Landlord Forms for Agricultural Property

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Landlord Forms for Agricultural Property Powered By Docstoc
					Commonly Used Forms:

Continuing Education Credit

  Linda O’Connor,   ABR, CRS, GRI, ITI
            History & Background

 1980’s
     1983 FTC study of Buyers and Sellers to
      determine if the consumer realized that the real
      estate agents worked for the Sellers
     71% of the Buyers thought the selling agent
      worked “for” them
     74% of the Sellers thought the agent worked
      “for” the Buyer
        The Journey Continues…

 1990’s
 Massachusetts enacts mandatory agency disclosure
  1991 (NAR recommendations 1990: timely,
  written, and meaningful disclosure)
 Originally targeted toward Buyers (Seller agency
  disclosure not mandated until 1993)
 Public awareness of representation increases
 Demand for Buyer agency increases
          The New Millennium…

 New law took effect July 1, 2005 effectively
  clarifying and redefining the consumer-licensee
 Applies to residential 1-4 family, or land intended
  to house residential 1-2 family dwellings
 Allows for broader consumer representation
 Provides vehicle for “conclusive presumption of
  informed consent” relative to vicarious liability
          Vicarious Liability???

 The potential for a Seller (or a Buyer) to be
  held liable for a misrepresentation or an act
  or omission of a subagent
           Relationship Disclosure

• When must it be presented?
     Requirement is unchanged, all brokers and
      salespersons must present form at first personal
     If any change occurs in the relationship,
      disclosure must be made and written consent
      ABC’s of Relationships

1 “deck of cards”
2 “words”
3 “signs”
   Fiduciary Responsibilities

Client v customer level service…
      What do I owe my clients?

 Confidentiality
 Obedience
 Accounting
 Loyalty
 Due Diligence and Reasonable Care
       The New Disclosure Form

 “Types of Agency Representation”
 Possible relationships
 Note the disclosure language relative to
  vicarious liability (law changed imputed
  knowledge to actual knowledge)
 “This is not a contract.”
               Informed Consent

 Board of Registration Consent Form
     Approved language
     In writing, must be signed by both the agent and
     Conclusive presumption
            Timing of Consent to
               Dual Agency
1. Listing agreement or Buyer Agency
   agreement- before the transaction is
  a)   This method requires subsequent notice upon
       the occurrence of dual agency
2. Stand alone document
3. Must obtain consent prior to the execution
   of an Offer to Purchase
          Timing for Consent to
           Designated Agency

 Either at the commencement of the
  relationship (listing agreement- buyer or
 Or when the Designated agency actually
  occurs by stand alone consent form
               The Mechanics…

 Disclosure of possible relationships
 Consumer choice of non-contractual relationship
 Name of office/firm and license number
 Office policy relative to representation (designated
  v traditional) with disclosure and consent
 Signatures acknowledging receipt of information
 Licensee’s number and “today’s” date
Let’s practice…
           Home Inspector Forms

 Home inspector license law enacted in 1999
 Effective May 1, 2001 all licensees required to
  provide a copy of the state mandated document
  entitled “Facts for Consumers about Home
  Inspectors” at the time of the first written contract
  to purchase
 Designed to provide Buyers with information about
  the process and their rights, not a requirement that
  the Seller allows the Buyer to have an inspection

 I realize I can’t make recommendations
  concerning the use of home inspectors unless
  I am a Buyer’s agent. Can I make home the
  home inspector’s cards and other
  promotional material available?

 I have no way of proving that Buyers have
  received the “Facts for Consumers about
  Home Inspectors” since there is no signature.
  Can I ask them to sign an acknowledgement
  that they received it?
          Lead Paint Disclosures

 1995 Both Federal and State laws require
  disclosure of potential hazardous risks in
  homes built prior to 1978 to prospective
  tenants and purchasers
 Liability can arise if the agent fails to follow
  required procedures for disclosures
 Liability could be for deleading expenses as
  well as for personal injuries
                 Lead Paint

 Lead Form must be completed and signed by
  the Seller and the listing Broker (agent)
  before it’s signed as acknowledged by the
 Attach certification document to all listing
 Buyers acknowledge receipt with
  offer…logical sequence
                 Lead paint

Failure to provide Buyer with a form that has
 already been completed by the Seller creates
 a risk of liability
Often overlooked…Federal Lead regulations
 require that the executed document be
 attached to the Purchase and Sale
        Tenant Lead Notification

 Separate form available online
 Landlord or agent must provide each
  prospective tenant with written notice prior
  to the execution of a written agreement
 Landlord and agent must maintain copies of
  all signed documents
                 Short Term Rentals

 Exempt if rented less than 31 days
 Landlord and tenant sign a Short-Term Vacation or
  Rental Exemption Notification
 Visual inspection and acknowledgement
 Must include number of days, telephone number,
  signature, and dates
 Failure to complete form may negate exemption
          Tenant Fee Disclosure

 Written notice to prospective tenants must be
  given at the first personal meeting
 Must state charge for assistance, when and
  how paid, and whether the fee is due even
  though no tenancy may be created
 Requires that the form provide agent’s name,
  license number, date, and signatures
          Tenant Fee Disclosure

 Where no fee is to be charged there is no
  affirmative obligation to provide disclosure
 Records must be kept for three years,
  including copies of checks, or money orders,
  or written cash receipts
 Failure to provide a notice may result in the
  tenant’s right to return of application and
  rental fees…
   Seller’s Description of Property

 Massachusetts is not a mandatory Seller
  disclosure state
 May reduce liability
 Disclose, disclose, disclose
               Other Forms

 Counsel/attorney review prior to
  implementation of any non-mandatory forms
  designed by company
 Watch for more disclosure forms…
             Other choices…

 Receipt of condominium documents form
 Receipt of home inspection period form
 Environmental disclosure forms
 Agricultural and farming acknowledgment
 What next???
Thank you for your attention…
         Good luck!

        Linda O’Connor,   ABR, CRS, GRI, ITI

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