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July/August 2003 Newsletter
President's Message, by Ron AndersonWho's in Charge?The answer is a one word answer – YOU! This is YOUR association and as such it is also YOUR responsibility. Awesome to think about, invigorating to participate, and profitable in soooo many ways! Your Anne Arundel Association of REALTORS® (AACAR) needs YOU! I have been making office visits over the past months to give information, gather opinions and generate ideas that will help AACAR. I have been most impressed with the Talent (yes, with a capital "T") this Association has to bring to bear on key issues, tough jobs and the day to day business of making sure we have a handle on the obstacles we face to be successful Realtors! Everyone brings something to the "table" that we need and can be used. Your time is valuable to you, but probably more valuable to the rest of us. Donate your time to a committee and give us your strength, your knowledge, your passion and your dedication to getting the job done right! We are about to send out our 2004 Committee sign up forms. AACAR would appreciate your talent and time to help our Association move forward. I personally got started on the Education Committee. I will list the committees here so you can start the process of helping the Association and therefore helping yourself. The most popular committees requested are: The Professional Standards Committee and The Grievance Committee. There are certain requirements to be met prior to being selected to both committees. Screening is done to ensure "new blood" and cross sections of the various brokers are represented. The committees that need every one's attention are: REALTORS® Political Action Committee (RPAC), REALTORS® Community Service Committee and the Convention Committee. Trust me, there is something for everyone to do. Give it a try, you'll like it! The committees that are extremely interesting and would like to see fresh faces and new ideas are Property Management and Forms. There are two committees that are time intensive and require the dedication and interest of it's members. The Legislative (County) Committee meets at the call of the Chairperson and will be involved with County Council bills and County Executive bills and decisions that effect the Real Estate business and personal property rights. The Legislative (State) Committee is in session from January to April and meets almost every Monday (when the state legislature is in session) and requires a variety of subject material expertise. If you know commercial, or property management, or mortgage banking, or zoning and planning, or taxation or title work - you get the picture...almost any discipline in Real Estate is necessary for that committee to be successful. We now come to the last committee of record. This is the Task Force Committee. This is a committee that is formed and assigned tasks by the President of the Association as needed and also covers a multitude of talents, knowledge and disciplines. There is a new committee under development. The International Committee. Would you be interested in helping the committee look into ways to bring international businesses into Anne Arundel County and other international topics? We are re-writing some of the requirements of a few committees. The basic core is the same and the Association needs your talents. Step up and donate some time and energy to ensure we on "top of our game". After all, who's in charge? YOU!
You be the JudgeThe following case interpretation illustrates Standards of Practice 1-6 and 3-4. REALTOR A listed Seller S's house. He filed the listing with the MLS and conducted advertising intended to interest prospective purchasers. Seller S's house was priced reasonably and attracted the attention of several potential purchasers.Buyer B learned about Seller S's property from REALTOR A's website; called REALTOR A for information; and was shown the property by REALTOR A several times. Buyer X, looking for property in the area, engaged the services of REALTOR R as a buyer representative. Seller S's property was one of several REALTOR R introduced Buyer X to. After the third showing, Buyer B was ready to make an offer and requested REALTOR A's assistance in writing a purchase offer. REALTOR A helped Buyer B prepare an offer and then called Seller S to make an appointment to present the offer that evening. Later that same afternoon, REALTOR R called REALTOR A and told him that he was bringing a purchase offer to REALTOR A's office for REALTOR A to present to Seller S. REALTOR A responded that he would present Buyer X's offer that evening. That evening REALTOR A presented both offers to Seller S for his consideration. Seller S noted that both offers were for the full price and there seemed to be little difference between them. REALTOR A responded, "They're both good offers and they'll both net you the same amount." Seller S asked about the feasibility of countering one or both of the offers. REALTOR A agreed that was a possibility but noted that countering a full price offer could result in the buyer walking away from the table. Besides, he reminded Seller S, production of a full price offer triggered REALTOR A's entitlement to a commission under the terms of their listing agreement. Seller S acknowledged that obligation but expressed regret that, faced with two full price offers, there was no way to increase the proceeds he would realize from the sale of his property. "I'll tell you what," said Seller S, "if you'll reduce your commission, I'll accept the offer you procured. While you'll get a little less than we'd agreed in the listing contract, you'll still have more than if you had to pay the other buyer's broker." Seeing the logic of Seller S's agreement, and realizing that he and the seller were free to renegotiate the terms of their agreement, REALTOR A agreed to reduce his commission by one percent. Seller S, in turn, accepted Buyer B's offer and the transaction closed shortly thereafter. Upset that his purchase offer hadn't been accepted, Buyer X called Seller S directly and asked, "Just to satisfy my curiosity, why didn't you accept my full price offer to buy your house?" Seller S explained that he had accepted a full price offer produced by REALTOR A because of REALTOR A's willingness to reduce his commission by 1%. Buyer X shared Seller S's comments with REALTOR R the next day. REALTOR R, in turn, filed an ethics complaint alleging that REALTOR A's commission reduction had induced Seller S to accept the offer REALTOR A had produced; that REALTOR A's commission reduction made his presentation of the competing offers less than objective and violated Article 1, as interpreted by Standard of Practice 1-6; and that REALTOR A's failure to inform him of the change in his (REALTOR A's) commission arrangement violated Article 3, as interpreted by Standard of Practice 3-4. At the hearing REALTOR A defended his actions stating that he had said nothing inaccurate, untruthful, or misleading about either of the offers; and that he understood that his fiduciary duties were owed to his client, Seller S, and that he and Seller S were free to renegotiate the terms of their listing agreement at any time. REALTOR A acknowledged that by reducing his commission with respect to an offer he produced, he might arguably have created a dual or variable rate commission arrangement of the type addressed in Standard of Practice 3-4. He pointed out that if that commission arrangement had been a term of their agreement when the listing agreement was entered into, or at some point other than Seller S's deciding which offer he would accept, then he would have taken appropriate steps to disclose the existence of the modified arrangement. He noted that Standard of Practice 3-4 requires disclosure of variable rate commission arrangements "as soon as practical" and stated that he saw nothing in the Standard that required him and his client to call "time-out" while the existence of their renegotiated agreement was disclosed to other brokers whose buyers had offers on the table-or to all other participants in the MLS. He acknowledged that if the accepted offer had subsequently fallen through-and Seller S's property had gone back on the market with a variable rate commission arrangement in effect (where one hadn't existed before)-then the existence of the variable rate commission arrangement would have had to have been disclosed. But, he concluded, the accepted offer hadn't fallen through so disclosure was not feasible or required under the circumstances. The hearing panel agreed with REALTOR A's reasoning and concluded that he had not violated either Article 1 or Article 3.
Real Estate NOW 2003A record-breaking number of people attended the 2003 Real Estate Now Convention held June 4, 2003 at the Anne Arundel Community College. Over 500 people from AACAR and surrounding Associations took Continuing Education classes, and enjoyed the trade show, lunch and cocktail party. We would like to thank Jacque Lawrence for volunteering to help the staff at registration and for staying to see the Convention through. AACAR would like to give special thanks Linda Showalter of Building Specs, Chairperson of the Convention Committee, for always going above and beyond to make Real Estate Now such a huge success! We would also like to thank the following Convention Committee members for their dedication and hard work:
Michelle Mathews of AccuBanc MortgageWe extend our thanks to our Corporate Sponsors, for it is through their generosity that we are able to present this event. They are: Capital-Gazette Newspapers Last, but not least, we can't forget to thank our Exhibitors, for without them, we could not have a Trade Show:
AACAR Members Graduate from MAR Leadership AcademyThree members of the Anne Arundel County Association of REALTORS® were among twenty-one graduates from the Maryland Association of REALTORS® (MAR) Leadership Academy honored at ceremonies held recently in Annapolis. They are:
The MAR Leadership Academy was formed by REALTORS® who understand the important role they play in their community and the need to enhance the leadership skills, knowledge, and competencies of fellow REALTORS® interested in making a difference in their personal lives and in their communities. The Anne Arundel County Association of REALTORS® is a strong advocate and recognizes the importance of this program to our Association's future. Included in the curriculum were courses on organizational leadership, communications and public relations, strategic planning, legislative and government affairs, parliamentary procedure and association governance and economic business trends.
What is RPAC, and what does it do for me?Those who attended the 5th Annual Real Estate Now Convention may have noticed some attendees were wearing special name badges imprinted with "RPAC Leadership Club". That's because we wanted to do something special to acknowledge the Leadership Club. The Leadership Club consists of REALTORS® who have donated at least $99.00 to RPAC. Okay, some of you are asking, "So what is RPAC?" Well, RPAC is the REALTORS® Political Action Committee. A Political Action Committee (PAC) is a popular term for a political committee organized by like-minded people for the purpose of raising and spending money to elect and defeat candidates. The PAC's money must come from voluntary contributions from members rather than the member's dues treasury. PACs represent business, labor or ideological interests. PACs can give $5,000 to a candidate committee per election (primary, general, run-off or special). They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC. PACs may receive up to $5,000 from any one individual. Now you're asking, "What does that have to do with me? I just want to sell Real Estate, I don't want to get involved in politics!" Well, the real estate industry relies on elected officials at every level – nationally, statewide and locally – to either pass or fail legislation that affects the real estate transaction process. Nationally, RPAC is the muscle behind NAR. RPAC represents over 352,000 politically active REALTORS® that members of Congress want as their friends. If you decide to contribute, you ask - how will your contribution be used? One hundred percent of your contribution is used to elect pro-REALTOR® candidates: 70% remains in the state to be used in state and local elections. 30% of your contribution will be forwarded to National RPAC to fund key U.S. House and Senate races. Until our state PAC reaches its RPAC goal, 30% is sent to National RPAC to support federal candidates and after the state PAC reaches its RPAC goal it may elect to retain your entire contribution for use in supporting state and local candidates. RPAC is neither a Republican nor a Democratic organization. Your contribution to RPAC is a vote for a pro-REALTOR® Congress, regardless of political party. Anne Arundel County is full of governmental red tape, and Maryland is trying to make you change your business cards and advertisements - does the National RPAC contribute to state or local candidates? Under the cooperative agreements in effect between the National RPAC and the state association's Political Action Committees, the responsibility for making contributions to federal candidates is assigned to the national RPAC, while state association's Political Action Committees decide which state and local candidates to support. Maryland's RPAC Trustees determine - with local REALTORS® input - which candidates receive our RPAC support. Okay, so now you're wondering where all that RPAC money goes. At the National level, RPAC works for:
At the State level, RPAC works to:
At the Local level, RPAC has:
So now you're wondering whom it is that is lobbying for you. Just who is the person "shmoosing" with the politicians, trying to get them to vote the right way on issues that affect the real estate industry? AACAR has Robert Johnston (V.P. of Government Affairs) lobbying on your behalf. If you have any questions about recent or pending legislation, you can reach Robert Johnston at 410-544-4554 or Robert.Johnston@aacar.com. If you have any questions about RPAC, you can contact Joan Russell, AACAR RPAC Chairperson at 410-721-0103.
GRI GraduatesThe Anne Arundel County Association of REALTORS® is proud to announce that we have four new GRI graduates in our membership.Graduate REALTOR® Institute (GRI) Designees have made the commitment to provide a high level of professional services to their clients. The GRI curriculum incorporates a common body of knowledge for progressive real estate professionals. Any person awarded the GRI designation must be a member of the NATIONAL ASSOCIATION OF REALTORS® and must maintain that membership to retain the designation. Those members are: Stephanie Hodges of Long & Foster in PasadenaCongratulations to you all! New Affiliate Members Larry Wolf, Jr., Bugs Bee Gone Pest & Termite, Parkville Douglas Schafer, Rid Termite & Pest Control, Inc, Glen Burnie
New REALTOR® Members
AACAR Cooks! CorrectionFor those of you who bought the AACAR Cooks! Cookbook, one recipe was incomplete – "Sandy's Luscious Lemon Bars", submitted by Sandy Mosso, of Champion Realty. The correct recipe is: Sandy's Luscious Lemon Bars
2 cups all-purpose flour Mix the 2 cups flour and confectioner sugar. Cut in butter or margarine until mixture clings together. Press into a 13 x 9" baking pan. Bake at 350ş for 20 to 25 minutes or until lightly browned. Beat together eggs, granulated sugar and lemon juice. Add ˝ cup flour and baking powder; stir into egg mixture. Pour over baked crust. Bake at 350ş for 25 minutes longer. Sprinkle with additional confectioner's sugar. Cool, and then cut into bars.
Spring Membership MeetingThe Spring Membership Meeting was held recently at the Chartwell Country Club in Severna Park. During the meeting, President Ron Anderson announced the 2003 AACAR Affiliate of the Year. Linda Showalter of Building Specs in Stevensville was named Affiliate of the Year. Linda is a one woman "powerhouse", who is involved in various committees and groups, most notably the Convention Committee which she has chaired for three years. The 2002 AACAR REALTOR® of the Year, Connie Morrissette of Coldwell Banker Residential Brokerage in Annapolis, announced the 2003 AACAR REALTOR® of the Year. Joel Pautsch of Re/Max Classic in Pasadena was named REALTOR® of the Year. Joel has given so much time and energy to various projects for AACAR, most notably working on the Supra key issue. Congratulation to both Joel and Linda! Don Kyle, of MRIS, gave a demonstration of the new MATRIX System which will be replacing REALTOR® in the near future and members of the Nominating Committee were chosen. Very special thanks go out to Dan MacGloan, 1st Chesapeake Home Mortgage, LLC, who was the sponsor for this meeting.
Development of NAR's VOW PolicySubsequent to publication of the proposal developed by the Virtual Office Web site ("VOW") Work Group in mid-March, 2003, REALTORS®, MLS administrators, association executives and others voiced a number of comments, questions and concerns about that proposal. On April 16 the Work Group met to discuss the issues raised. The final policy differs from earlier proposals in that it incorporates a selective and a blanket opt-out right that permits listing brokers to make independent business decisions whether they will consent to display of their listings on others' VOWs; establishes that, as a matter of local MLS discretion, certain restrictions may be imposed on VOWs if equivalent restrictions are imposed on display/distribution of listings in other contexts (e.g. in participants' offices, by mail, by fax, or by e-mail); and included other modifications/refinements intended primarily to clarify or otherwise improve the initial policy proposal as it has been introduced and discussed across the country.
What is a Virtual Office Website ("VOW")?
What's the difference between a VOW and an IDX site? First, the data fields that MLSs permit to be shown can differ between IDX sites and VOWs. Generally, information available on a VOW will be "richer" or more comprehensive. For more information on NAR's VOW policy, go to www.realtor.org/realtororg.nsf/pages/VOWHome.
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