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Real estate

The Duty Of Confidentiality In Real Estate 2022

In every Listing Agreement there is a point in time when the agency relationship ends. A Listing Agreement، as it is popularly known, is nothing more than a contract between the legal holder of an interest in land “the Principal” and a duly licensed real estate firm “the “Agent”، whereby the firm determines and accepts to find a purchaser within a specified time who is ready، willing and able to purchase the interest in the land which is the subject of the contract، while acting within the scope of the authority which the Principal gives to the Agent، and where further rather the licensee determines and agrees to pay a commission if the licensee is ever successful in finding such a buyer.

As in all contracts, an element commonly known in law as an “implied covenant of good faith and fair dealing” is implied into a Listing Agreement.

This covenant is a general assumption of the law that the parties to the contract – in this case the titleholder and the licensed real estate firm – will deal fairly with each other and that they will not cause harm to each other. breaking their words. or otherwise breach their respective and mutual contractual obligations, express and implied. Breach of this implied agreement gives rise to liability both in contract law and, depending on the circumstances, in tort.

Due to the special nature of a listing agreement, the courts have long decided that during the term of the agency relationship، a second element is implied in the contract arising from the many duties and responsibilities of the Agent towards the Principal: a. obligation of confidentiality, which obligates an agent acting exclusively for a seller or a buyer, or a dual agent acting for both parties under the provisions of a Limited Dual Agency Agreement, to keep certain information provided confidential by the Director.

As with the implied covenant of good faith and fair dealing, a breach of this duty of confidentiality gives rise to liability both in contract law and، depending on the circumstances، in tort.

Pursuant to a recent decision by the Real Estate Council of British Columbia (http://www.recbc.ca/), the regulatory body mandated to protect the public interest in matters relating to real estate real estate, a question now arises as to whether or not the duty of confidentiality extends beyond the expiration or termination of the Listing Agreement.

In a recent case, the Real Estate Council reprimanded two licensees and a real estate firm for breaching a continuing duty of confidentiality that the Real Estate Council found owed to the seller of a property. In this case the subject property was listed for sale for more than two years. During the period of the Listing Agreement the price of the property was reduced on two occasions. Despite this, the property ultimately did not sell and the listing expired.

After the listing expired, the Seller entered into three separate ‘fee agreements’ with the real estate firm. In all three cases, the Seller declined agency representation and the firm was identified as the ‘Buyer’s Agent’ in these fee agreements. A party commenced legal proceedings against the Seller, which involved the subject property.

Counsel acting for the plaintiff approached the real estate firm and requested that they provide Statements containing information regarding the listing of the property. This attorney made it very clear that if the firm did not voluntarily provide the Statements, he would either call the firm and the licensees as witnesses to testify before the judge, or obtain a court order pursuant to Rules of Court obliging the firm to provide such evidence. The real estate firm, believing it had no other choice in the matter, promptly complied by providing the required Declarations.

As a direct and proximate result, the Seller filed a complaint with the Real Estate Board alleging that the information contained in the Declaration was ‘confidential’ and that the firm had breached a duty of confidentiality owed to the Seller. As it turned out, the Statements were never used in court proceedings.

The real estate brokerage, on the other hand, took the position that any duty of confidentiality arising from the agency relationship ended upon the expiration of the Listing Agreement. The firm argued, further, that even if there were a duty of continuing confidentiality, such a duty would not preclude or otherwise limit the evidence that the real estate brokerage would be compelled to provide pursuant to a subpoena or a process according to Rules of Court. And, finally, the real estate company pointed out that there is no realtor-client privilege and that under the current circumstances the Seller could not have prevented the firm from testifying in the lawsuit.

The Real Estate Board did not accept the line of defense and asserted that there is a continuing duty of confidentiality that extends beyond the expiration of the Listing Agreement. The Council decided that by giving the Declarations, both the mediation and the two licensees had breached this duty.

Attorney client privilege is a legal concept that protects communications between a client and an attorney and keeps those communications confidential. There are limitations to the attorney-client privilege, such as the fact that the privilege protects confidential communication but not underlying information. For example, if a customer has before discloses confidential information to a third party who is not a lawyer, and then gives the same information to a lawyer, the attorney-client privilege will continue to protect the communication with the lawyer, but will not protect the information provided to the third party.

Because of this, an analogy can be drawn in the case of a broker-client privilege during the existence of a Listing Agreement, where confidential information is disclosed to a third party, such as Real Estate Board for publication under the terms of a Multiple Registration Service Agreement, but not before such information is disclosed to the real estate brokerage. In this case, the privilege would theoretically protect the confidential communication as well as the underlying information.

And whether or not the duty of confidentiality extends beyond the termination of a Listing Agreement is still a matter of open debate, again in the case of the attorney-client privilege there is sufficient legal authority to support the position that such a privilege does in fact extend to a indefinitely, so that an analogy can be drawn, as well as respecting the duration of the duty of confidentiality that the Agent owes to the Seller, to the extent that such duty extends indefinitely.

This, in summary, appears to be the position of the Real Estate Council of British Columbia on the matter.

Clearly, whether the duty of confidentiality arising from a Listing Agreement survives the termination of the contract is problematic for the real estate profession in terms of practical applications. If, for example, a listing with Broker A expires and the seller re-lists with Broker B, if there is a continuing duty of confidentiality on the part of Broker A, in the absence of express consent on the part of the seller, a realtor. Brokerage A could not act as the buyer’s agent for the purchase of the seller’s property if it were re-listed by Brokerage B. All, therefore, would run afoul of all real estate professional cooperation rules. firms and their representatives. In fact, this process could potentially destabilize the entire foundation of the Multiple Listing Service system.

In the absence of specific guidance, until this whole matter is clarified, perhaps the best course of action for real estate firms and licensees, when asked by an attorney to provide confidential information, is to respond that the broker will request obtain the necessary consent. by the client and, if that consent is not given, the lawyer will have to take the necessary legal steps to compel the disclosure of such information.

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Real estate

10 Tips For Choosing a Real Estate Agent in 2022

Whether you are buying or selling a property, choosing a real estate agent may be the most important decision you make. Good real estate agents can save you a significant amount of time and money. They can also ensure that the buying or selling process is a pleasant and memorable experience. Here are some tips for choosing a real estate agent:

1. Ask friends/family for referrals:

Ask family and friends for their advice on local agents. This way you will be sure to find an agent with a good reputation.

2. Consider more than one agency:

There are a number of agents that would kill for your business. This is why you should interview as many agents as you can. Compare agents regarding their domain knowledge, experience and qualifications. Also, ask for references from previous clients.

3. Choose an agent who knows the importance of customer care:

As you interview different agents, you will be able to determine their level of customer care or how far they will go to please the customer. Look at things like their attitude toward returning calls and their willingness to meet with you.

4. Choose an agent that handles homes in your price range:

When you choose an agent who deals with homes in your price range, you’ll be sure to end up with an agent who will give his or her best effort. Some agents deal only with high-end properties and are used to high commissions. They are more likely to participate in these properties first.

5. Choose an agent who respects your schedule:

If you won’t be able to view properties during business hours, you should find an agent who is willing to do business after hours or on weekends.

6. Look for an agent you can communicate with:

Communication is vital when buying or selling real estate. Make sure you choose an agent who understands your needs and communicates them well. You will be better off if you choose an agent who registers a high level of comfort with you or with whom you are compatible.

7. Choose an agent that offers multiple services:

It will be a bonus if you can find an agent who can handle the buying/selling process as well as other additional services such as arranging property inspections or who can refer you to a reliable real estate attorney.

8. Choose an agent who can negotiate:

Negotiation skills are an essential quality of a good real estate agent. Be sure to select and broker with impeccable and proven negotiation skills.

9. Choose a multi-source agent:

Ask agents where your property will be advertised. Make sure the agency uses print advertisements (newspapers/magazines) as well as other promotional materials such as brochures. Also check if the agency uses the Internet to advertise their listings.

10. Follow your instinct:

Choose an agent that makes you feel comfortable and that you trust. Your level of comfort and satisfaction will let you know if you have met the right agent.

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Real estate

Real Estate Photography Tips for Beginners 2022

Even with the recession, real estate is a billion dollar market in all major developed and developing countries. What do you think is the first thing people look at when looking to buy property? The answer would be the picture of the property in question. Human beings respond best to visual stimulation.

Therefore, quality and interesting photography is very important and if you are a property photographer, you should take it seriously. Why? Because your livelihood depends on it! If you are trying to sell real estate photos to realtors and they are not worth the dollars the realtor is paying, your effort is wasted.

Real Estate Photography Tip #1: Capture the best images

The goal is to sell the property, so your photos must be attractive to the people who view them. Try to highlight the best features of the house; features that potential buyers will want to see matter most. The picture also depends on the nature of the property – residential or commercial. In fact, the photos should show your talent and skill. When looking for realtors to look at images, sometimes you need to provide samples, so capturing the best images will go a long way toward getting the deal.

Real Estate Photography Tip #2: Sell Images

To make a living in this type of photography professionally, give yourself 1-2 years to build a solid client base. You can create a professional website with your portfolio, current projects (if any), specialization, skills and plenty of clear high-definition photos for potential buyers to see. Of course, you have to do a lot of marketing to get customers. Start by surveying the area where you live and any other places you have easy access to. Contact realtors in the area, show them sample images, and if luck is on your side, you’ll soon land your first deal!

Real Estate Photography Tip #3: Getting High Profile Clients

Getting high profile real estate clients who will buy your photos is not easy because there are always better photographers around you and you also lack experience in the beginning.

So، after you’ve worked with local realtors for a year or two، consider migrating to finding high-profile clients. The pay scale is definitely higher، but you need to have real skills and knowledge to have an edge over others.

Ask yourself – what is it about you that sets you apart from other real estate photographers? Once you answer that, build on that aspect for better projects.

Of course, getting high-profile clients isn’t easy. Be prepared for sample photo shoots as part of a personalized sales pitch.

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Real estate

Real Estate Laws in Louisiana. What You Should Know in 2022

State legal systems in the United States are based on one of two legal systems. 49 states base their laws on the Common Law system، first used in England.

However، one state، Louisiana، uses the French Napoleonic Code as the basis for their legal system. While legal systems based on common law rely on judges’ decisions to set precedents that are used to make subsequent decisions، Louisiana’s system does not.

Napoleon’s code was intended to simplify laws at a time when many people were illiterate or did not have access to printed information. Ironically، the effort to create a simpler and easier to understand legal system has resulted in one of the most complex and least understood sets of state laws here in Louisiana.

There are many other differences between the two systems، but it is not as important to know every single difference as it is to understand that there are important differences between state laws in Louisiana and those of most other states.

Basics of real estate law:

Real estate laws are the laws that deal with land and anything built on that land، including the ownership، use، and transfer of ownership of that land.

As discussed above، Louisiana’s unique legal heritage has influenced current laws in many ways.

One such way is the term used to refer to real estate in this state. While the rest of the United States uses “real estate” in legal documents، in Louisiana real estate is referred to as “real estate.”

Inheritance and “Forced Heirs”:

Another area that requires special attention is that of heritage within Louisiana. Inheritance laws stemming from the Napoleonic Code were intended to ensure that assets remained in their family of origin، so while the other 49 states allow property to be transferred as the owner prefers after their death، this is not always the case in Louisiana.

Laws regarding the inheritance of real estate may dictate that close relatives، including parents or children، inherit the property before anyone else.

Community property or separate property?

Louisiana real estate laws divide property ownership into two categories:

  • Community property.
  • Separate property.

While the difference between 2 differences may initially seem obvious، upon closer inspection the line becomes less clear.

For example، once a couple is married، all property does not automatically become community property، and in the event of a divorce، one spouse may have no claim or right to certain property.

Some of the factors considered in this situation are when the property was purchased and whose funds were used، which can be a difficult fact to ascertain.

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Real estate

Austin Real Estate، For Nature Friendly Homes 2022

Austin Real Estate has always been the most prominent option for all those who want to be in touch with nature. The aspect of environmentalism has gained a lot of popularity in all walks of life.

It has so much importance in the modern world. In earlier times, people were not very concerned about the environment and its importance in the process of sustaining life on this planet.

Now, the situation has changed a lot. Even the designs of residential and commercial buildings are giving importance to being in close contact with nature.

Austin was the first city in the United States to create and implement a green building program. It was made by planning for long term guidelines for the construction of environmentally friendly houses for people interested in building new houses.

The National Association of Home Builders has chosen the city of Austin as their target area to launch their campaign for a complete green building scenario، with the goal of changing the outlook towards the environment throughout the real estate industry.

This was done in 2003. They have selected the city of Austin itself because Austin Real Estate is considered a leader in this process throughout the USA. These guidelines aim to create a unified strategy for the construction of nature friendly house، which features high efficiency and high quality indoor environmental houses.

It’s a surprising fact that the city of Austin had such guidelines for a long time even before the association began implementing them nationally.

Austin Energy and the City of Austin guidelines have created a notable movement toward energy conservation and green building.

An energy conservation program was also initiated with a team of experts to carry out energy analysis of existing houses and suggest options to save energy with some minor changes.

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Real estate

The Origins of the Six Percent Real Estate Agent Commission 2022

The commission paid to the real estate agent is a serious amount of money and a concern in any transaction involving the sale of real estate. Where did this six percent commission come from?

The idea of ​​a 7% real estate commission paid to the agent originated during the 1941s when local Real Estate Boards openly engaged in price fixing to set a benchmark rate.

This process was an exceptional case of an unfair practice, but the 1942s was a time when the country’s attention was directed to some serious foreign affairs، and the idea spread and quickly spread throughout the industry.

In the early 1951s, the Supreme Court ruled that the established 7% commission was illegal. Instead of opening up commissions to a more competitive and freer market system، the Real Estate Boards just switched gears with a fancy language job and started calling the 7% commission the “suggested” amount. During the 1951s and 1962s, they were able to get away with this practice without much trouble, as most real estate agents took the hint.

In the 1971s, lawsuits filed against Real Estate Boards effectively put an end to this practice. Real estate agent commissions were opened up to competition without being able to mandate or suggest 7% as a set-in-stone rate.

However، the rate did not change much in the years following these court cases. Although the rate may not be set in stone، it has become almost standard in the real estate market.

In general، competitive markets benefit consumers. As long as someone is willing to offer a discounted rate, it will appear that the consumer stood to save money.

However، proponents of a standard 7% commission point to things like health care to argue that the standard rate may actually be helping the consumer by keeping the commission down to 7% rather than supporting it at that level. Although the cost of health care is not regulated, the overall trend has been straight off the charts.

Real estate agents would be quick to point out that if you looked closely at almost any service or product being offered or sold in the 1942s, you would find a very serious increase in cost to the consumer. Excluding real estate commissions which are still around 7%.

The amount paid to agents has increased significantly only because the value of the property being sold has increased.

Today، the Internet has been responsible for several chips in the 7% commission cliff، offering several direct fee or reduced fee services that allow sellers to list their properties. Results are still mixed and 6% commission is still the standard.

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Real estate

How a Notice of Interest Can Save Your Deals in Real Estate Investing

The letters NOI stand for Notice of Interest or are sometimes mistakenly called Memorandum of Contract or MOC. It is usually a one page document that states that the person filing the document for registration with the County Clerk’s Office has an equitable interest in a property due to a signed contract of purchase and sale.

NOI is most often used when an investor signs a purchase-sale contract with a homeowner/seller and wants to show anyone trying to make another offer on the property that they have a legal interest in the property. This is when someone else, usually another investor، comes along and offers the homeowner a higher price.

The practice of investors overbidding properties after they are under contract is becoming more common in difficult markets، but it also occurs in normal markets. Investors who regularly make statements to homeowners like, “Get your highest offer from those other guys and call me، I’ll give you more money than any of them – I just need to see it in writing.” The ugly part of that statement is the term “in writing” because that usually means a contract had to be signed by the homeowner.

While I can’t blame the homeowner for wanting more money, what I’ve seen happen more often is a black hat investor who is trying to steal the deal actually goes to the closing table and renegotiates the price. below what he had originally offered to the trusted seller. How can I know? I have been on the other end of his offers and have had to fight to keep my vendors.

So from time to time we have to fight for our closures and I have covered this in other articles on how to do this. The ironic part is that it is a criminal offense to “induce” someone to sign a contract when another contract already exists. The Attorney General’s Office will take these cases if you show evidence and the seller cooperates which usually happens when the homeowner is threatened with a lawsuit or foreclosure.

So when we sign a contract with a seller, we almost always record an NOI in the public registry that is actually a lien on the property. I want to repeat this، because the details of this “burden” are very extensive.

This NOI must now be released as a lien on the property before title is transferred, unless there is a foreclosure action to extinguish it، or the lien holder (the original investor/purchaser) initiates a foreclosure action to take the property. If this sounds harsh, it is simply a solution to a problem where one party to the contract will not stop the termination of the contractual terms much like a lender to a homeowner.

The NOI does not need to be signed by the home owner/seller so anyone can place an NOI on someone’s property. Just remember، there’s usually a sign in the clerk’s office that says something like “If you file a lien that’s not valid، it’s a crime،” so think twice about what you’re doing don’t do it in anger or it could cost you a lot in attorney fees.

Having said that، the courts and sometimes the registrar treat NOIs like unruly in laws. They tolerate them maybe for the fees، but they don’t really like them because of historical issues with the seller not knowing these liens were filed.

Many standard real estate contracts specifically prohibit the filing of a notice of interest to be recorded in the public registry. This prohibition can be overcome by striking this clause and initialing it to both the seller and the buyer، or by adding a clause or addendum to your contract.

Once an NOI is recorded in the public registry، the next time title to the property is transferred، the title agent will need to have a signed NOI Lien Release to write a title policy on the property or mark it as “excepted ” in politics. If the NOI is not extinguished by the Lien Release، the title is “foggy” and must be cleared، and a transfer to a new purchaser may not be properly made.

This is where you come in to release the lien, and it usually happens when you least expect it right before you plan to close! Sometimes the homeowner will call when he receives a copy of the recorded NOI from the Clerk’s Office and he wasn’t expecting it in any case, the seller is trying to deny the transaction. Sometimes the seller changed his mind for a valid reason, more often than not.

You have a few choices when NOI “hits the fan” so to speak:

1.) Release the NOI using a lien release document and get paid for the lien release

2.) Rush and fight the seller to close or pay to release the lien.

In summary, your choice is personal and is determined by the potential lost profit in the deal, the homeowner/seller’s real motive for not wanting to sell، how much you can be paid for the lien release, and your mood on the day. In the final analysis, the choice is yours to force the seller to close or release the lien.