Ensuring eSignature Lawfulness for Assignment of Partnership Interest in Mexico

How to eSign a document: e-signature lawfulness for Assignment of Partnership Interest in Mexico

all right welcome to the National exam prep and today what we're going to do is we are going to dive into contracts general principles of agency and the practice of real estate and on your National exam these three account for over 30 percent of uh the the information that you're going to be getting quizzed over and so we are going to dive into some of the concepts we're not going to truly look at the the questions per se but more look into you know definitions what we should be looking out for so that when we are presented a question we're not like hunting the we're not trying to remember and hunt down the exact question more so we just want to make sure that we understand what the verbiage looks like so when we are presented it um it's a little bit easier for us so we're going to start with contracts and again this is the national side and yes some of these pieces will correlate back and forth like to where uh where in Colorado and so they will touch some of the Colorado pieces and sold contracts very basic premise of a contract is it's written or oral and it's to either do something or to not do something so again a contract can either be written or oral and it's either say I will do this or I won't do this and so when we start thinking about contracts we have these Essentials of what a valid contract is and so firstly we need to have capable parties and to be a capable party the person must be of legal capacity to contract rights we're talking about 18 years of age or older and of sound mind the second thing that we think of is lawful object and a contract must be entered into for legal purposes and most contracts right when we're starting about real estate specifically they are for a legal purpose as far as a house goes but if I am trying to create a contract to give away my house so that um I can escape past um like an RRS or maybe a lawsuit then it's no longer for a lawful object right so really this is legal purpose not necessarily thinking about the house but thinking about why I am selling the house or Contracting to give my house away maybe consideration and this is where this this lawful object comes into play normally when we think about considerations about money but consideration could be anything of value and consideration could even be for love and affection and so that's when this legal purpose comes into play like if maybe I'm being sued by someone and they are going to potentially be able to take my house from me and some of my assets and I want to write a contract to someone in my family and all they have to do is give me love and affection right they're like Charles I will I'll love you forever you know if if you give me this house right and I put the house in their name for this type of consideration so that when I'm getting sued the other person can't take my property then I no longer have a legal purpose and the contract would be voided at that point and then offer an acceptance and offering acceptance is also called Mutual consent or meeting of the mind so as your goal move through and they're talking about offering acceptance Mutual consent or meaning of the Mind those all mean the same thing and if a contract is with an illegal purpose it is automatically void so again like I'm trying to get rid of my property so that whatever someone can take it from me that is illegal and the contract is void at that point one of the things that we need to keep in mind is this or versus ee right and when we start thinking about this specifically when we're talking about contracts this is the offerer and offeree and the offer is the person in the party who initiates the offer while the offer is the person who's receiving it right and so we typically think of this as the buyer is the offerer and the seller is the offeree because they are receiving it so that's truly how most of this happen yes the the seller is putting the home on the market and they are marketing it for sale but they're not offering right the offerer is the buyer and then when we start thinking about counter offers a counter offer is when maybe I put something in as the buyer and I offered to buy someone's home and they don't like my terms well then they do a counter and now the seller becomes the offerer and the buyer becomes the offeree now with that being said the original offer is no longer in play so some encounters the original offer is off the table it no longer exists this is a brand new contract now so if the seller offers to the buyer new terms and the buyer doesn't want to accept it the buyer just wouldn't sign the new counter offer the new offer same thing on the reverse side if the seller who originally gets the first offer so I'm the buyer again I offer to the seller and they don't like my terms they do not sign the original offer the parties only assign the offer that they are both okay with if you sign an offer and it is not the terms that you're wanting and we have both parties that's Mutual Ascent right at both parties we have agreeance and now we have a contract that is valid right so we want to make sure that we are not signing any offers unless we accept them so the counteroffer creates a completely new one and we can go back and forth if the buyer right I offered you the seller the seller doesn't like it they counter and I don't like their new terms I can counter back and we can just keep going back and forth and when we both like the the offer that we have now created we both sign it and now we have a valid contract so then when we start thinking about these contracts right some of the big things is void valid and voidable and when we go through a void contract is not an actual contract and it's 100 unenforceable right again when we think it's for an illegal intent or something along those terms contract is void a valid contract right this is legally binding it's enforceable in the court of law and that's where we typically think of like a contract to buy and sell right both parties have signed on it and there is everything's above board and now we have a valid contract avoidable contract is a valid and enforceable contract but there's some kind of flaw right that which will make it void and so when we think about this we think about contracts involving minors right so a minor can just walk away from a contract and I talk about Justin Bieber right that's such an old and dated uh analogy because Justin Bieber's you know in his 20s if not 30s now and back when he was a minor and he was making a lot of money doing you know singing and doing the songs and everything like that he didn't have money by any house that he really wanted to well his age at any point in the transaction could have walked away from the transaction and it would not have been enforceable contracts that we tricked or forced the party into doing something and contracts involved in an incapacitated party at the time of signing capacity including being drunk delusional or insane right so these are make it avoidable they all look good in the beginning but then somewhere along the line we realized that one of these things is actually in play and it takes this seemingly valid contract and now it's avoidable contract which now makes it a void contract all right so think about voidable and definitely lean on a minor someone under 18 years of age because that's what I truly think that you're going to see on your exam one of the other things under contracts that we have to keep in mind is this electronic and paperless transaction and you're going to see a question around this and it's really around e-sign right the electronic signatures and Global and National Commerce which is really just saying electronic electronic contracts are just as good as a paper contract right when we start thinking about sign on the dotted line or before the ink is dry or wet signature right where we're going room we're actually putting on paper a paper contract an electronic contract hold the exact same weight and so as we're going through you can absolutely send an electronic contract and it will go through and it will be just as enforceable as a contract that you actually went through and had someone signed up for the most part every contract that we do in the United States when Real Estate is involved is electronic these days every once in a while you will land on a contract where you're doing some wet signatures and you can bind those together as well like you could have a party doing wet signatures and eight already doing like trying signatures and both of those contracts can be joined together and be a fully enforceable contract one of the big things we need to keep in mind for this contract as well is bilateral versus unilateral contracts and specifically like an option and a bilateral contracts right both parties have a promise or a promise which means that they are both going to agree to perform certain actions and we like to think about the contract to buy and sell so sales contracts are common examples of bilateral contracts and so the seller says that they will go through and sell the home to the buyer if the buyer goes through and brings money to the deal right or if we're thinking about a listing contract it says the the seller promises to compensate the agent if the agent procures a buyer that's a bilateral contract if I do something will you do something bilateral then we think about a unilateral contract and this is a one-sided agreement where only one of the parties make a promise to perform and I think your test question is going to be around an option agreement to where you're gonna get a test question that says give me an example of a unilateral contract and so an option contract is an agreement between a buyer and a seller okay it's between a buyer and a seller where the seller offers the buyer the option to purchase their property and we say it's at x amount of dollars within some kind of time frame it doesn't matter what the time frame is but there is some type of type of time frame buyer's not legally obligated to go purchase the property all right they have the option to but they never ever ever have to go get this money to purchase the property also under the option contract the seller must wait for the buyer so if we gave the buyer 30 days the seller has to wait 30 days now the buyer at the end of 30 days can be like you know what I actually don't want the property and the the it just comes to terms the seller cannot sell it to anyone during those 30 days and the seller is free to offer the property to other potential buyers after that that time window so in this case we said 30 days 30 days goes by the buyer didn't perform didn't bring the money and now the seller is allowed to go and sell the property to somebody else so when you're thinking of this bilateral versus unilateral two parties have to perform promise for promise unilateral only one party has to perform and I truly believe that the test question is going to ask you is going to be around an option agreement you're also going to get some questions around amendments versus addendums and so an amendment is just a modification to an original contract all right and so this could be something where maybe we started off where the price was 550 and now we're dropping it down to 5.25. or maybe we said that we're gonna have a date and deadline for whatever date but we realize that that date is coming close we haven't been able to do what we needed to do to hit that deadline and we extend the deadline like three days both of these are a deviation from the initial agreement all right so when we start thinking about amendment I want you to think of a modification or a deviation from the initial agreement then we have an addendum and this is something that is getting added into an existing contract and it says like maybe you were writing the contract and the contract didn't say that the kitchen appliances were coming with the property well the seller meant for the kitchen appliances to come with the property like they don't want to take them to their new place they don't want to have a yard sale to get rid of them so you both parties get to an agreement and they write this addendum stating that they already have a contract in place but the appliances were left out and we want the appliances to go with the original contract all right so an amendment is just a slight change right like removing the dollar value we already have a dollar amount but we're changing the dollar amount or we have dates and deadlines but we're changing the dates and deadlines an addendum is we are changing the contract right like the contract never anywhere mentioned kitchen appliances in it we are now inserting kitchen appliances because well again the seller doesn't want to have a yard sale and sell the appliances they'd rather just go with the house and be one less headache I mean they're already buying a new house selling their house and moving their furniture they don't want an additional thing going on in their world you're definitely going to get questions around contingencies and so a contingency is really just like I intend to buy your house dependent upon this meeting my soul and subjective discretion whether I like it or not like that's really what it is and so like I say Mr Mrs seller and I'm the buyer I want to purchase your house contingent upon me being able to go get a mortgage like I need to have the money like I can't afford to buy your house I need to be able to go get a mortgage Mr Mrs seller I intend on buying your house dependent on the title work being clear Equitable and marketable title same on right home inspection like depending on the home inspection depending on me being able to sell my house like I have to sell my current home to be able to afford to buy your home contingent upon the appraisal meeting like I'm offering five hundred thousand dollars for your home your home has to appraise for at least five hundred thousand dollars for the bank to give me that money if your home appraises for only four hundred and fifty thousand dollars I can't buy your house as well as homeowner insurance so you could see a question around any six of these and basically all it means is that it has to be in place to where I put these deadlines in to the contract and if one of these things doesn't meet my expectations I do not have to buy the house also with that being said what this means is the buyer gets their earnest money back for the most part all these real estate contracts they protect the buyer and so these contingencies while they do have some to protect the sellers for the most part that's around seller financing most contingencies in a contract are to protect buyers and so as we're going through and we're thinking about this guys I need you to just keep this in mind that contingencies protect the buyer and with that if we make an objection and we send a written objection to the seller to terminate and we are on or before our contingency date and deadline the earnest money gets returned back to the buyer so for example Home Inspection my home inspection is due tomorrow and I have the home inspection and I don't like something right like I go through and maybe there's a sewer issue uh HVAC issue maybe there's a crack in a foundation I don't want to buy the home anymore I send a written termination to the seller stating you know that I don't want to be in the contract anymore because of this home inspection didn't look the way that I expected it to look the seller has to give me my earnest money back the contract ends both parties get returned to a neutral position like the contract never even happened at real estate contingencies you will get a couple questions around this it says when a buyer fails to fulfill the terms of a real estate contract the seller is entitled to keep their earnest money all right so now we're doing the opposite all right so like let's say that I put this Earnest me in place right because that's how we're doing a lot of this stuff I put earnest money in place and I didn't perform and I try to walk away the seller actually does get a key by earnest money but if I'm going through and I have this contingency and that is the reason why I am walking away I'm allowed to walk away and get my earnest money returned one of the other things that you're going to get is you're going to get um questions around counter offers and multiple offers all right and so a counteroffer we just talked about the counteroffer going back and forth between the seller and the buyer the offer who is the buyer the offeree who is the seller the seller doesn't like the terms they counter that goes back and forth however many times both parties can reject it they can walk away and every time that a counter is put in place that is the new offer and the other one falls off the table you don't go back to that one the other thing is multiple offers and we just came out of a time frame and environment where the market had a lot of multiple offer situations and while we're still seeing it today it's not as relevant as it used to be and so some of the things that we have to keep in mind is that agents must present all offers all right so this could be an offer from your brokerage this could be um an offer from a client or I'm sorry from another customer after you have presented the other offers right so let's say that you're under contract and an offer comes in you are still obligated to present that to your client or the date the deadline pass for all offers still the offer comes in you still must present so an agent must present all offers if you go in with that mentality it doesn't matter when or where the offer came from you still must present it on the other hand you were not obligated to go get more offers after your client is under contract all right so if offer comes in yes you you have to let your client know and with that being said you are not obligated to go get and go find your client more money by vote go procuring more offers for them all right so you must present them all but once you're under contract you don't need to keep doing open houses and marketing and doing all these things to get more offers in so I'll switch over to general principles of agency we have three different types of agency we have a special agent this is an agent that's just doing one specific task this is someone that might be what we think of ourselves right like I might be a buyer's agent helping someone go buy a home I might be a seller's agent helping someone sell a home that's my job special agent a general agent is an agent that is doing like an ongoing task or a variety of tasks within like a certain Arena and I want you to think of like a property manager right a property manager is a general agent who is maybe calling for the property to be fixed when something happens they're collecting uh deposits they are collecting rental checks that's General agency and then when we talk about Universal agent I want you to think of Poa power of attorney all right this is someone that pretty much can do anything and everything for their client including like sign their name on a contract like if I were to give a client Universal agency what this means is that if I said hey find me a property that's going to cash flow x amount of dollars in this area and the client or the agent finds it for me they can sign my name and attach me to a contract because I gave them this which would mean that they also have to have POA like I actually have to sign a document giving them power of attorney it would be limited like it would only be in the real estate Arena like they couldn't go sell my house or sell my car or have like uh Health around me or anything like that like this is really just this specific thing I'm doing POA to go buy houses for me so special agency General agency and Universal agency or three different types of agencies that you will need to know real estate brokerage relationships so obviously like the first two I feel like we're pretty good there right like a seller's agent and a buyer's agent oh that right so if I'm working for the seller I owe this to the seller if I'm working for the buyers for the buyer we're talking about utmost good faith loyalty and Fidelity like I owe these three things uh most good faith loyalty and Fidelity if I'm working as an agent right I am working for my principal my client all right as an agent these are agency relationships we also have transaction broker and they're working for the transaction all right this is someone that is not advocating for either party all right like you're providing Communications you are someone's telling you and you are going through and negotiating right you're not negotiating on behalf but if someone says no I want you to do this for me like you're relaying that negotiating you're doing the Contracting and you're doing the closing right for both parties and you don't Advocate or represent either one you're representing the transaction you were getting the transaction to the finish line and then we have dual agency and so for the national exam dual agency is legal and what we have to know is that disclosure must be presented to both the buyer and the seller so you must give disclosure and they must agree to this and just because right we just need to know that Colorado it's illegal like we do not have dual agency I know we're talking about National right now but in Colorado it is illegal to represent both parties transaction broker and dual agency are not the same thing right transaction broker I represent the transaction dual agency I represent both parties as long as I disclose to them I'm doing it and they both agree to it so again right like as we're going to hit this thing home because agency is very important like I said these three topics these amount for more than 30 of your exam um so an agent is an individual hired by a principal to act on their behalf and to represent their interest right like as long as I'm not doing anything illegal or they don't ask me to do anything legal like I am doing everything for them to help them win like that is my job is to make sure my client my principal wins agency is the relationship between the new the two parties right where the principal or the client hires me the agent to represent them and the fiduciary right this is what we owe a principle we don't owe fiduciary responsibility to a transaction broker are in a transaction brokerage relationship we don't know fiduciary to a customer so this is trust loyalty uh confidentiality care and due diligence all right these are our fiduciary responsibilities that we give as an agent to our client or our principal we don't have these in a transaction brokered relationship and we do not have these for a customer so as we're talking about this agency right we got to talk about agency relationships and there's two different types of agency relationships that we have one's Express right that's either oral or written right like we either verbally or we put it in writing that we are going to work together and it says right while the validity of an oral agreement is an establishing agency varies by state to state a written agreement such as a listing or buyer's agency agreement is the safest and most appropriate way to create an agency relationship so again we're talking about the national exam now so we know that we can have an oral agreement and we know that the statute of frauds and with other things that are in place the better way to go is for it to be in writing implied Agency on the other hand right this is through our actions and this example says right a real estate agent engages with the homeowner who's selling their property privately so let's think of a for sale by owner right someone that's putting it up on on Zillow say anything in my house and it's for sale and the agent by itself I'm bringing a potential buyer to the property both parties may be considered to have established an implied agency relationship why because now the seller I'm bringing them a buyer they might think that I'm working for them and now if they think that I'm working for them right and I owe them all those things for fiduciary responsibility because how I am bringing them a buyer now the court might get involved because I wasn't really working for the seller I was working for my buyer I wanted my buyer to win but then the seller thought because I was finding them so on and that I was working and and helping them through the transaction right giving them paperwork and whatever they told me I brought it back to the buyer well now the court might get involved and now the court is going to settle any dispute that might happen because of this thing so that's why we do a lot of things with uh agency relationship disclosures and here it is right so here's your brokerage relationship disclosures so the definitions of a working relation form is not a disclosure to begin with right this is a form that is only required when a party inquired about a brokerage relationship that's not offered so if I am representing the seller as an agent and someone comes in and starts asking me information I have to hit them with this working relationship because they need to know that I'm not their agent like I can't offer them like advice and I cannot be a fiduciary for them so I have to give this paperwork it is a resource to provide a consumer when they ask about different Brokers relationships awesome so like someone's like hey can you represent me as a customer or can you help me as a transaction broker whatever that looks like this is also a piece of paper that I would hand to them The Brokerage disclosure must be in writing this cannot be something that's written so I'm sorry that cannot be something that's verbal like I must have the actual approved form that is a brokerage relationship disclosure and I must hand it to them part of the test question right is that it must be at the earliest reasonable opportunity before they and start giving me confidential information all right so if someone walks in to an open house and I represent the seller and someone starts telling me Oh my God I love this house I actually need to move here I'm about to be kicked out of my house and I would do anything to buy this and I'd probably go a hundred thousand dollars over asking and if I accepted all that information without stopping them and be like whoa whoa whoa pump the brakes let's land the plane real quick brokerage relationship disclosure I actually worked for the seller anything that you say will be used against you I will be in a lot of trouble if that doesn't happen guys and so this must be made immediately before they tell us any of their motivations on why they're moving or what their financial qualifications look like we need to go through that and know that if the customer doesn't want to sign right because this is truly around like customers if the customer doesn't want to sign we actually have to note that and give them a copy and then keep a copy for ourselves and a big thing to remember on this is the change of status all right so let's say right I work for a buyer and I work for a seller right two different parties two totally different transactions well now my buyer sees my seller's property and they want to write an offer on it now what I have to do is I have to let both parties know that hey I work for the buyer I work for the seller and I can represent the transaction as a transaction broker and I would do a change of status immediately if they did want to proceed right and if I was able to do that right and there'd be a box check in my agency agreement which would say Charles are you allowed to do this but that's one of the things so a change of status form happens immediately when the the change is happening and I really think about it like an agent for both and I'm dropping down for TV for the transaction when my buyer and my seller want to do a deal together that's when this change of status form happens and it also must be in writing and it has to be on a commission approved change of status form so this is the information that I need to know for brokerage relationship disclosures like all these bullet points when we're going through guys and we've been talking about fiduciary duties a lot right and this is that AC cold right I don't have it written in the AC cold way but this is what it looks like so firstly it's accounting I have to know where all my clients money is right like at all times I gotta know where it is and I can't combine my money and their money together right that's against the law that's called commingling uh you're not going to mingle money care right I have to use like my expertise all my skills on the behalf of my clients like that is care confidentiality this thing goes two ways and I think about this I cannot disclose any information I can't disclose any information that will hurt my client so if my client needs to move to Atlanta for a job and they got to be there within 30 days and they need the money for this house to sell and it disclose that to the buyer because they could potentially hurt my client right it'll be breaking the care piece so I'm not allowed to disclose any uh any confidential information now disclosure it looks like this disclosure is I have to disclose any material defects that I know about the property as the seller or as the the buyer's agent to my client right so if I represent the buyer any material defects that I know I have to let them know well let's talk about with them as like working for the seller and I find out that the buyer just lost their job I must disclose that information to my client all right so that's what disclosure looks like like if I'm on the buy side and I know bad things that are with the property I have to disclose to my buyer if I'm on the sell side of things and I find out bad information about the buyer I actually have to disclose her to my seller loyalty again like I'm here to make my client win I am here to go to battle for them and as long as they're not asking me to break the law or do anything illegal I owe them loyalty which means like if this house makes sense for them that's the house that I'm going to show them and fight for them to win and this house over here I'm going to make more money in a commission check that's not the house that I'm fighting for right like if this doesn't make sense for them I'm not fighting for this house I'm fighting for the house that makes sense for their needs and then obedience right again like as long as they're going through and they're not telling me to do anything illegal I am going to do it right and this is where that vicarious liability piece comes into play right like a couple things they tell me to do something illegal and I do something illegal well they're going to get a lawsuit probably just as quick as me and then by curious liability like if I were to do something like I accidentally hit someone with my car my client isn't going to get sued right I might get sued about my client just because I'm working for them won't get sued so these are your six fiduciary duties think about it is AC cold right accounting care confidentiality obedience loyalty and disclosure and so on the exam I'm probably just remember fiduciary AC cold and with that acronym that I have if something pops up and it says which one of these are not a fiduciary responsibility for an agent and most likely they're going to give you something that doesn't start with one of these letters so it doesn't fit in the acronym AC cold that's going to be what I'm going to be like oh that thing that thing's not part of my fiduciary responsibilities now what do I owe a customer and guys I want you to keep this in mind a customer could also be the third party to a transaction all right so the third party to a transaction if I represent the seller would be the buyer who is being represented by the buyer's agent or if I represent the buyer it could be the seller who's represented by the seller's agent or if I represent the seller and someone walks in off the street also a customer or third party through the transaction they're the exact same thing when it comes to these questions so third party to the transaction or customer I want you to go into the exact same mindset I owe them fairness dealings which all that means I can't lie to them all right like do not lie I have to go through and give reasonable care so like I can provide paperwork I'm not going to ask them and and and strategize with them but as long as I'm not doing anything to hurt my client that is care that is reasonable care and diligence like I might go to them like hey the date and deadline is coming up is there anything you want to do now if they ask me for any advice like no no I can't do that and I should still go through and say hey like this is about to happen does your client want to do anything and disclosure material facts again right the disclosure means that if that there's a crack on the foundation I have to disclose it or if I know that the other party has done something which will impact the um the transaction I have to let my client know right so disclosure to a customer again is something that we have to do disclosure material facts reasonable care fair and honest dealings that is what we owe a customer or third party to the transaction so now we're to the end right like we're looking at the the contract the agency relationship can be terminated all right so the agency relationship is over so completion or performance like I help them find one two three main street and help them sell one two three main street the agency agreement's over mutual agreement like they don't want to work with me anymore I don't want to work with them anymore we can let each other out of the contract the expiration of a contract right like we know that all contracts have to have a definite start date and a definite end date and if we had that definite end date the contract is over the death of our client or principal or the agent I really want you guys to think more of the brokerage rights for designated agents but if the broker dies then the relationship will end and then obviously like if I represent the the listing side of things and the house burns down in the relationship will end as well so these are how a contract can come to conclusion is one of these items as far as agency goes all right so now we're to the practice of Real Estate this is our third topic and our last topic of the day and when we're going through these are going to be important things to keep in mind again like all three of these things are north of 30 of your National exam and some of them cross back over into the state exam for Colorado so Anti-Trust laws so we have Sherman Antitrust laws which forbid a couple different things price fixing group boycotting and Market allegation tying arrangements so when we look at this thing let's talk about price fixing and this is when we have multiple agents go in and they say guys look we own this market and if we all got together we said that our new commission rate was 10 and we all stuck to it the consumers would have to pay 10 because we do most of the business and where else are they going to go during a test question the test question goes like you walk into a room and the the the agents are talking about commission rates what should you do the answers immediately walk out like this is a super big deal and you can see at the very bottom of the screen how big of a deal that really is um this happens you walk into a room you immediately walk out of this room you do not pass go on this thing like you you run out then we have group boycotting right so this was like maybe there's like two three Brokers and they're like you know what we hate this other brokerage and what we should do is not show any of their properties we're not going to show any of this other brokerages properties because we don't like them that is group boycotting and that is also illegal another thing is allocation of markets and I would say like the easiest way for me to remember this is let's just say like we have like different ethnicities of brokerages and we're like awesome so you get that that part of town because that's where this ethnic group lives and you get this part of town because that's where this ethnic group lives if brokerages and Brokers are dividing Market space that way that is against the law and then tiny Arrangements right and so this is where um I like just the example right it says for instance if a real estate broker owns 10 acres of land that a builder wants to buy that broker will only sell it to the Builder if they list the property with the brokerage firm like that's against the law if I'm selling the property I have to sell the property I can't say like you have to use me when you're going to buy the property or sell the property in the future right that's the tiny Arrangement and that is against the law to do so those are the four different Anti-Trust laws that you will need to remember for the exam and I don't know if you're going to get a test question around this I think like someone is going to get unlucky and get like the actual dollar amount but it's a hundred thousand dollar fine three years in prison all the way up for a corporation that can hit for a million dollars like if the whole brokerage is doing this thing that's a million dollar fine if it's an agent it's up to a hundred thousand dollars and again like if it goes to a civil case most everything and we all know this is it could be up to three times the uh the value and you would have to pay attorney fees and costs as well so uh you know when you look at the PSI um manual the candidate bulletin it does say that you should know this dollar amount and the fines that go around it I'm not I can't say that I've ever heard anyone getting this thing but I would absolutely make sure that I know price fixing Anti-Trust Market allocation and tying arrangements for the Sherman Antitrust laws you're also gonna have to know you know the difference between an independent contractor and employee and so basically this is what I like to think about when we're going down these pieces when we're talking about an independent contractor we cannot require them towards work set hours we cannot require them to perform services at a specific location you cannot require them to make me meet at and make staff meetings we cannot make them train um and we cannot like give them stuff that says like these are what you have to use and these are your material right like those are the things that we cannot do so if anyone goes through and they say hey look these are your hours you're expected to be here this is when you're supposed to work and this is where we expect you to be when you're working you're not an independent contractor you're an employee at that point you're a W-2 you're no longer a 1099 and one of the big things is when you're at 1099 when you're an independent contractor The Brokerage does not hold back your taxes right so you will be responsible for paying your federal and state income taxes so that's why I look at hours mandatory right like if there's mandatory anything I'm no longer a 1099 I'm no longer an independent contractor I am an employee and federal and state income so if you get a test question around these like these are the things that you want to look at these are the things that make you an independent contractor versus a W-2 employee also guys when we start thinking about this you're gonna get some fair housing questions and let's just think about like advertising and marketing right and everything that we go through whether it is Facebook the newspaper Billboards if we're putting stuff out there that eludes that like this is our ideal client or this is someone that shouldn't be here it's against the law that is a federal fair housing violation right so if you're doing and this is the thing guys like if you're going through and you're putting like predominantly like white advertising around like a church and a house like you're I mean that's that's religion and race right right there and so you have to be very cognizant of a lot of the things that you're doing or if you go through writing this is like examples down here if you come out and just straight say no no children no people in wheelchairs either one right like if you're advertising is pushing an agenda through it's like marketing to make it look like this is your ideal person or if you're coming out and just straight saying like these people should not apply both of those and so when we start thinking about uh federal fair housing it is race color religion sex disability familiar status and national origin if you were doing anything that says like one of these people should not apply one of these people is not allowed one of these people write 100 against the law and when we go into this thing the last thing that I really want to touch is redlining blockbusting and steering and so redlining guys like this actually used to be like either figurative or literal like these guys would go through and they would just circled on a map and says awesome this group that lives in this neighborhood is this ethnic race and though that ethnic race we don't want to loan money to them because property values go down or they typically default or insert whatever here that's Redline it is against the law and is around funding all right this is around banking like the banks would say like we're not going to loan any money to this area because this type of people lives there and we are not going to give them money to buy a house a hundred percent against the law steering this is where like you go through and you're telling someone that maybe they don't want to live in this area because this type of person lives there and they don't look like this type of person or you say hey you don't want to live there because your people don't live there you probably want to live over here either one of those is against the law and again this is racial racially determined right this is this is around a lot around the the color of people's skin all right so that is steering steerings when I say hey you don't want to live in that area because your people don't live there or hey you might want to live in this area because those people your people do live there that is steering and it's against the law the other one is called blockbusting they also might call it Panic selling or they might call it Panic peddling right you're gonna have to know all three of those because if you get a question it actually might not be um they might not call it blockbusting they might call it Panic selling and they're going to say you know which one of these is not around um around the same category right where they're going redlining steering blockbusting and they might replace blockbusting with panic selling them throw something random in there like which one of these is about against the law well this looks like it's this this is like when I go into uh someone's neighborhood I'm like hey I don't know if you've noticed but this type of person this ethnic group is starting to move into your neighborhood and you know what happens when that ethnic group moves in is that the value of the home start to go down and so you might want to sell today before anyone else realizes that they're moving in that's Panic selling that is blockbusting again a hundred percent against the law like you cannot go into a neighborhood and to incite fear because of an ethnic group is moving into the neighborhood and you need them to sell their house they don't lose any money right like all three of these things a hundred percent against the law and you need to make sure that you understand all three of these for the exam