the ceiling tile was removed. A mold abatement company could not guarantee removal of all mold, opining that the house presented pristine mold growing conditions. Further investigation revealed extensive structural damage: the rim joists and sill plate had 50-70% wet rot and pest damage. This investigation further revealed that siding had been installed by the seller and that the extent of damage to the rim joists and sill plate could not have occurred since installation of the siding. The inspector concluded that whoever installed the siding would have known of the structurally damaged framing and that insulation had been installed in the crawl space stud bays to conceal the rotted framing. Based on this evidence of concealment, the buyer sued the seller for breach of contract, fraudulent concealment, negligent representation, violation of Washington’s Consumer Protection Act, and a claim that the seller, a real estate agent, violated statutory duties applicable to real estate agents. During discovery, one of the contractors that had performed work for the seller testified that wood was too soft to install screws in certain areas and that he had advised the seller to rip out plywood and inspect joists underneath. Instead, the seller instructed the contractor to find a way to attach screws into the soft wood and to cover up rotted wood underneath the bellyband of the exterior of the house. Based on this evidence of concealment, the trial court ruled in the buyer’s favor and awarded significant damages. However, the Division I Court of Appeals reversed, holding that because the buyer should have been on notice of potential defects due to its pre-closing inspection report that revealed the evidence of rot near the roof line and the area of rotted sill plate, the buyer had a duty to make further inquiry: “The [seller’s] efforts in concealing the defects of the house they were selling are reprehensible, even more so because [seller] is a licensed real estate agent. Nonetheless, the law retains a duty on a buyer to beware, to inspect, and to question. We caution that the [buyer] did not have a duty to perform exhaustive invasive inspection, or endlessly assail the [seller] with further questions. They merely had to make further inquiries after discovering rot or at trial show that further inquiry would have been fruitless. The only evidence of when the [buyer] first learned of rot in the house is the report issued after [inspector] conducted his pre-purchase inspection.

http://www.ac-lawyers.com/news/2013/03/19/buyer-beware-still-applies-to-residential-home-purchases



Despite that discovery, on top of the [ seller’s] previous evasive and incomplete answers and the [seller’s] on-going failure to provide their own pre-purchase inspection report, either of which should have caused concern and further inquiry, there is no evidence that the [buyer] made any inquiries whatsoever after the inspection. They obtained no finding from the trial court that further inquiry would have been fruitless. Under Dalarna, the [buyer’s] failure means they were not entitled to maintain these claims.” This resulted in the Court of Appeals dismissing all of the buyer’s claims. Adding insult to injury, because the transaction was seller financed and the buyer had stopped paying on the promissory note upon discovery of the defects, the Court of Appeals concluded that the buyer had defaulted on the promissory note, was obligated to pay default interest of 18%, and owed the seller reasonable attorneys’ fees based on a prevailing party fee provision in the purchase and sale agreement. It is likely these fees were significant based on the full trial at the trial court level and subsequent appeal.

Scope of Broker’s License (Cultum v. Heritage House Realtors, 694 P. 2d 630 - Wash: Supreme Court 1985) There is a bright line between the practice of brokerage services (as defined in RCW 18.85) and the practice of law, i.e., drafting a contract between two third parties When completing earnest money agreements brokers are held to the standard of care of a practicing attorney

DIANE CULTUM, Respondent, v.

HERITAGE HOUSE REALTORS, INC., Appellant.

Cultum contacted Heritage in response to an advertisement in the Seattle Times and was put in touch with Yvonne Ramey, a real estate agent for Heritage. After viewing several homes, Ramey showed Cultum the home of Arthur and Paula Smith. Cultum decided to make an offer on the Smith home but was concerned that there might be something wrong with the house. Cultum therefore told Ramey that she wanted to have the house inspected and be able to withdraw her offer on the basis of that inspection.Ramey prepared a real estate purchase and sale agreement (earnest money agreement) setting forth Cultum's offer to purchase the Smith home. This agreement and all other subsequent agreements contained an attorney fee clause which provided that

[i]n the event that either the Buyer, Seller, or Agent, shall institute suit to enforce any rights hereunder, the successful party shall be entitled to court costs and a reasonable attorney's fee.

All agreements were prepared on standardized forms drafted by attorneys. Cultum's offer and a subsequent offer were both rejected. About a month later, Ramey and Cultum resubmitted the earnest money agreement with an addendum which raised the purchase price.

Cultum later discovered that the agreement did not contain a structural inspection contingency clause and asked Ramey to prepare a second addendum. This addendum provided: "This offer



is contingent on a Satisfactory Structural Inspection, To be completed by Aug 20, 1980." Both addenda were on forms drafted by an attorney. Ramey merely inserted the desired modifications in a blank space. Ramey did not select the form since her employer used a single standard form.

The Smiths accepted this last offer and Heritage deposited Cultum's $3,000 earnest money into a noninterest-bearing trust account. Thereafter, Cultum received a report on the house from Northwest Inspection Engineers. The report noted missing siding and caulking on exterior portions of the home, damage to the siding along one corner of the north entry door, deterioration on the roof which probably caused some leakage, inadequate support on a sheet of plywood on the roof of the new addition causing some softness in the roof, rusted gutters, soft mortar on the chimney, and evidence of minor roof leakage along the living room entry. The inspector found no major problems in the plumbing, heating or electrical systems.

Cultum found the report unsatisfactory and demanded return of her earnest money. Ramey immediately prepared a rescission agreement but the Smiths refused to sign it. The Smiths claimed there was nothing structurally wrong with the house and Cultum was acting in bad faith. The Smiths argued that the language of the inspection contingency meant that the report had to be truly unsatisfactory and reveal real structural defects based upon an objective standard. They therefore threatened to sue Heritage if it returned Cultum's money.

Heritage initially gave Cultum three options:

It could continue to hold the money in a noninterest-bearing account pending an agreement between Cultum and the Smiths;

it could pay the money into a registry of the court; or,

it could refund the money to Cultum in exchange for her agreement to indemnify Heritage in an action brought by the Smiths. Subsequently, Heritage also offered to place the money in an interest-bearing account pending resolution of the dispute.

Because these options were each substantially less than Cultum had believed the agreement would provide her, she refused to accept them and hired an attorney. Six months later Heritage refunded Cultum's earnest money.

Cultum then filed this action against Heritage seeking damages for loss of the use of her money during the period Heritage held it. She also requested a permanent injunction restraining Heritage from engaging in the unauthorized practice of law. In addition, she sought attorney fees under the Consumer Protection Act, RCW 19.86.090.

The holding of the trial court was not surprising. In a series of recent cases this court has broadly defined the practice of law to include the selection and completion of form legal documents, or the drafting of such documents, including deeds, mortgages, deeds of trust, promissory notes and agreements modifying these documents.



The trial court's extension of these holdings to completion of form earnest money agreements by real estate salespersons is logical since such agreements fix the legal rights and duties of both buyers and sellers of residential real estate. It therefore fits within the broad definition of the practice of law as we have previously defined it.

Nevertheless, without retreating from our rulings in those three recent cases, we think there are sound and practical reasons why some activities which fall within the broad definition of "the practice of law" should not be unauthorized simply because they are done by lay persons.

Although the completion of form earnest money agreements might be commonly understood as the practice of law, we believe it is in the public interest to permit licensed real estate brokers or licensed salespersons to complete such lawyer prepared standard form agreements provided that, in doing so, they comply with the standard of care demanded of an attorney.

For a long time suppression of the practice of law by non-lawyers has been proclaimed to be in the public interest, a necessary protection against incompetence, divided loyalties, and other evils. It is now clear, however, as several other courts have concluded, that there are other important interests involved. See Conway-Bogue Realty Inv. Co. v. Denver Bar Ass'n, 135 Colo. 398, 312 P.2d 998 (1957). These interests include:

1. The ready availability of legal services.

2. Using the full range of services that other professions and businesses can provide.

3. Limiting costs.

4. Public convenience.

5. Allowing licensed brokers and salespersons to participate in an activity in which they have special training and expertise.

6. The interest of brokers and salespersons in drafting form earnest money agreements which are incidental and necessary to the main business of brokers and salespersons.

Because the selection and filling in of standard simple forms by brokers and salespersons is an incidental service, it normally must be rendered before such individuals can receive their commissions. Clearly the advantages, if any, to be derived by enjoining brokers and salespersons from completing earnest money agreements are outweighed by the fact that such conveyances are part of the everyday business of the realtor and necessary to the effective completion of such business.

In a few instances earnest money agreements may be complicated and one or both parties may realize the need for a lawyer to prepare the contract rather than use a standardized form. In fact, if a broker or salesperson believes there may be complicated legal issues involved, he or she should persuade the parties to seek legal advice. More often, however, these transactions are simple enough so that standardized forms will suffice and the parties will wish to avoid further delay or expense by using them. .

https://scholar.google.com/scholar_case?case=10528856543150934916&q=cultum+v.+heritage+house&hl=en&as_sdt=6,48&as_vis=1




It should be emphasized that the holding in this case is limited in scope. Our decision provides that a real estate broker or salesperson is permitted to complete simple printed standardized real estate forms, which forms must be approved by a lawyer, it being understood that these forms shall not be used for other than simple real estate transactions which arise in the usual course of the broker's business and that such forms will be used only in connection with real estate transactions actually handled by such broker or salesperson as a broker or salesperson and then without charge for the simple service of completing the forms.

The trial court awarded Cultum damages based on a finding that the contingency clause as written by Ramey violated the standard of care of a practicing attorney. Whether or not the contingency clause as written by Ramey meets an attorney's standard of care, Ramey is nonetheless liable because the problems in this case were caused by Ramey's failure to follow her client's explicit instructions.

This dispute arose because Cultum and the Smiths disagreed on whether the defects noted in the inspection report were sufficient enough to cause the real estate contract to fail. Cultum had wanted her offer conditioned on her subjective approval of the inspection. Ramey, contrary to Cultum's wishes, failed to include a subjective right in the contingency clause. If Ramey had complied with Cultum's request, the dispute with the Smiths could not have arisen and Cultum's earnest money would have been refunded to her immediately.

It is the duty of an agent to obey all reasonable instructions and directions given by the principal and to adhere faithfully to them in all cases where they ought properly to be applied and in which they can be obeyed by the exercise of reasonable and diligent care.

An attorney is liable for all losses caused by his or her failure to follow the explicit instructions of the client. When a broker undertakes to practice law and prepares a contract at variance with the client's instructions, he or she is liable for negligence

Therefore, because Ramey was practicing law and failed to comply with Cultum's wishes she is liable for all damages proximately caused by her negligence. It is irrelevant whether the language in the contingency clause may have somehow been improper.

The law recognizes that requiring lawyer preparation of every earnest money agreement is not a practicable alternative to the broker/salesperson preparation

But, the ultimate protection to the public is the requirement that the broker/salesperson be held to the standard of care of a practicing lawyer.

The competent broker/salesperson should recognize when special circumstances require more skilled and knowledgeable drafting. If that decision is made at their peril, hopefully it will be made carefully, keeping in mind the fiduciary relationship and the requirements of the licensing statute.

The Washington Consumer Protection Act



The Washington Consumer Protection Act (CPA) is liberally construed so as to protect the public and foster fair and honest competition. Under the CPA real estate sales clearly constitute “trade” or “commerce.” Deceptive acts are unlawful under the CPA. BUSINESS PRACTICES UPDATE HOUR 3

Organizational Structures, Roles, & Responsibilities

“Teams”

The Licensing Law requires brokers and firms to advertise in the firm’s name as licensed and requires that the firm’s licensed name be included in all advertising in a clear and conspicuous manner. There is hardly a firm in the state that is fully compliant with these advertising requirements. Too often, the entire firm name, as licensed, is not used in advertising and if it is, it is too small to be considered “clear and conspicuous.” Many firms misunderstand that using a franchise name, in the absence of a licensed firm name, is not sufficient.

Moreover, teams and individual brokers sometimes advertise in the complete absence of their firm’s licensed name. A broker or team may advertise without reference to the firm’s licensed name ONLY if the broker or team advertises under an assumed name license. An assumed name license can only be procured by a firm and is then owned by the firm.

DELEGATION Agreements:

The Licensing Law mandates that all delegations of authority be in writing from designated broker to a managing broker. While designated brokers are able to delegate most duties to a managing broker, the delegation of authority is not complete unless and until it is put into writing, signed by both the designated broker and the managing broker. Oral delegations of authority do not successfully delegate authority.

Moreover, many designated brokers are under the impression that a delegation of authority is also a delegation of responsibility. That is not true. When a designated broker delegates authority to a managing broker, the managing broker is “authorized” to take action that is otherwise required, pursuant to the Licensing Law, of the designated broker.

However, if managing broker fails to act or fails to act responsibly to fulfill the delegated act, then designated broker remains responsible, based on the Licensing Law, to perform the required act.

For example, if a designated broker properly delegates authority to a team leader to supervise the brokerage services of a team member who is licensed less than two years, and team leader fails to exercise proper supervision, designated broker remains responsible to the Department of Licensing for that failure of oversight.

Supervision of Licensed Assistants and Unlicensed Assistants

Permitted and Unlawful Acts for Unlicensed Personal Assistants



Personal Assistants play an increasing role in today’s real estate business, and can be an invaluable asset when it comes to handling non-sales related tasks for licensees.

A Real Estate or Personal Assistant is simply a person who assists either the licensee in a real estate transaction. They would be the equivalent of a loan processor in the mortgage field. Their duties are extremely limited, if they are unlicensed, and the scope of their position is regulated by State Guidelines.

Assistants can either be licensed or unlicensed, and may work for a managing broker, managing broker or a broker. If they are unlicensed the duties of a personal assistant are limited to secretarial/office type of performances. Licensed assistants can directly assist in all aspects of the real estate transaction.

Responsibility for Assistants

Ultimately the managing broker is responsible for activities performed by personal assistants; however, if the assistant works for a broker, both the managing broker and broker share the legal responsibility. The broker has a duty to protect the managing broker from illegal activities and should therefore be familiar with the duties a personal assistant can perform with or without a real estate license.

When we talk about licensed assistants it essentially refers to the assistant holding an active broker's license. Washington has two types of licenses for real estate professionals: Managing Broker and Broker.

A managing broker who serves as a real estate firm's managing broker has his license registered with the Department of Licensing as a Managing broker and his license is so endorsed by the DOL. There is no such thing as a personal assistant license. If the assistant is performing any duties of a licensee (negotiating deals, showing property) they must hold a managing broker's or broker's license.

Activities an Unlicensed Personal Assistant May Perform

In September of 1999 the Washington Real Estate Commission adopted guidelines for the duties an unlicensed assistant may and may not perform.

Unlicensed assistants who work under the direct instructions and supervision of a licensee may perform the following tasks and duties:

1. May be a greeter at open houses/model units and distribute pre-printed promotional literature and provide security.

2. May act as a courier in delivering documents, picking up keys, or similar services. 3. Perform clerical duties such as typing, answering the telephone, forwarding calls, and

scheduling appointments for licensees. 4. Submit forms and changes to multiple listing services. Obtain status reports on loan

progress and credit reports, etc.



5. Follow-up on loan commitments after a contract has been negotiated; and pick up and

deliver loan documents. 6. Obtain public information from sources like government offices, utility companies, title

companies, etc. 7. Write and place advertising. 8. Make keys, install lock boxes, and place/remove signs on property. 9. Gather information for comparative market analysis. 10. Transport people to properties and/or around areas of interest but may not show, answer

questions, or interpret information regarding property, price or condition. 11. Perform accounting and collection functions such as collecting rents, recording and

depositing earnest moneys, security deposits, rental funds and/or computing commission checks.

12. Order or perform items of repair and/or maintenance. 13. Provide information pertaining to the characteristics of real estate or a business

opportunity and the terms or the conditions of a transaction only if that information is prepared in writing and approved in advance by a licensee

Unlicensed assistants shall not:

1. Engage in any conduct which is "used, designed or structured" to procure prospects. 2. Show properties, answer questions, or interpret information regarding property, price, or

condition. 3. Interpret information regarding listings, titles, financing, contracts, closings or other

information relating to a transaction. 4. Conduct telemarketing or telephone canvassing to schedule appointments in order to

seek clients. 5. Fill in legal forms or negotiate price and/or terms. 6. Perform any act which requires a real estate license under RCW 18.85 or the

administrative rules in 308-124 WAC.

The Licensee’s Status as Independent Contractor Nearly all compensation for real estate services are paid to agents as independent contractors. This means that they pay their own taxes, social security and are hired to perform a particular job using their own judgment in the manner of completion of the job. The Real Estate Firm can control agents to achieve results but this supervision is limited to assuring that the agent’s actions are in accordance with legal and ethical standards rather than a sales quota. However, even if an agent is considered an independent contractor for federal income tax purposes, the agent may be treated as an employee under other laws. The Real Estate Firm may require minimum training, scheduled floor time, attendance at sales meetings, and required continuing education courses. They also may enforce the agent to comply with policy, procedure manual and real estate laws, rules and regulations.

http://search.leg.wa.gov/wslrcw/RCW%20%2018%20%20TITLE/RCW%20%2018%20.%2085%20%20CHAPTER/RCW%20%2018%20.%2085%20%20chapter.htm

http://www.dol.wa.gov/wacs/wac-real.htm



Under the state license law, the designated broker is responsible for supervising the broker’s activities, and may be held liable for the broker’s conduct. The Difference Between An Independent Contractor And An Employee To determine if an agent is an employee or an independent contractor depends on the control the broker has over the agent’s daily activities. If the broker wants to closely control and direct specific activities, the agent may be considered an employee. Usually the real estate agent fits into the category of the independent contractor. Licensees are virtually always independent contractors in relationship to the client. However, in the relationship between a Real Estate Firm and an agent, the issue of whether the agent is an employee or independent contractor could depend on many factors. It is extremely rare for a Real Estate Firm to pay real estate agents a salary. Nearly all real estate agents work on commission, and under the general direction of their Real Estate Firm created by a formal or informal agreement. The state law does not require the contract to be written; however, to create independent contractor status for federal income tax purposes, the Real Estate Firm and agent must enter into a written contract. Typically, the seller is responsible for paying the commission to the listing Real Estate Firm. The listing Real Estate Firm then pays the listing agent and the selling Real Estate Firm. The selling Real Estate Firm pays the selling agent. Commissions are often split four ways. Agents are almost always paid on the basis of results rather than an hourly wage. It is uncommon for Real Estate Firms to control the agent’s daily work schedule. They usually are more interested in the end results of the agent’s prospecting efforts, listings, sales, closings, and customer service. IRS provides that a real estate agent will be considered an independent contractor for federal income tax purposes when three conditions are met: 1. The individual is a licensed real estate agent 2. Substantially all of the agent’s compensation is based on commission rather than hours worked 3. The services are performed under a written contract providing that the individual will not be treated as an employee for federal tax purposes. This means that the Real Estate Firm will not withhold income taxes, pay social security or worker compensation premiums, or contribute to the agent’s health, retirement or pension plans, although agents can arrange their own retirement plan. The agent would be responsible for any business expenses, license fees, membership fees, and may deduct any business expenses that are not reimbursed by the Real Estate Firms



Broker Personal Safety

According to the National Association of Realtors, less than half of the country’s Realtor’s have

a personal safety plan or procedure in place. With workplace injuries and fatalities on the rise

(including but not limited to assaults and traffic accidents), real estate professionals are being

encouraged now more than ever to implement Personal Safety Procedures.

Procedures might include:

• meeting a potential client in a public place rather than an empty residence

• requiring a client to check in at the Realtor’s office prior to a first meeting (providing one

is not alone)

• notifying associates, family, or friends of one’s whereabouts or location

• and checking in regularly with home-office.

If this task seems daunting, there are now quite a few affordable smart phone apps that: track

one’s geographic location; allow for emergency alerts; autodial 911; or notification of friends and

family of your location.

Although overall violence involving real estate professionals is on the decline, injuries due to

falling equipment; unsafe buildings, and traffic incidents are not. Brokers must consider the

overall big picture to implement personal safety procedures, and teach their associates to do the

same in order to limit their liability, minimize injuries and eliminate fatalities.

DOL Online Renewal and License Maintenance Features The DOL will soon no longer accept paper renewals. You must have your continuing education complete at renewal. ONTINUING EDUCATION REQUIREMENTS When you renew, you must certify online that you have completed all the required continuing education:

1. DOL will soon no longer accept paper renewals

Counter services closed as of January 1, 2016

You can still mail applications and forms or use online services

http://www.dol.wa.gov/onlinesvcs.html



2. Ensuring continuing education is complete at renewal

CONTINUING EDUCATION REQUIREMENTS

When you renew, you must certify online that you have completed all the required continuing

education:

Active renewals

Renewal type Required continuing education

Real estate brokers

First active renewal

(WAC 308–124A–785)

• At least 90 hours, including:

o 30-hour Advanced Practices Course

o 30-hour Real Estate Law Course

o 3-hour Core Course

o At least 27 hours other approved continuing education

• The hours must be started after the date of first licensure

Real estate brokers

Subsequent active

renewals

(WAC 308–124A–790)




• At least 15 hours must be completed within 24 months of your renewal

date

• You may also use up to 15 hours of unused continuing education

completed within 48 months of your renewal date

Managing brokers

All active renewals

(WAC 308–124A–790)




• At least 15 hours must be completed within 24 months of your renewal

date

• You may also use up to 15 hours of unused continuing education

completed within 48 months of your renewal date

• The hours must be started after the date of first licensure as a managing

broker

Inactive renewals

Renewal type Required continuing education

Brokers or

managing brokers

• No continuing education required to renew an inactive license.

http://apps.leg.wa.gov/wac/default.aspx?cite=308-124A-785





• To activate your license, you may have to meet the education requirements for

an active license. Call 360.664.6500 to find out if you need to complete

education before applying to activate your license.

Finger printing through MorphoTrust’s IdentoGO

If you are in Washington, you will use MorphoTrust’s IdentoGO process to take and submit your

fingerprints electronically at one of their many Washington locations

UPDATE YOUR LICENSE ONLINE

Update the name on your license

1. Login to your account.

2. At your account dashboard, click Update on the row for your name.

3. Follow the on-screen instructions to update your name.

4. Your name update will take effect immediately, and you'll receive a license with your new

name within 2-3 weeks.

ELECTRONIC FINGERPRINTING Note: If you are not in Washington, you will not be able to submit electronic fingerprints. Call or email the program that licenses your profession for fingerprint card submission instructions. If you are in Washington, you will use MorphoTrust’s IdentoGO process to take and submit your fingerprints electronically at one of their many Washington locations.

Introductory Letters The Federal and Washington State protected classes and local Fair Housing protected classes and their implications as they relate to “love letters.” Liabilities surrounding introductory letters or “love letters” from a buyer or a broker to the seller that includes references to protected classes. Disciplinary actions which may be taken by DOL if Fair Housing Laws are violated under Washington State License Law in relation to “love letters”

An introductory letter from a seller or a broker to the buyer should never include any

references to “protected classes”, because it potentially places the brokers and seller at risk for

violating federal, state, and local Fair Housing and Discrimination laws.

http://www.l1enrollment.com/locations/?st=wa

http://www.dol.wa.gov/services/professionlogin



According to Washington State laws it is illegal to make, print, circulate, post, or mail, or cause

to be so made or published a statement, advertisement, or sign, or to use a form of application

for a real estate transaction, or to make a record or inquiry in connection with a prospective

real estate transaction, which indicates, directly or indirectly, an intent to make a limitation,

specification, or discrimination with respect to protected classes.

If any Fair Housing Laws are violated under Washington State License Law, the Director of

Department of Licensing may take disciplinary action against any person engaged in the

business or acting in the capacity of a real estate broker, managing broker, designated broker,

or real estate firm, regardless of whether the transaction was for the person's own account or

in a capacity as broker, managing broker, designated broker, or real estate firm, and may

impose one or any combination of the following sanctions,

1. Revocation of the license for an interval of time; 2. Suspension of the license for a fixed or indefinite term; 3. Restriction or limitation of the practice; 4. Satisfactory completion of a specific program of remedial education or

treatment;

5. Monitoring of the practice in a manner directed by the disciplinary authority; 6. Censure or reprimand 7. Compliance with conditions of probation for a designated period of time;

Payment of a fine for each violation found by the disciplinary authority, not to exceed five

thousand dollars per violation. The disciplinary authority must consider aggravating or

mitigating circumstances in assessing any fine.

ALTERNATIVE STRATEGIES TO THE LETTER

Massachusetts-based Rich Rosa, co-founder of Buyers Brokers Only, has some cautionary

words after a situation that occurred a couple of years ago with one of his brokers.

A seller used the buyer’s personal, emotional letter as a reason not to budge on negotiating; his

client knew how much the buyers wanted the house.



Rosa sympathizes with buyers who want to feel they are doing everything humanly possible to

stand out in multiple offer situations.

But, he says: “I’m not convinced that there are a lot of sellers making decisions based on the

buyer’s letter. To me, personally, it seems a little naïve.”

Regardless of why they are selling their house, people usually have plans for the proceeds from

their house sale, Rosa added. They are moving out of town or buying something bigger, and

they want as much money as they can for the home.

Offering good terms is often more important, Rosa argues, such as being flexible on moving

dates, explaining how well the buyers are financed or providing a substantial down payment.

In some very competitive markets, buyers are waiving the mortgage contingency clause or even

the home inspection, Rosa said, something he does not advise.

A NOTE WRITTEN IN IGNORANCE COULD ENDANGER THE BID

Rosa’s very real concern is that if you don’t know much about the sellers, your buyer’s letter

may come off as antagonizing rather than endearing.

That’s why Manhattan buyer specialist, Ian Katz from the Ian K Katz Group, does his utmost to

find out about the sellers before breaking out the pen and paper.

Katz was working with a couple competing for a highly coveted two-bedroom co-op on the

Upper East Side.

“Included with my buyer couple’s offer was a personal letter to the sellers describing their

background, which we had learned during our property showings was very similar to the sellers’

background,” Katz said. “They were, like the sellers when they purchased eight years ago, a

newly married couple hoping to start a family and purchase their first home together.”



By good luck, the buyers happened to be good friends with another couple in the building, and

that couple knew the sellers well.

These two factors — the similar background and mutual friends mentioned by name — were

emphasized in the letter and helped the clients beat out a couple of slightly higher offers.

On another occasion, Katz was working with a couple who wanted to bid on a large three

bedroom estate condition co-op, and the seller had already received a strong offer from a

couple looking to use the property as a pied-a-terre.

“Unlike the first offering party, my clients were looking for a primary residence to renovate and

grow their family of four in, so it was for a much more pressing personal use with a nice family

story,” he said.

Katz and his buyers learned that the sellers were the children of a woman who had owned the

property for over 30 years and raised her family there. She had also renovated her kitchen to

test recipes in and wrote a cookbook.

Coincidentally Katz’s client was a passionate cook as well.

“The letter emphasized that the use of the apartment would greatly mirror the seller’s mother,

and that the kitchen would be in ‘good, active’ hands. This helped seal the deal with the sellers

and they ditched the first offer even though it was strong in other ways,” said the buyer’s

specialist.

In both cases, he said, understanding who the seller was, why they originally bought, why they

loved the apartment, why they were selling and how he and his clients could find commonality in

those aspects by incorporating good, personal information in letters, was crucial in securing the

two apartments over competing bids.

In other words, do your homework.



RAISING ETHICAL AND FAIR HOUSING CONCERNS

Realtor Keryn Giguere understands the pressure of low inventory in her Tacoma, Washington,

market but “questions the ethical validity” of love letters.

“Sure, for the heteronormative, cis pair with an adorable child and golden retriever this sounds

like a wonderful tactic. But what if you are a gay couple? A single woman? What if you are a

trans person trying to compete for the same house?” she wrote in a column last month.

Attorney Jon Goodman expressed related concerns at a National Association of Realtors

conference, specifically for buyers of protected classes who submit photos with their letters, and

how this strategy may cross into fair housing territory.

Agents might find safer grounds with letters that admire a home’s historical significance and

promise to keep up the landscaping — because the law doesn’t prohibit discrimination against

people who like history or gardening, Goodman explained.

WHAT ABOUT LETTERS TO THE BUYER?

It isn’t just buyer letters that can influence a real estate transaction; seller letters play a role, too.

Menlo Park-based Coldwell Banker Residential Brokerage agent Carrie Davis said she has had

success both with letters to sellers and letters to buyers.

For her listings, she has her clients write a letter to the prospective buyers. She includes it in the

disclosure packet and presents it alongside her property flyers at open houses.

“I have my sellers describe what they have enjoyed most about living in the home and

neighborhood and what features in the home they will miss. This has often been very well

received by buyers,” Davis said.

In addition to encouraging letters to the buyer, Davis adds her two cents, too.



“I write my own comments about the buyer in my offer summary,” she said. “I share a bit about

my buyer and why I think they are the ideal new owners of the property.”

Multiple Offer Scenarios

For buyers who are just entering the market or for those who have lost out on one or several properties, here are a few tips for putting your best foot forward and successfully navigating a multiple-offer situation.

Work With a Professional and Know the Market. Working with a real estate professional who is experienced and who is an expert in the market can be a crucial factor in determining whether you will be on the winning or losing end of a multiple offer situation.

Follow what is happening in the market. Are homes selling over asking price? Are seller’s underpricing to encourage multiple offers? What are similar properties selling for? An experienced agent, who you trust, can help to determine appropriate value based on the current market trends and can assist in negotiations and advice throughout the process.

Come In Strong Upfront. If you know, or suspect, that you’re entering a multiple-offer situation, you’ll want to come in strong from the very beginning. Some buyers try to come in low initially as a negotiation strategy; however, if the property is priced well and is expecting multiple bidders, you may not want to risk having the seller disregard your offer immediately for not being a serious contender.

Many agents suggest their sellers counter all of the offers in a multiple-offer situation, but that decision is ultimately up to the seller. They may choose to counter all offers, they may only counter a portion of the best offers, or they may decide to choose an offer after the initial submission with no counters at all.

One of the most important factors when a seller is considering multiple offers is their belief that the chosen buyer is serious about buying the property, and that they have the ability to meet the terms and close the sale. One of the best ways to do this is to come in strong right from the start.

Come In Clean and With as Few Contingencies as Possible. Make your offer as clean as possible and package everything to be submitted together in a coherent way. You don’t want the seller or their agent to have to chase you for paperwork, signatures or proof of funds.

Unless you’re paying all cash, it may be difficult or impossible to come in completely non-contingent, though there are ways to make your offer more appealing.

If you need financing, are you able to put more money down? Is it possible, or are you willing, to inspect the property prior to having an accepted offer so that you can come in with no physical

https://realestate.usnews.com/real-estate/articles/how-to-vet-real-estate-agents

https://realestate.usnews.com/real-estate/articles/whats-dragging-down-the-value-of-your-home



inspection contingencies? Talk with your agent about what works for you so that you can come in with your strongest possible offer.

Be Flexible With the Seller’s Needs

It sounds simple, but many agents and their buyers don’t take advantage of this simple step. Another easy way to make your offer stand out above the others is to have your agent find out what terms the seller is looking for and meet those needs.

For example: Do they want a long escrow period because their next home won’t be ready yet? Are they requesting a leaseback? Do they want to close quickly because they have already purchased and closed on a new property? Price and financing are not always the number one concern to a seller, so meeting their other terms is another way to make your offer more attractive.

Create a Personal Connection

Can a personal letter really work? The answer is yes, depending on the property, adding a personal touch to your offer can have an impact.

If the home you are writing on is a new construction or remodel being sold by a developer, a personal letter may not hold as much weight as the offer amount and terms. But for someone who is selling the home their family grew up in, there is often a strong emotional connection.

You definitely can’t deny the emotional involvement of residential real estate. A home is an incredibly personal purchase and for a seller, letting go can be a difficult process. A personal letter to the seller letting them know how much you love their home and how much you’ll enjoy it and will take care of it may be just the edge you need to overcome another prospective buyer.

Taking the time to write a thoughtful note also shows your dedication to the purchase and ensures the seller that you are a serious buyer.

Don’t Get Too Caught Up in the Bidding War

It’s easy to get caught up in the process when you're vying for a property with 10 other buyers. Try to stay level-headed and make sure that you are completely comfortable with your offer and terms.

Talk with your agent and be sure that you're not over-bidding just to win the property, only to feel you’ve overpaid once you enter escrow. You want to come in with your best offer possible, as long as it still complies with your needs and goals.

Get in Backup Position



You’ve done everything you can. You came up to your highest price and your best terms and you still don’t get an accepted offer.

If you're one of the top contenders, the seller may offer you a backup position. As first backup, you are first in line to get the property at your final offer terms if the first buyer falls out of escrow or does not perform. If you still want the home, backup position can be a great option.

Stay Positive

It can be incredibly frustrating to buy a home in a competitive marketplace. Inventory levels are low and prices are high. It’s normal for buyers to lose out on several homes before one sticks.

Sometimes it takes a few times around to fully understand the process and what is necessary to win in a multiple-offer situation. Working with a professional who you trust and respect can help the process feel less daunting.

Give yourself a break if things get too overwhelming. It can be emotionally draining to lose out on a home you had your heart set on. Give yourself time to reset before taking the plunge again. Stay positive, focus on the big picture, and keep your end goals in mind.

https://www.nar.realtor/multiple-offers#

LEGAL & ETHICAL CONSIDERATIONS

Typically, state governments establish laws addressing client confidentiality and disclosure, and may even denote the timeframe within which one must respond to an offer of purchase on real property. The REALTOR® Code of Ethics also establishes requirements on responding to offers and protecting the interests of clients:

• Article 1, Standard of Practice 1-6 denotes that, “REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.”

• Article 1, Standard of Practice 1-15 addresses REALTORS®’ obligation in multiple-offer situations: “REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.”

• Article 1, Standard of Practice 1-7 denotes that, “When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease.”



• Article 1, Standard of Practice 1-8 denotes that “REALTORS®, acting as agents or brokers of

buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing.”

• Article 1 denotes that “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.”

• Article 1, Standard of Practice 1-9 establishes requirements for ensuring client confidentiality and non-disclosure compliance.

PRICE ISN’T EVERYTHING: HOW TO HANDLE MULTIPLE OFFERS WHEN SELLING A HOUSE Live in a hot real estate market? If you’re selling your house, you might be lucky enough to receive more than one offer. If so, it’s a good idea to let potential buyers know. That way, they can tailor their offer with the competition in mind. You’ll then need to evaluate each offer fairly and consider advice from your real estate agent to choose the best one. Here are strategies to reach a decision:

Start with price but don’t end there

The offer with the highest price is going to get your attention, especially if it’s close to or above your asking price. But that doesn’t mean you should automatically hand over the keys to the highest bidder. Those offering the most money might be stretching their finances and run into trouble at the closing table. For example, they may not get approved for a big enough mortgage to buy the house at the agreed price.

So in addition to considering the dollar amount, you should review the terms of the entire contract with your real estate agent. For instance, consider how much cash the buyer is planning to include in the offer. More cash — and a correspondingly lower home loan — can ease a closing.

Compare contingencies

When buyers make an offer, they’ll often include a few conditions that, if not met, allow them to cancel the deal. These contingencies may include getting approved for a mortgage, having the home pass an inspection, and making sure the home appraises for a certain amount.

When you’re selling your home, contracts with fewer contingencies are better, because there will be fewer chances for the buyer to back out of the contract.



Consider buyer funding

If the buyer plans to pay in cash, you won’t have to wait for a lender to approve the home loan.

But most of the time, a buyer will need a mortgage, and if that’s the case, consider whether the buyer is preapproved for the home loan. An offer from a preapproved buyer usually is stronger than an offer from a buyer who hasn’t made any financing arrangements.

Consider your home’s value

Say you accept an offer from a buyer who then orders an appraisal of the property. If the appraised market value is less than the offer price, the mortgage company may lower the amount it’s willing to lend the buyer.

But if an offer indicates the buyer is willing to spend his own money to honor the original purchase price, even if the appraisal is unexpectedly low, that offer may be more attractive than one from a buyer who’s more dependent on a loan.

You and your agent should also consider the mortgage company a buyer plans to use. If the lender is well-known in your area and has a reputation of being able to close deals quickly, it’s more promising than if the buyer chooses a lender you’ve never heard of. If you’re worried about the lender, do some research or ask the buyer for more information.

Review closing periods

A buyer who’s willing to close within weeks is more attractive than one who needs or wants months to do the deal. If you’re reviewing similar offers and want to move soon, a quicker close can be a deciding factor.

But if you’re not ready to move, you may be better off with a buyer who’s willing to wait for you to find another home.

Review buyer ‘extras’

Some buyers may offer to pay some of your closing costs as a way to stand out against other offers. Another may make an offer with an escalation clause, offering to outbid another bidder by a certain amount. If you’re considering several offers that have similar price and contingency terms, these kinds of sweeteners can tip the balance.

Getting multiple offers when you sell your home can be exciting. But by considering all parts of the offers, including price, contingencies and ability to close, you can successfully handle multiple offers on your house and sign the best contract.



BEST PRACTICES FOR EMPLOYERS AND HUMAN RESOURCES/EEO PROFESSIONALS

HOW TO PREVENT RACE AND COLOR DISCRIMINATION

General

• Train Human Resources managers and all employees on EEO laws. Implement a strong EEO policy that is embraced at the top levels of the organization. Train managers, supervisors and employees on its contents, enforce it, and hold them accountable.

• Promote an inclusive culture in the workplace by fostering an environment of professionalism and respect for personal differences.

• Foster open communication and early dispute resolution. This may minimize the chance of misunderstandings escalating into legally actionable EEO problems. An alternative dispute-resolution (ADR) program can help resolve EEO problems without the acrimony associated with an adversarial process.

• Establish neutral and objective criteria to avoid subjective employment decisions based on personal stereotypes or hidden biases.

Recruitment, Hiring, and Promotion

• Recruit, hire, and promote with EEO principles in mind, by implementing practices designed to widen and diversify the pool of candidates considered for employment openings, including openings in upper level management.

• Monitor for EEO compliance by conducting self-analyses to determine whether current employment practices disadvantage people of color, treat them differently, or leave uncorrected the effects of historical discrimination in the company.

• Analyze the duties, functions, and competencies relevant to jobs. Then create objective, job-related qualification standards related to those duties, functions, and competencies. Make sure they are consistently applied when choosing among candidates.

• Ensure selection criteria do not disproportionately exclude certain racial groups unless the criteria are valid predictors of successful job performance and meet the employer’s business needs. For example, if educational requirements disproportionately exclude certain minority or racial groups, they may be illegal if not important for job performance or business needs.

• Make sure promotion criteria are made known, and that job openings are communicated to all eligible employees.



• When using an outside agency for recruitment, make sure the agency does

not search for candidates of a particular race or color. Both the employer that made the request and the employment agency that honored it would be liable.

Terms, Conditions, and Privileges of Employment

• Monitor compensation practices and performance appraisal systems for patterns of potential discrimination. Make sure performance appraisals are based on employees’ actual job performance. Ensure consistency, i.e., that comparable job performances receive comparable ratings regardless of the evaluator, and that appraisals are neither artificially low nor artificially high.

• Develop the potential of employees, supervisors, and managers with EEO in mind, by providing training and mentoring that provides workers of all backgrounds the opportunity, skill, experience, and information necessary to perform well, and to ascend to upper-level jobs. In addition, employees of all backgrounds should have equal access to workplace networks.

• Protect against retaliation. Provide clear and credible assurances that if employees make complaints or provide information related to complaints, the employer will protect employees from retaliation, and consistently follow through on this guarantee.

Harassment

Adopt a strong anti-harassment policy, periodically train each employee on its contents, and vigorously follow and enforce it. The policy should include:

• A clear explanation of prohibited conduct, including examples;

• Clear assurance that employees who make complaints or provide information related to complaints will be protected against retaliation;

• A clearly described complaint process that provides multiple, accessible avenues of complaint;

• Assurance that the employer will protect the confidentiality of harassment complaints to the extent possible;

• A complaint process that provides a prompt, thorough, and impartial investigation; and

• Assurance that the employer will take immediate and appropriate corrective action when it determines that harassment has occurred.

WHAT IS AN ESCALATION CLAUSE AND WHEN SHOULD YOU USE ONE?

• When you're deciding on what price to offer on a home, the situation may call for a single price or, in some cases, an escalation clause.

• WHAT IS AN ESCALATION CLAUSE?



• An escalation clause is a real estate contract, sometimes called an escalator, that lets a

home buyer say "I will pay x price for this home, but if the seller receives another offer that's higher than mine, I'm willing to increase my offer to y price." In theory, an escalation clause is fairly simple. In practice, there are a lot of details involved.

• HOW DOES AN ESCALATION CLAUSE WORK?

• While escalation clauses vary significantly, the general escalation addendum has a few basic components:

• What is the original offer of purchase price? • How much will that price be escalated above any other competitive bid? • What is the maximum amount that the purchase price can reach in case of multiple

offers?

For example, buyer Brown offers $100,000 for a home. Her Realtor adds an escalation clause that, in the case of a higher competing offer, will increase Brown's offer in increments of $2,000 above the competing offer. Her escalation clause goes up to a maximum of $110,000.

If no other offers are submitted, Brown's offer remains at $100,000. If buyer Green offers the seller $103,000, then Brown's offer would automatically escalate to $2,000 above that, bringing Brown's offer to $105,000. If buyer Orange offers $111,000 for the home, then Brown's maximum of $110,000 will be eclipsed, and Orange will have the top offer.

WILL THE SELLER ACCEPT AN ESCALATION CLAUSE?

Some home sellers simply state that they will not accept an offer with an escalation clause. They would prefer that every buyer submits exactly what they're willing to pay. Sellers sometimes prefer this method because it motivates buyers to outbid one another on the first try. It also streamlines the paperwork and the decision-making process.

WILL THERE DEFINITELY BE MULTIPLE OFFERS?

Escalation clauses should only be used when the buyer is fairly confident that there will be multiple offers, or when the buyer expects to pay an escalated price. If a buyer submits an offer with an escalation clause, they're laying all their cards on the table: The seller knows immediately how far the buyer will go to secure the home.

If that offer ends up being the only offer submitted, it technically remains at its original price. A Realtor representing the seller will know, however, to counteroffer to the buyer at a higher, escalated price, since the buyer is clearly willing to pay more. While there's no guarantee that the buyer will agree to the higher price, it is likely that they will. A buyer gives up a lot of negotiating power and potentially leaves money on the table when using an escalation clause that goes unmet by a competitor.



HAS THE SELLER'S AGENT CLEARLY STATED A ONE-DAY REVIEW OR MULTIPLE ROUNDS OF OFFERS?

In hot markets, there's a wide variety of offer-review processes. Some state that the property is going on the market on Friday, and all offers will be reviewed the following Thursday. The seller and their Realtor will make a final decision that day. This situation can be ideal for the escalation clause, when a buyer knows it's an all-or-nothing offer.

Other sellers take a back-and-forth approach. They may collect offers from buyers for one week, and then respond to a handful of the best offers by saying "Send us your highest and best offer." This technique is particularly disliked by many consumers and professionals for its lack of clarity, but it's important to know that it exists.

Before writing an offer, a buyer's Realtor can inquire to feel out the details and make sure the buyer is prepared for the situation. Writing an escalation clause on the initial offer in a multistage situation could put the buyer in a weak position during the second round. It's perfectly legal for a seller's Realtor, with the seller's permission, to reveal to all potential buyers what the top initial offer is and to ask everyone to beat it. In this case, the escalation clause would flesh out that buyer's maximum, and they would lose a competitive edge.

BID WITH CAREFUL CONFIDENCE AND KNOW THAT EACH SITUATION IS UNIQUE

If you're considering an escalation clause, your Realtor is probably knee-deep in researching the circumstances around the seller's process of reviewing offers. The Realtor's knowledge of normal practices and probable outcomes in your market will make your offer much more likely to succeed.

Escalation clauses can cause a lot of stress for home buyers, but when they're boiled down to the basics, they're fairly straightforward. Remember to be realistic, to be comfortable with how much you're willing to offer, and to confidently go after a home at that price. Buyers shouldn't be tempted to escalate their purchase price above what they are comfortable paying. At the same time, they should realize that inventory and interest rates are low, and aggressively pursuing a good home at a good price is necessary to winning in a competitive market. Potential buyers who are only looking to get a steal often end up not being buyers at all.

Evidence of Funds documents and other forms when preparing or presenting multiple offers

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their clients. This obligation to the client’s interests is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly.” (from Article 1 of the 2002 REALTORS® Code of Ethics) “REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.” (Standard of Practice 1-6) Perhaps no situation routinely faced by REALTORS® can be more frustrating, fraught with



potential for misunderstanding and missed opportunity, and elusive of a formulaic solution than presenting and negotiating multiple purchase or lease offers and/or counter-offers on the same property. Consider the competing dynamics. Listing brokers are charged with helping sellers get the highest price and the most favorable terms for their property. Buyers’ brokers help their clients purchase property at the lowest price and on favorable terms. Balanced against the Code’s mandate of honesty is the imperative to refrain from making disclosures that may not, in the final analysis, be in a client’s interests. (Revised 11/01) Will disclosing the existence of one offer make a second potential purchaser more likely to sign a full price purchase offer—or to pursue a different opportunity? Will telling several potential purchasers that each will be given a final opportunity to make their best offer result in spirited competition for the seller’s property—or in a table devoid of offers? What is fair? What is honest? What is to be done? Who decides? And why is there not a simple way to deal with these situations? As REALTORS® know, there are almost never simple answers to complex situations. And multiple offer presentations and negotiations are nothing if not complex. But, although there is not a single, standard approach to dealing with multiple offers, there are fundamental principles to guide REALTORS®. While these guidelines focus on negotiation of purchase offers, the following general principles are equally applicable to negotiation of lease agreements. (Revised 11/01) • Be aware of your duties to your client—seller or buyer—both as established in the Code of Ethics and in state law and regulations. (Revised 5/01) The Code requires you to protect and promote your client’s interests. State law or regulations will likely also spell out duties you owe to your client. • The Code requires that you be honest with all parties. State law or regulations will likely spell out duties you owe to other parties and to other real estate professionals. Those duties may vary from the general guidance offered here. REALTORS® need to be familiar with applicable laws and regulations. Be aware of your duties to other parties—both as established in the Code of Ethics and in state law and regulation. • Remember that the decisions about how offers will be presented, how offers will be negotiated, whether counter-offers will be made and ultimately which offer, if any, will be accepted, are made by the seller—not by the listing broker. (Revised 5/01) • Remember that decisions about how counter-offers will be presented, how counter-offers will be negotiated, and whether a counter-offer will be accepted, are made by the buyer—not by the buyer’s broker. (Adopted 5/01) • When taking listings, explain to sellers that receiving multiple, competing offers is a possibility. Explain the various ways they may be dealt with (e.g., acceptance of the “best” offer; informing all potential purchasers that other offers are on the table and inviting them to make their best



offer; countering one offer while putting the others to the side; countering one offer while rejecting the other offers, etc.). Explain the pluses and minuses of each approach (patience may result in an even better offer; inviting each offeror to make their “best” offer may produce a better offer[s] than what is currently on the table—or may discourage offerors and result in their pursuing other properties). Explain that your advice is just that and that your past experience cannot guarantee what a particular buyer may do. Remember—and remind the seller—that the decisions are theirs to make—not yours, and that you are bound by their lawful and ethical instructions. • When entering into buyer representation agreements, explain to buyers that you or your firm may represent more than one buyer-client, that more than one of your clients or your firm’s clients may be interested in purchasing the same property, and how offers and counter-offers will be negotiated if that happens. (Adopted 5/01) Explain the pluses and minuses of various negotiating strategies (that a “low” initial offer may result in the buyer purchasing the desired property at less than the listed price—or in another, higher offer from another buyer being accepted; that a full price offer may result in the buyer purchasing the desired property while paying more than the seller might have taken for the property, etc.). (Adopted 5/01) Remember—and remind the buyer—that the decisions are theirs to make—not yours, and that you are bound by their lawful and ethical instructions. (Adopted 5/01) • If the possibility of multiple offers—and the various ways they might be dealt with—were not discussed with the seller when their property was listed and it becomes apparent that multiple offers may be (or have been) made, immediately explain the options and alternatives available to the sellers—and get direction from them. • When representing sellers or buyers, be mindful of Standard of Practice 1-6’s charge to “. . . submit offers and counter-offers objectively and as quickly as possible.” (Revised 5/01) •With the seller's approval "...divulge the existence of offers on the property" consistent with Standard of Practice 1-15. (Adopted 11/02) •While the Code of Ethics does not expressly mandate “fairness” (given its inherent subjectivity), remember that the Preamble has long noted that “. . . REALTOR® has come to connote competency, fairness, and high integrity. . . .” If a seller directs you to advise offerors about the existence of other purchase offers, fairness dictates that all offerors or their representatives be so informed. • Article 3 calls on REALTORS® to “. . . cooperate with other brokers except when cooperation is not in the client’s best interest.” Implicit in cooperation is forthright sharing of information related to cooperative transactions and potential cooperative transactions. Much of the frustration that occurs in multiple offer situations results from cooperating brokers being unaware of the status of offers they have procured. Listing brokers should make reasonable



efforts to keep cooperating brokers informed. Similarly, buyer brokers should make reasonable efforts to keep listing brokers informed about the status of counter-offers their seller-clients have made. (Revised 5/01) • Realize that in multiple offer situations only one offer will result in a sale and one (or more) potential purchasers will be disappointed that their offer was not accepted. While little can be done to assuage their disappointment, fair and honest treatment throughout the process; coupled with prompt, ongoing and open communication, will enhance the likelihood they will feel they were treated fairly and honestly. In this regard, “. . . REALTORS® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, ‘Whatsoever ye would that others should do to you, do ye even so to them.’ ” (from the Preamble to the Code of Ethics).

WHY YOU MAY LOSE A BIDDING WAR BUT STILL GET THE HOUSE

IF YOUR OFFER IS REJECTED, A LITTLE PATIENCE (AND A BACKUP OFFER) MAY PAY

OFF.

When there are more buyers than available homes in your area, real estate competition can

get fierce. Chances are, not every offer you make will win the deal. But don’t despair; it’s

possible to turn that next rejection into your dream home.

Here are seven reasons why your initial unaccepted offer may eventually close the deal.

1. A backup offer is a secret weapon

You made your best offer, but it wasn’t strong enough to secure the home — maybe your

competition offered more money, or their terms were slightly better. All is not lost. Ask the seller

to accept your offer as a backup offer. There is no cost to you, yet you are in line to get the

property if the deal goes sour.

2. It’s all so close, they can taste it

Once a seller has an offer and it’s progressing, they are already psychologically moving from

their home. They’re picturing closing day and the moving trucks in the driveway. If the deal

abruptly comes to a screeching halt, the seller is much more willing to move forward with a

backup offer just to keep that momentum going.



3. Your chances improve after the inspection

I have been successful in backup situations where an inspection has uncovered more

issues than the first buyer wants to deal with and the buyer walks away from the house. The

good news for you is that those issues won’t go away. The seller may realize he can no longer

play hardball and be more willing to accept your offer, rather than lose the deal a second time.

4. We’re in an era of tougher loan qualifications

As loan qualifications become tighter and more scrutinized, some homebuyers may not

qualify in the end and will have to back out of the deal. In this situation, you have the

advantage of jumping in to save the day.

5. Set a 30-day time limit

The longer the current transaction takes, the greater the chance the two parties are struggling to

come to an agreement. Set an expiration date of 30 days for your backup offer. If the two parties

are unable to close the deal, it may force the seller to settle for the next best thing before it’s too

late.

6. Get first right of refusal

Ask for a first-right-of-refusal clause in your backup offer. In this case, you’re not bound to

purchase the property, but you’re first in line if the other deal falls through.

7. Get the terms of the backup in writing

Once the seller agrees to accept your offer as backup, get a fully executed detailed agreement,

in writing. Be sure they are obligated to sell to you within a certain period at the agreed-upon

terms if the property becomes available.

Bonus for the backup buyer

Legally, the sellers have to disclose any problems the first-position buyers uncovered, even

ones that made them bolt! As a result, you’ll know the property’s flaws in advance, saving you

time and money on your own inspections.

BEST PRACTICES FOR MULTIPLE OFFER SITUATIONS



Best practices for handling multiple offer situations help to make sure you’re in line with ethical and fair business practices.

Don’t Forget Your Loyalties: This is a big one, and it’s obvious, but many agents forget that you can’t disclose information that your client doesn’t authorize. Nowhere is it written that you must disclose whether or not you have other offers on the table. Unless your seller has specifically directed you to do so, you should not automatically answer that question if asked by a buyer’s agent or buyer. I have seen situations where a buyer will pull out of a deal because they think there is too much competition, and you can be legally liable for any negative consequence that results from your disclosing information you shouldn’t have.

Treat Everyone the Same: This is another obvious one, but it’s important and bears repeating. To avoid accusations, legal action, and overall negative impact to your reputation as a professional, it’s imperative that you treat everyone the same way. If you’re sending out a request for highest and best, send the exact same e-mail, forms, etc., to all interested parties who have seen the property so there is absolutely no doubt that everyone was informed of the status and had a chance to make an offer if they wanted. It’s better to e-mail an agent that showed the place six months ago along with everyone else, than it is to have your deal blown up by a lawsuit from a buyer who feels they were unfairly kept from knowing the latest update and opportunity to place an offer.

Keep Unbelievably Good Records: This is a great general piece of advice for all REALTORS®, but in the current market — where multiple offers are commonplace again — it’s essential. Keep an accurate log of the date and time each offer came in, and make sure to create a strong paper trail whereby you confirm receipt of all offers as they come in and immediately forwarded them to your client for review. If you’re going to list a property, you’re going to deal with an upset buyer and their agent at some point. It’s imperative that you get organized now, so if you’re accused of not handling a file correctly, you have ample evidence to help defend yourself.

Every firm must maintain a transaction log identifying ALL real estate brokerage activity. This includes, at a minimum, all listings, sales and broker price opinion’s.

The log must identify the real estate service provided, the name of the licensee providing the service, identification of the parties or property and the name of the reviewing managing broker in the event of a broker within the first two years of licensing. It is not necessary to log individual documents within a transaction. Rather, the transaction itself must be logged.

Using the log as an index, designated broker or a DOL auditor should be able to locate a transaction file and then review the transaction file for all details related to documentation. All of these potential disciplinary issues are avoidable with development of good practices. If brokers need assistance in developing a better approach to any of these potential problems, brokers should work with their managing broker.



Builder Contracts

Source: http://realtormag.realtor.org/law-and-ethics/law/article/2002/12/contracts-payback-time Builder contracts are often different than the standard earnest money agreement, and are most often written for the benefit of the builder, with little or no protection for the buyer. A builder, for example, may ask for such a deposit up front to help offset construction expenses. The builder uses the term “earnest money” even though the builder has no obligation or intention of returning the money. Most of us understand earnest money to be a deposit made by prospective buyers as evidence of their intention to complete a transaction. Earnest money is often held by a neutral third party, who awaits word that the transaction has closed before forwarding the deposit to the seller. Let’s look at a common situation that illustrates the confusion that can occur when a seller refers to a nonrefundable deposit as earnest money. First-time buyers Monique and Alex make an offer on a planned $100,000 new-construction house. The builder insists on using his own contract, and the buyer’s agent explains, “If you want to buy that house, you’ll have to use the builder’s contract, but you should have an attorney review it.” Monique is afraid an attorney will be costly and that the builder will refuse to revise the contract anyway. The buyer’s agent concedes that in her experience the builder has never changed the contract. “Besides,” says the buyer’s agent, “I’ve sold lots of houses with this builder, and I’ve never had a problem.” Resigned and trusting, Alex and Monique give the builder a $10,000 nonrefundable earnest money deposit as stipulated in the contract. The builder begins construction. Then the trouble begins. Alex loses his job. The couple can’t close because their loan is in limbo until Alex finds a new job. The builder says, “Sorry, but we had a contract. If you can’t close, the house is mine, and I need to sell it to another party.” The buyers are in a fix. They’re going to lose their life savings. But the builder has a legitimate issue—he needs to close on the house to recoup his costs. Alex and Monique sue the builder for return of their deposit. The builder’s attorney argues that the contract specifically says the money isn’t refundable. But the buyers’ attorney argues that the parties intended the transaction to be an installment sale because there was a partial payment when the contract was signed and one or more payments were due in the future—in this case, at closing. In other words, the buyers bought the house and the seller is holding title to ensure that the buyers make the final payment. The attorney argues, in effect, that the deposit payment represents an equitable mortgage. Although this isn’t a mortgage according to the standard use of the term, courts often treat it as one because the parties appear to have set up an agreement in which payments are made over

http://realtormag.realtor.org/law-and-ethics/law/article/2002/12/contracts-payback-time



time and the creditor holds an interest in the property as security. The judge agrees. Based on the decision, the builder would have to foreclose on the equitable mortgage and the buyer would have a limited time to bring the payments up to date. If the buyer did so, the builder would be whole. If the buyer couldn’t pay in time, the buyers would lose their deposit and the builder would get the house and keep the $10,000 deposit. If you were the judge, how would you decide? Would it make a difference if the payment on a $100,000 house were $1,000 or $10,000? Judges want to provide as much justice as possible to all sides. In every case I’ve tried where the deposit amount was substantial relative to the purchase price, the judge found for the buyer and made the builder foreclose on the equitable mortgage. Situations like Alex and Monique’s are based in misunderstandings. The builder thought using the term “nonrefundable” would give him security. In the end, he spent many months, and considerable money, settling a dispute. When they signed the contract, the buyers didn’t imagine that the reference to “nonrefundable earnest money” would impact them; then they found themselves in a position of wanting a refund. Warning: If a judge rules that a contract doesn’t represent an equitable mortgage or the buyers don’t want to pursue a suit against the builder, they may still try to recover their deposit by suing you. Navigate the nonrefundable earnest money minefield with extreme caution. When you work for buyers: If you see the term nonrefundable earnest money, raise a red flag with your clients. Always recommend that your clients have an attorney review their contract. Even if you believe the seller won’t negotiate terms, the attorney will give the clients sound legal advice, which should also protect you from being asked to shoulder a loss for your clients. Remember that earnest money is typically held by a third party, and a down payment is held by the seller. Alert your clients to the difference, so they’re aware that money held by the seller may not be easily recovered. Armed with a realistic understanding of the semantics behind the term nonrefundable earnest money, your buyers will be spared misunderstandings, and potentially, lost funds.

Professional Cooperation Getting involved in malicious or selfish acts that are considered as unethical are highly prohibited and disciplinary action can also be taken against such brokers. For a successful and long term business, brokers and licensees need to work well with other brokers and licensees. A successful real estate agency has and maintains good connections and references. When other real estate agencies have trust in your sincerity and good will, your



reputation among clients will automatically increase. Safety and Risk Avoidance Reminders Common concepts relating to risk avoidance practices in the residential real estate sector.

According to the National Association of Realtors, less than half of the country’s Realtor’s have

a personal safety plan or procedure in place. With workplace injuries and fatalities on the rise

(including but not limited to assaults and traffic accidents), real estate professionals are being

encouraged now more than ever to implement Personal Safety Procedures.

Procedures might include:

• meeting a potential client in a public place rather than an empty residence

• requiring a client to check in at the Realtor’s office prior to a first meeting (providing one

is not alone)

• notifying associates, family, or friends of one’s whereabouts or location

• and checking in regularly with home-office.

If this task seems daunting, there are now quite a few affordable smart phone apps that: track

one’s geographic location; allow for emergency alerts; autodial 911; or notification of friends and

family of your location.

Although overall violence involving real estate professionals is on the decline, injuries due to

falling equipment; unsafe buildings, and traffic incidents are not. Brokers must consider the

overall big picture to implement personal safety procedures, and teach their associates to do the

same in order to limit their liability, minimize injuries and eliminate fatalities.

Evolving Flood Insurance Issues and Referring Customers to Flood Insurance Agents CHANGES TO THE NATIONAL FLOOD INSURANCE PROGRAM AND HOW IT AFFECTS CONSUMERS

April 2015 Congress implemented the Homeowner Flood Insurance Affordability Act (HFIAA) which passed sweeping amendments to the earlier Biggert-Waters Act of 2012. What this means for many homeowners is an increase in premiums and surcharges, but there are limits on premiums of 15 - 18% for primary residences, and 25% for secondary homes.



Congress uses the premium increases to cover the debt incurred due to catastrophic claims filed by homeowners amounting to over $24 billion dollars. When a flood insurance policy renews, the premium increase must comply with HFIAA, a minimum of a five percent (5%) for pre-FIRM subsidized policies, a fifteen percent (15%) increase on your primary residence, and even as much as twenty-five percent (25%) on secondary residences. Under new legislation, homeowners must prove ownership and location of the primary residence in order to qualify for the reduced surcharge. Homeowners will need to provide this information to their insurance agent. Subsidized secondary residences may see a rate increase of up to twenty five (25%) percent depending upon the property and its location. Another charge homeowners have not seen before is the new HFIAA surcharge, which is $25.00 for primary residences and up to $250.00 for all others. Congress has not set a cap on these surcharges, so depending upon the outcome of HFIAA changes, and number of homeowner claims, additional changes or increases in surcharges may apply. Under new changes, properties located in “V-Zones, or “high-velocity” will see increases up to thirteen percent (13%); “A” or riverine Zones located near a spring, stream or lake, will see increases up to twenty-three percent (23%); and “X” Zones (outside the 500 year flood plain) may experience increases from 7% to 20%. For questions or additional information about flood insurance policies, homeowners may contact their insurance agent. Insurance agents should be trained and certified to write a flood insurance policy either through a WYO (Write Your Own) insurance company, or registered with the National Flood Insurance Program through FEMA. WYO companies are listed on FEMA’s website, and should all be substantially the same, as they are regulated by federal law and overseen by FEMA

Disclosure and Dual Agency Relationships Consensual Dual Agency Under THE REFORM ACT OF 1997, a broker who has written agency agreements with both parties MAY represent both clients. HOWEVER, all parties must give informed consent in writing PRIOR to signing an agreement, disclosing a change of agency status from seller’s and/or buyer’s agency to consensual dual agency. PRIOR to signing, both parties must have been given the pamphlet on the Law of Agency disclosing the terms of compensation. The Code of Ethics of the National Association of Realtors® states that a Realtor MAY NOT accept compensation from more than one party, even if permitted by law, UNLESS full knowledge of the compensation is disclosed to all parties to the transaction. Because your broker is responsible for your actions, as an agent you must always check with the broker’s policy on dual agency PRIOR to entering into this relationship. In-house transactions can create a situation that involves “dual agency”. The most common type of dual



agency is called pure dual agency. This commonly occurs when two agents from the same company are each working with a party of a transaction in common and the listing agent has a written listing agreement, and the selling agent has written buyer’s agency. In PURE DUAL AGENCY, the broker has dual agency with both buyer and seller. Listing and selling agents have an “employment” relationship with the broker. Listing AND selling agent have a dual agency with both buyer and seller. Because it is natural for the seller to want the highest price and best terms possible, and for the buyer to want the lowest price and most desirable terms possible, the broker representing both parties MAY experience an immediate conflict of interest. It is important that both parties understand and consent to the dual agency. Each party must be counseled to keep to themselves any confidential information that MAY be detrimental if passed on to the other party. This means that the buyer and seller should NOT reveal any information to the agents or the broker discussing any situations in regard to the transaction. The duties of the dual agent include all of the duties that the agent owes ALL parties involved in any transaction: 1. Reasonable skill and care 2. Honesty and good faith 3. Present all offers 4. Disclose all existing material facts 5. Account for all money and property received 6. Provide Law of Real Estate Agency Pamphlet 7. Disclose representation of all parties in PLUS: UNLESS additional duties are agreed to in writing, the duties of the dual agent are limited to those above PLUS the following: 1. Take no action that is adverse or detrimental to either party's interest in a transaction. 2. Disclose any conflicts of interest to both parties, in a timely manner. 3. Advise both parties to seek expert advice in matters beyond the agent’s expertise. 4. Do NOT disclose any confidential information from or about either party even after termination of agency UNLESS under subpoena or court order. UNLESS otherwise agreed in writing, the dual agent is NOT obligated to seek additional offers for the seller while the property is subject to an existing contract for sale. UNLESS otherwise agreed in writing, the dual agent is NOT obligated to seek additional properties for the buyer while the buyer is a party to an existing contract to purchase, OR to show properties when there is no written agreement to pay the agent a commission. The dual agent MAY:



Show alternative properties NOT owned by the seller to prospective buyers, and MAY list competing properties for sale without breaching any duty to the seller. Show properties in which the buyer is interested to other prospective buyers without breaching any duty to the buyer. Example Agent Joel shows Mrs. Clark his listing 1357 Cliff St. PRIOR to this showing, Joel was representing the seller. Mrs. Clark wishes to make an offer on the home, but she wants Joel to represent her. Joel explains that he is the seller’s agent, and is representing ONLY the seller, UNLESS BOTH buyer and seller agree to a dual agency in writing. Joel further explains that in this case, he would represent NEITHER party, BUT he would be fair and honest in all dealings, and would NOT impart any confidential information to either party. Mrs. Clark agrees to this. HOWEVER, Joel knows that his broker is responsible for his actions, so Joel first checks with his broker in respect to the company’s policy. Joel’s broker agrees, making the broker a dual agent. Joel next addresses this issue with Mr. Jones, his seller, and Mr. Jones agrees to a written dual agency and gives up his seller’s representation. Joel and the broker then proceed with the transaction taking care to keep confidentiality on both sides.

Subject Matter Exceeding the Scope of a Broker's License and Making Competent Referrals to Third-Party Vendors

The real estate market runs by referrals and market links. The best practice for a broker is to

remain transparent from the beginning while keeping record of everything. When referring

third party vendors like home inspectors, termite inspectors, structural engineers,

environmental specialists, lenders, and attorneys, broker should have the consent of buyer or

seller that the broker will not be liable for any consequences.

According to RCW 18.235.130, the broker must never misrepresent any information or he/she

can be held liable.

The best way to make referrals to third party vendors is to:

1. Make a list of all categories of experts whom buyers or sellers may wish to consult,

including home inspectors, termite inspectors, structural engineers, environmental

specialists, lenders, and attorneys.



2. List at least three experts under each category. The licensee may provide choices on the

basis of past experience or recommendations from others, but must disclose any experts on

the list who are affiliated with the licensee and or the brokerage.

3. Give the same list to every seller or buyer.

4. Accept no referral fee or other compensation from any individuals or companies

on your list.

5. Add a disclosure statement that you have no affiliations or links with any company,

unless clearly stated in writing, and the referral list is universal for all sellers and buyers,

other than normal updates, and a statement that the licensee accepts referral fee or other

compensation.

When legal and other issues outside the expertise of the licensee are discussed, it is in benefit

of the licensee and the client to refer a specialist. According to agency law, the broker is only

bound to perform agency duties, not fiduciary duties. When a subject matter exceeds the

scope of a broker's license, it is important to make referrals to specialized professionals like,

lawyers, attorneys, inspectors, structural engineers etc.

a. Signatory Authority for Clients Recognizing what constitutes signatory authority for clients, i.e., guardians, power of attorney, personal representatives, corporations, LLC’s, trustees When closing real estate transactions for a client, corporation, guardianship, probate entity or trust, it can be confusing to determine who signs the documents at the closing table. Below is what constitutes the signatory authority: Partnership In partnerships, two entities are bound together with an agreement. Agreements are of different kinds, each having its own particulars, but overall there are two kinds, general partnership and limited partnership.



When signing, it is very important to first verify the authority of the partners. Unless the agreement clearly states otherwise, the general rule is that all partners must sign all kinds of deeds Limited Liability Companies Limited Liability Companies (LLCs) are a form of enterprise in which partnership and corporate structures are blended. Members of the LLC cannot be held personally liable for the company's debts or liabilities. When signing a deed for an LLC, it is necessary to verify the formation documents such as the operating/management agreement to determine who must sign the deed. As in a Partnership, unless the agreement clearly states otherwise, general rule is that all the members of LLC must sign all transaction documents. Corporations When signing transaction documents with corporations, it is required to verify the resolution of Board of Directors approving the transaction and stating who may sign on behalf of cooperation. All of the documents must be official and signed by corporation’s secretary with official seal. Trusts When a trustee or trust is holds title, it is necessary to review the agreement to confirm trustee’s powers. It is duty of broker to clarify the identity of the clients to assure the privacy and confidentiality of the trust documents and verify the official statement. Power of Attorney Power of Attorney is a written authorization document in which one person (known as the principal) appoints another person to act as an agent on his or her behalf. The PoA can represent the principal in legal matters and sign for the principal. Guardianship A guardian is a person appointed to protect the rights of a person. In guardianship, a court order is given specifying the powers of the guardian and conservator. Generally guardians do not receive full control of the real estate assets, unless otherwise stated. When closing a real estate transaction, it is necessary to review the letter of guardianship and the powers given to guardian.



Real Estate Advertising Advertising and Social Media Guidelines In online marketing or advertising through banner ads, the real estate licensee should link to a

webpage with disclosure that is a single click away from the viewable page, unless the ad

itself has such full disclosure.

One Click Away means that your official website is a single click away from the banner. When

customer clicks on it, he or she will directly land to the home page or relevant inner page that

displays full disclosure, NOT directed through a third party website.

Real estate licensees and brokers are required to follow precise guidelines while advertising

on internet and social media. It is necessary for brokers to follow general guidelines in their

online activities. For instance, as with all real estate advertising, the firm’s name or assumed

name as licensed, must be prominently displayed on social media pages and official website

and other third party websites.

Licensed entities can use the internet in multiple ways to contact consumers about real estate

services and to advertise properties or their services. "Licensee" and "Licensed Firm"

disclosure will help to ensure that online consumers know that they are working with a

licensed entity, who they are, and where their primary business office is located.

For a licensed firm disclosure, it is necessary to display following information:

1. The firm's name or assumed name(s) as licensed or registered with Washington State Department of Licensing.

For a licensee or broker’s disclosure, it is necessary to display following

information:

1. The licensee's name as shown on their license as issued by the Washington State Department of Licensing, Real Estate Program.

2. The registered firm name or assumed name of the firm in which the licensee is

affiliated as registered with Washington State Department of Real Estate Licensing.



Licensing Law requirements for advertisement All internet related advertising that consumers can view or experience as a separate unit, (for

example, email messages or Web pages) must require full disclosure.

The burden of proof of such full disclosures falls on the licensee, the firm, and designated

broker (licensed entities) when addressing a consumer complaint. This disclosure does not

apply once an agency relationship has been established with a buyer or seller. Examples of

online communications are listed below:

The Web Whenever a licensed entity owns a website or controls its content, every viewable page

should include full disclosure. (A "viewable page" is one that may or may not scroll beyond the

borders of the screen and includes the use of framed pages.) If you give permission for a 3rd

party to advertise your listings maintain regular and thorough oversight to ensure the

information is correct and always adhere to copyright laws.

Email, Newsgroups, Discussion Lists, Bulletin Boards Such formats must include a full disclosure at the beginning or end of each message. This

would not apply to communications between a licensee and a member of the public provided

that the member of the public has sent a communication to the licensee and the licensee's

initial communication contained the disclosure information required above.

Instant Messages Full disclosure is not necessary in this format if the licensed entity provided the written full

disclosure via another format or medium (e.g., e-mail or letter) prior to providing, or offering to

provide licensable services.

Social Media



Full disclosure must be prominently displayed and easily understood and be no more than one

click away from the viewable page. Each real estate firm should have and maintain a written

policy regarding their licensee’s use of social media.

Multimedia Advertising (e.g. Web based, executable e-mail attachments, etc.)

Full disclosure should be visible as part of the advertising message.

Banner Ads Must link to a webpage that has full disclosure that is a single click away from the viewable

page, unless the banner ad has such full disclosure.

Chat Full disclosure prior to providing or offering to provide licensable services during the chat

session or in text visible on the same webpage that contains the chat session.

Social Media Social media sites are extremely popular as the most visited websites, where users tend to

spent most of their time. Advertising and selling services on social media has great potential.

However, a licensee must always keep remember to follow guidelines set by Washington State

Department.

On all social pages, the real estate agency must prominently mention its licensed name,

address and phone number. A full written disclosure and the policies should also be

prominently visible at the beginning or end of the page. All the given links in social media pages

should always be one click away from the official site, means that customers should be directly

referred to the official site and not through some third party website.

When working online, real estate licensee must know his or her responsibilities, especially

when third party websites are involved. Following are the concerns that must never be



neglected by a broker or firm.

Licensees who maintain individual Web sites should ensure that when listings have expired,

the listings are removed from Web sites in a timely manner. A possible solution to this

problem might be to design a web site program to automatically remove a listing at

expiration.

Similarly, sites maintained by the multiple listing services of which the licensee is a member

should be updated in a timely manner.

Licensees who submit information to third party sites, must provide written communication

of any change of listing status to the publisher in a timely manner.

Do not give the impression that you are licensed or are providing services in jurisdictions

where you are not licensed.

Licensed entities must not advertise other licensed entities' listings without the written

permission and if given, must not alter the online display or any informational part of the listing

without written permission of the Designated Broker or listing broker.

Metatags are descriptive words hidden in a Web site's HTML code that search engines use to

index the Web site. Most sites use common words such as real estate, Washington, city names,

homes, houses, etc.

Those uses are allowed, but some web site owners have also inserted their competitor's names

into the metatags, so that when a potential customer searches for their site, the competitor's

site will also come up as a match. Courts have ruled that this constitutes trademark infringement.

All licensees must periodically review the advertising and marketing information on their web

site and update as necessary to assure that the information is current and not misleading.



Appendix I: Course Curriculum Resource Materials a. Washington State Department of Licensing Real Estate Program Webpage:

http://www.dol.wa.gov/business/realestate/index.html

b. National Association of Realtors’® Federal Issues Tracker: www.nar.realtor/political-advocacy/nars-federal-issues-tracker

c. Washington Legislature Webpage

http://leg.wa.gov/

d. Douglas v. Visser, 295 P.3d 800 – Wash: Court of Appeals, 1st Div. 2013: https://casetext.com/case/douglas-v-visser-1 and other sources

e. Cultum v. Heritage House Realtors, 694 P. 2d 630 – Wash: Supreme Court 1985:

https://scholar.google.com/scholar_case?case=17184789156320884377&q=cultum+v.+heritage+house&hl=en&as_sdt=6,48&as_vis=1 and other sources.

f. Edmonds v. John L. Scott Real Estate, 942 P. 2d 1072 – Wash: Court of Appeals, 1st Div.

1997 http://scholar.google.com/scholar_case?case=16934759942007581459&q=edmonds+v.+scott+real+estate&hl=en&as_sdt=6,48&as_vis=1 and other sources

g. [ADVERTISING GUIDELINES FORTHCOMING] h. Solar Guidance

i. Renewing license (webpage): http://www.dol.wa.gov/business/realestate/brokersrenew.html 1. Uploading document instructions (PDF):

http://www.dol.wa.gov/business/docs/uploading-document-instructions.pdf ii. Updating license (webpage):

http://www.dol.wa.gov/business/realestate/brokersupdate.html 1. Separating from a firm/inactivate license (video): https://youtu.be/yTdegMkU5O4 2. Responding to a firm request/transfer your license to a new form/activate your

license (video): https://youtu.be/pLUUl9xn688 iii. Fingerprinting and background checks (webpage):

http://www.dol.wa.gov/business/fingerprinting.html

http://www.dol.wa.gov/business/realestate/index.html

http://www.nar.realtor/political-advocacy/nars-federal-issues-tracker

http://leg.wa.gov/

https://casetext.com/case/douglas-v-visser-1



http://scholar.google.com/scholar_case?case=16934759942007581459&q=edmonds+v.+scott+real+estate&hl=en&as_sdt=6,48&as_vis=1

http://scholar.google.com/scholar_case?case=16934759942007581459&q=edmonds+v.+scott+real+estate&hl=en&as_sdt=6,48&as_vis=1

http://www.dol.wa.gov/business/realestate/brokersrenew.html

http://www.dol.wa.gov/business/docs/uploading-document-instructions.pdf

http://www.dol.wa.gov/business/realestate/brokersupdate.html

https://youtu.be/yTdegMkU5O4

https://youtu.be/pLUUl9xn688

http://www.dol.wa.gov/business/fingerprinting.html

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