Insight | Spring 2015 by NC REALTORS®

VOL 94 NO 1 | SPRING 2015

2015 President Tony Smith

2015 INAUGURAL RECAP DRINK WINE FOR HOMES4NC NC RPAC GIVES THANKS

Building the NC ® REALTOR Nation 2015 LEADERSHIP ACADEMY Meet this year’s promising class

MAIN STREET PERSPECTIVE Senator Rick Gunn works hard to kick start a stronger NC economy

NCREALTORS.ORG

SPRING 2015

Contents 8

DEPARTMENTS

4 President’s Message

5 Numbers to Note 15

6 Calendar

FEATURES

7 8 12 15

Celebrations in the Queen City The 2015 Inaugural Meetings & Gala Recap.

Building the NC REALTOR® Nation With a business-savvy mind and the desire to give back, 2015 NCAR President Tony Smith looks forward to leading NC REALTORS® this year.

Leadership Academy Meet a promising new group of NC REALTOR® leaders.

Main Street Perspective Fellow REALTOR® Senator Rick Gunn works hard to kick start a stronger NC economy.

Inside NC REALTORS® Homes4NC, Election Info, Awards and Recognition, Staff Developments and Partner Update

22 Political Action Committee NC RPAC Gives Thanks

25 Commercial Connection Lease Accounting Standards: Changes on the Horizon

26 Government Affairs Advocacy 2015: The Power of the NC REALTOR® Nation

29 Forms Guy ncrealtors.org • INSIGHT 3

President’s MESSAGE

It is no doubt that with 33,000 members across the state, the North Carolina Association of REALTORS® is a powerhouse. But, what really makes us a force is simple — it is our engaged and active members. REALTORS® who are committed to work together for the betterment of our industry and our communities. As I take over the helm of NCAR this year, I want to encourage all of you to play an active part in “Building the NC REALTOR® Nation.” Your association is continually striving to develop the tools to not only help you succeed in your business, but to help protect most North Carolinians’ greatest asset, their home. We need to ensure our grassroots efforts through the NC Homeowners Alliance are being heard. I challenge each of you to encourage the new homeowners you work with to sign up with the NC Homeowners Alliance. With homeownership comes great responsibility. We need to answer those Calls For Action. When issues arise at the General Assembly that affect homeownership and the ability to sell your home, we all need to make it our responsibility to inform the public. At both the state and federal level, everyone is looking for a way to raise revenue. Real estate is a target. It is critical that we remain unified in support of our industry and our livelihood. I look forward to our engagement this year and the wonderful opportunity to represent you as President of the North Carolina Association of REALTORS®. We have leadership that will listen to membership, and membership that will hopefully return the favor. Let’s work hard to grow our involvement. Let’s give back to the industry that’s given so much to us. Let’s build the NC REALTOR® Nation.

Insight Magazine, Volume 94, Issue 1 President Tony Smith

Treasurer Treasure Faircloth

President-Elect Kim Dawson

Immediate Past President Tomp Litchfield

REGIONAL VICE PRESIDENTS Region 1: David Perrot, Kill Devil Hills; Region 2: Jody Wainio, Wilmington; Region 3: Bruce Gates, Goldsboro; Region 4: Greg Payne, Durham; Region 5: Amy Hedgecock, High Point; Region 6: Phil Rector, WinstonSalem; Region 7: Marsha Jordan, Lincolnton; Region 8: Alison Royal-Combs, Leslie Fisher, Charlotte; Region 9: David Wall, Asheville; Region 10: Linda Trevor, Jose Serrano, Raleigh; At-Large: Stephanie Walker

Chief Executive Officer Andrea Bushnell Editor Blair Wilburn Assistant Editor/Designer Mckenzie Hamrick Contributors Nicole Arnold Ellie Edwards Will Martin Kristin Miller

Shanell Smaw Stephanie Spear Erin Stackley

For Advertising information, contact Mike Buescher at 336-808-4229 or mbuescher@ncrealtors.org. Insight (USPS 017602) is published four times a year during the months of March, June, September and December by the North Carolina Association of REALTORS®, 4511 Weybridge Lane, Greensboro, NC 27407. Member subscriptions of $2.89 are covered by annual membership dues. Periodicals postage paid at Greensboro, NC and additional mailing offices. POSTMASTER: Send address changes to Insight Magazine; 4511 Weybridge Lane, Greensboro, NC 27407.

Tony Smith 2015 President

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Articles which appear in Insight are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the North Carolina Association of REALTORS®. Advertising of a product or service does not imply endorsement, unless specifically stated. Prefer to read Insight electronically? To opt-out of paper copy mailings, email ncar@ncrealtors.org with a subject line of “Insight opt-out.” Cover photo by Robin Cooper Photography.

4511 Weybridge Lane, Greensboro, NC 27407 Phone: (336) 294-1415, Toll Free: (800) 443-9956

ncrealtors.org

4 INSIGHT • Spring 2015

SOMETHING TO TALK ABOUT

THE LEGAL HOTLINE Did you know as a member of NCAR that you now have free, unlimited access to the NCAR Legal Hotline? The Hotline is intended to provide general information in response to legallyrelated questions of concern to members and the real estate industry overall. Take a look at some features of this key member benefit.

REALTORS® who attended the 2015 Inaugural Gala and Meetings in Charlotte. (pg 7) MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

unlimited calls every weekday Dial

years experience representing REALTORS® on a daily basis

800-443-9956 and ask for a NCAR lawyer

Email is also an option

ncarlegal@ncrealtors.org

Call to discuss...

contracts

commission disputes

REALTOR® Code of Ethics

agency real estate licensing law

Calls are typically taken or returned after 2 PM

disclosure fair housing

forms

350 The number of NC

landlord/ tenant law

QA +

You'll also have access to the very popular Q&As that NCAR's lawyers write every week based on hotline calls they receive.

1983 The year NCAR

President Tony Smith got into the real estate business. (pg 9)

4 The number of

years REALTOR®Senator Rick Gunn has served, fighting to bolster the NC economy. (pg 15)

7 The number of

wines you can taste at a Wines for Humanity event to benefit Homes4NC. (pg 18)

250,000 The amount of people reached through social media by the NC Homeowners Alliance. (pg 27)

ncrealtors.org • INSIGHT 5

SOMETHING TO TALK ABOUT

Calendar Mar. 10-11 Leadership Academy Pine Knoll Shores

Mar. 11 Webinar Wednesday: DocuSign Advanced In this class NC REALTOR® Mark Saunders shows you how to utilize Docusign’s most advanced features.

Mar. 13-16 Joint NAR/CREA AE Institute, Vancouver, British Columbia

Mar. 19 XPLODE Greensboro Greensboro Marriott Downtown Get ready for a full-day conference packed with all the critical tech/marketing updates you need to drive your business forward in 2015.

Find out more at ncrealtors.org

Mar. 24 NC REALTORS® Broker Summit The Proximity Hotel, Greensboro Join a blue-ribbon lineup of speakers as they provide compelling insight of a future economy dependent on real estate.

Apr. 8 Webinar Wednesday: How does state legislation affect your bottom line? Want to hear how potential legislation can impact your business and your livelihood? Find out what’s happening from the NCAR Government Affairs team.

Apr. 20-22 2015 NCAR Legislative Meetings Sheraton Raleigh Hotel Attend the 2015 NCAR Legislative Meetings, and specifically Legislative Day on April 22, when we visit legislators and discuss issues significant to REALTORS®.

Find out more at ncrealtors.org

Apr. 30 - May 2 Region 4 Retreat, Wilmington

May 5-6 Leadership Academy Blowing Rock

May 11-16 NAR Midyear Legislative Meetings & Trade Expo Washington, DC

May 13 Webinar Wednesday: The demise of the HUD-1: will you be ready August 1st? Learn about new regulations and practices that are going to have a big impact on real estate closings and the way real estate agents and closing attorneys work together.

INAUGURAL CELEBRATIONS IN THE

Queen City

More than 350 NC REALTORS® gathered in Charlotte in January to celebrate the formal installation of Tony Smith as the state association’s 2015 president. Here are a few highlights of the event: 1) 2015 NCAR President Tony Smith presents the NC REALTOR® audience with his mission to build the NC REALTOR® nation. 2) Emcee and REALTOR® Bill Gallagher and Immediate Past President Tomp Litchfield share a laugh from the stage. 3) REALTORS® Renee King Smith, Steven Norris and Association Executive Tessa Hultz catch up at the President’s Reception. 4) Smith is joined on stage by his wife Nancy and grandchildren Reagan and Caden as he is sworn in by 2014 NAR President Steve Brown. 5) REALTORS® Dave Costner, Sandra O’Connor and Bruce Willams pose for a quick photo. 6) Smith and Brown share a few words after the installation. Photos by Robin Cooper Photography ncrealtors.org • INSIGHT 7

“We are all part of the REALTOR® Nation. We’re not exclusive, there is nothing exclusive about it. The REALTOR® Nation is inclusive. It involves us all – our members, our associations and our communities.” TONY SMITH, 2015 NCAR PRESIDENT

8 INSIGHT • Spring 2015

Building the

NC REALTOR® Nation

On January 22, Tony Smith took the helm as the NC Association of REALTORS®’ 2015 president. With a business-savvy mind and the desire to give back to the industry, Tony looks forward to leading NC REALTORS® in the coming year as we work to “Build the NC REALTOR® Nation.”

Photos by Robin Cooper Photography

BY BLAIR WILBURN

Tony Smith was born in Florida, but has called Charlotte home since 1975. His father, Earl, was a Kmart manager in retail sales, so every two to three years the family — Earl, his wife Wanda, Tony and his three siblings — would move for Earl’s work. By the time they settled in Charlotte, Tony had lived in 11 states — some states even twice. It was in Charlotte where Tony would get his start in the real estate business alongside his mother in 1983. A few years later, he began working on the building side of things. Although it was a career he enjoyed, it later proved to be costly as a result of the savings and loan crisis during that time. In 1987, Tony’s mother founded Wanda Smith & Associates in Charlotte and became known as one of the area’s top producers. At the time, Tony was still building homes, but that all shifted in 1993 when Wanda was diagnosed with ovarian cancer. In May of 1994, Earl asked him, as the only broker in family, if he wanted to run the business. “If you can make it profitable, I’ll sell it to you.” So, that’s what they did. That’s the company Tony owns today, which still carries his mother’s name. He made his last payment in 2001.

ncrealtors.org • INSIGHT 9

TONY SMITH, 2015 President

Family It’s clear that family means everything to Tony. He married his wife Nancy in 2001. A true Charlottean, Nancy is his main motivator and his everything. They have a magical relationship and rarely share a cross word. “She understands me. She is a fabulous lady.” Tony has two step-daughters, Amy and Glennis, both of whom are married to decorated firemen. He beams with pride as he talks about them, recounting their professional achievement — one receiving the Medal of Valor and the other the Distinguished Service Award as a result of a fire and rescue mission in which they worked together to save a life. He remembers listening to the chilling 90-second 911 call, as it described one son-in-law carrying a woman out of the fire, while the other ran the attack hose. Tony has two grandchildren, Caden and Reagan, and his face lights up when he talks of them. “Although they don’t share any of my DNA, they still love me unconditionally.” Never having any children of his own, their relationship is very special to him. Caden, 10, performs in the rodeo, and Reagan, 12, is an absolute beauty who also rides horses. It turns out that the entire family consists of “horse people,” minus Tony himself! “Even my son-in-laws rodeo.” In his spare time, Tony and his family enjoy vacationing in Myrtle Beach. In 1999, Tony’s dad talked him into buying a vacation home there and he and his family like to go as often as they can for “away time.” A self-described football fanatic, Tony is an avid Carolina Panthers fan and he and Nancy take every opportunity they can to enjoy their season tickets. Most of all, Tony enjoys what little spare moments he has doing what he loves most, spending time with his family.

Tony stands proud with his family. From left: Son-in-law Clint, stepdaughter Amy and granddaughter Reagan, wife Nancy, grandson Caden, stepdaughter Glennis and son-in-law Barry Ussery.

Road to Presidency In 2001, Tony had a conversation with his dad about running for president of the Charlotte Regional REALTOR® Association. He told Earl that he thought it was time to give back to a business that has done so much for their family. His dad told him “if you really feel that way, I think you’d be great at it.” That’s what motivated Tony to become involved, so in 2003, he became president of CRRA. He remembers it as a great year and is proud of all they accomplished, especially initiating their Housing Opportunity Foundation, the non-profit charitable arm of the association, which has grown into a fabulous organization over the years thanks to the support of expanding programs and incredible leadership.

He continued to serve over the years in various capacities at the local, state and national level, but it was Tony’s involvement as an RVP at NC Association of REALTORS® in 2012 that helped him recognize a hole he felt needed to be filled. He had watched his mother be extremely successful and saw first-hand the tremendous benefits it provided his family. Although his mother was never one to be involved, she would gladly write a check to support the cause. But, Tony had the desire to give back more than financial support. He wanted to give back his time. He enjoyed being involved again and went home one day and asked Nancy what she would think if he ran for president of NCAR. She told him if he was going to do it, he needed to do it now. And that was it. He wanted the job and wanted to make a difference.

TONY’S ADVICE TO BUYERS AND SELLERS: “Always use a professional REALTOR®. They are worth what you pay them. You may not think so when you first start the transaction, but at the end of the day, you’re so glad you did.” 10 INSIGHT • Spring 2015

FOR NEW AGENTS WHO GET IN BUSINESS: “I’d say education is #1. When I got into the business, I immediately got my GRI, CRS, ABR… all those things. Those designations prepared me and helped build my business. And, certainly embracing technology is critical to the success of your business. There were days when I thought I’d really like to take six months off to figure out how to use technology. Finally I decided to hire the right people to learn how to use it.”

The Year Ahead Tony talks about two kinds of leadership — there are leaders and those who lead. Leaders are in position of power and authority. Those who lead want to inspire. That is his driver. He wants to inspire people to want to be a part of the association because it is something good. “As long as I can make a difference, I want to be involved. I’m willing to step out there and do what it takes. I’ve committed to the next few years and everything else is going to take care of itself because I know I’m giving back to something that has given so much to my family. I think of my mom, Wanda. Knowing what she did and the success I’ve been blessed with, giving back is so important to me.” And he knows there are only a couple of ways to do it. “My real goal this year is to get REALTORS® to become engaged. If the industry has been good to you, I don’t know why you don’t get involved. It will come back to you. The real estate business is at a pivotal point — the stakes are higher and the game and the names have changed. There are things going on that can change our industry as we know it and we have to get a handle on it. There are outside forces and third parties that want to do to the real estate business what the internet did to the travel industry. We need to keep that in front of us. I’ve grown tired of having to justify my relevance as a REALTOR®. My customers get it. These other people — they don’t. As great as technology is, there is nothing that can replace what a REALTOR® does. There is an emotional piece that goes along with it, between buyers and sellers, that only someone who cares understands.” Tonys’ focus this year is “Building the NC REALTOR® Nation.” “That’s what it’s all about. We need to be a force of nature from an advocacy standpoint. Not standing around as whining victims. We need to deal with all adverse things that could affect private property rights, homeownership and anything that deals with real estate. Working together, we can accomplish great things.”

This year, Tony looks forward to making a difference and giving back to an industry that has done so much for his family.

Tony encourages young professionals to utilize every resource, especially the opportunity to be involved.

“Also, engagement and involvement. It is important to learn what outside forces affect business and which obstacles are going to keep you from being successful. New agents need to figure out how to take control of those things. ” ncrealtors.org • INSIGHT 11

Brenna Booker-Rouse

LEADERSHIP ACADEMY CLASS OF 2015

Raleigh Regional Association of REALTORS®

Get ready TO MEET

A PROMISING new group OF NC REALTOR® Leaders Bill Aceto High Country Association of REALTORS® After receiving his real estate license in 2007, Bill grossed the top percentile in sales for his MLS and became the broker-owner of Blue Ridge Professional Property Services and Blue Ridge Realty & Investments, all before the age of 30. An active member of his community, Bill is a co-founder of the Young Professionals of Boone, served as Secretary of the Watauga County Board of Elections and is involved with the Boone Chamber of Commerce. Bill attributes his leadership skills to years of experience working alongside and learning from great leaders in his family and the industry.

Randall Blankenship Asheville Board of REALTORS® As the son of a REALTOR®, Randall has always had a passion for real estate. After making his way through the corporate world, he circled back to what he truly loves, receiving his license in 2012. Since then, Randall has been an active volunteer at both the local and state level. Randall feels that it is imperative for NCAR and each local association to have a clear definition of the value they provide their members. He believes that educating members of that value will not only keep them engaged, but will enable associations to remain relevant in such a dynamic environment.

Jenna Hinman Johnston County Association of REALTORS® In 2012, Jenna earned her real estate license and completed her postlicensing classes while enrolled as a full-time college student at the age of 18. She served as Vice-Chair of her local YPN in 2013, and hopes to one day serve on JCAR’s Board of Directors. Jenna is an active volunteer at the Benson Area Chamber of Commerce and was recognized as Ambassador of the Year in 2013. She is looking forward to learning more about NCAR and hopes to not only build lasting friendships, but gain insight from her peers through Leadership Academy this year.

12 INSIGHT • Spring 2015

As the owner of Transition Realty Group, Brenna has worked hard to develop a business model that creates a culture of success through leadership and education. She has a passion for helping others and strives to make an impact on the real estate industry by being a strong role model and an effective leader. Brenna is a graduate of the Triangle REALTOR® Leadership Academy, a member of The Women’s Council of REALTORS® and serves on the Diversity Committee at both her local association and NCAR.

Brenda Carroll Raleigh Regional Association of REALTORS® Brenda is the owner of Total Source Realty and leader of the Just Call Brenda Real Estate Team. With a strong real estate presence in her market for almost 20 years, Brenda has an extensive resume of involvement and activities at her local association and NCAR. While her greatest growth has come from service as a Church Elder and through participation in the Triangle REALTOR® Leadership Academy, Brenda is most honored and humbled to be the first recipient of the RRAR President’s Award, in recognition of her dedication and service to her association and the real estate industry.

Sandy Ellington-Graves Burlington Alamance County Association of REALTORS® During her term as President of Burlington Alamance County Association in 2014, Sandy created a partnership between her association and the local homebuilders association. Together, they hosted multiple fundraisers, organized over 100 volunteers and worked with several business partners to raise thousands of dollars to build a Habitat house in her community. She was given the President’s Award by the homebuilders association in recognition of her dedicated service and was honored to receive the REALTOR® of the Year award from her peers. Also, as a testament to the unparalleled level of service she provides to her community, Sandy was given the local Times News Readers Choice Award for the second year in a row in 2014. This year, she hopes to get more involved at the state level and learn more about the relationship between NCAR, NAR and each local association across NC

Stephen Long Winston-Salem Regional Association of REALTORS® Stephen introduced himself to NCAR in 2011 when he called with the idea of creating a Young Professionals Network at the state level. Not only was he instrumental in the creation of NCAR’s YPN, but he was completely committed to its success. Since then, he has demonstrated his leadership ability by being an active committee member and an effective Board member at both the local and state level. Stephen is the current President of Winston-Salem Regional Assn. of REALTORS® and continues to serve on the NCAR Information Management Advisory Group. In his community, Stephen is an Assistant Scout Master for the Boy Scouts of America. An Eagle Scout himself, Stephen understands the importance of guiding youth as they mature into leaders and begin to accomplish their personal goals.

Teresa MacFarlane Gaston Association of REALTORS® A Gaston native, Teresa has been proudly serving her community and her association for many years. At her local association, she has chaired several committees, served on the Board of Directors and has always had a passion for RPAC fundraising. During her 2013 term as President of GAR, Teresa made it her goal to improve the image of the real estate industry in her community. Through a Housing Opportunity grant from NAR, her association was able to host a free housing fair to raise awareness that affordable housing conditions were improving. Teresa has developed a reputation of dependability and honesty that has not only earned her great trust and respect in her community, but has led to her being honored as Gaston Association’s REALTOR® of the Year in 2013.

Steven Norris Raleigh Regional Association of REALTORS® As the first male president of the Women’s Council of REALTORS®, Steven has shown great tenacity and strength as a leader. He is confident in his abilities and proud of his accomplishments, yet humble enough to admit that there is always so much to learn. Steven believes that being a REALTOR® is not just “selling houses,” but also something one does out of passion and as a way to make life better for the communities in which they serve. He feels that with the right direction and insight from NCAR he will be able to thrive within all aspects of REALTOR® leadership.

Lucia Turlington Harnett Area Board of REALTORS® Lucia is the 2015 President of Harnett Area Board of REALTORS®, serves on the Board of Directors for the Johnston County Association of REALTORS® and is the co-owner of three separate businesses. She considers her roles as business owner, broker, wife, and mother to all be positions of leadership and hopes the NCAR Leadership Academy will equip her to put her best foot forward in each category. Lucia feels it is imperative for NAR and NCAR to constantly communicate the value of the association to agents and consumers in order to raise awareness as the voice of the real estate industry, ensuring the general public understands the value of being represented by a REALTOR®.

Lisa York Sanford Area Board of REALTORS® Lisa has been serving her community, local association and NCAR with vigor for several years. She is the Immediate Past President of the Sanford Area Association of REALTORS®, chaired her local RPAC committee from 2008-2011 and was honored to receive the Rising Star Award at her local association in 2009. At the state level, Lisa is current Chair of the Diversity Committee, member of the Convention Committee and was the recipient of the NC RPAC Chairman’s Award in 2010. In addition, Lisa is a proud member of the National Auctioneers Association, serves as 2nd Vice President for Auctioneers Association of NC Auxiliary and has been recently accepted into the Certified Auctioneers Institute for 2015. In her community, Lisa is a past Ambassador for the Sanford Area Chamber of Commerce and was honored to receive the Ambassador of the Year Award in 2010.

TO FIND OUT MORE ABOUT THE LEADERSHIP ACADEMY VISIT

ncrealtors.org

ncrealtors.org • INSIGHT 13

SPOT LIGHT

Photos by Robin Cooper Photography.

main street perspective Our fellow REALTOR®, Senator Rick Gunn, works hard to kick start a stronger NC economy. BY NICOLE ARNOLD When asked about his experiences in the legislature, North Carolina Senator Rick Gunn responds with characteristic REALTOR® instincts. The commercial REALTOR® states he enjoys the negotiating process that goes into lawmaking. “I’m learning to be a better advocate for North Carolina every day.” It is difficult to believe this natural leader, now in his third term in the Senate, never had a desire to run for office. In fact, the idea of campaigning for any political office never crossed his mind, not until colleagues began pushing him in that direction. Serving

on the boards of various nonprofits in and around Burlington, North Carolina, Gunn had enough budgetary and public speaking experience to rival any would-be politician. For many months, he turned down all requests to run for Senate District 24. So what changed his mind? Senator Gunn says that a business perspective was not prominent in the General Assembly prior to 2010. He began to feel that he could be a pro-business voice in the legislature —someone who could explain how business owners carve out a living, build the economy, strengthen their communities and provide for their families.

“I come from Main Street,” says Gunn. “That’s my perspective. As a commercial REALTOR®, I work with businesses.” Gunn knew that he already understood the challenges that business owners faced, including regulatory concerns and difficulties acquiring capital. He determined his focus, if elected, would be to champion pro-business bills. With the right leadership, these bills could become legislation that would create an environment to kick start the economy. Senator Gunn has been as good as his word. During his past four years in the General Assembly, he has worked tirelessly to sponsor legislation to bolster North Carolina’s economy. In 2015, he will reintroduce his New Market Jobs Act (NMJA), a bill that will drive capital into rural communities. “Small businesses need access to capital,” he says, as he described the bill. Gunn is quick to point out that this bill is not an economic stimulus package. Rather, the NMJA is a capital bill. “To grow [as a business] you must have capital,” he explains. Small town entrepreneurs and small businesses continue to face the hurdle of banks that cannot lend to them because of federal regulations. What is needed, according to Gunn, is a solid alliance of REALTORS® and building industry voices partnered with county and municipal associations and local chambers. These are the allies from both the private and public sectors that Gunn works with every day.* As a young man starting out in his career, Gunn quickly learned the lessons of the business world firsthand. He cut his teeth in the commercial real estate market of Charlotte in the 1980s. The most important aspect in building his career as a REALTOR® was the opportunity to learn from and work with his father, who passed away in 2003. “My parents instilled great values and trusted us to make good judgments,” says Gunn. * Since this interview, Senator Gunn has introduced this bill, Senate Bill 35. ncrealtors.org • INSIGHT 15

SPOT LIGHT

His 13 years working with his father taught him to surround himself with positive mentors who enjoy what they do. Gunn finds similar relationships in his REALTOR® family as well as among his Senate colleagues, whom he describes as “49 of the finest individuals I have ever worked with.” A pivotal moment in Gunn’s career as a REALTOR® came when he took the risk of moving his business to Burlington. His goal was to be the real estate source for Alamance County. From finding sites, first contacts, working with the Chamber or just answering the calls of those who needed help — Gunn would do it all. His timing was excellent, and he found the location superb. “I love getting to the mountains or coast in three hours,” he says. A big fan of our state, Gunn emphasizes his respect for the university system and his admiration for the people of North Carolina. They are “so grounded, so Southern and so smart,” he says. “We are really, really lucky to live where we are.” Gunn’s enthusiasm for his home state, and especially his adopted hometown of Burlington, is easy to understand. As a successful REALTOR®, Gunn has developed an authoritative voice in the business community of Alamance County. His vision for shaping the environment of this fast-growing area has benefited his hometown and informed his perspective in the legislature. Senator Gunn is not alone in his involvement in his community. His wife of 33 years, Gayle, has previously served on the Alamance County Board of Education. Their two sons, now grown and working, both have their real estate licenses. It seems that the REALTOR® roots run deep in the Gunn family. Senator Gunn cites examples of condominium investment and renting and development experiences as evidence that his sons appreciate the hard work, personal investment and community pride that come from a career in real estate. Gunn calls upon his family’s roots as REALTORS® when evaluating legislative proposals. “We still have regulatory hurdles,” he says. “We have legislation 16 INSIGHT • Spring 2015

Gunn emphasizes the need for REALTORS® to be quick to act in times of legislative peril.

that’s worn out its welcome. It’s not consistent with the market we deal with today.” Gunn consistently seeks out these regulations, which he believes complicate an already heavily regulated industry. He takes his role as a REALTOR®legislator very seriously. It is important for REALTORS® to understand that “everything I and my fellow legislators do can have a direct or indirect impact on your business.” According to Gunn, what North Carolinians need is the right people at the right time, to seek challenges and to respond to them. “NCAR does a terrific job advocating,” states Gunn. Still, he emphasizes, REALTORS® must be vigilant. Pressure from outside groups creates a legislative atmosphere conducive to adding, not subtracting, regulations that affect the industry. Gunn wants REALTORS® to know the red flags that could lead to bad

policy, and to be quick to act in their own best interest at times of legislative peril. For REALTORS® who seek to be politically active or run for office, Gunn has this advice for them: “Trust your gut — not your head, not your heart; trust your gut.” Senator Gunn believes that the businessmen and women who make up the REALTOR® family already have the skills required to make sound policy decisions. He encourages REALTORS® seeking public office to find trustworthy mentors with excellent experience. And when in doubt, remember to “trust your gut.” Senator Gunn’s gut instincts have not led him astray as an excellent advocate for us in Raleigh. The NC Association of REALTORS® is proud to have his leadership in the legislature. We hope his outstanding example encourages more REALTORS® to seek political office and to speak out for our industry.

upcoming webinars MARCH 11: 10AM-11AM WEBINAR WEDNESDAYS: DocuSign Advanced: Getting the Most Out of DocuSign for your Business

• NC REALTOR® Mark Saunders will show you how to utilize Docusign’s most advanced features. APRIL 8: 10AM-11AM WEBINAR WEDNESDAYS: How does state legislation affect your bottom line?

• Want to hear how potential legislation can impact your business and your livelihood? Find out what’s happening from the NCAR Government Affairs team.

MAY 13: 10AM-11AM WEBINAR WEDNESDAYS: The demise of the HUD-1: will you be ready August 1st?

• Learn about new regulations and practices that are going to have a big impact on real estate closings and the way real estate agents and closing attorneys work together.

GRAB YOUR COMPUTER & REGISTER NOW: ncrealtors.org

2015 Annual Sponsors PLATINUM

DIAMOND

GOLD

SILVER

America’s Preferred Home Warranty J.Y. Monk Real Estate School RE/MAX Carolinas Region Two Men And A Truck zipLogix

CoreLogic The North Carolina Association of REALTORS® would like to thank all 2015 Annual Sponsors.

ncrealtors.org • INSIGHT 17

INSIDE NC REALTORS®

For more information about Homes4NC and Wines for Humanity please visit the following websites: homes4nc.org winesforhumanity.com

To schedule a tasting, please contact Shanell Smaw ssmaw@ncrealtors.org 919-573-0991 Don’t drink wine, but want to help? Make an online donation or purchase a Homes4NC license plate.

HOMES4NC

A Passion for Wine, a Heart for Others

ELECTION INFO

There is no doubt that REALTORS® are some of the most giving, hardworking people on earth. In our industry, some days are trying while others are extremely triumphant. Either of those days is likely to end with a glass of wine! Now, imagine if that glass of wine could help benefit communities throughout North Carolina. Homes4NC is partnering with Wines for Humanity to make that opportunity a reality. Created with the goal of reducing homelessness for families with children, Wines for Humanity conducts inhome wine tastings and donates a percentage of bottles sold to local charities with a similar mission. Since its inception in 2007, Wines for Humanity has raised over $2.6 million through wine tastings held by generous hosts in nine states, including North Carolina. In partnering with this charitable organization, Homes4NC can expand its reach and make a greater impact in our local communities. And you can help! Host a wine tasting in your home, local association or real

estate office and a percentage of the revenue earned will be donated to Homes4NC. You will sample at least seven wines and discuss how to properly select and pair it with food. This is not limited to the REALTOR® community, so invite your family and friends to help our fellow North Carolinians in need and enhance the image of REALTORS® in our communities. Homes4NC is the North Carolina Association of REALTORS®’ 501(c)(3) housing foundation created to increase safe, decent and affordable housing for all North Carolinians. Homes4NC is led by a volunteer Board of Directors made up of REALTORS®, Association Executives and representatives from other housing-related organizations. The organization has provided $60,000 in down payment assistance grants to low- and moderate-income families as well as $311,010 in matching grants to Habitat for Humanity and other housing-related organizations.

Applications are now being accepted for President-Elect, Treasurer, Regional Vice Presidents for Regions 1, 2, 5, 7, 8 and 10, Finance and Budget Committee members, Issues Mobilization Committee member and NAR Directors to begin serving in 2016. The deadline for receiving applications is March 27, 2015. If you are interested in serving the Association, contact Donna Peterson at 336-808-4221 or dpeterson@ncrealtors.org to obtain an application. Elections will be held August 24-27, 2015.

18 INSIGHT • Spring 2015

INSIDE NC REALTORS®

AWARDS AND RECOGNITION The following Association Executives received a $1000 scholarship to the 2015 AE Institute: • • •

Elizabeth Hensley, Burke County Board Dawn Kerr, Rocky Mount Area Assn. Laurie Ridenhour, Lexington Davidson County Assn.

Congratulations to these individuals for their hard work and dedication to the industry.

The following Association Executives received a $750 scholarship to the 2015 Regional AE Conference: • • • • • • • •

Sandra Barnhardt, Richmond County Board Brittani Cowles, Wilkes County Assn. Melinda Greene, Goldsboro Wayne County Assn. Morgan Harper, Salisbury/Rowan Assn. Dawn Kerr, Rocky Mount Area Assn. Chris Triepke, Roanoke Valley Lake Gaston Board Dana Wooten, Johnston County Assn. Fay Wright, McDowell Board

STAFF DEVELOPMENTS

NCAR Welcomes New Titles and New Employees to the Team JASON EVANS Local Government Affairs Director Jason Evans’ experience includes campaign work for Mark Jacobs, Mitt Romney, Jon Huntsman and Rick Scott. He is a USMC veteran and a graduate of Texas State University and Florida State University. LEE ANN MARTIN Accounting and Education Assistant Lee Ann Martin joins us from Carter Bank and Trust in Martinsville, VA. With a bachelor’s degree in business administration in management and a master’s in business administration from American National University, she is currently working on a bachelor’s degree in accounting and her CPA license. SETH PALMER Local Government Affairs Director Seth Palmer is a former policy advisor to the NC Department of Transportation who most recently was founder and principal of Longleaf Strategy Group. He is a graduate of NC State University. SHANELL SMAW Political Fundraising Assistant Shanell Smaw previously worked at Quintiles and Urban Ministries of Wake County. She obtained a bachelor’s degree at UNC-Greensboro and a master’s in public administration from UNC-Charlotte. ISABEL VILLA-GARCIA Legislative Affairs Specialist Isabel Villa-Garcia previously worked at the General Assembly with members of the House and then as a Government Affairs Associate with the North Carolina School Boards Association. She is fluent in English, Spanish and French and a graduate of NC State University.

NICOLE ARNOLD Director of Political Communications and Local Government Affairs Nicole Arnold was named Director of Political Communications and Local Government Affairs. She previously served as the shared Local Government Affairs Director for the High Point Regional Association of REALTORS® and the Greensboro Regional REALTORS® Association. She obtained her bachelor’s degree from Duke University and a master’s in public administration at UNC-Charlotte. ROBERT BROOME Director of Public Policy Robert Broome was named Director of Public Policy. He joined NCAR in 2013 as Director of Regulatory Affairs. Broome has 15 years of experience as a professional lobbyist for REALTOR® associations in Tennessee and Atlanta, Georgia. He is a graduate of Austin Peay State University. KRISTIN MILLER Director of Political Fundraising Kristin Miller was named Director of Political Fundraising. Miller has been with NCAR since 2007, serving first as manager of the NCAR Partners Program and more recently as manager of the NC REALTORS® Political Action Committee. She is a graduate of Appalachian State University. CADY THOMAS, Chief Lobbyist Former Director of Government Affairs Cady Thomas, who recently joined FOCUS Carolina, will continue to serve as NCAR’s chief lobbyist to the General Assembly. She graduated from Sweet Briar College, received her J.D. from Washington College of Law and her master’s in business administration from Kogod School of Business, both at American University. ncrealtors.org • INSIGHT 19

INSIDE NC REALTORS® PARTNER UPDATE

NCAR Adds More Partners to Help Improve Your Business The NC Association of REALTORS® Partner Program is dedicated to providing you with the best offers and biggest savings on products and services you use most. That’s why we’ve added a few new partners to the list to help build your business and make it the best ever in 2015. Tenant Screening Has Never Been Easier We are excited to announce our partnership with MyRental.com by CoreLogic®, an online tenant screening service designed for independent rental owners to facilitate educated leasing decisions. MyRental.com is backed by CoreLogic® SafeRent® – the nation’s single largest aggregator of current tenant screening data and analytics. Information in the CoreLogic® SafeRent® databases is updated 24 hours a day, seven days a week and undergoes seven layers of quality control to validate and clarify the data. Through our CoreLogic® SafeRent® partnership, we are able to offer customers the flexibility of purchasing single reports or conveniently bundled packages. We are also able to offer a 20% discount off services purchased through North Carolina Association of REALTORS®. Get started today and receive your 20% discount!

your smartphone. No more mileage logs or clipboards! Take pictures of receipts (on your smart phone) and answer simple questions to bulletproof your expenses against an IRS audit. All your records, including receipts, are stored in the cloud so you don’t have to worry about shoeboxes of receipts anymore. North Carolina REALTORS® get a huge discount on the service!

Who is Pipeline ROI? The name may sound new, but rest-assured that Pipeline ROI is no stranger to NCAR members. Formerly known as NC REALTOR® Partner “a la mode,” the new name reflects new and innovative marketing solutions for NC agents and brokers. In one platform, you have everything: a stunning mobile-friendly website with IDX, social media tools, e-mail marketing, lead capture and routing, decision-driving analytics and more. Plus, you get tons of free marketing content and training. It’s the best way to generate high quality leads, reduce your dependence on the big portals and measure the effectiveness of all your marketing in one program.

Details on Finding Your Partners: Want more information on NC REALTOR® Partners and the discounts they have to offer? For a full listing and details, login to www.ncrealtors.org and click on the blue “PARTNERS” button on the homepage.

Maximize Your Tax Deductions Another one of NCAR’s newest partners is Taxbot, an expense tracking system designed to save you a lot of money. One of the many features allows you to track your mileage with Taxbot’s integrated GPS system on

The REALTOR® Partners Program enables NCAR members to take advantage of exceptional offers from our Partners on practical everyday business purchases. Visit ncrealtors.org or contact Robin Cooper at 336-808-4233 for more information. 20 INSIGHT • Spring 2015

INSIDE NC REALTORS®

Current NC REALTOR® Partners

NCAR STAFF CONTACTS Members of the NCAR staff can be reached by telephone at 800-443-9956 during normal business hours Monday through Friday, from 8:30 a.m. to 5 p.m. Staff members are listed below, by department, with their respective email addresses. Greensboro Office: 4511 Weybridge Lane, Greensboro, NC 27407 Raleigh Office: 421 Fayetteville Street, Suite 1109, Raleigh, NC 27601

INSURANCE & FINANCIAL Nationwide Insurance Pearl Insurance Worksite Associates The Sorin Group

BUSINESS & TECHNOLOGY Office Depot Taxbot Pipeline ROI Lowen Sign Company CoreLogic® SafeRent® Sears Commercial UPS Outstaffing

FORMS zipForm® Plus Formulator

ncrealtors.org/ partners

ADMINISTRATION Andrea Bushnell Chief Executive Officer abushnell@ncrealtors.org Direct Dial: 336-808-4222 Bryan Jenkins Chief Financial Officer bjenkins@ncrealtors.org Direct Dial: 336-294-3112 Donna Peterson Executive Assistant dpeterson@ncrealtors.org Direct Dial: 336-808-4221 Phyllis Lycan Financial Manager plycan@ncrealtors.org Direct Dial: 336-808-4224 Denise Daly Membership Records Coordinator/ Bookkeeper ddaly@ncrealtors.org Direct Dial: 336-808-4223 Lee Ann Martin Accounting and Education Assistant lmartin@ncrealtors.org Direct Dial: 336-217-1048 Sherry Harris Administrative Assistant sharris@ncrealtors.org Direct Dial: 336-808-4230 Mike Buescher Director of Business Development mbuescher@ncrealtors.org Direct Dial: 336-808-4228 Caroline Main Receptionist cmain@ncrealtors.org Direct Dial: 336-808-4220

Samantha Ashburn Electronic Communications Manager sashburn@ncrealtors.org Direct Dial: 336-808-4226

Nicole Arnold Director of Political Communications and Local Government Affairs narnold@ncrealtors.org Direct Dial: 336-808-4237

Tyler Helms Technology Manager thelms@ncrealtors.org Direct Dial: 336-808-4225

Jason Evans Local Government Affairs Director jevans@ncrealtors.org Direct Dial: 336-808-4234

Robin Cooper Partner Program Manager rcooper@ncrealtors.org Direct Dial: 336-217-1047

Seth Palmer Local Government Affairs Director spalmer@ncrealtors.org Direct Dial: 919-573-0992

EVENTS

LEGAL

Mandy Lowe Events Director mlowe@ncrealtors.org Direct Dial: 336-808-4236

Will Martin General Counsel wmartin@ncrealtors.org

Keri Epps-Rashad Meeting Planner and EXPO Manager kepps-rashad@ncrealtors.org Direct Dial: 336-217-1049

GOVERNMENT AFFAIRS Cady Thomas Chief Lobbyist cthomas@ncrealtors.org Direct Dial: 919-573-0996

Kay Bailey Legal Assistant/Legal Programs Coordinator kbailey@ncrealtors.org Direct Dial: 336-808-4235

PROFESSIONAL DEVELOPMENT Ellie Darling Edwards Director of Professional Development eedwards@ncrealtors.org Direct Dial: 336-808-4231

Robert Broome Director of Public Policy rbroome@ncrealtors.org Direct Dial: 919-573-0994 Kristin Miller Director of Political Fundraising kmiller@ncrealtors.org Direct Dial: 919-573-0995

COMMUNICATIONS & MARKETING

Shanell Smaw Political Fundraising Assistant ssmaw@ncrealtors.org Direct Dial: 919-573-0991

Blair Wilburn Director of Communications & Marketing bwilburn@ncrealtors.org Direct Dial: 336-808-4228

Mike Landes Political Specialist mlandes@ncrealtors.org Direct Dial: 919-573-0984

Mckenzie Hamrick Communications Specialist mhamrick@ncrealtors.org Direct Dial: 336-808-4227

Isabel Villa-Garcia Legislative Specialist ivilla-garcia@ncrealtors.org Direct Dial: 919-573-0983

Monica Huckaby Professional Development Coordinator mhuckaby@ncrealtors.org Direct Dial: 336-217-1051

ncrealtors.org • INSIGHT 21

NC RPAC Gives Thanks NC RPAC continues to be one of the largest PACs in the state. It’s a nonpartisan committee organized for the specific purpose of raising funds to support political candidates of all parties, and it exists through the voluntary contributions of members, their spouses and their families. This year we raised $453,083, reaching 97 percent of our goal. More than 5,869 NC REALTOR® members contributed to the PAC, bringing our statewide participation to 19 percent. Additional President’s Circle contributions totaled $29,400, with a total of 21 members — a record for North Carolina! In total, we raised $482,483 for RPAC 2014 — exceeding goal for the first time since 2007! We also ended the year with 114 major investors (our goal was 100), which is 31 more than last year. A total of 39 local associations met or exceeded their goals this year — 11 more than in 2013. The leadership and staff of NCAR greatly appreciate your voice, time and investments and would like to give a big “thank you” to each of you. (A complete list of all 2014 contributors can be found at ncrealtors.org.) 22 INSIGHT • Spring 2015

POLITICAL ACTION COMMITTEE

RPAC Hall of Fame Members

(Lifetime Investments total $25,000 and up)

Douglas Brindley Danny Brock Cindy Chandler Bill Gallagher Swayn Hamlet J. Alan Holden Tommy Lawing Tomp Litchfield Sandra O’Connor Jerry Panz Scott Rooth Buddy Rudd Tony Smith Allen Tate Ronnie Thompson Stephanie Walker Mary Edna Williams Myra Zollinger Platinum R’s ($10,000 or $5,000 renewal)

Leigh Brown* Bradley Cohen* Tony Smith Golden R’s ($5,000 or $2,000 renewal)

Hadi Atri Douglas Brindley* Danny Brock* Ray Burton* Cindy Chandler* Glenn Cobb* Linda Craft

Asa Fleming* Bill Gallagher* Bruce Gates Swayn Hamlet Tessa Hultz* Tommy Lawing* Tomp Litchfield* Christopher Nave* Sandra O’Connor* Buddy Rudd Leland Thomas Ronald Thompson* Stephanie Walker* Patrice Willetts* Mary Edna Williams* Myra Zollinger* Crystal R’s ($2,500-$4,999.99 or $1,500 renewal)

George Blankenship Nancy Braun Diana Braun Andrea Bushnell Robert Carter Michael Davenport Kimberly Dawson Paula Nash Jerry Panz Cady Thomas Sterling R’s ($1000-$2499.99)

Jim Allen Nena Alsaker Nancy Anderson Louis Baldwin Michael Barr Tom Barton

Margaret Bishop Brenna Booker Rouse Kirk Booth Maren Brisson Shawn Britt Phyllis Brookshire Robert Broome Brett Bushnell Michael Butrum Steve Candler Kathryn Carpenter Brenda Carroll David Cross Laurie Davis Anne Marie DeCatsye Harriette Doggett Laurie Donofrio Rosemarie Doshier John Dowdy David Evans Bonzie Everson Treasure Faircloth Carolyn Fincher Margaret Fisher Van Fletcher Peter Frandano Susan Franks Jennifer Frontera Sheri Hagerty W. Neal Hanks Rebecca Harper Wendy Harris Amy Hedgecock Scott Hoyt Ruth Hudspeth Tony Jarrett Carolyn Kasdorf Mary Kendall Debbie Key

Curtis Leonard Christopher MacDonald Lolita Malave Calinda McMickle Larry McNeill Gina Miller Victoria Mitchener Patrick Morgan Elizabeth Motsinger Steven Norris Chet Oehme Mollie Owen Sheila Pierce Denise Pilkington Teresa Pitt Gary Rabon Thomas Rempson Jacqueline Ricks-Sample Hensley Scott Wilson Sherrill James Sherrill Colleen Shriver Betty Smith Renee Smith Margaret Sophie Michael Tavener Ida Terbet James Townsend Linda Trevor* Christina Valkanoff Bruce Williams Leslie Young David Zeitz *Indicates President’s Circle

ncrealtors.org • INSIGHT 23

COMMERCIAL Connection

Lease Accounting Standards: Changes on the Horizon

orwalk, Conn. is home to the Financial Accounting Standards Board (FASB), an independent, non-profit organization that governs accounting standards. The city will also soon be home to headlines about possible changes to lease accounting standards in the U.S. The FASB and its sister organization, the International Accounting Standards Board (IASB), have been engaged in a standards-convergence exercise for the past several years. The projects are designed to standardize how U.S. and international companies handle their accounting practices into several merged standards. In 2010, the two organizations proposed a change to the current accounting standards that would change how leasing expenses are categorized on company balance sheets, with the goal of standardizing accounting methods and increasing transparency. Currently, accounting rules allow many businesses to classify leases as operating expenses, which do not appear on their balance sheets. Under the 2010 proposal, companies would be required to use a “right-of-use” accounting model where both lessees (renters) and lessors (property owners) recognize assets and liabilities arising from lease contracts. This would have brought nearly $1.3 trillion in leased assets back onto companies’ balance sheets, with roughly 70 percent being real estate leases, and the potential to negatively impact the financial stability of many businesses. The initial impact would be significant: lease terms and lease covenants already in place would be subject to change. There would be a ripple effect of how the business of accounting is done, such as increased administrative costs, compliance

requirements, staff training, educating clients about the new changes and the time it would take for companies to react to the new standards. A second draft was issued in 2013 that rolled back some of the initial proposals, but still would have resulted in significant changes to the status quo of accounting in the U.S. In August 2014, the FASB and IASB announced that they have not been able to come to an agreement on the lease accounting proposal, with the FASB pursuing a dualmodel (allowing leases to continue to be listed as either operating expenses, off the balance sheets, or capitalizing them onto balance sheets), and the IASB continuing to pursue a single lease accounting standard. If the organizations cannot come to an agreement, the FASB approach will be the standard in the U.S., which is more favorable to commercial real estate as it allows leases to continue to be classified under the current rules. The final draft of the proposed changes is expected to be published in Spring 2015. The effective date of this proposal will likely be in 2018, where virtually all new and outstanding leases would be subject to the new accounting standard. NAR continues to work with FASB/IASB, lawmakers, regulators and other stakeholders to ensure that any modifications to lease accounting rules will not negatively impact commercial real estate practitioners. With each subsequent version of the FASB and IASB’s proposals, NAR has been engaged in a variety of advocacy efforts, both on its own and in a coalition, to forestall such sweeping changes. Some of NAR’s coalition partners include the U.S. Chamber of Commerce, the Real Estate Roundtable and NAIOP.

STEPHANIE A. SPEAR Regulatory Policy Representative Commercial Real Estate National Association of REALTORS®

ERIN K. STACKLEY Legislative Policy Representative Commercial Real Estate National Association of REALTORS®

WANT MORE INFORMATION?

Check out these NAR resources on lease accounting: realtor.org/leaseaccounting realtor.org/topics/lease-accounting realtor.org/articles/advocacy-report-a-timeline-of-lease-accounting ncrealtors.org • INSIGHT 25

GOVERNMENT Affairs

Advocacy 2015: The Power of the NC REALTOR® Nation

T NICOLE ARNOLD Director of Political Communications and Local Government Affairs narnold@ncrealtors.org 336-808-4237 @nicolearnoldnc

his April, North Carolina REALTORS® travel to the General Assembly to advocate for the values that our membership holds dear. Elected officials in the state capitol will again witness the power of REALTORS® in action, mobilized for victory on the issues that affect our industry and property owners. What issues will REALTORS® campaign for in Raleigh this year?

Advocacy Priorities for 2015 The Budget There is no doubt that the budget will again play a large role in our policy priorities for 2015. Currently, the state treasury has a deficit of $200 million. While North Carolina has overcome larger shortfalls in the past, the specter of this deficit looms over all budget talks this year. To close the gap, legislators may consider raiding “rainy day” or reserve funds. When talking with a legislator, your Government Affairs staff asks you to emphasize the importance of funding the Housing Trust Fund, managed by the NC Housing Finance Agency. The Trust Fund is the state’s largest resource for “bricks and mortar” construction of living options benefiting the homeless, victims of domestic abuse, the elderly, the disabled, those with special needs and others from very low income households. All 100 counties in NC offer this resource, which can provide emergency repairs and accessibility options for those in need. Another fund in budgetary jeopardy is the Non-commercial Underground Storage Tank Fund (formerly the Leaking Underground Storage Tank Fund). Any REALTOR® who has represented a property with pre-existing toxic substances in the soil understands the importance of this fund. Without state assistance, properties with dangerous chemicals will not receive the environmental mitigation needed, and therefore cannot be marketable. Impacted property owners need this vital tool to remain an option for them. NC REALTORS® know from experience that tax credits make attractive cuts for lawmakers looking

26 INSIGHT • Spring 2015

to balance the budget. In 2015, our REALTORS® must communicate the importance of the Historic Preservation Tax Credit. This program ended on December 31, 2014. With its end, many revitalization projects came to a halt. Property owners with empty manufacturing facilities and vacant commercial buildings have lost an essential tool for transforming aging downtowns. North Carolina needs the Legislature to provide dedicated funding for this program. In 2014, members rallied around tax credits for the film industry, for the Workforce Housing and low income housing Loan Program and for the New Markets Job Act. Your Government Affairs staff will continue to monitor each of these issues, and will keep you abreast of any developments on these important matters. Even without the budget shortfall, our members can anticipate further tax reform efforts meant to impact the budget. In Raleigh, the NCAR REALTOR® Party must continue to communicate the importance of the state mortgage interest deduction and the property tax deduction. Without these, property owners essentially experience devaluation in one of their largest investments, their homes. Your Government Affairs staff will also monitor any talks of transfer taxes, taxes on real estate services or any other proposed revenue bill that may affect our industry. Regulatory Issues What non-budget issues can affect our industry’s bottom line? In 2015, your Government Affairs staff will keep an eye on any bills related to the following: • • • •

The school calendar, Private process servers, Residential inspections and registration programs and Licensing board changes.

Finally, homeowners insurance will continue to dominate talks in and around the General Assembly. Last year, your NCAR REALTOR® Party campaigned hard against an increase in premiums. Although our industry claimed

GOVERNMENT AFFAIRS

NC HOMEOWNERS ALLIANCE

BELOW IS JUST A SNAPSHOT OF THE NCHA’S IMPRESSIVE TRACK RECORD IN 2014. victory with Insurance Commissioner Goodwin’s rejection of a rate increase, we still have more work to do. In early 2015, insurance companies decided to appeal the Commissioner’s decision. In addition, legislators will likely propose bills addressing the way insurance companies forecast their rates through modeling software. You can trust your Government Affairs team to bring concise and consistent messaging to you during the course of Session. No matter the issue, REALTORS® will communicate a powerful presence again in Raleigh this year. As an industry, our REALTOR® family stands tall when our members respond to Calls For Action, give to RPAC and participate at a grassroots level. In particular, your individual involvement in the work of the NC Homeowners Alliance (NCHA) fuels our industry’s chances of successful lobbying. So, what does the NC Homeowners Alliance do for you? In 2015, the NCHA pledges to protect the REALTOR® and the private property owner by actively engaging in conversations on the mortgage interest deduction and homeowners insurance. The NCHA will continue to champion candidates through the campaign finance tool of independent expenditures. Perhaps even more importantly, the NCHA will continue to harness the power of the consumer in our legislative efforts. In 2015, you have many tools to help you take a leadership role in your industry’s political future. Individual, grassroots efforts add up to one incredible voice for private property rights in North Carolina. Make sure your voice is heard by being a part of one of the strongest, most organized political forces in the state today, the North Carolina Association of REALTORS®.

1,200

Made 1,200 phone calls to raise awareness about real estate-related issues

100,000

Contacted over 100,000 voters through the mail in support of REALTOR®-friendly candidates

10,000,000

Made more than 10 million online impressions

250,000

Reached over 250,000 people through social media

2,000

Knocked on over 2,000 doors in precincts around the state, distributing information about private property issues and the legislators who support them

Presented to 12 local Boards and Associations to emphasize the importance of political advocacy

Worked seven major public events and festivals around the state to engage the consumer directly

NC HOMEOWNERS

ALLIANCE

To support the work of the NCHA, please sign up on nchomeownersalliance.org with your email address or with your Facebook or Twitter credentials. Then, find the NC Homeowners Alliance Facebook page or Twitter account and share its messages to your clients, friends and families.

ncrealtors.org • INSIGHT 27

GET READY TO

RECONNECT THE CAROLINA REALTORS速 CONFERENCE SEPTEMBER 12-15, 2015 | HILTON HEAD MARRIOTT

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REC NNECT THE CAROLINA REALTORS速 CONFERENCE SEPTEMBER 12-15, 2015 | HILTON HEAD, SC

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FORMS GUY

Dear Forms Guy, I am the broker-in-charge of my office and I have a few questions about handling the paperwork when a property goes under contract. Are you the guy I need to be talking to? I know it’s a little late. Sincerely, Irene DEAR IRENE: I’m your guy, Irene. They don’t call me the “Forms Guy” for nothing. Sincerely, Forms Guy IRENE: Good! Okay, let’s say a buyer client of my firm makes an offer on a property using the Offer to Purchase and Contract (form 2-T). The offer calls for a due diligence fee and delivery of an initial earnest money deposit within five days of the effective date. The closing attorney is named as the “escrow agent.” The listing agent notifies the buyer agent that the seller has accepted the buyer’s offer. The buyer’s agent delivers the due diligence fee to the listing agent promptly. Are you with me so far, Forms Guy?

Forms Guy and Irene talk into the night about “the paper chase” BY: WILL MARTIN | GENERAL COUNSEL FORMS GUY: Yes, I think it is. We are working on adding a place for the listing agent to acknowledge receipt of the due diligence fee. In the meantime, I suggest that the buyer’s agent make a copy of the due diligence fee check, have the listing agent sign and date it when the check is delivered and keep it in his or her file.

FORMS GUY: I’m still with you, Irene. IRENE: Good. Here’s my first question: on page 12 of the contract, there’s a place for the seller to acknowledge the receipt of the due diligence fee. Should the listing agent sign this on the seller’s behalf? FORMS GUY: I suppose he or she could, but I don’t think that’s a good idea. In my opinion, that place should be signed by the seller. IRENE: But there isn’t a place on that page for the listing agent to acknowledge that the buyer agent has delivered the due diligence fee. Isn’t that important?

Contact Will Martin at wmartin@ ncrealtors.org if you have a suggested discussion topic.

IRENE: If the listing agent acknowledges receipt of the due diligence fee, is it still important for the seller to also sign and date the seller acknowledgment? FORMS GUY: Yes, that’s still important. The listing agent should deliver the due diligence fee promptly after he or she receives it and in no event more than three business days after it’s received,

and have the seller sign and date the seller acknowledgment. IRENE: Should the listing agent provide a signed copy of the seller acknowledgment to the buyer agent? FORMS GUY: Yes. I also think it’s a good practice for the buyer’s agent to follow up with the listing agent if they don’t receive a signed copy of the seller acknowledgment pretty quickly. IRENE: Paragraph 1(d) of the contract says that the due diligence fee is to be delivered to the seller. What if we don’t get a signed seller acknowledgment back from the listing agent? Is delivery of the due diligence fee to the listing agent sufficient? FORMS GUY: In the eyes of the law, I think delivery of a check to the principal’s agent would be considered the same as delivering it to the principal. However, we are also working on adding some new wording to the contract that will make it clearer that the delivery of any fee, deposit or other payment, may be given to the party or the party’s agent. But it will still be important in my view for the agents involved to take reasonable steps to ensure that the seller actually receives the due diligence fee and that the receipt is documented. IRENE: Thanks. My next question has to do with delivery of the earnest money deposit (EMD). Is the listing agent or the buyer’s agent responsible for getting the EMD to the closing attorney named as the escrow agent? FORMS GUY: I think the agents should handle the EMD in the same way they should handle ncrealtors.org • INSIGHT 29

the due diligence fee, just reversing their roles. The buyer’s agent should deliver the EMD to the closing attorney and have him or her (or some other authorized person in his or her office) sign and date the escrow agent acknowledgment on page 12 of the contract, and then provide a copy of the signed acknowledgment to the listing agent. The listing agent should closely monitor this and if he or she doesn’t get a signed escrow agent acknowledgment by the date the EMD is due (i.e., 5 days following the effective date), he or she should follow up promptly with the buyer’s agent and/or the escrow agent to confirm that the escrow agent has received the EMD and if so, attempt to get documentation of the receipt. IRENE: If the escrow agent doesn’t sign the acknowledgment on page 12 of the contract, is the contract enforceable? FORMS GUY: Yes, paragraph 21 says that pages 11 and 12 are not a material part of the contract. However, that doesn’t mean it’s not important for the escrow agent to sign the escrow agent acknowledgment. In addition to confirming that the escrow agent has received the EMD, it also serves as the escrow agent’s agreement to hold and disburse the EMD in accordance with the terms of the contract.

Designation CO-HOSTING PROGRAM Invest in Your Members

NCAR wants to help you provide quality education programs that will help enhance the professionalism among your membership. The National Association of REALTORS® offers a wide array of educational resources.

Enhance Your Professional Image

NAR Designations allow your members to increase their value, marketability, proficiency and productivity.

Co-Host a REBAC Course with NCAR

Deliver top-notch real estate education to your members and earn non-dues revenue for your association. It’s a win-win opportunity!

IRENE: If the EMD isn’t delivered within the five-day timeframe, is there even a contract?

It’s Simple and Affordable

FORMS GUY: Yes, there’s a contract, but if the EMD (or the due diligence fee for that matter) isn’t timely delivered, the seller has the right to terminate on short notice. See the last two sentences of paragraph 1(d). That’s why it’s really important in my view for the listing agent to stay on top of the situation. If either the EMD or the due diligence fee is not timely paid, the listing agent should have a conversation with the seller about how the seller wants to handle the situation. Depending on the circumstances, the seller may or may not want to begin the process of terminating the contract.

For a complete listing and detailed descriptions of the courses available through the NCAR REBAC delivery system please visit: http://www.realtor.org/designations-and-certifications

IRENE: Thanks. Last question: let’s say that instead of the closing attorney acting as the escrow agent, the buyer agent’s firm will act as the escrow agent. If the buyer client fails to deliver the EMD within the five-day time frame, does the firm have any obligation to let the listing agent know? FORMS GUY: Good question. We think the answer is probably yes. When you agree to act as an escrow agent, you are taking on some duties to both parties with respect to your handling of the EMD. As noted above, we think a good listing agent should contact the buyer agent/escrow agent to confirm that the EMD has been delivered, but if they don’t, we think that the buyer agent’s firm likely has a duty to contact the listing agent to let him or her know that the buyer hasn’t delivered the EMD. IRENE: Thanks for talking with me, Forms Guy. Wow—it’s getting late. I’m going to bed! FORMS GUY: Good night, Irene! 30 INSIGHT • Spring 2015

Your association can co-host NAR Designation classes with NCAR at any time. NCAR will provide the REBAC license — and you can provide the quality education that your members want!

NAR Designation Classes

NAR Certifications

Accredited Buyer’s Representative (ABR) Certified Property Manager (CPM) Seller Representative Specialist (SRS) Seniors Real Estate Specialist® (SRES)

At Home with Diversity® (AHWD) Military Relocation Professional (MRP) Resort & Second-Home Property Specialist (RSPS) Short Sales & Foreclosure Resource (SFR)

For more information, contact: Ellie Edwards, Director of Professional Development eedwards@ncrealtors.org

336-808-4231