SEBAR Legal News Update

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SEBAR Legal News Update featuring News that's Relevant to YOUR Business!

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SHarner@SEBrealtors.com

Legislative Update

Bill to Eliminate Independent Contractor Status

As you know, back on April 13th, the Labor Committee of the Michigan House of Representatives held a hearing on HB 4390 sponsored by Rep. Jim Haadsma (D- Battle Creek). This legislation would ignore Michigan’s current real estate independent contractor test, in favor of a nearly impossible to pass “ABC Test” that would force almost every independent contractor in Michigan into an employer/employee relationship. This legislation would result in loss of worker flexibility, increased labor costs, and stiff penalties for businesses found in violation of the proposed law.

Michigan Realtors® is working hard to oppose the legislation which remains bottled up in committee since its initial hearing. At this time, Rep. Haadsma is open to including exemptions to the bill, similar to the California law, for real estate brokers/salespersons and real estate appraisers. There were talks about a potential workgroup this summer on all exemptions, but that group has yet to come together. There is never a final word on legislation so we are continuing to have conversations with legislative leaders as they eye a return to session in September.

For more videos and transcripts

Source: Michigan REALTORS^® (MR)

6 Ways Your Buyers Can Save on Their Mortgage

With rates near 7%, your clients are feeling the financial squeeze. Here are a few secrets to ensuring they get the best deal they can on their loan.

Click Here to Learn More

Source: National Association of REALTORS^® (NAR)

Code of Ethics

Code of Ethics Training

NAR's Board of Directors approved a change to the Code of Ethics training requirement, extending it from every two years to every three years. This extends the current cycle deadline from March 1, 2022, to Dec. 31, 2024.

REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of instructional time. The training must meet specific learning objectives and criteria established by the National Association of REALTORS®.

Training may be completed through NAR’s online courses or through another method, such as online or classroom courses via local/state associations. Read the consequences for failing to complete Code of Ethics training.

Continuing Education Requirements

Don't Wait, Renew Your License Today

The state of Michigan requires real estate licensees to earn at least 18 hours of continuing education (CE) credits every 3 years to renew their real estate license. The topic number and course name must differ from the other courses a licensee has taken within the 3-year period. Each year a licensee must complete at least 2 hours of education that involves the law, rules, and court cases regarding real estate. This is part of your 18 total credits for the 3 years. Any extra legal hours earned will count towards the total requirement.

If a licensee fails to complete 2 hours of legal credit in a year, they may try to make it up in proceeding years. If the licensee is audited, this does not guarantee the licensee will not be penalized. To check your CE Credits, visit and log into the CE Marketplace. If you do not yet have an account, please create one by visiting CE Marketplace.

Locate answers from LARA to questions related to real estate licensing, continuing education requirements, MiPlus account information, licensing applications, licensing forms, renewal requirements, licensing guides, and much more by visiting the Department of Licensing and Regulatory Affairs website.

Important Reminder About Credit Reporting

After an instructor or school administrator has reported your class attendance, you will receive a class completion certificate by email. Watch for this email to arrive! It confirms that your class attendance has been successfully reported and recorded in your CE Marketplace account.

Please note that your class attendance will be reported to CE Marketplace within ten days. If you do not receive the confirmation, it is your responsibility to contact the school administrator or instructor.

Further, you do not need to send proof of CE to the Department of Licensing and Regulatory Affairs (LARA) unless you are being audited and asked to submit the information.

For answers to any questions about CE hours or tracking credits and class completion, visit www.cemarketplace.net or contact via email at tracking@cemarketplace.net. You can also call during normal business hours at 844.642.6633.

For answers to education questions, please visit our Education FAQs.

Credit Requirements

IDENTIFYING REAL ESTATE LICENSE EXPIRATION DATE AND CONTINUING EDUCATION DEADLINES

To remain compliant and meet the continuing education requirements for renewal, licensees need at least 18 total credit hours every three years. Within these 18 hours, two hours of legal credit must be taken in each year you are licensed. The additional 12 credits to reach a total of 18 prior to renewal may be credits of any type (legal or elective) and may be taken at any time during the three-year period.

MICHIGAN REAL ESTATE LICENSEES NOW HAVE INDIVIDUAL EXPIRATION DATES, BASED ON THE ORIGINAL ISSUE DATE OF THE LICENSE.

To find your license expiration date(s), click here!

The month and date of your license expiration is your new deadline each year to complete your 2 hours of legal credit.

In the example below, the licensee has been assigned a new license expiration date of 5/24/2025 after their renewal for 11/1/2021.

To identify your continuing education period, count back three years from your individual expiration date.

For the example above, the education period would be as follows:

5/24/2022 – 5/24/2023

First year of education period and license cycle: At least 2 hours of legal credit are due by 5/24/2023.

5/25/2023 – 5/24/2024

Second year of education period and license cycle: At least 2 hours of legal credit are due by 5/24/2024.

5/25/2024 – 5/24/2025 (or the day you renew your license, whichever comes first)

Third year of education period and license cycle: At least 2 hours of legal credit are due by 5/24/2025.

12 additional credits of any type (legal or elective) by 5/24/2025 or date of renewal to reach a total of at least 18 credit hours prior to license renewal every three years.

Click Here to Register for SEBAR CE Approved Educational Classes!

Source: Michigan REALTORS^® (MR)

Embrace an Educational Mindset and Watch Your Business Soar

A business approach that includes teaching, coaching and training can help you demonstrate your commitment to helping clients make informed decisions.

Click Here to Learn More

Source: National Association of REALTORS^® (NAR)

C2EX REALTORS^® COMMITMENT TO EXCELLENCE

Commitment to Excellence (C2EX) from the National Association of REALTORS® empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. It's not a course, class or designation—it's an Endorsement that REALTORS® can promote when serving clients and other REALTORS^®.

Source: National Association of REALTORS^® (NAR)

Legal Line Question

QUESTION: Who can provide a market analysis and who can be paid for a market analysis?

ANSWER: The Occupational Code allows a salesperson to prepare a market analysis only for a customer or potential customer and only if the salesperson does not charge separately for this service. This means that a salesperson cannot prepare a market analysis for any third party. A broker or associate broker can prepare a market analysis for any person or entity other than in “federally related transactions” and can charge for this service. The market analysis must be in writing and also include this language in boldface print: “This is a market analysis, not an appraisal and was prepared by a licensed real estate broker or associate broker, not a licensed appraiser.” MCL 339.2601(a)(ii).

For more legal Q&A, visit law.mirealtors.com

Source: McClelland & Anderson Legal Hotline

LEGAL RESOURCE

Visit MIRealtors.com website

Source: Michigan REALTORS^® (MR)

Thank You to our 2023 SEBAR Affiliate Partners ...

Diamond Partners

ATA National Title Group

Amber, Majtyka & P.J. Ruokis

Michigan Title Insurance Agency, Inc.

Rick "Smitty" Smith, Adam Drobet, Michelle Vajcner, Julie Wery

Pillar to Post

Steven Peterson

Ruby Partners

First American Title Company

Linda Gutierrez, Rachel Lloyd, Frank Lucarelli, Angie McNeely

Supreme Lending

Julie Sammons & Stephen Fiordelis

Gold Partners

Accuspect Home Inspection Company

Dale Raines

First Merchants Bank

David Evanoff, Howard Roberts, Susan Roppel

Monroe Community Credit Union

April Eggert

Silver Partners

2-10 Home Buyers Warranty

Mark Light

American Financial Network

Tom Ciotti

America's Preferred Home Warranty

Tyler James

Delmar Mortgage

Ramzi Faraj

Downriver Profile

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GreenStone Farm Credit Services

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Hassett Title

Dan Hassett, Doug Hassett, William Hassett

InsideOut Inspection Plus

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Lawyers Title of Monroe

Goran Cepo, Ann Hammack, Kendan Myers

Simple Mortgage

Dawn McCarty

Union Home Mortgage

Jacob Boes & Shannon Henegar

University Lending

Dan Voran, & Donna Ferguson

We are so grateful for your continued support of SEBAR!

Southeastern Border Association of REALTORS^®

Shannon Harner, RCE, AHWD, C2EX, e-PRO, Chief Executive Officer

Lisa Horvath, e-PRO, MLS Director

Kyra James, Membership Director

Monroe Office

125 Cole Road

Monroe, MI 48162

734-242-6866

Downriver Office

Horizon Business Center West

20600 Eureka Road, Suite 510

Taylor, MI 48180

734-287-8060

Monroe Office Hours: Monday through Friday 8:30 am to 4:30 pm

Downriver Office Hours: Monday through Thursday 8:30 am to 4:30 pm