{"id":23098,"date":"2023-12-28T16:01:37","date_gmt":"2023-12-28T16:01:37","guid":{"rendered":"https:\/\/www.anthonydidonato.net\/wordpress\/?p=23098"},"modified":"2023-12-28T16:01:38","modified_gmt":"2023-12-28T16:01:38","slug":"prepare-for-common-legal-hurdles-in-your-business","status":"publish","type":"post","link":"http:\/\/www.anthonydidonato.net\/wordpress\/prepare-for-common-legal-hurdles-in-your-business\/","title":{"rendered":"Prepare for Common Legal Hurdles in Your Business"},"content":{"rendered":"\n<p>These are the hurdles agents most often face and how to stay in compliance while navigating a transaction.<\/p>\n\n\n\n<p>A Korean-American couple recently asked Brian Bartholomew to show them homes only in Korean neighborhoods. Bartholomew, a sales associate with RE\/MAX Cornerstone in Brea, Calif., immediately saw the red flag. \u201cI can\u2019t steer you toward an area just because of race,\u201d he says he told the client. If Bartholomew had done what the client asked, he would have been in violation of fair housing law. The couple decided to continue working with Bartholomew, and he showed them homes in areas they requested by name rather than demographics.<a><\/a><\/p>\n\n\n\n<p>It doesn\u2019t matter that the buyers were the ones to ask for specific neighborhoods based on their racial and ethnic profile. Under the federal Fair Housing Act and the REALTOR\u00ae Code of Ethics, you cannot limit your customers\u2019 housing options based on race or ethnicity, among other protected statuses, even if it\u2019s what the client wants. This is just one of many legal issues practitioners may misunderstand. Beyond fair housing, transactional items that can be wrought with legal consequences include disclosures, contracts, escrow management, and lawful property marketing. \u201cLegal issues permeate all aspects of the real estate industry,\u201d says Steven D. Graham, vice president of risk management at the Missouri REALTORS\u00ae association.<\/p>\n\n\n\n<p>Graham\u2019s advice to real estate pros\u2014especially rookies\u2014is to \u201ckeep in mind that you are not a lawyer, so you should not be interpreting contracts or providing legal advice.\u201d Rather, you should refer clients to their attorneys when a potential legal issue arises. Common legal issues in real estate include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inaccurate listing information.<\/strong> Graham says he\u2019s seen lawsuits over listings using square footage from a local assessor\u2019s office that turned out to be false. The Missouri state association has created a Measurement Disclaimer Form to address square footage. It provides the opportunity to cite the source of the square footage used for a listing but also says, \u201cIf exact acreage or square footage is a concern, the Property should be independently measured.\u201d<\/li>\n\n\n\n<li><strong>Misleading property photos.<\/strong> Using old photos of a property in a listing can lead to accusations of misrepresentation in advertising. Bartholomew recalls going to see one house whose photos showed a lush green lawn, but there was no grass on the property in person. Such a misrepresentation is a violation of Article 2 of the Code of Ethics, which states: \u201cREALTORS\u00ae shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.\u201d A Standard of Practice was added to Article 2 last year addressing the Photoshopping of listing photos.<\/li>\n\n\n\n<li><strong>Escrow.<\/strong> A buyer who gets cold feet and wants to cancel a deal may also want his or her earnest money back, turning to you to figure out how to retrieve it. You should refer your client to his or her attorney in such a circumstance. Even in places like Illinois, where a real estate broker serves as the escrow agent, the broker cannot release funds without written permission from both parties in the transaction or a court order.<\/li>\n\n\n\n<li><strong>Wire fraud.<\/strong> Fake emails from scammers instructing the release of escrow funds is a growing problem. If you handle escrow funds, you should have policies in place to verify any wiring instructions that are sent to your clients, says Juana Watkins, general counsel at Florida REALTORS\u00ae. Such policies might include a disclaimer on your email signature that you will never give wiring instructions via email, as well as procedures to have clients call you to verify any instructions they receive.<\/li>\n<\/ul>\n\n\n\n<p>Some legal issues will be more obvious, such as a seller who refuses to disclose a known defect about a property. But what if you need additional knowledge about legal issues? For anything you are uncertain about, use industry resources such as in-house legal counsel, if your brokerage has one, or consult your local or state association\u2019s legal hotline, advises Betsy Urbance, general counsel and vice president of legal services at Illinois REALTORS\u00ae. \u201cThose organizations typically have people who monitor what is going on in the industry and publish about it on a daily basis\u2014if not hourly,\u201d she says. The Florida REALTORS\u00ae\u2019 legal hotline, for example, fields 70,000 calls and emails a year. The Illinois and Missouri state associations\u2019 hotlines handle roughly 3,000 calls each annually. The most common questions relate to disclosures and representation of properties in marketing materials.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Disclosures: A Constant Legal Bug-a-Boo<\/h4>\n\n\n\n<p>Issues around property disclosure are perhaps the most common legal pitfalls for real estate pros. Bruce Aydt, ABR, CRB, a real estate attorney and past president of Missouri REALTORS\u00ae, says about 80 percent of claims he\u2019s handled relate to property disclosures. State disclosure requirements vary, so you should know the laws in your area. Remember that although your REALTOR\u00ae association may provide disclosure forms, your state may not legally mandate all the items on the list.<\/p>\n\n\n\n<p>But there may be particular disclosure laws that are important in your area. In Missouri, where meth houses are common, the state requires disclosure of methamphetamine production on any property. Local REALTOR\u00ae associations there have adopted specific meth disclosure forms they include as an item on the overall seller disclosure form. Aydt notes that agents in Missouri are not required to verify or substantiate any information the seller shares with them about meth production on the property. But agents do need to inform buyers of adverse material facts related to the property that they have knowledge about.<\/p>\n\n\n\n<p>Other disclosures can be difficult as well. Bartholomew recalls one client who had done roof repairs and repainted the ceiling in a room where leaking had occurred. The seller disclosed the work to potential buyers, but while the house was on the market, more rain caused the leak to reappear\u2014and more repairs needed to be done. The seller also disclosed the second round of fixes. When a buyer\u2019s inspector found evidence of the repairs, Bartholomew could point to the disclosure to satisfy the buyer\u2019s query about the roof.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Know Your Transaction Forms<\/h4>\n\n\n\n<p>You should read and understand every word in the forms you, your clients, and the counterparties in a transaction are signing. Pay attention to the fine print; you need to know exactly what it says in case your clients skim over it and miss important information. \u201cThe more knowledgeable you can become with a contract in all of its forms, the better off you\u2019ll be,\u201d Watkins says.<\/p>\n\n\n\n<p>It\u2019s also wise to keep records of signed documents for every deal. \u201cYou never know what may come back to bite you,\u201d says Linda Darer, a sales associate with Julia B. Fee Sotheby\u2019s International Realty in Rye, N.Y. Such records came in handy when Darer worked with a divorcing couple who was selling their home. The husband, who had moved out of the $2 million home in Westchester County, accused his wife\u2014and, by extension, Darer\u2014of being unreasonable and rejecting offers because she didn\u2019t really want to sell. He sought legal avenues as part of the divorce proceedings to force her to accept an offer. The wife\u2019s attorney asked Darer, who kept written records of every offer and counteroffer in the transaction, to furnish the information for the divorce case. The judge, after reviewing the records, determined that the wife was seriously entertaining and countering offers.<\/p>\n\n\n\n<p>\u00a9National Association of REALTORS\u00ae<br \/>Reprinted with permission<\/p>\n","protected":false},"excerpt":{"rendered":"<p>These are the hurdles agents most often face and how to stay in compliance while navigating a transaction. A Korean-American couple recently asked Brian Bartholomew to show them homes only in Korean neighborhoods. Bartholomew, a sales associate with RE\/MAX Cornerstone in Brea, Calif., immediately saw the red flag. \u201cI can\u2019t steer you toward an area &hellip; <\/p>\n<p><a class=\"more-link btn\" href=\"http:\/\/www.anthonydidonato.net\/wordpress\/prepare-for-common-legal-hurdles-in-your-business\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,8],"tags":[5,32,4,9],"class_list":["post-23098","post","type-post","status-publish","format-standard","hentry","category-news","category-real-estate-tips","tag-anthony-didonato","tag-news","tag-real-estate","tag-tips","item-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Prepare for Common Legal Hurdles in Your Business - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.anthonydidonato.net\/wordpress\/prepare-for-common-legal-hurdles-in-your-business\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/prepare-for-common-legal-hurdles-in-your-business\\\/#article\",\"isPartOf\":{\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/prepare-for-common-legal-hurdles-in-your-business\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"headline\":\"Prepare for Common Legal Hurdles in Your Business\",\"datePublished\":\"2023-12-28T16:01:37+00:00\",\"dateModified\":\"2023-12-28T16:01:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/prepare-for-common-legal-hurdles-in-your-business\\\/\"},\"wordCount\":1245,\"publisher\":{\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"keywords\":[\"Anthony DiDonato\",\"News\",\"Real Estate\",\"tips\"],\"articleSection\":[\"News\",\"Real Estate Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/prepare-for-common-legal-hurdles-in-your-business\\\/\",\"url\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/prepare-for-common-legal-hurdles-in-your-business\\\/\",\"name\":\"Prepare for Common Legal Hurdles in Your Business - 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Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that \u201cperfect\u201d property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently. When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting \u2013 or exceeding \u2013 his clients\u2019 expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame. 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Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that \u201cperfect\u201d property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently. When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting \u2013 or exceeding \u2013 his clients\u2019 expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame. For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania\u2026 call Anthony DiDonato.","sameAs":["http:\/\/www.anthonydidonato.net"],"url":"http:\/\/www.anthonydidonato.net\/wordpress\/author\/admin\/"}]}},"_links":{"self":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts\/23098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/comments?post=23098"}],"version-history":[{"count":0,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts\/23098\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/media?parent=23098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/categories?post=23098"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/tags?post=23098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}