Blank Leasing Agreements for Commercial Property by pxi10158

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Three-way Agreement
•National Association
     Of REALTORS®
•Arkansas REALTORS®
     Association
•Local Board of
     Realtors®
    National Association of
         REALTORS®

• 1.3 million members
• Over 30 major policy
      suggesting committees
• Board of directors/executive
      committee
• Annual member meetings, May
      & November Convention
      National Association of
           REALTORS®
• Chicago: all member services
     except political
• Washington, DC: legislative and
     political
 Arkansas REALTORS® Association

• Membership of approximately 8,400
      out of approx. 11,000 active
      licensees in AR
•13 committees and task forces
• 38 member Board of Directors
• 8 member Executive Committee
• 9 member staff
  Arkansas REALTORS® Association
• Member/Local Board support
• Update NAR with local and state
       political and market conditions
• Maintain open dialogue with state and
       federal agencies on behalf of the
       members
• Toll Free, 888-333-2206 or
   501-225-2020
Local Association Here
 So, what
  does all
this mean
  to me?
National Association of REALTORS®

•NAR Magazine:
          “Today‟s REALTOR®”
• Up-to-date with:
              REALTOR.Org
•Member discount programs
  Arkansas REALTORS® Association
•ARA Newsletter:
           “REALTOR® „Rightings”
• Up-to-date with:
  www.arkansasrealtors.org (some areas are secure for members)
• Knowledgeable, professional staff
                   Call us!
         888-333-2206 or 501-225-2020
Local REALTORS® Association
    National Association of
         REALTORS®

• Mid-Year Conference in
      Washington D.C.
• Annual Convention with over 300
      educational sessions
Arkansas REALTORS® Association

• Graduate, REALTOR® Institute Program (GRI)
• Annual State Convention featuring numerous
       industry speakers
• CRS courses sponsored by the AR Chapter CRS
• ABR Courses
• Annual Forms Training to Local Boards
Local Board Here
Graduate, REALTOR® Institute
             (GRI)
 Certified Residential Specialist
             (CRS)
Accredited Buyer Representative
             (ABR)
             e-PRO
      Certified Residential Broker
                 (CRB)

Certified Commercial Investment Member
               (CCIM)

  Institute of Real Estate Management
                 (IREM)
National Association of REALTORS®

• Legal Action Program

• Legal Liability Series
ANTI-TRUST:
      Arkansas REALTORS® Association

• ARA Legal HOTLINE via e-mail
• Legal FAQ site ON-LINE (secure, requires sign-in)
• Member discount on Real Estate Forms
• Over 2400 man hours annually spent by
     REALTOR® volunteers on forms
     development
   National Association of REALTORS®

• A staff of over 50 in Washington D.C.
      serving as “watchdogs” and lobbyists
      for YOU and Property Rights!
• REALTOR® Legislative Network
• REALTOR® Political Action Committee
      (RPAC)
        What can YOU do?
• Understand Private Property issues
• Come to the Mid-Year Conference and get
     to know your federal legislators
• Respond to the “Calls to Action” through
     Action Center on Realtor.org.
      Arkansas REALTORS® Association
• Two Contract Lobbyist at the Capitol daily
• Member-driven decisions
• Members kept up-to-date during the
     Legislative Session through ARA website
• ARA is politically active year round
     watching out for your rights!
• ARA supports members seeking elected office
Local Board Informtion
      REALTORS® Political Action Committee


•Allows members to help candidates who
        understand our industry
• Helps open doors and encourages lawmakers to
        keep an open mind on our issues
• Positions REALTORS® as legitimate players in
        the political arena who command respect
     REALTORS® Political Action Committee



 What ARPAC is NOT!!!

•Partisan

•A Vote-buying vehicle
       REALTORS® Political Action Committee

     RPAC’s Recent Successes:
• Private property rights bill
• Housing for Older Persons Act
• Health insurance deduction
• Maintaining mortgage interest
     deduction
          Banks from entering the Real
• Prevented
     Estate Business
  Arkansas REALTORS® Political Action
              Committee

• In 2006, ARA Lobbyist
     voted best in the state.
• In 2006, ARA ranked 1st in
     spending, preparing for
     and lobbying for the
     2006 Session
 Arkansas REALTORS® Political Action Committee


     WHY CONTRIBUTE?
• Investments in the future of your
      business
• Tax credit on State Income Tax , not a
      deduction
• Imagine the IMPACT magnified by
      over One Million REALTORS®
                  What If?
• You were responsible for discovering structural
      defects…
• You were required to research every listing
      neighborhood for registered sex offenders…
• You had to pay sales tax on your earned
      fee...
• You were responsible for ANY defects in a home
      you sold beyond required disclosure by law…
     National Association of
          REALTORS®
• E-Commerce
• REALTOR.Org and
     REALTOR.COM
• Membership Records (NRDS)
• Technology is best observed at
     NAR Convention
      Arkansas REALTORS®
             Association
• New Task Force named
• Task Force reports on software
      and hardware for members
• Real Estate Forms software
• Interactive, full-service website
• Large projects being formed now
Local Board Info
         PROTECTED CLASSES
The Fair Housing Act Prohibits discrimination on housing
                      because of:
                    •Race
                    •Color
                     •Sex
                  •Religion
               •National Origin
                 •Handicap
               •Familial Status
 National Association of REALTORS®

• Legal Liability Series
• Fair Housing Partnership
      Agreement
• At Home with Diversity
      Certification
Arkansas REALTORS® Association

• State Fair Housing Partnership
      Agreement with HUD
• Equal Housing Opportunity Posters
      provided
• Staff/Officers available to speak at
      Local Board Meetings
Local Board Information
FAIR
HOUSING
VIDEO
National Association of REALTORS®

• $50,000,000 Public Awareness
      Campaign
• 2008 and beyond
   year around.
   Arkansas REALTORS® Association
• Award for Excellence
• Arkansas Special Olympics. Over 1.2
     Million Dollars in 22 years.
• „House to House‟ weekly column to over
     320,000 households.
• Over 1,000 articles and news in
     newspapers throughout the state
     annually.
   Arkansas Special
      Olympics
•1986 - ARA Becomes a Premiere
     Sponsor
Since 1986, ARA has raised over
     $1,200,000 on behalf of
     Special Olympics
Awards for Excellence Program
• Statewide program to recognize
     Top Producers
• Based on listing, leasing and
     selling volume
• Available in residential,
     commercial, and property
     management
          REALTOR®-of-the-Year
Local Board:
• Honors outstanding board member of the year for
     industry and community involvement

State:
• Local Board recipients honored at Gala during
      Annual Convention and Trade Show. One
      outstanding REALTOR® named ARA
      Realtor® of the Year at this Gala.
Local Board Information
CODE OF ETHICS
The REALTOR®
 Code of Ethics
New Member Orientation Program



 National Association of REALTORS®
      History and Background of the
              Code of Ethics
   National Association of
    REALTORS formed in
    1908.
   No license laws at the
    time.
   Real estate industry had a
    history of speculation,
    exploitation, and disorder.


         2
    History and Background of the
            Code of Ethics
   Code was adopted in 1913 to establish a
    professional standard of conduct.
   Code of Ethics formed the basis for
    license laws.




       2
History and Background of the
        Code of Ethics

              From its inception, the
               Code of Ethics
               required arbitration of
               monetary disputes
               between
               REALTORS.


 2
Under all is the land …
            The Preamble
   The Golden Rule

   Widely allocated ownership” and
    “widest distribution of land ownership”

   Maintain and improve the standards
    of their calling.

       3
           The Preamble
 Share with fellow REALTORS a
  common responsibility for the integrity
  and honor of the real estate profession.
 Strive to become and remain informed
  on issues affecting real estate.
 Willingly share the fruit of your
  experience and study with others.

     3
            The Preamble
 Identify and take steps to eliminate practices
  which may damage the public or which might
  discredit or bring dishonor to the real estate
  profession.
 Urge exclusive representation of clients.
 Do not attempt to gain any unfair advantage
  over competitors.
 Refrain from making unsolicited comments
  about other practitioners.


      3
             The Preamble
 If an opinion is sought about a competitor (or
  the REALTOR believes comment is
  necessary), the opinion should be offered in
  an objective, professional manner.
 The term REALTOR stands for
  competency, fairness, high integrity, moral
  conduct in business relations.
 No inducement of profit and no instruction
  from clients can justify departure from these
  ideals.

      3-4
The Three Major Sections

        Duties to Clients and
         Customers
        Duties to the Public
        Duties to REALTORS®




4
The Structure of the Code of Ethics

   Articles
    – Broad statements of ethical principles.


   Standards of Practice
    – Support, interpret, and amplify the Articles
      under which they are stated.



       4
The Structure of the Code of Ethics
   Case Interpretations
    – Specific fact situations to which the
      Articles and/or Standards of Practice are
      applied.
   Only Articles of the Code can be
    violated, though Standards of
    Practice can be cited in support of an
    alleged violation.
       4
           Ethics or Arbitration
   Ethics: Basic Issue
    – Is there a possible violation of the Code
      of Ethics?
   Arbitration: Basic Issue
    – Is there an arbitrable issue, that is, a
      money dispute?
    – Typically a dispute over which
      REALTOR is entitled to the
      cooperative commission in a
      transaction.
       5
The Ethics Enforcement Process


 Whocan file a
 complaint?




   5
    The Grievance Committee
 A screening committee comprised of
  members of the Association appointed to
  the committee.
 Key question for the Grievance Committee:
  If the allegations in the complaint were
  taken as true on their face, is it possible
  that a violation of the Code of Ethics
  occurred?

     5
    Professional Standards Hearing
                 Panel
   Function is to conduct a full “due process”
    hearing with sworn testimony, witnesses
    and evidence.
   Hearing Panel is comprised of members
    of the Professional Standards Committee.




        5
    Professional Standards Hearing
                 Panel
   After conducting a hearing, the Hearing
    Panel decides whether there was a
    violation of the Code of Ethics, proven by
    clear, strong and convincing proof.
   If the Hearing Panel finds a violation of
    the Code of Ethics, the Panel then
    determines the discipline to be imposed
    on the violator (respondent).

       5
            Authorized Discipline
      (and administrative processing fees)
 Letter of Warning
 Letter of Reprimand
 Education
 Fine not to exceed $5,000
 Probation for one year or less
 Suspension for not less than 30 days nor more than
  one year
 Expulsion from membership for period of one to three
  years
 Suspension or termination of MLS privileges
 Administrative processing fee (if found in violation) not
  to exceed $500 (“Court Costs”)
        6
      The Arbitration Process

 Request filed.
 Arbitration is conducted under
  Article 17 of the Code of Ethics and
  the state arbitration statute (if any).




      6
       The Arbitration Process
   Article 17 provides that arbitration occurs
    under the following circumstances:
    – Contractual disputes or specific non-
      contractual disputes
      (see Standard of Practice 17-4);
    – Between REALTORS (principals)
      associated with different firms;
    – Arising out of their relationship as
      REALTORS
       6
         Grievance Committee
 Committee performs a screening function
  similar to review of ethics complaints.
 Key question for the Grievance Committee:
  If the allegations in the request for
  arbitration were taken as true on their
  face, is the matter at issue related to a
  real estate transaction and is it properly
  arbitrable, i.e. is there some basis on
  which an award could be based?
     6
                Mediation
   A voluntary process in which
    disputing parties meet with a mediator
    appointed by the Association to
    create a mutually acceptable
    resolution of the dispute, rather than
    having a decision imposed by an
    arbitration hearing panel.


       7
                Mediation
 Mediation can occur before or after the
  Grievance Committee reviews requests for
  arbitration, depending on local Association
  policy.
 If a dispute is resolved in mediation, the
  parties sign an agreement spelling out the
  terms of the settlement, and no arbitration
  hearing is held.


     7
    Professional Standards Hearing
                 Panel
   Function is to conduct a full “due process”
    hearing with sworn testimony, witnesses
    and evidence.
   Hearing Panel is comprised of members
    of the Professional Standards Committee.




        7
 Professional Standards Hearing
              Panel

    After the hearing, the Hearing Panel
     decides which REALTOR is entitled
     to the award (typically a disputed
     commission in a transaction), proven
     by a preponderance of the evidence.



Materials Page #7
        Payment of the Award
 Generally, the award of the Panel in
  an arbitration case can be judicially
  enforced if not paid by the non-
  prevailing party.
 Some associations have procedures
  requiring that awards by deposited
  with the association pending review of
  the hearing process or during legal
  challenge.
    7
    NAR’s Arbitration Guidelines
 Found in the Code of Ethics and Arbitration
  Manual.
 Guidance to Hearing Panels as to how to
  determine procuring cause in arbitration
  hearings.
 Also referred to as “Suggested Factors for
  Consideration by a Hearing Panel in
  Arbitration.”
 Guidelines focus on “procuring cause” as
  the basis for resolving most commission
  disputes between brokers.
      8
         Key Factors in a
      Procuring Cause Dispute
 No predetermined rule of entitlement may
  be established by an association.
 Hearing Panels should consider the entire
  course of events.
 Matters such as the first showing of the
  property, the writing of the successful offer
  or the existence of an agency relationship
  with the buyer are not, in themselves,
  exclusive determiners of procuring
  cause/entitlement.
      8
              Key Factors in a
           Procuring Cause Dispute
   The key concepts of procuring cause
    are referenced in this definition from
    Black’s Law Dictionary, Fifth Edition:
    “The proximate cause; the cause
    originating a series of events which,
    without break in their continuity,
    result in the accomplishment of the
    prime object.”
       8
                Article 1
 Protect and promote the interests of
  the client;
 This obligation to the client is primary;
 But must treat all parties honestly,
  regardless of agency or non-agency
  relationship.
 Standard of Practice 1-2 defines
  terms such as “client,” “customer,”
  “agent,” and “broker.”
     9
     Article 2




11
                Article 2
 Avoid exaggeration,
  misrepresentation and concealment
  of pertinent facts about the property or
  the transaction;
 But there is no obligation to discover
  latent defects, matters outside scope of
  license, or matters confidential under
  agency or non-agency relationships.

     11
     Article 9

      Get   it in writing!!!




13
                 Article 9
 Agreements shall be in writing whenever
  possible;
 In clear and understandable language;
 Expressing the specific terms, conditions,
  obligations and commitments of the
  parties.
 A copy of each agreement shall be
  furnished to each party upon their signing
  or initialing.

     13
                 Article 9

   Standard of Practice 9-1 requires that
    reasonable care be used to keep
    documents current by use of written
    extensions and amendments.




       13
             Article 12
 Truth   in advertising!!




   14
                Article 12
   Present a “true picture” in your
    advertising and representations to the
    public.

   Ensure that the professional status of
    REALTORS is clearly identifiable in
    any advertising.

       14
                Article 16
   Do not engage in any practice or take
    any action inconsistent with the
    agency or other exclusive relationship
    that other REALTORS® have with
    clients.




       15
                    Article 16
   Examples of issues covered by Article 16
    and its Standards of Practice
    – Innovative or aggressive business practices
    – Advertising/solicitations which may be received
      by other REALTORS clients
    – Solicitation of listings and agency relationships
      of clients of other brokers
    – Dealing with other brokers’ clients
    – Obligations when entering into exclusive
      relationships
    – Agency and/or brokerage relationship
      disclosure
       15
The REALTOR Code of Ethics …

 protects the buying and selling public.
 promotes a competitive real estate
  marketplace.
 enhances the integrity of the industry.
 is your promise of performance.
 is your promise of professionalism.



    16
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Local MLS Rules
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