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Legal Update Presentations & Supporting Materials
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Albuquerque: 505-821-1583
Hours: Monday–Friday, 9 AM to 5 PM (excluding holidays)
The Voice | Legal Update Articles
The New ORR Process – A Warranted Change (The Voice – 3rd Quarter, 2022)
Copyright Infringement Claims on the Rise (The Voice – 2nd Quarter, 2022)
What Exactly Does “As-Is” Mean? (The Voice – 1st Quarter, 2022)
Form 2104’s 2-Day Notice to Cure Provision – Breaking it Down (The Voice – 4th Quarter, 2021)
Setting Expectations Mitigates Buyer/Seller Discord (The Voice – 3rd Quarter 2021)
2023
Legal Update - 02/15/23
Details
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NMAR Forms – 1:03
Adverse Material Facts – Form 1110 – 1:06
Per NMAR Purchase Agreements, Seller is required to disclose all Adverse Material Facts relating to the Property about which Seller has actual knowledge, including defects which the Buyer could determine through their own due diligence. Failure to comply with this requirement could expose Seller to claims of breach of contract, misrepresentation and/or fraud.
Important Definitions – 3:26
Important Instructions – 5:22
Adverse Material Fact Disclosure – Form 2110 – 9:44
Best Practices – 12:16
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Manufactured Home/ Modular Home Info Sheet – 15:48
Manufactured Hosing and Zoning Act – 18:11
REALTORS Selling Manufactured Homes – 23:19 | 27:34
Manufactured Housing Brokers Act – 26:37
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E & O Insurance & Manufactured Homes – 31:07
What does 2104 say about inspection reports? – 31:36
Broker Duties – Duty to disclose adverse material facts – 35:09
Waiver of the inspection contingency – 45:36
Form 2104 will be amended to provide that if the buyer or the buyer’s broker sends the report to the seller without the seller requesting the report, it will constitute a WAIVER of the buyer’s inspection contingency.
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Emerging Issues – 51:44
Marijuana – 51:49
Hidden Cameras – 52:48
Animals – 55:05
Teams – 56:41
Enhancing MLS Phots – 1:00:29
Broker Commissions – 1:01:58
How to talk about compensation with clients? – 1:03:21
Increased E and O Limits – 1:06:17
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Case Law Update – 1:06:57
Background on compensation lawsuits – 1:06:59
Sitzer lawsuit – 1:09:07
Moehrl Lawsuit – 1:10:31
Other Lawsuits – 1:12:04
NAR, Zillow & REX Lawsuit – 1:13:23
TCPA – 1:14:27
Copy copyright infringement – 1:15:14
Slip & Fall Property – 1:20:15
In conclusion – 1:22:56
Takeaways – 1:23:10
Young v. Rose – Arizona – 1:24:38
NM 47-I-45. Real Estate brokerage agreements required to be in writing – 1:26:58
Uniform Electronic Transactions Act – 1:27:19
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Q/A 1:28:07
2022 – 2021
Updated Forms
- Form 2104 – Purchase Agreement-Residential Resale (2022 SEPT).v2 – Revised
- Form 5140 – Inspection and Observation Waiver Addendum (2022 Aug)– NEW
- Form 5141 – Notice of Objection (2022 Aug) – NEW
- Form 5142 – Response to Notice of Objection (2022 Aug) – NEW
- Form 5143 – Resolution Addendum (2022 Aug)– NEW
- Form 5144 – Notice of Buyer’s Withdrawal of Objections (2022 OCT) – NEW
- 2200 – Exhibit (2022 AUG).v2 – NEW
Grid Detailing Changes to Purchase Agreement - Residential Resale
Disclaimer:
These new forms will REPLACE the ORW Form (Form 5109).
- The current NMAR Form #2104 – Purchase Agreement – Residential Resale (2022 FEB) will be replaced with NMAR Form #2104 – Purchase Agreement – Residential Resale (2022 SEPT)
- The Purchase Agreement – Residential Resale (2022 SEPT) will no longer reference the Objection, Resolution, and Waiver to Purchase Agreement (NMAR Form #5109 – ORW).
- NMAR Form #5109 – ORW has been replaced with the Objection, Response & Resolution (ORR) forms.
- New Objection, Response & Resolution Forms are as follows:
- Form #5140 – Inspection & Observation Waiver Addendum
- Form #5141 – Notice of Objection
- Form #5102 – Response to Notice of Objection
- Form #5143 – Resolution Addendum
- Form #5144 – Notice of Buyer’s Withdrawal of Objections
Form 2114 – Appraisal Contingency Waiver Addendum Video
Form 2114 – Appraisal Contingency Waiver Addendum PDF (Updated April 2022)
Introduction – 0:24
Appraisal Contingency Waiver Addendum – 1:38
Option A – 4:15 – Buyer fully waives the appraisal contingency
Top of Second Page (Options B – E) – 7:30
Option B – 9:45 – Buyer shall pay a certain amount over the appraisal up to a “Buyer’s Cap.”
Option C – 13:00 – Buyer shall pay the GREATER of two amounts
Option D – 14:14 – If the property appraises at or ABOVE a certain amount, the buyer shall pay the LESSER of two numbers. – If the property appraises BELOW a certain amount, the buyer shall pay the GREATER of two numbers.
Option D – Example – 18:24
Option E – 22:30 – If the property appraises at or ABOVE a certain amount, buyer pays “LESSER of two numbers.” – if the property appraises BELOW a certain amount, buyer has the option of buying at a certain amount, but if buyer opts not to buy for that certain amount, then the parties may renegotiate a purchase price.
Option E – Example – 28:08
Sellers Floor – 31:16
Cash Funds at Closing – 34:29
Form 2111 – Escalation Clause Addendum PDF (2022 APR)
Form 2101 – Price Modification and Seller Credits Amendment PDF (2022 MAR)
NMAR 2022 Winter Legal Update 3.17 Video 1 – MLS Rules
Topics – 2:50
New MLS Rules – 3:34
Policy Statement 8.6: One Data Source – 3:40
– Requires MLSs to offer their participants a single data feed in accordance with the participants’ licensed authorized uses. Policy Statement 8.7: – 4:14
Brokerage Back Office Feed
– Entitles MLS participants to use, and requires MLSs to provide participants, a brokerage back-office data feed. Internet Data Exchange (IDX) Attribution – 4:40
– Require that participants’ IDX displays must identify the listing firm and an email or phone number provided by the listing participant in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display listing. Display of listing broker offer of compensation – 5:08
– Requires MLSs to include the listing broker’s offer of compensation for each active listing displayed on its consumer-facing websites and in MLS data feeds provided to participants and subscribers.
MLS Policy Statement 8.4: – 6:24
Services advertised as “free” – Prohibits MLS participants and subscribers from representing that their brokerage services to a buyer client or customer are FREE or available at NO COST to their clients, unless the participant or subscriber will receive no financial compensation from any source for those services.
MLS Policy Statement 8.5: – 7:00
Non-filtering listings based on offers of compensation or name of the brokerage or agent. Prohibits: – Participants/subscribers from filtering out or restricting listings, in listing information that’s searchable and displayed to consumers, based on the level of compensation offered to the coop broker or the name of the brokerage or agent.
Voluntary Best Practices for MLSs – 7:43
NMAR 2022 Winter Legal Update 3.17 Video 2 – E & O Policy and Claims
E & O Policy & Claims – 0:13
What is a claims-made-and-reported policy? – 1:43
What kinds of claims are not covered? – 2:18
Who is covered?– 3:51
Domicile – 5:33
Do I Coverage for Prior Acts – 5:54
Example: Ramifications of Failure to Timely Renew Coverage – 7:03, 8:54, 10:14 & 10:28
Summary of Sally’s Coverage Dates – 8:19 & 9:54
10 Most Common Claims – 11:04
1. Fraud – 11:23
– Example of Fraud – 12:49
– Damages from Fraud – 13:32
2. Breach of Duty – 14:42
– Example of Breach of Duty – 16:26
3. Breach of Contract – 18:47
4. Negligence – 20:14
– Example of Negligence – 22:33
5. Bodily Injury / Property Damage – 24:23
6. Consumer Protection Act – 26:22
7. Earnest / Escrow Money Dispute – 27:42
8. Misrepresentation – 29:30
– Example of Misrepresentation – 29:58
Avoiding a Claim – 31:23
How do I avoid a claim? – 31:34
Don’t admit liability – 34:56
I’ve just received a claim – what do I do now? – 36:43
“Claims Made & Reported Policies” – 38:17
Claim Study – 38:55 Takeaways – 42:52
Claim Study – Drainage Issue – 43:55
Claim Study – Failure to Submit Offer – 46:06
11 Steps to Stay Out of Court – 47:54
1. Document Your File – 48:01
2. Know Your Limitations – 49:55
3. Do Not Misrepresent – 50:19
4. Use Care in Recommending Inspectors – 50:35
5. Watch Your Broker Duties and if applicable, your Fiduciary Duties – 57:10
6. Observe & Document – 57:29
7. Employ Risk Management Techniques – 58:11
8. Avoid Multiple Contracts – 59:30
9. Do NOT Act as a Lawyer – 1:04:37
10. Stick to What You Know – 1:05:34 1
11. Use Standard Forms & Procedures – 1:06:44
NMAR 2022 Winter Legal Update 3.17 Video 3 – NMREC Rule Changes
NMREC Rule Changes – 0:16
Definition of Property Management in Rules – 0:24
Definition in Real Estate Brokers Act – 2:39
Expedited licensure for military service members, spouses, children, & veterans – 3:08
Expedited Licensure – 3:34
License Renewal Requirements – 3:54
Felony Criminal Convicts – 4:10
Felony Criminal Convictions – 5:22
NMAR 2022 Winter Legal Update 3.17 Video 4 – Fannie Mae ANSI Standards
Fannie Mae Adopts ANSI Measurement Standards – 0:25
Ways to measure square footage – 1:11
– currently no standard is required Appraisers will be required to use the Square Footage
Method for Calculating: ANSI – 2:01
– Effective as of April 1st, 2022 Why the change? – 2:40
How well do you know ANSI? – 3:11
ANSI Basics:
Finished Rooms – 3:53
Treated Concrete – 4:58
Ceilings – 5:17
Garages and other areas – 7:53
Access – 8:22
What if comparable sales are measured differently? – 6:10
Is there an exception process? – 7:14
What’s Next? – 9:32
Home Measurement Specialists – 10:20
NMAR 2022 Winter Legal Update 3.17 Video 5 – Condos
Condo Financing – 0:08
Feb. 28th, 2022 Freddie Mac and Fannie announced new, temporary project/community requirements forloans on condos it buys/finances from lenders Surfside Building Collapse – June, 2021 – 0:30
– Cause of Collapse – 0:35
Condo Financing Requirement – 1:11
– The requirements are intended to guarantee the SAFETY of projects/buildings and avoid unforeseen assessments. Freddie Mac will require lenders to provide documentation to demonstrate that projects are not in critical need of repairs and do not require special assessments.
Special Assessments – 1:51
Reserve Requirements – 2:40
Inspections – 4:53
NMAR 2022 Winter Legal Update 3.17 Video 6 – Seller Financing
Seller Financing – 0:05
Title & Foreclosure – 0:35
What’s the difference between them?
Restrictions – 3:23
Under the Truth in Lending Act Do not apply to…
1 in 12 Exclusion – 4:30
3 in 12 Exclusion – 6:29
Ability to repay Analysis – 7:47
MLO Licensing – 8:04
1 in 12 Exclusion – 8:21
3 in 12 Exclusion – 9:00
Real Estate Addendum –
1. Seller’s Right to Approval – 10:00
2. Buyer is purchasing as – 10:30
3. Price & Payment – 11:23
4. Prior Obligations – 14:51
Important Notice – 16:08
5. Buyer to Maintain Property – 17:50
6. Buyer to Maintain Insurance – 17:55
7. Taxes – 20:24
8. Payment of Insurances & Taxes – 20:34
9. Home Owners/ Condo Association Fees – 21:54
10. Buyers right to sell, assign, convey, or encumber – 22:05
11. Title Insurance or Abstract – 23:00
12. Default – 24:03
13: Country Clerk Filing – 24:57
14. Escrow Agent & Fees – 25:18