S.E.C. Real Estate Observer

In the late 1950s, Richard R. Reno of San Diego, California, suggested to the National Association of Realtors (NAR) that some type of exchange group be set up under the umbrella of NAR. The existing International Traders Club didn’t have much structure or function. A committee was formed to study the idea, and Richard Reno […]

 Editor’s Note:  This article first appeared in the February 1973 issue of the Real Estate News Observer So you do not want to become an exchangor? Many brokers and salesmen feel that they do not want to spend the time, money, and effort to educate themselves in the specialized field of real estate exchanges. Fine, […]

In response to inquiries about the dangers of over-creating paper above the reasonable market value of a property, I would like to outline danger areas from a broker’s point of view.

In the beginning the 1950s, a man named Richard R. Reno was preaching a new creative approach to the real estate business.

So you do not want to become an exchangor? Many brokers and salesmen feel that they do not want to spend the time, money, and effort to educate themselves in the specialized field of real estate exchanges. Fine, exchanging isn’t for everybody.

Modern real estate is much more than just selling property. The client’s objectives, needs and limitations must be thoroughly understood by the client and his Realtor before the best transaction can be designed to meet those objectives and needs. The broker’s job is to bring these facts out through counseling before attempting to market or locate a property for the client.

Many years ago I was returning from a real estate exchange marketing session in Acapulco, Mexico. An exchangor from San Jose California told me about a policy his firm had developed concerning new listings. Their listing agreement required the seller to provide their firm with a current Preliminary Title Report (Prelim) in many states called a Commitment To Insure, at the time they listed the property. This report shows any liens of encumbrances on a property, items which are vital to know about when marketing or transferring title to the subject property. Some of these items can affect the priority of a mortgage on the property as well. In California most title companies will honor the cost of a Prelim for up to two years and credit its cost against the premium paid later for the title policy.

I had negotiated a price of $295,000 on 4+ acres of unimproved commercial land in southern California. The buyers were willing to pay $52,000 cash down and wanted the sellers to carry the $243,000 balance on a note secured by a first deed of trust with payments of $2,478.49 or more per month including 8.5% interest with the entire balance due and payable in ten years from close of escrow […]

Editor’s Note: This article was first published in the December 1972 issue of the Real Estate Observer. The sale of a listing doesn’t begin until a prospect says, “Yes, I’d like to own that property.” The buyer is a “taker.” Now, the broker must put together a transaction with which both parties can live. This […]

Introduction: During our meeting in November in Ontario Bill Broadbent gave us a terrific talk regarding the vision and the future of the S.E.C. Education Foundation. I asked Bill to give me a synopsis, and he has done so. It says much more, with much more credibility, than anything that I could write for the […]