Tag Archives: OnlineEd

All About Easements: The Easement in Gross

The easement in gross gives the owner of the easement the right to use real property for a particular purpose

By Jeff Sorg, OnlineEd Blog

(April 9, 2019)

(PORTLAND, Ore.) OnlineEd – The easement in gross gives the owner of the easement the right to use real property for a particular purpose. An easement in gross does not attach to or benefit a parcel of land and is usually created for the benefit of a legal person such as a utility company or railroad. The important characteristic of an easement in gross is that it gives the limited right to use another’s land and it is not created for the benefit of any land owned by the owner of the easement.

The land over which the easement in gross crosses is burdened by the easement and is known as the servient tenement. Since the easement right is personal and does not benefit another parcel of land, there is no dominant tenement.

Most easements in gross are for commercial purposes, are not revocable, (the servient tenement landowner cannot revoke the easement), and can be assigned to another legal entity. Some common examples of easements in gross are sewer lines, gas lines, electric lines, cable lines, etc.

Commercial easements in gross provide for the right to cross a property with the physical cable, pipe, power line or the like, as well as the right to re-enter the property after the initial installation to perform maintenance, repairs, and updates.

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

All About Easements: The Easement Appurtenant

An easement appurtenant gives a property owner a right of usage to portions of an adjoining property

By Jeff Sorg, OnlineEd Blog

(April 5, 2019)

(PORTLAND, Ore.) OnlineEd – An easement appurtenant gives a property owner a right of usage to portions of an adjoining property owned by another party. Stated another way, an easement appurtenant is an easement over one parcel that benefits another parcel of land. The property benefiting from the usage right to travel over the easement is called the dominant tenement, or dominant estate. It is called the dominant estate because it is the parcel of real property that has an easement over another piece of property – it dominates. The property that includes the physical easement, that is, the land over which the dominant tenement can travel, is called the servient tenement since it must serve the dominant estate by providing the easement for its use.

The term appurtenant means “attaching to.” An easement appurtenant, then, attaches to the estate and transfers with it unless expressly stated otherwise. More specifically, the easement attaches as a beneficial interest to the dominant estate, and as an encumbrance to the servient estate. Accordingly, the easement appurtenant becomes part of the dominant estate’s bundle of rights and an obligation or encumbrance of the servient estate.

Transfer. Easement appurtenant rights and obligations automatically transfer with the properties, either the dominant or servient estate, whether or not mentioned in the deed.

Non-exclusive use. Both the servient tenement and dominant tenement can use the easement, provided the servient’s usage does not unreasonably obstruct the dominant’s use.


The exhibit shows a conventional easement appurtenant. The driveway marked A belongs to Parcel #2. An easement appurtenant, marked B on the diagram, allows Parcel #3 to use #2’s driveway. Parcel #3 is the dominant tenement, and Parcel #2 is the servient tenement.

Easement by necessity. An easement by necessity is an easement appurtenant legally granted by a court to a property owner because of necessity. Usually, the necessary condition that precipitates the granting of the easement is the need to provide ingress and egress to a property. Ingress means a way to travel into the property, and egress means a way to travel out of the property. Since a property cannot be landlocked and must have access to a public thoroughfare, the court will grant an owner of a landlocked property an easement by necessity over an adjoining property that already has access to a thoroughfare. When this is the case, the landlocked party becomes the dominant tenement, and the land over which the easement is granted is called the servient tenement. In the exhibit, Parcel #1, which is landlocked, owns an easement by necessity, C, across Parcel #2.

Party wall easement. A party wall is a common wall shared by two separate structures along a property boundary. Party wall agreements generally provide for severalty ownership of half of the wall by each owner, or at least some fraction of the width of the wall. Ownership in severalty means individual ownership; ownership is “severed” from all others. Also, the agreement grants a negative easement appurtenant to each owner against the other owner’s wall. A negative easement gives each party the right to restrain or control the use of the other party’s use in some way, such as unlimited use of the wall or a destructive use that would jeopardize the adjacent property owner’s building. The party wall easement also establishes responsibilities and obligations for the maintenance and repair of the wall.

Other structures that are subject to party agreements are common fences, driveways, and walkways. Common means they are shared between the properties – they are of common or shared ownership and on the property line between the affected properties.

++ Remember: A negative easement appurtenant does not allow the owner of the dominant estate to cross over the servient estate. Instead, the dominant estate has the right to restrict some activity or use of the servient estate.

(Image ©Copyright, OnlineEd, Inc. All Rights Reserved)

 

A negative easement appurtenant does not allow the owner of the dominant estate to cross over the servient estate. Instead, the dominant estate has the right to restrict some activity or use of the servient estate. Example: Developer Jovan purchased a tract of land abutting Oceanfront Lake and divided it into two parcels. Lot A is on the shoreline, and Lot B is farther back from the shore. Lot B has a good view of the lake because it is situated on higher ground that overlooks Lot A, but it is located behind Lot A and could be lost if Lot A builds a two-story house. Because Jovan wants the best price for each parcel, the view of the lake from Lot B is protected by adding a deed restriction in Lot A’s deed to limit any structure built on Lot A to a single story.

In the example above, the owner of Lot B is the owner of a negative easement appurtenant. The dominant estate, Lot B, can prohibit specific activity on Lot A, the servient estate, that could block or restrict the view of the lake. In this situation, Lot B’s owner does not have an affirmative easement appurtenant and cannot cross over the land of Lot A to reach the lake, since only the view is protected. Though not applicable to the above example, it is possible to have both an affirmative and negative easement at the same time. If an easement was created for access to the lake and to limit the height of any structure, then the owner of Lot B would have both negative and affirmative easements.

Easements appurtenant are created in these ways:

By grant or reservation – An easement created by grant or reservation is created by the express written agreement of the landowner. This is most frequently done in the deed but can be done in a separate recorded instrument. When done by grant, the owner of a property gives to someone else the easement right. When done by reservation, the owner of the property retains an easement on land conveyed to another. For example, you sell your property but keep the right to travel over the sold parcel to walk to the ocean.

By intent or necessity – The right to ingress (entry) and egress (exit) is required by law. Any property that is landlocked, meaning it has no ingress and egress, has these rights. A landlocked landowner has a right to an easement to cross the land of another to reach a public right-of-way. This type of easement available to a landlocked owner is called an easement by necessity and is outlined in Oregon Revised Statutes, specifically ORS 376. The servient estate in the easement by necessity may be entitled to compensation for the easement.

By prescription – An easement by prescription is the use of the land of another that meets these requirements;

  • Open and notorious (obvious to anyone);
  • Actual, continuous (uninterrupted for the entire required period);
  • Adverse to the rights of the true property owner;
  • Hostile (in opposition to the claim of another, not “hostile” in the ordinary sense); and
  • Continuous for a statutorily defined period (10 years in Oregon).

An easement by prescription gives the dominant tenant the right of use of the property, not ownership of the property.

By implication – An easement by implication arises out of the conduct of the parties. This means it is an implied easement, not a written easement. An easement by necessity is distinguished from an easement by implication in that the easement by necessity arises only when “strictly” necessary. In contrast, the easement by implication can occur when “reasonably” necessary. For example, the right lot owners have in a subdivision to use a roadway on the approved subdivision plan without requiring a specific grant or easement to each new lot.

By condemnation – The government’s right to use the land of an owner is created by the exercise of the government’s right of eminent domain. Eminent domain includes not only the right of the government to obtain an ownership interest in the property of a private owner; it also provides for the right of the government to create a use easement over the land of a private property owner to benefit the government-owned land. For example, the US Bureau of Land Management uses its power of eminent domain to create an easement of right of way over private property to access government-owned, but landlocked forestland.

Easements appurtenant can be terminated by one of these ways:

  • Release of the easement by the dominant owner
  • Merging the dominant and servient lands into one tract
  • Abandonment of the easement by the dominant owner
  • The reason the easement was created no longer exists
  • Expiration of the time for which the easement was given

©OnlineEd; All rights reserved.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared, or otherwise republished.

OnlineEd® is a registered Trademark

Four Common Listing Agreements Used by Real Estate Agents

Each type of listing agreement allows an agent to market the seller’s property, but they differ when it comes to who else can market it and how the brokerage fee is earned

By Jeff Sorg, OnlineEd Blog

(April 4, 2019)

(PORTLAND, Ore.) OnlineEd – Each type of listing contract allows the real estate agent to market a seller’s property, but the agreements will differ when it comes to who else can market the property or how the brokerage fee is earned. In this post, we discuss the open, exclusive agency, exclusive right to sell, and net listings.

Open – The open listing allows the seller to employ any number of agents at the same time. However, the seller will only owe a commission to the agent who sells the property (the procuring cause of the sale). The open listing agreement also allows the seller to sell the property without owing any commission.

Procuring Cause, as defined by the National Association of REALTORS®, is “the uninterrupted series of causal events that leads to a successful transaction.” It is the way to determine disputes about who deserves a real estate commission for causing a sale. 

The open listing agreement is rarely used in residential real estate because there is little motivation for an agent to promote the property; there is no motivation to cooperate with other agents; and the agent is competing directly with the seller to find a buyer.

Exclusive agency – The exclusive agency listing gives one agent the right to sell the property, but no commission is owed if the seller sells the property. The advantage of the exclusive agency listing over the open listing is that competition from other agents for the listing contract is eliminated. However, the listing agent is still competing with the seller when selling the property and is at a disadvantage because the seller can sell the property for less than the broker, and no commission has to be paid to the agent.

Exclusive right to sell – With the exclusive right to sell listing, the seller employs just one agent. The agent earns their commission if the property is sold by another agent, the seller, or the listing agent.

This is the most used type of listing agreement in residential real estate brokerage. Because the listing agent is assured of a commission if the listing sells during the term of the agreement, the agent is likely to spend time, money, and other resources necessary to market the property, thereby resulting in a more timely sale for the seller. With the exclusive right to sell listing, the agent earns the fee when a ready, willing and able buyer is produced who meets the agreed upon terms of sale stated in the listing agreement, whether or not the seller accepts such an offer.

The exclusive right to sell listing agreement also usually contains a due diligence clause. A due diligence clause requires the principal broker to exercise due diligence in attempting to locate a buyer for the property. The agreement will also include a clause that requires the seller to pay the fee if the property is sold to anyone introduced to the property during the listing period, even after the listing has expired. The period for which this fee is due after the listing expires is negotiated with the seller and becomes a part of the contract at the time of the listing agreement. The purpose of the clause is to prevent a buyer who was introduced to the property during the listing period from purchasing the property directly from the seller minus any commission due to the listing agent.

Net – A net listing is a listing agreement that allows the listing agent to keep everything over the minimum (net) price set by the seller, however, there wouldn’t be any fee owed to the agent if the seller sold for the net amount. Some states and many brokerages do not allow the net listing, and its use is discouraged even in states where it is legal because of its potential for misuse.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult an appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Zillow Offers Heads to Portland, OR

Is it time for real estate agents to pay attention and get on board with Zillow Offers?

By Jeff Sorg, OnlineEd Blog

(January 17, 2019)

(PORTLAND, Ore.) OnlineEd® -In 2019, Miami, Minneapolis-Saint Paul, Nashville, Orlando, and Portland will give home sellers the option of requesting a “no-obligation” cash offer from Zillow to buy their homes, according to a recent announcement by Zillow®. It is expected by Zillow that Zillow Offers will be active in all five of these markets 2019; the program is already active in Raleigh, Charlotte, Denver, Phoenix, Atlanta, and Las Vegas markets.

“Since launching Zillow Offers just nine short months ago, we have been continually excited by the strong demand from homeowners throughout the country and are constantly getting asked when Zillow Offers will come to their market,” said Zillow Brand President Jeremy Wacksman. “It’s clear people want a convenient, stress-free way to sell their home, and real estate professionals are eager to work with us to leverage Zillow Offers as a way to build their local businesses. With today’s announcement, we are excited to continue to rapidly scale Zillow Offers throughout the country and we are well on our way to delivering a simple, on-demand real estate experience to consumers in at least 14 markets this year.”

According to the Zillow Offers FAQ Page for Agents, to request a Zillow Offer, a homeowner in a participating metropolitan area submits their address and answers a series of questions about their home. Later, they may receive an offer from Zillow to purchase the home. If the seller chooses Zillow’s offer, they will have the home evaluated, work with a Zillow Premier Agent to close the purchase, make appropriate repairs and updates and then resell the home using a Premier Agent as the listing agent. The seller can accept or decline the offer from Zillow. If they decline Zillow’s offer, Zillow will present the opportunity to connect with a local partner brokerage and agent to sell the home on the open market.

Zillow is free to home buyers and sellers, offers some free services and postings to real estate agents, and offers additional services and charges fees to be a Premier Agent based on zip code, competition, and home prices within those zip codes.  To explore pricing and learn more about how to get started with Premier Agent Advertising, agents can visit the Zillow website and fill out their contact form or call them at 855-657-6611.

Regardless of how agents feel about this type of business model through Zillow, it’s probably time to at least pay attention to it and do some research. A simple search for “Zillow offers” should return enough information to help agents make an informed decision.

Zillow® is a registered Trademark of Zillow, Inc. and can be found on the internet at Zillow.com.

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Zillow® is a registered Trademark of Zillow, Inc. and can be found on the internet at Zillow.com.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

FHA To Require Second Appraisal For Certain Reverse Mortgages

 Where a second appraisal is required, lenders must use the lower value of the two appraisals.

By Jeff Sorg, OnlineEd Blog

(October 2, 2018)

(WASHINGTON) HUD – The Federal Housing Administration (FHA) announced that it will begin requiring lenders originating new Home Equity Conversion Mortgages (HECMs), commonly referred to as reverse mortgages, to provide a second property appraisal under certain circumstances. FHA is instructing lenders to provide a second independent property appraisal in cases where FHA determines there may be inflated property valuations.

FHA’s new requirement takes effect for case numbers assigned on or after October 1, 2018 through September 30, 2019. FHA will periodically review this guidance and, based on the results, may renew these requirements beyond fiscal year 2019. Read FHA’s Mortgagee Letter.

FHA will perform a risk assessment of appraisals submitted for use in new HECM originations. Based on the outcome of that assessment, FHA may require a second appraisal be obtained prior to approving the reverse mortgage for an insurance endorsement. Under the new policy, lenders must not approve or close a HECM before FHA has performed the collateral risk assessment and, if required, a second appraisal is obtained. Where a second appraisal is required by FHA, lenders must use the lower value of the two appraisals.

The appraisal validation policy announced today will further reduce risks to FHA’s Mutual Mortgage Insurance Fund (MMIF) and protect the health of the HECM program. The financial soundness of FHA’s reverse mortgage program is contingent on an accurate determination of a property’s value and condition. The property value is used to determine the amount of equity that is available to the borrower and it is also used by FHA to determine the amount of insurance benefits paid to a mortgagee.

In a 2017 evaluation, the U.S. Department of Housing and Urban Development (HUD) found higher-than-expected losses in the HECM program could be attributed in part to “optimistic estimates of collateral value driven by exaggerated property appraisals when the loan was originated.”

FHA is addressing the accuracy of appraised property values due to continuing volatility in the HECM program. Last year, FHA’s Fiscal Year 2018 Annual Report to Congress found the agency’s reverse mortgage portfolio had a negative capital ratio of 19.84 percent and a negative net worth of $14.5 billion. To begin to address the financial solvency of the program, FHA instituted several reforms to the HECM program to improve its financial health and to ensure reverse mortgages remain a resource to allow senior borrowers to remain in their homes and age in place. FHA is continuing to analyze the impact of these reforms and expects to provide an assessment in its Annual Report on the financial status of the MMIF.

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

National Housing Market Experiencing More Price Cuts

Home value growth is slowing in almost half of the 35 largest U.S. metros

By Jeff Sorg, OnlineEd Blog

(August 16, 2018)

(SEATTLE) Zillow®/PRNewswire – The share of home listings with a price cut is greater now than a year ago in two-thirds of the nation’s largest housing markets, according to a new Zillow® analysis. The share of listings with a price cut increased the most in markets along with West Coast, with the median amount of the price cut remaining steady across the U.S. for the past several years, at about 3 percent.

In San Diego, 20 percent of all listings had a price cut in June 2018, up from 12 percent a year ago. In Seattle, still one of the nation’s fastest appreciating housing markets despite a recent slowdown, 12 percent of all listings had a price cut in June, the greatest share since October 2014. Portland, Sacramento, Calif. and Riverside, Calif. also experienced an increase in the share of listings with a price cut compared to a year ago.

The share of listings with a price cut is on the rise across the U.S., as well. About 14 percent of all listings had a price cut in June, up from a recent low of 11.7 percent at the end of 2016. Since the beginning of the year, the share of listings with a price cut increased 1.2 percentage points, the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year.

Nationally, price cuts are more common among higher-priced listings. The share of higher-priced listings with a price cut rose 0.9 percentage points since the beginning of the year, to 16.2 percent, while the share of lower-priced listings with a price cut fell 0.1 percentage points, to 11.2 percent. Higher-priced listings have seen a disproportionately large increase in price cuts in 23 of the 35 largest metros since the beginning of the year.

U.S. home values rose 8.3 percent over the past year to a median home value of $217,300. While home value growth isn’t slowing down nationally, it is slowing in some of the nation’s hottest housing markets. In almost half of the 35 largest markets, home value growth is appreciating more slowly now than at the beginning of the year. The median home value in Seattle rose 11.4 percent over the past year, but the annual growth rate was close to 14 percent at the beginning of the year.

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly,” said Zillow senior economist Aaron Terrazas. “A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years. It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”

There are fewer listings with a price cut in some of the nation’s more affordable housing markets. San Antonio, Phoenix, Philadelphia and Houston reported fewer listings with a price cut in June than a year ago. In San Antonio, where the median home value is $185,000, 17.8 percent of all listings had a price cut in June, down from about 20 percent of listings a year ago.

Zillow forecasts home value growth across the U.S. to slow to a 6.6 percent annual appreciation rate over the next year. Among the 35 largest metros, home value growth in San Jose, Calif., Indianapolis and Charlotte, N.C. are forecasted to slow the most.

Metropolitan Area Share of
Listings with a
Price Cut –
January 2018
Share of
Listings
with a Price
Cut  – June
2018
Share of
Listings
with a
Price Cut –
June 2017
Median
Percent of
Price
Reduction
– June
2018
YoY
Home
Value
Growth –
January
2018
YoY
Home
Value
Growth
– June
2018
Home
Value
Growth
Forecast
Over the
Next Year
United States 13.0% 14.2% 13.4% 2.9% 7.7% 8.3% 6.6%
New York, NY 12.0% 13.3% 11.2% 3.6% 7.6% 6.7% 6.8%
Los Angeles-Long

Beach-Anaheim, CA

11.1% 14.1% 11.5% 2.6% 7.7% 7.6% 12.1%
Chicago, IL 15.9% 19.4% 16.5% 2.7% 5.9% 5.8% 7.1%
Dallas-Fort Worth,
TX
15.1% 18.8% 15.3% 2.3% 11.0% 11.6% 7.8%
Philadelphia, PA 17.2% 16.2% 17.9% 3.1% 7.3% 5.9% 6.6%
Houston, TX 16.3% 17.9% 19.0% 2.6% 4.1% 5.8% 1.5%
Washington, DC 13.9% 15.4% 16.0% 2.5% 3.9% 4.2% 3.8%
Miami-Fort

Lauderdale, FL

13.7% 14.9% 13.4% 2.9% 7.2% 7.7% 5.4%
Atlanta, GA 11.0% 13.9% 13.2% 2.4% 8.9% 11.6% 6.9%
Boston, MA 11.7% 13.3% 11.6% 3.0% 7.3% 7.2% 8.1%
San Francisco, CA 6.5% 7.7% 7.6% 4.2% 9.3% 11.0% 7.5%
Detroit, MI 13.9% 16.2% 15.1% 3.5% 9.4% 9.7% 9.0%
Riverside, CA 12.4% 16.4% 11.9% 2.2% 8.3% 7.4% 1.7%
Phoenix, AZ 17.3% 17.8% 19.9% 1.6% 7.6% 8.0% 3.7%
Seattle, WA 6.9% 12.0% 6.9% 3.1% 13.6% 11.4% 7.1%
Minneapolis-St Paul,

MN

11.3% 13.6% 13.7% 2.9% 7.7% 7.6% 6.1%
San Diego, CA 12.3% 20.0% 12.0% 2.3% 7.9% 6.6% 4.7%
St. Louis, MO 15.3% 15.3% 14.5% 3.1% 5.7% 5.5% 4.9%
Tampa, FL 18.6% 22.2% 20.2% 2.4% 10.8% 10.9% 7.5%
Baltimore, MD 16.3% 18.2% 18.7% 2.8% 3.6% 5.0% 4.8%
Denver, CO 10.9% 15.1% 15.2% 2.2% 7.7% 7.4% 5.1%
Pittsburgh, PA 15.2% 14.7% 15.4% 3.7% 6.6% 7.9% 4.6%
Portland, OR 12.8% 17.4% 12.7% 2.6% 5.7% 5.9% 2.7%
Charlotte, NC 11.9% 15.4% 11.2% 2.4% 9.7% 11.0% 3.3%
Sacramento, CA 12.3% 16.7% 12.2% 2.4% 8.7% 6.4% 4.9%
San Antonio, TX 18.4% 17.8% 20.2% 2.1% 6.5% 5.6% 2.7%
Orlando, FL 14.8% 19.2% 18.8% 2.3% 10.0% 9.7% 6.5%
Cincinnati, OH

(Source: Zillow Press Release)

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Zillow is a registered trademark of Zillow, Inc.

OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Oregon House Bill 2737 – The “Tiny House Bill”

Micro-houses have difficulty meeting residential building codes but this bill aims to solve this problem

By Jeff Sorg, OnlineEd Blog

(January 19, 2018)

(PORTLAND, OR – OnlineEd) 

Video transcript:

Perhaps one of the more interesting bills submitted and passed by the Oregon Legislature in its 2017 session is House Bill 2737, known as the Tiny House Bill.

The demand for tiny houses or micro-houses is driven by a number of factors, including the cost of building materials, efforts to reduce the use of energy and natural resources, housing density goals and homelessness. The micro-houses have difficulty meeting residential building codes as these codes were developed for traditional housing forms. The International Code Council, or ICC, has approved new micro-housing standards for inclusion in the 2018 ICC code update. The Building Codes Division of the Department of Consumer and Business Services typically has a lag of one-to-three years before adjusting its codes to reflect ICC changes.

ICC code changes are not necessarily adopted automatically into the Oregon building codes, so what House Bill 2737 does is to require the Director of the Department of Consumer and Business Services to adopt the amendments to the specialty building codes to establish construction standards for homes that are 600 square feet or less. The code addresses such issues as ceiling height, lofts, ladders, and egress.

The codes relating to micro-houses are effective as of January 1, 2018. Click here to sign up for your free 3-hour required Law and Rule Required Course, LARRC.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Presenting Multiple Offers – Part 3 of 3 (video)

Presenting Multiple Offers, Part 3 of  3 parts

By Jeff Sorg, OnlineEd Blog

(January 11, 2018)

(PORTLAND-OR) Presenting multiple offers can get complicated and have unexpected results. Watch my three-part video, Presenting Multiple Offers.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Video New Year Message from OnlineEd

Happy New message from OnlineEd

By Jeff Sorg, OnlineEd Blog

(January 2, 2018)

(PORTLAND, OR) – Here’s to yesterday’s achievements and tomorrow’s brighter future. Happy New Year from all of us at OnlineEd®!

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Continuing Education for Oregon Real Estate License Renewal

How to renew an Oregon estate broker, principal broker, or property manager license with the Oregon Real Estate Agency

By Jeff Sorg, OnlineEd Blog

(December 29, 2017)

 

cropped-Logo_O_512_512.jpg  (PORTLAND-OR) OnlineEd – To renew an Oregon real estate license (broker, principal broker, or property manager) the licensee must pay a renewal fee and meet continuing education requirements.

Continuing Education Requirements

  • 30 hours of continuing education are required during the two years preceding license renewal;
  • At least 3 of the 30 hours must be in a course on recent changes in real estate rule and law, called the Law and Rule Required Course (LARRC);
  • A licensee renewing a license for the first time must take a Real Estate Board-approved 27-hour course on Broker Advanced Practices and a 3-hour course on recent changes in real estate rule and law (LARRC);
  • Continuing education courses, along with course objectives, must come from the Real Estate Board approved topics;
  • Continuing education must be provided by an Oregon Real Estate Agency approved Certified Continuing Education Provider to be eligible. OnlineEd is Certified Education Provider 1038;
  • The Certified Continuing Education Provider must ensure that persons who teach continuing education courses meet certain instructor qualification requirements; and
  • As part of the license renewal process, licensees will self-certify that they have met the continuing education requirement for the applicable renewal cycle.
  • While courses might be delivered by approved providers, it is still the licensee’s responsibility to see that the courses meet timing requirements and that the provider can prove the licensee’s time in the course to the Agency. This means that online courses must have timers and live lecture courses must have a method in place to verify time spent in attendance. A provider’s certificate of completion issued when the provider cannot prove time spent in the course will not be counted if discovered during an agency audit.

Eligible Course Topics

At least 3 of the 30 hours must be from a course on recent changes in real estate rule. The course on the recent rule and law changes is known as Law and Rule Required Course, commonly known by its acronym LARRC (“lark”). The remaining 27 hours of continuing education can come from any of these topics:

  • Principal broker or property manager record keeping
  • Principal real estate broker supervision responsibilities
  • Principal broker or property manager client trust accounts
  • Agency relationships and responsibilities for brokers, principal brokers, or property managers
  • Misrepresentation in real estate transactions
  • Property management
  • Advertising regulations
  • Real estate disclosure requirements
  • Real estate consumer protection
  • Anti-trust issues in real estate transactions
  • Commercial real estate
  • Real estate contracts
  • Real estate taxation
  • Real estate property evaluation, appraisal, or valuation
  • Fair Housing laws or policy
  • Managing a real estate brokerage
  • Business ethics
  • Risk management
  • Dispute resolution
  • Real estate finance
  • Real estate title
  • Real estate escrows
  • Real estate development
  • Condominiums
  • Subdivisions
  • Unit owner or homeowner associations
  • Timeshares
  • Water rights
  • Environmental protection issues in real estate
  • Land use planning, zoning, or other public limitations on use
  • Real estate economics
  • Real estate law or regulation
  • Negotiation

Specifically excluded from eligible continuing education are courses about these topics:

  • Real estate broker or property manager pre-licensing courses
  • Examination preparation classes
  • Sales meetings
  • Motivational classes or seminars
  • Time management classes or seminars
  • Sales and marketing classes or seminars
  • Psychology classes or seminars
  • Trade association orientation courses
  • Courses in standardized computer software programs not specifically related to one of the eligible topics
  • Courses with content that is specific to another state or jurisdiction

Certified Continuing Education Providers

For continuing education to qualify for license renewal, the education must be delivered by a Certified Continuing Education Provider. To qualify as a Certified Continuing Education Provider, the applicant must be one of the following:

  • An Oregon Real Estate Agency registered business name. Eligible applicants are a principal real estate broker or real estate property manager who conducts business under a registered business name.

A real estate trade association or a trade association in a related field but not the individual members of those associations. A “real estate trade association” is defined as a local, state, regional, or national organization with members that include real estate licensees.

A “trade association in a related field” means a local, state, regional, or national organization with members including, but not limited to, a certified or registered:

  • Private career school approved by the REA. A private career school means a school licensed by the Oregon Higher Education Coordinating Commission and approved by the REA to provide the 150-hour real estate license applicant course of study, the 60-hour property manager license applicant course, or both.
  • Distance-learning provider approved by the REA, which means a person whose course has been certified by the Association of Real Estate License Law Officials (ARELLO).
  • Appraisers, architects, attorneys, contractors, professional engineers, and tax professionals

A provider who does not meet one of the listed qualifications to become a certified continuing education provider may petition the Real Estate Board for approval. Once approved as a certified continuing education provider, the provider must:

  • ensure that a course offered is within the scope of one or more of the eligible course topics;
  • identify to the licensee which course topic the course covers;
  • ensure that the course meets the minimum length requirement of one credit hour (50 minutes);
  • assign each course a four-digit number that is unique to that course;
  • ensure that courses offered will meet the stated learning objective requirements;
  • ensure that the instructor who teaches a continuing education course meets the applicable instructor qualification requirements;
  • give each licensee who completes a course a course completion certificate; and
  • keep records of each course provided for three years.

Online License Renewal

Once the continuing education requirement is met and to renew a real estate license, licensees are required to use the REA’s online renewal system known as e-License. Real estate licenses cannot be renewed through the US mail.

During the online renewal, licensees are asked to certify that they have completed their required continuing education requirements. As part of their certification process, licensees will submit the information necessary to complete their renewal that is found on each certificate. Additionally, certificates must be kept by the licensee for three years after the renewal date for which the certificate was used for continuing education credit.

The REA’s eLicensing website is: https://orea.elicense.irondata.com

The REA required information to be included on all qualifying continuing education course certificates includes:

  • the licensee’s name and license number;
  • the REA certified course provider’s name and REA provider number;
  • the course name and identification number. This course identification number is a four-digit provider number assigned by REA, followed by the 4-digit course number assigned by the provider and registered with the REA;
  • the date, location, and length of time assigned to the course;
  • the eligible course topics covered, or whether the course is the three-hour Law and Rule Required Course, the Property Manager or Broker Advanced Practices Course, or the Brokerage Administration and Sales Supervision course; and
  • the name of the instructor.

Click here visit a list of approved continuing education courses.

Click here to enroll in the FREE 3-hour approved Law and Rule Required Course, LARRC.

OnlineEd® is an Oregon Real Estate Agency Certified Continuing Education Course Provider No. 1038.

 

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark