Reduce Your Risk Profile
Right now is an appropriate time to discuss risk management. Without a doubt, the market is more challenging than it has been in recent memory. Agents are working harder to close deals, and many of these deals-short sales, foreclosures, and REOs-are placing agents in uncharted territory. Both agents, in their desire to help distressed sellers, and sellers can become snared by scam artists' ploys. That's why "Dirty, Rotten Scoundrels," an article in this issue of California Real Estate magazine, addresses the ways scam artists prey on consumers and agents alike.
On a related topic, this issue examines identity theft, that is, theft of your personal data and that of your clients. As a consequence of your integral role in the real estate transaction, you-and your computer-are a repository for your clients' financial data. This article provides preventive steps that youcan take to avoid identity theft. One such preventive solution is H.R. 1677, a bill strongly supported by C.A.R. and passed by the U.S. House of Representatives in 2007. If passed by the Senate, H.R. 1677 would remove the need for social security numbers to appear on closing documents under FIRPTA (Foreign Investment in Real Property Tax Act). This change would require that the FIRPTA affidavit would go to escrow instead of the buyer. While the seller would still have to provide a social security number, the buyer would not be able to see it and escrow would release it only if the Internal Revenue Service requested the information.
Another article in this issue addresses standard forms that were rarely used two years ago, when the market was marked by multiple offers.
Speaking of standard forms, C.A.R. is responding to members' needs and releasing Forms Advisortm and Forms Tutortm. These new online tools, created by C.A.R.'s subsidiary, Real Estate Business Services Inc., take the guesswork out of deciding which standard forms are needed for various types of real estate transactions. Based upon your input, Forms Advisortm will direct you to the relevant forms for a specific transaction. Both products work with WINForms Online®.
Now-not when the market returns-is an appropriate time to think about risk management.
William E. Brown
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