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HB29 Update Are you sure you are ready?
Last
Friday the Alaska Real Estate Commission had
their last meeting before the effective date of
HB29, which is Jan 1, 2005. As one of 2
spectators in the room I was concerned. Members
of the industry, brokers and sales people alike,
were not there. Given the shortness of time
before a major part of our business
significantly changes, it should have been
standing room only. Forms and policies are not
clear or complete. Whether we are allowed to
open the door on a showing without a signed
state document was argued by the commission
members and unresolved, as it was forwarded to
the department of law for a ruling. That state
pamphlet all licensees must have their consumers
sign is not out of the AG's office in final form
either.
The Alaska
Association of REALTORS last Wednesday had their
last training session on the new requirements
before they take effect. I spoke with one of the
instructors at the REALTOR class, Dave Feeken.
He has traveled extensively around the state to
let licensees know the significance of the
sweeping changes. In many cases he observed
students who were shocked because they had no
idea how big the changes were until they came to
the class, and on realizing it, knew they needed
more training to stay out of trouble. Many in
the class last week felt the same way.
There are
also many details that won't be clear until the
courts decide. In the meantime a few companies
have spent many hours getting their agents
ready. Most haven't. Last license renewal I
taught 6 elective hours of agency in our 20 hour
programs because of requests our students made.
This new law could easily require 6-8 hours for
most people to understand it enough to stay out
of trouble.
Brokers are
even harder hit because they have to guess what
to do while the dust is settling. In less than 3
weeks brokers must have a policy and procedure
manual written not only for their licensees, but
also available for consumers and the real estate
commission. They have to define guidelines, in
writing, for 3 types of relationships with
consumers, that haven't existed in Alaska
before. The proposed regulation also called for
disciplinary action against the broker or their
designee, if they did not communicate office
policies in writing, or if prior to recording, a
complete review of all documents was not done
with copies in the file. No definition of what
documents are required currently exists.
Some
licensees and brokers haven't even read HB29 and
that’s a problem. Some haven't gone to a class
to understand how things have changed.
Many people
have worked hard and volunteered hundreds of
hours to bring this change about. It is a good
change for consumers and licensees. There is
going to be a transition period to get there. 12
years ago when Colorado moved in a similar
direction they had similar problems and it took
education and discussion to plug the holes and
discover points that were overlooked.
We are making
a number of resources available to help fill the
gaps. Click on this
link and you will go to a special webpage
with a number of resources. You will find a copy
of HB29, also the most recent version of the
pamphlet waiting for the Department of law to
release, and a place to ask questions and
comment on questions others have.
We are
finalizing a policy and procedure manual that
will be available next week for purchase for
$149. It is very thorough and has over 165
different issues addressed. It includes needed
forms and can be customized to a company's
situation in less than an hour.
Besides the
website, and the policy and procedure manual, we
are also doing several classes. Monday Dec 13
from 1:30-5:30 pm, we are having a four hour
class with 2 hours of CE on the subject. The
class will be at our office and we will make
room for all interested. Cost is $75. Either
email or call us to let us know if you would
like to attend. We delayed a course in Fairbanks
until Jan 22, to complete the manual next week.
We will also be doing classes in the first 3
weeks of Jan. As people attempt to practice this
new model of real estate, questions will arise.
We are putting together a panel of experts to
address your questions. Hope to see you
soon. |
