DR Legal News - Illinois REALTORS

JUNE
2010
D.R. Legal News
The Illinois real estate managing broker’s trusted source for
current legal, management and housing market issues
© Voronin76 | Dreamstime.com
in this issue
Distressed Properties P.2
Legal Case Studies P.9
Market Statistics P.12
Industry News Clips P.14
Discipline Cases P.15
D.R. Legal News is a
quarterly online publication
of the Illinois Association
of REALTORS® sent by
e-mail to the Designated
REALTOR® (D.R.) in 9,000
member real estate offices
statewide.
IAR LEGAL
HOTLINE
Illinois Designated
REALTORS® get exclusive
access to the IAR Legal
The Management of Distressed Properties
The topic of distressed properties has been a frequent subject for the popular
press over the last two years as well as programs and articles directed to the
real estate brokerage industry. This article focuses on management issues that
a brokerage company may have in dealing with distressed properties including
company policy, training for sponsored licensees, earnest money held in escrow,
forms, dual agency and exclusive listing agreements. Read more >
What are you telling agents to focus on after the tax credit?
In IAR’s latest Broker Sentiment Survey we heard from Illinois managing brokers who are encouraging their agents—post-tax credit—to emphasize the great
values in the market, stick to the basics, focus on low interest rates and that they
are increasing. Read more >
Hotline, a member’s only
resource featuring
telephone or email legal
assistance/information.
> 9 a.m. to 4 p.m.
> Monday through Friday
> 800-952-0578
See who among you is already enrolled in the Broker Involvement
Program. In this issue we include a list of brokers statewide who have already
signed up for this easy way to encourage their sponsored agents to act on Calls
to Action from the National Association of REALTORS® that affect YOUR
business...and YOUR agents’ livelihood. Read more >
> [email protected]
D. R . L e g a l N e w s | © I L L I N O I S A S S O C I AT I O N O F R E A LTO R S ®
Vi s i t u s a t w w w. i l l i n o i s r e a l t o r. o r g / D R l e g a l n e w s a n d s u b s c r i b e t o t h e b l o g w w w.IARbuzz.com.
The Management of Distressed Properties
by Steve Bochenek, IAR Legal Counsel
The topic of distressed properties has been a frequent subject for the popular
press over the last 18 months to two years. Distressed properties have been
even more discussed in articles, programs and seminars directed to the real
estate brokerage industry. What may have not received as much attention are
the management issues that a brokerage company may have in dealing with distressed properties.
This article is intended to focus upon some of those issues.
1. Company Policy
One of the key issues that a managing broker or sponsoring broker will need to consider is
whether the brokerage company is going to have any policies with regards to its sponsored
licensees handling of short sales and REO properties. Clearly, the Real Estate License Act of
2000 (“Act”) provides that the sponsoring broker is responsible for establishing pertinent policies for its sponsored licensees. This may well include certain issues relating to the handling of
distressed properties in compliance with the provisions of the Act.
Examples of the kinds of issues that may be handled in a policy on distressed properties
would be whether sponsored licensees should handle the listing of short sale or REO properties, whether all or just certain sponsored licensees are able to handle those listings, what is the
company’s policy with regards to a designated agent being a dual agent if a short sale property
or REO property is listed by the company, the handling of earnest money, and the handling of
offers with regards to short sale or REO listed properties. Obviously, there are a number of other
issues that can be addressed by the managing or sponsoring broker in a company policy but
these are examples of a few of those items. These policies will vary from company to company
based upon the internal company decisions as to whether or not the listing of these properties
makes business sense for the company as well as whether the sponsored licensees are sufficiently
trained to handle the listing and sale of these properties.
The failure to have a
policy or to provide
training or the
access to training
for sponsored
licensees may result
in disciplinary action
against a sponsoring
broker or, potentially,
its managing brokers.
2. Training for Sponsored Licensees
Another key point, once the company policy has been developed, is to determine how best to
make sure that your sponsored licensees are properly trained. Perhaps in-house training will be
used with regards to some of the issues that will be faced. Clearly, some in-house education will
be needed as to the provisions of the company policy. Another method may be to have sponsored licensees attend outside seminars dealing with distressed properties. Also, the company
may decide to appoint one or several people within the office to be the designated individuals to
handle all listings with regards to short sales and REOs. The key is not so much how the training
is done but that training is provided or made available with regards to dealing with distressed
properties.
The concern is that if the sponsoring broker does not have a policy with regards to distressed
properties or is not training or providing for the training of sponsored licensees in dealing with
distressed properties whether all of the clients of the company are receiving the services needed
with regards to the distressed property. The failure to have a policy or to provide training or the
access to training for sponsored licensees may result in disciplinary action against a sponsoring
broker or, potentially, its managing brokers.
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in the forms that are typically used in a
real estate transaction in your community. Examples might be in a short sale
situation when a provision is added not
to pay any earnest money on a transaction until the contingency is approved
by the lender. This would help the buyer
avoid issues with regards to monies held
in escrow. Another situation might be the
ability of a prospective buyer to opt out
of a short sale transaction if the lender’s
approval contingency is not satisfied
within a certain period of time. There
may be similar issues to be dealt with in
regards to an REO transaction.
The bottom line is that the company
needs to be aware of whether the forms
generally used in the community fit
those situations. If modifications may be
Short Sale Resources for IAR Members
needed then the company needs to adopt
www.illinoisrealtor.org/shortsales
a policy concerning referrals of clients
• Short Sale Checklist for Buyers
to attorneys for the drafting of language
• Short Sale Checklist for Sellers
that may be needed in a particular form.
• NEW! Distressed Properties Webinar
Real estate broker licensees should not be
modifying forms typically used in a real
• Links to HAFA guidelines
estate transaction within the community
• Short Sale Q&A from the IAR Legal Hotline
and this may become an issue in these
types of transactions. The bottom line
is that the brokerage company wants to
that in one situation, the short sale, the
In a short sale situation the mortgagor
avoid the sponsored licensees engaging
is typically the owner of the property
lender is not a party to the contract. In
in the unauthorized practice of law and
being listed. The lender, or mortgagee,
the second situation, the REO transachas no ownership interest in the property tion, the lender is a party to the contract, the potential exposure to the company for
such actions. Generally, if a sponsored
but would have a right to and needs to
either directly or through its asset manlicensee engages in such actions the broapprove the short sale transaction. Thus,
ager. Your policy should make clear to
in a short sale transaction the contract
the sponsored licensees when the earnest kerage company may be sued and held
can be signed between the owner and the money must be deposited in each of these to a standard of care of a law firm based
upon the actions of its sponsored licensee
potential buyer subject to approval of the situations.
and the drafting of language. Also, your
contract terms by the lender, or mortgagbrokerage company wants to make sure
ee. Since the contract is signed, subject
4. Forms
to contingencies, the earnest money must Another key issue, particularly in con- that your sponsored licensees are not just
taking forms from a seminar which may
be deposited in the escrow account by the nection with short sales, is the question
be perfectly fine in the state where the
next business day.
of whether the general forms used for a
speaker resides, and deciding to use those
transaction are sufficient in a short sale
In an REO transaction the lender, or
or REO situation. There are many differ- forms in Illinois.
mortgagee, is typically the owner, either
ent issues that may arise in these transacin its own name or through an asset
manager. As a result any contract for the tions which may not be directly covered
3. Earnest Money Held in
Escrow
There are several key issues mentioned
above that you will want to consider
in developing a company policy with
regards to distressed properties. The first
one that you need to deal with is earnest
monies to be held in escrow accounts.
There tends to be some confusion
between earnest monies received in connection with short sale transactions and
earnest monies received in connection
with an REO transaction. The Act and
rules do not change with regards to the
handling of these funds, but the nature
of the transaction changes and results in
some confusion.
purchase of that property will be with
that lender or asset manager. There is no
contingency for the lender to approve the
transaction since the lender is already the
party to the transaction, either directly
or through its asset manager. Thus, the
lender’s approval results when the lender
actually signs the contract. Thus, there is
no contract or transaction until the lender,
or its asset manager, actually signs the
contract. It is at that point that the lender
becomes bound by the contract. Thus,
the earnest money would be deposited
into an escrow account after the lender
approves of the transaction and actually
signs the purchase contract.
The difference between these two is
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5. Dual Agency
Another matter of consideration for the
brokerage company in establishing policies and training its sponsored licensees
will be whether they want sponsored
licensees acting as a dual agent in a
distressed property situation. This is
particularly a question in connection
with a short sale transaction in which the
ramifications of representing both parties may be particularly troublesome to
the seller of the property as the results
of the transactions may well impact the
seller’s ability to receive a release from
the lender in the transaction.
agent is also representing the buyer and
not able to provide the kinds of advice
that may be needed because of the
restrictions of the Act. For these reasons
the company ought to have a policy with
regards to short sales and dual agency to
make sure that the actions of the sponsored licensees do not put the company
in a difficult situation.
6. Dual Agency and Third
Party Investors or “Short
Sale Specialist”
Another issue that may be involved
in a dual agency situation is that of a
Free IAR Sample Office Policy Manual for D.R. Members
www.IARlicenselaw.org
Legal counsel for the Illinois Association of REALTORS® have fully updated the
IAR Sample Office Policy Manual per changes to the Illinois Real Estate License
Act of 2000 (Public Act 96-856). IAR believes that services such as this Sample
Office Policy Manual are not only vital to the successful practice of the real estate
business today but as of January 1, 2010, are required by the Real Estate License
Act.
Your state association is providing the IAR Sample Office Policy Manual in a downloadable Microsoft Word document (.doc) format free to every IAR Designated
REALTOR® member—an $84.95 value!
You can download the manual from www.IARlicenselaw.org, IAR’s Web site
designed to help IAR members understand the rewrite of the Illinois License Law
as well as deadlines for compliance.
Dual agency situations in a short sale
transaction are particularly troublesome
given that not only is the property distressed but the seller may also be distressed in connection with the sale of the
property and the property being underwater. The seller may be looking to their
designated agent to give them advice
concerning how best to proceed to put
the seller in the best situation possible.
This kind of advice becomes troublesome and problematic if the designated
third party investor or short sale specialist. The brokerage company ought to
develop policies with regards to use of
third party consultants or specialists in
connection with short sales and REOs.
There have been a number of fact situations which have arisen over the past 6
to 12 months in which parties identifying
themselves as short sale specialists have
offered to purchase short sale properties
on an option, using a trust or under some
other scenario.
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Typically, the scenario involves this
third party or short sale specialist having a contract with the seller contingent
upon this third party specialist negotiating an agreement with the lender for
the short sale. Typically the third party
specialist will not close on this purchase
from the short seller unless they find a
third party to purchase the property so
that the property can be flipped immediately after the third party or short sale
specialist purchases from the original
owner. Thus, gaining the approval of
the short sale is more dependent on the
ability to flip the property at a profit as
opposed to the lender actually approving the short sale.
Many times during this transaction
the short sale specialist will ask the
real estate broker to represent the short
sale specialist in regards to listing the
property for purposes of finding the flip
transaction. Thus, the initial designated
agent for the seller is also now becoming a designated agent of the short sale
specialist and the interest of the two may
not always mesh. This would particularly be the case in a situation in which
the initial owner may owe a deficiency
to the lender as a result of the short sale
negotiations and the short sale specialist ends up with a profit in the second
sale involving the property. Company
policy ought to deal with the question
of use of these third parties or short sale
specialists. A brokerage company may
want to have an individual to whom the
sponsored licensees may direct questions
regarding such situations and a further
policy regarding representing both the
original owner and the short sale
specialist in conjunction with the same
property. This may not be a dual agency
situation but still may place the sponsored licensee in a difficult situation
under the Act.
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7. Exclusive Listing
Agreements
Another topic for company policy would
be a discussion regarding the requirements
of the Act that any exclusive listing agreements, including those with owners of short
sale properties or with REOs, provide for
minimum services. The Act provides that
the listing agreement must provide for these
minimum services or the agreement will
not be considered as exclusive. Thus, if the
owner wants an exclusive brokerage agreement there will be a requirement for the
provision of these minimum services. Also,
there have been issues regarding alleged
lack of cooperation by listing designated
agents with buyer agents for short sale and
particularly REO properties. Such activity
would run contrary to the Act’s provisions
regarding minimum services. Further, there
may be issues regarding representation of the
best interests of the seller or violations of the
Code of Ethics.
The sponsored licensees need to know
their company’s policies with regards to
providing minimum services and also with
regards to cooperation with a buyer’s agent.
Remember that ultimately the designated
agent is responsible to the request of their
client. However, if those requests deviate from what is required by the Act or the
duties of a designated agent to the seller then
the designated agent ought to have those
instructions of their client in writing and in
your company files. This may become necessary to protect your company’s own interests
should there be future allegations of a violation of the Act.
These are a few of the key issues that your
company may be faced with in dealing with
distressed properties. The key is not so much
what your company’s policy is, so long as
it complies with the Act, but that your company have a policy in regards to handling
distressed properties and that your sponsored
licensees are aware of it and trained as may
be appropriate. n
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HAFA Short Sale
Guidelines Took
Effect April 5
On April 5, the federal Home
Affordable Foreclosure
Alternatives Program
(HAFA) went into effect
with the goal of accelerating short sales by providing
incentives and guidelines for
short sales and deed-in-lieu
of foreclosures.
Learn more from NAR,
www.realtor.org/government_
affairs/short_sales_hafa
> < > <
What are you telling agents to focus on
after the tax credit?
Here’s a sample of how Illinois broker managers are motivating their agents
post-tax credit from the April Broker Sentiment Survey conducted by the Illinois
Association of REALTORS®.
•
•
•
•
•
•
•
•
•
•
•
•
•
Stick to the basics, do not listen to negative media.
Get educated and keep up-to-date with current affairs.
Positive attitude; there is potential in every market.
Farm and contact your sphere.
Focus on low interest rates and the forecast that rates are increasing.
It’s still a great time to buy a house. Interest rates are low and it’s a buyer’s market.
Keep prospecting and price listings appropriately. There will still be people who need to buy
and sell.
Emphasis on great values.
Plan your business and work your plan.
Focus on consistent communication with the seller clients keeping them current on pending
and closed sale prices.
Keep plugging away, contacting former clients, pricing listings correctly, holding open houses
and going back to the basics.
Focus on the fact that property is extremely cheap compared to five years ago.
Stay positive and focus on historically low interest rates combined with aggressive pricing. n
Start CREATING Transactions
People are ready to buy again. According
to IAR Convention speaker Steve Harney of
KeepingCurrentMatters.com in his blogpost on
Catch Steve
Harney live
talking about current
market conditions and
www.IARbuzz.com.
negotiating strategies
• A recent Gallup poll reported that “lower but stabilizing home
for creating transactions
prices combined with continued low mortgage interest rates
at the IAR Convention
have persuaded 72% of Americans that now is a ‘good time’
to buy a house.”
• The Survey of Affluence and Wealth in America reported that
19% of the wealthiest people in America “say they are ‘in the market’ to acquire real estate.”
• And a Move, Inc. survey found “17.2% of potential home buyers today say they plan to purchase a home
in the near future as an investment compared to just 5.6% in March 2009.”
this Sept. 29 – Oct. 1 at
Pheasant Run Resort in
St. Charles.
www.illinoisrealtor.org/
convention
What is preventing these people from accomplishing their goals? FEAR! But let us realize that fear always
comes from ignorance. Fear is only the symptom. Once we can simply and effectively communicate the
reality of the market, we can easily point out the opportunities that exist and help these people accomplish
their goals. Let’s search out the people mentioned above and help them understand that the move they are
considering is not only possible but in the future will be profitable.
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Brokers, what are you waiting for?
Sign up for an easy way to encourage your sponsored agents to act
on Calls to Action that affect your business...and their livelihood.
by Neil Malone, IAR Local Government Affairs Director
The Broker Involvement Program (BIP) is an enormous breakthrough in how REALTORS® can
more effectively lobby their federal and state lawmakers through greater participation in legislative calls to action. The BIP provides broker-owners, and managing brokers the tools necessary
to inform their agents on important issues being debated, and the means by which to shape
legislative and regulatory policy. It also reinforces the status of the broker-owner as a resource
for their agents on important public policy matters by providing them with advanced notice on
important legislation before calls to action are issued.
It’s EASY...
and it works!
Research shows agents
are significantly more likely
to participate when they
receive the Call to Action
message from their broker.
Easy to participate + Takes very little time + Absolutely FREE
1.
2.
3.
Sign up online for the Broker Involvement Program at
www.realtoractioncenter.com/realtors/brokers/
NAR staff will contact you to verify your
information and obtain your company logo.
Enroll
today!
A higher participation rate
means that more elected
officials will be making their
legislative decisions with
REALTOR® input.
BOTTOM LINE: With more
When a federal broker Call to Action is issued, NAR will generate a personalized
email to your agents using your logo and branding. The email will be available for the
broker to review or decline prior to it being sent. NAR always gives enrolled brokers the choice
to participate in a broker Call to Action.
input from agents on the
If you have questions, please contact your IAR local governmental affairs director.
the real estate industry.
street, we have a better
chance to gain a policy decision or law that will benefit
Join these brokers already enrolled in the Broker Involvement Program:
@Properties, Chicago, Michael Golden
A & L Enterprise, LLC., Olympia Fields, Aaron Joiner
A to Z Realty, Joliet, Paulette Mangione-Korallus
All Pro Realty & Investments, Downers Grove, Dennis Secara
All Star Realty Group, Inc., Cary, Robert Straka
AM Realty, Glen Ellyn, Merlin Maliakkal
AMB Realty & Investment Resources, Lisle, Ahmed Badat
American Group Realty, Chicago, Grethel Hogg
Anthony J. Trotto Real Estate, Wood Dale, Anthony Trotto
Baird & Warner, Orland Park, Gailene Cowger
Baird and Warner, Chicago, Steve Baird
Beck Group Realty, Inc., Godfrey, Jenni Beck
Berkson & Sons, Ltd, Northbrook, David Berkson
Better Homes & Garden Real Estate, Oak Park, Richard Gloor
Bob Floss & Son Realty, LaGrange, Bob Floss
Botterbush and Associates, Godfrey, Kevin Botterbush
Brokers Unlimited Inc., Rockford, Cheryl Curtis Barmore
C. King Real Estate Company, Seymour, Carol Ann King
C.T. King Realty, Harvey, Matrie DeLeon
Celebrity Properties Inc., Chicago, Scott Schultz
Century 21 Alonzo & Associates, Lagrange Park, Loretta Alonzo
Century 21 Bagley & Associates, Decatur, Bob Bagley
Century 21 Danek Realty, Channahon, Terrence Danek
Century 21 Hallmark, Berwyn, Joseph Washick
Century 21 Hartmann, Collinsville, Douglas Hartmann, Jr.
Century 21 House Center Plus, Jerseyville, Robert Jones
Century 21 Kmiecik, Realtors, Chicago, John Kmiecik
Century 21 New Heritage, Hampshire, Lynn Klein
List provided
Century 21 New Heritage, Marengo, Lisa Rossow
by the National
Century 21 Pro-Team, Oaklawn, Chuck Dinolfo
Association of
Century 21 Realty Concepts, Effingham, Kevin Gouchenouer
REALTORS® as
Century 21 S.G.R. Inc., Chicago, Nancy Suvarnamani
of May 21, 2010
Century 21 Schaal & Associates, Vandalia, Keith Schaal
Charles B. Doss & Company, Oswego, Mike Drews
Chicago Exclusive Properties, Chicago John Kretchmar
Classic Realty Group, Orland Park , Adam Mendez
Coldwell Banker Brown Realtors, Edwardsville, Gerry Schuetzenhofer
Coldwell Banker Del Real, Cicero, Juan Del Real
Coldwell Banker Devonshire Realty, Peoria, Nancy Koch
Coldwell Banker Devonshire Realty, Washington, Thomas Harrington
Coldwell Banker Gladstone Realtors, Lisle, Heidi Bolger
Coldwell Banker Honig-Bell, Ottawa, Judie McConville
Coldwell Banker Honig-Bell, Morris, Andrew Cook
Coldwell Banker Leader Realty, Chicago, Earl Ruthman
Coldwell Banker Nester Realty, Belleville, Claire Leopold
Coldwell Banker Neuhaus Real Estate, Staunton, Marie Bartony
Coldwell Banker Premier, Rockford, Karl Gasbarra
Coldwell Banker Residential Brokerage, Deerfield, Carol Strauss
Coldwell Banker Residential Brokerage, Elmhurst, Douglas Carpenter
Coldwell Banker Residential Brokerage, Evanston, Yvonne Sito
Coldwell Banker Residential Brokerage, Barrington, David Rose
Coldwell Banker Residential Brokerage, Glenview, Gary Jensen
Coldwell Banker Residential Brokerage, Hinsdale, Nina Fotopoulos
continued on p. 8
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Join these brokers already enrolled in the Broker Involvement Program:
Coldwell Banker Residential Brokerage, Northbrook, Ian Robinson
Coldwell Banker Residential Brokerage, Lombard, Peggy Kozak
Coldwell Banker Residential Real Estate LLC., Oak Lawn, Joan Berngen
Coldwell Banker Winnetka South, Winnetka, Eve Bremen
Common Ground Properties, Chicago, Betty Clayton
Concept Real Estate Co., Inc., Columbia, Tari Jacobs
Conlon Real Estate, Chicago, Ruth Hernandez
County Line Properties, Hinsdale, John Bohnen
CR Strategies, LLC, Naperville, Chris Read
Dave Thompson Realty, Marion, Dave Thompson
Diamond Realtors Corporation, Berwyn, Griselda Hernandez
Dickerson & Nieman Realtors, Rockford, Frank Wehrstein
Dow Realty Inc., Joliet, Tim Brophy
Dynamic Real Estate Network, Inc., Montgomery, Evelyn Santiago
Ed Hadnott, Broker, Homewood, Edward Hadnott
Equity Fifty-Five Highland, LLC., Highland Ed Kleber, Jr.
ERA Caporale Realty Inc., Elmwood Park, Gabe Caporale
ERA Jensen & Feinstein Realty, Hinsdale, Linda Feinstein
Exit All Pro Realty, Chicago, Michael Clark
EXIT Real Estate Partners, Downers Grove, Tom Sailer
Field Street Properties, LLC., Lombard, Mia Micaletti
Ford Desired Real Estate Inc., Chicago, La Shawn Ford
Future Property Services, Inc., Oak Forest, Valerie Shalati
G.M. Smith & Son Realtors, Villa Park, Catherine Smith
Gambino Realtors HomeBuilders, Inc., Rockford, Jonathan Krause
Gloria Diaz Realty, Inc., Joliet, Gloria Diaz
Gold Realty Services, Ltd., Greenville, Barbara Smith
Goral Real Estate, Inc., Chicago, Anna Goral Griffith
Grant and Lackie, Lake Forest, Scott Lackie
Grojean Realty and Insurance, Jacksonville, Charles Grojean
Henderson Weir Agency Inc., Mackinaw, William Embry
Hoff, Realtors, Orland Park, Fred Hoff
Homes of America RE, Jerseyville, Pamela Roady
HRM Residential LLC., Oswego Helen Wittry
I.C. Solutions Realty, LLC., Homewood, Angela Allen
J.W. Reedy Realty, Ltd, Lombard, John Reedy
Jabez Real Estate, Inc., South Holland, Betty Jackson
Jay C. Realty Inc., Skokie, Jay Chandran
Jill Longoria, Woodridge, Jill Longoria
Jim Maloof / Realtor, Peoria, Michael Maloof
Joanne C Gross & Associates, Inc., Chicago, Joanne Gross
Karges Realty, Joliet, Jim Karges
KAZ Management & Realty, Oak Forest, Lakisha Watson
KDP Real Estate Corporation, Naperville, Kirankumar Kemmannu
Keller Williams Indy Metro West, Avon, Bruce Bright
Keller Williams Realty Lincoln Park, Chicago, Susan Swift
Keller Williams Realty Hyde Park, Chicago, Zeke Morris
Keller Williams Realty Partners, Park Ridge, Joseph Marella
Keller Williams Success Realty, Barrington, Cassie Hillinger
Kelly Hardin, Westmont, Kelly Hardin
Koenig & Strey Real Living, Chicago, Kimberly Quintana
Koenig & Strey Real Living, Glenview, Elaine Bykerk
Koenig & Strey Real Living, Northbrook, Darla Terrell & Bob Bush
Koenig & Strey Real Living, Wilmette, Doug Ayers
Krueger Realty, Plainfield, Angela Krueger
Lake Barrington Realty, Lake Barrington, Peter Consolo
Landmark Realty, Inc., Edwardsville, Robert Rohrkaste
Lizzadro Real Estate, LLC., Oak Brook, Louis Lizzadro
Lynn Madison, Realtor, Kildeer, Lynn Madison
Lyons-Sullivan Realty, Inc., Pontiac, Terrance Sullivan
M-G-M Realty, Inc., Skokie, Robert Green
Marilyn D. Glazer, Realtor, Skokie, Marilyn Glazer
McColly Real Estate, Tinley Park, Colleen Basinski
McColly Real Estate, Bourrbonnais, Ronald McColly
McGinnis Real Estate Group, Mokena, JoAnne McGinnis
Mel Foster Company, Kewanee, Mary Jo Slutts
Mel Foster Company, Inc., Geneseo Robert Fick
Midwest Investment Realty Corporation, Orland Park, Karen Engberg
Milestone Realty LLC, Highwood, Shelley Lurie
MisterHomes Real Estate, Palatine, Matt Hernacki
Naper Home Realty Inc., Naperville, Sandy Turnipseed
National Advantage Real Estate, New Lenox, Eleanor Nastepniak
National Realty Network, Barrington, Kris Keller
Nola Armento Realty, Downers Grove, Nola Armento
NRT, Bruce Zipf
continued from p. 7
Nugent Curtis Real Estate, LLC, Kankakee , Joseph Nugent
List provided
O.D. Neal Realty Associates, Crete, Ouida Drummond-Neal
by the National
Onorato Real Estate, Coal City, Michael Onorato
Association of
Option Realty Group, Naperville, Teresann Stoffer
REALTORS® as
Park Real Estate, LLC., Homer Glen, Kristopher Plencner
of May 21, 2010
Parker Family Realty, Inc., Naperville, Sherry Parker
Parker Global Realty, Inc., Flossmoor, Vicki Parker
Paula Childs Realty, Decatur, Paula Cooley
Platinum Partners Realtors, Downers Grove, Arlene Urban
Prairie Shore Properties, Inc., Evanston, Mary Summerville
Preferred Homes Realty, Elgin, Jeff Kellenberger
Preferred Real Estate of Illinois, Freeport, Cheri Frisbie
Prime Property Partners, LaGrange, Dean Rouso
Progressive Property Network Inc., O’Fallon, Whitney Wisnasky-Bettorf
Prudential Classic Properties, Jacksonville, James Pate
Prudential Crosby Starck, Realtors, Rockford, Jean Crosby
Prudential Elite Realtors, Naperville, Sue Vidmar
Prudential One Realty Centre, Granite City, Tammie Fleming
Prudential Rubloff, Evanston, Mary Ellen Tainer
Prudential SourceOne Realty, Hinsdale, David Hanna
Purple Realty, Inc., Peoria, John Purple
R.M. Post Realtors, Tinley Park, Dick Post
RBS Realty & Property Management, Chicago, Tracey Griffin
RE/MAX 2000, Crete, Susan Rossi
RE/MAX Advisors, Deer Park, Alice Scifo
RE/MAX All Properties, New Lenox, Leo Koulouris
RE/MAX Executive Plus, Decatur, James Cleveland
RE/MAX Experience, Sycamore, Thomas Skora
RE/MAX Great American North, St. Charles, Tim Binning
RE/MAX Horizon, Elgin, Ron Ewing
RE/MAX Plaza, McHenry, Rob Schaid
RE/MAX Professionals, Springfield, Ron Duff
RE/MAX Professionals South, Plainfield, Kita Liberatore
RE/MAX Results Plus, Inc., Jacksonville, Michael Oldenettel
RE/MAX Unlimited Northwest, Cary, Bill Flemming
RE/MAX Villager Real Estate Services, Inc., Glenview, Michelle Shoemaker
Real Estate Unlimited, Inc., Charleston, Janice Eads
Real Living, Harley Rouda, Jr.
Real Living Gobber Realty, Westchester, Michael Gobber
Realty Executives Cornerstone, Algonquin, Rick O’Connor
Realty Executives Elite, Lemont, John Budz
Realty Executives Excellence, St. Charles, Judy Cox
Realty Executives Fox Valley, Geneva, Jack Wallace
Realty Executives Midwest, Darien, Jana Pinc
Realty Executives Premiere, Wheaton, Patrick Callan
Realty Executives Prestige, Arlington Heights, Dana Hybl
Realty Executives Suburban, Bloomingdale, John Hybl
Realty World Caton & Associates, Plainfield, William Caton
Riverwalk Realty, Naperville, Skip Juckins
RK Merchant Realty Ltd, Glendale Heights, Kulsum Lokhandwala
Rosenboom Realty, Clifton, Roland Rosenboom
Ryan Hill Realty, Naperville, Jack Persin
Shelby Realty, Shelbyville, Bruce Steinke
SLB Realty, Inc., Tinley Park, Sharon Love-Bates
Smith Partners & Associates, Downers Grove, Coya Smith
Strano & Associates, Ltd., Belleville, Deanna Strano
Sudler Sotheby’s International, Chicago, Carla Martinucci
Supreme Manor Real Estate Services, Chicago, Sheila Wilkinson Sanders
The Hudson Company of Winnetka, LLC., Winnetka, Joanne Hudson
The Prairie Path Realty Company, P.C., Schaumburg, Leah Stetter
The Real Estate Group, Springfield, Mike Buscher
Top Realty Group, LLC., Rosemont, Iliana Dletcheva
Traders Realty, Peoria, Jeff Kolbus
Tri-State Realty and Development, Chicago, Gary Waldron
Universal Group, Bolingbrook, Carol Strader
US House Realty Inc., Lombard, Inga Sapalaite
Vandalia GMAC Real Estate, Vandalia, Sandra Michel
Vranas Ventures, Inc., Lincolnwood, John Vranas
Weichert Realtors - Lakeshore Partners, Evanston, Sandra Brown
Weichert Realtors - Nickel Group, Oak Park, John Lawrence
Wenzel Select Properties Ltd., Downers Grove, Lisa Wenzel
Wheatland Realty, Aurora, Nicole Tudisco
Whitehead Inc. Realtors, Belvidere, Kenneth Redeker
Worrell-Leka & Associates, Jacksonville, Allan Worrell
Zanger and Associates, Inc., Realtors, Quincy, Leo Zanger
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> < > <
Legal Case Studies
Plaintiffs who were displaced from
their home because of mold damage were not entitled to damages
for “inconvenience and discomfort” of being displaced. Mayer
v. Chicago Mechanical Services, Inc.
(2010 Ill.App.LEXIS 203, 2nd Dist.). The
Defendant had installed air conditioning
equipment in a condominium unit. Over
a period of time, mold accumulated and
caused the condominium resident who
had purchased the air conditioning unit
to vacate the premises and caused the
unit owners living below her to vacate
the unit while repairs were made. Both
sets of owners filed a claim against the
air conditioner installers alleging that
due to the negligence of the installation, they suffered “inconvenience and
discomfort” for the period in which they
were unable to live in their own homes.
The court held that although it might be
possible to recover damages for “inconvenience and discomfort” for being displaced, in some circumstances, the court
held that the Defendants did not properly
Spring Legislative Session Recap
By IAR Director of Governmental Affairs Greg St. Aubin
Below are highlights from the 2010 spring legislative session.
Learn more at www.IARActionCenter.org.
• Senate Bill 3747 was drafted and promoted by IAR. The bill halts in its
allege their “inconvenience and discomfort” because the Plaintiffs did not focus
on the practical effects and problems
from being displaced from their home
and instead focused on an “abstract
sense of satisfaction associated with
one’s home,” alleging, for instance,
damage for not being able to sleep in
their own bed or cook in their own
kitchen or eat at their own table. The
court held that, “In essence, Plaintiff’s
theory of damages is rooted more in the
sentimental attachment to their homes
than in the tangible comforts and conveniences of living in those homes.”
Sentimental attachment to a home was
not considered as a compensable damage. The Appellate Court upheld the
Trial Court’s dismissal of Plaintiff’s
claims against Defendant.
tracks a concept originated in California where a property developer
places a covenant on a development whereby all future homebuyers,
in every future transaction, would have to pay the original developer a
“transfer fee.” The bill bans these instruments in Illinois. The legislature trusted our call to nip this in the bud here, and voted overwhelmingly to pass the bill,
which is now on the Governor’s desk.
• Senate Bill 3180, as originally drafted, would have heaped a lot of unnecessary and
confusing regulation on even the tiniest of subdivision homeowner associations. The
chairman of the Senate Judiciary Committee and the House Republican leader looked to
IAR to help craft a balanced and workable approach. The bill was amended, passed, and
is now on the Governor’s desk.
• The IAR was the chief advocate for Senate Bill 3334, which provides that foreclosures
and short sales will be taken into account in reviewing and correcting property tax
assessments. These compulsory sales make up a huge part of the market in some
areas, and this legislation, which is now on the Governor’s desk, will provide some fairness and relief on the property tax side of this issue.
• House Bill 5409 would require title insurance companies to provide “closing protection”
coverage for their registered title agents to protect buyers and sellers against the acts
and omissions of those agents. Sounds good, right? Except that the legislation required
that the title companies collect from consumers a set fee for this protection. While the title
insurance industry lobbied hard for the mandatory fee, IAR objected to the state setting
mandatory fees on consumers in real estate transactions. In the end, the mandatory fee
was taken out before the bill was advanced.
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Municipality sued for property
damages cause by electric utility’s failure to properly provide electrical power; however,
the court determined that the
Commerce Commission should
be the primary jurisdiction for
the case to be heard. Village of
Deerfield v. Commonwealth Edison
Company (2010 Ill.App.LEXIS 328, 2nd
Dist. 2010). Residents of the Village of
Deerfield, the City alleged, were suffering frequent power outages and that
the power outages resulted in damage
to property, including basement flooding, mold growth as a result of basement
flooding and sump pump failures, and
spoilage of food and other damages.
The City sued Commonwealth Edison
on various counts including one count
seeking a class action on behalf of the
residents of the Village of Deerfield.
> < > <
County zoning ordinance, after the split,
the balance of the property from which
SMALL CHANGES MAKE A
each such lot is divided shall not be buildable for future residences. The DeKalb
Visit www.LiveGreenSaveGreen.com today to find
County officials approved the survey
easy-to-do cost-saving tips, discussion boards, videos,
splitting the land and the officials told the
book recommendations and much more. You can even
Hergemans to record copies of the survey
download our free guide filled with great information
with the DeKalb County recorder. The
on how to live greener and more responsibly.
Hergemans, however, never recorded the
www.LiveGreenSaveGreen.com | www.ahs.com
surveys. The county itself never recorded
the surveys. After the property was split,
the Hergemans sold the 53 acre tract to
Cech. In 2007, Cech sold the property to
Although the court decided that it did have Practices Act, a landlord would be required
the Plaintiff, James King. The Hergemans
to make written demand of the past-due
jurisdiction over the matter, it determined
never disclosed to King and King was not
rent and give the tenant at least 30 days to
that it should retain jurisdiction of the
aware that there was a restriction writdispute the amount in writing and provide
matter but send the case to the Illinois
ten on surveys saying that the property
Commerce Commission as the administra- other statutory requirements prior to filing
“is not buildable for future residences.”
tive body that has primary jurisdiction over a lawsuit to recover the past-due rent. The
The surveys with this restriction written
public utilities. In this ruling, the court did case has been somewhat criticized by comon them was never recorded, King never
not decide whether or not Commonwealth mentators because the court’s discussion
learned of it, and the Hergemans never
of the Fair Debt Collection Practices Act
Edison could be liable for damage to real
advised him of it. King then applied to the
was not necessary in order to decide the
property for mold and flooding, etc., but
Planning Department for a permit to build
case and because not everyone agrees that
the court held that the Village had made
a residence on the 53 acre parcel. The
the Act should apply in this set of circumproper allegations, that if proved, could
County denied the permit. Ultimately, the
warrant the award of damages to property stances. Nonetheless, the Third District
case made it to the Appellate Court where
Appellate Court is the only case to give
owners.
the Appellate Court ruled that because
any opinion regarding the application of
the surveys with the restriction written on
the Fair Debt Collection Practices Act to
The Third District Appellate Court
them were never recorded, and because
recovery of past-due rent, and its opinion
has ruled that landlords must
King had no other notice of the restriction,
is that the Act applies.
comply with the Federal Fair Debt
King was not bound by the restriction and
Collection Practices Act when
was allowed to build a residence on the
Ordinance which provided that split
attempting to collect past-due rent
property. The court relied on the Illinois
property once divided shall not
from a tenant. American Management
Conveyances Act which the court stated
be buildable for future residences
Consultant, LLC v. Carter, 392 Ill.App.3d
was intended to protect innocent purchaswas not a restriction that could
39 (3rd Dist. 2009). Since first reporting
ers. The Conveyances Act requires that
be enforced against a subsequent
on this case in the last issue of the D.R.
certain documents affecting real estate are
Exclusive, there has been much discussion purchaser of the split parcel who
to be recorded with the County Recorder.
had no notice of the restriction
over part of the ruling in this case that
The court held that the surveys were such
being imposed on the parcel. King
the court itself said was not necessary in
a document, and because they were not
v. DeKalb County Planning Department,
order to decide the case, but the matter of
recorded, the restriction was not effective
394 Ill.App.3d 699 (2nd Dist. 2009). In
“significant importance” and decided to
against King. n
address anyway. The court held that when 1999 the Hergemans owned a 63 acre farm
that had a home on it. They split the 63
a landlord is seeking to collect past-due
rent from a tenant, the landlord must com- acres into a 10 acre parcel that included
ply with the Fair Debt Collection Practices their home and a 53 acre parcel that had
no residence on it. Pursuant to DeKalb
Act. Under the Fair Debt Collection
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p. 10 | D.R. Le gal N e w s | J u n e 2 0 1 0 | © I L L I N O I S A S S O C I AT I O N O F R E A LTO R S ®
> < > <
Let IAR Be Your Guide
to the New Real Estate License Law
www.IARlicenselaw.org
Bottom Line: You have time!
This ticker shows how many days
are left to transition to the new
License Law categories of
broker and managing broker.
is your source for the latest news, requirements and instructional
videos related to the rewrite of the Illinois Real Estate License
Act of 2000, which took effect Dec. 31, 2009.
Look here for
recent additions to
the site and the
latest License
Law news.
Webinars & Podcasts
Preparing for the Transition
Education Requirements
PREPARING
FOR THE
TRANSITION
CE MATRIX
IAR has prepared an
at-a-glance chart to
help you understand
your continuing
education requirements and options.
Important Details
Learn the steps you
need to take to
change your license
category from salesperson to broker,
broker to managing
broker, and broker
choosing to stay
a broker.
NEW FORMS
Many contracts and forms have been
revised for the new License Law including
consent to dual agency, buyer representation, disclosure of contemporaneous
offers. Be sure to use the new forms!
WEBINARS &
PODCASTS
Look here for
quicklinks to the full
text of the new
License Law, FAQs
about licensure, dual
agency, advertising,
company policy,
new enforcement
and disciplines.
Don’t find your answer here?
Send us your question via e-mail!
Download informative videos by
IAR legal counsel on your
frequently asked questions, transition and CE requirements.
www.IARlicenselaw.org
Housing Statistics
Illinois
Forecast
Illinois First Quarter Home Sales Jump 23.5 Percent
Median Price Leveling at $144,600
“For the first
Buyers were out in force in the first quarter led by low interest rates and homebuyer tax
credits. According to the Illinois Association of REALTORS® (IAR) first quarter 2010 report,
Illinois home sales (which include single-family homes and condominiums) totaled 21,242 in
the first quarter, up 23.5 percent from 17,194 home sales in the same period a year ago. The
first quarter statewide median home sale price was $144,600, off 0.3 percent from $145,000 in
the first quarter of 2009.
“It’s clear the tax credit helped stabilize the housing market with sales trimming down
inventories and price declines moderating; notably, single-family home prices in the first
quarter were up 1.5 percent statewide from a year ago,” said REALTOR® Mike Onorato,
GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real
Estate in Coal City. “We anticipate strong sales numbers through June even with some urgency
removed after the tax credit. Low mortgage interest rates and affordable home prices should
continue to attract buyers.”
In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales
(single-family and condominiums) were up 36.7 percent in the first quarter of 2010 to 14,365
homes sold compared to 10,507 home sales in the first quarter of 2009. The region’s first
quarter 2010 median price was $175,500, down 6.4 percent from $187,500 in the first
quarter of 2009. n
time since
the recession
began, the
housing markets in Illinois
and the
Chicago region almost presented positive indicators across
the board in April,” said Dr.
Geoffrey J.D. Hewings, director of the Regional Economics
Applications Laboratory (REAL)
of the University of Illinois.
• Forecasts for May, June
and July 2010 indicate
sales increasing in Illinois
in the 13-24% range and in
Chicago in the 19-38% range
on an annual basis.
• Median prices in Illinois and
Chicago will move upward
in all three months, with
Market Perspective
Illinois’ prices in July exceed-
In the months immediately following the expiration of the tax credit we expect measurably lower
month will be 1.5% lower
sales…later in the second half of the year home sales will likely become self-sustaining if the economy can add jobs at a respectable pace and from a return of buyer demand as they see home values
stabilizing. – Economist Lawrence Yun, NAR Pending Index, 5/4/10
ing those for July 2009.
Chicago’s prices for that
than a year ago.
• With stronger signals that
the labor market might be
New home sales after April and existing homes after July are likely to experience some leveling off. At
responding to the recovery
that point the reviving economy, low mortgage rates, affordable house prices and new job growth will
from the recession, hous-
take over as the forces driving home-buying activity. – National Association of Home Builders, 5/5/10
ing sales may continue to
Two-thirds of Americans (65 percent) still prefer owning a home, despite the challenging economic
environment and the housing downturn. - Fannie Mae National Housing Survey, 4/6/10
increase.
• Housing inventories for sale
in Illinois and Chicago con-
Distressed homes, generally sold at discount, accounted for 35 percent of sales in March 2010.
tinue to grow faster than the
For all of 2009, distressed homes accounted for 36 percent of total sales. - NAR
sales recovery but the overall
Consumers’ concerns about current business and labor market conditions eased again (in April). And,
trend in time-on-the market
their outlook regarding business conditions and the labor market was also more positive than (March).
appears to have stabilized in
Looking ahead, continued job growth will be key in sustaining positive momentum.
the last three months.”
– Consumer Confidence Index, 4/27/10.
Moody’s economist Mark Zandi says the national unemployment rate should begin to level off at 9.9
percent in 2010, 8.5 percent in 2011 and 7 percent in 2012. Full employment is typically 5.5 percent.
NAR chief economist Lawrence Yun predicts two million jobs created this year and it will take six
> Find REAL forecasts at
www.illinoisrealtor.org/
membermarketstats.
years to return to normal, economic job creation. - NAR 2010 Midyear Meetings
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> < > <
IAR Quarterly Housing Sur vey by County
Interest Rates*
Total Home Sales 1Q 2010
County
Q1 2009
Q1 2010
%Change Q1 2009 Median Q1 2010 Median
% Change
ADAMS 121 131 8.3 % $93,750 $86,000 -8.3 %
BOONE 148 148 0.0 % $143,750 $125,000 -13.0 %
CHAMPAIGN 306 280 -8.5 % 140,000 $130,050 -7.1 %
CHRISTIAN 65 63 -3.1 % $67,500 $62,000 -8.1 %
CLINTON 44 61 38.6 % $118,250 $87,500 -26.0 %
COLES 74 71 -4.1 % $70,700 $74,000 4.7 %
6,027 8,582 42.4 % $186,000 $173,000 -7.0 %
-21.5 % $148,950 $144,750 -2.8 %
COOK DE KALB 158 DU PAGE 124 (www.freddiemac.com)
*average for the North Central
Region which includes Illinois
5.03 – 1Q10
5.12 – 1Q09
4.99 – 4Q09
Homeownership Rates
(www.census.gov)
1Q10 U.S. 67.1 Midwest 70.9 Illinois 68.1 1Q09
67.3
70.7
68.6
1,086 1,507 38.8 % $229,700 $220,500 -4.0 %
FRANKLIN 59 58 -1.7 % $38,400 $51,250 33.5 %
GRUNDY 81 82 1.2 % $151,500 $158,000 4.3 %
JACKSON 58 67 15.5 % $73,200 $108,000 47.5 %
KANE 581 900 54.9 % $168,000 $162,000 -3.6 %
KANKAKEE 260 261 0.4 % $116,000 $115,000 -0.9 %
KENDALL 245 280 14.3 % $207,500 $175,000 -15.7 %
Economist Geoff
86 92 7.0 % $44,800 $60,250 34.5 %
LA SALLE 155 184 18.7 % $91,000 $99,500 9.3 %
Hewings discuss
LAKE 896 1,201 34.0 % $185,000 $190,000 2.7 %
LEE 104 50 -51.9 % $77,500 $105,750 36.5 %
LOGAN 43 71 65.1 % $74,000 $47,900 -35.3 %
MACON 186 196 5.4 % $75,750 $75,000 -1.0 %
69 64 -7.2 % $78,000 $64,550 -17.2 %
503 525 4.4 % $97,500 $103,000 5.6 %
70 77
10.0 % $51,000 $55,000 7.8 %
MCHENRY 451 561 24.4 % $175,000 $161,000 -8.0 %
MCLEAN 320 338 5.6 % $152,000 $151,000 -0.7 %
MONROE 57 83 45.6 % $186,000 $165,000 -11.3 %
KNOX MACOUPIN MADISON MARION 65 98 50.8 % $135,000 $106,950 -20.8 %
PEORIA OGLE 348 401 15.2 % $99,250 $94,500 -4.8 %
ROCK ISLAND 198 224 13.1 % $88,625 $92,000 3.8 %
SAINT CLAIR 415 451 8.7 % $105,000 $105,000 0.0 %
SANGAMON 460 475 3.3 % $115,950 $120,000 3.5 %
76 72 -5.3 % $72,950 $90,500 24.1 %
TAZEWELL 269 312 16.0 % $117,000 $115,000 -1.7 %
VERMILION 108 90 -16.7 % $48,750 $43,700 -10.4 %
STEPHENSON WHITESIDE 171 93 -45.6 % $72,500 $74,000 2.1 %
WILL 982 1,128 14.9 % $180,000 $160,000 -11.1 %
WILLIAMSON 122 121 -0.8 % $92,250 $82,000 -11.1 %
WINNEBAGO 683 624 -8.6 % $100,000 $100,250 0.3 %
WOODFORD 48 53 10.4 % $137,500 $114,000 -17.1 %
Chicagoland PMSA 10,507 14,365 36.7 % $187,500 $175,500 -6.4 %
Total 21,242 23.5 % $145,000 $144,600 -0.3 %
17,194 Audio podcast: Listen to
2nd Quarter 2010
Illinois forecast for home
sales and median prices.
www.illinoisrealtor.org/iar/market
stats/market_statistics.htm
Only counties reporting 50 or more sales in 1Q 2010 appear in the chart above.
Get the full report at www.illinoisrealtor.org/membermarketstats.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census
Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
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> < > <
Industr y Newsclips
IAR Calendar
Download “9 Facts” about the Illinois Housing Market. With the tax
credit deadline passed, IAR updated its consumer handout “9 Facts You Should Know About
Today’s Illinois Real Estate Markets,” highlighting why it pays to own versus rent and why
housing is still a good investment. Find it at www.YourIllinoisHome.com.
www.illinoisrealtor.org
HouseLogic Free Resources for Members. Check
out the free tools and web content from www.houselogic.com, the
new consumer site by the National Association of REALTORS®.
Public Awareness Campaign Update
In May the NAR Public Awareness Campaign began
airing television, radio and print ads for their new
campaign, “What Matters Most,” to remind homeowners,
Look for details at
August 5-6, NAR Leadership
Summit, Chicago
September 27, Real Estate
Educational Foundation Golf
Outing, Pheasant Run Resort,
St. Charles
September 27 - 29, IAR
Business Meetings, Pheasant
Run Resort, St Charles
September 29 - Oct 1, IAR
Annual Convention, Pheasant
Run Resort, St Charles
buyers and sellers that homeownership is the foundation of
the American Dream and REALTORS® are there to help.
REALTORS® can add banner ads to their Web sites and
learn more from www.realtor.org/pac.nsf/pages/whatmattersmost.
NAR/IAR members should know the Public Awareness Campaign will continue in 2011 with the funding
level remaining at $35 per member. How is the campaign working? The 2009 consumer survey results
reveal that many measures are now at all-time highs, indicating that the campaign is a powerful tool for
reaching and persuading consumers of the value of homeownership and using a REALTOR® when
buying, selling or investing in real estate. Some key findings:
• Eight out of 10 consumers surveyed believe that owning a home is an investment in your future.
• Seven out of 10 consumers said the Public Awareness Campaign ads made them feel more confident
about the housing market and buying a home.
• Nearly nine out of 10 consumers surveyed strongly agree that the real estate market varies by location.
• More than seven out of 10 potential buyers and sellers said they would be more likely to use a REALTOR®
in their next transaction than they would to work with an agent who was not a member of NAR.
• Only 15 percent of consumers plan to buy or sell a home without professional assistance—that’s an
all-time low, down from 25 percent in 2001.
October 19-20 - IAR Leadership
Conference, East Peoria
November 3-8, REALTORS®
Conference & Meetings, New
Orleans
November 29-December 2, GRI
Institute, Bloomington
December 1-2, GRI GRAD
Course, Bloomington
Homebuyer Tax Credit Still Available to U.S. Service Members. When
the homebuyer tax credit was expanded and extended last year, members of the uniformed services, Foreign Service and employees of the intelligence community serving outside the United
States were given an extra year to qualify for the credit—on or before April 30, 2011. Learn
more from www.IRS.gov.
Right Tools/Right Now Ends in 2011. Be sure to take advantage of the free and
discounted member downloads, training and research available from the National Association
of REALTORS® Right Tools Right Now program throughout the year as this program ends in
2011. www.realtor.org/prodser.nsf/righttools/toolshome?opendocument.
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> < > <
Industr y Newsclips continued
Need CE?
Missed the Broker Renewal Deadline? Brokers who missed the renewal
deadline will not be able to practice until their license is renewed and issued by the Illinois
Department of Financial and Professional Regulation (IDFPR). If you were unable to complete
continuing education requirements prior to the April 30 deadline, you can still renew as soon as
you complete the required CE but will have to pay the $50 late fee. Learn more from IDFPR,
217-782-3414 or www.idfpr.com.
ease with IAR’s online, home
REEF Golf Outing
for June through September
Enjoy a beautiful day of golf at Pheasant Run Resort and help raise
money for the Real Estate Educational Foundation, which provides
scholarships for college-level students and continuing education support
Get your CE taken care of with
study and classroom options at
www.illinoisrealtor.org/
education, and use the handy
CE Lookup tool to get your
current stats. Classroom topics
include:
• Short Sales & Foreclosures:
What Every Agent
Needs to Know
to real estate professionals. Early-bird registration deadline is July 27,
• Land 101
$95/player and $386/foursome. Learn more at www.illinoisrealtor.org/
• Senior Real Estate Specialist
convention.
• The Code of Ethics:
It’s Good Business
IAR Annual Report, Programs & Services. IAR continues to keep housing issues on the forefront of legislation action at the local level, at the State Capitol and in
Washington, D.C., as well as provide our members with valuable free tools, resources and education. To view the 2009 IAR Annual Report and the 2010 IAR Member Programs & Services,
see www.illinoisrealtor.org/files/IllinoisREALTOR/2009annualreport.pdf.
• Will the Defendant
Please Rise?
• Green Designation
Core Course
Discipline Cases
Following are recent disciplinary actions taken by the Real Estate Division of
the Illinois Department of Financial and Professional Regulation, www.idfpr.com.
> Many real estate broker licenses were placed in refuse to renew status for failure to fulfill
continuing education requirements.
> Several real estate broker licensees were fined up to $950 for filing a renewal application
and, after results of Division’s audit, they did not complete the required continuing education
requirements.
> A real estate broker licensee was fined $1,000 for practicing on an expired license.
> A real estate broker license was indefinitely suspended for failure to file and/or pay Illinois
state income taxes.
> A real estate appraisal license was placed in refuse to renew status due to unlicensed practice.
> A real estate salesperson license was revoked and fined $5,000 due to unprofessional conduct, misleading and untruthful advertising, representing a broker other than respondent’s
sponsoring broker, and failure to cooperate with a Department investigation.
> A certified general real estate appraiser licensee was fined $10,000 for erroneously, inappropriately and failing to exercise reasonable diligence in developing an appraisal report.
> A certified general real estate appraiser license was automatically and indefinitely suspended
for nine months for violating the terms of his consent.
> An associate real estate appraiser license was placed in refuse to renew status for fraudulently affixing the name of another appraiser on a report. n
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> < > <
D.R. Legal News
JUNE
2010
WE’D LIKE TO
HEAR FROM YOU
> <
IAR Convention Line-Up
Send comments
and story ideas to
> i arnews @iar.org
Don’t miss this excellent education and CE value of the IAR Convention—just
$125, which includes up to 6 hours of continuing education.
www.illinoisrealtor.org/convention.
© Copyright Illinois
A s sociation of REALTORS ®
5 2 2 South Fifth Street
P. O. Box 19451
S p ringfield, Illinois
• “Inspiring Greatness: What it means to
be a REALTOR®” with Steve Harney of
KeepingCurrentMatters.com
• “You Snooze You Lose: Trends to Take
6 2 794-9451
Your Business to the Top in 2011” –
Bernice Ross, CEO of RealEstateCoach.
2 1 7/52 9-2 600
FAX 217/529-3904
com and Inman News columnist.
• Legal Issues: Risk Management Remix
www.illinoisrealtor.org
www.IARlicenselaw.org
www.YourIllinoisHome.com
www.IARbuzz.com
for Today’s Market –
CE instructor Lynn Madison, ABR, CIPS,
GRI, SRES (COR 1606, Core B)
• Technology Applications in Real Estate – CE instructor Kevin Stahle, GRI (TEC 1711)
find us on
• Positional Marketing for Maximum Exposure – Lynn Madison
> f acebook.com
• Social Media: Power Prospecting and Renewing Referrals – Tech expert Doug Devitre
> t witter.com/ILREALTOR
• The 7 Critical Wake-Up Calls About Today’s Market You Don’t Want To Miss –
> l inkedin.com
Trainer Kim Daugherty
THE KEY TO TOMORROW IS IN YOUR HANDS.
Illinois REALTORS® Political Action Committee (RPAC) makes
contributions to political candidates who have the real estate industry’s
best interests in mind. By helping to elect pro-real estate candidates
from both major parties, REALTORS® gain direct access to the legislative
process and greater influence on decisions that affect their business. As
one of the largest political action committees, RPAC participates in over
90% of state legislative contests.
UNLOCK IT.
Secure your future in real estate by donating to RPAC.
www.iaractioncenter.org
RPAC Contributions, either state or federal, are not deductible as charitable contributions for federal income tax purposes. Contributions to RPAC are
voluntary. Refusal to contribute does not affect membership rights. All personal contributions will be credited to the IAR Federal PAC and will be charged
against your contribution limits under 2 U.S.C.441a. All other contributions will be credited to Illinois RPAC. Copies of reports for Illinois RPAC are filed with
the State Board of Elections and are (or will be) available for purchase from the State Board of Elections, Springfield, Illinois.