pg. 3
pg. 6
pg. 9
Most people have preconceived notions about what it means to go “green.” You may think of big changes such as hybrid cars, low-flow toilets, or solar panels.
Or you may think simpler green thoughts, such as recycling habits, or even Kermit the Frog. No matter what comes to mind, many view going green as something that is either too complicated, too expensive, or just ‘not for me.’ But despite many misconceptions, and the well known wisdom of everyone’s favorite Muppet, it can be easy to be green.
According to data collected by the National Association of Home Builders (NAHB), there was a 20% increase in 2005 among homeowners who were focusing their attention on green building issues. That number is expected to jump to a 30% increase this year. But why this newfound popularity for being green?
that eventually find the way back to the homeowners,” says Emily English, green building manager for NAHB.
With rising energy prices a major concern for homeowners, it’s a welcome benefit that many aspects of building green can provide relief in energy costs. Energy-efficient windows incorporate low-emittance technology that keep homes cooler in the summer and keep heat from escaping during the winter. Newer toilets use redesigned bowls to reduce water usage but still function as efficiently as higher-flow models.
Advanced shower and sink faucet aerators provide the same flow regardless of pressure to reduce water use and the energy required to heat it. Of course, these aren’t just items to be included into a newly built home. Most energy saving appliances, can be easily installed in existing homes, even older ones, creating immediate energy savings and increasing the home’s appeal to potential buyers.
One of the biggest reasons may be the financial advantages to going green. Even though building a new green home will average around 10% more in construction costs, the increased premium is often more than worth it in the long run. And as building green evolves, many contractors learn how to deal with it more efficiently, which can ultimately bring the cost even further down. “Our builders give us examples of how building green is saving them on their bottom line—savings
And it’s not just newer technologies that can make a home green. Simple landscaping changes can also play a big part. Tree preservation and placement can reduce
See GOING GREEN, page 11
THe 10-Second Rule
One of the most common reasons that people find themselves in dangerous situations is that they weren’t paying attention. Take a few precious seconds during the course of your day to assess your surroundings.
Take 2 seconds when you arrive at your destination.
• Is there any questionable activity in the area?
• Are you parked in a well-lit, visible location?
• Can you be blocked in the driveway by a prospect’s vehicle?
Take 2 seconds after you step out of your car.
• Are there suspicious people around?
• Do you know exactly where you’re going?
Take 2 seconds as you walk towards your destination.
• Are people coming and going or is the area unusually quiet?
• Do you observe any obstacles or hiding places in the parking lot or along the street?
• Is anyone loitering in the area?
Take 2 seconds at the door.
• Do you have an uneasy feeling as you’re walking in?
• Is someone following you in?
Take 2 seconds as soon as you enter your destination.
• Does anything seem out of place?
• Is anyone present who shouldn’t be there or who isn’t expected?
Safety in JuSt 10 SecondS it takes just 10 seconds to scope out your surroundings and spot and avoid danger.
See REALTOR® SAFETY, page 13

2 september/october 2006
CAPITAL AREA REALTOR ®
2006 B oard of
d irectors
President
Holly Worthington, CRB, CRS, GRI
President-Elect
Brenda Small, GRI
Treasurer
Joseph Himali, GRI
Secretary
Dennis B. Melby
Immediate Past President
Susann H. Haskins, ABR, CBR, CRS, GRI
Chief Executive Officer/Publisher
Michael Moran
Directors
Janet Ballas, GRI
Sandy Bowser, GRI
Liz Brent, CBR
Sara Lou Cardwell, CBR, CRS, SRES
Anita Centofanti
Mark Drummond, GRI
K. Adrian Hunnings
Christopher Jeffries
Lewis Laws
Sidney Menkis, GRI
Barbara Miles, CBR, GRI, CRS
Shelly Murray
Betty Pair, CBR, CRB
Betty Pelzer-Sharper, ABR, GRI
Nancy Sturgill, ASB, CRS, GRI
Editorial/Advertising
Amy Ritsko-Warren
301.590.8764
AWarren@gcaar.com
Capital Area REALTOR® (ISSN 017-467) is published six times a year (January/February, March/April, July/august,
July/August, September/October, November/December) by the Greater Capital Area Association of REALTORS®,
8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910.
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. Copyright© 2006 by the
Greater Capital Area Association of REALTORS®. All rights reserved.
POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL
AREA REALTOR® , ATTN: GCAAR, 8757 GEORGIA AvENuE,
SuITE 600, SILvER SPRING, MD 20910.
The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed herein do not necessary reflect the opinions 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 remains the property of the 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 all submissions, including camera-ready advertising on disk or film, is the first of the month prior to publication. Reprint with permission only. Reprint permission may be obtained by contacting the Greater Capital Area Association of
REALTORS® at 301.590.2000; via fax at 301.590.2248; or via e-mail at awarren@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.
Serving the Business Needs of OUR Professionals Capital Area REALTOR ®
I N T H I S I S S U E
- GCAAR in the News
- Everywhere Access
3
7
3
7
- Montgomery County &
National Legislative Briefs
- Realtor.com Q&A
11
15 b
The primaries may be over, but don’t forget it still is important to vote on Election Day! Plan ahead to take some time out of your day on Tuesday, November 7 to make your voice heard and vote for the candidates you support. Polls will be open in Washington DC and Montgomery County from 7 am – 8 pm.
of REALTORS® convention in New Orleans, November 10 -
13. Past Presidents George H.W. Bush and Bill Clinton are the speakers for the general session on Saturday, and New Orleans native Harry Connick Jr. will jazz it up at a concert on Sunday.
Dozens of sessions are scheduled to help you improve your business, and the largest real estate Expo anywhere will give you the tools you need to succeed. Check out the full schedule and register today! http://www.realtor.org/convention.nsf/ b
Getting involved in a committee will not only improve your GCAAR experience, it will help improve your business through increased knowledge of the industry and networking opportunities. Committees range from Community Service to Professional Standards. To see the full range of GCAAR committees or to sign up, visit http://www.gcaar.com/ committee/. Committee applications are due Friday, October
20.
b
Don’t miss one of the biggest parties New Orleans has ever seen! Now is the time to register for the National Association b
The dues billing for 2007 will be mailed November 8 and is due December 31, 2006. Don’t fall behind and get assessed a late fee – pay your bill by the end of the year!
b
The new Regional Sales Contract went into circulation
September 1. Are you still not up to snuff on the changes? Check out one of GCAAR’s free training sessions and download or stream the audio from an interview with Contract and Clause
Committee Chairman Chris Darby to understand the changes. http://gcaar.com/about/newregcontract.htm
You are cordially invited to become a Founding Member of the Greater Capital Area Association of REALTORS® Cares Community Fund
The names of the Founding Members will be on permanent display in the headquarters lobby of the
Greater Capital Area Association of REALTORS®
Founding Membership: $1,000 (open to individuals only)
For more information contact Amy Ritsko-Warren at 301.590.8764.
GCAAR CARes CommuniTy Fund
The mission of the GCAAR Cares Community Fund is to support the generous involvement of GCAAR members in the communities they serve, and to promote their giving and service. Through supporting donations to housing related charities and organizing participation in a variety of charitable events throughout the year, GCAAR provides opportunities for its members to contribute time, energy, and effort to their communities. To date, the GCAAR Cares Community Fund has donated over $65,000 to housing related charities since its inception in 2005.
Beneficiaries have included: Fannie Mae Help the Homeless Walkathon, Habitat for Humanity,
Housing and Community Initiatives, Montgomery Housing Partnership, Partnership for Housing
Foundation & Rebuilding Together. For more information about the REALTORS® Care Fund: gcaar.com/care
FoundinG membeRs: Kristin Gerlach, Susann Haskins, John Mammano, Barbara Miles,
Marie K. Shannon, Jackie Simon & Jacqui Taylor (as of August 29, 2006).

On August 12, GCAAR sponsored a “Back to School Bash” held by the Montgomery
Housing Partnership (MHP) at the Great Hope Homes Community Center in Silver
Spring. GCAAR’s sponsorship helped purchase backpacks and school supplies for thirty students to begin the year. The purpose of MHP’s children’s programs is to help bridge the performance gap for children of low-income families by preparing them for success in school.
september/october 2006 Capital Area REALTOR ®
A
Serving the Business Needs of OUR Professionals
Join the GCAAR Cares Crew to help stomp out homelessness in our area. As we’ve done for many years, GCAAR is again a sponsor of this event. WE WANT YOU TO BE A
PART OF IT! It doesn’t cost you anything to join the GCAAR team. (If you choose to do so, you may, of course, make a donation.)
3
Simply email your interest to Wesley Cronkite at wcronkite@gcaar.com and block out the morning of Saturday, November 18 to come down to the National Mall and walk the 5K with us. Bring your office, colleagues, friends, and family. You can wear your company’s shirt and pair it with a GCAAR Cares hat, or ask us for a GCAAR Cares sweatshirt.
Help us show Washington that REALTORS® CARE about housing the homeless!
Andrew Eisel from Gerlach Real Estate helped distribute backpacks to grateful and excited students.
Housing Takes a Hit in ‘Still-strong’ dc Region
“Condos are the slowest part of the market, but that’s because there are so many of them available right now,” says Holly Worthington, president of the Greater Capital Area
Association of Realtors , which represents Realtors in DC and Montgomery County. “The single-family market is still strong. There have been fewer sales and homes are staying on the market longer, but it’s a healthy market to buy in.” - Washington Business Journal, June 16-22, 2006
Personnel
The Greater Capital Area Association of Realtors named Susann Haskins, a Long & Foster agent who was the association’s president in 2005, as its 2006 Realtor of the year.
- Washington Post, July 15, 2006 cropp picks up another endorsement for dc Mayor
…the latest business group to endorse Cropp is the dC Association of Realtors .
- Washington Business Journal, July 18, 2006
The Gift of endorsement
Silverman has also been endorsed by some county groups including…the Greater Capital Area Association of Realtors and the Montgomery County College Democrats.
- Washington Post, July 20, 2006
In a Slowing Market, Price is only the First Step
Holly Worthington, president of the Greater Capital Area Association of Realtors and a managing broker for Long & Foster in Woodley Park, said single-family houses that sit for three to four weeks need an adjustment. The amount “depends on how much very similar inventory there is in that particular area.” She defines the area as “that particular Zip code, because buyers generally look beyond a specific neighborhood.”
In the condominium and townhouse markets, those with the lowest price win, agents say. “And it’s getting that way for single-family homes,” Worthington said.
- Washington Post, July 29, 2006 local news
GCAAR member dianne bailey appeared on Channel 22-WETA and Channel 26-Maryland Public Television, on August 18 for a segment on closing cost credits.

MergerAd_GCAAR 8/30/06 5:23 PM Page 1
4 september/october 2006 Serving the Business Needs of OUR Professionals
Capital Area REALTOR ®
*Including our commercial divisions
w w w. r g s t i t l e . c o m

Capital Area REALTOR ® Serving the Business Needs of OUR Professionals september/october 2006 5
MD Legal Update
9:30 am – 12:30 pm
CEUs: 3 hours MD (required) &
DC (elective)
Location: Hilton in Gaithersburg
620 Perry Parkway, Gaithersburg, MD
Early bird— $40/$65
After 09/24— $65/$65
MD Fair Housing Update
1:30 – 3 pm
CEUs: 3 hours MD (required) &
DC (elective)
Location: Hilton in Gaithersburg
620 Perry Parkway, Gaithersburg, MD
Early bird— $25/$40
After 09/24— $40/$40
MD Legal Update
3:15 – 4:45 pm
CEUs: 3 hours MD (required) &
DC (elective)
Location: Hilton in Gaithersburg
620 Perry Parkway, Gaithersburg, MD
Early bird— $25/$40
After 09/24— $40/$40
Home From Work
9:30 am – 12:30 pm
CEUs: 3 hours DC & MD (pending)
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
$25/$25
DC Legislative Update & Landlord/Tenant
Rights
1:30 – 4:30 pm
CEUs: 3 hours DC (required), no MD or VA credit
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $40/$65
After 10/04— $65/$65
Contract Basics Class
9 am – 4 pm
CEUs: No CE
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
**FREE**
GRI 202: Contract Law & Condos and
Coops
9 am – 4 pm
CEUs: 6 hours DC & MD, 3 hours VA
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/09— $110/$140
GRI 301: Environmental Issues &
Contracts, Settlement Procedures &
Disclosures
9 am – 4 pm
CEUs: 6 hours DC & MD, 3 hours VA
Location: GCAAR Conference Center,
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/30— $110/$140
GRI 203: Interpersonal Skills & Personal
Assistants
9 am – 4 pm
CEUs: 6 hours DC & 3 hours MD
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/11— $110/$140
GRI 302: Taxes
9 am – 4 pm
CEUs: 6 hours DC, 4.5 hours MD, & 3 hours VA
Location: GCAAR Conference Center,
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 11/01— $110/$140
GRI 204: Advanced Financing & Tenants
Rights
9 am – 4 pm
CEUs: 6 hours DC & MD
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/14— $110/$140
GRI 303: Professional Standards,
Mediation, Arbitration, and Procuring
Cause
9 am – 4 pm
CEUs: 6 hours DC & VA, no MD credit
Location: GCAAR Conference Center,
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 11/04— $110/$140
GRI 201: Pricing Property & Appraisal
9 am – 4 pm
CEUs: 6 hours DC & 3 hours MD
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/02— $110/$140
DC Fair Housing & Predatory Lending
9:30 am – 12:30 pm
CEUs: 3 hours DC (required), no MD or
VA credit
Location: GCAAR Conference Center,
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $40/$65
After 10/04— $65/$65
GRI 205: Agency Law & Buyer
Representation
9 am – 4 pm
CEUs: 6 hours DC, MD, & VA
Location: GCAAR Conference Center
8757 Georgia Ave., Suite 600, Silver Spring
Early bird— $75/$110
After 10/17— $110/$140

6 september/october 2006 Serving the Business Needs of OUR Professionals Capital Area REALTOR ®
By Fred Flick, Ph.D., Consultant/Housing Economist
By Peter Clute and Fred Kendrick
THe MARYlAnd BIG PIcTuRe The housing market slowed further in July. New contracts for condominium and cooperative units reached a five-month low while sales of single-family homes were at their lowest monthly level of the year.
Looking at Maryland as a whole, June year-to-date sales totaled 40,491 homes, but they have slipped
17% from the first half of 2005. This is a market
“correction” caused by fewer “deep-pocket” buyers in the market place and sellers who are hanging onto the prices of the recent past. Due to the “stickiness” in prices, annualized price appreciation rates still have been good. For the first six months, Maryland prices averaged over $354,000 -- rising 9.5% above the same period a year ago. But, this rate of increase is below the
11.8% rate for the first 4-months of the year.
Fred Flick However, the unit decline is hurting brokers and agents. Cumulative dollar volume through June was a bit over $14.3 billion and for the same period a year ago it was almost $15.8 billion -- a drop of over 9%. Unfortunately, June contracts were down by almost 6% compared to June 2005. A big factor affecting prices is the level of inventory. The June inventory of 187,893 units statewide was 136% of the
June 2005 level. Accordingly, it will take a while to whittle down this over-hang, and that will eventually cause price appreciation to adjust to lower levels.
Seven months into 2006, the combined sales volume of residential homes and units is 17% lower than it was a year ago at this time. It is also lower than in each of the three previous years but for these years the major cause of the decline is the sharp slide so far in 2006 in the number of single-family home sales.
Fred Kendrick
Compared to 2005, the single-family decline is in almost every price range while nearly 70% of the condo and co-op price ranges show lower numbers. Compared to the 2002-2004 period, home sales are down by over
35% while unit sales show gains of 11% to 23%.
The overall inventory of residential properties for sale has remained relatively level over the last three months although it is substantially higher than earlier in the year and higher by far than in all of 2005. There is now a 4.5 month supply of homes and units for sale whereas a year ago this supply index stood at 1.4 months. In perspective, the
National Association of REALTORS® reports that the average national inventory now stands at over 6 months.
SInGle FAMIlY HoMeS
For Montgomery County, June single-family sales were significantly down, but prices were still showing ability to move up. This softness in the pace of sales will continue and appreciation rates will also slow in the near term.
Compared to a year before, June sales continue to trend down. Year-to-date contracts
(5,669) declined about 22%, and the monthly contracts (920) dropped over 39% from a year earlier. Settlements performed similarly. Year-to-date settlements (5,064) dropped 17.5%, and June settled sales (1,011) fell 29% compared to last year.
While monthly listings are down compared to a year ago, there still is a huge inventory bulge. On the supply side, June total active listings of 3,834 are still up over 162% from the level of June 2005. For the month, there were 1,936 new listings, but these were down only 3.4% from the same month in 2005. At this recent contracts pace, there was a 4.2 months supply of actives.
Sales prices continue on a much more even pace than in the last several years. Seven months into 2006, the average sales price for all residential properties was essentially the same as at the end of 2005, but it was somewhat higher for single-family homes and slightly lower for condos and co-ops.
SInGle FAMIlY HoMeS
New contracts for single family homes in July dropped 13% from the number in June and were down 19% from July of 2005. Sales were off in most price ranges, but gains were seen by homes priced from $500,000 to $600,000
(+28%), $800,000 to $900,000 (+16%),
$1,000,000 to $1,250,000 (+56%) and over $1,500,000 (+78%).
Rachel Lenehan, Esq.,
R. Bradley Runyan, Esq.
& Patrick Tangney, Esq.
Nevertheless, single-family home prices continued to move up. June single-family home prices averaged about $595,700 – rising 5.7% from a year ago. The month-tomonth rates of price increase are lessening with the slowing market. At the middle of the price distribution, the June single-family median price came in at $486,173 moving just 4.6% above its 2005 value. condoMInIuMS And cooPeRATIVeS
In Montgomery County, the condo/coop market continues to be the weakest segment of the housing market. June stats continue to show weakness in both contracts and settled sales compared to a year ago. Nevertheless, prices still rose, but at much slower rates. Again, the huge inventory of active listings is keeping the pressure on.
Compared to June 2005, the month’s new listings (496) rose 7.8%, but total actives
(1,025) were an astounding 277% above. At the monthly contracts pace, there was a
3.5 months supply of actives on the market.
Accordingly, the pace of condo/coop contracts and settlements has been leveling off.
Year-to-date settlements (1,553) slipped 17% and June settlements (273) dropped
25% from a year ago. As we would expect, the large inventory is taking its toll on condo/coop price appreciation. The June condo/coop average price hit $310,764
– rising only 1.4% over a year ago. And, while the June median price was up 3.2% to $283,900, we can see price appreciation rapidly softening in this market. The midpriced condos are selling, and there is a flattening in prices for the higher end units.
RecenT econoMIc TRendS
The Fed Funds rate moved to 5.25% in June. Recent economic activity suggests
See MC MARKET, page 12
For the year-to-date, single-family sales are down 18% from a year ago with sales gains only for homes priced from
$1,000,000 to $1,250,000 (+ 18%) and over $1,500,000 (+6%). This increase in upper-bracket home sales in July, and throughout much of the year so far, is one explanation why average sales prices are higher despite the overall downturn in the single-family market.
There is currently a 4.3 month supply of homes for sale in Washington. The inventory is up 60% from the beginning of the year and double that of a year ago.
There was a particularly large number of homes available in the $300,000 to $700,000 price range and over
$1,500,000.
At Stewart Title Group, attorneys always review and settle your client’s transaction.
We also employ the latest technologies such as
SureClose 24/7 fi le access and E-Recordings.
Clients will thank you for the recommendation and you’ll have more time to fi nd new listings & sales.
A fully satisfi ed client brings you many referrals.
Please recommend us.
The average sales price of single-family homes is up 4% from all of 2005 and
6% when compared to this time a year ago. The median, or mid price, is up only 0.2% compared to 2005. In either case, these are very modest increases compared to the 23% average price increase in 2005 and the 15% increase in 2004.
See dC MARKET, page 12
202-349-0220 www.stewarttitlegroup.com
Professional & Experienced Residential and
Commercial Settlements in DC, MD, VA & WV

Capital Area REALTOR ® Serving the Business Needs of OUR Professionals september/october 2006
T e c h n o l o g y
New technologies and tools deliver on the promise of the virtual office.
By Mike Antoniak
Web-based faxing are essential to mobile productivity. Instant messaging is becoming an increasingly popular form of correspondence, especially with younger consumers.
You also need control over how correspondence is routed to you and retrieved from any location and a solution for sharing documents electronically. These require a voice and data plan and strategy for wireless Web access. If hot spots are abundantly available in
Remember the first time you heard the term virtual office? your area, or you can plan your day around them, they’ll suffice. Otherwise, broadband
More than a decade ago, there was more promise than practical value to the term. It wasn’t until the roll-out of “hot spots” and wireless Wi-Fi networking that most could actually work in the field with the same efficiency as in a conventional office. Of course, if you strayed from a hot spot, you’d lose your Internet connection.
Over the past year or so, cellular service providers have made strides with broadband cellular service, which finally delivers the true potential of the virtual office. For example,
Cingular Wireless, with its EDGE technology, and Sprint/Nextel and Verizon Wireless with their EV-DO technology, are expanding a new infrastructure that will liberate you from the hot spot. With either system, mobile practitioners can have broadband Internet access anywhere and anytime cellular service is available.
Microsoft is also taking steps to make working virtually a practical option for all. Late in June the company unveiled its plans for a “unified communications strategy.” The strategy will combine the capabilities of mobile hardware and wireless technologies with software that enables a sort of moving control center. Users will have 24/7 access to all their communications and information resources from any device, from any location.
cellular service programs make sense.
• Adequately equip yourself. The hub of the virtual office is hardware that allows you to run software, work with documents, and access the Web. With smartphones, your choice in hardware will be determined by your wireless provider. Providers offer a range of models compatible with their system and services. Those who expect to rely primarily on a notebook enjoy more latitude. Wireless modem and Wi-Fi networking are now built into many models, or available as PC cards to make the systems compatible with different services.
• Consider software. With a notebook, your software travels with you. As you move to more compact devices, though, you may require specialized versions of applications you use — or new software entirely — to remain productive. Whether you use software installed on your hardware or Web-based applications, the basics include a
Web browser, contact manager with calendar, and a productivity suite.
The virtual office may also introduce some unique software requirements for activities such as mobile MLS access, creating mini tours sent from the field, and working with electronic forms and contracts. Avanquest Software’s Connection Manager, for example, automatically detects available networks for connecting to as you travel about, then manages those connections in a secure environment.
HoW To GeT STARTed
In real estate, where quality of service is often evaluated in terms of responsiveness, it’s no longer a question of if but how you’ll work from a virtual office.
Although it’s been a long time coming, the promise of the virtual office is finally available and accessible.
7
Mike Antoniak is a freelance journalist who writes frequently on technology.
Reprinted from realtor.org, REALTOR® Magazine Online.
© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®
To get started on your virtual office:
• Determine your communications needs. Voice calling, mobile e-mail, and
3
%
*
Single Family Homes Now Selling from the $500’s. Townhomes Now Selling from the upper $300’s.
At Greentree Homes, our broker compensation is as great as it has always been—a full 3% on the total sales
price, including options.* Rest assured, this isn’t a limited time opportunity. It’s what you can expect every time you bring a client to Tuscarora Creek, Frederick’s most exciting new planned community featuring single family homes, townhomes, a planned recreation facility, pool, childcare, ball fields and more. Visit today.
From Washington or Baltimore, take Rte. 15 N. to L. on Hayward Rd. to R. on Opossumtown Pike. Follow
Opossumtown Pike 1/4 mi. to L. on Poole Jones Rd. Follow Poole Jones Rd. which becomes Walter Martz Rd.
Continue Straight for approx. 1/2 mi. to Sales Center on R. For complete information, please call 301-620-9455.
Open Daily 11-6.
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*Commissions based on full sales price including options. See Community Sales Consultant for complete details. Subject to change without notice.
MHBR#848

8 september/october 2006 Serving the Business Needs of OUR Professionals
By Benny L. Kass
Below are some of the questions asked since first starting the HotLine Program for
Washington DC. The answers provided here are the opinions of the author, and are for informational purposes only for the members of the Greater Capital Area Association of
REALTORS®. He is not providing legal advice, but rather providing only 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.
Q: I have a property I want to rent but I do not usually handle rentals. I ran a credit check on a prospective tenant and the results came back “not so great.” Can I ask the tenant for proof of income, such as bank statements and statement of assets and liabilities? I have already asked for personal and professional references, as well as a reference from the previous landlord. If the prospective tenant refuses to provide this information, can he be rejected for the rental?
A: In my opinion, you would be derelict in your duties if you did not ask for proof of financial wherewithal. You owe a duty to the property owner to make sure that you will get a solid tenant. You should also make inquiry of the potential tenant’s bank and employer.
The bank and the employer will not provide you information because of the privacy act, but they should be able to confirm your statements. i.e.: “John Smith said that he earns xx dollars a month; can you confirm?”
Unfortunately, some references may not tell the entire truth. For example, a landlord may be so anxious to get rid of a tenant that a good reference may be provided even if undeserved. While this is not proper, it does happen.
If the potential tenant refuses to provide you with relevant, pertinent information, you can reject him/her. The human rights act in DC prohibits anyone from discriminating against such classes as “age, race, religion, sexual preference, etc.” To be on the safe side, do your homework before you turn this person down.
Capital Area REALTOR ®
Q: A brother and sister were tenants in common on a property they purchased together. The sister died, and now her heirs (two sons) are claiming they are not obligated or responsible for paying their mother’s share of the mortgage. Is this correct?
A: This is a legal question outside the scope of my hotline, and not one which I normally answer. I do not know all the facts, so I cannot provide you with a complete response, but below are some things to consider.
First, on the death of the sister, since property was held as tenants in common, the sister’s estate has to go to probate. Currently, unless there is a probate initiated and a personal representative (PR) appointed by the court, the sister’s share (which I assume is half) is in limbo. The property cannot currently be sold. Once a personal representative is appointed, the sister’s share of the property will vest by operation of law into the PR. The PR will have to publish notice of the death and although the property can be sold (if that’s what the brother and/or the heirs want) the sales proceeds must be held for a six month period during the advertising (publishing) period.
Did the sister have a will? If not, then by operation of the law of intestacy, blood relatives, etc. will inherit her share.
Assuming that the two sons want to preserve any rights they may have in the property, they should continue to pay their mother’s share of the mortgage. Otherwise, the lender will (1) institute probate proceedings and (2) then foreclose, and the sons will lose out, as will the brother.
However, the brother should carefully read the promissory note he and his sister signed when they bought the property. I suspect that the language reads that the parties are
“jointly and severally” responsible to make the monthly mortgage payments. If that’s the case, the brother must also make sure that the mortgage, insurance, and real estate taxes are kept current, or the lender will foreclose and everyone will lose out.
The brother would be advised to seek legal counsel to determine his rights.
Q: Can a potential purchaser receive a gift (from a relative or anyone else) in order to purchase real estate without having to pay tax on the gift? I have a prospective client in a situation where someone wants to help them purchase property in DC.
A: Under current law, individuals can gift up to $12,000 per year without having to worry about a gift tax. For example, a husband and wife (as two individuals) can give each of their children up to $24,000 per year. However, you have to confirm with the lender whether they have a limit on the gift amount a borrower can receive.
Under new rules of the IRS, I am obligated to disclose the following:
“IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the
IRS, please be advised that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.”

A
PPRAISERS
David Fellows
A. Aaron & Fellows
410-643-0331
3015957540@proj2000.com
Paul D’Anna
A-1 Appraisers Limited
240-246-0312 pjd2727@aol.com
Jennifer Cayzedo
AJC Appraisals LLC
301-706-9668 ajcmanagement@verizon.net
Anita Knight
Anita Knight Apprasial
202-244-4810 a.knight9@verizon.net
Anne Powell
Anne M. Powell Appraisals
410-721-7505
Patrick Raphael
The Appraisal Circuit
240-286-8977 patraphael@comcast.net
Lyle Waldron
Appraisal Data Services
301-260-7668 lwaldron@appraisalds.com
Robert Jeffery
Appraisals Plus
301-924-6825
Scott Begab Appraisers
703-317-9770
Kevin Donoghue
Around Town Appraisals
240-723-1175 kevin@campdonoghue.com
Janiece Miller
Barlow Appraisal Services
301-371-6155 carlsjem@msn.com
John Battiste
Battiste Appraisals
410-916-3032 bigjbatty@adelphia.net
Bashir Lawal
BBX Appraisals
301-577-8073 blawal@bbxappraisals.com
Donald Burke
BK Appraisal Group
301-384-1080 donaldlburke@verizon.net
Shawn Bounds
Bounds Appraisal Services
240-505-3420 shawnbounds@comcast.net
Bruce Flanagan
Bruce Flanagan Appraisals
301-254-8220 brappraisal@aol.com
Barry Moss
Capital City Appraisers
202-333-1024
Carl Dorr
Carl D. Dorr Licensed Appraiser
301-564-4987 carl_dorr@hotmail.com
David Sherman
David Sherman T. A. David Gery
301-587-5750 bjls@mindspring.com
Cecily Dichov
Dichov Appraisals LLC
301-774-1791 cdichov@aol.com
Colleen Williams eAppraisal Group
301-414-0050 grandcentrale@hotmail.com
John Haske
John Haske & Associates
703-241-8004 johnhaske@hotmail.com
Joyce Smith
J-S Appraisals, Inc.
301-831-9407
JMS1010@adelphia.net
Kevin O’Meara
Kevin L. O’Meara, Inc.
703-799-4222 komeara@cox.rr.com
Larry Rushing
Larry Rushing & Appraisers
301-350-5602 larushin@earthlink.net
James Leonard
Leonard Appraisal Service
301-330-0328
Steven Kim
LTI Appraisals
301-490-7977 ltisk@juno.com
Wayne MacDonald
The MacDonald Group/Appraisals
301-208-9800
MacDonaldGroup@prodigy.net
Marc Rosenbloom
MJR Realty & Appraisers
301-840-8084 mjrappraisers@erols.com
John Hamalainen
Montgomery Appraisal Group
301-879-3204 hamalainen@comcast.net
Belinda Musser
Musser Appraisal Service
301-515-9670 darlenemusser@comcast.net
Diana Kang
Nations Appraisal Services
301-767-0800
Pamela Wilson
Omni Appraisal Service
301-972-2878 pamela.wilson29@verizon.net
Folusho Bello
Foremost Appraisals & Realty
301-925-7414 joshforemostappraisals.com
Gerald Brown
Gerald Brown Realtor® Appraiser
301-449-4450 gs-b@msn.com
John Egly
J. D. Egly & Assocs. Appraiser
301-428-0113 john.egly@verizon.net
John Neale
J. N. Appraisal
301-947-6552
John Lawson
J. Thomas Lawson
Appraisals, Inc.
410-357-9582 jtltoolman@aol.com
Jack Machlin
Jack Machlin Appraiser
301-384-4848
James Davis
James J. Davis Appraiser
301-656-4779 davisjim@comcast.net
Daniel Cunningham
JDC Appraisals, Inc.
301-438-3300 jdcappraisals@aol.com
Jeffrey Money
Jeffrey X Money Appraisals
301-924-1564
John Sood
JLS Appraisals, Inc.
301-519-1999
Nicholas Johnson
Phoenix Appraisals
301-459-4595 kaoskomm@aol.com
Paul Hlubb
Buhl Enterprises, Inc.
410-988-8041 paul@paulhlubb.com
Thomas Connelly
Reliable Appraisal Service
240-882-9700 tomc2@comcast.net
Joanie De Polanco
Residential Appraisal Services
301-528-9506 jdepolanco@yahoo.com
Valerie Rohn
Residential Appraisal Srvc LLC
301-946-5668
3016130153@proj2000.com
Richard Sherman
RGS Appraising, Inc.
301-933-8401 rgsappraising@comcast.net
Roxann Novel
Roxann B Novel Appraiser
800-232-7196 novelr@earthlink.net
Richard Mulderick
Severna Park Appraisal Service
410-544-8690 mulderick@atlanticbb.net
Michael Sarvi
SFS Appraisal Services
301-924-7175 sfsreappr@mindspring.com
Edrolph Shiver
Shiver Appraisal Service
410-488-3140
4103674549@proj2000.com
Milton Bernard
Star Appraisals
301-294-0987 dcrpk@aol.com
Thomas Hartnett
Thomas P. Hartnett Jr.
301-384-7433 thartnett@verizon.net
William Todd
Todd Appraisals
301-469-9330 toddappraisals@mris.com
Lynda Lin
UNI Appraisal Services
301-942-8101
Edward Dunn
Universal Appraisal Services, Inc.
301-306-1066
Valu8ed@aol.com
Michael Heup
USAppraisal
410-216-6160 mikeheup@aol.com
Jeffrey Vinson
Vinson Appraisal & Brokerage
301-260-9050 jw.vinson@verizon.net
Frank John
Washington Appraisal
202-646-1150 fjohn@washingtonappraisal.com
Martin Van Kirk
Washington Appraisal Group, Inc.
301-907-9003 mvankirk@mris.com
William Woolford
Woolford Appraisal Service
202-986-9720 was@mris.com
William Thornton
WPT Appraisals, Inc.
301-233-1168 vit7060@earthlink.net
A
S
D
Ronald Chasen
Chasen & Chasen
202-244-4000 chasen.admin@verizon.com
Kenneth Tecler
Chen Walsh & Tecler
301-279-9500 kbt@cwtm.net
Craig LeVine
Craig A. LeVine LLC
301-490-7333 calevine@comcast.net
David Podolsky
David R. Podolsky Atty at Law
301-340-2020 dpodolsky@steinsperling.com
G. Michael DuFour
DuFour & Orens Chtd
301-986-4142 mdufour@dk-lawfirm.com
Jennifer Murphy
DuFour & Orens Chtd
301-986-4142 jmurphy@dk-lawfirm.com
Stephen Orens
DuFour & Orens Chtd
301-986-4142 soren@dk-lawfirm.com
Nathan Finkelstein
Finkelstein & Horvitz PC
301-951-8400
NatF@FandHLaw.com
Frank Donnelly
Frank Donnelly Attorney
301-249-8230
Abraham Greenstein
Greenstein DeLorme & Luchs PC
202-452-1400 ajg@gdllaw.com
Richard Luchs
Greenstein DeLorme & Luchs PC
202-452-1400
Vincent Mark Policy
Greenstein DeLorme & Luchs PC
202-452-1400 vmp@gdllaw.com
Hal Epstein
Hal J. Epstein Attorney
301-681-3833
George Massen
Hamilton & Hamilton LLP
202-463-8282 gtm@hamiltonlaw.com
A
TTORNEYS
Aaron Stein
Aaron Lee Stein Attorney
301-948-2383
Timothy Choppin
Akin Gump Strauss Hauer & Feld
202-887-4196 tchoppin@akingump.com
Michael Mandel
Akin Gump Strauss Hauer & Feld
202-887-4196 mmandel@akingump.com
Earl Segal
Akin Gump Strauss Hauer & Feld
202-887-4196 esegal@akingump.com
Alice Scanlon
Anderson & Quinn LLC
301-762-3303 ascanlon@andersonquinn.com
Andrew FitzGerald
Andrew FitzGerald Atty at Law
301-933-6550 andyfitz@erols.com
Jonathan Bromberg
Bromberg Rosenthal LLP
301-251-6200 jrbromberg@brsglaw.com
Harry Sewell
Harry B. Sewell Jr. Chtd
301-949-4656
Roy Kaufmann
Jackson & Campbell PC
202-457-6710 rkaufmann@jackscamp.com
Harvey Jacobs
Jacobs & Associates Attorneys
301-251-5480 jacobs@stressfreesettlements.com
John Wolf
John F. Wolf Jr. Attorney
301-951-0940
Judith Baker
Judith E. Baker Attorney
301-258-9636 judy_baker@yahoo.com
Benny Kass
Kass Mitek & Kass PLLC
202-659-6500 blkass@kmklawyers.com
Daniel Kotz
Kayton & Kotz LLC
301-770-4107 dankotz@aol.com
Helen Dankos
Kidwell Kent & Curran
301-984-1212 hadankos@kidwellkent.com
J. Laurence Kent
Kidwell Kent & Curran
301-984-1212 jlkent@kidwellkent.com
Arthur Konopka
Law Office of Arthur Konopka
202-686-0600
AFK@RElawpro.com
Ezio Borchini
Law Office of Ezio E. Borchini
301-654-8600
Mark Bayer
Law Office of Mark A Bayer
202-466-4747 mabayer@erols.com
Robert McCarthy
Law Office of Robert McCarthy
301-654-3730
David Modell
Law Offices of David P. Modell
301-634-9820 dmodell@modell-law.com
William Gessner
Law Offices of Quinn O’Connell
202-537-1820 wjg@qlawdc.com
Quinn O’Connell
Law Offices of Quinn O’Connell
202-537-1820 quinn@qlawdc.com
Rachel Conlan
Long & Foster Real Estate, Inc.
703-359-1930 rachel.conlan@ longandfoster.com
Marianne Cantwell
202-305-3509
Steven Skalet
Mehri & Skalet PLLC
202-822-5100
Miller Redden
Miller S Redden Attorney
301-468-1080
Paul Aiken
Moses & Aiken LLC
301-881-4860 casey@mosesaiken-law.com
Robert Moses
Moses & Aiken LLC/Home Team
301-468-0080 rwmoses@mosesaiken-law.com
Diane Fox
Paley Rothman
301-951-9336
Stephen Paley
Paley Rothman
301-656-7603
Linda Schwartz
Paley Rothman
301-656-7603
Brian Josef
Press & Press PLLC
202-333-5070 bjosef@press-law.com
Michelle Press
Press & Press PLLC
202-333-5070 travel@press-law.com
Morton Press
Press & Press PLLC
202-333-5070 mpress@press-law.com
Richard Lawlor
Richard W. Lawlor PA
301-340-2400
Robert Gingell
Robert A. Gingell Esq.
301-949-0100
RAGingell@aol.com
Russell Rosenblum
Rosenblum & Associates LLC
301-657-1199 russell@raug.com
Randy Rothstein
Rothstein & Associates PA
301-986-1114 rrothstein@paragontitle.com
Duncan Black
Sack & Harris PC
703-883-0102 dblack@sacklaw.com
Robert Black
Ward & Klein Chartered
301-258-9777 rblack@ward-klein.com
Thomas Gibbons
Ward & Klein Chartered
301-258-9777 tgibbons@ward-klein.com
Richard Ross
Ward & Klein Chartered
301-258-9777 rross@ward-klein.com
C
OmmISSION
AdvANcES
Jacques Khoriaty
Commission Express
301-941-1919 manager@commissionexpressmd.com
C
OmPUTER/
INTERNET
Marvin Beriss
MB Associates, Inc.
703-385-3515 mbaiform@mbaiforms.com
C
ONSTRUcTION
Jeffrey Ott
Centex Homes
703-679-1835 jmott@centexhomes.com
Continued on Back

F
INANcIAL
SERvIcES
William Erlenbach
American Home Mortgage
240-644-6183 bill.erlenbach@americanhm.com
Brian Fein
American Home Mortgage
703-917-0575 bfein@americanhm.com
David Jacobin
B. F. Saul Mortgage Co.
240-497-8055
Juan-Carlos Arroyo
BB&T Mortgage
301-644-6410 jcarroyo@bbandt.com
Tom McCabe
BB&T Mortgage
301-217-0313 tmccabe@bbandt.com
Christopher Smith
BB&T Mortgage
301-916-2821 csmith@bbandt.com
Patricia Widerman
BB&T Mortgage
301-947-3060 pwiderman@bbandt.com
Russell Rothstein
Beacon Mortgage
301-984-3600 rothstein@ ebeaconmortgage.com
Nancy Hammann
Capital Area Realtors® FCU
240-314-0734 info@carfcu.org
Anthony Launi
Capital Area Realtors® FCU
240-314-0734 info@carfcu.org
Todd Lubar
Charter Funding
301-816-2800 todd.lubar@charterfunding.com
Joel Epstein
Charter Funding
301-816-2800 joel.epstein@charterfunding.com
C
Ellen Linder
Creative Comm Mgmt Solutions
301-294-5910 elin144@aol.com
C
ORPORATE
HOUSING
Elizabeth Karp
Execustay, Inc.
301-212-9660
Kathy Brockway
Oakwood Corporate Housing
301-527-2866
Darlene Davis
Oakwood Corporate Housing
301-527-2866 ddavis@oakwood.com
E
ONSULTING
NERGY
SERvIcES
Daniel Elgin
Griffith Energy Services, Inc.
800-570-4664 delgin@griffithoil.com
E
NvIRONmENTAL
SERvIcES
Paul Ramsey
RTS Environmental Services LLC
301-607-6276 info@rtsenvironmental.com
Joseph Hare
FNMC The Mortgage Co.
301-962-1520 joe_hare@ncm.com
Brian Martucci
GetLoans.com Mortgage Broker
202-588-2400 brian@getloans.com
Denise Johnson
GMAC Mortgage
240-686-1817 denise_johnson@gmacm.com
Patti O’Connor
GMAC Mortgage
240-686-1817 patti_oconnor@gmacm.com
Samuel Sanchez
GMAC Mortgage
202-841-1600 samuel_sanchez@gmacm.com
Jay Laglenne
HSBC Mortgage
800-537-8705
Sharon O’Brien
Hyland Financial
301-682-5303 sobrien@hylandfinancial.net
James Benton
Montgomery Residential Mort Co.
301-548-0665 j.terrell.benton@earthlink.net
David Illes
Morgan Stanley
301-961-1809 david.illes@morganstanley.com
Michael Parsons
Nationwide Home Mortgage, Inc.
301-610-9600 nhmortgage@aol.com
Richard Bianco
SunTrust Mortgage
703-267-0114 rick.bianco@suntrust.com
Patrick Casey
SunTrust Mortgage
301-517-5301 pat.casey@suntrust.com
Frank Donnelly
SunTrust Mortgage
202-624-1245 frank.donnelly@suntrust.com
Skeeter Worthy
SunTrust Mortgage
301-517-5301 skeeter.worthy@suntrust.com
John Hodges
Choice Finance Corp
301-881-8900 johnhodges@choicefinance.net
William Matson
Choice Finance Corp
301-881-8900 bj@choicefinance.net
Barbara Sumney
The Columbia Bank
410-423-8250 bsumney@ thecolumbiabank.com
Alberto Leguizamon
Embassy Mortgage
301-565-5973
Stephen Greene
F&M Bank Northern Virginia
301-961-9634
Paul Noone
Fidelity & Trust Mortgage, Inc.
301-657-8747 pnoone@ftmortgage.net
Dylan Jones
First Franklin
800-237-9103 talia.hewan@ff.com
MaryJane Boyle
First Horizon Home Loans
301-493-8075 mjboyle@firsthorizon.net
Donald Littleton
First Horizon Home Loans
301-840-3885 dlittleton@firsthorizon.com
J. Christopher Warner
Washington Mutual Home Loans
301-718-4821 chris.warner@wamu.net
Dominic Turano
Wells Fargo Home Mortgage
202-216-5704 dominic.turano@wellsfargo.com
Charles Vance
Wells Fargo Mortgage
301-984-1880 charlie.vance@wellsfargo.com
Irene Trammell
Haines & Company
301-736-2720 trammell5@comcast.net
Michelle Widmayer
Haines & Company
301-736-2720 michelewidmayer@aol.com
Johnice Rosenfeld
RAD Communications
301-519-7525 j.rosenfeld@radcommunications.com
R
EFERRAL
SPEcIALISTS
Joanne Weber
301-972-8493 jwdarline@aol.com
George Doore
PAWCO Real Estate
301-572-4939
Stan@doore.net
F
URNITURE
RENTAL
Alice Wilson
Antique & Contemporary Leasing
703-548-2050 info@antiqueleasing.com
H
OmE
INSPEcTORS
Melissa Brois
Alban Home Inspection Svcs, Inc.
301-662-6565 mjbrois@aol.com
Bill Gray
All Star Home Inspection, Inc.
301-309-0303
Vimal Kapoor
Building Inspector of America
301-916-0300
Gary Anderson
Building Specs
301-855-3337
Mark Dewey
Home Pro Systems, Inc.
703-560-4663 mark@tlcinc.net
Ryan Siegler
Home Smart Home Inspections
301-390-4663 rwseegs@yahoo.com
Dwight Reynolds
HouseMaster of America
301-424-9360 dreynolds@housemaster.com
Alan Beal
Mid-Atlantic Inspection Srvcs
202-607-4153 abeal@midatlanticinspections.com
Earnest Epps
Premier Home Inspection
540-785-4524 eppscos@yahoo.com
Tory Hunnicutt
T & T Inspectors
202-236-0616 torycutt@yahoo.com
I
Craig Beden
Kimpel & Beden Insurance Svcs
703-847-3144 craigb@capfinpartners.com
M
NSURANcE cOmPANIES
ARKETING
SERvIcES
Sheri Sylvester
Adzig Logo Promotions
703-309-5502 sheri@adzig.com
Robert Treadway
AvantEdge Media Solutions LLC
202-210-3277 rob@avantedgemedia.com
Victoria Jackson
Haines & Company
301-736-2720 hainesdl@aol.com
M
Doug Baum
Gazette Papers
301-670-2546 dbaum@gazette.net
EdIA
Donald David
Home Preview Channel
734-669-8033 support@hpctv.com
Kate Humphries
Washington Post Newspaper
202-334-7638
S
ETTLEmENT
SERvIcES
Lawrence Arch
CorTitle LLC
301-610-6333 larry@cortitle.com
Ralph Bernards
Cosmopolitan Settlements
301-588-6710 ralph@cosmosettlements.com
Andrew Polott
Democracy Title Corp
301-571-0800
Steven Sushner
District Title A Corp
202-518-9300 steve@districttitle.com
Barbara Johnston
Washington Post Newspaper
202-334-7638
Alan Lovinger
Always Keep In Touch
702-743-3461 lovinger0151@earthlink.net
Yigal Narkis
Express Title Co
301-231-8200 yigal@expresstitle.com
Kimberly Henderson
Greater Washington Urban League
202-667-1530 kimhenderson@gwul.org
Linda Oltmanns
My Moving Office
216-374-2611 loltmanns@adelphia.net
Richard Phillips
SwiftVal
703-459-8802 rick@swiftval.com
James Miller
Triangle Communities
919-401-4577
Wayne Schrifrin
Express Title Co
301-231-8200 wayne@expresstitle.com
Charles Tobias
Express Title Co
301-231-8200 charlie@expresstitle.com
Todd Ewing
Federal Title & Escrow Co
202-362-1500 todd@federaltitle.com
P
ROPERTY mANAGEmENT
William Hungerford
Allen & Rocks, Inc.
703-556-4000
Samuel Rocks
Allen & Rocks, Inc.
703-556-4000
David Schattenberg Comsource
Management, Inc.
301-916-7100 rschattenberg@comsource72.com
Hal Gearhart
Gearhart & Associates
301-869-8811 recenthal@erols.com
Geraldine Franklin
Holladay Corp
202-362-2400
Stephen Leubecker
The Lenkin Co
301-654-2100
Steven Buckman
Lotstein Buckman/Palisades
202-237-6000 buckman@lotsteinbuckman.com
Lelia Payne
Shift 4 Realty Management, Inc.
240-694-8174 lelialelia@msn.com
Frederick Scott
VanGuard Realty Group
301-547-1000 fscott@gfzrealty.com
Richard Stefanelli
Fenton Title Co
301-590-0220
Kathleen Asdorian
Foundation Title
301-652-6615 foundationtitle@hotmail.com
Stephen Ballard
Heritage Title & Escrow
202-265-0535 stephenmballard@yahoo.com
Kathleen Shank
Heritage Title & Escrow
202-265-0535
John Ferguson
Main Street Settlements, Inc.
301-570-3600
Jill Messier
MBH Settlement Group LLC
703-277-6800 jmessier@mbh.com
Stuart Orns
Monarch Title, Inc.
301-946-8800 stuart@monarchtitle.net
Erika Tucker
Monarch Title, Inc.
301-946-8800 erika@monarchtitle.net
Michael Bell
Montgomery Home Title, Inc.
301-622-6000 mbell@mhtinc.com
Craig Sacks
National Capital Title
301-948-2300 csacks@natcaptitle.com
Janelle Gaughan
North American Title Co
202-237-8222 jgaughan@sentineltitle.com
Lawrence Anderson
Olde Potowmack Title & Escrow
301-986-4880 landerson@optitle.com
Bobby Lee
Olde Potowmack Title & Escrow
301-986-4880 bobby@optitle.com
Justin Reiner
Olde Potowmack Title & Escrow
301-986-4880 justin@optitle.com
Marie Daugherty
Pinnacle Title & Escrow, Inc.
301-424-5400 mdaugherty@pinnacletitle.com
Jill Michaels
Pinnacle Title & Escrow, Inc.
301-424-5400 jmichaels@pinnacletitle.com
Jonathan Levy
Professionals Title & Escrow
301-670-0001 jlevy@titlepros.com
Kevin Shipe
Professionals Title & Escrow
301-670-0001 kshipe@titlepros.com
Ilene Kanfer
RAS Settlement & Title Co LLC
301-762-6757 mkanfer@ras-settlements.com
Mark Reges
Reges Real Estate Settlements
301-279-7722
John Mahoney
Regional Title
202-452-0700
Anthony DeVol
RGS Title
301-654-9800 tdevol@rgstitle.com
Anne LeSage
RGS Title
301-654-9800 alesage@rgstitle.com
Julie May
RGS Title
301-230-0070 jmay@rgstitle.com
Suzanne Cytryn
Settlement Pros, Inc.
301-907-8100 suzanne@settlementpros.com
P. Joy Siegel
Settlement Pros, Inc.
301-907-8100 joy@settlementpros.com
Lynn Caudle Boynton
Signature Settlement Services
301-840-8988 lboynton@signaturesettlements.net
Henry Clarke
Signature Settlement Services
301-840-8988 eoropiemd@msn.com
Stephanie Koren
Signature Settlement Services
301-840-8988 skoren@signaturesettlements.net
R. Bradley Runyan
Stewart Title Group
202-349-0220
David Kanstoroom
The Sentinel Title Corp
301-907-3980 dkanstoroom@sentineltitle.com
Debra Schroeder
Title Central Corporation
240-631-2200 dschroeder@diamondsettlement.com
Lauren Buchheister
Universal Title
301-468-2545 lbuchheister@universaltitle.net
James Griffin
Universal Title
301-468-2545 jgriffin@universaltitle.net
Andrew Reckson
Universal Title
301-421-1224 areckson@msn.com
Marty Stanton
Universal Title
301-421-1224 mstanton@universaltitle.net
Christopher Darby
Universal Title
202-223-7900 chrisdarby@universalsettlements.net
John Nalls
Universal Title
301-654-2560 jnalls@universaltitle.net
Colleen Smyth Cogan
Universal Title
301-670-0100 ccogan@universaltitle.net
Briana Ayala
Village Settlements, Inc.
301-590-9300 bayala@villagesettlements.com
Leslie Childs
Village Settlements, Inc.
301-590-9300 lchilds@villagesettlements.com
James Savitz
Village Settlements, Inc.
301-590-9300 jesavitz@villagesettlements.com t
Linda de Marlor
Tax-Masters, Inc.
301-230-0200 tax@tax-masters.com t
ERmITE/
PEST cONTROL
Thomas Grooms
Advanced Pest Control LLC
877-724-7241
Julio Gonzalez
Capitol Termite & Pest Control
301-657-4480 capitolpest@erols.com
Charles Moore
CW Termite & Pest Control LLC
301-549-4976
William Swearinger
CW Termite & Pest Control LLC
301-549-4976
Daphnee James
Daphnee’s Termite & Pest
301-953-7047
James Glazier
Infestation Control, Inc.
301-294-0800 jhgltg@aol.com t
ITLE
INSURANcE
Sara Demb
Capitol Title Insurance Agency
301-231-7250 sdemb@rv.capitoltitle.com
Stanley Goldstein
Capitol Title Insurance Agency
301-231-7250 sgoldstein@rv.capitoltitle.com
W
AX
AdvISORS
ARRANTIES
Marilyn Mitchell
2-10 Homebuyers Warranty
800-795-9595 mmitchell@2-10.com
Belinda Rankin
Home Warranty Plus by Sears
703-568-3154 branki3@sears.com

Capital Area REALTOR ® Serving the Business Needs of OUR Professionals september/october 2006
P ublic Policy
The bill still awaits Senate approval, but NAR is hopeful that it may win approval and become enacted within the year.
Zoning Text Amendment 06-22, Amendment to include Real estate office as a
FdiC Temporarily suspends iLC Applications
At the end of July, the Federal Deposit Insurance Corp., imposed a six-month
Permitted use in the C1 and C2 Zones moratorium on Industrial Loan Company (ILC) applications, protecting, for the time
Councilmember Praisner introduced this ZTA that proposes to include real estate offices being, the separation of banking and commerce. NAR has fought hard to keep banks as a permitted use in the C1 and C2 zones. C1 and C2 are commercial zones (like out of commerce, specifically real estate, by asking the FDIC to uphold long-standing strip malls) that according to Chapter 59 of the county’s zoning ordinance does not legislation by not approving Wal-Mart Corp. and Home Depot’s applications to operate permit real estate offices. However, there are many real estate offices currently in C1 and own a federally insured bank. The moratorium provides that the FDIC will not and C2 zones. Recently when a real estate company applied to open an office in a C1 issue any final decisions on the applications for the deposit insurance during the sixzone they were denied this request. Therefore, Councilmember Praisner has introduced month time frame ending on January 31, 2007. During that time, the FDIC will this legislation to allow real estate offices in these zones and clarify that in the zoning evaluate the need for clear-cut statutory, regulatory, or policy changes which NAR hopes ordinance. will narrow, or close completely, the loophole which allows businesses to own ILCs.
11
ZTA 06-17, Accessibility improvements – exemption
In July the County Council approved legislation that permits private property owners to make necessary improvements to their homes that will allow for accessibility features to be added to a home without burdensome zoning requirements. GCAAR strongly supported this legislation because the inventory of homes with accessibility options is currently very limited and dwindling every day. The ZTA will expand the housing options and choices that homebuyers with mobility impairments have to look at. It will also allow homeowners who might develop mobility impairments, the ability to stay in their current home and make improvements necessary to stay there. This in turn will create a greater housing stock with accessibility features and more housing choices for the disabled community. nAR Testifies before Congress on Competition in the Real estate market
In July, NAR President-Elect Pat Vredevoogd Combs testified before the House
Financial Services Subcommittee on the current state of competition in the real estate industry, which has come under fire recently from many in the media, as well as certain government officials. Vredevoogd Combs testified that real estate markets are essentially local markets and that competition within those local markets is currently fierce and healthy.
“Commissions, or the price for real estate services, are independently established by each firm or broker, as are the commission splits with the affiliated agents. Many agents are permitted to set their own commission rates and have the ability to negotiate what services to provide to their clients within prescribed limits set by their broker,” said
Vredevoogd Combs, in an effort to rebut those who have criticized the industry by oversimplifying conditions concerning the market.
House Passes FHA Reform
On July 25, the US House of Representatives voted overwhelmingly to approve changes to the Federal Housing Authority which would allow it to compete with the private sector when issuing home loans. The “Expanding American Homeownership Act of
2006” will relax limits put on the FHA which had kept it lagging behind in today’s marketplace. The changes include:
• increasing the FHA loan limits nationwide and especially in high cost areas;
• eliminating the 3% down payment requirement;
• eliminating the cap on reverse mortgages offered by FHA;
• streamlining the FHA condominium loan program;
• extending the loan term to 40 years;
• and allowing FHA to charge risk-based premiums to borrowers.
NAR reports that today consumers have access to a vast amount of information about the home buying and selling process. Even so, homebuyers and sellers still depend on real estate professionals for their information, experience, and expertise to assist them with the complex task of completing a real estate transaction. In the most recent NAR survey of homebuyers, 77 percent reported that they used the Internet to search for homes. The report also found that, of those homebuyers who use the Internet to search for a home, 93 percent of them still use a real estate agent. That data contradicts those who insist that REALTORS® employ efforts to quash competition from websites.
continued from page 1 energy and landscaping costs, as well as filter out pollutants, improving the air quality around your home.
According to English, another low-tech, high-yield tactic involves Xeriscaping, or using only native plants to reduce the need for watering, fertilizer, and pesticides, as well as to provide shading, temperature control, and to control the amount of natural light in a home. “Plants and trees are very important. They are always helpful to have on the property,” said English.
According to a recent survey conducted by Project Evergreen, a non-profit group which raises awareness about the benefits of environmentally friendly landscaping,
90% of homeowners believe that landscaping can improve their home value. But there’s more than simply a curb value appeal to a new landscaping approach. According to Den Gardner, executive director for Project Evergreen, “We don’t always connect the dots between the economic, environmental, and lifestyle benefits they provide.”
Gardner says it’s the simple things that can make a yard environmentally friendly, such as mowing and watering at the right times and adding nutrients to the soil. He also says that there is a misconception about the cost of green-friendly landscaping. Many big-box stores now offer the same high quality materials that professionals would use, so do-it-yourselfers can save money. “More and more consumers are making landscaping a part of their lifestyle,” said Gardner.
There are currently two sets of guidelines which exist to encourage homeowners to build green. The NAHB
Model Green Home Building Guidelines and the US
Green Building Council’s Leadership in Energy and Environmental Design (LEED) for Homes initiative. In addition, the Energy Policy Act of
2005 encourages energy efficiency by offering tax credits to those homeowners who build green.
But despite a growing number of forces working hard to get the message out, the idea behind going green is still often misunderstood.
One assumption associated with building green is that the house has to be built differently and made to look unique, setting it apart from nongreen homes. That simply is not the case said English.
“A green home can look just like the house next door.
It’s just built smarter.”
See GOING GREEN, page 13

12 september/october 2006 Serving the Business Needs of OUR Professionals Capital Area REALTOR ®
continued from page 6 ago, sales are down – usually by double digit amounts – in most price ranges. The only price ranges to show gains over 2005 to date have been units priced from $150,000 to
$200,000 and from $700,000 to $1,000,000. In comparison to earlier years, however, all price ranges over $300,000 have shown solid gains.
condoMInIuMS And cooPeRATIVeS
New contracts for condo and co-op units also slowed in July – down 6% from June, lower than any earlier month in 2006 except January and February, and 4% lower than
July of 2005. But in comparison to earlier years, they were 11% to 23% higher than the
July’s of 2002 – 2004.
There is currently a 4.6 month supply of condominium and cooperative units for sale.
This compares with a 2.9 month supply at the beginning of the year and 1.4 months a year ago. Active listings are 213% higher than at this same time in 2005 so great caution in pricing is critical in today’s sales market.
Year-to-date sales reflect much the same picture – down 14% from the same period of
2005, even with 2004 and ahead of 2002 – 2003 by 10% to 27%. Compared to a year
The average condo/co-op price is 4% lower at the end of July in comparison to all of
2005 and 2% lower than at this same time a year ago. Median prices are also down by almost the same amounts.
continued from page 6 a slowing economy, but recent personal consumption price indexes are showing inflation considerably above the 2% maximum the Fed indicates it will tolerate. My guess is that one more increase is in the cards, with a pause after the summer to see how the economy responds.
Recent real GDP growth for the second quarter slowed to 2.5%, down from a 5.6% rate in the first quarter. There’s no doubt the economy is slowing, but prices are also rising and prices are ultimately what the Fed is concerned about. To be safe, I would assume short term interest rates will still go up over the next month or so.
conSuMeR PRIceS And eneRGY coSTS
The May 2006 consumer price index for the Washington-Baltimore metropolitan area rose by 4.2% over the same period in the prior year. For all of 2005, metro area prices increased about 4%. This figure makes sense given the level of federal spending in the area, and it shows inflation is creeping up.
Based on the most recent national stats, the Consumer Price Index (CPI-U, seasonally adjusted) in June rose 0.2% from its May level – and was up 4.3% from June 2005.
Energy costs declined from the previous month; but on an annual basis, June energy prices were running about 23% higher. On the bright side, food was only 2.2% higher than last June, and medical care was up a stunningly reasonable 4.1%. Most importantly, the “core” rate (food and energy excluded) rose 2.6% -- higher than it has been in recent months, and significantly above 2%.
THe BoTToM lIne
So far, 2006 has been solid on home value appreciation, but sales are substantially weaker and eventually appreciation rates will move lower. While they are not likely to go negative for single-family homes any time soon, we could see some negative appreciation for condo/coops. Sales units will definitely be lower this year, as will be gross commissions. Interest rates will continue to rise for the near future, but the Fed will probably take a breather for a while.
In a slowing market, where there is lower price appreciation and fewer sales, your job requires a lot more negotiation work. Buyers are being picky, coming in with “low-ball” offers, and demanding more home “fix-ups” to do a deal. And, there are still sellers out there who believe that asking prices should be set by taking what they were a year ago plus some percentage mark-up based on last year’s market. Your job is to get them together, but first be realistic with your sellers about prices.
3
%
*
Townhomes Now Selling from the upper $300’s. Single Family Homes Now Selling from the $500’s.
At Greentree Homes, our broker compensation is as great as it has always been—a full 3% on the total sales
price, including options.* Rest assured, this isn’t a limited time opportunity. It’s what you can expect every time you bring a client to Tuscarora Creek, Frederick’s most exciting new planned community featuring single family homes, townhomes, a planned recreation facility, pool, childcare, ball fields and more. Visit today.
From Washington or Baltimore, take Rte. 15 N. to L. on Hayward Rd. to R. on Opossumtown Pike. Follow
Opossumtown Pike 1/4 mi. to L. on Poole Jones Rd. Follow Poole Jones Rd. which becomes Walter Martz Rd.
Continue Straight for approx. 1/2 mi. to Sales Center on R. For complete information, please call 301-620-9455.
Open Daily 11-6.
www.buygreentreehomes.com
*Commissions based on full sales price including options. See Community Sales Consultant for complete details. Subject to change without notice.
MHBR#848

Capital Area REALTOR ® Serving the Business Needs of OUR Professionals september/october 2006 13
continued from page 1
1. Let the local police know when and where you are hosting an open house. Ask them to have a squad car drive by at least once during the open house.
SAFeTY WITH PRoMoTIonAl MATeRIAlS
Consider these tips in preparing or updating the information you use to get business:
• All of your marketing materials should be polished and professional. Don’t use
“glamour shot” photography or other personal enticements in advertising, on the
Web or on your business cards. There are many documented cases of criminals actually circling photographs of their would-be victims in newspaper advertisements. These victims were targeted because of their appearance in the photograph.
2. Inform a close neighbor that you will be hosting the open house, and ask if he or she would keep an eye and ear open for anything out of the ordinary.
3. When you first enter an empty home, check each room and determine several escape routes. Make sure all deadbolt locks are unlocked to facilitate a faster escape.
(Remember to lock up again when you leave!)
4. Once you enter, turn on the lights, and open the curtains. These are not only good safety habits, but can also help you sell the place.
• Limit the amount of personal information you share. Don’t use your full name with middle name or initial. Use your office address rather than your home address—or list no address at all. Giving out too much of the wrong information can make you a target.
• be careful how much personal information you give verbally as well. know your client” does not mean sharing personal information about your children, where you live, and who you live with.
“Getting to
5. Scope out the backyard and make sure that if you had to escape by the back door, you could get out of the yard. Check any gates.
6. Place one of your business cards, with the date and time written on the back, in a kitchen cabinet. Note on it if you were the first to arrive or if clients were waiting.
• make phone numbers hard to trace. Rather than use your personal cell phone or home phone number—which can be typed into some Web sites to find your home address—consider using a toll-free number. This can’t be traced and prospects may appreciate the free call. You can have calls to this number automatically forwarded to any phone.
• Concentrate on your professional proficiency in newspapers, resumes, and business cards.
rather than personal information
7. When prospects begin to arrive, jot down their car descriptions, license numbers, and physical descriptions.
8. When you show a home, always let the prospect walk ahead of you. Direct them; don’t lead them. Say, for example, “The kitchen is on your left,” and gesture for them to go ahead of you.
9. Notify someone in your office, your answering service, a friend, or a relative that you will be calling in every hour on the hour. And if you don’t call, they are to notify the police immediately.
• All agents in your office should use only their first initial and last name
“For Sale” signs to conceal gender and prevent anyone other than a personal acquaintance or current client asking for you by name.
on their
10. Don’t assume that everyone has left the home at the end of your open house. Check each room and closet and the backyard prior to locking the doors. Check any windows or sliding doors to make sure they are still locked. Be prepared to defend yourself, if necessary.
10 SAFeTY TIPS FoR HoSTInG An oPen HouSe
Open houses are regular events for REALTORS®, but they expose you to potentially dangerous situations. Take these simple steps to help ensure your personal safety during these events.
And as always, never hesitate to dial 911 when in an emergency.
Source: NATIONAL ASSOCIATION OF REALTORS’® 2006 REALTOR®
Safety Week Kit.
For more information or to access more safety tips or promotional materials, please visit, www.
realtor.org/about_nar/safety_week/index.html.
A home doesn’t need drastic changes to be a little greener. With these simple strategies, homeowners can become more environmentally conscious, while also saving on energy and maintenance costs.
CsL Light bulbsCreative Lighting System (CSL) bulbs can last up to ten times longer than traditional light bulbs while also helping you conserve energy.
update Appliances- The energy efficiency of refrigerators and freezers has tripled over the past 30 years. Front-loading washers use about 40% of the water and only half of the energy of traditional models. The newer the appliance, the more likely it is to use energy efficiently. And new appliances can draw the attention of potential buyers as well.
Tree and Plant Preservation- Not only do trees and other large plants near a home provide shading to help energy costs (tree shading homes can reduce attic temps as much as 40 degrees), but plants can filter up to 60 lbs. of pollutants from the air each year.
*Source: Project evergreen
Covered entries- Simply covering a walkway with a small eave or roof can prevent water intrusion, which reduces maintenance and enhances durability.
Change the Faucets- By updating to efficient shower and sink faucet aerators, you can help to save water and heating costs, all without reducing the quality or pressure of the faucets.
For more tips on going green, visit www.nahb.org.

14 september/october 2006
2 0 0 6
GoLden R
$5,000 or more
Carole Maclure, ABRM CRB, Long & Foster Real Estate, Inc.
Jack Queen, Long & Foster Real Estate, Inc
Dale Ross, CRB, Pioneer Realty Inc.
Greater Capital Area Association of REALTORS
Long & Foster Real Estate, Inc.
Crystal ‘R’ RPAC Contributors
$2,500 or more
Dorothy Heymann, Fairfax Realty, Inc.
Dale Mattison, CRS GRI, Long & Foster Real Estate, Inc.
sterling ‘R’ RPAC Contributors
$1,000 or more
Elizabeth Blakeslee, GRI, Coldwell Banker Residential Brokerage
Ruth Dickie, CIPS, GRI, Long & Foster Real Estate, Inc
Liz Brent, Evers & Co Real Estate Inc.
Chuck Ebert, CAE, RCE, GCAAR
Jay Feldman, ABR CBR CRB CRS GRI,
Coldwell Banker Residential Brokerage
Marc Fleisher, Long & Foster Real Estate, Inc.
Susann Haskins, ABR, CBR, CRS, GRI,
Long & Foster Real Estate, Inc.
Joseph Himali, CRS GRI, Best Address Real Estate LLC
Harold Huggins, CCIM, CPM, CRB, CRS, GRI,
Harold Huggins Realty Inc.
Adrian Hunnings, GRI, W.C. & A.N. Miller REALTORS®
Christopher Jeffries, Long & Foster Real Estate Inc.
James K. Kneussl, Jr., CBR GRI SRES, Weichert REALTORS®
Alana Lasover, Coldwell Banker Residential Brokerage
Jill Pogach Michaels, Pinnacle Title & Escrow, Inc.
Barbara Miles, CBR, CRS, GRI, Coldwell Banker Residential
Michael Moran, GCAAR
Shelly Murray, Weichert REALTORS®
Ned Rich, GRI, Long & Foster Real Estate Inc.
Peter Rucci, CRB, Long & Foster Real Estate, Inc.
Holly Worthington, CRB CRS GRI,
Long & Foster Real Estate Inc.
Capital Club
$250-$999
Mary Bajwa, SRES, Long & Foster Real Estate, Inc.
Sandra Bowser, GRI, Weichert REALTORS®
Barbara Casper, Jr., Long & Foster Real Estate, Inc.
Mark Drummond, GRI, Habitat Real Estate, Inc.
Anne Errigo, Long & Foster Real Estate, Inc.
Dennis Melby, Long & Foster Real Estate, Inc.
Sidney Menkis, GRI, Menkis Real Estate
Betty Pair, CBR CRB, Tutt Taylor and Rankin Real Estate LLC
Betty Pelzer-Sharper, ABR GRI, RE/MAX Realty Services
Kevin Reid Shirley, Long & Foster Real Estate, Inc.
Brenda Small, CBR GRI, Prudential Carruthers REALTORS®
Nancy Sturgill, CRS GRI, Weichert REALTORS®
Glen Sutcliffe, CRS, GRI, Long & Foster Real Estate, Inc.
Jacqui Taylor, GRI, Long & Foster Real Estate, Inc.
Patrick Weed, CBR CRS SIOR, Patrick Realty Company Inc.
Phyllis Wiesenfelder, CRB, Long & Foster Real Estate, Inc.
Jearline Williams, Randall H Hagner & Co.
“dollar-A-day” Contributors
$365
Sara Lou Cardwell, CBR, CRS, SRES,
Long & Foster Real Estate, Inc.
Anita Centofanti, Long & Foster Real Estate, Inc.
Sonia Foronda, Fairfax Realty, Inc.
Lenn Harley, Homefinders.Com
Roberta Kimball, Long & Foster Real Estate, Inc.
Gregory Joseph, CRB, GRI, Long & Foster Real Estate, Inc.
Joseph Rubin, Long & Foster Real Estate, Inc.
* GCAAR records as of September 7, 2006.
Serving the Business Needs of OUR Professionals Capital Area REALTOR ®
The new Regional Sales Contract went into effect September 1. GCAAR has scheduled free education forums for members to become familiar with changes in the new contract.
General Forum: october 18th, 2006, 1:30 - 3:30 pm
Silver Spring Location: 8757 Georgia Ave, Suite 600
Classes are free to all GCAAR members. No CE will be given.
Visit the REALTOR® Store from gcaar.com to register and check for additional class offerings.
B
B
Capital Area Real Estate Summit
Watch for more details via e-mail and in the November/December issue of Capital Area Realtor® reaLtor.orG qUIz AnSwERS
1. True- True, but your actions are extremely risky. An offer to conspire on uniform competitive practices, followed by conduct consistent with the acceptance of that offer, is sufficient to violate antitrust laws and can be sufficient evidence to persuade a judge or jury that you participated in the conspiracy, even if you did not. Since you didn’t agree to the conspiracy you are, technically, not a part of it. But since your actions are consistent with the agreement, a judge or jury still may conclude that you are a party to the agreement. The best way to avoid participation in an illegal conspiracy is to openly reject and repudiate any offer to conspire and to be sure that your subsequent conduct does not reflect participation.
2. True- A broker may require salespeople working as independent contractors to abide by the company’s commission rate without violating any antitrust laws. An illegal price fixing agreement must be among different “economic actors,” that is, parties who have their own economic interests and are not associated with the same company.
3. False- It doesn’t matter why competitors agree to engage in a
“group boycott” of a particular company, it’s an illegal boycott nevertheless. Competitors may choose to not cooperate with another company that they consider to be unethical — or for any reason whatsoever (but subject to their fiduciary and fairness duties to clients and customers) — as long as they do so acting on their own, unilaterally. If they choose to not cooperate with another company in agreement with other firms, they violate the antitrust laws.
4. False- Stating that MLS members have an “informal understanding” about properties with exclusive-right-to-sell agreements could be understood by the seller to mean that there is an informal agreement — which would be an illegal conspiracy. An “informal understanding” is just as illegal as a written agreement that all parties sign. Participants in an antitrust conspiracy almost never put their agreement in writing, but that merely makes the existence of the agreement, and the parties to it, a bit harder to prove. It is an unlawful agreement nevertheless.
5. False- A company may offer any other company any commission split it chooses, as long as it determines to do so on its own and advises the other company privately and in advance, such as by sending a letter to that company. A commission split that differs from what is offered in the MLS to all companies generally may be referred to as a “punitive split.” However, as long as these commission splits are determined and offered unilaterally and not in agreement with other firms, antitrust laws do not prohibit them. This is true even if a number of companies decide to offer a certain company the same split that it offers to them, with the result that they all offer the same split to that company. As long as each company can demonstrate that it determined to offer a different split unilaterally and without discussion or agreement with other firms, it is not illegal under the antitrust laws.
6. False- The prohibition on price fixing forbids agreements among competitors on prices, such as real estate listing commission rates, including commission splits. The law does not preclude a competitor who establishes its commission rate unilaterally and without agreement with other companies from advertising that commission rate. The law also allows that competitor to engage in competitive advertising, in which the company explicitly compares its stated commission rate to the rates publicly promoted or advertised by other firms, provided that the advertising was truthful and not misleading. In fact, the policy underlying antitrust laws — promotion of vigorous and healthy competition — would tend to favor and encourage such comparative advertising since it helps consumers easily compare and contrast prices offered by various companies.
7. False- This is a classic example of a group boycott — an agreement among competitors not to do business with a particular third party. This group boycott has the anticompetitive effect of eliminating the opportunity for companies to try to attract clients and customers by advertising in the newspaper. The very fact that no company is willing to stop advertising unless all others agree to do so illustrates this anticompetitive effect;
The firms are unwilling to lose the “competitive advantage” of advertising unless others agree to do the same. The fact that the agreement may have some beneficial effects for consumers — even if true — will not save this agreement from being unlawful.
8. True- Just as ignorance of the law is no excuse, brokers’ ignorance of their salespeople’s conduct is no defense to an antitrust charge. A brokerage company will be held liable for the conduct of its salespeople whether or not the principal broker was personally aware of their conduct. To safeguard against antitrust violations, brokerages should adopt a written antitrust compliance program, distribute it to every employee and independent contractor, and review it with everyone twice a year.

Capital Area REALTOR ® Serving the Business Needs of OUR Professionals september/october 2006 15
.orG
Do you know the ins and outs of antitrust laws? If not, you should, because real estate brokers and salespeople frequently cooperate with one another in the sale of properties. They have numerous market place.
Q with them in setting a “standard” commission for the area. I refused, but subsequently started charging the same rate that my competitors suggested. Because I didn’t overtly agree to participate in price fixing, I am not part of a conspiracy.
True or False
5. My company benefits from MLS participation, but we don’t want to pay a cooperative commission split to real estate companies that offer only nominal compensation on their listings, which we think they include simply so that their listings are shown on REALTOR.com and other public real estate web sites. But if we decide to offer them the same amount of compensation that they offer us, we’ll be breaking the law.
True or False
6. Antitrust price fixing rules do not allow a real estate company to engage in a public advertising campaign that highlights the commission rate it charges to consumers.
True or False
2. Even though my salespeople are independent contractors, I may establish the commission rate for my company and require salespeople to charge that rate.
True or False
3. Brokers who agree not to cooperate with another company, such as by not showing that company’s listings, do not violate antitrust laws if they enter into that agreement because they consider the company’s aggressive “high-tech” marketing techniques to be unethical.
True or False
7. Classified and display advertising rates in a local newspaper have increased substantially, which hurts all the real estate companies in town. Yet, no company is willing to stop advertising for fear of losing clients and customers to their complies.
True or False
A
8. If one of my salespeople participates in a price fixing discussion, my company can be held liable — even if I have no personal knowledge of the salesperson’s conduct.
True or False
4. The best way to persuade sellers that they should enter into an exclusive-right-to-sell agreement with you is to tell them that MLS members have an “informal understanding” to show buyers exclusive-right-to-sell listings first.
True or False anSWeRS on PaGe 14.
S C O R I N G
0-6 7-8
Reprinted from realtor.org, REALTOR Magazine Online © Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®

Serving the Business Needs of OUR Professionals 16 september/october 2006
Capital Area REALTOR ®
MRIS-AA.Happy.CAR.indd 1
Your partner on the Web • To learn more, visit us at www.mris.com
2/26/06 11:13:15 PM