The Voice for Real Estate 39: Condo Loans and IRS Forms

If you received a cooperative commission or referral fee from an agent at another brokerage last year, that agent might be sending you a 1099-MISC form. Info on the forms is a top story in The Voice for Real Estate for the week of Feb. 8. Other stories look at "coming soon" listings, cap rates and other trends this year in commercial real estate, and why the effort to improve the availability of FHA-insured loans for condo purchases is gaining ground.

Featured segments:

  • Eased Condo Loan Rules Clear Hurdle
  • Cap Rates and Other 2016 Commercial Trends
  • IRS 1099 Rules
  • ‘Coming Soon’ Off-MLS Listings

Get more on all the topics covered in this video:

Voice for Real Estate 39: Transcript

Condo Loans and IRS Forms

Stephen Gasque Voice Over: 

Condo buildings with fewer owner occupants may soon be OK – with the FHA.
All signs point to a solid year in commercial real estate
And a head’s up on IRS 1099 forms

These stories and more in The Voice for Real Estate

Hi, I’m Stephen Gasque with the National Association of Realtors.

If you sell condos – you know all about the owner-occupant rules that must be met – to qualify for FHA financing. Too many renters, and your clients might have to look elsewhere for a loan.  Right now, at least half of all units in a property have to be owner-occupied or lenders give buyers an FHA loan.
But, changes are on the way…changes sought by NAR. They involve a more sensible ratio between owners who live in their condo units and those who rent their units out.
Last week the House of Representatives overwhelmingly passed an NAR-supported bill that would reduce the ratio to 35 percent owner occupied. It would also make condo board certifications easier and less frequent. NAR President-elect Bill Brown has more. NAR First Vice President Elizabeth Mendenhall has more

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It’s not a done deal yet. The bill has passed the house – next stop? The Senate.

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2015 was a very good year for commercial real estate. Sales and leases were up, vacancies were down, and prices were strong. And this year? A new report from NAR, Deloitte, and Real Estate Research Corp/SITUS ---- predicts markets will remain strong, but without the robust growth we saw last year. NAR’s Lawrence Yun has more on the report, which marks the fifth year the three organizations have worked together on commercial research.    

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One concern facing commercial real estate is federal oversight of lenders. Look for more coverage in the weeks ahead on what’s happening in the important—world of commercial real estate lending regulation.

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Did you receive a referral fee or a cooperative commission from a real estate professional at another company last year? If you did, and it was for more than $600, they might owe you a Form 1099-MISC. The IRS set a February 1 deadline for 1099s to be issued. NAR’s Finley Maxson has more.

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NAR Legal Affairs has posted information on this IRS reporting requirement on nar.realtor

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Have you ever listed a property on the MLS, as ‘coming soon?’ The rule of thumb is, if a property is not ready for showing and it’s not available to anyone for showing, ‘Coming soon’ is probably the appropriate status for the listing. But if only licensees from the listing brokerage have access to it, that could be a violation of the NAR Code of Ethics and the Standards of Practice. NAR’s Katie Johnson has more. 

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You’ll find more on “coming soon” listings, as well as other types of off-MLS listings, in the latest “Window to the Law” video from NAR Legal Affairs.

[SWOOSH]

And that’s our show for the week of February 8. You can get more on everything we talked about today at The Voice for Real Estate page on nar.realtor. Thank you for joining us, and be sure to join us again as we bring you the latest news on The Voice for Real Estate.

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