December 2011/January 2012

p 10 Economic Forecast An Action Packed 2012

p 15 REaltoR® Family Designation Programs

W E ’ R E

GOINGT O N E E D A B I G G E R

BOAT p 7

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

Consumer Website:WWW.MARYlANDHoMEoWNERsHIP.CoM

VolUME XlV Number 7 DECEMBER 2011 / JANUARY 2012

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550+Over 550+ Websites

3M A R Y L A N D R E A L T O R ® December 2011/January 2012

REALTORS® ARE GOING TO NEED A BIGGER BOATMAR lobbyists and local government affairs directors will be

will be intensely focused on challenges from state and

governments this year. See page 7 for a summary of the most

important issues.

RPR—A NEW FREE BENEFITReal Property Resource (RPR), a significant FREE benefit to

REALTORS®, is now available to Maryland REALTORS®. See

page 22 for information about the extraordinary tools

available to you to serve clients and customers.

From the MAR Leadership Team and Staff, our warmest

wishes for a Happy, Healthy and Prosperous New Year.

The tough economy makes it hard for many of us to invest

in RPAC. But this is exactly when our support is most

essential. Tight budgets mean local, state and federal

governments are on a search for more sources of revenue,

and despite housing’s many challenges, our industry and

our profession remain a tempting target. Now more than

ever, we need a strong PAC. Our fair share is only $15—a

small but essential investment in our profession. It’s up to

each of us to protect our livelihood. To contribute go to

www.mdrealtor.org, Top Destinations, and click on RPAC

Online Contribution.

DESIGNATIONS ARE BECOMING A ‘MUST’ FOR REALTOR® EDUCATIONMore than ever, we must demonstrate our value and

expertise to clients. Designations and Certifications help

set you apart and showcase your professionalism. See pages

15-18.

President’s PerspectivePatricia Terrill

RPaC – WHY NoW?

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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.

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To make it even easier for you to respond and significantly increase our Calls for Action responses, simply download the NAR REALTOR®

Action Center App to your smartphone. Go to www.mdrealtor.org for details, or scan the QR Code for the MAR website.

4 M A R Y L A N D R E A L T O R ® December 2011/January 2012

November 2011

table of contents

F E A T U R E s 7 lEGIslATIVE PREVIEW We’re GOING to need a bigger BOAT

10 ECoNoMIC FoRECAsT U.S. Economy No Longer Deteriorating

15 REAlToR® Family Designation Programs

19 FREE Webinar Thursday series

22 REAlToRs PRoPERTY REsoURCE, llC Launches Broker Tool Sets

D E P A R T M E N T s

3 PREsIDENT’s PERsPECTIVE

5 2012 MAR lEADERsHIP TEAM

20 2012 GRI sCHEDUlE

24 MARYlAND REAl EsTATE CoMMIssIoN NEWs Paperless Licensing Announced

26 REGUlATIoN NEWs Commission Wins Big in Maryland High Court

28 sNIPPETs

30 MRIs UPDATE Top 11 Core Enhancements of 2011

33 CoMMERCIAl CoNNECTIoN Commercial Lending and “Skin in the Game”

34 FRoM THE HoTlINE Recent Maryland Cases Create Uncertainty

35 REsIDENTIAl sAlEs Housing Market Indicators Slump Again in October

10

7

15AD

22

REALTOR® Family Designation

Programs


2012 Maryland Association of REAlToRs® leadership Team

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 PenFed Realty7500 Coastal HighwayOcean City, MD 21842-2937800.638.3242Fax [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 Pioneer Realty Inc.One Research Blvd., Suite 450Rockville, MD 20854Cell 301.648.1282 Fax 301.907.6610 [email protected]

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7M A R Y L A N D R E A L T O R ® December 2011/January 2012 7M A R Y L A N D R E A L T O R ® December 2011/January 2012

2012 Legislative PreviewWilliam Castelli

One of the most memorable scenes from “Jaws” occurs when Police

Chief Brody sees the giant shark for the first time. His face turns pale

and his cigarette dangles precariously from his lip as he backs up slowly

into the boat’s cabin and says to the captain, “You’re going to need a

bigger boat.”

REALTOR® lobbyists looking at the many policy challenges facing real

estate in 2012 feel we, too, need a “bigger boat.” At the federal level,

Congress is debating changes to the Mortgage Interest Deduction and

whether to continue support for a government role in secondary

mortgage market, while federal agencies are considering mandatory

down payment requirements and implementing difficult condo and

HOA rules. Any one of these challenges alone would be significant.

Together they are frightening.

But it doesn’t end there. At the state level, Maryland is considering

issues of growth control, real estate fees, lead paint, septic systems, and

foreclosures. The challenges circling the industry are many and exist

at all levels of government.

While your REALTOR® associations will be fighting hard to address all

of these issues, MAR will be focused intensely on the state legislative

challenges facing our industry. The following is a description of some

of the top issues we will be working on in the coming year.

Sustainable Growth and Septic SystemsLast year, MAR along with other groups vigorously opposed legislation

that would have prohibited septic systems in new major subdivisions.

That legislation was never voted on. Instead, the Governor agreed to

form the “The Task Force on Sustainable Growth and Wastewater

Disposal.” That group met regularly during the summer and fall and

will finalize its recommendations in November and December. Among

the many recommendations that may result are further restrictions

and/or requirements for new and existing septic systems, means-testing

for septic grants, and increased fees paid into the Bay Restoration Fund

to help pay for wastewater treatment plant upgrades and septic grants.

MAR continues to oppose the prohibition of septic systems in new

subdivisions because of its harmful impact on growth and housing

affordability.

PlanMarylandWhile the Task Force on Sustainable Growth will have clear growth

impacts, the State of Maryland -- through the Department of Planning

-- is expected to announce new development rules for counties to meet

in order to receive state funding. Although PlanMaryland is intended

to redirect growth, MAR is concerned that its effect will be to stop

growth in many areas. We have submitted formal comments advocating

that local planning decisions remain with local governments rather

than the state. Although many of PlanMaryland’s goals do not require

legislation to be enacted, bills addressing PlanMaryland elements will

likely be introduced this winter.

W E ’ R E GOING T O N E E D A B I G G E R BOAT


2011 legislative outlook Continued from page 7

passed by the General Assembly, as it gave everyone involved in real

estate sales clear information regarding the ownership status of the

property. Proper titling and disclosure require some kind of mandatory

registration, and MAR will be seeking a solution.

Transfer Taxes on Foreclosed PropertiesAs if real estate owned (REO) property wasn’t hard enough to sell, the

government sponsored entities (GSEs) have taken the position that as

quasi-governmental entities, they cannot be taxed when selling their

foreclosed property. County governments deal with this problem in

different ways. Some counties require the buyer of the GSE property

to pay ALL of the transfer tax and recordation fees. Other counties

require the buyer to pay only half of those charges and forgive the rest.

MAR and the land title industry in Maryland will be seeking legislation

to require one rule: that buyers only pay half of these taxes rather than

picking up the seller’s half as well. While state government may not

be in a position to give incentives to foreclosure purchases, surely the

government can at least remove some of the barriers to moving these

properties.

With all of the policy challenges facing real estate, it is time for us to

search for the “bigger boat.” MAR’s President Pat Terrill has challenged

Maryland REALTORS® to become more politically engaged and, as part

of that, to respond in greater numbers to legislative calls-for-action

(CFAs). Currently, about 14% of Maryland REALTORS® participate in

CFAs. CFAs take little time to respond to, but they pay back big

dividends when legislators hear from voting constituents. And all of

our CFAs direct REALTORS® to their own elected officials.

REALTORS® can have success on many of the current policy challenges

facing us, but only if we build the “bigger boat,” and that starts with

something as simple as picking up the phone or sending an email. Help

us represent your interests.

William Castelli, Esquire, Vice President, legislative AffairsMaryland Association of REAlToRs®

TaxesFirst the good news: revenues picked up this past year, giving the state

some unanticipated funds. Now the bad news: the additional revenue

only reduces the fiscal hole for the coming year (to $750 million).

While the federal government helped bail out the state in prior years,

that well is now dry. Over the summer, legislators had briefings

regarding the expansion of the state sales tax to certain services (real

estate was not mentioned) as well as the issue of taxing internet sales.

MAR expects a sales tax expansion bill to be introduced in the coming

session. It is also clear that the Legislature will consider an increase

in the gasoline tax.

Lead PaintThis summer, a great deal of time was spent deciding whether Maryland

should place new lead paint requirements on home sellers. Among the

ideas discussed are mandatory lead dust tests of all pre-1978 properties,

and mandating that an elevated blood lead level is recorded with the

property records.

In addition to the work of this group, the Maryland Court of Appeals

overthrew a portion of the current Maryland lead paint program for

rental properties (see this month’s Legal Hotline article). Although the

Court permitted the registration part of the law to stand, it ruled that

the liability cap for property owners violated the Maryland Declaration

of Rights. Now property owners and property managers who have

spent hundreds of millions of dollars in the last 15 years to make

properties safe, face unlimited liability if a child registers a high blood

lead level while in their property. MAR and a number of groups will

be working with the Legislature this winter to address this

unsustainable liability.

Ground RentsThe Court of Appeals poked the General Assembly in the eye again,

ruling another one of their legislative enactments unconstitutional.

This time the Court found that the law abolishing a ground rent that

was not registered with the state an unconstitutional taking of property

(see this month’s Legal Hotline article). As a result, there is now no

penalty for failing to register a ground rent. The Ground Rent registry

was one of the most important provisions of the ground rent reform



For the most part, 2011 has been

a disappointment. Coming into the

year, the economy was reasonably

flush with momentum. Nationally, the

economy expanded 3.0 percent over

last year, and financial markets rallied

toward the end of the year. But high energy, food

and other commodity prices, as well as the March

earthquake in Japan had undermined much of the

momentum and confidence that had accumulated late last

year. The first half of 2011 was essentially a dud.

It Should be an Action-Packed 2012:2 Stars ★★

Economic ForecastAnirban Basu

At LeAst for NowAt LeAst for Now

U.S. EconomyNo LoNger

DeterioratiNg . . .

11M A R Y L A N D R E A L T O R ® December 2011/January 2012 11

However, recent economic news has been more positive, with respect to

gross domestic product, business investment and exports. If the U.S.

economy continues to progress, this will eventually translate into more

vigorous recovery for the state’s housing market, at least if mortgage rates

remain well behaved.

It could be worse. Until recently, it seemed that the nation was doomed

for another downturn. During the first quarter, Gross Domestic Product

(GDP) expanded at a meager 0.4 percent, followed by 1.3 percent growth

in the second quarter. Job growth during the first half of the year was also

unimpressive and far too weak to trim unemployment rates. The nation’s

official unemployment rate remained stuck at 9.1 percent for several

months before ticking lower to 9.0 percent in October.

Financial markets began to surge in October and consumers continue to

spend at surprisingly lofty levels despite extraordinarily weak income

growth. The Bureau of Economic Analysis reported in its initial estimate

that the economy expanded at a 2.5 percent annualized rate during the

third quarter. That is nearly three times the pace of economic expansion

registered during the first six months of the year (0.9 percent on an

annualized basis).

But the 2012 outlook remains unusually blurry in this country, and for the

developed world. Despite recent progress in Europe regarding the

sovereign debt crisis related to Greece avoiding a referendum on a new

bailout package, investors and others will continue to be vulnerable to

headline risk – the risk that negative news coverage and uncertainty will

cause a significant change in the value of an investment. The Italian and

Spanish debt levels are also responsible for fueling persistent uncertainty

and risk in the markets.

The situation in the U.S. is also somewhat precarious from a public policy

perspective, including at state and local levels, where many governments

continue to wrestle with a host of fiscal challenges. As of this writing, the

so-called Super Committee has announced it failed in its task of trimming

federal spending by $1.2 trillion over the next ten years. The various

impasses in Washington represent another source of uncertainty for

prospective buyers, lenders and other stakeholders in the state’s residential

real estate market.

Through it all, job growth has remained positive. Unfortunately, the soft

patch that infected the economy early in the year has had the effect of

reducing the pace of employment expansion. Between February and April

of 2011, the nation was averaging more than 200,000 net new jobs per

month based upon Bureau of Labor

Statistics data. But by October, the

pace of job growth had slowed

dramatically, to just 80,000. Job

growth is unlikely to pick up

significantly over the next several

months given a relative lack of small

business confidence and the fact

that many firms decided to slow

hiring during the lull in economic

activity earlier in 2011. Many state

and local governments across the

nation also continue to downsize in

their effort to balance annual budgets

without raising taxes substantially, if

at all.

Exhibit 1. Change in Real Gross Domestic Product, Q3 2005 through Q3 2011

Source: Bureau of Economic Analysis


Economic Forecast Continued from page 11

Job growth may pick up at some point in 2012, however, helping to spur

more confidence and more real estate activity. There are a number of

industries and segments that continue to drive growth, including energy/

power, healthcare, consumer spending, exports and food. With the

possible exception of consumer spending, each of these segments is poised

for ongoing progress during the year ahead.

Maryland: Arguably Even More DisappointingThis was supposed to be a fine year for job creation in Maryland. With the

nation adding jobs and with base realignment finally implemented in full,

many economists in Maryland thought that the Free State could add

25,000-30,000 jobs this year. But with the U.S. economy’s performance

disappointing, with base realignment-related multiplier effects being more

subdued than initially projected, and with federal agency heads hoarding

cash due to lingering budgetary uncertainty, the Free State has failed to add

nearly as many jobs as anticipated.

One of the reasons that base realignment hasn’t had its anticipated impact

thus far is that many of those whose jobs were relocated to Maryland

remain at least partially attached to places like New Jersey and Northern

Virginia. When base realignment recommendations were initially

promulgated and subsequently adopted, surveys indicated that many of

those whose jobs had been relocated would surrender those jobs in favor of

other opportunities closer to home. But with the economy deteriorating

significantly since the mid-2000s, many of those who expected to stay in

New Jersey or Northern Virginia held on to their jobs. As a result, the

affect on rental markets has arguably been greater than anticipated, but the

impact on owner-occupancy in Maryland has been somewhat less. As time

passes and more of these jobholders either retire or make the commitment

to Maryland, the expected impacts of base realignment will materialize.

But for now, the effect has been

partially muted.

According to the Bureau of Labor

Statistics, the state has added jobs at

less than half the national rate over

the past twelve months for which data

are available. Take away job growth in

professional and business services,

much of which took place in terms of

job growth is in the temporary help

category, and given that, the actual job

growth in the state would actually be

negative.

While some may attribute this lack of

job creation to the state’s business

climate, which has sometimes been described as challenging, there are

clearly other issues. For instance, job growth in Virginia has also decelerated

in recent months even though the Commonwealth is widely regarded as

sustaining one of the nation’s most competitive business climates.

Unemployment in Maryland has generally been increasing. Even

Montgomery and Howard counties now suffer unemployment rates that

have been edging toward 6 percent. As of this writing, the state’s

unemployment rate stands at 7.4 percent, the highpoint for the year. The

Eastern Shore dominates the list of jurisdictions suffering the state’s

highest rates of unemployment, though the single-highest unemployment

rate is attached to Baltimore City.

Job growth in both the Baltimore and Washington metropolitan areas has

slowed over the past year. This is particularly true in the Washington

area, which is more vulnerable to federal budgetary gyrations than even

government-rich Baltimore.

Exhibit 2. U.S. Nonfarm Employment Growth (12-month Absolute Change), October 2010 v. October 2011

Source: Bureau of Labor Statistics

Looking AheadOur outlook has improved marginally over the past three months.

There was an underlying momentum in the U.S. economy that

existed coming into 2011, which was buried by a tidal wave of bad

news and rising input prices earlier this year. The ongoing malaise

of the housing market has not helped. But for now, the economic

momentum seen in the first part of

2011 is becoming apparent again,

with economic growth during the

second half of 2011 poised to be

more than twice as fast as the first.

Much will depend upon the

consumer’s willingness to continue

spending. The U.S. savings rate

now stands at 3.6 percent, its

lowest level since December 2007,

the first month of the recession.

We are concerned that consumers

are presently overspending their

capacity, with spending growth

exceeding the pace of personal

income growth virtually each

month. That could result in

another soft patch in economic

activity early next year.

Our outlook for Maryland has also

improved somewhat. Data from

the summer were skewed by the

nation’s debt ceiling debacle, which

slowed the flow of federal funds

through the local economy. With

that in the rear-view mirror,

economic activity appears to have

been stabilizing of late.

Unfortunately, more drama is likely in Washington, D.C. This is

particularly true as the stakes get higher as we approach November

2012. Consequently, next year could be another roller coaster ride

for the Maryland economy and by implication for the housing

market.

Exhibit 3. Unemployment Rates by Maryland Jurisdiction, NSA, September 2011

Source: Bureau of Labor Statistics

Rank Jurisdiction Rate Rank Jurisdiction Rate

1 Howard County 5.4 12 Talbot County 7.3

2 Montgomery County 5.5 14 Kent County 7.4

3 Calvert County 6.0 15 Baltimore County 7.8

3 Charles County 6.0 16 Cecil County 8.2

5 Saint Mary's County 6.1 17 Allegany County 8.4

6 Carroll County 6.2 18 Wicomico County 8.5

6 Frederick County 6.2 19 Caroline County 8.8

8 Queen Anne’s County 6.4 19 Worcester County 8.8

8 Garrett County 6.4 21 Somerset County 9.0

10 Anne Arundel County 6.6 22 Washington County 9.6

11 Harford County 7.1 23 Dorchester County 10.0

12 Prince George's County 7.3 24 Baltimore City 10.4

Exhibit 4. Maryland Jurisdiction Months of Inventory, October 2010 - October 2011

Source: Maryland Association of Realtors (MAR), Sage; based on October sales volumes

JurisdictionMonths of Inventory

JurisdictionMonths of Inventory

2010 2011 2010 2011

Montgomery 5.3 5.1 Baltimore City 15.6 13.1

Frederick 8.2 6.1 Queen Anne's 19.9 15.0

Prince George's 8.5 6.3 Wicomico 16.4 16.4

Howard 6.8 6.7 Dorchester 18.9 17.1

Charles 8.5 6.8 Allegany 12.4 19.4

Baltimore County 12.1 8.5 Cecil 16.2 19.5

Anne Arundel 9.8 8.8 Talbot 29.0 22.0

Washington 12.8 9.2 Kent 31.0 22.4

Harford 9.2 10.2 Worcester 20.1 22.5

Carroll 11.5 10.3 Garrett 21.5 22.8

St. Mary's 9.2 11.5 Caroline 17.1 25.4

Calvert 16.6 12.2 Somerset 15.3 26.0


Indeed, we expect that Maryland’s housing market will continue to

struggle for the most part next year. Though Montgomery and

Howard counties have now reached supply-demand equilibrium or

are at least on the verge of doing so, much of the state remains

associated with eight months of housing supply or more. Median

and average sales prices continue to decline, including in October,

the last month for which data are available. The four jurisdictions

suffering the largest declines in median sales prices over the past

year are all on the Eastern Shore. However, prices continue to

slide in many of the state’s larger jurisdictions, including in

Baltimore City, Baltimore County, Anne Arundel County and

Prince George’s County.

That said, there are indications of progress. Pending sales

statewide totaled 5,441 in October 2011, up from 4,506 one

year earlier. This represents an increase in pending sales of 21

percent. The active inventory of unsold homes has fallen from

40,302 to 34,277 over the past year, a decline of almost

precisely 15 percent.

For the pace of recovery to accelerate, a few things must occur.

First, job growth must accelerate significantly. This will help

support both the first-time and move-up buyer markets. Second,

asset prices must continue to rise, including equity prices. Better

stock market performance would both boost confidence among

prospective buyers and would also create greater resources available

for down payments. Finally, lending conditions and appraised

values must stabilize to enable a larger share of prospective buyers

to qualify for mortgages.

Foreclosures may continue to be a major headwind for the housing

market, impacting both sales prices and confidence. However, even

along this dimension there has been good news. In Maryland, just

one in every 1,954 housing units received a foreclosure filing in

October, for a total of 1,198 units. The national figure for October

was one in every 563, according to RealtyTrac. If the pace of foreclosures

continues to soften, price stability or better may ensue more quickly than

presently anticipated, stimulating a sense of urgency among buyers that

hasn’t been apparent for at least four years.

Anirban Basu, sage Policy Group, Inc.

Economic Forecast Continued from page 13


Exhibit 5. Median Housing Prices, by Jurisdiction, October, 2011 and 2010

Jurisdiction 2011 2010 % Chg.

1 Kent $204,500 $169,000 21.0%

2 Washington $168,000 $145,000 15.9%

3 Somerset $100,100 $88,750 12.8%

4 Wicomico $145,000 $133,500 8.6%

5 Allegany $95,900 $90,500 6.0%

6 Queen Anne's $269,000 $259,000 3.9%

7 Calvert $255,000 $249,950 2.0%

8 Frederick $252,500 $250,000 1.0%

9 Carroll $241,925 $240,000 0.8%

10 Caroline $144,500 $146,000 -1.0%

11 Harford $225,000 $237,500 -5.3%

12 Baltimore City $83,000 $88,500 -6.2%

13 Montgomery $327,250 $350,000 -6.5%

14 Howard $330,750 $354,500 -6.7%

15 St. Mary's $280,210 $302,450 -7.4%

16 Baltimore Co. $195,000 $212,000 -8.0%

17 Charles $210,000 $228,475 -8.1%

18 Anne Arundel $275,000 $299,900 -8.3%

19 Garrett $263,000 $330,000 -20.3%

20 Pr. George's $150,000 $190,000 -21.1%

21 Cecil $169,900 $216,500 -21.5%

22 Worcester $205,000 $270,000 -24.1%

23 Talbot $222,450 $322,095 -30.9%

24 Dorchester $74,094 $164,950 -55.1%Source: Maryland Association of Realtors (MAR), Sage; based on October sales volumes


ABR – Accredited Buyer Representative

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Acquire valuable skills through educational offerings

leading to the ALC designation.

REALTORS® Land Institute (RLI)For information visit www.rliland.com

CCIM – Certified Commercial Investment Member®

CCIMs are recognized experts in commercial real

estate brokerage, leasing, valuation, and investment

analysis. The CCIM business network includes more

than 7,500 designees and an equal number of

candidates principally in North America, but also in

Asia and Europe. CCIMs are backed by a respected education program, as

well as superior technology products and business resources.

CCIM InstituteVisit www.ccim.com

REALTOR® Family Designation Programs

Designation Programs

Workforce Housing DesignationThis certification program offers training to members who want to learn more about financing

options for first-time homebuyers and critical workforce employees (police, firefighters,

teachers, medical staff) as well as programs targeted for special populations, such as disabled

persons and aging citizens. Currently, this designation is for Maryland REALTORS® only and

not a NAR designation.

The National Association of REALTORS® has affiliated Institutes, Societies, and Councils that provide a wide-ranging menu of programs and services

that assist members in increasing skills, productivity and knowledge. Designations acknowledging experience and expertise in various real estate sectors

are awarded by each affiliated group upon completion of required courses. In addition, NAR offers two certification programs to its members.


CIPS – Certified International Property Specialist

The CIPS network is comprised of 1,500 real

estate professionals from 50 countries who

deal in all types of real estate, but with one

common element: they are focused

specifically on the “international” market.

Whether traveling abroad to put deals together, assisting foreign investors,

helping local buyers invest abroad, or serving an immigrant niche in local

markets, CIPS designees are consumers’ best resource to ensure they are

dealing with a professional skilled in the unique aspects of international

real estate.

National Association of REALTORS®

Visit www.realtor.org/cipshome.nsf/pages/education

CPM – Certified Property Manager®

Acquire valuable real estate management skills through

educational offerings leading to the CPM® designation.

CPM® members have the competitive edge in every area

of real estate management from residential to

commercial to industrial.

Institute of Real Estate Management (IREM)Visit www.irem.org

CRB – Certified Real Estate Brokerage Manager

The Certified Real Estate Brokerage Manager (CRB)

designation is recognized industry-wide as the

measure of success in brokerage and real estate

business management. The designation is awarded by

the Council of Real Estate Brokerage Managers to

REALTORS® who have completed the Council’s

advanced educational and professional requirements.

CRB designees consistently increase their level of industry knowledge,

advance their earning and career potential, increase their firm’s

profitability and benefit from active involvement in our network of real

estate professionals. The new CRB Designation Program now provides

credit for management experience, higher education and previously

earned NAR designations. Additional credits can be earned through the

Council’s management education programs delivered live or by Self Study

on CD-ROM.

Council of Real Estate Brokerage ManagersFor more information visit www.crb.com

CRS® – Certified Residential Specialist®

Agents can maximize their potential by earning the

CRS® designation and joining the organization that

has served top-producing residential sales agents since

1977. The more than 35,000 CRS® designees benefit

from nationwide referral opportunities, a professional

image that attracts customers, and sales and marketing support. The CRS®

designation is awarded to experienced REALTORS® who complete

advanced training in listing and selling, and meet rigorous production

requirements.

Council of Residential SpecialistsVisit www.crs.com

CRE – Counselor of Real Estate

The Counselor of Real Estate — or CRE — is a

member of The Counselors of Real Estate, an

international group of recognized professionals

who provide seasoned, objective advice on real

property and land-related matters. Only 1,100 practitioners throughout

the world carry the CRE designation. Membership is by invitation only.

Counselors of Real EstateVisit www.cre.org

GAA – General Accredited Appraiser

Certified general appraisers wishing to

increase their visibility should consider

pursuing the GAA designation. The GAA

designation is awarded to appraisers

whose education and experience exceed

state appraisal certification requirements

and is supported by the National

Association of REALTORS®.

National Association of REALTORS® Visit www.realtor.org/appraisal/appraisal/designationinformation

Designation Programs Continued from page 15


GREEN – NAR’s Green Designation

The Green REsource Council serves real

estate professionals by providing

comprehensive training and access to

cutting-edge resources and tools as well as

promoting green excellence, leadership, and

consumer awareness within and across

multiple real estate disciplines. Practitioners who complete the 3-day

program are awarded NAR’s Green Designation, the only green training

program recognized by the NAR.

The Green REsource CouncilFor information visit www.GreenREsourceCouncil.org

GRI – Graduate REALTOR® Institute

Members involved in residential real estate

who want a solid base of information for

their practice will want to participate in the

REALTOR® Institute program and earn the

GRI designation.


NAR maintains a clearinghouse of information for individuals interested in the GRI program. For more information, contact

MAR at 800.638.6425 or visit www.mdrealtor.org

PMN – Performance Management Network

The Performance Manage-

ment Network (PMN) is a

new REALTOR® designation

that’s built from the ground up to bring you the real-world skills, the

know-how and the tools that will keep your business out front and on top

of a lightning-fast market. This designation is unique to the REALTOR®

family designations, focusing on the idea that in order to enhance your

business, you must enhance yourself. The curriculum is driven by the

following topics: negotiating strategies and tactics, networking and refer-

rals, business planning and systems, personal performance management

and cultural differences in buying and selling.

Women’s Council of REALTORS®

Visit www.wcr.org

RCE – REALTOR® Association Certified Executive

Association executives interested in

demonstrating commitment to the field of

REALTOR® association management should

pursue the RCE designation. AEs are

recognized for their specialized industry

knowledge and their association achievements and experience.


More information can be found at www.realtor.org/RCEonline.nsf/pages/rcehomepg

RAA – Residential Accredited Appraiser

Certified residential appraisers wishing to

increase their visibility should consider

pursuing the RAA designation. The RAA

designation is awarded to appraisers whose

education and experience exceed state

appraisal certification requirements and is

supported by the National Association of REALTORS®.


Visit www.realtor.org/appraisal/appraisal/designationinformation

SRES® – Seniors Real Estate Specialist

The SRES® Designation program educates

REALTORS® to profitably and ethically serve

the real estate needs of the fastest growing

market in real estate, clients age 50+. By

earning the SRES designation you gain access

to valuable member benefits, useful resources,

and networking opportunities across North America and Canada to help

you in your business.

Seniors Real Estate Specialist CouncilFor information visit www.seniorsrealestate.com



SIOR – Society of Industrial and Office REALTORS®

Individuals certified with the SIOR

designation are top producers in

industrial and office real estate

brokerage. SIOR’s network includes

more than 2,800 members in 480 cities in 20 countries on six continents.

The Society’s mandatory recertification requirement assures clients of the

designee’s excellence in the fast changing commercial brokerage field.

Society of Industrial and Office REALTORS®

Visit www.sior.com

NAR Family Certifications

AHWD® – At Home with Diversity

A ground-breaking professional education

initiative designed to provide America’s real

estate professionals with training and tools to

expand their business as well as homeownership

opportunities for more Americans.

AHWD certification relays to the public that those certified have been

professionally trained in and are sensitive to a wide range of cultural issues

inviting a wider volume of business from a greater variety of cultures.

For more information on this course and its business principles, please visit www.realtor.org/divweb.nsf

BPOR – Broker Price Opinion Resource

With the changing real estate landscape and the increased use of broker price opinions (BPOs) by market participants, the BPOR

certification provides REALTORS® with knowledge and skills to reduce

risk, increase opportunities and create professional BPOs.

For information call 855-640-8863 or visit www.bpor.org

e-PRO®

The new e-PRO certification provides a

roadmap to help you serve hyper-connected

consumers of today and tomorrow. Course

topics for Day 1 include the changing

market, how to connect with consumers,

the online conversation, and reputation

management. Day 2 provides hands-on discovery of business tech tools,

such as an e-strategy, mobile office, micro-blogging, rich media, and NAR

resources.

Presented by REBAC (Real Estate Buyer’s Agent Council)Contact e-PRO® at [email protected], 877/397-3132 or

http://rebac.net/e-pro.cfm

RSPS - Resort & Second-Home Markets Certification

The RSPS is a certification offered by NAR

Resort for resort & second-home REALTORS®

around the world. REALTORS® specializing in

resort and second-home markets and interested

in demonstrating their knowledge and

expertise should pursue the RSPS certification. The RSPS core certification

requirements include the NAR Resort & Second-Home Market Course

and the RLI Tax-Deferred (1031) Exchange Course. RSPS applicants will

also choose from nine different elective choices including courses from

the NAR Education Matrix and the NAR Resort Symposium held every

18 months.

For more information, visit www.realtor.org/resort

SFR - Short Sales and Forclosures Resource

REALTORS® with the SFR certification can

be a trusted resource for short sales and

foreclosures. Your ability to close short

sales and foreclosures depends in part on

your confidence in seeing these transactions

through. Begin building your confidence

today with SFR!


For information visit www.realtorSFR.org



Matthew Ferrara

Chris Bird

Pat Hiban

Legal Team Chuck Kasky/Colette Massengale

Greg Herder— Hobbs Herder

Aaron Rice

Tom Ferry

Steve Harney

Social Media Super TipsNovember 4, 2011, 10 a.m.

Taxes—Becoming an LLC, Sole ProprietorJanuary 12, 2012, 10 a.m.

6 Steps to 7 FiguresMarch 1, 2012, 10 a.m.

Solving the Mysteries of the MAR ContractMay 3, 2012, 10 a.m.

Getting Your Listings to Sell in Any MarketDecember 15, 2011, 10 a.m.

Navigating Short Sales SuccessfullyFebruary 2, 2012, 10 a.m.

Agent Survival/Building Your Business Through Lead GenerationMarch 8, 2012, 10 a.m.

Keeping Current MattersJune 7, 2012, 10 a.m.

P A S T W E B I N A R

USABLE STRATEGIES that will increase your confidence and immediately help you. Join us for our 2012 FREE Webinar Series designed for REALTORS® in every stage of the profession.

We will send a sequence of reminders to register. If you’re not receiving them, and don’t want to miss these valuable FREE Webinars, let us know at [email protected].

FREE Webinar Thursday Series


3GRI 2012 Schedule

SERIES 100Prince George’s Association301-306-7900March 3, 9, 15, 19 & 21, 2012

SERIES 200MAR, Annapolis800-638-6425February 21, 28 March 6, 13 & 20, 2012

Pen-Mar Regional Association(Register through Hagerstown Community College)301-790-2800 ex.520April 12, 19, 26 May 3 & 10, 2012

Prince George’s Association301-306-7900June 6, 8, 14, 18 & 21, 2012

Greater Baltimore Board410-337-7200August 2, 9, 16, 23 & 30, 2012

SERIES 300Greater Baltimore Board410-337-7200February 2, 9, 16, 23 March 1, 2012

Southern Maryland Association301-870-2323February 17, 24 March 2, 9, & 16, 2012

Prince George’s Association301-306-7900October 3, 10, 15, 18 & 24, 2012

SERIES 400MAR, Annapolis800-638-6425May 1, 8, 15, 22 & 29, 2012

Greater Baltimore Board410-337-7200October 2, 9, 16, 23 & 30, 2012

Please visit the MAR website, www.mdrealtor.org for the most current course schedules.

3GREAT THINGS come in

Increase Income PotentialREALTORS® with designations earn more income than thosewithout designations. The GRI is a way to set you apart fromthe competition. Broker’s License RequirementThe full GRI classroom series (100, 200, 300, and 400) fulfills the educational requirements needed to take the Maryland broker’s exam (MAR coursework is specific for Maryland). The Name Says it AllAs a GRI (Graduate, REALTOR® Institute), you have accomplished a high level of achievement which indicates to your clients and colleagues an increased skill level, industry knowledge and dedication to your profession.

321

Earn the GRI:

s


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5215-BALT Maryland Realtor Ad.indd 1 12/2/11 5:00 PM

AD

On October 19, 2011 RPR launched an array of high value tools

created specifically to support real estate firms and meet the

unique needs of broker and managers. The Broker(s) Tool Sets

(BTS) leverage RPR’s database of property information and

report capabilities, helping brokers provide valuable services to

their agents which work in tandem with broker’s existing

technologies and promote their branding.

Realtors Property Resource, LLC

Launches BrokerTool Sets



The BTS contains four distinct elements, two of which, Company

Branding and Affiliated Service Modules appear to the agents on the

RPR website and reports, while other elements such as the Chart

Service and Data Tool are for Brokers, managers and authorized staff

access only. The Broker Tool Sets include the following components:

Company Branding: Allows brokers to add their company

logo via the RPR website and RPR Branded Reports.

Affiliated Service Modules: Service Modules are

promotional widgets that highlight a company’s business services to its

agents via the RPR website and RPR Branded Reports. Each service

module can include a logo, contact information for the servicing agent

and a brief description. Service modules include:

• Mortgage: This module allows you, at your option, to

display current and historical mortgage rates and provide links

to get more information. A custom portal controls a mortgage

rate upload tool, so you can load the appropriate information.

• Title, Home Warranty, Insurance and Concierge

Chart Service: The Chart Service allows your company to

display select chart imagery from RPR direct on your own web pages

and reports, or internal company marketing resources. An easy to use

token allows manipulation of the chart results based upon twelve

select criteria and defined geographies by zip code.

Data Tool: Analyze and visualize RPR data using a reporting and

querying tool designed specifically and exclusively for company staff

and managers. Download market trends in a variety of segments, and

evaluate company and office performance against market performance.

RPR Data Tool allows custom defined geographies which will cross

MLS boundaries and give companies a view of the entire market area.

RPR also has a dynamic de-duplication tool which allows a high level

of statistical accuracy for those companies where properties are listed

in multiple MLSs.

To Register your company or to contact the RPR Broker Services Team

for more information go to blog.narrpr.com/broker

Jeff Young, senior Vice-President of operationsRealtors Property Resource, llC

• Live manager specific training classescovering areas of RPR such as an overview of how RPR can create value for your agents and companies, an explanation of the Broker Tool Sets, and dedicated classes to help you utilize manager-only tools such as the RPR Chart Service and Data Tool. They also offer archived videos of each class for download and viewing at your convenience.

• Pre-designed communications pieces topromote your company’s registration and involvement with RPR Broker Tool Sets, specific RPR features which can enhance

your agents’ efficiency, training opportunities for agents, and valuable tips to save time and money.

• Sales Meeting Modules allow brokers andmanagers to utilize the Resource Center for a week-by-week pre-recorded video and supporting print material for use in company sales meetings. Short but incisive videos will help you guide your agents on how to gain market advantage by using RPR advanced features such as search, reporting, mapping, valuation tools and more.

RPR has also created a set of broker resources which can be accessed through its new re-designed blog at blog.narrpr.com/broker

The Broker/Manager resource Center offers three specific areas of support:



In an effort to improve service and conserve operating funds, the Maryland

Real Estate Commission is pleased to announce that the electronic license

renewal process will now culminate with license certificates and pocket

cards that can be downloaded by a broker on his computer. We will be fine

tuning this in the very near future so that branch office managers may

receive the notification from the Commission. In the interim, the broker

can save the licenses and email them to branch office managers.

Effective December 1, the Commission will no longer issue and mail paper

licenses to individuals. Brokers will be sent an email stating that a licensee

with that broker has applied, renewed, upgraded or amended his or her real

estate license. The email will inform the broker that the new license is

ready to be printed, and direct the broker to a secure website for access to the

digital license.

As brokers will be the point of contact for distribution of the real estate

licenses, it is very important that they ensure that the Commission has a

current email address for sending notifications. The Commission has been

notified that several brokers declared our email notice to them as spam and

“Opted Out.” We request that these brokers reverse this action as there will

be no other form of notification other than email .

To update an email address on file with the Commission, go to

www.dllr.state.md.us and click on “Occupational and Professional

Licensing” which appears on the left side of the webpage. Then click on

“Real Estate Commission” on the right side of the page. At the top of

the Real Estate Commission page, select “industry” and then find the

“update personal information” button. Use your existing login ID and

Paperless Licensing Announced

password to update your email address. PLEASE remember to keep this

updated regularly.

Once the Commission has a current email address, the brokers will receive

an email notice advising that a license is ready to be downloaded. The broker

will be able to print the new license and pocket card, provide a paper license

to the licensee and save a digital copy for safekeeping. We suggest saving a

copy of the license by expiration date, either in paper or digital form, to track

when licensees affiliated with the brokerage are due for renewal.

Each new license will be available to download from the Commission’s

website for 60 days. Thereafter, if a duplicate license from the Commission

is needed, a request to us by email will be sufficient at [email protected]

We very much hope that paperless licensing is a service enhancement that

the industry will find useful. The Commission may elect to continue

sending paper licenses for a brief transition period while we make sure that

the new system is working properly. However, brokers should be prepared to

print and distribute licenses for their affiliated agents and associate brokers

beginning in December.

Please let us know how the new system is working and if you have

suggestions for how the Commission can improve our service in the

future. If you have any questions, please feel free to contact me at

[email protected].

Katherine Connelly is the Executive Director of the Maryland Real Estate CommissionFor more informaion, visit http://www.dllr.state.md.us/license/mrec

Maryland Real Estate Commission NewsKatherine Connelly

2525M A R Y L A N D R E A L T O R ® November 2011

Scan and find out how

M A R Y L A N D O F F I C E SAnnapolis 410-266-0600Bethesda 301-961-6000Canton 443-769-1700Crofton 410-721-3711Elkton 410-398-2401Federal Hill 410-547-5700Ft. Meade 410-519-4221Gaithersburg 301-948-4811Harford County 410-515-5300

Howard County 443-325-7890Ocean City 410-524-7000Ocean City West 410-520-2600Ocean Pines 410-208-3500Olney 301-260-7700Pikesville 410-484-8322Potomac Village 301-765-7653Roland Park 410-464-5500Salisbury 410-912-4700Severna Park 410-647-8000

Silver Spring 301-879-2600Towson 410-828-4700Waldorf 301-870-7653V I R G I N I A O F F I C E SAlexandria 703-836-1464Fairfax/Oakton 703-691-7653Hamilton 540-338-4171Kingstowne/Ft.Belvoir 703-550-7653Lake Ridge 703-497-7788

Leesburg 703-777-1250Manassas/Gainesville 703-396-6000Reston 703-716-2900Vienna 703-281-8500Winchester 540-722-9300Woodbridge 703-897-4663WASHINGTON D.C. OFFICESCapitol Hill 202-393-1111Uptown 202-243-4200

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PCR Maryland Realtor Ad_Nov 2011.indd 1 10/17/2011 2:06:45 PM


Maryland’s highest court of appeals has

upheld the Real Estate Commission’s decision

to revoke the license of a broker convicted of

sex abuse with a minor and child abuse by a

parent. (To protect the privacy of the children

involved in this case, we will not name the

licensee because the victims in the criminal

case were his daughter and niece.)

On January 29, 2007, the broker pleaded guilty to felony sex abuse and was

sentenced to four years in jail with three years suspended. Four months

of the remaining year of jail were to be served in the County Detention

Center and the remaining eight months on house arrest.

At the time, the Commission lacked authority to immediately suspend

his real estate license. Further, the Commission had no choice but to

allow the broker to renew his license and subsequently to exchange his

broker license for that of a salesperson.

The Commission successfully sought additional authority to address this

type of problem in the future from the 2008 General Assembly.

Real Estate Commission Wins Big in Maryland High Court

The Real Estate Commission filed its disciplinary action against the

broker in early February, 2007, alleging that, having been convicted of a

felony and engaging in conduct demonstrating bad faith, incompetency or

untrustworthiness, the broker was subject to reprimand, penalties, license

suspension and or revocation.

At the Office of Administrative Hearings, the licensee presented evidence

of his participation in a recovery program as well as therapy and counseling

sessions with a clinical social worker and psychotherapist. Counsel

argued on his behalf that his real estate practice was never affected by the

crimes he committed or the therapy he then was receiving. On behalf of

the Real Estate Commission, the Attorney General’s office argued that the

licensee’s sentence placed him on probation for five years, and one of the

terms of that probation was that he not have unsupervised encounters

with children. The abuse of his niece occurred over a fifteen year period

and, at the time of the hearing, it had been less than two years since his

guilty plea. Moreover, the Attorney General also pointed out that a

licensed real estate broker or agent normally has access to private homes

and to residents of those homes. It was reasonable for the Real Estate

Commission to take an especially close look at this licensee and consider

whether sufficient time had passed to have confidence in his

trustworthiness.

Regulation NewsMark Feinroth, Esquire


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*Based on data supplied by MRIS and its member Association(s) of REALTORS, who are not responsible for its accuracy. Does not refl ect all activity in the marketplace. 1/1/10 – 12/31/10. Information deemed reliable but not guaranteed, should be independently verifi ed, and does not constitute an opinion of MRIS or Long & Foster Real Estate, Inc. @2011 All rights reserved.

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The Administrative Law Judge recommended a six month license

suspension to allow for additional treatment and therapy prior to the

licensee’s resumption of real estate activities. The Commission disagreed

with the Judge’s recommendation and ordered a license revocation. The

licensee requested an exception hearing before the Commission and

appealed to the Circuit Court. When the Circuit Court upheld the

Commission’s decision, he appealed to Court of Special Appeals and then

to the Court of Appeals.

From the time of his guilty plea in January 2007 to the Court of Appeals

ruling on October 28, 2011, the licensee held a valid Maryland real estate

license.

As part of the expanded legislative authority the General Assembly passed

in 2008, based on this particular licensee’s case, licensees are now required

to notify the Commission about a felony conviction. The Commission is

authorized to immediately suspend the individual’s real estate license

based on the felony conviction. The licensee is entitled to a hearing as to

whether the license suspension should be continued.

While this case took five years to reach its conclusion, we can all

feel more confident that real estate licensees are subject to close

supervision by the Real Estate Commission when the licensee’s conduct

poses a threat to the public. Please feel free to contact me at

[email protected] if you have questions regarding this case

or any other matter related to the Real Estate Commission.

Mark Feinroth, Esquire, Director of legal and Regulatory Affairs

Maryland Association of REAlToRs®


Do you receive the MAR HoT sHEET?

This valuable and timely bi-weekly e-news blast is exclusively for MAR members. Don’t miss out on Contract changes, legislative news, Educational offerings, and reminders of benefits. Contact [email protected] and register. Also, visit Maryland Association of REAlToRs® Facebook page to keep you up-to-date.

MAR and sam’s Club Have Teamed Up

MAR and sam’s Club have teamed up offering a $10 gift card

when you join or renew your membership. Visit

www.mdrealtor.org and go to member

benefits. Download the certificate and take

it to any sam’s Club in Maryland.

Protect yourself from identity theft8.1 million adults in

the Us were victims of

identity fraud last

year. Register your

credit and debit cards

at BillGuard.com.

The FREE service scans your accounts every day for fraudulent or

unwarranted activity and alerts you by email to anything that

appears suspicious.

FREE MARKETING & TECHNoloGY ToolKIT FoR REAlToRs® MAR offers its members a free

subscription to The REAlToR®

Toolkit, a compilation of

noteworthy articles selected

from nearly 7,000

sources that

provide information and

ideas on marketing and

technology to help you

improve your business. Delivered directly to you by electronic

mail twice per month, The REAlToR ® Toolkit focuses on

productivity solutions dealing with communication tools,

Web-based technology, effective marketing techniques, success

stories and more. send your subscription request to

[email protected] or to review past issues go to

http://www.mdrealtor.org/Publications/REALTORToolKit

snippets


FREE Webinar Thursday Series • Usable Strategies • Increase Your Confidence

In Every Stage of the Profession!

pg 19

29M A R Y L A N D R E A L T O R ® December 2011/January 2012 29M A R Y L A N D R E A L T O R ® December 2011/January 2012 29

It’s time to RISE.And shine.

Prosper. Profi t. Grow. And love every minute of it.

HopeRises Realty needs you. We’re new (but not for long!). We’re hungry. And we’re looking for passionate REALTOR® agents—whether newly licensed or well-connected veterans—to join our team. We seek independent spirits throughout Maryland who value their profession and are eager to build their value.

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What an exciting year 2011 has been and we have you to thank for it! MRIS receives hundreds of customer suggestions a month and this feedback helps drive our product innovation efforts throughout the year. We take the most requested items and build our product roadmaps around that input.

Here are the Top 11 Core Product Enhancements you asked for in 2011

and MRIS delivered. All are included in your subscription fee, so make

sure you are taking advantage of these products, services and technology

tools to enhance your business:

1. MRIS.com email storage was increased from 200MB to 2GB

2. ezJoin which simplified the online registration process to save you

time

3. Matrix upgrades including auto-email updates, multiple carts, price

option for 1,000s and View As

4. Media Connect to quickly and easily upload multiple photos to your

listings from a PC or MAC

5. Compliance notifications are now sent via email so that you don’t

miss any important correspondence

6. Media Connect upgrade offering spell check and photo enhancement

7. Keystone enhancements with geocoding for more precise property

mapping

8. MRIS-U training portal allows you to search and register for MRIS

classes and access training materials

9. mrisTV.com your on-demand video portal, it’s all real estate, all the

time

10. HomesDatabase.com enhancements offer consumers new ways to

search for a home and connect with you

11. MRIS.com email mobile portal now accessible for email on the go

(mail.mris.mobile)

We love to hear what you need from MRIS and the ideas you have to

enhance our products and services, so keep the suggestions coming! MRIS

offers a variety of ways for you to share your feedback including:

• CommentatMRISBlog.com

• ShareideasatFacebook.com/MRISonFB

• Sendanemailto:[email protected]

• SpeakwithaClientAllianceManager(CAM)

• Stopbyourboothatevents

• Participateinafocusgroup

• Actasaproductbetatester

• Completeoursurveys

• WatchvideosandleaveusacommentatmrisTV.com

And we aren’t finished; we are hard at work on some exciting new

initiatives including a mobile smartphone app, upgrading Web Settlement

Xpress, building a new and improved Keystone and many other

enhancements that will improve the way you do business. Thanks again

for all of the fantastic ideas and comments. Keep them coming. Your input

does make a difference. MRIS is looking forward to helping you achieve a

very successful 2012.

For more information, go to www.mris.com

Metropolitan Regional Information Systems, Inc.

Top 11 Core Enhancements of 2011: A Look Inside the MRIS Innovation Lab

Top 11 Core Enhancements of 2011: A Look Inside the MRIS Innovation Lab

AD

1. How many homes in Maryland use oilheat?

2. Is a home’s value lessened because it uses heating oil?

3. How much cleaner do today’s oilheat systems burn than those from 1970?

4. Is it normal to smell oil in a home that uses oilheat?

5. Are leaking oil tanks a problem for homes in Maryland?

(See answers below.)

Because oil generates more Btu’s of heat and warms a home more evenly than any other fuel, it’s not a stretch to

describe the next oil-heated home you show as being among the warmest on the block. You could say that oilheat is the ultimate comfort fuel!

You can also tell your clients that today’s oil heating systems are much more reliable, effi cient and cleaner burning than the one they may remember at their grandparents’ house.

And you may be able to close the deal by talking about service. Clients who do business with a reputable oil dealer can expect to get fast personal service. Because keeping your family warm is not only their business; it’s their top priority.

Do you have all theall the

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1. About 300,000

2. No. The type of fuel used has a minimal effect on value, but a system’s age and effi ciency generally does.

3. 95% cleaner

4. No. A properly functioning system will not emit an odor.

5. No. Leaks are so rare that residential storage tanks are not regulated by the U.S. government.

An

swer

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Dec. 2010/Jan. 2011:

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MAPDA-FullPgAd-DecJan-11973.indd 1 11/15/11 5:08 PM

Commercial ConnectionBill Armstrong

You may have heard about a new rule called Qualified Commercial Real Estate Loan exemption standards, or QCRE, for short. QCRE is a rule developed by federal regulatory agencies as part of the Dodd-Frank Financial Reform Law. If implemented, this rule could have devastating effects on the commercial industry.

QCRE tries to ensure that lenders have “skin in the game” by holding

them responsible for 5 percent of any commercial real estate loan that

is packaged or pooled into a commercial mortgage-backed security,

unless certain criteria are met.

Due to its overly restrictive nature, QRCE would needlessly hold back

many otherwise solid transactions from taking place. I spoke about

QCRE in one of my podcasts this summer, and I’d like to talk about it

again because I think it’s that significant to our industry. Since the

premise of QCRE is requiring lenders to have “skin in the game,” I

decided to do a little research.

I found out the term “skin in the game” was coined by the legendary

investor, Warren Buffett. As he used it, it refers to a situation in which

high-ranking corporate insiders use their own money to buy stock in

their companies, as a way to build confidence among investors.

You may be thinking that if Warren Buffett believes skin in the game is

a good idea -- it must be, right? While it may make sense for stock

investors, when it comes to commercial real estate -- instead of

inspiring confidence, it could just make a fragile market worse. You

see, the only way lenders can get out of putting down 5 percent is if

over 30 criteria are met, including a 65 percent loan to value ratio and

debt service coverage ratio of 1.7. QCRE is the commercial counterpart

to QRM, and it will be just as damaging to the real estate business. In

other words, if the loan did not meet the debt service coverage ratio

requirement of 1.7 and a 65% LTV, the lender would have to guarantee

a portion of losses in the event the loan defaulted later on.

That’s a lot of unnecessary requirements to meet! Even if there were

only two or three requirements to meet, approximately 98 percent of

commercial loans still would not qualify.

You can see what this could do to our industry. It could increase

borrowing costs and reduce liquidity in the market while lending is

already constricted. It could stop otherwise viable commercial real

estate transactions right in their tracks. I don’t think we can afford that.

I hope you agree with me.

That’s why NAR is in contact with federal regulatory agencies to help

them finalize rules that would help -- not hurt-- the commercial real

estate market. We anticipate that we’ll see something finalized later

this year and we’ll keep you posted on REALTOR.org when that

happens.

I also invite you to join the conversation at the NAR commercial blog

at: www.Blog.CommercialSource.com

Bill Armstrong, 2012 NAR Treasurer, and 2000 MAR President

Bill Armstrong on

Commercial Lending and “Skin in the Game”


From the HotlineCharles A. Kasky, Esquire

authorized agents and property managers dealing with affected properties are urged to consult with their attorney to determine the appropriate course of action.

In Muskin v. State Department of Assessments and Taxation, the Court overturned a key part of the 2007 law, which extinguished unregistered ground rents. Under the Ground Rent Act, ground rent leaseholders were given three years to register ground rents with the State Department of Assessments and Taxation, or the ground rent would be subject to being extinguished. The ruling issued by the court said that extinguishing the ground rents is an unconstitutional taking.

The State Department of Assessments and Taxation has updated its website with the following statement: All ground rents that would have been extinguished for failure to register them are as valid as they were before the registration deadline. Any Certificate of Extinguishment issued by this Department is void and has no effect.

Although failure to register the ground lease cannot be the basis for extinguishing it, the ruling left intact the requirement to register ground rents. Now, however, there is no penalty for not doing so. On that note, the Court suggested some examples of alternative statutory approaches that would not be impermissible. For example, a similar registration scheme might be one where failure to register a ground lease triggers an interim consequence, such as restrictions on collecting rents prospectively, or a denial of access to the courts for enforcement of unregistered ground rents until registration occurs.

The state will likely notify homeowners that ground rents have been reinstated. We will update you on any legislative proposals to address this

issue.

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

Maryland Association of REAlToRs®

1-800-888-1272 • Monday, Wednesday and Friday • 10am – Noon and 2pm – 4 pm www.mdrealtor.org • Complete an Online Form available in the Legal Hotline tab

FREE lEGAlHoTlINE

Recent Maryland Cases Create Uncertainty

Two recent Court of Appeals Cases have created a great deal of uncertainty within the legal and real estate communities. Both were decided on constitutional grounds.

In the first case, the court held that the immunity provisions of the Reduction of Lead Risk in Housing Act (“Lead Paint Act”), which provide compliant landlords with qualified immunity from tort liability under specified circumstances, violate Article 19 of the Maryland Declaration of Rights. In the second case, the law (“Ground Rent Act”) extinguishing ground rents that were not registered was invalidated as an unconstitutional taking of property without compensation.

In the Lead Paint case (Jackson v. Dackman), the Court concluded that the substituted remedy under the Lead Paint Act for a child permanently brain damaged due to the child’s ingestion of lead-based paint in the rental property was inadequate and unreasonable to ameliorate the harm done. The Court also held that the unconstitutional provisions of the Act could be severed from the remainder of the Act, leaving all other provisions unchanged.

The Lead Paint Act defines “owner” to mean a person or entity who owns, holds, or controls the interest to any property. The Act specifies that the term “owner” includes any buyer in possession of the property and any authorized agent of the owner, including a property manager or leasing agent. The impact of the Court’s decision is that owners, agents and property managers are at an increased risk for liability resulting from an alleged injury or loss caused by the ingestion of lead by a person at risk. In other words, an affected person may sue an owner for an injury or loss and recover an amount exceeding $17,000, which was the maximum amount payable under the law, which is no longer applicable.

Property owners should continue to comply with all of the requirements of the Act. Property owners who “opt-in” to the program can continue to do so. As with pre-1950 properties, qualified immunity from tort liability no longer exists. Continuance of registration and performance of the risk reduction activities at each change in occupancy may assist in the demonstration of due care on the part of the property owner. Owners,



From the HotlineCharles A. Kasky, Esquire

Residential SalesAnirban Basu

Nothing dramatic has occurred in the

economic environment to suggest that the

level of housing market activity will be

materially different from what has been

transpiring currently. For much of this year,

price dynamics have been negative, with

both median and average sales prices still in

decline.

Unit sales have been roughly flat or in decline, implying that even

near-record low mortgage rates have not been enough to tempt large

numbers of potential homebuyers back into the marketplace.

Job growth continues to be subpar in Maryland. Though recent

months have been a bit better, Maryland has only added 0.5 percent to

job totals over the past year, roughly one half the national rate of 1.2

percent (September 2010 to September 2011). That pace of job growth

ranks Maryland 39th in the nation in that area. Economic and

employment growth is expected to be quite soft in the months ahead,

which implies that the status quo trajectory in the housing market is

unlikely to shift markedly over the next several months.

Housing Market Indicators Slump Again in October

Sales Prices Continue To Decline in Maryland


Residential sales Continued from page 35

According to data supplied by MRIS

and the Coastal Association of

REALTORS®, October unit sales were

down 2.8 percent in Maryland on a year-

over-year basis, with only 10 jurisdictions

experiencing sales increases. A

significant increase in sales was

registered in both Baltimore County

(20.1%) and Prince George’s County

(7.9%), both large counties with

significant supplies of affordable

workforce housing. These jurisdictions

appear to be attracting a significant

share of middle-income households

drawn to past and ongoing declines in

price levels. Between October 2010 and

October 2011, median sales price dipped

8 percent in Baltimore County and more

than 21 percent in Prince George’s.

Other jurisdictions registering year-over-year unit sales increases

in October include Talbot County (25%) and Garrett County

(12.9%), which might indicate renewed interest in the second

homes market in portions of Maryland. However, Worcester

County, home to Ocean City, experienced a 23.4 percent decline

in unit sales, which undermines that hypothesis.

october 2011 vs. 2010

UNITS AvERAgE PRICE

2011 2010 Change 2011 2010 Change

29 40 -27.5% $98,059 $108,418 -9.6%

369 366 0.8% $323,721 $357,754 -9.5%

325 342 -5.0% $126,008 $133,493 -5.6%

467 389 20.1% $234,217 $246,830 -5.1%

56 54 3.7% $291,087 $289,517 0.5%

12 20 -40.0% $164,583 $144,599 13.8%

100 102 -2.0% $277,441 $283,653 -2.2%

41 58 -29.3% $230,310 $247,422 -6.9%

117 126 -7.1% $227,129 $237,188 -4.2%

25 26 -3.8% $121,344 $195,577 -38.0%

183 176 4.0% $265,684 $283,634 -6.3%

35 31 12.9% $281,591 $398,117 -29.3%

142 201 -29.4% $250,980 $252,352 -0.5%

208 220 -5.5% $369,878 $394,753 -6.3%

16 11 45.5% $443,056 $231,173 91.7%

634 700 -9.4% $411,221 $439,590 -6.5%

626 580 7.9% $171,631 $208,857 -17.8%

43 33 30.3% $310,103 $271,342 14.3%

10 22 -54.5% $108,720 $107,872 0.8%

53 74 -28.4% $296,681 $297,106 -0.1%

30 24 25.0% $344,953 $853,508 -59.6%

87 81 7.4% $174,276 $158,155 10.2%

48 60 -20.0% $152,777 $150,195 1.7%

95 124 -23.4% $252,310 $309,329 -18.4%

3,751 3,860 -2.8% $264,183 $289,877 -8.9%

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



Other jurisdictions registering year-over-year declines in October unit

sales include Somerset (-54.5%), Caroline (-40.0%), Cecil (-29.3%), St.

Mary’s (-28.4%), Allegany (-27.5%), Harford (-24.9%), Wicomico

(-20.0%), Montgomery (-9.4%), Charles (-7.1%), Howard (-5.5%),

Baltimore City (-5.0%), Dorchester (-3.8%) and Carroll (-2.0%).

Sales prices continue to decline in Maryland. Average prices fell 8.9

percent statewide between October 2010 and October 2011, with 17

jurisdictions registering year-over-year declines. The largest decline

was experienced in Talbot County (-60%), where average price fell

from $853,500 to approximately $345,000. In Dorchester County

(-38%), average sales price dipped from roughly $195,600 in October

2010 to $121,300 one year later. In Worcester County, average price

was off by 18.4 percent. All of this suggests that available buyers on

the Eastern Shore are generally looking for

bargains, and that there is an ongoing lack of

significant emphasis upon luxury and

prestige. However, in Kent County, average

price was up nearly 92 percent, though this

was based upon a small sales sample of

sixteen units in October 2011. Other

jurisdictions experiencing average price

declines include Anne Arundel County

(-9.5%), Garrett County (-29.3%) and Cecil

County (-6.9%).

Among the seven jurisdictions that registered

increases in average sales prices over the past

year were Queen Anne’s (14.3%), Caroline

(13.8%), Washington (10.2%), Wicomico

(1.7%), Somerset (0.8%) and Calvert (0.5%).

It is important to note however, that a

number of these jurisdictions have significant

rates of workforce housing making properties more affordable and thus

more inclined to be purchased.

Looking AheadIn many ways, 2011 represented a repeat of 2010. The year was

associated with volatile financial markets, slow job growth, stubbornly

high unemployment, concerns regarding European sovereign debt,

policy uncertainty emerging from Washington and various state

capitals, falling home prices and cautious consumers. Next year may

in many ways reflect 2011, which implies that the housing market

recovery will continue to be a grinding one.

That said, there are still indications of progress. Pending unit sales

statewide totaled 5,441 in October 2011, up from 4,506 one year earlier.

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Home of Unlimited Opportunity

Weichert® Works

*Weichert.com received Bronze Award in the Real Estate category of the 10th annual International iNOVA Awards competition for its website, Weichert.com. Interactive Media Awards (IMA) Outstanding Achievement Award 2010 **2010 ASTD BEST Award from the American Society for Training & Development. Weichert is among 31 organizations from across the world to receive the award and ranked 12th overall out of the more than 100 organizations that entered the competition. Each Weichert franchised office is independently owned and operated. © 2011 Weichert Real Estate Affiliates, Inc. All rights reserved.

Equal Opportunity Employer

For over 40 years, Weichert, Realtors® has been providing the best quality tools, training and support for its sales associates. Today we are coast to coast with over 400 company and franchised offices and 18,000 agents strong.

The Weichert Difference· Award winning Sales Training*

· A Unique Lead Network providing quality leads to associates.· Weichert.com, an award winning Top 5 Real Estate Brokerage Website**

· Weichert University, online and available 24/7, with 150 courses to make you more productive.

· Time-proven Listing and Marketing systems to make you more successful.

Isn’t it time you let Weichert Work for you?Call a local Weichert office or visit Weichert.com.

RDL 272 WEI Realtor Ad_new direction MD.indd 1 6/20/11 8:47 AM

Here’s what you can expect from attending GRI – ■ networking and referral opportunities

■ increased knowledge on a wide array of topics and skill enhancements

■ confidence building through in-depth knowledge, skills training and better understanding of industry practices

■ earn a national designation which has proven greater income potential

■ receive continuing education credits, and

■ earn credits toward your broker/associates broker’s license.

Why wait?

GRI – The Next Level

For class schedules and program details, visit www.mdrealtor.org. Click the Education tab and scroll to REALTOR® Institute (GRI), GRI Overview.

This represents an increase in pending sales of 21 percent. However,

this figure may be biased upward due to the impacts of the federal tax

credits available in 2010, which likely accelerated sales early last year

and therefore may have created a drag on sales thereafter.

The active inventory of unsold homes has fallen from 40,302 to 34,277

over the past year. This represents a decline of almost 15 percent. The

implication is that supply-demand equilibrium is approaching.

Months of inventory has fallen from 10.4 months to 9.1 months. In

certain jurisdictions, equilibrium has already been achieved, including

in Montgomery County where the months of supply is down to 5.1

months. In Prince George’s County, evidence of progress remains

apparent, with the months of inventory now down to 6.3 months from

8.5 months one year ago. Howard and Frederick counties also have

months of inventory below 7 months.

For the pace of recovery to accelerate, a few things must occur. First, job

growth must accelerate significantly. This will help support both the

first-time and move-up buyer markets. Second, asset prices must

continue to rise, including equity prices. Better stock market

performance would both boost confidence among prospective buyers

and would also create greater resources available for down-payments.

Finally, lending conditions and appraised values must stabilize to enable

a larger share of prospective buyers to qualify for mortgages.

Anirban Basu, sage Policy Group, Inc.


Home of Unlimited Opportunity

Weichert® Works

*Weichert.com received Bronze Award in the Real Estate category of the 10th annual International iNOVA Awards competition for its website, Weichert.com. Interactive Media Awards (IMA) Outstanding Achievement Award 2010 **2010 ASTD BEST Award from the American Society for Training & Development. Weichert is among 31 organizations from across the world to receive the award and ranked 12th overall out of the more than 100 organizations that entered the competition. Each Weichert franchised office is independently owned and operated. © 2011 Weichert Real Estate Affiliates, Inc. All rights reserved.

Equal Opportunity Employer

For over 40 years, Weichert, Realtors® has been providing the best quality tools, training and support for its sales associates. Today we are coast to coast with over 400 company and franchised offices and 18,000 agents strong.

The Weichert Difference· Award winning Sales Training*

· A Unique Lead Network providing quality leads to associates.· Weichert.com, an award winning Top 5 Real Estate Brokerage Website**

· Weichert University, online and available 24/7, with 150 courses to make you more productive.

· Time-proven Listing and Marketing systems to make you more successful.

Isn’t it time you let Weichert Work for you?Call a local Weichert office or visit Weichert.com.

RDL 272 WEI Realtor Ad_new direction MD.indd 1 6/20/11 8:47 AM

Documents

December 2011/January 2012