March April 2013 Frontrunner

Stigmatized Property Statute.....Page 3

www.HoganSchool.com MARCH /APRIL 2013

REAL ESTATE MORTGAGE APPRAISAL INVESTMENT� ��

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When coming to class is just too inconvenient. . .

4023 East Grant Road Tucson, AZ 85712520/327-6849 800/794-1390

[email protected]

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frontrunner

Hogan’s onlinerenewal classes are designed

for AZ Licenseesby AZ experts on AZ topics

At your convenience and with the click ofyour mouse, you will experience the samequality education with fun and flair thatonly Hogan School can deliver. So whatare you waiting for? Grab a cup of coffee,learn and enjoy the experience! We’reready when you are - your Renewal Hoursare waiting.

Take Hogan’sOnline CE!

For more informationand list of classes, see Page 3

Renewal Class Schedules.....Pages 5 thru 11

Fannie/Freddie Short Sales.....2

©2013 Hogan School of Real Estate 3March/April 2013

By Thomas A. StoopsStoops, Denious, Wilson & Murray, P.L.C.

New Analysis of Stigmatized Property Statute

Very recently the Arizona Court of Appeals, Division One,decided a case involving the stigmatized property statute,A.R.S. § 32-2156(A) (3), which is illustrative of some of theadvantages and pitfalls of the statute. The case involved theplaintiffs Lerner, who unknowingly purchased a home next to aregistered sex offender. When they found out what hadhappened they sued the sellers and the real estate brokersthat represented both sides in the transaction. The defen-dants, of course, moved to dismiss, alleging that the Lerners'claims of fraud, misrepresentation, and breach of fiduciaryduty were barred by the sales documents and by A.R.S. § 32-2156(A) (3). The superior court granted the motions and theLerners appealed.

In its appellate decision the Division One ruled that theclaims against the sellers for failing to disclose the presenceof a sex offender were barred, and rejected the Lerners'contention that the statute unconstitutionally abrogates theirright to sue for damages. Interestingly, the court put a gooddeal of emphasis on the limited dual representation agree-ment executed by the Lerners to bar the Lerners' claims forbreach of fiduciary duty against the brokers. Also interest-ingly, the Court of Appeals reversed the dismissal of the fraudclaim against the sellers and remanded it to the superior court.As to the fraud claim against the sellers, the Court of Appealsnoted that the sellers, the Curriers, did not tell the Lernersabout the sex offender next door, even though they knew thatthe Lerners had small children and wanted to live in a safeneighborhood. More importantly, it was alleged that when theLerners asked the Curriers why they were selling, the Curriers

24 hour Package (Broker* or Salesperson) $135

18 hour Package $105Individual 3 hour Classes $25

*Designated, delegated and self-employed brokers must take an additional 6 hours ofBroker Management Clinics for a total of 30 hours. These hours are not offered online.

said they wanted to move closer to friends. The Curriersprovided a standard Seller Property Disclosure Statement,answering all the standard questions but leaving blank thelast page of the disclosure, which asks, "What other material(important) information are you aware of concerning theProperty that might affect the buyer's decision-makingprocess, the Value of the Property, or its use?" and theCurriers left that section blank. Just above where the Lernerssigned to signify their receipt of the disclosure statement, thedisclosure specifically said that the buyer acknowledges thatby law, sellers, lessors and brokers are not obligated todisclose that the property is or has been located in the vicinityof a sex offender. The court also noted that affixed to thefront of the disclosure statement, titled Residential Seller

(Continued on Page 14)

Take Hogan’s Online CE!

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(Continued from Page 1)

• Green Real Estate: General

• Litigation in Real Estate: RE Legal Issues

• Short Sales & REO Properties: Agency Law

• Surviving Litigation in Real Estate: RE Legal Issues

• Top 10 Disclosure Issues: Disclosure

• Financial Issues in Contract Writing: Contract Law

• Broker Management Clinic #1 - Statutes & Rules:• Commissioner’s Standards

• Code of Ethics with Case Studies: Commissioner’s Standards

• Contract Law with Case Studies: Contract Law

• Dealing with the Multi-Culltural Client: Fair Housing

• Disclosure: Road Map for Real Estate: Disclosure

• Fair Housing Compliance: Fair Housing


Median Tucson House Rents for $1,125 in 31 days in 2012house rented for $1,125 per month. The average days onmarket was 44 days and the median days on market was31 days.

TownhomesUsing the MLS statistics for the same time period and

areas, I also looked at townhomes. In 2012, 375townhomes were rented. The average rental rate was$954 per month and the median was $900 per month.The average days on market was 48 days and themedian days on market was 36 days.

CondosUsing the MLS statistics for the same time period and

areas, the last category I looked at was condos. In 2012,298 condos were rented. The average rental rate was$820 per month and the median was $798 per month.The average days on the market was 60 days and themedian days on market was 44 days.

For single family homes, townhomes and condos, the2012 average and median rental rates increased slightlyfrom 2011. The 2012 average and median days onmarket were essentially unchanged from the 2011numbers. As is the case historically, the Tucson rentalrates for single family homes, townhomes and condosremain relatively flat.

The average and median days on market is an impor-tant factor to consider. This is because even when aproperty is priced correctly, it can take from one to twomonths to get it rented and occupied. In the rentalbusiness, time is money. Not just because of lost rent ormortgage payments that are not counter balanced by rentcoming in, but the risk of vandalism, yard care expensesand utility bills are also real costs of vacancy. The morecompetitively priced the home is, the more quickly it willrent.

If you or someone you know has a rental house or areconsidering purchasing a rental house, this informationshould help you make good decisions and provide aquick point of reference regarding the Tucson rentalmarket.

by Steve SchultzI recently evaluated the Tucson residential rental

market from January 2012 through December 2012using Tucson Association of Realtors Multiple ListingService (MLS) statistics. Although not all rentals arecaptured in the MLS, it is fair to say that the datacaptured is a representative sample.

Single Family HomesUsing the MLS statistics, from January 1st through

December 31st of 2012, 2,714 single family houseswere rented in the N, NW, NE, S, SW, SE, E, W and Careas as defined by MLS. Based on that, the averagehouse rented for $1,248 per month and the median

Steve Schultz is the DesignatedBroker for Blue Fox Properties inTucson, AZ and is actively involved inthe property management businessevery day. Blue Fox Propertiesspecializes 100% in the propertymanagement of single family homes,condominiums and townhouses.Steve is 1 of only 15 people in thestate of Arizona to hold the Residential

Management Professional (RMP®) designation from theNational Association of Residential Property Managers(NARPM®). Steve is also a landlord and real estateinvestor.


_ R E N E W A T H O N S _

April 2013 Renewathon

Fri Mar 15, 2013 BMC #2 - “Broker Policies” 3 Commissioner’s9am - 11:50am Jim Hogan, DREI StandardsMon. Mar 18, 2013 BMC #3 - “Supervision” 3 Commissioner’s9am - 11:50am Jim Hogan, DREI StandardsMon Mar 25, 2013 Fair Housing Do’s & Don’ts 3 Fair Housing8am - 10:45am Dan Carapellucci

Mon Mar 25, 2013 Out of the Line of Fire: Avoiding Professional Liability 3 Agency Law11am - 1:45pm Thomas Stoops

Mon Mar 25, 2013 From Contract to Closing 3 Contract Law2:30pm - 5:15pm Betsy Branyan

Tue Mar 26, 2013 Real Estate in Estate Planning - Is Your House in Order? 3 RE Legal Issues8am - 10:45am Mark Valentine, Esq.

Tue Mar 26, 2013 BMC #1 - “Statutes & Rules” 3 Commissioner’s11am - 1:45pm George Jenson StandardsTue Mar 26, 2013 Disclosure & Risk Reduction 3 Disclosure2:30pm - 5:15pm Cheryl Terpening, ABR, CRS, GRI

Wed Mar 27, 2013 Valuing A 1-4 Family Income Property 3 General8am - 10:45am Michael Ashurst

Wed Mar 27, 2013 Private Water Wells 3 RE Legal Issues11am - 1:45pm Gary L. Hix, R.G., CWD/PI

Fri Apr 12, 2013 BMC #1 - “Statutes & Rules” 3 Commissioner’s1pm - 3:50pm Richard Koevary StandardsMon Apr 22, 2013 BMC #2 - “Broker Policies” 3 Commissioner’s9am - 11:50am Jim Hogan, DREI StandardsWed Apr 24, 2013 BMC #3 - “Supervision” 3 Commissioner’s9am - 11:50am Jim Hogan, DREI StandardsThu Apr 25, 2013 Fair Housing Case Studies 3 Fair Housing8am - 10:45am Jim Strong

Thu Apr 25, 2013 Bullet Proof Contracts 3 Contract Law11am - 1:45pm Mike Monroe, Esq.

Fri Apr 26, 2013 Community Association Law 3 RE Legal Issues8am - 10:45am Carolyn Goldschmidt, Esq.

Fri Apr 26, 2013 RESPA & Loan Fraud: What You Don’t Know Can Hurt You 3 RE Legal Issues11am - 1:45pm Ashira Davis

Fri Apr 26, 2013 Disclosure & Risk Reduction 3 Disclosure2:30pm - 5:15pm Cheryl Terpening, ABR, CRS, GRI

Sat Apr 27, 2013 What Every Real Estate Professional Should Know About Green 3 Agency Law8am - 10:45am Jonna Douglas

Sat Apr 27, 2013 Pricing Properties Right 3 Agency Law11am - 1:45pm George Jenson

for Designated, Delegated or Self-Employed BrokersMarch 2013 Renewathon

*

MARCH 2013SALESPERSON’S & ASSOCIATE BROKER RENEWATHONS

6 EVENINGS + 2 DAY CLASSES – Does NOT include 9 hours of Broker Management

3 Day Renewathon – Does NOT include 9 hours of Broker Management

Thu Mar 7, 2013 BMC #1 - “Statutes & Rules” 3 Commissioner’s6pm - 8:50pm Jim Hogan, DREI Standards

Tue Mar 12, 2013 Understanding Water Availability, Use & Law 3 Disclosure6pm - 8:50pm William DeStefano

Thu Mar 14, 2013 Fair Housing Do’s & Don’ts 3 Fair Housing6pm - 8:50pm Dan Carapellucci

Tue Mar 19, 2013 Common Pitfalls in Writing the Contract 3 Contract Law6pm - 8:50pm Cheryl Terpening ABR, CRS, GRI

Thu Mar 21, 2013 Agency Case Studies 3 Agency Law6pm - 8:50pm Jim Strong


Tue Mar 26, 2013 Foreclosures, Trustee Sales, Short Sales and Deficiences 3 RE Legal Issues6pm - 8:50pm Timothy Remick, Esq.


Mon Mar 25, 2013 Fair Housing: Do’s & Don’ts 3 Fair Housing8am - 10:45am Dan Carapellucci


Mon Mar 25, 2013 From Contract to Closing 3 Contract Law2:30pm - 5:15pm Betsy Branyan

Tue Mar 26, 2013 Real Estate in Estate Planning - Is Your House in Order? 3 RE Legal Issues8am - 10:45am Mark Valentine, Esq.

Tue Mar 26, 2013 BMC #1 - “Statutes & Rules” 3 Commissioner’s11am - 1:45pm George Jenson Standards

Tue Mar 26, 2013 Disclosure & Risk Reduction 3 Disclosure2:30pm - 5:15pm Cheryl Terpening ABR, CRS, GRI


Wed Mar 27, 2013 Private Water Wells 3 RE Legal Issues11am - 1:45pm Gary L. Hix, R.G., CWD/PI

*Indicates approved for Appraisal Continuing Education credit.


*

APRIL 2013SALESPERSON’S RENEWATHONS

5 EVENINGS + 3 DAY CLASSES – Does NOT include 9 hours of Broker Management

Thu Apr 11, 2013 Hotline Case Studies 3 RE Legal Issues6pm - 8:50pm Jim Strong

Tue Apr 16, 2013 Disclosure & Risk Reduction 3 Disclosure6pm - 8:50pm George Jenson

Thu Apr 18, 2013 Agency: Duties, Responsibilities & Disclosure 3 Agency Law6pm - 8:50pm Richard Koevary

Tue Apr 23, 2013 Writing Contracts with Confidence 3 Contract Law6pm - 8:50pm Timothy Remick, Esq.

Thu Apr 25, 2013 So, You Want to Sell Land? 3 Commissioner’s2:30pm - 5:15pm Bob Benedon, ALC, CCIM Standards

Thu Apr 25, 2013 Lessons in Diversity 3 Fair Housing6pm - 8:50pm Cheryl Terpening ABR, CRS, GRI

Sat Apr 27, 2013 What Every Real Estate Professional Should Know about Green 3 Agency Law8am - 10:45am Jonna Douglas

Sat Apr 27, 2013 Pricing Properties Right 3 Agency Law11am - 1:45pm George Jenson

Thu Apr 25, 2013 Fair Housing Case Studies 3 Fair Housing8am - 10:45am Jim Strong

Thu Apr 25, 2013 Bullet Proof Contracts 3 Contract Law11am - 1:45pm Mike Monroe, Esq.

Thu Apr 25, 2013 So, You Want to Sell Land? 3 Commissioner’s2:30pm - 5:15pm Bob Benedon, ALC, CCIM Standards

Fri Apr 26, 2013 Community Association Law 3 RE Legal Issues8am - 10:45am Carolyn Goldschmidt, Esq.

Fri Apr 26, 2013 RESPA & Loan Fraud: What You Don’t Know Can Hurt You 3 RE Legal Issues11am - 1:45pm Ashira Davis

Fri Apr 26, 2013 Disclosure & Risk Reduction 3 Disclosure2:30pm - 5:15pm Cheryl Terpening ABR, CRS, GRI

Sat Apr 27, 2013 What Every Real Estate Professional Should Know about Green 3 Agency Law8am -10:45am Jonna Douglas

Sat Apr 27, 2013 Pricing Properties Right 3 Agency Law11am -1:45pm George Jenson

* Indicates approved for Appraisal Continuing Education credit.

3 Day Renewathon – Does NOT include 9 hours of Broker Management


MARCH 2013 CONTINUING EDUCATIONHOGAN SCHOOL OF REAL ESTATE, INC. 4023 EAST GRANT ROAD, TUCSON, AZ 85712(520) 327-6849 (800) 794-1390 FAX (520) 325-8950 www.hoganschool.com

For salespersons, 24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law,3 hours Disclosure, 3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT

the exact same course. The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.Designated, self-employed and delegated brokers are required to attend a 9-hours of Broker Management Clinic with every

two year renewal for a total of 30 hours.

Pre-Registration discount now available:You may pre-pay and register for your renewal classes and receive the following discount:

30 hours - $220 27 hours - $200 24 hours - $175 21 hours - $150 18 hours - $13515 hours - $115 12 hours - $90

** Indicates Excluded from the Prepaid Packages.* Indicates Approved for Appraisal Continuing Education credit.


Mar 7 BMC #1 - “Statutes & Rules” Jim Hogan, DREIThu Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards6PM - 8:50PM every two years and new brokers prior to license activation. $25.00

Mar 12 Understanding Water Availability, Use & Law William DeStefanoTue Learn what to do as a real estate professional on water knowledge and how to 3 Disclosure6PM - 8:50PM better serve the needs and wants of your clients. $25.00

Mar 14 Fair Housing: Do’s & Don’ts Dan CarapellucciThu This class will assist licensees and their clients in dealing with today’s complex 3 Fair Housing6PM - 8:50PM Fair Housing issues by familiarization with Fair Housing laws and application. $25.00

Mar 15 BMC # 2 - “Broker Policies” Jim Hogan, DREIFri Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards9AM - 11:50AM every two years and new brokers prior to license activation. $25.00

Mar 18 BMC #3 - “Supervision” Jim Hogan, DREIMon Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards9AM - 11:50AM every two years and new brokers prior to license activation. $25.00

Mar 19 Leasing for Single Family Homes Steve SchultzTue This class is designed for both the person just beginning and the experienced 3 Contract Law1PM - 3:50PM property manager currently managing single family homes. $25.00

Mar 19 Common Pitfalls in Writing the Contract Cheryl Terpening ABR, CRS, GRITue This class contains information regarding the common problems real estate 3 Contract Law6PM - 8:50PM licensees encounter when drafting the contract. $25.00

Mar 21 Agency Case Studies Jim StrongThu Agency relationships & duties to consumers will be covered through the most 3 Agency Law6PM - 8:50PM recent case studies. $25.00

Mar 22 Intro Contract Writing Cheryl Terpening ABR, CRS, GRIFri Learn how to write listings and purchase contracts. Mandatory for new agents for 6 ( 3 Contract Law/9AM - 3:50PM license activation. 3 RE Legal Issues)

$50.00

Mar 25 Fair Housing: Do’s & Don’ts Dan CarapellucciMon This class will assist licensees and their clients in dealing with today’s complex 3 Fair Housing8AM - 10:45AM Fair Housing issues by familiarization with Fair Housing laws and application. $25.00

Mar 25 Out of the Line of Fire: Avoiding Professional Liability Thomas StoopsMon Learn to identify duties when acting in a fiduciary relationship. Specific Arizona case 3 Agency Law11AM - 1:45PM law will be discussed. Broker liabilities will be discussed and attendees will be able $25.00

to identify potential liability issues.

Mar 25 From Contract to Closing Betsy BranyanMon This class will emphasize seller, buyer and agent responsibilities during the process 3 Contract Law2:30PM - 5:15PM of executing a contract and converting it into a successful closing. $25.00


Mar 26 Real Estate in Estate Planning - Is Your House in Order? Mark Valentine, Esq.Tue An overview of estate planning, investment strategies and tax & trust strategies. 3 RE Legal Issues8AM - 10:45AM $25.00

Mar 26 BMC #1 - “Statutes & Rules” George JensonTue Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards11AM - 1:45PM every two years and new brokers prior to license activation. $25.00

Mar 26 Disclosure & Risk Reduction Cheryl Terpening ABR, CRS, GRITue This course includes detailed discussions on the problems agents encounter, 3 Disclosure2:30PM - 5:15PM the disclosures that need to be made to consumers and risk reduction strategies $25.00

that benefit consumers and real estate licensees.Mar 26 Foreclosures, Trustee Sales, Short Sales and Deficiences Timothy Remick, Esq.Tue This class will instruct agents on the intricacies of foreclosures, trustee sales, 3 RE Legal Issues6PM - 8:50PM foirfeitures, short sales and the consquent issues of deficiencies and taxes. $25.00

Mar 27 Valuing A 1-4 Family Income Property Michael AshurstWed This course covers the basic concepts of understanding the risks and opportunities 3 General8AM - 10:45AM available in the investment of 1 to 4 family properties. $25.00

Mar 27 Private Water Wells Gary L. Hix, R.G., CWD/PIWed Gary’s class covers both private and shared water wells that are inspected and 3 RE Legal Issues11AM - 1:45PM tested during sales and transfers of real property. He presents a broad collection of $25.00

relevant issues and must know facts for real estate professionals and appraisers.

Take Charge of your Career -Get your Broker's License!

There are more benefits to becoming a Broker than owning a real estate company.If you have 3 years as an active licensed sales person -

now is a great time to take yourself to the next level.

Here are some reasons for obtaining your broker's license:• It is the most recognized real estate designation.• It is recognized as a specialty in the real estate industry.• You can advertise on your cards and marketing materials, Broker or Associate Broker and set yourself

apart from the competition.• You want to be the specialist. The law of marketing is "if you can't be first in an area, be a specialist

in the area."

Obtaining your broker's license can open many doors to your future.

JUNE 4TH - JULY 10TH(6 Weeks)

Tuesday & Wednesday8:45am - 4:30pm

• The Hogan "Study Smart" workbook, which makes passing the test easy.• 9 hours of BROKER MANAGEMENT CLINICS (required by ADRE to activate broker license)

• 5% discount for Hogan bookstore items• In class & take home quizzes to get you test ready.

• Six months to complete the course & the opportunity to take the course again at no extra charge.• Instructors who are very accessible for answering questions.

• Office staff that will assist you with submitting necessary Department of Real Estate paperwork.

Tuition $659 and includes:

*

10 ©2013 Hogan School of Real Estate

APRIL 2013 CONTINUING EDUCATION

** Indicates Excluded from the Prepaid Packages.* Indicates Approved for Appraisal Continuing Education credit.

March/April 2013

Apr 11 Hotline Case Studies Jim StrongThu Review case studies and gain a better understanding of the latest interpretations 3 RE Legal Issues6PM - 8:50PM and applications of real estate law and the use of the AAR Residential Purchase $25.00

Agreement.

Apr 12 BMC #1 - “Statutes & Rules” Richard KoevaryFri Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards1PM - 3:50PM every two years and new brokers prior to license activation. $25.00

Apr 16 Disclosure & Risk Reduction George JensonTue This course includes detailed discussions on the problems agents encounter, the 3 Disclosure6PM - 8:50PM disclosures that needs to be made to consumers and risk reduction strategies $25.00

that benefit consumers and real estate licensees.

Apr 18 Agency: Duties, Responsibilities & Disclosure Richard KoevaryThu This course will have real estate professionals understanding their fiduciary duties 3 Agency Law6PM - 8:50PM to their buyers and sellers. $25.00

Apr 19 Introduction to Property Management Steve Schultz &Fri For both the new and experienced property manager, this course will inform you of Debbie Hightower1PM - 3:50PM many items to be considered and addressed in property management. 3 General

$25.00

Apr 22 BMC #2 - “Broker Policies” Jim Hogan, DREIMon Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards9AM -11:50AM every two years and new brokers prior to license activation. $25.00

Apr 23 Writing Contracts with Confidence Timothy Remick, Esq.Tue This class will review contract law principles, the current contract and writing the 3 Contract Law6PM - 8:50PM contract. $25.00

Apr 24 BMC #3 - “Supervision” Jim Hogan, DREIWed Designated, delegated and self-employed brokers are required to take this course 3 Commissioner’s Standards9AM -11:50AM every two years and new brokers prior to license activation. $25.00

Apr 25 Fair Housing Case Studies Jim StrongThu Get information on the latest fair housing laws from new fair housing case studies. 3 Fair Housing8AM -10:45AM $25.00

Apr 25 Bullet Proof Contracts Mike Monroe, Esq.Thu Mike will focus on the necessary legal ingredients of an enforceable contract. 3 Contract Law11AM -1:45PM $25.00

Apr 25 So, You Want to Sell Land? Bob Benedon, ALC, CCIMThu Bob will aid you in locating the property, determining value, anticipating and solving 3 Commissioner’s Standards2:30PM -5:15PM problems, and effectively market a parcel of land. $25.00

Apr 25 Lessons in Diversity Cheryl Terpening ABR,CRS,GRIThu Fair housing and issues of diversity are emerging due to immigration issues. Learn 3 Fair Housing6PM - 8:50PM how to apply the evolving demographics which are changing our business. $25.00

HOGAN SCHOOL OF REAL ESTATE, INC. 4023 EAST GRANT ROAD, TUCSON, AZ 85712(520) 327-6849 (800) 794-1390 FAX (520) 325-8950 www.hoganschool.com

For salespersons, 24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law,3 hours Disclosure, 3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT

the exact same course. The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.Designated, self-employed and delegated brokers are required to attend a 9-hours of Broker Management Clinic with every

two year renewal for a total of 30 hours.

Pre-Registration discount now available:You may pre-pay and register for your renewal classes and receive the following discount:

30 hours - $220 27 hours - $200 24 hours - $175 21 hours - $150 18 hours - $13515 hours - $115 12 hours - $90


Apr 26 Community Association Law Carolyn Goldschidt, Esq.Fri Familiarize yourself with laws and principles that apply to condominiums, planned 3 RE Legal Issues8AM - 10:45AM communities, cooperatives, and other real estate developments that are governed $25.00

by HOAs.

Apr 26 RESPA & Loan Fraud: What You Don’t Know Can Hurt You Ashira DavisFri This course will cover many of the areas where real estate licensees could be 3 RE Legal Issues11AM - 1:45PM violating RESPA and give the licensee direction on how to follow Federal law $25.00

in these areas.

Apr 26 Disclosure & Risk Reduction Cheryl Terpening ABR,CRS,GRIFri This course includes detailed discussions on the problems agents encounter, the 3 Disclosure2:30PM - 5:15PM disclosures that need to be made to consumers and risk reduction strategies that $25.00

benefit consumers and real estate licensees.

Apr 27 What Every Real Estate Professional Should Know about Green Jonna DouglasSat Learn how to make skillful and careful representations about the environment 3 Agency Law8AM - 10:45AM and green features of properties. $25.00

Apr 27 Intro Contract Writing Jerri SzachSat Learn how to write listings and purchase contracts. Mandatory for new agents for 6 ( 3 Contract Law/9AM - 3:50PM license activation. 3 RE Legal Issues)

$50.00

Apr 27 Pricing Properties Right George JensonSat Listings not selling? Sellers not rational? How can you meet your obligations to your 3 Agency Law11AM - 1:45PM clients but deliver them the “dose of reality” they need in pricing their property? $25.00

Apr 29 Short Sales and Foreclosures: What Real Estate Professionals Need to Know Jim Hogan, DREIMon Knowing how to help sellers maneuver the complexities of short sales and foreclosure 7 RE Legal Issues8:30AM - 4:30PM opportunities are not merely good skills. Agents with the proper tools and training $99.00

can use these specialty areas to build their business for the long term.

Short Sales & Foreclosures Resource SFR® Certification

Monday, April 29, 20138:30am – 4:30pm

7 hrs RE Legal Issues credit Tuition - $99For many real estate professionals, short sales and foreclosures are the new “traditional”

real estate transactions. Knowing how to help sellers maneuver the complexities of short sales, as well as help buyers pursue short sale and foreclosure opportunities are not merely

good skills to have – they are critical!

Becoming SFR Certified:1. Be a member in good standing of NAR

2. Complete REBAC’s Short Sales and Foreclosure Course

3. Complete three 1-hour Webinars OR complete HAFA Short Sales - U.S. Treasury, Fannie Mae, and Freddie MacPrograms Course OR REO Properties: Responsibilities, Education, and Opportunities for Real Estate Professionals

4. Submit application - $175 application fee (no recurring dues to maintain certification)

The Short Sales and Foreclosures Resource certification, (SFR® )gives you a road map for understanding how to:

• Counsel sellers facing foreclosures• Qualify sellers for short sales• Develop a short-sale package• Negotiate with lenders

• Tap into buyer demand• Safeguard your commission• Limit risk• Protect buyers

**


What’s New with Fannie/Freddie Short Sales? by Ken Ryan, Long Realty Short Sale Facilitator

Ken Ryan is a native Tucsonan with overforty two years in the real estate industry.Twenty nine of those years were as ahomebuilder/developer and fourteen yearsas an associate broker. Ken was a BranchManager with Long Realty for eight yearsand recently semi-retired to begin a newposition with Long as Long Realty ShortSale Facilitator. In this new position, Kenresearches, updates, communicates andtrains Long Realty agents regarding shortsale programs, issues, solutions andstrategies. Ken is the Co-chair of the Short

You may or may not be aware that both Fannie Maeand Freddie Mac have made some very significantchanges/additions to their short sale programs.

Officially November 1, 2012, both Fannie and Freddiepreviously announced "enhancements" became effec-tive. Since both Fannie and Freddie attempt to "mirror"each other, most of these enhancements are the samefor both programs. Below are just some of the newguidelines:• Both Fannie and Freddie HAFA programs that were

initiated August - 2010, expired as of 12/31/12, however, many of the HAFA conditions carried over to theirexpanded short sale programs.

• Both Fannie and Freddie short sale programs nowallow for borrowers, based upon specific criteria, to beconsidered for short sale even if said borrower is notdelinquent in their mortgage payments.

• Servicers must insure closing of a short sale within 60calendar days from purchase offer approval.

• If a borrower is 90 plus days delinquent AND has acredit score of less than 620, said borrower shall bereviewed within the "Streamlined Documentation"criteria. Servicer does not have to verify a hardship norrequired to obtain a complete Borrower ResponsePackage.

• Based upon specific criteria, servicers now have direct

These are just a few of the enhancements. I amproviding a link below for some Q & As that Freddie hasprovided. There is some valuable information withinthese questions and answers. Look at question number22 regarding deficiency judgments. Just highlight the linkand place in your browser to open. Keep in mind the Q &As are specific for the servicers AND generally, theywould be the same for Fannie Mae as well. Good luck!If you have questions, you can always send me anemail. My address is [email protected].

http://www.freddiemac.com/singlefamily/service/short_sales_FAQ.html

Sale resource Committee for Long and has been a member of theAAR Professional Standards Committee for five years.

authority to approve/counter/reject short sales withoutgoing back to Fannie or Freddie.


APPRAISAL CONTINUING EDUCATION SCHEDULE

MARCHMar 27 Private Water Wells Gary L. Hix, R.G., CWD/PIWed Gary’s class covers both private and shared water wells that are inspected and tested 3 hours11AM - 1:45PM during sales and transfers of real property. He presents a broad collection of relevant $25.00

issues and must-know facts for real estate professionals and appraisers.

Appraisal Online Continuing EducationForeclosure Basics for Appraisers

Appraisal of 2-4 Family & Multi-Family Properties

Covering all the bases in residential reporting

Tuition $119 per classOR purchase

a 21 hour course package for $319Each course is 7 hours credit

http://hoganschool.fastclass.com/

Appraisers are required to complete 28 hours of education every two years for renewal and a 7-hourUSPAP Course must be taken as part of the 28 hours every two years.

Pre-Registration Discount now available: You may and register for your renewal classes and receive the following discount:24 hours - $175 21 hours - $150 18 hours - $135 15 hours - $115 12 hours - $90

** Indicates Excluded from the Prepaid Packages.

*


disclose that a sex offender lived next door to the home theywere negotiating to buy, the Lerners expressly agreed thatDMB had no obligation to make that disclosure." The courtwent on to rule that the dismissal of the claims against thereal estate agents involved was upheld.

What lessons should the public and particularly real estateprofessionals take from this case? Assuming that it is notreviewed by the Arizona Supreme Court, this constitutes afinding about the constitutionality of the stigmatized propertylaw and upholds it. However, it clarifies that the statute doesnot allow specific misrepresentations with regard to thestigmatized property. Therefore, a fraud case will lie if theseller or the broker lies about the condition of the property.Even though there may not be a duty to speak there isobviously a prohibition against lying.

A more complicated analysis arises from the actions ofbreach of fiduciary duty. Relying on the limited dual represen-tation language, the court determined that it was not a breachof fiduciary duty for the agent to fail to disclose to its principal,the buyer, that there was a sex offender next door. But thecourt did assume that DMB otherwise would have had a dutyto disclose to the Lerners that a sex offender lived next door.This assumption is not a finding by the court, but leaves openthe issue of what the result would have been absent thelanguage of the limited dual representation agreement. Inother words, it is quite possible that a real estate agentrepresenting a buyer with no limited dual representationagreement might be put in a position of a breach of fiduciaryduty had that agent known about the existence of a sexoffender living next door and not disclosed it. Based on thelanguage in the case, however, it should probably also beassumed that an agent representing a buyer who has asigned buyer/broker agreement with similar language statingthat agents do not have the obligation to disclose the exist-ence of sex offenders, would be upheld by the court. Pre-sumably, without a fiduciary obligation, an agent representingonly the seller would have no obligation to make a disclosurebut, of course, would not have the right to lie about any of theissues related to the stigmatized property.

This case seems to lend even greater importance to theexecution of a limited dual representation agreement wherethere is any question as to whether or not there is dualagency, and would also seem to lend more importance to theexecution of a buyer/broker agreement in writing whichrelieves the buyer's agent of the obligation to disclose theissues covered under the stigmatized property law.

Advisory, also references the stigmatized property law, andwarns that the law does not protect a seller who makes anintentional misrepresentation. For example, if you wereasked whether there has been a death on the property andyou know there has been such a death, you should notanswer "no" or "I don't know"; instead you should eitheranswer truthfully or respond that you are not legally requiredto answer the question.

Probably the most significant portion of the decision, forreal estate licensees, relates to the fact that both couples, thebuyers and the sellers, agreed to a dual representationagreement with DMB Realty, LLC. Under its terms, DMBpurported to undertake limited representation of each of themin the sale. In addition to the standard warnings about thepossibility of conflicts and the duties of loyalty, obedience,disclosure, and confidentiality, it specifically noted in 3,"Pursuant to A.R.S. § 32-2156, Sellers, Lessors and Broker/Licensee(s) are not obligated to disclose that the SubjectProperty is or has been . . . located in the vicinity of a sexoffender."

In making its decision, the Court of Appeals spent moretime analyzing the constitutionality of the statute than mighthave been expected. Essentially, the determination turnedon whether A.R.S. § 32-2156(A) (3) violates the anti-abroga-tion clause of the Arizona Constitution. This analysis dealtwith Article 18, Section 6 of the Arizona Constitution whichprovides that the right of action to recover damages forinjuries shall never be abrogated and the amount recoveredshall not be subject to any statutory limitation. Citing to earliercases, the court noted that the first thing it needed to deter-mine in deciding whether or not the statute violates the anti-abrogation clause was whether the right of action at issuewas among "those wrongs traditionally recognized at com-mon law." Going back to territorial days, the court stated, "Asapplied here, a buyer in territorial Arizona who was not in aspecial relationship with a seller could not sue the seller forfailing to disclose a latent defect." The court then stated, "theLerners' claim for negligent failure to disclose is not protectedby the anti-abrogation clause. We cannot conclude the claim'evolve[d] from common law antecedents.'" Importantly, thecourt did find that the fraud claim against the sellers survived.

When it came to the allegation against DMB for breach offiduciary duty, it was alleged that DMB breached its fiduciaryduty to them by failing to disclose the presence of the sexoffender thereby protecting the Curriers' interests over theirown. The court recited the principle that "If it can do sowithout violating a superior duty to another, a broker alsomust disclose facts it 'knows or has reason to know that theprincipal would wish to have . . . or [if] the facts are materialto the agent's duties to the principal.'" The court noted thatthe broker's fiduciary duty to disclose material information isnot necessarily diminished by a dual agency situation asoccurred in this case. However, the range of duties of abroker in the absence of fraud can be limited by contract.The court emphasized specific emphasis that the dualrepresentation agreement also provided that the, "partiesunderstand and consent . . . [that] Pursuant to A.R.S. § 32-2156, [DMB] [is] not obligated to disclose that the SubjectProperty is or has been . . . located in the vicinity of a sexoffender." The court went on to say, "Assuming, therefore,that DMB otherwise would have had a duty to the Lerners to

New Analysis of Stigmatized Property Statute(Continued from Page 3)

Thomas Stoops graduated from theUniversity of Arizona with a B.A. in1973, and then with a J.D. in 1976.He was admitted to the State Bar ofArizona in 1976. He practices law inReal Estate, Commercial Transac-tions, and Litigations. Thomas is thefounding and managing member ofthe firm Stoops, Denious, Wilson andMurray, P.L.C., with offices in Phoenixat 350 E. Virginia Ave., Suite 100,Phoenix, AZ 85004, and Tucson at10961 E. Linden, Tucson, AZ 85749.Telephone: (602) 274-7700 or tollfree 877-762-9529; Email: [email protected].


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By Jim HoganThe decision was made! I had sold homes for two years

and taught real estate for one. I wanted my own business,so opening a real estate school was a natural for someonewith a BS degree in Geology. Wasn't it? I needed a location!I remember driving Tucson's major streets at 10 mph lookingfor "Space Available" signs. No luck! But on Friday the 13th,my mail said that Pima Mortgage was moving. I knew theirspace on Swan and Speedway was just right. It was, andGlen Mangels (Greater Arizona Realty) said I could have all600 square feet of it! That's enough for an office, classroom,restroom and storage area. Wasn't it?

I needed a license!In those days, real estate schools were licensed by the

Arizona Board of Private and Technical Schools. Theapplication was a cinch but the $10,000 bond wasn't. I hadto go before the entire board in Phoenix, two of whosemembers had the biggest schools in Tucson: Ed Ford (FordSchools) and Morris "Mac" Benisch (Tucson School of RealEstate). That would be no problem. Would it?

I needed students!I could meet my overhead and bring home enough bacon

with 30 students per month. I would teach both day andnight classes to keep costs down. The first night class hadfour students and the day class two. The next month enroll-ment halved. Two in the evening and one in the morning.In December we had no students. But one did come in andprepay for class in January. Two days later he called towithdraw because the book looked too hard. I couldn't' lethim drop! I'd already spent his tuition. After 45 minutes onthe phone, I finally eased his fears. Decreasing enrollmentindicates success. Doesn't it?

I needed therapy!I know I was a good teacher but was I a good business-

man? I knew that brokers would refer students, but I fearedcontacting and meeting the brokers. That was all too muchfor a 27-year-old to handle. Wasn't it?

Luckily, caring brokers and agents referred manystudents who passed the exam with flying colors. So, in1976 we moved to Grant Road. That was the year JimChapman taught his first class for us.

1985 was the year of the big remodel. Our femalestudents of today will never know the thrill of an unheatedladies room in February. Nor will anyone remember thatyou walked down stairs to get into our office. 1986 broughtthe Tax Reform Act and from 1987 to 1991, half of Tucsonseemed to go bankrupt, move to California, or both. The1990s through today brought boom times and the biggestbust since the 1930s.

Now it's 2013, our 40th year. WOW! There are so manypeople to thank. First our staff, Misty and Jenny. Theyare the BEST! We would be lost without them. Second,our instructors, the finest!! Richard Koevary, DanCarapellucci, George Jenson, Mike Ashurst and CherylTerpening. Your eloquence and dedication are greatlyappreciated. Also, kudos to all of our continuing educationinstructors. We hope that our students appreciate theirpresentations as much as we appreciate them. And ofcourse I would be remiss not to mention Jim Chapman,who passed away in April 2011. We miss you Jim.

Finally, grateful and sincere thanks to you, our students.Thanks for passing the test, laughing at our jokes, callingwhen you have questions, and making us a continuingpart of your real estate careers. It's impossible to name allof the wonderful studentswho have contributed to oursuccess but I must acknow-ledge Patsy Bradley, JudyMurr, Charles Osment, RoyKalak, Dennis Kesmeisterand Ray Michand. FromAugust, 1973, they are thesix original Hogan's Heroes.

16 ©2013 Hogan School of Real Estate

40Jim Hogan, Jenny Hogan-Lizarraga and Esther Hogan

40 years ofReal EstateEducation

March/April 2013

March April 2013 Frontrunner

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Transcript of March April 2013 Frontrunner