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November 29, 2007
GBREB-Supported
Legislation Passed into Law
Legislation supported by the Greater Boston Real Estate Board and
the Massachusetts Association of REALTORS® was passed into law this month. Governor Deval Patrick signed legislation stating that properties built
on landlocked filled tidelands are to be exempted from the state’s
Chapter 91 licensing process for waterfront properties.
The legislation
went immediately into effect November 15.
In February the
Supreme Judicial court ruled that the Department of Environmental
Protection – who has administered Chapter 91 since 1990 – no longer had
the authority to grant permits for development on properties located on
filled tidelands (at least 250 feet
from the water and separated from it by a public way). The
Legislature’s clarification clears 3,000 acres of properties in Boston
for development and an additional 1,000 acres throughout Massachusetts.
Greater Boston
Real Estate Board CEO Gregory Vasil urged swift passage of this
legislation during his testimony earlier this year before the Joint
Committee on Natural Resources & Agriculture.
The Legislature
also approved additional protections for the public interest by means of
a new public benefit review for large developments in tidelands and an
examination of groundwater levels in communities (such as Boston’s Back
Bay) where low groundwater is a concern.
The bill was
crafted by a conference committee chaired by Representative Frank Smizik
and Senator Pamela Resor.
Take Action on FHA
Loan Reform and GSE Loan Limits
The National Association of REALTORS® have issued two Calls for Action
in which REALTORS® are being asked to contact their United States
Senator to urge passage of legislation to modernize FHA loan programs
and to allow regional adjustments to Fannie Mae and Freddie Mac (GSEs)
loan limits for high cost areas such as Boston. The U.S. House passed
bills addressing both of these initiatives earlier this year, but the
Senate remains stalled on these matters.
Participating in
the Calls for Action only takes a few minutes by visiting NAR’s
REALTOR® Action Center.
You must login or register on the site, which also only takes a few
moments.
FHA Reform (S.
2338) will provide existing homeowners with secure and affordable
refinancing alternatives and more mortgage options for first-time
homebuyers. Increasing the supply of affordable mortgage money is a
critical component for bringing stability to the nation’s turbulent
housing markets. The reform would also: use risk-based pricing for FHA
products; eliminate the three percent downpayment requirement on FHA
loans for first-time homebuyers and increase the number of reverse
mortgages the FHA can insure.
Increasing Fannie
and Freddie loan limits would make lower-cost GSE mortgage financing
available to more families trying to buy homes in high cost areas and
increase the supply of mortgage money.
Click
here to take action.
Send your United
States senator a wake up call by asking him or her to support these two
measures that are vital to real estate markets across the country.
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GBAR Members
Attend John Kerry Reception |
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GBAR Members Judy Moore of RE/MAX Landmark in Lexington, Mike DiMella
(GBAR Government Affairs Committee member) and Philip "P.T." Vineburgh, both of
Charlesgate Realty Group in Boston met with Senator John Kerry at a
reception in his honor on November 9. Moore, the NAR Federal Political
Coordinator for Sen. Kerry, informed him of a forthcoming $1,000 RPAC
contribution from the REALTOR® organization. Kerry promised to meet
with delegation for REALTORS® during next year’s NAR Legislative
Meetings in Washington, D.C. |
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From left to
right: Mike DiMella, Senator Kerry, Judy Moore and Phillip Vineburg
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Legal Q&A with
Richard Sullivan |
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GBAR is excited to announce its newest section to On the Home Front
– a legal question and answer from attorney Richard Sullivan. Have a
question for him? E-mail GBAR Communications Coordinator Christina
Meehan at
cmeehan@gbreb.com with your question and it may be featured in an
upcoming issue! Don’t forget that Designated REALTORS® and authorized
Office Managers can take advantage of GBAR’s
Brokerage Counseling Hotline at (617) 573-5822. |
Q: Can a Listing
Broker refuse to pay a Buyers Agent or take them to arbitration if the
Buyers Agent has a contract with the Buyer?
A:
More and more REALTORS® are entering into Buyer Representation
Agreements with their buyer clients which both obligate the buyers to
work exclusively with the agent and obligate the buyer to pay the broker
a commission in the event of a purchase. Although Article 16 of the
REALTOR® Code of Ethics requires other REALTORS® to respect the existing
agency relationship, Article 3 makes clear that the obligation to
cooperate and the obligation to compensate are two separate duties.
Procuring cause disputes are a continuing issue where two agents have
shown a buyer the same property and the mere existence on a Buyer
Representation Agreement does not determine entitlement to a commission
in a procuring cause dispute.
Whereas the Buyer
Representation Agreement creates an agreement between the buyers and
their agents, the offer of compensation on the Multiple Listing Service
from the listing agent; the party against whom most arbitrations are
filed, still require the party claiming entitlement to a commission to
be the procuring efficient cause. Factors such as first showing,
introduction of the buyer to the property, comparative efforts of the
agents involved, breaks in continuity, conduct of the buyer, and when
and how the buyer made the decision to purchase, all remain relevant and
are considered along with the existence of the agency relationship or
contract, but no single factor determines entitlement to a commission.
Appendix II to
Part Ten of the Code of Ethics and Arbitration Manual contains
Arbitration Guidelines and Suggested Factors for Consideration by a
Hearing Panel in Arbitration. The Manual makes clear that there
is no predetermined rule of entitlement to a commission: "Agency
relationships, in and of themselves, do not determine entitlement to
compensation."
Agents looking to
avoid getting into a procuring cause disputes, whether working with a
contract or not, should attempt to make contact with listing
brokers before sending a buyer unaccompanied to an open house and should
educate their buyer clients regarding their obligations under the Buyer
Representation Agreement. If a buyer calls a listing agent
directly to schedule an appointment, it does not mean that the Buyer’s
Agent has lost all rights, but there is a potential that such action may
be the beginning of a transaction that ultimately leads to arbitration.
The ultimate outcome of the Arbitration will not be determined by a
single telephone contact in most cases, however better education of the
buyer might have avoided the contact which resulted in the involvement
of the second agent.
Hurry! Registration Deadline for GBAR Breakfast November 30
You've probably noticed that more and more people around the Bay State
are reading alternative publications such as free newspapers and weekly
magazines. What you may not have noticed is that many of these
publications have created special real estate sections to attract
first-time home buyers.
Are
you interested in reaching this new market? We hope so because we’ve
arranged to have representatives from three major publications unveil
new and exciting advertising opportunities at our “Breakfast with
Benefits” event. Boston Now,
Metro and the
Weekly Dig
will be announcing the new discounts especially for GBAR members on
December 7 at the Natick Courtyard Marriott from 9:00-11:00 a.m. Cost
to attend the event is free (garage parking is available). To register,
contact GBAR Communications Coordinator Christina Meehan at 617-399-7840
or via e-mail at
cmeehan@gbreb.com by November 30. You can also register online or
download a faxable registration by clicking
here.
Free, Online Commercial Source Convention Dec. 4-6
Whether you are solely a commercial real estate practitioner, or simply
interested in learning more and networking, Commercial Source has
something for you. Commercial Source is an interactive, online
convention and trade show of the REALTORS® Commercial Alliance being
held December 4-6. The event is free.
Participants will hear dynamic and inspirational professionals including
Sam Zell, Peter Linneman and NAR’s Chief Economist Laurence Yun discuss
today’s hot commercial topics. You’ll also have the opportunity to
interact with exhibitors and network with other commercial and
residential real estate professionals across the country. In fact, more
than 20,000 participants registered for this year’s event.
For
more information and to register, visit
www.commercialsource.com.
Don’t
Miss GBAR's Last CE Program of the Year!
9:30 – 11:30 a.m.
– Residential Mortgage Loan Market & Credit Today
11:45 a.m. – 1:45
p.m. – Foreclosures, Auctions & Estates
2:45 – 4:45 p.m. –
Buyer Agency
Cost: $45 single
class/$105 all day
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