As a Principal Broker, I regularly monitor state and local disciplinary proceeding to keep abreast of any trends or emerging  real estate  practice  areas that  are problems I should be aware of for my own company. Fortunately, my local Association (NVAR) has fairly reasonable folks serving on grievance and disciplinary panels. Unfortunately, that's not true in all jurisdictions.

The North Central Board of Realtors (Association) went out of it's way to either make an absurd example or to excessively punish one of their own for an offense that, by their own procedures, merited a much smaller consequence. The Realtor involved had violated some rules the year before and was fined and given a year's probation. Her Broker was fined also for lack of supervision.

Less than a year later, charges of rules violations were again made against this same Realtor. This time, she was alleged to have improperly input two listings into the Association’s multiple listing service (“MLS”) without the seller’s permission. According to the Realtor, the information was input by mistake by an office employee on Thursday and Friday, and the listings were removed on the following Monday after the mistake was discovered.

The Association conducted a hearing into the new allegations and the hearing panel found the Realtor guilty of violating the Association’s rules. She was fined $1500 and suspended 45 days from the MLS. This Realtor was also expelled from the Association and fined $5,000. Further, her expulsion had the effect of not allowing any other member of the brokerage to access the MLS until either the Association reinstated her membership or she left the brokerage.

After the Association upheld the hearing panel’s decision, the Realtor filed a lawsuit against the Association, alleging a denial of due process in the hearing conducted by the Association.

The trial court ruled in the Association's favor. Reason prevailed on appeal. The Court of Appeals of the State of Mississippi reversed the trial court. Looking at existing Mississippi law, the court found that while private organizations are generally free to discipline members who violate prescribed rules of conduct, private organizations must also describe possible punishments which can be imposed for various rules violations, in order to alert the member as to the possible punishments when he/she joins the organization and also avoid arbitrary disciplinary actions by the organization against its members.

The court ruled that the Association had not followed its own rules in disciplining the Realtor and so had acted arbitrarily, causing the court to vacate the discipline imposed on the Realtor by the Association. The Association’s rules require that the seller’s signature be obtained before a listing can go into the MLS. Since she had not obtained the seller’s signature for the listing that she submitted to the MLS, she was subject to the discipline contained in the Association’s rules. While the court found some conflict in the Association’s rules and procedures, the main focus of the Realtor's challenge was Sections 7 and 9 of the Association’s rules.

Section 7 set forth a potential disciplinary path for repeat offenders. Section 7 states that a warning is appropriate discipline for a first offense, and a second offense warrants a fine as well as an appearance by the participant before the MLS Committee. A third offense can result in a $100 fine and 60-day suspension; a fourth offense in a four month period should result in a 60-day suspension....

I am grateful that the Realtor had the tenacity and resources to challenge the egregious treatment by her Association. I hope this ruling will cause other association disciplinary panels to more equitably consider their rulings and responses to Realtor mistakes. Yes, this Realtor made some mistakes and is responsible and accountable for her actions, but there needs to be fairness in applying remedies to acts of real estate that do not conform to published standards.

• What's your take?
  
• If you serve on a disciplinary panel, what else might you have proposed?
  
• Is this a more widespread problem with the skills and attitudes of people who serve on grievance and disciplinary panels?
  
• Rather than who chooses to volunteer, should there be more measured criteria for people who serve on these very important panels?
• Should standards be developed to assess Realtor performance on disciplinary panels that must be reviewed prior to being reappointed for successive terms?

Sorry for the long post, but this is important and affects all of us.

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

(703) 538-2566

davidrose@mris.com

www.HighlandAgents.com

Well, we went and done did it! After 6 months of classes and another 6 months of planning, biting nails and snapping at anyone who dared walk by, we planned, produced and taped our first two television shows. They are now in edit and, like an expectant father; I am having difficulty waiting for the final results, an airing of our first two segments – “Living and Enjoying Life in Northern VA”. These shows will air beginning in mid-July on Channel 30, the Fairfax, VA foreign language public access channel.

If you recall, many blogs back, I decided to participate in the growing housing market for Spanish-speaking individuals and families. So I did what any hungry broker would do, I hired four Spanish-speaking Realtors. I also decided at that time to move in a new direction for us and have a television show that addressed issues and information for the Spanish-speaking community in Northern VA.

If you have your own show or are in the midst of planning one, what ere some of the hurdles you had to overcome to get on the air?

Whether or not you have a show currently, what community or real estate topics would you suggest? There is a lot of information to share about getting to this point and, I will do just that in future blogs.

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

(703) 538-2566

davidrose@mris.com

www.HighlandAgents.com

by Janis Wilson

A mother sat there with her little child. She was so downcast, so afraid that it should die! It was so pale, the small eyes had closed themselves, and it drew its breath so softly, now and then, with a deep respiration, as if it sighed; and the mother looked still more sorrowfully on the little creature.

Then a knocking was heard at the door, and in came a poor old man wrapped up as in a large horse-cloth, for it warms one, and he needed it, as it was the cold winter season! Everything out-of doors was covered with ice and snow, and the wind blew so that it cut the face.

As the old man trembled with cold, and the little child slept a moment, the mother went and poured some ale into a pot and set it on the stove, that it might be warm for him; the old man sat and rocked the cradle, and the mother sat down on a chair close by him, and looked at her little sick child that drew its breath so deep, and raised its little hand.

"Do you not think that I shall save him?" said she. "Our Lord will not take him from me!"

And the old man--it was Death himself--he nodded so strangely, it could just as well signify yes as no. And the mother looked down in her lap, and the tears ran down over her cheeks; her head became so heavy--she had not closed her eyes for three days and nights; and now she slept, but only for a minute, when she started up and trembled with cold.

"What is that?" said she, and looked on all sides; but the old man was gone, and her little child was gone--he had taken it with him; and the old clock in the corner burred, and burred, the great leaden weight ran down to the floor, bump! and then the clock also stood still.

But the poor mother ran out of the house and cried aloud for her child.

Out there, in the midst of the snow, there sat a woman in long, black clothes; and she said, "Death has been in thy chamber, and I saw him hasten away with thy little child; he goes faster than the wind, and he never brings back what he takes!"

"Oh, only tell me which way he went!" said the mother. "Tell me the way, and I shall find him!"

"I know it!" said the woman in the black clothes. "But before I tell it, thou must first sing for me all the songs thou hast sung for thy child! I am fond of them. I have heard them before; I am Night; I saw thy tears whilst thou sang'st them!"

"I will sing them all, all!" said the mother. "But do not stop me now--I may overtake him--I may find my child!"

But Night stood still and mute. Then the mother wrung her hands, sang and wept, and there were many songs, but yet many more tears; and then Night said, "Go to the right, into the dark pine forest; thither I saw Death take his way with thy little child!"

The roads crossed each other in the depths of the forest, and she no longer knew whither she should go! then there stood a thorn-bush; there was neither leaf nor flower on it, it was also in the cold winter season, and ice-flakes hung on the branches.

"Hast thou not seen Death go past with my little child?" said the mother.

"Yes," said the thorn-bush; "but I will not tell thee which way he took, unless thou wilt first warm me up at thy heart. I am freezing to death; I shall become a lump of ice!"

And she pressed the thorn-bush to her breast, so firmly, that it might be thoroughly warmed, and the thorns went right into her flesh, and her blood flowed in large drops, but the thornbush shot forth fresh green leaves, and there came flowers on it in the cold winter night, the heart of the afflicted mother was so warm; and the thorn-bush told her the way she should go.

She then came to a large lake, where there was neither ship nor boat. The lake was not frozen sufficiently to bear her; neither was it open, nor low enough that she could wade through it; and across it she must go if she would find her child! Then she lay down to drink up the lake, and that was an impossibility for a human being, but the afflicted mother thought that a miracle might happen nevertheless.

"Oh, what would I not give to come to my child!" said the weeping mother; and she wept still more, and her eyes sunk down in the depths of the waters, and became two precious pearls; but the water bore her up, as if she sat in a swing, and she flew in the rocking waves to the shore on the opposite side, where there stood a mile-broad, strange house, one knew not if it were a mountain with forests and caverns, or if it were built up; but the poor mother could not see it; she had wept her eyes out.

"Where shall I find Death, who took away my little child?" said she.

"He has not come here yet!" said the old grave woman, who was appointed to look after Death's great greenhouse! "How have you been able to find the way hither? And who has helped you?"

"Our Lord has helped me," said she. "He is merciful, and you will also be so! Where shall I find my little child?"

"Nay, I know not," said the woman, "and you cannot see! Many flowers and trees have withered this night; Death will soon come and plant them over again! You certainly know that every person has his or her life's tree or flower, just as everyone happens to be settled; they look like other plants, but they have pulsations of the heart. Children's hearts can also beat; go after yours, perhaps you may know your child's; but what will you give me if I tell you what you shall do more?"

"I have nothing to give," said the afflicted mother, "but I will go to the world's end for you!"

"Nay, I have nothing to do there!" said the woman. "But you can give me your long black hair; you know yourself that it is fine, and that I like! You shall have my white hair instead, and that's always something!"

"Do you demand nothing else?" said she. "That I will gladly give you!" And she gave her her fine black hair, and got the old woman's snow-white hair instead.

So they went into Death's great greenhouse, where flowers and trees grew strangely into one another. There stood fine hyacinths under glass bells, and there stood strong-stemmed peonies; there grew water plants, some so fresh, others half sick, the water-snakes lay down on them, and black crabs pinched their stalks. There stood beautiful palm-trees, oaks, and plantains; there stood parsley and flowering thyme: every tree and every flower had its name; each of them was a human life, the human frame still lived--one in China, and another in Greenland--round about in the world. There were large trees in small pots, so that they stood so stunted in growth, and ready to burst the pots; in other places, there was a little dull flower in rich mould, with moss round about it, and it was so petted and nursed. But the distressed mother bent down over all the smallest plants, and heard within them how the human heart beat; and amongst millions she knew her child's.

"There it is!" cried she, and stretched her hands out over a little blue crocus, that hung quite sickly on one side.

"Don't touch the flower!" said the old woman. "But place yourself here, and when Death comes--I expect him every moment--do not let him pluck the flower up, but threaten him that you will do the same with the others. Then he will be afraid! He is responsible for them to our Lord, and no one dares to pluck them up before he gives leave."

All at once an icy cold rushed through the great hall, and the blind mother could feel that it was Death that came.

"How hast thou been able to find thy way hither?" he asked. "How couldst thou come quicker than I?"

"I am a mother," said she.

And Death stretched out his long hand towards the fine little flower, but she held her hands fast around his, so tight, and yet afraid that she should touch one of the leaves. Then Death blew on her hands, and she felt that it was colder than the cold wind, and her hands fell down powerless.

"Thou canst not do anything against me!" said Death.

"But our Lord can!" said she.

"I only do His bidding!" said Death. "I am His gardener, I take all His flowers and trees, and plant them out in the great garden of Paradise, in the unknown land; but how they grow there, and how it is there I dare not tell thee."

"Give me back my child!" said the mother, and she wept and prayed. At once she seized hold of two beautiful flowers close by, with each hand, and cried out to Death, "I will tear all thy flowers off, for I am in despair."

"Touch them not!" said Death. "Thou say'st that thou art so unhappy, and now thou wilt make another mother equally unhappy."

"Another mother!" said the poor woman, and directly let go her hold of both the flowers.

"There, thou hast thine eyes," said Death; "I fished them up from the lake, they shone so bright; I knew not they were thine. Take them again, they are now brighter than before; now look down into the deep well close by; I shall tell thee the names of the two flowers thou wouldst have torn up, and thou wilt see their whole future life--their whole human existence: and see what thou wast about to disturb and destroy."

And she looked down into the well; and it was a happiness to see how the one became a blessing to the world, to see how much happiness and joy were felt everywhere. And she saw the other's life, and it was sorrow and distress, horror, and wretchedness.

"Both of them are God's will!" said Death.

"Which of them is Misfortune's flower and which is that of Happiness?" asked she.

"That I will not tell thee," said Death; "but this thou shalt know from me, that the one flower was thy own child! it was thy child's fate thou saw'st--thy own child's future life!"

Then the mother screamed with terror, "Which of them was my child? Tell it me! Save the innocent! Save my child from all that misery! Rather take it away! Take it into God's kingdom! Forget my tears, forget my prayers, and all that I have done!"

"I do not understand thee!" said Death. "Wilt thou have thy child again, or shall I go with it there, where thou dost not know!"

Then the mother wrung her hands, fell on her knees, and prayed to our Lord: "Oh, hear me not when I pray against Thy will, which is the best! hear me not! hear me not!"

And she bowed her head down in her lap, and Death took her child and went with it into the unknown land.

In respect and appreciation of Mother’s everywhere…..

Would you like to be a hero to your prospects, clients and friends? Pass along this link!

This is pretty nifty. Just enter your  zip code in the site below, and it tells you which gas stations have the cheapest prices (and the highest) on gas    in your zip code area.  It's updated every evening.
 
 http://autos.msn.com/everyday/gasstations.aspx?zip=&src=Netx

 
 
Be a good neighbor and pass this along

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

(703) 538-2566

davidrose@mris.com

www.HighlandAgents.com

In doing the business of real estate, we often reach decision points as to when certain types of information or issues will need to be disclosed. Early in my career, my then Broker, Ben Zurun said, “When you least want to say something to your buyer or seller about something that may dramatically affect the transaction, that’s when you need to clearly and considerately say it”. I can’t tell how many times that advice has kept me from being sued, saved deals, and guided me in maintaining my professional integrity.

If you were sitting with a rookie agent and could only offer one piece of advice to have the “best” career possible in real estate, what would that be?

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

davidrose@mris.com

www.HighlandAgents.com

Over the years, I have found the quantity and quality of calls requesting feedback to wax and wane inversely with the level of activity in the market. From 2000 to 2005, I could count on one hand the number of requests for feedback calls I received per month. Now, I’m getting called before I get my seatbelt fastened to move on to the next property.

Do you make or respond to requests for feedback on listings? What do you consider effective strategies in seeking feedback? Do you return calls asking for feedback? What situations really annoy you?

Some of my pet peeves:

• If you want my insights, call me directly; no assistants, automated queries or emails;
• Don’t wait a week after I have been through and expect me to remember lots of details;
• If you want my opinion on price, don’t be insulted when you receive it;
• Don’t argue with me about adjectives I use to describe the dump you called “a diamond in the rough”;
• Don’t keep me on the line for 15 to 20 minutes hoping to find ammunition to lower the price;
• Be professional and polite.

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

davidrose@mris.com

www.HighlandAgents.com

If you are a Office Broker, manager or team leader and you have foreign born (English as a 2^nd language) agents working short sales or foreclosures, I hope you are working with them carefully as the nightmare addendums and paperwork comes through the office.

I consider myself fortunate to have several really capable native Spanish and Vietnamese Realtors working with me, who are quite fluent with English, but are no match for the addendum language being generated by foreclosing and short-sale lenders of record who are “sort of” trying to divest themselves of a growing and unwanted inventory of properties. I say “sort of” because I have difficulty believing they actually expect people to totally surrender any and all purchaser rights in the transaction. I also understand the concept of “as is”, but if you don’t read every line, every word of the addendum, you and your agent could be setting the purchaser up for a financial disaster. 

This is problem enough for educated American-born agents, but, from what I have experienced, it is a serious problem for those 2^nd-language folks who do not understand 20% of the terms used and 50% of the implication of the twisted terms and conditions proposed in the counteroffer.

For example: 

One of my Spanish-speaking agents submitted a 25-page offer for contract on a property being advertised as a short-sale. A week after the offer was submitted, she received a 26-page addendum full of legalese in counter to the offer presented. Essentially, it minimized or eliminated any remaining purchaser rights after he agreed to buy the property “as is”.  One section of the addendum addressed homeowner association documents. It specified that the seller would not provide them and that the Purchaser had 11 days to remove the contingency or forfeit the right to review. In Virginia, the HOA’s have up to 14 days, by statute, to prepare and deliver the documents. Hmmm. Something didn't add up here.

On behalf of my selling agent, I contacted the listing agent and asked how they planned to compel the HOA to prepare the documents and provide the purchaser with the Virginia State mandated three-day period of review to accept or decline the documents. After a long pause, he said, I guess we could write in an amendment to extend the timeframe…. After paying $312, the Purchaser received the documents - one day before closing (There was another provision that the seller could require closing immediately following loan approval). Two of the several reasons you want to see HOA documents relate to dues not paid and architectural committee inspection results. Both convey with the property if not caught by the new lender or remedied by the current owner.

We found out that there was a $2,200 dues arrearage and $1,500 worth the exterior maintenance to be completed. Before closing, we required a seller credit for same.

This is just one hideous example of what is happening to buyers in short sales. I almost forgot to mention: there was another provision that stated that the seller could terminate the contract at any point prior to closing without cause (like if they receive a better offer). The purchaser would have no recourse and waived all rights to sue for performance or recover fees and expenses paid to date. The only recognition would be to refund the purchaser’s earnest money deposit. No reimbursement for any inspections, appraisal. survey and other related fees.

Many of these deals are really complicated. I would urge you to work closely and carefully with all of your agents, not just the ones who know another language better than they know English.

Are my agents just picking the wrong properties or are any of you having similar difficulties?  Where do you draw the line in giving up purchaser contract rights? Any success stories or other examples we need to watch out for?

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA  22202

davidrose@mris.com

www.HighlandAgents.com

With many areas around the country still experiencing property values in a downward direction, a new problem is emerging: who gets the mortgage when a couple is divorcing? A must-read article appeared in today's Washington Post discussing this growing problem with not a lot of solutions in sight. It's actually causing some couples to re-think their divorce plans! What many others are finding is that with values going down and rates going up, where two had qualified before, the remaining soon-to-be-ex-spouse is not able to qualify to carry the note alone. Most mortgage companies are refusing to remove or release liability for the departing spouse, putting the mortgage payment continuity at risk plus it's always better to have two incomes to go after if there is a resulting deficiency judgment.

So, who gets the mortgage? It depends mainly on the remaining spouse's ability to qualify to refinance the other party off the note, the current property value and the equity position to sustain the refinance. What experiences have you had in working with divorcing couples? What went well and what problems could not be overcome?

Dave Rosenmarkle

Broker Owner

Highland Realty

(703) 538-2566

davidrose@mris.com

www.HighlandAgents.com

I think the "best" way may depend on who you are representing in the transaction. I had a very good agent approach me today with a combination form he was thinking about using for one of his listings. If he had been representing the tenant/prospective buyer, I might have encouraged him to use it.

Over the last 10 years in a range of different markets, I have seen law suits periodically arise over lease-with option-to-purchase contracts, usually over money, price and equity. Many of the suits are a direct result of well-intentioned, but sloppy writing by Realtors and/or attorneys.

In brief, if I were a listing agent receiving an offer of a lease with-option-to-purchase contract, I would counter with two separate documents: a lease for the agreed upon period of time and a sales contract, to be executed whenever the tenant's financing is approved and ready to close.  You can also spell out credits and other terms mutually agreed to, but the tenant must successfully perform on the lease, then purchase the property.

If I were the leasing agent, I would probably try for the combined document approach and try to lock the seller into as favorable terms as possible. Although, I might not want to lock the price in if the market is still projected to decline. If this were 2000-2005 and I asked the seller to lock the price for 12 or 18 months, he would probably hand me some windex to clean my third eye as he wondered which planet I was from. If the seller agreed to execute an agreement giving my client the option tp purchase, I would also have my attorney record the option in the county land records.

It may be different in other parts of the country, but it is rare for a lease-purchase contract to actually  close in the Northern VA market. 

How do you handle lease-with-option-to-purchase in your market area? Does it happen often?  

Dave Rosenmarkle

Broker Owner

Highland Realty

(703)538-2566

davidrose@mris.com

www.HighlandAgents.com

Friends -

All across America, we gather in our homes this week with the people we love to give thanks for the blessings in our lives. We are grateful for our freedom, grateful for our families and friends, and grateful for the many gifts of America.

Thanksgiving is also a time to share our blessings with those who are less fortunate. Americans this week will gather food and clothing for neighbors in need. Many young people will give part of their holiday to volunteer at homeless shelters and food pantries. On Thanksgiving, we remember that the true strength of America lies in the hearts and souls of the American people. By seeking out those who are hurting and by lending a hand, Americans touch the lives of their fellow citizens and help make our Nation and the world a better place.

From our home to yours – have a happy, safe and friend-filled Thanksgiving holiday.

Dave

Not what we say about our blessings, but how we use them, is the true measure of our thanksgiving.
- W.T. Purkiser

And for those who can't be home this Thanksgiving, we give thanks for your dedication and service to our country. Stay safe and come home soon.