Insight | Fall 2014 by NC REALTORS®

THE VOICE OF REAL ESTATE IN NORTH CAROLINA

VOL 93 NO 4 | FALL 2014

Investing For Your Future Why creating and following a business budget is the best move for your financial future

Leading Through Transition 2015 Vision Quest & Inaugural Meetings

You Asked For It: GRI Is Back! Check out the 2015 curriculum

2014 CONVENTION RECAP HOMES4NC AT WORK IN THE COMMUNITY NCREALTORS.ORG

N.C. HOME ADVANTAGE MORTGAGE

FALL 2014

Contents In Every Issue 4

President’s Message

6 Calendar

A look back at the 2014 Convention & Expo at The Omni Homestead.

Features

Guest Column

Inside NC REALTORS®

Government Affairs

Why creating and following a business budget is the best move for your financial future.

The N.C. Home Advantage Mortgage™ brings homeownership within reach. Meet the NCAR staff, see how Homes4NC is working in N.C. and take a look at the 2014 Rising Star winners. Recap of the 2014 Legislative Session.

25 Commercial Connection

73-plus potential Land disclosure issues.

Investing For Your Future

26 Political Action Committee

RPAC Trivia & Live Auction.

You Asked For It And NCAR Listened!

Learn all there is to know about the new GRI program, course topics and schedule.

Leading Through Transition

Begin 2015 with a bang — attend Vision Quest and Inaugural Meetings at the Omni Charlotte Hotel.

Forms Guy

Technology Tips

Learn about the new delivery requirement added to the contract. It’s time to secure your .realtor domain.

We’ve got an incredible lineup of FREE online educational webinars coming your way this fall and winter. Take a look at the Calendar for upcoming webinar dates and times and be sure to register at ncrealtors.org. ncrealtors.org • INSIGHT 3

“My travels have led to new friendships and have made me astutely aware and gratified by the dedication and passion our REALTOR® family has for our wonderful industry.”

President’s MESSAGE My dear REALTOR® family, It is with extremely mixed emotions that I write this letter. The realization that 2014 is ending is beginning to come into clear focus. This will be my last letter published in Insight magazine. I have tried to slow time down by throwing out an anchor, but to no avail. I guess the old saying “neither time nor tide waits for any man” is true. As I reflect over the past nine months, I vividly remember all the visits to most of our local associations and boards throughout the state. My travels have led to new friendships and have made me astutely aware and gratified by the dedication and passion our REALTOR® family has for our wonderful industry. I have witnessed REALTORS® with hammers and paint brushes in hands to help build a house for a needy family, and I’ve watched them fill an actual school bus with school supplies to help teachers make sure no child is without the basic classroom supplies. There have been clothes and book bag drives, countless blood and food drives and upcoming requests for Christmas presents for needy children. A strong message is being sent out to the local communities: REALTORS® CARE for their fellow citizens. I have witnessed our REALTOR® family members dressing up and performing like 80s rock stars to raise record highs for their RPAC event. Other RPAC events included a wine grab, a determined member cooking 90 Boston Butts and having them delivered, a sit-down, five-course dinner prepared by association members known for their famous cuisine, live and silent auctions and countless other unique ways to get our membership to invest. And invest you did! NCAR set a sevenyear record for the amount raised this year. Congratulations, and thanks to all our RPAC investors for your support. This year you brought back the NCAR Leadership Academy. The academy, birthed by President Bill Bass in 2002, had eight consecutive successful classes, before taking a four-year nap. I had the opportunity to meet with this 2014 group at most of their retreats. The first proved to be outstanding, only to realize it served as the foundation. Each retreat built on the past until the skyscraper was completed. I feel extremely confident that these twelve 2014 graduates will become outstanding leaders. Are you a leader, or have ambitions to become a leader? Go to NCAR’s website and get an application for the 2015 Leadership Academy class, fill it out and send it in. The NCAR Convention and Expo at The Omni Homestead in Hot Springs, Va. was a smashing success. From start to finish, there were smiles, laughter, bonding, educational meetings, games, humorous stories, thousands of hugs and a two-and-ahalf hour nonstop phenomenal show by Craig Woolard and the Embers. The dance floor continued to be overflowing with our 4 INSIGHT • Fall 2014

members shaking-a-leg or doing a line dance throughout the night. A special thanks to Nan McLendon, Jarma Khoury and their committee for a superman’s job to make this the best yet. Family members, thank you for the pats on the back, positive comments, outreach, handshakes and hugs. You have made me feel like a true member of your family. I have felt welcomed and comfortable when our paths have crossed. This is a lesson in friendship and giving, and a valuable tool for me to always share with others. Thank you! AEs, all of you amaze me. The definition of multi-tasking does not even penetrate the shell of your daily tasks. Each of you are the rudder that keeps your association/board ship on course, the gyroscope to smooth the ride and the sail to catch the wind of ideas from your members to generate forward movement. You too have been outreaching and inviting. Thanks! NCAR staff, what can I say? You are comprised of a casehardened chain with links that cannot be broken. To me, all of you are on a pedestal so tall, I need binoculars just to bring you into view. It has been rewarding and extraordinary for me just to have the opportunity to visit each of you in your office to say hello. The ways you have helped lead me, pointed out needed improvements with the kindest of words and encouragement and made sure I navigated back on course when my bearings went awry will always be in my memory bank. There was never a time that I asked for help and did not receive it immediately, nor did any of you show frustration when asked simplistic questions. My biggest regret is that our members do not have the opportunity I have had to get to know all of you. Most of our members have no idea who you are, what you do or the long hours, dedication, concern and love you have for NCAR, and it is their loss. Please know that I love all of your dearly. To all, THANK YOU, THANK YOU, THANK YOU! I will restate that this year has been a roller coaster ride that has continued to go up, up and up, with no turns or loops. Unfortunately, I will experience a vertical drop on January 1, 2015. I feel certain that you will make Tony Smith feel as if he has ridden in the same roller coaster car as I during his 2015 year as NCAR President. Tony will do an outstanding job for our association. Tony, you will be leading the preeminent state association, an opportunity only one person has the honor to have as president for a year. I look forward to 2015 under your direction. Again, thank you all, and God Bless.

Tomp Litchfield

How Old Are They Now? The median age of a home built in the United States is 40. In 1974, when those houses were built, interest rates on 30-year fixed mortgages averaged 9.1 percent and the median existing home price was $32,000.

U.S. housing stock by age

0-14

14%

18 million were built in 2000 or later.

15-54 years old

33 million were built from 1980 to 1999.

30%

40 million were built from 1960 to 1979.

16%

55-95+ years old

21 million were built from 1940 to 1959. 11 million were built from 1920 to 1939.

REALTORS® should be spending on business operating costs. (pg 9)

1,600 The number of

North Carolinians who have become homeowners because of the The N.C. Home Advantage Mortgage™. (pg 16)

5-10 The discount NCAR

years old

25%

25-50 The percentage

9 million were built up in 1919 or earlier.

Source: The U.S. Census Bureau’s 2011 Housing Profile, published July 2013.

members receive on signage with our newest REALTOR® Partner, Lowen Sign Company. (pg 20)

72 The number of

potential Land issues REALTORS® may be exposed to in North Carolina. (pg 25)

500,000 The number of NAR members who can take advantage of a free one-year registration for the .realtor domain. (pg 30)

Insight Magazine, Volume 93, Issue 4 President Tomp Litchfield

Treasurer Treasure Faircloth

President-Elect Tony Smith

Immediate Past President Patrice Willetts

REGIONAL VICE PRESIDENTS Region 1: David Perrot, Kill Devil Hills; Region 2: Jody Wainio, Wilmington; Region 3: Steve Cohen, Fayetteville; Region 4: Kim Dawson, Durham; Region 5: Amy Hedgecock, High Point; Region 6: Patrick Morgan, Boone; Region 7: Marsha Jordan, Lincolnton; Region 8: Alison Royal-Combs, Laurie Knudsen, Charlotte; Region 9: Billie Green, Asheville; Region 10: Teresa Pitt, Jose Serrano, Raleigh; At-Large: George Bell

Executive Vice President Andrea Bushnell Editor Blair Wilburn Assistant Editor/Designer Mckenzie Hamrick Contributors Jane Buchholz Adair Collins Lou Jewell Bridget McCrea

Ellie Edwards Will Martin Jody Wainio

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 February, May, August and November 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 rates paid at Greensboro, NC. POSTMASTER: Send address changes to Insight Magazine; 4511 Weybridge Lane, Greensboro, NC 27407. 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.

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

ncrealtors.org

SOMETHING TO TALK ABOUT

Calendar

UPCOMING WEBINARS

Nov. 7-10

Nov. 12, 10 a.m.-11a.m.

REALTORS® Conference & Expo New Orleans, LA Come to network with the world’s most brilliant real estate pros, learn from industry experts and celebrate in a one-of-a-kind city.

R E A LTO R S

RPR Basics P RO P E RT Y R ESO U RC E Learn all about how to access and use RPR to create customized reports showcasing RPR’s data that’s sure to impress even the most demanding clients.

Dec. 10, 10 a.m.–11 a.m.

Jan. 21-24 Inaugural Meetings & Vision Quest Charlotte Join us for our Inaugural Meetings at the Omni Charlotte Hotel in January. We’ll kick things off with Vision Quest: Leading Through Transition, January 20-21, then celebrate with NCAR’s 2015 President, Tony Smith, at the Inaugural Gala on January 22 and finally dive into committee meetings on January 22-23.

What’s ‘Appening: Tech Tips for Busy Agents On The Go Meredith Oliver will show you how to leverage your smartphone or tablet to its fullest capacity, how to become more efficient and organized, and how to deliver personalized high-touch follow-ups to prospects.

Jan. 14, 10 a.m.–11 a.m. Making Money on Facebook & Twitter Need a good laugh and a somewhat inappropriate (but utterly realistic) view on real estate? Join NC REALTOR® Leigh Brown as she gives advice, opinions and revenue-generating ideas.

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 Administration Andrea Bushnell Executive Vice President 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

6 INSIGHT • Fall 2014

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 Robin Cooper Partner Program Manager rcooper@ncrealtors.org Direct Dial: 336-217-1047 Caroline Main Receptionist cmain@ncrealtors.org Direct Dial: 336-808-4220

Communications & Marketing Blair Wilburn Director of Communications & Marketing bwilburn@ncrealtors.org Direct Dial: 336-808-4228 Mckenzie Hamrick Communications Specialist mhamrick@ncrealtors.org Direct Dial: 336-808-4227 Samantha Ashburn Electronic Communications Manager sashburn@ncrealtors.org Direct Dial: 336-808-4226 Tyler Helms Technology Manager thelms@ncrealtors.org Direct Dial: 336-808-4225

Events Mandy Lowe Events Director mlowe@ncrealtors.org Direct Dial: 336-808-4236 Keri Epps-Rashad Meeting Planner and EXPO Manager kepps-rashad@ncrealtors.org Direct Dial: 336-217-1049

Adair Collins Director of Political Communications acollins@ncrealtors.org Direct Dial: 919-573-0992 Mike Landes Political Specialist mlandes@ncrealtors.org Direct Dial: 919-573-0984

Government Affairs

Kristin Miller RPAC Manager kmiller@ncrealtors.org Direct Dial: 919-573-0995

Cady Thomas Director of Government Affairs cthomas@ncrealtors.org Direct Dial: 919-573-0996

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

Robert Broome Director of Regulatory Affairs rbroome@ncrealtors.org Direct Dial: 919-573-0994

Legal Will Martin General Counsel wmartin@ncrealtors.org 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 Monica Huckaby Professional Development Coordinator mhuckaby@ncrealtors.org Direct Dial: 336-217-1051

Investing

2015 Bu

dget

For Your Future BY: BRIDGET MCCREA

Few people would argue the value of a household budget. Knowing on paper how much money comes in, how much flows back out and how much is saved, enables a level of financial planning of which only a small percentage of Americans take advantage. Without a budget in place, bills, debts and obligations can quickly spiral out of control, leaving families perpetually “in the red.”

ncrealtors.org • INSIGHT 7

Steps to good budget management

Here’s a step-by-step guide to getting your budget on track:

Pull out those bank statements, investment account balances, credit card balances, recurring bills and any other information that has to do with either expenses or income. If you don’t have the paper versions of these documents visit your bank or credit card company online to view your current and past statements.

Small business owners and real estate practitioners think a little differently, often flying by the seat of their pants when it comes to finances, budgets and retirement planning. For example, you may not have learned this in real estate school, but a budget is the most important tool that a business owner can have in his or her toolbox. As many real estate professionals have already discovered, a budget serves as a game plan for both day-to-day and long-term operations, and gives business owners an inside track in both good and bad times.

Rising Above the Masses Greg Herder has worked with hundreds of real estate agents over the years and sees more than his fair share of successes and failures. By far, this CEO of Hobbs/ 8 INSIGHT • Fall 2014

Use the information gathered to come up with a monthly average estimate of money in and money out. Factor in all sources of income (such as child support, alimony, self-employment income, etc.) and all monthly, quarterly and annual bills (these are your “fixed” expenses).

Herder Training in Santa Ana, Calif., says the biggest mistake agents make is that they treat their new career like a job, rather than a business. Unfortunately, since the majority of them work on commissions, that kind of mistake can get pretty costly, pretty quickly. “Agents know that they’re independent contractors, but they still operate as if they had jobs,” says Herder. “That kills most agents’ chances for success because no matter how many hours they put in, they won’t get paid unless they actually perform and sell homes.” The fact that real estate is a timeconsuming, all-encompassing type of “job” doesn’t help either. Agents can literally spend all day answering phone calls, driving through neighborhoods, cruising the MLS for new and expired

listings and pressing the flesh with their contact base — all without generating any immediate income. “So many agents struggle with that mentally,” says Herder, “and never quite grasp the fact that just because you put in the time, doesn’t mean you’re going to make money.”

Laying it on the Line Comprised of estimated sales numbers and the costs required to produce those sales, a budget can be scribbled on a sheet of paper, mapped out in a Microsoft Excel spreadsheet or developed through a sophisticated accounting system like QuickBooks or Microsoft Office Accounting. There are also a number of online budgeting programs available (which don’t

Use a simple Excel spreadsheet or a mobile money management application like Mint to record and track your financial information.

require a software download and/or installation), including those accessible at microsoftoffice.com and thebeehive.org. Some agents opt to track their budgets through QuickBooks, where they enter income and expenses on a daily basis in order to keep on top of their business finances. Having worked with many real estate professionals over the years, Benjamin Bohlmann, a CPA with public accounting firm Mallah Furman in Miami, says his best piece of budgeting advice is “keep it simple.” Rather than trying to act like a Fortune 500 company and complicating the issue, take a step back and come up with an easy way to track income and expenses, and then fine-tune the process to come up with a workable budget. “If you’re using an accounting program, you can record your checks and deposits

Review your budget at the end of every month and adjust accordingly. If, for example, you begin earning more commissions than expected, or if you find that your fixed expenses are higher than you initially targeted, make sure your budget reflects those changes.

for a year and then have the program develop a budget for you and extend it forward for the upcoming 12 months,” says Bohlmann. “As you progress through the year you can use the same program to generate a report that compares the budget to the actual activity. That makes it easy to see where you’re going right, or where you’re going wrong.” Bohlmann says the typical business owner should be spending 25 to 50 percent on the business operating costs, and anywhere from 10 to 35 percent for each of those “other expenses,” depending on his or her income. Working backwards can be an effective way to figure out a workable budget, says Bohlmann. Let’s say you need $24,000 to live on for the year, or $2,000 a month (for rent, auto payments, etc.). That would translate

into the sale of one $200,000 home per month, or 12 sales in a year. Focus on that tangible goal, he says, and the rest of the budgeting process will fall into place. “Very few salespeople can close deals with that regularity,” says Bohlmann. “However, if they know that they have to pay the bills, they will be much more motivated to do so.” Ultimately, you want your budget to serve as a business tool, and not as a burden or hassle. Just like a household would have a budget for handling fixed (mortgage payments, utility bills) and soft (entertainment, home improvements) costs, a real estate professional should be able to pull up his or her budget at any time, tweak it as necessary and use it for business planning and forecasting. ncrealtors.org • INSIGHT 9

2014 CONVENTION RECAP

More than 500 REALTORS® from all corners of the state convened this fall at The Omni Homestead Resort in Hot Springs, Va. President Tomp Litchfield presided over the festivities, which were centered on the challenges and opportunities facing North Carolina REALTORS® in today’s growing economy and ever-changing industry. The event brought together old and new friends for an exceptional time of networking, learning and leadership.

This page, clockwise from top left. REALTORS® Jay Dowdy and Grisel McGurty dress to match our 20s-themed event, along with REALTORS® Tim Venjohn, Wade Corbett, Trevor Foote and NCAR staff member Ellie Edwards. NC REALTORS® danced the night away to beach music from Craig Woolard and the Embers. REALTORS® worked to complete this puzzle of The Omni Homestead. President Tomp Litchfield welcomed his REALTOR® family. Sandra O’Connor accepted the 2014 REALTOR® of the Year award with last year’s recipient, Danny Brock.

10 INSIGHT • Fall 2014

#NCARConv

2014 Awards & Election Winners REALTOR® of the Year Sandra O’Connor Hall of Fame Award George Bell Ben Ball Community Service Award Robbie Perkins Regional Service Award Jody Wainio (Region 2) Regional Service Award Kevin Green (Region 5) ______________________ President-Elect Kim Dawson This page, clockwise from top left. REALTORS® Bruce Williams and Leigh Brown pose for a photo at the Opening Evening Reception. Instructor Steve Kissell helped brokers learn how to find laughter in leadership. Rossi’s education session helped REALTORS® achieve success in business . This year’s Expo was packed with the latest products and services for REALTORS®. REALTOR® Lisa York, NCAR staff member Blair Wilburn and Mike Conway from Systems Engineering stopped to snap a quick photo. Photos by Robin Cooper Photography.

Issues Mobilization Billie Green Finance & Budget Committee Chris Livengood Paul McGill Bruce Williams Regional Vice Presidents Region 3: Bruce Gates Region 4: Greg Payne Region 6: Phil Rector Region 8: Leslie Fisher Region 9: David Wall Region 10: Linda Trevor

For more photos of the 2014 Convention & Expo, please visit our Facebook page, Twitter feed and Instagram account. Remember to use #NCARConv to search directly. ncrealtors.org • INSIGHT 11

NCAR LEADERSHIP ACADEMY CLASS OF 2014

My wish is for everyone with a thirst for knowledge, and a desire to be better, to be able to go through a process such as NCAR’s Leadership Academy. It is an intense condensed version of what it takes leaders years to learn from personal experience. NCAR’s Leadership Academy has helped me understand my association better, but has also given me the tools I need to be a better leader in any organization, including my own business and family. Wendy Harris

Fayetteville Regional Association of REALTORS®

t’s no secret that the NC REALTORS® Leadership Academy is back and extremely well-received by our members! The Leadership Academy Class of 2014 represented all areas of North Carolina; the selection process was based on involvement within the community and/or local association, education, dedication and the ability to stand out among their peers. Over the course of nine months, academy participants attended an intense series of retreats designed to help them increase their effectiveness as leaders and grow both personally and professionally. If you are considering leading within your community, your association or your business, look no further than the NC REALTORS® Leadership Academy! We are currently accepting applications for the 2015 class. Log on to ncrealtors.org, click on the Education tab and then the Leadership Academy page to get started. The mission of the Leadership Academy is to identify and develop a new generation of future leaders. This program can be life changing, but don’t take our word for it… see what this year’s class had to say about their experience! NCAR congratulates the 2014 Leadership Academy graduates, pictured below, at their graduation ceremony at the NCAR Convention & Expo.

Tomp Litchfield planted a seed, “Apply to the Leadership Academy; you’ll be changed forever.” Sounded inspiring, mysterious and right up my “fulfillment alley.” As a local president I thought that if I step up, maybe others will follow; it only takes one. Simply being accepted gave me confidence. I became a part of something bigger, now proud to be affiliated with 11 exceptional peers who inspire me to be better. I am forever bonded with my new professional family! Now graduated, I stand taller in my local board and I know I must raise others to take the same opportunity by simply applying. If I can do it, you can too — and be forever changed! Trevor Foote Rocky Mount Area Association of REALTORS®

I’ve come to realize from my leadership family that we all have different strengths and weaknesses. I’ve learned that sometimes there are other leaders that are better suited to lead than me. Part of being a leader is knowing when to step aside and follow the other leaders. Leading is about serving others and not one’s self. I always say: lead by inspiration and not by aspiration. Wade Corbett Johnston County Association of REALTORS®

Front: Ellie Edwards-NCAR staff, Jarma Khoury, Cirila Cothran, Wendy Harris, Christina Asbury, Trevor Foote, Erin Nixon Back: Brian Tyson, Wade Corbett, Moises Miranda, Tim Venjohn, Mike Slocum, Jay Dowdy, Bill Bass-2002 NCAR President

12 INSIGHT • Fall 2014

You Asked For It! NCAR Listened! The NEW Graduate REALTOR® Institute is set to launch in January 2015! With 8 brand new courses, this comprehensive program will raise the bar of professionalism by expanding beyond the basics; it will provide the tools and resources necessary to increase competency and productivity. Students will gain an in-depth understanding about the business of real estate and what it takes to meet the needs of buyers and sellers in today’s market. Live courses will be made available to each local association as soon as they become finalized. Online courses will be available on the GRI page of the NCAR website. The GRI calendar will be posted on the NCAR website, sent out via email marketing and posted on social media as soon as scheduling begins.

Thank you for being patient with our progress, the wait is almost over! Check out our FAQs for a quick glimpse into the new program.

How is the GRI relevant to my business? The new curriculum has courses on Technology, Negotiating, Seller Clients and Buyer Clients. Can I receive credit for having other designations? Receive up to 12 elective hours for other REBAC designations

Why don’t GRI courses ever come to my city? Every local association will be able to host live GRI Courses.

Will you offer more GRI classes a year? Local associations can offer as many classes as they want, as many times as they want!

Are there any GRI courses available online? 4 of the 8 required courses will only be available online.

Do you offer credit for transactions? Receive up to 12 elective hours for previous transactions

How can the GRI help my business? Improve skills in: • Business Planning • Business Ethics • Legal Issues

How often are GRI classes updated? • 4 brand new, never seen before Online Courses • 2 new live classes still being written ncrealtors.org • INSIGHT 13

PROGRAM OF EVENTS Schedule subject to change.

Tuesday, January 20 2:00pm–5:30pm

Registration

4:30pm–5:30pm Vision Quest Kickoff & Keynote

The Great and Powerful Ah! Karel Murray

5:30pm–6:30pm

Vision Quest Reception

Wednesday, January 21 7:00am–4:30pm

Registration

7:00am–8:00am

Continental Breakfast

Breakout Sessions 8:00am – 12:15pm

Spokesperson/Media Training Debbie Elliott

10:00am–10:15am, Break

8:00am – 12:15pm The 3 “Cs” of Leadership: Credibility, Commitment, Common Sense Karel Murray 10:15am–10:30am, Break

12:30pm–1:30pm Luncheon

Featuring 2015 NCAR President Tony Smith and the introduction of the 2015 Leadership Academy.

Breakout Sessions 1:30pm – 5:30pm Spokesperson/Media Training Debbie Elliott 3:30pm–3:45pm, Break

1:30pm – 5:30pm The 3 “Cs” of Leadership: Credibility, Commitment, Common Sense Karel Murray 3:45pm–4:00pm, Break

14 INSIGHT • Fall 2014

Begin the year with a bang at Vision Quest 2015! This innovative program will give you the confidence and courage to transition existing challenges into opportunities. New and veteran leaders alike will walk away with the techniques to give an appropriate media interview and to effectively connect with peers in face-to-face situations. These practical communication methods will boost your credibility and give those around you a clear understanding of how you, as a leader, define the role in which you’ve been given. Take a look at this year’s program and Inaugural activities. Register to attend at ncrealtors.org.

PRESENTERS KEYNOTE: The Great and Powerful Ah! The 3 “Cs” of Leadership: Credibility, Commitment, Common Sense Karel Murray Karel Murray, CSP, DREI is a nationally respected real estate speaker who is dedicated to providing highly relevant programs that focus on career building systems and reinforcing efforts that enable licensees to deliver exceptional real estate services. Join her for the keynote address as well as a breakout session.

Spokesperson/Media Training Debbie Elliott You won’t want to miss this year’s Spokesperson/ Media Training workshop, taught by NPR Correspondent, Debbie Elliott. Improve your skills in speaking with the media and local communities from one of the best in the business. Join us for a luncheon featuring 2015 NCAR President Tony Smith and the introduction of the 2015 Leadership Academy.

HOTEL INFORMATION Omni Charlotte Hotel surrounds you in comfort with a touch of genuine North Carolina hospitality. Centrally located in the heart of Charlotte’s financial district, the AAA Four Diamond hotel is the perfect destination for our 2015 Vision Quest and Inaugural Meetings. Linked to 12 city blocks via a sky bridge, Omni Charlotte Hotel is moments away from the Blumenthal Performing Arts Center, Discovery Place, the Charlotte Convention Center and the Epicentre entertainment district. We look forward to seeing you there.

HOTEL RESERVATIONS NC Association of REALTORS® has arranged for a block of rooms at the Omni Charlotte Hotel at a rate of $169, plus applicable state and local taxes. There is a charge for both self and valet parking. Prevailing rates apply. Room cut-off date is December 29, 2014, subject to availability. Make your reservations by phone:

1-800-THE-OMNI – and refer to the group meeting name

Or make your reservations online at ncrealtors.org.

Inaugural Gala

January 22, 2015 | Omni Charlotte Hotel Register online to attend. Evening begins at 6:45pm ncrealtors.org • INSIGHT 15

GUEST Column

One-of-a Kind Mortgage Is Producing Results for First-Time Buyer Market N.C. Home Advantage Mortgage brings homeownership within reach

JANE BUCHHOLZ NCHFA Training and Outreach Coordinator jbuchholz@nchfa.com 919- 877-5683

16 INSIGHT • Fall 2014

ffordable mortgage programs do exist! A mortgage product that is a little over a year old has already helped more than 1,600 North Carolinians become homeowners —and can help you increase sales to the first-time and move-up buyer market. The N.C. Home Advantage Mortgage™ was created by the North Carolina Housing Finance Agency with a unique feature that helps overcome the No. 1 obstacle for first-time buyers —lack of funds for the down payment. Offered through more than 85 banks and mortgage companies statewide, the N.C. Home Advantage Mortgage™ is a 30-year, fixed rate loan with competitive interest rates—plus down payment assistance in the form of a zerointerest, second mortgage for up to 3 percent of the loan amount. The down payment help can be used to cover closing costs and pre-paid expenses. It also can be combined with other funding sources, such as gift funds and municipal seconds, to greatly reduce the up-front cost to the home buyer. Even better—the down payment loan is repaid only if the borrower sells, refinances or moves out of the home before year 15. The debt is reduced by 20 percent each year beginning in year 11, until it is fully forgiven after 15 years. No other mortgage product in the state offers this benefit. The N.C. Home Advantage Mortgage™ is available to buyers with annual incomes of up to $85,000. Buyers must be legal U.S. residents, use the home as their principal residence and have a credit score of 640 or higher. Beyond that, the requirements—and paperwork—are the same as any other loan, depending on whether the mortgage is originated as an FHA, VA, USDA or conventional loan type. The streamlined requirements make the process easy for lenders, REALTORS® and homebuyers. No public funds are involved; the mortgages are funded through sale of mortgagebacked securities. First-time home buyers and veterans can combine the N.C. Home Advantage Mortgage™

with a tax-saving Mortgage Credit Certificate (MCC), to reduce the buyer’s federal income tax liability by as much as $2,000 per year for each year they occupy the home. Buyers who qualify (maximum income requirements for the MCC vary by county) can adjust their federal withholding amount and use the extra takehome income to help make mortgage payments. “I recently sold a home here in Washington, N.C., and the buyers were able to take advantage of a (Home Advantage Mortgage™) loan with NC Housing,” said Gerri McKinley of Coldwell Banker Coastal Rivers Realty. “It was a great opportunity for them with a super rate and terms. We were closed in four weeks. My clients were thrilled, and so was I!” You can learn more about the N.C. Home Advantage Mortgage™ and MCC program (and earn Continuing Education credits) by taking our popular “Financing Dreams” class. Agents who complete the class are listed as Preferred Real Estate Agents on the Agency’s website (www.nchfa.com) and are on their way to becoming a Workforce Housing Specialist with Homes4NC.

The N.C. Home Advantage Mortgage™ has streamlined requirements to make the process simple for lenders, REALTORS® and homebuyers.

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INSIDE NC REALTORS®

Meet the Staff: Education, Events & Legal

Photo: Robin Cooper Photography

From left: Monica Huckaby, Ellie Darling Edwards, Will Martin, Mandy Lowe, Bill Gifford, Kay Bailey and Keri Epps-Rashad.

KAY BAILEY Title: Legal Assistant/Legal Programs Coordinator Why members would contact you? Ask me about forms! How long have you been with NCAR? 31/2 years Where were you before? Right Management Consultants for 11 years Education: Baltimore Institute School of Business, Baltimore, Md. What’s your favorite song on your iPod right now? “Wonderland By Night” (an oldie but goodie) Guilty pleasure? A massage What’s the best piece of advice that you’ve ever received? “Pray today that you made the right decision yesterday.” What are you currently reading? “The Kill Artist” by Daniel Silva 18 INSIGHT • Fall 2014

ELLIE DARLING EDWARDS Title: Director of Professional Development Why members would contact you? I will answer questions about designation and education programs, not just what NCAR is offering, but also general questions about the various programs that are available. I can help you choose an education track that will help move your career in a positive and productive direction. I also work with NCAR Leadership Academy, and am happy to answer any questions about the program or how to apply. Anyone interested in learning more about or joining the Appraisal Section, Property Management Division or Young Professionals Network can contact me. How long have you been with NCAR? Since November 2006 Where were you before? Spa Director at the Grandover Resort & Conference Center

Education: Studied Interior Design at Texas State University Related designations/experience: I’m currently pursuing the REALTOR® Association Certified Executive (RCE) designation. In high school, you were voted (or would have been voted) “Most Likely to…” I was Best All Around one year and nominated for Class Clown a couple of times - but kept getting beat by some Bozo! What was your nickname growing up? My older brother has always and will forever call me “Kid.” What are you currently reading? Let’s see, currently I’m reading anything that has to do with the “Amazing Spider-Man”… every. single. night. But on occasion “Meet the Super-Hero Squad” or “DC Super Friends” will make it back into rotation…

INSIDE NC REALTORS® When you were little, what did you want to be when you grew up? I wanted to be a veterinarian…and a Dallas Cowboys Cheerleader. No I am not, nor have I ever been a Cowboys fan; I’m just from Texas and I honestly thought that was a career option! KERI EPPS-RASHAD Title: Meeting Planner and Expo Manager Why members would contact you? I plan and execute all NCAR annual meetings, events and manage the expo during Convention. How long have you been with NCAR? 8 years in January Where were you before? The Grandover Resort & Conference Center Education: American Business and Fashion Institute, Charlotte N.C. Related designations/experience: Worked as a Corporate Travel Agent and a Convention Services Manager. In high school, you were voted (or would have been voted) “Most Likely to…” Miss Thomasville High School When you were little, what did you want to be when you grew up? News Reporter What’s the best piece of advice that you’ve ever received? I’m responsible for my own destiny. Guilty pleasure? Facials BILL GIFFORD Title: Attorney Why members would contact you? Will and I provide guidance regarding all aspects of real estate brokerage law. How long have you been with NCAR? Martin & Gifford, PLLC has represented NCAR since June 1, 2005. Where were you before? I was the “Director of Litigation” for Oakwood Homes Corporation in Greensboro. Education: BA from University of Pennsylvania. Law degree from UNC Chapel Hill Guilty pleasure? I’m a birdwatcher.

What are you currently reading? I am in a book club that reads exclusively nonfiction. We are currently reading “Chasing Fortune, Truth and Faith in the New China.”

before joining NCAR was managing The Triangle Society.

What’s your favorite song on your iPod right now? “Caraluna” by Bacilos

Related designations/experience: Certified Meeting Professional (CMP) and Certification in Meeting Management (CMM).

When you were little, what did you want to be when you grew up? I wanted to play second base for the New York Yankees.

In high school, you were voted (or would have been voted) “Most Likely to…” Organize and Plan - even in high school I was organizing and planning!

MONICA HUCKABY Title: Professional Development Coordinator Why members would contact you? Information/registration for educational opportunities with NCAR How long have you been with NCAR? 14 years (Legal, Events and Professional Development Departments) Where were you before? Paralegal/Legal Assistant for the Department of Defense and other law firms (U.S., Korea and Germany) Related designations/experience: ePRO What was your nickname growing up? Monchichi Guilty pleasure? Buying the latest techie gadgets before anyone else. What’s your favorite song on your iPod right now? Anything 80s What’s the best piece of advice that you’ve ever received? “You should marry your best friend, Jonathan.” And I did! MANDY LOWE Title: Director of Events Why members would contact you? I manage the Events Department to deliver first class programs including Inaugural, Vision Quest, Convention and Legislative meetings. How long have you been with NCAR? Since January 2001 Where were you before? During my 18 years with Club Corporation of America, I worked at the Pinehurst Resort, The Carolina Club, The Capital City Club, The Cardinal Club and my last position

Things you would be surprised to know about me: I was a Dixie Bell Clogger! What are you currently reading? “Gone Girl” by Gillian Flynn What’s the best piece of advice that you’ve ever received? Respect is not a thing that comes through name, profession or money. Respect is something earned through the things you do and the way you live your life. WILL MARTIN Title: Legal Counsel Why members would contact you? I talk, write about and lose sleep over a wide range of legal issues affecting the practice of real estate brokerage. How long have you been with NCAR? 18 years Where were you before? Private practice of law in Winston-Salem Education: BA Washington College, JD Wake Forest University School of Law Related designations/experience: 29 years practicing law; 15 to 25 thousand hotline calls. What are you currently reading? A biography about famous hotline lawyers. It’s a short read... Guilty pleasure? Watching UNC-Chapel Hill lose at any sport. What’s the best piece of advice that you’ve ever received? Slow down, you’re going too fast (P. Simon); Don’t give yourself away (J. Mitchell); Keep your eyes on the road, your hands upon the wheel (J. Morrison); Do unto others as you would have them do unto you (J. Christ). ncrealtors.org • INSIGHT 19

INSIDE NC REALTORS®

Homes4NC Helps Wilmington Vet Become a Homeowner BY: JODY WAINIO, HOMES4NC IMMEDIATE PAST PRESIDENT

Homes4NC is helping to impact housing affordability throughout North Carolina with down payment assistance grants and the Workforce Housing Specialist certification. Here’s a real life example where one NC REALTOR® used Homes4NC programs to help impact the life of a client in her community. Meet Jeff Bridges—an American Veteran, single dad, and prison guard who lives paycheck to paycheck. Bridges’ dream was to purchase a home for himself and his 11-year-old daughter, Olivia. His home-buying process began in 2013 when he went to a lender to get pre-qualified for a mortgage. He was referred to his REALTOR®, Workforce Housing Specialist Jody Wainio, to help him in his search. Wainio and Bridges found a home and negotiated a great price and terms. Two weeks after the home went under contract, they received a call from the lender stating that Bridges no longer qualified, as the terms of the loan had changed, and would have to work on some things before she could get him approved. Bridges was broken-hearted that he lost the house, but never gave up. Thanks to Wainio’s role as a Workforce Housing Specialist, Bridges was able to take advantage of the $2,000 grant made available through Homes4NC. Eight months later, they worked with a new lender and were finally able to find the perfect home.

PARTNER UPDATE

Save on Real Estate Signs with Lowen Sign Company As a member of the NC Association of REALTORS®, you receive a special discount on all your signage needs with our newest REALTOR® Partner, Lowen Sign Company! Lowen Sign is the premier supplier of innovative yard signs, banners and vehicle wraps that enhance the business opportunities of REALTORS® every day. An approved sign

Photo from Jody Wainio.

Jeff Bridges and REALTOR® Jody Wainio celebrate his new home purchase.

“Jody is awesome! The $2,000 grant helped pay my closing costs. Being a homeowner has given me pride of ownership and true value. Olivia and I love our new home,” Bridges said. Know people in your community in a similar situation? Visit homes4nc.org to learn how to become a Workforce Housing Specialist and help qualify your buyers to earn $2,000 down payment assistance. It’s easy, and it’s worth it!

supplier to all major real estate franchises across the country, Lowen Sign prides itself in shipping stock message and name riders the next business day. NCAR members receive 5 to 10 percent off current prices in vendor’s published franchise and independent catalogs, respectively. Visit ncrealtors.org for details or call Lowen Sign directly at 800-545-5505 to start your savings.

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 • Fall 2014

INSIDE NC REALTORS®

AWARDS AND RECOGNITION

A New Class of Rising Stars Meet the 2014 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: in a short period of time, they’re already taking the industry by storm. We congratulate them for their success! WILLIAM STEVEN ALLEN Firm: Allen Real Estate Group, LLC Association: Greensboro Regional REALTORS® Association Member of YPN, involved in REALTORS® ‘R’ Rebuilding, member of Social Committee which is responsible for planning various events for GRRA and described as “a future leader in his association.” STEPHANIE LANIER Firm: The Lanier Property Group Association: Wilmington Regional Association of REALTORS® Serves on Professional Development Committee, Leadership Academy at WRAR and Leadership Wilmington grad in 2013, contributes to community through Welcome Home Angel, Cape Fear Steering Committee and Make-A-Wish Foundation. BENJAMIN RAY Firm: Blowing Rock Investment Properties Association: High Country Association of REALTORS® Closed in excess of 13 ½ million with 73 successful transactions since joining his association in 2011, local Board Director, active in his church and community and described as “technologically savvy and a fine example of what all REALTORS® should strive for.” MICHAEL WHITE Firm: Keller Williams Realty Association: Durham Regional Association of REALTORS® Serves on DRAR’s REALTOR® Community Service Committee and has shown great commitment to the DRAR Legislative Committee, “sharing valuable insights and opinions to help further their goal.”

GINGER VEREEN Firm: Keller Williams Preferred Realty Association: Raleigh Regional Association of REALTORS® Driving force behind the RRAR YPN since 2011, received the Web Choice Award in REALTOR® Magazine’s 30 Under 30, volunteers and donates to First Tee of the Triangle, Salvation Army and other nonprofit and disaster relief efforts. DANNY WILLIAMSON Firm: Keller Williams Ballantyne Association: Charlotte Regional REALTOR® Association Honored as 2012 Vane Mingle Rookie of the Year, 2011 Keller Williams Ballantyne Rising Star, served on Government Affairs Committee and participated in the Leadership Academy for CRRA in 2013, trains new agents in lead generation.

STAFF DEVELOPMENTS

New faces at NCAR Mike Landes, Political Specialist Mike Landes joined the North Carolina Association of REALTORS® in May of 2014 after completing his M.A. from Duke in Public Policy. He has worked in a number of different fields spanning the nonprofit sector, education and social entrepreneurship, including over two years’ life and work overseas in Israel and Uganda. Most recently, Landes worked as a political consultant for the firm Campaign Connections in Raleigh. Born in Manhattan and raised in Massachusetts, Landes earned bachelor’s degrees from Columbia University and the Jewish Theological Seminary (Political Science and Bible Studies, respectively).

ncrealtors.org • INSIGHT 21

GOVERNMENT Affairs

State Legislative Sessions, 2014 & 2015 As we get ready for the 2015 state legislative session to begin on January 14, NCAR reflects on accomplishments during the 2014 session and prepares to protect your and your property owners’ futures.

ADAIR COLLINS Director of Political Communications acollins@ncrealtors.org 919-573-0992

uring the 2014 legislative session— the longest short session since 2006—NCAR and its advocates met many of our objectives that protect our members, property owners and property rights. The issues highlighted below represent a “snapshot” of housing policy accomplishments made during the 2014 session. Please don’t hesitate to visit ncleg.net or contact the NCAR Government Affairs Office at gainfo@ncrealtors.org for additional information on the bills or others considered this year.

Protecting Property Rights & Members NCAR helped defeat a proposal that would have violated landlords’ and owners’ property rights. The proposal would have made them financially liable for their tenants’ unauthorized improvements. We also supported a new law that protects REALTORS® and others from 22 INSIGHT • Fall 2014

frivolous patent lawsuits. And, we successfully lobbied to amend a bill that could have created numerous problems with title searches.

Regulatory Reform Governor Pat McCrory signed the new Regulatory Reform Act into law. With support from Rep. Tim Moffitt (Buncombe) and Sen. Rick Gunn (Alamance), NCAR helped eliminate a provision in the Act that would have expanded exemptions for licensure. The provision would have decreased consumer protections in transactions. And, with support from Rep. Mike Hager (Rutherford), we backed a provision to improve the timeliness of property disclosure requirements for mineral, oil and gas rights. Current law requires disclosure of oil and gas rights in the contract, but the new provision will require disclosure in a separate form prior to the offer. The effective date is January 1, 2015.

GOVERNMENT AFFAIRS

LOOKING AHEAD At the 2014 NCAR Convention & Expo in September, the NC REALTORS® Legislative Committee met to plan advocacy for 2015. This coming year, the committee and NCAR’s staff, members, General Assembly allies and other advocates will engage with you and the legislature on several priority issues. In the coming year, NC REALTORS® will: >> Enlist support to protect North Carolina homeowners from eminent domain of mortgages >> Continue to push for homeowners insurance changes that will make the rate-making process more fair and transparent >> Support efforts related to leasing issues, including increasing the allowed uses for private process servers and making changes to the rental inspection and registration statutes >> Continue to push for tax credits and grants for film production, historic preservation and mill rehabilitation incentives and economic development for our state >> Continue to protect appropriations for affordable housing initiatives, such as the Housing Trust Fund, a resource for financing affordable housing, and the Workforce Housing Investment Program, a low-income housing grant program

State Budget After much negotiation, the legislature passed a new state budget, which the Governor signed into law. The budget provides $3.5 million for the Noncommercial Leaking Underground Storage Tank Fund, which helps homeowners with the costs of cleaning up petroleum releases from home heating oil tanks and small farm tanks. The budget includes almost $7 million in funding for the Housing Trust Fund, a resource for financing affordable housing. Thanks to support from Rep. David Lewis (Harnett), the budget also allocates $10 million for a low-income housing grant program, instead of a tax credit. The Workforce Housing Investment Program will assist in developing low-income housing units throughout the state. The budget provides limited funding for a film grant program (to be used in the first half of 2015), instead of a tax credit. NCAR thanks Representatives Ted Davis, Jr. (New Hanover), Susi Hamilton (New Hanover) and Frank Iler (Brunswick) and also Sen. Bill Rabon (Brunswick) for their support of film incentives.

Commercial Real Estate A new law reduces energy code and storm water regulations on existing commercial structures, which will encourage re-use and redevelopment.

>> Support an independent Real Estate Commission rather than a combined agency overseeing all licensing boards in the state >> Guard against consumer protection erosions, such as expansion of license exemptions >> Protect NCAR members, their clients and the industry from negative tax reform changes as the NC Senate renews its tax reform efforts.

WAYS TO GET INVOLVED 1. Volunteer: The NC Homeowners Alliance is working to strengthen the voice of REALTORS® in North Carolina and protect property rights. Visit nchomeownersalliance.org to learn more, get involved and update your contact information. 2. Prepare to Act: Be ready to act on the go and advocate from anywhere—download the mobile app from realtoractioncenter.com. The app will alert you to take action in the months ahead. Also, join or ask your broker to join the Broker Involvement Program at realtoractioncenter.com, to ensure REALTORS® stay “top of mind” with lawmakers. This program is free to join and offers an easy, effective tool for engaging agents in calls for action. 3. Invest: Visit ncrealtors.org to make your RPAC investment now! ncrealtors.org • INSIGHT 23

SAVE TIME • SAVE MONEY • START TODAY! In today’s hectic business world, who has the time to research vendors or check out how to get more for your money? The North Carolina Association of REALTORS® has taken the guesswork out of this tedious task with the REALTOR® Partners Program. Through this program, NCAR members receive special discounts on the products and services they use most.

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Contact the partner of your choice at the number or website given. Be sure to identify yourself as a NC REALTOR® member to get the great discounts and quality service you deserve. Contact Robin Cooper at 336-808-4233 for more program information.

COMMERCIAL Connection

73-Plus Potential Land Disclosure Issues

nyone involved in a typical Land transaction — leasing, buying, or selling — may be exposed to 73-plus potential Land issues here in North Carolina. For years, I have advocated the need for a Land Disclosure form throughout our country. So far, just 14 states have such a document available for the real estate industry. Most states do have Residential Property Disclosure forms which are executed at the time of the listing by the sellers and reviewed and signed off by the buyers during the offering process. North Carolina’s Residential Property & Owners’ Association Disclosure Statement (form 140) lists 37 issues, far fewer than the number listed in NCAR’s Land Information Worksheet (form 502), now available in our commercial forms. Although not required, the NCAR REALTORS® Commercial Alliance Board of Governors has considered recommending that it also be used as a mandatory disclosure form. Even the Virginia Association of REALTORS® adopted our form and other NCRCA Commercial forms last year. I encourage you to go to the NCAR website and print a copy of the Land Information Worksheet (form 502). There you will find a direct reference to the many issues and critical aspects involved in a typical Land transaction. Because of this, choose someone to help you through a Land transaction and follow our Code of Ethics, as stated below...

Unfortunately, when one goes to real estate school they are not taught about Land. Consult with a Land attorney if you plan to create your own Land Disclosure form and please check with your broker-in-charge before creating a form or using form 502. Potential risks and liabilities created because of non-disclosure can be very costly. NCREEF is exploring the sponsorship of a course titled, “Introduction to Land Brokerage,” with contributions from myself. If approved, this course will be the first four-hour C.E. Elective Land course for North Carolina. I encourage all agents and especially BICs to take this course if they plan to practice Land Brokerage. Remember, farms also tend to have considerable Land and those dealing with these types of transactions would benefit from this course and these evaluations. Use the Land Information Worksheet (form 502) as an educational tool, encourage your agents to get familiar with these Land concepts and, as always, reach out to the NCRCA Forms Committee with any comments, observations or contributions. Please contact Kay Bailey at NCAR at kbailey@ncrealtors.org.

LOU JEWELL, ALC Accredited Land Consultant RLI Land 101 Instructor Land Pro Real Estate, Inc. www.mylandpro.com

Article 11 of the NAR Code of Ethics and Standards of Practice states: The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, Land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. “REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.”

Whether it’s agricultural land, timberland, ranch or vacant land, investing in education can raise the bar of professionalism during a transaction.

ncrealtors.org • INSIGHT 25

POLITICAL ACTION Committee

RPAC Trivia a “Smart” Success

N KRISTIN MILLER RPAC Manager kmiller@ncrealtors.org 919-573-0995

orth Carolina REALTORS® brought their knowledge, humor and generous dollars to this year’s 2nd annual RPAC event, a Trivia & Auction night. The event not only provided entertainment, it also raised over $33,000 for the North Carolina REALTORS® Political Action Committee (NC RPAC), the highest ever recorded for a Convention fundraising event. The five-round competition was held in conjunction with the annual NCAR Convention and Expo in Hot Springs, Va. The legendary Bill Gallagher hosted the event, along with our magnificent auctioneer, Lisa York. Trivia teams could have up to five players, and the cost to play was $15 per person or $75 per team. When the doors opened, the room quickly filled with over 33 teams participating. Each trivia guest received a bid number and had the opportunity to bid on items in a live and silent auction. Auction items varied from beach houses to mountain escapes, antique furniture, designer purses, artwork and numerous jewelry and wine items. Trivia categories for the event were wide and varied with the rounds gradually increasing in difficulty. The night ended with a final question in which members could wager their points based

on how well they “thought” they would know the answer after the category was announced. Prizes were awarded to the top three teams and the “REALTORS® are just Ninjas in Blazers” trivia team took home the championship prize of $1,000! Team members were Rosemarie Doshier, Christopher Nave, David Cross, Kirby Troutman and Wanda Proffitt. In second place was “$pecialAgent$,” including members Mike Slocum, Wade Corbett, Trevor Foote, Jarma Khoury and Tony Khoury, each winning $25 gas cards. The third place team, “Anonymous,” made up of Glenn Cobb, Stephen Long, Krista Long, Mark Saunders and Marcia Saunders, took home $20 gift cards to Outback Steakhouse. Congratulations to all our RPAC Champions and a huge thanks to all who helped with the event. RPAC would not be anything without the incredible support of NC REALTOR® members! If you missed the event, pictures are available for viewing on our NC REALTORS® Facebook page. RPAC participation gives each REALTOR® in every Congressional district and North Carolina legislative district an opportunity to be heard. Be a part of the process and get involved by making an investment to NC RPAC today by visiting ncrealtors.org.

Clockwise from top left: Attendee Lana Cieszko had a chance to bid on fantastic silent auction items. Auctioneer, Lisa York, and RPAC Chair Connie Corey led the Live Auction between trivia rounds. Bill Gallagher came back to host the 2nd annual event. Trivia winners “REALTORS® are just Ninjas in Blazers.”

26 INSIGHT • Fall 2014

HOMES4NC FUNDRAISER

FUN-draising for Homes4NC More than 120 REALTORS® updated their look at the 2014 NCAR Convention & Expo in September, all in the name of Homes4NC. Attendees lined up at a mobile photo booth to get new headshots, while learning more about Homes4NC programs. Attendees’ contributions, coupled with matching donations from the photographer, Studio 16, raised $3,000. Additionally, The Omni Homestead Resort graciously donated 5% of activity bookings generated from NC REALTORS®. Horseback riding, relaxing at the spa, falconry and hiking excursions all helped to raise over $1,200 for Homes4NC. Would you like to support low- and moderate-income families who need affordable housing? Learn more about Homes4NC programs, donate or sign up to volunteer at homes4nc.org.

Top: Association Executive Deborah Key poses for an updated headshot. Left: Heather Bowers Cross with Carolina Bank helps REALTORS® sign up for the photo booth and optional activities.

ncrealtors.org • INSIGHT 27

QA +

Forms Guy Gets Back to Jojo on His Oh-No Over Contract Change BY: WILL MARTIN | GENERAL COUNSEL

Dear Forms Guy,

In paragraph 1(d) of the new version of the Offer to Purchase and Contract (form 2-T), it states that the due diligence fee has to be made payable and delivered to the seller by the effective date, whereas before it just had to be payable to the seller by the effective date. Please explain to me why this change was made! Sincerely, Jojo DEAR JOJO: As you point out, the old contract didn’t specifically say that the due diligence fee had to be delivered to the seller. On occasion, buyers have taken the position that they were in compliance with the contract if they simply made a check payable to the seller and provided a copy of it to the seller to confirm the existence of the check, and that delivery of the check itself within any particular time frame wasn’t required at all. Although this interpretation is not at all in keeping with the intent of the contract, it did raise a potential legal question about the seller’s right to terminate the contract on account of the buyer’s failure to deliver the due diligence fee to the seller. Thus, a specific “delivery” requirement was added. Sincerely, Forms Guy 28 INSIGHT • Fall 2014

JOJO: Okay, I can see that. But let’s say I submit an offer for a buyer client and the listing agent notifies me that the seller has accepted the buyer’s offer. Won’t the buyer be in breach of contract immediately? FORMS GUY: Your question assumes that the due diligence fee isn’t delivered with the buyer’s offer. If the due diligence fee is delivered with the offer, it will of course already be in the possession of the listing agent or seller by the effective date. JOJO: It’s rare in my marketplace for the due diligence fee to be delivered with the offer.

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

FORMS GUY: I understand, but even if the due diligence fee isn’t delivered with the offer and the offer is accepted, I don’t think it is correct to characterize the buyer as being in breach of contract. Time is not “of the essence” with respect to the delivery of the due diligence fee. When the seller signs the offer and the signing is communicated to the buyer agent or buyer, a legally binding contract is created. It is true that the contract is subject to being terminated by the seller on short notice if the buyer doesn’t deliver the due diligence fee, but in my view, the contract gives a buyer who chooses not to deliver

the due diligence fee with the offer a sufficient opportunity to avoid termination. In order to terminate the contract, the seller must first give written notice to the buyer/buyer agent to deliver cash or immediately available funds and the buyer then has one banking day following the date the seller gives the notice to deliver the fee. When an offer is delivered without the due diligence fee, the buyer agent and the buyer should anticipate that the offer may be accepted and should be prepared to get the due diligence fee into the listing agent or seller’s hands promptly if the offer is in fact accepted. This can be accomplished by the buyer leaving a check for the due diligence fee with the buyer agent to deliver upon notice of acceptance of the offer, or, if that’s not practical, the buyer can mail the check by overnight courier promptly upon notice from the buyer’s agent that the offer has been accepted. JOJO: If the buyer mails the check, does it matter if the check is mailed to the buyer agent, the listing agent or the seller? FORMS GUY: The contract simply states that the due diligence fee has to be delivered to the seller. Thus, the delivery can be accomplished in any of the

FORMS GUY

ways you mention, depending on the specific circumstances. Ordinarily, though, I think that delivery of the due diligence fee would be best accomplished by overnighting the check to the buyer agent, who would in turn deliver it to the listing agent. That way, both agents are “in the loop” on whether and when the due diligence fee is paid. JOJO: The contract now has an option that allows delivery of the initial earnest money deposit within five days of the effective date. Why not have the same option for delivery of the due diligence fee? FORMS GUY: Good question, Jojo. There was discussion about adding an option permitting delivery of the due diligence fee within five days of the effective date. However, there was a practical concern expressed that the longer the buyer is given to deliver the due diligence fee, the greater the possibility of the buyer changing his or her mind about buying the property and the seller not getting the due diligence fee at all after having effectively taken the property off the market when it went under contract. Although the seller could sue the buyer for the due diligence fee, that’s rarely a practical solution. It’s not always easy balancing the respective rights and obligations of the parties, but that’s what we strive for in all of our standard forms. In this situation, it was determined that the fairest thing is to require delivery of the due diligence fee to the seller sooner rather than later. JOJO: That’s a good point, but isn’t it also true that the buyer may might not deliver the initial earnest money deposit? I guess I’m still

having a hard time understanding why the contract doesn’t treat the delivery of the due diligence fee and the initial earnest money deposit the same way. FORMS GUY: The difference is that the seller is entitled to keep the due diligence fee when a contract is formed. The seller is only entitled to keep the initial earnest money deposit if the buyer doesn’t terminate the contract during the due diligence period. Thus, a buyer’s failure to deliver the initial earnest money deposit wouldn’t put the seller in any worse position, assuming the buyer exercised the right to terminate during the due diligence period. JOJO: Could I change the contract to allow for delivery of the due diligence fee within five days of the effective date? FORMS GUY: Do you have a North Carolina law license, Jojo? JOJO: Well, no, but… FORMS GUY: Then the answer is no, you can’t. There would be nothing wrong with the contract being modified to permit delivery of the due diligence fee at some time other than the effective date, provided of course that the parties both understand and agree to the modification and provided that the change is made under the supervision of a North Carolina attorney. JOJO: Okay, thanks Forms Guy. I’ve got to rush back to my office for an important meeting. FORMS GUY: Get back, Jo!

ALERT! Coming January 1, 2015— New Mineral, Oil and Gas Rights Mandatory Disclosure Statement As a result of the recent enactment of Section 49(a) of Senate Bill 734, effective January 1, 2015, sellers of most improved residential properties will be required to provide a separate Mineral, Oil and Gas Rights Mandatory Disclosure Statement to prospective buyers no later than the time they make an offer. The new law will apply to all sellers who are required to provide a Residential Property and Owners Association Disclosure Statement. In addition, it will apply to new construction sales, leases with options to purchase and sales where the parties agree not to complete a Residential Property and Owners Association Disclosure Statement. It should be provided by sellers whose properties are already on the market on January 1 (unless it is under contract as of that date) or for properties that go on the market on or after January 1, 2015. The legislation requires the Real Estate Commission to develop this new disclosure statement. According to the Commission’s legal staff, the new disclosure statement should be available on the Commission’s website by December 1. The legislation does away with the requirement that oil and gas rights disclosure be addressed in the sales contract. Therefore, effective January 1, 2015, existing oil and gas rights disclosure language will be eliminated from the Offer to Purchase and Contract (form 2-T) and the Offer to Purchase and Contract (New Construction) (form 800-T). Please contact the NCAR Legal Department at 800/443-9956 with any questions. ncrealtors.org • INSIGHT 29

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