MEETING AGENDA - Tucson REALTORS · MEETING AGENDA ... C. Remove the Critical Date Worksheet from the TAR Library ... the goal is to consistently have open rates at 30% or higher

MEETING AGENDA Committee: Board of Directors

Meeting Date: March 17, 2016

Chair: Eric Gibbs, President

I. CALL TO ORDER – Please request any changes to the Agenda at this time

CONSENT AGENDA

II. ACTION ITEM(S): Approve the Consent Agenda including*:

A. TAR Board of Directors Meeting Report: January 21, 2016 .................................................................. 3

B. Committee Appointments ......................................................................................................................... 5

C. Remove the Critical Date Worksheet from the TAR Library .................................................................... 6

REGULAR AGENDA

III. PRESIDENT’S REPORT – Eric Gibbs

IV. EXECUTIVE COMMITTEE REPORT

A. Information/Action Item(s):

1. Recommend approving the appointments of Jim Bowman and Sue Cartun to the MLSSAZ

Regional Advisory Council*

2. Recommend approving the revised Authority Matrix* ..................................................................... 7

3. Clear Channel Ad ................................................................................................................................ 8

B. Next Meeting: May 5, 2016

C. Subcommittee Reporting/Action Items

1. Bylaws and Policy: No Meeting Report

2. Finance: No Meeting Report

3. Nominating and Credentials: February 3 and 11, 2016 Meeting Reports* ................................. 9

V. TREASURER’S REPORT – Krista Johnson

A. February 2016 Balance Sheet ................................................................................................................. 13

B. February 2016 Statement of Activities .................................................................................................... 16

VI. CEO’S REPORT – Marc Lebowitz

A. Smart Growth Class Report

B. February 29, 2016 Metrics Reports ........................................................................................................ 18

C. February 29, 2016 Member Statistics .................................................................................................... 22

D. February 29, 2016 Demographics ........................................................................................................... 24

VII. EDUCATION COMMITTEE ............................................................................................................. Ashira Davis

A. Information Item(s): No Meeting Report

B. Next Meeting: TBD


1. Property Management: January 14 and February 11, 2016 Meeting Reports ............................. 26

2. Green: April 27 Meeting Report ....................................................................................................... 28

VIII. GOVERNMENT AFFAIRS COMMITTEE ......................................................................................... Doug Wright

A. Information Item(s): February 10, 2016 Meeting Report ...................................................................... 29

B. Next Meeting: April 13, 2016, 8:30 a.m.


1. Candidate and Ballot Measures: No Meeting Report

2. RAPAC Fundraising: No Meeting Report

IX. COMMUNICATIONS/OUTREACH COMMITTEE .............................................................................. LuAnn Kidd

A. Information Item(s): February 11, 2016 Meeting Report ...................................................................... 30



1. Marketing Session/Home Tours: February 3 and March 2 Meeting Reports ............................... 31

2. Consumer Outreach: No Meeting Report

3. Recognition: No Meeting Report

X. REALTOR RISK COMMITTEE........................................................................................................ Robin Siddle

A. Information Item(s): February 9, 2016 Meeting Report ......................................................................... 33

B. Next Meeting: April 12, 2016


1. Forms: January 14, February 11 and March 3, 2016 Meeting Reports ........................................ 34

XI. MULTIPLE LISTING SERVICE OF SOUTHERN ARIZONA ............................................................. Cathy Erchull

A. Information/Action Item(s): February 23, 2016 Meeting Report ........................................................... 37

B. Next Meeting: April 26, 2016, 3:00 p.m.

XII. AFFILIATE COUNCIL ..................................................................................................... Steve Van de Beuken

A. Information Item(s): No Meeting Report


XIII. SMALL BROKER COUNCIL .................................................................................................... Cheryl Terpening

A. Information Item(s): January 27 and February 23, 2016 ..................................................................... 39

B. Next Meeting: March 22, 2016, 11:30 a.m.

XIV. YOUNG PROFESSIONALS NETWORK ADVISORY BOARD ..............................................................Max Fisher

A. Information Item(s): February 4, 2016 .................................................................................................. 41

B. Next Meeting: February 4, 2016, 2:00 p.m.

XV. BOARD LIAISONS

A. Certified Commercial Investment Member ..................................................................... Greg Boccardo

B. Young Professionals Network .......................................................................................... Jessica Alvarez

XVI. UNFINISHED BUSINESS

XVII. NEW BUSINESS

A. AAR Treasurer Candidates for 2017 (9:00am)

B. Anti-Trust Presentation – Heidi Brent, Legal Counsel ............................................................................. 43

C. Revised Policy #4: Anti-Trust Compliance* ............................................................................................ 49

D. iBox upgrade: Sean Murphy

XVIII. OPEN FORUM

XIX. CORRESPONDENCE

XX. NEXT MEETING: May 19, 2016

ADJOURN

* Indicates Action Item

MEETING REPORT

Committee: Board of Directors

Meeting Date: January 21, 2016

Chair: Eric Gibbs, President

Called to order: 8:30 a.m. (quorum present)

Attendance: Nacho Castro Christopher Cobb (via Conference Call) Eric Gibbs

Robert Hallberg Lynn Hellwig Ginny Huffman Krista Johnson

Darla Johnson Pat Leahy John Mijac Louis Parrish

Christie Rich Steven Van De Beuken Barbara Wilson Henry Zipf

Legal Counsel: Heidi Rib Brent

Staff: Marc Lebowitz Andrea Ballard Christine Sanchez Annalisa Moreno

Janet Wood Sean Murphy

Liaisons: Greg Boccardo Jessica Alvarez

Guests: Bill Arnold Kent Simpson

Action Items:

M/S/C: Approve the Consent Agenda as presented.

M/S/C: Approve President Gibbs twelve member appointment to the Tucson REALTORS® Charitable Foundation Board of

Directors.

M/S/C: Approve the 2016 Legislative Policy Manual.

M/S/C: Approve the Statement of Investment Policy Objectives and Guidelines.

M/S/C: Approve the proposed revision to Policy #14.

M/S/C: Recommend that proposed Bylaws language to Article XIX, Section 2 of the TAR Bylaws be presented to membership for

vote.

M/S/C: Recommend that proposed Bylaws language to Article XIII, Section 5 of the TAR Bylaws be presented to membership for

vote.

M/S/C: Reaffirm the TAR Policy Statement as amended.

M/S/C: Approve the proposed revision to Policy #25.

President’s Report:

Welcome remarks by President Gibbs.

Board members were reminded they were elected by membership to be their voice; they were encouraged to review the

agenda prior to meetings and to voice their opinions and ask questions.

Introductions

The Tucson REALTORS® Charitable Foundation Board met on January 19 and elected their officers: Lisa Suarez -

President-Elect, Dea Hinrichs – Vice President and Robert Hatch – Treasurer. Fisher House was named their charity of

choice for the Softball Tournament on April 30.

Treasurer’s Report:

November 2015 Financials reported.

CEO’s Report:

Broker Meeting is February 9 at 10am. The agenda will include a preview of 2016, preview of the New Member Online

Application process, plans for the 59 minute meetings.

Economic Forecast with realtor.com® Chief Economist, Jonathan Smoke on March 28 at 2pm.

Review of the December Metrics Report; the goal is to consistently have open rates at 30% or higher.

Expect changes to the website in the coming months.

Review of the 2015 Housing Market Snapshot; it was suggested to include New Home Permits and original list price vs sold

list price.

There will be a 12-13 month drip campaign for new members; the messaging will include tools available to members.

We will begin an exit interview process with members whose status is changed to inactive within the first year.

3

The TAR Shootout was a successful, with more than 5000 players competing in the 26th annual event. An article by Arizona

Daily Star was posted to the TAR Facebook page; it was a boost post which cost $10.00 and will increase our reach to an

estimated 1300 – 3300 people.

Information Items:

Steve Huffman gave an update on RAPAC Fundraising:

o Holiday Helper Report: $750 Visa Gift Card winner was Nikki Halle and $250 Visa Gift Card winner was Sue Cartun.

Members have invested $27,387 since this campaign started on October 1, 2015.

o 2016 RAPAC Office Challenge Championship; offices will compete in one of three office categories. The office with the

highest rate of participation in each category will be awarded the RAPAC Office Challenge Championship at the

Installation.

o Make an Assist and Win Big with RAPAC: There will be two chances to win. Contribute $25 between January 16 and

March 17 and compete in the TAR Bracket Challenge and automatically be entered into a drawing for a 58” Samsung

TV.

President Gibbs sent a “Presidential 2016 RAPAC Challenge” to all Committee and Subcommittee Chairs seeking 100%

participation in RAPAC by June 2016; he encouraged his board to invest their fair share of $25 to RAPAC.

Discussion of a campaign to encourage the community to vote; it was suggested to task the Government Affairs Committee

with the campaign. It will be discussed at the next Executive Committee meeting.

RAPAC Fundraising Chair Bill Arnold committed to raising the associations 2016 RAPAC goal.

CCIM Update from Greg Boccardo:

o Don Baker of Larsen Baker Development, Brokerage & Management recently passed away; funeral services are being

arranged.

o CCIM, MPA and other business leaders have partnered to attend City Council meetings related to real estate and land

development. They hope to have 5 to 10 people in attendance to voice their opinion.

YPN Update from Jessica Alvarez:

o Pinball Tournament on February 23 at D&D Pinball from 5:30 – 7:30pm; $25 entry fee to play and proceeds raised will

benefit RAPAC.

o 2016 goal for YPN is to have one event per quarter.

MLS Update:

o 2016 Officers elected: Henry Zipf - President Elect, Judith Grammond – Vice President and Kimberly Clifton –

Treasurer.

o MLSSAZ Vice President Sean Murphy is currently negotiating the terms of the new Supra contract; goal is to have it

finalized by April 2016.

o Completion of regionalization is expected to take six months.

Review of the revised Statement of Investment Policy Objectives and Guidelines.

Review of the Mortgage Payoff Plan prepared by William and Harvey Mordka as an option on utilizing the Non-Designated

Operating Reserve Funds transferred to Morgan Stanley. It was suggested to consider an additional mortgage payment

annually and Invest with Morgan Stanley.

Bill Arnold presented a year-end report on Pima County Flood Control District Committee he was appointed to in 2015.

Board members received the Director and Committee Member Affirmation to review and sign.

Open Forum:

o Update on the lawsuits in Massachusetts and California challenging the Independent Contractor Status.

o Pima County employees are browsing the internet for local Airbnb properties and contacting the owners to notify them

that they are reclassifying them as a hotel and will be imposing a bed tax on their property.

Adjourn: There being no further business the meeting was adjourned at 10:56 a.m.

4

2445 N. Tucson Blvd, Tucson, AZ 85716 (520) 327-4218 Fax (520) 322-6613

www.tucsonrealtors.org

January 29, 2016 To: TAR Board of Directors From: Christine Sanchez RE: 2016 Committee Member Interest The following members are interested in serving on 2016 Committee and Sub-Committees: Property Management Sophia Herrera Risk Management Diana Zarate

5

IB REALTOR®

CRITICAL DATE WORKSHEET This form is for internal use ONLY and should not be provided to the public or other real estate companies.

G:r EQUAL HOUSING OPPORTUNITY

PROPERTYADDRESS: __________________________________________ ~ ______________ __

SELLER: ____________________________________________________________________ _ BUYER: ______________________________________________________________________ __

Listing Agent Name: ___________________________________ _ Company: _______ -L _______________________________ ___

Phone: ____________ _ Cell: __________ _ Fax: ----------,------Selling Agent Name: ______________________________ ---,--____ _ Company: ________________________________ ---,--__ " _____ __

Phone: "" '. Cell: ____________ Fax: ___________ _

Escrow Company: ___ ,_, _____________________ Escrow #: ________ _ Escrow Officer: _______________ Phone: ________ _ Fax: ______ ___ Lender: ____________________ Loan,Officer: _______________ __

Phone: Cell:

Mutual Acceptance of Purchase Contract: _____ _

ACTIONS REQUIRED 1 Earnest monies deposited to escrow: 2 Buyer to submit all loan information to lender by: 3 S.P.D.S. completed and delivered to Buyer by: 4 Insurance Claims History (C.L.U.E.) 5 Buyer to apply for Homeowners Insurance by: 6 B.I.N.S.R. (Buyers Inspection Notice & Sellers Response) by: 7 Sellers response to B.I.N.S.R. by: 8 Buyers response to Sellers response 9 Receipt of Title Commitment/Sch B: 10 Deadline for Buyer disapproval of title com: 11 In the event of lOw appraisal Buyer must cancel by: 12 Repairs (if any)' Gompleted no later than: 13 Buyers walk through inspection no later than: 14 Failure to qualify notice delivered by Buyer no later than: 1'5 Buyer to sign closing and loan documents no later than: 16 Recordation of Documents (COE) and Keys Delivered: 17 Removal of keysafe, sign-in sheets, and sign:

1 2 3 4 5 6 7 8 9 10' 11

, 12 '.J3

14 15 16 17

OTHER ACTIONS REQUIRED SPECIFIC TO TRANSACTION I··".'··· .. ·

1 HOA documents~ ordered by: 2 HOA documenE; received and accepted by buyer: 3 Lead Paint Disclosure: 4 Home Protection Plan Ordered: 5 Seller to deliver completed Affidavit of Disclosure 6 Septic/alternative System Certification: 7 "ADWR" Registration of Existing Well: 8 Other:

., ,

~.' 'J t ','t \--

----------------------CURE PERIOD ACTIVATED Date: Cure Deadline: or Canceled: Date: Cure Deadline: or Canceled:

1 2 3 4 5 6 .. 7;, 8

Fax:

DATE DUE IMMEDIATELY

DATE DUE

,-,

TUCSON ASSOCIATION OF REALTORS.2445 N, Tucson Blvd Tucson.AZ OOOAZ Phone: (123) 1234567 Fax:

COE:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

1 2 3 4 5 6 7 8

Christine Sanchez Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

DATE DONE

DATE DONE

Revised 07/11/06

6

Rev February 4, 2016

Authority Matrix

CEO Legal Counsel President Executive

Committee

Board Other

Contracts-Professional or Vendor Unbudgeted*

$1,000 per contract

All Contracts -

Contract Review

Unbudgeted*

> $5,000 per

contractEquipment/Supplies Purchase Orders Unbudgeted*

$1,000 per PO

Unbudgeted*

> $5,000 per

contractEmployee Policy -

Changes to Benefits

Policy Review Approval

If no additional

costs to Association

Employee Policy -

Changes to Administrative

Policy Review

Pay increases -

Annual merit

5% per individual

per year budgeted

annuallyBonus / Incentive Pay Per board approved

budgetChanges to Board Policy Approval

Changes to Board By-laws Approval Approval by

Members at LargePress Releases; Written publications

representing the Association

CEO or President CEO or President

Spokesperson representing the

Association to the public.

CEO or President or

President Designee

CEO or President or

President Designee

Government Affairs

Chair on Gov Affairs

issues.

IN ALL CASES, DECISION MAKERS MUST COMPLY WITH BUDGET RESTRICTIONS

Dollar amounts in the matrix are maximum approval limits.

This authority matrix may only be modified with board approval.

*"Unbudgeted" refers to items that are not board approved as budget line items. (Budgeted line items are already board approved.)

7

—Additional Information

Pkg. (8) 10 Sec. Spot LCD Screens on Bag Belt Carousels

Approx. 52”

- Added Capabilities! - Ad Stacking - Countdown Timer - Weather Sync - Promote Events! Net Monthly Rates: - $295/month - 5 years - $325/month - 3 years

8

MEETING REPORT

Meeting: Nominating Committee

Date: February 3, 2016

Chair: Nicole Brule-Fisher

Called To Order 8:32 a.m.

Attendance Nicole Brule-Fisher Darla Johnson Steven Redmond Lisa Suarez

JT Tsighis Marco Flores

Staff Christine Sanchez

Information Items:

Welcome by Chairman Nicole Brule-Fisher and self-introductions

Review of positions available: President-elect (1), Vice President (1), Treasurer (1), TAR REALTOR Director (5),

TAR Affiliate Director (1) and AAR Quota Director (2)

Reviewed Nominating/Credentials Committee’s charge.

Darla Johnson will consider an Officer or Director position.

Review of the current Board of Director list.

Staff will send an email from Chair Brule-Fisher to those directors whose term expires in December 2016

inquiring if they will continue to serve in the capacity of a director, have an interest in an officer position or if they

can recommend a candidate for a director position. Follow up phone calls will be made.

It was suggested to invite the YPN Advisory Board to attend a TAR board meeting as an educational opportunity

to develop leadership.

It was suggested to have President Gibbs send a hand written invitation to all committee chairs and invite them

to a TAR board meeting to witness the business conducted at a director level.

The following members will be contacted regarding their interest in the position of Affiliate Director (one position

available for two-year term):

Jessica Alvarez (Marco Flores)

Steve Van De Beuken (Steve Redmond)

Ashira Davis (Lisa Suarez)

The following members will be contacted regarding their interest in the position of TAR Director (five positions

available for two-year terms):

Max Fisher (JT Tsighis)

Megan Wingfield (Lisa Suarez)

Jason Helfrich (Darla Johnson)

Constance Negley (Nicole Brule-Fisher)

Caroline Minor (Steve Redmond)

Robin Willis (Darla Johnson)

Liane Wong (Steve Redmond)

Kimberly Marone (Darla Johnson)

Nick Coury (JT Tsighis)

Doug Wright (JT Tsighis)

The following members will be contacted regarding their interest in a TAR Director or Officer position in which

they qualify for:

Nacho Castro (Lisa Suarez)

Ginny Huffman (Nicole Brule-Fisher)

Laury Watson (Darla Johnson)

Barbara Wilson (Darla Johnson)

9

Patricia Leahy (Darla Johnson)

Louis Parrish (JT Tsighis)

Krista Johnson (JT Tsighis)

Chair Brule-Fisher will contact members from the committee list provided regarding their interest in an AAR

Director (two positions available for a three-year term) position in which they qualify for.

Tyler Lopez; keep in mind for the future as a TAR Director.

Staff will forward the subcommittee the election timeline.

Next meeting scheduled for February 11 at 9:00am.

Review of Honorary Life Member applications; tabled for the next meeting.

Staff will provide regular progress reports to the committee regarding interested candidates.

Adjourn: There being no further business, the meeting adjourned at 10:16 a.m.

10

MEETING REPORT

Meeting: Nominating Committee

Date: February 11, 2016

Chair: Nicole Brule-Fisher

Called To Order 9:01 a.m.

Attendance Nicole Brule-Fisher Darla Johnson Lisa Suarez JT Tsighis

Tom Heath

Staff Christine Sanchez

Action Items:

M/S/C: Recommend the Bylaws Subcommittee add a second Affiliate Member Director position to the TAR Board of

Director composition with a staggered term from the current Affiliate Member Director seat.

M/S/C: Recommend the Board of Directors approve Walter Giorgianni and Rose Marie Giorgianni as Honorary Life

Members.

M/S/C: Recommend the Bylaws Subcommittee create a subcommittee of Honorary Life Members to review

Honorary Life Member applications.

Information Items:

Report from Chair Brule-Fisher

Ginny Huffman has agreed to submit an application for President-Elect.

Nacho Castro has agreed to submit an application for Vice President

Christie Rich is interested in serving another year as Director; staff sent her an application. Chair Brule-

Fisher will inquire if she is interested in a Treasurer position.

Chris Cobb has not committed to serving another term as Director as his time may be better utilized in a

different capacity. Staff will forward him an application.

Chair Brule-Fisher will contact Constance Negley and inquire if she has an interest in submitting an

application for the Director postion.

Report from Darla Johnson

Pat Leahy has agreed to submit an application for Director.

Barbara Wilson has agreed to submit an application for Vice President.

Robin Willis has agreed to submit an application for Director.

Darla and Chair Brule-Fisher will follow up with Jason Helfrich to submit an application for a Director seat.

Kim Marone is not qualified but may be interested in serving on a committee.

Will contact John Mijac and inquire if he is interested in submitting an application for the Treasurer position.

Report from James Tsighis (JT)

Nick Coury is not interested in serving in 2017, but keep him in mind for 2018.

Max Fisher is interested in serving as Director.

Krista Johnson is interested in an Officer seat.

Louis Parrish will let JT know of his intentions as Director or Officer.

Doug Wright is interested in serving as President-Elect.

Report from Lisa Suarez

Marco Flores seemed interested in Director position; staff will send him an application.

Megan Wingfield will be submitting an application for a Director position.

Ashira Davis did not commit to anything. She will be inquiring if current Affiliate Director Steve Van De

Beuken will be submitting an application.

Tom Heath has agreed to reach out to the following members;

Jessica Alvarez about her interest in submitting an application for the Affiliate Director position.

11

Jennie James about her interest in submitting an application for the TAR Director position.

Chair Brule-Fisher mentioned Steve Van De Beuken is interested in another term as Affiliate Director.

The committee will reconvene after elections to determine the next course of action and follow up with those

who were elected and those who weren’t elected.

Darla Johnson will follow up Laury Watson and inquire if she has an interest in submitting an application for

Treasurer.

Lauren Smith-Klase has withdrawn her application as Ronda Arguetta (same company) will be submitting an

application for Affiliate Director.

Discussion of a second Affiliate Director seat for continuity purposes.

Staff will contact Kent Simpson and Steve Van De Beuken.

The following members will be contacted regarding their interest in serving as an AAR Quota Director:

Ginny Huffman (Chair Brule-Fisher)

Krista Johnson (JT Tsighis)

Pat Leahy (Lisa Suarez)

Henry Zip (Chair Brule-Fisher)

Luann Kidd (Chair Brule-Fisher)

Review of the Honorary Life Member applications.

Adjourn: There being no further business, the meeting adjourned at 10:04 a.m.

12

Tucson Association of REALTORS®Statement of Financial Position

February 29, 2016

ASSETS

Current Assets

Checking & Savings AccountsPetty Cash $ 1,600.00Operating Accounts 390,580.90Reserve Accounts 707,612.93PSF Trust Account 1,003.31

Total Checking & Savings Accts 1,100,797.14

Accounts ReceivablesAccounts Receivable 158,301.10

Total Accounts Receivables 158,301.10

Prepaid AccountsPrepaid Expenses 6,366.99Prepaid Taxes & Deposits 18,776.83

Total Prepaid Accounts 25,143.82

Total Current Assets 1,284,242.06

Unaudited - For Management Purposes Only13


February 29, 2016

Long Term Assets

Property and EquipmentLand 1,180,000.00Disc on Building Tucson Blvd 9,000.00Building 2445 N Tucson Blvd 2,132,126.57Office Equipment 98,023.35Telephone Equipment 49,037.22Computer Equipment 259,182.22Furniture & Fixtures 133,931.52Security System 19,802.54

Total Property and Equipment 3,881,103.42

Asset DepreciationAccum Dep Building Tuc Blvd (548,856.67)Accum Dep Office Equipment (81,419.08)Accum Dep Telephone Equipment (40,196.39)Accum Dep Computer Equipment (236,926.72)Accum Dep Furniture & Fixtures (98,366.39)Accum Dep Security System (18,611.98)

Total Asset Depreciation (1,024,377.23)

Investments in SubsidiaryInvestment in Sub-MLS 399,161.39

Total Investments 399,161.39

Total Long Term Assets 3,255,887.58

Total Assets $ 4,540,129.64



February 29, 2016

LIABILITIES AND CAPITAL

Current Liabilities

Accounts PayableAccounts Payable $ 10,928.34A/P - Monthly CC Billing 21,342.16Accounts Payable Other 5,554.01Due to Others 11,651.37Current Portion Debt 95,009.08Current Portion Lease 16,741.32Room Rental Deposits 500.00

Total Accounts Payable 161,726.28

Deferred Dues IncomeTAR Deferred Dues 822,825.97

Total Deferred Dues Income 822,825.97

Dues PayableAAR Dues Payable 5,576.47NAR Dues Payable 3,920.00NAR Public Assessmt Payable 1,120.00

Total Dues Payable 10,616.47

Total Current Liabilities 995,168.72

Long-Term Liabilities

Mortgage Payable 1,060,076.76Long-Term - Telephone Lease 6,826.57

Total Long-Term Liabilities 1,066,903.33

Total Liabilities 2,062,072.05

Capital

Surplus 2,032,802.87Restricted Net Assets 384,198.38Designated Net Assets-STAR Pro 21,129.13Net Income 39,927.21

Total Capital 2,478,057.59

Total Liabilities & Capital $ 4,540,129.64


Page: 1

Tucson Association of REALTORS®Statement of Activities

Compared with Budget and Last YearFor the Two Months Ending February 29, 2016

AccountNumber

Account Description YTDActual

2016Budget

% of Budget Last YTDActual

2015Budget

% of Budget

Revenues3100-070 REALTOR Dues $ 152,719 $ 996,887 15.32 $ 140,720 $ 910,120 15.463130-070 Affiliate Dues 2,345 17,998 13.03 1,945 18,241 10.663140-070 Institute Affiliate Dues 245 0 0.00 245 0 0.003200-070 Application Fee Income 32,750 170,568 19.20 33,750 165,050 20.453205-070 Dues Late Fee Income 16,050 25,000 64.20 20,290 22,000 92.233215-070 Returned Check Fee Income 75 0 0.00 50 0 0.003220-010 Misc Income 252 500 50.40 1,000 500 200.003225-010 MLS Rent Income 26,833 161,000 16.67 26,833 161,000 16.673230-010 MLS Cooperative Agreement 116,935 701,610 16.67 111,450 668,700 16.673235-010 MLS Service & Maint Income 7,628 45,765 16.67 7,535 45,208 16.673245-010 Management Income 4,655 31,680 14.69 6,830 45,000 15.183300-010 Cell Tower Income 2,650 11,925 22.22 2,650 15,900 16.673310-050 Interest Income - Finance 60 2,500 2.40 138 1,250 11.043400-081 NME No Show Fees 40 0 0.00 0 0 0.003410-080 Misc Class-Attendee Income 355 10,000 3.55 0 20,000 0.003440-082 GRI Class Income 1,470 0 0.00 1,225 0 0.003500-095 EXPO Income 0 50,000 0.00 0 50,000 0.003600-095 Member Meeting Income 0 1,000 0.00 0 0 0.003620-095 Installation/Awards Income 0 7,500 0.00 0 7,500 0.003700-080 Internet Education Income 160 600 26.67 165 1,800 9.173800-040 Facility Rental Income 4,126 24,000 17.19 3,532 28,000 12.613850-010 Testing Center Income 6,906 30,000 23.02 5,932 37,500 15.823900-090 Affiliate Sponsor Income 0 4,000 0.00 9,500 10,000 95.00

Total Revenues 376,254 2,292,533 16.41 373,790 2,207,769 16.93

ExpensesSalaries/Benefits 180,555 1,394,997 12.94 59,223 1,301,008 4.55Employment Search 0 1,000 0.00 33,075 500 6,615.00Pension Plan 5,168 35,208 14.68 2,524 31,649 7.97Staff Development 6,455 18,000 35.86 1,510 8,000 18.88Postage/Printing/Supplies 6,252 30,000 20.84 6,511 30,500 21.35Copier Expense 1,012 5,500 18.40 (26) 5,500 (0.47)Building Related Expense 21,835 115,800 18.86 18,443 107,300 17.19

4004-040 Building Security/Setup - Faci 1,664 12,000 13.87 2,983 12,000 24.864041-050 Credit Card Charges - Finance 7,326 25,000 29.30 15,139 21,000 72.09

Travel Related Expense 12,274 81,638 15.03 5,762 112,245 5.13Professional Fees 3,321 31,000 10.71 5,241 28,000 18.72

For Management Purposes Only16

Page: 2

Tucson Association of REALTORS®Statement of Activities

Compared with Budget and Last YearFor the Two Months Ending February 29, 2016

AccountNumber

Account Description YTDActual

2016Budget

% of Budget Last YTDActual

2015Budget

% of Budget

Board Related Expenses 251 37,893 0.66 593 31,366 1.894190-050 Depreciation - Finance 24,220 102,000 23.75 18,468 102,000 18.114191-050 Mortgage Interest Expense - Fi 9,537 60,000 15.90 10,316 60,000 17.194195-010 Misc Expense - G&A 0 300 0.00 0 300 0.004310-020 Life Member Expense - Board 0 6,000 0.00 5,890 6,000 98.174315-020 Leadership Development Class 4,444 3,000 148.13 2,840 3,000 94.67

Bldg/Sales Tax 5,652 45,000 12.56 7,225 48,500 14.90Education Exp 6,864 55,000 12.48 6,953 52,500 13.24Community Exp 1,125 15,000 7.50 0 42,500 0.00Outside Events 0 36,500 0.00 0 36,000 0.00Member Events 608 24,000 2.53 3,077 15,000 20.51Forms & Risk 187 4,500 4.16 220 3,500 6.29Housing Opp Exp 0 12,000 0.00 0 12,000 0.00Public Affairs Exp 24,022 33,000 72.79 51,173 52,000 98.41Marketing Exp 4,013 14,000 28.66 50 22,500 0.22IT Exp 7,039 44,800 15.71 8,049 39,300 20.48Leg Res Exp 2,500 7,000 35.71 0 7,000 0.00Income Tax Expense 2 5,000 0.04 2 5,000 0.04

Total Expenses 336,326 2,255,136 14.91 265,241 2,196,168 12.08

Net Income $ 39,928 $ 37,397 106.77 $ 108,549 $ 11,601 935.69

For Management Purposes Only17

E-mail Blast Tracking Report through February 29, 2016

Weekly Update

Date # Sent # Opened % Open Rate

Click-

Throughs

Fwd

Emails Score

2/1/2011 4,992 1,797 36.00% 492 399

2/8/2011 5,727 2,000 34.92% 517 463

2/15/2011* 4,681 1,909 40.78% 546 461

2/22/2011 Data not avail

2/7/2012 4,727 1,779 37.63% 256 383

2/14/2012 4,458 1,464 32.84% 131 336

2/21/2012 4,471 1,667 37.28% 170 390

2/28/2012 4,455 1,159 26.02% 150 345

2/5/2013 3,800 1,454 38.26% 201 353

2/12/2013 3,646 1,572 43.12% 104 420

2/19/2013 3,598 1,434 39.86% 97 344

2/26/2013 3,639 1,387 38.11% 144 238

2/4/2014 4,169 1,986 47.64% 112 887

2/11/2014 4,180 1,820 43.54% 1265 1839

2/18/2014 4,188 2,058 49.14% 809 1522

2/25/2014 4,271 1,765 41.33% 273 708

2/3/2015 4,599 2,034 44.23% 115 806

2/10/2015 4,617 1,940 42.02% 123 762

2/18/2015 4,789 2,107 44.00% 247 875

2/24/2015 4,788 1,979 41.33% 132 728

12/3/2015 5,892 1,429 24.25% 120 7.1

12/10/2015 5,880 1,481 25.19% 125 7.2

12/17/2015 5,877 1,432 24.37% 107 7

12/31/2015 6,104 1,444 23.66% 227 7.7

1/7/2016 6,086 1,654 27.18% 217 7.7

1/14/2016 6,089 1,541 25.31% 126 7.2

1/21/2016 6,081 1,527 25.11% 167 7.4

1/28/2016 5,351 1,413 26.41% 141 7.4

2/4/2016 5,385 1,472 27.34% 178 7.2

2/11/2016 5,374 1,393 25.92% 127 7.3

2/18/2016 5,363 1,398 26.07% 152 7.5

2/25/2016 5,403 1,355 25.08% 119 7.2

18


Government Affairs Update

Date # Sent # Opened % Open Rate Click-Throughs Fwd Emails Score

2/10/2011 5,677 1,569 27.64% 27 315 315

2/24/2011 4,682 1,186 25.33% 38 188 188

2/9/2012 4,458 1,469 32.95% 224 344

2/7/2013 3,674 1,163 31.65% 9 223

2/21/2013 3,624 1,069 29.50% 9 203

2/14/2014 4,185 1,315 31.42% 11 371

2/12/2015 4,641 2,248 48.44% 0 821

2/26/2015 4,784 1,506 31.48% 18 405

12/3/2015 5,898 1,478 25.06% 8 6.6

12/31/2015 6,083 1,609 26.45% 13 6.7

1/28/2016 5,391 1,451 26.92% 34 6.8

2/11/2016 5,375 1,717 31.94% 205 8

2/25/2016 5,397 1,701 31.52% 314 8.5

Education Update


2/2/2011 4,981 1,966 39.47% 257 505 505

2/6/2012 4,421 1,454 32.89% 171 299 299

2/11/2013 3,655 1,434 39.23% 190 339

2/3/2014 4,174 2,116 50.69% 233 950

2/2/2015 4,599 2,183 47.47% 178 879

1/1/2016 6,093 1,630 26.75% 159 7.6

1/31/2016 5,392 1,449 26.87% 169 7.6

2/28/2016 5,379 1,333 24.78% 142 7.3

Broker Update


1/30/2012 489 248 50.72% 14 52

1/28/2013 353 253 71.67% 54 60

9/1/2015 5,591 1,518 27.15% 183 7.7

10/1/2015 5,779 1,274 22.05% 153 7.2

19


Event Invitation/Reminders

Date # Sent # Opened % Open Rate Click-Throughs Fwd Emails Score 2/03.2016 All Brokers Mtg. 603 264 44% 20 8.7 02/11/2016

A Taste of Nostalgia Mixer 4,418 1236 28% 0 6.8 02/11/2016 New Members Welcome

75 34 45% 4 9.1

02/15/2016

ReLaunch

Conference 5,372 87 28% 87 7.2

02/20/2016

Taxes/FHA/ HUD classes 5,341 1403 26% 67 1 7.0

02/25/2016

ReLaunch #2 5,341 1477 28% 57 0 7.0

02/25/2016

ReLaunch #3 5,405 1109 21% 25 1 6.1

Text to Phone Blast

Date # Sent Opted Out

Replied

Directly 02/08/2016 Brokers Mtg. 434 0 2

20

Press Releases, Social Media and Website

Website

Feb-16 Jan-16

Website Page Views

Unique Page

views Page Views

Unique

Page views

Tucsonrealtors.org (home page) 7023 5363 8510 4998

About Us 100 78 156 91

News 62 47 67 52

Education & Events 221 170 240 106

Member Tools 117 86 104 125

Advocacy 16 13 19 19

Affiliates 66 49 84 72

Foundation 25 21 62 42

MLS 656 520 799 465

Consumer Information 28 24 56 43

Become a Member 275 190 371 145

Committees 59 50 62 39

Press

Press Release Feb-16 Feb-15 YTD 2016 YTD 2015

Feb 1 0 2 2 5

Articles for Print Media

Feb-16 Jan-16 YTD 2016

Advertorials –AZ Daily Star 4 4 8

Media Interviews

Feb -16 Jan-16 YTD 2016

AZPM Interviews

Eric Gibbs, John Rosshirt 2 4

KOLD Ch. 13 interview

Eric Gibbs 1 1 Eric Gibbs YTD 2016

Social Media Social Media Feb 2016 Jan-2016 Dec-2015

Facebook: Total Fans 1683 1637 1582

Facebook: Number of Postings 50

Facebook: People Reached 2641

Facebook: Engaged Users 1564 1148 844

Facebook: Total Video Views 163

Total Linkedin Members 783 783 747

Total LinkedIn Followers 417

Total Tweets 13 3 1

Total Twitter Followers 1111 1103 1088

Engaged Users: The number of people who engaged with our Page (includes any click or story created).

21

PRIMARY REALTOR®MEMBERSHIP:

Year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

%Change

Year End

2015 to Feb

'16

%Change

Feb '15 to

Feb '16

2012 3982 4099 4160 4195 4238 4236 4239 4212 4218 4172 4190 4177 -7.85%

2013 4174 4021 4095 4141 4200 4220 4242 4273 4289 4267 4287 4273 2.30%

2014 4283 4171 4257 4304 4353 4382 4410 4438 4454 4448 4472 4481 4.87%

2015 4491 4505 4453 4481 4527 4525 4551 4604 4599 4593 4621 4626 3.24%

2016 4640 4618 -0.17% 2.51%

New Members - 2016: Inactive Members - 2016:

JAN 67 MAY SEP Total JAN 0 MAY SEP Total

FEB 48 JUN OCT New FEB 1 JUN OCT New

MAR JUL NOV YTD MAR JUL NOV YTD

APR AUG DEC 115 APR AUG DEC 1

SECONDARY REALTOR® MEMBERSHIP:

Year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

%Change

Year End

2015 to Feb

'16

%Change

Feb '15 to

Feb '16

2012 66 66 73 77 77 81 84 88 91 93 93 96 -9.09%

2013 100 75 79 84 85 86 89 88 88 95 96 95 -1.04%

2014 93 91 88 92 96 99 101 102 103 103 109 111 16.84%

2015 112 116 109 114 118 118 120 121 129 133 135 136 22.52%

2016 143 123 -9.56% 6.03%

AFFILIATE MEMBERS:

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

%Change

Year End

2015 to Feb

'16

%Change

Feb '15 to

Feb '16

2012 369 374 371 377 402 411 418 420 420 422 422 423 5.98%

2013 434 421 383 401 437 440 444 448 449 453 457 459 8.51%

2014 482 458 430 440 456 460 469 469 475 476 484 485 5.66%

2015 457 463 406 422 428 428 442 448 438 447 444 421 -13.20%

2016 343 335 -20.43% -27.65%

*335 Affiliate Members represent 54 Affiliate firms

TUCSON ASSOCIATION OF REALTORS® MEMBERSHIP STATISTICS

02/29/2016

22

TUCSON ASSOC. OF REALTORS® - Membership Statistics - PAGE 2 -2/29/2016

MLS ONLY BOC SUBSCRIBERS:

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

%Change

Year End

2015 to Feb

'16

%Change

Feb '15 to

Feb '16

2012 306 317 337 348 349 331 323 325 322 277 281 280 -2.90%

2013 292 301 313 321 330 332 327 330 336 309 314 318 13.57%

2014 325 336 339 352 360 367 357 348 344 293 305 344 8.18%

2015 355 370 387 403 411 411 422 408 418 405 411 419 21.80%

2016 430 442 5.49% 19.46%

New BOC - 2015:

JAN 10 MAY SEP Total

FEB 16 JUN OCT New

MAR JUL NOV YTD

APR AUG DEC 26

23

0

2

4

6

8

10

12

14

16

Under 30 30-39 40-49 50-59 60+

Female

Female

0

2

4

6

8

10

12

Under 30 30-39 40-49 50-59 60+

Male

Male

24

0

5

10

15

20

25

30

Under 30 30-39 40-49 50-59 60+

Total

Total

25

MEETING REPORT

Meeting: Property Management Meeting Date: January 14, 2016 Chair: Jason Helfrich Called to order: 10:01 a.m. Attendance: Betty Hannon Jason Helfrich Ginny Huffman Jesus Johnson Colleen Kessler Illa Krasnick Steve Rice Damon Smith April Richards Guest: Heather Dinnen Jackie Kincaid Staff: Christine Sanchez Action Items: Accept the December 17, 2015 Meeting Report as presented. Information Items: Welcome and Introductions Review of the Committee Goal Assignments Forms Subcommittee Update: Meeting today at 3:30pm and Rental Listing and Marketing Agreement is on the Board of

Director agenda for approval. Government Affairs Update: RAPAC challenge for large, medium and small offices. Winner will be announced at the

Installation. Drawing for a 58” Samsung TV. Keith Brann, Town of Marana Engineer was a guest speaker on the 8 homes with settling issues in the Pines 1 Subdivision.

Risk Committee Update: TRID updates, update on the Green Valley Recreation fees and criteria, risks of having short-term rentals such an Airbnb and the tax ramifications to owners who may not be aware.

NARPM Update: Next meeting is January 20 at 11:30am on Protecting Your Business & Preventing Fraud with guest speaker Alan Shultz of BBB Southern Arizona. Review of the 2016 Certified Residential Property Manager (CRPM) classes being held by NARPM.

The committee discussed hosting CRPM classes in the legal and disclosure categories. Discussion of the use of remote showing systems; pros and cons of this type of practice. Is the risk worth the reward and

are you fulfilling your fiduciary responsibility to your client? Is this the right business model for your company? Review of the Landlord Can Limit Occupancy to Two Persons per Bedroom without Violating Fair Housing Laws article

published by AAR. HOA’s may charge a fee of $25 for each new tenancy of a property according to Arizona Revised Statues (ARS) 33-1806.01

Rental property; member and agent information; fee; disclosure. Market trend is busy; properties are being rented. Discussion on what your criteria is in your application process when you have a potential client who has negative history on

prior rentals. Discussion on a renter advertising a rental on MLS without the permission of an owner.

Adjourn: There being no further business, meeting adjourned at 11:28 a.m.

26

MEETING REPORT

Meeting: Property Management

Meeting Date: February 11, 2016

Chair: Jason Helfrich

Called to order: 10:10 a.m.

Attendance: Heather Dinnen Jason Helfrich Jesus Johnson Colleen Kessler

Jacqueline Kincaid Illa Krasnick Steve Rice April Richards

Damon Smith Sophia Herrera

Staff: Christine Sanchez

Action Items:

Accept the January 14, 2016 Meeting Report as presented.

Information Items:

Discussion of having a tenant sign a solar lease with the owner as the secondary signature and the implications that may

arise when the owner is ready to sell their property.

Discussion of Home Warranty Company’s and the committee’s experience with their service and fees.

NARPM will be hosting an Agency class with Steve Urie on February 17; free for members and $35 for non-members and

includes lunch.

AAR and TAR will host the following CRPM Live Steaming Classes; 25 max attendees and the cost is $35 for one or $65 for

both classes on the same day. Registration will be done through AAR and staff will share the information once available.

o a. May 20, 9-12pm, Trust Accounting (Mike Mumford) – Commissioner Standards

o b. May 20, 1-4pm, Fair Housing for the Property manager (Sue Fluke) – Fair Housing

o c. August 19, 9-12pm, Agency (Steve Urie) - Agency

o d. August 19, 1-4pm, Do It Right or Get Heck out of PM (Sue Fluke) – Commissioner Standards

o e. November 18, 9-12pm, Code of Ethics, (Mike Mulvena) – Commissioner Standards

o f. November 18, 1-4pm, Overview of the AAR PM Forms (Sue Fluke) – Contract Law

Discussion of the use of remote showing properties and if committee members have adopted this practice.

Review of “The Airbnb Factor” article published in REALTOR® Mag.

Residential sales are picking up; it was suggested to remind your clients that although you focus on property management,

you also handle residential sales.

Announcements

Adjourn: There being no further business, meeting adjourned at 10:50 a.m.

27

GREEN COMMITTEE MEETING REPORT

Information Items:

Meeting: Green Committee

Meeting Date February 24, 2016

Co-Chairs: Carolyn Minor and Constance Negley

Staff Liaison: Liza Lopez

Next Meeting: April 27 9am

In Attendance:

Constance

Kris Basil

Anita Govert

Gloria Coldiron

Report

Meeting started at 9:10am

Harlow Garden Mixer set for April 21 food sampling (green restaurants) Wine and band and workshops

YPN/set for May 19 we will get sponsors and have tables

Monark Class will be in June Date TBD

TEP Workshop is set for July 14 9am

Divided Green Designation Realtor list all committee members will call on their part!

Next Meeting Next Meeting: April 27 9am

Meeting Adjourned: Approximately 10:15 am

28

MEETING REPORT

Committee: Government Affairs Committee

Meeting Date: February 10, 2016 Chair: Douglas Wright Vice Chair: Called to order: 8:30 am Staff: Steve Huffman Guests: Attendance: William Arnold, Barbara Bathen, lyra Done, Vicki Entrikin, Max Fisher, Jarrett Reidhead, Wyatt Saul, Douglas Trudeau, James Tsighis, Doug Wright, Bill Yarnell, Gabriel Morales Board Action Items: Action Items • M/S Approve expenditure of $2,500 in support of polling for City of Tucson

• Discussion federal court action on Clean Power regulations

• Discussion on City of Tucson budget

• RAPAC Report

• Discussion on City of Tucson Charter Change

• Discussion of Rio Nuevo development activity

• Discussion of Pima County budget

• Discussion of open house signs

• Discussion of A-10 decisions

• Discussion of CAP water issues

Meeting Adjourned 10:30am

29

REPORT: February 11, 2016 Committee: Communications/Outreach Committee

Date: Thursday, February 11, 2016

Chair: LuAnn Kidd

In Attendance: Yasmeen Al-Abdulrahim, Andrea Alvarez , Andee Anthony, Monica Carrillo, Max Fisher Lynn

Hellwig, LuAnn Kidd, Marlo McCartney, Cheryl Terpening,

Absent: Rita Lake

Staff Liaisons: Janet Wood, Liza Lopez

Guest: Steve Van De Beuken

Call to Order: 1:21 pm

1. Approval of Committee Meeting Report: February 11, 2016

2. Guests and Potential Committee Members – Steve Van De Beuken

3. Tucson Clean & Beautiful Project -- -- – Trees for Tucson—Ask the organization for more info about

sponsoring.

4. March Tailgate

a. Sponsors

b. Food trucks – Bella’s Gelato? 80/4oz. servings for $300; Jozzarelli’s Food Truck can provide

corned beef & cabbage, pizza; Sonoran dogs a possibility?

c. Volunteers

d. Looked at the parking lot layout/logistics

5. Support of RAPAC

6. Old Business

7. New Business

Meeting Adjourned

DATES TO BOOKMARK New Member Orientation (11:15 am)

Feb 15:

Committee Meeting Dates (8:15 am)

Thurs: March 10

Events

February 18, Thurs. 5-7pm Membership Mixer: A Taste of Nostalgia -- online registration

February 23, Tue 5:30-7:30pm YPN Pinball Tournament -- online registration

March 17, Thurs. 3-6pm Mad About March St. Patrick’s Day Tailgate -- Reg. coming soon

Classes

February 25, Thurs. 9-12pm The Code the Law & You 3 CE hrs. -- TAR online registration

Meetings

March 2 & 3 Two days 8am Relaunch Conference www.relaunchwith.us

March 23, Wed. 10-12pm Membership Meeting -- TAR Online registration

March 28, Mon. 2pm 59 Minute Meeting Forecast w/Realtor.com economist Jonathan Smoke -- TAR Online reg.

30

REPORT: February 3, 2016

Committee: Marketing / Home Tour

Date: Weds, February 3, 2016

Chair: Wendy Whitehead

In Attendance: Andee Anthony, Nacho Castro, Javier Guillen, Kimberly Keegan, Terri Mossman, Steven Redmond,

Steven Van De Beuken, Aletha Kalish, Janet Wood

Absent: Cyndy Wilson, Steve Rhine, Monwilla Craig

Staff Liaison: Janet Wood

Call to Order:

1. Approval of Committee Meeting Report: Jan. 06, 2015

2. Meeting Location Review:

PF Changs

Buddy’s Grill-Vail

3. Sponsorship Update: Committee discussed a replacement for Paul Cantinella. Wendy will speak to

Steve Rhine.

4. Specialty Tour Update – Kimberly has been asked again about Sahuarita, but we can’t add them in.

5. We will be having a South tour. (Date?) Mt. Lemmon tour on June 10, 2016. The committee would like

to have it catered by an area restaurant in order to support local business. August may have a special

tour. Still time to decide at the next meeting. A downtown tour may be possible for the fall.

6. Tour Submissions Process/Data Management Update: Steve Redmond

7. Website: Steve Redmond

8. Status of workflow diagram per request of CEO Marc – Janet will check on.

9. Eblasts/Member Feedback: Kimberly Keegan

10. Facebook Update: Javier Guillen/Cyndy Wilson

11. Recovery of Tour signs: Wendy Whitehead

12. New Committee Member Search – New member Aletha Kalish

13. Old Business

14. New Business

DATES TO BOOKMARK Committee Meeting Dates (8:15 am)

WED March 2 New Member Orientation (8:30 am– 3:00 pm)

MON February 15

31

REPORT: March 2, 2016

Committee: Marketing / Home Tour

Date: Wed., March 2, 2016

Chair: Wendy Whitehead

In Attendance: Aletha Kalish, Nacho Castro, Kimberly Keegan, Terri Mosman, Steve Van De Beuken, Wendy

Whitehead, Cyndy Wilson

Absent: Andee Anthony, Monwilla Craig, Javier Guillen, Steve Redmond, Steve Rhine,

Staff Liaison: Janet Wood

Call to Order: 8:20am

1. Approval of Committee Meeting Report: Feb. 03, 2016

2. Meeting Location Review:

PF Changs

Buddy’s Grill-Vail

3. Sponsorship Update: Wendy – Need more as well as new sponsors for the next quarter. Replace Paul

Cantenella.

4. Specialty Tour Update

5. Tour Submissions Process/Data Management Update: Steve Redmond

6. Website: Steve Redmond – Wendy will check with him.

7. Status of workflow diagram per request of CEO Marc

8. Eblasts/Member Feedback

9. Facebook Update: Javier Guillen/Cyndy Wilson

10. Recovery of Tour signs: Wendy Whitehead

11. New Committee Member Search—Committee is comfortable with the current number of

Committee members.

12. Old Business

New Business: The Committee would like a new redesign of the Tour Calendar with the “Submit by Date”

Removed. Wendy would like a calendar/schedule of the upcoming Member Orientation, so they can speak

to the group. Steve Van De Beuken volunteered as well as Aletha Kalish. Aletha Kalish and Cyndy Wilson

need name tags.

Meeting adjourned.

DATES TO BOOKMARK Committee Meeting Dates (8:15 am) WED April 6 Wed May 4 New Member Orientation (8:30 am– 3:00 pm)

MON March 21

Annual Membership Meeting (10:00 am -12:00 pm)

WED: March 23

MON: March 28 59 Minute Meeting (2:00 – 2:59 pm) Guest: Realtor.com economist Jonathan Smoke 32

MEETING REPORT

Committee: REALTOR® Risk Management


Chair Robin Willis

Vice Chair Nick Coury

Called to Order: 3:02 p.m.

Attendance: Sue Cartun Nick Coury Robert Hallberg Ginny Huffman

Peter Lehman John Mijac Lupita Mitz Ralph Roehrich

Joette Schenck Matthew Tennyson Cheryl Terpening Hal Timinsky

Wendy Trush James Tsighis Laury Watson Barbara Wilson

Diana Zarate Henry Zipf


Action Items:

Accept the January 12, 2016 minutes as presented

M/S/C: Recommend to the TAR Board of Directors to remove the Critical Date Worksheet from the TAR Library.

M/S/C: Recommend James Tsighis bring forth the issues of aging population, agents not disclosing affiliated business

agreements or other agreements with vendors/affiliates with their broker and whether or not an Affiliated Business

Arrangement Disclosure is required by Federal Law for agents (within brokerages) who have such arrangements with

vendors/affiliate businesses to the state and national level.

Information Items:

Vice Chair Coury is filling in for Chair Willis.

Review of the Forms Subcommittee recommendation to remove the Critical Date Worksheet from the TAR Library.

Rationale for removing the form is AAR has created a Critical Date List that will be available on the AAR Library.

Illa Krasnick and Nick Coury are working on a safety class; more information to come. Suggestions on marketing ideas were

to host a class at the EXPO, focus on events members attend, offer free pepper spray.

Update on TRID:

Lenders are sending documents to the title company within 20 days.

Issues have occurred more frequently with wealthy clients; they have several bank accounts and move money between

accounts which may pose an issue.

Requests have been made to move closing dates up.

The consensus is that TRID has settled since January and the process has been manageable overall.

Discussion on Affiliated Business Agreements that may be in violation by an agent and their team; brokers may be unaware

of agreements they never see that they are ultimately responsible for.

Discussion on issues that may arise when the agent is the seller of a property and has requested to use a specific Title

Company.

A request to have a CFPB speaker at the March meeting was denied.

Discussion on insurance companies dropping their coverage on homes with no fire protection. Staff will forward the online

Northwest Fire interactive map to the committee: www.northwestfire.org/about/interactive. It was mentioned it was the

buyers due diligence to ensure the property has the proper fire protection. Vice Chair Coury will write a Risk Tip on Fire

Protection. It was suggested to add the Northwest Fire District, Rural Metro, etc. link(s) to District Map(s) to the Property

Verification Resource

Open Forum:

Discussion on the aging population and request for information on how to deal with situations that may arise.

Assistance that can help to advise on a broker level. Discussion on a guest speaker such as an attorney, SRES

Instructor or Pima Council on Aging Representative. Staff will inquire with the Education Department on options for

hosting a class with a panel to equip an agent with some best business practices in these situations.

Discussion on the harsh tone of the emails received for an MLS violation. It was suggested to modify the letter and

utilize it as an educational tool. Henry Zipf has agreed to discuss the issue with MLS.

Announcements

Adjourn: There being no further business, the meeting adjourned at 4:13 p.m.

33

http://www.northwestfire.org/about/interactive

MEETING REPORT

Subcommittee: Forms


Chair: John Mijac

Called to order: 3:36 pm

Attendance: Tea Honkanen John Mijac John Olberding Steven Rice

Sue West Catherine Wolfson


Action Items:

Accept the October 8, 2015 meeting reports as presented.

M/S/C Approve revising line 25 of the Disclosure/Notification to read: Buyer Seller Agent of the Buyer Seller

M/S/C Recommend to the Risk Committee to remove the Critical Date Worksheet from the TAR Library.

Information Items:

Introductions

Review of the December 8, 2015 Risk Committee meeting report; it was recommended the subcommittee consider creating

an Unrepresented Buyer Form.

Review of the January 12, 2016 Risk Committee report, no recommendations for the subcommittee.

Unrepresented Buyer Form:

Committee members were asked to bring an Unrepresented Buyer Form they may use at their brokerage.

John Olberding has agreed to contact Texas and Minnesota to inquire about the form they use.

Chair Mijac has agreed to inquire with AAR Legal Counsel Scott Drucker for any knowledge about forms other states

might use.

Sue West and Catherine Wolfson have agreed to inquire with Martha Apple about the form they use.

Review of the 2016 forms that will be reviewed and/or revised: Disclosure/Notification, Mold Disclosure, Property

Verification Resource and Referral Agreement – Broker to Broker.

Review of the Property Verification Resources

Staff will add the prefix to all phone numbers.

The following committee members have agreed to verify if the links and phone numbers in the following sections are

correct:

John Olberding: Property Information, Additions/Improvements/Permits and Assessments

Tea Honkanen: Flood Plan, Road Maintenance, Zoning, Cable TV/Internet, Electric, Fire Protection

Sue West and Catherine Wolfson: Schools, Taxes and Wood Infestations

Steve Rice: Garbage, Gas, Septic, Sewer, Telephone and Water

Staff will forward the form to the committee.

Review of the Disclosure/Notification

The committee agreed to add Agent of the Buyer Seller to line 25; rationale is it may be disclosure for the agent

and not the client.

Staff will make the changes and present to committee at the February 11 meeting.

Review of the request to remove the Critical Date Worksheet from the TAR Library. AAR has created a Critical Date List and

will become available on zipForms. The committee agreed to send a recommendation to the Risk Committee to remove the

form.

Review of the 2016 meeting dates.

Adjourn: There being no further business, the meeting adjourned at 4:12pm.

34

MEETING REPORT

Subcommittee: Forms


Chair: John Mijac


Attendance: Tea Honkanen John Mijac Steven Rice Janet


Action Items:

Accept the January 14, 2016 meeting reports as presented.

Information Items:

President Gibbs has issued a RAPAC Challenge for all committees; 100% investment from all committee members by June

2016.

Review of the Risk Committee Meeting Reports:

TAR Board of Directors approved the Airport Disclosure and Rental Listing and Marketing Agreement at their January 21

meeting.

The Risk Committee approved to the remove the Critical Date Worksheet from the TAR Library.

Review of the revised Disclosure/Notification Form; Steve Rice will take the form to the Property Management Subommittee

and inquire if they would like Landlord and Tenant added to lines 1, 2 and 25.

Review of the Unrepresented Buyer Forms from Utah, Minnesota and Texas. Chair Mijac has agreed to draft a form and

present at the next meeting. Steve Rice has also agreed to run the need/desire for the unrepresented buyer form to the

Property Management Subcommittee.

Review of the Property Verification Resource form; staff will revise based on feedback received from subcommittee

members and forward to Chair Mijac for review. Chair Mijac will then forward to the subcommittee for review. Staff will add

the Northwest Fire Interactive Map link.

Next meeting has been changed to March 3.


35

MEETING REPORT

Subcommittee: Forms

Meeting Date: March 3, 2016

Chair: John Mijac


Attendance: John Mijac John Olberding Janet Pipes Catherine Wolfson


Action Items:

Accept the February 11, 2016 meeting reports as presented.

M/S/C: Recommend the Risk Committee approve the Unrepresented Buyer/Tenant Disclosure form.

M/S/C: Recommend the Risk Committee approve the revised Property Verification Resources form.

Information Items:

Review of the Risk Committee meeting report:

Recommendation to remove the Critical Date Worksheet from the TAR library will be presented at the March 17 Board

of Directors meeting.

Suggestion to make Safety classes an annual requirement w/3 hours of continuing education; Chair Mijac will bring the

suggestion to the Arizona Association of REALTORS® Risk Committee.

Review of the Unrepresented Buyer Disclosure form created by Chair Mijac

Add Tenant to the title

On IV, remove ministerial

Under acknowledgement, add tenant

Review of the revised Property Verification Resources

Staff will email the Mold Disclosure to the committee to review and make recommended revisions at the April 14 meeting.

It was suggested committee members bring their Referral Agreement – Broker to Broker forms to reference when we revise

the TAR form.

Announcements

Next meeting is scheduled for April 14.


36

Committee: MLSSAZ Board of Directors


Chair: Cathy Erchull, President

Call to Order: 3:03 PM

Attendance: Annie Barmore Gary Brauchla Kimberly Clifton Cathy Erchull

Baron Gauna Judith Grammond Kevin Kaplan Pam Ruggeroli

Patrick Sedillo Cheryl Terpening Henry Zipf

Legal Counsel: Heidi Brent

Staff: Sean Murphy Andrea Ballard Christine Sanchez

Action Items:

M/S/C: Confirm the Director appointments of Annie Barmore and Patrick Sedillo.

M/S/C: Move to approve the January 11, 2016 minutes.

M/S/C: Move to uphold the Subscriber fine of $500 for Non Securing of Property and allow Subscriber the

following payment plan: First payment made by October 1, 2016 and payments completed by

December 31, 2016.

M/S/C: Move to approve the appointment of Brad Sensenbach as a member of the Technology Taskforce.

M/S/C: Move to approve the MLS Executive Committee’s recommendation for MLSSAZ to extend the Supra

Contract for a term of six years and an expenditure not to exceed $600,000.00 to purchase lockboxes

for the exchange.

M/S/C: Move to approve the MLS Executive Committee’s recommendation for MLSSAZ to extend the FBS

FlexMLS Contract for 36 months (May 1, 2016 – April 30, 2019) at the current rate of $5.75 per

month per subscriber.

Information Items:

Introductions

Effective January 1, 2016, Sean Murphy’s title was changed to Executive Vice President of Multiple Listing

Service of Southern Arizona.

Review of the New Member/Subscriber report; staff will research why a member is on the list without a

company listed.

President’s Report

o The Market Summary, Membership Counts and Inventory Trends Reports are available in the agenda

packet for review.

Committee Reports

o Standards – Cheryl Terpening

First meeting attended as board liaison.

Reviewed violations and assessed fines accordingly.

o Technology – Kevin Kaplan

The task force continued to work on modifying the MLS Area Boundaries.

Vice President Update – Sean Murphy

o President Erchull appointed a task force to review the governance section of the bylaws;

recommendations will be presented at the next meeting.

o Review of the Market Share Report; available on the website. Sean Murphy will forward the Market

Share Report to the board.

o MLSSAZ Instructor, Jeni Huber is creating a new class on the use of the lockbox system.

o Regional Advisory Council has scheduled their first meeting.

Review and discussion of the MLS Standards fine appeal.

President Erchull will consider a task force to review a payment plan option for fines issued by the

Standards Committee.

Antitrust Presentation by Legal Counsel Heidi Rib Brent.

Sean Murphy presented the Supra Contract Renewal/iBox Upgrade and four proposed options.

Treasurer’s report presented and filed for audit.

TAR Board of Directors Report – Pam Ruggeroli 37

o President Gibbs approved a twelve member appointment to the Tucson REALTORS Charitable

Foundation Board of Directors. Tom Sloyan appointed as President, Lisa Suarez - President Elect, Dea

Hinrichs – Vice President and Robert Hatch – Treasurer. Fisher House was named their charity of

choice for the Softball Tournament on April 30.

o 2016 Legislative Policy Manual and Statement of Investment Policy Objectives and Guidelines were

approved.

o Proposed bylaws language to Article XIX, Section 2 and Article XIII, Section 5 will be presented to the

membership for vote.

Discussion of correspondence agents receive from Clareity Security; if agents do not acknowledge the

messages, they will continue to receive correspondence and each correspondence will progressively

change in tone; notify agents to contact MLSSAZ to address the issue.

Next meeting is scheduled for April 26, 2016.

Meeting Adjourned 5:16 pm

38

MEETING REPORT

Meeting: Small Broker Council


Chair: Cheryl Terpening

Called to Order: 11:35am

Information Items:

Introductions

Meetings will be held on the 4th Tuesday of each month at 11:30am.

Update on Multiple Listing Service of Southern Arizona (MLSSAZ)

Conversion expected to be complete in the 3rd quarter.

Supra contract is being negotiated.

Committee Updates

Marketing & Home Tour: Tour will be held in Vail at Buddy’s Grill at 8:30am on Friday.

MLS Standards: Meeting on February 3 at 1:30pm.

Property Management: Discussion on Self Showing Properties; NARPM is hosting classes to obtain your Certified

Residential Property Management Certification, first class is on February 17.

Government Affairs: Review of the Office Challenge Championship and Make an Assist Challenge. President Gibbs has

announced a Presidential Challenge to all committees on achieving 100% participation in RAPAC by June 2016.

Education: WCR is hosting a Credit Road Map class with Patrick Ritchie on March 11 at Title Security Office from 9-

12pm. Cost is still being finalized. TAR and WCR will be hosing Effective Negotiating on April 27 with Instructor Joann

Fossland, cost is $60 for an all-day class. If you are attending the AAR Spring Convention, WCR will be hosting a

Diversity Night Out in Prescott on March 28 at 6:30pm.

Risk Update: Update on Green Valley Recreation Fee and Categories. Recommendation was made to the MLS

Standards Committee to review the Rules and Regulations regarding the current rule which state that a listing must be

delivered to MLS or input directly into the MLS system within two days after all necessary signatures of the Sellers have

been received by the Listing Broker. Consider revising the rules to 2 days from the commence date on line 6 of the

Listing Agreement.

February 9: Broker Meeting on February 9 at 10am; update on 2016 Broker Meetings, 59 Minute Meetings, RAPAC,

MLSSAZ and more.

February 22: Commissioner Connection with Commissioner Lowe at 8:30am

Chair Terpening provided the Arizona Association of REALTORS (AAR) Broker/Manager Quarterly and articles posted on their

website; reminding the council of the resources provided at AAR.

Discussion of solar leases and an owner having a tenant sign the lease as the primary and owner signs as secondary and

the issues that may arise in selling the property.

Discussion of showing a property and what to do when a neighbor discloses negative information on the property. It was

suggested to contact the listing agent and inform them of the neighbor’s behavior.

Mike Dalton of Stewart Title will be invited as a speaker to train on SureClose, an online transaction management system.

A speaker who creates secure servers for email for a nominal fee will be invited to share his product with the council.

Adjourn: There being no further business; the meeting was adjourned at 1:03pm

39

MEETING REPORT

Meeting: Small Broker Council


Chair: Cheryl Terpening

Called to Order: 11:30am

Present: Nacho Castro Jim Chumbler Martin Eggers Ginny Huffman

Peter McGinnis Susan OliwoOlabode Sandra Sarah Joette Schenck

Cheryl Terpening Ellen Golden

Action Items:

M/S/C Approve the January 27, 2016 Meeting Report as presented.

Information Items:

Welcome and Introductions

Guest Speakers: Mike Dalton of Stewart Title and James Riley of JNR Networks

Presentation on secure servers for email accounts.

Committee Updates

Education: WCR is hosting a Credit Road Map class with Patrick Ritchie on March 11 at Title Security Office from 9-

12pm, cost is $15 for members and $25 for non-members and 3 CE hours of Legal.

Marketing & Home Tour: Tours continue to be successful.

Property Management: Classes for the CRPM Certification are being held by NARPM, TAR and AAR.

Risk Update: Discussion on the aging population, insurance companies who will no longer provide service to homes

without fire protection and affiliated business agreements or any agreement in violation by a team and their members

that a broker may never see. Staff will send via email the interactive map to the council.

Standards: Patterns emerging after a full cycle.

Review of the Commissioner Connection with Commissioner Lowe on Monday, February 22. Updates on ADRE Statistics,

Legislative updates and TRID panel; issues are with the larger and out of state lenders.

AAR has a Tech Hotline that is available and free for all members to utilize; take advantage of the service.

TAR sent a Notice of Bylaws Change that will be voted on at the Membership meeting on March 23 at 10am. Participant

meeting will follow immediately.

Adjourn: There being no further business; the meeting was adjourned at 12:06pm

40

MEETING REPORT

Committee: Young Professionals Network Meeting Date: February 4, 2016 Chair Max Fisher Called to Order: 2:10 pm Attendance: Jessica Alvarez, Max Fisher, Marco Flores, Diana Zarate, Andrea Alvarez, Adam Donaldson, Juan JJ

Curiel, Sierra Hardy, , David Aguilar, Rachel Rozzo, Alex Kairoff Staff: Aaron Reid, Action Items:

Approve January Meeting Report

Charity Efforts- Fundraising For Tu NiDito

Charity Efforts- Volunteering/ Sponsor for YMCA Veterans Ball Nov 11,2016

Information Items:

Welcome and introductions.

Charity Presentations for Tu NiDito and YMCA- Veterans Ball

Boys and Girls Club- volunteering at The Events and at centers (TBD)

Charity Efforts- Fundraising For Tu NiDito o Celebrity Bartending at Downtown Kitchen and Cocktails o Possbily bar tenders- Vivian Boogie, John Mijac, Sue Carton, Laura Mance, Jonathan Rothchild, Ricky

Abud, Ray Desmond, Jeff Murtaugh, Marc Lewbowitz, Paul Volpe, Tom McNamara

Tee Shirts- Navy Blue with White YPN Logo

Committee Reports o Communications- Andrea Alvarez o Risk- Diana Zarate o Nominations- Marco Flores o TAR Board of Directors- Jessica Alvarez

Water Balloon Fight/ BBQ Summer Event (TBD)

Adjourn 3:15 2016 Calendar of Events

Jan- no events

Feb- YPN Pinball Tournament (RAPAC) MAR- Boys and Girls Club (TBD)

APR- Education Class/ The Event MAY- YPN/ Green Mixer

JUN- Celebrity Bartending (TBD) JUL

AUG SEPT TYP/ YPN Mixer

OCT- PINK Party (TBD NOV- Broker Challenge RAPAC (TBD)/ Veterans Ball (Nov 11th)

DEC- End of Year Mixer (TBD)

41

MEETING REPORT

Committee: Young Professionals Network Meeting Date: March 3, 2016 Chair Max Fisher Called to Order: 2:10 pm Attendance: Jessica Alvarez, Max Fisher, Marco Flores, Diana Zarate, Adam Donaldson, Mikey Bachelier, Bryan

Alvarez Staff: Aaron Reid Action Items:

Information Items:

Welcome and introductions.

PINBALL Recap- Thursday was an issue. All events on Thursday if Possible.. NO Alcohol… Move events to place that can host with alcohol available

Boys and Girls Club- volunteering at The Events sign up https://bgctucsonvolunteering.wufoo.com/forms/the-event-2016-volunteer-form/

Charity Efforts- Fundraising For Tu NiDito- Moving the date to September o Celebrity Bartending at Downtown Kitchen and Cocktails o Possbily bar tenders- Vivian Boogie, John Mijac, Sue Carton, Laura Mance, Jonathan Rothchild, Ricky

Abud, Ray Desmond, Jeff Murtaugh, Marc Lewbowitz, Paul Volpe, Tom McNamara, Adam Stewart, Eric Gibbs

o How to get the invites out? Emails, Letters, Personal invites/ Office Visits

Committee Reports o Risk- Diana Zarate- Possible Safety Class

Send Aaron Open House info, try to stop at an open house of other YPNers (take pictures for Facebook)

ANTI Trust Quiz- 6 out of 8

Adjourn 2:45 2016 Calendar of Events

Jan- no events

Feb- YPN Pinball Tournament (RAPAC) MAR- Boys and Girls Club (TBD)

APR- Education Class/ The Event MAY- YPN/ Green Mixer

JUN-) JUL

AUG SEPT Celebrity Bartending (TBD

OCT- TAR & YPN PINK Party (TBD NOV- Broker Challenge RAPAC (TBD)/ Veterans Ball (Nov 11th)

DEC- End of Year Mixer (TBD)

42

https://bgctucsonvolunteering.wufoo.com/forms/the-event-2016-volunteer-form/

https://bgctucsonvolunteering.wufoo.com/forms/the-event-2016-volunteer-form/

2/24/2016

1

* Heidi Rib BrentMonroe McDonough Brent & Morales, PLLLC

2500 N. Tucson Blvd., Suite 140Tucson, Arizona 85716

(520) [email protected]

ANTI TRUST

Sherman Anti-Trust Act

of 1890

Prohibits “contracts, combinations or conspiracies by two or more persons in restraint of trade.

REALTOR ® Association, by definition, is a “combination.”

Enforced by Department of Justice and Federal Trade Commission or Arizona Attorney General.Costs of defense high and damages are trebled, plus attorneys fees!

Standard of Proof: any agreement or conspiracy in restraint of trade is illegal.

Price-fixing and boycotting = “per se” violations.

No need to prove “anti-competitive effect.”

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2

Price-fixing = agreement between two or more competing real estate professionals to raise, loweror even stabilize commissions.

Boycotting = conspiracy between two or more competitors to drive a competitor out of the industry.

Also:Customer allocation; Territorial division; or Illegal tying arrangements (MLS membership only if member of TAR).

Can an Association Board be sued if acted

in good faith?

Yes!But it would be covered by Errors & Omissions, right?

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3

There are limits to antitrust insurance – treble damages and attorneys’ fees may exceed it!

U.S. v. NAR*Filed in 2005

*2008 Consent Decree

*For 10 years “An annual program for NAR Member Boards and their counsel that includes a discussion of the antitrust laws (as applied to Member Boards) and this Final Judgment.”

*All MLSs must adopt the VOW Policy and Rules

*NAR must direct MLSs to correct any application, adoption, or enforcement of VOW rules that violates the Final Judgment, and deny insurance coverage from an MLS that fails to do so promptly.

*NAR must provide quarterly reports to DOJ copies of any complaints of such violations it receives

*An MLS may not prohibit or restrict electronic transmission of property listing information that may be provided to consumers in other way, and may not “unreasonably disadvantage or discriminate against” brokers in their use of VOWs to provide information to consumers.

VOW Compliance:

*“Participation Rule”: “actively endeavor”… “to list real property of the type listed on the MLS or to accept offers of cooperation and compensation…”

*The test is effort; not success

*MLSs must apply enforcement in uniform manner

*VOW policy continues after 10 years; it just ends the reporting program

This year’s Antitrust Litigation:

Metro. Reg’l Info Sys. v. Am. Home Realty Network

(MD. July 2015) copyright violation v. antitrust violation settled in favor of MLS with penalties to AHRN

North Carolina State Board of Dental Examiners v. FTC

(U.S. Supreme Court 2015) states cannot be sued for antitrust violation but Boards are not protected unless enforcing state policy and closely supervised by state

*NAR online quiz:

http://www.realtor.org/rmoquiz2.nsf/antitrustquiz?openform

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4

*True or False

1. Two competitors in my market asked me to cooperate with them in setting a “standard” commission for the area. I refused, but subsequently started charging the same rate that my competitors suggested. Because I didn’t overtly agree to participate in fixing, I am not part of a conspiracy.

*True.

But your actions are extremely risky. An offer to conspire on uniform competitive practices, followed by conduct consistent

with the acceptance of that offer, is sufficient to violate antitrust laws and can be sufficient evidence to persuade a

judge or jury that you participated in the conspiracy, even if you did not. Since you didn’t agree to the conspiracy you are,

technically, not a part of it. But since your actions are consistent with the agreement, a judge or jury still may

conclude that you are a party to the agreement. The best way to avoid participation in an illegal conspiracy is to openly reject

and repudiate any offer to conspire and to be sure that your subsequent conduct does not reflect participation.

2. Even though my salespeople are independent contractors, I may establish the commission rate for my company and require salespeople to charge that rate.

*True or False

*True.

A broker may require salespeople working as independent contractors to abide by the company’s

commission rate without violating any antitrust laws. An illegal price-fixing agreement must be among different “economic actors,” that is, parties who

have their own economic interests and are not associated with the same company.

*True or False

3. Brokers who agree not to cooperate with another company, such as by not showing that company’s listings, do not violate antitrust laws if they enter into that agreement because they consider the company’s aggressive “high-tech” marketing techniques to be unethical.

*False.

It doesn’t matter why competitors agree to engage in a “group boycott” of a particular company, it’s an illegal boycott nevertheless. Competitors may choose to not

cooperate with another company that they consider to be unethical – or for any reason whatsoever (but subject to

their fiduciary and fairness duties to clients and customers) – as long as they do so acting on their own, unilaterally. If

they choose to not cooperate with another company in agreement with other firms, they violate the antitrust laws.

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*True or False

4. The best way to persuade sellers that they should enter into an exclusive-right-to-sell agreement with you is to tell them that MLS members have an “informal understanding” to show buyers exclusive-right-to-sell listings first.

*False.

Stating that MLS members have an “informal understanding” about properties with exclusive-right-to-

sell agreements could be understood by the seller to mean that there is an informal agreement – which would be an

illegal conspiracy. An “informal agreement” is just as illegal as a written agreement that all parties sign.

Participants in an antitrust conspiracy almost never put their agreement in writing, but that merely makes the

existence of the agreement, and the parties to it, a bit harder to prove. It is an unlawful agreement nevertheless.

*True or False

5. My company benefits from MLS participation, but we don’t want to pay a cooperative commission split to real estate companies that offer only nominal compensation on their listings, which we think they include simply so that their listings are shown on REALTOR.com and other public real estate web sites. But if we decide to offer them the same amount of compensation that they offer us, we’ll be breaking the law.

*False.

A company may offer any other company any commission split it chooses, as long as it determines to do so on its own and advises

the other company privately and in advance, such as by sending a letter to the company. A commission split that differs from what is

offered in the MLS to all companies generally may be referred to as a “punitive split.” However, as long as these commission splits

are determined and offered unilaterally and not in agreement with other firms, antitrust laws do not prohibit them. This is true even

if a number of companies decide to offer a certain company the same split that it offers to them, with the result that they all offer

the same split to that company. As long as each company can demonstrate that it determined to offer a different split

unilaterally and without discussion or agreement with other firms, it is not illegal under the antitrust laws.

*True or False

6. Antitrust price-fixing rules do not allow a real estate company to engage in a public advertising campaign that highlights the commission rate it charges to consumers.

*False.

The prohibition on price fixing forbids agreements among competitors on prices, such as real estate listing commission rates,

including commission splits. The law does not preclude a competitor who establishes its commission rate unilaterally and without agreement with other companies from advertising that

commission rate. The law also allows that competitor to engage in competitive advertising, in which the company explicitly compares

its stated commission rate to the rates publicly promoted or advertised by other firms, provided that the advertising was truthful

and not misleading. In fact, the policy underlying antitrust laws –promotion of vigorous and healthy competition – would tend to favor

and encourage such comparative advertising since it helps consumers easily compare and contract prices offered by various

companies.

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6

*True or False

7. Classified and display advertising rates in a local newspaper have increased substantially, which hurts all the real estate companies in town. Yet, no company is willing to stop advertising for fear of losing clients and customers to their competitors who continue to advertise at the high rates. To pressure the newspaper to reduce rates, which would benefit the companies and consumers, the real estate companies may agree that they will stop advertising unless and until the paper complies.

*False.

This is a classic example of a group boycott – an agreement among competitors to not do business with a particular third party. This group boycott has the anticompetitive effect of

eliminating the opportunity for companies to try to attract clients and customers by advertising in the newspaper. The very fact that no company is willing to stop advertising unless all others

agree to do so illustrates this anticompetitive effect. The firms are unwilling to lose the “competitive advantage” of advertising

unless others agree to do the same. The fact that the agreement may have some beneficial effects for consumers – even if true –

will not save this agreement from being unlawful.

*True or False

8. If one of my salespeople participates in a price-fixing discussion, my company can be held liable – even if I have no personal knowledge of the salesperson’s conduct.

*True.

Just as ignorance of the law is no excuse, brokers’ ignorance of their salespeople’s conduct is no defense to an

antitrust charge. A brokerage company will be held liable for the conduct of its salespeople whether or not the

principal broker was personally aware of their conduct. To safeguard against antitrust violations, brokerages should

adopt a written antitrust compliance program, distribute it to every employee and independent contractor, and review

it with everyone twice a year.

How did you do?

or

*Danger zones:

*Membership restrictions – full v. part time

*Standard setting – must be financially stable

*Info exchange programs – limiting information to certain size or types of offices

*Committee meetings vulnerable to allegations of illegal activity –be alert to commission setting, listing policies

*NEVER: Purchase contract – commission shall be X% of sales price

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Policy #4: Anti-Trust Compliance

The Tucson Association of REALTORS® has not and will not establish or maintain fixed or

recommended compensation rates. Compensation is a matter of negotiation between the

parties (the principal and the broker) and the Association will not interfere in those

negotiations or inhibit in any way the freedom of the parties to negotiate by imposing bylaw

provisions, recommended schedules or sanctions on members.

Company Policies. Members shall not discuss with any competitor individual company

policies relating to competitive policies, pricing or related types of sensitive

information, including (a) commission levels, fees, business expenses or other

business information or policies that would allow or encourage price fixing or

maintenance; (b) bidding strategies either in general or for speci fic properties or any

other information that would allow or encourage bid rigging; (c) a firm’s competitive

business decisions, including its policies regarding dealing with those firms offering

different business models; (d) policies regarding the duration or types of listing

agreements the firm will enter into or the form of compensation the firm will accept or

negotiate; (e) the compensation offered or paid to a firm’s agents or employees; (f)

plans concerning any proposed or existing customers, clients or territories; (g) any

other actions that might be construed as concerted attempts to restrain competition,

including joint attempts to control or affect prices, market conditions, marketing

practices, customer choice, or the like.

REALTOR® Association Membership. Membership in TAR is open to any individual or

entity meeting the membership qualifications set forth in the bylaws of the

association, without regard to the type of business models employed by its company.

No member shall influence the leadership of TAR that membership be limited to

companies practicing particular business models, or that membership be denied to

companies or members practicing business models with which the member is in

competition or with which the member is unfamiliar or uncomfortable. Members shall

take no action to influence the business conduct of customers or other members

towards such competitors.

Conduct of Meetings. All TAR meetings will be conducted in full compliance with

antitrust laws. Discussion of any topic suggestive of an intent or agreement to restrict

competition or fix prices shall be improper. Among such topics and discussions are:

Discussions of individual company policies and practices;

Criticism of another company’s practices or of any particu lar business model; and

Suggestions that TAR exclude from membership or participation those who practice

any particular business model or engage in any unfamiliar or innovative activity or

practice. Despite the fact that TAR counsel and staff are well versed in antitrust

matters, the presences of counsel or staff at a meeting should not invite discussion of

matters that violate the letter or spirit of this policy or the antitrust laws. It is the

responsibility of each member in the first instance to avoid raising improper subjects

49

for discussion. However, if discussion of any inappropriate topics occurs at any

meeting, all members present should openly disassociate themselves from such

discussions, and if the discussions do not end immediately, the meeting should be

brought to a prompt adjournment by the person in charge of the conduct of the

meeting. Committee chairs and others conducting meetings will find that adherence to

prepared agendas for all TAR meetings will reduce the likelihood of inappropriate

discussions.

Informal Settings. Members should also be aware that informal or social settings are

inappropriate for discussion of the topics described in this policy, and that casual

comments – even those made in jest – might have serious antitrust implications.

Enforcement Policy. This policy statement has been prepared to assure that TAR

members, and especially TAR volunteers in TAR and other REALTOR® association

meetings, are aware of their obligations under antitrust law. Consequently, members

conducting or participating in meetings of any REALTOR® association shall see to the

strict enforcement of this policy. Volunteers and participants may be required, as a

condition of participation on TAR committees, work groups, task forces, leadership

groups, governing bodies or other groups affiliated with TAR, to execute a copy of this

policy to affirm their acceptance of its principles and agreement to comply with its

terms. Members with questions about antitrust issues should contact competent

advice in all cases involving specific situations as they arise, or when in need of

guidance.

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