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p 12 p 8 Legal Developments in Fair Housing p 17 “Fair Housing Lives in Maryland” 2013 Calendar Contest The Maryland Association of REALTORS ® www.mdrealtor.org The Voice for Real Estate ® in Maryland Consumer Website: WWW.MARYLANDHOMEOWNERSHIP.COM VOLUME XLVI Number 3 APRIL / MAY 2012

April/May 2012

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Maryland Realtor® Magazine April/May 2012

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p 12

p 8 Legal Developments in Fair Housing

p 17 “Fair Housing Lives in Maryland” 2013 Calendar Contest

The Maryland Association of REAlToRs® www.mdrealtor.org The Voice for Real Estate® in Maryland

Consumer Website:WWW.MARYlANDHoMEoWNERsHIP.CoM

VolUME XlVI Number 3 APRIl / MAY 2012

Power Coldwell Banker

To learn more about how Coldwell Banker agents share promoting their business utilizing our

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©2011 Coldwell Banker Real Estate LLC. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT LLC.

550+

3M A R Y L A N D R E A L T O R ® April/May 2012

8.

President’s PerspectivePatricia Terrill

xxx xxx

Power Coldwell Banker

To learn more about how Coldwell Banker agents share promoting their business utilizing our

Advanced Technology Tools, visit Careerscb.com. 1-866-559-2272

Feel the

Join a leader and Discover the Difference

Feel the Power of our Global Reach exclusive to Coldwell Banker Associates:

Over 400+ Web Partners In 128 COuntrIes

On all 7 COntInents, reCeIve Our lIstIngs DaIlY.

©2011 Coldwell Banker Real Estate LLC. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT LLC.

550+

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4 M A R Y L A N D R E A L T O R ® April/May 2012

April / May 2012

table of contents

8F E A T U R E s 8 lEgAl DEVEloPMENTs IN FAIR HoUsINg

12

14 MARYlAND REAlToRs® PRoMoTE FAIR HoUsINg Fair Housing Protected Classes in Maryland

17 “FAIR HoUsINg lIVEs IN MARYlAND” 2013 Poster Contest

20 CAll FoR ENTRIEs MAR Prestigious Awards

D E P A R T M E N T s

3 PREsIDENT’s PERsPECTIVE

6 MAR 2012 lEADERsHIP TEAM

22 REgUlATIoN NEWs REALTORS® Support Family Farm in Court

23 MARYlAND REAl EsTATE CoMMIssIoN NEWs Maryland Code of Ethics Revision

24 REsIDENTIAl sAlEs Home Sales Increase in February

28 sNIPPETs & INDUsTRY TIPs

30 MRIs UPDATE Keeping Up With Keystone

32 CoMMERCIAl CoNNECTIoN

34 FRoM THE HoTlINE When in Doubt...Disclose

14

17

2012 Maryland Association of REAlToRs® leadership Team

6 M A R Y L A N D R E A L T O R ® April/May 2012

Carlton J. Boujai Jr.President - ElectEXIT Realty Prosperity group5300 Westview DriveSuite 105Frederick, MD [email protected]

J. Russell BoyceSecretary RE/MAX 10010665 Stanhaven Place White Plains MD [email protected]

Mary C. AntounChief Executive OfficerMaryland Association of REAlToRs® 200 Harry S Truman Parkway, Suite 200Annapolis, MD [email protected]

Cathy A. Werner Immediate Past President RE/MAX American Dream9414 Belair RoadBaltimore, MD 21236-1504410.529.7900Fax [email protected]

Patricia A. TerrillPresidentPrudential Carruthers REAlToRs®

7500 Coastal HighwayOcean City, MD 21842-2937410.524.7000Fax [email protected]

Maryland Association of REALTORS®

200 Harry S Truman Parkway | Suite 200Annapolis, MD 21401-7348

800.638.6425 | www.mdrealtor.org

Executive Leadership TeamPatricia A. Terrill | President

Carlton J. Boujai Jr. | President-ElectJ. Russell Boyce | Secretary

Carole A. Maclure | Treasurer Cathy A. Werner | Immediate Past President

Mary C. Antoun | Chief Executive Officer

EditorDeborah L. Hager | [email protected]

Advisory CommitteeRon Howard | Co-Chair

Lynette Bridges-Catha | Co-ChairYolanda Muckle | Vice Chair

Advertising & Publication DesignArt Comp & Design

Alison Cooper | Senior Designer1921 York Road, Timonium, MD 21093

410.252.4027, x103 | [email protected]

Mission StatementThe Maryland Association of REALTORS® exists to support all segments of its membership and their specialties. The Maryland Association of REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®:

■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners;

■ Assists members in ethically and professionally serving the public;

■ Promotes and preserves the right to own, transfer and use real property; and

■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations.

In principle and in practice, the Maryland Association of REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.

Maryland REALTOR® (USPS 0016-017) is published bimonthly by the Maryland Association of REALTORS®, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348.Member subscriptions of $3.81 are paid with annual dues.This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the Maryland Association of REALTORS®.Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request.While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless spe-cifically stated. ©2010 Maryland Association of REALTORS®, Inc.

Carole A. MaclureTreasurer greater Capital Area AssociationPioneer Realty Inc.17304 Evangeline Ave.Olney, MD [email protected]

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FAIRHousingHousing

Developments inLegal

When ‘Source of Income’ IS a Protected claSS under faIr

houSIng laW:

Currently, 12 states, the District of Columbia

and several Maryland localities prohibit housing

discrimination based on source of income. This

topic has raised many questions among real estate

professionals.

8 M A R Y L A N D R E A L T O R ® April/May 2012

9M A R Y L A N D R E A L T O R ® April/May 2012 9

Fair Housing Act

The 1968 Fair Housing Act makes it illegal to

make housing decisions based on one of seven

protected classes: race, color, sex, national

origin, religion, handicap and familial status.

Two additional protected classes were added in

1988: families with children and those with

disabilities. States and localities can expand

the number of protected classes beyond the

minimum federal protections; Maryland has

added marital status and sexual orientation.

In recent years, largely in an effort to address

the affordable housing shortage, several states

(and localities including Montgomery, Howard,

Frederick counties, City of Frederick and City of

Annapolis) now categorize ‘source of income’

as a protected class. At this writing, the 2012

Maryland General Assembly is considering

legislation that would define ”source of

income” to include any lawful source of money

paid directly or indirectly to, or on behalf of, a

renter or buyer of housing, including

government or private assistance, alimony,

child support or other compensation or benefit.

That includes low-income housing assistance

certificates and vouchers issued under the

United States Housing Act of 1937, commonly

known as Section 8 housing subsidies or the

Housing Choice Voucher program.

When source of income is a protected class, rental providers

may not refuse to rent to a person with a Section 8 voucher

merely because the person participates in the Section 8

program. However, Section 8 is a voluntary, federal rental

assistance program, and it is considered a business decision

of a private property owner to enter into a contract with

HUD that includes very specific terms and conditions for

property maintenance and administration. Recognizing

the regulatory burden that the program places on private

owners, Congress specifically made participation in the

program voluntary.1

REALTORS® join the National Multi Housing Council

and the National Apartment Association in taking the

following position regarding interpretation of source of

income as a protected class:

Such protection should not be interpreted to

compel a property owner to contract with the

federal government via participation in the Section

8 program.2

Typically, rental professionals apply uniform (non-

discriminatory) screening criteria, credit requirements and

previous rental history to all applicants. However, if a

seemingly neutral policy always excludes a certain protected

class, it may be deemed to violate the Fair Housing Act (FHA).

President’s Perspective Continued from page X

SOuRCE Of INCOME AND DISpARATE

IMpACT ANALySIS:

One way in which injured parties have dealt with discrimination

is by bringing disparate impact claims. In such cases, a prima

facie case of discrimination is established by showing that the

challenged practice of the defendant actually or predictably

results in illegal discrimination. This analysis focuses on facially

neutral policies that may have a discriminatory effect. Federal

courts allow claims under the Fair Housing Act on a disparate

impact theory by analogizing FHA to Title VII employment

claims, because both share a goal of reducing discrimination.6

While this theory has been applied to employment policies and

practices, it is unclear whether Congress intended the same

theory to be applied to housing.

A new HUD policy on disparate impact standards, proposed

in November 2011, will, if adopted, implement HUD’s

interpretation of the FHA, prohibiting housing practices that

have a discriminatory effect, even where there is no intent

to discriminate. In other words, FHA rules can be violated

by facially neutral practices that have a disparate impact on

protected classes.

Refusal to rent to certificate and voucher holders may have a

discriminatory impact under the FHA regulations. If a landlord

were to refuse to rent to Section 8 certificate and voucher holders

as a subterfuge for refusing to rent to an applicant (for example)

of a certain race, national origin, sex and/or the presence of

children in the family, that refusal would likely be a violation of

FHA rules. Even if the landlord’s refusal were not intentionally

designed to keep protected class members out of his buildings, but

had that effect, such refusal also may be a violation, regardless of

the owner’s reason for a denial.3

A successful voucher discrimination claim requires landlords

to eliminate their no-voucher policies to promote equal access

to housing between people who pay rent with vouchers and

those who pay with more traditional forms of income.4

Proponents of ‘source of income’ protection argue that people

with vouchers face discrimination similar to the discrimination

families with children once faced: landlords refused to rent

to them, thereby reducing the quantity and quality of their

housing options.5

A successful voucher discriminAtion clAim requires lAndlords to

eliminAte their no-voucher policies to promote equAl Access to

housing between people who pAy rent with vouchers And those who

pAy with more trAditionAl forms of income.

10 M A R Y L A N D R E A L T O R ® April/May 2012

11M A R Y L A N D R E A L T O R ® April/May 2012 11

Sources:

1. http://www.nmhc.org/Content/ContentList.cfm?NavID=599

2. http://www.nmhc.org/Content/ContentList.cfm?NavID=599

3. MAR Legal Hotline FAQs

4. Tamica Daniel, Bringing Real Choice to the Housing Choice Voucher Program: Addressing Voucher Discrimination Under the Federal Housing Act, 98 Geo. L.J. 769, 792 (2010).

5. [See Isabelle M. Thabault & Eliza T. Platts-Mills, Discrimination Against Participants in the Housing Choice Voucher Program: An Enforcement Strategy, 15 POVERTY & RACE 11, 11, 13 (2006), available at http://www.prrac.org/newsletters/janfeb2006.pdf; see also Stephanie Brien, Legal Housing Discrimination?: Racine-Area Landlords Can Deny People on Housing Assistance, THE JOURNAL TIMES, Aug. 11, 2008, available at http://www.journaltimes.com/news/local/article_0bd4abbe-ef04-5f5c-88f1-03aaed0e1389.html.]

6. Daniel, supra at 793.

7. http://www.nmhc.org/Content/ServeContent.cfm?isPrinterFriendly=1&ContentItemID=6417

There are several approaches to determine liability under

a disparate impact claim. HUD has proposed applying a

three-step so-called “burden shifting” approach. Once a

plaintiff has shown a practice to have a disparate impact on

a protected class, the defendant would have the burden of

proving the challenged practice is necessary for legitimate,

nondiscriminatory interests. A plaintiff could still prevail,

however, by demonstrating that another policy or decision

could serve these legitimate nondiscriminatory interests in a

less discriminatory manner.7

Housing providers, lenders and local municipalities are

concerned over potential changes to the treatment of disparate

impact. Potentially, it could affect zoning ordinances,

multifamily development, resident screening, credit scoring,

mortgage lending and more.

Helping Clients Take the Right Step on the Path to HomeownershipClosing cost assistance of at least $5,000 and 30-year fixed rate mortgages!

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800.638.7781www.mmprogram.org

MMP is a program of the Maryland Department of Housing and Community Development

EQUAL HOUSINGOPPORTUNITY

A sea of umbrellas on Lawyer’s Mall in Annapolis

Jamie Gregory, Deputy Chief Lobbyist for the National Association of REALTORS® joins rallying Marylanders in support of the Save MD MID campaign

Mary Antoun, CEO, Maryland Association of REALTORS®

Yolanda Muckle, photographer, member of the Prince George’s

County Association

Joan Ostenso (left), Executive Officer of Prince George’s County

Association of REALTORS®,, and Alease Bowles (right), President

of Prince George’s County Association of REALTORS®

Buzz Mackintosh, Chairman, RPAC Board of Trustees

12 M A R Y L A N D R E A L T O R ® April/May 2012

1313M A R Y L A N D R E A L T O R ® April/May 2012Jim Skirven, Howard County Association leads the chant

“Save M-D, M-I-D”

MAR President Pat Terrill thanks over 400 MAR members and MD homeowners for traveling to Annapolis to rally against the reduction of the Mortgage Interest Deduction

A group of REALTORS® speak to cameraman about

the importance to rally against the MID reduction.

2008 MAR President and current Treasurer speaks to an NPR reporter. Carroll County Association member Janice Kirkner looks on.

Rick Rall, chairman of the MAR Legislative Committee and 2012 President Pat Terrill engage the crowd.

Maryland State Comptroller Peter Franchot is interviewed by

local television reporter

Senator Ed Reilly, District 33, Anne Arundel County,

speaks out against reducing the MID

Senator Nancy Jacobs, District 34, Cecil and Harford Counties, speaks on behalf in support of Save the MID

Senator Allan H Kittleman, District 9 Howard and Carroll Counties, speaks, MAR President-elect Carlton Boujai looks on.

DC Association of REALTORS® Executive Officer Ed Krauze attends rally supported by many DC members.

Real Estate Commissioner Nancy Simpers (left) and fellow Cecil

County member Linda McKinnon

MAR Lobbyist Bill Castelli explains the need to rally and stresses the need to be active in participating in the Association’s calls to action.

Talbot

BaltimoreCounty

Worcester

Wicomico

City ofFrederick

Carroll

BaltimoreCity

Kent

Maryland REALTORS® Promote

Howard

PrinceGeorge’sAnne

Arundel

City of Annapolis

QueenAnne’s

MontgomeryWashington

St. Mary’s

Caroline

Somerset

Allegany

Cecil

Charles

Harford

Calvert

Garrett

Dorchester

FrederickCounty

FAIR HOUSING PROTECTED CLASSES IN MARYLAND14 M A R Y L A N D R E A L T O R ® April/May 2012

15

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Apartment building owners who have not been involved in the design and construction

of units may be held liable under the Fair Housing Act for continuing to offer units that are inaccessible to people with disabilities. [National Fair Housing Alliance vs. S.C. Bodner Co., et al.; February 17, 2011, U.S. District Court for the Southern District of Indiana]

Reasonable accommodation may be granted to a disabled veteran to keep a small dog in a rented condominium unit to help him cope

with the effects of depression and anxiety disorder. The consent decree requires implementation of a new reasonable

accommodation policy that does not charge pet fees to owners of service or assistance animals and does

not require them to purchase liability insurance. [HUD vs. Fox Point at Redstone Association, Inc.; February 27, 2012, U.S. District Court for the District of Utah]

The new federal Equal Access to Housing Rule (effective March 2012) applies in Maryland to certain federal housing and related programs:

• OwnersandoperatorsofHUD-assistedorHUD-insuredhousingare prohibited from discriminating against an applicant of a residence based on sexual orientation or gender identity.

• Lenders offering Federal Housing Administration (FHA)-insuredmortgages are prohibited from considering sexual orientation or gender identity in determining a borrower’s eligibility.

• The definition of “family” is clarified to ensure thatotherwiseeligibleparticipantsinanyHUDprogramswillnot be excluded based on marital status, sexual orientation or gender identity.

15M A R Y L A N D R E A L T O R ® April/May 2012

President’s Perspective Continued from page XFAIR HOUSING PROTECTED CLASSES IN MARYLAND

City/County Additional Protections Afforded by Laws of Counties/ Incorporated Cities in Addition to Federal and State Laws

Allegany X

Anne Arundel X

City of Annapolis lawful income

Baltimore County age, creed

Baltimore City age, ancestry, gender identity or expression

Calvert X

Caroline X

Carroll X

Cecil X

Charles X

Dorchester X

Cambridge age, ancestry, creed, use of guide dog by the blind

Frederick County age, source of income

City of Frederick source of income

Garrett X

Harford age, creed, occupation, personal appearance, political opinion

City/County Additional Protections Afforded by Laws of Counties/ Incorporated Cities in Addition to Federal and State Laws

Howard age, creed, gender identity or expression, occupation, personal appearance, political opinion, source of income

Kent age, ancestry

Montgomery age, ancestry, family responsibility, gender identity, presence of children, religious creed, source of income

Rockville age, ancestry, creed, presence of children

Prince George’s age, occupation, personal appearance, political opinion

Queen Anne’s X

Saint Mary’s X

Somerset X

Talbot X

Washington X

Hagerstown age

Wicomico X

Worcester X

FEDERAL PROTECTIONrace, color, national origin, sex (gender), religion, familial status, physical or mental disability

ADDITIONAL STATE PROTECTIONmarital status, sexual orientation

“X” indicates that this county has no additional protected classes other than those recognized under the state and federal laws. * Equal Access to Housing Rule (March 2012) extends protection for sexual orientation and gender identity to HUD-assisted or HUD-insured housing and FHA lending. Age Discrimination Act of 1975 prohibits discrimination on the basis of age in programs or activities receiving federal assistance.

16 M A R Y L A N D R E A L T O R ® April/May 2012

Katelynn Cherry • Mid-Shore Board4H Saddle & Paws Club • 5th Grade

Mariclare Anderson Pen-Mar Regional AssociationHome School • 4th Grade

“Fair Housing Lives in Maryland”

2013 PosteR Contest

Each year, members of the Maryland Association of REALTORS® (MAR) Equal Opportunity/Cultural Diversity Committee partner with local schools and organizations to encourage and promote understanding of equal opportunity in housing through a Poster Contest. The theme for the poster drawings is “Fair Housing Lives in Maryland.” Winners are chosen from entries submitted by the MAR local boards and associations. Fourteen winners were chosen, including one to appear on the cover of a colorful calendar.

Students from around the state in grades K-8 are eligible to participate. They are asked to illustrate the theme and what it means to them. Winners are awarded with certificates and a gift card co-sponsored by BB&T Bank. Winners, their family members, faculty, REALTORS® and dignitaries will be invited to attend a recognition ceremony at the Maryland Statehouse. This April marks the 44th anniversary of the enactment of the federal Fair Housing Law, Title VII of the Civil Rights Act of 1968, prohibiting discrimination on the basis of race, color, creed, national origin, sex, familial status and handicap and encourages fair housing opportunities for all. The Calendar Poster Contest is a visible way for Maryland

REALTORS® to express their professional commitment to Fair Housing. It has become popular with schools and communities as well as the real estate profession as a highly effective way to raise public awareness of the laws prohibiting housing discrimination. And it celebrates our commitment to making housing available to all. The more than 12,000 free calendars are distributed statewide and nationally to promote the principles of Fair Housing.

Calendar Contributions:Join your colleagues by giving a contribution to help defray the 2013 calendar production costs. Your name and company will appear on the “contributor” recognition page of the calendar. 12,000 calendars will be distributed.

Find the Contribution form: www.mdrealtor.org/housing&statistics/fairhousing/fairhousingcalendarsponsorship.”

17M A R Y L A N D R E A L T O R ® April/May 2012

Sara MillerGreater Capital Area AssociationSt. Elizabeth School • 5th Grade

Rhiannon Elder Southern Maryland AssociationTown Creek Elementary • 3rd Grade

Alexis Phillips Greater Baltimore BoardMars Estates PAL Center • 6th Grade

Megan Despres • Harford County Association • William Paca/Old Post Road Elementary • 4th Grade

Kerri Kordyban • Garrett County BoardBroadford Elementary School • 4th Grade

Alexander Michel Howard County Association Harpers Choice Middle School • 7th Grade

Alexander McCullough Coastal AssociationThe Salisbury School • 4th Grade

Jasmine Hill• Cecil County BoardElkton Middle School • 7th Grade

Saja Kharma • Prince George’s County Association • Thomas Johnson Middle School • 8th Grade

Stepanie Edsall • Anne Arundel County Association • St. Martin’s Lutheran School Grade Kindergarten

Jennifer Dinterman Frederick County AssociationWalkersville Middle School • 8th Grade

Dustin Oddis • Carroll County AssociationFriendship Valley Elementary School4th Grade

18 M A R Y L A N D R E A L T O R ® April/May 2012

Don’t Just Take Our Word For It...

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©2012 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company Equal Housing Opportunity. Owned And Operated By NRT LLC. 5560BALT-3/12

“ What a unique and special place to work! I have never experienced a higher level of professionalism and camaraderie. We learn from one another, we work as a team and we have fun doing it. From our exceptional training and education to our top-notch sales support and technology tools, we enjoy the best of the best. We value respect, integrity and honesty. I am proud to be part of the Coldwell Banker® team.”

Tony Ziolkowski, Sales Associate Baltimore Inner Harbor Office

“ I joined Coldwell Banker because of the people. I work with a very professional, warm and friendly group, and we benefit from a wonderful support staff and office manager. Being part of a large organization offers great advantages, such as top-notch technology and brand recognition. Coldwell Banker offers the support needed for agents to earn the highest possible income for their families.”

Melvin Knight, Sales Associate Roland Park Office

“ I came to Coldwell Banker because of all the great tools that help agents grow their business. I stay here because of the constant advancement in technology and the integrity of the management. I worked with three other organizations before finding my home at Coldwell Banker.”

Tricia Roe, Sales Associate Columbia Office

5560_MD Realtor Ad Testimonial Page.indd 1 3/8/12 2:19 PM

MAR PRESTIGIOUS AWARDS

ALL FORMS CAN BE PRINTED, COMPLETED, AND SUBMITTED ONLINE, TO MAR.

MAR takes great pride in awarding industry honors to outstanding practitioners in the real estate field. The awards are presented during the

Annual Conference in Ocean City. We encourage all Maryland REALTORS® to apply. To learn more about each award, go here: www.mdrealtor.org/

Events/2012AnnualConference/AwardApplications/AwardsSummary

Do you serve your Community? Tell us about it, apply for the MAR Community Service Award or nominate a fellow REALTOR® that you know is working hard giving back to their Community. This award honors individual REALTOR® members who give unselfishly of their time to assist the communities in which they live and work. There is no limit to the number of entries that can be submitted from one Association or firm in this category. All nominees submitted to Associations must be submitted to MAR.DEADLINE - June 29, 2012

The REALTOR® of the Year (ROTY) Award recognizes REALTORS who provide continuous, dedicated service to the industry to enhance the quality of the profession. One ROTY application is required to be submitted by each local Association to be entered in the MAR competition. ONE (1) COLOR PHOTO (any size) in digital format must accompany the entry form to be used for promotional purposes. The recipient of the State Award will represent Maryland at a recognition ceremony during the NATIONAL ASSOCIATION OF REALTORS® (NAR) Annual Convention.DEADLINE - JUNE 24, 2012

Special note: Local Associations are encouraged to continue awarding the Distinguished Sales Associate (DSA), if desired.

Recognition is a positive reward for a job well done. It is vital that we honor those individuals who have given outstanding service to the real estate industry and the Local Associations. If you have comments or questions, please contact the MAR Communications Department at 800-638-6425.

ADDITIONAL AWARDS (Selected at the State level)

The Community Service and REALTOR® Excellence (CARE) Award - DEADLINE - June 29, 2011 – The CARE Award - is presented to Local Associations for its member’s collective community service and charitable actions. The award was developed to raise the profile of REALTORS® and the REALTOR®

organization by focusing on Associations that have demonstrated an extraordinary record through direct local Association community service involvement. The activities complied by the Association may include endeavors by individual REALTORS® groups, teams, offices who volunteer in their communities. If you volunteer for charities within your community, please contact your local association. Submissions are made through the MAR local Associations.

20 M A R Y L A N D R E A L T O R ® April/May 2012

21M A R Y L A N D R E A L T O R ® April/May 2012 21

Building on the Strength of our MembersCOmmITTEE YEAR: 2012 - 2013

“Mar Volunteers: we want you!”

EASY ON-LINE FORM – NOW AVAILABLE

GO TO MAR’S WEBSITE – www.mdrealtor.org – and click on “MAR Volunteers We Want You!”

SIGN UP — Please be sure to give us 2, but no more then 3 committees that you are interested

in serving on, every attempt will be made to accommodate your request for at least one committee

assignment (some committees may have specific member qualifications).

COMPLETE AND SUBMIT – It’s that easy!You will be emailed

an “Instant Confirmation” when your form is successfully submitted.

DEADLINE: Wednesday, May 9, 2012

REmINDER — ALL CURRENT COmmITTEE mEmBERS mUST COmPLETE A FORmCommittee selections are prioritized by qualifications and date received

You will receive a letter confirming your committee appointment by August 24, 2012.

12

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21M A R Y L A N D R E A L T O R ® April/May 2012

22 M A R Y L A N D R E A L T O R ® April/May 2012

The Maryland Association of REALTORS® will help defend eastern shore

farmers sued by environmental activists under provisions of the Clean

Water Act. The case has important land use implications and could have a

significant impact on farm community property values.

The case was filed in Baltimore U.S. District Court against Perdue Farms,

Inc. and Alan and Kristin Hudson. The Hudsons are contract farmers for

Perdue on a 293 acre farm just outside Berlin, Maryland. In 2009, a local

representative of the nationwide non profit Waterkeeper Alliance was

conducting an aerial survey of the Eastern Shore and noticed a large pile of

material that looked like chicken manure alongside a drainage ditch on the

Hudsons’ farm. The drainage ditch feeds into a tributary of the Chesapeake

Bay, the Franklin Branch of the Pocomoke River. Water samples from

ditches adjacent to the Hudson Farm taken soon after the aerial survey were

found to contain high levels of pollution, which the Waterkeeper Alliance

eventually claimed were a product of the Hudson Farm poultry operation.

The pile of material thought to be chicken manure proved to be a treated

sludge product obtained from the Ocean City wastewater treatment facility.

A fine levied against the Hudsons by the Maryland Department of

Environment was reversed because the material was legally obtained and

intended for use to balance the PH of soil.

The trial in this case has been postponed and will not be rescheduled until

the parties participate in a settlement conference now set for late in March.

If the case goes to trial, the Waterkeeper Alliance will have the burden of

REALTORS® Support Family Farm in Court

proving that the Hudsons’ poultry farming caused water pollution that

flowed into the Pocomoke River. If the Waterkeeper Alliance succeeds, the

Hudsons and Perdue will be liable for the Waterkeeper Alliance’s attorney

fees in addition damages and their own legal bills. It appears likely that the

Hudsons will have no alternative but to declare bankruptcy if they lose this

case. On the other hand, the Waterkeeper Alliance has relied in part on law

students from the University of Maryland to pursue this legal action.

Last October, the Coastal Association of REALTORS® brought the Hudsons’

case to the attention of the MAR Legal Action Fund Committee. The

Committee administers a dedicated fund set aside to assist in court cases

that could have an impact on the real estate industry. On the Eastern Shore

of Maryland, where agriculture is an important component of the economy,

a test case like the law suit against the Hudsons could undermine property

rights of farmers and thereby destabilize the real estate market in our region.

MAR’s Executive Committee approved the Legal Action Fund

recommendation to make a $25,000 contribution to the Hudson Farm

defense fund as an expression of support for the role of farming in our local,

state and national real estate industry. For additional information regarding

the case of Assateague Coastkeeper, et. al v. Alan and Kristin Hudson Farm,

et. al. or the Maryland Association of REALTORS® Legal Action Fund,

please contact [email protected].

Mark Feinroth, Esquire, Director of legal and Regulatory Affairs

Maryland Association of REAlToRs®

Regulation NewsMark Feinroth, Esquire

Maryland Code of Ethics Revision

23M A R Y L A N D R E A L T O R ® April/May 2012

REALTORS® Support Family Farm in Court

Maryland Real Estate Commission NewsKatherine Connelly

The Real Estate Commission has finalized amendments to two provisions

of the Code of Ethics regulations governing licensee conduct.

The first change is to the section of the Code of Ethics addressing

“Relations to the Public” (COMAR 09.11.02.01). The paragraph that

prohibits discrimination against any person or group of persons on the

basis of characteristics that include race, color, creed, religion, national

origin, sex, handicap and familial status was updated to coincide with

all other Maryland anti discrimination law and now refers to State

Government Article §20-402. This modification has the effect of

adding “sexual orientation” to the protected classifications; any future

changes in this statute will automatically be incorporated into the

regulation by reference.

The Commission’s second Code of Ethics modification, in the section

“Relations to the Client,” (COMAR 09.11.02.02) alters the disclosure

requirements for licensees and employees of a licensee. The new rule

requires a licensee seeking to acquire an interest in real estate to provide

a written disclosure of the licensee’s licensing status to the seller or lessor

not later than the time an offer is submitted. The same disclosure is

required by the licensee when the licensee is representing a member of the

licensee’s immediate family or an entity in which the licensee has an

ownership interest. Immediate family is defined in the regulation as

licensee’s parent, grandparent, spouse, domestic partner, child, child’s or

stepchild’s spouse.

The revised Code of Ethics also requires a licensee to disclose his status

when selling or leasing property owned by the licensee, an immediate

family member of the licensee or an entity in which the licensee has an

ownership interest. Employees of licensed real estate professionals and

brokerage companies are also required to disclose their employment when

selling or leasing property they own.

The ethics regulation will now require an employee of a real estate

licensee or brokerage company to disclose that employment to the seller

or lessor when purchasing or leasing a property.

These revisions became effective March 19, 2012. The regulation allows

the licensee or employee to provide the notice to prospective buyers or

renters through a multiple listing service advertisement. The regulation

does not require either use of an MLS or that the new notice appear in the

MLS listing. It does however require that the notice be in writing.

Please feel free to contact me if you have any questions regarding these

revisions to the Code of Ethics or any matter involving the Real Estate

Commission. I can be reached by email at [email protected].

Katherine Connelly is the Executive Director of the Maryland Real Estate Commission

For more information, visit http://www.dllr.state.md.us/license/mrec

Maryland Code of Ethics Revision

24 M A R Y L A N D R E A L T O R ® April/May 2012

Residential SalesAnirban Basu

After last year’s economic soft patch and innumerable

disappointments, most economic indicators suggest

that the U.S. economy is pushing ahead in 2012 despite

a sea of headwinds. The Bureau of Labor Statistics

reported that the nation added 227,000 jobs in February,

after adding 284,000 new jobs in January.

Unemployment is down to 8.3 percent, falling for five

consecutive months through January of this year.

Despite a growing labor force, unemployment in the

nation remained steady in February.

The good news is that Maryland businesses are hiring. According to the

most recent data available, Maryland’s economy added 3,100 jobs in

December, 25,200 jobs on a year-over-year basis. This translates into 1.0

percent job growth for the year, still short of the 1.4 percent tally at the

national level but far better than in earlier periods.

Predictably, the improving labor market is helping to lift home sales in

Maryland. Unit sales were up 2.5 percent statewide in February on a year-

over-year basis, with fourteen jurisdictions experiencing sales increases.

These included Garrett (77.8%), Carroll (41.5%), Baltimore (33.2%),

Howard (22.6%), Allegany (20.8%), Worcester (15.2%), Frederick (7.1%),

Anne Arundel (6.6%), and Caroline (6.3%) counties. A number of these

jurisdictions are Baltimore area suburbs, communities that have been

among the state’s better economic performers recently. The Eastern Shore

also participated in this sales rally, including Talbot (64.7%), Queen Anne’s

(50.0%), Kent (44.4%), Dorchester (33.3%), and Wicomico (11.1%) counties.

Among the jurisdictions with year-over-year unit sales declines in

February were Somerset (-40.0%), Charles (-23.9%), Baltimore City

(-18.4%), Washington (-17.6%), St. Mary’s (-15.8%), Calvert (-10.2%),

Cecil (-7.0%), Montgomery (-3.8%), Harford (-3.2%), and Prince George’s

(-1.8%). There does not appear to be a common trait among each of these

jurisdictions, though several are closely aligned with the federal

government and its workforce, including Montgomery, St. Mary’s, Charles

and Prince George’s counties.

Growth in sales appears to have been due in part by increasingly attractive

pricing. In January, average Maryland sales price was virtually unchanged,

down 0.1 percent, while median price was down only slight more, 0.6

percent, suggesting that prices are moving into line with demand. Of

Maryland’s 24 jurisdictions, 11 registered a year-over-year decline in average

sales price in January, and 12 recorded a decline in median sales price.

The greatest decline in January average sales price was in Somerset

County, with a drop from $177,357 a year ago to $134,870 this January.

However, this reflects only a handful of sales; January is a traditionally

slow month for real estate sales transactions.

The largest increases in average sales price were in Dorchester (97.3%) and

Caroline (86.3%) counties. In Dorchester County, average price rose from

$116,208 in January 2011 to $229,250 in January 2012. In Caroline

County, average price increased from $95,653 to $178,219 one year later.

This is not necessarily a reflection of rising home prices (at the individual

unit level), but is more likely a reflection of the changing mix of purchases,

as buyers feel more comfortable with their economic circumstances and

near record low mortgage rates allow them to pursue homes upmarket.

Home Sales Increase in February

25M A R Y L A N D R E A L T O R ® April/May 2012

There were a handful of jurisdictions that experienced substantially lower

prices in February. In Dorchester County, for instance, average sales price

declined (?) 41.3 percent, and median price dropped 30.7 percent. In

Baltimore County, average price fell 16.2 percent while median price

slipped 10.3 percent. In Talbot County, average price was off 12.7 percent

while median price dipped 12.9 percent. In Howard County, average price

declined 10.4 percent while median price was down 12.5 percent.

Active inventory of unsold homes also continues to fall for the state as a

whole. Ultimately, that will translate into more stable prices and growing

urgency among prospective buyers faced with the potential of rising

prices. In February 2011, months of inventory stood at 11.2 months. One

year later, inventory had dipped to 8.3 months. Many jurisdictions are

still associated with over two years of inventory, however, including

Somerset (40 months), Garrett (32.3 months), and Kent (26 months)

Residential SalesAnirban Basu

Price dynamics were similar in February, with 16 jurisdictions reporting

year-over-year declines in average sales prices and 12 reporting year-over-

year declines in median prices. Statewide, average price was down 1.9

percent in February. However, though median sales prices were down in

12 jurisdictions, median price statewide actually increased 2.0 percent

from February 2011. Certain jurisdictions produced significant year-over-

year increases in both average and median sales price in February,

including Baltimore City, where average price increased 28.5 percent and

median price rose 112.3 percent (from $53,000 to $111,551). This is

probably largely a reflection of the dip in the proportion of sales

characterized as distressed sales. In Somerset County, average price was

up 68.1 percent while median sales price rose 62.0 percent. In Wicomico

County, average price increased 17.1 percent, while median sales price

was up 8.3 percent.

Home Sales Increase in February

Contact Paul Cooper | [email protected] | 908 York Road, Towson, MD | 410-828-4838 | realestate.alexcooper.com

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ALEX-2012-14564 MD_Realtor_Association_7.75x4.75_rev.indd 1 3/6/12 2:46 PM

26 M A R Y L A N D R E A L T O R ® April/May 2012

Residential sales Continued from page 23

including high and potentially rising oil prices and circumstances

surrounding Iran, North Korea and other global hotspots. Correspondingly,

the ongoing recovery remains shockingly fragile, which helps explain the

Federal Reserve’s ongoing unwillingness to raise short-term interest rates.

The recent run-up in gas prices serves as a reminder that it doesn’t take

much to fundamentally alter the economy’s trajectory.

That said, economic momentum picked up during the latter stages of

2011. Financial market performance was more than solid in January and

February, indicating a growing degree of comfort with U.S. economic

circumstances and prospects. Job creation, auto sales and spending

generally have continued to hold up. Business in America is gradually

normalizing and Maryland’s economy has also gathered momentum in

recent months.

Anirban Basu, sage Policy group, Inc.

counties. Granted, these figures are probably inflated by weak February

2012 sales, but they indicate that housing market equilibrium continues

to elude much of Maryland.

Looking AheadAmong other things, continued economic progress will help improve

confidence among prospective homebuyers. Confidence is already

building in much of the state, including in Central Maryland. Pending

sales in Maryland were up on a year-over-year basis in both January and

February. In Anne Arundel County, pending units totaled 475 in February

2011; one year later, the corresponding figure was 604. In Baltimore

County, pending units have risen from 526 to 706 over the same period.

In Prince George’s County, pending sales are up from 950 to 1,188.

The outlook for the broader economy has become more positive in recent

months. An object in motion tends to stay in motion, and the U.S.

economy is presently on the move. Granted, many headwinds remain,

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27M A R Y L A N D R E A L T O R ® April/May 2012

January 2012 vs. 2011

UnITS AvErAgE PrICE

2012 2011 Change 2012 2011 Change

16 31 -48.4% $99,375 $90,618 9.7%

299 306 -2.3% 346,579 375,482 -7.7%

286 388 -26.3% 138,074 110,513 24.9%

396 355 11.5% 214,711 239,788 10.5%

44 50 -12.0% 291,897 291,401 0.2%

16 17 -5.9% 178,219 95,653 86.3%

78 61 27.9% 242,091 274,710 -11.9%

40 46 -13.0% 227,240 206,680 9.9%

92 93 -1.1% 228,665 233,231 -2.0%

20 21 -4.8% 229,250 116,208 97.3%

120 138 -13.0% 227,646 249,743 -8.8%

27 18 50.0% 333,937 398,779 -16.3%

121 150 -19.3% 249,454 250,001 -0.2%

154 143 7.7% 384,627 381,088 0.9%

9 9 0.0% 205,994 182,067 13.1%

530 557 -4.8% 415,887 436,443 -4.7%

526 542 -3.0% 179,834 185,057 -2.8%

32 23 39.1% 370,750 275,104 34.8%

10 7 42.9% 134,870 177,357 -24.0%

48 68 -29.4% 273,193 258,500 5.7%

29 17 70.6% 498,889 385,034 29.6%

72 73 -1.4% 162,198 139,695 16.1%

44 42 4.8% 144,806 128,685 12.5%

65 74 -12.2% 266,572 288,360 -7.6%

3,074 3,229 -4.8% $266,041 $266,216 -0.1%

Figures reflect resales and new properties. Residential resales

are reported by MRIs® and local boards Mls systems.

COUnTy

Allegany

Anne Arundel

Baltimore City

Baltimore County

Calvert

Caroline

Carroll

Cecil

Charles

Dorchester

Frederick

Garrett

Harford

Howard

Kent

Montgomery

Prince George’s

Queen Anne’s

Somerset

St. Mary’s

Talbot

Washington

Wicomico

Worcester

TOTAl

February 2012 vs. 2011

UnITS AvErAgE PrICE

2012 2011 Change 2012 2011 Change

29 24 20.8% $73,597 $82,754 -11.1%

339 318 6.6% 317,321 345,392 -8.1%

332 407 -18.4% 143,386 111,551 28.5%

425 319 33.2% 215,899 257,762 -16.2%

44 49 -10.2% 259,744 283,008 -8.2%

17 16 6.3% 142,321 152,777 -6.8%

75 53 41.5% 259,917 262,380 -0.9%

40 43 -7.0% 190,347 197,009 -3.4%

89 117 -23.9% 227,356 213,133 6.7%

24 18 33.3% 112,892 192,482 -41.3%

166 155 7.1% 230,000 230,855 -0.4%

16 9 77.8% 278,250 309,667 -10.1%

120 124 -3.2% 225,936 248,351 -9.0%

163 133 22.6% 368,968 411,965 -10.4%

13 9 44.4% 220,415 401,101 -45.0%

505 525 -3.8% 391,552 390,022 0.4%

540 550 -1.8% 168,409 181,496 -7.2%

30 20 50.0% 333,441 261,576 27.5%

6 10 -40.0% 182,250 108,390 68.1%

53 63 -15.9% 252,548 231,088 9.3%

28 17 64.7% 453,948 520,159 -12.7%

70 85 -17.6% 143,609 143,583 0.0%

40 36 11.1% 153,453 131,032 17.1%

91 79 15.2% 272,821 301,359 -9.5%

3,255 3,179 2.4% $249,648 $254,588 -1.9%

Figures reflect resales and new properties. Residential resales

are reported by MRIs® and local boards Mls systems.

COUnTy

Allegany

Anne Arundel

Baltimore City

Baltimore County

Calvert

Caroline

Carroll

Cecil

Charles

Dorchester

Frederick

Garrett

Harford

Howard

Kent

Montgomery

Prince George’s

Queen Anne’s

Somerset

St. Mary’s

Talbot

Washington

Wicomico

Worcester

TOTAl

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30 M A R Y L A N D R E A L T O R ® April/May 2012

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32 M A R Y L A N D R E A L T O R ® April/May 2012

Financing Still Driving Commercial Sales for Private and Institutional Investors

Commercial ConnectionDavid J. Fritz, CCIM, SIOR

The investment sales market continues to be split with the volume of

sales being dramatically higher for those appealing to institutional buyers

when compared with smaller assets that appeal primarily to private

market buyers.

As a way to highlight this contrast, we compared the number of

commercial real estate transactions in the greater Baltimore market area

both over $10 million (which we are somewhat arbitrarily defining as

“institutional” in size) and under $10 million (those being smaller assets

more typically appealing to private investors).

Baltimore Market Region

The graph shows that in terms of volume, institutional sales have

recovered in a dramatic way that private market sales have not matched.

After falling to 35 percent of their 2006-2007 level in 2009, institutional

sales were back up to 85 percent of the pre-crash volume in 2011.

In contrast, private market sales are on track to remain still well off pre-

crash levels in 2011 at about 49 percent of that 2006-2007 level.

Financing (or lack of it) is a primary driver of the volume of investment

sales. Private market buyers are more dependent on financing than their

institutional brethren. In 2011, there remained fewer sources of financing

for private market buyers when compared to 2006-2007 and today’s

sources are lending much more cautiously and are willing to permit less

leverage than before.

Things are improving incrementally. There

are more sources of financing this year than

last year, but most private market investors

are still depending on banks and, to a lesser

extent, insurance companies to finance their

acquisitions. This is in contrast to pre-2008

when a major source of financing a private

market transaction was Wall Street-originated

securitized CMBS financing which was

attractive thanks to low rates, long

amortizations often including long periods of

interest-only debt service, with no personal

recourse required.

33M A R Y L A N D R E A L T O R ® April/May 2012 33

Commercial ConnectionDavid J. Fritz, CCIM, SIOR

troubled banks and CMBS loans in the greater Baltimore-Washington area

compared with other major markets, thanks to the insulating effect of the

Federal Government as a demand driver. Those troubled loans that do

exist are moving through lender’s workout process at a glacial pace, while

ever-more bad loans come to maturity. Maturity defaults are indeed the

biggest sore spot with most of these loans being “extended and pretended”

as long as there is adequate cash flow to carry the loan.

When distressed assets are disposed of through loan or real estate sales,

there are few true bargains as lenders find every reason to drag their feet

on taking these write-downs. CMBS special servicers are the most

notorious culprit of this strategy. They have little incentive to dispose of

troubled assets in a timely manner and every incentive to continue

managing a bad asset and collecting their asset management fee. Bad

CMBS assets language in special servicing in months or even years, many

times despite the fact that values continue to erode.

Unlike private market buyers, institutional investors have become

frenzied buyers of real estate in 2011, increasing their allocation to real

estate to “chase” higher yields than they can achieve through historically

low bond yields. Due to its status as a global gateway, Washington, DC,

remains one of the hottest investment markets in the country for

institutional investors. Baltimore’s status as one of the busiest deep water

ports in the nation makes it an attractive market in particular for

institutional buyers of warehouses.

Institutional buyers, who made acquisitions in 2011, typically underwrote

little to no asset appreciation in the near term. They intended to be long-

term holders and focused on assets they perceived as risk free. Trophy

Washington, DC, CBD office buildings were big beneficiaries of the market

as well as trophy quality retail centers in the most affluent areas.

Apartments remain the hottest property type, with buyers recognizing that

everyone needs a place to live, and that the declining residential real estate

market is actually creating more renters. Attractively priced government-

backed mortgage financing is also fueling appetite for this product.

Unfortunately, in the past few months, the economic crisis in Europe has

tarnished the recovery in the investment sales market. We are seeing

pullback from all categories of buyers who are taking a “wait and see”

attitude toward these developments.

David J. Fritz, CCIM, sIoR, is a Principal with NAI KlNB in Columbia, MD

In the private market arena, there has been a flight to quality: yield

expectations and capitalization rates fell to pre-crash 2006-2007 levels for

most attractive smaller assets such as well-located, high quality, retail

strip centers or assets leased on a long-term net-lease basis to companies

with excellent credit.

The solid single digit returns tolerated by institutional investors investing

in well-leased, high quality assets are not enough for private market

buyers who are looking to create value and generate entrepreneurial

returns. The best way to generate these kinds of returns is by leasing up

vacant space. The sluggish economy is yielding a still-anemic leasing

market. As such, buildings with significant vacancy that once generated

a bidding war among investors are languishing on the market.

Many of these private entrepreneurial investors had hoped for a wave of

opportunistic investment opportunities in the wake of the 2006-2007

crash. However, it has turned out that there have been relatively few

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34 M A R Y L A N D R E A L T O R ® April/May 2012

From the HotlineCharles A. Kasky, Esquire

Maryland real estate licensees, however, have entirely different obligations concerning disclosure of property conditions. Under the Real Estate Brokers Act, a licensee must disclose to all parties material facts the licensee knows or should know. The Real Estate Commission has said that this obligation requires a licensee to make a reasonable effort to ascertain all material facts concerning every property for which the licensee accepts agency. A material fact is anything that may affect the value of the property or a party’s decision to buy or sell the property (i.e., the terms or conditions on which the party would buy or sell).

Under this standard, a licensee who comes into possession of material facts must disclose those facts to all parties. You and the seller received the inspection report. The law requires you to evaluate the conditions cited in the report in light of the definition of material facts I have provided above, and disclose to prospective purchasers the conditions that meet the definition. I know this is not a popular position to take, but it is clearly the law. For purposes of risk management, we recommend this disclosure be in writing and that you obtain an acknowledgment of receipt from the buyer.One final point. Before disclosing any material fact, first ask yourself: “What’s the fact?” In this case, it’s not simply that a condition exists, because you have no first-hand knowledge of it. Every home inspection report is an expression of the inspector’s opinion regarding the property. Therefore, your disclosure should begin with a statement like “In the opinion of a previous home inspector, the following material facts concerning the property exist.” Applying this analysis to any situation can insulate you from allegations that you failed to comply with your legal obligation to avoid error, exaggeration, misrepresentation or concealment of material facts.

Charles A. Kasky, Esquire, Vice President of legal Affairs

Maryland Association of REAlToRs®

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Q. As a listing agent, I struggle with how my duty to disclose property conditions relates to a seller’s obligations under the law. For example: the seller of a property filled out the Disclosure Statement on the Maryland Residential Property Disclosure/Disclaimer form. A contract was accepted, contingent on the buyer’s home inspection. After receiving the home inspection report, the buyer submitted a list of 70 items for “Corrective Action” by the seller. The seller agreed to make some, but not all repairs. In response, the buyer rescinded the contract.

The seller now has knowledge of several conditions of which he was unaware before he received the report, as am I. Does this alter legal responsibilities for either of us?

A. The short answer is: almost certainly, yes.

Your situation crystallizes a common question we hear on the MAR Legal Hotline. You are right to distinguish a seller’s legal obligations from yours as a real estate licensee, because they are substantively different. The seller of residential property is required to provide to a buyer a completed Disclosure or Disclaimer Statement. If the seller completes the Disclosure Statement, it must be accurate, with no items left blank. If the seller completes the Disclaimer Statement, the seller is making no representations as to the condition of the property. Whether the seller discloses or disclaims, the seller is required to disclose latent defects of which the seller has actual knowledge. A latent defect is a condition that could cause harm to an occupant of the property and that could not be discovered by careful visual inspection of the property.

If the seller chooses disclosure, and a subsequent home inspection exposes new conditions that would result in changes to the answers the seller provided on the Disclosure Statement, the seller must complete a new form and make that available to subsequent prospective buyers. Similarly, if the seller learns of latent defects of which he was previously unaware, the seller must disclose them, whether he disclosed or disclaimed.

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From the HotlineCharles A. Kasky, Esquire

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