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March 7, 2007
Homeowners would
face further regulation under proposed changes to state’s lead law
Bay
State property owners of homes built before 1978 could be subject to
increased costs and regulation under new legislation filed on Beacon
Hill that seeks to amend the Commonwealth’s
lead paint law. Specifically, a measure introduced by state
Senator Patricia Jehlen (D-Somerville) seeks to require all persons
selling properties constructed on or before January 1, 1978 “to
conduct an inspection for dangerous levels of lead at their expense
prior to the signing of a purchase and sale agreement.” In addition,
the bill seeks to require all landlords to perform inspections of all
rental units built prior to January 1, 1978 before any change in
tenancy or once in a two-year period, whichever is less.
Currently,
Massachusetts law requires that
prospective purchasers and tenants of residential property built prior
to 1978 be provided with a notification form regarding the presence of
lead-based paint in the housing. Furthermore, the law allows
prospective buyers 10 days in which to have a lead inspection
performed and if lead is discovered, the buyer may withdraw from the
sales transaction.
Draft language in the bill also would revise existing law to stipulate
that de-lead certificates only be good for two years, whereas today a
Letter of Compliance is considered to be valid indefinitely (and a
Letter of Interim Control is valid for one year with the ability to
renew for a second year), provided the property owner makes reasonable
efforts to ensure the home is in good repair, principally by making
sure there is no chipping or peeling lead paint. Finally, if passed,
the bill would require soil and tap water to be tested as part of any
lead inspection.
The proposed
legislation will create additional hardship and expense for local
property owners who already face some of the toughest public health
statutes in the U.S. regarding lead paint law enforcement, according
to REALTORS® and officials with the Greater Boston Real Estate Board,
who intend to oppose the initiative.
Governor’s tax
plan could tap real estate to help close budget gap
Although Governor Deval Patrick’s plan to close a projected $1.3
billion budget gap in FY ’08 primarily targets multi-state
corporations, business trusts, and the insurance industry to generate
nearly $800 million in future tax payments, some companies and
individual taxpayers with real estate interests could face an
increased tax burden as well. Specifically, as part of legislation (H.B.
3756) he filed last month, Gov. Patrick hopes to raise $12 million
during the next two years by imposing a deeds excise tax on taxpayers
when they sell an ownership interest in an entity that owns buildings
or land, as opposed to just selling the real estate outright.
Of all the tax
changes being sought by the Governor, by far the most revenue – as
much as $200 million – would be raised by requiring large companies to
adhere to “combined reporting” rules that obligate firms which operate
subsidiary corporations in multiple states to pay corporate excise
taxes based on a share of overall company profits, rather than just
the income earned by its Massachusetts unit(s). If successful in
closing this tax loophole and others, as well as securing an estimated
$515 million in proposed budget cuts, Patrick says he’ll be able to
increase local aid by 5.5 percent and provide property tax breaks in
the form of state income tax credits to lower-income homeowners, as
presently called for his proposed FY ’08 budget.
Federal, state
officials look to limit consumers’ risk to subprime loans
This past week, federal banking regulators and housing officials
within the Patrick administration each announced plans to increase
regulation and restrictions on subprime mortgage lenders in an effort
to protect homeowners from risky loans and foreclosure. Concern over
subprime mortgages – higher interest rate loans that are made
available to low-income borrowers and those with blemished credit
records or large debts – has been increasing in recent months as the
delinquency rate on home loans, especially adjustable rate, subprime
mortgages, continues to climb both nationally and in Massachusetts.
In response, the
Federal Reserve Board and four other agencies that regulate the
nation’s banks, thrifts and credit unions have issued proposed new
guidelines that would require lending institutions to provide
consumers with “clean and balanced information about the relative
benefits and risks” of subprime mortgages. If adopted, the new rules
could result in fewer consumers qualifying for these high-risk loans,
including some deserving minority and first-time home buyers.
Meanwhile, Daniel
O’Connell, the commonwealth’s new Secretary of Housing & Economic
Development, said earlier this week that the Patrick administration
would like to more strictly regulate subprime lenders and supports
legislation that would require all loan officers working for a
mortgage broker to be licensed in Massachusetts. With an estimated
30,000 mortgage originators currently operating in the state and a
licensing fee of $250 in place, up to $7 million could be generated
through new licensure requirements, according to O’Connell, enough to
establish a $5 million fund the administration would like to create to
assist homeowners facing foreclosure as well as hire more state
examiners to monitor and investigate mortgage lenders.
Also, this past
week, Freddie Mac announced that it will no longer buy certain
subprime, adjustable rate mortgages that it deems most vulnerable to
default or expose borrowers to undue risk. Among the loans its
targeting are ARMs with low "teaser" rates that adjust upwards
significantly after two or three years.
Significantly, a new
study just released by the Federal Reserve Bank of Boston found that
adjustable rate, subprime loans accounted for more than half of all
foreclosure filings in the Massachusetts Land Court this past year,
and, nationwide, the percentage of subprime mortgages originated in
the U.S. has grown from just 2.6 percent of all loans in 2000 to 13.5
percent in 2006.
REALTOR® ads
promote today’s favorable market conditions
This week, print ads touting today’s low mortgage rates, healthy
inventory levels and more realistic home prices began appearing in
Community Newspaper publications across eastern Massachusetts as part
of this year’s public awareness campaign from the Massachusetts
Association of REALTORS®. At the same time, web banner ads and radio
spots are also appearing on Boston.com, as well as WBOS (92.9 FM),
WROR (105.7 FM) and WTKK (96.9 FM), to promote the favorable market
conditions and the benefits of working with a REALTOR® to buy or sell
a home. It’s all part of a 16-week
MAR ad campaign that’s designed to generate new business for local
REALTORS® during the busy spring market by supplementing the National
Association of REALTORS®
“Buy Now”
public awareness campaign.
Notably, the
Greater Boston Association of REALTORS® also plans to supplement the
NAR media buy
schedule later this spring by placing quarter page ads in The
Boston Globe and Boston Herald. And, individual agents can
participate in this year’s campaign as well by incorporating
specially-produced promotional banners into the signatures of their
business e-mails. Over a half dozen e-mail banners have been created
and are now available for download from NAR to promote the “Buy Now”
message and the advantages of working with a REALTOR® during the
property transaction process.
Marketing Miscues:
Misrepresentations in advertising can lead to ethics violations
With
REALTOR® membership close to an all-time high, differentiating
yourself from the competition can be a challenge. Be careful
not to become too exuberant when developing marketing slogans and
materials however, because a little too much creativity could lead to
over-exaggeration or misrepresentation in advertising, and that could
result in a violation of Article 12 of the REALTOR®
Code of
Ethics. For tips on how to prevent marketing miscues; avoid
misleading acts or statements that could lead to undisclosed dual
agency; and other unintended actions in your real estate practice that
could result in a finding of unethical conduct, read the article
Five
Everyday Ethical Dilemmas from REALTOR® Magazine Online.
Be a voice for the
industry – plan to participate in REALTOR® Day on Beacon Hill
If you’re interested in protecting your business interests and keeping
homeownership affordable for your clients and customers, then be sure
to set aside Thursday, June 7th to attend this year’s
REALTOR® Day on Beacon Hill program at the Massachusetts State House
in Boston. The program, which begins at 9:30 a.m., typically features
addresses from state government officials and REALTOR® leadership
about public policy issues of interest to the real estate industry. In
addition, this event affords you the opportunity to speak with your
state legislators about important bills that could affect your
livelihood and/or the rights of property owners in the Bay State.
This year,
National Association of REALTORS® President Pat Vredevoogd Combs will
be on hand to deliver special remarks to attendees, and Governor Deval
Patrick also has been invited to participate. With several property
transfer tax proposals already introduced, bills to amend the state’s
lead paint law on file, and legislative initiatives to promote housing
production under consideration by state lawmakers, there are plenty of
good reasons to attend the 2007 REALTOR® Day on Beacon Hill program.
We hope to see you there!
Are you
pet-friendly? Scratch that niche
A newly released study by the American Kennel Club reveals that dog
ownership heavily influences both lifestyle and purchasing habits,
according to Club officials. In fact, data show that there are
approximately 73 U.S households that own dogs, and 91 percent of the
club’s active members and 8 out of 10 purebred dog owners own their
home. As a result, dog ownership tends to influence home search
choices, including the location, floor plan and yard size of the house
they purchase/live in. For example roughly two-thirds of American
Club members fence their yards in some way, the study shows.
If you’re a pet
lover and are in-the-know about the location of dog-friendly parks and
beaches; are familiar with town licensure, leash laws and other
ordinances pertaining to dog owners, and can direct consumers to
nearby services, such as veterinarians, dog walkers, and doggy daycare
or obedience training schools, you may want to consider promoting
yourself via The Pet Realty
Network. This Naples, FL. based business, has created a
searchable online database of pet-friendly home listings and real
estate professionals across the U.S. The Network website, which
carries a $50 annual fee for agents to register on, caters to not just
to dog lovers, but those who own cats, horses, and various small
household animals.
GBAR to present CE
courses in Boston and Waltham
Members
in need of continuing education credits to renew their license are
encouraged to enroll in one or more of the six
CE courses being offered by GBAR in April. On April 5th,
CE classes on Real Estate Brokerage Ethics (9:30 a.m. - 12 p.m.),
Residential Rental Agency (12:30 –2:30 p.m.), and Foreclosures, Estate
Sales and Auctions (2:45 – 4:45 p.m.) will be held at the
Massachusetts Association of REALTORS® offices at 256 Second Avenue in
Waltham. The first two classes will be feature former GBREB counsel
Richard Sullivan, Esq. as instructor, while attorney George Megaloudis,
Esq. will facilitate the final class of the day. Notably, the Real
Estate Brokerage Ethics course not only provides two hours of CE
credit, but also fulfills the requirement for NAR Quadrennial Ethics
training, which all REALTORS® must complete between January 1, 2005
and December 31, 2008, as part of the second four-year cycle of ethics
training.
Additionally, on
April 23rd, three CE classes will be presented at the GBREB
offices at 11 Beacon Street in Boston. On that day, courses on
Chapter 93, Consumer Protection & Business Regulation for Brokers &
Salespersons (9 - 11 a.m.), Anti-trust (11:15 a.m. - 1:15 p.m.), and
Alternative Dispute Resolution & Procuring Cause (2 - 4 p.m.) will be
presented, with William Mullen, Esq. instructing the morning classes
and MAR General Counsel Stephen J. Ryan, Esq., facilitating the
afternoon class.
Registration is
$45 per class or $105 for members who attend all three courses
scheduled for the same day. To register, log on to
www.gbar.org or call 617-423-8700. Don’t delay as seating is
limited for these programs!
GBAR to present
ABR courses this spring
This
April, GBAR will present the popular
Accredited Buyer Representative (ABR) designation course and the
elective E-Buyer class for those members interested in receiving
comprehensive training in buyer representation. If you want to become
educated on how to provide the same level of service and fidelity to
buyers that sellers have come to enjoy, then you’ll want to attend
these classes to earn your ABR designation, which happens to be the
only buyer representative designation recognized by the National
Association of REALTORS®.
The two-day
ABR course
examines agency theory and practice, standards of care in the delivery
of buyer agent representation, and strategies to target niche markets
and build your buyer representation business. In addition, attendees
will receive instruction on how to successfully handle offers and
negotiations as a buyer agent, and learn about disclosure
requirements, vicarious liability and other risk management
issues. Meanwhile, the one-day
E-Buyer class
will teach agents how to effectively service today’s Internet savvy
consumers. Specifically, participants will learn strategies to locate
and market to the e-buyer, predictive modeling, customer
confidentiality, and the tools and techniques for conducting business
electronically.
The ABR course
will be offered on April 9-10, with the E-Buyer class scheduled for
April 11th. Both courses will be held on the campus of
Regis College in Wellesley. Registration fees for GBAR members are
$300 for the ABR course and $175 for the one-day E-Buyer course, or
enroll for both programs for just $400. For more information or to
register call GBAR at 617-423-8700 or go online to the
Education & Events section of gbar.org.
CCIM course to
address basics of commercial real estate analysis
Residential real estate practitioners who may be looking to expand
their business to serve local commercial real estate property owners
and investors may wish to consider attending the course
Introduction to Commercial Investment Real Estate Analysis being
presented by the New
England CCIM Chapter from March 19-20 at the John Hancock
Conference Center in Boston.
The two-day
program will provide an overview of the commercial investment real
estate business and markets, instruction on how to understand and
execute commercial leases, and an in-depth presentation on the basics
of investment analysis. You’ll also learn about commercial loan
financing and how to use a financial calculator to complete commercial
transactions. The course is open to all REALTORS® and qualifies for
one elective credit toward the
Certified Commercial
Investment Member (CCIM)
designation.
Tuition is
$325. To register, call 800-621-7027 or go
online to the New England CCIM Chapter website.
GBAR.org |
