October 2009 - Wisconsin Real Estate Magazine by Lauren Bizorik

Best of Legal Hotline

Answers to your questions about Twitter, URL’s and E-Commerce.

“No Call” law

Increased fines are proposed for those who violate Wisconsin’s law.

MAGAZINE

October 2009 $5.00

10must-have

gadgets

Maybe it’s time to treat yourself to a new gadget or two.

Are you comparing apples to apples? If you’re interested in growing your business, just remember all real estate companies are not the same. Around the world and across America, no one sells more real estate than RE/MAX. Maybe it's because our brokers have more experience. Maybe it's because they have more tools and resources. Or maybe it's just because they're

How do you like these apples? • RE/MAX owns more than half of all Real Estate advertising on television today. • The RE/MAX LeadStreet online management system delivers over 6,000 Free Leads to its brokers and agents every day. • RE/MAX Agent Training on Demand provides 24-7-365 education from the industry’s best coaches. • The RE/MAX Design Center features thousands of professionally designed, customizable marketing materials. • RE/MAX now has the most dynamic Web Referral System in the industry, • The RE/MAX Satellite Network (RSN) is the real estate industry’s only proprietary educational television system. • RE/MAX now enjoys global dominance in over 72 Countries around the globe.

Put it all together and it’s easy to understand why No One Sells More Real Estate than RE/MAX.

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

professionals to the core. If that sounds like you, it's time to make your move to RE/MAX.

Now is the time to make your move. For more information, view our new 8 Minutes with RE/MAX video at YouTube.com/REMAXNorthCentral.

joinremax.com Join RE/MAX. New Franchises Now Available Including Green Bay, Beloit and Delafield. Call 800.878.8138.

table of contents

october

features

articles

10 Must-Have Gadgets It’s been a rough year, so treat yourself to a new gadget or two. Here’s our top 10 with an eye to increasing your bottom line but maintaining your budget.

Electronic Documents in Consumer Transactions While Wisconsin has the E-Commerce law, REALTORS® must also comply with the federal E-Sign Act. What does this mean? Find out here.

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Increased Fines Sought for “No Call” Violators The Wisconsin Legislature is considering legislation to increase penalties and fines for violators of the no-call law, the number one consumer complaint in Wisconsin.

Foreclosure Legislation Proposed A task force appointed to address this growing Wisconsin problem has recommendations for dealing with the rising foreclosure rate. Here are

news.wra.org

2009 |

vol.

26, no. 1

Your Cell Phone Could Save a Child Wireless AMBER alerts are one way to put technology to good use. Here’s how to sign up.

Develop Your Niche Direct your passion into a niche business and marketing program to set yourself apart.

Best of the Legal Hotline Answers to your questions about Twitter, URL trademarks and E-Commerce issues.

Mark Your Calendar The WRA’s Management Conference takes place December 10. You won’t want to miss this program!

2010 Wisconsin Elections Gov. Doyle’s retirement, campaign finance reform and third party watch - the election news you need.

New TIF District Legislation Introduced The economic downturn is affecting TIF Districts, and new legislation may help those

News

inside the wra

with bill malkasian

Top News Stories in and Around the Industry

Top News Stories in and Around the Industry substantially increase funding for rental assistance, United Way Honors the Stark Family Wisconsin Receives Millions to Ease working families. for Service to Foreclosure Crisis Jumping backparticularly to politics help andfor elections, ND WHAT A CONVENTION IT WAS for the nearly Community ®Milwaukee Business Journal (WI) (09/30/08) we have a very special picture of 1,000 REALTORS , affiliates, guests and exhibitors United Way of Dane County NARstaff Releases Theone state is due to receive nearly $39 ® and REALTORS who showed up for of oftheWisconsin best conventions in membersFree whoFHA haveToolkit

million in federal funds to stabilize neighborhoods United Way of Dane C u n t y history. ouro 100-year Considering the challenging contributed toWisconsin RPAC REALTORS® this year. Association Pictured (10/30/08) on and off my a spate of abandoned According recognized the Stark economic Family with timesthe we’re2008 in, I’d like tostave extend personal thanks homes. to page 3 are 38NAR of the 74 people who committed and the WRA are eager to help you meet the HUD and Gov. Jim Doyle, the funds are separate Tocqueville Society Award for outstanding everyone who madeservice this year’stoconvention a hit! to contribute $1,000 or more to RPAC this year. current challenges of the troubled economy. We from approximately $9.2 million the government is to the Dane County community and United Way. This is the first year we’ve created a special donor awarding the city of Milwaukee, where the foreclosure The Tocqueville SocietyThisAward celebrates and know that you need resources that can help you month’s issue of the magazine is dedicated to technology recognition club, called the Wisconsin RPAC Large currently percent. HUDatis awarding the acknowledges people or families, as the Starks, (which, such by the way, was the rate focusis of many 9.9 of the courses close transactions, andthe youcelebration need them at little or no Donor Council, and we will cap off with funds via its Neighborhood Stabilization Program, who have made a major impact on theand quality of life on the convention) its impact real estate industry, companies NAR has just released5 an a very tospecialcost. evening on November in all-new MadisonFHA forToolkit under which almost $4 billion is being allocated in Dane County through their exceptional service and agents. Many of our articles this month also touch on how for FREE to help the financing these donors.online A special thank you you goesgettoclients Jim Imhoff, local and state governments for the redevelopment commitment to the community. Billand Malkasian technology, the transaction andofreal estate law are all integrated NAR 2009 Major Donor national RPAC trustee, for It is abandoned and foreclosed houses. they needWhip in a and credit-strapped environment. WRA President

in today’sReceives marketplace. City Housing Authority coordinating this should look forward to hearing one effort. of theYou most comprehensive toolkits NAR has Not Just for Personal 100-Unit Grant Speaking of the law, you’ll wantSites: more about RPAC and the elections in the months ahead. ® to be sure to read Debbi Conrad’s ever produced, and it’s available to all REALTORS Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia Connections Anymore article on “Electronic Documents in Consumer Transactions,”

nowmonth, by visiting the link below. also have a final noteright for this October marks the They beginning of Minneapolis-St. Paul Business Journal (09/29/08)As Grayson, The city of Milwaukee’sand housing is dueof the Legal Hotline,” which focuses on Tracyauthority Rucka’s “Best Katharine our fiscal year. That also marks the beginning of the dues billing launched a new page called “NAR Helps You Navigate to receive $6.7 million in federal Hope VI money questions and answers about technology. cycle for localthe boards, state associations andcan NAR, runs St. Paul, Minn.-based REALTOR® Teresa Boardman Current Economy” where you findwhich dozens of to build 100 new housing units. The 100 units will between now and mid-December. Once again the WRA has held says Flickr, Facebook and other social networking be constructed in a 2.5-mile area and will include Also, during the month of October, the Wisconsin Legislature comes great products and resources, like the FHA Toolkit, themight dues at the same level as 2009 in the hope that all of our make toit debate easy toa number meet people 29 public housing andback affordable rental along with ourunits; friends insites Congress of who for free or at a steep discount. Visit www.Realtor. eventually become clients. While many professionals nine affordable housingissues. units for income-eligible members can continue to enjoy membership in 2010. While health care will dominate the debate on Capitol Hill org/NARHelpsYou for links to these great programs are using these sites to make business contacts families; and 62 moderately priced, open-market at the federal level, the tax writing committees of both the House On behalf of and theproducts. newly-elected leadership, recently installed and companies use them to conduct background condominiums. HUD Secretary Steven C. Preston and Senate will tackle the question of extending the $8,000 tax at the WRA Annual Convention, we wish you the best and look checks or recruit new workers, many simply want comments, “Milwaukee’s housing authority has credit into 2010. received “Call for Action” from connectthe with people who have similar interests. demonstrated it has the leadership to By leadnow andyou’veto forward to working you inGoing the months ahead. Albeit a Homewith Loans Strong, NAR asking you to take action and let Congress know how you feel sell is dead. It According to Boardman, “The hard revitalize neighborhoods and transform lives. Bit Tighter, in Area aboutand extending expanding the Homebuyer Tax Credit, I doesn’t work door-to-door, andand it doesn’t work on Cities like Milwaukee change grow andand need to Wisconsin State Journal (10/17/08) Balousek, Marv hope more information this social for networks.” On Flickr,on Boardman connected revitalize housing to make sureyou’ve many responded. aren’t pricedStay tuned out.” Milwaukee is oneand of other a half-dozen housing legislative issues thiswith fall. a fellow photographer who eventually used her Despite the ongoing national credit crisis, property authorities nationwide to receive new Hope VI services to purchase a home. professionals say mortgage money remains available On the state front, Kevin King writes on proposed legislation to grants. throughout southern Wisconsin to home buyers increase the penalties and fines for violation of Push Wisconsin’s Foreclosures RentsNoHigher, Until Next Time, Housing Study Delay Frustrates Call law. Tom Larson writes about new legislation introducedFamilies to Squeezing Low Income with solid credit. Ron Steinhofer, manager of Public Radioabout (MN) (09/21/08) Advocates help struggling TIF districts, andMinnesota Mike Theo writes proposed Olson, Dan Marshall & Ilsley Bank’s regional home lending Milwaukee Journal Sentinel (10/07/08) Williams, Scott foreclosure legislation.

In Minnesota’s Twin Cities, a wave of home Two years after promising the Milwaukee metro foreclosures has pushed more people into the rental Shifting to the education front, there are some specific dates area’s first major housing study gears in three decades, apartment sector. The result is an intensifying and programs you will want to put on your nowand thatSt. will be rental housing the Southeastern Wisconsin Regional Planning demand oncalendar Minneapolis Paul’s up in the to near Conference, December Commission (SEWRPC) iscoming still struggling getfuture: the Management stock, so much so that the vacancy rate is Bill very low 10 (with education on rise. December effort launched. Proponents hopepre-conference the study will continuing and rents are on the This, in9), turn, means lowserve as a catalyst for improving housingPewaukee; Country affordable Springs Hotel, Convention, January incomeWinter working families face higher monthly rents opportunities throughout the city’s Butthe Torches even though their income hovers at unchanging 25-27, 2010 suburbs. at Lake of Resort Casino & Convention commissioners have yetCenter to assemble levels. Since 2005,February the Twin Cities apartment in Lac an du advisory Flambeau; Designation Week, 8 -11, committee to oversee the2010 research or set a specific has dippedOut-of-State from 7 percent to closer to at Radisson Paper Valleyvacancy Hotel rate in Appleton; timetable for conducting the survey. Phil Evenson, percent. monthly rents over that same Continuing Education, March 41-3, 2010Average at Tuscany All Suites the commission’s executive director, said other issues span are up more than $25, rising to more Hotel & Casino in Las Vegas; time and Appraisal Conference, March keep getting in the way. The delays have frustrated than $850. The St. Paul-based Wilder Foundation Ho-Chunk Casino, Hotel & Convention Center. Watch for housing advocates the 10-11 most. atBethany Sanchez, recently reviewed income data for several Twin Cities informationMilwaukee coming soon vice president of the Metropolitan Fairat www.wra.org. counties. The organization’s research found that the Housing Council, laments, “It’s been a long time number of people in those markets paying too much Each of these programs is of the same WRA quality as the recently coming.” The Pewaukee-based commission has for their rental housing will double from around concluded WRA Annual Convention. Our education department not conducted a comprehensive review of housing 70,000 currently to a whopping 140,000 by 2010. to present you with year-round patterns since the 1970s.and Real Estate School work hard Some say a partial solution would be for the U.S. quality education. government to reverse course on housing policy and

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wisconsin real estate magazine wisconsin real estate magazine

october 2009 october 2009

group, states, “There’s plenty of money for home loans out there. It is slightly more difficult to qualify than two or three years ago, but if you have a good credit score, a good job and a down payment, money is available.” Steinhofer adds that banks still are making loans via such programs as Fannie Mae and Freddie Mac. Furthermore, credit standards remain about the same as they were six months ago, meaning that qualified home buyers can get loans if they have the proper income verification. On the downside, banks have been less willing to make loans with higher loan-to-value ratios. In addition, conventional financing without a down payment has indeed disappeared. However, 100 percent financing is still available with Veterans Administration and Rural Development home loans.

news.wra.org news.wra.org

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

John Flor, ABR, CRS, e-PRO, GRI, RRS, Chairman johnflor@sixlakesrealty.com John Horning, Chairman-Elect jphorning@shorewest.com

Real Estate notes from the wra RPAC Large Donor Council Recognized

Robert Keefe, Treasurer jphorning@shorewest.com William E. Malkasian, cae, President wem@wra.org Editorial Staff:

William E. Malkasian Publisher The Wisconsin RPAC Large Donor Council was created by NAR 2009 Major Donor Whip Jim Imhoff of First Weber Group, Inc. Members of the Council have contributed $1,000 to RPAC and/or the Direct Giver Program. As of September 29, 2009 the Council has 74 members. The Council was recognized during the Opening Ceremonies of the WRA’s State Convention in Wisconsin Dells.

Robert Uhrina Managing Editor

Terry O’Connor Publication Editor

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

Contact Us: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972 legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: editor@wra.org Website: www.wra.org

facebook: www.wra.org/facebook linked-in: www.wra.org/linkedin youtube: www.wra.org/youtube

wisconsin real estate magazine

october 2009

Seated: Joan Seramur, John Horning, Rob Keefe, Jim Imhoff, Kitty Kuhl, Joyce Bytof, Mike Mulleady, John Flor and Otto Bytof First Row Standing: Steve Lane, Dennis Midthun, Bob Weber, Kitty Jedwabny, Renny Diedrich, Judy Gull, Chuck Olson, Karen Pavlicek, Peter Shuttleworth, Sharon Helwig, Patty Hasenbank, Bill Malkasian Second Row Standing: Jerry Lyons, Joe Horning, Dan Lee, Tim Stemper, Ron Zahrt, KC Mauer, Jeff Kitchen, John Deininger, Mike Spranger, Joe Murray, Mike Theo, Darren Kittleson Back Row: Peter Sveum, Kevin King, Matt Miller, Rich Chronquist, Tom Larson Not in attendance: James Barry, III, Steve Beers, Rita Blenker, Tom Bunbury, Barry Chavin, Sue Decker, Peter Didier, Kevin Donnell, Michael Fardy, Norm Flynn, Larry Gleasman, Neil Hilgenberg, Phil Hilgenberg, Terry Hilgenberg, Michael Hoppens, Andrew Jensen, Robert Keller, Tammy Maddente, Steve Mills, Dale Nordeen, Fred Prassas, Stephen Provancher, Roger Rushman, Mike Ruzicka, Erik Sjowall, Dave Stark, Phillip Sveum, Scott Swick, Tom Sykora, Jim Villa, Terrence Wall, Scott Welsh, Peter Wiese, Marilyn Wille, John Young, Marshall “Bub” Zwygart.

Thank You to the Following Companies for Making Convention a Success! Act Sign LLC All American Title Company American Edge Real Estate Services, Inc. American Home Shield AmeriSpec Home Inspection Service Associated Bank Axley Brynelson, LLC Badger Remediation Services, Inc. Brook Furniture Rental Business Success Form CAndle Impressions Centralized Showing Service Chalmers Jewelers Century 21 Real Estate Col. Pops Popcorn Company Commission Express of Wisconsin Computer System Innovations, Inc. Country Springs Hotel Craftsman Construction Creative Network Builders Dee Sign Company Edina Realty Emmons Business Services Exit Realty Wisconsin Fairway Independent Mortgage Corp. Fields at the Wilderness First Bank Financial Center First American Title Insurance Co. Gannett Wisconsin Media GE Security - SUPRA Godfrey & Kahn S. C. Grand Geneva Resort & Spa Graphicolor Printing & Multimedia Graystone Consulting Greater Milw. Assn. of REALTORS® Ho-Chunk Hotel and Casino HMS North Central Holiday Inn – Madison

Homestead Realty Inc. Hometown Title Company HUD HYS Marketing Products, LLC Kalahari Resorts Lake Lawn Lake of the Torches Resort Casino Lowen Sign Company M & I 1031 Exchange Services M & I Bank Madison Club Magnets USA Marshall & Swift Mary Marko – Palm Reader Masterjohn Realty Inc. National Association of REALTORS® National Oilheat Research Alliance Nevada Bob’s Golf North Central Group Northern Mutual Financial Network Oakley Signs and Graphics Orange Shoe Gym Out Standing Signs Pearl Insurance Platinum Printing and Packaging Point Title LLC Preferred Title, LLC. Public Opinion Strategies PuroClean of Madison Radisson Hotel & Conference Center Radisson Paper Valley Hotel REALTORS® Assn. of Northwestern WI RE/MAX North Central REGIT, Inc. Rich Casto & Company River Valley Bank Roberta Vellucci Royal Credit Union

Royle Printing Company SassMama Art Showhomes Six Lakes Realty Suby, Von Haden & Associates, SC Suki Soap of Sweetwater Farm LLC The Quality Title Group Tiffany’s Home Staging, LLC Trappers Turn Golf Club U.S. Bank U.S. Department of Veterans Affairs Universal Home Protection USDA Rural Development Verizon Wireless Virtual Vision WESTconsin Realty WLM, LLP WHEDA Whirligig Online Marketing Wild Rock Golf Club Wilderness Territory Wisconsin Apartment Association Wisconsin Assn. of Home Inspectors, Inc. Wisconsin CRS Chapter Wisconsin Dept. of Veterans Affairs Wisconsin Housing and Economic Development Authority – WHEDA Wisconsin Legal Blank Co. Inc. Wisconsin Restaurant Association Wisconsin River Title Consultants Women’s Council of REALTORS® Wood Communications WRA 100 Anniversary WRA Real Estate School WRA Real Estate Store WRA Winter Convention zillow.com zipLogix

REALTOR NEWSWIRE ®

Top News Stories in and Around the Industry

NAR Offers REALTORS® Certification for Short Sales, Foreclosures

themselves.” Janet Jenkins, administrator of the state’s Division of Trade and Consumer Protection, also is advising Wisconsin homeowners to be aware of this form of fraud. She remarks, “Homeowners are being bombarded with advertising from companies claiming they can save homes, reduce mortgage payments or find free money for consumers. Unfortunately, often the only one that receives any benefit from these transactions is the business committing the fraud.” Loan modification scams and foreclosure rescue schemes are the two most common forms of these frauds.

Housing Wire (08/26/09) Golobay, Diana

The National Association of REALTORS® reports that almost a third of the previously owned homes that changed hands over the past three months were either foreclosure or short sales. In response to the ongoing trend in distressed-property deals, the trade group has rolled out a new Short Sales and Foreclosure Certification Program for its members. Participants must complete a one-day education program, which can be taken in person or online, followed up by three Webinars lasting one hour each. The curriculum will coach real estate agents in helping borrowers who want to avoid foreclosure. “Unfortunately, there are situations in which people just cannot afford to keep their homes,” notes NAR President Charles McMillan. “A short sale can help families protect their credit by avoiding a foreclosure. When a foreclosed or REO property is sold, it helps the surrounding community by reducing the impact of those properties on home values in the immediate area.”

Vacation Home Market “Realistic” Baltimore Sun (09/06/09) Umberger, Mary

Bargain hunters have descended on Wisconsin’s lakefront vacation home market in search of deals. But some sellers are not taking too kindly to the influx. Duane Nolte, for example, recently made a low offer on a waterfront home just outside Sturgeon Bay. Not only was the offer rejected, it alienated the seller because it was so low. The proposal lapsed without any further price negotiation. Nolte remarked, “We wanted to get into the game to take advantage of the bad economic times and get a good-value property.” After a month of house hunting in and around Door County, he did not find many bargains. Scott Bader, Nolte’s REALTOR®, remarked, “There are people out there who think they can steal properties. They can get some good deals, no question, but they’re not going to get what they want.” He added that prices are down from housing-boom levels, but only to a point. Tony Sienkowski, an agent with Century 21 Herget & Plavsic in Lake Geneva, noted, “Some people are looking for unrealistic bargains. Prices are lower, and the deals are probably better, but they’re not giving them away.” Bader, broker/owner of Coldwell Banker Door County Horizons in Fish Creek, concludes that second homes are not quite the same entity as the rest of the housing market. As a result, he advises potential buyers to learn all they can on the various differences.

Home Sales Up Last 3 Months in Southeast Wisconsin Pierce County Herald (Wisconsin) (09/11/09)

Home sales have increased for the third straight month in southeast Wisconsin. The Multiple Listing Service reports more than 1,500 homes were sold in August in Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha, and Walworth counties, representing a 2.6 percent increase from the same period in 2008. Mike Ruzicka of the Greater Milwaukee Association of REALTORS® says a reduction in prices has made homes affordable for more people. He also credits the $8,000 tax break for first-time buyers, low interest rates, and an ample supply of homes for sale.

Wisconsin Is Warning Homeowners About Loan Modification Scams and Foreclosure Rescue Scams WEAU-TV (Eau Claire, WI) (09/08/09)

New DNR Rule Would Restrict Building Along Shoreline

The Wisconsin Department of Justice has teamed up with the Wisconsin Department of Agriculture, Trade and Consumer Protection to issue a consumer advisory on foreclosure “rescue” services and loan workout solicitations. The number of complaints about both practices has been on the rise over the past few months. Chiefly, these “rescuers” look to make a quick buck or commit outright fraud by preying on a homeowner’s financial and emotional distress. Attorney General J.B. Van Hollen states, “While we will pursue those who perpetrate these scams, it is important that the public be aware of the tactics being used so that they can take steps to protect

Green Bay Press-Gazette (WI) (09/16/09) Walter, Tony

The Wisconsin Department of Natural Resources has proposed a new rule aimed at protecting the environment. The rule has been approved by the Natural Resources Board and is being studied by the state Legislature. If legislative committees don’t act on it, the rule would take effect 60 days after the panels notify the state agency of that decision. It sets new zoning standards for shoreland property owners by prohibiting them from having more than 15 percent of their land covered by structures or pavement, but

it can be as much as 30 percent if they implement certain environmental steps. It also establishes a 35foot height limit on any structure within the 75-foot setback area. The rule affects any property within 1,000 feet of a lake or 300 feet of a river or stream. “The overriding motivation is the balance between private and public rights and the need to restructure the rules to benefit both,” says Gregg Breese, shoreline program manager for the DNR. “We’ve been looking at lake water quality and habitat and watching them go down. We need to fix the problems we know exist. Nobody wants dirty water.” Assembly and Senate committees that oversee the DNR could vote to send the issue back to the department for changes. Panels from both chambers recently held hearings on matter, but neither acted on the changes and it’s unclear what they will do in the coming weeks. The Wisconsin REALTORS® Association and the Wisconsin Builders Association have supported the proposed rule.

Signs of an Improving Wisconsin Economy Showing Light WKBT.com (La Crosse, Wis.) (09/16/09)

Roberta Gassman, Secretary of the Wisconsin Department of Workforce Development, reports there are signs the state’s economy is improving. While economists say the worst may be over, state officials add it will take awhile to completely recover. In the meantime, they’re seeing some positive signs. “Businesses that are coming here because of our tax credit climate, to move here from other areas to grow their businesses here, and a number of businesses that are adding jobs,” says Roberta Gassman, Secretary of the Wisconsin Department of Workforce Development.

Your Cell Phone Could Save a Child Your profession in real estate puts you on the road to serve buyers and sellers. Your cell phone is an indispensable tool. Now, anyone can use their cell phone in a way that may save an abducted child. The first three hours after abduction are critical. By signing up for wireless AMBER alerts, you could play an important role in recovering an abducted child. It’s easy and free to sign-up. Real estate professionals, traveling to serve their clients, are well positioned to help save a child. Sign-up for wireless AMBER Alerts here; https://www.wirelessamberalerts.org/index.jsp

REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc. Reproduction, use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior written permission from the Wisconsin REALTORS® Association.

wisconsin real estate magazine

october 2009

news.wra.org

Realtor® sales tip

Become a Specialist develop your niche!

So where do you begin? Step 1: Pinpoint your passion. What do you know and love? What do you always enjoy talking about and sharing with others? What do you enjoy in your personal life? In what specific area of real estate do you have superior knowledge? Have you earned a designation or certification during your real estate career that really lit a fire in your belly? Those areas would be ideal for your niche.

By marcus A. wally

We live in a world of details and specifics. Businesses in today’s market must specialize in order to survive. If you think about it, there is probably a niche business for almost everything you can imagine. Internationally, it is all about globalization. Countries are intertwined and dependant on each other for specific goods not produced at home. This is an excellent example of doing what you do best and selling it to the rest of the planet. Marketing yourself to the masses is what most agents attempt to do. But it is vital that we all remember: there is no way that you can be everything to everyone. Oscar Wilde once said, “Be yourself as everyone else is taken.” So my sales tip this month focuses on becoming an expert in one field, sticking to it and becoming known and experienced in that one area of real estate. Then those who desire that specific product/service will come to you instead of you trying to reach the entire world. Make sense? Are you a pet lover? I am. Do you know that pet product manufacturing groups estimate that 63 percent of all U.S. households have pets, translating to 69 million homes? That is up from 51 million in 1988. Could this be your niche? Alternatively, do you ride a Harley Davidson motorcycle? Is this your potential specialty? How do you make a name for yourself by carving a real estate specialty that combines your interests with local market opportunities? If you succeed, you are guaranteed a win-win situation!

wisconsin real estate magazine

move to your town for the resort atmosphere that is offered there? Do your talents lie in helping seniors? Are you a holder of the Seniors Real Estate Specialist (SRES) designation? Is the commercial arena your cup of tea? Do numbers (math) excite you? Are you currently earning your Certified Commercial Investment

Please be extra careful not to alienate any one subgroup, but you are certainly allowed to be passionate about a certain group of customers/ clients.

that can guide you to your niche. Once you

Step 3: Fine tune your interest. For instance, living in St. Augustine, FL, which is “Our Nation’s Oldest City,” I have developed a niche within the historic district. I love and am very passionate about the old buildings, so consequently I am known as the downtown historic specialist. I have made a handsome living by working in an area that I love and understand well. Delivering excellent service requires that you understand your customers’ attitudes, tastes and motivations. Then, when they find out that you know your stuff, it’s amazing how quickly you can build your business in any field.

where I can network with individuals who share

Today the green issue is big…..is that you? Have you got a real interest in going green?

make your sales to other like-minded folks who

Step 2: Take a close look at your local market demographics. Find out what’s moving and shaking in your backyard. Does your local city have an abundance of a certain group of individuals? For example, in my town we have a large airplane manufacturing plant (Northrop Grumman Corp.). Is there a surge of baby boomers in your city, or perhaps a large population of a certain ethnic group that you may have a personal bond with (similar culture/ customs, etc.)?

Perhaps you are a beach fan and love the ocean, sun and sand. You might want to zero in on a defined geographic area like “the beaches.” Now do your part and become the beach expert!

Loved ones always tell us to strive to find a job that we enjoy and are passionate about. Accomplishing this will not only increase your odds of success, but you will never truly feel like you are working a day in your life! Well that’s what I’m talking about.

Do you live in a resort community and tend to

october 2009

Member (CCIM) designation? Perhaps your best skills are right in front of you, but you just can’t see the forest for the trees. Step 4: Take a hard look at your database. Evaluate your most recent clients/customers to see what patterns exist. We all start out as generalists,

but

hopefully

develop

into

specialists. Reviewing who we have been doing business with is a good way to identify patterns identify your niche, you can seek out and attend conferences and community gatherings related to it. I always enjoy attending the conventions my love and passion. Successful niche marketers rely on the Internet as one of the best tools for reaching buyers and sellers. Get those creative juices flowing and register a memorable Web site and e-mail address that speak to your niche. Then use your site to provide useful information. Start blogging about your passion – your niche – and get the world talking about you! Marcus A. Wally, MBA is an active Florida REALTOR® in St. Augustine, Florida - “Our Nations Oldest City.” Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. Marcus can be reached at 904-669-1081 or by e-mail at marcuswally@comcast.net.

feature

10must-have

gadgets

Rough year? Sure enough, things are tough all over. If you’ve managed to squeak by in this tumultuous economy, maybe it’s time to treat yourself to a new gadget or two--especially if it’s something that can help your bottom line in 2010. We’ve rounded up some killer gear for real-estate professionals, with an eye to the inexpensive so your budget stays intact. Netbook Computer

Last year, netbooks were a curiosity. Today, they’re a necessity, offering compact designs, improved performance, and low prices. Some models even have built-in wireless modems for anytime, anywhere Internet access (though plan on spending upwards of $60 per month for service for that particular perk).

Smartphone Smartphones are considered the Nirvana of all cell phones, combining phone, e-mail, text, Internet, camera, calendar functions and more -- all in one handy, easy to use device. Apple revolutionized the cellular industry in June 2007, when it introduced its first smartphone. While most technology companies were scaling back in the early 2000s, Apple began waging a war. And it paid off. The iPhone runs on a special version of Apple’s OS X operating system. It combines traditional mobile phone technologies with a high speed 3G network, GPS, an iPod, a 3.5 inch touch screen, a straightforward Web browser and thousands of downloadable applications. Apple suggests in its TV ad campaigns, “there’s an app for just about everything,” and to date this claim holds true. There are hundreds of real estate applications, ranging from home search tools to mortgage calculators, Zillow, Trulia and more. The latest 3GS model adds video capabilities, voice control and 32MB of storage.

While many early models were too cramped for comfort, the current “sweet spot” for netbooks is a 10-inch screen with a keyboard that’s about 90 percent of standard (i.e. just large enough for touch typing). Asus, Acer, Dell, HP, Lenovo, and MSI are among the companies offering models matching these specs, with prices usually falling in the $300-350 range. If you choose one of the aforementioned wireless netbooks, the system itself may cost you as little as $99. As of press time, the vast majority of netbooks were being sold with Windows XP, but you should be able to find Windows 7-equipped models by now. We highly recommend choosing Microsoft’s newer operating system, which is much more secure than XP, but still runs smoothly on lower-end netbook hardware.

The contenders are still at war and continue to make significant strides against Apple. The Palm Pre and Blackberry Storm are still arguably the top picks for legacy smartphone users and offer technology similar to Apple’s iPhone, but perhaps on a more familiar platform. They also give smartphone users a “non-AT&T” alternative, one of the iPhone’s biggest limitations in the United States. The Blackberry Storm offers the first-ever SurePress touch screen. When users press its large 3.25-inch LCD display, the screen physically clicks down, mimicking an actual keyboard. The Palm Pre is also a solid choice and is built on the longest running smartphone operating system in the world. It offers a candy store of applications and a simple interface, much like its iPhone archrival.

wisconsin real estate magazine

october 2009

news.wra.org

Pocket Camcorder

Bluetooth Speakerphone Bluetooth headsets are a pain. They’re always getting lost (or left behind), are uncomfortable to wear, and, let’s face it, are kind of dorky-looking. What’s the alternative for hands-free phone conversations in the car? A Bluetooth speakerphone like the Jabra SP200. Priced at around $50, the SP200 clips to your visor and pairs easily with your phone. When a call comes in, just tap the big answer/end button. A large scroll-wheel adjusts the volume. Thankfully, the SP200 supports voice dialing (assuming your phone does as well). Better still, it offers noise-reduction features so callers hear less of your car’s road noise. Of course, you can use it in your office as well; it’s all but guaranteed to deliver better sound quality than your phone’s built-in speaker.

If property photos are good, property videos are roughly a million times better. But don’t bother with bulky, expensive, tape-based camcorders. Instead, choose a compact camcorder that’s built with YouTube in mind, like the $179.99 Flip Mino or $99.99 Creative Vado. These pocket-size camcorders record YouTube-optimized video (read: low resolution, but suitable for online viewing) to internal memory, so you don’t have to mess with tapes or storage cards. Plus, they have hidden USB connectors so you can plug them directly into your PC. Best of all, built-in software helps you edit videos and upload them to YouTube in just a few steps. From there, you can just embed the videos on your site like you normally would.

GPS Receiver Arriving late to an appointment because you got lost or stuck in traffic makes a bad impression. You can avoid both kinds of delays with a GPS receiver, which plots the quickest route to your next destination using satellite technology. All models provide voice-prompted, turn-by-turn directions, but the latest ones add amenities like Bluetooth and real-time traffic updates. Garmin’s nuvi 770, for instance, incorporates a special FM receiver that displays alerts about traffic delays and road construction, and then gives you the option of taking a detour around the trouble spots. The TomTom GO 910, meanwhile, doubles as a speakerphone, enabling you to place and receive hands-free calls via your Bluetoothequipped cell phone. You can pick up a basic, no-frills GPS for as little as $200, while models with some of the aforementioned advanced features sell for $400 or more.

wisconsin real estate magazine

october 2009

feature

iPod Touch Let’s face it: When it comes to cell phones, the iPhone still rules the roost. But what if you don’t feel like joining up with AT&T for two years and paying a minimum of $70 per month for service? Get the next best thing: an iPod Touch, which is exactly like an iPhone–without the phone. Actually, by spending a few extra dollars on a headset and loading free voice-over-IP (i.e. Internet telephony) apps like Skype and Truphone, you can make calls on an iPod Touch. You just need to be in proximity of a Wi-Fi hotspot, like the one in your home, office, or favorite coffee shop. These apps cost pennies to use, and you pay zero monthly fees to AT&T. Not a bad compromise! Of course, the Touch also delivers killer games, video, Web browsing, e-mail, and all those awesome apps you see in the iPhone commercials. Oh, and don’t forget: It’s an iPod, too. The latest Touch models start at $199, but you can find like-new refurbished models in the online Apple Store for as low as $149.

Eye-Fi Explore Video Want to make your old camera seem new again? Get the ultimate memory card to go with it. The Eye-Fi Explore Video is a 4-gigabyte SDHC memory card that wirelessly and automatically uploads photos and videos from your camera to your PC, your Flickr account, Snapfish, or any of 20-plus other destinations. It’s compatible with all cameras that accommodate SD cards, and it’s priced at $99.99. The only catch: You need to be in proximity of a Wi-Fi hotspot, so you’ll have to head back to your office—or the nearest Starbucks. (Actually, the Eye-Fi Explore Video works with over 10,000 Wayport hotspots nationwide.) You can save a few bucks by opting for the Share Video version ($79.99), which lacks the Wayport support, or get the Share ($59.99) and forgo video uploads. Whichever Eye-Fi you choose, you’ll love the convenience of this little card.

wisconsin real estate magazine

october 2009

news.wra.org

Virgin Mobile Pay-As-You-Go Wireless

If you’ve ever used one of those aircard-type wireless modems, you know how indispensible they quickly become. You also know the pain of having to sign yet another two-year contract and pay, on average, $60 per month. That’s over and above whatever you’re already paying for your cell phone! Thankfully, there’s finally an alternative: Virgin’s new Broadband2Go offers no-contract, pay-asyou-go wireless Internet access. To use the service, you’ll need Virgin’s Broadband2Go USB Device, which is available at Best Buy for $149.99. Like any good USB device, this one contains its own software (for Windows only–sorry, Mac users), so you can plug it into any PC and get online straight away. It also doubles as a microSD reader, meaning you can pop in a memory card and use the modem as mobile storage. As noted, there’s no contract required to use Broadband2Go, but you do need to choose a service plan. The least-expensive one ($10) gives you 100 megabytes of data and expires in 10 days--not at all a bad deal if you’re taking a trip and need Internet access only during that time. The top-end plan costs $60 for 1 gigabyte (and a 30-day expiration), and there are options in between.

Sign Light According to NAR, the yard sign contributes to the sale of a home 63 percent of the time. Your yard sign won’t do much good if potential buyers can’t see it. The aptly named ListingLight solves the pesky problem of nightfall by illuminating both sides of your sign, thus putting it to work for several extra hours per day. Powered by six C-cell batteries, which will last up to eight weeks according to the manufacturer, the light installs on top of any sign (up to ¾-inch thick) and includes a locking mechanism to help prevent theft. It relies on a built-in timer and light sensor to turn on and off automatically, so you can set it and forget it. Key features include: full two-sided sign illumination, photo eye sensor for auto-turn off at dusk and turnkey installation that requires no holes to drill. A single ListingLight costs $75, but the pack of four that costs $275 is a better deal.

Wireless Broadband Modem Tired of looking for Wi-Fi hotspots on the road? Now you can enjoy broadband Internet access from just about anywhere. All you need is a wireless modem and data plan from your carrier. The latter will cost you $50-60 monthly from AT&T, Sprint, or Verizon, while the modem itself can usually be had for under $100. These devices usually plug into one of your notebook’s USB ports. Before you sign up for service, check the coverage areas for the provider’s high-speed data network. If you live and/or work in remote or sparsely populated areas, you might have to settle for connection speeds that are closer to dial-up than broadband—at which point you might be better off hunting for Wi-Fi after all.

wisconsin real estate magazine

october 2009

Tech guru Rick Broida writes for CNET and PC Magazine. He is the author of over a dozen books, including How to Do Everything with Your Palm Powered Handheld, 6th Edition.

legal

Electronic Documents in Consumer transactions By Debbi Conrad

Wisconsin’s Electronic Commerce (E-Commerce) law provides a framework for the use of electronic records and signatures in real estate transactions. While E-Commerce law regulates electronic documents, signatures, records and transactions in Wisconsin, Wis. Stat. § 137.12(2p) indicates that the consumer protection features of the federal Electronic Signatures in Global and National Commerce Act (E-Sign) apply to Wisconsin transactions involving consumers. Parties in Wisconsin must comply with the E-Sign consumer requirements. Congress imposed special requirements in situations where the parties want to use electronic records or signatures in consumer transactions. Information required by law to be in writing can be made available to a consumer electronically only if: 1.

specified information regarding the consumer’s rights and ability to use electronic records is first clearly and conspicuously disclosed to the consumer; and

the consumer affirmatively consents to receive the information electronically.

A consumer’s consent to receive electronic records is valid only if the consumer consents electronically in a manner that reasonably demonstrates the consumer’s ability to access information in the electronic form that will be used in the transaction. Federal law requires that consumers give electronic consent prior to receiving electronic documents delivered by e-mail.

wisconsin real estate magazine

october 2009

E-Mail Document Delivery under the Revised WB-11 Offer to Purchase Discussed in the May 2009 edition of Wisconsin Real Estate Magazine (online at news.wra.org/story.asp?a=1115), the newly revised WB-11 Residential Offer to Purchase is coming soon. Among the new features in the revised offer is the parties’ ability to choose e-mail as a method for the delivery of documents and notices. This means that REALTORS® will no longer need to use a Wisconsin REALTORS® Association Addendum D – Electronic Document Delivery or equivalent language in conjunction with residential offers to purchase. The updated WB-11 provides for personal delivery as a default and allows the parties to also choose commercial delivery, U.S. Mail, fax and e-mail as additional delivery methods when it comes to notices and documents related to the offer. The e-mail option (based upon the most recent draft) provides: (5) E-Mail: electronically transmitting the document or written notice to the party’s e-mail address, if given below at lines 52 or 55. If this is a consumer transaction where the property being purchased is used primarily for personal, family or household purposes, each consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. news.wra.org

Lines are provided where the e-mail addresses for the seller and buyer, respectively, can be written if this option is selected. As the e-mail delivery item from the WB-11 draft clearly states, the fact that there is e-mail option language in the revised offer does not mean that consumers do not have to first receive disclosures concerning their rights and provide electronic consent to the use of electronic documents, e-mail delivery and electronic signatures. The E-Sign consumer disclosures and electronic consent requirements apply whenever there is a consumer who wishes to receive notices and documents by e-mail that the law otherwise requires must be in writing. If the buyer and seller have both previously received their disclosures and provided electronic consent with their agents that stated the consent would apply throughout the entire real estate transaction, then the parties do not have to give electronic consent again for the offer. The only thing in this situation that would need to be included in the revised WB-11 would be to check the e-mail delivery box on the first page of the residential offer. With regard to other non-residential transactions, until those other offer forms are updated, either Addendum D or equivalent language in an addendum or in additional provisions should be used.

Addendum D Equivalent Language Although Addendum D will no longer be used with the revised WB-11, it still may be needed for listing contracts, buyer agency agreements and other types of offers, at least until those forms are also updated. If the parties or REALTORS® in a transaction prefer, language may be inserted in the additional provisions blank lines or in an addendum instead of using Addendum D. The parties or REALTORS® may consider adding language similar to the following to the additional provision lines of the buyer agency agreement, listing contracts and other offers to purchase. In these samples, the idea is to pick the appropriate introductory language, add the main language and then select the matching e-mail address lines. Introductory language: WB-11 RESIDENTIAL OFFER TO PURCHASE (11-1-99 version): “In addition to the methods of delivery authorized on lines 22-33 of this Offer, …” WB-1 RESIDENTIAL LISTING CONTRACT-EXCLUSIVE RIGHT TO SELL (7-1-08): “In addition to the methods of delivery authorized on lines 193-198 of this Listing, …” WB-36 BUYER AGENCY/TENANT REPRESENTATION AGREEMENT (7-1-08): “In addition to the methods of delivery authorized on lines 158-163 of this Agreement, …” Main language: delivery of documents and written notices to a party shall be also effective when accomplished by electronically transmitting the document or written notice to the party’s e-mail address given below. wisconsin real estate magazine

october 2009

If this is a consumer transaction where the Property being purchased is used primarily for personal, family or household purposes, each consumer stating an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law. E-Mail address lines: For offers to purchase: E-Mail address for Seller: _______ E-Mail address for Buyer: __________ For listing contracts: E-Mail address for Seller: _____ E-Mail address for Broker/Firm: _______ For buyer agency agreements: E-Mail address for Buyer: _____ E-Mail address for Broker/Firm: ______ E-Commerce Resources: www.wra.org/ecommerce Debbi Conrad is Director of Legal Affairs for the WRA.

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legal

best of the legal hotline

with tracy rucka

Do you Tweet? A broker is using Twitter to communicate with clients and customers. What rules apply to the content of Tweets? The REALTOR® Code of Ethics applies to all REALTOR® electronic communications including Twitter, blogs, Facebook, text messages, etc. When REALTORS® use modern technology to communicate with clients, customers and prospects, the Code of Ethics applies to the content of the communication. Article 12 of the Code of Ethics sets forth the true-picture standards and, per Article 2, REALTORS® must avoid misrepresentation and exaggeration and remember to keep confidential information confidential. A REALTOR® can be found in violation of the Code of Ethics for misstatements or gross exaggerations made in Tweets, e-mails or text messages just like in print or verbal communications. Tweets, blogs and other social media tools are great ways to keep in touch with buyers and sellers and generate leads. For example, a broker may want to tweet that he or she just closed another deal, or share information about an upcoming open house. When doing so, the broker must always keep in mind confidentiality, privacy and safety for both the agents and the consumers. For ideas and basics about using Twitter as a communication tool, see the National Association of REALTORS® Field Guide to Twitter at www.realtor. org/library/library/fg234. Article 12 of the REALTOR® Code of Ethics provides: REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08).

wisconsin real estate magazine

october 2009

URL Trademark Dos and Don’ts Can a member use the term “REALTOR®” in his or her URL, for example, valleyrealtor.com or teamnameyourrealtor.com? What use is authorized in a URL? Members are licensed by the NAR to use, with limitations, the member marks. Certain limitations apply to the style, color, punctuation and appearance of the collection of marks. As a general rule, consider if each use indicates membership in the association or if it is being used as a synonym for the term “real estate licensee.” If it is used as a synonym for a broker or agent, then the use is incorrect and violates NAR policy. Each of the URLs suggested in the question would represent misuses of REALTOR® marks as described in the NAR’s Membership Marks Manual (MMM). The complete text is available at www.realtor.org/letterlw.nsf/ pages/trademarkmanual. The MMM describes the improper use of the term “REALTOR®” in URLs: “The term REALTOR® may not be used with descriptive words or phrases. For example, Number1realtor.com, numberone-realtor.com, chicagorealtors.org or realtorproperties.com are all incorrect.” In addition, the marks must be used with reference to an individual member of the association, not a team within a real estate company. The MMM also gives examples of authorized uses in combination with a member’s name in URLs and in e-mail addresses: “For use as a domain name or e-mail address on the Internet, the term REALTOR® does not need to be separated from the member’s name or firm name with punctuation. For example, both johndoe-realtor. com and johndoerealtor.com would be correct uses of the term as a part of domain names and jdoe*realtors@webnetservices.com and jdoerealtors@webnetservices.com are both correct uses of the term as part of an e-mail address.” news.wra.org

signatures in the transaction. That is why Addendum D says, “If this is a consumer transaction whereby the property being purchased is used primarily for personal, family or household purposes, each consumer (buyer, seller, etc.) has consented electronically to the use of electronic documents, e-mail delivery, and electronic signatures in the transaction, as required by federal law,” and “Electronic Consent Given: 0 Yes.” Addendum D is looking for confirmation that electronic consent has been given by parties who are consumers. In simple terms, to correctly include e-mail as a form of delivery in a contract, two steps must be performed:

Using Electronic Commerce in Transactions A broker received an offer to purchase in which the cooperating broker has entered e-mail addresses for the seller’s and the buyer’s delivery addresses on Page 1 of the offer. Is this legal? If so, what are the potential risks associated with this form of delivery? The broker must meet both state and federal requirements to proceed with e-mail delivery in real estate transactions involving consumers. Both disclosure and consent are required by the Federal E-Sign law before using electronic records or signatures. One distinction under federal law is that consumers must provide electronic consent after receiving required disclosures. More information and copies of the WRA Addendum D and Consent for Use of Electronic Documents and Signatures in Consumer Real Estate Transactions are available on the WRA E-Commerce Resource Page at www.wra.org/ecommerce. For what exactly can a licensee use the Addendum D - Electronic Document Delivery form? When it comes to consumers, a party’s consent to the use of e-mail and electronic documents and signatures is a two-step process. 1.

The Addendum D or similar language needs to be incorporated into the offer, but if a party is a consumer, he or she first must receive the disclosures stated in the Consent for Use of Electronic Documents and Signatures in Consumer Real Estate Transactions (this form is available on ZipForm and at www.wra. org/ecommerce). The party must provide consent electronically (via e-mail or on a Web site) to the use of e-mail and electronic documents and

wisconsin real estate magazine

october 2009

Electronic consent (typically achieved by e-mail)

Execution of Addendum D or the inclusion of such language in additional provisions

Review the WRA Addendum D and the February 2008 Legal Update, “Electronic Commerce and E-Mail Delivery,” at www.wra.org/LU0802. An agent e-mailed the WRA Addendum D and consent for electronic transmission to the client. The client printed it out, completed it and wants to fax it back. The agent is able to receive faxes directly to her e-mail address. Is it acceptable for the client to fax it back to the agent’s fax number, which is received by her e-mail? The essential components for obtaining a consumer’s consent to the use of electronic signatures and documents in real estate transactions are acknowledging receipt of the mandatory E-Sign disclosures and electronic consent to the use of electronic documents, e-mail delivery of documents and electronic signatures. If the document is printed and faxed, it is fax delivery, not e-mail delivery. Likewise, a party cannot be handed an Addendum D, or the electronic consent document, sign it and hand it back to the agent to obtain consent for use of electronic documents. The agent’s or company’s software program that can convert a fax to an e-mail is a device on the receiving end of the communication and does not allow the client to demonstrate his or her ability to use e-mail. More information about e-mail delivery is available in “E-Mail Delivery: Working with Consumer Consents to Deliver Electronic Documents,” in the May 2008 issue of the Wisconsin Real Estate Magazine, online at news.wra.org/story.asp?a=922. Tracy Rucka is Staff Attorney for the WRA.

legal

increased fines for violators of “no call” law sought By kevin king

The Wisconsin Legislature is considering proposed legislation that will increase the penalties and fines for violation of Wisconsin’s No Call law. According to Sen. Jon Erbanbach, author of the original state law as well as the new proposal, the number one consumer complaint is violation of the No Call statute. Therefore, he supports increased penalties to discourage telemarketers who break the law from continuing to do so. The original law, one of the first in the nation and predecessor to the federal laws, became effective January 1, 2003. The law regulates telephone solicitation – defined as the “unsolicited initiation of a telephone conversation for the purpose of encouraging the recipient of the telephone call to purchase property, goods or services.” In the field of real estate, telephone solicitation generally includes cold calling, calls to owners with expired listings, calls to FSBOs and calls to consumers referred by others. A telephone solicitor may not make a telephone solicitation to a consumer’s residence or cell phone if that consumer’s telephone number is included in the “no call” directory maintained by the Department of Agriculture, Trade and Consumer Protection. Under current law, violations are subject to a forfeiture of $100 per violation. If the proposed legislation is adopted, and by all accounts it appears that such adoption is a virtual certainty, the penalty will increase to not less than $1,000 or more than $10,000 for each violation. In addition to the increased forfeitures, a person who suffers damages as a result of a violation of the law will be permitted to bring a civil action for injunctive relief and actual damages, or for $500 per violation, whichever is greater. Efforts have been on-going since 2004 to increase the penalties. The Wisconsin REALTORS® Association has consistently opposed the increase in fines as being excessive. Rather, the WRA believes that if there are flagrant, repeat offenders who consider the lesser fines under the current law as nothing more than a cost of doing business, then the Legislature should consider a graduated fine schedule that penalizes the habitual violator. We have also expressed our concern that the ability to bring private civil actions will trigger increased complaints, even for innocent mistakes by REALTORS® and others. Given the increase in potential liability, it is more important than ever to make certain REALTORS® are in compliance and do not unintentionally make a call in violation of the law. According to Sen. Erpenbach, the DATCP has done a good job in making certain that telemarketers always get warnings when they first violate the law and receive clear instruction on how to follow the law. Despite that assurance, what should REALTORS® make sure to do? Different REALTORS® may need to adopt different measures to protect themselves. Brokers who do allow or require telemarketing by their agents may not be able to escape the telephone solicitation registration requirements and fees. Brokers who do not engage in cold calling or related practices may

wisconsin real estate magazine

october 2009

news.wra.org

encouraging, but if taken literally, most REALTORS® “sell or promote the sale of property, goods or services for others.”)

need to seek other precautions to avoid having their follow-up and closing preparation calls classified as telephone solicitations, subjecting the brokers to the same registration and fees as the brokers who do engage in telemarketing practices.

•

Brokers and real estate companies that market over the telephone may obtain a copy of the Wisconsin No Call list by completing the DATCP’s annual application form and paying the annual fees. REALTORS® should contact the DATCP by phone (608-224-4999), fax (608-224-4939) or e-mail (WINoCall@datcp. state.wi.us), or visit www.NoCall.Wisconsin. gov/web/home.asp to obtain a registration application packet. A client or customer on the no call list should not be called unless the call meets one of the telephone solicitation exemptions. One way to protect REALTORS® who do not engage in cold calling but who do make followup calls and closing preparation calls is to find a reliable way to make sure these calls do not fall within the definition of a telephone solicitation. All REALTORS® should confer with their company legal counsel in developing the company’s policies on telephone solicitations. For example, the telephone solicitation definition does not include: •

•

A telephone call encouraging the call recipient to buy property, goods or services from a “nonprofit organization” unless sale proceeds are subject to Wisconsin sales tax or federal income tax. (Note: REALTOR® firms and companies are not nonprofit organizations.)

wisconsin real estate magazine

•

A telephone call made to a current client. A current client is a person who has a current agreement to receive, from the caller or the person on whose behalf the call is made, property, goods or services of the type promoted by the telephone call.

•

A telephone call made to a number listed in the current local business telephone directory.

•

One telephone call to determine whether a former client mistakenly allowed a contractual relationship to lapse. (This type of call may be made by REALTORS® under these limited circumstances.)

•

A telephone call made by an individual acting on his or her own behalf, not as an employee or agent for any other person. This exemption does not apply to a caller who sells or promotes the sale of property, goods or services for others. (At first glance, this exemption might be

A telephone call made in response to the call recipient’s affirmative request for the call. (This may prove to be the best option for most brokers who, after conferring with legal counsel, may insert language in all agency agreements and all broker disclosures to customer forms along the lines of “(Seller) (Buyer) requests but does not require Broker to telephone (seller) (buyer) regarding issues, goods and services related to the real estate transaction. This request will terminate at such time as Broker is no longer providing brokerage services to (seller) (buyer).”)

A telephone call made to determine a former client’s level of satisfaction, unless the call is part of a plan or scheme to encourage the former client to purchase more property, goods or services. (This type of call may be made by REALTORS® under these limited circumstances but requires caution – there is a risk of the call later being classified as a telephone solicitation if it is deemed to be part of a scheme or plan to sell.)

october 2009

•

A telephone call made to a party to an existing contract that is necessary to complete the contract. (This exemption may apply to calls a REALTOR® makes to the seller or the buyer regarding a listing contract or buyer agency agreement as long as care is taken to limit the conversation to tasks needed to fulfill the contract or agreement.)

For more information, visit the No Call REALTOR® Resource page at www.wra.org/ nocall. Kevin King is General Counsel for the WRA.

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Great Food. Great Shows. Great Education.

December 2, 2009 - Brookfield

Fulfill your 2009-2010 real estate continuing education requirements in style. Escape the winter weather and join the WRA in sunny Las Vegas, Nevada. Whether you enjoy the spectacular dining or try your luck at the many casinos, this is one educational opportunity you won’t want to miss. Choose from as many as six CE courses or electives and still have plenty of time to catch a show on the strip. You may even be able to write it off as a business expense (check with your tax accountant)!

Addendums, Disclosures and Disclaimers *Courses submitted for Wisconsin appraiser and assessor continuing education, as well as Minnesota and Michigan appraiser continuing education.

www.wra.org/appce

800-279wisconsin real estate magazine

october 2009

February 8-11, 2010 Radisson Paper Valley Hotel Appleton, WI

Statement of Ownership

n o i t a n EK g i E s e W D GREEN | R B A S| GRI | CR ns... io esignatiton! D y n a M ne Loca O

What is Designation Week?

According to the National Association of REALTORS®, designations can almost double your income in real estate. Whether you have a designation, want to earn more or are working towards your first one, Designation Week offers you an opportunity to take multiple courses in one week and make significant progress towards earning nationallyrecognized designations – all in one location. This year’s Designation Week will be held at the Radisson Paper Valley Hotel in Appleton on February 8-11, 2010. Get yourself on track to success by putting your education dollars to work at Designation Week.

This Year’s Designation Courses: GRI Course 2 February 8-11, 2010

Instructors: LeRoy Houser, CRS, Kevin King, Dan Kruse, Rob Uhrina, Doug Hoffman and Mark Porter, CRS

GRI Course 3 February 8-11, 2010

Instructors: Tom Lundstedt and Ed Hatch, CRS

CRS 201: Listing Strategies Included in GRI Course 2 February 8-9, 2010 Instructor: LeRoy Houser, CRS

CRS 202: Effective Buyer Sales Strategies Included in GRI Course 3

February 10-11, 2010

Instructor: Ed Hatch, CRS

Marketing with Microsoft Office (CRS Elective) February 8, 2010 Instructor: Pat Zaby, CRS

ABR Two-Day Required Course February 8-9, 2010

Instructor: Barb McGill, ABR, CRB, CRS, GRI, and SRES

Foreclosures and Short Sales: What Buyer’s Representatives Need to Know (ABR Elective) February 10, 2010 Instructor: David Sayas

New GREEN Designation Course (Also ABR Elective) February 9-10, 2010 Instructor: Sam Martin

GREEN Residential Elective Course February 11, 2010 Instructor: Sam Martin

wra.org/DesWeek

You may qualify for a Scholarship! GRI Scholarships are available to WRA members. Contact your local board/association, the Wisconsin CRS Chapter, the WRA or visit www.wra.org/GRIscholarship for application information. This year’s deadline is January 15, 2010.

Statement of Ownership, Management, and Circulation. Publication Title: Wisconsin Real Estate Magazine. Publication Number: 1096-9829. Filing Date: October 1, 2009. Issue Frequency: Monthly. Number of Issues Published Annually: 12. Annual Subscription Price: $5 Members, $60 Non-Members. Complete Mailing Address of Known Office of Publication: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 537047337. Contact Person: Rob Uhrina. Telephone: (608) 241-2047. Complete Mailing Address of Headquarters: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337. Full Names and Complete Mailing Addresses of Publisher, Editor and Managing Editor: Publisher, William Malkasian; Editor, Terry O’Connor; Managing Editor, Rob Uhrina; Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337. Owner: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337 (same address for all). Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None. Tax Status: Has Not Changed During Preceding 12 Months. Publication Title: Wisconsin Real Estate Magazine. Issue Date for Circulation Data Below: September 2009. Extent and Nature of Circulation (first number gives average number of copies of each issue during preceding 12 months; second number gives actual number of copies of single issue published nearest to filing date): Total Number of Copies (15,818; 15,518); Paid/ Requested Outside-County Mail Subscriptions (15,613; 15,313); Paid In-County Subscriptions (0; 0); Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution (0; 0); Other Classes Mailed Through the USPS (0; 0); Total Paid and/or Requested Circulation (15,613; 15,313); Free Distribution by Mail; Outside-County (30; 30); In-County (10; 10); Other Classes Mailed Through the USPS (0; 0); Free Distribution Outside the Mail (15; 15); Total Free Distribution (55; 55); Total Distribution (15,668; 15,368); Copies Not Distributed (150; 150); Total (15,818; 15,518); Percent Paid and/or Requested Circulation (99.6 percent; 99.6 percent); Publication Statement of Ownership: Publication Required. I certify that all statements made by me above are true and complete. Rob Uhrina, Managing Editor, September 30, 2009

Course Schedule

Visit wra.org/CourseSchedule for full schedule.

Sales & Marketing Management Date Course Location

*Plus books November 5, 2009 ** Early registration applies two weeks prior to the start of the course. ***Members of the Wisconsin CRS Chapter will January 13-14, 2010 receive a $20 discount. January 25, 2010 # Appraiser section members receive a discount. February 17-19, 2010

Positioning Properties to Compete in the Market (Staging) CRS Elective ABR 2 Day Core Course Short Sales & Foreclosures: Protecting Your Clients Interests (CRS Core 1-day class ) New Broker Training

Madison

195

215

Brookfield 260 Lac du Flambeau^ *195

270 205

290 225

Madison

325

345

Date Event December 9-10, 2009 January 25-27, 2010 February 8-11, 2010 March 1-3, 2010

Management Conference WRA 2010 Winter Convention Designation Week Out of State Ce

Pewaukee Lac du Flambeau Appleton Las Vegas, NV

Real Estate Continuing Education

Date

Course

Location

Pre-License * Plus books

October 13, 2009 October 14, 2009 October 14, 2009 October 14-15, 2009 October 15, 2009 October 15, 2009 October 19, 2009 October 21-22, 2009 October 22, 2009 October 22, 2009 October 22-23, 2009 October 29, 2009 November 3, 2009 November 4, 2009 November 5, 2009 November 10, 2009 November 11, 2009 November 12, 2009 November 12, 2009 November 19, 209 November 20, 209

2009-10 Courses 1 & 2 2009-10 Elective A 2009-10 Elective C 2009-10 Courses 1, 2, 3, & 4 2009-10 Electives C & E 2009-10 Courses 1 & 2 2009-10 Elective A 2009-10 Courses 1, 2, 3, & 4 2009-10 Courses 3 & 4 2009-10 Courses 3 & 4 2009-10 Courses 1,2,3 & 4 2009-10 Electives A & C 2009-10 Course 1 2009-10 Courses 3 & 4 2009-10 Courses 3 & 4 2009-10 Courses 3 & 4 2009-10 Electives A & C 2009-10 Electives C & E 2009-10 Electives A & C 2009-10 Courses 1 & 2 2009-10 Courses 3 & 4

315

Location

8:30 – 4:30 Green Bay 8:30 – 12:00 Sheboygan 1:00 – 4:30 Racine 8:30 – 4:30 Marshfield 8:30 – 4:30 Green Bay 8:30 – 4:30 Ripon 1:00 – 4:30 Racine 8:30 – 4:30 Wausau 8:30 – 4:30 Ripon 8:30 – 4:30 Manitowoc 8:30-4:30 Hudson 8:30 – 4:30 Ripon 1:00 – 4:30 Racine 8:30 – 4:30 Madison 8:30 – 4:30 Appleton 8:30 – 4:30 Green Bay 8:30 – 4:30 Madison 8:30 – 4:30 Appleton 8:30 – 4:30 Sturgeon Bay 8:30 – 4:30 Lake Geneva 8:30 – 4:30 Lake Geneva

Date Course Location October 12-15; 19--22

ATD

***189

Conference and Conventions

Now available online!

Early Reg.** $Reg.

Sales Pre-License Course 8:00 - 5:00 Madison

Early Reg.** 325*

920-739-9108 920-457-7908 262-554-3940 800-279-1972 $27/m; $35/nm 920-739-9108 920-294-6850 262-554-3940 800-279-1972 $27/m; $35/nm 920-294-6850 920-553-6227 651-772-6344 920-294-6850 262-554-3940 800-279-1972 27/m; $35/nm 920-739-9108 920-739-9108 800-279-1972 27/m; $35/nm 920-739-9108 920-743-9651 262-723-6851 262-723-685 $

Regular Reg.

325*

QuickStart sales training program

www.wra.org/QuickStartOnDemand

Sales Pre-License October 12-15 & 19-22, 2009

QuickStart On Demand

WRA Headquarters, Madison

The QuickStart program assists agents in learning the business of real estate. Courses focus on contract issues, agency relationships and negotiating strategies. The program is designed to help agents become confident in their practice as well as focused on their personal business plan. Completion of the QuickStart program (four days) and passing the exams fulfills the requirements for GRI Course 1. Visit: www.wra.org/QuickStartondemand

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-licensing course. Second, you must pass a state-administered exam. The WRA is offering an eight-day accelerated, 72-hour sales program on October 12-15 and 19-22, 2009 in Madison. For more information, visit: www.wra.org/SalesPL

wisconsin real estate magazine

october 2009

public affairs

2010 Wisconsin Elections By joe Murray

Governor Doyle retiring

Campaign Finance reform

For 12 years, advocates of campaign finance reform have been pushing legislation to publicly fund state political campaigns, regulate so-called “issue ads” prior to a primary or general election, and require full disclosure of all funding sources for political spending. With Democrats in complete control of state government for the first time in 26 years, their chance for success may have improved. Majority party Democrats are moving on two pieces of legislation: one is designed to regulate the way state Supreme Court races are funded, and the other is intended to restrict issue ad spending during peak election years. Senate Bill 40 would provide public funding (read taxpayer dollars) for qualified state Supreme Court candidates as well as additional funding if the candidate has money spent against him or her by a political third party. Senate Bill 43 would restrict the use of thirdparty issue ads 60 days before an election for any state office.

With his mid-August announcement that he is not running for re-election, Governor Jim Doyle significantly altered Wisconsin’s political landscape for next year’s elections. His decision to opt out of a possible third term opens up the list of potential candidates on the Democratic side for next year’s gubernatorial election.

Supreme Court races in Wisconsin have become increasingly partisan and expensive over the last 10 years. As a result, reformers seek to “insulate” Supreme Court candidates from the duties of raising money and other common elements of a statewide political campaign. Issue ad reformers, on the other hand, seek to reduce or eliminate third-party messages in campaigns and “take control” of their own message. They contend third parties have too much involvement in modern day elections and drown out the candidates themselves. These two bills represent the immediate priorities of the current leadership, but not their future wish list of campaign-related “reform” efforts. Watch for future Calls-to-Action on these issues. The Wisconsin REALTORS® Association is opposed to both bills.

Potential candidates include: Lt. Governor Barbara Lawton (already in the race), Milwaukee Mayor Tom Barrett, 3rd District Congressman Ron Kind from La Crosse, State Senate Majority Leader Russ Decker from Westin, Wisconsin Department of Commerce Secretary Richard Leinenkugel and Executive Director of the Wisconsin Counties Association Mark O’Connell.

Third Party watch

Doyle’s exit from the race means Democrats must move quickly if they are serious about running. Potential Democratic candidates were deferential to the governor out of respect to the incumbent, but now that he is out, they each need to maneuver for a position in a primary that will likely have multiple candidates.

The 2010 elections in Wisconsin may offer the kind of political environment in which a credible third-party candidate can emerge and alter the election outcome in a significant way. Why? Voters are extremely unhappy with both Democrats and Republicans, even if they direct more anger at the Democrats right now. This kind of environment has a way of producing independent third-party candidates that siphon off votes from the major parties and tip the election outcome.

Republicans, on the other hand, have been out of the governor’s office since 2003 and, as a result, have been organizing and gearing up for the 2010 gubernatorial election since 2006, when GOP candidate Mark Green was defeated by Governor Doyle. Serious Democratic candidates must work hard to catch up with GOP organization.

Wisconsin has a long history of third-party candidates doing reasonably well: Ross Perot in 1992 (22 percent in Wisconsin), Ralf Nader in 2000 (4 percent) and Ed Thompson in 2002 (11 percent). All three candidates lost big but had a huge impact on the eventual outcome. Perot hurt George H. W. Bush and helped the Assembly GOP pick up seven seats in 1992; Nader kept the race close in Wisconsin in 2000 and arguably kept Al Gore out of the White House (Florida); and Thompson may have cost Scott McCallum the governor’s race and helped Senate Republicans win their majority in 2002.

Republican gubernatorial candidates include: Milwaukee County Executive Scott Walker (already in the race), former First District Congressman Mark Neumann from Janesville (already in the race), Appleton businessman Mark Todd (already in the race), former GOP Senate candidate Tim Michels from Brownsville and Madison lobbyist Bill McCoshen.

wisconsin real estate magazine

Credible third parties can do well in Wisconsin under the right circumstances and those factors could be present in 2010. Joe Murray is Director of Political & Governmental Affairs for the WRA.

october 2009

news.wra.org

public affairs

and devoted a substantial amount of time counseling the group on both useful and not so useful ideas throughout the process. The task force remains in place in order to review additional information and possible future recommendations. Its report, released on September 9, 2009, included the following legislative as well as non-legislative recommendations.

Legislative Recommendations Mortgage & Foreclosure Education Standards In an effort to educate consumers on the risks and benefits of various mortgage options, require an overview of mortgage instruments, the risks and benefits of each, and the causes of home foreclosures to be incorporated into the model academic standards for personal financial literacy. Appraiser Licensure

Foreclosure legislation proposed

Speakers Task Force Recommendations Introduced By michael theo

A task force appointed earlier this year by Assembly Speaker Mike Sheridan has advanced recommendations for legislative and non-legislative programs designed to address the dramatic rise in home foreclosures in Wisconsin. The Wisconsin REALTORS® Association had representation on the task force and supports its report.

divorce and serious illness as the primary causes of foreclosures, but also reviewed the role of sub-prime lending practices and other financing-related causes. The task force held public hearings across the state, receiving testimony from affected individuals as well as housing and banking experts in Madison, Green Bay, Milwaukee, Baraboo and Eau Claire.

The task force was formed to investigate ways the state could constructively address the nearly 30-percent increase in Wisconsin’s foreclosure rate between 2008-2009. The task force correctly identified unemployment, wisconsin real estate magazine

The WRA was ably represented on the task force by REALTOR® Laurie Logan from the Madison area. Laurie brought her extensive experience and expertise to the task force,

october 2009

In an effort to address inaccurate and possible fraudulent appraisals, require all appraisers in Wisconsin to be licensed by the state. Wisconsin is one of only four states that do not require appraisers to be “licensed.” Abandonment Notification In an attempt to expedite the foreclosure process to minimize the length of time a property sits vacant, require a county clerk of courts to notify a municipal clerk when a home has been declared abandoned through the necessary judicial process. Fiduciary Duties of Mortgage Brokers In order to protect consumers seeking mortgage loans, require mortgage brokers to place their clients’ financial interests above their own, similar to what is required for real estate brokers. Foreclosure Legislation ... continued on page 22

Wra Launches facebook and youtube $8,000 tax credit videos The WRA has launched three final online video commercials to help you promote the $8,000 home buyer’s tax credit in the final days of the program. REALTORS® are encouraged to embed these videos into their Web sites or directly on their social media pages. Visit the Web sites below and follow the embed instructions to utilize these videos in your online marketing efforts.

Referrals Serving&Rhinelander Surrounding Communities

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Embed $8,000 video from the following networks:

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Wra.org/youtube

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Wra.org/taxcreditcommercials

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Foreclosure Legislation ... continued from page 21

Non-Legislative Recommendations Encourage Schools to Focus on Financial Literacy Recommend that school districts in Wisconsin be encouraged to focus on financial literacy issues and, where beneficial, encourage schools to partner with outside financial literacy organizations to educate students on personal financial issues including mortgage and foreclosure topics. Encourage Statewide Foreclosure Education Campaign Create a statewide foreclosure education campaign, including information resources available to the public, as well as past and future legislation to provide homeowner and renter protections. As part of this process, identify the Wisconsin Housing and Economic Development Authority as the central source of information and expand its current foreclosure education Web site. In addition, encourage legislators to incorporate foreclosure education into their public service announcements, newsletters and other communications with constituents. Study Issues of Lenders Abandoning Foreclosed Properties Recommend further study for solutions for instances in which lenders sue for foreclosure but then never take title. In these cases,

wisconsin real estate magazine

the original homeowner is left holding the title while under the impression the house is no longer his or hers. This also leaves municipalities with back taxes, fees and other related costs. Study Issue of Renter/Non-owner-occupied Foreclosures Recommend further study of the unique circumstances surrounding foreclosures of rental properties and procedures involving tenants. (The task force noted that legislation known as the Tenant Protection Act has already passed the Legislature earlier this year. See related article from Wisconsin Real Estate Magazine, May 2009, online at news.wra.org/ story.asp?a=1116.) Encourage Municipalities to Stay Informed of Local Foreclosures Recommend municipalities take steps to stay appraised of their local foreclosures by obtaining foreclosure notices from their local courts, which are available to the public prior to the abandonment proceedings.

Jo Baldridge, CRS, GRI, CHMS

october 2009

jo_baldridge@centurytel.net www.JoBaldridgeRealtor.com

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Dane County Robin Winistorfer MBA Becky Alexander 608-320-1410 608-669-SOLD (7653)

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The WRA will now work with legislative leaders in the drafting and introduction of the bipartisan recommendations for legislation. For further information, contact Michael Theo at mtheo@wra.org. Michael Theo is Vice President of Legal and Public Affairs for the WRA.

608-797-0337

Joe Schwalbach 262.366.1153

Relocation Specialist Not Your Average Joe!

jschwalbach@firstweber.com news.wra.org

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wisconsin real estate magazine

october 2009

www.PremierDoorCounty.com

public affairs

New Legislation Introduced to Help Struggling TIF Districts By tom larson

While much of the media attention has focused on the decline in the housing market, the national economic downturn has also negatively affected the commercial real estate market and a growing number of tax incremental districts (TIDs) across the state. To address this issue, Sen. Jim Sullivan (Wauwatosa) and Rep. Louis Molepske (Stevens Point) have introduced legislation (SB 291) that will provide local municipalities with more options for managing struggling TIDs.

Background Tax increment financing (TIF) is a public financing tool that uses future gains in taxes to finance public improvements, infrastructure and buildings to promote economic development in an area. Over the years, TIF has become one of the most important and effective economic development tools for Wisconsin communities. However, because of the downturn in the economy, tax increments within the TIDs have declined due to reductions in the value of existing property located within the TIDs, increased foreclosures of building projects within the TIDs and economic development projects being delayed or withdrawn due to diminished demand and new restrictions on financing. TIDs experiencing a decline in increment collection or the failure of projected increment to materialize may be unable to meet financial obligations that they have already incurred. In most cases, if a TID is unable to meet financial obligations, the taxpayers would be required to make up any shortfall in revenue. However, if taxpayers are unable or unwilling to satisfy the TID’s financial obligations, the community could go into default on loans, which could have significant impacts on the community, including increased future cost of credit, inability to obtain credit and/or a halt in economic development in the community.

Proposed Legislation To provide local communities with some additional tools to help prevent TIDs from going into default, SB 291 would do the following: •

•

Authorize communities to extend the economic life of an existing TID up to 40 years if the following conditions are met: ◦◦

the TID must demonstrate a gap between TID revenues generated and the debt service on obligations issued to finance TID project costs;

◦◦

the gap must be certified by the municipal clerk; and

◦◦

various procedural requirements must be met, such as holding a public hearing and obtaining approval from the city council/village board, joint review board and state Department of Revenue.

Expand revenue-sharing/pooling opportunities for such TIDs by authorizing: ◦◦

a donor TID to have a life that matches the recipient TID, but in no case longer than 40 years (a donor TID is a tax increment district that allocates positive tax increment [beyond what is necessary to pay its project costs in that year] to another TID [recipient TID] that is struggling to meet its financial obligations); or

◦◦

distressed TIDs, which are industrial or mixed-use TIDs, to be recipients of sharing/pooling amendments.

The legislation is supported by the Wisconsin REALTORS® Association, the League of Wisconsin Municipalities, the Wisconsin Economic Development Association, the Wisconsin Bankers Association and the Wisconsin Builders Association. For more information, please contact Tom Larson (tlarson@wra.org) at 608-241-2047. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA.

wisconsin real estate magazine

october 2009

news.wra.org

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SUCCESS Thereâ&#x20AC;&#x2122;s no denying the power of connections. Only one organization links top residential real estate professionals in a coast-to-coast network represented by three little letters. CRS delivers the education, resources and connections agents need to achieve their goals. Start your journey today at WWW.CRS.COM

FOCUS YOUR BUSINESS ON FORECLOSURES Low home prices, government incentives and the Wisconsin neighborhood advantage make it a great time for your customers to buy a home. The Wisconsin Neighborhood Advantage loan is available to buy foreclosed and vacant single family homes in Brown, Kenosha, Milwaukee, Racine, and Rock counties. n affordable 30-year fixed interest rate n Job loss mortgage payment protection

n Built-in financing for home repairs n several forms of down payment assistance

ELIGIBLE FIRST-TIME HOME BUYERS CAN USE THE FEDERAL HOUSING TAX CREDIT WITH THIS LOAN.* Home buyer education is required. income and purchase price limits do apply. For more information, call WHEda速 at 800.334.6873 or visit the real Estate professionals section at www.wheda.com. * Must purchase home by December 1, 2009 to eligible for the tax credit. Wisconsin Neighborhood Advantage is not funded by WHEDA Tax Exempt Mortgage Revenue Bonds. It is a limited time offering made possible by funding from the Wisconsin Department of Commerce and the Neighborhood Housing Services of America. Loans are available on a first-come, first serve basis. Wisconsin Neighborhood Advantage is the only WHEDA mortgage loan product that is available.

W i s co n s i n H o u s i n g a n d E co no m i c d E v E lo pm E n t au t H o r i t y 201 West Washington Ave n Madison, WI 53703 n 800.334.6873 n www.wheda.com