Real Estate School for Success

The 1968 Federal Fair Housing Act allows for some home owners to discriminate in housing under certain conditions. Although the 1968 Act allows for discrimination, the Supreme Court Decision of 1968, Jones v. Mayer states that no one may discriminate in housing based on racial grounds. In other words, one cannot discriminate against race, but can discriminate against other protected classes when certain conditions exist. The Protected Classes covered under the Fair Housing Laws include; race, color, sex, religion, national origin, handicap, or familial status.

Exemptions from Fair Housing Laws include:

A. Any Single-Family dwelling sold or rented by owner under the following conditions:
1) Cannot own more than three single-family dwellings at any one time.
2) Must currently reside in the dwelling or be the most previous resident of the dwelling.
3) Cannot use the services of a Real Estate Agent or Company for any reason/manner.
4) Cannot publish or advertise in a way to violate the Act.

B. Rental of Rooms or units.
Rental of rooms or units that are occupied by no more than four family units if the owner actually maintains and occupies one of the units as his/her residence. An example of this could be for a female wishing to rent a room in her house and does not desire to rent to a male. Thus, it would be legal to discriminate against sex.

C. Religious or Church Related Non-Profit Organizations.
Religious organizations may restrict the use of property owned by the organization by only allowing members of that religion to occupy the property. However, religious organizations may not discriminate against who can be a member of the organization.

D. Private Clubs.
Private clubs providing lodging which it owns or operates for other than a commercial purpose, may limit rental or occupancy to its members and give preference to its members.

None of the above mentioned exemptions apply to Real Estate Agents or Real Estate Companies. Those that meet the requirements above can discriminate so long as they do not use the services of Real Estate Agents in any capacity. Real Estate Agents and Companies will face significant fines and penalties for violating Fair Housing Laws.

Those penalties will include:

Real Estate Companies

1) First Offense - $10,000
2) Second Offense - $25,000 (if within five years of first)
3) Third Offense - $50,000 (if within seven years of first)

Individual Agents

Same as above, but time limitations do not apply.

Fair Housing Complaints can be filed at the State or Federal Level. Complaints filed at the Federal level must be filed with HUD within one year from the time of discrimination. HUD will attempt to mediate and reconcile the differences out of court. Should this not be possible, the complainant will have up to two years to file action in court. Complaints filed at the State level must be filed with the South Carolina Human Affairs Commission (SCHAC) within six months from time of the discrimination. The SCHAC will attempt to reconcile the differences out of court. If this is not possible, the complainant will have up to one year to file action in court.

Procedures for filing a complaint with the SC Human Affairs Commission (SCHAC):

1) Must file complaint in writing within six months of the alleged incident.
2) Upon receipt of complaint, the SCHAC will give notice to all parties.
3) SCHAC must initiate the investigation within 30 days and complete the investigation within 100 days.
4) SCHAC will attempt to resolve the matter by conciliation.
5) Complainant may elect to seek relief through the courts within one year from the date of the alleged discriminatory housing practice.

Dual agency exists when the same Broker-in-charge is representing the buyer and the seller in the same transaction. Note that I said Broker-in-charge, not a real estate agent. You may find that one real estate agent is representing the seller and another real estate agent is representing the buyer, but, if both real estate agents work for the same broker-in-charge, it will be a dual agency transaction. Dual agency is legal in South Carolina as long as there is informed and written consent from all parties prior to entering into negotiations.

The critical aspect of dual agency that must be understood is that the broker-in-charge owes both buyer and seller the same fiduciary duties consisting of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. Except under dual agency, some of these duties are limited. The duties that will be limited included loyalty, obedience and disclosure. Although some duties are limited, they are limited to both the buyer and seller. In essence, both buyer and seller will receive the same amount of representation as the other. The key duty that will never be limited to either party is confidentiality. For example, the agent may know the seller is willing to take less than the listing price, but the agent cannot tell the buyer client. Or the agent may know the buyer client may be willing to pay more than the offered price, but the agent cannot tell the seller client.

In January 2005, South Carolina passed a law making DESIGNATED AGENCY legal. This is a new option available to real estate consumers if they are not comfortable with Dual Agency. In the cases where one real estate agent would be representing both the buyer and the seller, occasionally one or both parties may not be comfortable with the situation. The party uncomfortable with this situation can request designated agency. By doing so, the Broker-in-charge will designate another real estate agent from within the office to represent the buyer while the original real estate agent will continue to represent the seller. This way, both the buyer and seller will have exclusive representation by their own real estate agent. Although designated agency is still a form of dual agency since the Broker-in-charge is still representing buyer and seller, it does allow for exclusive representation for the buyer and seller. Real estate agents are prohibited by law to discuss confidential information among each other. So buyers and sellers will have their confidential information protected.

Are you interested in getting your SC real estate license or broker license? Learn how to get started in a Career in Real Estate today.

Many real estate agents and home buyers or sellers do not know the difference between a REALTOR® and a Real Estate Agent. They are often used interchangeably and that is not correct. There are differences between the two. You often see real estate agents that are not REALTORS® using the trademark. This goes to show how this important trademark goes unseen. Let’s start as real estate agents understanding the importance of being REALTORS® versus being a real estate agent. We need to let our clients know that we truly are working for their best interest. To become a REALTOR®, one must join the National Association of REALTORS®. You may view the code of Ethics by clicking on the following link:

Code of Ethics

REALTORS® are held to a Code of Ethics that real estate agents are not. Being a REALTOR® proves to the public that you are a professional. The more we understand the importance of becoming a REALTOR®, the better we can educate the public on the professionalism that most think real estate agents lack.
The local Association of REALTORS® is the Greater Columbia Association of REALTORS®. Their mission: “Our mission is to be the organization in the Midlands that represents the standard for the real estate sales professional through the organization’s Code of Ethics, educational offerings, information systems and involvement in local government issues.” You can read more about the association by clicking on the link below:

Great Columbia Association of Realtors

Mortgage Fraud

Predatory Lending all across the country seems to be a big concern. This concern comes from the Sub Prime lending when it became the American Trend. Predatory lending is the practice of using a borrower’s ignorance against them for profit. It is an assertive practice for some lenders in the sub prime market.
A sub-prime lender is one who lends to borrowers who do not qualify for loans from mainstream lenders. Some are independent, but increasingly they are affiliates of mainstream lenders operating under different names. Borrowers who may apply for a Sub-prime may be someone wit a low credit score. Borrowers are being deceived by making them believe that their credit is not as good as it actually is.
Predatory lending can be identified by deceptive marketing and sales practices, non-disclosure of all terms that relate to the qualification and payback of the loan, and falsifying documentation to gain otherwise unattainable loan approvals, although the actual term is an umbrella to numerous specific scenarios.

See more details by clicking below:

What is Sub- Prime Mortgage Lender?

As defined by Internet Crusade and the National association of Realtors “An e-PRO is a REALTOR® who has successfully completed the e-PRO training program for real estate professionals. Endorsed by the National Association of REALTORS®, the e-PRO course teaches professionals the nuts and bolts of working with real estate on-line: Web sites, e-mail, on-line tools, and most of all, what today’s consumer really wants.”

The e-PRO Certification Course is an educational program unlike any other professional certification or designation course available, comprehensive and Interactive. It is sponsored by the NATIONAL ASSOCIATION of REALTORS® and is specifically designed to help real estate professionals thrive in the competitive world of online real estate. The e-PRO course certifies Realtors to become Internet Professionals.

The Real Estate School for Success will be sponsoring a free e-PRO workshop, where you can learn more about earning the e-PRO designation.

In today’s fast-paced world of real estate, you need to become an Internet professional with REALTOR e-PRO®…the only technology certification program offered by the National Association of REALTORS®.

Attend the upcoming FREE e-PRO Workshop to learn invaluable tech tips and how
e-PRO will benefit you, plus receive a $30 discount for your e-PRO course enrollment!

Time: 9:00am to 10:30am
Date: Wednesday, November 29, 2006
Location: 121 Executive Center Drive, Ste 100 (Congaree Building)
Columbia, SC 29210

Register Now! Seating is Limited!

To register, simply visit http://ePROworkshop.InternetCrusade.com
or call toll free 1-866-ePRONAR (1-866-377-6627)

Designations in Real Estate are so often overlooked. Education can make all the difference the world. Knowledge is everything!! If you want to succeed in the world of real estate, you need to continue to educate yourself. Designations will help you increase your skills, knowledge, and productivity. There are several designations that are available to all Realtors. Here are several designations that are available for you to further your knowledge in real estate:

ABR -Accredited Buyer Representative

The Accredited Buyer Represenative is the largest Association of Real Estate Professionals. This designation focuses on all aspects of Buyer Representation.

ABRM – Accredited Buyer Representative Manager

The Accredited Buyer Representative manager designation is geared toward brokers, owners, and managers who wish to incorporate buyer representation.

CRS – Certified Residential Specialist

The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field. The CRS Designation recognizes professional accomplishments in both experience and education.

e-PRO – e-PRO Internet Professional

The e-PRO Certification Course is an educational program unlike any other professional certification or designation course available, comprehensive and Interactive. It is sponsored by the NATIONAL ASSOCIATION of REALTORS® and is specifically designed to help real estate professionals thrive in the competitive world of online real estate.

GRI – Graduated Institute Realtor

The GRI designation is considered the nation’s number one real estate designation. This designation is available only to members of the local, state and National Association of REALTORS®.GRI is recognized nationwide as the standard for real estate professionalism and knowledge.

CBR – Certified Buyer Representative

CBR® is the first nationally recognized buyer agency designation. The course is sponsored by REALTOR® Boards and Associations throughout the United States. REALTORS® with the CBR designation have the street skills necessary to both help buyers find their desired property and to help them negotiate for that property in a non-adversarial manner.

Over the next few months, look for these designations to be discussed in more detail. We will go over what each designation is and why it is important to you as a Realtor.

Rural Development Loans are 100% loans that require no down payment. Seller
may pay the homebuyer’s closing costs and prepaids, which lowers the total
cash required from the home buyer’s own funds for the purchase of their new
home. Homebuyer may also borrow up to the appraised value of the home.
This program may allow buyers have credit issues with good explanation.
Rural Development Loans are 30 year fixed rate loans with no monthly
mortgage insurance premium to pay and have rates close to conforming rates.
Many homes are in areas that you might not think of as being “rural” and
qualify for Rural Development Loans.

This information is provided to you by 1st Choice Mortgage. You may Contact them
today to see if the home you or your customer is preparing to
purchase qualifies for a Rural Development Loan. The 1st Choice Mortgage
Government Loan Processing Program has more than twenty years’ experience in
Rural Development loans. Contact Michael Meeks with 1st Choice Mortgage at
803-528-4097 for more information on this program. Visit their website at
http://www.1choicemortgage.

Appraiser Licensure Changes

Summary of the 2008 Real Property Appraiser Qualification Criteria

The Real Property Appraiser Qualification Criteria was revised in February of 2004. However, the revisions will not be implemented until January 1, 2008. That is almost four years later. The reason for the delayed implementation is due to the possible impact it could have on regulators and education providers. In this article, we will discuss all the changes that will be implemented.

Education

The biggest change with the new 2008 Criteria is the amount of education. There are now college level course requirements to become a Certified Residential and Certified General Appraiser. The classroom hours for all three levels of appraiser licensure have increased significantly, and there are specific topic areas that have a minimum number of classroom hours that must be covered.

College Course Requirements

In the past, there were no requirements to have a college education to become an appraiser. For the first time, there are college level course requirements for certified classifications. Below you will find the college education required for each classification:

Certified Residential: You can meet the college requirements in one of two ways for this type of Appraiser:
1. Associate degree or higher in any field of study

OR
2. Twenty – One semester credit hours covering the following subjects: English Composition, Principles of economics(Micro or Macro), Finance, Algebra, Geometry or higher mathematics, statistics, Introduction to computers: word processing/spreadsheets, and business or Real Estate Law

Certified General: You can meet the college requirements in one of two ways for this type of Appraiser:
1. Bachelors degree of higher in any field of study

OR
2. Thirty semester credit hours in the following subject: English Composition, Principles of Economics (micro or macro), Finance, Algebra, Geometry or higher mathematics, statistics, introduction to computers: Word Processing/Spreadsheets, and Business or Real Estate Law.

Classroom Hours

The classroom hours for licensure have increased for all three classifications. The Trainee (Appraiser Apprentice) reamins unchanged at 75 hours. The State Licensed appraiser has increased from 90 hours to 150 hours. The State Certified Residential appraiser has increased from 120 hours to 200 hours. The State Certified General appraiser has increased from 180 hours to 300 hours.

Required Core Curriculum

At the present time, individuals seeking to become an appraiser may select courses covering material in topic areas approved by the SC Real Estate Appraisers Board in the licensing or certification categories designated as L-1, L-2, L-3, CR, C-1, C-2, or C-3 Level Courses. Because not all states subscribed to this “grid level” system of organizing suitable content topic areas there has been considerable inconsistencies in the education received by appraisers holding similar credentials in other jurisdictions. The emphasis in other states has been on the total number of classroom hours, rather than on the amount of coverage in specific topics.

The AQB has now created a Required Core Curriculum for each appraiser classification. Examples of Required Core Curriculum modules include Basic Appraisal Principles, Basic Appraisal Procedures, Residential Market Analysis and Highest and Best Use, and the National USPAP Course. Accompanying the listing of modules is the specific number of classroom hours for each module. It is important to note that these modules are subject matter areas and not necessarily the names of courses. The AQB has issued information in the form of a publication to assist in understanding the expected content coverage under each module. The publication is entitled, A Guide For Understanding The 2008 Real Property Appraiser Qualification Criteria, and can be obtained at The Appraisal Foundation website:

www.appraisalfoundation.org

Now, there is a certain amount of core curriculum that is required for each classification. These core curriculums are referred to as modules. Examples of these modules are Basic Appraisal Principles, Basic Appraisal Procedures, Residential Market Analysis and highest and best use, and the National USPAP Course.

Experience

The only change with the experience that a licensed Residential Real Property Appraiser must have is that instead of just having to complete 2000 hours, it must be completed within12 months.

The South Carolina Real Estate Appraisers Board has adopted the “Segmented Scenario” in implementing the Criteria Changes. Segmented Scenario The requirements are broken down into three segments (or components): Education, Experience, and Examination. An applicant would have to meet the Criteria in effect at the time he or she completes a particular component or segment. Any component completed prior to January 1, 2008, would satisfy the current Criteria, while any component not completed by January 1, 2008, would have to conform to the new Criteria. For example, an applicant for a Certified General designation completes all of the currently required 180 hours of qualifying education and passes the State Certified General examination in 2007, but does not possess the required 30 months and 3,000 hours of experience. Since the applicant completed the education and examination prior to January 1, 2008, he or she would be deemed to have satisfied those two components. Therefore, the only component which the applicant would have to satisfy under the new Criteria would be experience (which, in this case, is no different than the current Criteria).

Please Note: The question that has been raised on several occasions as to the affect the new Criteria will have on current licensed and certified appraisers in South Carolina . As long as licensed and certified appraisers maintain their current credential, the Criteria changes should not have any effect on these appraisers. Those impacted will be:

1. Individuals entering the profession;

2. Individuals seeking a different credential within South Carolina ;

3. Possibly those seeking a credential in another jurisdiction through reciprocity.

With Tax Season rapidly winding to a close, we thought a reminder about some of the tax regulations affecting real estate agents would be appropriate. Enclosed you will find topics regarding the forms you will use to file your net profit or loss, common items you can expense, and limits you can claim to reduce your tax liability.

Self-employed individuals need to report their business income and expenses separately from their other income on a Schedule C, Profit or Loss from a business. On the Schedule C, net profit is subject to income tax as well as self employment tax. The profit or loss of your business is added to or subtracted from other income or losses on your form 1040 to compute your Adjusted Gross Income (AGI). The Schedule C is where you will deduct allowable business expenses from your business income.

As a realtor, one of the major expenses you can deduct is the business use of your car. You may deduct either the standard mileage rate or actual expenses for the amount of business use. Standard mileage is a flat rate of 40.5 cents a mile for use up to 8/31/2005 and 48.5 cents a mile after that. If you don’t use the standard mileage rate you may be able to take actual expenses including depreciation, insurance, lease payments, registration, repairs, tires, garage rental, gas, oil, and licenses. The depreciation and Section 179 deduction, which allows you to take all or a portion of the business cost of a qualifying vehicle in one year as opposed to depreciating over multiple years, is limited based on vehicle type and business use percentages.

For new or returning clients you may choose to offer new home or closing gifts. Please note that for each client, you may deduct up to $25 per client per year for these gifts, not to exceed the actual value of the gift.

Business and entertainment expenses are deductible as well. Travel away from home for business, conventions, or receptions are deductible expenses. Entertaining customers at restaurants or clubs are deductible on your schedule c as well. Good recordkeeping is critical to claim these expenses including who the parties were and purpose of the expense. These are not noted on your return but are needed for any audit purposes.

For the self-employed, you are also entitled to a health insurance deduction. For 2005, this deduction is 100% of the amount paid for medical and qualified long-term care insurance for you and your family in a plan established under your business.

This information is provided to you by Liberty Tax Service, the nation’s 3rd largest tax preparation expert. For questions or assistance with your returns, please call 866-871-1040 which will ring the office nearest you. Free mileage books for your driving records and pamphlets for your clients outlining “The Tax Guide for Home Buying” are available free of charge at (803) 865-3334. Realtors responding to this article at (803)865-3334 will receive an added benefit of having their returns prepared for them at 40% off when they reference this article from the Real Estate School

The cost of starting your real estate business can vary greatly between new real estate agents for all kinds of reasons. However, this is an excellent question and deserves some attention. Let me begin by saying we must break down this question into two parts. One, the cost involved in meeting the state mandated requirements to receive a real estate license, and two, the cost involved to become successful in the Real Estate Profession.

Let’s first list the minimum requirements to meet the state mandated requirements. The state of South Carolina requires those desiring a real estate license to complete a 60 hour course called First Year Sales. You must complete this course in an approved classroom setting. South Carolina does not allow for you to take this course on-line. The cost of this course is $350 which includes all necessary materials.

Upon completion of the First Year Sales course, you will submit your course certificate and application to the Real Estate Commission. There will be a $35 application fee with the Commission.

The next step will be to take the state exam. The cost of the state exam is $63.

Once you complete the state exam, you will receive a provisional real estate license which is good for one year. Sometime within a year of receiving your provisional license, the state also requires you complete a 30 hour post licensing course. The cost of this course is $299 and upon completion, you will receive your permanent real estate license. There is not a state exam after this post licensing course.

At this point, you will have spent $747 over the period of one year. Prices for state mandated courses are the costs at the Real Estate School for Success. The one aspect not included in the costs listed above is the discounts our students receive. After you have completed one course at our school, you are now considered an alumnus and will always receive at least a 10% discount on all state mandated courses.

Other costs associated with getting your real estate license will vary depending on the Real Estate Brokerage Company you decide to hang your license with and the degree of marketing you decide on. Although the costs will vary, I will talk about some costs you may expect to incur.

Errors and Omissions Insurance will run you about $300/yr. There are some Brokerage companies that will cover this or at least some portion of this for you. If you are not with a company that will pay your E & O insurance, you should shop around with insurance companies. E & O insurance is to protect you as an agent from honest mistakes that affect your clients who suffer from some sort of financial damage.
Professional Photograph $75.00
High Quality Business Cards (1000) $99.95
Name Riders (five riders), which are used to market your name and number on the for sale yard signs. $ 72
Name Badge $ 20
These costs are considered marketing tools and reflect the actual cost as
provided by the marketing division of the real estate school for success.

GCAR Membership
($345 annually + $60 application fee) $405
CMLS Access ($121 per quarter) $121
CMLS Lockbox Key Pad
($100 deposit + $40 annual lease $140
The cost of the Multiple Listing Service is the price for the Columbia based Consolidated Multiple Listing Service, also referred to as the CMLS. Other areas around the state will vary.

Should you have any questions regarding real estate costs or any other real estate questions, please send us an email or give us a call and we will be glad to answer your question in detail.

With today’s real estate information update, I’m Stacey Starnes, Realtor and owner of the Real Estate School for Success. Have a wonderful day!