Announcements

NEW Residential Real Estate Purchase Contract

The new residential real estate purchase contracts debuted March 1.  A complete explanation of the changes and modifications was published as a special insert in the February issue of the magazine.  An article answering questions from the initial classes was published in the April issue.  Additional Classes on the new Purchase Contract have been scheduled for May 17 & 18.  Purchase the new forms from the CBR Member Service Center.  Cost for the 8-page contract sets (4 double-sided pads of 30 sheets each) is $10 plus tax.

Trademark Judges Unanimously Uphold NAR’s Right to REALTOR® Mark

In April, a three-judge panel of the United States Trademark Trial and Appeal Board unanimously ruled that the terms “REALTOR®” and “REALTORS®” are not generic terms. Petitions to cancel National Association of REALTORS®’ rights to these terms were denied.

In the 39-page opinion, the judges made the affirmative finding that the terms are not generic, that is, they are not synonymous with real estate agent or real estate agents, and concluded that the petitioner failed to prove otherwise.

Since 1916, when the unique term “REALTOR®” was coined, the term has come to be recognized as identifying members of the National Association of REALTORS®.  NAR registered the trademarks in 1949 and 1950, soon after a new trademark act went into effect.

The Trademark Board’s decision was issued in a case involving a challenge brought by Jacob Zimmerman, a former hotel management student at Cornell University who registered approximately 1,900 domain names containing the word REALTOR® in hopes of making money selling the URLs.  The challenge was the most recent in a series of unsuccessful challenges to NAR’s right to use the terms “REALTOR®” and “REALTORS®”.

Your client can buy a home for less than $500 down!

Columbus Housing Partnership (CHP) has up to $168,000 to disburse to eligible individuals for down payment assistance toward homeownership. At CHP:

• Help your clients receive $3000 to $6000 in down payment assistance for a home. This down payment assistance is forgiven after five or six years of ownership.
• CHP was also awarded an additional $90,000 funding for 2004.
• This property must be a primary residence.
• This property must be located within designated areas.
• Participants can obtain this assistance with as little as $500 of their own money.
• Participants can learn about homeownership at CHP’s FREE home buyer education classes.

For more information about these down payment programs and eligible tax districts, call Columbus Housing Partnership at 221-8889, ext 134 or visit www.chpcolumbus.org.

OAR Management & Industry Update

The Ohio Association of REALTORS® will host its annual OAR Management & Industry Update in Columbus on Thursday, June 10, 9am to noon at CBR. This unique program examines real estate license law, technology trends and legal cases that affect Ohio REALTORS®. The program is approved for 3 hours of continuing education. To register, call OAR at 614-228-6675.

Win a $7,500 grant for your community cause

REALTOR® magazine is seeking nominees for its fifth annual Good Neighbor Awards, which recognize REALTORS® who positively impact their community through volunteer work. Five winners will be recognized at the 2004 REALTORS® Conference & Expo in Orlando and will receive travel expenses to attend the show and a $7,500 grant for their community cause. Volunteer work might include affordable housing initiatives, youth mentoring, homelessness prevention, or anything else that makes a community a better place to live. Entries are due May 28. For more information and an entry form, visit http://www.realtormag.com/rmodaily.NSF/pages/goodneighborhomepage

Court deems Administrative Assistant Employee

Exercising employer-like control over his administrative assistants was found liable for tax penalties even though he considered his assistants independent contractors, the U.S. Tax Court found, affirming an IRS determination. Although the case discusses an attorney’s law practice, the issues raised by the court could apply to real estate brokers who use administrative assistants.

New Record set for World’s priciest home sale

London’s Sunday Times reported the sale of a home near Kensington Palace, the former home of Princess Diana, for $128 million, a new record for the world’s most expensive home purchase. London resident Lashmi Mittal, owner of one of the world’s biggest steelmaking companies, and number 62 on Forbes magazine’s list of the richest people in the world, contracted to buy the 12-bedroom house from Formula One racing car baron Bernie Ecclestone. The transaction bumped a $101.6 million sale made in Hong Kong in 1997 to number two on the world’s list of priciest properties sold.

Free Credit Reports - once a year

The Federal Trade Commission has proposed a program which will require the three national credit bureaus — Equifax, Experian, and Trans Union — to create a new, single-source organization that will provide a free credit program to anyone who requests them – once a year.  Under the FTC’s plan, consumers will be able to contact the new credit report service center, make a single request via email, telephone or mail, and receive their three bureau credit reports within 15 days. So as not to overwhelm the three credit bureaus with requests, the service will be phased in starting with the western states on December 1, 2004.  The midwest region (includes Ohio) is scheduled to become eligible for free credit reports March 1, 2005.

Company can access Independent Contractor’s e-mail

U.S. Court of Appeals, Third Circuit; Fraser v. Nationwide Mutual Insurance Co., 2003
A company has the right to access an independent contractor’s e-mail if the data is stored on the company’s server, a federal appellate court has ruled. Richard Fraser was working as an independent insurance agent, until the insurance company terminated his agreement in 1998. In a subsequent dispute over the termination, the company said it had fired Fraser in part because in accessing his e-mail it found that he was drafting letters to competitors about their interest in acquiring the company’s policyholders. Fraser filed a lawsuit for wrongful termination.

The trial court found in favor of the company, and Fraser appealed.

In reviewing the case, the U.S. Court of Appeals found that although the federal Electronic Communications Privacy Act prohibits “intercepts” of e-mail, the company hadn’t intercepted the e-mail during transmission. Instead the company’s general counsel had located the e-mail in question by reviewing the subject headings of mail that had already been sent.

The court also considered whether the company had violated the provisions of the act that prohibits intentionally accessing an electronic communication service without proper authority. The court decided that because the e-mail was stored on the company’s own server, this prohibition didn’t apply.

Although this case doesn’t deal specifically with a real estate practitioner, NAR’s Legal Affairs department says the ruling would likely apply equally to a real estate practitioner whose e-mail was stored on a company-supplied e-mail system.