Real Estate School P R E S E N T S Minimize Your Risk Maximize Your Earnings Understanding the Top 10 Property Conditions* that most often lead to disputes *According to the 2009 NAR Legal Scan

What is the 2009 NAR Legal Scan?  Published every two years by National Association of Realtors  Survey of 1197 selected “Key Contacts” in real estate industry  Agents, Brokers, Members of NAR Risk Management Committee and Professional Standards Committee, Real Estate Attorneys and Educators

What is the 2009 NAR Legal Scan?  Asks “What issues are the basis for current “disputes” in real estate transactions?”  “What issues will increase/decrease over next two years?”  Disputes are defined as litigation, complaints, arbitration, mediation  Asks “ Is there is a need for training?”

Full report available National Association of Realtors site 162 page pdf To access - “2009 Legal Scan” in search bar

Property Condition Disclosure PCD is/will be an ongoing source of disputes Ranked as one of top three issues Disputes are likely to increase over next two years Significant need for training

Property Disclosure Condition “One theme running through the respondents’ comments is that, with banks owning properties being offered for sale, licensees do not really know what the problems are, which may result in disappointed buyers and increased disputes.”

Lovely House

Nice Landscaping Job

Manicured plantings kept away from foundation

Do You See the Problem?

Interior View

Termites, Mold, Extensive Damage

Top 10 Property Conditions Mold/Water Intrusion Structural Defects Sewer/Septic Insects/Vermin Plumbing Roof Environmental Issues – Radon, Asbestos, Lead, UST HVAC Electrical Flooring/Walls

Mold/Water Intrusion

Structural Defects

Septic/Sewer

Insects/Vermin

Plumbing

Roof

Environmental Issues HVAC Radon Asbestos Lead Underground Storage Tanks

Electrical

Walls/Floors

Additional areas of concern…. beyond the home inspection “As Is” transactions Misstatement of square footage Valuation Imported drywall Boundaries Zoning Off-Site Adverse Conditions Stigmatized Property

Why is this information important? Happy, well informed clients, mean more referrals (and no disputes) More referrals = more earnings Minimize your risk by having a greater awareness and understanding of adverse conditions

FACT: 56% 56% of Buyers rely upon their Agent to point out unnoticed features/faults with the property This ranks as the #2 benefit that Buyers want from their agents #1 benefit is to help buyer understand the process Source: NAR 2009 Profile of Buyers and Sellers

Thank you! For more comprehensive information please look for our 2011 Continuing Education Course “Minimize Your Risk – Maximize Your Earnings” Understanding the Top 10 Property Conditions that most often lead to Disputes Real Estate School