Flood Insurance Update: How does it impact local real estate?
May 2014
By Kim McClellan, Government Affairs Director the passage of the law as bringing much-needed stability to the marketplace, an unknown threat loomed.
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n 2012, the Biggert –Waters Flood Insurance Reform Act was passed to reauthorize the National Flood Insurance Program (NFIP) for 5 years. This was a huge victory for REALTORS® across the country since many transactions were delayed or lost entirely due to the frequent lapses in the program. While NAR heralded
As the law began to be implemented, homeowners and prospective buyers began reporting massive increases in flood insurance rates. The law recognized that the NFIP was in financial trouble after years of severe storms and massive payouts by requiring an end to subsidized rates over a period of years. However, when the law was actually being implemented, many insurance companies were requiring an annual premium equal to 20% of the replacement cost of the structure. If the
home was valued at $200,000, a homeowner seeking a flood insurance policy would be required to pay $40,000 in annual premiums. REALTORS® and homeowners quickly realized that this was a growing issue and would dramatically impact the marketability of homes and other properties within flood plains. Continued on pg 6
Searching for leaders: Nominating Committee accepting applications for 2015 Board of Directors
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he Nominating Committee chaired by 2013 President Suzanne Brady invites the membership to consider being interviewed for a spot on the election slate. Electronic voting will be available in early September and will continue through September 17 at 1 pm. A polling booth will be set up at the FAAR Expo.Questions concerning the responsibilities
of holding an office should be directed to Pat Breme(pbreme@ faarmembers.com) or Suzanne Brady (smbrady@mris.com) The Candidate Profile and the Code of Conduct forms are on www.faarmembers.com on the home page. Both need to be filled out and sent to Pat Breme (pbreme@faarmembers.com), by 5 pm on June 6.
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In This Issue 1 1 3 8 7 14 16
Flood Insurance Update Searching for Leaders President’s Forum Flood Insurance Update Continued Commercial Corner Education Update NAR Advocates for Commercial REALTORS®
20 Strategic Planning 21 REALTORS® Foundation 22 Faarmembers.com “ I rarely go there” 26 Failure to Disclose 29 Mineral Rights and Fracking 31 CAN SPAM 33 Tech Doctors
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PRESIDENT’S
FORUM W
e are in the second quarter of 2014, and feeling the benefits of real estate spring fever! While we are busy helping our clients, we need to be sure to keep up on our education. RECA continues to offer PL/CE, NAR designations and certifications, and current topics. Please visit www.FAARmembers.com and register yourself online for upcoming classes. Back in March, FAAR had a terrific RPAC event at the Bowman Distillery. This fundraiser pushed us over our financial 2014 goal! But the education continues. The impact of RPAC funds is immeasurable.
We are able to support and be at the table with lawmakers and have our voices heard. On June 5, FAAR is hosting a one-time event with 2011 NAR President Ron Phipps. Ron will be bringing RPAC's investment alive with stories at the national level. Ron is an amazing speaker and fantastic leader! Sometimes the events’ focus has strictly been on fundraising, but this time the focus is on the process and influence REALTORS® have on legislation. Don’t miss out on meeting and hearing Ron, right here in Fredericksburg!
Debbie Irwin, ABR, GRI 2014 President
future FAAR leaders with a follow on to FAAR Forward, the leadership event earlier this year with a panel of local leaders in a Q&A format. A large part of being a leader is to find and train other leaders. Our new Leadership Development Committee is taking this concept to task.
Thank you for taking your time to read this newsletter and keeping yourself plugged in to your local REALTOR® community!
To continue this awesome day Ron will engage current and
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I N S U R A N C E
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I N V E S T M E N T S
Branch Banking and Trust Company is a Member FDIC and an Equal Housing Lender. Loans are subject to credit approval. Only deposit products are FDIC insured. Branch Banking and Trust received the highest numerical score among mortgage servicers in the proprietary J.D. Power 2010-2013 Primary Mortgage Servicer StudiesSM. 2013 study based on responses from 4,669 consumers measuring 18 companies and measures the satisfaction of consumers with their current mortgage servicer. Proprietary study results are based on experiences and perceptions of consumers surveyed in April-May 2013. Your experiences may vary. Visit jdpower.com 5 © 2013, Branch Banking and Trust Company. All rights reserved.
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Flood Insurance Update:
Continued From Pg. 1
NAR quickly got involved and called on Congress to instruct FEMA, the federal agency that administers the NFIP, to correct the issue. On March 21, 2014, President Obama signed into law the Homeowner Flood Insurance Affordability Act of 2014. The Act changes the initial law to significantly mitigate the current impact of higher flood insurance rates. This includes eliminating the immediate application of full market-based rates upon the sale of a property or a new policy, limiting the annual increases for premiums to 18% for primary homes and 18-25% for second homes, directing FEMA to implement new rate tables based on the new Act, allowing policyholders to receive a refund of premiums already paid in excess of the amount that would be allowed under the new law, allowing new owners to assume a prior owner's policy at existing
rates, provide for properties to be "grandfathered" to retain their flood zone's rates even when remapped into different flood zones, and phasing-in rate increases for newly mapped properties.
NAR impressed upon FEMA the urgency to make these changes and the agency began implementing the new rules a full 8 months ahead of time. Buyers of properties requiring flood insurance will now be able to assume the seller's October 2013 rate for subsidized properties and those buyers who already paid a high premium will receive a refund for that amount. NAR has a wealth of information including a great question and answer specific to REALTORS® and what advice to give clients. Visit www.realtor.org/nationalflood-insurance-program-nfip for more information.
for making “pre-approved” mean something. PNC Mortgage
An in-depth pre-approval process. A more predictable outcome. The PNC pre-approval is underwritten by a PNC mortgage professional. We walk your client through the entire application process. We perform a full credit review and, if approved, the result is a true commitment to lend. From the start. See what makes us different at pncmortgage.com/agentalliance Amy White Mortgage Loan Officer NMLS# 826656 540-834-8340 awhite@pncmortgage.com www.pncmortgage.com/amyvwhite
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River photos courtesy of Rusty Cowper BB& T Mortgage pg. 1 & 8
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to property underwriting and appraisal. Borrower must satisfy pre-approval ◊ Subject conditions outlined in commitment letter. Loan amount subject to property appraisal. PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). PNC Mortgage is a division of PNC Bank, National Association, a subsidiary of PNC. All loans are provided by PNC Bank, National Association. This information is provided for business and professional uses only and is not to be provided to a consumer or the public. This information is provided to assist real estate professionals and is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. Programs, interest rates, and fees are subject to change without notice. © 2014 The PNC Financial Services Group, Inc. All rights reserved. Member FDIC MORT PDF 0912-073-115208
Education Update
COMMERCIAL CORNER
D
id you know that NAR provides resources for Commercial REALTORS®?
Commercial Connections NAR’s free quarterly commercial publication brings you the most recent news, research, public policy updates and insights from industry experts. Available in print and online. realtor.org/ Commercial The Source Blog Stay on top of industry topics and trends and voice your comments on NAR’s commercial blog, The Source. bit.ly/TheSourceBlog Issues & Actions A summary whitepaper focused on NAR’s advocacy efforts on regulations and legislation affecting commercial real estate property. realtor.org/Commercial Commercial Member Profile Published annually, the commercial profile contains survey highlights on demographic, economic and business characteristics of NAR’s
commercial members. realtor. org/reports/commercial-memberprofile Commercial Real Estate Outlook A free quarterly report from NAR Research, the Commercial Real Estate Outlook provides sector reports on office, multifamily, retail, industrial, and hospitality properties. realtor.org/reports/ commercial-real-estate-marketoutlook Commercial Real Estate Market Quarterly Survey An overview of market performance, sales and rental transactions, current economic challenges and future expectations. realtor.org/reports/ commercial-real-estate-marketsurvey Commercial Lending Survey Conducted annually, this report provides an overview of lending conditions that impact commercial transactions nationally, based on responses
from commercial real estate members. realtor.org/reports/ commercial-real-estate-lendingsurvey Commercial Podcasts This series engages top real estate professionals, economists and instructors to give you advice and the tools needed to get ahead in today’s competitive commercial real estate industry. All it will cost you is about 15 minutes of your time. realtor.org/ CCP Education & Professional Development NAR’s commercial affiliate organizations provide educational programs which promote professionalism and offer real estate designations. Affiliates include: CCIM Institute (cciminstitute.com), the Institute for Real Estate Management (irem.org), REALTORS® Land Institute (rliland.com), the Society of Industrial and Office Realtors®(sior.com) and The Counselors of Real Estate (cre. org).
SUMMER SCHOOL 2014 Summer School
Real Estate Career Academy offers a full range of continuing education and post-licensing educational classes this summer. Whether a member needs just a class or the entire seminar, RECA is able to assist. Not sure what classes are needed for license renewal? Contact Barbara at BCastillo@FAARmembers.com June 3, 4, 10, 12 Post Licensing Education Seminar June 11 Residential Standard Agency July 23 “Life after Short Sales” August 5 & 7 Continuing Education Seminar August 5, 7, 12, 14 Post Licensing Education Seminar
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Movement Mortgage, LLC is an Equal Housing Lender. NMLS # 39179 (www.nmlsconsumeraccess.org) | 877-314-1499. Movement Mortgage, LLC is licensed by the "Virginia Bureau of Financial Institutions" #: MC-5112. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage� is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.
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Local REALTORS Recognized 2013 Awards
2013 Professional Honor Role
®
Recognized for Professional Achievements and Association and Community Volunteerism
FAAR recognizes 38 REALTOR® members who have played many “Roles” in their professional and community life. They have accomplished career goals but have also given their time and energy to the community. The recipients accumulated 90 points in the categories of Association Activities, Networking Events, Education Activities, Membership in state and nationalInstitutes and Councils, Service/Civic Activities and Production.
NGUYEN R. BANKS
2013 REALTOR® of the Year
2013 Manager of the Year
ANN BLACK
DEBBIE IRWIN
1st Choice Better Homes & Land
Coldwell Banker Elite—Spotsylvania
GRI, CRB, ABR, SRES
2013 Rookie Salesperson of the Year
ABR, GRI
2013 REALTORS® Choice
SRS
Century 21 New Millennium— Fredericksburg
Nest Realty Group
Fredericksburg Area Association of REALTORS® 7678510.INDD
TRICIA BARNES
SUZANNE BRADY*
JENNIFER CAISON
CPM, GRI Banks Property Management
GRI, CRB, ABR, SRES 1st Choice Better Homes & Land
ABR, CRB, GRI, ABRM 1st Choice Better Homes & Land
CRB, ABR Century 21 AdVenture Redwood
ABR, SRS Coldwell Banker Elite—Massaponax
VALERIE DELLANDRE
HILARY F. DELWICHE
LINDA DORT
DREW FRISTOE
CLAIRE FORCIERROWE* ABR, CRB, GRI, CRS Coldwell Banker Elite—Massaponax
LINDA FOSDICK
ABR, CRB, GRI, ABRM Dockside Realty
DEBBIE JETT
DEBORAH K. KLINGENSMITH*
ABR, SRS Long & Foster Real Estate, Inc.—Fredericksburg
Coldwell Banker Elite—Massaponax
ABR, GREEN, SRES Century 21 New Millennium —Fredericksburg
ABR Coldwell Banker Elite—Massaponax
JO ANNE GREEN
NATALIE HOLT
DEBBIE IRWIN
LEAH JACOBSEN
Military Plus Realty Property Management
Century 21 New Millennium—Stafford
ABR, GRI, SRS Coldwell Banker Elite- Spotsylvania
ABR Coldwell Banker Elite—Locust Grove
LINDA LAUB-CANTY*
CINDY LEBRUN
LYNN LENAHAN
LATANA K. LOCKE*
Coldwell Banker Elite—Massaponax
ABR, GRI Century 21 New Millennium—Fredericksburg
BROOKE MILLER
BOB MERCURIO
ABR, GRI 1st Choice Better Homes & Land
ABR, GRI, SRS Coldwell Banker Elite—King George
CRS, ABR, GRI, CRB Long & Foster Real Estate, Inc.—Fredericksburg
ABR, GRI Realty World Select
BETH PANNELL
ELSA RAKE
ABR, CRS, GRI, SRES 1st Choice Better Homes & Land
ABR, CRS, SRS Coldwell Banker Elite—Massaponax
ERIN NEWBILL
BETTY NOLAN KISER CRS Long & Foster Real Estate, Inc.—Fredericksburg
1st Choice Better Homes & Land
MARY BETH RICH
ANTHONY “TONY” SHADE
SHARON SHADE
2013 Melanie Thompson Award
AMY CHERRY SARAH STELMOK ABR, GRI TAYLOR
Avery Hess, REALTORS®
ANN BLACK
ABR Banks Property Management
Coldwell Banker Elite—Massaponax
JOSHUA PHARES
MERLYN BANKS
ABR Century 21 New Millennium—Stafford
CHIP TAYLOR
For Area information go to www.faarmembers.com click on consumer.
* Indicates an original inductee.
Century 21 Battlefield Real Estate
ABR ReMax Allegiance
PENNY TRABER* ABR, GRI, CRS, SRS 1st Choice Better Homes & Land
ABR, ABRM REMAX Allegiance
ABR Century 21 AdVenture Redwood—Stafford
BONNIE RAMEY*
ABR,GRI Nest Realty Group
MATTHEW RATHBUN*
SANDRA STEIN
MELISSA STEWART
SARAH STELMOK
Century 21 AdVenture Redwood
GINNY VICKERS ABR 1st Choice Better Homes & Land
ABR, SRS Coldwell Banker Elite—King George
SHA WILLIAMS— HINNANT ABR, CRS, GRI 1st Choice Better Homes & Land
CRB, GRI, CRS, GREEN Coldwell Banker Elite—Stafford
ABR, GRI Nest Realty Group
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Movement Mortgage is Different
HOW WE DO BUSINESS Movement Mortgage Day 1:
Application taken and upfront items received electronically (W-2, Pay Stubs, etc.). File electronically submitted to underwriter with credit times.
Day 2:
Loan approved by underwriter with exact conditions.
Day 2-10:
Conditions collected by loan officer and processor.
Day 11:
File cleared to close. Package out three days prior to closing.
Our Competitors Day 1-2:
Loan officer takes application, runs automated underwrite, and sends approval to the REALTOR®. Loan officer sends loan package with a request for more information.
Day 9:
Loan officer receives loan package and sends to processing.
Day 14:
Processor calls borrower for additional items needed.
Day 18:
Client turns in more documentation. File is sent to underwriter.
Day 21-22:
Underwriter approves file subject to additional conditions. Loan officer, processor, and agent look for missing conditions.
Day 26-27:
Underwriter clears final conditions and closer begins working on the file.
Day 29:
Loan package sent to attorney.
Day 30-45:
Client is still waiting. Loan is projected to close.
HEATHER FRYE
d irect: (540) 645-6260 cell: (540) 295-7596 heather.frye@movementmortgage.com www.homeloansinva.com NMLS: 213439
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Movement Mortgage, LLC is an Equal Housing Lend er. NMLS # 39179 (www.nmlsconsumeraccess.org) | 877-314-1499. Movement Mortgage, LLC is licensed by the "Virginia Bureau of Financial Institutions" #: MC-5112. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage” is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.
Our Name Says It All.
Fredericksburg
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Complimentary breakfast • Complimentary wireless Internet • Ample free parking Surrounded by restaurants, entertainment and shopping in the heart of Central Park Workout room • Business center • Night club with live entertainment on weekends All rooms have balconies or walk-outs • Two restaurants 540/786-8321 • 800/682-1049 • 2801 Plank Road • Fredericksburg, Virginia Info@VirginiaLandmarkHotels.com • VirginiaLandmarkHotels.com
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Education Update NAR advocates for Commercial REALTORS® ISSUE: Dodd-Frank PCCRA Rules: NAR is concerned with the six banking agencies’ risk retention proposal, which contains a requirement that securitizers set aside the profits from sales of securities in “premium capture cash reserve accounts” (PCCRAs). This provision would greatly reduce the securitization market for many asset classes, thereby reducing a vital source of capital for the commercial real estate industry. Given this potential negative economic consequence, NAR believes the banking agencies need to provide Congress with a cost-benefit analysis of their PCCRA proposed rule.
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Dodd-Frank QCRE: The DoddFrank Act requires entities that securitize mortgage loans to retain 5% of the credit risk. However, the law gives federal banking agencies broad authority to identify the acceptable types, forms, and amounts of risk retention for “low risk” commercial and multifamily loans. In response to the law, six banking agencies have proposed 0% risk retention for “low credit risk” or Qualified Commercial Real Estate (QCRE) loans that meet a series of extremely rigid underwriting standards. NAR believes the six federal regulators need to withdraw, revise, and republish the rule for public comment because the rule: (1) violates congressional intent of the Dodd-Frank Act, (2) unnecessarily defines the QCRE exemption from the risk retention requirements to include only a narrow slice of the mortgage market, and (3) jeopardizes the fragile commercial
real estate market.
NAR Action: NAR has sent multiple letters to the U.S. House and Senate committees along with comments to regulators in support of polices that enhance the flow of credit to the commercial real estate industry. In addition, NAR testified at three Congressional hearings in the 112th Congress before the U.S. House Financial Services Committee on the requirements of Dodd-Frank.
ISSUE: Commercial Lead-Based Paint: The Environmental Protection Agency (EPA) continues to consider federal rules that may regulate renovation and remodeling activities in public and commercial buildings to address possible lead-based paint hazards. EPA is now estimating the release of a proposed rule for both the interior and exterior of commercial buildings in the summer of 2015. Currently, EPA is collecting information in an effort to get a better understanding of the existence of lead paint in public and commercial buildings, and the extent of renovation and remodeling activities in these structures. In March 2013, Senator James Inhofe (R-OK) introduced the “Lead Exposure Reduction Amendments Act of 2013,” which includes a provision directing the EPA to collect requisite health data for a commercial lead paint rule. NAR Action: Through a coalition of industry and contracting groups, NAR has met with EPA and other federal departments
to discuss the lead-based paint issue. Additionally, NAR submitted a statement for the record at a hearing on regulatory fairness for small business addressing lead paint regulations, and in July 2012 sent a letter to Rep. Graves (R-MO), the Chairman of the House Small Business Committee, thanking him for holding a hearing on the EPA’s compliance with the Regulatory Flexibility Act. On June 26, 2013, REALTOR® Harold Huggins testified on behalf of NAR at the EPA’s public hearing on renovation, repair and painting activities in public and commercial buildings. NAR successfully encouraged 51 members of Congress to sign onto a coalition letter to Acting Administrator of the EPA Robert Perciasepe, raising concerns over the EPA’s procedure for ensuring that a rule on lead paint in commercial buildings is necessary.
SPECIAL BREAKFAST FEATURING NAR PAST PRESIDENT RON PHIPPS AND CONGRESSMAN ROB WITTMAN!! What is it like to advocate on behalf of 1 million REALTORS®? What does it take to get elected to Congress? How is what’s happening in Washington going to impact my business? What can I do to protect myself? Come learn from Ron and get answers to all of these questions and more. This is a FREE event so register now! Thursday, June 5, 2014 8:30am-10:30am Fredericksburg Hospitality House & Conference Center 2801 Plank Road, Fredericksburg Plated breakfast included!
This event is FREE for all FAAR members! Register by May 29, 2014. Register online at www.FAARmembers.com or complete form below and fax to 540-736-0301. Name: ________________________________________________________ Company: ________________________________________________ Phone: _____________________________________ Email Address: _______________________________________________________________
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Strategic planning process begins- please participate if asked
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ver the next few months members will be asked to complete an electronic survey. The responses will be reviewed by those who will take part in a two-day strategic planning session in October. The results of the survey will be published.
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A focus night is also scheduled. Members representing different categories, for examplebrokers, top agents, newer agents, and those from commercial, property management, and appraisal specialties will be invited and asked to provide information regarding challenges, needs and wants, industry trends, membership services, etc. Please take the survey and if asked please attend the focus night. A good preparation will ensure the best strategic planning results.
FAAR’s Mission- FAAR provides members quality educational opportunities, tools for professionalism, and strong advocacy that contribute to member success.
News Faces, Fresh Ideas for the Fredericksburg REALTORS速 Foundation By Carolyn Liddell, President, Fredericksburg REALTORS速 Foundation
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he Fredericksburg REALTORS速 Foundation is off to a strong start in 2014 having raised nearly $4,000 at the Silent Auction held during the Awards Luncheon. The Foundation is rebuilding and refocusing in 2014 and I am encouraged by the great events we've held so far this year. Part of that rebuilding includes welcoming several new members who bring new energy and new ideas. I would like to welcome the following new Governors and thank them for volunteering their time to this great charity!
Joshua Phares Century 21 New MillenniumFredericksburg Tracy Miller Keller Williams Realty Alex Belcher MacDoc Realty
Donna Chandler Century 21 AdVenture Redwood
The Foundation is looking ahead to new activities, new fundraisers, and new charitable partners. So stay tuned and help us continue to give back to the Fredericksburg area community!
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Faarmembers.com: “I rarely go there!” By Pat Breme, RCE, CIPS, Chief Executive Officer he website is remodeled, more intuitive and is easily navigated through the tabs. It is rich in information and resources for members. Check it out!
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Here are some lights:
Tab- Home Upcoming events arranged in a calendar view. News and Events describes selected classes and events.
Tab- About FAAR A list of the membership fees is provided under Join FAAR. Official docs- the Strategic Plan, Bylaws, BOD Minutes and contact information on the Board of Directors and staff. Tab- Education Sign up for a class. Learn about CE and PL requirements and what’s needed to obtain various NAR designations. Tab-News and Events Review press releases, learn about an upcoming Expo, read editions of FAAR publications, reference social media requirements.
Tab- Directory Search for a member and find out which members speak other languages.
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Tab- Advocacy Need information on local governments in the areas FAAR serves? Marketing stats from MRIS (RBI) are available for members to use. The quarterly
reports have graphs and commentaries. The activities of the General Assembly session are reported, as well as, the activities of NAR’s REALTOR® Party. Learn what NAR is doing to protect the real estate industry and private property rights. All things RPAC are explained here. Tab- Consumer Great tab for home buyers. A link to the Free Lance Star’s Guide to Living provides an overview of Planning District 16. The public can search property through MRIShomes.com and find a REALTOR® through the Directory link. The FAAR’s Real Estate Showcase is linked. There is also information on licensing for those who might be interested in becoming an agent. The Why Use a REALTOR® video that the Public Relations Committee created is located here for viewing, as well as, helpful apps for homebuyers.
Tab- Member Resources By all means, create an account. There are also numerous forms under this tab including the Application for Membership, Agent Transfer and Termination forms. The VAR Legal Resource Center and a Helpful Links page are available. Want to nominate a member for a FAAR award? The forms are found here. Need to file a complaint or request an arbitration? The process for both as well as mediate is explained under this tab.
Tab- Get Involved Interested in joining a committee? A description of each FAAR committee is given, as well as, contact information for the Chair and Vice Chair. The Broker page provides helpful information to brokers, for example, a description of Slideshow is provided which is a sales meeting tool for the presentation of timely topics in a concise Power Point format. Links to VAR’s WorkSmart program and the updated Office Manual and Broker Toolkit are also included.
Additions are ongoing. Suggestions for improvements are happily accepted. Contact Lynn DeSena at ldesena@ faarmembers.com Sidebar: Annual election voting can be done at the site using an electronic ballot. 2014 balloting will begin in early September. www.faarmembers.com
Resource to TapNAR’s Virtual Library
Members can download books and audiotapes from the NAR Library free of charge. There is a read expiration deadline. Go to http://ebooks.realtor.org/ FA1B3B08-CB58-428A-885D59A1737A2258/10/50/en/ Default.htm
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NAR Leadership Academy
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Dedicated to helping you put buyers into homes Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. And, as the nation’s #1 residential mortgage lender, we provide a wide array of products and programs. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need. · · · ·
Congratulations to the Fredericksburg Women’s Council of REALTORS - named BEST NEW CHAPTER IN THE USA for 2013!
Purchase loans including FHA and VA programs Mortgages for high-end purchases Investment property financing New construction and renovation loans
No other lender is as dedicated to delivering quality products and services to you and your clients as Wells Fargo Home Mortgage.
We’re ready to help you put buyers into homes. Contact your Wells Fargo Home Mortgage consultant today. Wells Fargo Home Mortgage
3447 Fall Hill Ave, Fredericksburg, VA 22401 Office: 540-785-3301, Fax: 540-548-2016 www.wfhm.com/loans/fredericksburg-builderva Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1013503 Expires 4/2014
Sandy Pearce, 2014 President Fredericksburg, Anita Davis 2013 National President, Rebecca Straley, 2013 President Fredericksburg and Michael Straley Membership Director and President Elect slated to be President in 2015!
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Failure to disclose the required information in adverting is a violation of state regulation and a possible violation of Article 12 of the Code of Ethics
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s a reminder of the seriousness of providing the proper disclosure in advertising, FAAR is providing information from VAR’s Legal Hotline authored by VAR’s legal counsel Blake Hegeman. He answers questions regarding the requirements. Failure to make the required disclosures in advertising online and in print is also a possible violation of Article 12 of the Code of Ethics. Question: What are my disclosure obligations for online and print advertising?
Answer: Online ads for a firm must have: •Firm name; •City and state of main office; and •All jurisdictions in which the firm is presently licensed Online ads for a licensee (not a firm) must have:
•Licensee’s and firm’s name; •City and state of the licensee’s office (not necessarily firm’s main office); and •Jurisdiction(s) (usually states) in which licensee holds a license, active or not. For all other ads, the requirement is simply this: The firm’s name must be clearly and legibly displayed. 26
Question: What are the requirements for team
advertising?
Answer: The Board is very sensitive to team ads in which the team name is so prevalent, and the firm name so hidden, that the public could be confused as to whom they are dealing with. Firms should also be cautious about team names. We strongly encourage firms to limit team names to those that do not hold out the likelihood of confusion; teams should avoid realty, real estate, land, associates, partners, company, limited, consultants, sales, and properties. Use of the terms “team” or “group” is preferable. The key question is - does the ad leave the impression that the team is a brokerage firm acting independently? If it does, VREB will likely punish the offenders. Question: Is it true that the agent name (or team name) cannot be in larger print than the company name?
Answer: No, there is no such regulation. The bottom line is that all advertising – including team ads – must be clear and unambiguous as to the identity of the firm and that the team is a team, and not a brokerage.
Regarding a violation of the Code of Ethics… Article 12-Standard of Practice 12-5 Realtors® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®’s firm in a reasonable and readily apparent manner. This Standard of Practice acknowledges that disclosing the name of the firm may not be practical in electronic displays of limited information(e.g., “thumbnails”, text messages, “tweets”, etc.). Such displays are exempt from the disclosure requirement established in this Standard of Practice, but only when linked to a display that includes all required disclosures. (Adopted 11/86, Amended 1/11)
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Mineral Rights and Fracking: What an agent needs to know
What is fracking? The term “fracking” refers to a specific oil and gas extraction process called hydraulic fracturing in which a well is drilled deep into the earth and a mix of chemicals and water is injected into the well to force out oil and gas that are trapped in layers of bedrock. This technology is not new, but has garnered much public attention over the last few years as it has become more widely used across the country, especially in places with natural gas formations. Fracking is an effective way to remove natural gas and oil from tightly packed bedrock thousands of feet, even up to a mile or more, beneath the earth’s surface and has helped the United States produce more natural gas than ever before. Fracking has been a major boom to the energy industry, opening up many areas for production that were previously thought to be impossible to access. It is not without controversy however, and there are concerns about pollution, aquifer intrusion, and strain on local infrastructure.
What are mineral rights? Mineral rights are owning the rights to minerals under the surface of a piece of land. When potential buyers consider purchasing a piece of real property, most probably assume that they will hold absolute title to the land, free of any conditions, limitations, restrictions, or other claims and will own everything down to the center of the earth. This isn’t necessarily true. There is a long tradition in the United States of separating surface rights from mineral rights. An owner can decide to sell the land and all improvements attached to the land but retain the rights to any minerals found under the property. In the Fredericksburg area, there are communities where the Homeowners’ Association retains the mineral rights and others where the developer or builder has retained these rights. This has not been much of a concern for potential buyers since there has not been any drilling activity for oil, gas, or other natural resources in our area. That may change with the arrival of Shore Exploration and Production Corp. The energy company has relocated its headquarters to Bowling Green and currently has leases on over 80,000 acres of land east of Fredericksburg. Shore Exploration and
Production Corp hopes to find a partner that will begin drilling on leased land in the next 18 months or so. The technology that may be used, called hydraulic fracturing or “fracking” as it’s more commonly known, may open up significant natural resources in Caroline County, the Northern Neck, and other parts of our region.
Want more information?
U.S. Environmental Protection Agency: http://www2.epa.gov/ hydraulicfracturing VA Department of Mines Minerals and Energy: http:// www.dmme.virginia.gov/dgo/ HydraulicFracturing.shtml National Association of REALTORS® Fracking White Paper: www. faarmembers.com and click on “Hot Top-ics” under Advocacy VAR Legal Hotline FAQs, Disclosure: http://www.varealtor.com/legalhotline-faqs-disclosures FracFocus Chemical Disclosure Registry: www.fracfocus.org
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FAAR extends a very special invitation to be a participant in a dynamic new seminar created by one of NAR’s most endearing and motivational presidents, Ron Phipps. Ron is passionate about the business of real estate and his enthusiasm for using the traits of leaders in a career, on a committee, or for an association is contagious. Ron was president of NAR, the largest trade association in the US, while still listing and selling in his real estate company. He is the principal broker of Phipps Realty in Warwick, RI and holds the CRS, GRI, ABR, GREEN, e-Pro designations.
Volunteerism is good for business. Participate in an Interactive REALTOR® Experience for aspiring leaders.
Registration is Required.
REGISTER ONLINE — faarmembers.com - click “Online Registration” under Education and login to our registration system. OR BY FAX — complete the registration information below and fax to (540) 736-0301.
FREE
for Members Only! ($100 value)
Name: ________________________________________________________ Company: ________________________________________________ Phone: _____________________________________ Email Address: ____________________________________________________
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CAN SPAM Compliance
R
EALTORS® use email as a big part of their business whether it’s advertising open houses or staying in touch with former clients, and sometimes those communications can run afoul of federal anti-spam law. The CAN SPAM Act (Controlling
the Assault of Non-Solicited Pornography and Marketing Act) covers ALL commercial email communications, not just spam or bulk email. If you are emailing fellow agents an advertisement about an open house you have this weekend, that communication falls under the CAN SPAM Act. And violations can cost some big bucks, as much as $16,000 in some cases. So don’t violate the law and open yourself up to financial penalties, follow some simple rules and you will be compliant. 1. Each email you send for
business purposes must have a legitimate return address and must clearly state in the subject line the purpose of the email 2. Clear and conspicuous notice for the recipient to “opt-out” of future emails and promptly honoring opt-out requests. 3. Clearly indicate that the email is an ad early on in the message. To read more about the CAN SPAM Act, visit the Federal Trade Commission’s website at www.ftc.gov.
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By Paddy Osborne, Technology Chair During a recent and ongoing exercise to rebrand myself, I identified a need to be able to take a digital photograph and do more than the simple cropping and exposure adjustments that are available in the basic photo editing suites that come preinstalled with most computers and tablets. I wanted to be able to totally remove the background from an image.
Before
I know I don’t want to spend hundreds of dollars to purchase, or hours of my time to learn how to use professional grade picture editing software. A quick Google search for “Removing background from JPEG” quickly lead me to: https:// clippingmagic.com/...........what a life changer! The current site seems to be a fairly new service, as it clearly states at the top of the page that it’s in beta. Also at the bottom of the page there is a short paragraph noting that they are ‘Currently In Beta’, and inviting users ‘Please do give the service
a spin, and let us know of any issues’.
The service is free while it’s in beta, so images larger than 4 megapixel automatically get shrunk to that size. They intend to raise this limitation when they come out of beta which implies that there will be some kind of subscription fee when they have finished developing. Here is an example of what I was able to achieve with about 5 minutes of playing with the software. Let your imagination run wild, and think of the creative things you could do with things like property fliers and open house ads……ENJOY!
After...............................
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A SPECIAL THANK YOU TO FAAR’S 2014 MAJOR RPAC INVESTORS!
Melanie Thompson: $5,000 Suzy Stone: $2,500 Claire Forcier-Rowe: $2,500 Christine Singhass: $2,500 Alicia Angstadt: $1,000 Dave Moberly: $1,000 Pat Breme: $1,000 Drew Fristoe: $1,000 Suzanne Brady: $1,000* Sha Williams-Hinnant: $500*
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Debbie Irwin: $500* Linda Fosdick: $250 Dawn Josemans: $250 Mary Beth Rich: $250 Ralph DeRosa: $250 Mark Geslock: $250
Want to join this distinguished list of FAAR members? Make your contribution of $250 or more today! *Indicates a pledge for 2014