July/August - Austin Board of REALTORS

We’re Working For You
July/August 2012
The Rules
Have Changed
Understanding the Texas Real Estate
Commission’s New Licensing Requirements
INSIDE:
ABoR Passes Rules to Clarify IDX
TREPAC Fundraising at 86 Percent
Legal Topics: How to Avoid Losing Your
Property by Adverse Possession
this issue
chairman’s corner
industry news education & events government affairs mls update member spotlight ethics case study legal topics facts and figures in the news Volume 19 ∙ Issue 4 ∙ July/August 2012
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The Austin REALTOR® is published bi-monthly
by the Austin Board of REALTORS®, 10900
Stonelake Blvd., Suite A-100, Austin,
Texas 78759-5826, 512-454-7636.
Should you wish to receive this publication
electronically, update your preferences in
the “My Account” section of Abor.com.
Members are encouraged to submit articles,
announcements and ideas to marketing@
abor.com. Deadline for submission is the
10th of the month prior to publication date.
For advertising information, visit Abor.com;
information is available in the “About ABoR”
section.
Editorial Director
Angela Brutsché
Senior Editor
Lara Grant
Graphic Designer
Stephanie Toal
Contributing Editors
Autumn Rhea Carpenter, Marketing
Angela Diaz, Marketing
Anna Kong, TREPAC
Kate Mack, MLS
Christina Ortiz, Government Affairs
Find us on
14
Copyright © 2012 Austin Board of realtors®
All rights reserved.
The Rules have Changed
Understanding the Texas Real Estate Commission’s
New Licensing Requirements
16
ABoR Hosts Mercedes
Raffle for ABoR Foundation
Scholarship Program
2
Austin REALTOR®
Cover Image: © iStockPhoto.com/Neustockimages
Top 10 Evernote Tips
and TAR Leaders Meet
17 ABoR
22
for Buyer’s Agents
for Region 15 Meeting
ABoR Unveils
More Trees Equal More
20 Green for Homeowners 24 Strategic Plan
Tighter FHA Loan Eligibility
River Place Homes
21 Three
Burgularized at Open Hous- 26 Rules and the Implications
es on Sunday
[May 6, 2012]
July/August 2012
It’s a Round Up,,Y’all
Lasso a Booth or Partnership Today
Jump on the band wagon before you get left in the dust.
The 31st annual Realty Round Up is October 9. Partnerships
and booths are still available, but will be gone before you
can say “draw.” There are a variety of partnerships to
fit any partner’s boot scootin’ boogie. New to 2012, the
Bronze Partner level offers increased booth visitation and
networking opportunities through the new RRU punch
card. Attendees are given punch cards upon entry and
encouraged to get them punched at all Partner
exhibitor booths for entry into the grand-prize drawing.
Pony up before all the opportunities are gone. Reserve your
booth or partnership before August 15 and ensure your
company name appears in the event program and on the
map. Mosey onto www.abor.com/roundup or contact Gina
Willemsen at [email protected] or 512-454-7636, ext.
1601 to reserve a booth or partnership.
Keep your ear to the ground for information on free MCE
courses at the event and an illustrious keynote speaker.
This year’s Round Up features free parking and entry.
Now get to breaking in those new boots, but tell
Trigger you’ll have to leave him behind.
Mark the date:
Upcoming August Broker/Manager Forum
You’re invited to attend the August 1 Broker/Manager Forum that will cover agent
safety in the office, online, at open houses and everywhere along the way. The forum
will include instruction by safety experts. Visit www.abor.com/broker to RSVP for this
informative session. We hope to see you at the Broker/Manager Forum, located at the
Austin Board of REALTORS®, 10900 Stonelake Blvd., Ste A-100. Until then, find out
more about keeping safe while on the job at www.realtor.org/safety.
July/August 2012
Austin REALTOR®
3
2012 Board of Directors
2012 Officers
Chairman of the Board
Leonard Guerrero
J.B. Goodwin, REALTORS®
P: 512-502-7800
F: 346-3711
[email protected]
Chairman-Elect
Cathy Coneway
Stanberry & Associates
P: 512-422-5677
F: 327-3644
[email protected]
Secretary/Treasurer
Bill Evans
Austin Real Pros,
REALTORS®
P: 512-458-3730
F: 458-3736
[email protected]
Immediate Past Chairman
Judith Bundschuh
Catalyst Realty
P: 512-329-5581
F: 866-872-2608
[email protected]
President & CEO
Matt Maire
Austin Board of REALTORS®
P: 512-454-7636
F: 454-5369
[email protected]
2012 directors
David Burton
Horizon Realty
P: 512-342-1800
F: 275-0600
[email protected]
Aaron Farmer
Texas Discount Realty
P: 512-323-0400
F: 857-0151
[email protected]
Janet Murdock
J.B. Goodwin, REALTORS®
P: 512-502-7800
F: 346-3711
[email protected]
Chad Cardani
Keller Williams Realty
P: 512-346-3550
F: 346-9634
[email protected]
Cheryl Jenkins
RE/MAX Capital City III
P: 512-381-2220
F: 236-5151
[email protected]
Julie Potts
Hill Country Property
Management
P: 512-346-3309
F: 346-2359
[email protected]
Barb Cooper
Coldwell Banker United,
REALTORS®
P: 512-343-7500
F: 343-1224
[email protected]
Susie Kang
Joa Realty
P: 512-480-8384
F: 428-8119
[email protected]
Sharon Rosshirt
Stanberry & Associates
P: 512-327-9310
F: 327-3644
[email protected]
Helen Edwards
Coldwell Banker United,
REALTORS®
P: 512-691-1960
F: 691-1990
[email protected]
FOR LEASE WE WANT TO BE YOUR SOURCE
FOR PROPERTY MANAGEMENT!
PROPERTIES, INC.
4
Refer your management prospects to us.
We send them back to you for the sale.
Referral Fees Paid/Brokers Protected
346-2121
Call for details: 512-346-2121
Since 1979
www.hullproperties.com
Austin REALTOR®
Member of NARPM: National Association
of Residential Property Managers
July/August 2012
chairman’s corner
Greetings,
It’s that time of year again at the Austin Board of REALTORS®. We have opened sign up to
our members to volunteer for 2013’s committees. If you have not volunteered before, now
is a great time to review the many different committees we have available. There are tried
and true favorites like Education and Professional Development, Governmental Affairs and
TREPAC, Realty Round Up, and Grievance and Professional Standards. There will also be
new additions to the committee list for 2013, including Property Management, Community
Relations and Affiliate Committees. Information on all the committees can be found at
www.abor.com/committees. Each of our committee members greatly contribute to the
success and betterment of this Association. As a nonprofit, the Austin Board of REALTORS®
relies heavily on its members for insight, growth and development. Member involvement
is the key to making the Austin Board of REALTORS® the best it can be, and we thank our
past and present volunteers.
Coming up in December is the 2013 Dancing with the Stars of Real Estate Installation
and Awards Gala. The event will be held to honor industry movers and acknowledge the
incoming leadership for the Board of Directors. Currently, we have a variety of partnerships
available for the event. It is a great event to be involved in and an excellent way to get
your business’s name out there. If you’re interested in participating, visit www.abor.com/
installation to find out more.
I look forward to seeing you involved next year as well as at the many upcoming events.
Leonard Guerrero, ABR
2012 Chairman of the Board
DIAMOND CLUB MEMBERS
Diamond Club participants volunteer additional financial support to the Association’s programs.
Please remember them when doing business, and always use an Affiliate first.
July/August 2012
Austin REALTOR®
5
industry news
Association Committee Positions Now Open
Do you strive to make a difference by leading your Association towards a
successful future? Now is the time of year to view the variety of positions
available within ABoR committees and get involved. If you’re a primary or
secondary member of ABoR and think you would be a strong addition to one
of our valuable committees, sign up by August 1. Committee assignments are
announced in November and December each year and require at least a oneyear commitment.
For more information on all the ABoR committees and volunteer positions,
visit www.abor.com/committees or contact Vicki Harris in ABoR’s Executive
Department at 512-454-7636 or [email protected].
Save the Date for November REALTOR® Expo
Registration is now open for the REALTOR® Conference and Expo in Orlando this
fall. Make plans to attend the November 9 – 12 conference; it is sure to renew
your real estate spark. Start the long weekend off with a Thursday morning 5K,
sign up for a variety of professional education opportunities and spend a night
out with your industry peers. You can register and get the full schedule of events
at www.realtor.org/convention.nsf.
Build a Valuable Relationship with Each Client
Your biggest value-added benefit is yourself. Today’s consumers want to work
with a REALTOR® who is real, someone who listens, seeks to understand and is
clear about what sets them apart from all the other agents around. An expert at
Better Homes and Gardens suggests asking “what” questions to gain insight into
your client’s needs. When the person you’re working with expresses a concern,
you should be the first one reassuring him/her that you will find an answer.
Then do it. Don’t underestimate the power of letting people in. Share with your
clients your communication style, what they can expect from you throughout
the process and an example of an obstacle you’ve overcome in the past. These
small bites of information will make new clients feel assured that with you in
their corner, they have not bitten off more than they can chew. Read the full blog
post online at http://bit.ly/MnZMxv.
How Can We Secure Future Housing for Baby Boomers?
A recent report published by the Center for Housing Policy takes a close look
at the impending dilemma of housing the aging baby boomer population in the
U.S. Because the population of individuals over the age of 65 is set to jump
120 percent in the next 40 years, the report proposes “demand for housing will
shift dramatically and the need for services to help older adults age in place will
grow exponentially. Are we prepared?” This fascinating report discusses policy
changes, housing cost burdens and options for this golden generation. Get an
in-depth look at the questions we will have to answer at www.nhc.org/media/
files/AgingReport2012.pdf.
6
Austin REALTOR®
July/August 2012
Foreclosure Scams on the Rise
Dishonest folks look for vulnerabilities before they strike. According to the
National Association of REALTORS®, mortgage foreclosure scams had risen
nearly 60 percent in April of this year. Scammers often pose as Homeownership
Preservation Foundation (HPF) counselors and spout information about
government programs to engage homeowners. If you have clients or know
people who are at risk of foreclosure, help them to know the following tips about
avoiding scammers. If the alleged HPF expert asks for a fee in advance to modify,
refinance or reinstate a mortgage; guarantees they can stop a foreclosure or get
the loan modified; advises the homeowner to stop paying the mortgage company
and start paying them instead; or pressures the homeowner to sign over the title
to their home, the homeowner should be wary. Your clients can be sure they are
working with a trained expert by calling HPF directly at 888-995-HOPE.
Positive Momentum for Texas Real Estate
In this year’s first edition of the Texas Quarterly Housing Report, the Texas
Association of REALTORS® delves into the positive upswing seen by the real
estate industry across Texas in the first quarter of 2012. Jim Gaines, Ph.D.,
an economist with the Real Estate Center at Texas A&M University, said, “We
believe several factors are driving the strong performance of the first quarter,
including continued job growth in Texas and some increased access to credit
for homebuyers. Most of all, we’re starting to see a shift in Texans’ attitudes
toward real estate.” Read the full article and hear from experts at http://prn.to/
KE5dGw. This optimistic trend is echoed in our local market as seen in monthly
MLS statistics releases available at www.abor.com/news_media/statistics.cfm.
PT50 Accepting Entries for Outstanding REALTORS®
The summer Olympics are here, reviving competitive natures and discussions
of metal medallions. And now is the time to add one more type of metal to
your conversations—platinum. Platinum Top 50 REALTORS® (PT50) is now
accepting entries for its exclusive awards. If you or someone you know is a
top-notch REALTOR®, don’t hesitate to complete an entry. PT50 winners gain
valuable media coverage, increased opportunities through creative marketing
and access to engaging MCE classes. Winners are chosen based on four
criteria: sales production, closed sides, education and industry involvement as
well as community involvement. To submit a form for a chance to receive this
prestigious award, go to http://pt50austin.com.
REALTOR® Store Announces Monthly Basket Winners
ABoR’s REALTOR® Store is your go-to place for all of your business-related
accessories. Many members frequent the shop to get signs, forms and
all manner of tools necessary for daily activities. The next time you make
a purchase in the store, know that you are automatically entered into the
monthly drawing for a basket full of REALTOR®-specific items. Good luck!
Congratulations to Roberto Talamas of Keller Williams Realty who took home
the basket in April and Ed Neuhaus of Neuhaus Realty Group who won the
May bounty.
July/August 2012
Austin REALTOR®
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education & events
Four Steps to Making Texas Affordable Housing Your Specialty
ABoR is offering a four-part series on affordable housing that certifies REALTOR® participants
as Texas Affordable Housing Specialists. In 12 hours participants will learn the ins and outs of
the Federal Housing Administration and an array of affordable housing subjects. Those subjects
include low-cost financing, manufactured housing and lending for workforce housing. Recipients of
the TAHS certifications are expected to walk away from the series better able to serve current and
additional markets and their community through the sharing of their knowledge and education of
others. To register for classes and read in-depth descriptions of all the courses, visit www.abor.
com/education.
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Austin REALTOR®
8:30 a.m. – 5:30 p.m.
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1:00 – 3:00 p.m. |
1:00 – 4:00 p.m. |
1:30 – 4:30 p.m. |
6:00 – 10:00 p.m. |
8:30 a.m. – 12:00 p.m. |
1:00 – 4:30 p.m. |
9:00 a.m. – 12:00 p.m. |
11:00 a.m. – 1:00 p.m. |
8:30 a.m. – 12:30 p.m. |
1:30 – 3:30 p.m. |
8:30 a.m. – 12:30 p.m. |
1:00 – 4:00 p.m. |
1:30 – 3:30 p.m. |
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5:00 p.m. |
2 | 1:00 – 4:00 p.m. |
3 | 8:45 a.m. – 12:00 p.m. |
2:00 – 4:00 p.m.
GRI3: Real Estate Brokerage
4-Day Class
ZipForm:What You Need to Know
Professional Dining Etiquette MCE
8Touches – Your Image Matters
MLS Advanced Features & CMA (South location)
ABoR PAC Movie Night
For more information, visit www.abor.com/movies.
TREC Ethics MCE
TREC Legal Update MCE
What’s New and How Do I Use It?
TREPAC Investment
Lunch and Learn, ABoR Auditorium
United Texas: Housing Initiatives That Work
Texas Affordable Housing Help for Homebuyers
Texas Affordable Housing FHA Lending for Workforce Housing
Seize the Power of Your MLS Subscription
Texas Affordable Housing Manufactured Housing Today
ABoR Broker/Manager Forum
For more information, visit www.abor.com/broker.
ABoR Committee Sign-up Deadline
For more information, visit www.abor.com/commitees.
Understanding Septic Systems Regulations & Disclosures
New Member Orientation, ABoR Auditorium
July/August 2012
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8:45 a.m. – 12:00 p.m. |
Check schedule for times |
9:00 a.m. – 5:00 p.m. |
1:00 – 4:00 p.m. |
1:30 – 4:30 p.m. |
11:00 a.m. – 1:00 p.m. |
1:00 – 4:00 p.m. |
1:00 – 4:00 p.m. |
ABoR Offices Closed − Labor Day
9:00 a.m. – 5:00 p.m.
July/August 2012
TREC Legal Update MCE
Broker Responsibility MCE Course
ABR Elective: BPOs – The Agent’s Role in the Valuation Process
GRI1: Real Estate Finance
Seize the Power of Your MLS Subscription (South location)
Intro to Residential Service Contracts
TREPAC Investment
Intro to Home Mechanical Systems
TREPAC Investment
Certified Negotiation Expert Designation
For more information, visit www.thereni.com.
Green MLS: The Key to Unlocking the Green Home Market
8Touches – Your Image Matters
Texas Residential Eviction Steps
ABoR PAC Wine Tasting
For more information, visit www.abor.com/winetasting.
Lunch and Learn, ABoR Auditorium
MLS Advanced Features & CMA
CMA’s Adjustments and Theories
CMAs and Unique Properties
Broker Responsibility MCE Course
New Member Orientation, ABoR Auditorium
Texas REALTORS® Conference
For more information, visit www.texasrealtors.com/TopLevel/Events.cfm.
MLS Participations Fees Due
8Touches – Your Image Matters
MLS Advanced Features & CMA (South location)
Lunch and Learn, ABoR Auditorium
Seize the Power of Your MLS Subscription
Green MLS: The Key to Unlocking the Green Home Market
SEPTember
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TREC Ethics MCE
August
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1:00 – 4:30 p.m. |
8:30 a.m. – 3:30 p.m. |
8:30 a.m. – 5:30 p.m. |
8:30 a.m. – 5:30 p.m. |
1:30 – 4:30 p.m. |
9:00 – 10:00 a.m. |
10:15 – 11:15 a.m. |
9:00 a.m. – 4:00 p.m. |
1:00 – 4:00 p.m. |
9:00 a.m. – 12:00 p.m. |
1:00 – 4:00 p.m. |
5:30 – 7:00 p.m. |
11:00 a.m. – 1:00 p.m. |
1:00 – 4:00 p.m. |
8:30 – 11:30 a.m. |
12:30 – 3:30 p.m. |
8:30 a.m. – 3:30 p.m. |
8:30 a.m. – 12:00 p.m.
Austin REALTOR®
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government affairs
REALTOR® Party Endorsed Candidates
Win Seats at State and Local Level
The Austin Board of REALTORS® remains a staunch
proponent of the REALTOR® Party, an energized
movement of real estate professionals actively fighting
to keep the dream of homeownership alive in the United
States. In order to pursue this dream and protect our
industry’s interests, we strive to support REALTOR®
friendly candidates while keeping each of our over 8,200
members well-informed. Please visit www.abor.com/
elections for more details.
City of Austin Municipal Election Recap
The Austin Board of REALTORS® Government Affairs
Committee is very pleased to announce that all endorsed
incumbents were reelected in the City of Austin Municipal
Election on May 12. Mayor Lee Leffingwell, Mayor Pro
Tem Sheryl Cole, and Council Members Bill Spelman
and Mike Martinez successfully prevailed against strong
opponents.
moderated the event, using his knowledge, experience
and good-natured humor to direct attention to this serious
issue. LCRA Meteorologist Bob Rose delivered a powerful
presentation detailing the severity of the drought, clearly
communicating that recent rains may not necessarily
mean that Central Texas is, metaphorically speaking, out
of hot water.
The following panelists were included: State
Representative Paul Workman; Becky Motal, General
Manger at the Lower Colorado River Authority; Carlos
Rubinstein, Commissioner at the Texas Commission on
Environmental Quality; Dr. Robert Mace, Deputy Executive
Administrator for the Texas Water Development Board;
Laura Huffman, State Director for the Texas Nature
Conservancy; Charles Porter, 2010 ABoR Chairman,
St. Edward’s professor and water rights expert. These
distinguished panelists offered a variety of opinions on
how to best handle the drought. Throughout the program,
audience members were invited to send their questions
to the panel via text message for consideration. Of the
range of solutions discussed, water conservation and
conservation education were the most favored solutions.
State Primary Election Update
After a long period of relative confusion and disorder due
to the redistricting battle, the Texas State Primary Election
was held on May 29. Texas Association of REALTORS®
Opportunity Race Candidate Representative Paul
Workman claimed victory in his primary election against
fellow Republican Ryan Downton. On the national front,
United States Representative Lloyd Doggett claimed
success in the House District 35 race. The Austin Board
of REALTORS® considers both candidates to be strong
advocates for the REALTOR® Party and Texas. ABoR will
remain an active participant in both reelection campaigns
this fall.
As advocates for a vibrant, sustainable Central Texas
community, the Austin Board of REALTORS® will remain an
active stakeholder in identifying solutions to the drought.
For information pertaining to Water for Central Texas −
Solving the Problem, including pictures and video clips,
please visit www.abor.com/waterforum2012.
Panel Discusses Drought at
Water Forum
More than 3,000 investors have helped raise $234,190
for the Texas Real Estate Political Action Committee. This
is a phenomenal accomplishment! Thank you to everyone
who has invested. These generous donations support
the advocacy efforts of ABoR, the Texas Association
of REALTORS® (TAR) and the National Association of
REALTORS® (NAR). TREPAC’s goal is to protect and
preserve private property rights and the interest of
REALTORS®.
On April 24, the Austin Board of
REALTORS® hosted Water for Central
Texas − Solving the Problem at the
Texas Capitol Auditorium. A team
of panelists spent the morning
discussing solutions to the current
drought facing Central Texas.
State Senator Kirk Watson
10
Austin REALTOR®
TREPAC Fundraising at 86 Percent
To help ABoR reach its TREPAC fundraising goal of
$272,965 and help preserve a healthy real estate
environment, visit www.abor.com/trepac.
July/August 2012
TREPAC to Host Movie Night
ABoR PAC is rolling out the red carpet for TREPAC investors
at our second annual Movie Night on Thursday, July
19. Grab your sweetie for a swanky date night at the
iPic Theaters. Tickets cost $35 and $45 and include
appetizers, popcorn, two drink tickets and, of course, the
movie. Cocktail hour starts at 6:00 p.m. and seating is
limited. For ticket purchases and more information, visit
www.abor.com/movies.
July/August 2012
Pop a Cork to the End of
the TREPAC Fundraising Year
Come celebrate the end of the 2012 TREPAC fundraising
year on Thursday, August 23 from 5:30–7:00 p.m. at
Max’s Wine Dive—The Underground. Let out your inner
sommelier as we toast TREPAC’s fundraising success.
Purchase your tickets at www.abor.com/winetasting.
Cheers!
Austin REALTOR®
11
mls update
ABoR Passes Rules to Clarify IDX
The ABoR Board of Directors recently approved changes
to the policies involving Internet Data Exchange (IDX).
Wondering how this affects you? Here’s a rundown on what
these changes mean for your business.
If you operate an IDX display, take note that properties
aggregated via IDX must clearly identify the listing firm using
the label “Property listed by.” This label must be on a standalone line in the same size and color as the font used in the
display of listing content. As you already know, confidential
MLS fields such as days on market (ADOM and CDOM) may
not be displayed on IDX. IDX displays also may not calculate
or display a field that tracks time, such as days on website
or status dates. We appreciate your efforts to comply with
these new policies.
The recent rule revisions also served to clarify the IDX
selective opt-out policies. To decrease interferences to your
routine, we’ve outlined the MLS system modifications to the
IDX and Internet Display fields below.
You’ll notice these changes take effect in the coming weeks.
Visit www.abor.com/IDX to review all of the IDX rule changes.
If you have any additional questions, contact your MLS
Support Team at 512-454-7636 ext. 2001 or mlssupport@
abor.com.
Definition
What’s changed
Your options
IDX
Created by NAR, Internet Data
Exchange (IDX) is an agreement
between Brokers to share their
listings with each other for the
purpose of electronic display.
This field now defaults to “Yes” or
“No,” depending on whether your
Broker has opted-in to IDX. Agents
used to manually select “Yes” or
“No” from a dropdown menu.
IDX cannot be modified at the
agent level.
Internet
Display
Internet Display is a choice on the
MLS Listing Agreement Form in
which a Seller gives their listing
agent permission to advertise
their home online.
This field defaults to “Yes,”
however you must manually select
where you would like the listing
to be advertised online. Selecting
“No” will remove the listing from
both Internet Display and IDX.
Not all Sellers are comfortable
advertising their property on the
Internet. Accordingly, agents have
the ability to opt-out of Internet
Display, but should do so only at
the direction of the Seller. Optingout of Internet Display ensures
that the listing will not be displayed
anywhere on the Internet, including
AustinHomeSearch.com, Realtor.
com and IDX displays.
Listing Will
Appear On
This is a new data field that allows
agents to indicate which websites
the listing should be sent to. At
least one option must be selected
if Internet Display equals “Yes.”
Your listing will not automatically
be sent anywhere on the Internet.
Manually select where you’d like
the listing to be advertised online:
AustinHomeSearch.com, Realtor.
com, Texasrealestate.com,
Syndication, etc. Syndication
means that your listings will be
available for ACTRIS’s approved
syndication partner. Currently,
ACTRIS has an agreement with
ListHub.
To maximize the listing’s visibility
on the Internet, you can choose all
the available options.
12
Austin REALTOR®
July/August 2012
Realist 2: Property-Centric Data and
Cutting Edge Technology
Have you tried Realist 2, yet? If not, you’re missing out
on a wealth of property-centric data and new technology
designed to take your business to the next level. Weekly
training is offered every Wednesday. Visit www.abor.com/
mls/Realist2.cfm to learn more about this innovative new
product and register for complimentary training.
New Property Data for Listing Entry
With help from two task forces, member input and the
ACTRIS Advisory Committee, the residential and lease
property profile sheets are being updated to better meet
your needs. Property profile sheets serve as the “bones” of
the MLS system, outlining each data field and pick-list menu
that you use to list and search for homes. Keeping these
documents up-to-date helps ensure that the MLS database
remains an accurate, efficient tool for your business.
To streamline listing input, the task force redlined any
outdated, unused fields and eliminated redundancy when
possible. To avoid any disruptions to your business, we
carefully examined usage of the fields before making
changes. The task force also recommended the addition of
various new data fields and pick-list values that we hope
will encourage more detailed property listings. New pick-list
values give you added resources to describe garage and
parking details, appliances, interior features, area amenities
and energy-efficient features. Plus, we’ve added over 10
new data fields so you can effectively market a property’s
guest accommodations, disability features and outdoor
living features. To establish more consistency between the
residential and lease property databases, these revisions will
be implemented in both property types.
July/August 2012
Leasing and property management professionals should
take note of some additional changes specifically designed
for their market. Three new mandatory fields are intended
to make the application process more efficient by allowing
agents to communicate important details about application
policies and requirements directly in the listing. Agents must
indicate what type of applications are accepted, and clarify
whether their office will select the first qualified application
or the “best” application. This information may help agents
manage a client’s expectations in our hot leasing market.
A big thank you is owed to our task force participants, who
volunteered their time to review the profile sheets line-by-line
and help make these documents a more valuable resource
for Central Texas REALTORS®. Your hard work and dedication
is much appreciated!
Submit Your Application to ACTRIS
ABoR is accepting applications for two available seats on
the ACTRIS Advisory Committee. The position carries a threeyear term, beginning January 2013. Visit www.abor.com/
committees to review eligibility requirements and submit
your application by August 1.
Keep Your Cool (And Your ActiveKEY’s)
As the temperature rises and the real estate market heats
up, keeping your business tools in top form is a
priority for every REALTOR®. Exposure to extreme
temperatures can shorten your
ActiveKEY’s battery life or cause the
key to malfunction, so don’t leave
the device in your vehicle to roast
in the Texas heat. If your ActiveKEY
displays the message “Maxtemp
Exceeded Safe Mode On,” the
device has reached a temperature
over 131 degrees and cannot be
used until it cools down. Avoid a
potentially embarrassing mishap
by storing your device at room
temperature whenever possible and
avoiding prolonged exposure to the
sun. Additional ActiveKEY troubleshooting
tips are available at www.abor.com/mls/tshoot.cfm.
Austin REALTOR®
13
The Rules Have Changed
Understanding the Texas Real Estate Commission’s
New Licensing Requirements
by Autumn Rhea Carpenter
Law of Agency (30 classroom hours);
Law of Contracts (30 classroom hours);
Promulgated Contracts (30 classroom
hours); and Real Estate Finance (30
classroom hours). Related course
credit may no longer be used to meet
education requirements for this license.
Related education requirements will no
longer be required but the education
requirements for the first renewal of
a salesperson license will increase
from 60 to 90 core hours. (Effective
September 1, 2012)
For each renewal following, the
salesperson will be subject to
mandatory continuing education (MCE)
requirements in order to renew a
license.
As part of the real estate industry’s
evolution process, the Texas
Real Estate Commission (TREC)
Housekeeping Bill, Senate Bill 747,
has amended the Real Estate License
Act to provide additional education,
experience and accountability
standards for TREC licensees. These
new requirements are meant to
provide consumers with more skilled
professionals who have a deeper
understanding of the industry and an
ability to provide the most educated,
accurate advice to consumers.
an issue amongst the industry and its
consumers, and it was obvious that it
was time for a change.”
“In 1939, my father became a
broker with two dollars and two
references,” said Avis Wukasch, the
TREC Commission Chairperson. She
continued, “Until recently, a licensee
could become a broker without having
represented a buyer, seller, tenant or
landlord. He would simply need to keep
his license active for two years and
pass the required test. This became
Education Improvement
14
Austin REALTOR®
The TREC Housekeeping Bill, which
can be downloaded at http://bit.ly/
LNT1UL, includes several measures
related to education improvement,
broker accountability, experience
requirements and housekeeping
matters. The bill was effective on
September 1, 2011, but various
provisions have different effective
dates.
Pre-license education requirements for
a salesperson license will change from
210 to 180 total core hours. (Effective
September 1, 2012)
Core hours must consist of Principals
of Real Estate (60 classroom hours);
Brokers who sponsor salespersons
and any licensees, either brokers or
salespersons, who are authorized by
brokers to supervise other licensees
will be required to take a six-hour
Mandatory Broker Responsibility
course to renew a license. (Effective
September 1, 2012)
This requirement applies to active
licenses that expire after August 31,
2012. Licensees who complete their
education requirements before July 1,
2012, will not be required to complete
this course until their next renewal
cycle.
During the June 6 Broker/Manager
Forum held at the Austin Board
of REALTORS® (ABoR) offices,
Wukasch discussed the MCE Broker
Responsibility Edition 1.0, which can be
downloaded by visiting http://bit.ly/
Lh4nSy. This curriculum was developed
July/August 2012
in cooperation with TREC, the Real
Estate Center at Texas A&M University
and a content writing group. “We hope
REALTORS® will approach this course
and the curriculum with an open
mind, and know that TREC welcomes
your ideas on how we can make
improvements.” Wukasch continued,
“Every chapter includes case studies
with examples of real violations, the
laws that were broken and explanations
of why the agent’s license was revoked
or suspended.”
Other topics highlighted in the course
are definitions, scope of authority
of a broker, agency, organizational
structures, policies, records, retention
and control, federal laws and the
anatomy of a complaint.
“I’m happy that TREC is instituting
the upcoming six-hour mandatory
broker responsibility course,” said
Christine Choate of Horizon Realty.
She continued, “I feel that type of
class is desperately needed for brokers
who are responsible for the actions of
agents.”
In an effort to continue improving
education standards, TREC will appoint
a 12-member Education Curriculum
Standard Advisory Committee to review
and revise curriculum standards,
course content requirements and
instructor certification requirements for
core and MCE courses. The committee
will include six members engaged
in real estate practices for at least
five years; three members who are
also real estate instructors or owners
of real estate schools accredited by
the commission that provide core or
continuous education; and three nonlicensed members who will represent
the public.
“Our industry is undergoing significant
changes, and much of this is a result
of public outcry,” said Wukash. “This
kind of structure is desperately needed
as our industry demands the most
competent instructors teaching the
most accurate, applicable content.”
July/August 2012
Experience Requirements
for a Broker License
Written Policies and
Procedures
An applicant for a broker license will
need to have at least four years of
active experience as a license holder
during the preceding five-year period
before the date the application is filed.
(Effective January 1, 2012)
Additionally, amongst the detailed
list of requirements are mandated
written policies. Suggested policies
include: agency relationships; do-notcall compliance; federal spam law
compliance; background checks on
non-licensed assistants; Internet
usage; dress code; online community
usage; privacy policy; disaster plan;
property management; paperwork
checklists and broker responsibility
class. Additional suggestions from
participants at the Broker Forum
include: agent safety; open house
policies; Fair Housing; sexual
harassment; intellectual property and
inter-office agent dispute resolutions.
Part of the new requirements state that
an applicant must show no less than
3,600 points of qualifying practical
experience. After an application is
filed, points may be submitted on the
Supplement A-Qualifying Experience
Report for a Broker License form,
downloadable at http://bit.ly/
M6WbSR.
Practical experience includes closed
purchases or sales, executed leases,
property management, exclusive
listings and buyer representation
agreements. In addition to practical
experience, brokers must reach 270
classroom hours of core real estate
courses and a 30-hour real estate
brokerage course must also be
completed as part of this requirement.
“We currently have 101 agents and
nine of them have their broker’s license
and several others are on their way to
obtaining one,” said Choate. “We love
that they’re expanding their knowledge
and reaching their goals. The new rules
have definitely had a positive effect on
the agents and their business.”
Choate continued, “Overall, the new
TREC rules have coincided with many
of our existing company rules and
have strengthened the company and
the agent’s businesses. For example,
we have streamlined our transaction
management system for our agents.”
She said, “We not only collect all
the required documents on every
transaction in a timely manner, but we
also keep all of the agent’s documents
in the cloud so that they can log-in with
their username and ID to look at their
active transactions, plus any documents
from their past transactions.”
“We have developed a new policy and
procedures manual and held one-onone meetings with each of our 101
agents so that they understand the
existing and new rules,” Choate said.
She continued, “Having a dialogue with
the agents on best practices has given
us the opportunity to be more engaged
with the agents and created a more
successful environment.”
The purpose of the new TREC
requirements was to strengthen the
industry while making REALTORS® more
accountable. “The new TREC rules
have not only increased compliance,
but have had an overall positive effect
on our agents in terms of productivity,
education, risk management and
camaraderie,” said Choate.
As the Broker/Manager Forum closed,
buzzing with roundtable discussions,
Wukasch said, “Our hope at TREC is
that these rules will not only protect
the consumer, but also improve their
confidence in our industry.”
To see what else TREC Commission
Chairperson Avis Wukasch said at the
June Broker/Manager Forum, visit
www.abor.com/broker.
Austin REALTOR®
15
ABoR Hosts
Mercedes
Raffle for ABoR
Foundation
Scholarship
Program
Above: Laurie Nunnallee of Capital
Title of Texas, ABoR Foundation
Director Cathy Coneway, and Alisa
LeBlanc of Patten Law Firm draw the
lucky, prize-winning tickets.
Below: ABoR Foundation members and
recipients of ABoR scholarships pose
with a check for the grand sum of their
awards.
Increasingly, tuition costs seem to be
skyrocketing faster than mercury in a
July Texas thermometer. To help quell
the heat of dedicated students’ credit
cards, the Austin Board of REALTORS®
Foundation awards scholarships
annually to deserving students seeking
higher education in Travis, Williamson,
Lee, Bastrop, Caldwell, Hays, Blanco or
Burnet counties. Since the Foundation
was created in 1978, hundreds
of students have been awarded
scholarships based on their exceptional
academic and civil commitment.
Last year, a new tradition was begun
that has propelled the Foundation in its
continued support of higher education,
while thrilling donators with the luck
of the draw. The ABoR Foundation
hosted the Mercedes and Martini’s
Raffle event on June 7 at the Shoal
Crossing Event Center, where a lucky
Terri Romere of Keller Williams Realty
won a brand new Mercedes-Benz. The
prize includes a trip to Germany and
the Mercedes-Benz factory, where she
will hand-pick her Mercedes C-250 or
GLK350.
ABoR friends and affiliates certainly
stepped up to the plate in order to
make this a successful event. Altruism
even got creative with Realty Line
offering readers a chance at an entry
into the raffle for playing Where’s
Doren Now?, a play on Where’s Waldo?
While there was only one winner, each
$100 donation from raffle participants
means that the Foundation will
continue to award and recognize
dedicated high school students in
Central Texas. The event provided
many thrills for the Foundation and its
raffle participants, but that pales in
comparison to the joy the Foundation
gets from being able to give back to the
community with these scholarships.
In May, 15 recipients were selected
from over 120 applicants to receive
$31,000 in total scholarship funds.
The ABoR Foundation is excited to
award the returning $3,000 Treaty
Oak American Business Women’s
Association Scholarship to Thomas “TJ”
Goins of Lake Travis High School. Two
16
Austin REALTOR®
July/August 2012
ABoR and TAR Leaders Meet for Region 15 Meeting
Leaders and key representatives of the Texas Association
of REALTORS® and Austin Board of REALTORS­® came
together on May 30 for the annual Region 15 meeting.
Discussing the governmental issues affecting Texas and
the Central Texas region were TAR Chairman of the Board
Joe Stewart, TAR President and CEO Travis Kessler and
Second Vice Chair for TAR, Christine Seidel.
Among discussions of private property rights and issues
impacting homeowners, TAR revealed a more extensive
plan to offer pre-licensing courses. The TAR courses would
change REALTOR® education by utilizing real estate agents
as teachers. Seasoned real estate professionals will soon
be providing quality education as professors to those
entering the field at 12 locations across the state.
During the meeting, ABoR and its members were
applauded for their outstanding fundraising efforts
undertaken to support the Texas Real Estate Political
Action Committee (TREPAC). TREPAC is inches away from
meeting its TAR-set
goal of $287,070 by
September 30 with
$234,190 already
raised thanks entirely
to ABoR members. This
is an amazing feat for
an organization this
size.
TAR’s pre-licensing course announcement segued into
another related issue: membership attrition. TAR has found
approximately 25 percent of their members leave each
year. While the loss is regained with new membership, TAR
investigated the matter further. Detailed analysis identified
three main risk factors for leaving TAR. Those three factors
are being a new member, no designations and being a
member under 30. If you’re new to ABoR or the real estate
industry, find out all the ways you can get involved at www.
abor.com/committees and ensure you get all you can out
of membership with this fantastic organization.
$1,000 Second Year ABoR Foundation
Alumni Scholarships were awarded to
Angela Bumstead of the University
of Texas and Annaliese Reedholm
of Texas Christian University. A single
$4,000 ABoR Foundation Scholarship
was awarded to Anthony Guzman of
Hendrickson High School. The following
high school seniors were selected to
receive $2,000 scholarships for the
2012−2013 school year: The Austin
Real Pros Scholarships to Andrea
Barrick of Rouse High School and
Marshal Hanzel of San Marcos
High School; The John Siemering
Scholarship to Trenton Faykus of
Thrall High School; The Scott Stevens
Scholarship to Brandon Masi of
Hendrickson High School; The John &
Susan Horton Scholarship to Whitney
Orji of Pflugerville High School; The
Patten Law Firm Scholarship to Cesar
Udave of Bastrop High School; The
Carol Dochen Scholarship to Sabrina
July/August 2012
Wilkerson-Burkett of Burnet High
School; The Bill Stanberry Scholarship
to Devyne Byrd of Reagan High School;
The Anderson Family Scholarship to
Rachel Krenek of Dripping Springs
High School; The Malcolm Brian Hardee
Memorial Scholarship to Morgan Lyons
of Burnet High School; and The Central
Texas Commercial Association of
REALTORS® (CTCAR) Scholarship to Will
Herron of Herron Home School.
Thanks to the generosity of our raffle
participants and donors, starting in
February 2013, students seeking
higher education can again apply for
the ABoR Foundation’s scholarships.
To learn more about the Foundation
and how you can make a contribution,
visit www.abor.com/foundation. For
more information about the Mercedes
& Martini’s Raffle, visit www.abor.
com/foundation/benz.
Above: ABoR’s Director of Marketing
and Comminications Angela Brutsché,
Secretary/Treasurer of the Board of
Directors and TREPAC Chair Bill Evans,
ABoR Director Susie Kang, Kelea Piper
of Champions School of Real Estate,
ABoR President & CEO Matt Maire
and ABoR Director David Burton take
a break from the black jack and slots
to smile for the camera at the June 7
Mercedes & Martini’s Raffle event.
Austin REALTOR®
17
member spotlight
This segment of our magazine focuses on recent accolades bestowed upon members of the Association. Please join us in
congratulating them on their accomplishments. If you would like to submit details on a recent recognition you’ve received,
send us an email at [email protected], and the spotlight may turn on you in a future publication.
TWO ABOR MEMBERS GAIN
PROMOTIONS WITHIN COLDWELL
BANKER UNITED, REALTORS®
Congratulations are in order for ABoR
Director Helen Edwards and ACTRIS
Advisory Committee member Valerie Lyday.
Edwards most recently served as chief
operating officer of Coldwell Banker United,
REALTORS®’ Austin Region and will now
serve the same role for the entire company.
Before serving the entire Coldwell Banker
United, REALTORS® area that includes
Texas, Florida, Alabama, North Carolina
and South Carolina, Edwards led operations for the company
in 10 Austin-area offices. “Helen’s exceptional leadership and
operational skills are vital to the company as we continue
to expand our presence and offer more services to our
agents to serve our clients even better,” said Richard Smith,
Coldwell Banker United, REALTORS® CEO.
Lyday is receiving a promotion from her position as vice
president of the Austin region’s Westlake office to serve
in Edward’s place as chief operating officer for the Austin
region. She has been with Coldwell Banker since 1982 and
has over 40 years of residential real estate experience to
bring to her new position.
NAR CONVENTION SEMINAR
LEAD BY ABOR MEMBER
ABoR’s own Krisstina Wise of The
GoodLife Team recently strut her techie
stuff when she spoke at NAR’s Midyear
Meetings. Her seminar titled A Day in
the Life of a Mobile Agent shared mobile
applications that streamline listing presentation, reduce
paper use and provide easy access to forms, notes, images
and information. This forum helped professionals gain
awareness of technology and information systems that make
being a REALTOR® that much better.
Wise was also recently named 2012’s Fittest Executive
Award. The award is given by the Fit Company. Wise and her
fellow winning professionals will be featured in an upcoming
issue of Austin Fit Magazine.
18
Austin REALTOR®
LOEW OF GIVE REALTY SHOWS
PASSION FOR GIVING BACK
Give Realty was recently honored as
the 2012 Outstanding Philanthropic
Corporation by the Austin Chapter
of the Association of Fundraising
Professionals. Give Realty founder and
ABoR member, Laurie Loew, was featured in the AustinIsIt
newsletter providing “7 Ways to Give Back and Get Involved
in Our Community.” Her article focuses on innovation
and dedication in giving. Find the article and ideas for
volunteering at http://e2.ma/message/qtdz/i3j0w.
REALTORS® TAKE A DAY
TO LEND A HAND
In a recent segment,
KVUE News highlighted
Elizabeth Riley, along with
other REALTORS® of the
Keller Williams Realty team who spent May 10 renovating
local North Austin organization Sammy’s House. Sammy’s
House is a non-profit organization focused on providing
various support services for special needs children. Riley
nominated Sammy’s House for Keller Williams’ annual RED
Day which offers REALTORS® a chance to give back to the
community by volunteering at a non-profit organization.
MOM AND DAUGHTER DUO
FEATURED IN AUSTIN WOMAN
MAGAZINE
It’s a family affair for mother
and daughter REALTOR® team
Charlotte and Weston Lipscomb.
The two were featured in Austin
Woman Magazine alongside other Austin family business
duos. Mother, Charlotte, is a seasoned luxury real estate
REALTOR® who has been a member of the Austin Elite 25
since its inception in 1994 and daughter, Weston, is quickly
proving her own merit in the luxury real estate market. The
two now work together with Austin Portfolio Real Estate
and Keller Williams Realty. Read their entire story at www.
austinwomanmagazine.com/all-in-the-family.
July/August 2012
ABOR GRADUATES
22 STUDENTS
FROM TEXAS
REALTORS®
LEADERSHIP
PROGRAM
Although not donning caps and gowns, 22 ABoR members
and staff proudly graduated from the Texas REALTORS®
Leadership Program. The eight-week program ended May 10
and consisted of lessons ranging from spokesperson training
to trade associations and politics. This rigorous course was
preceded by a meticulous selection process. Applicants were
chosen based on their experience and involvement in the
industry.
Congratulations to John Baughman of John Horton Realty/
PLR; Michael Ebert of Austin Landmark Property Services;
Richard Elias of Gateway Realty, Inc.; Keith Falcone of RE/
MAX Lake Travis; ABoR Director of Member Services Beth
Gatlin; Chad Goldwasser of Goldwasser Real Estate; Julie
Hatfield of Texas Gas Service; Becky Hopkins of Austin
Title Company; Texas Association of REALTORS® Manager
of Professional Development Jon Houser; Cheryl Jenkins of
RE/MAX Capital City III; Alisa LeBlanc of Patten Law Firm;
Anna Lee of Tate Property/PLR; Hong Lee of Bridgepoint
Investment Group; Oliva Lerma of Alterra Mortgage; Meghan
Matta of The Groove Realty; Dolise McClure of Realty WorldNeal Barnes; John Schutze of Supreme Lending; Brian
Talley of Regent Property Group, LLC; Seth Thompson of
Zip Realty; Sandy Urias of Farmers Insurance Group; Memo
Vargas of The Vargas Team at Keller Williams; and J. Rene
Ward of Best Agents in Texas.
If you’re interested in receiving the Texas REALTORS®
Leadership Program Certification, look for the 2013
application in October on www.abor.com/leadership. For
more details, contact ABoR’s Education Department at
[email protected] or 512-454-7636, ext. 2005.
REAL ESTATE FIRM HELPS FIREFIGHTERS
BUY AND SELL HOMES
A recent Austin American-Statesman
article reported on a passion for giving
that ABoR members David Schneider and
Sue Shearer of Goldwasser Real Estate share
with their company. Goldwasser Real Estate
has teamed up with the State Firemen’s & Fire Marshals’
Association of Texas to help firefighters with home buying
and selling. The real estate firm’s agents donate 20 percent
of their commission for every firefighter who buys or sells a
home through their firm. 15 percent goes to that individual
firefighter and five percent goes to the Texas Wildfire Relief
Fund.
GOVERNOR APPOINTS ABOR MEMBER
TO ADVISORY PANEL
Real estate agent with Century 21 HSK and ABoR member
Rachel R. Logue was recently appointed by Governor Rick
Perry to the Parental Rights Advisory Panel. The panel will
study and provide recommendations to the Legislature
regarding a parent’s access to or possession of a child,
pursuant to House Bill 2367 of the 82nd Legislative Session.
ABOR MEMBER EXHIBITS
ART WORK
An exhibition of the latest works
of ABoR member Chris De Dier
was recently held at the Davis
Gallery. The collection includes
landscape paintings, abstracts
and sculptures. The Belgium born
REALTOR® currently works for
ZipRealty and founded Arris Studios in Austin. You can see
some of his works at www.chrisdedier.com.
The Austin Board of REALTORS®
thanks
Security National
Mortgage Company
for supporting the June New
Member Orientations
July/August 2012
Austin REALTOR®
19
More Trees Equal More Green for Homeowners
You might guess that
homebuyers prefer
properties with trees,
but did you know that
homebuyers are typically
willing to pay more for
a property with trees?
According to Dr. Kathleen
Wolf, a research social
scientist at the University of
Washington, “homes with
trees are generally preferred to comparable homes without
trees, with the trend across studies being a price increase
of about seven percent.”
This was just one of many interesting facts April Rose,
Executive Director of TreeFolks, shared with REALTORS® in
a special presentation with Damon Waitt, Senior Director
at the Lady Bird Johnson Wildflower Center, on April 19.
Rose and Waitt visited ABoR to speak about urban forestry
(i.e., the care and management of trees that grow within a
city, town or suburb), tree benefits and tree identification.
So what did this have to do with real estate? Lots. Trees
not only boost a property’s curb appeal, but can increase
a property’s value by providing a myriad of “ecosystem
services,” such as filtering pollutants, sequestering
carbon, absorbing storm water run-off and reducing energy
costs. According to Rose, strategically placing trees near a
home can cool the home by 20 percent and reduce utility
bills by up to 25 percent.
A program called the Great Texas Tree Roundup (GTTR)
allows individuals to identify and map trees, as well as
determine the economic value of their ecosystem services.
GTTR was developed by the Lady Bird Johnson Wildflower
Center and TreeFolks to engage the public through an
interactive, web-based mapping of trees. Having the public
involved in “citizen science,” or collecting data from which
others may draw scientific conclusions, is an important
effort that aids urban forest management, education,
research and planning.
Aside from contributing to the over-arching benefits of
citizen science, mapping trees allows individuals to better
understand the cost savings associated with having
specific trees on their property. From the REALTOR®
perspective, using the GTTR tool could be a great reason
to stay in touch with clients. For instance, a REALTOR®
could map all trees on a client’s property and then inform
the client of the cost savings each tree brings to the
property on an annual basis.
Mapping trees with the GTTR tool is fun, relatively easy
and—best of all—you can join forces with a “posse” of other
Austin real estate professionals. To begin mapping trees,
simply visit www.treeroundup.org to create your account
(and be sure to join the Austin Board of REALTORS® posse
while you’re at it!). By clicking the “Participate” link at
the top of the website, you’ll have access to a variety of
resources that will help familiarize you with the program
and aid your tree mapping efforts. Additionally, GTTR
workshops are held throughout Austin for those seeking
hands-on training; learn more and register at www.
treefolks.org/roundup.
For more information regarding tree care, selection
and identification, visit www.treefolks.org and www.
wildflower.org. Happy mapping!
Kate Voth is the Senior Social Media
Communications Coordinator at ABoR. She
regularly scans the Web for ways to communicate
with and offer support to Central Texas
REALTORS®, promote homeowner­ship and the
REALTOR® profession and build a loyal and
enthusiastic community around ABoR brands via
social media.
Above: April Rose and Damon Waitt give insight into
the fauna surrounding the ABoR Office.
Left: ABoR members learn the basics and try their
hand at tree identification.
20
Austin REALTOR®
July/August 2012
Three River Place Homes Burglarized at Open Houses on Sunday [May 6, 2012]
Suspect Tied to $20,000 Stolen Necklace
The suspect Hector Guzman, 38, was
caught on Sunday just after 2 p.m.
because a REALTOR® recognized him
from another open house she hosted
in Westminster Glen last fall where a
necklace worth more than $20,000
was missing.
“(Guzman) has two charges of Theft,
State Jail Felony, that have been filed
so far and detectives are investigating
to determine if other charges are
warranted,” said Roger Wade, Public
Information Officer Travis County
Sheriff’s Office.
Sources say nine people at this point
are pressing charges against Guzman
and investigators are trying to see if he
is related to a case in Westlake where
property, mostly jewelry, worth more
than $100,000 was stolen. He also
has a conviction for robbery in another
state.
On Sunday afternoon, Amy Brossette,
a Keller Williams REALTOR®, was just
opening the doors to an open house
on China Garden when she recognized
Guzman from a different open house
in Westminster Glen where a $24,000
necklace was stolen in October.
Guzman was the first one to arrive on
Sunday and fortunately Brossette’s
husband, David, had stopped by at that
time too.
“I recognized (Guzman) and turned
to my husband and mouthed ‘call
9-1-1’ and then I followed him,” Amy
Brossette said.
She followed Guzman upstairs. He only
had 10 to 20 seconds in the master
bedroom before Brossette came in, but
he went right into the master closet
and took two necklaces in that time, as
later confirmed.
July/August 2012
Guzman kept looking out the windows
while touring the house. Brossette was
worried that the police would pull up
and he would have her trapped in the
house.
“I came into the house half way
through my 911 conversation to make
sure she was OK. Then I went back
outside to continue to give police info
on the suspect,” David Brossette said.
Guzman left the house and minutes
later Travis County Sheriff’s pulled
him over on River Place Boulevard. A
search was done and they found more
personal property tied to two other
open houses on James Ryan Way in
River Place held earlier on Sunday.
Gary Nunes’ River Place home was one
of those.
“Our next door neighbor was having an
open house at the same time. This guy
took stuff from both homes and both
REALTORS® thought the guy was acting
strange and they both wrote down his
license plate and took a picture of his
car,” Nunes said.
“I was very surprised. This person goes
after anything they can put inside his
pockets. What was taken from our
master bedroom area was an iPod and
some collectible Disney coins,” Nunes
said.
More jewelry was also taken by
Guzman on Sunday and was retrieved
the next day.
“In these cases, the suspect took items
that were quickly and easily accessible.
People should be aware that if you
are going to have an open house, you
should secure your valuables,” TCSO
Wade said.
“People have to hide their jewelry,
put all small valuables away and
prescription drugs, too,” Amy Brossette
said. She was “scared me to death”
after she found out what Guzman did
last fall during one of her open houses.
Since then she started putting up a sign
at the front door asking people to show
a photo ID before entering an open
house. In the case on Sunday, she was
just getting out her sign when Guzman
showed up and didn’t ask for his ID.
Brossette’s husband thinks she is a
hero.
“She stayed cool, and probably
unwisely, followed the guy around
so that he had little or no chance to
take property from her client. This guy
would still be out there if she did not
recognize him and react so fast,” David
Brossette said.
“Great job by the Sheriff’s
department,” Nunes said. Although
Nunes said they won’t be having any
more open houses, he wants to get the
word out to neighbors and real estate
agents so this type of thing does not
happen again.
This article has been reprinted with the
express permission of Four Points News.
To subscribe to their weekly newspaper,
visit www.FourPointsNews.com/
subscribe.
Check out ABoR’s Safety Alerts
Community within the ABoR Learning
Communities at www.abor.com/alc.
There you can report suspicious activity
and exchange safety tips with other
REALTORS®.
Austin REALTOR®
21
Top 10 Evernote Tips
For Buyer’s Agents
For those of you who carry a notebook
and pen everywhere you go, Evernote
will change your life. It’s one of the five
core tools that that will change the way
you operate your business and that
will help lead you to success. At The
GoodLife Team, every employee uses
Evernote across a number of different
devices. It’s been about six months
since all of our agents started using
Evernote and it has already become an
invaluable and fundamental tool.
What is Evernote? It’s a digital notetaking tool and a place to store all of
your data. This data can be anything—
photos, checklists, notes, websites
and blogs—and the best part is that
Evernote will sync all of your information
to multiple devices. Evernote is a game
changer, and a tool every successful
mobile agent must be using.
Using Evernote with your Buyers
1.Keep notes about every
conversation in specific client
notebooks
Group notes by buyer name
in a buyer notebook and keep
qualification notes, consultation
notes, property tour notes,
negotiation notes and transaction
notes, as well as all associated
documents, in one place.
2. Create a customized property tour
Provide a five-star experience using
Evernote. Customize the property
tour, including the MLS sheet of
all homes customers will preview.
Include hyperlinks to the map and
a calendar entry for the associated
showing times right inside one single
note for handy access on the go.
22
Austin REALTOR®
3.Show homes and easily capture
client feedback
Use Evernote on your iPad to take
text notes and use the audio feature
to record what the buyer liked or
didn’t like about each home you
visit. Use the iPad to take a photo
and include it in a note for each
home that is shown. At the end of
the day, browse through notes with
your buyer so he or she remembers
which home they want to write a
contract on.
Tip: Take a photo of the client at the curb of
the house or homes that they really like.
Tip: Offer to let your buyer take their own
notes.
4.Email notes, photos and audio after
the property tour to the buyer
Remind your buyer of which homes
they liked and why by sharing this
information with them via email,
straight from your Evernote account.
Giving the buyer access to this
information will help them narrow
down the search and remind them of
things they may not have otherwise
remembered from the visit.
5.Forward all client-related emails
directly to your Evernote account
Capture and forward all email
communication you have with
a buyer to your Evernote Buyer
Notebook. You’ll have a complete
repository of all communications
with your buyer over the course of
the buying lifecycle in one, easily
searchable place.
Tip: Put the notebook name where you
want to organize all client communications
in the email subject line, using the @
sign to direct the email to the appropriate
notebook. Ex – “@June Doc”
Using Evernote Beyond the Buyer
1.Document all training notes, MCE,
certifications and conference notes
Create a training/education
notebook to keep all notes from
conferences or important legal
changes that happen on a regular
basis. With Evernote, finding the
information is as easy as typing a
keyword into the search bar.
Tip: Take photos of business cards of
people you meet at conferences and store
them in Evernote for easy search.
2.Create all operations/organization
checklists
Use Evernote to create task lists to
be more efficient. You can create
templates for standard practices
such as marketing, client events,
transaction management, etc.
3.Keep track of all leads or potential
new business
Create a “Leads” notebook and use
it to take notes on each potential
new buyer. This allows you to
incubate leads over longer periods
of time using the calendar, notes
and checklists.
4.Keep client notes at your fingertips
The beauty of using Evernote is
that it is available on your desktop,
your smart phone and your iPad/
tablet. All notes automatically sync
so information is accessible and
available at all times, whether you’re
at the office, at home or in the field.
5.Manage all transactions, from
beginning to end, in one place
The complexity of making sure all
i’s are dotted and t’s are crossed
July/August 2012
new designated REALTORS®
Wang Chen
JAC Financial Services, LLC
Kristi Sutterfield
Watson & Associates, Inc.
John Connelly
John Connelly Properties
Doreen Tando
Austin 101 Realty, LLC
James Crouch III
Jim Crouch Company
David Thibodeaux
CBRE
Neelam Gajjar
Om Homes Realty, LLC
Charles Toubin
C. Toubin Company, Inc.
Rene Gonzalez
Austintatious Properties, LLC
Robert Zoch
Zoch Realty
Janet Grandinetti
PG Properties
Mike Green
Propertymaxx
Kimberly Habermehl Town & Country Real Estate
Shannon Scott Hearne
Scott Hearne, Broker
Stewart Hines
Hines, REALTORS®
John Kash
Kash Realty
Tracy Knapp
T. Knapp Realty
Clifton Lind
Clifton E. Lind
Pamela Madere
Pamela Madere
Rick Mayfield
Mayfield-DeWolf & Associates
Christel Montez
Hill Country Property Management
Rosa Orozco
Austin Hills and Views Realty
Taylor Perkins
AustInvestments
Paul Pietrzyk
Texas Keys Real Estate Group
Cecilia Pimentel
La Casa Realty Group
Patricia Rayburn
Valtera Realty
Patrick Renfrew
Renfrew Real Estate
Russell Richey
Home Hunters of Austin
Jonathan Rocha
Utopia Real Estate Group, LLC
Patrick Rose
Patrick Rose Real Estate
Carol Rouse
Capital Real Estate
Henry F. Sheppard
Indianola Investments, LLC
Ritesh Sheth
Club Central Management, LLC
classifieds
LOOKING TO BUY OR SELL SOMETHING?
Classified ads are free for members to advertise their used office
equipment, furniture or computers. Submit your ad (maximum
of 30 words, including contact information) to marketing@abor.
com or fax to 512-454-5369, attn. Marketing by the 10th of
the month prior to the publication date for the next issue. In
between publications, you can submit your information in the
ABoR Learning Communities by visiting www.abor.com/
alc. The classifieds section is listed on the right side of
the homepage.
condolences
Our deepest condolences go out to the family and friends of
REALTOR® Lominta Loving Loftis. Lominta passed in late April.
once you have written an offer on a home can be difficult
to manage. Use Evernote for everything from creating the
contract to staying on top of your closing checklist.
Tip: Create a template checklist and use it for every customer. Include
detailed notes on negotiation, inspections and repair amendments, so
you never miss a beat.
Krisstina Wise is founder and CEO of The GoodLife
Team, an Austin boutique real estate firm that has
received the Inman Innovator of the Year Award and
been recognized by Apple Inc. as power users of the
iPad. A national speaker and trainer, Krisstina is also
the Real Estate Ambassador for Evernote.
July/August 2012
Austin REALTOR®
23
ABoR Unveils Strategic Plan
The Austin Board of REALTORS®­recently unveiled a strategic
plan led by a vision to achieve member satisfaction and
promote the value of membership. Strategic direction was
established by ABoR leadership, member thought-leaders
and staff. A group comprised of more than 35 individuals
dedicated to advancing ABoR’s mission came together in
February and April to identify priorities and initiatives for our
organization.
“We’re inspired by our volunteers’ vision and the plan that
has been created to help guide ABoR,” said Matt Maire,
President and CEO of ABoR. “The objectives outlined in the
strategic plan are based on seven pillars that volunteer
leaders have identified as fundamental for ABoR’s success,”
he continued.
Strategic pillars recognized by ABoR include:
• Member Satisfaction;
• Trusted Property Information;
• Ethics and Professional Standards;
• Professional Development and Education;
• Positive Consumer Image;
• Promote Public Policy; and
• Broker and Manager Support.
The specific
strategies which
will be employed
in 2012–2013 are:
• implementing a new MLS and GoMembers customer
database;
• establishing a decision on a new permanent facility;
• enhancing education and professional development
opportunities;
• advancing our role in political advocacy;
• maximizing ABoR’s community presence; and
• reinforcing the REALTOR® Code of Ethics and professional
standards.
The plan’s desired outcomes include items recognized by the
Strategic Planning Committee as well as those documented
by ABoR Ambassadors late last year. For a complete version
of ABoR’s 2012–2013 Strategic Plan, visit www.abor.com/
about_abor/ABoRStrategicPlan.pdf.
We wish to thank the following members for participating in the strategic planning
process: John Baughman of John Horton Realty/PLR; Tony Brodie of Keller Williams
Realty; ABoR Director of Marketing Angela Brutsché; ABoR Director of Professional
Development & Education Shannon Bubel; Judith Bundschuh of Catalyst Realty;
David Burton of Horizon Realty; Chad Cardani of Keller Williams Realty; ABoR
Director of Government Affairs and Community Relations Emily Chenevert; Christine
Choate of Horizon Realty; Cathy Coneway of Stanberry & Associates; Barb Cooper
of Coldwell Banker United, REALTORS®; Marcus Cox of Avalar Austin; Kay DaSilva of
Avalar Austin; Kathy De La Cruz of RE/MAX Austin Associates; Pamela Drawbaugh
of Austin City Living; Helen Edwards of Coldwell Banker United, REALTORS®; Bill
Evans of Austin Real Pros, REALTORS®; Aaron Farmer of Texas Discount Realty;
Colette Fitzgerald of Realty Austin; ABoR Director of Member Services Beth Gatlin;
Leonard Guerrero of J.B. Goodwin, REALTORS®; Brandy Guthrie of Sky Realty; ABoR
Executive Assistant Vicki Harris; John Horton of John Horton Realty; Cheryl Jenkins
of Realty Executives, Austin-North; ABoR Director of Finance & Administration
Michael Johnston; Derrick Jones of Austin City Living; Susie Kang of Joa Realty;
ABoR President & CEO Matt Maire; Meghan Matta of The Groove Realty; Bruce
Matza of Innovations in Management LLC; Past Texas Association of REALTORS®
CEO and President Benny McMahan; Mark Minchew of RE/MAX Austin Associates;
Janet Murdock of J.B. Goodwin, REALTORS®; Julie Potts of Hill Country Property
Management; Sharon Rosshirt of Stanberry & Associates; David Schneider of
Goldwasser Real Estate; and Krisstina Wise of the The GoodLife Team.
24
Austin REALTOR®
July/August 2012
ethics case study
Common Craigslist Mistakes
The following scenarios are based on actual cases heard by members of ABoR’s Professional Standards Committee.
Situation One
Situation Two
REALTOR® C used Craigslist to advertise a number of
Housing and Urban Development (HUD) properties. These
properties were not a part of an IDX feed or a syndication
feed. REALTOR® C only checked the status of these listings if
someone inquired about one of them. Many times, these listings had sold or property listing details, such as price, had
changed. REALTOR® C also continued to display listings as
active even after she verified that the listing was sold, simply
opting to wait for the post to expire on Craigslist. REALTOR®
C did have a disclaimer stating that properties may not be
available for purchase.
REALTOR® X hired a vendor to place ads on Craigslist not
using an IDX feed or syndication feed. REALTOR® X did not
have oral or written permission from the agents or sellers to
do so. REALTOR® Y found her listing on Craigslist with inaccurate data about square footage and price, as well as insufficient brokerage and agency information. REALTOR® X was
remorseful and no longer advertises on Craigslist.
The Outcome
After a thorough review of the findings of fact, the hearing
panel concluded that REALTOR® C was in violation of Article
12 when she advertised properties that were not available
for purchase. REALTOR® C did not make reasonable efforts
to ensure that her advertising was current and accurate.
In Article 12 of the REALTOR Code of Ethics, “REALTORS
shall be honest and truthful in their real estate communications and shall present a true picture in their advertising,
marketing, and other representations. REALTORS® shall
ensure that their status as real estate professionals is
readily apparent in their advertising, marketing, and other
representations, and that the recipients of all real estate
communications are, or have been, notified that those communications are from a real estate professional.”
®
®
The Disciplinary Action
Based on the violation of the Code of Ethics, the Ethics
Hearing Panel determined that REALTOR® C will be required
to attend a Truth in Advertising class and a letter of reprimand will be placed in the REALTOR®’S file.
The Outcome
After a thorough review of the findings of fact, the hearing
panel concluded that REALTOR® X was in violation of Article
2 of the Code of Ethics when he misrepresented pertinent
facts, specifically, incorrect listing price and square footage
on Craigslist. He was also found in violation of Article 12
when he failed to clearly and properly identify his agency status and brokerage firm and did so without written authority
supported by Standards of Practice (SOP) 12-4 and 12-5.
REALTOR® X’s broker was also enjoined and found guilty
of an Article 12 violation when the broker failed to ensure
that REALTOR® X properly identified the brokerage in the
Craigslist ads.
In Article 2 of the REALTOR® Code of Ethics it states,
“REALTORS® shall avoid exaggeration, misrepresentation or
concealment of pertinent facts relating to the property or the
transaction. REALTORS® shall not, however, be obligated to
discover latent defects in the property, to advise on matters
outside the scope of their real estate license, or to disclose
facts which are confidential under the scope of agency or
non-agency relationships as defined by state law.”
The Disciplinary Action
REALTOR® X and his broker were sanctioned with the same
disciplinary action. Both were required to take a Truth in
Advertising class, the NAR Code of Ethics class and the
Reduce Risk, Increase Performance class.
To ensure you avoid committing ethics violations, review the Code of Ethics and Standards of Practice of the National Association of
REALTORS®, available online at www.abor.com/realtor_ethics/home.cfm in the Downloads section to the right of your screen.
July/August 2012
Austin REALTOR®
25
Tighter FHA Loan Eligibility Rules and the Implications
As spot approvals for Federal Housing
Association (FHA) condominiums
loans fade into memory and more
comprehensive documentation is
required, lenders and REALTORS® must
understand current FHA loan policy
guidelines and carefully follow the
updated requirements.
Warrantable and
Non-Warrantable
In 2008–2009, FHA condo loan
guidelines, which are part of the
United States Department of Housing
and Urban Development (HUD), were
tightened to ensure that a condo
development was warrantable and that
a loan could be sold to Freddie Mac,
(FMCC), Fannie Mae (FNMA) or HUD
(FHA). A warrantable condo means
that lenders view it as a low risk; its
features protect the condo complex
from future hazards and situations that
could threaten the property’s value.
This label refers to the condo complex
as a whole, instead of individual units.
Currently, condos that are labeled
non-warrantable are not eligible to be
sold to these government-sponsored
enterprises (GSE). Non-warrantable
loans are viewed as riskier because
most lending institutions sell to GSEs
and don’t service loans. As a result,
these loans require at least a 20
percent down payment for units that
are owner-occupied and 25 percent
for investors. Since these loans involve
more risk, a shorter amortization is
also offered.
According to Damien Squires of
AmeriPro Funding, if the condo project
is not on the FHA-approved condo
list, lenders cannot offer an FHA loan.
26
Austin REALTOR®
“Many project approvals expire or the
HOA doesn’t renew so lending becomes
a challenge when prior approvals may
have been available when a seller
purchased the unit.”
In order to be considered warrantable,
John Schutze of Supreme Lending
explained that there are two main
criteria that a condo development must
meet. “No more than 10 percent of the
units may be owned by one investor
and at least 50 percent of the units
must be owner-occupied. This keeps
one person from gaining too much
financial control.” Schutze continued,
“When a homeowner doesn’t maintain
his home, it affects that individual’s
home value. But every condo owner’s
property value is directly proportional
to his neighbor’s actions. As lenders,
these requirements help protect our
investments.”
Often in urban areas, condos are
used for commercial purposes. By
FHA standards, in order to be called
warrantable, a maximum of 25 percent
of the condo’s floor space in a building
can be used for this purpose. Critics
say this is too low and unrealistic for
condo projects in urban areas, where
retail and office revenues can be
important to overall financial feasibility.
Get FHA Approval
for Condominiums
If a condo development wishes to gain
FHA approval, there are two paths to
take. “A homeowners association (HOA)
or Board of Directors can partner with
a direct endorsed HUD lender who
will work on their behalf to obtain FHA
(HUD) approval. This is referred to
as the direct endorsed lender review
approval process (DELRAP) whereas
the lending partner will process an
application on behalf of the Board of
Directors,” said Squires. He continued,
“This is considered ideal, as the
DE lender is familiar with the inner
workings of HUD and can consult the
Board of Directors on the progress. It is
also a shorter approval process.”
Squires explained the second method
called the HUD Review Approval
Process (HRAP). This situation applies
when the HOA or Board of Directors
applies directly with HUD to seek
approval. “The application itself
is free but can be costly because
HOAs and Board of Directors usually
consult with a third party, such as
an attorney and or company that
specializes in approval, to expedite
the process,” Squires said. He further
stated, “Although application costs
nothing, fees can range from $250 to
$500 depending on if the project is
new construction or a prior approved
development. It is also important to
know that new regulation also requires
re-approval every two years. Prior to
the 2009 changes, once a unit was
approved it was permanent.”
A condo doesn’t have to be listed
on the HUD approval list if it is
considered a site condo. These types
of dwellings are unattached, singlefamily homes and are considered
individual, standalone structures. A
site condo does require a declaration
of condominium covenants or a condo
form of ownership.
Major Policy
Guideline Changes
Stricter rules state the budget
July/August 2012
shortfalls are no longer allowed. “HOAs
must show a 10 percent reserve
fund in their budget,” said Schutze.
“Because many of these groups didn’t
have anything extra in their budgets,
projects immediately were labeled nonwarrantable.”
Previously, HOA master insurance
policies did not cover “walls in” or
the condo’s interior. Squires said,
“The new FHA loan guidelines require
a complete review of the insurance
policy. If the master policy does not
have ample coverage, the buyer will
have to supplement the insurance with
‘walls in’ coverage for a minimum of 25
percent of the dwelling.”
Pre-sale requirements on new projects
and conversations are now 70 percent
owner-occupied versus 51 percent
owner-occupied for an existing project.
Paperwork Requirements
In order to apply for an FHA condo
loan, the development’s HOA or
Board of Directors must complete a
condo questionnaire. This document
includes several details, such as
the year the project was built, total
number of phases in the project,
monthly HOA dues amount, whether
the development contains commercial
space and if any special assessments
were made within the year.
Additional documentation that must
be submitted includes a cover letter,
master deed, the HOA’s current and
previous year’s budget, proof of liability
and property insurance, a sufficient
fidelity bond proving the insurance
coverage and legal documents, such as
covenants, conditions and restrictions
(CC&Rs), which govern the HOA, a plat
map of the property, by-laws and an
article of incorporation.
“In my experience,” said Schutze,
“after submitting a loan package
July/August 2012
to HUD, it takes the full 30 days to
receive a response. You can track
your submission status online, as well
as find out if additional supporting
documents will be required.”
Thoughts on Current
HUD Regulations
After delaying an April ruling that
prohibited borrowers with more than
$1,000 in disputed collection accounts
from receiving an FHA mortgage,
the FHA is currently taking public
comments from lenders, builders
and others in the industry to clarify
guidance and will make decisions in
July. The agency calls the restrictions
necessary, in an effort to avoid
insurance fund losses.
“In many cases disputes arise
that result in the credit report not
accurately reflecting the borrowers
willingness to pay,” said ABoR’s
Immediate Past Chairman Judith
Bundschuh of Catalyst Realty. She
explained, “That may be the rationale
behind loosening this criteria. As long
as underwriters can determine that
the risk is reasonable to loan to a
particular borrower even with some
disputed collections then overall it will
be positive for the housing market.”
There are also discussions that the
FHA may loosen current condo loan
restrictions, such as the one that bars
new loans on developments with more
than 15 percent of the units delinquent
for more than 30 days on condo
association dues.
According to Bundschuh, as long
as the FHA loan program prohibits
lending on units that have a certain
percentage of delinquent condo
association dues, the condos will be
slow to be sold and damper sales
in the condo market. “Many of the
condos that this affects are condo
projects that have foreclosures. The
condo dues are delinquent because
the banks own the condos and aren’t
going to pay the dues until the unit
sells. This is problematic because the
condo regime can’t get current without
owner occupants in the units, but
can’t get the owner occupants in the
units without the financing, which in
many cases should be FHA financing,”
Bundschuh said. “This move would be
great for the condo market and would
provide the financing in the market to
move foreclosed inventory.”
Other rules under debate include the
non-owner occupancy, delinquent
condo association fee payments and
non-residential space usage.
Though HUD’s decisions may have
slowed down recovery of certain
markets, some lenders have hope
for the successful management of
its new processes. “I think the FHA
has done a great job of consolidating
the guidelines and releasing
understandable clarification,” said
Schutze. “This process has helped turn
around the negative perception that
condos had been receiving. Also, with
FHA loans, we’ve got assurance with
HUD’s approval that the loan will sell,
so our risk is lessened.”
Even so, those anticipative of improved
regulations and efficiency may have
to be patient. “I don’t think we will see
HUD lighten any regulations on lending
until more stability can be provided to
this organization,” said Squires.
Autumn Rhea Carpenter
is a freelance writer and
editor who writes about
real estate trends and
home design for several
local publications, including Austin Monthly, Realty Line Austin and
the Austin REALTOR®. She’s also an SEOfriendly ghostblogger, web content writer
and copywriter.
Austin REALTOR®
27
legal topics
How To Avoid Losing Your Property By Adverse Possession
Let’s examine a fairly common example of adverse
possession. Assume Mary owns Lot 1 and Bill owns Lot 2.
At the rear corner of Lot 2 on the boundary line between Lot
1 and Lot 2 there is a large oak tree with roots right on the
surface. So, when Bill fenced his lot about twelve years ago,
he angled his fence line about 10 feet into his lot at the rear
to miss the tree and its root system. By moving his fence off
the lot line and further into his property, he created a triangle
of his lot, which was essentially fenced in a way that denied
Bill access to the triangle of land and made it accessible
to and a part of Mary’s lot. Mary’s yard was landscaped as
though the triangle of land was part of her yard.
Mary has owned her lot for five years. Last week, her lawyer
sent Bill a letter claiming that Mary owned the triangle of
land fenced out by Bill. The letter said she had acquired title
by adverse possession. Has she?
If a party claiming title to property does not have a deed
(or some other title document) to the contested property,
to claim title to the property a person must (1) actually and
visibly possess or take control of the contested property;
(2) under a claim of right that is hostile to the claim of
another person; (3) for a period of not less than ten years.
The adverse possession of the contested land must be
continuous, it must be to the exclusion of all other persons
and the area claimed must be clearly defined.
Allowing a person to obtain title to real estate, which has
been deeded to and is owned by another person, is a harsh
remedy. For that reason, the requirements to obtain title
through adverse possession are strictly enforced. Close is
not good enough. If you cannot meet all of the requirements,
you lose your claim.
Let’s examine Mary’s claim. Has she actually and visibly
taken possession and control of a clearly defined parcel
of property? The area is fenced as part of her yard, so it is
pretty clearly defined. She maintains it as part of her yard,
and her use is open and hostile to Bill’s use. He cannot get
to the contested property because of the fence.
28
Austin REALTOR®
Bill contends that since Mary has only owned her lot for five
years, she cannot meet the requirement that the property
must be adversely claimed for at least 10 years. However,
the law allows Mary to “tack” her claim onto previous title
holders. In other words, if the claim to the contested property
existed during a time when someone else owned the
property, that time can be added to Mary’s ownership time.
The fence was erected over 12 years ago, so Mary meets the
10 year requirement.
Bill hired a lawyer. Initially, they decided that the best
defense to the claim was an assertion that the use was not
hostile to Bill because he had erected the fence and fenced
out the contested property. Bill claimed the use could not
be hostile since he had, in essence, given the adjacent lot
owner the use of the property.
However, when Bill’s lawyer investigated the title, she found
another disturbing fact. When Mary purchased the property
five years back, she required the seller of the property to
sign a sworn affidavit stating that he had openly claimed and
used the property since the fence was erected and that his
claim and use was hostile to Bill. This probably defeats Bill’s
claim that the use of the contested property was not open
and hostile. When the affidavit was filed in the real estate
records, Bill was placed on notice that there was a hostile
claim to his property.
Litigation will almost certainly be required to settle the claim
to the property to the satisfaction of a title company. And no
one can predict with 100 percent accuracy what a court will
determine, but Mary certainly has a very solid claim to the
property.
What should you do if you have a situation
where another person can claim title to your
property through adverse
possession? The one thing
you should not do is
nothing. The passage of
time makes the problem
worse for the person at
risk of losing property
through adverse
possession.
Photos © StockXpert.com/alxm
You have probably heard the old saying that “possession
is nine-tenths of the law.” Adverse possession is a legal
concept which can make that statement true.
It’ll be a Night for Partnerships
The 2012 Installation and Awards Gala is accepting partnerships from businesses
that would like to dance their way into the minds of REALTORS®. The Dancing with
the Stars of Real Estate event is expected to pull in over 500 real estate movers and
shakers doing what they do best on the dance floor. Ensure your business gets the
right exposure from recognition in the program to an auditorium at Austin Board of
REALTOR®’S office named for your business. For information and forms, go to www.
abor.com/installation or contact Shirley Williams at [email protected] or 512454-7636, ext. 1603.
If you have a neighbor who is physically using part of your
property to your exclusion, the best approach is to contact
your neighbor, explain the problem and get an agreement
to move the fence or otherwise remove their use of your
property. If you want to allow them to continue to use the
property, let them know that you will allow them to do so for
the time being but require a written document granting them
temporary use. We would typically use a document called a
“license” to grant temporary use.
Once you give consent for a person to use your property,
their claim cannot be “adverse” to your claim of title because
you granted permission for use of the property.
If you cannot get your neighbor to move a fence or agree to
a license, you can file an affidavit in the real estate records
refuting any claim of adverse possession and stating that
you have given permission for the use of the property. This
July/August 2012
will be helpful in defeating a later adverse possession claim
by your neighbor.
To make certain you do not lose the property, if you cannot
prevent the adverse use of your property or get a signed
license or some similar document, litigation is the only
sure way to prevent loss of the property through adverse
possession.
Don R. Hancock is a partner in Hancock &
McGill, L.L.P., attorneys at law. He received his
undergraduate degree from Texas A&M University
in 1968 and his J.D. degree from the University of
Texas Law School in 1971. Hancock has practiced
real estate law in Austin since receiving his law
license.
Austin REALTOR®
29
facts & figures
2,340
May 2012
1,874
May 2011
1,700
1,900
$215,000
May 2012
$195,250
May 2011
2,100
2,300
180,000
2,500
9,000
10,000
220,000
$278,855
$265,979
May 2011
9,744
May 2011
8,000
210,000
May 2012
7,551
7,000
200,000
Median Sales Price
Number of Homes Sold
May 2012
190,000
11,000
220,000
240,000
260,000
280,000
300,000
Average Sales Price
Active Listings
62
May 2012
81
May 2011
50
60
70
80
90
Average Days on Market
May 2012
Strong Demand, Increasing Prices Continue for
Austin-area Real Estate
According to the Multiple Listing Service (MLS) report
released by the Austin Board of REALTORS®, the competition
for Austin properties is intensifying as May 2012 became the
12th straight month of sales volume increases and the fourth
straight month of price increases for Austin-area homes
compared to the same month of the prior year.
Specifically, 2,340 single-family homes were sold in the
Austin area in May 2012, which is 25 percent more than
May 2011. During the same time period, the median price
for Austin-area homes was $215,000, or 10 percent more
than the same month in 2011.
30
Austin REALTOR®
Leonard Guerrero, Chairman of the Austin Board of
REALTORS®, commented, “The inventory of homes in the
Austin area has been shrinking since this time last year
while demand has remained strong, outpacing 2011 by
double digits each month since last summer. As a result,
prices are increasing as buyers compete more aggressively
for available properties.”
In May 2012, the market featured 4.4 months of inventory,
which was 2.4 months less than May 2011. In addition, the
market featured eight percent more new listings, 23 percent
fewer active listings and 20 percent more pending sales in
May 2012 compared to the prior year. On average, homes
spent 62 days on the market in May 2012, which is 19 days
less than May 2011.
July/August 2012
in the news
Throughout the year, ABoR works hard to promote REALTORS® knowledge of real estate market conditions. Below, you will
learn about some of the media coverage ABoR has received in recent months. You can also monitor the exposure ABoR has
received on our website. View ABoR’s television and online news coverage at www.abor.com/newsonline.
April 19, 2012: Using data from the ABoR monthly housing
market report, the Austin Business Journal reported that
in March 2012, 1,852 single-family homes were sold in the
Austin area, which is a 15 percent increase from March
2011’s statistics. ABoR Chairman Leonard Guerrero said,
“This marks the tenth month in a row that Austin has seen
year-over-year increases in sales volume.” The total number
of pending sales in March stood at 2,331, or 16 percent
more than March 2011.
April 19, 2012: KVUE News, pulling information from
the ABoR statistics release, pointed out that condo sales
in Austin grew by 37 percent in year to year comparisons.
The average median price reported for a condo was up 15
percent as well, falling right at $189,450. Cynthia Mattiza
of Realty Austin reported that a property “goes on the market
and literally within seven days, you probably have multiple
offers.” Ryan Rodenbeck of Spyglass Realty mentioned his
experience with the year’s changes saying, “The last seven
houses we listed this year have gone full price or above.”
April 19, 2012: The Austin American-Statesman reported
on statistics released by ABoR showing a general upward
trend in the real estate market. Former ABoR Chairman
John Rosshirt was quoted saying, “we’re past the through
and starting on the upside.” March 2012 marked the tenth
straight month of increased monthly sales when compared
year-over-year. As the Austin market dips below a monthly
supply of 4.4 months, prices are expected to tick upward as
the supply of homes shrinks.
April 24, 2012: ABoR hosted a public water forum,
presented on April 24, which brought many issues related to
the water crisis to light. YNN provided coverage of the
event and released an article on their website. In the article,
former ABoR chairman, St. Edward’s professor and water
July/August 2012
rights expert Charles Porter asserted that “without water…
our cities go away, our tax bases go away, nobody moves
here… we want to take care of that most fundamental issue.”
April 30, 2012: After eight straight months of gains, the
Kyle-Buda real estate market took a dip during February and
March, reported the Hays Free Press using data from an
ABoR housing report. Although only 65 homes sold in the
area during March, homes were on the market for shorter
periods than homes listed in March 2011. A seasonal
increase in home listings was expected for the area, but
inventory shortages are, as NAR’s chief economist Lawrence
Yun said, “an issue in several markets with not enough
homes for sale in relation to buyer interest.”
May 9, 2012: KXAN used information provided by the March
2012 ABoR stats release to demonstrate the burgeoning
multi-family residential real estate market in Austin. The
article focused on two incoming apartment complexes in the
North Austin area around Burnet Road. The statistics used
from ABoR indicated that the multifamily residency was at
nearly saturated occupancy levels even back in 2011. The
projects do not have established deadlines for construction at
this time.
June 6, 2012: KVUE News spotlighted the growing desire
of Central Texans to cut down on their increasing energy
bills. To talk about this issue, the news station spoke to
ABoR Chairman Leonard Guerrero. Guerrero suggested
small changes that can be made to homes to make a huge
difference in energy costs. Incorporating more heat-resistant
plants into their yards, replacing old windows with better
insulated ones and installing an efficient air conditioning
system can all greatly improve a home’s energy efficiency.
Home buyers looking to gauge the monthly energy costs of a
potential home can visit www.austinenergy.com/go/ecad.
Austin REALTOR®
31
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