Nar Legal Pulse

23 Νοεμβρίου 2022 Χωρίς κατηγορία

This edition of the quarterly report analyzes legal trends in the areas of risk management affecting real estate professionals: agency, disclosure of property condition, RESPA and employment. Background: Legal Pulse is a quarterly report that examines legal issues affecting real estate professionals and reviews various sources such as case law, jury verdicts and relevant legislation. In addition to the research component, each issue analyzes trends that are useful in training sales representatives. The Legal Pulse can be downloaded at Read a summary of this quarter`s additions to the state law-based changes. In addition to the quarterly report, we will now publish a 1-page quarterly summary covering highlights from each issue. The summary can be found on the Legal Pulse page on and is a great way to quickly find cases or new laws that might be of interest. The Legal Pulse is a quarterly report that examines disputes, laws and regulations affecting real estate professionals on a variety of topics. Each issue deals with the agency, disclosure of ownership conditions and RESPA, and each quarter looks at different topics each year – this quarter covers employment-related issues. There is also a summary that gives a one-sided overview of this quarter`s research.

The Legal Pulse and summary can be downloaded at Finley Maxon, Senior Counsel for the NAR, discusses the Legal Pulse newsletter for the second quarter of 2014. This video covers highlights from the newsletter, including cases and statutes related to the agency, RESPA, disclosure of ownership conditions, and ethical issues. The investigation revealed three cases in which the classification of real estate sellers was questioned. The real estate industry is in a unique situation with worker classification, as many sellers are classified as independent contractors, but real estate licensing laws require brokers to supervise sellers. Many states have addressed this apparent discrepancy by exempting real estate licensees from certain laws or by allowing brokers to classify sellers as independent contractors. If not provided for by law, the court will conduct a substantive review of the relationship, focusing on the extent of the principal`s control over the individual to determine whether there is an employment relationship or an independent contractor relationship. Now let`s look at some cases from the 4th trimester. A Texas broker was not responsible for the actions of a saleswoman involved in an accident when she collided with a motorcycle while driving her car, causing serious injury to the motorcyclist. The broker argued that the seller was an independent contractor and that, therefore, the brokerage firm was not responsible for his actions.

The motorcyclist argued that she was involved in mediation activities at the time of the accident, so the brokerage firm was held liable for the injuries. Finally, the report on 4. Quarter also fair housing information of the year 2018. Alabama has enacted a law that allows a landlord who receives a request for housing for a service animal and the applicant`s disability is not obvious to require the applicant to provide “adequate” documentation about the disability. There are also penalties for submitting false information in support of the application. In Rogers v. Wright, a Wyoming court dismissed a lawsuit filed against a seller for alleged misrepresentation when the buyer discovered cracks in the foundation after the purchase. The buyer`s claims were based on statements made by the licensee, and the buyer asserted that the seller was responsible for those statements. However, the licensee acted only as an intermediary and did not represent any of the parties.

This fact was noted in the sales contract, and there was no evidence that the real estate professional had breached any obligations in the context of his intermediary activity. The judgment in favour of the seller was upheld. After her offer was accepted and she completed the purchase of the property, the buyer found that the property had significant erosion issues and that there were signs of the problem on the property. The vendors had reported water intrusion problems, but the buyer testified that she had never read the information materials. The buyer filed a lawsuit, claiming that the real estate professional had fraudulently concealed the erosion problems. The court ruled in favour of mediation. The broker had no fiduciary duty to the buyer, but only the obligation to perform departmental duties such as forwarding documents and ordering inspections, and the broker competently performed these functions. There is also no evidence that the trading broker attempted to cover up the erosion problems. The Court of Appeal upheld the trial judgment. Finally, the Idaho Supreme Court considered the allegations against a vendor and his son and daughter-in-law. The son and daughter-in-law had helped the seller fill out some of the disclosure forms used in the transaction, but had moved during the transaction.

At the end of the purchase, the buyer discovered that the property`s sprinkler system was connected to a water source that he was not authorized to use. The buyer claimed that the seller`s son and daughter-in-law had an agency relationship with the seller and that the seller was therefore liable for any misrepresentations they allegedly made. The court investigated the relationship between the parties and did not find an agency relationship because the seller did not control the actions of the son and daughter-in-law. Thus, the court upheld the judgment. In the second case, the court found that a seller of a real estate brokerage that provided services for the sale and rental of apartment buildings qualified as an employee for unemployment compensation services. Factors supporting the outcome include: the broker set the seller`s rate of remuneration; the broker has established the seller`s work schedule; And the seller received criticism about his presentation style from the broker. In doing so, the court upheld the award made by the chamber to the seller. Two of these cases were appealed by the New York Unemployment Insurance Appeals Board. The first case involved an office rental broker who had received unemployment benefits. The broker appealed, arguing that the seller was an independent contractor. The court rejected the broker`s argument and upheld the granting of unemployment benefits. The court found that the factual records supported the commission`s decision and that the broker exercised full control over the seller and the oversight required by the state licensing law.

Factors in favour of establishing an employee-employer relationship included: an extensive paid training program; The provision of office equipment and supplies to vendors required employees to be in the office at a certain time; prohibit sellers from providing services outside the broker; and starting a business. Welcome to a special edition of the Legal Pulse Risk Management Report. I am Finley Maxson, Senior Counsel for the NAR. In this issue, we will review the 2018 results as well as some interesting cases from Q4. More information on current legal disputes for real estate professionals can be found in the Legal Pulse at Thank you very much. This concludes the report on the first quarter of 2016. Please check back in August to receive the second quarter report. Thank you very much. In another case, an Ohio appeals court upheld a lower court`s ruling that real estate professionals were not required to warn a visitor to the property of the danger of entering a utility cabinet. During the inspection of the property, one of the potential buyers had missed a step when entering the closet and caused him injuries.

The court noted that there was no evidence that the real estate professionals were aware of an alleged danger coming from the supply cabinet and were therefore not obliged to warn potential buyers. Therefore, the court upheld the lower court`s judgments. The court found that the evidence showed that the seller was an independent contractor.

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