VREB Comes Knocking (page 4) • Owner/agent signs? (page 10) September/October 2010
A journal for real estate professionals published by the Virginia Association of REALTORS® • www.VARealtor.com
Buyer agent: Beware C
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Helping your emptors caveat
firstword ANDREW KANTOR
Published by The Virginia Association of Realtors® The Business Advocate for Virginia Real Estate Professionals Cindy Stackhouse, GRI President John Dickinson, CCIM, GRI President-Elect Trish Szego, CRB, CRS Vice President John Daly, SFR Treasurer John Powell, ABR, CRB, CRS, GRI Immediate Past President R. Scott Brunner, CAE Chief Executive Officer scott@varealtor.com Ben Martin, CAE Vice President, Marketing & Communications ben@varealtor.com Andrew Kantor Editor & Information Manager andrew@varealtor.com For advertising information, Brittany Sullivan at (410) 584-1968 or e-mail var@networkmediapartners.com The mission of The Virginia Association of Realtors® is to enhance its membership’s ability to achieve business success. Commonwealth magazine (ISSN#10888721) is published bi-monthly by the Virginia Association of REALTORS®, 10231 Telegraph Road, Glen Allen, VA 23059-4578; (804) 264-5033. Virginia Association of REALTORS® members pay annual dues with a one-year subscription included within their dues. Periodicals postage paid at the Glen Allen, VA post office and additional mailing offices. USPS Per. # 9604. Postmaster: Send address changes to: Commonwealth magazine, 10231 Telegraph Rd., Glen Allen, VA 23059-4578. Custom Publishing Services provided by Network Media Partners, Inc. Executive Plaza 1, Suite 900, 11350 McCormick Road Hunt Valley, MD 21031
VARbuzz.com. Your virtual café for real estate news, views, and issues. Read the perspectives of your fellow Virginia REALTORS®. Join the conversation at VARbuzz.com today.
Get it? Got it? Good!
In addition to the print version of Commonwealth, VAR publishes electronic newsletters at regular intervals, including...
...the online version of our print magazine, published every month. If you’re not receiving newsletters via e-mail from time to time, it may be that we don’t have your correct email address. Contact your local association of REALTORS® to enter your address in the database. Also, check the spam filter on your computer and authorize any email from varealtor.com.
Good luck with that If you look out my father’s front door, you’ll be looking straight down a street. His block forms the top of a T, and his house happens to be at the center. This has never been an issue. But times change. Through the years the neighborhood’s demographics have shifted — at various times it’s been Jewish, Korean, Irish, Hispanic, and who knows what else.* These days it’s mostly Chinese, which brings me back to his house and its location. A local Realtor®, herself a Chinese immigrant, told my father his house had bad feng shui because it sat at the end of a street like that. Apparently all the good luck spills out of the house and down 58th Road. If I remember correctly, that eventually leads to the Van Wyck Expressway. You never know what might “stigmatize” a property. The owners of one house worked to change its number from 112 to 108. It’s in Amityville, you see, and prospective buyers might Google “112 Ocean Avenue.” On the other hand, in 2006 New York’s Tishman Building sold for a record $1.8 billion. You might not know the Tishman Building, but you know its address: 666 Fifth Avenue. Move up the Hudson to Nyack and one Helen Ackley, who profited nicely from her “haunted” house. But when she sold it without mentioning this fact to the buyer, he was less than
pleased. He sued for rescission of the contract and damages for fraudulent misrepresentation. (He won rescission but not damages. In an famous decision, the court ruled that “As a matter of law, the house is haunted.”) Some states require disclosure of “stigmatized” properties, whatever that means. Should my father disclose the good fortune pouring out his front door? And if a house is haunted, who’s to say that all spirits are bad? California’s law defies logic as only it can: Sellers must disclose a murder or suicide on the property if it occurred within the past three years, and — if it was particularly gruesome — the details. Does your typical poltergeist dissipate after only three years? Apparently so, at least on the west coast. Who knew? So count your blessings, among which is the fact that most of Virginia’s laws at least make sense. That should keep you in good, well, spirits. l * Technically they’re Jewish-American, Korean-American, etc., but in Queens, if you had to add “-American” every time, you’d never finish a conversation.
Andrew Kantor, Editor andrew @VARealtor.com
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September/october 2010 Volume 17 ● Issue 5
contents
departments 4 quickhits The latest news and announcements for Virginia’s Realtors®
8 legallines Questions and answers about Virginia real estate law
12 lifelessons When real estate pros break the rules ... and get caught
14 formfactor Where should you put that Equal Housing Opportunity logo?
24 accessibletech In a high-tech world, it’s often the low tech that stands out
in every issue
features
16
Buyer agent: Beware Lots can be wrong with a house, and concerned buyers will turn to their Realtors® for help. If your clients are worried about asbestos, leaking oil tanks, meth-lab residue, or a lot more, here’s a guide to pointing them to the right resources — while staying out of trouble.
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28 rpacreport 34 varbuzzcontest 35 contactvar 36 lastword APEX Award of Excellence winner 2
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Look for this icon; it tells you when a story relates to one of VAR’s six goals for 2010. In this issue, see how the REal Show builds on the foundation of our previous conventions, adding more and better sessions, speakers, and education opportunities. And visit www.REalShowVA.com to learn more.
Correction In the July/August issue’s “Life Lessons” section, we misidentified the board involved. The decision were those of the Real Estate Appraiser Board, not (as we wrote) the Real Estate Board. We apologize for any confusion.
www.VARealtor.com
quickhits
ANDREW KANTOR
Risk managment
Legal actions
VREB to begin random inspections DPOR's Compliance and Investigations Division is going to begin random inspections of real estate firms in Virginia — so says the Virginia Real Estate Board in its summer newsletter. These inspections are random, not surprise, so if your firm is chosen you’ll have time to prepare. The main goal is to check the status of escrow funds being held, verify licenses, and make sure financial records are in order, but while they’re there inspectors will also make sure the firm is complying with all regulations. That means a review of a firm’s policy and procedures manual, checking on the availability of training, and making sure agents are properly supervised. VREB suggests that now is a good time “to conduct a thorough internal review of your firm’s supervision practices, firm policy and procedures manual, availability of training, licenses, escrow accounts and record keeping practices.” (Not sure you're in compliance with the regs? VAR can help. Check out our members-only Broker Center at VARealtor. com/brokercenter for starters, where you'll find links to our Broker Toolkit, Virginia Real Estate Broker Field Guide, and information about the Virginia Managers Council — all of which will help you be ready for a random inspection.)
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Home warranty company RESPA rule changes It’s legal for real estate brokers and agents to be paid for services they provide for home warranty companies, said HUD, as long as they aren’t paid for referrals. (There are a few other conditions, too.) The point of the HUD ruling was to clarify if and when a home warranty company can pay a real estate professional (without violating the Real Estate Settlement Procedures Act), particularly the provisions on kickbacks and unearned fees. Here’s the gist, but you should head over to HUD to read the full interpretive rule (www.VARbuzz.com/go/HUDexplains): If you accept a payment from a warranty company to market that company to a particular homebuyer or seller, that’s an illegal kickback. So, for example, you can’t take payments for referrals. However, depending on the particulars, an HWC may compensate a real estate broker or agent for services that are “actual, necessary, and distinct from the primary services provided by the real estate broker or agent.” That’s just the basics, and you should know the details. Go to HUD and get ’em. Out of NAR
Banking on Realtors® VAR is now an official partner of the Realtors® Federal Credit Union, the NARcreated, member-owned, not-for-profit financial institution. (Don’t call it a bank!) That means great rates on everything from investments to loans, plus the usual money market, savings, and checking accounts. All Realtors® and their immediate family members are eligible for lifetime membership. Visit RealtorsFCU.org to learn more and join online — just enter promotional code VA11.
www.VARealtor.com
Property managers — your conference awaits This year’s Property Management Coalition Conference (one of VAR’s most popular events) is looking good. Darned good. We’ve got top-rated presentations from the likes of keynote speaker Melissa Prandi (bestselling author of The Complete Idiot’s Guide To Success as a Property Manager), FutureLaw’s Chip Dicks, and prominent real estate attorney Grimes Creasy. You can learn everything from the basics (escrow accounts and fair housing law) to the latest (going paperless). Pick up risk management tools from fair housing to building codes — and some of the nittygritty like how to successfully evict a tenant and choosing an HVAC system. Whether you’re a rookie or a pro property manager, this is the must-attend event of the year — and the best way to stay up to date — and out of trouble — in your business.
The details: November 17—19, 2010 Omni Charlottesville Hotel • Full Registration (on or before November 10) is $179 online; add $20 if you want to use paper mail or fax, or add $50 to register on site. • One-Day Registration (on or before November 10) is $89 online; add $20 if you want to use paper mail or fax, or add $50 to register on site. • Casino Night is $40 on or before November 10, $50 on site. For more information and to register, just go to VARealtor.com/PMCC.
New VAR forms: Bigger is better Bigger, you said. And who are we to argue? By popular demand, we’ve enlarged the font in the fillable fields in Residential Lease (form 200) and Residential Contract of Purchase (form 600). You can download the revised forms (free, natch) in the VAR Forms Center at VARealtor.com/StandardForms. (The font size is the only change.)
The latest episode of The Lem & Blake Show is now available for your viewing pleasure at VARealtor.com/ lemblake6, where VAR attorneys discuss earnest money deposits. Volume 17 ● Issue 5
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quickhits Legal department changes
Short sales
Fastest (and slowest) short sale servicers Lenders are taking heat from buyers, sellers and Realtors® for the length of time and complexity involved in going through a short sale. You've probably got your hunches about which banks are the worst to deal with and which ones take the most time to complete a transaction. Well, HousingWire recently published a list that ranked some major mortgage servicers by how quickly they conduct short sales. Here's the scoreboard: Quickest: GMAC, averaging about 6 months per transaction 2nd fastest: CitiMortgage, about 7.5 months per transaction 3rd place: Wells Fargo, roughly 8 months per transaction Last: Countrywide (Bank of America) at 13 months per transaction Any surprises? Join the discussion at VARbuzz.com/go/fastandslow.
In coming weeks, you’ll notice a number of changes and improvements in the services you receive from VAR’s Legal Department. These enhancements will allow us to provide better and more timely service. Some major changes you might notice: • The operating hours for the Legal Hotline are 10 a.m. – 4 p.m. • Our pledge is to return any Legal Hotline call within 24 hours. • All Legal Hotline questions (even those received in writing) will be answered by telephone. There are many more changes, including new staff and new resources. See it all at VARbuzz.com/go/legalchanges.
A reinvented convention Our goal for 2010 was to create the can’t-miss event of the year for Virginia Realtors®. The result is The REal Show, our reinvented Convention & Expo. We asked, you talked, and we listened — and the REal Show was built on your suggestions. First of all, there’s no more thinking small. We’ve made a three-year commitment to Virginia Beach — not only will that make planning easier for you (and us), the big, beautiful Virginia Beach Convention Center gives us room for more classes, more networking, more exhibits, and of course more Realtors®. If you’re reading this at the Virginia Beach Convention Center, 6
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just look around. We don’t have to tell you that the REal Show is unlike any other VAR convention you’ve ever seen. But if you didn’t attend, and you’re reading this at home, you really missed out. The program is bigger and better — and more in tune with what our members told us they want and need. Not only do we have more sessions, more CE, and more specialty classes than ever, we’ve also separated the VAR governance meetings so attendees can choose which and whether to attend. Then there’s the expo, with exhibitors from all over the state — in fact, there are more of them in 2010 than ever. Even better, there are mini educational sessions in the Expo itself, not to mention all
sorts of contests, incentives, and giveaways. Part of thinking big is thinking about the little touches that make the show easier and more enjoyable for attendees. This year we’ll have free hotel shuttles, an on-site Realtor® store, wireless Internet access just about everywhere, and a beach party — Realtor® style — Saturday night. VAR’s Convention & Expo is our premier event of the year, and for 2010 we made it the best one yet. l
www.VARealtor.com
Working with VAR
Lend us your expertise Now’s your chance to volunteer with VAR. Need a reason? We'll give you three (and it starts with making more money): It’s simple, really: The more you learn, the more you’ll earn. Anyone can read news, blogs, and, well, Commonwealth. If you want to stay on the leading edge, you need to connect with your peers from across the state. And that’s why volunteering with VAR works. When you join a VAR committee or workgroup, you hear and talk about stuff that will affect your business — before the competition does. VAR leadership appoints only the most qualified brokers and agents. Competition for seats is tough, so the quality of people on VAR's committees is top-tier. One more reason: When you volunteer with VAR, you get to represent your local area in policy decisions
that affect you and your clients. It’s the only way to insure that your local area is heard during VAR policy deliberations. (And if you're a broker, you owe it to yourself to urge your agents to volunteer with VAR. Why wouldn't you want an army of more knowledgeable, better trained, better networked agents?) Go to VARealtor.com/Volunteer and sign up to work with VAR. We’re waiting for you. l
“Let it crash.” The buzz on VARbuzz “Housing Woes Bring a New Cry: Let the Market Fall” was the headline of a New York Times story. The gist: Government programs aren’t working well to restore the housing market; could letting the market crash be the best long-term solution? Virginia Realtors® had some strong opinions they shared on VARbuzz (VARbuzz.com/go/crash): • Allowing the free market to work is always a good idea. It is working against the order of nature to try to direct the housing market. — Karin Whitley • ‘[A]llowing the free market to work’ [...] hurts homeowners more than anyone else, and that’s really too bad. But unfortunately it seems there’s not too much else that can be done. — John Clark • [A recovery] will take many months and probably years to accomplish and can only be initiated by a demand created by real life situations and not artificial stimuli. —Joe Vita There’s more, and you oughta join in the discussion. Unless, that is, you don’t have an opinion.
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legallines blake hegeman
Intelligent agents Agency is a broad and complicated topic that can be confusing. Below are a few questions and answers that will address some of the most common misconceptions we hear on the Legal Hotline.
“No realistic opportunity for confusion”
Q.
I am representing the seller; do I have to disclose this fact to a buyer who is being represented by a buyer’s agent?
A. In Virginia, a licensee must disclose that he represents someone
only to an unrepresented party that he is dealing with. This leads to a few conclusions: (1) In a co-brokered deal, where both parties are represented by different firms, no agency disclosure is required by law. This is as it should be. If I, as buyer, have hired an agent from Firm A to represent me, how could I reasonably believe that an agent from Firm B represents me, especially when the chances are good I will never deal with the agent from Firm B? It’s really this simple: If I have hired agent Bill from ABC Realty to list my house, I don’t need agent Sally from XYZ Realty to give me something in writing telling me she doesn’t represent me, or that she represents the buyer. (As to this latter disclosure, she is obligated to my agent to disclose that she is acting as a buyer agent. )
“
In all cases of dual and designated agency in Virginia, both clients must sign a disclosure and
“A good policy is the key”
Q.
An agent has decided to leave her firm. Does she have the right to contact the firm’s clients in an effort to induce them to come with her before she notifies the firm ? A. While an agent at the firm,
she has a fiduciary duty to the firm to act in its best interest. It is improper for an agent of the firm to solicit firm business for another company while engaged by the firm. A prohibition against such action should be written into brokerage office policies and independent contractor agreements; firms add teeth with a provision that says if an agent solicits the existing clients of the firm while still engaged, she will forfeit all commissions due from such clients’ transactions. A good policy is the key.
consent to the representation.”
(2) This means that single agency disclosure is required in only three situations: (i) subagent to unrepresented buyer, who might well be confused about who the selling agent represents; and if it is the seller, the selling agent must be sure the buyer knows that; (ii) buyer agent to FSBO, because upon agreeing to let an agent show his house and agreeing to pay a fee if there’s a deal, the FSBO might think he’s just hired an agent – the buyer agent must be sure the FSBO knows he works for the buyer; and (iii) listing agent to unrepresented buyer customer. In all cases of dual and designated agency in Virginia, both clients must sign a disclosure and consent to the representation. However, in single agency situations disclosure is required only when one party is represented and the other is not. When both have hired agents and are represented, there’s no realistic opportunity for confusion, and thus no need for disclosure. All agency disclosure required by law in Virginia can be accomplished by use of VAR Form 100, available online at VARealtor.com. 8
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legallines “The firm is not obligated to do so”
Q.
Listing agent Joe is leaving Firm A and going to Firm B, and the sellers want to transfer their listing from Firm A to Firm B. Can they do that? A. Firm A owns the listing and is not obligated to
release the sellers simply because Joe is leaving. Sellers may request that Firm A release them from the listing, but the firm is not obligated to do so unless the listing agreement specifies that the sellers will have the right to terminate the listing if Joe leaves the company. Even if Firm A agrees to release the sellers from the listing, Firm B would have to agree to enter into a listing. The listing can’t just be “transferred” from A to B without
all parties’consent, including the sellers (who might want to leave Firm A now that Joe is gone, but don’t want to list with Firm B for whatever reason). Even if Firm A doesn’t agree to release the sellers from their listing, the sellers may unilaterally remove the firm’s power of agency and right of sale and demand that the firm remove the property from the MLS. Therefore, if the sellers say, “Joe’s gone, please remove our listing from the MLS,” Firm A must comply. However, this action would in all likelihood be a breach of their agreement with Firm A, entitling it to damages as set out in the listing agreement or at law.
“The public will not know they are dealing with a professional”
Q.
An agent in my office is selling his own home and has heard that he doesn’t have to use the Owner/Agent sign anymore. Are Owner/ Agent signs still required? A. The policy of the REB on this issue is that the public has a right to
be informed if they are dealing with a real estate professional on the other side of the deal. So let’s assume a licensee is selling his own property. Suppose he has listed his property with a licensed real estate brokerage firm. If so, the firm’s ads will have its name displayed, and the public will know a real estate professional is on the seller’s side. In these cases, the signs do not need to say “Owner/Agent” or the equivalent. Suppose the owner is not listing the property with a firm. Now all signs will be the equivalent of FSBO signs, and unless they and the ads give the appropriate notice, the public will not know they are dealing with a professional. Thus, the signs/ads must make that clear. This would also be true if the of the agent’s personal advertising and signs done outside the firm, even if the property is listed. So, in the usual situation, if it’s listed the signs do not have to say “Owner/Agent. ” However if not listed, all signs and ads have to have this disclosure. Also please remember that in all cases, the contract must contain the disclosure.
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www.VARealtor.com
NEW NUMBER!
VAR Legal Hotline (804) 622-7955 Monday through Friday, 10 a.m. – 4 p.m. The VAR Legal Hotline is a free, members-only benefit for brokers. You can receive answers to questions about Virginia real estate law, and timely information on legal and regulatory issues concerning the real estate industry. The Legal Hotline provides legal information, not legal services. You should consult your attorney if you need representation or advice. You must register for the Hotline before you can call. Registration is free and quick. Go to www.VARealtor.com/legalhotline; you will need your NRDS ID number.
Who can use the Hotline?
“Routine to the transaction”
Q.
Does delivery of a property owner’s association packet (POA) to the buyer agent amount to delivery to the buyer?
A. Yes, we have the authority to accept documents that are routine
to the transaction on behalf of our clients. For example, would anyone argue that delivery of the buyer’s loan approval, notice of loan rejection, inspection report, executed offer, lead paint inspection, disclosure statement, kick-out notice, or any of another dozen types of documents would not be effective if delivered to the agent? The heart of agency is that the actions of the agent taken within the scope of the agent’s authority are binding on the client. However, if the client withdraws or withholds its authority from the agent to receive a certain document on the client’s behalf, and this is communicated to the other side, then that notice is effective, and the delivery would have to be made to the client. Why? Because an act performed outside the scope of authority is not effective to bind the client. l
Legal Lines is written by VAR Associate Counsel Blake Hegeman. Please note that answers to Legal Lines questions are informational only. Consult your own legal counsel for legal advice. You can find more Q&A from the archives of our Legal Hotline in our Legal Resources Center at VARealtor.com/legalresources.
Volume 17 ● Issue 5
• You must be a principal or supervising broker.* • You must be a VAR member. • You must have registered for the Hotline (see above). • You must have your NRDS ID number available when you call. (* Each office can have one other person designated by the principal broker for Hotline access.)
E-mailing the Hotline You can e-mail your questions to hotline@ VARealtor.com. • Responses will be by phone; we no longer provide written answers to Hotline questions. • You must include your full name, phone number, and NRDS ID. We cannot respond to messages that do not include all three. • We will try to respond within 24 hours, but response time depends on Hotline activity.
Not a broker or member? If you aren’t eligible to use the Hotline, you can browse and search our Hotline archives at www.VARealtor.com/hotlinearchive and find more legal and risk management information in VAR’s Legal Resources Center at www. VARealtor.com/legalresources. You will need your NRDS ID number to log into the site.
Questions? If you have questions about the Hotline, contact VAR at (800) 755-8271 or (804) 264-5033, or by e-mail at info@VARealtor.com The VAR Legal Hotline should not replace your own legal counsel. We will not answer questions on matters unrelated to real estate or real estate brokerage, nor can we help with pending arbitrations.
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lifelessons Andrew Kantor
Repeat offenders Realtors® who neglect Virginia real estate law can find themselves in the crosshairs of the Virginia Real Estate Board, facing punishment ranging from a small fine to loss of their license. They can be cited for small things or large, including, simply, “Unworthiness & Incompetence.” Here are a few real-world examples taken from the recent actions of VREB. These narratives are based on the Board’s official findings and do not necessarily reflect reality; participants may disagree with VREB’s findings and version of events as well. They are provided solely as examples of Board actions. All the names have been changed.
Fill in the blanks Bob ran his own property management company. He had been working with a client for several months, trying to rent out a property but without luck. His client was looking to purchase a home in Arlington, but in order to do so would need to show proof of income from the rental property. The client, upset, explained this to Bob in an e-mail. Bob quickly responded: “If you only need to show something to the bank, I can send you a blank lease. They never check these things, so just fill it out with anything. It’s not as good as having a tenant, but if it’ll help you get the house then I’m willing to do it. People do it all the time.” The client recognized that this was a Bad Idea, and contacted VREB. Bob admitted to making the offer, but said it was simply meant to calm his client so they could discuss a better game plan. The Board didn’t accept that.
“
Bob quickly responded: “If you only need to show something to the bank, I can send you a blank lease. They never check these things, so just fill it out with anything.
Here we go again
During an inspection in March, some of the tenant’s property was damaged. While Bob and Lucy discussed who should be responsible, the tenant sued. Lucy said she would appear in court, but didn’t; the tenant won a default judgement in the amount of $1,145 in June. Between March and June, the tenant had dutifully paid her rent of $950 per month. Bob worked with the tenant and agreed to settle on Lucy’s behalf for $950. He refunded the June rent payment. Lucy complained to the board that Bob had no right to do so. Bob responded that, according to the terms of the property management and exclusive rental agreement he had with Lucy, he had a first priority security interest in the rent payment. He believed it was his duty to use it to satisfy the court’s judgment. The Board did not agree.
Less than a year after paying his fine and being put on probation, Bob found himself in front of VREB again. He managed a rental property for its owner, Lucy.
For failing to exercise ordinary care by refunding the rent payment without the permission of the landlord,
Bob was fined $1,150, put on probation for two years, and required to complete eight hours of continuing education pertaining to broker management.
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Bob was fined $500 and had his license suspended for three months. The Board, however, waived those penalties in exchange for Bob’s reporting to the Board quarterly and attending four hours of continuing education related to property management.
One more chance? Larry was a real estate agent; Sid was his broker. Larry was called before VREB for practicing real estate while his license was inactive. At that hearing, Sid appeared on Larry’s behalf, begging them not to revoke Larry’s license — Larry, it seems, was one of the firm’s top producers as well as a mentor to newer agents. The Board agreed to put Larry on probation with Sid supervising him. Sid would report on Larry’s behavior quarterly for two years — in February, May, August, and November. Sid filed his first report in February. Larry, he wrote, was doing fine. But a couple of months later, in April, Sid received several e-mails from Victoria, who claimed to be a client of Larry’s. She said that Larry had cheated her out of $4,500. Sid asked Larry about them, and Larry said it was just a scam. Sid agreed that the messages looked suspicious. But they were real, and Victoria filed a complaint with the Board. In June, the Board told Sid about the complaint and asked for more information. And in August the Board reminded Sid that he had not sent in his quarterly updates on Larry. Sid promptly sent those in; Larry was still complying with all the Board’s regulations. He did not mention the complaint. The Board investigated it. In September, Larry admitted that yes, he had stolen Victoria’s money, forged her signature on loan documents, and doctored evidence he sent to the Board in response to the complaint. Sid continued to plead on Larry’s behalf with the Board, saying (among other things) that Larry was overworked and was now getting help with his workload. In November he submitted his quarterly Volume 17 ● Issue 5
report; Larry, he said, was still in compliance with all the Board’s regulations despite everything that had happened. The Board didn’t agree. It revoked Larry’s real estate license. Then it turned its attention to Sid. After considering the events, the Board fined Sid $7,500 for “failing to act as a real estate broker or salesperson in such a manner as to safeguard the interests of the public.” It revoked his broker’s license and replaced it with a salesperson’s licence, and it ordered him to complete eight hours of continuing education on broker management and supervision. l
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Need a reason to volunteer your time? It’s simple, really: The more you learn, the more you’ll earn.
If you want to know more than your competitors, it’s simply not enough to read the news, blogs and (shameless plug) Commonwealth magazine — anyone can do that. You need to make bigger commitment: to dive deep into discussions with your peers and discover tomorrow’s issues before they become today’s issues. And that’s why volunteering with VAR works for you. When you volunteer with VAR, you hear and talk about stuff that will affect your business — before the competition does.
Volunteer at the VAR booth (booth #215) or online at www.VARealtor.com/Volunteer
formfactor Blake Hegeman
Using the Equal Housing Opportunity logo I noticed that VAR forms contain the Equal Housing Opportunity logo; do I have to include it on all of my forms and advertisements? No, you are not required by federal or state law to include the Equal Housing Opportunity logo on forms or advertisements — but you absolutely should! The Virginia Fair Housing Office provides helpful guidance about using the logo at the DPOR website. It advises that “[T]he Fair Housing Logo should appear in all advertisements. Using the logo creates a presumption that you’re trying to follow the fair housing law.” It goes on to list fair housing policies and practices that its investigators will consider as evidence of compliance with the prohibitions against discrimination in advertising under the fair housing law. The first factor listed is use of an Equal Housing Opportunity logo, statement, or slogan. Please note that if you elect to use the logo, it must be used consistently; selective use could be considered discriminatory. l
Forms — they’re the bread and butter of a deal. They’re full of fine print and legalese, and not everyone “gets” the details. And that often ends up as a call to our Legal Hotline. (Shameless plug: (804) 622-7955.) So we asked our intrepid associate counsel (read: lawyer), Blake Hegeman, to take one of the forms the Hotline gets the most questions about and illuminate it for us.
They’re all available, free for download, at www.VARealtor.com/ standardforms.
The Letter of the Law Use of equal housing opportunity logotype, statement, or slogan. All advertising of residential real estate for sale, rent, or financing should contain an equal housing opportunity logotype, statement, or slogan as a means of educating the home seeking public that the property is available to all persons regardless of race, color, religion, sex, handicap, familial status, elderliness, or national origin.
The choice of logotype, statement, or slogan will depend on the type of media used (visual or auditory) and, in space advertising, on the size of the advertisement.
From “Advertise Without Discriminating,” Virginia Department of Professional and Occupational Regulation
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Now see here... H 8 7 4
16 SEPTEMBER/OCTOBER 2010
www.VARealtor.com
by Andrew Kantor
Once upon a time, all a real estate agent needed to tell her client was how far from the hunting grounds the cave was. Times change. Today, there’s a lot more to worry about — lead paint, Chinese drywall, wastewater, and a host of other stuff. Virginia is a caveat emptor state — it’s up to the buyer to beware. There’s little sellers have to disclose. The seller is required to provide a disclosure statement that in essence says, “Beware — and think about this list of items before you buy this house.” Those “red flag disclosures” alert buyers to certain issues they might want to consider before buying a home. With a handful of exceptions (see the box, “See no, hear no, speak no”), it’s up to the buyers themselves to decide what bears investigation. As-is is the phrase of the day. But let’s be clear: Under Virginia law, you have no obligation as a real estate licensee to undertake any duties with respect to the items on the Residential Property Disclosure Form. Virginia law only requires buyers’ agents to “[d]isclose to the buyer material facts related to the property or concerning the transaction of which the licensee has actual knowledge.” Likewise, you have no duty under the Realtor® Code of Ethics to discover anything about a property other than adverse factors reasonably apparent to someone with a real estate professional’s expertise. The Code Volume 17 ● Issue 5
“does not impose upon the Realtor® the obligation of expertise in other professional or technical disciplines.” In other words, you’re a Realtor®, not an engineer. But here’s the rub: The law also says that if you don’t have a duty, but you undertake it anyway and make a mistake in performance of that duty, you can be held liable for your mistake — even though you had no legal obligation in the first place. That means buyer’s agents have to be smart, careful, and observant when showing homes to clients and discussing the inspecting process. In short: Be careful in what you agree to do for your client. You don’t have to inspect for asbestos, or the remains of a meth lab, or whether a property is in a dam break inundation zone. But you want your clients get the information they need to make an informed decision about the property they are considering buying. So what if your client asks, “Is this mold?” or “Is the house in a resource protection area?” or “Do you think there’s an old oil tank buried here?”? Here are some resources you might want to point them to.
The Residential Property Disclosure Statement lists several environmental issues that potential homebuyers might be concerned with. But there are other issues that aren’t mentioned in the RPDS, yet a buyer might want to look into.
Specifically mentioned on the RPDS: Dam break innundation zones Stormwater detention facilities Wastewater systems
The Chesapeake Bay Preservation Act Historic districts Sex offenders
Not listed on the RPDS: Meth lab operations Asbestos Underground oil tanks Limestone and karst Chinese drywall
SEPTEMBER/OCTOBER 2010 17
Hire an expert. Meth residue is something you don’t want to mess with.
Meth lab operations Once the chemical residue from a methamphetamine lab makes it into the walls, floors, and air ducts of a building, it ain’t coming out. That stuff is permanent. And living there could mean suffering from a list of health issues — breathing trouble, skin problems, and migraines for starters. If your client is interested in finding out whether the property has ever been used as a meth lab, you can suggest he check out the following: • DEA’s “National Clandestine Laboratory Register” — a list of drug-lab seizures; Virginia’s page is at www.justice.gov/dea/seizures/ va.pdf. It lists properties where a drug operation has been busted. But be warned: The list is far from comprehensive. Just because a home isn’t listed doesn’t mean it wasn’t a lab. • Contact the local police department to get information about the property.
• Have the property tested. A simple do-it-yourself kit like SKC’s MethAlert kit (methwipe.com) is a start. It costs $99 for a dozen tests, and the results are available instantly. Inspection Perfection also offers a mail-in test (inspectionperfection.com). Two kits are $15, but they need to be mailed back in and your client will have to wait for the results. (Our lawyers want you to know that VAR is not suggesting or endorsing either company. They’re two whose names are mentioned on various Realtor® message boards and websites. Do your own research before recommending them — or anyone.) • Hire an expert. Meth residue is something you don’t want to mess with. Your client can find an industrial hygienist through the Fairfaxbased American Industrial Hygiene Association (aiha.org).
Asbestos
Some things, like a proper asbestos cleanup, require professionals and professional gear.
18 SEPTEMBER/OCTOBER 2010
Asbestos fibers are a known carcinogen — right up there with cigarettes. It’s a fire retardant and a darned good one, which is why it’s installed in so many places. And properly installed it’s benign, but once it starts fraying or flaking, particles get into the air. If you breathe them in, you might be in for a world of hurt. Realtor® Lorna Hall of MKB Realtors in Roanoke described losing a sale thanks to asbestos: “As part of the contract, the purchasers asked to have all asbestos removed,” she said. “We went to do our walkthrough and there were large bags of asbestos sitting in the middle of the rooms. The wife was pregnant and they flew out of that
house and refused to close on it.” Asbestos can look like cement, “cotton-candy,” or wrap-around insulation. Unfortunately, to an untrained eye it can be difficult, if not impossible, to identify. For information on how to find out whether the property has asbestos, you should suggest to your client that she call in a contractor who’s licensed to work with the stuff. She can also utilize the DPOR license-lookup site (VARbuzz.com/go/licenses). Put an asterisk (*) in the Name box, tick the box “Asbestos Individuals,” and hit “Search Licenses” to see a statewide list. (Add a ZIP Code for a local list.)
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Dam break inundation zone Having your home washed away in a flood can be annoying — and surprising. Just ask the folks around Lake Delhi, Iowa. Or look up “Johnstown Flood.” And many of Virginia’s dams are privately owned and unregulated. The 2009 Dam Safety Act, though, requires dam owners to map inundation zones and file that information with the Virginia Department of Conservation and Recreation and local governments. But Robert Bennett, director for DCR’s dam safety and floodplain management division, said that of the more than 600 registered dams in Virginia, only about 5 percent have had inundation zones mapped. The rest will be added piecemeal, as those dam owners renew their permits. For information on how to find out whether the property would be affected by a dam, you can suggest that your client contact the appropriate local government agency or the Virginia Department of Conservation and Recreation.
Stormwater detention facilities Many properties in urban or suburban areas have some kind of stormwater management system, whether it’s a large and complex detention/retention facility, or simply a ditch that carries runoff away. A buyer may want to know what it is and who’s responsible for it. If it’s a large facility managed by the city or county, no worries. But if individual homeowners are responsible, your client will want to know exactly what that means. Is it just a matter of keeping a particular ditch clear of debris, or is there a detention pond that will need maintenance? Is the property part of a homeowners association that will collect a hefty fee every few years to maintain it? The regulations vary from locality to locality, and development to development. To find out how the stormwater is controlled on the property, suggest your client contact the local government office (county, city, or town) in charge of stormwater regulations, and find out how the property’s runoff is handled and who’s responsible. Volume 17 ● Issue 5
Wastewater system Many properties are not connected to “city water,” which means wastewater goes to an on onsite sewage system. And those systems are subject to regulations and may well require maintenance. Septic systems can be finicky. Too much indigestible stuff (coffee grounds, cat litter, grease or oil) can clog it. They need to be pumped out (eew!) every three to five years. And pipes leading to and from the septic tank can get crushed if an old owner drove over the septic field. While most real estate contracts in Virginia require the seller to certify that the septic system and pump are in working order and compliant with the law, your client may choose to have it checked for any problems beforehand, if only to understand what kind of maintenance is required. For the details on a property’s septic system (or alternative onsite sewage system), you can suggest your client call in a dedicated septic system expert — DPOR calls them “onsite sewage system professionals” — and they can be found on the DPOR license-lookup site (see “Asbestos” above).
The yellow dots are homes. The blue is the dam innundation zone. Won’t your clients want to know that?
Septic systems can be finicky. Too much indigestible stuff (coffee grounds, cat litter, grease or oil) can clog it.
SEPTEMBER/OCTOBER 2010 19
Underground oil tanks
A seeping tank, says the EPA, can present other health and environmental risks, including the potential for fire and explosion.
After a decade or two, underground oil tanks can rust — and sometimes leak.
20 SEPTEMBER/OCTOBER 2010
Oil tanks corrode over time. After a decade or two, many of them can begin to leak. Leaking oil can contaminate the groundwater and make its way to nearby streams. The EPA warns of the potential for contaminating groundwater and, worse, drinking water. A seeping tank, it says, “can present other health and environmental risks, including the potential for fire and explosion.” The Virginia Department of Environmental Quality considers the owner of the property at the time a leak is reported to be responsible for any leaks. Realtor® Dickie Roe of Long & Foster in Roanoke often handles listings in one of the city’s wealthiest neighborhoods. He once helped negotiate the sale of a fine home on a prestigious avenue. At some point, after the new owners had lived in the home for a time, they decided to install a sump pump in the basement. Eventually, Roe said, “A little trace of oil, just barely noticeable, was visible in the water.” The culprit was a previously undetected underground heating oil tank. “It had probably been there since the 1930s. I’m sure nobody knew about it,” he said. “The house had long ago been converted to natural gas heat.” Total cost to remove the old tank: about $50,000. Luckily the Virginia Petroleum Storage Tank Fund — funded by a sixth-tenths-of-a-cent tax on fuel — paid all but $500. There are two ways to test the integrity of an underground storage tank: test the soil around the tank, and pressure-test the tank itself. Neither is a big deal. The DEQ, in fact, has a list of in-state contractors who can do tank testing at www.deq.state. va.us/tanks. (Your client should click
“Contractors & Consultants.”) The big deal is if they find the tank is leaking. In that case, the tank either must be removed or drained and filled by a firm specializing in that sort of thing. In most cases the Storage Tank Fund will pick up the tab, but that’s not guaranteed. And remember, older buildings that have gas heat now probably didn’t always. When considering one, Jeff Shawver, a building commissioner in Roanoke, suggests having a potential buyer look around the house and in the basement for any pipes or fill caps that go nowhere. (Of course, he can simply ask the seller, “Where was the fuel tank?”) If the building was converted from oil to gas, your client may also want to ask about the permit for replacing the furnace. If an underground storage tank is taken out of service, a permit will indicate whether it was properly removed or filled in place. For information on underground storage tanks, you might suggest that your client contact one of the list of instate contractors maintained by DEQ who can do tank testing at www.deq. state.va.us/tanks. (Click “Contractors & Consultants.”)
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Limestone and Karst Some parts of the state — notably Loudoun and Clarke counties and parts of the New River Valley — are composed of limestone. It’s a porous rock that is eaten away by rainwater. That results in several things: giant caverns (think Luray), sinkholes, and rock fissures. Sinkholes sound dangerous, but, as Christine Windle, director of governmental affairs & communications for the Dulles Area Association of Realtors® pointed out, “Not one structure [in Loudoun County] has ever fallen into a sinkhole.” Fissures are more subtle. They can allow wastewater and runoff on the surface to go directly into the water table, rather than slowly permeate through the soil where natural processes help clean it. Although there isn’t any evidence of water contamination, Loudoun County officials have designated about 14,000 acres as a “limestone overlay district” where growth is restricted … just in case. Within that LOD, anyone planning to do any serious digging (for a swimming pool, say) requires a geophysical study to be done to check for sinkholes, and to limit development
to prevent contamination of the water supply. There are other rules as well, such as requiring all new development to have communal water and sewage systems, not individual wells or septic fields. For information on whether the property is within the LOD, suggest that your client contact Loudoun County and to learn current development restrictions. The county has a Web page devoted to it, including a map, at loudoun.gov/limestone. Even more detail is available at the Loudoun County Geographic Information Service (www.loudoun.gov/weblogis). Choose “Environmental” from the drop-down list of Layer Groups, check the box next to “Limestone OD,” and click “Apply.” (The GIS is a fount of information about properties. Your client can play around with the various layers.) Oh, and note that there is a lawsuit pending by a Loudoun real estate broker that hopes to stop the county from creating the LOD. That suit probably won’t be resolved until at least 2011, however.
The danger of overbuilding on limestone isn’t so much sinkholes as it is groundwater contamination.
Volume 17 ● Issue 5
What the lawyers advise The purpose of this article is to give you resources you can in turn give to your buyer clients. But, remember, you do not have a duty under Virginia law to do these things for your buyer client. VAR advises you that you should provide the resource information to your buyer client, and let your buyer client make the inquiries into these various matters. The Residential Property Disclosure Statement is a “red flag” disclosure to the buyer from the seller and is substantially different from the old “Disclaimer Statement” that was prevalent in residential real estate transactions until VAR asked the General Assembly to change a law a few years ago. Under a “Disclaimer Statement”, the seller was not responsible to the buyer for “latent defects”; which are defects in the property that the seller knew about but did not disclose. One of the difficulties of the old law was that while the seller could hide “latent defects” from the buyer and incur no liability, the seller’s agent was responsible for “material facts” about a property, as well as “latent defects” — something that affects its physical structure, physical environment, or any improvements made to it – and was required to disclose them. With the new “Disclosure Statement” however, now the seller is liable to the buyer for disclosure of “latent defects,” which aligns the seller’s responsibilities with the seller agent responsibilities. —per VAR attorneys Chip Dicks, Jay DeBoer, and Blake Hegeman
SEPTEMBER/OCTOBER 2010 21
The Chesapeake Bay Preservation Act
Localities covered by the Bay Act Localities not covered by the Bay Act
The 1988 Chesapeake Bay Preservation Act limits development on property that can affect the Chesapeake Bay — the idea is to reverse the damage already done to the bay, and to prevent any more from occurring. The 84 localities covered by the Bay Act (see the map, left) have (or soon will have) restrictions based on the Act’s guidelines. Part of that means designating certain areas as resource protection areas and others as resource management areas. Properties in either resource protection areas or resource management areas have significant limits on the kind and amount of development that can occur on them. RPAs (which are typically near water — shorelines, wetlands, streams, and so on) are “no disturbance” areas. The only things you can build in an RPA are water-related structures like marinas and piers. RMAs allow limited development, with regulations covering the amount of ground that’s paved over, reducing runoff, getting wetlands permits before
land is cleared, and making sure any new development has an adequate drainfield for its septic system. If you have a buyer interested in land in any of the Bay Act counties — as well as Loudoun, which is considering regulations that mirror the Act — she’ll want to know if that land is either an RPA or RMA. Will the Bay Act limit what your client may want to do with the property? Suggest that she contact the local government and ask whether it’s covered by the Bay Act, and, if it is, whether it’s in a resource protection area or a resource management area. If so, make sure she is absolutely clear on any development restrictions prior to closing on the property. (To get yourself up to speed on the Bay Act, check out the AccomackNorthampton Planning District Commission’s handbook at VARbuzz.com/go/bayact or call (800) CHESBAY. Loudoun County’ s government also has a Web page devoted to the Bay Act, including links to a map of what’s covered: Loudoun. gov/chesapeakebay.)
Sexual offenders
There are more sex offenders out there than you think, as this map of Southwest Roanoke shows. 22 SEPTEMBER/OCTOBER 2010
No one with kids wants to live near a sex offender, registered or not. A sex offender doesn’t necessarily mean someone violent; the spectrum runs from the seemingly benign (middle schooler guilty of “sexting”) to potentially violent parolees. But not everyone is going to make the distinction; a sex offender next door is a likely turnoff to a buyer, now or in the future.
For information on local sex offenders, you should suggest your client visit the Virginia Sex Offender Registry at sex-offender.vsp.virginia.gov. Users enter a ZIP Code or choose a county or city; they’ll see where all the local sex offenders live or work, including details of the offenders and the crimes they committed. Your client can decide whether or how much he’s concerned. www.VARealtor.com
Historic district Roanoker Aubrey Hicks’s tin roof was leaking. He began to replace it with traditional shingles. But, because his home was in the city’s Old Southwest historic district, Hicks was forced to stop work. He needed approval from the city’s Architectural Review Board, which denied it. So for 10 months, Hicks’s roof remained half finished while he battled the ARB in court. Finally a judge ordered the city to issue the permit, calling its actions “arbitrary and capricious.” If a property is in a local historic district, there could be strict limits on
any changes or repairs — from the type of roof to the color of the door to the kind of windows. And remember, even a modern structure can be within a historic district. For information on local historic districts, suggest your client contact the local government. For information on individual buildings, the Virginia Department of Historic Resources maintains a list of properties that are considered to have historic value. It’s not the easiest site to use, but it should take your client but a few minutes to determine if a property is on the list. Visit VARbuzz.com/go/historic.
Chinese drywall Starting around 2008, some homeowners in new construction began to complain about foul odors, damaged appliances and wiring, and other problems — the source of which turned out to be drywall imported from China. Gases emitted from bad drywall not only made the homes uninhabitable because of the smell, it damaged plumbing, wiring, and air conditioners and other appliances; some homeowners reported respiratory problems. In Virginia, the Tidewater region was most affected by the defective drywall, although Marcia Meredith, a Virginia Department of Health spokeswoman, said there were also “isolated reports of homes built with Chinese drywall in Richmond, Williamsburg, and Loudoun County.” (Some of the homeowners, it turned out, were mistaken; their drywall tested fine.) Unfortunately, there’s no quick and simple test for bad drywall. A proper test takes two weeks to four weeks to complete. But there will likely be some signs. First is the smell — the stench of rotten eggs. The client or home inspector can also look for tarnished copper or silver, such as the coolant tubes on the back of an air conditioner, copper pipes under a sink, or the grounding plug (the “third prong”) on appliances. Bad drywall will often cause a black, powdery residue to form. Consider these three conditions: Built or remodeled between 2001 and 2008, smells of rotten eggs, tarnished copper or silver. Alone, none is necessarily an issue. But if two are true there may be a problem. Fortunately, relatively few houses in Virginia have been affected by Chinese drywall. What should you suggest if your client is considering one of those few? Find another house. (Seriously. There’s no way to fix the problem other than replacing all the drywall in the house — and potentially parts of the plumbing and electrical systems as well.) l Volume 17 ● Issue 5
What’s VAR doing? VAR is working with the governor and the General Assembly, led by Delegate Glenn Oder (R-Newport News), to develop legislation to address the Chinese drywall problem by creating a disclosure for homes identified to have it, but not to burden all of the residential real estate transactions in Virginia with unnecessary paperwork. Stay tuned as this measure moves forward in the 2011 General Assembly session.
VAR attorneys Chip Dicks, Jay DeBoer, and Blake Hegeman contributed to this story. SEPTEMBER/OCTOBER 2010 23
accessibletech ANDREW KANTOR
When less is more Technology can make so many things faster and easier, it’s worth taking the time to remember that the lowtech approach is often better. In fact, because so many people are using technological solutions, going non-tech can make you stand out in a good way. A very good way. Case in point: While working for a consumer magazine, I wanted to get our new Web site featured in USA Today, which at the time promoted a Site of the Day. Rather than e-mail the editor of the section, I sent him a handwritten note in a hand-addressed envelope. (I wasn’t coy. I explained my logic in the note — that I was sure he would open it.) He did, and we were featured in the paper two days later. Doing the thing that other people aren’t doing — that’s smart. Yes, it takes an extra effort, but that’s the point. People realize that.
Give yourself a hand Yes, e-mail is fast and wonderful and we all do it. In many cases it’s the best tool in the box. But not always. Which strikes you as more genuine and professional: the job applicant who e-mails a thank-you note, or one who sends something handwritten? (We won’t even talk about someone who texts or tweets it.) The answer is obvious. When speed isn’t crucial, paper works — usually better. You wouldn’t send a condolence by e-mail, would you? Use e-mail (or texting) when it makes sense. But when the rush is over and you’re sending a thank-you or other pleasantry, go with paper, envelope, stamp. In fact, if you really want to make an impression, hand write your note. So few people take the time to put pen to paper these days, it’ll be a pleasant surprise and a solid connection. You can get some beautiful blank notecards in lots of places, or get some custom made with your name or logo — check out stores like PaperDirect (paperdirect.com) and Zazzle (zazzle.com). Zazzle, in fact, will let you create custom US postage stamps. How’s that for personalization? Finally, even if you opt to type and print a letter, 24 SEPTEMBER/OCTOBER 2010
“
Print takes less effort to read and more to discard; e-mail is the opposite.”
make sure to sign it. In ink. By hand. Don’t leave the line above your name blank (!), and don’t use some generic script font and think it looks like a signature. Get out a pen.
Your paper, please Think about this: A) You get an L.L. Bean catalog in the mail. B) You remember that L.L. Bean has an online store. Which do you think you’re more likely to browse though — that print catalog in your hand or the website? Dollars to doughnuts you at least flip through the catalog. Print works. It works very well. It takes no effort to browse a piece of paper in your hands. Print is easier to read than to discard; e-mail is the opposite. So if you keep in touch with your clients even after closing (and you do, don’t you?), do it with paper … at least occasionally.
Postcard math A postcard costs 28 cents to mail. At Zazzle you get design your own — front and back — and get 100 of them for $70 including shipping. Total cost to send them to 100 clients: $98. Do it quarterly and it’ll cost you about $400 a year. But if you close single extra deal because of it, you’ll have earned it back in spades.
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accessibletech
“
Before you turn to technology to save some time or trouble, think about the benefits of not using it.”
E-mail certainly has its place; mass and automated mailings are useful tools, for sure. But so is the occasional just-keeping-in-touch message. On paper. Here’s another suggestion: Make it even easier on your clients. Don’t use an envelope. A postcard doesn’t need to be opened; it’s going to be read. It’s a perfect way to keep your name in your clients’ collective consciousness. Even a glanced-at postcard will do more than a deleted e-mail. (Content, of course, is a whole other issue. If you don’t tell people anything interesting, they’ll learn not to open stuff from you.)
Crystal clear Here’s a tip you may not want to hear — or one that may surprise you. We all know that Realtors® and cell phones go together like, um, Realtors® and cell phones. But if you can use a landline instead, do it. Cell technology is great, but let’s face it — it’s still not up to the quality of a landline. Ma Bell’s commercials never asked, “Can you hear me now?” Even without drop-outs and delays, a cell call from your car or the street is going to be noisy, while a call from your desk or home will (hopefully) be quieter and relaxed. Besides, you never know when the other person is thinking, “Why are you on your phone while you’re driving?” Of course there are situations where you need to talk to someone right now. And you’ll have those clients who expect their calls to be returned in two minutes, not 20. So use your judgment. But if you can wait a bit to get to a quiet place and a landline phone, do it. These are all subtle things: A message on paper, a handwritten signature, a clearer and quieter phone call. But they’re noticed and they add up. They convey sincerity and professionalism more than anything sent with bits and pixels can. 26 SEPTEMBER/OCTOBER 2010
Speaking of paper If you handle relos, the single best thing you can give a client is a high-quality printed street map. Folded ones are fine, but a book is better.
We’re in an era of astounding technological change — it’s easier than ever to get lots of information to lots of people in a fraction of a second. But before you turn to any of this wonderful technology to save some time or trouble, think about the benefits of not using it. You might find they’re greater than you expect. l
Political power We occasionally ask you to contact your local, state, or federal representatives to support or oppose some legal action. Here’s a tip if you don’t want to call: Fax them. E-mail is so easy that everyone uses it. It’s not even a dime a dozen. But a fax will stand out. (Of course, a short, snail-mail note will stand out even more, but one step at a time.) Back in the mid-’80s, I worked for a state senator in New York. He told me how he values messages: A photocopied letter represented the opinion of five constituents. A fax or printed letter counted for 10. Handwritten meant 20 people agree. And a phone call counts for 50. (One of my jobs was to do the math to get a feel for what his constituents wanted.) Keep it in mind.
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rpacreport GOLDEN R INVESTORS ($5,000)
As of August 27, 2010 the following REALTORS® and local associations have joined RPAC of Virginia as Major Investors. For more information on the value of RPAC and how your investment works to protect your business, contact Meredith Cox at mcox@VARealtor. com or (804) 264-5033. Or, if you want to get invested today, please visit rpacofva.com.
John McEnearney McEnearney Associates, Inc. Alexandria
John Powell Long & Foster Real Estate, Inc. Colonial Heights
GOLDEN R ASSOCIATION ($5,000) Dulles Area Association of Realtors®, Leesburg Fredericksburg Area Association of Realtors®, Fredericksburg Northern Virginia Association of REALTORS®, Fairfax Richmond Association of Realtors®, Richmond Roanoke Valley Area Association of REALTORS®, Roanoke Williamsburg Area Association of REALTORS®, Williamsburg
Charles Burnette Burnette Real Estate Sales Blacksburg
Billy Chorey Sr.* Chorey & Associates Realty Suffolk
Dennis Cronk* Poe & Cronk Real Estate Group Roanoke
John Dickinson Hall Associates, Inc. Union Hall
Joe Funkhouser Coldwell Banker Funkhouser Harrisonburg
Dorcas Helfant-Browning Coldwell Banker Professional Virginia Beach
Steve Hoover MKB, REALTORS® Roanoke
Thomas Jefferson, III* Joyner Fine Properties Richmond
Re/Max Allegiance Alexandria
Tom Stevens* Coldwell Banker Residential Vienna
Melanie Thompson* Century 21 AdVenture Realty Fredericksburg
Jack Torza* Long & Foster Realtors® Mechanicsville
CRYSTAL R ($2,500–$4,999)
Mike Minnery Re/Max Allegiance Woodbridge
Jane Quill Re/Max Presidential Fairfax
STERLING R INVESTORS ($1,000–$2,499)
Bob Adamson McEnearney Associates, Inc. McLean
Guy Allen One Stop Realty Woodbridge
* Hall of Famers have contributed a cumulative amount of at least $25,000 to RPAC.
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STERLING R INVESTORS ($1,000–$2,499)
Julia Avent Re/Max Allegiance Arlington
Deborah Baisden Prudential Towne Realty Virginia Beach
C.C. Bartholomew Long & Foster Real Estate, Inc. Manassas
Bob Barton Barton Real Estate Services Richmond
Mary Bayat Bayat Realty Inc Alexandria
Lee Beaver Keller Williams Realty Manassas
Gail Belt Keller Williams Realty McLean
Mary Ann Bendinelli Weichert Realtors® Manassas
Laura Benjamin Roanoke Valley Association of Realtors® Roanoke
Karen Bohlke-Enriquez Re/Max Select Hampton
Brad Boland Jobin Realty Reston
Candice Bower McEnearney Associates, Inc. McLean
Kevin Breen Coldwell Banker Elite Fredericksburg
R. Scott Brunner Virginia Association of Realtors® Glen Allen
Curtis Burchett MKB, Realtors® Roanoke
Robyn Burdett Re/Max Allegiance Reston
Chris Call AREAS Appraisers, Inc. Springfield
Dale Chandler Greg Garrett Realty Newport News
David Charron MRIS Rockville, MD
Pat Clark Long & Foster Roanoke South Roanoke
Vic Coffey Re/Max All Stars Realty Daleville
Billy Coons Realty Executives Virginia Beach
Patrick Cowne Long & Foster Real Estate, Inc. Manassas
Benton Downer Downer & Associates Charlottesville
Volume 17 ● Issue 5
SEPTEMBER/OCTOBER 2010 29
rpacreport STERLING R INVESTORS ($1,000–$2,499)
Mary Dykstra RE/MAX Valley Realtors® Roanoke
Sandee Ferebee Prudential Towne Realty Virginia Beach
Claire Forcier-Rowe Coldwell Banker Elite Fredericksburg
Virgil Frizzell Long & Foster Real Estate Herndon
Pam Frohman Keller Williams Realty Chesapeake
Karen Gaskins Rose & Womble Realty Chesapeake
Libby Gatewood Napier REALTORS® ERA Colonial Heights
Bill Gearhart Coldwell Banker Townside Roanoke
Charlee Gowin Prudential Towne Realty Virginia Beach
Arthur Grace Hunzeker & Lyon, PC Manassas
Lynn Grimsley Re/Max Peninsula Newport News
Kit Hale MKB, REALTORS® Roanoke
Margaret Handley M.C. Handley, Ltd. McLean
Lizzie Hernandez Re/Max Regency Manassas
David Hess Avery Hess Realtors® Dunn Loring
Tom Innes RE/MAX Commonwealth Richmond
Donn Irby Rose & Womble Realty Chesapeake
Margaret Ireland Weichert REALTORS® Gainsville
Betty Jasmund Coldwell Banker Elite Stafford
Jo Anne Johnson Westgate Realty Group, Inc. Falls Church
Sita Kapur Arlington Premier Realty LLC Arlington
Kathleen Kennedy Re/Max Regency Manassas
Patricia Kline Avery Hess Realtors® Springfield
Barbara Jean LeFon Rivah Realty LLC Montross
Contributions are not deductible for income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. The amount suggested is merely a guideline and you may contribute more or less than the suggested amount. You may refuse to contribute without reprisal and the National Association of Realtors® or any of its state associations or local boards will not favor or disfavor any member because of the amount contributed. 70% of each contribution is used by your state PAC to support state and local political candidates. Until your state PAC reaches its RPAC goal 30% is sent to National RPAC to support federal candidates and is charged against your limits.
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STERLING R INVESTORS ($1,000–$2,499)
Richard Limroth RE/MAX Valley REALTORS® Roanoke
George Lyons Long & Foster Real Estate Woodbridge
Scott MacDonald Re/Max Gateway Chantilly
Andy Mason Weichert Realtors® Mason-Davis Onancock
Shane McCullar Keller Williams Realty Alexandria
Glenda McDaniel Long & Foster Hales Ford Moneta
Susan Mekenney Re/Max Allegiance Fairfax
Dee Meredith Coldwell Banker Forehand & Company Lynchburg
John Meyer Re/Max Allegiance Alexandria
Tom Meyer Condo 1, Inc. Arlington
David Michalski Fairfax Realty, Inc. Annandale
Jay Mitchell Prudential Towne Realty Virginia Beach
Percy Montague Montague, Miller & Co. Charlottesville
Vicki Nellis Re/Max Allegiance Burke
Vinh Nguyen Westgate Realty Group, Inc. Falls Church
Boofie O’Gorman Long & Foster Real Estate Reston
Lee Odems Buyer’s Advantage Real Estate Woodbridge
Forrest Odend’hal Long & Foster Real Estate Manassas
STERLING R ASSOCIATION ($1,000–$2,499)
Susan Oh New Star Realty & Investment McLean
Volume 17 ● Issue 5
Ann Palmateer Prudential Towne Realty Chesapeake
Gwen Pangle 1757 Real Estate Company LLC Leesburg
Gail Penman William E. Wood & Associates Virginia Beach
Greater Augusta Association of Realtors®, Staunton Lynchburg Association of Realtors®, Lynchburg New River Valley Association of Realtors®, Christiansburg Southside Virginia Association of Realtors®, Colonial Heights Virginia Peninsula Association of Realtors®, Hampton Harrisonburg-Rockingham Association of Realtors®, Harrisonburg
SEPTEMBER/OCTOBER 2010 31
rpacreport STERLING R INVESTORS ($1,000–$2,499)
Lonnie Plaster Long & Foster Real Estate, Inc. Manassas
Tracy Pless Long & Foster Real Estate Reston
Anne Rector Long & Foster Real Estate Alexandria
Peter Rickert Coldwell Banker Residential Brokerage Alexandria
Thomas Rickert Coldwell Banker Residential Brokerage Alexandria
Zinta Rodgers-Rickert Re/Max Allegiance Fairfax
Henry Scholz Hall Associates Inc. Roanoke
Trudy Severa Long & Foster Real Estate Reston
Jean Siebert Siebert Realty Virginia Beach
Kimber Smith Prudential Towne Realty Toano
Cindy Stackhouse Century 21 Stackhouse & Associates Dumfries
Wes Stearns MO Wilson Properties Inc. Woodbridge
Suzy Stone Century 21 AdVenture Realty Fredericksburg
Thomas “Mack” Strickland, Jr. Strickland Realty Chester
Joe Sutliff Re/Max All Stars Realty Daleville
Crystal Sullivan Re/Max Peninsula Newport News
Trish Szego ERA - Elite Group Realtors® Fairfax
Richard “Dick” Thurmond William E. Wood & Associates Virginia Beach
Christine Todd Northern Virginia Association of Realtors® Fairfax
Karen Trainor Weichert REALTORS® Fairfax
Kevin Turner Century 21 All Service Bedford
Sandra Wagner William E. Wood & Associates Poquoson
Todd Wampler Wampler Realty, Inc. Daleville
Barbara Wolcott Prudential Towne Realty Virginia Beach
Mary Ann White Hometown Realty Prince George
William A. White Joyner Fine Properties Richmond
Jon Wolford Long & Foster Real Estate Springfield
Tony Yeh United Realty, Inc. Vienna
32 SEPTEMBER/OCTOBER 2010
www.VARealtor.com
rpacendorses RPAC endorses congressional candidates During every congressional race, Virginia’s RPAC trustees review the positions and voting records of the candidates — whether incumbents or challengers — to gauge their support of Realtors®. Their one consideration: the candidates’ voting record on real estate and property issues. (You may have other reasons to support one candidate over another, but RPAC is only interested in how the candidates stand on the issues that impact your business.) Realtors® are an influential and effective lobbying group because we conscientiously support elected officials who support our legislation.
While challengers to Realtor®-endorsed candidates may also back some of our issues, in order to remain effective, our friends must know that we will be behind them for the long haul. Virginia’s RPAC doesn’t fund candidates for Congress directly. The Virginia RPAC Trustees make recommendations to NAR’s RPAC Trustees, who in turn make the final decisions. For the 2010 general election, here are the congressional candidates Virginia RPAC has chosen to support and the (very basic) rationale behind each decision.
Rep. Robert Wittman (R-VA 01)
Rep. Glenn Nye (D-VA 02)
Rep. Bobby Scott (D-VA 03)
Rep. Randy Forbes (R-VA 04)
Rep. Bob Goodlatte (R-VA 06)
Congressman Wittman has supported more than two-thirds of the Realtor® legislation in the current congressional cycle (the best record of all Virginia Republican congressmen). He also cosponsored the moratorium on the implementation of Home Valuation Code of Conduct and voted to extend the homebuyer tax credit.
Rep. Nye supported more than 90% of Realtor® bills this session including the extension of the homebuyer tax credit.
Congressman Scott has been supportive of the Realtor® community, and goes out of his way to work with our members; he has supported most NAR legislative positions and serves on the House Judiciary Committee where he plays a key role in issues of private property rights and fair housing.
Rep. Forbes has shown himself to be a solid supporter on Realtor® issues such as the Affordable Housing Tax Credit and HVCC moratorium. Like Rep. Scott (above), he serves on the influential House Judiciary Committee.
A strong supporter on Realtor® issues, Congressman Goodlatte has cosponsored bills to ban banks from entering the real estate sector and to extend the homebuyer tax credit.
Rep. Eric Cantor (R-VA 07)
Rep. James Moran (D-VA 08)
Rep. Rick Boucher (D-VA 09)
Rep. Frank Wolf (R-VA 10)
Rep. Gerry Connolly (D-VA 11)
As minority whip, Rep. Cantor is in a strong position to support Realtors® in Congress. He has made himself very accessible to Realtors® on the local and national levels, and shows a keen interest in and understanding of our issues.
Congressman Moran has been a strong supporter of Realtor® issues, cosponsoring bills to ban banks from entering the real estate sector, establishing a Housing Trust Fund, and modernizing the Federal Housing Authority, among others. He consistently has an above average voting record on Realtor® issues.
Rep. Boucher has been solid supporter of NAR legislation. Among other things, he cosponsored bills on bankruptcy reform, limiting the span of industrial loan companies, implementing the moratorium on implementation of the HVCC, and extending the homebuyer tax credit. He also holds a key position on the Energy & Commerce Committee.
A strong supporter of NAR and VAR issues, Congressman Wolf is “always a champion for Realtor® causes” such as the ban on banks in real estate and the Affordable Housing Tax Credit. He worked to delay implementing new RESPA rules, and to get the government to stimulate the commercial real estate market as well.
Rep. Connolly has supported 100% of Realtor®-backed legislation in the current session, including the homebuyer tax credit; he also asked for more Fed involvement to limit damage from the commercial real estate crisis.
Who and where
Not sure exactly where “VA 09” is, or who represents your district? Head over to VARbuzz.com/go/reps for a map and guide.
Volume 17 ● Issue 5
SEPTEMBER/OCTOBER 2010 33
varbuzzcontest Here’s your chance to win a cool Creative Vado HD camcorder just for reading this magazine and visiting VARbuzz, VAR’s official blog. It works like this: Answer the questions below by reading this issue of Commonwealth. On October 11, go to www.VARbuzz.com. There you’ll read simple instructions (e.g., “Take the first letter of each word to spell out the answer” or “What’s the opposite of answer #3?”). That will give you the final answer and instructions for sending it in. There will be a deadline. We’ll take all the correct entries we receive by that deadline and draw one randomly. That winner gets the Vado. Simple, huh? Notes: This contest is only open to current members of the Virginia Association of Realtors®. Contest winners must skip two issues before they’re eligible to win again. All decisions about correct answers rest with VAR staff, and are final. Bribes are accepted but not acted upon.
This issue’s questions: 1. What three-letter agency runs the National Clandestine Laboratory Register? 2. What’s the three-letter acronym that describes about 14,000 acres of Loudoun County? 3. What three-letter language-services company offers a discount to VAR members for translating documents or phone calls? 4. NAR is now offering a new financial service for Realtors®. What are its three initials (i.e., the part after “Realtor”)? 5. What mortgage servicer did HousingWire say has the quickest turnaround time for short-sale transactions?
34 SEPTEMBER/OCTOBER 2010 www.VARealtor.com
contactvar
We’d love to hear from you
We’re online at www.VARealtor.com Our official blog is VARbuzz, at www.VARbuzz.com If you have questions, we’re ready to help. During normal business days, our receptionist is available from 9:30 a.m. to 3:45 p.m.
Our phone number is
(804) 264 -5033 For membership and dues questions Ask for Amy Hafer Membership Records Manager amy@varealtor.com
For questions about professional standards and the Code of Ethics Ask for Blake Hegeman, Associate Counsel blake@VARealtor.com
If you’re interested in marketing or advertising opportunities Ask for Amanda Rainsford, Marketing Manager amanda@varealtor.com
To reach our Legal Hotline Call (804) 622-7955* * You must register first at www.VARealtor.com/LegalHotline
If you’d like to have someone speak at your association or brokerage
To find out about conferences, seminars, and professional education
Ask for Lisa Noon, Vice President of Member Outreach lisa@varealtor.com
Ask for Glenda Puryear, Conferences Specialist or Lili Paulk, Director of Education glenda or lili @varealtor.com
If you need to know about professional designations Ask for Kim Martin, Specialties and Chapter Manager kim@varealtor.com
If you have comments or questions about Commonwealth magazine or our Web sites Ask for Andrew Kantor, Editor & Information Manager andrew@varealtor.com
DNCSolution, Do-not-call solutions Security code SC1795VR Liberty Mutual Home, auto, and renters insurance LLE Language Services Telephone interpretation and document translation Promotion code VARM08 Outstaffing, Staffing and payroll Pearl Insurance E&O, medical, life, and dental insurance Phone Tag, Voice to e-mail transcription Realtors Federal Credit Union T-Mobile, Wireless service UPS
(804) 249-5712 scott@varealtor.com
Ask for Meredith Cox, Director of Political Communications meredith@varealtor.com VAR 2010 Leadership Team
Cindy Stackhouse, GRI President Century 21 Stackhouse and Associates Prince William (703) 580-0880 c21cindys@aol.com
VAR Member Service Partners
TASC/BizPlan, Medical expense tax benefits
Our CEO is Scott Brunner
For information about RPAC
VAR Wireless Center Wireless plans and hardware Virginia Department of Motor Vehicles Realtor license plates Zipform, Electronic Forms Solutions
John Dickinson, CCIM, GRI President-Elect Hall Associates, Inc., Roanoke (540) 982-0011 jrdickinson@cs.com Trish Szego, CRB, CRS Vice President ERA-Elite Group, Haymarket (703) 359-7800 trishelite@aol.com John Daly, SFR Treasurer Rose & Womble, Virginia Beach (757) 486-8800 jdaly@roseandwomble.com John Powell, GRI, ABR, CRB, CRS Immediate Past President Long and Foster Real Estate, Colonial Heights (804) 520-5600 john.powell@longandfoster.com R. Scott Brunner, CAE Chief Executive Officer (804) 264-5033 scott@varealtor.com
Volume 17 ● Issue 5 SEPTEMBER/OCTOBER 2010 35
lastword SCOTT BRUNNER
Things they (apparently) don’t teach anymore Don’t wear a brown belt with black shoes. And vice versa. • How to add and subtract in your head. • Take off your ballcap indoors. •
Don’t show your boxer shorts in public. • Penmanship. • When
talking on a cell phone in a public place (an airplane, say), be quick and quiet about it. • There are (at least) two sides
to every story, and you may not be entitled to know both. • Subject/verb agreement. • Handwritten thank you notes. An e-mail just isn’t the same. • Look people in the eye, especially those in positions of authority. • How to make change and count it back. • The American Dream is not something the government owes you. It’s something you earn through hard work, patience and sacrifice. • Not to stop and gawk and scratch your backside in the middle
of the airport concourse (other places, too) when there are people walking behind you. • Praise in public, be critical in private. • Your kids are more important than your work. • You are almost never the exception to
the rule. • Discretion. •
Tip the waitress. She has a tough job. • The straps of your
undergarments should be covered by your outer garments. • The proper use of quotation marks. They’re not merely an alternative to underlining. • If the car beside you lets you merge, acknowledge it with a wave. • When you’re at a meal with others, turn your phone off and put it away. Ditto at committee meetings and church. •
Just because
you heard it on TV doesn’t make it true. • To feel genuine shame when the situation calls for it. • Reading broadens your perspective. • Funerals are occasions that demand dignity. Wear a tie, for goodness’ sake. • If some-
one needs a seat more than you do, give them yours. • Don’t chew gum in social settings. • The inherent risk in
Don’t complain to someone who can’t do anything about what you’re complaining about. • How to make introduc-
being a self-made man is that you may get the head too big. •
tions. • Perception is reality. • Flush. Please. • Excess almost always comes with consequences.
• In a social
or business setting, make others feel comfortable before you feel comfortable. • Stand to the right on an escalator. •
The
difference between needs and wants. • Think for yourself. • Treat other people kindly and courteously, not necessarily because they deserve it, but because you want to be the kind of person who treats other people kindly and courteously. • Respect — and seek to understand before you disparage — other folks’ opinions, especially where faith or politics are concerned. • Old people are not disposable. They’re worthy of
respect. And they have some great stories to tell. • Children hear — and see — more than you think they do. •
Know thyself. • And one
more: “They” — the ones who don’t teach this stuff anymore — are us. 36 SEPTEMBER/OCTOBER 2010
Scott Brunner is VAR’s (rather opinionated) CEO. E-mail him at Scott@VARealtor.com www.VARealtor.com