legal education - Wisconsin REALTORS® Association

Transcription

Legal
Are you required to share buyer
feedback on properties?
Education
Look who’s coming to the
WRA Convention.
September 2007
$5.00
Building Customer Loyalty in a Competitive Market
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Cover Story
WISCONSIN
September 2007
VOL. 23, NO. 12
How can you build customer
loyalty in a competitive market?
It’s a challenge, but there are
ways to do it as our feature writer,
Marcus Wally, spells out here with
a number of methods you can
use!
®
A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION
MAGAZINE™
Features
13
To Share or Not to Share
What are your obligations to share buyer feedback with the
owner after showing a property? Find out here what obligations
you may or may not have.
22 The Wisconsin Way Project
The WRA is joining the effort to reduce the property taxes
Wisconsinites pay while maintaining our high quality of life.
Here are the details.
24 Four Cases Important to REALTORS
®
Building Customer
The state Supreme Court will soon hear four cases that affect
property owners and our industry. Find out what these cases
could mean to you.
Loyalty in a
Competitive Market
Articles
4
10
14
6
news.wra.org
Wisconsin Home Sales
Fall in Second Quarter
19
Despite the drop, the good news is that
they still outpace the nation and the
Midwest! For more specifics, turn here.
Best of the Legal Hotline
21
Procuring cause – what is it, and more
importantly, who can claim it? While the
facts need to be weighed on a case-bycase basis, here are some pointers.
Sales Concessions
28
Assessors and appraisers need to be
alerted when the sales price involves
concessions or other creative financing
to minimize the overvaluation of
properties.
Look Who’s Coming to Convention!
We have some exciting programs
planned for you at convention, including
two outstanding speakers presenting at
the Opening and General Sessions.
A Guide to PC Security
How can you protect your PC from
adware, spyware, viruses and other
maladies of modern computing?
There are lots of options available
as you’ll see here.
Kagen vs. Gard
It looks like former Wisconsin Assembly
Speaker John Gard may try to regain his
Congressional seat in the 8th District in
the 2008 elections.
1
Inside
the wra
with Bill Malkasian
W
hat a difference a year or two makes in describing
the status of the real estate industry. This month’s
issue focuses on customer retention. A year ago, this
topic would have called for a different set of stories
than we feature this month in the current market. It’s a different
market, so whether you’re new to the field or you’ve been
around for a while, these articles are worth a quick read.
Bill Malkasian
WRA President
Talking about the market, the WRA’s real estate statistics for the
second quarter can be found on page 4. The market is down 7.2
percent from the same quarter a year ago, however, the most
important point is that Wisconsin is still outpacing the rest of
the Midwest and the nation as a whole. Considering the flurry
of news about the financial markets you’ve been reading and
hearing about we’re quite pleased, as we told the press, to have
a stable real estate market here in Wisconsin.
As we turn the corner into the last quarter of 2007, you will want
to take a look at Mike Theo’s article on page 22 on the Wisconsin
Way Project. The WRA is working with other organizations
on property tax issues, and there are some progressive and
innovative suggestions on educating the public about the
challenges elected officials face with these issues. I’m proud
that we’re at the forefront of this effort.
Speaking of politics, Joe Murray wrote a piece about the likely
rematch between incumbent Steve Kagen and former Speaker
John Gard in the 8th Congressional District. If you thought the
2006 race was tough, wait until the 2008 campaign gets under
way. If you live and vote in the 8th Congressional District, you
should take a moment and read this story.
And on a final, personal note, there are several items I’d like to
call your attention to:
• The WRA’s Annual Convention is right around the corner, and
there’s still time to register. It’s a great opportunity for us to
welcome Mike Spranger, 2007-2008 WRA Chairman, and the
rest of the 2008 leadership team and to say thank-you to
Roger Rushman and the 2007 leadership group.
• Speaking of Roger, I’d like to express my sincere thanks to
him on behalf of the WRA staff and membership. Roger has
personally led us through many challenges, and we’re all
indebted to him for a great year.
• AND LASTLY … congratulations to one of our WRA staff
members on 30 years of service. Kitty Kuhl, senior vice
president of business services, celebrates 30 years with the
WRA this month. I wish to personally thank her for creating
the foremost and premier real estate education program
in the country. You can send your note of thanks to Kitty at
kitty@wra.org.
See you at convention!
Bill Malkasian
And note Tom Larson’s article about recent Supreme Court
cases that affect real estate, including economic development
corporations being subject to open meetings/records laws,
applying open records law to property assessment records,
the application of the economic loss doctrine to residential real
estate, and a case about the ripeness of declaratory judgment
actions. These issues are so important to real estate – which is
part of the reason the WRA Board of Directors voted affirmatively
to continue to include $15 of member dues in support of the Legal
Action Fund. The Legal Action Fund Program is one of the most
important programs the association has today for members. You
can find more information on the Legal Action Fund by visiting
www.wra.org/legal/legal_action/legal_action_fund.asp.
2
Wisconsin Real Estate Magazine, September 2007
news.wra.org
Wisconsin Real Estate Magazine™ is published by the
WISCONSIN REALTORS® ASSOCIATION.
Trademark issued pursuant to Wisconsin state statute; federal trademark is pending.
Roger Rushman, Chairman
rrushman@firstweber.com
Mike Spranger, ABR, CRS, GRI, Chairman-Elect
sprangerm@firstweber.com
n o t e s
f r o m
t h e
w r a
Mike Mulleady, GRI, Treasurer
mikemulleady@northwoodsrealty.com
William E. Malkasian, cae, President
wem@wra.org
Instructor of the Year
CRS of the Year
Tom Lundstedt
Eunice Beekman
Tom Lundstedt Seminars, Ephraim
VandeZande Real Estate, Inc., Waupon
Editorial Staff:
William E. Malkasian
Publisher
Robert Uhrina
Managing Editor
Terry O’Connor
Publication Editor
Nicole Breithaupt
Graphic Designer
Cover Design by: Nicole Breithaupt
Wisconsin Real Estate Magazine, USPS 597-850, ISSN 15480526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION,
4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage
paid in Madison, WI and additional mailing offices. An annual subscription
rate of $5 is included in membership dues and a copy is mailed to every
paid REALTOR® and affiliate member of the association. Nonmember
subscription rate: $60. POSTMASTER: please send address changes to the
WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201,
Madison WI 53704-7337.
Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper
credit in all articles or commentaries, and the WISCONSIN REALTORS®
ASSOCIATION is provided with a copy of any reprint.
Advertising of third party products and services herein does not imply
endorsement by the WRA unless specifically stated. Furthermore, the WRA
does not endorse, approve, or otherwise warrant the accuracy or legality
of any information or content contained in advertisements. Any questions
regarding advertising policies should be directed toward the editor.
Distinguished Service Awards
Contact Us:
4801 Forest Run Rd., Suite 201
Madison, WI, 53704-7337
(608) 241-2047 • (800) 279-1972
legal hotline: (608) 242-2296
•
(800) 799-4468
general fax: (608) 241-2901
products/education fax: (608) 241-5168
Roger Rushman
Joyce Bytof
Sue Decker
legal hotline fax: (608) 242-2279
First Weber Group,
Realtors, Delafield
Coldwell Banker The Real
Estate Group, Inc., Appleton
Century 21 Gold Key Realty, Inc.,
Marshfield
president fax: (608) 242-2267
e-mail: editor@wra.org
Web site: www.wra.org
3
3
Chairman’s Corner
W
Roger Rushman
Chairman
ow, what a year! My term as chairman is
coming to a close, and I am amazed to look
back and review how many great challenges
and opportunities there have been this year. When I
became chairman, my focus was on three significant
tools that the WRA provides for its members:
• Cooperation: REALTORS® get it! Nobody works
together at making an industry the envy of the
business world better than REALTORS®. Due
to the hard work of many, the statewide datasharing initiative is just another example of how
well REALTORS® work together.
• Education: Kitty and her staff continue to be
the best at what they do! Wisconsin is the envy
of the country with our wide program offerings
including QuickStart, continuing education,
distance learning, forms, GRI, CRS and the annual
convention. I hope you are taking advantage
of these great educational opportunities to
continually improve yourself and your business.
I have truly enjoyed my time as your chairman. I
have had the incredible opportunity to forge new
friendships while renewing and strengthening old
ones. I continue to be very proud of our organization
and look forward to its new leadership carrying our
momentum into the coming years. Toward that end,
please join me in welcoming Mike Spranger as your
incoming chairman, and offer him the same support
and unity that you have so generously given me over
the past year.
• Legislation: Mike Theo, Tom Larson and
Joe Murray are hard at work protecting and
promoting REALTOR® issues. Piers, waterfront
rights, condominiums and the transfer tax are
just a few of the key issues they are working on
today. And now with our new Political Strategy
Group, we’ll be able to provide guidance to the
WRA Board of Directors and our WRA staff to
continually protect our issues.
Respectfully,
Roger C. Rushman
Wisconsin Home Sales Fall in Second Quarter
But Outpace the Nation and the Midwest
By Dr. David Clark
M
adison – Wisconsin home
sales moderated in the second
quarter of 2007 according to
recent figures released by the Wisconsin
REALTORS® Association. Existing home
sales in the state fell 7.2 percent in the
second quarter of 2007 relative to that
same quarter last year, yet this outpaced
the nation, which fell 10.8 percent over
the period, as well as the Midwest, which
dropped 8.4 percent. In addition, unlike
some regions, the median price of a home
in Wisconsin remained slightly above the
level of last year, increasing 1.2 percent
to $168,000. “There is no doubt that
Wisconsin’s housing market has softened
this year, but we have maintained prices
and we are weathering the changes in the
lending markets better than many states,”
said WRA Chairman Roger Rushman.
He added that many of the market
fundamentals give reason for optimism
for the balance of the year. “There was
slight growth in jobs over the period and
even though 30-year fixed rate mortgage
rates have inched up in the last three
months, they remain in the 6.7 percent
range which keeps housing affordable for
new buyers,” he said.
Second Quarter Regional Sales Data
Comparing the second quarter of 2007
with the same quarter last year, existing
home sales fell in every region in the
state, although the regional decline varied
somewhat. Specifically, home sales were
down just 1.9 percent in the Northeast
region, while they fell between 5.5 percent
and 5.8 percent in the Western and South
Second Quarter ... continued on page 12
QUARTERLY ACTIVITY – Q2 2007
Median Price
Existing Home Sales
Region
Q2-2007
Q2-2006
% Change
Q2-2007
Q2-2006
% Change
Southeast
$188,900 $184,400 2.4%
7325
8397
-12.8%
South Central
$183,600 $181,700 1.0%
4152
4406
-5.8%
West
$153,800 $153,300 0.3%
1610
1703
-5.5%
Northeast
$135,400 $135,400 0.0%
3280
3343
-1.9%
Central
$126,200 $121,400 4.0%
1002
1090
-8.1%
North
$128,900 $124,400 3.6%
1436
1611
-10.9%
4
September 2007
R E A L T O R®
NEWSWIRE
Top News Stories in and Around the Industry
Milwaukee Ranks Among Top
Retirement Places
REALTOR® Survey Reveals Increased
Demand for MLS Consolidation
Milwaukee Business Journal (WI)
PRNewswire
Milwaukee has been honored by AARP The
Magazine as one of the top five places in the
country for retirees to live. The publication judged
a number of markets on such criteria as quality of
local health care, presence of mass-transit systems,
and the availability of mixed-use housing to deliver
its rankings. The top five also included Atlanta;
Boston’s Beacon Hill neighborhood; Chandler,
Ariz.; and Portland, Ore. As far as Milwaukee was
concerned, AARP The Magazine specifically cited
the market’s recent condominium boom as reason
for seniors to consider retiring there. The article
added: “An example of urban renewal at its best,
Milwaukee features picturesque river walks and
affordable waterfront living.”
Of the agents and Multiple Listing Service (MLS)
executives polled by the National Association of
REALTORS® for its 2007 REALTOR® MLS Technology
Survey, the number in favor of a statewide MLS
jumped to almost 33 percent from 19 percent in
2006. Twenty-seven percent, meanwhile, preferred
having a metropolitan statistical area MLS, while
21 percent said a larger market region within their
state would be ideal. The number of respondents
reporting consolidation of their MLS with at least
one other doubled to 30 percent from 15 percent.
In terms of technology and security, close to 67
percent of MLS executives report the use of a RETS
(or real estate transaction standard) interface to
facilitate real-time data sharing regardless of the
software they use. Finally, 27 percent employ twofactor authentication to ensure that only authorized
parties are granted access to the database.
Which States Have the Highest
Closing Costs?
Realty Times, Evans, Blanche
New York has the most expensive closing costs in
the country at $3,830, according to an annual
report from Bankrate.com, but a borrower taking
out a $200,000 mortgage in Indiana would pay an
average of $2,339--or $1,491 less--for origination,
title and closing costs. Topping Bankrate.com’s
report for the third straight year, New York was
followed by Texas. Florida, Pennsylvania, and
Ohio followed No. 3-ranked Indiana. The national
average in closing costs is $2,736, with 24 states
and the District of Columbia having higher closing
costs and another two dozen states having closing
costs that are lower than the national average.
Kickbacks and undisclosed referral fees have been
problems for the closing industry, and some lenders
are now introducing flat-fee pricing or products
carrying no fees and no mortgage insurance in an
effort to lower closing costs.
HGTV Series Seeks Central Wisconsin
Homes to Feature
Wisconsin Daily Rapids Tribune
HGTV’s “If Walls Could Talk” series is currently
in production on its ninth season and is looking
for Wisconsin homes to profile. Specifically, the
show seeks houses with either unusual stories
or interesting past histories. Often, the various
episodes center around new homeowners who
make surprising historical discoveries about their
residences during restoration and repair efforts.
Homeowners interested in having their properties
featured on an upcoming show should call HGTV’s
Jenna Friederich at 303-712-3146.
More Communities Pass Offender
Laws
Milwaukee Journal Sentinel, Sink, Lisa
More and more Wisconsin communities are passing
laws that banish sex offenders from living in all but
small pockets of their general area. The heat is
now on elected officials not to be the last to pass
such laws and thus become a “dumping ground”
for deviants. Cudahy City Attorney Paul Eberhardy
observes, “It’s the ‘everybody else is doing it so
now we need to do it’ rationale. I don’t think that
makes good law.” Among the numerous Wisconsin
markets that have passed residency restrictions since
last November are Algoma, Bayside, Glendale
and Menomonee Falls. Meanwhile, no less than 30
states have approved varying restrictions on where
sex offenders may reside or loiter, including all of
Wisconsin’s neighboring states except Minnesota.
Such laws have raised questions over whether they
will so stigmatize sex offenders and force them
away from support systems that they may commit
new crimes. The laws also have some who live in
those few “safe zones” for offenders concerned that
their property values may suffer as a result.
Newspapers Feel Real Estate Woes
Forbes, Sutel, Seth
The nation’s leading newspaper publishers – Tribune
Co., Gannett Co. and McClatchy Co. – watched
revenues decline in the second quarter, which some
observers believe can be attributed to a drop in
real estate advertisements in the midst of a housing
slowdown. However, others warn that newspapers
are not going to get much of that revenue back when
the market rebounds because realty companies are
shifting more of their marketing budgets to online
advertising. If real estate classifieds follow helpwanted ads to the Internet on a permanent basis,
experts say newspapers could be in trouble, given
that over 35 percent of their revenues are tied to
classifieds. More and more property agents are
turning to Realtor.org, Yahoo and other online home
listings sites as well as blogs and other Web-based
mediums, as home buyers and sellers log onto the
Internet in increasing numbers. “With younger
agents, there’s a trend of going online. There’s a
realization that’s where they need to be,” says RE/
MAX Denver regional advertising director Abby
Lee. According to Charlie Diederich, marketing and
advertising director of the Newspaper Association
of America, newspapers need to beef up their Web
sites to offer more advanced tools if they hope to
attract REALTORS® and consumers.
Many Homeowners Near Lambeau
Field Willing to Sell Property
Green Bay Press-Gazette (WI), Zarling, Patti
Some homeowners in the village of Ashwaubenon
who live close to Lambeau Field, the beloved
home stadium of the Green Bay Packers, are
looking to sell their properties for the right price.
Ashwaubenon officials recently held an informal
gathering of homeowners to discuss the future of
the local property market. Since numerous houses
have either recently been sold or put on the selling
block in the neighborhood, local leaders felt the
time was right to craft a comprehensive plan to
address future development. Several attendees
expressed special interest in selling their homes
to the Packers organization. The team recently
purchased one home close to the stadium, which
it plans to convert into additional parking. Jason
Wied, the Packers’ vice president of administration,
confirmed that he has recently fielded numerous
calls from Ashwaubenon residents looking to
gauge the team’s interest in buying their properties
for similar purposes. Wied said the Packers would
like to maintain the surrounding community feel as
much as possible, stating, “The issue for us is we
love the neighborhood just the way it is. We think
we’ve got one of the best stadiums in the country.”
Nevertheless, Wied said the team is interested in
additional opportunities to expand its parking.
REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc. Reproduction,
use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior written permission from the
Wisconsin REALTORS® Association.
5
By Marcus a. Wally
W
owing customers and earning their loyalty is a challenge in our marketplace today. But
finding the right formula can lead to “raving fans” and overwhelming success both
financially and emotionally.
Today REALTORS® are challenged with developing customer-endearing practices that create a
powerful real estate experience and lead to a devoted customer base.
We’ve all heard the slogan “under promise and over deliver.” As a salesperson, it comes naturally
that I want to please everyone and promise the moon and stars. What happens when I am not able
to deliver the goods? Well, I lose control of my business ethics and my customers/clients start to doubt
me.
Year after year, when the National Association of REALTORS® (NAR) conducts surveys, the public
consistently states that working with an ethical professional is one of their top priorities. This is even
more important than working with a top producer.
One of my best tips is to always educate my clients/customers as to the value of my following the
REALTOR® Code of Ethics. Today, NAR spends millions of dollars educating the public on the difference
between working with a licensee and working with a REALTOR®. It is our job to affirm those differences
and show the added value that we bring to the table.
6
news.wra.org
Being in the real
estate industry has
taught me that once
I can “teach” my
loyal customers/
clients how to
refer me, my job
becomes more
manageable.
In my 17-year career, I have noticed that the public does not
understand how our business works and furthermore is not sure how
we get paid. I make it my practice to explain the MLS (Multiple
Listing Service) and how it functions. The public may be familiar with
those three letters, but I can promise you they don’t understand the
system or how we are paid. For many, they believe I am on a salary
or that I will receive the entire sales commission. By teaching them
I earn their loyalty and my long-term customer retention increases. I
always ask for their commitment and thank them for their loyalty.
I repeatedly use the word “loyalty” in my conversations to remind
them of their promise to stick with me. This is just the beginning of
my creating the distinctive personality that gives a brand its identity.
I am the brand I want them to always choose. And brand identity is
key to putting all the good things I do into a single impression that
my customers can hold onto and identify with.
The ability to increase customer retention is critical in our business.
One can take either the shotgun approach, and try to work with
everyone in the world one time, or one can take the approach of
developing a close-knit group of loyal fans that can help you build
your business. For me, the long-term approach is the right choice.
Being in the real estate industry has taught me that once I can
“teach” my loyal customers/clients how to refer me, my job becomes
more manageable. But my “sphere of influence” must be taught how
to refer me or the system will not work. They too must understand
their value and how I need them to push me to the top. Together we
create that success and without them, I am limited.
A standard practice of mine has always been to ask the magic
question right up front and that is, “Are you currently working with
a REALTOR®?” The recently updated version of our Code of Ethics
requires this question of us. If they do have a prior relationship, I
know about it right up front – I do not violate my ethical duties and
I am in a position to steer them back to the agent who has invested
time with them. Being proactive in this area is critical to consumer
retention. Cooperating agents will soon learn of your conscientious
behavior, and you will become the “sought-out agent” that everyone
wants to do business with. I try to follow the Code with every breath
I take. It is my backbone and has contributed to my overall
success.
Another tip I perform consistently is to acknowledge my customers/
clients birthdays and anniversaries. I make it a point to call and sing
on their special day. I call the home purposely, and leave the
greeting on their answering machine. The follow-up call from them
thanking me for making their day makes the effort all worthwhile.
And believe me, most people think it is so corny they would never
do it, so when I do, I stand out and they remember me! What am I
7
I try to never mention real
really doing? I’m acknowledging that I care and making
sure they feel important and special … which they are. If I
don’t have them, I don’t have my groceries.
estate. There is so much
Forming habits is the secret to long term customer retention.
For instance, each time I receive a referral I quickly mail a
“THANK YOU FOR THE REFERRAL” card that lets the
referring person know how much I appreciate his or her
trust in me. I am reaffirming that he or she is appreciated
and is contributing to my success. Each and every one of
them is a vital part of my team.
“asking for the business.”
Along that same line, the tremendous power of personal
notes comes to mind. One of my daily “to do’s” is to write
one or two personal notes. Since our time is our most
valuable asset, taking the time to sit down and write a
personal note holds great value. These notes don’t have to
be long and detailed, they can be as simple as:
is a time and place for
Hi Barbara, It was so good to bump into you yesterday at
the grocery store. You look well and happy! Hope your
summer has been filled with lots of fun activities for you and
the kids. Trust the new job is working out and you are
getting settled. Give me a ring and let’s grab a bite of lunch
one day soon. I’d like to catch up with you and Steve.
– Marcus Wally
more to my career than
Although I am a great
proponent of asking
for the business, there
everything. Appropriate
judgment is the key
here. I’m building the
relationship and that
relationship is more than
business!
I try to never mention real estate. There is so much more to
my career than “asking for the business.” Although I am a
great proponent of asking for the business, there is a time
and place for everything. Appropriate judgment is the key
here. I’m building the relationship and that relationship is
more than business!
8
news.wra.org
5
tips to ensure customer loyalty
1. Include your clients/customers – Make sure they care. This can be
developed when they can be a part and help you out. This allows
them to feel like they are contributing to your overall success. Make
sure they do not feel obligated and always remember to express your
gratitude.
2. Give me the straight scoop – Ask questions of your clients/customers
like, “If this were your real estate business, how would you …”? This
approach is much better than a survey. Make sure you create an
environment that makes them feel comfortable with telling you their
real feelings … pro or con.
3. Share your knowledge/education – As a teacher, I tell all of my
customers/clients up front that my approach is to share my skills with
them so that they can make intelligent decisions. Giving people
information about me and real property responds to their thirst for
learning. The real estate company able to implant wisdom as part of
the customer’s experience will win client devotion.
A good example of this is my “Tax Time is Coming” letter that I send out
right after the first of the year. I include a copy of their Settlement
Statement (HUD1). Sending an item of value is the key here. Some
agents send a 9-volt battery for the household smoke alarms to ensure
they’re working properly.
4. Keep your promise – This involves making sure they know you care.
Caring is a major part of earning loyalty. Customers today don’t
expect perfection … I tell them that I am human and might make a
mistake. I ask for their help and try not to fret a problem.
Research shows that customers who have a problem with a company and
have that problem spectacularly solved become more loyal to the
company than customers who never experienced a problem. That’s
because the effort to solve the customer’s problem firms the trust that was
broken. And in certain cases, perhaps a mistake is acknowledged by a
fee adjustment on our part.
5. Make their experience memorable – Do something unexpected!
Create a memory that will last a life time.
Marcus A. Wally, MBA, GRI, CIPS, AHWD, RSPS, TRC, is an active Florida REALTOR® in St. Augustine, Florida – “OUR NATION’S OLDEST CITY.”
Marcus is the founder and broker of NEW WORLD REALTY, which man-
Following these suggestions will ensure that your fans don’t just recommend
you—they insist their friends do business with you, too. What’s more, they
not only forgive you when you make mistakes, they defend you to others
who have had bad experiences. They give you candid feedback when
they spot a problem, and that’s feedback on which you can build a better
business.
ages coaching and facilitation of education classes around the world. He
has an MBA from the University of North Florida in Jacksonville. Marcus
is a member of the AT HOME WITH DIVERSITY faculty. Marcus can be
Come and meet Marcus Wally in person at the WRA’s Annual Convention, September
23-25, 2007 at the Kalahari Resort and Convention Center. In addition to teaching the
ABR e-Buyer elective, Marcus will present two workshops: Ten Tips for Exceptional
Customer Service and I’ve Got the Power.
reached at 904-669-1081 or by e-mail at mwally@cbwwcorp.com.
For more information, visit www.wra.org\Convention07.
entered the real estate profession in 1991. He is a NAR faculty member
for the Certified International Property Specialist (CIPS) program, and
9
Best of the
Legal Hotline
Procuring Cause
What is Procuring Cause?
By Tracy Rucka
Procuring cause is the standard by which
commission offered by the listing broker
through the MLS to cooperating brokers is
earned. Generally speaking, the broker who
is the procuring cause was involved in the
uninterrupted series of events that resulted
in a successful transaction. This determination is made by reviewing many factors in the
transaction. no automatic decisions can be
made based on the presence or absence of any
one factor, and no predetermined formula
will always decide whether a broker is the
procuring cause of a sale. The facts need to
be weighed on a case-by-case basis.
Series of Events
The listing agent held an open house on Sunday, and a
couple drove by, saw the sign and stopped. The buyers
spent an hour and a half touring the house, asking
the agent questions and discussing their options. The
buyers really wanted to make an offer on the house but
had written an offer with another broker on another
home, and had not yet heard back from that seller. The
buyers left the agent with questions about utilities and
assessments. On Monday, the listing agent gathered
the information and gave it to the buyers. The listing
agent would like to know if working with the couple
gives the listing agent procuring cause for a purchase
of the open house home? What happens if the other
REALTOR® drafts an offer?
There is not yet enough information to determine if
the listing broker is the procuring cause of the sale.
It will be up to the listing agent to maintain the
relationship with the buyer and complete the sale to
assure procuring cause. Being involved in the first
contact or introduction of the property to the buyer
establishes the beginning of the series of events, but
does not automatically assure procuring cause. The
10
fact that the listing broker introduced the home to the
buyers (when the buyer drove by the open house sign
and went into the home), had conversations with the
buyers that helped build their interest and followed
up with additional information will all be part of the
series of events. It appears, but for the mitigating factor
of the other outstanding offer, the buyers would have
drafted an offer. The timely follow-up to the buyers’
questions is activity that maintains the series of events.
Provided the listing agent continues on this path and
does not abandon or estrange the buyers, the listing
broker will probably be the procuring cause of the
sale even if another broker enters into the transaction.
Procuring cause here is the listing broker’s to keep or
lose, even if another broker becomes involved in the
transaction. In the absence of any demonstrable break
in the continuity of events, such as abandonment or
estrangement, a panel would most likely find in favor
of the listing agent.
Successful Transaction
A cooperating MLS broker drafted a full price, no
contingency offer that was rejected by the seller.
The buyer wants the broker to pursue the selling
commission. Can this be done?
According to the terms and conditions of an offer of
compensation made through the MLS, a successful
transaction is required to earn the commission as the
procuring cause of the sale. A successful transaction is
defined as a sale that closes or a lease that is executed.
The cooperating broker was instrumental in procuring
the offer that triggered the listing broker’s right to
commission according to the procurement provisions
of the listing contract. However, there is no transaction
between the buyer and the seller, so the cooperating
broker is not entitled to the selling commission.
Uninterrupted/ Estrangement
A broker showed a property to a buyer and drafted
an offer. The buyer and seller were unable to reach an
agreement. The communications between the brokers
and parties became adversarial and antagonistic,
news.wra.org
The analysis of procuring cause must be made
on a case-by-case basis, considering dozens
of factors and the activity of each of the agents
involved in the transaction.
Legal Hotline ... continued from page 13
so the buyer went to a broker from another company and looked
at many other properties. The second broker suggested the buyer
reconsider the first property and the second broker drafted a new
offer. Is the second broker the procuring cause?
An arbitration hearing panel will make the determination if the
brokers are unable to resolve this by negotiation or mediation.
The panel will consider why the buyer chose to work with the
second broker. Estrangement results if the first broker engaged in
conduct that caused the purchaser to terminate the relationship.
Examples of actions that could be estrangement include: refusal
to draft an offer; antagonistic behavior towards the buyer; acting
without the consent of the buyer; acting in a manner contradictory
to the buyer’s direction; or other bad faith actions. The failure of
the negotiations, if due to the first broker’s interference, could be
estrangement.
If the buyer was estranged due to the first broker’s actions, the
second broker’s actions can create a second series of events
resulting in procuring cause for the second broker. The panel will
look at the continuity or discontinuity of the original and final
negotiations, which resulted in the successful transaction. The
hearing panel may consider whether the transaction would have
occurred without the actions of the second broker. The second
broker’s encouragement to consider the subject property and
drafting of the accepted offer supports the second broker’s claim
for procuring cause.
Uninterrupted/Abandonment
The agent, who has the consumer’s present home listed, drafted an
offer for the consumers to buy a condominium listed with another
MLS company. The offer on the condominium was terminated
because the sale of home contingency was not satisfied. The
buyers told the condominium listing agent they would give him a
call when they got an accepted offer on their home. Several weeks
later, when their listing agent was out of town, the listing agent
for the condominium wrote a new offer for the consumers, and the
condominium seller accepted. The first agent wants a commission
on the condominium sale as the procuring cause. The manager at
the condominium listing company says the first agent abandoned
the buyer as well as the property. Is there abandonment of the real
estate or customers?
Yes, abandonment may occur in relation to the buyer or a property.
Even if a broker maintains contact with the buyer about properties
in general or, in this case, their listing, abandonment may occur
with regard to a property if the broker does not maintain a series
of events regarding that property. The brokers may consider
whether the first agent’s conduct caused a break in the series
of events leading to the rejection of the first offer, and whether
the successful transaction was actually brought about through
the initiation of a separate, subsequent series of events by the
condominium listing broker.
The key is: Did the first agent actively maintain ongoing contact
with the consumers? Or, did the broker’s absence, inactivity or
perceived inactivity cause the buyer to reasonably conclude that
the first agent had lost interest or disengaged from the transaction?
Given the amount of time that elapsed between the first agent’s
negotiations and the time of the accepted offer, and the fact that
the first agent was not available due to his vacation, there may
have been abandonment.
Buyer Agency
A broker gets a call from a buyer that he has worked with in the
past. The buyer tells the broker what he is looking for, and the
broker identifies several MLS properties that would be suitable,
one of which the buyer saw previously with the listing broker. The
broker discusses agency with the buyer and the buyer chooses buyer
agency. Can the buyer’s agent draft an offer on the property the
buyer saw with the listing broker?
There are two issues here, agency and procuring cause. The
buyer agency agreement authorizes the buyer’s agent to provide
brokerage services to the buyer. Unless specific properties are
excluded from the buyer agency agreement, the buyer’s agent
may draft the offer for the buyer. The WB-36 Buyer Agency/
Tenant Representation Agreement may be negotiated to allow
the broker to accept compensation from an owner or an owner’s
agent, reducing the compensation owed by the buyer. However,
whether the buyer agent is procuring cause is a different matter.
The buyer’s agent may draft the offer, but because the buyer
worked directly with the listing broker on the subject property,
the buyer’s agent will not necessarily be the procuring cause of the
sale and earn the compensation offered through the MLS. Buyer
agency does not equal procuring cause. The fact that the second
broker is aware of the first broker’s activity does not prevent the
second broker from becoming involved in the series of events. The
Legal Hotline ... continued on page 12
11
Second Quarter ... continued from page 4
Central regions. Existing home sales were down 8.1 percent
in the Central region of the state, and they slid 10.9 percent
in the Northern region, which tends to be somewhat volatile
as a result of the concentration of secondary homes in some
areas. Finally, home sales fell 12.8 percent in the most heavily
populated region, the Southeast.
Second Quarter Median Housing Price Data
Legal Hotline ... continued from page 11
question is whether the relationship with the listing broker has
broken down due to abandonment or estrangement. The buyer’s
agent enters into the transaction knowing full well that his efforts
to finalize a sale between the buyer and seller are not necessarily
enough to earn the compensation offered by the listing broker.
Median home prices in the second quarter rose a modest 1.2
percent to $168,000, according to the REALTORS®’ report. This
was similar to the 1.1 percent increase seen in the first quarter
of the year. Across the state, median prices increased in five of
the six regions and were unchanged in one region. “Despite
the decline in home sales statewide, there remains no evidence
of a Wisconsin housing bubble,” said WRA President William
Malkasian. “Even though conventional 30-year mortgage rates
have inched up almost 0.5 percent in the last two months,
they remain around 6.7 percent, which is low by historical
standards,” said Malkasian. “Given the overall health of the
economy in the state, this is a good time to get into the market,
especially for first time buyers,” he noted.
Factors
Is there a simple checklist for a broker to know if he or she is
the procuring cause of the sale when thinking about going to
arbitration?
The analysis of procuring cause must be made on a case-by-case
basis, considering dozens of factors and the activity of each of the
agents involved in the transaction. When deciding whether or
not to file for arbitration, the broker may consider the following
questions:
• Who made the first introduction of the property and how was it
made to the ultimate purchaser?
• Did the introduction evolve into a series of events that resulted in
the sale?
• Did the introducing agent maintain contact throughout the
transaction?
• Did the agent’s conduct prompt the buyer to look elsewhere for
services?
• Was a second broker invited into the transaction by the buyer
because of the first broker’s abandonment or estrangement?
• What did the agents know about the participation of other agents in
the transaction?
• Was the second broker’s participation necessary to complete the
sale?
The answers to these questions will help a broker decide whether
or not to make an arbitration request. The full list of factors
considered by a hearing panel during an arbitration is available
on the National Association of REALTORS® Web site at www.
realtor.org/LetterLw.nsf/pages/95procuringcausefactors?Open
Document&Login.
Tracy Rucka is a Staff Attorney for the WRA.
12
of Wisconsin
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news.wra.org
Buyer
Feedback
To Share or Not to Share
By Kevin King
F
requently we receive questions from listing brokers and
agents relative to the obligation of selling agents – both
subagents and buyers’ agents – to provide feedback after
showing a property. Obviously the seller wants to know how
the showing went, if there is any interest on the part of the
buyers, if the property is priced right in the opinion of the
buyers and the selling agent, what can be done to improve the
chances of sale, etc.
With almost the same frequency, we receive questions from
buyers’ agents wanting to know their legal obligation to respond
to listing brokers and agents requesting feedback. They are
concerned about compromising a clients’ negotiating position
should they respond. A secondary concern is that they may be
portrayed as unethical and uncooperative.
Ultimately it is important to understand that a buyer’s agent’s
obligation to provide feedback is at the discretion of the buyer’s
agent – there is no law that requires it. It is not unethical for the
buyer’s agent to decline to provide feedback, nor does it mean the
buyer’s agent is refusing to cooperate. At the same time, buyers’
agents must recognize that it is perfectly permissible for the listing
agent to request feedback. Making the request is not illegal or
unethical. Professionals representing the interests of their clients
must understand that, in attempting to do so, they must also
respect the other professional’s duty to protect the best interests
of their clients.
Kevin King is General Counsel for the WRA.
So where is the balance? First of all, everyone should understand
that it is appropriate for the listing agent to request feedback from
cooperating agents showing the property. Obtaining feedback
from other agents and prospective buyers can be very beneficial
to the marketing plan implemented by the seller and the listing
agent. Prospective buyers are likely viewing many homes – and
their comparative opinions as to price, condition, features and
more can help make the seller more competitive.
On the other hand, many of the questions that are asked in the
name of showing feedback could have a negative impact on
a prospective buyer’s negotiating position. When evaluating
properties, buyers repeatedly ask their buyers’ agents for advice
and counsel. Certain conversations between the buyer and agent
are not expected to be shared. Should the buyer expect that the
buyer’s agent would provide a professional opinion to the listing
agent to be shared with the seller relative to the property or the
possible transaction? I’m sure we can all agree that’s not the case.
Under Wisconsin real estate law, all licensees have a duty to keep
confidential any information given to them in confidence, as well
as any information known by the licensee that a reasonable person
would expect to be kept confidential (with certain exceptions,
such as disclosure mandated by law). Thus, the selling broker,
whether a buyer’s agent or not, must be careful when responding
to requests for showing feedback that he or she does not breach
this duty of confidentiality.
A STEP-BY-STEP GUIDE TO SELLING
MORE SHOREWOOD PROPERTIES.
To help you state your case about our amazing
community, we’ve created a walking kit filled
with village facts, a walking map and more.
Get your free supply by calling 414-847-2700.
Or visit walkshorewood.com.
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13
6/13/07 9:26:45 AM
Are You Reporting
Sales Concessions?
By Debbi Conrad
R
EALTORS® often express concern over property values
that appear to be artificially inflated through creative
financing techniques. Properties frequently sell above
the price originally agreed upon by the parties, with seller
concessions netting the seller the original price. Higher
purchase prices may permit buyers to obtain more favorable
financing, but the buyers are left with higher assessed values,
higher property taxes, potentially higher insurance costs and
higher mortgage payments. When appraisers and assessors
use the sales data from these transactions as comparables to
14
establish values for other properties, there may be a domino
effect resulting in the overvaluation of other properties.
This will stop if the assessors and appraisers are alerted that the
sales price may involve concessions or other creative financing.
The Uniform Standards of Professional Appraisal Practice
(USPAP), in Standards Rules 1-2(c), requires appraisers to clearly
identify sales or financing concessions and analyze their impact
on value. In addition, some groups, such as Fannie Mae, specify
how sales or financing concessions are to be addressed with the
news.wra.org
Higher purchase
prices may permit
buyers to obtain more
favorable financing,
but the buyers are left
with higher assessed
values, higher property
taxes, potentially
higher insurance costs
and higher mortgage
payments.
use of comparables in the appraisal. The Fannie Mae/Freddie Mac
appraisal report forms, for instance, direct that, “Adjustments to
comparables must be made for special or creative financing or
sales concessions.”
452.133(1)(d) and Standard of Practice 1-9 of the REALTOR® Code
of Ethics. Whether financing information is confidential may vary
based upon the parties, lender, brokers and other circumstances,
and thus cannot be determined on a wholesale basis.
Appraisers are often frustrated because information regarding
sales concessions is very hard to find. One potential source is the
Wisconsin Department of Revenue (DOR) Real Estate Transfer
Return (RETR). The RETR Instructions (PE-500a R. 7-07), found
at www.dor.state.wi.us/ust/pe-500a.pdf, require that the total
actual consideration paid be reported as the value, but also requires
that a box be checked if there is any type of seller financing such
as a credit, gift, donation to nonprofit/charity, second mortgage,
land contract, etc. Similar instructions are given for the Wisconsin
Electronic RETR, found at ww2.revenue.wi.gov/GenericFile/
help/eRetr/detail.htm. This will alert assessors and appraisers
accessing DOR data to investigate further to see if concessions or
creative financing had an affect on the sales price instead of just
accepting the price on its face.
Confidentiality is not a concern if the parties authorize the release
of sales concession information. While the state-approved offers
to purchase currently authorize licensees to give a copy of the
offer to appraisers for purposes of the transaction, they do not
authorize the post-closing release of concession information to
appraisers researching comps for subsequent transactions.
One source of additional sales concession information is the MLS
sold data. Some MLSs have various fields for reporting sales
concessions.
Appraisers who are alerted by the RETR or MLS sold data that
a sales concession was involved will, as required by USPAP and
Fannie Mae standards, search for further transaction information
so that the price may be appropriately analyzed and adjusted
before using it as a comp for an appraisal. They will ask the
brokers from the transaction for sales concession or financing
information.
Unfortunately, many brokers do not provide this assistance due
to confidentiality or authorization concerns. REALTORS® have
the duty to preserve confidential information under Wis. Stat. §
The best thing that REALTORS® can do to address all of these
problems is to add a provision to each of their offers whereby
the parties consent to the disclosure of the financing data needed
by appraisers to adjust for sales concessions when using the
sales price to appraise other properties. This alleviates the need
for brokers to determine whether or not this information is
confidential and helps appraisers set fair values.
The following language could be added to each offer to purchase
or offer addendum to obtain party consent: “Buyer and Seller
authorize the agents of Buyer and Seller to report sales concessions
and other financing information to the MLS sold database, as
applicable, and provide appraisers or brokers researching comps,
upon inquiry, with similar information to the extent necessary to
adjust price to reflect market value.”
Making creative financing information available to appraisers
will help maintain accurate property values for the benefit of
Wisconsin consumers, lenders and REALTORS® alike.
Debbi Conrad is Director of Legal Affairs for the WRA.
15
Education
login and visit: www.wra.org/myeducation
ABR
Designation and CE Courses Offered at Convention!
Two-day Buyer Agency Course
Looking to complete a designation or start working toward a new one?
Or would you like to complete your 2007/08 continuing education (CE)
requirements in three days? There are lots of designation classes planned
for the WRA’s 2007 Annual Convention, as well as all four CE courses.
Register Today!
Stand out as an ABR® - join over 50,000 members who are succeeding as
Accredited Buyer Representatives. Start your ABR® designation by attending
the two-day mandatory class on September 23-24, 2007 in Wisconsin Dells
and on November 7-8, 2007 in Sturgeon Bay. This is probably one of the
hottest classes right now … because Buyer Agency is becoming more and
more the way buyers want to do business. This two-day course covers
agency, service delivery, marketing and promotion, and negotiation and risk
management. Call 800-279-1972 and register today. Fulfills the 2007-08 CE4,
• Council of Real Estate Brokerage Managers (CRB)
Leading and Managing Teams
• Accredited Buyer Representative (ABR®)
• Seniors Real Estate Specialist (SRES® and ABR® Elective)
• Accredited Buyer Representative (ABR®) Elective
e-Buyer Course
but does not fulfill NAR Ethics requirement.
Do you need an elective course to complete your ABR® designation?
Check out one of the following classes:
• Certified Commercial Investment Member (CCIM)
Introduction to Commercial Investment Real Estate Analysis
(Fulfills 9 hrs of 2007-08 CE)
SRES® - Seniors Real Estate Specialist
September 23-24, 2007 – Wisconsin Dells
Visit: www.wra.org/SREScourses
• Graduate, REALTOR® Institute Course 2 (GRI)
e-Buyer course
September 23, 2007 – Wisconsin Dells
Visit: www.wra.org/ABRcourses
• Certified Residential Specialist: CRS 201 (CRS)
Real Estate CE 1
Issues Relating to New Listings; Agency Agreements, Legal Advice,
Binding Contracts and Defaults
CE
Real Estate CE 2
Issues Relating to the Offer to Purchase Confidentiality of Offers
Real Estate CE 3
New Developments in the Profession
Real Estate CE 4A
Issues Relating to Real Estate Professionals, Ethics and Fair Housing
Fulfills NAR Ethics requirement.
Appraisal CE – USPAP Update
Graduate, REALTOR® Institute Courses
The Graduate, REALTOR® Institute (GRI) symbol is the mark of a real estate
professional who has made a commitment to providing a superior level of
professional services by earning the GRI designation. REALTORS® with
the GRI designation are highly trained in many areas of real estate to better
serve and protect their clients.
GRI Course 1:
You can complete GRI Course 1 in one of four ways:
Test out of GRI Course 1 by taking an equivalency exam.
Register for the exam and you can complete it on the Internet.
Visit www.wra.org/GRIcourses
Register for the GRI Course 1 Equivalency Exam at your local board/
association.
Complete the four days of QuickStart and pass the exam. Call the WRA at
(800) 279-1972 or (608) 241-2047.
Visit: www.wra.org/GRIcourses
Complete an approved company training program and pass the exam.
GRI
GRI Course 2 – September 22-25, 2007
This four-day program includes CRS201 (Listing Strategies for the Residential
Specialist), so you can earn required credits toward your CRS designation
while earning your GRI designation. GRI Course 2 covers environmental
issues, personal promotion, business ethics, PDAs and digital cameras,
creating a Web presence, e-marketing, tying technology together, selling new
homes and “Listing Strategies for the Residential Specialist” from the CRS
curriculum. GRI Course 2 is being offered during convention at the Kalahari
Resort & Convention Center, Wisconsin Dells, September 22-25, 2007.
Visit www.wra.org/GRIcourses
16
Effective Negotiating for the Real Estate Professional
November 9, 2007 – Sturgeon Bay
Visit: www.wra.org/ABRcourses
Sales Pre-license
To obtain a real estate license in the state of Wisconsin, you must first
complete 72 hours of approved education courses such as our sales and
licensing course. Second, you must pass a state-administered exam. The
WRA is offering an eight-day, accelerated 72-hour sales program on
September 10-13; 17-20, 2007 and November 5-8; 12-15, 2007 in Madison.
Brokers can purchase a $50 discount coupon for only $10, which entitles
your new recruit to a $50 discount on the registration fee. Your new recruits
can be ready to take the exam as soon as they complete the class. Ask them
to call and register today at (800)279-1972. This program is also available
through self-study video or self-study Internet programs.
Visit: www.wra.org/SalesPL
QuickStart
The QuickStart program discusses various methods of communication,
goal setting, time management and incorporating technology into a real
estate agent’s business plan. The program is designed to help agents
become confident in their practice as well as focused on their personal
business plan. Modules 1 and 2 will be offered on October 4-5, 2007 and
Modules 3 and 4 will be offered on November 1-2, 2007 at the WRA in
Madison. Upon completion of the four modules and passing the exam,
agents can receive credit for the completion of GRI Course 1. The fee
is only $240, however, the WRA offers a new member discount of $40,
making the cost of this course only $200 – a fantastic price for four days of
instruction for your new agents. Visit: www.wra.org/QuickStart
Broker Pre-license
If you would like to get your broker’s license, the WRA has the course for
you! The Department of Regulation and Licensing requires that you complete
36 hours of education and pass an exam to become licensed. Areas of study
in this course include: fair housing; real estate practice; approved forms;
trust accounts; and more. Prerequisite: must complete Sales Pre-license
course and pass sales exam. This course will be offered on September 10-13
in Milwaukee or October 8-11 in Madison. This program is also available
through a video self-study version (VHS or DVD) or a self-study Internet
program. Completion of the broker pre-license program, passing the broker
exam and applying for your broker’s license fulfills your 2007-2008 continuing
education requirements. Does not fulfill NAR Ethics requirement.
Visit: www.wra.org/BrokerPL
news.wra.org
Appraisal CE
2006 National USPAP Update
(7 hrs.)
September 25
Kalahari Resort & Convention Center
1305 Kalahari Drive
Wisconsin Dells, WI
November 5
Sheraton Milwaukee
375 South Moorland Rd.
Brookfield, WI
November 6
Howard Johnson Plaza Hotel
3841 East Washington Ave.
Madison, WI
November 7
Radisson Paper Valley Hotel
333 West College Ave.
Appleton, WI
This one-day update course focuses on recent changes to
USPAP requirements for ethical behavior and competent
performance by appraisers. An appraiser must complete
this seven-hour USPAP Update course every two years to
meet the USPAP continuing education requirement.
Appraisal CE through the WRA’s
Distance Learning Program
Procedures for the Unusual Residential
Appraisal Assignment – 4 hrs.
•
•
Economics of Residential Finance – 4.5 hrs.
•
Highest and Best Use – 4 hrs.
Pitfalls-Residential (7 hrs.)
October 11
Wisconsin REALTORS® Association
4801 Forest Run Rd.
Madison, WI
October 12
Appleton, WI
This seminar will give you tips that will help you avoid lawsuits and give you advice on which forms to use and when.
•
Internet Resources for Appraisers – 4 hrs.
Wisconsin REALTORS® Association
4801 Forest Run Rd.
Madison, WI
Country Springs Hotel & Conference Center
2810 Golf Rd.
Pewaukee, WI
The adjustment grid is the most important part of any
appraisal report and the one section that each and every
client looks at with close scrutiny. Learn new methods and
calculations for completing the adjustment grid.
Topics covered include:
• Need for adjustments for differences of
personal property vs. financing in the
sales approach
• Ability to develop a time adjustment
• Analyzing location differences within a market
Fee per course: Appraisal Section Member - $60;
WRA Member - $65; and Nonmember - $70
Visit: www.wra.org/APCEDistanceLearn
Watch programs and events at your
own pace, on your own schedule.
Most live webcasts are offered on
demand following the event.
Script Doctor | Neenah, WI
Best of the Legal Hotline LIVE:
Mortgage Manipulation: It’s Not Nice
to Lie to Lenders and Underwriters
October 19, 2007
www.wra.org/hotlinelive-lending
Wisconsin CRS Members also receive
a $20 discount on Ninja Selling II.
Visit www.wra.org/CRScourses
for more information!
December 6
December 7
Appleton, WI
This seminar will introduce you to a variety of detrimental
conditions and explore the wide range of effects these
conditions can have on property value. You will discuss
strategies to calculate the damages caused by the detrimental conditions and analyze the detrimental condition
based upon fundamental appraisal methodologies. Learn
specialized techniques for collecting market data and drawing property-supported conclusions.
and
Webcasts
ion
d Educat
On Deman
For a complete list of programs,
visit www.wra.org/ondemand.
October 18, 2007
Members of the Wisconsin CRS Chapter
can attend the October 18th session
(Script Doctor) at NO CHARGE.
(7 hrs.)
Webcasts and On Demand Education
On Demand Events
Relevant Environmental Issues for Residential Appraisers – 4 hrs.
Ninja Selling II | Neenah, WI
Receive over 50 disclosures, addenda and disclaimers that
will assist any appraiser in preparing more comprehensive
reports to sail through underwriting and protect the appraiser from lawsuits.
The Adjustment Grid (7 hrs.)
December 3
•
CRS Ninja Selling II
Country Springs Hotel & Conference Center
2810 Golf Road
Pewaukee, WI
Valuations of Detrimental
Conditions in Real Estate
Appraising Two-to-Four family
Properties – 4 hrs.
Income Appraisal Techniques – 4 hrs.
December 4
Other topics include:
• Federal Acquisitions – follow the guidelines
• FNMA Reports – a review of their proper use
• Divorce Reports – how to avoid trouble
• Visual Inventory – how to avoid lawsuits
•
•
Disclosures, Addenda
and Disclaimers to
Appraisal Reports (7 hrs.)
Best of the Legal Hotline LIVE:
Legal Challenges in a Changing
Market
www.wra.org/hotlinelive
WRA Technology Series:
Notebook Computer Buyers Guide
www.wra.org/ondemandtechnology
Distance Learning
On Demand Courses
Take full courses on your own schedule
at your own pace from the comfort of
your own home, office or wherever
there is a broadband connection.
www.wra.org/ondemand
Real Estate Continuing Education
2007 / 2008 Real Estate Continuing
Education Course 2 & Course 4a
On Demand June 2007.
Courses 1 and 3 available fall 2007.
17
Education Course Schedule
Sales & Marketing Management Date
(This class is FREE for all Wisconsin CRS Members)
(Wisconsin CRS Members receive a $20 discount)
(1) Fee represents cost of the 4 modules, new WRA members receive a $40 discount.
w w w. w r a . o r g / C o u r s e S c h e d u l e
Course
QuickStart Module 1 & 2
Script Doctor
Ninja Selling II
QuickStart Module 3 & 4
October 4-5, 2007
October 18, 2007
October 19, 2007
November 1-2, 2007
Location
Madison
Neenah
Neenah
Madison
$
Courses at 2007 Convention: **does not include convention
GRI Course 2
September 22-25, 2007
Wisconsin Dells
CRS 201
**September 22-23, 2007
Wisconsin Dells
CRS 201 with convention
September 22-25,2007
Wisconsin Dells
CRB – Leading & Managing Teams
Wisconsin Dells
Intro to CCIM
Wisconsin Dells
ABR® – Buyer Agency
Wisconsin Dells
ABR® Elective – e-Buyer
**September 23, 2007
Wisconsin Dells
ABR® Elective – e-Buyer with convention
Wisconsin Dells
SRES – Seniors Real Estate Specialist
Wisconsin Dells
Appraisal continuing education modules available on VHS and DVD
Early Reg.
240 (1)
49
169
240 (1) $
Regular Reg.
240 (1)
59
179
240 (1)
$
ATD
270
79
199
270
Education
Thru 9/5 $350
$300
$370
$535
$335
$295
$174
$243
$445
After 9/5
$360
$310
$380
$545
$345
$305
$184
$253
$455
ATD
$380
$330
$400
$565
$365
$325
$204
$273
$475
Appraisal CE USPAP
September 25, 2007
Avoiding Standard Two Pitfalls-Residential October 11, 2007
Avoiding Standard Two Pitfalls Residential
October 12, 2007
2006 National USPAP November 5, 2007
2006 National USPAP
November 6, 207
2006 National USPAP November 7, 2007
The Adjustment Grid December 3, 2007
Disclosures, Addenda & Disclaimers to Appraisal Reports December 4, 2007
Valuations of Detrimental Conditions in Real Estate
December 6, 2007
Valuations of Detrimental Conditions in Real Estate
December 7, 2007
Real Estate Continuing Education Additional fees for non-members
Pre-license * Plus books
18
WI Dells
Madison Appleton Brookfield
Madison
Appleton
Pewaukee
Pewaukee
Madison
Appleton
Thru 9/5
154
109 v
109 v 140 v
140 v
140 v 109 v
109 v
109 v
109 v After 9/5
164
119
119
150
150
150
119
119
119
119
ATD
184
139 139
170 170
170
139
139
139
139
8:30 a.m. – 4:30 p.m.
Cost 2 weeks prior to class
Appraisal Section Member
receives $10 discount
v
Date
Course
Location
Time
September 18, 2007
2007-08 CE 1 & 2
Kenosha
8:30 – 4:30 p.m. 262-942-0592
September 19, 2007
September 23, 2007
September 24, 2007
September 25, 2007
September 26, 2007
September 27, 2007
October 4, 2007
October 9, 2007
October 12, 2007
October 16, 2007
October 17, 2007
October 18, 2007
October 18, 2007
October 19, 2007
October 25, 2007
October 25, 2007
October 25, 2007
October 26, 2007
2007-08 CE 4A & 3
2007-08 CE 1
2007-08 CE 2
2007-08 CE 3 & 4A
2007-08 CE 4A & 3
2007-08 CE 1
2007-08 CE 1 & 2
2007-08 CE 1 & 2
2007-08 CE 3 & 4A
2007-08 CE 1 & 2
2007-08 CE 1 & 2
2007-08 CE3 & 4A
2007-08 CE 1 & 2
2007-08 3 & 4A
2007-08 CE 2
2007-08 CE 1 & 2
2007-08 CE 1 & 2
2007-08 3 & 4A
Brookfield Wisconsin Dells
Wisconsin Dells
Wisconsin Dells
Madison
Racine
Brookfield Appleton Kenosha
Green Bay Madison
Manitowoc
Wausau
Wausau
Janesville
Ripon
Stevens Point
Stevens Point
8:30 – 4:30 p.m. 1:00 – 4:30 p.m. 1:00 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 4:30 p.m. 1:00 –- 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m.
8:30 – 4:30 p.m. 8:30 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 12:00 p.m. 8:30 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 4:30 p.m.
Milwaukee
Madison
Madison
Madison
8:00 – 5:00 p.m.
8:00 – 5:00 p.m.
8:00 – 5:00 p.m.
8:00 – 5:00 p.m.
Broker Pre-license
September 10-13; 17-20, 2007 Sales Pre-license
October 8-11, 2007
Broker Pre-license
November 5-8; 12-15, 2007 Sales Pre-license
Register #
800-279-1972 24/m; $32 nm
Register for Convention
800-279-1972 24/m; $32 nm
262-554-3940
800-279-1972 27/m; $35 nm
920-739-9108
262-942-0592
920-739-9108
800-279-1972 27/m; $35 nm
920-553-6227
800-279-1972 27/m; $35 nm
800-279-1972 27/m; $35 nm
608-755-4854
920-294-6850
800-279-1972 27/m; $35 nm
800-279-1972 27/m; $35 nm
255*
325*
255*
255*
255*
325*
255*
255*
265*
335*
265*
265*
news.wra.org
WRA Annual
Convention
Kalahari Resort & Convention Center, Wisconsin Dells
Opening Session
If You Can’t Stand Up, Stand Out
General Session
Becoming Preferred –
How to Outsell Your Competition
Monday, September 24, 2007 – 9:30 am
Speaker: Mike Schlappi
The only way you can predict your future is to
create it. Mike’s message is a personal story – a
story that began with a tragic shooting accident that evolved into a
lifetime of lessons and victories. Although Mike is paralyzed, his
dreams are not. Mike uses a media presentation and his Paralympic
medals to teach his “Bulletproof Principles for Success.”
Mike Schlappi, four-time Olympic medal winner and two-time World
Champion, has proven that just because you can't stand up, doesn't
mean you can't stand out. He is the only wheelchair basketball
player in the United States to compete in the past four Olympic
games in Seoul, Barcelona, Atlanta and Sydney. Mitt Romney, the
President and CEO of the 2002 Olympic Games said, "Mike's
accomplishments remind each of us of the power of the human spirit
to rise above all adversity. Mike truly walks his talk as he verbally
and visually inspires everyone to light the fire within.”
Checkout Designation Classes
at Convention!
ABR and ABR Electives, CCIM,
CRB, CRS, GRI, SRES
Broker Track Workshops:
• Creating a Self-Recruiting Office
• Technology and Recruiting
• Increase Your Listing Inventory
Tuesday, September 25, 2007 – 8:45 am
Speaker: Michael Vickers
This program uses state-of-the-art strategies and
tactics to give you competitive advantage and will help you outsell
or out-service the competition. It will help place you and your
company in the preferred position every time.
Michael Vickers is a popular speaker, entrepreneur, educator and
author. His dynamic, humorous and insightful sessions coach
thousands of professionals to grow individual and organizational
performance. Michael's unique gifts are his mastery of the art of
influence and his ability to translate that mastery into practical,
powerful techniques anyone can use. His sessions are educational,
entertaining, intimate and unabashed – he is hilarious in his stories,
boundless in his enthusiasm, and relentless in his message that
success is available to everyone!
$500 door prize will be awarded at the end of session – must be present
to win.
Sales Track Workshops:
Commercial Workshop:
• Critical Elements of Contact Management
Systems
• Moving Upward Regardless of Market
Conditions
• Business Planning and Team Building
• Common Pitfalls Involving Commercial
Real Estate
Technology Workshops:
Plus 30 Hot Topic Workshops:
Covering foreclosures (The Art of Selling
REO Properties), home staging, and A
Senior’s Guide to Moving and Downsizing
• ZipForm Made Easy
• Smart Phones and the Real Estate
Agent...A Good Combo
Visit the WRA Convention Web site for more information on courses, events and registration
www.wra.org/convention07
Kalahari Resort – Convention Site
1305 Kalahari Dr., Wisconsin Dells, WI 53965 (877) 253-5466 or (608) 253-5466
Overflow Hotels
Alakai Hotel & Suites
1030 Wisconsin Dells Parkway S.
Wisconsin Dells, WI 53965
608-253-3803 or 800-593-9392
Baker’s Sunset Bay Resort
921 Canyon Road
800-435-6515
Ho-Chunk Casino & Hotel
S3214 Highway 12
Baraboo, WI 53913
Rate: $85 9/22-24 release:9/15/07
800-746-2486 or 608-356-6210
Holiday Inn Express
(formerly Camelot Hotel & Suites)
608-253-3000 or 888-946-3000
Ramada Limited of Wisconsin Dells
800-845-2251 or 608-254-2218
19
nn
u
0
7
A
Registration
n
o
W
ALTORS ® As
in RE
so
s
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on
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Co
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Septembe
WRA Convention 007
WRA MEMBER
 1-Day [Monday / Tuesday ] circle one
 Full Convention
 Unlicensed Spouse/Guest
1305 Kalahari Dr.
(877) 253-5466 or (608) 253-5466
 1-Day [Monday / Tuesday ] circle one
 Full Convention Designation Courses
September 22 - 25, 2007 (includes convention, except*)
 GRI Course 2 (9/22 – 9/25)
CRS 201 Only (9/22 – 9/23)*
CRS 201 w/convention (9/22 – 9/25)
CRB – Leading & Managing Teams CCIM – Intro to Commercial Investment RE ABR – Buyer Agency
 ABR Elective – E-Buyer Course*
 ABR Elective – E-Buyer Course w/convention
 SRES – Seniors Real Estate Specialist (ABR Elec.)
HP10BII Calculator
 Calculator will be held for pickup at class; or
 Add $7.50 if you want calculator to be shipped
$340
$350
$290
$300
$360
$370
$525
$535
$325
$335
$285
$295
$164
$174
$233
$243
$435
$445
$35 (includes tax)
$360
$310
$380
$545
$345
$305
$184
$253
$455
$380
$330
$400
$565
$365
$325
$204
$273
$475
$94
$114
$30
$114
$134
$50
$104
$144
$114
$154
$124
$164
$144
$184
CONTACT INFORMATION
Name_ _____________________________________________
Firm Name_ __________________________________________
Address_ ____________________________________________
City_ ________________________ State____________Zip_______
Phone (O) (
)_________________________
Phone (H) (
)_ ________________________
E-mail Address_ ________________________________________
WRA account #_________________________________________
 Check here if you are an Executive Officer
7 Hour USPAP Update/Fees include USPAP book
$134
$144
$144
$154
$154
$164
$174
$184
$144
$154
$154
$164
$164
$174
$184
$194
$154
$164
$164
$174
$174
$184
$194
$204
Real Estate CE Courses
Check the courses you want to attend. Price included in registration. (limited seating)
 CE1 | 9/23, 1:00 pm  CE2 | 9/24, 1:00 pm  CE3 | 9/25, 8:30 am  CE4A | 9/25, 1:00 pm
ticketed events
 CRS/CRB Luncheon (9/25)............$20
 Golf at Trappers Turn (9/23)...........$90
 Chairman of the Board’s Dinner (9/24)....................$45
 Basic Beading Techniques to Create Jewelry (9/24, 1:00 pm).. $30 (20 class limit)
 Basic Chain Maille Jewelry Techniques (9/24, 2:45 pm)......... $40 (20 class limit)
20
$84
$104
$30
NON - MEMBER
Room rates and overflow hotel information on page 9.
Appraisal Section USPAP Class Only
USPAP w/convention Appraisal REALTOR®
USPAP Class Only USPAP w/convention Appraisal Non-member
USPAP Class Only USPAP w/convention $74
$94
$30
Thru 9/5 After 9/5 ATD
Name of Spouse/Guest_____________________________________________
Kalahari Resort – Convention Site
appraisal Course
Thru 8/15
PAYMENT
 Enclosed is my check made payable to the WRA_ _ Charge my VISA/Master-
Card (circle one)
Card Number__________________________________________
Exp. Date_______________
 Special Services:
Check here if you require special services to attend.
Attach a written description of needs.
CANCELLATION POLICY: The WRA reserves the right to cancel courses if not filled.
Cancellations must be made in writing prior to the start of the course and will be refunded,
minus a $25 administrative fee. Registrations cannot be transferred from person to person.
Register by Mail:
Wisconsin REALTORs® Association
4801 Forest Run Road, Suite 201
Madison, WI 53704-7337
Register by Phone: 800.279.1972 | 608.241.2047
Register by Fax: 608.241.5168
Online Registration: www.wra.org/convention07
news.wra.org
Technology
Corner
The REALTOR’S® Guide to PC Security
Y
ou lock your car.
You
lock-box
your properties.
So why aren’t you
locking down your
computer? I don’t
mean installing an
actual lock to prevent
By Rick Broida
theft (though that’s
always a good idea, especially if you use
a notebook), but rather protecting your
machine from adware, spyware, viruses,
and other maladies of modern computing.
The “locks” you need for this kind of
protection come in the form of security
software. You can get what you need
without spending a fortune (or even a
dime), but make sure to cover all the bases.
Many users make the mistake, for instance,
of thinking an anti-virus program will protect
them from spyware. It won’t.
IDENTIFYING THE THREATS
Just what the heck is spyware? And
phishing? And a firewall? Before you can
take steps to protect yourself, you need to
understand your enemies – and the tools
that fight them. Here’s a quick glossary of
key security terms:
Adware
This is advertising-supported software that
automatically plays, displays, or downloads
advertising material to a computer after
the software is installed on it or while the
application is being used. It’s mostly an
annoyance, except when it crosses into the
realm of spyware, in which case it tries to
gather information about your activities.
Phishing
An attempt by criminals to obtain sensitive
information – usernames, passwords, creditcard numbers, Social Security numbers, etc.
– by masquerading as a legitimate entity,
such as a bank or well-known Web site (like
eBay or PayPal).
Spam
Junk e-mail. Initially just an annoyance,
spam is now also a security concern, as
most phishing attempts are conveyed via
e-mail.
Spyware
Currently the Web’s most serious security
problem, spyware is software that gets
installed without your knowledge. It’s
designed to intercept or take partial control
over your interaction with the computer.
These programs can collect various types of
personal information, but can also interfere
with the computer in other ways, such as
installing additional software, redirecting
Web browser activity, and making the
system run like molasses.
Virus
A computer program that can copy
itself and infect a computer without your
permission or knowledge. Some viruses are
programmed to damage programs, delete
files, or even reformat the hard drive.
CHOOSING SECURITY SOFTWARE
To fully protect your PC, you need the
following items: an anti-virus program, an
anti-spyware program, anti-phishing tools,
and a firewall. There are software suites
that provide all these tools under one roof,
which is a fine way to go. If you’re looking
to save a few bucks, however, consider the
following programs, all of which are free
and fully capable.
Ad-Aware 2007
(www.lavasoftusa.com)
Widely regarded as one of the best spywareremoval tools on the planet, Ad-Aware can
clean most, if not all, the gunk from your PC.
The free version offers spyware scanning
and removal, but you have to activate it
yourself; the $26.95 Plus version provides
real-time scanning and will automatically
update itself with the latest threat data.
AVG Anti-Virus Free Edition
(free.grisoft.com)
Why shell out big bucks for security
software when you can get free software
that accomplishes the same thing? AVG
Anti-Virus offers free protection from and
removal of viruses. While you’re at it, grab
AVG Anti-Spyware Free and AVG AntiRootkit free. What’s the catch with all these
freebies? Technical support is available
only with the paid versions.
Blink Personal Edition
(tinyurl.com/ztslf)
This full-fledged security suite promises total
protection from viruses, spyware, phishing,
and other Internet nastiness. As of press
time, the developer was offering a free oneyear subscription for personal and homeoffice use.
TrendSecure TrendProtect
(tinyurl.com/2xz7vu)
This browser plug-in (available for Firefox
and Internet Explorer) analyzes the Web
pages you view and alerts you if it detects
anything malicious. It also analyzes Google,
MSN, and Yahoo search results, flagging
each link with a familiar red-light/greenlight color code. You can mouse over any
link to see more information. TrendProtect
is like an extra layer of protection on top of
the browsers’ own tools, and it’s available
free of charge.
One last tip: Make sure you don’t overlap
your protection. For example, don’t run
two anti-virus or anti-spyware utilities at
the same time; that can actually create
problems instead of solving them. To find
out more about security software and how
to use it, visit Download.com’s Security
Center (tinyurl.com/lwkmh) and PC World
Spyware & Security (tinyurl.com/jddo2).
Tech guru Rick Broida writes for CNET and PC Magazine. He is the
author of over a dozen books, including How to Do Everything with
Your Palm Powered Handheld, 6th Edition.
21
Public Affairs
The Wisconsin Way Project
By Michael Theo and Jim Wood
T
he
Wisconsin
REALTORS®
Association (WRA) has joined with
the Wisconsin Counties Association
(Counties Assocation), the Wisconsin
Builders
Association,
the
Wisconsin
Education Association Council and others in
an unprecedented statewide effort dedicated
to achieving significant and permanent
reductions in the amount of property taxes
Wisconsin property owners pay each year
while, at the same time, protecting the
services that help ensure our state’s unique
quality of life.
The project is timely because it needs to be
done and because it can be done. It needs to
be done because we need to change how we
fund local services. In-depth market research
conducted over the past two and a half years
by the WRA, the Counties Association, Wood
Communications Group and the League of
Wisconsin Municipalities reveals significant
demand for, satisfaction with and support
for local services, including K-12 public
education. But, the research also identified
three serious concerns that affect the way in
which Wisconsin currently funds its local
services.
First, there is growing concern about the
public’s ability to pay for the services they
want. Most Wisconsin citizens believe, for
example, that they are considerably more
financially strapped than they were even a
few years ago. Three years ago, a little more
than half said they had less money at the end
of each month than they had had the previous
year. Today, three-fourths say they have less.
Second, the public is increasingly skeptical
about the true progressivism of property
taxes. Significant majorities of the public in
numerous polls indicated, for example, that
they thought property taxes were the most
unfair tax people had to pay, were based on
inflated property values, often did not reflect
22
people’s ability to pay and affected elderly
people more adversely than others.
And third, while most people do not believe
that we are spending too much money on
local services, they do believe that local
governments and school districts could
deliver services more effectively. In most
cases, taxpayers believe that government is
spending the right amount or not enough
money, rather than spending too much money
on most services. In addition, a clear majority
of taxpayers think local government is doing a
good job of holding the line on taxes and still
delivering services, but most also believe that
significant cost-savings are still available and
that governments could do more with less.
In short, the data suggests that the real
issues in governmental finance are not the
appropriateness of current spending levels,
but: a) the affordability of the taxes; b) the
cost-effectiveness of the service delivery; c)
questions about whether or not the appropriate
governmental entity is in charge of delivering
and paying for the service; and, d) concerns
about the actual progressivism of the taxes
being levied to fund the services.
This effort is particularly timely because there
is growing public awareness that the property
tax is a failed funding mechanism and that
Wisconsin needs to explore other options. The
polls indicate that the public knows or senses
it. The media is coming to the same conclusion,
and a growing number of legislators are
looking for a more productive strategy than
the Taxpayer Bill of Rights (TABOR). Perhaps
most importantly, the public is interested in
finding alternative methods for financing local
public services, including K-12 education.
There is a growing realization that the
failure to identify and market alternative
approaches to financing local government
services will inevitably result in either higher
property taxes or lower levels of service. The
public’s willingness to entertain new ideas
and approaches to financing governmental
services makes the search for better ways to
manage and finance governmental services
the single most important challenge we, as
citizens, now face.
This effort will take time. We have to engage
the public in a discussion that focuses
on alternative financing as a thoughtful,
responsible, credible approach to a significant
public policy issue. Out of that public
dialogue we believe we can build a strong
statewide base of understanding and support
for alternative financing proposals that are
realistic and equitable.
To these ends, the project will organize a
carefully coordinated series of “town hall
meetings” in as many major media markets
as possible over the next six months to talk
about the issues, identify elements in the
current financing and service delivery system
that need to change, and suggest possible new
approaches to address the challenges. At the
end of, and based on, that process, a “citizens
agenda for change” will be developed, and
a smaller number of regional “town hall
meetings” will be held to review and refine the
agenda. That process will generate a formal
set of proposals that we will then concentrate
on making one of the major focal points of the
dialogue between citizens and their elected
officials during the 2008 electoral process.
Why REALTORS® Support
the Wisconsin Way Project
Wisconsin’s tax system is over-reliant
on property taxes to fund vital services
and infrastructure. From a REALTORS®’
perspective, this creates two problems. First,
it hurts Wisconsin families and businesses by
making housing less affordable – especially
regrettable for young families trying to buy
news.wra.org
Public Affairs
their first home and elderly families trying
to stay in their homes – and by significantly
increasing operational costs for Wisconsin
businesses.
Secondly, high property taxes pit property
owners against the very public services and
investments they support, like good schools,
good roads, good police and fire protection,
and good technical colleges.
These two problems are not little irritants but
rather major tribulations that directly impact
our quality of life in Wisconsin. That’s why we
need to change the way we fund our state’s
essential services and infrastructure.
Wisconsin REALTORS® have been at the
vortex of these issues for decades because
real estate markets rely on far more than nice
structures. They depend on the quality of life
of a neighborhood, a community, a region and
the state. This “context” within which real
estate markets soar or suffer means we must
care about all the inputs that determine our
quality of life. This means balancing seemingly
contradictory priorities like providing vital
government services, including schools, with
the taxpayers’ ability to pay. This means
protecting both the environment and private
property rights. And this means growing our
state economy and, with it, our job and tax
bases, while having an adequate and equitable
tax system. We firmly believe that while it is
difficult, finding the right balance of these
priorities is possible.
Take schools for example. No one cares more
about having a great school system than
REALTORS®. A quality school is essential to a
desirable neighborhood, which is a prerequisite
to good housing. Indeed, the first question
most homebuyers ask REALTORS® relates to
the quality of the school district. Conversely,
without desirable and affordable housing,
neighborhoods can quickly deteriorate
and, often with them, their schools. Thus to
REALTORS®, good schools and good real estate
markets are one and the same. But because
schools make up the majority of Wisconsin’s
sizable property tax bills, homeowners are
currently confronted with having to choose
between their desire for excellent schools and
their desire for affordable taxes on their homes
and businesses. It shouldn’t be that way.
This is why REALTORS® support the
Wisconsin Way project. We are pleased to join
organizations like builders, teachers, county
officials, transportation interests and others in
search of a significant and permanent reduction
in the amount of property taxes Wisconsin
homeowners and property owners pay each
year, while at the same time protecting and
providing for essential government services
and infrastructure.
We fully understand the difficult policy
choices this endeavor will eventually entail.
We may have to consider new revenues
to replace property taxes and new ways
to limit government spending and make it
more efficient. But every successful journey
begins with a first step. The first step of this
journey was our mutual recognition that our
current property tax-dependent system is
unsustainable. Our next steps will be to engage
the public in a meaningful dialogue about the
problem and potential solutions. And our final
steps will be to design, propose and promote
a solution.
A strong and growing real estate market
is a prerequisite to the well being of both
Wisconsin families and the economy. Indeed,
our quality of life is fundamentally defined
by the homes we live in and the jobs and
economy in which we work. And so our
public policies related to real estate markets
– be they residential, commercial, industrial
or agricultural properties – have a direct and
significant impact on our quality of life in
Wisconsin. Changing our current over-reliance
on property taxes will not only promote
property ownership and protect property
owners, it will also do more to protect and
promote Wisconsin’s unique quality of life.
We’re eager to get started.
Editor’s Note: Jim Wood is president of Wood
Communications Group, a longtime public
affairs consultant to the WRA and partner in the
Wisconsin Way Project.
Michael Theo is Vice President of Legal and Public
Affairs for the WRA.
The Wisconsin Way project will host 12 public
forums throughout the state this fall to solicit
public opinion regarding the problems and
proposed solutions for insuring both affordable property taxes and desireable public
services. Additional details will be provided
for each in the near future. All REALTORS®
are encouraged to attend these forums and
make your views known.
La Crosse –
Wednesday, October 10
Wausau –
Monday, October 15
Eau Claire
–
Thursday, October 18
Appleton –
Monday, October 22
Green Bay –
Tuesday, October 30
Superior –
Thursday, November 1
Oshkosh –
Tuesday, November 6
Waukesha –
Janesville Thursday, November 8
–
Tuesday, November 13
Milwaukee –
Tuesday, November 27
Kenosha –
Tuesday, December 4
Madison –
Thursday, December 6
23
Public Affairs
Four Cases Important to REALTORS®
O
By Tom Larson
ver the next nine months, the Wisconsin
Supreme Court will hear several cases
that are important to property owners
and the real estate industry. These cases involve
legal issues ranging from economic development
to property tax records to the constitutionality
of zoning ordinances. Because the Court’s
decisions in these cases could have a direct
impact on the state’s real estate industry, the
Wisconsin REALTORS® Association has filed
an amicus (“friend of the court”) brief in each of
these cases. An amicus brief allows the WRA to
communicate with the court on various issues
without taking sides in the particular case.
Economic Development Corporations
Subject to Open Meetings/Records Laws
In State v. Beaver Dam Area Development
Corporation, the Wisconsin Supreme Court
will decide whether the Beaver Dam Area
Development Corporation (BDADC), a nonprofit corporation organized as a private entity to
promote business development around the city of
Beaver Dam, is a quasi-government entity that is
subject to open meetings and records laws. The
primary responsibility of EDCs is to attract private
companies and new economic development
opportunities to their respective communities.
The communications between the EDC and
private companies are often confidential so that
competitors are not aware of the companies’
future plans.
Like other economic development corporations
(EDC), the BDADC is (a) comprised of a majority
of private citizens (business owners, bankers, real
estate professionals, etc.), with one or two local
government officials serving as board members,
but who have no voting authority on EDC matters;
(b) funded primarily by the private sector; and (c)
contract with both public and private entities to
provide economic development services.
24
Why This Case is Important – If EDCs are subject to
the open meetings and open records laws, private
companies would be reluctant to work with EDCs
and may be less likely to locate in Wisconsin. This
could have a devastating impact on jobs and our
local economies.
Applying Open Records Law to Property
Assessment Records
In WIREdata, Inc. v. Village of Sussex, et al,
WIREdata, a wholly owned subsidiary of the
Multiple Listing Service, Inc., requested property
assessment records from several communities
for purposes of sharing the information with
members of the MLS. Independent contractors who
maintained the files electronically in a computer
database performed the assessments in each of these
communities. The assessor denied WIREdata’s
requests and indicated that WIREdata could (a)
purchase the records for lump sum payment of
$6,000 plus additional costs for each property
identified and placed restrictions on WIREdata’s
use of the data, or (b) receive the records in a PDF
format. WIREdata sued the communities and their
assessors claiming violations of Wisconsin’s open
records law.
Why This Case is Important – The ability to obtain
public records and property-related data in a
usable format from local units of government is
important to REALTORS® and other members of
the real estate industry, who provide consumers
with information about the costs associated with
owning real estate.
Application of the Economic Loss Doctrine
to Residential Real Estate
In Below v. Norton, a buyer discovered after
she moved into her home that the sewer line
between her home and the street was broken. The
seller had represented no plumbing defects on
the real estate condition report. The buyer filed
a lawsuit, alleging, among other things, that the
news.wra.org
Public Affairs
seller had engaged in intentional misrepresentation, negligent
misrepresentation, and misrepresentation in advertising. The trial
court dismissed all the misrepresentation claims based upon the
“economic loss doctrine,” which prohibits parties from receiving
damages for misrepresentation claims unless such damages were
specifically agreed to in the contract between the parties.
Why This Case is Important – Application of the economic loss
doctrine to residential offers to purchase would substantially limit
the remedies available to most parties. This may lead to more
parties misrepresenting defects, an increased need for inspections
and testing, increased costs for homebuyers, and increased
expectations for real estate brokers.
Ripeness of Declaratory Judgment Actions
In Walter Olson v. Town of Cottage Grove, the town of Cottage
Grove enacted a zoning ordinance that establishes a communitywide transfer of development rights (TDR) program. The town
conditioned its approval of Walter Olson’s subdivision plat upon
the condition that Olson purchase and transfer 10 development
rights to the town and county. This would require Olson to
purchase 350 acres of farmland at a cost of approximately $750,000.
Olson filed a declaratory judgment action against the town,
asking the court to invalidate the TDR ordinance on constitutional
grounds. The circuit court ruled that Olson had not yet incurred
any financial injury and, therefore, his case was not yet ripe for
review. The court of appeals rejected the circuit court’s ruling,
holding that a property owner can test the validity of an ordinance
prior to incurring an injury.
Why This Case is Important – If property owners do not have the
ability to ask a court to determine whether an ordinance is legal or
constitutional before submitting a formal development proposal
to the community and having it formally rejected, property
owners will be required to waste considerable time and money
in preparing development proposals just to determine their rights
under zoning ordinances and other land-use regulations.
For more information on these or other cases, please contact Tom
Larson (tlarson@wra.org) at (608) 212-0066. Tom Larson is Director of
Regulatory and Legislative Affairs for the WRA.
25
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Public Affairs
Kagen vs. Gard
By jOE mURRAY
I
n one of the most expensive, bitter
and highly competitive congressional
races last November, political
newcomer Steve Kagen (D) of Appleton
defeated former Wisconsin Assembly
Speaker John Gard (R) of Peshtigo in the
open Northeast Wisconsin congressional
district, which includes all or parts of 14
counties.
end up a “top-tier” contest for both sides
due to several political factors, including:
In the November 2006 general election,
Kagen defeated Gard 51 percent to 49
percent – a margin of 5,948 votes – to win
the seat for Democrats.
John Gard also raised a record amount
in his 2006 campaign. However, Gard no
longer holds public office and, having
lost the first contest, he will likely find
fundraising for a rematch with Kagen to
be more difficult than in 2006.
At this point it looks certain that former
Speaker Gard is gearing up for another
run against Kagen in 2008. The 8th
District, which includes Green Bay and
Appleton, leans toward the Republican
side, but can be quite competitive.
Tommy Thompson, Mark Neumann and
George W. Bush carried this District by
comfortable margins. And Mark Green,
who represented the District from 1998
to 2006, carried the 8th District without
breaking a sweat. Steve Kagen had the
good fortune of running in a bad year for
the GOP.
But Kagen is now an incumbent member of
Congress in the majority party. By the time
voters head to the polls in 2008, the firstterm Democrat will have campaigned on
his voting record that, we should assume,
will include important votes on key issues
that reflect the political leanings of the 8th
District. Either way, this race will likely
28
• As the incumbent, Steve Kagen will be
able to raise far more money in 2007 and
2008 than he did in his first race. In his
2006 campaign, Kagen largely self funded
his own election. He finished June with
$337,000 in his campaign account, and his
fundraising operation is up and running
for 2008.
• Kagen’s incumbency will be running up
against the electoral history of the 8th
District. Including Kagen, the 8th District
has elected a Democrat for Congress only
six times, and only one of these winners
(Robert J. Cornell, 1974-1978) served more
than one term. This District has a habit of
electing Republicans and Gard, running
in a highly toxic political environment for
Republicans in 2006, nearly won anyway.
Kagen can win in 2008, but he will be
swimming against historical currents.
• Kagen had the good fortune of running
against embattled President George
W. Bush, a very unpopular war and a
Republican Congress that was knee-deep in
one scandal after another. This time Kagen
will have to defend the work product of
a Democrat-controlled Congress and his
votes on numerous controversial issues.
Kagen will have to run on his record, and
Gard (or any other Republican challenger)
will be sure to highlight those votes that
seem contrary to the political leanings of
the 8th District.
Gard will once again have to defend the
votes he took on all kinds of issues over
his long tenure in the state Assembly, and
some Kagen insiders relish a rematch with
the well defined political style of John
Gard.
• Wisconsin is a highly competitive state in
presidential races, and the 8th District is a
major battleground in both sides’ efforts
to carry the state. Lots of money will be
spent to identify and turn out voters in
November 2008.A larger voter turnout
could work more favorably for Gard this
time around given the voting history of the
District.
Perhaps the best way to view this upcoming
rematch was stated by Stuart Rothenberg,
editor and publisher of the nonpartisan
Rothenberg Political Report. “Until Gard
officially gets in and we see the residual
effects of the 2006 race, Kagen deserves
to be favored. But it has the potential to
develop into a top-tier contest, and a real
Democratic headache.”
Well said. Stay tuned.
Joe Murray is Director of Political and
Governmental Affairs for the WRA.
news.wra.org
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For a limited time in select rural Wisconsin counties WHEDA® has grant assistance available for 50 WHEDA
Home Loans to help cover down payment, closing costs, home buyer education, and counseling expenses.
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legal education - Wisconsin REALTORS® Association

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