may 2012 - wisconsin real estate magazine

PIER GRANDFATHERINGKnow the specifics of the new legislation.

BEsT oF THE LEGAL HoTLINEWho really should sign the Offer to Purchase.

$5.00May 2012 MAGAZINE

12 Common Technology Mistakes

[and How to Avoid Them]>> Page 6

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may 2012 | vol. 28, no. 8

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table of contents

12 Common Technology MistakesAre your technology choices good for your business? Might your tech choices put you and your clients at risk for mistakes? Find out!

Tick TockUnclear about deadlines in the Offer to Purchase? Take your eyes off the calendar and read to learn more.

New Pier Grandfathering Legislation Signed Into LawLearn about the background and details of Wisconsin Act 167, signed into law just last month.

Walker for GovernorA summary of Tom Barrett’s real estate-related voting record.

features articles

26

2 IfNotUs,Who? A look at wind siting regulations.

13 TheBestoftheLegalHotline:SignHere Questions and answers cover life estate sales, LCCs,

sibling sellers and more about who really should sign the offer.

16 Landlord-TenantLaw:NewCheck-InSheetsandPropertyDisposalProcedure

An overview of the changes made during the recent legislative session regarding Landlord-Tenant Law.

20 ProductShowcase:BalancetheTechnologyTightrope Make the most out of your technology use with these

products. Plus a new product announcement!

24 TheBenefitsofHomeownership This month’s REALTOR® Sales Tip will recharge your

drive for June Homeownership Month!

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wisconsin real estate magazine | may 2012 1

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United Way Honors tHe stark Family For service to commUnity

United Way of Dane County

United Way of Dane County recognized the Stark Family with the 2008 Tocqueville Society Award for outstanding service to the Dane

County community and United Way. The Tocqueville Society Award celebrates and acknowledges people or families, such as the Starks, who have made a major impact on the quality of life in Dane County through their exceptional service and commitment to the community.

city HoUsing aUtHority receives 100-Unit grantMilwaukee Journal Sentinel (09/25/08) Pabst, Georgia

The city of Milwaukee’s housing authority is due to receive $6.7 million in federal Hope VI money to build 100 new housing units. The 100 units will be constructed in a 2.5-mile area and will include 29 public housing and affordable rental units; nine affordable housing units for income-eligible families; and 62 moderately priced, open-market condominiums. HUD Secretary Steven C. Preston comments, “Milwaukee’s housing authority has demonstrated it has the leadership to lead and revitalize neighborhoods and transform lives. Cities like Milwaukee change and grow and need to revitalize housing to make sure many aren’t priced out.” Milwaukee is one of a half-dozen housing authorities nationwide to receive new Hope VI grants.

HoUsing stUdy delay FrUstrates advocatesMilwaukee Journal Sentinel (10/07/08) Williams, Scott

Two years after promising the Milwaukee metro area’s first major housing study in three decades, the Southeastern Wisconsin Regional Planning Commission (SEWRPC) is still struggling to get the effort launched. Proponents hope the study will serve as a catalyst for improving affordable housing opportunities throughout the city’s suburbs. But commissioners have yet to assemble an advisory committee to oversee the research or set a specific timetable for conducting the survey. Phil Evenson, the commission’s executive director, said other issues keep getting in the way. The delays have frustrated housing advocates the most. Bethany Sanchez, vice president of the Metropolitan Milwaukee Fair Housing Council, laments, “It’s been a long time coming.” The Pewaukee-based commission has not conducted a comprehensive review of housing patterns since the 1970s.

Wisconsin receives millions to ease ForeclosUre crisis Milwaukee Business Journal (WI) (09/30/08)

The state of Wisconsin is due to receive nearly $39 million in federal funds to stabilize neighborhoods and stave off a spate of abandoned homes. According to HUD and Gov. Jim Doyle, the funds are separate from approximately $9.2 million the government is awarding the city of Milwaukee, where the foreclosure rate is currently 9.9 percent. HUD is awarding the funds via its Neighborhood Stabilization Program, under which almost $4 billion is being allocated to local and state governments for the redevelopment of abandoned and foreclosed houses.

sites: not JUst For Personal connections anymoreMinneapolis-St. Paul Business Journal (09/29/08) Grayson, Katharine

St. Paul, Minn.-based REALTOR® Teresa Boardman says Flickr, Facebook and other social networking sites make it easy to meet people who might eventually become clients. While many professionals are using these sites to make business contacts and companies use them to conduct background checks or recruit new workers, many simply want to connect with people who have similar interests. According to Boardman, “The hard sell is dead. It doesn’t work door-to-door, and it doesn’t work on social networks.” On Flickr, Boardman connected with a fellow photographer who eventually used her services to purchase a home.

ForeclosUres PUsH rents HigHer, sqUeezing loW income FamiliesMinnesota Public Radio (MN) (09/21/08) Olson, Dan

In Minnesota’s Twin Cities, a wave of home foreclosures has pushed more people into the rental apartment sector. The result is an intensifying demand on Minneapolis and St. Paul’s rental housing stock, so much so that the vacancy rate is very low and rents are on the rise. This, in turn, means low-income working families face higher monthly rents even though their income hovers at unchanging levels. Since 2005, the Twin Cities apartment vacancy rate has dipped from 7 percent to closer to 4 percent. Average monthly rents over that same time span are up more than $25, rising to more than $850. The St. Paul-based Wilder Foundation recently reviewed income data for several Twin Cities counties. The organization’s research found that the number of people in those markets paying too much for their rental housing will double from around 70,000 currently to a whopping 140,000 by 2010. Some say a partial solution would be for the U.S. government to reverse course on housing policy and

substantially increase funding for rental assistance,

particularly help for working families.

nar releases Free FHa toolkit Wisconsin REALTORS® Association (10/30/08)

NAR and the WRA are eager to help you meet the

current challenges of the troubled economy. We

know that you need resources that can help you

close transactions, and you need them at little or no

cost. NAR has just released an all-new FHA Toolkit

online for FREE to help you get clients the financing

they need in a credit-strapped environment. It is

one of the most comprehensive toolkits NAR has

ever produced, and it’s available to all REALTORS®

right now by visiting the link below. They also have

launched a new page called “NAR Helps You Navigate

the Current Economy” where you can find dozens of

great products and resources, like the FHA Toolkit,

for free or at a steep discount. Visit www.Realtor.

org/NARHelpsYou for links to these great programs

and products.

Home loans going strong, albeit a bit tigHter, in area Wisconsin State Journal (10/17/08) Balousek, Marv

Despite the ongoing national credit crisis, property

professionals say mortgage money remains available

throughout southern Wisconsin to home buyers

with solid credit. Ron Steinhofer, manager of

Marshall & Ilsley Bank’s regional home lending

group, states, “There’s plenty of money for home

loans out there. It is slightly more difficult to qualify

than two or three years ago, but if you have a good

credit score, a good job and a down payment, money

is available.” Steinhofer adds that banks still are

making loans via such programs as Fannie Mae

and Freddie Mac. Furthermore, credit standards

remain about the same as they were six months ago,

meaning that qualified home buyers can get loans

if they have the proper income verification. On the

downside, banks have been less willing to make

loans with higher loan-to-value ratios. In addition,

conventional financing without a down payment has

indeed disappeared. However, 100 percent financing

is still available with Veterans Administration and

Rural Development home loans.

News

Top News Stories in and Around the Industry

Bill MalkasianWRA President

fnotus,who?Ifnotnow,when?

You’ve probably heard this sayingnumerous times. But nowhere is theapplication of this principle more

appropriatethanourassociation’seffortstobalancewindpowerwithpropertyrightshereinWisconsin.

TheWRAhasbeen criticized in themedia and inthecapitoloverthepastyearforbeingtheleadingopponenttonewwindturbinesitingrulesthatarebased on a state law passed several years ago.The law, pushed by the wind industry, eliminatedlocalgovernmentpowertoregulatewindturbinesand instead created a single statewide standard.Withoutlocalcontrol,landownerswerelefttofendfor themselvesagainst largewinddevelopersandtheirlawyers.

Despite risks to private property rights and localcontrol, theWRA did not oppose the law when itwasbeingconsideredbythelegislature.Weclearlyunderstood the need for clean, alternative energysourcesinWisconsin.Butwewantedtoensurethatpropertyownersreceivedpertinent,understandableand timely information on which to make aninformed decision.We also wanted to make sureturbineswereplacedfarenoughawayfromhomesandotherstructurestoprotectpropertyownersandneighborsfromexcessivenoiseandvisualpollutionaswellastoprotectpropertyvaluesforall.

Supporters of the legislation assured us that ourconcernswouldbeaddressedintheadministrativerulemaking process that followed passage of thelaw.Howeverastherulemakingprocessproceeded,it became increasingly clear that noneof thekeypropertyrights issueswesought toprotectwouldbeaddressed.Thelouderwecomplained,themoreapparentitbecamethewinddeveloperscontrolledthe majority of the committee, and they had nointentionofweakeningtheirhand.Asaresult,therules, like the law,advancedwithout thepropertyrightsprotectionswesought.

It was a fight we didn’t seek and very muchwanted to avoid. In our minds, solutions seemedeminently reachable. But the wind developersandtheirsupporterswantedtoprotectprofitsandalternativeenergy—nottherightsoflandowners.Most uplifting was the support we received fromhundredsofpropertyownerswhowereoverjoyedattheWRA’sresolvetostandwiththem.Together,we argued that allowing massive industrial windturbines —someashighas500 feet—within

1,200 feet of a home and within 550 feet of acommercialorindustrialbuildingwouldnegativelyimpactpropertyvaluesandcreatesignificanthealthand safety risks to area residents. We proposednumerousalternatives.

We argued to give homeowners some timeafter entering into a contract with a wind energycompanytohaveanattorneyreviewthecontract.We argued the state provide an informationalbrochure to homeowners describing wind energysystems,statestandardsandpossibleimpacts.

Wearguedthatanyonenegotiatingaleaseonbehalfofawinddevelopermusthavearealestatelicense,asrequiredunderChapter452ofWisconsinlawsothey must obey the fiduciary obligations such ashonestyandfairnessanddisclosureofallmaterialadverseinformationlikeotherrealestatelicenseeswhonegotiateleases.

Andwearguedthatthestateshouldberequiredtoconductlonger-termstudiesaboutthetrueimpactsof wind energy systems on neighboring propertyowners.

Despitebipartisanlegislativesupportforourefforts,the Public Service Commission (PSC) refused tomakeanychanges.

Gov.Walkersidedwithpropertyownersimmediatelyupontakingofficeandbeganeffortstoreversetherules. He was joined by many lawmakers whoalsochampionedprivateproperty rights.Howeverdespite numerous legislative and administrativeefforts,andourbestattemptsatshuttlediplomacy,theclockranoutonthelegislativesessionwithoutresolving the issue and as a result, these flawedwind rules went into effect March 15. Delightedwind developers promised to begin siting newturbines immediately. This means property rightsare under a real and imminent threat right here,rightnow.

We fought hard for fairer wind siting rules andfor the rights of property owners. We endureddamningmediastories that failed to focuson theland owners’ rights being lost or the reasonablealternativeswewereoffering.

Butitwasallworthit.Notjustforthepeople,butfortheprinciple.

Foraffectedpropertyowners,theynowfacehealthproblems such as insomnia, anxiety, headachesand nausea — symptoms illustrated repeatedly

atpublichearingsby thoseliving near existing windturbines. They face the noisepollution caused by a constant“whooshing”orpulsatingnoisethatcan be heard day and night, insideand outside homes located too closeto turbines that are too big. Neighborswill be subject to“shadow flicker” whenthecloudsand thesunalignwithmassiveturning blades and cast rhythmic shadowsacross the rural landscape. And they facefalling property values, estimated by oneWisconsin-basedstudy toup to43percentonvacant landandup to39percenton improvedproperty.

The protection of property values and propertyrights is not an abstract theory we are fightingforhere. It isavery fundamental legal right thatisalsotheunderlyingbasisforourentireindustry.Asalegalright,the5thand14thAmendmentstothe United States Constitution say governmentsshall not arbitrarily infringeon thebasic rightsofindividualstoacquire,possessandfreelytransferrealproperty.Indeed,theREALTOR®organizationisfoundedontheprincipleofprotectingthefreedomto buy, sell and use property — which is thebasisofallrealestatetransactionsandmarkets.Government-imposed restrictions or limitationsthatdenypropertyownersthehighestandbestuseoftheirpropertynotonlyhindereconomicfreedom, they hamper social freedom aswell. Governments certainly have the rightto protect public health, safety and theenvironment. But when government actsoutside those legitimate police powersandviolate fundamental rights like therightsofprivatepropertyowners,weasREALTORS®mustbepreparedtoactivelyopposethem.

If not us, who? If not now,when?

MikeTheo

with mike theo

i

inside the wra

If not us, who?

2 wisconsin real estate magazine | may 2012 www.wra.org/wrem


rob keefe, [email protected]

renny diedrich, [email protected]

steve lane, [email protected]

michael theo, cae, [email protected]

editorial staff:

michael theoPublisher

robert UhrinaAdvertising

lauren bizorikEditor

Joe leschisinSenior Designer

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

Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper credit in all articles or commentaries, and the WISCONSIN REALTORS® ASSOCIATION is provided with a copy of any reprint.

Advertising of third party products and services herein does not imply endorsement by the WRA unless specifically stated. Furthermore, the WRA does not endorse, approve, or otherwise warrant the accuracy or legality of any information or content contained in advertisements. Any questions regarding advertising policies should be directed toward the editor.

contact Us:

4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337(608) 241-2047 • (800) 279-1972

legal hotline: (608) 242-2296 • (800) 799-4468general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: [email protected] website: www.wra.org

Wisconsin Real Estate Magazine™ is published by the Wisconsin realtors® association. Trademark issued pursuant to Wisconsin state statute; federal

trademark is pending.Real estate

notes from the wra

facebook: www.facebook.com/wisconsinrealtorstwitter: www.twitter.com/wirealtorslinkedin: www.wra.org/linkedinyoutube: www.wra.org/youtube

2012 realtor® children scholarship WinnersTheScholarshipCommitteeof theWisconsinRealtors®Foundationhasawarded its annualREALTOR®ChildrenScholarships.Thescholarshipsareawardedon thebasisof the individual’s scholasticachievement, leadershipabilityandservicetohisorherschoolandcommunity.EligibleapplicantsmustbechildrenofREALTOR®membersin active standingwith theWisconsinREALTORS®Association for thepast threeconsecutive yearsprior to thescholarshipapplication.

TherecipientsandtheirREALTOR®parentsare:EmilyBlackwell(SandiBlackwell)Sussex;MatthewDooley(JosephDooley)GreenBay;BrandonGarczynski(DaleGarczynski)DeForest;AdamJasperson(AlanJasperson)Caledonia;RyanPrestil(MatthewPrestil)Janesville;ChloeSiamof(ChristinaSiamof)Appleton;MitchellStingl(DebraStingl)Wauwatosa;TylerTannis(JudithTannis)Waukesha;CarleyValentine(DeanValentine)DePere;AustinWhite-Pentony(AllanWhite)Fitchburg.

TheFoundationcongratulatestheserecipientsandtheirparentsandwishesthemthebestintheirfutureendeavors!

At theJanuary1985boardofdirectorsmeeting, theWRAestablished theDistinguishedServiceAward.ThepurposeoftheawardistoproviderecognitiontothoseREALTORS®whohaveprovidedmanyyearsofleadershipand distinguished service to theWisconsin REALTORS®Association.All current members, local associationexecutivesandemployeesof theWisconsinREALTORS®Associationwithat leastfiveyearsmembershiporemploymentareeligible.ApplicationdeadlineisJune29,2012.ApplicationsareavailableontheWRAwebsiteatwww.wra.org/Resources/Membership/Awards/Distinguished_Service_Award.

distinguished service award applications available

AsaWRAmember,youhavememberbenefitsavailabletoyou.TheWRAcarefullyselectsprogramsthatoffervaluablehealth,life,dental,anderrorsandomissionsinsuranceaswellaswebdesign,phoneserviceandmore!

Health, Dental & Life Insurance Plans

Wra member benefits

Relax.Our Member Benefits have you covered.

ThroughREGIT,Inc.,specificallydesignedwithREALTORS®inmind.www.regitinc.com

Errors and Omissions InsuranceThroughPearlInsuranceandunderwrittenbyXLAmerica,Inc.www.pearlins.com

UPS Discounts & Delivery PlansHassle-free!Onceyouenroll,yoursavingsareautomaticeverytimeyouship.www.savewithups.com/wra

Long Distance Telephone ServiceNomonthlyplanfee,notime-of-dayrestrictions.Savebigmoney!www.ami.net

Real Estate Home PagesCreate,editandmanageyourownwebsite.Freeseven-daytrial.www.realestatehomepages.com

Office Supplies 2U/Emmons Business InteriorsYournewestmemberbenefit!Officesuppliesandfurniture.www.os2u.com,www.ebiweb.com

Subject to change.

Editorial Correction: IntheApril (Vol.28,No.6)editionofWisconsinRealEstateMagazine,thearticle“TheClosingBell”notedinsubpointCofthe“PresumptiveApproval”paragraphthatpermitsaredeemed“improved”bytheDNR.Rather,permitsaretobe“approved”iftheDNRdoesnotmakeadecisionwithinstatutorytimelines.


June will mark Homeownership Month, and this year it takes on special significance. During my lifetime, we

have taken for granted that the concept of homeownership as a way to build wealth and secure a future for your family was an essential element of the American Dream. Along with that came the concept of your home as your castle, the iconic symbol of private property and ownership. Today we are faced with the unpleasant reality that these concepts are under attack like no other time in modern history.

Pressure from government at all levels has ratcheted up on owners of private property. Cash-starved government bodies view homeowners as a lucrative source of funds. The broad private property rights we have enjoyed are viewed by many in government as unwarrantedly broad and ripe for trimming. By working together as an association, we have been able to score major victories in Wisconsin over the last two years in preserving the sanctity and appeal of real property ownership. Spearheaded by our great staff and supported by you, the WRA secured passage of a number of very significant bills in the last legislative session. Among the wins were bills preserving our right to build piers, reconstruct damaged nonconforming structures, making common-sense changes to help landlords administer their rentals, and placing some boundaries on local governments’ ability to enact development moratoria. Perhaps most significantly, under the leadership of Gov. Scott Walker, the state was able to close an enormous budget deficit without going to the till of the property tax bill. There is plenty of work left to do here in Wisconsin. We were unable to have a number of other bills addressed before the legislature adjourned, including legislation preserving a property owner’s right to rent their property.

At the federal level, the record of success has been more limited. The federal government has a vast deficit which it must close, and once again, property owners are being eyed as

“contributors.” The tax deductibility of mortgage interest will be on the block, and many smart people predict that some curtailment of this tax policy is likely. The government continues to put counterproductive roadblocks in the way of investor-buyers of foreclosed and short sale property. The continuing encroachment of federal regulations into the realm of private property rights is well documented. The government seems directionless in its search for an appropriate role for federal funds in supporting mortgage finance and raises the regulatory burden on banks while simultaneously demanding more availability of mortgage loans. This is the stormy environment in which NAR finds itself and why our contributions to NAR/RPAC are so important.

Finally, and perhaps most concerning, is the fact that many young adults see homeownership in a less positive light than their parents. People tend to have a short view of history, and for many, the housing downturn of the last five years has characterized their entire perception of real estate. It is incumbent upon us as professional REALTORS® to defend the concept of homeownership, to put the recent downturn into perspective, and to continue to highlight the attractiveness of homeownership to a new generation of buyers. Why us? Because no one else can do it! No other profession has the lobbying clout to defend homeownership in government circles, and no other group has the professional credibility to defend property ownership to prospective buyers. The facts are on our side. What can you do? With buyers, be ready to highlight the economic and social benefits of homeownership over the long term. With our government, invest in RPAC/Direct Giver, attend town halls, and make sure your representatives hear your voice. If you need help from your association, we are ready to the answer the call.

Respectfully,

Robert KeefeChairman’s Corner

Rob Keefe


monthly wisconsin housing reportnews

>

ByDaviDE.Clark,EConomist,C3statistiCalsolutionsView all housing statistics at

www.wra.org/housingstatistics

Existing home sales were up significantly in March, with home sales growing 25 percent over the

levels of March 2011, according to the latest monthly report by the Wisconsin REALTORS® Association (WRA). Home prices in March also rose slightly for the first time since the end of 2010, up 0.4 percent to $123,500 compared to the same month last year.

“We certainly had a mild winter, and that may account for some of the strength in home sales last month, but it’s important to note that we’ve seen very strong growth in home sales over the last nine months,” said Rob Keefe, Chairman of the WRA board of directors. He pointed out that all regions of the state were up in March, and most saw growth in the range of 24 percent to 33 percent. The Northeast and the Central regions grew at approximately 32 percent over the period, whereas three other regions — North, South Central and Southeast — were up between 24.3 percent and 27.9 percent over the period. Finally, the West region was up eight percent in March 2012 relative to March 2011. “These are the strongest signals we have seen in some time going into the spring selling season,” said Keefe, who noted that the combination of low

rates and modest improvements in the job market should support continued growth in sales.

The WRA says an improving state jobs market is helping home sales. Since December, the state has added nearly 18,000 nonfarm private jobs even as government employment fell by 3,400 based on seasonally adjusted estimates. “It’s encouraging to see job growth in the state, especially in relatively high-paying sectors,” said Michael Theo, WRA President and CEO, who noted that the manufacturing sector added 4,300 jobs, and construction sector employment was up 6,500 workers over the period. “It’s also good to see some slight improvement in home prices as inventories continue to be sold,” said Theo. After peaking at just under 72,000 unsold homes in July 2011, the state has averaged 52,758 unsold homes over the first three months of this year. “Putting a dent in the stock of unsold homes is key to home price appreciation, and we saw median prices grow in four of the six regions statewide,” said Theo. The strongest appreciation in median prices was in the North region where median prices rose 10.5 percent in March compared to March 2011. Theo cautioned that some of this change in the median price may be due to a change in the

mix of homes sold, for example from lower-cost vacation properties to more high-end properties. Also strong was the Central region where median prices rose 6.7 percent over the period. The Northeast and West regions were also up in March in the range of 3.5 to 3.7 percent, and the Southeast and South Central parts of the state had slight reductions in median prices, down 3.1 percent and 2.3 percent, respectively.

The Wisconsin Housing Affordability Index, which measures the percentage of a median-priced home that a buyer with the median family income can afford, was at 260 for March. This is down from a revised 280 in February. While housing remains very affordable in the state, there are clear indications that the market has been strengthening. “With low housing prices and historically low interest rates, this is an excellent time for those who have been considering a house to make the jump to ownership,” said Theo. He noted that using an experienced REALTOR® can help new buyers identify exceptional opportunities in whatever market they are considering.

For more information, contact David E. Clark, Economist, C3 Statistical Solutions Office phone: (414) 803-6537

WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - MARCH 2012 Statewide MAR-2012 MAR-2011 % Change YTD-2012 YTD-2011 % Change

NewListings 11,605 11,914 -2.6% 29,261 28,708 1.9% ClosedSales 4,791 3,834 25.0% 10,863 9,112 19.2%MedianSalesPrices $123,500 $123,000 0.4% $120,000 $122,500 -2.0%

Median Price Existing Home Sales Region MAR-2012 MAR-2011 % Change MAR-2012 MAR-2011 % Change

Southeast $127,000 $131,000 -3.1% 1,797 1,446 24.3%SouthCentral $147,000 $150,500 -2.3% 943 749 25.9%West $125,000 $120,750 3.5% 445 412 8.0%Northeast $112,000 $108,000 3.7% 897 675 32.9%Central $94,900 $88,900 6.7% 287 217 32.3%North $105,000 $95,000 10.5% 413 323 27.9%

HousIng Market recovery contInues In MarcHHome sales and prices up, signaling a continuing housing recovery

by JOE LESChISIN

12 Common Technology Mistakes

If you’re not particularly tech-savvy, the notion of buying, maintaining or learning about technology for your business can be difficult and alarming.

12 COMMON TEChNOLOgy MISTAkES ANd hOW TO AvOId ThEM

verything from social media to gadgets you use to lack of knowledge can affect your efficiency as a small business owner. Your schedule is loaded with

events during the week and on weekends; don’t let technology inefficiencies get in the way of running your business. Here are 12 common tech mistakes and how you can effectively avoid them.

Improper E-mail Etiquette

While smartphones are so popular these days, we find ourselves using them to communicate in multiple ways: call, text, e-mail and surf the web. We use smartphones so much that the language we use to text and e-mail closely resemble each other. We need to take time to make sure e-mails remain professional and we are not using

[and How to Avoid Them]

e6 wisconsin real estate magazine | may 2012 www.wra.org/wrem

language — or abbreviations — you would in a text message. We find ourselves becoming dependent on auto-spell correct and forget to actually proof our e-mails before we fire them off. Remember — you are the professional, and you should communicate like one. You only get one first impression, so make it a great one.

Not Using Cloud Computing

At any place and at any time of the day, you are able to access documents, files, images and even your home or office computer, thanks to cloud computing. It eliminates the need to carry around dozens of unneeded folders or a jump drive. Services such as Dropbox, Google Drive, SkyDrive, SugarSync and Box.net offer free document storage that you can access as long as you have an Internet connection. They also offer a paid subscription if you need larger storage space. Setting up a remote desktop connection will allow you complete access to the computer of your choice. I will say use cloud computing with caution. Even though it is safe and secure, you are still placing some of your most important documents on the Internet that are accessible if your username and password were ever given out.

“At any place and at any time of the day, you are able to access documents, files, images and even your home or office computer, thanks to cloud computing.”

Jumping on the Bandwagon

Technology is a fast-paced environment. New apps and services are coming out every minute of every day. Make sure to do your research before jumping on the bandwagon with new technology products, services and devices. Usually products or services offer a free trial before you have to sign up. Ask questions, see if any colleagues have used the platform before, and read reviews. Consumer and online reviews provide some of the most upfront and honest feedback on a particular service. For every service you’re looking for, there are probably a hundred options and only a few that will be the best fit for you and your business. QR codes, for example, are the latest fad, and many people use them because they feel they have to; but when used improperly, the result is ineffective.

Afraid of Change

People are afraid of change because they are scared of the perception of failure. We become comfortable with our everyday habits, and the idea of switching things up makes people cringe. Technology is always changing and

Cloud Services to Check Out....

Belowaretwoservicesbesidesthecurrentkingofcloudstorage,Dropbox.

Google Drive

MuchlikeDropboxandothercloudcomputingsoftware,GoogleDriveisthenewestserviceinthefield.LaunchedinlateApril2012,thisserviceprovides5GBofstorageforfreeandallowsyoutoconnectviaPC,MacandAndroiddevices,andiPhoneandiPad(comingsoon).

www.Drive.Google.com

Microsoft SkyDrive

ThenewlyupdatedservicethatwasonceeasyforPC/AndroidusersisnowMacandiPhone/iPad-friendly.ThiscloudstorageoptionallowsyoutodothesameasDropboxandGoogleDrive,howevertheirfreeservicestartsat7GB.Filesupto2GBcanbedraggedanddroppedintoanydriveandanyfolderjustlikeyouwouldonyourhomecomputer.

www.SkyDrive.com


12 COMMON TEChNOLOgy MISTAkES ANd hOW TO AvOId ThEM

adapting to new ideas and functions. You need to be open to the changes and look for the benefits they bring, and not the fact that something is different. Every change made to a service, product, app or device is with the intent of making the specific item better. Sometimes companies fail at that, but most times there is an enhancement. Every time that Facebook makes a change, for example, the news feed is flooded with friends complaining about the difference. They fail to forget it is a free service, and that each and every enhancement is with a goal in mind.

Improper Response Method

At times we become creatures of habit, but when communicating to prospective clients, we need to adapt to their method of communication. For example, if a client e-mails you, it is expected that the response would be via e-mail as well, unless noted otherwise. Also, texting is not considered e-mail. I’ve found it a bit interesting when a client texts me with a question. Texting is meant for more of a personal touch, unless the client texted you first. If they call you, you follow up with a phone call. Let the client decide what method of communication they prefer — not you.

Lack of Website Maintenance

Many small businesses invest a large amount of time and money in developing a beautiful website. But the problem is that the last time they paid any attention to it was the day they launched it. Think of your website as your lawn: you need to mow it

weekly, add fertilizer a few times a year, and sprinkle a little grass seed every now and then to make it look beautiful. Your website is not much different; it needs maintenance to keep it looking fresh and up-to-date. Make it a priority to spend time making updates or add money in your budget to have a professional do it for you. Your website and every other piece of marketing is how consumers perceive your business. If it appears unorganized and out-of-date, that is the way your prospective clients will feel about you.

Purchasing Extended Warranties

While purchasing an extended warranty may seem like a good idea at the time, it is generally proven that it is not worth it. Typically the price you pay for a warranty on a computer, TV or other large purchases actually covers the entire cost the retailer paid for that product. With that being said, each and every person is different. Some people are harsher on the products they use, and it might not be a bad idea to have extra coverage. Items that don’t do much travel, such and desktops or TVs, probably don’t need a warranty. Cell phones and cameras that are used on a daily basis should have coverage only if it includes water damage.

Failing to Back Up

It is important to always back up your files on your computer or any added drives. Not only for IRS purposes, but for ease of mind, take the proper steps to back up everything. Many businesses fail to take the simple procedures of doing this and

it ends up biting them in the end. Storage space is not an issue, and Apple and Microsoft make it easy to set up a schedule that will automatically back up every single file while you are sleeping. Keep in mind that data recovery is possible; however it can be painful and expensive.

Too Much Travel Time

Let’s face it — gas is not cheap these days. Even though we feel that face-to-face meetings are important, thanks to video conferencing services such as Citrix or even Skype, certain meetings are possible while staying at the office. Telecommuting can also save you trips into the office and provide a working environment that may actually be more productive. As a REALTOR®, your schedule can be hectic at times, and these tools will help free up time in your busy day if you take advantage of them.

Throwing Old Technology in the Garbage

I may be a stickler for being green, but you can’t just simply toss your old cell phone or printer in the trash when you are finished with it. Each item contains hazardous material that needs to be properly disposed or can damage the environment. Instead, consider spending a few minutes to polish and resell your old tech item. A few minutes on Ebay or Craigslist can save you a few bucks in disposing fees and put a little back in your pocket. Just because you don’t want your old monitor doesn’t mean someone else doesn’t.

TECh hOTTIPS

Lookingformoretechnologytipsandhow-to’s?CheckouttheWRA’sTechHottipstofindallsortsofinformationonvarioustopics.

www.TechHottips.com

“Think of Social Media as a cocktail party, but without the constraints of time or space. Compared to a cocktail party, the social media environment is more public and easier for people to listen in. The goal with any social event is to meet people and start conversations.”


Not Using Social Media

Think of Social Media as a cocktail party, but without the constraints of time or space. Compared to a cocktail party, the social media environment is more public and easier for people to listen in. The goal with any social event is to meet people and start conversations. You as the REALTOR® are viewed as the professional and should be adding value to any conversation. Be helpful, answer questions and in return ask questions and trust others’ advice. Facebook and Twitter are excellent for building an online presence. Keep in mind these four main goals with social media: 1) Be Found, 2) Connect and Engage, 3) Create a Community, and 4) Promote Content.

No Security

One of the most important tools you do your work on is your desktop, laptop or smartphone. It is your lifeline, and failing

to take the proper steps to prevent viruses, spam or theft is just lazy. McAfee and Norton provide anti-virus software and Internet security. Along with protecting your computer, you need to take the proper steps to secure your smartphone. Your smartphone carries more sensitive data and it is crucial to have it password-protected in case it ends up in the wrong hands. iPhone and Android both have apps available that will locate your phone via GPS in case it is ever stolen.

Have a specific topic or question you would like to be discussed in the future? Please send your inquires to Joe Leschisin at [email protected].

Joe Leschisin is the Senior Designer for the Wisconsin REALTORS® Association. In 2011, he was named to In Business Magazine’s “40 Under 40” List. His graphic design and Web development has been recognized with multiple awards on a local and national level.

WRA MOBILE WEBSITE

Coming May 2012!

Laterthismonth,theWisconsinREALTORS®Associationwillbelaunchingtheall-newmobilewebsite.Thesitewillmakeiteasierformemberstoaccessinformationandregisterforcoursesandeventsrightfromtheirfingertips.

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legal

tick tock Calculating Deadlines in the Offer to Purchase

Over the course of the last few years, one consistent conversation has revolved around calculation

of dates and deadlines in the Offer to Purchase. While the majority of deadlines in the preprinted state-approved offers run from acceptance, some are calculated from date of the offer, date of closing and also vary depending on hours, days and business days.

All of the revised offers to purchase include the same definition of Deadlines. However, the parties may agree to modify the terms of the contract, including altering the preprinted deadlines in the offer. For example, the parties may agree that deadlines will run from binding acceptance, or a specific event such as lender approval. The parties may also modify the deadline provision to include all state and federal holidays when calculating business days or to provide that a deadline expires at 9:00 p.m. rather than midnight of the last day in the time frame. Whatever the agreement, the parties and the agents need to have a clear understanding of how to calculate and determine when deadlines begin to run and when deadlines expire.

“‘Deadlines’ expressed as a number of ‘days’ from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day. Deadlines expressed as a specific number of

“hours” from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day.”

Calculation of Deadlines

Typically, the easiest way to illustrate the calculation of deadlines is with an example. Such as, the buyers inserted 10 days on line 421 of the Inspection Contingency in the WB-11 Residential Offer to Purchase. The offer was signed and dated by the sellers as “accepted” on Thursday, but was not

delivered until Friday morning. How are the 10 days counted?

Per line 421, unless modified, the deadline of the Home Inspection Contingency is measured from the date of acceptance. Thus, the home inspection deadline is counted or calculated from the date the offer is accepted, that is, the date when all parties have signed the offer. Lines 174-181 provide guidance concerning counting of days.

“Acceptance occurs when all Buyers and Sellers have signed an identical copy of the Offer, including signatures on separate but identical copies of the Offer.”

ByCorilamont


Therefore, from the facts provided, acceptance occurred when the sellers signed on Thursday. Thus we begin counting Friday as day one, Saturday – two, Sunday – three, Monday – four, Tuesday – five, Wednesday – six, Thursday – seven, Friday – eight, Saturday – nine and Sunday as day ten. The inspection contingency deadline would expire on the second Sunday at midnight.

Different Time Frames

Date of this offer

While the majority of deadlines run from the date of acceptance, including those for earnest money, the Financing Contingency, the Appraisal Contingency and the Inspection Contingency, there are some provisions in the offer that run from a different event. For example, the timing in the Special Assessment/Other Expenses provision is one of the most unique in the offer.

Special assessments, if any, levied or for work actually commenced prior to the date of this Offer shall be paid by Seller no later than closing. All other special assessments shall be paid by Buyer.

This provision is the only one in the preprinted offer that hinges on the date of the offer as opposed to events such as acceptance or closing and is often overlooked because it is typically on an offer page that

does not include any blank lines. Thus if the special assessment was levied the day after the offer, the buyer would be on the hook for the expense.

Days before closing

Another hidden treasure for timing is provided in the Title Evidence section, specifically the Provision of Merchantable Title. For purposes of closing, title evidence shall be acceptable if the required title insurance commitment is delivered to Buyer’s attorney or Buyer not less than 5 business days before closing… In these situations, we calculate out from closing as opposed to after acceptance. Keep in mind that not all offers are created equally as the Vacant Land, Farm and Commercial offers express this specific deadline as from days of acceptance, which means it runs earlier in the transaction.

Days vs. Business Days

Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and any other day designated by the President such that the postal service does not receive registered mail or make regular deliveries on that day.

There is often an impression that days and business days are interchangeable, and that is incorrect. The definition of Deadlines specifically makes a distinction between

the two because a four-day deadline is shorter than a four-business-day deadline. The majority of deadlines in the offer are expressed as days, however in addition to the merchantable title in the real estate condition report provision, the right to rescind is statutorily two business days. Another example of the use of business days in an offer to purchase is provided in the WB-14 Residential Condominium Offer to Purchase and condominium law; the statutory language provides a buyer’s right to rescind of five business days.

The simplest way to remember the distinction between days and business days is that “days” run Monday through Sunday, while “business days” run Monday through Friday and exclude holidays and other noted exceptions.

Hours

Deadlines expressed as a specific number of “hours” from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day.

The offers also include at least one reference to a deadline that utilizes hours. The Closing of Buyer’s Property Contingency provides, within _____ hours of Buyer’s Actual Receipt of said notice … There is not currently any other contingency or provision preprinted in the


offer that includes an hour deadline. Agents should also note the use of Actual Receipt in this provision.

“Actual Receipt” means that a Party, not the Party’s recipient for delivery, if any, has the document or written notice physically in the Party’s possession, regardless of the method of delivery.

Once the buyer has the bump notice, not the agent, the clock begins to run hour by hour, 24 hours per calendar day. Therefore it more likely than not that a 72-hour deadline will run out faster than a three-day deadline.

Time Is of the Essence

If “Time Is of the Essence” applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. If “Time Is of the Essence” does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs.

Under general contract law, a deadline in a contract for which time is NOT made of the essence does not have to be complied with precisely on the DATE (or time) indicated. The courts will say that, if given the circumstances of the contract, performance was reasonably close in time, it will not be a breach of contract to have missed the deadline. If time is made of the essence as to a particular deadline, failure to perform by the precise moment of the deadline will be a breach of contract. Immediately thereafter the party awaiting performance can give notice that the contract has been cancelled due to the breach of contract.

If a non-“time is of the essence” deadline is missed by a party, the other waiting party may unilaterally notify the non-performing party that performance must occur by the end of a stated “reasonable” time period for which time is of the essence. This reasonable time period should be stated in a written notice along with the statements that the new deadline is “time is of the essence” and that contract will be void if the new

deadline is not met exactly. Parties should be referred to legal counsel should they wish to establish a “time is of the essence” deadline after the passing of a non-time is of the essence deadline in this manner.

If the seller will not meet the “reasonable time” closing deadline, the buyer should work with legal counsel. Buyer’s rights may depend upon a variety of technical legal principles such as election of remedies and requirements that buyer demand seller performance and demonstrate buyer’s intent and ability to close.

Agents are responsible for keeping track of the dates and deadlines for consumers and should be mindful of what needs to occur and by what day. In addition, agents should feel confident on how to determine and calculate when the provision or contingency deadline expires.

Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.

“Agents are responsible for keeping track of the dates and deadlines for consumers and

should be mindful of what needs to occur and by what day. In addition, agents should feel

confident on how to determine and calculate when the provision or contingency deadline expires.”


best of the legal hotline

Single Buyer/Married Seller

The seller married since she bought the property and the couple lives in the home. She listed the home and does not want her husband’s signature on any of the documents for listing or selling the property. The cooperating broker working with the buyer wants the husband to sign the offer. Must the husband sign the offer?

The listing contract must be signed by someone agreeing to pay the commission. The law does not require that all owners sign a listing contract in order for the listing contract to be enforceable against the owner who does sign. Therefore, technically a wife signing a listing can be liable for a commission to a broker who successfully procures a buyer. Prior to accepting a listing signed by one spouse, counsel may be consulted regarding the myriad of potential problems, including disclosure duties owed to prospective purchasers, homestead law, marital property law, and agency disclosures to the seller client and the seller customer.

In Wisconsin, Wis. Stat. § 706.02 provides that both spouses must sign all documents conveying an interest in any homestead property, including the Offer to Purchase and the deed or land contract. Generally speaking, a “homestead” is the home or dwelling of a married person. The definition is intended to be broad and covers a property as long as one or both of the spouses lives there. The brokers may work together, and with the title company, to determine the status of the property and whether or not it is homestead requiring all signatures.

Sibling Sellers

A broker is going to list a home that is owned by three siblings. They live all over the country. Must all three sign the listing contract? Must all three sign the same offer?

As previously discussed, the listing contract must be signed by someone agreeing to pay a commission. The law does not require that all the owners sign a listing contract in order for the listing contract to be enforceable against the owner who does sign. The broker may be cautious about proceeding without the signature of all owners because if all sellers are not in agreement to the listing, they may not agree to the sale.

For the offer, acceptance must be in writing to satisfy the Wis. Stat. § 706.02 requirements for a written contract conveying an interest in real estate. Wis. Stat. § 706.02 requires that a real estate conveyance document, such as an offer to purchase, must identify the parties and be signed by or on behalf of all the parties to create a binding contract.

Given the sellers are in different locations, the broker and parties may use counterparts to obtain a fully executed offer. As indicated on lines 23-24 of the WB-11, “Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identical copies of the Offer.” This provision specifically allows for the use of counterparts, which is helpful, for example, when there are parties living in different states. Wisconsin case law recognizes that contracts may be signed in counterparts — that

Questions and Answers Relating to Signatures with tracy rucka


hotline highlights cont’d

is, no one piece of paper has all the original signatures, but taken together, all parties have executed a copy of the same contract. It is the assent of the parties to the same terms and conditions that makes a contract. When counterparts are being used, it is prudent to include a statement in the offer explaining that the contract is being executed by the buyers and sellers in counterparts, which are multiple copies of the same offer.

Marital Property

If a buyer is trying to purchase a home, but her divorce is not final yet, can she purchase a home without the soon-to-be ex-husband’s approval and name on the contract?

Although, as a general rule, married persons may purchase property and take title in one of the spouse’s names alone, this buyer’s situation and divorce may impose limitations on the purchase of real property. Often preliminary orders in a divorce prohibit both spouses from entering into any significant economic obligations during the pending divorce. The broker should refer the buyer to consult with her divorce attorney to determine how best to proceed with any transaction in light of the pending divorce and her particular circumstances.

Brokers Signing

As the agent of the seller under a listing contract or the agent of the buyer pursuant to a Buyer Agency Agreement, can a licensee sign contracts and documents on behalf of the client? What is the proper form for signing on behalf of another?

Unless the broker or agent has actual authority, that is, a Power of Attorney (POA), he or she may not sign for the buyer. The standard listing contract and the buyer agreement forms approved by the Real Estate Examining Board for use by Wisconsin licensees do not provide such an authorization. A licensee signing transaction documents for a party without proper written authorization risks discipline and sanction by the Real Estate Examining Board.

Wis. Stat. § 706.03 states that an agent must be expressly authorized to sign on behalf of a principal — such as a POA. Further, the law provides that the burden of proving the authorization is on the agent. When actually executing real estate documents under a POA, the agent signing on behalf of the principal must comply with Wis. Stat. § 706.03(1m), and state the name of the authorizing principal. It is also recommended that the agent indicate his or her authority or capacity, as illustrated in the following examples: “Seller XYZ By: (agent signs name)(Print or type name), authorized attorney-in-fact” -OR- “(attorney-in-fact signs name)(Print or type name), as authorized agent on behalf of Buyer ABC.”

An agent in Wisconsin who signs an offer as “agent for unidentified principal” or otherwise does not disclose the principal in the contract risks being held personally liable on the contract. In other words, if

the principal/buyer skips to Rio, the agent becomes the new owner of the property.

Boyfriend/Girlfriend

The selling agent allowed the girlfriend to sign the counter-offer on behalf of herself and her boyfriend, who are both named as buyers in the Offer to Purchase. It is unclear whether or not there was an appropriate expressed authorization, as required under Wis. Stat. § 706.03(1m), from the boyfriend to the girlfriend; it appears that there was at least verbal consent. Now the boyfriend no longer wants to buy the property and he is asserting that he never signed the counter-offer. The agent did not disclose to the listing agent that there may not have been proper authorization for the girlfriend to sign on behalf of the boyfriend. The sellers are currently considering their potential options against the buyers. What is the agent’s potential exposure? Would it matter if they were married?

It may be prudent for the agent to consult with his or her broker and legal counsel. Authority to sign for another should be given in writing, preferably notarized, with the fullest, most detailed as


possible instructions from the party authorizing it. In executing documents, the signing party should comply with § 706.03(1m), which provides that the party’s name — in this case, the boyfriend’s name — appear with an indication of the authority of the signing party — here, the girlfriend — such as “(name of boyfriend) by (name of girlfriend), as authorized agent” or “(name of girlfriend) as agent on behalf of name of boyfriend.” Whenever someone signs on behalf of another, care must be taken to establish the authority of the person who is signing to do so. The fact that the parties were married rather than single would not change the outcome. Spouses do not have automatic authority to sign for each other.

Limited Liability Companies

Does an LLC member have the right to sell a property owned by the LLC?

With an LLC, the authority to transfer its property depends on whether the LLC is member-managed or centrally managed.

In a member-managed LLC, Wis. Stat. § 183.0301 provides that each member is an agent of the LLC. A member may sign documents and bind the LLC if the member is apparently carrying on the ordinary course of business for the LLC, unless the member has no authority to act and the person he is dealing with is aware of his lack of authority. Under § 183.0702, the property of the LLC that is held in the name of the LLC may be transferred by a conveyance executed by any member in the name of the LLC.

If one or more managers centrally manage the LLC, a member is not an agent of the LLC and cannot bind the LLC. Rather, each manager is an agent of the LLC and can execute documents and bind the LLC per § 183.0301. If there are one or more managers, property that is held in the name of the LLC may be transferred only by a conveyance executed by a manager in the name of the LLC; LLC members will have no authority to transfer title.

When dealing with an LLC, it may be wise to ask for the LLC’s operating agreement and/or other affirmative representations confirming a member’s or a manager’s authority to bind the LLC and to sell the real estate on behalf of the LLC.

Life Estate Sales

The accepted offer is signed by seller Jane Smith who is living in the house. The broker did not do a search and hold on title when listing the property. After the offer was accepted by Jane, the title commitment came back with the following: “Jane Smith, life estate and Power of Appointment and remainder interest to, Ronald Smith, Ted Smith and Cary Smith, as tenants in common.” Is the offer valid just with the signature of Jane Smith, or must all parties sign the offer to purchase?

It appears that Ronald, Ted and Cary Smith together hold the remainder interest in the property with Jane Smith having a life estate. Someone who has a life estate interest is not a legal owner of the property; however, she has the right to live in the property until her death. All owners of the property, both the person with the life estate and the remaindermen must sign the Offer to Purchase in order to create a valid real estate conveyance to sell the property in fee simple absolute per Wis. Stat. § 706.02. If, however, all that is being sold is Jane Smith’s life estate, then Jane may sell that interest independent of the consent of the remaindermen. In such a situation, the buyer would have the right to occupy the property only until Jane’s death.

Tracy Rucka is Director of Professional Standards and Practices for the WRA.

Resources:

For further discussion concerning signatures and power of attorney, see Legal Update 04.05, “Avoiding Liability When Signing and Making Referrals,” at www.wra.org/LU0405, and Legal Update 06.09, “Contract Law Basics” at www.wra.org/LU0609.

For further information regarding life estates, see page 8 of the June 2007 Legal Update, “Ownership and Title Pointers for Brokers” at www.wra.org/LU0706.

“Whenever someone signs on behalf of another, care must be taken to establish the authority of the person who is signing to do so.”


Landlord-tenant Law: new check-In sheets & Property Disposal Procedure

Several important changes were made to landlord-tenant law at the end of the 2011-12 legislative session that will cause a few significant changes to the way landlords and

property managers interact with tenants.

Does It Really Say that?

From the flurry of amendments to 2011 Senate Bill 466 near the end of the legislative session emerged 2011 Wis. Act 143, which makes numerous changes to landlord-tenant law, primarily in Wis. Stat. chapter 704. Any time there is new legislation, there will be commentary and speculation over how the new provisions will be interpreted and applied because rarely does any legislation contemplate every possible situation or anticipate each possible wrinkle. But Act 143 has drawn a fair share of immediate attention. One reason is the subject: landlord-tenant law. The landlords have one perspective and tenants have another — that is to be expected. Another reason is the timing: SB 466 was signed into law March 21, 2012 and became effective March 31, 2012. There was little time to evaluate the new provisions before it was time to start taking action.

There are some differences of opinion over how to read and apply a few of the new provisions. Only time will tell how the perplexing

provisions are sorted out. The courts may be called upon to decipher the new statutes as they resolve landlord-tenant disputes. Maybe the legislature will be called back into action to clear the air with a trailer bill that smoothes out any rough edges.

In the meantime, the major revisions to Wis. Stat. chapter 704 address the following issues:

The Stuff They Leave Behind

Landlords and property managers have been happy to hear that they will no longer have to store personal property left behind by tenants when they move out or otherwise vacate the premises. Wis. Stat. § 704.05(5) has been overhauled and now provides that landlords may presume that property that the tenants leave behind is abandoned and may dispose of it in any manner that the landlord believes to be appropriate, if and only if, the landlord first has provided written notice to the tenant. This written notice must be provided to the tenant when the tenant enters into or renews a rental agreement and must indicate that the landlord will not store any personal property the tenant leaves behind.

ByDEBBiConraD


The landlord may dispose of “stuff” left behind by placing it in the dumpster, or the landlord can sell it or find another appropriate disposal method. The landlord can dispose of property left on the premises regardless of whether it is owned by the tenant or someone else. The tenant or any secured party has the right to redeem the property at any time before the landlord has disposed of it, or entered into a contract for its disposition, by payment of any expenses that the landlord has incurred with respect to the disposition of the property.

There are two exceptions to the general rules, one for medical items and one for manufactured homes, mobile homes and titled vehicles. With regard to medical items, the revamped § 704.05(5) indicates that if a tenant leaves prescription medicine or prescription medical equipment behind, the landlord must hold those items for at least seven days after the landlord discovers those items and must promptly return them upon the tenant’s request. If the property left behind is a manufactured home, mobile home or a vehicle of some sort — such as cars, boats, snowmobiles or mopeds — the landlord must give notice before selling it or otherwise disposing of it. Notice must be given to the tenant, and to any secured party that the landlord has actual knowledge of, by regular or certified mail to the last known address.

Action required: Landlord must give written notice when the tenant enters into or renews a rental agreement. Applies to/effective date: Rental agreements entered into or renewed on or after March 31, 2012.

Check-In Sheets

The new § 704.08 requires a landlord to provide a new residential tenant with a check-in sheet. The tenant will have seven days from the date the tenant commences occupancy to complete and return it to the landlord. This already is a common practice for many landlords and property managers and now it is a statewide requirement. But § 704.08 also says that this “standardized information check-in sheet” that the landlord must provide

when the tenant commences occupancy “contains an itemized description of the condition of the premises at the time of check−in.” This appears to require something new: the landlord is to provide a description of the condition the premises at the time the tenant checks in. In other words, this information check-in sheet would be completed by the landlord in some fashion to describe what the condition of the premises was at check-in time, and may be completed by the tenant after the tenant commences occupancy, presumably to make additional comments about the condition of the rental unit and indicate if any description provided by the landlord does not appear to be accurate.

Action required: When the tenant begins occupancy, the landlord must provide the tenant with an information check-in sheet describing the condition of the premises.Applies to/effective date: Tenancies beginning on or after March 31, 2012.

What One Hand Giveth, the Other Taketh Away

The new § 704.02 says that if any provision in a rental agreement is found to be invalid or unenforceable, the rest of the agreement is still in force. This was an apparent response to the Baierl v. McTaggart case (2001 WI 107). There, the Wisconsin Supreme Court held that a landlord who includes a provision specifically prohibited by Wis. Admin. Code § ATCP 134.08(3) in a residential lease may not enforce that lease.

This seems straightforward enough, until you see the new additions to § 704.44 that now is entitled “Residential rental agreement that contains certain provisions is void.” The seven prohibited rental agreement provisions listed in Wis. Admin. Code § ATCP 134.08, referred to as the “Seven Deadly Sins,” now also appear in § 704.44. So what does this mean? A rental agreement that includes a provision included in this list — that now appears in two places — will be void. For example, a lease that says the tenant can be evicted by changing the locks or that the tenant must pay the landlord’s attorney’s fees if the parties have a legal dispute is null and void.

“The landlord may dispose of “stuff” left behind by placing it in the dumpster, or the landlord can sell it or find another appropriate disposal method. The landlord can dispose of property left on the premises regardless of whether it is owned by the tenant or someone else.”


In § 704.44 there actually is an eighth Deadly Sin added to the list. A rental agreement is void and unenforceable if it “allows the landlord to terminate the tenancy of a tenant if a crime is committed in or on the rental property, even if the tenant could not reasonably have prevented the crime.” This appears to say that landlords cannot have rental agreement provisions that say the agreement is terminated if a crime is committed on the premises. It is not clear what impact, if any, the tenant’s ability to prevent the crime has in this provision as written.

Action required: Make sure that none of the items in § 704.44 are in any rental agreements entered into or renewed on or after March 31, 2012.Applies to/effective date: Rental agreements entered into or renewed on or after March 31, 2012.

Transplants from ATCP 134

Several provisions that appear in Wis. Admin. Code chapter ATCP 134 have been added to the statutes. Most of the provisions are substantially similar, but there have been a few modifications in some cases that change applicable law.

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• Security Deposits: There are provisions listing the reasons for which a landlord may withhold amounts from a tenant’s security deposit and establishing the timing for the return of the security deposit in Wis. Admin. Code § ATCP 134.06(2)-(3). These provisions now also appear in similar language in the new § 704.28. One substantive change of note appears in the new § 704.28(4)(b): if a tenant vacates before the rental agreement termination date, the 21 days for the return of the security deposit begins on the termination date or on the date the landlord re-rents the premises, whichever comes first.

• Disclosure of Code Violations: The new § 704.07(2)(bm) says that landlords must disclose uncorrected building or housing code violations actually known to the landlord that affect the dwelling unit — or associated common area — being rented and that present a significant threat to the tenant’s health or safety. The disclosure must occur before any earnest money or security deposit is accepted from a tenant. This is narrower than the similar provision in § ATCP 134.04(2)(a) that requires the landlord to show the tenant the violation notices or orders for all uncorrected building and housing code violations impacting the premises.

• Remedies for Violations: The new § 704.95 says that “Practices in violation of this chapter may also constitute unfair methods of competition or unfair trade practices under s. 100.20.” This may mean that a practice that violates a provision in chapter 704 of the statutes may be enforced under the unfair methods of competition and trade practices statute. That would mean double damages and reasonable attorney’s fees for a party suffering pecuniary loss.

Action required: Avoid any violations of chapter 704 because there is a risk of double damages plus attorney’s fees per § 704.95 Applies to/effective date: March 31, 2012.

WRA Forms

The WRA is in the process of updating its forms to comply with the new landlord-tenant law changes. Addenda for the WRA Residential Lease and Residential Rental Contract have been created and made available for those entering into new agreements on or after March 31, 2012. These are available at www.wra.org/Rental and on ZipForm®. The WRA also will revamp the WRA Move-In/Move-Out Report and make revisions to the Rental Disclosure Form and Nonstandard Rental Provisions form — watch for information regarding availability.

2011 Wis. Act 143 may be reviewed at docs.legis.wisconsin.gov/2011/related/acts/143 and the updated chapter 704 is found at docs.legis.wisconsin.gov/statutes/statutes/704.pdf. All of these changes apply to commercial as well as residential leases, except for the Seven (Eight) Deadly Sins in § 704.44.

Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.

on DeManDanywHere. anytIMe.

21/course

$AS low AS

with member 6-pack pricing

reAl eStAtecontInuIng eDucatIon

The Wisconsin REALTORS® Association (WRA) is Wisconsin’s #1 choice for real estate education. With four convenient options, you can complete your 2011-2012 continuing education requirements with ease! Our Distance Learning On Demand gives you the autonomy to take courses on your schedule and at your own pace — anywhere and anytime.

1-800-279-1972www.wra.org/ceondemand

four ways to coMPLete your requIreD contInuIng eDucatIon

1. on DemAnDSix-Pack DiscountThe six-pack option allows you to take the four mandatory classes and two elective courses of your choice for only $126. ($21 per course)

Four-Pack DiscountChoose any combination of the mandatory and elective courses for only $92. ($23 per course)

Individual CoursesChoose any single course for the low price of $27/course. Commercial CE courses can be purchased individually as well.

For complete details, visit

www.wra.org/ceondemand

2. lIVeIf you enjoy classroom participation, the WRA’s live courses are just for you! The WRA hosts CE courses throughout the state at various dates and times taught by Wisconsin’s finest instructors. Schedule a class now! For a list of courses offered in your area, visit www.wra.org/liveCe.

3. Booklet / onlIne exAmThe WRA’s comprehensive, easy-to-follow self-study booklets allow you to complete your CE at your own pace and on your own schedule. You can then take the corresponding exam online when you are ready. Courses 1, 2, 3 and 4 as well as Electives A, B, C and D are available in this handy format. $27/course/member www.wra.org/BookletCe

4. DVD / onlIne exAmComplete CE in the comfort of your own home with the WRA’s DVD option. Watch the CE class on DVD, follow along with the outline, then take the corresponding exam online. All 2011-2012 CE courses are available through this program. $27/course/member www.wra.org/DVDCe

CommerCIAl CeThe WRA’s commercial-centric CE courses are designed specifically for those who practice in the commercial real estate world, available in classroom or On Demand. www.wra.org/Commercial

All pricing listed above is for Wisconsin REALTORS® Association members only. Non-member pricing is based on a different scale. 4- and 6-Pack pricing only available for On Demand. Commercial CE courses not offered in On Demand 4- and 6-Pack Options. Sold only as individual courses.


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Lookingforinformationonhowtomostefficientlyutilizetechnologyinyourrealestatebusiness,butyouriPad,Kindle,orNookbatteryisdead?Areyoureyesstrainedfromstaringatacomputerscreenforhoursonend?Consideragoodold-fashionedpaperbackbookfromtheWRAlibrary!ManyofthepublicationsintheWRA’sinventorycontainasectionontechnology.Herearesomesuggestions.

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Real Estate Technologycoversavarietyoftechnologytools,includingsmartphones,andoffersapplicationtipsonblogs,podcastsandothermarketingideastohelprealestateprofessionalsusecurrenttechnologyintheirbusiness.Brokerswillalsofindanadditionalchapterforusingtechnologywithintheirofficestorecruitandretainmoreagents.www.wra.org/pub164.

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New Product Announcement!

TheWRA’szipForm®6ClauseLibraryisnowavailable!ThezipForm®6ClauseLibraryistheelectronicversionof2012 Wisconsin Real Estate Clauses.Thisisthego-toresourcefordraftingideaswhenstandardformsneedtobemodifiedtoreflecttheintentoftheparties.The2012editionaddsnewclausesandrevisesmanyclausesthatappearedinthepreviousedition.PurchasetheClauseLibrarydirectlythroughyourzipForm®6account.DownloadablePDFinstructionscanbefoundonourwebsiteatwww.wra.org/zipform,www.wra.org/zipClauseStandardorwww.wra.org/zipClausePro.

InadditiontotheelectronicversionavailablethroughzipForm®,2012 Wisconsin Real Estate Clausesisavailableasapaperbackbook,whichisgreatforusewhenyoudon’thaveaccesstoacomputerorarehandwritingapaperform.Coverallyourbasesbyhavingbothonhandforreference!Visitwww.wra.org/PUB280formore.

Nichole Mickelson is the Business Services Assistant for the WRA and oversees numerous WRA products.

ByniCholEmiCkElson

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www.wra.org/convention

SePtemBer 9-11, 2012 | rADISSon PAPer VAlley hotel - APPleton

Sunday

8:30 a.m. – 12:00 p.m. Real Estate CE – Course 1 – Listing Contracts

9:30 a.m. – 4:00 p.m. Golf at Butte des Morts Country Club

11:30 p.m. – 3:00 p.m. Real Estate Bar Camp

1:00 p.m. – 4:30 p.m. Real Estate CE – Course 2 – Offer to Purchase

4:00 p.m. – 6:00 p.m. Exhibits Open

8:30 p.m. – 1:00 a.m. Icebreaker Party “Connections Carnival”

September 9

8:00 a.m. – 5:00 p.m. Exhibits Open

8:30 a.m. – 12:00 p.m. Real Estate CE – Course 3 - New Developments

9:30 a.m. – 11:30 a.m. Opening Session - Become the Change You Wish to See in the World

1:00 p.m. – 4:30 p.m. Real Estate CE – Course 4 Business Ethics

1:00 p.m. – 2:30 p.m. Workshops - Session 1


7:00 p.m. – 9:00 p.m. Chairman’s Installation Dinner

9:00 p.m. – 12:00 a.m. The After Party

MondaySeptember 10

8:00 a.m. Exhibits Open

8:30 a.m. – 12:00 p.m. Real Estate CE – Elective A – Short Sales and Foreclosures

8:30 a.m. – 4:30 p.m. Appraisal CE - UAD: Coping with the Aftereffects

8:45 a.m. – 10:00 a.m. General Session: NetWORTHingTM ... The New Social Economy

10:30 a.m. – 11:45 a.m. Workshops - Session 1

1:00 p.m. – 4:30 p.m. Real Estate CE - Elective D – Financing



tueSdaySeptember 11

Conventionistheperfectplacetonetworkwithcolleagues,getrechargedaboutyourbusiness,completeContinuingEducationcoursesorchoosefrommorethan40workshopsacrossthreedays.Whetheryouarelookingfornewideas,marketingtips,salesstrategiesoraprimeronnewtechnology,there’ssomethingforeveryone.


education

Mission: Convention Photo ContestLike photography? Like Wisconsin? Don’t miss your chance to win!WewanttoseeWisconsinthroughyourlens.EnteryourphotographsthatcaptureWisconsinlifeintheWRA’sConventionPhotoContestforyourchancetowinprizesandreceivephotocreditinfutureissuesofWisconsinRealEstateMagazineaswellasotherWRAmedia.ContestantsmustbecurrentWRAREALTOR®membersoraffiliatememberswithaknackforphotography.

Enterphotosinanyofourcategories—parksandrecreation;artsandculture;outdoorsandnaturalattractions;traveldestinations;sportsandcommunityevents;andorchardsandmarkets—andcompetetowinprizes!Reviewtheofficialcontestrulesanddetailstobefullypreparedandreadytocompete.

ThecontestisopenMay1,2012throughAugust10,2012.CommunityjudgingwilltakeplacestartingMay1,2012ontheWRAconventionwebsiteandwillcontinueduringthedurationofthecontest.First,secondandthirdplacewinnerswillbeannouncedattheWRA’sAnnualConventionattheOpeningSessiononMonday,September10,2012,inAppleton!

Grabyourgearandgetoutdoors!

Forofficialcontestrulesanddetails,visitwww.wra.org/ConventionPhotoContest.

RE BarCamp Returns to 2012 Annual WRA ConventionRE BarCamp is back!

REBarCampwillreturnonceagaintotheWRA’sAnnualConventioninSeptember2012.

Oftendescribedasan“informalgatheringoflike-mindedpeople,”REALTORS®gatheratREBarCamptodiscusshowtechnology,socialmediaandotheremergingtrendscanbenefityouasaREALTOR®.

WhilemanybreakoutsessiontopicswillbedecidedthedayofBarCampbytheattendees,anewfeaturethisyearalsowillallowBarCampattendeestosubmitdiscussiontopicsinadvance.Withtheabilitytoviewpre-selectedtopics,makesuretocomepreparedtoshare!

REBarCampwillbeheldonthefirstdayoftheconvention,September9,at11:30a.m.beforethePackersgame.Markyourcalendarnow,andstaytunedforcompletedetailsontheWRAconventionwebsite!

www.wra.org/ConventionCamp

reW I S CO N S I N

re

WRA Annual Convention I September 9–11, 2012 I Appleton


Course Schedule

Visit www.wra.org/CourseSchedule for full schedule.

Sales & Marketing Management* date course location **early regular a.t.d.

November 1–2, 2012 CRS 202* Milwaukee $250 $260 $280

conference and conventions date event/course location

September 9–11, 2012 WRA Annual Convention Radisson Paper valley hotel in Appleton

Real Estate Continuing Education Date course location Price

May 7, 2012 2011-12 Course 1 - dvd Manitowoc (920) 553–6227 May 7–11, 2012 2011-12 Electives A & B - dvd Mosinee (715) 693–7325 May 8, 2012 2011-12 Courses 1 & 2 - dvd Rhinelander (715) 356–3400 May 9, 2012 2011-12 Courses 4 Sheboygan (920) 457–7908 May 9, 2012 2011-12 Courses 4 & 3 Madison (800) 279–1972 $27/m; $35 nm May 9, 2012 2011-12 Courses 1 & 2 hayward (715) 835–0923 May 10, 2012 2011-12 Course 2 - dvd Manitowoc (920) 553–6227 May 10, 2012 2011-12 Courses 3 & 4 hayward (715) 835-–0923 May 10, 2012 2011-12 Courses 3 & 4 Sturgeon Bay (920) 743–9651 May 10, 2012 2011-12 Electives C & d Brookfield (800) 279–1972 $27/m; $35 nm May 10, 2012 2011-12 Courses 1 & 2 - dvd kenosha (262) 942–0592 May 11, 2012 2011-12 Courses 1 - dvd Manitowish Waters (715) 356–3400 May 15, 2012 2011-12 Course 3 - dvd Manitowoc (920) 553–6227 May 15, 2012 2011-12 courses 3 & 4 - dvd Rhinelander (715) 356–3400 May 16, 2012 2011-12 Electives A & B hayward (715) 835–0923 May 16, 2012 2011-12 Electives C & d Madison (800) 279–1972 $27/m; $35 nm May 18, 2012 2011-12 Courses 3 & 4 - dvd kenosha (262) 942–0592 May 21, 2012 2011-12 Course 4 - dvd Manitowoc (920) 553–6227 May 22, 2012 2011-12 Elective B - dvd Manitowoc (920) 553–6227 May 22, 2012 2011-12 Electives A & C - dvd Rhinelander (715) 356–3400 May 23, 2012 2011-12 Electives A & d - dvd kenosha (262) 942–0592 May 24, 2012 2011-12 Elective d - dvd Manitowoc (920) 553–6227 May 24, 2012 2011-12 Elective d - dvd kenosha (262) 942–0592 June 11, 2012 2011-12 Course 1 - dvd Manitowish Waters (715) 356–3400 June 25, 2012 2011-12 Course 2 - dvd Manitowish Waters (715) 356–3400 July 9, 2012 2011-12 Course 3 - dvd Manitowish Waters (715) 356–3400 July 23, 2012 2011-12 Course 4 - dvd Manitowish Waters (715) 356–3400 July 25, 2012 2011-12 Elective C Sheboygan (920) 457–7908 July 25, 2012 2011-12 Courses 1 & 2 Madison (800) 279–1972 $27/m; $35 nm August 1, 2012 2011-12 Course 1 & 2 Brookfield (800) 279–1972 $27/m; $35 nm August 2, 2012 2011-12 Course 3 & 4 Brookfield (800) 279–1972 $27/m; $35 August 6, 2012 2011-12 Elective A - dvd Manitowish Waters (715) 356–3400 August 8, 2012 2011-12 course 3 & 4 Madison (800) 279–1972 $27/m; $35 nm August 10, 2012 2011-12 Elective d & A Brookfield (800) 279–1972 $27/m; $35 nm August 15, 2012 2011-12 Elective d & A Madison (800) 279–1972 $27/m; $35 nm August 20, 2012 2011-12 Elective C - dvd Manitowish Waters (715) 356–3400 August 30, 2012 2011-12 CE 1 & 2 (Commercial) Milwaukee (800) 279–1972

Appraisal Continuing Education date course location

Setpember 11, 2012 UAd: Coping with the Aftereffects Appleton

Pre-License date course location member price non-member price October 1-5, 8-10, 2012 Sales Pre-license Course Madison $325* $335* * Plus books

Available online!

StartQuicksales training program

www.wra.org/QuickStartOnDemand

*Wisconsin CRS Members receive a $20 discount

2011-12 Electives: Elective A – Short Sales & Foreclosures Elective B – Environmental Matters Elective C – Other Approved Forms Elective d – Financing

The 2009-2010 real estate continuing education is still available through On Demand, DVD and Self-Study Booklets:Course 1 – Listing ContractsCourse 2 – Offer to PurchaseCourse 3 – New developmentsCourse 4 – Buyer Agency AgreementsElective A – Risk ReductionElective B – 1031 Exchanges and Exchange OpportunitiesElective C – CondominiumsElective d – Landlord/Tenant and Property ManagementElective E – Financing Elective F – Broker Supervision


BymarCusa.wally

realtor® sales tip

Housing touches many sectors of the American economy, accounting for more than 15 percent of the gross

domestic product, according to NAR. For every two homes sold, a job is created. New spending on building products, furniture, and other residential investments also have a huge economic impact.

So why the drop of people wanting to own a home?

The homeownership rate in the U.S. for the fourth quarter 2011 was 66 percent, which was lower than the fourth quarter 2010 rate of 66.5 percent.

The homeownership rates in the Northeast, Midwest, South and West were not statistically different from their corresponding fourth quarter 2010 rates, but a large reduction has occurred in the last 10 years. See the country’s homeownership rates below.

2001 68.0% 2006 68.9% 2002 68.3% 2007 67.8% 2002 68.3% 2008 67.5% 2003 68.3% 2009 67.2% 2004 69.2% 2010 66.5% 2005 69.0% 2011 66.0%

For potential homeowners, the decision to buy a home is one of the largest financial decisions they will ever make. Like many purchases, the decision may be driven by emotions. Buying offers tangible benefits, but also there are costs associated with owning a home. Let’s weigh them out.

By examining these options, we can give potential buyers a rational basis for making a housing decision, and history shows that real estate is one of the greatest hedges when it comes to inflation.

The largest measurable financial benefit to homeownership is price appreciation. Price appreciation helps build home equity, which is the difference between the market price of the house and the remaining mortgage payments. I always tell my team of brokers that you will not get rich selling real estate, but you can obtain financial freedom when you buy the product we sell to customers and clients.

One of our biggest challenges as professional REALTORS® is that the younger Americans have seen what homeownership has done to their friends and families, and many want no part of it. Credit has

become very nearly elitist. Home prices, whatever your particular data provider preference might be, are still falling. We are in challenging times!

Our goal must be to make sure we look at the glass half full ... always search for the sunshine as it is there! We must remind all whom we come in contact with that housing is shelter first and foremost, but under normal circumstances, is also a proven, sound long-term investment.

In February 2012, Warren Buffett stated that single-family homes are a very attractive investment right now. Appearing on CNBC, Buffett stated that he’d buy “a couple hundred thousand” single-family homes if it were practical to do so. If held for a long period and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.

Location, Location, Location

It is clear that where you live plays a large role in building home equity and wealth. Unfortunately, it is not always possible to decide where you live. Most importantly, past rates of home price appreciation are not necessarily an accurate indicator of future rates of home price appreciation. For most people, a high rate of home price appreciation should be considered good fortune. However, buyers should study demographic and economic trends in deciding where to purchase a home — this includes a local analysis within a certain geographical area — assuming that location is a choice.

Tax Benefits

The second largest financial benefit of owning a home is tax savings. For most Americans, there are tax savings associated with owning a home. The biggest of these is the ability to deduct the annual interest paid on a mortgage from income.

For example, an individual or family with a 30-year 7%, $400,000 mortgage would pay $4,063 in principal and $27,871 in interest in the first year of that mortgage. If they were in a 28% tax bracket, their tax savings would be $7,804 (.28 x 27,871 = 7,804). Private Mortgage Insurance (PMI) may also be tax deductible. Always advise every customer or client to seek the advice of a professional CPA, accountant and/or lawyer. We must never cross the line and give

advice in an area where we are not licensed and or skilled. This is a violation of our Code of Ethics and Wisconsin license law.

Home price appreciation is by far the most important variable in a homeownership Costs vs. Benefits analysis. It is wise to look for local trends and long-term averages. Intangible benefits, like peace of mind, pride of ownership and security, are important. They should be part of a homeownership decision, but don’t let emotions overrule a rational decision.

Homeownership provides a broad range of benefits to individual homeowners and to society as a whole:

• The children of homeowners do better in school and are more successful later in life.

• Homeownership acts as a powerful economic stimulus, benefiting the individual homeowner and the national economy.

• Homeownership benefits neighborhoods, providing economic and social capital. Homeowners are more likely to participate in local organizations, and homeownership in distressed communities raises neighborhood property values by a significant amount.

• Homeowners state that they are more satisfied with their living situation than renters.

Just the fact of owning my own home gives me a sense of peace and security that cannot be appreciated when you rent.

Buying a home generates a pride of ownership and commitment to community, which comes with achieving this key part of the American Dream. Combined, these factors contribute to the quality of life in communities across the country — inspiring our nation to be described as the “best-housed nation on earth”

Keep moving forward!

Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at (904) 669-1081 or by e-mail at [email protected].

the Benefits of Homeownership!


Dreamers WantedEveryone has a different dream of success. At Coldwell

Banker, we welcome them all. Whether your dream is a

record-breaking year of sales, or a career that lets you

work at your own pace, it’s up to you.

Every Dream Deserves a ChanceDreamBlueBlog.com • ColdwellBankerOnline.com


legislative

Bytomlarson

new Pier grandfathering Legislation signed Into Law

On April 2, 2012, Governor Walker signed into law 2011 Wisconsin Act 167, legislation that grandfathers almost all existing piers. In addition, the new law eliminates the pier

registration requirement and creates new standards for piers placed on or after April 17, 2012. Finally, the new law guarantees that waterfront property owners have a right to place a pier, even if the property is located in areas that the Wisconsin Department of Natural Resources (DNR) considers to be environmentally significant.

Background

In 2007, Wisconsin lawmakers enacted a law that attempted to grandfather 99 percent of the existing piers from DNR permitting requirements. (2007 Wisconsin Act 204.) To be eligible for grandfathering, a pier was required to meet the following standards: • The pier must have been originally placed prior to February 6, 2004.• The width of the pier could be no wider than eight feet. • A loading platform or deck was allowed as long as it is located at

the lakeward end of the pier and the platform had a surface area no greater than either (a) 200 square feet, which may be any width, or (b) 300 square feet, if the deck/platform is no wider than 10 feet.

In addition, the pier must have been registered with the DNR by April 1, 2011. The registration deadline was later changed to April 1, 2012.

However, both the DNR and lawmakers discovered that many more piers than originally anticipated would not qualify for grandfathering. In addition, very few piers that did qualify for grandfathering were registered with the DNR.

Accordingly, lawmakers decided that it would be best to resolve the pier grandfathering issue once and for all by grandfathering all existing piers.

Grandfathering of Existing Piers

Under the new law, all existing piers placed before April 17, 2012 are grandfathered unless:a. The DNR notified the riparian owner before April 17, 2012 that the

pier is “detrimental to the public interest.”b. Or if the pier “interferes with the riparian rights of other riparian

owners.” A pier that extends into a neighbor’s riparian zone, which is the water in front of the neighbor’s property, is an example of a pier that would interfere with the neighbor’s riparian rights.

Also, if the pier is grandfathered, the riparian owner may relocate or reconfigure the pier as long as the pier is not enlarged.



In addition, the riparian owner does not need to register the pier with the DNR in order to grandfather the pier. All existing piers are automatically grandfathered unless the pier meets at least one of the two exceptions previously listed.

Note: REALTORS® should ask waterfront property owners if (a) they have received notice from the DNR that their pier is “detrimental to the public interest,” and (b)their pier interferes with the rights of other riparian owners.

New Piers

In addition to the grandfathering provisions, the new law creates a few different standards for new piers, which are piers placed for the first time on or after April 17, 2012.

First, the new law increases the boat density requirement under existing law to allow for personal watercraft, such as jetskis and waverunners. Under current law, waterfront property owners are allowed two boat slips for the first 50 feet of frontage and one boat slip for each additional 50 feet of frontage thereafter. Because a personal watercraft is often tied to a dock and is not placed in a “slip” or on a hoist or lift, the law is not clear as to whether any limits exist regarding the number of personal watercraft that a property owner may have. Accordingly, the new law allows riparians to have two personal watercraft for the first 50 feet of frontage and one additional personal watercraft for each additional 50 feet of frontage thereafter. This is in addition to the number of boat slips allowed under current law.

Second, the new law changes the maximum size requirement for loading platforms on new piers to 200 square feet in total area. Prior law allowed for a maximum width of eight feet wide but did not limit the total area. This change allows for greater flexibility in the size and dimensions of loading platforms so that riparian owners can determine what configuration would best meet their needs.

As a result of these changes, new piers can be placed without obtaining a permit from the DNR if the pier meets the following requirements:• Width: No more than six feet wide.

• Length: No longer than what is necessary to moor your boat or use a boat lift, or 3-foot water depth, whichever is greater.

• Number of boats: Two boat slips/lifts for the first 50 feet of water frontage of your property, plus one more boat slip/lift for each additional 50 feet of frontage.

• Number of personal watercraft: Two personal watercraft for the first 50 feet of water frontage of your property, plus one more personal watercraft for each additional 50 feet of frontage.

• Loading platforms: A loading platform/deck with a surface area no greater than 200 square feet.

If a waterfront property owner wants to place a pier that exceeds these standards, a permit must be obtained from the DNR.

Piers Located in Areas of Special Natural Resource Interest (ASNRI)

Due to a law change in 2003, riparian owners located adjacent to a body of water considered by the DNR to be an area of special natural resource interest (ASNRI) were unable to lawfully place a pier without a permit. This problem was magnified by the fact that the definition of ASNRI is overly broad and includes any “area that possesses significant scientific value, as identified by the DNR.” This definition is vague and gives the DNR the discretion to designate any area to be an ASNRI. In fact, the term has been interpreted to mean not just specific areas in a lake, but the entire lake in some cases. As a result, riparian owners located adjacent to an ASNRI may be required to obtain a permit to place a pier and could be denied from placing a pier altogether.

While the new law did not eliminate the requirement to obtain a permit for a pier located in ASNRI waters, it does clarify that if a pier is located in an ASNRI, then (a) the pier is eligible for a general permit, and (b) the DNR may impose conditions on the location, design, construction and installation of a pier located in ASNRI waters, but the DNR may not prohibit the owner from placing a pier. In other words, the riparian owner is guaranteed the right to place a pier, but the exact dimensions may be determined by the DNR. This provision is intended to allow the DNR to determine

the size, location and design of a pier to avoid any adverse impacts to sensitive areas like fish spawning areas and other sensitive habitats, but also protects the right of waterfront property owners to place a pier to access the waterway.

See the DNR’s website for an interactive map showing all of the lakes and rivers in Wisconsin that are designated ASNRI at http://dnrmaps.wi.gov/imf/imf.jsp?site=SurfaceWaterViewer.deswaters. Nonconforming Wet Boathouses In addition to modifying the pier regulations, the new law eliminates the restrictions placed on the ability of riparian owners to maintain and repair wet boathouses, which are located below the ordinary high water mark. The restrictions limited the value of all maintenance and repairs over the life of the property to 50 percent of the assessed value of the boathouses, which was intended to eventually eliminate these boathouses by forcing them to fall into disrepair.

The 50 percent rule has been unfair to property owners because it applies retroactively to existing boathouses that were legal when originally constructed. Moreover, the rule had proven difficult to enforce because it is almost impossible for county zoning administrators to keep track of each dollar spent on necessary paint, boards and roofing shingles. As a result, it encouraged property owners to be dishonest about what they have spent on repairs and maintenance.

The new law eliminates application of the 50 percent rule to wet boathouses. As a result, riparian owners may perform unlimited maintenance and repair to these existing boathouses that were constructed before 1979. This new law change allows property owners to “keep what they have” but does not allow the boathouses to be expanded.

For more information on the new law, please contact Tom Larson ([email protected]) at (608) 240-8254.

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


In October 2010, the WRA mailed every member a brochure that laid out the real estate record of the two

candidates for governor, Republican Scott Walker and Democrat Tom Barrett. The purpose of the mailing was to outline in detail the differences between the two candidates and why our board of directors recommended Walker over Barrett.

In January 2012, the WRA board of directors endorsed Gov. Walker in the historic recall election scheduled for June 5 this year. And once again, Milwaukee Mayor Tom Barrett is a candidate in the recall, setting up a possible rematch between Walker and Barrett.

In February of this year, we published Walker’s record on real estate issues. In the April edition of Wisconsin Real Estate Magazine, we published Kathleen Falk’s record. In this issue, we once again publish what we published in the October 2010 mailing regarding Tom Barrett’s real estate record. Only 16 months have passed since Walker was elected, and Mayor Barrett’s record remains virtually the same. Here is what we told you in October 2010.

Why the WRA Board Did Not Endorse Tom Barrett for Governor

Tom Barrett’s positions on past issues:

• Introduced six consecutive budgets with a property tax levy increase, totaling over 24 percent, as Mayor.

• Supported large fee increases impacting property owners, such as snow removal and trash collection during his tenure as Mayor.

• Supported a series of mandates on local construction projects that increased costs as Mayor.

• During Barrett’s tenure as Mayor, the City of Milwaukee was one of the principle supporters of Assembly Bill 472, legislation that would prohibit real estate licensees from giving opinions of

value, except for establishing a listing price, unless they held an appraiser’s license/certification.

• Supported a landlord licensing ordinance that requires owners of rental property to register property and pay new fees.

• Refused to make a pledge to not impose or support a sales tax on real estate

commissions or commercial leases.

• Refused to make a pledge not to increase the real estate transfer tax.

• Supported changing the uniformity clause to provide property tax relief to only targeted property owners.

• Supports having the Natural Resources Board appoint the DNR Secretary, which the WRA opposes.

• Opposed increasing the federal tax deduction for health savings accounts.

• Opposed giving property owners the ability to bring “takings” cases to federal courts.

What was true back in 2010 is true today. Based on real estate-related issues, Scott Walker has a superior track record over Tom Barrett. Watch for additional information regarding this historic recall election in the weeks ahead.

Joe Murray is Director of Political and Governmental Affairs for the WRA.

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Down payment assistance.First-time home buyers may qualify for up to $11,000 in down payment assistance with a WHEDA Advantage mortgage. WHEDA’s new, low-cost secondary fi nancing option can be paired with down payment assistance programs provided by the Federal Home Loan Bank of Chicago reducing cash-to-close, shrinking monthly mortgage payments. To see if your fi rst-time home buyer qualifi es, go to www.wheda.com/Realtors. Income and purchase price limits apply and home buyer education is required. Interest rates are subject to change daily.

800.334.6873 � www.wheda.com

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may 2012 - wisconsin real estate magazine

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