70,000 Contracts Invalidated

Posted May 16th, 2008 by Joe Kaiser

Your "very simple bill," has completely upended an entire industry . . .

Dear Rob,

By now your office has heard from the Board of Realtors, and you know their number, 70,000.

That’s the existing number of listing agreements that, as a result of your new anti-investor law, have to be rewritten.


Inartful

Because of a lousy four foreclosure rescue complaints your office received in the last five years, 70,000 sellers have to waste an afternoon, meet with their agents and sign all new documentation to relist their homes and properties.

Your “very simple bill,” has completely upended an entire industry, the costs of which can’t help but reach into the tens of millions of dollars.


The Math

I’m figuring, rough guestimate, $100 per listing, to adapt them to the new law..

That includes setting up appointments, sellers and agents meeting, and getting the new docs signed and filed and back into the MLS computer, etc.

And don’t forget costs for gas to drive over to the appointment, or costs to overnight docs, and everything else.

At $100.00 per listing, I am being kind.

$100 x 70,000 = $7,000,000.00

My earlier post pegged the cost of re-training real estate agents at $11,000,000.00.

So, without blinking an eye, without the law yet coming into force, the cost to taxpayer of this state is already pegged at $18,000,000.00 (and unless I miss my guess, we’re just getting started here).

Eighteen MILLION dollars.


Fear Mongering

You put naive, uninformed, misguided AAG’s in charge of creating a “Look at me. Aren’t I wonderful?” law designed to do nothing but feed the endless fear mongering that defines your office.

This grandstanding, at our expense, is really getting old, Rob. Just ask the Board of Realtors.

Seventy thousand listing agreements voided, millions of dollars wasted, and undoubtedly the dumbest foreclosure rescue scam law ever created, crippling the real estate industry in our state . . . and we have you to thank.

I think it’s time we put someone in charge of protecting us from your Consumer Protection Division, Rob. From what I’ve seen, they are completely out-of-control.

In the arena,

Joe Kaiser


4 Responses to: “70,000 Contracts Invalidated”

  1. Loya responds:
    Posted: May 18th, 2008 at 4:15 pm

    Nope, no comment needed. His (Rob’s) actions speak perfectly for him. Another grand-standing…oops I mean, oustanding job!

  2. anemonehead responds:
    Posted: May 18th, 2008 at 11:23 pm

    It’ll be VERY interesting to see what other “unintended consequences” result.

  3. Brad Crouch responds:
    Posted: May 25th, 2008 at 1:09 pm

    Joe,

    Your 18 million dollar estimate is really only half of the cost.

    This law will undoubtedly be challenged as being unconstitutional and will most certainly be “struck down”, eventually.

    Then the costs will occur AGAIN to put everything back to where it was originally.

    So it will actually cost the taxpayers somewhere around 36 million dollars, in total.

    The good news is that this may dissuade other states, like mine, from frittering away so much money in an attempt to save us from ourselves, as though we were mindless.

    Brad Crouch

  4. Micha-el responds:
    Posted: May 30th, 2008 at 11:02 am

    But I don’t want to be a “Distressed Property Consultant” Mr. Wizard!

    Holy unattended consiquences (is anyone home?) better knock again!

    A point was made at the disclosure meeting (NWMLS) that Distressed Property Owners were not a procted class (HUD/Fair Housing) and as such MAY be discriminated against ie I ain’t touching you.

    Owners must warrant and disclose their status as to being “One of those” I can decide if we must call and confirm that our clients made their most recent payment (s) and are not 30 days in the rears, they then become a “Distresser” and take on a REAL protected class, under the Consumer Protection Act, required disclosure in MLS is now required & I have graduated to a level of “Fiduciary” in my brokerage representation, you know the level which can be breached in your sleep… thus opening you up to a CPA lawsuit with a new $100,000 limit + attorney’s fees. What happens when you cure… all is now reversed and you are no longer “Distressed” so RobsBill has no effect.

    As a preacher man once said… “I’ll see you when the smoke clears”


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