NCAR Loses 6,873 Members Since 2007

Enrollment in the North Carolina Association of Realtors (NCAR) continued to dive in March 2009, as 1,062 members dropped out during the month, according to data from the National Association of Realtors (NAR). 23 states/territories saw a slight increase in membership. While five of the 10 largest chapters saw an increase in membership, North Carolina, eight in size, saw a decrease of 2.81% in March

Virginia, Georgia and South Carolina all added members in January 2009. The NCAR membership roll as of 2/28/2009, is 36,696 - the lowest since April 2006. This is 2.81% below the February enrollment of 37,758 and 11.67% below the 2/29/2008 enrollment of 41,542 making for a 12 month loss of 4,846 members.

Membership in NCAR peaked in November 2007 at 43,569 and the current roll of 36,696 represents a loss of 6,873 members or a 15.77% decline since then.

Mary Edna Williams - Be Very Ashamed

Mary Edna Williams is 2009 President-elect of the North Carolina Association of Realtors and President of the NC Homeowners Alliance responsible for the content of this disgusting mailer that came in Wake County mailboxes this afternoon.

Do unto others as you would have others do unto you. That belief and a strong work ethic is the standard that Mary Edna Williams lives by.

Mary Edna Williams website

Is this what you would have others "do unto you" Mary Edna? Or this? Or this? Do you really think what you are doing to Stan Norwalk and Ty Harrell is consistent with the Code of Ethics that "Sets REALTORS® Apart"? Is it really a standard you live by?

Code of Ethics Sets REALTORS® Apart
Here’s a general overview of just a few of the key principles REALTORS® willingly agree to under the Code:
· REALTORS® avoid practices, which may harm the public.
· REALTORS® do not exaggerate, misrepresent or conceal facts related to property or transactions.
· REALTORS® protect and promote their clients’ interests and treat all parties fairly.
· REALTORS® represent themselves truthfully in advertising and other public forums.

Yeah, right.

Nice Work If You Can Get It

Must be nice for a small group of non-realtor buddies to have access to a virtually bottomless well of money filled by millions of dollars in compulsory dues on every real estate broker and licensed or certified appraiser connected to a MLS in North Carolina. When will the North Carolina Real Estate Commission (NCREC) take action to protect consumers and licensed real estate brokers from the predatory and self-perpetuating actions of NCAR? After all, that's part of the NCREC mission:

Goal
· To identify and address issues affecting real estate consumers and practitioners
Objectives
· Detect and monitor special problems and areas of concern affecting real estate consumers and licensees
· Adopt positions, promulgate rules and propose legislation to address problems and concerns
· Disseminate to licensees and consumers information addressing subjects of special interest and concern

You won't find Zechini, Kent, DePriest or Woodard in the NC Licensee database. NCAR's political campaigns, supposedly on behalf of realtors, make claims and statements about transfer taxes and local government spending that would be prohibited if made by an actual real estate licensee to a consumer.

Misrepresentation or Omission [G.S. 93A-6(a)(1)]
Misrepresentation or omission of a material fact by brokers or salespersons is prohibited, and this prohibition includes both “willful” and “negligent” acts. A “willful” act is one that is done intentionally and deliberately, while a “negligent” act is one that is done unintentionally. A “misrepresentation” is communicating false information, while an “omission” is failing to provide or disclose information where there is a duty to provide or disclose such information.

Instead of the disciplinary action that an actual real estate broker would face, NCAR lobbyists are premiated for their powers of influence, regardless of the merits, or lack thereof, of the message:

The highest-ranked lobbyist involved in the transfer tax debate was John McMillan, who ranked 2nd and is a contract lobbyist who represented the N.C. Association of Realtors and 31 other clients. The Realtors Association opposed the real estate transfer tax. Also representing the Realtors Association were executive vice president Tim Kent and Rick Zechini, both of whom ranked among the most influential lobbyists for the first time (11th and 12th, respectively).

Nice work if you can get it

Forced Political Speech

Over the years, mandatory dues and forced political speech have been explored by the courts including the Supreme Court of the United States. Most, but not all, of the cases have involved mandatory union dues and political expenditures beyond the collective bargaining purposes of a union. The protection of members from forced political speech comes from what is know as the Abood line of cases. The case of Abood v. Detroit Board of Education was decided by the Supreme Court in 1977.

The Court ruled that compulsory dues for politics violates the First Amendment and that it is illegal to withhold forced dues from dissenters beyond the cost of collective bargaining.

National Right to Work Legal Defense Foundation.

In 1988 the Supreme Court ruled in Communication Workers v. Beck, a case related to a specific collective bargaining provision, that non-members required to pay dues could not be compelled to pay dues or fees beyond those related to collective bargaining. This established what is known as "Beck rights".

The Supreme Court again ruled June 2007 in a case about the protection of non-members from forced political speech, Davenport v. Washington Education Association, by upholding a Washington State law making it harder for unions to spend mandatory fees collected from nonmembers on political campaigns.

Prior court rulings have held that people required to pay fees to certain organizations for professional or other reasons -- such as attorneys who must join a state bar in order to practice law or undergraduates who are assessed student-government fees -- can't be compelled to contribute to political causes they oppose. Those rulings often have led to "opt-out" policies, in which individuals can request a refund of the portion of their fees that would be used for political speech.

Wall Street Journal 1/8/07

The Supreme Court in 1990 had held in Keller v. State Bar of California that:

1. The State Bar's use of petitioners' compulsory dues to finance political and ideological activities with which petitioners disagree violates their First Amendment right of free speech when such expenditures are not necessarily or reasonably incurred for the purpose of regulating the legal profession or improving the quality of legal services.

The virtual monopoly held by the North Carolina Association of Realtors (NCAR) over licensed residential real estate brokers in North Carolina, (NCAR members and non-members alike), North Carolina's Right to Work Law and the case law established by the United States Supreme Court, makes NCAR vulnerable to legal challenge over the mandatory dues assessment for the Issues Mobilization Fund and threatened punishment of dissenting members.

Realtors Held Hostage

Raleigh area Realtors Becky Harper and Carlton Brown have written an op-ed about the special assessment imposed on members by the North Carolina Association of Realtors for the political Issues Mobilization Fund. The article appeared in this morning's Raleigh News & Observer.

  Realtors Held Hostage

Realtors statewide have received a $70 mandatory assessment levied by the N.C. Association of Realtors to replenish its Issues Mobilization Fund. The Realtors association will use this money to pay for lobbying against things such as proposed stormwater management rules in coastal counties and Jordan Lake, and against steep-slope building restrictions in the mountains.

Every Realtor is forced to pay these fees. Failure to pay will eliminate access to the Multiple Listing Service (MLS), the essential tool of a Realtor's trade.

The association has created a myth that it speaks for a huge constituency of committed members and has backed this up with its deep pockets. Its leadership, staff and paid lobbyists have used this massive fund to advance an agenda with little meaningful input from the thousands of residential Realtors who pay their dues just to maintain MLS access.

New Incentive Disclosure Rules

A change to real estate rules in North Carolina will require written disclosure of commissions, incentives, bonuses, rebates and other considerations provided to real estate brokers including the value of the payments and the identity of the person or company making the payment. The changes to Real Estate Commission Rules were approved by the NC Rules Review Commission on July 17th, 2008 and scheduled for formal publication in the NC Register September 2nd, 2008. The rules had been approved by the Real Estate Commission in May though at one point it appeared that the Real Estate Commission was hesitating to vote on them due to pressure from the real estate industry. The rules become effective October 1st, 2008.

The change was spawned by the publication of an article in the Charlotte Observer in 2007 (noted previously in a post called Bonus Round). The investigative reporting by Peter St. Onge and Binyamin Applebaum revealed that home buyers were unaware that their real estate brokers had received a bonus from the homebuilders selling them houses. The NC Real Estate Commission established an "Incentive Disclosure Advisory Commission" which issued a report November 2007 with three main observations/recommendations:

After reviewing and discussing the relevant issues, the committee determined that proper disclosure of incentives of more than nominal value requires:

1. That the disclosure be in writing and preferably accompanied by an oral explanation of the incentive arrangement, that it be prominent, and that it be acknowledged by the agent’s clients; but if the client fails to acknowledge the written disclosure, the broker may proceed with the transaction after noting this in his or her transaction records.

2. That the value of the incentive be disclosed and, if other than cash, a description of the incentive item and its monetary value stated.

3. That the disclosure by the agent be timely; i.e., preferably while showing properties for which an incentive is being offered, but in no event later than the making of the buyer’s offer to purchase such properties.

The committee then concluded that, since the current Commission rule on disclosing the receipt of sales incentives does not require that the disclosure be made in writing nor does it address the timing or content of the disclosure, the rule should be amended to incorporate the disclosure elements it identified.

The Commission went on to develop amendments to the rules which were submitted to the Rules Review Commission and published in the North Carolina Register:

BROKERAGE FEES AND COMPENSATION

(a) A licensee shall not receive, either directly or indirectly, any commission, rebate or other valuable consideration of more than nominal value from a vendor or a supplier of goods and services for an expenditure made on behalf of the licensee's principal in a real estate transaction without the written consent of the licensee's principal.

(b) A licensee shall not receive, either directly or indirectly, any commission, incentive, bonus,rebate rebate, or other valuable consideration of more than nominal value for services which the licensee provides, recommends, procures, or arranges relating to a real estate transaction for any party, without full and timely disclosure to such party; party. Full disclosure shall include a description of the commission, incentive, bonus, rebate, or other consideration including its value and the identity of the person or party by whom it will or may be paid. A disclosure under this rule is timely when it is made in sufficient time to aid a reasonable person's decision-making. provided, however, that nothing When the party is the licensee's principal, the licensee shall also confirm the disclosure in writing before the party makes or accepts an offer to purchase, lease, rent, or option, or before the party enters into any other contract relating to a real estate transaction. Nothing in this Rule shall be construed to require a licensee to disclose to a person not his principal the compensation the licensee expects to receive from his principal in a real estate sales or lease transaction or from the licensee's employing broker. Nothing in this Rule shall be construed to permit a licensee to accept any fee, kickback or other valuable consideration that is prohibited by the Real Estate Settlement Procedures Act of 1974 (12 USC 2601 et. seq.) or any rules and regulations promulgated by the United States Department of Housing and Urban Development pursuant to such Act. said Act or to fail to make any disclosure required by said Act or rules.

(c) The Commission shall not act as a board of arbitration and shall not compel parties to settle disputes concerning such matters as the rate of commissions, the division of commissions, pay of brokers, and similar matters.

(d) Except as provided in (e) of this rule, a licensee shall not undertake in any manner, any arrangement, contract, plan or other course of conduct, to compensate or share compensation with unlicensed persons or entities for any acts performed in North Carolina for which licensure by the Commission is required.

A public hearing was held April 16th, 2008 by the Real Estate Commission and the proposed amendment, with minor technical changes was approved by the Rules Review Commission July 17th, 2008.

Pending action by the [Real Estate] Commission on the proposed rule change, licensees are reminded that they are required by current Commission rules to fully disclose to their clients any compensation incentive they are offered and that federal law requires them to report on the HUD-1 form their “total sales/broker’s commission” including any compensation incentives.

Reporting of incentives is particularly problematic for buyers of new homes when builders provide performance incentives to realtors many months after a sale. The rules change will require written disclosure prior to an offer of incentives such as bonuses and realtor reward programs such as those offered in NC by Atreus Homes:

In 2007 the yearlong "Dream On"program of Atreus Homes & Communities, formerly HomeLife Communities,provided $10,000 each month to the three top-selling agents.

Winners, rewarded quarterly, were:
April:
· First -- ($5,000) Tiffany Richardson, Coldwell Banker Howard Perry & Walston
· Second -- ($3,000) Janet Smith, Fonville Morisey
· Third -- ($2,000) Phi Jacobs, New Homes.com
May:
· First -- ($5,000) Norma Abney, Realty World
· Second -- ($3,000) Teresa Pitt, Century 21/Vicki Berry
· Third -- ($2,000) Robert Page, Page Agency
June:
· First -- ($5,000) Ingrid Wright, ReMax Highlander Realty
· Second -- ($3,000) Glen Savio, Fonville Morisey
· Third -- ($2,000) Zach James, Pinnacle Properties
July Winners
· First place -- Jasper Gorham, Realty Executives Triangle
· Second place -- Hilda Eubanks, Brokers United Realty
· Third place -- Neill McLeod, Access Real Estate Services
August Winners
· First place -- Phi Jacobs, New Homes.com
· Second place -- Jeanine Lind, Allen Tate
· Third place -- Nigre Holcroft, New Homes Realty
September Winners
· First place -- Tiffany Richardson, Coldwell Banker Howard Perry & Walston
· Second place – Mark Connor, Fonville Morisey
· Third place – Rachael Leber, Coldwell Banker Howard, Perry & Walston
October 2007 Winners
· First place – Mark Connor – Fonville Morisey
· Second place – Kirk Keyes – America’s Best Realty
· Third place -- Samuel Pyrtle – Fonville Morisey
November 2007 Winners
· First place – George Wilson – Real Living Partners Triangle Inc.
· Second place – Thomas Wohl – ReMax Preferred Associates
· Third place – Ransford Thompson, Real Estate Today
December 2007 Winners
· First place -- Barbara Brotherson – ReMax United
· Second place -- Rachael Snow Lam – First Triangle Realty Inc.
· Third place- Julie Crespo – Crespo Real Estate

In 2008 Atreus recognized and awarded Triangle-area Realtors with $20,000 in cash prizes for quarterly “Extreme Realtors Rewards Program” Realtor incentive program.

Winners for the first quarter of 2008 are:
· First place – Laura Bonds – Bonds & Associates Realty - $10,000
· Second place – Sandra Smith – Coldwell Banker Howard Perry and Walston - $5,000
· Third place - Robbin Sutton - Pinnacle Realty - $3,000
· Fourth place – Larry Thomas - Brokers United - $2,000
Winners for the second quarter of 2008 are:
· $10,000 First Place Winner – Donnis Dunn of A. Dunn Deal Realty
· $5,000 Second Place Winner – Christian Isaacs of Isaacs Realty
· $3,000 Third Place Winner – Maggie Hobberchalk of NC Neighborhood Realty
· $2,000 Fourth Place Winner – Arneta Wicker of A. Wicker Realty

Atreus Homes Raleigh reports offering 3% commission and, additional flex money on certain homes. Flex money is most often a euphemism for down payment assistance (DPA) which has been banned by recent federal legislation for FHA guaranteed mortgages.