Announcements

CBR Election Results!

The votes are in for our first-ever online voting process. 2,069 REALTORS ® and 76 Affiliates voted this year versus 1,485 and 63 respectively in 2005. 2,065 said they were pleased with the new online voting procedure (43 said No and 37 Abstained).

Congratulations to the following members elected to the CBR Board of Directors. (FYI: Election of the President-Elect as President is automatic. The officers are elected by the Board of Directors.)

President
Brad Bennett, HER Real Living

President-Elect
Greg Hrabcak, Group One Realty

Treasurer
Gary Parsons, Cam Taylor Co. Ltd., REALTORS®

Secretary
Sue Lusk-Gleich, Keller Williams Capital Partners

3-yr Directors
Gloria Cannon, Coldwell Banker King Thompson
Milt Lustnauer, RE/MAX Premier Choice
Lari Madosky Shaw, Coldwell Banker King Thompson
Linda Whiting, HER Real Living

Affiliate Director
Mike Troutman, Ohio Savings Bank

Commercial Section Election -- Ballots and voting information for the Commercial Section positions will be mailed to Commercial Section members in mid December. Results will be posted on the web site and included in the January magazine.

MLS Election -- Ballots and voting information for election of new MLS Committee members was to be mailed on or about Nov. 30 and returned by December 15th. Results will be posted on the web site and included in the January magazine.

CBR awarded two grants

The Columbus Board of REALTORS® has been awarded two grants from the National Association of REALTORS®:

The State and Local Association Diversity Initiative Grant for the Board's Equal Opportunity Committee project, which partners CBR with the African Community Organization to provide language and cultural training to REALTORS® and home buyer training to members of the African communities. The amount of the grant is $5000.

The other grant received is the State and Local Initiative Fund Grant in the amount of $4,000 for the Affordable Housing Committee's Super Sunday Affordable Housing Open House project. CBR was the only Board to receive full funding.

ODRE Updates Disclosure Form

The Residential Property Disclosure form has been revised by the Division of Real Estate to include mandatory language regarding the availability of information on the operation and maintenance of the property's sewage system.

Although agents are not required to begin using the revised form until January 1, 2007, you may begin using it immediately. It is not necessary to have sellers complete the revised form for properties that were listed prior to January 1, 2007, however, if a listing is extended or re-listed after that date, the new form should be used.

The new form will be posted on the web site and incorporated into our online forms program as soon as it is available.

Join a CBR Committee!

The Columbus Board of REALTORS® provides programs and services based on member input received through its 30 committees. Would you like to get involved and serve your industry as well as yourself? Then, sign up for a committee. The 2007 Committee Registration is inserted in this magazine. Please complete the form and submit to CBR.

Remember, in order to qualify for the CBR Million Dollar Club, you must fulfill the service requirement - serving on a CBR committee (and meeting its attendance requirement) or serving as an officer in a real estate related organization.

Apply for the Volunteer Service Award

Did you serve on any CBR committees this year? Were you involved in any area association projects? Did you donate blood, contribute to CORPAC or volunteer for any community-oriented programs? If so, you may have already accumulated the 10 points needed to qualify for CBR's Volunteer Service Award.

This award celebrates volunteerism! Everyone who qualifies will receive an award and be recognized at CBR's Forecast Night on January 18, 2007. Members can only receive this award once. To apply, please complete the Volunteer Service Award application included as an insert in this issue of the magazine. Deadline: Friday, December 15.

Dues are due January 1, 2006

Annual dues renewal invoices were e-mailed to members in early November. Second notices mail December 9. As members, you may pay the total amount due or the detailed charges by 01/01/06. If you choose to pay the detailed charges only, the balance of the 2006 dues will be invoiced in April.

The Tax Reform Act of 1993 made the portion of dues paid to organizations which is spent to lobby the state and federal government nondeductible for income tax purposes. For the year 2006, the nondeductible portion of OAR dues is $18; NAR dues is $14; and CBR is $0 as CBR does not lobby state and federal government. Contributions to the Central Ohio REALTORS® Political Action Committe (CORPAC) are not tax deductible.

New Commercial Forms

Two new commercial forms were approved in October. The new forms will be included in the PCF online forms and available for sale in the Member Service Center in mid-December:

Real Estate Purchase Contract -- Commercial Land
8-page contract _^l $10.00/set of 4 pads (30/pad)
Real Estate Purchase Contract - Industrial - Investment -- Commercial
6-page contract ^l $9.00/set of 3 pads (30/pad)

Commercial Awards

Attention C/I members?If you've had a good 2006, send in your application for one of the following commercial awards: Top Producer (top 10 selected); Most Unique Transaction; Largest Transaction; Rookie of the Year; and/or 1031 Exchange Award. Deadline for submission is December 14, 2006. Awards will be presented during Forecast Night, Thursday, January 18, 2007 at the Columbus Hilton at Easton.

Auditor's Commercial and history data now available online

The Auditor's commercial real estate property data and real estate parcel sheet history information is now available on the Franklin County Auditor's web site, www.franklincountyauditor.com. The commercial real estate information includes building characteristics, including square footage. Real estate parcel sheets include ownership history and both land and building tax value information dating back to 1920.

Parcel sheet history was originally documented and hand written in large parcel books. These records have now been completely computer scanned, stored in a database and added to the current ownership history which has been available online since 1999.

To access the commercial property information, enter the parcel, address or owner's name in the property search program. Then select "commercial" from the left-side menu.

To access the parcel sheet history, enter a parcel number, address or owner's name in the property map program. Then select "parcel history" from the left-side menu, and the time period you wish to view.

Those without access to the Internet can call the Auditor's Real Estate Information Line (462-HOME).

Persuading an Appraiser to Reach a Certain Value? -- It's a Felony!

SB 185 -- the much proclaimed "predatory lending" bill -- imposes significant consequences for those who attempt to persuade an appraiser to reach a certain value when appraising real property. Under Ohio Revised Code Section 4763.12(E), it is a fifth degree felony for anyone to directly or indirectly compensate, instruct, induce, coerce, or intimidate a licensed or certified appraiser, for the purpose of corrupting or improperly influencing the independent judgment of the appraiser with respect to the value of the dwelling offered as security for repayment of a mortgage loan.

What can you give me in return for a Referral?

A common question real estate brokers ask the Division of Real Estate is what, if anything, may be given to unlicensed persons for referrals of business to the broker under Ohio law.

Under Ohio Revised Code 4735.20, a licensed real estate broker may not pay a commission, fee, or other compensation to any person who is not a licensed real estate broker or a licensed real estate salesperson for performing any of the acts specified in R.C. 4735.01. Directing or assisting in the procuring of prospects which is calculated to result in the sale of real estate is among the acts provided in R.C. 4735.01(A)(7). Therefore, a broker may not provide any compensation to an unlicensed person for assisting in the procuring of prospects, or in other words, making a referral.

"A commission, fee, or other compensation" includes theater tickets, gift certificates, gift cards, cash, etc?. Sending a "thank you" card or a bouquet of flowers is permitted as this would be considered de minimus. However, giving something of substantive value to an unlicensed person would be considered a license law violation.

One of the primary exceptions that permit compensation to be paid to unlicensed persons for referrals is under R.C. 4735.20(B) which provides that a licensed real estate broker or licensed foreign real estate dealer may pay a commission to a licensed real estate broker or licensed foreign real estate dealer of another state. Specifically, O.A.C. 1301:5-5-06 provides that "a licensed real estate broker of this state may pay a commission or referral fee to a licensed real estate broker of another state who refers clients or prospects to the Ohio real estate broker."

Another question is whether a referral fee paid to a licensed salesperson must be paid to the salesperson's broker or may the broker pay the salesperson directly. R.C. 4735.21 provides that no salesperson may collect any money in connection with a real estate transaction except in the name of and with the consent of the licensed real estate broker with whom he or she is affiliated. Therefore, any referral fees must be paid to the salesperson's broker. Even if compensation for referrals is in the form of a gift certificate or gift card, such compensation should be directed to the salesperson's broker who may remit the compensation to the salesperson.

Area Association giving back to the community . . .

WCR (Women's Council of REALTORS®)kickedoff the year with a bang with Franklin County Auditor Joe Testa discussing Tax vs. Market Value. This event, which drew more 100 industry professionals, was held at the Columbus Museum of Art. Other highlighted programs were "Success with HUD" with CE at Scioto Downs with over 150 in attendance, and our Elegant Champagne and Diamonds event where we gave away a one-carat diamond! We also supported the Center for New Directions with donations of women?s business attire, the Grove City Food Bank, CORPAC, and the Affiliate Appreciation luncheon.

Can you transfer an appraisal report to a different client?

Scenario: The appraiser performs an appraisal assignment for Client A. After the assignment has been completed, the appraiser is contacted by Client B. Client B asks the appraiser to "transfer", or "re-address" Client A's appraisal to Client B. May the appraiser "readdress" or "transfer" a report by changing the client name or adding an intended user to the report originally completed for Client A?

Appraisers are often faced with this situation. In 2004, the Appraisal Standards Board (ASB) of the Appraisal Foundation began addressing this subject in Advisory Opinions, which offer clear guidance on the matter. An excerpt from Advisory Opinion 26 of USPAP, effective July 1, 2006, provides, "[o]nce a report has been prepared for a named client(s) and any other identified intended users and for an identified use, the appraiser cannot "re-address" or "transfer" the report to another party."

The appraiser has no ownership of the appraisal report once they submit that appraisal to their client. The client controls the document, not the appraiser. USPAP also addresses the subject of appraising the same property for a new client in Advisory Opinion 27. It is necessary that the appraiser use these available tools to ensure compliance with the USPAP Standards Ethics Rule Confidentiality section, which provides in part that, "[a]n appraiser must protect the confidential nature of the appraiser-client relationship." For further guidance on this matter, see USPAP Advisory Opinions 25, 26 & 27, and the USPAP Standards Ethics Rule Confidentiality section.

(From the Ohio Division of Real Estate & Professional Licensing Fall 2006 Newsletter)