April May 2013 by Jermaine Hawkins

VOLUME XLVII Number 3

The Maryland Association of REALTORS速

APRIL | MAY 2013

www.mdrealtor.org

速

The Voice for Real Estate in Maryland

Fair Housing FAQs

Volunteer for MAR Committees

MAR Industry Awards Call For Entries

15 Registration Opens April 10 Consumer Website: www.marylandhomeownership.com

Maryland 速 REALTORS Promote Fair Housing

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President’s Perspective

C A R LT O N J . B O U J A I , J R .

Engagement Is Key 2013 Legislative Session

s we go to print, the Maryland General Assembly is about to conclude its 2013 session. MAR’s Legislative Committee reviewed over 200 of the 2,500 bills introduced. We testified and lobbied on many of them, including most notably: opposing state-wide rent control; supporting easier financing rules for homeowners with secondary mortgages; opposing mandatory lead dust tests for all pre1978 property sales; and supporting legislation to clarify that real estate agents do not have to apply for a credit services license to participate in short sales transactions. While our success at the state level is important, our industry faces significant policy challenges at the federal and county level as well. That means that all of us must become

engaged at some level in the legislative process. And we’ve made that easy to do.

In This Issue

Our lobbyists at all levels keep you abreast of the issues that are directly impacting our profession. The most effective way for you to become involved is to respond to our calls to action.

Check out revised Fair Housing Resource Guide on page 15. It’s one of our most popular features, and this year again we’ve designed it as a pullout that you can keep as a ready-reference.

To make it even easier for you to respond and significantly increase our Calls for Action responses, simply download the NAR REALTOR® Action Center App to your smartphone. Go to www.mdrealtor.org for details, or scan the QR Code for the MAR website.

REALTORS® are on the Front Lines promoting Fair Housing

Fair Housing FAQs—keep this handy as a good reference when working with diverse clients and customers Fair Housing Poster Contest— Our annual nationally recognized event, featuring artwork by children around the state. The winning posters will be featured in the 2014 MAR Fair Housing Calendar. See page 12 for full story. Disparate Impact Rule Released— Check out our Legal Department’s analysis of the new rule. See From the Hotline article, page 33.

Registration Opens April 10th. Visit www.mdrealtor.org

www.mdrealtor.org

MARYLAND REALTOR® APRIL | MAY 2013

TA B L E O F CO N T E N TS FEATURES

MARYLAND REALTORS® PROMOTE FAIR HOUSING Fair Housing Protected Classes in Maryland

FAIR HOUSING FAQS

WHAT IS A BLOG?

“DIVERSITY MAKES GREAT NEIGHBORHOODS” 2014 Poster Contest

CALL FOR MAR COMMITTEE VOLUNTEERS

MARYLAND REALTORS® PROMOTE FAIR HOUSING Fair Housing Protected Classes in Maryland

CALL FOR ENTRIES MAR Prestigious Awards

DEPARTMENTS PRESIDENT’S PERSPECTIVE REGULATION NEWS Advertising—Everything You Need to Know but Probably Were Afraid to Ask

FAIR HOUSING FAQS

WHAT IS A BLOG?

MARYLAND REALTOR® APRIL | MAY 2013

MAR POSTER CONTEST

RESIDENTIAL SALES

MARYLAND REAL ESTATE COMMISSION NEWS

SNIPPETS

COMMERCIAL CONNECTION Commercial Real Estate Agency in Maryland

FROM THE HOTLINE Fair Housing News— Disparate Impact Rule Released

www.mdrealtor.org

2013 Maryland Association of REALTORS® Leadership Team

Maryland Association of REALTORS® 200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348 800.638.6425 | www.mdrealtor.org

Executive Leadership Team Carlton J Boujai Jr

J Russell Boyce

President EXIT Realty Prosperity Group 5300 Westview Drive Suite 105 Frederick, MD 21703-8339 301.698.8700 carltonboujai@mris.com

President Elect RE/MAX 100 10665 Stanhaven Place White Plains MD 20695-3062 301.843.5100 russboyce@remax.net

Editor Deborah L Hager | debbie.hager@mdrealtor.org

Advisory Committee Yolanda R Muckle | Chair Thomas P Levin | Vice Chair

Advertising Arlene Braithwaite | 410.772.0820

Publication Design HBP, Inc., 952 Frederick Street, Hagerstown, MD 21741 800.638.3508 | www.hbp.com

Carole A Maclure

Janice R Kirkner

Treasurer RE/MAX Advantage Realty 17304 Evangeline Lane Olney, MD 20832-2928 240.295.6000 maclure7@aol.com

Secretary Long & Foster Real Estate, Inc. 1208 Nottingham Drive Westminister, MD 21157-8334 410.795.9600 Janice.kirkner@longandfoster.com

Patricia A Terrill

Mary C Antoun

Immediate Past President Prudential PenFed Realty 7501 Coastal Highway Ocean City, MD 21842-2937 410.524.7000 Fax 410.524.5695 pat.terrill@gmail.com

Chief Executive Officer Maryland Association of REALTORS® 200 Harry S Truman Parkway Suite 200 Annapolis, MD 21401-7348 800.638.6425 mary.antoun@mdrealtor.org

MARYLAND REALTOR® APRIL | MAY 2013

Mission Statement The 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®: Q 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; Q Assists members in ethically and professionally serving the public; Q Promotes and preserves the right to own, transfer and use real property; and Q 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.

www.mdrealtor.org

FAIR HOUSING

April is Fair Housing Month for REALTORS®. Here are useful facts when working with diverse clients and customers.

Number 4—Unlucky? The number 4 is considered bad luck in Far East cultures because the pronunciation in Japanese and Chinese is very similar to the pronunciation of the word for “death.” Many buildings in heavily Asian areas do not have a fourth floor (or 14th or 24th, etc.) much like the way North American cultures treat the number 13. An address that includes the number 4 may be unacceptable to recent immigrants from these cultures. In Japan, Korea and China, the number 8 is considered a lucky number to the point of obsession because it sounds like the word for prosper or wealth In Cantonese, the pronunciation of the number 8 is similar to the phrase “good luck.”

The Essence of Diversity “To effectively communicate, we must realize that we are all different in the way we perceive the world and use this understanding as a guide to our communication with others.” —ANTHONY ROBBINS

MARYLAND REALTOR® APRIL | MAY 2013

www.mdrealtor.org

Minority Population Share for Maryland’s Jurisdictions http://planning.maryland.gov/msdc/census/cen2010/PL94-171/ map/MinShare10.pdf Percent of Maryland’s 2010 Population which is Minority, by Single Year of Age (Minority is defined as everyone other than non-hispanic Yea white alone.) wh htt http://planning.maryland.gov/msdc/census/cen2010/SF1/ h PercentMinority%20by%20SIngle%20Year%20of%20Age.pdf P er

Disability means just another kind of difference, like culture, ethnicity, gender or sexual orientation. We recognize that diversity is a valuable source of insight and adaptability. Differing abilities are a part of that healthy diversity. When talking about disabilities, it’s better to say, a person or people with disabilities. A disability is what someone has, not what

someone is. Also, use the words, accessible parking instead of handicapped parking because the term handicapped is offensive and is disappearing in most contexts. Accessible describes the parking and handicapped does not.

“There are two types of people—those who come into a room and say, Well, here I am! and those come into the room and say, Ah, there you are!” —FREDERICK COLLINS

MAR Fair Housing Resource Guide www.mdrealtor.org On the drop down menu access: > Housing and Statistics, > Fair Housing and then, > Local Resource Guide.

Which one are you?

www.mdrealtor.org

MARYLAND REALTOR® APRIL | MAY 2013

Defining the Generations Matures (born prior to 1946) The term was coined by marketing researchers, Yankelovich Partners, Inc. Baby Boomers (born 1946 through 1964) The term was coined by Landon Jones, author of Great Expectations, a book chronicling the Boomer generation. Generation X (born 1965 through 1980) The term was coined by author Douglas Coupland in his novel, Generation X. Millennials (born 1981–1999) The term was coined by sociologists Neil Howe & William Strauss. Alternates include Generation Y, Generation Why?, Nexters, and Internet Generation. These dates represent the US Census birth curve. There are some different interpretations among those who study these issues as to where each generation begins and ends demographically. For a full list of generation definitions, see: http://www.gentrends.com/faq.html#DefiningtheGenerations

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MARYLAND REALTOR® APRIL | MAY 2013

www.mdrealtor.org

What is a

BLOG? B

logs are no longer just someone’s ramblings and private journal. Blogs are a vital resource of information, interaction, news, commentary and inspiration. A blog is a website to which you add commentary on an regular basis. New information ends up at the top of the blog so people can scan and see your articles by date. Readers can interact with you by posting comments, adding links, or sharing blog posts via email or other social media sharing tools. Blogs are conversational. Blogs are generally considered successful when the content consumers read convinces them to work with real

www.mdrealtor.org

estate agents. When you blog, you provide the platform on which others build relationships. You will also be strengthening your own reputation as a provider of such a platform. While nothing beats a face-to-face meeting, the increase in today’s web-based business relationships makes it impossible to have such meetings with every client. Blogs should be brief and to the point so busy people can gain knowledge quickly and can be an alternative form of communication when a face-to-face meeting isn’t an option. Today’s consumer can form an opinion of you by reading your posts before they ever meet you in person.

MARYLAND REALTOR® APRIL | MAY 2013

Advantages to Blog:

Blogs an d their i nteracti have be ve natu come w re o v e n of today into the ’s comm fabric unicatio n tools.

O Position you as an expert on issues impacting the community you serve O Keep you top-of-mind for potential clients

Content iis Key. C K

O Be used as an outlet to drive people to your real estate listings

If your ideas and information are not relevant, even the best design or headline won’t create return readership.

O Build social capital (credibility on- and offline) O Spread a message O Establish credibility and authority O Connect you with groups of interested readers O Provide networking opportunities

Create A Blog Worth Visiting Your blog needs to be a site worth visiting. You have a very short window to capture the person’s attention who ventures onto your site—you also have a responsibility to keep your site interesting so visitors return!

Here are a few key elements to measure a blog’s effectiveness. O Does it make a good first impression? You only get one chance to do this. O Does it have relevant and updated content on the topics you focus on? O Can it answer the questions about specifics within your topic? O Does the information you discuss in your blog relate to your site? O Is it interactive? O Are there items the consumer can download, videos to view, or links to click on and share? O Is your site easy to navigate?

REALTORS® can establish themselves as experts on a variety of valuable homeownership facts and critical information about neighborhoods .

O Are your posts easy to read? O Do you use graphics and photos? O Do you have a call to action? O Can the reader easily find your contact information to ask questions? O Do you allow comments? Find a niche for your blog that will set you apart from the competition and generate more readership. Remember, a local real estate blog can concentrate on events, happenings, businesses, and issues in a specific community. Excerpted from the Social Media for REALTORS®: Blogging compiled by the National Association of REALTORS®. The booklet is a part of the Social Media for REALTORS® Series that can be found www.realtor.org or contact nhata@realtors.org

MARYLAND REALTOR® APRIL | MAY 2013

www.mdrealtor.org

â&#x20AC;&#x153;Diversity Makes Great Neighborhoodsâ&#x20AC;? IN

2014 POSTER CONTEST

ach year year, members of the Maryland Association of REALTORSÂŽ (MAR) Equal Opportunity/ Cultural Diversity Committee partner with local schools and organizations to encourage and promote understanding of equal opportunity in housing through a Poster Contest. The theme for the this yearâ&#x20AC;&#x2122;s poster drawings is â&#x20AC;&#x153;Diversity Makes Great Neighborhoods.â&#x20AC;? Winners are chosen from three entries submitted by the MAR local boards and associations. Fourteen winners were chosen, including one to appear on the cover of a colorful calendar. Students from around the state in grades K-8 are eligible to participate. They are asked to illustrate the theme and what it means to them. Winners are awarded with certificates and a gift card co-sponsored by BB&T Bank. Winners, their family members, faculty, REALTORSÂŽ and dignitaries will be invited to attend a recognition ceremony at the Maryland Statehouse. Maryland Attorney General Doug Gansler will present the students with their certificates. This April marks the 45th anniversary of the enactment of the federal Fair Housing Law, Title VII of the Civil Rights Act of 1968, prohibiting discrimination on the basis of race, color, creed, national origin, sex, familial status and handicap

and encourages fair housing opportunities for all. The Calendar Poster Contest is a visible way for Maryland REALTORSÂŽ to express their professional commitment to Fair Housing. It has become popular with schools and communities as well as the real estate profession as a highly effective way to raise public awareness of the laws prohibiting housing discrimination. And it celebrates our commitment to making housing available to all. The more than 10,000 free calendars are distributed statewide and nationally to promote the principles of Fair Housing.

Calendar Contributions: Join your colleagues by giving a contribution to help defray the 2014 calendar production costs. Your name and company will appear on the â&#x20AC;&#x153;contributorâ&#x20AC;? recognition page of the calendar. Over 10,000 calendars will be distributed. All contributors will receive calendars. Find the Contribution Form: http://www.mdrealtor. org/Portals/0/files/2014%20FAIR%20HOUSING%20 CALENDAR%20SPONSORSHIP%20FORM.doc

Shannon Anderson Howard County Association )BSQFST $IPJDF .JEEMF 4DIPPM r UI (SBEF

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MARYLAND REALTOR APRIL | MAY 2013

Rachel Antony Greater Capital Area Association www.mdrealtor.org 4U &MJ[BCFUI 4DIPPM r UI (SBEF

Meghan Bittinger Garrett County Board #SPBEGPSE &MFNFOUBSZ r UI (SBEF

Alyssa Dixon Carroll County Association 'SJFOETIJQ 7BMMFZ &MFNFOUBSZ 4DIPPM r 5th Grade

Galen Marquess Mid-Shore Board 5IF $PVOUSZ 4DIPPM r UI (SBEF

Fiona Pando Coastal Association 8PSDFTUFS 1SFQBSBUPSZ 4DIPPM r UI (SBEF

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Erin Bourn Harford County Association #FM "JS .JEEMF 4DIPPM r UI (SBEF

Abigail Haffey Frederick County Association /FX -JGF $ISJTUJBO 4DIPPM r UI (SBEF

Hannah Middlekauff Pen-Mar Regional Association 3PDLMBOE 8PPET r OE (SBEF

Brayden Pfieffer Cecil County Board #BJOCSJEHF &MFNFOUBSZ 4DIPPM r UI (SBEF

Jackson Bryant Anne Arundel Association 3PMMJOH ,OPMMT &MFNFOUBSZ 4DIPPM r OE (SBEF

Nia Johnson Prince George’s County Association )JHIMBOE 1BSL &MFNFOUBSZ 4DIPPM r SE (SBEF

Katie Murphy Southern Maryland Association 'BUIFS "OESFX 8IJUF r UI (SBEF

Alexis Phillips Greater Baltimore Board ."34 &TUBUFT 1BM r UI (SBEF MARYLAND REALTOR® APRIL | MAY 2013

GET INVOLVED! â&#x20AC;&#x153;MAR Volunteersâ&#x20AC;&#x201D;We Want You!â&#x20AC;? Building on the Strength of our Members Committee Year: 2013â&#x20AC;&#x201C;2014 EASY ON-LINE FORMâ&#x20AC;&#x201D;Available April 1, 2013 Go to MARâ&#x20AC;&#x2122;s Website or Click on This Link: http://www.mdrealtor.org/cvf SIGN UPâ&#x20AC;&#x201D;Please be sure to give us 2, but no more then 3 committees that you are interested in serving on, every attempt will be made to accommodate your request for at least one committee assignment (some committees may have specific member qualifications). COMPLETE AND SUBMITâ&#x20AC;&#x201D;Itâ&#x20AC;&#x2122;s that easy! You will be emailed an â&#x20AC;&#x153;Instant Confirmationâ&#x20AC;? when your form is successfully submitted. DEADLINE: Monday, May 6, 2013 Reminderâ&#x20AC;&#x201D;All Current Committee Members Must Complete a Form Committee selections are prioritized by qualifications and date received. You will receive a letter confirming your committee appointment by mid August.

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i s n u g o A H c r i t a F

When to Use the Equal Opportunity Logo?

The Fair Housing Act itself does not require the use of Equal Opportunity logo or slogan, “Equal Housing Opportunity,” in any ad. However, using the logo regularly is good evidence of the company’s commitment to fair housing compliance. The equal housing opportunity logo is a picture of a small house with the words “equal housing opportunity” directly beneath it. Note that the small house picture cannot be used without the words “equal housing opportunity” beneath it, but the words can be used without the small house picture.

According to HUD guidelines, all advertising of residential real estate for sale or rent should contain an equal housing opportunity logotype, statement, or slogan as a means of educating the home-seeking public that the property is available to all persons, regardless of race, color, religion, sex, handicap, familial status, or national origin. The choice of logotype, statement, or slogan will depend on the type of media used and, in space advertising, on the size of the advertisement.

Get the Equal Opportunity Logo: http://portal.hud.gov/hudportal/HUD?src=/library/bookshelf11/hudgraphics/fheologo

Equal Housing Opportunity Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

Guidelines for Using the Equal Opportunity Logo (in all ads of four column inches or larger):

www.fairhousing.com/index.cfm?method=page.display&pagename=regs_fhr_109apx

Fair Housing Regulations Require the Display of the HUD Fair Housing Poster at the Brokerage Office and at Dwellings Under Construction

Get the HUD Fair Housing Poster Form HUD-928.1 (2/2003): www.hud.gov/offices/fheo/promotingfh/928-1.pdf Previous versions obsolete—information is current as of April 2013.

Protected Classes & Their Definitions ( A P P LI C A B LE TO M A RY L A N D J U R I S D I C TI O N S, F E B RUA RY 2 0 1 3)

Federal Color: Pertaining to a person’s skin color Familial Status: Families in which one or more children under 18 live with: a parent; a person who has legal custody of the child or children; or the designee of the parent or legal custodian, with the parent or custodian’s written permission. Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18. National Origin: Refers to country of birth. Physical or Mental Disability: In reference to you or someone close to you who: has a physical or mental disability (including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS-related Complex and mental retardation) that substantially limits one or more major life activities; has a record of such a disability; or is regarded as having such a disability. Race: Categories of physical characteristics and/or genetic groupings of human populations. Religion: Participation with one of the world’s structured religions; one’s spiritual beliefs; inference of religion by place of worship. Sex: Male or female.

Maryland

INCLUDES ALL FEDER AL P ROTE C TI O N S LI STE D A B O V E, P LUS:

Marital Status: The state of being single, married, separated, divorced, or widowed. Sexual Orientation: The identification of an individual as to male or female homosexuality, heterosexuality, or bisexuality.

*For detailed legal references by County, go to: http://www.mdrealtor.org/Portals/0/docs/ MARGeneral/Complete%20Fair%20Housing%20 Resource%20guide_20133%20final.pdf and download a copy of the MAR Fair Housing Resource Guide.

Local & Counties

I N C L U D E S A L L F E D E R A L & S TAT E P R O T E C T I O N S L I S T E D TO T H E L E F T, P L U S :

Age: Generally referring to adults 18 yrs & over. Ancestry: Line of decent. Creed: A person’s beliefs; also, a summary of principals or opinions to which someone professes or adheres. Family Responsibility: Refers to decisions based on an assumption of a person’s care giving responsibilities, either childcare or care of another family member. Gender Identity: An individual’s having or being perceived as having a gender-related self-identity, self-image, appearance, expression, or behavior whether or not those gender-related characteristics differ from those associated with the individual’s assigned sex at birth. Genetic Information: Information about chromosomes, genes, gene products, or inherited characteristics that may derive from an individual or a family member; obtained for diagnostic and therapeutic purposes; and obtained at a time when the individual to whom the information relates is asymptomatic for the disease. (Genetic information” does not include: routine physical measurements; chemical, blood and urine analyses that are widely accepted and in use in clinical practice; tests for use of drugs; or tests for the presence of the human immunodeficiency virus.) Lawful Income: See below, ‘Source of Income’. Occupation: The principal lawful activity of one’s life, generally including students, welfare recipients and retired persons. Personal Appearance: The outward appearance of any person, irrespective of sex, with regard to hair style, facial hair, physical characteristics or manner of dress. Such term shall not relate to the requirement of cleanliness, uniforms or prescribed attire when uniformly applied for admittance to a public accommodation or to a class of employees for a customary or reasonable business. Political Opinion: The opinion of persons relating to government, the conduct of government, political parties, candidates for election or elected office-holders. Presence of Children: Households that include the temporary custody or permanent occupancy of persons under the age of 18 years. Source of Income: Any lawful source of money that is paid to or for the benefit of a renter or buyer of housing and includes grants, government assistance, alimony, child support, pensions, annuities, legal gifts, or investment earnings. The City of Baltimore protects alimony and child support as allowable sources of income.

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Maryland REALTORS® Promote Fair Housing *Use of a Guide Dog

i s n u g o A H c r i t a F

How Do You Recognize

Housing Discrimination? Under the Fair Housing Act, It is Against the Law to: O

Refuse to rent to you or sell you housing

Tell you housing is unavailable when in fact it is available

Show you apartments or homes only in certain neighborhoods

Set different terms, conditions, or privileges for sale or rental of a dwelling

Provide different housing services or facilities

Advertise housing to preferred groups of people only

Refuse to provide you with information regarding mortgage loans, deny you a mortgage loan, or impose different terms or conditions on a mortgage loan

Deny you property insurance

Conduct property appraisals in a discriminatory manner

Refuse to make reasonable accommodations for persons with a disability if the accommodation may be necessary to afford such person a reasonable and equal opportunity to use and enjoy a dwelling.

Fail to design and construct housing in an accessible manner

Harass, coerce, intimidate, or interfere with anyone exercising or assisting someone else with his/her fair housing rights

It is Unlawful to Discriminate in Housing Based on These Factors... O

Race

Color

National origin

Religion

Sex

Familial status (families with children under the age of 18, or who are expecting a child)

Handicap (if you or someone close to you has a disability) — Marital Status (Maryland) — Sexual Orientation (Maryland)

Additional protected classes may apply based on County Codes.

If You Believe Your Rights Have Been Violated… View the complete guide to “Are You A Victim of Housing Discrimination?” http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12150.pdf Previous versions obsolete—information is current as of April 2013.

MAR s u o i g i t s Pre Awards

Call for Entries MAR takes great pride in awarding industry honors to outstanding REALTORS®. The awards are presented during the Annual Conference in Ocean City, September 9–11, 2013. Recognition is a positive reward for a job well done. It is vital that we honor those individuals who have given outstanding service to the real estate industry and the Local Associations. + + + +

To qualify, complete applications, or to learn more about each award, please visit: http://www. mdrealtor.org/Events/MARAnnualConference/ AwardsSummaryApplications/AwardsSummary.aspx All forms may be completed and submitted online, to MAR. The MAR Community Service Award—honors individual REALTOR® members who give unselfishly of their time to assist the communities in which they live. Individuals can submit an application directly to MAR and there is no limit to the number of entries submitted by Associations or firms for this award. All nominees submitted to Associations must be submitted to MAR. DEADLINE: JUNE 28, 2013 The Community Action and REALTOR® Excellence (CARE) Award—is given to Local Associations in community service and charitable actions. The award is designed to raise the profile of REALTORS® and the REALTOR® organization by focusing on Associations that have demonstrated an extraordinary record through direct local Association community service involvement. The activities complied by the Association may include endeavors by REALTORS® who are part of a group, team, office, or an individual of that local Association. Submissions are made by MAR local Associations. www.mdrealtor.org

MAR will conduct a survey among its members for their charitable endeavors and forward the aggregate data of those members to their local Associations for possible use in the submissions. The recipients will receive the following cash contribution to the charity of their choice: First Place—$10,000; 1st Honorable Mention—$5,000; The “Special Project” award, which may be considered as the 2nd Honorable Mention—$1,000. DEADLINE: JUNE 28, 2013 The REALTOR® of the Year (ROTY) Award—One ROTY application is required to be submitted by each local Association to be entered in the MAR competition. The winner of the state award will travel to National Association of REALTORS® (NAR) Annual Convention for consideration in the national award. This award is submitted directly to your local association for consideration. DEADLINE: CONTACT YOUR LOCAL ASSOCIATION. If you have comments or questions, please contact the Jermaine Hawkins, MAR Communications Department at 800-638-6425 ext. 3573; jermaine.hawkins@mdrealtor.org

MARYLAND REALTOR ® APRIL | MAY 2013

Regulation News

M A R K F E I N R O T H , ESQUIRE

ADVERTISING— Everything You Need to Know but Probably Were Afraid to Ask

aryland law defines an advertisement as any oral, written, printed or visual communication by a licensee that promotes either the licensee’s services or real property offered for sale or lease. It’s a broad definition, as it includes printed material such as business cards and magazine copy, correspondence, mailings, newsletters, brochures, for sale or lease signs, promotional items, automobile signs, radio and television announcements, telephone solicitations and internet or email communication.

Name of the team or group may not include words or phrases that might lead a member of the public to believe that the team is offering brokerage services as an independent real estate brokerage company. Terms such as “real estate” and “office” must be avoided.

Every Maryland real estate advertisement must contain these four basic elements:

1 2

Licensee’s name—either a properly registered trade name or the name as it appears on the real estate license; Name of the licensee’s real estate brokerage company—the company logo can be an acceptable alternative only if the logo contains the name of the company;

At least one telephone number that a consumer could use to contact the licensee’s broker or branch office manager without interference from the licensee; and

Fair housing logo if the advertisement offers property for sale or rent.

Advertisements may contain more than one phone number, such as a cell phone and or an agent’s direct dial business line. One of the phone numbers must allow a member of the public to reach a supervisor without an opportunity for the licensee to intercept the incoming phone call. A licensee whose advertisement contains a reference to membership in a real estate team or group is subject to three additional rules:

Name of at least one member of the team or group who is licensed by the Real Estate Commission. The team member’s name must either be a trade name registered with the Commission or the name as it appears on the person’s real estate license. The phone number requirement for team member advertisements is the same general rule that mandates at least one phone number for a consumer to reach either the broker or branch office manager with no licensee interference. The Real Estate Commission continues to apply the “meaningful and conspicuous” rule regarding the display of the licensee’s name and the brokerage company name in the advertisement. The test of whether the company appears in a meaningful and conspicuous manner is measured by asking a consumer member of the Real Estate Commission to examine the advertisement and then identify the name of the company. The Commission takes the position that advertisements appearing as internet web pages or on social media sites such as Facebook must be in compliance with Maryland real estate brokerage law and regulation. Finally, all licensees should carefully consider the truthfulness of there advertisements. Every fact in the advertisement must be true. Take care to review advertisements to ensure that they are accurate and contain no misrepresentation. Should you have any questions regarding advertisements or the regulation of real estate practice, please feel free to contact me at mark.feinroth@mdrealtor.org Mark Feinroth, Esquire, MAR Director of Regulatory affairs.

MARYLAND REALTOR® APRIL | MAY 2013

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EOE

Residential Sales

ANIRBAN BASU

We Present: A Sustained Housing Market Recovery Transition from a Buyer’s to a Seller’s Market Continues

rate of 4.92 million. This increase from 4.90 million in

the 11th consecutive month of year-over-year price

December is one of many indicators that the housing

increases, and the strongest gain since November 2005.

market remains on an upward trajectory. Indeed, on a

Maryland’s housing market dynamics are also positive,

year-over-year basis, existing home sales are up more

with both unit sales and prices posting gains in January

than 9 percent—impressive given overall economic

and February. According to data from MRIS and the

growth nationwide in the range of 2 percent.

Coastal Association of REALTORS®, home sales statewide

ccording to the National Association of

Home prices are also on the rise. The national median

REALTORS®, total existing-home sales in January

existing-home price for all housing types was $173,600 in

rose 0.4 percent to a seasonally adjusted annual

January, up 12.3 percent from January 2012. That marks

RESIDENTIAL SALES

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rose 10.7 percent in January on a year-over-year basis,

January 2013 vs. 2012

with 15 of Maryland’s 24 jurisdictions experiencing sales increases. These included Calvert County (59.1%), Allegany County (50.0%), St. Mary’s County (39.6%),

UNITS

AVERAGE PRICE

County

2013

2012

% Change

2013

2012

% Change

Allegany

50.0%

$96,399

$99,375

-3.0%

(15.0%), Anne Arundel County (13.4%), Carroll County

Anne Arundel

339

299

13.4%

$315,991

$346,579

-8.8%

(12.8%), Howard County (11.0%), Prince George’s County

Baltimore City

371

286

29.7%

$131,137

$138,074

-5.0%

Baltimore County

421

396

6.3%

$227,311

$214,711

5.9%

Calvert

59.1%

$271,771

$291,897

-6.9%

Caroline

0.0%

$141,238

$178,219

-20.8%

Carroll

12.8%

$284,001

$242,091

17.3%

Cecil

15.0%

$206,906

$227,240

-8.9%

Charles

1.1%

$214,905

$228,665

-6.0%

Dorchester

-5.0%

$157,816

$229,250

-31.2%

Frederick

165

120

37.5%

$264,552

$227,646

16.2%

Montgomery County unsold inventory has ranged from 2

Garrett

-33.3%

$264,761

$333,937

-20.7%

to 3 months, making it difficult for prospective buyers to

Harford

148

121

22.3%

$237,875

$249,454

-4.6%

Howard

171

154

11.0%

$379,165

$384,627

-1.4%

Kent

0.0%

$136,511

$205,994

-33.7%

Montgomery

521

530

-1.7%

$451,677

$415,887

8.6%

Prince George’s

573

526

8.9%

$183,837

$179,834

2.2%

Queen Anne’s

-21.9%

$294,655

$370,750

-20.5%

Somerset

-50.0%

$153,830

$134,870

14.1%

St. Mary’s

39.6%

$257,069

$273,193

-5.9%

Talbot

-20.7%

$430,096

$498,889

-13.8%

Washington

-8.3%

$142,154

$162,198

-12.4%

Wicomico

8.9%

$154,947

$144,454

7.3%

Worcester

17.6%

$250,209

$263,119

-4.9%

TOTAL 3,407

3,078

10.7%

$262,7400

$265,920

-1.2%%

Frederick County (37.5%), Baltimore City (29.7%), Harford County (22.3%), Worcester County (17.6%), Cecil County

(8.9%), Wicomico County (8.9%), Baltimore County (6.3%), and Charles County (1.1%). Jurisdictions with sales declines in January are generally smaller, with one noteworthy exception: Somerset (-50.0%), Garrett (-33.3%), Queen Anne’s (-21.9%), Talbot (-20.7%), Washington (-8.3%), Dorchester (-5.0%), and the exception, Montgomery (-1.7%) counties. (Sales were unchanged in January in Kent and Caroline counties.) Unit sales in Montgomery County likely dipped because of a lack of available inventory. In recent months,

find homes to purchase. Accordingly, in response to the low inventory, homebuilders are becoming more active in portions of the state, with much of the renewal in homebuilding taking place in Montgomery County and throughout Central Maryland. February continued the trend as unit sales increased 3.1 percent statewide on a year-over-year basis. Several jurisdictions saw very large increases, including Somerset (83.3%), Garrett (75.0%), St. Mary’s (47.2%), Queen Anne’s (26.7%), Charles (25.8%), and Calvert (20.5%) counties. Despite a small decline in average sales price in January, prices recovered in February and retain their upward trajectory. Average statewide sales price slipped 1.2 percent in January on a year-over-year basis, while median price rose 1.9 percent. The largest year-overyear median sales price increases in January occurred in

www.mdrealtor.org

Figures reflect resales and new properties. Residential resales are reported by MRIS ® and local boards MLS systems.

MARYLAND REALTOR® APRIL | MAY 2013

Allegany County, which posted a 32.0 percent jump (from

February 2013 vs. 2012 UNITS

$79,750 in January 2012 to $105,250 in January 2013), and in Frederick County, where median price increased

AVERAGE PRICE % Change

25.7 percent (from $196,450 to $247,000).

County

2013

2012

% Change

2013

2012

Allegany

-10.3%

$106,569

$73,597

44.8%

Anne Arundel

324

339

-4.4%

$340,861

$317,321

7.4%

Baltimore City

358

332

7.8%

$134,007

$143,386

-6.5%

2012. Sixteen jurisdictions reported higher average sales

Baltimore County

422

425

-0.7%

$220,935

$215,899

2.3%

prices compared to a year ago, while 15 reported higher

Calvert

20.5%

$306,672

$259,744

18.1%

Caroline

-11.8%

$146,917

$142,321

3.2%

Carroll

12.0%

$279,613

$259,917

7.6%

price rose 13.6 percent; Allegany County (21.3 percent

Cecil

12.5%

$169,166

$190,347

-11.1%

and 44.8 percent); and Frederick County, (17.4 percent

Charles

112

25.8%

$227,793

$227,356

0.2%

Dorchester

-54.2%

$153,036

$112,892

35.6%

Frederick

166

0.0%

$270,622

$230,000

17.7%

Garrett

75.0%

$245,389

$278,250

-11.8%

Combined with rising prices and mortgage rates still

Harford

117

120

-2.5%

$256,670

$225,936

13.6%

hovering near historic lows, buyers are likely to feel a

Howard

146

163

-10.4%

$376,976

$368,968

2.2%

Kent

-7.7%

$177,042

$220,415

-19.7%

Montgomery

558

505

10.5%

$421,393

$391,552

7.6%

Prince George’s

542

540

0.4%

$188,017

$168,409

11.6%

Queen Anne’s

26.7%

$378,843

$333,441

13.6%

Somerset

83.3%

$122,727

$182,250

-32.7%

St. Mary’s

47.2%

$268,965

$252,548

6.5%

Talbot

-14.3%

$358,461

$453,948

-21.0%

Washington

-12.9%

$169,644

$143,609

18.1%

Wicomico

8.9%

$132,891

$151,991

-12.6%

Worcester

-9.3%

$265,256

$270,295

-1.9%

TOTAL 3,368

3,266

3.1%

$265,063

$249,448

6.3%

Prices generally climbed more rapidly in February, with the average statewide sales price up 6.3 percent and median price up 5.6 percent compared to February of

median sales prices. Several saw significant year-overyear price increases, including Queen Anne’s County, where median price increased 23.1 percent and average

and 17.7 percent). Given strong demand, available inventory is likely to continue to decline, compared to 2012 levels. That will induce further price increases during the year ahead.

level of urgency not experienced in many years, which will keep the housing market active for the foreseeable future. Increasingly, the source of market frustration (to the extent that it still exists) has transitioned from a lack of prospective buyers to a lack of available inventory. One possible scenario is that more people will put their homes up for sale during the months ahead than presently anticipated as more households recognize the expanding market for their properties.

Figures reflect resales and new properties. Residential resales are reported by MRIS ® and local boards MLS systems.

MARYLAND REALTOR® APRIL | MAY 2013

www.mdrealtor.org

Looking Ahead Pending sales are no longer rising briskly, due in large measure to dwindling inventory. This dynamic has become particularly evident in Prince George’s County, where pending unit sales are down from 1,188 in February 2012 to 990 in February 2013. Active inventory in Prince George’s County is down to 3.0 months. In Montgomery County, pending sales declined from 995 to 991 with active inventory down to just 2.6 months. The active inventory of unsold homes continues to decline statewide, falling from 8.3 months in February 2012 to 6.3 months one year later. There are some lingering dark clouds hanging over the local housing market. Job growth and accompanying household formation is likely to slow in Maryland as federal spending cuts associated with the sequester take hold, including furloughs among agency staff and government contractors. Maryland’s rate of job creation was below the national average even before sequestration. The gap in economic performance

FAMILY LIVES HERE

between Maryland and the balance of the nation is likely to widen going forward absent a reversal of sequestration. Fortunately, the national economy has outperformed expectations thus far in 2013 and financial market performance has been brilliant. If the national economy

RCR-Baltimore.com

and financial markets continue to perform, Maryland’s housing market will retain enough fuel to continue to heal. Anirban Basu, Chairman & CEO, Sage Policy Group, Inc.

To view all monthly and annual calculations of the Maryland housing statistics visit: Mdrealtor.org and scroll down the left sidebar to Housing & Statistics.

www.mdrealtor.org

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Maryland Real Estate Commission News

K AT H E R I N E C O N N E L LY

The Real Estate Commission is in the process of finalizing two proposed regulatory actions. The first is a revision of the disclosure requirement involving licensees and employees of real estate brokerage companies. The second is a new rule that will require a salesperson candidate to pass the license examination within one year of completing the pre licensing education.

nder the modified Code of Ethics regulation, a licensee is now required to disclose that the licensee is representing an immediate family member, a business entity in which the licensee has an ownership interest or an employee of the licensee’s real estate brokerage company or team. Final action on this revision of COMAR 09.11.02.02 will take place at the Commission’s March 20, 2013 meeting and the disclosure requirement will take effect twenty days after the Notice of Final Action is published in the Maryland Register, which is expected in April 2013. The full text of the regulation is on the Commission’s website at http://www.dllr.state.md.us/regs/propreg-mrec-com ar091102.shtml. The written notice may be given through the multiple listing service or another effective method of bringing the information to the attention of prospective buyers or lessees.

Lastly, the Commission would like to share with brokers the web portal address for downloading license certificates. This portal is only available to those brokers or branch office managers who have been emailed a license for one of their agents. We suggest saving the web address so that brokers are able to return to the site as needed to download certificates for affiliated agents. The website is https://www.dllr.state. md.us/cgi-bin/ElectronicLicensing/CIPS/Portal1. cgi?board=11&lib=DLLR .

The second regulatory action requires candidates to pass both sections of the licensing examination within one year after completion of their pre licensing course. A salesperson candidate who fails to pass within one year must complete another 60 hour pre licensing class to be eligible to take or retake the licensing test. Candidates who completed a pre licensing class prior to March 1, 2012 must pass both sections of the licensing exam no later than August 31, 2013 to avoid being required to take another pre licensing course before taking the test.

As always, if you have questions concerning the Real Estate Commission, please feel free to contact me at kconnelly@dllr.state.md.us

To check your own PERSONAL continuing education records for classes taken after January 1, 2013, go to https://www.dllr.state.md.us/cgi-bin/Electronic Licensing/RE/CE/CEquery1.cgi. We strongly suggest that you save this link to your desktop so you have access to it at your fingertips.

Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. If you have other questions regarding the digital CE record system or any other matter concerning your Maryland real estate license at contact her at kconnelly@dllr.state.md.us or visit http://www.dllr.state.md.us/license/mrec

We recommend that brokers and branch office managers speak with potential new agents about the need to take the licensing exam within one year of completion of the pre licensing course. The text of the regulation is available on the Commission’s website at http://www.dllr. state.md.us/regs/propreg-mrec-com ar09110111.shtml.

www.mdrealtor.org

MARYLAND REALTOR® APRIL | MAY 2013

SNIPPETS LAST MINUTE DEALS!

Flashlight

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Flashlight® for the iPhone and Brightest Flashlight FREE™ for Android—high ratings for both for a bright flashlight using the lighting from your phone. Flashlight® boasts as the ONLY flashlight app that goes with a compass. FREE.

Out of town clients are flying in at the last minute to look at homes with you and they need a place to stay. You find lastminute deals on unsold rooms, with discounts up to 70%. You book the deals easily and securely on your smartphone.

commoncraft.com Jing Capture an image of what you see on your computer screen by selecting any window or region, mark up your screenshot with a text box, arrow, highlight or picture caption, and decide how you want to share it. Easy and FREE. http://www.techsmith.com/jing.html

Don’t let the name fool you. This can be a great tool for Brokers who would like to offer “basic training” on social media, technology, etc. to their Agents. Heck! It’s a great way for Agents to learn about social media, RSS feeds, etc. on their own. Check out some of the introductory videos for FREE. There is a subscription fee.

Quickfiresocial Quickfiresocial.com In just 5 minutes a day, Quickfiresocial can provide you with hot, relevant and engaging content for your social media outlets. It will scour the Internet for you and autopost selected content on your Facebook page and blog. Fee $$. http://quickfiresocial.com/facebook/?src=homepage Mark your calendars for April 20 and 21, 2013—and join REALTORS® and associations throughout the U.S. and internationally for a weekend open house. Contact your local association for more information.

MARYLAND REALTOR® APRIL | MAY 2013

Key Ring App TThe Key Ring Rewards app— available for iPhone, Android, BlackBerry and Windows phones— literally life changing and it’s FREE!

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Planning An Event?

Which State is the “Happiest?”

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Gallup Healthways recently released its Well-being index giving insight into what states are the happiest—and saddest. Hawaii snagged the top spot on the list best known for sun and surf. A surprise in the last place is West Virginia. How did Maryland fare? Our state tied with South Dakota at 11th on the “happiest scale.” To view the study, go to: http://info.healthways. com/2012WellbeingIndex (Source: Weather.com)

Yapp lets you make your own mobile app for the big day. Guests download the app, which can include an invitation, a schedule of the day’s events, a news feed where guests can upload content and more. iPhone and Android.

Password Privacy Password Privacy App & Private Data Vault for iPhone & iPad and Password Safe for the Android. Keep track of all the passwords for your secure sites. FREE versions and $$.

PIKTOCHART Instantly build an infograph that will easily turn those boring stats into a cool presentation— FREE VERSION

Younity All your files, on all your devices, all the time— without syncing.— Your personal cloud. http://www.getyounity.com/ It’s FREE currently for iPhone (ios) only.

If you have a ‘ridiculously useful website’ to share with fellow REALTORS®, email: debbie.hager@mdrealtor.org

icon.me This app was made for REALTORS. A totally cool way to share your business card digitally. FREE

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®.

www.mdrealtor.org

MARYLAND REALTOR® APRIL | MAY 2013

Commercial Connection

E D S TA N F I E L D

Commercial Real Estate Agency in Maryland Agency law in Maryland is not the same for commercial and residential transactions. When modern day agency law was codified in Maryland in the late 1990s, it was drafted to apply only to the residential transaction.

o what determines agency law in Maryland for commercial practitioners? An extensive body of case law, also known as common law, pertains to all agency relationships, including those that arise in the commercial real estate industry. Common law originated over 850 years ago in England during the reign of King Henry II. His empire consisted of a loose and flexible connection of family and lands with different local customs applying to different territories. When disputes occurred, “decisions” were made by petitioning the King, who eventually became fed up with this process. So Henry created a system whereby judges were sent to the territories to decide cases. These judges began to follow each other’s decisions. Through this methodology, they created a unified or “common” law throughout the kingdom. Later, it was imported to the English colonies and in some (like Maryland’s) state constitutions, was adopted as the law of the state.

Under the common law, dual agency is permitted in a commercial transaction if it is disclosed and consented to by the parties. 30

MARYLAND REALTOR® APRIL | MAY 2013

Today in Maryland there are similarities and differences between commercial agency under the common law and the codified residential agency law. Commercial practitioners have the same fiduciary duties to a principal as their residential counterparts, namely the duties of loyalty, obedience, disclosure, confidentiality and accountability. In 2011, the Maryland Real Estate Commission (“MREC”), recognizing the many differences between residential agency law and commercial agency law, approved a Commercial Agency course designed for licensees who are primarily or exclusively commercial practitioners. In the course, one important issue taught is dual agency. Under the common law, dual agency is permitted in a commercial transaction if it is disclosed and consented to by the parties. Therefore, a broker or even an individual licensee can represent both parties in a transaction. The course also contains a section on illegal undisclosed dual agency and the types of remedies and damages a real estate broker’s client may claim in a lawsuit. Additionally, common law recognizes sub-agency, so the new commercial agency class covers subjects such as how sub-agency relationships are created, with whom a real estate agent typically enters into sub-agency and the duties owed by a sub-agent in a commercial transaction. I highly recommended that commercial practitioners take the course as it educates one on how to best represent the client and teaches best practices to avoid litigation under the common law of Maryland. 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.

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From the Hotline

C H A R L E S A . K A S K Y, E S Q U I R E

Fair Housing News— Disparate Impact Rule Released

I recently took a class in Fair Housing and the instructor mentioned that, even if a landlord does not intentionally discriminate, a practice can still be considered illegal. This question comes up often when deciding whether to participate in the Section 8 voucher program.

You are correct. We consistently advise members that participation in the federal Section 8 program is voluntary and the landlord is free to make a business decision whether to accept the vouchers. We have always mentioned the possibility that a facially neutral policy with a discriminatory impact may be a violation of the Fair Housing laws. Recently, the U.S. Department of Housing and Urban Development (HUD) released a final rule under which the “disparate impact” analysis can be applied to establish discrimination. Under the rule, plaintiffs can use statistical analysis to determine if discrimination and violations of the Fair Housing Act may be taking place, without showing intent to discriminate. The rule was released February 8th and will take effect 30 days after it is published in the Federal Register. The new rule adds a provision titled “Prohibiting Discriminatory Effects” to HUD’s existing Fair Housing Act (Act) regulations. Under the new provision, a defendant may be liable for practices with a discriminatory effect unless there is a legally sufficient justification. The showings and burdens of proof unfold as follows:

1. “Discriminatory Effect”: The plaintiffs may challenge any practice that “actually” or “predictably results” in a “disparate impact” on protected classes of individuals; or “creates, increases, reinforces, or perpetuates segregated housing patterns.” Thus, plaintiffs need not allege any intent to discriminate or any disparate treatment. 2. Business Justification: The defendant then has the burden of proving that the challenged practice is “necessary to achieve one or more substantial, legitimate, nondiscriminatory interests.” 3. “Less Discriminatory” Alternatives: Even if the defendant meets its burden under the second step, the plaintiff can still prevail by showing that the defendant’s interests could be served by some other practice “that has a less discriminatory effect.” HUD has long interpreted the Act to prohibit housing practices with an unjustified discriminatory effect, if those acts actually or predictably result in a disparate impact on a group of persons, or create, increase, reinforce, or perpetuate segregated housing patterns because of race, color, religion, sex, handicap, familial status, or national origin. There are strong legal arguments against the new rule, but until the Supreme Court decides the issue, district and appellate courts will likely continue to defer to the government’s interpretation.

The Legal Hotline hours of operation are Monday, Wednesday, & Friday 10AM–12 Noon and 2–4PM.

Charles A Kasky, Esquire, Senior Vice President, Maryland Association of REALTORS®.

MARYLAND REALTOR® APRIL | MAY 2013