I was writing a class for the MN Realty School and thought these would be good topics to write about so real estate agents could perform their jobs easier, more efficiently and with more confidence. In order to present the material, I would need to become proficient in the topic. Have you ever attended a class where the instructor/ trainer didn’t have mastery of the content? It is painfully obvious when they don’t know more that the audience and it worse that watching paint dry to sit there for four hours.

There are many ways to learn how to perform a task or job. Some adults learn one way while others learn another way. So, I did what many people do today. I decided to read the instruction manual! I downloaded the User Manual to my laptop and started reading. As I started reading page 1, I remembered that I had to return an email to a Course 1 student. So, I stopped what I was doing and opened an Internet browser and dashed off a quick email. OK. That’s done. Let me get back to reading. I returned to the manual. I got the second paragraph on page 1 when I realized that I needed a warm-up for my coffee.

These types of distractions made it impossible for me to read the entire manual. I needed to find another way.

I asked a real estate agent to show me how to use these electronic form completion programs. We set a time aside. We met at the MN Realty School and she opened her laptop and proceeded to demonstrate the usage of the programs. After logging into MLS, she opened Zip Forms and opened a ‘packet’ of Wisconsin Offer to Purchase. She moved filed back and forth showing me how she has shortcuts to make her life easier when using Zip Forms where she takes the flibbity gibbit file over to whatchamacallit application and downloaded – I was LOST the moment I became a spectator.

Not wanting to be rude, I followed the best I could. My mind wandered about working on Pulse Portal, getting a car wash, etcetera.

Seeing that reading the manual didn’t work so well and being a spectator was not in my wheelhouse, I went to an online video website to watch the video on how to set up my account. Like many people today, Youtube has become a wonderful tool to do things. It was magical. I opened a couple of browser tabs while the video played, paused the video so I could perform the task, returned to video for more instruction—I was delighted. It was so wonderful that I watched a video on how to get the Maytag dryer to stop squealing during the dry cycle! I replaced the belt with ease in 15 minutes.

The moral of the story: Learning is different for everyone. To apply a cookie cutter approach is not fair to the learner. Telling a new agent that the state-required exam should be taken as quickly as possible after Course 1 is not fair to a kinesthetic learner who learns by ‘doing’. Our courses 2 and 3 are designed to help the kinesthetic students learn to ‘do’ the things we read as ‘theory’ in Course 1.

That’s why we adopted the slogan to ‘Enter as a Student, Leave as an Agent.’ Mike Brennan

This year, the state of Minnesota has made energy efficiency a mandatory topic. In the course called “Agency, fair housing and energy efficiency,” students will learn about agency Law, its history, foundation, and Minnesota License laws regarding agency relationships in a real estate transaction. This course will also look at federal Fair Housing law, its history, laws, and regulations. Prohibitions under the federal Fair Housing Act and the Minnesota Human Rights Act will be covered.

The energy efficiency portion of the course will cover the importance of home energy assessments in existing homes and an overview of the Minnesota market for energy efficiency in new homes and building codes. It will also cover the need and importance of a pre-construction HERS report and provide resources for more information.

An important question that agents will ask is “Why does energy efficiency matter?” The answers are profound. Instead of buying a property with $200/month budget for gas and electric, why not look at an energy efficient house where the monthly bills are $120/month. That extra $80 and design can do several things for the average homebuyer. Imagine applying that extra $80 toward the principal of your loan. A lender could extend their lending power to the buyer and approve them for a higher loan. There are numerous possibilities.

Frequently, agents will ask “What makes a home green?” By using reclaimed and reused material that are still purposeful, we are not using more natural resources to build. By framing a wall 24” on-center versus 16,” a builder would be using less lumber. Photovoltaic panels, wind turbines, solar water heating and other technologies are making significant advances in their use for homes.

When doing a home energy assessment for existing homes, a homeowner can discover the air leakages, heat loss and more to be able to remedy the problems and thereby save money. RESNET inspectors perform investigations to determine the HERS score (Home Energy Rating System). The homeowner can obtain low interest rate loans to perform work that will make the property more energy efficient.
In an age where heating, cooling and electric costs continue to rise, a prudent homeowner would want to make sure there is no waste. These audits prove useful in reducing costs.

This course exposes licensees to the basics of energy efficiency and allows the agent to begin to discover resources available for their clients. While climate change and energy costs change, so should the licensee’s knowledge about such important matters impacting real estate.
We won’t be planting lemon trees in the Boundary Waters Canoe Area anytime soon. But we are seeing seed catalogs changing their ‘planting zones’, the Navy is concerned about the loss of the Norfolk Virginia Dry Docks due to the rising ocean levels and the country of Indonesia is moving its’ capital to Borneo (due to Ja karta sinking into the ocean). These changes can be devastating and/or impact housing costs greatly. Mike Brennan

This year, only one class is needed to fulfill the state requirements. This half-day course covers an hour of agency and an hour of fair housing also. There is no additional broker module required.

In addition to the fair housing and the agency hours, the other topic covered will be about green technology and using these methods to build. The climate is changing and so are the ways the builders are building. This course teaches a variety of interesting topics that consumers would like to know about.

This course covers Agency Law, its history, foundation, and Minnesota License laws regarding Agency relationships in a real estate transaction. This course will also look at federal Fair Housing law, its history, laws, and regulations. Prohibitions under the federal Fair Housing Act and the Minnesota Human Rights Act will be covered. The energy efficiency portion of the course will cover the importance of home energy assessments in existing homes and an overview of the MN market for energy efficiency in new homes and building codes. It will also cover the need and importance of a pre-construction HERS report and provide resources for more information.

As licensees see fields added to Multiple Listing Systems around the state, questions arise about the content, the measurement and the input for the field. A new score field has been added to most MLS and it reflects the Home Energy Rating System or HERS for short.

DNR Forestry experts expect Minnesota’s climate to become less suitable for aspen, paper birch, tamarack, and black spruce. On the other hand, it’s projected to become more suitable for species such as American basswood, black cherry, northern red oak, bur oak, sugar maple, red maple, and eastern white pine. These changes will impact housing components, utility bills and consumers.

By learning more about the environment and the science behind, consumers can benefit. Making a dwelling more energy efficient is appealing to many buyers. Consumers are concerned that as energy costs increase, so does their monthly expenses. A house is a large consumption device that can deprive a person’s purse and wallet of much-needed cash. Programs exist to lend people money to make energy efficient improvements. Houses are moving toward a net zero point where the property produces more than it consumes.

These interesting topics are the tip of the iceberg as things like climate and environment change. Keeping on top of codes and the news would be prudent for a licensee. This class could provide some much-needed insight into Building Green. Mike Brennan

The required module is typically a topic that is germane to the industry at that point in time. When foreclosures and short sales were a large part of the housing inventory, the required module was about that very topic. Imagine learning about something that is relevant to the consumer at that point in time!

The Department of Commerce has announced the new module for the July 1, 2019 to June 30, 2020 season. The title of the class is: Agency, Fair Housing & Energy Efficiency. This is the only required class that a nonexempt licensee would need to take in the time period of July 2019 to June 2020. This course includes one hour of agency and one hour of fair housing!

Please note that commercial-only salespersons and brokers are exempt from these module requirements and must apply for the commercial-only waiver when the broker submits verification of this between April 1st and June 30th each year on Pulse Portal at www.pulseportal.com.

This course covers Agency Law, its history, foundation, and Minnesota License laws regarding Agency relationships in a real estate transaction. This course will also look at federal Fair Housing law, its history, laws, and regulations. Prohibitions under the federal Fair Housing Act and the Minnesota Human Rights Act will be covered.

The energy efficiency portion of the course will cover the importance of home energy assessments in existing homes and an overview of the MN market for energy efficiency in new homes and building codes. It will also cover the need and importance of a pre-construction HERS report and provide resources for more information. After attending this class, real estate licensees will understand Agency Law and MN license laws on agency relationships; learn about the Federal Fair Housing Act; understand the Minnesota Human Rights Act; understand prohibited acts under Fair Housing law; understand energy efficiency and surrounding laws; be better equipped to serve buyers and sellers in today’s complex real estate transactions; why Energy Efficiency Matters; what makes a home green?; home energy assessments for existing homes and justifying costs: pre-construction HERS report.

This course should prove to be enlightening and educational when it comes to the important considerations that consumers make when they are making a buying decision of the largest and costliest item in their life. Attendees will be given a quiz at the end of the course and a passing grade of 75%+ will allow the credits to be applied.

Look for the course in the near future from your favorite educational provider! Mike Brennan

As the Minnesota legislature considers new forms of representation for real estate professionals, a key well thought-out ingredient is educating the licensees about the changes. Many people are petitioning each side of the discussion-pro and con. Both sides have been careful to contemplate the time required for the licensees to learn about the new ways we may possibly be representing buyers and sellers. Concerns are raised for each argument. The question sometimes begs ‘Is it really that complicated?’

As we teach classes and introduce the topic and its potential impact, many, many questions are raised. Designated agency is a form of representation acknowledged in states like Wisconsin, Iowa, North and South Dakota. In 1992, when agency disclosure became a ‘thing’ (or more appropriately a ‘law), there was confusion and resistance. The disclosure form has changed a little since 1992 but the basic tenet remains the same. Disclosure whom you represent (if anyone) and what choices a consumer has in a being represented in a real estate transaction. This has been the norm for 27 years.

Yet in 2019, licensees are expressing concerns about reluctance of the consumer to acknowledge receipt of the disclosure, confusion about the form and a misunderstanding of its’ purpose. While the removal of the ‘sub-agency’ relationship did not ruffle feathers or cause a slight distress, the addition of designated representations may be a different story.

Education works well when adults come to the continuing education class with a desire to learn something. In our Courses 1, 2 and 3, our students are like sponges absorbing as much as they can. Unlike how children learn, adults come to these classes with an expectation of career change, enhancement or improvement. Hopefully, real estate professionals will embrace the learning environment as a method of better taking care of consumers and professional improvement.

As the House of Representatives and the Department of Commerce weigh the changes with the new forms of representation, we will have to wait and see what the decision and outcome will be. If the status quo prevails, it would be prudent for a real estate professional to identify the skills lacking and pursue the classes necessary to improve competencies.

If the laws pass and Senator Draheim’s bill passes, many forms will change, relationships will be redefined, and things will change forcing competencies to be learned. It would be better to approach the event as one of ‘how will I gain stronger skill sets to better serve my client?’ and not simply fulfilling a seat-time requirement.

With the change potentially coming, there will be opportunities to learn. Mike Brennan

I remember a time when there were no seller disclosures in the listing of property. The trade association introduced a 2-page form for a seller to complete and provide to the buyer back in the 1990s. After a while, the form grew to 3 pages. When I was privileged to be a member of the state association Executive Committee, I recall sitting with a former Chief Executive Officer. I asked “Glenn, why are we making the form so much longer?” and his reply resonated with me.

As the form continues to grow and state laws now mandate the seller to comply with the disclosure laws of either disclosing, hiring a third-party inspector or doing a waiver, I enjoy watching the ‘light bulbs’ lighting up by the attending continuing education classes! Many times, as we teach courses on disclosures, agents are unaware of the value of the forms provided by the State Association of REALTORS®. These forms allow a seller to complete the forms with easy-to-use checkboxes, blank lines and preprinted material. These are copyrighted forms which are not to be used by people outside of the REALTOR® community. These disclosure forms are valuable to your job as a REALTOR® member and should be handled and completed only when a REALTOR® is involved.

In meeting the disclosure requirement, any seller of a residential property of one to four family housing (whether they are attempting to For Sale by Owner OR hiring a real estate professional) must abide by these laws. Every residential seller has three choices:

1. A seller must make a disclosure of things they are aware of in the property that may adversely impact an ordinary buyer’s use and enjoyment of the property. These material facts exclude title holders who are HIV+/AIDS, death (other than murder), ghosts, community-based facilities and the like. The measuring yardstick is “Is the seller aware of any issues other than the excluded items?” If they are not aware of issues, they don’t need to disclose! (How can a person disclose something they are not aware?)
2. A seller may hire a private home inspector to prepare a report about the property. The seller and their agent would provide that report to the purchaser BUT if the seller is aware of something AND it is not on the report, the seller must append the report to include the material fact.
3. Seller and buyer may agree to a waiver of material facts. There is no recourse for the seller if the buyer discovers the seller was aware and did not disclose.

Any one of these three may chosen by any seller. Of course, a disclosure would be considered a positive contribution in value and could add to the time/value of the sale.

Certain items may never be waived and must be disclosed. Wells, subsurface sewage treatment systems, mold, radon, predatory offender website location, environmental issues, airport zoning and cemetery disclosures must be made. Hence the reason the REALTOR® Alternative form is several pages long. It includes the mandatory statutory disclosure items.

By attending courses and learning how to counsel and coach a person through the complicated maze of forms, a real estate licensee provides values and benefits to their client.

What resonated with me about the statement of making the forms longer? “by having these additional requirements of disclosure, the value of real estate professionals becomes integral and essential to the sale/purchase and the buyers become better homeowners by being informed.” Mike Brennan

A person who seeks continuous improvement is one who seeks advancement and sees issues as opportunities. Growth or decline are the choices a person will always be presented, and the choice is theirs.

One of attributes of those who seek improvement is education. By bettering an understanding of a trade, a person enhances their life by providing more value to the client/customer and greater job satisfaction for themselves. As a real estate professional, the trade is always changing so continuous improvement is almost mandatory. Remember when the Great Recession of 2008 hit, and housing was taking a bumpy ride, values were dropping, mortgages were higher than the value of the property? Some people took this as an opportunity to learn how to perform short sales, manage foreclosed properties and learned other skill sets to ‘bob and weave’ as the market shifted. These associates made an income while those who sat on the sidelines waiting for the tide of Recession to recede struggled. By education, these associates improved. The market is always changing, and now new business models, new companies and new concepts are introduced at the speed of light and associates who do not adapt and adopt will struggle and fail.

How does education assist in the growth of the real estate professional? By learning new skills, the agent value statement improves greatly in the minds eye of the consumer. Imagine taking a course on staging a property and developing your eye for interior design: Your value to the consumer becomes greater in that you can demonstrate a service other people may not be able to provide or must pay another professional to perform. You save money by not hiring the stager and the listing may sell more quickly than it would have otherwise not staged.

As we age, the need to improve becomes greater. I ponder frequently about the sensibility of my returning to college for one more degree at my age (Know that I received my AARP membership a few years ago!). I wonder if taking my evenings and pursuing a Juris Doctorate in Law would mean anything to my clients, colleagues and family. The obvious answer is that it would! Yet, the hard part is looking forward and projecting feelings into the future. And the future is unknown. It would take 3 years of my life and I wonder what it would be like, the benefit of the choice and the outcome it may present. Regardless of my decision, I will be three years older in three years with or without the education. How does a person reconcile obtaining education? I believe that the goal of any activity is not for the simple achievement or bragging rights. It should be intrinsic and noble.

Recently in a Course 1 license course, a student sincerely asked the following question about continuing education: can I take more than the required 15 hours a year?

My smile was from ear to ear.

Minnesota has an unusual calendar for licensees. The Minnesota calendar runs from July 1st to June 30th. Continuing education requirements are for at least 15 hours of approved courses are completed by June of each year. Part of the courses taken must be an identified required module. This July to June requirement for this year is Risk Management.

Wisconsin uses calendar years (January to December) for the continuing education and renewal calendars. All licensees in Wisconsin are required to complete 18 hours of classes. There are 4 required classes and licensees must choose two other classes as electives. These credits are due at the end of even numbered years.

As I was teaching some Wisconsin continuing education courses, the licensees were expressing confusion over the dates and the credits. Hopefully, the dates are now more clearly understood.

When I was asked about the credits and if this state recognized that states credits, I sensed a great deal of confusion. My concern to address is “how does a licensee know if the training class they are in will provide credits for continuing education?” The answer is surprisingly simple.

If there are handouts, there would be a statement in the handout which specifies the state the course is approved for credits and the number of hours the class will provide. If there are no handouts, the instructor will start the class with a statement of the above: States the course is approved the hours as well approved. In the advertising of the courses, there will be a statement identifying the credits (sort of like a movie rating, the statement must be present if there are credits being offered)

The maintenance of the information is handled by the sales licensee. In Minnesota, there is a website called Pulse Portal which is the collective of all courses taken regardless of the course education provider. Course education providers (like MN Realty School) must report the hours of the class completion within 10 calendar days of course completion to the site. Associates may review their information under their “transcript” to identify the number of hours completed and hours required.

In Wisconsin, at the end of course, students will receive a course completion certificate identifying the class taken and the number of hours they have been given credit. Licensees are supposed to keep their course completion certificates for a total of 5 years after completion. Education providers will make their course completion certificates available in the event the licensee needs them and may charge a nominal fee for the issuance of a replacement certificate.

When renewing your license in Minnesota, the broker will log into the Pulse Portal site and check to see if the system has recorded the appropriate number of hours and classes taken. If the licensee has met the education requirement, the license may be renewed by paying the renewal fee.

When renewing your license in Wisconsin, a licensee would complete a Form 2920 listing the courses taken and the form would be signed. An online renewal exists on the Department of Safety and Professional Services website.

Word of caution: If there was a change of address or name or a criminal conviction, that information must be updated at the time of renewal in either state. (Both states have requirements for the reporting of a criminal conviction within days of the conviction: 48 hours in Wisconsin and 10 calendar days in Minnesota). Failure to update changed information or supply the conviction information may result in loss of license.

While it may be a slow season, it is a great time to get caught up on all your renewal requirements!

The question to ponder is: Does continuing education assist in creating a more competent professional?’ That is a tough question to answer. In some instances, educational experience does assist in exposing people to topics and theories that prove useful in their trade. The question is best answered “it depends.”

By being introduced to a theoretical concept, a student is presented with two options: (1) pay attention, gain and understanding and thus change behavior; or (2) do nothing.

A prime example in our industry would be the exposure given to a real estate professional on a new form or disclosure requirement. Minnesota became a property disclosure state in 2002. (see Legislative Chapter 306-S.F. No. 2697). We saw a significant amount of changes of what must be disclosed, how it can be disclosed, can a waiver be provided, how the agent handles material information, etc. over the years.

So, licensees became aware of the fact that condition of property needed to be disclosed and forms were created to reflect state statute. The wording was changed to reflect ‘material facts’ instead of condition. Then, we added airport zoning, methamphetamine production and more items.

Eyes begin to roll, yawns are noticed as we start teaching a new disclosure course. Instructors notice that some of the licensees are wondering why we are teaching the same thing over and over and over while others are taking notes and asking questions. The answer to the question ‘does education assist in creating a more competent professional?’ really depends more on the recipient (the licensee) and not the messenger (the instructor or content).

Course content can fulfill one of two purposes. A course can convey meaningful content and be a beneficial use of time or the course can have less meaningful content, run its time and fulfill the hours requirement. In either situation, a pearl of wisdom conveyed is always an opportunity.

I recall teaching a course at an education provider and I looked at the new agents glazed eyes, slumped shoulders and wondered why I was teaching this one particular content. The content was maybe beneficial to one person out of 30. Most saw it as a soft-shoe tap dance to meet the minimum requirements of license education. As I completed the class, books were scooped up and people were happy to be done BUT there was one person who came to the podium with a bunch of questions which they did not want to ‘bore’ the class. We visited for a while and as the instructor, I was happy that the information reached someone.

As far as content goes with adult learners, we have discovered that when we shout “FIELD TRIP” to a listing in Course 3, our licensing students perk up, they become engaged in the class as we perform a live comparative market analysis, set up the preview and caravan to the property.

Wouldn’t it be great if all content made students sit up straighter, conveyed useful information and was engaging and fun? Maybe it’s not always the content that the student needs to rely on to make it worthwhile!

I have met some college graduates who are incompetent, and I have met some dropouts who are extraordinary professionals.

Risk is an inherent thing in our daily lives. It is a risk to simply get behind the wheel and drive to show a listing. But there are risks which should be avoided with simple precautions.

Minnesota has statutory standards of conduct (meaning created by an action of law). When negotiating a contract, specific behaviors are allowed, and some are illegal. To mitigate risk, follow the rules of Chapter 82 of state law. The compensation that a licensee receives can be received in a specific manner and shared in certain methods. An agent takes a risk by accepting a gift card which could be seen as a gesture of gratitude from a client.

Information learned about a client is valuable. While not in monetary worth, the consumer sees their personal data as being invaluable. Federal data privacy rules, the Federal Bureau of Investigation and other rules apply. Some state laws impact the handling of a client’s personal information. An agent takes a massive risk of not handling, disposing and taking care of personal private information.

A course is now required for all licensees to learn how to mitigate risk. All the topics of state law about compensation, negotiations, disclosures and data handling are covered in this 3.75-hour course. This one half-day course is the only required course all licensees must take between now and June 2019 (there is an exemption for those who have identified themselves as a commercial only licensee on the state’s website at Pulse Portal). This course also covers the one-hour broker module.

Once I had a student in Course 3 ask me, “How do I avoid all risks in this business?” and my reply was that you cannot avoid all risks. However, you can lower the chance of a bad outcome by taking sensible precautions, learning how to effectively perform the task of being an agent and identifying what is an acceptable risk/reward ratio.

The old saying is “With great risk comes great rewards.” While that statement is an accurate truism, it can also be applied to a statement that “Bad risks can be identified and avoided.” Many real estate licensees learn on-the-job and need to locate resources which would help. This course will assist in all these areas. Administration and risk management is a component of real estate transactions and property management. As a property manager, you›re contracting with an owner to market and rent their property, collect the rents and remit them to the owner, and to manage the property, from maintenance to tenant rules enforcement. As a sales agent, you are handling the largest financial transaction of that client’s life. Lowering risk to make the consumer safe and sound is a vital part of our duty and responsibility.

Make sure you find a provider who will not just meet the minimum requirement of this class. Learn from an educational instructor to better your business.