Articles from Industry Experts
The Three Most Important Things YOU Can Teach Your Brokers
By Jack Jobe
When people first get their Real Estate licensee, they are filled with hope for the future, and fear of the unknown. As their supervising broker, your duty is to help them on their journey. Unfortunately, too many managing brokers focus on the technical aspects of Real Estate and not on the human success tools every broker must bring to their craft. People need a reason to do anything. At its most simple, goals can be reduced to a desire for pleasure OR the fear of pain. How do you help your brokers discover what drives them? Ask questions!
Where are you now?
Help them set realistic objectives. The first two things for you to recognize is a goal is a dream with a deadline, and money is NEVER a goal. (Who really wants pieces of paper with pictures of dead people on them?) The objective is what the money will buy your broker: a new car, house, travel, education for their children, donations to charity and retirement security. Help your broker to uncover their burning desires – press for answers. “Force” them to examine what’s important in their lives. If their child needed an operation, and the only way to get the money was through closing deals, your broker would do what it takes to make that real. The stronger their inspiration, the more perspiration people will exert to reach their goals.
Where are you going?
You also would be wise to help them realize where they are at this moment. A drug addict or an alcoholic can not “get better” until they admit their condition today. That self-examination applies to us all. It’s like reading a map. If someone wishes to reach a goal, they have to be honest about their position on the map. If your broker is really at 1st and Main but they pretend they are at 10th and Elm, when they use their map (goal-setting), he or she will not get where they want to go.
If your broker is talking about massive advertising to get clients and all they can really afford is business cards and word-of-mouth, then teach them how to be the most effective at that.
Along with the map analogy, you should point out that when people are traveling to a destination, most of the time they are traveling in the wrong direction. When I want to get to work (north-west of my house), I actually begin by going south-east, then I turn south until I reach a street where I can travel west, then I go north. That is the way of life. When you realize you are not headed where you want to go, you continue to make course corrections until you reach your goal. All objectives are reached the same way.
If you believe, then you will achieve!
For you to assist your brokers in dealing with the frustrations along the road to success, teach them that Attitude is Everything. No world class runner comes to the starting line saying ‘I’m going to lose.’ If they did, the race would already be over. Each of us must get past the “no you can’ts” of childhood. We bombard children with “No” thinking. As managing brokers, you must preach and teach a positive mental attitude. Support your staff by reinforcing the habits they do well and encouraging them to develop the areas where they are weak. Will they stumble and fall? Of course, that’s how all humans learn to walk – then they can run – and succeed more than they stumble.
No matter how difficult the path, IF you and your brokers keep the right mind-set “I will succeed no matter what gets in my path”, most will reach their present dreams - then you can teach them how to dream extraordinary dreams.
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Fingerprinting – No Time Like the Present
by Al Martin
The requirement to be fingerprinted in CO should be done immediately for the following reasons:
20% of the fingerprints are not readable
The complete fingerprint process can take three to four months to clear CBI and FBI. Their studies show that approximately 20% of the fingerprints that have been submitted have not been readable by either the CBI, or the FBI. When the fingerprints are unreadable, the fingerprints must be resubmitted and a new 3 – 4 month process begins that must be completed before a real estate license can be issued. A candidate who is just now enrolling in school can’t start this process too early.
Current licensees who procrastinate will be inactive at the beginning of 2007
By rule, the Colorado Real Estate Commission can only approve an emergency rule on the same subject once. Because the emergency rule was granted in 2005, there can no longer be a grace period regarding fingerprinting. If fingerprints are not cleared through the FBI and CBI by December 31, 2006, or 2007, the Real Estate broker’s license will be placed into inactive status and the broker will be prohibited from performing any brokerage functions.
Mid October is the effective deadline in 2006 to avoid becoming inactive
Licensees begin renewing their licenses around October each year according to the Colorado Real Estate Commission. Brokers are encouraged to get their fingerprints done now and not wait until the fall to get the process started. If the past is a predictor of the future, brokers who begin the process in November or December will probably experience some period of inactivity in 2007.
Hurricane Katrina’s effects are still being felt in Colorado
Last year when hurricane Katrina hit Louisiana and Mississippi, the FBI was responsible for identifying over 50,000 victims and survivors, which is estimated to have increased the waiting time for fingerprints to be checked in Colorado by 10 – 12 weeks. The hurricane season starts this year on June 1.
Fingerprinting is becoming mandatory for many professions
Other professions now requiring fingerprinting as part of a more comprehensive background check are more numerous than ever before. These professions includes: daycare workers, public school teachers, security guards, attorneys, gaming industry professionals, concealed weapons licensees, securities professionals, insurance professionals, police officers, and liquor store owners just to name a few.
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Is Your Company Meeting Its Real Estate Recruiting Goals?
by Scott Guthmann
Each month I read in the newspaper about the increase in students entering real estate schools across the country. More and more associate brokers and salespeople are getting licensed each year. Even when the real estate market is flat or declining, more recruits decide to enter the profession than in the year before. In my role with Kaplan Professional Schools, I analyze the numbers and the trend is continuing. More candidates get into the real estate business each year than the year before.
So, where do all of the new recruits go?
In my conversations with managing brokers interested in hiring and recruiting, I notice some common concerns. Most feel that it won’t be possible to fill all of their open positions with brokers making lateral moves from other firms. Therefore, most managing brokers know that they must recruit a portion of their candidates fresh from schools and interview candidates before the recruit has a real estate license. Another concern I hear from employing brokers is that companies are not able to hire as many candidates as desired and they miss recruiting targets.
Change your recruiting message and change your results
Just look at the real estate help wanted ads in your local newspaper. You will see advertisements seeking experienced or licensed brokers. The ads then promote benefits such as lower fees and/or better splits and a method to contact the managing broker. Are ads like these working? Are the candidates starting with the competition? Did the candidates find a better [financial] deal elsewhere?
According to my investigation, the answer is no.
The assumption that newly licensed brokers or prospective agents shop around for a better deal is not supported by the research. Poor recruiting results are an unintended consequence of a job ad that disqualifies candidates, and a hiring process that rules out the potential applicants. Your competition is not attracting the candidates because of a logical decision by the new broker to search for a better deal. The novice broker is attracted to the enthusiasm of the hiring real estate broker and the training programs available.
Consider the profile of today’s real estate recruit
In every real estate licensing class, we give each associate broker candidate a one page survey. The survey results have been similar from state to state. What we have learned from our research could help you design a better recruiting message that will enable you to achieve your recruiting targets. Lower fees/better splits are not one of the top five reasons new brokers gave when asked why they chose one company over another.
New brokers decide which company to start with for two reasons unrelated to pay in general. They state that “their managing broker got them excited” as the top reason, and, “the company’s entry level training program got them excited” as the second biggest motivator.
If a recruiting message does not motivate a candidate to get excited about the managing broker and includes great entry level broker training provided, consider changing the message to include these two primary reasons that candidates give when they choose to enter real estate. “Career-Minded”, “experienced”, “full-time”, “licensed” phrases in ad copy eliminates qualified candidates.
Here’s the statistic: more than half of the candidates enrolled in a real estate licensing course do not plan to work full time pursuing a real estate career when starting. But, almost every licensed real estate broker I have spoken with has told me that it is simply not realistic to get into real estate unless a candidate is willing to work at least full time when starting. Are more than half of the candidates entering school being unrealistic? A simple way to double your recruiting results is to include those candidates who are looking for part time real estate opportunities. While some may not succeed in real estate over the long term, some will decide to make a bigger time commitment while planning their strategy in their new broker training. Meet this year’s recruiting goals by converting “part time” into “career-minded” or “full-time” brokers while employed as members of your team.
The number of 18 – 24 year olds choosing real estate as their chosen career has quadrupled in the last 10 years. Historically, a person has not chosen a career in real estate until after becoming a homeowner. Today, 22% of our licensing students are 18 – 24 years old. This demographic is representing clients in a real estate transaction before owning real estate themselves. To take advantage of this trend, make sure that everyone in your company understands that you would like to interview their eighteen year old children, grandchildren, nieces & nephews to let them know about the real estate profession. Even ask about the 18 year old relatives of the clients that your company represents. It makes sense that the larger your pool of candidates, the greater your chance of recruiting success. Recruiting relatives sets up a win-win for the recruits and the veterans. When an experienced veteran has a vested interest in the success of your newest associate broker, you really do have a winning formula for future success.
Contact Kaplan Professional Schools for more information
I have worked in education sales & marketing for more than 15 years. At Kaplan Professional Schools, I am your resource when crafting your recruiting message and planning for your real estate company’s future growth. Please ask me about the programs I have in place to assist you with your recruiting goals and let me know how I can work with you to make your plans a reality. I can be reached at (866) 858- 0610, or by e-mail scott.guthmann@kaplan.com. I look forward to working with you!
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How to Take a Vacation When Your Clients Need You
By Steve Oxman
When was the last time you took a vacation? I mean a real one. Not just a long weekend at the pool in your backyard (with cell phone handy), a massage session at a day spa, or a quick, required trip to a family wedding. When was the last time you traveled out of the country? When was the last time your cell phone was out of range for more than a week? When was the last time you really, truly, felt refreshed and restored?
Because real estate is a service profession, and because it’s commission-based, agents tend not to take time off. But studies have shown overwhelmingly that people who take regular vacations are more productive than those who don’t. Everyone needs to turn off for a while, relax, share an adventure, have fun.
The question is: how? There’s always a seller whose listing requires attention, a buyer who needs to start a new job and find a place to live by a strict deadline, closings to attend, escrow issues to negotiate, deals to hold together and problems to solve. If you’re successful, you’re juggling many transactions at once, and there’s never going to be a 2-week period that’s appropriate “down-time.” So you need to make that time and then manage your client base. The key is proper planning.
When is the right time?
Sure, there are natural times of year when the market is slower than others, but when the market is slow your clients often need even more of your marketing expertise and attention. So don’t wait to take a vacation until the perfect time for your business; there isn’t one. Plan the vacation for the perfect time for you and your family, and then make it work for your business.
Who will fill in for me?
The first step in making sure your clients are taken care of is selecting the colleague, or colleagues who will fill in for you. You want to choose experienced folks; this is not the time for testing out the skills of a new licensee. You should do that when you’re there to back them up, not when you’re out of reach. Consider a semi-retired colleague, someone highly experienced, reliable, and a calming influence who for personal reasons hasn’t been marketing for new clients.
When do I tell my clients?
The important element here is to make sure none of your clients feel blind-sided or abandoned at inopportune moments. About 2 months out, plant the seed for prospective clients and current clients you may still be working for. That far out, have it as part of the everyday conversation, not as a formal announcement. Ask them, “Have you ever been to Cabo? I’m taking my family there in March.” Then, about a month or so out, discuss it more specifically with clients.
How do I tell my clients?
Don’t send an email announcement – “Hey, I’ll be leaving the country and won’t be reachable.” This is something that needs to be done in person and in the right context. The fact that you’re taking a vacation needs to be immediately followed by the plan of action. Example: “I want to let you know that in a month I’ll be going on vacation with my family. I believe that if all goes as planned we should be in escrow at that point. I’ve arranged for (NAME) to handle anything that comes up during this time, and I’ll make sure you get a chance to talk to (NAME) when we get closer to the time. I’m sure everything will be taken care of ...” Keep a checklist of your clients you’ve told so you make sure not to forget anyone.
Tell clients when you’ll be unavailable, not when you’ll be leaving.
This is a great tip that more agents don’t consider that addresses one of those predictable truths: the time leading up to vacation is hectic, with packing and trying to finish up any transactions on the verge of completion or break-through. If you’re leaving on the 15th of the month, tell clients you’ll be unavailable starting the 14th. That will allow you to finish what you need to do to get away, and allows you to deal only with emergency issues if they come up.
How do I hand off my transactions?
If it’s possible, introduce your replacement colleague in person to your clients. If you can’t do that, make sure the replacement calls to touch base with them within the first couple of days of your absence. Clients should feel they are being serviced, that someone is there if they need something. Make sure you leave a thorough status summary of each transaction so the colleague can consult it.
How do I minimize the cost?
You need to think of your vacation as a mid-term investment in your business. Be aware, you are sacrificing short-term income for long-term mental health. Your vacation is a priority. That said, you want to do it properly, and to minimize the costs of travel and the impact on your business.
Long-term planning is key. You can’t do this right if you’re doing it on the spur of the moment. Unlike other professionals with regular full-time jobs and vacation benefits, independent contractors need to plan vacations further out for the sake of their clients. This has the added benefit of saving you money on airfare and hotel.
How reachable should I be?
That, of course, is up to you. Your clients should feel you can be contacted in a serious emergency. I recommend providing a single person, perhaps an assistant in your office, with a detailed itinerary with hotel phone numbers. Provide your clients and colleagues with that person’s contact information, to be used if absolutely necessary.
You can also establish dates when you will check your e-mail, so you’re not required to check it every day.
And, finally, even if you’re traveling domestically, you should turn off your cell-phone for the duration.
Remember, you’re on vacation.
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Home Buyers Are Bringing Back the Inspection
By Kirstin Downey, Washington Post Staff Writer
Saturday, March 25, 2006; F12
Like spring buds, home inspections are sprouting anew all over the area.
Home inspections faded from the market from 2003 until a good way through 2005, when sellers ruled the real estate world. Estimates show that in almost half of all transactions, buyers bidding against other buyers made their offers more attractive by dropping the home-inspection contingency from their contract offers.
Sellers reveled in this, because it smoothed the way to an easier closing, with fewer messy questions about whether the roof really leaked or the electrical system was up to snuff.
Now buyers are in a stronger bargaining position and they are insisting on inspections again.
"The market has slowed down for purchases, which is really good for home inspections," said Reggie Marston, owner and president of Residential Equity Management in Springfield. Marston said he performed 28 inspections in February 2005; this February, he did 35 to 40.
"It's the best I've done in the last three years," Marston said.
Arthur Lazerow, president of Alban Home Inspection Service Inc. in Frederick, also is seeing a big increase.
Another change, he said, is that listing agents are once again attending the home inspections, rather than just the buyer, the buyer's agent and the seller. These agents are trying to deal on the spot with questions when the inspectors find structural deficiencies.
Lazerow said many listing agents had stopped attending inspections because buyers seldom balked at problems. Now, he said, they are standing by, vigilant.
"They know it's more difficult to sell a house; each sale is more precious," Lazerow said. "It's like they are there to guard the house."
The pricing of home inspections has changed, too. In the past, when most houses had three or four bedrooms and two baths, inspectors charged set fees for their services, perhaps $250 per inspection.
But many houses have gotten much bigger, so many inspectors now charge a set fee, but then add a premium for additional square footage over a certain base level. Some houses are so big now that home inspections take two people to perform if they want to complete the review in a single day, Marston said.
Lazerow said the pickup in the home-inspection business has been slower in coming than he would have predicted. Many real estate agents are new to the industry, and they are not accustomed to telling their customers that getting a home inspection makes sense, he said.
"They've never done a home inspection, and now they are trying to learn what it is all about," Lazerow said.
Marston said many first-time buyers need to be informed about home inspections.
"Some of these folks are like ostriches -- they want to bury their head in the sand and say, 'I hope nothing goes wrong,' " he said.
Reprinted with permission from The Washington Post, Copyright © 2006.
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Real Estate Mortgage Fraud Is Costing Untold Millions; Industry Is Stepping Up to Protect Consumers
By Scott Guthmann
Real estate Mortgage fraud is occurring with increasing regularity across the country, costing buyers potentially millions of dollars in unnecessary financing due to industry losses.
One case in Colorado last year alleges that several defendants manufactured financial data in order to qualify illegal aliens for mortgages to purchase homes. Discipline was imposed in which the real estate broker agreed, among other things, to keep his broker’s license on inactive status until his pending criminal case is resolved. And due to the rising number of complaints like this one about mortgage and foreclosure fraud in 2005, Colorado’s attorney general, John Suthers formed the mortgage and foreclosure task force to help solve these problems in Colorado.
The task force has three goals:
• Create a public outreach effort to educate susceptible victims
• Develop methods for multi-jurisdictional cooperation among law enforcement and other organizations that confront foreclosure and mortgage scams.
• Draft legislative proposals to strengthen Colorado laws and provide greater consumer protection during the foreclosure process.
Mortgage and foreclosure fraud seems to be fairly rampant and poses a risk to the American Dream of home ownership, not to mention the nation’s economic well-being. In all likelihood, there is more fraud going on than anyone can know in Colorado.
Much of the problem seems to stem from lenders who ask appraisers to “hit a number” in order to inflate the size of mortgage loans. According to a study released last year by Demos, a New York-based public policy think tank, more than half of all 1. 2. 3. appraisers surveyed have reported feeling pressures from lenders or brokers to overstate property values.
Industry Reaction
Since its inception a year ago, the mortgage and foreclosure task force has:
• Launched investigations into refinance loans that may not have complied with Colorado Consumer Equity Protection Act in either loan terms or disclosures
• Issued 16 cease and desist letters to brokers and lenders with deficiencies in mortgage loan advertisements
• Investigated a foreclosure rescue program being marketed over local radio and the internet
Mortgage & foreclosure fraud shouldn’t be seen as just a case of white-collar crime. The Colorado legislature was so concerned that it passed mortgage broker registration and Governor Bill Owens signed the bill into law in June of this year. The new requirements for mortgage brokers are to submit fingerprints and initiate a Colorado Bureau of Investigations (CBI) background check, establish a surety bond for $25,000, and submit the application and fees to the Colorado Real Estate Commission (CREC) by October 1, 2006. The law states that the process must be completed by January 1, 2007; however, the CREC website suggests that October 1 should be used as a deadline to begin the process as the process takes about 3 months to complete. Colorado appraiser and real estate brokers have been licensed for many years by the Division of Real Estate with formal processes and disciplinary hearings scheduled monthly.
But mortgage brokers needed to be registered under the real estate commission’s authority as a next logical step in fixing the abuses. “All too often, appraisers were being forced to hit a number by mortgage lenders seeking a higher valuation so that loan sizes were inflated,” said Rick Larson, Dean of Student Services for Kaplan Professional Schools. Not surprisingly, in the past year, enrollment in Mortgage classes at Kaplan Professional Schools has increased.
While there is broad speculation about the real estate bubble bursting, mortgage brokers are sometimes less affected by a downturn. Home refinances, home improvement loans and other transactions require the continued services of a mortgage broker. In addition, the small number of mortgage brokers in some regions means there are plenty of opportunities for those new to the profession.
Consumer Protection
Mortgage Broker registration will no doubt help, but there are things that consumers can and should do to protect themselves. When hiring a mortgage broker, you should:
• Ask for their professional designations and membership in industry associations, such as the National Association of Mortgage Brokers, Colorado Association of Mortgage Brokers, Colorado Mortgage Lending Association, or the Mortgage Bankers Association of America.
• Inquire as to their access and/or use of technology.
• Ask about their years of experience.
• Gather 3-4 references.
• Go to a public registry, such as the one operated by the Colorado Real Estate Commission, to see if any complaints have been lodged.
If you think you’ve been the victim of mortgage fraud, predatory lending scams or identity theft in Colorado, there are several government agencies that you can turn to, including:
FBI Field Office, Mortgage Fraud, White Collar Crime Supervisor http://denver.fbi.gov/Phone: (303) 629-7171
Office of the Attorney General, Consumer Protection Section http://www.ago.state.co.us/consline/complaint.pdf Phone: (800) 222-4444 (CO only)
HUD Regional Office Phone: (303) 672-5440
Nationally Chartered Credit Unions, Region V—Tempe http://www.ncua.gov/AboutNcua/org/Region5.htm Phone: (602) 302-6000
State-Chartered Credit Unions, Colorado Division of Financial Services Phone: (303) 894-2336
Savings & Loan Association or Savings Bank Office of Thrift Supervision http://www.ots.treas.gov/resultsort.cfm?catNumber=88&dl=17&edit=1 E-mail: consumer.complaint@ots.treas.gov
Real estate mortgage fraud hurts everybody, but the industry is stepping up to make the necessary changes to provide improved protection and more highly qualified professionals.
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The Future of Electronic Transactions
An excerpt from “Commissions At Risk: A Real Estate Professional’s Guide to Beating Online Competition” by Danielle Babb, available from Kaplan Publishing
Because real estate and lending are both transaction-based systems, these relationships and processes will more likely be replaced with online services. While the industry has been aware of these capabilities, only bits and pieces of the process have been automated. Soon, however, packages will be released that will automate the entire transaction from “cradle to grave.” At that point, what will you offer to your clients that won’t be available online? It’s not enough to answer that question by saying “a personal touch”—many consumers don’t want it for the price.
Information technology has always taken an underlying role—obtaining loan approvals but not completing the transaction, for example.
The advent of new technology to be released in the next two years, such as e-signing and purely online loans along with standards created for these transactions to ensure every system can talk to other systems, will allow information technology to take an active role and eventually replace many brokers, agents, and other professionals in the industry such as appraisers and title companies.
Anytime there is an increased supply of a service, the price for that service drops. As Web-based services are rapidly deployed, the industry will be saturated with inexpensive services- as much as 90 percent lower—and only individuals who are ready for the transition will be able to compete.
As a real estate professional, you are keenly aware of your role and most likely the history of your industry. You must understand, however, how technology is changing the way people do business.
As individuals become increasingly comfortable with buying and selling property using online services (and this is particularly true for younger generations who have grown up with computers), the need for real estate professionals will diminish, and you will need to equip yourself with the tools to compete in this changing industry.
This has happened in other industries: The once-privy professional is replaced by information-driven Web sites, creating entire groups of professionals who no longer can compete with the convenience and inexpensive services that their new online competition provides. These professionals, especially those in the travel industry, have been so affected that they had to leave the industry because they did not prepare their businesses for the transition.
To read the next section “Worried or Not?” pick up a copy of Commissions At Risk: A Real Estate Professional’s Guide to Beating Online Competition.
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Realtor Safety: A Few Helpful Tips
By Rebecca Ray
Always Meet at Your Office—Or Another Real Estate Office
Always ask a prospective client to meet you at your office if at all possible. Do not meet a prospect at a property. Ask the person to come to your office and introduce the prospect to your colleagues. A criminal is less likely to attack you if they know they might be identifiable. If the person refuses to travel to your office, locate a convenient real estate office and ask the broker or manager’s permission to meet your customer at their location for safety purposes. Simply practicing this ‘office first’ precaution is a proven deterrent and could save your life.
Verify Identification Before Departing
Always ask for picture ID, phone number, automobile information; make, model and license plate number. A person who is planning to do harm wants to draw as little attention as possible. If you take steps to document ID and otherwise pinpoint their identity, you may discourage an attacker from acting on their plan. Maybe even take a picture of the person if they do not supply picture ID. Although, you should be careful around anyone not willing, or able, to supply state issued identification with their picture. To comply with Fair Housing Laws, you should practice these procedures with ALL prospects regardless of charm, gender or appearance:
• Put the prospect’s personal information in a file
• Be sure the file is easy to locate—should you not return from your outing with the prospect
• Leave detailed information about where you are going with the prospect
• Tell a friend or family member where you’re going and when you expect to return • • • •
Showing Property
• Drive your own car and park on the street, as apposed to a driveway where you could easily be blocked-in
• Keep your phone with you at all times, on your belt or in your purse, so you can quickly make a 911 call
• Allow your prospect to enter each room of the property before you
• Look for escape routes as you walk through the property
• Don’t identify a property as vacant to a prospect
Take Self Defense Classes
There are many options for self-defense classes. Do a little research to find what is available in your area with a timeframe that works for you.
Here are a few places and tips to help you begin the research process:
• Local Health Clubs
• Yellow Pages under “Self-Defense”
• Ask other REALTORS®, friends, and family members if they have taken a self-defense class that they would recommend
• Some local Association of REALTORS® will be offering Safety classes
Look for a class with a broad focus, which will include information on how to recognize dangerous individuals and situations, and most importantly how to avoid them and how to react in an attack.
Good self-defense programs do not tell an individual what he or she should or should not do. A program should offer options, techniques, and a way of analyzing situations. A program may point out what usually works best in most situations, but each situation is unique and the final decision rests with the person actually confronted by the situation.
Empowerment is the goal of a good self-defense program. The individual must always be equipped and prepared to make a split second decision about their response to a given situation. There are not right or wrong responses to a criminal’s wrong doings. Please just prepare yourself as much as possible and be aware of your surroundings to help avoid dangerous situations.
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Water Rights: The New Gold Rush
by V. E. Buck Anderson
For the past two years Kaplan has offered a course entitled Water Rights: the New Gold Rush. This course has primarily been attended by brokers with many years in the real estate business. This is unfortunate, because with the problems water, or lack thereof, can cause in a transaction, it is a topic all licensees need to become familiar with.
This course is written with the purpose of giving a real estate practitioner a basic understanding of water in Colorado, why it is so different from other states, and what we all need to know to properly represent our clients.
Perhaps you remember the case study, in the 2005 Annual Commission Update course, involving a pond constructed on a mountain property, and all the problems it caused the licensee in the case. The understanding provided in this course would have prevented a lot of the issues in that case.
Water rights in Colorado are real property, and as such, require a real estate or law license to legally collect a fee for selling them. They also materially affect the value of a property one of your agents or you may list and offer for sale. Should you not recognize this fact, and list a property without including the value of the water, or not properly convey water, you may place yourself in a position to be sued in court for damages.
Another area that may plague brokers in the future is the quality of the water rights in a special district responsible for providing domestic water to a client’s home or business. Just as one is required to know potential zoning and planning issues, I suspect that we will all be required to understand the sources of water in many of these special districts where problems may arise.
One of the most misunderstood areas of water in Colorado is the area of wells, all kinds of wells. The Kaplan course provides an understanding of wells, which is not covered in the basic real estate licensing course. This is one of the easiest areas for a broker to get in trouble in the real estate transaction.
Frequently we see people listing property for sale with little or no information about a well. Well production (gallons per minute) and water quality are only two of the three important points that need to be understood. The course will fill in the difference.
Students will receive a glossary of water terms gleaned from many sources. They will be shown many sources for additional information including books, web links, and governmental entities’ locations for their use in the future.
It is hard to earn in our business today. There is no reason to let it all slip away because we did not take the basic step of learning about such an important topic as water, and how it will impact each of us in the future. The drought times we are in now will amplify these problems, and make this course even more valuable to you and your brokers in the future. This course is offered as part of a CE Day Program, which includes the Annual Commission Update class in the package! Get all your annual education in one day a year with us at Kaplan Professional Schools!
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