maryland realtor - Maryland Association of Realtors

Transcription

President’s Perspective
Steve Meszaros
MAR will soon unveil our redesigned consumer website, a user-friendly
Our Annual Conference in Ocean City is September 13-15. We’re extend-
site with information on every aspect of buying, selling and maintaining
ing early bird registration to July 5. This year we have an exceptional
a home in Maryland. Consumers will find useful information about
line-up of classes and events. Challenging markets are the ideal time to
programs and initiatives that are Maryland specific, as well as links to
renew your networks, learn new ways to grow your business and find out
the NAR new Houselogic website.
the newest ideas in the industry. Can’t make it to all three days? We
have both a “Monday and Tuesday Only” registration. Register Now:
Economic Forecast
www.mdrealtor.org.
The economy continues to gather momentum, as does Maryland’s
housing market. Anirban Basu, CEO of Sage Policy Group, writes about
our market and how we compare regionally and nationally in a special
feature beginning on page 12.
The 2010 Legislative Session
Read about REALTOR® Legislative successes on the bulletin board
beginning on page 7. Vice President of Government Affairs Bill Castelli
summarizes the bills considered by this year’s Maryland General
Assembly and how they affect us. Are you a “leader of the PAC?” Look
for your name on the RPAC list of contributors—if it’s not there,
invest now. There is a convenient online auto-fill contribution form at
www.mdrealtor.org under Government Affairs/RPAC.
M A R Y L A N D R E A L T O R ® June/July 2010
3
June/July 2010
!
r
a
e
Y
a
What
7
Features
7 What a Year! MAR 2010 Legislative Successes
12Economic Forecast
Recovery Revs Up
12
table of contents
16Conference Registration
Win Big in Maryland Real Estate
22 Homeownership Highlights
Smooth Sailing Anyone?
26REALTORS® Political Action Committee of Maryland
Leaders of the PAC: 2009 Edition
Departments
26
3 PRESIDENT’S LETTER
5 MAR 2010 LEADERSHIP TEAM
32 COMMISSIONER’S CORNER
Commission Considers New Law and Regulations
33MARYLAND REAL ESTATE COMMISSION NEWS
Continuing Education and Teams Legislation Passed by
General Assembly
34Snippets & Industry Tips
38
4
35RESIDENTIAL SALES
Old Habits are Hard to Break – Long-Established Trends
Remain in Place
38FROM THE HOTLINE
New Approach to Broker Compensation
2010 Maryland Association
of REALTORS® Leadership Team
Maryland Association of REALTORS®
200 Harry S Truman Parkway | Suite 200
Annapolis, MD 21401-7348
800.638.6425 | www.mdrealtor.org
Steve Meszaros
Cathy A. Werner
President
Long and Foster Real Estate, Inc.
802 Landmark Drive, Suite 111
Glen Burnie, MD 21061-9121
410.969.1005
Fax 301.694.4929
[email protected]
President-Elect
RE/MAX American Dream
9414 Belair Road
Baltimore, MD 21236-1504
410.529.7900
Fax 410.529.7906
[email protected]
Executive Leadership Team
Steve Meszaros | President
Cathy A. Werner | President-Elect
Patricia A. Terrill | Secretary
Carlton J. Boujai Jr. | Treasurer
Iona C. Harrison | Immediate Past President
Mary C. Antoun | Chief Executive Officer
Editor
Deborah L. Hager | [email protected]
Advisory Committee
Lee Hatfield | Chair
Ken Montville | Vice Chair
Advertising & Publication Design
Patricia A. Terrill
Carlton J. Boujai Jr.
Secretary
Prudential Carruthers REALTORS®
7500 Coastal Highway
Ocean City, MD 21842-2937
410.524.7000
Fax 410.524.5695
[email protected]
Treasurer
Exit Realty Prosperity Group
5300 Westview Drive
Suite 105
Frederick, MD 21703-8339
301.698.8700
[email protected]
Art Comp & Design
Alison Cooper | Senior Designer
1921 York Road, Timonium, MD 21092
410.252.4027 | www.acd1.com
Mission Statement
The Maryland Association of REALTORS® exists to support all segments
of its membership and their specialties. The Maryland Association of
REALTORS®, through collective efforts with local boards/associations
and the National Association of REALTORS®:
■ Develops and delivers programs, services and related products that
maintain and elevate the high standards of the real estate business
and the professional conduct of its practitioners;
■ Assists members in ethically and professionally serving the public;
■ Promotes and preserves the right to own, transfer and use real
property; and
■ Protects the right of members to conduct business within a framework
of fair and reasonable laws and government regulations.
In principle and in practice, the Maryland Association of REALTORS®
values and seeks diversity and inclusive participation within the field of
real estate and recognizes each member as a unique individual.
Iona C. Harrison
Mary C. Antoun
Immediate Past President
Pioneer Realty Inc.
7917 Declaration Lane
Potomac, MD 20854
[email protected]
Chief Executive Officer
200 Harry S Truman Parkway, Suite 200
Annapolis, MD 21401-7348
800.638.6425
[email protected]
Maryland REALTOR® (USPS 0016-017) is published bimonthly by the Maryland Association of REALTORS®,
200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and
additional mailing offices. Postmaster send address changes to: Maryland REALTOR ®, 200 Harry S
Truman Parkway, Annapolis, MD 21401-7348.
Member subscriptions of $3.81 are paid with annual dues.
This publication is designed to provide accurate and authoritative information regarding the subject
matter covered. It is offered with the understanding that the publisher is not engaged in rendering
professional advice. If legal advice or other expert assistance is required, the services of a competent
professional should be sought. Articles that appear in Maryland REALTOR® are an informational service
to members. Their contents are the opinions of the authors alone and do not necessarily represent those
of the Maryland Association of REALTORS®.
Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing.
Also include purpose for request.
While this magazine makes a reasonable effort to establish the integrity of
its advertisers, it does not endorse advertised products or services unless specifically stated. ©2010 Maryland Association of REALTORS®, Inc.
5
Affordable housing
and taxes
!
r
a
e
Y
a
t
Wha
2010
HB 244 – Tax Compliance
and Administration Act
of 2010
STATUS: DEFEATED
Among other provisions, HB 244 would
have required a tax withholding for Maryland
residents when the net proceeds of sale exceed $250,000.
The withholding rate would have equaled 3% plus the top
marginal state income tax rate (6.25% currently), and
applied to proceeds exceeding $250,000. If the property
was a homeowner’s principal residence, the withholding
rate would apply only to proceeds exceeding $500,000.
sses
e
c
c
u
S
e
v
i
t
a
l
s
i
Leg
mplished all of its
AR) successfully acco
®
®
tion of REALTORS (M
26,000 REALTOR
The Maryland Associa for the 90-day session. Maryland’s sulted in such
ities
efforts re
top legislative prior
that their legislative
g
in
ow
kn
ide
pr
ke
members can ta
ion taxes in short
transfer and recordat
positive outcomes:
al
ion
dit
ad
m
fro
rs
buye
• s aving home
Maryland;
sales;
fees from starting in sts for Critical Areas
r
fe
ns
tra
te
iva
pr
g
• prohibitin
out-of-pocket co
sands of dollars in ptic system;
• saving thou
g
operty fees
place a failin se
homeowners who re commercial business from additional pr
d
an
rs
ne
ow
• saving home
gement;
al property
for stormwater mana money by switching them to semiannu erest on
s
se
d earn int
busines
• s aving small they can better manage cash flow an
tax payments so
recognition
their money; and
on and statutory
cti
re
di
ar
cle
s
am
estate te
• giving real
.
law
r
de
un
that affect property
the bills considered te licensing. Note that
of
HB 869/SB 780 – Affordable
y
ar
mm
su
a
is
Here
esta
Housing Land Trusts
te contracts, and real me effective.
ta
es
al
re
ip,
rsh
ne
ow
fore they beco
be
ls
STATUS: PASSED – Effective October 1, 2010
bil
n
sig
st
mu
the Governor
HB 999/SB 686 – Stormwater Management Fee
STATUS: DEFEATED
Would have required all local governments in Maryland to levy a
stormwater management fee on all residential and commercial property.
Though the legislation never specified what rate a local government
would have to charge, it required locals to set the commercial rate
higher than the residential rate, and to base it on the commercial
property’s impervious surface. The bill would have taxed all property,
even property that did not produce stormwater runoff.
HB 199/SB 520 – Homestead Property Tax
Credit – Federal Government Employees
STATUS: PASSED – Effective June 1, 2010 for tax years
beginning after June 30, 2010
Extends the Homestead Property Tax Credit to federal employees
stationed outside Maryland for a period not exceeding 6
consecutive years. When homeowners move back to Maryland,
they may reclaim the credit, which will be calculated as if the
credit had not been lost during the out-of-state residency.
HB 590/SB 657 – Taxation of Forgiven Debt in
Short Sales
STATUS: PASSED – Effective upon Governor’s signature
Clarifies that recordation and transfer taxes may not be imposed on
forgiven debt in short sale transactions. Three counties (Anne Arundel,
Prince George’s and Montgomery) began levying recordation taxes on
forgiven debt in short sales at the end of 2009. MAR sought an opinion
from Attorney General Doug Gansler regarding this practice. The
Attorney General confirmed in his opinion that recordation taxes cannot
be levied on the forgiven debt. HB 590/SB 657 strengthens this opinion
and makes clear that the prohibition applies to transfer taxes as well.
Authorizes affordable land trusts in
Maryland. Permits land trusts to purchase
and develop land and enter into land trust agreements
with low to moderate income home purchasers. The
agreements permit the land trust to sell property below
market price. A land trust agreement must be provided
to a prospective purchaser at least 15 days before the
purchaser enters into a purchase contract for land trust
property. Any purchaser who fails to receive this
information may rescind the purchase contract. There are
over 160 different land trusts in 38 states across the
country.
ition of Private
HB 1298/SB 666 – Prohib
Transfer Fees
Governor’s signature
STATUS: PASSED – Effective upon the
residential property from
Prohibits developers and sellers of
the sale of residential
on
fee
sfer
imposing a private tran
, private transfer fees are
property. Similar to a ground rent
restriction that requires a
deed
year
typically created as a 99
r of the property every
buyer to pay a fee to the original selle high as 1% of the as
be
can
Fees
.
time the property transfers
.
price
purchase
urt Real Property
SB 220 – Circuit Co
t Fund
en
em
ov
Records Impr
ED
EAT
DEF
:
STATUS
able
surcharge on each record
Would have doubled the
ted
por
sup
has
R
MA
ugh
Tho
).
instrument (from $20 to $40
e
wer
ds
fun
e
past becaus
surcharge increases in the ords Improvement Fund,
Rec
ty
dedicated to the Real Proper
merely replaced
this legislation would have
d for
money taken out of the fun
ons.
rati
ope
nt
general governme
HB 1349 – Homeowner’s Property
Tax Credit – Assessment Limit
STATUS: PASSED – Effective June 1, 2010 for tax
years beginning after June 30, 2010
Increases the maximum property assessment used
in calculating the homeowner property tax credit
from $300,000 to $450,000, and provides a costof-living adjustment in future years.
HB 1266 – Income Tax – Homebuyer
Tax Credit
STATUS: NOT PASSED
Would have enacted a state homebuyer tax credit against
state income taxes for homebuyers and homeowners in
Maryland. The legislation would have permitted a credit
for 1% of the purchase price up to a maximum of $5,000
for new homebuyers, and 1% of the purchase price up to
a maximum of $3,000 for move-up buyers.
SB 683 – Property
Taxes – Bicounty
Commissions
STATUS: PASSED – Effective
June
beginning after June 30, 201 1, 2010 for tax years
0.
Applies the homestead tax
cre
imposed by bicounty commis dit to property taxes
sions such as the Parks and
Planning Commission in
Pri
Montgomery Counties. While nce George’s and
principal homeowners are
generally protected from
large
taxes, principal homeowner increases in property
s sub
levied by bicounty commission ject to property taxes
s were not protected from
increases in Commission pro
perty taxes until this bill
passed.
7
Real estate Brokerage and contracts
ice – 60 Day Appeal
HB 6 – Property Tax – Not
2010
1,
ber
STATUS: PASSED – Effective Octo
to contain a notice informing the
sale
of
racts
cont
l
entia
resid
Requires all
tax assessment of the property
the
e
leng
buyer of his/her right to chal
ract must contain a statement in
within 60 days of purchase. The cont
wing: “If any real property is
follo
the
as
substantially the same form
re the beginning of the next taxable
transferred after January 1 and befo
may submit a written appeal as to
er
own
year to a new owner, the new
re 60 days after the date of the
a value or classification on or befo
transfer.”
HB 456 – Homestead
Exemption – Bankruptcy
STATUS: PASSED – Effective
October 1, 2010
Increases the bankruptcy homestead
protection from $5,000 to the federal
homestead amount of $20,200.
wledge
HB 42 – Appraisers – Kno
ate
Est
l
Rea
of
ue
Val
of
STATUS: DEFEATED
appraisers
Would have prohibited real estate
appraiser
the
if
l
aisa
appr
an
from conducting
erty being
prop
the
of
price
ng
aski
the
knew
appraised.
ns
hway Administration - Sig
HB 216/SB 779 – State Hig
STATUS: NOT PASSED
in a
any person unlawfully posting a sign
Would have imposed a fine against
g
udin
(incl
s
sign
post
to
al
illeg
dy
alrea
is
it
state highway right-of-way. Although
have
ld
wou
n
latio
legis
right-of-way, this
real estate signs) in a state highway
n
of the state) to enforce the prohibitio
lf
beha
(on
ents
rnm
gove
l
loca
allowed
the
r
lowe
to
n
latio
legis
the sponsor of the
and collect fines. MAR worked with
to
sign, and to require local jurisdictions
per
$25
to
sign
per
$100
fine from
be
d
coul
ls
idua
indiv
three months so that
forego collecting fines for the first
ent.
irem
requ
new
the
t
abou
educated
diation
HB 472 – Foreclosure Me
2010
1,
July
tive
Effec
–
ED
PASS
STATUS:
homeowners facing foreclosure.
Establishes a mediation process for
on detailing the lender’s efforts to
Requires lenders to provide informati
re. If the lender has not completed
help the homeowner avoid foreclosu
natives, the legislation provides a
its consideration of foreclosure alter
a foreclosure has been filed with the
process for that to occur even after
for foreclosure mediation if the
court. Allows a homeowner to opt
fairly considered for foreclosure
was
he
he/s
ve
homeowner does not belie
for housing counselors to assist
ing
alternatives. Provides additional fund
homeowners.
HB 1399 – Required Notice
of Housing Counseling
Programs and Services
STATUS: PASSED – Effective January
1, 2011 contingent upon the
adoption of regulations
Requires lenders to provide borrower
s written notice recommending that
borrowers complete homebuyer educ
ation or housing counseling and
information about such programs.
Lenders who must already refer
borrowers to housing counseling are
exempt. The law is effective
January 1, 2011 contingent upon
regulations being adopted before
October 1, 2010 by the Departm
ent of
Development (DHCD). If the regulatio Housing and Community
n is
2010, the law takes effect 60 days afte not adopted by October 1,
r DHCD certifies adoption of the
regulations to the Department of Legi
slative Services.
HB 711/SB 654
– Tenants in
Foreclosure
STATUS: PASSED – Effect
ive June 1, 2010
Conforms tenant disclo
sure legislation passed
last year
to the new federal Helpi
ng Families Save Their
Ho
Act (Public Law No:
111-22). While Maryl mes
and law
required only that len
ders and foreclosure pu
rch
give notice to tenants
living in foreclosed pro asers
perty, the
federal law extends ten
ant leases for at least
90
after a foreclosure
sale. This law confor days
ms
Maryland disclosure to
the federal law by inf the
orming
tenants of their rights
under the federal law
.
HB 406 – Real Estate Lice
nsees – Services
Provided through Teams
STATUS: PASSED – Effective October
1, 2010
Regulates real estate teams and grou
ps. Defines a real estate team as
two or more associate brokers or
licensed salespersons who work
together on a regular basis to prov
ide real estate brokerage services;
who represent themselves to the publ
ic as being part of one entity; and
who designate themselves a collective
name such as a team or group.
Each team must designate a team
leader with at least three years
experience as a licensee. The team lead
er is responsible for supervising
other team members and ensuring
that the team adheres to all office
rules, practices, and procedures esta
blished by the broker and/or
branch office manager. Advertisemen
ts for the team must include the
name of the brokerage, the name of
at least one licensed team member,
and the telephone number of the brok
er or branch office manager.
age Brokers - Charges
*HB 1254/SB 943 – Mortg
1, 2010
ices
collect the actual cost of goods or serv
Clarifies that mortgage brokers may
ified
spec
law
the
ly,
ious
Prev
on.
applicati
that are required to complete a loan
it
ct the actual costs of appraisals or cred
only that mortgage brokers could colle
the
n
latio
regu
by
set
t
mus
n
latio
l Regu
reports. The Commissioner of Financia ers can be compensated.
e brok
goods and services for which mortgag
Estate
HB 1471 – Real
sclosures
Di
–
ts
en
em
Settl
ive July 1, 2010
ect
Eff
–
D
STATUS: PASSE
of RESPA rules
Makes a violation
e of affiliated
sur
clo
dis
regarding the
a violation of
business arrangements
ll.
state law as we
8
HB 83 – Re
al
Agency and Estate Continuing Edu
cation –
B
STATUS: PASSED roker Supervision
– Effective for ne
xt licensure rene
after January 1,
wal that occurs
20
on or
Requires all re 12
al estate license
es to take a th
education course
ree-hour contin
in agency princip
uing
fifteen hours of
education requ les and disclosure as part of
ired for license
course requirem
the
rene
en
license renewals t must be fulfilled once every wal. The agency
fo
th
requires broker at occur after January 1, 2012 ur years after the
s, br
. Th
a three-hour co anch office managers and team e legislation also
urse
le
every four years. on the requirements of brok aders to complete
er supervision
Licensees with a
once
will be eligible
gr
aduate degree in
for
of continuing ed license renewal if they complet law or real estate
ea
uc
broker, or a desig ation, as long as they are no total of 7.5 hours
t a broker, asso
nated branch of
ciate
licensees eligible
fice manager or
te
fo
class for the legi r the 7.5 hour requirement will am leader. Those
substitute the ag
slative update in
ency
alternating licen
sing periods.
HB 1291/SB 95
2–
Home Sales – Di Residential
sclosure of Utili
ty
Consumption
STATUS: NOT PASSED
Although MAR was oppo
sed
MAR met with the Maryl to the bill as introduced,
an
to find a workable sol d Energy Administration
ution to providing uti
information to consum
lity
ers
workable solution, it wa . Though MAR found a
s too late in session for
changes to advance.
the
Insurers and
HB 1470 – Title
lation and
Producers – Regu
Reports
ive July 1, 2010
STATUS: PASSED – Effect urance producer
ins
e
titl
a
Clarifies that
not required to file a
is
r
cto
tra
con
nt
de
en
indep
of
surety bond, or letter
blanket fidelity bond,
l
cia
an
Fin
of
t
en
rtm
pa
credit with the De r is providing escrow
cto
Regulation if the contra es on behalf of a
vic
ser
nt
me
tle
set
or
g
closin
ho is subject to those
(w
cer
du
pro
title insurance
.
bonding requirements)
common ownership communities
mon Interest
HB 1300 – Licensing for Com
ers
nag
Community Ma
STATUS: NOT PASSED
se for managers of common
Would have created a state-issued licen
iums and homeowner
omin
interest communities such as cond
required managers to
have
ld
wou
n
latio
associations. The legis
training program and
a
plete
hold specific designations and com
have also created an
ld
wou
n
latio
legis
The
certification exam.
mission, to oversee
com
te
esta
oversight board, similar to the real
ts.
plain
com
er
inist
the industry and adm
HB 842 – Condominium and
Homeowner
Association – Priority of Lien
s
STATUS: NOT PASSED
Although MAR initially supported this
legislation, which would have
created a priority lien of up to 6 mon
ths of assessments for condo and
HOA foreclosed properties, we opposed
the legislation as amended and
sent to the Senate. The House amendm
ent required all condo purchasers
to pay a security deposit equal to two
months of assessments. MAR was
concerned about mandating an addi
tional cash requirement at the
settlement table for already difficult
to sell properties.
HB 460 – Condominium Bylaws –
Surcharge on Assessments
STATUS: DEFEATED
Would have permitted a condominium bylaw to
include an additional surcharge of 10% on each
assessment for common expenses for owners
whose units are leased or vacant.
SB 212 – Prohibited Restrictions on Exercise of
Free Speech
STATUS: NOT PASSED
Would have provided all common interest community residents
with the same free speech rights as other private property owners
regarding the display of noncommercial signs, posters, flags or
banners. Currently, the law only allows candidate signs.
land-use, property rights,
and the environment
dental Taking Permit for
*HB 295/SB 1020 – Inci
Puritan Tiger Beetle
2010
STATUS: PASSED – Effective April 13,
Resources to issue a permit to an
ral
Natu
of
nt
rtme
Depa
the
ires
Requ
l taking of the endangered Puritan
applicant that authorizes an incidenta
ently, many homeowners are at
Curr
.
Tiger Beetle in certain situations
cliffs that are the Tiger Beetle’s
risk because they cannot stabilize the
these properties could collapse
d,
ilize
habitat. If the cliffs cannot be stab
into the Bay.
vation Fund –
HB 1352 – Forest Conser
Contributions Rates
1, 2010
STATUS: PASSED -- Effective October
st Conservation Act
Establishes a higher fee under the Fore s. The fee for
area
ing
fund
ity
prior
of
ide
for projects outs
than the fee set for
such projects must be 20% higher
These fees are paid
projects inside priority funding areas.
on site.
loss
tree
when a project cannot mitigate
uction Act
HB 1041 – Lead Paint Red
of 2010
STATUS: DEFEATED
given community
Among other provisions, would have
homeowners
sue
to
associations the legal standing
, with the
riors
exte
e
hom
on
tions
viola
over lead paint
.
right to seek monetary damages
Nitrogen Removal
HB 62 – Septic Systems –
Technology
1, 2010
ronment to provide grants for 100%
Envi
the
of
nt
rtme
Depa
the
Requires
entional septic system and one
conv
a
een
betw
of the cost differential
when a homeowner is required to
using nitrogen reduction technology
Critical Areas. This legislation
d’s
ylan
Mar
in
replace a septic system
which did not provide a statutory
clarifies the law passed last year,
ts. The grants must be paid until
gran
ial
rent
diffe
guarantee for the costaluated.
2012, when the program will be reev
HB 1125 –
Sto
STATUS: NOT PA rmwater Managemen
SSED BUT IMPLEM
t
EN
The regulations
, like the legisla TED BY REGULATION
tion, grant a de
final approval to
velope
ad
far in the develo dress the large number of proj r three years to receive
pment process bu
ec
t are now delaye ts which have advanced
If the developer
do
d be
start construction es not receive approval within th cause of the economy.
re
by
new criteria. Th 2017, the project will likely ha e years, or has failed to
e regulation also
ve
redevelopment
clarifies the proc to start over under the
proj
ed
created confusio ects must take under the law. ures and standards that
n
redevelopment. and uncertainty for many loca The original regulation
l
The regulations
take effect on M governments supporting
ay 4, 2010.
property management
rtment of
HB 1377 – Depa cal Development
Lo
–
Transportation
s
Review
STATUS: DEFEATED
t of
ed the De pa rtm en
Wo uld ha ve req uir e comment to a local
vid
Transportation to pro transportation element of
the
ing
ard
reg
t
governmen
specific
ve plan, site plans for
the local comprehensi
plats.
n
isio
div
sub
al
fin
and
t on
projects, preliminary
en
rtm
pa
De
input from the
ed
Would have required
nn
pla
t,
en
pm
elo
dev
e
xed-us
certain approvals of mi an d tra ns it- or ien ted
un it de ve lop me nts
development.
HB 508/HB 672 – Interest Rates on Security
Deposits
STATUS: NOT PASSED
Would have allowed interest rates on security deposits to be
matched to federal reserve discount rates instead of a flat rate of
3%. Amendments MAR proposed would have given landlords the
option of choosing a floating rate or using the flat 3% rate.
rvices
yland Legal Se
SB 248 – Mar
nd
Corporation Fu tive July 1, 2010
fec
Ef
–
ED
SS
m $25 to $55,
PA
:
US
STAT
circuit court case fro r summar y
a
ng
fili
r
fo
fee
e
$5 to $8 fo
Increases th
Court cases from
ict
str
Di
r
fo
s from $10 to $18.
e
fe
the
for other civil case proposed even
fee
e
th
d
an
s,
se
ca
roduced,
ejectment
islation which, as int
rvices
MAR opposed the leg ation also provides that the Legal Se it
isl
bm
su
leg
st
e
Th
mu
s.
s,
steeper fee
m these fee
receives funding fro vember of each year.
ich
wh
,
on
ati
or
rp
Co
No
Judicial Branch in
ne 30,
its budget to the these fee increases will sunset on Ju
n,
tio
ac
er
rth
fu
ut
tho
Wi
2013.
HB 1382/SB 554 – Rental Housing – Lease
Termination for Domestic Violence Victims
Allows a victim of domestic violence or sexual assault to terminate
a lease if granted a final protective or peace order by a court. As
introduced, the legislation would have created a new protected
class for domestic abuse and sexual assault victims for all housing.
That provision was dropped.
SB 243 – Housing Dis
crimination –
Source of Income
STATUS: DEFEATED
Would have created a new pro
tect
income.” The bill would hav ed class for “source of
e forced landlords to accept
federal Section 8 vouchers
despite the fact that the
federal program is volunt
ary. Unlike most forms of
payment, a Section 8 vou
cher requires a landlord to
comply with the federal
regulations governing the
program. Those regulation
s impose even greater costs
and duties on landlords,
such
requirements and lease term as special inspection
s.
HB 1153/SB 50
4 – Lead Dust
Testing
STATUS: DEFEATED
Would have required lan
dlords and property
managers to conduct a
dust
the full risk reduction test and complete
standard of units
subject to Marylan
d’s
Prevention law. Un Lead Poisoning
der current law, a
landlord is required to
perform either a dust
test or the full-risk red
uction standard.
9
commercial
HB 484/SB 1083
–
Payment Schedu Semiannual
le – Small Busin
ess
Property
STATUS: PASSED – Effect
ive October 1, 2010 for
years beginning after
tax
June
Requires local governm 30, 2011.
ents to provide a sem
iannual
payment schedule
for
Currently, local governm small business property.
en
semiannual payments ts are only required to offer
for residential property
. A sm
business property is de
fined as a property ass all
igned a
commercial use code
by
Assessments and Tax the State Department of
ation and for which
annual
property taxes do not
exceed $50,000.
munities Act
HB 475 – Sustainable Com
2010
1,
June
tive
Effec
–
ED
PASS
STATUS:
Heritage Structure Rehabilitation Tax
Extends for three years the Maryland
munities Tax Credit. The bill permits
Credit, renamed the Sustainable Com
as transit oriented development, BRAC
certain non-historic structures (such
credit (10 percent of rehabilitation
enterprise zones) to claim a reduced
a credit for 20 percent of certified
claim
still
can
s
costs). Historic structure
ns
d be claimed for historic renovatio
costs, and a 25 percent credit coul
so
ed,
capp
is
its
cred
Funding for the
which comply with LEED certification.
it.
cred
the
not every eligible property will receive
Benchmarking for
HB 985/SB 713 – Energy
Commercial Buildings
STATUS: NOT PASSED
mercial buildings to pass on utility
Would have required state and com
ronmental Protection Agency. Would
usage information to the Federal Envi
over 10,000 square feet to disclose
ings
have required commercial build
e than 2,000 square feet. The bill
benchmarking data to lessees of mor
state building and commercial
to
would have initially applied only
but would have phased-in other
buildings over 150,000 square feet,
re feet by 2013.
squa
commercial buildings over 50,000
mit Extensions
HB 1344 – Construction Per
STATUS: NOT PASSED
s the current tolling of
Would have extended by two year
its. Under current law,
construction and development perm
1, 2008 through June
ary
Janu
from
d
such permits were tolle
clarified language
also
30, 2010. The legislation would have
its and approvals,
perm
ent
rnm
gove
in the law relating to local
.
and included grading permits as well
HB 1163 – Economic
Development – Enterprise
Zones
Clarifies that a county may have no more than
two enterprise zones designated in a calendar
year. The prior limit was no more than one
enterprise zone designated in a year.
HB 620/HB
5
Elements a 97 – Condo and HOAs
nd Implied
– Common
Wa
STATUS: PASSED
– Effective Octo rranties
be
Requires certain
r 1, 2010
st
common elemen ructural elements of a build
ing to be consid
ts in residentia
ered
warranty on co
l
mmon elemen condominiums, and extends
ts. The bill
condominium
the
byla
requ
common elemen ws to designate certain stru ires residential
ts,
ctu
an amendment such as floors, roofs, foundations ral elements as
to the bill to cla
, etc. MAR propos
rif
apply to commer
ed
y that such a lim
cia
flexibility regard l or mixed-used developments itation should not
which need addi
ing the designatio
tiona
bill exempts
only solely co n of common elements. Howeve l
r, the
mmercial cond
requirements.
omin
Th
elements to the e bill extends the initial wa iums from the
rran
long
Council of Unit Ow er of three years or two years ties on common
after an independ
ners is establish
ent
ed.
ement Districts
HB 1182 – Business Improv
2010
1,
ber
Octo
tive
STATUS: PASSED – Effec
establish Business
Authorizes local government to
allows the local
bill
The
s).
(BID
Improvement Districts
if at least 80% of
only
government to approve such a district
tion of the BID.
crea
the
ove
appr
and
its businesses sign off
located in the
es
pani
The BID can impose taxes on the com
s.
BID to fund its operation
Occupancy
Multiple eters
–
8
3
1
1
M
r
HB
– Master
(sunsets afte
Buildings – Effective July 1, 2010
ED
STATUS: PASS
al
)
cy residenti
June 30, 2013 new multiple-occupan for heating,
at
Clarifies th y use a master meter if the Public
a
es
buildings m d air conditioning servic master meter
e
an
,
th
on
at
ti
th
ila
ed
nt
ve
on is satisfi ergy over the energy
si
is
m
m
Co
e
Servic
al
s of en
a net saving
om individu
will result in ould have resulted fr in the rent
ed
w
saving that utility bill must be includ
e
er.
metering. Th subject to a master met
its
for those un
miscellaneous
HB 993 – Use of Wireless Communication Devices
in Motor Vehicles
STATUS: DEFEATED
Would have prohibited the use of all wireless communication devices in
motor vehicles, even hands-free devices. Although this bill did not pass,
the Legislature did pass SB 321, making use of a hand-held cell phone
while the vehicle is moving illegal. The violation is a secondary offense,
meaning that a driver cannot be pulled over solely for using a hand-held
phone. SB 321 is effective October 1, 2010.
With the conclusion of the legislative session, Maryland legislators now turn their attention to the statewide
elections in the fall. The Maryland primary election is September 14th and the general election is November 2nd.
The two most important actions that you can take this year as a REALTOR® member in advancing a positive
legislative agenda is registering to vote and voting! REALTORS® are the largest professional trade association in
Maryland, and our political influence is strengthened when our members exercise their voting rights.
* Indicates a bill that has been signed by the Governor as of the date this article was written. All other bills listed have only been passed by the Maryland General Assembly and
must still be signed by the Governor to take effect.
10
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Economic Forecast
Anirban Basu
Recovery Revs Up
Good News for the State’s Housing Market
Economy Expanding as Predicted.
Will the Run Last?
Labor Statistics (April 2nd) met most economists’ expectations, with private sector
job growth totaling 123,000 in March.
The economy continues to gather momentum, as does
The Case for the Next Prolonged
Expansion Cycle - Revisited
Maryland’s housing market. Presuming that mortgage
rates remain well behaved for the balance of the year,
Maryland’s housing market stands to experience ongoing
improvement, even if federal tax credits expire in
accordance with the current schedule.
Though we continue to await first quarter Gross Domestic Product (GDP) data, it is
clear that the nation has strung together three consecutive quarters of growth,
including 5.6 percent growth on an annualized basis in the fourth quarter of 2009.
Employment is now expanding; the unemployment rate has been steady at 9.7
percent for the past 3 months, down from a high of 10.1 percent in October 2009.
The latest monthly establishment-based employment report from the Bureau of
12
A close inspection of fourth quarter 2009 GDP reveals a promising shift away from
pure dependence upon government spending to a broadening economic expansion.
For example, according to the Commerce Department’s second GDP report
published on March 26th, 2010, nonresidential fixed investment rose 6.5 percent
during the fourth quarter of last year, the first positive quarter since the second
quarter of 2008. Nonresidential equipment and software was up 18.2 percent on
an annualized basis, indicating that IT is emerging as one of the economy’s primary
drivers in the recovery. That helps explain why the San Francisco Bay area is now
experiencing one of the nation’s fastest expansions in median home sales prices.
Of central importance is the ongoing rebound in retail sales and consumer
confidence. Year-over-year sales growth is now positive, though the comparison
months were of course in the immediate aftermath of the financial crisis that began
in September 2008.
This is not intended to imply that we anticipate an especially brisk recovery. We do
not, and many of the reasons we have cited in earlier reports remain firmly in place.
These include tight credit, an unsettled federal policymaking environment, and
subdued expansion in various parts of the world. Double-digit or near double-digit
unemployment rates for months to come, and the expectation that policy support for
the economy will begin to wane within the next twelve months, also play heavily into
our forecast for a slower recovery.
In fact, policy support for government sponsored economic stimulus will begin to
wane well before the end of this year. As of this writing, Federal Reserve purchases
of collateralized mortgage backed securities have been over for a few weeks, which
implies that the era of ultra-low mortgages may soon be coming to an end, though
for now low rates remain firmly in place. Given the ongoing scrutiny of internal
operations, there will also likely be calls by the federal government for Freddie and
Fannie to slow down their purchases of mortgages.
In the words of Wells Fargo economists, “We are not expecting a double dip
recession, but do expect growth to remain relatively modest through 2011.” We
generally concur, as we anticipate that consumer spending and business fixed
investment will remain somewhat steady over the next five quarters.
One of the other reasons to believe in the sustainability of the nation’s nascent
recovery is the recent performance of
financial markets. On March 9, 2009, the
Gross Domestic Product, Annualized Quarterly
Dow Jones Industrial Average reached a
Percentage Change, Q1 2001 – Q4 2009
cyclical low 6,547.05 after dipping to an
intraday low of 6,469.95. Since that time,
stock prices have enjoyed a roughly 70
percent retracement, replenishing wealth and
signaling confidence in corporate earnings.
The fourth quarter GDP report was consistent
with the notion of rising profits, which may be
just enough to keep the recovery going into
and through 2011.
Source: Bureau of Economic Analysis
National Nonfarm Employment Net Change,
February 2006 – March 2010
In many ways the recovery that began during
the summer of 2009 is quite ordinary. As
with typical recoveries, financial markets were
first to begin recovery, followed by GDP
growth. Now comes the final big piece in the
puzzle: job growth.
And the data are unmistakable – job growth is
on the way, though unemployment will remain
much higher than customary levels. In January the nation gained 14,000 jobs (revised
estimate), and then lost almost precisely that
number of jobs one month later. In March, the
nation added 162,000 jobs, the first six-digit
increase for the U.S. economy since November 2007. Through March, unemployment
has remained steady at 9.7.
States with the lowest unemployment rates
tend to be natural resource intensive and are
Source: Bureau of Labor Statistics (based on payroll survey)
13
Economic Forecast
Continued from page 13
Comparison of Unemployment Rates by State,
February 2010
STATE:
UR:
STATE:
UR:
STATE:
UR:
NORTH DAKOTA
4.1
ARKANSAS
7.7
NEW JERSEY
9.8
NEBRASKA
4.8
TEXAS
8.2
GEORGIA
10.5
SOUTH DAKOTA
4.8
MAINE
8.3
OREGON
10.5
KANSAS
6.5
ALASKA
8.5
TENNESSEE
10.7
VERMONT
6.6
NEW MEXICO
8.7
KENTUCKY
10.9
IOWA
6.7
WISCONSIN
8.7
OHIO
10.9
OKLAHOMA
6.7
NEW YORK
8.8
ALABAMA
11.1
HAWAII
6.9
PENNSYLVANIA
8.9
N. CAROLINA
11.2
MONTANA
6.9
CONNECTICUT
9.1
ILLINOIS
11.4
NEW HAMPSHIRE
7.1
DELAWARE
9.2
MISSISSIPPI
11.4
UTAH
7.1
MISSOURI
9.4
D.C.
11.9
VIRGINIA
7.2
ARIZONA
9.5
FLORIDA
12.2
LOUISIANA
7.3
IDAHO
9.5
CALIFORNIA
12.5
MINNESOTA
7.3
MASSACHUSETTS
9.5
S. CAROLINA
12.5
WYOMING
7.5
WASHINGTON
9.5
R. ISLAND
12.7
MARYLAND
7.7
WEST VIRGINIA
9.5
NEVADA
13.2
COLORADO
7.7
INDIANA
9.8
MICHIGAN
14.1
Source: Bureau of Labor Statistics Maryland’s Housing Market
arguably less susceptible to real estate speculation. States with the highest
unemployment rates tend to have suffered significantly from de-industrialization
and/or have disproportionately bad residential real estate markets. Thanks in large
measure to ongoing federal government expansion, Virginia and Maryland continue
to boast relatively low unemployment rates.
In March, Maryland added more jobs than any other state-- 35,800 in March, a
1.4 percent expansion in jobs over the course of 31 days. That is simply remarkable,
even though March’s performance was inflated by the re-emergence of jobs lost in
February due to the snowstorms, as well as temporary Census Bureau hiring. The
gains were broad enough to indicate that the state’s labor markets are beginning to
mend in earnest, which is good news for the Maryland’s housing market.
For months, the state’s housing market has been rebounding even in the absence of
employment growth, as homebuyers have found ways to avail themselves of low
mortgage rates, FHA financing and tax credits. With job growth set to accelerate,
we expect the state’s housing market will continue to heal.
14
Due largely to significant sales volume growth over
the past year, inventory of unsold homes continues to
trend lower. As of March, the state’s active inventory
as reported by MRIS and Coastal was 42,753, down
from 45,738 one year earlier. Unit sales are up more
than 29 percent on a year-over-year basis.
In both Montgomery and Howard counties, it appears
that equilibrium has been achieved and home prices
are set to rise. Active inventory in Montgomery
County is less than six months and just above that
level in Howard County, based on March sales.
Progress continues in virtually every other county as
well, including Prince George’s, where unit sales were
up 99 percent on a year-over-year basis in March
and active inventory has dwindled from 6,985 in
March of 2009 to 5,623 one year later. No county
appears to have benefitted as much from the firsttime homebuyer tax credit as Prince George’s
County.
That said, the recovery is far from complete. On a
year-over-year basis, median and average sales
prices in Maryland are down 8 percent. In March
2009, the average price in Maryland stood at nearly
$300,000. One year later, it had fallen below
$275,000.
Moreover, with mortgage delinquencies still high, large number of homeowners well
underwater and many investors still struggling, there remain homes in or close to
foreclosure, and homes that owners want to sell but are hesitant to put on the market.
While it is very difficult to know with any elevated level of accuracy the size of this
“shadow inventory,” it is likely that that inventory will continue to suppress home price
increases in many submarkets for months to come.
Still, the bulk of news on the housing front is positive. Mortgage rates remain
consistent and March pending unit sales were more than solid. In March 2009,
there were 5,298 pending sales statewide. One year later, the corresponding
monthly figure was 7,707, an increase of 45 percent. While it is true that a significant
fraction of this performance is due to the impact of federal tax credits, there appears
to be an underlying momentum in the state’s housing market that is unrelated to the
tax credits and can therefore be sustained even after the tax credits lapse.
Looking Ahead
The last few months have been surprisingly good. As of this writing, the Dow Jones
Industrial has rebounded to above 11,200 (the Dow began the year at 10,430). This
run-up has been supported by a now-expanding U.S. economy, increasing corporate
earnings and renewed confidence among investors. Industrial production is on the
rise, with double-digit gains in output in high technology over a recent three-month
period and 8.7 percent gains in manufacturing ex-high-tech. The Institute for Supply
Management’s non-manufacturing index rose in February to 53.0, the highest level
since October 2007.
dollar will trend modestly higher, not just against the Euro but against most major
currencies. The notion is that U.S. economic expansion will attract foreign direct
investment, which in turn will create demand for the dollar and lift the greenback.
However, a modest uptick in the value of the dollar is not inconsistent with the notion
that this will be a year of export growth in America.
The general rebound in economic activity has helped to sustain corporate earnings
growth. Pre-tax corporate profits rose 8 percent to a seasonally adjusted $1.5
trillion annual rate during the fourth quarter, compared to the third quarter of last
year, according to the Commerce Department. After-tax profits were up 23 percent
on a year-over-year basis during last year’s final quarter, and most expect
encouraging news on the profits front during the first quarter of the current year.
Consumer spending has also been stronger than many had anticipated, and the
rebound in the stock market has certainly helped. Retail sales rose solidly during the
first quarter, including among luxury
retailers.
Realtors and others
Our concerns revolve largely around
the second half of 2010 and 2011. As
should not lose
stimulus impact ebbs, interest rates
This is very good news for national and
rise, past tax cuts lapse and state and
sight of the fact that the housing market
local housing markets. Realtors and
local governments begin to curtain
was
most
active
when
financial
markets
others should not lose sight of the fact
expenditures in earnest, the economy
that the housing market was most active
will become increasingly vulnerable.
were performing well. In October of 2007,
when financial markets were performing
Indeed, as we move through 2010,
well. In October of 2007, the Dow
Sage is looking to a number of key
the Dow Jones Industrial Average sat
Jones Industrial Average sat above
economic variables to determine our
above 14,100 for a time, which meant that
14,100 for a time, which meant that
2011 forecast. The first is the
many households enjoyed plenty of
performance of financial markets,
many households enjoyed plenty of
liquid wealth. Though this in and of itself
which have recently done more than a
did not fully shield the housing market
passable job in predicting the
liquid wealth.
from downturn, the presence of financial
trajectory of the economy. The Dow
wealth helped to establish a floor below
Jones Industrial Average peaked at
which the housing market could not fall. However, by March of 2009, the index had 14,164.53 on October 9th, 2007 before beginning what was then a slow, steady
lost more than half of its value, and the loss in financial wealth served to batter descent. Two months later, the economy was in recession. More recently, the market
housing markets across the nation as families collectively lacked the wherewithal to has been trending higher on low volatility. Perceptions of risk have abated massively
participate in a housing market that had begun to offer historically attractive in recent weeks and if economic data continue to be strong and largely unidirectional,
purchase opportunities. Tighter credit also ensued as institutions labored to preserve the market liftoff could continue. That could create enough wealth and confidence
capital. The loss in financial wealth also hammered away at household confidence, to allow for a sustained economic recovery into and beyond 2011.
a necessary ingredient for robust sales of big ticket items such as homes.
However, there does remain a risk of a double-dip recession, or at least a period of
It is true, however, that there are global headwinds. Economic activity in the Euro below average growth in 2011. Were that to occur, the momentum now being
countries is no longer in decline, but the upturn in activity remains subdued and experienced in Maryland’s housing market would likely be interrupted as job growth
much of the focus remains on budgetary issues in Greece, Portugal and other sputters and unemployment edges higher again. If mortgage rates were to rise
European nations. From the perspective of U.S. exports, this is problematic, because during the balance of this year and into next year, and tax credits lapse, the loss in
it creates the possibility that the dollar will appreciate, albeit perhaps just gradually. housing market momentum could become more severe than many observers
The U.S. dollar trended lower for much of last year, which helped position America’s presently forecast under their baseline scenarios. In other words, the drama
economy for renewed export growth. Many economists believe that this year the continues.
15
PRESENTS
2010 ANNUAL CONFERENCE AND TRADESHOW
September 13–15, 2010
Roland E. Powell Convention Center
Ocean City, Maryland
5(*,67(521/,1(
Complete Schedule
and Course Descriptions
www.mdrealtor.org
16
2010 Conference Sponsors
Conference Sponsors
Main: MRIS & MetLife Home Loans
Frederick County Association of REALTORS®
Golf Tournament
Longest Drive—Men
Garrett County Board of REALTORS®
Rookie REALTOR® Society Luncheon
Main: Howard County Association of REALTORS®
Patron: MHREIA
Closest to the Pin—Men
Pete O’Donnell, MetLife Home Loans
REALTOR® Business Center
Coldwell Banker Residential Brokerage
Hotel and Condo Rental Information
Discounted rates for 2010 Conference Registrants
and Exhibitors are provided at the following hotels
and condos in Ocean City, Maryland.
The reservation deadlines vary and may be as
early as August 12, 2010. (Be sure to mention the
Maryland Association of REALTORS® when making
your reservations.)
The Roland E. Powell Convention Center is located
at 4001 Coastal Highway and Bayside right before
41st St.
Rates listed below do not include any tax:
Atlantic Oceanfront
4501 Atlantic Ave.
410-289-6424
Rates: $79–$139 per night, plus tax (based on view)
Clarion Resort
10100 Coastal Hwy.
800-638-2100
Rates: $119–$269 per night, plus tax
Coconut Malorie
200 59th St.
800-767-6060
Rate: $99 per night, plus tax
Courtyard by Marriott
2 15th St.
410-289-5008
Rates: $99 per night, plus tax
Fenwick Inn
13801 Coastal Hwy.
800-492-1873
Rate: $59, per night, plus tax (based on view)
Tees
Martha Lessner, REALTOR®
Holly Hart, Prosperity Mortgage
Bay Area Association of REALTORS®
Grand Hotel
2100 Baltimore Ave.
800-447-6779
Hilton Suites Ocean City Oceanfront
3200 N. Baltimore Ave.
410-289-6444
Holiday Inn Hotel and Suites
1700 Baltimore Ave.
866-627-8483
Holiday Inn Oceanfront
6700 Coastal Hwy.
800-638-2106
Princess Bayside
4801 Coastal Hwy.
800-854-9785
Princess Royale
9100 Coastal Hwy.
410-524-7777
Tidelands Caribbean
5th Street
877-365-6962
Condo Rental Information
Ocean City Rental Management Office
7501 Coastal Hwy.
410-524-0900
17
Education Course Summary
COURSE REGISTRATION
Course registration is REQUIRED at the time of Conference Registration. MAR
does not guarantee class availability if classes are not selected at the time of
registration. Please complete one form per attendee. Classes are available on a
first-come, first-served basis. Additional courses, changes and/or filled class status
will be posted under Annual Conference items online www.mdrealtor.org.
Eligibility for continuing education (CE) credits:
You MUST arrive on time to the class. Arrive early for session check-in. No CE credit will be given once the class has begun.
NO GRACE PERIOD. NO EXCEPTIONS. Full session attendance is required. CE will not be given unless participant is a paid
registrant for the 2010 Conference once the class begins. It is your responsibility to return all CE cards at the end of each class.
In anticipation of newly enacted MD REC requirements, you may be required to provide your
MD REC License # and photo ID to gain class admittance.
MONDAY, SEPTEMBER 13
*Subject to MD RE Commission approval
Course Time
Course Title
Course Speaker
8:30–10:00 AM
Fair Housing Today
1.5 hours, Fair Housing CE*
Deborah Hutson
8:30–11:45 AM
Legal & Legislative Roadmap
3 hours Legal / Legislative CE*
MAR Legal Affairs Team
8:30–11:45 AM
15 Legal “HOT” Topics
3 hours, Legal / Legislative CE *
Al Monshower, Esq.
MAR General Counsel
8:30 AM–5:00 PM
NAR GREEN Residential Real Estate Elective Course
5 hours, Professional Enhancement CE*
Terry Watson
8:30 AM–5:15 PM
Credit Smart
6 hours toward WHC Certification
Steve Pearson & Jim Harris
8:45 AM–12:00 PM
EXTRA-ORDINARY Service—Creating & Implementing
An Exceptional On-going “Service Package”
Ed Hatch
8:45 AM–5:15 PM
Leasing & Tenant Representation
Byron Smith Sr. Esq., CCIM, CRB
10:00–11:00 AM
MRIS—A Sure Bet
MRIS Staff
10:30 AM–12:00 PM Taxes
Linda DeMarlor
2:00–5:15 PM
Complete Automation
3 hours, Technology CE*
Amy Cherow
2:00–5:15 PM
Ethics
3 hours, Ethics CE*
Deborah Hutson
2:00–5:15 PM
FHA–203k
Everett Sands
2:00–5:15 PM
Group Investing in Commercial Real Estate
Byron Smith Sr., Esq., CCIM, CRB
2:30–5:45 PM
Distressed Property—Go to Settlement, not Court
3 hours, Legal / Legislative CE*
Charles A. Kasky, Esq.
3:30–4:30 PM
MRIS—A Sure Bet (REPEAT)
MRIS Staff
TUESDAY, SEPTEMBER, 14
*Subject to MD RE Commission approval
Course Time
Course Title
Course Speaker
8:30–11:45 AM
Contract Pitfalls & Risks
Charles Kasky, Esq.
8:30–11:45 AM
Things Mom Didn’t Teach You about Business Planning!
Gee Dunsten
8:30 AM–12:00 PM
NAR GREEN Commercial Elective
Terry Watson
9:00–10:30 AM
Fair Housing Today (REPEAT)
Deborah Hutson
9:00–11:15 AM
Maximizing Financing Strategies for Buyers
Steve Pearson
9:00–11:00 AM
Extreme Customer Satisfaction
Amy Cherow
10:30–11:30 AM
MRIS Staff
1:00–5:00 PM
NAR Commercial GREEN Elective
Terry Watson
2:00–5:15 PM
Agency Matters!
Charles Kasky, Esq.
2:00–5:15 PM
What’s the Difference?
Douglas Smith
2:00–5:15 PM
Real Estate Service Strategies in the Information Age
3 hours, Technology CE*
Amy Cherow
2:00–5:15 PM
RESPA, It’s Changes & Legal “HOT” Topics
Celeste Filoia, Esq.
Colette Massengale, Esq.
2:30–4:00 PM
How to Comply—Maryland’s newest law regulating Septic Systems
William Castelli, Esq.
Moderator
3:30–4:30 PM
MRIS Staff
WEDNESDAY, SEPTEMBER, 15
8:30–10:00 AM
Fair Housing
Ronald Anderson
8:30–11:45 AM
Building Loyalty through Better Customer Service
Gee Dunsten
8:30–11:45 AM
Ethics (REPEAT)
3 hours, Ethics CE*
Deborah Hutson
8:30–11:45 AM
Distressed Property—Go to Settlement, Not Court (REPEAT)
Charles A. Kasky, Esq.
10:30 AM–12:00 PM Preparing for the Appraiser
Ronald Anderson
19
Homeownership Highlights
Fern S. Dannis
Smooth Sailing
Anyone?
Most REALTORS® probably agree that in this
market, patience and persistence prevail,
and buyers must be able to shift, swerve
and tack to sail home. Buyers and
REALTORS® are braving unchartered
waters: maneuvering through
new federal programs/
regulations, changes to
loan underwriting
guidelines and the
administrative
bottleneck of
modification requests and
short sale proposals with
banks or servicers.
22
A good example comes from REALTOR® Jim
Turner of Chesapeake Bay Realty. Jim represented
a seller in a short sale. Countrywide Mortgage held
the original loan of $310,000. When Bank of America
(BOA) took over Countrywide, a major lapse in
communication ensued. Neither entity could agree on
which one would handle the transaction.
BOA received five offers on the house in June 2009, ranging
$225,000 to $140,000. As the Bank continually failed to respond
to Buyers’ offers, new personnel were assigned to oversee the
process. Employees continued to turn over faster than a small
skiff in a storm, and things became even more stressful as
November 2009 approached, when the initial deadline for the tax
credit program would arrive.
Finally, only one offer remained, at $185,000 the second lowest.
“Jack,” a single man in his mid 20’s, was determined to stay aboard
and buy the house.
Coincidentally, Jack applied to BOA for his FHA mortgage, with a
down payment of 2.75%. But BOA’s mortgage division was not
allowed to talk to the short sale/loss mitigation division to work
out details. A new review director was hired and countered Jack’s
offer: $209,000 with 5.75% down, which allowed Jack to receive
$6,000 closing cost assistance from BOA. Jack would have to get
a gift from a family member to help with the additional down
payment.
As a result of the appraisal, Jack was forced to clean snow off the roof,
repair shingles, fill the oil tank (so that pipes would not break), and
repair plumbing. Termite problems were suspected, so a contractor’s
report was required to verify that there was no real damage. An
additional inspection report was required after the verification. “One
would think the Buyer would request the Seller to make the repairs
and pay for termite inspections
and contractor reports,” observes
REALTOR® Mr. Turner. “But in a short
sale, the Seller presumably has insufficient funds, so the
Seller’s lender dictates the settlement contributions.”
Turner praised Jack for “going the extra mile” because he kept
spending money without really knowing that he would get the
house, still believing that his goal of homeownership was in
sight.
Finally, on January 2, 2010, Jack purchased the house for $209,000
from BOA. The Seller elected to pay a lump sum at settlement of
$9,000 rather than sign a promissory note for the shortfall. Home
at last!
Fern Dannis, Director of Housing Programs for the
23
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An independently owned and operated member of The Prudential Real Estate Affiliates, Inc.
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Leaders
of the PAC
2 0 0 9 edition
Thank You to all our 2009 RPAC Contributors. Your support of RPAC demonstrates your insight about the importance
of our efforts to support candidates who support our industry and our profession. Special thanks to the continued,
generous support of RPAC Golden R Contributors for their extraordinary leadership and dedication.
President’s Circle
Sustaining Golden R
Those REALTORS® who are major donor contributors AND pledge
$2,000 direct-candidate contributions.
F
F
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F
F
F
F
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F
F
F
Mary Antoun
William Armstrong
Carlton Boujai
Rick Brown
Bonnie Casper
Adam Cockey
Gloria Farrar
Iona Harrison
John Harrison
Al Ingraham
Ilene Kessler
Carole Maclure
Steve Meszaros
Joanne Poole
Dale Ross
Cathy Werner
Wayne Wyvill
Golden R Contributors
Thank You Golden and Sustaining Golden R Association Contributors!
F Mary Antoun
F Greater Baltimore Board of REALTORS®
F Maryland Association of REALTORS®
F Iona Harrison
F John Harrison
F Carole Maclure
F Greater Capital Area Association of REALTORS®
F Prince Georges County Association of REALTORS®
26
Ilene Kessler
Cathy Werner
Wayne Wyvill
Alan Ingraham
J. Thomas Carruthers, III
Jay Webster
Adam Cockey
Dale Ross
Joan Ryder
Crystal R Contributors
F Harford County Association of REALTORS®
F Howard County Association of REALTORS®
Sustaining Crystal R
F Marc Witman
F William Yerman
F Gloria Farrar
Sterling R Contributors
The RPAC Trustees would like to recognize first-time Sterling R
Contributors for their generous contribution of $1000 to RPAC in 2009.
Thank you for your support!
F
F
F
F
F
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Timothy Blanchfield
James Blaney
Mary Calder
Bill Cook
Brian Donnellan
William Fox
Elizabeth Gray
Realtor
Party
®
VOTE
ACT
INVEST
F
F
F
F
F
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Sydney Harrison
Richard Rall, Jr.
Marilyn Rhodovi
Mary Sherrock
P. Joy Siegel
Kenneth Smallwood
Lee Tessier
Anthony Williams
Multi-Year Sterling R Contributors
The RPAC Trustees would further like to recognize our MULTI-YEAR
STERLING R CONTRIBUTORS for 2009 and thank them for their
support!
F
F
F
F
F
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F
F
F
F
F
F
Barbara Baumler – Two-Time Sterling R
Russell Boyce – Two-Time Sterling R
Richard Brown – Two-Time Sterling R
Bonnie Casper – Two-Time Sterling R
Julian Coiner – Two-Time Sterling R
Adrian Hunnings – Two-Time Sterling R
Patricia Long – Two-Time Sterling R
Fred Pumphrey – Two-Time Sterling R
Stephanie Rall – Two-Time Sterling R
Southern Maryland Association of REALTORS® – Two-Time Sterling R
Charlie Windsor – Two-Time Sterling R
Tim Wood – Two-Time Sterling R
F Ron Bowers – Three-Time Sterling R
F David Charron – Three-Time Sterling R
FFrederick County Association of REALTORS® – Three-Time Sterling R
F Janice Kirkner – Three-Time Sterling R
F Shirley Matlock – Three-Time Sterling R
F David Mcllvaine – Three-Time Sterling R
F Dennis Melby – Three-Time Sterling R
F Bob Simon – Three-Time Sterling R
F
F
F
F
F
F
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Michael Cerrito – Four-Time Sterling R
Joanne Darling – Four-Time Sterling R
Daniel Early – Four-Time Sterling R
Bud Humbert – Four-Time Sterling R
Steve Meszaros – Four-Time Sterling R
Jill Pogach Michaels – Four-Time Sterling R
Kenneth Montville – Four-Time Sterling R
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F
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F
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F
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Carlton Boujai – Five-Time Sterling R
James “Bud” Church – Five-Time Sterling R
Carroll County Association of REALTORS® – Five-Time Sterling R
Coastal Association of REALTORS® – Five-Time Sterling R
Tom Earnest – Five-Time Sterling R
John Hurt – Five-Time Sterling R
Creig Northrop – Five-Time Sterling R
Susan Pruden – Five-Time Sterling R
Ashley Richardson – Five-Time Sterling R
FAlease Bowles – Six-Time Sterling R
FMelvina Brown – Six-Time Sterling R
FCecil County Board of REALTORS® – Six-Time Sterling R
FMike Moran – Six-Time Sterling R
Local Board that exceeded their 2009 RPAC Goal
Pictured left to right: Paula Ruckelshaus (President of Bay Area Association
of REALTORS), and Steve Meszaros (MAR President)
Mid-Shore Board of REALTORS
Pictured left to right: Sigrid Hayward (Local RPAC Chair- Mid-Shore Board
of REALTORS- Local Board that exceeded their 2009 RPAC Goal), Steve
Meszaros (MAR President), and Jennifer Williams (President of Mid-Shore
Board of REALTORS- Most Improved Local Board- Dollar Percentage &
Local Board with Greatest per Capita RPAC Participation)
Committees who had 100% RPAC Participation in 2009
Pictured left to right: Melvina Brown and Tim Wood (Local RPAC Trustees),
Steve Meszaros (MAR President), and Bea Rogers (Vice Chair of Annual
Conference Committee)
27
Leaders of the PAC
FShelly Murray –
Six-Time Sterling R
FTom Quattlebaum –
Six-Time Sterling R
FRon Deem –
Eleven-Time Sterling R
FJody Landers –
Eleven-Time Sterling R
FJack Bannister –
Seven-Time Sterling R
FBuzz Mackintosh –
FBarbara Miles –
FPatty Smallwood –
FReal Estate Million Dollar
Association of Baltimore –
Fourteen-Time Sterling R
FGeorgiana Tyler –
Fourteen-Time Sterling R
FCindy Ariosa –
Eight-Time Sterling R
FBoyd Campbell –
FAnne Cooke –
FWes Foster –
FAlex Karavasilis –
FJoanne Poole –
FMichael Yerman –
Nineteen-Time Sterling R
FJan Hayden –
Nine-Time Sterling R
FJeanne Turnock –
Nine-Time Sterling R
FWilliam Armstrong –
Ten-Time Sterling R
FMary Lou Kaestner –
Ten-Time Sterling R
FJudy Morri –
Ten-Time Sterling R
FNancy Simpers –
Ten-Time Sterling R
FHarold Huggins –
Seventeen-Time Sterling R
FNancy Hubble –
Twenty-Time Sterling R
FWomen’s Council of Baltimore
– Twenty-Time Sterling R
FDistinguished Sales Club of
Prince George’s County –
Twenty-Two-Time Sterling R
FWomen’s Council of PG –
Twenty-Two-Time Sterling R
Capital Club
FCheryl D Abrams
FPhyllis Adam
FJeff Sussman (Advantage Title
Company)
FJeanie Ahearn
FRonald A Anderson
FJean R Andrews
FFrederick W Archer
FJenni Koontz (Associates Title
Services, Inc.)
FBrian D Austin
President’s Circle Members
Pictures left to right: JoAnne Poole, Gloria Farrar, Cathy Werner, Carole
Maclure, Steve Meszaros (MAR President), Ilene Kessler, and Adam Cockey
28
FMichael M Ball
FWendy I Banner
FKathleen F Beadell
FKacem Benali
FJames H Billingslea Jr
FMelissa K Bishop
FRusling D Blackburn
FSharon L Blackett
FBrenda Blaney
FJames M Blaney
FGwenn Bockelmann
FCarole L Bowen
FJohn P Bragale
FMargaret R Breerwood
FLynette L Bridges-Catha
FDamian E Buckley
FCam A Bunting
FTracy Burke
FSara Lou L Cardwell
FWilliam A Castelli
FRobert R Castro
FCollette B Cavegn
FAnita M Centofanti
FMichael Christofaro
FMichael M Cohen
FJames M Coley Jr.
FAndie J Corby
FSara Demb
FRobert R Denny
FAnthony R. DeVol
FF Ruth Dickie
FGary H Ditto
FSheila J Dodson
FConnie Dube
FArthur H Dunning
FMelinda L Estridge
FGregory J Ford
FJohn A Ford
FJoe Fraser
FLeslie G Fulford
FCarl S. Gewirz
FElizabeth A Gilliland
FSharyn Goldman
FRobert Ruggieri (Goldstar
Select Realty, LLC.)
FLisa C Griggs
FSusan E Hale
FEdward G Haraway
FSteve Harper
FJames R Haskins
FMynor R Herrera
FBarry Hess
FDebora E Hileman
FGregg B Holland
FMark S Holloway
FThomas H Hough
FJoanie M Hynes
FDonice M Jeter
FMarla Johnson
FGuy D Josey
FVera Fontana (Keller Williams
Realty Consultants)
FRoberta D Kimball
FBob Kimball
FRichard E Kinard
FEleanor S Kott
FTicia M Kouvaris
FYvonne Hardy (Lakeside
Title Co.)
FAnthony C Launi
FLewis F Laws
FMichael E Leaf
FScott M Lederer
FMary A Lee
FBobby Lee
FJohn L Lesniewski
FThomas P Levin
FCarol Ann Little
FSteve Lowe
FTyna Lucke
FDiane M Mahaffey
FSanthy Mallios
FDiane M Marsden
FCynthia A Massari
FDouglas W McClive III
FMichael McGreevy
FSharon A McKenna
FFrank A McKnew
FAli Mansouri (Metropol
Realty, Inc.)
FDeborah A Meushaw
FDeAnna W Miller
FKaren Miller
FShannon Miller-Lutz
FDeborah Milliner
FAlexandra Miskimon
FDonna Moffett
FLinda A Moran
FEldad Moraru
FLeRoy S Morton
FNnaemeka A Obiegbu-Chima
FPeter O’Donnell
FLynn Boynton (Olde Key Title,
LLC.)
FMartin D O’Toole Jr
FSharon Owens
FMargaret C Poss
FStephanie H Rall
FRobert G Ramoy
FKelly Renfro
FSuzanne Reynolds
FWillie M Rhone
FNed Rich
FAmy Ritsko-Warren
FSilvia S Rodriguez
FNoni Rondeau
FRandall M. Rothstein
FBrian Austin (Royal Realty,
LLC.)
FBradley J Rozansky
FJoseph Rubin
FDiana Rucci
FElaine W Sawyer
FNancy L Schwiesow
FMartin M Signore
FSelena Smart
FAnthony SOS
FJohn W Steffey Sr.
FCraig J Strobel
FRonald L Sullivan
FPatricia A Terrill
FJudy C Tyree
FJuan A Umanzor Jr
FWilliam Van Horn
FVictor D Watson
FShelley Weatherholtz
FPatrick A Weed
FNorman P Wehner
FJason Weszka
FBruce C Whitcomb
FCathy L. Willet
FPhilip L Wineman VII
FTim Winter
FTammy L Wood
$99 Club
FKimberly M Adkins
FJeff Sussman (Advantage Title
Company)
FRoselyn Agee
FEugene S Albert Jr
FLewie A Aldridge III
FJacqueline Alexander
FAllan P Amernick
FWilliam A Ampofo
FLeon W Andris
FJeffrey Annis
FJohn F Argentino
FDouglas J Ashley
FBenjamin Atha
FSteve L Atkocius
FJeffrey P Aumiller
FBarry B Bailey
FSusan K Balderson
FCynthia L Barron
FDebbie Baxter
FWilliam F Beauchamp
FLinda D Bennett
FJoel D Berger
FStuart A Berman
FJanet L Bernard
FDonald Berry
FDan G Betsher
FDawn Bever-Stewart
FDonald L Biedenback
FSally A Bielaski
FDouglas C. Bigelow
FDiane R Blake
FCarolyn Blanchard-Cook
FHarry W Blondell
FGary Bockelmann
FNancy Boehmer
FWilliam H Bohn
FSterling E Bollinger Jr
FAchala Bonde
FJason Borowy
FRobert L Bostick
FWilliam G Bowen
FNancy S Bowlus
FPamela A Boyle
FFred C Brand
FPatricia M Breidenbach
FG V Brenneman Jr
FDonald N Briggs
FTimothy A Brinkman
FJonathan R. Bromberg
FMaria A Brown
FMelissa A Brown
FHollis T Brown
FDawn C Brown
FStacy E Brunner
FLeo A Bruso
FCynthia N Buniski
FJohn M Burgess
FRobert C Burkheimer
FLynne Burklo
FF(Chip) Burnett
FW Corey Burr
FWilliam E Burris
FLinda V Burton
FSuzanne Burton
FVilna Byers
FDeborah Cain
FDesiree A Callender
FSonatta S Camara
FLisa S Cameron
FBoyd J Campbell
FMichelle Campbell
FJ. J Casey
FChris P Centineo
FJoan W Cerveny
FLane A Chaisson
FLin Chen
FWilliam M Chesno
FHerbert E Chisholm
FJann Clark
FGarnett Y Clark Jr.
FThelma K Clark
FWm N Clark
FKathleen M Clark
FColdwell Banker
Residential Brk.
FBernadette L Cole
FJohn A Coller
FJohn J Collins
FSharon M Connell
FRobert M. Connelly
FWilliam J Connor
FCarolyn T Cook
FPeter S Copenhaver
FJeffrey Coppage
FConcetta B Corriere
FLou Ramsay Cotta
FDean E Cottrill
FJames B Coulter Jr.
FGerald A Cousineau Jr.
FNeda R Cox
FDaniel F Craney
FCarol Sue Crimmins
FMartin J Cronin
FGeorge H Cronin
FJennifer L Cropper-Rines
FChristopher T Cull
FMark Cunningham
FRosalie D Curran
FSharon Curtiss
FAlan F Dalton
FTerence F Daly
FJ. Nicholas D’Ambrosia Sr.
FScott Danko
FFern Dannis
FRhonda C Darden
FMatthew Dattilio
FAnn B Davis
FAnita T Davis
FHerbert A Davis
FKatherine A Davis
FMichael D Davis
FRobert L Davis Jr
FElsie L Davison
FJoyce L Deale
FRachel A DeHanas
FMichael Demyan
FJohn H Denick
FMartin C Dennis
FDiane Y Derr
FJonathan W Dey
FKevin J Dey
FJames C Diamond
FDenise M Diana
FLinda C Dieter
FStanley Dill
FAnngellic W Dinkins
FBarbara Discenza
FJames F Dixon
FGertrude O Douglas
FPatricia A Dowtin
FTillie A Doyle
FBetty A Drury
FJulie P Duley
FJohn T Dunnigan
FJohn Dwyer Sr
FBonnie G Dypsky
FMaureen A Earp-Wood
FCatherine Ebersberger
FJames K Eder
FJean M Elden
FChris Jett (Elite Marketing &
Sales, LLC.)
FMary Ann Elliott
FClausen Ely III
FKira Epstein
FNorma S Epstein
FNancy S Erickson
FVernon L Esham
FPaul Kouvaris (Excello West
Extermination Co, Inc.)
FRoger N Fairbourn
FTerri Farri
FPaul L Faulstich Jr.
FKevin P Fay
FJames Fegan
FPaul J Fenton
FFrank G Ferguson
FMarianne S Ferguson
FSteve L Ferguson
FMargaret M Finn
FSam S Fisher
FWilliam J Fitzgerald
FDaniel Walsh (Flat Rate Real
Estate, Inc.)
FCarl T Franzen
FLeonard I Frenkil Sr.
FCandice L Friday
FMartin Friend
FMark C Fritschle
FTim Gallagher
FThomas F Gallagher
FCarol J Gamble
FGeorgeanna Garceau
FOscar R Garcia
FJoan E Gardiner
FLuciano Gargano
FMarianne V Garrison
FMichael C Gary Sr.
FRichard E Gatchell
FMary E. Gawler
FAgha K Ghahari
FCarolyn Gibbs
FChristine A Giglio
FTony S Giglio
FSharon P Gilkey
FKevin E Gilligan
FJennifer Glass
FMalicka O Gnon-Konde
FRobert R Golden
29
Leaders of the PAC
FAshton G Gonella
FMichael P Goodfellow
FKevin R Goodnight
FJudith A Gordon
FSylvia Gorman
FChase C Gove III
FJohn J Grady III
FNolen J Graves
FChristine L Gray
FWilliam D Gray
FMike Graziano
FRebecca F Greco
FElizabeth A Green
FJanet J Greene
FCharles M Gregg
FLinda S Gregg
FDeborah K Grimm
FHarold C Groom
FJames O Gross
FKatie E Grove
FMary M Groven
FAudrie M Gue
FAlice Guy
FCraig Harshman (Hagerstown
Management Corp.)
FSayed A Haghgoo
FAlan Halle
FPeter A Hamelman
FMary C Hamersley
FMary Ann Hand
FMarie A Hardin
FDarlene Harenberg
FMelvin F Harf
FPhillip E Harkins Sr
FRonald E Harman
FMarvin W Harmon
FThomas Harner
FVernell E Harris
FShari L Harris
FTheo Harris
FJohn A Harrison
FKristen L. Hart
FElizabeth M Hays
FSigrid S Hayward
FIrene E Heller
FCarol Henry
FDessie Herbert
FElsie M Herbst
FKarol A Hess
FJoseph B Higdon
FWanda J Higgs
FGwendolyn Hill
FKim A Hills
FHelen G Hillstrom
FSharon K Hiner
FHistoric Highlands Assn
FLawrence J Hogan Jr.
30
FPatricia Cucchiella (Home
Realty, LLC.)
FJames B Hooper
FLucia P Hopkins
FClarence E Horst
FH. L. (Chip) Hosford Jr.
FIrma D Houck
FSara L Hourihan-Taylor
FAndrea R Howe
FEdward B Howlin Jr.
FJoan P Hozik
FLarry R Hudson
FStacey Hughes
FJudy Ann Ingram
FIan Parrish (Investors United
Real Estate School)
FJudith E Isom
FDeborah J Iversen
FSubbarayudu Jakkampudi
FGary L James
FAntoinette M Jarboe
FAnanda Jayakody
FFrank P Jenkins
FRobin L Jerkins
FVeronica A Jessamy
FAnn F Johnson
FKathy D Johnson
FRobert L Johnston
FSharon S Johnston
FCandice E Jones
FR Bruce Jones
FDenise Jones
FFlorence L Jordan
FAbraham Joshua
FRose Marie Jung
FPatrick J Kane
FDarlene E Kegel
FPaula Kelley
FEdwin L Kelly
FHeidi S Kenny
FPritinder Khara
FWilson S Kidwell
FChang K Kim
FKristin L King
FEdisel D King
FFred T Kirsch
FPeter J Klebenow
FClark Q Kline Jr.
FSusan Klukas
FLeah D Knoerlein
FSusan M Knott
FJay S Ko
FElaine S Kogan
FMark K Konka
FPaul Kouvaris
FCheryl T Krebeck
FPaul C Lancaster
FLandmark Community
Newpapers of MD
FAnnette E Lane
FTraudel Lange
FRobert L Langley Sr.
FJoan Sharon S Lanier
FCynthia M Lantz
FR. James Latham Jr
FJoseph Laumann
FLeigh Lawson-Everstine
FWilliam D Leager
FCarol A Leal
FRonald L Leonard
FThomas R Leverance
FCassandra Lewis
FDenise M Lewis
FReuben F Lilly Jr
FArlene O Linn
FMary Llewellyn
FFredericka A Lloyd
FSandra M Lofgren-Sargent
FRobert B Long
FJeremy Loomis
FTheresa D Looney
FJoseph T Loverde
FSteve Lowe
FRobin S Lower
FRobert J Lucido
FFreda K Lusby
FJoseph Lynch
FVaughn H Lynch Jr
FMarvin Lynn
FMichael J Lyons
FSydney L Machat
FPaul R MacKenzie
FAndrew V Mackintosh
FJames R Mackintosh
FDennis P Maguire
FConstance G Manger
FWalter C Mann
FJohn S Margelos Sr.
FWilliam H Marquess 4
FAaron J Marsh
FGilbert D Marsiglia Sr
FWilliam E Martin Jr
FJudith I Martinak
FPaula Martino
FGrace P Masten
FChristine P Master
FJames E Matthews
FJeffrey A Matthews
FBarbara C Mattingly
FBetsy W Matz
FLynn Mauk
FAaron M Max
FMontgomery McCausland
FPatrick McClary
FDavid D McCollough
FWilliam D McCool
FVernee J McFarlin
FAngela F McGhee
FLillie McHale
FMichael J McKenna Jr
FTerrence L McKenzie
FLinda McKinnon
FJoan McLernon
FChristopher D McMahon
FRuth E Means-Grove
FSusan B Megargee
FHarold R Mertz
FCarole J. Milan
FSusan Miller
FKandi Miller
FBrent C Miller
FKimberly Mills
FJoseph J Minieri
FBryan Mobley
FScott Mona
FThomas P Monahan
FPaul E Monger
FSandra N Monger
FBrenda A Monshower
FAllison D Mooney
FLeonard Morrell
FConstance J Morrissette
FStephen Lovellette (Mortgage
One, LLC.)
FCynthia G Moses
FMichael J Muren
FSharon Murphy
FDennis C Murphy
FElizabeth U Murphy
FRichard R Murtagh
FKaren F Myers
FStephanie Myers
FSusan Myszkowski
FPaul C Nam
FBarbara Neville
FPhyllis Newman
FErnest Knight (Next Century
Realty, Inc.)
FKimberly Ann Nicholson
FZitella A Nickel
FVernon J Nily Jr
FJude C Njong
FDonna M Norris
FMark Nosal
FZlatko Novacic
FKim A Nunnally-Williams
FMichael P O’Brien
FCristina L O’Bryhim-Curtis
FJohn Michael OConnell
FJeffrey R O’Connor
FDeborah S O’Hara
FMichael Oleru
FJoseph Olmedo
FJosephine G O’Neel
FJohn C ONeill
FRita R Orcino
FRichard B Orr
FJoan Ostenso
FMarlene E Ott
FSue D Pakulla
FDavid D Palmer Jr
FChristina J Palmer
FNicholas Pantoulis
FSandra S Parker
FBonnita A Parks
FIrene B Parrish
FCharles Parrish
FBarbara Passwater
FMichael W Patrick
FStephen T Paul
FErin M Phelps
FVeera Phillips
FJohn F Pilkins Jr.
FMark A Pine
FRonald B Pitt
FCraig B Pittinger
FJoan Pittroff
FCharles J Plunkert
FDoug Poole
FChristina M Poss
FStephen J Potorti
FA. John Price
FSue Stouffer (Quad State
Realty, Inc.)
FThomas S Rafailides
FJohn B Ragusa
FShoeleh Rahnama
FRick Saylor (RCS Home
Inspections)
FNancy M Reed
FL. Fitzhugh Reese
FJohn E Reid
FWalter A Reiter Jr.
FJanet Reynolds
FBrian T Ridgway
FWilliam B Rinnier Jr
FGayle Roberts
FLois G Robins
FJames J Robinson
FJames C Robinson
FKaren Rogers
FMichael J Rogers
FSally Rogers
FKaren L Rohrbaugh
FEdward D Rollins III
FSusan M Rosko-Thomas
FLarry E Roth
FPatricia A Rowe
FJames L Roy
FRobert C Ruggieri II
FMaryann L Rush
FSherri J Russell
FMary Betsie Russell
FSandy L Sadler
FElisabeth Salchow
FBelinda Sanders
FBrenda K Sarver
FRobert F Sass
FGeorge R Savani
FPatricia M Savani
FSuzanne Schaefer
FTazuko O Schmitz
FMel Schneider
FLouise Schultz
FCarol A Scibelli-May
FGene J Sementilli
FRobert T Sheets Jr
FJames W Shelton Jr
FJonathan Shively
FPaul Kouvaris (Signs, Signs,
Everywhere Signs, LLC.)
FJohn Sikorski
FMarvin Simmons
FVito Simone
FLinda F Simpson
FAlfred L Singer
FSarah L Sinnickson
FElizabeth A Skidmore
FJim Skirven
FJeffrey Z Slavin
FMark D Sloan
FBrenda C Small
FAndre P Smith
FPatricia B Smith
FBianca M Smith
FDouglas M Smith
FTodd M Snook
FRoseAnn C Spalt
FLisa M St. Clair
FDebbie Stallings
FCharlene Stammer-Connery
FGlenn B Staples
FRobert Caspar (Steamboat
Associates, LLC.)
FMarvin Steen
FCarl V Stein
FStuart J Stern
FConnie M Stommel
FGregory M Stone
FPamela D Stone
FDavid Straitman
FStephen W. Stran
FJoan M Strang
FJulie K Strohman
FHenry A Strohminger III
FDavid H Stromberg
FMax Sweet
FJudy H Szynborski
FDoannie A Tambascio
FJohn W Tauber
FBosley C Tawney
FRonald G Taylor
FMaria A Terry
FDavid L Therrien
FTimothy K Thomas
FEdward D Thomas
FRhoda Toback
FKeely E Tolley
FKaren J Towne
FKevin M Tracy
FLeland B Trice
FEvelyn K Trimbath
FBeth Truman
FScott D Tucker
FKevin Turner
FWilliam J Turner
FJessica L Turowski
FChad Tyler
FPatrick Ulrich
FMonica S Valentine
FHarry D Van Mater
FDavid R Vane
FJames F Velich
FTeresa Bradford (Versatile
Homes, Inc.)
FPeter R Vidi
FJohn Von Paris
FPam J Wadler
FAnnette M Wagner
FGary W Waicker
FDaniel Walsh
FJames D Ward Jr
FElinor W Warring
FBarry P Waterman
FMareen D Waterman
FBarbara C Watkins
FJeffrey M Weese
FEdward T Wehnert Jr.
FMichael C Weisner
FDavid J Weiss
FWilliam G Weissgerber Jr.
FNicole Werner-Jantz
FBrent Whalen
FBarbara L Whaley
FBarbara F Whitaker
FCharles W White
FEdward A White
FJerry D Whitlock
FNancy A Wiest
FShirley M Wigglesworth
FPaul L Wildey
FKevin A. Wiles
FFarone Williams
FKennita L Williams
FJennifer Williams
FHarlan C Williams
FMark F Wilson
FLinda F Wilson
FRobert Wilson
FSandra K Wing
FRalph W Winkler
FRichard A Winkler
FWilliam R Wootan
FHugh H Wyble
FJohn F Yarish
FJacqueline L Yates
FZhiwei Yu
FJ. Gary G Zentgraf
FDarlene Zepp
FSteven S Zimmerman
FRonald F Zimmerman
Congratulations to ALL REALTOR® Local Boards /
Associations that exceeded their 2009 RPAC Goals!
Anne Arundel County Association of REALTORS®
Bay Area Association of REALTORS®
Carroll County Association of REALTORS®
Cecil County Board of REALTORS®
Coastal Association of REALTORS®
Fredrick County Association of REALTORS®
Garrett County Board of REALTORS®
Greater Baltimore Board of REALTORS®
Harford County Association of REALTORS®
Historic Highlands Association of REALTORS®
Howard County Association of REALTORS®
Mid-Shore Board of REALTORS®
Pen-Mar Regional Association of REALTORS®
Prince George’s County Association of REALTORS®
Southern Maryland Association of REALTORS®
31
Commissioner’s Corner
Mark Feinroth, Esquire
Commission Considers
New Law and Regulations
At the April Real Estate Commission meeting, discussion centered on the
Commissioners discussed these public comments and asked counsel to
proposed continuing education regulations and legislative action taken
draft several modifications to the proposal for review at the May meeting.
during the 90-day session of the Maryland General Assembly.
We expect the Commission to publish the revised proposal in the Maryland
Both the Commission’s legislative proposals were passed and, at this
writing, the Governor is expected to sign them. With regard to the new
law mandating agency law and, for brokers, broker supervision, the
Register later in the Spring or early Summer. There will be another public
comment period as well. We believe that the proposed regulation will be
adopted as a final regulation this year.
Commission will design a standard outline and curriculum for both. The
When the final regulation is adopted, it is likely to require licensees to
law goes into effect for license renewals beginning in January 2012. The
produce picture identification to enter a continuing education class for
Commission will appoint a workgroup of Commissioners, educators and
which the licensee expects to receive credit. This provision is in response
licensees to design the two classes so that the courses will be available at
to a number of accounts of serious problems with individuals signing into
least six months prior to the January 2012 implementation date.
continuing education classes for licensees who were not present. The
The Teams and Groups legislation, effective October 1, 2010, may require
some teams and groups to modify signs, business cards or other advertising
materials. The new law mandates that real estate teams use names
Commission feels strongly that in the interests of the integrity of the CE
system, licensees must identify themselves when taking continuing
education courses.
connected to their affiliated brokerage that must not suggest the team is
Watch for emails and articles in future editions of the Maryland
a free standing brokerage. Advertisements for the team must include the
REALTOR® for updates on these issues. If you have any questions, please
name of the brokerage, the name of at least one licensed team member
feel free to contact me at [email protected]. .
and a telephone number of the broker or branch office manager. In the
hope that any economic impact on licensees can be kept to a minimum,
the Commission plans wide promotion of the new requirements through
emails to licensees, newsletters and the MAR magazine.
On the regulatory side, the Commission has spent more than a year
developing a regulation to strengthen the effectiveness of continuing
education and formally adopt many long-standing policies on course
conduct. A proposed regulation was published on February 26 in the
Maryland Register; mandatory comment period closed on April 15. MAR
submitted written comments, as did some private education providers.
32
Mark Feinroth, Esquire is the Director of Legal and Regulatory Affairs for the
Maryland Real Estate Commission News
Katherine Connelly
Continuing Education
and Teams Legislation
Passed by General Assembly
Two legislative proposals offered by the Maryland Real Estate Commission
HB 406 allows the Maryland Real Estate Commission to regulate real
were approved by the Maryland General Assembly and expected to be
estate brokerage practiced by agent teams and groups. The new law defines
signed into law by Governor O’Malley shortly after this edition of the
a real estate team as two or more associate brokers or licensed salespersons
Maryland REALTOR® goes to print. Both bills become effective October
who:
1, 2010.
Work together on a regular basis to provide real estate brokerage
HB 83 requires all real estate licensees to take a three-hour continuing
services; and, Represent themselves to the public as being party of
education course in agency principles and disclosures under category A of
one entity; and, Designate themselves by a collective name such as a
the fifteen hours of education required for license renewal. The requirement
team or group.
will be effective with licenses renewed starting in January 2012. Brokers,
branch office managers and team leaders must also complete a three-hour
Each team must designate a team leader who has at least three years
course on the requirements of broker supervision. Both the agency and
experience as a licensee. The team leader is responsible for supervising
broker supervision course requirements must be fulfilled before license
other team members and ensuring that the team adheres to all office rules,
renewal in 2012 or 2013, and then once every four years thereafter. The
practices and procedures established by the broker or branch office
Commission plans to design standard agency and broker supervision
manager. Teams must use team names that are directly connected to the
courses that will meet the new requirement.
name of the brokerage to which the licensees are affiliated, and the name
may not use terms that suggest it is a brokerage unto itself. Advertisements
Licensees with a graduate degree in law or real estate will be eligible for
for the team must include the name of the brokerage, the name of at least
license renewal after completing 7.5 hours of continuing education, if they
one licensed team member and a telephone number of the broker or branch
are not licensed as a broker or an associate broker or salesperson designated
office manager.
as team leader or branch office manager. Such a licensee will be required
to complete an agency or legislative update class in alternate renewal years
For additional information regarding implementation of the new
beginning in January 2012.
legislation, please feel free to contact the Maryland Real Estate Commission
at http://www.dllr.state.md.us/license/mrec/ or [email protected].
Katherine Connelly is the Executive Director of the Maryland Real Estate Commission.
For more information, visit http://www.dllr.state.md.us/license/mrec.
33
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34
Extension of Tax Credit Deadlines
for qualified military personnel
For qualified service members who are ordered on a
period of official extended duty, these dates are extended for one year. For these home buyers, the tax
credit applies to sales with a binding sales contract
in place on or before April 30, 2011 and closed by
June 30, 2011. Visit for the overview http://www.
federalhousingtaxcredit.com/service_mem.php
Slideshare.com
Upload and share your PowerPoint & Keynote presentations, Word & PDF documents on SlideShare.
Add audio to make a webinar. Capture leads with
your presentations. Tutorial available.
Issuu.com
Browse through magazines, artist’s portfolios, or
upload your own created documents. A great place
to gather publications and discuss topics you find
interesting. Check it out!
Residential Sales
Anirban Basu
Old Habits are Hard to Break –
Long-Established Trends
Remain in Place
Units Sales Keep Rising,
Sales Prices Keep Falling
In a now-familiar pattern in Maryland, unit sales continued to race higher
in March and April, while average and median sales prices continued to
decline. This is frustrating, as a growing number of communities across
the United States are reporting rising sales prices. The most recent release
of the S&P Case-Shiller Home Price Indices indicates that for the first
time since December 2006, the annual rates of change for the 10-City and
20-City Composites is up on a year-over-year basis (0.6%). However, gains
remain uneven, with 11 of 20 cities experiencing year-over-year declines.
Statewide, average sales prices declined 8.3 percent on a year-over-year
basis in March, and 3.8 percent on that basis in April. Average sales price
declined in 18 of Maryland’s 24 jurisdictions in April, most significantly
in more rural environments such as Caroline (-29%), Talbot (-27%),
Somerset (-26%) and Garrett counties (-25%).
One can certainly speculate endlessly about why this occurred, but a
likely explanation centers around two reasons. These counties are generally less oriented around first-time buyers than the more urban and populated jurisdictions in the Baltimore-Washington corridor, so they have felt
less impact from demand induced by the tax credits. And the unusually
tight credit for second homes would disproportionately affect these same
counties. Both these factors could explain the substantial drop in average
price.
Six jurisdictions registered increases in average sales prices in April:
Dorchester County (+67%), Carroll County (11%), Baltimore City (10%),
Calvert County (4%), Harford County (3%) and Cecil County (1%).
Common features among these markets are a bit more difficult to identify,
but many stand to be heavily affected by base realignment activities now
gathering steam in central Maryland, particularly Harford, Cecil and
Calvert counties and Baltimore City. Carroll County is also likely to feel
some effect by base realignment, though perhaps not as much.
It is also likely that the first-time homebuyer tax credit was disproportionate
in its effect in Baltimore City, Cecil and Dorchester counties, given the
typical price points of housing there relative to neighboring jurisdictions.
Thirteen of Maryland’s jurisdictions recorded declines in median sales
prices in April, down from eighteen in March, suggesting that sales price
momentum is building. The steepest declines were in Talbot (-36%),
Caroline (-30%), and Garrett counties (-28%) in April; the likely causes are
the same as those for average sales price dynamics. The largest increases
in median sales price were in Baltimore City (17%), Carroll County (13%),
and Kent County (9%). The increase in Kent County occurred, however,
on the basis of just eight sales in April 2010, the same level as the March
sales figure.
As we’ve seen for many months, the ongoing housing market recovery has
largely been reflected in unit sales increases. In March, unit sales were up
29 percent on a year-over-year basis statewide. In April, the gain
approached 41 percent.
Unquestionably, these sales gains reflect the impact of the first-time and
move-up buyer tax credits. One of the questions that REALTORS® among
others have asked is whether the momentum in the market for existing
homes will be upset with the expiration of the tax credit program.
Conventional wisdom is that the number of settlements will remain high
through mid-year, and then begin to decline in the absence of tax credit
inducements.
That remains to be seen. For now, there is ongoing sales momentum,
which helps stabilize sales prices and hammer away at the active inventory
of unsold homes. The hope is that strong seasonal forces will support
activity in July and August, and that buyers will remain interested in the
Continued on page 36
35
Residential Sales
market thereafter as evidence of home price increases becomes more
apparent. Rising home price trends would create a greater sense of urgency
among buyers, many of whom have become accustomed to price declines
and therefore have adopted a wait and see attitude, even in a buyer's
market. Buyers may also be enticed into the market if there are emerging
fears of mortgage rate increases, though for now mortgage rates remain
well behaved.
In April, counties posting the largest year-over-year increases in unit sales
were Prince George’s (86%), Harford (79%), Dorchester (75%), Caroline
(73%), Charles (65%), Cecil (51%), Talbot (46%), Baltimore (43%),
Montgomery (41%) and Anne Arundel (34%). Many are directly impacted
by base realignment and/or offer homes at prices attractive to first-time
buyers , notably Prince George’s County.
Only two counties recorded unit sales declines in April on a year-overyear basis: Kent (-20%) and Allegany (-10%). Given an average sales price
of $98,500 and a median sales price of $93,000, Allegany County would
appear to be precisely the type of market with most appeal to first-time
buyers. It may be that the tax credits generated less impact on Allegany
County over the past year because of a relative dearth of employment
opportunities vis-à-vis other regional jurisdictions.
36
Looking Ahead
For now, the expectation is for ongoing recovery. Forward looking
indicators remain positive. Pending sales in April were up 53 percent on
a year-over-year basis. The corresponding statistic for March was 45
percent. Though it is true that pending sales were in many cases motivated
by the impending expiration of the tax credits (eligible buyers had to be
under contract by April 30th), the pending sales statistic is consistent
with the notion that underlying demand for housing in Maryland is
strengthening. Moreover, the active inventory of unsold homes fell below
44,600 in April, down from 46,117 a year earlier. In a number of
jurisdictions, including Montgomery and Howard counties, the active
inventory of unsold homes is now low enough to be consistent with
equilibrium, implying that home prices are set to rise in those communities
even in the absence of tax credits.
Anirban Basu, Sage Policy Group, Inc.
April 2010 vs. 2009
March 2010 vs. 2009
UnitsAverage Price
County 2010
UnitsAverage Price
2009 Change
County 2010
35 34.30% $104,317 $138,379 -24.60%
Allegany 45
2009 Change 2010
2009 Change 2010
2009 Change
Allegany
47
Anne Arundel
387
352
9.90% 339,069 380,072 -10.80%
Anne Arundel 471
351 34.20% 341,207 349,031
-2.2%
Baltimore City
421
369 14.10% 150,893 153,060 -1.40%
Baltimore City 487
391 24.60% 157,771 143,319
10.1%
Baltimore County
518
419 23.60% 258,642 270,312 -4.30%
Baltimore County 625
436 43.30% 255,688 261,653
-2.3%
Calvert
62
58
Calvert 77
58 32.80% 288,157 277,430
3.9%
Caroline
21
14 50.00% 152,527 150,557
1.30%
Caroline 19
Carroll
87
79 10.10% 283,540 287,323 -1.30%
Carroll 125
112 11.60% 300,496 270,779
11.0%
Cecil
51
50
2.00% 212,707 231,340 -8.10%
Cecil 68
45 51.10% 231,195 228,053
1.4%
Charles
113
92 22.80% 236,305 266,429 -11.30%
Charles 142
86 65.10% 252,600 267,170
-5.5%
Dorchester
16
17 -5.90% 143,529 154,234 -6.90%
Dorchester 28
16 75.00% 244,523 146,432
67.0%
Frederick
237
171 38.60% 259,627 262,235 -1.00%
Frederick 257
203 26.60% 251,391 259,424
-3.1%
Garrett
16
13 23.10% 404,031 341,531 18.30%
Garrett 17
Harford
165
149 10.70% 246,224 265,754 -7.30%
Harford 245
137 78.80% 261,685 254,756
2.7%
Howard
230
177 29.90% 378,875 364,284
Howard 252
205 22.90% 387,340 390,821
-0.9%
Kent
8
8
6.90% 286,288 309,577 -7.50%
4.00%
0.00% 324,781 361,000 -10.00%
Kent 8
50 -10.00% $98,500 $114,028 -13.6%
11 72.70% 184,695 260,924 -29.2%
16
6.30% 332,294 441,150 -24.7%
10 -20.00% 205,125 234,480 -12.5%
Montgomery
779
649 20.00% 399,723 412,552 -3.10%
Montgomery 995
Prince George’s
756
380 98.90% 201,079 243,884 -17.60%
Prince George’s 787
Queen Anne’s
34
21 61.90% 396,159 455,286 -13.00%
Queen Anne’s 28
Somerset
16
7 128.60% 120,175 238,414 -49.60%
Somerset 14
12 16.70% 128,850 174,552 -26.2%
St. Mary’s
79
48 64.60% 272,501 304,167 -10.40%
St. Mary’s 76
64 18.80% 264,399 299,185 -11.6%
Talbot
27
18 50.00% 530,051 447,878 18.30%
Talbot 32
22 45.50% 347,618 473,391 -26.6%
Washington
91
82 11.00% 154,004 186,883 -17.60%
Washington 101
80 26.30% 168,108 192,325 -12.6%
Wicomico
58
37 56.80% 158,330 189,124 -16.30%
Wicomico 59
49 20.40% 169,643 206,771 -18.0%
Worcester
111
Total
105
5.70% 286,037 365,823 -21.80%
4,330 3,350 29.30% $274,142 $298,843 -8.30%
Figures reflect resales and new properties. Residential resales
are reported by MRIS ® and local boards MLS systems.
Worcester 115
708 40.50% 422,642 426,182
-0.8%
424 85.60% 197,801 245,146 -19.3%
24 16.70% 327,493 344,975
-5.1%
100 15.00% 295,344 313,869
-5.9%
Total 5,073 3,610 40.50% $283,154 $294,406 -3.8%
Figures reflect resales and new properties. Residential resales
are reported by MRIS ® and local boards MLS systems.
37
From the Hotline
Charles A. Kasky, Esquire
New Approach
to Broker Compensation
Q. No matter how much I read (and I really do read) about RESPA and
administrative fees, my head keeps spinning. I don’t know what the law
really requires, or whether a broker in Maryland can charge a fee. Recent
articles seem to recommend a new approach to compensation. Is this
permitted in Maryland and does it address my concerns?
A.
You are not alone. Even lawyers who specialize in Real Estate
Settlement Procedures Act (RESPA) law are scrambling for answers. Early
in 2009, a federal district court ruled in Busby v. JRHBW Realty, Inc. that
an administrative fee of $149 paid by a home buyer to the broker that
represented her was not sufficiently related to any specific settlement
service performed for her benefit, resulting in a violation of Section 8(b) of
RESPA. That section prohibits charging for “real estate settlement
services” unless the fee charged is for “services actually performed.”
The court found that the fee was an additional charge to the buyer to
defray the overall costs of brokerage services, including the broker’s
overhead and administrative costs. However, because the fee was separately
itemized on the settlement statement from the percentage brokerage
commission, and not specifically justified as compensation for other
discrete “real estate settlement services” provided, the court viewed it as
a duplication of the percentage commission charges, thereby rendering it
an unearned fee in violation of RESPA.
NAR then asked HUD, which enforces RESPA, for a clarification on the
intent of Section 8(b). Earlier this year, HUD responded in a letter that
although RESPA regulates how a real estate broker discloses its charges, it
doesn’t regulate how those charges are determined. “The commission
may be determined using a flat fee, a percentage of the sales price, or a
combination of these methods,” HUD Counsel said.
In January 2010, the MAR Listing Agreement and Buyer Representation
Agreements were amended to address this development. Broker Compensation is no longer broken into component parts. The broker should simply specify what the compensation is in terms of percent of sales price, flat
fee or some combination. Additionally, brokers should disclose fees and
commissions as a single figure on the HUD-1 settlement statement.
In summary, brokers should review how they characterize compensation.
Placing separate labels on or disclosing components of compensation in
different parts of the brokerage agreement exposes the broker to the
allegation that each separately labeled charge represents a fee for a distinct
service. Disclosure of the firm’s compensation should clearly indicate
that both the percentage-based and the flat fee components represent
payment for services provided by the brokerage. These combined amounts
should be disclosed in the 700 section of the HUD-1 as the broker’s
compensation.
Finally, do not create the impression that any particular fee is for a separate
service if that is not the case. If that is the case, ensure the charge is
comensurate with the value of the service.
Charles A. Kasky, Esquire, Vice President of Legal Affairs for the
Brokers should make clear that administrative fees are a part of the overall
real estate commission and are tied to services performed. The key is to
make sure that the commission figure on the HUD-1 lines up with the
commission structure contained in the listing agreement or buyer agency
agreement.
FREE Legal
Hotline
38
1-800-888-1272 • Monday, Wednesday and Friday • 10am – Noon and 2 pm – 4 pm
www.mdrealtor.org • Complete an Online Form available in the Legal Hotline tab
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maryland realtor - Maryland Association of Realtors

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