August/September 2012 by Jermaine Hawkins

VOLUME XLVI Number 5

The Maryland Association of REaltors速

www.mdrealtor.org

The Voice for Real Estate in Maryland 速

Put Your

Best

Forward

p 34

Consumer Website: WWW.MARYLANDHOMEOWNERSHIP.COM

REALTOR速 Safety p19 Meet the Staff p 12

AUGUST/SEPTEMBER 2012

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President’s Perspective Patricia Terrill

REALTOR® Dedication Soars

in Challenging Market What an exciting and challenging year! It’s been an extraordinary

To the staff and AEs at MAR and our local associations: thank you for

experience, serving as your 2012 President. I’ve learned that we come

your strength and focus to help us do our jobs even better.

together when the cause demands it, and REALTORS® all over Maryland will unite to protect our industry and our public.

And to our Leadership Team, you are mentors, forward thinkers, and thoughtful advisors for our association and each other. I thank you for

A year ago, I asked you to join me in fighting legislative efforts that

making this a wonderfully productive year.

threaten to hurt our market, by making your voice heard in Annapolis and Washington. You answered that call. We won one of our most difficult

Congratulations to incoming President Carlton Boujai and the 2013

legislative issues by defeating a proposal to reduce the Mortgage Interest

Leadership Team. I know they can count on your support, just as I did.

Deduction for Maryland Homeowners. You joined us in Washington, D.C. to demonstrate our support of homeownership. You emailed, called and

I hope to see you in Ocean City, September 10-12 for the MAR Annual

rallied. In a challenging market, you supported RPAC and showed your

Conference and EXPO. Visit www.mdrealtor.org to register. It’s the best

dedication to making our industry better.

education and professional enhancement event in the region.

We know that both our state and federal legislators will continue to look at real estate for ways to increase revenue. I know we can count on all of you to help us make them understand that a sound housing market is essential to a thriving economy, and will contribute substantially to revenues, as it has in the past, when allowed to recover. As with all great organizations, our successes this year were achieved through the hard work of many of you. I extend a special thank you to local leadership and to all committee chairs and their committee members for the tremendous progress made this year.

M A R Y L A N D R E A L T O R ® August/September 2012

August / September 2012

F eature s

9 2013 MAR President Carlton Boujai Jr.

12 Realtor® safety 15 REALTORS PROPERTY RESOURCE® adds expanded tools for agents and brokers

19 Maryland association of realtors® Meet the Staff 26 Thank you 2012 conference sponsors 27 Webinar schedule 28 member benefit program update Light Your Way to More Savings

table of contents D epartment s

28 34

3 President’s perspective

6 MAR 2012 LEADERSHIP TEAM

30 regulation news Updating the Legislative Update CE Class 32 maryland real estate commission news Property Manager Legislation Postponed 34 snippets & Industry tips: Feature Put Your Best Digital Footprint Forward 37 commercial Connection Commercial Agency Law Update 38 MRIS UPDATE What’s New at MRIS-U? 40 From the hotline Agency Disclosure Forms–There is No Magic Number 43 RESIDENTIAL SALES Housing Market Appears to be in Sustained Recovery

M A R Y L A N D R E A L T O R ® August/September 2012

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2012 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

Patricia A. Terrill

Carlton J. Boujai Jr.

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

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

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

Advisory Committee Ron Howard | Co-Chair Lynette Bridges-Catha | Co-Chair Yolanda Muckle | Vice Chair

Advertising & Publication Design J. Russell Boyce

Carole A. Maclure

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

Treasurer Pioneer Realty Inc. 17304 Evangeline Avenue Olney, MD 20832-2928 301-648-1282 maclure7@aol.com

Art Comp & Design Alison Cooper | Senior Designer 1921 York Road, Timonium, MD 21093 410.252.4027, x103 | alison@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.

Cathy A. Werner Immediate Past President RE/MAX American Dream 9414 Belair Road Baltimore, MD 21236-1504 410.529.7900 Fax 410.529.7906 cwerner@remax.net

M A R Y L A N D R E A L T O R ® August/September 2012

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.

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2013 MAR President

CarltonBoujai Jr. Between his work with clients at Frederick-based Exit Realty Prosperity Group and his years of meetings in Annapolis for the Maryland Association of REALTORS®,

Carlton Boujai Jr. has already logged 180,000 miles on his ten year old car. Soon he’ll really push it into high gear. When Boujai assumes the presidency of MAR in September, he’ll be charged with navigating the 22,000-member organization at a time when the very concept of home ownership is under political siege. “Homeownership is under attack,” he says. “At the legislative level, support is being questioned as it never before has been. We have to make sure the opportunity to buy a home is there for our children and grandchildren.” Boujai is emphatic: “We have to work at the local, state and national level to do everything we can to protect the American Dream.” Maryland’s real estate industry has been buffeted by enormous economic and market shifts in the past few years, making it challenging for even the most seasoned professionals to find their footing in an environment dominated by distressed properties, reluctant lenders and wary clients.

M A R Y L A N D R E A L T O R ® August/September 2012

“W e m u s t rai s e t h e s ta ndard o f profes s ion a l i s m i n o u r f i e l d.” But Boujai, 65, remains undaunted. He plans to traverse the state to meet with all 17 local REALTOR® associations to make sure he has a firm handle on the issues most critical to members, and to address their concerns about the legislative battles that the state association has been waging. “We’ve been successful so far. We’ve beaten back a proposal to limit the state’s mortgage interest and property tax deductions. But I’m concerned this issue will rear its ugly head again,” Boujai says. He also noted lawmakers’ efforts to place “onerous burdens” on homeowners with septic systems and a proposal to tax services, including real estate, that the association has so far defeated. Al Ingraham, MAR’s 2006 president, has been a champion of Boujai’s rise through the state leadership ranks over the past 10 years, which included stints as MAR’s treasurer and secretary. “He is willing to tell people what they don’t want to hear,” says Ingraham, who works as a mortgage banker. “But he always does it with a smile. He has the kind of presence that makes people stop what they’re doing to listen to him,” says Ingraham. Boujai launched his real estate career 24 years ago after a two-decade military career. He trained to be a MedEvac helicopter pilot after graduating from A & T University in Greensboro, North Carolina in 1970 with a degree in business

administration. His first assignment was to support the troops in Darmstadt, Germany, where he spent 18 months in the pilot’s seat. He later worked as a patient administrator in military hospitals, including postings in Fort Hood, Texas, Fort Polk, Louisiana and Fort Detrick, where he retired as a major in 1990. “The military taught me discipline and to pay attention to details. I learned how to work with all kinds of people and I enjoyed it. All of that has helped in my real estate career.” One of his first home sales was to a military colleague from Fort Detrick, Dan Richardson, who remains Boujai’s close friend in Frederick. “The industry needs someone like Carlton,” Richardson says. “He’s not emotional or impulsive. He’s deliberate in his decision-making.” Boujai, who grew up in Washington, D.C. and Trenton, New Jersey, attended a Catholic seminary high school for three years, during which time he considered becoming a priest. “It set me up for a disciplined life,” he says. “But I eventually realized that the priesthood was not the life for me.” He and his wife Saundra, a social worker, have four children. In his spare time, Boujai golfs as often as

he can, relishing his seven handicap. “The sport is great for its professional camaraderie and for relaxing.” Going forward, Boujai plans to encourage more extensive member involvement with issues at the national level. “We need greater participation in RPAC and Calls for Action organized by the National Association of REALTORS®. “Right now only 25 percent of our Maryland REALTORS® respond. That is unacceptable,” he says. As important as the legislative work is, Boujai says that increasing the skill-level of real estate professionals is also a top priority. “We must raise the standard of professionalism in our field. There is so much more expertise required in handling transactions nowadays,” he notes. “More education, including designations, will show our clients that as REALTORS®, we offer a higher standard,” says Boujai, who earned his CRS and GRI designations in his first five years as a REALTOR®. Members need not fear that Boujai will lose touch with the every day challenges of practitioners, because he’ll remain one throughout his presidency. He plans to continue to take listings and work with buyers, seeking help from

“More education, including designations, will show our clients that as REALTORS®, we offer a higher standard.”

M A R Y L A N D R E A L T O R ® August/September 2012

WAITING For Your Commission?

an Exit Realty Prosperity Group colleague when he needs to. “If I don’t produce sales, I don’t make a living,” he says. Boujai sees momentum building in his Fredrick area market. Halfway through the year, he has closed twice as many transaction sides as in all of 2011. “Prices are stabilizing and most people are doing better,” he notes. “I feel strongly that any potential buyers who don’t make a purchase within the next two years will regret it. Interest rates will be going up quicker than many people expect.” He has no illusions about the multiple demands on his time during his presidency, but Boujai feels more than up to the task. “One of the many things REALTORS® do well is work together to support each other,” he says proudly. “I won’t be doing this alone. I’ll have 22,000 REALTORS® helping me, and together we will make our industry better.”

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3/6/12 2:46 PM

M A R Y L A N D R E A L T O R ® August/September 2012

SEPTEMBER

The Real Estate Safety Council encourages every office to implement a formal safety program. Each company should implement procedures and education programs that include everyone in the office.

t a h w s u l l Survivors te ferently if f i d o d d l u o . they w e c n a h c e h t n e v i g e r e w y the 12

M A R Y L A N D R E A L T O R 速 August/September 2012

Three steps you can do on your own that could make a

Identify the

difference, even if

person you

your office does not have a formal safety program:

Know who you are dealing with

are working with before you join him/ her alone, in a car or a house. Copy his/ her driver’s license!

WHEN YOU HAVE NEW CLIENTS:

Always carry your cell phone, program 911 into speed dial, and don’t hesitate to call for help.

Trust your instincts.

• Meet them in the office • Verify his/her identity •G et their car make and license number • Photocopy their driver’s license • Complete the Client I.D. Form

ASK PROSPECT TO STOP BY YOUR OFFICE and complete the personal identification form before going to a property. This should be openly obtained, preferably in the presence of an associate.

M A R Y L A N D R E A L T O R ® August/September 2012

OPEN HOUSE SAFETY TIPS •D on’t advertise a listing as vacant

VERIFY THEIR IDENTITY This may entail calling references; his/her place of employment and verifying his/her current address. Information should be retained at your office; knowing that a name and address are known may discourage an assailant.

INTRODUCE THE PROSPECT TO SOMEONE IN YOUR OFFICE A would-be assailant does not like to be noticed or receive exposure knowing a person could pick him out of a police lineup.

PHOTOCOPY OR SCAN THEIR DRIVER’S LICENSE

GET THEIR CAR MAKE Legitimate clients do not AND LICENSE NUMBER It’s easy to do, and it will assist police in catching a criminal or finding you if you are abducted. If the car is stolen, your prospect will be reluctant to give you a license number.

Article excerpted from the

M A R Y L A N D R E A L T O R ® August/September 2012

mind you copying their driver’s license. We freely show our license to the clerk at the grocery store when we write a check and we show our i.d. to rent a movie. We can expect identification from our client before we show a home worth hundreds of thousands of dollars.

•E stablish escape routes from each level of the house •C all the office or a buddy hourly •K eep your keys and cell phone with you •P ark where you can get out quickly

BE GUARDED WITH YOUR PERSONAL INFORMATION •Y our marketing materials should be polished and professional. •L imit the amount of personal information you share. •U se your cell number, not your home phone. •U se your office address rather than your home address. •A void glamour shots, predators may target you.

Realtors Property Resource (RPR)

for Agents and Brokers

Realtors Property Resource recently launched its version 1.14 to REALTORS® throughout the country. This was the third major release of enhancements and expanded tools for RPR in 2012. RPR has been available to all REALTORS® in the MRIS market areas since mid-2011, so let’s take a moment and review the latest enhancements.

In its most recent release, RPR’s version 1.14 (Released June 2012), RPR implemented many improvements to the popular reports, including: 1. A New Neighborhood Report: This report summarizes the neighborhood data that you find on the Neighborhood Details page. 2. Custom Area Market Activity Report: REALTORS® have been asking for the ability to access market activity metrics from selfdefined geographic areas, and now it’s a reality. Using the RPR maps and the search tools, it’s easy to create a custom search area that will be used for the Market Activity report.

M A R Y L A N D R E A L T O R ® August/September 2012

Realtors Property Resource®

Continued from page 15

3. R efine Value detailed in Property Report: A new breakout section details the changes an agent made on the Property Details page to arrive at a Refined Value for a property. 4. L icense number on report covers: Gives you the option to enter your state license number in your Profile page, and when you generate a report for a street address or geography in that state, your license number will appear along with the rest of your contact information. 5. E ditable seller proceeds: Now prior to printing the Seller’s Report, REALTORS® using Adobe Reader can type estimates of the net proceeds, showing how much cash the Seller will receive at settlement.

RPR’s mission is to reinforce and support the core competence of REALTORS® and to insure that agents and brokers stay central to the real estate transaction in a

world of increasingly technology empowered consumers. Early in 2012, RPR began the MyRPR website in order to allow RPR users from across the country to share stories of how RPR has helped to make them successful in their real estate businesses. In April, JoAnne Poole, Branch Manager with Prudential Homesale YWGC in Annapolis, Maryland shared her experience on RPR Broker Tools Sets and reports. “Going into RPR and being able to find it all in one place is a wonderful thing.” JoAnne goes on to say, “I have found that doing research through RPR, which has the latest resource and information, has proven very successful for me.”

Cathy Werner, Broker/Owner of RE/MAX American Dream in Baltimore Maryland, is RPR’s latest MyRPR Case Study. Cathy recalls a recent experience with RPR where she faced strong competition for a new listing and decided to use RPR for the legup. She was able to incorporate information about that property with the Realtors Valuation Model (RVM) and Cathy says “it took me less than 10 minutes to do.” She then emailed the report with a note to the Seller’s thanking them for the opportunity. It wasn’t long before she heard back from

the Seller she had received an A+ for effort. Not only did she get the listing, but it sold within 11 days for $5,000 over asking price. Cathy credits RPR with her success. To see JoAnne’s and Cathy’s MyRPR videos, go to: http://myrpr.com As RPR moves to Q3 and Q4 0f 2013, there are even more tremendous tools coming to enhance the value of this NAR member benefit. RPR’s Commercial Application is in

Beta testing in multiple markets throughout the country, with an expected release later this year. RPR is also finalizing production of a suite of Appraiser Tools designed in partnership with the leadership of NAR’s Real Property Valuations Committee, which will begin Beta testing this fall. Also look for more enhancements to the Agents Tools, as well as Tools for MLSs and Associations. For more information on RPR systems, features, training opportunities and more, go to: http://blog.narrpr.com

Buying a home? There’s never been a better time to check out Rosedale Federal. We’re offering some of our lowest mortgage rates in years. And you can rest assured, your loan will stay right here, because we’ll never sell your loan to out-of-town lenders. So call or visit us today, and let us be the first to say, “Welcome home.”

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M A R Y L A N D R E A L T O R ® August/September 2012

THANK YOU 2011 Major Investors You continue to advance the REALTOR® Party GOLDEN R H Mary Antoun H Bill Armstrong Tommy Carruthers H Bonnie Casper Adam Cockey H Jonathan Coile H Iona Harrison H John Harrison H Al Ingraham H Ilene Kessler H Carole Maclure Greater Capital Area Association of Realtors® Maryland Association of Realtors® Inc H JoAnne Poole Prince George’s County Association of Realtors® Inc H Dale Ross Joan Ryder Jay Webster H Cathy Werner Wayne Wyvill

CRYSTAL R Thomas Earnest Jane Fairweather H Gloria Farrar Greater Baltimore Board of Realtors® Inc Harford County Association of Realtors® Inc Howard County Association of Realtors® H Janice Kirkner Jill Pogach Michaels Marc Witman Billy Yerman

STERLING R Cheryl Abrams Koki Waribo Adasi Cindy Ariosa

Jack Bannister Gregory Bennett Timothy Blanchfield Carlton Boujai Alease Bowles H Rus Boyce Melvina Brown H Richard Brown Desiree Callender Boyd Campbell Carroll County Association of Realtors® Inc Michael Cerrito Michael Chelst James Coley John Coller H Nick D’Ambrosia Joanne Darling H Ronald Deem Distinguished Sales, Prince George’s County Gary Ditto Brian Donnellan Melinda Estridge Roger Fairbourn Wes Foster William Fox Aaron Hargrove Jan Hayden Karol Hess Thomas Hough Nancy Hubble H Harold Huggins Bud Humbert Mary Lou Kaestner Alexander Karavasilis Bob Kimball Tim Knobloch Joseph Landers Alana Lasover John Lesniewski H Buzz Mackintosh

Shirley Matlock Brian Maury Marie McCormack David McIlvaine Sharon McKenna Leigh Lawson-Everstine Barbara Miles Million Dollar Club of Howard County H Kenneth Montville Michael Moran Judy Morris Ann Moxley H Shelly Murray Creighton Northrop Mary Ann O’Malley Joan Ostenso Susan Pruden Fred Pumphrey Thomas Quattlebaum Real Estate Million Dollar Association Leigh Reed Richard Rhodes Marilyn Rhodovi Ashley Richardson Randall Rothstein Joy Siegel Bob Simon Nancy Simpers Kenneth Smallwood Craig Strobel Patricia Terrill Kevin Turner Georgiana Tyler Patrick Ulrich Meredith Weisel Anthony Williams Tim Wood Women’s Council of Prince George’s County Michael Yerman

NATIONAL ASSOCIATION of REALTORS®

H Indicates NAR President’s Circle member.Hall of Fame members are in orange. RPAC Major Investors as of 10/26/2011

Meet Staff

Maryland association of realtors速

the

M A R Y L A N D R E A L T O R 速 August/September 2012

Admin

istrati

Chief Executive Officer Mary Antoun has been the MAR top staffer since 1993. In addition to overseeing the Association’sContinued operations, she works from page X 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.

President’s Perspective

Director Arlene Robertson and Executive Assistant Angela Leeper 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 Angela 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 Angela assist members at Registration during the MAR Annual Conference.

ons &s i t a c i un fair CommPublic Af

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.

Mary Antoun (left), Arlene Robertson, Angela Leeper (right standing), & Rebecca Baker (seated) Jermaine Hawkins, Melissa Lutz, & Debbie Hager

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. 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 and consults with the Equal Opportunity/ Cultural Diversity Committee on 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 manages non-dues affinity partnerships as a membership benefit. [The Thursday Webinar series will continue including topics of interest to all members. The 2013 Webinar

M A R Y L A N D R E A L T O R ® August/September 2012

schedule can be found on page 27.] 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, including Facebook, Twitter and YouTube Video production. Event Manager Melissa Lutz (pronounced Loots) is the key contact for the Annual Conference & EXPO 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, and oversees the coordination of the MAR industry awards given at the MAR Annual Conference.

Seated: Shannon Reed, Colette Massengale Left to Right: Don Martin, Chuck Kasky

Lega

ent

rtm Depa

MAR’s Legal Department, headed by Vice President Chuck Kasky, includes Staff Attorney Colette Massengale, Don Martin, Director of Board and Member Services, and Shannon Reed, 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. Chuck and Colette staff 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.

The service

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 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.

REALTORS® routinely identify the MAR Legal Shannon Reed also 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. Shannon 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.

Hotline as one of their most valuable MAR membership benefits.

M A R Y L A N D R E A L T O R ® August/September 2012

Economic Forecast

Continued from page 13

Educa

tion

Director Lisa Kinsman has been a 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.

Lisa Kinsman & Lisa Haynes

Housin

HOUSING PROGRAMS/ PARTNERSHIP FOR HOUSING The Housing Programs Department, headed by Director Fern Dannis, researches data about local housing markets and identifies financial assistance programs for homebuyers, which are featured on the MAR consumer websites www.mdhousingprograms.com and www.marylandhomeownership. com. The Department also manages the curriculum and processing for REALTORS® to obtain the MAR Workforce Housing Certification (WHC).

Fern Dannis & Angela Leeper

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 Angela Leeper assists with the staffing of the Housing Affordability Committee and Equal Opportunity/Cultural Diversity Committee. Angela 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 onsite, along with the Education Department. Fern and Angela both staff the Partnership for Housing Foundation (PHF), including the Maryland Home Makeover™ program.

M A R Y L A N D R E A L T O R ® August/September 2012

MAR’s Local

fairs

nt Af e m n r Gove

Government Affairs Director (GAD) Program is designed to strengthen REALTOR® voices in 12 local jurisdictions. 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.

Bill Castelli, Sheryl Bergman Susan Mitchell, & Mark Feinroth

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 12 local jurisdictions. 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 the MAR staff photographer. The team also includes contract lobbyists Joel Rozner and Frank Boston. Government Affairs committees include Public Policy, Legislative, Issues Mobilization, and Legal Action. M A R Y L A N D R E A L T O R ® August/September 2012

Economic Forecast y nolog ech ce & T

Continued from page 13

Halle Papai, Kim Dansker, Patti Schmitt, Cindy Sellers, & Michael Cunningham

Finan

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. Patti Schmitt, MAR Controller/Director of Finance & Technology, 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.

Technology Administrator/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.

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2012 Annual Conference & Expo

SPONSORS

Main Conference Sponsors MRIS Pen Fed Credit Union Platinum Sponsors Century 21 Real Estate

Overall Conference Sponsors

203K Services, Inc. Carroll County Association of REALTORS® Cecil County Board of REALTORS® Deutsche Bank Garrett County Board of REALTORS® Greater Capital Area Association of REALTORS® Harford County Association of REALTORS® Long & Foster Real Estate MHREIA Maryland Department of Housing & Community Development Mid-Shore Board of REALTORS® Pearl Insurance Southern Maryland Association of REALTORS® Steve Meszaros, REALTOR®, 2010 MAR President Women’s Council of REALTORS®

REALTOR® Business Center

Coldwell Banker Residential Brokerage

Lanyards

Embrace Home Loans

NAR Directors Breakfast

Anne Arundel County Association of REALTORS® Coastal Association of REALTORS® Howard County Association of REALTORS®

Wednesday’s Refreshment Break

Prince George’s County Association of REALTORS®

Installation Banquet

EXIT Realty Frederick County Association of REALTORS® Judith DiFilippo, 1996 MAR President Billie Landbeck, 1978 MAR President Al Ingraham, 2006 MAR President Iona Harrison, 2009 MAR President Harold Huggins, 1999 MAR President Ilene Kessler, 2007 MAR President Bill Neary, 2002 MAR President JoAnne Poole, 2005 MAR President

Golf Tournament

Bill Neary, 2001-2002 MAR President – Driving Range Frederick County Association of REALTORS® – Golf Carts

Tees

Martha Lessner, REALTOR® Pat Coan, REALTOR® Paul Maelstrom, TD Bank Janice Kirkner, REALTOR® Brett Reichhart, First Home Mortgage Pen-MAR Association of REALTORS® Women’s Council of REALTORS® Greater Baltimore Chapter

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Ed Brynes, Homesale Settlement Services Janice Kirkner, REALTOR®

A Special THANK YOU to All of Our Sponsors M A R Y L A N D R E A L T O R ® August/September 2012

FREE Webinar Thursday Series USABLE STRATEGIES that will increase your confidence and immediately help you. Join us for our FREE Webinar Series designed for REALTORS® in every stage of the profession.

Fundamentals of Agency Chuck Kasky October 25, 2012, 10 a.m. MAR’s chief legal counsel will navigate through the complexities surrounding residential agency using many examples of its daily application. No CE.

Generate New Business in the New Year Jared James December 6, 2012, 10 a.m.

Economic and Real Estate Forecast Anirban Basu November 29, 2012, 10 a.m. Stay informed about the current and future real estate market and the impact of the economy on buyers and sellers.

Taxes Chris Bird January 10, 2013, 10 a.m.

Creative ways to use social media and other tools to attract buyers and sellers.

Lots of new information about asset protection and how to better maximize your retirement plans.

Get your Google On

Short Sale Power Hour

Doug DiVitre February 21, 2013, 10 a.m.

Michael & Stacy Spickes March 7, 2013, 10 a.m.

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How to become a You Tube Agent—and turn Videos into Leads

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Greg Herder, Hobbs Herder April 25, 2013, 10 a.m. Discover the components of INTERESTING video.

Gene Rivers May 2, 2013, 10 a.m. Top producer tips to transform your database into a “lead gen” machine.

We will send a sequence of reminders to register. If you’re not receiving them and don’t want to miss these valuable FREE Webinars, let us know at info@mdrealtor.org. M A R Y L A N D R E A LT O R ®

August/September 2012

Member Benefits

Light your way to More Savings As of September 2012, Energy Plus will be updating its name to NRG Energy Plus, a reflection of its parent company NRG Energy, Inc. You will also see the NRG logo replace the Energy Plus logo on program materials. If you’re already receiving service from Energy Plus, nothing about your service will change as a result of this update. You’ll continue to earn Cash Back each month you’re a customer. This change in name will not result in any changes to your program or services. You’ll still continue to receive the same great benefits you’ve always enjoyed, such as 3%-5% Cash Back on your electricity supply charges each year, and a $25-$50 sign-up bonus. If you enroll a natural gas account, you can earn even more cash back and a $25 sign-up bonus for each natural gas account you enroll.* There are still no hidden fees, no long-term commitments and no early termination fees, so it’s worry-free. Also, the program offers a certified “Green Option” that allows you to help support 100% wind generated power.

Formally

If you are not a current Energy Plus customer, signing up is easy and seamless. Your electricity will still be delivered by your current local utility company. And you will earn a 3%-5% Cash Back rebate each year on the supply portion of your electricity bills. To learn more or to enroll, visit www.EnergyPlusRewards.com/ mdrealtor5532

*Terms and Conditions apply. See enrollment website for important disclosures.

M A R Y L A N D R E A L T O R ® August/September 2012

Regulation News Mark Feinroth, Esquire

Updating the Legislative Update

CE Class

Late in 2011, the Education Committee of the

The requirement that licensees take a three hour legislative update course

Maryland Real Estate Commission undertook

to qualify for license renewal is found in the Maryland Real Estate Brokers

a review of the legislative and legal update

Act at section 17-315. These courses are classified by the Commission as

continuing education (CE) classes offered to licensees.

Some licensees complained

“Topic A” classes for license renewal purposes. The statutory provision requires at least one three hour course that outlines relevant changes that have occurred in federal, state or local laws and regulations.” During the

informally to Commission members that the

2012 session of the Maryland General Assembly, MAR successfully

same content seemed to be taught repeatedly

sought an amendment to this portion of the statute to include “court

in classes that were approved for credit as

cases and industry trends” in the mandated legal and legislative

“updates.” Commission members directed

update classes.

staff to review the course outlines submitted by education providers for approval with an eye towards ensuring the information conveyed to licensees is current and timely.

Pursuant to its authority to interpret and apply the Real Estate Brokers Act, the Commission has adopted an application and review procedure for education providers to request CE credit for courses they intend to offer and publicize to licensees. Commission staff advised education providers by letter early this Spring that legislative and legal course approval applications may not include content that is more than three years old at the time the course outline is sent to the Commission for approval. Once the Commission approves a course outline, the provider is authorized to offer the course for CE credit for two years. The Commission explained that it has adopted this rule to ensure that the content of legislative and legal update courses will be not more than five years old when it is taught in the classroom.

M A R Y L A N D R E A L T O R ® August/September 2012

The Commission staff has advised education providers that course

appropriately included in courses advertised as a legislative or legal

outlines submitted for approval as a legislative or legal update course

update. Commissioners believe that it is more accurate and fair to offer

would be subject to review for current and outdated content. Some

review material for continuing education credit as an elective.

education providers have been asked to update their course materials and eliminate topics that were not sufficiently current.

We will continue working with the Commission to ensure that continuing education course content helps licensees provide the best possible service

In response to the Commission’s new policy of ensuring that Topic A

to consumers. If you have suggestions at to how that goal can be achieved,

courses provide timely information, MAR wrote to Commission Chair

please feel free to contact me at Mark.Feinroth@mdrealtor.org.

D’Ambrosia on April 12, 2012 asking the Commission for some clarification regarding certain content for Topic A courses. MAR’s

Mark Feinroth, Esquire, Director of Legal and Regulatory Affairs Maryland Association of REALTORS®

primary concern, which is shared by many instructors and education providers, is that the definition of “current” precludes certain review topics, such as the 2008 foreclosure legislation, from being included in a legislative or legal update course. Commissioners agreed that there are topics licensees should review periodically but these are not subjects

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M A R Y L A N D R E A L T O R ® August/September 2012

Maryland Real Estate Commission News Katherine Connelly

Property Manager Legislation

Postponed

On April 26, Real Estate Commissioner Marla Johnson convened the first

should provide for a distinct license category for property managers. The group

meeting of the Task Force on licensing residential property managers. The Task

discussed the history of the property manager licensing exemption in the

Force meeting was open to the public and later Ms. Johnson reported on the

Business Occupations and Professions Article, that includes two opinion letters

issues discussed at the May 23 regular monthly meeting of the Real Estate

written by the Maryland Attorney General, the most recent issued on January

Commission.

24, 1994.

The Commission has previously considered the need for licensing property

Another major topic taken up by the Task Force was the question of whether

managers who perform duties that fall within the statutory definition of

there is a need for a specialized provision of law for property management pre-

providing real estate brokerage services, which includes anyone who is paid to

licensing and continuing education. As the current real estate salesperson

collect rent for the use of real estate or assist in leasing real estate. Because

education model has a large focus on purchase and sale transactions, Task

some licensed real estate salespersons, associate brokers and brokers provide

Force participants considered whether there would be a need for a separate

property management services, clients of licensees have the benefit of the

course of property manager training.

consumer protections provided under Real Estate Commissionâ&#x20AC;&#x2122;s complaint and guaranty fund programs. A consumer who suffers a loss as a result of the

With all of these issues on the table, Commissioner Johnson recommended

actions of an unlicensed property manager does not have those same

postponing until at least the 2014 General Assembly session any legislation on

protections.

the subject of property manager licensing. We expect the Task Force to meet again in the next year to begin the process of drafting a proposal to license

In attendance at the Task Force meeting in April were Real Estate Commissioners

property managers. If you have questions regarding this process, please feel

Johnson, Cooke and Munoz, as well as property managers affiliated with the

free to contact me at kconnelly@dllr.state.md.us.

National Association of Residential Property Managers (NARPM), Real Estate Commission staff and a representative of the Maryland Association of REALTORSÂŽ. The Task Force participants discussed the functions that some property managers perform that overlap into real estate brokerage, such as receiving and holding security deposits, preparing lease agreements and showing properties available for rent to prospective tenants. There was also an exchange of views regarding the type of licensing that could be applied, and whether the law

M A R Y L A N D R E A L T O R ÂŽ August/September 2012

Katherine Connelly is the Executive Director of the Maryland Real Estate Commission For more information, visit http://www.dllr.state.md.us/license/mrec

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All rates and offers as of July 18, 2012 for new applications only, for a limited time, and subject to change without notice. 1 Closing cost offer is limited to $10,000 per loan. If application is withdrawn or does not close, the borrower pays all applicable fees. 2 For New York properties borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit of up to $10,000. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions also apply. 5 Rate is variable and can increase by no more than 2 percentage points every 5 years with a lifetime maximum adjustment of 5% (8.000% for this example). Since the index in the future is unknown, the First Adjusted Payments displayed are based on the current index plus the margin (fully indexed rate) as of the effective date above. 3For purchase transaction, the rate cannot be locked until a purchase agreement has been ratified.

Snippets: Feature

Put Your

Best

By Hemanshu (Hemu) Nigam

The phrase “digital footprint” might not mean much to you right now, but it should.

M A R Y L A N D R E A L T O R ® August/September 2012

Forward Digital or viral footprint refers to the mass of content on the Internet that can be linked to you and, therefore, located by anyone doing a search on you. The list of possible places for content to be visible is seemingly endless: your wedding video on YouTube, an article mentioning your car accident, spring break photos you might want to forget about…the list goes on. And, most likely, this content will be accessed at some point in your life by an outside source doing an assessment of your character.

A number of user content-based websites have become useful instruments in hiring, making decisions on school admissions, dating choices, purchasing and a number of other important arenas. In fact, CareerBuilder reports that 37% of employers are using social media searches when considering candidates. Facebook posts and Tweets, for example, can now also be used in criminal courts. Simply put, the Internet has a memory, and it never forgets. That can make anything mentioning an individual very important.

To contact the webmaster, go to: http://support.google.com/websearch/bin/ answer.py?hl=en&answer=9109 To view the Career Builder report, go to: http://msn.careerbuilder.com/Article/MSN2997-Job-Info-and-Trends-Clean-up-thatprofile-37-percent-of-companies-researchcandidates-via-social-networks/ For more on use in criminal courts, go to: www2.wjbf.com/news/2012/apr/17/ facebook-status-photos-could-be-usedagainst-you-c-ar-3625155/ For more on the Internet’s memory, go to: sspblue.com/blog/charlie-sheen-reminds-usthe-internet-has-a-memory/

To view a Forbes article on ViralLock, go to: www.forbes.com/sites/thestreet/ More sites are offering stringent 2012/05/22/successful-facebook-start-upsprivacy settings that allow people to that-go-beyond-the-game-app/2/ keep their profiles private, or to hide personal information. However useful, For more on privacy settings, go to: and important, these settings are, they support.twitter.com/articles/14016-aboutdon’t do anything to help what you might public-and-protected-accounts have already posted. With so much of our information in so many places online, can we do anything to take care of or clean up our digital footprints? There are two general areas you’ll want to look when it comes to your viral footprint: the past and the future. Out with the old: Given that it is the world’s biggest search engine, Google is a great place to start when assessing and fixing your digital footprint. Google yourself and see what comes up. Don’t like something you see? Check out this recent CNET article for instructions to remove unwanted content from Google. This can be a great tool, but remember that this only removes cached content— not live content—from Google search results. It does not remove the actual page from the web. Google also offers services and tools to track and manage reputations, including removal of objectionable content. If you find

To view the CNET article, go to: howto.cnet.com/8301-11310_3957437078-285/remove-your-social-mediafrom-google-search/?ttag=fbw

For more on Google services, go to: mashable.com/2011/06/16/google-me-onthe-web/

something on a website about you that you don’t like, directly contact the webmaster and ask for it to be removed. In with the new: Judging good content from bad isn’t always as easy as it would seem. Companies such as Reputation. com, Veribo (Veribo.com) and ViralLock (ViralLock.com) are taking new approaches to online reputations. ViralLock, for instance, performs extensive evaluations of various websites for their clients. Then, the experts at ViralLock provide recommendations and continued monitoring to ensure that a young person’s viral footprint reflects what the person wants it to and showcases their good characteristics. Here are some tips to ensure that your digital footprint is worth seeing: • Remember our simple rule of thumb: only post content that you would be ok with showing to your grandmother. • Ask before you tag: remind friends and family to be careful when tagging you in photos, or consider asking them not to tag you at all. • Follow your gut: if it seems like a bad idea to post a piece of information, it probably is. • Own your own privacy: keep your privacy settings up to date and maintain good password security for all the sites you use to ensure nothing illicit is posted using your account. So next time you post, remember that good online hygiene is essential to keeping your reputation clean and your digital footprints worth following. About the Author: Hemanshu Nigam is a former federal computer-crime prosecutor who now heads SSPBlue.com, an online security firm whose clients include Microsoft and News Corporation, among others.

M A R Y L A N D R E A L T O R ® August/September 2012

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Commerical Connection Syd Machat

Commercial Agency

Law Update

Both residential and commercial Maryland REALTORS® will find Wilkens Square v. W. C. Pinkard a fascinating case. The dispute involved $226,000 in damages for a real estate broker’s services. There were two transactional forces operating in that case: (1) a high dollar real estate fee law suit by the broker; and (2) an “undisclosed dual agency” affirmative defense argued by the principal. In the simplest terms, earning a real estate commission may be undermined by an alleged breaching of the fiduciary relationship towards a client. One of the greatest traps for real estate licensees is the potential to be involved as an undisclosed dual agent by acting for both parties in a transaction. Wilkens Square v. W.C. Pinkard turned on whether the seller of an office building was entitled to refuse to pay an agreed-upon fee to the broker who represented the seller on the grounds that the broker was a “dual agent.” The issue was whether W.C. Pinkard & Co., Inc. (t/a Colliers Pinkard) engaged in a dual agency with Wilkens Square, the seller and CMC, the buyer. In other words, does the fiduciary duty that a real estate broker owes to a principal include any obligation to disclose relationships with other principals it represents in separate but related dealings? Colliers Pinkard had an existing buyer representation agreement in place with CMC, which excluded properties listed with them and which was scheduled to expire in a month. Wilkens Square then listed its property with Colliers. CMC’s buyer’s agents brought the Wilkens Square property to the attention of CMC, but never disclosed this to Wilkens because it wasn’t in CMC’s expressed price range and, as stated, the buyer representation agreement was about to expire.

Both the buyer representation and listing agreements existed simultaneously for about a month. After the expiration of the buyer representation agreement, CMC became interested in the property and eventually purchased it. When Wilkens Square learned that the broker at one time represented the buyer, it withheld the commission, arguing that Colliers Pinkard acted as an undisclosed dual agent. The court held that the mere co-existence of the two brokerage agreements did not constitute dual agency. In this case, there was no inherent conflict of interest and the court noted that Colliers had represented the buyer in a manner that did not breach its fiduciary duty to Wilkens Square. Accordingly, the court upheld the award to Colliers Pinkard of the disputed $226,300 commission. In cases where undisclosed dual agency is found, the remedy is Commission Forfeiture. The real estate broker must have represented both the seller/landlord and the buyer/tenant at the same time in the transaction, the commission or fee-for-service is charged, and the broker has failed to disclose that fact and obtain consent of the parties to act as a dual agent. However, the “commission forfeiture” rules do not apply where a real estate broker has represented clients on both sides of the sales or lease transaction at the same time, but NOT in the same deal. N.B. This year many licensees have already completed the Maryland Real Estate Commission’s new mandatory 3-hour Agency course. There are two different classes: Agency/Residential and Agency/Commercial. Also, residential licensees may take Agency/Commercial and earn 3 elective CE credits, and vice versa. Sydney Machat is a Counselor of Real Estate®, veteran commercial broker, and CE instructor from Washington County. He is a former Chair and member of the Maryland Real Estate Commission from 1995-2008.

M A R Y L A N D R E A L T O R ® August/September 2012

Metropolitan Regional Information Systems, Inc.

What’s New at MRIS-U?

Training U Need, When U Need It Make the most of your time by learning all of the tips and tricks to Matrix, Keystone, CMA’s, stats and more. MRIS-U is your resource for virtual and instructor-led trainings, on-demand tutorials and helpful student guides. The following are some of our new and most popular classes designed to help you learn more to earn more:

MRIS 100: Computer Basics for the Real Estate Agent (New!) Get back to the basics! Based on customer feedback, we now offer a class for those customers that need a little help getting started with computer terminology, email and accessing core MRIS websites.

MRIS 101: Kick Off Your Career with MRIS Go to the head of the class with this introduction to Keystone, Matrix, compliance and other MRIS products. Whether you are new to the industry or back after some time away, this is the class for you!

MRIS 201: Maximize Your Productivity Go beyond Matrix and Keystone with MRIS 201. This class offers an overview of all the core products and services that are already included in your MRIS subscription fee.

Matrix 201: Customize Matrix to Fit Your Business Save time and work more efficiently by learning how to utilize advanced features in Matrix. Compact with short-cuts and tips, Matrix 201 often has the “WOW! I didn’t know Matrix could do that!” effect.

Matrix 301: Success with Stats Become a stats expert by gaining insights into utilizing valuable market

Too busy to attend a classroom training? MRIS-U has you covered. Choose from 12 virtual training classes or watch nearly 50 on-demand tutorials at your convenience. Tool Tip Tuesdays are also a great resource to learn tricks to make you more productive in 45 minutes or less. All webinars connect through the internet (VOIP) so you can listen through your computer speakers - no dialing in required! See for yourself why 90% of MRIS customers are very likely to recommend MRIS training to their colleagues. Visit MRIS.com/Training today to get an A+ in your MRIS education! Remember, MRIS-U is available to you at no additional fee.

statistics. This high level class goes into DOMP vs DOMM, absorption rate, trend analysis and more.

M A R Y L A N D R E A L T O R ® August/September 2012

For more information, go to www.mris.com

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® Source: Information included in this report is based on data supplied by MRIS and its member Association(s) of REALTORS, who are not responsible for its accuracy. Does not reflect all activity in the marketplace. January 1, 2011 – December 31, 2011. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate, Inc. ©2012 All Rights Reserved. Exclusive affiliate of Christie’s International Real Estate in select areas.

EOE

From the Hotline Charles A. Kasky, Esquire

Agency Disclosure Forms —

There is No Magic Number Q. There seems to be some confusion about the Understanding Whom

It appears to be common for agents and some managers who have a listing

Real Estate Agents Represent (Agency Disclosure) form. I have been told

to request a copy of the buyer’s agent disclosure form signed by the buyer.

that every file must contain 4 forms. Is there, or is there not, a specific

Sometimes the buyer’s agent requests a copy of the disclosure form signed

number of forms required for each transaction?

by the seller at the request of the listing agent. The law does not require

A. No, there is no specific, uniform number of agency disclosure forms

this, and the other agent does not have a legal obligation to provide a copy of the disclosure signed by his or her client.

for every transaction. We are aware that some instructors have taught a rule that each residential real estate transaction should or must include

Another widespread misunderstanding of the law is that a seller’s agent

four completed agency disclosure forms. We also are aware that some

must always disclose to a buyer’s agent that he or she represents the seller.

brokers have adopted internal procedures that require managers to look for

In fact, the seller’s agent need only provide the agency disclosure form to

four agency disclosure forms in each transaction. However, Maryland law

unrepresented buyers. This is consistent with the policy behind the law

does not contain a provision requiring a specific number of agency forms

that it is imperative to disclose whom you represent to a consumer,

to complete a residential real estate purchase or sale.

especially when the consumer is not represented and your client is on the other side. It’s easy to understand why this is the single most important

So it is not legally correct that four agency disclosure forms are required

aspect of the law. Consumers need to know to be careful because

for every residential real estate transaction. The law actually requires that

you represent the interests of the person the consumer may be

an agent provide the disclosure form at the first scheduled face-to-face

negotiating with.

meeting; there is no standard number of contacts an agent should expect to have when working with a particular buyer or seller.

For example, if the seller’s agent shows the listed property to an unrepresented buyer, as a customer, not as a client, the law requires the seller’s agent to present the Agency Disclosure form to the buyer and ask to have it signed, acknowledging the licensee as the seller’s agent. If the listing agent shows the property to five unrepresented buyers, five distinct

FREE Legal Hotline 40

1-800-888-1272 • Monday and Wednesday • 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 2012

forms must be in the file. (Don’t forget to give the consumer a copy of any

You may be asking whether there are a minimum number of forms each

form he or she signs.) This illustrates why there is no single, specific

transaction folder should contain. The answer is yes. Each file must

number of Agency Disclosure forms for every transaction.

contain the agency disclosure form the client signed when you disclosed to him that you were representing him. A listing agent’s file must contain

On the other hand, suppose the buyer views a property, is accompanied by

a copy of any form the agent presented to any unrepresented buyer who

an agent and the seller or listing agent is present to disable the alarm, etc.

viewed the property with the listing agent. The buyer’s agent’s file must

Under these circumstances, the duty of disclosure falls on the agent

contain the form used to disclose to the seller that the agent was the

accompanying the buyer. Historically (before 1999), the agent taking a

buyer’s agent. This is the bare minimum under the law.

buyer to see property was the seller’s agent. After the current law took effect, almost all licensees take buyers to see property as the buyer’s agent.

Maryland’s agency disclosure law is not a model of user-friendly

Therefore, it is important to provide the Agency Disclosure form to the

legislation. Nevertheless, it can be easily complied with by following a

seller (or seller’s agent) indentifying oneself as the buyer’s agent. If, in the

few simple guidelines. Imposing additional, unauthorized requirements,

course of representing a buyer, you have five scheduled face-to-face contacts

especially on agents from other companies, only makes compliance more

with five different sellers or seller’s agents, you must have five Agency

difficult. If you have additional questions, please contact the MAR Legal

Disclosure forms signed, one for each contact. This is another illustration

Department at 800-638-6425.

of why there is no uniform rule that applies to every transaction. Charles A. Kasky, Esquire, Vice President of Legal Affairs Maryland Association of REALTORS®

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Home of Unlimited Opportunity

Residential Sales Anirban Basu

Housing Market Appears to be

in Sustained Recovery Despite Braking Economy, Housing Moves Ahead

After re-accelerating late last year and during

Maryland has not been immune to the slowdown. Unemployment in the

the initial months of 2012, the pace of economic

state increased for a third consecutive month in May (6.8%) and we have

growth and job creation has slowed more

been losing jobs. Whether Maryland’s economy will continue to decelerate

recently.

In June, national employment

expanded by just 80,000 jobs according to the

is unclear. Also unclear is whether recently observed housing market momentum can persist in the face of broader macroeconomic weakness.

Bureau of Labor Statistics, representing the

There are certainly signs that it can. A recent Wall Street Journal article

third consecutive month during which national

simply proclaimed that the “housing market has turned.” Nationally,

job creation was well below 100,000 jobs.

nearly 10 percent more existing homes were sold in May than in the same

During the first three months of the year, the

month one year earlier. Builders began work on 26 percent more single-

nation’s average monthly employment gain

family homes in May 2012 than a year earlier, and the stock of unsold

was 226,000 jobs. During last year’s fourth quarter, the nation’s output expanded at a 3

newly built homes is back to 2005 levels. A recent survey of 47 forecasters found that 44 believed that the housing market has reached its bottom.

percent annualized pace, but during the first

Maryland has been participating in housing’s recent recovery, although

half of 2012, the nation’s economy expanded at

there are indications that the pace of recovery has slowed. Home sales

a less than 2 percent pace.

statewide increased 10.5 percent in May on a year-over-year basis. But in June, the year-over-year gain was just 1.7 percent. In June, 11 Maryland jurisdictions were associated with year-over-year sales gains: Garrett County (24.0%), Carroll County (20.3%), Baltimore County (16.7%), M A R Y L A N D R E A L T O R ® August/September 2012

Residential Sales

Continued from page 43

Talbot County (14.0%), Anne Arundel County (10.4%), Wicomico County

Many of the observed gains in unit sales, though certainly not all, took

(9.4%), Frederick County (7.4%), Howard County (5.8%), Queen Anne’s

place among core metropolitan area jurisdictions. This is likely a

County (4.7%), Baltimore City (1.5%) and Montgomery County (0.7%).

reflection of the influence of first-time buyers, who have been setting off

Unit sales were flat in Dorchester County on a year-over-year basis.

cascading sales dynamics. By contrast, in counties with less dense job markets and first-time buyer influence, sales growth has been less

Jurisdictions posting year-over-year sales declines in June include Kent

consistent. This may help explain in part the performance of Caroline,

County (-37.5%), Washington County (-11.9%), Charles County (-11.3%),

Somerset and Kent counties along this dimension.

Worcester County (-10.1%), Harford County (-7.4%), Prince George’s County (-7.4%), Calvert County (-5.9%), Allegany County (-5.3%), Cecil

Price dynamics remain positive in Maryland. In May, average price was

County (-4.1%), and St. Mary’s County (-3.0%). The largest declines

up 9.4 percent on an annual basis, while median price increased 11.1

occurred in Somerset and Caroline Counties, where unit sales were down

percent. All but six of Maryland’s 24 jurisdictions experienced increases

55.6 percent and 48.3 percent, respectively, relative to last year’s levels.

in average sales prices in May. Among those with the largest increases on

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M A R Y L A N D R E A L T O R ® August/September 2012

May 2012 vs. 2011 Units Average Price

a year-over-year basis was Baltimore City, where average price rose from $134,382 a year ago to $172,199 this May, an increase of 28.1 percent. This is probably a reflection of the decreasing influence of distressed sales in the marketplace, something that is apparent in other core metropolitan jurisdictions as well.

County 2012

2011 Change

Allegany 44 29

2012

2011 Change

51.7% $113,538 $83,715 35.6%

Anne Arundel 507 450 12.7% 353,631 333,259 6.1% Baltimore City 505 473

6.8% 172,199 134,382 28.1%

Baltimore County 685 596 14.9% 254,101 240,520

5.6%

Price dynamics were similar in June, with 16 jurisdictions

Calvert 90 72 25.0% 289,993 287,609 0.8%

experiencing year-over-year increases in average sales prices and 19

Caroline 19 21 -9.5% 179,084 139,509 28.4%

reporting increases in median sales prices. Statewide, average sales price was up 6.7 percent, while median sales price rose 8.5 percent. The two jurisdictions experiencing the greatest improvement in sales price were Talbot County, where average price was up 33.5 percent and median price was up 18.7 percent, and Baltimore City, where average price rose 18.6 percent and median price increased 46.2 percent.

Carroll 152 114 33.3% 299,957 292,254

2.6%

Cecil 71 77 -7.8% 208,138 211,733 -1.7% Charles 149 132 12.9% 236,695 219,415 7.9% Dorchester 29 26 11.5% 204,207 251,562 -18.8% Frederick 236 235

0.4% 266,379 244,254 9.1%

Garrett 23 26 -11.5% 312,571 225,937 38.3% Harford 208 233 -10.7% 261,360 250,409 4.4%

Certain jurisdictions continue to experience falling home prices, however, including Garrett County, where average price is down 25.2 percent from June 2011 and median price is 35.6 percent lower. Price dynamics were also negative in a number of Eastern Shore

Howard 304 218 39.4% 396,083 404,522 -2.1% Kent 20 10 100.0% 584,848 269,900 116.7% Montgomery 1,073

884 21.4% 493,791 467,285

5.7%

jurisdictions in June, including in Dorchester County (average price

Prince George’s 719 738 -2.6% 189,297 172,594 9.7%

declined 55.8%; median price up 0.1%), Kent County (average price

Queen Anne’s 59 32 84.4% 348,539 422,931 -17.6%

slipped 18.8%; median price fell 25.9%), Somerset County (average price dipped 9.4 percent; median price fell 18.9%), and Worcester County (average price slid 14.4%; median price decreased 17.2%).

Looking Ahead

Somerset 12

7 71.4% 133,603 167,429 -20.2%

St. Mary’s 93 86

8.1% 290,201 279,743

3.7%

Talbot 39 41 -4.9% 495,626 425,862 16.4% Washington 84 101 -16.8% 181,582 154,823 17.3%

Despite growing confidence among economists, there are still some

Wicomico 62 68 -8.8% 161,185 159,226

reasons to remain nervous about the housing industry. Consumer

Worcester 145 153 -5.2% 285,401 313,019 -8.8%

confidence is declining again and job growth slowed dramatically during the second quarter relative to the first, both nationally and in Maryland. The next several months should be months of

Total

5,328 4,822 10.5% $306,672 $280,300

1.2%

9.4%

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 2012

June 2012 vs. 2011 progress, however. Pending sales in Maryland were up on a yearover-year basis in both May (up 375 units) and June (up 282 units). In Anne Arundel County, pending units totaled 548 in June 2011. A year later, the corresponding figure was 686. In Howard County, pending units are up from 322 to 387 during the same period. In Baltimore County, pending units rose from 723 to 777.

Units Average Price County 2012 Allegany 36

2011 Change 38

2012

2011 Change

-5.3% $101,705 $107,270 -5.2%

Anne Arundel 595 539 10.4% 393,613 341,165 15.4% Baltimore City 478 471

1.5% 179,582 151,391 18.6%

Baltimore County 741 635 16.7% 265,878 254,912 4.3% Calvert 95 101 -5.9% 314,703 310,694 1.3%

In June 2011, Maryland’s supply of housing inventory stood at 7 months. A year later, inventory has declined to 5.1 months – a level consistent with rising home prices and greater urgency among prospective buyers. Ten of Maryland’s 24 jurisdictions are now associated with active inventories below 6 months. Certain jurisdictions do not yet appear

Caroline 15 29 -48.3% 136,100 149,869

Carroll 184 153 20.3% 310,628 304,598 2.0% Cecil 71 74 -4.1% 214,955 201,074 6.9% Charles 134 151 -11.3% 244,582 242,261 1.0%

poised for price stability, however, including Kent (39.9 months) and

Dorchester 24 24

0.0% 169,636 383,375 -55.8%

Somerset (34.0 months) counties where recent sales volume is

Frederick 277 258

7.4% 275,626 247,238 11.5%

consistent with roughly three years of available housing inventory. But for the most part, Maryland’s housing market appears to be in sustained recovery, at least for now.

Garrett 31 25 24.0% 370,309 495,235 -25.2% Harford 239 258 -7.4% 262,716 247,970 5.9% Howard 330 312

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M A R Y L A N D R E A L T O R ® August/September 2012

5.8% 428,657 415,663 3.1%

Kent 10 16 -37.5% 193,580 238,400 -18.8% Montgomery 1,049 1,042

-9.2%

0.7% 506,409 489,432 3.5%

Prince George’s 725 783 -7.4% 195,100 187,381 4.1% Queen Anne’s 45 43

4.7% 398,580 333,829 19.4%

Somerset 8 18 -55.6% 130,650 144,283 -9.4% St. Mary’s 96 99 -3.0% 290,849 264,741 9.9% Talbot 57 50 14.0% 476,664 357,106 33.5% Washington 118 134 -11.9% 190,185 152,279 24.9% Wicomico 70 64

9.4% 143,521 147,123 -2.4%

Worcester 151 168 -10.1% 245,425 286,810 -14.4% Total

5,579 5,485

1.7% $317,659 $297,813

6.7%

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

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