On December 7, 2009 the Dallas Chapter was formed, shortly after we then adopted our DFW YEA! Network name.  On August 31, 2010 we submitted our application for Chapter of the YEAR!  With so many great chapters in the United States we know it will be a tough decision for the judges.  With all the hard work and dedication the best chapter will and deserve to win.  We wish all the chapters luck.  

MetroTex Association of REALTORS Board of Directors approved the appointment of DFW YEA! Network committee Chair and Vice Chairs for 2011!

Subhi Gharbieh has been selected as DFW YEA! Network Chair;

Megan MacLeod has been selected as DFW YEA! Network Vice Chair.

Congratulations to Subhi and Megan!

Chris Mitchell*

Vice President / Manager

Uptown & Frisco Offices

Lawyers Title Company

Ph: 972-342-7876

Chris.Mitchell@LTIC.com

*Director of Public Relations and Communications for The DFW YEA! Network

Many Real Estate professionals may not fully understand the importance of a Tax Certificate provided to your customers in their Commitment for Title Insurance package. This blog will highlight the importance of watching tax certificates on every transaction...especially when dealing with properties built in the last few years. This example was a simple transaction on a home built in 2009…but Central Appraisal District and tax office never triggered AG rollbacks on the entire subdivision, believe it or not... The property tax statues allow for rollbacks of up to 5 years from the date of change in land usage/ownership. That means if land usage/ownership changed in 2009, the tax office could roll taxes back as to as far as 2004 and collect taxes accordingly!

Example:

Developer buys an undeveloped 50 acre tract in 2003 with the intent to build a subdivision in the next few years. Since they will be setting on unimproved property for several years, the developer leases the land to a local farmer to use for grazing cattle and files for an Agricultural Exemption (“AG Exemption” ) on the entire 50 acres. The AG Exemption establishes taxes based on the value of the “production” from the land. Needless to say, this greatly decreases the annual taxes for the 50 acre tract (the “Parent Tract” ). In 2009 the Developer commences grading/construction/replatting work on the new subdivision infrastructure, etc. (this triggers a “Change in land usage/ownership” ). Taxing authority fails to trigger and calculate rollback taxes for the last 5 years and Developer doesn’t follow-through on the detail to make sure their tax liabilities were satisfied. Subdivision is complete and houses are ready to be sold. Properties are purchased by numerous individuals and families in late 2009. The Escrow Officer at the Title Company who closed their purchase missed the informational not on the tax certificate indicating the property was subject to rollback taxes on the parent tract and closed the transaction! A year passes since they closed on their new home and never a worry about rollback taxes. The property owners see historical low interest rates and decide to refinance the property. The new Escrow Officer at the new Title Company the will be working with immediately notices the rollback issue and notifies the parties to the transaction. The Loan Officer working on the new loan hasn’t experienced this before and isn’t sure if this is an issue to get the deal closed so he calls the Escrow Officer to discuss the options.

Simply put:

If a developer doesn’t pay the rollbacks, and the tax office forecloses on the entire subdivision for non-payment of taxes…that has the ability to extinguish the lien we are creating. The tax lien could have the priority lien position as of the first day of the year for which the taxes are owed, which is oftentimes even before the conveyance to the existing owner. That is why this is such a sensitive topic -- it could cause a total failure of title.

Typically, a Texas Title Insurance Company will have two real options here:

1) Wait for rollbacks to be triggered/assed/paid and a clean tax certificate to be issued and close without exception to rollbacks; or

2) Close subject to rollbacks and accept the commitment/policy subject to rollback taxes (See below for more info on option #2)

That being said…

Texas Title Insurance Companies typically cannot provide the rollback coverage without clearing the tax entire rollback issue…which most Texas Lenders/Investors will require (typically). The proposed insured under the commitment would need to confirm in writing that they will not require the rollback tax coverage in the final loan policy (accepting Schedule B, Item No. 5, as exactly as shown in the commitment – except that the “Not Yet Due and Payable” language may still me amended). Rollback Taxes would need to be fully addressed by each of the taxing authorities (City/County/ISD/etc.) before the transaction could be insured without exception to Rollbacks.  On the Commitment for Title Insurance, please look at item 5 of Schedule B as it pertains to rollback taxes Excepted to from the title insurance coverage. Typically a Texas Title Insurance Company could delete certain language from that exception to provide more coverage to the insured (See below in with regard to Procedural Rule P-20.B.1-2), but when rollbacks are outstanding, not billed and Due…It changes what we can do under the Texas Title Insurance Regs.

P-20 Standard Exception Relating to Taxes

A. Taxes for the Current Year

1. In connection with the issuance or amendment (after issuance) of any Owner's Policy,

LoanPolicy, or of any Loan Title Policy Binder on Interim Construction Loan (Interim Binder),

an exception must be shown on Schedule B to taxes and assessments for the current tax

year by any taxing authority, and the Company may not insure that taxes for the current tax

year are paid, unless:

a. Taxes are Paid or Collected at Closing. A company may insure that taxes for the

current tax year are paid if:

(1) All of the taxes for the current tax year have been assessed by the taxing

authorities;

(2) The Company has satisfactory evidence in its file that the assessed

taxes for the current year have been paid by the owner or

 (3) If all of the taxes for the current year have not been paid:

 (i) The unpaid taxes are collected at closing by the Company; and

(ii) The Company will pay the taxes in the ordinary course of business.

b. Owner's Tax Reserve/Escrow Account With Payoff Lender. A Company may insure that taxes are paid for the current tax year if:

(1) The Company has satisfactory evidence in its file that the assessed taxes for the current year have been paid by the current lender from the owner's Reserve/Escrow Account held by lender, or

(2) In the absence of satisfactory evidence in (1) above, a Company may accept:

(i) A sufficient Indemnity executed by a responsible party,

(ii) Together with a deposit of funds in an amount sufficient to pay the assessed taxes.

(3) When following provision (2) above, the Company shall:

(i) Pay the assessed taxes according to the terms of the Indemnity and before they become delinquent, or

(ii) Upon receipt of satisfactory evidence that the assessed taxes for the current year have been paid, promptly pay the escrowed funds to the proper party.

2. If all taxes for the current year have not been assessed by the taxing authorities, the Company may not insure that taxes for the current year are paid.

B. ROLLBACK TAXES

1. In connection with the issuance or amendment (after issuance) of any Loan Policy or of any Loan Title Policy Binder on Interim Construction Loan (Interim Binder), and upon payment of the premium required under Rate Rule R-19, the words: "and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership", as contained in the standard tax exception may be deleted by:

(a) Deletion of such words upon the policy or binder form, either by checking the appropriate box on a Form T-2 or T-2R or by lining through the words or by producing an electronic form with the words; or

(b) By attachment to the policy or binder of endorsement form T-30.  The deletion of the above phrase from the standard tax exception is hereafter referred to as "insure or insuring against rollback taxes".

2. A Company may not insure against rollback taxes unless:

a. The Company has satisfactory evidence in its file that the assessed taxes for the current year are not based on an agriculture or open-space valuation; or 

b. (i) The rollback taxes have been assessed by all of the taxing authorities;

(ii) The rollback taxes are collected at closing by the Company, and

(iii) The Company will pay the roll back taxes in the ordinary course of business.

C. TAXES NOT YET DUE AND PAYABLE

In connection with the issuance of a Loan Policy or Loan Title Policy on Interim Construction Loan (Interim Binder), upon payment of the premium in R-24, a Company may:

1. If satisfied that all taxes, standby fees and assessments by any taxing authority for the year of  the issuance of the Loan Policy or Interim Binder are not yet due and payable, add the following after the standard tax exception: "Company insures that standby fees, taxes and assessments by any taxing authority for the year _____ are not yet due and payable." The addition may be made either by checking the appropriate box on a Form T-2 or by otherwise inserting the additional words into the form.

2.  If a Company determines that some, but not all of the taxes are not yet due and payable, the Company may add the following after the standard tax exception:

"Company insures that standby fees, taxes and assessments by any taxing authority for the year _____ are not yet due and payable, as to [insert name of applicable taxing authority/authorities] only."

Sam Sawyer

REALTOR with Roger's Healy

DFW YEA! Network Advisory Council Member

DFW YEA Network Blogger

It seems like light-years ago when Joe Mazza reached out to me to join this group he was starting at Metrotex. Joe explained to me that he was in charge of recruiting people for the newly formed YPN Chapter here in Dallas. I had heard of YPN in other cities, so I was definitely interested in this opportunity. When I first met Joe I distinctly remember asking him, "How does a city such as Dallas with a huge real estate market not have a thriving YPN chapter?" Joe seemed to be wondering the same thing, and I could tell he was determined and very motivated to get our chapter going asap!

Well since this meeting our Dallas area chapter has been formed, and Joe did an amazing job of recruiting young people from all over the metroplex to join the steering committee for this group. Our first "red carpet" event a couple of months ago showed us how much of an interest people in the area have in the younger demographic of the real estate industry. We had to literally cram all of the attendees to our first happy-hour networking event into a small space because some last minute power outage problems hindered us from our planned venue; nevertheless, the event was a great success, and it succeeded in getting the word out about the Dallas YPN Chapter - more formally known as DFW YEA!

Our Chairman, Brandon Rodriguez, has done an amazing job of keeping everyone organized and on the same page with all of our group's activities. We also have a much needed accountability program in place that requires all persons on the advisory council to attend our monthly meetings. The success of a young group like this requires committed involvement, and I love seeing the same faces at every meeting. It can be easy to miss out on a meeting due a number of items in our very hectic lives, but our members are very committed to seeing our group succeed on a national level. We look forward to the future of this group, and we all believe that we have some great potential for many years to come!

If you are in the Dallas area and would like to get involved, become a fan of our Facebook group to stay in the loop on upcoming activities - http://www.facebook.com/#!/group.php?gid=358629100160&ref=ts

DFW YEA! Network is presenting it's First Annual Phonathon Fundraiser for TREPAC, July 15th from 5:00 p.m. to 7:00 p.m. in order to raise $15,000 as their projected goal.  "I think this fundraising initiative is important to protect property rights and our profession as REALTORS.  This give our Chapter the chance to enhance awareness to the young professional and our future leaders to be aware of the laws which could change our industry," said DFW YEA! Chairman Brandon Rodriguez.

TREPAC known as the Texas Real Estate Political Action Committee is a voluntary, non profit, unicoporated group whose membership consist of REALTORS and others interested in the preservation of private property rights and the real estate profession.

Federal law prohibits soliciting contributions from individuals who are not REALTOR® members. Information disseminated in the public domain about TREPAC might be considered a solicitation, therefore investments received from non-REALTOR® members through this online campaign will be returned.

https://www2.gotomeeting.com/register/814175059

Close to 1,000 YPN member throughout the United State will be attending this webinar.  We invite you to join and represent Dallas

DFW YEA! Network welcomes Swapnil Sharma, REALTOR of Re/Max DFW Associates.  We are very excited to have her as a member of our organization.

DFWRealtors.com

MetroTex Association of REALTOR is hosting a

REALTORS Have Talent TREPAC Showcase!

-They are looking for talent!

-It could be anything entertaining or unexpected.

-Can you dazzle a crowd?

-Now is the time to show off!

If you just want to be in the audience we can use you too!

Admission is $25.00, watch your peers show off!

Help select the "People's Choice Award" for your favorite act.

$10.00 for one ticket

$25.00 for three tickets

$35.00 for five tickets

The event takes place on March 10th from 7 to 10 pm at the Plaza Arts Center, 1115 Fourth Avenue in Carrollton, Texas.

Cash Bar and FREE Parking!  Great Cause and great fun!

Contact: barbaraa@dfwrealtors.com for Talent participants and admission information.  Don't wait, we will all be there!  This

DFW YEA! Network would like to say thank you for our new Friends of Sponsors!

D.W. Eves Insurance

Mercantile Title

Chase Pinkston

Kylie Whitehead

Robert Martinez thank you for bringing in Sponsors!

DFW YEA! Network would like to thank the following for our Silver Sponsorship!

Eloise Martin and James Martin

DFW YEA! Network would like to thank our Bronze Sponsors for donating to our Red Carpet Event!

RE/MAX Urban Jeff Updike

MLG Inc dba Value Properties Realty

Chris Mitchell

Brandon Rodriguez

DFW YEA! Network Director of Social Networking has now placed the young professionals organization on Twitter.  Follow us DFWYEAnetwork

The DFW YPN Steering Committee officially picked the Chapter name, DFW YEA! (Young Educated Associates) Network. The name brings the excitement of the group into our branding.  A date was also set for our Kick off Event which is tenatively February 4, 2009.  This will be a Red Carpet Event to bring a bit of Hollywood to Dallas.  As we continue on into the week we plan to have over 300 people in attendance.  The Who's Who of MetroTex will be there and will give incoming member a chance to be part of history.

DFW YEA! Network welcomes Joy Gomez as a member of DFW YEA! Network.  Joy also serves as Secretary for DFW YEA! Network.

With seven years of experience in real estate, beginning in title insurance and continuing as a residential loan officer, Joy Gomez has excelled at helping clients through the entire purchasing process. Joy truly understands the process of a real estate transaction and works to ensure a great experience for everyone involved. What she has gained from her experience in real estate is the ability to understand each client’s needs. Joy believes that understanding a client’s needs is the key to helping her clients achieve their financial goals. Especially in today’s market, Joy understands that entrusting your money and financial future to someone can be uncomfortable; which is why she takes the time to ease any doubts by answering questions and listening to clients’ concerns.

DFW YEA! Network proudly welcomes James Martin with Coldwell Banker, James was also named DFW YEA! Network Director of Events.

A native Texan and lifetime Dallas resident, James is a third generation REALTOR. Both his grandfathers were Brokers. Grandfather Martin owned a sewer and water company in Oklahoma. Grandmother Martin's family owned a concrete company in Oklahoma City. His grandfather on the Eriksson side was president of the Dallas Home and Apartment Builders Association and had several real estate companies. His father is a builder and has served on the board of directors for the Dallas Home and Apartment Builders Association. His mother, Eloise, is a sales associate for Coldwell Banker Residential Brokerage and serves as 2008 president of MetroTex Association of REALTORS®.

DFW YEA! Network is proud to add to our member's Chris Mitchell of Laywers Title.  Chris Mitchell is also the Director of Communications and Puplic Relations for DFW YEA! Network.

Chris is a native to Dallas/Fort Worth and resides around the prestigious area surrounding far North Dallas. Chris started his career with the focus to migrate into the medical realm, to utilize his skills in advanced math and science studies. Being around Title Insurance all his life, Chris ultimately decided follow the lead of several close relatives, who have continuously held senior management positions across the industry. Having worked for major market competitors in his nearly 10 years of service in the Title Insurance Industry, Chris has chosen to stay among the Fidelity National Family of Title Insurance Companies for the past 5 years.

DFW YEA! Network is proud to announce the membership of Robert Nunez, Owner of Nuñez Lending.  Robert was nominated as Vice Chairman and Director of Membership for DFW YEA! Network.  We are excited to have him on board

About Nuñez Lendig

Nuñez Lending is a full service residential mortgage company, serving Texas. Excelling in providing personal, responsive service, Nuñez Lending is committed to redefining the customer experience in the mortgage industry. More than 100 competitive offerings including home purchase, refinancing, home equity, construction, FHA, VA, Condo, Condo-Hotel and Jumbo loans. We also have financing for commercial projects in the Oil, Gas, Wind, Solar and Energy Space. For more information contact us at 972.661.8800.