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Consumer Website:www.marylandhomeownership.com
VOLUME XLV Number 6 NOVEMBER 2012
The Maryland Association of REALTORs® www.mdrealtor.orgThe Voice for Real Estate® in Maryland
MAR MEMBERSHIP BENEFITS
Your Future is our Business
6 16
REALTOR®
TOOLKIT
MEDIATION
SERVICES
HEALTH INSURANCE
ALL MEMBER
WEBINARS
LEADERSHIP
ACADEMY
MAR Benefits
special p
ull-out s
ection
19
2012 MAR Annual Conference & Awards
2012 Statewide Forms Review
FREE
LEGAL
HOTLINE
MORE
DISCOUNTED
BENEFITS
We Don’t Just Claim to be Global…
Because success results from who and what you know, maximizingthe strength of Coldwell Banker’s world-renowned global networkaffiliations to reach affluent buyers is essential in today’s internationalmarket. Connect with our network of 85,000 associates at 3,100offices in more than 50 countries to showcase your homes to buyersaround the world.
� Coldwell Banker dedicates unsurpassed resources to developing
powerful online partnerships and international alliances.
� With our incredible marketing reach, your listings are showcased
to over 15 million buyers every day on 550+ high-traffic websites.
� Our CBmove.com properties are viewed by international visitors
from 153 countries.
Your homebuyers and sellers get a distinctive marketing edge with Coldwell Banker’s extensive global reach and strong alliances, unparalleledby any other brokerage.
Coldwell Banker® Has International PresenceCompetitors Can’t Match
If you’d like to work with the best and brightest, visit CareersCB.com.
©2012 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell BankerLogo, Coldwell Banker Previews International, the Previews International logo and “Dedicated to Luxury Real Estate” are registered and unregistered service marks owned by Coldwell Banker Real Estate LLC. 5948BAL_09/12
6129_MD Realtor Ad REV4_Layout 1 9/27/12 3:46 PM Page 2
www.mdrealtor.org
1MARYLAND REALTOR®
November 2012
RAISING THE BAR for REALTOR® Professionalism
As REALTORS®, we are sworn to abide by the NAR Code of Ethics. Beyond ethics, however, is acting professionally with all parties through a transaction. Good business practices are not only essential to a smooth process. They build good relationships with clients and with fellow REALTORS®, which can lead to more efficient future transactions and even future referrals, as well as more public respect for our profession. In short, professional behavior enhances your personal reputation and your business.
This month, MAR is launching an initiative to encourage all Maryland REALTORS® to become more conscious of their professional behavior and that of their colleagues. The program emphasizes basic good practice, common sense guidelines, and other resources to help new and veteran REALTORS® in their dealings with each other and the public.
We’re introducing the program through a new ‘online’ section that can be accessed from the banner on the homepage of mdrealtor.org. It will feature videos, case studies, and a contest to test your “professional best practices.” An interactive Q & A of actual events and “how tos” is in the planning stages.
We hope these efforts will raise the bar of professionalism for all of us. If you have questions, comments or suggestions, please send them to me at [email protected].
BENEFITS OF MEMBERSHIPCheck out the center spread in this issue. It’s devoted to all the benefits of your MAR membership—including an array of affinity partners from national companies.
ANNUAL CONFERENCE/INDUSTRY AWARDSCongratulations to all our industry award individual and local board recipients. Please take a moment to read profiles for JoAnne Poole and Iona Harrison, awardees of the 2012 Life Achievement award. They join the prestigious group of previous winners, who have devoted their outstanding careers to serving our profession and our public.
Did you attend our Annual Conference? Take a look at the photo spread beginning on page 6. And don’t forget to save the date for the 2013 Annual Conference and EXPO, September 9-11.
President’s PerspectiveC A R LT O N J . B O U J A I , J R .
RAISINGBARthe
for REALTOR® Professionalism
We Don’t Just Claim to be Global…
Because success results from who and what you know, maximizingthe strength of Coldwell Banker’s world-renowned global networkaffiliations to reach affluent buyers is essential in today’s internationalmarket. Connect with our network of 85,000 associates at 3,100offices in more than 50 countries to showcase your homes to buyersaround the world.
� Coldwell Banker dedicates unsurpassed resources to developing
powerful online partnerships and international alliances.
� With our incredible marketing reach, your listings are showcased
to over 15 million buyers every day on 550+ high-traffic websites.
� Our CBmove.com properties are viewed by international visitors
from 153 countries.
Your homebuyers and sellers get a distinctive marketing edge with Coldwell Banker’s extensive global reach and strong alliances, unparalleledby any other brokerage.
Coldwell Banker® Has International PresenceCompetitors Can’t Match
If you’d like to work with the best and brightest, visit CareersCB.com.
©2012 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell BankerLogo, Coldwell Banker Previews International, the Previews International logo and “Dedicated to Luxury Real Estate” are registered and unregistered service marks owned by Coldwell Banker Real Estate LLC. 5948BAL_09/12
6129_MD Realtor Ad REV4_Layout 1 9/27/12 3:46 PM Page 2
NOw Is ThE TIME TO RIdE ThE wAVE
T A B L E O F C O N T E N T S
Ride the WaveMaryland Association of REALTORs® Annual Conference and EXPO
6
FEATUREs
2012 MAR ANNUAL CONFERENCE & AWARDS 6
2012 ANNUAL CONFERENCE & EXPO SPONSORS 10
JOANNE POOLE & IONA HARRISON: 2012 Life Achievement Awards 12
MARYLAND UPDATE 2012 Statewide Forms Review 16
YOUR FUTURE IS OUR BUSINESS 2012 Member Benefits Special Pull-Out Section 19
REALTORS PROPERTY RESOURCE® (RPR®) to Launch November 1, 2012 33
dEPARTMENTs
PRESIDENT’S PERSPECTIVE 1
MAR 2013 LEADERSHIP TEAM 4
REGULATION NEWS Commission Disciplinary Actions 14
MARYLAND REAL ESTATE COMMISSION NEWS By the Numbers 23
COMMERCIAL CONNECTION Thinking About Trying Commercial Real Estate? Look Before You Leap. 24
SNIPPETS 26
MRIS UPDATE New MRIS HomesTM Mobile App 28
RESIDENTIAL SALES Housing Market Slowly Reviving 37
NO
VEM
BER
201
2
www.mdrealtor.org
23MARYLAND REALTOR®
November 2012
By the numbers—The Commisions FY 2012 Results
The Real Estate Commission provides an annual report to the General Assembly at the conclusion of each fi scal year, which
I summarized for the MAR Board of Directors in September. The data we track includes original and renewal licensing,
license examinations, the guaranty fund, consumer complaints and continuing education audits.
Here are some of the statistics for the twelve months ending June 30, 2012:
Maryland Real Estate Commission News
K AT H E R I N E C O N N E L LY
Maryland Real Estate Commission News
Total Number of Licensees
on June 30, 2012
39,058(2,391 lower than June 30, 2011)
Original Licenses Issued
� e Real Estate Commission strives to provide the best possible service to licensees and consumers. If you have questions about
the data we reported to the General Assembly or if you have suggestions as to how we can improve our performance, please
contact me at [email protected].
Licensing Examinations
Administered
Continuing Education Audits
Audited licesees who did not produce proof of CE compliance ...............46
Status of Audit Cases
18 accepted settlement agreements that included � nes and remedial CE
2 sent back their real estate licenses
4 in process of accepting settlement agreements
4 accepted settlements but have not yet paid � nes
2 disciplinary charges in process
1 audited licensee requested a hearing
6 have not yet responded to audit request for CE certi� cates
9 under review by MREC sta�
Consumer Complaints
Received ..............................
......... 549
Complaints Investigated...............196
Investigations Pending .................... 13
Completed .............................
...... 620
Renewal Licenses Issued
Broker .............................
..............................
..............................
.. 2,075
Reciprocal Brokers ..............................
..............................
........................ 0
Assoc Broker ..............................
..............................
...................... 1,350
Recip. Assoc Brokers ..............................
..............................
..................... 0
Salesperson ..............................
..............................
.................... 13,727
Recip. Sales .............................
..............................
..............................
..... 1
Total ............................
..............................
..............................
. 17,152
0
500
1,000
1,500
2,000
267
16
205 205
1,868
Brok
er
Recip
roca
lBr
oker
s
Asso
ciate
Br
oker
s
Recip
. Asso
c Br
oker
s
Recip
. Sale
s
Sales
perso
n
31
Administered
Broker
488
Salesperson
5,366
Total 2,391
Disciplinary Fines Assessed
$ 142,300
Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. For more information, visit http://www.dllr.state.md.us/license/mrec
Guaranty Fund
Balance ..............................
..............................
........$1,880,485.47
(as of June 30, 2012)
FY 2012 payouts ..............................
..............................
$295,661.23
By the NumbersMaryland Real Estate Commission News
MAR Member Benefitsspecial Pull-Out section
19
www.mdrealtor.org
MARYLAND REALTOR®
November 201212
LifeAchievement Awards
JoAnne Poole: Seizing Opportunities
JoAnne Poole could have coasted a
bit as a volunteer after her
successful tenure as President of
the Maryland Association of
REALTORS® (MAR) in 2005. � e real
estate market was sizzling; there was
unprecedented growth in membership
and in home values and sales.
But that’s not Poole. She worried
during her term that the housing expansion was unsustainable,
and that skyrocketing prices kept many potential buyers out of
the market altogether. Having spent many of her volunteer
hours locally and at the state expanding ways to make
homeownership opportunities available to all who can a� ord
to buy, she was concerned about the possible long term e� ects
of a market that cooled rapidly. As one of MAR’s � rst
instructors in credit literacy, and a strong proponent of its
Workforce Housing Certi� cation program, she knew � rsthand
the problems many new and aspiring homeowners faced in
managing their � nances, even in a stable market.
So when the world changed soon after, her dedication as a real
estate leader deepened.
Poole rolled up her sleeves even further and dug in for the next
wave of business challenges that have confounded politicians,
economists, and executives in recent years. She not only stayed
involved in MAR in many areas, she led a group that explored
ways to teach Maryland REALTORS® how to be more e� ective
leaders in the state and nationally. She continued her service
with the National Association of REALTORS®, which had
already included service across a broad spectrum of policy
development, including chairing a group reviewing credit
policy issues. Over the next seven years, she served on half a
dozen committees and other groups focusing on housing
policy, public policy and related business issues. In November
she will complete a one-year term as chair of the Housing
Opportunity Committee. “We’ve been able to give many
grants for good works being done all over the country,” says
Poole, including home buying counseling, a� ordability
initiatives and aid for the homeless.
Poole’s 25-year real estate career in Anne Arundel County
began in 1987 when she joined Coldwell Banker as a
salesperson, following a 17-year stint with the Social Security
Administration. What prompted Poole to pursue her real estate
license was, in fact, her own experience as a � rst-time home
buyer with her husband John. “It was disheartening. � e agent
couldn’t have cared less about us. He didn’t even know who we
were at the settlement,” she remembers. “I thought, no one
needs to be treated like this.”
Others had long advised Poole that she had the right
personality and drive to excel in real estate, so she decided to
get her license. Ten years later, she was elected president of the
Anne Arundel County Association of REALTORS®. “It’s been
one of my better decisions. It’s never felt like a job,” she said.
While Poole is proud to have been the � rst African-American
woman to serve as president of both the state and local
association, she is dedicated to � nding ways to expand
opportunities for others, whether its consumers interested in
buying their � rst home or colleagues interested in making an
impact in their professional community.
And through it all, she’s also forged ahead with her own real
estate business. Since February Poole has been branch manager
with Prudential Homesale YWGC Realty, the company
formed through a merger with Yerman Witman Gaines &
Conklin Realty, where she also served as manager. From 2006
to 2011 she was the broker owner of Poole Realty.
She attributes much of her success, whether in her day to day
business or in her volunteer work, to her people skills. “I am
2012 Life Achievement Awards
12 235
www.mdrealtor.org
3MARYLAND REALTOR®
November 2012
FEATUREs
2012 MAR ANNUAL CONFERENCE & AWARDS 6
2012 ANNUAL CONFERENCE & EXPO SPONSORS 10
JOANNE POOLE & IONA HARRISON: 2012 Life Achievement Awards 12
MARYLAND UPDATE 2012 Statewide Forms Review 16
YOUR FUTURE IS OUR BUSINESS 2012 Member Benefits Special Pull-Out Section 19
REALTORS PROPERTY RESOURCE® (RPR®) to Launch November 1, 2012 33
dEPARTMENTs
PRESIDENT’S PERSPECTIVE 1
MAR 2013 LEADERSHIP TEAM 4
REGULATION NEWS Commission Disciplinary Actions 14
MARYLAND REAL ESTATE COMMISSION NEWS By the Numbers 23
COMMERCIAL CONNECTION Thinking About Trying Commercial Real Estate? Look Before You Leap. 24
SNIPPETS 26
MRIS UPDATE New MRIS HomesTM Mobile App 28
RESIDENTIAL SALES Housing Market Slowly Reviving 37
Pasadena - Annapolis - Odenton - Edgewater - Dunkirk Ellicott City - Severna Park - Waldorf - Washington DC - Rockville - Ocean City
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www.mdrealtor.org
4MARYLAND REALTOR® November 2012
2013 Maryland Association of REALTORS® Leadership Team
Carlton J. Boujai Jr.PresidentEXIT Realty Prosperity Group5300 westview drivesuite 105Frederick, Md [email protected]
J. Russell BoycePresident ElectRE/MAX 10010665 stanhaven Place white Plains Md [email protected]
Mary C. AntounChief Executive OfficerMaryland Association of REALTORS® 200 harry s Truman Parkway suite 200Annapolis, Md [email protected]
Janice R. Kirkner Secretary Long & Foster Real Estate, Inc.1208 Nottingham drivewestminister, Md [email protected]
Patricia A. TerrillImmediate Past PresidentPrudential PenFed Realty7501 Coastal highwayOcean City, Md 21842-2937410.524.7000Fax [email protected]
Maryland Association of REALTORS®
200 harry s Truman Parkway | suite 200Annapolis, Md 21401-7348
800.638.6425 | www.mdrealtor.org
Executive Leadership TeamCarlton J. Boujai Jr. | President
J. Russell Boyce | President ElectJanice R. Kirkner | secretaryCarole A. Maclure | Treasurer
Patricia A. Terrill | Immediate Past PresidentMary C. Antoun | Chief Executive Officer
Editordeborah L. hager | [email protected]
Advisory CommitteeYolanda R. Muckle | Chair
Thomas P. Levin | Vice Chair
Advertising & Publication DesignEllipse design
2818 Fallfax drive, Falls Church, VA 22042703.289.9100 | http://ellipse.balmar.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®, suite 200, 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®, suite 200, 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 specifically stated. ©2010 Maryland Association of REALTORs®, Inc.
Carole A. MaclureTreasurer Greater Capital Area AssnRE/MAX Advantage Realty17304 Evangeline LaneOlney, Md 20832-2928240.295.6000Email: [email protected]
5MARYLAND REALTOR®
November 2012
www.mdrealtor.org
April/May 2011:
Straight talk about
heating costs
Aug./Sept. 2011:
The truth about switching fuels
Dec. 2011/Jan. 2012: Test your oil-heat knowledge
Want the facts? Want to connect?Check out these issues…
Refer your clients to the Homeowner’s Guide to Heating Oil so they can make smart decisions about their property. They’re FREE at md.oilheatpros.com or contact Susan Janett on Facebook.
so they
The Consumer Energy Council of America concluded that changing fuel sources does not make economic sense…
— Homeowner’s Guide to Heating Oil, page 10.
why oilheat is cleaner and more efficient
open the door to more year-end closings
search for [email protected]
“Friend” Susan Janett
®
Comparing today’s oilheat with what your grandparents had is like comparing a laptop computer to a typewriter. Because of advances in
technology, it’s “apples to oranges.”
• Today’s average oil-heated home burns 30% less fuel than the average number of gallons used in the 1970s.
• New indoor tanks can be installed in hard-to-fi t places; underground tanks are now cathodically protected to prevent rust and corrosion.
• The particulate emissions from an oil heating system are as minute as those from a similar-size natural gas burner.
• The oilheat industry continues to focus on combining clean-burning technologies with greener fuels — those with an ultra-low sulfur content.
When you need medical or legal advice, you turn to a doctor or lawyer. Along the same lines, if you need advice about resolving an obstacle with an oil-heated property transaction, contact a local oilheat dealer. In many cases, this could be your solution to saving the sale.
Local oilheat dealers have always been a great resource for REALTORS, offering innovative solutions that may not have occurred to most agents. Dealers can provide information about heating equipment and local regulations (especially on tank issues), make recommendations for underground tanks, analyze a home heating system and its service history, document the amount of oil in the storage tank… and much more. Plan ahead, reach out to your local oilheat dealer today.
save the sale, consult an expert
Local oilheat experts from PRO$ are speaking at offi ce sales meetings throughout Maryland. They know your market area intimately and recognize the challenges you face. The PRO$ program is non-profi t, which makes it purely educational, and it is scaled to fi t into your meeting agenda. To request a PRO$ presentation visit md.oilheatpros.com or contact Susan Janett on Facebook.
Oilheat. Know more, sell more.
MAPDA-FullPgAd-Oct12-12678.indd 1 9/19/12 5:36 PM
www.mdrealtor.org
2012 Annual Conference & Awards
7MARYLAND REALTOR®
November 2012
Maryland Association of REALTORS® Annual Conference and EXPOThere was fun, friends, and food for over 1200 REALTORs® and Exhibitors attending the Annual Conference and EXPO in Ocean City featuring extensive and cutting-edge continuing education, valuable networking, exciting speakers and a full array of products and services expressly geared for our members in a packed Exhibit hall.
Ride the Wave
OMEGA TAU RHO2011 President Cathy Werner and 2011 REALTOR® of the Year, Anita Davis received the medal from 2012 NAR Treasurer Bill Armstrong.
REALTOR® OF THE YEAR2012 REALTOR® of the Year David McIlvaine accepts the award from 2010 ROTY Marla Johnson.
LIFE ACHIEVEMENT AWARDJoAnne Poole and Iona Harrison receive the MAR Life Achievement Award from 2011 awardee Al Ingraham.
www.mdrealtor.org
2012 Annual Conference & Awards
8MARYLAND REALTOR® November 2012
COMMUNITY ACTION AND REALTOR® EXCELLENCE (CARE) AWARDSThis award recognizes outstanding achievements in Community service by Local Association members.
The seven local Association 2012 Nominees are: Cecil County, Coastal, Frederick, Greater Capital Area, Mid-shore, Prince Georges and southern Md.
Mid-shore Board President Valerie Brown (2nd from left) and shelby Roney, Community service Committee chair, accepted top honors from CARE Committee Chair Michael Cerrito (left) and 2012 MAR President Pat Terrill. Their $10,000 prize will be contributed to up to five charities of their choosing.
southern Maryland Association President Paul Fenton accepts the 1st honorable mention from CARE Committee Chair, Michael Cerrito (left) and 2012 MAR President Pat Terrill. The $5000 cash award will be donated to the charities of their choosing.
Frederick County Association of REALTORs® President Gloria Castle accepts special Projects Award for their rehab work to a local family home. The association will receive $1000 to be given to a charity of their choosing.
PRESIDENT’S AWARDPresident Pat Terrill presents the award to MAR Vice President and Chief Lobbyist Bill Castelli, Director of Government Affairs Susan Mitchell, and Director of Regulator Affairs Mark Feinroth for their outstanding efforts to the successful Mortgage Interest Deduction Campaign and other critical legislative issues.
COMMUNITY SERVICE AWARD
Simon Nwaigwe is the 2012 Community Service
Award recipient and accepts the award from
2012 MAR President Pat Terrill.
SHINING STARJennifer Klarman accepts the MAR Shining Star Award. This award was presented to Jennifer to recognize her as an outstanding new volunteer to the MAR Communications/PR Committee.
Award
shINING sTAR
www.mdrealtor.org
9MARYLAND REALTOR®
November 2012
Alease BowlesPrince George’s County Assn.
Paul FentonSouthern Maryland Assn.
Pam HarrisonAnne Arundel County Assn.
David DausesBay Area Assn.
Marie ShantzCarroll County Assn.
Sharon CurtissCoastal Assn.
Sandy FoucheFrederick County Assn.
Betsy HolcombGarrett County Assn.
David McIlvaineGreater Baltimore Board
Patrick WeedGreater Capital Area Assn.
Frederick Winston ArcherHarford County Assn.
Donald CarterHistoric Highlands Assn.
Jim HyattHoward County Assn.
Ivan HoltMid-Shore Board
REALTOR® of the Year Nominees
2012 Annual Conference & Awards
www.mdrealtor.org
10MARYLAND REALTOR® November 2012
The Maryland Association of REALTORS® especially thanks and recognizes its Sponsors. It is their generous support that makes the MAR Annual Conference so successful.
MAIN CONFERENCE SPONSORSMRIsPentagon Federal Credit Union
PLATINUM SPONSORCentury 21 Real Estate, Inc.
OVERALL CONFERENCE SPONSORS203K servicesBay Area AssociationCarroll County Association of REALTORs® Cecil County Board of REALTORs®deustche BankGarrett County Board of REALTORs®Greater Capital Area Association of REALTORs®harford County Association of REALTORs®Maryland department of housing and Community developmentMhREIAMidshore Board of REALTORs®Pearl Insurancesouthern Md Association of REALTORs®steve Meszaros, 2010 MAR Presidentwomen’s Council of REALTORs®
REALTOR® BUSINESS CENTERColdwell Banker Residential Brokerage
LANYARDSEmbrace home Loans
NAR DIRECTORS BREAkFASTAnne Arundel County Association of REALTORs®Coastal Association of REALTORs®howard County Association of REALTORs®
MONDAY & TUESDAY CONTINENTAL BREAkFASTSLong & Foster Real Estate
2012 President Pat Terrill recognizes the Annual Conference & EXPO Main sponsors with a framed logo. (L) Kevin wiles, President, Prudential PenFed Realty accepts on behalf of Pentagon Federal Credit Union. (R) david Charron, President & CEO, MRIs
2012Annual Conference and EXPO Sponsors
www.mdrealtor.org
11MARYLAND REALTOR®
November 2012
WEDNESDAY REFRESHMENT BREAkLong & Foster Real Estate
Prince George’s County Association of REALTORs®
CONFERENCE SURVEYUPs
INSTALLATION BANqUETEXIT RealtyFrederick County Association of REALTORs®EXIT Realty Prosperity Group
Al Ingraham, 2006 MAR PresidentBillie Landbeck, 1978 MAR PresidentBill Neary, 2002 MAR Presidentharold huggins, 1999 MAR PresidentIlene Kessler, 2007 MAR PresidentIona harrison, 2009 MAR PresidentJoAnne Poole, 2005 MAR PresidentJudith diFilippo, 1995 MAR President
GOLF TOURNAMENTGolf Putting Green – Bill Neary, 2002 MAR President
Golf Carts – Frederick County Association of REALTORs®
TEESMartha Lessner, REALTOR®Td Bank, Paul MalstromFirst home Mortgage, Brett ReichartJanice Kirkner, REALTOR® Pen-MAR Association of REALTORs® Eastern Moving & storageLakeside Titlehomesale settlement servicesAdvantage Title Company
GREENShomesale settlement services, Ed BrynesJanice Kirkner, REALTOR®Capital Bank, NA203 K servicesMy Marketing MattersChris McKenna – In MemoriamCK Capital ManagementAmerican home sheildwCR GBBR ChapterPen-MAR Regional Association of REALTORs®
Annual Conference and EXPO Sponsors
www.mdrealtor.org
MARYLAND REALTOR® November 201212
Life Achievement Awards
JoAnne Poole: Seizing OpportunitiesJoAnne Poole could have coasted a
bit as a volunteer after her successful tenure as President of
the Maryland Association of REALTORS® (MAR) in 2005. The real estate market was sizzling; there was unprecedented growth in membership and in home values and sales.
But that’s not Poole. She worried during her term that the housing expansion was unsustainable, and that skyrocketing prices kept many potential buyers out of the market altogether. Having spent many of her volunteer hours locally and at the state expanding ways to make homeownership opportunities available to all who can afford to buy, she was concerned about the possible long term effects of a market that cooled rapidly. As one of MAR’s first instructors in credit literacy, and a strong proponent of its Workforce Housing Certification program, she knew firsthand the problems many new and aspiring homeowners faced in managing their finances, even in a stable market.
So when the world changed soon after, her dedication as a real estate leader deepened.
Poole rolled up her sleeves even further and dug in for the next wave of business challenges that have confounded politicians, economists, and executives in recent years. She not only stayed involved in MAR in many areas, she led a group that explored ways to teach Maryland REALTORS® how to be more effective leaders in the state and nationally. She continued her service with the National Association of REALTORS®, which had already included service across a broad spectrum of policy development, including chairing a group reviewing credit policy issues. Over the next seven years, she served on half a dozen committees and other groups focusing on housing policy, public policy and related business issues. In November
she will complete a one-year term as chair of the Housing Opportunity Committee. “We’ve been able to give many grants for good works being done all over the country,” says Poole, including home buying counseling, affordability initiatives and aid for the homeless.
Poole’s 25-year real estate career in Anne Arundel County began in 1987 when she joined Coldwell Banker as a salesperson, following a 17-year stint with the Social Security Administration. What prompted Poole to pursue her real estate license was, in fact, her own experience as a first-time home buyer with her husband John. “It was disheartening. The agent couldn’t have cared less about us. He didn’t even know who we were at the settlement,” she remembers. “I thought, no one needs to be treated like this.”
Others had long advised Poole that she had the right personality and drive to excel in real estate, so she decided to get her license. Ten years later, she was elected president of the Anne Arundel County Association of REALTORS®. “It’s been one of my better decisions. It’s never felt like a job,” she said.
While Poole is proud to have been the first African-American woman to serve as president of both the state and local association, she is dedicated to finding ways to expand opportunities for others, whether its consumers interested in buying their first home or colleagues interested in making an impact in their professional community.
And through it all, she’s also forged ahead with her own real estate business. Since February Poole has been branch manager with Prudential Homesale YWGC Realty, the company formed through a merger with Yerman Witman Gaines & Conklin Realty, where she also served as manager. From 2006 to 2011 she was the broker owner of Poole Realty.
She attributes much of her success, whether in her day to day business or in her volunteer work, to her people skills. “I am
2012
Continued
13MARYLAND REALTOR®
November 2012
www.mdrealtor.org
Iona C. Harrison: A Commitment to GivingFew people are as plugged into
real estate issues in Maryland as Iona Harrison. For almost two
decades, she has lent her ideas and energy to 37 committees, forums and other groups dedicated to protecting real property rights and the interests of association members working through an array of industry challenges at the local, state and national levels. “I
especially enjoy public policy and engaging in debates,” explains Harrison. Her colleagues observe that she has two essential traits for a leader: she can think on her feet and she knows how to lead a meeting.
Those skills were put to the test when she became President of the Maryland Association of REALTORS® in 2009. The housing market and the wider economy were plunging into the darkest period in decades. “I thought: this is the worst time to be president. But the truth is I wish 2009 was the worst,” she says. “We just weren’t expecting such a long, long downturn.”
Harrison cited her commitment to fiscal responsibility during her time at the helm that enabled MAR to cut costs without affecting the high quality of services offered to members during a period when dues revenue was falling sharply. “We had a strong leadership team and supportive culture. I never felt I was alone.”
Licensed since 1976, Harrison has worked at a variety of large and small brokerages, and has loved the flexibility that her career has offered as her family grew. Her real estate advocacy has included testifying three times before Congress about such critical matters as GSE and FHA reform. “I am a cheap date for NAR since it’s an easy drive for me to Capitol Hill,” quips
the long-time resident of Prince George’s County. The reality, of course, is that Harrison is a valued and expert resource on a broad range of issues affecting housing and mortgage financing.
Harrison is gearing up for her newest NAR post as the association’s major investor liaison, charged with reporting on fundraising efforts to the leadership team. “It’s a challenge to raise money during this economic climate, when many people would rather run the other way. But I’m up for it. Every job I take on has a new facet that I enjoy,” said Harrison, an RPAC Golden R member for the past 10 years.
Fundraising is a strength of hers that goes beyond the real estate industry. She has led her church’s efforts to raise money for needed repairs since the 2011 Washington-Metro area earthquake. The church is well on the way to reaching its $200,000 goal. And she’s still putting in full-time hours as a sales and property manager at Pioneer Realty in Upper Marlboro where her husband John, also a former MAR president, is senior vice president.
Married for 45 years, they have five grown children, three of whom are involved in the real estate business, and five grandchildren. “John is the one who encouraged me to get into real estate and I have done many of the same things he does, but a few years after him. My industry activities, however, are more broad-based than his.”
Their professional partnership augments their personal relationship. “He’s very supportive and we work well together,” Harrison notes. “And I can kick him under the table when necessary.”
very comfortable developing relationships with people, whether it’s in one-on-one situations or with a group.” Poole says she developed the tenacity required to succeed professionally early on. She happily recalls her sixth-place finish at an elementary school track meet in Baltimore. “The year before I had come in seventh,” she explained. “The point is I kept trying and I improved.” She credits her parents with teaching her about the
importance working through things no matter how hard they seem. “My parents were very positive people. They taught me you can win without necessarily being first.” But having made it to the top ranks of her profession, she certainly doesn’t mind the view. “I am honored to think that my peers consider me qualified to reach this level.”
www.mdrealtor.org
14MARYLAND REALTOR® November 2012
Commission Takes a Property Manager’s License
Regulation NewsM A R K F E I N R O T H , E S Q U I R E
The Real Estate Commission has posted to its website the list of disciplinary actions taken against licensees during the fiscal year ending June 30, 2012. A total of 159 cases were fully adjudicated during the year.
One licensee’s name appears on the list multiple times. Ms. Sue Willison was involved in more than a third of the FY 2012 cases. To her credit, Ms. Willison
entered into a settlement agreement with the Real Estate Commission in which she agreed to surrender her license and promised not to dispute guaranty fund claims filed by her for-mer clients. The Commission also took disciplinary action against Ms. Willison’s broker.
Ms. Willison was a licensed salesperson affiliated with West Patrick Property Solutions of Frederick, Maryland. She re-ceived rent payments on behalf of property owner clients and then failed to provide those funds to her clients or use the funds to maintain the properties under management. She was charged in 73 cases with failure “to account for or remit promptly any money that comes into the possession of the li-censee but belongs to another person” under Section 17-322 (b) (22) of the Maryland Real Estate Brokers Act. Fifty-nine of the cases were fully resolved this past fiscal year; the 24 re-maining cases await the administrative hearing process to es-tablish the amount of the Guaranty Fund reimbursements for the property owners who filed those claims.
Ms. Willison’s broker also entered into a settlement agreement with the Real Estate Commission, but that case has not yet been released. The terms of the broker’s agreement were made available to us on the condition that she is not identified until her case is fully concluded. The broker was charged with fail-ing to “exercise reasonable and adequate supervision over the provision of real estate brokerage services” under Section 17-320 (c). The broker agreed to relinquish her broker license and to pay a $2500 civil penalty. After she pays her penalty, the broker will be permitted to apply for a salesperson license.
There are a two points worth making about the West Patrick Property Solutions cases.
First, the cases point out the significant advantage for con-sumers who do business with licensed real estate agents as property managers. Current law does not require property managers to be licensed real estate agents. A consumer who elects to do business with an unlicensed property manager is not entitled to file a claim against the real estate guaranty fund. Commissioner Marla Johnson, the Commission’s legis-lative committee chair, has been one of the Commission’s ad-vocates for mandatory licensing of property managers. Ms. Johnson is herself a licensed broker who provides property management service. She argues that, “the primary mission of the Real Estate Commission is to protect consumers. We sim-ply cannot justify a regulatory system that provides protection for some, but not others, based on whether the consumer hires a real estate licensee as a property manager.” The Com-mission will not be ready to offer a legislative proposal for property manager licensing in the upcoming 2013 legislative session, but plans to do so in 2014.
Second, any real estate agent or broker who fails to account for client funds is likely to face a career ending disciplinary ac-tion from the Real Estate Commission. In such cases, there is also the possibility of a criminal prosecution.
The full list of disciplinary cases along with Commission’s final order can be found on their website at http://www.dllr.state.md.us/license/mrec/. Please feel free to contact me if you have any questions regarding the West Patrick Property Solutions cases or the Real Estate Commission’s interest in mandatory licensing for property managers. I can be reached at [email protected].
Mark Feinroth, Esquire, Director of Legal and Regulatory Affairs Maryland Association of REALTORS®
15MARYLAND REALTOR®
November 2012
www.mdrealtor.org
Dr. King’s message of equality
must continue to enlighten future
generations, and the Washington, DC
Martin Luther King, Jr. National Memorial
will see that it does.
The NATIONAL ASSOCIATION
OF REALTORS®
is proud to be a major sponsor
of this important memorial.
To learn more visit www.mlkmemorial.org
M a r t i n L u t h e r K i n g , J r . N a t i o n a l M e m o r i a l
Proud Supporter of the Washington, D.C. Martin Luther King, Jr. National Memorial Project Foundation, Inc
www.mdrealtor.org
16MARYLAND REALTOR® November 2012
Notice of New and Revised MAR Forms for 2012
Maryland UpdateC O L E T T E M A S S E N G A L E , E S Q U I R E
New forms available by request:■ General Residential Dwelling Lease Template
■ Exclusive Right to Lease Residential Brokerage Agreement
Revised forms available by request:
■ Exclusive Right to Sell Residential Brokerage Agreement
Changes – Paragraph 8 (provision regarding property data) and Paragraph 11 (provision regarding repairs) were added. Paragraph 15B (provision relating to lead-based paint renovation rule) was revised. The word “lead-based” was removed.
■ Exclusive Right to Sell Unimproved Land Brokerage Agreement
Changes – Paragraph 8 (provision regarding property data) was added.
■ Exclusive Buyer/Tenant Representation Agreement
Changes – Revisions were made so that the agreement may be used in lease and purchase transactions. Paragraph 11 regarding repairs was also added.
Revised forms available generally:■ Residential Contract of Sale
Changes – In Paragraph 16B (provision relating to lead-based paint renovation rule), the word “lead-based” was removed. In Paragraph 39, $25,000 was deleted and $50,000 was added.
■ Unimproved Land Contract of Sale
Changes – In Paragraph 39, $25,000 was deleted and $50,000 was added.
■ The Notice Pursuant to Condition of Property and Possession Paragraph of MAR Residential Contract of Sale and Notice Pursuant to MAR Inspections Addendum replaces the Notice Pursuant to Property Inspections Addendum to Contract of Sale.
Changes – Section I was added. Paragraph 3C was modified. Specifically, “will not” was removed and “will” was added. A minor modification was made to Paragraph 4A.
■ As Is Addendum
Changes – The first paragraph was modified to make clear that the buyer has the ability to conduct a walkthrough.
■ Maryland Lead Poisoning Prevention Program Disclosure
Changes – In response to a Maryland court case striking down the qualified immunity provisions of the Maryland Reduction of Lead Risk in Housing law, the last sentence of Paragraph 2 was modified.
■ Onsite Sewage Disposal Inspection
Changes – A technical change was made to the last sentence of the addendum.
Continued
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The following 7 forms were modified to include language requiring that a broker holding the earnest money must comply with Section 17-505 of the Brokers Act:
1 Maryland Homeowners Association Act/Notice to Buyer/Initial Sale/Buyer Will Not Occupy or Rent for Residential Purposes
2 Maryland Homeowners Association Act/Notice to Buyer/Initial Sale/More than 12 Lots/Buyer will Occupy or Rent for Residential Purposes
3 Maryland Homeowners Association Act/Notice to Buyer/Resale of a Lot of Any Size/Initial Sale of Lot 12 or Fewer Lots/Buyer Will Occupy or Rent for Residential Purposes
4 Maryland Homeowners Association Act/Notice of Changes in Mandatory Fees and Disclosure of Substantial and Material Amendments
5 Condominium Resale Notice
6 Resale of Condominium Unit Acknowledgment
7 Condominium Resale Disclosure and Transmittal of Documents from Seller as Unit Owner
For additional information regarding MAR Statewide Forms, you may contact Colette Massengale, Esq. at [email protected] or call 800.638.6425.
Colette Massengale, Esquire, Staff Attorney of Legal Affairs Maryland Association of REALTORS®
18MARYLAND REALTOR® November 2012
www.mdrealtor.org
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md_realtor_fp.indd 1 5/7/12 12:08 PM
The Maryland Association of REALTORS® (MAR) offers a networking center for professional contacts and member discounts on products and services you use everyday. Over 500 volunteers and staff work to provide these programs and services offered by MAR.
MAR is your professional organization working to make business more profitable, productive, and satisfying. Whether you have been a REALTOR® for 10 minutes or 10 years, this booklet will acquaint you with the variety of available programs.
MAR is the largest trade association in Maryland and the central information resource for Maryland’s real estate news, issues and trends. We keep you informed using traditional and technology-based channels to fit your schedule and preferences.
This handbook introduces you to some of the most valuable member benefits, including:
■ FREE Legal Hotline
■ FORMS ■ Statewide Contract of Sale and revised addenda ■ Downloadable Statewide Forms
■ Additional Forms from participating local boards/associations
■ Mediation Services
■ Professional Development & Educational Opportunities
■ FREE Webinars for all members
■ Benefits of Membership Roadmap—all the important links to mdrealtor.org
■ FREE REALTOR® Marketing Toolkits, emailed monthly
AND MANY MORE. . .
Visit www.mdrealtor.org to view updated member discounts & benefits
MORE
DISCOUNTED
BENEFITS
MEDIATION
SERVICES
REALTOR® TOOLKIT
MAR MEMBERs BENEFIT wITh DIRECT SAVINGS!
Member Benefits www.mdrealtor.org
MAR MEMBERSHIP BENEFITS
Your Future is our Business
ALL MEMBER
WEBINARS
LEADERSHIP
ACADEMY
HEALTH INSURANCE
Member Benefits www.mdrealtor.org
The rewards of the real estate profession — unlimited opportunity, independence, and flexibility — are abundant. MAR provides many resources to help you manage your business professionally and productively.
LegaL HotLine
Free, authoritative legal advice is available by calling the MAR Legal Hotline at 1.800.888.1272. Questions on all aspects of real estate law are answered. Sales agents may call the Hotline up to four times per year; designated REALTORS® have unlimited calls.
A written response is sent to all callers and their brokers or managers. Hours of operation: M-W-F 10am - Noon and 2pm - 4pm. Members may also ask legal questions using the online form, available at the Legal Hotline tab on www.mdrealtor.org. Simply fill out the form and click “Submit.” An attorney from the MAR Legal Department will respond, either by reply email or by phone, within 48 hours.
MaR Statewide FoRMS - FoR MaR MeMBeRS onLY!
MAR creates numerous contracts and addenda that comply with Maryland laws. For copies of the contracts and various addenda with up-to-date revisions, as well as various local forms provided by our local associations, visit www.mdrealtor.org and click on the “Statewide Forms” link in the “Top Destinations” section.
inFoRMatiVe SaLeS MeetingS
MAR staff is available to speak at your sales meetings on the current legislative session, risk reduction, agency, and statewide sales contract. Visits are being scheduled now. (No CE credit) Email Chuck Kasky, Colette Massengale or Don Martin or call 800.638.6425.
diSpute ReSoLution
MAR is a resource for members and the public who need assistance with disputes and can provide guidance on available options to assist in resolving issues. Visit the Dispute Resolution tab, under the Legal tab, at www.mdrealtor.org for various available options, including a link to O.M. Services (800.291.9542), MAR’s partner, offering mediation services to your clients and customers who may have contractual disputes.
pRoFeSSionaL StandaRdS & ConduCt
All REALTORS® are required to take Ethics training and are bound by the National Association of REALTORS® strict Code of Ethics and Standards of Practice to assure the highest level of professionalism between REALTORS® and with clients and customers. MAR conducts annual programs locally for Grievance and Professional Standards Committees as well as local Board of Directors. MAR is a primary resource for its local Associations and members on the processes of filing professional standards and ethics complaints. Free online ethics training and the complete Professional Standards Procedures are available under the Code of Ethics/Professionalism tab (under a new Dispute Resolution tabbed section) at www.mdrealtor.org.
LegaL & pRoFeSSionaL SERVICES
deSignationS & eduCationaL oppoRtunitieS
Additional professional training opportunities are available through numerous professional enhancement sessions and higher level designation/certification programs that, in many
instances, meet state licensing renewal requirements. Classroom sessions as well as online training are available. MAR administers
the Maryland REALTOR® Institute and awards the national GRI (Graduate, REALTOR® Institute) designation — the nation’s largest real estate designation — to members who complete the 90 hour curriculum. Completion of all four GRI courses (120 hours) meets the educational requirement for the Maryland Associate Broker or Broker license enabling one to own his/her firm. For course schedules, check your Maryland REALTOR® magazine or visit the Education tab at www.mdrealtor.org. Additionally, MAR periodically conducts training for instructors to enhance their presentation abilities.
LeadeRSHip aCadeMY
The MAR Leadership Academy extends a special opportunity to members interested in developing and strengthening their leadership skills to prepare them to assume leadership roles within the industry and community. If you want to make a difference, take the challenge and call MAR for further details at 1.800.638.6425. General information and application are available under the Education tab, Leadership Academy at www.mdrealtor.org.
woRkFoRCe HouSing CeRtiFied (wHC) ReaLtoR®This certification program offers training to members who want to learn more about mortgage financing options for first-time homebuyers, critical workforce employees (such as police, firefighters, teachers, emergency medical technicians), special populations (including disabled persons and aging citizens), as well as down payment and closing assistance for buyers.
EDUCATION & pRoFeSSionaL DEVELOPMENT
ANNUAL CONFERENCE & EXPO Registration opens Spring 2013
Stay up-to-date with your license requirements and have fun! We offer a fast online registration that features an instant confirmation to your email address.
Visit the EXPO tradeshow — one of the largest anywhere! The Conference, one of our most popular member services, will be held on September 9-11, 2013.
Member Benefits www.mdrealtor.org
MAR keeps you informed about what is happening in Maryland real estate, national markets, the REALTOR® organization, and professional development using a wide variety of technology. MAR communications program and tools are a valuable REALTOR® resource and a marketing service to the public, the media, regulators, and legislators.
FREE CoMMuniCation RESOuRCES
MaR weBSite: www.mdrealtor.org
As a REALTOR®, you can access a special member section and stay current with information on regulations, laws, cutting edge research, education opportunities and MAR member services. You can also e-mail [email protected] to ask questions, give comments, and request additional information.
MaRYLand ReaLtoR® Magazine
Every issue focuses on Maryland’s real estate business, providing information on economic statistics and forecasting, political, legislative and legal topics as well as feature articles of interest to members. Published six times annually.
Hot SHeet
This timely e-mailed alert provides new laws or pending bills, recently proposed or implemented regulations, forms, legal decisions, and other up-to-the-minute information for REALTORS®. Contact [email protected] to be included in this e-mail service.
BENEFITS OF MEMBERSHIP ROADMAP
One-stop shop for links to all benefits and areas of our website that will help you in your profession.
ReaLtoR® tooLkit
The REALTOR® Toolkit is 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.
ConSuMeR weBSite: www.marylandhomeownership.com
This tool for REALTORS® and consumers combines web-based homeownership education with options for financing programs in all counties in Maryland. Find out what’s available to help your buyer.
VoLunteeR oppoRtunitieSAs a professional association, the strength of MAR lies in its members who volunteer their expertise and time to set policy and develop programmatic direction. You can make MAR a better organization, benefiting you and your profession. We need member volunteers to participate in focus groups, surveys, task forces and
committees. Your participation will bring you into contact with the most successful REALTORS® in Maryland. Look for the annually posted volunteer form at www.mdrealtor.org or express your interest to [email protected].
STATEWIDE EDUCATION CALENDAR
EvENTS CALENDAR FOR LOCAL ASSOCIATION ACTIvITIES (Including YPN events)
www.mdrealtor.org
Member Benefits www.mdrealtor.org
eRRoRS & oMMiSSionS inSuRanCe and MoRe. . .
Did you know that Pearl Insurance is your Total Solutions Provider for ALL lines of insurance coverage? Just visit
www.pearlinsurance.com/maryland, scan this QR code into your smart phone, or call 800.289.8170 for details on the variety of solutions Pearl Insurance offers for real estate professionals.
eCo ink
Save 30%-70% off on Ink, Toner and Printer Supplies PLUS FREE SHIPPING on all orders $39 or more from Eco ink Benefits. Visit http//mar.inkbenefits.com/ for the complete list of products.
SaM’S CLuB
MAR and Sam’s Club have teamed up offering a $10 gift card when you join or renew your membership. Download the certificate by visiting the member benefits
section of mdrealtor.org and present it to any Sam’s Club in Maryland for this offer.
ALLIED vAN LINES
The MyHomeBenefits program, offered exclusively to Maryland Association of REALTORS®, gives you access to moving services and to preferred savings on move related services for you, your family members and clients and customers. For more information, call 800.579.2970, or visit http://mar.myhomebenefits.com
diSCounted Bwi aiRpoRt FaSt paRk
Join the Relax for Rewards Program FREE. Log into http://www.thefastpark.com/
marketing/baltimore/sh26edlr.html and complete the application. You will automatically be issued an Airport Fast Park card. Then simply park with us and begin earning points toward FREE parking (accumulate 1 point per day). Note: If you currently have an Airport Fast Park card, you do not have to re-enroll.
• FREE newspaper in the AM, FREE water bottle on their return.
• Don’t forget to mention our low rate of $6.90 per day+ tax (blue lot)
• Express checkout lanes make payment easier and faster.
• Easy computer access to receipts when needed.
• During certain holiday periods restrictions apply. No card No park! Cards take 10-14 days to arrive.
upS
Looking for bottom line savings? Save up to 30% percent on express air & international shipping through UPS (NYSE: UPS). The enhanced MAR program now offers member’s savings on UPS ground services! Members enrolled in the original UPS program (prior to August 2010) must re-enroll to take advantage of this new exclusive offer re-enroll by logging onto www.savewithups.com/mar or by calling 800.325.7000. When calling, simply let the
UPS Associate know you are a member of Maryland Association of Realtors®.
Office Depot provides our members access to new and more products and services. With the partnership, MAR members will quality for an instant savings on office supplies, copy and printing services, and promotional products. Additional promotions will be run throughout the year to provide additional savings. To register, go to www.mdrealtor.org and scroll the left sidebar to the Member Benefits.
FOR ASSISTANCE OR QUESTIONS CONTACT: Jill A. Johnson; [email protected]; 443.643.6832. Office Depot Business Solutions Division, http://business.officedepot.com – contact Jill for online ordering setup under the account.
MeMBeR BeneFit paRtneRS
ReaLtoRS® FedeRaL CRedit union
REALTORS® Federal Credit Union, a division of Northwest Federal Credit Union offers state of the art online banking with the ability to remotely scan checks for deposit, transfer funds between financial institutions, and free bill pay. Also, you may access thousands of Shared Branch locations and surcharge-free ATMs nationwide. The Credit Union has competitive financing for personal mortgage, business and commercial real estate loans (including investment properties). Your funds are federally insured to $250,000. REALTORS® and their families, REALTOR® owned businesses, and State or Local Associations and their employees are eligible for membership. For more information and to join, visit the RFCU Web site at www.REALTORSfcu.org.
HeaLtH inSuRanCe FoR You and YouR FaMiLY
Benefits By Choice, Inc. assists Maryland REALTORS® Association Members by providing professional consultation and access to the insurance benefits they need. Our service provides comparison quotes from multiple insurance providers. Shop and find some of the most affordable Health, Dental, Vision and Life Insurance coverage available. Call Stuart Jackson directly 888.424.4842 ext. 101; after hour calls will be returned the next business day. All MAR members and their families will receive a complimentary Prescription Discount Card; just go to: www.benefitsbychoice.com Click: Get your complimentary card now! Click: ScripSave Your MAR LOG IN CODE is 937
www.mdrealtor.org
23MARYLAND REALTOR®
November 2012
By the Numbers—The Commisions FY 2012 ResultsThe Real Estate Commission provides an annual report to the General Assembly at the conclusion of each fiscal year, which I summarized for the MAR Board of Directors in September. The data we track includes original and renewal licensing, license examinations, the guaranty fund, consumer complaints and continuing education audits.
HERE ARE SOME OF THE STATISTICS FOR THE TWELVE MONTHS ENDING JUNE 30, 2012
Maryland Real Estate Commission NewsK AT H E R I N E C O N N E L LY
Total Number of Licensees on June 30, 2012
39,058(2,391 lower than June 30, 2011)
Original Licenses Issued
The Real Estate Commission strives to provide the best possible service to licensees and consumers. If you have questions about the data we reported to the General Assembly or if you have suggestions as to how we can improve our performance, please contact me at [email protected].
Licensing Examinations Administered
Continuing Education AuditsAudited licesees who did not produce proof of CE compliance ...............46Status of Audit Cases
18 accepted settlement agreements that included fines and remedial CE2 sent back their real estate licenses4 in process of accepting settlement agreements4 accepted settlements but have not yet paid fines2 disciplinary charges in process1 audited licensee requested a hearing6 have not yet responded to audit request for CE certificates9 under review by MREC staff
Consumer ComplaintsReceived ....................................... 549Complaints Investigated............... 196Investigations Pending .................... 13Completed ................................... 620
Renewal Licenses IssuedBroker ........................................................................................... 2,075Reciprocal Brokers .................................................................................... 0Assoc Broker .................................................................................. 1,350Recip. Assoc Brokers ................................................................................. 0Salesperson ................................................................................ 13,727Recip. Sales .............................................................................................. 1Total ......................................................................................... 17,152
0
500
1,000
1,500
2,000
267
16205 205
1,868
Brok
er
Recip
roca
lBr
oker
sAs
socia
te
Brok
ers
Recip
. Asso
c Br
oker
s
Recip
. Sale
s
Sales
perso
n
31
Broker
488
Salesperson
5,366
Total 2,391
Disciplinary Fines Assessed
$142,300
Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. For more information, visit http://www.dllr.state.md.us/license/mrec
Guaranty FundBalance ....................................................................$1,880,485.47 (as of June 30, 2012) FY 2012 payouts ............................................................$295,661.23
www.mdrealtor.org
24MARYLAND REALTOR® November 2012
Thinking About Trying Commercial Real Estate? Look Before You Leap.
There you are: You have six years in residential sales, sitting duty desk. A call comes in from a person looking for ground to put up a building for an assisted care facility. He needs about six acres for about $2 million. Two million? The strobe lights start to flash. Maybe, just maybe, you can represent him.
Then the questions start to come from the potential buyer:
Is there land available? What zoning do I need in that area? How much are water & sewer tap fees? What’s the traffic count? Is storm water management in place? If I had to change zoning, how long would it take and what are the odds that it will be approved? Have environmental Phase One, Two, or Three checks been done on the ground? Do you have a good commercial real estate attorney that you work with? How long for site plan approval? What commercial lenders do you work with? What floor area ratios does the county require? How many parking spaces per 1,000 square feet are required? Can I do a 1030 tax deferred exchange within the IRS time limits?
You say, “Can I get back to you?” You run to your broker, “Commission on two million sounds great; I’m just not sure what he’s talking about.” Your broker looks at you with her forehead somewhat creased, which could be recognized as a frown. She says, “I’m not sure what he’s talking about either. To keep our tails out of trouble, here are our options.”
■ Don’t return the call.
■ Get yourself educated (but we don’t have time for that).
■ Refer him to somebody who does know what he’s doing. That way you won’t lose him and will still get the referral fee.
OR
■ Find somebody who knows what he/she is doing and work hand in hand with that person for a share of the commission. It will help educate you and help you decide whether commercial real estate sales are for you.
According to Article 11 of the National Association of Realtors (NAR) Code of Ethics:
The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. (emphasis supplied)
REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any
Commercial ConnectionE D S TA N F I E L D
Continued
25MARYLAND REALTOR®
November 2012
www.mdrealtor.org
Ed Stanfield CCIM, CRS, ABR, GRI, GREEN, REALTOR® EMERITUS, has been in real estate for 43 years and is licensed in Maryland, West Virginia and Pennsylvania. He’s an Associate Broker with Long & Foster Real Estate, Inc.
persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.
Compliance with Article 11 is an essential risk management tool. Attempting to represent a client in a transaction of a nature with which you are unfamiliar exposes you to potential liability if problems arise.
There are significant differences between residential and commercial transactions. For example, the Maryland statute governing agency, especially concerning dual agency and disclosure, does not apply to the commercial transaction. Also, fair housing law is inapplicable. Finally, there is no “standard” or form contract. Each transaction’s documents are unique and typically created by attorneys for the parties. There are other significant differences of which you would need to be aware.
Anyone considering a career in commercial real estate should consider the two NAR certifications: the Certified Commercial Investment Member (CCIM) and the Society of Industrial and Office REALTORS (SIOR). These are very select certifications, with only 9,000 CCIM and 3,000 SIOR designees out of over one million REALTORS® in the country. These certifications require intensive course work and a lot of study, capped by tough tests. In addition, sales production benchmarks must be met.
As you become more knowledgeable in commercial real estate, your fellow residential REALTORS® (and your spouse) still won‘t know what you‘re talking about. That’s all right. They never knew what you were talking about anyhow.
firstYour clients are more sophisticated than ever, requiring you to perform at a higher level of professionalism. By earning the Graduate, REALTOR® Institute Designation (GRI), you will lead the pack with real-world knowledge about new technologies, laws and marketing techniques that positively affect your bottom line.
Stay one step ahead of the competition. Earn your GRI.
Learn more at: www.mdrealtor.org
MAR GRI Series 100 - January 29, February 5, 12, 19 & 26, 2013
www.mdrealtor.org
26MARYLAND REALTOR® November 2012
DROPBOX MAkES LIFE EASIER A ‘cloud’ file storage option that allows you to store your personal files out there on the web. This allows you to synchronize and access your files on multiple computers, share documents with others and always have your hard drive at your fingertips.
■ Easy hard drive Transfers
■ Instant File sharing—You can generate a web address for every file or folder in your dropbox, and your recipient doesn’t have to install dropbox to see it.
■ Collaboration super station—simply create and share a dropbox folder with colleagues you’re working with—and voila the files will show up instantly on their desktop. This works beautifully when sending multiple files.
It’s time to truly take charge of your password and internet security issues. LastPass is a FREE, cloud-based tool that allows you to create one master password to gain access to all your sites. As soon as you install it, it scrapes all the sites in your browser history to show you just how many you have and how insecure you really are. LastPass is accessible in any browser. Go to https://lastpass.com/
have made their site even better. Originally an amazing tool for Microsoft Outlook, now Xobni organizes your contacts and more on your smartphones and in Gmail. Not only can you use Xobni with Outlook, but you can also use Xobni with your iPhone, Android or BlackBerry. smartr Contacts by Xobni enables you to access all your contacts from any Xobni or smartr App, when you’re on the go! Visit www.xobni.com
SNIPPETS
Subject: Homestead Tax Credit deadlineHomestead tax credit application due December 31, 2012
All homeowners must submit a one-time application to continue their homestead tax credit eligibility. Even homeowners who in the past have received the credit must file the form if they have not already done so.
The credit may not be claimed for vacation homes or rental properties, and the application process is designed to ensure that taxpayers receive only one homestead tax credit.
The homestead tax credit protects homeowners from the impact of real estate market fluctuations in annual property taxes. when home values increase dramatically, the homestead tax credit operates as a cap on the homeowner’s property tax bill and allows for the appreciation in value to phase in over time. For complete directions and a link to request the form, visit http://dat.state.md.us/prhomestead.pdf
If you have a ‘ridiculously useful website’ to share with
fellow REALTORS®, email: [email protected]
The sites are presented for information only. MAR is not responsible for the content of external websites and does not endorse them or their functionality. Although we make every effort to ensure these links are accurate, up to date and relevant, MAR cannot take responsibility for pages maintained by external providers. Views expressed by individuals and organizations on their own websites are not necessarily those of the Maryland Association of REALTORs®.
27MARYLAND REALTOR®
November 2012
www.mdrealtor.org
NO MORE TEXTING AND DRIVINGwww.dial2do.com
Maryland law prohibits “texting while driving.” You won’t miss a beat with Dial2Do. You’ll have to pay $5.99 a month for that, but if you go “Pro” you can also send, listen and reply to email, send and listen to tweets, and record notes to Evernote. Plus, it also integrates with Google Calendar, Xpenser, Remember the Milk, Toodledo, Tumblr, and wordPress. sMARTPhONE APPs: Android and Blackberry.
BLASTS FROM THE PASTwww.phonevite.com
Remember when your mom was a member of the school “phone tree?” Now many of us rely on text messages or emails to disseminate messages to several people quickly, but sometimes a voice mail blast works best. sign up for a free account at Phonevite. You can send a voice message to 25 calls at once. Great for updating meeting times, getting a message out on the go. For bigger networks, the premium level costs just a nickel per completed call. Basic service is FREE.
TURN PRINT INTO MULTIMEDIAwww.layar.com
A tool that can turn the printed page into a multimedia experience with help from a mobile app. Basic access is FREE.
FIND MY PHONEIt’s critical to set up your phone for remote tracking, locking or wiping — just in case it’s lost or stolen. The good news is the apps that let you do this are free, but the bad news is you need to do it ahead of time (read: before it’s too late). A
few options include Find My iPhone (for iPhone), Mobile Defense (Android), BlackBerry Protect (BlackBerry) and Find My Phone (windows Phone). These apps work in a similar way: you can see where the smartphone is on a map (usually on a computer) and if you like, remotely lock it with a PIN or wipe the data clean just to be on the safe side. You can also have the smartphone ‘ring’ loudly in case you think it’s stuck under a cushion somewhere. Basic access is FREE.
www.mdrealtor.org
28MARYLAND REALTOR® November 2012
MRIS Homes™ Mobile App: Impress Your Clients With Real Time AnswersToday’s real estate consumers are expecting immediate replies and real time data in minutes, not hours. According to a recent REAL Trends report*…
■ 45% of consumers upon initial contact to an agent expect a response within 15 minutes.
■ 56% of consumers expect a response from their agent within 30 minutes.
■ 89% of consumers said that response time was very important when choosing their agent.
Say “Hello” to Your New Mobile Office!
Responding to customers in real time is now easier than ever. MRIS Homes™ is the patented, GPS-enabled dual-purpose mobile app designed to give you direct access to the listing information you need whenever and wherever you are. No more phone calls to your assistant at the office or waiting until you are logged into your computer in a few hours.
If you haven’t downloaded the FREE app yet, now is the time. With MRIS Homes™, you can find nearby homes while out with a client, answer a question about a status on-the-fly, or even send listings right from your phone.
Search MRIS Anytime, Anywhere.
Quickly and easily view agent-only information by logging in with your MRIS ID and password (no PIN required) from your phone or tablet. Once you login, you can see the property history, distressed property information, days on market, compensation, agent remarks, showing instructions and much more. Plus, you can search all property statuses by MLS#, address, city/state or zip code, all while on-the-go. Now that’s Real Estate in Real Time™!
Connect with Consumers Faster.
Deliver stellar customer service by being able to deliver property information right to a potential homebuyer’s mobile
phone or tablet. Through the GPS search technology, you and your clients can view homes, rentals and open houses in a list, by exterior property photo or placed on the map. From the app, you can access your contacts through a direct link to Matrix Mobile, post properties on Facebook and Twitter or text and email listings to share with clients.
Want more? MRIS Homes™ refreshes every 10 minutes directly from the MRIS database which means you and potential homebuyers are searching the same, most accurate information.
3 Easy Ways to Download MRIS Homes™ Today.
■ Find it in the Apple, Android or BlackBerry app stores (also available for the iPad).
■ Text the word MRIS to the phone number 87778 to receive a download link right to your phone.
■ Type http://app.mrishomes.com into your mobile device or tablet’s browser for a direct download link.
There are also Agent Branded and Broker Branded App options available for an additional fee. Visit MRIS.com/Mobile for more information. Stay tuned to MRISblog.com for future enhancements planned to MRIS Homes™ including the ability to view full listing information and edit listings right from your phone.
M E T R O P O L I TA N R E G I O N A L I N F O R M AT I O N S Y S T E M S , I N C .
*REAL Trends 2012 Online Performance Study
Metropolitan Regional Information Systems, Inc. MRIS.com/Mobile
29MARYLAND REALTOR®
November 2012
www.mdrealtor.org
nce Upon a Time...
There was a house on Elm Street. And in this house lived:
A reformer.A revolutionary.A colonist. A GI’s mom.An immigrant.
The NATIONAL ASSOCIATION OF REALTORS® is the proud sponsor of these two exhibitions at the
SMITHSONIAN’S NATIONAL MUSEUM OF AMERICAN HISTORY.
• 14th Street & Constitution Avenue NW, Washington D.C. •10 a.m. to 5:30 p.m. daily • admission is free • www.americanhistory.si.edu/house
SmithsonianNational Museum of American HistoryKenneth E. Behring Center
Discover their stories and the importance of home at the Within These Walls exhibition.
And, see the newly-preserved Star-Spangled Banner that inspired our national anthem.
www.mdrealtor.org
30MARYLAND REALTOR® November 2012
Prudential PenFed Realty is and independently owned and operated member of BRER Affiliates, Inc. PenFed membership is not required to conduct business with Prudential PenFed Realty.
© 2012 BRER Affiliates Inc. An independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
M A R Y L A N D O F F I C E SAnnapolis 410-266-0600Bethesda 301-961-6000Canton 443-769-1700Crofton 410-721-3711Elkton 410-398-2401Federal Hill 410-547-5700Ft. Meade 410-519-4221Gaithersburg 301-948-4811Harford County 410-515-5300Howard County 443-325-7890Ocean City 410-524-7000
Ocean City West 410-520-2600Ocean Pines 410-208-3500Olney 301-260-7700Pikesville 410-484-8322Potomac Village 301-765-7653Roland Park 410-464-5500Salisbury 410-912-4700Severna Park 410-647-8000Silver Spring 301-879-2600Towson 410-828-4700Waldorf 301-870-7653
NORTH CAROLINA OFFICESFayetteville-Ft. Bragg 910-868-7196Fayetteville-Ravenhill 910-401-3330T E N N E S S E E O F F I C E SFt. Campell 931-647-8342St. Bethleham 931-503-8000 T E X A S O F F I C E SSan Antonio-Huebner 210-493-1733San Antonio-Waterford 210-545-7653 V I R G I N I A O F F I C E SAlexandria 703-836-1464Fairfax/Oakton 703-691-7653Hamilton 540-338-4171
Kingstowne 703-550-7653Lake Ridge 703-497-7788Leesburg 703-777-1250Manassas/Gainesville 703-396-6000Mark Center 703-379-0548Reston 703-716-2900Vienna 703-281-8500Winchester 540-722-9300Woodbridge 703-897-4663WASHINGTON D.C. OFFICESCapitol Hill 202-393-1111Uptown 202-243-4200
your company offered you access to millions of followers generated from our websites, ads in major newspapers in our regions, our social media presence and our affiliations with the Brookfield (formerly Prudential) Real Estate network?
Prudential PenFed Realty and our agents and services are continuously advertised to millions of people by our consistent ads in papers like the Washington Post, Baltimore Sun and other papers across the US as well as our ads on radio stations like WTOP in the DC/Baltimore areas and WOAI in San Antonio to name two. We are also highly visible on a wide variety of Social Media as well as via our websites!
Contact us to find out how many more closings to expect if your company was Prudential PenFed Realty!
For details and to arrange an office visit please contact any of our offices listed below or visit PenFedRealty.com.
Prudential PenFed Realty is Growing! We added two new Tennessee offices giving our agents more potential leads in the future! Grow your business! Join the Revolution Today!
What if...
Let’s revolutionize real estate together!
PFR Maryland Realtor Ad_Nov 2012.indd 1 7/31/12 1:50 PM
Taylor Properties Ad TK
Prudential PenFed Realty is and independently owned and operated member of BRER Affiliates, Inc. PenFed membership is not required to conduct business with Prudential PenFed Realty.
© 2012 BRER Affiliates Inc. An independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
M A R Y L A N D O F F I C E SAnnapolis 410-266-0600Bethesda 301-961-6000Canton 443-769-1700Crofton 410-721-3711Elkton 410-398-2401Federal Hill 410-547-5700Ft. Meade 410-519-4221Gaithersburg 301-948-4811Harford County 410-515-5300Howard County 443-325-7890Ocean City 410-524-7000
Ocean City West 410-520-2600Ocean Pines 410-208-3500Olney 301-260-7700Pikesville 410-484-8322Potomac Village 301-765-7653Roland Park 410-464-5500Salisbury 410-912-4700Severna Park 410-647-8000Silver Spring 301-879-2600Towson 410-828-4700Waldorf 301-870-7653
NORTH CAROLINA OFFICESFayetteville-Ft. Bragg 910-868-7196Fayetteville-Ravenhill 910-401-3330T E N N E S S E E O F F I C E SFt. Campell 931-647-8342St. Bethleham 931-503-8000 T E X A S O F F I C E SSan Antonio-Huebner 210-493-1733San Antonio-Waterford 210-545-7653 V I R G I N I A O F F I C E SAlexandria 703-836-1464Fairfax/Oakton 703-691-7653Hamilton 540-338-4171
Kingstowne 703-550-7653Lake Ridge 703-497-7788Leesburg 703-777-1250Manassas/Gainesville 703-396-6000Mark Center 703-379-0548Reston 703-716-2900Vienna 703-281-8500Winchester 540-722-9300Woodbridge 703-897-4663WASHINGTON D.C. OFFICESCapitol Hill 202-393-1111Uptown 202-243-4200
your company offered you access to millions of followers generated from our websites, ads in major newspapers in our regions, our social media presence and our affiliations with the Brookfield (formerly Prudential) Real Estate network?
Prudential PenFed Realty and our agents and services are continuously advertised to millions of people by our consistent ads in papers like the Washington Post, Baltimore Sun and other papers across the US as well as our ads on radio stations like WTOP in the DC/Baltimore areas and WOAI in San Antonio to name two. We are also highly visible on a wide variety of Social Media as well as via our websites!
Contact us to find out how many more closings to expect if your company was Prudential PenFed Realty!
For details and to arrange an office visit please contact any of our offices listed below or visit PenFedRealty.com.
Prudential PenFed Realty is Growing! We added two new Tennessee offices giving our agents more potential leads in the future! Grow your business! Join the Revolution Today!
What if...
Let’s revolutionize real estate together!
PFR Maryland Realtor Ad_Nov 2012.indd 1 7/31/12 1:50 PM
www.mdrealtor.org
32MARYLAND REALTOR® November 2012
Top 10 Benefits as a Maryland Association of REALTORS® Member
1. Lobbying/Advocacy—actively and effectively in the halls of Annapolis as the Voice for Real Estate in Maryland™
2. Legal Hotline—answers for questions on real estate legal matters
3. Up-to-Date Downloadable Statewide Forms
4. Education—GRI and Workforce Housing Certified (WHC) Professional Enhancement, industry specific Webinars, CE Classes from staff experts, Annual Conference and Tradeshow with nationally recognized instructors
5. Roadmap to Benefits of MAR Membership—a comprehensive online directory to the valuable benefits found at mdrealtor.org
6. Maryland REALTOR® Magazine—in depth housing research with county by county analysis of housing statistics, up-to-the-minute Real Estate Commission information and legal Q&A’s on hot issues affecting Maryland REALTORS®
7. Websites for Industry and Consumer Information— mdrealtor.org and marylandhomeownership.com
8. Leadership Academy—developing and strengthening leadership skills for business and association leadership
9. Mediation Services and Professional Standards Assistance
10. Discounts and Benefits from MAR Partners
Find us on Facebookmdrealtor.org More at
www.mdrealtor.org
33MARYLAND REALTOR®
November 2012
WAITING For Your Commission?
Convert your earned but unsettled commissions to CASH!
commissionexpress.com/chesapeake
443-302-9595
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Realtors Property Resource® (RPR®) to Launch November 1, 2012Beginning on November 1, 2012, RPR’s exclusive technology, which allows not public or consumer access will be available to all ReaLtoRS®. That means over 147 million properties nationwide will be at your fingertips! RPR allows you to remain at the center of the transaction, and to keep ahead of your technology empowered consumers.
Imagine being able to access the following in one location:
■ Tax assessment / public records on 147 million parcels of property in the U.S.
■ Mortgage and lien information
■ Nationwide school data, test scores and parent reviews
■ Dynamic mapping: School Zones, Neighborhoods, Zip Codes, Cities, FEMA etc.
■ Geo-spatial data including aerial photography, street level and bird’s eye view
■ Census, demographic and lifestyle data
■ Neighborhood information
If you are a member of MRIS, an RPR partner, your MLS data will be within the system, and you also will have access to:
■ Your Listings, photos and virtual tours
■ Largest national database by county of foreclosure, pre-foreclosure, REO and default
■ MLS active, sold, pending, expired, withdrawn and canceled statuses
■ Historic listing comparison tool
■ Realtor Valuation Model® (RVM®)
■ Refine property facts, comparables and RVM® for custom valuation report
■ Charts and Graphs will include trends calculated from MLS data
Starting on November 1st, these features will be available to you at no additional cost. We want to encourage you to take advantage of RPR, and all it has to offer. Go to http://blog.narrpr.com/rpr-partners/ and see the vast network of RPR partners.
See how other REALTORS® across the country are successfully using RPR with their clients and customers at www.myrpr.com.
Visit RPR’s Blog at blog.narrpr.com for more information, or sign up for a training class. And mark your calendars for November 1st!
www.mdrealtor.org
34MARYLAND REALTOR® November 2012
1-800-888-1272 • Monday and Wednesday • 10am – Noon and 2pm – 4pm www.mdrealtor.org • Complete an Online Form available in the Legal Hotline tab
FREE LEGAL HOTLINE
I represent a seller in a short sale transaction. Where can I find guidance about the lender’s procedure for handling offers that come in after the property is under contract? Also, I’ve heard a real estate licensee who fails to
notify the lender of all offers can be investigated for fraud. Is this true?
Let’s assume the seller and lender have agreed that a short sale is the best alternative. You have listed the property and received an offer that the seller accepts. Once the property is under contract, you
change the status in the MLS to Under Contract/Contingent because it’s subject to third party (lender) approval. Because buyers’ agents know it’s a potential short sale, they may advise buyers to pursue the property knowing that contracts are often not approved by the lender. As a consequence, many listing agents receive offers on short sales even after the property is under contract. There are best practices to follow under these circumstances.
Under Section 17-532(c)(1) of the Maryland Real Estate Brokers Act, a licensee shall, unless otherwise specified in the brokerage agreement, present in a timely manner all written offers or counteroffers to and from the client, even if the real estate is subject to an existing contract of sale or lease. The REALTOR® Code of Ethics contains a similar provision.
Given this requirement, the best practice is to ask the seller/client for instructions. In turn, the seller should ask the lender
for instructions according to its policy. If the lender requests the seller to forward offers after the property is under contract, and the seller requests you to do so, you must follow those lawful instructions and submit offers to the lender notwithstanding the property is under contract. Note that not all lenders will require this, so it’s important to ask and to place in the listing agreement exactly what those instructions are.
This raises some concerns, especially given recent developments in other states. The FBI is investigating brokers who handled short sale transactions to determine whether fraud on the lender was committed. According to certain sources, it is the FBI’s position that a broker who does not submit all offers to the lender could be charged with fraud. This applies even if the property is under contract.
I have several concerns about this. Certainly there is a potential problem. Although I am not personally aware of any wrongdoing here in Maryland, I have read accounts from other states where the process was manipulated to the benefit of the agents and brokers involved and to the detriment of sellers and lenders. If in fact legitimate offers are not presented in a timely manner and given full consideration by sellers, it’s clear that violations of Maryland law and the Code of Ethics have occurred, and that potential fraud on the lender has occurred if the offer would have increased the seller’s net, thereby decreasing the lender’s loss on the short sale.
However, one could argue that if the brokerage agreement specifies that the seller, after communicating with the lender,
From the hotlineC H A R L E S A . K A S K Y, E S Q U I R E
Q.A.
Continued
35MARYLAND REALTOR®
November 2012
www.mdrealtor.org
Charles A. Kasky, Esquire , Vice President of Legal Affairs Maryland Association of REALTORS®
directed the listing agent not to submit offers after the property was under contract, following that instruction cannot be considered fraud.
However, given what apparently the FBI is investigating, it makes sense to take appropriate steps to minimize risk. Regardless of what’s in the listing agreement, I recommend that all brokers discuss this matter with their attorneys and to document (perhaps by certified mail) that the broker has forwarded to the lender all offers received on the property. If the lender is only accepting contract information online and the system does not accept offers after a contract has been accepted, the letter should make a reference to this fact and state that the broker is forwarding all subsequent offers received as part of the broker’s duties, for whatever action the lender deems appropriate.
The goal here is to create a paper trail so there cannot be even an allegation that the broker failed to disclose information that could have resulted in a reduction in the amount of loss experienced by the lender or that would have affected the lender’s decision concerning the contract under consideration.
Visit us at rosedalefederal.com or call 410-668-4400.
Buying a home? There’s never been a better time to check out Rosedale Federal. We’re offering some of our lowest mortgage rates in years. And you can rest assured, your loan will stay right here, because we’ll never sell your loan
to out-of-town lenders. So call or visit us today, and let us be the fi rst to say, “Welcome home.”
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Real Estate Professionals can now take the guess work out of the 203K Contractor Process. One call sets in motion multiple licensed 203K Home Improvement Contractors to the home of your client for consideration. Process promotes competition. Your client may go on-line to view Contractor’s License, Insurance and History. Once job is complete you and client may enter comments to be used by future clients.
www.mdrealtor.org
36MARYLAND REALTOR® November 2012
*Coldwell Banker University is ranked #1 among all real estate company training programs nationwide and #9 among companies from all industries in Training Magazine’s 2012 Top 125 Training Organizations. ©2012 Coldwell BankerReal 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. 6129BALT-9/12
Why Coldwell Banker?
Our team of professionalsales associates is dedicated to creating exceptional real estate experiences for our customers by offering trulyremarkable service and globalresources with a network of3,100 offices, spanning morethan 50 countries.
Marketing
We will ensure your effectiveuse of our breakthrough marketing systems andyour success as a ColdwellBanker associate by offering unparalleled marketingprograms. We offer prospectingto closing marketing systemsthat will make you stand outfrom the crowd.
Technology
Coldwell Banker recognizesthe need for a true Internetmarketing strategy that’s goingto help you sell homes withease and efficiency. We give youthe technology to find and talkto buyers online. From an easyemail system to featuring youon more than 550 websites, we have you covered.
#1 Training*
Coldwell Banker provides continuing education, givingour associates a competitiveedge and helping thembuild, maintain and grow their business.
“I came to Coldwell Banker because of all of the great toolsfor agents to use. I stay here because of the constant advancement in technology, but also because of the integrityof the management within Coldwell Banker. I worked withthree other companies before finding my home!”
Tricia RoeSales AssociateColdwell Banker Residential Brokerage
What Makes Coldwell Banker®
ThePlace toBe? Just askour team…“We were looking for a company that would allow us the opportunity to grow our business. The support here isoutstanding; the programs, tech support, education and the outstanding staff have proven our decision correct.”
Lore Peterson & Wil TolbertSales AssociatesColdwell Banker Residential Brokerage
Trusted Agents with the Right Tools for Smarter Decisions
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6129_MD Realtor Ad REV4_Layout 1 9/27/12 3:46 PM Page 1
37MARYLAND REALTOR®
November 2012
www.mdrealtor.org
Housing Market Slowly Reviving
Residential salesA N I R B A N B A S U
Home Sales Prices on the Rise in MarylandA recent survey indicates that America’s optimism regarding the housing market’s recovery has improved significantly. According to Fannie Mae’s September 2012 National Housing Survey, a monthly poll of 1,000 homeowners and renters, more respondents expect home prices to rise in the next year (37 percent), and while the percentage of those anticipating declining home prices is down to 11 percent.
It is worth noting that such attitudes tend to become self-fulfilling prophecies. People are generally willing to pay more for an asset that they expect to appreciate in value.
Importantly, 19 percent of those surveyed say now is a good time to sell, the highest level since the survey began in June 2010. More buyers and sellers translates into a more active market, and that’s good for REALTORS®, title companies and of course, the buyers and sellers themselves.
Already, that renewed confidence, working in conjunction with record low or near-record low mortgage rates, is having an impact. According to the National Association of REALTORS®, national existing home sales rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million in August, up from 4.47 million in July. The number of existing home sales is now 9.3 percent higher than year-ago levels. The national median existing home price for all housing types was $187,400 in August, up 9.5 percent from one year ago.
Maryland’s housing market is also improving. According to data supplied by MRIS and the Coastal Association of REALTORS®, home sales rose 3.5 percent in July on a year-over-year basis, 9.6 percent in August and 6.1 percent in September. In September,
16 jurisdictions experienced year-over-year increases in existing homes sales: Queen Anne’s County (39.0%), St. Mary’s County (30.9%), Wicomico County (28.3%), Howard County (23.1%), Worcester County (19.0%), Baltimore City (17.4%), Montgomery County (10.7%), Harford County (9.8%), Anne Arundel County (9.7%), Caroline County (9.1%), Talbot County (7.7%), Cecil County (4.7%), Baltimore County (3.7%), and Garrett County (2.9%). Dorchester (107.7%) and Kent (100.0%) counties experienced the largest sales gains in percentage terms, but of course this performance is based on a low volume of sales. Unit sales in Dorchester County expanded from 13 to 27 on a year-over-year basis
in September, while sales in Kent County expanded from 11 to 22.
“ price dynamics continued to improve in recent months. average and median prices have expanded in Maryland for seven consecutive months through September.”
Continued
www.mdrealtor.org
38MARYLAND REALTOR® November 2012
Among the jurisdictions experiencing sales decreases in September were Somerset County (-50.0%), Washington County (-25.5%), Charles County (-17.7%), Calvert County (-8.4%), Carroll County (-7.9%), Prince George’s County (-6.3%), Allegany County (-5.7%), and Frederick County (-2.1%). Interestingly, a number of these jurisdictions are closely tied to the Washington metropolitan area and to the federal government. It may be the case that uncertainty regarding scheduled automatic federal spending cuts and other budgetary issues are suppressing confidence in these areas, translating into reduced sales volume.
Price dynamics continued to improve in recent months. Average and median prices have expanded in Maryland for seven consecutive months through September. In July, average statewide sales price was up 3.8 percent on a year-over-year basis, while median price rose 7.8 percent. Of Maryland’s 24 jurisdictions, 14 experienced year-over-year increases in average sales price in July, while 18 recorded an increase in median sales price. The largest year-over-year increases were in Kent County (average sales price rose 40 percent and median sales price increased 18.2 percent) and Baltimore City (average sales price was up 19.6 percent and median sales price rose 40.6 percent.)
In August, average statewide sales price was up 2.7 percent compared to August 2011, and median price increased 5.9 percent. Eighteen jurisdictions had increases in average sales price in August, and 16 recorded an increase in median sales price.
Dorchester County had the largest increase in average sales price in August, where average price rose from $163,984 to $232,817, an increase of 42 percent. Kent County average price rose 36 percent, from $214,250 in August 2011 to $291,389 one year later. Though these are relatively small jurisdictions in terms of population, the magnitude of improvement supports the
proposition that the housing market’s pace of recovery has accelerated. Price dynamics were even better in September. Statewide, average sales prices were up 6.1 percent, while median prices increased 6.8 percent.
Looking AheadMany economists believe that the housing market bottomed toward the end of 2011. This year has been one of improvement, as low mortgage rates, ongoing job creation and growing confidence have ushered in welcome market dynamics. Unit sales and price are up and forward looking indicators are also promising. Pending sales in Maryland were up on a year-over-year basis in both August and September. Statewide, pending units were up 12 percent, from 4,986 in September 2011 to 5,609 in September 2012.
In Baltimore City, pending unit sales totaled 424 in September 2011. One year later, that figure stood at 552, an improvement slightly in excess of 30 percent. In Carroll County, pending units rose from 119 to 164 during the past year and in Baltimore County, pending units are up from 585 to 644. They may also have fewer choices from which to select. The active inventory of unsold homes in Maryland continues to decline. In September 2011, months of inventory stood at 8.5 months. One year later, inventory has dropped to 6 months, which means that market equilibrium has been achieved at last. Seven Maryland jurisdictions have even less, including Montgomery (3.2 months), Prince George’s (3.5 months), Howard (3.8 months), Frederick (4.4 months), Baltimore (5.2 months), Anne Arundel (5.5 months) and St. Mary’s (5.8 months) counties. Based on pending sales, inventory is likely to continue to fall, increasing prospects for additional home price appreciation.
Increasingly, REALTORS® can credibly claim that the best time to buy is now, and that if prospective buyers wait too long, they may miss out on highly advantageous mortgage rates and will end up paying more for the dream.
“ in august, average statewide sales price was up 2.7 percent compared to august 2011, and median price increased 5.9 percent. eighteen jurisdictions had increases in average sales price in august, and 16 recorded an increase in median sales price.”
“ the active inventory of unsold homes in Maryland continues to decline. in September 2011, months of inventory stood at 8.5 months.”
Anirban Basu, Sage Policy Group, Inc.
www.mdrealtor.org
July 2012 vs. 2011
UNITS AVERAGE PRICE
2012 2011 Change 2012 2011 Change
Figures reflect resales and new properties. Residential resales
are reported by MRIS® and local boards MLS systems.
COUNT Y
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
39 48 -18.8% $106,478 $124,693 -14.6%
538 447 20.4% $369,434 $374,916 -1.5%
448 467 -4.1% $172,663 $144,388 19.6%
642 616 4.2% $261,723 $247,553 5.7%
107 96 11.5% $313,652 $328,491 -4.5%
25 25 0.0% $129,816 $120,172 8.0%
133 128 3.9% $303,998 $305,840 -0.6%
79 72 9.7% $235,513 $226,378 4.0%
122 149 -18.1% $237,534 $229,627 3.4%
16 21 -23.8% $184,522 $159,819 15.5%
216 221 -2.3% $265,876 $261,019 1.9%
20 25 -20.0% $263,810 $395,040 -33.2%
245 242 1.2% $252,597 $253,102 -0.2%
316 276 14.5% $439,347 $430,834 2.0%
18 17 5.9% $285,456 $203,940 40.0%
972 907 7.2% $499,413 $492,617 1.4%
712 739 -3.7% $190,299 $181,825 4.7%
42 43 -2.3% $361,740 $355,943 1.6%
8 13 -38.5% $93,188 $97,879 -4.8%
77 87 -11.5% $279,087 $272,694 2.3%
37 22 68.2% $289,432 $530,220 -45.4%
98 100 -2.0% $159,680 $145,787 9.5%
71 60 18.3% $157,774 $167,013 -5.5%
141 128 10.2% $240,267 $273,706 -12.2%
5,122 4,949 3.5% $307,383 $296,022 3.8%
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38MARYLAND REALTOR® November 2012
Sept. 2012 vs. 2011
UNITS AVERAGE PRICE
2012 2011 Change 2012 2011 Change
33 35 -5.7% $99,578 $84,352 18.1%
473 431 9.7% $371,460 $344,894 7.7%
426 363 17.4% $155,270 $121,147 28.2%
564 544 3.7% $255,090 $265,902 -4.1%
76 83 -8.4% $344,878 $307,616 12.1%
24 22 9.1% $149,496 $180,118 -17.0%
129 140 -7.9% $256,262 $274,540 -6.7%
67 64 4.7% $223,603 $211,231 5.9%
107 130 -17.7% $226,865 $236,790 -4.2%
27 13 107.7% $169,059 $111,363 51.8%
191 195 -2.1% $274,931 $253,302 8.5%
36 35 2.9% $284,528 $351,468 -19.0%
191 174 9.8% $262,608 $259,630 1.1%
272 221 23.1% $409,935 $416,841 -1.7%
22 11 100.0% $235,654 $315,175 -25.2%
745 673 10.7% $460,654 $436,709 5.5%
594 634 -6.3% $189,907 $177,909 6.7%
57 41 39.0% $355,099 $309,641 14.7%
5 10 -50.0% $95,700 $122,175 -21.7%
106 81 30.9% $315,434 $274,212 15.0%
42 39 7.7% $601,277 $545,382 10.2%
79 106 -25.5% $142,559 $157,606 -9.5%
68 53 28.3% $152,892 $150,135 1.8%
144 121 19.0% $281,442 $247,501 13.7%
4,478 4,219 6.1% $295,415 $278,520 6.1%
Figures reflect resales and new properties. Residential resales
are reported by MRIS® and local boards MLS systems.
COUNT Y
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
Aug. 2012 vs. 2011
UNITS AVERAGE PRICE
2012 2011 Change 2012 2011 Change
Figures reflect resales and new properties. Residential resales
are reported by MRIS® and local boards MLS systems.
COUNT Y
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
26 39 -33.3% $95,196 $99,619 -4.4%
545 445 22.5% $367,710 $349,735 5.1%
471 408 15.4% $161,766 $140,420 15.2%
682 599 13.9% $247,842 $251,376 -1.4%
81 100 -19.0% $307,248 $327,010 -6.0%
21 18 16.7% $166,504 $137,648 21.0%
154 138 11.6% $302,747 $276,113 9.6%
70 72 -2.8% $231,631 $284,304 -18.5%
156 138 13.0% $236,914 $227,687 4.1%
15 20 -25.0% $232,817 $163,984 42.0%
259 227 14.1% $291,091 $266,784 9.1%
32 31 3.2% $320,684 $292,561 9.6%
229 186 23.1% $263,386 $251,520 4.7%
324 270 20.0% $407,079 $421,201 -3.4%
18 8 125.0% $291,389 $214,250 36.0%
934 847 10.3% $472,006 $498,944 -5.4%
702 719 -2.4% $192,613 $179,654 7.2%
47 38 23.7% $383,864 $347,200 10.6%
10 14 -28.6% $117,140 $103,661 13.0%
94 89 5.6% $299,676 $299,438 0.1%
39 44 -11.4% $484,597 $398,780 21.5%
107 126 -15.1% $186,591 $144,747 28.9%
69 68 1.5% $171,935 $143,552 19.8%
145 128 13.3% $249,357 $247,879 0.6%
5,230 4,772 9.6% $300,805 $292,966 2.7%
41MARYLAND REALTOR®
November 2012
www.mdrealtor.org
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Source: Information included in this report is based on data supplied by MRIS and its member Association(s) of REALTORS, who are not responsible for its accuracy. Does not refl ect all activity in the marketplace. January 1, 2011 – December 31, 2011. Information contained in this report is deemed reliable but not guaranteed, should be independently verifi ed, and does not constitute an opinion of MRIS or Long & Foster Real Estate, Inc. ©2012 All Rights Reserved.Exclusive affi liate of Christie’s International Real Estate in select areas.
