Huh? I’m Confused…

 Posted by at 6:49 am
Jan 202014
 

Confused girlOne section of the Maine Real Estate Brokerage Act (Title 32, Chapter 114) that causes confusion in almost every class is  §13251-A, Conflict of Interest.

“A real estate broker or associate broker may not knowingly provide or offer an appraisal or opinion of market value, as set forth in section 14004, on real estate in a transaction where the broker or associate broker, or any other licensee licensed with the agency, is to receive a fee on that transaction.”

On first glance it would appear this prevents a licensee from completing an opinion of market value for listing clients since the licensee clearly expects to receive a fee (commission) when the property is sold.

In order to fully understand §13251, one must look at the body of the law including §14004 as applies to appraisers and be clear on client relationships. The intent of this law is prevent a licensee from completing an opinion of value for compensation on a property that is under contract within the company—the important words here are “on that transaction.” The best example of when this would apply is a short sale. Let’s assume that the listing agent works for our company and a buyer’s agent presents an offer that would make the transaction a short sale. In this example, the lender might well hire another licensee to complete a BPO to help them decide whether or not to agree to the short sale price. §13251 would prevent a licensee within our company from completing that BPO (Broker’s Price Opinion).

You can perhaps see how this could/would become a conflict of interest since our company will receive a fee if and when the transaction closes. The licensee performing that BPO would be working for the lender–the lender is neither the buyer or the seller and wants an objective opinion of value absent any influence from either the buyer or the seller or their agents.

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Jan 202014
 

BookCoverImageAbbot, ME – The recently formed company Abbot Village Press has released a handbook of Maine Real Estate Law and Rules designed as a reference and study aid for students taking licensing courses and practicing licensees. The handbook reprints most applicable statues and rules with the added feature of an extensive table of contents that facilitates locating information.

Walter Boomsma, an instructor for the Arthur Gary School of Real Estate, edited and produced the book with the goal of making it “student friendly.” He explains, “The book includes a detailed table of contents that will allow students to locate information quickly. We are also using the capabilities of print-on-demand publishing to produce an actual paperback book. This means no more photocopying and stapling to make a copy that quickly falls apart and gets shabby. This is a book that is easily carried and readily referenced.”

The exact text of all statues and rules has been included with the intent of creating an educational tool more than a legal reference book. Included are MRS Title 32, Chapter 114—the Real Estate Brokerage License Act and the rules adopted by the Maine Real Estate Commission. Additionally, MRS Title 5, Chapter 341 and MRS Title 10, Chapter 901 are included as reference to laws pertaining to all professional licensing in Maine.

The handbook has application to all three licensing courses currently offered in Maine: Sales Agent, Associate Broker, and Designated Broker as well as many continuing education programs. In addition, real estate licensees and companies will find the handbook a handy guide to their daily practice of real estate brokerage in Maine.

Boomsma has been teaching real estate courses for over a decade and is a member of the Real Estate Educators’ Association. He is a licensed broker with Mallett Real Estate in Dover Foxcroft. He writes a blog of “brain leaks and musings” and last year wrote and published “Small People – Big Brains: Stories About Simplicity, Exploration and Wonder.”

The Maine Real Estate Law and Rule Handbook will be distributed through Abbot Village Press, Amazon, and Barnes and Noble. For more information, please visit http://abbotvillagepress.com or contact Boomsma at 207 343-1842.

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Start Counting…

 Posted by at 5:35 am
Jan 022014
 

The long-awaited “Maine Real Estate Law and Rules Handbook” is in the final proofing stages and should be available before the month is over! The official description:

Maine Real Estate Law and Rules Handbook is designed as a reference and study aid for students taking licensing courses and practicing licensees. The handbook reprints most applicable statues and rules with the added feature of an extensive table of contents that facilitates locating information. The exact text of all statues and rules has been included with the intent of creating an educational tool more than a legal reference book. As such, some extraneous references and repealed sections have been eliminated, making the book efficient and “user friendly.”

This Handbook has application to all three licensing courses currently offered in Maine: Sales Agent, Associate Broker, and Designated Broker as well as many continuing education programs. In addition, licensees will find the handbook a handy guide to their daily practice of real estate brokerage in Maine.

Included are MRS Title 32, Chapter 114—the Real Estate Brokerage License Act and the rules adopted by the Maine Real Estate Commission. Additionally, MRS Title 5, Chapter 341 and MRS Title 10, Chapter 901 are included as reference to laws pertaining to all professional licensing in Maine.

My goal is to have it available for purchase from Amazon by the end of January… let’s see if I make it!

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