Legally speaking: Can agents get paid directly on BPOs?

By Peg Ritenour, OAR Vice President of Legal Services/Administration

The OAR Legal Assistance Hotline receives an array of real estate-related legal questions — including license law issues, disclosure, contract law, ethics and commission problems, among others. In an effort to help you work within the law, our “Legally Speaking” series spotlights some of the timely questions that are being asked by REALTORS. The following addresses receiving compensation for a BPO… 

Q: My agents are often asked by lenders who have acquired property through foreclosure and other owners to provide an informal opinion on the value of their property. These are usually referred to as a BPO or CMA. Can my agents do this on their own and be paid directly or does payment have to be run through my brokerage?

A: Under Ohio license law, any acts that require a real estate license must be performed by a real estate agent in the name of the brokerage with which the agent is affiliated. Those acts requiring a license are set forth in Ohio Revised Code Section 4735.01. Although it may be surprising, providing an opinion as to the value of real property for a fee or other consideration is NOT an activity that requires a real estate license. (Of course providing an appraisal, may require an appraiser certification or license.)

Because providing an opinion on the value of real property does not require a real estate license, according to the Ohio Division of Real Estate and Professional Licensing that activity does NOT need to be performed by an agent in the name of the brokerage and the agent can be compensated directly for that service. The only exception to this is if the opinion of value or comparative market analysis is part of a transaction. If it is, then under Ohio Revised Code Section 4735.21 the compensation must be received in the name of the brokerage.

So to summarize, as long as the fee is not part of a transaction, an agent can be paid directly for doing a CMA or BPO. Of course a brokerage can require that BPOs be done through the brokerage as a matter of brokerage policy. In making a decision on whether to adopt a policy requiring affiliated agents to handle BPOs through the brokerage, it is recommended that brokers check with their E&O insurance carrier regarding coverage.

Tags: legal, Legally Speaking

Coaching Corner: Y U?

By “Coach” Marilou Butcher Roth

Yes, that is what I meant to ask — WHY YOU?

As you may be aware, The Ohio Association of REALTORS is launching a Leadership Academy beginning this April, which has been developed for members that wish to enhance their leadership skills in all areas of their lives. The five leadership modules will give you tools and awareness that will greatly assist you in any leadership role that you may undertake. This may be within your local, state or national association, or it may be within your community.

Perhaps you feel that association leadership is not your chosen direction quite yet — that’s OK. I want you to consider how important leadership skills are within your real estate business, which directly impacts our industry in a favorable way. And, as a bonus, you will quickly find that everything you learn will flow over into your personal life as well, bringing new insights and confidence into all that you do. So now, let’s go back to my original question of “why you?”

The speakers for each module are nationally recognized presenters and have been carefully chosen to bring the greatest value possible to each session. Within each module, you will find the content to be both rich and enjoyable:

Module 1 — Leading Myself — is focused on learning more about you and what qualities you bring to any leadership role. We all have qualities that benefit us and this first session will look more deeply into identifying which qualities come more easily to you and which ones require a bit more focus.

Module 2 — Leading Others — expands what we have learned about ourselves and takes it to the next level of how we lead others. This particular module is part of NAR Leadership Series and has been well received by countless REALTORS.

Module 3 — Leading in an Organization — will present the puzzle pieces that we need to know and put them together in a way that will bring us more in tune with how organizations are run and our role within the operation.

Module 4 — Leading the Industry — takes us deeper into the details of leadership, focusing on authentic and effective communication, productivity and working from a more impactful place.

Graduation — Putting It All Together — circles us back to the beginning, connecting all of the dots of the past four modules and celebrating our success!

Academy Logo 224 sizeIf this information resonates with you, more information can be found by clicking here. You’ll be able to review further details and requirements, as well as complete the application to be a part of our inaugural Leadership Academy class. The deadline to apply is February 14, so don’t delay in taking action. There is also an Advisory Board available to answer any questions or concerns you may have, so don’t hesitate to reach out!

So, now I ask…why not you?

 

Marilou Butcher Roth is the owner of The MBR Group, a coaching and training company working primarily with REALTORS who have a desire to work and live from a more inspired place. She is also the Broker/Owner of Group REALTORS in Cincinnati.

Marilou is a member of the OAR Board of Directors and past chairman of the organization’s Communications Committee. Feel free to contact Marilou to see if coaching is right for you: Marilou@mbr-group.com

 

Tags: Coaching Corner, training

Voter registration deadline for Ohio’s March primary approaching

By Paul Glass, OAR Director of Political Affairs

A friendly reminder that — Tuesday, Feb. 16 — is the deadline to register to vote in Ohio’s upcoming March 15 primary election.

This year’s ballot includes:

  • Electors for President and Vice President
  • U.S. Senator (1)
  • Representatives to Congress (all 16 districts)
  • State senators (even-numbered districts)
  • State representatives (all 99 districts)
  • County commissioners (2 each to full terms)
  • County coroner
  • County engineer
  • County prosecutor
  • County recorder
  • County sheriff
  • County treasurer
  • Justices of the Ohio Supreme Court
  • Court of appeals judges
  • Common pleas court judges
  • County court judges
  • County clerk of courts
  • Members of state board of education (some districts)
  • Members of state and county central committees of political parties

Questions about voter registration? Click the following to….

Click here to access MyOhioVote.com, which offers complete details on voting in the 2016 Primary Election.

Tags: politics

Ohio ranks 5th in human trafficking; OAR members provide awareness and housing

hand and heart

By Sheila Crane, HER REALTORS

In 2007, the U.S. Senate designated Jan. 11 as National Human Trafficking Awareness Day to highlight sexual slavery and human trafficking worldwide. Second to drugs, trafficking is the fastest growing criminal activity with an industry estimate of more than $150 billion in revenue. An estimated 1,078 America-born Ohio children will enter into sexual slavery this year, another 3,000 more are at-risk; many children service advocates feel these estimated numbers are low.

Ohio legislators are aggressively working to combat human trafficking, in 2012, Gov. John Kasich formed the Ohio Human Trafficking Task Force; U.S. Senator Rob Portman (R-Ohio), co-chair of the Senate Caucus to End Human Trafficking introduced several bills in 2015 including the Bringing Missing Children Home Act and the Ensuring a Better Response for Victims of Child Sex Trafficking.

Along with Ohio Attorney General Mike DeWine, State Rep. Teresa Fedor (D-Toledo) help create Ohio’s Human Trafficking Commission in August of 2011 and introduced the Safe Harbor bill, which prevents an underage person with being charged with prostitution, the understanding is children cannot give consent. Due to increasing human trafficking awareness, we now understand that many adult prostitutes were sexually victimized and/or sexually trafficked as children. Trafficking involves Force, Fraud and Coercion. Rep. Fedor explains, “Age of consent should never apply. These victims are not consenting. They’re enslaved. They can’t get out. They’re being forced to have sex with 20 or 30 men a night — beaten, drugged, raped, kidnapped. They go from city to city. There’s no consent involved at all.”

Several Ohio REALTORS are spearheading efforts to address trafficking:

Ed Churchill, team leader at The Churchill Team from Alt REALTORS in Columbus volunteers at CATCH Court. CATCH stands for “Changing Actions to Change Habits.” According to Churchill, the break-thru concept recognizes that some women engaged in prostitution are actually victims of human trafficking, the greatest evil of our time. Franklin County Municipal Court Judge Paul Herbert has received national recognition for his efforts in combating the human trafficking ‘cycle’ accepting an award from the U.S. Department of Justice, Judge Herbert is the only judge to ever receive the Award for Professional Innovation in Victim Services.

Lorna Furderer, with HER REALTORS, is involved with (University of Dayton) Abolition Ohio’s Speakers’ Bureau, the human trafficking rescue and restorative effort within the Miami Valley.. Her vision is to create extreme trauma centered therapeutic residential housing facilities.

Additional Ohio REALTORS that are training and equipping themselves to be of service include Christine Pappas, RE/MAX Results Residential Real Estate and the Lake & Geauga Area Association of REALTORS; Linda Shurte, with Irongate REALTORS and the Dayton Area Board of REALTORS; Ruthie McFee Lowrey, a Howard Hanna REALTOR of the Median County Board of REALTORS.

 

Sheila CraneSheila Crane, HER REALTORS and the Dayton Area Board of REALTORS is currently serving as the chair of (University of Dayton) Abolition Ohio’s Speakers’ Bureau; Abolition Ohio is the Human Trafficking Rescue and Restorative effort within the Miami Valley. It was working with Montgomery County’s PIC: Prostitution Intervention Collaborative as a housing consultant that opened her eyes to the horrors of what is happening to our children. The number one need for human trafficking victims/survivors is housing. She recently completed training through the Ohio Attorney General’s Human Trafficking Commission, and will work with the Commission’s Victim Services sub-committee to implement housing services throughout Ohio.

Sheila, a member of the OAR Executive Committee and chair of the Equal Opportunity Diversity Committee, was honored as OAR’s Excellence in Community Service Award recipient in 2014 for her efforts in raising awareness and combating human trafficking in Ohio.

Tags: Association news

Ohio Market Watch: REALTORS’ anticipation of market improving in 2016 slower than last year

By Greg Stitz, OAR Director of Research

According to OAR’s January Ohio REALTOR Confidence Survey findings, 46 percent of respondents anticipate the residential market will increase at a fast or moderate rate, 45 percent believe it will continue at its current rate and 9 percent believe it will slow at a fast or moderate rate. Last January, when the same question was asked, 59 percent of respondents anticipated the market increasing at a fast or moderate rate, 34 percent believed it would continue at its current rate and 7 percent indicated it would slow at a fast or moderate rate.

Market-performance-this-year-Jan_16

Survey results are based on responses to a monthly survey, designed to capture the effects of the existing economic conditions and trends on the real estate industry, sent to a pool of 1,500 OAR participants. Click here to participate in future OAR Housing Confidence Surveys

Tags: Ohio Market Watch, research

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