Insight | October - December 2011

6 Cover Story

Myriad factors are contributing to weak consumer confidence and hesitation among would-be homebuyers. This story provides suggestions to helping get potential buyers off the fence.

Features

New

On Oct. 1, members of the NC Association of REALTORS®, for the first time, will be able to utilize zipForm® – the industry leader – at no additional cost benefit. Learn all you need to know to make the transition from Realfast.

Lavish Time, Lavish Place

Good times were had by all at the 2011 Convention & Expo in mid-September, as neither the 90th annual conference nor The Greenbrier disappointed NC REALTORS® who made the drive to beautiful White Sulphur Springs, W.Va.

Housing Opportunity Foundation

REALTOR® Partners Program

The Forms Guy Government Affairs

By Stephanie Walker President, NC Association of REALTORS®

Great Strides Have Been Made This Year

It’s difficult to believe that most of 2011 is behind us, as it seems just a short time ago that in this space you were reading about my theme for the year as your president … to focus on the future as NC REALTORS®.

While that was nearly nine months ago, what a nine months it’s been! We began planting the seeds for our growth in 2011 early in 2010, and the advance planning was necessary to accomplish all that we have. Here are the highlights:

> An important foundation was laid in January with the Board of Directors’ adoption of the recommendations put forth by the Financial Presidential Advisory Group (PAG). It’s a plan that’s financially sound and establishes a goal of being out of debt within five years. It also was a precursor to another financial decision, the August sale of Realfast to zipLogix, a proactive move that guarantees zipForm® – the gold standard in forms software – as a member benefit for the next five years.

> We revamped our State Political Coordinator (SPC) initiative, and the result is a stronger, robust program that, coupled with our excellent Government Affairs staff, guarantees our continued presence in Raleigh. We further demonstrated our commitment to influencing public policy and protecting private property rights with the creation of a Government Affairs Directors (GADs) listserv. And we highlighted some of the myriad ways that REALTORS® positively affect their communities by publishing our first Social Responsibility Report.

> Within the halls of the General Assembly, we continued to make a difference. We gained a huge victory early in the legislative session with passage of the “Repeal Land Transfer Tax” bill, which eliminated the transfer tax option given to county governments in 2007. And regarding an issue that we had been working on since 1997, we finally were able to celebrate passage of the “Commercial Broker Lien Law,” ensuring that our commercial brokers are paid for their hard work.

> Outside of Raleigh, our voices have been heard – and our faces seen – on numerous fronts statewide. We worked the economy to our advantage in purchasing top-of-the-line used equipment to outfit a video recording studio in an empty office of our Greensboro headquarters. It was put to good use immediately as I had the honor of taping a message (a first-in-the-nation plan!) educating members and the public on the importance of the Mortgage Interest Deduction (MID). That was a hot topic at two successful events we hosted: the Region 4 Leadership Retreat in Asheville and the Regional AE Conference in New Bern.

> We made the initial steps in transforming education for the future. NCREEF completed a well-received strategic planning session focused on creating and licensing education content and working with universities to ensure that members have access to critical research. We then formed an Education PAG to examine how best to deliver affordable and timely education to our members.

Yes, much has been done … but there’s more to do, which is why we continue to stay focused on the future.

Sincerely,

Volume 90, Issue 4

NC Association of REALTORS® Inc.

Chartered in 1921

PRESIDENT Stephanie Walker, Kill Devil Hills

PRESIDENT-ELECT

Lou Baldwin, Winston-Salem

TREASURER

Tom Barton, New Bern

IMMEDIATE PAST PRESIDENT

Mary Edna Williams, Raleigh

REGIONAL VICE PRESIDENTS

Michael Davenport, Kill Devil Hills, Region 1

Tori Humphrey, Ocean Isle Beach, Region 2

Jay Dowdy, Fayetteville, Region 3

Tony Craver, Durham, Region 4

Kevin Green, Greensboro, Region 5

Vernon Luffman, Mount Airy, Region 6

Marlene Peeler, Shelby, Region 7

Roger Parham, Charlotte, Region 8

Donna Anderson, Charlotte, Region 8

Steve Dozier, Hendersonville, Region 9

John Wood, Cary, Region 10

Theresa Clark, Cary, Region 10

EXECUTIVE VICE PRESIDENT

Andrea Bushnell

EDITOR

Kevin Brafford

ASSISTANT EDITOR

Barbara West

BUSINESS OFFICE

NC Association of REALTORS® Inc. 4511 Weybridge Lane Greensboro, NC 27407

Phone: (336) 294-1415

Toll Free: (800) 443-9956

Fax: (336) 299-7872

Insight (USPS 017602) is published quarterly by the NCAR Management Corp., 4511 Weybridge Lane, Greensboro, NC 27407. Member subscriptions of $3.90 are covered by annual membership dues. Periodicals postage rates paid at Greensboro, NC.

POSTMASTER: Send address changes to Insight; 4511 Weybridge Lane, Greensboro, NC 27407.

Advertising of a product or service does not imply endorsement, unless specifically stated.

For all the latest news and business tools, check out www.ncrealtors.org.

Standard Contract Forms

Download forms software directly from our website.

Free Web Page Use this free marketing tool to connect with your customers online.

Online CE

Complete elective continuing education requirements at your convenience using RECampus.

Discounts on Insurance and More

Great discounts on the products and services you use every day from NCAR’s REALTOR® Partners.

Stephanie Walker

Key Dates in the Coming Months

Nov. 9-14

Nov. 14-17

Dec. 6

Dec. 7

Dec. 12-15

Jan. 24-27, 2012

Jan. 25

March 16-20

May 14-19

June 4-6

Sept. 9-12

National Association of REALTORS® Conference & Expo

GRI 300

Executive Committee Orientation

Committee Chair/Vice Chair Orientation

GRI 100

2012 Inaugural Meetings

Vision Quest

NAR AE Institute

NAR Midyear Meetings

NC REALTORS® Legislative Meetings

NC/SC REALTORS® 2012 Convention & Expo

Anaheim, Calif.

Carolina Beach

Greensboro

Greensboro

Charlotte

Winston-Salem

Winston-Salem

Louisville, Ky.

Washington, D.C.

Raleigh

Savannah, Ga.

Association Silver

The North Carolina CoreLogic MarketLinx eXp Realty, LLC PEMCO, LTD.

of REALTORS® Would Like to Thank Our Sponsors... Gold Platinum Rapattoni ZipLogix 3 INSIGHT October-December 2011

By Kevin Brafford Editor

Insight to Take Modern Approach in 2012

No one’s calling me an old fart just yet, at least not to my face (and please don’t take it personally, all you old farts), but as Bob Dylan first sang way back when, the times they are a-changin’.

My first attempt at real journalism began as a 17-year-old high school senior when an emergency appendectomy sidelined the sports editor of our local newspaper. A pinch-hitter (yep, I’m mixing metaphors) was needed to cover a football game, and I was asked to fill in.

The year was 1978. I used an electric typewriter to file my story that night, and magically – through a series of steps that I never had to understand because they’d soon be obsolete – it appeared in print the following day.

Only one word in the above paragraph is germane in today’s print publication world, and that word is “obsolete.” If you haven’t noticed, newspapers – the ones still in circulation – are a shell of what they were 15 years ago. The number of mainstream magazines in the United States has declined 28 percent from its peak

in 2005.

The number of trade magazines being printed also has fallen drastically, thanks mostly to declining ad revenue fueled by a weak economy. But with challenges come opportunities, and while I’m sad to tell you that this will be the final print issue of Insight to arrive in your mailbox, I’m excited to share with you our plans going forward.

Beginning in January and bi-monthly thereafter, an electric version of Insight – very similar to what you’re reading today – will arrive in the inbox of every NC REALTOR®. So instead of four issues of the magazine in 2012, you’ll receive six, and they’ll include the feature stories and departmental columns you’ve told us you enjoy.

There’s more. In the other six months, you’ll receive a new e-publication, Insight Light, that’ll be designed to provide a quick and easy read on the latest news and trends in our business, the ever-achangin’ real estate industry. n

The

numbers tell the story.

20 In millions, the number of unique visitors worldwide (more than 5 million in the United States alone) who visited Google+ in its first three weeks.

60 Percent of real estate professionals who say they believe REO-related disputes will increase over the next two years.

77 Percent of real estate professionals who reported that closing short sale transactions is “difficult” or “extremely difficult.”

82 Percent of people who use some kind of social media on a regular basis.

$4,070 Nationally, the average cost for origination and title fees on a $200,000 mortgage.

Name: Location:

Firm: Local Association:

I’m originally from the Panama Canal Zone. My dad’s parents came to Panama in the early 1900s from Finland, and my grandfather worked as a dredge engineer on the Canal. My dad was in the Navy and then went back to Panama, where he met my mom, who was a Navy Lieutenant nurse stationed in the Canal. My older brother, sister and I were all raised there. It was a great place to grow up.

Jody Wainio Wilmington Buyer’s Choice Realty Wilmington Regional Association of REALTORS®

with his wife, two daughters and son. I taught their youngest – Freddy – how to drive a golf cart when he was eight years old. Soon after, he was driving – no speeding – down the fairway and the whole golf cart came off the ground. He really scared himself. He almost wanted to cry, and then he saw me laughing and was OK with it. We always tell that story, even now. They’re great kids. I wish they lived closer. I really miss them.

Growing up in the Panama Canal Zone, there was only one English speaking channel and it was only on part of the day, so there was very little TV watching. We spent most of our time playing football, playing “forts in the jungle,” riding bikes, and playing golf. We also learned Spanish at a very young age. We went to government schools because our parents were civil service employees and the schools were great. We got a great education in Panama.

When I was 16, we moved from the Panama Canal to Alabama and, boy, was that a culture change! In Panama, there was a lot of cultural diversity. We went to school with the Panamanians, and worked with them; we were all a big family. It was very different when we moved back to the United States. I also saw snow for the first time within two weeks of moving to Alabama.

I went to Louisiana State University for 2 1/2 years and played golf – go Tigers! Then I had an opportunity to come to the University of North Carolina at Wilmington for my last year and a half, where I got to play a lot more. It was fun to be a college athlete but very distracting. It was hard work. We got to travel some and we had practice every day. It was hard to do that and keep up a social life, not to mention my academics.

My sister and mother both live in Wilmington, which is great. My brother lives in Ponte Vedra Beach, Fla.,

My two golden retrievers are my kids. I have a 10-yearold dog, Holly, and a two-year-old named Chloe. Chloe is the instigator, but she has really kept Holly young and active and Holly has, in return, trained Chloe to be a good dog. When I got Chloe, I was not intending to get another dog. Two little puppies were left in someone’s backyard, and my friend called encouraging me to take one of them. I said, “We’ll get her here, and I’ll find her a home if I don’t keep her myself.” I had her for four days and that was that – I had to keep her. She’s here to stay.

In 2012, I’ll be the president of Homes4NC. There are two programs we want to implement. First, there is the Quality of Life program that will center around donations from REALTORS®. If they donate a certain amount, they will get a Quality of Life pin. We are also working on initiating projects where we ask for each region to work on a larger-scale affordable housing project and through that, we would do matching grants. I also want to focus on getting our name out there and becoming a more well-known organization.

Specifically Homes4NC and, in general, just giving back to the community means a lot to me because of how I was raised. When you live in a foreign country and you see the poverty, and you live right next to it because it wasn’t segregated in Panama like it is here, you learn how important it is to give and look past those things that aren’t important. You just want to help people. n

Jody and her family

How to Get Buyers Off the Fence

These Tips May Help Seal the Deal

By Michele Lerner

Hurricanes, earthquakes, a downgrade of U.S. creditworthiness and a rattled economy all are contributing to weak consumer confidence and hesitation among would-be homebuyers. One of the toughest aspects of a REALTOR®’s job these days is to counteract national media reports about the real estate market and the ascendancy of buyers to help them understand the reality of your local market. Many buyers today assume they have all the power in the real estate market and no reason to rush into making an offer on a home, yet REALTORS® report that homes priced right and in good condition are sometimes getting multiple offers.

Encouraging buyers to move off the fence and into homeownership can be challenging, says Carol Mazur, a real estate coach and owner of The Top Producer Group in Wilmington who recommends countering negative national news reports with positive information about your market and the impact of historically low interest rates.

Asa Fleming, a broker with Coldwell Banker Advantage in Raleigh, says, “Fear and uncertainty are stopping some buyers, so it is important for REALTORS® to demonstrate that this is an opportunistic time to buy a home. Interest rates are probably the lowest they will ever be, prices have plummeted and rents are starting to increase. I tell potential buyers that I would hate to see them caught by higher prices and higher interest rates if they wait too long.”

Demonstrate Math Skills

Diane Honeycutt, a REALTOR® with Team Honeycutt at Allen Tate in Concord, says it is important to put down on paper the difference in the monthly payments that a 1 or 2 percent change in interest rates can make.

“Buyers need to understand that not only will their payments go up, but they may not be able to qualify for the same loan amount if rates increase,” says Honeycutt. “Some buyers want to wait until they are sure that prices have bottomed out, but I tell them they can’t wait too long to pull the trigger because interest rates are likely to go up.”

There are several ways to explain the impact of an interest rate increase. For example, a one-point increase in the interest rate on a 30-year loan is the equivalent of a

Asa Fleming

Diane Honeycutt

9 percent price increase. On a $200,000 home, that would mean the payments would go up as much as if the price jumped $18,000.

If interest rates rise from 5 percent to 6.5 percent, the monthly principal and interest on a $200,000 loan would rise from $1,074 to $1,264. Borrowers would need to either have a higher income to qualify for the loan or purchase a less expensive home if they are unable to qualify for the higher payments.

Ryan Wall, a REALTOR® with Providence Realty in High Point, stresses the importance of having good relationships with lenders who can pre-approve buyers and explain various loan options.

“Lenders have a lot of programs that can help buyers, especially if they don’t have a lot of cash, so it’s important to be able to share that information with potential buyers who may think they can’t buy,” says Wall.

In addition to discussing the impact of interest rates, buyers need to be educated about the impact of price changes. “Some buyers will make an offer and then not follow up on a reasonable counteroffer because they expect to be able to get everything they want,” says Honeycutt. “But every $1,000 increase in the price only makes a difference of about $6 or $7. It’s important to put this into perspective, to ask the buyers if they like the home enough to spend another $12 or $18 a month on it.”

Know Your Market

Kim Endre, a sales manager with Outer Banks Blue Realty Services in Kitty Hawk, says the resort market has been particularly hard hit by economic woes, but she turns that around to show potential buyers that real estate can be a good investment.

“The fluctuations in the stock market have many people worried, so I explain that low interest rates, low prices and high inventory make real estate in our area a good investment,” says Endre. “We provide very specific information, including rental ratios and insurance quotes, so they know they can insure the property and can make rental income. We put everything on paper to help them see how the numbers will work, including the difference in payments at higher interest rates.”

Fleming says REALTORS® should be ready to talk about North Carolina as a destination state for many businesses. He predicts continued growth, particularly because of the many universities in the state that attract people who decide to stay. In addition, he says REALTORS® should keep themselves informed about prices and developments in their market.

Mazur says, “REALTORS® should read every article about real estate and the economy and think about what facts are relevant to their local market. It’s especially important to find information that can be positive for buyers and to communicate that to your customers. And, if prices go up even a little, you need to share that to create a sense of urgency among buyers.”

Wall spends a lot of time getting to know properties in his area so he can see which homes are undervalued. “I look at the homes that have sold within the past 60 days or less to see which homes were priced right and in good condition,” he says. “I also look for properties that are priced for less than that market value to see if they are a good buy for my customers.”

(continued on page 8)

Kim Endre

Discuss the Rent-Versus-Own Impact

Fleming says rents have been rising for the past four years, so potential buyers need to be educated on the fact that they can lock in their housing payments with a purchase.

“REALTORS® need to explain to renters that they are not getting anything other than a place to live with a rental, while they are making an investment by buying a home,” says Fleming. “They can build equity by paying down their mortgage, the property will appreciate, and they can deduct their mortgage interest payments and property taxes off their federal income taxes. They are also buying something they can pass on to their heirs.”

Affordability is another concern among buyers, who may not be aware that in some areas the cost of buying can be less expensive than renting.

“A lot of renters think they can’t afford to buy a home, so it’s important to share your knowledge with them about programs that can help them get into home with less cash,” says Wall. “People tend to forget that if they move from one rental to another they will need the first and last month’s rent and a security deposit, all of which can add up to almost what they need for a down payment in some cases.”

Wall also points out the value of purchasing a property at below market price, making a few minor improvements and creating equity by paying down the mortgage, versus renting.

Mazur says, “REALTORS® should explain that having a mortgage is a form of forced savings. Even if the property doesn’t go up a dime in value, you have an asset that you are paying off. Most people think of buying a home as spending $300,000 for a home, but in reality, if you make a down payment of $30,000, that’s all you’ve spent. The rest is often equivalent to what you would be paying in rent anyway.”

Take a Realistic Approach

“You have to educate buyers about what sellers are accepting and give them a feel for the local market and what is happening with prices,” says Honeycutt. “If they are looking at a $275,000 home but can only spend $200,000, they may be thinking they can get it for that price. It’s important to sit down with buyers and evaluate what they must have, what they want, and what they are willing to sacrifice to meet their price range.”

Wall emphasizes to his buyers the importance of buying an undervalued home now so that they will be able to sell it in a few years if needed. “Buyers today sometimes think they should be able to buy whatever they want, then they get discouraged if they can’t find the perfect home at a bargain price,” he says. “I ask them to decide what features are the most important to them, whether it is the size of the place, the location, or amenities like a swimming pool. If they can’t afford everything they want, I talk to them about the value of buying something else, especially if they can get a foreclosure or a home at a low price, building equity and then having something to sell in the future. If they wait, they won’t have the opportunity to build equity at all.”

Knowledge of the local market and the financial implications of homeownership, presented in a positive way, can provide a boost to consumer confidence and turn potential buyers into homeowners. n

Knowledge of the local market, and the financial implications of homeownership, can provide a boost to consumer confidence.

By Diane Greene Director of Community Outreach

Sponsors Crucial to Homes4NC Success

Affordable housing doesn’t come easy. It takes many dollars and volunteers to help just one family get into a safe and affordable home they can call their own. That’s why we are so grateful for the dedicated industry partners listed below who have sponsored our efforts.

Thanks to their generous contributions in 2011, Homes4NC was able to help many families throughout North Carolina with their housing needs. Here’s a list of our partners:

Workforce Housing

Program Signature Sponsor:

Homes4NC’s American Dream Auction saw lots of heated bidding with more than 100 items at excellent –some even bargain – prices bargain prices. Thanks to our many supporters, the auction raised approximately $11,000 for NC REALTORS®’ affordable housing efforts..

Pinnacle Partner:

Founders Circle: Bertha Pyne, Selective Homes, Greenville

Ambassadors:

Albemarle Area Association of REALTORS®

Asheville Board of REALTORS®

Brunswick County Association of REALTORS®

Carteret County Association of REALTORS®

Greater Chapel Hill Association of REALTORS®

Greensboro Regional REALTORS® Association

High Country Association of REALTORS®

Jacksonville Board of REALTORS®

Neuse River Region Association of REALTORS®

Outer Banks Association of REALTORS®

Washington-Beaufort Co. Board of REALTORS®

HPRAR’s Operation Ziploc Rolls On

The High Point Regional Association of REALTORS®’ Operation Ziploc program, despite several notable obstacles, enjoyed unprecedented success in this, its fifth year.

Approximately 800 bags filled with “treats for the troops” were collected in this year’s drive. “With the war conflict over the year, the fact that troops are returning home, and the continued economic recession, we’re thrilled with this year’s drive,” said Ed Terry, HPRAR’s executive director.

Previous years’ efforts had resulted in an average of 500 to 600 bags. Donations typically come from REALTORS®, churches, banks, youth groups, healthcare workers, a VFW Post and numerous individuals. Once accumulated, the bags are trucked to a collection point in Greenville and then shipped overseas. n

From left, HPRAR President Amy Hedgecock, Operation Ziploc Chair Deborah Davis, and Community Services Committee Chair Mark Lindsay survey some of the nearly 800 bags collected during 2011 Operation Ziploc.

Trevor Selected for NAR Leadership Academy

Linda Trevor, the 2011 president of the Raleigh Regional Association of REALTORS® and owner of Linda Trevor and Company in Cary, a RE/MAX United company, has been selected for the NAR Leadership Academy class of 2012.

Trevor, a licensed REALTOR® since 1998, is one of 17 REALTORS® nationwide selected for the fifth class of the program, which was founded in 2008 and is designed to nurture and inspire new leaders in the real estate industry.

Participants, who had to undergo an application and interview process conducted by the Academy Advisory Board, will experience a challenging six-month series of team-building exercises and workshops. The 2012 class is comprised of REALTORS® from 11 states and southern Brazil, marking the program’s first-ever international participant. n

Bailey Joins Association’s Legal Department

Kay Bailey has joined the NC REALTORS® staff as its legal assistant/legal programs coordinator. Among her duties, she’s charged with assisting General Counsel Will Martin and managing the day-to-day operations of the legal department.

Bailey previously worked for 11 years as a senior client services associate in the Greensboro office of Right Management, Inc. She partnered with both company and individual clients in researching career opportunities, targeting qualified candidates and gath-

ering company information critical to managing an effective career transition.

Prior to joining Right, she served five years as the office manager for an estate planning firm. In addition to her administrative role, she was a consultant.

Linda Trevor

A Maryland native, Bailey attended the Baltimore (Md.) Institute School of Business. n

Kay Bailey

On Oct. 1, zipForm® Available to Members

(Editor’s note: On Aug. 1, Realfast, Inc., the Frisco, Colorado-based real estate forms company owned by the NC Association of REALTORS®’ for-profit Service Corporation since 2003, was acquired by zipLogix of Fraser, Mich., creator of zipForm®. Beginning Oct. 1, NC REALTORS® members will be able to log in and access the offered zipForm® products on our website (www.ncrealtors.org). The below Q&A provides complete details.)

What is zipLogix and zipForm®?

zipLogix is the leading real estate software producer and has been for more than 20 years. zipLogix is the maker of zipForm®, the official and exclusive forms software of the National Association of REALTORS® and a REALTOR Benefits® Partner.

When do I switch from Realfast to zipForm®? What is the earliest date? What is the latest date?

The earliest date that NC REALTOR® members can begin using zipForm® is Oct. 1. Beginning that day, members can log in (as they normally would) at www.ncrealtors.org and begin using zipForm® through a link on our Forms & Contracts webpage. Members must switch to zipForm® no later than Dec. 31, 2011. After this date, Realfast software expires and members will not be able to retrieve past transactions.

What if I already have zipForm® and, thus, pay for it? What do I do?

NC REALTOR® members who purchased zipForm® 90 days prior to Oct. 1 will be given a prorated refund. If you qualify for a refund, contact zipLogix at 800-3839805.

Are forms still free if I am a member of the NC Association of REALTORS®?

Yes, zipForm® will be provided free of charge as benefit to all NC REALTOR® members. Similar to Realfast, members will have the option of using an online version (zipForm®6 Professional) and/or a desktop version (zipForm®6 Standard).

How is zipForm® going to handle the influx of so many new users?

With 15 full-time help-desk staff members, zipLogix is

well prepared to assist with any questions or concerns that NC REALTOR® members may have now or going forward. For help with technical questions, members can utilize zipLogix’s technical support on Monday through Friday from 8 a.m. to 8 p.m. (ET) by calling 586-840-0140.

How will zipForm® identify that I am a member of NCAR and, therefore, can access the software for free?

When you access zipForm® for the first time, you will enter your NRDS number, which will identify you as an NC REALTOR® member and allow you to access zipForm® free of charge.

I’m a Mac user. Is zipForm® compatible? Yes.

How will I move forms that I’m working on now into zipForm® software?

You can’t right now. But beginning Oct. 1, existing Realfast users are encouraged to move existing Realfast PDF documents to zipVault™ (a zipLogix product used for storage). To assist in this process beginning Oct. 1, you’ll be able to visit www.ziplogix.com and access a step-by-step guide. All Realfast forms must be moved to zipVault™ no later than Dec. 31, 2011.

With Realfast, there was a product key and registration number tied to my company. Will zipLogix provide the same service?

Actually, a better service! zipForm® is synched with the National Association of REALTORS® database, so any company and/or address changes you have will automatically change in zipForm® for both the desktop and online versions.

With Realfast, we were able to call NCAR and receive basic help on how to download and access Realfast. Will that be the case with zipForm®? What role will NCAR now play in helping members access forms from outside vendors?

For all questions regarding zipForm® software, call 586-840-0140. NC REALTORS® staff will continue to assist members with queries regarding the NC REALTORS® website. n

The luxurious Greenbrier was certainly dressed to impress and the many amenities and activities greatly enjoyed, but the approximate 500 NC REALTORS® who traveled to White Sulphur Springs, W.Va., on Sept. 10-13 for the Convention & Expo found enough hours in the day to balance work and play.

President Stephanie Walker presided over the festivities, which were highlighted by the announcement of M.L. Koebberling of High Point as REALTOR® of the Year, the first-ever Miss RPAC Beauty Pageant, which raised $24,571 for NC RPAC, and the Homes4NC silent auction, which raised more than $11,000 for our housing affordability foundation (see story on Page 9).

Attendees heard a state-of-the-industry report from NAR Chief Economist Lawrence Yun, and an inspirational message from keynote Aaron Davis. More than a dozen education sessions and seminars were held, and further benefit was derived from a handful of networking opportunities and activities, including a rockin’ dance party with The Nightlife Band.

In addition to Koebberling, honored were convention co-chair Deb Hays of Wilmington (Ben Ball Community Service Award) and past president Ronnie Thompson of Valdes (Hall of Fame Award). Recipients of the Regional Service Award included Lynn Harris of Wilmington (Region 2); Steve Cohen of Fayetteville (Region 3); Preston Edwards of Durham (Region 4); Bill Warmath of Greensboro (Region 5); George Bell of Winston-Salem (Region 6); Krista Sands of Gastonia (Region 7); and Aric Beals of Charlotte (Region 8).

The 2012 election winners also were announced:

> President-elect: Patrice Willetts of Wilmington Treasurer: Treasure Faircloth of Winston-Salem;

> NAR directors: Cindy Chandler of Charlotte and Bruce Williams of Calabash;

> Regional vice presidents: Stewart Couch of Avon; Susan Lacy of Wilmington; Kelly Marks of Greensboro; Krista Sands of Gastonia; Tony Smith of Charlotte; and Harriette Doggett of Raleigh;

> Finance & Budget Committee: Tomp Litchfield of Washington; Wilson Sherrill of Ocean Isle Beach; and Kent Wood of Charlotte;

> Issues Mobilization Committee: Mark Zimmerman of Chapel Hill;

> NCREEF directors: Julia Tucker Savage of Burlington; Kay Davis of Denver; Billy Case of Waynesville; and Donna Parker of Cary; and

> NCREEF at-large: Phillip Rector of Winston-Salem.

Please save the dates – Sept. 9-11, 2012 – for next year’s convention, which, for the first time, will be held jointly with South Carolina REALTORS® and in historic Savannah, Ga. n

By Kevin Brafford

Flanked by a photo of the World Trade Center during Sunday’s membership meeting, President Stephanie Walker led an emotional remembrance of the victims of 9-11.

NAR Chief Economist Lawrence Yun addressed attendees on the state of the real estate industry.

M.L. Koebberling of High Point received the REALTOR® of the Year award from the previous year’s honoree, Micki Fisher of Charlotte.

The opening night reception was moved indoors thanks to an unwelcomed guest – rain – but the festivities weren’t dampened.

The Miss RPAC Beauty Pageant was colorful, to say the least. David Jenkins of Region 4 wore the crown at the end of an eventful evening.

The expo lunch was held in a room that was part of The Greenbrier’s famous bunker.

(left) Walter Sanford was one of many topnotch educators who entertained and informed attendees.

(right) The expo was the place to be to see the latest products and services available to REALTORS®.

By Dan MacMillan Guest Columnist

Keys to Risk of Loss, Delivery of Possession

When should a prudent seller of real property deliver possession of real property to the buyer? The answer is simple if the agreement for purchase and sale is prepared on the standard forms residential and commercial purchase and sale agreements jointly approved by the NC Association of REALTORS® (NCAR) and the N.C. Bar Association (N.C. Bar). A seller should not deliver the keys to or possession of the real property until the deed has been recorded and the seller’s proceeds are available for disbursement from the closing attorney or settlement agent

The standard form residential contract, Offer to Purchase and Contract (NCAR/NCBar Standard Form 2T), adopted Jan. 1, 2011, and revised July 1, 2011, adopts the new definition “settlement” in Section 1(k) and redefines “closing” in Section 1 (m). Previous versions of the form defined “closing” as the date and time of recording of the Deed. By adopting the new definition “settlement,” the residential form now recognizes that the final step of “closing” does not take place in the closing attorney’s office, and that there is a gap between “settlement” and “closing” during which intervening events can seriously impact the rights of the parties. As with the older versions, “closing” has not been completed until the deed is recorded and the funds are available for disbursement to the seller. Section 12 of the residential form provides:

RISK OF LOSS: The risk of loss or damage by fire or other casualty prior to closing shall be upon seller. If the improvements on the property are destroyed or materially damaged prior to closing, buyer may terminate this contract by written notice delivered to seller or seller’s agent and the Earnest Money Deposit and any Due Diligence Fee shall be refunded to Buyer. In the event buyer does NOT elect to terminate this contract, buyer shall be entitled to receive, in addition to the property, any of seller’s insurance proceeds payable on account of the damage or destruction applicable to the property being purchased. Seller is advised not to cancel existing insurance on the property until after confirming recordation of the deed.

In the case of a casualty loss prior to closing, i.e. before the recording of the deed and the distribution of seller’s closing proceeds, the buyer has the right to terminate the contract and rescind the transaction

altogether. The buyer is also given the option, but not the obligation, to proceed with the closing in which case any of seller’s insurance proceeds are to be remitted by seller to buyer.

The standard form commercial contract, Agreement for Purchase and Sale of Real Property (Commercial) (NCAR Standard Form 580-T/NC Bar Form No. 13), defines “closing” in Section 1 (c) as “the date and time of recording the deed.” Section 9 provides: Until closing, the risk of loss or damage to the property, except as otherwise provided herein, shall be borne by seller. Section 11 provides: Possession shall be delivered at closing, unless otherwise agreed herein. Although Section 11 also provides: The closing shall be held at the office of the buyer’s attorney or at such other place as the parties hereto may mutually agree, it is clear from the definition of “closing” in Section 1 (c) that “closing” has not been completed until the deed is recorded.

It should be noted that North Carolina has enacted its version of the Uniform Vendor and Purchaser Act in Chapter 39 of the North Carolina Statutes. NCGS § 3939 provides that unless the contract expressly provides otherwise the risk of loss passes to the purchaser either upon transfer of legal title or transfer of possession of the property to the purchaser. Since, as mentioned above, both the commercial and residential contracts promulgated by NCAR/NCBar do, in fact, provide otherwise, the Act is not applicable to transactions closed pursuant to contracts on those forms. The risk of loss provisions are not altered even though most buyers come to settlement with an insurance policy made effective as of 12:01 a.m. the date of settlement.

Given the provisions in both the commercial and residential forms, it is foolhardy for a seller, or a seller’s agent, to cancel a seller’s insurance policy, or transfer the keys and possession to the buyer, until the deed is recorded and the seller receives the closing proceeds from the closing attorney. If a casualty loss occurs between what is defined in the residential form as “settlement” and the “closing” (i.e. before the deed is recorded), the seller, who has surrendered possession of the property to the buyer, runs the risk that the buyer may rescind the transaction. The longer the gap between settlement and closing, the greater the risk the seller faces by delivering possession and the keys at the settlement table. Real estate educators have been encouraged to stress the importance of these issues, and are reportedly doing so. Nevertheless, it is still a fairly common occurrence in many parts of this

state, particularly in residential transactions, for sellers to deliver the keys to, and possession of, the property at the closing/settlement table before the deed is recorded and the funds are disbursed. The closing attorney represents the buyer, and is generally not going to give legal advice to a seller.

If the seller allows the buyer to move in prior to closing, and the parties enter into a Buyer Possession

Before Closing Agreement (NCAR Form 2A-7-T/NCBar

Form 2A-7), it is important to remember that paragraph 8 of that form continues to place the risk of loss on the seller until closing. Sellers executing a Buyer Possession

Before Closing Agreement should be especially careful to maintain insurance in place until closing is completed. Both paragraph 8 and the second warning at the top of the form caution the seller to check with an insurance professional to determine what type of insurance coverage is necessary. Homeowners’ insurance policies are designed for the owner occupant. The seller’s insurance professional may advise replacing homeowners’ coverage with a dwelling fire policy. If closing does not

occur as scheduled, and the prospective buyer remains in possession for a prolonged period of time, or the property becomes vacant, it is especially important to obtain and maintain the correct type of coverage.

A buyer expecting possession at the settlement should realize that the seller is entitled, and is well advised, to withhold possession and delivery of the keys until the deed is recorded and the closing proceeds are distributed. Therefore, if a buyer needs possession on a date certain, it is wise for the buyer and the buyer’s agent to schedule the settlement for a date and time (preferably not Friday afternoon) that should allow enough time for the deed to be recorded in order to meet the buyer’s needs. n

Douglas P. (Dan) MacMillan is a partner in the Charlotte law firm of Burris, MacMillan, Pierce, McCutcheon & Burris, PLLC. He is a Board Certified Specialist in real property law: residential, business, commercial and industrial transactions.

Insurance/Financial

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Visit www.commercial.sears.com/ncar or call 800-215-3979 to find your local representative and more information about the program.

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40-50% discount off Showroom retail and up to 70% discount on products selected in the Outlet Center. Also receive a 5% rebate card towards your next purchase that can be applied towards the purchase of any in-stock merchandise. *Offer extends to member clients.

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Rising Star Award Winners

Meet the 2011 Class of Rising Stars – a bright, energetic group full of potential and great ideas. Their backgrounds are as varied as the communities they hail from. But they do share one common trait: They’ve been in the business of real estate for less than five years and are already taking the industry by storm. We congratulate them for their success!

Nolan Formalarie

Plantation Properties

Brunswick County Association of REALTORS®

Since becoming a REALTOR® in 2007, Formalarie has consistently ranked among the top two in sales at Plantation Properties. What’s more, Formalarie’s low key approach and success, measured by an 80 percent referral business, is attributable to the strong relationships he builds with his clients. Hailed as being enthusiastic, dedicated and a hard worker, Formalarie has already made quite the impression on his local board. When he’s not focused on real estate, Formalarie is active in Business After Hours, Wilmington Young Professionals, and he enjoys kayaking.

Alison Spradley

Spradley Realty

High Point Regional Association of REALTORS®

With approximately four years’ experience under her belt, Spradley has done a lot in a short amount of time. Perhaps most notably, Spradley was involved in the creation of the High Point Regional Association of REALTORS® Young Professionals Network (YPN), the second YPN for REALTORS® created in North Carolina. Spradley has also served her local association in numerous other posts on the Board of Directors, Governmental Affairs Committee, and Social Media Task Force. When she’s not working or volunteering for her local association, Spradley serves as chair for the Council of Ministries and Evangelism Committees.

Tami Brock

Hardy Associates

Greenville-Pitt Association of REALTORS®

When Brock became a REALTOR® in August 2008, the Greenville-Pitt Association of REALTORS® benefit-

ed instantaneously. She has already chaired her local board’s Community Development Committee and is presently serving on the MLS Committee. For Brock, volunteerism is a family affair: In 2012, her mother-inlaw, Judy Hardy, will serve as the Greenville-Pitt Association of REALTORS® president.

Amy Holcomb

Intracoastal Realty Corp.

Wilmington Regional Association of REALTORS®

A quick glance at Holcomb’s volunteer involvement would lead one to believe she’s been in the business a long time. With just under five years’ experience as a REALTOR®, Holcomb has already served on five committees on the local level and participated in more than 10 events through her local association. Described as a “broker extraordinaire,” Holcomb is most notably serving a threeyear term on WRAR’s Board of Directors. When she’s not working or volunteering with her local board, Holcomb is involved in the community, serving on the Children’s Council for Grace United Methodist Church and in the Screen Actors’ Guild.

Boston Reid

Lead 2 Real Estate Group

Charlotte Regional REALTOR® Association

A former NASCAR driver, Reid’s transition into real estate was anything but slow. After becoming a REALTOR® in April 2009, he closed 33 transactions in less than a year and a half. But his busy work schedule hasn’t kept him from volunteering with the Charlotte Regional REALTOR® Association, where he has served on the Government Affairs Committee, Publications and Communications Advisory Group, and the Housing Opportunity Foundation’s Community Grants Panel. In his spare time, Reid volunteers at Christ Community Church and also co-anchors the radio-based program “Your Real Estate Today,” in which he answers guests’ questions about real estate.

Nancy Roberts

Key Property Associates L.L.C.

Burke County Board of REALTORS®

In just under five years, Roberts has accomplished plenty. Considered a key member of the Burke County Board of REALTORS®, she already has served three years on the MLS Board and as chair for the External Affairs Committee. Roberts has also organized her local association’s Red Cross blood drives and school supply drive. And although she’s busy, she has still made time for education. Roberts has already earned her GRI designation and is presently working on receiving her CRS. Roberts also has been involved with numerous community organizations, including Relay for Life.

Liz Schoeneberger

Fonville Morisey Realty

Durham Regional Association of REALTORS®

Despite having less than three years of experience, Schoeneberger has proven she’s committed to her community and local association. Already, Schoeneberger has served on the Durham Public Schools Committee and the Community Service Committee. Schoeneberger has been exceptionally helpful with the Durham Regional Association of REALTORS®’ Annual Home Buyers Fair, an event designed to help many first-time homebuyers attain the dream of homeownership.

The Rising Star Award

Keller Williams

Greensboro Regional REALTORS® Association

Known as the “first responder” in her Keller Williams office because of her eagerness to lend a helping hand, Betts has already made a name for herself on the local level. With approximately five years’ experience, she has served on the REALTOR® Community Service Committee and is active with the REALTOR® Commercial Alliance. In her office, Betts has received the “Red Shoe Award,” which recognizes an agent for selflessness in the office and community. When she’s not busy helping her firm and local board, Betts is active in her church and is a member of the Sunrise Toastmasters and Toastmasters International, DTM. n

Maria Randolph Betts

By Will Martin General Counsel

On Due Diligence and the Time of Day

Dear Forms Guy: I’m working with a buyer who wants to make an offer on a property using the Offer to Purchase and Contract (form 2-T). We want to write up an offer that includes a Due Diligence Fee, no Initial Earnest Money Deposit, and an Additional Earnest Money Deposit that would be payable no later than one day following the end of the Due Diligence Period. I have a few questions I’d like to run by you about the timing on paying those fees. Is that okay?

Sincerely, Spanky

Dear Spanky: Go for it. Sincerely, Forms Guy

Spanky: Great. My first question is should the Due Diligence Fee be given to the listing agent when I present the offer?

Forms Guy: You could deliver the Due Diligence Fee with the offer, but you don’t have to. The contract states that any Due Diligence Fee must be “made payable to Seller by the Effective Date” (see paragraph 1(d)).

Spanky: But if the seller accepts my client’s offer and the listing agent notifies me of that fact, is there even a contract if the Due Diligence Fee hasn’t been delivered?

Forms Guy: I think it’s pretty clear from the wording of the form that a contract would be created when the listing agent notifies you that the seller has signed the buyer’s offer, even though at that moment the Due Diligence Fee has not been delivered. There’s a mechanism at the end of paragraph 4 that permits the seller to terminate the contract following written notice to the buyer if the Due Diligence Fee or the Initial Earnest Money Deposit hasn’t been delivered by its due date. In my view, the wording of that mechanism clearly indicates an understanding by the parties that a contract does exist, subject to the seller’s right to terminate it if the buyer doesn’t deliver the Due Diligence Fee following notice from the seller. Of course, a prudent buyer’s agent should promptly deliver the Due Diligence Fee upon notification that the seller has accepted the buyer’s offer.

Spanky: If I do deliver the Due Diligence Fee with the offer, can the listing agent give it to the seller even before the seller accepts the offer?

Forms Guy: It’s certainly possible that could happen.

The N.C. Real Estate Commission’s rule on the handling and accounting of funds provides that if a check from the buyer made payable to the seller is delivered to a real estate agent, the agent must either deliver it to the seller or return it to the buyer according to the instructions of the buyer. For that reason, I would suggest that any Due Diligence Fee delivered with an offer be accompanied by written instructions to the listing agent authorizing and directing the listing agent to deliver the Due Diligence Fee to the seller only if and when the buyer and seller enter into a contract. It doesn’t become the seller’s property unless and until a contract has been created, but once the seller has it in his or her possession, it may be tough to get it back.

Spanky: Understood. Moving on to the Earnest Money Deposit, can the buyer and seller enter into a binding contract without the buyer making an Initial Earnest Money Deposit?

Forms Guy: Yes, assuming of course the seller is willing to accept an offer that doesn’t include an Initial Earnest Money Deposit.

Spanky: As I said earlier, the buyer would like to tie the payment of an Additional Earnest Money Deposit to the expiration of the Due Diligence Period, so that the buyer won’t have to pay the deposit if the buyer terminates the contract during the Due Diligence Period. Is that okay?

Forms Guy: Yes.

Spanky: How would you recommend I fill in the blank for the time that the Additional Earnest Money has to be delivered?

Forms Guy: Assuming the Additional Earnest Money Deposit is to be delivered no more than one day after the end of the Due Diligence Period, and assuming you use a specific date for the end of the Due Diligence Period, you would put the next day’s date in the blank. For instance, if the Due Diligence Period ends on Oct. 15, you would insert “5:00 p.m. on Oct. 16” in the blank for the delivery date of the Additional Earnest Money Deposit. On the other hand, if the Due Diligence Period is described as a specific number of days following the effective date, you would use the same formula for describing the delivery period of the Additional Earnest Money Deposit, increasing the number of days by one. For instance, if the Due Diligence Period is to end at

New in 2012: Legal Services Program

The NC Association of REALTORS® is pleased to announce a new initiative for 2012 – the Legal Services Program. For details, see Page 24.

5:00 p.m. on “the 14th day following the Effective Date,” you would insert “5:00 p.m. on the 15th day following the Effective Date.”

Spanky: Why the specific time of day?

Forms Guy: It’s not required, but if you don’t put in a time of day, I believe the contract would be interpreted to permit delivery of the Additional Earnest Money Deposit up until midnight of that day. When possible, avoiding the potential late-night performance of a contractual obligation is desirable in my opinion.

Spanky: Would it be a problem if I were to run into a snag getting the Additional Earnest Money to the listing agent by the time of day we agree on?

Forms Guy: Yes, that would potentially be a big problem. Unlike tardy delivery of the Due Diligence Fee or the Initial Earnest Money Deposit, the contract doesn’t require the seller to give the buyer one banking day’s notice before terminating the contract. Time is “of the essence” regarding delivery of the Additional Earnest Money Deposit. Although the contract wouldn’t end automatically, the seller could terminate it immediately following the end of the permitted delivery period. That may not happen, but believe me, Spanky, I’ve seen quite a few situations where the seller has jumped at an opportunity to terminate a contract with a buyer, usually because there’s a second buyer waiting in the wings who is willing to buy the property on terms more favorable to the seller.

Spanky: Even if I was five minutes late?

Forms Guy: Yes.

Spanky: I can’t believe a seller would do that!

Forms Guy: In case you haven’t noticed, there are a lot

of rascals out there, Spanky. And forgive me for saying so, but what I can’t believe is that you would cut it so close on delivering the deposit before the deadline.

Spanky: Okay, okay. Any more words of wisdom?

Forms Guy: Yes, one more thing. Pay close attention to the fact that the Additional Earnest Money Deposit, unlike the Due Diligence Fee or the Initial Earnest Money Deposit, must be payable in cash or immediately available funds. If you present a personal check for the buyer for the Additional Earnest Money Deposit, the seller could refuse to accept it and then terminate the contract if the buyer can’t get you cash or immediately available funds before the payment deadline.

Spanky: Thanks, Forms Guy. Gotta go!

Forms Guy: You’re welcome, Spanky. Give my regards to the Gang. n

By Julie C. Woodson Director of Political Communications

Brokers Needed to Lead Important Program

There’s an exciting program that the NC Association of REALTORS® needs to grow and strengthen to increase our effectiveness with Congress. It’s the Broker Involvement Program (BIP), which is a grassroots initiative started by NAR that provides broker-owners with a quick and effective way to rally their agents and send a clear, unified voice to North Carolina’s congressional delegation regarding issues impacting the real estate industry.

Why is the program so important? Response rates on Calls for Action (CFAs) are significantly higher when agents receive their messages directly from their brokers because they know it’s information that’s important and that they can trust. In a recent NAR call for action, nearly 42 percent of all responses nationwide were from agents in the BIP.

The BIP offers brokers and their agents:

> An effective approach to increase REALTOR® influence on important legislation and help shape legislation that can affect your bottom line.

> A way to stay abreast of the legislative impact, the changes and final outcomes for each CFA.

> A program that requires only a small amount of your time with no costs involved.

> Tracking by NAR of the CFA response rates within a company so the broker can see their effectiveness.

Direct contact with elected leaders is vital. For example, during the 2007 Stop the NC Home Tax Campaign, REALTORS® generated more than 50,000 e-mails to members of the NC General Assembly using targeted CFAs. At the national level, during the Homebuyer Tax Credit Call For Action last year, more than 21 percent of our members responded and contacted their representatives in Congress.

“While the BIP isn’t the only reason for these increases, it clearly has had a tremendous impact on REALTORS®’ participation in Calls for Action and, therefore, the legislative process” says NC REALTORS® President Stephanie Walker. “Passage of the Homebuyer Tax Credit legislation was critical to our industry, and Congress heard that message loud and clear, thanks to our united voice.”

When brokers participate in the BIP, their agents will receive the Call for Action from them – their broker – rather than from NAR. “Agents will be more likely to respond and increase overall participation rates and the number of congressional contacts,” Walker says.

To register, visit www.realtoractioncenter.com, click

on the broker enrollment section and complete a short form.

Key Issue Still Percolating

NC REALTORS® has worked closely with members in the mountain areas of our state to follow and address issues that include landslide hazards maps and landslide hazard disclosure requirements.

Recently, there were questions and conflicting information about the N.C. Real Estate Commission’s (NCREC) position on these issues. In a letter written by Tom Miller, legal counsel for the NCREC, he states the NCREC has “not issued any ruling concerning slide hazards or slide hazard maps in Macon or any other county.” Further, he states that “we decline at the present time to declare that, as a minimum standard of practice, a broker must investigate slide hazards or warn his/her clients of the potential for such hazards in the absence of the broker’s actual knowledge of such hazards or the existence of information, condition, or other ‘red flags’ which a reasonable inspection of the property by a person trained as a broker would discover.”

The issue of regulating mountain development and requiring property disclosure obligations for mountain properties is complex. REALTORS® already adhere to a strict Code of Ethics and have always been proponents of property disclosure requirements that protect consumers. There have also been concerns about whether the hazards maps are complete and able to be easily read and interpreted.

In his letter, Miller makes these points: The mere existence of the landslide hazard maps is not in itself a material fact that must be disclosed; the NCREC does not require brokers to investigate slide hazards and warn clients of the potential for such hazards in absence of actual knowledge or the existence of circumstances that would lead a reasonably prudent broker to conclude that there is a potential hazard; and the N.C. courts have ruled that an agent is under no duty to disclose unless they actually knew or should have known about a hazard on a specific piece of property.

The issues impacting this disclosure are still a priority for NCAR. “We will continue to work with REALTORS® in the mountain regions to ensure that rules and laws aren’t enacted that would negatively impact housing affordability and create an increased liability for our members in those areas,” says Government Affairs Director Cady Thomas. “The adequate enforcement of existing rules and regulations already goes a long way toward protecting consumers.” n

Thieves Target Foreclosed Properties

Thieves are continuing to prey on foreclosed properties, removing copper, appliances and other fixtures, and leaving behind a mess for those who have to sell it. The Memphis Area Association of REALTORS® recently warned its members of scams involving thieves who remove “For Sale” signs from yards and then bring a truck into the garage of the home, making it appear as if they are moving in. They then remove such items as AC systems, kitchen appliances, light and plumbing fixtures, and the copper from walls. Copper has become even more of a target, with copper prices rising by more than $1 per pound in the past year.

An Unusual Request: Housing for a Dinosaur

A Canadian man who has been unable to buy a home in the pricey housing market of Vancouver, British Columbia, has another idea for attaining home ownership, but it involves … dressing up as a dinosaur. The man recently posted an unusual offer over Craigslist, targeting his message to the rich who may have some spare homes lying around or paid-off rental properties – or those who’ve just always wanted a “personal dinosaur.” The man wrote in a Craigslist ad: “In exchange for one of your properties, I will be your personal dinosaur for one year. I will be at your beck and call, 24 hours a day, wearing a dinosaur costume. The type of dinosaur is negotiable.”

Android Users Vulnerable to Attacks

Mobile security experts say they’ve identified more than a dozen popular Android apps that can make your phone a target for hackers. The threats range from hackers reading your incoming and outgoing messages, tracking your location, running up charges via SMS messages, and even monitoring your call history. A report from antivirus company Kaspersky also identified 70 types of Android malware, which ranged from viruses like “HippoSMS” (causing phones to text premium numbers that increase charges) to “Golddream.A,” which can record phone calls and upload conversations to remote servers controlled by hackers. The viruses can be embedded into applications you can download. Experts say it is occurring because developers are failing to follow security guidelines.

Detroit Offers Incentives to Get Police Officers Moving

In an effort to revitalize hard-hit areas of Detroit, the city is partnering with financial institutions to offer grants to help police officers and city workers who live outside the city buy homes in Detroit neighborhoods. JPMorgan Chase Foundation announced recently that it will offer a $1 million grant to aid 70 police officers and city workers in a down payment on vacant homes they purchase in the city. The first 10 officers who purchase a vacant home will get $25,000 each, and another 60 officers and city workers can get up to $15,000 each.

Google’s Purchase of Motorola Unit a ‘Game-Changer’ Analysts are calling Google’s recent announcement that it plans to buy Motorola Mobility a “game-changer” for its Android smartphone market, and a move that puts it in steeper competition against rival Apple. The Motorola unit purchase allows Google to “create a range of products that enable very rich, multi-device experiences in the same way that Apple does across iPhone, iPad and Apple TV,” Forrester Research analyst Charles Golvin told USA Today. Analysts say that the Motorola deal will finally allow Google to gain more control over some of its phones, at least the ones made by Motorola Mobility that have the Android name. This also could help the Android phones be more attractive to app developers, who have reported challenges in creating software for different companies’ Android phones.

Nebraska Agent Robbed, Beaten at Open House

Police have arrested two teenagers in connection with an alleged robbery and beating of a real estate professional who was holding an open house at a home in Lincoln, Neb., in early August. According to police reports, two robbers entered the open house and threatened the real estate professional with a weapon that resembled a homemade knife or a screwdriver wrapped in a cloth. The robbers reportedly demanded the woman’s purse, wedding ring, and car keys. When she refused to hand over the items, they punched her in the face and forced her into a bathroom. The woman was able to escape and call for help.

Florida Authorities Charge 27 in Mortgage Scams

Authorities charged 27 South Florida residents in a series of mortgage fraud schemes that involved $30 million in bad loans. The various mortgage fraud schemes involved cases of inflated home values on mortgage applications, loan applications that contained false information, funds illegally obtained through straw buyers, as well as arson, authorities say. South Florida has become the nation’s top market for mortgage loan fraud and has led the nation in mortgage fraud for the past five years, according to research by LexisNexis Mortgage Asset Research Institute.

Mansion May Fetch Record Amount at Auction

A Malibu, Calif., mansion that once was on the market for $65 million will soon hit the auction block with the bidding starting at $22 million, which could mark a new record. This is a less traditional route for selling a luxury home that is neither in foreclosure or default, but the buyer has been trying to sell the property since 2008 and is motivated to finally get it sold. The home will be sold in a reserve auction, which means a financial minimum must be met for the property to be sold. Bidders will be vetted prior to the auction and must pay $150,000 to receive a bidder’s title. n

By Andrea Bushnell Executive Vice President

New Legal Services Program to be Offered

Starting Jan. 1, NC REALTORS’® members will be able to participate in an exciting, newly expanded Legal Services Program. This new program will be available to members choosing to pay a small voluntary annual subscription fee. Below is a summary of the program’s benefits.

First, you will be able to make unlimited calls every weekday to the Hotline. Your call will be handled by one of NCAR’s lawyers, who collectively have more than 20 years’ experience representing REALTORS® on a daily basis. They’re not just any lawyers: they’re lawyers who know and understand the legal issues you face, plus they are lawyers you may already know – Will Martin and Bill Gifford.

Will and Bill will handle a wide range of topics, including questions about forms, contracts, disclosure, agency, real estate licensing law, REALTOR® Code of Ethics, commission disputes, fair housing and landlord/tenant law, just to name a few.

Additionally, you will have exclusive access to the very popular Q&As that NCAR’s lawyers write weekly based on hotline calls they receive. Plus, NCAR is launching a new subscriber-only blog that will allow you to follow up with comments and questions about the weekly Q&As and view comments and questions posted by other subscribers. You’ll also be able to search all the Q&As in a new online archive.

Finally, as a subscriber, you’ll have exclusive access to an annual legal seminar that will be put on by NCAR’s lawyers. The cost alone of a legal seminar that you would purchase separately from this Legal Services Program would rival paying for your entire annual subscription.

The cost of the Legal Services Program is only $125 per calendar year. However, if you sign up on or before Nov. 30, you’ll receive a special discounted annual rate of $99! (Members who sign up on anytime on or after July 1 of next year will pay a prorated fee of $62.50.)

Here’s an example of the weekly Q&A you will receive:

Question: I have a listing on a condo in a 100-unit condo complex. Does the owner have to complete a Residential Property Disclosure Statement? It seems like it should be required, but the instructions for completing the Disclosure Statement state that it’s only required for owners of single-family homes and buildings with up to four dwelling units.

Answer: Your owner is required to complete a Residential Property Disclosure Statement. The important fact is how many units are being sold, not how many units are in the complex. Although we agree that the wording of the first sentence in the “Instructions to Property Owners” is somewhat awkward, the Residential Property Disclosure Act specifically applies to sales of residential real property “consisting of not less than one nor more than four dwelling units.” Since your seller is selling a single dwelling unit, the Act applies. Conversely, if your owner owned five condos in the complex and sold them together, the Act would not apply.

I hope that you will be as excited as I am about this new, expanded Legal Services Program. For more information, contact Kay Bailey at 336-808-4235 or kbailey@ncrealtors.org. n Contact

Administrative Andrea Bushnel Executive Vice President 336-808-4220

Anne Shoemaker Chief Operating Officer 336-808-4229

Bryan Jenkins Chief Financial Officer 336-294-3112

Denise Daly Membership Records Coordinator/Bookkeeper 336-808-4223

Diane Greene Director of Community Outreach 336-808-4234

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

Kristin Miller Partners Program Manager 336-217-1047

Scott Bailey Business Development Manager 336-808-4228

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

Samantha Ashburn Electronic Communications Manager 336-808-4226

Barbara West Communications Specialist 336-808-4227

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

Professional Development Pam Haire Director of Professional Development 336-808-4237

Ellie Edwards Professional Development Assistant Director 336-808-4231

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 Meeting Planner 336-217-1049