Financial Readiness: Are You Prepared? - Maryland ...

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Financial Readiness: Are You Prepared?Unlocking the vast resources available from NAR

VOLUME LIV NUMBER 6 / OCTOBER / NOVEMBER 2020

26 ADA Compliance: What to Know

12 Statewide Forms Update

28 What’s Up with Commercial?

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www.mdrealtor.org MARYLAND REALTOR® OCTOBER / NOVEMBER 2020 1

COMMERCIAL REAL ESTATE

FEATURESFINANCIAL READINESS FOR REALTORS® 8

STATEWIDE FORMS UPDATE 12

SPECIAL SECTION: NAR AFFILIATES 18

DEPARTMENTSPRESIDENT’S PERSPECTIVE 4

COVID HEROES 6

EVENTS UPDATE 24

HOTLINE: ADA COMPLIANCE 26

RPAC UPDATE 27

COMMERCIAL REAL ESTATE 28

HOUSING 30

CEO CORNER 31

BRIGHT MLS 32

2812STATEWIDE FORMS EVENTS UPDATE

24

FINANCIAL READINESS8

2020 Maryland REALTORS®

Leadership Team

Dee Dee MillerPresidentLong & Foster Real Estate541B Baltimore Annapolis BoulevardSeverna Park, MD [email protected]

Craig WolfPresident-ElectAmerican Home Shield907 Autumn View CourtBel Air, MD [email protected]

Dale RossTreasurerPioneer Realty, Inc.7917 Declaration LanePotomac, MD [email protected]

John A. HarrisonImmediate Past PresidentRE/MAX Executive8432 Veterans Highway, Suite AMillersville, MD [email protected]

Chuck Kasky, RCEChief Executive OfficerMaryland REALTORS®

200 Harry S Truman Parkway, Suite 200Annapolis, MD [email protected]

Maryland REALTORS®

200 Harry S Truman Parkway | Suite 200Annapolis, MD 21401-7348

443.716.3500 | www.mdrealtor.org

Leadership TeamDee Dee Miller | PresidentCraig Wolf | President-Elect

Dale Ross | TreasurerYolanda Muckle | Secretary

John A. Harrison | Immediate Past PresidentChuck Kasky, RCE | Chief Executive Officer

EditorDaniel Patrell | [email protected]

Advisory CommitteeMarilyn Rhodovi | Chair

Amanda Smith | Vice Chair

AdvertisingArlene Braithwaite | 410.772.0820

Publication DesignHBP, Inc., 952 Frederick Street, Hagerstown, MD 21741

800.638.3508 | www.hbp.com

Mission StatementMaryland REALTORS® exists to support all segments of its membership and their specialties. Maryland REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®:■ Develops and delivers programs, services and related products

that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners;

■ Assists members in ethically and professionally serving the public;■ Promotes and preserves the right to own, transfer and use real

property; and■ Protects the right of members to conduct business within a

framework of fair and reasonable laws and government regulations.

In principle and in practice, Maryland REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.

Maryland REALTOR® (USPS 0016-017) is published bimonthly by Maryland REALTORS®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348.Member subscriptions of $3.81 are paid with annual dues.This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of Maryland REALTORS®.Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request.While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2020 Maryland REALTORS®, Inc.

®REALTORS

Yolanda MuckleSecretaryLong & Foster Real Estate12220 Central Ave.Mitchellville, MD [email protected]

2 MARYLAND REALTOR® OCTOBER / NOVEMBER 2020 www.mdrealtor.org

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President’s Perspective B Y D E E D E E M I L L E R

Celebrating the Resiliency of our Members


Sometimes I wonder if Charles Dickens wrote, “It was the best of times, it was the worst of times,” with a nod toward the world of real estate in 2020.

COVID-19 has changed our society and our relationships at the granular level and yet when you look at housing statistics, sales continue to outpace expectations. Real estate has proven to be a significant driver of the economic recovery from the pandemic.

I want to give a shout out to my predecessor as Maryland REALTORS® President, John A. Harrison, for his leadership and stewardship of the association during

these strange times. He didn’t ask for this pandemic (who did?), but his guidance and the efforts of our dedicated Maryland REALTORS® staff, leadership team, and Brokers have helped all of us to persevere, stay resilient, and remain focused on the clients we serve. Thank you, John, and thank you, Maryland REALTORS®.

If this era has proven anything, it is that we will find ways to work efficiently and collaboratively, even when we’re restrained from meeting in person. Technology has emerged to fill many gaps. Perhaps we roll our eyes at the number of Zoom meetings, but this form of communication has helped us to stay the course.

Online meetings are here to stay, even after COVID-19 fades away. Technology will help to unite us. Maryland may not be a large state, but it’s quite an effort for our

friends in Western Maryland, the Lower Eastern Shore, Southern Maryland, and more to join a face-to-face meeting. Now, through technology, that travel barrier is no longer an impediment to participation. As president, it will be one of my goals to encourage more volunteer efforts across the state because meetings can now be hybrid: a combination of face-to-face and online.

“Meeting Tech” will strengthen the already tight bonds between the state and local boards. During my term, these bonds will only grow stronger. I look forward to working with the regional leadership in whatever form works best—online, hybrid, or face-to-face.

My primary initiative for the year is financial readiness. Are you financially prepared to take on the ups and downs of this kind of work? What plans have you put in place for budgeting? Retirement? Does your business have a succession plan for when you retire? The National Association of REALTORS® has published impressive resources at www.FinancialWellness.realtor, and you will find me throughout this year, encouraging our members to utilize these resources provided generously by NAR. This issue of Maryland REALTOR® magazine has an important story about financial readiness and the tools available to you as a member. On February 4, I will host the first of several financial readiness webinars for our members. Look for more details soon, from Maryland REALTORS®. For your future, you will want to attend.

The year 2020? Yes, it has been tough—brutal, even—but we’ve proven that success can come with resiliency. As we move forward into 2021, we know that we’re stronger together, bound by a shared commitment to this industry, delivered with help from the latest technology, and focused on excellence for the buyers and sellers we serve.

As president, one of my goals is to encourage more volunteer efforts across the state because meetings can now be a combination of face-to-face and online.

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Maryland REALTORS® would like to recognize the many REALTORS® who are helping their community in fighting the coronavirus pandemic. Thank you for all you do! If you know of a REALTOR® who is helping her or his community and supporting first-responders and healthcare workers, please send the story and an image of the REALTOR® to [email protected], with “COVID-19 Heroes” in the subject line. We may share the story in Maryland REALTOR® magazine or in our social media!

IN THE FIGHT AGAINST COVID-19HEROESHistoric Highlands Association of REALTORS® (HHAR)

Members of HHAR came together to make a difference in Western Maryland. From the contributions of several members, the association purchased lunch from several local restaurants to serve 300 healthcare and frontline staff employed in Allegany County.

“It was important to our REALTOR® members to demonstrate how truly grateful we are to the healthcare workers within our community who work tirelessly to keep our community safe during this pandemic,” said Christa McGee, HHAR Association Executive.

HHAR’s public relations committee, chaired by Elizabeth Hobel, and several volunteers delivered the meals. “The response among the staff at each facility was truly heartwarming,” said Steve MacGray, HHAR President.

Howard County Association of REALTORS® (HCAR)Since the start of the pandemic, HCAR’s outreach effort, HCAR Cares, has worked tirelessly within its community. To date, here are some of HCAR Cares’ accomplishments:

HCAR awarded $6,000 through its “In This Together Fund,” to

Top, left to right: Staffers from the UPMC COVID Unit, Andy Linthicum, Tim Brinkman, and Steve MacGray. Middle: The Sterling Nursing Center welcomes HHAR meals, with Steve MacGray. Bottom, left to right: Staff member from Cumberland Nursing Home, Steve MacGray, Elizabeth Hobel, Cindy Diamond, Jamie McGreevy, and Christa McGee.

Top, left to right: Columbia Community Cares Founder Erika Strauss-Chavaria, HCAR Affiliate Don Hott of Moyer & Sons Moving Company, HCAR Cares President Donna Weaver, HCAR Affiliate & Board Member Alan Grubb of 4U Inspection Services, a representative of Moyer & Sons Moving Company, and HCAR CEO Jessica Coates. Middle: HCAR Cares President Donna Weaver and HCAR CEO Jessica Coates present a check for the “In This Together Awards.” Bottom: HCAR Cares President Donna Weaver presents a check to a representative of Columbia Community Cares.


provide financial assistance to organizations, businesses, and individuals who are struggling due to the pandemic. This crucial assistance is used to pay family utility bills, buy groceries, help keep people employed, further the work of local charitable organizations, and more.

Another $3,200 was awarded to additional local organizations, to help with the community.

HCAR recently started the “Make A Senior Smile” initiative to send notes, cards, and drawings for local senior citizens who could not receive visitors due to the pandemic. The initiative collected and distributed 400 cards (many designed by children artists!).

At its annual Member Appreciation Week, HCAR collected donations from members (diapers, baby wipes, and household cleaning products) for Columbia Community Care, a new organization that provides food and supplies to families in need due to the pandemic.

Greater Capital Area Association of REALTORS® (GCAAR)

Our friends at GCAAR recently launched the GCAAR Cares Emergency Relief Program. This program is unique as it focuses on GCAAR members and staff who have experienced financial

hardship because they or a family member have contracted COVID-19. While the program is still in its infancy, it already has a testimonial from one member about how the program has made a difference in her family.

To find out more about this program, visit https://gcaar.com/emergencyrelief.

RE/MAX Elite ServicesNurit Coombe, owner of RE/MAX Elite Services, may be a force of nature when it comes to caring for her community in Montgomery County. Here is a small—and incomplete—list of the ways Nurit and her team have reached out to those in need:

■ Fifty N95 masks and 500 surgical masks were donated to those in need. Due to an overwhelming response Nurit picked up an additional 700 masks, which are being distributed currently.

■ As a thank-you to frontline workers, Nurit and her team provided free pizzas to the crews at Trader Joe’s, Giant, and Potomac Disposal.

■ To give the community a sense of fun, Nurit has held rounds of “Zoom Bingo,” with cash prizes. Her last session drew more than 300 participants.

■ Nurit has started a “Coffee & Conversations” series with various guest speakers, from healthcare professionals, to baking, to mindfulness.

■ Nurit publishes a weekly newsletter, Silver Lining, filled with information about making social distancing a more positive experience.

Top, left to right: two representatives from the Washington Suburban Sanitary Commission; Brenda Trammelle, Agent; Nurit Coombe, Owner, ReMax Elite Services; and Meaghan Miller, Agent. Bottom, left to right: Netta Nathaniel, Larger Than Life USA; Nurit Coombe, Owner, ReMax Elite Services, and Jenny Atkins, ReMax Elite Services Director of Operations.


Get in Financial Shape!TAKE ADVANTAGE OF RESOURCES PROVIDED BY THE NATIONAL ASSOCIATION OF REALTORS®

While a career in real estate can be a rewarding profession—both personally and financially—the entrepreneurial nature of the work comes

with its own rules. To succeed, REALTORS® not only have to excel at their trade, they also have to excel at something that the National Association of REALTORS® (NAR) call “Financial Wellness.”

Maryland REALTORS®’ President, Dee Dee Miller, has made Financial Wellness one of her priorities. Do you have a budget in place? Are you planning for retirement? What succession plans do you have in place? Throughout 2021, Miller will be working with our members to help them get a leg up on their financial readiness. Mark your calendar now for February 4, 2021, for Miller’s first Financial Wellness Webinar for members of Maryland REALTORS®.

And between now and then, spend some time with NAR, at its Center for REALTOR® Financial Wellness. Now is the perfect time to plan for tomorrow. Visit www.FinancialWellness.realtor today to learn more, catch up on recorded webinars and access information that will help you build a better tomorrow.

Following the webinar information, below, please review the Emergency Guide provided by the Center for REALTOR® Financial Wellness for Money Saving Tips, Tips for Wellbeing, and a checklist to begin your journey.

REGISTER FOR THESE WEBINARSOctober 7, 2020 FINANCIAL WELLNESS LIVE: VIRTUAL EDITIONCost: $20. Register: http://bit.ly/NAR-FW

February 4, 2021 FINANCIAL WELLNESS WITH MARYLAND REALTORS® PRESIDENT DEE DEE MILLERNo cost. Register: http://bit.ly/MR-FinancialWellness

NAR has a collection of recorded webinars on all sorts of topics, from real estate investing, to dealing with debt, to improving your financial health. Find them at: http://bit.ly/NAR-FWWebinars.

The National Association of REALTORS® and Center for REALTOR® Financial Wellness are here for you with information and resources to help you get through challenging times. For even more tips and information, visit FinancialWellness.realtor today!

Most economists suggest putting aside 3-6 months of living expenses. Even forthose with healthy reserves, monitor your investment accounts and continue to save.

HAVE AN EMERGENCY FUND

Consider cutting back on non-critical spending, and keeping those cost savings in place for a while to help build up your reserves. Make consistent, timely payments to help maintain a good credit score. Visit FinancialWellness.realtorfor a FREE monthly budget spreadsheet.

TRACK YOUR SPENDING

It’s a good idea to have a couple hundred dollars in cash for an unexpected emergency. Having some cash on hand can ease transaction problems in the event certain businesses are disrupted.

KEEP SOME CASH ON HAND

Locate key financial documents to keep accurate records, and have more than one copy. Examples: estate-planning files, bank information, brokerage and retirement accounts, as well as insurance policies, mortgage information, business records, and more.

TAKE FINANCIAL INVENTORY

Consider working with yourcurrent provider on reducingyour insurance payments. If your payment can’t be lowered, don’t hesitate to shop around for newrates to help lower your current monthly expenses.

RESEARCH INSURANCE POLICIES

Compile a list of importantcontacts, such as your insurance agent, accountant, attorney, doctors, and veterinarians. Review the list and make sure their phone number and email address is up to date.

REVIEW AND UPDATE PERSONAL RECORDS

Center for REALTOR® Financial Wellness

Emergency Guide

Money Saving Tips

Emergency Guide

Tips for Well-BeingFinances are obviously an important part of everyone’s life, but don’t forget to take care of your physical and psychological self too. Getting in financial shape is much easier if you are in good health, mentally sharp and confident in the security of your loved ones.


• Consider investing in a humidifier.Medical experts say it helpsreduce the transmission ofairborne viruses.

• Drink lots of water and fluids,and load up on healthy, nutrientrich meals.

• Contact your doctor andpharmacy to ensure you haveat least a 30-day supply ofyour prescription medicines.

• Create a contingency planif you or a loved one gets ill.

• Consider setting up a “sick room”in your house if anyone you livewith becomes sick with anycontagious virus.

• Ensure you and your loved oneshave completed a healthcare proxyform in advance of any illness.

• Have fever reducers, coughmedicine, and sanitary wipeson hand.

• Have a copy of your medicalrecords ready to supply if needed.

PHYSICAL WELLNESS

MENTAL HEALTH

LIFE &COMMUNITY

• Keep informed of important newsupdates, but resist the urge towatch a high volume of negativenews coverage.

• Be mindful of negative socialmedia posts that don’t containuseful information or have notbeen endorsed by a reliable source.

• If your circumstances allow forit, safely get outside each day tobreathe in fresh air and exercise.

• Keep in contact with loved onesor a friend on a weekly basis. Usephone or video chat if needed.

• If you are a person of faith,practice it.

• Set up Skype, FacebookMessenger, or Google hangoutsto socialize with your friendsand loved ones.

• Use your Outlook or Googlecalendar to set reminders foryourself related to personalgoals you still wish to achieve.Create a schedule and regularlycheck-in with friends, familyand colleagues.

• Follow a positive regiment eachday to keep your mind busy, yourbody moving, and your spirits up.

• Put together a list of projects youwant to complete — make suresome of them are fun! — and startgiving yourself timelines and goalsfor the week.

• Find something kind to do orsay to others, daily. Considervolunteering in your community.

Emergency Guide

Tips for Well-BeingFinances are obviously an important part of everyone’s life, but don’t forget to take care of your physical and psychological self too. Getting in financial shape is much easier if you are in good health, mentally sharp and confident in the security of your loved ones.


• Consider investing in a humidifier.Medical experts say it helpsreduce the transmission ofairborne viruses.

• Drink lots of water and fluids,and load up on healthy, nutrientrich meals.

• Contact your doctor andpharmacy to ensure you haveat least a 30-day supply ofyour prescription medicines.

• Create a contingency planif you or a loved one gets ill.

• Consider setting up a “sick room”in your house if anyone you livewith becomes sick with anycontagious virus.

• Ensure you and your loved oneshave completed a healthcare proxyform in advance of any illness.

• Have fever reducers, coughmedicine, and sanitary wipeson hand.

• Have a copy of your medicalrecords ready to supply if needed.

PHYSICAL WELLNESS

MENTAL HEALTH

LIFE &COMMUNITY

• Keep informed of important newsupdates, but resist the urge towatch a high volume of negativenews coverage.

• Be mindful of negative socialmedia posts that don’t containuseful information or have notbeen endorsed by a reliable source.

• If your circumstances allow forit, safely get outside each day tobreathe in fresh air and exercise.

• Keep in contact with loved onesor a friend on a weekly basis. Usephone or video chat if needed.

• If you are a person of faith,practice it.

• Set up Skype, FacebookMessenger, or Google hangoutsto socialize with your friendsand loved ones.

• Use your Outlook or Googlecalendar to set reminders foryourself related to personalgoals you still wish to achieve.Create a schedule and regularlycheck-in with friends, familyand colleagues.

• Follow a positive regiment eachday to keep your mind busy, yourbody moving, and your spirits up.

• Put together a list of projects youwant to complete — make suresome of them are fun! — and startgiving yourself timelines and goalsfor the week.

• Find something kind to do orsay to others, daily. Considervolunteering in your community.

Emergency Guide

Checklist & TipsDuring any challenging time, it’s important to take stock of what’s most important in your life. Set priorities and establish reasonable goals. There are organizations and agencies that can help. Be proactive, stay educated and positive, and look forward to a bright future!

• If needed, reach out to yourmortgage company or landlordto ask for a deferment.

• If you are having troublecommunicating with yourlandlord or mortgage lender,reach out to a HUD housingcounselor for assistance.

• If needed, reach out to allcreditors (credit cards, auto loan,medical payments, student loans,etc.) and request a deferment.

• If you aren’t making progresswith your lenders, be persistent.If lenders are charging youadditional fees, negotiate.

• If needed, reach out to yourutilities and other ongoingpayments (auto insurance,property taxes, homeownersinsurance, condo association,cable, internet, water, heat)and delay your payments,when possible.

• If you are in need physically oremotionally, seek guidance froma medical professional. Don’tforget to inform those closestto you.

FACING CHALLENGES

RESOURCES & BENEFITS

NEXT STEPS


• Research funds that may beavailable to you based on youremployment status.

• Your local community, county,or state may have additionalfinancial resources available toyou. Visit your local governmentwebsites and set up Google alertsto be notified as informationis provided.

• If you do not need defermentson your loans, continually payto reduce your interest later andkeep your loan term on track.Consider setting up paymentreminders through your bank orenroll in automatic payments.

• Put your best foot forward and beoptimistic! Challenging times maybe difficult to manage, but focusmore on the positive versusthe negative.

• Don’t overspend on stockpilinggoods. Follow the CDC’srecommendations for gettingready, and think about what youwant to have on hand for a coupleof weeks if you get sick (likeherbal tea, Kleenex, cough drops,cleaning supplies).

• Consider doing a thoroughcleaning of your home. Keep itclean by limiting or eliminatingvisitors and sanitizing commonareas like the microwaveand bathroom.

• Check in with family memberswho may not be able to leavethe house.

• Take time to educate yourselfto be better prepared forfuture emergencies.


CHANGESPRACTICE TIPS

and

2020 Summary of

Maryland REALTORS® prepared one new form, the 1031 Tax Deferred Exchange Addendum:

1.1031TaxDeferredExchangeAddendum

■ This form was created to facilitate 1031 exchanges.

PRACTICE

TIP If you are unfamiliar with 1031 exchanges, start by seeking assistance from your broker. Also, keep in mind Article 11 of the NAR Code of Ethics, which states that the services REALTORS® provide to their client shall conform to the standards of practice and competence in the specific real estate disciplines in which they engage. It goes on to say that REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Finally, any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

B Y C O L L E T T E M A S S E N G A L E , E S Q .


Maryland REALTORS® revised the Contracts, the Change in Terms Addendum, and the Property Inspections Notice as follows:

1.ResidentialContractofSale

■ Page 5, Paragraph 23 (Adjustments) – The last sentence in this paragraph is now in bold font.

PRACTICE

TIP The bold font is intended to emphasize the point that despite what seller’s arrangement with the fuel provider is, any fuel remaining in the tank at settlement becomes the property of the buyer. Be sure to discuss this matter with your client prior to settlement to ensure all parties are on the same page as to what the contract stipulates.

■ Page 5, Paragraph 24 (Settlement Costs) – The last sentence was reworded to provide more clarity.

PRACTICE

TIP For additional insight on the rationale for including this language, please see https://www.govinfo.gov/content/pkg/CFR-2010-title38-vol2/pdf/CFR-2010-title38-vol2-sec36-4313.pdf and https://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter8.pdf (Chapter 8, Page 8-10).


■ Page 10, Paragraph 60 (Buyer and Seller May Conduct the Transaction Electronically Using Electronic Signatures) – This provision was added to make the parties aware that Maryland law permits them to conduct the transaction electronically.

PRACTICE

TIP The parties may conduct the transaction electronically without having to prepare a separate agreement spelling out their intentions.

2.UnimprovedLandContractofSale

■ Page 4, Paragraph 24 (Settlement Costs) – The last sentence was revised to provide more clarity.

PRACTICE

TIP For additional insight on the rationale for including this language, please see https://www.govinfo.gov/content/pkg/CFR-2010-title38-vol2/pdf/CFR-2010-title38-vol2-sec36-4313.pdf and https://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter8.pdf (Chapter 8, Page 8-10).

■ Page 9, Paragraph 60 (Buyer and Seller May Conduct the Transaction Electronically Using Electronic Signatures) – This provision was added to make the parties aware that Maryland law permits them to conduct the transaction electronically.

PRACTICE

TIP The parties may conduct the transaction electronically without having to prepare a separate agreement spelling out their intentions.

3.ChangeinTermsAddendum

■ Paragraphs 3 & 4 (Written Application for Financing) & (Written Financing Commitment) – This provision was revised so it aligns more closely with the phrasing in Paragraph 10, the Financing Application and Commitment Paragraph of Maryland REALTORS® Contracts. Specifically, Paragraph 3 becomes new Paragraphs 3 and 4.


Paragraph 3 enables the parties to modify the time frame for Buyer to make a written application for financing. Paragraph 4 allows the parties to modify the time frame for Buyer to obtain the written financing commitment.

PRACTICE

TIP To minimize the chance of a default occurring, the parties should be reminded that if they agree to change the time frame buyer has for applying for financing and/or for obtaining a written financing commitment, they should review the Settlement Date to make sure it aligns with the revised time frames.

■ Paragraph 5 (Seller Contribution) – Paragraph 5 enables the parties to change the Seller Contribution initially agreed to in the contract.

PRACTICE

TIP If the parties agree to change the Seller Contribution, they should be reminded to review Maryland REALTORS® Seller Contribution Addendum to see whether the initial agreement was to credit buyer at settlement a specific dollar amount or a percentage of the sale price.

4.PropertyInspectionsNotice

■ Page 1, (Notice to Pursuant to Maryland REALTORS® Property Inspections Addendum) – The last sentence was included to remind the parties to refer to the Property Inspections Addendum concerning time frames for any action, response, or notice.

PRACTICE

TIP REALTORS® are advised to keep track of the time frames the parties have already agreed to in Maryland REALTORS® Property Inspections Addendum for performing any actions and providing any notices.


Maryland REALTORS® revised the Escrow Agreement between Buyer, Seller & Escrow Agent as follows:

1.EscrowAgreementbetweenBuyer,Seller,andEscrowAgent

■ Page 2, Paragraph 7.D. (Distribution of Deposit in Accordance with Thirty-Day Letter) – This section was added to make it easier for escrow agents to resolve deposit disputes.

PRACTICE

TIP The inclusion of Paragraph 7.D, enables the escrow agent to send a 30-day letter. There is a sample 30-day contained in the Broker Policy Manual Template.

Maryland REALTORS® revised the Brokerage Agreements as follows:

1.ExclusiveRighttoSellResidentialBrokerageAgreement

■ Page 3, Paragraph 10 (Home Security Systems that Record Audio) – This provision was modified to include a reference to the relevant Maryland Code Section, 10-402 of the Courts and Judicial Proceedings Article, Annotated Code of Maryland.

■ Page 6, Paragraph 21.B. (Presentation of Offers) – This provision was inserted to remind REALTORS® of their obligation to present all offers and counter-offers to and from the client.

PRACTICE

TIP Pursuant to the Maryland Code of Ethics, offers and counter-offer should be presented in full and in hard copy or electronic format.


2.ExclusiveRighttoSellUnimprovedLandBrokerageAgreement

■ Page 5, Paragraph 16.B. (Presentation of Offers) – This provision was inserted to remind REALTORS® of their obligation to present all offers and counter-offers to and from the client.

PRACTICE

TIPPursuant to the Maryland Code of Ethics, offers and counter-offers should be presented in full and in hard copy or electronic format.

3.ExclusiveRighttoLeaseResidentialBrokerageAgreement

■ Page 3, Paragraph 10 (Home Security Systems that Record Audio) – This provision was modified to include a reference to the relevant Maryland Code Section, 10-402 of the Courts and Judicial Proceedings Article, Annotated Code of Maryland.

4.ExclusiveBuyer/TenantResidentialBrokerageAgreement

■ Page 1, (Title) – The name of the buyer brokerage agreement was changed from Exclusive Buyer/Tenant Representation Agreement to Exclusive Buyer/Tenant Residential Brokerage Agreement to align more closely with the changes to the brokerage relationship provisions of the Brokers Act.

Collette Massengale, Esq., is Maryland REALTORS®’ Senior Staff Attorney

18 MARYLAND REALTOR® www.mdrealtor.org

The National Association of REALTORS® and its affiliated Institutes, Societies, and Councils provide a wide-range of programs and services that help members increase their skills, proficiency, and knowledge. Designations and certifications acknowledging experience and expertise in various real estate sectors are awarded by NAR and each affiliated group upon completion of required courses.

NAR FAMILY DESIGNATIONSAccredited Buyer’s Representative / ABR®

The Accredited Buyer’s Representative (ABR®) designation is designed for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home buying process.

Presented by REBAC (Real Estate Buyer’s Agent Council) Contact REBAC at [email protected](link sends e-mail) or 800-648-6224.

Accredited Land Consultant / ALCThe esteemed Accredited Land Consultants (ALCs) are the most trusted, knowledgeable, experienced, and highest-producing experts in all segments of land. Conferred by the

REALTORS® Land Institute. The designation requires successful completion of a rigorous LANDU education program, a specific, high-volume and experience level, and adherence to an honorable Code of Conduct.

Presented by the REALTORS® Land Institute (RLI) Contact RLI at 800.441.5263 or [email protected].

Certified Commercial Investment Member / CCIMThe Certified Commercial Investment Member (CCIM) designation is commercial real estate’s global standard for professional achievement, earned through an extensive curriculum of 200

classroom hours and professional experiential requirements. CCIMs are active in 1,000 U.S. markets and 31 other countries and comprise a 13,000-member network that includes brokers, leasing professionals, asset managers, appraisers, corporate real estate executives, investors, lenders, and other allied professionals.

Presented by the CCIM Institute Contact CCIM at 800-621-7027 or www.CCIM.com.

Certified International Property Specialist / CIPSInstantly align yourself with the best in international real estate by earning the CIPS designation. The designation requires completion of five full-day courses focusing on the

critical aspects of international real estate transactions. CIPS designees are connected to an influential network of over 3,500 professionals who turn to each other first when looking for referral partners.

Presented by the National Association of REALTORS® Contact Member Support at [email protected] or 1-800-874-6500 ext. 8369.

Certified Property Manager® / CPM®CPM® designees are recognized as experts in real estate management. Holding this designation demonstrates expertise and integrity to employers, owners, and investors.

Presented by Institute of Real Estate Management (IREM) Contact IREM® at 800-837-0706, ext. 4650.

National Association of REALTORS®, Affiliate Institutes, Societies & Councils Designations & Certifications

www.mdrealtor.org 19

Certified Real Estate Brokerage Manager / CRBThe Certified Real Estate Brokerage Manager (CRB) is one of the most respected and relevant designations offered in real estate business management and is awarded to REALTORS® who

have completed advanced educational and professional requirements. CRB Designees are better positioned to streamline operations, integrate new technology and apply new trends and business strategies.

Visit REBInstitute.com or contact the Real Estate Business Institute (REBI) at [email protected] or 800-621-8738

Certified Residential Specialist / CRSThe CRS designation is the highest credential awarded to residential sales agents, managers, and brokers. On average, CRS designees earn nearly three times more in income, transactions, and gross sales than non-designee REALTORS®.

Presented by Residential Real Estate Council Contact RRC at https://www.crs.com/about-us/contact-us or 800-462-8841.

Counselor of Real Estate® / CRE®The Counselors of Real Estate® is an organization of commercial property experts worldwide who provide seasoned, objective advice on real property and land-related matters. Only

1,100 professionals from all disciplines of real estate, academia, and government hold the CRE credential. Membership is selective and extended by invitation, although commercial real estate practitioners with 10 years of proven experience may apply.

Presented by The Counselors of Real Estate® Contact CRE® at 312-329-8427 or [email protected].

General Accredited Appraiser / GAAFor general appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National Association

of REALTORS®.

Presented by National Association of REALTORS® Contact GAA program staff at 800-874-6500 ext. 8268 or email [email protected].

NAR’s Green Designation / GREENThrough NAR’s Green Designation, the Green REsource Council provides ongoing education,

resources and tools to help real estate practitioners find, understand, and market properties with green features.

Presented by The Green REsource Council Contact The Green REsource Council at [email protected] or 800-498-9422.

Graduate, REALTOR® Institute / GRIREALTORS® with the GRI designation have in-depth training in legal and regulatory issues,

technology, professional standards, and the sales process. Earning the designation is a way to stand out to prospective buyers and sellers as a professional with expertise in these areas.

Presented by National Association of REALTORS® Contact your State Association to get information on program requirements, course schedules, location, and tuition.


Performance Management Network / PMNThis designation is unique to the REALTOR® family designations, emphasizing that in order to enhance your business, you must enhance yourself. It focuses on negotiating strategies and tactics, networking and referrals, business planning and systems, personal performance management and leadership development.

Presented by Women’s Council of REALTORS® Contact the Women’s Council of REALTORS® at 800-245-8512.

REALTOR® Association Certified Executive / RCERCE is the only professional designation designed specifically for REALTOR® association executives. RCE designees exemplify goal-oriented AEs with drive, experience and

commitment to professional growth.

Presented by National Association of REALTORS® Contact Renee Holland at 312-329-8545 or [email protected].

Residential Accredited Appraiser / RAAFor residential appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National

Association of REALTORS®.

Presented by National Association of REALTORS® Contact RAA program staff at 312-329-8268 or email [email protected].

Seller Representative Specialist / SRSThe Seller Representative Specialist (SRS) designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal

performance. The designation is awarded to real estate professionals who demonstrate the knowledge and skills essential for seller advocacy. SRS designees represent a global community of REALTORS® who use their advanced training and expertise to go above and beyond their client’s expectations.

Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at [email protected] or 800-621-8738.

Society of Industrial and Office REALTORS® / SIORThe SIOR designation is held by only the most knowledgeable, experienced, and successful commercial real estate brokerage specialists. To earn it, designees must meet standards of

experience, production, education, ethics, and provide recommendations.

Presented by Society of Industrial and Office REALTORS® Contact SIOR at 202-449-8200.

Seniors Real Estate Specialist® / SRES®The SRES® Designation program educates REALTORS® on how to profitably and ethically

serve the real estate needs of the fastest growing market in real estate, clients age 50+. By earning the SRES® designation, you gain access to valuable member benefits, useful resources, and networking opportunities across the U.S. and Canada to help you in your business.

Presented by SRES® Council Contact SRES Council at [email protected] or 800-500-4564.

continued on page 22


NAR FAMILY CERTIFICATIONSAt Home With Diversity / AHWDLearn to work effectively with—and within—today’s diverse real estate market. The At Home With Diversity certification teaches you how to conduct your business with sensitivity to all

client profiles and build a business plan to successfully serve them.

Presented by the National Association of REALTORS® For more information on this course and its business principles, please contact us at [email protected] or 800-874-6500 ext. 8393.

Broker Price Opinion Resource / BPORThe BPOR certification is no longer being awarded to members. Approximately 6,000 members have earned BPOR.

Certified Real Estate Team Specialist / C-RETSThe Certified Real Estate Team Specialist (C-RETS) certification is designed to improve team

development, individual leadership skills, and financial performance. C-RETS courses provide the tools, strategies, and knowledge that are required of today’s real estate professionals who are either considering or currently operating in a team environment. It is for team leaders, team members, those looking to start a team, and those who simply want to sharpen their management skills.

Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at [email protected] or 800-621-8738.

Digital Marketing: Social MediaThe RRC Digital Marketing: Social Media certification is for real estate professionals who want to develop expertise with social media resources and the sites that are an essential part of

today’s digital marketing mix, whether you are promoting your business or the properties you represent.


e-PRO®NAR’s e-PRO® certification program helps REALTORS® master the advanced digital marketing

techniques of today. With the e-PRO® certification, REALTORS® increase their ability to reach customers, expand their capabilities, and build trust by safeguarding client information.

Presented by the National Association of REALTORS® Contact e-PRO® at [email protected] or 877-397-3132.

Military Relocation Professional / MRPNAR’s Military Relocation Professional certification focuses on educating real estate

professionals about working with current and former military service members to find housing solutions that best suit their needs and take full advantage of military benefits and support.

Presented by REBAC (Real Estate Buyer’s Agent Council) Contact us at [email protected] or 888-648-8321.

www.mdrealtor.org 23

Pricing Strategy Advisor / PSAPresented by the National Association of REALTORS®

Contact us at https://pricingstrategyadvisor.org.

Real Estate Negotiation Expert / RENEThe first and only negotiation credential recognized by the National Association of REALTORS®, the Real Estate Negotiation Expert (RENE) certification is designed to elevate

and enhance negotiating skills so that today’s real estate professionals can play the game to win.

Presented by the Real Estate Business Institute Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at [email protected] or 800-621-8738.

Residential ListingThe RRC Residential Listing Specialist Certification program helps REALTORS® master the art

of listing residential properties. The courses provide strategies, tools, and more to help agents enhance and differentiate their listings.


Resort & Second-Home Property Specialist / RSPSThis certification is designed for REALTORS® who facilitate the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational

and/or vacation destination are involved in this market niche.

Presented by the National Association of REALTORS® Contact us at [email protected] or 800-874-6500 ext. 8320.

® Short Sales & Foreclosure Resource® / SFR®The SFR® certification teaches real estate professionals to work with distressed sellers and the finance, tax, and legal professionals who can help them, qualify sellers for short sales, develop

a short sale package, negotiate with lenders, safeguard your commission, limit risk, and protect buyers.

Presented by the National Association of REALTORS® Contact us at [email protected] or 877-510-7855.

Smart HomeThe Smart Home certification is for real estate professionals who want to

develop expertise in the technology, privacy issues, and best transition tactics involved in selling smart homes.


Events

Virtual is the New Global


Maryland REALTORS® Global Business Committee:

As the 2020 Global Business Committee wraps up its year, we wanted to express our gratitude to Jan Greene and Bayo Oshinnaiye, Chair and Vice

Chair, respectively, of the Committee. Jan and Bayo successfully led the Committee as we transitioned from in-person meetings to virtual meetings. A special note of thanks must be extended to David “Chief” Adefila, who made an incredibly detailed presentation to the Committee about his native country, Nigeria. “Chief” shared his exhaustive knowledge not just about real estate, industry, and the economy in Nigeria, but also about Nigerian culture and customs. We look forward to resuming our informal networking and knowledge sessions when we meet again in person.

Another transition that the Global Business Committee has successfully navigated is moving the Certified International Property Specialist (CIPS) Institute from an in-person offering to a virtual Institute. The CIPS Subcommittee, under the strong leadership of Erica

Solomon, resolved a number of challenges and is pleased to announce that Maryland REALTORS® Global Business Committee will be offering a virtual CIPS Institute on November 2, 4, 6, 9, and 10, 2020 via Zoom. Azizali Kanjee, a commercial

REALTOR® from Ontario, Canada, (and a phenomenal instructor) will be teaching for us again in November.

The Institute is structured so that At Home With Diversity (AHWD) will be offered on the last day,

November 10. This means that anyone who completes the five-day course will be eligible for their CIPS Designation, their AHWD Certification, and 6.0 hours of Maryland CE (Category F, approval pending).

The course is designed to allow REALTOR® attendees to learn the critical aspects of international real estate transactions, share professional expertise, and create new relationships across the world through the Global CIPS Network. CIPS designees have access to a worldwide community of real estate practitioners. Through this network, CIPS Designees may make and receive referrals globally, assist foreign-born persons to purchase a home or business in the U.S., and assist persons wishing to purchase a second home or a vacation home overseas.

The Global Business Committee is looking forward to another successful year in 2021, with Bayo Oshinnaiye serving as Chair and Cecilia Hayes as Vice Chair. Planning for a 2021 trade mission to Ghana and Nigeria is well underway, and we remain optimistic that we will be able to complete the trade mission safely, responsibly, and enthusiastically.

“Anyone who completes the five-day course will be eligible for their CIPS Designation, their AHWD Certification, and 6.0 hours of Maryland CE…”

Register today for the CIPS InstituteYou can be part of a global dialogue from the comfort of your home office. Register today for the CIPS Institute to expand your business internationally.

To register, visit http://bit.ly/CIPS-AHWD. For questions about the institute, please email [email protected], or call Sandi at 443 716 3500.


The Annual Conference Heads Back to

It’s Official!

The 2021 Annual Conference for Maryland REALTORS® will return to Ocean City, Maryland, on October 12–14, 2021. Our Host Hotel will be the

Clarion Fontainbleu, a beachfront resort.

“We are very excited to be coming back to Ocean City,” said Vicki Harmon, Co-Chair of the Conference & Events Program Advisory Committee, which oversees the organization of the Annual Conference. “While we will keep some of the popular traditions of our past, we’re working on a new and exciting format for all members to learn new skills to enhance their businesses.”

“We are looking at education tracks and keynote speakers that will engage all levels of membership, from experienced REALTORS® to those members who are new to the industry,” said Alicyn DelZoppo, Co-Chair, along with Harmon. “From our tracks to our keynotes, to the networking, this really will be a must-attend event in an area everyone loves.”

Mark your calendars now, and stay tuned for further updates. See you in OC in the fall of 2021!

Website Accessibility


Hotline B Y K A T H L E E N D A R T E Z , E S Q .

Q: What are website accessibility lawsuits? I am not entirely sure what this means and whether it affects my brokerage’s website.

A: Title III of the Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability in places of public accommodation,

which includes businesses that are open to the public such as restaurants, movie theaters, real estate brokerage offices, title company offices, banks, and hotels.

Potential liability under the ADA, however, is not limited to a brick and mortar environment. Increasingly, courts have held that, to the extent a business’s website is also a place of public accommodation, the ADA’s prohibition against discrimination applies. This means that people with disabilities, including those who use assistive technology (such as screen readers), must enjoy full and equal access to the website.

As REALTORS® we are also subject to the Fair Housing Act, which prohibits discrimination in housing and housing-related transactions because of disability. If your company, team, or individual website is inaccessible to people with disabilities, you could be denying those persons equal access to rental housing and homeownership opportunities. You could also find yourself named as a defendant in a lawsuit.

There has been a significant increase in lawsuits claiming that individuals with disabilities are not provided equal access to a company’s website. Web accessibility related lawsuits increased from 814 cases in 2017 to 2,285 cases in 2018, and to 5,592 in the first half of 2019 alone, according to the National Association of REALTORS®.

What can you do to decrease the likelihood of becoming involved in a lawsuit? The answer is not as straightforward as you would imagine. The United

States Department of Justice was expected to release guidelines in 2016, but that date was pushed to 2018, and the proposed rules were eventually withdrawn with no timeline established for their release. In the absence of any regulations, plaintiffs have argued, and many courts have agreed, that an appropriate standard is the Web Content Accessibility Guidelines (WCAG).

WCAG includes specific recommendations to make websites more accessible to people with a variety of disabilities. For example, there are recommendations that audio files require a written transcript and videos need to be captioned, so people who are deaf can still engage with these mediums; and that equivalent “alternative text” has to be included for images, so people who are blind have an appropriate description of the image.

A good first step would be to conduct an audit or review of your website to identify possible accessibility improvements. Depending upon the results, you may decide to add close captioning, voiceovers, or third-party solutions. Another recommendation is to reach out to NAR or to your E & O provider to learn more.

This is not a “one and done” project. Your business should ensure that one of the obligations of your website administrator, regardless of whether that person is in-house or outsourced, is to implement the most current WCAG along with constantly monitoring your website to ensure ongoing compliance. Our legal, ethical, and moral obligations to our customers and clients requires no less.

Kathleen Dartez, Esq., is Maryland REALTORS®’ Director of Legal Affairs

RPAC B Y M A R K F E I N R O T H , E S Q .

Political Advocacy in 2020


Over the last few months, the coronavirus pandemic has presented our REALTOR® community with tremendous challenges. Fortunately, demand for

housing remains high, and opportunities abound for those in our industry to successfully adapt.

These difficult times also present opportunities for political engagement and to respond to new circumstances. The REALTORS® Political Action Committee (RPAC) has adjusted to the new environment and found opportunities to support REALTOR®-friendly candidates for elective office at the national, state, and local levels of government.

The most significant of these opportunities arose from tragedy. Last October, Rep. Elijah Cummings died after a lengthy illness, leaving a vacant Maryland seat in Congress. Cummings was a towering advocate for Baltimore and a frequent voice of conscience. He was also a great friend to REALTORS® because of his interest in providing increased and affordable housing opportunities.

Governor Larry Hogan promptly scheduled a special election to fill Cummings’ open seat. Candidates for the special election were required to decide almost immediately if they would run for a full Congressional term by running in the postponed regularly scheduled statewide primary election set for June 2.

No fewer than 24 Democrats entered both the special and regular election including Maya Rockeymore Cummings, Cummings’ widow, former Congressman Kweisi Mfume, and several members of the Maryland General Assembly. The winning Democrat was Mfume with 43 percent of the vote. The second-place democrat was Rockeymore Cummings who garnered 17.1 percent of the vote. The winner of the Republican primary was Kimberly Klacik, but because voter registration in the district is 68% democratic, Mfume was heavily favored to win the special general election on April 28.

Rep. Mfume served in the U.S. House of Representatives from 1987 to 1996 and had a solid reputation working with the REALTORS® during that time. He left his seat in Congress to accept a position as CEO of the NAACP. Mfume is a Baltimore native and received his college education at Morgan State University.

Maryland REALTORS® invited Mfume to complete a written candidate questionnaire, which contained 11 policy questions. He answered each of the questions supporting the REALTOR® positions and therefore received a score of 100 percent. Both the Greater Baltimore Board of REALTORS® and the Maryland RPAC Trustees recommended that NAR RPAC Trustees support Mfume. NAR responded with a campaign contribution to Mfume shortly after the special primary election in early May that provided critical funding for his primary election held just five weeks later. Mfume won the June primary. It’s now all but certain that Kweisi Mfume will represent Maryland’s 7th Congressional District through December 2022, and the REALTORS® helped him achieve this victory.

Maryland REALTORS® and NAR will most likely weigh in on the campaigns in Baltimore for Mayor and City Council President; there are a few other local municipal elections where RPAC funds will be used to assist REALTOR®-friendly candidates. In the coming months, Maryland’s RPAC Trustees will have opportunities to appoint new Trustees to fill vacant seats. Maryland REALTORS® members who would like to be considered for one of the appointments may contact me at [email protected] for further information.

Mark Feinroth, Esq., is Maryland REALTORS®’ Director of Political Advocacy

Commercial Real Estate B Y D A V E F R I T Z

The Only Thing that is Constant is Change


The headline for today’s column didn’t come from me. It came from the ancient Greek philosopher Heraclitus. Looking at this statement today, amidst

our current situation, it seems an understatement. Now that change has been thrust upon us, how do commercial real estate practitioners respond?

We pivot! We adapt to the changing terrain. We revise our business plan and press forward. We’ve had enough time with the COVID shutdown, team meetings, and Zoom meetings, to reflect on our next chapter.

I’ll share some insights we’ve learned along the way to help the commercial practitioner refine their skills (pivot) and navigate their clients through the process.

Office Space“Who needs an office when you can work from home?” Although we’ve all heard this many times over the past few months, it’s too early to predict what the future of office demand will look like. There will be some industries and employees who can work remotely, while other companies will offer shift work or a staggered work week. There is a strong possibility that companies will reduce their footprints as leases come up for renewal.

However, for many companies it’s about the company’s culture and recruiting and retaining the best talent. That talent needs human interaction and collaboration. That is challenging in a remote environment.

■ Occupiers who were considering expanding pre-COVID had to pivot during the shutdown. As practitioners, we can advise them to

reconfigure their existing space to incorporate social distancing measures. Some occupiers paid out-of-pocket for such improvements to avoid having to sign a longer lease extension. We can help clients by advising them to consider redesigning their existing space and/or restructure their lease to help mitigate any risk associated with another government-ordered shutdown.

As brokers, we need to create a win-win for both parties. In order for Occupiers to have flexible lease terms, they need to understand that the Landlord is willing to work with them. Please keep in mind that negotiations may involve reduced incentives and tenant improvements with more of a focus on low net rent leases with flexible exit strategies.

■ Brokers are beginning to produce video tours of commercial spaces, which has been widely used by residential practitioners for years. We are advising Landlords to implement proper COVID-19 protocols to prepare for reopening and to consider upgrades to common areas while there are fewer occupants in the building.

■ As a broker, be overly prepared. There’s a low velocity of prospect tours/showings, most likely you have one shot to win their business.

RetailIn case you haven’t heard the narratives, some think this asset class is done. Caput. Finished. Retail will emerge again, as it always does, but it will look different.

■ By way of example, regional malls and some retail centers will need to repurpose their non-core retail space into other productive uses. Creative marketing towards medical uses or hospitals will help reposition the asset, which will


drive foot traffic for the center’s existing retail services. We’ve seen institutional uses such as hospitals, schools, universities, and houses of worship leasing non-traditional retail space. Advise your owner to consider alternatives.

■ Regional malls and out-parcel buildings may be redeveloped into fulfillment centers. Amazon and Walmart are racing for last-mile distribution centers and if they can’t find industrial space, non-performing retail space is being considered. It was reported that Amazon leased a 13-acre parking lot of a shuttered Sears store at White Marsh Mall. Amazon is currently using the parking for their last-mile delivery trucks. Only time will tell whether they decide to convert the existing 170,000 +/- sf building into a fulfillment center, which is happening in other markets.

■ Grocery-Anchored Shopping Centers are faring well as grocer’s sales volumes have dramatically increased during the shut-down. These neighborhood centers will do well, but some of their space may need repurposing as smaller tenants and restaurants continue to struggle.

■ It’s a delicate balance to co-locate non-traditional retail uses having a different price point than retail rents, but it does produce foot and vehicular traffic to help stabilize an asset.

IndustrialIndustrial has been the industry darling for the past several years as e-commerce and last-mile delivery has continued to fuel this asset class. As mentioned above, there is increased demand for refrigerated and freezer warehouse space to accommodate the sales volume of grocery stores.

■ Data Centers have also experienced tremendous growth due to e-commerce and the “cloud storage.” Loudoun County, in Northern Virginia, is considered the backbone of the internet. This submarket has seen the largest data center development in the U.S. as Amazon Web Services and other major players have been major contributors to that development.

■ If you’re an industrial broker or land broker, understand the infrastructure and power source that currently serves your property, or which could be provided by the local utility provider.

In the commercial space, we have been forced to pivot, become better advisors, and better problem solvers. Some say, we’re now “back to basics.”

Whatever you wish to call it, here are a few things to consider:

■ Do you need to pivot, revise your business plan, or consider specializing in another discipline?

■ Always help your clients in good times and bad; they have long memories.

■ Ask if they need help with PPP or SBA applications.

■ Be a good listener, not a broker.

■ Advise them to communicate with their Landlord or Lender, especially if rent relief, deferment, or forbearance is needed.

This is how we gain trust, which is invaluable. This is how one builds a career in this trade. The process of communicating with clients, attorneys, property managers, etc., will broaden your network and pay dividends. Reach out to those you haven’t served in a while and check in on them.

As they say, we’re in this together.

Dave Fritz is a Principal at KLNB Commercial Real Estate Services.

Housing B Y L A U R I E B E N N E R

Options for Veterans and Active Military


November is National Veteran’s and Military Families Month. Homebuying loans and incentives are among the benefits for men and women who

sacrifice so much serving this country.

Homeownership can be challenging for many military service members due to modest incomes and the possibility of being transferred to a new area. Despite this, homeownership among military members surpasses that of civilians. According to the most recent National Association of REALTORS® (NAR) Veterans & Active Military Home Buyers Profile, active-duty service members tend to buy at a younger age and purchase larger homes with a higher median price than non-military buyers. For real estate professionals willing to learn the nuances of military lending programs and incentives, you can prove yourself to be an indispensable partner.

The most well-known loan program for military members is through the Department of Veterans Affairs (VA). These loans, available to veterans and active-duty military members, feature no down payment requirements, no mortgage insurance, lower than average interest rates, limits on closing costs, and more lenient credit requirements. Loans are targeted to buyers who intend to live in the property full-time, although there are exceptions for spouses and families of deployed military members. To further assist active-duty members, the Service Members Civil Relief Act provides financial protection involving interest rates, income tax payments, eviction, and foreclosure. It is important to remember that VA loans are available for repeat use—they aren’t strictly for first-time buyers. Recent changes to the VA loan program expanded disability benefits to more veterans and eliminated upper loan limits, increasing the pool of eligible borrowers.

Lenders may have special programs or incentives targeted to veterans or current military service members. Although the State of Maryland Department of Housing and Community Development’s (DHCD) Maryland Mortgage Program Homefront program has been discontinued, the DHCD offers VA loans that can be coupled with the department’s down payment and closing cost assistance programs. USAA Bank offers a special streamlined program for VA refinances. The PenFed Credit Union Foundation has a financial assistance program for military and veteran homebuyers.

REALTORS® interested in working with current and former military members can enhance their education through NAR’s Military Relocation Professional (MRP) certification, a program designed to help identify housing solutions and available benefits and support. This one-day class outlines the process of military relocation, how to identify resources to help a military buyer, details about VA financing, and offers access to marketing tools. It can be taken online or in a classroom. For more information, visit the NAR website at www.nar.realtor.

For more information on resources for military and veteran homebuyers, please contact Laurie Benner, Director of Housing Programs at [email protected].

Laurie Benner is Maryland REALTORS®’ Director of Housing Programs

CEO Corner B Y C H U C K K A S K Y

The Racial Wealth Gap and Housing Policy


People of color and low-income families were already facing crushing housing cost burdens and housing instability, stemming in large part from

structural racism and a long history of discriminatory housing and lending practices. Last year, the homeownership gap between Black and white families reached record highs. During the Great Recession, Black and Latino households suffered devastating losses of household wealth, and they still have not caught up.

Housing is just one area where Black Americans suffer from discriminatory public policies. Throughout the United States, homes in Black neighborhoods are priced around 23 percent less than those in white neighborhoods. Many facets of ingrained social injustice and racial inequality stem from the country’s housing system, which for decades has discriminated against renters and homeowners of color.

Government actions at all levels and private institutions (including organized real estate) played a critical role in the creation and endurance of racist housing policies. The Great Depression, which led to the establishment of the FHA, prompted a “two-tier approach” to housing that promoted residential segregation. It did so by shunning investments in city areas where people of color lived and by placing so-called restrictive covenants to keep middle-class neighborhoods white.

Black Americans as well as other citizens of color found it extremely hard to qualify for home loans, as the FHA and the Veterans Administration’s mortgage programs largely served white-only applicants. Those discriminatory practices prevented people of color from accumulating wealth through homeownership.

What can we do to address these disparities?

REALTOR® Associations are uniquely positioned to play a key role in advocating for new policies to open pathways

to homeownership, which can have a profound effect on the persistent wealth gap and provide a foundation for economic stability. We support policies at the federal, state, and local level that focus on these themes, as originally identified by the Urban Institute:

■ Advancing Local Policy Solutions. Reform local land use and building codes, and revisit zoning laws and regulations.

■ Address Housing Supply Constraints and Affordability. Increase the supply of affordable housing, expand types of housing, overhaul renovation and rehab purchase lending programs.

■ Promote an Equitable and Accessible Housing Finance System. Increase down payment assistance programs, ensure access to credit.

■ Prepare Renters and Mortgage-Ready Young People for Homeownership. Improve and expand incentives and tax credits, financial education, and counseling.

■ Focus on Sustainable Homeownership and Preservation. Fund programs to prevent foreclosure for vulnerable families of color; focus on the intergenerational transfer of wealth.

While homeownership and affordable rental housing are not panaceas for addressing entrenched structural inequality, lawmakers must make amends for past and present harms inflicted on communities of color in the U.S. housing system. These efforts must also coincide with policies that promote access to resources and opportunity among residents of color. These policies will not erase centuries of injustice in the housing market, but they would represent affirmative steps toward racial equity in our housing system.

Chuck Kasky is Maryland REALTORS®’ Chief Executive Officer

Stay Connected with your Clients!


Your clients are busy, and they may be even busier right now, juggling virtual school and other things in our current environment. Stay connected in the way

that is easiest for them and their current needs. Here are five tools from Bright and our partners that can help you do this.

1. Auto Email and the Client Portal. Your clients are likely searching on their own, but that doesn’t reduce the importance of you creating a search and sending them regular listing updates. Consider expanding some of their criteria as they may be searching or considering a little more due to the low inventory and fewer restriction on location because of working from home.

2. Client Portal Notifications. After you take the time to set up Auto Email and your clients begin using the Client Portal, don’t forget to set up your notifications. You can set these notifications through email or text with options for frequency. Simply go to your Account and Settings on BrightMLS.com and choose MLS Settings and Portal Notification Settings to get started.

3. Invite Clients to interact in Homesnap Pro. Your buyers will likely download an app or two as they start searching for homes. Encourage them to download and use Homesnap. Send them a direct link, which will connect you to your buyer, ensuring any questions or interest on a listing is sent directly to you. And if your clients are connected to you through Homesnap they’ll be able to see Coming Soon listings that may not be available yet on other consumer sites. Learn more at Homesnap.com/Pro.

4. Cloud CMA with Homebeat: For your clients that may not be looking to buy or sell right now, consider the latest feature available in Cloud CMA, Homebeat. Homebeat provides an automated CMA with recent sale and value information at a frequency you set. That means once a year you can check in on a past client that may be ready to make a move. Or every few months you can send an update to a current client who’s still not sure when the right time to sell may be. Learn more at BrightMLS.com/CloudCMA.

5. Monthly statistics from SmartCharts: Your current and past clients count on you to take all of the competing headlines and information about the real estate market and make it make sense in a practical way. Every month you can view and share the latest statistics for your county through SmartCharts. The basic SmartCharts access is completely free for Bright subscribers. Register at getsmartcharts.com.

Want to learn more about these and other great Bright tools? Contact your Bright Coach about a training presentation for your office at BrightMLS.com/Coaches or sign up for a class at BrightMLS.com/Training.

Terms, conditions and fees for accounts, programs, products and services are subject to change. This is not a commitment to lend. All loans are subject to credit and property approval. Certain restrictions may apply on all programs. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. 1 Final commitment is subject to verification of information, receipt of a satisfactory sales contract on the home you wish to purchase, appraisal and title report, and meeting our customary closing conditions. There is no charge to receive a SureStart Pre-approval. However, standard application and commitment fees will apply for the mortgage loan application.

©2020 Citibank, N.A. NMLS# 412915. Member FDIC and Equal Housing Lender. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.

Your clients will be ready when their dream home is.

Ask us how your clients can get ahead in the home buying process.

Christian Dale Home Lending [email protected]/christiandaleNMLS# 460674

Mike Kidwell Home Lending [email protected]/mkidwellNMLS# 431321

• Confidence throughout their home search• A competitive advantage over other homebuyers

without a pre-approval• The ability to act quickly with a complimentary

pre-approval letter

With a SureStart® Pre-approval1, your clients can benefit from:

272802 - Maryland Realtor Magazine Aug-Sep - Campbell.indd 1 6/30/2020 11:33:00 AM

10%OFF

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your monthly or yearlysubscription to SmartCharts Pro.*

Use Promo CodeBright Stepswhen signing up

SmartCharts uses MLS data to power simple, good-looking charts, graphs and reports for your website and marketing.

• Print charts and graphs for your buyers and sellers

• Embed them on your blog or website

• Access them from your mobile device

• And create beautiful, polished reports you can share at listing appointments or your next open house.

Statistics specific to your subdivision and zip code with SmartCharts Pro

Simple. Easy. Shareable. Try SmartCharts today. Sign up at getsmartcharts.com.

*Members of AACAR, CCAR, GBBR, GCBR, HHAR, PGCAR, and Harford Co. AOR receive access to SmartCharts Pro as part of their Association membership.

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