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 October 2012 RESOURCE Now Available:
The October RESOURCE is now available to view. This issue includes:
- Letter from the CEO
- Minnesota's Economy At-A-Glance
- Q & A on the 2012 MNAR Approved Forms Changes
- The Importance of Transaction Files
- Code of Ethics Q & A
- Professionalism Q & A
- Commercial Real Estate Activity
- Legal Hotline Q & A
- Statewide Housing Report
- Tech Tips
- New Rules Proposed for Higher-Risk Mortgages
- Succession planning for crisis or tragedy in a real estate brokerage
- Where Do My Dues Dollars Go?
- Member Benefits
- MNAR Committee Reports
- HUD News
- Leadership Summit
- Geographic Target Marketing
- RPAC Update
- October Calendar
View the October issue now!
 Revised 2012 MNAR Forms Now Available!
Several of the MNAR Approved Forms have been revised and they are now available to access. There were several changes made this year to both the Residential and Commercial Forms library. Below is a listing of the forms that have been revised:
COMMERCIAL FORMS
- Commercial Contract for Exclusive Right to Represent Buyer and Commercial Contract for Exclusive Right to Represent Tenant have been combined into one form. This new form is titled Commercial Contract for Exclusive Right to Represent Buyer/Tenant
- Commercial Contract for Nonexclusive Right to Represent Buyer and Commercial Contract for Nonexclusive Right to Represent Tenant have been combined into one form. This new form is titled Commercial Contract for Nonexclusive Right to Represent Buyer/Tenant
- Commercial Exclusive Listing Agreement Sale and Commercial Exclusive Listing Agreement Lease have been combined into one form. This new form is titled Commercial Exclusive Listing Agreement
- Commercial Letter of Intent
- Commercial Nonexclusive Listing Agreement Sale and Commercial Nonexclusive Listing Agreement Lease have been combined into one form. This new form is titled Commercial Nonexclusive Listing Agreement
- Commercial One Time Showing Contract
- Commercial Purchase Agreement
- Examples of Clauses for Use in an Addendum to Commercial Purchase Agreement
New Commercial Forms
- Addendum to Commercial Purchase Agreement
- Amendment to Commercial Purchase Agreement
- Commercial Confidentiality Agreement
- Counteroffer Addendum to Commercial Purchase Agreement
Discontinued Commercial Forms
- Commercial Consent to Sublease by Landlord
- Commercial Exclusive Representation
- Office Lease
- Office/Warehouse Lease
- Commercial Option Agreement
- Commercial Request for Proposal for Space
- Commercial Sublease Agreement
RESIDENTIAL FORMS
- Amendment to Purchase Agreement Buyer's Move-In Agreement
- Amendment to Purchase Agreement Seller Holdover Possession Agreement "Rent Back"
- Arbitration Disclosure and Residential Real Property Arbitration Agreement
- Compensation Disclosure to Buyer/Tenant
- Condominium/Townhouse/Cooperative Addendum Common Interest Community (CIC)
- Exclusive Right to Lease Listing Contract
- Financing Addendum Contract for Deed
- Inspection Contingency Addendum
- New Construction Purchase Agreement
- Purchase Agreement
- Seller's Contributions to Buyer's Costs Addendum
- Seller's Disclosure Alternatives
- Seller's Property Disclosure Statement
- Showing Contract is retitled One Time Showing Contract (Purchase)
- Subsurface Sewage Treatment System and Well Inspection Contingency Addendum
- Vacant Land Disclosure Statement
- Vacant Land Purchase Agreement
New Forms
- Addendum to Exclusive Right to Sell Listing Contract
- Earnest Money Receipt
- One Time Showing Contract (Lease)
- Receipt of Common Interest Community (CIC) Documents
Discontinued Forms
- Buyer Purchasing "As Is" Addendum
View a summary of the 2012 changes to the MNAR Commercial Forms.
View a summary of the 2012 changes to the MNAR Residential Forms.
Attention: ALL Licensees - DOC Continuing Education Requirements for 2012-13
The MN Department of Commerce is required that ALL residential real estate licensees complete a 7.5 hour continuing education module prior to June 30, 2013. This module consists of two components:
• Contracts; AND
• MN Distressed Properties
Successful completion of BOTH components and a passing grade on the exam for BOTH components, prior to June 30, 2013, is necessary to satisfy the 7.5 hour module. The 7.5 module CANNOT be uploaded to Pulse Portal until both components have been satisfactorily completed with the same provider.
We are working very hard to help our members understand the additional statutory requirement that both components be taken by the SAME PROVIDER in the same format (i.e., either both in a classroom format or both in an online format).
Please note that "same provider" does NOT mean the same instructor or the same location. For example, the Minnesota Association of REALTORS® has seven instructors. Classes we provide taught by any of our seven instructors would meet the requirement. Many local associations and organizations are currently booking us to provide these module components throughout the year in multiple locations throughout the state. You can always see the current schedule of classes we are offering in partnership with local associations by going to our website www.mnrealtor.com, choosing the "MN Education Information" menu item on the top bar, then clicking "MNAR Classes" on the left side bar.
A list of those currently scheduled through the next two weeks are listed below. We will continue to update the list in future newsletters.
Wednesday, October 3rd
Contracts and Real Estate & Taxes in Baxter. Contact Janie Weston at Janie@greaterlakesrealtors.com for more information or to register.
Thursday, October 4th
Distressed Properties and Counselling Sellers in Baxter. Contact Janie Weston at Janie@greaterlakesrealtors.com for more information or to register.
Wednesday, October 10th
Contracts and MN Distressed Properties in North Mankato. Contact Deb Brage at deb@rasminfo.com for more information or to register.
Wednesday, October 10th
Contracts and You be the Judge in Alexandria. Contact Sandy Thorson at gaaar1@centurylink.net for more information or to register.
Thursday, October 11th
MN Distressed Properties in Roseville. Contact the Anoka County Community Action Program at (763) 783-4724 for more information or to register.
Thursday, October 11th
Contracts in Eagan. Contact Keller Williams Integrity at (651) 379-2800 for more information or to register.
 MNAR 2012 Fall Broker Management Conference
Brokers!! Managers!! Managing a real estate office requires you to be informed on the latest issues and trends and we've prepared an outstanding program to do just that. And this year, for your convenience, we're taking it on the road!! We've reduced your driving time by scheduling the same program at three convenient locations:
- October 11th, Arrowwood Conference Center, Alexandria
- October 24th, Grand Casino Hinckley
- November 14th, Mystic Lake Casino
This year's sessions are:
What Brokers Need to Know about Data Security Wayne Gilbert, Instructor
Legislative Update Chris Galler, Paul Eger and Ryan Hamilton, Instructors
Hot Topics for Brokers Lynn Leegard, Instructor
5.5 hours real estate CE Credits, refreshment breaks and lunch are included. Program runs from 9:30am-4:30pm. Cost is $79 for members/$89 for nonmembers if you register up to three weeks before the Conference date.
Later than three weeks before the Conference date, cost is $99 for members/$109 for nonmembers.
On-Site registration is $119 for members/$129 for nonmembers.
The 2012 Fall Broker Management Conference is being sponsored by snap cap tech. Find out more!
Go to www.mnrealtor.com to register.
 MN CRS Chapter presents CRS 200: Business Planning and Marketing
Monday October 15th & Tuesday October 16th
Edina Realty Education Center: 6600 France Ave S #250, Edina, MN
Successful real estate agents know how to run a business. They know how to define their goals and have the business planning, budgeting and marketing skills to get them where they want to go. After taking this course, students will know how to think like a business owner, with the ability to develop a complete business plan with strategies they can implement immediately.
Course instructor is Chandra Hall, CDPE, DREI, MBA, ABR, CRS, GRI, Green, SFR, REOS
Cost: $199 ($45 discount for MN CRS Chapter Members)
This course has been approved for 16 hours of Real Estate CE.
For more information or to register, contact Peg Anderson at (952) 912-2664 or panderson@mnrealtor.com.
Washington Report
Reprieve for Rural Communities - More than 900 communities nationwide will not lose access to rural housing programs this fall, as expected.
On Sept. 25, the Office of Rural Development of the Department of Agriculture published an Administrative Notice delaying implementation of 2010 Census data for use in their programs through March 27, 2013. The programs of the Rural Housing Service (RHS) provide access to safe, affordable mortgage financing for lower-income rural families.
Without Congressional intervention, RHS was on the brink of reverting to a definition of “rural” that has not been updated since 1974. This outdated definition would have rendered more than 900 communities in 48 states ineligible for access to these valuable programs.
NAR has been working with Congress on grandfathering these communities. In the Senate, the Farm Bill includes an amendment by Senators Nelson (D-NE) and Johanns (R-NE), passed by voice vote without objection, that would have grandfathered existing communities for 10 years and moved the threshold for existing eligible communities to 35,000. In the House Rep. Fortenberry (R-NE) has a similar bill, and also lead the charge, with Rep. Hinojosa (D-TX), in circulating a letter that 100 Members of the House signed to House Leadership, urging them to include this provision in any legislation.
NAR will continue to work with Congress upon their return to advocate a 10-year grandfathering provision. While this notice from Rural Development extends eligibility through March 27, 2013, we would like long-term certainty for communities and rural families looking to purchase a home.
Rural Development Notice
NAR coalition letter to Senate
NAR coalition to House
Congressional Letter on Rural Housing
NAR Urges Federal Reserve to Improve Access to Mortgage Credit - On Monday, Sept. 17, 2012, NAR President Moe Veissi wrote to Federal Reserve Chairman Ben Bernanke regarding tight access to mortgage credit.
The letter was in response to the Fed's announcement of another round of quantitative easing commonly referred to as "QE3." The Fed announced that it would begin buying up to $40 billion a month in mortgage backed securities to reduce mortgage interest rates. President Veissi acknowledged the Fed's effort to target the housing economy. However, as the Fed Chairman himself has repeatedly noted, access to mortgage credit is tight and lending standards so onerous, that otherwise qualified borrowers are not getting mortgage loans.
In the letter, Veissi urged Bernanke to weigh in on three key rule proposals -- the Qualified Mortgage (QM), the Qualified Residential Mortgage (QRM), and the Basel III capital standards -- that are both putting a chill on lending and have the potential tighten credit further and possibly much further when implemented. All three individually and certainly together have the potential to tighten credit.
The comment period for the QM and QRM rules has closed and both rules must be finalized by Jan. 21, 2013. The Basel comment period closes Oct. 22, 2012.
NAR Letter to Fed Chairman Bernanke
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The MN Association of REALTORS® is teaming up again with Sun Country Airlines, the Hometown Airline, to offer REALTORS® a discount on travel to Orlando to attend the 2012 REALTORS® Conference & Expo. Use the promotion code “MNAR15” on Sun Country Airlines’ website www.suncountry.com to receive 15% off their lowest applicable fare. The discount is valid for all flights between Minneapolis and Orlando from November 6, 2012 until November 16, 2012.
The discount applies to coach class, but not First Class. Affordable upgrades are available during check-in. The discounted flights can be combined with outbound/return flights outside of the promotion dates, but only the flights segments within the promotion period are discounted. The discount can be used for both one-way and round-trip reservations. The special REALTOR® discount cannot be combined with other discounts, promotions, UflyRewardsPlus fares, Sun Country Vacations Cruise/Hotel packages, vouchers or gift certificates. It is not retroactive and cannot be applied to existing reservations. Standard Sun Country Airlines change fees, bag fees, etc. and all other policies apply.
Homes for All Documentary
Minnesota's affordable housing communities are an essential part of the state's economic and social health. Join us for an in-depth conversation with residents, experts and community leaders that will show you the many ways Minnesotan's benefit when we're able to provide homes for all. Produced by MN Housing Partnership, Metropolitan Consortium of Community Developers and MN Community Land Trust Coalition.
This program will air on the following dates and times on Twin Cities Public Television:
October 7th @ 3:00AM, 9:00AM and 3:00PM
BBB sees surge in complaints against Power4Home Pro
21 customer complaints filed in September alone
The Better Business Bureau of Minnesota and North Dakota (BBB) has noted a spike in complaints against Power4Home Pro, a solar and wind energy manufacturing company which claims on their website they can teach people how to “slash their power bill or eliminate it completely.” The company – which purports to be a Minnesota firm – sells DVDs and books that allegedly provide instructions on how to build and install energy-saving solar panels and windmills at home. Power4Home Pro has been the subject of 21 customer complaints just this month and has been awarded a BBB rating of “F.”
“The company’s money-saving claims sound intriguing, but consumers are reporting these savings prove to be non-existent and that the company’s training materials, if they arrive at all, offer little in the way of illuminating information,” said Dana Badgerow, President and CEO of the BBB of Minnesota and North Dakota. “What’s most concerning is that people seem to be seeing the company’s ads on reputable websites and ordering the training materials based on the reputation and reliability of these sites, rather than on the basis of the company’s own merits.”
Earlier this year, the BBB secret-shopped Power4Home Pro, and purchased their “system” for what was advertised at the time as a limited time offer of $57.96 – information Power4Home Pro claimed was worth over $700.00. The company sent the BBB secret shopper a DVD with step-by-step instructions and all other information was delivered in the form of PDF files. Despite the claims made on the company’s website, particularly the claim that anyone with basic technical knowledge could construct the panels and windmills, the video instructions contained multiple caveats and warnings that only “professionals” and “qualified personnel” should work with electricity, and “children should not be allowed near this equipment.”
The BBB’s review of the company’s training materials earlier this year also revealed the same information is available on the Internet – for free.
In the last three years, the BBB has processed 61 complaints against Power4Home Pro, with customers generally reporting non-receipt of – or problems accessing – ordered materials. Recent complaints have stated customers are only receiving their DVD’s, and not the promised books and manuals. Though the company promises a “100% money back customer satisfaction guarantee,” many consumers have reported difficulty obtaining refunds from Power4Home Pro. The company has responded to a majority of their complaints, generally by promising to ship materials or by providing refunds. As of September 25, 19 complaints are currently pending against the company. 11 complaints have been closed as unanswered.
The BBB offers consumers the following guidelines for investing in energy-saving options:
Determine if solar energy is right for you.
Due to the high costs associated with the initial investment of solar power, it is important to conduct a self energy audit to determine if solar energy is right for you. Usually, if your monthly bill is less than $100, consider other ways to save energy that cost less.
Consider all the costs associated with solar energy.
Ask about all the costs associated with the maintenance and upkeep of the system. Determine if the benefits and savings outweigh the costs over the long run.
Stay informed about state and federal incentive programs.
Be sure to understand the terms and conditions of the incentive programs and conduct your own research prior to signing a contract with an installer. For the latest information on federal programs, visit www.energystar.gov. At the state level, contact the Commerce Department.
Be cautious of installers that promise no out-of-pocket costs prior to reviewing your specific situation.
Be leery if an installer suggests obtaining credit for the full amount of the system even though they are promising very low or no costs due to rebates.
Make sure the roof of your home is equipped to sustain a solar panel system.
Even though a properly installed solar system will not damage your roof, you should make sure your roof is in good condition before you begin the installation to avoid any future problems.
Understand how your solar energy works.
You can take full advantage of the benefits in solar energy once you know how it works. For instance, panels facing south with no shade obstructions receive maximum exposure during the middle part of the day (9 a.m. to 3 p.m.), and therefore provide the greatest percent of energy. Significant savings occur when you have excess energy that is not consumed by your household. This excess energy can then be credited to your utility bill saving you money.
Discount tickets available to “Disney’s Phineas & Ferb: The BEST Live Tour Ever,” set for Sunday, October 21, 2012 at 1pm and 4pm at the Xcel Energy Center. Please go to https://secure.xcelenergycenter.com/GT/default.asp?Group=Minne91550 to conveniently make discount ticket reservations to this entertaining show.
 Free Expo Passes for You, Your Customers, Clients, Prospects, Family and Friends!
The Expo Guys are happy to supply you with plentiful "Admit 2 Free" EXPO Passes for you and your employees, friends and families. These passes allow them to attend our up-coming expos and seminars FREE of charge.
These FREE Passes are available in quantity, for as many as you request, while supplies last.
Download the order form, and fax back to (952) 929-9510.
Tickets for the following events are available:
HEALTHY LIFE EXPO:
October 20-21, 2012 @ Minneapolis Convention Center
HOME IMPROVEMENT & DESIGN EXPO
October 20-21, 2012 @ Minneapolis Convention Center
October 27, 2012 @ National Sports Center, Blaine
November 3, 2012 @ Maple Grove Community Center
For more information, visit www.MediaMaxEvents.com.
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