Builder - November 2008 - (Page 54)

UPDATE A number of builders, it turns out, may not have been doing their legal due diligence in regard to incentives and have left the door open to government investigations as well as lawsuits from settlement agents, lenders, investors, and home buyers. Of course, there is nothing inherently wrong or illegal about offering home buyers incentives to purchase a home—as long as the incentives are disclosed to all parties involved in the transaction and are noted on all relevant forms, be it the HUD-1 Settlement Statement or state government– mandated paperwork. The incentives also cannot be tied to requirements to use affi liated services such as a mortgage broker. A builder can legally offer a cash incentive for using that broker but cannot require use of the broker for the consumer to buy the home. Brokers also cannot kick back money to the builder for referring services unless the builder owns a share of the broker. Referral fees are illegal under the Real Estate Settlement Procedures Act, which is overseen by HUD. Builders can stray into trouble when incentives take place after closing or are not included in the sales contract or as an addendum. Another problem occurs when the parties involved know they are supposed to disclose incentives but intentionally hide them to artiﬁcially inﬂate sales prices. “There are some people out there that are intentionally trying to do this,” says Christopher Monahan, an attorney with Morgan Miller Blair in Walnut Creek, Calif. “But there’s also a lack of knowledge. The biggest fear I have for my builder clients is that they might not know that they JOB TRAINING translated from English to Spanish and from Spanish to English. Part of the goal of the training program, while not to teach English, is to provide a transition into the language, Domenech says. “Along with the translation of the text itself, we also tell them what things mean,” she says. “It’s a safety hazard to have a lack of communication on the site.” Which assessment exams and training materials are translated is determined by demand from the NCCER’s sponsors. The NCCER was formed in 1996 as a nonproﬁt organization to do skill assessments by several of the construction industry’s leading manufacturers and contractors. “The sponsors keep asking for more titles to be translated, but we have limitations on the workload we can handle,” Domenech says. The tests can be taken over the Internet or with paper and pencil. —E.B. can’t just offer an incentive to a buyer without actually complying with the [California Department of Real Estate] requirements.” Unfortunately, says Monahan, he and other real estate attorneys ﬁrst hear from builder clients only after a violation has been identiﬁed. Penalties for violations can be severe. In California, authorities can shut down developments by pulling the permits necessary to sell homes, called “white reports.” “These are tough times, and it’s understandable that sellers would want to discount their properties,” says Phillip Schulman, partner in the Washingtonbased law ﬁrm K&L Gates. “But they need to be vigilant about making sure that the true transaction is disclosed to all parties— not just the title agent, not just the lender, not just the buyer, but everybody.”—E.B. BUSINESS Found in Translation A nonproﬁt offers skill certiﬁcation for Spanish-speakers. language barrier exists on many jobsites, one that can leave managers and workers unsure and distrusting of the abilities of their on-site peers. In an industry that relies so heavily on subcontractors, the abilities of those subs become a major concern. The National Center for Construction Education and Research (NCCER), which has developed job-speciﬁc training and assessment exams for a variety of construction skills and at a number of levels of proﬁciency within each skill, is stepping into the breach to assist Hispanic workers. The Gainesville, Fla.– based NCCER is translating some of its assessment exams as well as some entrylevel training materials into Spanish. “The assessments measure technical expertise,” says Tania Domenech, NCCER project manager in charge of the translations. “A concrete ﬁ nisher may be an excellent concrete ﬁ nisher, but because the language is a barrier, A they may have limitations as to how far they can advance in the industry.” Like their English-speaking counterparts, Spanish-speakers who complete NCCER exams will receive credentials from the NCCER National Registry. The ﬁ rst wave of translated materials gives Spanish-speaking workers access to assessments for concrete ﬁnishing, industrial carpentry, industrial insulation, industrial pipe ﬁtting, reinforcing iron and rebar, scaffold building, level one masonry, and rigging fundamentals. The goal of the program is to test technical skills, not language, Domenech says. But there is a language component to the training materials. Every translated training book contains a glossary of trade terms, TO VIEW ADDITIONAL BUSINESS STORIES, GO TO W W W.BUILDERONLINE.COM/BUSINESS. HAVE BUSINESS TIPS OR STRATEGIES TO SHARE? E- M A I L E T H A N B U T T E R F I E L D AT: e b u t t e r f i e l d @ h a n l e y w o o d . c o m 54 ■ B U I LD E R nov e m ber 2008 W W W.BUILDERONLINE.COM http://WWW.BUILDERONLINE.COM/BUSINESS http://WWW.BUILDERONLINE.COM

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Builder - November 2008 Contents Editor’s Notes B-Mail Book It Missing Links Inside Story Top Shelf Green House Business Update Sales Strategies Industry Insight Products Tech Tools National Best Seiders' Economy Sifting Through the Ruins Cottage Industry Upside Down Ad Index Last Word

Builder - November 2008

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