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January/February 2003 Newsletter
You Be The JudgeCase #1-5: Promotion of Client's Interests (Originally Case #7-6. Revised May, 1988. Transferred to Article 1 November, 1994.) Client A gave an exclusive listing on a house to REALTOR® B, stating that he thought $132,500 would be a fair price for the property. REALTOR® B agreed and the house was listed at that price in a 90-day listing contract. REALTOR® B advertised the house without response, showing it to a few prospective buyers who lost interest when they learned the price. In a sales meeting in his office, REALTOR® B discussed the property, advised his associates that it appeared to be overpriced, and that advertising and showing of the property had proved to be a waste of time and money. After six weeks had gone by without a word from REALTOR® B, Client A called REALTOR® B's office without identifying himself, described the property, and asked if the firm was still offering it for sale. The response he received from one of REALTOR® B's nonmember associates was: "We still have the house listed, but there is little interest in it because, in our opinion, it is overpriced and not as attractive a value as other property we can show you." Client A wrote to the Board of REALTOR® complaining of REALTOR® B's action, charging failure to promote and protect the client's interest by REALTOR® B's failure to advise the client of his judgment that the price agreed upon in the listing contract was excessive, and by REALTOR® B's failure to actively seek a buyer. In a hearing on the complaint before a Hearing Panel of the Board's Professional Standards Committee, REALTOR® B's response was that Client A had emphatically insisted that he wanted $132,500 for the property; that by advertising and showing the property he had made a diligent effort to attract a buyer at that price; that in receiving almost no response to this effort he was obliged to conclude that the house would not sell at the listed price; that in view of the client's attitude at the time of listing, he felt it would be useless to attempt to get Client A's agreement to lower the listed price; and that he had instructed his staff not to actively market the property at that price. The Hearing Panel concluded that REALTOR® B was in violation of Article 1; that he had been unfaithful in his obligations in not advising his client of his conclusion that the property was overpriced, based on the response to his initial sales efforts; and in withholding his best efforts to bring about a sale of the property in the interests of his client.
NAR UpdateNAR APPLAUDS PASSAGE OF LEGISLATION REAUTHORIZING FLOOD INSURANCEThe National Association of REALTORS® applauded Congress for passing legislation that reauthorizes the Federal Emergency Management Agency's national flood insurance program, which provides more than 90 percent of the flood insurance policies in the U.S. The national flood insurance program expired Dec. 31, 2002, when Congress failed to reauthorize it before adjourning last November. The legislation, which retroactively reauthorizes the program for one year, was introduced earlier this week by U.S. Reps. Michael Oxley (R-Ohio) and Barney Frank (D-Mass.). The bill passed the House and the Senate under unanimous consent, and now heads to President Bush for his signature. NAR led a broad coalition of industry groups in pushing for the program's immediate reauthorization. Flood insurance is usually required by lenders for loans on commercial and residential properties in areas where flooding is common. "We applaud Congress for swiftly passing this vital piece of legislation that reauthorizes the national flood insurance program and eliminates any gaps in coverage retroactive to January 1 this year," said NAR President Cathy Whatley, who met with FEMA officials last month to clarify the agency's guidelines during the interim. "This is great news for hundreds of thousands of homeowners and homebuyers. Everyone involved in the housing industry can now breathe a sigh of relief that it's back to business as usual when it comes to flood insurance."
MAR NewsREALTOR® License Plates Available through MARPlate Information: Please find listed below the answers to the most frequently asked questions. These forms are NOT available at the MVA Office
IT IS YOUR RESPONSIBILITY TO RETURN YOUR PRESENT PLATES TO THE MVA UPON RECEIPT OF YOUR NEW MAR PLATES. To get your license plate form, call Cindy Sellers at the Maryland Association of REALTORS® at (800) 638-6425 or email cindy.sellers@mdrealtor.org. Health Insurance available through MAR The Benefits available to you if you are a member of MAR include: MEDICAL — MAR Association Plans (Open Enrollment Twice a Year and Within 60 Days of becoming a Member of MAR)
NON-NETWORK PLANS
NETWORK PLAN
DENTAL — MAR Association Plans
VISION — MAR Association Plans (Open Enrollment within 60 days of becoming a Member of MAR)
LIFE & AD&D — MAR Association Plans (Open Enrollment Year Round) United States Life — Offers Guarantee Issue Life and AD&D up to $40,000, with additional Life Benefits available with medical underwriting. 1 Definition of Eligible MAR member: You must be a current dues paying member of the Maryland Association of REALTORS®. Non-member licensees are not eligible. Affiliate members who pay MAR dues are eligible. Employees of MAR members, and local Board/Association staff, are also eligible. Once accepted into a MAR benefit plan, if you have been a MAR member for at least three years, upon retirement, disability, or leaving the real estate industry you will continue to have access to any and all benefit plans being offered to active MAR Members. Learn more about these benefit programs by contacting John Lang, Benefit Choices at 410-666-9500.
President's Message, by Ron AndersonYOU ARE A REALTOR®! After various evolutions of training; licensing course, company version of how to do Real Estate, and finally an office indoctrination where you are told how the phone system works and where the supplies are...there you are ready to sell, sell sell! Some experienced agent has probably advised you to have money for six months of your bills in the bank because starting "your business" will be tough. You have been told to "work the phones"(develop your telephone skills), "work your SOI"(ask those you know for the sale), mail to your preferred market place (spend money you haven't earned) and oh by the way....pull expired listings, withdrawn listings, and find out where the For Sale By Owners (FSBO's) are and prepare packages and deliver them so you have a chance to interview for business and if you get a sale or listing, you too are in business for yourself! A good office manager will have a support network to assist you with time, mentoring skills and on occasion, a lead or two. There is no other business I know of that requires you to work on the big "IF". IF you contact a lead who qualifies to purchase, IF you can verify the information the lead provides, IF you get them to the office, IF you find them a home they like and IF they are willing to write an offer that can succeed,(repeat as necessary), IF the seller agrees to the terms, IF the inspections are o.k. (results can be negotiated successfully), IF all the contingencies are met, IF one of the principals doesn't get remorse, and IF you can get all parties to the settlement table, then you are a Realtor and eligible to collect your commission check. After all of this, the one thing you think you have learned is that YOU are your biggest asset. You weren't alone, but at times it sure seemed like it. That is why you are called an independent sub-contractor. Let's see.... There is the mortgage person, the title person, the inspection person, the termite person, the insurance person, the office assistant, your manager, your mentor, the processors for the mortgage person, the processors for the title person and all the people in the office who took your telephone messages or transferred the call to your voice mail, or answered a question or two about procedures or the listing or the time involved for a transaction. Look around! Learn, and when it is your turn, help someone else succeed. Success breeds success and that agent who has a good annual production number is making the telephone ring so you too can experience success! After all — you are a REALTOR®!
Save the date!The 5th annual Real Estate Now Convention will be held at the Anne Arundel Community College on Wednesday, June 4th, 2003. This award winning, all-day event includes Continuing Education, a Trade Show with over 50 vendors, a continental breakfast, lunch and cocktail party — all for one price. Save the date — and watch for more information on the Association's website — www.aacar.com!
New Board of Directors InstalledThe Installation of the 2003 Board of Directors and Officers of the Anne Arundel County Association of REALTORS® and the Anne Arundel Chapter of the Women's Council of REALTORS® was held recently at Yellowfin's Restaurant in Edgewater. Many braved the wintry weather conditions as Ron Anderson become the new President of AACAR, and Barbara Zietz became the new President of WCR. Gloria Farrar, President of the Maryland Association of REALTORS® presided over the installation of the AACAR Board of Directors, and Joanne Poole, Secretary of the Maryland Association of REALTORS®, presided over the Installation of WCR officers. Also attending were Jan Hayden, President of the Greater Baltimore Board of REALTORS®, Jody Landers, Executive Vice President of the Greater Baltimore Board of REALTORS®, Mary Antoun, Chief Executive Office of the Maryland Association of REALTORS® and Jann Clarke, Executive Officer of the Southern Maryland Association of REALTORS®. Lee Hatfield, the 2001 AACAR REALTOR® of the Year, presented Connie Morrissette with a plaque recognizing her as the 2002 REALTOR® of the Year, and Tom Quattlebaum,the CEO of AACAR, presented Kim Welty, of the Capital Newspapers, the 2002 Affiliate of the Year award.
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