NAR has a new "deceptive web site practices act" that, among other things, disallows agents from manipulating listing content to produce misleading results, and using metatags, keywords, and other devices to divert or misdirect consumers from their intended Internet destinations.
Much time was spent on Mortgage Fraud red flags, and if you did not come to the sales meeting, you need to come by my office and pick up the form we went over. There are many agents being investigated actively by the FBI currently, and some have already been prosecuted and/or imprisoned. Don't let yourself be one of these by doing things such as working with "investors" who get unsubstantiated payoffs "under the table" at closing, or raising the listing price in MLS after the contract has been signed. There are many other warning signs, so educate yourself on them to stay out of jail.
A case law was discussed in regards to inaccurate zoning information provided by an agent in Texas who was ultimately found liable for not verifying multi-unit residential housing zoning for one of their investors. If you'd like to read the case law, come by and I'll copy it for you. If you are working any type of commercial or acreage transaction, first of all, I recommend you work alongside someone in the office who has more experience than you, as these are highly litigated transactions. But at the very least, you MUST always verify zoning and potential zoning for properties, and always ask the intended use of your buyers so you won't be held liable for them not being able to utilize the property. If you'd like to look it up on your own, the case is Coldwell Banker Whiteside Assoc, v. Ryan Equity Partners, Ltd, 181 S.W.3d 879 (Tex. App. Ct. 2006)
Texas Realtor Info
The IABS and Intermediary Relationship Notice forms were discussed. If you are not getting the IABS form signed AT THE FIRST SUBSTANTIVE DIALOGUE (including emails), you are breaking agency law in the state of Texas. It is only a notice, not an agreement, so it shouldn't be difficult to get signed. If you have trouble getting this notice signed, please inform me and we'll do a mini class on the dialogue necessary to get an IABS and Buyer's Rep form signed. If you are working an inter-office transaction, you must also get the Intermediary Relationship Notice (TAR 1409) form signed. This form notifies everyone that our firm represents the buyer and seller, and allows them to give us permission to do so.
In listening to the head of enforcement at TREC at the RE/MAX of Texas convention, most penalties are currently related to lack of agency information disclosed to clients. Another attorney informed us that most of the lawsuits currently under litigation are related to referencing sources of sizes...in other words, if you absolutely must disclose the square footage of something in an ad, also disclose the source of the data (i.e. 3000 sq. ft. per tax records, 1 acre per seller) Another highly litigated subject is referrals. Sadly enough, if you refer a service to your clients (i.e. inspector, repairman), you can get dragged into a lawsuit and potentially held liable for this referral. It is always best to refer 3 or more services and let the client pick. We've recently had some upset clients at our office because of the same issue. Luckily, none of them have chosen to sue.
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