July/August 2002 - CBR Announcements

Columbus Board of Realtors®
July/August Announcements

Witnesses no longer needed at closings
Real Estate License Suspensions may still be a problem
Real Esate may lose exemption to telemarketing rule
Wood Destroying Insect Inspectors must be Licensed now
One-Stop Shop - City of Columbus Development Services
new NAR International Web Site
Thieves Steal Homeowners Identities and Equity
Tax Benefits of Tying Business with Pleasure

Witnesses no longer needed at closings
The Ohio legislature passed a bill that eliminates the need for witnesses at property transfers, including deeds and mortgages. Property transfers must be notarized, however. The law took effect February 1, 2002. This brings Ohio in line with the laws in 44 other states.
See article in Daily Reporter (OAR mgmt update?)

Real Estate License Suspensions may still be a problem
Approximately 5,000 real estate licensees had their licenses suspended last year because they failed to renew their license. And virtually all of them incurred late fees because of this.

Although brokers used to receive the license renewal notifications for their agents, the renewal notices are now being sent to the licensee's home address.

It is expected that another 3,000 licensees will have their licenses suspended again this year. So pay attention if you see this envelope.

Real Estate may lose exemption to telemarketing rule
The Federal Trade Commission (FTC) is seeking revisions to the existing Telemarketing Sales rule, which, if adopted, would limit the ability of real estate agents and brokers to place cold-calls to prospective clients and customers.

The draft rule, which is part of an effort to create a national “do-not-call” registry, would allow consumers to eliminate most telemarking calls with one call to the FTC. The National registry would supplement the current company specific “do-not-call” list requirement.

More importantly to us, the proposed rule would eliminate the current exemption for calls related to the sale of goods or services that are not completed until after a face-to-face presentation. Thus, if the new rule is promugated, real estate professionals will no longer be exempt from the Telemarketing Sales rule. The NAR has sent comments to the FTC expressing its opposition to the proposed rule change.

Wood Destroying Insect Inspectors must now be Licensed
As of June 30, 2002, any person who conducts a wood destroying insect (WDI) diagnostic inspection for a real estate transaction in Ohio is now required to be licensed as a commercial pesticide applicator. Further, a WDI inspector must use the NPCA-1 form.

If you wish to check to see if an inspector is licensed, or have any questions, contact the Ohio Department of Agriculture's Pesticide Regulation Section at 800-282-1955.

One-Stop Shop - City of Columbus' Development Services www.columbusinfobase.org
After more than a year in planning, the city of Columbus Development Services One-Stop-Shop becomes effective July 1, 2002. The One-Stop Shop is intended to reduce the amount of time involved in the city's current permitting and building inspection methods. With the One-Stop Shop, customer service will be improved with a:
  • More streamline plat/plan approval
  • Quicker turn-around time for acquiring building permits
  • Credit card and/or check pre-payment for plan submittals at the customer service
  • Central contact for plan/permit updates and next day inspection

Other features of the One-Stop Shop will include a customer plan tracking and permit acquisition process via the divisions'website, which should be up and running this summer. Questions about the One-Stop Shop should be directed to the city's Development Division, 614-645-7433.

New NAR International Web Site - www.icrea.org
Members can now easily locate properties, professionals, and business practice information for more than 20 countries on the International Consortium of Real Estate Associations Web site. The new site is being rolled out in phases.

Phase one is open to the public, phase two, scheduled for later this year, will include a members-only side with an international referral system. All NAR members will be provided access. The site will also feature select properties, such as vacation homes, aggregated based on their international appeal.

Thieves Steal Homeowners' Identities and Equity
While the most common cases of identity theft involve credit cards, theft of home equity has also been reported. Currenlty, two cases of home equity theft are presently in court, with about 10 more under investigation.

In one case, two men were charged with preying on elderly homeowners in Detroit. They assumed the identity of these homeowners and stole their home equity without their knowledge. The FBI became aware of the scheme when a title company official notified them regarding a suspicious loan application. They located the thieves through photographs collected by a task force of federal, state, and local authorities.

Some of the victims depended upon their homes for income security and lost them as a result. However, Assistant U.S. attorney Cynthia Oberg says about half still have their homes.

Tax Benefits of Tying Business with Pleasure
Many taxpayers travel during the summer and tie the travel in with their business activities. In order to claim a business deduction for a combination trip, you must spend more time on the trip conducting business activities than personal activities. If this provision is met, the transportation costs going to and from the business location are deductible as well as the meals and lodging during the business time.

However, the transportation costs for side trips for personal purposes are not deductible, nor are the meals and lodging for the extra days spent on vacation.

Don't forget the normal restrictions of “reasonable” and “necessary” for business expenses. For example, if you travel 2,500 miles to an exotic location to take a class on agency, you must be able to show that the 2,500 mile trip was “reasonable” compared to the realistic potential income generated by the trip.