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Teresa joined the Commission andhas been active in the Associationsince 1988. She has pursued a tradi-tion of study and service that hasearned the respect and support ofColleagues in the United States andthroughout the world. Teresa attrib-utes her vision and leadership skillsto the environment nurtured byNebraska’s Commission Memberswho have supported four ARELLOPresidents from Nebraska beforethis. She also gives credit as a mentorto Les Tyrrell, the Director of theCommission, who has served as oneof these Past ARELLO Presidents.
Both Janice and Teresa wantNebraskans to know that they can beproud of Nebraska’s regulatoryapproach to real estate licensing.From their perspective, the Commis-sion is true to its mission of protect-ing the public interest, effective in itsapproach, fair in its administrationand resolutions, and poised for thefuture. ARELLO must agree—con-gratulations!
Nebraska Real Estate Commission
COMMISSION COMMENT Winter 2002
Janice Wiebusch Elected to the Board of Directorsand Teresa Hoffman Installed As President of theAssociation of Real Estate License Law Officials
On October 6, 2002, Commis-sioner Janice Wiebusch was installedas a member of the Board ofDirectors representing the CentralDistrict and Teresa Hoffman, DeputyDirector for Education & Licensingof the Nebraska Real Estate Com-mission, was installed as President ofthe Association of Real EstateLicense Law Officials (ARELLO).Their election and installation tookplace during ARELLO’s annual con-ference in Kansas City, Missouri.
ARELLO’s mission is to supportmember jurisdictions in the adminis-tration and enforcement of real estate
On The Inside:Holiday Greetings from
the Commission . . . . . . . .page 2Caution . . . . . . . . . . . . . . . . . .page 3Disciplinary Actions . . . . . . . .page 3Licensee and Applicant
Information on the Website . . . . . . . . . . . . . . .page 4
January 1 Deadline Draws Near . . . . . . . . . . . . . . . . .page 6
Agency Relationship Brochures . . . . . . . . . . . . .page 6
Seller Property Condition Diclosure Forms . . . . . . . .page 6
license laws enacted for the purposeof protecting the public interest.ARELLO is comprised of 72 realestate regulatory jurisdictions whichinclude 52 U.S. states and territories,8 Canadian provinces and territories,2 Caribbean nations, 2 CentralAmerican nations, 1 South Americannation, 3 Asian nations, 2 Africannations and 3 Australian states.ARELLO’s most recent growth hasbeen in Latin America.
The Real Estate Commission hasalways strongly supported participa-tion in ARELLO because it believesthat the opportunities for collectiveapproaches, the consultation withnoted experts and the internationalperspective deliver dividends toNebraska licensees through a moreknowledgeable Commission andStaff.
This election recognizes Janice’sand Teresa’s efforts and achieve-ments in ARELLO and their workwith the Nebraska Real EstateCommission. Janice has been activein the Association since beingappointed to the Commission fiveyears ago. She has been a faithfulattendee at committee and educationsessions and has shared the informa-tion gained with her fellow Com-mission Members. Janice appreciatesthe variety of regulatory approachesdiscussed with ARELLO membersand utilizes this knowledge to assistNebraska in evaluating and deter-mining its own best implementation.
Commission MeetingSchedule
December 11-12 . . . . .LincolnJanuary 29-30 . . . . . . .LincolnMarch 5-6 . . . . . . . . . .LincolnApril 16-17 . . . . . . . . .LincolnMay 28-29 . . . . . . . . .Lincoln
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Official Publication of theNebraska Real Estate Commission
1200 “N” Street, Suite 402P.O. Box 94667
Lincoln, Nebraska 68509-4667(402) 471-2004
www.nrec.state.ne.usEDITOR: Teresa Hoffman
COMMISSION MEMBERS
CHAIRPERSONJohn Gale
Secretary of StateState Capitol
Lincoln, NE 68509(402) 471-2554
PUBLIC Member At LargeJim Strand
2149 Stone Creek Loop SouthLincoln, NE 68512
(402) 420-1010
SALESPERSON Member At LargeMike Poskochil
7141 A St.Lincoln, NE 68510
(402) 432-3089
BROKER MEMBERS
Janice Wiebusch4407 2nd Ave. Ste. B
Kearney, NE 68848-1389(800) 947-8793
Robert Moline4645 Normal Blvd.Lincoln, NE 68506
(402) 434-3700
Harold H. Johnson13915 Gold CircleOmaha, NE 68144
(402) 333-5008
Larry Shepard100 E 6th St.
Fremont, NE 68025(402) 721-9700
DIRECTOR
Les Tyrrell1200 “N” Street, Suite 402
Lincoln, NE 68508(402) 471-2004
The Nebraska Real Estate Commission grantspermission to reprint articles which appear in thisnewsletter on condition that recognition of theiroriginal publication in the Nebraska CommissionComment also appears with the article.
The Nebraska Real Estate Commission oftensolicits articles from outside experts or reprintsarticles with permission. While we feel that thesearticles may offer a broader perspective and will beof interest to the reader, it should be rememberedthat the views expressed are those of the author andnot necessarily those of the Commission.
COMMISSION COMMENTNebraska Real Estate Commission
Printed with soy ink on recycled paper
HOLIDAY MESSAGE
FROM THE COMMISSION
Greetings:On behalf of the members of the Real Estate Commission,
I would like to extend to all of you our heartfelt thanks for yourhard work, dedication, integrity, and professional attitudes in the
performance of your work as real estate salespersons and brokers!It has been a very challenging year, and a time of much concern.
We have faced the aftershock of the September 11, 2001, WorldTrade Center and Pentagon attacks; our national economy and stock
market have experienced loss of growth and value, and loss of con-sumer confidence; our national budget surplus has become a deficit again.Our President is engaged in a serious global conflict with terrorism. A shock-ing number of major corporate leaders have proven to be corrupt and dishon-est, resulting in the loss of many pensions and retirement plans. It has been ahard year nationally. Yet in Nebraska we have shown a strength and resiliencywhich would make Nebraska homestead pioneers proud of us. Our bankingindustry is solid. Our tourism industry has had a good year. Our constructionindustry is busy. And, our real estate industry has had a record year ofsuccess!! It has contributed greatly to the confidence of our communities andthe hope of our citizens for the future as they buy and build new homes.
There have been several changes on the Commission since I was appointedas Secretary of State, and Chairperson of the Real Estate Commission twoyears ago. Since December, 2000, Bob Bell, Paul Landow, Fred Fletcher Jr.,and Joan Nigro have left the Commission, and new Commissioners JimStrand, Larry Shepard, and Mike Poskochil have joined us. I am impressedwith the quality of the members of the Commission I have worked with, andam delighted with the dedication and drive of our current Commission. Weare committed to doing our best to help the real estate industry be the best itcan be, and to assure the public that this industry deserves their trust and con-fidence.
A number of major rule changes were made this year, as well as changesto procedures and documents required to implement the approved ruleamendments. They were serious undertakings and were seriously reviewedand advanced. The new Seller Property Condition Disclosure Statement andthe revisions to the Agency brochures were two substantive changes madefinal this year. Several legislative proposals will be made again in this comingLegislative Session to further our efforts to fine-tune the laws with which wework.
We are proud of the national recognition our Nebraska Real EstateCommission receives. It is held in high esteem, and we will work to maintainthat recognition. Our Director Les Tyrrell and his staff deserve high praise fortheir hard work. Having our Deputy Director Teresa Hoffman as the newPresident of ARELLO is a sign of that respect. We wish her the very best yearpossible!
We send our very warmest wishes to you and your families for the happi-est of Holiday Seasons and for an outstanding New Year in 2003!
John Gale, Chairperson
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Recent inquiries to the Commission Office have indicated that somelicensees may be refraining from showing a buyer/client a particularproperty or properties due to the amount of compensation or “split” thelicensee would receive on the sale.
We would caution licensee’s that such reasoning may not be in thebest interest of your client. Remember the Agency Relationships statutesets out the duties and obligations a licensee has and one of those is: “Topromote the interests of the client with the utmost good faith, loyalty andfidelity...”
Not showing a property or properties solely because of a personalreason e.g. compensation split, personal dislike of listing licensee, etc,may not be promoting the interests of your client. Licensees may wish toconsult legal counsel as to their actions or inactions on behalf of theirclients.
MEET THE REAL ESTATECOMMISSION STAFF
The Real Estate Commission Staffis here to serve the public and thelicensee population. It is our goal tobe helpful and forthright in a courte-ous and professional manner. Wehope that when you contact ouroffice, you always receive useful,accurate information and/or arereferred to the proper authority.
Following is a communicationresource to assist you when contact-ing our office. If the indicated personis unavailable to take your call,please share the purpose for the calland your call will be routed tosomeone else who can help you.
We take pride in having a skilledstaff, if you have comments or sug-gestions as to how we may betterserve you, please contact our office.
COMMUNICATIONS GUIDE
Ask for person indicated if you have questions in
the following areas.
Commission Meeting Information . .Heidi [email protected]
Complaint Procedures . . . . . . . . . . . Terry [email protected]
Continuing Education History orInquiries . . . . . . . . . . . . . . . . . . . . . . . Julie Schuur
Curriculum Design (Education &Instructor Approval) . . . . . . . . . . . Teresa Hoffman
Errors and Omissions InsuranceInquiries . . . . . . . . . . . . . . . . . . . . Teresa Hoffman
License Applications PacketRequests . . . . . . . . . . . . . . . . . . . . . . General Staff
License Applications Process . . . . . . Patti [email protected]
Licensing and Education Requirements . . . . . . . . . . . . . . . . Teresa Hoffman
New Licenses in Process. . . . . . . . . . Patti [email protected]
Specialized Registrations . . . . . . . . . . Monica [email protected]
Transfer of License. . . . . . Melanie [email protected]
Trust Account Matters . . . . . . . . . . . Terry [email protected]
John ClarkPatricia StehlyRon Pierson
WEBSITE: www.nrec.state.ne.us
TELEPHONE NUMBER(402) 471-2004
ADDRESS:Nebraska Real Estate Commission
P.O. Box 94667Lincoln, NE 68509-4667
We’ve Got Mail!!E-mail, that is. The Commission is focusing on technology. Our goal is to
enhance our accessibility and service to the Public and to our Licensee Population. With that in mind, let us call your attention to the addition of e-mail addresses in
the “Communications Guide” located on page 3. If you have any questions, please feel free to contactus by phone, mail, or e-mail, so that we may be of assistance.
We’ve Got Mail!!
2002-012 - Phillip T. & Sandra L.Jennings vs. Victor J. Pelster, sales-person. Stipulation and ConsentOrder. License censured; plus anadditional six (6) hours of continuingeducation, including three (3) hoursin the area of agency and three (3)hours in the area of disclosures, to becompleted by March 24, 2003.[Violated Title 299, Ch. 5-003.04 byfailing to make known, in writing, toany purchaser or seller any interestthe licensee has in the property he isbuying or selling. In a situationwhere a licensee is purchasing prop-
erty for themselves or for an entity inwhich they have an interest, saidwritten disclosure by the licenseeshall take place prior to the Sellerbecoming obligated to sell suchproperty; Ch. 5-003.08 by failing todisclose Respondent was acting inthe dual capacity of agent and princi-pal in a transaction as set forth inNeb. Rev. Stat. § 81-885.24(9) inwriting prior to, but no later than thetime the other principal enters into anagreement to purchase property fromor sell the property to the licensee.
Disciplinary Actions Taken bythe Real Estate Commission
(Does Not Include Cases on Appeal)
(Continued on page 4)
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Issues of ethics and etiquette arecommonly confused, particularlywhen describing the behavior of pro-fessionals. Ethics has to do with fol-lowing the morality of a society orgroup. Etiquette deals with behavingin accordance with prescribed socialstandards. So there’s no question thatissues of ethics and etiquette can bevery similar.
However, do ethical individualsalways follow the best etiquette? No.We can all think of examples ofbrusque, abrasive, ill-manneredpeople who have nevertheless actedmorally. Do people who behave inaccordance with prescribed socialstandards always act ethically? Noagain. Very polite people can actimmorally. The Nazis, as an example,
were very mannered individuals whoemphasized protocol and social stan-dards. Yet their actions wereimmoral.
As professionals, we strive tofollow standards of both ethics andetiquette. Early in our careers, we areintroduced to concepts and models ofprofessional conduct and practice.However, it is assumed that we don’tneed any courses in professional eti-quette, since these matters are largelycommon sense and were taught andmodeled for us in the home and atschool.
It’s this assumption that profes-sionals are familiar with common-sense etiquette that is apparentlygetting licensees into more troublewith their licensing boards than we
might expect. A recent study of com-plaints filed against real estatelicensees provides some surprisinginsights.
The Georgia Real Estate Commis-sion staff conducts from 1,500 to2,000 investigations annually. Yearafter year, Commissioner CharlesClark reports, approximately 50% ofits investigations of complaints resultin a finding of no violation of thelicense law. Approximately 40% ofinvestigations of complaints result inthe discovery of minor technical vio-lations of the law that result in noharm to the public and require onlywarning letters. Only about 10% ofits investigations of complaints resultin a need for the Commission to take
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Website UpdateLicensee and Applicant Information Search
The 50-40-10 Rule(Editor’s Note: The following article is reprinted with permission. While it references input given by the Commissioner
of the Georgia Real Estate Commission we believe that his assessment would hold true in Nebraska as well.)
When you are visiting the RealEstate Commission’s website at:www.nrec.state.ne.us you might wantto take a look at the “Licensee andApplicant Information Search” menuoption. This is a database of Nebraskareal estate licensees and applicants forlicense that can be searched by one ormultiple fields. Here are just a few ofthe searches you can conduct:
• If you know the name of alicensee whose licensing infor-mation you are interested in,simply type in the first and lastname and click on the “Search”button.
• If you would like a list of allApplicants for licensure, move tothe “License Status” field andchoose “Pending Licensure”from the drop-down menuoptions and do not fill-in anyother options.
• If you would like a list of allactive licensees, choose “Active”from the options in the “LicenseStatus” field. You can also searchall “Inactive” and “non-renewed” licensees in the samemanner.
• You can even get a list of alllicensees in a particular town byonly filling out that field.
If you would like to narrow yoursearch, enter data in multiple fields.For example: if you want to know allof the Active Salespersons inLancaster County; you simply enter“Lancaster” in the “County” field,select “Active” from the “LicenseStatus” drop down menu, and select“Salesperson” from the “Profession”drop down menu. You can use as fewor as many fields as you want todefine your search.
Said written disclosure shall besigned by the other principal to thetransaction and a copy of the signeddisclosure shall be maintained in thetransaction file; Ch. 5-003.09 in thatsaid licensee acted for more than oneparty in a transaction without theinformed written consent of allparties involved in the transaction.Informed written consent means thelicensee must obtain the writtenagreement of all said parties as wellas the licensee’s employing brokerprior to acting in such a manner.]
September 25, 20022001-032 - Joseph Valenti vs.
Michael Louis Riedmann, Broker, &Thomas David Myers, Broker.Stipulation & Consent Order.Riedmann: License censured. Myers:Dismissed. [Violated Neb. Rev. Stat.§ 81-885.24(2) by using materialswhich were inaccurate in a materialparticular and misrepresented theservices of the business conducted.]
October 23, 2002
Disciplinary Actions (Cont’d)
(Continued from page 5)
some form of formal disciplinaryaction.
Mr. Clark’s analysis of these com-plaints is incisive. He suggests that “the 50-40-10 numbers tell us that thevast majority of complaints reveal nosubstantive violations of the licenselaw. Why? The vast majority of alllicensees want to be in businesstomorrow.... Even if only minimallycompetent, they are all smart enoughto know that violating the law ordeliberately harming a consumermeans that business is likely to dryup tomorrow. Thus, very, very few ofthem deliberately set out to violatethe law or to harm someone.”
Moreover, he adds, “...Almost allof the people we regulate want to doright. The morally and ethicallycorrupt are the rare exception, not therule. Therefore, almost all of themwill do right, if they know what rightis.... Most violations are the result ofsimple, unintentional error.”
Considering the fact that only 50%of all complaints were investigated,Mr. Clark’s staff decided to deter-mine what actions really caused con-sumers to lodge a complaint. Here iswhat they found:
Most of thecomplaintswere filledwith suchstatementsas:
1. “He
wouldn’t return my telephone calls.” 2. “She didn’t address us as Mr.
and Mrs.” 3. “She stopped by our house
unannounced.” 4. “I don’t know why she waited
two days to present our offer.” 5. “He showed up in a running
suit.” 6. “She talked down to me.” 7. “He was late for every appoint-
ment.” 8. “She turned me over to
someone else for everything.” 9. “He didn’t explain what that
meant.” 10. “She was rude about every-
thing.” 11. “He wasted our time showing
houses that we had no interest in.” 12. “We never could reach her.” 13. “He never seemed to care
about the problem.” In other words, these complaints
were initiated because of a problemwith etiquette–not with a breach ofethics or of law. While instructorsspend countless classroom hoursreviewing licensing law and lecturingon practices and principles of theprofession, Clark concludes, “What
may be more help in reducing thenumber of complaintsis an instructionalmodule on manners,dress, and communica-tion.” (Ironically, fewregulatory agencies
would provide continuingeducation credit for such a
course.) In a telephone call to
a number of otherlicensing boards in myown state of NorthCarolina, regulators notonly agreed that theirexperiences with com-
plaints fits the GeorgiaReal Estate Commission’s50-40-10 profile, manyconcurred that most of thecomplaints are initiated or
deal with matters of rudeness, poormanners and poor communicationrather than with violations of the law.
Assuming this profile is wide-spread among regulatory agencies’complaints, imagine the tremendouswaste of taxpayer dollars and licens-ing board time spent on dealing withmatters of etiquette rather than more“serious” issues of misrepresentationand consumer fraud. Real estatecommissions in the U.S. alone reportover 25,000 complaints a year.
What is the solution? Managers,employers, and educators shouldintegrate discussions of professionalor business etiquette into their staffmeetings and classrooms. punctu-ality, appropriate dress and language,sensitivity to cultural differences inbusiness customs, and listening skillswould be a good place to start. And itwould probably be a good idea toremind everyone not to chew withtheir mouths open and to keep theirelbows off the table, too!
Emily Post, the foremost authorityon etiquette and manners, oncewrote:
... Best Society is not a fel-lowship of the wealthy, nordoes it seek to exclude thosewho are not of exalted birth; butit is an association of gentle-folk, of which good form inspeech, charm of manner,knowledge of the social ameni-ties, and instinctive considera-tion for the feelings of others,are the credentials by whichsociety the world over recog-nizes its chosen members.Etiquette must, if it is to be ofmore than trifling use, includeethics as well as manners.
***This article was written by Dr. Deborah
Long, DREI, GRI, CRS, Ed.D. Dr. Long is areal estate broker and instructor frequentlyasked by professional and regulatory organi-zations to speak on ethics. Long and her find-ings on real estate ethics were the subject ofan article appearing in The Wall StreetJournal; in addition, she has authored severalreal estate career books.
50-40-10 Rule (Cont’d)
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Nebraska Real Estate CommissionPO Box 94667Lincoln, NE 68509-4667
Return Service Requested
PRSRT STDU.S. POSTAGE
PAIDLINCOLN NEPERMIT 212
January 1, 2003 DeadlineDraws Near
Licensees should be mindful of the fact that as of January 1, 2003, use of the revisedSeller Property Condition Disclosure Forms AND the revised Agency Relationships Brochuresbecomes mandatory. The “phasing-in” period will have ceased.
Agency Relationships Brochures
The revised Agency brochures were provided to employing Brokers many months ago in order for them tobe customized, produced, and implemented by this deadline. Please take a moment to look at the brochuresyou will be using (or may already be using). When looking at the cover of the brochure you should see thatthere is one brochure for “Buyers and Sellers” and one for “Tenants and Landlords”. Both of these brochuresshould indicate a use required date of January 1, 2003.
Seller Property Condition Disclosure Forms
The revised Seller Property Condition Disclosure Form was also provided to employing Brokers previouslyin order for them to be produced and implemented by the January 1, 2003 deadline. Please take a moment tolook at the Property Disclosure Form you will be using, at the bottom of Page 2 of 2 in the lower-hand corner,the date should read Effective January 1, 2003. As of that date this form (without modification) must be com-pleted by all sellers of residential real property consisting of 1-4 dwelling units and given to the purchaser ofsuch property prior to the purchaser entering into any contract which would bind the purchaser to purchase.
