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Political Science 1113: Paper 2

American political cultural has been a dynamic and fluctuating set of ideas, norms, customs, and values. From the pre-Revolutionary folkways in Albion’s Seed, the spirit of democratic libertarianism in 1776, the ideas of the Founders, the rise of Jeffersonian and Jacksonian democracy, Frederick Douglass’ reflections about slavery on the 4^th of July, we have seen many interpretations of important political values such as: freedom, order, democracy, aristocracy, individualism, community, limited government, republicanism, etc. These ideas do not always carry constant meanings and necessarily evolve over time in response to events and new conditions. The 19^th century United States experienced a number of important social, economic, and political transformations that had a profound impact on American political cultural. Changes like urbanization,industrialization, mechanization, the closing of the frontier, the abolition of slavery, emergence of a capitalist, free market economy, and the Civil War all contributed to the development of American political culture in their own ways.Click here to get more on this essay..... Your task for this assignment is write an essay about these 19^th century transformations brought about change in American political ideas and values.Choose an element of American political culture and trace the changes in its meaning across time, noting its impact on events and/or the impact that events have on it. For example, one might consider how the Civil War and abolition of slavery were influenced by certain ideas about democracy and how new ideas about democracy emerged in the wake of the failure of Reconstruction. Or one might look at how the closure of the frontier and the rise of urbanization and industrialization impacted ideas about individualism and liberty.
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Class Exercise: each student fill out a TAR Seller’s Disclosure Notice

Most real estate-related lawsuits have to do with the condition of the property.

Latent defect
Not trivial or insignificant (foundation, termites, roof, flooding,)
Not “readily discernible” (not easy to find) to the public
Must be disclosed, if known to seller or licensees in the transaction

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How to avoid problems/lawsuits:

(1) Disclose! Disclose! Disclose! Disclose! Disclose! Disclose!
Seller must disclose any known defects. (Use Seller’s Disclosure Form)
Agents/Brokers must disclose any known defects, no matter who they represent.
Disclose to the principal they represent (“client”)
Disclose to the other party (“customer,” “third party”)

Third party = anyone you do not represent
So not fiduciary duty, but honesty & fairness

(This whole chapter is written from OLD perspective of Sub-Agency:
“If you represent the seller, what duty do you owe the BUYER?”
Under sub-agency, all licensees represented the seller. The buyer was only a third party, and licensees called the buyer a “customer.”)

Obligations to Third Parties: (These are not fiduciary duties)

1. honesty & fairness (Canons of Ethics)
2. disclose known defects
3. disclose agency
4. do not discriminate
5. title insurance
6. tell them to consult an attorney if they don’t understand contract

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(2) Recommend Buyer use a licensed inspector
They rely on the inspector instead of you. (think lawsuit liability)
If they refuse to get an inspection, have them sign a statement saying so.
Use of a licensed inspector is a “safe harbor” for real estate agents
do not recommend a specific inspector (creates liability)
illegal to do both jobs in same transaction
never conceal an old bad report (within last 4 years)

(3) If you rely on another source, say so.
Ex: “2400 square feet per HCAD”

(4) Advise Buyer to verify important information

Buyer’s Agent has a duty to require proof from the seller/seller’s agent.

examples:
buyer can pay an appraiser to measure house square footage
ask surveyor to verify extent of easement, total acreage, etc.
Tell buyer to read the restrictions.
Local ordinances
Rural property: wells, septic systems, access
seller who represented there was a warranty

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Stigma -- a perceived “defect” in the property that is not physical but emotional or psychological in nature

must disclose

1. death by accident related to the condition of the property

2. murder on the property
“no duty to disclose” but
seller could voluntarily disclose:
death on the property due to:
1. natural causes
2. suicide
3. accident unrelated to the condition of the property

Do not disclose:
(1) race, religion, national origin, etc. (protected classes of people under federal Fair Housing laws)

(2) Aids/HIV (also protected under TRELA)

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Possible Responses from Potential Buyers
A. Still want to buy
B. Want to bargain for a lower price
C. Genuinely distressed, will not buy. (better than a lawsuit)

“Other” (Written laws don’t say if disclosure is required or not.)
Cautious brokers give clients websites such as the ones below.
. allegations of child molestation in the house (p. 48)
. obnoxious/hostile neighbor
. proximity of registered sex offenders: www.txdps.state.tx.us
. reputation as a “haunted house” (don’t list the Amityville Horror)
. still “at large” criminal in the neighborhood: murder, burglary, rape, robbery, abduction, assault, violence against pets

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Agents: Consult your broker

Brokers: Consult your attorney

When in doubt, disclose.

Class Exercise: go to www.txdps.state.tx.us and look up your home or your family’s home. How close is the nearest registered sex offender?

Chapter 3: Disclosure--Defects

Class Exercise: each student fill out a TAR Seller’s Disclosure Notice

Most real estate-related lawsuits have to do with the condition of the property.

Latent defect
Not trivial or insignificant (foundation, termites, roof, flooding,)
Not “readily discernible” (not easy to find) to the public
Must be disclosed, if known to seller or licensees in the transaction

How to avoid problems/lawsuits:

(1) Disclose! Disclose! Disclose! Disclose! Disclose! Disclose!
Seller must disclose any known defects. (Use Seller’s Disclosure Form)
Agents/Brokers must disclose any known defects, no matter who they represent.
Disclose to the principal they represent (“client”)
Disclose to the other party (“customer,” “third party”)

Third party = anyone you do not represent
So not fiduciary duty, but honesty & fairness

(This whole chapter is written from OLD perspective of Sub-Agency:
“If you represent the seller, what duty do you owe the BUYER?”
Under sub-agency, all licensees represented the seller. The buyer was only a third party, and licensees called the buyer a “customer.”)

Obligations to Third Parties: (These are not fiduciary duties)

1. honesty & fairness (Canons of Ethics)
2. disclose known defects
3. disclose agency
4. do not discriminate
5. title insurance
6. tell them to consult an attorney if they don’t understand contract

(2) Recommend Buyer use a licensed inspector
They rely on the inspector instead of you. (think lawsuit liability)
If they refuse to get an inspection, have them sign a statement saying so.
Use of a licensed inspector is a “safe harbor” for real estate agents
do not recommend a specific inspector (creates liability)
illegal to do both jobs in same transaction
never conceal an old bad report (within last 4 years)

(3) If you rely on another source, say so.
Ex: “2400 square feet per HCAD”

(4) Advise Buyer to verify important information

Buyer’s Agent has a duty to require proof from the seller/seller’s agent.

examples:
buyer can pay an appraiser to measure house square footage
ask surveyor to verify extent of easement, total acreage, etc.
Tell buyer to read the restrictions.
Local ordinances
Rural property: wells, septic systems, access
seller who represented there was a warranty

Click here to get more on this essay.....

Stigma -- a perceived “defect” in the property that is not physical but emotional or psychological in nature

must disclose

1. death by accident related to the condition of the property

2. murder on the property
“no duty to disclose” but
seller could voluntarily disclose:
death on the property due to:
1. natural causes
2. suicide
3. accident unrelated to the condition of the property

Do not disclose:
(1) race, religion, national origin, etc. (protected classes of people under federal Fair Housing laws)

(2) Aids/HIV (also protected under TRELA)

Possible Responses from Potential Buyers
A. Still want to buy
B. Want to bargain for a lower price
C. Genuinely distressed, will not buy. (better than a lawsuit)

“Other” (Written laws don’t say if disclosure is required or not.)
Cautious brokers give clients websites such as the ones below.
. allegations of child molestation in the house (p. 48)
. obnoxious/hostile neighbor
. proximity of registered sex offenders: www.txdps.state.tx.us
. reputation as a “haunted house” (don’t list the Amityville Horror)
. still “at large” criminal in the neighborhood: murder, burglary, rape, robbery, abduction, assault, violence against pets

Click here to get more on this essay.....
Agents: Consult your broker

Brokers: Consult your attorney

When in doubt, disclose.

Class Exercise: go to www.txdps.state.tx.us and look up your home or your family’s home. How close is the nearest registered sex offender?

Agency: What this course is about

Who does the licensee represent?
seller? buyer? both? neither?

Theory of agency seems simple.
Application is not.
What you can and cannot say, do, disclose…….

Critical thinking—think on your feet

small group work-- lawsuits—“examples”--stories
Imagine think—feel—react
Licensee: dishonest?
not knowledgeable?
negligent?
honest mistake?
where did they go wrong? What
should they have done?
How fixed it w/o a lawsuit?
Agree with court? Disagree? Why?

Lawyers disagree—grey areas—ok disagree /me

discourage—car accidents—education reduces risk

Chapter 1

The Texas Real Estate Commission (TREC) is a consumer protection agency. (To protect the public from us! )

TRELA The Real Estate License Act
1939--first Texas real estate licensing law

TREC--Texas Real Estate Commission www.trec.texas.gov
1949—TRELA (law) established TREC (the state agency)

2 levels of license:
Salesperson
Broker
Licensing requirements
Get Brokers License and degree

Canons of Professional Ethics (from TREC) see page 229 of textbook
Q: 5 articles
Q: be able to recognize the duties
Expect questions on licensing exam too. (TREC takes seriously)

Good Ethics is Good Business!!! Why?

Online Orientation--Eagle Online:

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