Avoid Dual Agency Pitfalls and The Pitfalls of South Georgia Dual Agency!

Thomasville, Georgia is a small town, just because most of them speak with a country accent that makes them look so friendly, but please do not fall for their cheap accent. Sorry but I will call it as it is they are scumbags and believe me or not most are females, not to say they are not males because they are. These so called "Realtors" will sale a wheelchair right from under a disabled person and not even think about it twice, but on the weekend they are at church asking for forgiveness and then they are back Monday morning screwing people over again.

These lowlife are very aware of what goes on in this small town because most of them have lived in this town all of their lives and if your part of that lowlife group of "Realtors" which they all are aware of these bad lots and that trying to build a home on these bad lots will devalue the home, and when I say bad area, I mean "flood zone" in a flood zone you will pay a lot more then a regular lot for insurance. A "sinkholes" this is when you get so much rain that the land create a sinkhole. Now on hwy 19 in Thomasville, we have a subdivision that had a few sinkholes and this area has been on the news and with the stigma of this subdivision you will never sell your home, unless your local “lowlife “Realtor” works it out for the commission with another local lowlife “Realtor” to screw over a new buyer from out of town that is not aware of this subdivision stigma.

I was contacted by a nice couple that was looking for a piece of land to build their custom family home and they were not from here, they contacted a local lowlife “Realtor” and this lowlife “Realtor” wanted to sell them a lot and it was not even listed on the local MLS, so when a property or lot, land is not listed on the local MLS is because of a 2 reasons. 

1) It is a friend of this lowlife “Realtor” and they are aware of the problem with this lot or home and are trying to pass it along to a unknowing family. In a good scenario they would end up spending a fortune to build on the lot. worst scenario you would not be able to build on that lot. Now try to get your money back by re-listing the lot. The lowlife "Realtor" you get will tell you that you are going to have to drop the price that you paid because you paid to much for that lot or house. to pass it on to another sucker. "THIS SCENARIO HAPPENS EVERY DAY IN THIS TOWN WITH THESE LOCAL LOWLIFE "REALTORS" WITH HOMES AND LOTS."

2) Pocket listing, A pocket listing or hip pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an "Exclusive Right to Sell" or "Exclusive Agency" agreement or contract, but where it is never advertised. In this town number 2 does not happen often. 

A few years ago we had a person building really cheap homes below minimum building code and to make a long store short this person built these homes all around the county and city and he is still building in Thomasville, GA., but these homes he build a few years ago were really badly built, now the listing lowlife “Realtor” knew that these homes were being built bad, but she did not give two S**ts. You see she was only interested in the commission. But you see all of these lowlife "Realtors knew that these homes were being built bad they all were more interested in the commission then looking out for their client the buyer. So in Thomasville, GA. And South Georgia these lowlife “Realtors” do not care about you the seller or buyers. They say that “Realtors” have a Code of Ethics, not if they are from South Georgia they do not.

I have been living in this town close to 20 years, and I have seen and heard of so mean unethical activities that are unbelievable. I am a Florida and Georgia Real Estate License holder and I would prefer to sell shoes then to activate my license with any of these so called real estate agents in South Georgia or Thomasville, GA.

Why would you think that they are so many “For Sale by owner signs”? in South Georgia. The first time we came to this town looking at properties we most of gone through a few of these lowlifes "Realtors", because they just wanted to show us first all of their personal listings and then their office listings. when we asked about the “For Sale by owner” they would answer with “I do not have any information on that property and if it is not listed there most be something wrong with it. 

A long time ago I had my Real Estate license activated in Florida and our broker told us to try and go get the listing from a 'For Sale by Owner" and if we could not get the listing if they would be interested in paying 3% if we bring them a buyer and 99% of the time they would say YES. If you are a true professional Realtor you would look at the "for sale by owner" as a potential home to sell. No, not these lowlife "Realtors" they think they are worth 6% commission for doing nothing. Remember in Georgia these lowlifes "Realtors" are dual agents which means they get the full 6% commission. 

Now do you think they deserve 6% commission for selling a home on square footage alone. You see they are so lazy that they do not care to learn anything new a home has or what is so special about a particular listing. I am sure you are aware of these show on TV that sale real estate like "million dollar listing of new York". You sell properties on the custom features a home has. It might be a cliche' but yes that's how real estate agents really work. Not look at a listing and say one has more square footage then the other because any monkey can do that for less than 6%. 

Now these lowlife scumbags ”Realtor” when it comes to "For Sale by owners" they will talk bad about the house, they will tell a potential buyer anything that they can come up with at any cost to avoid showing a "for sale by owner" You see these lowlife "Realtors" are even willing to cut each others throat because remember they get full commission of 6% when they sell their own listing that is what " Dual Agency" is. And also remember they are all trying to make as much money as possible. They do not care about you the buyer or seller they are all money hungry. 

they will not tell you how much your house is wroth they will just take the listing and list it, then after a while when you have no showing they come and tell you that you have to low your price, because remember the cheaper you list it the faster they make their full 6% commission and they will not have to split the commission. And in some occasions when they take a listing the seller has to full out a property disclosure and by law they are supposed to list anything wrong with the property. Now it is very interesting how these forms are filled out. If you're buying a home I would take a very good look at this form,  because you are going to tell me that you have lived in the house all of your life or had the house built, or lived in the house for a long time and you are going to check mark on "you are not aware of any issues. "YEAH RIGHT" this would be the recommendation of the lowlife "Realtor" 

Then of they see that your home has been listed by them and then take the listing from them to another office they will not show it and there excuse is that that house has been on the market for a long time so there must be something wrong with it.

“ to be continued I will be adding more to this blog. 

-----------------------------------------------------------------------------------------------------------

Wouldn’t it be nice if life were clear-cut? Often in residential real estate it is: The most common legal arrangement in the business is for a listing agent from one company to represent the seller and a buyer’s agent from another company to represent the buyer in a transaction. The advantage to this scenario is that when negotiations arise or the parties are sending counteroffers back and forth, the two sides have a relatively balanced opportunity to obtain guidance and strategy from their own representative. But dual agency creates relationships with clients and customers that aren’t clear-cut.

For example, Rita Real Estate Broker is the listing agent holding an open house for her client, Sam Seller. Barb Buyer asks Rita details about the property during the open house, tells Rita she isn’t working with an agent, and asks Rita’s help in preparing an offer for Sam’s house. Rita has to stop, ask Barb if she’s asking for representation, and decide if she wants to enter into a dual agency relationship.

First Rita must resolve whether her state’s laws and her brokerage’s policies permit dual agency. Next, she must determine whether Sam Seller has agreed to let her act as a dual agent in the transaction and obtain his full, written consent to Rita’s new role. She must also disclose the limitations the dual agency will place on her ability to assist Barb and Sam. Only then will Rita have done everything necessary to create disclosed dual agency.

If she does enter into a disclosed dual agency relationship, Rita must observe her state’s dual agency laws, which probably require her to keep some types of information from each party confidential. In a dual agency relationship, Rita’s fiduciary duties to her clients are much more limited. She can no longer be an advocate for either party because each client has opposite goals.

Designated Dual Agency

Avoiding Dual Agency Traps

Dual agency relationships occur not only when one agent represents two parties but also when two agents from the same company represent two parties in the transaction. If Rita’s friend Alice Agent, who works out of a different office of the same brokerage Rita is affiliated with, comes to Rita’s open house with her buyer clients, Bill and Betty Buyers, and the Buyers later make an offer, once again, a dual agency relationship may be created.

In some states, there’s another option, designated dual agency. In these cases, the broker of Alice’s and Rita’s brokerage could designate one agent to represent the buyer-client and another to represent the seller-client. The broker would screen off some transaction information so that neither agent has access to the confidential information of the other party.

Although designated dual agency can work well, it poses the same general challenges as a typical dual agency arrangement. Designated agency still places significant responsibilities on each agent and on the brokerage to follow strict management policies to avoid compromising the integrity of the transaction.

In a few states — Colorado, Florida, and Kansas — dual agency is prohibited. This prohibition ensures that the real estate practitioner isn’t put in the difficult position of trying to satisfy both parties and risking that one or both parties may walk away feeling they didn’t receive the focused and thorough representation they expected. That dissatisfaction could lead to legal action, especially if there are problems with the transaction.

However, if dual agency is legal in your state and you want to make it a part of your business model, be sure to take these steps to ensure that both clients are treated fairly.

1. Review your state’s laws (consult with an attorney if necessary) to determine if dual agency is legal and what disclosures and procedures you must follow.

2. Review your brokerage company’s policy to see if dual agency is permitted and exactly what actions you as a dual agent may not perform for each party.

3. Disclose the dual agency and what it means to all clients in writing, and obtain their timely, written consent to the relationship. Be sure to explain how dual agency limits your ability to fully represent each party.

4. Review and discuss with your client any state-mandated agency disclosure forms. Some states also have statutory language that must be included in all dual agency agreements. Failing to properly disclose dual agency is illegal.

5. Recommend that both parties retain attorneys to advise them regarding the purchase agreement, contingencies, price, earnest money, or other negotiated issues. This can be a win-win for all parties involved since the client will be adequately represented and the attorneys’ participation will take pressure and liability off of the sales associate.

If you’re careful in informing all parties about the requirements of a dual agency relationship, acting as an agent for both can be a viable way to close deals. Just don’t let your desire to get the deal done lead you to inadvertently overstep the limitations dual agency imposes.

Never Agree to Dual Agency

Dual agency means serving two masters.  No other profession is permitted to routinely engage in this practice that most professionals feel should be banned (see our attorney survey on this topic).  No other profession has special laws written for them that automatically reduces their liability in these relationships. And real estate agents are perhaps the least qualified to handle this conflict.  Dual agency occurs when real estate agents represent both the buyers and sellers on the same transaction.  When that happens real estate brokers collect a double commission and  they are prohibited from doing anything to the detriment of either party.  That means that they can not help you negotiate price or terms of your real estate transaction.  It means that they are getting paid twice as much for doing a tenth of the work.  

Dual Agency is a conflictive relationship that strips buyers and sellers of service to a level that can best be described as abandonment. Dual agency arises when the real estate broker is representing both the buyer and the seller. It is illegal in every other fiduciary profession except under the most extreme circumstances. It is routinely practiced in residential real estate where there is the least amount of training. When a real estate broker engages in dual agency they may not work to the advantage or the detriment of the buyer or seller. In other words, all the reasons you hired your broker vanish - often with little warning.

Dual agents are legally prevented from negotiating price or terms (two of the most important reasons consumers hire Realtors). And perhaps the biggest problem with this betrayal is that it usually presents itself with little warning to the client - it is a bait and switch. The broker could be acting in the client's best interests all the way up to finding the house that creates a dual agency. At that point the buyer or seller are on their own.

In a dual agency, brokers don't have to share the commission with other brokers so they make twice as much money. They profit greatly from this practice. Realtors, who typically have no understanding of the legal ramifications of their own fiduciary relationship with their clients, often illegally counsel their clients of the so-called "benefits" of dual agency. We're here to tell you that there are NO benefits and that you should NEVER agree to dual agency. Find a small brokerage firm with highly qualified real estate agents and demand that they not engage in dual agency. The likelihood of dual agency arising with a smaller firm is far less than with a large firm.

http://www.caare.org/DualAgency

DOUBLE BUBBLE, DOUBLE DIP, ME-ME

Would you hire the same Divorce Attorney that is representing your ex partner?

Why would anyone think they are getting a better deal when their Agent also represents the seller?

Back in the Day…

Back in the day, when interest rates were 18%, and the MLS consisted of a huge 3-ring binder, agents and brokers mostly represented sellers, but the public didn’t exactly understand this. They would call up an office, or a listing agent to see a home, write an offer, and assume that whoever wrote that offer, was representing them. They had no clue that the listing company and agent were actually representing the seller!

Over the years, and many lawsuits later, the evolution of agency has emerged. And to be honest, the public still doesn’t get it, and neither do many agents.  The National Association of Realtors has released their Bi-Annual Legal Scan, and while agency in and of itself isn’t the leading cause of disputes, dual agency came out as a high ranking issue.

What is Dual Agency?

Dual agency occurs when one agent represents both the seller and buyer in the same real estate transaction.

When a potential buyer sees the advertising for a home for sale and calls the listing agent, the listing agent has a choice to show the buyer the home but only represent the seller or to convince both parties to agree to dual agency.

SOME CASES ARE NOT DUAL AGENCY

For example, a buyer wants representation by a REALTOR® while purchasing a FSBO. This can be confused with dual agency, and often is, but as both  parties are not represented (the seller is representing them self), there is no dual agency.

Some people may  not need to have representation. If we think of the experienced  investor, the lawyer selling a FSBO that only needs their house in the  MLS but is fine to handle negotiating, the contracts, and closing, or  possibly the buyer who has purchased before, and feels comfortable  enough to buy without the use of a buyer’s agent, but wishes that the agent  coordinates the closing details.

What are the Agents Responsibilities in a Dual Agency Situation?

If they are a REALTOR®, ethics says confidentiality for both parties   should be the norm. So even though the agent is working now for both   buyer and seller they have to provide fair business dealing to both.

However, the practice of representing both parties in a transaction  is  SLIPPERY.  One basic rule of agency requires maintaining   confidentiality.  When an agent represents both parties, the rules of   confidentiality essentially make the agent a document preparer at best.    They can’t share information about either party with the other.

For   instance, an agent representing both cannot tell a seller what the   buyer is willing to spend.  Conversely, the agent cannot tell the buyer   what the seller is willing to take.  Within the rules of agency   representation, it’s required that when an agent knows a material fact,   they must share that fact with their client.

The most important point for you to know about dual agency is that if   your agent is also representing the other side, your agent cannot advocate for you in negotiations or give you advice on pricing. This means that when you hit a stumbling block in the negotiations, your agent can’t fight for your needs.

Let’s say that a buyer and seller are negotiating and they are $5,000 apart on purchase price. When we represent the buyer, our job is to convince the seller that our buyer will not pay more and that they should take our offer because it is the best they will do. As a seller’s agent, our job is to convince the buyer that the house is worth more than they are offering, and the seller won’t reduce the price any more.

Dual agents can’t take either of these positions.

All a dual agent can do is present to each client what the other side has responded, and ask if the offer on the table is acceptable or if they want to make a counteroffer.

Who Benefits from Dual Agency?

With real estate agents coining terms like Double Bubble, Double Dip, Me-Me it’s no wonder there is a perception that Buyers and Sellers don’t benefit from dual agency. 

The only person who benefits from dual agency is the agent.

Many agents are eager to act as dual agents because they get to keep the entire commission. When an agent is hired to sell a home, a portion of the commission paid to the listing agent is given to the buyer’s broker. If the agent represents both sides, then they get to keep the entire commission.

How do I handle Dual Agency Situations?

I don’t do dual agency except in rare situations.

I think it is a bad idea and not in my clients best interests.

If I have a listing and show the property to buyers without their own agent, I explain that I am represent the seller. I let them know that they have 3 choices if they like the property and want to make an offer:

• I can assist with the paperwork  and the contract details just like a store salesperson can assist  the people that are purchasing products from the store. I represent  the seller and will encourage the buyer to accept the terms that the  seller wants. By the way, this is exactly what new construction  salespeople are doing when a buyer purchases a new home without a  buyer’s agent.  But this would be illegal when the Realtor/Broker is part owner of the construction company. This information must be disclosed to all buyers and when this information is not disclosed this would be considered a violation of license law. In this scenario you will end up losing more and paying more for your new home.
• I can refer them to another agent  that can act as their buyer’s agent…an agent that can represent  just their interests.
• They can find a buyer’s agent on their own, and have that  agent submit an offer on the house.

The next time you are in a market to buy, make sure you have your own agent.

If you discover a home through an ad or a yard sign, call an agent that you can trust and that will represent you– not try to sell you on dual agency. Rather than calling the agent working for the seller, and I can arrange a private showing for properties anywhere in Bloomington, Indiana.

http://www.welcomehomebtown.com/double-bubble-double-dip-me-me/

MY AGENT SAYS HE WILL BE DOUBLE DIPPING - THAT SOUNDS GROSS

First-time buyer – My agent showed me a house that I like and for which he is the listing agent.  I heard him use the term double-dipping. I know you’re not supposed to do that with chips and dips, but what is that all about in real estate?

Answer - Double dipping at the chips and dip station is a nasty party etiquette faux pas and it can be a nasty real estate practice too, involving not so much etiquette as ethics. Some states have enacted real estate laws and practices to limit the practice or at least to bring full transparency to it. Michigan is what is called a Designated Agency state. That means that we have laws that define the agency role and responsibilities when a Realtor signs a client up to be their listing agent or their buyer agent and it requires a clear definition and agreement with the client about what role the agent is playing.  The cornerstone of the concept of agency is the agent’s fiduciary responsibility to the client.

Curt Vonnegut used to do a commercial for TIAA-CREF, the retirement programs people, in which he had fun with the word fiduciary. It does sound funny. 

From Wikipedia comes this definition of a fiduciary –

A fiduciary is a legal or ethical relationship of trust between two or more parties. Typically, a fiduciary prudently takes care of money for another person.  In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts. A fiduciary duty is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): such that there must be no conflict of duty between fiduciary and principal, and the fiduciary must not profit from his position as a fiduciary (unless the principal consents). This also goes for Realtor working directly with a local builder. This is also called double dipping and when that Realtor/broker is part owner of new homes being built and sold by the same agent, that's illegal.

So, when a client signs up with a real estate agent to list his house, the agent takes on a fiduciary role with that client. That means that the agent may learn things from the client that the client does not want to others to know, such and how much he’d really sell the place for. The agent is bound by his fiduciary relationship not to disclose that to a buyer. The agent owes his loyalty to the seller.

So what happens when that same agent signs up a buyer couple and starts looking for houses for them. He owes fiduciary loyalty to the buyers and shouldn’t disclose things like how much the buyer is willing to pay to any sellers. So far, so good.

Now, suppose that the agent is sending the buyers listings and they happen to see one of his listings and want to see it. Even worse, they love it and want to put in a bid on it. Where do the agents loyalties lay now? Can that agent serve two masters? Some states allow that to happen and some put some pretty good restrictions on what the agent can do and what level of transparency has to be maintained for both parties to the deal.

Michigan requires that the agent get the written permission of both parties before he should even show the house to the buyers. That written permission should state clearly the compromise that the agent will have to make if placed in this position. The things that need to be dealt with in that document include what the agent can and cannot disclose to either side and includes a strict prohibition against sharing any secrets or confidences that either party has already shared with the agent. Potentially a bigger issue is the fact that the dual agent can no longer negotiate for either side. If having the agent there to handle the negotiations was important to either side, that is gone if the agent is allowed to become a dual agent. Some states, like California, that don’t have designated agency laws in effect, are currently dealing with dual agency cases in their court systems that could have major impact across the country.

So, what’s the double dip thing? That means that the agent is going to receive both sides of the commission – double what he/she would normally make – thus a double dip into the commission pot. That’s not an illegal things or necessarily a bad thing, but is does provide the motivation to perhaps not render as much fiduciary responsibility as is still possible. The agent may become more motivated by the opportunity to double dip that to protect the interests of both parties. Money tends to corrupt like that.

How can you protect yourself against the potential problems that could be caused by dual agency? The simple answer is not to allow it. Since the agent needs to have your permission in most states to act in a dual agent role, just tell them that you’d prefer not to do business that way. Ask them to have a different agent represent the buyer or you, so that each of you has an agent who can give you the full fiduciary attention and responsibility that you should have. In states that don’t have Designated Agency laws that may mean finding an agent in a different company.  

Your agent may refer you to another agent and it is perfectly legal for him/her to get a referral fee for doing that. That way you are still rewarding the agent who worked for you and found you the house that you want, even if he/she can’t be there with you through the sale. If your agent refuses to do something about the dual-agency issue, then fire that agent and find another agent. He/she was more interested in double dipping that in making sure your interests were properly served.

The agent might take the position that he can represent only the seller but can still do the paperwork and put the deal together. Listing agents who meet unrepresented buyers at open houses in their own listings often take that approach. You’ll need to decide whether you feel comfortable with that and whether you are concerned that the agent may already know enough about your and your wherewithal to put you at a disadvantage in the negotiations – people do tend to talk at open houses, especially to the friendly, nice man that showed them through. You can see how hard this can be to keep straight. Double dipping has been a fairly common practice in many places and is a favorite with many agents for obvious reasons; but, the bottom line is that it’s up to you and you need to feel completely comfortable with the representation that you will be getting in the deal. If you are not, remember the advice that you used to hear about drugs or teenage sex, just say no.

 http://normwerner.realtytimes.com/advicefromagents1/item/28614-my-agent-says-he-will-be-double-dipping-that-sounds-gross

 

Should A Home Buyer Use The Listing Agent?

Very Will said. Excellent article! This is one of the best written articles of dual agency I have seen in a long time. This is a must post article in my area just because of the overwhelmed practice of dual agency. 

Double Dipping

Home Buyers should be aware of what Dual Agency means specifically to them and the purchase of a house or condo.   In the real estate business we refer to this as “double dipping.”

It has been written about for years that when a listing agent also represents the home buyer, it either means no one gets represented fully where the real estate agent becomes neutral or the home buyer is left out in the cold with no representation at all. You need to remember that a relationship was established with the home seller long before the home buyer came into the picture.  In other words the fiduciary relationship was originally with the seller.  You can’t serve two masters fairly! And don’t let anyone try and convince you otherwise.

Dual Agency is Double Dipping

A definition of dual agency is “a breach of agency rules” which must be disclosed to the parties because the agent has a conflict of interest when representing both the buyer and the seller. That should tell you something!

I prefer an “arms length” transaction where I totally represent my client and I do NOT do dual agency. Anyone who says they can give both sides equal representation is fooling himself/herself as well as the uneducated client.

Do some real estate agents like dual agency, well sure they get paid twice. But, for the inexperienced real estate agent who thinks only of the double commission, they may find a lawsuit will eat up that double dipping!  The number 1 claim and complaints filed are about Dual Agency. More real estate complaints occur due to Dual Agency where the client’s did not feel they were fully represented.

These are the States that ban Dual Agency:

• Alabama
• Florida
• Kansas
• Maryland

Now, the uscrupuious listing real estate agent who has lingo down pat of, “I’ll give you your own PRIVATE showing.” Or scares the buyers into thinking they have to write a contract with the listing agent in order to get the house are all examples of an unethical real estate agent. The uneducated, naive home buyer is typically the one who falls for this lingo. And in the end, some of those very home buyers actually think they got a good deal…how sad!

Private showings are always the case whenever a home is shown unless it’s an Open House so don’t fall for the “private showing” gibberish. And scaring a home buyer into thinking they must write the offer with the listing agent in order to get the house is not only unethical, it’s a lie.  The seller will pick the best offer.  The seller only cares about how much money they will net.  So, don’t fall for that lie.

Do you double dip your chip in the dip? Then don’t be represented by the same real estate agent that represents the seller.  Some things are just not Kosher.  And if you have an established relationship with a REALTOR®, then by all means be loyal and don’t fall prey to ridiculous rhetoric from a listing agent.

In summation, this article is for all home buyers.  You have now become educated on the pitfalls of NO REPRESENTATION when going along with Dual Agency.  The first question an ethical REALTOR® asks is, “are you currently working with a real estate agent?”

A unethical agent never asks and ropes you in and hopes you fall for their tricks while smiling all the way to the bank.  Wise up home buyers and don’t be taken! When you go to that Open House without your REALTOR®, then take their business card with you and speak up…I have a REALTOR®.

http://sacramentorealestatevoice.com/should-a-home-buyer-use-the-listing-agent/#comment-44863

Buying a new Home in Thomasville or South Georgia Compare features..

Custom Green Homes from $86/Per Sq. Ft.

We don't build eight minimum code homes at a time we build custom green high-performance homes and we build it right. Don't overpay for a new home with less features and an overpriced H.O.A in South GA, We are the only builder building green homes in South Georgia with Energy bill GUARANTEED!

Capital Home Builders – We are the only true custom home builder in Thomasville, and South Georgia.	CHB Homes	Other New Homes
All of our homes are built with Florida Code NOT Georgia…. Better Code / Better Homes..	X
1) Stronger foundation and Footers - Our Found are built with Wire Mash and Fiber	X
2) 2X6 Exterior Walls  - Stronger House and More Wall  Insulation	X
3) Continuous load Path - Stronger House (Ask other builders will not know)	X
4) Trusses Design with Heel for extra insulation	X
5) Titanium Underlayment With Ice & water and installed properly.	X
6) Whole House Surge protector	X
7) Hole House Wiring For Smart Home	X
8) Video Surveillance Monitor on Vacation	X
9) Smart thermostat Lower A/C with Smart Phone.	X
10) 2.5 Ton 16 SEER A/C unit. For a 2,500 Sq. Ft. Home. Very Energy Efficient	X
11) Tankless Water Heater	X
12) Top Quality Energy efficient Windows	X
13) Advanced Framing - (Ask Other Builders Will not know what that is…)	X
14) Insulated Georgia.	X
15) No Bath inserts – Top Quality Porcelain Tile	X
16) Dual Flush Toilets	X
17) Architectural Shingles – NOT three tab shingles other builders use.	X
18) 2’ Overhang trusses for more shade – Other builder NO….	X
19) 6" Fascia For a better roof look – Other Builders 4” Fascia	X
20) High Quality Cement Board Siding.	X
21) Driveway has Fiber with Wire mash – Other Builders DO NOT	X
22) A/C Unit reviewed by a mechanical Engineer	X
23) Our homes are rated by an Energy Smart Rater.	X
24) LED and CFLs - All of our homes come with High-End Lighting	X
25) HERS Rating of 54 THAT MAKES OUR HOMES 46% BETTER THAN ANY OTHER.	X
You will not find a better built home in Thomasville and South Georgia	X

MAJOR FEDERAL CRACKDOWN ON REALTY FEE KICKBACKS UNDERWAY

The federal government has issued a warning to realty agents, builders, title agencies, mortgage brokers and other industry participants: Get ready for a wave of RESPA crackdowns, and financial penalties that could make your head spin.

In remarks last week, the federal government's top Real Estate Settlement Procedures Act (RESPA) investigator, Ivy Jackson, said that a recent $450,000 settlement with Tulsa realty agents and builders is just the tip of the iceberg. Potentially dozens of additional crackdowns are in the wings.

Jackson heads HUD's RESPA enforcement unit, and has unleashed dozens of on-staff and contract investigators -- often ex-FBI, Customs Bureau or financial regulatory agency sleuths -- to break up what she called "blatant violations" of federal anti-kickback rules among realty agents, title companies, lenders and others nationwide.

"We are doing investigations in every state," she said, and "we anticipate a very busy (enforcement) year." Jackson's office gets hundreds of tips a year about alleged payoff arrangements involving realty agents, brokers, lenders, mortgage brokers, builders and title and escrow agencies every year. The tips come mainly from local competitors inside the industry, but also are sent in by individual consumers, federal banking regulators, and state officials.

The Tulsa settlement, unveiled in late March, involved allegations that realty agents and builders created shell corporations that bought into local title companies, and then distributed referral-fee kickbacks based on which agent or builder made the referrals to the companies. The participants all denied wrongdoing, but agreed to pay nearly half a million dollars to settle the case.

That settlement followed a much larger agreement with Chicago Title Insurance Co., involving alleged referral-fee payoffs in Texas. In that case, Chicago Title paid the federal government $5 million and the Texas Department of Insurance $1.2 million . HUD alleged that Chicago Title knowingly participated in schemes involving falsified closing documents and illegal payoffs. Chicago Title denied all wrongdoing as part of its settlement.

Jackson told a, real estate lenders and brokers, conference last week that "we are using every resource at our disposal" to move against realty agents, mortgage brokers, lenders and title companies "who ignore the rules" on referral fees. Jackson said that over 60 major investigations, or settlement cases, are currently underway, and that the department now routinely works with state real estate and financial regulatory officials, insurance commissioners, and state attorneys general to identify and stop illegal activities.

She conceded that until recently, RESPA enforcement was less prominent than it is now. But HUD has recently tripled its RESPA investigative staff, and has a contract with a company in Virginia that provides ex-FBI, ex-Customs Bureau and other trained law enforcement and financial investigators to deconstruct even the most sophisticated cover-ups of referral fee arrangements.

In the Tulsa case, for example, Jackson said the realty agents and builders created a "multi-tier" kickback scheme which appeared to pass federal legal tests at the surface level, but failed at the next level below. RESPA prohibits anyone from giving or accepting a kickback, or other thing, of value in exchange for referral of settlement business. HUD regulations permit realty, lending, and title agencies to create "affiliated business" arrangements and joint ventures, but require the participants to have bona fide economic stakes at risk in the ventures. The rules also require distributions of joint venture profits according to ownership shares, rather than on the basis of numbers of referrals of business.

According to HUD, the Oklahoma realty agent and builder ventures distributed profits, based on volume of referrals,and allowed some participants into the scheme for nominal, below-market investments. HUD also charged that the title companies marked up some customers' fees illegally.

I really hope they come our town soon…… 

http://realtytimes.com/agentnews/agentconcerns1/item/10614-20050404_respacrackdown