Look for the Summer-Fall issue of the Ohio REALTOR magazine to arrive in your mailbox soon. This issue features strategies from OAR’s legal counsel Peg Ritenour on how to keep your buyers calm, cool and collect in the midst of a hot housing marketplace. Additionally, this issue features:
- Shopping offers: is it illegal? Unethical? Or just wrong?;
- A closer look at proposed legislation to address the issue of representing multiple buyers;
- A comprehensive review of what REALTORS need to know about the new Consumer Financial Protection Bureau regulations;
- The 7 deadly sins of real estate;
- Insights from “Coach” Marilou Butcher Roth on how respect within the industry can yield better results;
- A details on the excitement surrounding the upcoming OAR Annual Convention & Expo — with top-notch educational opportunities and more!
By Carl Horst, OAR Director of Publications/Media Relations
The Ohio Association of REALTORS reports the number of single-family homes and condominiums put under agreement in June 2015 reached a best-ever level for the month, increasing 3.6 percent from the pace set during the month a year ago.
The rate of purchase contract signings in June dropped 1.7 percent from the market’s May 2015 index.
Ohio’s June Pending Home Sales Index of 153.6, a forward-looking indicator based on contract signings, increased 3.6 percent from June 2014 (148.3). Activity in June fell 1.7 percent from the level of agreements reached in May 2015 (156.3).
The pending sale index posted during the second quarter 2015 (154.8) reached a best-ever for the three month period (since OAR began collecting data in 2008), increasing 8.1 percent from the level posted in second quarter 2014 (143.2). Activity in the second quarter bests the level posted in first quarter 2015 (138.2) by 12 percent.
“The Ohio housing marketplace is continuing to exhibit tremendous strength, as the number of homes put under contract in June reached an all-time high for the month and marks our 14th consecutive month of year-over-year gains,” said OAR President Greg Hrabcak. “The industry is hopeful that the momentum that’s been established during the second quarter of 2015 will continue as we move forward.”
Compared to 2008, a historically healthy market that marked the end of five consecutive record years for existing home sales and the onset of the recession, June’s Index score of 153.6 marks a 53.6 increase.
A pending sale or a sale “under agreement” is when the buyer and seller agree on terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. Refer to the following page to view the pending home sales index and methods.
OAR, the largest professional trade association in the state with more than 28,000 members, is the only organization that compiles this state wide information from selected Multiple Listing Services each month. The tracking of “pending sales” provides reliable information about where the market is heading in coming months.
By Greg Stitz, OAR Director of Research
10 percent more Ohio REALTORS in 2015 than in 2012 observe their clients finding it easier to secure financing, according to OAR’s latest Housing Confidence Survey. 32 percent of respondents in July 2015 report their clients are finding it easier to secure financing, compared to 22 percent in 2012. Conversely, in July 2012, 30 percent of respondents reported their clients were finding it harder to secure financing, compared to 21 percent in 2015.
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.
Read the Full Decision: Open Container, Ltd. V. CB Richard Ellis, Inc.
An Ohio court has affirmed that a listing broker complied with its statutory obligation to remove a listing once it discovered that its commercial client did not own the listed property or otherwise have authority to sell.
In 1997, Open Container, Ltd. (“Tenant”) entered into a long-term lease for a commercial restaurant space from the Greater Ohio Leasing Corporation (“Landlord”). In 2003, Tenant and Landlord entered into an “Offer to Purchase Real Estate” agreement (“Offer to Purchase”), specifying that Tenant had 45 days to secure financing and purchase the property. If Tenant failed to do so within the allotted time period, the agreement would be null and void. Tenant was unable to secure financing, and the 45 day period lapsed. Nonetheless, two years later, Tenant entered into a listing agreement with CB Richard Ellis (“Broker”) to list the property for sale. Upon Broker’s request that Tenant to show proof of authority to list the property, Tenant proffered the Offer to Purchase.
Two months after Tenant and Broker entered into the listing agreement, Landlord terminated Tenant’s lease of the property due to Tenant’s failure to pay rent. Shortly thereafter, Broker was informed of Tenant’s lack of authority to sell the property. Broker immediately cancelled the listing agreement with Tenant and removed the property listing.
Six months after Landlord terminated the lease with Tenant, Landlord initiated eviction proceedings against Tenant. Tenant filed a counterclaim against Landlord, and also brought claims against Broker, including a claim for breach of the cancelled listing agreement. Tenant claimed that the listing agreement was not only for the sale of the real estate property itself, but also for the sale of the “turnkey restaurant” and its “long term lease,” and that Broker therefore breached its duties to Tenant by cancelling the listing agreement. In addition, according to Tenant, after the Offer to Purchase had lapsed, landlord orally waived the 45-day financing requirement, and that thereafter Tenant and Landlord made a number of oral agreements regarding Tenant’s right to market the property, and an oral “long-term agreement for sale.” Therefore, argued Tenant, Tenant had authority to list the property with Broker.
The lower court rejected all of Tenant’s arguments, and granted summary judgment in favor of Landlord and Broker, affirmed on appeal. In regard to Tenant’s claim that Broker had an “ethical duty” to continue listing for Tenant, the court found that, quite to the contrary, once Broker became aware that Tenant was not authorized to sell the property, “it would need to terminate the contract or face possible disciplinary sanctions.” In addition, held the court, all evidence showed that the listing agreement was not for a “long term lease for a turnkey restaurant” but rather for the real estate property itself.
Finally, held the court, the statute of frauds — a legal doctrine holding that certain agreements be reduced to writing — prevented Tenant’s claims that Landlord had orally waived the 45-day limit on the Offer to Purchase. “Even if,” stated the court, “[Landlord] did in fact waive the financing requirement, such a waiver would still be required to be reduced to writing.”
Open Container, Ltd. V. CB Richard Ellis, Inc., No. 14AP-133, 2015 WL 149960 (Ohio Ct. App. Jan. 13, 2015). [This is a citation to a Westlaw document. Westlaw is a subscription, online legal research service. If an official reporter citation should become available for this case, the citation will be updated to reflect this information].
Source: National Association of REALTORS
By “Coach” Marilou Butcher Roth
In typing this title, I am having the thought that I have typed that same title before. Could be, however, this topic deserves several rounds! Fun — what a word! It brings up all kinds of thoughts, feelings and stories, doesn’t it? Each of us has some sort of belief, or consistent thought, around fun. What is yours?
Children are like sponges and soak up whatever is around them. As children, we absorbed what beliefs our parents and/or significant people in our lives had around fun. So, part of this discussion is identifying our current belief and the other part is determining your own thoughts around the idea of fun.
I, not unlike many others I know, had the belief that fun could not happen until all of my work/chores were done. Fun was presented to me as somewhat of a reward system. Now my realization is that I can have fun with whatever activity I am choosing to engage in. Wow! What a difference. Let’s notice the difference, using writing this blog post as an example. If I were under my old way of thinking, this would feel like drudgery, something to get done and check off of the list. With my new perception of the concept of fun, I find complete enjoyment in the process of writing. This difference evolved from identifying old beliefs and creating new ones.
Awareness is the key to this shift! One way to generate this shift is to notice the thought and/or response that occurs for you when you are presented with something fun to do during work hours. Or, you may want to do a fill in the blank… “Having fun is ________________,” or “I can create fun in my life when ________________.” Even… “My parents had fun when ________________.”
Each of us have our own flavor of fun and beliefs surrounding it. Uncover what belief you are carrying around fun. Is that yours, or have you developed that belief over the years from your observations? What would you like your belief to be? Remember that a belief is merely something you consistently think about, so now it’s up to you! My suggestion would be to do some journaling around this topic and see what comes up. You may generate a statement that identifies what you want fun to be for you. And, as always… have FUN with this exercise!!
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