Is Your Seller’s Surveillance Putting Them At Risk?
Have you thought about the possible legal considerations regarding the listings you may have that have audio or video devices? Here is a great article written by Wes Bearden that touches on those issues.
Selling a home can be frustrating to homeowners. They’re asked to allow strangers into their home. They may never receive feedback and are left to wonder, “Why didn’t that last buyer bite?” What do anxious sellers do? They get an extra set of ears. Many homeowners have installed security cameras and smart-home devices. These installations can be an ultra high-tech security system or a simple baby monitor, and they all can be abused. A number of notable cases have emerged where sellers listened to a potential buyer’s showing. Sometimes it’s to gain advantage in negotiations, while other times it’s simply to better stage the property. So, can a seller covertly record or monitor a buyer’s showing?
The rules in Texas
Both the Federal Electronic Communications Privacy Act (ECPA) and Section 16.02 of the Texas Penal Code prohibit audio recordings without the consent of at least one individual who is part of the conversation. The Texas rule, commonly referred to as the one-party rule, requires at least one party to consent to recording conversations. What that rule allows is any individual to covertly-and legally-record his own conversations with a broker, neighbor, or other party. Whenever you speak, it’s best to follow the old saying: Say what you mean and mean what you say. The other person in the conversation may be recording everyone.
If a seller is not present and participating in the showing, he cannot record audio … even if the conversation happens inside the seller’s home.
Why a seller cannot record audio of a showing
Texas law does not allow audio recording or audio monitoring of conversations that you are not a part of. If the seller is not present and participating in the showing, he cannot record it. Even though the conversation happens inside a seller’s home, he is prohibited from recording any conversations that he is not a part of.
But what about video?
Many homes today have security cameras installed that record video. Some have audio recording, similar to a baby monitor, and some without. The ECPA docs not prohibit video recording. In fact, silent video-like from security cameras-is generally allowed as long as it isn’t in an area where an individual would have a reasonable expectation of privacy. For instance, silent bathroom video recording is not allowed. But silent video recording of the foyer, kid’s playroom, exterior of a home, and a garage arc likely permitted.
Is your listing breaking the law?
Most professional alarm and security cam-era installers are familiar with the law. Normally, they install video cameras with-out audio and arc leery to place inside cam-eras in any location other than a foyer. However, when your seller is a do-it-yourselfer, you may want to ask questions. Have sellers tell you what the system will record. If audio is recorded, the seller may have a problem. If it is silent video, have sellers show you where the cameras are located. Make sure they aren’t video recording in a private area, such as a bathroom. Courts have traditionally upheld individual privacy rights over the property rights in a residential home. Consider limiting the use of cameras to the exterior of the residence. Violating state and federal recording laws can involve criminal penalties.
ln addition, Texas, like many states, recognizes several types of common law invasion of privacy claims. At its essence, invasion of privacy protects a person against unreasonable intrusion upon his seclusion, solitude, or private affairs. Even though recording may be in the seller’s house, courts have found that a visiting party can have a valid claim when the homeowner overreaches.
Illegal recording is a felony offense in Texas, and anyone who has been recorded in violation of the law can bring a civil suit to recover $10,000 for each occurrence, actual damages in excess of$10,000, punitive damages, attorney’s fees, and court costs.
Help your sellers avoid criminal or civil liability by encouraging them to concentrate on feedback given with consent and leave the mics and hidden cameras out.
Help your buyers be smart about surveillance
- Don’t discuss confidential negotiations within a home.
- Be careful about over-enthusiasm of particular features in a residence.
- Realize that most video recordings are legal. You and your client’s body language and gestures sometimes tell more that you think.
- If talking on the telephone, make sure that the owner’s neighbors can’t overhear your conversations. Neighbors are often nosier than the owner.
- If you are really worried that someone is playing unfair, turn on a faucet. The audio tones from the running water create white noise that masks voice tones and makes it difficult for micro-phones to do their job.
Don’t be too paranoid. Be security smart, but don’t let it ruin your real purpose to be at the house.
The information contained herein first appeared in the November 2017 edition of Texas REALTOR® Magazine and is being reprinted with the permission of Texas REALTOR® magazine and the author, Wes Bearden.
Please click here for a printable version of this great resource.
June 2019 Housing Minute from NAR
This video was published by NAR on June 28, 2019. Both pending and existing home sales rose on a month over month basis in May.
Instagram For Business
Instagram has become one of the most popular social media platforms for businesses. Here are some ideas to use for marketing your business.
- Add professional-looking photos.
Instagram is a photo-sharing social media platform, so it’s important to share visually pleasing content. Generic photos won’t cut it. Take photos, edit them, and take the time to make sure you’re creating a cohesive grid on Instagram. [Read related article: 10 Best Photo Editing Apps for Business]
To add a new photo, tap the camera button at the bottom of your screen. You can take a new photo or select one from your camera roll. On the next screen, there are multiple options to personalize your post. You can add a filter, tag other users, write a caption and add a location. You can also turn off comments on this page with the advanced settings.
- Use Instagram Stories.
Instagram Stories is one of the channel’s most popular features. These photos and videos disappear 24 hours after they’re posted. Instagram offers many tools that make it easy to create engaging and creative stories.
“Small businesses should leverage Instagram Stories to market their products and services, getting their messages to followers that otherwise might not see regular Instagram posts in their feed because of the latest updates to the algorithm,” said Laura Kenat, content coordinator at Jo Chicago.
On Instagram Stories, you can post recorded videos, still photos, live videos, boomerangs (videos that loop back and forth), basic text, music and focused photos. You can also add stickers such as your location, the temperature, user tags and hashtags.
The stickers for polls, questions and sliding bars make it easy to interact with your users and get feedback. Some accounts use the questions feature to hold a weekly Ask Me Anything, which is a fun way to answer common questions.
Another way to draw attention to your brand is with Stories Highlights, which stay on your profile until you remove them.
- Stream live videos.
In addition to Instagram Stories, users can take and stream live video that disappears – sort of like a cross between Facebook Live and Snapchat. You can give customers a live look behind the scenes of interesting aspects of your business, show products or answer live questions through the comments.
Once the video ends, it lives in your Instagram Stories for 24 hours. If you want a video to remain on your Instagram feed, you can upload video you’ve taken or shoot video directly through the app to post. If you choose to shoot or upload video, you can still add filters and change the cover.
- Interact with other Instagram users.
As with any social media platform, it’s important to engage and interact with your followers on Instagram. Here’s how.
Liking: Liking is a simple way to connect with other users. To like a photo, either double-tap the image or tap the heart button under the post.
Commenting: Next to the like button is a comment button – just tap it, and the app will take you to the comments page for that photo, with a text box where you can enter what you want to say. Hit Post when it’s complete.
Mentioning: As on Twitter, you can use the @ symbol to tag other users in your Instagram comments or post captions.
Tagging: Instagram allows you to add tags before you post content. To do so, tap Tag People before sharing your photo, and then tap where in the photo you’d like to add a tag. The app then prompts you to type in the person’s name to search for their account. Once you’ve tagged other users in your photo and shared the image, other users can tap on the photo to see the people who are tagged.
Direct messaging: To access Instagram Direct, go to the homepage and tap the button in the top right corner. Here, you can send private instant messages, photos and videos to other users. To send a new DM, tap the + button in the top right corner and select Send Photo or Video, or Send Message. Once you’ve sent the message, you and the recipients can message back and forth. Users who are not already following you will be asked whether they want to allow you to send them photos and videos before they can view your DM.
Facebook, which owns Instagram, plans to integrate Facebook Messenger, Instagram direct messages and WhatsApp to create one messaging platform, according to a January 2019 New York Times article. When this is done, you’ll be able to connect with your followers on Facebook and Instagram through one application.
- Use hashtags.
Hashtags are a great way to help users find content on Instagram. Hashtags can include letters and numbers, but they can’t contain any non-numerical characters. For example, #DaveAndBusters works as a hashtag, but #Dave&Busters does not.
Because users can both search for hashtags and click on hashtags they see in posts in the app, relevant hashtags can be a highly effective tool for getting noticed. However, make sure you’re using the right hashtags for your brand.
Hashtags such as #nofilter (a photo that hasn’t been heavily edited with filters), #selfie (a picture of yourself), and #tbt or #throwbackthursday (old photos) are popular on Instagram, but they may not work for you or your brand. It’s a good idea to look at other established brands or even personal users and bloggers in your industry for examples of what hashtags to use.
Instagram allows a maximum of 30 hashtags in a post or comment, but that many would be excessive. The fewer hashtags you can use to get quality responses, the better. Using a lot of popular hashtags might earn you a lot of likes from other users, but it probably won’t increase your following all that much, and the interactions you get will likely not be from people who are interested in your brand but rather those who just saw and liked your image.
Once you understand hashtags, you can branch out and experiment to find which ones work best for your brand. It’s also smart to create a custom hashtag for your business or even an event you’re hosting. This way, customers can follow along with an event, even if they aren’t there in person.
- Advertise on Instagram.
Like on other social channels, businesses have the option to advertise on Instagram. There are three formats for advertising:
Photo ads: These look like regular photo posts, but they have a Sponsored label above the photo. They also have a Learn More button in the bottom right corner under the photo.
Video ads: Like the photo ads, these look like regular video posts, but with a Sponsored label on top.
Carousel ads: These ads look identical to photo ads but feature multiple photos that users can swipe through.
All three ad formats appear in users’ home feeds. These ads support four objectives: video views, click-thrus to your website, mobile app installations and mass awareness.
For more information about advertising on Instagram, go here.
- Sell products on Instagram.
In May 2018, Instagram added a payment feature for select users. It has now started to roll Checkout on Instagram out to all users. And it could potentially have a big impact on small businesses. With the feature, users can buy things without leaving Instagram. In the coming weeks, you’ll see a blue Checkout button under images of products from an initial group of 20 brands, including Burberry, Nike and Warby Parker. All that will be required to complete a transaction will be a name, email address, billing info and shipping addresses. Facebook, Instagram’s parent company, will then save that data for future transactions. Users can pay via Visa, Mastercard, American Express, Discover and PayPal. While this remains in closed beta, small businesses do not have the ability to sell via the platform. But, we anticipate that will change in the next year.
Currently small businesses can take advantage of Shoppable Posts to sell products through Instagram. A business simply creates a product catalog connected to their account. Then you tag the product, similar to how you tag a person in a post. To create a shoppable post you must have a business account and you must sell physical goods that comply with Instagram’s merchant agreement and commerce policies. You can create your catalog through Facebook, Shopify or BigCommerce.
Other Instagram tips and tricks
To get the most out of your Instagram account, keep these tips in mind.
Links don’t work in Instagram captions. The only place you can share a working link that takes users to a website is in your profile. Links don’t work in captions or photo comments, so if you’re trying to direct people to a specific webpage, you can change the default link in your bio to that page and note in the caption that the link is in your profile.
Make sure your posts relate to your brand. It can be tempting to share photos of food, fashion and animals because they’re popular on the platform. But if your business has nothing to do with those things, it could make you look disjointed and confuse your followers.
Run giveaways and promotions. Post an image advertising your giveaway, sale or contest, and ask users to repost that image with a specific, custom hashtag to enter. You can then search that hashtag to see who has reposted it and pick a winner. Promotions like this allow your customers and followers to market your brand for you by talking about your promotion on their personal pages, and it drives more people to visit your profile. If you do decide to run a contest or sweepstakes, though, make sure you’re following rules and guidelines.
Respond to other users’ comments. When people comment on your photos, reply to them. Interacting with customers and followers shows that you are paying attention and care about what they say. They’ll be more likely to continue following you and interacting with your pictures if they feel like they matter.
Embed Instagram posts on your website. From the desktop version of Instagram, you can get an embed code to add specific images and videos to your company’s website. This shows visitors that you’re active on Instagram and can help you gain more followers. Just select the photo you want to embed, click the ellipsis button in the bottom right corner, and select Embed. This pulls up a box with the embed code and gives you the option to display the caption. From there, copy and paste the code where you want it to go on your website.
Use Instagram influencers to promote your business. Influencers are people who have large followings on Instagram. You can pay influencers to market your products to their followers in a natural way. These sponsored posts typically are subtle and don’t look like ads. This is helpful because people typically hate advertisements.
Share posts directly to your story. In May 2018, Instagram announced a feature that allows users to share posts directly to their stories. With this feature, small businesses can interact with their followers while promoting their product or services. If a client posts a photo of your product, you can share the post directly to your story to highlight the product and your client.
Use polls and other features in your stories. Instagram offers many interactive features that you can use to build online conversations and relationships. For instance, you can use the interactive questions sticker in Instagram Stories. This feature lets followers submit questions for you to answer. This is a fun and simple way to interact with your followers.
Use IGTV. Launched in June 2018, IGTV is a feature that shows long-form, vertical videos. IGTV is available in a stand-alone app and within Instagram’s app, and each video can be up to an hour long. If you get creative, you can use IGTV to market your business in several ways, including by hosting FAQ sessions and conducting how-to chats. For more ways to use video marketing on social media, check out this Business News Daily guide.
Click here for full article and other helpful information.
Source: https://www.businessnewsdaily.com/7662-instagram-business-guide.html
June Is Homeownership Month
June is homeownership month, a time to celebrate and promote the dream of owning a home! Here’s more info on how you can get involved this month and how you can be a #homeownerhero.
The New Earnest Money Delivery Date Sample Timeline
FROM THE CONTRACT:
“IF THE LAST DAY TO DELIVER THE EARNEST MONEY FALLS ON A SATURDAY, SUNDAY, OR LEGAL HOLIDAY, THE TIME TO DELIVER THE EARNEST MONEY IS EXTENDED UNTIL THE END OF THE NEXT DAY THAT IS NOT A SATURDAY, SUNDAY, OR LEGAL HOLIDAY.”
IMPORTANT TIPS:
– EARNEST MONEY CANNOT BE DELIVERED ON A SATURDAY, SUNDAY OR LEGAL HOLIDAY. HOWEVER, YOU DO COUNT SATURDAY, SUNDAY AND LEGAL HOLIDAYS AS EFFECTIVE DAYS WHEN COUNTING THE THREE DAYS, BUT NOT AS THE DELIVERY DATE. THE DELIVERY DATE IS THE NEXT BUSINESS DAY.
– WHILE EARNEST MONEY IS NOT
REQUIRED TO BE DELIVERED UNTIL THE 3RD DAY, IT IS RECOMMENDED TO DELIVER THE CHECK DURING BUSINESS HOURS TO OBTAIN A RECEIPT OF EARNEST MONEY FOR THE DELIVERY.
Click here for printable version.
What Is Earnest Money
What is Earnest Money
Earnest money is a deposit made to a seller that represents a buyer’s good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal and inspections before closing. In most cases, earnest money is delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer. Once deposited, the funds are typically held in an escrow account until closing, at which time the deposit is applied to the buyer’s down payment and closing costs.
Earnest money is also known as an escrow deposit or good faith money.
Reasons to Pay Earnest Money
When a buyer decides to purchase a home from a seller, both parties enter into a contract. The contract doesn’t obligate the buyer to purchase the home, because reports from the home appraisal and inspection may later reveal problems with the house. The contract does, however, ensure the seller takes the house off the market while it’s inspected and appraised. To prove the buyer’s offer to purchase the property is made in good faith, the buyer makes an earnest money deposit (EMD).
When Earnest Money Is Refundable
The buyer may be able to reclaim the earnest money deposit if something that was specified ahead of time in the contract goes wrong. For instance, the earnest money would be returned if the house doesn’t appraise for the sales price or the inspection reveals a serious defect – provided these contingencies are listed in the contract.
Of course, earnest money isn’t always refundable. For example, the seller gets to keep the earnest money if the buyer decides not to go through with the home purchase for contingencies not listed in the contract, or if the buyer fails to meet the timeline outlined in the contract. And, not surprisingly, the buyer will forfeit the earnest money deposit if he or she simply has a change of heart and decides not to buy.
Earnest money is always returned to the buyer if the seller terminates the deal.
How Much You Pay in Earnest Money
While the buyer and seller can negotiate the earnest money deposit, it often ranges between 1% and 2% of the home’s purchase price, depending on the market. If a home costs $250,000, a 1% earnest money deposit would be $2,500; at 2%, the deposit would be $5,000.
In addition to the local market rates, the size of the earnest money deposit depends on the level of interest other buyers have expressed, how hot the housing market is and how quickly a prospective buyer can close on his or her offering price. In hot housing markets, the earnest money deposit might range between 5% and 10% of a property’s sale price.
While the earnest money deposit is often a percentage of the sales price, some sellers prefer a fixed amount, such as $5,000 or $10,000. Of course, the higher the earnest money, the more serious the seller is likely to consider the buyer. Therefore, a buyer should offer a high enough earnest deposit to be accepted, but not so high as to put extra money at risk since there’s still a chance that the deal might not go through and the deposit not refunded.
Earnest money is usually paid by certified check, personal check or a wire transfer into a trust or escrow account that is held by a real estate brokerage, legal firm or title company. The funds are held in the account until closing, when they are applied toward the buyer’s down payment and closing costs. It’s important to note that escrow accounts, like any other bank account, can earn interest. Therefore, if the earnest funds in the escrow account earn interest of more than $5,000, the buyer must fill out tax form W-9 with the IRS to receive the interest.
Protecting Your Earnest Money Deposit
Prospective buyers can do several things to protect their earnest money deposits.
- Make sure contingencies for financing and inspections are included in the contract. Without these, the deposit could be forfeited if the buyer can’t get financing or a serious defect is found during the inspection.
- Read, understand and abide by the terms of the contract. For example, if the contract states the home inspection must be completed by a certain date, the buyer must meet that deadline, or risk losing the deposit – and the house.
- Make sure the deposit is handled appropriately. The deposit should be payable to a reputable third party, such as a well-known real estate brokerage, escrow company, title company or legal firm (never give the deposit directly to the seller). Buyers should verify the funds will be held in an escrow account and always obtain a receipt.
Source: https://www.investopedia.com/terms/e/earnest-money.asp
Real Estate Customs by State
At Republic Title, we want to make your job easier. That’s why we are sharing this helpful state-by-state guide. Containing valuable information, this guide provides a detailed look at local customs throughout the nation. If you need more information, please reach out to your Commercial Services representative.
Survey Deletion Coverage Q&A
What is Survey Deletion Coverage?
Survey Deletion Coverage is often also referred to as “Survey Deletion”, “Survey Amendment”, and “Survey Coverage.” When survey deletion coverage is given in the title policy it offers Buyers protection for errors or omissions that may have been made by the surveyor and accepted by the title company by changing the language in the “standard exception” of the title policy to read “Shortages in Area” only. The “standard survey exception” in a title commitment or policy (before being amended) reads:
“Any discrepancies, conflicts, or shortage in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.”
Upon receipt of an acceptable survey, the title company may amend this exception to read “Shortages in area” only. Things that a title company will look at to determine if a survey will be acceptable include, but are not limited to, the following: that items noted on the survey are listed in the title commitment, verify the legal description, check platted building lines and platted easements, and other matters such as the seal and signature of the engineer, date of the survey, and north directional arrow.
Survey Deletion is addressed in paragraph 6. A. (8) of the TREC One to Four Family Residential Contract, where the parties select between the options of amending or not amending the standard exception in the title policy and who will be responsible for the payment of the premium.
There are other issues that may show up in the review of a survey, such as a building or driveway or fence over a building line, or into a platted easement. When this happens, the title company may still accept the survey and amend the standard exception to read “Shortages in Area” only, but will generally add a special exception on Schedule B of the title commitment and owner’s title policy for any of these issues that were shown on the survey.
The cost of survey deletion coverage on residential transactions is 5% of the Owners Title Policy Premium, and is 15% of the Owner Title Policy Premium in a commercial transaction.
For more information on Survey Deletion Coverage, download our Survey Deletion Coverage Q&A flyer
Republic Title Announces ALTA Best Practices Recertification
Republic Title of Texas, Inc. is proud to announce our completion of HA&W’s ComplianceSuccess® Program which certifies compliance with American Land Title Association (ALTA) Best Practices. ALTA’s Best Practices Framework includes:
1. Licensing: Establish and maintain current License(s) as required to conduct the business of title insurance and settlement services
2. Escrow Trust Accounting: Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.
3. Protecting NPI: Adopt and maintain a written privacy and information security program to protect Non-public Personal Information as required by local, state and federal law.
4. Settlement Processes: Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer Financial Laws as applicable to the Settlement process.
5. Policy Production: Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance.
6. Insurance Coverage: Maintain appropriate professional liability insurance and fidelity coverage.
7. Consumer Complaints: Adopt and maintain written procedures for resolving consumer complaints.
For more information on ALTA’s Best Practices Framework and why it is important to do business with a company that implements these standards, visit www.alta.org/best-practices