md realtor magazine november 2013

VOLUME XLVII Number 6 NOVEMBER 2013

The Maryland Association of REALTORs® www.mdrealtor.orgThe Voice for Real Estate® in Maryland

6 2013 Annual Conference & Awards

17 MAR Memeber Benefits

22 2013 Life Achievement Award

Consumer Website: www.marylandhomeownership.com

12 Revised Forms for 2013

*As of December 31, 2012. ©2013 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Operated by a subsidiary of NRT LLC. 6775BAL_0213

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www.mdrealtor.org MARYLAND REALTOR® NOVEMBER 2013 1

President’s Perspective R U s s B O y C E

market are critically import. Help us make the case. I ask each of you to continue the efforts of our past leadership to get all Maryland REALTORs® to respond. When you see the “CALL TO ACTION” on the MAR Facebook page, please “share” it with as many people as possible. If you get an email or text, please forward it to at least 3 people in your office.

Additionally, I encourage you to invest in yourself professionally. Last year, under Carlton Boujai, we began an effort to “Raise the Bar” and improve our performance. MAR & your local Association/Board offer education courses that will help us do that. Visit the Education calendar at mdrealtor.org to learn more. Consider now the time to pursue that Designation you have been considering. Raise your awareness and make this year your best year in real estate.

It is an honor to lead our professional Association into 2014, which promises to be a year of change and challenge. I intend to focus on helping members raise their awareness which in turn will make their businesses prosper. “One degree from good to GREAT” is a philosophy for how we can make our professional lives more successful. Going that extra step when dealing with clients or anyone else in the course of business makes us that much more valuable to clients and to fellow REALTORS®.

Annual Conference/Industry Awards

Please take a moment to read the profile on Pat Kane, our 2013 Life Achievement awardee. Pat has been a champion of our industry for over 30 years. Congratulations to all our industry award individual and local association/board recipients. Take a look at the photo spread beginning on page 6 to see our Conference highlights. And don’t forget to save the dates for the 2014 Annual Conference and EXPO, september 8–10.

MAR Member Benefits

MAR exists to serve you, our members. This month, we are highlighting many of the benefits of your membership. Check out our benefits on page 17, which include an array of affinity partners from national companies.

I am always available to answer your questions or hear your concerns. Please contact me at [email protected].

One Degree From Good to GREAT

A key part of making our profession and our industry successful lies in our political

voice. Next year will be a critical one, as national, state and local elections will bring into office officials who will have a great deal to say about our business, and the rights of the property owners we serve. We at MAR are planning to expand our involvement at all levels, to make sure that our industry, our profession and the public are well served by legislative and regulatory actions in the years ahead.

We will need your help. It has never been more important to make sure our REALTOR® voice is heard. Watch for emails from your broker, from MAR and from NAR, asking you to respond to “CALLs FOR ACTION.” Our response rate in Maryland exceeds the average NAR response rate. But this is nowhere near enough to persuade elected officials that issues such as Mortgage Interest Deduction (MID) and the secondary mortgage

2 MARYLAND REALTOR® NOVEMBER 2013 www.mdrealtor.org

T A B L E O F C O N T E N T S

MAR MEMBER BENEFITS WITH DIRECT SAVINGS!

FEATUREs 2013 AnnuAl COnFEREnCE & AWARDS 6

2013 REAltOR OF thE yEAR nOMInEES 9

2013 AnnuAl COnFEREnCE AnD EXPO SPOnSORS 10

REvISED FORMS FOR 2013 12 Summary of Changes and Practice tips

MAR MEMBER BEnEFItS WIth DIRECt SAvInGS! 17

2013 lIFE AChIEvEMEnt AWARD Patrick J. Kane 22

DEPARTMENTs PRESIDEnt’S PERSPECtIvE 1

REGulAtIOn nEWS 24

MARylAnD REAl EStAtE COMMISSIOn nEWS 26

COMMERCIAl COnnECtIOn 28

RESIDEntIAl SAlES 30

SnIPPEtS 34

FROM thE hOtlInE 36

2013 LIFE ACHIEVEMENTAWARD

REVISED FORMS FOR 2013

122013 ANNuAL CONFERENCE & AWARDS

6

17

22

Thank You

PASADENA

Grace Pointe Community Church of the NazareneAnne Arundel County Association of REALTORS®

Anne Arundel County Chapter Women’s Council of REALTORS®

Maryland Association of REALTORS®

Maryland Chapter Women’s Council of REALTORS®

C R Goodman AssociatesHarkins Builders, Inc.Dirt ExpressBBT Lighthouse ProjectMessick and AssociatesAdelman, Sheff & SmithRobert W. Johnson Associates, Inc.Diversified PermitsAnne Arundel Tree“Un-limb-ited” Tree ServicePillar to PostStorm Utilities, Inc.Masser ContractorsBray & SharffMaryland Deckworks, Inc.All American Plumbing, Inc.M.N. Mack, Inc.Bay Area Mechanical Services, Inc.Stock Building Supply and Metal IndustriesReico DistributorsReliable Contracting CompanyBay Area DisposalSmith and Son’s Contracting

Sage TitleAppraisal ConceptsJ.F. Johnson Lumber Co.Bug OutArtistic Freedom & PaintingAnderson Minuteman PressUPS Store at Lake ShoreACE Hardware – Lake ShoreSign-A-Rama of Glen BurnieRock Top FabricationsBrucksch & Sons ContractingBernie LindemannSteve ClarkeAmy MenradMark Morgan and the Partners and staff of Two Rivers Steak & Fish HouseAll Out Bail BondsAll Stretched Out Limousine ServiceAll Counties Fire and Water Mitigation, Inc.Edible Arrangements of Glen BurnieBrewer’s ServicesRick Daugherty, OxspeedMary Dixon, G’Day Pet ServiceJing Ying InstituteJamie IrvineOutback SteakhouseWendy SpryKimberly ToolanJohn’s Auto BodyMaggie WeaverLaura’s Eyes PhotographySeverna Park Community Center

Cooch & Bowers PADavco Restaurants, Inc.The Sikes FamilyTLC Home Organizing & Staging ServicesBay Area Restoration FundThe Columbia BankLaurie MurrayAlease BowlesTom LevinJanice KirknerJohn and Patricia MitchellSidney and Sandra HochsteinThe Earl FamilySusan BentsOWLS Sunday School Class, Elvaton Baptist ChurchChris FitchRobert and Nancy SikesMartha LabeauDeborah and James FrantzCherie and Donald LeminSchmidt Family EnterprisesDebbie RyanMarcia FelicianoRick and Robbie DunningAegis Title AssociatesLynne and John HugendublerDeborah and Ronald SwankKaren and Lawrence KushnerJames and Debra VanghelJoAnne PooleChili’sZimmerman Seamless Gutters, Inc.

ESSEX

Greater Baltimore Board of REALTORS®

GBBR Charitable Foundation “Raise the Roof” projectGreater Baltimore Chapter Women’s Council of REALTORS®

Maryland Association of REALTORS®

Maryland Chapter Women’s Council of REALTORS®

Metropolitan Regional Information Systems, Inc. (MRIS)CFG Community BankTDE Home ServicesSmart BoxVenable LLPACF EnvironmentalBlazeguardComer & SonHarkins Builders, Inc.Shelter SystemsCapital Concrete Foundations, Inc.Southard BrothersStock Building Supply and Metal IndustriesLanders ApplianceNTT AssociatesSage TitleKipper AppraisalsJoe the Architect, Inc.RE/MAX American DreamFriends of Senator StoneChili’s84 Lumber – Curtis BayJ & W Framing ContractorsPat the Plumber

MARYLAND HOME MAKEOVER™

MARYLAND HOME MAKEOVER™ projects in Essex and Pasadena in 2013–2014 are made possible through the support, commitment and generosity of REALTORS®, contractors, suppliers, friends and community groups targeting the accessibility needs for these families.

EQUAL HOUSINGOPPORTUNITY

There is still time to make a tax-deductible donation for 2013.”

2014 Maryland Association of REALTORS® Leadership Team

J Russell “Russ” BoycePresident RE/MAX 10010665 stanhaven PlaceWhite Plains MD [email protected]

Janice R KirknerPresident ElectLong & Foster Real Estate, Inc.1208 Nottingham DriveWestminister, MD [email protected]

Bonnie CasperSecretaryLong & Foster Real Estate, Inc.4650 East-West HighwayBethesda, MD [email protected]

Carlton J Boujai JrImmediate Past PresidentEXIT Realty Prosperity Group5300 Westview Drivesuite 105Frederick, MD [email protected]

Mary C AntounChief Executive OfficerMaryland Association of REALTORS®

200 Harry s Truman Parkway suite 200Annapolis, MD [email protected]

Maryland Association of REALTORS®200 Harry s Truman Parkway | suite 200

Annapolis, MD 21401-7348800.638.6425 | www.mdrealtor.org

Executive Leadership TeamJ Russell “Russ” Boyce | PresidentJanice R Kirkner | President Elect

Carole A Maclure | TreasurerBonnie Casper | secretary

Carlton J Boujai Jr | Immediate Past PresidentMary C Antoun | Chief Executive Officer

EditorMelissa Lutz | [email protected]

Advisory CommitteeJenn Klarman | Chair

AdvertisingArlene Braithwaite | 410.772.0820

Publication DesignHBP, Inc., 952 Frederick street, Hagerstown, MD 21741

800.638.3508 | www.hbp.com

Mission StatementThe Maryland Association of REALTORs® exists to support all segments of its membership and their specialties. The Maryland Association of REALTORs®, through collective efforts with local boards/associations and the National Association of REALTORs®:■ Develops and delivers programs, services and related products

that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners;

■ Assists members in ethically and professionally serving the public;■ Promotes and preserves the right to own, transfer and use real

property; and■ Protects the right of members to conduct business within a

framework of fair and reasonable laws and government regulations.

In principle and in practice, the Maryland Association of REALTORs® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.Maryland REALTOR® (UsPs 0016-017) is published bimonthly by the Maryland Association of REALTORs®, suite 200, 200 Harry s Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, suite 200, 200 Harry s Truman Parkway, Annapolis, MD 21401-7348.Member subscriptions of $3.81 are paid with annual dues.This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the Maryland Association of REALTORs®.Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request.While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2013 Maryland Association of REALTORs®, Inc.

Carole A MaclureTreasurerRE/MAX Advantage Realty17304 Evangeline LaneOlney, MD [email protected]



& AnnuAl COnFEREnCE

AWARDS 2013


AnnuAl COnFEREnCE

AWARDS MARylAnD ASSOCiAtiOn OF REAltORS ANNuAL CONFERENCE AND EXPOOver 1,100 MAR members and attendees gathered in Ocean City in

mid-september for the Annual Conference and EXPO. The Annual

Conference featured extensive, cutting-edge continuing education,

numerous networking opportunities and a full array of products and

services expressly geared for the members in a packed EXPO Hall.

Life Achievement AwardPat Kane received the MAR Life Achievement Award from 2012 awardees JoAnne Poole & Iona Harrison.

Omega Tau Rho 2012 President Pat Terrill received the medal from 2013 NAR Treasurer Bill Armstrong.

Garrett County Board of REALTOR members accept the Special Projects Award for their work to provide hats & gloves to 216 children in their community. The Board will receive $1,000 to be given to a charity of their choice.

southern Maryland Association president, Kevin Turner (middle) members accept the 1st Honorable Mention from CARE Committee Chair, Linda simpson (right) and 2013 MAR President, Carlton Boujai (left). The $5000 award will be donated to the charities of their choosing.

Community Action and REALTOR Excellence (CARE) AwardsThis award recognizes outstanding achievements in Community service by Local Association Members.The nine local nominees are: Greater Baltimore Board, Bay Area, Greater Capital Area, Cecil County, Frederick County, Garrett County, Mid-shore Board, Prince George’s County and southern Maryland.

Cecil County Board members Linda McKinnon and Nancy simpers (middle left & middler right) accepted top honors from CARE Committee Chair Linda simpson and 2013 MAR President, Carlton Boujai. Their $10,000 prize will be given to up to five charities of their choosing.

Community Service AwardLinda McKinnon was presented with the 2013 Community service award by 2012 recipient, Simon Nwaigwe.

President’s AwardPresident Carlton Boujai presents the President’s Award to Linda simpson for her outstanding efforts and leadership this year.

Shining Star AwardCarla Kemp accepts the MAR shining star Award. The award was presented to Carla for her work as a new volunteer with the Annual Conference Committee.


2013 REALTOR OF THE yEAR N O M I N E E S

Bonnie CasperGreater Capital Area Association

Gloria CastleFrederick County Association

Tom LevinAnne Arundel County Association

Janice KirknerCarroll County Association

Michael KennedyGarrett County Board

Susie HaywardMid-Shore Board

Sharon McKennaGreater Baltimore Board

Paula GilleyCecil County Board

Marianne FergusonHarford County Association

Anthony WilliamsPrince George’s County Association

Mary Jane StevensBay Area Association

Pamela WadlerCoastal Association

Barbara LinthicumHistoric Highlands Association

Teri DeaneHoward County Association

Kevin TurnerSouthern MD Association



2013 AnnuAl

COnFEREnCE AnD

EXPO SPONSORS

Main Conference SponsorsMRIsPentagon Federal Credit Union

Platinum SponsorCentury 21 Real Estate

2013 MAR President, Carlton Boujai recognizes the Annual Conference & EXPO Main sponsors with framed logos. (L) Kevin Wiles, President, Prudential PenFed Realty accepts on behalf of Pentagon Federal Credit Union, and (R) David Charron, President & CEO, MRIs.


Overall Conference SponsorsCarroll County Association of REALTORs®Cecil County Board of REALTORs®EXIT Realty Mid-AtlanticGarrett County Board of REALTORs®Greater Capital Area Association of REALTORs®Harford County Board of REALTORs®Maryland Hispanic Real Estate Industry Association (MHREIA)Mid-shore Board of REALTORs®Women’s Council of REALTORs®

REALTOR Business CenterColdwell Banker Residential Brokerage

NAR Directors BreakfastAnne Arundel County Association of REALTORs®Howard County Association of REALTORs®

Continental BreakfastsCoastal Association of REALTORs®

Wednesday Refreshment BreakPrince George’s County Association of REALTORs

INSTALLATION BANquET

Platinum SponsorsRE/MAX 100Lakeside TitlesunTrust Bank

Cocktail Reception & Wine Tasting SponsorLong & Foster Real Estate

Gold Sponsorsouthern Maryland Association of REALTORs®

Décor SponsorRE/MAX Central Atlantic

Former President Banquet SponsorsBill Armstrong, 2000 MAR PresidentBill Neary, 2002 MAR PresidentBillie Landbeck, 1978 MAR PresidentCarlton Boujai, 2013 MAR PresidentCarole Maclure, 2013 MAR Treasurer, 2008 MAR PresidentCathy Werner, 2011 MAR PresidentIlene Kessler, 2007 MAR PresidentJoAnne Poole, 2005 MAR PresidentJohn Harrison, 1997 MAR PresidentPat Terrill, 2012 MAR Presidentsteve Meszaros, 2010 MAR President

Golf TournamentHole in One Sponsorsharon McKenna in Memory of Christopher McKenna

Golf Tee SponsorCarla Kemp, Resource TitleMartha Lessner, REALTOR®The Mortgage LinkPrudential PenFed Realty

Beverage CartFrederick County Association of REALTORs®

Longest Drive Prize PackagesThe Original Greene Turtle, Ocean City, MD


were complied with. It also alerts buyers to contact the appropriate local government agency and/or a licensed engineer to verify permit issuance/status.

Practice Tip: We advise buyer agents to encourage buyers to inquire about deferred water and sewer assessments imposed by private entities, and whether the proper permits were obtained and complied with for any improvements prior to submitting an offer.

unimproved Land Contract of Sale■ Paragraph 17—The seller Contribution Addendum

was added to the list of addenda.■ Paragraph 50—This provision was revised to alert

buyers to inquire about deferred water and sewer assessments imposed by private entities.

Practice Tip: We advise buyer agents to encourage buyers to inquire about deferred water and sewer assessments imposed by private entities prior to submitting an offer.

Revised Forms for

2013 Summary of Changes and Practice Tips

Contract ChangesResidential Contract of Sale■ Paragraph 5—Regarding ground rents, the phrase “or

to be created” was removed.■ Paragraph 16B—The link providing additional

information about the Lead Renovation, Repair and Painting Rule was updated.

■ Paragraph 17—The seller Contribution Addendum was added to the list of addenda.

■ Paragraph 21—The new title of the Property Inspections and Condition Notice was inserted.

■ Paragraph 27—This provision was modified to alert sellers that permit violation notices must be complied with by settlement.

■ Paragraph 50—This provision was revised to alert buyers to inquire about deferred water and sewer assessments imposed by private entities and about whether any improvements to the property required permits and whether any permits issued


MAR Contract Addenda ChangesAll MAR Contract Addenda■ The headings of ALL of the MAR Contract Addenda

have been modified and no longer require insertion of the Contract of sale date (the word “dated” and the blank line appearing next to it have been deleted).

Practice Tip: Do not forget to insert the date of the Addendum, which in many instances is the same as the Date of Offer.

Short Sale Addendum to the MAR Contract■ First line—The first line was inserted to make clear

that the terms of the short sale Addendum supersede any conflicting language elsewhere in the contract.

■ Paragraph 1—Language was inserted to clarify that a seller’s failure to keep existing mortgages free of default until settlement is not a default of the contract.

■ Paragraph 4—Language was inserted to alert buyer and seller that third parties may request that seller agree to terms not specified in the contract and that this decision lies exclusively with the seller.

■ Paragraph 5—This provision was modified to enable both buyer and seller to terminate the contract if third party approval is not obtained within the agreed upon time frame or if the parties cannot agree to proposed modifications to the contract requested by a third party.

Practice Tip: Licensees should advise clients of the potential for third parties to condition acceptance of the contract on the seller’s agreement to additional terms not specified in the contract.Practice Tip: If either party elects to terminate the contract in accordance with the terms of the Addendum, buyer/seller may use the Unilateral Notice of Termination. If there is agreement regarding termination of the contract, the parties may use the Mutual Release of Obligation under Contract form.

Disclosure of Licensee Status Addendum■ This form was completely revised to comply with

revised Regulation 09.11.02.02. Practice Tip: This Regulation was amended to require licensees to disclose their licensing status when selling property they own or have an interest in, or when acting on behalf of certain individuals who are selling property. similarly, licensees must disclose their status when purchasing property for themselves or when acting on behalf of certain individuals who are purchasing property. you may review the revised Regulation at: http://www.dsd.state.md.us/comar/getfile.aspx?file=09.11.02.02.htm%20

FHA Financing Addendum■ Paragraph 1—The words “current market” were removed.

The phrase “as charged by lender” was inserted.■ The sentence below the signature lines on page 2 of

the Addendum was inserted.Practice Tip: The sentence referenced above was inserted to alert licensees involved in the transaction that FHA rules require that they certify that to the best of their knowledge and belief, the terms of the contract are true.

Notice Pursuant to Condition of Property and Possession Paragraph of MAR Residential Contract of Sale and Notice Pursuant to MAR Inspections Addendum■ The title of this Notice was changed to Property

Inspections and Condition NoticePractice Tip: The revised title should make it easier for licensees to identify the form.

Onsite Sewage Disposal Inspection Addendum■ Paragraph 3—For consistency, the phrase “not later

than ____ days prior to settlement” was removed and “within ________ (____) days from the Date of Contract Acceptance” was inserted in its place.

Revised Forms for

2013 Summary of Changes and Practice Tips


VA Financing Addendum■ Paragraph 1—The words “current market” were

removed. The phrase “as charged by lender” was added.■ Paragraph 4—The citation number was updated.

Water Quality Addendum■ Paragraph 1—This provision was modified to alert

the parties that the various tests may be required by certain lenders.

■ Paragraph 3—For consistency, the phrase “prior to settlement” was removed and “from the Date of Contract Acceptance” was inserted in its place.

MAR Brokerage Agreements ChangesExclusive Right to Sell Residential Brokerage Agreement■ For consistency, the word “seller” was inserted in place

of “Owner” throughout the document.■ For consistency, the word “Property” was capitalized

throughout the document.■ Paragraph 16B—The link which provides additional

information regarding the Lead Renovation, Repair and Painting Rule was updated.

■ Paragraph 19—This provision was inserted to alert the seller that the contract may require that she/he cure any outstanding violations.

■ Paragraph 26—Line 8 discussing execution and delivery of the deed was removed.

Exclusive Buyer/Tenant Representation Agreement■ Paragraph 4—The phrase “has occurred” was removed.■ Paragraph 12—Line 8 discussing execution and

delivery of the deed was removed.

Exclusive Right to Sell unimproved Land Listing Agreement■ Paragraph 4—The phrase “Broker to insert the terms of

termination” was added.■ For consistency, the word “Property” was capitalized

throughout the document.

Exclusive Right to Lease Residential Brokerage Agreement■ Paragraph 4—The phrase “Broker to insert the terms of

termination” was added.■ For consistency, the word “Property” was capitalized

throughout the document.

MAR Brokerage Addenda ChangesAll MAR Brokerage Addenda■ The headings of ALL of the MAR Brokerage Addenda

have been modified and no longer require insertion of the Brokerage Agreement date (the word “dated” and the blank line appearing next to it have been deleted).

Short Sale Addendum to the MAR Exclusive Right to Sell Residential Brokerage Agreement■ Paragraphs 6, 8, 10 and 13—These provisions

were incorporated into the Addendum pursuant to guidance issued by the Maryland Real Estate Commission concerning the applicability of the Maryland MARs Act (the “MD MARs Act”) as it relates to short-sales and real estate licensees. The guidance may be reviewed at: http://www.dllr.state.md.us/license/mrec/mrecshortsalesguide.shtml

Practice Tip: The guidance issued by the Maryland Real Estate Commission discusses permitted activities, licensee requirements and activities subject to the MD MARs Act. Regarding activities permitted, licensees may enter into a contract with a homeowner to market their house for a short sale, list the property in multiple list service, and market the property for sale. With regard to licensee requirements, licensees must refer a seller to a tax advisor or tax professional to explain to the seller the potential tax consequences of a short sale. They are also required to refer a client to a housing counselor for discussion about alternatives available to avoid foreclosure and inform the seller of, and refer to the licensee’s broker, any requests from the lender/servicer for reductions in real estate brokerage commissions on a short sale. Finally, engaging in activities such as collecting money in addition to the real estate brokerage sales commission from a short sale client requires compliance with the MD MARs Act. Please review the information posted on the above link for additional clarification.

Lock Box Addendum■ Title Change—The title of the Addendum was

modified to notify users that it may be used in sale and lease transactions.

■ For consistency, the word “seller” was inserted in place of “Owner” throughout the document.

Financial Condition Addendum■ For consistency, the word “seller” was inserted in place

of “Owner” throughout the document.


Dwelling Lease Template■Box at the top of page 1—Lines 4 through 7 were

inserted.Practice Tip: This language alerts users that the Template should not be used in Prince George’ s County. A licensee involved in a lease transaction in Prince George’s County should contact the Prince George’s County Association of REALTORs® to obtain the current document.■ Paragraph 8—Lines 6 through 8 were inserted to

clarify how late rental payments will be applied.■ Paragraph 16—This paragraph was modified to

comply with the revised smoke alarm law.Practice Tip: The new law, effective July 1, 2013, requires home sellers completing the Residential seller Disclosure and Disclaimer Form to answer additional questions regarding smoke alarms in the Form’s Disclosure section. All battery operated alarms must be sealed, long-life batteries by 2018. The new law also applies to single family rentals (two units or fewer). Alarms must be upgraded if any of the following conditions exist: (1) existing alarms are older than 10 years; (2) existing alarms fail to operate properly; or (3) a change of tenancy occurs, and battery operated units have not already been upgraded to sealed, long-life batteries. Additional information regarding the smoke alarm

law may be obtained at the following link (select “LINK TO ARTICLE”). http://www.mdrealtor.org/Legislative/GovernmentAffairsNews.aspx■ Paragraph 17—This notice was inserted to clarify that

some jurisdictions have a requirement that the tenant be provided information concerning the testing and maintenance of carbon monoxide detectors.

Practice Tip: In those jurisdictions where the aforementioned requirement exists, the tenant should initial the Tenant Certification.■ Paragraph 19—For consistency, the items listed were

alphabetized.■ Paragraph 22—For consistency, the items listed were

alphabetized.■ Paragraph 33E—The link providing additional

information regarding the Lead Repair, Renovation and Painting Rule was updated.

■ Paragraph 35—A sex offender provision was inserted.Practice Tip: Licensees working with tenants should advise the tenant to investigate this issue prior to signing the lease.■ Paragraph 51—The first four lines of the paragraph

were inserted to clarify the term “broker” as used in the lease.

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MAR Legal Hotline–1-800-888-1272Free, authoritative legal advice is available by calling the MAR Legal Hotline or by submitting a WebQuestion Form. Questions on all aspects of real estate law are answered. A written response is sent to all callers and their brokers.

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■ Easy computer access to receipts when needed.

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Office DepotOffice Depot provides our members access to new and more products and services. With the partnership, MAR members will quality for an instant savings on office supplies, copy and printing services, and promotional products. Additional promotions will be run throughout the year to provide additional savings. For Assistance or questions Contact: Jill A. Johnson; [email protected] ; 443-643-6832. Office Depot Business solutions Division, http://business.officedepot.com—contact Jill for online ordering setup under the account.

uPSLooking for bottom line savings? Maryland Association of REALTORs® members can now save up to 30% percent on their express air & international shipping through UPs (NysE: UPs). In addition, the enhanced MAR program now offers member’s savings on UPs ground services! To enroll for the UPs savings Program can log onto www.savewithups.com/mar or (800) 325-7000. When calling, simply let the UPs Associate know you are a member of Maryland Association of REALTORs®. Members enrolled in the original UPs program (enrolled prior to August 2010) must re-enroll to take advantage of this new exclusive offer, so re-enroll today and start saving now!! Re-enroll by logging onto www.savewithups.com/mar or call (800) 325-7000.

Benefits by ChoiceBenefits By Choice, Inc. is pleased to offer Maryland REALTORs® Association Members a new way to shop for the insurance benefits they need. With our service, you will get comparison quotes from multiple insurance providers. Feel free to shop and find the most affordable Health, Dental, Vision and Life Insurance coverages available, our goal is to enable you to make an informed decision when choosing between several top carriers.

If you wish, MAR Members can reach our BBC Representative, stuart Jackson directly by calling 888-424-4842 ext. 101. All after hour calls will be returned the next business day.

Just go to: www.benefitsbychoice.com , Click: Get your complimentary card now! , Click: scripsave, your MAR LOG IN CODE 937.

Maryland REALTOR® Rx ProgramThis program is being provided to you and your family & friends to help lower your prescription drug costs. simply create and print your FREE Prescription Drug Card below and receive savings of up to 75% (discounts average roughly 30%) at more than 54,000 national and regional pharmacies. This card can be used as your primary plan and/or it can be used on prescriptions not covered by your insurance plan. Visit http://tinyurl.com/mqpgp8a.

REALTOR® License Platesshow everyone that you’re a REALTOR®. This special plate will set you apart from everyone else as a Maryland REALTOR®. For information or an application, contact Halle Papai at 800-638-6425 or [email protected]. (Vanity plates are not available with this offer.)

Benefits of NAR Membership

Real Strength. Real AdvantagesParticipating in a membership of over 900,000 members gives you Real strength. Real Advantages. NAR serves the diverse interests of all our members who specialize in residential or commercial real estate, including established and new agents, brokers/owners, association executives or board presidents.

■ REALTORs® of all specialties:

■ Enjoy greater earning potential

■ Have access to valuable education and information resources

■ Gain political power

■ Adhere to a strict Code of Ethics

Every year, members receive a Membership Reference Guide from NAR outlining the member benefits, educational courses, programs and services available. This Guide also contains an eye-catching membership identification card with the member’s unique NRDs number. Members use this number to take advantage of special offerings from REALTOR VIP® Alliance Partners.

Visit www.realtor.org/programs/realtor-benefits-programs

Visit www.mdrealtor.org to view updated member discounts & benefits

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Patrick J. Kane

In the early 1970s, Pat Kane worked

for Pulte Homes as a building

materials purchasing manager, “not

the market’s strongest moment…,”he recalls. Though he

wasn’t a member of the sales force, he worked closely

with them, so when sales fell off, he asked to go to a new

subdivision the company was building in Baltimore. He

sold nine units in a weekend, and never looked back.

starting his own firm in 1976, Kane was one of the

top first-year licensees in the Baltimore County. His

extensive involvement in the REALTOR® organizations,

at all levels, began when someone recognized his

natural teaching and leadership aptitude and asked

him to get involved. “I attended a state Teachers College

in western Pennsylvania, where I grew up, and always

intended to become a teacher,” he explains. It didn’t

take long to figure out that as an active member of the

REALTOR® associations, he could do both: have his career

in real estate, and share his knowledge, principles and

experience with others.

2013Life Achievement Award


Kane has served on countless

local, state, and national REALTOR®

committees. He holds the distinction

of having served as president of

three local associations/boards,

including the largest and one

of the smallest in Maryland:

Montgomery County (now Greater

Capital Area Association), Garrett

County Association, and Greater

Baltimore Board. His service at

each was marked by extraordinary

leadership in the local community

and nationally, including recognition

by the Maryland Governor for his

work on housing affordability in

Montgomery County, and one of

the first HOPE Awards from NAR for

a citywide campaign in Baltimore

to educate consumers about

unscrupulous real estate predators.

Along the way, Kane served on the

MAR and NAR Boards of Directors

and on various committee and

chair positions. Throughout his

managerial career, with Hugh T.

Peck Properties, and with Coldwell

Banker, his passion for teaching

real estate courses and more

importantly, his ethics and values,

has continued, within his companies

and for Montgomery College.

Kane notes that in Baltimore in the

early 1990s, he had the good fortune

to work for past NAR President Tom

stevens. “He’s younger than I am,”

Kane notes, “but I learned more from

him than from anyone else in the

real estate business. He taught me

to hire the right people and treat ‘em

right, and the money would follow.

It’s absolutely true, in any enterprise.

Kane is generous in how he views

his professional accomplishments.

“When I reflect on the course of my

lifetime,” he comments, “I see the

people who were so very good to

me. There are a lot of givers in our

industry. From my earliest days, at

every crossroads, there’s always

been someone who’s been put in

my path to direct me. Who I am—my

personality, my ethics— is made up

of a hundred different people, at

least. We’re all affected like this, but

if we can’t see it, we’re missing out

on a lot.”

The Life Achievement Award is

presented to members of the

Association who have been active in

the real estate industry for at least

25 years and have demonstrated

through their careers extraordinary

and outstanding leadership to the

real estate profession, and to the

REALTOR® organization at the state

and local level. Recipients are widely

acknowledged by professional

colleagues for the highest level

of professional competence and

personal and professional ethics.

Kane received the Lifetime

Achievement Award during the MAR

Annual Conference & EXPO in Ocean

City. In the presentation, Kane was

acknowledged as one of the very

‘givers’ he speaks of, using his time

and talent to mentor and nurture

fellow professionals in the industry,

and make the business better, and

more respectable, at every turn.

Pat believes that he now enjoys

the best of both worlds, as the

owner of Coldwell Banker Deep

Creek Realty in beautiful western

Maryland. He and his wife Jane

Ann have five children, four

grandchildren, and a lovable

110-pound shiloh shepherd.

2013Life Achievement Award

From my earliest days, at every crossroads, there’s always been

someone who’s been put in my path to direct me.


Regulation News M A R K F E I N R O T H , E s Q U I R E

Short Sale Assistance and the Maryland MARS Act

In the last issue, I discussed the revised short sale guidance issued by the Maryland Real Estate Commission (MREC), which outlined the actions licensees may and may not take to facilitate the process of obtaining a lender’s third party approval. This article addresses the Federal and Maryland laws that allow for more extensive assistance to short sellers provided by mortgage assistance relief service (MARS) providers.

MARs providers are regulated by the U.s.

Consumer Financial Protection Board (CFPB)

and the Maryland Commissioner of Financial

Regulation (CFR). Licensed Maryland real estate agents

and brokers may elect to be “MARs” providers in addition

to their work providing real estate brokerage services,

but MARs activities carry regulatory burdens beyond

those imposed by MREC. REALTORs® undertaking MARs

activities should remember that such actions could

produce exposure to liability that is most likely not

covered by a real estate broker or agent’s professional

liability insurance.

Under the Maryland MARs Act, adopted earlier this

year, mortgage assistance relief services are defined as

a service, plan, or program that is represented to help

homeowners prevent or postpone foreclosure, or assist

in getting other kinds of mortgage assistance such as a

loan modification, collection forebearance, short sale,

deed-in-lieu of foreclosure or extension of time to cure a

default. The Maryland CFR guidance for MARs providers

is at http://www.dllr.state.md.us/finance/advisories/

advisory-shortsales.pdf.

The CFPB rule was originally promulgated by the

Federal Trade Commission. The CFPB adopted both the

regulation and the FTC guidance which can be found at

http://business.ftc.gov/documents/bus76-mortgage-

assistance-relief-services-rule. While there is no license or

registration required under MARs to provide mortgage

assistance relief services, REALTORs® should not

underestimate the complexity of these state and federal

regulations. The REALTOR® organization does not offer

training or forms to practice in this field because the

MREC has taken the position that any activity beyond

communicating with a lender on behalf of a short seller

is outside the scope of the Maryland real estate license.

similarly, most professional liability insurance carried

by REALTORs® excludes coverage for activities outside

the scope of the insured’s real estate license. REALTORs®

should therefore carefully consider whether they have or

need insurance coverage for MARs activities.


The main point of the MARs regulation is that it is

illegal to charge an upfront fee for mortgage assistance

services. If you are considering offering MARs service,

remember that a customer or client must agree in writing

to a written offer of mortgage relief from the customer’s

lender, and services must be provided before you may

collect any money from a client. There are also several

consumer disclosures required by the law and regulation.

Customers must be told upfront the total cost of the

MARs service, that they can stop using your service at

any time, that you are not affiliated with the government

or the lender and that the lender might not agree to

change the terms of their mortgage.

These are only two of the major points of the MARs law

and regulation. While REALTORs® may offer mortgage

relief services, we strongly advise a careful review of

the practice guidelines issues by the CFPB and CFR

beforehand.

As always, please feel free to contact me if you have

any questions or comments regarding this article or

other real estate regulatory issues. I can be reached

at [email protected].

Mark Feinroth, Esquire, MAR Director of Regulatory Affairs.

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Maryland Real Estate Commission News K A T H E R I N E C O N N E L L y


New Broker Test Regulation

The Maryland Real Estate Commission has adopted a regulation requiring applicants for a Maryland real estate broker license to pass the written examination within one year of completing the mandated pre-licensing education. The Commission adopted a similar regulation last year for real estate salesperson applicants.

A broker or associate broker applicant who completed pre-licensing education after August 31, 2013 must pass the licensing test

within one year after finishing the pre-licensing course. If the applicant fails to pass the licensing examination within that one year period, he or she must repeat the entire course before retaking the test.

A phase in period of the new “one year” rule allows applicants who completed the pre-licensing course by or before August 31, 2013 to pass the licensing test by February 28, 2014. Applicants who fail to pass the test by the end of February 2014 must repeat the pre-licensing course before retaking the licensing exam.

The text of the new regulation is posted on the Real Estate Commission website at COMAR 09.11.01.14 at http://www.dsd.state.md.us/comar/getfile.aspx?file=09.11.01.14.htm.

Broker applicants who successfully complete Graduate REALTORs® Institute (GRI) classes, series 100, 200, 300 and 400 are eligible to sit for the broker test, provided they have met all other eligibility requirements.

REMINDER: you must have three years of experience IMMEDIATELy prior to applying to take the examination.

The Commission recognizes the considerable burden for applicants who do not successfully pass the required examination to retake the mandatory pre-licensing education. However, our primary mandate is to protect consumers. We are concerned that an applicant who is unable to pass the licensing examination within one year of completing the education requirement is unlikely to

pass the test in the future. Even if the applicant should pass the licensing test, the new licensee would not be aware of developments in the real estate brokerage law that occurred after completing the pre-licensing education. The Commission wants applicants sitting for the exam to have the most current instruction and knowledge of their laws and regulations.

We recommend that broker applicants plan ahead when preparing to take the licensing examination. Our earlier experience with the one year regulation for salespersons leads us to advise broker applicants that they should allow for time to provide documentation of their completed education and experience to PsI, our test vendor. Because there are only six test locations throughout Maryland and a limited number of seats at each test center, broker applicants should take the licensing test as soon as possible. It is worth noting that broker applicants are permitted to take the licensing test multiple times during the one year window following completion of the mandated education.

As always, please feel free to contact me if you have any questions regarding this or any other issue concerning Maryland real estate license law or practice. I can be reached by email at [email protected].

Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. If you have other questions regarding the digital CE record system or any other matter concerning your Maryland real estate license at contact her at [email protected] or visit http://www.dllr.state.md.us/license/mrec


Commercial Connection D E N I s E D O U G L A s

Commercial Investors In Today's MarketplaceAsset Preservation or Asset Accumulation?

Commercial investors constantly choose between asset preservation and asset accumulation. The strategy of asset preservation involves keeping current assets modern through investment, while asset accumulation involves the principle of location, location, location and of course, timing.

An investor who does not maintain a modern

property runs the risk of the property becoming

obsolete and depreciating in market value.

Cassidy Turley recently reported that “. . . since the office

sector recovery began in 2010, Class A [office space] has

absorbed 9.4 msf; meanwhile Class B and C have shed

3.8 msf.” Looking at asset preservation from a liability

prospective, Lee Whitman, general manager at MC Realty

Group in Kansas City, Mo. recently reported that “a slow

economy…increases the potential risk of liability claims

against property owners…[who are] postponing needed

repairs.”

Regarding asset accumulation, demand is now strong,

with prospective buyers and tenants indicating a

preference for securing an investment. On August 26,

2013, NAR Commercial Real Estate Outlook posted,

“Vacancy rates generally are tightening in commercial

real estate sectors with modest rent growth. National

vacancy rates over the coming year are forecast to

decline .2 percentage point in the office market, .6 point

in industrial, and .6 percentage point for retail; however,

the average multifamily vacancy rate is unlikely to

change, with that sector continuing to experience the

tightest availability and biggest rent increases.”

Recovery Expansion Hyper-supply Recession

Decreasing Vacancy Rates Decreasing Vacancy Rates Increasing Vacancy Rates Increasing Vacancy Rates

Low New Construction Moderate/High New Construction

Moderate/High New Construction

Moderate/Low New Construction

Moderate Absorption High Absorption Low/Negative Absorption Low Absorption

Low/Moderate Employment Growth

Moderate/High Employment Growth

Moderate/Low Employment Growth

Low/Negative Employment Growth

Negative/Low Rental Rate Growth

Medium/High Rental Rate Growth

Medium/Low Rental Rate Growth

Low/Negative Rental Rate Growth


national vacancy rates over

the coming year are forecast

to decline .2 percentage point in the

office market, .6 point in industrial, and

.6 percentage point for retail.

Additional industry reports cite low mortgage interest

rates and restless investors as two reasons why the

pendulum is swinging in favor of asset accumulation,

and that individuals, businesses, and institutions

have expanded the type and size of their real estate

holdings. These restless investors should take care to

understand the real estate market cycle if they hope to

be successful. The cycle, displayed in order of succession,

is characterized as follows:

Locally, according to Integra Realty Resource’s Viewpoint

2013 report, the office sector in the Washington DC

metropolitan area is considered to be in the recovery

stage; the retail sector well into the expansion stage, the

industrial sector in the recovery stage, and the apartment

sector in the hyper-supply stage.

so what does all of this mean? Timing is very, very

important. Today’s commercial property investor needs

to know where in the cycle a target property is to make

an informed decision regarding asset preservation or

asset accumulation. A local, commercial REALTOR® is well

equipped with the tools and knowledge necessary to

assist clients in making this decision.

Denise Douglas, BML Properties Realty LLC in association with Commercial Real Estate Advocates, Inc. A CCIM Candidate and Member of MAR Commercial Committee

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Housing Momentum Positioned to Wane, but for How Long?Higher Mortgage Rates, Seasonality and Washington Will Make Their Mark

Residential sales A N I R B A N B A s U

There are innumerable factors affecting the housing market at any given moment, some positive, some negative. On the positive side of the ledger are

employment creation and stock market performance. As of this writing, we enter our eighth month of sequestration. Despite the disproportionate impact on Maryland, the state’s economy has held its own to date, at least according to the Bureau of Labor statistics (BLs) Establishment survey. The survey found that Maryland’s economy added 43,300 jobs, or 1.7 percent, to aggregate nonfarm payrolls. That ranks the Free state 16th in the nation in terms of percentage job growth, up from a ranking of 22nd three months prior.

Here’s the issue: the Establishment survey data could be wrong. Indeed, for the period August 2012 to August 2013, the BLs’s Household survey, indicates that Maryland lost 10,580 jobs. And unemployment in Maryland is actually up this year, rising from 6.6 percent in January to 7.0 percent by August of this year.

It is theoretically possible to reconcile the data from the two different surveys. Marylanders may be losing positions that they have held in the District of Columbia, Northern Virginia and elsewhere. Those job losses would show up in the Establishment surveys of those other jurisdictions, but the associated unemployment would be reflected in Maryland’s Household survey. The actual answer is most likely somewhere in between the two survey results; the state’s economy has not performed as well as the Establishment survey suggests, but not nearly as poorly as the Household survey indicates.

On the negative side of the ledger are higher interest rates, a surge in foreclosures statewide early in 2013, the collateral effects of the now-ended federal government shutdown, fears of U.s. debt default (the debt ceiling was

only raised until February 7th of next year), confusion regarding the impact of new Maryland storm water taxes/fees, and typical post-summer seasonal factors. Through August, homes sales had held up nationally and locally. Nationally, existing home sales were up by 13.2 percent in August on a year-over-year basis. The national median existing-home price for all housing types was $212,100 that month, up 14.7 percent from the corresponding statistic one year prior. August represented the 9th consecutive month of year-over-year double-digit price increases and the strongest 12-month gain since October 2005.

Mimicking the nation, Maryland’s housing market dynamics have also remained positive, with both unit sales and sales prices exhibiting gains in July, August and september. According to data supplied by MRIs and the Coastal Association of REALTORs®, home sales statewide rose 17.2 percent in september on a year-over-year basis; 19 of Maryland’s 24 jurisdictions sales increases over that time span.

This performance is at least partially attributable to a race among prospective buyers to lock-in low interest rates during a period of generally rising mortgage rates. The large volume of contracts signed during the summer translated into a significant number of settlements in both August and september. Communities associated with large unit sales increases in september on a year-over-year basis include Baltimore County (25%), Anne Arundel County (23%), Harford County (23%), Frederick County (18%), Montgomery County (17%) and Prince George’s County (15%). In a number of smaller jurisdictions, including somerset, Charles and Cecil counties, percentage sales increases were even larger.


July 2013 vs. 2012Units AverAge Price

county 2013 2012 % change 2013 2012 % change

Allegany 31 39 -20.5% $91,251 $106,478 -14.3%

Anne Arundel 711 538 32.2% $381,960 $369,434 3.4%

Baltimore City 612 448 36.6% $188,470 $172,663 9.2%

Baltimore County 786 642 22.4% $287,015 $261,723 9.7%

Calvert 124 107 15.9% $332,591 $313,652 6.0%

Caroline 27 25 8.0% $136,869 $129,816 5.4%

Carroll 182 133 36.8% $318,230 $303,998 4.7%

Cecil 75 79 -5.1% $222,961 $235,513 -5.3%

Charles 173 122 41.8% $253,049 $237,534 6.5%

Dorchester 20 16 25.0% $144,460 $184,522 -21.7%

Frederick 340 216 57.4% $308,996 $265,876 16.2%

Garrett 31 20 55.0% $254,216 $263,810 -3.6%

Harford 319 245 30.2% $257,934 $252,597 2.1%

Howard 396 316 25.3% $452,364 $439,347 3.0%

Kent 23 18 27.8% $268,300 $285,456 -6.0%

Montgomery 1,280 972 31.7% $529,265 $499,413 6.0%

Prince George’s 748 712 5.1% $223,870 $190,299 17.6%

Queen Anne’s 58 42 38.1% $392,124 $361,740 8.4%

Somerset 18 8 125.0% $102,586 $93,188 10.1%

St. Mary’s 108 77 40.3% $304,420 $279,087 9.1%

Talbot 53 37 43.2% $554,870 $289,432 91.7%

Washington 132 98 34.7% $208,864 $159,680 30.8%

Wicomico 80 71 12.7% $145,673 $157,774 -7.7%

Worcester 154 142 8.5% $274,379 $241,357 13.7%

tOtAl 6,481 5,123 26.5% $335,655 $307,400 9.2%

Figures reflect resales and new properties. Residential resales are reported by MRIs® and local boards MLs systems.

The resilience of Maryland’s housing market in the face of accelerating headwinds is certainly remarkable. Despite the shutdown of the federal government, October and November may end up being a respectable real estate season, at least judging from available leading indicators. Months of inventory had declined to 5.1 months by september, down from 6.0 months one year earlier. Lower inventory implies stable to rising prices, which in turn induces prospective buyers to remain interested in residential markets. Moreover, through september, pending sales were still higher on a year-over-year basis. statewide in september there were 5,997 pending sales, about 7 percent better than the 5,609 pending sales recorded one year earlier.

Nevertheless, these summer statistics do not reflect the impact of the federal government shutdown that began on October 1st, which not only affects local consumer confidence and the local labor market via layoffs and furloughs, but also impacts mortgage financing, as prospective buyers find themselves unable to obtain proof of income or other forms of key information from the Internal Revenue service or the social security Administration. Anecdotal evidence suggests that home showings are down by more than seasonal levels, implying that the discord in Washington, D.C. is now more forcefully affecting local housing markets.

Looking carefully at the numbers, one can spot nascent losses of momentum. In the aggregate, active inventory of unsold homes in Maryland has actually risen during the year ended in september, from 26,746 units to 26,850 units. Moreover, while prices are still rising on a year-over-year basis, the pace of gains is softening. In August, average sales price was up 6.4 percent. One month later, the corresponding statistic was just 2.2 percent, roughly equivalent to the general level of inflation for that period. Fifteen jurisdictions reported higher average prices, while thirteen reported higher median prices in september, but momentum appears to have slowed just a bit.


August 2013 vs. 2012Units AverAge Price

county 2013 2012 % change 2013 2012 % change

Allegany 50 26 92.3% $115,643 $95,196 $95,196

Anne Arundel 683 545 25.3% $367,111 $367,710 $367,710

Baltimore City 593 471 25.9% $181,313 $161,766 $161,766

Baltimore County 763 682 11.9% $264,557 $247,842 $247,842

Calvert 120 81 48.1% $325,923 $307,248 $307,248

Caroline 22 21 4.8% $136,295 $166,504 $166,504

Carroll 182 154 18.2% $310,973 $302,747 $302,747

Cecil 88 70 25.7% $218,519 $231,631 $231,631

Charles 185 156 18.6% $273,477 $236,914 $236,914

Dorchester 32 15 113.3% $149,634 $232,817 $232,817

Frederick 312 259 20.5% $289,838 $291,091 $291,091

Garrett 42 32 31.3% $321,702 $320,684 $320,684

Harford 268 229 17.0% $259,655 $263,386 $263,386

Howard 316 324 -2.5% $435,757 $407,079 $407,079

Kent 21 18 16.7% $319,107 $291,389 $291,389

Montgomery 1,108 934 18.6% $516,678 $472,006 $472,006

Prince George’s 709 702 1.0% $222,359 $192,613 $192,613

Queen Anne’s 56 47 19.1% $399,464 $383,864 $383,864

Somerset 13 10 30.0% $106,771 $117,140 $117,140

St. Mary’s 92 94 -2.1% $280,620 $299,676 $299,676

Talbot 41 39 5.1% $487,142 $484,597 $484,597

Washington 136 107 27.1% $203,390 $186,591 $186,591

Wicomico 82 69 18.8% $168,430 $171,935 $171,935

Worcester 160 145 10.3% $281,012 $249,357 $249,357

tOtAl 6,074 5,230 16.1% $319,930 $300,805 6.4%

Figures reflect resales and new properties. Residential resales are reported by MRIs® and local boards MLs systems.

Looking AheadTo date, the housing market has managed to retain much of its momentum. But now it faces a new set of headwinds, many of them coming from dissonance in Washington, D.C. For now, the federal government is open and America’s full faith and credit remains intact. However, the latest budget deal only secures an operational federal government through mid-January and further debt ceiling discussions are likely thereafter. All of this means that uncertainty will remain elevated among prospective buyers and financiers. One predicts that the Federal Reserve will remain active in an effort to counter the impacts of this uncertainty, particularly given the nominated Federal Reserve Chair’s apparent willingness to continue to support a low interest rate regime.

Anirban Basu, Chairman & CEO, Sage Policy Group, Inc.

the resilience of Maryland’s

housing market in the face

of accelerating headwinds is

certainly remarkable.


How Much Do You Know about MRIS Core?7 ½ MRIS Resources You Should Explore

Maryland Real Estate Commission News K A T H E R I N E C O N N E L L y

MRIS is always working to improve and add to our suite of MRIS Core products and services. While most customers are familiar with Matrix and Keystone, many more MRIS Core products are included as part of your MRIS subscription and the list is growing!

What Are the MRIS Core Products?In addition to Matrix and Keystone, you also have the following products available to you at no additional cost:

1 Document Management—Upload documents directly to the listing using Document Management. Control who accesses your

documents by setting them to Public (available to all MRIs customers) or Private (available only to MRIs customers within your office).

2MRISFax—Easily send large documents via the MRIsFax tool. you can send the faxed document as a PDF to up to 10 email recipients in a single

transmission!

3 MRIShomes™ Mobile App—Go mobile with MRIs! Login to the MRIshomes™ mobile app with your MRIs ID and password to view additional property

information such as list price history, days on market, distressed property information, showing instructions, agent remarks and more. GPs search enables you to search listings wherever you are!

4 ListHub—Brokers, syndicate your listings with the nation’s largest online listing distribution and marketing network. With the ListHub dashboard,

control and filter how and where your listings get published.

5 RatePlug—Deliver interactive, real-time mortgage programs, payment and qualifying information to your clients. RatePlug provides them with a one-

stop shopping experience for finding the right home and financing.

6 RBI Market Statistics (RBIntel.com)—Position yourself as the market expert in your area with up-to-the-minute market stats straight from the MLs.

you can even embed charts and videos on your website or blog.

7 Short Sale Center—Navigating the short sale process can be difficult, but having access to the right information and resources can help. The

MRIs short sale Center combines the tools you need to expedite the short sale process, prospect for listing leads and become the distressed property expert in your area.

Learn More in ½ the Time with MRIS-u!Training for each of the MRIs Core products is available by visiting MRIS.com/Training. For those who have interest in training but don’t have much time in your schedule for classes, videos of our most popular classes and quick product tutorials are available 24/7 on mrisTV.com.

More MRIS Core Product and Enhancements Are Coming Soon!From the MRIs MarketingCenter (powered by Imprev) to the ability to edit listings right from the MRIshomes Mobile App, there is a wealth of new products coming soon. One of the best ways to stay current with MRIs news, product sneak peeks and exclusive promotions and events is to interact with us on our social media channels. If you haven’t connected with us on MRIsblog.com, Facebook or Twitter, you might miss out on what’s happening at MRIs. Visit us at MRISblog.com, like MRIS on Facebook, and follow @MRIS_REal_News on Twitter to keep in touch with MRIs!


Create your own blogExpress your ideas to the world and invite responses. This service is high quality, and it’s free!*

https://www.blogger.com/start

SNIPPETS

ANywhOAnywho is a great online phone book and peoplefinder sponsored by AT*T. Use the yellow Pages for businesses, the White

Pages for people, and the Reverse Lookup if all you have is a phone number.*

http://www.anywho.com/whitepages

The Internet Movie Database (IMDB)The Internet Movie Database (IMDB) is a movie-lover’s paradise. Discover every movie, your favorite actor/actress has

been in, discover every actress/actor in your favorite movie! All the facts about all the films will be found here.*

http://www.imdb.com

Slideshare.comUpload and share your PowerPoint & Keynote presentations, Word & PDF documents on slideshare. Add audio to make a webinar. Capture leads with your presentations. Tutorial available.

Issuu.com Browse through magazines, artist’s

portfolios, or upload your own created documents. A great place to gather publications and discuss topics you find interesting. Check it out!

http://fiverr.com Five Bucks doesn’t get you much anymore, but here’s a website www.fiverr.com where you can, for example, find someone to plan what to do for a day in Chicago; create two professional web banner ads for $5; or create a custom Facebook photo string for your profile for $5. someone will even make a friendship bracelet for $5, or how about a pair of earrings of Marilyn Monroe’s likeness on guitar pics. Amazing!


The sites are presented for information only. MAR is not responsible for

the content of external websites and does not endorse them or their

functionality. Although we make every effort to ensure these links are

accurate, up to date and relevant, MAR cannot take responsibility for pages

maintained by external providers. Views expressed by individuals and

organizations on their own websites are not necessarily those of the

Maryland Association of REALTORs®.

If you have a ‘ridiculously useful website’ to share with

fellow REALTORS®, email: jermaine.hawkins@

mdrealtor.org

Pic FontHave you ever wanted to add text on top of a photo for a property you have listed? Here’s a fun FREE Web site you can use to upload your photo, add a line or two of text, then download back to your computer to use in documents, flyers the Web and more. Visit: www.PicFont.com

Contributed by John D. Mayfield — The business Tech Guy — www.BusinessTechGuy.com

SEE HOW MUCH YOU CAN SAVE.

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SEE THE SAVINGS


Pocket Listings—What You Need to Know

From the Hotline C H A R L E s A . K A s K y , E s Q U I R E

Q. I have heard a lot of discussion recently about “pocket listings.” I’m not sure what that means. Can you explain the term? If a seller and broker enter into a

listing agreement but agree to delay putting the information into the MLS while the seller prepares the property for showing, is that a pocket listing?

A. your questions are timely and raise issues that have been the subject of much controversy with the real estate industry in recent months. Although this is not a new concept, “off-MLs”

or “pocket listings” are properties that are marketed without being listed for sale on the MLs. The term refers to the fact that the listing is being “hidden” in the broker’s pocket.

sometimes, a listing is merely referred to as a pocket listing in the short time between when it is secured by the sellers’ agent and the time it appears on the MLs. A listing can sell before the broker completes MLs paperwork, and the listing sold to someone who knew about it outside of the MLs. sometimes, this happens with an offer made during a “prelisting” period.

The National Association of REALTORs® has not defined what constitutes a pocket listing, nor does it have an official policy regarding the practice. But REALTORs® are bound by the Code of Ethics to get the best deal for their client. sellers should be cautioned that restricting a large pool of eligible buyers from knowledge of the sale might reduce the final sale price.

There are objections to some of the ways these so-called pocket listings are used by some real estate professionals. some practitioners argue that pocket listings violate local MLs rules. Others worry that keeping properties from the MLs may skew comparable listing numbers for appraisers. still others worry that pocket listings could lead to abuses of single and dual agency relationships, if not properly handled.

As a practical matter, home sellers and listing agents/brokers must be aware that the decision to forego placing the property in the MLs can adversely affect their goal of getting the best price possible for the property. Active marketing to the widest possible audience has long been recognized as the most effective means to accomplish this goal. Any practice that undermines this principle can have far-ranging consequences.

Brokers should also consider the risk management implications of the practice. On one hand, the allure of earning both the listing and selling sides of the commission is strong. On the other hand, Maryland law governing dual agency is somewhat complex compared to other states and must be strictly followed.

Consider, too, that sellers sometimes find out later that their home could have, and probably should have sold for a higher price, leaving the broker exposed to allegations that the broker breached his fiduciary duty to the seller. A recent article from California illustrates this point, without addressing it. A young couple purchased a pocket listing for $640,000 and within 4 months a smaller, slightly more updated house down the block went on the market for $100,000 more. What would a reasonable seller’s reaction be to the news that she may have left as much as $100,000 “on the table” because the property was marketed only to buyers selected by the listing agent?

To answer your second question directly, there is nothing inherently illegal or unethical about the practice you propose, but it must be done with the utmost care that it, and all actions you take, are truly in the best interest of your client and with the client’s informed consent. That means that the seller is given the pros and cons of each choice. you should take care that this not be a subterfuge to undermine the integrity of the cornerstone of the industry – cooperation with other brokers to secure the best price and terms for the client. Charles A Kasky, Esquire, Senior Vice President, Maryland Association of REALTORS®.

EXIT Mid-Atlantic Region (DE/DC/MD/WV), 60 Algonquin Road, North East, MD 21901 • 410-287-9000 • [email protected] intended to solicit broker owners already under contract. This is not an offer to sell or solicitation of an offer to buy a franchise. An offer is made by prospectus only.

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