2013-06 Commonwealth

License-transfer changes (p. 4) • NEW LAWS FOR 2013 (P. 30) June/July 2013

A journal for real estate professionals published by the Virginia Association of REALTORS® • www.VARealtor.com

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EOE

firstword ANDREW KANTOR

Published by The Virginia Association of Realtors® The Business Advocate for Virginia Real Estate Professionals Mary Dykstra, ABR, CRS President Roanoke Bradley Boland President-Elect Reston Deborah Baisden, GRI Vice President Virginia Beach Bill White Treasurer Richmond Trish Szego, CRB, CRS Immediate Past President Haymarket Richard Lugg Interim CEO rick@VARealtor.com Amanda Arwood Vice President of Marketing & Communications amanda@varealtor.com Andrew Kantor Editor & Information Analyst andrew@varealtor.com For advertising information, Katie Lindner 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.

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A journal for real estate professionals published by the Virginia Association of REALTORS ® • www.VARealtor.com

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Volume 20 Issue 3 VARealtor.com/Commonwealth

A man alone There’s a law I’d like to see passed. (Well, I want to see more than that, but let’s stick with one for now.)

I want to outlaw mirrored backs on tractor-trailers. Seriously — did no one think about the glare on the traffic behind them?

Whether it’s the sun (depending on the time of day) or my own headlights, why on Earth would having a giant mirror on a vehicle ever be considered smart?

I could call or write Eric Cantor’s office (he’s my representative) and make a plea for the law to be changed, but — despite what I learned from Schoolhouse Rock (“I’m just a bill…”) — I wouldn’t really expect much to come of it. I’m just one guy.

But every time I grouse about those mirrored semis, people around agree enthusiastically.

I haven’t yet met anyone who liked them. So maybe I could get a petition going, or start a group “Drivers Against Glare” to get ourselves some media coverage and gain some momentum.

We could press for a law to be passed, and maybe — if we got enough media attention — actually get someone to sponsor it. .

But even then there’s a lot more to it. We couldn’t just write a law that read, “Rear panels of tractor-trailers must not be mirrored.” Bills are more complex.

Lawyers would need to get involved to figure out exactly what would need to be done. I’m

guessing it would be a change to an existing regulation, possibly Federal Motor Vehicle Safety Standard 108. And it would have to define what “mirrored” means using terms like “aiming reference plane” and “axis of reference” or some such.

Point is, it wouldn’t be a simple thing. So while a man alone has the power to make or change the law, someone with lawyers and money on his side would probably have a better shot at it.

You see where this is going, right? You have a huge advantage if the law you want to change has something to do with real estate.

You have a mechanism in place designed to do just that, with lawyers and money (thank you, RPAC) at its disposal.

It would be great if more of you took advantage of this. The whole world gripes about “It oughta be a law,” but you have the power — literally at your fingertips — to get the ball rolling with your ideas.

Read about how starting on page 24. Meanwhile, I’m adding “Gravel trucks must have their tops covered tightly to prevent rocks from flying out” to my list. l

Andrew Kantor, Editor andrew@VARealtor.com JUNE/JULY 2013

1

June/July 2013 Volume 20 ● Issue 3

contents

departments 4 quickhits The latest news and announcements for Virginia Realtors

12 statswatch The numbers that shape your world

14 legallines Questions and answers about Virginia real estate law

18 lifelessons When real estate pros break the rules... and get caught

22 formfactor New commercial forms are coming to VAR’s Forms Center

33 accessibletech Image sharing with Pinterest has some serious real estate potential

in every issue 1 firstword

features

24

See Something, Say Something

30

New laws for 2013

Think there oughta be a law? Not only can it happen, it does — every year. So let’s get your great idea on the table.

From shielding Realtors from liability for bad information, to getting more information from POAs up front, here are the new laws that will be affecting Virginia real estate.

36 rpacreport 39 contactvar 40 VARworks

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JUNE/JULY 2013

www.VARealtor.com

Work Smarter You were dissatisfied with your previous franchise organization. What made you start looking around for something new?

Many agents in that brokerage couldn’t sustain the high desk fees and still run their real estate business. When they finally got a commission check we

had to take it away – I felt like a collection agent. It created a negative relationship between the agent and the broker. When my agents came over to EXIT Realty, they didn’t have that monthly expense – they could now use that money towards their marketing budget to help them grow their business.

By taking advantage of the EXIT Formula of single-level residuals, agents can benefit while helping to grow the company and enjoy that third stream of income – that was powerful for me and for my agents.

So why EXIT Realty?

To me, owning an EXIT Realty franchise means freedom. It’s working smarter, not necessarily harder. When I joined EXIT in 2007, my father’s health was declining rapidly (he eventually passed away in 2009). I had just opened a brokerage in Virginia and I had to spend a lot of time in Pennsylvania.

Receiving sponsorship income allowed me to spend the time with my father that I needed to and still be able to pay my expenses.

EXIT has the solutions to all of the problems faced by the real estate industry – things like health insurance (through EXIT’s Approved Supplier program), retirement benefits and a third stream of income. In other real estate companies, many agents go out and become dual career agents because they need some type of steady income in order to sustain them in a tough market.

Personally, what does EXIT mean to you?

Terrylynn Harrell, Broker/Owner EXIT Choice Realty, Woodbridge VA

Does Terrylynn’s story resonate with you?

Call Nancy & Tom Shaver, Regional Owners - EXIT Realty Virginia, today to find out more!

1.804.387.4758

www.exitvirginia.com

quickhits

ANDREW KANTOR

Licensure XXXXXX

DPOR updates its license-transfer process In March, the Virginia Department of Professional and Occupational Regulation gave a lot of Realtors a surprise when it clarified its license transfer policy. According to DPOR, a licensee who transferred firms was not allowed to practice real estate until that transfer application was processed and the new broker was notified.

Realizing this would mean Realtors® could be out of work for some time while waiting for notification from the state, VAR worked for several weeks with DPOR staff and Virginia Real Estate Board members to craft a policy that would allow licensees to transfer seamlessly — and quickly — to a new firm.

The streamlined transfer process allows licensees to begin working with a new firm on the day the agent and new broker submit a completed application to DPOR. As part of the process, the new broker must: • affirm that she has verified that the transferring agent’s license is active and has not expired (via DPOR’s License Lookup page at www.dpor.virginia.gov/ LicenseLookup);

• agree to assume supervisory responsibility for the transferring licensee, effective on the date of the transfer application; and • affirm that she believes the licensee is of good character and competent to practice real estate.

The transferring licensee must certify that she has notified her old (i.e., current) firm that she is leaving.

Be sure the application is complete before submitting it. If there

are problems with the application, the licensee and broker will be notified, and they will have 10 days to correct the application to avoid possible disciplinary action.

The streamlined transfer application and accompanying guidance document are available at www.dpor.virginia.gov/Boards/ Real-Estate.

Watch VAR legal superstar Blake Hegeman explain what the changes in the license-transfer policy means: Visit VARealtor.com/DPORlicensetransfer.

4

JUNE/JULY 2013

www.VARealtor.com

Your wallet

Median gross income for a Realtor was

$43,500 on a sales volume of

$1.5 million Realtors make more — 25 percent more in 2012, says NAR According to NAR’s 2012 Member Profile, Realtors are doing much better this year — earning 24.6 percent more in 2012 than they did in 2011. (That’s two years in a row that Realtors’ income rose.)

Essentially, fewer Realtors + more total sales = more money for each Realtor.

Here are some specifics to mull over: In 2012…

• Median gross income for a Realtor was $43,500 (up from $34,900 in 2011), on a sales volume of $1.5 million, spread over 12 transaction sides.

• Realtors with 16 years or more experience had a median gross income of $57,300.

• Realtors with two years or fewer experience had a median gross income of $9,700.

• Property managers managed a median of 49 properties each, the highest number ever recorded.

• The median business expenses for a Realtor were $4,900 — 37 percent of which were vehicle expenses. (Note to grammar nazis: Yeah, yeah.)

• 24 percent of residential brokerage specialists had at least one commercial transaction side in the last year.

• The typical agent had one transaction side involving a foreclosure and one involving a short sale.

You can see NAR’s 2012 Member Profile at Realtor.org.

Volume 20 ● Issue 3

National stats

Home ownership at lowest rate in 18 years A report from the Census Bureau found that home ownership in the U.S. dropped to its lowest level since mid-1995, as more people rent rather than buy.

Quoth Bloomberg:

The share of Americans who own their homes was 65 percent in the first quarter, down from 65.4 percent a year earlier and the lowest level since the third quarter of 1995, the Census Bureau reported today. The vacancy rate for rented homes dropped to 8.6 percent from 8.8 percent a year earlier, while vacancies for owner-occupied houses fell to 2.1 percent from 2.2 percent.

Legislation

Governor signs transportation bill Quipping that “This may technically be transportation legislation, but at the end of the day, it’s a jobs bill,” Governor Bob McDonnell signed Virginia’s new transportation funding bill — a bill Virginia Realtors helped pass.

The new law eliminates the 17.5-cent per-gallon gasoline tax (at the pump), replacing it with a 3.5 percent tax (at the distributor), which helps compensate for highermileage vehicles.

The bill also adds a new six percent Diesel tax, raises the state’s sales tax by 0.3 percent, raises the motor vehicle sales tax, and adds a $64 per year tax for hybrid and alternative-fuel vehicles.

The plan hopes to raise about $3.5 billion over five years for road maintenance, new construction, public transit, intercity passenger rail, and revenue for Virginia’s airports and seaports.

It will also generate up to $335 million in Northern Virginia and $226 million in Hampton Roads for regional transportation programs via increases to sales and hotel/ motel taxes in those areas. (A considerable grantors tax was in play, but VAR fought to reduce that.)

You can see details about the plan at the state’s website, varoadtothefuture.virginia.gov.

JUNE/JULY 2013

5

quickhits Living the Code

VAR works

Study finds discrimination across Virginia Despite the law, Latinos are still receiving “adverse treatment” across Virginia — that’s the result of an investigation by the Equal Rights Center and the law firm of Drinker Biddle & Reath.

The groups conducted “matchedpair” test inquiring about rental properties. That means they sent ‘equivalent’ whites and Latinos to ask about the same rentals — same ages, marital status, income, etc.

“In 55 percent of tests,” the report found, “the Latino tester received adverse, differential treatment as compared to the white tester, in at least one respect.”

In case you think it might be subjective — “I didn’t think he liked me” or whatever — it’s not. They looked at specific, objective treatment, and they found Latinos…

• being quoted higher rents or higher fees for the same rental unit than white testers; • not being offered incentives or “specials” that were offered to white testers; • being offered fewer available units or later availability dates than those offered to white testers; and • being told about additional application requirements, such as credit checks or the need for a Social 6

JUNE/JULY 2013

Security card, which were not told to white testers.

This happened across Virginia — in the cities of Fairfax and Richmond, in Henrico, Loudoun, Prince William, and Roanoke counties; in Manassas and Northwest Virginia (Augusta, Culpeper, Frederick, and Rockingham counties); and Virginia Beach.

The law is crystal clear: You cannot treat prospective tenants differently because of national origin or perceived national origin. Period.

In addition, as a Realtor you are required to adhere to Article 10 of the Code of Ethics:

Realtors shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. Realtors shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation.

Two Realtor commercials hit NBC in Richmond

Working with our friends at the local NBC affiliate, VAR produced and ran two Realtor image commercials Download 200,000+ brand logos in vector format for in the Richmond http://www.logoeps.com/ area — it was a test to see how well they were received, and part of our overall strategy to reinforce with consumers the value of working with a Realtor. We hope to continue to air around the state in the near future.

One, “More Than A Logo,” focuses on the Realtor pledge and our Code of Ethics. The other, “Look For the ‘R’,” shows what Realtors can do for consumers. Both, of course, promote the Realtor logo and brand.

If you didn’t catch them on TV, you can see them on VARealtor. com/2013commercials.

Keep up with the Code at VARealtor.com/ethicscenter.

www.VARealtor.com

Does Your Client Need Real Answers About Homeownership?

Here’s The Starting Line.

Looking for a way to help new clients take that first step with confidence? Tell them about VHDA’s free First-Time Homebuyer Class. It’s a great way to learn the entire homebuying process from start to finish, and how to stay on track as a responsible homeowner. The class is offered in English or Spanish, in person or online. And it’s free, with no obligation. For information, visit vhda.com or call 877-VHDA-123.

Virginia Housing Development Authority | 877-VHDA-123 | vhda.com

quickhits Mortgages

National issues

Immigrants key to housing (and economic) recovery

Bill would remove roadblock for mobile-home loans A bill being introduced in Congress by representatives Joe Donnelly (D-IN), Stephen Fincher (R-TN), and Gary Miller (R-CA) is trying to fix what the legislators feel is an unintended consequence of new rules from the Consumer Financial Protection Bureau that cover “predatory” or “high-cost” loans.

Here’s the deal: Mobile or manufactured homes usually cost a lot less than a typical suburban property. Basic math means that the cost of originating and servicing loans for those properties might be the same in terms of dollars, but are much higher in terms of percentage, in a small loan.

Result: Someone trying to get a loan to buy a manufactured home might find that the loan exceeds the cost guidelines of the Home Ownership and Equity Protection Act. That would make it — officially, anyway — a high-cost or predatory loan.

Good luck getting a lender to offer one of those.

Thus the “Preserving Access to Manufactured Housing Finance Act.” It would change the Truth in Lending Act to modify the definition of “high-cost mortgage” so lenders would be able to make them more easily (among other things).

8

JUNE/JULY 2013

A story in the Financial Times explained that immigrants to the U.S. have not only been key to the housing recovery, they will remain key to the market. It’s based in part on a report from Housing America and the Mortgage Bankers Association.

Some key points: • While homeownership has been falling for nativeborn Americans over the last several years, it’s been increasing for immigrants.

• From 2010 to 2020 more than a third of your buyer clients will likely be immigrants — nationwide, they’re expected to account for 35.7 percent of new homeowners.

• That growth in foreign-born homeowner demand “is projected to remain strong in the nation and increase in all but two states, California and New York.”

• If current non-citizens gain that citizenship, economists project it will result in $100 billion being spent on housing.

The FT explains the attraction — it’s more than just latching on to the American Dream.

Property is also an attractive investment for non-English speakers. “Your investment opportunities are much more limited,” says [Leung Hon, a real estate agent in New York]. “You can’t play the stock market or buy bonds. A house is easy to understand and is seen as a form of savings.”

www.VARealtor.com

Don’t worry

Housing markets

Better to buy now, sell later — and more from a Trulia survey

Rejoice: Real estate agent rated happiest job in America Real estate agents have the happiest job in America, according to a new survey from CareerBliss. They — that is, you — beat out some hot other careers such as “senior QA engineer,” “senior sales representative,” and “construction superintendent.”

The survey looked at more than 65,000 career reviews in which workers rated “several factors that contribute to job happiness, such as company culture, compensation and the work they do,” says the site.

And CareerBliss co-founder and CEO Heidi Golledge explains why: “Right now, it is a seller’s market so the real estate agent’s cost of advertising and marketing is very low and commissions are high. Happy times.”

The least happy job? Associate attorney, with “customer service associate” and “clerk” ranked near the bottom.

A new survey from Harris Interactive — on behalf of Trulia — found that people think…

A. It’ll be better to buy now than next year.

B. It’ll be better to sell next year than now.

“A” is probably true — more buyers are entering the market, and inventory is tight and getting tighter.

Further, there’s no clear sign of that letting up. Still, there are foreclosures in the pipeline and plenty of REOs that might ease the inventory pressure.

“B” is harder to call. Now is a great time to sell, but if inventory stays low we could be headed into a full-fledged sellers’ market next year. So maybe it will be better. It’s going to depend on local conditions, though — what’s true for Fredericksburg won’t (necessarily) be true for Danville.

Here’s some more fun stuff from the survey: regrets.

Topping the list for renters is pretty obvious: 42 percent said they wished they had bought. (Assuming they had good enough credit to buy, you have to wonder why they took so long to do the math.)

Topping the list for buyers (and number two for renters): “I wish I had chosen a larger home.”

Hopefully they really mean “I wish I had chosen a larger home that was still within my budget.”

Ethics and marketing

NY to real estate agents: No, you can’t have that title The New York Department of State recently told real estate agents there that — independent contractors or not — you can’t give yourself some highfalutin title to make yourself sound more important than you are.

Calling yourself a president, managing director, protector of the innocent, Lord of the Dance, or whatever constitutes deceptive advertising according to New York law.

Quoth Real Estate Weekly:

When dealing with puffed up titles, the ... opinion makes clear that unless the agent is a corporate officer or member of a limited liability brokerage Volume 20 ● Issue 3

company or partnership, they cannot have any title that infers that they hold such a position.

A “vice-president” actually has to be a vice-president of the corporation, and a “managing director” actually has to have the responsibilities of one. And that can hardly ever be the case in New York, where real estate law prohibits anyone selling real estate under another broker from holding a corporate management position.

Further, the state has warned brokers that they could also be subject to disciplinary action if their agents start getting, shall we say, above their station.

JUNE/JULY 2013

9

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Mortgage programs

Renters

More people spending too much of their income to rent

Senators hope to expand rural loan program The USDA has a rural-housing loan program that provides no-down-payment for rural homes. Now two U.S. senators hope to expand the program’s definition of “rural” even further, so more people can take advantage of the program.

In the past we were concerned whether some areas of Virginia would lose eligibility because they’ve outgrown the definition of “rural.” (We urged you to fight those changes — to delay them until the housing market was better recovered.)

This time the issue is about expanding the program (not just preventing it from shrinking).

The USDA defines a rural area as one with a population of no more than 25,000 persons. Now senators Tim Johnson (D-SD) and Pat Roberts (R-KS) are introducing a bill to raise that population cap to 35,000 ... at least until the next Census in 2020.

It’s not easy to say what effect that will have on Virginia; it will only make a difference in areas that are on a border between rural and suburban, as most of the state is classified as rural already.

How far this will go is anyone’s guess, but you can bet you’ll hear more about it as the 2020 Census approaches.

Volume 20 ● Issue 3

“The rent is too damn high” — add that to the growing list of reasons we’re going to see a boatload of new buyers entering the market in the next few years. That’s a reasonable conclusion from new Census Bureau data.

When the housing market collapsed, a lot of folks had to leave homes they could no longer afford — often because of foreclosure or short sales. They became renters, in part simply because their credit ratings took a big hit.

Result: Rental vacancy rates are down. The new Census Bureau report says that those vacancy rates dropped from 8.4 percent to 7.4 percent in just two years (2009 to 2011) — homeownership obviously declined at the same time.

Nothing new there.

The question is, though, how many of those renters still want to own? The homeownership-as-AmericanDream idea is alive and well; survey after survey shows that. And we’ve been saying for some time now that there are “shadow consumers” who will buy as soon as their credit ratings clear up. (The media has since dubbed them “boomerang buyers.”)

So they want to own because of that whole American Dream thing. They also want to own because they’re realizing that renting ain’t cheap.

See, the Census Bureau found that “more renters are spending a high percentage of their household income on rent.” (By “high percentage” they mean 35 percent or more of their income on rent and utilities.)

In fact, even though rent went down from 2009 to 2011, more renters were falling into that “high rental costs” category. (Of note, though, is that Richmond is one of only two metro areas in the country that became more affordable for renters; Buffalo, N.Y., is the other.)

These renters read the news so they see interest rates staying low. They see their bank accounts so they realize how much they’re spending. It’s just a matter of time before they can and will want to own… or own again. l JUNE/JULY 2013 11

statswatch

ANDREW KANTOR

Home sales up at the high end Home sales have been increasing throughout most of Virginia over the past year or more (although inventory shortages are slowing the market in some areas). What’s interesting to note is which price ranges are seeing the biggest sales increases.

For a long time, it was the lower ranges — under $200,000 — moving quickest. But more recently that trend has reversed.

In the first quarter of 2013, Virginia saw a strong increase in sales of homes in the $400,000-plus

range compared to the year before, while sales of homes $200,000 or less decreased.

The trend — at least for the first quarter — is that the higher the price tier, the greater the sales increase.

The data could suggest several things. It could reflect “boomerang buyers” re-entering the market — people who can afford larger homes but who may have bitten off more than they could chew during the housing bubble. Or it might be caused by people looking to move

up as the overall economy recovers — people who had been waiting to sell until prices improved.

As for the slowdown on the low end, that might indicate a simple inventory shortfall: slow sales because there isn’t much to sell.

Keep up (and impress your clients) with the Virginia Home Sales Report from VAR and Virginia Tech. Find the latest monthly and quarterly report data in a colorful, printable format, at VARealtor.com/homesales.

Virginia Price Distribution of Residential Home Sales Single Family Homes, Townhomes, Condos $2M+

29 35

+21%

$1.5M-$2M

42 44

+5%

$1M-$1.5M $750K-$1M

145 185

+28%

337 440

+31% 1,336

$500K-$750K

1,285

$400K-$500K

1,633

1,583

+22% +23% 2,481 2,696

$300K-$400K

+9% 3,946 4,160

$200K-$300K

+5%

$100K-$200K

5,222

0-$100K

2,643

2,989

-12%

5,466

-4%

2012-Q1

2013-Q1

12 JUNE/JULY 2013

6,5 00

6,0 00

5,5 00

5,0 00

4,5 00

4,0 00

00 3,5

0 3,0 0

00 2,5

2,0 00

1,5 00

00 1,0

50 0

0

www.VARealtor.com

THIS IS NOT AN ASTRONAUT.

IT’S ACTUALLY A CENTURY 21 AGENT with out-of-this-world skills. Going where no agent has gone before to find that one house in that one neighborhood in that one school district that shines above the rest. With a full load of daring and nerve, CENTURY 21 agents are on a continuing mission to seek out new life. As long as it’s your new life in your new home. ®

C21.COM ©2013 Century 21 Real Estate LLC, A Realogy Company. CENTURY 21® and SMARTER. BOLDER. FASTER.® are Registered Trademarks Owned By Century 21 Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each CENTURY 21 Office is Independently Owned and Operated.

legallines BLAKE HEGEMAN

Earnest money: Who gets the deposit?

And when?

Working with the major forms providers, VAR has recently made major changes to the Earnest Money Deposit (EMD) section of its Residential Contract of Purchase (Form 600) that clarifies Virginia law for consumers and agents.

Below is the new provision in the form, followed by highlights of the major changes and why they were made.

For starters, here is the new deposit language:

DEPOSIT: Purchaser shall make a deposit of $___________ to be held by _______________________________ (the “Escrow Agent”) in the form of: ¨ check ¨ cash ¨ other _______________________ (the “Deposit”). Purchaser [select one]: ¨ has paid the Deposit to the Escrow Agent OR ¨ will pay the Deposit to the Escrow Agent within ______ days after this Agreement is fully executed by the parties.

If Purchaser fails to pay the Deposit as set forth herein, then Seller may terminate this Contract by written notice to Purchaser and neither party shall have any further obligation hereunder. The Deposit may be held in an interest bearing escrow account. The Purchaser and Seller waive any claim to any interest accrued or earned by such account and acknowledge that any interest shall be disbursed to the Escrow Agent.

The escrow account shall conform to the Virginia Real Estate Board Regulations, and the Deposit shall not be released by the Escrow Agent until one of the following occurs: (i) It is credited toward the Sales Price at Settlement; (ii) Seller and Purchaser have agreed in writing as to its disposition, (iii) a court of competent jurisdiction orders a disbursement of the funds; OR (iv) it is disposed of in any other manner authorized by the Virginia Real Estate Board.

If the Property is foreclosed upon while this Contract is pending the terms of Section 54.1-2108.1 of the Code of Virginia shall apply to the disbursement of the Deposit. Foreclosure shall be considered a termination of this Contract by Seller and, absent any default by Purchaser, the Deposit shall be disbursed to Purchaser.

Q:

If an EMD is held in an interest-bearing escrow account, can the firm holding the funds keep the interest?

A: Whether you place the EMD

in an interest-bearing account is your decision, but if you do, the contract has to state who gets the interest. VAR’s new escrow provision clears up who is entitled to the interest.

The Deposit may be held in an interest bearing escrow account. The Purchaser and Seller waive any claim to any interest accrued or earned by such account and acknowledge that any interest shall be disbursed to the Escrow Agent.

Remember: You can download Form 600, and all the VAR forms, at VARealtor.com/standardforms.

14 JUNE/JULY 2013

www.VARealtor.com

Q:

I am the principal broker escrow agent; what if my agent forgets to give me the EMD within five business banking days. In other words, the funds are not deposited until the sixth day?

A: You must report this violation to the Real Estate Board within three

business days. In fact, any escrow violation must be reported.

Please note that the Real Estate Board needs the broker to report the violation in writing either by regular mail or e-mail. The Board also needs to know the name of the licensee and license number, when the deposit was due and when it was received.

Q:

We are dealing with a short sale, and the seller and buyer want to delay depositing the EMD until the lender approves the deal. Is that ok?

A: Yes, remember that parties can

agree to a deposit date other than the standard five business banking days following ratification. VAR’s Short Sale Addendum to Residential Contract of Purchase contains language below to meet this preference: The parties agree that the earnest money deposit will be deposited in Escrow Agent’s escrow account (check one): ___ within five (5) business banking days after the date this Contract is fully ratified

by Purchaser and Seller; OR ___ within ___ days after delivery by Seller to Purchaser of notice of lienholder approval of this Contract.

Volume 20 â—? Issue 3

Q:

When a house is foreclosed on after contract ratification, do I still have to get the mutual consent of the buyer and the seller to release the EMD? That is very difficult to do after a seller loses his home.

A: As mentioned earlier, the general rule is that an escrow agent may

not release EMD funds until he receives the mutual consent of the parties in writing or a court order. However, there is an exception to this rule for foreclosures.

A VAR-supported law makes clear that if a foreclosure sale occurs after contract ratification but before closing, the foreclosure may be considered a termination of the contract by the seller. If the contract provides that the purchaser is entitled to receive the EMD upon termination, and there was no default by the purchaser, the escrow agent may disburse the funds to the purchaser without the seller signing a release.

If the Property is foreclosed upon while this Contract is pending the terms of Section 54.1-2108.1 of the Code of Virginia shall apply to the disbursement of the Deposit. Foreclosure shall be considered a termination of this Contract by Seller and, absent any default by Purchaser, the Deposit shall be disbursed to Purchaser.

Again, this a limited exception for foreclosures.

JUNE/JULY 2013 15

legallines

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?

Q:

Is an EMD necessary for contract formation?

A: No. The failure of a buyer to deliver an EMD does not mean there is

no contract. It means that the buyer is in default, and the seller will have all rights against the defaulting buyer. However, the question often comes up, “How does the seller enforce his rights?” The new EMD provision makes clear that if the purchaser fails to make the deposit, the seller may terminate the contract.

The new provision also allows the parties flexibility as to when the purchaser must pay the deposit to the escrow agent.

6. DEPOSIT: Purchaser shall make a deposit of $___________ to be held by _______________________________ (the “Escrow Agent”) in the form of: ¨ check ¨ cash ¨ other _______________________ (the “Deposit”). Purchaser [select one]: ¨ has paid the Deposit to the Escrow Agent OR ¨ will pay the Deposit to the Escrow Agent within ______ days after this Agreement is fully executed by the parties. If Purchaser fails to pay the Deposit as set forth herein, then Seller may terminate this Agreement by written notice to Purchaser and neither party shall have any further obligation hereunder.

• 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

16 JUNE/JULY 2013

The VAR Legal Hotline should not replace your own legal counsel. We will not answer questions on matters www.VARealtor.com unrelated to real estate or real estate brokerage, nor can we help with pending arbitrations.

Q:

What do you mean you can’t release the EMD – the contract clearly states that I get it when the deal dies?

A: That was a common question escrow agents

received because VAR’s EMD provision did not educate consumers about real estate licensee escrow responsibilities. We all know that a licensee holding the EMD is bound by the Virginia Real Estate Board’s regulations that provide, in a nutshell, that no matter what anybody says, the escrow agent may not disburse without either the written consent of the buyer and seller, or a court order. That is because the escrow agent is a fiduciary to both parties concerning the EMD. The new provision clarifies the escrow agent’s limitations with the following language: The escrow account shall conform to the Virginia Real Estate Board Regulations, and the Deposit shall not be released by the Escrow Agent until one of the following occurs: (i) It is credited toward the Sales Price at Settlement; (ii) Seller and Purchaser have agreed in writing as to its disposition; (iii) a court of competent jurisdiction orders a disbursement of the funds; OR (iv) it is disposed of in any other manner authorized by the Virginia Real Estate Board.

Q:

Does a real estate licensee have to hold the EMD in a real estate transaction?

A: No, but if the licensee holds it he is subject to the escrow provisions of REB regulations — they're in title 18 of the Virginia Administrative Code.

Legal Lines is written by VAR legal 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 20 ● Issue 3

®

JUNE/JULY 2013 17

lifelessons Kathleen Toler

Leaving a mess Licensees who run afoul of Virginia real estate regulations can find themselves in the crosshairs of the Virginia Real Estate Board, facing punishment ranging from a small fine to loss of their license. Here are a few real-world examples taken from the actions of VREB. These narratives are based on the Board’s official findings; participants may disagree with VREB’s conclusions and version of events. They are provided solely as examples of Board actions. All of the names have been changed.

Squandered Inheritance As principal broker of Linda Robinson Realty, Amelia Lacker had trained under her grandmother and inherited the business from her after she died.

Unfortunately, she continued using her grandmother’s outdated procedures and bookkeeping systems, some dating back to the 1980s — some of the accounting records were still written by hand.

The firm managed a number of rental properties, including eight owned by Doug Haskins. Beginning in January of one year, Haskins noticed that he wasn’t receiving rent payments due to him from Linda Robinson Realty. Each time he complained, Lacker promised him that rental proceeds would be mailed to him, but he never received a dime.

After several months had passed, Lacker finally sent Haskins a check, but it was returned for insufficient funds. By July, an angry Haskins filed a complaint with the Board. Lacker’s firm owed him more than $27,000 in unpaid rental proceeds.

The Board’s investigation uncovered that Lacker had not paid any rental proceeds to another property owner, Oak Grove United Methodist Church, either.

Lacker explained that her firm was “experiencing financial difficulty” and she basically had to “rob Peter to pay Paul.” She said that she “assumed that things were going to pick back up and I would be able to catch back up again, and I was just doing what I had to do to hang on.”

But there was more to the story than an innocent granddaughter struggling to keep her inherited firm solvent. The Board found that her accounting procedures were a mess, too. For one thing, Lacker deposited rental proceeds into her firm’s operating account rather than a separate escrow account. And it probably didn’t 18 JUNE/JULY 2013

help that she never bothered to open the firm’s bank statements.

Lacker also failed to collect security deposits for some rental properties, and some leases didn’t include information about security deposits or where the funds were held. During the investigation, she explained that the one-page lease form that she used originally came from her grandmother; it didn’t include the complete terms and conditions of the real estate transaction, violating another regulation.

When Lacker ran into financial trouble, she did whatever she had to do in order to keep the firm afloat.

Unfortunately, her solution was to take money that wasn’t hers to cover the firm’s operating expenses.

Surely her grandmother would have rolled over in her grave had she known her granddaughter resorted to stealing money from her clients, including a church.

Lacker was fined $4,000 and her license was revoked. www.VARealtor.com

Temporary Inanity Stuart Westwood, president and owner of Westwood Properties, hired Floyd Allen to be principal broker of his firm. Allen accepted the position in July on a temporary basis, expecting that the assignment would last no more than three months until a replacement could be hired.

While Allen was principal broker, he and a sales team of two managed around 300 rental properties.

Although Allen was licensed in Virginia, he was living in Georgia at the time and never actually set foot in the Westwood Properties office.

He was in contact with the sales team about once a week and kept in touch by phone, fax, and e-mail.

The firm had two escrow accounts, one for owners and one for tenants. However, Allen never had signature authority over either account. At first, Westwood told Allen that he (Westwood) was in the process of changing the accounts to a different bank and would add him after he had completed the transition. Westwood promised several times to add Allen, but he never followed through.

Allen also asked Westwood for a copy of the firm’s policy and procedure manual. It didn’t exist. Allen told Westwood that the firm needed to produce one as soon as possible, but no one made it happen.

In mid-October, after three and a half months without access to any of the financial accounts, Allen had enough. He gave a verbal resignation to Westwood ... who asked him to stay on another month. Surprisingly, Allen agreed.

In November the Real Estate Board sent a demand letter addressed to Allen at the Westwood Properties office requesting access to all financial and real estate transaction information.

A member of the sales team informed Allen of the letter, who brushed it off as a routine audit letter, Volume 20 ● Issue 3

asking Westwood to handle it. He never contacted the Board’s agent to discuss the letter. On the day of the audit, no one from Westwood Properties bothered to show up.

On the first day of December, Westwood unexpectedly told Allen that he was shutting down the company for financial reasons. Allen voluntarily returned his license to the Board on December 3, which placed his license and the firm’s on inactive status.

The next day, Westwood told an investigator from the Board that accounting records at Westwood Properties were in disarray and no one had gone over the books in about three years. He explained that the principal broker prior to Allen left everything in a mess when he left the firm a year before. Neither Westwood nor Allen could explain why they didn’t organize the records once Allen took over.

Temporary or not, Allen was principal broker at Westwood for nearly five months, yet he had no way of knowing if the firm was properly handling its clients’ money the whole time.

Allen was fined $4,000 and his license was revoked. l JUNE/JULY 2013 19

formfactor Blake Hegeman

New commercial forms VAR has made it a priority to expand its standard forms library to include more practice-specific forms. For example, in recent years our property management forms have been overhauled and expanded, and we’ve introduced commercial forms to the library.

That expansion is will soon include the following additional commercial forms: • Response to Buyer’s Offer • Land Information Worksheet • Confirmation of Agency Relationship and Registration Statement • Confidentiality Agreement • Exclusive Buyer/Tenant Representation Agreement • Commercial Lease Application • Commercial Lease (single-tenant facility) • Commercial Lease (multi-tenant facility) These forms join VAR’s current commercial forms: • Commercial Listing Agreement • Commercial Purchase Agreement • Commercial Letter of Intent for Lease • Commercial Letter of Intent for Purchase.

The new forms were hand-selected by Commercial Council members as essential additions to VAR’s Forms Library. Notable among the new forms are critical documents to conduct commercial leasing transactions. The forms also address commercial agency agreements and documents that improve the flow of the transaction.

The new forms are being reviewed by VAR commercial members to ensure they reflect the cutting edge of commercial practice — look for them in VAR’s library in the very near future. l

COMMERCIAL LEASE AGREEMENT (Single Tenant Facility)

(Note: This form is not intended to be used as a Sublease and SHOULD NOT be used in Sublease circumstances) THIS LEASE AGREEMENT, including any and all addenda attached hereto (“Lease”), is by and between ___________________________________________________________________________________________________________, a(n) ___________________________________________(“Landlord”), (individual or State of formation and type of entity) whose address is _________________________________________________________________________________________, and _______________________________________________________________________________________________________, a(n) __________________________________________________________________________________________________(“Tenant”). (individual or State of formation and type of entity) whose address is _____________________________________________________________________________________________  If this box is checked, the obligations of Tenant under this Lease are secured by the guaranty of _____________________________________________________________ (name(s) of guarantor(s)) attached hereto and incorporated herein by reference. (Note: Any guaranty should be prepared by an attorney at law.)

For and in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: PREMISES 1. Landlord leases unto Tenant, and Tenant hereby leases and takes upon the terms and conditionsCOMMERCIAL which hereinafterLEASE appear, AGREEMENT the following described property, including any improvements located thereon (hereinafter called the “Premises”), to(Multi-Tenant wit: Facility) (Address): ___________________________________________________________________________________________________ ___________________________________________________________________________________________________ (Note: This form is not intended to be used as a Sublease and SHOULD NOT be used in Sublease circumstances)  All  A portion of the property in Deed Reference: Book _________, Page No.________, __________________ County; THIS_______________ LEASE AGREEMENT, including any and all addenda attached hereto (“Lease”), is by and between consisting of approximately acres. ___________________________________________________________________________________________________________, a(n)____________________, ___________________________________________(“Landlord”), Plat Reference: Lot(s) Block or Section _________________, as shown on Plat Book or Slide or State of__________________ formation and type of County, entity) consisting of _______________ acres. _______________ at Page(s)(individual _______________, whose address is _____________________________________________________________________________________ , and  If this box is checked, Premises shall mean that property described on Exhibit A attached hereto and incorporated herewith by ___________________________________________________________________________________________________________, reference. a (n) ____________________________________________(“Tenant”). (individual or State of formation and type of entity) (For information purposes only, the tax parcel number of the Premises is: _______________________________________________) whose address is _____________________________________________________________________________________________ TERM  If this box is checked, the obligations of Tenant under this Lease are secured by the guaranty of ____________________________ 2. The term of this Lease shall commence on ___________________, 20____ (“Lease Commencement Date”), and shall end at ____________________________________________ (name(s) of guarantor(s)) attached hereto and incorporated herein by reference. midnight on _____________________, 20____, unless sooner terminated as herein provided. The first Lease Year Anniversary shall (Note: Any guaranty should be prepared by an attorney at law.) be the date twelve (12) calendar months after the first day of the first full month immediately following the Lease Commencement Date and successive For Lease Anniversaries shall be the date twelve calendar months the previous Lease Year andYear in consideration of the mutual promises set forth(12) herein and other good from and valuable consideration, the receipt and sufficiency Anniversary. of which are hereby acknowledged, the parties hereto agree as follows: PREMISES/PROPERTY (Note: In this paragraph, Premises is the actual space being leased and Property is the broader site/location of the Premises.)

1. (a) Landlord leases unto Tenant, and11Tenant hereby leases and takes upon the terms and conditions which hereinafter Page 1 of appear, those certain premises depicted on Exhibit A attached hereto and incorporated herein by reference (hereinafter called the “Premises”), which is a part of a building or buildings located at the Property (defined below).

STANDARD FORM 592 -T North Carolina Association of REALTORS, Inc. The address of the Premises is: Revised 1/2013 © 1/2013 Tenant Initials ______ _______ Landlord Initials ______ ______ (Address):

(b) The Premises is located at the following described property (“Property”): (Address):

Plat Reference: Lot(s) ____________________, Block or Section _________________, as shown on Plat Book or Slide _______________ at Page(s) _______________, __________________ County, consisting of _______________ acres.  If this box is checked, Property shall mean that property described on Exhibit B attached hereto and incorporated herewith by reference.

(For information purposes: (i) the tax parcel number of the Property is: all of the Property is described in Deed Book _________, Page No.________, __________________ County.)

; and, (ii) some or

Page 1 of 13

Tenant Initials ______ _______ Landlord Initials ______ ______

STANDARD FORM 593-T Revised 1/2011 © 7/2012

Commercial lease agreements just debuted in the VAR Forms Center

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 legal 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.

22 JUNE/JULY 2013

www.VARealtor.com

Coverage and protection.

Some things you shouldn’t take chances with — and your real estate license is one of them. VAR helps protect you from unforseen legal headaches with our Legal Resources Center.

Search legal columns from our extensive library, read articles, and watch videos that can help you know what’s a safe move — and what’s likely to hurt.

Visit us at VARealtor.com/LegalResources

Another great member service brought to you by the Virginia Association of REALTORS®

sEE something

say something You have the power to change the law of the land. Use it.

24 JUNE/JULY 2013

www.VARealtor.com

ANDREW KANTOR

Everyone has gripes. Everyone sees things they’d like to change.

But you, as a Realtor, have a distinct advantage: You have access to a powerful machine that can turn your ideas into reality.

If you think there oughta be a law, it can actually happen.

Realtors’ suggestions make their way into new laws every year. There are no forms to fill out, no complex procedure. You simply have to care enough to actually be willing to talk about it.

Your local and state associations have a well-established, experienced, and highly effective team in place to turn legislative ideas into reality. That’s what it does: change the law to improve the business climate for Realtors in Virginia.

So if you see a way to improve the real estate laws of the Commonwealth of Virginia, you can do it. Laws are changed because people stand up and say something.

Squeaky wheels Here’s an example: Bert Kelly, legal counsel for the Virginia Peninsula Association of Realtors, had seen and heard about Realtors being sued for publishing incorrect MLS information — but this was information they pulled from government records. He made some noise about that, and, thanks in large part to his efforts, Realtors won a major victory this year: There is now a shield law protecting them from liability when the information they receive is wrong. (See the details in “New Laws for 2013” on page 30. Being shielded from liability is a Big Deal.)

A-ha, you say, but Kelly is a lawyer and a legal counsel to boot — of course he was able to make a change to the law.

But you’d be wrong. Kelly’s position only allowed him to see that there was a widespread problem. The law was changed because he was willing to go to the association and say, “This needs to be fixed.”

The cliché is true: One person can make a difference.

Volume 20 ● Issue 3

JUNE/JULY 2013 25

YOU HAVE THE POWER TO CHANGE THE LAW, JUST

BY TALKING TO PEOPLE.

Take Zinta Rodgers-Rickert of Fairfax. She isn’t an attorney. She’s a Realtor. Politics isn’t her game. In her day-to-day business, though, she noticed a recurring problem: Clients looking to buy condominiums were spending months in the process only to learn that the Federal Housing Administration wouldn’t approve any loans for that complex.

That meant everyone had just wasted a lot of time. But it didn’t need to be so. One of the clearest indicators of a condo complex’s eligibility for FHA loans is simply the renterto-owner ratio. If too many units are rentals, FHA won’t approve a loan.

It seemed smart to have that information up front. But that wasn’t happening, says Rodgers-Rickert: “There was one too many times when I’d contact an onsite management office and they wouldn’t disclose that information.”

The result was frustrated buyers, not to mention sellers whose condos were off the market for weeks or months.

So Rodgers-Rickert came to VAR and suggested that the rules be changed. And this year we were able to take her suggestion and turn it into law: Starting in July, condo and POA disclosure packets must disclose how many units are owner-occupied.

It’s a small and simple change, but one with a major impact on condo buyers. And it wouldn’t have happened without one Realtor saying, “I wish we had more information.”

Enough for the whole class Changing the law doesn’t have to be about fixing something that’s wrong.

You might also see something being done right — and want to see it

26 JUNE/JULY 2013

available to Realtors.

That’s what happened with George Creed of ReMax Xecutex in Oakton.

In 2008 he started noticing that he was spending a lot of time in the classroom.

“I was taking an awful lot of CE courses,” he says. “I was probably racking up 45, 50, maybe 55 hours a year” just by attending various events.

But those course hours didn’t carry over to the next license cycle.

Out of curiosity, Creed asked some other people about that. “I asked lawyers and doctor friends,” Creed says — people in professions that also have CE requirements. Turns out their CE hours do carry over from year to year.

If it worked for doctors and lawyers, Creed thought, it ought to work for Realtors as well. “It made no sense that we have to redo everything every year or two.”

Guess what? In 2012, VAR was able to pass a law that “requires the Real Estate Board to establish procedures for carrying over continuing education credits by real estate licensees.”

Without George Creed, that may never have happened… at least not till someone else stepped up and said, “There oughta be a law.”

Take-away #1: You have the power to change the law, just by talking to people. (More on that in a moment.)

Take-away #2: We count on you to use your power (for good).

Every year, VAR develops a legislative agenda. These are the laws and regulations we’d like passed or changed to improve the business climate for real estate professionals.

Where do the ideas come from? You. So to be blunt: Don’t just sit there.

Say something. www.VARealtor.com

Here’s what you do As many of us learned from “Schoolhouse Rock,” anyone can suggest a law to her congressman or delegate or senator and see it enacted.

In reality, though, it helps to have a little more oomph behind your request.

That’s why there are lobbyists and PACs and SuperPACs. In the case of Virginia real estate law, the oomph comes from — you guessed it — your associations: local, VAR, NAR. Associations make a group of Realtors louder than the sum of its parts.

As Christine Windle, director of governmental affairs and communications at the Dulles Area Association of Realtors puts it, “They can have an impact through the Realtor organization more so than going directly to a legislator.”

The first step is to talk to other Realtors and to your broker.

Think you’re alone in having a gripe? Don’t bet on it. If you see something happening in your area that concerns you, mention it to colleagues.

It won’t take long to get a feel for whether others are seeing the same things, whether it’s “Gosh, this process is a lot more frustrating than it needs to be” or “If we could do this it would make things so much easier.”

That will not only tell you whether the problem is widespread, it will also give you the names of some other people who are dealing with it and some of the effects it’s had on others (“I’ve had three deals go bad in the last month because of it”). You might also learn that what you’re seeing is part of a larger issue.

The point is to get a feel for the scope of the problem, which will make it easier to explain its urgency. (You Volume 20 ● Issue 3

might even learn how others are dealing with it.)

Earlier this year, Realtors who changed firms got a nasty surprise.

The Department of Professional and Occupational Regulation said those Realtors had to wait to practice real estate — for weeks or even months — until the department processed and approved the transfer paperwork. It was like being told by the DMV that could couldn’t drive until it processed your change of address.

The hue and cry from Realtors and brokers was, shall we say, quite loud.

But because of that noise, we learned about the problem quickly, and we were able to work with DPOR and devise a more-sensible solution. (Now Realtors only need their new brokers to fill out a quick form — no waiting necessary.)

The next step is to talk to your Realtor association. Here’s why.

Each summer, VAR’s Public Policy Committee meets to determine what new laws we are going to try to have passed that year. (The PPC is composed of working Realtors from across the state, and also meets with political staff from local associations.)

Simply put, you want someone at that meeting to bring up your issue.

“I’ve had someone talking to me a lot about XYZ,” she might say to the committee. “Anyone else heard anything about that?” It’s quite possible that other committee members will be aware of it.

Most of the laws VAR works to pass each year start exactly this way.

They come from Realtors who contact their local associations with an idea for something that needs a-changing..

So how do you do that? Call the head of your local association — not

Timeline: Throughout the year: Realtors suggest ideas for new laws to their local associations.

February: After the General Assembly adjourns, VAR’s Public Policy Committee (PPC) begins informal discussions about possible laws we’d like passed in the next session.

Most of these are based on those ideas suggested by Realtors.

July/August: The PPC meets to draft an outline of the next year’s legislative agenda; again, it’s based on ideas from Realtors sent via their local associations.

October: At its meeting at the Real Show, VAR’s Board of Directors (also composed entirely of Realtor volunteers) approves the basics of the legislative agenda.

October-December: VAR’s legislative consultant crafts the language of the laws, then works to find the appropriate member of the General Assembly who will introduce and sponsor the bill. (This is where RPAC relationships really come into play.)

JUNE/JULY 2013 27

“Every time I go before a group, I ask ‘Is something bothering you?’”

But you don’t need to wait to be asked.

the elected president, but the staff member or association executive who runs the day-to-day operations.

(See the box, “Who ya gonna call?”)

Explain what the problem is, and that you want to get in touch with whomever handles political issues.

The association exec will get you in touch with the right person, which will depend on which local association you’re part of.

• A staff member (e.g., Christine Windle in Dulles) with a title like “government affairs director” • One of VAR’s political field representatives (in the central or southwestern parts of the state) • A Realtor who serves on VAR’s Public Policy Committee • A Realtor who serves on the local association’s legislative affairs committee And that’s the person you need to explain the issue to. You don’t necessarily need to worry too much about how to fix it — focus on the problem you’re encountering. If you’ve met others who have had the same issue, mention that (and maybe provide contact information).

Your goal is to give whomever you’re speaking with enough information and justification to bring the issue up with the Public Policy Committee, where it can become part of the official legislative agenda: the laws we’re going to be working to pass in the General Assembly.

Don’t stop pushing If you really care about an issue, you won’t want to stop at one phone call or e-mail message. Follow up with the person you got in touch with in the first place. Be a thorn in her side, a bug in his ear, a monkey on her back 28 JUNE/JULY 2013

— you get the picture.

Also be sure your message is getting around. Is someone you know a member of VAR’s Public Policy Committee?

Make sure she knows about the issue, too.

Even if you’re not in southwestern or central Virginia, drop a line to one of VAR’s two political field reps (see “Who ya gonna call?”). That will alert them to keep an ear to the ground about the issue you’re facing.

Finally, fill out the form at RealtorsChoose.com/MyLaw. That goes to VAR’s director of political operations, Heidi Schlicher, whose job it is to keep track of Realtor issues.

The more people who are aware of a problem, the more likely it will be to make it onto the legislative agenda. That’s one reason we talk about networking so much. By attending events — from local classes to the statewide annual Real Show convention or GetActive legislative conference — you’ll not only be able to meet with other Realtors, you’ll be able to get some face time with the people who handle political affairs.

They say the squeaky wheel gets the grease, and in this case it’s very true.

Don’t let issues that affect your job — and possibly the jobs of a lot of other Realtors — sit by the wayside. Make some noise, and there’s a good chance something can be done.

Christine Windle says she takes a proactive approach to Realtor issues.

“Every time I go before a group, I always ask ‘Is there something bothering you?’,” she says.

But you don’t need to wait to be asked. l

www.VARealtor.com

Who Ya Gonna Call?

The best person to contact to get your idea heard depends on your local Realtor association. In some cases there is a dedicated staff person for political issues — a government affairs director (GAD). In others, VAR has a staff member dedicated to helping with political issues in the region. In most, however, your first point of contact will be the head staffer of the association — the “association executive” (AE).

LOCAL associations Blue Ridge Sheree Higgins, AE (540) 667-2606 shiggins@brarva.com Bristol VA/TN

Hagan Horn, AE (423) 968-1192 btvar@btes.tv Charlottesville Area Neil Williamson, GAD (434) 817-2227 neil@caar.com Chesapeake Bay & Rivers Alice Hazelwood, AE (804) 776-0568 cbrar@va.metrocast.net Dan River Region Nikki Harris, AE (434) 792-2851 abdrrar@comcast.net Dulles Area Christine Windle, GAD (703) 777-2468 cwindle@dullesarea.com Eastern Shore Laura Flournoy, AE (757) 789-7630 eo@easternshoreassociationofrealtors.com

Fredericksburg Area Kim McClellan, GAD (540) 373-7711 kmcclellan@faarmembers. com

Martinsville, Henry & Patrick Counties Kim Mangum, AE (276) 666-9005 kmangum@mhpcar.com

Greater Augusta Bettie P. Plecker, AE 540-213-0235 bplecker@ntelos.net

Massanutten Michele Jewel, AE (540) 459-2937 mar@shentel.net

Greater Piedmont Susan Gaston, GAD (757) 871-1445 susan@gastongroup.com

New River Valley Stephanie White, AE (540) 381-9354 swhite@nrvar.com

Hampton Roads Andrew Sinclair, GAD (757) 473-9700 asinclair@hrra.com

Northern Neck Susan Price, AE (804) 529-7313 exo@nneckar.com

Harrisonburg/ Rockingham Hannah Collins (540) 433-8855 staff@hrar.com

Northern Virginia Mary Beth Coya, GAD (703) 207-3200 mbcoya@nvar.com

Lexington/Buena Vista/ Rockbridge Debbie Armentrout, AE (540) 464-4700 ae@rockbridgerealtors.com Lynchburg Sandra Maschal, AE (434) 385-8760 sandrafmaschal@att.net

Var’s Political Field Representatives Kathy Diradour (Richmond, Southside, and South Central regions)

Prince William Richard J. (RJ) Marshall, AE (703) 565-0033 rjm@pwar.com Richmond Elizabeth Greenfield, GAD (804) 422-5000 egreenfield@rarealtors.com

Roanoke Valley Laura E. Benjamin, AE (540) 772-0526 leb@rvar.com South Central Michelle McCadams, AE (434) 392-9995 scarmichelle@embarqmail. com Southern Piedmont Land & Lake Donna Dennis, AE (434) 222-9924 spllbr@yahoo.com Southside Virginia Joe Croce, AE (804) 520-4496 jcroce@svarealtors.com Southwest Virginia Lisia Amburn, AE (276) 623-1252 lisia@swvar.com Virginia Peninsula Susan Gaston, GAD (757) 871-1445 susan@gastongroup.com Williamsburg Area Linda R. Kinsman, AE (757) 253-0028 lkinsman@waarealtor.com

And finally Heidi Schlicher, VAR Director of Political Operations (804) 264-5033 heidi@varealtor.com

(804) 731-4663 kathy@varealtor.com Bob Hill (Southwest region) (804) 347-0689 robert@varealtor.com

Volume 20 ● Issue 3

Our Web suggestion box: RealtorsChoose.com/MyLaw.

JUNE/JULY 2013 29

New Laws

for 2013

By John G. “Chip” Dicks, VAR Legislative Counsel The 2013 session of the General Assembly was dominated by transportation — the bill that finally passed will, hopefully, provide much-needed funds for areas of the commonwealth where roads and public transit options need the most work.

VAR spent a good deal of effort on that bill, working with legislators and the governor’s office to ensure that Virginia’s transportation needs were addressed, while not unduly burdening homeowners with the cost of the current and future projects we need. The state’s aging transportation infrastructure has already been having an effect on businesses, and it was clear more money was needed — and that everyone would benefit from the improvements.

VAR members put this legislation at the top of the list with more than 3,500 “call to action” responses and more than 400 Realtors contacting their legislators as part of the Day on the Hill. Participation counts and VAR members made a big difference in getting the transportation legislation passed.

The final bill signed by Governor McDonnell isn’t perfect — no legislation this complex (and affecting so many) will be. But we’re confident it’s a major step forward.

While transportation got the most airtime, VAR also passed a number of other bills involving the business of real estate. Some of them will have a significant impact, while others are more technical. All are designed to make Virginia’s Realtors’ jobs a little easier.

30 JUNE/JULY 2013

www.VARealtor.com

REALTORS ARE SHIELDED FROM LIABILITY IF A PUBLIC RECORD IS INACCURATE It’s one thing to be punished for your own mistake. It’s quite another to face a lawsuit because of someone else’s error. Yet that’s just what we heard was happening: Realtors and brokers were being sued because of incorrect information in MLS listings — even when that information came from public records.

Because Realtors frequently rely on government records, client disclosures, or information from other professionals — such as surveyors or engineers — when they advertise properties, these kinds of suits would turn ordinary property transactions into research, insurance, and litigation nightmares.

Thankfully, we were able to pass an immunity law for Realtors — something that’s almost unheard of these days. It says, essentially, that Realtors and brokers cannot be held liable for incorrect information they obtain from a reputable source in a civil lawsuit or in a regulatory proceeding at the Real Estate Board.

Companies will still want their agents to double check data, and it is important to remember that an agent can still be held liable if they are grossly negligent or act in reckless disregard of the truth.

You must disclose if a home was once a meth lab

“Overcrowded” is now clearly defined

Once a house is used to manufacture illegal methamphetamines, it’s currently an uncertain and difficult path to make it safe again.

That’s why, starting July 1, 2014, you must disclose to any potential buyers if the seller has actual knowledge that a home was once used to create meth, unless the home has been cleaned to Virginia Department of Health guidelines.

(This is similar to the law requiring disclosure of Chinese drywall.)

The Health Department guidelines won’t become final until 2014, which is why there is a delayed effective date.

Real estate agents need to know about the potential for conflict in two sets of requirements for the number of people who can live in a rental house. HUD has a “two persons per bedroom” in many situations (but not all) as a maximum occupancy standard. If you violate the HUD standard, you may be violating the fair housing laws.

The Virginia Uniform Statewide Building Code contains a minimum occupancy standard which requires at least 50 square feet per person per bedroom. Real estate agents need to measure the square footage of bedrooms in rental housing to make

Volume 20 ● Issue 3

POA and condo disclosure packets must include owner-occupied vs. Rented units With so many buyers relying on FHA financing, it’s important to know whether a seller is able to accept it. That’s a huge issue with condos, because each complex has to be “certified” by FHA before the government will back a loan.

FHA has specific guidelines for that certification; one important factor is the number of owneroccupied units. If potential buyers knew up front whether a particular complex met that FHA requirement, it could save a lot of trouble — why bother making an offer if you know you can’t get FHA financing because there are too many rental units?

Unfortunately, not every condo complex would provide that information, so buyers and their Realtors would often have to get deep into the transaction before learning whether financing was even available.

That will change on July 1, 2013, when that information — the number of owner-occupied vs. rental units in a complex — must be disclosed with the standard POA/condo packet given to prospective buyers. Seeing the right ratio won’t guarantee that FHA will approve a loan, but it will at least let Realtors know if they can save themselves and their clients some time and hassle.

JUNE/JULY 2013 31

sure you comply with the building code standards. This legislation frames these two sets of requirements in state law.

All fair-housing cases involving Realtors will be heard by the Real Estate Board Fair-housing cases against non-real estate licensees are heard by the Fair Housing Board. Fair housing cases against real estate licensees are heard by the Virginia Real Estate Board.

Because a growing number of fair housing cases are filed against the real estate agent and the non-licensee property owner, the same case could be heard by both boards. The new law gives the REB jurisdiction in all cases where one of the cases involves a licensed real estate agent.

Electronic payments are treated like other payments More and more landlords and property managers are beginning to accept electronic payments from tenants. The new law says that if a tenant fails to make an electronic payment on the designated date, the landlord can pursue civil action as if it had been a bad check. This allows the landlord to recover a civil penalty in most cases of $250, costs of court, and attorney’s fees.

Commercial appraisal management companies are regulated just like residential ones Residential appraisal management companies are regulated by

32 JUNE/JULY 2013

the Virginia Real Estate Appraiser Board, but there was a question about commercial AMCs… until now. Starting July 1, 2013, the REAB’s authority clearly covers regulation of commercial AMCs.

Changes were made to the Residential Landlord Tenant Act This legislation makes some significant changes to the VRLTA, including authority for: landlords to have lease provisions for an early termination of the lease; real estate licensees to go to court and get judgment and possession against a tenant who appears in court; landlords or property managers to pay an abandoned security deposit to the Virginia Tax Department at the end of one year instead of having to hold that deposit in your real estate escrow account for seven years; and a bunch of other good stuff.

Some issues with the handling of renters’ escrow funds are fixed This new law clearly sets forth how escrow funds must be handled by real estate licensees. Most funds must be placed in the real estate escrow account within five business days of receipt. The legislation makes it clear that an application deposit must be deposited in the real estate escrow account within five business days of the approval of the tenant’s rental application. l

IN PROGRESS: FIRST-TIME HOMEBUYERS SAVINGS ACCOUNTS This has potential for prospective homeowners throughout the commonwealth: We want to create “first-time homebuyer’s savings accounts.”

Just as Virginia 529 college savings plans allow individuals and families to contribute funds tax free for a future college education, these accounts would let people set aside money to be used for a first property purchase.

There were some questions about the fiscal impact of our original bill; banks were concerned with the additional regulatory responsibilities for handling these accounts. Rather than rush a scaled-back version of the bill, we asked the legislation be held for further study so it’s ready for the 2014 General Assembly.

We rely on your ideas and your feedback — our goal is to make and keep Virginia a Realtorfriendly state.

Stay informed. Get involved.

And bookmark RealtorsChoose. com where you can keep track of all our work on Capitol Square.

www.VARealtor.com

accessibletech ANDREW KANTOR

Pinteresting times Amongst all the apps and tools and sites out there, every now and then one comes along that really does seem to be a great fit for Realtors.

Pinterest might well be one.

Pinterest is often called a “social scrapbooking site.” In a basic sense (a very basic sense) it lets you collect and share interesting images — your own or those you find online.

But unlike photo-sharing sites like Flickr, Pinterest is broader in that it also lets you share things you find online. It’s the electronic equivalent of clipping a picture from a magazine and pinning it to the office bulletin board.

But it can be a lot more.

It goes like this

A typical Pinterest pinboard is full of various images from around the Web — in this case the theme is "Interesting Data."

First, you sign up for a (free) Pinterest account. Once that’s set, you create one or more “pinboards” where you’ll post pictures you find. For example, you might create boards called “Really Cool Logos,” “Things That Make Me Mad.” Then, as you browse the Web or shoot your own photos, you add images to those boards. (Pinterest makes it very easy to do this — see the box appropriately titled, “Making Pinterest easy to use.”)

It’s that simple.

So let’s say you’re browsing around and see a photo of the cutest puppy ever. Boom! Add that image to your Pinterest “Cute Animals” pinboard, essentially saying to people, “Look at what I found.”

Find cool pictures, post them to your Pinterest page. Repeat. You end up with a growing collection of, well, neat stuff. (Food is a very, very popular Pinterest subject.)

There are two points to this.

First, you’re helping spread cool stuff around by sharing the images you like.

Second, the things you pin can act as a visual bookmark to the sites you found them. For example, a picture of a beautiful garden might serve as a link back to a site all about great landscaping.

And not only can you share things with others, you can — and this is important for our purposes here — allow other people to pin to the boards you create.

Invite some high school friends

Volume 20 ● Issue 3

to add to your pinboard “Things That Remind Me of Growing up in Newton,” or have your professional friends add to “Best Ideas for an Office Party.”

It’s all about sharing images of things that move you. It’s a simple concept, but everyone has seen something online that they want to share. Pinterest just makes it easy.

And it turns out it’s a great tool for real estate.

Pin with your clients You’ve got clients looking for… you know, a pretty house with a nice yard and a fancy kitchen. What’s “pretty”? What’s “nice”? What’s “fancy”? Forget words — use Pinterest to share images of exactly what they’re looking for.

JUNE/JULY 2013 33

accessibletech Create a Pinterest pinboard for each client and invite them to share on it. Have them pin images of the things they like — home styles, neighborhoods, interior features, and so on. Like getting a haircut: It’s easier to show than to tell.

Encourage them to pin pictures of particular rooms (“This is the kind of master bath we want”) or furnishings (“We want bookshelves like this”).

You can pin things to that board that seem to jibe with a client’s ideas — “What do you think of this kind of backyard setup?”

You’ll find it’s a lot easier to share ideas by sharing images,

especially considering that 80 percent of Pinterest users are women.

(Speaking of demographics, half of them have kids.)

You oughta be in pictures (wah-WAH) You should make Pinterest part of what you might call your online portfolio. That’s ‘what people find when they find you online.’ Most people turn to the Internet to look for a home — or a Realtor. When they find you they should be able to find your Pinterest profile.

Put a link on whatever your main Web presence is. Add a line on your business card. Include your

Pinterest link in your marketing materials. Let people know that you’re sharing images the same way some people write, “Find me on Facebook” or “follow me on Twitter”. Then go out and find those images to share.

Suggestions: • Create a pinboard for your area, like “Things to Love About Xebico County” or “Springfield in the Summer.”

• Share — er, pin — images to those boards. Take them yourself, get them from friends, find them online. It would be great for someone looking for a home in your area to say, “Hey, I found

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Fobby Naghmi BRANCH MANAGER

703-313-8491

Fobby.Naghmi@CarringtonMS.com Alexandria, VA Branch NMLS #202352

Carrington Mortgage’s 25 Day Pledge • Available for Purchase or Refinance Loans, restrictions apply* • Loans closed in 25 Days from complete submission to funding • 25 Calendar Days – not business days!

*Carrington will process any qualifying loan from the time a complete loan file is submitted to underwriting to the time it funds within 25 calendar days, or the company will apply a closing cost credit of $500 to the loan once the loan closes. In order to receive the closing cost credit, any delay that causes the loan to close more than 25 days after submission to underwriting must be due to Carrington’s independent processes. If the delay is due to the borrower’s action or inaction, the closing cost credit offer will be void. This offer excludes some loan programs such as brokered loans, Jumbo loans, 203k loans, USDA loans, any product with non-delegated underwriting and condo projects requiring approval. Exclusive to loans in VA. Please check with your Loan Officer for details and qualifying loan programs. Offer is subject to revision or cancellation at any time. © Copyright 2007-2013 Carrington Mortgage Services, LLC. headquartered at 1610 E. Saint Andrew Place, Suite B-150, Santa Ana, CA 92705. Toll Free # (800) 561-4567. NMLS Unique Identifier # 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org. VA: Licensed by the Virginia State Corporation Commission #MC-5382. NOTICE: All loans are subject to credit, underwriting, and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions, and programs are subject to change without notice. Carrington Mortgage Services is not acting on behalf of or at the direction of HUD/FHA or the federal government. All rights reserved.

34 JUNE/JULY 2013

www.VARealtor.com

this great Pinterest board from a Realtor there…”

• Share images of cool things people have done with their homes — a particularly nice yard, a great kitchen setup, smart use of space, and so on.

• Pin neat ways people have marketed their homes. In other words, if something inspires you, Pinterest is a perfect place to bookmark and share it.

• Have some fun, too — pin decorating ideas, fun food, cute animals, and whatever else turns

you on. The people who find you should see you as a person, not just a Realtor.

• (You can cross-post your pins to Facebook and Twitter, too.)

Of course, keep in mind that sometimes it’s just as good to receive as it is to give — so don’t forget to browse through and look at what other people are pinning on Pinterest. Whether they’re Realtors or civilians, you’ll find good ideas, bad ideas, and all sorts of neat stuff to tickle the creative part of your brain.

(When you do, Pinterest is there with “repinning.” When you see something you like on another user’s pinboard, one click will add it to yours.)

Pinterest’s popularity (and value) has been growing for a simple reason: So many of us are visually oriented, and pictures affect us in ways that wordy descriptions don’t.

Take advantage of this, and show your colleagues and clients what they may have been missing. l

Three things to think about 1. Copyright. In almost every case, whoever created an image is happy to have it appear on Pinterest — it’s great exposure. But that’s not always the case, and occasionally Pinterest users have been asked to remove something.

(If you’re asked, obviously, remove the offending pin.)

2. Time sink. Once you start browsing, it can be easy to get caught up in all… those… pretty… pictures. No joke.

3. Pressure. They call it “Pinterest stress.” As one story put it, it’s the “nagging suggestion to be perfect, even more perfect than any non-catalog human being could ever hope to be.” Luckily there’s pinterestfail.com, where people showcase how they tried to copy what they saw… and didn’t quite make it.

Volume 20 ● Issue 3

Realtor.com’s listings all have “PinIt” buttons.

Making Pinterest easy to use You’ll be pinning images from two places to Pinterest: your own device (computer, phone, tablet) and from the Web. The folks at Pinterest have been very good about making (free) tools to make all of that easy.

They’re all at about.pinterest. com/goodies.

From your computer: Just upload it right from your Pinterest page. (Look for the plus sign in the upper right.)

From a Web site: Pinterest has free addons for the Chrome and Firefox Web browsers, and a “bookmarklet” that works with any browser. They all do similar things: make it easy to add any image you find online to your Pinterest board.

From your phone or tablet: There are apps for Android phone and tablets, iPads, and iPhones that let you browse and add to Pinterest boards.

JUNE/JULY 2013 35

rpacreport As of May 8, 2013, 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 Heidi Schlicher at heidi@VARealtor.com or (804) 264-5033. Or, if you want to get invested today, please visit www.realtorschoose.com/contribute.

Crystal R Investors ($2,500)

Golden R Investors ($5,000)

Charles Burnette Burnette Real Estate Sales, Blacksburg

Billy Chorey Chorey & Associates Realty, Suffolk

Dennis Cronk Poe & Cronk Real Estate Group, Roanoke

John Dickinson Hall Associates Union Hall

Joe Funkhouser Coldwell Banker Funkhouser, Harrisonburg

Deborah Baisden Prudential Towne Realty Virginia Beach

Mary Dykstra MKB, REALTORS Roanoke

Dorcas HelfantBrowning, Coldwell Banker Professional, Virginia Beach

Steve Hoover MKB, Realtors® Roanoke

Thomas Jefferson, III Joyner Fine Properties Richmond

John McEnearney McEnearney Associates Alexandria

John Powell Long & Foster Real Estate Colonial Heights

Cindy Hawks Keller Williams Realty Virginia Beach

Shane McCullar Keller Williams Realty Alexandria

Muraji Nakazawa Re/Max Allegiance Herndon

Forrest Odend’hal Long & Foster Real Estate, Gainesville

Golden R Associations ($5,000) • Northern VA Association of Realtors, Fairfax • Charlottesville Area Association of Realtors®, Charlottesville Tom Stevens Coldwell Banker Residential, Vienna

Melanie Thompson Jack Torza Century 21 AdVenture Long & Foster, Realtors® Redwood, Fredericksburg Mechanicsville

• Richmond Association of Realtors®, Richmond • Roanoke Valley Association of Realtors®, Roanoke • Virgina Association of Realtors

all of Famers have contributed a cumulative H amount of at least $25,000 to RPAC.

36 JUNE/JULY 2013

• W illiamsburg Area Association of Realtors®, Williamsburg www.VARealtor.com

Crystal R Investors ($2,500)

Jason Outten The Buyer Brokerage LLC Ashburn

Karen Smith

RE/MAX Commonwealth Richmond

Trish Szego ERA-Elite Group, Realtors®, Fairfax

Jane Quill RE/MAX Presidential Fairfax

Bill White Joyner Fine Properties Richmond

Sterling R Investors ($1,000) Sterling R — Hall of Fame Sandee Ferebee Prudential Towne Realty, Virginia Beach Tom Innes RE/MAX Commonwealth, Richmond Robert Adamson McEnearney Associates, Inc., Arlington Elizabeth Atkinson ERA Atkinson Realty, Virginia Beach Julia Avent Re/Max Allegiance Arlington Dennis Bane Century 21 Valley Real Estate, Dublin James Barb Jim Barb Realty, Inc., Winchester C.C. Bartholomew Long & Foster Real Estate, Inc, Manassas Mary Bayat Bayat Realty Inc, Alexandria Mary Ann Bendinelli Weichert Realtors, Manassas Laura Benjamin Roanoke Valley Association Of REALTORS®, Roanoke Bradley Boland Keller Williams Realty, Reston Beckwith Bolle Carter Braxton Preferred Properties, Leesburg, VA Suzanne Brady Century 21 Adventure Redwood, Fredericksburg Patricia Buck McEnearney Associates, Inc., Potomac Falls Robyn Burdett Re/Max Allegiance, Chantilly Peggy Burke Long & Foster Real Estate, Woodbridge Bill Burke Long & Foster Real Estate, Woodbridge Keith Canty greg garrett realty.com, Newport News Amy Carder RE/MAX First Virginia Beach Dale Chandler greg garrett realty.com, Newport News David Charron Rockville Flo Chittenden Long & Foster Real Estate, Manassas Moon Choi Re/Max Presidential, Fairfax Vic Coffey RE/MAX All Stars Realty, LLC, Daleville Hugh Cross Cross Management, Suffolk Elizabeth Dalton NRVAR, Radford John Daly Rose & Womble Realty, Virginia Beach Sheila Dann Abbitt Realty Co, LLC, Newport News Mary Duarte Century 21 Colonial Realty Colonial Heights Claire Forcier-Rowe Coldwell Banker Elite, Fredericksburg Virgil Frizzell Long & Foster Real Estate, Reston Beverly Frowen Long & Foster Real Estate, Inc, Manassas Anne Gardner Charlottesville Area Association of Realtors, Charlottesville Elizabeth Gatewood Napier REALTORS® ERA Colonial Heights Gail Gowin Prudential Towne Realty, Virginia Beach Art Grace Hunzeker & Lyon, PC, Manassas Suzanne Granoski Keller Williams Realty Alexandria Lynn Grimsley RE/MAX Peninsula, Newport News George Grundy George Grundy & Assoc Realty, Petersburg Delk Hamaker K.D. Hamaker Properties, Inc. Arlington Todd Hetherington Century 21 New Millennium, Lorton Jeanne Hockaday Virginia Country Real Estate, Ordinary

Volume 20 ● Issue 3

Michael Hogan RE/MAX Commonwealth Mechanicsville Amy Hudson RE/MAX 8 - Blackburg, Blacksburg Nathan Hughes Bandazian & Holden, Richmond Charles Hulett Keller Williams Realty, Chesapeake Anne Innes RE/MAX Commonwealth Richmond Philip Innes RE/MAX Commonwealth Richmond Jo Anne Johnson Westgate Realty Group, Inc, Falls Church Sita Kapur Arlington Premier Realty Arlington Karen Kidwell Long & Foster Real Estate, Falls Church Betty Kingery Mountain to Lake Realty, Rocky Mount Patricia Kline Avery Hess Realtors, Locust Grove Jody Korman RE/MAX Commonwealth, Richmond Vonda Lacey Lacey Real Estate Group, Fishersville Barbara LeFon Rivah Realty LLC, Montross Pamela Lewis Realty Executives, Peninsula Newport News George Lyons Long & Foster Real Estate, Woodbridge K Michael Maloney Keller Williams Realty Richmond Keith May Cottonwood Commerical, Harrisonburg Jim Mellen RE/MAX Peninsula at New Town, New Town, VA Thomas Meyer Condo 1, Inc., Falls Church Brooke Miller Long & Foster Real Estate, Inc, Fredericksburg Percy Montague Montague Miller & Co Westfied , Charlottesville Fred Morgan 1st Choice Real Estate, Staunton Vinh Nguyen Westgate Realty Group, Falls Church Susan Oh New Star Realty & Investment, Mc Lean Gwen Pangle Pangle and Associates, Leesburg, VA Gail Penman William E. Wood & Associates, Virginia Beach Fatima Pereira-Shephard Long & Foster Real Estate, Manassas Robert Perkins Long & Foster Real Estate, Inc, Colonial Heights Tracy Pless Long & Foster Real Estate, Reston Kimberly Plourde Exit Realty Central , Norfolk Denise Ramey Roy Wheeler Realty Co., Charlottesville Anne Rector Rector-Best Property Management Alexandria Katy Richards Joyner Fine Properties, Midlothian Christine Richardson Weichert Realtors Vienna Peter Rickert Coldwell Banker Residential Bk Alexandria Zinta Rodgers-Rickert Re/Max Allegiance Fairfax Fetneh Schacht Long & Foster Real Estate, Herndon Henry Scholz MKB, Realtors, Roanoke R. Scott Shaheen Long & Foster REALTORS, Richmond Boyd Smith RE/MAX Commonwealth Chesterfield Katrina Smith Long & Foster/Webber & Assoc., Winchester Kimber Smith Prudential Towne Realty, Williamsburg Patricia C. Snyder Coldwell Banker Four Seasons, Mt. Jackson Susan Spellman Long & Foster, Realtors, Williamsburg

JUNE/JULY 2013 37

rpacreport Sterling R Investors ($1,000)

Sterling R Associations ($1,000)

Cindy Stackhouse Century 21 Redwood Realty, Dumfries Vickie Stamper Appalachian Realty Co., Inc. Marion Wes Streans MO Wilson Properties, Woodbridge Patricia Steele Coldwell Banker Professional, Virginia Beach Minnie Stevenson 1st Choice Real Estate, Staunton Suzy Stone Century 21 AdVenture Redwood, Fredericksburg Mack Strickland Strickland Realty, Chester Patricia Sury Montague Miller & Co. Downtown, Charlottesville Derrick Swaak Tutt Taylor & Rankin R.E, Mc Lean Richard Thurmond William E. Wood & Associates Virginia Beach Christine Todd Northern Virginia Association of Realtors, Fairfax Loretta Trayer Mountain Sotheby’s Intl Realty, Banner Elk Kevin Turner Century 21 ALL-SERVICE-B Bedford Mary Ann White RE/MAX Commonwealth, Mechanicsville Shanna Wiseman Parr & Abernathy, Hopewell Jon Wolford Long & Foster Real Estate, Springfield

• Blue Ridge Association of Realtors • Fredericksburg Area Association of Realtors • Greater Augusta Association of Realtors • Harrisonburg-Rockingham Association of Realtors • Lynchburg Association Of Realtors • New River Valley Association of Realtors

The other 2013 elections: House of Delegates You know — or should know — that this year we’re electing a new governor, lieutenant governor, and attorney general. Commercials are already filling the airwaves, and millions of dollars are pouring into the campaigns.

But don’t forget the other elections: All 100 seats of the Virginia House of Delegates are open for election.

Nine delegates are retiring*. At least 30 more are facing strong opposition. The political climate on the House floor will be changing this year, and it’s RPAC’s job to help make sure the new House is as Realtor friendly as possible. On June 11, Virginia holds its primary elections. That’s the first chance to help make sure that happens.

We know some of you will vote straight party line. The rest will take into account various political, economic, and even social issues when choosing a candidate. We hope you’ll consider the impact a candidate will have on your business as well.

38 JUNE/JULY 2013

We hope you’ll vote Realtor friendly.

The nine delegates who are retiring were all supporters of our efforts to make Virginia a great place for Realtors to do business.

That means that we are potentially losing nine Realtor-friendly voices in the General Assembly — and that’s why the elections (the June primaries and the November general election) are critical.

Luckily, thanks to your help and commitment to RPAC, we’ll be able to support Realtor-friendly candidates — incumbents and challengers — during the entire 2013 election.

The VAR RPAC Trustees have already endorsed the following candidates, who we hope you’ll support in the June 11 primary; a full list of endorsed House candidates will be released later this year: • Delegate Rosalyn Dance (D – Petersburg; Chesterfield, Dinwiddie, and Prince George counties; cities of Hopewell and Petersburg)

• Delegate Todd Gilbert (R – Woodstock; Page, Rockingham, Shenandoah, and Warren counties) • Speaker Bill Howell (R – Fredericksburg; County of Stafford; City of Fredericksburg) • Delegate Joe May (R – Leesburg; Clark, Frederick, and Loudoun counties) • Delegate Bobby Orrock (R – Thornburg; Caroline and Spotsylvania counties) • Delegate Bev Sherwood (R – Winchester; Frederick and Warren counties; City of Winchester) Remember: On June 11 and November 5, vote Realtor Party!

And don’t forget to head to RealtorsChoose.com to get the latest about which candidates support your business — and which Realtors are helping support them.

*

Delegates Crockett-Stark, Cox, Iaquinto,

Johnson, Merricks, Purkey, Putney, Scott, and Tata

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 8:30 a.m. to 5:00 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 Erika Almstead Professional Standards Administrator erika@VARealtor.com

If you’re interested in marketing or advertising opportunities Ask for Christine Hodges Marketing and Communications Mgr. christine@varealtor.com

To reach our Legal Hotline

If you’d like to have someone speak at your association or brokerage

To find out about conferences, seminars, and professional education

Ask for Lynne Wherry Director of Member Outreach lynne@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 and Information Analyst andrew@varealtor.com VAR Member Service Partners

See your member discounts at www.VARealtor.com/ discounts

Liberty Mutual, home, auto, and renters insurance

Call (804) 622-7955*

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VARealtor.com/LegalHotline

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Our Interim CEO is Rick Lugg (804) 249-5703 rick@VARealtor.com

Volume 20 ● Issue 3

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For information about RPAC Ask for Heidi Schlicher Director of Political Operations heidi@varealtor.com VAR 2013 Leadership Team

Mary Dykstra, ABR, CRS President MKB, REALTORS® Roanoke (540) 989-4555 mary@varealtor.com Bradley Boland President-Elect Keller Williams Realty Reston (703) 437-1717; bradleyboland@gmail.com Deborah Baisden, GRI Vice-President Prudential Towne Realty, Virginia Beach (757) 486-4500 deborah@deborahbaisden.com Bill White Treasurer Joyner Fine Properties Richmond (804) 967-2740 bill.white@hoynerfineproperties.com Trish Szego, CRB, CRS Immediate Past President ERA Elite Group Haymarket (703) 359-7800; trishszego@gmail.com Rick Lugg Interim CEO (804) 249-5703; rick@varealtor.com

JUNE/JULY 2013 39

VARworks With great power VAR President Mary Dykstra, Roanoke

to let their association know what needed to be fixed.

That’s why we offer so many ways for you to engage in the political process. Every year we work to attract as many of you as possible to our Day on the Hill event in Richmond, where hundreds of Realtors converge on the offices of Capitol Square to meet with state legislators. We encourage you to make the annual trip to Washington, D.C., for NAR’s annual mid-year conference, to represent Virginia on the national level. There are people you can call in every region of the state to say,

“There oughta be a law.”

Not everyone has access to the combination of political influence and openness that Realtors do. So don’t just sit there — you have the power to make a difference.

527

428

1,100

Virginia Realtors who attended NAR’s midyear conference in Washington, D.C.

Virginia Realtors who attended the 2013 Virginia Realtor Day on the Hill in Richmond.

Realtors who took a survey on behalf of the Federal Reserve, which asked VAR to help it gather information to use for planning the nation’s finances.

Many professions have associations, and most of them work hard for their members — offering benefits and services, and advocating for them with governments.

The Realtor organization is something special, though.

Although it’s one of the most influential organizations in both the country and the state, it also stands out in the way we encourage members to engage in the political process.

Most of the laws we work to pass on the state level come from Realtors in the field — front-line Realtors who simply took the time

40 JUNE/JULY 2013

www.VARealtor.com

Don’t let your membership go to waste.

Your VAR membership comes with lots of perks, including some great discounts from our Member Service Partners — savings on cell plans, insurance, shipping, and more. Missing out on them is like, well, letting it go to waste.

Find them all at VARealtor.com/Discounts

Another great member service brought to you by the Virginia Association of REALTORS®

WE ARE

We are ONE Family. We have ONE destiny.

We share ONE Thing …

We are now the NUMBER ONE real estate company in the United States!* Keller Williams Realty ranked “Highest in Overall Satisfaction for Home Buyers and Sellers Among National Full Service Real Estate Firms.”

We invite you to find out why.

Contact Paul DiCicco at the Virginia Region and find out if Keller Williams is right for you as an agent or as an owner.

Call or email your confidential inquiry today!

Virginia and West Virginia Region 703-335-8000 • va@kw.com

Alexandria/Kingstowne, Alexandria/Old Town, Arlington, Chantilly, Charlottesville, Chesapeake/Greenbrier, Chesapeake/Western Branch, Fairfax, Fairfax Gateway, Fredericksburg, Great Falls, Lakeridge, Leesburg, Loudoun Gateway, Lynchburg, Manassas, Martinsburg, McLean, Midlothian, Newport News, Reston/Herndon, Richmond North/Hanover, Richmond West, Stafford, Tysons/Vienna, Virginia Beach/Hilltop, Virginia Beach/Town Center, Winchester Each Keller Williams® Realty office is independently owned and operated. | If you are currently a franchise owner, please disregard as this is not intended as a solicitation.

*Based upon publicly available agent count figures for the United States, as of February 6, 2013.