SFH201 was developed by IREM to teach property management basics and would benefit the Realtor® who acquires the occasional rental client. This may be a client who can’t sell the home and decides to try renting instead. The course also serves as introduction for Realtors® and owners to familiarize themselves with real estate management and rental practices.

In the course, Realtors® will learn:

• Management agreement. Requirements for management agreements and state real estate license requirements.
• Ethics and legal Issues. Importance of ethics in property management, fair housing issues, resident-landlord and other laws related to leasing and property management, and evictions.
• Maintaining the property. Maintenance guidelines and strategies, major residential maintenance components, working with contractors, and creating a greener property.
• Financial tools. Property budgets and trust accounts, cost-benefit analysis, record-keeping and reporting systems.

This course was developed to give Realtors® an understanding of the workings of managing single family homes and small investment properties as well as maximizing the value and financial potential of the properties being managed.

This is a self-paced course. No continuing education (CE) credits are being offered by Pennsylvania for the course. If participants are an IREM member, they will receive a member discount. If participants are not currently a member, they can join IREM or pay full value for the course.

On November 29, 2011, the majority of a three-judge panel reversed a Delaware County trial court decision that the murder/suicide was not a material defect and therefore did not have to be disclosed.  Re-argument will take place before the Court, en banc.  Pursuant to internal operating procedures, the Court en banc shall consist of up to nine of its members rather than three that are ordinarily assigned to an appeal.

The Order granting re-argument was issued February 3, 2012.  It ruled that the decision filed November 29, 2011, is withdrawn.

Clearly the issue, one of first impression in Pennsylvania, is sufficiently significant to warrant consideration by the Court, en banc.  PAR, through its legal counsel Caldwell & Kearns, joined the appellants in seeking reconsideration in an amicus capacity (friend of the court).  PAR will continue to lend its support by filing an amicus brief within the briefing schedule established by Court rules.

Recently announcing their launch on Facebook, Frugyl is designed to “crowd source” information and reviews on real estate marketing products. Products and services are evaluated by Realtors® in a group forum and Frugyl then determines the “best” of any category and offers the product at discount prices exclusive to Frugyl Club members.

“Every vendor will say they have the best product and the truth is this just is not the case,” said Chief Frugylist Jimmy Mackin. “What separates Frugyl from other services is we do the leg work. Frugyl works with vendors who are highly rated by customers then works with the vendors to offer deals to Frugyl members with a 100 percent money back guarantee if they are not satisfied with the product.”

Frugyl was born out of the What Should I Spend My Money On group in Facebook which provides a forum for real estate professionals to share their experiences with services they are using to grow their business. Mackin said the group grew to nearly 3,000 participants in one month and members found it difficult to keep up with the conversations happening each week. This inspired him to create Frugyl.

However, access to the content and deals are not free. Frugyl charges $9 a month to subscribe to the service. In return, members receive a weekly digest of the forum conversations, the deal of the week and a breakdown of how it works. Members also have access to a private Facebook group along with web based training sessions on social media marketing and technology.

“The goal of Frugyl is to bring greater transparency regarding the actual return on investment that sadly often times just is not there,” he said. “It’s our mission to help you discover great products that will help you grow your real estate business, without having to spend hours a day on Facebook.”

House Bill 398 (Stevenson) requires appraisal management companies to be registered with the State Board of Certified Real Estate Appraisers. Pennsylvania is the 30th state to pass such legislation.

More appraisal management companies appeared throughout the country, as a result of the Home Valuation Code of Conduct (HVCC). The Home Valuation Code of Conduct originated from a settlement among New York Attorney General Andrew Cuomo, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac. While the HVCC was sunset, the issue of unregulated appraisal management companies remained.

“We believe this legislation is important to protect homebuyers in the Commonwealth,” said PAR President Frank Jacovini. “Research initially showed after the Home Valuation Code of Conduct was enacted, consumers were paying higher fees for appraisals that were frequently inaccurate and misrepresented the value of the property. We also saw closings being delayed as a result.”

The new law will create a level playing field for AMCs and appraisers. Appraisal management companies will now be required to work within the nationally sanctioned Uniform Standards of Professional Appraisal Practice (USPAP).

“Thanks to a collaborative group of all stakeholders providing input into this bill, this new legislation provides protection for consumers and industry participants alike,” according to Michelle Bradley, chair of PAR’s Appraisal Management Company Task Force. “Those who own or operate AMCs will be accountable to industry standards and state regulation.”

The new legislation also:

• Implements a registration and renewal fee of $1,000
• Implements a $20,000 bond or letter of credit to secure the faithful performance
• Requires all appraisal reviews to be conducted by a certified or licensed appraiser
• Requires AMCs to adopt Uniform Standards of Professional Appraisal Practice (USPAP) record-keeping rules.

Let’s face it: conflict is part of life in real estate—but good business relationships depend on the ability to work through disputes and not simply dispose of them.  We all know that Realtors^® must agree to arbitrate their complaints but the Realtor® association also provides another process that can help resolve conflicts and save relationships: mediation.

Mediation is similar to negotiation, where parties talk through issues and, perhaps, work out a solution on their own terms.  The main difference is that mediation includes a neutral third party—the mediator—to facilitate the discussions.  But this is an important difference.  Whereas negotiations can get off-track with heated emotions and one-sided bullying, a good mediator sets an agenda and ground rules for discussion, levels the playing field by controlling the parties and helps to overcome deadlocked issues.

The process is less formal than arbitration, because mediation is based on principles of voluntariness and party control. At some point in the proceedings, mediation must be made available to all parties involved in arbitrations. Generally, both parties must agree to mediate a dispute voluntarily, though a recent amendment to Article 17 of the Code of Ethics gives local associations the option to require mediation when requested by either party. During a mediation, parties may address important issues that have caused a conflict but which otherwise might not be brought before the arbitrators. And the mediator has no power to impose a judgment, like a judge or arbitrator: her role is to promote communication and help parties reach a satisfactory, creative solution.  If the parties don’t reach an agreement, either side may request that the case be returned to arbitration.  But if the parties do settle, the mediator can draft an agreement on the spot.

Contract disputes among Realtors^® tend to lend themselves naturally to mediation.  Agency, partnership, and sales issues all involve continuing relationships, as well as specialized terms, and parties can benefit from getting through these disputes without burning bridges.  In Realtor® mediations, the parties can choose a neutral who knows their industry and regional practices.  The parties can also choose how involved the neutral will be in the process and which issues to focus on.

Your local association should have a roster of specialized, trained real estate mediators who are available to handle member disputes.  If your local association participates in the statewide professional standards cooperative, PAR would provide a mediator. The mediators typically are real estate professionals or legal professionals in real estate practice, familiar with industry standards.  The process offers Realtors^® an effective and creative alternative to resolve their professional disputes, without resorting to risky arbitration.  But knowing the options is the first step: if you are involved in an arbitration case and want to know more, contact your local association, PAR or the Legal Hotline for more advice on how to move forward with a process that may help resolve your dispute quickly and effectively.

The Keystone Advantage Assistance Loan (KAAL) will provide an amortized subordinate loan of up to 2 percent of the sales price (maximum of $4,000) to qualified borrowers obtaining a PHFA first mortgage. This program will replace the agency’s Keystone Assistance and Keystone Government Assistance Loan programs.

“The Keystone Advantage Assistance Loan will allow qualified homebuyers to borrow a portion of the funds needed to cover their downpayment requirement and/or closing costs associated with the purchase of their home,” according to Kate Newton, PHFA homeownership programs director. “This loan will carry the same fixed interest rate as the first mortgage but a term of 10 years. And, there’s no prepayment penalty for paying off the Advantage loan early.”

Other requirements include:

• Assistance loans are only provided to meet maximum PHFA financing guidelines and/or closing costs
• Homebuyers must meet the requirements of the Keystone Home Loan or the Keystone Government Loan program
• May not be combined with any other PHFA assistance programs, except the Access Modification Loan Program.

Advantage loans may be used on FHA, VA or RD loans and all applicable underwriting requirements apply.

PAR President Frank Jacovini, third from left, with members of the YPN Advisory Committee

If there is one thing Realtor® Adrienne Loughery of Lansdale is passionate about in her career it’s helping to create opportunities for younger Realtors® to engage and bridge the generational gap in the real estate industry.

Loughery was instrumental in launching the Pennsylvania chapter of Young Professionals Network (YPN) to encourage more Realtors® to aid associations in technology, education, networking and leadership development. She is currently chair of the YPN Advisory Committee; a committee she says has been able to accomplish a lot in a short amount of time.

Three years ago, the National Association of Realtors® officially recognized YPN in Pennsylvania. Today, the chapter has grown its membership statewide and continues to expand its benefits to members. In response to the hard work of the original advisory board, PAR voted in September to add PA YPN as an official PAR committee. PA YPN held its first official committee meeting at PAR’s Winter Business Meetings earlier this month. Not only were the bulk of attendees at the YPN meeting first time attendees of the PAR business meetings, three members were able to attend the meeting virtually, a first for the association.  

“By organizing the state network first as primary hub of information for our members and local associations, we have been able to assist local associations and grow YPN membership,” said Loughery.

“PA YPN is for the young in age, young in experience and young at heart. We want people of all ages to attend our events. By focusing on hosting and facilitating social opportunities for members to network and learn from one another, we have helped to enhance the value of Realtor® membership,” she added.

With over 244 combined chapters at the local and national level, YPN not only establishes networking and educational opportunities for Realtors® but also works to raise awareness for RPAC, Calls to Action and membership recruiting.

“We are making good use of the opportunities we have been given and we hope it continues,” she said. “Our members are in key positions and continue to push the agenda of PAR. We love the association as much as we love YPN.”

Among the goals PA YPN hopes to accomplish are to get second generation leaders involved. They plan on continuing to provide social and educational opportunities for members to network and learn from one another. The group has several events planned for the future including a statewide softball tournament where local associations will compete against one another. All proceeds will benefit the Realtors® Relief Fund.

The YPN Advisory Committee is currently looking for dedicated Realtors® to join its 2012 work groups. Realtors® do not have to be a member of YPN to participate. Each work group is limited to six participants, with some positions already filled by YPN Advisory Committee members. 

Visit PAR’s website for a complete list of work groups including duties and responsibilities. Members are also encouraged to join PA YPN’s Facebook group.

Melissa Sieg from the Centre County Association celebrates their award.

Local associations’ 2011 fundraising efforts for the Realtors® Political Action Committee (RPAC) were celebrated during the RPAC Awards Luncheon last week in Harrisburg. Investments in RPAC totaled $492,888 last year. More than 160 PAR members attended to mark the annual recognition event as RPAC Chair Ron Croushore announced the fundraising achievements.

In the first category, local associations were recognized for the total percent of their goal achieved. The goal is determined by multiplying membership counts on April 15 by $15, the fair share amount determined by NAR. Associations receiving awards included:

Small Association Category
First Place: Bradford-Sullivan Association with 235%
Second Place: Greater Meadville Board with 193%
Third Place: Cambria-Somerset Association with 180%

Medium Association Category
First Place: Centre County Association with 297%                  
Second Place: Schuylkill County Board with 180%
Third Place: Butler County Association with 165%                                

Large Association Category
First Place: Greater Harrisburg Association with 172.85%
Second Place: Realtors® Association of York and Adams Counties with 171.35%
Third Place: Reading-Berks Association with 137%                                  

Extra Large Association Category
First Place: Lehigh Valley Association with 195%
Second Place: Montgomery County Association with 184%
Third Place: Realtors® Association of Metropolitan Pittsburgh with 149%                        

The second category recognized was highest membership participation:                   

Small Association: Bradford-Sullivan Association with 86%
Medium Association: Pike/Wayne Association with 74%
Large Association: Realtors® Association of York and Adams Counties with 35%
Extra Large Association: Lehigh Valley Association with 37%

The following associations achieved 50% participation: Allegheny Highland Association, Cambria Somerset Association, Elk-Cameron County Board, Fayette County Board, Greater Allegheny-Kiski Area Board, Greater Meadville Board, Greater Scranton Board, Lawrence County Board, McKean County Association, Mifflin-Juniata County Board, North Central Penn Board, Warren County Board, and West Branch Valley Association.

Special recognition to the associations that raised the most dollars during the 2011 fundraising year:

Small Board: Cambria-Somerset Association with $4,919 raised
Medium Board: Centre County Association with $14,627 raised
Large Board: Greater Harrisburg Association with $37,958 raised
Extra Large Board: Suburban West Realtors® Association with $90,310 raised

The RPAC Trustees set the 2012 fundraising goal at $550,000.

Obama proposed a new program to help Americans hold onto their homes and allow them to refinance their mortgages at historically lower interest rates. He offered few details on the plan but estimated savings of about $3,000 a year for average borrowers.

“While government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief,” he told the gathering of attendees including lawmakers, government leaders and invited guests.

“That’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year in their mortgage, by refinancing at historically low interest rates. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit and will give banks that were rescued by taxpayers a chance to repay a deficit of trust,” he added.

As the housing crisis takes center stage in the campaign, Obama also referenced the challenges businesses face in a difficult economy.

“An economy built to last is one where we encourage the talent and ingenuity of every person in this country,” he said. “It means we should support everyone who’s willing to work and every risk-taker and entrepreneur who aspires to become the next Steve Jobs.”

The center of Obama’s address focused on improving the economy and restoring the American dream. He spoke of restoring basic goals such as owning a home, earning enough money to raise a family and putting money away for retirement.

He followed up Tuesday night’s address with a three-day tour of five states ending today in Michigan. Polling shows Americans are divided about Obama’s overall job performance but unsatisfied with his handling of the economy. His speech Tuesday comes just a few days before the Florida Republican primary that could help set the path for the rest of the race.