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Official publication for the Greater Capital Area Assocation of ReAltORs® may/june 2014www.gcaar.com

Grand Opening Celebration - p. 12

GCAAR Cares - p. 5

REBUILDING TOGETHER®GCAAR rebuildsa home in DC- page 6

Come to REALTOR® Fest - p. 25

Affiliate Spotlight: Chris Darby p. 3

ii Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 1

Capital Area REALTOR® (USPS 017-467) is published five times a year by the Greater Capital Area Association of REALTORS®, 15201 Diamondback Drive, Suite 100, Rockville, MD 20850.

Periodicals postage paid at Silver Spring, MD. Member subscriptions account for $10 of each member’s annual dues. Annual subscriptions are available to non-members for $25. Subscription inquiries may be sent to Capital Area REALTOR® at the above address.

POSTMASTER: Send address changes to Capital Area REALTOR®, ATTN: GCAAR, 15201 Diamondback Drive, Suite 100, Rockville, MD 20850.

The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the informa-tion contained herein. The opinions expressed herein do not necessarily reflect the opinion of the officers, directors, or staff of the Greater Capital Area Association of REALTORS®.

The Greater Capital Area Association of REALTORS® accepts submissions of articles and photographs and the items become the property of the Greater Capital Area Association of REALTORS®. The publisher reserves the right of full editorial authority and to decline publication of any article not deemed proper. Deadline for submissions, including camera-ready advertising, is the first of the month prior to publication. Reprint with permission only. Reprints may be obtained by contacting the Greater Capital Area Association of REALTORS® at 301.590.2000; via fax at 301.590.2248; or send an e-mail to bbanks@gcaar.com.

REALTOR® is a registered collective membership mark that identifies and may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its Code of Ethics.

Copyright© 2014 by the Greater Capital Area Association of REALTORS®.

All rights reserved.

15201 Diamondback Drive, Suite 100 • Rockville MD 20850Phone: 301.590.2000 • Fax: 301.590.2248 • www.gcaar.com

Follow us on Facebook: facebook.com/GCAAR2

Follow us on Twitter@GCAARNow

Follow us on LinkedIn/in/GCAAR

Grand Opening Celebration page 12 GCAAR On the Go! page 15 YPN Event page 13

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may/june 2014

in every issue2 Ask the President

5 GCAAR Cares

8 NAR Director’s Report

9 Technology

10 Membership Corner

10 Meet Your GCAAR Committees

16 Housing Statistics

25 RPAC

26 Public Policy

28 Legal Hotline

30 MRIS

31 Education Schedule

features3 Affiliate Spotlight

3 Students Illustrate the Importance of Fair Housing

4 Women’s Council of REALTORS®

12 Grand Opening Celebration

13 Working with the Global Client

13 YPN Happy Hour Benefits Local Non-Profit

14 GCAAR Hosts Montgomery County Executive Democratic Forum

14 Bonnie Casper Speaks at Montgomery County Affordable Housing Conference

15 GCAAR on the Go

20 2014 MAR Leadership Academy

22 GCAAR Welcomes New Emeritus Members

24 Home Seller Generational Trends

25 Come to REALTOR® Fest

board of directors

Greg Fordpresident

Suzanne Des Maraispresident-eleCt

Michael McGreevyiMMediate past

president

Michael MoranCHieF eXeCUtiVe

OFFiCer

Koki AdasiDavid Bediz

Thom BrockettJamie ColeyTom DaleyDorie Glass

Peg MancusoseCretarY

Tim KnoblochtreasUrer

Capital Area REALTOR® Magazine

Jacque GrenningSally Hamidi

Gwen HendersonVicky Lobos-Kirker

Hildy PollardPat Weed

directors

ask the president

Q: I wanted to attend the Grand Opening event on April 23, but I had a scheduling conflict. Can I still get an insider’s tour of our new facility? Does GCAAR have any spaces available for rent?

A:Thanks for your question. We are excited to be in our new space and invite all members to come in and check it out! The store and member service areas are open Monday – Friday, 8:30 a.m. – 5 p.m., and Saturday, 10 a.m. – 3 p.m. If you’d like a behind-the-scenes tour of the offices, please contact Sandy Hargis to make arrangements (shargis@gcaar.com or 301.590.8773).

GCAAR does have three rooms available for rent; the largest being our state-of-the-art 2,300 square-foot classroom that seats 80 at tables or 130 theater style. The room includes a full-wall white board, in-ceiling audio, and a ceiling-mounted projector with two 40-inch side monitors. We also have a beautifully-appointed board room which seats 24 around the table and includes two 70-inch monitors that can hook up to your laptop. Our third space is a small conference room that can accommodate 10-25. For availability and pricing, please contact Director of Programs, Mark Glazer (mglazer@gcaar.com or 301.590.8787).

Q:Why can’t I let my business partner use my SentriLock card? She’s licensed and we share our listings.

A:SentriLock cards are unlike any other card you have in your wallet. Your SentriLock card opens the front door to thousands of homes in the DC metro area. Every listing in the jurisdictions where you are licensed that has a SentriLock lockbox is accessible with this card.

Installing a lockbox on a home is a trust that our clients give to us. In exchange for this trust, we agree to follow all the lockbox rules that are in place to protect them. In the rules, each Sentricard user agrees “Not to lend the SentriCard® or property key to any person, for any purpose whatsoever, or to permit the SentriCard® or property key to be used for any purpose by any other person” (paragraph 5(d)). Every GCAAR REALTOR® can participate in the lockbox system and anyone listing or showing property should have their own card. It’s in the best interest of our clients and our way of doing business to have everyone follow these rules. Violations can result in the revocation of your card, so please make sure that you have read and understand the rules and regulations. They can be found in the “Toolkit” section at gcaar.com.

Bobette BanksManaGinG editOr

Deborah BellassOCiate editOr

Arlene BraithwaiteadVertisinG representatiVe

Lisa Cadigan, Cadigan CreativedesiGn & laYOUt

2 Capital area realtOr® • May/Jun 2014

How long have you been an affiliate with GCaar? Counselors Title has been an Affiliate member of GCAAR since we opened the company in 2007. I began my affiliation with GCAAR shortly after entering the settlement business in 1998. My introduction to GCAAR really began when I joined the Contract & Clause Committee in 2001, upon which I have served since that time.

What are some of the events you support? We are happy to support many of GCAAR’s causes and events. Because my partners and I enjoy teaching continuing edu-cation (CE) classes, a great deal of our involvement revolves around these seminars, including those offered at GCAAR’s annual REALTOR® Fest. In addition, we have supported GCAAR through maintaining the Legal Hotline since 2008. The Hotline enables us to assist the members with questions regarding GCAAR forms, as well as general questions of law.

Why do you continue to support GCaar as an affiliate?Whether it is Contract & Clause, Public Policy, Community Service, or any of the other GCAAR committees, our company has found that being an active Affiliate member not only helps us remain informed about and participate in shaping issues impacting our real estate community, but also allows us the unique opportunity to engage with our peers in a collaborative environment.

What would you say to people who are considering becoming an affiliate?Don’t hesitate. You will certainly get more out of it than you could ever put in.

Why do you think being a member of GCaar is important? GCAAR is unlike any organization in which I have participat-ed. From GCAAR staff, the Board, and throughout all of the committees, there is a unique commitment to inclusion and cooperation that allows all members the opportunity to partic-ipate and become actively involved in our profession. My years of participation as an Affiliate have allowed me to expand my understanding of the real estate community’s importance to our economy, further my profession, actively participate with and learn from the practitioners, and make many friends along the way.

Affiliate Spotlight:Chris Darby Counselors Title

Students illustrate the importance of Fair HousingCongratulations to GCAAR’s Fair Housing Poster Contest winner for Montgomery County, Elizabeth Rockabrand of Gaithersburg Middle School. The Maryland Association of REALTORS® (MAR) and special guest Maryland State Comp-troller, Peter Franchot, announced the winners of the annual Fair Housing Poster Contest during a recognition ceremony on April 22 at the Goldstein Treasury Building in Annapolis. Students representing 13 schools across the state received a certificate and a gift card co-sponsored by BB&T Bank. As part of the contest, students were asked to illustrate the theme: The Key to Fair Housing is Cultural Diversity.

The 13 winning posters will be produced into a colorful 2015 calendar, which MAR will distribute statewide to promote the principles of fair housing. The contest allows school children to express their ideas creatively, while fostering the principles of equal opportunity in housing. Thanks to Gaithersburg Mid-dle School teacher, Christopher Cuff, who accepted Elizabeth’s award on her behalf. Congratulations Elizabeth!

L-R: Hildy Pollard, GCAAR Board Member and GCAAR member of MAR’s Equal Oppor-tunity/Cultural Diversity Committee; Deborah Bell, Manager of Communications and Community Service Committee Staff Liaison; Gwen Henderson, GCAAR Board Member; Christopher Cuff, Gaithersburg Middle School teacher for Elizabeth Rockabrand; Mary-land State Comptroller, Peter Franchot; Bonnie Casper, GCAAR Past President and MAR Secretary; “Q” Armstrong, GCAAR member of MAR’s Equal Opportunity/Cultural Diversity Committee; Mike Moran, GCAAR CEO.

fair housing

Capital area realtOr® • May/Jun 2014 3

is on the move!GCaar CareS

GCaar Cares Walks for the Homeless in Montgomery County, MD

On Sunday, May 4, GCAAR Cares members, family, and friends participated in the Walk ‘n Roll event hosted by the Montgomery County Coali-tion for the Homeless (MCCH) at the Mattie J.T. Stepanek Park in Rockville, MD. The event was well attended by Montgomery County Council members who stressed their commitment to end homelessness in the County. Walkers enjoyed great weather, live music, and face painting for the entire family!

For more information about MCCH, go to mcch.net.

...more GCAAR Cares on page 6

© marleen van den neste

Capital area realtOr® • May/Jun 2014 54 Capital area realtOr® • May/Jun 2014

If you haven’t been

to a Women’s Council of REALTORS® meeting yet, you’re missing out.

The Women’s Council of REALTORS® (WCR) is the twelfth largest U.S. women’s professional organization and has one of the most successful communication networks in the National Association of REALTORS® (NAR) family. There are over 80 local chapters across the country. Chapter membership includes real estate professionals and related industry vendors who support the objectives of WCR and are interested in serving the industry, the community and fellow REALTORS®. Men are welcome!

The Greater Capital Area (GCA) chapter of WCR was chartered in January 1990. The local chapter has members working in the Maryland, District of Columbia, and Virginia markets. The chapter prides itself on bringing members current and relevant information that will be readily incorporated and grow everyday business.

Why become a member?• Local support, national strength

• Networking and referral opportunities at the local and national levels

• Professional and personal development

• Performance Management Network (PMN) designation

• Information and Resources

• eConnect

• WCR.org

In addition, GCA WCR members can attend 2 of 3 Maryland State WCR-sponsored classes at no charge.• August 13: Robert Morris – Military Relocation Specialist

certification at MAR Headquarters

• September 7: Gee Dunsten – PMN class at Maryland Association of REALTORS® Annual Convention

Make plans to attend one of GCA WCR’s meetings before the end of the year, and stay tuned for details about their network-ing social in the fall. Meetings are held every third Wednesday in the month from 9:00 – 11:30 a.m. at GCAAR, 15201 Diamondback Drive, Suite 100, Rockville, MD. 20850.

Valuable resources, Networking, and Much More

Upcoming Meetings July 16: MRIS Products and Services You May Be Overlooking

september 17: REALTOR® Safety Month

October 15: Year-end and 2015 Tax Changes/Chapter Election

Women’s Council of REALTORS®

February WCR featured a breakdown of the association structures.Front Row L-R: Gwen Henderson, 2014 GCA WCR President; Bonnie Roberts-Burke, 2014 DCAR President; Mike Moran, CEO GCAAR; J. Russell Boyce, 2014 President, MAR; Back Row: Ed Krauze, CEO DCAR; Tony Duncanson, DC Real Estate Commission; Greg Ford, 2014 GCAAR President.

4 Capital area realtOr® • May/Jun 2014

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Rebuilding Together® in the communityGCaar CareS

2014 Rebuilding Together® DC took place on Saturday, April

26 with over 50 volunteer participants! GCAAR Cares Committee member and 2013 Rookie of the Year, Michael Fowler, was this year’s Rebuilding Together® House Captain. Michael, along with fellow members, affiliates, family, and friends helped repair a home in Washing-ton, DC through the non-profit organization, Rebuilding Together®. Each year, GCAAR sponsors a home that is in need of critical repairs and renovations for low-income homeowners. Homeowners must apply to be selected for the annual Rebuilding Day project. The volunteers who complete the work consist of both skilled and unskilled laborers. For more than 30 years, Rebuilding Together® has held the philosophy that every person deserves to live in a safe and healthy home. This year’s Rebuilding Together® homeowner was overwhelmed with gratitude, stating “This is the best birthday present, ever.”

Many thanks to our Community Service Chair and Co-Chair Chuck and Adriana Clapper for obtaining our food sponsors, and the entire GCAAR Cares Community Service Commit-tee and Staff who coordinate this project every year, making it a memorable occasion for all involved. But, more importantly, we thank YOU, our volunteers and supporters, for coming out to support GCAAR Cares with 2014 Rebuilding Together® DC!

GCAAR Rebuilds a Home in Washington, DCHouse Captain, Michael Fowler (far right) takes photo with homeowner Valencia Foster-El (center) and her mother.

GCAAR Board Member David Bediz takes selfie with Manager of Communications and GCAAR Cares Staff Liaison Deborah Bell, GCAAR Board Member Gwen Henderson, and fellow volunteer Phillip Ray.

6 Capital area realtOr® • May/Jun 2014

special thanks to our house captains, food sponsors, skilled laborers, and donor!

House Captains:

• 2013 Rookie of the Year, Michael Fowler, Captain• GCAAR Board Member, Gwen Henderson, Co-Captain

skilled laborers:

• Timothy Baker• Aaron Dawkins• Hank May• Dick Stoner

Food sponsors:

donor:

• Patricia Widerman, BB&T Bank

photos, top to bottom: • 2014 Rebuilding Together® DC Volunteers.

• 2014 GCAAR President Greg Ford strategizes with skilled laborers.

• 30 Under 30 Winner CJ Harris and GCAAR Board Member Koki Adasi paint bedroom.

• (l-r) Jess Adasi, GCAAR Board Member Koki Adasi, 2014 GCAAR President-Elect Suzanne Des Marais, GCAAR Board Member David Bediz, Phillip Ray

Breakfast/Snack Sponsor

Lunch Sponsor

8 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 9

director’s reportNar

The National Association of REALTORS® (NAR) Board of Directors met on Saturday, May 17 at the Marriott Ward-man Park Hotel right here in Washington, DC. Your

GCAAR NAR Directors were there, of course, and excited to rep-resent your interests on the national level.

Mandatory Core association StandardsWhile there were many items on the agenda, the most significant was the presentation and approval of Mandatory Core Associa-tion Standards for the thousand-plus local and state associations across the United States.

Those of us in major metropolitan areas have benefited for decades from the resources made available to us from our relatively large local associations. GCAAR is one of the twenty largest locals in the country. The larger associations across the country have offered their members these core services and more for many years. The passage of Mandatory Core Association Standards is NAR’s move to make sure that REALTORS® across the country have the same basic benefits that we do.

Associations will have to meet standards in six areas: 1) Code of Ethics education and enforcement; 2) advocacy; 3) consumer outreach; 4) organizational unification; 5) technology; and 6) financial solvency.The NAR Board approved up to $20 million to help associations across the country to meet their new responsibilities.

leadership election processThe Board approved an overhaul of the process leading to the election of candidates for NAR leadership with the intent of short-ening and increasing the transparency of the process. Candidates will now qualify for election based on objective criteria, including personal bankruptcy and foreclosure history, credit score, and no current delinquent federal, state, and local tax filings or pay-ments. For those cleared to run, the election timeline is shortened to ten months. NAR’s Delegate Body will vote at its meeting in November on the portions of this change requiring constitutional amendment. If they pass, the changes take effect Jan. 1, 2015.

MlS policyWith the increased use of automated valuation methods (AVMs) for valuing property, the Board amended the MLS Policy Statement to clarify that AVMs are to be included among the val-

peg Mancuso2014 GCaar Board Member, Nar Director

uations participants can develop for clients and customers. MLSs must make information available to participants in a manner that makes development of fully-automated AVMs possible.

professional StandardsThe Board made the following changes to the NAR Code of Ethics and Arbitration Manual:

• Clarified that hearing panel chairs may convene pre-meetings to resolve administration questions

• Clarified that “probation” is not a form a discipline, but can be coupled with an authorized form of discipline

• Expanded disciplinary measures to include requiring members to cease conduct found to violate the Code, and/or to take affir-mative steps to ensure compliance with the Code

The California Association of REALTORS® was authorized to run a pilot program publishing names and photographs of Code of Ethics violators on a broader basis than permitted under existing NAR policy.

tax policyThe Board adopted a policy that supports the Foreign Investment in Real Property Tax Act (FIRPTA), but stipulates that Congress should not do away with laws subjecting foreign and U.S. real estate investors to similar tax rules.

issue Mobilization and legal assistanceThe Board approved $1.2 million in issue mobilization funds for three associations in their battles in state tax reform efforts. The Board also provided $435,000 in legal assistance funds for six cas-es affecting associations and MLSs.

KudosA resolution was passed recognizing the 80-year anniversary of the Federal Housing Administration. The Board also congratulat-ed the 2014 Distinguished Service Award (DSA) recipients, Mike Brodie of Plano, TX, and James Helsel, Jr., of Lemoyne, PA., and the first graduating class of 10 students from NAR’s Master of Real Estate program.

Finally, the 2015 Leadership Team was announced, by President Chris Polychron, AR., by electing Tom Salomone, FL., president-elect, and Bill Brown, CA., first vice president. Treasurer Mike McGrew, Kansas, is in his second year of a two-year term. Polychron also introduced the team’s two appointed vice presidents, Charlie Oppler, NJ, and Mike Ford, AR.

technology

Open Lockboxes Via Your Smartphone or Tablet With the New SentriSmart™ AppThe SentriSmart™ mobile application allows you to access a lock-box key compartment with the use of a mobile access code instead of a SentriCard®. Now you can get automatic listing assignments, instant showing notifications, and SentriCard® renewal codes via your smartphone or tablet. This application is free to GCAAR members. Take advantage of this member benefit and get started today! Visit GCAAR.com/Tool Kit/SentriLock to download the user guides for Apple and Android devices.

Here are just a few of the features you can enjoy with SentriSmart™:• Generate one day codes – Allow out of area agents, contrac-

tors, or non-card users property access with secure codes.

• View access log – Know who showed your property and when at the touch of a button.

• assign/remove from property – assign lockboxes to proper-ties allowing for improved inventory and showing notification reporting.

Search for Property Information in a “Snap” with Homesnap ProMRIS and Homesnap are excited to announce the launch of “Homesnap Pro powered by MRIS,” a new robust platform for real estate professionals. MRIS is the first MLS to partner with Homesnap to provide our customers with access to Homesnap Pro. Homesnap Pro provides the “professional-only” information that the consumer can’t see, keeping you as the source for this valuable listing information. Homesnap Pro is now included for FREE in your MRIS subscription.

Here are just a few of the features you can enjoy with Homesnap pro:• Get professional-only information! With your complimentary

Homesnap Pro subscription, you’ll get additional proper-ty details on each listing, including agent remarks, showing instructions, schools, commissions and more.

• search for property information with a single snap! Homesnap Pro gives real estate professionals a home search experience that’s as easy-to-use as it is powerful - right from your smart-phone.

• Connect with your contacts! Invite and connect with clients and prospects through the Homesnap app. Get insight on what they’re looking for while staying in contact with them.

• See why NAR’s REALTOR® Magazine called Homesnap the “Best Mobile Tool.” Activate your FREE Homesnap Pro subscription today! Learn how when you visit MRIS.com/HomesnapPro.

Need help? Contact Sentrilock’s priority Support line

at 1-877-Sentrilock.

Capital area realtOr® • May/Jun 2014 11

Meet Your GCaar Committee: property Management Please note: In the March/April issue we inadvertently listed the Public Policy com-mittee description instead of Property Management. We apologize for any confusion this may have caused.

The Property Management Committee reviews the association’s current property management forms making recommendation on revisions, and also creates new forms as needed (determined by market conditions and changing regulations). 51 percent of the committee members’ real estate work must be in rentals. The committee meets monthly.

2014 roster

Meet Your GCaar Committee: Contracts and ClauseThe Contracts and Clause Committee reviews the association’s current standardized forms, makes recommendations on revisions, and creates new forms as needed (determined by market conditions and changing regulations). The committee meets monthly.

2014 roster

meet your committees

Ellen Katz, Co-Chair, GRIMarie Shannon, Co-Chair, CRBJamie Coley, Vice ChairThomas BrockettJoan Brown, GRI Christopher DarbyAnthony DeVol

Jeffrey Ganz, GRISusann Haskins, ABR, CBR, CRS, GRIVincent Hurteau, CBRColin JohnsonAngela Jones, E-Pro, GRIArthur KonopkaHank May

Jean Poitevien, ChairLewis Laws, Vice ChairHubert Brucker Cynthia Davis Mitchell FarrahSally Hamidi, GRI

L-R: Sandy Hargis and Yvette Robinson, Co-Staff Liaisons; Lewis Laws, Vice Chair. Not pictured, Jean Poitevien, Chair.

Jill Michaels Allan PrigalMarjorie RosnerRandy RothsteinRichard SaundersP. Joy SiegelJosette SkillingKristen Williams, CBR

Harold Huggins, CCIM, CPM, CRB, CRS, GRI Richard HumrichouseTim Knobloch, CRS, GRI Zacchaeus OdeboMatthew Rogers

Charles Sullivan, ABR, CRS, GRIShahnaz TehraniazadGordon Young

Welcome new members!Be on the lookout for an email from GCAAR about your new member packets. You can pick up your packets at our offices between the hours of 9 a.m. - 4 p.m. Mon-day – Friday, and between 11 a.m. – 2 p.m. on Saturdays. We want to make sure you have everything you need to get up and running in your real estate business!

Don’t be caught with dead batteries!If you have not replaced your SentriLock batteries, now’s the time to do so! SentriLock is encouraging any NXT lock-box owners with batteries older than 4.5 years to replace them. Please come to our offices in Rockville or DC to have your batteries changed. You will need two bat-teries per lockbox. Prices are $8.39 for a pack of two or $35 for a 10-pack. If you have already done so, you should update your last battery replacement date on the website under “My Lockboxes.”

10 Capital area realtOr® • May/Jun 2014

membership corner

Capital area realtOr® • May/Jun 2014 13

The air was cool, the wind was brisk, but sunshine and spirits were bright

as GCAAR officially opened the doors at its new Rockville location on April 23. Members, friends, and special guests, including County Executive Isiah “Ike” Leggett, County Councilman George Leventhal, and representatives from the area asso-ciations, came out to help celebrate this milestone in GCAAR’s history. Following the ribbon cutting, attendees were treated to a cocktail reception complete with smooth sounds from the band DMV, tours, and an Affiliate table fair.

Also, as part of the Grand Opening festivities, two $10 classes were held on Monday, April 28, with half of the proceeds from each attendee going to GCAAR’s Community Service committee, GCAAR Cares. Over $450 was raised!

Many thanks again to all who attended the Grand Opening celebration and/or took classes on April 28. We appreciate your support and hope to see you soon at 15201 Diamondback Drive!

Grand Opening Celebration Kicks Off New Chapter in GCAAR’s History

Photo: Crowd gathers for opening remarks.12 Capital area realtOr® • May/Jun 2014

Attendees take building tours

1-2-3 CUT!

Dale Ross, Building Task Force; Peg Mancuso, GCAAR Board member; Harold Huggins, Building Task Force; Jim Kneussl, 2004 President; Dennis Melby, 2008 President; County Executive Ike Leggett; Bonnie Casper, 2012 President, Michael McGreevy, 2013 President; Greg Ford, 2014 President; Suzanne Des Marais, 2014 President-Elect.

Building purchase com-pleted during the tenure of 2013 President Michael McGreevy.

2014 GCAAR President Greg Ford served as Master of Ceremonies.

2012 President, Bonnie Casper, chair of the Building Task Force.

GCAAR happenings

Packed House for Working with the Global ClientOn Thursday, May 1, over 75 members participated in GCAAR’s International event, Working with the Global Client. Events Committee Chair, Bill Rozek, led a panel of attorneys, lenders, and accountants discussing the nuances of international real estate transactions. International buyers make up 20% of the DC Metro area market. REALTORS® who are not ready to handle the international transaction are missing out on 20% of their possible business! A robust Q&A session followed the presentation ensur-ing that everyone walked away having learned something new. Thank you to our sponsor, HSBC.

L-R: Richard Chisholm, Ward Chisholm, P.C.; Michael Schimmel, HSBC Mid Atlantic Mortgage Manager; Bill Rozek, Events Committee Chair; Robert Bender, Partner, Aronson LLC; Alison Dougherty, Associate, Aronson LLC.

YPN Happy Hour Benefits Local Nonprofit DC’s Toro Toro Bar was the setting the for Your Profes-sional Network’s (YPN) second happy hour of the year on Wednesday, May 21. Attendees “networked with a purpose” donating proceeds from the event to The Arc in Montgomery County. The Arc is one of the largest and oldest nonprofit organizations in Maryland and serves individuals, families, and employers affected by intellectu-al and developmental disabilities. Thanks to our sponsors, First Home Mortgage, Paragon Title & Escrow, Sandy Spring Bank, and Village Settlements.

YPN Chair Thomas Castagnola with Vice Chair, Jessica Evans.

Attendees network at the event.Please note: In the March/April issue, GCAAR staff members Katie Maclure and Charnita Gorman were listed as Senior Accounting Manager and Accounting Coordinator. Their correct titles are Senior Accountant and Junior Accountant respectively.

14 Capital area realtOr® • May/Jun 2014

resources

“GCAAR on the Go” is an opportunity for our members, whether they are a broker-age or company or a group of independent agents, to offer an approved continuing education (CE) class to their agents at their office without the expense of sending them to another location to take the class.

How “GCaar on the Go” works: You (brokerage/agents) set up a discussion with the Education Department about what class(es) you might like to offer and when you are thinking of offering them (dates, times, etc.), and then the fun begins! GCAAR will do all of the legwork – booking an instructor, producing the handouts, having the certificates and reporting sheets available, reporting attendance to the different real estate commissions, and staffing the class (handling registra-tion and sign-in, opening announcements, and stamp out at the end of class).

You identify a space to have the class and provide GCAAR with the address of the location, secure the necessary AV equipment (screen, projector, flipchart – if you do not have a projector GCAAR may be able to supply one), provide any refreshments, and give GCAAR a list of all of the registered agents, no later than 48 hours before the start of the class. That’s it.

Currently, the cost per class is $750, regardless of the number of registrants for the class.Please note: The class must be open to outside agents and GCAAR will publicize the class to the general membership.

For more information, contact Mark Glazer at 301-590-8787 or mglazer@gcaar.com.

GCAAR in the news

real estate radio NetworkWRC 1260 The Todd LaBorwit Show May 24, 2014Greg Ford, 2014 GCAAR President featured

GCAAR happeningsGCAAR Hosts Montgomery County Executive Democratic ForumOn April 24, GCAAR hosted a Montgomery County Executive Democratic Forum to prepare REALTORS® for the County’s June 24 Democratic Primary elections. Focused exclusively on issues affecting real estate, the forum featured County Executive Isiah “Ike” Leggett, Councilmember Phil Andrews, Former County Executive Doug Duncan, and Bethesda Magazine’s Lou Peck as moderator.

Candidates agreed on the importance of affordable housing options for new and existing residents. Expanding the County’s workforce in key sectors, such as health and technology, addition-al incentives for businesses, and lower taxes were viewed as viable economic development improvements. Other issues included the County’s changing demographics, Maryland’s Maintenance of Effort law and the role it plays in Montgomery County schools, and proposals to adjust energy taxes.

The Forum was held at GCAAR’s new Rockville headquarters and co-hosted by the Apartment and Office Building Association (AOBA) and the Maryland-National Capitol Building Industry Association (MNCBIA).

L-R: Phil Andrews, Ike Leggett, Shawn Pharr, AOBA; Lou Peck, Doug Duncan, Bob Kaufman, MNCBIA; Ed Krauze, VP Public Policy, GCAAR.

GCAAR RPAC Chair and 2012 President Bonnie Casper with Phil, Ike, Lou, and Doug.

Capital area realtOr® • May/Jun 2014 15

GCaar On the Go Brings Knowledge to YouBonnie Casper Speaks at the Montgomery County Affordable Housing ConferenceGCAAR’s 2012 President Bonnie Casper participated in a panel discussion entitled, “Has Our Housing Kept Up with Demographic Changes?” at the 2014 Montgomery County Affordable Housing Conference Summit at the Bethesda North Marriott Conference Center on Friday, May 2, 2014.

Montgomery County and the Washington, DC region are expe-riencing a dramatic shift in the age, ethnicity, and income levels of people moving into the area. Bonnie said that the most diffi-cult obstacle to making Montgomery County a viable choice for younger people and retirees is the price of housing. The emphasis has to be on reducing the cost of building new housing – and on expanding the range of places where multi-family housing can be built. Bonnie was a part of a panel that included Massoud Ahma-di, Department of Housing and Community Development; Rose Krasnow, Montgomery County Planning Department; and Lisa Sturtevant of the National Housing Conference.

16 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 17

Montgomery County Sales Market For the month of April, the combined – single-family and con-do/coop -- sales market had a pretty lackluster performance. The total unit sales volume came in at 871 properties, but that dropped almost 12% from a year before. The monthly sold dollar volume totaled $449,812,720, and was down over 7% from a year before. The average sold price came in at $516,433 – edging up 4.75%; but, the median price of $400,000 edged down just under 1% from a year ago.

Properties sold in April turned over faster than a year ago. Average days on the market totaled 44 – 6 fewer days than in the previous April. But, it was a bit less of a seller’s market this April -- the ratio of average sales price to average original listing price was 97%, down less than 1% from last year. Nevertheless, the inventory was in much better shape. April active listings totaled 2,414 prop-erties, and this level was over 23% above that of April 2013. The high appreciation rates of last year and higher inventory levels are putting pressure on sellers and prices.

april Single-Family HomesFor the first four months of 2014, year-to-date settlements and contracts were down significantly from a year ago. The 2,029 April year-to-date single-family settlements were more than 8% under the same period in 2013; and, year-to-date contracts (2,912) dropped almost 8% from a year before. The direction of the results was similar for the April monthly figures. Indeed, April settlements (648) were almost 15% below a year before, and new contracts for the month (1,059) slipped over 2%.

However, the general trend of inventory has been upward. At the end of 2013, total single-family active listings came in at 1,330 homes. By April, there were 2,127 total actives and these were

26% above the level of a year before. Moreover, the 1,476 proper-ty listings for April were 4% above those of April 2013. But even with this growth in listings, at the April contracts pace, there was only about a 2-month supply of properties.

So far, 2014 continues with price performance off a bit from last year. The 2013 year-end average sales price was $573,281, and the median was $460,000. Through April, the average and median prices were $566,402 and $441,185. These are down 1.2% and 4.1%, respectively, from the 2013 prices. And, a continuing solid growth of inventory will continue to make appreciation difficult.

april Condominiums and CooperativesFortunately, the month of April was only a little bit cruel for Mont-gomery County condominium and cooperative sales. Through April, there were 733 condo/coop settled sales – down 4% from a year ago. And, for the month, settlements declined almost 2% to 223 units. April contracts also showed declines. Year-to-date contracts (960) dropped 7% from last April; and, the 303 new monthly contracts slipped a bit over 1%.

Moreover, April inventory substantially exceeded the levels of the first third of 2013. April condo/coop active listings (534) came in 25% above the level of a year before. However, monthly new listings (363) slipped almost 5% below the April 2013 figure. Still, the monthly contract pace was less than a 2-month supply of properties. Supply is likely to rise as prices have shown positive appreciation.

Contrary to the single-family market, the 2014 condo/coop mar-ket is showing positive price appreciation. For 2013, the average price of $269,950 was up almost 7.7% from 2012; and, the median price of $220,000 was 5.6% higher. Furthermore, through April, the average price of $276,509 rose 2.4%; and, the median of $223,000 edged up 1.4% from the 2013 figures. Still, these figures look pretty good when compared to a national economy that is growing at about 2% with 1% inflation.

Washington, DC Sales MarketThis April, the District of Columbia combined unit sales pace was just a bit down compared to a year before. It totaled 635 proper-ties, declining about 2% from a year ago. However, the sold dollar volume of $391,997,645 jumped 10% from the previous April. The average sold price came in at $617,319, bouncing over 12%; and the median sold price was $499,900 rising over 6%.

Sellers still seem to be in the driver’s seat in this market. The average days on the market figure came in at 33, and that was down from 42 in April 2013. Furthermore, the average sales price to average original listing price ratio came in at 98.7%, up just a bit from a year before. Accordingly, inventory was up a bit. April inventory totaled 1,106 actives and that figure was up 2% from a year ago. Below, we provide data for single-family and condo/coops for April and year-to-date April.

april Single-Family HomesThe Washington, DC single-family sales market has been a bit soft so far in 2014. April year-to-date settlements (1,127) edged down by almost 1%, and April new settlements (322) slipped by the same percentage from 2013. The recent performance of contracts improved, but up until spring it has been weak, as well. Monthly single-family contracts (462) rose 2% from a year before; howev-er, April year-to-date contracts (1,404) declined almost 2%.

The District’s April single-family inventory was significantly below the levels of a year ago. April total active listings totaled 579 properties—down almost 6% from a year ago. But, new single-family listings for the month (558) rose over 2% from a year before. Accordingly, at the April sales rate, there was only a 1.25-month supply of homes.

housing statisticsMONtGOMerY COUNtY & DC

by Fred Flick, PhD, Consultant/Housing Economist

... continued, page 18

18 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 19

Price performance has been soft as well. Home prices through April are down slightly from the end of last year. In 2013, the average DC single-family home cost $711,905 with the median price at $599,900. This resulted in appreciation rates of 8.6% and 13.2%, respectively, over 2012. However, so far through April, the average price of $711, 031 was down slightly; and, the median of $573,000 has dropped by 4.5%. This is still the beginning of the spring buying season, but there may be a bit of a price correction from last year’s highs going on.

april Condominiums and CooperativesThe good news is that the DC condominium and cooperative market is doing better than the single-family market. Year-to-date April settlements (1,070) were up almost 1% and contracts (1,344) rose almost 2% from a year ago. Moreover, monthly con-tracts (438) edged up about 1% over last April. However, April settlements (309) fell almost 5% from a year before.

On the supply side, listings are up strongly from a year ago. This February was the low point at just over 520 properties. But, by the end of April, listings totaled 636 units and were up 13.6% over April 2013. Similarly, the 537 April new listings were almost 4% higher than a year before. Nevertheless, at the April contracts pace, there was only a 1.5-month supply of properties.

With tight supply, condos and coops experienced very good appreciation rates in 2013. Annual average and median prices were up 5.9% and 7.5% from their respective 2012 figures. How-ever, through April, prices are showing some softness. While the April average of $461,977 was up 1.6%, the $399,900 median slipped 2.1% from the 2013 figures. This is still early in the game, but there seems to be some slowing and correcting here, as well.

National resale MarketNationwide, total existing home resales in March (most recent) totaled 4.59 million units at a seasonally adjusted and annualized rate (saar). The monthly figure slipped 0.2% below February and was 7.5% below the rate for March 2013. However, the March median price of $198,500 jumped almost 8% from a year before with the $246,800 average rising almost 6%. At the end of March, there was about a 2-million unit inventory (saar), which repre-sented just over a 5-month supply of homes. That inventory was up 4% from February, and over 3% above the March 2013 stock.

For the single-family resales market, March sales (4.04 million, saar) equaled the level of February, but were 7.3% below the pace of March 2013. However, the single-family median price ($198,200) rose about 7.4% and the average ($246,200) moved up 5.6% from a year ago. In the existing condo/coop market, sales units (550,000 saar) were 1.8% below February, and over 8% below March 2013. Nevertheless, the national condo/coop medi-an price came in at $200,800 – bouncing up almost 12% from a year before. The average price ($251,300) jumped 8%.

economic Growth and JobsThe April 30 Bureau of Economic Analysis’ advance estimate of first quarter 2014 real GDP growth (the economic growth rate less the inflation rate) came in at a weak 0.1%. Many forecasters had estimated that the fourth quarter rate would be small and some are now expecting the revised figure (at end of May) will put us at negative real growth for the first quarter. It was expect-ed to be low because of the bad weather throughout the country. Nevertheless, many forecasters expect the second quarter to show a substantial rebound. In the fourth quarter of 2013, real GDP increased about 2.6% -- a pretty healthy rate given the history of the financial recession. Overall, 2013 achieved a real growth rate of only 1.9%. However, most economists still are bullish on U.S. growth, business profits, and the economy for 2014.

The best news this spring was the most recent jobs report. Non-farm payroll employment increased by 288,000 jobs in April. In fact, total payroll expenses rose and almost hit the peak just before the 2008-2009 recession. Also, the household survey for the unemployment rate came in with a ‘low’ 6.3% rate. However, this lowered unemployment rate was due to more potential work-ers dropping out of the labor force. While these numbers look pretty good, we are still a long way from a full-employment and high-growth economy. But, we are getting closer and, so far, at the cost of only about 1% inflation.

Monetary policy, interest rates, and inflationThe Fed continued to cut monthly purchases of U.S. Treasury securities and mortgage bonds in April. At this point, it appears they will stick with this strategy throughout the year, unless there is a strong reversal of the growth and employment trend. They also are continuing to say they will put pressure on short-term interest rates into 2015. Recently, bond markets have rebounded and are continuing to keep long-term interest rates relatively low.

The stock market is still holding firm, setting new closing records, although there is considerable volatility in these indexes, espe-cially for tech firms. Although mortgage rates are up about a percentage point from a year ago, there are not likely to be large spikes in rates. The stock market seems to be waiting for a signif-icant correction, but there are not many safe places to put one’s money. Similarly, bond rates seem to be stuck in a range as well. The Fed continues to promise to keep short-term rates low into 2015. Nevertheless, some analysts feel that consumer prices will start rising soon, although at slow rates. This should not be a problem in the short-term, but in a year we could see some sub-stantial increases, and the Fed would have to reconsider some of its policy approaches.

the Bottom lineThe 2014 real estate markets have started out and continue to be a bit weaker than they were in 2013. Some of this may be due to the late winter weather, but also to the fact that 2013 was a very good year. Some sales and price corrections can be expected. This is true for stock markets as well. Nevertheless, the combined April performance was reasonable. Given some of the uncertainties in the economy, we should moderate our expectations for sales vol-umes and price appreciation.

housing statistics

20 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 21

GCAAR members Jan Brito, Jo-Ann Henry, and Moquit Malik recently completed the Maryland Association of REALTORS® (MAR) Leadership Academy and were among the 20 honored graduates in

ceremonies held in Annapolis.

The MAR Leadership Academy was formed by REALTORS® who understand the important role they play in their community. Enhancing their leadership skills, knowledge, and competencies helps REALTORS® make a difference in their personal lives and in their communities. The Academy offers an intensive curriculum designed around developing skills in leadership, communications, strategic planning, legislative, and government affairs and community involvement. Classes are conducted over seven months and stress the value of professional and personal commitment to business, charitable, and civic endeavors. GCAAR, one of 16 local REALTOR® Associations in Maryland, is a strong advocate that recognizes the important of the program to the Association’s future.

2009 NAR President Charles McMillan addressed the graduates in his “Leadership from the Heart” presentation, saying that “service to others was the noblest attribute a great leader could possess.”

L-R, 2014 MAR President J. Russell Boyce, Jan Brito, 2009 NAR President Charles McMillan.

L-R, 2014 MAR President J. Russell Boyce, Jo-Ann Henry, 2009 NAR President Charles McMillan.

L-R, 2014 MAR President J. Russell Boyce, Moquit Malik, 2009 NAR President Charles McMillan.

Capital area realtOr® • May/Jun 2014 21

GCAAR Members Complete

2014 MAR Leadership Academy

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22 Capital area realtOr® • May/Jun 2014

GCAAR Welcomes New Emeritus Members!

The National Association of REALTORS® Emeritus status is given to those REALTORS® who have 40 years of membership in the national organization. GCAAR is proud to congratulate the following members who have reached Emeritus status:

Sylvia Bergstrom

Francesca Dahlgren

Cynthia Davis

Judith DiFilippo

Alice Fernandes

Amy Fisher

Diann Gottron

Andrew Greenspan

Linda Hughes

Louise Lewis

Charlotte Pascoe

Frances Silk

James Thomas

Jean Wright

Capital area realtOr® • May/Jun 2014 2524 Capital area realtOr® • May/Jun 2014

RPAC

platinum “r” ( $10,000)GCAAR

Dale Ross

Golden “r” ($5,000)Bonnie Casper

Carole Maclure

Crystal “r” ($2500)Jamie Coley

Fred Kendrick

Jill Pogach Michaels

Michael Moran

Randy Rothstein

Christopher Suranna

Holly Worthington

Sterling “r” ($1,000)Koki Adasi

Charles Burger

Thomas Daley

Suzanne Des Marais

James Downing

Jessica Evans

Greg Ford

Harold Huggins

Adrian Hunnings

Angela Jones

James Kaull

Tim Knobloch

Ed Krauze

Dana Landry

Elizabeth Lavette

Justin Levitch

Peg Mancuso

Matthew McCormick

Ellen Morrell

Shelly Murray

Frank Pietranton, Jr.

Leigh Reed

Frederick Roth

Jason Sherman

Jennifer Smira

Frank Snodgrass

James Thomley

Patrick Weed

Margot Wilson

Edward Wood

Capital Club ($250-$999)Briana Ayala

Wendy Banner

Frederic Bates

David Bediz

Elizabeth Blakeslee

Kevin Breckenridge

Jan Brito

Thomas Brockett

Nathan Carnes

Thomas Castagnola

Marilyn Charity

thank You rpaC investors

(as of June 10, 2014)

RealtorParty

®

Get Seven Hours of Virginia Required CE at This Year’s

REALTOR® Fest July 22!Join us for a day of education and net-working on July 22 at the Bethesda North Marriott with dynamic instruc-tors, exhibitors, and relevant courses designed to take your real estate career to the next level!

new this year: 7 hours of Virginia Required CE Credits! You can also get 7.5 hours of Maryland Required and 9 hours of DC Required! In addition, GCAAR members will pay only $20 for non-CE classes!

Tuesday, July 228:00 a.m. – 8:15 p.m.Bethesda North Marriott5701 Marinelli RoadNorth Bethesda, MD

Register at realtorfest.com

Gregory Coggins

Lori Connor

Christopher Darby

Anthony DeVol

Samuel Dweck

Jeffrey Ganz

Andrea Gaus

Dorie Glass

Scott Goldberg

Jacqueline Grenning

Sally Hamidi

Gwen Henderson

Colin Johnson

Ellen Katz

Anthony Mancuso

Kevin McDuffie

Dennis Melby

Thomas Muldoon

Vittorio Muzzatti

Allan Prigal

Bonnie Roberts-Burke

R. Bradley Runyan

Susan Sanford

Marie Shannon

P. Joy Siegel

Marty Stanton

How much do you know about the generational differences among today’s home sellers? take this quiz, based on the findings of the 2014 Home Buyer and Seller Generational trends survey, to find out.

??? quizWhat Do You Know about Home Seller Generational trends?

Q.1 Which generation comprises the largest group of home sellers?Gen Y (ages 33 and younger)Gen X (ages 34 - 48)Younger Boomers (ages 49 - 58)Older Boomers (ages 59 - 67)Silent Generation (ages 68 - 88)

Q.2 When selling a home to move to a new home, the trend for Older Boomers (ages 59 - 67) is to move to a:a larger, higher-priced homea similar homea smaller, lower-priced home

Q.3 Which is the most frequently-cited reason given by Younger Boomers (ages 49 - 58) for selling a home?Home is too smallJob relocationWant to move closer to friends and familyWant to move closer to current job

Q.4 Which generation of home sellers is most likely to sell a home after having lived in it for 8-10 years?Gen Y (ages 33 and younger)Gen X (ages 34 - 48)Younger Boomers (ages 49 - 58)Older Boomers (ages 59 - 67)Silent Generation (ages 68 - 88)

Q.5 Which generation of home sellers is most likely to offer incentives to attract buyers?Gen Y (ages 33 and younger)Gen X (ages 34 - 48)Younger Boomers (ages 49 - 58)Older Boomers (ages 59 - 67)Silent Generation (ages 68 - 88)

answers: 1. Gen X (ages 34 - 48), 2. a similar home, 3. Job relocation, 4. Gen X (ages 34 - 48), 5. Gen Y (ages 33 and younger)

The questions and answers in this quiz were taken from the 2014 Home Buyer and Seller Generational Trends survey. This annual survey conducted by the National Association of REALTORS® provides insight into, and detailed information about, generational trends of home buyers and sellers. For more information, visit realtor.org or scan the QR code to get the full report.

public policy

Montgomery CountyGCaar Supports increased property tax Credits for limited income Seniors In April, GCAAR President Greg Ford testified in support of a new bill which would raise the County’s Senior Citizens of Limited Income Property Tax Credit. As housing prices rise, so do property taxes – a growing burden for homeowners with modest and fixed incomes. Property tax credits help ease these mounting costs, giving more residents the ability stay in their homes. GCAAR urged the Council to increase income eligibility limits and consider offering similar ben-efits to disabled residents of limited means and veterans’ widows.

GCaar Members appointed to Housing Opportunities CommissionGCAAR members Jackie Simon and Mynor Herrera were recently selected to serve on the Montgomery County Hous-ing Opportunities Commission (HOC). HOC operates as a public housing agency, a housing finance agency, and a hous-ing developer. It provides affordable housing and supportive services to enhance the lives of low and moderate-income families.

Jackie is currently a member of GCAAR’s Public Policy Com-mittee, and Mynor is a former member of GCAAR’s Board of Directors. Congratulations Jackie and Mynor!

26 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 27

District of Columbialegislative Success: No New radon Disclosures In a major legislative victory, the DC Association of REALTORS® (DCAR) worked to stop a bill that could have severely impacted real estate transactions for thousands of DC homebuyers. Thanks to the efforts of your DC State-level Association and its dedicated membership, REALTORS® will not need to worry about new radon disclosures at the closing table.

DCar realtOr®-endorsed Candidates Sweep electionsDCAR celebrated a huge victory in the April 1 Democratic Primary elections with 100% of our endorsed candidates winning their races! Calls for Action, mailings, phone calls, RPAC donations, and vol-unteer hours were just a few of the ways DCAR got involved in the April primaries.

The fights are not over - DC’s General Election is scheduled for November 4, 2014. Watch for increased support efforts by DCAR for our candidates in the coming months!

DCar april Speaker Series Hosts tony Williams DC’s former Mayor Anthony Williams was met with a warm reception by DCAR members at the Speaker Series event on April 10. Williams shared his insight as Chairman of the Tax Revision Commission and how his administration started the revitalization of the District that has continued over the years. Attendees asked tons of questions about the tax revision recommendations which

on the Hill

Maryland General AssemblyMaryland: 2014 General assembly Session achievementsThe Maryland General Assembly adjourned April 8, 2014 with some great victories for Maryland REALTORS®.

•Eminent Domain and Mortgages - Passed Maryland became the first state to pass a prohibition on seiz-ing mortgages or deeds of trust through eminent domain.

• Pit Bull Legislation - Passed Bill eliminates strict liability for landlords in cases involving pit bulls owned by tenants. Landlord liability will revert back to negligence standards.

• Interest on Security Deposits - Passed Lowers the mandated interested rate on rental security depos-its from 3% to a floating rate measured by the U.S. Treasury Department or 1.5%, whichever is higher.

• Mortgage Forgiveness Debt Relief - Passed Extends state tax relief for mortgage debt forgiveness for two years. The amount of debt that remains tax free was lowered from $1M to $100,000 for individuals and from $2M to $200,000 for married couples.

• Maryland Estate Tax - Passed Unifies state estate tax credit with the federal estate tax credit by January 1, 2019.

• Condo/HOAs – Not Passed Despite major advocacy efforts by MAR and GCAAR, legisla-tion to limit Condo/HOA fees and streamline disclosure rules did not pass. The significant strides made by REALTORS® are not lost. We expect to continue seeing these issues on top of our agenda.

advocacy takes Center Stage at Nar’s realtOr® party Convention

The REALTOR® Party Convention & Trade Expo is where the National Association of REALTORS®’ members take an active role in advancing critical public policy and legislative issues facing the real estate industry. GCAAR members joined the Maryland Associ-ation of REALTORS® to visit the offices of Senators Barbara Mikulski (D-MD) and Ben Cardin (D-MD) during this year’s conference May 12 - 18 in Washington, DC. Here’s what we want lawmakers to know:

Secondary Mortgage Market reform REALTORS® support restructuring Fannie Mae and Freddie Mac to ensure affordable mortgages are available. Without government involvement the housing finance sector will collapse, resulting in a major disruption to the nation’s economy.

preserve FHaEnsure that the Federal Housing Administration (FHA) single-fam-ily program has the tools and policies to provide access to safe, affordable mortgage financing for qualified borrowers nationwide, without burdensome limitations.

protect real estate related tax policiesRemember the vital role that real estate tax provisions play in the nation’s housing markets and economy. Tax reform is important but changes should do no harm. Several tax provisions vital to distressed homeowners have expired and need to be extended.

Visit realtoractioncenter.org for details on these and other federal issues affecting real estate.

are now in the hands of the DC Council. It was clear that REALTORS® missed Mayor Williams’ more frequent pres-ence in the halls of DC government, but his influence remains strong as CEO of the Federal City Council.

DC advisor for education Briefs realtOrS® at May Speaker SeriesDCAR’s May Speaker Series featured Senior Policy Advis-er Claudia Lujan from the Deputy Mayor for Education’s office. DC is currently revising Public School boundaries after nearly 40 years of the status quo. Ms. Lujan set the record straight on the proposals. Here’s what you should know: • The committee overseeing the revision includes 23 com-

munity members, District agency representatives, and former educators.

• Population and demographic shifts over the last 40 years have affected school supply and demand.

• Any boundary changes made by the commission will take effect in the 2015-16 school year.

• Keep an eye out in DCAR & GCAAR’s e-newsletters on this key issue!

DCAR’s Speaker Series aims to bring together REAL-TORS® and government officials who directly affect the real estate business. All upcoming DCAR Speaker Series can be found at dcrealtors.org.

2014 DCAR President Bonnie Roberts-Burke with Tony Williams.

DCAR Board member Ed Wood with Claudia Lujan.For details on all the bills reviewed by MAR & GCAAR this session, visit mdrealtor.org.

GCAAR members visit Sen. Ben Cardin.

Capital area realtOr® • May/Jun 2014 2928 Capital area realtOr® • May/Jun 2014

Q

legal hotline

AQuestion: Who may hold a rental Security Deposit in Mary-land and what are the requirements for landlords?

answer: The security deposit in Maryland is typically held by the landlord, but can be held by an escrow agent, if provided for in the contract. If $50 or more, the deposit must bear sim-ple interest of 3% per year*, accrued at 6-month intervals from the date the security deposit was paid. Below is some general information:• A security deposit is any money paid by a tenant to a land-

lord that protects the landlord against damage to the rented property, failure to pay rent, or expenses incurred due to a breach of the lease.

• The security deposit may not be more than two months’ rent. If tenant is overcharged, they have the right to recover up to three times the extra amount charged, plus reasonable attorney’s fees.

AQ

Q• Tenant must receive a receipt for the security deposit. The receipt can be included in the written lease. There is a $25 pen-alty, if the landlord fails to give you a receipt.

• The receipt or lease should tell tenant of their right to receive from the landlord a written list of all existing damages in the rental property, if tenant makes a written request for it within 15 days of taking occupancy. If a list of the existing damages is not provided, the landlord may be liable for three times the security deposit, less any damages or unpaid rent.

• The landlord must return a tenant’s security deposit plus inter-est, less any damages rightfully withheld, within 45 days after the tenancy ends. If the landlord fails to do this without a good reason, tenant may sue for up to three times the withheld amount, plus reasonable attorney’s fees.

*3% interest is changing in 2015. See page 26 for details.

Disclaimer: The answers provided here are the opinion of the authors, are informational purposes, and are only for GCAAR members. Counselors Title, LLC, nor Pardo & Drazin, LLC is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is - or will be - established as a result of the material which follows. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.

By Chris Darby, tom Muldoon, and John Nalls of Counselors title, llC, and pardo & Drazin, llC, General Counsel

QA

Question: I am Broker in Washington, DC and I have a question on disclosure and disclaimer. The seller lives in North Carolina and has not lived in the house for over 20 years. The seller wants to sell the house “as is” with no warranties expressed or implied. Is the seller still required to complete the disclosure form for either an owner/occupant and/or investor buyer? Do we have a disclaimer form in DC?

answer: A Disclosure is required for all owner occupant buyers. Unlike in Maryland and Virginia, there is no disclaimer option in the District. Therefore, unless exempt under the DC Residential Real Property Seller Disclosure Act, all sellers of DC property consisting of 1 to 4 residential dwelling units wherein the pur-chaser expresses, in writing, an interest to reside the property, are required to provide a Seller’s Disclosure Statement (GCAAR Form 919) and provide information based upon his or her actual knowledge. Since it is difficult to know at the time of completing the Disclosure whether the potential buyer intends to reside in the property, the best practice is to provide the Disclosure to all potential buyers. This could be that rare situation where most of the seller’s answers to the questions asked on the form would be “unknown.”

Question: My client is “renting back” their home for 24 days post settlement. Is there a standard practice for a security deposit in a post settlement occupancy situation, such as a percentage of the sales price?

answer: No, there is no “standard” answer to this question, nor is there any legal requirement for a security deposit or the amount thereof. To determine whether to request a security deposit and the amount is a function of negotiation between the parties. The purpose of the deposit is to ensure that, upon the expiration of the

A

post settlement occupancy, the property is in the same condition that the parties agreed upon had it been vacated at the time of settlement. I would suggest that the parties use the GCAAR “Post Settlement Occupancy Agreement” (Form 1309) for this purpose.

Question: If a buyer’s agent sends a conditional loan commitment letter to the seller’s agent, does that remove the financing contin-gency? If so, and if those conditions are not met, would the buyer be in default if the deal did not go through? For example, one of the conditions is verification of employment within 5 days of closing. If the buyer were to be fired from his/her job, the lender would not be able to fund the loan. Since that was a condition of the loan approval, would the buyer be in default or still protected?

answer: Under the GCAAR Conventional Financing Contin-gency (GCAAR Form #1352) (the “Contingency”) there are two ways to remove the Contingency: (a) deliver to Seller a firm written commitment(s) for financing from Lender; or (b) deliver evidence to Seller that Buyer has sufficient funds available to com-plete settlement without obtaining financing.

Under this language, a conditional written commitment would not satisfy the obligations of the contract. However, since there is no definition of a “firm written commitment,” and if the seller is willing to accept the conditional written commitment as sat-isfaction of the contingency, the financing contingency could be removed with a conditional loan commitment. So, in your case, if the seller accepted the conditional loan commitment as satisfaction of the contingency, and the buyer lost her job, the buyer would no longer have the protection of the contingency. The fact that the commitment stated verification of employment was a condition of the loan approval does not alter the agreement between the parties that the conditional loan commitment satis-fied the contingency.

30 Capital area realtOr® • May/Jun 2014 Capital area realtOr® • May/Jun 2014 31

education schedule

continued, page 32

July 22, 2014REALTOR® FestCEU: up to 7 hours VA (Required); 7.5 hours MD (Required); 9 hours DC (Required)Time: 8:00 a.m. – 8:30 p.m.* Bethesda North Marriott Hotel & Conference Center

July 23, 2014Lunch & Learn Contracts ClassCEU: No CETime: 1:00 – 2:00 p.m.

July 24, 2014Maryland Code of Ethics & Predatory LendingCEU: 3 hours MD (Required) & DC (Elective) Instructor: Jill MichaelsTime: 9:30 a.m. – 12:30 p.m.

July 24, 2014New Member OrientationCEU: No CE Instructor: Prabhjit SinghTime: 1:30 – 3:00 p.m.

July 28, 2014Maryland Property Conditions DisclosureCEU: 3 hours MD & DC (Elective)Instructor: Thom BrockettTime: 9:30 a.m. – 12:30 p.m.

July 28, 2014Serving the First Time HomebuyerCEU: 3 hours MD, DC & VA (Elective)Instructor: Thom BrockettTime: 1:30 – 4:30 p.m.

July 30, 2014MREC Agency - ResidentialCEU: 3 hours MD (Required) & DC (Elective)Instructor: Jacqueline TalpaTime: 9:30 a.m. – 12:30 p.m.

July 30, 2014Financing Issues/UpdateCEU: 3 hours DC (Required) & MD & VA (Elective)

Instructor: Jim SemeynTime: 10:00 a.m. – 1:00 p.m.* NAR Building/3rd Floor

July 9, 20142011-2013 Maryland Legislative UpdateCEU: 3 hours MD (Required), DC (Elective)Instructor: Counselors TitleTime: 10:00 a.m. – 1:00 p.m.* NAR Building/3rd Floor

July 9, 2014Rental Property ManagementCEU: 3 hours MD & DC (Elective)Instructor: Jean PoitevienTime: 1:00 – 4:00 p.m.

July 9, 2014Maryland Code of Ethics & Predatory LendingCEU: 3 hours MD (Required) & DC (Elective)Instructor: Counselors TitleTime: 2:00 – 5:00 p.m.* NAR Building/3rd Floor

July 10, 2014Financing Issues/UpdateCEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Jim SemeynTime: 9:30 a.m. – 12:30 p.m.

July 10, 2014Understanding Credit Reports, Scoring Models and How to Improve Your CreditCEU: 3 hours MD, DC & VA (Elective) Instructor: Jim SemeynTime: 1:30 – 4:30 p.m.

July 11, 2014Maryland Legal & Legislative UpdateCEU: 3 hours MD (Required) & DC (Elective)Instructor: Al MonshowerTime: 9:30 a.m. – 12:30 p.m.

July 11, 2014Maryland Fair HousingCEU: 1.5 hours MD (Required); DC (Elective)Instructor: Al MonshowerTime: 1:30 – 3:00 p.m.

July 16, 2014Lunch & Learn Contracts ClassCEU: No CEInstructor: Jill MichaelsTime: 1:00 – 2:00 p.m.

July 17, 2014Contract BasicsCEU: 3 hours MD, DC & VA (Elective)Instructor: Greg FlynnTime: 9:30 a.m. – 12:30 p.m.

July 17, 2014Mortgage Basics: Picking Lenders and Getting ApprovedCEU: 3 hours MD, DC & VA (Elective)Instructor: Chanin WislerTime: 10:00 a.m. – 1:00 p.m.* NAR Building/3rd Floor

July 17, 2014Reverse MortgagesCEU: 1.5 hours MD & DC (Elective) & 1 hour VA (Elective)Instructor: Eric RittmeyerTime: 1:30 – 3:00 p.m.

July 17, 2014Understanding Credit Reports, Scoring Models and How to Improve Your CreditCEU: 3 hours MD, DC & VA (Elective)Instructor: Chanin WislerTime: 1:30 – 3:00 p.m.* NAR Building/3rd Floor

July 18, 2014RPR BasicsCEU: No CEInstructor: Barbara MaloneyTime: 10:30 a.m. – 12:00 p.m.

July 18, 2014RPR Advanced: 10 Ways to Use RPR in Your BusinessCEU: No CEInstructor: Win SingletonTime: 1:30 – 3:00 p.m.

MRIS is committed to maintaining the best, most accurate listing information available in the

MLS system. To ensure that data entered into MRIS is accurate, notifications are sent to listing agents if data corrections are need-ed. Don’t wait until you receive a warning to learn how you can prevent future notifications. Paying attention to these Compliance reminders when entering a listing can help you sell your property faster and avoid unnecessary fines!

Non-MlS listings:Get those listings in! All listings must be entered into MRIS unless the seller has requested in writing that the seller does not want to market their property through the MLS. It is recommended that the listing agent review the advantages of having their property in the MLS in their discussions with the sellers about the marketing of the property.

electronic Distribution of listings:Do you know where your listings are? The Broker of Record determines where their listings are syndicated (distributed to public websites). ListHub is the tool that MRIS and Brokers use to syndicate the broker’s listings to sites such as Zillow, Realtor.com, Trulia or any other non-MRIS Broker website. Please get your broker’s permission before sending your listings to a public website. Distributing listings belonging to another agent or bro-ker is strictly forbidden and will result in MRIS sanctions.

Delinquent Settlement Date:Don’t be late, update that Settlement Date! If your listing has set-tled, change the status to SOLD. If settlement has been postponed, revise the estimated close date. If the property is not going to close, revise the status to ACTIVE or to WITHDRAWN.

photos:Pictures help listings sell faster and help you avoid a compliance noti-fication! You must add a photo of the exterior of the property within 48 hours of adding a listing to Key-stone. If the seller does not want a photo or you need additional time to shoot a photo, select the “No Photo per Seller” option. You can always upload the photo at a later date.

Other important photo “don’ts”: You may not use a photo from another agent’s listing. Also, don’t upload photos that have

broker or agent branding information or any photos that have text on them (e.g. near metro, great location, freshly painted).

No tax iD Number: Get the Tax ID right! The tax number must be entered exactly as it appears on the MRIS Public Records. To avoid errors, use the Tax auto-fill feature in Keystone. Do not use the street type (Ave., Blvd., etc.) or the Advertised Subdivision in the Tax Auto-Fill search.

Delinquent teMp OFF Status:Don’t forget to take TEMP OFF off! If your listing is in TEMP OFF status, you must change the status back to ACTIVE within 21 days. Should you need additional time, contact the Compliance Department for an extension after you have received a notice.

inappropriate remark information:Lose the numbers! Do not enter phone numbers, contact infor-mation, broker or agent branding, showing instructions or references to compensation in the Internet (Public) remarks. This information may be entered into the General (Agent) remarks.

Delinquent Contingency expiration Date: You’re late for a very important date! Please remember to update your contingency expiration dates if the last contingency expira-tion date (contingency due date) is in the past. If the contingency is third party approval for a distressed sale, you may enter the proposed settlement date in the contingency expiration data field. Once the contingencies have been met, change the status to CONTRACT.

inappropriate Direction information:Where is your listing located? Buyers can find your property if you provide complete directions on listings. References to “Use GPS” or other online mapping programs are prohibited unless the reference is also accompanied by directions.

Ownership:Ownership types and property types are not always equal! Enter the correct ownership type and not the style or type of the prop-erty in the Ownership field. For example, if the property is a townhouse, but the ownership is condo, enter condo under the ownership and townhouse under Type. Ground rent is a specific type of ownership found primarily in Baltimore and part or Anne Arundel County.

Help us keep your data clean and accurate, visit MRISblog.com for regular Compliance tips and reminders! In addition, the MRIS Rules and Regulations, Listing Compliance Reports, and more are always available at MRIS.com/Compliance.

MRIS Compliance Refresher

32 Capital area realtOr® • May/Jun 2014

© 2014 BRER Affiliates, LLC. An independently owned and operated broker member of BRER Affiliates, LLC. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity. Prudential PenFed Realty is an independently owned and operated member of BRER Affiliates, LLC. PenFed Membership is not required to conduct business with Prudential PenFed Realty. We are proud to be an equal employment opportunity employer: m/f/v/d.

*Reimbursement from Prudential PenFed Realty not to exceed $2,500.00 in their first year as a Prudential PenFed Realty sales associate to help offset the fees and costs associated with becoming a real estate agent (“Real Heroes Program”)

**Savings are based on the discounts received by Prudential PenFed Realty’s clients for using Prudential PenFed Realty’s mortgage and title affiliates as compared to purchasing the settlement services from Prudential PenFed Realty’s mortgage and title affiliates without retaining the services of Prudential PenFed Realty.

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CONTACT: 703.877.2714 OR 410.547.5700

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education schedule

July 30, 2014MREC Required SupervisionCEU: 3 hours MD (Required for Brokers; Elective for agents), DC (Elective)Instructor: Jacqueline TalpaTime: 1:30 – 4:30 p.m.

July 30, 2014Veterans Administration (VA) FinancingCEU: 3 hours MD & DC (Elective)Instructor: Jim SemeynTime: 2:00 – 5:00 p.m.* NAR Building/3rd Floor

July 31, 2014Red Flags in Property InspectionsCEU: 3 hours MD, DC & VA (Elective) Instructor: Vimal KapoorTime: 9:30 a.m. – 12:30 p.m.

July 31, 2014Buyer Beware: Foreclosed & Neglected PropertiesCEU: 3 hours MD, DC & VA (Elective)Instructor: Vimal KapoorTime: 1:30 – 4:30 p.m.

August 6, 2014Lunch & Learn Contracts ClassCEU: No CEInstructor: Jill MichaelsTime: 1:00 – 2:00 p.m.

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Visit LongandFoster.com/CareersOr call 866.967.5563

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