IDAHO REAL ESTATE COMMISSION CORE 2008

1. IDAHO REAL ESTATE COMMISSION CORE 2008

2. HOT TOPICS Originally Presented by Doug Marfice, Esq.

3. Homeowner’s Exemption • 2008 Exemption applies to 50% of the assessed value of a primary residence (including up to one acre of real property) or $100,938 - whichever is LESS.

4. ASSIGNED AGENCY(Only applies to Limited Dual Agency) • The Broker is the Limited Agent and cannot advocate on behalf of one client over the other, but is still responsible for ensuring the Assigned Agents fulfill their duties to their clients. • Each Assigned Agent works with their individual client to pursue the client’s best interests, including negotiating price.

5. SLOPPY CONTRACTS “Any contract for the sale of land…must be complete, definite, and certain in all its terms.” Lettunich v. Key Bank, 141 Idaho 362 (2005)

6. FAIR HOUSING ON RESERVATIONS “It shall be unlawful, because of race… or national origin to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or attempt to perpetuate, segregating housing patterns or to discourage or obstruct choices in a community, neighborhood, or development.” Federal Regulation Title 24 § 100.70

7. SHORT SALE: A sale of secured real property that produces less money than is owed to the lender. • Must be lender approved • Beware of Phantom Taxes • Note the restrictions of the Mortgage Forgiveness Debt Relief Act of 2007

8. BANKRUPTCY When the lender is unwilling to entertain a proposed short sale, a homeowner may have no alternative left but to seek protection under the U.S. Bankruptcy Code.

9. THE END Please complete your evaluation located at the back of your binder and turn it in with your completed CORE exam. Thank You!

10. Law Update 2008 T.J. Angstman, Esq.

11. Realty Antitrust Cases Bafus et al. v. Aspen Realty, et al. • If competition was not foreclosed, there is no liability under the anti-trust laws (in this set of facts) • Stay tuned for the results of the appeal…..

12. Contracts/Statute of FraudsCallies, et al. v. Charter Builders, Inc., et al. • Listing Agreements with inadequate legal descriptions are unenforceable • Consult with an attorney before trying to create a listing contract on property that is in the process of being subdivided

13. Bach v. Miller • To recover financially for improvements to real property, they must have been made in good faith and with the appearance of title • Fraud ≠ good faith

14. Chapin v. Linden • Statute of Frauds: Agreements for sale of real property are invalid unless the agreements are in writing. • Material terms must be in writing and agreed upon by all parties through a meeting of the minds. • Real estate sale contracts must be in writing!

15. Cannon v. Perry • Parole Evidence Rule: when a contract has been reduced to writing that the parties intend to be a final statement of their agreement, evidence of any prior or contemporaneous agreements or understandings which relate to the same subject matter is NOT admissible to vary, contradict, or enlarge the terms of the written contract. • Make sure all contract terms are clear and unambiguous (it may be advisable to consult an attorney to assist with drafting)

16. Bajrektarevic v. Lighthouse Home Loans, Inc. • A valid contract requires a meeting of the minds as evidenced by proof of mutual intent to contract. • It must be clear and certain in terms and requirements so it can be determined what acts are to be performed and when performance is complete. • Make sure contract terms are clear and unambiguous!

17. Vanderford v. Knudson • The Greifs were not liable to Vanderford because the Greifs were not considered the same borrower as the LLC • Know your parties when filling out blanks on the contract forms (is the buyer or seller married, a corporation, trust, etc.)

18. Brewer v. Washington RSA No. 8 Ltd. Partnership • Co-tenant can only lease his own interest in a property unless remaining co-tenants consent • contract may be voidable • excluded co-tenants may seek fair rental value • excluded co-tenants may seek partition of property • Documents must be signed by true legal owner. Trust = Trustee Business Entity = Authorizes Representative

19. Water RightsJoyce Livestock Company v. United States of America One who has appropriated water and beneficially used it has a right to the use of the water independent of his ownership of the land • A water right does not constitute ownership of the water; it is simply a right to use the water • Water rights pass with the land unless expressly noted otherwise • Consider consulting an attorney on conveyances of property when water rights are involved

20. Bankruptcy/Entrusted FundsTicor Title Company v. Stanion • Title company mistakenly gave seller $36,438.62 that was supposed to go to the bankruptcy trustee. • Title company ended up paying twice • Be careful when disbursing entrusted funds • If someone is in bankruptcy, be extra careful!

21. Boundary by AgreementGriffin v. Anderson Boundary by agreement consists of two elements: • An uncertain or disputed boundary • An express or implied agreement subsequently fixing the boundary DECISION: The fence served as a barrier first and foremost, not to mark the boundary line

22. Downey v. Vavold An agreement, either express or implied, must exist to establish a boundary by agreement. • Do not assume…. • FENCE ≠ BOUNDARY

23. CC&Rs & Condo DeclarationsBirdwood Subdivision Homeowners’ As-sociation, Inc. v. Bulotti Construction Inc. • CCRs did not apply because they were not signed before selling the lots • Questions should be decided in favor of free use of the land • A recorded map is not “set in stone”, and plots of land may be changed or divided after the map is created

24. Thompson v. Ebbert • The garage lease was void because it included only a portion of the unit and therefore violated the Declaration of Condominium. • The encumbrance created by the lease was a continuing violation of the Declaration, so the statute of limitations did not run out.

25. An Update Originally Presented by Miguel Legarreta Director of Public Policy Ada County Association of REALTORS® 2008 Idaho Legislative Session

27. Senate Bill 1251 IREC Education Bill Introduced by IREC and IAR Changes: Shortens the period of time from 5 years to 3 to complete sales associate or broker prelicense education. Retention period of 5 years for a real estate course provider to keep student attendance. Clarifies the IREC’s responsibility to determine whether a continuing education course fits within the Commission’s approved topics.

28. Senate Bill 1257 IREC Housekeeping Bill Introduced by IREC Changes: Sets forth the Commission’s certification fees for real estate instructors, providers and courses. Date change to update the definition of the Real Estate Settlement Procedures Act, or RESPA. Adds a definition of “business day”

29. House Bill 417 & 465 Transitional Housing in Idaho Introduced by Representative Lynn Luker Changes: Limit of two paroled sex offenders in a residence Allow local jurisdictions more control over locations of sex offender housing. Each jurisdiction will have allow for their own conditional use permit.

30. House Bill 578 Community Infrastructure Districts Introduced by a real estate coalition Changes: Allow local communities to plan and pay for growth Additional tool to build critical infrastructure in our local economies Creates independent taxing district Noted on a Special Assessment Disclosure Notice

31. House Bill 491a Deeds of Trust Introduced by the Idaho Association of REALTORS® Changes: Expand financing ability on a deed of trust from 40 to 80 acres on a non-farm property. Allows additional financing capability on larger land parcels

32. Senate Bill 1401 Confidential Real Estate Information Introduced by the Idaho Association of REALTORS® Changes: Makes clear sales prices are not confidential client information.

33. Senate Bill 1431 Foreclosures Changes: This legislation provides that all contracts entered into while a residential home is in the foreclosure process must be in writing and that consumers have a five day right of rescission. A warning for consumers about foreclosure rescue scams is included in foreclosure notification papers and in any written contract.

34. House Bill 599 Personal Property Tax Exemption Introduced by IACI and business coalition Changes: Phase out personal property tax when State revenue reaches 5% Maximum of $100,000 deduction. Phase out additional business tax. Still requires filing personal property tax forms.

35. Conclusion In the 2008 legislature the real estate industry was affected by changed educational standards, disclosure of sales price information, location of transitional housing, new taxing districts, and personal property taxes.