realestate newsletter by rickman3


									NYS Department of State                                                          Volume 2, Number 1 — May 2003

      Real Estate Newsletter
                                        A Message from Secretary Daniels
                                           The New York State Real Estate Board is a forum
                                        for an active discussion of important issues facing New
                                        York State’s real estate industry. For example, the Board
                                        is presently discussing the structure and delivery of
                                        qualifying education requirements. In conjunction with
                                        its regular meetings, the Board convenes a public hear-
                                        ing in order to solicit feedback on the issues before the
                                                                                                      Randy A. Daniels
                                        Board. Further, the public hearings provide anyone in        Secretary of State
                                        New York State the opportunity to make comments,
                                        suggestions, and observations about real estate practice in New York. We
George E. Pataki                        encourage those interested to attend our meetings and in particular, the
Governor                                public hearing. Your input insures that we act in the best interests of the
 Real Estate Board Members              real estate industry, as well as the consumer and general public.
                                           Our country, our state, and our hometowns all face challenges that will
 Randy A. Daniels, Secretary of State            test our energy and resolve. Despite the challenges that we currently face,
                                        we have the leadership, vision and sense of purpose that is necessary to
 Teresa A. Santiago Chairperson and
   Executive Director Consumer          manage our way through these current difficulties. I am profoundly opti-
   Protection Board                     mistic about our state and our nation and look forward to working with all        of you within the real estate industry on the issues of the day.
 Edwardina D. Lodes, Vice Chair
 Benjamin Weinstock, Esq., Secretary    New Carbon Monoxide Regulations
                                           As a result of legislation passed and signed by the Governor in 2002,
 George Constantin        new regulations have been put into effect for the installation and mainte-
 Michael Dubb
                                        nance of carbon monoxide alarms in certain residential properties.                        Effective on March 6, 2003, Section 1225.2 of 19 NYCRR Part 1225
 Veronica Gargiulo                      requires carbon monoxide alarms to be installed in newly constructed one-                    and two-family dwellings, multiple single family dwellings (townhouses)
 James LaValley                         and in dwelling units located in buildings of Group R-2 occupancies owned                as a condominium or a cooperative. Carbon monoxide alarms are also re-
 John R. Piper                          quired in these structures when they are offered for sale.                         At least one carbon monoxide alarm must be provided in each dwelling
 Alan N. Rechtschaffen                  unit and must be installed in the immediate vicinity of a bedroom on the                        lowest floor level of the dwelling unit containing a bedroom. The alarms
 Steven Spinola                         shall be listed and labeled as complying with UL 2034-2002 (Single and                   Multiple Station Carbon Monoxide Alarms, Second Edition, October 29,
 Ronald B. Steed                        1996 - with Revisions through and including June 28, 2002, published by                  Underwriters Laboratories, Inc.) and shall be installed in accordance with
 Merle L. Whitehead                     the manufacturer’s installation instructions. Carbon monoxide alarms are             permitted to be permanently connected to the building wiring system, con-
 George K. Wonica                       nected by cord or plug to the wiring system, or battery operated. Where          carbon monoxide alarms are permanently installed, they shall receive their
                                                                                                         continued on page 2
                                      continued from page 1
Real Estate Sales/Broker
Exam Locations                        primary power from a lighting circuit of the building wiring system, provided
                                      that such wiring system is served from a commercial source. Wiring shall be
Albany:                               permanent and without a disconnecting switch other than as required for
  84 Holland Avenue                   overcurrent protection. Where carbon monoxide alarms are a component of a
  Basement                            fire/burglar/carbon monoxide system, or alarms are monitored by an approved
Binghamton:                           supervising station, a distinctive alarm signal shall be used to differentiate
  State Office Building               between the carbon monoxide alarms and other alarm system functions.
  44 Hawley Street, 15th Floor        Activation of a carbon monoxide alarm shall not activate a fire alarm signal.
Buffalo:                              Carbon monoxide alarms shall be wired such that short circuits, open circuits,
  State Office Building               or any other ground-fault will not interfere with monitoring for integrity of the
  65 Court Street                     fire warning system.
  Main Floor Hearing Room, Part 5       Carbon monoxide alarms shall be maintained in conformance with the
Franklin Square:                      manufacturer’s instructions. Where a carbon monoxide alarm receives primary
  VFW Hall                            or backup power from a battery, the alarm shall emit a signal when batteries are
  68 Lincoln Road                     low. Where the battery is a removable type, it shall be replaced in conformance
  Basement                            with the manufacturer’s instructions. Carbon monoxide alarms shall not be
Hauppauge:                            removed or disabled, except for replacement, service or repair purposes.
  State Office Building                 If you have any questions about these new regulations, contact the Department
  250 Veterans Memorial Highway       of State’s Division of Code Enforcement and Administration at 518-474-4073.
  Basement Conference Room 1
Newburgh:                             Real Estate Board Committees —
  Orange Ulster BOCES Adult Ed Ctr
  471 Broadway, 2nd Floor             Summary of Current Issues
New York City:                        The New York State Real Estate              use of generic computer software to
  123 William Street                  Board has formed Committees in or-          the list of topics which do not qualify
  19th Floor                          der to better focus on specific prior-      for continuing education credit. This
Plattsburgh:                          ity issues. Here is a summary of cur-       regulation change became effective
  Clinton County Community College    rent issues.                                on March 5, 2003, and extends the
  Lake Shore Drive                                                                existing policy that a course must be
  Route 9 South                       Education Committee                         substantially real estate-related in or-
Rochester:                            The Education Committee has been            der to qualify for continuing educa-
  Finger Lakes DDSO (Monroe           working on legislation to allow quali-      tion credit for real estate licensees.
  Development Center)                 fying courses to be on-line, and elimi-
  620 Westfall Road                   nate the need for attendance in a tra-      Trends Committee:
Syracuse–Brokers:                     ditional classroom setting in all cases.    The Trends Committee has been
  333 E. Washington Street            The proposal will allow on-line             working on guidelines for the com-
  Main Floor, Hearing Room A          courses as long as providers demon-         mon practice of in-house purchases
Syracuse–Salesperson:                 strate the ability to monitor and verify    – properties purchased by someone
  American Postal Workers Union       participation. In addition, it allows       within the firm listing the property.
  407 East Taft Road                  the Department to designate that cer-       The Board would like to offer these
  North Syracuse                      tain subjects or hours be in a class-       as suggested guidelines for licensed
Utica:                                room setting. As stated by Board            brokers to consider in their practice.
  State Office Building               member Benjamin Weinstock, the
  207 Genesee Street                                                                     Total Number of
                                      challenge of the Board is to “balance
  1st Floor, Room 110C                course content with course delivery”.           Real Estate Licensees
Watertown:                            Education Committee members ap-             Salespersons     63,986
  State Office Building               proved a draft change in regulation         Brokers          48,794
  317 Washington Street, 11th Floor   to add basic computer skills train-            Total        112,762
                                      ing, instructional navigation of the
                                                                                 Figures as of December 27, 2002
                                      world wide web, and instructional
                                                                  —The case is assigned to an investigator in the En-
                                                                  forcement Unit who conducts a field investigation of
            Real Estate Appraiser
                                                                  the complaint. This may include personal interviews
                 Board Members                                    of the complainant, the appraiser and any third par-
      D. Rex Bryce, Chair                                         ties to the complaint. The investigator may obtain                                      guidance from both Appraisal Board members and
      Peter Goold, Vice Chair                                     regional advisors during the course of the investiga-                                    tion. The regional advisors may also be utilized as
                                                                  third party review appraisers.
      Robert E. Galliher
                                                                  —After the investigation is completed, the Depart-
      Wilson Kimball                                              ment reviews and evaluates the evidence to determine                        appropriate action to be taken for settlement of the
      Dominick S. Pompeo                                          matter.
      Jack Rose                                                   —If disciplinary action is recommended against the                                      appraiser, the complaint is forwarded to the
                                                                  Department’s counsel to prepare for an administra-
      Matthew Smith
                                                                  tive hearing. This hearing could result in either the
                                                                  issuance of a fine, a suspension, or a revocation of an
                                                                  appraiser’s license or state certification.

Overview of Real Estate Appraiser                                         Real Estate Appraisers
Complaint Process                                                  Certified General Real Estate Appraiser       1,490
  The Department is planning meetings with re-
gional advisors and Board members in an effort to                  Certified Residential Real Estate Appraiser   1,805
improve the current complaint process. By utiliz-
ing the Board’s experience and expertise, the De-                  Licensed Real Estate Appraiser                  391
partment will be able to expedite the handling of
future complaints. All complaints are currently re-                Real Estate Appraiser Assistant               1,963
ceived in our New York City Complaint Review
Unit (CRU) and the investigation proceeds in the                      Total                                      5,649
following manner:

—The complaint is assigned a case number. A confir-
mation letter, including the case number, is sent to the
complainant. A copy of the complaint is sent to the
appraiser, who is asked to respond in writing and to
provide any supporting documentation.                                         USPAP Reminder
—If a response is received, a CRU investigator reviews                   All real estate appraisers with a li-
the information and determines if the complaint has                   cense or certification expiring on or
merit or should be dismissed.                                         after January 1, 2004 must have com-
                                                                      pleted the seven hour national USPAP
—If the appraiser fails to respond, or if there are any out-          update course in order to renew their
standing issues or possible violations, the file is referred to       license.
the Enforcement Unit.
Personal Safety, Risk Reduction, and Broker Liability
   As real estate professionals, we are trained to pro-        It’s also important to trust your ‘gut’ instinct. As
mote ourselves in every imaginable way. We put our          professionals we are trained to look for the signals
picture, our home phone number, our voice mail, and         when someone is ready to buy. The way they move
even our web site on everything from business cards         around the property, or the comments they make
to billboards. And yet, are we aware of the increased       are good indicators. By the same token, learn to
risks with this line of work? Only when another real        look for the signals that may be warning signs. For
estate professional falls victim to an attack do we think   example, take notice if a customer is insistent upon
of all the close calls we’ve experienced. And, more         a particular meeting time, or little time is spent talk-
of us are becoming victimized.                              ing about the property and more is spent talking
                                                            about other things; while such unfocused behavior
   There are not many professions like real estate          doesn’t necessarily indicate trouble, upon noting it,
where we are often showing properties alone. We even        you should be cautious.
encourage sellers to leave the house before we arrive.
And, how many willingly jump into a car with a po-           There are only a handful of other businesses that
tential buyer? Or, hand out business cards with our         are taught to market themselves the way we do. We
home phone number?                                          need to identify the higher risk factors. Some rec-
                                                            ommended tips that should become part of your
   The risk factors are many and need to be recog-          everyday business routine include:
nized to avoid any potential danger. One of the
first steps in reducing risk of personal harm is to         – Don’t list your home phone number on your busi-
develop a “Business Action Plan”. The Plan should              ness cards or other material.
have policies and procedures that everyone should           – Don’t do personal profile ads in the newspaper.
become familiar with and help establish guidelines          – If farming an unfamiliar area, go with someone.
if a situation were to arise. Some things recom-            – Use the ‘buddy’ system at open houses and when
mended:                                                        showing vacant property.
                                                            – Meet the customer at the office first.
AT THE OFFICE:                                              – Carry pepper spray or a whistle.
– Develop an action plan specific to your area.             – Learn how to defend yourself using your every-
– Know your co-workers and look out for each                   day materials.
– Create a “buddy” system.                                     Brokers should take aggressive action to set up a
– Post emergency numbers at every phone.                    business plan for their and their agents’ safety.
                                                            Additionally, information and ideas may be gleaned
BUSINESS SAFETY CHECKLIST:                                  from a number of sources. The New York State
– Consider having prospects sign in and show some           Department of State approves continuing education
  form of identification.                                   courses which deal with this subject matter. You
–When leaving for an appointment, leave specific            may call (518) 486-3803 for a course listing.
  details with your office on where you will be
  going, what time the appointment is for, and how
  long you expect to be.
– When finished with your appointment, make
  contact with your office as soon as possible.
– Ride separately from the customer when showing
– Dress for quick action.
– Establish a “buddy” system.
– Carry items to help protect you just in case.

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