REPOST: Ex crims can apply for a real estate license

In Australia, some ex-convicts are given the chance to start a new life not by sending them in some government-sponsored livelihood projects, but by allowing them to apply for a real estate license and become bona fide brokers.

REIQ generic house sale
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WE trust them with the keys to our homes but murder, robbery, fraud, rioting, bribery and forcible entry are a just a few of the crimes a person can commit and still become a real estate agent.


While plans are underway to introduce new legislation to regulate training within the industry, it has been revealed a person can still sell property in Queensland even after committing serious crimes.


People who have committed a crime with a maximum sentence of more than three years in jail can be automatically refused a real estate licence or salesperson certificate.


But offences like computer hacking, affray and forcible entry have small maximum sentences, meaning a person can be convicted of these crimes and apply for the licence within the week.


Even murderers, fraudsters and armed robbers can apply to become agents if they wait long enough. The automatic dismissal overlooks any offence, no matter how severe, if the person was convicted more than five years ago.


Anyone guilty of a range of other offences can apply for their licence not long after being convicted.


All agents and salespeople in the industry must undergo a criminal history check before they can sell real estate but the check only takes into account certain crimes and overlooks crimes with smaller sentences.



A person can still become a real estate agent in
Queensland even after committing serious crimes.
Image source: news.com.au


Real estate consumer advocate and host of Selling Houses Australia Andrew Winter called on the Office of Fair Trading needed to review its policies for the protection of the public.


"From the consumer point of view a licensed real estate agent should be a law-abiding citizen," he said.


"They should not be somebody who has ever been imprisoned for anything. Because what they're dealing with is big sums of money, even if they're handling it indirectly through a property, and they're working with trust accounts."


Mr Winter said the legislation needed to be changed for the protection of both consumers and people working in the industry.



"Queensland still has the most stupid property laws where agents are allowed to write contracts," he said.


"They're not lawyers, they're real estate agents and if you do a criminal history check it should be a proper one so that consumers are safe."


"It's also for the protect of real estate agents themselves and for the rookie and trainees to know to have licence you have been checked out thoroughly."


In the 2012-13 financial year the Office of Fair Trading received 1067 complaints about real state agents. One of the top reasons given for these complaints were allegations of failure to act honestly, fairly or professionally.


Office of Fair Trading Industry Licensing Unit executive manager Tamika Millmore said the office performed a thorough check on anyone applying to sell property.


"The criminal history check is done through Queensland Police," she said.


"We have a list of certain offences that Queensland Police then inform us about. We don't find out someone's full criminal history and if they've committed a crime that is not on our list."


Ms Millmore said there were extra safeguards after the automatic refusal system to protect consumers from serious criminals.


"We also have discretionary powers," she said.


"When we conduct the criminal history check we still consider the circumstances and nature of the crimes committed before we allow a person to obtain their licence.


"We also are aware of all breaches of the Property Agents and Motor Dealers act so we can be aware of other offences even if there is not a conviction recorded against a person."


Real Estate Institute of Queensland managing director and CEO Anton Kardash said the body had no problem with how criminal checks worked.


"The current requirements for police checks seem to be adequate however National Licensing seems to be weakening the current arrangements."


Crimes with a maximum sentence less than three years:

• Rioting
• Forcible Entry
• Affray
• Bribery
• Computer Hacking
• Threatening Violence
• Disclosure of Official Secrets
• Influencing Voting
• Observing or Recording in Breach of Privacy

Peter Vekselman is a real estate coach who has been in the business for more than a decade. Learn more about his professional background by visiting this website.

Renovations that add value to your property.

Making a house a home is the goal of every homeowner. Some spend a lifetime making improvements and installing upgrades, but in terms of resale value, which home renovations are actually worth in the investment?

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The kitchen and bathrooms should be on top of the list when considering home improvement. Kitchens are the common gathering place for families and home buyers usually give this room special attention. Consider upgrading appliances and countertops. If the kitchen is adjacent to a den, consider knocking down a wall. Similarly, bathrooms are also on the spotlight during open house viewings. You can never go wrong by replacing the toilet and sink with newer ones. Tubs, on the other hand, can be more expensive and some settle for a simple reglazing.

 

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Upgrades for boosting the house’s energy efficiency are huge attractions among potential buyers. They want to hear that they will be cutting gas and electricity costs when they move to your house. In keeping with the bathroom and kitchen upgrades, you can choose low-flow water fixtures that save water. Consider triple-panning your windows because this keeps the heat inside and prevents outside elements and ravaging weather from seeping in. This can have a tremendous impact on the cost of maintaining airconditioning and heating systems.

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Home renovations are costly. While you should consider your personal tastes and needs, you also have to consider the return on investments on the upgrades.

Peter Vekselman is a Georgia-based real estate consultant whose market expertise aids buyers and sellers land the best real estate deals. More information and pictures on value-adding homes can be found on this page.

REPOST: Should you sell a house under the radar?

Should you sell a home outside of common listings of homes for sale? Bankrate.com’s Marcie Geffner discusses the pros and cons of pocket listings. This article can be accessed at Yahoo! Finance.

Pocket listings might be the hottest controversy in real estate today. That's because many home sellers are attracted to the perceived benefits of selling a house outside of the brokers' multiple-listing service, or MLS. But the practice has some significant downsides for sellers as well.

Traditionally, the term "pocket listing" referred to a situation in which a property seller and real estate broker signed a listing agreement that allowed the broker to offer the property for sale, but keep the information out of the MLS and, figuratively, keep the information in his or her pocket. Nowadays, the term is sometimes used more broadly to refer to properties that are offered for sale without a listing agreement or use of the MLS.

Privacy or price?

A pocket listing can be attractive to sellers because it potentially offers greater privacy, convenience and flexibility than an MLS listing, according to Alexander Clark, an agent at Zephyr Real Estate in San Francisco, and founder of PocketListings.net, a website that promotes pocket listings.

"Most of the people who go the pocket listing route do so because of privacy. That's why a lot of movie stars, wealthy people and high-profile people sell their property without sharing it on the multiple-listing service," Clark says.

A pocket listing also can allow sellers time to repair and stage their property, resolve personal concerns they may have about selling their home and even price-test the market before they commit to a sale, explains Wendy Furth, a Realtor and assistant manager at Rodeo Realty in Calabasas, Calif.

"One reason a seller might want to stay as a pocket is because they figure (the broker) can just fish for buyers. It's perceived as being no-muss, no-fuss, no for-sale sign, no open houses, just find a buyer," she says.

The main reason for not doing a pocket listing

The downside -- and it's a big one -- is that a pocket listing loses exposure to other real estate brokers, and oftentimes the public. MLS exposure can mean multiple offers, a bidding war, a higher price, more attractive terms or a buyer who's better positioned to close the deal.

"The more people who see the house, the higher the price will go," Furth says. "By having it be a pocket listing, no one will know anything about it. That's a great way to not have a huge audience for the property."

Commission savings

Still, sellers might be tempted by the lower commission brokers typically accept for a pocket listing. Rather than 5 percent or 6 percent of the sale price, the seller might pay something more like 4 percent. However, remember that commissions are always negotiable.

A lower commission for a pocket listing might seem like a considerable saving for the seller, but it's the broker who stands to reap more benefit, says Douglas R. Miller, an attorney and executive director of Consumer Advocates in American Real Estate, a nonprofit group in Navarre, Minn., that seeks to educate consumers about conflicts of interest in real estate.

That's because brokers typically split commissions between the seller's side and the buyer's side of the transaction. A pocket listing means the seller's broker is more likely to retain the full amount, rather than a portion. Sure, 4 percent is less than 5 percent or 6 percent, but it's also more than 2 percent or 3 percent.

Miller takes an especially dim view of pocket listings, which he describes as "self-serving," "self-dealing" and "one of the worst business practices in residential real estate." He says these deals don't work out financially for sellers because what's saved in a lower commission might well be lost -- and then some -- in a lower price.

Is anyone looking?

Miller disagrees with the notion, espoused by some brokers, that other marketing strategies can make up for keeping a listing out of the MLS and even nab a higher price.

"Social media? Exclusive website? Who cares, if no one is looking in those places to buy homes? They aren't," he says. "The first thing sellers should be demanding of their broker is a marketing plan that includes not only the MLS, but also the top buyer-frequented national websites."

Assess the broker's motives

The bottom line is that homeowners should be wary of any hard push to offer their home as a pocket listing, potentially giving one broker control over both sides of the transaction and a good shot at what's known in the real estate business as a "double end" or "double pop" commission.

"If someone is coming up to you to try to get a pocket listing, you have to ask, 'What are your intentions? Are you going to offer compensation, commission, to another agent if they bring a buyer? Are we going to sign a listing agreement?'" Clark says. "If they want to say, 'If I find you a buyer, will you pay me this amount and not sign anything?' Then watch out."

With decades of experience, Peter Vekselman recommends having a good mentor in order to flourish in the real estate industry. Visit this webpage to know more about the real estate investor's insights.

Real estate tips for entrepreneurs

Many factors can affect the success of a business. For this reason, looking into the forces that affect the company, and determining how they may affect the performance of the enterprise as a whole are necessary. An article at Entrepreneur.com lists down the things that any entrepreneur should examine in real estate, a commonly ignored factor that can actually heavily influence the probability of success even from the get-go.

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Location

Where the business is built determines the potential number of customers who will come to pay for the product or service. Before completing a real estate transaction, the buyer should know how many people pass by the street every day, as this also determines the number of potential customers.

Lease

Entrepreneurs are advised to sign a longer lease if they can afford it. While this takes a bigger chunk off the capital, it can save the owner money in the long run. This is because the land becomes immune to unstable market forces like inflation.

Rent

Entrepreneurs must also rent twice the space they need if they can afford it. This allows a lot of room for faster growth and expansion in the future.

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Windows

When constructing the office or business building, it pays to invest in good ventilation and lighting. Not only can this save the business money, it can also improve the mood and performance of employees.

Purchase

For entrepreneurs who plan to build a store or restaurant, purchasing the land or building is better than renting it. This helps to avoid landlords who increase the rent depending on the success of one’s business.

Real estate is not a trivial matter. After all, success may be dictated largely by one’s initial choices.

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As a real estate consultant and entrepreneur, Peter Vekselman knows what’s best for businesses especially in matters related to location, building, and land. Follow this Twitter page for more updates on real estate and entrepreneurship.

Next generation buyers: Young and savvy

The young is not so carefree after all.

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A survey noted that working a second job and moving in with the parents are some of the ways that Generations X and Y are willing to do to save for a home. Results of the study conducted by Better Homes and Gardens Real Estate among 18 to 35 year old Americans revealed that the respondents have become increasingly knowledgeable about homeownership due to the increased media coverage brought about by the housing crisis. The survey also noted that the young is not deterred from buying a home and believes that owning one is a key indicator of success. Furthermore, these future homeowners are willing to do their research and save in ways that may surprise those who believe the values of Gen X and Y have strayed from those of their elders.

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As it turns out, the Millennial Generation is not only optimistic about their employment opportunities, they are also knowledgeable, responsible, and savvy when it comes to real estate—characteristics that any property buyer or seller should embrace.

Every generation faces some economic hardships that define the way they see their financial future. The baby boomers faced an oil shortage crisis back in the 1970s. For Gen X and Y, it was the collapse of the housing sector more than five years ago. And the crisis led the Millennial Generation to believe that it takes a lot of planning and research to make a reliable home purchase.

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Visit this website for more real estate investment tips from seasoned investor Peter Vekselman.