One of the issues has been mentioned...all assets appropriate for trust ownership need to actually be transferred or deeded to the trust.

Ask your attorney about cars...at least in California, it may be easier to leave your cars out of the trust. If your car is owned by your trust and you decide to sell the car, you need to get a clearance from the State Board of Equalization before you can turn the ownership of the vehicle over to your buyer. I had to go through that last year. It is an extra, time consuming step and perhaps joint ownership of autos by husband and wife would be easier.

Ask your attorney about life insurance policies. Who should be the "owner"and who should be the "beneficiary?"

Who should the beneficiary of your retirement plan be?

If you are married, should you set up an A/B Trust? This depends on the size of your estate and whether or not you want to take advantage of the full lifetime exclusion amounts if you are married. Ask your attorney. The amount that passes estate tax exempt between married is unlimited...to others the limit I think is $750,000. Marrieds can pass to their children (heirs) $1.5 million estate tax exempt with a properly executed A/B Trust. After the death of the first spouse, be sure to divide the trust assets appropriately, and do both tax returns. This is an ongoing administrative detail after the demise of the first spouse.

If you change trustees, make sure appropriate notice is made to the beneficiaries of the trust. Ask your attorney.

If you are the trustee of a trust, you have fiduciary duties, whether or not you charge trustee fees.

Elevated basis is a benefit of a trust...and there may be, depending upon the circumstances, capital gains taxes after the demise of the second spouse of an A/B Trust.

I have worked extensively with trusts over the years as a financial planner, as the trustee of 4 trusts, including disposition of trusts after demise, both A/B and regular trusts.

I highly recommend a living trust to those for whom appropriate. Saves time, saves probate fees and probate attorney fees, keeps things private, and allows for quicker disposition of assets.

US-CERT National Cyber Alert System
ST05-006-Recovering from Viruses, Worms, and Trojan Horses

Unfortunately, many users are victims of viruses, worms, or Trojan horses. If your computer gets infected with malicious code, there are steps you can take to recover. 

How do you know your computer is infected?
Unfortunately, there is no particular way to identify that your computer has been infected with malicious code. Some infections may completely destroy files and shut down your computer, while others may only subtly affect your computer's normal operations. Be aware of any unusual or unexpected behaviors. If you are running anti-virus software, it may alert you that it has found malicious code on your computer. The anti-virus software may be able to clean the malicious code automatically, but if it can't, you will need to take additional steps.

What can you do if you are infected?

Minimize the damage - If you are at work and have access to an IT department, contact them immediately. The sooner they can investigate and clean your computer, the less damage to your computer and other computers on the network. If you are on your home computer or a laptop, disconnect your computer from the internet. By removing the internet connection, you prevent an attacker or virus from being able to access your computer and perform tasks such as locating personal data, manipulating or deleting files, or using your computer to attack other computers.

Remove the malicious code - If you have anti-virus software installed on your computer, update the virus definitions (if possible), and perform a manual scan of your entire system. If you do not have anti-virus software, you can purchase it at a local computer store (see Understanding Anti-Virus Software for more information). If the software can't locate and remove the infection, you may need to reinstall your operating system, usually with a system restore disk that is often supplied with a new computer. Note that reinstalling or restoring the operating system typically erases all of your files and any additional software that you have installed on your computer.

How can you reduce the risk of another infection?
Dealing with the presence of malicious code on your computer can be a frustrating experience that can cost you time, money, and data. The following recommendations will build your defense against future infections:

• use and maintain anti-virus software - Anti-virus software recognizes and protects your computer against most known viruses. However, attackers are continually writing new viruses, so it is important to keep your anti-virus software current (see Understanding Anti-Virus Software for more information).
• change your passwords - Your original passwords may have been compromised during the infection, so you should change them. This includes passwords for web sites that may have been cached in your browser. Make the passwords difficult for attackers to guess (see Choosing and Protecting Passwords for more information).
• keep software up to date - Install software patches so that attackers can't take advantage of known problems or vulnerabilities (see Understanding Patches for more information). Many operating systems offer automatic updates. If this option is available, you should enable it.
• install or enable a firewall - Firewalls may be able to prevent some types of infection by blocking malicious traffic before it can enter your computer (see Understanding Firewalls for more information). Some operating systems actually include a firewall, but you need to make sure it is enabled.
• use anti-spyware tools - Spyware is a common source of viruses, but you can minimize the number of infections by using a legitimate program that identifies and removes spyware (see Recognizing and Avoiding Spyware for more information).
• follow good security practices - Take appropriate precautions when using email and web browsers so that you reduce the risk that your actions will trigger an infection (see other US-CERT security tips for more information).

Author: Mindi McDowell

Copyright 2005 Carnegie Mellon University.

A few years ago many associations believed they were getting the strong arm negotiation tactics from Supra, which in many cases, had the "only game in town" when it came to lock boxes. For those of you who were around, you will remember the controversy and disdain for Supra.
 
Getting involved with something as critical to REALTORS® livelihood as lock boxes is risky business. NAR Leadership decided to step to the plate and work towards an alternative, teaming up with SentriLock to create choice in the marketplace and the "REALTOR Lockbox." The success of this venture was by no means guaranteed as there were many obstacles (including patents) to overcome.
 
At the one year mark, SentriLock has over 80,000 lockboxes in service and 26,000 active users in the following associations:
 
Currently, SentriLock has over 80,000 lockboxes in service and 26,000 active users in the following associations:

Iowa City Area Association of REALTORS®
Charleston Trident Association of REALTORS®
Yosemite Gateway Board of REALTORS®
Mariposa County Board of REALTORS® New Bern Board of REALTORS®
Pismo Coast Association of REALTORS® 
Santa Maria Association of REALTORS®
Scenic Coast Association of REALTORS® 
San Luis Obispo Association of REALTORS®
Paso Robles Board of REALTORS®
Atascadero Association of REALTORS®
Casper Board of REALTORS®
Jefferson City Area Association of REALTORS®
Hemet San Jacinto Board of REALTORS®
Hutchinson Board of REALTORS®
Somerset-Lake Cumberland Board of REALTORS®
Southeast Georgia Board of REALTORS®
Outer Banks Association of REALTORS®
Harrisonburg Rockingham Association of REALTORS®
Lake Havasu Association of REALTORS®
Pagosa Springs Area Association of REALTORS®
Metropolitan Indianapolis Board of REALTORS®
Memphis Area Association of REALTORS®
Greater Lakes Association of REALTORS®
Kings County Board of REALTORS®
Pittsburg Board of REALTORS®
Jefferson County Board of REALTORS®
Bloomington-Normal Association of REALTORS®
Missoula County Association of REALTORS®
Randolph County Board of REALTORS®
Lake Martin Area Association of REALTORS®
Wichita Falls Association of REALTORS®
Palestine Association of REALTORS®

Associations in the process of migrating to Sentrilock:

Calaveras County Board of REALTORS®
Brunswick-Glynn County Board of REALTORS®
Imperial Valley Board of REALTORS®
Cullman Association of REALTORS®
REALTORS® Association of York and Adam Counties
Fayette Board of REALTORS®
Siskiyou Association of REALTORS®
Statesboro Board of REALTORS®
Greater El Paso Association of REALTORS®
Topsail Island Association of REALTORS®
Liberty Board of REALTORS®

I was provided with the following from Sentrilock:

>>
Production & Manufacturing
>From a production standpoint, SentriLock is keeping up with association demand and is typically able to install within 90 days of contract signing.
Existing customers can get additional lockboxes within 7-10 working days. The manufacturing center just expanded and added more capacity to raise production levels as needed to meet the growing demand for the REALTORT Lockbox.

Customer Service
SentriLock is also expanding our ever growing customer service center to keep hold times to a minimum and ensure our highly level of customer follow-up is done quickly. We recently implemented a program to assign each association executive a dedicated level 2 support resource to handle any SentriLock related needs. This will ensure top priority handling as well as

Later this year, SentriLock is expected to announce the formation of an official user group. This group will  meet annually to get customer feedback, discuss product development ideas and listen to the needs of associations. Stay tuned!

Outlook
As demand increases SentriLock is well positioned to maintain delivery schedules and ensure product availability moving forward. We continue to listen to the needs of associations and their members to make the REALTORT Lockbox the best lockbox system in the industry.
<<

Saul

Last week the U.S. House of Representatives passed H.R. 29, the "Securely Protect Yourself Against Cyber Trespass Act," dubbed the SPY ACT. The bill was introduced by Congresswoman Mary Bono (R-CA) and cosponsored by Congressman Greg Walden (R-OR). The SPY ACT prohibits practices such as hijacking a consumer's homepage and keystroke logging. Under the SPY ACT the Federal Trade Commission would have the authority to enforce financial penalties for those who knowingly violate the Act. Additionally, the House passed H.R. 744, the "Internet Spyware Protection Act," which would penalize, through fines or prison sentences, violators who use spyware to steal information, damage a computer or commit fraud.

Saul

If you use two computers, you need to designate one as your "Primary Computer." You will have this computer set to sweep the mail from your e-mail account (your POP account at your ISP) every time you hit "send and receive." The other computer should be set to "leave a copy of message on server." Finding the setting to "Leave Mail on Server will vary based on your e-mail software but something like the following should help:

1. Open Outlook
2. Click on Tools
3. From Drop Down Menu, select Services (or Accounts)
4. In Services, click on your Internet e-mail account and select Properties At the top, note the tabs.click on Advanced At the bottom of the box you will see "leave a copy of message on server"
5. Check the box if appropriate.

Saul

The Real Estate Professionals and companies that survive the major changes taking place in this industry are those that can quantify what they do and how they earn their money. You must be able to differentiate yourself from the competition. Real Estate is a "Me Too" business and what you do to list and sell real estate is what REALTORS across the country do to list and sell...so, if you want to avoid declining commissions in a "Me Too" business, you must be able to differentiate in another way. In a "Me Too" business, you cannot differentiate based on the "big things" because everyone does the big things...so you must do many little things your competition does not do. In e-PRO we stress "It's the little things that make a difference."

Look at what consumers, not just real estate consumers, but all consumers are looking for today as they shop for products and services. These items can be referred to as "Consumer Demands" and when you look at what you do, how you do it, and how you market it, bring as many of these driving forces to bear as possible:

Speed - think of fast food and 24 film developing. The quicker you can take care of the administrative aspects of a purchase or sale, the more valuable you are.

Convenience - think of Seven Eleven stores. Also remember that people will often pay a premium for convenience. What do you do for the convenience and comfort of your clients?

Choice - the more alternatives initially, the more consumers like it, but then they narrow it down. Don't we all enjoy choice, from ice cream (31Flavors) to Coffee (Starbucks). What can you do to give your client more alternatives.

Value-added - people like to get MORE than they pay for, this is value added. Real Estate Professionals provide value added services everyday, but few take the time to re-enforce it to their clients. Have you ever cleaned or painted a house for a client after a sale? Helped them move something...or something like that, an extra, that WASN'T in the listing agreement but you did it anyway? That's "Value Added"

Discounts - If it is convenient enough, you will use a coupon. Lots of people look for discounts in everything they do. This doesn't mean you should offer discounts, but you must be aware that for many this is a "driving force" so play to your strengths in your marketing. Discounting is a legitimate way to compete and so if you do not want to compete by discounting, you must offer consumers something else of value.

Quality - Are you willing to pay more for quality? Many people are. What does quality mean in the real estate business? Maybe from a buyer's perspective it would be buying the home for less...and from the seller's prospective, selling the house for more.

Service - think of Nordstrom's which prides itself in its service. Most REALTORS say they provide service without defining it.

Information - this is the age of information! Consumers won't by a toaster or a microwave without first buying a copy of Consumer's Guide", let alone a piece of real estate. Make it quick (speed) and convenient for your clients to access to lots of (choice) information. Information can become knowledge and knowledge rightly applied is a differentiator.

Deliver the above at every available opportunity and your clients will not only love you, they will send you more business.

Saul

Hi everyone,

If you are looking for comprehensive information regarding recent attacks on the industry including challenges to proposed VOW rules, Realtor.org has a number of insightful articles to read. Simply go to Realtor.org and look under the heading: "Why is the Real Estate Industry Under Attack?"

Under the news and opinion area, the article posted here regarding NAR's VOW policy is available. Go to http://www.realtor.org/realtororg.nsf/pages/KleinVOW?OpenDocument to see the article.

Saul

Cyber Security Tip ST05-012 
 
Supplementing Passwords
Passwords are common form of protecting information, but passwords alone may not provide adequate security. For the best protection, look for sites that have additional ways to verify your identity. 

Why aren't passwords sufficient?
Passwords are beneficial as a first layer of protection, but they are susceptible to being guessed or intercepted by attackers. You can increase the effectiveness of your passwords by using tactics such as avoiding passwords that are based on personal information or words found in the dictionary; using a combination of numbers, special characters, and lowercase and capital letters; and not sharing your passwords with anyone else (see Choosing and Protecting Passwords for more information). However, despite your best attempts, an attacker may be able to obtain your password. If there are no additional security measures in place, the attacker may be able to access your personal, financial, or medical information.

What additional levels of security are being used?
Many organizations are beginning to use other forms of verification in addition to passwords. The following practices are becoming more and more common:

two-factor authentication - With two-factor authentication, you use your password in conjunction with an additional piece of information. An attacker who has managed to obtain your password can't do anything without the second component. The theory is similar to requiring two forms of identification or two keys to open a safe deposit box. However, in this case, the second component is commonly a "one use" password that is voided as soon as you use it. Even if an attacker is able to intercept the exchange, he or she will still not be able to gain access because that specific combination will not be valid again.

personal web certificates - Unlike the certificates used to identify web sites (see Understanding Web Site Certificates for more information), personal web certificates are used to identify individual users. A web site that uses personal web certificates relies on these certificates and the authentication process of the corresponding public/private keys to verify that you are who you claim to be (see Understanding Digital Signatures and Understanding Encryption for more information). Because information identifying you is embedded within the certificate, an additional password is unnecessary. However, you should have a password to protect your private key so that attackers can't gain access to your key and represent themselves as you. This process is similar to two-factor authentication, but it differs because the password protecting your private key is used to decrypt the information on your computer and is never sent over the network.

What if you lose your password or certificate?
You may find yourself in a situation where you've forgotten your password or you've reformatted your computer and lost your personal web certificate. Most organizations have specific procedures for giving you access to your information in these situations. In the case of certificates, you may need to request that the organization issue you a new one. In the case of passwords, you may just need a reminder. No matter what happened, the organization needs a way to verify your identity. To do this, many organizations rely on "secret questions."

When you open a new account (email, credit card, etc.), some organizations will prompt you to provide them with the answer to a question. They may ask you this question if you contact them about forgetting your password or you request information about your account over the phone. If your answer matches the answer they have on file, they will assume that they are actually communicating with you. While the theory behind the secret question has merit, the questions commonly used ask for personal information such as mother's maiden name, social security number, date of birth, or pet's name. Because so much personal information is now available online or through other public sources, attackers may be able to discover the answers to these questions without much effort.

Realize that the secret question is really just an additional passwordwhen setting it up, you don't have to supply the actual information as your answer. In fact, when you are asked in advance to provide an answer to this type of question that will be used to confirm your identity, dishonesty may be the best policy. Choose your answer as you would choose any other good password, store it in a secure location, and don't share it with other people (see Choosing and Protecting Passwords for more information).

While the additional security practices do offer you more protection than a password alone, there is no guarantee that they are completely effective. Attackers may still be able to access your information, but increasing the level of security does make it more difficult. Be aware of these practices when choosing a bank, credit card company, or other organization that will have access to your personal information. Don't be afraid to ask what kind of security practices the organization uses.

Link to full article
--------------------------------------------------------------------------------
Authors: Mindi McDowell, Chad Dougherty, Jason Rafail
--------------------------------------------------------------------------------
Copyright 2005 Carnegie Mellon University

This is just an example of the campaign by the media, DOJ, and Congressman Oxley (who wants Banks in real estate) to paint the REALTOR as the villain.

There are similar articles in the Wall Street Journal and other publications as well as news and talk shows.

Now...do you really want to give the data you work so hard to gather in the process of winning listings, to your competition who wants to drive you out of business? Do you think the government should have the right to make the fruit of your labor a regulated "public utility?"

Consumers should have this information is the cry...let them all cry. If you think it is in your best interest as a listing agent to let others use your data, then let them use it. If you don't feel that way, you should have the right to say no.

At the very least you should examine what is going on and be ready for any changes that might come.

Saul

>>
By Jayne O'Donnell and Sue Kirchhoff, USA TODAY Thu Jun 9, 8:00 AM ET
 

Manuel Iraola would be one of the National Association of Realtors' worst
nightmares - if it knew he existed.

In March, Iraola, a former president of Phelps Dodge Industries, launched an
Internet-based real estate company that seems designed to drive traditional
Realtors out of business. His Homekeys Web site is a how-to guide to buying
and selling a home in Florida without paying a traditional broker. (Related:
States' efforts to regulate industry raise concerns)

"Technology has influenced the expectations of consumers," Iraola says.
"People don't need to be driven around in a Cadillac to see properties."

That's one of the big worries of the Realtors-with-a-capital-R. Though it's
hard to find evidence they're struggling at a time of dizzying real estate
prices, traditional real estate agents are uneasy about retaining their
longtime lock on the market.

Their trade group has been in talks with antitrust officials about a new
Realtors policy that would limit the home listings that some low-cost online
brokers could show on their Web sites. Under threat of a     Justice
Department lawsuit, the group agreed last month to drop the policy.

It's unclear if that'll be enough to satisfy antitrust officials, who
continue to field complaints from online brokers about other aspects of
Realtors' Internet policies.

The fight about listings is part of a broader effort by the Justice
Department and the Federal Trade Commission to quash what they call Realtor
attempts in several states to prevent online brokers and other discounters
from competing with them. Federal antitrust enforcers want consumers to have
wider access to home listings and an easier time negotiating fees lower than
the typical 6% commission shared by buyer and seller agents.

"What you have is an industry that is using every tool they have to protect
their commission structure and protect their interests," says Van Davis, CEO
of Foxtons Real Estate, a discount firm. Davis formerly headed Century 21
Real Estate, one of the biggest realty firms.

But others say the Realtors' interests also protect consumers. Allyson
Bernard, an NAR vice president who has a real estate firm in Danbury, Conn.,
says many people underestimate the role of Realtors.

"A lot of the work that a Realtor will do, from getting a transaction from
beginning to end, is done behind the scenes, so people don't realize it,"
Bernard says. "When there's nobody there to watch in between, that's when
things fall apart (and) when it gets dangerous for a consumer."

A thriving industry

The rising scrutiny comes as real estate agents are both thriving and
feeling under siege. NAR membership is up to 1.1 million, from nearly
770,000 four years ago. A white-hot housing market and slower growth in
other parts of the economy have lured people into the field.

The Internet hasn't quite ushered in the revolution in sales and pricing
many predicted - or feared. NAR says its research shows, for example, that
the proportion of people who sell their homes by themselves - 15% - is about
the same as it was 25 years ago. But the Web has still been a major
influence.

Three out of four home buyers use the Internet to search for a house, NAR
says. A 2004 survey of nearly 3,000 NAR members found that nearly 90% used
e-mail to communicate with clients and that 52% had Web sites.

Real estate advertising is also gravitating to the Internet. Borrell
Associates, a media research and consulting firm, predicts a 55% increase
this year from 2004, to $1.8 billion.

The struggle with antitrust enforcers shows that many traditional real
estate agents fear the heightened competition from real estate Web sites and
discount brokers.

"He or she who controls the information controls the process," Iraola says.

As home sales and prices shatter records, some consumers are balking at
paying the traditional commission. Clients in sizzling markets, such as in
South Florida, are asking whether brokers should earn twice as much, in
dollar terms, on a sale as they did five years ago for the same job.

Discounters enjoy gains

In the meantime, discount brokerage firms are posting double-digit gains.
Real estate agents, struggling to find houses for their clients in hot
markets, are lowering fees or working with discounters.

Debbie and Robert Viator sold their Fort Lauderdale home last month through
Homekeys, saving $23,000 in commissions on the $575,000 sale price.

They paid $79 for a one-month subscription to Homekeys' "premium" research
and the $99 fee to post their home in Homekeys' "multiple listing service"
data - the listings Realtors pay to receive and have their properties
included in.

Debbie Viator says she found the experience similar to having a real estate
agent. Homekeys helped the Viators prepare their counter-offers. Staff
attorneys with Homekeys' title company went over their contract before the
closing.

Critics say some online brokers are providing only minimal services to
clients - merely posting a house on a Web site for a fee, for example -
while other real estate agents shoulder the work of showing homes,
processing offers, negotiating paperwork, helping find financing and
handling other details needed to close a sale.

"A lot of the discount brokers are just taking a fee ... and listing in the
(Multiple Listing Service used by Realtors) so other licensed brokers can
see it," says Texas House Rep. Joe Pickett, a licensed Realtor who wrote an
amendment that the Texas Legislature passed. His amendment would require
real estate agents to provide a minimum level of services - instead of just
listing a house on a Web site and leaving consumers to seal the deal.

In some cases, discounters offer enticements to lure people away from the
traditional commission system; hence the fights raging at the state and
local levels.

Some discount realtors say Pickett's legislation is intended to edge out
Web-based brokers. Pickett says he's protecting consumers.

"I just can't understand the fury" about requiring basic services, such as
answering questions or passing an offer on to sellers, Pickett says.

Realtors insist that when you look at the way their industry is evolving,
theirs is one of the most competitive sectors around.

"It's hard to find a more competitive business than this," says Steve Cook,
the Realtor association's vice president for public affairs. "You will meet
... dozens of highly qualified professionals out there eager to work for
you, and every one of them is willing to negotiate."

Some online brokers say the problem is that agents aren't passing their
gains onto clients. Unlike other businesses that have cut prices as
technology has boosted productivity, many Realtors still demand the standard
6% commission.

Cutting commissions

Douglas Searles, a Michigan life insurance company analyst, listed his Grand
Rapids home on ForSaleByOwner.com because he didn't want to pay nearly
$5,000 - 3% of his home's selling price of $160,000 - to a seller's agent to
do what he and his wife could do themselves. (He did offer to pay a buyer's
agent a 3% commission to boost interest in his home and wound up selling his
house to a Virginia-based buyer with an agent in two months.)

Without having to pay a commission to a selling agent, Searles says he had
more flexibility in the price he could accept.

"If more of us start to list on ForSaleByOwner, we can eliminate the
monopoly Realtors hold on home listings, and it will also lower the amount
of money they receive from their commissions, which are currently too high
for the work that they do," Searles says.

Patrick Lashinsky, a vice president of ZipRealty, a full-service discount
brokerage that charges 20% off the traditional fee, says he feels it's
"wrong" that while home prices are surging, "the commission structure hasn't
changed since Eisenhower was president."

By letting potential home buyers weed out properties on the Internet, his
agents have to personally accompany clients to only half as many houses as
traditional firms, Lashinsky says. The company saw its revenue soar from $4
million in 2001 to $62 million in 2004.

"It's like they (NAR) want to go back to before 1980 and say, 'We're not
going to allow the Internet to be allowed as a tool,' " Lashinsky says,
asking how it serves either buyers or sellers not to have a listing as
widely distributed as possible.

Adapting to the Web

Cook counters with the assertion that the industry has evolved well:

"Name me an industry that adapted to the Internet better than this one ...
an industry where you can look at the inventory 24/7 in your bedroom
slippers. Consumers who shop for homes by the Internet are more likely to
look for a real estate professional than those who don't. The reason is that
there is so much information out there."

Iraola, who moved his family 12 times in his career, had plans to retire in
2003 in South Florida and make money buying and selling homes. He felt that
Realtors had cost his former company a fortune by mispricing his homes and
was certain that he could do it better.

After spending two years investigating what other sites were offering and
how technology could distinguish their business, Iraola and a partner, Mario
Villena, launched their own site in Florida in March. On that site, they
say, people can find everything they need to buy or sell a property.

Homekeys offers sellers the chance to save half or up to all of the typical
6% commission. Those who want to sell their home completely on their own can
post a property listing on the site's free "owner listing service" and can
research other listings in their area for free.

Each weekday morning, the 57-year-old Iraola drives his black Mercedes-Benz
E-Class from his home in Coral Gables - one of four homes he owns - to his
fledgling company's headquarters in downtown Miami. He oversees a staff of
16 - brokers and others who deal with clients online or by phone.

He dreams that Homekeys will become a leader in high-quality real estate
service, just as Phelps-Dodge was a leader in mining and chemical
production. But he says he knows what he's up against with the Realtors.

"We're on the vanguard of a revolution," Iraola says. "But I thought the oil
companies were powerful."
<<

States regulate real estate licensees. DOJ, in the name of consumer protection, is playing the bully role again, or are they just plain stupid...or is it part of a larger power grab?

If you think about it, state license law itself is anti competitive because it restricts the number of people who can sell real estate to only those who meet certain requirements as set by the state and states, by restricting the number of people who sell real estate, limit consumers choice.

But real estate license laws were set up to protect consumers, to set standards and consumer expectations, so what is wrong with license law setting minimum standards to protect consumers. In California, no one in their right mind (or no one who truly understands real estate and the liability that goes with selling it) would attempt to do it on their own. I have been a broker and real estate educator for 30 years and as I have not been actively involved in real estate sales since the mid 1990s, the last few properties of my own that I have sold, I did so with the help of a REALTOR.

We always hear from a certain group that consumers dont understand, that they need to be informed, that agents dont do a good job of informing them of their options. So the efforts by states like Texas and Oklahoma and others make sense...but not to DOJ.

Saul

Following from USA Today (June 9, 2005):

>>
States efforts to regulate industry raise concerns By Sue Kirchhoff and Jayne ODonnell, USA TODAY

While the real estate industry is negotiating with federal antitrust enforcers in Washington about its Internet policies, state measures that would strengthen the industrys hand are also raising antitrust concerns.

The National Association of Realtors does not set national policy on agents

fees or minimum service requirements. (Related: Discounters set sights on traditional real estate market)

But states are stepping in with laws and regulations that supporters say will ensure consumers get the expert advice they need but that detractors say limit competition.

Since late March, the Justice Department has:

• Warned the Texas Real Estate Commission not to pass a regulation that would increase service requirements for real estate agents.

Justice and the Federal Trade Commission said the rule could hurt discounters by forcing consumers to buy services they dont want or need.

 

After receiving a letter from Justice and the FTC, the commission held off on its proposed rule. But the Texas Legislature passed an amendment by Rep.

Joe Pickett, a real estate broker, to set tighter requirements for services that real estate professionals must offer.

• Cautioned the Oklahoma Legislature about a similar effort that it considers anti-competitive. The legislation passed anyway in May and was signed this week by Gov. Brad Henry. 
  
•  Sued Kentuckys Real Estate Commission for barring real estate agents from offering inducements such as rebates.
  
• With the FTC, urged the Alabama Senate and the Missouri governor to reject legislation that would restrict real estate agents ability to offer lower-cost services in those states.
  NAR general counsel Laurie Janik says Realtors efforts have consumers best interests at heart.
  The Texas measure requires real estate brokers to deliver offers to their clients and to answer questions about issues related to a transaction, such as possible counteroffers.

In a recent memo to NAR members, Janik defended their right to lobby for legislative and regulatory action they support - even if the effect of such action would be anti-competitive.

If we dont do it before the laws are passed, we cant protect consumers with an antitrust case.

Offer from Realtors
Meanwhile, Realtors have offered to drop a policy that would have let traditional brokers selectively withhold home listings from the Web sites of certain online brokers. That might be enough to end the antitrust dispute.

But the department could insist on a settlement that bars NAR from ever adopting the old policy. Justice could also sue the group if it concludes that other provisions in NARs policies would make it harder for Web-based brokers to compete.

The NARs proposed policy would bar Internet-only brokers from providing the full home-listing information thats available to consumers who meet in person with agents. Online brokers could use only data that could be contained in a classified ad.

That idea is galling to online brokers. It kind of defeats the purpose of having a virtual office, says Robert Butters, an antitrust lawyer at Arnstein & Lehr who represents online brokers.
 
Web brokers have also complained about an NAR provision that would bar Web sites that generate leads for other brokers for a fee from using multiple listing service home information to drum up leads. Realtors rely on this MLS data to sell homes.

Janik says this provision has been placed on the table with Justice.

But Janik says Realtors deserve the right to limit the benefit of the MLS to people who actually list and sell real estate.