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									                                  What’s new at the Idaho Real Estate Commission

          The Real Estatement
              Vol. 22 No. 1                                                                          January 2003

                                                             Comments from the Chair
                                                                    by Diane Duncan, Commission Chair

                                            A definite plus for you is the additional       By accessing the Commission web
                                            flexibility that has been implemented in     site, it is possible for you to sit in the
                                            reaching the required hours. You can         comfort of your office and conduct
                                            now receive CE credit for courses taken      business with us on a twenty-four/seven
             Diane Duncan                   in pursuit of an industry designation,       basis. Recent additions to this site allow
                                            among numerous other options. A com-         the licensee to change personal infor-
                                            plete list may be accessed by visiting       mation, look up the status of other li-
   Thank you for the privilege of serving   the Commission’s web site at                 censees, and renew their license. The
on the Real Estate Commission for the           broker can add or remove a salesper-
past seven years. During that time, the        We were told that our license law         son, change business location address,
Commission has implemented numer-           was antiquated, confusing, difficult to      as well as other functions, at any time.
ous changes. Quite frankly many of          read and understand. The Commission,            Please continue to contact us with
those changes have been made be-            with input from the industry, spent over     suggestions for improving our processes.
cause you, the licensees, have sug-         two years on a total revision of our         You can call, write, e-mail or visit with
gested methods to change or improve a       statutes to eliminate duplication, clarify   us at a regular Commission meeting.
process and we, your Commission mem-        language, and categorize similar topics.     You will be welcomed. The Commis-
bers, have listened.                           Then the industry brought to our at-      sion is charged with protecting the pub-
   When the Continuing Education pro-       tention what they viewed as a concern        lic interest, which means that although
gram was signed into law, we had a          with our investigatory process, so we        we must protect the public from un-
mandatory 12-hour program which was         have refined and changed the process.        scrupulous licensees, the other part of
designed and produced by the Real           For an amended version of that pro-          that equation is that it is our duty to arm
Estate Education Council. However,          cess, see the Investigative & Hearing        you, the licensee, with the highest de-
industry input was welcomed in each         Process article on page 4 or visit our       gree of knowledge possible in order for
course design. During the past few          web site to review the full investigative    you to do your job. Please contact us.
years, licensees petitioned the Com-        and hearing process. Within this new         The Commission listens!
mission to allow more flexibility in the    process is the requirement that the Com-
program. As everything does in the          missioners review and approve an in-
state government process, it took a         vestigative report before action can
while to achieve the requested flexibil-    commence against a licensee.
ity, and we have now approved a Core           Currently, the Commission is re-
Course and multiple avenues in which        searching the single licensure issue with         Inside this Issue
to obtain elective courses.                 other states that have implemented this
   You, the industry, and the Commis-       concept. Since the agency relationship          2003 Legislation ...................3
sion recognized the need for more edu-      with the consumer, buyer or seller, is
cation to increase the professionalism      generally with the salesperson, not the         Course Schedules ..................3
of the licensee while hopefully decreas-    designated broker, it makes sense for
ing the number of complaints. Together      all licensees to be brokers.                    Double Dipping ................. 7-8
we crafted the present law increasing          We have been studying the present
the Continuing Education requirement                                                        E&O Update ...................... 12
                                            designated agency statute to determine
to 16-elective credit hours plus the Core   whether the time has come to make               New Online Features ............3
Course, not to exceed four credit hours.    some revisions in the original law.
       The Real Estatement
                                                                        Staff Changes
   Vol. 22, No. 1       January 2003                                Jennifer Humphreys joined the Idaho Real Estate Com-
                                                                 mission on August 19, 2002, as Office Specialist in the
    The Real Estatement is an official                           Licensing and Education departments. Jennifer grew up in
 publication published semiannually by                           Lewiston and moved to Boise to be closer to her family. She
 the Idaho Real Estate Commission.
                                                                 has worked for several different state agencies in the last 5
    Articles by outside experts express
                                                                 years, most recently the Idaho Transportation Department.
 the author's particular viewpoints. These
 opinions are not necessarily shared by       Jennifer Humphreys Recently engaged, Jennifer and her fiancée plan on getting
 the Commission, nor should they be
                                                                 married next year. She enjoys painting miniatures and putting
 mistaken for official policy. The articles                      together jigsaw puzzles.
 are included because we feel they will be                          Nancy Mesaros joined the Idaho Real Estate Commis-
 of interest to the readers. Submissions                         sion on June 25, 2002, as Inspector in the Enforcement
 are solicited; however, articles should                         Department. She replaces Craig Boyack who was promoted
 not exceed 500 words in length and may                          to the Investigator position.
 be edited as space and content make                                Nancy is an Idaho native with 14 years of real estate
 necessary.                                                      experience as an office manager and licensed personal
    Reprint permission is granted pro-                           assistant in Twin Falls and 5 years in the banking industry.
 vided credit is given to the Commission        Nancy Mesaros       Her formal education consists of a bachelor’s degree in
 and the author. Any article separately                          accounting from Utah State University. Nancy resides in
 copyrighted by its author(s) also requires                      Boise, has two grown daughters and two perfect grandchil-
 permission from the author(s).                                  dren who monopolize all of her free time.
    Costs associated with this publica-
 tion are available from the Idaho Real
 Estate Commission in accordance with          Idaho Real Estate Commission Guidelines
 section 60-202, I.C. 1-03/7,500/429.
    Please advise the Commission office
                                                 The Commission publishes “Guidelines” to further explain the Idaho Real
 of any individuals with disabilities need-
 ing accommodation.
                                              Estate License Laws and Rules.
                                                 They can be found on our web site at
   Idaho Real Estate Commission:                 The Business Conduct and Office Operations (BCOO) correspondence course
   633 North Fourth Street                    also contains the Guidelines and can be purchased from the Commission office for
   P.O. Box 83720                             $20.
   Boise, Idaho 83720-0077
                                                Guideline topics include:
   (208) 334-3285
                                                ♦ Cancellation or Withdrawal of Listings
   (866) 447-5411 Toll free in Idaho
   (208) 334-2050 Fax
                                                ♦ Out-of-state Real Estate Agents Acting in Idaho
   1 800 377-3529 TRS
                                                ♦ Regular Employee Status Determination            ♦ Guaranteed Sales Plans
                                                ♦ Guidelines for “Suspended” Brokers
   Governor                                     ♦ Approved Escrow Holders
   Dirk Kempthorne                              ♦ Terms Under Which Rental or Lease Fees May be Split with Nonlicensed
   Idaho Real Estate Commission                 ♦ Splitting Fees with Nonlicensed Persons Prohibited
   Ron Clawson, Idaho Falls                     ♦ Offices with Similar Business Names Operating at the Same Address
   Diane Duncan, Coeur d’Alene                  ♦ Offering Incentives to Potential Buyers
   Bob Jones, Boise                             ♦ Licensed Idaho Resident with Nonresident Broker
   Steve Kohntopp, Twin Falls                   ♦ Disputed Earnest Money
   Education Council
                                                ♦ Establishing Real Estate Trust Accounts
   Gene Galloway, Pocatello
                                                ♦ Presentation of Multiple Offers by the Listing Agents
   Gail Heist, Boise                            ♦ Use of Unlicensed Assistants and Office Staff
   Bob Jones, Boise                             ♦ HUD Regulations on Referral Fees
   Donna Jones, Boise                           ♦ Signatures and the Use of Counteroffer Forms
   Beckie Kukal, Jerome                         ♦ NonAgency
   Bill Zales, Coeur d’Alene                    ♦ Telephone Solicitation
                                                ♦ Auctioneers of Real Estate
   Editor...Jill Randall
                                                ♦ Licensees’ Personal Transactions to be Conducted Through a Respon-
   Assistant Editor...Marty Wallis
                                                     sible Broker
2-The Real Estatement                                                                                            January 2003
    2003 Commission Legislative Package
                       by Donna M. Jones, Executive Director

   The Commission has developed two             Bill Authorizing Commission
proposals for the 2003 Idaho Legisla-        Review of License Applications of
tive Session. We reviewed and ac-            Convicted Felons
cepted input from the Idaho Associa-            At present, the License Law pro-
tion of REALTORS® Executive Com-             vides a five-year “waiting period” be-
mittee and made a number of revisions        fore a convicted felon can qualify for a                     Donna Jones
based on those comments and sugges-          license. Once the five-year period has
tions.                                       elapsed, the Commission is without au-         drafted a new proposal, which is a
   As a result of this process the Com-      thority to deny a license based upon the       significant change from that submitted
mission has developed two separate           applicant’s convictions. This is so, re-       last year, and which addresses the con-
bills. The first is a Housekeeping bill.     gardless of the seriousness of the con-        cerns expressed by those legislators.
The other is specific to the process for     viction, its relationship to the practice of      There are a few other “housekeep-
licensing persons who have been con-         real estate, and any other circumstances       ing” types of changes also contained
victed of a felony. This second proposal     that may be relevant to the applicant’s        within this bill.
would grant the Commission the au-           suitability for a license.                        First, the Commission is seeking to
thority to review the applications of           In order to better protect the public,      change the “trigger” event for the 5-
persons who have been convicted of a         the Commission would like to assume            year waiting period. This period will
felony, in accordance with specific cri-     the responsibility of reviewing the appli-     begin when the applicant is released
teria bearing upon the person’s suitabil-    cations of convicted felons before grant-      from probation or parole, which will
ity for a real estate license.               ing a real estate license.                     always be later than when the person is
   Below is a brief description of each         This bill would provide the Commis-         convicted or released from prison. The
bill.                                        sion with authority to review the license      amendment would also delete certain
                                             applications of any person who has             language, which is redundant of the
   Housekeeping Bill                         been convicted of any felony. It also          definition of the “conviction” already
   This proposal amends:                     sets forth the standards that the appli-       existing in the License Law.
   Section 54-2003(3) adding back into       cant must meet and lists the criteria that        Finally, section 54-2012(h ) is being
law the requirement that brokerages          will be considered by the Commission.          amended. The reason is that the proce-
who conduct transactions for mobile             Last year, the Commission introduced        dure for fingerprinting is set elsewhere
homes, motor homes or floating homes,        a similar measure which was with-              in state statute and federal law.
which are not “real estate”, must com-       drawn after concerns were expressed               We believe this bill is of tremendous
ply with the License Law with regard to      by some Senate committee members.              importance to the industry, to the safety
those transactions.                          However, the Commission remains very           of the public, as well as real estate
   Section 54-2013(6) allowing for “self-    concerned with the licensing of con-           licensees. The Commission is asking
certification” of compliance with insur-     victed felons. Accordingly, we have            for your support.
ance requirement, making proof of in-
surance subject to audit by the Com-
mission.                                                          Questions & Answers
   Section 54-2018(8) clarifying that a
                                                 Question: Can an agent pay a re-           their jurisdiction prior to paying the
licensee does not get a refund if he          ferral fee to a licensee in another           fee.
decides to terminate the license.
   54-2023(2) clarifying that the licensee
                                                 Answer: License law 54-2054(2)                Question: Can a brokerage adver-
will not get Continuing Education (CE)
                                              states that you cannot pay any part or        tise that anyone buying a home from
credit twice for taking the same Core
                                              share of a commission, fee or compen-         them, during a specific time period, will
Course, or for taking the same course in
                                              sation to any person who is not actively      receive a rebate?
the same license period.                      licensed in Idaho or in another state or         Answer: License law 54-2054(2)
   Section 54-2035 responding to IREC
                                              jurisdiction. The Idaho broker making         allows a licensee to pay any part or
and IAR concerns over the fact that the
                                              the payment is responsible for verify-        share of a commission, fee or compen-
requirements for certification exist in
                                              ing the active licensed status of the         sation received directly to a principal
policy rather than law. The amendment
                                              receiving broker.                             to the transaction. However, no com-
re-organizes the subsection, and brings
                                                 It is therefore permissible to pay         mission, fee or compensation may be
long-standing written policy into the         referral fees to brokers outside of Idaho.    split with any party to the transaction in
                                              You must verify that the person re-           a manner which would directly or indi-
                                              ceiving the fee is actively licensed in                       (continued on page 19)
January 2003                                                                                                   The Real Estatement-3
                              The Investigative & Hearing Process
                                                         Revised October 2002
  This abbreviated article has been prepared to better inform real estate licensees of the procedures followed during
an investigation and disciplinary proceeding. A complete copy, as well as the Rules of Practice and Procedure,
may be accessed at our web site at, or may be provided upon request from the
Commission office.
   The Commission is authorized by stat-       sonable investigative questions of the          the completed investigation are suffi-
ute to administer and enforce the Real         Commission, and must make available,            cient to support the filing of an Adminis-
Estate License Laws and Rules and to           promptly upon request, any and all records      trative Complaint. In the event the facts
investigate the actions and discipline any     to the Commission at the licensee’s own         are determined to be insufficient, the
licensee found to have violated these          cost and at the location or in the manner       Staff will issue a letter of “no action” and
laws. However, the Commission has no           requested by the Commission.                    the matter will be closed.
jurisdiction or authority to adjudicate the       Authority to Discipline. The Com-               In general, the Staff employs the fol-
contractual rights of parties, to force a      mission may temporarily suspend or per-         lowing procedures when conducting an
real estate licensee to perform under the      manently revoke licenses, issue a formal        investigation:
terms of a contract, or to award dam-          reprimand and impose a civil penalty in            At the onset of the investigation, the
ages. There are civil remedies that may        an amount not to exceed $5,000, and             Commission investigator writes to the
be available to the complaining party by       assess costs and attorney’s fees for the        licensee being investigated, informing
filing a lawsuit in a court of appropriate     cost of any investigation and administra-       him or her of the complaint or informa-
jurisdiction. Disputes involving $4,000        tive or other proceedings against any           tion received, and requests that the li-
or less may be resolved in Small Claims        licensee who is found to have violated          censee respond to the allegations in writ-
Court.                                         any section of the Idaho Code, the              ing. The licensee may be asked to pro-
     A person is acting “within the state      Commission’s administrative rules or any        vide a written response to specific ques-
of Idaho” if that person is dealing with       order of the Commission. The Executive          tions posed by the investigator, or to
any interest in real property or a business    Director may issue informal letters of          provide documents or other information.
opportunity involving an interest in real      reprimand to licensees without civil pen-       After receiving the licensee’s written
property, which is situated in this state,     alty or cost assessment.                        responses, the investigator may request
or is conducting or attempting to con-            The Commission may impose a civil            a meeting with the licensee and may
duct or solicit real estate business with      penalty in an amount not to exceed $5,000       direct the licensee to bring additional
residents of the state of Idaho.               and assess costs and attorney’s fees for        documents. Typically, the documents
   Audits. The Commission or its duly          the cost of any investigation and admin-        requested are those related to a real estate
authorized representative is authorized to     istrative or other proceedings against any      transaction and are normally kept in the
conduct periodic inspections, surveys          person who is found, through a court or         licensee’s office. In some instances it
and audits of the transaction records and      administrative proceeding, to have acted        may be necessary for the investigator to
real estate trust accounts of all Idaho        without a license in violation of section       remove original documents to another
licensed designated brokers.                   54-2002, Idaho Code.                            location for copying. Where this occurs,
   Any transaction records or real estate         The civil penalty provisions of this         the licensee may request a receipt de-
trust account records located outside the      section are in addition to, and not in lieu     scribing the originals taken and indicat-
state of Idaho shall promptly be made          of, any other actions or criminal penalties     ing when they will be returned.
available to the Commission upon re-           for acting as a broker or salesperson              Once the investigation is completed,
quest at the licensee’s own cost and at        without a license.                              the results and any recommendations are
the location or in the manner requested           Complaint and Investigative Pro-             forwarded to the Executive Director for
by the Commission.                             cess. Consumer complaints alleging li-          a decision on how to proceed. Based
   If the analysis of a broker’s real estate   censee misconduct must be submitted in          upon the results of the investigation, the
trust account indicates a deficiency or        writing to the Commission. A complaint          Executive Director may decide (1) to
any irregularity which cannot be re-           alleging facts that, if true, would consti-     conclude the matter at that point, by
solved between the Commission and the          tute a violation of the license laws, will be   either closing the case or by issuing an
broker, the Commission may order a             investigated by Commission Staff (Staff).       informal Staff Letter of Reprimand; (2)
complete audit of the trust account by a       The Staff may also initiate an investiga-       request additional information; or (3)
certified public accountant at the broker’s    tion upon information received by the           pursue disciplinary action against the
expense.                                       Executive Director. The fact that Staff         licensee.
   Licensee’s Duty to Cooperate. The           is conducting an investigation does not            Prior to pursuing disciplinary action,
Commission also has the authority to           mean that Staff is seeking to take action       the Executive Director will submit a
investigate the action of any Idaho li-        against a licensee.                             written report to Commission members
censee as provided in this section. The           The Staff will pursue disciplinary ac-       containing a summary of the relevant
licensee or broker shall answer all rea-       tion only where the facts revealed through                         (continued on page 5)
4-The Real Estatement                                                                                                        January 2003
                           Double Dipping
                        by Terry Ruettgers, Chief Investigator

   John was the designated broker of an      he was in violation of license law by
office with 73 agents and had enjoyed        collecting fees from two parties and
great success for the past several years.    not disclosing it in writing to both
His agents worked hard and several           parties to the transaction. Then the
had both licensed and unlicensed assis-      other shoe fell. John was also facing
tants. He was progressive enough to          another charge for “fee splitting with
realize it would be of benefit to both his   an unlicensed person” by giving this                        Terry Ruettgers
agents and the consumers who listed          fee to the transaction coordinator who
and bought property through his office,      wasn’t licensed.
if he had “transaction coordinators” to         After reviewing his closed transac-
follow up on some of the detail work         tions for the past year, the amount of
that is often “let go”.                      fees collected and not disclosed were          for the administrative action and given
   While the agents could also see the       substantial. Additionally, there were          a formal reprimand for his actions.
benefit of increased production and          several transactions where a buyer or             Transaction fees are NOT illegal;
more freedom to do what they liked to        seller had not agreed to pay this trans-       just remember if you are “double dip-
do best (sell and list property) some        action fee, but they were charged the          ping” that you need to disclose this
agents had problems with paying the          fee at closing.                                in writing to both parties, either in the
“transaction coordinator” out of their          After an administrative hearing, John       Purchase and Sale Agreement or an
commission splits.                           was required to pay a civil fine of            addendum. If you do this you won’t get
   One of John’s more progressive            $3,500, the costs and attorney’s fees          caught with your license down.
agents came up with the idea of charg-
ing a “transaction fee” to both buyers
and sellers to cover the agent’s as-
sessed costs. When he listed a prop-
                                              (Investigave from page 4)                     Staff will provide to the licensee the
erty, the agent disclosed there would be
a $175 transaction fee charged in addi-                                                     option to informally resolve the matter
tion to the brokerage fee. Likewise,          facts determined through the investiga-       through stipulation, without the com-
when he was working with a buyer,             tion, and a summary of the alleged            mencement of formal administrative pro-
                                              violations of law. This report will not       ceedings. The letter will also describe
either as an agent for the buyer or a
                                              contain the parties’ names, locations or      the licensee’s right to formal hearing.
non-agent he would have them agree in
                                              other identifying information.                The licensee will be given a set period of
writing to a transaction fee of $175.
                                                 The Commission will review the re-         time within which to advise the Staff on
   While some sellers and buyers had
                                              port to determine whether the facts are       how he or she desires to proceed.
objected to this, most seemed to just
                                              sufficient to pursue an action against the        At any time during the investigation
assume it was a normal fee that was
                                              licensee. If the Commission determines        or hearing process of the Commission,
charged to everyone, and they went
                                              that the facts are insufficient, no disci-    a licensee may seek legal advice from an
along with it.
                                              plinary action will be taken. The com-        attorney. The Commission strongly rec-
   Other agents in John’s office started      plainant and the responding licensee will     ommends that a licensee consult with
charging the fee to their sellers and         be notified in writing of this “no action”    an attorney upon receipt of any notice
buyers, until it seemed most of the           determination.                                indicating that disciplinary action is be-
agents were doing it. John was very              If, however, the Commission deter-         ing pursued.
aware of the fee being charged since          mines the facts in the report are suffi-          On occasion the Executive Director
he reviewed the listings, represen-           cient to proceed with a formal disciplin-     may resolve matters informally when it
tation, and compensation agree-               ary action, the Commission will autho-        is determined that the law would best be
ments as they came in.                        rize the Staff to pursue formal disciplin-    served by a conference to correct the
   Since the fee was disbursed straight       ary proceedings.                              problem. Because an “Informal In-
from the title company to his commis-            In that event, the licensee will receive   quiry” may lead to a decision on the part
sion account and then to the “transac-        a written notice from the Staff summa-        of the Executive Director to pursue
tion coordinator”, John felt that things      rizing the facts revealed by the investi-     formal disciplinary action, a licensee
were working very smoothly.                   gation and the violations that the Staff      may be represented by counsel during
   That was until the Commission au-          believes occurred. Within the letter the      this inquiry as well.
dited him and the Inspector told him that
January 2003                                                                                                   The Real Estatement-5
                                      Continuing Education!
Check out the Real Estate Commission’s web site for a great new resource!

Recently revised, the web site helps to answer many of the recurring questions we’ve received regarding CONTINUING
EDUCATION. The web site also guides the licensee through the requirement and the various choices of how to meet the
continuing education requirement. Please take a moment to discover this great resource: http://

As always, if there are any questions or comments about the CE program, feel free to contact our office!

6-The Real Estatement                                                                                      January 2003
       Continuing Education Audit Update
                        By Jill Randall, Education Director

   It has been six months since the         mission achieve its goal of 100%
Commission enacted its policy of re-        compliance.
quiring the renewing licensee to certify       Read your renewal application. It
that he or she meets all qualifications     says “I certify under penalty of perjury
for renewal, including completion of        that I have taken and completed these
approved continuing education. Sub-         continuing education courses listed
mission of the renewal application with     above as required by the Idaho Real
that certification will result in the       Estate License Law and Rules. I fur-                       Jill Randall
Commission’s reliance on the certifica-     ther certify that I have obtained Errors
tion and the renewed license will be        & Omissions Insurance as required by
issued. The Commission then selects         law. I agree to furnish to the Idaho Real
renewed licensees to verify the comple-     Estate Commission, upon request, suf-        2002. None of the continuing education
tion of the clock hours as certified for    ficient evidence of having completed         taken for the September 2000 renewal
the issuance of the renewed license.        these requirements...”                       can be counted for the 2002 renewal,
   During the first 4 months, we audited       Check your course certificates be-        even though some of the courses were
151 renewed licensees and, of that          fore renewing. By submitting your re-        completed within the 2000-2002 license
number, 9 licensees were found to have      newal application, you are telling the       term. The courses completed before
not completed the continuing education      Commission that you have met all the         the license was last renewed on Octo-
as they certified to on the renewal         requirements for renewal on that date;       ber 1st cannot be double-counted for
application. These licensees face sanc-     not that you may be registered to take       the 2002 renewal.
tions ranging from a Staff Letter of        some courses or that you have returned          Most Importantly...
Reprimand and Civil Penalty to license      a distance education course examina-            DO NOT submit your license re-
revocation and Civil Penalty.               tion for scoring, but rather that you have   newal application until you have
   The underlying conduct in these cases    actually completed the courses, includ-      checked each course certificate to en-
has included failing to complete the        ing the current Core Course, and that        sure that the courses are valid toward
current Core Course, submitting certifi-    you have in your possession the course       your current renewal, that you have
cates for courses used to renew two         certificates to verify the certification     completed the core course and that you
years ago, miscalculating the number of     statement on the date you mail your          have completed the minimum hours
clock hours earned, returning distance      renewal application.                         required for renewal.
education courses for scoring but not          Complete the required Core Course.
receiving certificates verifying comple-    The Commission has always required
tion at time of renewal and registering     completion of the Core Course for re-
for courses but not completing the          newal. The Commission updates the
courses. Regardless of the underlying       Core Course each July to ensure that
reason, the fact is that the licensee had   the course is timely and meaningful.
not completed the approved continuing       The Core Course contains Case Law,
education as the licensee certified for     Legislative Update, and Hot Topics.
the issuance of the renewed license. As        Know the dates your continuing edu-
                                                                                                In Memory...
evidenced by the actions reported above,    cation is valid. If you renew your li-         The Idaho Real Estate Commission
the Commission has established a zero-      cense late, remember that any continu-
                                                                                           extends their sympathies to the fami-
tolerance policy for such conduct and       ing education completed for that re-
                                                                                           lies of:
will impose sanctions for such conduct.     newal may not be used for the next
   The good news is that the majority of    renewal cycle. For example, a licensee            C. Blaine Breckon, Nampa
licensees responding to the audit had       was last due for renewal on September          Jimmie David Ferguson, Nampa
completed the approved continuing edu-      30, 2000, but did not complete all the           Clinton Parkinson, Orem, UT
cation as they had certified to on the      continuing education hours until Octo-          Maricela Rodriguez, Caldwell
renewal application. The Commission’s       ber 1, 2000, at which time, he renewed                Patsy Spiker, Boise
expectation is 100% compliance.             his license late. The license is now due
                                                                                             Ronald K. Vaughn, Emmett
   What you can do to help the Com-         for renewal again on September 30,

January 2003                                                                                              The Real Estatement-7
                         Licensing Update
                      By Neal Bernklau, Licensing Supervisor

       ERRORS & OMISSIONS                      Under the new contract, the insur-
        INSURANCE UPDATE                    ance company, RISC, will be collecting
   Effective October 1, 2002, a new         the premiums for the group policy and
process called E&O Self-Certification,      they will download the information to
was created for E&O insurance. On all       the Commission’s database. Licensees
renewals and change forms submitted         should contact RISC directly at 1-800-
to the Commission office the licensee       637-7319 for questions regarding E&O
must certify that they have and will        insurance. The group policy has an                         Neal Bernklau
continue to maintain E&O insurance          annual renewal, therefore, ALL
while they hold an active license. The      group E&O insurance policies will
licensee must keep proof that they have     expire October 1, 2003.
insurance and submit it to the Commis-         The Commission staff has also
sion upon request.                          changed the administrative process for           ♦ Renew license up to 90 days
   Also on October 1, 2002, Medmarc         independently obtained E&O insurance.              early
Insurance Company, through Rice In-         Offices are no longer required to submit        ♦ Renew late license (up to one
surance Services Company, LLC               annual Certificates of Coverage for                year from license expiration
(RISC), entered into a new E&O insur-       each licensee. The only time that a                date)
ance contract. All licensees were mailed    Certificate must be submitted is when           ♦ Print renewed license
notification by RISC the first two weeks    specifically requested for compliance           ♦ Search our Licensee database
of August notifying them of the changes     review purposes.
                                                                                               in “real time” by Last Name,
in the E&O program. As of October
                                                                                               First Name, Company Name,
16, 2002, there were 750 licensees                 NEW ON-LINE SERVICE
that had not purchased E&O insur-             On October 1, 2002, the Commission               City, County, or by more than
ance. Idaho Code 54-2013 requires           and Access Idaho activated the ex-                 one search criteria
that all active licensees maintain E&O      panded online services internet portal.      Brokers can:
insurance either by the group contract      With this upgraded service, licensees           ♦ Add or remove associates from
or an independently obtained policy.        can:                                               their office
   For those who did not renew, if you           ♦ Change personal address                  ♦ Change address of the office(s)
have been identified as practicing real          ♦ Register for IREC sponsored              ♦ Change the name of the office
estate without E&O insurance, there                 courses                                 ♦ Print licenses for new associ-
will be a civil penalty fine ranging from
                                                 ♦ Change personal name                        ates
$50 to $250 and your license will be
inactivated.                                     ♦ Review posted education                  ♦ Print duplicate licenses

    Lewis County Planning & Zoning Requires Building Permits
                                by Ron Werhan, Lewis County Planning & Zoning Coordinator

   Lewis County requires building per-      permit. Upon notifying the property          permit is issued, a property owner also
mits and every county requires an elec-     owner, he stated that his Lewiston RE-       needs a septic permit from the Health
trical permit for a residence. A recent     ALTOR® had told him when he re-              Deptartment          Following       this
situation follows that makes it crucial     cently purchased this property that          REALTOR®’s direction, this new prop-
that all REALTORS® understand each          Lewis County did not require building        erty owner has major costly corrections
county’s requirements.                      permits and that is why he chose to          and replacements to be completed be-
   Lewis County Planning & Zoning           purchase in Lewis County rather than         fore his septic system, already installed,
Department came upon an interesting         Nez Perce County. The owner also             meets code and he can apply for a
situation recently when one of our county   stated that he has it in writing from this   building permit for his residence that is
employees was on tour of a section of       Lewiston REALTOR® that a building            almost completed. He is not a “happy
Lewis County and discovered a build-        permit was not required.                     camper”!
ing being erected without a building           As you well know, before a building

8-The Real Estatement                                                                                                  January 2003
        Course Schedules                                 January - June 2003
                                                  Sales Prelicense
A total of 90 hours of approved real estate education is required for a salesperson’s license. Specific information concerning
education requirements for licensure can be found in the Idaho Real Estate License Manual. To register for a course, contact the
provider. See last page of course schedule for a list of providers.
Essentials of Real Estate (45 hours)
Intended for the beginner in real estate who has little, if any, previous knowledge in the field. A solid core of fundamental
concepts will be studied. This course partially fulfills the educational requirements for a salesperson’s license.
Dates                             Time                    Provider             Location                Cost         Instructor
Correspondence (Fin C201 Fund. of Real Estate)            U of I/IS            N/A                     $300         Loegering
Correspondence (RE305x 3 credits RE Essentials)           WSU                  N/A                     $495         Crellin
On-line (Real Estate & Urban Economics)                   UofWy                N/A                     $420         Sunderman
Jan. 6-10, 13                     8am-5pm                 Pioneer              Boise                   $275         Byers
Jan. 6-16                         9am-6pm                 NIC                  Post Falls              $249         Hatch
Jan. 6-Feb. 12                    6pm-10pm                Pioneer              Boise                   $275         Jonas
Jan. 8-10, 13-15                  8am-5pm                 AREC                 Boise                   $275         Heist
Jan. 13-May 15                    6pm-9pm                 BSU                  Boise                   $450         Loegering
Jan. 14-March 16                  7am-10pm                EITC                 Idaho Falls             TBA          TBA
Jan. 15-17, 29-31                 8am-5pm                 CSI                  Twin Falls              $333         Brawley
Jan. 21-Mar. 11                   6pm-9pm                 BSU-WFT              Nampa                   $275         TBA
Feb. 3-7, 10                      8am-5pm                 Pioneer              Boise                   $275         Byers
Feb. 5-7, 10-12                   8am-5pm                 AREC                 Boise                   $275         Heist
Feb. 17-Mar. 26                   6pm-10pm                Pioneer              Boise                   $275         TBA
Mar. 3-7, 10                      8am-5pm                 Pioneer              Boise                   $275         Byers
Mar. 3-11                         9am-6pm                 NIC                  Post Falls              $249         Hatch
Mar. 3-15                         6pm-10pm                ISU                  Pocatello               $215         Johnston
Mar. 5-7, 10-12                   8am-5pm                 AREC                 Boise                   $275         Heist
Mar. 17-19, 24-26                 8am-5pm                 CSI                  Hailey                  $333         Heist
Mar. 19-21, 26-28                 9am-6pm                 LCSC                 Lewiston                $230         Aubertin
Mar. 31, Apr. 1-4, 7              8am-5pm                 Pioneer              Boise                   $275         Byers
Mar. 31-May 7                     6pm-10pm                Pioneer              Boise                   $275         Jonas
Apr. 2-4, 7-9                     8am-5pm                 AREC                 Boise                   $275         Heist
Apr. 23-25, 28-30                 8am-5pm                 AREC                 Boise                   $275         Heist
Apr. 28-30, May 1, 2, 5           8am-5pm                 Pioneer              Boise                   $275         Byers
Apr. 29-May 6                     9am-6pm                 NIC                  Post Falls              $249         Hatch
June 2-6, 9                       8am-5pm                 Pioneer              Boise                   $275         Byers
June 4-6, 9-11                    8am-5pm                 AREC                 Boise                   $275         Heist
Real Estate Practices (45 hours)
Designed for the real estate student who has a basic understanding of the fundamental concepts of real estate. Completion of
Practices and its prerequisite course will satisfy the educational requirements for a salesperson’s license. Prerequisite:
Essentials of Real Estate.
Dates                              Time                   Provider             Location                Cost        Instructor
Jan. 7-Feb. 13                     6pm-10pm               Pioneer              Boise                   $275        Townsend
Jan. 14-17, 20-21                  8am-5pm                Pioneer              Boise                   $275        Byers
Jan. 16-17, 20-23                  8am-5pm                AREC                 Boise                   $275        Heist
Feb. 3-11                          9am-6pm                NIC                  Post Falls              $249        Hatch
Feb. 11-14, 17-18                  8am-5pm                Pioneer              Boise                   $275        Byers
Feb. 13-14, 17-20                  8am-5pm                AREC                 Boise                   $275        Heist
Feb. 18-Mar. 27                    6pm-10pm               Pioneer              Boise                   $275        Townsend
Mar. 11-14, 17-18                  8am-5pm                Pioneer              Boise                   $275        Byers
Mar. 13-14, 17-20                  8am-5pm                AREC                 Boise                   $275        Heist
Mar. 18-May 13                     6pm-9pm                BSU-WFT              Nampa                   $275        TBA
Mar. 20-29                         8am-5pm                EITC                 Idaho Falls             TBA         TBA
Apr. 1-May 8                       6pm-10pm               Pioneer              Boise                   $275        Learned
Apr. 2-4, 9-11                     9am-5pm                LCSC                 Lewiston                $230        Aubertin
Apr. 7-9, 16-18                    8am-5pm                CSI                  Hailey                  $333        Clifton
Apr. 7-18                          8am-1pm                ISU                  Pocatello               $215        Galloway
Apr. 7-9, 12, 14-15                9am-6pm                NIC                  Post Falls              $249        Hatch
Apr. 7-9, 14-16                    8am-5pm                CSI                  Twin Falls              $333        Brawley
Apr. 8-11, 14-15                   8am-5pm                Pioneer              Boise                   $275        Byers
Apr. 10-11, 14-17                  8am-5pm                AREC                 Boise                   $275        Heist
May 1-2, 5-8                       8am-5pm                AREC                 Boise                   $275        Heist
May 6-9, 12-13                     8am-5pm                Pioneer              Boise                   $275        Byers
May 13-June 19                     6pm-10pm               Pioneer              Boise                   $275        Tracy
June 2-10                          9am-6pm                NIC                  Post Falls              $249        Hatch
June 10-13, 16-17                  8am-5pm                Pioneer              Boise                   $275        Byers
June 12-13, 16-19                  8am-5pm                AREC                 Boise                   $275        Heist
January 2003                                                                                                The Real Estatement-9
                                                 Broker Courses
Four additional courses of at least 90 hours of advanced approved real estate education is required for a broker’s license.
Specific information concerning educational requirements for licensure can be found in the Idaho Real Estate License Manual. To
register for a course, contact the provider. These courses are also approved for elective continuing education credit.

Alternative Finance (20 hours)
Elective course for broker’s license. Designed as an introduction to creative financing. It examines why “creative” financing
is necessary. Included is a discussion of “tools” for creative financing and how they are used.
Date                               Time                  Provider             Location                Cost         Instructor
May 9-10, 12                       9am-6pm               NIC                  Post Falls              $195         Hatch
Areas of Real Estate Specialization (30 hours)
Elective course for broker’s license. For the Graduate, REALTORS® Institute (GRI) designation. The GRI program is designed
to educate and train persons in the residential real estate brokerage business in which their primary activity is the brokering
of single-family home ownership property. required. Contact the Idaho Association of REALTOR® for more information
regarding the GRI designation requirement.
Date                               Time                  Provider             Location                Cost         Instructor
Feb. 3-4 (Module 1)                8am-5pm               IAR                  Boise                   TBA          Various
Feb. 5-6 (Module 2)                8am-5pm               IAR                  Boise                   TBA          Various
May 8-9 (Module 1)                 8am-5pm               IAR                  Coeur d’Alene           TBA          Various
Brokerage Management (30 hours)
Required course for broker’s license. Intended to help a person understand how to set up and run a real estate brokerage
office and emphasizes the application of management techniques required for the brokerage operation.
Date                               Time                  Provider           Location               Cost          Instructor
Feb. 24-27                         8am-5pm               Pioneer            Boise                  $250          Jonas
Mar. 28-29, Apr. 4-5               9am-6pm               NIC                Post Falls             $249          Albi
May 1-2, 8-9                       8am-5pm               CSI                Twin Falls             $255          Brawley/Briggs

Finance (30-45 hours)
Elective course for a broker’s license. Designed as an introduction to real estate financing and includes a study of the sources
and application of funds, the financial instruments commonly used, institutional structures and policies, and loan processing.
Each student must be familiar with a financial calculator prior to enrolling.
Date                               Time                  Provider             Location                Cost         Instructor
Correspondence (BUS C262)                                UofI-ISO                                     $300         Hatch
On-Line                                                  U of WY                                      $420         Sunderman
Jan. 27-30                         8am-5pm               IAR                  Coeur d’Alene           TBA          Clifton
Feb. 13-14, 20-21                  8am-5pm               CSI                  Twin Falls              $255         Clifton
June 23-26                         8am-5pm               Pioneer              Boise                   $250         Clifton
Law (30-45 hours)
Required course for broker’s license. Designed for the real estate professional as a course in the general principles of law
governing the interest in real estate, and to acquaint the student with how the law works, but is not intended to be a substitute
for competent legal counsel.
Date                               Time                  Provider             Location                Cost         Instructor
Correspondence (Bus 263)                                 UofI-ISO             Moscow                  $300         Felton
Jan. 28-31                         8am-5pm               Pioneer              Boise                   $295         Justin May
Mar. 6-7, 13-14                    8am-5pm               CSI                  Twin Falls              $255         J Dee May

Valuation and Analysis (30-45 hours)
Elective course for a broker’s license. An introductory course covering the purpose of appraisals, the appraisal process and
the different approaches, methods, and techniques used to determine the value of various types of property.
Date                               Time                  Provider             Location                Cost         Instructor
Mar. 22-23, 29-30                  8am-5pm               EITC                 Idaho Falls             TBA          TBA
Apr. 10-11, 17-18                  8am-5pm               CSI                  Twin Falls              $255         Nelson
Apr. 22-25                         8am-5pm               Pioneer              Boise                   $295         Nelson

                                                   Other Courses
Business Conduct & Office Operations (4 hours)
Designed for brokers, sales associates, secretaries, bookkeepers, and other related personnel, this course acquaints them with
the current laws, rules and procedures governing the handling of client funds, brings participants up-to-date on changes in
the laws, rules and procedures governing the handling of client funds, and assists real estate firms in developing good record
keeping and business practices. This course is approved for elective continuing education credit.
Date                               Time                  Provider             Location                Cost         Instructor
Correspondence                                           IREC                 n/a                     $20          Staff
Jan. 9                             9:30am-1:30pm         IREC                 Nampa                   $20          Mesaros
10-The Real Estatement                                                                                              January 2003
Business Conduct & Office Operations (continued)
Date                                Time                   Provider             Location                 Cost         Instructor
Jan. 24                             8:30am-12:30pm         AREC                 Boise                    $35          Heist
Mar. 26                             8:30am-12:30pm         AREC                 Boise                    $35          Heist
May 12                              8:30am-12:30pm         AREC                 Boise                    $35          Heist
June 20                             8:30am-12:30pm         AREC                 Boise                    $35          Heist

Train the Trainer Workshop (various hours)
A fun, informative and practical workshop designed for real estate office trainers, certified real estate instructors, or anyone
who wants to improve their adult teaching skills. Course provider and workshop administrators are also encouraged to attend.
Date                               Time                 Provider              Location                  Cost           Instructor
May 13-14                          8am-5pm              IREC                  Boise                     $100           TBA
June 22-25 (REEA Annual Conference)                     REEA                  Philadelphia, PA          TBA            Various

                                             Continuing Education
These courses are intended to keep the licensee abreast of changes in the real estate profession. There are Core Courses that
all licensees are required to take and elective courses that the licensee may take in their particular field or one of interest. See
the CE Information page for more information about these courses.

Distance Learning
Name                                                  Hours                   Provider     Cost              Instructor
ADA & Fair Housing (on-line)                          4                       REWeb        $45               LaMere
Business Conduct & Office Operations (correspondence) 4                       IREC         $20               Staff
Buyer Brokerage (Video or Audio)                      4                       IREC         $15               Staff
Buyer Representation in Real Estate (on-line)         6                       CEOO         $45               Myers
Consensual Dual Agency (on-line)                      4                       REWeb        $45               LaMere
Environmental Issues in Your RE Practice (on-line)    6                       CEOO         $45               Myers
Ethics in Real Estate (on-line)                       4                       REWeb        $45               LaMere
Ethics in Real Estate (on-line)                       6                       CEOO         $45               Myers
Intro to Commercial Real Estate Sales (on-line)       6                       CEOO         $45               Myers
Property Management & Managing Risk (on-line)         6                       CEOO         $45               Myers
Real Estate Math (on-line)                            4                       REWeb        $45               LaMere
Real Estate & Taxes (on-line)                         6                       CEOO         $45               Myers
Red Flags: Property Inspection Guide (on-line)        6                       CEOO         $45               Myers
CE Core (Video or Audio)                              4                       IREC         $15               Staff

Live Courses
Course Name                                                Hrs   Dates        Provider     Location          Cost     Instructor
CE Core                                                    4     Jan. 6       AREC         Boise             $35      Heist
Buyer Brokerage                                            4     Jan. 6       AREC         Boise             $35      Heist
Cracking the Code-Understanding the Code Ethics            4     Jan. 7       AREC         Boise             $35      Heist
Business Conduct & Office Operations                       4     Jan. 9       IREC         Nampa             $20      Mesaros
CE Core                                                    4     Jan. 9       NIC          Post Falls        $39      Hatch
RE Broker/Salesperson Liabilities                          4     Jan. 10      NIC          Post Falls        $39      Albi
Commission Meeting                                         3     Jan. 16      IREC         Boise             $0       N/A
Investment Real Estate Workshop                            12    Jan. 22-23   IAR          Boise             $149/179 Still
Buyer Brokerage & Red Flags: Property Inspection           8     Jan. 22      Pioneer      Boise             $65      Byers
CE Core                                                    4     Jan. 23      Pioneer      Boise             $45      Byers
Business Conduct & Office Operations                       4     Jan. 24      AREC         Boise             $35      Heist
Buyer Brokerage                                            4     Jan. 29      AREC         Boise             $35      Heist
CE Core                                                    4     Jan. 29      AREC         Boise             $35      Heist
Cracking the Code-Understanding Code of Ethics             4     Jan. 30      AREC         Boise             $35      Heist
CE Core                                                    4     Jan. 30      AREC         Boise             $35      Heist
Fair Housing, ADA, & Real Estate Agents                    4     Feb. 5       NIC          Post Falls        $39      Hatch
CE Core                                                    4     Feb. 6       NIC          Post Falls        $39      Hatch
RE Broker/Salesperson Liabilities                          4     Feb. 10      NIC          Sandpoint         $39      Albi
CE Core                                                    4     Feb. 10      NIC          Sandpoint         $39      Albi
Understanding & Using Real Estate Contracts                4     Feb. 11      NIC          Sandpoint         $39      Albi
Buyer Brokerage & Red Flags: Property Inspection           8     Feb. 19      Pioneer      Boise             $65      Byers
CE Core                                                    4     Feb. 20      Pioneer      Boise             $45      Byers
Commission Meeting                                         3     Feb. 20      IREC         Boise             $0       N/A
CE Core                                                    4     Feb. 20      IAR          Ketchum           $TBA TBA
Cracking the Code-Understanding Code of Ethics             4     Feb. 20      IAR          Ketchum           $TBA TBA
Buyer Brokerage                                            4     Feb. 24      AREC         Boise             $35      Heist
CE Core                                                    4     Feb. 24      AREC         Boise             $35      Heist
CE Core                                                    4     Feb. 25      AREC         Boise             $35      Heist
Cracking the Code-Understanding Code of Ethics             4     Feb. 25      AREC         Boise             $35      Heist
January 2003                                                                                                The Real Estatement-11
  Continuing Education Courses (Continued)
  Name                                                   Hrs     Dates     Provider   Location     Cost   Instructor
  CE Core                                                4       Mar. 13   NIC        Post Falls   $39    Hatch
  Understanding & Using Real Estate Contracts            4       Mar. 14   NIC        Post Falls   $39    Albi
  Buyer Brokerage & Red Flags: Property Inspection       8       Mar. 19   Pioneer    Boise        $65    Byers
  CE Core                                                4       Mar. 20   Pioneer    Boise        $45    Byers
  Commission Meeting                                     3       Mar. 20   IREC       Boise        $0     N/A
  CE Core                                                4       Mar. 24   AREC       Boise        $35    Heist
  Buyer Brokerage                                        4       Mar. 24   AREC       Boise        $35    Heist
  CE Core                                                4       Mar. 25   AREC       Boise        $35    Heist
  Cracking the Code-Understanding Code of Ethics         4       Mar. 25   AREC       Boise        $35    Heist
  Business Conduct & Office Operations                   4       Mar. 26   AREC       Boise        $35    Heist
  CE Core                                                4       Apr. 10   NIC        Post Falls   $39    Hatch
  RE Broker/Salesperson Liabilities                      4       Apr. 11   NIC        Post Falls   $39    Albi
  Buyer Brokerage & Red Flags: Property Inspection       8       Apr. 16   Pioneer    Boise        $65    Byers
  CE Core                                                4       Apr. 17   Pioneer    Boise        $45    Byers
  Commission Meeting                                     3       Apr. 17   IREC       Boise        $0     N/A
  CE Core                                                4       Apr. 21   AREC       Boise        $35    Heist
  Buyer Brokerage                                        4       Apr. 21   AREC       Boise        $35    Heist
  CE Core                                                4       Apr. 22   AREC       Boise        $35    Heist
  Cracking the Code-Understanding Code of Ethics         4       May 1     IAR        Ketchum      $TBA   TBA
  CE Core                                                4       May 1     IAR        Ketchum      $TBA   TBA
  CE Core                                                4       May 1     NIC        Post Falls   $39    Hatch
  Fair Housing, ADA, & Real Estate Agents                4       May 1     NIC        Post Falls   $39    Hatch
  Understanding & Using Real Estate Contracts            4       May 2     NIC        Post Falls   $39    Albi
  CE Core                                                4       May 7     NIC        Sandpoint    $39    Hatch
  Business Conduct & Office Operations                   4       May 12    AREC       Boise        $35    Heist
  CE Core                                                4       May 15    AREC       Boise        $35    Heist
  Buyer Brokerage                                        4       May 15    AREC       Boise        $35    Heist
  Commission Meeting                                     3       May 15    IREC       Boise        $0     N/A
  Buyer Brokerage & Red Flags: Property Inspection       8       May 15    Pioneer    Boise        $65    Byers
  CE Core                                                4       May 16    Pioneer    Boise        $45    Byers
  CE Core                                                4       May 16    AREC       Boise        $35    Heist
  Fair Housing, ADA, & Real Estate Agents                4       June 11   NIC        Post Falls   $39    Hatch
  CE Core                                                4       June 11   NIC        Post Falls   $39    Hatch
  Understanding & Using Real Estate Contracts            4       June 13   NIC        Post Falls   $39    Albi
  Buyer Brokerage & Red Flags: Property Inspection       8       June 18   Pioneer    Boise        $65    Byers
  CE Core                                                4       June 19   Pioneer    Boise        $45    Byers
  Commission Meeting                                     3       June 19   IREC       Boise        $0     N/A
  Business Conduct & Office Operations                   4       June 20   AREC       Boise        $35    Heist
  CE Core                                                4       June 25   AREC       Boise        $35    Heist
  Buyer Brokerage                                        4       June 25   AREC       Boise        $35    Heist
  CE Core                                                4       June 26   AREC       Boise        $35    Heist

                 Who to Contact: Course Providers
  Provider Name                              Contact                Phone Number
  Academy for Real Estate Careers (AREC)     Gail Heist             208-377-9247
  Boise State University (BSU)               Sue Ellis              208-426-3356
  Boise State University WFT (BSU-WFT)       Craig Hoyt             208-426-1860
  BYU-Idaho (BYU)                            Larry B. Wickham       208-496-1040
  College of Southern Idaho (CSI)
  Continuing Ed (CEOO)
                                             Penny Johnson
                                             Steve Myers
                                                                                          It is highly
  Department of Veterans Affairs (VA)
  Eastern Idaho Technical College (EITC)
                                             Bruce Newton
                                             Ken Erickson
  Idaho Association of REALTORS® (IAR)       Shelby Kerns           208-342-3585
  Idaho Real Estate Commission (IREC)        Jill Randall           866-447-5411           that you
  Idaho State University (ISU)               Margaret Phelps        208-282-3372
  Lewis-Clark State College (LCSC)           Rock-el Clanton        800-879-0452         complete the
  National Assoc. of REALTORS® (NAR)         Constance Leahy        800-874-6500
  North Idaho College (NIC)
  Pioneer Real Estate School (Pioneer)
                                             Susie McDonald
                                             Chuck Byers
                                                                                         Core course (REWeb)
  Tomlinson Black RE School (TBRES)
                                             A. Allen Nielsen
                                             Jim Carollo
                                                                    800-735-2388          each year!
  Treasure Valley Community College (TVCC)   Mike Woodhead          541-889-6493
  University of Idaho (Uof I/IS)             Independent Study      208-885-6641
  University of Wyoming (UofW)               Mark Sunderman         307-766-4199
  Walla Walla Community College (WWCC)       Jane Carroll           509-758-3339
  Washington State University (WSU)          Robin Stratton         509-335-3557
12-The Real Estatement                                                                                    January 2003
                                              Disciplinary Actions
   Formal actions issued by the Idaho         Agreement. Given a formal reprimand;           revocation suspended provided he com-
Real Estate Commission:                       ordered to pay a civil fine of $500; and       plies in a timely manner to terms of the
   Bolan, Robert G. “Bud”, designated         required to pay the costs and attorney’s       Final Order; must have a CPA reconcile
broker with Hailey Realty, Inc., in Hailey.   fees.                                          his trust account within 30 days; must
Stipulated to violations of Idaho Code           Dyrud, Beverly “Jane”, associate            repay any shortage within the 30 days;
sections 54-2045(1) timing of deposit;        broker with Mountain Lakes Realty in           must provide monthly reconciliation
54-2060(2) and (3) continuing course of       McCall. Stipulated to violations of Idaho      within 7 days of receiving his bank state-
misrepresentation or making of false          Code sections 54-2051(4)(a) failure to         ment; is required to pay a civil fine of
promises and failure to account for or        have signatures dated; 54-2060(2) con-         $1,500 and costs and attorney’s fees;
remit property. Given a formal repri-         tinued or flagrant course of misrepre-         and is required to successfully complete
mand; ordered to pay a civil fine of          sentation; and 54-2060(12) gross negli-        a live Business Conduct and Office Op-
$1,500; and costs and attorney’s fees.        gence or reckless conduct. Given a for-        erations course and Brokerage Manage-
   Budge, Richard W., sales associate         mal reprimand; ordered to pay a $5,000         ment Course. Date of service: 03/28/02.
with Assist 2 Sell Buyers and Sellers         civil fine; required to pay costs and          05/02/02: License revoked for failure
Realty in Meridian. Stipulated to viola-      attorney’s fees; and required to success-      to comply with terms of the Final
tions of 54-2054(5) Idaho Code for use        fully complete a Real Estate Law course.       Order.
of double contract; and 54-2045(4) fail-         Kreps, Kevin R., sales associate with          Smock, Donald R., designated bro-
ure to surrender a promissory note to the     Windermere Nampa/Caldwell in Nampa.            ker for Windermere Coeur d’Alene Re-
broker. Given a formal reprimand; or-         Real estate license revoked under section      alty Inc., in Coeur d’ Alene. Stipulated to
dered to pay a civil fine of $2,500;          54-2019(1) and (2) Idaho Code, granting        violations of Idaho Code sections 54-
required to pay costs and attorney’s          a license to him is not in the best interest   2038(1)(a)(b) and 54-2048 for failure to
fees; required to successfully complete a     of the citizens of Idaho.                      supervise; and 54-2060(4) failure to keep
Real Estate Law course.                          Mayes, Blake, designated broker with        adequate records. Given a formal repri-
   Butler, Dane A., inactive salesper-        RE/MAX Capital City in Boise. Stipulated       mand; required to pay $1,000 civil fine;
son, previously associated with Coldwell      to violations of Idaho Code sections 54-       and costs and attorney’s fees.
Banker Aspen Realty in Boise. Stipulated      2051(4) for not having all required terms         Swehosky, Barbara H., salesperson
to violations of section 54-2061(1)(a)        and conditions in the Purchase & Sale          with Century 21 Beutler & Associates in
Idaho Code for conviction of a felony.        Agreement; and 54-2038(1) failure to           Coeur d’Alene. Stipulated to violation of
Real estate license revoked, but license      supervise. Given a formal reprimand;           section 54-2087(3)(d) Idaho Code, fail-
placed in suspended status, during the        ordered to pay a civil fine of $500; and to    ure to conduct a reasonable investigation
period of court ordered probation. Re-        pay the costs and attorney’s fees.             of the property for a client. Given a
quired to pay all license renewal fees           Mulick, Lani Ann, formerly the des-         formal reprimand; required to pay a civil
during this suspended period. License         ignated broker with Code of the West in        fine of $1,000; and costs and attorney’s
may be reactivated after completion of        Idaho Falls and currently with Sun Land        fees.
probation and dismissal of underlying         Investments, Inc., in Bellevue. Stipu-            Wells, Ranford A. “Randy”, sales
charges by the court, but must complete       lated to violations of rule 415 and section    associate with Windermere Coeur d’Alene
current continuing education and have         54-2060(10) Idaho Code for failure to          Realty, Inc., in Coeur d’Alene. Stipulated
paid his costs and attorney’s fees. If he     supervise; and section 54-2060(4) fail-        to violations of Idaho Code sections 54-
violates his probation, his real estate       ure to keep adequate records. Given a          2053(4) misleading advertising; 54-
license is revoked immediately. Required      formal reprimand; ordered to pay a civil       2085(1) disclosure and writing require-
to pay costs and attorney’s fees in the       fine of $1,000; and required to pay costs      ments of agency relationships; 54-2045(4)
amount of $724.22.                            and attorney’s fees.                           consideration received by a sales associ-
   Carlson, Jeffrey, inactive salesper-          Price, Robert Scott, salesperson, for-      ate; and 54-2060(4) failure to keep ad-
son, formerly associated with RE/MAX          merly associated with Gate City GMAC           equate records. Given a formal repri-
Nampa/Caldwell in Nampa. Stipulated to        in Pocatello. Stipulated to 54-2061(1)(a)      mand; required to pay a $1,500 civil fine;
violations of Idaho Code sections 54-         Idaho Code, conviction of a felony. His        and costs and attorney’s fees.
2060(3) failure to account for property       real estate license was revoked.                  Wiegand, Diane E., designated bro-
belonging to others; and 54-2060(12)             Sleezer, Marty M., designated bro-          ker for Mountain Lakes Realty in McCall.
reckless conduct. Given a formal repri-       ker with Total Realtors in Wallace. Stipu-     Stipulated to violations of Idaho Code,
mand; ordered to pay a civil fine of $750;    lated to violations of Idaho Code sections     sections 54-2045(1) failure to deposit
and costs and attorney’s fees.                54-2060(3) failure to account for prop-        earnest money; 54-2041(2) failure to care
   Christianson, Jeffrey L., sales as-        erty which belongs to another; 54-             for earnest money by returning to the
sociate with RE/MAX Capital City in           2086(1)(c) duties to a customer to ac-         buyer prior to withdrawal of the offer;
Boise. Stipulated to violations of Idaho      count for property of a customer; 54-          54-2050 allowing an agent under her
Code sections 54-2045(4) not immedi-          2060(12) reckless conduct; 54-2044 fail-       supervision to use an expired Seller Rep-
ately delivering earnest money to his         ure to reconcile; 54-2060(4) failure to        resentation Agreement; and 54-
broker; and 54-2051(4) (a)(b)(c)(d) to        keep adequate records; and 54-2060(5)          2038(1)(a) and (b) failure to supervise
make certain all required terms and con-      failure to respond. Given a formal repri-      and review documents. Given a formal
ditions are part of the Purchase & Sale       mand; real estate license revoked, but                            (continued on page 14)

January 2003                                                                                                  The Real Estatement-13
(Disciplinary from page 13)                        Civil penalty fine of $50.                      Mickelson, Mary L., sales associate
                                                      Clark, Thomas D., associate broker        with Windermere Real Estate/Sun Valley
reprimand; ordered to pay a civil fine of          with Century 21 1st Place Realty in Boise.   LLC in Hailey. Civil penalty fine of $50.
$1,500; and costs and attorney’s fees.             Civil penalty fine of $50.                      Middleton, William C., sales associ-
   Yearsley, Grant L., sales associate                Clements, Maurice L., sales associ-       ate with First Service Group Real Estate
with Valley Real Estate in Garden Valley.          ate with Brandt Agency in Nampa. Civil       in Boise. Civil penalty fine of $300.
Stipulated to violations of Idaho Code             penalty fine of $50.                            Morelan, Jerry H., sales associate
sections 54-2060(12) reckless conduct                 Cogdill, Creighton L., sales associ-      with Wolfinger Land & Auction Co. in
in a regulated transaction; 54-2053(4)             ate with ERA West Wind in Boise. Civil       Grangeville. Civil penalty fine of $100.
misleading advertising; 54-2051(2)(4)(a-           penalty fine of $50.                            Nahas, Robert W., designated bro-
d) incomplete Purchase & Sale Agree-                  Cooper, Judith F., sales associate        ker with Nahas Enterprises, Inc., in Boise.
ment; 54-2051(1)(a-e) no valid listing             with Hope Realty: Northwest Brokers          Civil penalty fine of $100.
agreement. Given a formal reprimand;               Corporation in Coeur d’ Alene. Civil            Pierce, John C., reciprocal managing
required to pay a civil fine of $1,500;            penalty fine of $50.                         associate broker with Hall & Hall Part-
costs and attorney’s fees; and required to            Dillon, Lou Ella, sales associate with    ners LLP in Jackson, WY. Civil penalty
complete a Real Estate Law course within           Sommerfeld Realty, Inc., in Sandpoint.       fine of $100.
six months.                                        Civil penalty fine of $50.                      Rollins, Allen R., designated broker
   Yearsley, Linda, Designated broker                 Drinkard, Holly Kay, sales associate      with Intermountain Land Exchange, Inc.,
with Valley Real Estate in Garden Valley.          with Treasure Valley Properties, Inc., in    in Pocatello. Civil penalty fine of $70.
Stipulated to violations of Idaho Code             Nampa. Civil penalty fine of $100.              Sawyers, Samuel L., associate bro-
sections 54-2060(12) reckless conduct                 Farrell, Joseph Alan, sales associate     ker with RE/MAX of Boise in Boise. Civil
in a regulated transaction; 54-2053(4)             with Pace Kerby & Company, Inc., in          penalty fine of $100.
misleading advertising; 54-2051(2)(4)(a-           Bonners Ferry. Civil penalty fine of $100.      Shine, William G., sales associate
d) incomplete Purchase & Sale Agree-                  Forno, James E., sales associate with     with GMAC Real Estate Northwest in
ment; 54-2051(1)(a-e) no valid listing             GMAC Real Estate Northwest: Jordan           Coeur d’Alene. Civil penalty fine of $100.
agreement. Given a formal reprimand;               Hill & Hall, Inc., in Coeur d’Alene. Civil      Stucker, Pamela, associate broker
required to pay a civil fine of $1,500;            penalty fine of $100.                        with Realty One Centre of Boise, Inc., in
costs and attorney’s fees; and required to            Hancock, Stephen B., reciprocal as-       Boise. Civil penalty fine of $50.
complete a Real Estate Law course within           sociate broker with Jackson Hole Realty;        Swenson, Heidi J., salesperson (cur-
six months.                                        Real Estate Services LTD in Jackson,         rently inactive) with American Realty in
                                                   WY. Civil penalty fine of $50.               Boise. Civil penalty fine of $150.
   Designated brokers, associate brokers              Harmon, Kelly R., sales associate            Wali, David S., sales associate with
or salespersons issued a civil penalty fine        with RE/MAX of Boise in Boise. Civil         Colliers International in Boise. Civil pen-
for violation of sections 54-2002, 54-             penalty fine of $50.                         alty fine of $50.
2018(2), and 54-2060(10), Idaho Code-                 Jackson, Jason M., sales associate
failure to renew license in a timely man-          with Columbia Village Realty in Boise.          Designated brokers issued a civil pen-
ner, and continuing to practice as a lic-          Civil penalty fine of $50.                   alty fine for violation of sections 54-
ensee after license had expired:                      Jensen, Douglas P., sales associate       2038(3) and 54-2060(10), Idaho Code-
   Bell, Andrea “Andy”, sales associ-              with River City Realty, Inc., in Post        failure to adequately supervise by allow-
ate with Bushell & Company in Sun                  Falls. Civil penalty fine of $50.            ing an unlicensed person to represent the
Valley. Civil penalty fine of $150.                   Jones, Mark E., sales associate with      broker:
   Bogaert, Paul L., sales associate with          Robert Jones Realty, Inc., in Twin Falls.       Brandt, Donald K., designated bro-
LP Link Associates, Inc., in Coeur d’              Civil penalty fine of $50.                   ker with Brandt Agency in Nampa. Civil
Alene. Civil penalty fine of $50.                     Lacey, Price A. “Andy”, sales asso-       penalty fine of $50.
   Brickett, Robert Douglas III, sales             ciate with Idaho Real Estate Company in         Browning Jr., John W., designated
associate with Coldwell Banker                     Nampa. Civil penalty fine of $50.            broker with First Service Group Real
Schneidmiller Realty in Coeur d’Alene.                Lamb, Anjeleigh M., sales associate       Estate in Boise. Civil penalty fine of $150.
                                                   with Coldwell Banker Schneidmiller Re-          Bushell, Geoffrey S., designated bro-
                                                   alty in Coeur d’Alene. Civil penalty fine    ker with Bushell & Company in Sun
                                                   of $50.                                      Valley. Civil penalty fine of $150.
             License Stats                            Lukoic, Travis J., sales associate           Clark, Richard P., designated broker
                                                   with RE/MAX of Boise in Boise. Civil         with Colliers International in Boise. Civil
   Active (broker & sales) ........... 5,471
                                                   penalty fine of $50.                         penalty fine of $50.
      Active brokers ................... 1,735
                                                      Mannan, Hilary, sales associate with         Clifton, Maurice S., designated bro-
      Active sales ....................... 3,737
                                                   Mark Hall Real Estate in Sandpoint. Civil    ker with ERA West Wind in Boise. Civil
   Inactive (broker & sales) ......... 1,734
                                                   penalty fine of $50.                         penalty fine of $50.
      Inactive brokers ................... 380
                                                      McCann, Michael D., associate bro-           Dildine, David W., designated bro-
      Inactive sales ..................... 1,354
                                                   ker with McCann Daech Fenton REAL-           ker with Realty One Centre of Boise in
   Active Companies ................... 1,006      TORS® LLC in Sun Valley. Civil penalty       Boise. Civil penalty fine of $50.
                                                   fine of $50.                                                   (continued on page 15)

14-The Real Estatement                                                                                                        January 2003
(Disciplinary from page 14)                      Tracy, Michael Shaun, designated           broker with Lewis Clark Real
                                              broker with RE/MAX of Boise in Boise.         in Clarkson, WA.
                                              Civil penalty fine of $50.                       George, Carol Jane, designated bro-
   Fenton, Jr., Richard, designated bro-
                                                 Tracy, Michael Shaun, designated           ker with Associates First Realty LLC in
ker with McCann Daech Fenton Realtors
                                              broker with RE/MAX of Boise in Boise.         Twin Falls.
LLC in Sun Valley. Civil penalty fine of                                                       Gorham, Daniel Joseph, designated
$50.                                          Civil penalty fine of $100.
                                                 Tracy, Michael Shaun, designated           broker with Windermere Real Estate/
   Gorham, Daniel Joseph, designated
                                              broker with RE/MAX of Boise in Boise.         Sun Valley LLC in Hailey.
broker with Windermere Real Estate/
                                              Civil penalty fine of $50.                       Hellen, Lynda M., designated broker
Sun Valley LLC in Hailey. Civil penalty
                                                 Vaudreuil, Raymond R., designated          with Direct Realty in Boise.
fine of $50.
                                              broker with Hope Realty: Northwest Bro-          Jordan, R. Brad, designated broker
   Hall, Douglas A., reciprocal desig-                                                      with GMAC Real Estate Northwest in
nated broker with Hall & Hall Partners        kers Corporation in Coeur d’Alene. Civil
                                              penalty fine of $50.                          Coeur d’Alene.
LLP in Jackson, WY. Civil penalty fine of
                                                 Walker, Jamie A., designated bro-             McFarland, Donald A., designated
                                              ker with Treasure Valley Properties, Inc.,    broker with RE/MAX West-Results, Inc.,
   Hall, Mark V., designated broker
                                              in Nampa. Civil penalty fine of $100.         in Boise.
with Mark Hall Real Estate in Sandpoint.
                                                 Wolfinger, James P., designated bro-          McGraw, Richard W., designated bro-
Civil penalty fine of $50.                                                                  ker with The Real Estate Group in Merid-
   Hoke, George Bland, reciprocal des-        ker with Wolfinger Land & Auction Co.
                                              in Grangeville. Civil penalty fine of $100.   ian.
ignated broker with Jackson Hole Realty;
                                                 Woolf, Barbara J., designated bro-            Noah, Creed A., designated broker
Real Estate Services LTD in Jackson,
                                              ker with American Realty in Boise. Civil      with Creed Noah Real Estate Company in
WY. Civil penalty fine of $50.
                                              penalty fine of $150.                         Cambridge.
   Jones, Robert, designated broker with
                                                 Youngwirth, Michael D., designated            O’Neill, D. Derick, designated bro-
Robert Jones Realty, Inc., in Twin Falls.                                                   ker with OEI Properties in McCall.
Civil penalty fine of $50.                    broker with River City Realty, Inc., in
                                              Post Falls. Civil penalty fine of $50.           Page, Douglas S., designated broker
   Jordan, R. Brad, designated broker
                                                                                            with High Desert Realtors, Inc., in Idaho
with GMAC Real Estate Northwest: Jor-
                                                 The following designated brokers have      Falls.
dan Hill & Hall, Inc., in Coeur d’Alene.
                                              been issued citations for violations found       Roecks, Bettie M., designated bro-
Civil penalty fine of $100.
                                              during their audits:                          ker with Roecks & Roecks, Inc., in
   Jordan, R. Brad, designated broker                                                       Spokane, WA.
with GMAC Real Estate Northwest: Jor-            Anderson, Michael W., designated
                                              broker with McCall Real Estate Com-              Rowland, Dewey M., designated bro-
dan Hill & Hall, Inc., in Coeur d’Alene.
                                              pany in McCall.                               ker with Columbia Village Realty in Boise.
Civil penalty fine of $100.
                                                 Bilyeu, Clark P., designated broker           Skelly, Phil Leon, designated broker
   Kerby, Darrell W., designated bro-
                                              with Corey Barton Home Sales & Mar-           with RE/MAX Tri-Cities LLC in Fruitland.
ker with Pace Kerby & Company, Inc.,
                                              keting, Inc., in Nampa.                          Strickland Jr., Richard B., desig-
in Bonners Ferry. Civil penalty fine of                                                     nated broker with Strickland Real Estate
$100.                                            Byington, Dwain “Ed”, designated
                                              broker with The Real Estate Store, LLC,       in Gooding.
   Lanum, Betty J., designated broker
                                              in Nampa.                                        Weigand, Diane Elizabeth, desig-
with Idaho Real Estate Company in
                                                 Callies, Tricia A., designated broker      nated broker with Mountain Lakes Re-
Nampa. Civil penalty fine of $50.
                                              with Boise Realty, Inc., in Boise.            alty in McCall.
   Link, Joyce E., designated broker
                                                 Crawford, Robert D., designated bro-          Wellington, Ben L., designated bro-
with LP Link Associates, Inc., in Coeur                                                     ker with Wellington Real Estate in Cas-
d’Alene. Civil penalty fine of $50.           ker with The Crawford Company Real
                                              Estate Services in McCall.                    cade.
   Longstreet, Garrett James, desig-
                                                 Ekstrom, Jan Louise, designated               Wixom, Donald D., designated bro-
nated broker with Century 21 1st Place
                                              broker with Janek Co. in Coeur d’Alene.       ker with RE/MAX Advantage in Nampa.
Realty in Boise. Civil penalty fine of $50.                                                    Yearsley, Linda K., designated bro-
   Rowland, Dewey M., designated bro-            Ellis, Bert W., designated broker with
                                              Greylock Realty in Boise.                     ker with Valley Real Estate in Garden
ker with Columbia Village Realty in Boise.                                                  Valley.
Civil penalty fine of $50.                       Erickson, Barbara J., designated
   Schneidmiller, Gary T., designated
broker with Coldwell Banker
Schneidmiller Realty in Coeur d’Alene.                                           Moving?
Civil penalty fine of $50.
   Schneidmiller, Gary T., designated            All licensees, whether active or inactive, must notify (in writing) the Idaho
broker with Coldwell Banker                      Real Estate Commission when their personal address changes. So, fax it,
Schneidmiller Realty in Coeur d’Alene.
                                                 mail it, fill out a Notice of Change form, change it on the renewal form, e-
Civil penalty fine of $50.
   Stevens, Marjorie S., designated bro-         mail it to, or change it online at
ker with Sommerfeld Realty, Inc., in    Best of all,
Sandpoint. Civil penalty fine of $50.            there is NO charge.

January 2003                                                                                                 The Real Estatement-15
                                 New Continuing Education Rules
   400. CONTINUING EDUCA-                     ment and evaluation;                          licensee’s orientation.
TION A PREREQUISITE FOR                          g. Land use planning and zoning;              403. CERTIFICATION OF
RENEWAL OF ACTIVE LI-                         land development; construction; energy        COMPLIANCE AND SATISFAC-
CENSE. Every licensee applying to             conservation in building;                     TORY PROOF.
renew a license on active status, or             h. Real estate investment;                    As required by Section 54-2018,
applying to change from inactive to              i.    Accounting and taxation as           Idaho Code, a licensee applying to re-
active license status, shall first meet the   applied to real property;                     new an active license, or to change
continuing education requirements set            j.    Real estate appraising;              from inactive to active status, shall cer-
forth in Sections 54-2018 Idaho Code,            k. Real estate marketing proce-            tify having met the continuing education
and 54-2023, Idaho Code.                      dures related specifically to actual real     requirements set forth in Section 54-
   401. OBTAINING CONTINU-                    estate knowledge;                             2023, Idaho Code, in the form and
ING EDUCATION CREDIT. In                         l.    Real estate inspections;             manner approved by the commission.
addition to those courses that have been         m. Property management;                    The licensee shall keep satisfactory
certified or preapproved for continuing          n. Timeshares, condominiums and            proof of having completed the require-
education by the Commission, and as           cooperatives;                                 ment, and upon request, shall provide
provided in Section 54-2023(5)(e), Idaho         o. Real estate environmental is-           satisfactory proof to the Commission of
Code, a licensee may obtain continuing        sues and hazards, including lead-based        having completed the requirement.
education credit for the successful           paint, underground storage tanks, ra-            01. Commission Request for
completion of any course meeting ei-          don, etc., and how they affect the prac-      Proof of Compliance. The commis-
ther of the following descriptions, with-     tice of real estate;                          sion may request satisfactory proof of
out the preapproval or certification of          p. Water rights;                           continuing education compliance from
the Commission:                                  q. Brokerage office management             any licensee who has submitted a cer-
   01. Professional designation               and supervision; and                          tification of continuing education com-
courses. Courses developed by na-                r.    Use of calculators or comput-        pliance. The request shall state the time
tional professional organizations and that    ers as applied to the practice of real        within which the proof must be re-
are required in order to earn profes-         estate.                                       ceived in the Commission office, which
sional designations from a national or-          02. Other topics. Upon written             time shall not be less than ten (10)
ganization in specialized areas of li-        request, the Commission may also ap-          business days.
censed real estate practice; or               prove any other topic that directly re-          02. Satisfactory Proof of Compli-
   02. Courses accredited by other            lates to real estate brokerage practice       ance. Upon request from the Commis-
professions. Courses approved by              and that directly contributes to the ac-      sion, the licensee shall submit satisfac-
and offered in satisfaction of another        complishment of the primary purpose           tory proof of having met the continuing
professional or occupational licensing        of continuing education, which is to help     education requirement. Satisfactory
authority’s education requirements, if        assure that licensees possess the knowl-      proof shall include, for each course
within the approved topics listed in Rule     edge, skills, and competency necessary        listed in the certificate of compliance,
402.                                          to function in the real estate business in    the following:
   402. APPROVED TOPICS FOR                   a manner that protects and serves the            (a) Satisfactory evidence of having
CONTINUING EDUCATION.                         public interest. The knowledge or skills      successfully completed the course,
   01. Topics approved by the Com-            taught in an elective course must enable      which shall consist of:
mission. Approved topic areas for             licensees to better serve real estate            (i) A transcript of the course taken;
continuing education, as provided for in      consumers.                                       (ii) A letter from the provider verify-
sections 54-2023 and 54-2036, Idaho              03. Topics not eligible for con-           ing successful completion of the course;
Code, include the following:                  tinuing education credits. The fol-           or
   a. Real estate ethics;                     lowing activities shall not be eligible for      (iii) A course completion certificate;
   b. Legislative issues that influence       approval for compliance with the con-         and shall clearly identify the licensee,
real estate practice;                         tinuing education requirement: those          the title of the course or challenge
   c. Real estate law; contract law;          which are specifically exam prepara-          exam, the course provider, the number
agency; real estate licensing law and         tion in nature; those which deal with         of classroom hours, and the challenge
administrative rules;                         office or business skills, such as typing,    exam or course completion date; and
   d. Fair housing; affirmative mar-          speed reading, memory improvement,               (b) Satisfactory evidence that the
keting; Americans with Disabilities Act;      body language, motivation and similar         course listed is approved for continuing
   e. Real estate financing, including        activities; those which are held in con-      education credit, as provided by section
mortgages and other financing tech-           junction with a brokerage firm’s sales        54-2023, Idaho Code, which shall be
niques;                                       promotion or sales meetings; those which      established by the course certification
   f.     Real estate market measure-         are held by trade organizations for                              continued on page 18
16-The Real Estatement                                                                                                  January 2003
            Reduce Your Risk of Errors & Omissions Claims:
         Disclose Defects and Recommend Professional Opinions
                                           by Rice Insurance Services Company, LLC

    A review of Idaho real estate errors   on the Seller’s Disclosure Statement,         although he never produced a warranty
and omissions claims from January 1,       and to be helpful, you respond that if the    or anything in writing to back up his
1999, to the present indicates that the    seller has corrected the water problem        statement. You had not looked care-
majority of these claims against agents    and nothing further has happened, then        fully at the roof to try and verify its age
have been based upon allegations of        the seller does not need to disclose it on    or the seller’s statement. The big rain
misrepresentations about the house,        the Disclosure Statement. The seller          comes again, and the roof leaks on the
property or boundary lines, or non-dis-    tells you that he has corrected the prob-     buyers during their first weekend in the
closure of hidden defects in the prop-     lem by putting some fill dirt around the      house. The buyers immediately call you
erty or house. Many of these types of      foundation. Two months after the clos-        and claim you misrepresented the age
claims can be prevented by a careful       ing, a big rain leaves water flooding into    of the roof. The buyers also allege that
examination of the property before list-   the foundation of the house. The buyer’s      they relied on you as their in-state agent
ing or showing any piece of property or    agent calls you and you call the seller, as   to disclose and verify all relevant infor-
structure. In addition, recommending       the buyer is screaming for rescission of      mation about the house. The sellers
that the seller complete a property dis-   the contract or thousands of dollars in       refuse to repair or replace the roof and
closure statement, recommending that       repair damages. The seller responds           it continues to leak. The buyers file a
a professional home inspection be con-     that you were aware of the water prob-        lawsuit against the sellers and you for
ducted by a qualified, insured home        lem and agreed that he did not need to        damages to replace the roof. You find
inspector, or recommending an inde-        disclose it. The seller refuses to pay for    yourself caught in the middle, trying to
pendent survey of the property by a        any repairs and a lawsuit is filed against    remember and defend any and all dis-
professional, can often prevent these      the seller and you.                           closures made by you to both the buyers
claims or, if necessary, defeat them in       Also, be careful in acting as a dual       and the sellers.
litigation.                                agent for the sellers and buyers, par-           This lawsuit may have been avoided
    As an agent, do your homework;         ticularly when the buyers are out-of-         by your recommendation to the buyers
conduct a careful visual inspection of     state. Full disclosure to all parties is      of an independent professional home
each piece of property you list or sell,   required and should be done in writing.       inspection being completed prior to the
document any defects you find and          As a dual agent, you should make sure         closing. You should always recommend
discuss the defects with the seller. Any   to disclose, in writing, all conflicts of     a home inspection to your prospective
defects should also be disclosed to pro-   interest in representing both parties and     in-town or out-of-state house buyers.
spective buyers. As the listing agent,     keep copies of all documentation. A           You should provide a list of at least five
you should always have the seller com-     well-documented file often prevents and       qualified, insured home inspectors, and
plete a Seller’s Disclosure Statement.     provides the best defense against er-         you should not make any recommenda-
You should not complete this Disclo-       rors and omissions claims. Idaho agents       tions with regard to the inspectors. You
sure Statement or advise the seller on     acting in a dual agency capacity have         should update your list of inspectors
how to complete it, or you may find        been sued for non-disclosure by both          regularly by checking their qualifica-
yourself defending a claim later from      sellers and buyers over the past three        tions and references. You should mark
the buyer, the seller, or both. Lawsuits   years.                                        off your list those home inspectors who
against Idaho real estate agents alleg-       A typical dual agency claim can arise      you have received consumer complaints
ing failure to disclose certain defects    when an out-of-state buyer alleges you        about or who do not carry insurance.
known by the agent or failure to provide   misrepresented or failed to disclose          Do not provide the name of only one
a Seller’s Disclosure Statement have       some condition in the house or property       inspector or recommend a relative “who
been common over the past three years.     because you also represented the seller.      needs the work,” or you may be inviting
    A typical non-disclosure claim can     The out-of-state buyer alleges he vis-        a lawsuit, particularly if the home in-
arise when a seller asks you, as the       ited the house one time and was told by       spector is uninsured. Remember Idaho
listing agent, how to address a “small     you that the roof was new. The seller         real estate agents are often brought into
water problem around the foundation”       had told you that the roof was new,                             (continued on page 18)

 Have you been to our NEW website?
                                                                                                             Check it out!
January 2003                                                                                              The Real Estatement-17
(E&O from page 17)                            boundary lines on a piece of property,         certain items such as a well are in-
                                              recommend to the prospective buyer             cluded on the property. You respond
lawsuits involving sellers, buyers, home      that an independent survey of the prop-        that you are not certain, but think the
inspectors, pest control companies and        erty be performed by a professional to         stakes identify the boundary lines and
others, because the real estate agent is      identify the boundary lines. You should        that the well is part of the property for
the only party involved in the transac-       provide a list of at least five professional   sale. No professional survey or verifi-
tion who has insurance.                       surveyors to the prospective buyer, simi-      cation of boundary lines is completed
   In addition, if the home inspector         lar to the list of home inspectors, and        prior to the closing. After the buyer
finds any defect, or lists any items that     don’t recommend one surveyor over              takes possession of the property and
he thinks need repairing or replacing in      the others. Again, don’t provide the           starts to use the well, the neighboring
the report, don’t hire a contractor,          name of only one surveyor, and don’t           landowner tells the buyer to stop tres-
plumber, or electrician to perform the        retain the surveyor to perform the sur-        passing on his property and using his
repairs. Any repair work, and payment         vey. If the survey is not accurate, or is      well. Eventually the buyer files a law-
for the work, should be agreed upon in        performed in some negligent fashion            suit against you and the sellers, and you
writing by the sellers and the buyers         and you selected the surveyor, you may         argue that you told the prospective buyer
prior to the work being performed.            be inviting an errors and omissions law-       that you had only seen the property
Claims of breach of duty and negli-           suit. There have been numerous claims          once and that you weren’t sure if the
gence have been alleged against real          made against Idaho real estate agents          stakes marked the boundary lines. How-
estate agents in Idaho who have agreed        for improperly or negligently identifying      ever, you have nothing in writing in your
to hire contractors to get repair work        boundary lines, with some misidentified        file to document that conversation or to
done “to facilitate the sales process”        boundary lines even resulting in the sale      verify the location of the boundary lines,
and the repair work was of poor quality       of the wrong property and expensive            so the lawsuit continues. Again, the
or never completed. These claims may          lawsuits.                                      lawsuit may have been avoided if you
have been avoided if the real estate             A typical claim can arise when you          had better documentation in your file, or
agent had not acted outside his or her        are walking a piece of property with a         you had recommended that the buyer
area of expertise.                            prospective buyer and questions arise          retain an independent professional to
   Another way to avoid an Errors and         about the boundary lines. There are            prepare a survey of the property.
Omissions claim is not to identify bound-     stakes on the property and the prospec-           In conclusion, always be careful in
ary or property lines for the prospective     tive buyer asks you whether the stakes         answering any questions from prospec-
buyer. If there is a question about the       mark the boundary lines and whether            tive buyers or seller about a particular
                                                                                             piece of property. Verify what is fact
                                                                                             about the property and what is your
 (Rules from page 16)                         54-2065, Idaho Code, to investigate            opinion. If you don’t know the answer
                                              and discipline a licensee for miscon-          to a question, say so and don’t create an
 approval number. The Commission              duct.                                          answer. Remember to recommend pro-
 may, in its sole discretion, accept alter-      406. FALSIFICATION OF CER-                  fessional opinions when appropriate to
 native documentation establishing that       TIFICATES OR DOCUMENTA-                        shift risk. Don’t be left holding the bag,
 the course is approved for credit.           TION.                                          or defending the lawsuit, for failing to do
    404. FAILURE TO SUBMIT SAT-                  Any licensee who, acting alone or           your homework when selling or listing a
 ISFACTORY PROOF – INACTI-                    in concert with others, willfully or           piece of property.
 VATION OF LICENSE.                           knowingly causes or allows a Certifi-             This article was prepared by Rice
    Failure of a licensee to comply with      cation of Continuing Education Com-            Insurance Services Company, LLC
 a Commission request for satisfactory        pliance, or any written documentation          (RISC). The example claims were
 proof of continuing education compli-        verifying a Certification of Continuing        based upon fact patterns presented in
 ance shall be deemed an insufficient         Education Compliance, to be submit-            claims which had been administered by
 application for licensure under Section      ted to the Commission which is false,          RISC’s Claims Examiners and Errors
 67-5254, Idaho Code, and shall result        fraudulent, or misleading, shall be sub-       and Omissions Counsel. This is not an
 in the immediate inactivation of the         ject to disciplinary action, including but     exhaustive description of Idaho real
 license. The inactivation of the license     not limited to suspension or revocation        estate Errors and Omissions claims for
 shall be deemed a partial expiration of      of license, in accordance with Chap-           the last three years. Also, this article
 the license.                                 ter 52, Title 67, Idaho Code; provided,        does not describe the Idaho Real Estate
    405. AUTHORITY TO INVES-                  however, that nothing herein shall en-         Commission group Errors and Omis-
 TIGATE AND DISCIPLINE NOT                    title such licensee to notice and hear-        sions policy or whether the policy would
 LIMITED. Nothing in these rules              ing on the automatic inactivation of           provide coverage for all examples of
 shall limit the Commission’s authority       license provided for in these rules.           claims discussed herein.
 granted in sections 54-2058 through             407. — 499. (RESERVED).
18-The Real Estatement                                                                                                    January 2003
                             Idaho Indoor Environment Program
                                        by Kara Stevens, Department of Health & Welfare

   The Idaho Indoor Environment Pro-         being built on shallow water tables and      L, almost five times higher than the
gram (IIEP) is housed within the De-         in clay soil without drainage systems.       national average.
partment of Health and Welfare, Bu-             REALTORS® should advise home                 Real estate agents can provide a
reau of Environmental Health and             inspectors to look for moisture prob-        service to their clients by ensuring that
Safety. The program is responsible for       lems such as water in the crawlspaces        home buyers and sellers are informed
informing and educating Idahoans about       and stained ceiling tiles. In addition the   about risks of radon before closing.
human health risks associated with ex-       seller should be asked if they have ever     Disclosure creates a level playing field
posure to indoor contaminants, and ways      had water leaks or moisture problems in      for buyers and sellers, because both
to prevent or reduce exposure. Mold          the home. The IIEP has an information        parties are given the same information
and radon are the two issues that IIEP       packet on mold that is available to Re-      early in the process when there is time
receives the most calls and requests for     altors and their clients. Free copies of     to consider the information and act on it.
information.                                 the mold information packet are              It appears that radon rarely is a “deal
                                             available by calling the IIEP at 1-          breaker.”
   Mold                                      800-445-8647.                                   The EPA, in association with the
   Over the last two years, there has                                                     National Association of REALTORS®,
been an increase in the number of mold          Radon                                     states, and others, developed a Home
calls received by the IIEP. Some of the         Radon is found all over the United        Buyer’s and Seller’s Guide to Ra-
reasons for the increase include: 1)         States, including Idaho. Since 1990, 35%     don. The pamphlet provides guidance
Dwell time for water has gone up due to      of the radon tests reported in Idaho         on how to test for radon during real
lack of natural ventilation in homes, 2)     have been above the Environmental            estate transactions. Free copies of
building materials, such as particle board   Protection Agency’s (EPA) action level       the Home Buyer’s and Seller’s Guide
and Oriented Strand Board (OSB), are         of 4 picoCuries per Liter (pCi/L). The       are available by contacting the IIEP
less tolerant to water and 3) homes are      average radon level in Idaho is 6.1 pCi/     at 1-800-445-8647.

(Q & A from Page 2)                             Answer: License law 54-2056(5)            clients have input in this process as
                                             states that upon termination of the busi-    well. They may prefer the original bro-
rectly create a double contract, or which    ness relationship as a sales associate       ker, or even choose to list elsewhere
would otherwise mislead any broker,          licensed under a broker, the sales asso-     when they are released.
lender, title company, or government         ciate shall immediately turn over to the
agency involved in the transaction re-       broker all listing information and listing      Question: When does a licensee have
garding source of funds used to com-         contracts, keys, purchase and sales          to deliver earnest money associated
plete the real estate transaction or re-     agreements and similar contracts, and        with a purchase and sales agreement to
garding the financial resources or obli-     other property belonging to the broker.      their broker?
gations of the buyer.                        A sales associate shall not engage in           Answer: License law 54-2045(4)
   License law 54-2053(4) provides           any practice or conduct, directly or         states that all consideration, including
that no advertising shall provide any        indirectly, which encourages, entices or     cash, checks held in uncashed form and
information to the public or to prospec-     induces clients of the broker to termi-      promissory notes, received by a sales
tive customers or clients, which is mis-     nate any legal business relationship with    associate in connection with a real es-
leading in nature.                           the broker unless he first obtains writ-     tate transaction shall be immediately
   Therefore, any limiting factors in the    ten permission of the broker.                delivered to the broker or the broker’s
advertising must be clearly spelled out         A licensee is certainly allowed to get    office.
so as not to mislead anyone reading the      paid for transactions that were created         The word “immediately” is used with
advertisement. Additionally, any rebates     before they move. This would allow the       good reason. There is no provision al-
made to purchasers that will effect their    existing sales to close, and not interrupt   lowing a licensee to deliver earnest
loan, must be disclosed in the Purchase      the trust account record keeping, and        monies upon acceptance. A broker is
and Sales Agreement for the under-           other important issues with a transac-       required to create a trust account led-
writers approval.                            tion. Listings and buyer representation      ger card, and account for these monies
                                             agreements that the first broker agrees      prior to acceptance. If the licensee
  Question: Can a licensee that is           to release can be moved. They must be        doesn’t turn it in, then the broker cannot
changing brokers transfer all of their       released outright and re-listed at the       properly account for it.
deals and listings to their new broker?      new brokerage. Remember that the

January 2003                                                                                               The Real Estatement-19
                                                                             Office Audits Conducted              127
      Offices with NO Audit Violations!                                      Offices With No Violations            29
                    (from May 1, 2002, through October 31, 2002)                     * Limited Activity Offices

Glenda Evans, Idaho One Realty, Eagle                              David Ray O’Brien, Cascade Lake Realty, Cascade
Daniel David Foreman, City-Wide Realty, Inc., Moscow               James E. Boring, Lakeland Real Estate, Cascade
Glenn B. Owen Jr., Moscow Realty LLC, Moscow                       David Kay Engen, Engen Realty, McCall
Gail A. Byers, Gail Byers Real Estate, Moscow                      Michelle Lynn Bayse, Brundage Realty, McCall
Deborah Sievers, Sagecreek Realty LLC, Ketchum                     F. Fred Glemser, Adams County Real Estate, Council
Linda L. Badell, Classic Realty, Ketchum                           Doris E. Jenkins, Realty One Professionals Plus, Boise
James E. Gray, Sun Valley Associates, Sun Valley                   Ned W. Johnson, Realty One Symphony Homes, Boise
Steven W. Kohntopp, Magic Valley Realty, Twin Falls                Rodney C. Panike, Select Properties LLC, Weiser
Bonny Jean Ross, Canyonside Realty, Jerome                         Claude M. Davis III, Century 21 Exclusive Properties,
Marva J. Walters, Landmark Realty, Jerome                          Inc., Weiser
Robert Jones, Robert Jones Realty, Twin Falls                      Joseph P. “Rusty” Lucas, Homeland Realty, Boise
Sid Lezamiz, Lezamiz Real Estate Co, Twin Falls

                                                                                                              PRSRT STD
    What’s new with the Idaho Real Estate Commission
                                                                                                             U.S. POSTAGE

  The Real Estatement                                                                                             PAID
                                                                                                             PERMIT NO. 1
    Vol. 22 No. 1                      January 2003
                                                                                                               BOISE, ID
                Published semiannually by:
              Idaho Real Estate Commission
                     P.O. Box 83720
                 Boise, Idaho 83720-0077

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