What’s first: flying cars or instant home ownership?

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flying car

This headline is blatantly stolen from this article that I recommend for your reading pleasure. This blog, written weekly since late 2014, has two goals: (1) to keep South Carolina real estate lawyers out of trouble; and (2) to keep South Carolina real estate lawyers in business. This article, about the future of home ownership, is recommended to advance the second goal.

Julian Hebron, the author of this article, is the founder of The Basis Point, a sales and strategy consulting business for consumer finance and real estate companies. He has extensive experience in real estate, lending and financial services. Investopedia touts itself as the world’s leading source of financial content on the web. Investopedia commissioned Julian Hebron to explore what home buying, improving and selling will look like in the next twenty year, and he said he jumped at the chance.

The article describes a vision of home buying for consumers in the future:

  • Pull out your phone and search for homes.
  • View homes using full 3-D modeling and video so you can truly “tour” the home right on your phone.
  • See every specification about the home, neighborhood, schools, restaurants, crime, taxes, etc.
  • Tag the homes you like to stay organized.
  • Get notified over time on sales and price changes of homes.
  • Make an offer on a home by pushing a button.
  • Avoid long appraisal process because the home’s value is verified by date and 3-D modeling/video, and this automated valuation method is accepted by all lenders.
  • Close on the home instantly because your loan is always approved via your secure blockchain wallet with realtime income, asset, debt, and credit score data. All you do is schedule licensed and reviewed local movers and contractors to facilitate your move.
  • Schedule moving day food delivery from recommended restaurants in your neighborhood.

And here is the description of home selling in the future:

  • Fill out a short form on your phone saying you’d like to sell your home.
  • Receive a home purchase offer in 1-2 days, and close in as little as seven days.
  • Or shop and hire a licensed and reviewed local realtor to list your home if you don’t like the instant offer.
  • Get asked if you’re purchasing a new home, and, if so, get prompted to follow the home buying steps above.

How close are we to this vision? The author isn’t sure but plans to write future installments to dig deeper into each player in the vision.

Can we stay in the market if this vision comes true? 

I believe we can. I believe our closing law firms should establish strong systems to document processes and keep them current in an effort to be able to nimbly adjust to the changing market. I believe we should stay on top of changes in technology because technology will certainly be a huge driver in these changes. I believe we should continue to establish strong relationships with the players in the real estate industry, particularly the real estate agents. We will all be fighting for business as the market changes, and keeping current on the available information and the current players will be vital to remaining in the game.

This blog will continue to provide South Carolina real estate lawyers with current information to support these efforts. Watch this space!

SC DOR announces implementation of tax lien registry as of Nov. 1

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SC tax liens will no longer be filed in individual Counties

This blog previously discussed tax lien legislation effective March 28, 2019 that will change the way titles are examined in South Carolina. The South Carolina Department of Revenue has announced that the change will be effective November 1.

The announcement indicates the statewide tax lien registry will have a similar look and feel to the Mississippi Department of Revenue Lien Registry, which can be accessed here.

The legislation, an amendment to South Carolina Code §12-54-122, is intended to allow the Department of Revenue (DOR) to implement a statewide system of filing and indexing tax liens centrally, that is, “accessible to the public over the internet or through other means”. Once the new system in in place, the clerks of court and registers of deeds will be relieved of their statutory obligation to maintain newly filed tax liens.

The new law states that it is not to be construed as extending the effectiveness of a tax lien beyond ten years from the filing date, as set out in South Carolina Code §12-54-120.

When the new system is implemented, the law requires a notice to be posted in each county where liens are generally filed providing instructions on how to access the DOR’s tax lien database.

We will keep you posted as more details become available. Title insurance company underwriters will certainly weigh in on this issue.

Do you and your employees work remotely?

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Check out these network tips for remote employees

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Our office has been involved in workflow studies for the offices of our attorney agents, and one point that comes up often is that allowing employees to work at home increases employee satisfaction and retention. We’ve witnessed many paralegals permanently move to remote locations and successfully retain their jobs. Telecommuting seems to work successfully in many instances.

In our own office, all our employees have the capability to work remotely. We learned when our office building suffered a fire in 2012 that the ability to access our network from remote locations allowed us to continue our business without interruption. The day after the fire, we disbursed the funds for a large commercial transaction for an agent from my kitchen at home!

And since South Carolina routinely finds itself within the maze of the spaghetti models during hurricane season, the ability to work remotely is important if not necessary to maintain contact while taking care of school children and hunkering down at home.

American Land Title Association (ALTA) published an article on September 5 attaching The Center for Internet Security, Inc. (CIS) Telework and Small Office Network Security Guide.

This 25-page paper provides useful, up-to-date guidance on keeping your networks safe when employees are allowed remote access. The guide provides recommendations for buying equipment, setting up networks, setting up devices, securing home routers and protecting against digital threats.

The ALTA article refers to a Forbes study that found 38 percent of teleworkers lack the technological support they need to do their jobs. Securing devices and networks that allow telecommuting is critical. The guide includes a network security checklist and tells users how to map security configurations to provide cybersecurity protection at remote locations.

Thanks to ALTA for pointing us to this valuable resource, and thanks to CIS for publishing it!

A glimpse into the future of residential real estate sales

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Here’s what may happen when iBuyer companies enter our market place

iBuyers

I read an interesting article from Forbes recently by John Wake entitled “The Surprising Way Real Estate Agents are Adapting to ‘iBuyers’ Buying Houses Directly From Sellers.” I invite you to read the article in its entirety here.

The article focuses on residential real estate sales in the Phoenix market which the author calls “ground zero for the iBuyer explosion.” What does he mean by that? Apparently, the largest iBuyer companies, Opendoor, OfferPad and Zillow Offers, either started their operations in Phoenix or concentrate their efforts there. He estimated five to six percent of houses that change hands in that market are sold to iBuyers.

The article focuses, as its title suggests, on how real estate agents are adapting to this disruption in their market. But I find the article instructive to South Carolinians on the topic of how these internet sales are orchestrated and how they might affect sellers in our market when this disruption migrates east to us.

The author says that a homeowner who seeks to sell a house via an internet company must first complete an online form. An offer is typically made within two or three days. If the homeowner accepts the offer, inspectors will be sent to the house and will come back with a list of repairs and estimated costs for the repairs that the buyer requests before the closing.

As in our current process, the seller can agree to make the repairs, to reduce the price of the house to cover the cost of the repairs, or to terminate the contract.

The author suggests that real estate agents commonly complain that iBuyers tend to offer less and to ask for more repairs than traditional buyers. In other words, the seller makes more money in traditional sales involving local real estate agents.

The flip side of that coin is, of course, that closing with one of the iBuyer companies is more convenient than the process in our marketplace. A seller doesn’t have to get the house ready to sell, stage it, keep it clean for showings, or leave home for showings and open houses. The closing date may be more flexible, and there probably will not be contingencies for appraisals and financing.

How are real estate agents in Phoenix adapting? According to Mr. Wake’s article, real estate agents are assisting sellers by obtaining multiple iBuyer offers, analyzing and explaining the offers, discussing the options of accepting one of the iBuyer offers or beginning to market the home in the traditional manner, and coordinating everything with the iBuyer or traditional buyer, including repairs.

In short, real estate agents are attempting to become iBuyer experts in addition to traditional home sale experts.

Real estate lawyers, we need to be ready for this disruption when it hits us. We will want to be able to explain the changes in the market to our clients as well as to educate our real estate agents on how to stay in the game. Let’s keep our eyes and ears open! I’ll help!

FCC Publishes Scam Glossary

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The Federal Communications Commission recently published a Scam Glossary, which you can access here. The glossary provides a helpful description robocalls, spoofing scams and related consumer fraud.

The FCC tracks these nefarious items through consumer complaints, news reports and notices from other governmental agencies, consumer groups and industry sources.

The glossary includes links to more detailed information posted in the FCC’s Consumer Help Center and trusted external sources.

Here are a few of my least favorite schemes from the glossary:

“Can You Hear Me” Scam: Scammers open by asking a yes-or-no question, such as: “Can you hear me?” or “Is this X?” Their goal is to record you saying “yes” in response. They then may use that recording to authorize charges over the phone.

Flood Insurance Scam: After floods, scammers may target hard hit areas with fake calls about flood insurance to steal private information or money. They may spoof a legitimate flood insurance company to appear more convincing.

Google Listing Scams: Some scammers claim that they can add or remove you or your business from Google searches or similar services. These callers, unaffiliated with Google, seek payment for services they can’t deliver.

Jury Duty Scams: Callers pose as local law enforcement, claiming they have a warrant for your arrest because you missed jury duty. They may instruct you to pay a fine by wiring money or using gift cards.

Porting: A scammer gets your name and phone number, then gathers other identifying information that can be used for identity theft. Pretending to be you, they then contact your mobile provider to report your phone as stolen or lost, and then ask for the number to be “ported” to another provider and device. They can use your number to gain access to your financial accounts and other services with two-factor authentication enabled.

Smishing: Short for “SMS phishing”, smishing often involves text messages claiming to be from your bank or another company. The message displays a phone number to call or a link to click, giving scammers the chance to trick you out of money or personal information.

Wangiri/One Ring Scam: When your phone rings only once, late at night, you may be tempted to call back. But the call may be from a foreign country with an area code the looks deceptively like it’s in the U.S. If you dial back, international calling fees may wind up on your bill. Such cons are known by the Japanese term “Wangiri”.

Check out this useful list, share it with your office and your family members. And be careful out there!

Amazon-Realogy partnership is making news in the housing market

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New home buying program not yet available in South Carolina

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According to several news sources, Amazon announced in late July that it will partner with residential real estate services company Realogy Holdings Corp. to launch a new home-buying program called TurnKey.

A TurnKey portal will be available through Amazon’s gigantic retail platform, Amazon.com. Potential home buyers who use that portal will be matched with real estate agents from one of Realogy’s brands like Coldwell Banker, Century 21 and Sotheby’s. Realogy is purportedly the largest residential real estate brokerage company in the country.

Potential buyers will go to Amazon.com/TurnKey and answer four questions about who they are and where they live. They will next get a phone call from a Realogy representative who will attempt to determine what sort of home they are seeking and how serious they are about buying. Information about the best prospects will be sent to Realogy real estate agents.

Home buyers who close with Realogy agents will receive up to $5,000 in products and services. Coupons for $450 – $1,500 in Amazon Home Services like unpacking, cleaning and furniture assembly will be available in addition to between $500 and $3,500 in smart-home products. Purchase of a $700,000 house will be required to receive the top credit.

The two giant companies are interested in finding out whether home buyers will look for new homes in the same place where they already shop for everything else. The credits for products and services will give Amazon a new way to market things it already sells, such as handyman services and smart-home gadgets like Alexa-powered speakers, doorbells and security cameras. The new lead-generating program will seek to help Realogy recruit and retain agents and increase market share.

The new program is starting in 15 markets, including Atlanta, Chicago, Seattle and San Francisco. We’ll have to wait to see how quickly it moves to South Carolina.

HUD accuses Facebook of housing discrimination

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facebook-dislike-thumb.jpgThe U.S. Department of Housing and Urban Development (HUD) announced last week that it has filed a civil complaint against Facebook, Inc. alleging violations of the Fair Housing Act as a result of Facebook’s ad-targeting system. Twitter, Inc. and Google have been notified that their similar practices are under scrutiny.

Facebook’s ad-targeting system allows advertisers the ability to direct messages to target audiences with precision.  HUD charges this system has allowed real estate companies to unlawfully discriminate on the basis of race, nationality, religion, color familial status, sex and disability.

The complaint alleges Facebook is guilty of “encouraging, enabling and causing” unlawful discrimination when it allows advertisers to exclude users by certain characteristics, for example, whether they are interested in Hispanic culture and food, whether they are parents and whether they are non-citizens or non-Christians. Some ads are only shown to women. Other ads may exclude neighborhoods or geographic areas like ZIP codes. Secretary of HUD Ben Carson said using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in that person’s face.

HUD alleges Facebook mines users’ extensive personal data and uses characteristics protected by law to determine who can view housing ads.

This is not the first time Facebook has been in trouble for ad-targeting. An earlier investigation by ProPublica found the advertising practices acted to exclude African American, Latinos and Asian Americans. HUD had filed an earlier complaint last August alleging ethnic groups were excluded from viewing some ads. Facebook took action by removing 5,000 ad target options.

The ACLU was not happy with that result and filed a lawsuit. That lawsuit was settled recently with Facebook announcing substantial changes to its platform including withholding a wide array of demographic information often used as indicators of race. Facebook also agreed to create a tool that would allow users to search for housing ads whether or not the ads could be viewed in individual news feeds.

HUD was apparently dissatisfied with the settlement as not going far enough to remedy housing discrimination and responded with the current complaint.