July 2012 - Wisconsin Real Estate Magazine by Lauren Bizorik

BACK TO BUSINESS

SAFETY AT SHOWINGS

It’s summer, and it’s selling season.

How prepared are you?

MAGAZINE

July 2012 $5.00

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table of contents

july 2012

vol.

28, no. 10

18 6 features 6 14

2012 WRA Annual Convention

From networking to CE to partying, whether you’re a novice or a veteran, you’ll find something at the convention just for you!

2 5

Preparing Your Seller to Prepare the Home to be Prepared for Showings — Part 2

To Disclose or to Not Disclose, Is that the Question? The revised Administrative Code rules pertaining to ethical practices went into effect July 1, with a focus on disclosure. Are you ready?

Recall Fever Ends

A recap of last month’s rare and historic gubernatorial recall election.

wisconsin real estate magazine

articles

The final installment of an article series about REALTORS® working with sellers to prepare homes for showing. This installment highlights safety.

july 2012

Getting Back to Business Market fundamentals look good and sales are strong. Can governmental regulations change this?

Product Showcase — Mission Possible: Achieving Office Organization

Can your files be both mobile and organized? Of course! This month’s Product Showcase explains how.

Best of the Legal Hotline: Landlord and Tenant Questions

26 28

With a focus on the Wis. Stat. 704 changes, this hotline addresses security deposit withholding, tenants occupying for-sale property and much more.

New Changes to Wisconsin Wetlands Regulations A look at the new regulatory reform measures designed to modify Wisconsin’s wetland regulations.

REALTOR® Sales Tip: Hefty Deposits A reminder about the importance of collecting deposits.

News

inside the wra

with mike theo

Top News Stories in and Around the Industry

Getting Back to Business United Way Honors the Stark Family for Service to Community United Way of Dane County

Wisconsin Receives Millions to Ease Foreclosure Crisis

substantially increase funding for rental assistance, particularly help for working families.

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

expected to grow to 970,000 in 2013. In fact, Dr. his is a particularly important time of the year. Not because we’re Free FHA Toolkit United Waythe pandemonium of Dane County Therecall state elections of Wisconsin nearly $39 thatNAR Yun speculated with Releases a growing population, in between of the June andis due to receive Wisconsin REALTORS® Association if(10/30/08) recognized the Stark Family with million in federal funds to stabilize neighborhoods we could see a housing shortage in 2014-2015 the tumult of the November general elections, but because we’re the 2008 Tocqueville Society Award and stave off a spate of abandoned homes. According builders don’t increase now.are eager to help you meet the in the selling season of a recovering real estate market — and NARproduction and the WRA for outstanding service to the Dane to HUD and Gov. Jim Doyle, the funds are separate things are looking good. current challenges of the troubled economy. We County community and United Way. The Tocqueville from approximately $9.2 million the government Issues of concern:is Society Award celebrates and acknowledges people awarding the city of Milwaukee, where the foreclosure know that you need resources that can help you A detailed review of that market was the subject of a superb conference at or families, such as the Starks, who have made a • is A awarding semi-dysfunctional mortgage market, withneed tightthem credit rate is currently 9.9was percent. HUD the the UW-Madison in early June, co-sponsored by the WRA. The occasion close transactions, and you at little or no major impact on the quality of life in Dane County via its Neighborhood Stabilization holdingProgram, back a stronger recovery. Some speculated that the annual Wisconsin real estate and economic outlookfunds conference organized cost. NAR has just released an all-new FHA Toolkit through their exceptional service and commitment under which almost $4 billion is being allocated housing salesto would be 15 to 20 percent higher right now if bythe thecommunity. James A. Graaskamp Center for Real Estate at the UW-Madison School online for FREE to help you get clients the to local and state governments for the redevelopment Bill Malkasian only Fannie, Freddie and FHA used “normal” credit scoresfinancing to of Business. This year’s conference was titled “Buildingofaabandoned Housing Policy that and foreclosed houses.approve loans rather they need in higher a credit-strapped environment. It is WRA President than the scores they’re currently Works” — whichAuthority is a particularly timely topic. With major federal budget City Housing Receives one of the most comprehensive toolkits NAR has using. battles on the horizon and a bruising presidential campaign that’s well under

100-Unit Grant

Sites: Not Just for Personal

produced, and it’s available to all REALTORS to fixConnections the nation’s ongoing Anymore• Mortgage rates are ever expected to rise gradually to an average of 4.9 right now by visiting the link below. They also have Minneapolis-St. Business Journal (09/29/08) housing will be difficultauthority at best. The conference was thus Paul designed The city challenges of Milwaukee’s housing is due percentGrayson, in 2013, which is still historically favorable. The pressure Katharine to receive consider$6.7 questions what current policies launched a new page called inflation “NAR Helps Youforce Navigate to million like in federal Hope VI moneyare working and which ones of rising rents and an increase in consumer could the aren’t? Hownew canhousing we best address large inventories of Paul, vacant, foreclosed to build 100 units. The 100 units will St. Minn.-based REALTOR® Teresa Boardman Current Economy” youwhich can find dozens of Federal Reserve to the raise interest rates inwhere 2014, isn’t all bad properties? What for the GSEs (Government Sponsored be constructed in areforms 2.5-mileare arealikely and will include says Flickr, Facebook and other social networking since that could shiftgreat refinancing to new purchase productsloans and resources, like the loans. FHA Toolkit, 29 public housing and and affordable units; role should sites make it easy to meet people who might Enterprises like Fannie Freddie)rental and what lenders, capital for free or at a steep discount. Visit www.Realtor. nine affordable housing units servicers, for income-eligible eventually clients. While professionals • many There could be significant economic fallout if no new federal budget markets, regulators, insurers, government entities andbecome consumers these great programs families; are using these sites to make business contactscome org/NARHelpsYou compromises out of Washingtonforbylinks the to end of the year, causing play? and 62 moderately priced, open-market condominiums. HUD Secretary Steven C. Preston and companies use them to conduct background and products. automatic deep cuts to military and domestic spending as well as comments, “Milwaukee’s housing authority has Economist checks orLawrence recruit new simply want Presenters at the conference included NAR’s Chief Yun;workers, many automatic tax increases. Moreover, other federal policy uncertainties demonstrated it has the leadership to lead andhome to connect withMatthew people who have similar interests. Karl “Chip” Case, co-founder of the Case-Shiller price indices; Home Loans Going Strong, Albeit a loom over the real estate market, including: revitalize and transform According to Boardman, Feldman ofneighborhoods the Federal Home Loan Bank lives. of Chicago; and Curt Culver of “The hard sell is dead. It Bit Tighter, in Area Cities Milwaukee and need to presentations doesn’t workcame door-to-door, work reforms on • GSE that could fundamentally change secondary MGIC,like to name a few.change One ofand thegrow more provocative from and it doesn’t Wisconsin State Journal (10/17/08) Balousek, Marv revitalize housing to make sure many aren’t priced social networks.” On Flickr, Boardman connected mortgage markets. Graaskamp Center Academic Director Professor Morris Davis who used the out.” Milwaukee is one of a half-dozen housing with a fellow photographer who eventually used her Despite the ongoing national credit crisis, property Great Depression to forecast the recovery from the Great Recession — which authorities nationwide to receive new Hope VI services to purchase a home. • The risk of eliminating or seriously restricting the mortgage turned out to be surprisingly upbeat! professionals say mortgage money remains available grants. interest tax deduction. throughout southern Wisconsin to home buyers Foreclosures Push Rents Higher, I found some familiar themes in the presentations of these renowned Housing Study Delay Frustrates • Potential for requiring large downRon payments of possibly Squeezing Low Income Families with solid credit. Steinhofer, manager20of economic thinkers and housing market makers, including: Advocates Minnesota Public Radio (MN) (09/21/08) Olson,percent Dan for all mortgages. Marshall & Ilsley Bank’s regional home lending Milwaukee Journal Sentinel (10/07/08) Williams, Scott Good news: In Minnesota’s Twin Cities, a wave of home group, states, “There’s money for home • Discussions regarding a capital gainsplenty tax on of home sales. Two years after promising the Milwaukee metro foreclosures has pushed more people into the rental loans out there. It is slightly more difficult to qualify • Demand forhousing housingstudy is on inthethree rise decades, due to historically high affordability, area’s first major apartment sector. The resultThe is months an intensifying of April through August typically account for 51.5 percent historically low interest rates, ongoing job creation, solidonstock marketand St. Paul’s than two or three years ago, but if you have a good the Southeastern Wisconsin Regional Planning demand Minneapolis rental housing of annual housing sales volume in Wisconsin. With Wisconsin home recovery, rising rents, pools of qualified renters and pentCommission (SEWRPC) is still increasing struggling to get the stock, so much so that the vacancy rate is very low credit score, a good job and a down payment, money up for ten straight months and prices once again on the effort up launched. hopeyears the of study demandProponents due to several low will household —the or rise. as This,sales andformations rents are on in turn, means lowis available.” adds that banks still are rise, albeit slightly, we seem poised forSteinhofer a strong market in these serve as catalyst for improving affordable families face higher monthly rents Dr.aYun of NAR puts it, “more younghousing people nowincome leavingworking their parents’ making loans via such programs as summer months. As our world-class presenters noted at the Fannie Mae opportunities throughout the city’s suburbs. But even though their income hovers at unchanging basements.” andmarket Freddiefundamentals Mac. Furthermore, credit standards UW housing conference, the are good. commissioners have yet to assemble an advisory levels. Since 2005, the Twin Cities apartment committee to oversee the researchchoosing or set a specific we must ensure government policies, at were the six months ago, • Investors are increasingly real estate, vacancy due to low and from 7Now rate prices has dipped percent to closer to thatremain about the same both as they timetable forrents. conducting the survey. Phil Evenson, federal andthat state level, don’t mess that it up. 4 percent. Average monthly rents over same rising meaning qualified home buyers can get loans Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia way, attempting to advance bipartisan solutions

the commission’s executive director, said other issues time span are up more than $25, rising to more keep in the way. The confidence delays have and frustrated • getting Increasing consumer the returning perception than $850. Thethat St. real Paul-based Wilder Foundation housing advocates the most. asset. Bethany Sanchez, estate is an appreciating recently reviewed income data for several Twin Cities Mike vice president of the Metropolitan Milwaukee Fair counties. The organization’s research found that the • Decline in housing both time listed properties and seriously Housing Council, laments, inventories, “It’s been a long number of people in those markets paying too much coming.” The Pewaukee-based commission delinquent mortgages, known as shadowhas inventory. for their rental housing will double from around not conducted a comprehensive review of housing 70,000 currently to a whopping 140,000 by 2010. • Inflation is under percentsolution in patterns since the 1970s. control, at least for now, predicted Some at say2.4 a partial would be for the U.S.

2012 and 2.8 percent in 2013.

•

government to reverse course on housing policy and

if they have the proper income verification. On the downside, banks have been less willing to make loans with higher loan-to-value ratios. In addition, conventional financing without a down payment has indeed disappeared. However, 100 percent financing is still available with Veterans Administration and Rural Development home loans.

Housing starts, while below long-term average of 1.5 million, are expected to rise to 770,000 in 2012, up from 610,000 in 2011, and

wisconsin real estate magazine

july 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 Renny Diedrich, Chairman-Elect rdiedrich@coldwellhomes.com

Would You Like to Serve on a WRA Committee?

Steve Lane, Treasurer lanes@firstweber.com

2012-2013 positions available Want to be involved in your association and make a difference for the future of the WRA, the real estate industry in Wisconsin, and your fellow REALTORS®? Participating in a WRA committee can do just that! If you are interested in serving on a WRA committee in 2012-2013, please register your name at www.wra.org/CommitteeApplication. The application will be available online between July 15 and August 15. The deadline is August 15, 2012.

Michael Theo, cae, President & CEO mtheo@wra.org Editorial Staff:

Make sure you indicate your committee preference when applying. While we will attempt to honor all preferences, we cannot guarantee them due to space limitations.

Michael Theo Publisher

Committees: 2013 State Convention The Convention Committee is responsible for the planning of the annual convention.

Robert Uhrina Advertising

Lauren Bizorik

Cultural Diversity in Housing Advises and counsels member boards on the fair housing partnership agreement, affirmative marketing and office management procedures. Monitors and evaluates legislative, legal and regulatory trends with respect to equal opportunity in housing, and interprets the impact of such trends on the real estate industry.

Editor

Joe Leschisin Senior Designer 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.

Legal Action Selects cases and administrative proceedings of statewide interest and concern to the real estate industry for WRA participation, research and other assistance.

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.

Professional Standards Work Group Reviews professional standards policies and procedures for the WRA and recommends revisions as necessary to the WRA board of directors.

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.

Public Policy Reviews legislative proposals and issues that affect the real estate industry and recommends WRA positions. Also studies and proposes recommendations on regulations promulgated by various administrative departments of state government, such as the Departments of Natural Resources, Safety and Professional Services and the Public Service Commission. Recognition Committee Selects recipients of the Distinguished Service Award. Wisconsin REALTORS® Foundation Administers the various GRI scholarships and the REALTORS® Children’s Scholarship.

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 New! – Xceligent Inc. Technology Dell DocuSign® Hewlett Packard

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

Professional Standards Hearing Panel Resolves allegations of ethical violations and controversies between REALTORS® as described in the WRA bylaws.

july 2012

Lenovo 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 REALTORS® Federal Credit Union Educational Tools ABR® SRES® e-PRO® SFR GREEN Designation BPOR

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

As of 6/28/2012. Subject to change.

news monthly wisconsin housing report

Housing Market Rebound Continues in May

View all housing statistics at www.wra.org/housingstatistics

By David E. Clark, Economist, C3 Statistical Solutions

> WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - MAY 2012

% Change

YTD-2012

YTD-2011

% Change

-10.7% 18.9% 1.5%

53,058 22,329 $126,000

54,135 18,571 $127,000

-2.0% 20.2% -0.8%

MAY-2012

MAY-2011

New Listings Closed Sales Median Sales Price

11,617 5,978 $138,000

13,006 5,026 $136,000

Region

Median Price MAY-2012 MAY-2011 % Change

Existing Home Sales MAY-2012 MAY-2011

% Change

Southeast South Central West Northeast Central North

$147,250 $160,000 $130,000 $119,900 $108,000 $122,500

2,154 1,232 631 1,083 369 505

21.0% 18.5% 14.5% 21.4% 31.8% 8.1%

$143,900 $160,000 $129,900 $125,000 $112,650 $125,000

isconsin home sales recorded strong growth again in May, continuing the trend that began last summer. Sales of existing homes were up 18.9 percent in May 2012 compared to May 2011, according to the most recent monthly report by the Wisconsin REALTORS® Association (WRA). In addition, median home prices in the state rose 1.5 percent to $138,000 relative to the same month last year.

wisconsin real estate magazine

2.3% 0% 0.1% -4.1% -4.1% -2.0%

1,780 1,040 551 892 280 467

An improving job market is helping the housing sector in Wisconsin. Between January and April, the last month for which employment estimates are available, Wisconsin added just over 19,000 jobs on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. This employment growth actually outpaces the growth in the labor force, which increased by more than 14,000 over the period. “We’ve always maintained that job growth is the key to sustained growth in the housing market, and the steady reduction in the state unemployment rate is one indication of an improving job market,” said WRA President and CEO, Michael Theo. Wisconsin’s unemployment rate stood at 6.7 percent in April, which is well below the national rate of 8.1 percent that same month. “With mortgage rates at 3.8 percent on a 30-year fixed-rate mortgage and an improving labor market, the ongoing growth of home sales is not surprising,” said Theo.

upward movement in statewide median prices, although the regional picture is more mixed with three regions either up slightly or flat in May, which were the Southeast, West and South Central regions; and other regions down by modest margins, which were the North, Central and Northeast regions. Even though statewide prices have increased, the reduction in mortgage rates has combined with slight improvements in the projected statewide median family income to increase affordability compared to last year. The Wisconsin Housing Affordability Index, which measures the percentage of a median-priced home that a buyer with the median family income can afford, stood at 241 in May. This is up from a revised 221 in May 2011. Assuming the state job market follows the trends of the last 11 months, inventories should shrink, which will eventually increase prices. “But right now, low prices and low mortgage rates combine to make conditions ideal for those households ready to get into housing. Now is the time to contact a REALTOR® to identify the best bargains in this market,” said Theo.

The statewide median price increased 1.5 percent in May compared to May 2011. This is now the third straight month of modest

For more information, contact David E. Clark, Economist, C3 Statistical Solutions. Office phone: (414) 803-6537

with over a year’s worth of inventory on the market, but this is well below the levels of last May when there was a 17-month supply of unsold homes,” said Keefe.

“It’s good to see Wisconsin’s housing market continuing a robust rebound from the depressed levels of the recession,” said Rob Keefe, chairman of the WRA board of directors. He noted that the monthly growth rates have been in the double digits since July 2011, and that year-to-date home sales are up over 20 percent in the state. Within the state, May home sales were strongest in the Central region, up 31.8 percent, followed by the Northeast and Southeast regions, both of which grew in the neighborhood of 21 percent. Also strong was the South Central region, which was up 18.5 percent over the 12-month period, followed by the West region, which grew 14.5 percent. Finally, sales in the North region were up a solid 8.1 percent over the period. “The supply of housing remains high

Statewide

july 2012

www.wra.org/wrem

product showcase

Mission Possible:

Achieving Office Organization

any real estate agents are mobile professionals today; many work while on the go, and even cars are viewed now as “offices” too! With traveling to properties for open houses or showings and frequently traveling to meet current or prospective clients, remaining organized can be difficult but is extremely important. The WRA’s Annual Convention this year centers on helping real estate agents and brokers work successfully as mobile professionals. Here are a couple of suggested products for organizing your business so you can focus on the important parts like connecting with potential clients and building your referral base instead of organizing your files and forms.

Broker in a Box Did you just obtain your broker license under the 36-hour requirement and are now looking to start a new brokerage firm or expand an existing one? The Broker in a Box is a consolidation of valuable products

•

Selected Wisconsin Statutes and Administrative Rules

•

Real Estate Trust Accounts in Wisconsin

•

Trust Account Journal

•

Trust Account Ledger

•

Samples of WRA consumer brochures

•

zipForm® 6 user manuals

•

Real Estate Standard Forms Sample Pack

•

CD containing Legal Update issues

Do not be fooled by the name — the Broker in a Box is for salespeople too! All the items in the box can be very useful for a salesperson’s office as well, offering all the office essentials you need to get up and running. For more information and to order, visit www.wra.org/KITBRBOX. Note: most of these products are also available for individual purchase.

Dropbox Today’s successful real estate professionals have adopted the use of technology and incorporated its benefits into their daily practice. Dropbox covers some of the most important functions of technology: mobility, file sharing and information backup. Dropbox is a free, cloud computing, shareable file storage system. Founded in 2007 by two MIT students tired of e-mailing documents to themselves to work from more than one computer, Dropbox allows you to save and share documents, photos and videos with other Dropbox users and non-users. Instead of e-mailing a file, send a shareable document. View, download and upload files securely from any web browser by logging in to www.dropbox.com. All the information is saved in a “cloud,” which makes documents accessible and shareable from anyone’s computer or smartphone. 2 GB of storage is free with 50 GB for

designed to assist a broker in opening an office. Box contents include: •

Broker Desk Reference

•

Office Policy Manual

•

Wisconsin Real Estate Clause Manual

•

Wisconsin Real Estate Law Manual

wisconsin real estate magazine

july 2012

$9.99 per month and 100 GB for $19.99 per month. Dropbox is compatible with Windows, Mac, Linux, Android, iPhone, iPad and Blackberry, and has a very user-friendly Help Center on its website. What does this mean for REALTORS®? Utilize Dropbox to back up all your documents, and share with clients and colleagues files such as transactional forms, property photos and virtual tour videos. Stop by the WRA Products and Services booth at Convention to check out some of the other books, educational items and office materials the WRA has to offer!

By Nichole Mickelson, Business Services Assistant for the WRA.

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Your Mission:

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schedule highlights

Don’t miss the WRA’s showcase event of the year where REALTORS® gather together from all corners of the state for classes, networking and fun! This year, activities revolve around the “Mission Possible: Mobile Revolution” theme, and you’ll be put to the test with various missions that expand your horizons and help you gain knowledge!

sunday September 9

8:30 a.m. – 11:45 a.m. Real Estate CE – Course 1 - Listing Contracts 8:00 a.m. – 3:30 p.m. “Swing by Swing” Golf Outing (shotgun start) 11:30 a.m. – 3:00 p.m. Real Estate BarCamp 12:00 p.m. – 6:00 p.m. Convention Registration 12:30 p.m. – 3:45 p.m. Real Estate CE – Course 2 - Offer to Purchase 1:00 p.m. – 4:30 p.m. Cyber Center Open 3:00 p.m. – 6:30 p.m. Packer Party 4:00 p.m. – 6:00 p.m. Exhibits Open 8:30 p.m. – 1:00 a.m. Icebreaker Party – “Connections Carnival”

monday September 10

7:30 a.m. – 6:00 p.m. Cyber Center Open 8:00 a.m. – 5:00 p.m. Exhibits Open 8:30 a.m. – 12:00 p.m. Real Estate CE – Course 3 - New Developments 9:30 a.m. – 11:30 a.m. Opening Session – Become the Change You Wish to See in the

World with speaker Greg Bennick 11:30 a.m. – 1:00 p.m. WRA Past Chairman’s Lunch 11:30 a.m. – 4:30 p.m. WRA AE Lunch & Meeting 1:00 p.m. – 4:30 p.m. Real Estate CE – Course 4 - Business Ethics 1:00 p.m. – 4:00 p.m. Expanded Broker Track – Managing the Whirlwind 1:00 p.m. – 2:30 p.m. Workshops – Session 1 2:45 p.m. – 4:00 p.m. Workshops – Session 2 5:00 p.m. – 6:00 p.m. Women’s Council of REALTORS® Statewide Meet and Greet 7:00 p.m. – 9:00 p.m. Chairman’s Dinner 9:00 p.m. – 12:00 a.m. The After Party

tuesday September 11

7:30 a.m. – 4:00 p.m. Cyber Center Open 7:30 a.m. – 8:45 a.m. Service Club Meetings 8:00 a.m. – 2:45 p.m. Exhibits Open 8:30 a.m. – 12:00 p.m. Real Estate CE Elective A – Short Sales and Foreclosures 8:30 a.m. – 4:30 p.m. Appraisal CE – UAD: Coping with the Aftereffects (7hrs) 8:45 a.m. – 10:00 a.m. General Session: NetWORTHingTM ...The New Social Economy with speaker Sarah Michel 9:00 a.m. – 12:00 p.m. Expanded Broker Track – Recruiting in the 2.0 World 10:30 a.m. – 11:45 a.m. Workshops – Session 1 11:45 a.m. – 1:00 p.m. CRS Lunch 1:00 p.m. – 4:30 p.m. Real Estate CE – Elective D - Financing 1:15 p.m. – 4:15 p.m. Expanded Broker Track– Building a Technology Framework for Your Brokerage 1:15 p.m. – 2:30 p.m. Workshops – Session 2 2:45 p.m. – 4:00 p.m. Workshops – Session 3

wisconsin real estate magazine

july 2012

welcome & Monday, september 10 I 7:00 p.m.

Chairman’s Installation Dinner Celebrate the installation of Renny Diedrich as WRA Chairwoman, Steve Lane as WRA Chairman-elect and Dan Kruse as WRA Treasurer. Enjoy an elegant evening of festivities, complete with dinner, wine, a dessert bar and entertainment.

Estate Group, Inc., and in 2003, opened a brand-new office. She has been active in real estate on all levels, having served on several committees for her local REALTORS® Association of Northeast Wisconsin as well as WRA and NAR committees.

Renny Diedrich earned her Bachelor of Business Administration from the University of WisconsinMilwaukee, and her connection with real estate began while working for a title company in Milwaukee during college. In 2002, Renny joined Coldwell Banker The Real

Renny also enjoys volunteering and currently sits on the board of directors for the Fox Cities Marathon. Other hobbies include rollerblading and jogging as well as watching football and hockey. Renny and her husband Tim live in Appleton.

opening session Monday, september 10 I 9:30 a.m.

Become the Change You Wish to See in the World Greg Bennick, keynote speaker and incredibly funny entertainer, has spoken worldwide over the past 15 years to audiences such as Fortune 500 companies and major universities. Greg’s message explores how we can live, create and work together more effectively by exploring passion and purpose. Combining these in his keynote, “Become the Change You Wish to See in the World,” Greg will highlight how to get involved and turn passion into action by exploring our relationships and how we face challenges. Let Greg inspire you … and become the change you wish to see in the world!

Creating Ideas. Greg Bennick makes people laugh while inviting them to think. He speaks about getting involved in ideas, leadership and creativity. He follows up his words with actions: he is the founder of One Hundred For Haiti, a humanitarian relief and development organization helping to rebuild post-earthquake Haiti. His work has been seen on five continents and in dozens of countries for tens of thousands of people.

general session Tuesday, September 11 I 8:45 A.M.

NetWORTHing™ ... The New Social Economy Sarah Michel, a certified Myers-Briggs personality style expert and Certified Speaking Professional, will share her lessons that will shift your perspective of networking in her fun and interactive NetWORTHing™ keynote! You’ll discover how to become a valuable hub in your network wheel to grow your social capital and net worth. Join Sarah as she shares her strategies for improving your access and influence with your network so you can do your job faster, better and easier. You’ll learn about: • The importance of NetWORTHing™ vs. transactional networking and how to communicate your value to grow your access and influence with your network.

•

How to find a sponsor — not a mentor — to help you leverage your relationships to grow your career. The NetWORTHing™ secrets of successful 21st century leaders and action steps for becoming one of them. The importance of a personal network and how to develop one before you really need it.

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•

Participate in the $500 drawing at the general session.

www.wra.org/wrem

swing by swing sunday, september 9 I 8:00 a.m.

golf outing

Join us for the WRA’s 2012 Annual Convention Golf Scramble at Butte des Morts Country Club in Appleton! Known for its distinctive design and immaculately maintained greens, this 18-hole championship golf course provides a memorable links experience. All levels of golfers will be tested with narrow fairways and large, sloping greens spread across 142 scenic acres. The golf outing fee includes golf cart, prizes, refreshments and new for this year, a box lunch. Men must wear a shirt with collar and women must wear golf attire. Butte des Morts is a soft spike facility.

wisconsin sunday, september 9 I 11:30 a.m.

real estate barcamp

WISCONSIN

RE BarCamp will return once again to the WRA’s Annual Convention. Don’t miss real estate/tech gurus Amy Chorew and Bill Lublin this year! Often described as an “unconference” and an “informal gathering of like-minded people,” REALTORS® gather at RE BarCamp to discuss how technology, social media and other emerging trends can impact and benefit real estate. While many breakout session topics will be decided the day of BarCamp by the attendees, a new feature

this year also will allow BarCamp attendees to submit discussion topics in advance. With the ability to view pre-selected topics, make sure to come prepared to share! And you won’t miss the Packers game at this year’s RE BarCamp! New this year, and just for Sunday’s game, will be a tailgate party at BarCamp!

green bay sunday, september 9 I 3:00 p.m.

packer party

At the golf outing? Just finished BarCamp? Browsing exhibits? No matter where you are at Convention, you won’t miss the Packers game! Get ready for a convention-wide Packer party! Convention 2012 will have plenty of TVs, snacks and beer for you to watch the Packers game with your friends on Sunday. Cheer on the Packers to a win!

icebreaker party sunday, september 9 I 8:30 p.m.

connections carnival

4129751237495137431379561374561796741374391374913674913974317937439471397139745197195719571571975715975371 The Icebreaker Party is the perfect way to kick off Convention. With so many activities scheduled on Day 1, convention attendees won’t have a chance to interact all at once until the Icebreaker Party that evening — and that’s when the fun really starts! Dance the night away: Voted Madison’s Favorite Cover Band, The Gomers will perform the best hits to keep you on the dance floor! Dress as your favorite mobile app: Make sure to wear your Angry Bird, Tweety Bird or other app costumes! Costume Contest: All costumed partiers, dressed as a social media or mobile app, are invited to participate in wisconsin real estate magazine

july 2012

the 10:00 p.m. costume contest. Partiers will cast votes via smartphone and watch the vote tally in real time on movie screens! Prizes will be given to the Best Dressed Individual and the Best Dressed Group! Social media games: Make sure your smartphone has a full charge — you’ll need it! You’ll have your chance to partake in social media games and contests throughout the night!

expanded

two-fer

broker track

convention special

Managing the Whirlwind 1 :00 – 4:00 p.m. I Monday, September 10

Register one WRA member for one full convention pass at regular price, and register a second WRA member at a special introductory price.

In a frank discussion, Managing the Whirlwind will review technology’s impacts on marketing and communication — and how those changes have impacted the real estate industry. Companies need to understand not only that change has arrived but also how they can adapt that change to work within their already successful business models. Brokers will learn various strategies that can be adopted to accomplish a variety of ends. Instructor: Bill Lublin

The second guest must be a member of the WRA who has NEVER attended the fall convention or has NOT attended in the past five years. Limit one discounted registration per full convention pass.

Recruiting in the 2.0 World 9:00 a.m. – 12:00 p.m. I Tuesday, September 11

To receive the promotion code, you will be required to register using the Individual Registration button. At the completion of the registration process, you will receive a promotion code, which you will forward to the second WRA member.

Companies that want to stay in business need to recruit regularly, while companies that don’t recruit face personnel problems when they least expect or can recover from them. This course will discuss developing a company value package, the process of seeking appropriate recruits and different methods of

www.wra.org/conventionregistration

Building a Technology Framework for Your Brokerage (Cloud and Web Strategies for Brokers) 1:15 – 4:15 p.m. I Tuesday, September 11 Many brokers seem to adopt technology piece-by-piece without an overall strategy, often creating a mixture of programs and hardware that creates its own challenges. This course will cover the use of cloud technology to provide consistent low-cost strategies for the broker and agent. Also discussed will be Web strategies, search engine marketing and search engine optimization, mobile Web adaptation, levels of technology support needed for the company and its agents, and how education may need to be acquired to assist in implementation of the company’s plans. Instructor: Bill Lublin

reserve

complete 18 hours of

The WRA has reserved a block of rooms for convention attendees at $109 – Standard Room.

Don’t wait to complete your CE. You’ll feel great to check your requirements off your to-do list! At Convention, you will be able to complete the required 18 hours at the convention. Four of the six courses are included in the full convention pass. Seating is limited so register early to secure your seat.

Due to the Packers game on September 9, 2012, be sure to reserve your room before the release dates!

Course 1 – Listing Contracts

your room

continuing education

8:30 a.m. – 11:45 a.m. I Sunday, September 9 Instructor: Cori Lamont

Call the Radisson Paper Valley Hotel at (920) 733-8000 or visit www.wra.org/ ConventionHotel to reserve your room.

Course 2 – Offer to Purchase

Room rate expires August 10, 2012.

12:30 – 3:45 p.m. I Sunday, September 9 Instructor: Cori Lamont

did

Course 3 – New Developments

you know?

8:30 a.m. – 12:00 p.m. I Monday, September 10 Instructor: Michael Tobin

The following are included in the convention registration fee: •

• • • •

approaching them, and how to use technology to make the process more efficient. Brokers will learn about services to provide business intelligence, how to use social media resources for monitoring potential recruits, and how to use technology to identify appropriate recruits. Instructor: Bill Lublin

Real Estate CE – Four of six courses included in Full Convention Pass. MUST register in advance – first come, first served! Icebreaker Party “Connections Carnival” Access to the After Party following the Chairman’s Dinner RE BarCamp Packer Party wisconsin real estate magazine

Course 4 – Business Ethics (fulfills NAR QET requirements) 1:00 p.m. – 4:30 p.m. I Monday, September 10 Instructor: Michael Tobin Elective A – Short Sales and Foreclosures 8:30 a.m. – 12:00 p.m. I Tuesday, September 11 Instructor: Jonathan Sayas Elective D – Financing 1:00 p.m. – 4:30 p.m. I Tuesday, September 11 Instructor: Jonathan Sayas

seven-Hour

appraisal continuing education UAD: Coping with the Aftereffects – (7 hrs.) 8:30 a.m. - 4:30 p.m. - Tuesday, September 11 Instructor: Dawn Molitor-Gennrich

july 2012

www.wra.org/wrem

tuesday

convention

workshops

September 11

10:30 – 11:45 a.m.

monday

How Smart Agents are Turning Clicks into Commissions, Verl Workman

September 10 1:00 – 2:30 p.m.

How to Capture Your Share of the Investment Property Buyers’ Market, Tom Lundstedt

Digital Marketing: The New Kid on the Block, Maura Neill Igniting Your Creative Spark, Sarah Michel, CSP

There’s No Such Thing as a One Person Tango: The Art of Effective Communication, Karel Murray

Scripts that Earn Your Full Commission and Price the House Your Way: Overcoming Objections with Listings, Alexis Bolin

Tablets, the Cloud and Working with Today’s Consumer, Amy Chorew

Mobile Revolution — The Electronic Transaction, Jennifer Lindsley

Residential Property Management: A Down & Dirty Guide, Judy Cook

Blogging for REALTORS® – How to Start and Grow a Great Blog in 2012 , Dana VanDen Heuvel

Marketing/Mobile 2.0, Nobu Hata Home Inspection: Defect or No Defect? That Is the Question, Jonathan Sayas How to Take Better Real Estate Photos — Equipment, Techniques and Software, Bill Alexander

Panel: Technology Tips of the Superstars, Panel of four Wisconsin REALTORS® 1:15 – 2:30 p.m.

How to be a Smartphone Video Producer and YouTube Agent, Neil Mathweg

Making Open Houses Effective, Scott Allen Mobile Apps for REALTORS®: Putting Your Smartphone and Tablet to Work for You, Maura Neill

Capital Markets Update to WI Region (Exhibitor Workshop), Scott Eggen

Double Your Listings and Increase Your Income, Alexis Bolin

How to Capture Your Share of the Investment Property Sellers’ Market, Tom Lundstedt

Pinterest for REALTORS® — Using Visual Marketing to Drive Traffic and Sales, Dana VanDen Heuvel

When Interests Collide! Say What You Mean, Get What You Want, Karel Murray The Cloud, Real Estate and Extreme Customer Service, Amy Chorew Abstracting a Commercial Lease, Judy Cook When Geek Meets Greek: Online Ethics in the Social Media Age, Nobu Hata How to Tweet and Facebook Your Way to a Closing, Beth Jaworksi Divorce, Bankruptcy and Trusts, Oh My!, Jonathan Sayas Taking zipForm® from Desktop to Mobile, Terry Donahue wisconsin real estate magazine

july 2012

Lies the Media Told Me and Other Fairy Tales: Interpreting Economic Factors in Today’s Market, Pam Ermen Reveal Your True Magnificence!, Verl Workman

Single Listing Websites (Exhibitor Workshop), Laura Martinet

2:45 – 4:00 p.m.

BAR-B-Q-ing Those “Sacred Cows!”, Pam Ermen

iPad + Realtor® = iRealtor®, The Real Estate Duo 2:45 – 4:00 p.m.

How to Become a Freakin’ Sales Animal!, Verl Workman REALTOR® on the Go: Taking Your Business Mobile, Maura Neill Priority Pricing: Are Your Properties Positioned to Sell?, Pam Ermen Lead Generation on Craigslist for REALTORS®, Dana VanDen Heuvel Presenting Offers: Learn the Fool-Proof Way to Get Your Offer Accepted, Alexis Bolin

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Registrant One INFORMATION:

 Check here if you are an Association Executive Name___________________________________________ Firm Name __________________________________________ Address_ ________________________________________ City_______________________ State_ _____ Zip____________ Phone (W) ( )___________________________________ (H) ( ) __________________________________________ E-mail Address_____________________________________ WRA member # _______________________________________

*TWO-FER Convention Special: Register one WRA member for one full convention pass at regular price and register a second WRA member at a special introductory price. (see details at www.wra.org/Convention) Your second guest must be a member of the WRA who has NEVER attended the fall convention or has NOT attended in the past five years. Limit one discounted registration per order. Register using this form or by visiting www.wra.org/Convention. After you have registered, you will receive a promotion code. Give this promotion code to a WRA member and tell that member to visit the website to register and take advantage of the discounted pricing.

Two-FER: 2nd WRA Member INFORMATION: Name___________________________________________ Firm Name___________________________________________ Address_ ________________________________________ City ______________________ State _____ Zip _____________ Phone (W) ( )___________________________________ (H) ( ) ___________________________________________ E-mail Address_____________________________________ WRA member # ________________________________________ WRA Member and/or Affiliate Thru 7-20 Thru 8-10 After 8-10  1-Day Pass ( Sun., Mon., Tues. ) circle one $ 84 $ 94 $ 104  Full Convention Pass $ 114 $ 124 $ 134  TWO-FER: 2nd WRA Member* $ 54 $ 64 $ 74  Unlicensed Spouse/Sig. Other $ 35 $ 35 $ 35 Name of Spouse or Significant Other:____________________________________________. Non-Member

Thru 7-20

 1-Day Pass ( Sun., Mon., Tues. ) circle one  Full Convention Pass

$ 114 $ 154

Real Estate Continuing Education

Thru 7-20

Thru 8-10 After 8-10 $ 124 $ 164

$ 134 $ 174

Thru 8-10 After 8-10

ATD $ 124 $ 154 $ 94 $ 55

Thru 7-20

Thru 8-10 After 8-10

www.wra.org/Convention Hotel information: Radisson Paper Valley Hotel 333 W. College Avenue, Appleton, WI 54911 Reservations: (920) 733-8000 Room Rates Standard Room: $109 Release Date: August 10, 2012 To see a complete list of overflow hotels, visit www.wra.org/ConventionHotel Included in Registration Fee: • Packer Party – 9/9 • Icebreaker Party – 9/9 • Real Estate Continuing Education – Four of Six courses included in Full Convention Pass - MUST register in advance first come, first served! • The After Party following the Chairman’s Dinner - (9/10)

ATD $ 154 $ 194

Event Fee – Per Person:

ATD

CE - Attend All 6 (4 FREE – You pay for 2) $15 per $20 per $25 per $45 per (You may select up to FOUR courses for free included in a Full Convention Pass; each additional course pricing above.  Course 1 – Listing Contracts – 8:30 – 11:45 (9/9) - Radisson  Elective A – Short Sales & Foreclosures 8:30 - 12:00 (9/11) - Radisson  Course 2 – Offer to Purchase – 12:30 – 3:45 (9/9) - Radisson  Elective D – Financing – 1:00 – 4:30 (9/11) - Radisson  Course 3 – New Developments – 8:30 – 12:00 (9/10) - Perf. Arts Cntr.  Course 4 – Business Ethics – 1:00 – 4:30 (9/10) - Perf. Arts Cntr. Appraisal Course - 9/11/2012 WRA Appraisal Section Member  Class Only  Class w/ Convention

September 9-11, 2012

Radisson Paper Valley Hotel - Appleton, WI

Golf (9/9) �� $95 Butte des Morts Country Club (includes box lunch)  Member One  Member Two Real Estate BarCamp (9/9 @ 11:30 a.m.) �� FREE  Member One  Member Two Chairman of the Board’s Dinner (9/10) ��$49  Member One  Member Two

ATD

Two-Fer Pricing

CRS Luncheon (9/11) ��$21  Member One  Member Two  Special Services: Check here if you require special needs to attend. Attach written description of needs.

$ 134 $ 144

$ 144 $ 154

$ 154 $ 164

$ 174 $ 184

 2nd WRA Member* .....$ 90

WRA REALTOR® Member  Class Only  Class w/ Convention

$ 144 $ 154

$ 154 $ 164

$ 164 $ 174

$ 184 $ 194

 2 WRA Member* .....$ 100

Non-Member  Class Only  Class w/ Convention

$ 154 $ 164

$ 164 $ 174

$ 174 $ 184

$ 194 $ 204

Cancellation Policy: The WRA reserves the right to cancel courses if not filled. Cancellations must be made in writing prior to September 9, 2012 and will be refunded, minus a $25 administration fee. Registrations cannot be transferred from person to person.

Payment Register by Mail: Wisconsin Realtors® Association 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337

Total amount $__________________  Enclosed is my check made payable to the WRA  Charge my VISA / MasterCard (circle one) Card Number ��Exp. Date___________

Thank You!

Convention Exhibitors, Sponsors and Advertisers The WRA would like to give a special thanks to the following companies for their early support of the 2012 WRA Annual Convention.

Gold Sponsor

silver Sponsor

bronze Sponsor

$10,000 and up

$5,000 – $9,999

$2,000 – $4,999

• • • • • • • • • • • • • • • • • • • • • • • • • • • •

American Home Shield AmeriSpec® Home Inspection Service Associated Bank Bella Vita Ristorante Centralized Showing Service Century 21 Real Estate LLC Chase Coldwell Banker the Real Estate Group, Inc. Commercial Association of REALTORS® Wisconsin Computer System Innovations, Inc. Community First Credit Union Copperleaf Boutique Hotel & Spa DeeSign Diverse Solutions EXIT Realty Corporation International Fairway Independent Mortgage Corporation First American Title Insurance Company Godfrey & Kahn S.C. Greater Milwaukee Association of REALTORS® HMS Home Warranty HomeFinder.com (Gannett WI Media) HUD (U.S. Department of Housing and Urban Development) Insphere Insurance Solutions Johnson Bank Lake of the Torches Resort Casino Magnets USA® Mayfair Title Corporation M&I, a part of BMO Financial Group

• • • • • • • • • • • • • • • • • • • • • • • • • •

MLS, Inc. NEW Title Services, Inc. Office Supplies 2U/Emmons Business Interiors The Osthoff Resort Pearl Insurance Platinum Printing and Packaging PrimeLending, A Plains Capital Company R & S Marketing Radisson Paper Valley Hotel REALTORS® Association of Northeast Wisconsin RE/MAX North Central REGIT, Inc. Royle Printing SentriLock, LLC Showhomes® Southeast Wisconsin Silpada Designs SUPRA GSP (Global Security Products) Teuteberg, Inc. Waterstone Mortgage Corporation Wells Fargo Home Mortgage WHEDA Wisconsin Association of Home Inspectors, Inc™ (WAHI) Wisconsin CRS Chapter Wisconsin Legal Blank Printing & Forms Wisconsin Title, Closing and Credit Services Women’s Council of REALTORS®

convention

sponsorship opportunities Sponsoring an event at the WRA Annual Convention provides refreshments, entertainment and/or speakers that are greatly appreciated by WRA members and convention attendees. In return for your contribution, you receive exposure and recognition. If you are interested in exhibiting or sponsoring, contact Debbie Thacker at (800) 279-1972 or (608) 241-2047 Ext. 256.

wisconsin real estate magazine

july 2012

legal

Preparing Your Seller to Prepare the Home to be Prepared for Showings

Protecting the Seller’s Personal Property As per lines 174-178 “Open House and Showing Responsibilities” of the WB-1 Residential Listing Contract Exclusive Right to Sell listed below, it is the seller’s responsibility to prepare the home for open houses and individual showings. However, sellers often look to their listing agent for guidance.

By cori lamont

Part 2: Safety

This article is the second and last part of a series discussing the importance of not only preparing the property for showings, but also the seller. While the first article focused on some sellers’ most prized possession, their pet, the second installment focuses on the safety of the seller’s personal property, the agent and the property itself.

“Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an ‘individual showing’ or an ‘open house.’ Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold Broker harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during ‘individual showings’ or ‘open houses’ other than those caused by Broker’s negligence or intentional wrongdoing.” Listing agents should review this language with all sellers. In addition, licensees should have a checklist handy or provide suggestions to the seller as to how the seller can go about preparing a home for showings. The following are a few tips that may be helpful to the seller: 1.

Hide or remove any valuables, including electronics, jewelry, weapons and prescription medications.

Do not leave personal information where anyone can see it.

Determine what will be done with the seller’s pet(s) during showings.

Consider removing all references to the names and pictures of any children living in the home.

Protecting the Agent Sometimes individuals do not like to acknowledge a reality that exists because denial is an easy place to reside. However, opening our eyes to a reality allows us to be better prepared if a time comes when we need to react. The reality of the practice of real estate is that while sellers’ properties are being opened to the public, agents are the ones showing the property. Whether it is vacant land, a single-

Confirm that all windows and doors are locked before leaving the property.

wisconsin real estate magazine

july 2012

family residence or a commercial property, agents place themselves in potentially perilous situations every day. A self-defense class is one of the easiest steps to take in learning how to protect yourself. Also, discuss with your broker whether your company has a distress code; if not, discuss whether the broker is interested in creating one. A distress code is a word or phrase that a company has in place that an agent would use if the agent was feeling threatened or uncomfortable while with a consumer. The

www.wra.org/wrem

“...lately in some communities, including a popular Madison neighborhood, police departments have been contacting local boards to notify agents concerning burglaries. ”

company policy should be clear as to what the phrase or term is and what happens when an agent uses the distress code — whether the police are called, another agent is sent out, the agent is to be called away, among other methods. Also, another decision to make is if the company should have a policy that all new clients should be met at the office and possibly provide a copy of a photo identification and possible license number.

10. Have a visitor check-in sheet that allows you to obtain an individual’s name and contact information.

However, the following are some pointers to better protect you as an agent when showing properties or holding open houses.

14. Be observant — stop talking on or looking at your phone!

Trust your instincts.

Pay attention to both your phone and battery strength.

Identify all escape routes as you enter into the property.

Walk behind people; never enter into a room first.

Notify your office, and potentially someone else, as to your location(s) throughout the day and check in regularly.

Check all the rooms, locks and windows prior to the leaving the property.

If possible, avoid showings after dark.

Never go into a space or room you cannot get out of easily.

Lock your purse or wallet in the car.

wisconsin real estate magazine

11. Park at the curb rather than the driveway.

Be certain to be mindful that doors and easily accessible windows are securely locked, even when agents and owners are home.

Check vacant homes frequently.

As the listing agent, introduce yourself to the neighbors — provide them with your business card — and ask them to contact you in the event they notice any unusual activities at your listing. They are there every day and can be a great asset in keeping an eye on the property.

At all showings, make certain that doors and windows are secured when leaving.

Think safety first — do not enter a vacant home if things do not appear “right.”

Protection of the real estate itself may seem like an unusual item to address when discussing safety. However, lately in some communities, including a popular Madison neighborhood, police departments have been contacting local boards to notify agents concerning burglaries. These burglaries have occurred in occupied homes and vacant homes, and it appears that entry was most often made through unlocked windows and doors.

Do not hesitate to contact the local police department. Officers are more than willing to do a walk-through to assure the safety of the home.

Vacant homes are often easy targets as well because it is presumed that no one will be

Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.

12. Always have your keys ready when walking to your car. 13. Lock your car doors once you have entered.

15. Use technology to your advantage. MRIS has created Moby. Moby is a free app that is designed especially for the safety of real estate professionals that will contact emergency services and provide your location. For more information on Moby, visit www.mris.com/mris-products/ affiliated-services/moby.

Protecting the Property

returning home or regularly monitoring the property. Law enforcement also indicated that vandalism and theft are regular issues in vacant properties.

july 2012

There are a variety of resources to learn more about safety. For example, the National Association of REALTORS® has a site dedicated entirely to safety found at www.realtor.org/ topics/realtor-safety.

best of the legal hotline

with tracy rucka

Landlord and Tenant Questions: Information Check-In Sheet Now Required Statewide

Is there a requirement for all landlords to provide a check-in sheet?

landlord may attach an addendum to the current forms to include the “itemized description of the condition of the premises.” Please watch WRA publications and updates for zipForm® for the new form as it becomes available. More information about the recent Wis. Stat. 704 changes is available in the May 2012 Wisconsin Real Estate Magazine article, “Landlord-Tenant Law: New Check-In Sheets & Property Disposal Procedure” at www.wra.org/ WREM/May12/LandlordTenant.

Wis. Stat. § 704.08 states: “Information check-in sheet. A landlord shall provide to a new residential tenant when the tenant commences his or her occupancy of the premises a standardized information check-in sheet that contains an itemized description of the condition of the premises at the time of check-in. The tenant shall be given 7 days from the date the tenant commences his or her occupancy to complete the check-in sheet and return it to the landlord. The landlord is not required to provide the information check-in sheet to a tenant upon renewal of a rental agreement. This section does not apply to the rental of a plot of ground on which a manufactured home, as defined in s. 704.05 (5) (b) 1. a., or a mobile home, as defined in s. 704.05 (5) (b) 1. b., may be located.”

Return of Security Deposit 21 Days The tenant vacated the property midway through the year lease. The landlord is trying to re-rent the unit based on the statutory mitigation requirements but has yet to find a tenant. When will the 21-day trigger to return the security deposit occur? Many provisions formerly found in the Wis. Admin. Code ch. ATCP 134 now also appear as part of Wis. Stat. Ch. 704 in a slightly modified matter. The return of security deposits is now addressed in Chapter 704.28(4). The timing for the return of the security deposit, less authorized withholding, may vary based on four different triggering events:

Wis. Stat. § 704.08 now indicates that the check-in sheet is to include an itemized description of the condition of the premises. Providing a blank check-in form or not providing any property description information because a previous tenant did not complete a proper checkout would not appear to be acceptable. The WRA is currently creating an Information Check-in Sheet. Until the new forms are available, a

wisconsin real estate magazine

If tenant vacates on the termination date, the termination date.

july 2012

If the tenant vacates before the termination date, the date on which a new tenant’s tenancy begins if the premises are re-rented or the termination date of the rental agreement.

If the tenant holds over and does not vacate on the termination date, the date on which the landlord learns that the tenant vacated the premises.

If there is an eviction, the earlier of the date on which the writ of restitution is executed or when the landlord learns the tenant has vacated.

Security Deposit Withholding If a tenant does not leave the apartment clean, can you deduct the cleaning expenses from the security deposit for kitchen, baths and appliances? The return of security deposits is regulated by Wis. Admin. Code § ATCP 134.06, and the new Wis. Stat. § 704.28. Wis. Stat. § 704.28(3) states: “NORMAL WEAR AND TEAR. This section does not authorize a landlord to withhold any amount from a security deposit for normal wear and tear, or for other damages or losses for which the tenant cannot reasonably be held responsible under applicable law.” A detailed statement of claims must be given with a www.wra.org/wrem

return of any security deposit balance owed within 21 days after the tenant vacates the premises as defined in the statute. The landlord may wish to prepare the withholding statement in anticipation of small claims action, in case the tenant challenges the withholding. The landlord can gather photographs and/or video of the unit both before the tenant occupied and after the tenant vacated as well as any check-in and check-out forms that identify the change(s) in condition. In court, the landlord would have the burden to prove that the landlord is entitled to damages by proving the condition of the premises at the commencement and termination of the term, the extent of damage to the premises, and the cost of restoring the premises. Rivera v. Eisenberg, 95 Wis. 2d 384, 387-88, 290 N.W.2d 539 (Ct. App. 1980). This documentation will help the landlord prove that any withholding was for damage to the apartment, appliances and/or carpets and was for conditions beyond normal wear and tear. In other words, the landlord would establish that the apartment required cleaning because of conditions that showed “much more than normal wear and tear.”

Landlord-Tenant Resources

Multiple Tenants and Rent

Below are other WRA publications containing information about property management and landlord/tenant law: •

February 2012 Legal Update, “Early 2012 Developments” at www.wra.org/ LU1202

•

April 2009 Legal Update, “Wisconsin Rentals” at www.wra.org/LU0904

•

July 2003 Legal Update, “Residential Rental Primer” at www.wra.org/ LU0307

•

May 2012 Wisconsin Real Estate Magazine article, “Landlord-Tenant Law: New Check-In Sheets & Property Disposal Procedure” at www.wra.org/ WREM/May12/LandlordTenant.

•

The Hottips Library at www.wra. org/Legal/Hottips/Legal_Hottips_ Overview

What can the landlord do when one of the three tenants is not paying rent? The lease may indicate if there is joint and several liability with regard to the tenants’ responsibility for the rent. Joint and several liability essentially means that each individual tenant is legally responsible for the full amount of the rent regardless of whether one tenant does not pay a portion of the rent while the others pay their respective shares. The landlord may give notice to all tenants that the rent has not been paid in full and can attempt to collect from all tenants, even those who have paid “their share” of the rent.

Other resources: •

Lease Term

Tenants Occupy the Property for Sale

Can a written residential lease include an automatic renewal at the end of the lease term?

The buyer is purchasing a duplex and wants to move in to one of the units. The offer has been negotiated and the seller is saying that the tenants won’t move out. Does the lease run with the property or with the owner? What is the buyer’s recourse?

A lease terminates upon the expiration date unless the landlord and tenant agree to extend the lease or if there is an automatic renewal clause and the landlord gives proper notice. Wis. Stat. § 704.15 sets forth the landlord’s requirements to notify the tenant of an automatic renewal. The automatic renewal is not enforceable unless the landlord gives written notice calling the attention of the tenant to the upcoming renewal or extension. If there is a renewal clause and the landlord fails to give the required notice, the lease ends at the end of the lease term. In such a case, the landlord and tenant could agree to amend the lease to extend for a new term or agree to a month-to-month tenancy.

The sale of a property does not terminate a lease. When a buyer writes an offer on a currently rented property, the buyer purchases the property subject to the lease terms. Wis. Stat. § 704.09 requires that a buyer or other transferee take ownership of the property subject to the tenant’s rights. The new owner will “step into the seller’s shoes” and must honor the current tenant’s lease. Moreover, according to lines 140143 of the 2011 WB-11 Residential Offer to Purchase, the seller shall assign the seller’s rights under the existing leases and wisconsin real estate magazine

transfer all security deposits and prepaid rents to the buyer at the time of closing. The buyer takes title to the property subject to the rights of the tenants. Therefore, the terms of the leases should be stated when the offer is negotiated. Neither the buyer nor seller can unilaterally terminate the leases. Either may, however, attempt to negotiate with the tenants to change their lease terms or agree to terminate the lease early.

july 2012

“The Wisconsin Way: A Guide for Landlords and Tenants from the Department of Agriculture Trade and Consumer Protection”: •

Detailed information: datcp. wi.gov/consumer/wisconsin_ way/index.aspx

•

Downloadable brochure: datcp. wi.gov/uploads/Consumer/pdf/ WisconsinWayWEB.pdf

•

Tenant Resource Center: tenantresourcecenter.org/pc

•

Attorney referral information Wisconsin Bar Association: www. wisbar.org

•

A listing of local apartment associations in Wisconsin: www. thelpa.com/lpa/associations/ wisconsin.html

Tracy Rucka is Director of Professional Standards and Practices for the WRA.

To Disclose or to Not Disclose, Is that the Question? By debbi conrad

The Wisconsin Administrative Code rules regarding “Conduct and Ethical Practices for Real Estate Licensees” in chapter REEB 24 have been updated. The reasons for the update are (1) to eliminate a few rules that no longer make sense given the current agency law in Wis. Stat. chapter 452, and (2) to bring better clarity to the remaining rules that impact everyday real estate practice. The revised regulations went into effect on July 1, 2012. One area where the revisions aim for sharper focus is the requirements for providing disclosure of agency. These rules for giving the Broker Disclosure to Customers and the Broker Disclosure to Clients to the parties in various real estate transactions are found in Wis. Admin. Code § REEB 24.07(8). Customer Signatures on Broker Disclosure to Customers A broker cannot negotiate on behalf of a party who is a customer unless the broker first provides the Broker Disclosure to Customers. That rule is nothing new, but there is a subtle change here that impacts the forms the licensees use. If the transaction is for a residential property with one to four dwelling units, the broker is required to ask for “the party’s signed acknowledgement” — in other words, a signature. That is a change since the prior rule said the broker had to ask for the party’s written acknowledgement through initials or a signature. That is a significant change because the WRA Broker Disclosure to Customers form asks for the customers’ initials, and the new language calls for signatures. What this means for brokers working in transactions with one to four family properties is that starting July 1, 2012, they must ask customers to sign the Broker Disclosure to Customers. This may be accomplished in a few different ways. They can use the WRA’s revised forms available in paper copies and zipForm®. If the brokers have existing paper copies of the WRA Broker Disclosure to Customers form, they may use those forms together with the WRA Addendum to Broker Disclosure to Customers, available on the WRA’s website at www.wra.org/FormsUpdate. They can also use the existing paper copies if they remember to ask the customers to sign instead of initial because the rule requires that the “broker shall request the party’s signed acknowledgement that the party has received a copy of the written disclosure statement,” not that the form say that a signature is needed or even that a signature actually be obtained. Obviously using the WRA Addendum is a better option because that will help the agents remember that signatures must be requested

wisconsin real estate magazine

july 2012

and will help assure the customers that there has been a change in the legal requirements. Remember that this change only applies to transactions where the “brokerage services are related to real estate primarily intended for use as a residential property containing one to four dwelling units.” Agents do not need to request signatures in commercial, retail, industrial or transactions with five or more dwelling units.

Disclosure of Agency to Customers The revised § REEB 24.07(8) gives guidance for specific circumstances when brokers must give a Broker Disclosure to Customers. For instance, most licensees realize that a listing broker must provide a Broker Disclosure to Customers to the buyer in the transaction if the listing broker is negotiating directly with the buyer and not through a selling broker or a buyer’s broker. In this case, the listing broker is the only broker involved with the parties, which makes it important that the buyer understand that the listing broker is working for the seller. If you flip that around to a case where there is only a buyer’s broker participating in the transaction, then the buyer’s broker needs to provide a Broker Disclosure to Customers to the seller if the buyer’s broker is negotiating directly with the seller and not through a listing broker. This occurs when a buyer represented by a buyer’s broker negotiates with an FSBO seller. Note that in these instances, the requirement to provide a Broker Disclosure to Customers is triggered by negotiation. Negotiations begin when the discussions with the person exit the providing www.wra.org/wrem

wisconsin real estate magazine

july 2012

information phase and enter the offer or proposal development phase. Negotiations occur when an agent works on developing proposals for the other party’s consideration or works on reaching an agreement between the parties. Negotiations, simply stated, would include acting as an intermediary, drafting approved forms and presenting approved forms. Therefore, a buyer’s agent would be responsible to provide the seller-customer with a copy of the Broker Disclosure to Customers form if the agent was going to present the buyer’s offer to purchase to the seller because presenting party proposals and providing a general explanation of the proposal is within the definition of “negotiate” found in Wis. Stat. § 452.01(5m). When a broker is working with a buyer, not as a buyer’s agent but rather as a subagent, the subagent broker shall provide a Broker Disclosure to Customers to the buyer-customer with whom he or she is working. Subagency occurs when a broker is engaged by another broker to provide brokerage services in a transaction, but is not the other broker’s employee. For example, a cooperating broker who works for a listing broker in attempting to find a buyer and sell the property is a subagent. The subagent does not, however, need to provide any disclosures to the principal broker’s client. For example, the subagent of a listing broker gives a disclosure to the buyer, but not to the seller. Similarly, principal brokers are not required to provide a Broker Disclosure to Customers to the customers of their subagents. For example, a listing broker doesn’t give disclosure to a buyer working with a subagent. The Broker Disclosure to Customers is not only for sales transactions either. A licensee shall provide a Broker Disclosure to Customers to prospective tenants when negotiating lease terms on behalf of the client, who could be the owner or landlord. The trigger here will be whether the licensee is actually negotiating lease terms or whether a completed, nonnegotiable lease is simply presented to tenants.

Disclosure of Agency to Clients A broker cannot negotiate on behalf of a client unless the broker first provides the Broker Disclosure to Clients. This normally is not

wisconsin real estate magazine

july 2012

a problem because most of the listing contracts and the WB-36 buyer agency agreement contain the language of the Broker Disclosure to Clients. The rule indicates that if the Broker Disclosure to Clients is not within agency agreement, then the broker must first provide the Broker Disclosure to Clients and ask the party to sign it to acknowledge receipt if the property has one to four dwelling units. Fortunately the WRA Broker Disclosure to Clients calls for the client to sign so no changes are necessary with that form. This form may need to be used separately with REO listings, for example, where the asset manager provided a listing contract for the broker to sign that does not contain the Wisconsin agency disclosure provisions. In the rental world, a licensee entering into a lease listing or a property management contract must provide the client with the Broker Disclosure to Clients. This may be provided separately as some of these agency agreements have not yet been updated to include the Broker Disclosure to Clients language, and a signature may need to be requested if there are one to four units. This article began by asking, “To Disclose or to Not Disclose, Is that the Question?” And what is the answer? A resounding “No!” The revised chapter REEB 24 makes it eminently clear that disclosures in writing are required in a wide array of situations. Agency relationships should never be in doubt. Any time there is even a possibility that there may be negotiation, prudent practice will dictate giving a Broker Disclosure to Customers to parties who are not clients. Providing those written disclosures will go a long way toward keeping an agent off the DSPS Division of Enforcement’s radar screen. To see the revised Wis. Admin. Code chapter REEB 24, go to https:// docs.legis.wisconsin.gov/code/admin_code/reeb/24.pdf. To read more about the July 1, 2012 updates to Wis. Admin. Code chapter REEB 24, read the June 2012 Legal Update, “REEB 24 Regulatory Revisions,” at www.wra.org/LU1206. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA. www.wra.org/wrem

WRA Annual Convention I September 9–11, 2012 I Appleton

education

Last Call for Convention Photo Contest! Photo submissions and voting ends next month Contest entrants submitted another 100 photos since the photo contest report in last month’s magazine! Is your photo one of them? We want to see Wisconsin through your lens. Enter your best photographs that capture Wisconsin life — lakes, landscapes, animals and more — for your chance to win prizes! The winners are decided by YOU. View photos taken by your friends and co-workers, and vote for your favorites. All Wisconsin REALTORS® are allowed to vote in the contest. The three photos with the most “likes” win prizes. With only one month left, enter your photo and/or vote now! The contest is open now through August 10! For complete rules, to submit photos and to vote, visit www.wra.org/ConventionPhotoContest.

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wisconsin real estate magazine

july 2012

© 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in WI.

four ways

to complete your Required Continuing Education

real estate

continuing education on-demand

Wisconsin’s #1 Choice for Real Estate education 2. LIVE If you enjoy classroom participation, the WRA’s live courses are just for you! The WRA hosts CE courses throughout the state at various dates and times taught by Wisconsin’s finest instructors. Schedule a class now! For a list of courses offered in your area, visit www.wra.org/LiveCE.

AS low as

/course

with member 6-pack pricing

The Wisconsin REALTORS® Association (WRA) is Wisconsin’s #1 choice for real estate education. With four convenient options, you can complete your 2011-2012 continuing education requirements with ease! Our Distance Learning On Demand gives you the autonomy to take courses on your schedule and at your own pace — anywhere and anytime.

1-800-279-1972

www.wra.org/ceondemand

1. On Demand

3. Booklet / online exam

Six-Pack Discount The six-pack option allows you to take the four mandatory classes and two elective courses of your choice for only $126. ($21 per course)

The WRA’s comprehensive, easy-to-follow self-study booklets allow you to complete your CE at your own pace and on your own schedule. You can then take the corresponding exam online when you are ready. Courses 1, 2, 3 and 4 as well as Electives A, B, C and D are available in this handy format. $27/course/member www.wra.org/BookletCE

Four-Pack Discount Choose any combination of the mandatory and elective courses for only $92. ($23 per course) Individual Courses Choose any single course for the low price of $27/course. Commercial CE courses can be purchased individually as well. For complete details, visit

www.wra.org/ceondemand

4. DVD / online exam Complete CE in the comfort of your own home with the WRA’s DVD option. Watch the CE class on DVD, follow along with the outline, then take the corresponding exam online. All 20112012 CE courses are available through this program. $27/course/member www.wra.org/DVDCE

Commercial CE The WRA’s commercial-centric CE courses are designed specifically for those who practice in the commercial real estate world, available in classroom or On Demand. www.wra.org/Commercial

All pricing listed above is for Wisconsin REALTORS® Association members only. Non-member pricing is based on a different scale. 4- and 6-Pack pricing only available for On Demand. Commercial CE courses not offered in On Demand 4- and 6-Pack Options. Sold only as individual courses.

Course Schedule

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

*Plus books **Wisconsin CRS Members receive a $20 discount

October 2-3, 2012 November 1–2, 2012

2-day ABR Course CRS 202*

Milwaukee Milwaukee

Regular

$250* $250**

$260* $260**

Conference and Conventions Date Event/Course

Location

September 9–11, 2012

Radisson Paper Valley Hotel in Appleton

Real Estate Continuing Education

Date

Course

July 9, 2012 July 23, 2012 July 25, 2012 July 25, 2012 August 1, 2012 August 2, 2012 August 6, 2012 August 8, 2012 August 10, 2012 August 15, 2012 August 20, 2012 August 30, 2012 September 5, 2012 September 6, 2012 September 6, 2012 September 6, 2012 September 9, 2012 September 10, 2012 September 11, 2012 September 11, 2012 September 13, 2012 September 13, 2012 September 14, 2012 September 17, 2012 September 19, 2012 September 20, 2012 September 24, 2012 September 25, 2012 September 26, 2012 September 27, 2012 September 27, 2012 September 27, 2012 September 27, 2012 October 1, 2012 October 2, 2012 October 2, 2012 October 3, 2012 October 3, 2012 October 4, 2012

2011-12 Course 3 – DVD Manitowish Waters 2011-12 Course 4 – DVD Manitowish Waters 2011-12 Elective C Sheboygan 2011-12 Courses 1 & 2 Madison 2011-12 Course 1 & 2 Brookfield 2011-12 Course 3 & 4 Brookfield 2011-12 Elective A – DVD Manitowish Waters 2011-12 Course 3 & 4 Madison 2011-12 Elective D & A Brookfield 2011-12 Elective D & A Madison 2011-12 Elective C – DVD Manitowish Waters 2011-12 CE 1 & 2 (Commercial) Milwaukee 2011-12 CE 2 & 1 Brookfield 2011-12 CE 4 & 3 Brookfield 2011-12 CE Elective B – DVD Janesville 2011-12 CE 1 – DVD La Crosse 2011-12 CE 1 & 2 Convention-Appleton 2011-12 CE 3 & 4 Convention-Appleton 2011-12 Elective A & D Convention-Appleton 2011-12 CE 2 – DVD La Crosse 2011-12 CE 2 & 1 Madison 2011-12 CE 3 & 4 (Commercial) Milwaukee 2011-12 Elective A & C Brookfield 2011-12 CE 3 – DVD La Crosse 2011-12 CE 1 & 2 West Bend 2011-12 CE 4 & 3 Madison 2011-12 Course 1 – DVD Manitowoc 2011-12 Course 2 – DVD Manitowoc 2011-12 CE 3 & 4 West Bend 2011-12 Electives A & C Madison 2011-12 CE 4 – DVD La Crosse 2011-12 CE Course 1 – DVD Janesville 2011-12 CE Electives A & D (Commercial) Milwaukee 2011-12 Course 3 – DVD Manitowoc 2011-12 CE 1 & 2 Appleton 2011-12 Course 4 – DVD Manitowoc 2011-12 CE 1 & 2 Elkhorn 2011-12 Elective A – DVD La Crosse 2011-12 Elective A – DVD Manitowoc

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

Date

Appraisal Continuing Education

September 11, 2012

Pre-License Available online!

QuickStart

Date October 1-5, 8-10, 2012

WRA Annual Convention

Location

UAD: Coping with the Aftereffects

Appleton

Sales Pre-license Course

Madison

(715) 356–3400 (715) 356–3400 (920) 457–7908 (800) 279–1972 $27/m; $35 nm (800) 279–1972 $27/m; $35 nm (800) 279–1972 $27/m; $35 (715) 356–3400 (800) 279–1972 $27/m; $35 nm (800) 279–1972 $27/m; $35 nm (800) 279–1972 $27/m; $35 nm (715) 356–3400 (800) 279–1972 (800) 279-1972 $27/m; $35 nm (800) 279-1972 $27/m; $35 nm (608) 755-4854 (608) 785-7744 (800) 279-1972 (800) 279-1972 (800) 279-1972 (608) 785-7744 (800) 279-1972 $27/m; $35 nm (800) 279-1972 (800) 279-1972 $27/m; $35 nm (608) 785-7744 (262) 338-8114 (800) 279-1972 $27/m; $35 nm (920) 553-6227 (920) 553-6227 (262) 338-8114 (800) 279-1972 $27/m; $35 nm (608) 785-7744 (608) 755-4854 (800) 279-1972 (920) 553-6227 (920) 739-9108 (920) 553-6227 (262) 723-6851 (608) 785-7744 (920) 553-6227

Location

$280* $280**

Price

Course

A.T.D.

Member price Non-Member price $325*

$335*

* Plus books

sales training program

www.wra.org/QuickStartOnDemand

wisconsin real estate magazine

july 2012

legislative

By joe murray

Tom Barrett

Recall

Fever Ends

Scott Walker

Gov. Scott Walker’s second win over Milwaukee Mayor Tom Barrett in two years was bigger than his first victory in 2010. In fact, the June recall election between Walker and Barrett broke several previous records that will likely stand for years to come.

•

Scott Walker became the first governor in U.S. history to survive a recall election. Only two governors have ever been successfully recalled from office: Republican Gov. Lynn Frazier of North Dakota in 1921 and Democratic Gov. Gray Davis of California in 2003. Honorable mention goes to Lt. Gov. Rebecca Kleefisch, as she was the first Lt. Gov. to face and survive a recall in U.S. history.

•

The 2012 recall election set a modern day record for non-presidential mid-term voter turnout with 57.7 percent. The previous high was 1962, where 52.4 percent voted in a gubernatorial race that was not on a presidential ballot. Perhaps this should not have been a surprise. In the May 8 primary election, Walker received 626,538 votes running in a GOP primary without serious opposition. Voter turnout surged in both the primary and general elections. Wisconsin voters were highly engaged in the recall elections.

•

Walker defeated Barrett by a larger margin the second time they ran against each other. In 2010, the win was Walker over Barrett by 124,638 votes. In 2012, it was Walker over Barrett by 172,447 votes. So, Walker was the first governor to face a recall and increase his margin of victory.

•

Figures compiled by the Wisconsin Democracy Campaign (WDC) show spending on the 2012 recall election more than doubled the amount spent on the 2010 governor’s race. Walker and Barrett, along with allied third-party groups, spent an estimated $80 million in the 2012 gubernatorial recall election. Total spending by all parties in 2010 reached $37.4 million. The WDC further estimates that total spending by all candidates and third parties on recall elections in 2011 and 2012 reached $125 to $130 million.

State Legislators in the U.S. Who Have Lost Recall Elections

Year

State

Legislator

Party

2012

Wisconsin

Van Wanggaard

Republican

2011

Arizona

Russell Pearce

Republican

2011

Michigan

Paul Scott

Republican

2011

Wisconsin

Dan Kapanke

Republican

2011

Wisconsin

Randy Hopper

Republican

2003

Wisconsin

Gary George

Democrat

1996

Wisconsin

George Petak

Republican

1995

California

Doris Allen

Republican

1995

California

Paul Horcher

Republican

1988

Oregon

Bill Olson

Republican

1985

Oregon

Pat Gillis

Republican

1983

Michigan

David Serotkin

Democrat

1983

Michigan

Phil Mastin

Democrat

1971

Idaho

Aden Hyde

Republican

1971

Idaho

Fisher Ellsworth

Republican

1935

Oregon

Harry Merriam

Republican

1914

California

Edwin Grant

Democrat

1913

California

Marshall Black

Republican

wisconsin real estate magazine

july 2012

he Wisconsin gubernatorial recall was the third of its kind in U.S. history, and several election facts are worth noting before we move on to the November 6 general elections.

Joe Murray is Director of Political and Governmental Affairs for the WRA.

www.wra.org/wrem

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Every Dream Deserves a Chance DreamBlueBlog.com • ColdwellBankerOnline.com wisconsin real estate magazine

july 2012

By tom Larson

New Changes to Wisconsin Wetlands Regulations

n February 29, 2012, Gov. Walker signed into law legislation aimed at modifying Wisconsin’s wetland regulations. (2011 Wisconsin Act 118.) While critics have claimed that the new law takes away the DNR’s authority to regulate activities impacting wetlands, Act 118 actually gives the DNR more flexibility to consider mitigation and to look holistically at the environmental impacts of projects that could impact wetlands. Moreover, the new law will make Wisconsin’s general permitting standards more consistent with federal regulations and will likely result in a net increase in overall wetlands in the state.

Mitigation One of the most significant changes in the new law is the greater acceptance and use of mitigation. Mitigation allows new wetlands to be restored, enhanced or created, either on site or off site, to compensate for the filling in of other wetlands. Under Act 118, the three following changes were made to the mitigation requirements: 1. Mitigation can be used for all wetlands. Under prior law, mitigation could not be considered if the project was in an area designated as an area of special natural resource interest (ASNRI). This is a broad list that encompasses a significant number of wetlands. For example, one of the 12 categories of ANSRI is cold water streams, including trout streams, which constitute 20 to 25 percent of the streams in the state. Under Act 118, mitigation can be considered for all wetlands. 2. Mitigation can be considered at the beginning of the permitting process. Under prior law, mitigation could not be considered until the end of the permitting process. Before mitigation could be considered, a permit applicant would first have to demonstrate that the wetland could not be avoided and that as impact was minimized to the greatest extent possible. As a result, the DNR never had the opportunity to look at

wisconsin real estate magazine

july 2012

mitigation for most projects. Under Act 118, mitigation can be considered during the early stages of the permitting process along with other factors in determining whether to issue a permit. 3. Mitigation must be used for all individual permits. Under prior law, mitigation was rarely used or authorized under the permitting process. Under Act 118, wetland mitigation is required for all individual permits at a minimum ratio of 1.2 acres of newly created wetlands for every 1 acre of wetland filled, which will result in a net gain of wetlands in the state. The DNR is directed to develop mitigation ratios for different activities that meet or exceed the minimum 1.2 ratio.

Net Environmental Impact Another important change to the law is the requirement for the DNR to consider the “net environmental impact” of the proposed project after it is completed, taking into consideration mitigation and other environmental benefits of the project. Under current law, mitigation and other environmental benefits are not factors acknowledged in the review process. As a result, even if the wetland and surrounding environment would be greatly improved due to mitigation and some of the other environmental improvements proposed as part of the project, the project would be denied if it harmed a wetland.

www.wra.org/wrem

Under Act 118, the DNR may now consider the impact on functional values resulting from the mitigation and the net positive or negative environmental impact of the proposed project. This allows the DNR to consider the overall environmental impacts of the project to the watershed, but continues to give the DNR the discretion to deny the proposed project if the DNR determines that the project will not result in a net environmental benefit.

Practicable Alternatives The new law also creates a new definition for the term “practicable alternative,” which was often the litmus test used to determine whether a project would be eligible for a permit. Under prior law, the DNR could not authorize a wetland project if there was a “practicable alternative,” which was defined so broadly that if the project could be built somewhere else — even on different property not owned by the permit applicant — then the permit would be denied. Under Act 118, the term “practicable” is now statutorily defined to mean “reasonably available and capable of being implemented after taking into consideration cost, site availability, available technology, logistics, and proximity to the proposed project site, in light of the overall purpose and scope of the project.” In addition, review of the scope of practicable alternatives can be further limited to the project site or adjacent site if the applicant can demonstrate that the project will (1) “result in a demonstrable public economic benefit,” (2) is necessary for the “expansion of an existing industrial or commercial facility,” or (3) is

wisconsin real estate magazine

july 2012

in an industrial park in existence at the time of the application. As a result of the changes, the definition and applicability of the practicable alternatives standard will be limited to alternative site locations where the project could be reasonably located without making significant changes to the purpose or the scope of the project.

Wetland General Permits Act 118 also makes a few significant changes to the wetland general permitting process in order to make Wisconsin law more consistent with federal law. Under current federal law, a streamlined permit process allows for minor activities that are deemed to have minimal impact on wetlands; for example, a general permit for adding another garage stall onto a home. State law did not have this same type of shoreland permit process for minor activities. Under the new law, certain activities where 10,000 square feet or less (0.2 acres) of wetlands will be disturbed are eligible for a general permit. While these activities will be eligible for general permits, the DNR continues to have the authority to establish requirements, conditions and exceptions for the general permits to ensure that the discharges will cause only minimal adverse environmental effects.

Timelines for New Permits The DNR is in the process of developing the new permits and guidance documents to help implement the new law changes. The individual permit documents will likely be completed by July 1, 2012, while the target completion date general permit documents is August 1, 2012. For additional information on the new changes to Wisconsin’s wetlands laws, please contact Tom Larson (tlarson@wra.org) at (608) 240-8254. Tom Larson is Vice President of Legal and Public Affairs for the WRA.

Realtor® sales tip

The Heftier the Deposit, the Stronger the Commitment!

recent experience reminded me why I encourage getting large deposits when negotiating real estate. After being under contract for several weeks, the buyers, who had signed an all-cash offer for $250,000, called their agent to inform him that they did not have the money to fulfill their contractual obligations and wished to forfeit their earnest money deposits. The buyers had $22,500 in escrow.

initial deposit and then a more substantial deposit within the next 10 days to two weeks, bringing the total held in earnest money to about 5 percent. This deposit in a Florida transaction is typically an additional amount of money put into escrow and usually is paid after inspections are complete and approved by the buyer, and the additional deposit is a few days after the inspection period and two to three weeks after the contract is signed. Knowing the law concerning escrow monies is critical, as in my state of Florida, an offer to purchase with no binder money down is just as valid as an offer with accompanying binder money.

In Florida, buyers pay earnest money deposits, which are escrowed. One of my tips for ensuring that written transactions have a chance of closing is to always collect between 3 to 5 percent of the contract sales price as your good faith escrow binder. In Wisconsin, earnest money is not typically escrowed but is held in the listing broker’s trust account; the parties may agree to have a third party hold the earnest money. The parties or their attorney should draft the escrow agreement stating the terms of the third party holding the buyer’s earnest money. There is no standard to the amount of earnest money; each firm has its own guidelines, so be familiar with and follow your office’s guidelines. Community standard of practice may also help to establish the typical amount of a buyer’s earnest money.

Earnest money amounts can vary. If the sale goes through, the earnest money is applied against the down payment or as per the terms of the Wisconsin offer against the purchase price. In Florida, if the buyer is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded. If the purchaser of Florida property wants the down payment to be refundable, the agent should insert a clause in the offer specifying the conditions under which the deposit will be refunded. In a Wisconsin transaction, the offer states that the earnest money shall be disbursed according to a written disbursement agreement signed by all the parties to the offer. Review lines 370-394 of the WB-11 Residential Offer to Purchase for the discussion on earnest money.

“Good Faith Sum of Money” is the earnest money that a buyer commits to show the seller that they’re serious. This money is given to bind a contract, for example, an agreement to purchase real property. In my experience, most times, buyers make a small

wisconsin real estate magazine

With signs of improvements in many markets across the country, finding yourself in a multiple

july 2012

By marcus A. wally

offer situation is likely — and this strong likelihood justifies a substantial deposit to ensure that the buyer’s offer is not compromised. Imagine a multiple offer situation and most other terms and conditions in both offers were quite similar, but the one big difference was the earnest money deposit amount. Without coaching the buyers on the importance of showing commitment from beginning to end, they may lose the opportunity to buy. As mom taught us — you never get a second chance to make a good first impression! It is wise for a seller to require buyers to show a solid monetary commitment if they wish the seller to take their property off the market. Buying a home is a fun and exciting experience, and putting down earnest money is just one of the many steps to get there. Be direct when asking for the buyer’s solid commitment in placing earnest money … you and your seller will appreciate your business approach to this critical element in a real estate transaction. Marcus A. Wally, MBA, is an active REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages the 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 at marcus@newworldrealty.com. Learn more about him at www.newworldrealty.com. www.wra.org/wrem

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What is our WHEDA Advantage ? ®

WHEDA’s low interest rate. Now is the time to take advantage of WHEDA’s low, 30-year fixed interest rate. The WHEDA Advantage has everything home buyers need to become successful homeowners including down payment assistance, job-loss mortgage payment protection, access to educational resources, quick loan approval and more. Income and loan limits apply. Interest rates are subject to change daily. To learn more, go to www.wheda.com/advantage. WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY 800.334.6873 ■ www.wheda.com