1% Listing: See Antitrust, Ok to take but do not advertise. We don’t want agents to advertise a number. NOTE: SAVE THOUSANDS…! I would like to see an asterisk added to the "save thousands" line and then have language such as: Real Estate commissions are negotiable and are not established by the brokerage" or something like that. I don't want it to appear that there is some predetermined amount set by HomeSmart. Please add that and resubmit for final approval and you should be good to go.
What is a 1031 exchange? A 1031 exchange is a tax-deferred exchange of “like kind” INVESTMENT property which is held for invest-ment or for productive use in a trade or business. Section 1031 of the Internal Revenue Code provides one of the best tax strategies for defer-ring the capital gain tax that would ordinarily be assessed on the sale of investment property. By utilizing an exchange to defer the capital gain tax, the property owner has substantially more equity to reinvest in a replacement property. Rental or investment property owners can accomplish virtually any investment objective with tax deferred exchanges including:
1) greater leverage, 2) diversification, 3) consolidation, 4) cash flow, 5) management relief, and 6) increased depreciation.
1031 EXCHANGE (Asset Preservation) https://apiexchange.com/what-is-a-1031-exchange/ https://apiexchange.com/45-180-day-exchange-calculator/
Here is a link to a 1031 exchange company that your client can consider. https://apiexchange.com/what-is-a-1031-exchange/ Please direct your specific questions to them, or the exchange company of your choosing, OR the IRS: https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031
On a 1031, in escrow, seller will sign a form called “Assignment Agreement for Replacement Property.” The seller is allowed to sign this.
1031 EXCHANGE: Old Republic Exchange: OldRepublicExchange.com
We only need three things to set up a 1031 exchange: 1) A copy of the purchase and sales contract, 2) Exchanger contact information, 3) Closing attorney or agent contact information.
What Old Republic Exchange Does:
• Act as Qualified Intermediary (QI), as required by U.S. Treasury regulations
• Prepare all documents required for the exchange
• Execute closing documents
• Hold the exchange proceeds to avoid constructive receipt of funds
• Coordinate and consult with closing agents, real estate professionals, and
tax and legal advisors.
1031 EXCHANGE: FIRPTA IN 1031 EXCHANGES, AN ONGOING ISSUE MADE SIMPLE: https://www.ipx1031.com/firptain1031/
1031 EXCHANGE: Restrictions Apply on Tax-Free Deferred Exchange of Homes; By Christopher Combs | March 8, 2020; Q: Can we use a section 1031 tax-free deferred exchange to sell the North Phoenix Rental home and use these $200,000 sale proceeds to build our personal home in Chandler? Answer: First, you can only do a tax-deferred exchange between two investment properties. A personal home is not an investment property. Therefore, if you sell your North Phoenix home and build your personal Chandler home, you will have to pay capital gains tax on the $200,000 sale proceeds of the North Phoenix home. Second, under IRS rules, however, you could eventually get the benefit of a tax-deferred exchange if you use the $200,000 sale proceeds from the North Phoenix home to build the Chandler home, and then rent the Chandler home to a tenant for at least one year. (continued…)
1099-S: Q: A client asked if I will be providing a 1099-S form for the sale of their home in 2018? I've never been asked this before. A: The Internal Revenue Service requires owners of real estate to report their capital gains. In some cases when you sell real estate for a capital gain, you'll receive IRS Form 1099-S. This form itself is sent to property sellers by real estate settlement agents, brokers or lenders involved in real estate transactions. In Arizona, the 1099-S is actually sent by the title company within a couple weeks after closing. You could send a copy of the settlement statement if you have a copy, but the actual 1099-S is sent by the title company that closed the transaction. (Proceeds from real estate transactions are typically reported on Form 1099-S. Form 1099-B is typically used to report sales made by a broker, normally stock sales)
1099, Agent Complaint/Question: Hello YYYY, Looking at the settlement statement we are unable to revise your 1099. HomeSmart reports Gross Commission Earned. This is the amount that will be reported on your Form 1099. (not your net checks)
The HomeSmart Agent first earns the Gross Commission Amount that is reported on the Settlement Statement and then certain amounts are deducted/paid from those Gross Commissions, such as Transaction Fees, E&O and Credits given to the Buyer or Seller.
Therefore, when reporting your Earnings for the year on your Tax Return, you will first report the Gross Commission Amount and then Record the other items paid as expenses or Costs of doing Business.
Please Consult your Tax Accountant on the proper way to report these expenses on your tax return.
Please contact Trudy Moore Designated Broker at 602-889-2110 or email@example.com with any other questions or concerns.
Thank you, Ashley Gomez
ABANDONED PROPERTY, SEE FURNITURE, ABANDONED PROPERTY
ABOVE (OR BEYOND) REPROACH: such that no criticism can be made; perfect. synonyms: perfect, blameless, above suspicion, without fault, faultless, flawless, irreproachable, exemplary, impeccable, immaculate, unblemished, spotless, untarnished, stainless, unsullied, whiter than white; informalsqueaky clean"I never claimed to be above reproach"
ACKNOWLEDGE RECEIPT OF OFFER: OTHER AGENT NON-RESPONSIVE: Q: I realize they did nothing wrong in terms of legally or otherwise but dang isn’t it just good business practice to communicate little better, especially with fellow HomeSmart agents? Dang, isn’t that just good business practice? A: Thanks for the reply X. As you can imagine we have conversations around this issue almost every day, sometimes it's an outside agent, sometimes it's a HomeSmart agent as in your case. We will make a note in the agents file, and if it's an ongoing issue then appropriate action will be taken, and at that point the Designated Broker will be involved. We appreciate your professionalism and holding yourself accountable as you mention in your email. Thanks again, Jeff.
ABSORPTION RATE: The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes. How to calculate:
1. First, determine the number of homes closed in your market over a specific period — say, 12 months. You can get this data from the MLS.
2. Next, divide the number of homes by the number of months in the period — in this case, 12. ...
3. Last, divide the rate into the number of current listings.
ACCEPTED OFFERS MUST Be Disclosed (NOT OPEN OFFERS-UP TO SELLER HOW TO PROCEED) (NAR/ETHICS) http://realtormag.realtor.org/law-and-ethics/ethics/article/2012/09/accepted-offers-must-be-disclosed
ACTIVE KEY: (See CBS Code)
ADA COMPLIANT WEBSITES: email sent to agents: I'm reaching out because we saw an uptick in ADA threats against businesses like yours and decided to put our heads down and come up with a solution. Last year, there were 2,285 ADA website lawsuits filed in federal courts across the nation, an increase of a 181 percent from 2017. Critics call it “legal extortion,” now targeting small business owners who feel they are “sitting ducks” for ADA lawsuits regarding their websites that are not accessible to some with disabilities. NBC News It's now crucial that websites are ADA Compliant. Our Web Accessibility Software adds an accessibility widget on your website that automatically makes your website compliant with the WCAG 2.1 at the AA level, the ADA, Section 508, and the EN 301549. Thomas Brandon, Compliance Manager, wodumedia.com Can you guys take a look and reach back out to our agent, Rosann? She's getting hounded by this company wanting to make her site ADA compliant. Sound like something either of you are familiar with? KF. A: I would simply tell her to ignore these, report them as spam or block. The company just wants to sell her their product. Adam and Ashley are currently working on updating our own HomeSmart website and we actually do have an "accessibility" link at the bottom of our website (our agent can review). If the agent maintains her own website, however, I'm not going to provide her legal advice on whether it's "ADA compliant." I was getting these emails for awhile but now they go to SPAM. In short, if you are reasonably trying to comply with the ADA (we are and will be hiring our own company to ensure compliance), then they can't do much. . . . Susan Watson. 8/19/2019 (Rosann Williams was HomeSmart agent).
ADDENDUM: Don't use an Addendum as a continuation! My concern is that the seller wont sign the addendum, but agreed to all the terms of the Addendum and addressed/acknowledged the Addendum in their BINSR response.
ADDENDUM: Can any party draft an addendum if seller agrees to credit buyer X amount of dollars at COE? Sure, either party can draft an addendum. Typically though, the party who is proposing or asking for something would take the initiative and create the addendum. Either way works.
ADDENDUM, USE TO CHANGE/CLARIFY: “This Addendum is for clarification purposes only: Contrary to page 10 of the Purchase Contract, there was not a Counter-Offer from the Seller.” OR “Line #181 of the Purchase Contract was initialed in error. The parties acknowledge and agree that the Buyers initials on line #182 is the correct choice as the home was built in xxxx.”
ADDENDUM: How to use properly in a contract: https://www.aaronline.com/2015/05/dont-add-confusion-to-an-addendum/
ADDENDUM, UNKNOWN, SEND (ANY) ADDENDUM WITH COUNTER OFFER LANGUAGE “Buyer agrees to execute the attached (BLANK) Addendum simultaneously along with this Counter Offer.” FOR EXAMPLE: “Buyer agrees to execute the attached BACK-UP OFFER Addendum simultaneously along with this Counter Offer.” Q: I just wrote an offer on a property I'm buying myself. The seller signed the contract without a counter but sent an "as is" addendum to be signed with it. Do I need to sign it to have a contract? A: No. If the AS-IS Addendum (or any other addendum) is not referenced in the purchase contract, then it is simply unenforceable. JT
ADDENDUM: “This Addendum #1 Replaces the previous Addendum #1 dated xx/xx/xxxx which was rejected by the buyer and is hereby considered NULL and VOID.” or, write “VOID” on the unused/unsigned Addendum or Counter Offer or write “Addendum1 is unsigned by the seller/buyer as they did not agree to the terms and is hereby considered null and void. OR Addendum #3 replaces addendum #2 which seller would not sign and was not in agreement with.
ADDENDUM: If an addendum is not agreed to, write that “This addendum is hereby considered null and void (or on next addendum or missing pw form).”
ADDENDUM, ADD ADDENDUM: Buyer agrees to execute the attached _______ addendum along with this counteroffer
ADDENDUM: INCLUDE ADDENDUMS WITH LISTING? YES! Q: I’m listing a home with a solar lease. Should I include with this listing the Solar Lease Assumption Addendum dated at the time of the listing or should this be generated later by a buyers’ brokerage? A: Great question Gene! It's always a good idea to get any required addendums ready to go, even when we are the listing agent. This helps us protect the seller and is a really good way to take control and reduce risk in the transaction. You can upload the Solar Addendum to the docs tab in the MLS and then state in private remarks "Please include the solar addendum with your offer." You can upload any other required Addendums at this time as well, if needed (ie, owner/agent, lead based paint, septic, well, additional clause, residential income property, etc). You can fill out the Addendum with the property address, no signatures or dates are required at this time. I really don't care if the buyer submits their own Addendum or the one you uploaded to MLS, the point is we know the Addendum is required and we have it plugged in on our required documents list for this transaction. Hope this helps, please call with any further questions.
ADDENDA: BROKER NOTE REGARDING ADDENDUMS: FYI - please do not list the Agency Disclosure and Election, Affiliated Business Disclosure, Wire Fraud Advisory, SPDS, Market Conditions Advisory or Buyer- Broker Agreement on line 38 of the Purchase Contract as an addendum. These forms are DISCLOSURES and ADVISORIES and are not addenda. If you elect to use these forms, HomeSmart will want copies of these forms uploaded to RSA, but please do NOT list them on line 38. Thank you.
ADDENDUM, Q: REQUIRED IF COE IS RUNNING ONE DAY LATE, NEED ADDENDUM TO EXTEND COE? NO! As long as the lender and title are good, then it isn't a problem for HS either.