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Small real estate businesses, agents and their clients are increasingly becoming targets of sophisticated cyber scammers, according to panelists at a risk management forum at the 2015 National Association of REALTORS® (NAR) Conference & Expo held last month in San Diego. The panelists discussed potential threats and offered tips for agents to protect themselves, their business, and their clients from cyberattacks.
NAR technology policy expert Melanie Wyne said the news often focuses on large companies falling victim to hackers, but small businesses, which often lack the vast technology and legal teams of larger businesses, actually experience majority of attacks.
“Small businesses need to pay just as much attention as large companies to possible cyber threats,” said Wyne.
Darity Wesley, founder of the Lotus Law Center, said hackers are seeking personal identifiable information, such as credit card or bank account information, login credentials, employment details or a physical address, email address, and phone or social security number.
“Identity thieves can do a lot of damage with this information; your credit and whole life could be ruined,” warned Wesley.
Wyne said businesses can suffer financial harm from expenses resulting from a data breach, legal risks from lawsuits from clients or others impacted by the hack, and reputational risks from having to publicly disclose the hack. While cloud and free public Wi-Fi services are convenient for business, they are never completely secure.
Wyne recommended researching the level of security these companies are employing before using their services and storing information or documents into them. She also recommended agents ask these services to be indemnified in case the service is hacked. Anyone using a free email service for business should encrypt emails with client data.
Jessica Edgerton, NAR associate counsel, said in recent months, real estate professionals have reported an upswing in spear phishing, a particular wire scam where a hacker breaks into an agent’s email account and obtains information about an upcoming real estate transaction. After monitoring the account, the hacker will send a mock email to the buyer as they near closing, posing as the agent or someone from the title company and requesting that the buyer wire transaction-related funds.
Edgerton related one situation in which a first-time buyer lost $13,000 when they wired funds to what they thought was the title company. Another attempt to scam a buyer in the Philippines out of $800,000 was intercepted on its way to Russia.
Edgerton recommended agents inform their clients at the beginning of any transaction about this scam. If buyers receive an email about wiring funds, they should immediately call their agent on the phone and confirm.
“It’s a fail-safe measure to call first before you send the money,” said Edgerton.
Wesley added, “It is good basic practice and most important to always communicate with your buyer.”
Although NAR has been advocating a uniform federal law for years, the majority of laws currently governing data security are at the state level, so it is important for agents to know the state laws regarding data security and privacy that affect their organization. California adopted the first data security breach notification law in 2003. Nearly 40 other states have since adopted similar laws modeled after the California law.
The panelists recommended strong passwords, developing a data security program, and implementing safeguards to protect private data. A privacy policy disclosing some or all of the ways the business collects, shares, protects, and destroys personal client information is also good business practice.
The panelists emphasized in today’s Internet world, “you are never completely secure.” With cybercriminals becoming more sophisticated, businesses constantly need to keep abreast of new data security enhancements.
SILVAR Executive Officer Paul Cardus, NAR Director Leannah Hunt, SILVAR President Chris Isaacson and President-elect Karen Trolan (seated) proudly show the NAR Platinum Award for Global Achievement they received on behalf of SILVAR’s Global Business Council at the NAR REALTOR® Conference & EXPO in San Diego this month.
SILVAR leadership with CREBA members and NAR manager of Global Business Development and Outreach Joe Schneider and NAR President’s Liaison to the Philippines Jennifer Tasto (both far left) celebrate their awards.
For the third year in a row, the Silicon Valley Association of REALTORS® (SILVAR) has earned the National Association of REALTORS® (NAR) Platinum Award for Global Achievement. The platinum award is the highest distinction presented by NAR to an association for having demonstrated through its global business council exceptional commitment to building members’ awareness of the global and multicultural business opportunities in their local markets.
SILVAR, a professional trade organization representing over 4,500 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, is the only association in Northern California to achieve platinum council status since the program’s inception in 2011. NAR stated SILVAR’s global council “demonstrated the utmost commitment to helping members capture their share of the global real estate market in the United States.” SILVAR leadership received the prestigious award at a special international dinner during the Nov. 13-16 NAR REALTORS® Conference and Expo in San Diego.
“We are honored to receive the National Association of REALTORS® prestigious platinum award for three years in a row. SILVAR is committed to continuing to provide our members with the proper tools that will help them expand and excel in their business here and abroad,” said SILVAR Executive Officer Paul Cardus.
Under the leadership of 2015 Global Business Council chair Mark Wong, a REALTOR® with Alain Pinel Realtors Saratoga, SILVAR’s global business council conducted a number of activities and education programs to raise members’ awareness of global business in their local market, including programs on China, Mexico, India and the Philippines, as part of its “Doing Business With” quarterly series. Also this year, SILVAR conducted its fourth Certified International Property Specialist (CIPS) Institute, attended by 31 REALTORS® from around the Bay Area, Southern California and Arizona. The CIPS Institute is a full-week program that includes courses analyzing the international business climate, including capital flow, currencies, government regulations and cultures and conducting real estate transactions with clients from Europe, Asia and the Americas.
SILVAR partners with other real estate associations throughout the year to promote awareness and education in global real estate, and continues its role as NAR Ambassador Association to the Philippines. The Chamber of Real Estate and Builders’ Associations Inc. (CREBA), SILVAR’s cooperating real estate association in the Philippines and the largest real estate umbrella organization that country, also was honored at the event. SILVAR member Jennifer Tasto is the NAR President’s Liaison to the Philippines.
SILVAR’s commitment to international real estate goes beyond members assisting foreign nationals buying property in Silicon Valley. As a membership benefit, SILVAR REALTOR® members have free access to Proxio, the global networking platform that connects them with real estate agents domestically and abroad and enables them to share their listings, including property developments here and abroad.
Among the 110 REALTOR® global councils operating nationwide, only 17 were named platinum councils. SILVAR is one of three REALTOR® associations that has been awarded the top award for three consecutive years.
The National Association of REALTORS® is asking its over one million members to email their representatives in Congress and ask for their help in protecting the real estate industry from patent trolls.
A patent troll is a company that owns a large number of patents, but does not produce any goods or services. The patent troll business model is to sue companies for infringing on the patents it owns, or to license those patents to companies for legal use. These companies are suing REALTORS® and other small businesses for patent infringement based on their use of common business tools like drop-down menus or scan-to-email technologies.
Patent trolls target REALTORS® through letters threatening lawsuits or actually filing lawsuits. These letters demand licensing fees to use common business tools, such as drop down menus or shopping cart features on websites. For many of those targeted, paying for the license is often much less expensive than defending the lawsuit.
Patent trolls hurt the real estate industry. The Innovation Act will close loopholes in our legal system that allow patent trolls to go after businesses like yours.
If you are a REALTOR®, take action now. Just click HERE, or go to your REALTOR® Action Center App on your phone and tell Congress to Vote YES on H.R. 9- The Innovation Act.
Click the link below and tell YOUR member of Congress to STOP Patent Trolls today!
The Consumer Financial Protection Bureau (CFPB) announced a proposal to postpone the effective date of the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule to October 1 instead of August 1. The CFPB cited an “administrative error” and consumers’ busy schedules at the start of the school year as reasons why it is proposing the two-month delay. The National Association of REALTORS® and nearly 300 members of Congress had pushed for the delay or a period of restrained enforcement of the new rule so all parties can become accustomed to the changes.
The new rule, which is also referred to as the Know Before You Owe rule, is intended to benefit consumers by creating more accountability and offering consumers more time to understand the mortgage process and their options, but industry experts anticipate complying with the new rule could add at least a week to closings. They are concerned the potential delays might even give all-cash buyers an edge over home buyers who are depending on financing, especially when closing quickly is critical in a hot market.
The Know Before You Owe rule is essentially a consolidation of several forms. The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosures will be combined into a new form called the Loan Estimate. The HUD-1 and the final Truth-in-Lending disclosures will be combined into another new form called the Closing Disclosure.
It is the timing requirements to deliver the Closing Disclosure that have real estate professionals concerned about potential delays in the closing process. If the Closing Disclosure is not actually received in person, the new rule requires an additional three-day period if it is delivered by mail or electronically. Sunday is not counted; then add a federal holiday to the mix the Closing Disclosure may have to be delivered seven days or more before consummation.
Also, since the responsibility for compliance with the new rule falls heavily on lenders, it is very likely that lenders will retain tight control over the process of issuing the Closing Disclosure. Any last minute changes to the contract, such as seller credits to buyers or removing a loan contingency, could trigger cause for reissuance of a new Closing Disclosure. This could create further delays in the transaction.
“Starting the loan approval process early will reduce the risk of delayed closings. It is imperative that buyers work with a REALTOR® who understands these new guidelines and can prepare the buyer for all possibilities,” advises Chis Isaacson, president of the Silicon Valley Association of REALTORS®.
The Consumer Financial Protection Bureau (CFPB) announced on Wednesday that it would be “sensitive” to companies that make a good-faith effort to comply with the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure (TRID) regulation that goes into effect on August 1, 2015. Although the announcement by the CFPB is less than what some members of Congress requested, which was a hard deadline five-month testing or “grace” period, it is a net win and a welcome development toward clarifying the changes coming to real estate closings on August 1.
The National Association of REALTORS® (NAR) has been leading the effort to ensure an effective implementation of the TRID regulation. NAR has advocated a period of restrained enforcement and liability for the TILA-RESPA Integrated Disclosure rule.
NAR will continue to have a dialogue with Congress and the CFPB to minimize possible market disruptions or uncertainty when the rule takes effect August 1. It was through member efforts during the 2015 REALTOR® Legislative Meetings and Trade Expo that more than 275 U.S. Senators and Representatives signed onto a letter to CFPB Director Richard Cordray to ask for clarification of the new rule.
For the latest information on this issue, visit www.realtor.org/respa.
REALTORS® meet with Congresswoman Anna Eshoo.
On May 11-16, REALTOR® leaders from across the country converged on the nation’s capital to advance key real estate issues with regulators and members of Congress during the National Association of REALTORS® Legislative Meetings & Trade Expo. SILVAR’s leadership was among nearly 8,000 REALTORS® and guests who met with legislators, regulatory officials and top industry executives to ensure qualified buyers and investors have access to safe and affordable mortgage financing and protect and advance the operations of REALTOR® businesses and real estate-related tax policies.
SILVAR REALTORS® met with U.S. Representatives Anna Eshoo, Jackie Speier, and staff of Congressman Mike Honda. They urged their elected officials to preserve current real estate-related tax policies and extend the Mortgage Forgiveness Tax Relief Act, which expired at the end of 2014 and prevents distressed homeowners from facing excessive income tax bills on forgiven home loan debt. They also actively engaged with lawmakers on protecting commercial real estate related tax provisions, such as retaining like-kind exchange provisions and making permanent the 15-year depreciation period for leasehold improvements. In addition, REALTORS® urged members of Congress to enact legislation reforming patent demand letters, setting nationwide data security standards.
REALTORS® likewise raised concerns about the upcoming implementation of the TILA-RESPA Integrated Disclosure (TRID). The new rule takes effect August 1, and if not understood by all parties involved, could delay the closing of escrow. SILVAR REALTORS® requested that Congress approve a grace period for the enforcement of the new closing process, so parties can become accustomed to the changes.
REALTORS® also attended sessions with government officials and industry experts, including Secretary of Housing and Urban Development Julián Castro, Donna Brazile, vice chair of the Democratic National Committee, and Republican political strategist and 61st chair of the Republican National Committee Ed Gillespie.
Attending the NAR Legislative Meetings from SILVAR were SILVAR President Chris Isaacson, President-elect Karen Trolan, NAR Directors Leannah Hunt, John Tripp and Suzanne Yost, Carole Feldstein (Federal Political Coordinator for U.S. Representative Anna Eshoo), Judy Ellis (NAR Committee member), Jim Hamilton (NAR Executive Committee members), Jeff Barnett (NAR Finance Committee member), Executive Officer Paul Cardus and Government Affairs Director Jessica Epstein.
On May 14, 30 members and guests of the Silicon Valley Association of REALTORS® attended “Doing Business with Mexico” and celebrated Cinco de Mayo afterwards with Mexican delicacies. With Global Business Council (GBC) Chair Mark Wong and GBC member Sara Spang both moderating, panelists shared valuable information about both inbound and outbound transactions with clients from Mexico.
Panelists included Nancy MacLeod, a real estate broker/owner of Homes2Buy.com, who owns a villa in San Miguel de Allende, Mexico, where she also represents buyers from the U.S.; Alicia Sandoval, a REALTOR® with Keller Williams Realty in Palo Alto and a native of Mexico; Amber Neil, a REALTOR® with No Borders Realty in San Jose, who has dual U.S. and Mexican citizenship and has been doing business in Mexico and California since 2006. Another panelist, Sal Covarrubias, sales manager for First American Title Company, discussed title vesting concerns, proper identification needs for sellers, and the differences in holding title between the U.S. and Mexico.
The REALTORS® said the best way to tap into the Mexican market is to join AMPI (Asociación Mexicana de Profesionales Inmobiliarios), the largest real estate association in Mexico. Join the organization as an affiliate and attend their conventions and events.
AMPI has ties with the National Association of REALTORS® and is strongly advocating for the licensing of real estate agents in Mexico, because right now, anyone can be a real estate agent there. Travel and networking is key to learning more about the real estate business there and AMPI would be a good source, they said.
Covarrubias said issues regarding Mexicans buying property in the U.S. are similar to that of other foreign buyers. “Timing is important and whether the foreign buyer will be personally present at closing. Also, agents need to verify their client’s legal name. It may not matter much when the client buys the house, but it will matter when it is time for that client to sell the property,” said Covarrubias.
Transactions can take months to conclude in Mexico so Mexicans who buy property here get culture shock when the process is quick, and they can close as soon as three or seven days. Also, there is no disclosure when buying property in Mexico, so REALTORS® need to take time to explain to their Mexican clients the transaction process in the U.S. “Mexicans are very social and want to get to know you personally first before deciding to do business with you. They value social graces, mannerisms and respect,” said Neil. “And they are not keen on email or text. They want one-on-one, eye-to-eye conversations with you, and many meetings.”
Like any country, there are places that are dangerous, but MacLeod said, “Mexico is still very safe, especially the tourist areas and places like San Miguel de Allende.”
Sandoval said while payoffs were prevalent in the past, business there is now done in a more professional way.
Lastly, don’t believe you have to sign a 99-year lease and can’t own property in Mexico. “I’m not sure where that myth came from,” chuckled Neil.
VIEW PHOTOS HERE
Take advantage of SILVAR’s early bird special price and complete all classroom requirements needed to earn the National Association of REALTORS® (NAR) designation. The courses will be offered at SILVAR on September 30, October 1, 2, 5 and 6.
SILVAR is offering an early bird special for members and nonmembers through June 1 – $500 for the paper version, which includes a manual for each of the five courses offered, and $450 for the paperless option. After June 1, regular cost of the entire CIPS Institute is $600 for the paper option and $550 for paperless. Cost for an individual course is $175 for hard copy and $150 for paperless. Members may enroll online at ims.silvar.org. Non-members may register by contacting SILVAR Public Affairs & Communications Director Rose Meily at rmeily@silvar.org, or call (408) 200-0109.
The CIPS Institute provides training in international business issues, including currency conversion, cultural awareness, legal and tax requirements, ownership and transaction principles of international real estate, and specifics about the real estate markets in Europe, the Americas, and Asia. The week-long CIPS Institute includes two required core courses and three elective courses. Students must pass a multiple-choice exam at the end of each course.
David Wyant, 2012 and 2009 NAR International Instructor of the Year, will be returning to SILVAR to teach the CIPS Institute. Wyant has taught three previous CIPS Institutes at SILVAR and received excellent reviews.
Upon completing the required five courses and fulfilling other necessary requirements, applicants receive their CIPS designation and will have the opportunity to be recognized at the November 13-16, 2015 NAR REALTORS® Conference and Expo in San Diego.
Limited sponsorships for the CIPS Institute are available. Each sponsor is given the opportunity to speak for 20 minutes about their product or service on an assigned day. For more information, contact SILVAR Public Affairs & Communications Director Rose Meily at rmeily@silvar.org, or call (408) 200-0109.
C.A.R. Region 9 Chair Carolyn Miller installs FAREPA’s 2015 leadership team.
The Filipino American Real Estate Professional Association of Northern California (FAREPA) 2015 leadership team was installed last Wednesday at the Milpitas Community Center. California Association of REALTORS® Region 9 Chair Carolyn Miller administered the oath of office to FAREPA’s new officers and board directors.
The 2015 FAREPA officers are Ric Bareng, Jr. (Century 21 Alpha); Melanie Holthaus (Premier Century Real Estate Services), president-elect; Anna Lopez (Wells Fargo Home Mortgage); Jerry Quintos (Abbott, Stringham & Lynch, CPA), treasurer. The association’s 2015 board of directors are Dinah Casibang (ERS Mortgage), Barbara Kuang (Allstate Insurance); and Mike Santana (ADT Home Alarm Services).
On behalf of SILVAR, National Association of REALTORS® (NAR) Director John Tripp and NAR President’s Liaison to the Philippines Jennifer Tasto congratulated Bareng, Jr. and FAREPA’s leadership team and reaffirmed SILVAR’s support for FAREPA and its mission. FAREPA’s mission is “to promote the interests of Filipino American real estate professionals, elevate the level of professionalism within the global community through education, networking and partnership, and create a united voice within the real estate community.”
In his address to members and guests, Bareng, Jr. noted the pillars that made FAREPA strong since its formation over 11 years ago and enabled the association to meet and overcome past challenges were FAREPA’s commitment to educate its members, increase the level of professionalism, rebuild FAREPA’s brand and support other chapters along the way, and always giving back to the community here and abroad. FAREPA raised money for victims of Typhoon Haiyan/Yolanda last year. Proceeds from a drawing of prizes during the evening’s installation dinner will benefit the WoundedWarriorProject.org. Bareng, Jr. is a noncommissioned officer in the U.S. Army Reserve.
A highlight of the evening was FAREPA’s thanking SILVAR for its support through the years. In recognition and gratitude, past president Paul Stewart presented SILVAR Executive Officer Paul Cardus the “Honorary Filipino” award.
Also representing SILVAR at the event were Global Business Council member Jimmy Kang, Sue Bose, and Public Affairs & Communications Director Rose Meily.
GBC Chair Mark Wong and YPN Chair Ryan Nunnally with panelists (left to right) Carol MacCorkle, Omar Kinaan, Michael Repka and Kim Connor.
The room at the Silicon Valley Association of REALTORS® was filled to capacity with members attending the Lunar New Year Celebration hosted by the Silicon Valley Young Professionals Network (YPN) and the Global Business Council. The event featured nationally acclaimed feng shui master Y.C. Sun, a catered Chinese lunch, followed by a panel with REALTORS® who have been successful dealing with overseas Chinese buyers.
“Yesterday’s event was a great success!” exclaimed YPN Chair Ryan Nunnally. “No seat went empty. The room was filled with talent, both in the audience and with the established speakers.”
Nunnally and GBC Chair Mark Wong served as moderators for the event. Panelists included Michael Repka, DeLeon Realty, Palo Alto; Omar Kinaan, RE/MAX Distinctive Properties, Menlo Park; Carol MacCorkle, Pacific Union International Real Estate, Menlo Park; and Kim Connor of Intero Real Estate Services, Saratoga. These REALTORS® have had a lot of success capturing the Chinese overseas market, but they said it’s not easy, it takes patience and hard work.
Building relationships and trust is key to working with Chinese buyers. Repka said their company’s interest in China began a few years ago when he and Ken DeLeon traveled to China with their Chinese agent Kim Heng. It was there where they first developed relationships, which blossomed and expanded, leading to numerous transactions. Repka said having Heng, who speaks fluent Chinese and knows the culture, proved very valuable to them.
“You need to speak the language or have someone that does. People are always comfortable in their own language,” said Repka.
Silicon Valley Association of REALTORS® says ... 