April 2012 - Wisconsin Real Estate Magazine by Lauren Bizorik

Fair Housing Month

Legislative Session Ends

Tips and tricks to avoid discrimination.

See the WRAâ&#x20AC;&#x2122;s legislative victories.

April 2012 $5.00

MAGAZINE

Generation What We Can Learn From Young Consumers

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North Central Home of the Best AgentsÂŽ

table of contents

april 2012

vol.

28, no. 7

15 6 features 6

Generation Y: What We Can Learn from Young Consumers

2 10

Fair Housing Tips

Avoid mistakes with these fair housing marketing tips and advertising discrimination information, and test your knowledge with a fair housing quiz.

Best of the Legal Hotline and Fair Housing

Product Showcase: How to Reach the Next Generation: Gen Y

What does Fair Housing Law say regarding pets versus service animals? Age restrictions for residents? Find out.

Make sure your marketing plan for Generation Y is on the right path with these resources from the WRA.

wisconsin real estate magazine

articles

Know how to market to this growing demographic and see what five featured Gen Y consumers have to say about REALTORS® communicating with them.

april 2012

Saying Goodbye and Starting Anew The WRA lost one of its most integral staff members in February after a short but intense battle with cancer.

Uncovering the Truth: Procuring Cause Scratching your head about procuring cause specifics? Learn about the myths and the truths.

When it Comes to Housing, Always Play Fair! This month’s sales tip highlights the legalities of Fair Housing Law and even the issue of unintentional discrimination.

The Closing Bell: Legislature Ends Historic Legislative Session

A summary of the WRA’s legislative victories passed in the historic legislative session that ended in March.

Kathleen Falk Lacks REALTOR®-Friendly Record With the recall election approaching, see the real estate-related voting record of one of Gov. Walker’s main opponents.

News

inside the wra

with mike theo

Top News Stories in and Around the Industry United Way Honors the Stark Family for Service to Community

Wisconsin Receives Millions to Ease Foreclosure Crisis

United Way of Dane County

Milwaukee Business Journal (WI) (09/30/08)

Squeezing Low Income Families Minnesota Public Radio (MN) (09/21/08) Olson, Dan

Saying Goodbye and Starting Anew

In Minnesota’s Twin Cities, a wave of home foreclosures has pushed more people into the rental United Way of Dane County recognized the Stark The state of Wisconsin is due to receive nearly $39 apartment sector. The result is an intensifying Family with the 2008 Tocqueville Society Award million in federal funds to stabilize neighborhoods demand on Minneapolis and St. Paul’s rental housing for outstanding service to the Dane County and stave off a spate of abandoned homes. According stock, so much so that the vacancy rate is very low community and United Way. The to HUD and Gov. Jim Doyle, the funds are separate named after and her, rents Gale are willon bethe remembered he WRA staff lost a dear friend, and the WRA rise. This, inlong turn, means lowTocqueville Society Award celebrates from approximately $9.2 million the government is after we are all gone.working families face higher monthly rents organization part of its Gale Foster income and acknowledges people or families, lost awarding thesoul, city ofwhen Milwaukee, where the foreclosure lost her short but battle9.9with cancer even though their income hovers at unchanging such as the Starks, who have made rateintense is currently percent. HUDonis awarding the These things levels. won’t Since replace Gale ourCities current sense vacancy February 24, 2005, theor Twin apartment a major impact on the quality of 2012. funds via its Neighborhood Stabilization Program, of loss, but they will ensure that her memory rate has dipped from 7 percent to closer toand 4 percent. life in Dane County through their exceptional service under which almost $4 billion is being allocated to all she has meant tomonthly us will rents live in ourthat hearts and our Gale was the WRA’s Vice President forstate Administrative Services, Average over same time span are and commitment to the community. local and governments for the redevelopment Bill Malkasian organization forever. an all-encompassing department responsible for accounting, up more than $25, rising to more than $850. The of abandoned and foreclosed houses. WRA President St. Paul-based Wilder Foundation recently reviewed budgeting, human resources, membership, dues billing, building City Housing Authority Receives And would incomenow, data asfor Gale several Twin have Cities Sites: and 100-Unit Grant and equipment management, insisted, on to theresearch next counties. we The move organization’s Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia development Not and computer software chapter at the Theofmajor found that the WRA. number peoplechanges in those Just for hardwareauthority support.is due For 34 years, Gale The city of Milwaukee’s housing markets paying tooindustry much for their rental in the real estate over the past hermoney dedication, talent and to receive $6.7 million indemonstrated federal Hope VI housing years will double from around 70,000 several and the WRA senior staff to build 100 new housing compassion units. The 100each unitsand will every day, and currently a whopping by create 2010. over the topast several140,000 months, be constructed in a 2.5-mile area and will includehelped build what through her example, say amoment partial solution be for aSome unique in timewould for exciting 29 public housing and is affordable rental units; now recognized as one of the best the U.S. government to reverse course on changes and improvements at the WRA. nine affordable housing units income-eligible staffs for in the nation. housing policy and substantially increase Our talented staff, which pulled together families; and 62 moderately priced, open-market funding for rental assistance, particularly condominiums. HUD Secretary so For 27Steven of thoseC.34Preston years, I had the distinct helpremarkably for working during families.these trying few comments, “Milwaukee’s honor housing haswork side-by-side months, is eager and willing to begin a andauthority pleasure to demonstrated it has the with leadership to lead new that ensures meet the needs Gale. The WRAand staff is very much a NARera Releases FreeweFHA revitalize neighborhoods family, and and transform lives. of our members as those needs change Gale was equal parts our den Toolkit Cities like Milwaukee change and grow and need to Wisconsin REALTORS® with a dynamic newAssociation marketplace. We are mother, drill sergeant, bookkeeper and revitalize housing to make sure many aren’t priced (10/30/08) excited to work with an equally talented grandmother. She set our high standards, out.” Milwaukee is one of a half-dozen housing leadership team that has and she enforced them with vigor. I will NAR and the WRA are eagerchallenged to help authorities nationwide to receive new Hope VI the organization undertake never forget her infectious laugh, her you meet the currenttochallenges of thea grants. troubledstrategic economy.planning We know that you robust process, to passion and hard work, her innovative need resources you close think creativelythat andcantohelp redesign an problem solving, and, most of all, her Housing Study Delay Frustrates transactions,that and will you preserve, need themprotect at little association love for her family, her staff and her Advocates or no cost. NAR has just released Milwaukee Journal Sentinel (10/07/08) Williams, Scott and promote homeownership as an wellallorganization. new FHA Toolkit online for FREE to help you get as private property rights and the ability of our members to Two years after promising the Milwaukee metro Connections Anymore clients the financing they need in a credit-strapped Gale will be sorely missed butPersonal never forgotten. She will be missed succeed for generations to come. The WRA leadership and area’s first major housing study in three decades, Minneapolis-St. Paul Business Journal (09/29/08) Grayson, environment. It is one of the most comprehensive not just in our Planning daily operations, which will never be the same, the Southeastern Wisconsin Regional Katharine staff stand ready to do thishas and areproduced, excited toand begin. toolkits NAR ever it’s available to that part of our Commission (SEWRPC) is but still with struggling to get the personality that is gone forever. But® she ® all REALTORS right now by visiting the link below. St. Paul, Minn.-based REALTOR Teresa Boardman will hope never the be forgotten. effort launched. Proponents study willThe leadership of the WRA has approved They also have launched a new page called “NAR says Flickr, Facebook and other social networking namingaffordable the education center in our building after Gale. That way, serve as a catalyst for improving housing sites make it easy to meet people whoMike might Theo Helps You Navigate the Current Economy” where opportunities throughout thousands the city’s suburbs. But REALTOR® members and association of students, you can find dozens of great products and resources, eventually become clients. While many professionals commissioners have yet to assemble leaders who an useadvisory the center every readsites the plaque on business the like the FHA Toolkit, for free or at a steep discount. are year usingwill these to make contacts committee to oversee the wall research set learn a specific and or either about Gale stop for a minute to remember Visit www.Realtor.org/NARHelpsYou for links to andor companies use them to conduct background timetable for conducting the her.survey. We willPhil alsoEvenson, be naming the WRA or Staff of thenew Yearworkers, Award after these great programs and products. checks recruit many simply want the commission’s executive director, said other issues Gale, so with the annual reading of whywith thispeople top staff is to connect whohonor have similar interests. keep getting in the way. The delays have frustrated Home Loans Going Strong, Albeit a According to Boardman, “The hard sell is dead. It housing advocates the most. Bethany Sanchez, doesn’t work door-to-door, and it doesn’t work on Bit Tighter, in Area vice president of the Metropolitan Milwaukee Fair Wisconsin State Journal (10/17/08) Balousek, Marv social networks.” On Flickr, Boardman connected Housing Council, laments, “It’s been a long time with a fellow photographer who eventually used her Note: Thecommission Foster familyhas has established two memorial funds in Gale’s honor and memory. Contributions Despite the ongoing national credit crisis, property coming.” The Pewaukee-based services to purchase a home. can be review made to at: professionals say mortgage money remains available not conducted a comprehensive of Edgewood housing High School business classes and Agrace HospiceCare Inc., throughout southern Wisconsin to home buyers patterns since the 1970s. Foreclosures Push Rents Higher, Edgewood High School (Business Classes) Agrace HospiceCare Inc. with solid credit. Ron Steinhofer, manager of

2219 Monroe Street Madison, WI 53711

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5395 E. Cheryl Parkway Madison, WI 53711

april 2012

www.wra.org/wrem

Real Estate

Wisconsin Real Estate Magazine™ is published by the WISCONSIN REALTORS® ASSOCIATION. Trademark issued pursuant to Wisconsin state statute; federal trademark is pending.

notes from the wra

Rob Keefe, Chairman rob@rkeefe.com

Distinguished Service Award Applications Available

Renny Diedrich, Chairman-Elect rdiedrich@coldwellhomes.com Steve Lane, Treasurer lanes@firstweber.com

At the January 1985 Board of Directors meeting, the WRA established the Distinguished Service Award. The purpose of the award is to provide recognition to those REALTORS® who have provided many years of leadership and distinguished service to the Wisconsin REALTORS® Association.

Michael Theo, cae, President mtheo@wra.org

All current members, local association executives and employees of the Wisconsin REALTORS® Association with at least five years membership or employment are eligible. Application deadline is June 29, 2012.

Editorial Staff:

Applications are available on the WRA website at www.wra.org/Resources/Membership/Awards/Distinguished_ Service_Award.

Michael Theo Publisher

WRA Announces Largest Statewide and Regional Companies to Serve on 2012-2013 Board of Directors

Robert Uhrina Managing Editor

Lauren Bizorik

In accordance with the WRA bylaws, the size of the three largest statewide companies and seven regional companies shall be determined by counting the number of company employees who are members of the WRA according to the WRA membership records as of February 28 of that year. The following companies will be represented on the 2012-2013 WRA Board of Directors:

Editor

Joe Leschisin Senior Designer

Largest Statewide Companies

Wisconsin Real Estate Magazine, USPS 597-850, ISSN 1548-0526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage paid in Madison, WI and additional mailing offices. An annual subscription rate of $5 is included in membership dues and a copy is mailed to every paid REALTOR® and affiliate member of the association. Nonmember subscription rate: $60. POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337.

Shorewest REALTORS® – Milwaukee Coldwell Banker The Real Estate Group – Appleton First Weber Group REALTORS® – Milwaukee Largest Regional Companies Region One Keefe Real Estate – Lake Geneva

Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper credit in all articles or commentaries, and the WISCONSIN REALTORS® ASSOCIATION is provided with a copy of any reprint.

Region Two First Weber Group Inc. – Madison

Advertising of third party products and services herein does not imply endorsement by the WRA unless specifically stated. Furthermore, the WRA does not endorse, approve, or otherwise warrant the accuracy or legality of any information or content contained in advertisements. Any questions regarding advertising policies should be directed toward the editor.

Region Four First Weber Group – Wautoma Region Five First Weber Group Northern Wisconsin – Wausau Region Six Edina Realty Inc. – Eau Claire Region Seven Century 21 Rautmann/Schils – Sheboygan

NAR’s REALTOR Benefits® Program When you take advantage of NAR’s REALTOR Benefits® Program, you can choose from a variety of valuable offers and savings from industry leaders. Plus, every partner provides products and services that you can use every day in both your business and personal life. For more details, visit www.realtor.org/realtor_benefits.

Marketing Entertainment® Promotions FedEx® FedEx OfficeSM Lowe’s REALTOR.com® REALTOR Team Store® Ifbyphone Technology Dell DocuSign® Hewlett Packard Lenovo

legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: editor@wra.org website: www.wra.org

facebook: www.facebook.com/wisconsinrealtors twitter: www.twitter.com/wirealtors linkedin: www.wra.org/linkedin youtube: www.wra.org/youtube wisconsin real estate magazine

Region Three Coldwell Banker Residential – Mequon

april 2012

relay® SentriLock LLC Xerox zipForm® Ifbyphone Insurance Victor O. Schinnerer & Company Inc. E&O Insurance Liberty Mutual REALTORS® Core Health Insurance REALTORS® Dental Insurance

Financial Services & Personal Protection American Home Shield IdentitySecure® REALTORS® Federal Credit Union Educational Tools ABR SRES e-PRO SFR GREEN Designation BPOR – New!

Office Solutions FedEx® FedEx OfficeSM OfficeMax® Travel & Automotive Avis Budget Chrysler – New! Hertz

As of 3/28/2012. Subject to change.

REALTOR benefits®

Introducing Your New WRA Member Benefit! The WRA has partnered with Office Supplies 2U/Emmons Business Interiors (OS2U/EBI) as your new exclusive member benefit. OS2U/EBI is a Wisconsinbased company providing exceptional service and high-quality office supplies and furnishings for more than 70 years.

As a REALTOR® member, you’ll have the ability to shop more than 32,000 items in the OS2U catalog at discounts of 45% off most items. As a member, you will receive discounted prices on: •

General office supplies

•

IT supplies and accessories

•

Remanufactured toner cartridges

•

Breakroom and janitorial supplies

•

Health care and first aid supplies

•

Presentation products

•

Special-order products

•

Custom printing

•

Custom stamps

•

Office furniture and design

The application and ordering process is quick and easy! Download the application at www.wra.org/OS2U_credit_application and mail or fax to a customer service representative. Please allow 24 hours for the application process to complete. Online ordering: Once the application has been processed, you will be contacted by a customer service representative with your individual username and password, as well as to offer training and provide access to a user guide to help you navigate easily throughout the OS2U website, www.OS2U.com.

Office Supplies 2U Bob Brooks (608) 441-8900 Ext. 26 (888) 508-6728 Ext. 639 bobb@os2u.com www.os2u.com

Phone ordering: If you wish to order by phone, you will receive an account number. OS2U representatives are available Monday through Friday from 8:00 a.m. to 5:00 p.m. To place an order by phone, call (888) 508-6728, or fax your order to (888) 296-8220. Delivery: OS2U orders are generally delivered the following business day, provided the orders are placed before 4:15 p.m. (CST). Furniture orders: EBI’s experienced sales team can help with designing efficient, productive and ergonomic work environments for your office. EBI offers quality new and used furniture, as well as proven product lines of carpet, wall coverings, window treatments and artwork. Contact Tod Dean at (800) 324-1691 ext. 424 or visit EBI online at www.ebiweb.com.

wisconsin real estate magazine

april 2012

Emmons Business Interiors Tod Dean (608) 441-8900 Ext. 18 (800) 324-1691 Ext. 424 Cell: (608) 556-1349 todd@ebiweb.com www.ebiweb.com www.wra.org/wrem

news monthly wisconsin housing report

Home Sales Up for Eighth Straight Month View all housing statistics at www.wra.org/housingstatistics

By David E. Clark, Economist, C3 Statistical Solutions

> WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - FEBRUARY 2012

YTD-2012

YTD-2011

% Change

15,030 5,987 $117,000

16,598 5,278 $122,000

-9.4% 13.4% -4.1%

Median Price FEB-2012 FEB-2011 % Change

Existing Home Sales FEB-2012 FEB-2011

% Change

$118,950 $135,000 $116,500 $115,000 $80,500 $85,000

1,188 562 314 579 185 285

22.6% 12.9% 16.3% 17.2% 6.3% 1.8%

Statewide

FEB-2012

FEB-2011

% Change

New Listings Closed Sales Median Sales Prices

7,751 3,116 $115,000

8,003 2,695 $117,00

-3.1% 15.6% -1.7%

Region Southeast South Central West Northeast Central North

ebruary home sales rose for the eighth straight month, with existing home sales up 15.6 percent from February 2011, according to the latest monthly report by the Wisconsin REALTORS® Association (WRA). Home prices were down in February, but by a modest 1.7 percent, to $115,000 compared to one year ago. This increasing sales trend began last summer and has continued at a healthy pace throughout the fall and winter. “It’s very encouraging to see sustained growth in home sales,” said Rob Keefe, Chairman of the WRA board of directors. He noted that sales over the last five months have seen growth rates in double digits without any distortion from federal incentive programs. He also noted that 30-year fixedrate mortgages have been under 4 percent for the last four months, and the Federal Reserve has continued to keep short-term interest rates low to help nurture the recovery and avoid a double-dip recession. “We’re hopeful that the combination of moderating prices and low mortgage rates will carry this momentum into the next six months, which are the prime homebuying season in Wisconsin,” said Keefe. Existing home sales grew in every region of the state in February, with most increasing wisconsin real estate magazine

$124,000 $135,000 $115,000 $111,450 $82,550 $89,512

-4.1% 0% 1.3% 3.2% -2.5% -5.0%

over 10 percent compared to the same month last year. The strongest growth was seen in the Southeast region, which increased 22.6 percent over the period. Home sales in the Northeast and West regions grew between 16.3 percent and 17.2 percent, and the South Central region was up 12.9 percent over the past year. More modest growth was seen in the Central region, which grew 6.3 percent; and the North region increased slightly, up 1.8 percent, over the period. Many of the rural counties in these two regions have experienced higher unemployment rates than the more urbanized counties in the state, which dampened home sales. The state’s seasonally adjusted unemployment rate continues to move in the right direction, with the January rate at 6.9 percent, which is more than a percent lower than the national rate that stands at 8.3 percent. This is the first time the Wisconsin unemployment rate has been below 7 percent since December 2008. The improvement is due to a small uptick in jobs in the state in January but also in part from a slight reduction in the labor force as well. “Over the past year, Wisconsin job growth has been flat,” said WRA President and CEO, Michael Theo. He noted that the national april 2012

969 498 270 494 174 280

economic picture continues to be somewhat mixed, but there has been some recent good news. “National job growth in February showed some hopeful signs of life, with payroll employment up 227,000 for the month,” said Theo. Total unsold inventory of homes has fallen significantly over the past eight months. In July 2011, there were nearly 72,000 unsold homes in the state, and that figure dropped to just fewer than 53,000 last month. New listings of homes were also down in February relative to last year. “Combining strong sales with fewer listings should continue to liquidate inventory, which is important if prices are to bottom out,” said Theo. The Wisconsin Housing Affordability Index, which shows what percentage of a median-priced home that a buyer with the median family income can afford, increased to 283 from a revised 271 in January. “With affordability so high, this is a great time for buyers to work with a local REALTOR® to identify the best market opportunities for them,” said Theo. For more information, contact David E. Clark, Economist, C3 Statistical Solutions Office phone: (414) 803-6537

wisconsin real estate magazine

april 2012

www.wra.org/wrem

Generation What We Can Learn From Young Consumers By Dan kruse

he landscape of the real estate industry is constantly changing, and real estate professionals need to be equipped with the tools and knowledge to better understand what it is that todayâ&#x20AC;&#x2122;s consumer wants. What is important to them, how they communicate, and how they process information are all relevant to how Generation Y consumers make their housing decisions. With the average first-time homebuyer rounding 31 years of age and the average REALTORÂŽ being 54 years of age1, there becomes an obvious age gap between the two. In order to better serve this fastgrowing demographic, we must recognize the Generation Y consumer groupâ&#x20AC;&#x2122;s habits and their communication styles and needs. In this article, I will explain how I believe the Gen Y consumer habits and communication styles operate to better provide our readers with the ability to best serve the real estate needs of this growing demographic of homebuyer. wisconsin real estate magazine

april 2012

Who is the Gen Y Consumer?

In the real estate industry, this means exposure of your listings to the websites consumers are looking through. Not only company and agent websites, but thirdparty real estate search sites are also critical. More importantly, these thirdparty sites are trusted by the Gen Y consumer. They are seen as the simplest way to get maximum information in a single site, similar to third-party travel sites such as Orbitz or Kayak.

Generation Y, also known as “Gen Y” or the “Millennial Generation,” are individuals born from the late 1970s to the early 1990s. This age group is not particularly a brand loyal group of consumers as most of them grew up in the bulk-purchase era. When superstores offer thousands of products at varying discounted costs, the average consumer no longer cares which brand they bring home with them, just as long as it was the cheapest product on the shelf. Going in this direction in every aspect of their consumerism, The Gen Y homebuyer has no particular loyalty to certain brands when it comes to searching for their new home. Furthermore, this group was there for the birth of social media, and the value placed on peer acceptance and reviews is incredibly high. They are constantly looking for reviews, blogs and status updates that rate the products they are interested in. The influence of their social media sphere is critical, and they trust this group’s values as their own. Most importantly, this is a generation group made up of information gatherers. Through technology, information has been incredibly accessible for most of their lives, and they will most likely accumulate as much information as possible before making any major decisions. If they do not have easy access to information on the product, they will simply move on until they do. Mobile information is incredibly important – the time we live in today is always on the go. Most often, these information gatherers will do their research while standing in line at Starbucks or waiting at a stop light. And the Gen Y consumer is efficient in using all corners of the day to learn new information and communicate with others through a variety of mobile devices.

Needs of the Gen Y Consumer The Gen Y consumers are relatively simple to market to because their needs transpire to only two things: (1) they want easy access to information on their product, and (2) they want detailed information on the product they’re researching. In real estate, this means providing detailed information on all listings including multiple photos or videos. Basically, the more information available, the better. If this level of detail and information is not provided up front, the Gen Y consumer most likely won’t bother to search deeper for it.

Marketing to the Gen Y Consumer So now that we’re starting to understand the makeup of the typical Gen Y consumer, how do we best market to them? It is imperative that the product you are marketing must be easily found where they spend the majority of their time: the Internet.

wisconsin real estate magazine

april 2012

Also, a strong Google presence is a must-have for REALTORS®. If you can’t “Google it,” it’s irrelevant. High Google placement for your company’s listings and services is huge in the online marketing competition today. Many companies and agents spend a hefty amount in Search Engine Optimization (SEO) to have their websites go to the top of the list on Google. Websites dedicated to individual listings are also becoming more popular. An individual website for each listing advances the company’s Google placement as well as serves as a great marketing platform for that particular listing. Another option to enhance the Google placement is with a strong social media presence, such as popular professional blogs or a YouTube channel with high ratings and views. YouTube is undeniably growing in popularity. The do-it-yourself video blogging site gives anyone the ability to express their message through a highly trafficked website. YouTube is no longer necessarily just a website to find a silly video of a sneezing panda; it has transformed into an unlimited video resource center to learn anything you can imagine. From how to install a garbage disposal to how to stage a home for an open house, there is nothing you cannot find on YouTube. The more creative real estate marketers are seeing this as an opportunity to provide value to the general public on their area of expertise. YouTube is a peer review site, and your videos can be shared and viewed easily to gain the much-needed credibility and grab the attention needed for optimal marketing. The last and certainly most important major online resource that Gen Y consumers are using is social media. Most Gen Y consumers rely heavily on their social networks for peer review and acceptance. Some of the more popular sites actively used today are Facebook for social interaction and LinkedIn for business connections and networking. Both are extremely relevant in the real estate industry. On Facebook, members can post requests to their social network asking for advice on professional services, such as, “does anyone know of a good accountant?” The Gen Y consumer trusts the members of their social network to give them personal reviews to help their decision-making process. This is sometimes referred to as the “hive mind.” Like a hive of bees all working together to accomplish a single goal, so is the decision-making process of consumers in a social media setting. If multiple friends on Facebook respond saying they had www.wra.org/wrem

Homeowner Opinions an extraordinary experience with a certain business, it is going to be the most obvious choice in that consumer’s mind. Having a presence on social media sites like Facebook is extremely crucial to the hive-mind thinking process and marketing to the Gen Y consumer in general. The other large social media resource effectively used in the real estate industry is LinkedIn. This site has been primarily seen as a professional networking site, used as a way to connect with past and current colleagues or to search and connect with others for employment opportunities. However, many real estate professionals are now using this online network as a way to connect with specific interest groups, such as investors, to promote their services and inventory. This new online prospecting method can be very effective, if used correctly, to connect with Gen Y and technologically savvy buyers of today.

Creating the Ideal Customer Service Experience Once a Gen Y consumer completes their due diligence, they will need to get to the next level of gathering information about the property or product by communicating with someone. Connecting personally is an important aspect of the homebuying process. In order to create a quality customer service experience, a quick response time is critical. The quicker the response time, the better chances you will have to attach to the consumer; conversely, the slower the response time, the greater likelihood you will lose the prospective customer. Many times this initial communication will be in the form of e-mail or text message. Being able to speak the same language of the consumer will help incubate the relationship and eventually turn it into a face-to-face meeting. Being able to provide close to instant response time, communicate in their preferred method, and provide quality information will accelerate earning the trust of the consumer and creating a quality customer service relationship. Once a strong relationship is established, they will most likely remain a long-term client and turn into an advocate with a strong referral network. The Gen Y consumer will use their peer review process through social media to tell their extended sphere of influence what a great homebuying experience they had with you. The most important piece of information for real estate professionals working with this generation is to be constantly accessible and relevant. Consumers want their information to be fast, easy and completely thorough, and being able to continuously and dependably fulfill their needs will ensure success with the Generation Y demographic of today. 1. Age and demographic data taken from NAR at www.realtor.org.

Dan Kruse is currently broker-owner and acting president for Century 21 Affiliated with 35 offices and 550 active agents throughout Wisconsin and Illinois. Dan has a bachelor’s degree in real estate and business management from the University of Minnesota, is a past president and REALTOR® of the year of the Rock Green REALTORS® Association, and currently sits on the board of directors for the Wisconsin REALTORS® Association. Dan is also an active member of the Wisconsin YPO chapter and sits on the President’s Advisory Council for Century 21 International.

wisconsin real estate magazine

april 2012

What method of communication do Gen Y members prefer with a REALTOR®? Justin Hubbard, Janesville Phone and e-mail are best for me. It’s also important for REALTORS® to keep their websites up-to-date, so when they’re busy and can’t talk, I can at least see the new home my REALTOR® just listed, for example. Leslie Hill, Waukesha I would prefer that our REALTOR® contact me by calling my cellphone number or e-mailing me, which I can also get on my phone.

Alyssa Klopatek, Shorewood I’m old enough to value an old-fashioned phone call and young enough to love the immediacy of texting, but when it comes to my REALTOR®, I prefer e-mail. As a first-time homebuyer, I have many questions, and e-mail allows longer responses than texting. Plus, I can send an e-mail any time of the day or night and know that I’m not interrupting my REALTOR® while in a meeting, with another client, or enjoying downtime.

Kasey and Ben Hock, Green Bay We wanted a REALTOR® who could adapt to all communication styles – especially e-mail and cellphone. I think it’s important for REALTORS® to have their e-mail account accessible via phone so they can receive messages and respond in a timely manner. So much of realty is about timing, and if a REALTOR® cannot respond quickly to a situation, they are going to be left with unsatisfied clients. Vanessa and Brad Day, Milwaukee With so many available avenues of communication, especially when it comes to Gen Y individuals, it is important for a REALTOR® to make themselves available through a number of different outlets.

legal

Uncovering the Truth: Procuring Cause

The Fifth Installment of Articles Dispelling Real Estate Untruths

By cori lamont

lthough often anxiety-riddled, the conversation regarding the payment of commission is expected in every real estate transaction for consumers and licensees alike. And regardless of whether it is a buyer’s or a seller’s market, procuring cause commission questions come into the WRA Legal Hotline in a regular stream.

Typically, these Legal Hotline conversations begin and end with the REALTOR® asking the attorney, “Who is procuring cause?” This is a challenging and frustrating conversation for both the legal hotline attorney and REALTOR® member because, frankly, the attorney cannot determine which broker is procuring cause or decide which broker an arbitrator, mediator or judge will determine is deserving of the cooperating compensation. What is procuring cause? Generally, procuring cause is a standard of performance to the entitlement of cooperative compensation established between brokers by the Multiple Listing Service (MLS). It is also commonly used as the standard of performance in standing policy letters between brokers/companies, compensation agreements pertaining to single transactions, or a combination of these. The real trick with procuring cause: there is not one single act that determines procuring cause. Therefore, the legal hotline attorney does not get to say that activity “X” always creates procuring cause. Below, this discussion highlights the most common misconceptions relating to procuring cause. For more information, please review the April 2010 Legal Update, “Cooperative Commissions and Procuring Cause” at www.wra.org/LU1004 and the April 2002 Legal Update, “What is Procuring Cause?” at www.wra.org/LU0204.

Urban Legend #1: The Licensees’ Commission Comes First The Truth: The first and most important thing is to serve the buyer and seller by closing the transaction. Basically, licensees cannot place their commission issues and needs before the needs of the parties. There is plenty of time afterward to determine who gets what part of the commission.

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Urban Legend #2: Showing the Property or Writing the Offer Establishes Procuring Cause The Truth: The issue of procuring cause comes down to one concept: who caused the sale of the property? Determination of procuring cause is a conclusion drawn from a full, knowledgeable consideration of all of the facts of the case. In an MLS transaction, entitlement to compensation is determined by the cooperating broker’s performance as procuring cause of the sale or lease. Procuring cause is the MLS standard of performance to earn a commission. Procuring cause looks at the uninterrupted series of events that result in the sale of the property to the buyer. There are no black and white rules that determine entitlement to commission. Therefore the privilege of automatic procuring cause is not granted to the broker who drafts the offer or the broker who first shows the property, commonly called the threshold rule. Also, there are no actions that in and of themselves preclude a broker from being procuring cause. For instance, the fact that no agency disclosure is given or signed, or that the broker did not inspect the property, does not necessarily mean the broker is not procuring cause. A caseby-case review of all facts and circumstances must be conducted to determine who is procuring cause. The preeminent written authority explaining procuring cause, as applied in REALTOR® arbitration hearings, is the Code of Ethics and Arbitration Manual, specifically “Appendix II to Part Ten – Arbitration Guidelines (Suggested Factors for Consideration by a Hearing Panel in Arbitration),” which may be viewed online at www.realtor.org/CEAM.nsf/1ea4bd9041b3346c862569a6006f7c 75/448362d102506f1086257234006f6ea6?OpenDocument. That document indicates: “While a number of definitions of procuring cause exist, and a myriad of factors may ultimately enter into any determination of procuring cause, for purposes of arbitration conducted by boards and associations of REALTORS®, procuring cause in broker to broker disputes can be readily understood as the uninterrupted series of causal events which results in the successful transaction. Or, in other words, what ‘caused’ the successful transaction to

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come about. ‘Successful transaction,’ as used in these Arbitration Guidelines, is defined as ‘sale that closes or a lease that is executed.’” If the brokers cannot agree as to the entitlement and/or division of the selling commission, the dispute should be submitted to the local REALTOR® association for resolution. According to Article 17 of the Code of Ethics, REALTORS® agree to arbitrate their contractual disputes arising out of their relationship as REALTORS®. Arbitration panels will consider whether, under the circumstances and in accord with local custom and practice, the broker made reasonable efforts to develop and maintain an ongoing relationship with the purchaser. Did the first cooperating broker actively maintain ongoing contact with the purchaser? Or did the broker’s inactivity, or perceived inactivity, cause the purchaser to reasonably conclude that the broker had lost interest or disengaged from the transaction, known as abandonment? In other instances, a purchaser, despite reasonable efforts by the broker to maintain ongoing contact, may seek assistance from another broker. The panel will want to consider why the purchaser “abandoned” the first broker and whether the broker’s conduct caused the purchaser to terminate the relationship, known as estrangement. This can be caused, among other things, by words or actions. Panels will want to consider whether such conduct caused a break in the series of events leading to the transaction and whether the successful transaction was actually brought about through the initiation of a separate, subsequent series of events by the second broker. REALTORS® also may consider local association mediation to resolve the contractual disputes regarding commission.

Urban Legend #3: Brokers with Buyer Agency Create Automatic Procuring Cause The Truth: The fact that the buyer has a buyer agency agreement does not automatically make the buyer’s broker procuring cause of the sale. A buyer agency agreement does not supersede or dictate procuring cause.

Urban Legend #4: Procuring Cause is Always the Standard Even When it’s Not an MLS Transaction The Truth: Procuring cause is not the universal standard of

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performance in all real estate transactions, as licensees often assume. Procuring cause is the automatic standard in MLS transactions. If a property is not listed in the MLS and sold by another MLS participant, then the listing and cooperating brokers must affirmatively agree on cooperative commissions and select a performance standard whereby the cooperating broker may earn that commission. That standard of performance may or may not be procuring cause. Outside of the MLS, there are no automatic offers of cooperation and compensation. In each of these situations, the offers of cooperation and compensation, standards of performance for earning a commission, and other accompanying procedures and mechanisms are not provided by the MLS safety net with which many members are used to working. It is difficult to determine how to handle the commission when there is no standard of performance – neither broker knows what must be done to earn the commission. Procuring cause automatically applies only with MLS properties. Outside of the MLS, brokers may agree to whatever performance standard they believe is appropriate. They may decide that whoever writes the offer or whoever first shows the property should be paid. They do not have to determine entitlement to compensation according to procuring cause. Therefore, the listing broker and potential cooperating brokers need to agree to cooperate with one another and determine the amount of commission that the listing broker will pay, what the cooperating broker must do to earn the commission, who will pay the commission, to whom it will be paid, when it will be paid and any other terms and conditions of the compensation agreement. Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.

Fair Housing Marketing Tips

EALTORS® writing promotional copy, including the remarks for MLS listings, should be careful to avoid Fair Housing Law violations. Real estate advertising cannot intentionally or unintentionally state a preference for particular persons or reflect an intent to exclude certain persons based on membership in a protected class. This applies to advertising in all media including the MLS, websites, blogs, tweets, faxes, e-mail, radio, television, fliers, signs, posters, banners, newspapers and billboards.

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Test Your Ads • • •

The following are some helpful advertising guidelines for REALTORS®.

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Avoid Strategies that Target Less Than the Whole Market •

In-house exclusive: sellers who want no MLS and no yard signs may have good reasons for this private approach, such as reducing burglary or not wanting neighbors to know, but be careful because it also may be indicative of a discriminatory intent. Do not direct an ad to only one segment of the community. Do not advertise in a limited geographic area. Do not use only particular publications or editions of newspapers. Do not use only small-circulation publications that are designed only for certain religious or ethnic groups. Do not use only selected sales offices.

What is the real message of the ad? Does it exclude any groups? Does it describe the property and not the target market? Will the people in the community perceive the ad as indicating a preference or limitation?

Use of Human Models • •

Do not use only adult or only white models. Represent all races and ages, as well as families with children and persons with disabilities. Vary or rotate the people shown in ads so all groups in the market area are featured.

applied: does the ad suggest to an ordinary reader that a particular class is preferred or “dispreferred” for the advertised housing? This “ordinary reader” is a reasonable person who is neither the most suspicious nor the most insensitive reader. There generally will be no liability if no potential preference is apparent to the ordinary reader.

Other Traps to Avoid Local “Code” Words: Be aware of the perception of the local community regarding whether certain words or phrases have a hidden meaning or signify a preference or limitation. Are certain “code” words or phrases used that signify certain traits to the local market? For example, does the phrase “good schools” really mean few minorities reside in the community? Always use the most inclusive, neutral language and don’t risk offending anyone with your words.

Words Used in Advertising

Use of the Equal Housing Opportunity slogan or logo is not mandatory in all real estate advertising, but it alerts consumers to the concept of fair housing, shows the broker’s good faith commitment to fair housing, and demonstrates intent to abide by the fair housing law.

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Ordinary Reader Test

Housing for Older Persons: An agent may advertise that the property is housing for older persons or is limited to persons 55 or older if the agent has reliable documentation to confirm this status, such as a statement from the project association, manager or attorney asserting that housing qualifies for the exemption. Brokers would also be well advised to not advertise with terms like “adult housing” or “adult complex” because the enforcement agencies likely will interpret this to be discriminatory advertising excluding families with children if there is no indication that it is an exempt “housing for older persons” project. The authorities prefer that other language, such as “senior housing” or “retirement community” or “55-and-over housing,” be used instead.

Discrimination in real estate ads often will not be obvious at first blush. Concerns may arise from the context, tone or sequencing of words and phrases. Whenever there is a question whether particular terms or phrases might violate fair housing law, the “ordinary reader test” should be

For more information, visit the Fair Housing/ Equal Opportunity in Housing REALTOR® Resource page online at www.wra.org/fairhousing, and see the April 2007 Legal Update, “Avoiding Discrimination in Advertising and Racial Steering,” online at www.wra.org/LU0704.

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“traditional.” Avoid symbols or logos that may suggest or imply discrimination. When stating directions, try to avoid referencing racial, ethnic or religious landmarks. Do not use “crippled,” “mentally ill,” “deaf,” “retarded,” “blind,” “singles” or “mature persons.”

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Use of Equal Housing Opportunity Slogan and Logo

Do not use words describing the seller, buyer, landlord or tenant, such as a “Jewish owner,” “Hmong home,” or “adult building.” Describe the property! Do not give the impression that one group is preferred over another. Avoid catchwords such as “restricted,” “exclusive,” “private,” “board approval” or wisconsin real estate magazine

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Avoiding Fair Housing Advertising Discrimination

air housing laws impact what REALTORS® may or may not say when advertising property for sale or rent.

The cardinal rule for avoiding fair housing liability in advertising is to describe the property and property features – not the buyer or tenant! The Federal Fair Housing Act and Wisconsin law make it unlawful to make, print or publish any notice, statement or advertisement with respect to the sale or rental of a dwelling that indicates a preference, limitation or discrimination based on a person’s membership in a protected class, such as those on this page.

Race: a person’s membership in a group possessing characteristics and traits transmitted by descent, such as White, African American, Oriental, American Indian or Hispanic. Color: a person’s skin color. National Origin/Ancestry: the country where a person’s parents, grandparents and other ancestors originated or came from, such as Mexican, Japanese, Polish, Philippine, French, Puerto Rican, Irish, Italian or Chinese, to name a few. Real estate ads should never refer to a “Latino neighborhood,” “white family home” or “no Hmongs.”

Sex: gender; male or female. Sexual Orientation: whether a person has a sexual orientation to partners who are male, female or of both sexes. (Wisconsin law) It is permissible to use the terms “master bedroom,” “mother-in-law suite,” and “bachelor apartment,” as physical descriptions of housing units, but not “females only” unless a same-sex roommate is sought for a shared dwelling unit.

Religion: a person’s religious or spiritual beliefs and practices or denominational affiliations, such as Protestant, Catholic, Jewish or Muslim. An ad may use the legal name of an entity that contains a religious reference (Queen of Peace Catholic Home) or a religious symbol (a cross), but only if the ad contains a disclaimer stating “This owner does not discriminate on the basis of race, color, religion, national origin, sex, handicap or familial status.” Descriptions of the property (“apartment complex with chapel,”) or services (“kosher meals available”) are permissible. Use of terms (“Merry Christmas”), symbols (Santa Claus or the Easter Bunny) or images (Valentine’s Day graphics) relating to certain religious holidays does not violate the law. wisconsin real estate magazine

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Familial/Family Status: whether persons are members of families in which one or more children under 18 years old live with a parent, legal custodian or their designee. It also includes pregnant women and persons seeking legal custody of a minor. Wisconsin law also includes persons seeking physical placement or visitation rights of a minor child; and persons whose household includes one or more adults or minors in their legal custody, or pursuant to physical placement, visitation rights or a court-ordered guardianship. Marital Status: whether a person is single, married, divorced, separated or widowed. (Wisconsin law) Age: the age of persons at least 18 years old. Children under 18 years of age are protected on the basis of family status, not age. (Wisconsin law) Ads that limit the number or ages of children or state a preference for adults (unless the property meets “housing for older persons” standards), couples or singles are prohibited. One exception may be stating occupancy limits in compliance with governmental restrictions. On the other hand, descriptions of the property (“two bedroom” or “cozy family room”) or services and facilities (exercise room or warmwater pool) are not considered discriminatory.

Handicap/Disability: whether a person has a physical or mental disability that substantially limits one or more major life activities, has a record of such a disability, or is regarded as having such a disability. Examples include hearing, mobility and visual impairments, and chronic mental illness, HIV positive, mental retardation, multiple sclerosis and epilepsy. It does not include a person who currently uses illegal drugs or controlled substances. In Wisconsin, it includes a person using illegal drugs or controlled substances if the person is in a supervised drug rehabilitation program. It is lawful to describe the property, such as “great view” or “fourth-floor walk-up;” the services or facilities, like “jogging trails;” the neighborhood, like “walk to the bus stop;” or the conduct required of residents, for example, “nonsmoking.” Ads may describe accessibility features, such as a wheelchair ramp, and express a preference for persons with disabilities if the housing was specifically designed for persons with disabilities, but can never specify “no wheelchairs” or “no service animals.”

Lawful Source of Income: the source of a person’s income provided that it is legal. This includes any coupon or voucher representing monetary value such as Social Security, public assistance or unemployment compensation. (Wisconsin law) For guidance regarding whether certain words and phrases violate the federal law, see www.hud.gov/offices/fheo/disabilities/ sect804achtenberg.pdf and www.hud.gov/offices/fheo/library/ part109.pdf.

Fair Housing Quiz

Test Your Fair Housing Knowledge!

1. Under Fair Housing Law, which of the following is not acceptable in a real estate advertisement? A. B. C. D.

“Historic home with wide front porch.” “Condo with well-equipped exercise center and pool.” “Near Korean grocery.” “Tree-lined streets with sidewalks.”

2. A tenant who uses a wheelchair wants to install grab bars in the bathroom and lower the kitchen cabinets. What may the landlord legally do? A. B.

C. D.

Refuse any requested alterations to the rental unit. Ask the tenant to put money into escrow and sign a restoration agreement. Require the tenant to pay a higher security deposit to cover any damages. None of the above.

5. Which statement is true under the Americans with Disabilities Act (ADA)?

8. A mother and her four children cannot live in a two-bedroom apartment:

A. B.

Women Gays and lesbians Chinese scientists Students

The prospect on the telephone spoke with a Middle-Eastern accent. The applicant’s verified income is insufficient per the owner’s screening standards. The two male applicants are models, and the owner thinks they are gay.

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Refuse to rent office space to drug and alcohol rehabilitation counselors. Evict a domestic abuse victim for damage caused by her ex-spouse’s assault. Advertise that a house is for sale in a “nice, quiet Jewish neighborhood.” Refuse to sell a house to Russian buyers because they do not speak English.

7. The condominium buyer has asked to keep an emotional support animal. Which is false? A.

Real estate offices are places of public accommodation and must provide any needed auxiliary aids. Places of public accommodation must make reasonable efforts to remove physical barriers that impede access by persons with disabilities. Model homes are not subject to the ADA if they do not include a sales office. All of the above.

6. Which is legal under Wisconsin Fair Housing Law?

4. An apartment owner may legally reject a tenant applicant on what basis?

an exception to its no-pet rule as a reasonable accommodation.

3. Which of the following is not a protected class under Wisconsin law? A. B. C. D.

The applicant has a history of mental illness but is not a danger to others.

C. D.

The buyer’s written request should show a relationship between the buyer’s ability to function and the companionship of the animal. The condo association should ask for a detailed medical history from the buyer’s psychiatrist or doctor. The condo association should not impose any extra fees for the animal. The condo association should make

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B. C. D.

If there is no playground in the neighborhood. Because HUD’s occupancy policy assumes two persons per bedroom. Unless they are in a separate building just for families. None of the above.

9. Which statement best describes the proper use of the Equal Housing Opportunity logo? A. B. C.

It is mandatory in all residential real estate ads and on all yards signs. If a newspaper ad is one-half page or larger, the logo must be 2” x 2”. This optional logo shows a commitment to Fair and Equal Housing Opportunity. This logo must appear in all personal promotional brochures.

10. An agent shows the parents of a blind toddler a house at the end of a quiet cul-de-sac and does not show them another house on a busy corner that also meets their specifications. A. B.

This is illegal steering. The two houses are similar so the agent shows the one on the quiet street to save time. A good agent knows what is best for the buyer and picks the right houses to show them. This is illegal blockbusting.

ANSWER KEY: 1. C, 2. B, 3. D, 4. B, 5. D, 6. A, 7. B, 8. D, 9. C, 10. A

Choose the best answer to these questions:

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best of the legal hotline and fair housing law with tracy rucka

NO CHILDREN

HOUSING FOR OLDER PERSONS

A broker has a new listing for a condominium unit. The condominium declaration has the following provision: “Age Restriction: Permanent occupancy of residential units shall be limited to adults and children not less than twelve (12) years of age.” The broker understands that this provision of the declaration is a violation of Fair Housing Law; can the broker market this property to a family with children?

The broker was asked to list a condominium with bylaws and a declaration that states “no children,” and the seller wants this information included in the marketing. What if this were a condominium for people aged 55 and older?

The 1988 Fair Housing Amendments Act created new protected classes, which have the right to sue persons who commit housing discrimination. Familial status was among those classes. Similar protections are provided in Wis. Stat. § 106.50, Wisconsin’s open housing law, which prohibits discrimination in housing based on family status. Although one might initially assume that this is discrimination based on age, it appears to be discrimination based on family status. Under Fair Housing Law, age discrimination applies only with respect to persons at least 18 years of age. A declaration or other document provision prohibiting occupancy by minor children is legally unenforceable. If the association attempts to discourage or prohibit a family with children from occupying, significant legal liability could result. The broker may refer the condominium association to legal counsel to review the condominium documents. The condominium association may consider having legal counsel review and amend the governing documents to comply with current federal and state law including fair housing standards. For further discussion, see pages 5-7 of the Legal Update 98.03, “Thirty Years after the Federal Fair Housing Act,” at www.wra.org/LU9803.

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Under the federal and state statutes, it is unlawful to refuse housing to any family with children under the age of 18, including women who are pregnant, unless the housing project meets the definition of housing for older persons. There are three categories under this definition: 1.

Housing that is provided under state and federal programs specifically for the purpose of accommodating elderly persons.

62-and-over housing: Housing that is “intended for, and solely occupied by persons 62 years of age or older.” No conditions are attached as long as all residents are of this age.

55-and-over housing: At least 80 percent of units must be occupied by one person in each unit who has attained the age of 55, and policies are published and procedures are adhered to that demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older. For additional guidance under federal law, see the questions and answers at www.hud.gov/offices/fheo/library/hopa95.pdf.

The broker may refer the condominium association to legal counsel to review the condominium documents to assure the association properly qualifies as housing for older persons.

hotline highlights

cont’d

For further discussion, see pages 6-7 of the Legal Update 98.03, “Thirty Years after the Federal Fair Housing Act,” at www.wra.org/ LU9803 and the “Best of the Legal Hotline: April is Fair Housing Month” in the April 2010 edition of the Wisconsin Real Estate Magazine at www.wra.org/WREM/Apr10/FairHousingMonth.

WISCONSIN 55-AND-OVER A condominium is listed and is designated 55 + with no “regular tenant” below the age of 14. The seller told the broker reviewing the documents that no more than five units in the complex can be sold to a person younger than 55. The seller asked that the broker advertise this as a “55 +” building. If the broker advertises as a 55 + building, is it discrimination because no one under 14 can live there? The two policies seem to be at odds. Under Wisconsin law, the only time a limitation as to age may be asserted is if the condominium is housing for persons 55 and older. The Wisconsin “55 or over” exemption is found in Wis. Stat. § 106.50(5m)(a)(1)(a) at docs.legis.wisconsin.gov/statutes/ statutes/106.pdf. The exemption section states that nothing “prohibits discrimination based on age or family status with respect to housing for older persons.” This language permits the condominium to discriminate based on age if all of the exemption requirements are met. For the over-55 exemption, the owner or manager may document compliance by maintaining records containing written verification of the ages of the occupants of the housing. An owner or agent may require information concerning the age of any person who seeks to buy or rent housing for persons 55 years or older, for purposes of verifying compliance with the exemption.

ADVERTISING 55-AND-OVER HOUSING Can the broker advertise that a property is 55-and-over? The law also provides protection for real estate licensees and other persons who rely upon representations that a particular property qualifies for the “55-and-over” exemption. A person may not be held personally liable for monetary damages for discrimination in violation of Fair Housing Law if the person reasonably relied, in good faith, on the application of the 55-an-over exemption. A person may show reasonable reliance, in good faith, if the person can show that: a.

He or she has no actual knowledge that the housing is not or will not be eligible for the exemption.

The owner of the housing has stated formally, in writing, that the housing complies with the requirements for the exemption.

Thus brokers working with housing projects intended for persons 55 years or older may be well advised to request a written report or letter from the owner stating that the housing project complies

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with all legal requirements for the 55-and-over exemption under Wisconsin Fair Housing Law. The broker would comply with MLS rules in identifying the property as 55-and-over. In advertisements, the broker could arguably omit the information that the unit is 55-and-over given the unit could be sold to a person younger than 55 and not risk the project’s 80 percent occupancy requirements. The broker may consult with legal counsel with specific advertising questions.

PET POLICIES AND SUPPORT ANIMALS The agent has a rental property, and the policy does not allow pets. If a person looking to rent states that the pet(s) are for their disabled child, does the landlord have to allow them? The potential tenant is claiming that a small dog and a cat are for this child, but the agent is hesitant to believe that these would be considered service animals.

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Has a physical or mental disability – including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS-Related Complex, and mental retardation, that substantially limits one or more major life activities.

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Has a record of such a disability.

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Is regarded as having such a disability.

If a prospective tenant needs a support animal, he or she should request a reasonable accommodation, preferably in writing, from the owner. The request should state the disability if that is not readily apparent and indicate a relationship between his or her ability to function and the assistance of the animal. In addition, the tenant should include a letter or prescription from an appropriate professional, such as a therapist or physician, verifying the need for the support animal. The prospective tenant need not disclose the details of the disability nor provide a detailed medical history. Federal law does not include any specific requirements for registration or credentials for the animals involved. For details about making reasonable accommodations, see the Joint Statement of the Department of Housing and Urban Development and the Department of Justice: Reasonable Accommodations under the Fair Housing Act, online at www.justice.gov/crt/about/hce/ joint_statement_ra.pdf. Support and service animals that assist persons with disabilities are considered to be auxiliary aids and generally are exempt from an owner’s pet restrictions, pet deposits and extra pet rent. Service animals include guide dogs for persons with vision impairments, hearing dogs for people with hearing impairments, and emotional assistance animals for persons with chronic mental illness. See “Dealing with Pets in Rental Properties: Planning and Documentation Help Protect Property Managers” in the March 2006 edition of the Wisconsin Real Estate Magazine online at www.wra.org/News/ WREM/2006/March/Dealing_with_Pets_in_Rental_Properties/. Do these types of animals need to be registered somewhere, or is the agent to just believe that they are in fact service animals? The federal Fair Housing Act protects the right of people with disabilities to keep emotional support animals, even when a landlord’s policy explicitly prohibits pets. The law generally requires the owner or property manager to make an exception to the no-pet policy as a reasonable accommodation as long as the accommodation does not constitute an undue financial or administrative burden for the landlord or fundamentally alter the nature of the housing. A reasonable accommodation is a change in rules, policies, practices or services so that a person with a disability will have an equal opportunity to use and enjoy a dwelling unit or common space. Fair housing laws protect persons with disabilities. A person is considered to have a disability if the person:

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The broker should proceed carefully because the broker cannot and does not want to make any representations about the legal rights of the potential tenant or landlord. The broker/landlord may consult with legal counsel to discuss the landlord’s conduct and legal rights relating to service animals and support animals in rental properties.

ADA AND CONDOMINUM ASSOCIATIONS Does the ADA apply to a condo association? If a potential buyer or tenant has a service animal, must the association make an accommodation for the animal? While the search for an accessible home generally focuses on the home or dwelling unit, the ADA also plays a role for those who seek rental housing or housing in a condominium or homeowner association setting because the ADA applies to the accessibility of common-area features. The purpose of the ADA is to assure equal

access and services to disabled individuals. The ADA makes it unlawful to discriminate against people with disabilities. Title III of the Act prohibits entities that own, lease, lease to or operate a place of public accommodation from discriminating against persons with disabilities. The Department of Justice (DOJ) has amended its regulation implementing Title III of the ADA, which applies to public accommodations (private business) and commercial facilities. The ADA requires the DOJ to publish ADA design standards that are consistent with the guidelines published by the U.S. Architectural and Transportation Barriers Compliance Board (Access Board). Therefore, the Title III rule adopts new Standards for Accessible Design that are consistent with the ADA/ABA Accessibility Guidelines developed by the Access Board. The final rule also amends the existing Title III regulation to make it consistent with current policies and published guidance and to reflect the department’s experience since the regulation was first published in 1991. These revisions took effect on March 15, 2011. The following are some of the relevant highlights of the changes made in the updated ADA rules. •

Service Animals: The rule defines a “service animal” as a dog that has been individually trained to do work or perform tasks for the benefit of an individual with a disability. The rule states that other animals, whether wild or domestic, do not qualify as service animals. Dogs that are not trained to perform tasks that mitigate the effects of a disability, including dogs that are used purely for emotional support, are not service animals for the purposes of the ADA. The final rule also clarifies that individuals with mental disabilities who use service animals that are trained to perform a specific task are protected by the ADA. The rule permits the use of trained miniature horses as alternatives to dogs, subject to certain limitations. To allow flexibility in situations where using a horse would not be appropriate, the final rule does not include miniature horses in the definition of a service animal.

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Timeshares, Condominium Hotels, and Other Places of Lodging: The rule provides that timeshare and condominium properties that operate like hotels are subject to Title III, providing guidance about the factors that must be present for a facility that is not an inn, motel or hotel to qualify as a place of lodging. The final rule limits obligations for units that are not owned or substantially controlled by the public accommodation that operates the place of lodging. Such units are not subject to reservation requirements relating to the “holding back” of accessible units. They are also not subject to barrier removal and alterations requirements if the physical features of the guest room interiors are controlled by their individual owners rather than by a third-party operator.

$68 per month plus a small closing fee

Join us anywhere in Wisconsin, or create your own independent office Low Cost • High Earnings

Call Bill at Homestead Realty, Inc. 1-800-339-4444 • bill@homesteadrealtyinc.com

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Additional information may be found in the November 2010 “Growing Market for Accessible Housing” Legal Update at www.wra.org/LU1011. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

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Four Ways to Complete Your Mandatory Continuing Education

education

www.wra.org/CEcourse LIVE The Wisconsin REALTORS® Association is the top provider of real estate education in Wisconsin. Complete your 2011-2012 continuing education (CE) requirements by attending one of our live courses. The WRA hosts CE in all corners of the state, and course dates and locations vary. For a complete list of course options, visit www.wra.org/CEcourse.

THREE DISTANCE LEARNING OPTIONS If a live course does not fit your schedule, complete your CE through the WRA’s Continuing Education Distance Learning program. Courses are available in three formats: On Demand, DVD and Self-study booklets.

On Demand This is CE on your schedule! Distance Learning On Demand gives you the autonomy to take courses on your schedule and at your own pace – whenever and wherever – from your own computer. Using a Web browser, watch courses from the comfort of your own home, office or wherever there is a broadband connection. Best of all, you have no need to travel or experience sales downtime to meet your CE requirements. $27/members | $35/non-members

Save Even More with Four-Pack and Six-Pack Discounts (Residential On Demand Only) Save up to 22% on CE costs by purchasing On Demand education as a six-pack or four-pack discount.

Wisconsin real estate licensees must complete 18 hours of CE to renew their real estate licenses by December 14, 2012. To complete the hours, licensees complete six three-hour courses and successfully pass the corresponding exams. The six courses consist of four mandatory courses and two elective courses. Visit www. wra.org/CEcourse for a complete list of course options.

Six-Pack Discount The six-pack option allows you to take the four mandatory classes and two elective courses of your choice. Purchase the courses and electives for only $126/members and $180/non-members.

Four-Pack Discount

Mandatory Courses

Choose any combination of the mandatory and elective courses for only $92/members and $128/non-members. Pricing applies to residential CE On Demand only. Package pricing is not available in other residential formats or commercial courses.

(All licensees must take courses 1-4) Course 1 - Listing Contracts Course 2 - Offer to Purchase Course 3 - New Developments Course 4 - Business Ethics (fulfills NAR’s QET requirement)

Self-study Booklet These comprehensive, preparatory guides allow you to complete your CE curriculum at your own pace. You can then take the corresponding exam online when you are ready. Courses 1, 2, 3 and 4, and Electives A, B, C and D, are available in this handy format. The self-study booklets are easy to use and cover the material required to pass the exam. $27/members | $35/non-members

Elective Topics (Licensees must take two of the following) Elective A - Short Sales & Foreclosures Elective B - Environmental Matters Elective C - Other Approved Forms Elective D - Financing

wisconsin real estate magazine

DVD Complete your CE requirements in the comfort of your home with the WRA’s DVD distance learning option. This program involves watching a DVD and taking the corresponding exam online. All 2011-2012 CE courses are available through this program. Simply watch a video, take an online exam, score and print your certificate. $27/members | $35/non-members

april 2012

education

CRS Elective: Silver Bullet Solutions May 3, 2012 RANW | Appleton, WI Co-sponsored with Wisconsin CRS Chapter. Want to help clients make more informed and effective decisions? With Silver Bullet Solutions, you’ll learn how to be prepared with solutions to agent dilemmas in both buyer and seller situations. First developed for NAR’s convention, this course provides great tools and knowledge for REALTORS® at any level of their career. Instructor: Mike Selvaggio. Wisconsin CRS members receive a $20 discount! www.wra.org/CRS14

Broker Pre-license Course April 23-26, 2012

Commercial CE April 11 & 25, 2012 RANW | Appleton, WI

WRA Headquarters | Madison

For CE with a focus on commercial real estate, look no further than the WRA’s commercial CE courses! Upcoming courses in Appleton include:

Broker pre-license education will increase from 36 to 72 hours effective July 1, 2012. Applicants for licensing after July 1, 2012 will have to comply with the 72-hour requirement.

April 11, 2012: CE 3, 8:30 a.m. - 12 p.m.; CE 4, 1:00 p.m. - 4:30 p.m. April 25, 2012: Elective A, 8:30 a.m. - 12 p.m.; Elective D, 1:00 p.m. - 4:30 p.m.

BPOs: The Agent’s Role in the Valuation Process April 20, 2012 WRA Headquarters | Madison Whether you are experienced at preparing broker price opinions (BPOs) or are new to the business, this new NAR certification course will provide you with the knowledge and skills for evaluating properties, applying alternative valuation techniques, and efficiently generating accurate and professional reports. This one-day course is required to earn the certification. With this course, you will be able to: •

Prepare accurate and professional BPOs.

•

Evaluate market valuation tools for the most productive preparation of BPOs.

•

Identify and weigh all significant factors influencing the creation of a useful valuation.

In addition to the core course, a free one-hour webinar is required, which must be taken after completing the one-day core course.

This course covers contracts, trust accounts, escrow and closing statements, personnel business ethics, fair housing, specialty areas and more. Completion of sales pre-license education and passing the real estate sales exam are prerequisites. Completion of the Broker Pre-license Course, passing the broker exam and receiving the broker’s license fulfill the 2011-2012 Continuing Education credits. For more, visit www.wra.org/Broker_career.

Annual Convention September 9-11 Radisson Paper Valley Hotel | Appleton Mark your calendars! The WRA annual convention is the WRA’s showcase event of the year where thousands of REALTORS® gather together from all corners of the state for classes, networking and fun! Each year, we assemble top-name speakers from around the country to inspire and energize our business and to provide updates on important issues that impact our business. Convention is the perfect place to network with colleagues, recharge, complete continuing education courses and participate in dozens of workshops. Whether you are looking for new ideas, marketing tips or networking, you’ll find it all here.

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Illinois Changes Real Estate License Requirements Do you hold an Illinois sales or broker real estate license? If so, please note that Illinois licensing requirements have changed. No longer will there be a salesperson license; only a broker license for selling/non-managing broker or managing broker. Licensees must transition to a new broker license type by the April 30, 2012 renewal date. Through a partnership with the Illinois Association of REALTORS®, home study courses for transitioning from salesperson to broker or broker to managing broker are now available for purchase through the WRA’s website at www.wra.org/OutofStateLicensee. No transition course is required for licensees holding a broker license who wish to remain selling brokers. However, they must complete 12 hours of Illinois continuing education prior to April 30, 2012.

wisconsin real estate magazine

april 2012

www.wra.org/wrem

Course Schedule

Visit www.wra.org/CourseSchedule for full schedule. Sales & Marketing Management Date Course Location **Early

*Plus books early registration applies two weeks prior to the ** start of the course.

April 20, 2012 May 3, 2012

1-Day BPO Silver Bullet Solutions***

Madison Appleton

$110** $110**

Regular $120** $120**

A.T.D. $140** $140**

***Wisconsin CRS Members receive a $20 discount # Appraiser section members receive a discount

Conference and Conventions Date Event/Course

Location

September 9-11, 2012

Real Estate Continuing Education

Date

Course

April 10, 2012 April 11, 2012 April 11, 2012 April 11, 2012 April 11, 2012 April 11, 2012 April 12, 2012 April 12, 2012 April 12, 2012 April 14, 2012 April 16, 2012 April 18, 2012 April 18, 2012 April 18, 2012 April 18, 2012 April 18, 2012 April 19, 2012 April 19, 2012 April 24, 2012 April 25, 2012 April 25, 2012 April 25, 2012 April 25, 2012 April 26, 2012 April 30, 2012 May 2, 2012 May 3, 2012 May 5, 2012 May 7, 2012 May 8, 2012 May 9, 2012 May 9, 2012 May 9, 2012 May 10, 2012 May 10, 2012 May 10, 2012 May 10, 2012 May 10, 2012

2011-12 Course 4-DVD Racine 2011-12 Course 3-DVD Manitowoc 2011-12 Elective A-DVD Racine 2011-12 Courses 1 & 2 Duluth, MN 2011-12 Courses 3& 4 (Commercial) Appleton 2011-12 Courses 3 & 4 Cedarburg 2011-12 Elective D-DVD Racine 2011-12 Courses 2 & 1-DVD Kenosha 2011-12 Courses 3 & 4 – DVD Eagle River 2011-12 Courses 3 & 4-DVD Manitowoc 2011-12 Courses 4 & 3-DVD Kenosha 2011-12 Course 4-DVD Manitowoc 2011-12 Courses 2 & 1 Brookfield 2011-12 Electives A & C Marinette 2011-12 Electives A & C Cedarburg 2011-12 Courses 3 & 4 Duluth, MN 2011-12 Courses 1 & 2 Elkhorn 2011-12 Courses 2 & 1 Madison 2011-12 Electives D & A-DVD Kenosha 2011-12 Courses 3 & 4 Elkhorn 2011-12 Elective A-DVD Manitowoc 2011-12 Electives B & C Duluth, MN 2011-12 Elective A & D (Commercial) Appleton 2011-12 Elective A & D – DVD Eagle River 2011-12 Elective B-DVD Manitowoc 2011-12 Electives C & D Elkhorn 2011-12 Courses 4 & 3 Brookfield 2011-12 Elective A & C-DVD Manitowoc 2011-12 Course 1-DVD Manitowoc 2011-12 Courses 1 & 2 Rhinelander 2011-12 Courses 4 Sheboygan 2011-12 Courses 4 & 3 Madison 2011-12 Courses 1 & 2 Hayward 2011-12 Course 2-DVD Manitowoc 2011-12 Courses 3 & 4 Hayward 2011-12 Courses 3 & 4 Sturgeon Bay 2011-12 Electives C & D Brookfield 2011-12 Courses 1 & 2-DVD Kenosha

The 2009-2010 real estate continuing education is still available through On Demand, DVD and Self-Study Booklets: 1 – Listing Contracts Course 2 – Offer to Purchase Course 3 – New Developments Course Course 4 – Buyer Agency Agreements Elective A – Risk Reduction Elective B – 1031 Exchanges and Exchange Opportunities Elective C – Condominiums D – Landlord/Tenant and Property Management Elective E – Financing Elective F – Broker Supervision Elective

2011-12 Electives: A – Short Sales & Foreclosures Elective B – Environmental Matters Elective C – Other Approved Forms Elective D – Financing Elective Pre-License Available online!

QuickStart

Date April 23-26, 2012

WRA Annual Convention

Course Broker Pre-license

Appleton, WI Location

Location Madison

Price (262) 637-4426 (920) 553-6227 (262) 637-4426 (218) 728-5676 (800) 279-1972 $27/m; $40 nm (262) 375-4730 or 262 365-3727 (262) 637-4426 (262) 942-0592 (715) 356-3400 (920) 553-6227 (262) 942-0592 (920) 553-6227 (800) 279-1972 $27/m; $35nm (715) 735-0547 (262) 375 4730 or 262 365-3727 (218) 728-5676 (262) 723-6851 (800) 279-1972 $27/m; $35 nm (262) 942-0592 (262) 723-6851 (920) 553-6227 (218) 728-5676 (800) 279-1972 $27/m; $40 n (715) 356-3400 (920) 553-6227 (262) 723-6851 (800) 279-1972 $27/m; $35 nm (920) 553-6227 (920) 553-6227 (715) 356-3400 (920) 457-7908 (800) 279-1972 $27/m; $35 nm (715) 835-0923 (920) 553-6227 (715) 835-0923 (920) 743-9651 (800) 279-1972 $27/m; $35 nm (262) 942-0592

Member price Non-Member price $260*

$280*

* Plus books

sales training program

www.wra.org/QuickStartOnDemand

wisconsin real estate magazine

april 2012

techhottips

View more posts at www.techhottips.com

Technology Tips & Tools for the Real Estate Professional

Tech Hottips writers are Amy Chorew, a nationally acclaimed real estate technology trainer and Kim Wood, a Philadelphia-area REALTOR® involved in both real estate and technology coaching.

Time Tips for Social Media “I just don’t have time to spend on social media and my online presence.” Have you said that before? Your clients and potential clients are online and they are using social media to reach out to agents daily. Wouldn’t you like it to be you? Use these tips for scheduling your time to be more productive online: •

Choose the Networks: There are many options you have for networking online. The major networks you should take a look at and strongly consider are the following: Website, blog, Google Profile, Trulia profile, LinkedIn, Facebook personal profile and Facebook business page. Other networks you should also consider are Twitter, YouTube, Google+, Flickr, Yelp and Foursquare.

•

Profile Checkup (Quarterly): Your profiles should all include a current photo, current bio highlighting personal and business interests, and links to your website or blog.

•

Website Checkup (3 Times/Week): Post customized content and make sure your information is updated.

•

LinkedIn Checkup (Monthly): Make new connections, update your status and participate in some focused group conversation that is local and in your area.

•

Facebook – Personal Checkup (Daily): Update your status, like or comment on a few local posts, and make new friends.

•

Facebook – Business Checkup (Daily): Update your status – and use your own website or blog when you link, become your business page identity and comment or like on local companies and organizations, and post photos and information on the community you serve.

•

Optional Networks Checkup: Twitter and Google+ need to be updated, and you should engage in conversation daily. Flickr needs uploaded photos of the community as well as your comments on local pictures and participation in local groups weekly. Post YouTube videos of your community weekly. Participate in Yelp Reviews and FourSquare check-ins as you can.

And note that we did not mention playing games or engaging in any chat programs!

Canned Replies in Gmal

Is Your Website Mobile? Just this week, how many times have you looked up an address, downloaded an app or visited a website on your smartphone? Needless to say, mobile marketing is big! We’re on the threshold of a new era in mobile device usage that will change how we advertise. By 2014, it’s estimated that mobile internet searches and use will surpass desktop.

If you are a Gmail user, hopefully you already scoured the Gmail labs to find many helpful applications to add to your e-mail account. You can find the labs under the “Lab” tab in your Gmail settings.

It is critical that real estate brokerages have mobile sites, but not just an optimized or mobile-compliant site. Because consumers both demand and expect a mobile site, Google created a way in which you see how your website looks through a mobile platform. Visit www.howtogomo.com, and there you’ll learn: •

Why mobile sites matter.

•

See how your current site looks in mobile.

•

Find resources to help build your site.

wisconsin real estate magazine

For example, I had a canned response set up for lead inquiries from my website. The canned response I used was short and sweet – at least I think so – that resulted in more replies than others I tried. “Thank you for checking out the homes for sale on my website. I am available to answer any further questions or set up an appointment to see the property in person, just let me know.”

Also check out Google mobile sites. This is an easy-to-build landing page option for those companies without mobile sites. This is a good option to use in the interim.

One of my favorite labs is Canned Responses. You can enable the application within the labs and it will automatically appear in your “General” tab to customize canned responses to save you time. Canned messages are used when you find yourself typing the same e-mail over and over again.

april 2012

Of course all I was really looking for was a response, then I could interview further to qualify the lead. There are many different replies to e-mail in which you may consider using a canned response, and you can even insert one into a message that you want to add more information in further.

www.wra.org/wrem

product showcase

How to Reach the Next Generation:

Generation Y

Resources for Education and Reference By Nichole Mickelson

Commissions at Risk: A Real Estate Professional’s Guide to Beating Online Competition

ever before has the real estate market held clientele of so many different generations. Connecting with the youngest homebuyers – those of Generation Y – requires understanding what type of consumers they are.

Authored by a Gen Y member!

The Generation Y category generally includes those born between the late 1970s through the early 90s. Because it spans a large time frame, there are many other names for this generation: Millennials, Eighties Babies and the Peter Pan Generation, just to name a few. While these will vary person-to-person, Gen Y is generally characterized by an increased use and familiarity with communication, media and technology as well as a perceived desire for delaying some rites of passage into adulthood, such as living with their parents for longer periods of time.

Finally, the WRA’s Tech Hottips are also an excellent resource for information on the latest technology trends. You can find the Tech Hottips and other technology information at www.wra.org/News/WREM/Technology.

When working with a Gen Y client, have your fingers ready to do the talking. Gen Y has grown up knowing the mobile generation. Their preferred methods of contact are text messaging, social media and e-mail. Most likely they own a smartphone and laptop or tablet so they are reachable and able to stay in contact 24/7. A generation of instant gratification, they will look for consistent contact regarding the status of their home sale or purchase. And being constantly “plugged in” you will need full working knowledge of the avenues in which to reach them. Find information on social media websites like Facebook at www.facebook.com and LinkedIn – a professional social media site – at www.linkedin.com.

As technology continues to advance us into a mobile work environment, it’s becoming increasingly important to understand the online community of buyers and sellers. Commissions at Risk helps you redesign your business to fit the new online market. This book provides a thorough overview of the state of technology in real estate and where it is headed in the future. If you are a real estate professional who wants to survive and even thrive in the new market, read Commissions at Risk: A Real Estate Professional’s Guide to Beating Online Competition. To learn more and to order, visit www.wra.org/pub117.

zipForm®6 and Digital Ink

To further familiarize yourself with Gen Y’s preferred methods of contact, consider some of the products the WRA offers.

wisconsin real estate magazine

forms sent to them electronically. Catering to the Gen Y client and making the process as convenient for them as possible will earn you this clientele’s loyalty and respect. Utilize electronic forms programs such as zipForm®6 and Digital Ink. For more information, visit www.wra.org/zipforms or www.zipforms.com. Also a WRA member benefit!

Gen Y buyers will want property information such as listings and documents such as

april 2012

But don’t forget about Baby Boomers and Gen X members! Most of Gen Y has close relationships with their parents, keeping in almost daily contact as they seek reassurance and affirmation. This close relationship also makes Baby Boomers and Generation X-ers your clients as well, as these are the parents of Gen Y. Many in Generation Y are waiting to do things like move out of their parent’s houses or get married because they want to do it once and do it right. By the time they are looking to purchase a home, they will be committed buyers who know what they want and are willing to wait to find it.

Nichole Mickelson is the Business Services Assistant for the WRA and oversees numerous WRA products.

Dream Big The Bigger, The Better Every dream is different. Some are big, some are small. But for most REaltORS®, they involve a dream of independence. at Coldwell Banker, we welcome any size dream. It’s up to you.

Every Dream Deserves a Chance DreamBlueBlog.com • ColdwellBankerOnline.com

Realtor® sales tip

When it Comes to Housing, Always Play Fair! By marcus wally

he National Association of REALTORS® (NAR) has again declared April as National Fair Housing month. What that means to us is that we are reminded to stay vigilant of our duties and responsibilities to all who seek our guidance and advice. April 2012 marks the 44th anniversary of the 1968 landmark Fair Housing Act. Each year, REALTORS® recognize the significance of this event and reconfirm our commitment to upholding Fair Housing Law as well as our commitment to offering equal professional services to all in the search for real property.

•

Sex

•

Handicap (disability)

•

Familial status

•

National origin

Discrimination for much too long has been a part of our lives. As representatives of both buyers and sellers, REALTORS® hold the key to promoting inclusive, diverse communities. We must be committed to fighting discrimination and promoting equality. NAR and its members embrace the country’s racial and ethnic diversity and strive to make the benefits of homeownership available to all. Information is online on the U.S. Department of Housing and Urban Renewal’s website, www.hud. gov. The federal government established a national policy of fair housing. The law makes it illegal for any person or business to discriminate in the sale, lease, advertising or financing of housing – or making housing otherwise unavailable – because of: •

Race

•

Color

•

Religion

These are known as the seven federally protected classes. In addition, some state and local laws also prohibit discrimination based on other factors such as: •

Age

•

Source of income

•

Sexual orientation

•

Military affiliation

It is critical that we as professionals know what our local, state and federal laws cover in order to help protect all individuals. The Department of Justice offers the Fair Housing Act (45 U.S.C. 3601) online at www.justice.gov/crt/about/hce/housing_ coverage.php for your review. As professionals, enforcement of these protective guidelines is our duty no matter what type of financial incentive we may be offered. Never allow anyone or any dollar incentive to sway you from these laws. Our customers and clients are counting on us to protect them from unscrupulous people who may try to discriminate for one reason or another. A basic right of all Americans is to pursue the American dream of homeownership. REALTORS® work to build strong communities and create an

wisconsin real estate magazine

april 2012

environment where everyone, regardless of race, color, religion, gender, familial status, disability or national origin, can choose where they want to live. NAR’s video, “Trying Too Hard to Help: Fair Housing and Unintentional Discrimination,” serves as a great reminder that discrimination can also happen in reverse. Sometimes our good intentions can lead us into an area where we discriminate against someone when our intentions were to treat all fairly, such as advertising in a Korean-only newspaper because we assume that a Korean family would love to attend a Korean church. And suddenly, we find that we are discriminating – steering – which is an illegal activity. The video can be viewed at www.realtor.org/ government_affairs/diversity/fairhousing. A REALTOR® pledges to conduct business in keeping with the spirit and letter of the Code of Ethics. Article 10 imposes obligations on REALTORS® and is also a firm statement of support for equal opportunity in housing. This is a good thing! A REALTOR®’s pledge: “together ...we cannot walk alone.” Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at (904) 669-1081 or by e-mail at marcus@ newworldrealty.com.

legislative

The Closing Bell: Legislature Ends Historic Legislative Session After Passing Many of the WRA’s Legislative Priorities

n March 15, 2012, the Wisconsin Legislature concluded the 201112 legislative session, which will be regarded as “historic” for many reasons. Although most people will remember this legislative session for reasons unrelated to the real estate industry, this legislative session also will be remembered for the many changes benefitting homeowners, property owners and the real estate industry. While many of these changes have been highlighted over the last 12 months in prior Wisconsin Real Estate Magazine articles, this article summarizes many of the WRA’s top legislative victories passed by the legislature within the last few weeks of session.

Presumptive Approval/Deadlines for DNR Permits (SB 326): Creates greater certainty for property owners applying for permits near navigable waterways by (a) shortening the current permitting timelines by over 30 days; (b) giving the DNR one opportunity to request additional information from permit applicants; (c) deeming permits to be improved if the DNR does not make a decision within statutory timelines; (d) requiring the DNR to provide,

wisconsin real estate magazine

number of clarifications to Wisconsin’s

Ch. 30 Regulatory Reform (SB 326): Makes significant changes to Chapter 30 for the regulation of activities near navigable waterways, including (a) elimination of the pier registration requirement; (b) guaranteeing that all riparian owners have a right to place a pier; (c) grandfathering all existing piers that are not subject to DNR enforcement actions; (d) allowing new pier loading platforms to be up to 200 square feet, and (e) allowing unlimited maintenance and repair for nonconforming wet boathouses.

either rescind the offer or request missing

Nonconforming Structures and Substandard Lots (SB 472): Protects the ability of property owners to perform unlimited maintenance and repair on nonconforming homes and buildings; prohibits counties from enacting regulations that are more restrictive than the regulations found in NR 115 with respect to (a) expanding nonconforming structures and (b) building on substandard lots.

Wetland Regulation Reform (SB 368): Allows for greater utilization of wetland mitigation program by, among other things: (a) requiring mitigation to be considered at the beginning of the permit process so that the permit decision can be based on the “net environmental benefit” after mitigation; and (b) limiting “practicable alternatives” analysis to substantially similar activities on the same or adjacent site, which would exclude “not doing the project” or “doing a similar project on a different site.”

in writing, reasons for denying permits; and (e) shifting the burden of proof in contested case hearings to the person challenging the DNR decision.

condominium law, including that (a) a buyer has five days after the seller delivers condominium

disclosure

documents

documents; (b) the condominium addendum materials are required only if the real estate condition report (RECR) is required; and (c) the Executive Summary is not required for the RECR if a small condominium is using abbreviated disclosure documents. Variances (expiration date) (SB 300): Establishes that variances do not expire unless an expiration date has been established by local ordinance or by the board of zoning appeals/adjustment at the time the variance was granted. Landlord/Tenant (SB 466): Better protects the rights of landlords by (a) declaring that all provisions in a lease agreement are severable, except for a number of specified illegal provisions; (b) allowing landlords to

Development Moratoria Framework (SB 504): Creates a regulatory framework for local development moratoria by establishing (a) who can enact moratoria, such as cities, villages and towns – not counties; (b) the purposes for which moratoria can be enacted (comprehensive planning, health, safety, and overburdening of public facilities); (c) the procedure that must be followed (public notice, hearing, and adopted by ordinance); and (d) allowable duration with a maximum of 18 months.

immediately dispose of tenants’ personal

Condominium Disclosure/Condition Report Documents (SB 539): Makes a

Tom Larson is Vice President of Legal and Public

april 2012

property that is left in the unit upon expiration of the lease; (c) requiring landlords to provide tenants with check-in sheets prior to beginning of lease term; and (d) allowing landlords to withhold unpaid rent and utility bills from security deposits. For more information, please contact Tom Larson (tlarson@wra.org) at (608) 240-8254.

Affairs for the WRA.

www.wra.org/wrem

By tom Larson

wisconsin real estate magazine

april 2012

Kathleen Falk Lacks REALTOR®-Friendly Record

By joe murray

ne of Gov. Scott Walker’s Democratic opponents in the recall election is former Dane County Executive Kathleen Falk. REALTORS® may remember Falk from her 2006 campaign for Wisconsin Attorney General, where she narrowly lost to current GOP Attorney General J.B. Van Hollen. The WRA board of directors and REALTORS® Political Action Committee (RPAC) Trustees endorsed Van Hollen in that 2006 race because Falk, as Dane County Executive for 14 years and a Wisconsin Department of Justice (DOJ) “Public Intervenor” before that, made restrictive land use polices her signature issue. Falk began her career as an attorney and co-director of Wisconsin’s Environmental Decade before her 14 years as Wisconsin’s Public Intervenor, a taxpayer funded position advocating for environmental causes.

Why didn’t the WRA Board of Directors endorse Kathleen Falk in 2006? Homeowners and REALTORS® believe that protecting the environment is critically important to Wisconsin’s quality of life. However, we also know that environmental regulations must be balanced with the rights of property owners, affordable housing and good-paying jobs. Throughout her career, Kathleen Falk has been an environmental activist who has worked to advance her beliefs that land use and environmental protection should be a priority over private property rights and economic development. Here are several examples of her stand on issues: •

•

Opposed expanding a major highway near Madison – Highway 12 – even though it would be safer for motorists because she believed it would enable further development away from Madison.

•

Opposed the creation of Madison’s South Beltline, which has been instrumental to the economic success of Madison.

•

Opposed legislation (Assembly Bill 299) that would allow cities and villages to apply their own regulations to newly annexed land in shoreland areas.

•

Opposed modernization of the state’s septic system code (Comm, 83), even though it better protected our groundwater, because she believed that it would allow for greater real estate and commercial development in rural areas.

Supported a decision by the U.S. Supreme Court (Kelo v. City of New London) that allows a city to condemn someone’s home and sell it to a third party for development.

•

Supported the creation of urban growth boundaries to prohibit development in rural areas.

•

Supported a decision by the Wisconsin Supreme Court (Zealy v. City of Waukesha) that makes it almost impossible for property owners to win “takings” cases against the government.

•

Supports reinstating the Office of Public Intervenor, which was eliminated by Gov. Tommy Thompson because he believed it was illogical for the state to hire and pay for an attorney, a public intervenor, whose sole responsibility was to sue the state to ensure compliance with state laws.

When you compare Falk’s record on real estate issues to Gov. Walker’s (see the February issue of the Wisconsin Real Estate Magazine), the contrast is clear. Gov. Walker has been a strong supporter of REALTOR® issues as a lawmaker, county executive and now as governor. Kathleen Falk, on the other hand, starts with the philosophy that emphasizes ways to “control” housing development, transportation and land use. We believe private property rights and economic development deserve equal consideration. Joe Murray is Director of Political and Governmental Affairs for the WRA.

www.wra.org/wrem

WHAT MAKES A CENTURY 21 AGENT? IT’S lIKE THAT SToRY AboUT THE ENGINE THAT CoUld. ExCEpT THESE ENGINES CAN. ANd THEY do. WHICH IS ExACTlY THE ATTITUdE IT TAKES To MAKE THINGS HAppEN. THEY KNoW THEY CAN. CENTURY 21 AGENTS. SMARTER. boldER. FASTER. ®

LEARN ABOUT FRANCHISING OPPORTUNITIES AT C21.COM © 2011 CENTURY 21 REAL ESTATE LLC. ALL RIGHTS RESERVED. CENTURY 21® IS A REGISTERED TRADEMARK OWNED BY CENTURY 21 REAL ESTATE LLC. AN EQUAL OPPORTUNITY COMPANY. EQUAL HOUSING OPPORTUNITY. EACH OFFICE IS INDEPENDENTLY OWNED AND OPERATED.

This one-day, one-of-a-kind event will bring home ownership professionals together from around the state for an unrivaled information exchange and networking opportunity. The conference will feature multiple keynote speakers and four informational tracks: n Underwriting and credit risk management n Business development for home ownership professionals n Regulatory compliance and quality control

n All about WHEDA

For more information or to register, go to www.wheda.com.

MAY 3, 2012 KALAHARI, WISCONSIN DELLS

Sponsors: