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SEBAR Legal News Update featuring News that's Relevant to YOUR Business!




If you have any questions, comments, or ideas, please email

Shannon@SEBrealtors.com

Letter of The Law | From The Mailbag

Settlement FAQ's

Source: Michigan REALTORS® (MR)

Window to the Law: Settlement Facts Videos

Question and answer video series about the

NAR settlement and new practice changes and MLS rules.

Visit our Website

Source: National Association of REALTORS® (NAR)

CONSUMER GUIDE TO CHANGES

Understanding Real Estate Practice Changes &

the Impact on the Consumer.

Home buyers and sellers have a wide range of choices. As a trusted source of advice, agents who are REALTORS® help home buyers and sellers as they navigate their home journey and make the choices that work best for them.

Visit Michigan REALTORS® Website to Read More!

Source: National Association of REALTORS® (NAR)

1.      Ten Legal Mistakes that Realtors® Make

2.      Marketing of Properties

3.      Team Advertising

4.      Legal Action Committee Update

5.      Broker Liability for Safety of Potential Buyers

6.      Salesperson Interest in Title Companies

7.      Ten Things Realtors® Should Know About Sellers Disclosure

8.      The Continued Evolution of Drone Law

9.      Residential Property Management – Not for Everyone 

Cliek HERE to Know More
Click to Visit Law Library

Source: Michigan REALTORS® (MR)

The following questions will help homebuyers and home sellers better understand the recent practice changes in residential real estate and what the changes mean for them. While these are intended to provide an overview, real estate transactions can take many forms. Additional detailed information can be found in subsequent FAQ sections.

Source: National Association of REALTORS® (NAR)

Helpful Guides From NAR

A Guide for Brokers
A Guide for Home Buyers
A Guide for Home Sellers

Source: National Association of REALTORS® (NAR)

From The Mailbag | Question of The Week


Each month, we are taking the most recently asked questions from From The Mailbag and putting them in E-News. 

QUESTION: I am a buyer’s broker on a deal where the listing broker has signed a Compensation Agreement Between Brokers agreeing to pay me 2% of the purchase price. The closing is tomorrow and I am being told that the seller cannot pay the entire listing commission amount. The listing broker says that the shortfall will be divided equally between the listing office and my office. Can the listing broker unilaterally reduce my commission? The listing broker is relying on the following language in the Compensation Agreement Between Brokers:

Listing Broker is not obligated to pay Buyer’s Broker if, through no fault of the Listing Broker, and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the Listing Broker to collect its compensation under the Listing Broker’s contract with the Seller.

 

ANSWER: The listing broker cannot unilaterally reduce the compensation amount that it has contractually agreed to pay to you. The listing contract is a separate contract. The above language—taken directly from the arbitration manual-- refers to the situation where the listing broker is not being paid enough to cover the obligation to you and would have to come up with money from its own pocket in order to cover the commission amount the listing broker has agreed to pay to you. 

For more legal Q&A, visit.law.mirealtors.com

Source: Michigan REALTORS (MR)

First-time homebuyers in Michigan have a new tool to help realize the dream of homeownership! Open a First-Time Homebuyer Savings Account today.

Source: First Home Michigan .Com

Fair Housing Course Requirement & M1

Begins January 1, 2025

As most of you are aware, the NAR Board of Directors approved a motion in 2023 that beginning in January 2025, all active (Status A and P) Realtors and Realtor Associates (Member Type R and RA) must take a fair housing course every 3 years.

 

The M1 Beta system has been updated so AMSs can start their testing and we have notified our M1 Tech distribution group and updated their developers documentation.

 

We wanted to let the associations know how this will work in M1 and answer any questions you may have and provide the following information.

 

POLICY

 

All active R/RA members must take a fair housing course every 3 years.

This requirement begins January 1 2025 and the first cycle will run January 1 2025 through December 31 2027.

 

For any member who does not meet this requirement by the deadline, the POEs will change the member’s status to the special status S (just as you do for COE) and by March 1 the POE will terminate the members (Status T) who have not met this requirement.

 

Realtor Emeritus are exempt starting the year after they are approved by Emeritus by NAR’s BOD (just the same as with NAR dues and the COE waivers).

 

There is no “new” fair housing course for New Members. The associations need to make sure that as part of their new member orientation their new member completes one of the fair housing courses.

 

Anything the member may have done for fair housing courses before January 1 2025 will not count so they cannot use a course they took in 2024 for example to count for this requirement.

 

PROCESS

 

There will be six options the member can choose from to meet this requirement. Four of those are hosted by NAR and NAR will add the course to M1.

 

The first cycle (2025-2027) will be called Cycle 8 to match up with COE which will also be Cycle 8 for consistency.

 

It is important to note that the option the member uses in a cycle cannot be re-used for a following cycle and must be completed within the cycle. So if, for example, if a member earns the AHWD certification, for it to count it must be earned within the cycle and cannot be used again for a future cycle.

 

The options are:

 

Fair Haven (Course Code FHVN). This is an online, free, self paced course hosted by NAR. NAR will add these records to M1. POEs will not be able to add, change or delete these records.

 

Note: this is not the same as the current Fair Haven. Fair Haven is currently being rewritten to be longer and contain more content and will be ready by January 2025.

 

Bias Override (Course Code BOVR). This course is live (in person or online) and is an NAR course. NAR will add these records to M1. POEs will not be able to add, change or delete these records.

 

At Home With Diversity Course Only (Course Code HWD). Member can take the AHWD course without going on to earn the certification. The “course only” option will count as a fair housing course. This is an NAR course and NAR will add these records to M1. POEs will not be able to add, change or delete these records.

 

At Home with Diversity Certification (AHWD). This remains as an NAR certification and NAR will continue to add this certification in M1. Please note a member can use this as an option only once and only for the cycle in which they earn this certification.

 

Fair Housing course (FAIRH) – associations can develop their own fair housing course for this requirement. When associations do this, they are responsible for adding this course code to M1

 

 Also, states can also work with their state licensing bodies to include our fair housing as part of their licensing process. Again, associations would be responsible for adding this to M1. In both cases, the Course Code is FAIRH.

 

Note: when developing your own course, the time length and content outline requirements have been set by NAR and you need to follow that when developing your course. That information will be included in the July issue of M1 News which will publish at the end of July.

 

As with COE, any POE can add a FAIRH for any member in M1.

 

Special note about C2EX: having the C2EX endorsement in and of itself is not an option for this requirement. However, part of earning the C2EX endorsement is completing the Fair Haven course. As an NAR course, NAR will add the Fair Haven course to M1, and again it must be taken within a cycle for it to count for that cycle, so you will see this represented in the M1 reports as Fair Haven.

 

TOOLS

 

We will have the following tools for POEs in place in M1 by the start of the cycle (January 2025).

 

Member record accordion: when viewing a member record in M1 you will see an accordion for Fair Housing that will show any FHVN, BOVR, HWD or FAIRH courses added to the member’s record. As AHWD is a Certification and will remain so, that will continue to appear in the Certification accordion.

 

Fair Housing Report: the M1 home page will have a Fair Housing report, very similar to the Code of Ethics one where the POE can run a ‘with’ or ‘without’ report and print or save as csv.

 

Fair Housing Dashboard: the M1 Insights Dashboard will have a Fair Housing dashboard, very similar to the Code of Ethics one where the POE can view Complete and Incomplete.

 

Please note there will be one difference with the Fair Housing reports and dashboards as opposed to the COE one. You may have members who decide to do more than one option. They may complete both the Fair Haven and Bias Override for example. When this happens they will appear on the report and dashboard as many times as the options they complete. The statistics on the dashboard will only count the member once.

 

Please be sure to watch the monthly M1 News between now and January for more information.

 

And be sure to contact us with any questions.

 

M1/Ecommerce Support Group

poesupport@nar.realtor

1-800-868-3225

Source: National Association of REALTORS® (NAR)

Fair Housing Education and Resources for Realtors®

April is Fair Housing Month, but each day is an opportunity to reaffirm our commitment to Fair Housing. In an effort to build upon NAR’s Fair Housing ACT Plan (ACT = Accountability, Culture Change, and Training), we encourage members to complete these available training opportunities:

 

 

Completing these four programs will empower Realtors® to confront their own biases and demonstrate a commitment to offering equal professional services to all. Through action and education, we can work together to end discrimination in housing.

 

Additionally, visit our Fair Housing Resources web page for a compilation of videos, articles and statewide education opportunities.

Source: National Association of REALTORSR® (NAR)

NAR's Board of Directors approved a change to the Code of Ethics training requirement, extending it from every two years to every three years. This extends the current cycle deadline from March 1, 2022, to Dec. 31, 2024.


REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of instructional time. The training must meet specific learning objectives and criteria established by the National Association of REALTORS®. 



Training may be completed through NAR’s online courses or through another method, such as online or classroom courses via local/state associations. Read the consequences for failing to complete Code of Ethics training.

LEGAL RESOURCE
Visit MIRealtors.com website
Source: Michigan REALTORS® (MR)

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Southeastern Border Association of REALTORS®
Shannon Harner, RCE, AHWD, C2EX, e-PRO, Chief Executive Officer
Lisa Horvath, e-PRO, MLS Director
Kyra James, Membership Director

Monroe Office
125 Cole Road
Monroe, MI 48162
734-242-6866

Downriver Office
Horizon Business Center West
20600 Eureka Road, Suite 510
Taylor, MI 48180
734-287-8060

Monroe Office Hours: Monday through Friday 8:30 am to 4:30 pm
Downriver Office Hours: Monday through Thursday 8:30 am to 4:30 pm