June 2011/July 2011

Take a ‘walk around’p 32

p 32

September 12-14, 2011Register Online or See

Registration Material on page 32

p 3

Also In This Issue:

p 8 RPAC of Maryland 2010 Leaders of the PAC

p 14 Checkers or Wreckers 2011 Legislative Review

p 20 Economic Forecast

The MArylAnd AssocIATIon of reAlTors® www.MdreAlTor.org The Voice for Real Estate® in Maryland

VolUMe XlV nUMber 4 JUne/JUly 2011

consumer website:www.MArylAndhoMeownershIP.coM

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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.

June is Homeownership MonthCathy A. Werner

Last week, over 8,000 members of the National Association of REALTORS® from around the country were in Washington to meet with their states’ Congressional Delegations. Their message was simple: “Don’t let homeownership become out of reach for future generations.”

Maryland REALTORS® were among them. We urged our members of Congress to remember some key points as they make decisions that threaten homeownership: • Maintainthemortgageinterestdeduction(MID). Any change to this

deduction will slow the housing recovery in Maryland, where homeowners are the highest users of MID in the country. We urged them to cosponsor H.Res 25 to keep the MID.

• Allowforreasonabledownpayments. The proposed 20% regulatory requirement for “qualified residential mortgages” will subject the vast majority of credit worthy borrowers to higher rates and other hurdles. Congress must ensure that home mortgage loans are available to credit worthy consumers in every community. Increasing down payments only puts homeownership more ‘out of reach’ for many Maryland families.

• Preserve the 30-year fixed rate home mortgage. The Federal government must have a role in the secondary mortgage market. If it does not, the 30-year fixed rate mortgage will be a thing of the past, and mortgage rates with be much higher.

YOU CAN HELP CARRY THE MESSAGE

I know you as a practitioner are concerned about the future of real estate and homeownership. Here are some simple steps that you can do right now to carry the message that Maryland Homeownership Matters.

Numbers do make a difference—respond to the calls to action by your state, local, and national associations or your broker. OPENTHEEMAILANDRESPOND! It takes less than a minute and it really does have an impact.

Directly contact your Congressional representatives at all levels on issues important to maintaining and protecting private property issues.

Educate your clients and those in your spheres of influence. Tell them how REALTORS® are actively trying to protect their rights and interests. Encourage them to ask their Member of Congress and our Senators to support homeownership.

This is our industry and these are our communities. REALTORS® are the only voice for homeowners and homeownership. If you care about your livelihood and the interests of your clients, now is the time to take action.

Learn more—log on to www.mdrealtor.org and go to Government Affairs News.

3M A R Y L A N D R E A L T O R ® June/July 2011

HOMEOwNERSHiP MATTERS

N O T J U S T A ‘ C A T C H Y P H R A S E ’

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4 M A R Y L A N D R E A L T O R ® June/July 2011

June / July 2011

table of contents

f e A T U r e s 8 leAders of The PAc: 2010 edITIon REALTORS® Political Action Committee of Maryland

14 checkers or wreckers MAR 2011 Legislative Review

20 econoMIc forecAsT There’s Still Plenty of Reason for Concern,

but the Reasons Have Changed

27 2011 AnnUAl conference And TrAdeshow MAR Rally for Success 2011

32 TAke A ‘wAlk AroUnd’ MArylAndhoMeownershIP.coM

d e P A r T M e n T s

3 HOMEOWNERSHIP MATTERS – noT JUsT A ‘cATchy PhrAse’

6 MAr 2011 leAdershIP TeAM

34 froM The hoTlIne Independent Contractors in Real Estate –

Know the Rules

36 regUlATIon news Final Continuing Education Regulations

37 MArylAnd reAl esTATe coMMIssIon news Agency Intricacies

38 MrIs UPdATe Market Your Way with Media Connect

40 snIPPeTs & IndUsTry TIPs

42 resIdenTIAl sAles Maryland’s Housing Market Limps into Spring

46 coMMercIAl connecTIon Maryland Green Building Initiatives on the Rise

32

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2011 Maryland Association of reAlTors® leadership Team

Patricia A. TerrillPresident - ElectPrudential carruthers reAlTors®

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

Carlton J. Boujai Jr.Secretary exit realty Prosperity group5300 Westview DriveSuite 105Frederick, MD [email protected]

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

Steve MeszarosImmediate Past President yerman, witman, gaines & conklin realty1500 Whetstone WaySuite 100Baltimore, MD [email protected]

Cathy A. Werner Presidentre/MAX American dream9414 Belair RoadBaltimore, MD 21236-1504410.529.7900Fax [email protected]

Maryland Association of REALTORS®

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

800.638.6425 | www.mdrealtor.org

Executive Leadership TeamCathy A. Werner | President

Patricia A. Terrill | President-ElectCarlton J. Boujai Jr. | SecretaryCarole A. Maclure | Treasurer

Steve Meszaros | Immediate Past PresidentMary C. Antoun | Chief Executive Officer

EditorDeborah L. Hager | [email protected]

Advisory CommitteeKen Montville | Chair

Ron Howard | Vice Chair

Advertising & Publication DesignArt Comp & Design

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

410.252.4027 | www.acd1.com

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 long and foster real estate, Inc.4650 East West HighwayBethesda, MD 20814-5330301.907.7600 Fax 301.907.6610 [email protected]


2 0 1 0 e d i T i o n

of the PACLeaders

Thank You to all our 2010 RPAC Contributors. Your support of RPAC demonstrates your insight about the importance of our efforts to support candidates who support our industry and our profession. Special thanks to the continued, generous support of RPAC Golden R Contributors for their extraordinary leadership and dedication.

President’s CirCLeThose REALTORS® who are major donor contributors AND pledge $2,000 direct-candidate contributions.

W Mary AntounW William ArmstrongW Carlton BoujaiW Rick BrownW Bonnie CasperW Adam CockeyW Gloria FarrarW Iona HarrisonW John HarrisonW Al IngrahamW Ilene KesslerW Janice KirknerW Carole MaclureW Steve MeszarosW Ken MontvilleW Shelly MurrayW JoAnne PooleW Dale RossW Cathy Werner

GoLden r ContributorsThank You Golden and Sustaining Golden R Contributors!

W William ArmstrongW Bonnie CasperW Greater Capital Area Association

of REALTORS®

W JoAnne Poole

sustaininG GoLden rW Mary AntounW J. Thomas Carruthers IIIW Adam CockeyW Greater Baltimore Board of REALTORS®

W Iona Harrison

W John HarrisonW Alan IngrahamW Ilene KesslerW Carole MaclureW Maryland Association of REALTORS®

W Prince George’s County Association of REALTORS®

W Dale Ross (Pioneer Realty)W Joan RyderW Jay WebsterW Cathy WernerW Wayne Wyvill

sustaininG CrystaL rW Thomas EarnestW Gloria FarrarW Harford County Association of REALTORS®

W Howard County Association of REALTORS®

W Marc WitmanW William Yerman

sterLinG r ContributorsThe RPAC Trustees would like to recognize first-time Sterling R Contributors for their generous contribution of $1000 to RPAC in 2010. Thank you for your support!

W Cheryl AbramsW Waribo Adasi-EfuyaW Jean AndrewsW Cheryl BareW Candace ClasterW John CollerW Roger FairbournW John FordW Howard County Million Dollar ClubW Bob KimballW Michael McGreevyW Rebecca PerlowW Audrey PrimozicW Patricia TerrillW Meredith Weisel

RealtorParty

®

VOTE ACT INVEST8 M A R Y L A N D R E A L T O R ® June/July 2011

,

Local Board that Exceeded their GoalMarianne Ferguson (Harford County President-Elect)

MuLti-year sterLinG r ContributorsThe RPAC Trustees would further like to recognize our MULTI-YEAR STERLING R CONTRIBUTORS for 2010, and thank them for their support!

W Timothy Blanchfield – Two-Time Sterling RW Desiree Callender – Two-Time Sterling RW Brian Donnellan – Two-Time Sterling RW Rick M Rall Jr. – Two-Time Sterling RW Marilyn Rhodovi – Two-Time Sterling RW P. Joy Siegel – Two-Time Sterling RW Kenneth Smallwood – Two-Time Sterling R

W Barbara Baumler – Three-Time Sterling RW Russell Boyce – Three-Time Sterling RW Richard Brown – Three-Time Sterling RW Thomas Hough – Three-Time Sterling RW Fred Pumphrey – Three-Time Sterling RW Stephanie Rall – Three-Time Sterling RW Noel Wood – Three-Time Sterling R

W David Charron – Four-Time Sterling RW Frederick County Association of REALTORS® – Four-Time Sterling RW Janice Kirkner – Four-Time Sterling RW Charles Llewellyn – Four-Time Sterling RW Shirley Matlock – Four-Time Sterling RW David McIIvaine – Four-Time Sterling RW Bob Simon – Four-Time Sterling R

W Michael Cerrito – Five-Time Sterling RW Joanne Darling – Five-Time Sterling RW Karol Hess – Five-Time Sterling RW Claude Humbert – Five-Time Sterling RW Stephen Meszaros – Five-Time Sterling RW Jill Pogach Michaels – Five-Time Sterling RW Kenneth Montville – Five-Time Sterling R

W Carlton Boujai – Six-Time Sterling RW Carroll County Association of REALTORS® – Six-Time Sterling RW Coastal Association of REALTORS® – Six-Time Sterling RW Creighton Northrop – Six-Time Sterling RW Susan Pruden – Six-Time Sterling RW Ashley Richardson – Six-Time Sterling R

W Alease Bowles – Seven-Time Sterling RW Melvina Brown – Seven-Time Sterling RW Alana Lasover – Seven-Time Sterling RW John Lesniewski – Seven-Time Sterling RW Michael Moran – Seven-Time Sterling RW Ann Moxley – Seven-Time Sterling RW Shelly Murray – Seven-Time Sterling RW Thomas Quattlebaum – Seven-Time Sterling RW Patrick Ulrich – Seven-Time Sterling R

W Jack Bannister – Eight-Time Sterling RW Buzz Mackintosh – Eight-Time Sterling RW Barbara Miles – Eight-Time Sterling RW Patricia Smallwood – Eight-Time Sterling R


W Cindy Ariosa – Nine-Time Sterling RW Boyd Campbell – Nine-Time Sterling RW Anne Cooke – Nine-Time Sterling RW Alexander Karavasilis – Nine-Time Sterling R

W Jan Hayden – Ten-Time Sterling RW Jeanne Turnock – Ten-Time Sterling R

W Mary Lou Kaestner – Eleven-Time Sterling RW Judy Morris – Eleven-Time Sterling RW Nancy Simpers – Eleven-Time Sterling R

W Jody Landers – Twelve-Time Sterling R

W Real Estate Million Dollar Association of Baltimore – Fifteen-Time Sterling R

W Georgiana Tyler – Fifteen-Time Sterling RW Harold Huggins – Eighteen-Time Sterling R

W Michael Yerman – Twenty-Time Sterling R

W Nancy Hubble – Twenty-One-Time Sterling RW Women’s Council of REALTORS® – Twenty-One-Time Sterling R

W Nicholas D’Ambrosia – Twenty-Two-Time Sterling R

W Distinguished Sales Club of Prince George’s County – Twenty-ThreeTime Sterling R

W Women’s Council of Prince George’s County – Twenty-Three-Time Sterling R

,

Local Association that Exceeded their GoalFirst Association to Reach their GoalLocal Association with Highest Dollar Percentage over GoalPictured left to right: Marie Shantz (Carroll County Local Association President)Janice Kirkner (Carroll County Local RPAC Trustee)

Local Board with the Most Sterling R ContributorsLocal Board that Exceeded their GoalPictured left to right:Jody Landers (Greater Baltimore Board Association Executive)Bob Kimball (Greater Baltimore Board President)

Most Improved Local Association- Dollar PercentageLocal Board that Exceeded their GoalLocal Association that Exceeded Goal by Most DollarsPaul Fenton (Southern Maryland President-Elect)

CaPitaL CLubW Phyllis AdamW Diana ArmacostW Susan K BaldersonW Wendy I BannerW Bay Area Association

of REALTORS®

W Kathleen F BeadellW Thomas A BennettsW Rusling D BlackburnW Carolyn Blanchard-CookW Brenda BlaneyW James M BlaneyW John P BragaleW Damian E BuckleyW Tracy BurkeW R. Bruce Campbell

(Wallace H Campbell & Co.)W J. Joseph CaseyW William A CastelliW Collette B CavegnW Anita M CentofantiW Boyd Campbell

(Century 21 Home Center) W Gazexer Green

(Champion Homes Realty LLC.)W John P CinquegraniW James M Coley Jr.W Lori M ConnorW Terence F DalyW Kay DeitzW Alicyn DelZoppoW Anthony R DeVolW Katherine DixonW Thomas J DrechslerW Connie DubeW Jennifer DwyerW Frank G FergusonW Margaret M FinnW William J FitzgeraldW Gregory J FordW Carl T FranzenW Jeffrey S GanzW Joan E GardinerW Gina GargeuW Eleonore A GerstenfeldW Lee R GoldsteinW Elizabeth C GrayW Jamie L GregoryW Patricia C GrothW Dana H HarawayW Edward G HarawayW Shari L HarrisW Theo HarrisW Mynor R HerreraW Barry Hess

W Sharon K HinerW Gregg B HollandW James R HyattW Joanie M HynesW Robert L JebsenW Marla JohnsonW Guy D JoseyW Ellen C KatzW Russell S. KatzW Sandra KennedyW Roberta D KimballW Elley S KottW Anthony C LauniW Martha B LessnerW Reuben F Lilly Jr.W Patricia H LongW Diane M MahaffeyW Santhy MalliosW Aaron M MaxW Ann McClureW Sharon A McKennaW Linda McKinnonW Dennis B MelbyW George E MitchellW Linda A MoranW Nathalie F MullinixW Amy R MusherW Vittorio MuzzattiW William J Neary Jr.W Dean A NoahW Cristina L O’Bryhim-CurtisW Michael W PatrickW Erin M PhelpsW Robert G RamoyW Kelly RenfroW Richard M RhodesW Ned RichW Amy Ritsko-WarrenW Roni SchultzW Anne C SmoleyW Mo B SnowdenW Connie M StommelW Pamela D StoneW Craig J StrobelW Jeffrey SussmanW Lynda O TeubnerW Virgil R TwiggW William Van HornW David R VaneW Patrick A WeedW Norman P WehnerW Harlan C WilliamsW James D WilliamsW Linda F WilsonW Philip L Wineman VIIW William R Wootan



$99 CLubW JA Falkenstein

(Absolute Appraisals)W Allison E AdamsW Gregg AdamsW Jeffrey Sussman

(Company Advantage Title)W Deborah A AiliffW Akinbode AkinolaW Eugene S Albert Jr.W Lewie A Aldridge IIIW Jacqueline A AlexanderW Semere AmbayeW Allan P AmernickW Allen K AndersW Leon G AndersonW Bernard AndrewsW Leon W AndrisW Kannan AnnamalaiW Jeffrey AnnisW Kathleen F AnselmoW Frederick W ArcherW John F ArgentinoW Cuvator H ArmstrongW John M Ashley IIIW Steve L AtkociusW Brian D AustinW Nairi C BalianW Robin BallingerW Joseph M BarryW Thurman L BattleW Chris BeallW William F BeauchampW Debra BeitzelW Deborah BenkertW Wayne P BensonW Michael W BentonW Molly A BeringsonW Janet L BernardW Donald BerryW Dan G BetsherW Donald L BiedenbackW Daniel M BilligW James H Billingslea Jr.W Bill BittnerW Alexandra D BlondW Gary BockelmannW Nancy BoehmerW Achala BondeW Jaime R BordaW Susan R BosloughW William G BowenW Ronald BowersW Fred C BrandW G V Brenneman Jr.W Jonas Brodie

W George W BrookhartW Thomas B BrooksW Anne M BrownW Hattie L BrownW Maria A BrownW Leo A BrusoW Elizabeth BuffingtonW Cam A BuntingW F (Chip) BurnettW William E BurrisW Linda V BurtonW Mark C ButterfieldW Mary CalderW Andrea F CaldwellW Lisa S CameronW Juan F CamposW Teresa J CaplanW Michael J Casey Sr.W William F CassidyW James R CastleW Peggy CastleW Jennifer S ChaneyW Lin ChenW William Turner

(Chesapeake Bay Realty)W Herbert E ChisholmW Christina ChristopherW Barbara A CimentW Galen R ClagettW Jamaal S ClaggionW Garnett Y Clark Jr.W Jann ClarkW Joseph M ClarkW Kathleen M ClarkW Thelma K ClarkW Wm N ClarkW James F ClementW Geoffrey R CloseW Rory S CoakleyW Julian CoinerW Bernadette L ColeW John J CollinsW Gretchen L ConleyW Robert M ConnellyW William J ConnorW Raymond S Contee Jr.W Carol E CookW David M CoombeW Peter S CopenhaverW Kay D CorbinW Andie J CorbyW Dottie J CordwellW Lou Ramsay CottaW Dean E CottrillW James B Coulter Jr.W Gerald A Cousineau Jr.

W Neda R CoxW Daniel F CraneyW Jennifer L Cropper-RinesW Mary Judith J CurrenW Donald R CurryW Morris A CurtisW Richard M CurtisW Sharon CurtissW Ronald D’AnnaW Anne Smoley (DANDAS, Inc.)W Rhonda C DardenW Leslie E DaviesW Anita T DavisW Ann B DavisW Herbert A DavisW Phyllis DavisW Robert L Davis Jr.W William R DavisW Joyce L DealeW Yvonne DeardorffW Don M DeHanasW Rachel A DeHanasW Joseph A DeLucaW Sara DembW Michael DemyanW Jill C DennisW William D DewarW Kevin J DeyW James C DiamondW Denise M DianaW Linda C DieterW Judith M DiFilippoW Barbara DiscenzaW Maria Willis DodgeW Tiffany S DomneysW Glenn DonaldsonW Karen L DonaldsonW Eugenia C DonnellyW Gertrude O DouglasW R L DowneyW Patricia A DowtinW Michael R DraperW Betty A DruryW Tammy L DumenilW Mike DunnW Bonnie G DypskyW Daniel A EarlyW Maureen A Earp WoodW Maria P EavesW James K EderW Chris Jett

(Elite Marketing & Sales, LLC.)W Mary Ann ElliottW Malik O Ellis

(Horizon Real Estate Group)W Duane M Emmet

W Troy D EmoryW Norma S EpsteinW John P Evans, Esq.W Peter D EvansW Richard E EvansW Michael Farabaugh IIW James FeganW Paul J FentonW Marianne S FergusonW Steve L FergusonW Carol D FeriaW Lynn FinckelW Brian L FlookW Gabriel J FontanaW Eric FordW Julia S FortinW Sandra M FoucheW Preston FoukeW Carole K FradkinW Terri FranksW Ben Frederick IIIW Candice L FridayW Martin FriendW Maria B FronebergerW Edwin R FryW Sarah M FuntW Carol J GambleW Susan C GarczynskiW Luciano GarganoW Marianne V GarrisonW Richard E GatchellW Theresa A GattonW Robert G GaugerW James L Gay IIIW Baochun GeW Ivy K GiffordW Paula H GilleyW Kim K GillumW Jean Gilman IIIW Jennifer GlassW Suzanne GlockerW Fred GodmanW Jason GoldbergW Quyen Quach

(Golden Gate Realty, Inc.)W Robert R GoldenW Ashton G GonellaW Karrie M GonzalezW Melissa S GoodfellowW Michael P GoodfellowW Judith A GordonW Thurman S GrahamW James W GranzowW Christine L GrayW Mike GrazianoW Rebecca F Greco


leaders of the PAc continued from page 11

W Elizabeth A GreenW Janet J GreeneW Jason S GreggW Rachel GroveW Mary M GrovenW Neng-hua GuoW John GuynnW Susan E HaleW Bonnie J HaleyW Robert A HallW Alan HalleW Peter A HamelmanW Mary C HamersleyW William E. Hand Jr.W James F HanesW Gwendolyn B HankersonW Yvonne Y HardyW Aaron B HargroveW Thomas HarnerW John A HarrisonW Craig P HarshmanW Joyce H HartnettW Thomas HarwoodW John S Hawk Jr.W Elizabeth M HaysW Sigrid S HaywardW Dale W HellerW Irene E HellerW Susan HemmerlyW William J HennessyW Jo-Ann HenryW Elsie M HerbstW Arthur F HessW Joseph B HigdonW Wanda J HiggsW Debora E HilemanW Cheryl E HillW Kim A HillsW Helen G HillstromW Historic Highlands Association

of REALTORS®

W Daniel E HoffW Samuel C HoffW Mary L HoffmanW Donna L HoffmannW Lawrence J Hogan Jr.W Vaughn R HogansW Earline K HollowayW Mark S HollowayW William J HomokyW James B HooperW Lucia P HopkinsW Timothy N HopkinsW Clarence E HorstW Sara L Hourihan-TaylorW Robert P HowardW Edward B Howlin Jr.

W Paing T HtooW Tai L HuangW Larry R HudsonW Diebold E HughesW Linda C HughesW John W Hurt Jr. W James R HustonW Judith E IsomW Marcia U JacksonW Sanford B JaffeW Gary L JamesW Francis L JenkinsW Sandra L JenkinsW Ann F JohnsonW George H JohnsonW Robert E Johnston IIIW Robert L JohnstonW Sharon S JohnstonW Candice E JonesW R Bruce JonesW John J JubinW Rose Marie JungW Alfred B Kagan Jr.W Patrick J KaneW Carolyn C KappraW Thomas KeatsW Edwin L KellyW Joan L KennedyW Heidi S KennyW Meghan KerlavageW Renee M KeshishianW Wilson S KidwellW Karen L KilhefferW Chang K KimW Brooke E KingW Edisel D KingW Kim KingW Marsha KinzerW Marney P KirkW Peter J KlebenowW Diana KleinW Donieta Jeni KneessiW Leah D KnoerleinW Elaine S KoganW Mark K KonkaW Charles L Koontz Jr.W Jenny KoontzW Jeffrey J KrahlingW Edward KrauzeW Paul C LancasterW Suzanne G LancelottaW Billie D LandbeckW Annette E LaneW Robert L Langley Sr.W Joan Sharon S LanierW Cynthia M LantzW Nicole D Lapera-Holler

W John J LaveryW Leigh Lawson-EverstineW William D LeagerW Jennifer LeagueW Scott M LedererW Jonathan P LeeW Mary A LeeW Peter S LeeW Ginger Bigelow

(Legacy Settlements)W Malcolm W LeggettW Ronald L LeonardW Thomas R LeveranceW Michael S LevineW Theodore W Levy Sr.W Denise M LewisW George M LeypoldtW Arlene O LinnW Matthew E LipskyW Jane L LitchfieldW Dawn M LitrentaW Lungchiang E LiuW Sandra M Lofgren-SargentW Jeremy LoomisW Stephen LovelletteW Charlotte A LoweW Robin S LowerW John D LowryW Freda K LusbyW Beth J LuskeyW Gary G LuttrellW Leonard J Lyons Jr.W Michael J LyonsW John C MacBrydeW Sydney L MachatW John C MackieW Andrew V MackintoshW Dennis P MaguireW Kathy MaloneW Kevin M MaloneyW Ali R MansouriW Robyn D MarbrayW John S Margelos Sr.W Jacqueline S MargolisW Diane M MarsdenW Gilbert D Marsiglia Sr.W William E Martin Jr.W Judith I MartinakW Paula MartinoW Cynthia A MassariW Grace P MastenW Christine P MasterW Zakhar MatlinW James E MatthewsW Jeffrey A MatthewsW Barbara C MattinglyW Dale E Mattison

W Brian P MauryW Patrick McClaryW David D McColloughW John McConnellW Vernee J McFarlinW Walter F McGuire Jr.W Karen A McHughW Sherilyn McLaughlinW Joan McLernonW Christopher D McMahonW Susan B MegargeeW Francis A MehlfeltW Ronald D Mellott Jr.W Deborah A MeushawW Ronald B MeyerW Catherine MeyersW Kathleen A MillerW Willie T MillerW Shannon Miller-LutzW Phyllis L MinikW Ronald F MiscavichW Donna MoffettW Sandra N MongerW H. Barry MontgomeryW Allison D MooneyW Thomas J Mooney IVW Cheryl A MooreW Kieyasien K MooreW Constance J MorrissetteW Debra MoserW Cynthia G MosesW Maynard Gottlieb

(Mr. Lister Realty, Inc.)W Michael J MurenW Deanna MurphyW Dennis C MurphyW Madeleine MurphyW Judy L MurrayW Arletha MyersW Susan MyszkowskiW Nanci NeffW Barbara NevilleW Kimberly Ann NicholsonW Vernon J Nily Jr.W Brodist R NortonW Boyd Campbell

(Nova Companies, LLC.)W Kim A Nunnally-WilliamsW Simon N NwaigweW Mary C O’BrienW Michael P O’BrienW Nnaemeka A Obiegbu-ChimaW Gerard F OcchiuzzoW John Michael O’ConnellW Moon S OhW Michael OleruW Christina B O’Meara


leaders of the PAc continued from page 11

W John C O’NeillW Sue D PakullaW David D Palmer Jr.W Sarah I PaplauckasW Bonnita A ParksW Irene C ParksW James ParksW Irene B ParrishW Barbara PasswaterW Lanell PatrickW Stephen T PaulW Art PayneW Kathi L PayneW Vincent PayneW Nicole M PeterW Craig B PittingerW Joan PittroffW Claudia F PleasantsW Daniel L PlombonW Carol S PlunkertW David D PoolW Doug PooleW Margaret C PossW Stephen J PotortiW Jeffrey C PowellW Patrick PowersW Quyen QuachW Jean I QuattlebaumW Carter RardonW Rick Saylor

(RCS Home Inspections)W RE/MAX SolutionsW Tammi ReederW Margaret M RegnierW John E ReidW Bonnie S ReioW Walter A Reiter Jr.W Janet ReynoldsW Elizabeth A RhodesW Willie M RhoneW Dean RichardsonW Jon J RidgewayW William B Rinnier Jr.W Renaire E RiversW Carolyn I RobersonW Gayle RobertsW James C RobinsonW Charles RodriguezW Sharon L RogersW Karen L RohrbaughW Harry R RoopW Charles I RosenW Faith M RosselleW J Quinn RounsavilleW Patricia A RoweW Robert C Ruggieri IIW Mary Betsie Russell

W Mia B RussellW Sherri J RussellW Alexander RuygrokW Sandy L SadlerW Brenda K SarverW Edward J SauerhoffW Steven S SaundersW Monzella Saunders-OwingsW George R SavaniW Patricia M SavaniW Ruby D SchererW Nick SchiaffinoW Tazuko O SchmitzW James F SchneiderW Louise SchultzW Hattie C ScottW Gene J SementilliW Mark A ShapiroW Harry A ShashoW Robert T Sheets Jr.W James W Shelton Jr.W Carol SimmonsW Vito SimoneW Art S SimpsonW Alfred L SingerW Van SinghW Guy SloneW Douglas M SmithW Kenneth E SmithW Larry E SmithW Linda D SmithW Sandra J SmithW Kenneth J SmondrowskiW RoseAnn C SpaltW Mark SponskyW Lisa M St. ClairW Debbie StallingsW Jeremy StallingsW Glenn B StaplesW Art Hess (Statewide

Real Estate Services)W Marvin SteenW Carl V SteinW Stuart J SternW Patricia StinnettW Paul L StokesW Gregory M StoneW Dennis StoufferW David StraitmanW Stephen W StranW Joan M StrangW David H StrombergW Kathy L SuiteW Ronald L SullivanW Timothy B SullivanW Carol A SutfinW Max Sweet

W Shauna TalbotW Doannie A TambascioW John W TauberW Michael TaylorW Ronald G TaylorW Bonnie J TeagueW Maria A TerryW Lee R TessierW Mary ThingelstadW Thomas ThingelstadW Timothy K ThomasW Jean A ThompsonW Evelyn E ThorneW Jennifer D TilghmanW Boyd Campbell

(Title Max LLC.)W Keely E TolleyW Karen J TowneW Kevin M TracyW Leland B TriceW Evelyn K TrimbathW Debra L Trott PoquetteW David L TrowerW Kevin TurnerW Chad TylerW Judy C TyreeW Harry D Van MaterW Laura A Van MeterW Lisa VelenovskyW James F VelichW Kelly R VezziW John Von ParisW Frances WadeW Pam J WadlerW Annette M Wagner

W Stephen WalkerW Daniel WalshW Paul W WangW Marysusan S WanichW Elinor W WarringW Devin J WarwickW Barry P WatermanW Mareen D WatermanW Michael C WeisnerW David J WeissW Jay WeitzelW Barbara F WhitakerW Charles W WhiteW Edward A WhiteW Tammy WhiteW Diana L WhitneyW Kevin A WilesW Farone WilliamsW Jennifer WilliamsW Cynthia L WilsonW Leonard E Wilson Jr.W Mark F WilsonW Maurice O Wimbrow IIIW Charles W WindsorW Sandra K WingW Janet A WojaczykW Craig WolfW Mimi WoodW James F WrightW John L WrightW Elizabeth WynneW Darlene ZeppW Yili Zhang

ConGratuLations to aLL reaLtor® LoCaL boards/assoCiations that exCeeded their 2010 rPaC GoaLs!

W Anne Arundel County Association of REALTORS®

W Bay Area Association of REALTORS®

W Carroll County Association of REALTORS®

W Cecil County Board of REALTORS®

W Coastal Association of REALTORS®

W Frederick County Association of REALTORS®

W Garrett County Board of REALTORS®

W Greater Baltimore Board of REALTORS®

W Greater Capital Area Association of REALTORS®

W Greater Washington Commercial Association of REALTORS®

W Harford County Association of REALTORS®

W Historic Highlands Association of REALTORS®

W Howard County Association of REALTORS®

W Pen-Mar Regional Association of REALTORS®

W Prince George’s County Association of REALTORS®

W Southern Maryland Association of REALTORS®

CheCkers

WreCkersOr

Given the concern expressed by rural

legislators as well as interest groups like

MAR, the Governor agreed to “study”

the septic issue over the summer, so

the various bills were never voted.

Recently, the Governor announced

the creation of a Task Force on

Sustainable Growth and Wastewater

Disposal to carry out the study. The

Task Force will include interested

parties from real estate,

development, local

government, agriculture, and

environmentalists. The goal

of the group is to seek a solution

to poorly planned growth

and pollution released

from septic systems.

“Checkers or Wreckers” is a familiar

NASCAR phrase that means a

driver is either going to come in

first or crash trying. It’s also a

pretty good description of the

legislative session just

ended for Maryland

REALTORS®, as we geared

up to oppose one of the

Governor’s key initiatives: a

prohibition on new septic

systems in subdivisions of 5

or more units. MAR’s

leadership was committed

to either stopping this

proposal outright or

crash trying.

Fortunately for us this

year, it was the

checkered flag.


by bill castelliVice PresidentMAr government Affairs


We are pleased, too, that the two bills requested by our Public Policy Committee were passed by the General Assembly and have already been signed into law by the Governor. Those bills affected real estate teams and the return of deposit money.

Below is a comprehensive summary of the most important legislation affecting REALTORS® during the legislative session.

AFFORDABLE HOUSING AND TAXES

HB 72 – Budget Reconciliation and Financing act oF 2011 – RecoRding FeesSTATUS: PASSED – Effective July 1, 2011 – July 1, 2015Increases the real estate recording fee from $20 to $40 for each recordable document.

HB 437 – Real PRoPeRty – sales oF new Homes – minimum VisitaBility FeatuResSTATUS: PASSED – Applies to any planned subdivision receiving preliminary plan approval on or after October 1, 2012Requires certain new subdivisions receiving preliminary plan approval on or after October 1, 2012 to offer consumers an option to purchase a “visitable” home. The law applies only to subdivisions of 11 or more single-family, detached units. To be “visitable,” a home must include a ground level entrance at least 36 inches in width and accessible to parking or a public right of way, with no vertical obstacles such as steps or curbs. A more burdensome visitability proposal opposed by MAR was defeated. HB 981 would have required at least 50% of the units in a subdivision of 5 or more to be built as “visitable” units.

HB 521/sB 328 – estates and tRusts – tRansFeRs – RecoRdation and tRansFeR taxesSTATUS: PASSED – Effective July 1, 2011Clarifies that transfer and recordation taxes may not be imposed on a mortgage or deed of trust that is transferred as part of an estate or trust to a beneficiary or a trust as long as there was no consideration. The bill provides a more uniform treatment of estate and trust property; some counties impose transfer and recordation taxes on the mortgage or deed of trust when property is transferred as part of the management of the estate or trust.

HB 603 – maRyland eneRgy administRation – clean eneRgy loan Payment PRogRamSTATUS: NOT PASSED Would have established a Clean Energy Loan Program to help fund energy efficiency and clean energy improvements for property owners. The bill would have allowed property owners to voluntarily enter into agreements that impose a property tax surcharge on their own property in order to repay the underlying loan costs.

HB 662/sB 648 – RenewaBle eneRgy suRcHaRge – Retail electRic customeRsSTATUS: DEFEATEDWould have charged electricity ratepayers a renewable energy surcharge if the ratepayer’s usage exceeded average energy usage by 25%. The bill also would have established a rebate against the electricity rate for ratepayers who choose renewable energy electric providers.

HB 695 – PRoPeRty tax – semiannual Payment FoR Residential PRoPeRtySTATUS: NOT PASSEDWould have extended the semi-annual payment of property taxes to non-owner occupied residential property.

HB 856/sB 332 – gas comPanies – inFRastRuctuRe RePlacement – suRcHaRgeSTATUS: DEFEATEDWould have imposed a monthly surcharge on residential and commercial gas customers to pay for gas infrastructure improvements.

HB 1064 – wateRsHed PRotection and RestoRation actSTATUS: NOT PASSEDWould have imposed a stormwater fee on all residential and commercial property to pay for stormwater infrastructure improve-ments. The legislation would have required local governments to impose the fee at a rate the local government determined. Residential owners would pay a flat rate and commercial owners would pay a rate based on their property’s impervious surface.

HB 1245 – RecoRdation tax and state tRansFeR tax – exemPtionsSTATUS: PASSED – Effective July 1, 2011Expands the class of intra-family real property transfers that are exempt from recordation and transfer taxes to grandparents or step-grandparents.

HB 1295 – PRoPeRty tax – cHaRteR counties – limitsSTATUS: NOT PASSEDWould have allowed the five charter counties with property tax limitations to increase property taxes in excess of the Charter limits by a two-thirds vote of their county council. The five counties are Anne Arundel, Montgomery, Prince George’s, Talbot, and Wicomico.

HB 1352 – local scHool BoaRds – autHoRity to imPose a PRoPeRty taxSTATUS: NOT PASSEDWould have given local school boards the authority to levy property taxes to pay for the operation of local schools. If a school board exercised such authority, a county government would be required to reduce the county property tax by an amount equal to the new tax imposed by the school board.

sB 304 – RenewaBle eneRgy suRcHaRge – Retail Residential electRic customeRsSTATUS: DEFEATEDWould have required electric companies to impose a surcharge on residential ratepayers if their electricity consumption exceeds 1000 kilowatt hours per month. The ratepayer would be entitled to a rebate of some of the cost by using electricity generated by renewable energy sources.

sB 316 – PRoPeRty tax – cHaRteR counties – education FundingSTATUS: NOT PASSEDWould have allowed the five charter counties with property tax limitations to increase property taxes in excess of the Charter limits to fund the local school budget. If a county exercised this authority, it would be prohibited from reducing education funding from other sources. Those five counties are Anne Arundel, Montgomery, Prince George’s, Talbot, and Wicomico.

“Checkers or Wreckers” is a familiar

NASCAR phrase that means a

driver is either going to come in

first or crash trying. It’s also a

pretty good description of the

legislative session just

ended for Maryland

REALTORS®, as we geared

up to oppose one of the

Governor’s key initiatives: a

prohibition on new septic

systems in subdivisions of 5

or more units. MAR’s

leadership was committed

to either stopping this

proposal outright or

crash trying.

Fortunately for us this

year, it was the

checkered flag.


REAL ESTATE BROKERAGE AND CONTRACTS

*HB 102 – Financial institutions – moRtgage loan oRiginatoRs – PRoHiBited actsSTATUS: PASSED – Effective October 1, 2011Prohibits a mortgage loan originator from making a payment, threat, or promise in order to improperly influence the independent judgment of a real estate appraiser. However, HB 102 still permits a mortgage loan originator to request the appraiser to: consider additional information; provide further substantiation of the appraiser’s conclusions; and correct errors. Payment may also be withheld if the appraisal is subject to a legal or administrative action.

HB 128 – consumeR law – maRyland consumeR PRotection act – scoPeSTATUS: PASSED – Effective October 1, 2011Adds merchants whose business includes paying off consumer debt in connection with consumer goods and realty to the purview of the unfair or deceptive trade practices act if the merchant is purchasing or offering to purchase consumer goods or realty.

HB 289/sB 410 – state HigHway administRation – unautHoRized signs on HigHway RigHts-oF-waySTATUS: PASSED – Effective October 1, 2011Authorizes local governments (on behalf of the state) to enforce the current prohibition against signs on state highway rights-of-way through an administrative fine and sign collection. MAR worked with the sponsor of the legislation to lower the original fine from $100 to $25 per sign, and to require local jurisdictions to forego collecting fines for the first three months so that individuals may be educated about the new requirement.

HB 357/sB 234 – state Real estate commission – sunset extension and PRogRam eValuationSTATUS: NOT PASSEDWould have reauthorized the Maryland Real Estate Commission starting in July 2012. Would have increased the maximum guarantee fund payment from $25,000 to $50,000. Would have clarified that associate brokers and licensees must submit and change their licenses when the address of the real estate office changes. Would have increased the dishonored check fee from $25 to $35. Would have required the Real

Estate Commission to issue a report detailing foreclosures associated with transactions by a licensee. Note: House and Senate conferees were not able to agree on additional amendments in the closing hours of the 2011 General Assembly Session. Under existing law, the Commission continues to operate until July 2012. Legislation to extend the Commission’s sunset date will be considered next year.

HB 379/sB 334 – Real PRoPeRty – dePosits on new Homes – escRow accountsSTATUS: PASSED – Effective July 1, 2011Clarifies that a builder must open an escrow account prior to construction of a new residential unit, and maintain the funds in the account until the home is completed. Clarifies that money deposited in an escrow account to pay a construction draw schedule may be released in accordance with the draw schedule. The bill addresses ambiguities in current law due to a recent court case.

*HB 509 – Real PRoPeRty – moRtgages – enFoRcementSTATUS: PASSED – Effective April 12, 2011Authorizes the Commissioner of Financial Regulation to enforce the foreclosure and mortgage fraud laws in Maryland. Clarifies that the Commission may use certain investigative authority as well as compel violators of the law to make restitution to victims.

HB 713/HB 838/sB 530 – Residential PRoPeRty tax disclaimeR act STATUS: NOT PASSEDAs originally introduced in past years, this legislation would have required all real estate advertisements to contain the estimated property tax payment of a property for sale. MAR opposed that legislation, but agreed to amendments that would have provided a notice to the buyer in the Seller Property Condition Disclosure/Disclaimer form as an alternative. The notice to the buyer states that the buyer’s tax bill may be significantly different from the seller’s current bill, and that buyers should contact local government to estimate their future tax obligation. The legislation passed the House but was not voted in the Senate Committee.

HB 719/sB 606 – Residential PRoPeRty sales – disclosuRe oF utility consumPtionSTATUS: NOT PASSEDAlthough MAR was opposed to the bill as originally conceived, we agreed to a compromise with the Maryland Energy Administration that would have required utility information to be provided to buyers visiting a property.

*HB 944 – Financial institutions – moRtgage lendeRs and moRtgage loan oRiginatoRsSTATUS: PASSED – Effective October 1, 2011Requires a person who is exempt from State Mortgage Licensing requirements to register with the Nationwide Mortgage Licensing System and Registry (NMLS) if the person employs a licensed mortgage loan originator. This change conforms state law with new requirements in the federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE ACT).

HB 1038 – commeRcial law – Residential moRtgage loans – escRow amountsSTATUS: PASSED – Effective October 1, 2011Prohibits a lender from charging interest for up to one year on the amount of additional escrow money a lender requires a borrower to pay after establishment of the original escrow.

*HB 1041/sB 256 – Business Regulation – deFinition oF HomeBuildeRSTATUS: PASSED – Effective October 1, 2011Requires developers to register as a homebuilder if the developer enters into contracts with consumers to provide or construct homes.

*HB 1049 – Real estate BRokeRs – intRacomPany agentsSTATUS: PASSED – Effective October 1, 2011Authorizes a broker to appoint another licensee in the office to designate the intracompany agents working for the same real estate team. The designee appointed by the broker may not be a member of that real estate team. Prior to this change, the broker of record was the only licensee authorized to designate the intracompany agents for real estate teams.


*HB 1109 – Real PRoPeRty – Rescission oF sales contRacts – RetuRn oF dePositsSTATUS: PASSED – Effective October 1, 2011Clarifies that brokers must follow the current rules under 17-505 of the Business Occupations and Professions Article for returning deposit money when state law permits a buyer to rescind a contract of sale. To return deposit money, 17-505 requires: an agreement of the parties; an interpleader action; or a determination by the broker of who should receive the money and notification to the parties of the decision. This process must be followed even if the property is subject to a condo, HOA or Coop regime.

HB 1181/sB 658 – state commission oF Real estate aPPRaiseRs and Home insPectoRs – sPecial Fund and RegistRation and Regulation oF Real estate aPPRaisal management comPaniesSTATUS: PASSED – Effective July 1, 2011Requires Appraisal Management Companies (AMCs) to register with the State Commission of Real Estate Appraisers and Home Inspectors. Institutes standards that the AMCs must meet when working with appraisers.

HB 1309 – Real estate aPPRaiseRs – Valuation aPPRaisals – RequiRementsSTATUS: NOT PASSEDWould have prohibited the use of distressed sales when preparing a property appraisal.

sB 210 – Real estate settlements – Paying oR ReceiVing consideRation – PenaltiesSTATUS: NOT PASSEDWould have given clearer authority to the real estate commission to take action against licensees violating kickback

prohibitions. Would have given authority to other licensing agencies (e.g. appraisers) to take action against their licensees as well.

sB 285 – state Real estate commission – Reinstatement oF licenses and inactiVe statusSTATUS: PASSED – Effective October 1, 2011Requires real estate licensees on inactive status to reinstate their full license after three years of inactive status rather than four years. Requires licensees on inactive status to keep up with continuing education requirements before renewing their inactive status after two years. MAR requested an amendment so that the bill would not apply to licensees going on inactive status until on or after October 1, 2011.

sB 918 – Real PRoPeRty – RecoRdation oF deed – FoReclosuRe salesSTATUS: NOT PASSEDWould have required a deed from a foreclosure sale to be recorded within 60 days after the date of the final order of ratification.

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COMMON OWNERSHIP COMMUNITIES

HB 592/HB 942 – common inteRest community manageRs – licensing and RegulationSTATUS: NOT PASSEDWould have required property managers for common interest communities (e.g., condos and HOAs) to be licensed and regulated by the Maryland Department of Labor, Licensing and Regulation. The bill excluded time share communities or completely commercial properties. There were other proposals as well that would have only required registration rather than a full license.

HB 827/sB 548 – condominium and HomeowneRs associations – assessments – incRease necessaRy to meet goVeRnment RequiRementsSTATUS: DEFEATEDWould have authorized condo and HOA association Boards of Directors to increase association assessments without the approval of the association members to pay for costs imposed upon the association by government since the adoption of the last annual budget.

*HB 679 – Real PRoPeRty – condominiums – amendment to Bylaws to RequiRe unit insuRance coVeRageSTATUS: PASSED – Effective October 1, 2011Authorizes condominiums to amend their bylaws by a simple majority (51%) of the council of unit owners to require unit owners to maintain individual homeowner insurance policies.

HB 1246/sB 946 – condominiums and HomeowneR associations – PRioRity oF liensSTATUS: PASSED – Effective October 1, 2011Establishes that a condo or HOA has a limited priority lien over all other liens except those imposed by government. The lien is limited to 4 months of unpaid regular assessments for the common expenses or a maximum of $1,200. The priority lien cannot include special assessments, attorney fees, late charges, interest and other charges beyond the normal assessment. If a lender requests specific information regarding the priority lien, the condo or HOA association must provide that information within 30 days of filing the lien statement in the land records.

LAND-USE, PROPERTY RIGHTS, AND THE

ENVIRONMENTHB 57/sB 539 – enViRonment – Bay RestoRation Fund – autHoRized usesSTATUS: PASSED – Effective October 1, 2011Authorizes the use of Bay Restoration Fund grants to pay some of the cost of connecting properties to sewer. Currently, grant money may only be used to pay for septic system upgrades. This bill allows grants for a sewer connection in instances when a septic upgrade would be more expensive or not feasible.

HB 177/sB 160 – enViRonment – on-site sewage disPosal systems – nitRogen RemoValSTATUS: NOT PASSEDWould have required all new residential construction located in the Chesapeake or Atlantic Coastal Bay Watershed in Maryland to use Best-Available-Technology (BAT) if the property relies on a septic system. BAT systems are very expensive and would significantly increase the cost of most affordable housing. This bill will be studied over the summer along with other environmental issues affecting the Bay.

HB 1107/sB 846 – sustainaBle gRowtH and agRicultuRal PReseRVation act oF 2011STATUS: NOT PASSEDWould have prohibited septic systems in all new residential subdivisions of 5 or more lots in Maryland. The bill would have permitted certain community systems to be used for the affected subdivisions. Because the cost of community systems or connecting to sewer would be too much for many subdivisions, this legislation would have undermined many county growth plans. This bill will be studied over the summer along with other environmental issues impacting the Bay.

sB 873 – PRiVate PRoPeRty RigHts – RegulatoRy inFRingement – comPensationSTATUS: NOT PASSEDWould have provided property owners with a cause of action if regulations promulgated by state agencies diminished a property’s value. The state agencies would be liable for compensation only if they could not demonstrate that their action protected public safety or was necessary to comply with federal law.

PROPERTY MANAGEMENT

HB 179/sB 111 – enViRonment – Recycling – aPaRtment Buildings oR condominiumsSTATUS: DEFEATEDAs originally proposed, this legislation would have required apartment buildings and condominiums to offer recycling to their occupants regardless of whether the county provided recycling to multi-unit buildings. However, as amended, the legislation would have required apartments and condo buildings to keep records on the amount and type of recycled materials.

*HB 653/sB 457 – lawyeRs – BaR admission RequiRement – excePtion FoR Rent escRow PRoceedingsSTATUS: PASSED – Effective October 1, 2011Allows non-attorneys to represent landlords or tenants in rent escrow cases. Occasionally, proper ty managers representing owners in court on a summary ejectment proceeding find themselves also engaged in a rent escrow action.

HB 670/sB 620 – Real PRoPeRty – RetaliatoRy actions – landloRds and moBile Home PaRk owneRsSTATUS: PASSED – Effective October 1, 2011Establishes a different standard for a tenant to prove a retaliatory action by a landlord. Under current law, a tenant can only prove a retaliatory action if the “sole” reason for the action was to target the tenant. Landlord groups crafted a compromise with tenant groups to permit tenant actions to move forward in a limited way with a cap on damages of 3 months and court costs.

HB 842/sB 516 – FoReclosed Residential PRoPeRty – tenants – collection oF Rent Payments – PRioR noticeSTATUS: PASSED – Effective July 1, 2011Requires a purchaser of a foreclosed property with a bona fide tenant to notify the tenant about the purchaser’s ownership so the tenant can pay the rent. A tenant is not required to pay any rent until the tenant receives the notice. MAR successfully sought [SUCCESSFULLY?] an amendment to give the new purchaser 15 days to notify the tenant before the purchaser foregoes any claim on the rent.


HB 902/HB 928/sB 643 – Human Relations – Housing discRimination – souRce oF incomeSTATUS: DEFEATEDTwo bills were introduced to make “source of income” a protected class under Maryland law. MAR supported one (HB 928) and opposed the other (HB 902). HB 902 would have included all sources of income as a protected class, even government vouchers such as Section 8. HB 928 would have made all sources of income except vouchers a protected “source of income.”

HB 917/HB 284/sB 429/sB 669 – Real PRoPeRty – Residential leases – inteRest on secuRity dePositsSTATUS: NOT PASSEDMany bills were introduced to address this issue, but HB 917 was the only one of the bills to advance. It would have required landlords to return deposits with an interest rate of 1.5% or a rate equal to the U.S. Treasury Daily Yield Curve Rate, whichever is higher. The House passed HB 917, but the Senate did not take action on the bill.

HB 1004 – Real PRoPeRty – landloRd and tenant – BReacH oF leaseSTATUS: NOT PASSEDWould have allowed landlords to use a faster process to file an eviction case against a tenant engaged in disorderly conduct which disrupts other tenants.

HB 1033/sB 840 – enViRonment – Reducing lead Risk in Housing – Risk Reduction standaRdsSTATUS: PASSED – Effective January 1, 2012Requires that landlords subject to the Maryland Lead Poisoning Prevention Program (LPPP) use a dust test when verifying whether a property is in compliance with the program. The current law allows a landlord to conduct either a lead dust test or perform certain risk reduction acts. The original version of this bill would have required a landlord to perform both a dust test and the risk reduction steps. The bill also requests the Maryland Department of the Environment to conduct a study regarding lead poisoning in owner-occupied properties and rental properties not subject to the current law.

HB 1254 – enViRonment – Reduction oF lead Risk in Housing – RegistRation and FeesSTATUS: PASSED – Effective July 1, 2011Authorizes the Maryland Department of the Environment (MDE) to establish a rolling

payment schedule for landlords participating in the Lead Poisoning Prevention Program (LPPP). Under current law, all landlords are required to pay by December 31. For land-lords with multi-unit buildings, a single pay-ment in December is a significant cost. MDE is seeking to establish a schedule that will allow the Department to spread its work out as well as a schedule that allows landlords to spread out their payment.

sB 503 – FoReclosuRe PuRcHaseR and tenant – eVictions – tenant’s RigHt to Reclaim PeRsonal PRoPeRtySTATUS: NOT PASSEDWould have given tenants an extra 3 days to remove property from a unit after the day of eviction.

COMMERCIALHB 420 – RecoRdation tax – indemnity moRtgagesSTATUS: NOT PASSEDWould have required recordation taxes to be paid on indemnity mortgages for property when the mortgage is $5 million or more. The intent of the legislation was to capture transactions that were using indemnity mortgages as a way to avoid paying the recordation tax.

HB 463 – PRoPeRty tax – semiannual Payment scHedule – Business PRoPeRtySTATUS: PASSED – Effective to tax years starting after June 30, 2012Expands the number of businesses that may pay property taxes under a semi-annual schedule. Under the existing law, only a small business assigned a commercial use code by the State Department of Assessments and Taxation and whose annual property taxes does not exceed $50,000 may pay property taxes on a semi-annual schedule. This bill allows any business assigned a commercial use code and paying property taxes up to $100,000 to pay taxes semi-annually.

*HB 601 – sustainaBle communities tax cRedit PRogRam – eligiBilitySTATUS: PASSED – Effective July 1, 2011Clarifies that the Sustainable Communities Tax Credit may be used for commercial properties that have already begun rehabilitation work, if the rehabilitation work had already been approved under the Federal Historic Tax Credit.

HB 718/sB 261 – Real PRoPeRty – commeRcial Buildings – disclosuResSTATUS: NOT PASSEDWould have required certain commercial building owners to disclose to prospective buyers and lessees the energy performance of the building or rental space. MAR was particularly concerned over provisions that would have given buyers and lessees the unconditional right to rescind a contract for up to 60 days after taking possession.

HB 976 – disPlaced Building seRVice woRkeRs PRotection actSTATUS: DEFEATEDWould have required companies (like rental properties) to keep employed the workers of a contractor working for the rental property for at least 90 days after the contractor was terminated. After the 90 day period, the new contractor hired by the rental property would be required to use the workers from the terminated contractor if there was no cause to fire those workers during the 90 day transition period.

HB 1050 – constRuction PeRmits – exPiRation datesSTATUS: NOT PASSEDWould have extended the duration of development and construction permits approved by state, local and municipal governments. The bill applied only to permits approved on or after January 1, 2008.

MISCELLANEOUS*sB 182 – maRyland HealtH BeneFit excHange act oF 2011STATUS: PASSED – Effective June 1, 2011Provides the initial framework of the Health Benefit Exchanges that will become available to all Marylanders in 2014. These state exchanges are intended to provide greater choice and affordability in health insurance particularly to individuals like independent contractors.

* Indicates a bill that has been signed by the Governor. All other bills listed as passed await the Governor’s signature to take effect.

“Defeated” indicates bills that were voted down. “Not Passed” indicates bills did not receive a vote.

Economic ForecastAnirban Basu

With the first quarter now over, many of the principal economic concerns

coming into the year have been largely addressed. Demand on many

levels is building. Retail sales are up 7.1 percent on a year-over-year

basis through March. Moody’s Economy.com presently predicts that

overall consumption will expand 3.3 percent in 2011, with motor vehicle

sales rising 13.6 percent. Fixed investment is predicted to rise nearly

9.6 percent this year, with investment in equipment up 10.3 percent.

economy now enjoying selF-sustaining momentumComing into 2011, economists remained largely fixated on the

inadequacy of demand for labor, housing, commercial real estate and

other aspects of economic life. Economists have been busily pouring

over reams of data regarding senior bank loan officer attitudes,

consumer credit availability and other indicators of a thaw in the credit

market. The conventional wisdom has been that until banks begin

lending more aggressively, the growth of the U.S. economy will continue

to be lackluster and the recovery that began in mid-2009 will

remain fragile.

There’s sTill PlenTy of reason for ConCern,but the Reasonshave Changed

Focus sHiFts FRom gRowtH to inFlation


Foreign demand has also been strong. Despite a sea of economic

troubles in Portugal, Greece and Ireland, a natural disaster in Japan and

political uncertainty engulfing the Ivory Coast, Tunisia, Nigeria, Egypt,

Libya, Yemen, Afghanistan, Bahrain and Pakistan, the world is

increasingly looking to America for output of goods. That is very

encouraging. Since January 2010, U.S. exports are up 6.9 percent on

a seasonally adjusted basis and 18.9 percent on a not seasonally

adjusted basis, with sales to China, India and Brazil up 17.3 percent,

42.2 percent and 7.4 percent, respectively.

The accompanying increase in production has

led to the emergence of a new trend in Amer-

ica: employment growth in manufacturing.

For eight months running, the number of

manufacturing jobs is up on a year-over-year

basis. Manufacturing employment nationally

rose by 29,000 jobs in April. Since reaching

an employment low in December 2009, man-

ufacturing has added 250,000 jobs, including

141,000 in 2011. Unfortunately, the number

of manufacturing jobs in Maryland has been

declining during this period.

Employment growth has generally been

accelerating. Nonfarm payroll employment

increased by 244,000 in April according to the

Bureau of Labor Statistics (BLS), though the

nation’s unemployment ticked up to 9.0

percent. The number of private sector jobs

expanded to 268,000 in April, the best

monthly performance since February 2006.

BLS has observed job gains in professional

and business services, health care, leisure

and hospitality and mining, among other

industries. Employment in retail trade rose by

57,000 jobs in April, with department stores

adding 27,000 of those jobs. In other words,

consumer spending continues to help drive

economic expansion despite all the negative

news that households encounter on a daily

basis. However, the number of long-term

unemployed (those jobless for 27 weeks or

more) totaled 5.8 million in April, and their

share of the unemployed continues high, at

43.4 percent.

Generally positive economic news has allowed equity markets to bounce

higher, too. At the beginning of the year, the Dow Jones Industrial

Average stood at 11,577. As of this writing (May 9th intra-day), the Dow

stands at over 12,700 (translating into a gain of nearly 10 percent for

the year). That performance is simply remarkable given the headwinds

that have emerged in recent months, including the three-legged tragedy

in Japan, ongoing sovereign debt issues in Europe, civil war in Libya and

oil prices now above $100 a barrel.

exHiBit 1. u.s. exPoRt gRowtH, FeBRuaRy 2001 tHRougH FeBRuaRy 2011

Source: Bureau of Economic Analysis

exHiBit 2. consumeR PRice index gRowtH, maRcH 2001 tHRougH maRcH 2011

Source: Bureau of Labor Statistics



economic forecast continued from page 21

inFlationaRy PRessuRes BuildingFor months, we have been suggesting that it is still too soon to tell

whether inflation will become problematic. Indeed, recent core inflation

data (all components except food and energy) indicate that inflation

remains mild. Through February, core inflation was running at a 0.2

percent monthly rate and 1.1 percent annual rate in America despite

increases in medical care expenses (up 0.4% for the month and 2.9

percent year-over-year).

But inflationary buzzards have begun to circle. There are a number of

factors that collectively conspire to support the emerging view that at

some point later this year or in 2012 the U.S. Federal Reserve will begin

to find it necessary to constrain inflationary pressures by reducing

money supply growth and increasing short-term rates.

While much of the recent focus has been upon food and energy prices,

commodity prices generally have been marching higher. For instance,

steel and iron producer prices are up 16.8 percent through February on

a year-over-year basis. Gold stands at about $1,500 a troy ounce, up

approximately 30 percent from a year ago. Cotton prices recently set a

record at well above $2 a pound. Certain non-commodity prices have

also been drifting higher, including airline fares, which are up 12.3

percent year-over-year through February.

Import prices are also up, with a growing number of nations reporting

widening inflationary issues. In India, inflation is up 18.9 percent year-

to-date through February. In China, the corresponding statistic is 10.0

percent. In Mexico, consumer prices are up 10.8 percent through

March. Presumably, this inflation

will continue to be exported to

America in the form of higher priced

clothing, food and household items.

Thus far, many prices have been

constrained due to productivity

gains and the inability of producers

to pass along input price increases

(including those associated with oil

prices) to consumers. But with the

economy steadily improving,

consumers are likely to face rising

prices for many goods and services,

and that will ultimately prompt the

Federal Reserve to begin chipping

away at the massive monetary accommodation it has been providing to

the economy (e.g., low interest rates, money supply creation) in the wake

of the financial crisis that gripped us in September of 2008 and the

accompanying Great Recession.

If interest rates rise as expected, the housing market’s belated recovery

would be delayed even further. REALTORS® and other housing industry

stakeholders should pay close attention to inflation numbers over the

summer. If rising prices begin to characterize a growing share of the

nation’s economy (e.g., restaurant prices, hotel rooms, apartment rent),

the Federal Reserve will be forced to act more quickly and perhaps in

grander fashion with respect to contracting money supply and that would

not be good for home sales.

wHat is going on in maRyland?

WE LiTErALLy DON’T KNOWThe title of this quarter’s piece sounds as if we are about to go off on a

rant. Actually, that’s not the case at all. It’s just that the data

characterizing economic activity in Maryland has become so volatile that

one’s view of the state’s economy is likely to change like the weather –

frequently.

Coming into 2011, establishment data from the Bureau of Labor

Statistics (BLS) indicated that the Free State added 26,000 jobs in 2010

or 1.0 percent to job totals. That represented reasonably solid

performance and corresponded to the view that Maryland has been

outperforming the nation along arguably the most important dimension

– job growth.

But on March 25, we learned that the

BLS had radically revised Maryland job

growth data. After the revision,

Maryland’s job growth for 2010 stood at

11,300 jobs, or 0.5 percent. That

means that Maryland has been

underperforming the nation, which

seems counter-intuitive for a number of

reasons, including base realignment,

cyber-security, overall federal spending

and overall federal spending growth.

if inTeresT raTes rise as exPeCTed, The housing

markeT’s belaTed reCovery would be delayed even furTher. realTors® and

oTher housing indusTry sTakeholders should Pay

Close aTTenTion To inflaTion numbers over The summer.



Even other Maryland employment data prove somewhat contradictory.

For instance, the household survey upon which unemployment rates are

based indicates that Maryland’s labor market remains considerably

healthier than the nation’s overall. The state’s unemployment rate

presently stands at 6.9 percent, the 13th lowest in the nation and

roughly 2 full percentage points below the national average. All of this

leaves us economists somewhat puzzled. Hopefully, future jobs data will

be more consistent and permit simpler interpretation.

wHat tHis means FoR HousingThe recipe for housing market recovery is in place. The current

economic environment is characterized by motivated sellers, plentiful

choice, diminished prices, job growth and favorable mortgage rates.

Data characterizing consumer behavior suggest that households

have become increasingly comfortable with the notion of spending,

though gasoline prices have clearly dented a certain fraction of U.S.

consumer purchasing power.

All of this suggests that the housing market should be in a period of

recovery now despite the overhang of foreclosures and shadow

inventory. But that is largely not the case, including here in

Maryland. Between March 2010 and March 2011, unit sales in

Maryland declined 6.6 percent, including, for instance, a 10 percent

decline in Talbot County, a 15 percent decline in Howard County

and a 14 percent decline in Baltimore County. These three counties

are highly diverse in terms of price points and the demographic

profile of buyers. The fact that each of these three counties

experienced unit sales declines over the past year reflects a still

broadly weak housing market.

Of course, these three jurisdictions were hardly alone. Of Maryland’s

24 jurisdictions, 14 experienced a decline in sales volume over the

past year. Sales gains were observed, however, in a number of

jurisdictions affected directly or indirectly by base realignment,

including in Harford County (+15%), Cecil County (+2%) and Calvert

County (+51%).

Those who monitor the housing market will also note that comparing

year over year sales totals for March is at least partially an exercise

in comparing apples and oranges. Last year, federal tax credits

were still affecting the housing market. Today, the housing market

is required to continue its track of recovery in the absence of tax

credits. Nonetheless, even markets that are generally not associated

with a large proportion of first-time buyers have experienced a

downturn in sales volume over the past year (e.g., Allegany County,

down 21 percent in unit sales year-over-year).

Average and median price data also reflect a market that remains largely

in disequilibrium and impacted by the specter of large numbers of

distressed sales. For instance, in Baltimore City, unit sales volume is up

3.2 percent year-over-year despite the absence of first-time and move-up

buyer tax credits, but median sales price has swooned from $109,500

a year ago to just $52,000 in March 2011. This 52.5 percent decline is

an indication of just how profound the impact of foreclosures and short

sales is in that market. In Prince George’s County, a jurisdiction also

disproportionately affected by distressed sales, has experienced a

decline in median sales prices of 19 percent year-over year.

unemPloyment Rates By maRyland counties, maRcH 2011

Source: Bureau of Labor Statistics

COUNTY: March 2010 March 2011

Howard County, MD 5.5 5.1

Montgomery County, MD 5.8 5.0

Calvert County, MD 6.4 5.7

St. Mary’s County, MD 6.5 5.7

Charles County, MD 6.4 5.8

Frederick County, MD 7.0 6.3

Anne Arundel County, MD 7.1 6.4

Carroll County, MD 7.3 6.4

Prince George’s County, MD 7.7 6.8

Queen Anne’s County, MD 8.0 7.1

Harford County, MD 8.1 7.2

Baltimore County, MD 8.0 7.6

Kent County, MD 9.1 7.6

Talbot County, MD 8.8 7.9

Garrett County, MD 9.6 8.0

Wicomico County, MD 9.5 8.4

Allegany County, MD 9.8 8.9

Caroline County, MD 10.5 8.9

Cecil County, MD 10.2 9.3

Baltimore City, MD 10.6 9.9

Washington County, MD 11.1 9.9

Somerset County, MD 10.8 10.1

Dorchester County, MD 11.7 10.9

Worcester County, MD 16.5 15.4

MARYLAND 7.7 7.0

UNITED STATES 10.2 9.2



Fully 19 of Maryland’s 24 jurisdictions have experienced a decline in

median sales price over the past year, though Baltimore City’s price

decline has been the most severe. With respect to average sales price,

15 of Maryland’s jurisdictions have experienced a year-over-year decline.

Average price statewide is down 2.2 percent over the past year, falling

from $271,961 in March 2010 to $265,883 one year later.

This is not to suggest that there are no signs of recovery. It is simply that

the marketplace is healing very slowly, in part because many prospective

buyers have chosen to embrace a wait and see attitude in the context of

declining prices. One of the key indicators of home prices nationally is

the S&P/Case-Shiller Home Price 20-City Composite Index. In February,

the 20-City Composite was down 3.3 percent from February 2010 levels,

with Washington, D.C. the only market to post a year-over-year gain, an

annual growth rate of 2.7 percent. The 20-City Composite is now

virtually back to its April 2009 lowest value and the 10-City Composite is

just 1.5 percent above its all-time low. The economics of deflation have

apparently convinced many buyers that they can afford to wait. There

may also be a cultural shift taking place in America, with a greater

fraction of households convinced that for now renting is more

advantageous than ownership status.

Despite these considerations and the absence of federal tax credits,

pending unit sales in March were up 9.3 percent from a year ago and

the active inventory of unsold homes has declined from 37,037 last

March to 36,468 this March. In other words, the recovery in the broader

economy is gradually permeating the state’s housing market. With

economic leading indicators generally suggesting that further

improvement is ahead for the broader economy, the housing market is

positioned for ongoing improvement through the summer and beyond.

However, the marketplace won’t truly become dynamic until the overhang

of excess inventory, including in the form of distressed properties, is

more meaningfully whittled away. Once that occurs, prices will begin to

rise again, setting the stage for greater urgency among prospective

home buyers.

Anirban basu, sage Policy group, Inc.

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.

Join the more than 96,600 experienced sales professionals at Coldwell Banker who have Discovered the Difference

careerscb.com • 1-866-559-2272

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~ Kellie Langley, Sales Associate

““Coldwell Banker provides me with today’s cutting edge tools to harness the power of the internet. I can do more for my clients as a Coldwell Banker agent and that is what matters most to me…my clients needs always come first.

My office is like a family. We care about each other and the needs of the communities we serve. Through the Cares Foundation and charitable giving programs, Coldwell Banker agents have the ability to help others and that is really important to me.

~ Nancy Hulsman, Sales Associate

If you are ready to challenge your limits, your thinking and yourself, then Coldwell Banker is the place for you.

““I enjoy working with Coldwell Banker Residential Brokerage because of the very strong world-wide name recognition. Coldwell Banker provides us with the latest tools and technology to help us assist our clients and customers in this complex market today. They give us the infrastructure needed to get the job done! This is a win-win situation for everyone!

~ Cindy Spieczny, Sales Associate

Use your mobile device to learn more about Coldwell Banker

©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.


Maryland Association of REALTORS®

2011 AnnuAl ConferenCe

And TrAdeshow

www.mdrealtor.org/Events/2011AnnualConference.aspx

UNDER ‘PROGRAMS AND EDUCATION’ TAB

SPECIAL HOTEL RATES FOR CONFERENCE ATTENDEES STARTING at $49 PER NIGHT, PLUS TAX

go To:www.mdrealtor.org

YPN Networking Event After the Grand Opening

Cocktail Party at the Convention Center. This event is geared toward REALTORS®

40 and under. $10 pre-register, $20 at the door.

GREAT Networking Opportunities during the Grand Opening

Cocktail Party on Monday PM and the Happy Hour

with Exhibitors on Tuesday PM

Keynote presenterSteve Harney will present “Keeping Current Matters”

on Monday during Lunch

regisTer online

new This yeAr!

September 12–14, 2011Roland E. Powell Convention Center

Ocean City, Maryland


regisTer online

MONDAY, SEPTEMBER 127:30 AM Registration Opens

8 AM NAR Directors Breakfast (NAR Directors only)

8–11:15 AM MREC Supervision Brokers, Branch Office Managers & Team Leaders Al Monshower, Esq. (3 hours, Broker Supervision, Course #617-1604)

8:30–11:45 AM MREC Agency—Residential Colin McGowan (3 hours, Agency, Course #616-1604)

8:30–11:45 AM Ethics Tom Drechsler (3 hours, Ethics CE Pending)

8:30–11:45 AM Real Estate Consulting Essentials—Part I Syd Machat (3 hours, Professional Enhancement CE pending)

8:45 AM–12 PM Social Marketing: The Money Magnet Gee Dunsten

11:30 AM MAR Board of Directors Meeting & President & Shining Star Awards Presentation

12 NOON Light Lunch & KEYNOTE Steve Harney

1:30–3 PM Risk Reduction for Brokers/Managers Al Monshower, Esq. (1.5 hours Professional Enhancement CE pending)

2–5:15 PM Legal & Legislative Update Charles A. Kasky, Esq. (3 hours, Legal & Legislative CE pending)

2–5:15 PM Real Estate Consulting Essentials—Part II Syd Machat (3 hours Professional Enhancement CE pending)

2–5:15 PM I’m Not Making Money Using Facebook…So What’s the “Secret Sauce?” Gee Dunsten

2:30–4 PM Pricing to Sell—How to Convince the Seller Steve Harney

3–4 PM Tune Up with MRIS MRIS

4–5:30 PM Commission Update Kathie Connelly (1.5 hours, Legal/Legislative CE pending) Executive Director Maryland Real Estate Commission

5–7 PM Grand Opening Cocktail Party plus Tradeshow Learning Labs

6:30–7:30 PM NEW THIS YEAR Young Professionals Network Event (YPN) $$$

TUESDAY, SEPTEMBER 137:30 AM Registration Opens

8:30–10 AM Fair Housing Deborah Hutson (1.5 hours, Fair Housing CE pending)

8:30–11:45 AM MREC Agency—Residential (REPEAT) Charles A. Kasky, Esq. (3 hours, Agency, Course #616-1604)

8:45 AM–12 PM Contract Analysis Tom Drechsler (3 hours, Professional Enhancement CE pending)

10:30–11:30 AM Tune Up with MRIS (REPEAT) MRIS

10:30 AM–12 PM Real Estate Tax Law Update Linda DeMarlor (1.5 hours Professional Enhancement CE pending)

10:30 AM–12 PM The New Interactive Web Amy Chorew (1.5 hours, Technology CE pending)

10:30 AM–12 PM OOOPS! Keeping Risks Under Control Allison Mooney (1.5 hours, Professional Enhancement CE pending)

2–3:30 PM Fair Housing (REPEAT) Deborah Hutson (1.5 hours, Fair Housing CE pending)

2–3:30 PM Durable Listing Practices Allison Mooney (1.5 hours, Professional Enhancement CE pending)

monday, September 12HIGHLIGHtS

8–11:15 AMMREC Supervision Brokers, Branch Office Managers & Team Leaders

Brokers & Office Managers only – MREC Supervision presented by Al Monshower. Register early. Seating is limited.

2:30–4 PMPricing to Sell — How to Convince the Sellerwith Steve Harney

Use current trends to your advantage to educate and inform sellers on pricing strategy.

tueSday, September 13HIGHLIGHtS

10:30 AM–12 PMThe New Interactive Web

Using the latest technology tools, Amy Chorew will show you how to successfully manage real estate transactions.


Diamonds

TUESDAY, SEPTEMBER 13 CONTINUED

2–5:15 PM Legal & Legislative Update (REPEAT) Charles A. Kasky, Esq. (3 hours, Legal & Legislative CE pending)

2–5:15 PM Raising the Real Estate Professional Bar Frank Serio (3 hours, Professional Enhancement CE pending)

2–5:30 PM Staying Connected with Today’s Consumer Amy Cherow (3 hours, Technology CE pending)

3–4 PM Tune Up with MRIS (REPEAT) MRIS

4–5:30 PM Decoding the Real Estate Blueprint…Discover the Systems for Success Koki Adasi-Efuya

4–5:30 PM Financial Planning Linda DeMarlor

4:30–6:30 PM Happy Hour with Exhibitors

WEDNESDAY, SEPTEMBER 148 AM Registration Opens

8:30–11:45 AM At Home with Diversity Barbara Fairfield (6 hours, Professional Enhancement CE pending)

8:30–11:45 AM CRS 112—Guiding the Buyer in the Distressed Property Market Frank Serio (6 hours, Professional Enhancement CE pending)

8:30–11:45 AM e-Pro® Amy Cherow (3 hours, Technology CE pending)

8:30–11:45 AM Ethics (REPEAT) Deborah Hutson (3 hours, Ethics CE pending)

8:30–11:45 AM Legal Hot Topics Charles A. Kasky, Esq. (3 hours, Legal & Legislative CE pending)

9–10:30 AM Taking the HYSTERICAL out of Historic Homes Steven Showalter (1.5 hours, Professional Enhancement CE pending)

9–11:15 AM WHC—Bridging the Gap between Availability and Affordability Steve Pearson (2 hours, Professional Enhancement, Course #615-1604)

1–3:15 PM WHC—Federal Programs and National Initiatives Steve Pearson (2 hours, Professional Enhancement, Course #613-1604)

1–5:30 PM CRS 112—Guiding the Buyer in the Distressed Property Market (continued) Frank Serio

1–5:30 PM At Home with Diversity (continued) Barbara Fairfield

1–5:30 PM e-Pro® (continued) Amy Cherow

3:30–5:45 PM WHC—State & Local Programs Speaker: TBA (2 hours, Professional Enhancement, Course #614-1604)

WedneSday, September 14 HIGHLIGHtS

9–11:15 AMWorkforce Housing Courses that count toward the Workforce Housing Designation

• Bridging the Gap

• Federal Programs and National Initiatives

• State & Local Programs

50/50 Raffle Drawing - 50/50 Raffle Tickets Purchase 1 ticket for $5 or 5 tickets for $20. All proceeds to benefit the Partnership for Housing Foundation.Drawing is Wednesday, September 14 during the Exhibit Hall Brunch.

50/50Need not attend

conference to participate. Will benefit the

Partnership for Housing Foundation.

DRAWING

regisTer online

Tuesday, September 13th, 6:30 PMDenim & Diamonds Cocktail Reception & Recognition Banquet/Installation of Officers

Elegant “Denim & Diamonds” reception featuring a “wine tasting” from a leading Maryland winery followed by a fabulous Gourmet Buffet and a special evening for the installation of 2012 MAR President, Pat Terrill and elected officers. An exceptional recognition ceremony including the announcement of the winners of the REALTOR® of the YEAR, Community Action and REALTOR®

Excellence (CARE), and other esteemed industry awards. Cocktail attire OR dress up your favorite blue jeans with a tuxedo jacket.

For the gentlemen—from black tie and cocktail attire to sport jacket and jeans, or choose a combination of both! For the ladies—from cocktail dresses to your favorite denim and sequined blouse, feel free to mix it up and add your diamonds!

Sponsors: Prudential Carruthers REALTORS®, Lynette Bridges-Catha, REALTOR®, Coastal Association of REALTORS®

Cost $65

tueSday, September 13HIGHLIGHtS

4–5:30 PMDecoding the Real Estate Blueprint…Discover the Systems for Success

Koki Adasi-Efuya will provide surefire ways to use database management to generate leads and tips to create a brand that will last.


3-day registration includes ONE ticket to: ‘BesT VAlue ’ regisTrATion opTion:

• Monday’s Keynote & Light Lunch• Monday’s Grand Opening Cocktail Party

• Tuesday’s Light Lunch with Exhibitors• Tuesday’s Happy Hour with Exhibitors

• Wednesday’s Exhibit Hall Brunch Continental Breakfasts, Refreshment Breaks, Conference gift, and full access

to the Tradeshow, and Learning Lab sessions Monday/Tuesday.

Eligibility for Continuing Education (CE) Credit: Course registration is REQUIRED at the time of Conference registration. MAR does not guarantee class availability if classes are not selected at the time of registration. Classes are available on a first-come, first served basis. Additional courses, changes and/or filled class status will be posted on the MAR website under http://www.mdrealtor.org/Events/2011AnnualConference.aspx

• YouMUSTarriveontime.ArriveEARLYforsessioncheck-in.

• NEW! You are REQUIRED to show a photo ID to gain entrance to each class.

• NOCEcreditwillbegivenoncethesessionhasstarted.NOEXCEPTIONS.

• Fullsessionattendanceisrequired.

• CEwillnotbegivenunlessparticipantisregisteredasa2011ConferenceAttendee once the class begins.

• AllelectronicdevicesMUSTbeturnedoffwhiletheclassisinsession.

• Pleaseallowatleast30daysforpost-ConferenceCEprocessing.

RealtoRs® and maR aFFiliate memBeRs:tHRu june 1 - $195

june 2 – august 15 - $245onsite – $275

(CAsh & CreDIt CArDs ONLY – NO CheCks wILL be ACCePteD ON-sIte)

NEW THIS YEAR – No ID, No CE Newly enacted Maryland Real Estate Commission

Continuing Education (CE) rules require that everyone must have their identification verified (photo ID

required) before entering the class. It is important that you arrive early to your CE classes for check-in.

It is also required that we obtain your MD Real Estate License Number which can be

provided ahead of time when you complete your online registration form.

!no Id,

no Ce

Rookie RealtoR® $50 oFF 3-day RegistRation $50 Discount does not apply to

on-site registrations.

don’t FoRget to RegisteR FoR tHe Rookie luncHeon on tuesday $10

MD REAL ESTATE COMMISSION LICENSING REQUIREMENTS IF YOUR LICENSE EXPIRES ON OR AFTER 10/2/08, HOURS NEEDED ARE:• Residential(ALLLICENSEES):15hoursincluding

3.0 Legislative (A), 1.5 Fair Housing (C), 3.0 Ethics (D) (required classes)

• CommercialDesignation(SOLELY-NORESIDENTIAL BUSINESS): 15 hours including 3.0 Legislative (A) & 3.0 Ethics (D)(required classes)

• Licenseeswithagraduatedegreeinlaworrealestate from an accredited college or university (must supply documentation at audit): 7.5 hours (3.0 Legislative (A), 3.0 Maryland Ethics(D) and 1.5 Fair Housing (C) (Residential); if solely commercial, 7.5 hours including 3.0 Legislative (A) 3.0 Maryland Ethics (D) and 1.5 elective) (required classes)

• Legislativetopic(A),fairhousingtopic(C),andethics topic (D) are required Maryland courses.

The ethics course must include MD Code of Ethics, Flipping and Predatory Lending.Source: http://dllr.maryland.gov/license/mrec/mreceducreq.shtml (04/11)

regisTer online

plus

‘BesT VAlue ’ regisTrATion opTion:

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Free photo ads for your listings in the Washington Post

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Pe n Fe d R e a l t y i s a m e m b e r o f t h e Pe n t a g o n Fe d e r a l Cr e d i t U n i o n f a m i l y.

2657 C Annapolis Road, Ridgeview Plaza, Hanover, MD, 21076 • 410-519-4221 Please visit our Web site for other locations.

Our Growth is your growth.“Best kept secret in town.”

– PenFed Realty Agents

marylandhomeownership.com is a consumer site designed to promote homeownership and offer information to consumers, whether they are homeowners or getting ready to sell or purchasing a home. The broad scope of current and useful information can also be used by you as a REALTOR® to stay abreast of programs specifically pertinent to Marylanders.

MAR has gathered many resources and placed them where you, your clients and the public can access them easily. A colorful widget is accessible to REALTORS® as a link from their website to marylandhomeownership.com. We encourage you to take a “walk around” the website to

become familiar with the array of useful articles and information. There are checklists for “Getting Your Home Ready to Sell” and “Pricing Your Home to Sell” which can be used in presentation kits for sellers. If you send regular communications to your favorite clients, you will want to send them “Ten Tips to Maintain Your Home.” If you are working with a first-time homebuyer, send them “Home Closing Procedure.”

Be sure to check out the index on “Available Financing Programs” for current federal, state and local programs and follow the link to www.mdhomeprograms.com for more detailed information.

Faqs for HomeBuyeRs/selleRs

The Frequently Asked Questions section (FAQs) answers the most common inquiries, such as the 3 most important steps to take before buying a home in today’s market are:

1. Improve your credit score;

2. Increase your household savings/reserves;

3. Be prepared to make a minimum cash down payment of 3% to 5% of the sales price.


Take a‘walk around’


Take a‘walk around’

uPdate youR PeRsonal naR PRoFile

The site connects directly with the NAR search program “Find a REALTOR®.” You’ll want to make sure your NAR membership profile is up-to-date with your designations, the languages you speak, and your niche or specialty so that potential consumers can find you when they search for a great match.

Houselogic

a ResouRce FoR RealtoRs® and consumeRs

marylandhomeownership.com includes a link to Houselogic.com, NAR’s homeown-ership site. This nationally-focused site in-cludes embedded videos, articles, and other information about maintaining, pro-tecting and increasing the value and liva-bility of owning a home.

otHeR ResouRces

other helpful maryland specific resources:

Maryland Life magazine (www.marylandlife.com) is an excellent source of information about life in Maryland. The site includes other magazines as well as event listings, information on traveling in Maryland, dining and an on-line forum.

Towson University offers specific information for military personnel and their families who are relocating to Maryland as well as for people who are simply relocating for a new job. The site, www.towson.edu/financialskills/maryland/, includes specific information for BRAC employment, regional and county resources, and information on choosing a Maryland location, K-12 public schools, higher education, and resources for higher education and incentives. It also includes information on the Maryland state taxes and resources for housing, employment and vehicle registration.

Fair and Accurate Credit Transactions Act (FACT or FACTA) allows consumers to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit reporting companies - TransUnion, Experian and Equifax. Consumers may contact them individually, or go to a central website, www.annualcreditreport.com, to obtain free access to annual credit reports.

Nonprofit housing counselors are an important resource for consumers. They can provide counseling on debt management, home buying, mortgage delinquency and predatory lending. Get the listings and information about where to find them and how they can help your buyer.

let us know How we’Re doingTake a tour of www.marylandhomeownership.com, download the widget to connect your clients and customers to a wealth of meaningful information. We welcome your comments and content suggestions—send them to us at [email protected].

Fresh Maryland-specific content for consumers and clients is added regularly to keep them informed as they navigate through buying or selling homes. Here are a few useful tools:

• “BuyingaHome”–Toolstohelpcalculatehowmuchhouseabuyer can afford, information on the mortgage and home inspection processes, and a full index of national, state and local financing programs and a link to homesdatabase.com

• “MovingtoMaryland”–Tipsfornewhomebuyersandrentersrelocating to Maryland.

• “SellingAHome”–Informationtohelpunderstandtheprocessand make a home more marketable.

• “Homeownership Sustainability” – Information aboutmaintaining property, avoiding foreclosure, as well as listings of certified nonprofit housing counselors in communities who can help navigate the foreclosure process and avoid scams.


From the HotlineCharles A. Kasky, Esquire

Generally, the question of who is an employee and who is an independent

contractor is important and often complex. Moreover, the financial

consequences in making this determination are significant for both

workers and employers. For workers, these consequences include

entitlements to minimum wage and overtime pay, unemployment

benefits, workers’ compensation benefits, Social Security employer

contributions, federal and state tax withholdings, protections against

illegal employment discrimination, etc. At stake for employers are the

financial and legal obligations in complying with these federal and state

requirements.

Real estate licensees enjoy a special IRS classification as Statutory

Independent Contractors under a 1992 federal law. The law applies for

federal tax purposes. In other words, a “statutory non-employee” is a real

estate agent who, but for this law, could be an employee for tax purposes.

Such a person is treated as an independent contractor for tax purposes even

when, applying the normal rules, he or she might have been an employee.

The tax treatment of such a person is the same as for any other independent

contractor.

Q.

A.

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

Independent Contractors in Real Estate – Know the Rules

I am the broker of a small company. I know that I am required to

take a class on Supervision, but I thought that my ability to direct the

activities of licensees affiliated with my company was limited because

they are independent contractors. Please clarify the relationship between

a real estate licensee and a supervising broker or branch office manager.

I’ve encountered this and related questions as I travel throughout

Maryland teaching the new classes in Agency and Supervision. The

attorneys who staff the MAR Legal Hotline have answered similar

questions.

Many licensees cling to the mistaken belief that because they are

independent contractors, brokers and managers cannot supervise them by,

for example, requiring their attendance at sales meetings. This is incorrect.

Although licensed real estate salespersons and associate brokers are

classified as independent contractors, brokers and branch office managers

are required by law to provide reasonable and adequate supervision over

the activities of licensees affiliated with that firm or office. This apparent

contradiction can be explained.


Prior to that, the common-law tests of control of work were used, as well as other tests

applied by the IRS. These tests also took into account how the agent was paid for his or

her efforts. The uneven application of the rules by the IRS to the real estate industry

resulted in Congress passing the law creating the status of statutory independent contractor.

The single biggest reason for the confusion is the fact that, even though agents are

independent contractors, brokers and managers are, by law, required to supervise their

activities.

In the real estate industry, you are an independent contractor if:

■ You are a licensed real estate salesperson;

■ Your income is related to sales and not hours worked; and

■ You and the broker have signed a written independent contractor agreement.

A written independent contractor agreement between the real estate agent and the broker

would state the fact that the agent is to be treated as an independent contractor for federal

tax purposes. However, thishasnoimpactonthelegaldutyofsupervisionplacedon

brokersandmanagers.

In Maryland, special laws created a similar category of independent contractor for the real

estate industry, which allows real estate firms to hire independent contractors and exempts

them from payment of unemployment and workers’ compensation insurance premiums.

State tax treatment follows federal law.

Independent contractor status in these circumstances is a special category of “non-

employee,” and is purely a tax-related rule. It has no impact on the legal requirements

concerning supervision. Do not confuse independent contractor status in the real estate

industry with a business consultant, for example. Consultants are independent contractors

because they meet other standards. Real estate licensees are independent contractors

because the law says they are, and Maryland law also says that they are subject to the

supervision of brokers, branch office managers and team leaders.

charles A. kasky, esquire, Vice President of legal Affairs

Maryland Association of reAlTors®

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From the HotlineCharles A. Kasky, Esquire


After nearly two years of effort, the Maryland Real Estate Commission has modified its regulations governing the conduct of continuing education. The regulations were adopted by a unanimous vote at the March 16, 2011 meeting of the Commission, published in the Maryland Register on April 8, and became effective ten days later on April 18.

The Maryland Association of REALTORS® participated in the process of developing the draft regulatory proposals, and we commented in writing following the Commission’s formal publication of the proposed regulations. Several of our recommendations were incorporated into the final regulation adopted by the Commission.

The new regulation is detailed and lengthy. Highlights of the more important provisions:

1. The regulations establish an Education Committee, composed of members appointed by the Chairman of the Commission. The Committee is empowered to review Commission staff decisions to deny approval of a course provider. If the Committee also declines to approve the provider, the matter is referred to a Commission hearing panel, whose decision is final.

2. The new regulation includes detailed standards for course content, providers, advertisements and classroom facilities, including requirements to provide qualified instructors and monitors.

3. The course approval procedure is spelled out, and includes a requirement for providers to apply for a course approval at least 30 days prior to the date a course is first offered. In advertisements for the course, providers may not identify a sponsorship of the course unless the course is offered as part of a larger event such as a

Final Continuing Education Regulations

conference or convention. Classrooms where real estate continuing education is taught must comply with applicable fire, safety, zoning and Americans with Disabilities Act requirements. Meal breaks are mandatory for courses scheduled for more than four hours in one day.

4. A new rule obligates all students to show picture identification to be admitted to a continuing education class.

Any student who arrives for the class after instruction begins or leaves

before the class is dismissed may not receive credit. A student will also be denied credit if out of the classroom more than five minutes during any 60 minute classroom period.

The new regulations are posted on the MAR website at http://mdrealtor.org/Legislative/GovernmentAffairsNews/articleType/ArticleView/articleId/421.aspx. Please feel free to contact me directly at [email protected] if you have any question regarding these or

any other regulations effecting real estate brokerage.

Mark feinroth, esquire, director of legal and regulatory Affairs


Regulation NewsMark Feinroth

the RegulatIons make It CleaR that a student may be denIed entRy to a ContInuIng

eduCatIon ClassRoom oR denIed CRedIt foR the Class If the student takes Into the

ClassRoom ReadIng mateRIals unRelated to the Class oR Consults any peRsonal eleCtRonIC CommunICatIon devICes.


Maryland Real Estate Commission NewsKatherine Connelly

Many real estate licensees have seen the February 7, 2011 email sent from

the Maryland Real Estate Commission regarding open houses and the

efforts of licensees who hope to find buyer clients while hosting an open

house. Judging from the volume of telephone calls, email and questions

received by Real Estate Commissioners and our staff since the email was

sent, it seems that a further explanation might be helpful. The simplest

general rule for practitioners to observe is that during an open house the

agent owes his or her duty of loyalty to the seller and must avoid any

conduct that violates that duty. The previous guidance was not intended

to prohibit an agent at the open house from gathering contact information

and following up with prospective buyers. The simple rule is to not engage

in buyer representation during the open house at the seller’s property.

One scenario that has generated discussion involves an agent who is not

the listing agent but who sits on the open house and meets potential

buyers. At the open house, the agent provides agency disclosure forms

that they represent the seller when prospective buyers express an interest

in the property. After the open house, the agent follows up with those

prospects and asks if they are interested in buyer representation. The

question is whether a licensee who sat at the open house can represent a

buyer he or she first met at the house if that buyer expresses an interest in

that specific property. The answer is yes, with caveats.

Nothing in the Real Estate Brokers Act states that the agent is prohibited

from entering into a buyer agent agreement with this buyer. There is,

however, a requirement in Title 17 Sec. 532 (3) that a licensee who receives

confidential information “may not disclose that information to: (i) any of

the licensee’s other clients” unless the former client consents in writing.

A majority of the members of the Maryland Real Estate Commission have

concluded that it is therefore acceptable for a licensee to enter into a

buyer’s agency agreement with a buyer the licensee met at an open house

who wishes to make an offer on that same house so long as the licensee

notifies both the buyer and seller that the agent owes a duty of

confidentiality to the seller concerning any confidential information the

agent may have learned in connection with the open house.

We recommend that brokers ensure that if these kinds of agency

relationships arise, both the buyer and seller acknowledge in writing that

they do not object to the arrangement. The agency acknowledgement

must be after the open house and prior to the offer being written. This is

not meant to be construed that a blanket waiver of agency is allowed.

The agency provisions of the Real Estate Brokers Act are challenging for

all of us and it is the reason the Commission sought legislative authority

in 2010 to require licensees to regularly review the law governing agency

in real estate brokerage. The Commission will continue to address

practical agency problems that confront licensees and we ask and welcome

you to contact us (www.mrec.dllr.state.md.us) with your questions and

comments. It is through this avenue of communication that the

Commission is able to assist you in complying with the laws and

regulations of the Commission.

katherine connelly is the executive director of the Maryland real estate commission

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

Agency Intricacies


Buckle-up, you’re in the driver’s seat with Media Connect. MRIS recently

overhauled Keystone Photo Upload (KPU) to let you describe photos in

your own words, giving a final farewell to the 157-choice “scene code”

pick list. More freedom and more control; it’s all available with

Media Connect.

Save time and expedite the search process by dropping listings that just

don’t make the cut. Media Connect syncs real estate in real time, and

helps get your clients into their dream home faster than ever before!

Media Connect not only makes uploading multiple photos painless, it

also makes marketing your listings easy. Upload photos now, add captions

later, and submit to the MLS only when you’re ready. Feel confident your

listings will always be viewed as a complete package.

By eliminating scene codes, Media Connect does away with confusing

labels. As Tim Campbell, Keystone Product Manager, explained, “With

KPU, you might have selected between Master Bedroom One and Master

Bedroom Two. But did that mean there were two photographs of the same

Master Bedroom or are there two Master Bedrooms? Eliminating scene

codes and incorporating open-ended descriptions ensures those questions

will never be asked again. The answer lies in the caption.”

Media Connect replaces scene codes with the following three-part system

to label photos quickly:

■ Category (Required) – Provides a consistent way to classify and

compare “like” photographs, with 15 simple choices.

■ Caption (Required) – Shown with the photographs in Matrix displays.

Freeform text field lets you convey the key selling points in the photo

with a 50-character limit.

■ Description (Optional) – Shown in the Media Center on the Matrix

Full listing to fully describe the details of the photo with a

250-character limit.

New displays in Matrix offer the option to present your search results in

pictures, instead of listing data, much like on HomesDatabase.com.

Quickly view the kitchen of one house and directly compare it to the

kitchen of another with the identical search criteria. The 15 categories

allow you to compare these “like” photographs, and offer your clients a

side-by-side comparison view of kitchens, living rooms and more of

listings that already meet their search criteria.

for more information, go to www.mris.com

Metropolitan Regional Information Systems, Inc.

Market Your Way with Media Connect

snippets


5 ‘Most Innovative’ Mobile AppsPc world recently released its top picks for most innovative apps for 2011 — mobile apps for tablets and smartphones that have the potential of making your life easier. here are five free apps that made the list for iPhone or Android:

1. www.fring.comAn upcoming version of this app will offer free video group calls with up to four people at once (A beta is currently available at www.fring.com/blog/?p=2857).Platform: Apple’s ios, AndroidPrice: free

2. www.Upsounddown.comyou can put your phone on speakerphone mode automatically by just laying your phone down on a table or turning the phone upside down like you’re using it as a microphone. when you pick the phone back up, you’ll be able to use the handset again. Platform: AndroidPrice: free

3. www.Zite.comThis app learns what you like to read and then scans your facebook and Twitter feeds for news based on your reading habits. It then populates a virtual magazine with content that is tailored to your reading habits. Platform: Apple iosPrice: free

4. Adobe Photoshop expressyou can manipulate photos using this app’s simple features on your iPhone or iPad and then store your photos on the Internet to access from anywhere. coming soon: Photoshop for iPad at www.macrumors.com/2011/03/31/adobe-shows-off-photoshop-for-ipad-with-layer-support/, which works like a

desktop version of the Photoshop software, which includes layers and effect features (price to be determined for

iPad version). Platform: Apple ios

Price: free

5. www.iswifter.comiPad lovers will appreciate this app, which allows you to watch flash videos and view web site animations. Platform: Apple ios

Price: free

Monday-Friday • 9AM- 6PM

reAlTor® Toolkit for Marketing and Technology newsThe reAlTor® Toolkit is 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, Mls issues, success stories and more.

This valuable benefit is emailed to members twice a

month free—no subscription costs.

To ensure that you receive the reAlTor® Toolkit

for Marketing and Technology news contact

[email protected] and to access back issues of the

reAlTor® Toolkit, www.mdrealtor.org/Publications/

Toolkits/reAlTorToolkit.aspx

Scan and find out how

Prudential Carruthers business model remains committed to investing in the programs and tools designed to leverage the success of our sales professionals. Even better, we have now put the right people in place to assist our sales professionals in utilizing them in the most productive way possible. We believe that our support equals your success! Are you ready?

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Miranda OpielaManager, Internet Marketing & Social Media Miranda has been honing her internet lead generation skillssince 2001. In her new position, she helps our sales professionals generate more leads and make more money by better utilizing internet marketing and social media. By attending Miranda’s social media training in offices throughout the company, our sales professionals are learning how to use Twitter, Facebook, blogs, QR codes and other online tools to generate business.

Tammy McIntyreAgent Services Regional ManagerTammy brings over 20 years of real estate experience to this new position. Have questions about our agent services? Tammy allows agents to do what they do best…list, show and sell by educating them on our fantastic company programs. Office visits, sales meetings and one-on-one assistance are just a few of the ways she interacts with our sales professionals.

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 410-547-5700Gaithersburg 301-948-4811

Harford County 410-515-5300Howard County 443-325-7890Ocean City 410-524-7000Ocean City West 410-520-2600Ocean Pines 410-208-3500Olney 301-260-7700Pikesville 410-484-8322Roland Park 410-464-5500

Salisbury 410-912-4700Severna Park 410-647-8000Silver Spring 301-879-2600Towson 410-828-4700V I R G I N I A O F F I C E SAlexandria 703-836-1464Fairfax/Oakton 703-691-7653Hamilton 540-338-4171

Lake Ridge 703-497-7788Leesburg 703-777-1250Manassas/Gainesville 703-396-6000Vienna 703-281-8500Winchester 540-722-9300WASHINGTON D.C. OFFICESCapitol Hill 202-393-1111Uptown 202-243-4200

An independently owned and operated member of The Prudential Real Estate Affiliates, Inc.

PCR Maryland Realtor Ad_April-May 2011.indd 1 2/23/2011 4:56:43 PM


A certain amount of lost momentum was to

be expected. After all, a year ago federal tax

credits were still inducing certain buyers

who would likely have chosen to retain a

wait and see attitude to purchase a home.

This was particularly true among first-time

homebuyers, who are more likely to be

induced to purchase by an $8,000 tax credit

than a move-up buyer is to be persuaded to

transact with a $6,500 tax credit. Moreover,

first-time homebuyers are not burdened by

the need to sell an existing home, which

made it much easier for them to access the

tax credits.

The hope has been that the pace of broader economic recovery would

largely offset the absence of federal tax credits, leaving sales volume

roughly unchanged on a year-over-year basis. But in March, unit sales in

Maryland were off 6.6 percent from year ago levels. In April, precisely one

year after the end of the federal tax credit period (one had to be under

contract by April 2010 to qualify for the most recent round of federal tax

credits), unit sales were down nearly 17 percent on a year-over-year basis.

Of Maryland’s 24 jurisdictions, fourteen experienced a decline in year-

over-year unit sales volumes in March. The corresponding figure in April

was nineteen. The five jurisdictions to experience an increase in unit

sales volume on a year-over-year basis include Kent County (+75%),

Caroline County (+41%), Worcester County (+28%), Garrett County

(+17%) and Baltimore City (+3.2%). Three of these jurisdictions are on the

Eastern Shore and for the most part they are not structured to primarily

appeal to younger, first-time buyers. For example, the eastern shore

counties of Worcester and Garrett are heavily marketed toward second

home purchasers, so the fact that both of these counties are on this short

Residential SalesAnirban Basu

Maryland’s Housing Market Limps into Spring

Signs of Broad-Based Market Improvement Remain Elusive


Residential SalesAnirban Basu

Maryland’s Housing Market Limps into Spring

in median sales price in March. In April, the corresponding statistic was

seventeen jurisdictions. Statewide, median sales price fell 7 percent

between April 2010 and April 2011.

Average sales price was down 4.3 percent over this period from April 2010

to April 2011 statewide, with eighteen Maryland jurisdictions

experiencing a decline in average price. There were six jurisdictions

where average sales price increased: Kent County (+85%), Queen Anne’s

County (+32%), Allegany County (+12%), Howard County (+7%),

Montgomery County (+3%) and Anne Arundel County (+2%).

Not coincidentally, Howard and Montgomery counties presently boast

some of Maryland’s lowest amount of inventory measured in months. In

other words, jurisdictions characterized by fewer inventories are more

likely to produce stable to rising prices relative to

jurisdictions characterized by excess supply.

Over the past year, only one Maryland jurisdiction

experienced an increase in sales volume coupled

with rising sales prices – Kent County, which in

April represented 0.45 percent of total statewide

sales volume.

Pending sales in March rose from 6,495 one year

ago to 7,101 more recently, an increase of 9

percent. But in April, pending sales were down

on a year-over-year basis, largely a reflection of

the substantial number of pending sales generated

in April of 2010 due to the then imminent

expiration of the tax credit. In April 2010,

pending unit sales totaled 7,871 in Maryland;

there were more than 1,500 pending sales in

Montgomery County and nearly 1,200 in Prince

George’s County. One year later, statewide there

list suggests that the appetite for vacation/second homes is building.

Baltimore City’s presence on this list of increased sales is largely a

reflection of the renewed appetite for properties among investors as well

as the substantial volume of distressed sales in these communities.

This view fits neatly with data characterizing median sales prices. In both

March and April of this year, median sales price in Baltimore City fell

below the $100,000 mark. In April, the city’s median sales price stood at

$95,000, nearly 26 percent below the median price one year earlier.

Other jurisdictions experiencing sharp reductions in median sales price

include Somerset County (-34%), Caroline County (-27%), Prince George’s

County (-18%), Worcester County (-15%) and Charles County (-14%). In

all, nineteen Maryland jurisdictions experienced a year-over-year decline

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residential sales continued from page 43

were 6,566 pending sales, a decline approaching 17 percent. Pending

unit sales in Montgomery County were down nearly 23 percent on a

year-over-year basis, but were up about 7.5 percent in Prince George’s

County, likely a reflection of the heightened level of activity taking

place among investors buying distressed properties there. In April,

pending sales were down in all but two Maryland jurisdictions on a

year-over-year basis. In addition to Prince George’s County, pending

sales were also up in neighboring Charles County.

The active inventory of unsold homes stood

at 37,767 in April 2011, down from 38,535

one year earlier. In absolute terms, active

inventory has declined in eighteen

Maryland jurisdictions over the past year,

which is perhaps the most uplifting aspect

of recent data characterizing the housing

market.

However, measured in terms of months of inventory, the story is a bit

less benign. Based on April 2010 sales volume, the months of

inventory in Maryland stood at 7.0 months one year ago. Based on

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March 2011 vs. 2010

UnITS AvERAgE PRICE

2011 2010 Change 2011 2010 Change

38 48 -20.8% $80,535 $103,307 -22.0%

394 411 -4.1% 366,858 333,298 10.1%

487 472 3.2% 98,244 138,151 -28.9%

483 563 -14.2% 228,493 254,323 -10.2%

95 63 50.8% 327,753 285,049 15.0%

18 20 -10.0% 137,047 147,158 -6.9%

85 92 -7.6% 265,461 282,892 -6.2%

57 56 1.8% 228,020 223,859 1.9%

129 124 4.0% 212,883 240,182 -11.4%

16 16 0.0% 161,556 143,179 12.8%

202 251 -19.5% 268,275 258,878 3.6%

21 16 31.3% 302,067 404,031 -25.2%

209 182 14.8% 245,313 245,172 0.1%

204 239 -14.6% 355,750 380,932 -6.6%

14 9 55.6% 194,457 314,806 -38.2%

756 839 -9.9% 450,671 398,807 13.0%

730 810 -9.9% 174,456 200,976 -13.2%

38 36 5.6% 280,405 386,511 -27.5%

7 16 -56.3% 150,782 120,175 25.5%

74 89 -16.9% 250,447 295,739 -15.3%

26 29 -10.3% 635,374 518,017 22.7%

93 96 -3.1% 135,480 155,271 -12.7%

49 59 -16.9% 141,998 157,916 -10.1%

118 113 4.4% 239,194 298,607 -19.9%

4,343 4,649 -6.6% $265,883 $271,961 -2.2%

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


residential sales continued from page 43

April 2011 sales volume, which was substantially lower than the

year-ago level, inventory is up to 8.2 months. Montgomery County’s

inventory is down to 4.2 months, and anecdotal evidence suggests

that the symptoms of a tight housing market have become

increasingly apparent there, including bidding wars for individual

properties and buyers bidding in excess of asking price. Inventory

is below 6 months of supply in Frederick County and below 7

months in both Howard and Prince George’s County. However, in

thirteen Maryland jurisdictions, months of inventory is in double

digits, with Talbot and Garrett counties both associated with more

than 30 months of inventory based upon April’s pace of unit sales.

Looking AheadWith much of the impact of federal tax credits now removed from

year-ago data, year-over-year comparisons should begin to look

better. The U.S. and Maryland economies continue to improve

gradually and employment growth remains apparent. Mortgage

rates have remained incredibly well behaved and have actually been

declining recently. All of this suggests that the marketplace should

be positioned for incremental improvement over the months ahead,

though ongoing declines in home prices as measured by an array of

indicators will likely induce many prospective buyers to retain their

wait-and-see postures.

Anirban basu, sage Policy group, Inc.

April 2011 vs. 2010

UnITS AvERAgE PRICE

2011 2010 Change 2011 2010 Change

41 44 -6.8% $109,850 $97,920 12.2%

457 517 -11.6% 340,032 333,071 2.1%

464 539 -13.9% 124,112 149,518 -17.0%

512 681 -24.8% 226,905 254,875 -11.0%

79 84 -6.0% 274,155 282,812 -3.1%

24 17 41.2% 140,450 191,618 -26.7%

122 130 -6.2% 276,843 297,477 -6.9%

63 74 -14.9% 228,998 232,817 -1.6%

123 165 -25.5% 213,774 259,508 -17.6%

20 30 -33.3% 178,625 237,018 -24.6%

215 274 -21.5% 239,533 250,783 -4.5%

21 18 16.7% 320,310 377,722 -15.2%

226 275 -17.8% 252,864 255,713 -1.1%

219 275 -20.4% 412,782 387,471 6.5%

21 12 75.0% 342,286 185,099 84.9%

837 1,070 -21.8% 436,537 425,250 2.7%

702 863 -18.7% 170,275 199,179 -14.5%

36 28 28.6% 427,346 324,886 31.5%

13 14 -7.1% 97,215 128,850 -24.6%

85 94 -9.6% 283,157 286,262 -1.1%

22 32 -31.3% 329,339 347,618 -5.3%

110 116 -5.2% 150,785 165,852 -9.1%

57 60 -5.0% 145,428 170,024 -14.5%

152 119 27.7% 266,942 310,165 -13.9%

4,621 5,531 -16.5% $270,082 $282,103 -4.3%

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


This year the Maryland legislature passed House Bill 972, authorizing the

use of the International Green Construction Code (IGCC) effective

March 1, 2012. Maryland will now be the first state to enable local

governments to implement the IGCC as a voluntary compliance

alternative. Stuart Kaplow, Chair of the USBGC Maryland Chapter,

reports that 14 local governments have already enacted LEED® based

green building initiatives, including several that have mandatory green

building laws imposed on private buildings.

LEED® 2009, an internationally recognized green building certification

system, is presently under revision. Green building stakeholders should

take advantage of the second public comment period, open July 1 through

August 15, 2011. (The first public comment period, which closed January

19, 2011, generated over 5,000 comments.) At the end of this process, a

final draft will go before USBGC’s membership for a vote, and the

new version will be delivered after 2012. For more information, visit

www.usgbc.org.

Aimee M. bader, esquire, staff Attorney of legal Affairs


As global warming becomes a threat that most governments openly

acknowledge, the focus on green building codes and voluntary green

building rating systems, such as the Leadership in Energy and

Environmental Design (“LEED®”) standards, is taking the forefront in

Maryland.

It’s not surprising that buildings are becoming the focus of the green

movement. The Environmental Protection Agency says that buildings

account for 70% of electricity consumption, 30% of energy use, 39% of

all carbon dioxide emissions, 40% of raw materials use, 30% of waste

output (136 million tons annually) and 12% of potable water consumption.

According to the U.S. Green Building Council’s (USGBC) Maryland

Chapter, statewide there are over 900 projects participating in LEED®

Rating systems, 40 LEED® Certified Buildings, and 520 LEED® Registered

Projects.

Commercial ConnectionAimee M. Bader, Esquire

Maryland Green Building Initiatives on the Rise

LEED® Public Comment Period Open July 2011

Commercial ConnectionAimee M. Bader, Esquire

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At Weichert®, our Internet leads are screened immediately, so good customers can fall into your lap.To say that more house-hunters are relying on the Internet nowadays is an understatement. Our job is to satisfy their need for information and quickly turn them into qualified leads. That’s why we’ve updated and streamlined our website, and it’s why our unique contact center system can connect qualified leads directly to your cell phone in a heartbeat.

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Documents

June 2011/July 2011