President's Perspective

If it looks like a duck...

Brad Bennett
President

In the January issue of the In Contract magazine I prompted our membership to display a positive attitude to the public concerning the benefits of owning real estate, and the great market conditions for buying property. As we saw in 2006, much of the downturn was based on the lack of consumer confidence, not on concrete reasons that should stop buyers.

Coming into spring 2007, we are seeing a positive growth in consumer attitudes. The media is more receptive to publishing positive articles, but our work is not done. We all need to continue this push, promoting sound real estate buying attitudes.

There is a lot going on at CBR. We are poised for the upcoming spring market.

The lockbox conversion was completed with few glitches, and our new Tempo Wireless MLS is ready to roll out in the next several weeks. You will love having access to listings and agent rosters on your PDA or `smart' phone while on the go.

A new MLS mapping search system is nearing selection and should be available in the second or third quarter. All the while, CBR staff and leadership are continuing the education and political lobbying efforts on your behalf.

For any of you that are reaping the benefits of our board and MLS, but are not involved, make it a point to thank the few hundred that give their precious time to the betterment of our industry and your continued success. It is not too late to be counted. You can still sign up for a committee, or, at least, make a significant contribution to our political strength through CORPAC.

Also, in my first article, I promised not to `sugar-coat' our industry news. Perhaps I am closing the barn door after the ducks have gotten out, but a word of caution would not hurt.

In a marketplace where we have many anxious sellers, we want to help them in any way to complete their sale. Recently there has been a significant increase in mortgage fraud. Sellers (and sometimes agents) are tempted by purchase offers that have sellers agreeing to pay monies "outside the closing" to the buyers. Or, the offers ask sellers to pay monies to other entities that are merely "shell" or "air" companies set up to take money away from the closing.

The result of this fraud is that lenders are lending more on the property than the actual value. Often the ultimate supplier of the mortgage money is not aware of the monies that the buyer took away from the closing. Sometimes in an effort to sell the property, we might `want' this type of transaction to `look' legitimate.

However, being involved in this type of transaction is not only a violation of Ohio real estate law, but a violation of the US Code.

There are a number of sales being investigated right now in Central Ohio by both the FBI and IRS.

In the past 2 years, the IRS cases alone have risen over one-third. As we know, ignorance is not an excuse when it comes to law, and the punishment is significant. We would all be well advised to read the US Code Title 18 Section 1014, Ohio Senate Bill 185, and our Ohio Real Estate Licensing Law.

If it looks like a duck, quacks like a duck, and walks like a duck...it is worth seeking advice to make sure you are in a legal transaction.

If not, Walk Away!!