Come to SCAOR for a FREE RESPA update by R. Scott Rinn, NAR's Senior Policy Representative, Business Issues Government Affairs. Learn the most recent changes to RESPA. This is a non-credit, informational event.

On November 17, 2008, HUD published a new final rule "To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs." The rule mandates use of a new Good Faith Estimate (GFE) and HUD-1 which went into effect on January 1, 2010.

RSVP today at scaorstore.com >

Back by popular demand
SCAOR Sponsors a Trip to the...

Philadelphia Flower Show "PASSPORT TO   THE WORLD"

Friday, March 5, 2010
$43 per person
8 a.m. Departure from SCAOR Office Approx. return to SCAOR at 6 p.m.

Trip Includes: Bus transportation, admission to the show and snacks on the bus.

Join us for this special event. Enjoy the landscapes, gardens and culture of flowers from all around the world.

Register Today at scaorstore.com
or with the attached flyer.

Questions? please contact Crystal@SCAOR.com

Reservation / Payment Deadline
February 11, 2010

Email TracyLee@scaor.com to request a visit, and let us know your top 3 items of interest to be discussed: SentriLock, membership, Ethics, Education, events, MLS...how can SCAOR help you and your office have a successful 2010?

Case #13-2:
Use of Standard Purchase
Contract Form

REALTOR^® A, as the exclusive agent of Seller B, sold a small commercial property to Buyer C, filling in the blanks in the standard purchase contract form. At the time REALTOR^® A presented the contract for Buyer C's signature, he explained that the contract was prepared by attorneys and was commonly used in the area. He suggested that Buyer C have his attorney review it. Buyer C said he would read it over carefully, and if he had any questions he would consult an attorney about it. He subsequently signed the contract, saying it was clear and satisfactory to him.

At the closing, Buyer C professed to having been under some misunderstanding as to language in the contract regarding the date of possession of the property, and following the closing Seller B complained to the Board of REALTORS^® that he had been greatly embarrassed by this circumstance at the closing and felt that REALTOR^® A was at fault in preparing a contract without having an attorney participate in the drafting.

At the hearing, REALTOR^® A reiterated the points that had been made in his written response to the complaint: that the contract he had used was the standard form, prepared by an attorney; that in keeping with Article 13 he had recommended that the buyer have the contract reviewed by his own attorney; and that no other parties present at the closing had found any lack of clarity in the clause in question.

Based upon your understanding of Article 13, what do you think the hearing panel concluded?

Find out in next week's At a Glance!

Earn your required CE hours now while the market is quiet - in class and online now available.  Click here to see this week's and future in class offerings!

Click here for elective online classes.

Thursday, February 25, 2010
1:00 p.m. - 3:00 p.m.
at SCAOR

Are you rusty, know there are shortcuts and helpful tools, don't know how to properly search on InnoVia? Discover the tips and tricks with non credit MLS training by Rick Allamong. NO laptops please.

Register at www.scaorstore.com >
Only 16 seats left.

NEW FHA UNDERWRITING CRITERIA

On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives:

1. Financial soundness of the FHA insurance fund - ensuring that its capital ratio returns above 2 percent,
2. Fulfilling its mission of serving borrowers not adequately served by the private sector, and
3. Facilitating the recovery of the housing industry and the over-all economy.

Read more:
FHA Announces Policy Changes >>
Washington Post article >>

FHA WAIVES 90 DAY RESALE RESTRICTION

Effective February 1, 2010, HUD is temporarily lifting the "90 day resale restriction" rule which prohibits FHA mortgage insurance for a subsequent resale within 90 days of original purchase. The waiver is effective for one year. To protect consumers from potential "flipping" scams, the waiver is limited to sales meeting specific conditions. Click below for details.

HUD Takes Action to Speed Resale of Foreclosed Properties, Press Release >>
Waiver of Requirements of 24 CFR 203.37a(b)(2) >>

NEW RESPA RULES NOW EFFECTIVE

The RESPA changes in effect as of January 1, 2010 include:

• Good Faith Estimate: The new three page GFE, including disclosure of yield spread premiums and the tolerance restrictions, must be used.
• HUD-1: The new three page HUD-1 Settlement Statement, redesigned to look like the GFE with additional cross references and a "cross-walk" chart comparing charges in the GFE with the final charges.

For more on RESPA, read Ronnie REALTOR^®, attend the FREE February 24 Update and visit HUD's website.

Full Listing of Delaware Planning
News & Meetings >>

January 22 Government Affairs Update from Delaware Association of REALTORS^® >>

When there is inclement weather, classes are canceled when Sussex County Government offices are closed. If the Sussex County Government offices are opening late, or imposes liberal leave, class begins as scheduled.

For evening classes, if the weather has improved you should call the SCAOR office at 302-855-2300 before 5 p.m.