IREC'S
PROPOSED RULES CHANGES
Much of a licensee's responsibility in the license law
area is determined by the rules promulgated, from time
to time, by the Indiana Real Estate Commission (IREC)
in addition to statutory law. We encourage you to read
in their entirety IREC's latest proposed rules (posted
for you at Indianarealtors.com)
prior to the effective date anticipated to be late summer
or fall of this year. Some of the proposed changes are
as follows:
Disposition
of Earnest Money
There
is a proposed change as it relates to the disposition
of earnest money held by the listing or selling principal
broker. After a transaction is not consummated, the principal
broker holding the earnest money (usually by custom) may
release the earnest money to the party as provided in
the purchase agreement, if applicable. If no provision
is made in the purchase agreement for the release of the
earnest money, the principal broker holding the earnest
money may initiate the "release process."
The
"release process" consists of the principal
broker holding the earnest money to notify all parties
at their last known address by certified letter as to
the disposition of the earnest money. The letter will
state that the earnest money will be release as specified
in the letter unless a mutual release is executed or one
or more of the parties initiate litigation to claim the
money within sixty(60)days of the mailing date of the
certified letter/notice. The proposed section also indicates
that if no release is executed or litigation initiated,
then the earnest money will be released as specified in
the certified letter without penalty and civil liability
to the principal broker holding such earnest money.
Seller's
Residential Real Estate Sales Disclosure Form
There
are several proposed changes to the form. Under both the
"appliances" and "heating and cooling"
sections, IREC is proposing to add the term "other"
so that the items can be added and addressed even though
not specifically listed in those sections. Under the "water
and sewer" section, IREC is proposing to ask if there
are "any additions that may require improvements
to the sewage disposal system" as required due to
the passage of Senate Bill 79 this legislative session.
They are changing the term "roofs" to "layers"
in order to address consumer confusion in the roof area
in relation to the number of "layers."
Under
"hazardous conditions," IREC is proposing to
ask about prior hazardous conditions on the property in
addition to existing hazardous conditions. It is in this
section that you will also see the new item "mold
and other biological contaminants" added to the list
of hazards. In addition to asking about moisture and/or
water problems in the basement or crawl space area, IREC
is proposing to extend this disclosure to "any other
area" that may have moisture and/or water problems.
This appears to be another place on the form for mod to
be addressed by a property owner. Under no circumstances
should an agent or broker indicate how mold is to be addressed
on a disclosure form, as this should be the owners' representation
about their own property.
With
regard to past disclosures, IREC is also proposing to
ask if "any improvements have been treated for wood
destroying insects" in addition to currently asking
about any damage due to "wind, flood, terminates
or rodents." Apparently, there have been "treatment"
issues that have not been adequately addressed for consumers
in some circumstances.
Last
in the disclosure area, and my personal favorite, IREC
is proposing to ask if the "homeowner is a licensed
real estate salesperson or broker" in lieu of the
term "seller", as this currently causes considerable
consumer confusion.
Distance
Education
There
is a new section that will establish distance learning
continuation education requirements and procedures for
licensees and providers. This proposed section includes
distance learning through correspondence, video instruction
and Internet continuing education. Most notably, a licensee/student
may take more than eight (8) hours of distance instruction
in one day and will be required to take a test and score
at least 75% to pass and receive continuation credit for
the class.
Please
contact IAR Legal Affairs Department (1-800-284-0084)
or any Indiana Real Estate Commissioner with your concerns
or comments about the proposed rules.
Reprinted
from Indiana REALTOR® May 2002 issue
WHAT'S
YOUR DESIGNATION?
The
National Association of REALTORS® has nine affiliated
institutes, Societies, and Councils that provide a wide-ranging
menu of programs and services that assist members in increasing
skills, productivity and knowledge. Designations acknowledging
experience and expertise in various real estate sectors
are awarded by each Affiliated group upon completion of
required courses. In addition, NAR offers two certification
programs to its members. We will be running a series of
designations in our newsletter to help you become more
familiar with what is available. The spotlight for this
month will focus on ABRM and CRS.
ABRM
- Accredited Buyer Representative Manager
ABRM,
Accredited Buyer Representative ManagerGeared to real
estate firm brokers, owners and manager that have or wish
to incorporate buyer representation into their daily practice,
designees have taken and passed both the ABR and ABRMSM
course and provided documentation of past management experience.
If interested in this designation, call REBAC (Real Estate
Buyer's Agent Council) Customer Service at 1-800-648-6224,
email to rebac@realtors.org,
or visit their web page at http://www.homebuyerrep.com
.
CRS
- Certified Residential Specialist
CRS,
Certified Residential Specialist agents can maximize their
potential by earning the CRS Designation and joining the
organization that has served the country's top-producing
agents since 1977. CRS Designees benefit from nationwide
referral opportunities, a professional image that attracts
customers, and sales and marketing support. The CRS Designation
is awarded to experienced REALTORS® who complete advanced
training in listing and selling. If interested in this
designation, contact REALTORS® National Marketing
Institute Council of Residential Specialists at 1-800-462-8841,
visit their website at http://www.crs.com,
or call fax-on-demand at 1-402-351-9935 and request Document
#7.
