Special offer

How In The World Did You Pass The Real Estate Exam?

By
Real Estate Agent with The Gasset Group & Get It Done For Me Virtual Services 13253167-SA00

I have a very high tolerance for pain and a very low tolerance for stupidity. There is absolutely no excuse in any state where title companies are used to facilitate closings that any real estate agent should not understand or know how to read a HUD1 Settlement Statement. real estate agent coaching

We have a clear to close on another short sale. The HUD1 Settlement statement was sent over by the title company that we use for our Florida short sale closings to the buyer's agent. She sends the HUD1 Settlement statement to her buyer. Her buyer emails her for an explanation of the fees he is being charged on the buyer side of the column. She emails me her buyer's email and asks me to answer HER buyer's questions. 

She then calls me to ask me "what does the word pro-rations mean and why are pro rations on the HUD1 for taxes and HOA fees?" HUH????

I had to bite my tongue so hard. I wanted to ask her how in the world did she pass the real estate exam? There are questions on that exam concerning pro-rations. There is a whole section about the HUD1 Settlement statement in the real estate school manual. There are math questions about the pro-rations! 

How in the heck are you representing a buyer in a real estate transaction and not understand the terms on the HUD1 Settlement statement when at every closing you should be with your buyer going over the fees on the HUD1 and of course making sure your buyer is not being overcharged for fees. She did not even know that taxes are paid in arrears in Florida. How do you NOT know that??? 

Why are you asking me to do your job by consulting with your buyer?

Sorry, I can not do that. There is liability involved and I do not have a transactional relationship with your buyer. The best thing to do in this case is to call the title company and have the title person explain what all these fees are. So she did get the buyer on the phone with the title company and our title lady answered all of his questions. She calls us up after in total disbelief that an agent would not have a clue about any of the terms or fees on a HUD1 Settlement statement. 

Next question: Where is her broker?

Nestor would never allow a closing wherein he did as the broker have him or I review the HUD1 Closing statement for all transactions that go through our office. In fact, in most offices here, the brokers will not pay the agent until the HUD1 Closing statement has been approved and in the file. 

Please make sure you get educated before you represent buyers or sellers in real estate transactions and make it a requirement of working for a brokerage that your broker provides the training that you need to look like you are competent enough to follow through on a real estate transaction. 

 

Subscribe AR-Members   Subscribe to my blog by email

 

 

Follow Coach Katerina on Twitter! Add Coach Katerina on Facebook! Watch us on YouTube!Wellington Homes RSS Feed Join me at StumbleUpon I'm on Flickr! Check out my Google Profile! Subscribe to my FriendFeed! View my LinkedIn profile! 

 

Copyright © 2010 By Katerina Gasset, All Rights Reserved.*How In The World Did You Pass The Real Estate Exam?!* 

 


 

 

 

Posted by

Never miss an important post- follow me on my ActiveRain Blog 

In real estate we service Utah County, Salt Lake County, Wasatch County, Tooele County. This includes many towns and cities. Some of which are: Provo, Orem, Salt Lake City, Draper, Springville, Spanish Fork, Payson, Lehi, American Fork, Vineyard, Saratoga Springs, Eagle Mountain, Pleasant Grove, and more. 

Katerina Gasset is a real estate agent who is also a digital marketing strategist, website designer and consultant for real estate brokerages, agents, entrepreneurs and small business owners. She is also the owner of Get It Done For Me Virtual Services. 

Katerina is a Certified AI Marketing Specialist. She can help you with ChatGPT, Content at Scale, Neuronwriter, prompting, and many other AI tools. 

She develops products and online courses to empower real estate agents to reach their marketing, SEO, social media and branding goals. Katerina Gasset is a blogger, author, podcaster, and keynote speaker.  

Text Katerina with your name + number to work with her:

 561-502-1577 

 

 

  •  

 

 

 

 

 
  
 
 
 

 

Comments (56)

Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Woot - I could feel the steam coming out of your ears, girlfriend. There is no excuse what she did and apparently she has no filters. I agree with the others, send her back to her broker and the title company. However, I want to say this about you and I know you know me well enough not to hate me:

Maybe you and Nestor have displayed lots of love and kindness to her throughout the transaction until now. Clearly she knows you guys are highly professional with lots of experience under your belt. Maybe she felt comfortable asking you because other times, she had asked and you have responded in the behaviour she enjoys receiving.

I dont know about what went on but all I trying to say is to give you guys a pat, calm down and phewwwww.... let it all out.

Still no excuse about what she should know though. Please don't get me wrong.

Jan 22, 2010 09:10 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Thanks Loreena- You may be right. This agent needed hand holding all along and it was getting old after a while. I could understand the not knowing about short sales. but to not know anything about the HUD1 in Florida is unacceptable when at closings you go over those with your clients here. It is the same as an agent not knowing how to do a net sheet for their seller. Thanks and you can say anything to me, I won't take offense because I know of the spirit in which you give your feedback. 

Jan 23, 2010 02:00 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

How did she ever figure out how to submit an offer? Maybe this was her first sale. But you are right to be dismayed. Her broker deserves to be contacted.

Jan 24, 2010 06:14 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Katerina, Education is a good cure for ignorance and it isn't your job to counsel her clients...I just have to ask, was she related to them?

Jan 24, 2010 11:10 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Since you are a transaction broker in this transaction, are you held liable for any information you give about the HUD? It's not like it is a single agency or a fiduciary relationship.

My escrow company's short sale HUDs are more complex than normal ones. If you're questioning HOA and property tax pro-rations, then that's the least of my worries. ;)

 

Jan 24, 2010 11:44 AM
Steve Shatsky
Dallas, TX

Hi Katerina... I really blame her broker.  It's bad enough that she doesn't know such basic things, but worse yet that her broker hasn't told her to bring basic questions like this to him/her.

Jan 24, 2010 12:35 PM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Oh Katerina, your opening line has been my mantra for as long as I can remember :-)

It is a sad situation that people don't know what they are getting into, and don't pay attention, to the training that they were supposed to receive when they became licensed.

Jan 24, 2010 11:57 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

There is NO reason in the world, NO excuse in the world, for any agent to not get educated about their own business. There is NO reason NOT to read. If you are illiterate you would not have been able to read the test and if you are illiterate- learn to read. They teach free reading classes as most PUBLIC libraries around the country for FREE. IF you have a learning disability than listen to audio tapes and CDs or watch DVDs to learn your business. 

I am sorry- no actually I am NOT sorry. I do not have patience for being ignorant by choice. 

Satar- Our E and O insurance states to NOT give advice to anyone we are not bound by a contract too. We are a transaction broker to our seller. We have no relationship with the buyer. Therefore we can not give him advice. We have very simple HUD1s here. :) It's not rocket science and it was the straw that ....

Jan 25, 2010 12:53 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

A couplr of years ago we had a huge run on real estate schools and exams because Oklahoma was going from 120 hours of basic training to 150. People were taking the test two and three times and failing. In out state we have one of the lowest requirements for entry in the US. I guess that extra 30 hours to learn, keep yourself and your client out of trouble, and the turmoil of the extra 4 days of class was just too much. Once we can somehow knock down the money machine mentality that starts at the top and filters down, this will be with us. 

Jan 25, 2010 01:33 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

How did this agent pass the exam? Are the requirements in Florida that low? The big question in this is where was the Broker In Charge? Why was the broker allowing a new agent to do any deal without helping them thru every step. As to the new agent why did she calll you.If I did not know the answer to something the sellers agent would be the last person I would call if at all.

Jan 25, 2010 02:08 AM
Cari Anderson
Danville, CA

What I'm wondering is where was the loan officer if there was a mortgage involved? I go over each and every item on the Good Faith and the Estimated HUD1. I explain each and every item even if it's not a fee associated with the loan. Of course when a good RE Agent and loan officer collaborate, the buyer is even more informed. That is truly scary that there are still agents without proper knowledge in the business but I'm glad the client was ultimately taken care of by the title agent.

~Cari

Jan 25, 2010 05:05 AM
Kristi DeFazio
RE/MAX Advantage - Colorado Springs, CO
Colorado Springs Rea lEstate 719-459-5468

That is pretty funny (but sad at the same time). Hopefully, she went to her broker and he took care of re-educating her.

Jan 25, 2010 09:50 AM
Kristi DeFazio
RE/MAX Advantage - Colorado Springs, CO
Colorado Springs Rea lEstate 719-459-5468

That is pretty funny (but sad at the same time). Hopefully, she went to her broker and he took care of re-educating her.

Jan 25, 2010 09:50 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Carl- NOPE, ALL CASH! 

Jan 25, 2010 10:20 AM
Ritu Desai 703-625-4949
Samson Properties - Chantilly, VA
Northern Virginia,Washington DC & Maryland Realtor

LOL!!! I hope the next deal she has she will learn something new ...learning curve.

Jan 25, 2010 01:08 PM
Tracy Santrock
Santrock Realty Group Inc. , - Cary, NC
Raleigh - Cary Broker

It's always nice to have an outlet to vent - AR is the perfect venue!  I know I like to vent here occasionally too!

Jan 29, 2010 11:07 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

What a perfect opportunity for the title company to go into that agent's office and give a class on the HUD statement...contacting the manager and offering to do a few "mock" closings.

Jan 31, 2010 02:08 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Margaret- That would be a great idea, except that this agent's office is about her broker who lets anyone hang their license and is in Miami which is about 3 hours from the Title company. Our Title company does not even want to ever work with her again! If it were a bigger office or a franchise it would be worth her time to go all that way. But in this case, not. 

Jan 31, 2010 03:23 PM
Karen Rice Keller Williams Real Est
Keller Williams Real Estate - Hawley, PA
Northeast PA & Lake Wallenpaupack Home Sales

Came across this gem.  It's amazing. That's all I can say.  The bar for practising real estate needs to be raised.  Big time.

Feb 01, 2010 10:31 AM
Linda Lohman
Fonville Morisey Realty - Cary, NC
Former Teacher/Broker

Stunning but not suprising.  I'm more amazed that she wasn't embarassed to call you with her question.

Feb 21, 2010 07:19 AM