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TREC Contracts (Ratification-of-fee Paragraph)

July 22, 2010 Advertisement

TREC Broker-Lawyer Committee keeps ratification-of-fee paragraph in contracts
The TREC Broker-Lawyer Committee was considering removing the ratification-of-fee paragraph from most TREC contracts. The committee has since abandoned the idea and will instead propose smaller changes to that portion of the contract.

Learn more about this paragraph, including some misconceptions about its purpose, from the July Legal column in Texas REALTOR® magazine. Though the column was written when the committee was still entertaining ideas about removing that paragraph, the article thoroughly discusses how the paragraph should be used ... and how it is sometimes misused.

You also can listen to a discussion regarding the ratification-of-fee paragraph on Texas REALTOR® Update Episode 79.

Be the first to know about issues, regulations, and politics that affect real estate
Want stay up-to-date on the latest issues affecting you and your clients? Sign up for text-message updates from the Texas Association of REALTORS® and TREPAC. All you have to do is text TREPAC to 21824 to receive periodic updates on real estate issues, regulations, and elections.

A strong TREPAC protects your pocketbook and the real estate industry in Texas. Stay informed. Text TREPAC to 21824.

Hear how to reply to questions from census workers about listings and managed properties
Listen to Texas REALTOR® Update for information about whether you're obligated to answer questions from U.S. Census workers regarding your listings or properties you manage.

Also on the podcast:
  • The decision to keep the ratification-of-fee paragraph in the TREC contracts
  • Your opportunity to participate in a Tele-Town Hall meeting that could shape eminent domain policy in our state
  • The importance of making your Web-site mobile-friendly
No matter your comfort level with technology, it's easy to listen to Texas REALTOR® Update: To read notes from this episode, visit the podcast archives.

Two Texas REALTORS® selected for national leadership academy
Jason Wright of Tyler and Leigh York of Weatherford have been chosen to attend NAR's 2011 Leadership Academy. Wright and York will join 25 other REALTORS® from across the U.S. to participate in a nine-month program that develops institutional knowledge and leadership skills.

Four Texas REALTORS® have been among the 80 graduates of the Leadership Academy since its inception in 2008: Alvin Collins of Midland, Dwight Hale of San Antonio, Brooke Hunt of Flower Mound, and Hanne Sagalowsky of Dallas.


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Real estate fact: Nearly nine out of 10 buyers search for homes online, according to NAR. How do you make those nine people your clients? See how with a free Agent Powerhouse Kit.

New guidance on HVCC
Fannie Mae has issued guidance regarding the Home Valuation Code of Conduct. The guidance includes a reminder to lenders that appraisers must have the appropriate knowledge and experience for a specific geographical location and particular type of property.

Other items in the guidance document:
  • The HVCC does not require the use of an appraisal management company (AMC)
  • Nothing in the HVCC prohibits real estate agents or brokers from contacting the appraiser about concerns or errors with the appraisal
  • Appraisers may use data from short sales and foreclosures if they deem that information appropriate for the assignment.

Benefits: When you go from listing agent to property manager ... SmartMove
Your clients move, and the listing doesn't sell. Suddenly, they want it rented out. Fast. Should this happen to you, there's a new Texas Association of REALTORS® benefits partner that can help. TransUnion's SmartMove is an online system that provides a quick leasing recommendation on prospective tenants. During July, the normally $25 criminal background check and credit report is only $15 when you visit TexasRealtors.MySmartMove.com and use the promotional code "TARNY814." The cost of this service, whether $15 or $25, can always be paid by the prospective tenant. And that's smart for you.

Download the interactive brochure for more information or visit TexasRealtors.MySmartMove.com now.

Links: Real estate-related news from the Web

Legal Q&A: Flat-fee listings and minimum services
Where can I find the minimum-services requirements concerning presenting and negotiating offers? I represent sellers and buyers and want to be sure that I am complying with the law.

The Real Estate License Act contains provisions that impose requirements on buyer's agents as well as seller's agents concerning the presentation of offers and negotiating transactions. For example, in most cases the buyer's agent must send a copy of any offer to the listing broker, even if the listing broker consents to the delivery of an offer directly to the seller. In turn, the listing broker must answer a seller's questions regarding any offer made to the seller and present any counteroffer from the seller to the buyer.

Note: These minimum-services rules apply regardless of the agreed-upon compensation payable to the broker.

View the applicable provisions of The Real Estate License Act

Browse the Legal FAQs on TexasRealtors.com.

Fannie Mae seeks to curb strategic defaults
Homeowners who have the ability to pay their mortgages but think it makes financial sense not to may want to think again. Fannie Mae announced a new policy directed at borrowers who choose a "strategic default." Those who walk away from their mortgages without making a good-faith effort to resolve the situation will be barred from getting a new Fannie Mae-backed mortgage loan for seven years.

If that doesn't get people's attention, perhaps the policy's other main provision will: Fannie Mae plans to take legal action against borrowers who strategically default. The secondary-mortgage giant will seek deficiency judgments to recover the outstanding balance of those loans.

Discuss policy with Commissioner Todd Staples
Texas Agriculture Commissioner Todd Staples, a longtime Texas REALTOR®, invites you to join him for a Tele-Town Hall meeting. Via toll-free conference call, Commissioner Staples will discuss ideas to strengthen private-property rights, such as enhancing Texans' eminent-domain protections, during next year's legislative session.

The second of three Tele-Town Halls is July 26 at 2 p.m. Call 866/951-1151 and use conference room 5426358. Get details on the third call, Aug. 2 at 1 p.m., as well as instructions on how to use the conference-call system at TexasRealtors.com.

Technology: How to get off a text-message distribution list
Ever participate in a contest by texting a keyword to a specific number ... only to find out you're now on a text-message distribution list? If you're getting regular, unwanted commercial texts from a sender, here's how to get off the list:
  • Reply to the message. Text the word stop to the sender
  • If stop doesn't work, try unsubscribe, quit, end, or cancel
  • Look in your saved text messages for a welcome message from the sender. It may have instructions for unsubscribing
  • Google the sender's five-digit number and the word unsubscribe to find instructions from other users
Now that you know how to get off these lists, there's no reason not to try out the new text-message service from the Texas Association of REALTORS® and TREPAC. (You won't want to unsubscribe, but it's good to know for all those other senders.) Just text TREPAC to 21824.
Posted Friday Jul 23