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Nebraska R

NEBRASKA ~~uaucATIONS

CLEARINGHOUSE

Commission oEc 14 1994

COMM I SS I COMMERr Winter 1994

Governor Appoints John Hansen to Commission Governor Ben Nelson appoint- John is a graduate of Bellevue

ed John Hansen to a six-year term High School and a graduate of on the Real Estate Commission. Augustana College in Sioux Falls, John is co-owner and founder of South Dakota. He has also served Century 21 Real Estate with two years in the United States offices in Bellevue and Papillion. Army. He has been in the real estate busi- John actively serves his com­ness in this area for the last 24 munity in a variety of endeavors. years. He is currently a district chairman

with the boy scouts. John is a member of the Bellevue Chamber of Commerce and Kiwanis Club. He is a Director of the Airforce Association and Community Advisory Director of Norwest Bank. Additionally, John has served on the Bellevue Board of Education for the last ten years and is currently the President of the Board.

John has been a resident of Bellevue for the last 38 years. He makes his home, there, with his wife, Janet, and their three chil­dren; Chris, Nick and Kate.

L to R: Les Tyrrell, Forrest Pollard, Jerry Schleich, Gayle Stock, John Hansen, Allen Beermann, Kathleen Fahey, Tom Dover

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On The Inside:

Holiday Message ........ page 2-3

HUD' s Earnest Deposit Requirements ................. page 4

Seller Property Condition Disclosure Statements ... page 5

Cancer Society Honors PaulQuinlan ................... page 7

Commission Meeting Schedule

January 25-26, Omaha

Nebraska Real Estate Commission

COMMISSION COMMENT Official Publication of the

Nebraska Real Estate Commission 1200 "N" Street P.O. Box 94667

Lincoln, Nebraska 68509-4667 (402) 471-2004

EDITOR: Teresa Hoffman

. COMMISSION MEMBERS CHAIRPERSON Allen J. Beennann Secretary of State

State Capitol Lincoln, NE 68509

( 402) 471-2554

PUBLIC Member At Large Kathleen A. Fahey

1236 South 113th Plaza Omaha,NE 68144

( 402) 33()..6646

SALESPERSON Member At Large · Gayle L. Stock

11213 Davenport Street Omaha, NE 68154

( 402) 334-5SOO

BROKER MEMBERS ·Thomas E. Dover

1000 Norfolk Ave., P.O. Box 939 · Norfolk, NE 68701

( 402) 371-0200

Forrest J. Pollard 1515 North Webb Road Grand Island, NE 68803

(308) 384-4200

Gerald L. Schleich 3901 Nonnal Blvd., Suite 203

Lincoln, NE 68506;.5250 (402)436-.3112

John F. Hansen 2200 Harvell Dr.

Bellevue, NE 68005 (402) 291-~800 .

DIRECTOR Les Tyrrell

1200 "N" Street, Suite 402 Lincoln, NE 68508

(402)471-2004

The Nebnwka Real Estate Commission grants permission to i;eprint articles which appear in this newsletter on condition that recognidon of their original publication in the Nebnska Commission Comment also appears with the article.

The Nebruka Real Estate Commission oftm solicits articles from outside experts or reprints articles with permission. While we feel that· these articles may offer a broader perspective and will be of interest to the reader, it should be remembe.ted that the views expressed are those of the author and not necessarily those of the Commission.

@Printed with soy Ink on recycled paper •

OPEN LETfER TO ALL REAL ESTATE LICENSEES FROM ALLEN J. BEERMANN, SECRE­TARY OF STATE AND CHAIR­PERSON, NEBRASKA REAL ESTATE COMMISSION

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Greetings,

My God! You have waited a quarter of a century for me to be without words!

Special friends, fellow Nebraska licensees - one is never quite prepared for a moment: like

this ----------------. I'm writing my last holiday let-

ter to all of you as Chairperson of the Nebraska Real Estate Commission.

Over the years you have created magic· moments for me -- now a quick trip down memory lane. I am awash in memories. I'm warmed by our friendship, hon­ored by your kindness and grateful for wonderful friends I've made over the last 24 years as Secretary of State 81).d your chairperson.

For some reason I know at thi~ moment that my life should not be judged in terms of honors or awards, but rather by relation­ships, not in receiving, but in giv­ing, not in status, but in stature. I am so much in your debt for the joy you have given, and the rich­ness of your friendship and pro­fessionalism.

Words alone cannot express the depth of my gratitude, my respect and admiration. You believed in me - so I could believe in myself and be of service and offer leader­ship, guidance and direction. Everything tlµtt really matters in . life is represented by real estate licensees. Yes - it is important to

(Continued on page 3)

(Continued from page 2)

set aside space for an article like this for a number of reasons .... the most important reason is to simply relish in each others honor and to appreci­ate each other.

The personal dynamic that is always most alive is that of family. In public life it is the greater family - the community. You provided me the crucial emotional support, caring and compassion that knew no bounds and the help to let me find the highest expression of public service.

Finding a way to say "thank you" poses a problem. We say thank you to someone for saving a life -- and "thank you" to someone for passing the salt. The same two words are supposed to convey many shades of mean­ing and different degrees of feeling. As inadequate as these two words may be, my family joins me in saying "thank you" as we express our grat­itude and delight for a wonderful journey -- together over these past 24 years.

As I leave the office and chairpersonship, I am too proud to walk behind you, too humble to walk ahead of you - rather please give me the honor of walking with you - side by side.

During the Holiday Season, our thoughts have been directed toward the many fine associations we have enjoyed during the past year. On the threshold of the New Year, our wish is that the peace and happiness of the season will be yours every day throughout the year.

The Holiday Season gives all of us an opportunity to reflect on those events that have meaning and purpose. This same season we hope is filled with joy, cheer, good will and acknowledgement of many blessings that come our way.

I close, sharing with you this menu for the upcoming year, served with the best of wishes:

Appetizer of happiness, hearts of gladness, Generous portions of warm friendship, Thick slices of merriment, Excellent health, smooth temperaments, Prosperity, with casserole of contentment, Souffle of sweet thoughts, Sparkling cordial spirits.

In appreciation of our valued friendship, it is a privilege to send to you the very best wishes for a New year filled with good health, happiness, and the joys of meaningful accomplishment.

With appreciation and good wishes

ALLEN J. BEERMANN Secretary of State - Nebraska Chairperson, Nebraska Real Estate Commission

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BUD'S EARNEST DEPOSIT REQUIREMENTS (Editors Note: We invited the Housing

Management Division of the Omaha Department of Housing and Urban Development (HUD) to share the information contained in this article with our readers. Many real estate licensees work with or will work with HUD in transactions described here. It is our hope that this article will pro­vide clarification and guidance to those so involved.

Our thanks to the author, Ms. Nancy Sheets. Ms. Sheets has recently been select­ed as Single Family Housing Division Director, for the Omaha HUD office. Nancy has been with the agency for 19 years. She will have oversight responsibility for all FHA single family mortgage loans in Nebraska.)

Nebraska's growing real estate industry presents many problems for agencies, especially in the area ·of training new salespersons. This task is complicated even more by changing regulations and policies at government agencies as they struggle with the challenge of reinventing government.

The Department of Housing

and urban Development (HUD) is one such agency that continues to change as we strive to improve our sales program. This can be sometimes confusing to especial­ly new agents as our requirements are different from the standard operating procedures. HUD has specialized contracts which allow maximum closing costs of five percent and a maximum sales commission of six percent. In addition, HUD requires special forms, an earnest deposit certifi­cation and lead-based paint addendum, be attached to the offer when submitted before it is considered valid. HUD does not allow any other addendums or contingencies to be attached.

Before a contract can be con­sidered for acceptance by HUD, the broker must certify with our office. This is accomplished by

the broker completing two forms and providing the requested docu­mentation to verify that the agency is licensed by the State and is doing business under the name supplied to HUD. All lock­box keys, broker information reports on property availability, and correspondence concerning regulations and guidelines, will be issued directly to the broker. All offers submitted to HUD must be signed by the broker or an ~utho­rized individual of their agency. HUD does not require the names of these individuals, only that he/she be designated by the bro­ker.

Following is an explanation of HUD's new policy concerning the Earnest Deposit Certification. This policy is effective with all off erS received on or after November 21, 1994.

BUD'S EARNEST DEPOSIT POLICY THIS POLICY IS EFFECTIVE: NOVEMBER 21. 1994

1. A $500 deposit is required with each off er. Funds must be in the form of a cashier's check, certified check, or money order with no termination date or cancellation provision. Personal checks are not acceptable. The agent must be in receipt of the funds at the time the offer is submitted to HUD and must deposit the funds in the broker's trust account within twenty-four hours of receipt. The agent is responsible for ensur­ing the funds are transferred to the designated closing agent within five days of contract acceptance.

2. All owner-occupants who are applying for financing must submit the form entitled "LOAN APPLICA­TION CERTIFICATION" to the loan officer within seven calendar days of their offer being accepted. It is the agent's responsibility to ensure that the contract is mailed the same day if they are faxing in offers. No exceptions will be made for contracts received late.

3. All owner-occupants must be prequalified prior to submitting an offer to purchase. 4. The agent and purchaser(s) must certify on the fonn "EARNEST DEPOSIT CERTIFICATION" that

HUD's earnest deposit forfeiture policy has been explained and that prequalification has been completed.

FORFEITURE POLICY

INVESTORS: 100 percent of the deposit will be forfeited for failure to close, regardless of the reason.

OWNER-OCCUPANTS: Properties listed for sale in HUD's newspaper advertisement: (Continued on page 5)

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(Continued from page 4)

Nor ELIGIBLE FOR FHA INSURANCE: 100 percent of the deposit will be forfeited for failure to close, regardless of the reason.

ELIGIBLE FOR FHA INSURANCE: 100 percent of the deposit will be forfeited if: 1. The sale does not close and loan application was not made within seven calendar days from the

date of contract acceptance. This date is based on the date of bid opening, not on the date the con­tract is received when the offer is faxed to HUD.

2. Purchaser(s) are unable to obtain financing for any reason other than unacceptable credit. An example of any other reason would include, but is not limited to: insufficient funds to close or not eligible for amount of mortgage requested, as this information would be disclosed during the pre­qualification process.

DISCIPLINARY ACTIONS TAKEN BY THE REAL ESTATE COMMISSION

(Does Not Include Cases on Appeal)

Keith K. Anderson vs. John M. Weddle, broker. License revoked. (Violated 81-885.24 (29) by demon­strating negligence, incompetency, and unworthiness.) June 14, 1994

Kimball & Associates .... , Bill Kimball vs. Diane L. Richters, sales­person. Stipulation and Consent Order of Censure. (Violated 81-885 .24(7) by representing, or attempting to represent, a real estate broker, other than her employing bro­ker, without the express knowledge and consent of the employer; and 81-885.24(29) by demonstrating unwor­thiness to act as a salesperson.) September 28, 1994

Real Estate Commission vs. Gary Thomas Thompson, broker. Stipulation and Consent Order. License suspended 60 days, with entire 60 days stayed and served on probation, plus additional 3-hours of trust account education. (Violated Section 81-885.24(26) by violating a rule or regulation adopted and pro­mulgated by the Comnlission in the interest of the public inconsistent with. the Nebraska Real Estate License Act; title 299, NAC 5-003 .13 by failing to deposit funds received as an earnest money deposit within 48 hours or before the end of the next

banking day after an offer is accept- proper accounting system as evi­ed; Title 299 NAC 3-006 by failing to denced by his failure· to balance the deposit an earnest money payment check register after each entry, his into his trust account within 48 hours failure to date all receipts and dis­or before the end of the next banking bursements, his failure to include day after an offer is accepted, and check numbers on all disbursements, then forthwith transferring such his failure to have a written bank rec­earnest money deposit to the listing onciliation each month showing all broker; and 81-885.24(29) by outstanding checks,_ his failure to demonstrating negligence, incompe- post checks daily, and his failure to tency, or unworthiness to act as the keep ledgers separate. from the files.) broker when he failed to maintain a September 28, 1994

ATTENTION! Endorsement to Commission-Offered E & 0 Insurance to Meet Iowa's Equivalency Requirements Now Available

Williams Underwriting has informed us that St. Paul Fire and Marine will offer an endorsement to the State Plan for Nebraska licensees enrolled in the State Plan to be able to qualify for equivalent insurance in Iowa.:

Rather than having to pay for the Nebraska Plan ($75.00) and the Iowa Plan ($103.00), St Paul will offer an endorsement to "buy-down" the $1,000 deductible in the Nebraska Plan to zero, (the requirement in the Iowa Plan). The cost for the endorsement is $25.00 for the 1995 calendar year and only awlies to Iowa egpiyalency.

Requests for the endorsement nn111 be made, in writing, directly to Williams Underwriting Group, Inc., P.O. Box 769, 111 West Chestnut Street, Jeffersonville, Indiana 47131-0769.

Requests must include the licensee's name, as it appears on his/her Iowa license, his/her Iowa real estate number, his/her Nebraska real estate I.D. number and a check In the amount of $25.00.

Any questions regarding this endorsement and the procedures involved should be referred to Valerie Sieg at 800-222-4035.

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Seller Property Condition Disclosure Statements Required Effective January 1, 1995

Effective January 1, 1995, receipt of the disclosure state­Nebraska law will require each ment. seller of residential real property The law sets out that the seller in Nebraska to provide the pur- or any person representing a prin­chaser with a written and signed cipal in the transaction shall not disclosure statement · indicating be liable for any error, inaccuracy the real property's condition. This or omission of any information in law is a result of the passage of the disclosure statement if the LB-642. LB-642 was passed by error, inaccuracy or omission was the Legislature and approved by not within the personal knowledge Governor Nelson in the Spring of of the seller or their representa-1994. It has been codified as tive. A seller may indicate that Section 76-2,120 in Nebraska information required in the disclo­Statutes. sure statement is unknown and

Residential real property means remain in compliance with the real property on which no fewer law. than one or more than four The law also sets out that the dwelling units are located. transfer of an interest in residential

Seller under the new law means real property subject to the law may the owner of real property who not be invalidated solely because of

or to a beneficiary of a deed of trust by a trustor or suc­cessor in interest;

( 4) by a mortgagee, a beneficiary under ·a deed of trust, or a sell~r under a land contract who has acquired the real property at a sale conducted pursuant to a power of sale under a deed of trust, at a sale pursuant to a court­ordered foreclosure, or by a deed in lieu of foreclosure;

(5) by a fiduciary in the c9urse of the administration of a dece­dent's estate, guardianship, conservatorship, or trust except when the fiduciary is also the occupant or was an occupant of one of tlie dwelling units being sold;

( 6) from one co-owner to one or more other co-owners;

sells or attempts to sell residential failure to comply with this statute. real property. The definition of If a conveyance of real property sell includes a lease with option to is not made in compliance with purchase on residential real prop- the law, the purchaser has a cause erty. Seller includes an individ- of action against the seller through ual, partnership, limited liability the court system and may recover company, corporation or trust. actual damages, court costs and

The law also applies to the sale reasonable attorney's fees. The S) cause of action is in addition to of one to four unit dwellings

(7) made to a spouse or to a per­son or persons in the lineal line of consanguinity of one or more of the transferors; between spouses resulting from a decree of dissolution

which are sold coupled with a any other cause of action available ground lease, i.e. a lease for a par- to the purchaser and must be com­cel of land on which one to four menced within one year after the

residential dwelling units have been constructed.

The seller is required to deliver the property condition disclosure statement to the purchaser, or the agent of the purchaser, on or before the effective date of any contract entered into on or after January 1, 1995, which binds the purchaser to purchase the real property. It also requires the pur­chaser to acknowledge, in writing,

purchaser takes possession or after the conveyance of the real property, whichever occurs first.

There are certain specified exemptions set forth in the law. They are transfers:

( 1) pursuant to a court order, a foreclosure sale, or a sale by a trustee under a power of sale in a deed of trust;

(2) by a trustee in bankruptcy; (3) to a mortgagee by a mort­

gagor or successor in interest

6

of marriage or a decree of legal separation or from a property settlement agree­ment incidental to such a decree;

(9) pursuant to a merger, consol­idation, sale, or transfer of assets of a corporation pur­suant to a plan of merger or consolidation filed with the Secretary of State; or

(10) to or from any governmental entity.

The disclosure statement, pro­mulgated by Rule and Regulation

(Continued on page 7))

(Continued from page 6)

by the Nebraska Real Estate Commission, sets out, by law, that the information contained in the disclosure statement is the condi­tion of the real property as known by the seller on the date of disclo­sure and that the statement is not a warranty of any kind by the seller or any agent representing a princi­pal in the transaction. It also sets out that the disclosure statement should not be accepted as a substi­tute for any inspection or warran­ty the purchaser may wish to obtain. It also sets out that even though not a warranty the pur­chaser may rely on the informa­tion in deciding whether and on what terms to purchase the real property.

The disclosure statement includes disclosures regarding the condition of appliances included in the sale; the condition of the electrical, heating and cooling, water, and sewer systems; the condition of the improvements on tfte real property and any defects that materially affect the value;

hazardous conditions, including they should consult with a private­environmental hazards; title con- ly retained attorney. The Real dition; and whether utility con- Estate Commission cannot pro­nections are public, private or vide legal advice. community.

The Real Estate Commission has distributed the actual disclo­sure statement to all licensed real estate brokers, to attorneys and to known printers of these types of documents. Copies of the disclo­sure statement shall be available now, or in the near future, at busi­ness form outlets, throughout the State.

While the Nebraska Real Estate Commission is responsible for developing the disclosure state­ment and to promulgate Rules and Regulations to carry out the provi­sions of the law, the Commission does not have any authority in the enforcement of the law. Violations of Neb.Rev.Stat. 76-2, 120 are handled through the appropriate court or by other legal remedies. If citizens need advice or guidance on the provisions of the law or advice or guidance on if a cause of action could be filed,

CANCER HONORS FORMER DIRECTOR (Editor's Note: This article is reprinted

with permission from the October 27,1994 edition of The Uncoln Star. Mr. Quinlan served as Director of the Nebraska Real Esta.te Commission from 1965 through 1990. It is our pleasure to offer our congratulations to Paul for receiving this most prestigious honor.)

Paul Quinlan, 76, 9f Lincoln has been named the top volunteer in the nation by the American Cancer Society.

He is the first Nebraskan to receive the honor, which is pre-

sented each year to one of the society's more than 2 million vol­unteers.

Quinlan, who began his work with the cancer society in the early 1960s, said he was accepting the award on behalf of all of the society's hard-working volun­teers.

He said he is proud of the $400 million the society raises annually "and plows into cancer control."

Medical research is making

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gradual inroads in fighting the disease, Quinlan said.

Past recipients of the award include Eleanor Roosevelt and Ann Landers.

Quinlan, the retired director of the Nebraska Real Estate Commission, helped organize the society's Lancaster County unit and later served as its president. He also served as chairman of the Nebraska Division of the society.

Future Real Estate Examinations The following is the schedule of the

dates on which the real estate licensing examinations are administered in Ne­braska, and the deadline dates for filing of broker and salesperson original ap­plications, retake applications, proof of education and examination cancella­tion requests for the applicable Exami­nation Date.

Examinations for both salesperson and broker applicants are administered eleven times a year as set out on this schedule. The examination is adminis-

tered in Lincoln, North Platte and Omaha on each Examination Date and in Scottsbluff on only the January, May and September Examination Dates. All applicants for a particular examination will receive notice of the time and place of the examination approximately one week prior to that Examination Date.

Applications, proof of education, and cancellation requests are due on the date of the deadline!

The Examination Date and the dead­lines are subject to change by order of

the Nebraska Real Estate Commission. Affected applicants will be notified of any changes in a timely manner.

Applications and other pertinent in­formation regarding the real estate li­censing and examination process may be obtained 'from the Nebraska Real Estate Commission, P. 0. Box 94667, Lincoln NE 68509-4667. Telephone Number: (402) 471-2004. IDD users may use the Nebraska Relay System at (800) 83-7352.

Real Estate Examination Schedule 1995 Bmka:

Elamiaatioll Date ildllulll Amtlk:adoll

January 21, 1995 December 6, 1994 February 18, 1995 January 3, 1995 March 18, 1995 January 31, 1995 April 15, 1995 February 28, 1995 May20, 1995 April 4, 1995 June 17, 1995 May 2, 1995

Nebraska Real Estate Commission P.O. Box 94667 Lincoln, Nebraska 68509-4667

Salawston Qdaimll AnDlicatlon

December 19, 1994 January 17, 1995

February 13, 1995 March 13, 1995 April 17, 1995 May 15, 1995

Edgqtion AllRet&ke

DmdliDc Agpllcations

January 3, 1995 January 6, 1995 January 30, 1995 February 3, 1995 February 27, 1995 March 3, 1995 March 27, 1995 March 31, 1995

May l, 1995 May 5, 1995 May 30, 1995 June2, 1995

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Caumla&loD DadUDc

January 10~ 1995 February 7, 1995 March 7, 1995 April 4, 1995 May9, 1995 June 6, 1995 4

Bulk Rate U.S. Postage

PAID Pennit No. 212

Lincoln, NE