The Michigan Association of REALTORS® recently launched a three-part short sale survey. Over 1,500 REALTORS® participated in the first part of the survey, offering their insights on the short sale process from the perspective of a seller. Part 2 concentrates on the expectations, frustrations, and rationale of a buyer and the many obstacles that may encumber the short sale purchase process. MAR’s continued hope for the survey is to gather and quantify insights that we can pass along to you, your colleagues and other industry members. Thank you for your continued participation.
Please take a few moments to complete part 2 of the MAR Short Sale Survey. Survey closes on Friday, February 19th.
Take part 2 of the short sale survey
http://www.surveymonkey.com/s/shortsales_part2
Every year, the Michigan Association of REALTORS® recognizes members and affiliates who contribute to RPAC through a special recognition luncheon. This year, the luncheon was held during the Achieve conference in Detroit, where members from around the state gather to celebrate the RPAC accomplishments that their local associations achieved in 2009. Jim Fase, 2009 RPAC Trustee Chair, and Mary Rockwell, 2010 RPAC Vice-Chair, congratulated the award recipients. The list of winners include:
Highest Member Participation, Small Board
Winner: Saginaw Board of REALTORS®
Highest Member Participation, Medium Board
Winner: West Michigan Lakeshore Association of REALTORS®
Highest Member Participation, Large Board
Winner: Grand Rapids Association of REALTORS®
Most Improved, Small Board
Winner: Hillsdale County Board of REALTORS®
Most Improved, Medium Board
Winner: Greater Kalamazoo Association of REALTORS®
Most Improved, Large Board
Winner: Western Wayne Oakland County Association of REALTORS®
Greatest Over Goal, Small Board
Winner: Jackson Area Association of REALTORS®
Greatest Over Goal, Medium Board
Winner: Traverse Area Association of REALTORS®
Greatest Over Goal, Large Board
Winner: Grand Rapids Association of REALTORS®
Most Dollars Contributed of any Association
Winner: Western Wayne Oakland County Association of REALTORS®
Most Major Donors
Winner: Grand Rapids Association of REALTORS®
Finally, there were 24 local associations that exceeded their 2009 RPAC goal.
It's that time of the year; Tax Season! The IRS offers a variety of helpful forms, and documents to help you in this busy time of year. Below are resources on choosing a tax preparer, the First Time Homebuyer Credit forms, and how to receive an immediate tax refund for donating to Haiti.
Tax Preparers
Many taxpayers rely on a tax professional or tax software to file their returns. Most return preparers are professional, honest and provide excellent service to their clients, but some engage in fraud and other illegal activities.
Fact Sheet 2010-3 How to Choose a Tax Return Preparer and Avoid Preparer Fraud, gives helpful hints for choosing a return preparer - what to look for, and what to avoid.
First Time Homebuyer Credit
The new
Form 5405 that will be used to claim the First Time Homebuyer Credit has been released, and is available on the IRS website. The
Instructions for the form provide information on the various forms of the credit that are available and the documentation that must be attached with the return when the credit is being claimed.
Publication 4819 is a great reference that you can provide clients with important information concerning the First-Time homebuyer Credit.
Donating to Haiti
People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season. Cash contributions made between January 12 and February 28 specifically for the relief of victims in areas affected by the January 12 earthquake in Haiti may be claimed on either 2009 or 2010 returns. See
News Release IR-2010-012 for more information.
The following Q&A was authored by Brian Westrin, Manager of Legal Affairs, MAR.
You may recall reading in past MAR publications that in April of 2008 Attorney General Mike Cox issued a very helpful opinion aimed specifically at clarifying the proper application of Michigan Transfer Tax exemption “t”. While this particular exemption has been on the books since the Act was signed into law, the opinion by Attorney General Cox gave heft and some much needed clarity regarding its usefulness in the current marketplace. With a struggling marketplace and declining values hitting Michigan hard, exemption “t” sets forth that a seller may seek the exemption from paying the state transfer tax if all of the following criteria are met:
- The property must have been occupied as a principle residence, classified as homestead property;
- The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
- The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer. The Attorney General noted that the exemption was certainly more applicable to transactions in the current marketplace. However, there are certainly dangers inherent in claiming the exemption without careful consideration of meeting all the qualifications. A claim for the exemption that fails to meet all three criteria above could bring a penalty equal to 20% of the tax assessed in addition to the tax due.
While the criteria may seem straightforward enough, many questions from members have shown that grey areas do exist. Look for your March issue of the REALTOR® magazine where MAR Manager of Legal Affairs Brian Westrin takes an in depth look at the criteria and their practical application.
Revised Truth in Lending Act disclosure requirements took effect on July 30, 2009.
Are you familiar with the rule amending Regulation Z of the Truth in Lending Act (TILA)? While these rules apply to lenders, you should understand the basics so you can advise customers of potential delays under the new procedures, according to the National Association of REALTORS®.
Under the rule, lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Regulation Z).
Here are the key highlights of the change:
• The new requirements apply to all mortgages secured by a borrower’s home, including primary and secondary homes and refinancings. Investor loans continue to be exempt.
• A lender must give a good faith estimate of mortgage loan costs within three business days after the consumer applies for a loan.
• The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.
• The closing may not take place until expiration of a seven-day waiting period after the consumer receives the early disclosure.
• If the annual percentage rate (APR) increases by more then 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional three business days before closing the loan.
• The APR includes not only the interest rate but also certain other costs related to settlement so it will be important for any fees that affect the APR to be as accurate as possible and provided as early as possible, to minimize the need for a corrected TILA disclosure.
• The consumer may modify or waive both waiting periods for a document personal financial emergency, but must receive the disclosures no later then the time of modification or waiver.
To read the Federal Reserve Board Final Rule to go
http://edocket.access.gpo.gov/2009/pdf/e9-11567.pdf
Two new short sales forms have been added to the MAR forms database. The first form is
Short Sale Addendum to Listing Contract and the second form is
Short Sale Addendum to Buy and Sell Agreement.
The language for these forms, prompted by member inquiries, was developed by MAR legal counsel McClelland and Anderson. The forms are also available in the members only legal section on Mirealtors.com.
Any changes, adaptations or usage of the form language other than as developed by individual local associations, broker members, or multiple listing arecues should be reviewed by that entity's legal counsel.