Insight | March 2013

Staying on Course

6 Key Tax Issues to Adhere to When Filing This Year

Cover Story

The new tax laws that went into effect in January bring implications and even complications into your filing for 2012. Here are a half-dozen key changes and/or trends to pay attention to at present and moving forward.

Five Minutes With …

Tony Smith of Wanda Smith and Associates in Charlotte had the best of tutors in this business — his mother. He’s taking those lessons learned to heart as he transforms the company she founded.

A Memorable Night in the Port City

More than 200 members of the NC Association of REALTORS®, plus dozens of family members and friends, gathered in Wilmington on Jan. 24 to celebrate the installation of Patrice Willetts as our 2013 president. We remember the evening in pictures.

By PATRICE wILLETTS PRESIDENT

We Need You Involved – in 2013 and Beyond

OuR yEAR hAS gOTTEN Off TO A gOOd START. SO MANy REALTOR® MEMBERS ARE TELLiNg uS ThAT ThEiR MARkETS ARE ShOwiNg SigNS Of iMpROviNg – SLOwLy, BuT iN ThE RighT diRECTiON wE ARE ALL vERy OpTiMiSTiC ThAT ThiS wiLL CONTiNuE TO BE ThE REpORTS fROM ACROSS NOT ONLy NORTh CAROLiNA, BuT ACROSS ThE NATiON

I am confident that our elected officials in Raleigh are listening and that they realize that even though we are beginning to head in the right direction, we are still not on solid ground. Any rule, regulation or legislation that does not take into consideration the impact to housing stands the chance of stalling our slowly progressing market improvement. There are still many unknowns to work through.

In Washington, the dialogue of MID is front and center with our federally elected officials. As you can see, it is a very busy and important year. I would like to thank everyone that has taken the time to read, listen and learn the issues, and then has taken the next step to find ways to participate. This is how we are going be effective.

That segues me to the REALTOR® Party. What is it, you ask? It is REALTORS® working together on three essential elements: vote, act and invest.

w Vote to protect REALTOR® interests and to educate the public about issues that affect property owners;

w Act in support of policies and regulations that promote property ownership and the real estate industry; and

w Invest in candidates who support REALTORS® and private property rights.

The year ahead promises to be filled with issues and policies fraught with the potential of having a negative influence on the fragile housing recovery. Please sign up for all the information that is available to us through NAR and NCAR so you can be as informed as possible. And then work with us to make our voice heard.

That mantra was front and center at last month’s NAR Issues Conference in California. A year ago, this same conference drew approximately 600 President’s Circle Club members – its invited audience – to Miami. This time around, more than 750 President’s Circle Club members were present, a substantial increase that was even more eye opening because the East Coast is more heavily populated.

I, for one, do not think the attendance increased because we have money to burn and just wanted a few days away from the office. I believe it’s because we are beginning to understand how important it is to be up to date on our issues, how important it is to vote, act and invest in what our industry stands for. That leads to a second meaning for the above three words:

w Vote as a means of using your voice to communicate what you believe in and what we stand for;

w Act as in speaking up and being an advocate for our issues and for property rights; and

w Invest by showing your support of RPAC as major donor, working to become a President’s Circle Club member (it’s well worth the investment, believe me).

More than ever, NCAR needs its members to focus on key issues. Please mark your calendars to be in Raleigh for Legislative Day on Wednesday, April 24. Our elected officials want to see and hear from us, and this is our chance to shine.

Then on May 13-17, I hope you’ll join us for the NAR Mid-Year Meetings in Washington. Along with legislative and policy updates, there are educational meetings, a trade show and time to meet and network with REALTORS® from across the nation and the world. Plus, we’ll have the honor of placing a wreath at the Tomb of the Unknown Soldier on Monday the 13th at 6:15 p.m. at Arlington National Cemetery. All NCAR members are invited to attend.

In closing, any of the above opportunities are your pathway to becoming an active member of the REALTOR® Party. I encourage you to do so, as it is the foundation of our industry.

Sincerely,

Patrice Willetts

Key Dates in the Coming Months

By KEVIN BRAFFORD EDITOR

Nationwide Open House Weekend April 20-21

MORE ThAN 70 pERCENT Of AduLTS AgREE ThAT BuyiNg A hOME iS ThE BEST LONg-TERM iNvESTMENT A pERSON CAN MAkE. ThAT’S EvEN iN ThE AfTERMATh Of ThE LONgEST ECONOMiC dOwNTuRN SiNCE ThE gREAT dEpRESSiON

To help potential home buyers realize their dream of owning a home and to call attention to the fact that an improving economy makes now the perfect time to buy, the National Association of REALTORS® again is promoting a Nationwide Open House Weekend. This year’s dates for the third annual event: Saturday and Sunday, April 20-21.

During that weekend, it is the hope that NC REALTORS® from across the state will join with their peers from around the country in holding open houses from coast to coast, aiming to focus attention on the benefits of home ownership on families, communities and the economy.

The numbers tell the story.

5 According to a recent U.S. Census Bureau report, where North Carolina ranks in terms of the fastest growing states in the country. The four above us: Texas, California, Florida and Georgia..

13.3 In millions, the estimated amount that American Homes

4 Rent, a California company, has paid for 81 houses in Wake County since last December. The company plans to convert the houses into rental homes.

A strong majority of renters surveyed in a Pew Research Center study – 81 percent – said they would prefer to one day buy a home. In addition, respondents rated being able to own a home as their top long-term financial goal. (The next three long-term financial goals, if you’re curious: being able to live comfortably in retirement; paying for your child’s or children’s college education; and leaving an inheritance for your child or children.)

So, REALTORS® are being asked to hold open houses in various local neighborhoods throughout North Carolina the weekend of April 20-21 to provide guidance and insights into the social and financial benefits of home ownership. You’ll also be in a position to answer questions about the local housing market and the home buying and selling process.

Later this month, your local association executive will be emailed marketing materials that he or she can use – and forward to you for your use as well – to help promote the event. We’ll also post them on our website. Good luck! v

21 The number of months, through January, that pending home sales nationally have been above year-before levels, according to the National Association of REALTORS®. That means this statistic had held true since since the spring of 2011.

925 In thousands, the annual rate of permits that builders filed for in the United States during the month of January. The number reflects a 2 percent increase from December and a 35 percent increase from January 2012.

1780 In square feet, the size of the typical home purchased, according to NAR’s most recent survey of buyers and sellers. Said home included three bedrooms and two bathrooms.

This is My Ticket and My Time - I’m a Happy Man

I was born in Orlando (Fla.) but grew up all over the Southeast. My dad (Earl Smith) at the time was a Kmart store manager, and he was constantly getting transferred – I remember as a kid picking up and moving all of the time. As I got older, it wasn’t easy to do. The last move, from Montgomery (Ala.) to Charlotte as a ninth-grader, in the middle of the school year, was especially tough. You’re leaving behind friends, a girlfriend, your whole life.

My mom, Wanda Smith, got her start in the business selling our houses. When we’d have to move because my dad had been transferred, she’d put our house on the market, and if it didn’t sell in a few weeks she’d find someone to list it. But she sold three of them that way, as a “for sale by owner.”

I went to Catawba College to play football but only stayed for a year and a half. If I had it to do over again, knowing what I know now, I’d have finished school. But I got a summer job at IBM, working in the design group, and I loved it and was good at it. I was set to transfer to UNCC (UNC Charlotte) because it had engineering (which Catawba didn’t), but interviewed for a position at Duke Power and got offered a job right then. So I spent the next five years on a drawing table working in pipe design.

My mom began formally in real estate in 1978, going to work for Sandra Townsend. I watched her through the years become successful, and I learned so much from her. And I watched the wealth being created in real estate. Eventually I came around to thinking that if she could do it, I could too. What I’ve come to understand through the years is that this business is not quite as easy as a lot of people think it is.

I took a detour and went to work for a builder for a few years. Essentially, I reentered the business in 1994. My mom had been diagnosed with cancer. I took over the company in the spring of 1994, and she died that August. She always thought of everything, and she’d have thought of something I didn’t – that I should have kept her phone number as my own. I get phone calls to this day from people who did transactions with my mom, but if I’d kept her number, who knows how often that phone would ring. She was so good at what she did.

NAME

Tony Smith

LOCATION

Charlotte

FIRM

Wanda Smith & Associates

LOCAL ASSOCIATION

Charlotte Regional Association of REALTORS®

(Above) Tony poses with a portrait of his mother and the company’s founder, Wanda Smith, in the background.

(Left) Nancy and Tony Smith with their grandchildren, Caden and Reagan.

We got involved as a company in the default industry. And a large part of our business in the past 15 years has been foreclosure. But that correction in the marketplace is coming. For someone who said exactly 10 years ago, “I’m not going to grow,” here as I am, growing. I’m trying to reshape us back to the traditional brokerage model.

Nancy (his wife) and I met when we worked together for a builder years ago. We stayed in touch the whole time and dated for a long time too. We got married in July 2001, which unfortunately was just after my dad died. It also was the same year that Nancy’s daughter was getting married. We didn’t want to take away from (the daughter’s) lead up and big day here, so we did something different: We got married in Alaska.

We did an inside passage cruise, and when we got off the ship in Juneau, I chartered a helicopter. There were six of us total on the helicopter, including Juneau’s wedding commissioner. We flew over all these glaciers and then found one to set down on. And that’s where Nancy

and I got married – on a glacier. Getting married that way wasn’t a regular thing back then; in fact, there was a story about us in the newspaper the next day. Now, it’s more common.

I never had any kids of my own, but I’m lucky now to have two stepdaughters and two great sons-in-law. And we have a grandson (Caden, 8) and a granddaughter (Reagan, 9) who are both into rodeo, like my sons-in-law. Watching them compete is really a thrill. I’ve told Nancy that having them is like, “this is my ticket and my time.” I’m a happy man.

The most challenging thing is finding time away from the grind. I’ll turn 53 this year, so I’m not to the point where I can retire. I like to go see the Panthers play, and we have a little place at Myrtle Beach that we get to when we can. And I love my car: My brother’s the general manager at a Jaguar dealership, and I just got a XJL Supercharged that has 475 horsepower. It’ll go from 65 to 95 in nothing. I tell you, if I had the money and the garage space, I’d be into collector cars, for sure. v

Taxing Matters

By Bridget McCrea

There’s been a lot of buzz about taxes this year as Bush-era tax cuts expired and the American Taxpayer Relief Act of 2012 (ATRA) kicked into gear on Jan. 1, 2013. Everything, from payroll taxes to medical spending accounts to investment income, was impacted by the 11th-hour wrangling over the looming “fiscal cliff” (a sharp decline in the federal budget deficit that could have occurred beginning in early-January 2013) that dominated the headlines late in 2012.

So what do these changes mean for NC REALTORS® – most of whom operate as self-employed/small business owners in the eyes of the IRS and many of whom own and rent out properties to produce side income? Here are six key tax changes and/or trends to keep an eye on when filing 2012 taxes and planning for the rest of 2013:

1 2 3 4

Here are 6 key Tax issues that you Should pay Attention to This year

ThE IRS hAS STEppEd up RENTAL pROpERTy AudITS. If you own rental property, and if you write off tax deductions related to that property, make sure you play an “active” role in its management. Charlie Egerton, a partner with law firm Dean Mead in Orlando, Fla., says he’s seen a marked increase in the number of REALTORS® who are audited for this reason. “There are significant limitations on a taxpayer’s ability to claim a tax loss on a rental property held for investment purposes,” says Egerton. “After years of widespread abuse and misunderstandings on this point, the IRS has increased oversight in this area.” To avoid problems here, Egerton says REALTORS® should maintain meticulous records regarding their hands-on/active participation in the properties’ maintenance and management.

5 pERCENT MORE IN CApITAL gAINS TAx FOr HigH-incOMe Taxpayers. REALTORS® and/or their investor-clients who earn more than $400,000 annually (or $450,000 for a couple) will be subject to a 5 percent increase in capital gains taxes this year (from an original 15 percent). “This 20 percent in capital gains won’t catch a whole lot of taxpayers due to the income threshold,” says egerton, “but it’s definitely something for reaLTORS® to keep in eye on, particularly those who work with high-income investors.”

ThE NET INvESTMENT INCOME TAx (NIIT).

If you have investment income – including longterm capital gains or rental property income – and earn more than $200,000 annually ($250,000 for a couple), you could be subjected to NIIT, a new tax that was enacted as part of the president’s Obamacare in 2010 (it kicks in this year). The 3.8 percent tax is levied on net investment income. Active real estate rentals aren’t subjected to this tax, says Egerton, but triple-net leases and gains from the disposition of property could fall under its jurisdiction. Check out IRS tax code section 1411 for more details on this tax.

ThE STEALTh TAx RE-REARS ITS ugLy hEAd. president Bush cancelled the stealth taxes, which effectively phased out the personal exemption and the benefit of itemized deductions. “now they’ve resurfaced and apply again,” says Egerton. Certain taxpayers who itemize deduc-

5 6

tions and/or take personal exemptions will pay an additional 1.8 percent in stealth taxes this year on top of their regular tax obligation.

THe Fica Tax break nO LOnger exisTs. If you write yourself a paycheck you’re probably taking home less money this year, thanks to the expiration of the Fica tax break. as a result of the Fica tax break expiration, tax rates this year increased from the previous 10 to 35 percent to a current 15 to 45 percent. “That’s thousands of dollars that REALTORS® and brokers will have to get used to not having anymore,” says Tiffany Washington, founder and owner of Washington Accounting Services, Inc., in Waldorf, Md.

SEvERAL TAx CREdITS ExpIREd ThIS yEAR

The American Opportunity Credit, which in 2011 and 2012 allowed for a non-refundable tax credit of $1,500 and a refundable credit of $1,000, no longer exists. “We’re going back to the regular educational credit, or $2,500 off the top of taxes owed,” says Washington. Other changes include a $500 reduction in the child tax credit (down from $1,000) and an increase in the medical expense allowance to 10 percent (from a previous 7.5 percent) of adjusted gross income (AgI).

Other key tax changes to keep in mind include a $2,500 cap on the amount of money that you can put in a flexible spending account (Fsa) – a cap that was previously instituted by employers; the ability to keep qualified children on a parent’s plan until the former reaches age 26; and a $2 million annual spending cap (up from $1.25 million in 2012) on how much an insurer pays out to care for someone with a chronic or expensive medical condition.

On the brighter side, REALTORS® will soon have access to the health Insurance Marketplace (www. healthcare.gov/marketplace), where individuals and small businesses will buy affordable and qualified health benefit plans (open enrollment begins in the Fall of 2013), and new tax credits for families with income between 100 and 400 percent of the poverty line who are not eligible for health coverage (coming in 2014). v

A Night to Remember in the Port City …

More than 200 NC REALTORS® celebrated the formal installation of patrice Willetts as the state association’s 2013 president on Jan. 24 at the Wilmington convention center in her adopted hometown. The 2013 officers were installed, and Lou Baldwin, NCAR’s outgoing president, was recognized for his leadership during the year just past. Food, drink and smiles were aplenty throughout the gala, which wrapped up three days of education and meetings to kick off the new year. v

1 It was 2013 NCAR president patrice Willetts’ night to be center stage. Here she’s flanked by Connie Corey and Marsha Jordan.

2 NAR past president Ron phipps, posing with Sandra O’Connor and Bruce Williams, was one of the evening’s special guests.

3 New hanover County Commissioner – and REALTOR® – Jonathan barfield with his wife, Laura. 3

1 2

9

night ended … at some point … with attendees dancing until their hearts were content and their feet tired.

4 The Wilmington Convention Center ballroom was filled with hundreds of nc reaLTORS® along with family and friends of patrice Willetts.

5 REALTOR® george Bell of Winston-Salem entertained as the master of ceremonies.

6 Station One performed the national anthem.

7 With outgoing president Lou Baldwin (right) and ken Willetts looking on, Victoria Willetts “pins” her mom.

8 Treasure Faircloth (Treasurer) and Tomp Litchfield (president-elect) are two members of the NCAR’s leadership team for 2013.

The

RPR Announces Alliance with Fannie Mae

SiNCE iTS fORMATiON iN 2009, REALTORS®

pROpERTy RESOuRCE’S (RpR) CORE MiSSiON hAS BEEN TO pROvidE ACCESS TO ROBuST pROpERTy dATA ANd AdvANCEd TEChNOLOgy fEATuRES iN ORdER TO ASSiST NAR MEMBERS iN CREATiNg NEw BuSiNESS OppORTuNiTiES ANd TO iNCREASE ThEiR

EffiCiENCy iN ThE hOuSiNg MARkET – TO ThE uLTiMATE BENEfiT Of ThEiR CONSuMERS

Earlier this month, RPR announced the formation of a strategic alliance partnership with Fannie Mae. The partnership focuses on increasing efficiencies in the short-sale approval

Deadline to Apply for Elected Positions is March 29

ThE dEAdLiNE fOR RECEiviNg AppLiCATiONS fOR

2014 NCAR OffiCERS, NAR diRECTORS ANd iSSuES

MOBiLizATiON COMMiTTEE MEMBER iS MARCh 29.

Those to be elected are president-elect, treasurer, regional vice presidents from Regions 1, 2, 5, 7, 8 and 10, three at-large members to the Finance and Budget Committee, and one Issues Mobilization Committee member.

Determination of the number of NAR directors to be elected, if any, will be made as of July 31. However, any interested members must send in their application no later than the application deadline so they can be considered for any NAR director openings that may be available.

On-line voting will take place Aug. 26-29. Any interested NC REALTORS® member should contact Donna Peterson at dpeterson@ncrealtors.org or 336-808-4221 for an application. v

process for REALTORS® and their clients.

One of the results of this partnership is an expansion of the existing REO listing information available to REALTORS® in the RPR application, and the delivery of new and specialized training options.

The increased functionality of RPR, as well as the development of new tools and features, is expected to leverage the power of the RPR application. The overall strategy is designed to assist in reducing the time for REALTORS® to bring distressed properties to market, plus reduce the time it takes to close the sale of these properties. v

Sullivan Named to Real Estate Commission

RiChARd L. SuLLivAN Of RALEigh

hAS BEEN AppOiNTEd By fORMER

gOv. BEvERLy pERduE TO ThE

NORTh CAROLiNA REAL ESTATE COMMiSSiON

Sullivan is a founding partner of Capitol Counsel LLC, which provides public affairs, government relations and business development services to a broad range of Fortune 500 companies and leading trade associations. Capitol Counsel has offices in Raleigh and Washington, D.C.

Richard Sullivan

He has received degrees from the University of South Carolina and Georgetown University Law Center.

The N.C. Real Estate Commission is responsible for the regulation of approximately 95,000 real estate firms and agents in the state. v

Political Specialist Added to NCAR Staff

Dominic Palvisak is ncaR’s most Recent hiRe in the goveRnment affaiRs DePaRtment as ouR new Political sPecialist. he is chaRgeD with hanDling the BRokeR involvement PRogRam, the feDeRal anD state Political cooRDinatoR PRogRams, anD lanD-use initiatives.

Palvisak is a seasoned political strategist and grassroots organizer, having worked and consulted for dozens of campaigns across three battleground states: Florida, Virginia and North Carolina. His experience includes local, state and federal races,

Help us Find Good Neighbors in your Community

REALTOR MAgAzinE is seeking nominees foR the 14th annual gooD neighBoR awaRDs, which Recognize RealtoRs® who imPact theiR communities thRough volunteeR woRk.

Five winners will be recognized at the 2013 NAR Conference & Expo in San Francisco and receive travel expenses to attend the show and a $10,000 grant for their community cause.

Volunteer work might include affordable housing initiatives, youth mentoring, homelessness prevention, or anything else that makes a community a better place to live. Entries must be received by May 20.

For an entry form, visit http://realtormag.realtor.org/goodneighbor-awards. v

as well as issue advocacy campaigns at those levels.

Prior to coming to North Carolina, he served as a legislative assistant in the Virginia House of Delegates, where he handled a variety of issues, including growth and development.

Palvisak earned his bachelor’s in history, with a concentration on Eastern Europe in the 20th century, from the University of Florida. v

Dominic Palvisak

By jULIE wOODSON DIRECTOR OF POLITICAL COMMUNICATIONS

Tax Reform Measures Still Taking Shape

ThE NC gENERAL ASSEMBLy hAS BEEN wORkiNg fAST ANd fuRiOuSLy SiNCE RECONvENiNg ON JAN 30, ANd hOuSE ANd SENATE LEAdERS SAy ThEiR TOp pRiORiTiES iNCLudE TAx REfORM, EduCATiON ANd REguLATORy ChANgES

“Tax reform” has definitely been a hot topic, although no official bill has been filed. A top adviser to Gov. Pat McCrory has said that the governor’s office is in the beginning stages of discussions with legislators on an “evolutionary” plan.

At NCAR’s Inaugural Meetings in Wilmington in late January, 2013 President Patrice Willetts unveiled a video detailing our association’s views on the current tax reform discussion. “Our legislative efforts should be to focus on a fair and balanced plan that rewards North Carolina’s hard-working families and should support and encourage homeownership,” Willetts says in the video. “We know we can work together with our new governor and legislature to accomplish the greatest good for our commerce, our people and our future generations.”

The NC REALTORS® government affairs team also has been working proactively to educate the newly elected leaders about how the real estate marketplace drives the state’s economy and why it is important that the industry be supported, not harmed, with any new legislation. Watch your inbox for a Government Affairs Update for alerts as soon as a tax reform bill is introduced.

In other matters of interest to NC REALTORS® and property owners, House Bill 8 (Eminent Domain) has passed the House. The bill would allow voters to decide whether to make it more difficult for governments to condemn property for economic development purposes. The bill calls for an amendment to be put on ballots across the state in November 2014. The amendment also would allow property owners to receive a jury trial to pursue just compensation if the property owner calls for it. Similar legislation has passed the House three times in the last several years, but the Senate has never allowed the bill to be heard. House Bill 8 was sent to the Senate and was referred to the Rules Committee.

Hydraulic fracking in North Carolina is a hot topic again this legislative session. Senate Bill 76 (Domestic Energy Jobs

Act) would allow state regulators to begin issuing permits by March 2015 for natural hydraulic fracturing and would impose an initial 1 percent tax on extracted shale gas, with the tax to rise to 6 percent by 2020. The tax revenues would be divided between the state’s general fund, an environmental/ emergency fund and regulatory expenses. As of press time, the bill had passed the Senate and was sent to the House for consideration.

In regulatory agency news, there have been significant changes at the N.C. Department of Environment and Natural Resources (DENR) that the business community considers positive. DENR’s new mission statement addresses fundamental economics as it relates to rulemaking in North Carolina. Under the new leadership of Secretary John Skvarla, DENR has indicated it will be continually aware that an economic cost/benefit analysis should be an integral component of the department’s efforts.

In other changes at DENR, former Rep. Mitch Gillespie of Marion has been named assistant secretary for the environment. He will help develop major policy initiatives for many programs, including air emissions permits and animal operation regulations. Gillespie, who has been a supporter of the real estate industry, served in the N.C. House for 14 years.

Gillespie said he will be touring the DENR Regional Offices at the conclusion of the legislative session to learn firsthand how DENR can better serve North Carolina. Please email Cady Thomas (cthomas@ncrealtors.org), director of government affairs, any personal accounts, both good and bad, of DENR’s effect on the real estate industry in your area.

“The input from REALTORS® across the state will be extremely helpful in providing DENR with examples of ways they can either improve relations with the public or promote the positive things the regional offices are already doing for the public,” Thomas says. “We look forward to having our REALTORS® and their clients as well as NCAR work with the new DENR and the new secretary.”

Watch for information about these and other public policy issues in our weekly Government Affairs Update, which is emailed every Friday during the legislative session to all NCAR members. v

2013 Broker Involvement Program

ONE Of ThE gOALS OuTLiNEd iN ThiS yEAR’S NATiONAL ASSOCiATiON Of REALTORS®’ pRESidENT’S Cup iS TO ExpERiENCE 10 pERCENT pARTiCipATiON gROwTh iN ThE BROkER iNvOLvEMENT pROgRAM (Bip).

In order to accomplish this goal, NCAR needs more than 60 of our broker owners and managers to step to the plate! Here’s a brief primer:

w What is BIP? The Broker Involvement Program empowers brokers and their agents to have influence over key legislation at the state and national levels through the use of Calls for Action (CFAs). Calls for

Action are issued by NAR to agents on behalf of their broker. No downloads. No forwards. NAR does the work for you! And it’s free!

w Power in numbers. The system is proven to increase participation in CFAs by merging new political tools with old fashioned person-to-person contact. More than 40 percent of responses to CFAs are from participants in the BIP program.

w Not just an award at stake. As the real estate market recovers, it’s more important than ever that we urge our leaders to execute the duties of their office with the American dream of homeownership on their mind. It’s our responsibility as REALTORS® to let our voice be heard!

So sign up today … it’s as easy as 1-2-3! Visit www.realtoractioncenter.org/brokersjoin, simply fill in your information and then click “Submit.” It’s that simple. For more information, contact NCAR Political Specialist Dominic Palvisak at dpalvisak@ncrealtors.org or 919-573-0984.

Contact Us: Members of the NC REALTORS® staff can be reached Monday through Friday during regular business hours of 8:30 a.m. to 5 p.m. at 336-294-1415 or via email using the person’s first initial and last name@ncrealtors.org. Our fax number is 336-299-7872.

Administrative Andrea Bushnell Executive Vice President 336-808-4220

Bryan Jenkins Chief Financial Officer 336-294-3112

Denise Daly

Membership Records Coordinator/Bookkeeper 336-808-4223

Sherry Harris Administrative Assistant 336-808-4230

Amanda Lowe Accounting Assistant 336-217-1048

Phyllis Lycan Accountant 336-808-4224

Donna Peterson Executive Assistant 336-808-4221

Sarah Beth Coggin Partners Program Manager 336-217-1047

Blair Wilburn Director of Business Development 336-808-4228

Communications & Marketing Kevin Brafford Director of Communications and Marketing 336-808-4225

Samantha Ashburn Electronic Communications Manager 336-808-4226

Professional Development Ellie Edwards Director of Professional Development 336-808-4231

Monica Huckaby Professional Development Coordinator 336-217-1051

Legislative Cady Thomas Director of Government Affairs 919-573-0996

David McGowan Director of Regulatory Affairs 919-573-0994

Julie Woodson Director of Political Communications 919-573-0992

Dominic Palvisak Political Specialist 919-573-0984

Kristin Miller RPAC Manager 919-573-0995

Nicole Arnold Shared Local GAD 336-808-4237

Legal Will Martin General Counsel 336-808-4238

Kay Bailey Legal Assistant 336-808-4235

Events

Mandy Lowe Events Director 336-808-4236

Keri Epps-Rashad Meeting Planner and EXPO Manager 336-217-1049

By wILL MARTIN GENERAL COUNSEL

Slim Gets ‘Schooled’ on NCAR Forms Policy

Dear Forms Guy: I have a client who I have represented in purchasing several investment properties. He intends to fix them up and lease them himself. Can I supply him with blank lease forms from the NCAR forms library for him to use? Sincerely, Slim

Dear Slim: I’m afraid not. NCAR has a Forms Policy that describes in detail who can use NCAR’s standard forms and under what circumstances the forms may be used. According to the Forms Policy, “Permitted users may use NCAR’s standard forms in connection with a transaction in which the permitted user is involved as a broker or a principal. Permitted users may not distribute blank NCAR’s forms to clients, customers or others, either gratuitously or for a fee, except that they may distribute specimen copies of any NCAR form to their clients or customers for review purposes.” Sincerely, Forms Guy

Slim: Who are “permitted users?”

Forms Guy: According to the Forms Policy, the following persons may use any of NCAR’s standard forms:

w REALTOR®, Affiliate, and Allied Members of NCAR;

w REALTORS® from other states (upon satisfactory proof of such membership); and

w Non-member sales associates of REALTOR® member firms. (However, a non-member is not allowed to purchase the forms directly or access the forms via the NCAR website.)

In addition, members in good standing of the North Carolina State Bar are allowed to use NCAR’s “transactional forms.”

Slim: What’s a “transactional form?”

Forms Guy: Any form used in connection with a real estate sales or lease transaction by the parties to the transaction is considered a “transactional” form, and is designated as such by the addition of a “T” after the form’s form number found in the lower right-hand corner of the form. All other forms are considered “non-transactional” forms. An example of a transactional form would be the Offer to Purchase and Contract. An example of a non-transactional form would be any of the listing, management or buyer agency agreements.

Slim: You said that it was okay for us to give sample forms to our clients for review purposes. I always give my new seller and buyer clients a copy of the Offer to Purchase and Contract when they sign the listing or buyer agency agreement. It would be convenient if I could put a sample of that form on my website. Is that okay?

Forms Guy: According to the Forms Policy, members may not display sample copies of NCAR forms on their own websites, but they may link to NCAR’s site where the sample forms are displayed. That’s actually easier for you because you don’t have to keep up with changes to the forms – it’s done for you “automatically” since the sample forms are kept current on the website where they are displayed.

Slim: What’s the website where the sample forms are displayed?

Forms Guy: It’s the North Carolina Living Network (www. nc.living.net). Click on “Consumer Information” on the left-hand side of the home page and then on the next page click on “NCAR Sample Forms” under “Other Helpful Information.” The forms are listed in numerical order.

Slim: Thanks, Forms Guy. If I have other questions, is a copy of NCAR’s Forms Policy available for me to review?

Forms Guy: Yes. After you log onto the NCAR website (www.ncrealtors.org), click on “Legal Department” on the left-hand side, and on the Legal Department page you’ll see a link to the Forms Policy under “Standard Forms.” And while you’re there, check out all the other good stuff on the Legal Department page! v