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Fiduciary Duties When Listing

Fiduciary Duties When Listing. Objectives 1. Define real estate bubble, foreclosure and short sale. 2. Locate Ohio websites to help buyers and sellers. 3. Define “CLUE Report.”. Objectives 4. Identify your fiduciary duties when listing a property.

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Fiduciary Duties When Listing

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  1. Fiduciary Duties When Listing

  2. Objectives1. Define real estate bubble, foreclosure and short sale. 2. Locate Ohio websites to help buyers and sellers. 3. Define “CLUE Report.”

  3. Objectives4. Identify your fiduciary duties when listing a property. 5. Identify Red Flags from the OREC.

  4. Currier & Ives Print 1875

  5. Rapid increases in real property values until they reach unsustainable levelsrelative to incomes and other economic elements.

  6. 2001 The “Housing” began. An agent shared that his property in Floridaappreciated 40% a year for four (4) consecutive years.

  7. Current Market Borrowers negotiated No Money Down Loanswhen home prices were inflated Adjustable Rate Mortgageswithout understanding how much the monthly payment would adjustment

  8. Current Market August 2005The housing bubble burst and the slowdown continues in 2010.

  9. Foreclosure The legal process by which a owner/sof real property loses his or her interest in the property for failing to complywith the terms and conditions of the mortgage.

  10. Foreclosure Where to go for help?

  11. Ohio Division of Real Estate

  12. Click Mortgage Broker Information

  13. Division of Financial Institutions

  14. PDF files at the ODRE website Several are available in Spanish

  15. www.SaveTheDream.Ohio.Gov

  16. Foreclosure If the bank calls you to list a house in foreclosure…

  17. Foreclosure Do NOT… Change locks Clean out the propertyThrow away personal propertyChange utilities OR…

  18. Foreclosure List the property until…the sale has been confirmed.

  19. Safety – Foreclosed PropertiesWhen arriving at a foreclosed property… If the door is open…you may call the police. They will enter the property with you.

  20. Short Sale The lender agrees to acceptless than a full payofffor a property that’s in foreclosure.

  21. Short Sale Be sure to have the contract signed by the person at the lending institutionwho has proper authority. Advise Sellers and Buyers…It will be a long process.

  22. When a seller is NOT involvedin a foreclosure or short sale

  23. Share with them…The “Housing Bubble” BurstThe “Market” has changed!

  24. Create an accurateCMA showing properties that have recently sold

  25. Comprehensive Loss Underwriting Exchange National insurance industry database with more than 40 million personal property claims What is a CLUE Report?

  26. Examines all claims reportedon a property for the last 5 years. Will disclose the damage and amount paid

  27. You may want to recommend that the seller/s purchase a CLUE report on their property.It will answer the question,“Can the buyer get insurance?”

  28. Show them a marketing planfor their property.Show them how you will represent them.

  29. Listing AgreementPersonal Service Contract Employment Contract Creates Agency relationship with the seller

  30. Listing AppointmentAsk the seller/s to see a copy of the deed. (You may want a copy for your files.)

  31. How many signaturesshould be on the listing? Both spouses – Ask is this you?

  32. Competent PartiesProper Power-of-AttorneyMust be able to be recordedMust give authority to sell “real property.” Keep a copy in your files.

  33. Person given authorityin the corporation Anyone in a fiduciary capacityAdministrator ExecutorSheriff

  34. Be sure to provide the seller with a Residential Property Disclosure Form.

  35. Give a copy to the partieswhen they sign Keep a copy of the listing agreementand other documents for 3 years!

  36. ORC 4735.62 Applies to ALL Agents

  37. Fiduciary Duties O L D ObedienceObey lawful instructions of the principal LoyaltyTo act at all times in the best interest of the principal and to put those interestsabove all others, including yourself. DisclosureTo disclose all known, relevant factsto the principal.

  38. Fiduciary Duties C A R ConfidentiallyAnything that would harm the negotiating positions of the principal Accountablefor the money and propertyof others that come into your possession Reasonable care and skill To diligently use real estate skills and knowledgewhen pursing the principal’s affairs

  39. Fiduciary Duties When Listing O - Obedience L - LoyaltyD - Disclosure C - Confidentiality A - Accountable R - Reasonable Care and Diligence

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