COLUMN: Contract issue stirs debate

What do many people do when buying or selling a home? They contact a Realtor.

Members of the Greater Las Vegas Association of Realtors and the Nevada Association of Realtors are professionals who annually must pass stiff tests and maintain educational standards.

However, there is a point of contention among Realtors that the public is not being well-served by the sales contracts they give their clients to sign. This is a subject that stirs heated debate on all sides, because it seems there aren't just two sides to this story.

State Sen. Mike Schneider, D-Las Vegas, introduced a bill in the last session of the Legislature that called for a standardized contract. He said a faction of Realtors involving a few companies fought the proposal and he was forced to withdraw the bill a month later.

"A standardized form helps the consumer and Realtor from getting into trouble down the road. If they don't want the Real Estate Division (of the state's Department of Business and Industry) to get into the act, the Realtors should develop something themselves and be proactive," Schneider said.

Deidre Felgar, president of the Greater Las Vegas Association of Realtors, said the association would support a standard contract, but only if the Realtors could participate in its writing.

Felgar said a contract would address general provisions such as names, dates, etc., but it might be impossible to write an all-encompassing contract unless it contained all manner of possible contracts, which would make it extremely cumbersome.

"Addendums would have to be attached for specifics and tons of addendums attached to the general contract would be proprietary to each company," she said. "Unless the Legislature wants to meet each time a federal regulation changes or a lending entity such as Fannie Mae changes regulations, the writing of a standardized contract has to be left in the hands of real estate professionals.

Fafie Moore, owner and president of Realty Executives, said the point for standardizing is to allow the public to be well-served and aware of their rights.

"The individual Realtor can promote his addendum all day long," Moore said. "The basic contract should protect and inform the public when purchasing a home. We are here to provide a service."

Joan Buchanan, administrator of the Real Estate Division, said the state is tracking complaints and evaluates whether a standardized contract might have helped in those situations.

"If you talk to Hispanic people, there are a lot of problems regarding people who can't read English, particularly in the loan area," she said. "Also, disclosures should be in simple English, so you don't have to be college level to understand the contract."

Buchanan said the division was asked to study all the different disclosures that are necessary. Some brokers put them in the contract and others put them in an addendum.

"It's our belief that people are better protected by a standardized contract," she said. "It's hard for people who are doing a transaction -- you have to read every single line. If the disclosures are added as an addendum, that would stand out."

Buchanan said there are a lot of pros and cons on the subject.

"The position of the division is that we're watching and will be prepared to address the issue when the Legislature comes out again."

Carmel Hopkins, Real Estate Product Manager for the Las Vegas Review-Journal and Las Vegas Sun, can be reached at 380-4574. Her e-mail address is Carmel_Hopkins@ lasvegasnewspapers.com. Snail mail is P.O. Box 70, Las Vegas, NV 89125.

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