VOLUME XLV Number 5
The Maryland Association of REaltors速
AUGUST/SEPTEMBER 2011
www.mdrealtor.org
The Voice for Real Estate in Maryland 速
p 14
on your area of Expertise
Consumer Website: WWW.MARYLANDHOMEOWNERSHIP.COM
Ten Steps to a Successful Settlement
p 17
p 24
Meet the Staff Maryland Association of REALTORS速
Multigenerational Housing is a Real Estate Growth Niche
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President’s Perspective Cathy A. Werner
Oh, What A Year…
My term as President is quickly coming to an end, so this is a good time
To the staff and AEs at the local associations and MAR: thank you for
to reflect on this past year.
caring and making it more than just a job. Your strength and focus help us to do our job even better. You are the bones in this real estate body.
I have seen first-hand how incredibly resilient our members are as we continue to face this challenging real estate market. Throughout the state,
And the Executive Committee: what a team! Thank you for everything
REALTORS are learning to adjust to this “normal” market and to help
we have accomplished together, and for your forward thinking, can-do
homeowners and future homeowners. They have passion and enthusiasm.
attitude and honest advice.
®
They also continue to take the time to give back to our industry and To my co-workers at RE/MAX® American Dream, my family and friends:
their community.
thank you for your continued support, patience and understanding in Thank you to all our volunteers at the Local, State and National level.
allowing me to give back to an industry that has allowed me to live my
Your gift of your time, commitment and endless energy makes our
American Dream.
successes possible. You are the blood of our association that keeps us I am proud to be a REALTOR®
alive and moving forward.
Warmest Regards, To everyone who has donated to RPAC again: thank you. You give us the power to continue to have a voice in the Legislative arena because of your generosity.
“Learn from the past, set vivid, detailed goals for the future, and live in the only moment of time over which you have any control: now.” – Denis Waitley
M A R Y L A N D R E A L T O R ® August/September 2011
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August / September 2011
? ? ? 10 ? R E A LTO R
®
SAFETY
quiz for Safety video
F eature s 8 Maryland Association of Realtors® Introducing Our 2012 President Patricia Terrill 10 Realtor® Safety Quiz for Safety 14 Focus on your area of expertise Ten Steps to a Successful Settlement
fice
nt around a property, how should you front of you as you move through the property.**
a self-guided tour.
14
et a new client for the first time?
table of contents
. You’ve checked it out and know it’s safe.
17 Maryland Association of Realtors® Meet the Staff 22 Thank you 2011 Conference sponsors 24 Multigenerational housing is a real estate growth niche 28 top 10 benefits as a maryland association of ReALTORs® Member
ou know where they live.
s a safe place!
ntroduce them to your colleagues.**
D epartment s
o send a signal to your local police department
er you dial into your cell phone
that indicates you need help, but does not tip off the
he person who is threatening you
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M A R Y L A N D R E A L T O R ® August/September 2011
3 President’s perspective
6 MAR 2011 LEADERSHIP TEAM
30 MARYLAND REAL ESTATE COMMISSION NEWS Commercial Agency CE on the Way 31 Regulation News The Real Estate Commissions 2012 Leadership and Agenda 32 FROM THE HOTLINE Disclosure of Material Facts: A Cautionary Tale
.REALTOR.org/Safety
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34 MRIS UPDATE What’s New at MRIS 36 snippets & Industry tips 38 RESIDENTIAL SALES Housing Market Recovery May Have Begun in Earnest 42 Commercial Connection Commercial Real Estate Markets Stabilizing, Demand Growing
2011 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
Cathy A. Werner
Patricia A. Terrill
President RE/MAX American Dream 9414 Belair Road Baltimore, MD 21236-1504 410.529.7900 Fax 410.529.7906 cwerner@remax.net
President - Elect Prudential Carruthers REALTORS® 7500 Coastal Highway Ocean City, MD 21842-2937 410.524.7000 Fax 410.524.5695 pat.terrill@gmail.com
Executive Leadership Team Cathy A. Werner | President Patricia A. Terrill | President-Elect Carlton J. Boujai Jr. | Secretary Carole A. Maclure | Treasurer Steve Meszaros | Immediate Past President Mary C. Antoun | Chief Executive Officer
Editor Deborah L. Hager | debbie.hager@mdrealtor.org
Advisory Committee Ken Montville | Chair Ron Howard | Vice Chair
Advertising & Publication Design
Carlton J. Boujai Jr.
Carole A. Maclure
Secretary EXIT Realty Prosperity Group 5300 Westview Drive Suite 105 Frederick, MD 21703-8339 301.698.8700 carltonboujai@mris.com
Treasurer Long and Foster Real Estate, Inc. 4650 East West Highway Bethesda, MD 20814-5330 301.907.7600 Fax 301.907.6610 carole.maclure@longandfoster.com
Art Comp & Design Alison Cooper | Senior Designer 1921 York Road, Timonium, MD 21093 410.252.4027 | www.acd1.com
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®: ■ 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.
Steve Meszaros Immediate Past President Yerman, Witman, Gaines & Conklin Realty 1500 Whetstone Way Suite 100 Baltimore, MD 21230 410-401-3600 smeszaros@ywgcrealty.com
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M A R Y L A N D R E A L T O R ® August/September 2011
Mary C. Antoun 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® (USPS 0016-017) is published bimonthly by the Maryland Association of REALTORS®, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR ®, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Member subscriptions of $3.81 are paid with annual dues. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the Maryland Association of REALTORS®. Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request. While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2010 Maryland Association of REALTORS®, Inc.
Pe n Fe d R e a l t y i s a m e m b e r o f t h e Pe n t a g o n Fe d e r a l Cr e d i t U n i o n f a m i l y.
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Maryland Association of REALTORS®
Introducing Our 2012 President
Patricia Terrill
Pat Terrill credits her career in real estate with helping her to meet life’s challenges. Finding herself a single mother of five small children in 1977, Pat read an advertisement in the local Annapolis newspaper offering housewives the chance to earn a four digit monthly income working part-time. “I had never worked outside the home before,” she says. “On my first interview, I was hired by Mann Associates.” “Joe Minieri, who is now the branch vice president for Coldwell Banker Residential Brokerage in Annapolis, was my first boss. I was fortunate to have such a great mentor,” Pat says. Her new profession provided not only the financial support but the flexibility she needed to raise five children. Her family now includes nine grandchildren and nine greatgrandchildren. Her profession of choice has kept her in good stead for 34 years and counting. “The economy has been cyclical ever since I entered real estate,” she says, “but I’ve never regretted becoming a REALTOR®. It is the best of all possible callings.”
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M A R Y L A N D R E A L T O R ® August/September 2011
Pat now lives in Ocean Pines, where she is a property manager for
Part of that outreach, she plans, will be reaching out to new and young
Prudential Carruthers, handling resort rentals and short and long term
REALTORS®. “They arrive filled with ideas, enthusiasm and energy,”
properties in the Ocean City, Berlin and Ocean Pines areas.
she says. “I want to give them a place at the table, and help them see that it’s their table, too.” She hopes to encourage more local associations
Despite her professional and family demands, Pat has been engaged in
to start Young Professionals Networks (YPN), “because they are our
volunteer work for both the REALTOR organization and her community.
industry’s future.”
®
Her twin passions are political involvement and community service, and Pat believes that MAR’s political involvement
she has prepared for her leadership as MAR President with work in both areas. Although she served as President of the Coastal Association of REALTORS® in 2006, Pat continues to stay involved locally, serving as this year’s chair of the local Government Affairs Committee.
She has been the
National Association of REALTORS ’ ®
Federal Political Coordinator for District 1 since 2008. At MAR, Pat has served on a wide array of committees, including Grassroots/RPIC, which she chaired, Legislative, Finance and Executive, among others. She is a graduate of the MAR Leadership Academy and the first NAR Leadership Academy, experience
“I want to enlist more professionals to become involved, including serving
and its government affairs activities are the critical center of what the Association does. She believes that by reaching out to more members, MAR’s voice will be strengthened at a critical juncture.
on committees and as officers at the local and state levels. When I first became a REALTOR , ®
people were ‘retiring’ into the profession. Now they’re ‘graduating’ into it.”
”There is so much at stake now, for REALTORS® and for the public we serve. It is vital for us to increase our members’ political awareness and their advocacy, especially in our Calls For Action,” Pat stresses. “I intend to work closely with our lobbyists, local presidents, and Government Affairs Directors to send that message. With homeownership threatened as never before, it’s never been more important for our united voices to be heard.”
she has found invaluable as she views the role of MAR in serving its members.
Pat hasn’t forgotten her love for community service as well. Long an advocate for affordable housing, Pat sits on the Board of Directors of the
“I want to enlist more professionals to become involved, including serving
Partnership for Housing Foundation, a non-profit organization founded by
on committees and as officers at the local and state levels,” she says.
Maryland REALTORS® in 2001. “I intend to help the Foundation pursue
“When I first became a REALTOR®, people were ‘retiring’ into the
its very successful Maryland Makeover™ Program with two projects next
profession. Now they’re ‘graduating’ into it.” Pat views this as an
year. This is an effort that all REALTORS® can support.”
opportunity to help MAR become even more attuned to the needs of its members in their day to day practice.
Patricia Ann Terrill will be installed as MAR President at its installation ceremony Sept 13th in Ocean City. “I am honored to serve with a dynamic leadership team,” she says. “I am looking forward to leading such a progressive association.”
M A R Y L A N D R E A L T O R ® August/September 2011
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R E A LTO R
SA F E T Y R E A LTO R
R E A LTO R
MSO A FN E TT YH
SAFETY ®
Multiple choice quiz for Safety video (asterisks next to correct answers)
Safety outSide the office
r Safety video
1. When you’re showing a client around a property, how should you proceed?
® Join a)in Encourage the annual of front REALTOR Month —theSeptember, the observance client to walk in of you asSafety you move through property.** 2010.
? ? ? ? the clientcommitment into each room. Makeb)aLead year-round to safety — go online to www.REALTOR.org/Safety for tips you can use 2 4 / H R S : 7 / W K : 3 6 5 / Y R . c) Stay put and send the client on a self-guided tour. d) None of the above.
2. What is the best way to meet a new client for the first time?
a) At the property you’re showing. You’ve checked it out and know it’s safe. property, how should you
b) At their residence. This way, you know where they live. REALTOR® Safety is part of NAR’s Right Tools, Right Now initiative including over 400 products and services FREE or AT-COST
Quiz for Safety
c) At your residence. Your home is a safe place!
d) In your office, where you can introduce them to your colleagues.** youwww.REALTOR.org/Safety move through the property.**
our.
3. What is a distress code? a) An alarm button you can use to send a signal to your local police department
As a real estate practitioner, you’re faced with potentially risky situations b) A personal identification number you dial into your cell phone
every day. Meeting new clients, showing homes, and even walking to your c) A word or phrase you can say that indicates you need help, but does not tip off the
car at night be with** dangerous. It’s essential that you make safe decisions personcan you are and know how to react when confronted with trouble.
d) A word or phrase you say to the person who is threatening you
Here is a quiz to test your REALTOR® Safety Knowledge. And for more information and safety tips, visit www.REALTOR.org/Safety
nt for the first time?
ed it 10 out and know it’s safe. www.REALTOR.org/Safety M A R Y L A N D R E A L T O R ® August/September 2011
®
R ER A L TLO EA T ORR ®
®
SA F FE ET TYY SA Safety outside the office Safety inSafety the office Multiple choice for video Multiple choice quizquiz for Safety video (asterisks next to correct answers)
(asterisks toaround correct answers)how 1. When you’re showing anext client a property, 6. What should you do when you’re working in the should you proceed? office alone? a) Encourage the client to walk in front of you as you move a) Stay in the back, out of sight. through the property. b) Ensure that all outside doors and windows are locked. b) Lead the client into each room. c) Call the police and ask them to have a squad car drive by. 1. When you’re showing a client around a property, how should you 1. When you’re showing a client around a property, how should you c) Stay put and send the client on a self-guided tour. d) You should never work in the office alone. proceed? proceed? d) None of the above. a) Encourage the client to walk in front 7. of you as should you move theyou property.** What you through carry with at all times when you’re a) Encourage the client to walk in front of you as you move through the property.** 2. What is the best way to meet a new client for the first alone in the office? b) Lead the client into each room. time? a) Your cell phone b) Lead the client into each room. a) At the property you’re showing. You’ve checked it out and b) Your wallet c) Stay put and send the client on a self-guided tour. know it’s safe. c) A piece of identification c) Stay put and send the client on a self-guided tour. b) At their residence. This way, you know where they live. d) All of the above d) None of the above. c) At your residence. Your home is a safe place! d) None of the above. d) In your office, where you can introduce them to your 8. Why should you keep windows and counters clear? 2. What is the best way to meet a new client for the first time? colleagues. a) So that the office looks neat and professional b) So you can see who is arriving and leaving 2. What is the best way to meet a new client for the first time? a) At the property you’re showing. You’ve checked it out and know it’s safe. 3. What is a distress code? c) So that people outside can see who is working a) An alarm button canproperty use to send a signal to your local d) Soit that people outside see in and notice if something a) you At the you’re showing. You’ve checked outthey andlive. know it’scan safe. b) At their residence. This way, you know where police department is wrong b) At theirnumber Thisinto way, you knowis where they live. b) A personal identification youresidence. dial your cell c)residence. At your Your home a safe place! phone 9. Why should you keep the floor clear of boxes and Inthat your office, where you your colleagues.** c) At residence. Your you home is acan safeintroduce place! them c) A word or phrase youyour can d) say indicates need othertoobstacles? help, but does not tip off the person you are with a) To prevent a fire hazard d) In your office, where you can introduce them your colleagues.** d) A word or phrase you say to the person who is b) to To prevent bugs and other vermin 3. What is a distress code? threatening you c) To ensure that no one trips over them So thattoyou’ll clear exit if you need to escape a) An alarm button you can use to sendd)a signal your have localapolice department 3. What is a distress code? 4. What time during an open house should you be most b) A personal identification number you10. dial into your cell phone on guard? How you protect your office from an electrical fire? a) An alarm button you can use to send a signal to yourcan local police department a) At the beginning, when people start arriving a) Don’t overload an outlet with too many plugs. c) Apeople wordmay or phrase you can say that indicates youorneed help, does not tipcords. off the b) At the end, when one or two lingernumber in b) your Replace dispose of but frayed electrical b) A personal identification you dial into cell phone person you are with** the house c) Have a fire inspector examine your office. c) The times when are alone d)you Both a and b. but does c) you A word orAphrase you can say that toindicates need help, d) word or phrase you say the person who is threatening you not tip off the d) Around midday, when most people are busy with lunch person you are with**
outSide the office SafetySafety outSide the office
Safety at home
d) Apark word orcar phrase you say ato the person who is threatening you 5. Where should you your when showing property? 11. What is the best way to secure an outside door with glass a) In the driveway, if possible, so it is close to the exit panels? b) At the curb, so you can’t get blocked in a) With a two-inch deadbolt lock c) At least a half a block away, so no one can identify which b) With a sturdy rod laid along the bottom track of the door car is yours c) With a double lock that requires a key on both sides d) You shouldn’t drive your own car to a showing. Ride withwww.REALTOR.org/Safety d) With a chain lock the client!
www.REALTOR.org/Safety
M A R Y L A N D R E A L T O R ® August/September 2011
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RE L TL O RA EA T ORR ®
®
SA F FEETTYY SA Multiple choice quizquiz forfor Safety video Multiple choice Safety video
Social Media and Cyber Safety
(asterisks next to correct answers) next correct answers) 12. Which of the following(asterisks can protect youtofrom identity theft? a) When shopping online, check the site for a URL that Day/Time: Monday, Sept. 12th 2011 begins with “https://” 11:30am Eastern Time b) When shopping online, check the bottom of the browser Price: Free 1. When you’re showing a client around a property, how should you When you’re showing a client around a property, how should you window for1. a closed padlock symbol. proceed? Presenter: Andrew Wooten proceed? c) Create computer passwords that are at least 8 characters long. a) Encourage the client to walk in front of you as you move through the property.** a) Encourage the client to walk in front of you asToday’s you move through the property.** d) All of the above environment includes social networking,
outSide the office SafetySafety outSide the office
b) Lead the client into each room.
smart phones, e-mail and on-line everything. b) Lead the client into each room. 13. Which documents should you shred? But how safe are you when using all this technology? c) Stay put and send the client on a self-guided tour. a) Anything with your account numbers, PINs or other c) Stay put and send the client on a self-guided tour. financial information d) None of the above. In this webinar, you will: b) Private correspondence d) None of the above. c) Anything with your name and address d) Outdated files 2. What is the best way to meet a new client for the first time? • Learn how today’s criminals are using your social 2. What is the best way to meet a new client for the first time? media information for illegal activities. a) Atsothe 14. Where should you hide a key thatproperty you don’tyou’re get showing. You’ve checked it out and know it’s safe. locked out? a) At the property you’re showing. You’ve checked it out and know it’s safe. b) At their residence. This way, you know• where theythe live. Identify pitfalls and rewards of social media a) Under the doormat andlive. other cyber tools. b) At or their This way, youhome know they b) Beneath a flowerpot planter c)residence. At your residence. Your is where a safe place! c) In the mailbox c) AtYou your residence. Your home is acan safeintroduce place! them to your colleagues.** d) None of the above. should neveroffice, hide a where key outside. d) In your you • Learn what your tweets and posts could be telling
d) Inhome your have? office, where you can introduce them to the yourworld. colleagues.** 15. What should every 3. What is a distress code? a) Double locks on all outer doors. • Discover how you could be tracked through b) Working smoke and carbon monoxide detectors. a) An alarm button you can use to send a signal to your local police department 3. What is a distress code? geotags. c) A high-tech security system. d) All of the above. b) A personal number you dial phonedepartment a) An alarm button youidentification can use to send a signal to into youryour localcell police • Decrease the opportunities of criminals to hack c) A word or phrase you can say that indicates you need help, but does not tip off the b) A personal identification number you dial into your phonesmart phones and office systems and yourcell laptops, person you are with**
files. c) A wordd)orAphrase can you say say thattoindicates you need help, but does word oryou phrase the person who is threatening you not tip off the person you are with** • Identify what you need in your safety plan to d) A word or phrase you say to the person who is reduce threatening cyberyou attacks.
Answer Key
Don’t miss this opportunity to learn safety tips for protecting yourself in today’s viral world.
1. 2. 3. 4. 5.
A D C B B
6. B 7. A 8. D 9. C 10. D
11. 12. 13. 14. 15.
C D A D B
www.REALTOR.org/Safety Details, including how to register will be available soon at www.REALTOR.org/Safety
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M A R Y L A N D R E A L T O R ® August/September 2011
www.REALTOR.org/Safety
why YWGC is my home now.
Melissa Bishop, Realtor® YWGC Realty, Severn Square Office
maryland ownership I came to YWGC because I really wanted to be in an organization where I knew the owners and could see their commitment and passion to my neighborhoods, my business and me. That’s why YWGC’s Maryland ownership and hands-on, responsive management mean a lot to me. So does a robust, in-house marketing department and top-of-the-line tools and technology. All this adds up to good business. That’s why I chose YWGC. If you’re interested too, let me introduce you to Scott Lederer at 410.984.4112 or slederer@ywgcrealty.com.
ywgcrealty.com
Al Ingraham, 2006 MAR President
on your area of Expertise
Ten Steps to a Successful Settlement
Today’s real estate market is unlike any we’ve experienced in our lifetimes. We are confronted with huge inventories, far more time consuming and protracted transactions and often apathy from parties who should be motivated to make the deal work. The result is an atmosphere of uncertainty and high levels of frustration. Given all this, you may want to say “I’ll throw in the towel!” Absolutely the wrong response! Today’s market conditions mandate that we “focus on each of our areas of expertise.” In all our daily transactions, we rely on others to make each deal progress, from original client interest in home ownership, to a successful settlement on the new home. Constant recognition of the various roles we all play in this chain of events is crucial to its success. To quote an old adage: “Don’t worry about things that are out of your control.” To that I would add today’s imperative: focus on your activities. Don’t be distracted by the activities of others.
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M A R Y L A N D R E A L T O R ® August/September 2011
FULL DISCLOSURE IS PARAMOUNT Lenders are required to provide borrowers with a Good Faith Estimate of closing costs and Truth in Lending Disclosure within 72 hours of application. So it is imperative that REALTORS® involved with the transaction give lenders accurate information regarding all salient facts pertaining to the contract and details from the listing. Furthermore, should any facts regarding the contract be modified or renegotiated,
notification must be sent to the lender right away. This is important because lenders must monetarily cure any errors stemming from inaccurate disclosure. As a REALTOR®, your focus on these crucial communications is vital. If each of us hones our professional skills and establishes a network of top notch professionals to work with, we will not only survive but thrive, even in today’s market. The orderly steps along this path to success are outlined here.
First: Prior to discussing any meaningful purchase with prospective clients, advise them to get “pre-approved” by a reputable lender.
Tenth: When the commitment letter is received, in coordination with the buyers, order the title work and schedule settlement date and time acceptable to all parties. Remind your buyers that they must have home owner’s insurance policy in place for the purchased property, the effective date for this policy Ninth: must coincide with When the settlement buyers have date. received the formal loan commitment, coordinate directly with the lender to make certain any and all underwriting conditions have or will be satisfied. Eighth: Seventh: Communicate with Consistent the buyer’s lender every with your couple of days to ensure all company’s elements of the loan process policies, provide are in order and proceeding in the appraiser with accordance with current comps to the contract validate the price commitment for the property date. and meet with the appraiser at the property.
Second: Do your due diligence as to what their housing desires are and factor that Third: with what they Discuss in can truly a realistic and afford. positive manner the state of the market they’re shopping in and precisely why it’s an excellent time to buy.
Ten Steps to a Successful Settlement
Just as with a GPS system, to get an accurate complete road map to your desired destination you need a starting point and an end point. Additionally, you must navigate every turn along the way or your journey will not conclude at your desired end point. We are fortunate in Maryland to have many top notch REALTORS®, lenders, appraisers, home inspectors and title companies. Stay focused; don’t get distracted by issues out of your sphere of influence. Focus on your area of expertise and align yourself with business professionals who share your standards for performance.
Fourth: Once clients have identified the best property to buy and are ready to enter into the bid/contract process, explain the process, the Fifth: buyer’s responsibilities Advise and potential need the buyers to for expert tax Sixth: contact their lender and legal Recommend immediately after the advice. that buyers contract is fully executed. follow up with (Note: in this market a the lender to reasonable commitment date make sure they is 10 business days from contract are providing all acceptance). necessary paperwork required to render a final loan approval. Ascertain that an appraisal has been ordered and the date scheduled.
If you take a positive approach, and you’re consistent and realistic about all elements of the real estate transaction, while enlisting your “Team of Experts,” your path to success will allow you to prevail even in today’s marketplace. Despite any and all negative press you see, people are still buying and selling homes. (From January 1, 2011 through 5/31/11, there have been 20,061 home sales statewide). So keep it simple: stay focused and capture your fair share.
GOOD SELLING! M A R Y L A N D R E A L T O R ® August/September 2011
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More Support to bring you More Success Patricia Terrill 2012 President Maryland Association of REALTORS® Pat Terrill, Manager of Prudential Carruthers REALTORS® Resort Management Division, has what it takes to lead. As Property Manager, she oversees short and long term property rental and management in the Ocean City, Berlin and Ocean Pines areas. A strong educational foundation and tireless commitment to her profession have helped her become a more successful REALTOR®. Pat will be installed as the 2012 President of the Maryland Association of REALTORS®, the largest trade association in Maryland. The Prudential Carruthers Team builds leaders.
Prudential Carruthers REALTORS® remains committed to investing in programs, education and tools designed to leverage the success of our sales professionals. Even better, we ensure the right people are in place to assist our sales professionals to be successful. We believe our support equals your success! Are you ready? MARYLAND OFFICES Annapolis 410-266-0600 Bethesda 301-961-6000 Canton 443-769-1700 Crofton 410-721-3711 Elkton 410-398-2401 Federal Hill 410-547-5700 Gaithersburg 301-948-4811 Harford County 410-515-5300 Howard County 443-325-7890 Ocean City 410-524-7000 Ocean City West 410-520-2600 Ocean Pines 410-208-3500 Olney 301-260-7700 Pikesville 410-484-8322
Roland Park 410-464-5500 Salisbury 410-912-4700 Severna Park 410-647-8000 Silver Spring 301-879-2600 Towson 410-828-4700 VIRGINIA OFFICES Alexandria 703-836-1464 Fairfax/Oakton 703-691-7653 Hamilton 540-338-4171 Lake Ridge 703-497-7788 Leesburg 703-777-1250 Manassas 703-396-6000 Vienna 703-281-8500 Winchester 540-722-9300
WASHINGTON DC OFFICES Capitol Hill 202-393-1111 Uptown 202-243-4200
An independently owned and operated member of The Prudential Real Estate Affiliates, Inc.
Maryland association of realtors®
Meetthe staff Administration Mary Antoun
Chief Executive Officer Mary Antoun has been the MAR top staffer since 1993. In addition to overseeing the Association’s operations, she works closely with volunteer leadership to develop and implement policies and initiatives to promote the real estate industry and private property rights. An attorney and economist, Mary believes the Association’s primary responsibilities are representing member interests before the legislature and advocating REALTOR® professionalism with members and the public. Director Arlene Robertson and Executive Assistant Sommer Jackson are responsible for the administrative functions of the Association. They keep the organization operating smoothly, from building operations to the Association’s management functions. Arlene and Sommer staff the “governance” committees—Executive, Bylaws, Nominating, and Strategic Planning. They also support the Board of Directors and General Membership meetings as well as the Presidential Council, made up of local Board Presidents who meet to exchange information, develop ideas and share experiences. They organize the MAR Former Presidents meetings, the MAR Reception at the National Association annual convention, and other events during the year. They also oversee the prestigious Life Achievement Award. Arlene and Sommer assist members at Registration during the MAR Annual Conference. Receptionist Rebecca Baker greets and talks to more members as the first point of contact at the Association offices than any other staffer. She answers hundreds of questions every week from members and the public, referring them to the appropriate staff person or other resource. Rebecca assists with meeting logistics, mailings, and other tasks requested by other departments.
Sommer Jackson (left), Rebecca Baker (seated) & Arlene Robertson (right)
M A R Y L A N D R E A L T O R ® August/September 2011
17
2011 Meet the Staff
Government affairs Vice President Bill Castelli, MAR’s Chief Lobbyist, heads a team that includes Director of Regulatory Affairs Mark Feinroth, Director of Government Affairs Susan Mitchell, and Assistant Sheryl Bergman. Bill, an attorney and former aide to Rep. Steny Hoyer, develops and directs the Association’s legislative strategy in representing Maryland REALTORS® in the statehouse, and coordinates state efforts with NAR in representing REALTOR® interests before Maryland’s Congressional delegation. Bill also supervises MAR’s contract lobbyists and various subject matter experts that MAR occasionally retains to assist in representing REALTOR® interests.
Left to right: Patti Schmitt, Kim Dansker, Cindy Sellers, Michael Cunningham & Halle Papai
Mark, also an attorney and lobbyist, represents MAR’s interests on regulatory matters that come before various agencies with responsibilities that affect the real estate profession and private property rights. Prior to joining MAR, Mark was Assistant Secretary with the Maryland Department of Labor, Licensing and Regulation, supervising the operation of all licensing commissions, including the Real Estate Commission. Both Bill and Mark teach CE classes for local boards. In addition to her lobbying responsibilities, Susan also directs MAR’s grassroots advocacy efforts, including our calls to action, and manages MAR’s database used to customize mobilization efforts on key issues. She also works with local boards to assist in providing MAR and NAR expertise on local issues such as land use and zoning. Susan manages MAR’s Local Government Affairs Director (GAD) Program, supervising the local GADs that MAR provides to all local boards/association without full-time local lobbyists. The program is designed to strengthen REALTOR® voices in local jurisdictions. Currently, the GAD Program provides lobbying assistance to 12 local boards. Prior to joining MAR, Susan was the Government Affairs Manager/Washington Representative for Bristol-Myers Squibb pharmaceutical company in their Washington DC office, responsible for both the federal and state grassroots lobbying program & PAC, and served as their Washington representative to the industry trade association. All three lobbyists represent MAR on various industry and other coalition groups. Sheryl provides administrative support for the entire department, including helping to organize Legislative Day and other political events as well as coordinating and e-publishing Political Buzz (the RPAC E-Newsletter). Sheryl also serves as MAR’s staff photographer. The team also includes contract lobbyists Joel Rozner and Frank Boston. Government Affairs committees include Public Policy, Legislative, Grassroots and Political Affairs, and Legal Action.
elli, Sheryl
ill Cast Feinroth, B rk a M t: h g Left to ri itchell & Susan M
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M A R Y L A N D R E A L T O R ® August/September 2011
Bergman
Finance and Technology Patti Schmitt, MAR Controller, has primary responsibility for developing and tracking MAR’s annual budget, managing MAR and affiliate organizations financial operations and working with its auditors and financial advisors. She provides economic and financial information to the CEO, Board of Directors and officers, Finance Committee and staff. Patti also oversees the operations and staff of the Technology Department. Prior to joining MAR, Patti was Assistant Controller for HRi, ASO & PEO Outsourcing, serving more than 150 employers with over 1,700 employees across 17 states. Patti also successfully started and operated a contracting business for fourteen years before selling her interest to her partner. As Assistant Controller, Kim Dansker administers MAR’s accounts payable and assists with daily financial transactions. Kim also maintains financial records for RPAC. Accounting Specialist Halle Papai administers MAR’s accounts receivable and assists with daily financial transactions. Halle also maintains financial records for several affiliated organizations. Technology Coordinator Michael Cunningham worked with MAR for almost ten years as a consultant before joining the staff in 2005. Michael provides IT support and management, custom software development and programming, and website design and management for the Association, staff, and affiliate organizations. Membership Manager Cindy Sellers maintains databases for MAR and some affiliated organizations, and assists in helping staff with computer hardware and software systems.
(top) Lisa Haynes n sma & Lisa Kin
Education Lisa Kinsman, Department Director, has been an MAR staff member since 1981. She supervises activities and staffing for GRI, Leadership Academy and Mediation Oversight. The department coordinates the education programs for the Annual Conference, and oversees the dissemination of all continuing education certificates for all CE programs provided by MAR and contracted providers. Education Assistant Lisa Haynes provides all Department administrative support, and is the “point person” responsible for issuing certificates, handling replacement certificate requests for programs submitted for continuing education through MAR and any other general education question callers may have. MAR maintains an extensive educational database whereby attendee records (member and non-member) are updated for every CE or non-CE program MAR offers. This system verifies attendance and confirms classes taken to track designation courses, mandatory state licensing renewal courses and any association training required sessions.
Legal AFFAIRS Chuck Kasky, Vice President of Legal Affairs, oversees the Department’s operations, assisted by Staff Attorneys Colette Massengale and Aimee Bader. Shannon Reed is the Legal Affairs and Professional Standards Assistant. Prior to joining the Maryland Association of REALTORS®, Chuck was engaged in the private practice of law, served as Legislative Counsel to several Committees of the Maryland General Assembly, and was Deputy Chief Administrative Officer for Howard County, Maryland.
Left to right: Colette Massengale, Chuck Kasky, Shannon Reed, Kimberly Cavallaro, Don Martin & Aimee Bader
The Legal Department staffs the MAR Legal Hotline, the service REALTORS® routinely identify as one of their most valuable MAR membership benefits. Members call or submit questions via an online form, available at the Legal Services tab of the MAR website. The Department supports Maryland RPAC, the Statewide Forms Committee, the Commercial Alliance, the Real Property Operations Committee and the Bylaws Committee. Department attorneys also provide in-house legal and compliance assistance to the other Departments within MAR. As a service to member boards, associations and firms, the Legal Department visits offices and provides instructors for continuing education classes on risk reduction, agency law, real estate contracts, Code of Ethics, fair housing, legislative and legal updates and broker supervision. To assist in compliance with the NAR Professional Standards program, the department provides annual training to local Grievance and Professional Standards Committees. The attorneys draft and review proposed legislation and comments on proposed regulations, and provide advice to members about their impact. Legal Affairs also has responsibility for member services. Don Martin, Director of Board and Member Services, is MAR’s principal outreach to firms and local boards. A 17 year MAR veteran and a former practicing REALTOR®, Don spends most of his time on the road speaking at sales meetings and teaching continuing education classes. Don is the primary resource on Professional Standards issues, and staffs that MAR committee. Don oversees local board compliance with NAR requirements regarding services. Kimberly Cavallaro, Manager of Board Professional Standards Services, oversees outreach services for dispute resolution and Professional Standards. She administers the Professional Standards Services program for many local boards/ associations, offering MAR resources to provide seamless assistance to their members and the public regarding ethics cases and arbitration procedures. Kimberly also staffs the Professional Standards Instructors committee that delivers risk-reduction training to local boards, to ensure member understanding of the ethics and arbitration procedures. She manages the Dispute Resolution area of the MAR website, which addresses dispute resolution issues and alternatives.
M A R Y L A N D R E A L T O R ® August/September 2011
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2011 Meet the Staff
Communications & Public Affairs The Communications and Public Affairs Department is the public voice of MAR, charged with overseeing our communication with members and the public. The Department staffs the Annual Conference, Communications/PR, Community Action and REALTOR® Excellence (CARE), and REALTOR® of the Year committees, and manages and coordinates all aspects of the Fair Housing Poster Contest. It produces the bi-monthly Maryland REALTOR® magazine, publishes the Hotsheet, and develops brochures and pamphlets, as well as the popular Fair Housing Calendar. Communications develops non-dues affinity partnerships as a membership benefit. This year, the Communications/PR Committee and the Education Department will develop a Webinar series including topics of interest to all members, and will staff efforts to develop additional program emphasis to attract Young Professionals (YPN) and new agents. The Department oversees much of the content and enhancements to the MAR website: www.mdrealtor.org and is managing aspects of the MAR presence in the social media arena.
sa wkins, Melis ermaine Ha
t: J Left to righ ager & Debbie H
Lutz
Department Director Debbie Hager spearheads the MAR public and media relations efforts, which includes promoting Maryland REALTORS® and the real estate profession. Prior to joining MAR, Debbie was vice president of marketing for an investment banking firm, and a public relations manager for four school districts and other trade associations. Event Manager Melissa Lutz (pronounced Loots) is the key contact for the Annual Conference held in Ocean City each September. She manages a large tradeshow and oversees all of the onsite logistics. Melissa also assists other departments with event planning. Jermaine Hawkins is the Communications Assistant, supporting all department activities for its committees and events. He is also the first point of contact for the Fair Housing Poster Contest and Recognition Ceremony, held every April.
Housing Programs The Housing Programs Department, headed by Director Fern Dannis, researches and identifies available programs at state and local government housing agencies as well as communitybased, nonprofit housing organizations. The Department oversees data collection to identify financial assistance programs for homebuyers, which are featured on the MAR consumer websites www.mdhousingprograms.com and www.marylandhomeownership.com. The site has localized, useful information for both REALTORS® and consumers. The Department also manages the curriculum and processing for REALTORS® to obtain the MAR Workforce Housing Certification (WHC).
Left to right: Fern Dannis & Kara Ardison
Fern is MAR’s liaison with NAR on its various housing programs, with Freddie Mac’s CreditSmart™ program and with statewide and national housing coalitions. She staffs the Housing Affordability and the Equal Opportunity/ Cultural Diversity Committees, and has primary responsibility for MAR housing programs and housing policy development. As part of these responsibilities, Fern develops and supervises efforts to encourage Maryland REALTORS® to learn about credit literacy, housing finance programs and involvement with creative housing programs, fair housing activities and related policy initiatives in their communities. Fern has worked in the housing field for 30 years, with experience in property management, multi-family housing development, affordable housing policy, loan packaging/underwriting, nonprofit administration as well as a real estate salesperson. Housing Programs Assistant Kara Ardison assists with the staffing of the Housing Affordability Committee and Equal Opportunity/Cultural Diversity Committee. Kara provides administrative support and marketing for the department’s work, and is the first point of contact for REALTORS® regarding the Workforce Housing Certification (WHC) program, which she administers, along with the Education Department onsite. Fern and Kara both staff the Partnership for Housing Foundation (PHF), including the Maryland Home Makeover™.
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M A R Y L A N D R E A L T O R ® August/September 2011
Martin Luther King, Jr. National Memorial
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 involved with this important memorial, dedicated August 28, 2011.
To learn more visit www.DEDICATETHEDREAM.org
Proud Supporter of the Washington, D.C. Martin Luther King, Jr. National Memorial Project Foundation, Inc
Thank you
2011 Conference Sponsors Main Conference Sponsors: MetLife Home Loans MRIS Overall Conference Sponsors Carroll County Association of REALTORS® Century 21 Real Estate Frederick County Association of REALTORS® Greater Capital Area Association of REALTORS® Harford County Association of REALTORS® Ilene Kessler, REALTOR®, 2007 MAR President Pearl Insurance Pen-MAR Regional Association of REALTORS® RE/MAX Central Atlantic Tax Masters REALTOR® Business Center Coldwell Banker Residential Brokerage
Keynote Luncheon Long & Foster Real Estate NAR Directors Breakfast Anne Arundel County Association of REALTORS® Howard County Association of REALTORS® Lunch with Amy Cherow (Formerly the Rookie REALTOR Luncheon) – Open to all REALTORS® Coldwell Banker Residential Brokerage MD Dept. of Housing & Community Development (DHCD) MHREIA Mid-Shore Board of REALTORS® Refreshment Break Cecil County Board of REALTORS® Wednesday’s Refreshment Break Janice Kirkner, REALTOR® Southern MD Association of REALTORS®
Wednesday’s Exhibit Hall Brunch Prince George’s County Association of REALTORS® Southern MD Association of REALTORS® Installation Banquet Coastal Association of REALTORS® Prudential Carruthers REALTORS® Lynette Bridges-Catha, REALTOR® Carole Maclure, 2008 MAR President Golf Tournament Men’s Longest Drive – Garrett County Board of REALTORS® Women’s Closest to the Pin – Janice Kirkner, REALTOR® Tee # 1 – Martha Lessner Tee # 2 – Iona Harrison, REALTOR®, 2009 MAR President Tee # 3 – Steve Meszaros, REALTOR® , 2010 MAR President Tee # 4 – Auto Spa Tee # 5, 7, 9, 11, 18 – Capital Bank, N.A.
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M A R Y L A N D R E A L T O R ® August/September 2011
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is a Real Estate Growth Niche Fern Dannis
A 2010 report from the Pew Research Center has generated articles and speculation about future housing trends. Key findings: in 2008, an estimated 49 million Americans, 16% of the total U.S. population, lived in a family household with at least 2 adult generations, or a grandparent and at least one other generation.
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M A R Y L A N D R E A L T O R 速 August/September 2011
Matures (born prior to 1946): term coined by
Millennials (born 1981-1999): first used by
marketing researchers Yankelovich Partners, Inc.
sociologists Neil Howe & William Strauss in their book
Baby Boomers (born 1946 through 1964):
Generation Why?, Nexters, and Internet Generation.
named by Landon Jones, author of Great Expectations, a book chronicling the Boomer generation.
Generation X (born 1965 through 1980): term
originated by author Douglas Coupland in his novel, Generation X.
This 33% growth since 1980 of multigenerational households “is partly the result of demographic and cultural shift, including the rising share of immigrants in the population and the rising median age of first marriage of all adults.” The trend also reflects a period of high unemployment and rising foreclosures that spiked the number of family consolidations by 2.6 million from 2007-2008. BUILDER magazine described some typical family scenarios: Boomerang kids moving home to save money; elderly parents who need family support; young parents relying on grandparent care for their kids; and rapid growth among immigrant families for whom shared living is a cultural tradition.
“Generations.” Alternates include Generation Y,
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. http://www.gentrends.com/faq.html#DefiningtheGenerations
Consider the possibilities for multigenerational families as real estate clients:
• Homes with high bedroom and bathroom counts • Large homes that have been abandoned or
foreclosed that could be remodeled into multiple family spaces
• Detached accessory units that share lot space
with larger houses that can be used as granny
flats for elderly parents, studios for home-based businesses, or rental units for homeowners wishing to supplement their income.*
M A R Y L A N D R E A L T O R ® August/September 2011
25
Multigenerational Housing
Continued from page 25
Home Sharing refers to a living arrangement where
Of course, homesharing is not new, and is informally
person has his/her own room and the common areas
services as Craig’s List. The National Shared Housing
2 unrelated people share one home or apartment. Each such as the kitchen and living room are shared. It’s an
alternative, affordable housing option that can work for people of different ages and life situations:
• Seniors who want companionship and a greater sense of security
• Those experiencing financial difficulties due to
illness, furloughs, unexpected expenses or other reasons
• People displaced due to landlord foreclosures
available through local papers and with such online
Resource Center has 120 affiliated programs offering screening interviews, reference/background checks, referrals for potential housemates, facilitating the
Homesharing Agreement and addressing concerns. In
Maryland, St. Ambrose Homesharing Program is a pioneer
in the service. Begun 22 years ago, it serves 7,700 people in Baltimore City and County, with new efforts in the City to expand the program.
Homesharing is an effective option given the limited
affordable rental housing stock. A report by the Harvard Joint Center for Housing Studies released in April 2011
found that 10.1 million households—25% of U.S. renters—
• International students
spent more than half of their income on rent and utilities
• Single mothers • Home seekers who go on to become homeowners
in 2009. Another 26% spends between 30% and 50% of their income on rent and utility costs. Housing experts generally consider 30% an affordable burden.
• Youths exiting from foster care • Veterans
Referrals for homeowners and homeseekers come from
• AmeriCorps volunteers
faith communities, advocacy groups, social services agencies, community/technical colleges and more.
• Victims of natural disasters
For more information, contact Rebecca Sheppard, Home Sharing Program Director at St. Ambrose Housing Aid Center, 410-366-6180 or
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M A R Y L A N D R E A L T O R ® August/September 2011
www.stambros.org/pages/homesharing.html. *Sources: “The Return of the Multigenerational Family Household,” Pew Research Center, March 2010 pewsocialtrends.org/2010/03/18/the-return-ofthe-multi-generational-family-household/ 10 Design Trends for 2011, BUILDER, Jenny Sullivan, December 16, 2010 www.builderonline.com/design/10-design-trends-for-2011. aspx?page=2
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. Tech Helpline—FREE unlimited calls 6. Maryland REALTOR® Magazine—in depth housing research with county by county analysis of housing statistics, up-to-theminute Real Estate Commission information and legal Q&As on hot issues affecting Maryland REALTORS® 7. Websites for Industry and Consumer Information— www.mdrealtor.org and www.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
More at
mdrealtor.org Find us on Facebook
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M A R Y L A N D R E A L T O R ® August/September 2011
The NAR and RPAC Leadership would like to thank our 2010 Major Investors from Maryland for their generous support of the REALTOR® Party.
Thank You Golden R
H Mary Antoun H William Armstrong * J. Thomas Carruthers, III H Bonnie Casper * H Adam Cockey Jr. Greater Baltimore Board of REALTORS® Greater Capital Area Association of REALTORS®
Prince George’s County Association of REALTORS® H Dale Ross Joan Ryder Jay W. Webster H Cathy A. Werner Wayne M. Wyvill
H Iona C. Harrison H John J. Harrison H Alan R. Ingraham H Ilene S. Kessler H Carole A. Maclure Maryland Association of REALTORS® H JoAnne E. Poole *
Crystal R Thomas E. Earnest H Gloria M. Farrar Harford County Association of REALTORS®
Howard County Association of REALTORS® Marc Witman William L. Yerman
Sterling R Cheryl D. Abrams Anne S. Cooke Waribo Adasi-Efuya J. Nicholas D’Ambrosia Jean R. Andrews Joanne Darling Cindy Ariosa Distinguished Sales Club of Prince Jack G. Bannister George’s County Brian Donnellan Cheryl Bare Roger N. Fairbourn Barbara Baumler John A. Ford Timothy J. Blanchfield H Carlton J. Boujai Jr. Frederick County Association of REALTORS® Alease R. Bowles J. Russell Boyce Elizabeth Gray Melvina Brown Jan W. Hayden H Richard Brown Karol A. Hess Desiree A. Callender Thomas H. Hough Boyd Campbell Howard County Million Dollar Club Carroll County Association Nancy C. Hubble of REALTORS® Harold H. Huggins Judith Caton Claude H. Humbert Michael F. Cerrito Mary Lou L. Kaestner David Charron Alexander K. Karavasilis Candace A. Claster Bob Kimball H Janice R. Kirkner Coastal Association of REALTORS® John A. Coller Joseph Landers
H NAR President’s Circle Member
Alana W. Lasover John L. Lesniewski Charles P. Llewellyn Stephen C. Mackintosh Shirley L Matlock Michael McGreevy David W. McIlvaine H Stephen F. Meszaros Jill Pogach Michaels Barbara F Miles H Kenneth R. Montville Michael Moran Judy C. Morris Ann M. Moxley H Shelly Murray Creighton E. Northrop Rebecca Perlow Audrey Primozic Susan H. Pruden Fred B. Pumphrey Thomas D. Quattlebaum Stephanie Rall Rick M. Rall Jr.
NAR RPAC Hall of Fame Members are in gold. * First Year Golden R Contributors
Real Estate Million Dollar Association of Baltimore Richard Rhodes Marilyn Rhodovi Ashley Richardson P. Joy Siegel Bob Simon Nancy R. Simpers Kenneth W. Smallwood Patricia B. Smallwood Patricia A. Terrill Jeanne L. Turnock Georgiana S. Tyler Patrick Ulrich Meredith Weisel Women’s Council of REALTORS® Baltimore Women’s Council of REALTORS® Prince George’s County Noel T. Wood Holly Worthington Michael Yerman
RPAC Major Investors as of 10/31/2010
Maryland Real Estate Commission News Katherine Connelly
Commercial Agency CE
on the Way
The Maryland Real Estate Commission is pleased to announce that a
The new commercial agency curriculum covers several topics, including:
Continuing Education (CE) class covering agency requirements in
the definition of an agency relationship; how such a relationship is created
commercial real estate transactions will be available in the coming
and terminated; and the duties owed by an agent. Common law recognizes
months. As all licensees should understand, the provisions in the
sub-agency, so the new commercial agency class covers subjects such as
Maryland Real Estate Brokers Act requiring agents to disclose whom they
how sub-agency relationships are created, with whom a real estate agent
represent, establishing buyer agency and restricting dual agency apply only
typically enters into sub-agency and the duties owed by a sub-agent.
to transactions involving four or fewer single family units and unimproved real estate zoned for residential use. An extensive body of case law, also
From the point of view of the Maryland Real Estate Commission, the most
known as common law, pertains to all agency relationships, including
important issue addressed in the commercial agency class is dual agency.
those that arise in the real estate industry.
Under the common law, dual agency is permitted in a commercial transaction if it is disclosed and consented to by the parties. The
Legislation passed in 2010 requires all real estate licensees to take a three
commercial agency curriculum also contains a section on undisclosed dual
hour continuing education course on the principles of agency and agency
agency and the types of remedies and damages a real estate broker’s client
disclosure at least once every four years. The new commercial agency
can claim in a law suit.
course is designed for those licensees who are primarily or exclusively commercial practitioners. (Commercial real estate agents may also take
We at the Real Estate Commission look forward to offering the commercial
the residential agency class and count those continuing education hours
agency continuing education course and hope that you will offer us your
as an elective towards the overall 15 hours of C.E. required for license
feedback at mrec@dllr.state.md.us.
renewal.) The Real Estate Commission encourages those licensees who are primarily or exclusively commercial practitioners to take the Commercial version of the agency class. Those licensees who primarily provide residential real estate brokerage should take the residential agency class. If they choose to take the commercial version of the class, they may count it as an elective.
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M A R Y L A N D R E A L T O R ÂŽ August/September 2011
Katherine Connelly is the Executive Director of the Maryland Real Estate Commission For more information, visit http://www.dllr.state.md.us/license/mrec
Regulation News Mark Feinroth, Esquire
The Real Estate Commissions
2012 Leadership and Agenda Every June the Maryland Real Estate Commission chooses Commissioners to serve as Chair and Vice Chair for the new fiscal year beginning July 1. Anne Cooke was Commission Chair for the past year and J. Nicholas (Nick) D’Ambrosia was the Vice Chair. Both Commissioners Cooke and D’Ambrosia are licensed real estate professionals and distinguished Maryland REALTORS®. For the coming year, Ms. Cooke and Mr. D’Ambrosia will exchange titles. Mr. D’Ambrosia will serve as Chair and Ms. Cooke will be Vice Chair.
the fact that while some real estate licensees provide clients with property management services, some property managers are not real estate licensees. Consumers served by licensees receive the benefit of a complaint and regulatory system to protect them, while those served by unlicensed property managers have no place to file a complaint beyond the property manager’s employer. This discrepancy in consumer protection has motivated the Commission to consider regulating all property managers who provide real estate brokerage services.
One other major action is taken by the Commission every summer. All state agencies are required to seek the Governor’s support for proposals that will be considered by the Maryland General Assembly. While the legislature meets every year from mid January through early April, the Governor’s office typically sets a deadline in early September for agencies to submit requests for legislation. To meet the deadline, state agencies must start the research and drafting process in the early summer, when Commission staff is directed to draft proposals for specific bills.
The concept of increasing the maximum guaranty fund payout a consumer may receive originated in the 2010 Sunset Review Evaluation of the State Real Estate Commission. Every ten years, Maryland state government agencies are reviewed by the General Assembly. Legislative staff prepares a report with recommendations for improvements in the agency. The 2010 report noted that the Commission rarely awards the $25,000 maximum amount from the Guaranty Fund allowed by law and observed that some types of damages are excluded by the law. The $25,000 cap on claims was added to the law in 1984 and has not been increased since. The Real Estate Commission intends to pursue legislation to increase the cap to $50,000 for those rare cases when a consumer can prove damages above the $25,000 limitation.
This year, the Real Estate Commission has directed staff to prepare legislative proposals on three topics for potential action during the 2012 General Assembly Session. The first is a request for authority to require continuing education (CE) providers to digitally transmit the records of licensees who have obtained CE credit, thereby eliminating the need to issue a paper certificate. The Commission will have a computer based system to receive and monitor CE data this year. If the requested legislation is approved and passed, in coming years there will be no need to randomly audit CE compliance.
Please feel free to contact me if you have any questions or comments regarding the Real Estate Commission’s 2012 legislative agenda or other activities. I can be reached at mark.feinroth@mdrealtor.org. Mark Feinroth, Esquire, Director of Legal and Regulatory Affairs Maryland Association of REALTORS®
The two other proposals on the Commission’s 2012 wish list are a requirement to license property managers and an increase in the maximum guaranty fund payout for consumers harmed by the conduct of a licensee. For the last several months, The Commission has discussed
M A R Y L A N D R E A L T O R ® August/September 2011
31
From the Hotline Charles A. Kasky, Esquire
Disclosure of Material Facts:
A Cautionary Tale
A Kentucky court recently considered whether a brokerage had a duty to
prior flooding on the property, but attributed the water damage to a faulty
disclose a known material fact about the property’s flooding history. In
sump pump.
2005, Buyers hired the Brokerage (“Firm”) to help them locate a home. The home was originally built in 1988 and had a history of flooding. The
The Buyers purchased the property, moved in and soon learned that the
original owners had experienced three floods that damaged the property.
property had an extensive flooding history which they alleged was not
They listed the home for sale with the Firm in 1995 and disclosed the
disclosed to them. The Buyers brought a lawsuit against the Agent, the
flooding. The property was sold again in 1999 and 2001, with both of those
Broker and the Sellers. The Sellers settled with the Buyers, and the trial
transactions involving salespeople from the Brokerage, who gave flooding
court dismissed the allegations against the Firm and Agent. The Buyers
disclosures. Two different owners purchased the property in 2003 and
also filed a complaint with the state’s real estate commission against the
2004, and both experienced flooding on the property.
Firm’s principal broker and the Agent, but the commission dismissed the complaint.
In 2004, the current owners, (“Sellers”) listed the property for sale with a salesperson associated with the Firm. The Sellers completed a property
The Kentucky Court of Appeals reversed the trial court and sent the case
condition disclosure stating that the property had water damage from a
back to the lower court for further proceedings. The court considered two
failed sump pump, but failed to mention the prior flooding on the property.
fraud allegations: fraudulent misrepresentation and fraudulent omission.
After the first listing agreement expired, the Sellers retained another
The key issue for both causes of action was whether the flooding on the
salesperson associated with the Firm (“Agent”), who had not represented
property was a material fact known by the Agent and/or the Firm that they
any of the previous sellers. Again, the Sellers did not disclose the
had a duty to disclose.
FREE Legal Hotline 32
1-800-888-1272 • Monday, Wednesday and Friday • 10am – Noon and 2 pm – 4 pm www.mdrealtor.org • Complete an Online Form available in the Legal Hotline tab
M A R Y L A N D R E A L T O R ® August/September 2011
Kentucky courts have generally applied the doctrine of caveat emptor in
IMPLICATIONS FOR MD LICENSEES
real estate transactions, where there is no liability if there is no direct
The implications for Maryland licensees are significant. Under Maryland
misrepresentation by the seller and the buyer has a chance to inspect
law, a real estate licensee must disclose to any party a material fact the
the property prior to purchase, but there is an exception to that doctrine
licensee knows or should know. A material fact is anything that affects
for fraud.
the value of a property or that a buyer would consider important when making a decision regarding the property. The duty applies whether the
The court ruled that Kentucky licensees have a duty to disclose known
consumer is a client or non-client. It also applies whether or not the seller
material facts to buyers which are not disclosed by the sellers, and sent
discloses the fact, but it’s obviously most important when the seller fails
the case back to the lower court. The Firm argued that there was no duty
to disclose the fact to the buyer. It is quite clear that under Maryland
to make disclosures to someone who was not a brokerage client, but the
law a licensee could be held responsible for a failure to disclose this
court found that the state’s license law contained no such limitation. The
condition.
court also stated that licensees are not liable for a seller’s fraud, but have a duty to disclose material facts if they know the seller is not accurately disclosing all material facts. Thus, the court sent the case back to the trial
Charles A. Kasky, Esquire, Vice President of Legal Affairs Maryland Association of REALTORS®
court for further proceedings to determine whether the Firm or Agent had actual knowledge of the property’s history of flooding.
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M A R Y L A N D R E A L T O R ® August/September 2011
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M A R Y L A N D R E A L T O R ® August/September 2011
For more information, go to www.mris.com
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The fact is, converting to natural gas doesn’t make sense from a financial standpoint. To learn why, go to www.md.smartheatingchoices.com. Here, you’ll be able to find out the true cost of converting, and the actual costs of different heating fuels. You can also learn why the Consumer Energy Council of America (CECA) says that “switching fuels is an expensive gamble—and not one that CECA recommends.”
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Snippets
‘Tech Tip Tuesday’ is for any day REALTOR® readers, I’ve hit the jackpot of all resource
• Planning to travel and don’t know where to stay? Visit www.airbnb.com and rent a private home or mother-in-law apartment in some of the most exotic places in the world.
sites. It’s called www.TechTipTuesday.com. Every Tuesday, Jeff Clark spends about four minutes talking about fantastic sites on topics ranging from music to travel to saving important files to every device you have.
• Five Bucks doesn’t get you much any more, but here’s a website www.fiverr.com where you I could have spent all day listening to his quick tutorials can, for example, find someone to plan of fascinating ideas and sites to make our lives what to do for a day in Chicago; fun and more productive. And most are create two professional web free. He is not paid for the promotion of banner ads for $5; or create a custom Facebook photo sites; he gets his leads from people string for your profile for like you and me. $5. Someone will even make you a friendship Monday-Friday • 9AM- 6PM bracelet for $5, or how • Expand your music gallery. about a pair of earrings of On www.spotify.com one can Marilyn Monroe’s likeness on download a-n-y song to any device on guitar picks. Amazing! “demand” – you can own every song in the world. There is a free version and two that charge a nominal fee. Check it out.
THESE ARE EDITOR PICKS If you have a “ridiculously useful website” to share with fellow REALTORS®, email: debbie.hager@mdrealtor.org
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M A R Y L A N D R E A L T O R ® August/September 2011
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Residential Sales Anirban Basu
Housing Market Recovery
May Have Begun in Earnest Weakness Lingers into May and June, but Forward Looking Data Point to Upturn
Because of the impact of last year’s tax credits, year-over-year comparisons
mid-March and has yet to fully regain its momentum. Moreover,
remain challenging. Tax credits increased sales volume last year, making
Maryland’s economy has slowed with gut-wrenching force, and according
current sales volume appear lackluster by comparison. Moreover, the tax
to the most recent data available from the Bureau of Labor Statistics,
credits, disproportionately used by first-time buyers, skewed the
between May 2010 and May 2011, no state lost a higher proportion of its
composition of housing purchased, which affects the validity of median
employment than the Free State.
and average price comparisons. That helps explain why year-over-year unit sales declined nearly 20 One had to be under contract by April 30th of last year to qualify for the
percent between May 2010 and May 2011 in Maryland. Of Maryland’s 24
most recent round of federal housing tax credits, but settlements could
jurisdictions, 20 registered year-over-year sales declines. Those
take place thereafter. Legislation enacted in July 2010 extended the
jurisdictions that experienced an increase in unit sales over this period are
closing deadline from June 30 to Sept. 30, 2010 for eligible homebuyers,
not primarily oriented around first-time buyers, which render year-ago
so we still must wait before year-over-year comparisons become easier
sales levels easier to attain. This group includes Garrett County (18%),
to interpret.
Caroline County (17%), Talbot County (11%) and Worcester County (6%). The increase in sales in these counties suggests that the market for second
38
For now, most available data indicate that the housing market’s progress
homes is beginning to recover. This also comes as little surprise, as
has been lackluster. This is not surprising for a number of reasons,
second home buyers typically do not face the challenge of having to sell a
including the fact that the broader economy slowed sharply beginning in
home, and U.S. financial markets have rebounded significantly from their
M A R Y L A N D R E A L T O R ® August/September 2011
March 2009 cyclical lows. This has produced wealth (albeit with
George’s County (-19%). These jurisdictions among others continue to
accompanying financial market volatility) that is available for down
wrestle with large volumes of distressed sales, which have the effect of
payments on second homes.
reducing sales price levels as these units are sold at often large discounts.
In June, unit sales declined 17 percent on a year-over-year basis. Twenty
Looking Ahead
jurisdictions registering posted drops in unit sales. Only two experienced
Despite this sea of negativity, there are signs of progress. Pending sales
increased sales volumes over this period: Allegany County (9%) and
were up significantly in June on a year-over-year basis, an increase
Worcester County (8%). One jurisdiction, Somerset County, registered no
approaching 35 percent. However, it is likely that June 2010 pending sales
change in sales volume over this period.
were lower than they would have been due to the unavailability of tax credits by then. Since one needed to be under contract by April 30th of
Average sales price declined 4.4 percent in June on a year-over-year basis
last year, sales that would otherwise have transpired last summer were
after falling 2.4 percent in May. However, average sales price increased in
likely pulled forward into spring, which artificially inflates the year-over-
June 2011 relative to the prior month. Average sales prices were approximately $16,500 higher in June compared with May.
Median sales price was off 5.8 percent in June relative to year ago levels. (The corresponding figure for May was -5.4 percent.) Between June 2010 and June 2011, 18 jurisdictions registered a decline in median sales price. One could argue that the loss in sales value is understated, because the over-representation of first-time homebuyers a year ago likely placed downward
Welcome home to the country.
pressure on sales prices a year ago.
A number of jurisdictions have experienced particularly sharp declines in median sales prices over the past year, including Baltimore City (-32%), Allegany County (-26%) and Prince
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M A R Y L A N D R E A L T O R ® August/September 2011
39
Residential Sales
Continued from page 39
year comparison. That said, this should be considered a sign of
However, for the market to continue to heal, the broader economic recovery
progress, particularly because 23 of Maryland’s 24 jurisdictions
must continue. Job growth nationally and in Maryland has softened recently,
experienced an increase in pending sales in June relative to last June.
likely in response to a host of factors ranging from high energy and food prices to the crisis in Japan and concern regarding the federal debt ceiling.
Moreover, the active inventory of unsold homes has fallen from 40,641 in June 2010 to 37,592 one year later. Months of available inventory,
Should the economy fail to recover the momentum it enjoyed late in 2010
which stood at 8 months in May, dipped below 7 months in June. This
and earlier this year, the housing market’s ultimate improvement will be
is a sign of emerging equilibrium, which will ultimately translate into
further delayed. Though mortgage rates remain low, which represents
stable prices. Once that occurs, the urgency among prospective buyers
an important source of support for the housing market, lending
should build, which will translate into greater momentum than we
standards remain highly disciplined and that is unlikely to change in the
presently observe.
near-term.
Anirban Basu, Sage Policy Group, Inc.
GRI – The Next Level
Here’s what you can expect from attending GRI –
■ networking and referral opportunities
■ increased knowledge on a wide array of topics and skill enhancements
■ confidence building through in-depth knowledge, skills training and better understanding of industry practices ■ earn a national designation which has proven greater income potential ■ receive continuing education credits, and
■ earn credits toward your broker/associates broker’s license.
Why wait? For class schedules and program details, visit www.mdrealtor.org. Click the Education tab and scroll to REALTOR® Institute (GRI), GRI Overview. 40
M A R Y L A N D R E A L T O R ® August/September 2011
May 2011 vs. 2010 Units Average Price County 2011 Allegany 29
June 2011 vs. 2010 Units Average Price
2010 Change
County 2011
48 -39.60% $83,715 $117,034 -28.50%
Allegany 38
2010 Change
2011
2010 Change 35
2011
2010 Change
8.6% $107,270 $111,817 -4.1%
Anne Arundel 450 528 -14.80% 333,259 339,298 -1.80%
Anne Arundel 539 599 -10.0% 341,165 375,425 -9.1%
Baltimore City 473 579 -18.30% 134,382 163,956 -18.00%
Baltimore City 471 648 -27.3% 151,391 167,750 -9.8%
Baltimore County 596 746 -20.10% 240,520 251,075 -4.20%
Baltimore County 635 744 -14.7% 254,912 290,127 -12.1%
Calvert 72 106 -32.10% 287,609 339,134 -15.20%
Calvert 101 113 -10.6% 310,694 302,286 2.8%
Caroline 21 18 16.70% 139,509 188,378 -25.90%
Caroline 29 35 -17.1% 149,869 181,729 -17.5%
Carroll 114 146 -21.90% 292,254 275,990 5.90%
Carroll 153 162 -5.6% 304,598 300,543 1.3%
Cecil 77 96 -19.80% 211,733 208,063 1.80%
Cecil 74 96 -22.9% 201,074 247,051 -18.6%
Charles 132 158 -16.50% 219,415 265,009 -17.20%
Charles 151 168 -10.1% 242,261 269,027 -9.9%
Dorchester 26 32 -18.80% 251,562 288,817 -12.90%
Dorchester 24 28 -14.3% 383,375 223,827 71.3%
Frederick 235 293 -19.80% 244,254 262,653 -7.00%
Frederick 258 283 -8.8% 247,238 273,966 -9.8%
Garrett 26 22 18.20% 225,937 378,309 -40.30%
Garrett 25 32 -21.9% 295,000 259,500 13.7%
Harford 233 288 -19.10% 250,409 264,162 -5.20%
Harford 258 298 -13.4% 247,970 296,767 -16.4%
Howard 218 319 -31.70% 404,522 393,107 2.90%
Howard 312 353 -11.6% 415,663 429,215 -3.2%
Kent 10 14 -28.60% 269,900 308,286 -12.50%
Kent 16 17 -5.9% 238,400 329,618 -27.7%
Montgomery 884 1,139 -22.40% 467,285 421,129 11.00%
Montgomery 1,042 1,327 -21.5% 489,432 466,864 4.8%
Prince George’s 738 863 -14.50% 172,594 209,740 17.70%
Prince George’s 783 984 -20.4% 187,381 203,619 -8.0%
Queen Anne’s 32 41 -22.00% 422,931 323,790 30.60%
Queen Anne’s 43 63 -31.7% 333,829 362,512 -7.9%
Somerset 5 18 -72.20% 126,400 154,400 -18.10%
Somerset 16 16
St. Mary’s 86 119 -27.70% 279,743 308,490 -9.30%
St. Mary’s 99 118 -16.1% 264,741 288,019 -8.1%
Talbot 41 37 10.80% 425,862 391,508 8.80%
Talbot 50 59 -15.3% 357,106 479,615 -25.5%
Washington 101 143 -29.40% 154,823 189,595 -18.30%
Washington 134 156 -14.1% 152,279 175,104 -13.0%
Wicomico 61 88 -30.70% 162,286 159,559 1.70%
Wicomico 60 90 -33.3% 148,081 157,930 -6.2%
Worcester 145 137
Worcester 161 149
5.80% 316,776 283,408 11.80%
Total 4,805 5,978 -19.60% $280,579 $287,169 -2.30% Figures reflect resales and new properties. Residential resales are reported by MRIS ® and local boards MLS systems.
0.0% 139,700 105,750 32.1%
8.1% 288,051 295,818 -2.6%
Total 5,472 6,573 -16.8% $297,112 $310,579 -4.3% Figures reflect resales and new properties. Residential resales are reported by MRIS ® and local boards MLS systems.
M A R Y L A N D R E A L T O R ® August/September 2011
41
Commercial Connection Aimee M. Bader, Esquire
Commercial Real Estate Markets Stabilizing,
Demand Growing
National Association of REALTORS® (“NAR”) research suggests that nationwide, the commercial real estate market continues to move closer toward recovery. This follows reports from REALTORS® observing more activity in the commercial market during the second half of 2010. Occupancy rates for office and industrial properties are increasing in most major cities across the U.S., and the apartment sector remains strong, with a solid net absorption and rents expected to increase four percent nationally in 2011 and five percent in 2012. Metro areas may even see double-digit rent increases. Affordable prices are proving an attractive incentive for commercial buyers, translating into increased sales. Unfortunately, tightened lending standards continue to pose a challenge, as national banks are wary of lending. NAR economists believe investment funds through private equity and real estate investment trusts will play a bigger role as the commercial market recovers. Locally, Baltimore Metro area 2011 second quarter vacancy rates are 14.5 percent for offices, 15.9 percent for industrial, 10.0 percent for retail, and 4.2 percent for multifamily properties. These rates track national averages fairly closely, at least in some categories. National second quarter office vacancy rate was 16.3 percent; industrial was 13.9 percent; retail was 13.1 percent and multifamily was 5.8 percent. From the second quarter of this year to the second quarter of 2012, NAR forecasts a decline in vacancy rates of 1.0 percentage point in the office sector, 0.9 percentage point in industrial real estate, 0.5 percentage point in the retail sector and 1.1 percentage points in the multifamily rental market.
42
M A R Y L A N D R E A L T O R ® August/September 2011
Lawrence Yun, NAR chief economist, notes that job creation will be the biggest factor moving forward. “Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year,” he said. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising.” In an NAR commercial lending survey, 65 percent of REALTORS® report lending conditions have tightened in 2011, and six out of 10 respondents failed to complete a transaction this year due to financing problems. Regional banks provide the majority of commercial loans, followed by private investors. National banks are a distant third. “Just as in the residential sector, lending problems are the biggest issue impacting commercial real estate,” Yun noted. For more detailed information about Commercial Real Estate Research and Economic Outlooks Reports, go to www.realtor.org/research/ research/reportscommercial. Next release: The Commercial Real Estate Outlook for the 3rd quarter of 2011 will be released on August 25, 2011, 10am ET. For an Overview of our extensive NAR Commercial Benefits for Members, go to www.realtor/org; click on “REALTORS® & Business Specialties”; click on “Commercial;” and under “Member Toolbox” click on “Your Commercial Benefits.”
Aimee M. Bader, Esquire, Staff Attorney of Legal Affairs Maryland Association of REALTORS®
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