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Member Updates
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September is REALTOR® Safety Month!
September is REALTOR® Safety Month, and Washington REALTORS® is teaming up with the NAR to ensure you're properly educated and using the safety resources available to you through your membership all year long! The goal of NAR's REALTOR® Safety Program is to reduce the number of safety incidents that occur, so every REALTOR® comes home safely to their family every night.
We will accomplish this goal together by talking about safety; creating a safety plan & following it; and encouraging your fellow REALTORS® to do the same!
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Safety Month Resources →
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HAVE QUESTIONS ABOUT LAST WEEK'S LEGAL HOTLINE Q&A?
You're Not Alone!
In last week’s Legal Hotline Q&A, we discussed the nuances and possible pitfalls for listing brokers when dealing with offers where the buyer broker failed to include compensation in Form 21, Section 17(b). In this week’s Q&A (see section below), we continue the conversation by diving deeper into what listing brokers should do when faced with an offer that neglects the provision regarding buyer broker compensation. As Annie Fitzsimmons, our Legal Hotline Attorney, explains, this situation is occurring too often and listing brokers across the state are encountering this challenge. The latest Q&A offers a more comprehensive explanation of the correct course of action, emphasizing that while mistakes happen, listing broker actions must be guided by Agency Law duties. We encourage all brokers to review these Q&As, as they serve as an important reminder that even seasoned professionals must stay vigilant when navigating change in our industry!
As always, if you have further questions, members can reach out through The Legal Hotline here.
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Trends in Housing Affordability: Who Can Currently Afford to Buy a Home?
Explore the latest trends in housing affordability and discover who can still afford to buy a home in today’s market with this article by NAR's Senior Economist & Director of Real Estate Research, Nadia Evangelou.
Nadia discusses the impact of rising mortgage rates and the growing gap between income levels and housing costs. Read more to learn how these factors have made homeownership increasingly out of reach for many, and what recent improvements might mean for the future.
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Read More→
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REGISTER BEFORE SEPT. 9TH!
Fall Business Conference is Almost Here!
You're invited to join us in Kennewick at the Three Rivers Convention Center September 18th – 20th, 2024! Our annual Fall Business Conference event brings together 250+ passionate REALTORS® from all corners of our stunning state to shape the future of the association, set new directions, and drive success. Network, participate in leadership elections, and take part in engaging discussions like the Member Forum that will elevate WR and your real estate career to new heights!
FUN NIGHT DETAILS:
Pack a little fun into your conference experience and join us for a Havana Night hosted by the Tri-City Association of REALTORS® on Thursday, September 19th, at the Toyota Center in Kennewick! Enjoy local talent and a fun & lively atmosphere. Tickets are $75 and sold separately—register online by Friday, September 13th, as no tickets will be sold at the door. Be sure to bring your confirmation email for entry. For more details, contact Belinda Huntsman at belinda@realtoramc.com.
Fun Night Cancellation Policy: Due to financial obligations with vendors, refunds will not be offered for any cancellations.
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Fun Night Registration→
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Conference Registration & Details →
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WHY WAIT?
Let's Talk About the Code of Ethics
It's already September (if you can believe it) - which means you only have a few more months to complete your COE training for this cycle!
Visit our COE Training page to confirm your COE status, read FAQs, register for NAR's complimentary course for all members, or plan ahead with our in-person and virtual class calendar! Have questions? Email us at educationservices@warealtor.org, we're here to help.
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Learn More→
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Did You Know?
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Your Membership Gets You Discounted Rates Through SoFi
That's right! REALTOR® members have access to exclusive financial tools through SoFi, a member benefit offering special rates on mortgages, student loans, and more! Empower your clients with these resources to help them achieve their financial goals. Read more to discover how you can leverage these benefits to build a stronger financial future!
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Learn More→
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Legal Hotline Q&A of the Week
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Question
We are representing the Seller and a different firm is representing the Buyer. The Buyer's Agent completed section 17a correctly, showing that our Seller has a published offer of compensation to the Buyer's firm of X% of the sales price. In section 17b, however, the Buyer's Agent left the field blank. Again, the sale has been signed around by all parties, so it's my understanding that seller is now not obligated to pay compensation to the Buyer's firm. I would also think that it is our responsibility to explain the Seller's options. 1) that they are not obligated to pay the Buyer's firm commission, or 2) amending the agreement to allow the Buyer's Agent to disclose the amount of their Buyer's Agency agreement at the time of offer and letting the Seller decide if they are ok with paying such amount or not. Let's say, for example, that the Buyer's Broker had a Buyer's Agency Agreement for Y% (something less than X%) of the purchase price at the time of offer. After explaining all of the Seller's options, let's also say that the Seller is good with paying a Y% of the PP compensation rate to the Buyer's firm because they don't want to upset the Buyer/Buyer's Agent to the point of potentially losing the sale, and because this is less than what they thought they were paying? If so, is it just a matter of correcting section 17b with the Y% of PP amount and initials/dates of all parties? Also, should we suggest to the Seller that we wait until the home inspection contingency is satisfied before bringing this to the attention of the Buyer?
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Answer
Broker is correct that based on the mutually agreed PSA, seller owes zero compensation to buyer broker. As it stands, whatever compensation is owed to buyer broker, by buyer, will have to be paid buyer. Seller has no obligation to pay any compensation to buyer broker in this fully executed contract. Broker is also correct that it is likely that BB erred in leaving paragraph 17(b) blank. It is possible that buyer intends to pay BB's compensation and that is why nothing was written into 17(b) but if that were the intention, then it is more likely that "0" would have been written into the blank rather than that the blank would have been left, blank. Because of that, it is reasonable to conclude that sometime between now and closing, BB is going to realize BB's error and a problem may arise in the transaction.
How seller wants to address the potential for a problem should originate with a conversation between LB and seller. Neither LB nor the Hotline lawyer should guess as to what seller will want to do in this case. As broker presents, there are competing options for seller. Seller could do nothing and take the risk of having to address the problem later (including potentially losing the sale during the inspection process) in exchange for the potential reward of paying zero BB compensation. Seller could instruct LB to have a conversation with BB now, to determine if an amount of BB compensation acceptable to seller can be included in 17(b). Seller can wait for the buyer to conduct buyer's inspection leaving the buyer even further invested in completing the purchase (assuming the inspection goes well) and raise the issue during negotiations over inspection issues. And there are certainly many other approaches that LB and seller could consider. LB and seller should discuss all of the options that LB thinks LB should raise in discussion with seller and allow seller to instruct LB as to how to proceed. LB did the right thing by not unilaterally choosing to reach out to BB to bring the error to BB's attention. This is absolutely a problem that seller gets to chart any potential course for resolving. Listing broker's job is to bring the potential problem to seller's attention, along with suggestions and advice for resolution, and allow seller to make the strategic decision of how to proceed.
If seller and buyer choose to modify the existing purchase agreement to include an obligation on seller to pay BB compensation, the best form to use, at this point in the transaction, is a Form 34. Because the PSA is already fully executed, making a change to the face of Form 21 has a greater likelihood of creating confusion. Use of a Form 34 to "amend" the existing PSA creates a more easily understood contract.
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Printable PDF →
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The Legal Hotline Lawyer does not represent Washington REALTORS® or its members. The advice contained herein does not constitute legal counsel. To browse through our database of past Q & A’s, visit warealtor.org/legal-hotline. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. This is a WR members-only benefit so you will be prompted to log in with your M1 number and password. Your Designated Broker is cc’d on Legal Hotline inquiries.
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EDUCATION OPPORTUNITIES
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Complete Your Code of Ethics Education Before Dec. 31st!
Current Cycle: January 1, 2022 to December 31, 2024
As required for REALTOR® membership, all REALTORS® must complete at least 2.5 hours of ethics training that meets specific learning objectives and criteria. The current cycle deadline is Dec. 31, 2024. Why wait? Check your status and view training options today.
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Learn More→
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Wow, It's Hot! Current Legal Topics & Hotline Fun 7.5
Wednesday, September 11th, 2024 (8:30am-4:30pm) 7.5 CE Hours
Hampton Inn, Vancouver WA.
Learn More & Register
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Wow, It's Hot! Current Legal Topics & Hotline Fun 7.5
Thursday, September 12th, 2024 (9:00am-4:00pm) 7.5 CE Hours
Yakima Association of REALTORS Training Room, Yakima, WA.
Learn More & Register
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NAR Code of Ethics - 3.0
Thursday, September 12th, 2024 (9:30am-12:30pm) 3.0 CE Hours
Live Webinar
Learn More & Register
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Adapting to Industry Change
Thursday, September 12th, 2024 (1:00pm-4:00pm) 3.0 CE Hours
Whatcom County Association of REALTORS, Bellingham, WA.
Learn More & Register
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Current Issues in WA Residential Real Estate
Friday, September 13th, 2024 (9:00am-12:00pm) 3.0 CE Hours
Live Webinar
Learn More & Register
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Current Issues in WA Residential Real Estate
Monday, September 16th, 2024 (9:00pm-12:00pm) 3.0 CE Hours
Live Webinar
Learn More & Register
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View All Upcoming Classes...
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