March 2013 - Wisconsin Real Estate Magazine by Lauren Bizorik

Real Estate Wisconsin

A Publication of the Wisconsin REALTORSÂŽ Association

magazine March 2013 Vol. 29 No. 6

January numbers

Wisconsin housingâ&#x20AC;&#x2122;s on a roll.

The ethical appraiser

USPAP, tips, cooperation and more.

Association planning

An update on WRA strategic planning.

Safety and social media Think before you type.

FOCUS

Code of ethics begins ITS 2nd century

WISCONSIN’S #1 MORTGAGE LENDER THANKS TO OUR CUSTOMERS, IT’S A TITLE WE’VE OWNED FOR FOUR YEARS IN A ROW. Visit us online at AssociatedBank.com

We’ve been helping our neighbors obtain homes — and stay in them — for 150 years and we continue to show our commitment to growing the communities we serve. For the past four years, Associated has originated more home loans than any other lender in Wisconsin.

or call our Associated Mortgage Relationship Team at 855-432-5715 (available Mon. – Fri., 8 a.m. – 5 p.m.).

Here’s why Wisconsin’s first choice for home loans should be your customer’s first choice too: • They can select from a variety of home loan options. • They will receive the expert guidance needed to help select the right loan for their specific situation. • They can expect fast approvals and personal service from our local mortgage lenders.

*The Wisconsin’s #1 Mortgage Lender designation is based on information gathered from the Home Mortgage Disclosure Act data compiled annually by the Federal Financial Institutions Examination Council. The results of the data were obtained through Source: SNL Financial, LC, November 2012. Deposit and loan products are offered by Associated Bank, N.A., Member FDIC and Associated Banc-Corp. Loans involve interest and other costs. Please ask about details. All mortgage programs are subject to credit approval and property evaluation. Property insurance and flood insurance, if applicable, will be required on all collateral. Equal Housing Lender. (3/13) 2905

contents March 2013 | Vol. 29, No. 6

14 8

7 Risky, nasty, ugly 12 Appraiser ethics 15 Legal Hotline 18 REALTOR® sales tip 25

January housing

Wisconsin home sales started the year with a bang.

The consequences of unethical practice.

Ethics applies to appraisers, too — here’s what you should know.

Guest writer Maura Neill tells how you can stay safe on social media.

26 Scratching your head? 28 Roggensack v. Fallone

The WRA is seeking legislation to clarify permit processing for property owners.

Learn about each candidate in Wisconsin’s state Supreme Court race.

REALTOR® in the Community

Cover Story

Meet Madison-area REALTORS® Kim and Randy Tews in the March column of REALTOR® in the Community. Kim and Randy’s organization, Outreach for World of Hope, provides humanitarian aid, medical supplies, educational assistance, and more, to impoverished children and families in Guatemala.

The REALTOR® Code of Ethics turns 100 years old in 2013. And, it has aged nicely. Kevin King, local board president and member of NAR’s Professional Standards Committee, looks at the changes to the Code over the last century and how it is operating today. Page 8.

Pictured at right is Randy during a visit to Guatemala. Learn more about the Tews’ mission on page 30.

WIREALESTATEMAG • MARCH 2013

Ethics involving advertising, personal transactions and more.

A Message from the President by Mike Theo

Doing Things Right and Doing the Right Things

WIREALESTATEMAG • MARCH 2013

013 is off to a quick start. Our markets continue to show signs of strength in January — with sales up 18 percent and prices up 3.4 percent over last year. That makes 19 straight months of doubledigit sales increases over the previous year. A nice trend indeed. The WRA is also experiencing a fast beginning to the New Year. In January, we completed an important board of directors meeting and began an even more important strategic planning process. The fundamentals of our marketplace are strong: historically low interest rates, shrinking inventories, increasing sales in all regions of the state, falling foreclosures, stable or increasing prices, growing new construction, the return of multiple offers, lower unemployment than the national average and higher housing affordability. The fundamentals of our association are similarly strong. In January, the board of directors was briefed by our auditors that the WRA is financially solid. The first quarter of the current fiscal year shows we exceeded budget projections for dues, CE income and membership renewals. Our 2013-14 continuing education courses were approved, and live class offerings began in February. Planning for the 2013 WRA convention at the Kalahari Resort in Wisconsin Dells on September 15-16 is in full swing, with the energy already building around the rocking theme of “Taking it to the Streets.” The directors saw how our members were using our website, reading our publications and engaging our association and fellow REALTORS® through WRA social media. The directors approved an aggressive legislative agenda that included a full plate of issues covering land use, license law, economic development, tax reform and the protection of private property rights. They reviewed license law developments at the Department of Safety and Professional Services and the Real Estate Examining Board. They also set an ambitious

To explore this more complex question, the WRA recently began a robust strategic planning process that involves qualitative and quantitative research of today’s, as well as tomorrow’s, marketplace that asks how the WRA can help members make the American Dream of homeownership a reality for qualified individuals and families. fundraising goal for the REALTORS® Political Action Committee (RPAC). And very significantly, after a detailed briefing and discussion, the directors voted unanimously to endorse the re-election of Wisconsin Supreme Court Justice Pat Roggensack in the spring 2013 election. Looking at the January board of directors meeting, it’s clear from the breadth and success of the many programs, projects, issues and activities, that the WRA is doing things right. But looking ahead, the more critical question is: are we doing the right things? To explore this more complex question, the WRA recently began a robust strategic planning process that involves qualitative and quantitative research of today’s, as well as tomorrow’s, marketplace, then asks how the WRA can help members make the American Dream of homeownership

a reality for qualified individuals and families. The qualitative research has involved five focus groups of members across the state, including one with our board of directors. What we’re hearing is fascinating. Market information is ubiquitous and available to anyone with access to the Internet, yet the increasingly sophisticated consumer continues to seek the advice of a professional who knows local markets and how to navigate the complexity of a real estate transaction. Members want their association to help protect that marketplace by ensuring quality market statistics, enhanced professionalism, promoting favorable laws and regulations, delivering superior educational opportunities, and providing state-of-the-art communications. Our strategic planning research will next include quantitative research in the form an electronic survey to all members in mid to late March. This phase of our planning process will synthesize what we’ve heard in the focus groups and ask you — each and every one of you — what you think. The results will be used to create a final vision and plan for the board of directors to review and approve at their May meeting. The plan will then help guide our structure, focus, budgets and programs for years to come. Hopefully, our improving marketplace will continue and everyone will be busy as we head into the prime selling season. But when you receive the strategic planning e-mail survey, please take a few precious minutes to respond. Your participation will allow us to create an even more effective association moving forward. For now, we will continue doing things right. And with your input, we will ensure in the future we’re doing the right things.

real estate inside the wra

magazine

Editorial Staff: Publisher: Michael Theo Editor: Lauren Bizorik Advertising: Robert Uhrina WRA Executive Committee: Renny Diedrich, Chairman Steve Lane, Chairman-Elect Dan Kruse, Treasurer Paul Schieldt, Vice President Peter Sveum, Vice President K.C. Maurer, Vice President Erik Sjowall, Vice President Contact Information: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 608-241-2047 • 800-279-1972 e-mail: editor@wra.org website: www.wra.org POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337. Wisconsin Real Estate Magazine™ is published by the WISCONSIN REALTORS® ASSOCIATION. Trademark issued pursuant to Wisconsin state statute; federal trademark is pending. 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. 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. 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.

Design and production by Joe Leschisin, Kella Design www.kelladesign.com

WRA Announces Largest Statewide and Regional Companies to Serve on the 2013-2014 Board of Directors In accordance with the WRA bylaws, the size of the three largest statewide companies and seven regional companies shall be determined by counting the number of company employees who are members of the WRA according to the membership records as of February 28 of that year. The following companies will be represented on the 2013-2014 WRA board of directors: Largest Statewide Companies • Shorewest REALTORS® – Milwaukee • Coldwell Banker The Real Estate Group Appleton • First Weber Group REALTORS® - Milwaukee Largest Regional Companies Region One Keefe Real Estate – Lake Geneva Region Two First Weber Group, Inc. – Madison Region Three Coldwell Banker Residential – Mequon Region Four Adashun Jones, Inc. – Fond du Lac Region Five First Weber Group Northern Wisconsin – Wausau

Region Six Edina Realty, Inc. – Eau Claire Region Seven Century 21 Rautmann/Schils – Sheboygan Regional Representative Openings The number of openings for regional representative is determined by the membership as of February 28, 2013. The following regions have openings. The application deadline is March 15, 2013. Region One: Region Two: Region Three: Region Four: Region Five: Region Six Region Seven:

0 0 1 1 1 1 0

2013 GRI Scholarship Recipients The Wisconsin REALTORS® Foundation would like to congratulate the following 2013 GRI Scholarship recipients: Al Petri Gabriell Laughlin — Coldwell Banker The Real Estate Group, Greenville Arline Beyer Thomas Pehowski — Coldwell Banker Residential Brokerage, Mequon Darwin Scoon Laura Lahti — Century 21 Affiliated, Sun Prairie Krista Shortreed — First Weber Group, Janesville Don Hovde Charles Awosika — First Weber REALTORS®, Brookfield Michael Knautz — Clayton Real Estate and Auction Service, Platteville

Otto Bytof — REALTORS® Association of Northeast Wisconsin Kevin Bedat-Fitzpatrick — Coldwell Banker The Real Estate Group, Appleton Otto Bytof — Coldwell Banker The Real Estate Group Lisa Ripley — Coldwell Banker The Real Estate Group, Appleton Ozaukee REALTORS® — Shirley Hanson No recipient Washington Board No Recipient Waupaca Shawano Shawn Thorne — Century 21 Country Aire Realty, Shawano Western Wisconsin — Sue Alt No Recipient

WIREALESTATEMAG • MARCH 2013

Real Estate Wisconsin

membership resources

Exclusive Member Benefits We wish you success in your career and hope you take advantage of the many benefits we offer.

Does Health Care Reform Affect Me?

Insurance companies expect to offer plans in and out of the Exchange with different pricing and benefits. • Exchanges are state-based and can be run by the state, by the federal government if the state does not establish one, or by a joint state-federal effort. Wisconsin’s Exchange will initially be run by the federal government. • The Exchange is an online comparison of the standard plans available, such as Bronze, Silver, Gold and Platinum, as well as a calculation to determine whether you are eligible for a subsidy. • Subsidies are available on a sliding scale for people who earn less than 400% of the federal poverty level. For an individual earning less than $44,680, a subsidy may be available.

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WRA members currently enrolled in the UPS Savings Program must re-enroll to take advantage of this new exclusive offer. Just take a few minutes to fill out the short application form available at www.savewithups.com/enroll. To enroll, use promo code NCR308. If you have any questions, call UPS at 800-325-7000.

WIREALESTATEMAG • MARCH 2013

Long-Distance Program

• If you are eligible for a subsidy, REGIT will assist you in applying online at the Exchange for the plan and carrier of your choice and the premium subsidy will be calculated. • Open enrollment for 2014 is expanded this year only from October 1, 2013 through March 31, 2014. If you do not enroll by March 31, 2014, you will not be eligible to enroll until October 2014 for a 2015 effective date.

t certainly does have an impact on you! Although the Affordable Care Act, known as “Obamacare,” isn’t effective until January 2014, changes begin in 2013. This is especially true for employers, but individuals also should be aware of what is to come. Below are highlights of the act: • The purpose of the legislation is to expand coverage to millions of uninsured Americans. Everyone will be offered coverage regardless of health conditions and with no pre-existing condition limitations. Carriers cannot increase rates based on your health status. • All individuals must have health insurance or be subject to penalties. Penalties, if applicable, will be assessed on tax returns. • Consumers can purchase coverage in an “Exchange” or outside of the Exchange.

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Health, Dental & Life Insurance Save on health insurance premiums with REGIT Inc. without compromising coverage. REGIT’s program provides access to customizable insurance plans to meet your needs. Call 800537-9786 or visit www.regitinc.com.

Website Development Interested in creating your own website? WRA members can design and maintain their own websites through Real Estate Home Pages. Software templates and easy-to-use tools for adding images and formatting text provide a professional look, usually only attained by a graphic artist or Web designer. Visit www. realestatehomepages.com for more information. You’ll be amazed at how easy and inexpensive having a website can be!

Starting this October, REGIT, the WRA’s insurance partner, can assist Wisconsin REALTORS® with coverage in or out of the Exchange. Contact REGIT at 800-537-9786 with any questions and to speak with a licensed professional who can discuss the changes impacting you.

Errors & Omissions Program Pearl Insurance, the WRA-endorsed carrier for errors and omissions (E&O) insurance, offers insurance designed specifically for the real estate industry and the risks you face. Pearl provides coverage for claims of regulatory complaints, personal injury, lockbox liability or allegations of discrimination. For more information and a free quote, call 800-2898170 or visit www.pearlinsurance.com. If you have questions about the WRA member benefits, contact Debbie Thacker at dthacker@wra.org or by calling 800-279-1972.

wisconsin monthly housing report by David Clark

January Home Sales Robust as Median Prices Increase WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY — january 2013 Statewide JAN-2013 JAN-2012 % Change YTD-2013 YTD-2012 % Change New Listings 8,263 8,499 -2.8% 8,263 8,499 -2.8% Closed Sales 3,446 2,912 18.3% 3,446 2,912 18.3% Median Sales Prices $123,000 $119,000 3.4% $123,000 $119,000 3.4% Median Price Existing Home Sales Region JAN-2013 JAN-2012 % Change JAN-2013 JAN-2012 % Change Southeast $120,000 $124,000 -3.2% 1,279 1,086 17.8% South Central $155,450 $137,000 13.5% 686 583 17.7% West $128,500 $124,900 2.9% 354 289 22.5% Northeast $113,000 $110,000 2.7% 571 523 9.2% Central $105,000 $98,250 6.9% 223 174 28.2% North $95,000 $90,000 5.6% 333 253 31.6%

View Online View all of the housing statistics at www.wra.org/housingstatistics.

“We have seen fairly consistent upward movements in median prices since last spring, and that trend continues as we move into 2013,” said WRA President and CEO, Michael Theo. Median prices rose just over 1 percent for all of 2012, and the median price appreciation over the last two months has been well above that pace. In fact, median prices have grown in 10 of the last 11 months, relative to the same month in the previous year. This trend is not surprising given that the state has seen a steady reduction in unsold inventory; 45,000 single-family units are available statewide, which represents 8.5 months of inventory. “We do think that inventories will stabilize in the six- to seven-month range as new home construction begins to pick up,” said Theo. The U.S. Bureau of the Census shows that Wisconsin single-family housing starts for 2012 increased 16 percent over the 2011 level. “The good news is that even with minimal growth in family income over the past year, affordability remains high due primarily to very low mortgage rates,” said

Theo. The Wisconsin Housing Affordability Index measures the percentage of a median-priced home that a buyer with the median family income can afford at current mortgage rates. The index jumped to 291 in January 2013 compared to a modified 269 in January 2012. With declining inventories putting modest upward pressure on prices, affordability will likely fall this year even if the Fed maintains mortgage rates in the range of 3.5 percent to 4 percent during 2013. Moreover, the state economy is showing some signs of improvement, with the seasonally adjusted unemployment rate holding steady at 6.6 percent during the last two months of 2012. This is well below the national rate that inched up to 7.9 percent in January. “The bottom line is that this is an excellent time to have an experienced REALTOR® help you find the best values in this tightening housing market,” said Theo.

David Clark, Ph.D., is a professor of economics at Marquette University and serves as a consultant to the WRA in the analysis of existing home sales data. For more information, contact Clark at C3 Statistical Solutions, 414-803-6537.

WIREALESTATEMAG • MARCH 2013

lthough January is typically a slow month for home sales in Wisconsin, the 19-month trend of double-digit growth continued last month as existing homes sales grew 18.3 percent compared to January 2012. In addition, median home prices also increased 3.4 percent to $123,000 over that same period. “The month of January is typically the low-water mark in terms of Wisconsin home sales volume,” said Renny Diedrich, Chairman of the WRA Board of Directors. She noted that January usually accounts for just under 5 percent of the annual sales of existing homes in the state. “To see existing home sales continue the strong pace established in 2012 bodes well for the spring when the market heats up,” said Diedrich. All regions in the state were up in January. The strongest growth was seen in the North and Central regions, where sales grew at 31.6 and 28.2 percent respectively, as well as the West region, which was up 22.5 percent. “It’s interesting that the fastest-growing regions are areas with strong vacation home markets since these markets were especially hard hit during the recession,” said Diedrich. Also strong were the Southeast and South Central regions, where sales were up slightly less than 18 percent, and the Northeast region, which grew at a solid pace of 9.2 percent over the period.

feature

REALTOR

Code of Ethics Begins Its 2nd Century by Kevin King photos courtesy of the National Association of REALTORS® archives

In 1908, a group of 120 men from across the United States and Canada gathered in Chicago to organize the National Association of Real Estate Exchanges, later to become the National Association of Real Estate Boards in 1916 and finally the National Association of REALTORS® in 1974. This was not the first attempt at a national association, but the one that ultimately survived the test of time. The initial membership numbered 1646. The membership fee was $50 and annual dues set at $1 per year.

WIREALESTATEMAG • MARCH 2013

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t may be helpful to understand the real estate environment at the turn of the 20th century. Land had become a valuable commodity as a growing middle class began to desire homeownership. Although many trustworthy, respectable men wanted to help the public — keep in mind that women at this time had yet to make their mark in this area — there were others willing to take advantage of the fact that real estate brokerage was essentially unregulated, as this era preceded the adoption of regulatory licensing systems. Early 20th century real estate was an environment marked by the fraudulent subdivision, multiple first mortgages, and other get-rich-quick

schemes. One egregious example is Peter van Vissingen, himself from Chicago. In the very year that the National Association of Real Estate Exchanges (NAREE) was formed, van Vissingen was charged with forging mortgage documents and title deeds. He subsequently confessed to swindling 25 people out of $700,000 over 18 years; later, he was found to have defrauded more than 100 people totally more than $2 million. An interesting sidenote to this case: apparently fearing for his safety once charges became public, van Vissingen requested a speedy trial. And in what has to be some sort of record, he was arrested at 1:30 p.m., brought before the court and in jail by 5:15 p.m. that very afternoon. NAREE’s objective was to adopt a uniform method of doing business.

As Edward A. Halsey, chairman of the national organization committee stated, “We propose, if we can, to wipe out the riffraff that brings this business into disrepute.” To that end, the new association created standing committees on financing and auditing, taxation, state and municipal legislation, organization of new local boards and a code of ethics. Five years later, the anxiously anticipated report of the Committee on the Code of Ethics was brought before the board of directors during NAREE’s sixth annual convention in Winnipeg. Edward S. Judd, 1912 NAREE president, put forward the following motion: “The motion is for the adoption of the Rules of Conduct and that a recommendation be sent to the local boards that they be adopted as much as possible and they be taken as the Code of Ethics of the national association,

Adoption of the Code By adopting the Rules of Conduct, the association became the first business — with the exception of a now-defunct association of printers — outside of medicine, engineering and law to adopt a code of ethics. Local boards initially were asked to voluntarily adopt the rules; however mandatory adoption was made a condition of membership in 1924. In 1978, William D. North, former executive vice president and general counsel of the National Association of REALTORS® (NAR), called the Code an “unusual Gift of Vision: the vision of those who dreamed that the business of real estate could become a profession, the vision of those who believed that the search for the highest and best use of the land required the highest and best measures of professional responsibility, and the vision of those who recognized private ownership of the land

as indispensable to political democracy and a free and prosperous citizenry.” He also noted that the unifying rationale, which continues in today’s version, is the concept of “Service to the Public.” It is interesting to look at the language of the first Rules of Conduct, which consisted of 23 statements divided into Duties to Clients and Duties to Other Brokers. For example, under Duties to Clients, we find the following: •

•

Be absolutely honest, truthful, faithful and efficient … and [your client] is entitled to the best service the real estate man can give — his information, talent, time, services, loyalty, confidence and fidelity. (Well said.) Be conservative in giving advice and, where not well posted, refrain from giving opinion of value. (Some may wish this was still part of the Code.) Do not depreciate the price of property unless the price is too high; ask that the price be reasonable, and tell the owner that it must be

•

so if he expects his agent to make an attempt to sell it. (Wouldn’t it be fun to be able to say this to the seller with the inflated price?) Obtain sole agency, in writing, if it is property worthy of a special effort to sell. (Even in 1913, the concept of exclusive agency as being in the best interests of the parties was understood.) Do not give special information to inquiries over the telephone, or otherwise, unless they are willing to give their names and addresses. Let them understand that the broker deals in the open and expects them to do likewise. (I’m not sure how many telephones existed then, but I love the statement “the broker deals in the open and expects them to do likewise”.) An agent should always exact the regular real estate commission of the association of which he is a member, and always give his client to understand at the beginning that he is entitled to such and

WIREALESTATEMAG • MARCH 2013

and their adoption [is] recommended everywhere as far as possible.” The motion was carried by voice vote.

expects it. (Associations are no longer allowed legally to establish commissions, but the second part of this statement is still certainly true today.) Under the section Duties of Other Brokers, brokers agree among other things: • An agent should respect the listings of his brother agent, and cooperate with him to sell, provided the other agent has the most suitable place. (100 years ago, brokers believed in the value of cooperating with each other in the best interests of the public they serve.) • Always be loyal, square, frank and earnest in the matters that require cooperation of brokers, and always speak kindly of competitors, refusing to pass judgment on others from hearsay evidence. (While we use different words today, I’m not certain that we state it any better.) • Advertise nothing but facts … (Perfect — enough said.) • If an agent cannot efficiently handle a proposition, he should refer the matter to some competitor instead. (The concept of competence was recognized in 1913.) • Invoke friendly arbitrations by the Real Estate Association rather than through the court of law, in settling differences with other agents. (The commitment to peer review as being advantageous over submission to the courts was supported even then.)

WIREALESTATEMAG • MARCH 2013

Amendments over the years

The Code of Ethics is described as a “living document” — a document that preserves its significance, relevance and usefulness despite the passage of time. It was meant to evolve, and as such has been amended over the years. Early amendments took place in 1914, 1915, 1924 and 1928; an amendment prohibiting “horseback appraisals” — known as “drive-by appraisals” today — was added. One of the significant changes in 1924 was the addition of the Preamble to the Code. This original language has stood the test of time, with the exception of one brief period from 1955 to 1961. Subsequent amendments moved the former aspirational

Articles 1-6 of the Code into the Preamble and added, among others, obligations to share professional knowledge and maintain the spirit of cooperation among real estate professionals. After the 1928 amendments, the Code was declared “complete” and was not amended again until 1950. A survey of members in 1948 found that the Code was dated and no longer a source of pride. Therefore, the Professional Standards Committee, created in 1946, began its efforts to update the Code. However, proposed revisions were delayed as an antitrust action by the federal government required the Association’s immediate attention. The antitrust action centered on the then Article 9, which required REALTORS® to follow local board’s published real estate commissions and fees. The U.S. Justice Department alleged such rate setting was anticompetitive. NAR argued that this provision protected consumers from paying unfair and arbitrary fees. In 1950, the U.S. Supreme Court agreed with the Justice Department and declared Article 9 illegal, and the article was subsequently removed from the Code.

Today’s REALTOR® Code of Ethics The Code was then amended on 10 different occasions between 1952 and 1987. The Code has received amendments every year between 1989 and 2012. The goal of each revision is to refine the principles obligating REALTORS® to the highest and best standards of personal and professional conduct. To keep pace with new business practices today, notable changes in recent years include: • The original Code followed the convention of using male pronouns and other gender-specific language. In 1989, the Code underwent revision to gender-neutral language. • Under Duties to Clients and Customers, amendments were made to recognize the growth in buyer agency as well as the legally recognized nonagency relationships practiced in several states. • The importance of presenting a “true picture” exists not only in advertising but in marketing and representations to the public as well. This requires that your company name is readily apparent in your real estate advertising, which

includes the Internet, as well as in social media, blogging and tweeting. An exception is made to permit a link to a display that includes the required disclosures where the disclosure may not be practical in an electronic display of limited information, such as thumbnails, text messages or tweets. • Without question, it is unethical to use domain names that present less than a true picture. In addition, it is unethical to even register a domain name that, if used, would present less than a true picture. • It is unethical for you to present content developed by others in your advertising, marketing or other representations — whether in print, electronic or other media — without either appropriate attribution or permission. • The obligation to not knowingly or recklessly make false or misleading statements about other real estate professionals includes the duty to monitor your blogs, Facebook walls/ pages and other electronic media for comments made by others. Further, you have an obligation to immediately remove such statements or to publish a clarification once you know the information is false or misleading. REALTORS® in Wisconsin can be particularly proud of a change that went into effect on January 1, 2011. In 1974, Article 10 was created to bring the Code in line with the federal fair housing and employment laws. A revision in 1989 incorporated the federal amendments to the Fair Housing Act dealing with handicap and familial status. In 2010, at the request of many but initiated in large part by the WRA and its Cultural Diversity in Housing Committee,

the NAR board of directors approved a recommendation from its Professional Standards Committee to go beyond federal law and include in Article 10 a requirement for equal professional service and employment opportunity regardless of sexual orientation. Today, the Code consists of 17 Articles divided into three categories: (1) Duties to Clients and Customers, (2) Duties to the Public and (3) Duties to REALTORS®. In addition, there are 71 supporting Standards of Practice and 131 explanatory Case Interpretations. In the end, the Code is much more than a bunch of rules. It embodies the standards of conduct by which REALTORS® can model their behavior. It is our philosophical values as REALTORS®. As Mr. North concluded in his article The REALTOR® Code of Ethics — A Gift of Vision, “To REALTORS®, the Code of Ethics offers the lessons of hindsight, the guidance of foresight, and the understanding of insight — A Rare Gift of Vision.” Note: I would like to acknowledge and thank NAR for its wonderful resources under the Code of Ethics Centennial on www.realtor.org used in preparation of this article. Kevin King is the Executive Vice President of the REALTORS® Association of South Central Wisconsin and the South Central Wisconsin MLS. He is a member of the NAR Professional Standards Committee and formerly held the position of General Counsel for the WRA.

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WIREALESTATEMAG • MARCH 2013

More than financing–

legal by Cori Lamont

Risky Behavior

WIREALESTATEMAG • MARCH 2013

The consequence of pushing the limits of the law and Code of Ethics

As REALTORS®, we must follow the law, the Code of Ethics, company policy and the ethics that we impose upon ourselves as professionals. In general it could be said that the laws and the Code of Ethics create the minimum standard expected of REALTORS®. However, most REALTORS® rise above the minimum and choose to operate at a higher level.

or those who choose to practice just before the intersection of the minimum standard and breaking the law, it is a risk. Even though you may not be this REALTOR®, the problem is that you are at risk when involved with agents who choose to practice in this manner.

“I’m not touching you!” Personally, I have a constant and a specific scenario that comes to mind when discussing this group of individuals who practice on the edge. In this scenario, I envision two children sitting in the backseat of the family truckster as it is screaming down the interstate, and mom or dad has finally said “enough is enough” and directed the two backseat passengers to leave the other alone, to stop tormenting each other and to keep hands to themselves. And as the moments pass, one of the backseat passengers begins the infamous torture of the other that includes the taunt, “I’m not touching you, I’m not touching you.”

Yes, this is what I think of when I picture a REALTOR® operating at the bare minimum of what is required by the law and the Code of Ethics — it’s an image of someone attempting to find a loophole in the system that allows them to function without breaking the rules. And for the REALTOR® who does not practice in such a manner, the involvement in a transaction with someone who does can be perilous. To be in a transaction with someone choosing to function at the lowest level of the law and required by the Code of Ethics creates uncertainty for the agent who has chosen to go above and beyond. While not all activities are illegal or violate the Code, certain behaviors may not be ethical. But what does that mean to the cooperating agent? How do you balance participating in the transaction and providing public services without compromising your ethics? There is no clear answer, however there are a few tips. 1. Discuss the issue with your broker. 2. Have your broker communicate with the broker of the agent to inform them

I. Respect for the Public

6. 7. 8. 9. 10. 11.

Pathways to Professionalism As the statements goes, it takes years to build up trust, and only seconds to destroy it. The Professional Conduct Working Group of the Professional Standards Committee of the National Association of REALTORS® (NAR) created a list, known as the Pathways to Professionalism, that includes professional courtesy and etiquette not addressed in the Code of Ethics. See the side bar for the Pathways to Professionalism. In 2013, NAR released a video and companion brochure entitled, “A Pathway to Professionalism: Respect Starts Here.” The video and brochure contain six timeless tips to maintain high levels of professionalism: 1. Follow the “Golden Rule.” 2. Show courtesy and respect for everyone. 3. Communicate with all parties in a timely fashion. 4. Present a professional appearance at all times. 5. Be aware of — and meet — all deadlines. 6. Be aware of and respectful of all cultural differences. The full video may be viewed at www. realtor.org/professionalism.

12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

II. Respect for Property 1. 2. 3. 4. 5. 6.

Filing a complaint And when the metaphoric bump in the road hits and the other REALTOR® finally breaks the law or Code and the broker-to-broker communication has either fallen on deaf ears or has not rectified the issue, there are options. When anyone wishes to make a complaint against a REALTOR®, complaints may be filed with the local REALTOR® association and the Wisconsin Department of Safety and Professional Services (DSPS). The following provides a brief summary of each. Local REALTOR® Association If a REALTOR® has violated the Code, a complaint may be filed with the local REALTOR® association. Boards and associations are responsible for

Follow the “Golden Rule”: Do unto other as you would have them do unto you. Respond promptly to inquiries and requests for information. Schedule appointments and showings as far in advance as possible. Call if you are delayed or must cancel an appointment or showing. If a prospective buyer decides not to view an occupied home, promptly explain the situation to the listing broker or the occupant. Communicate with all parties in a timely fashion. When entering a property ensure that unexpected situations, such as pets, are handled appropriately. Leave your business card if not prohibited by local rules. Never criticize property in the presence of the occupant. Inform occupants that you are leaving after showings. When showing an occupied home, always ring the doorbell or knock — and announce yourself loudly before entering. Knock and announce yourself loudly before entering any closed room. Present a professional appearance at all times; dress appropriately and drive a clean car. If occupants are home during showings, ask their permission before using the telephone or bathroom. Encourage the clients of other brokers to direct questions to their agent or representative. Communicate clearly; don’t use jargon or slang that may not be readily understood. Be aware of and respect cultural differences. Show courtesy and respect to everyone. Be aware of — and meet — all deadlines. Promise only what you can deliver — and keep your promises. Identify your REALTOR® and your professional status in contacts with the public. Do not tell people what you think — tell them what you know. Be responsible for everyone you allow to enter listed property. Never allow buyers to enter listed property unaccompanied. When showing property, keep all members of the group together. Never allow unaccompanied access to property without permission. Enter property only with permission even if you have a lockbox key or combination. When the occupant is absent, leave the property as you found it with lights, heating, cooling, drapes and more. If you think something is amiss, such as possible vandalism, contact the listing broker immediately. Be considerate of the seller’s property. Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave the house as you found it unless instructed otherwise. Use sidewalks; if weather is bad, take off shoes and boots inside property.

III. Respect for Peers 1. 2. 3.

Identify your REALTOR® and professional status in all contacts with other REALTORS®. Respond to other agents’ calls, faxes and e-mails promptly and courteously. Be aware that large electronic files with attachments or lengthy faxes may be a burden on recipients. 4. Notify the listing broker if there appears to be inaccurate information on the listing. 5. Share important information about a property, including the presence of pets, security systems, and whether sellers will be present during the showing. 6. Show courtesy, trust and respect to other real estate professionals. 7. Avoid the inappropriate use of endearments or other denigrating language. 8. Do not prospect at other REALTORS®’ open houses or similar events. 9. Return keys promptly. 10. Carefully replace keys in the lockbox after showings. 11. To be successful in the business, mutual respect is essential. 12. Real estate is a reputation business. What you do today may affect your reputation — and business — for years to come.

WIREALESTATEMAG • MARCH 2013

of the risky behavior. Broker-to-broker communication often helps in day-today practice as a professional courtesy to highlight a behavior of an agent that is not aboveboard in local practice. Maintain your personal level of professionalism.

1. 2. 3. 4. 5.

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enforcing the Code. The Code imposes duties above and in addition to those imposed by law or regulation that apply only to real estate professionals to become REALTORS®. Boards and associations determine if the Code has been violated, not the law, and therefore may discipline for violating the Code, not the law. A complaint against a REALTOR®: • Must be filed 180 days from the time a complainant knew or reasonably should have known that the potentially unethical conduct took place. • The complaint should include a narrative describing the circumstances that lead to the alleged violation and must cite one or more articles of the Code of Ethics deemed to have been violated but may include Standards of Practice in support. • Complaints are reviewed by the Grievance Committee. Complainants have the ultimate burden of proving that the Code has been violated. Keep in mind that the hearing panel cannot deem an article of the Code violated unless it was included in the complaint.

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DSPS A copy of the DSPS complaint form may be obtained at www.wra.org/dspscomplaint. • Stage 1 — Intake: A complaint is received in the Division of Legal Services and Compliance (DLSC) and processed. The complaint and related information are screened by Board Screening Panels and DLSC staff to determine if an investigation is warranted. Complaints that do not warrant investigation are closed, and those that appear to have merit or require further investigation are identified for investigative action and a case is opened. • Stage 2 — Investigation: The case is assigned to the DLSC investigator and attorney to develop an investigative plan. The investigative staff gathers necessary evidence and makes contacts with witnesses as needed. The case advisor is consulted on issues requiring professional expertise. The results of the investigation are provided to and discussed with the case advisor. Cases that do not warrant professional discipline are closed, while cases with violations proceed to the next stage for legal action. • Stage 3 — Legal action: DLSC compliance attorneys review the results of the investigation and pursue disciplinary action when appropriate. Cases may resolve by means of stipulated agreements, informal settlement conferences or administrative warnings. The case advisor will be asked for assistance on matters involving professional expertise and for their opinion on appropriate case resolution. • Stage 4 — Hearing: A formal legal process results if no satisfactory resolution is available at the Legal Action stage. DLSC attorney litigates the case before an administrative law judge (ALJ). The ALJ issues a proposed decision that is reviewed by the credentialing board. If a violation is found, discipline may be imposed. Disciplinary orders may include reprimand, limitation, suspension and revocation. And while the practice of being almost illegal or almost a violation of the Code does not break the law or violate the Code, the court of public opinion will be the judge and jury. While the memory of the public is not always long for certain egregious behavior, the public tends to have a long and vivid memory about the lack of professionalism in the single-largest transaction of their lives. A REALTOR® is only as good as his or her reputation. Therefore, continue to honor your personal standards of ethics and professionalism. And yes, there will be a bump, a swerve or a stop that will prove that dancing around the law and the Code of Ethics taunting “I’m not touching you, I’m not touching you” comes with consequence. Cori Lamont is Director of Regulatory Affairs for the WRA.

by Debbi Conrad

Professionalism in the Appraiser World Cooperation between professionals reaps optimal results

Professionalism in the appraisal world Prior to the 1990s, lenders and appraisers didn’t have a cohesive set of rules and regulations to follow. The Financial Institutions Reform Recovery and Enforcement Act (FIRREA) was enacted in 1990 to protect federal financial and public policy interests in real estaterelated transactions by requiring that real estate appraisals in federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct is subject to effective supervision. FIRREA established uniform federal guidance for appraisers who are charged with reviewing real estate purchase contracts, inspecting properties and providing opinions of value so that buyers can be approved for their purchase loans. The Uniform Standards of Professional Appraisal Practice (USPAP) was authorized by Congress in 1989 and adopted by the Appraisal Standards Board of The Appraisal Foundation as the minimum performance standards for appraisal practice in the United States. USPAP provides details on what an appraiser must

consider to arrive at a credible opinion of value. FIRREA recognizes USPAP as the generally accepted appraisal standards and requires USPAP compliance for appraisers in federally related transactions. State appraiser boards and regulatory agencies, such as the Wisconsin Real Estate Appraisers Board and the Department of Safety and Professional Services (DSPS), mandate appraiser compliance with USPAP. Enforcement of USPAP appraisal standards is provided by the state appraiser regulatory agencies including the DSPS.

What does USPAP provide? The 80 pages in USPAP contain complex and lengthy rules and standards pertaining to the development of an appraisal and the reporting of that value opinion to the client.

How does USPAP address the problem areas that brokers encounter? Brokers sometimes express concern with the appraisals performed for lenders in purchase transactions. The parties may be unhappy because the appraised value is not what was hoped. In such scenarios, the appraiser’s job is to provide an opinion of value, supported by legitimate reasoning and analysis, expressing market value — what a typical buyer would pay for the property in that market area. As professionals, REALTORS® should stop to consider whether an appraisal causing dissatisfaction simply reflects current market conditions or is the result of other factors.

Excerpts from USPAP Within the ETHICS RULE, the Conduct section provides, “An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests. An appraiser: •

Must not perform an assignment with bias;

•

Must not advocate the cause or interest of any party or issue;

•

Must not accept an assignment that includes the reporting of predetermined opinions and conclusions; …”

The COMPETENCY RULE provides, “An appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to perform the assignment; or (3) decline or withdraw from the assignment.” The comments to this section state: “Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method.” STANDARD 1: REAL PROPERTY APPRAISAL, DEVELOPMENT provides, “In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal.”

WIREALESTATEMAG • MARCH 2013

s this magazine issue examines professionalism and public perceptions of real estate practitioners, the focus is rightfully on real estate brokers and agents. But we should not neglect the appraisers in our midst. Not only are many appraisers REALTORS® and subject to the same REALTOR® Code of Ethics, but appraisers also have additional ethical rules and standards of professionalism they must observe. The working relationship between brokers and appraisers should reflect the high standards of conduct each profession aspires to.

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Why should the agent provide a copy of the offer to purchase to the appraiser? Won’t they just target the contract price then? Shouldn’t they arrive at a value independently? A contract purchase price is a good indicator of the property’s value, and it may be logical and reasonable for an appraiser to conclude that they are the same. However, this is not always the case. In some situations, an offer to purchase price will exceed what is typical in the marketplace, while in others, it may be less. While the price in an offer is a significant piece of market data, it must not become the target in an appraisal assignment. Instead, competent analysis of relevant and credible market data must serve as the basis for the market value conclusion. If an appraiser consistently finds that the contract price equals market value, the appraiser’s impartiality, independence and objectivity may be called into question under the USPAP ETHICS RULE. Appraisers working for appraisal management companies are sometimes asked to perform appraisal assignments outside the market areas they are familiar with. The assignments also require quick

turnarounds, such as 48 hours, which does not allow enough time to research the local market. Should appraisers accept such assignments? The COMPETENCY RULE requires an appraiser to notify the client if the appraiser lacks the necessary competency before accepting the assignment. In this case, the appraiser is concerned with his geographical competency. If proceeding, the appraiser must take steps to become competent and report those measures in the appraisal report. The appraiser may affiliate with a qualified local appraiser or spend enough time in the market area to attain geographic competency, or decline the assignment. In this case, the 48 hours would appear to preclude the appraiser researching the market area and conducting the appraisal. Such circumstances are also addressed in the SCOPE OF WORK RULE in USPAP, which indicates that an appraiser should withdraw from the assignment if the appraiser begins an assignment but then finds the time frame is too short for the development of a credible appraisal. How can a REALTOR® get questions on a finished appraisal report answered by the appraiser? Generally, the appraiser may only discuss the report with the client, or the appraiser must have authorization from the client to discuss a completed appraisal report with another person. If the appraisal has been completed, it may be best to speak with the lender and ask them to raise any concerns.

Professional pointers for working with appraisers Although it may be a bit challenging to address concerns after the appraisal report has been issued, real estate agents may converse with appraisers, optimally before or during the property inspection. This is the agent’s opportunity to provide information about the property, indicate how the list price or offer price was arrived at, and provide comparables that may be helpful to the appraiser — in a friendly, professional manner. Real estate agents may:

WIREALESTATEMAG • MARCH 2013

2. 3.

Meet appraisers when they arrive at the property for inspection or, if that is not possible, be available by phone or e-mail. Show them unique features, but keep the presentation factual. Agents can talk to appraisers as long as they are not pressuring them to arrive at a certain value. Provide a detailed list of upgrades, with costs if possible, and predominant features. Provide any CMA, comps or other research demonstrating how the price was set. Include any sketch or other record of the measurements used. Share this information on the telephone or by e-mail if a personal meeting is not possible. The appraisers might or might not use this information but at least it was made available. Provide information regarding offer activity.

“Meet appraisers when they arrive at the property for inspection. Show them unique features, but keep the presentation factual.”

Document any discrepancies with the assessor’s data. 6. Share hyper-local insight and resources regarding the neighborhood or market area that may contribute to overall value. Brokers and agents should always proceed from a respectful, educational standpoint. Be courteous and pleasant, and be sure to return calls and thoroughly answer any questions. Agents may offer information but should never tell appraisers “here are your comps” or tell them how to do their jobs.

Distribution of information Can brokers share information on pending sales (sale price) with appraisers? The general rule is that real estate licensees must maintain the terms and conditions of the offer to purchase as confidential. However, in the new Distribution of Information section of the updated offers to purchase, the parties grant brokers the authority to share what would otherwise be confidential information so that appraisers can obtain the information they need to comply with various regulatory and client-imposed standards and provide a more accurate valuation. The appraisers may be looking for information regarding listings,

pending offers, concessions and other pre-closing data. Upon inquiry, a broker may provide pending sale information to appraisers researching comparable sales, including sales prices for pending sales. This information helps appraisers make proper adjustments to comps and arrive at better, more accurate appraisals. The term “REALTOR®” has come to connote competency, fairness and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. Both brokers and appraisers should show respect for property, the public and their peers, and conduct business with the utmost respect and professionalism.

Wisconsin Real Estate Magazine: www. wra.org/WREM/Sept07/SalesConcessions. Appraisal Foundation information pamphlets: •

“A Guide to Understanding a Residential Appraisal” provides consumers an overview of the residential appraisal and how it relates to the homebuying process: appraisalfoundation. sharefile.com/download. aspx?id=scfe7be1162c4358b#.

•

“Appraisers, Appraisals & You: A Lender’s Guide to USPAP” provides

Resources USPAP online: www.uspap.org. “Can You Head Off Inaccurate Appraisals?” NAR blog, Robert Freedman, November 12, 2011: speakingofrealestate.blogs. realtor.org/2011/11/12/can-you-head-offinaccurate-appraisals. “How to Challenge that Low Appraisal” Michele Lerner of HSH.com: realestate.msn.com/how-to-challenge-thatlow-appraisal. “Are You Reporting Sales Concessions?” in the September 2007 edition of the

insight to lenders in working with appraisers as well as an overview of the entire appraisal process: appraisalfoundation. sharefile.com/download. aspx?id=s5d634c9fee34c6da#. NAR’s “A Pathway to Professionalism: Respect Starts Here”: www.realtor.org/professionalism.

Debbi Conrad is Senior Attorney and Director

WIREALESTATEMAG • MARCH 2013

of Legal Affairs for the WRA.

best of legal hotline by Tracy Rucka

REALTOR® Professionalism and the Code of Ethics The Code applies to personal transactions Standard of Practice 1-1 provides that “REALTORS®, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics. (Amended 1/93)”

WIREALESTATEMAG • MARCH 2013

The Code and personal transactions

Standard of Practice 1-1 provides that “REALTORS®, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics. (Amended 1/93)”

Personal transactions and advertising An agent is running an ad for rental on a property, but the name of the

broker and company are not in the ad. Does this violate the Code of Ethics? Article 12 of the Code of Ethics states that REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS® shall also ensure that their professional status — for example, broker, appraiser or property manager — or status as REALTORS® is clearly identifiable in any such advertising. In addition, Standard of Practice 12-6 provides that “REALTORS®, when advertising unlisted real property for sale/ lease in which they have an ownership interest, shall disclose their status as both

owners/landlords and as REALTORS® or real estate licensees. (Amended 1/93)”

Personal transactions and disclosure of interest An agent, personally and not in an LLC, owns vacant land and plans to sell. What disclosure must be made about the agent’s licensee status and property ownership? Anytime a licensee has an ownership interest in property, the licensee should refer to company policy about such proposed sales transactions. Companies have different policies about how to structure such transactions to comply

with license law, comply with the Code, avoid liability and assure compliance with errors and omissions insurance coverage. Article 4 of the Code of Ethics provides, in relevant part that, “In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)” Standard of Practice 4-1 indicates that these written disclosures should be made before signing any contract. These provisions mirror the disclosure of interest rules in Wis. Admin. Code § REEB 24.05, which require a licensee who is the buyer or seller in a transaction to disclose the real estate license and obtain the prior written consent of all parties to the transaction. The REEB rules were recently updated to require the consent in the offer to purchase.

Respect other REALTORS®‘ relationships with clients The broker has a property under an Exclusive Right to Sell listing contract that does not expire until summer. Another REALTOR® contacted the seller with a letter discussing the benefits of listing with their company. The letter is addressed specifically to the sellers and does not include a disclaimer for the sellers to disregard the letter if the property is currently listed. Does this violate the Code of Ethics? What actions should the listing broker take? Article 16 provides, “REALTORS® shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other REALTORS® have with clients. (Amended 1/98)” However, Standard of Practice 16-2 does not preclude REALTORS® from making general announcements to prospective clients describing their services and availability even though recipients may have entered into agency agreements or other exclusive relationships with another REALTOR®. A general mailing or distribution addressed to all prospective clients in a given geographical area or in a given profession, business, club or organization, or other classification or group, is deemed “general” for purposes of this standard. If the mailing was part of a mass mailing and not targeted, there may be no violation of the Code of Ethics. The listing broker may wish to contact the agent and his or her broker regarding the fact that the seller received said letter and that the property is currently listed under an exclusive right to sell listing. While it is common practice to include a statement to any seller of a property to disregard the promotional material if their property is currently listed, it is not required under the law or by the Code.

Seller contacts broker for future listing The agent was called to the sellers’ home to discuss listing the home. Upon arrival, the agent discovered a “For Sale” sign from another MLS company. The sellers stated that the current contract expires at the end of the

month and the sellers do not want to extend the listing. May the agent enter into a listing to start next month? Yes, the new listing broker may enter into a listing that would begin next month. The second listing would be subject to the first broker’s rights with respect to the current listing based on listing protection or override rights it establishes with respect to properly qualified buyers. Pursuant to Article 16 of the Code of Ethics, a REALTOR® may not initiate contact with the client of another REALTOR®. However, if the seller contacts the REALTOR®, the REALTOR® may discuss terms upon which they may enter into a future listing contract. Standard of Practice 16-6 provides that, “When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. (Amended 1/98)”

The cooperating agent contacted the seller directly A REALTOR® from an out-of-town firm contacted the seller directly to show the property to a buyer who wanted to present an offer. The seller is not happy about this because she runs a business, and employees and clients have yet to know that the business is for sale. This out-of-town REALTOR® should contact the

WIREALESTATEMAG • MARCH 2013

Contacting another broker’s client

best of legal hotline

listing agent, correct? Was this unethical practice? Wis. Admin. Code § REEB 24.13(5) provides that licensees may not negotiate the sale of a property with the seller directly if the party has an unexpired written contract in connection with the real estate that grants another broker an exclusive right to sell. All negotiations shall be conducted with the listing broker, and not the owner, except with the consent of the listing broker or where the absence of the listing broker or other similar circumstances reasonably compels direct negotiation with the owner. If the other broker is also a REALTOR® member, then Article 16 and Standard of Practice 16-13 of the Code of Ethics may also apply. Standard of Practice 16-13 indicates that, “All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.”

Use of MLS to target another broker’s client Another agent in town sent a seller a letter about offering buyer agency services. The listing broker believes that other agents are not

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allowed to solicit another broker’s client. According to Standard of Practice 16-18, “REALTORS® shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer/ tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers. (Amended 1/02)” A broker visiting a neighborhood saw a property with two signs on the front lawn. How can one broker list for lease and one list for sale? Is this ethical? The sale and lease of property are two separate interests in real estate. In some cases the broker with the listing for sale may not provide property management or leasing services, so the seller may need to engage two different brokers for the two interests. Standard of Practice 16-3 provides that, “Article 16 does not preclude REALTORS® from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other brokers’ exclusive agreements. However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other REALTORS® to whom such offers to provide services may be made. (Amended 1/04)”

The Code and advertising “sold” properties Can the broker advertise homes sold last year that include another company’s listings? For example, another broker listed the property and the first broker sold it. Can the first broker do this? Can two companies both advertise it as “sold”? Standard of Practice 12-7 previously limited the use of the word “sold” in advertising to the listing broker, but now Standard of Practice 12-7 provides that, “REALTORS® who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have ‘sold’ the property. Prior to closing, a cooperating broker may post a ‘sold’ sign only with the consent of the listing broker.” The references to cooperating brokers in this standard include selling brokers (subagents) and buyer’s brokers. Accordingly, there may now be two different brokers claiming to have ‘sold’ the same property: the listing broker and the cooperating broker. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

Two-Day

ABR Course

APRIL 10-11, 2013

WRA Headquarters | Madison This two-day course serves as the core of the Accredited Buyer’s Representative (ABR) designation program, which is the benchmark of excellence in buyer representation. The goal of this course is to set the foundation of training, skills, and resources to help real estate professionals succeed in today’s marketplace as buyer’s representatives.

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March 18-19, 2013 I Wisconsin Dells www.wra.org/appraisalconference

Learn more at wra.org/abrinfo All courses approved for Wisconsin, Michigan and Minnesota appraiser CE as well as Wisconsin assessor CE.

education

Top-Notch Classroom Education Whether your goal is to become a real estate sales licensee, enhance your career with a prestigious designation, or renew your license with continuing education, this section offers you the key courses you will need.

Broker Price Opinion April 18, 2013 — Appleton Whether you are experienced at preparing broker price opinions or are new to the business, the course “BPOs: The Agent’s Role in the Valuation Process” will provide you with the resources and knowledge to reduce your risk and increase your opportunities. You’ll learn about the multiple uses of BPOs and what they can and cannot be used for, how to evaluate and minimize the risk of the valuation process, identify and use effective tools, and filter and select comparables to create professional and accurate BPOs. Visit www.wra. org/BPOR_overview for more. Those who complete the course will need to take a free webinar and pay a one-time fee to earn the BPOR certification. For additional information, visit www.bpor.org.

The BPO course counts as one elective course to be applied toward the ABR® designation.

Broker Pre-license Course March 18-21; April 2-5, 2013

WIREALESTATEMAG • MARCH 2013

The eight-day Broker Pre-license Course covers contracts, approved forms, trust accounts, escrow and closing statements, business management and marketing, finance and office management, personnel, business ethics and much more. Completing pre-license education and passing the real estate sales exam are prerequisites.

2-Day ABR Course April 10-11, 2013 — Madison Buying a home isn’t simple ... buyers need a REALTOR® with knowledge and expertise to represent them throughout a real estate transaction. Buyers need you! You’ll walk away from the ABR course with a foundation of training and skills to help you provide the same level of representation to buyers that sellers typically enjoy. Register online at www.wra.org/ABR_Overview.

CRS 201 March 12-13, 2013 Appleton, Eau Claire, Madison, Milwaukee

Completion of the Broker Pre-license Course, passing the exam and receiving the broker license fulfill the 2013-14 CE requirement.

Ready to step up your career, differentiate yourself, and increase earning potential? You can earn credits toward your CRS designation with the CRS 201 course. Can’t make it to Madison for the live course? No problem! Attend the same class via live classroom webcast at the remote course locations in Appleton, Eau Claire and Milwaukee.

For more information and to register, visit www.wra.org/Broker_Career.

Find your course location and register online at www.wra.org/CRS.

Real Estate Sales Pre-license

Appraisal CE

July 15-19; 22-24, 2013 WRA Headquarters — Madison To obtain a real estate license in the state of Wisconsin, you must first complete 72 hours of approved education courses, such as our sales pre-license course. Second, you must pass a state-administered exam. The WRA will offer an eight-day accelerated 72-hour sales program this summer at the WRA headquarters in Madison. For more information, visit www.wra.org/salespl.

March 18-19, 2013 — Wisconsin Dells Complete your 2012-13 appraisal CE credits at Appraisal Conference! All courses at this year’s conference have been approved for Wisconsin, Michigan and Minnesota appraiser CE as well as Wisconsin assessor CE. • 7-Hour National USPAP 2012-2013 Update • Appraising the Tough Ones (7 hrs) • Rules & Regulations – Myths and Facts (3.5 hrs) • Performing and Defending the Appraisal Review (PM) (3.5 hrs) • Loss Prevention for Real Estate Appraisers (7 hrs)

education

WRA Course Schedule Visit www.wra.org/CourseSchedule for full schedule and details. Conferences and Conventions Date March 18-19, 2013 March 20, 2013

Event/Course Appraisal Conference REALTOR® & Government Day

Location Wisconsin Dells Madison

Real Estate Continuing Education Date Course Location Price March 8, 2013 2013-2014 Electives B & D Madison $27 member / $35 non-member March 14, 2013 2013-2014 Electives A & C Madison $27 m / $35 nm March 20, 2013 2013-2014 Electives A & C Brookfield $27 m / $35 nm April 2, 2013 2013-2014 Course 2 Racine Call 262-884-7833 for pricing April 11, 2013 2013-2014 Course 1 Hudson 888-666-6566 May 2, 2013 2013-2014 Courses 1 & 2 Sturgeon Bay 920-743-9651 May 7, 2013 2013-2014 Course 3 Racine 262-884-7833 May 8, 2013 2013-2014 Course 2 Sheboygan 920-457-7908 2013-2014 CE Courses Courses Electives CE 1: Wisconsin Listings Elec. A: Bank-Owned (REO), Foreclosures and Short Sale Transactions in Wisconsin CE 2: Wisconsin Offers Elec. B: Unique Transaction Types and Issues CE 3: Wisconsin New Developments Elec. C: Wisconsin Property Management CE 4: Contingencies in Wisconsin Approved Offer Forms Elec. D: Agency Roles with Buyers in Wisconsin For complete information about 2013-14 CE, visit www.wra.org/RECEinfo.

Appraisal Continuing Education Date Course March 18, 2013 7-Hour National USPAP 2012-13 Update March 18, 2013 Appraising the Tough Ones March 19, 2013 Rules & Regulations — Myths and Facts (a.m.) March 19, 2013 Performing and Defending the Appraisal Review (p.m.) March 19, 2013 Loss Prevention for Real Estate Appraisers

Location Appraisal Conference Appraisal Conference Appraisal Conference Appraisal Conference Appraisal Conference

I I I I I

Wisconsin Dells Wisconsin Dells Wisconsin Dells Wisconsin Dells Wisconsin Dells

All courses approved for Wisconsin, Michigan and Minnesota appraiser CE as well as Wisconsin assessor CE.

Date Course July 15-19, 23-24, 2013 Sales Pre-license Course Mar. 18-21; Apr. 2-5, 2013 Broker Pre-License Course

Location Madison Madison

Member $325 / ATD: $345

Non-Member $325* $345*

*Plus books

Designation Courses Date Course Location March 12-13, 2013 GRI Course 2/CRS 201 — part 2 Appleton/Eau Claire/Madison/Milwaukee April 10-11, 2013 2-Day ABR Course Madison April 18, 2013 BPOR: The Agent’s Role in the Valuation Process Appleton

ATD $335 $365

WIREALESTATEMAG • MARCH 2013

Pre-License

product showcase by Nichole Mickelson

Introducing Electronic Books through the WRA successful, finding a niche and why some may view real estate agents unfavorably. Your clients are counting on you to be their advocate and protector. The goodwill you build by always being straightforward with your clients is what will create longlasting customer relationships, referrals for new clients and repeat business. If you are committed to providing your clients with the best service possible, The Honest Real Estate Agent is a vital resource. For more information, go to www.wra.org/PUB171.

WIREALESTATEMAG • MARCH 2013

eBooks now available!

As the number of real estate professionals using mobile electronic devices grows, the WRA is now partnered with Amazon.com to offer real estate books in electronic format! Electronic books, or eBooks, eliminate the need to carry an additional book with you since the hardcover or paperback book is available to you directly through your mobile device. iPad, Nook and Kindle are the three most popular brands of electronic reading devices as they offer a larger screen than a smartphone, however the majority of smartphone producers offer a compatible eBook reading app. Virtually all of the books currently in the WRA products library can also be found as eBooks through Amazon.com. Simply go to www.wra.org/ebooks and click on any of the books listed under the eBooks section. Following this link will allow you to browse all of the WRA-recommended books as well as other real estate books available through Amazon.com. And by clicking this link and viewing the eBooks on Amazon.com, you can continue to browse Amazon.com for any other products as well! An Amazon.com account is required to make any purchases. Setting up an account is simple and easy.

The Honest Real Estate Agent

Zip Tip: Attach a PDF to a transaction for signing with Digital Ink Did you know that if you receive a form in a PDF file from an agent or broker, such as an addendum or counteroffer, you can

Just one of the many publications offered through the WRA library that is also available as an eBook is The Honest Real Estate Agent. Consumers want and expect their REALTOR® to be truthful and look out for their best interests instead of just focusing on commission from the sale. Being “honest” is doing what is right for your clients. The Honest Real Estate Agent focuses on being authentic with your clients through the entire sale process because your clients are relying on you for your knowledge and advice from beginning to end. The author gives a candid investigation through various chapters that explore traits and characteristics for being

add it to any forms you are sending through Digital Ink to be signed by your client? All you have to do is attach the PDF(s) at the eSign Selection screen from within your zipForm® 6 account, then add the signatures by selecting the party and what/ where to sign. Easy-to-follow, step-bystep instructions on how to do this can be found under the Support section at www. zipform.com, number 26 under the Digital Ink Knowledge Base, or look under the Help tab within your zipForm® 6 program. If you would like additional assistance, contact Digital Ink support at 586-840-0140.

Nichole Mickelson is the Business Services Assistant for the WRA.

realtor sales tips by Maura Neill

Mixing Business with Social Keeping your business safe on social media

Be careful when discussing a client on social media. Publicly congratulating a client for a closing and posting photos of them at the closing table or in front of their new home on Facebook may seem like a great way to remind your network that you are a REALTOR® and that you have happy, satisfied clients. But what about clients who carefully protect their privacy? It’s a good idea to obtain permission before engaging with clients on social media, tagging them in posts, and especially before posting photos of them. It can be as simple as asking them via e-mail and saving that e-mail and their response; or for a more formal way to obtain permission, ask your attorney to draft a release

form to have your clients sign, authorizing you to use their photos and testimonials in your marketing and include a clause specifically discussing social media platforms.

Don’t discuss other agents’ listings or your clients’ reactions on social media. The homes you show are someone’s home, and regardless of whether you and your client think the property is weird or ugly, it’s unprofessional — and bad manners — to put those reactions online. Do not post photos of other agents’ listings on your social media sites; you should not even be taking photos or video of other agents’ listings without the seller’s consent.

Refrain from status updates that can violate client confidentiality. Keep in mind that you have fiduciary responsibility to your clients. No matter how excited you are to shout from the rooftops that “I just got a full-price offer on my brand new listing!”, remember that until that deal closes, certain details of the transaction, such as the price, are not for public consumption. What seems like a great marketing opportunity — who wouldn’t be excited about a full-price offer? — could actually be a violation of your brokerage agreement with that client.

Become familiar with your state’s policies on online advertising/marketing as well as your company’s social media and privacy policies. Ignorance of the law excuses no one. You’ll still get that speeding ticket even if you didn’t know the speed limit; similarly, you can still get in trouble with your online

presence even if you didn’t know the rules. Check with your state or local REALTOR® association to make sure you’re complying with their rules and state law for online marketing in your social media exploits. Request a copy of your company’s social media policy and privacy policy to make sure you’re in compliance there, too.

Warn clients of the dangers their own social media use can pose to their transactions. Take a moment in the initial buyer or seller consultation to educate your clients and ask them to refrain from posting about their home search and their contract negotiation on their social media channels, then continue to remind them throughout the process. Even the most secure privacy settings may not be sufficient to keep their transaction safe. It’s best to just keep all discussion of the buying and selling process on radio silence until the last page has been signed at the closing table and the keys have been transferred to the new owner. Social media has proven to be an incredibly powerful tool for REALTORS®. If used correctly, it can help you to keep in touch with and engage current and past clients and prospect for new ones. Just be sure to use common sense and keep legal and ethical concerns in mind anytime you are online. Maura Neill, ABR, CRS, CDPE, e-PRO, is a second-generation REALTOR® in Atlanta, Georgia, who combines her love for the industry with passion for education. She is a solo agent with RE/MAX Around Atlanta, actively representing buyers and sellers on a day-to-day basis, and considers education — both clients and other real estate agents — an important part of her role as a REALTOR®. An active real estate speaker and instructor on technology, social media, client retention and customer service, you can find her online at www.MauraNeill.com and www.BuySellLiveAtlanta.com or on Twitter, @MauraNeill.

WIREALESTATEMAG • MARCH 2013

icture it: you found your buyer a great house, she signed the offer and you’ve submitted it to the cooperating agent. You hope to negotiate a little off the list price as well as some seller-paid closing costs. You’re hoping the shifting market will still bear those concessions by the seller, but you know your buyer loves the house enough to pay full price. The listing agent calls with her seller’s response: full price, no closing costs. Then she drops the real bomb: she and her seller looked up your buyer on Facebook and saw her status update: “I’ve found the perfect house! I just made an offer and I don’t care what it takes!!!” Not only did you know she’d pay full price for the house, now the seller does, too. What could you have done to prevent this? Social media has opened up a whole new realm of possibilities — and liabilities — for REALTORS®. With every benefit and advantage comes a possible opportunity for disaster. It can be confusing: you’re told to be social, to be authentic, to be yourself. However, here’s what you may not realize: what you post can be hazardous to your business. Use these tips to keep you safe on social media and to help you keep your clients safe, too:

legislative by Tom Larson

Vested Rights Legislation

WIREALESTATEMAG • MARCH 2013

Taking the guesswork out of the permit processing game

Among its priorities for the 201314 legislative session, the WRA is seeking legislation to clarify when a property owner’s right to use or develop property in a desired manner is protected or vested from subsequent changes to local landuse regulations, zoning ordinances and permit requirements.

Overview The concept of “vested rights” recognizes that, at some point in time, it is unfair to change the rules and regulations affecting a property owner’s ability to use or develop his or her property. More specifically, the term “vested rights” refers to the point in time when a property owner’s right to use or develop his or her property is protected from further changes to land-use regulations, such as subdivision regulations, zoning changes or other requirements. Wisconsin law currently establishes “vested rights” for changes to both zoning and subdivision regulations. Specifically, current law establishes the following: • Zoning: A property owner’s vested right to a particular zoning classification vests when the property owner applies for a building permit that complies with the applicable regulations. See Lake Bluff Housing Partners v. City of South Milwaukee, 197 Wis. 2d 157 (1995). • Subdivision plats: A property owner’s right to have a proposed

REALTOR® &

GOVERNMENT DAY subdivision plat evaluated based on current subdivision regulations vests at the time the owner submits a preliminary plat — or final plat if a preliminary plat is required. See Wis. Stat. § 236.11(1)(b). In summary, both of these laws recognize that a property owner’s right to use or develop his or her property vests upon submitting an application or permit to the government entity responsible for approving such application or permit.

The problems

March 20, 2013 | Monona Terrace | Madison, WI

REALTOR® & Government Day is your

Two problems exist with current law. First, a property owner’s vested right to zoning is found in case law, not the state statutes. This is a problem because not all local officials are attorneys and thus are often unaware of legal standards established in case law. Second, the law is silent as to when a property owner’s rights vest with respect to future changes in other types of development regulations and permit requirements at the local level. While the same rationale applied by courts to zoning changes would seemingly apply to other development regulations and permit requirements, it is not clear how a court would actually rule on such a case. Moreover, it would be expensive and time-consuming to find out.

opportunity to help shape the laws that

Proposed solution

that impact the real estate

To ensure that the rules related to changes in the developmentapproval process are known by both permit applicants and permit grantors, the WRA is recommending the passage of legislation to specifically state that any changes to local land-use regulations cannot be applied to permit applications that have been submitted prior to the effective date of those changes. Under the legislation, once a property owner submits an application for a building permit or other development-related permit or approval that complies with all applicable local ordinances and regulations, the property owner has a vested right in (a) having the building permit or development-related permit or approval evaluated based on the local ordinances and regulations in place at the time of submission, and (b) building on or developing the property in accordance with the building permit or developmentrelated permit/approval. Any subsequent changes made to local ordinances and regulations are not applicable to the approval of the building permit or other development-related permits and approvals. Providing greater certainty in the development-approval process will hopefully reduce unnecessary delays and costs related to both larger economic development projects like industrial parks, commercial/retail centers and residential subdivisions as well as smaller-scale projects like home remodeling. For more information on the vested rights legislation, please contact Tom Larson at tlarson@wra.org or at 608-240-8254.

industry in Wisconsin.

Tom Larson is Vice President of Legal and Public Affairs for the WRA.

impact you and your real estate business in Wisconsin. Through lobbying efforts at the state Capitol, you’ll meet with state lawmakers and have a unique opportunity to advocate for issues

Gov. Walker will share his thoughts on the Wisconsin economy, and the program will conclude with a reception from 4:30 p.m. – 6:30 p.m.

www.wra.org/RGDay

legislative by Joe Murray

WIREALESTATEMAG • MARCH 2013

Roggensack v. Fallone

Pat Roggensack

Ed Fallone

(Incumbent)

(Challenger)

Occupation:

Wisconsin Supreme Court Justice

Occupation:

Marquette Law Professor

Age:

Family:

Married, three adult children

Family:

Married, two children

Public service: Current Supreme Court Justice Wisconsin Court of Appeals, 1996-2003 Past board member of YWCA and YMCA, Madison Fund for Women Friends of the Arboretum Education: Bachelor’s degree, Drake University, 1962 Law degree, UW-Madison, 1980 Endorsements: 53 sheriffs statewide Milwaukee Professional Firefighters Association Milwaukee Police Association Former Supreme Court Justices William Callow, Louis Ceci, Don Steinmetz and John Wilcox Wisconsin Restaurant Association Wisconsin REALTORS® Association

Public service: Founding president of Centro Legal Past president, Latino Community Center Founder, Wisconsin Stem Cell Now Education: Bachelor’s degree, Boston University, 1988 Law degree, Boston University, 1988 Endorsements: AFL-CIO AFSME SEIU Madison Teachers Inc. American Federation of Teachers WEAC Fair Wisconsin Former U.S. Senator Russ Feingold

legislative

“Two years ago, Wisconsin descended into a true state of political chaos, and Justice Prosser found himself caught up in a fight he didn’t anticipate. Interest groups on both sides of the collective bargaining fight jumped into the race financially and organizationally, and voters responded by turning out in record numbers for the April election.”

Money According to the Wisconsin Democracy Campaign, an organization that tracks campaign spending in Wisconsin, total spending in the 2011 KloppenburgProsser race, including all candidates, political parties and interest groups, was

$5.4 million. The Supreme Court race with the highest spending was the 2008 Gableman-Butler contest at $5.96 million. Is it possible the 2013 FalloneRoggensack race will match or exceed 2011 spending? Sure. If the national unions decide to get in again, spending would quickly escalate, although this scenario is unlikely for two important reasons. First, Justice Prosser was on the ballot during the height of the collective bargaining fight between Scott Walker and the public employee unions, and the 2011 contest was really a proxy fight between the unions and Walker. This dynamic drove campaign spending up significantly. Second, the Fallone-Roggensack race likely won’t match the 2011 spending due to the decline in membership of publicsector unions in the aftermath of Act 10.

Voter turnout The 2011 Kloppenburg-Prosser election set an all-time Wisconsin record for the total number of voters in a Supreme Court contest. Approximately 1.5 million voters in the 2011 election shattered old records going back to the 1960s. The heavy spending and hyper-partisan 2011 race nearly doubled the average spring election turnout of 800,000 statewide. Turnout will almost certainly decline this April. Democrats and unions framed the 2011 Supreme Court election as a potential rejection of Gov. Scott Walker and his policies. Their theory was if Prosser was defeated, then Walker himself might be defeated in his recall in 2012. Both Prosser and Walker went on to win. Without the extra motivation generated by the 2011 recall movement, it’s hard to imagine a scenario where

Democrats and Republicans can generate the voter turnout of two years ago. If this is true, the advantage goes to the incumbent Pat Roggensack.

Incumbency advantage Incumbent justices running for re-election to the Wisconsin Supreme Court win 94 percent of the time. Since 1852 when the first three justices were elected to the state Supreme Court, only six incumbents in state history have been defeated, according to the Humphrey School of Public Affairs. In those 160 years since, six incumbents were defeated, 89 were victorious, and 26 elections were open seat contests. The Humphrey School numbers illustrate that while Supreme Court justices in Wisconsin have campaigned on non-partisan ballots for almost 100 years, “the incumbency advantage, that is usually so powerful in contests for partisan office, has remained in full force across the 159 years since the first justices were elected to the state’s highest court in 1852.” Two years ago, Wisconsin descended into a true state of political chaos, and Justice Prosser found himself caught up in a fight he didn’t anticipate. Interest groups on both sides of the collective bargaining fight jumped into the race financially and organizationally, and voters responded by turning out in record numbers for the April election. The 2013 Fallone-Roggensack Supreme Court contest is unlikely to match the intensity of that historic election. Joe Murray is Director of Political and Governmental Affairs for the WRA.

WIREALESTATEMAG • MARCH 2013

ince 2007, Wisconsin Supreme Court races have become more expensive, more competitive and far more contentious. In the 2011 Supreme Court race between attorney JoAnne Kloppenburg and Justice David Prosser, which took place during the height of protests against Gov. Scott Walker’s collective bargaining changes, the Wisconsin electorate was extremely divided and polarized, driving voter turnout in that election to an all-time high and generating one of the most expensive Supreme Court races in Wisconsin history. In fact, “nonpartisan” Supreme Court races have become increasingly partisan. The Kloppenburg-Prosser race was the most partisan election over the last seven years. Herbert Kritzer, a political scientist and professor at the University of Minnesota Law School, has tracked the partisan voting patterns of Supreme Court races in Wisconsin and identified the 2011 race as the “most partisan (voting) pattern that we have seen (in Wisconsin) at least since World War II.” So the question is: will the 2013 Wisconsin Supreme Court race between incumbent Justice Pat Roggensack and Marquette law professor Ed Fallone look like the highly partisan race in 2011? Maybe, maybe not. Let’s compare the political landscape in the 2013 race to the 2011 Supreme Court contest.

realtor IN THE COMMUNITY

A Mission for Hope, Change and Life Rita was found in end-stage starvation. Odilia had severe symptoms of malnutrition, unable to stand on her own. And Otmar weighed 16 pounds at four years old and had been neglected by his mother. But these children’s lives, plus many more, were saved by Madison-area REALTORS® Kim and Randy Tews on a mission to save the lives of Guatemalan children knocking on death’s door.

WIREALESTATEMAG • MARCH 2013

ounded by Kim and Randy Tews, or “The Tews Team,” Outreach for World Hope (OWH) is a non-profit, tax deductible 501 (c)(3) approved, non-denominational Christian organization. The Tews’ mission is to improve the quality of life of the world’s poor by providing humanitarian aid, hope and compassion. Most of those benefiting from OWH are natives of the Chiquimula region of Guatemala, known as “The Dry Corridor” with its severe rainfall shortage that results in drought conditions and famine. Since it began in 2005, OWH has worked in this region to save local children facing end stages of starvation by providing food and vitamins as well as other forms of assistance such as medical needs, housing, education and more. OWH further supports Guatemalan families by providing tools for independent food production. OWH’s NET Program (Nutritional Enhancement Triad) is a threeelement initiative that has been successful in helping families with severely starved children to independently grow produce. OWH provides families with a vegetable garden with a simple irrigation system, eight egg-laying hens, and 10 fruit trees. The program provides a balanced diet and an ample supply of food throughout the year as well as a small surplus that can be sold in order to purchase more seeds, fertilizer and hen feed, making the project self-sustaining. OWH also works to provide access to

Photos from outreachforworldofhope.org

The Tews Team Kim and Randy Tews Restaino & Associates REALTORS®, Madison Founders of Outreach for World Hope medical care and better the education of these rural-area children. Those in need of specialized medical care, unavailable in rural eastern Guatemala, are transported on a five-hour trip to Guatemala City once each month to receive lifesaving treatment they need. To contribute to improving education, OWH provided several tons of school

Are you a REALTOR® in the Community? If you would like to be featured in the REALTOR® in the Community column, or nominate a fellow REALTOR®, visit www.wra.org/ritc for the submission form as well as a disclaimer form with full rules and details. We look forward to your submission! Until then, get out, volunteer, and have fun!

supplies and several hundreds of desks to replace existing makeshift desks made of bricks and planks at the local schools. OWH also opened three computer labs to teach children skills to lead to employment. Finally, OWH provides scholarships to children wishing to pursue higher education. Want to sponsor a child in need, see before and after photos of the children, or learn more about OWH? Visit www. outreachforworldhope.org. Contact OWH at outreachforworldhope@tds.net.

Kim Tews’ newly released book, Tears Water the Seeds of Hope, provides a glimpse into the adventures, challenges and triumphs of the OWH mission and work. Learn more about Kim’s book and mission at www. tearswatertheseedsofhope.com.

WHAT MAKES A CENTURY 21 AGENT? GUTSPAH. IT’S LIKE CHUTZPAH. BUT WITH EVEN MORE GUTS, MOXIE AND METTLE. LIKE THE KIND OF METTLE THAT’S STRONGER THAN STEEL. WITH NERVES TO MATCH. THAT’S GUTSPAH. AND GUTSPAH DELIVERS EVERY TIME. ®

CENTURY 21 AGENTS. SMARTER. BOLDER. FASTER.

C21.COM U.S. SOCCER IS A TRADEMARK OF THE UNITED STATES SOCCER FEDERATION, INC. ALL RIGHTS RESERVED. ©2012 Century 21 Real Estate LLC. All rights reserved. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An equal opportunity company. Equal housing opportunity. Each office is independently owned and operated.

the 2nd annual Wisconsin Home ownership conference, hosted by WHEda, is a must attend

this yearâ&#x20AC;&#x2122;s conference will be two days, featuring continuing education (cE) training courses for loan

for lenders, rEaltorsÂŽ and other partners invested in creating sustainable home ownership

officers and real estate professionals on day one and world-class keynote speaker, cary mullen, on day two

across Wisconsin.

along with 12 highly informative breakout sessions.

Wisconsin Housing and Economic dEvElopmEnt autHority 800.334.6873