Illinois REALTOR® January 2016 by Illinois REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

www.illinoisrealtor.org

JANUARY 2016

THE OFFICIAL PUBLICATION OF THE ILLINOIS ASSOCIATION OF REALTORS速

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CONTENTS JANUARY 2016

Meet 2016 IAR President

Mike Drews leads the Illinois Association of REALTORS® as it celebrates 100 years of service to our members and dedication to our core principles of advocacy, ethics and education. Read how he wants to celebrate IAR’s past and build toward its future.

MIKE DREWS

Photo credit: Michael Hudson Photography. Mike Drews was photographed at the historic Paramount Theatre in his hometown of Aurora, Ill.

p. 9

ABOUT THE COVER To kick off IAR’S 100th anniversary, we asked you to send us your photos and 634 of you did! Add in the photos of every IAR president and others important to IAR history and you have a collage of the many people who have helped make IAR 100 years strong.

Departments 5 President’s Message: 6 Quick Takes 26 Legal Update 30 At the Capitol 33 RVOICE 35 Citations 36 Tech & You 38 REALTOR® Community

ILLINOIS ASSOCIATION OF REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

Features

12 19 20 22 24 34

IAR: 100 Years in the Making Quiz: Do You Know Your IAR History? IAR 100th Anniversary Task Force: A Year of Planning, a Year of Celebration Ahead Sharing a Lifetime of Learning Illinois REALTORS® Have a Heart for Helping IAR to Represent the State at International Real Estate Conference

39 Market Watch

ILLINOIS REALTOR® January 2016

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(3 hrs. elective) License #564001798, Item #613

COR 1631 - Illinois Core A and Core B

ETH 1515 - Code of Ethics

(3 hrs. core A and 3 hrs. core B)

(3 hrs. elective) #564002399, Item #650 Qualifies for the NAR Quadrenniel Ethics Requirement

Broker Post-License

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COR 1654 - Fair Housing, Agency, License Law & Escrow

(3 hrs. core A) License #564001718, Item #647

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Feb. 9 & 10 $159, Instructor Lynn Madison

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Purchase Online CE, Home Study CE and register for Webinars online at:

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April 19 & 20 $159, Instructor Norm Willoughby

Email: education@iar.org Phone: 1-800-523-5077

* A proctored exam (online with Package #1 or on-site with Package #2) is required for any home study or online course in the State of Illinois. If licensed on or after Feb. 1, 2016, you are not required to complete any CE or post-license course work until April 30, 2018.

IAR Licensing & Training Center Real Estate Licensing & Continuing Education The IAR Licensing & Training Center is your TRusTed souRCe for state-approved education.

2016

BROKER LICENSE ReNeWAL

PRESIDENT’S MESSAGE Mike Drews | GRI, 2016 IAR President

EARLY VISION BY PIONEERS ENDURES DUE TO WORK BY COMMITTED VOLUNTEERS 1916 was a memorable year for many reasons. Europe was engulfed in conflict, and the U.S. was poised to send troops to fight in World War I. On the home front, the Chicago Cubs played their first game in what was to become Wrigley Field, and my beloved White Sox came in second in the American League. Notably, a small but committed group of REALTORS® began charting the course of an association which would represent the fast-growing real estate industry. At the time, IAR’s principal founders, Joseph K. Brittain and William C. Johnson, knew the industry needed a strong advocate to protect private property rights, promote professionalism and ensure REALTORS® had a voice in state government. Their pioneering work — and the efforts of tens of thousands of others over the decades — grew IAR into a model of how an association can successfully meet members’ needs against a backdrop of constant change. I can’t help but be more than a little awed of how this organization was largely responsible for creating the state’s license law and mandating professional development for brokers, all while looking out for the legislative, educational and legal interests of our now 43,000 members. IAR’s 100th anniversary gives us a chance to reflect on the service of so many members over the years who had the vision to make the state’s real estate industry better for REALTORS® and their clients. Their legacy of hard work continues today, providing a guarantee that the REALTOR® name stands for professionalism and comprehensive market knowledge. It’s going to be a great year, followed I am sure by many more. Here’s to the next 100 years,

“IAR’s 100th anniversary gives us a chance to reflect on the service of so many members over the years who had the vision to make the state’s real estate industry better for REALTORS® and their clients.” — Mike Drews

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Advocacy • Educat ion • Ethics

201

The Illinois Association of REALTORS® 2016 Board of Directors outside the IAR headquarters.

IAR helped honor Illinois REALTOR® Vicky Silvano, who was installed as the national chairwoman of the Asian Real Estate Association of America (AREAA) in San Francisco. From left, IAR Immediate Past President Jim Kinney, IAR President-elect Doug Carpenter, Silvano, IAR President Mike Drews and IAR CEO Gary Clayton.

ILLINOIS REALTOR® January 2016

QUICK TAKES More REALTORS® Working with International Clients; Sales Dollar Volume Climbs Higher

The estimated total sales dollar volume of real estate sold to international clients between April 2014 and March 2015 was $104 billion, a 13 percent annual increase, according to NAR’s 2015 Profile of Home Buying Activity of International Clients. Thirty-five percent of REALTORS® worked with an international client, up from 28 percent in the previous survey. And while overall transactions with international clients were down 10 percent, the higher dollar volume suggests those who were in the market were buying more upscale properties, according to NAR. This NAR infographic offers more insight on where international buyers are coming from and their purchasing patterns.

1.4

MILLION

The typical sales volume for an Illinois real estate agent in 2014. Source: 2015 Illinois Member Profile

ON THE

MOVE?

Source: National Association of REALTORS® 2015 International Profile. Used with permission from the National Association of REALTORS®

HUD Changes Rules on FHA Condo Policies In late 2015, the U.S. Department of Housing and Urban Development (HUD) announced it will ease its restrictions on Federal Housing Authority (FHA) condominium financing rules, making it easier for consumers to get FHA financing when buying a condo. Read more from HUD at http://portal.hud.gov/hudportal/HUD

6 www.illinoisrealtor.org

Almost half (48 percent) of all adults surveyed by the Urban Land Institute for the “America in 2015” survey said they are somewhat or very likely to move in the next five years. That included Millennials looking to transition from renters to homeowners and older Americans who would be looking to downsize. Nearly three-fourths (73 percent) of those surveyed said buying a home is a good investment. Read the full survey, “America in 2015,” which includes consumer preferences on community amenities and priorities, transportation trends and housing affordability. http://uli.org/wp-content/ uploads/ULI-Documents/ America-in-2015.pdf

And the winners are…

Illinois REALTORS® are industry leaders and IAR congratulates those recognized at the national level for their contributions to real estate. The following Illinois REALTORS® received awards at the National Association of REALTORS® (NAR) Conference & Expo in San Diego in November.

DOWNLOAD THE IAR LEGISLATIVE SCORECARD IAR’s Governmental Affairs team is fighting for your business interests in Springfield, lobbying for legislation that benefits private property rights and blocking bills that will hinder the real estate industry. The 2015 Legislative Scorecard highlights the Top 10 issues that dominated the REALTOR® agenda, from pushing for restrictions on onerous “crime free” rental ordinances to stopping mandatory sewer video inspections prior to a home sale.

Daniel L. Goodwin,

Jean Crosby,

Jim Kinney,

chairman and CEO of The Inland Real Estate Group, Inc. in Oak Brook, was honored as a recipient of REALTOR® Magazine’s 2015 Good Neighbor Award.

partner and owner of Berkshire Hathaway HomeServices Crosby Starck Real Estate in Rockford, received the National Association of REALTORS® 2015 Distinguished Service Award.

vice president of luxury home sales for Baird & Warner in Chicago, received a 2015 Senior Real Estate Specialist (SRES) Outstanding Service Award.

Download the scorecard and learn more about how IAR is fighting for you. http://bit.ly/1QGAwDP

Michael Rickert, owner of Rickert REALTORS® in Des Plaines, was also honored with a 2015 Senior Real Estate Specialist (SRES) Outstanding Service Award.

Christopher Tenggren, broker with RE/MAX Great American North in St. Charles, was awarded the 2015 EverGreen Award from NAR’s Green REsource Council.

HOME REMODELING TO INCREASE IN 2016 As the housing market has strengthened, expect U.S. homeowners to invest more money in remodeling improvements in 2016. Home improvement spending is forecast to grow from 2.4 percent in the second quarter of 2015 to 6.8 percent in the second quarter of 2016, according to the Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Read more at http://www.jchs.harvard.edu

ILLINOIS REALTOR® January 2016

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2016 IAR President

MIKE DREWS

Celebrating THE

PAST ; Building

Future THE

By Stephanie Sievers | Senior Editor

s the Illinois Association of REALTORS® celebrates its 100th anniversary, Mike Drews, who leads IAR as its president this year, embodies many of the qualities that have made the organization strong: a commitment to professionalism, political advocacy and personal involvement. “I’ve been actively involved in the REALTOR® organization for my entire real estate career. It’s an incredible honor to serve as IAR’s president in 2016 as we celebrate all that we have accomplished and look ahead to all that we can do,” said Mike Drews, GRI, a broker-associate at Charles B. Doss & Co. in Aurora. This 37-year real estate veteran draws on his experience in building a sense of community, whether it is in his hometown of Aurora or in the REALTOR® association. Drews initially earned a degree in recreation and park administration from Western Illinois University and had worked for a few local park districts. He changed career paths after a conversation at a Christmas party in 1978. Marvin Pilmer, an Aurora REALTOR®, asked him if he had ever thought about getting into real estate and the idea stuck. Drews took him up on the job prospect, enrolled in real estate courses and was a licensed agent working for Pilmer the following year. In 1986, he went to work at Charles B. Doss & Co. in Aurora, where he has been a brokerassociate focusing on residential sales for 30 years. Managing broker and friend, Charlie Doss, said his regard for Drews has only grown over the years. “He’s very serious about the business and has the work ethic that nothing is satisfactory unless it is the very best it can be,” Doss said.

Photo credit: Michael Hudson Photography

ILLINOIS REALTOR® January 2016

“When we go and sit and talk to our city council, our city managers, our state legislators, our congressmen in Washington, they all understand our efforts and how important it is for us to protect private property rights. We need every REALTOR® to be a part of that; to be part of the cause, to act, Photo credit: Michael Hudson Photography

to vote and to invest.” — 2016 IAR President Mike Drews

“He is a good leader with respect to other people both inside and outside the company. I’ve witnessed many times people from other offices calling Mike for advice and suggestions. They contact him because they respect his knowledge and logic,” Doss added. Drews has strong ties to Aurora, where he has lived since he was 10. His parents were volunteers and their service created a legacy that Drews continues with his long-time involvement in Aurora’s Noon Rotary Club, his local church and other groups. The commitment to volunteering carried over to his real estate career. As soon as he got into the business, Drews got involved with his local REALTOR® associations. He is a past president of the Mainstreet Organization of REALTORS® (MORe), was honored as MORe’s REALTOR® of the Year in 2011 and was named REALTOR® Associate of the Year in 1990 by the Greater Aurora Association of REALTORS®. He’s on the National Association of REALTORS® Board of Directors and is again serving on NAR’s Professional Standards Committee and REALTOR® Party Member Involvement Committee. At the state level, you’d be hard pressed to find a committee or working group that he hasn’t been a part of over the years. “It was just natural to get involved in activities within the association,” Drews said. “I’ve always felt that if you belong to an association, whatever it might be, doing things for that association is part of giving back.” IAR President-elect Doug Carpenter, who has known Drews through their involvement with MORe and IAR, said Drews has built a reputation in the REALTOR® organization as someone willing to work on tough issues. Carpenter said that is particularly evident in the area of professional standards, where Drews is known as a “goto” source of information on ethics and professionalism. Drews is a three-time chair of the IAR Professional Standards Committee and has served repeated appointments to NAR’s Professional Standards Committee. Drews first got interested in professional standards when he served on a committee through his local association and sat on ethics hearings. As someone who makes decisions by gathering information and weighing all sides of an issue, it seemed like a good fit, he said. Drews is also known for his involvement in the association’s advocacy efforts, a commitment that earned him the IAR Political Involvement Award in 2011. Although he didn’t consider himself a particularly political person and has no aspirations to ever run for political office, Drews has built strong ties to elected officials. 10 www.illinoisrealtor.org

He is the Federal Political Coordinator for U.S. Rep. Randy Hultgren and is the State Legislative Contact for State Rep. Keith Wheeler. Drews says his political advocacy is a natural outgrowth of the relationships he first built in the Aurora community. Local officials often looked to him as a resource on local real estate issues and that morphed into advocacy on other levels. But of all his accomplishments, Drews says his greatest is his family. He and wife Kay, a registered nurse, are the parents of two adult children, Megan and Patrick, both of whom live nearby with their families. In fact, with everyone living within six blocks of each other, most weekends involve family gatherings, Drews said. It also allows them to dote on three granddaughters: Emma, Reese and Layla.

Build on Advocacy Successes In his inaugural speech, Drews outlined the three core priorities of his year as the association’s president: advocacy, ethics and education. IAR is a recognized industry leader when it comes to its governmental affairs and advocacy efforts and Drews wants to build on that success. The Call for Action system is a powerful way for REALTORS® to directly — and easily — contact lawmakers at the state and federal levels on issues important to the industry. Illinois REALTORS® increased their participation in Calls for Action in 2015 and Drews wants to see that culture of advocacy grow this year. Drews also wants to increase member participation in the REALTORS® Political Action Committee (RPAC). He said it’s important for all Illinois REALTORS® to understand how much their support of RPAC means to the association’s political advocacy success. “When we go and sit and talk to our city council, our city managers, our state legislators, our congressmen in Washington, they all understand our efforts and how important it is for us to protect private property rights,” Drews said. “We need every REALTOR® to be a part of that; to be part of the cause, to act, to vote and to invest”

Strive for Excellence in Ethics and Professional Standards Promoting the highest standards in professionalism has long been one of Drews’ priorities as evidenced by his years of championing the issue at the local, state and national association levels. IAR has already made great strides when it comes to putting professionalism at the forefront with its

Mike Drews and his wife Kay arrive at the IAR Inaugural Gala in Oak Brook, where he and the rest of IAR’s 2016 leadership team were sworn into office in October.

10 Questions with MIKE DREWS What is your leadership style? I’m a quiet leader. I present the facts and look at both sides of the issue. What is the best real estate advice you ever received? You will never succeed in this business. I’ve never liked being told I can’t do something. Photo credit: Michael Hudson Photography

professional standards seminars and its new Ethics Citation Program and IAR Ombudsman Program. IAR will continue to find ways to educate its members about the right way of doing business. “I’d love to raise the level of professionalism in the state of Illinois so that we don’t have to deal with Code of Ethics violations and arbitration requests. It would be great if we had a system where everybody played above the rules,” Drews said.

Educating for the Local Market and Beyond On the education front, an early priority in the year is the April 30, 2016 deadline for broker license renewal. The renewal requirements vary depending on when a broker was licensed so anyone with questions can learn more from the IAR Licensing & Training Center at www.illinoisrealtor.org/2016brokerrenewal. In 2015, IAR partnered with several local associations to offer courses for the Certified International Property Specialist (CIPS) designation and Drews would like to see more REALTORS® earn their CIPS. He says IAR is also lucky that top leaders with the Asian Real Estate Association of America (AREAA) and the National Association of Hispanic Real Estate Professionals (NAHREP) hail from Illinois — something will help IAR forge even stronger relationships with the two organizations. The global focus continues this spring when Drews and other IAR representatives will again attend MIPIM, an international real estate conference in France, to promote Illinois as a place for international real estate investment. (Read more about the MIPIM conference on page 34 of this issue.) The modern real estate market is truly global and building international relationships and promoting all that Illinois has to offer will help Illinois REALTORS® and the state’s real estate market, Drews said.

2016 IAR LEADERSHIP

PRESIDENT Mike Drews, GRI

Broker-Associate with Charles B. Doss & Co. in Aurora

What has been your greatest accomplishment, personally or professionally? My close-knit family. What is your favorite part of the real estate business? Listing a property. If you weren’t a REALTOR®, what would your other dream job be? A forest ranger in the Rocky Mountains of Colorado. What do you like to do in your free time? I enjoy gardening, landscaping and spending time with my family. What is your favorite vacation destination? Prescott, Arizona. What’s the last good book you read? “Sting of the Drone”, a thriller by counterterrorism expert and novelist Richard A. Clarke. What’s the last good movie you saw in the theater? “Titanic” in 1997. Seriously. My wife and I usually wait until movies come out on television. What’s something people would be surprised to know about you? I can’t tell you that. They will just have to find out.

www.illinoisrealtor.org/officers

PRESIDENT-ELECT Doug Carpenter,

ABR, AHWD, SFR Managing Broker of Coldwell Banker Honig-Bell in Orland Hills

TREASURER Matt Difanis, ABR

Co-owner of RE/MAX Realty Associates in Champaign

IMMEDIATE PAST PRESIDENT Jim Kinney, ABR, CRB, CRS, GRI, SRES Vice-President of Luxury Home Sales for Baird & Warner in Chicago

ILLINOIS REALTOR® January 2016

IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

#IAR100YearsStrong

The Illinois Association of REALTORS®:

191

Years in the Making 191

Advocacy • Educat ion • Ethics

201

Step back 100 years and the goals laid out by the founders of the Illinois Association of REALTORS® (IAR) aren’t much different than those of today: form a united front to advocate the legislative issues affecting the industry and promote high standards and ethics in the profession. The Illinois Association of REALTORS® celebrates its 100-year anniversary in 2016 and with that milestone comes recognition of the organization’s evolution into a 43,000-member industry advocate. “It’s an honor to lead the Illinois Association of REALTORS® this year as we mark a century of progress that has shaped the association into the industry advocate that

Advocacy • Educat ion • Ethics

By Stephanie Sievers | Senior Editor

it has become,” said 2016 IAR President Mike Drews, GRI. “What began as an idea among a small number of forwardthinking individuals has grown into the leading voice for ® 6 Illinois1REALTORS and property owners.” 20 In the early 1900s when the association was formed, the Illinois real estate industry was booming. Construction was strong, financing was cheap and it seemed as if everyone wanted to get into the business. With missions of increasing professionalism and fighting for government issues important to the business, more local and state real estate boards were being formed nationwide.

“To unite brokers, agents, dealers and owners for the purpose of formulating, promoting and enforcing a high standard of ethics with relation to transactions in real estate, and to watch over and concern itself in all matters for the betterment and protection of real estate interests.” — 1916 IAR Mission Statement Below: The Illinois REALTORS®’ Association Seventh Annual Convention in Moline, 1923

12 www.illinoisrealtor.org

Enforcement of a Code of Ethics

•

Support of a tax amendment

•

Promotion of good roads

•

Appointment of a committee to secure legislation requiring an exam for those entering the real estate profession and payment of a state license fee.

The initial dues were $1 per member, with an additional initiation fee of $1. After holding its first annual convention the next day on June 14, 1916, the early

William C. Johnson Frank S. Horner President Vice President (Danville) (Rockford)

Joseph K. Brittain Secretary (Chicago)

Orris Hart (Chicago)

Henry G. Zander Vice President (Chicago)

IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

•

IAR’s First Board of Directors

#IAR100YearsStrong

Chicago created the second local real estate board in the country in 1883 and in 1908, the National Association of Real Estate Exchanges was formed. In Illinois, Danville and Rockford had created local boards (in 1912 and 1913 respectively) and seven state associations had been formed in California, New York, Wisconsin, Ohio, Indiana, Michigan and Iowa. There was a growing recognition at the Chicago Real Estate Board that Illinois needed a unified voice at the state level to shape tax policy in Springfield and better enforce the professional ethics and standards needed in the burgeoning real estate industry. The idea took hold among the founding boards of Chicago, Danville and Rockford, and on April 25, 1916, the Articles of Incorporation creating the Real Estate Association of Illinois were approved by the Illinois Secretary of State. The original mission statement sets forth the principles that have guided the association through its first century. “To unite brokers, agents, dealers and owners for the purpose of formulating, promoting and enforcing a high standard of ethics with relation to transactions in real estate, and to watch over and concern itself in all matters for the betterment and protection of real estate interests.” On June 13, 1916, the newly formed Real Estate Association of Illinois met for the first time at the Chicago Real Estate Board office. The association’s first officers and board of directors representing Chicago, Danville, Rockford, Champaign and Peoria were elected and they quickly voted on four bylaw resolutions:

Paul Steinbrecher (Chicago, then president of the Chicago Real Estate Board)

Edward S. Judd Walter G. Causey George H. Taylor (Chicago, 1912 presi(Peoria) (Chicago) dent of the National Association of Real Estate Exchanges) Not pictured: S.K. Hughes Vice President (Champaign) Newton B. Lauren (Chicago)

ILLINOIS REALTOR® January 2016

#IAR100YearsStrong

EARLY LOCAL BOARDS IN ILLINOIS Chicago 1883 **National Association of Real Estate Exchanges 1908 Danville 1912 Rockford 1913 **Real Estate Association of Illinois 1916 Champaign County 1917 Oak Park 1917 Moline / Rock Island 1919 IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

East St. Louis 1920 Evanston 1920 Galesburg 1920 Peoria Area 1920 Harvey 1920 Aurora 1921 Bloomington Normal 1921 Chicago Heights 1921 Decatur 1921 DuPage County 1921 Lake County 1921 Quincy 1921 Joliet 1921 North Shore 1921 Springfield 1921

leaders got to work. President William C. Johnson, of Danville, and Secretary Joseph Brittain, of Chicago, traveled the state, often at their own expense, over the next few years building support and membership for the new organization.

Early Growth and Success

In its first five years, there was a burst of activity as local real estate boards organized and joined the state organization. By 1921, the association boasted 1,500 members and 24 local boards. With greater numbers came greater influence and early legislative power. In 1921, the Chicago-based organization, which had since changed its name to the Illinois REALTORS® Association, won its first legislative victory on a property rights issue when it stopped a rent control bill that would have allowed municipalities to create commissions to set rental prices to address post-World War I housing shortages. Another early victory was the association’s support of a major zoning law that established residential and business zones in communities that chose to adopt zoning. The measure was originally pursued by the Chicago Real Estate Board, but the statewide organization helped ensure successful passage in Springfield. Clearer zoning rules meant higher and more stable property values. But one legislative victory would have an even greater impact on the industry: the creation of the state’s first real estate license law. Enforcing professionalism and ethics and weeding out undesirable brokers were among the association’s founding priorities. On June 29, 1921, the Illinois General Assembly approved the Broker’s License Act of Illinois with the new law to take effect on Jan. 1, 1922. The license law established professional standards and required that real estate brokers or real estate agents would have to register with the state. The new law set up renewal guidelines, an annual renewal fee of $10, outlined the process for license revocation and required licensees to carry a pocket card. Initially all state licenses were reviewed, issued and revoked by a three-person

committee made up of REALTORS® Johnson, Brittain and Walter J. Ruediger of Belleville. In 1923, the association changed its name to the Illinois Association of Real Estate Boards (IAREB), a name it would carry for nearly 50 years. On its 10th anniversary, membership climbed to 50 local boards and the association’s operating budget had grown to $12,000. In 1928, Chicago REALTOR® Henry G. Zander, one of the state association’s founding board members, became the first IAREB member to serve as president of what later became the National Association of REALTORS®.

The Great Depression and Near Failure

If the first decade of IAREB was marked by rapid growth and political and regulatory success, its second decade was shaped by the Great Depression. The slowing economy, stock market crash of 1929 and bank closures sent the nation and Illinois into a financial tailspin and the once thriving housing market collapsed. Home values plummeted, unemployment soared and many lost their homes to foreclosure. With consumers unable to buy homes, real estate agents could no longer afford to pay board dues. Local real estate boards began to disband and by 1931, the number of active local Illinois boards had fallen from 57 to 25. The hardship was keenly felt at the state association. The IAREB struggled to collect dues and even a decision to lower dues from $5 to $3 did little to stabilize finances. The number of registered brokers in Illinois fell 23 percent between 1928 and 1931. In 1932, amid mounting debt and threats of withdrawal from some local associations, the IAREB moved its headquarters from Chicago to Galesburg for two years to cut costs. In 1929, IAR’s ninth state president, Charles E. Jackson, of Rockford, died in a car accident on his way home from a tax reform strategy meeting in Chicago. Jackson, who was serving a second term as state president, was driving when his car slipped off the road during a snow storm. Jackson is the only president to die while in office.

Illinois REALTORS® who have served as NAR Presidents

Edward S. Judd Henry G. Zander 1912 (pre-dates IAR creation) 1928

14 www.illinoisrealtor.org

Newton C. Farr 1940

Morgan L. Fitch 1947

Ronald Chinnock 1954

Rich Port 1970

Ralph Pritchard 1980

CORA WRIGHT: REALTOR® AND INDUSTRY TRAILBLAZER

Housing Flashback: How times have changed. In 1938, the construction cost of a new home in Peoria averaged $8,110 and $6,720 in Elgin, according to a study conducted by IAREB. In 2013, the construction costs for a 2,607-square-foot, single-family home in the U.S. was $246,453, according to the National Association of Home Builders.

By 1934, the association moved its headquarters back to Chicago and membership slowly recovered. The association renewed its focus on fighting for lower taxes, strengthening the license law and promoting homeownership.

would limit how much a property could be taxed. The association promoted the benefits of homeownership and came up with a new official slogan, “Buy Real Estate Now.” An amendment to the license law in 1931 required that real estate brokers seeking a license would have to pass a test. In the early 1930s, the association created an arbitration committee to settle disputes between association boards and to investigate complaints in an attempt to promote high ethical and business standards. The service remains an essential association function. In another forward-thinking decision aimed at quieting concerns from larger associations that felt they were underrepresented despite contributing a larger share of the dues, the state association in 1935 decided to earmark 25 percent of association dues to statehouse lobbying efforts. In 1937, the passage of the federal Wagner-Steagall Housing Act created the U.S. Housing Authority and established a public housing program and subsidies for low-income families. When it came time for Illinois to approve legislation that would allow public housing programs here, the state association opposed it, a stance that would continue for many years as it fought against public housing, slum clearance and forced housing. The 1940s brought an increasing level of professionalism to the association. Membership had continued to grow during World War II and by 1945, membership totaled 1,939 and the association had an annual budget of $12,000. IAREB created a member publication called Spot Light and was able to offer the president a travel allowance. In 1948, Charles Kellem was hired as a full-time administrative officer and the association moved its headquarters to 522 East Monroe Street in Springfield. The same year, the national association mandated the threetier membership structure requiring REALTORS® to be members of their national, state and local associations. Education had always been an important association mission even from its earliest days when the annual conventions would offer training on license law, appraisals, zoning issues and industry professionalism. In 1953, IAREB took education on the road with its first Real Estate Sales Caravan to 10 local boards. The tours brought marketing and sales training directly to IAREB members in their communities.

IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

It was during this time that federal programs were created to prompt an economic turnaround. Congress passed the Home Owners Loan Act, allowing homeowners to refinance and save their homes. Newly elected President Franklin D. Roosevelt began his New Deal recovery programs. For IAREB, a driving force in saving the association from bankruptcy was Cora Wright, an Oak Park REALTOR® who volunteered to be association secretary and helped the organization get back on solid financial footing.

Fitch credits Wright with restoring stability and keeping the association from bankruptcy. Describing her as a having more drive than a steam locomotive, Fitch writes that under her stewardship as the association’s secretary, IAREB pushed to increase dwindling membership, collect outstanding dues and ease tensions among members during the association’s toughest times. Wright and her husband, W.H. Wright, had a real estate office serving the Oak Park and Austin communities. A trailblazer in her own right, she served multiple terms as president of her local association and was a founding member of the Women’s Council of REALTORS®, serving as its first president in 1938 and 1939.

#IAR100YearsStrong

She never served as president, but if you look back in the history of the Illinois Association of REALTORS®, you’ll find that Cora Wright played an early role in the association’s success. In his 1966 book, “Joe Brittain’s Dream Child Grows Up,” former IAR President Morgan L. Fitch chronicles the first 50 years of the Illinois Association of REALTORS®. He dedicates the book to Cora Wright, an Oak Park REALTOR® who volunteered as IAR’s first female executive officer during the Great Depression.

The Era of New Growth

The real estate industry was very different after the Great Depression. The National Housing Act of 1934 created the Federal Housing Administration to insure lenders and mortgage companies and reduce homeownership risks. The Federal National Mortgage Association was created the same year, creating a secondary mortgage market. As the economy improved, the association again campaigned for lower taxes and in 1933 successfully lobbied for tax reform that

THE ROLE OF REALTORS® AND LAWYERS IN THE REAL ESTATE TRANSACTION The debate over the respective roles between real estate brokers and lawyers in the real estate transaction came to a head in the 1957 landmark case of Chicago Bar Association v. Quinlan and Tyson, Inc. The decision issued by the Illinois Supreme Court in 1966 established the principle that it is the “nature of the act” that determines where the line is drawn between the roles of brokers and lawyers. Brokers may assist clients with business and factual information on contract forms commonly used in the community.

ILLINOIS REALTOR® January 2016

#IAR100YearsStrong IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

In 1956, the association ushered in a new era of professional management when it hired Robert E. Cook to lead IAREB as its first executive vice president. Cook led IAREB for 28 years and during his tenure, the association grew from 2,000 members with a budget of $17,000 to an association with 23,000 members and a $2.5 million budget.

IAR Moves Into the Modern Era

The next few decades would bring the creation of many of the programs, services and events that have become cornerstones of the REALTOR® organization. The affiliate

Above: 1973 IAR logo

hted on the cover of Sales Caravan highlig ® magazine , March 1969 R Illinois RE ALTO

Top: Cover of the first issue of Illinois REALTOR® magazine (May, 1965). Left: Kathryn ‘Katy’ Duncan, first female IAR president, 1970, with Gov. Richard Ogilvie and IAR then-CEO Robert “Bob” Cook.

REALTORS® attend GRI Course I in 1971 16 www.illinoisrealtor.org

membership category was created in 1957 and a year later the associate membership class was created for broker-affiliated salesmen. At the same time, requirements for entering the profession grew more structured with a prerequisite added in 1961 that required those taking the broker exam to have a high school diploma or certificate. Education was again a priority in 1964 when, under the leadership of then-President Rich Port, the first Member, Real Estate Institute was held in Peoria with 231 attending. The first class graduated in 1966 and the program would soon be renamed the Graduate, REALTOR® Institute (GRI). Since then, thousands of Illinois REALTORS® have earned their GRI, seen as one of the most notable of industry designations. The Real Estate Educational Foundation (REEF) was established in 1970 to aid and promote real estate education. In an effort to keep members informed about legislation and association news, IAREB launched the Illinois REALTOR® magazine in 1965. The association launched its first website in 1996. The Illinois REALTOR® Weekly Connection e-newsletter would debut in 2005. The 1970s brought more association milestones. Kathryn “Katy’ Duncan, the owner of McKenny Realty Co. in Robinson, became the first female president of IAREB in 1970. The same year, the Illinois Real Estate Political Education Committee is formed, later to be renamed Illinois RPAC. The Illinois Real Estate License Law has been amended and rewritten at various times over IAR’s 100-year history to strengthen requirements, change classifications or otherwise meet the industry’s changing needs. The first Illinois real estate license law went into effect in 1922 and was followed by the Real Estate License Act of 1983 and the Real Estate License Act of 2000. A 2010 rewrite changed license categories and enhanced education requirements.

Throughout the years, whether it comes to education, advocacy or finding new ways to serve members, IAR has become an industry leader. The early tenets of the organization to promote professionalism and advocate for issues that affect the industry have remained constant. Always a proponent of REALTOR® education, IAR lobbied in 1990 for legislation requiring mandatory continuing education for licensees. A year later, IAR obtained its license for the “IAR Licensing and Training Center,” a pre-license and continuing education school. IAR began to offer CE home study in 1995 and in 2000 created the Online REALTOR® Store, enabling Illinois REALTORS® to shop for forms, license manuals and CE home study courses. Today, members can fulfill their education requirements any number of ways including interactive webinars. The law governing REALTORS® has also evolved over the years. In 1973, the law was changed to create the Real Estate Recovery Fund to protect consumers from fraud and unethical acts. In 1978, IAR won a case that gave the state government the authority to license and regulate REALTORS® and not local governments. Subsequent

The idea of creating a statewide organization of REALTORS® may have garnered support from many Illinois real estate professionals a century ago, but it was the vision and determination of two men — Joseph K. Brittain and William C. Johnson — who are credited with making sure it happened. They were the first leaders of the fledgling association; Johnson served as the first president and Brittain the second. Brittain and Johnson took the mission of building a statewide alliance seriously and traveled the state—often at their own expense, drumming up interest in joining the statewide association. Under their leadership, the stage was set for early legislative victories on license law and taxation.

“President Johnson and Secretary Brittain took their infant organization seriously. Without much help and even less funds, they undertook the job of building an organization from scratch with zeal and enthusiasm.”

IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

Forward Thinking: IAR as a Model

IAR’S EARLY VISIONARIES #IAR100YearsStrong

In 1973, the association again changed its name, this time to the Illinois Association of REALTORS®. The decade would bring many firsts. IAR hosted the first Capitol Conference. In the early days, the association would host separate Springfield lobby days for as many as 30 different local boards before scaling down to four times a year in the 1980s and ultimately to one day in the spring. In 1976, IAR held the first IAR Spring Conference titled “Spring Tune-Up” in Mt. Vernon, Collinsville and Rock Island. By the end of the decade, IAR had built and moved into its first wholly-owned headquarters at 3180 Adloff Lane and would remain there for more than three decades before relocating to its current home at 522 South Fifth Street, near the Illinois Capitol. The 1980s brought growth and innovation to the association even as a recession stalled the economy and brought high interest rates. Mortgage rates peaked at 18.45 percent in October 1981, making homeownership difficult. In a win for homebuyers, IAR in 1981 successfully lobbied to block a residential mortgage usury law that would allow lenders to charge exorbitant interest rates. IAR became the first state association to create a spokesperson training program, a media training course that is still used to prepare association leaders. And in 1981, IAR would create the Illinois REALTORS® Information System (IRIS), a computerized multiple listing service program. The creation of IAR’s Legal Services program would soon follow, offering free legal guidance to IAR members. It would become the IAR Legal Hotline in 1994. Another development aimed at reducing REALTOR® liability was a new Errors and Omissions Insurance Program that allowed members to obtain affordable professional liability insurance. After 28 years, Bob Cook retired in 1984. Gerald “Jerry” Matthews would serve as executive vice president from 1984-1987 and be succeeded by Gary L. Clayton, the former director of the Illinois Department of Registration and Education, who after joining IAR in 1987, is the association’s longest-serving CEO with 29 years in 2016.

— “Joe Brittain’s Dream Child Grows Up” by Morgan L. Fitch, 1943 IAR President

William C. Johnson Johnson was born in Kentucky, but moved to Danville, Ill., where he made a name for himself as real estate agent and leader. When the Danville Real Estate Board formed in 1912, he was its first president. In June 1916, when the newly founded Real Estate Association of Illinois held its first meeting in Chicago and created a board of elected directors to serve from various regions of the state, Johnson was tapped to serve as the first president, a position he held from 1916-1920. Johnson, who later served as chairman of the state’s Real Estate Licensing Commission, died in 1928, just 12 years after the association’s creation. Brittain, who served as a pallbearer at Johnson’s funeral, continued to play a pivotal role in the association for the next decade. Joseph K. Brittain Born in Pennsylvania, a 20-year-old Brittain moved to Chicago in 1887 and by 1889 had gotten into real estate as a rent collector. He worked his way into the company’s real estate sales department and in 1891 he struck out on his own and created Joseph K. Brittain & Co. Brittain was charter member of the National Association of Real Estate Boards, serving as a delegate in the 1908 meeting where the national group was first organized. He would later serve as a national vice-president and treasurer. He was an early and influential member of the Chicago Real Estate Board and was among those chosen by then-Chicago Board President Paul Steinbrecher to investigate downstate interest in forming a statewide organization. When the Real Estate Association of Illinois was created, Brittain was its first secretary and treasurer. He organized the first convention the same year. In 1920, he would lead the association as president.

ILLINOIS REALTOR® January 2016

#IAR100YearsStrong

IAR’S PROFESSIONAL PIONEERS

Robert “Bob” Cook IAR CEO 1956-1984

IAR • CELEBRATING 100 YEARS OF ADVOCACY, EDUCATION AND ETHICS IN 2016

Gerald “Jerry” Matthews IAR CEO 1984-1987

Gary L. Clayton IAR CEO 1987-Present

IAR’s emergence as one of the largest trade organizations in Illinois and an award-winning leader among REALTOR® associations has been driven in large part by the forward-thinking vision and steadfast direction of IAR’s executive directors. Over the last 60 years, the leadership of Robert “Bob” Cook, the association’s first executive vice president; his successor Gerald “Jerry” Matthews; and Gary L. Clayton, who marks 29 years as IAR’s Chief Executive Officer, ushered in new levels of professionalism to the organization. Cook had just one support staff member — a secretary — when he was hired to lead the association with a membership of 2,000 in 1956. When he retired 28 years later, he had grown the association to more than 23,000 members, made education and association management priorities and built an enviable government affairs program that became a strong advocate for REALTORS® and private property rights. Leo Sheridan, 1982 IAR President, described Cook as the kind of leader who was always thinking ahead about what needed to be provided to the association, what he needed to do as the executive officer and what was necessary to make IAR successful. Under current CEO Gary Clayton’s tenure, IAR has grown stronger financially, even as the association weathered housing downturns and economic changes. When IAR built new headquarters in downtown Springfield, the association was able to pay off its mortgage nine years early. During Clayton’s tenure, IAR has grown into an organization with robust member involvement, advocacy efforts that shape political policy in Springfield and beyond, and an innovative provider of services and educaIAR Headquarters at 522 South Fifth Street, tional offerings.

changes included a reciprocity agreement between Illinois, Iowa and Missouri and a rewrite in 1989 that established agency disclosure and appraiser certification. In 2011, the salesperson license was eliminated in favor of broker and managing broker categories. IAR expanded its focus on legal services, creating a Transaction Helpline in 2014 with a dedicated attorney to serve as a resource regarding real estate contracts. In 2013, the IAR Ombudsman Program was created to serve as an intermediary when consumers or REALTORS® have disputes or questions about transactions. Experienced REALTORS® trained in problem solving serve as ombudsmen. A second program, IAR’s Ethics Citation Program, launched the following year and allows consumers and REALTORS® to file complaints if there are violations of certain sections of the REALTOR® Code of Ethics. One of IAR’s earliest core missions, to curb unnecessary taxation and fight for government fairness on issues that affect the industry, remains stronger than ever. IAR has relentlessly fought against tax hikes that would hurt property owners. In 2007, IAR helped kill the controversial “Gross Receipts Tax,” which would have allowed for the biggest tax increase in Illinois history. IAR’s success in political battles is strengthened by its members’ commitment to supporting RPAC. In 2014, IAR earned the prestigious NAR Triple Crown award for excellence in RPAC fundraising and participation. IAR’s successful Local Government Affairs Director (GAD) program, a groundbreaking program that took government affairs initiatives to the local community level, has grown to a dedicated staff of 12 serving the entire state. IAR’s advocacy program, now known as RVOICE, takes the REALTOR® message to consumers with brochures and political advocacy materials. In 2015, IAR launched Real Property Alliance (RPA), a website that provides direct 18 www.illinoisrealtor.org

Springfield

communication to consumers about local advocacy and governmental affairs issues. RPA has now become a pilot program for NAR. Much has happened in the 100-year evolution of the Illinois Association of REALTORS®, but its dedication to finding new ways to further the industry and provide service to its 43,000 members remains a constant goal. This year, IAR celebrates its accomplishments over the last century and prepares for the challenges ahead. “The Illinois Association of REALTORS® has been committed for the last 100 years to advocacy, ethics and education and we are going to continue that fight for the next 100 years,” said IAR President Mike Drews. Contributors to this article include: Russell Carlson and Frederik Heller, National Association of REALTORS® Information Services; Matt Boutcher, History Intern, University of Illinois Springfield; Ann Londrigan, Staff Liaison to the IAR 100th Anniversary Task Force.

In the year ahead, Illinois REALTOR® will take a closer look at the core missions of the association and how each has been shaped by the last century. •

• •

April – The magazine will highlight IAR’s government affairs successes and the creation of the license laws which have provided greater industry professionalism. July – This issue will cover IAR’s commitment to education, professional standards and legal services. October – This issue will recap the highlights from the 100-year celebration and look forward to IAR’s second century.

ILLINOIS REALTOR® January 2016

Share your score on Twitter #IAR100YearsStrong LESS THAN 3 CORRECT Visit www.illinoisrealtor.org/history to learn more! 3 - 7 CORRECT Maybe go back and read pages 12 – 18. 8 - 11 CORRECT Not bad, not bad at all. 12 - 15 CORRECT Col. Smart E. Pants

HOW DID YOU SCORE?

ANSWERS 1.) Chicago, Danville & Rockford. 2.) D. In addition to good roads, a license law and adding an exam and licensing fee as requirements for becoming a REALTOR®, other reasons for forming were property taxes, adoption of a tax amendment in Illinois and enforcement of the Code of Ethics. 3.) Five times: 1) The Real Estate Association of Illinois – April 25, 1916; 2) Illinois REALTORS® Association – October 1921; 3) Illinois Association of Real Estate Boards – October 1923; 4) Illinois Association of REALTORS® – March 1973; Illinois REALTORS® – 2015 4.) $10 (SB 322 Approved June 29, 1921). 5.) Five licenses were revoked the first year. 6.) 1916-1920 – William C. Johnson (Danville) 7.) 1970 – Kathryn “Katy” Duncan (Robinson). 8.) 1980 – Ralph Pritchard (LaGrange); 1970 – Rich Port (LaGrange); 1954 – Ronald Chinnock (Chicago); 1947 – Morgan Fitch (Chicago); 1940 – Newton Farr (Chicago); 1928 – Henry Zander (Chicago). 9.) Northern Illinois Commercial Association of REALTORS® NICAR (1994). The second newest is the Logan County Board of REALTORS®, established in 1996. 10.) Chicago. Established in 1883, Chicago joined NAR as a Charter Member in 1908. 11.) There are two who will turn 100 in 2017, actually: Champaign and Oak Park. 12.) Illinois was the 8th state to join, after the following (in order of joining) California, New York, Wisconsin, Michigan, Indiana, Ohio and Iowa. 13.) Becky Carraher – 30 years in 2016. 14.) President Woodrow Wilson sent 12,000 United States troops over the U.S.-Mexico border to pursue Pancho Villa; the Chicago Cubs played their first game at modernday Wrigley Field (then known as Weeghman Park); Norman Rockwell’s first cover graced the Saturday Evening Post; the National Park Service is created; REALTOR® trademark established. 15.) Chicago (1916-1932 and again 1934-1948), Galesburg (1932-1933). Springfield has been IAR’s home since 1948.

headquarters?

14. What else happened in 1916? 15. What other cities — besides Springfield — have been home to IAR’s

Above: From

the IAR 1989

port

Legislative Re

the longest?

6. Who was IAR’s first president? 7. What year was IAR’s first female president elected? 8. How many IAR members have become president of NAR? 9. Which board is the newest member of the REALTOR Family? 10. Which board is the oldest? 11. Which local association will celebrate 100 in 2017, a year after IAR? 12. How many state associations had joined NAR before IAR? 13. Who among current IAR staff has worked for the association ®

were revoked?

For the Protection of the Public and to Weed Profession of Unreliable Brokers

5. In the first year of business for the new license law, how many licenses the fee for the real estate broker certificate of registration?

3. How many times did the association change its name? 4. The first Illinois license law was approved June 29, 1921. What was A. B. C. D.

Promotion of good roads A license law Need for an exam for those entering the real estate profession All of the above

1. What were IAR’s founding boards? (Clue: There were 3.) 2. What was one of the reasons why IAR was formed in 1916?

How well do you know the history of IAR?

IAR HISTORY QUIZ

A Year of Planning, A Year of Celebration Ahead By Pam Krieter, Chair, IAR 100 Anniversary Task Force CEO, Mainstreet Organization of REALTORS® th

t has been my honor to chair the task force for our state association’s historic milestone. We have a great group of IAR members from around the state involved in the planning of events, commemoratives and message. We are celebrating “100 years of Advocacy, Education and Ethics.” To the public our message is “100 Years of Protecting the American Dream of Homeownership in Illinois” as well as a commercial message “protecting private property rights.” One date you simply cannot miss is April 5, the Illinois REALTOR® Lobby Day and Anniversary celebration in Springfield. Help celebrate by downloading graphics from www.illinoisrealtor.org/ anniversary. Use the hashtag #IAR100YearsStrong in your Come to any of social media posts. the major events I joined the REALTOR® family in 2016 and you’ll in 1972 as a secretary in a real estate get your own firm, then got my license and sold th 100 Anniversary homes for a few years before starting pin (above). a family. I returned to real estate when asked by my former partner, then president of the Leyden Board of REALTORS®, to join in a staff role. The Leyden Board was the first all-REALTOR® board in Illinois. At the time only owners and managing brokers were allowed to hold leadership positions on REALTOR® boards but the Leyden Board of REALTORS® was important because it created a change in governance that allowed all members — including REALTOR® associates — to begin serving and have a voice. Ultimately, the Leyden Board dissolved in 1995 and its members joined the REALTOR® Association of the Western Suburbs. The local association we now call the Mainstreet Organization of REALTORS® has ties to 14 early associations that encompass our Chicagoland jurisdiction today. One of the biggest changes I’ve seen over the years is our increased efforts in advocacy. That wasn’t a primary mission when I started. We were focused on getting information and professional development tools to our members. New franchises were on the rise, introducing different business models to the real estate industry. Today advocacy is a major component of what we do at all three levels — local, state and national. IAR really has led the way in advocacy through the local

IAR 100th AnnIveRsARy tAsk FoRce (1916-2016)

Chair: Pam krieter Mainstreet



Advocacy • Educat ion • Ethics

20 www.illinoisrealtor.org

Pam Borowski

Northwestern Illinois

201

Charay Brewer Egyptian

6 Christine Chase

nanCy Crowder

Mainstreet

Danville

kevin GouChenouer

sheryl Grider whitehurst

Central Illinois

Peoria

Bloomington-Normal

thomas Jones

kim keefe

Zeke morris

swati saxena

karen Parent

Jennifer teske

Chicago

Photos Graphic c for mag.indd 1

Oak Park

Mainstreet

Heartland

Greater Gateway

11/23/2015 2:00:43 PM

Government Affairs Director (GAD) program, which started here in Illinois and has been replicated across the country. Another major change has been the evolution of the Multiple Listing Service (MLS). In my early career we had paper listings, “the MLS book,” that were circulated to the offices on a weekly basis. Today MLSs such as MRED are regional and are leaders in technology, providing members and consumers with the most accurate data in real time. So it is indeed time to celebrate our 43,000-member strong organization, the achievements from our past and as we all work together for the future of our real estate industry and the residential and commercial consumers we serve.

#IAR100YearsStrong

IAR celebrates 100 years of advocacy, education and ethics in 2016

JANUARY

MAY

IAR Milestones Timeline in the January Illinois REALTOR® magazine

Tribute at NAR Legislative Meetings

Centennial Sponsor

January 12-13 Professional Standards Workshops Springfield & Oakbrook Terrace

January 19-21 • East Peoria IAR Public Policy Meetings

JUNE

Platinum Sponsor

June 20-22 • Springfield IAR Business Meetings

June 21 • Springfield REEF - REALTOR® of the Year Banquet

MARCH March 9-10 • Collinsville IAR Conference & Expo

Diamond Sponsor

JULY Illinois REALTOR® magazine focus on REALTOR® Education

Silver Sponsor

APRIL April 4 • Springfield IAR 100th Anniversary Media Event (invite only), IAR Headquarters

April 5 • Springfield IAR Capitol Conference & Anniversary Reception

April 25 Official Day of Association’s Incorporation in 1916 Illinois REALTOR® magazine focus on IAR Advocacy & Governmental Affairs

OCTOBER

Bronze Sponsors

October 4-5 • Naperville IAR Business Meetings

October 5 • Naperville Inaugural Gala for 2017 President Doug Carpenter marks the close of the anniversary celebration with a look to the future of real estate Choice Sponsor

Visit www.illinoisrealtor.org/Anniversary for event updates and sponsorship opportunities

Longtime REALTORS see changes as good for all ®

By Bill Kozar | Content Marketing Specialist

Five long-standing Illinois REALTORS® with a combined total of 228 years of real estate experience say technological advances have revolutionized the business. On IAR’s 100th anniversary, Dede Strano, Lois Rowland, Gerald Perlow, Sheila Kraemer and Larry Hundman can look back on careers that have seen the industry shift from paperdriven communication to a world dominated by Internet marketing, multiple listing services and consumer ease of access to real estate listings. The five say that those advances have improved circumstances for their businesses as much as they improved them for their clients. Some have seen the business from the perspective of brokers, managing brokers/owners, while others have served in leadership positions in local, state and national associations. Perlow, 1991 IAR president and 1994 REALTOR® of the Year, said he’s always been at the forefront of changes in the business if they benefit clients and real estate professionals. “Since I started in real estate, we’ve always been trying to analyze ways to streamline our business,” said Perlow, who works as a REALTOR® and property management consultant primarily in Illinois. “I call that dedication.” Hundman of Coldwell Banker/ Heart of America REALTORS®, Ltd., in Bloomington said most of the significant industry changes have happened in the last decade. He cited the development of smart phones, online listing services and the switch in advertising from paper to the Larry Hundman Internet as the biggest changes during his career, which began in 1963.

CHANGING AND CLARIFYING ROLES

Strano, owner of Strano & Associates Real Estate in Belleville, began her real estate career in 1976. In the ’70s, she said, multiple listing services didn’t exist, and brokers

were gatekeepers of listing information. Agents would search newspaper real estate sections for available homes and decide which ones to preview with customers. She says the development of multiple listing services changed that dynamic, helping consumers identify for themselves what properties they were interested in. Consumers didn’t have a clear understanding of who real estate agents represented in real estate transactions until the early 1990s when the Mandatory Agency Disclosure ensured that brokers who help consumers purchase a property inform their clients of their agency relationships. Kraemer, owner of Sheila Kraemer Realty, LLC, in East Moline, said she liked the change to requiring agency disclosure. “I always thought it was good to represent buyers,” she said. “The change fulfilled what I always believed, and it helped open up the business and make it more transparent.” Kraemer, who’s been a REALTOR® since 1979 and a broker since 1983, said the rise of multiple listing services, the invention of electronic signatures and Internet marketing made real estate more cost-efficient for her business. Rowland, formerly of Coldwell Banker, Sheila Kraemer Rex Rowland in Christopher, began her

“As the real estate industry evolves, technology will continue to impact how we communicate with our customers. A problem that real estate professionals experience with the advancement of technology is losing that face-to-face with their customers. There just are times when your customers need to see you or hear your voice. It’s difficult to communicate compassion in an email or text.” — Dede Strano 22 www.illinoisrealtor.org

career in 1969. She, and her husband, former IAR President Rex Rowland, are retired now but she keeps an active license. She remembers the days before lead paint and radon testing, when her local association didn’t have an association executive and the Lois Rowland closest fax machine in the area was one she used at a nearby car dealership. A multiple listing service came to the area in 1999, and with it came the need for an office computer. In terms of our association, Perlow says a noteworthy development in 1991 was NAR’s decision to include REALTOR® Associates as full members, effectively giving salespeople, brokers and managing brokers equal standing in the association. He thought it helped make the association stronger. He said the merger of the Northside Real Estate Board and the Gerald Perlow Chicago Real Estate Board was important, as it formed what it now known as the Chicago Association of REALTORS®, one of the more prominent local associations in the National Association of REALTORS®.

BALANCING COMPLEXITY AND EFFICIENCY

When Strano began her real estate career, financing was usually conventional or obtained through the Veterans Administration, paper contracts were one legal page long, picking up keys to show houses was time-consuming and exchanging offers and counteroffers took more time out of the workday for real estate professionals. But she says the enhancements in computers, software and electronic documents, and the development of secure lock boxes and electronic signature programs have made serving real estate customers more efficient even though many things about the business are more complex. Dede Strano For example, she sometimes has contracts up to 11 pages with multiple addendums. Cellular phones made it much easier to stay in touch with clients and business contacts during trips out of town, she says. On one trip to Florida early in her career, she negotiated a contract by using pay phones. “As the real estate industry evolves, technology will continue to impact how we communicate with our customers. A problem that real estate professionals experience with the advancement of technology is losing that face-to-face with their customers. There just are times when your customers need to see you or hear your voice. It’s difficult to communicate compassion in an email or text.”

SPONSORED CONTENT FROM IAR’S CENTENNIAL SPONSOR

A WONDERFUL PARTNERSHIP By Rebecca Jensen President and CEO of Midwest Real Estate Data (MRED)

irst of all, I am taking this opportunity to thank all of you for the incredibly warm welcome you have given me to Illinois. Having spent my entire life in Utah, it was quite a change to come to Lisle last March to become the CEO of MRED. Without exception, everyone I have met has been as friendly and helpful as could be. Must be a Midwest thing! I have committed myself and our organization to finding out what YOU, our customers and friends across the state, want from your MLS. MRED is a vibrant and influential MLS, and casts quite a shadow across the country. We use our resources to impact the industry for the benefit of our brokers, by working closely with the Real Estate Standards Organization (RESO), the Broker Public Portal (BPP) and jointly with other MLSs on important initiatives. We carry quite a bit of weight within our part of the industry, and we use the feedback and input we receive from you to acquire the very best in cutting edge products and services for your benefit. I also want to thank my fellow MLS executives around the state for their friendship and cooperation. I look forward to working together to help our customers. The most gratifying part of my move to Illinois has been the “hand in glove” relationship that has been formed with Mike Drews, Gary Clayton, Jim Kinney and the rest of IAR leadership. I have the benefit of working closely with our Chairman of the Board, Jeff Gregory, who many of you know is very involved as a REALTOR® on a national, state and local level. MRED and IAR have quickly formed a bond that is already producing benefits for everyone. Three things spring to mind: •

MRED is IAR’s Centennial Sponsor. We wanted to show everyone how committed we are to working closely with IAR and how important it is to honor its incredible history.

•

We are partners with IAR in bringing Inman Select to all IAR members in the state – for free! A great way to stay on top of industry issues, we both thought it important to provide all of you with this opportunity.

•

MRED continues to support and assist IAR in getting the message out, particularly with Calls for Action, which have been very well responded to. I hear our close working relationship in this area is the envy of others around the country.

We stand ready to provide award-winning customer service to anyone who contacts us. Please feel free to get in touch with our Help Desk at 630-955-2755 ® or help.desk@MREDLLC.com with any and all questions. See Midwest Real Estate Data you at the Public Policy meetREinventing MLS ings in January!

ILLINOIS REALTOR® January 2016

Illinois REALTORS® have a heart for helping others By Bill Kozar | Content Marketing Specialist

Illinois REALTORS® help with tornado recovery in Washington, Ill., in 2013 (two photos on left), and with Habitat for Humanity in New Orleans in 2010.

hether a food bank faces a shortage, a river town floods or a tornado strikes, Illinois REALTORS® are among the first to respond with aid.

he association has a long history of donating to help disaster victims, and in 2015 the association made it easier to get involved in relief efforts by creating the non-profit Illinois REALTOR® Relief Foundation to coordinate aid. In all, Illinois REALTORS® have donated nearly $600,000 since 1997 to help neighbors nationwide, but the disaster aid is part of a bigger picture of giving that has seen more than $3.3 million targeted toward helping communities. The list of causes Illinois REALTORS® have been involved with ranges from donating money to and building Habitat for Humanity homes along the Gulf Coast after Hurricane Katrina to providing $40,000 toward refurbishing the Illinois Executive Mansion. Pam Borowski, Association Executive for the REALTOR® Association of Northwestern Illinois, said her experience helping after Hurricane Katrina changed her life. “It made me so proud to be a REALTOR® — a REALTOR® from Illinois!” she said. “The people we helped were so incredibly gracious and thankful for what we did. The whole experience made me feel better about my life. We have probably the greatest association in the United States. Other states are envious of what we have accomplished.” Since establishing the Illinois REALTOR® Relief Foundation earlier this year, more than $78,980 has been distributed for Illinois tornado relief. The non-profit foundation provided support for victims of April and June storms which struck Grundy, LaSalle, Lee, DeKalb and Ogle counties. And that’s on top of $25,000 donated by IAR to the NAR’s REALTOR® Relief Foundation, as well as grassroots volunteer efforts by individual members and their local associations. Those contributions Major IAR were built on an IAR traYear Event Contributions dition of helping others in Hurricane 1999 great need. Since 1997, IAR $5,000 Floyd has given more than $3.3 9/11 Terrorist 2001 million for disaster recovery, $106,406 Attacks charitable donations and Hurricane 2005 homeownership causes. $210,000 Katrina But REALTOR® support Hurricane 2012 can’t be measured solely in $25,000 Sandy dollars. 24 www.illinoisrealtor.org

Proud of the first Former IAR President Phil Chiles says he takes great pride in the fact that the National Association of REALTORS® (NAR) was one of the first organizations to hold a convention in New Orleans after Hurricane Katrina. Just a few years after starting his real estate career, Chiles led a home-building team of 11 Illinois REALTORS® which built the walls of two homes in two days on the IAR headquarters lot before they were shipped to New Orleans. The following year, Chiles and Illinois volunteers spent a week in Mobile, Ala., putting to use skills taught by Habitat for Humanity trainers. “The devastation from Katrina was overwhelming,” he said. “What used to be antebellum mansions were gone, with only foundations and steps remaining. Along the coast, we saw fishing boats that had been taken inland, and left high and dry. It was a humbling experience. But we built relationships with some of the prospective homeowners, and we learned how their lives were turned upside down by Katrina.” The next year, Chiles says, another Illinois contingent traveled to Gulf Shores, Ala., to help hurricane victims who were still working on the rebuilding process. He was captivated by the story of a man who cleared a wooded area to build a new home because his previous home had been destroyed during Katrina. “On the second morning we were down there, a man with shorts, a jacket and no shoes told us his story,” said Chiles. “He had 40 acres but no money. So he took down trees for his own lumber, and then put up a house in the space he cleared. It was so good to hear his story and to be able to help him. We put cabinets in for him, did the wiring and trimmed the house. It was such a good experience.” Chiles said the trips to help clean-up and rebuild after Hurricane Katrina inspired him to look for future Habitat for Humanity projects to participate in. When he became IAR president, Habitat projects in Springfield, Aurora and Murphysboro became part of his legacy.

Chain reactions Mabél Guzmán, the chair for the REALTORS® Political Involvement Committee and a former Chicago Association of REALTORS® president, says her time with the Hurricane Katrina volunteers has been long-lasting.

The first year she went to New Orleans after the levees broke and worked alongside REALTORS® from all over the country. Her second year, she met Chiles and others in Mobile. “Since then, I have worked on Habitat projects annually and continue to do so. I am currently planning a trip to Cuba in the hopes of starting a Habitat chapter there.” Guzmán says sometimes REALTORS®’ actions can energize others to take action, too.

‘Give where you live’ Egyptian Board of REALTORS® Association Executive Charay Brewer says local associations are very good at helping their communities when local charities need assistance or they are struck by natural disasters. For example, she says her association will buy gift cards so house fire victims can get gas, food and toiletries to supplement their aid. She said her association — along with help from other local associations and IAR — raised $40,000 to help tornado victims near Harrisburg a few years ago. Jana Heffron, of Keller Williams Premier Realty in Peoria, remembers how REALTORS® from every brokerage in the area pitched in to help communities of Pekin, East Peoria and Washington recover from devastating tornado damage in November of 2013. “We helped so many people in any way we could those following weeks. We collected furniture, clothes, food and storage containers. We sifted through insulation-covered personal belongings and packed them until the homeowners could figure out what to do with it all. We did everything we could because we all knew this could have happened to us just as easily as it happened to them ... That’s just what you do when you give where you live.” Often, local association leaders will let other leaders know if assistance is needed, and their counterparts inevitably come through with aid, said Brewer. Heffron said: “Throughout my real estate career ... I have met others who share the same outlook: give where you live. It’s that simple. The impact of our involvement grows exponentially when others keep it moving forward.” Brewer says the projects she’s been involved with locally have helped her gain a real appreciation for the work she’s doing on the committee for the Illinois REALTORS® Relief Foundation, evaluating applications for financial assistance. “It’s been very gratifying for me,” she says. “We are just paying it back or paying it forward, however you want to look at it. We know that with weather-related disasters around here, it’s not a matter of IF we’ll be impacted, it’s a matter of WHEN.” Chiles has a simple explanation for REALTORS® generosity: “I just think REALTORS® have a heart for helping people.”

Other ways REALTORS® make impact From 1996 to 2011, the Partnership For HomeOwnership (PFHO) provided consumer information to thousands of lowincome Illinois families about residential mortgage financing, gave mandatory housing counseling for low down payment housing loans and provided foreclosure intervention for borrowers in default. The PFHO was a separate, not-for-profit corporation of IAR, supported by voluntary contributions from individuals and firms as well as grants from federal, state and industry related donors.

The foundation partnered with federal and state agencies on housing programs including: the Rural Housing Initiative, the Quincy Housing Initiative and the HomePower Mortgage Assistance Program. Under the leadership of PFHO CEO Beth Llewellyn, the Quincy program was honBeth llewylen ored in 2005 with a Home Ownership Participation for Everyone (HOPE) Award for making a difference in minority home ownership. From 2004 through 2011, IAR gave a total of $700,000 to PFHO and nearly $500,000 to HomePower. “PFHO succeeded because of the dedication and knowledge of the board and the personal commitment and resolve of Beth Llewellyn,” said IAR CEO Gary Clayton, “PFHO was noted for finding a niche of services and individual counselling which helped thousands secure affordable housing. Beth and the board’s creativity provided a springboard for the launch of many local, state and national housing assistance programs while fostering a bond between REALTORS®, local associations, advocacy groups and the homeowners they assisted.”

Building for the future In February 2015, IAR donated $53,000 to the Springfield Kidzeum of Health and Science to fund the Green Home Construction Exhibit within its Healthy Community Gallery. In August 2015, IAR Headquarters hosted a fundraiser for the Illinois Executive Mansion Association, with the Stanley Cup and the owners of the National Hockey League champion Chicago Blackhawks as featured attractions. IAR made several donations during the year to the association, totaling $40,000. The governor’s mansion is just across the street from IAR Headquarters. IAR President Mike Drews says: “REALTORS® love to be involved in community improvement projects, so it only seemed natural to support two projects within blocks of our state headquarters in Springfield: the Kidzeum and the Executive Mansion. The Kidzeum exhibit will teach Illinois children about green initiatives, and the restoration of the Governor’s Mansion will allow Illinoisans to appreciate one of the most grand, historic properties in the state for years to come.”

BIG-TIME SUPPORT Since 1997, the Illinois Association of REALTORS® (IAR) has contributed a total of $3.3 million dollars to charitable causes, disaster recovery and the less fortunate. Here’s a list of some of the biggest donations during that time: zz Partnership For HomeOwnership (PFHO) subsidy – seven years ($700,000), zz HomePower Mortgage Assistance Program – five years ($495,364), zz Habitat for Humanity – multiple projects ($185,000), zz Hurricane Katrina ($210,000), zz 9/11 ($106,406), zz Kidzeum ($53,000) and zz The Illinois Executive Mansion Association ($40,000).

ILLINOIS REALTOR® January 2016

LEGAL UPDATE Elizabeth A. (Betsy) Urbance | IAR Legal Hotline Attorney; Associate, Sorling Northrup Attorneys

HOT TOPICS FROM THE IAR LEGAL HOTLINE IN 2015

1 SCOPE OF REAL ESTATE LICENSE

Q I currently hold a managing broker’s license, but I don’t think I would ever manage a real estate brokerage office again. Is there a method for me to revert to a broker’s license? Yes. Pursuant to Illinois Real Estate License Act (RELA), Section 5-27(e), if a person holds an active managing broker license and wishes to revert to a broker’s license, the managing broker licensee should submit the license, a fee and a form provided by the Illinois Department of Financial and Professional Regulation (IDFPR) to IDFPR. The following IDFPR Web page contains the form: www.idfpr. com/profs/REALEST.asp. The form explains the process and the education requirements to make this exchange. Upon receipt of all required documentation, IDFPR will send a broker license to the licensee who will need to be properly sponsored.

AGENCY QUESTIONS

Q Do agency duties and disclosure requirements apply in leasing/rental transactions too? A Yes. Keep in mind that licensees who represent landlords in leasing transactions need to operate as disclosed dual agents with written disclosure and informed consent if they are representing both the landlord and tenants in this limited role. An alternative is where the broker treats the tenant as a customer and gives the tenant a Notice of No Agency form. This is more often the case when a licensee is representing only the landlord. If a licensee represents the tenant only, the tenant must be given written disclosure as to the identity of that designated agent. The most important lesson here is that the statutory duties of agency apply in leasing/rental transactions and the agency or non-agency disclosure requirements apply in both residential and commercial brokerage transactions.

26 www.illinoisrealtor.org

3 PURCHASE CONTRACT QUESTIONS

Q Will the new regulations dealing with residential loans affect local association or regional form purchase contracts? A Yes, it is highly likely the form purchase contracts that are used in your area have been amended in the wake of the new Truth-In-Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) Regulations. Specifically, you need to check the financing contingency provisions for any changes as well as closing dates or closing window provisions. In Northern Illinois, the form purchase contract in use is known as the Multi-Board Residential Real Estate Contract 6.1. Multi-Board Contract 6.1 has been available since September, 2015.

4 DRONES AND ADVERTISING

Q Would you provide an update on the regulatory landscape for the commercial use of drones? A Yes. As of publication, the latest is this: The Federal Aviation Administration (FAA) has published proposed rules and the National Association of REALTORS® (NAR) is monitoring this rulemaking closely and continues to comment on the process. The comment period is likely to extend into 2016. In the meantime, the FAA says it will grant permits for commercial drone use on a case-by-case basis. The permit application process is detailed, including many stringent requirements; although it was recently reported at NAR meetings by an FAA official that the process is becoming more streamlined. You might hear these permits referred to as Section 333 waivers. (www.realtor.org/law-and-ethics/ drones-frequently-asked-questions) As a result, IAR’s guidance to REALTORS® remains: Do not fly your drone for commercial purposes unless and until there are FAA rules in place setting forth the parameters for permitted use or unless you are issued a Section 333 waiver. If you feel you must fly your own drone as opposed to hiring someone with an FAA-issued certificate, IAR highly recommends that you visit with your attorney and your insurers before doing so. You would not have insurance coverage should your drone crash causing damage and you are found to be acting without proper certification and/or in contravention of federal regulation.

5 LICENSE LAW - BUSINESS PRACTICES

GOT A LEGAL QUESTION? The IAR Legal Hotline is the Designated REALTOR®/managing broker’s go-to source for legal information.

Q Can you summarize important points to remember regarding the new TRID regulations? A Following are six important points to get you started:

Phone: 800.952.0578 Email: burbance@iar.org HOURS: 9 a.m. to 4 p.m. Monday through Friday

1. The implementation date of the new rules was Oct. 3, 2015 and applies to most consumer residential real estate transactions where there is a federally related loan involved. 2. The “Loan Estimate” (LE) form replaced the initial truth-in-lending and the Good Faith Estimate forms. If the amounts initially disclosed in the LE differ in prescribed amounts from the actual expenses at the conclusion of the loan transaction, the lender may be required to pay refunds to the consumer/ borrower.

GOT A LEGAL QUESTION ON TRANSACTIONS? Call the IAR Transaction Helpline. Phone: 844.647.3833 Email: jbaker@iar.org

3. The LE must be delivered to the consumer within three business days of the consumer’s application for a loan. For LE time periods, Saturdays are only counted as a business day if the lender is open on Saturdays.

NEED HELP RESOLVING A DISPUTE WITH A REALTOR®? The Illinois Association of REALTORS® (IAR) has a Consumer Help Line to try and resolve questions relating to real estate transactions.

4. Lenders are still allowed to provide pre-approval and pre-qualification letters. 5. The “Closing Disclosure” (CD) replaced the final truth-in-lending and HUD-1 form. The CD must be received by the consumer at least three business days prior to consummation (in Illinois, this is usually the closing date). For CD time periods, Saturdays are always counted as business days. 6. There could be longer closing windows or delays in closings. However, minor changes to the CD will not necessitate a re-set of the three day time period. More often than not, the delay will be 24 hours or less.

Help Line: 217.529.2600 9 a.m. to 4:30 p.m. Monday through Friday www.illinoisrealtor.org/disputes

THE REST OF THE STORY: FIND FOUR MORE 2015 HOT LEGAL TOPICS AT www.illinoisrealtor.org/node/3930

ILLINOIS REALTOR® January 2016

IAR CONFERENCE & EXPO 2016

www.illinoisrealtor.org/conference 1-800-252-2910 | register@iar.org

CELEBRATING 100 YEARS 6

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BUSINESS EXPO Want to be an exhibitor or sponsor? Contact events@iar.org or 217-529-2600. Sponsor Deadline: February 17

IAR

Conference & Expo march 9-10, 2016 Collinsville

Illinois Association of REALTORS® -“The Voice for Real Estate in Illinois” 522 S. Fifth Street, Springfield, IL 62701

March 9-10, 2016 • Collinsville SPONSORS

Education

SPEAKERS

CRAIG GRANT “The Real Estate Tech Guru”

JohN JAMIESoN ToM LUNdSTEdT “A Residential REALTORS Guide to Working with Investors”

“Wealth Strategist Your Financial Future”

GOvERNmENTAl AFFAIRS BREAKFAST

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Why does IAR lobby at the local level? What is being accomplished? Why does it matter?

Advocacy

KYLE ANdERSoN CoNoR BRoWN

KRISTIE ENGERMAN

March 9-10, 2016 Collinsville • Gateway Center www.illinoisrealtor.org/conference

MIKE SCoBEY

ACCOMMODATIONS: DoubleTree by Hilton Collinsville-St. Louis 1000 Eastport Plaza Dr, Collinsville, IL 62234 Reservation Deadline: Feb. 8 866/235-4657

#IAR100YearsStrong

AT THE CAPITOL Julie Sullivan | Assistant Director, Legislative and Political Affairs

NOTABLE NEW LAWS FOR THE NEW YEAR There were more than 600 bills sent to Gov. Bruce Rauner from the 2015 legislative session. Here is a summary of some of the new laws of interest that go into effect on Jan. 1, 2016.

Public Act 99-439 (Senate Bill 1487) establishes a pilot program in Cook County permitting documents to be recorded against a property in foreclosure by judicial order only. The new law exempts mechanics lien claimants, units of government and judicial bodies from the requirement that a certified court order must be obtained to record documents on a property in foreclosure. The county recorder is also allowed to inspect the photo identification of any person attempting to record a document on a title that is subject to a court order and may deny recordation to any person who refuses to provide proper photo identification. Public Act 99-75 (House Bill 3672) provides that IF a county has a

property fraud alert system, the county recorder may create a registration form to register a property owner in the system. The bill also permits a real estate professional (an attorney, title agent, or real estate licensee) to file a registration form on behalf of a property owner. While this is a voluntary program, if the real estate professional wants to participate, they must register with the county recorder prior to filing the registration forms on behalf of property owners. The bill specifically limits the liability for those assisting a property owner registering for the property fraud alert system. Also notable in the new law is a provision that will allow a property owner to list three other people to receive a property fraud alert on his or her registration form.

Public Act 99-367 (Senate Bill 792) makes transparency of local governments a priority by making it law that any required notices be posted on the governmentâ&#x20AC;&#x2122;s website. Public Act 99-253 (House Bill 1319) changes the Security Deposit Interest Act to provide that the requirement that a lessor pay accumulated interest within 30 days after the end of each 12-month rental period only applies to interest that has accumulated to an amount of $5 or more. The lessor will still be required to pay all interest that has accumulated and remains unpaid, regardless of the amount, upon termination of the tenancy. Public Act 99-37 (House Bill 3193) will permit a governing commission of a Guaranteed Home Equity Program (only located in Chicago) with no less than $4 million in its guarantee fund to establish a Low Interest Home Improvement Loan Program by resolution OR by a referendum of those residing in the boundaries. The law had previously required that this could only be approved by referendum vote. Loans can be used for the repair, maintenance, remodeling, alteration or improvement of an eligible residence within the area of the home equity program.

30 www.illinoisrealtor.org

KEY DATES IN 2016

Happy 100th Birthday IAR!! #IAR100YearsStrong JANUARY 18-21, 2016 Public Policy Meetings, Embassy Suites, East Peoria FEBRUARY 4, 2016 Early voting begins for Primary Election MARCH 9-10, 2016 IAR Conference and Expo, Collinsville MARCH 15, 2016 Primary Election Day APRIL 5, 2016 IAR Capitol Conference and Anniversary Reception, Springfield JUNE 20-22, 2016 IAR Business Meetings, Springfield The calendar for the 2016 spring session of the General Assembly is available at www.ilga.gov

Public Act 99-112 (House Bill 2797) will permit the Secretary of State to establish and maintain an online application system for notaries public. The law had previously only had a paper application system. Public Act 99-452 (House Bill 3556) changed a municipal economic development tool to allow for a modification of how funds may be used. The Business District and Redevelopment Law was amended to permit a municipality to utilize up to 1 percent of the revenue from a business district sales tax and hotel/motel tax revenues from one business district for eligible costs in another business district that is: (A) contiguous to the business district from which the revenues are received; (B) separated only by a public right of way from the business district from which the revenues are received; or (C) separated only by forest preserve property from the business district from which the revenues are received if the closest boundaries of the business districts that are separated by the forest preserve property are less than one mile apart.

Public Act 99-134 (Senate Bill 659) directs the Illinois Department of Commerce and Economic Opportunity to create and maintain a “new business permitting portal” website to help persons who want to create a new business or relocate a business to Illinois. This one-stop shop will inform business owners of state and local license and permitting fees and instruct them on how to get more information to start a business including any state-based incentives. Public Act 99-470 (HB 152) will mandate carbon monoxide detectors in schools throughout the state. Schools must also put in place plans, protocols and procedures to respond to the activation of an alarm or detection system.

Public Act 99-158 (House Bill 3840) directs the establishment of the Equal Economic Opportunity Task Force to examine: barriers to opportunity in economically depressed communities; issues discouraging local investment and business development; local community concerns and current economic conditions. The task force will establish a comprehensive economic development policy for small, medium and large businesses. The final report is required to be submitted by Jan. 1, 2017.

Why Invest in RPAC? Fire sprinkler mandates STOPPED ($10,000+ cost)

Mortgage Interest Deduction PRESERVED ($3,500+ for the average taxpayer)

Video sewer inspection mandate STOPPED ($500+ fee)

Local real estate for-sale sticker fee STOPPED ($25 fee)

Licensing of real estate firms by local government STOPPED ($100 fee)

RPAC always has your business interests in mind. www.illinoisrealtor.org/CalculateYourSavings Contributions to RPAC are not deductible for federal income tax purposes. Contributions are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or decision not to contribute. You may refuse to contribute without reprisal. Up to thirty percent (30%) may be sent to National RPAC to support federal candidates and is charged against your limits under 2 U.S.C. 441a. A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official website www.elections.il.gov or for purchase from the State Board of Elections, Springfield, Illinois.

Jan 2016 Mag - RPAC ad half page FINAL.indd 1

12/2/2015 1:44:23 PM

ILLINOIS REALTOR® January 2016

IAR Capitol Conference “REALTOR® Lobby Day” April 5, 2016

Be A PARt of HIStoRY! IAR celebrates 100 years of advocacy, education and ethics in 2016 april 5 - Iar Capitol Conference and anniversary reception President Abraham Lincoln Springfield a DoubleTree by Hilton Hotel

Legislative briefings and Capitol visits Meet with members of the Illinois House and Senate on key REALTOR® issues Legislator networking reception

#PowerofR

#IAR100YearsStrong www.illinoisrealtor.org/capitolconference

Mike Scobey | Assistant Director, Advocacy and Local Issues

IAR ADVOCACY AND INSPECTION ORDINANCES One of the most common issues IAR’s local government affairs directors face is property inspections. Advocacy on this issue is a priority of IAR’s government affairs team and is central to the protection of real property rights. We work to make sure the inspection policies of local governments are not overly intrusive or costly. In Illinois, more than 150 municipalities have a real property inspection requirement. With owner-occupied single-family homes, the inspection is usually done at the “point of sale,” which means that the owner/seller must notify the municipality of the upcoming transfer. Then an inspection is done by a member of the municipality’s staff. The inspection is usually done before the closing, and any required repairs are typically done by the seller. The inspector is usually looking for building code violations. Several municipalities inspect rental properties. They do it in one of two ways: at the change of occupancy or on a regular basis (e.g. once every two or three years). You can view a list compiled by the Illinois Association of REALTORS® which shows all of the municipal requirements related to inspection requirements at www.illinoisrealtor.org/ localgovernment The Illinois Association of REALTORS® advocates for the inclusion of fair and reasonable inspection standards and procedures. Here are some examples of what IAR lobbies for: Reasonable Inspection Fees. Fee revenue should reflect the cost of the inspection program and not be a revenue generator. Inspection Checklist. This helps to ensure that the owner will know exactly what kind of violations the municipality is looking for in the inspections.

impact fees. While we have not heard much about impact fees in recent years, the topic is on our radar more in recent months as home construction increases. Since impact fees drive up the cost of new homes and affect affordability, IAR advocates for fairness and proportionality in fee calculations. Under Illinois law, impact fees may be collected so long as they are specifically and uniquely attributable to the activities of the new development. School, library and park district impact fees can only be used for capital expenditures or “bricks and mortar” projects. REALTORS® and builders argue that when the student population for existing homes is declining, it is a good time to re-examine impact fee structures. By eliminating or reducing impact fees, local governments can boost new home construction, creating jobs and boosting market activity. This nudge also provides the long-term benefit of new property tax payments and commercial and retail growth. This helps grow the tax-base and helps to keep property tax hikes at bay.

The “Impact Fees in Illinois” study has been updated. Download it at www.illinoisrealtor.org/ advocacy/research

Adherence to health and safety standards.

Municipalities should not require cosmetic repairs or upgrades. No disruption to the transaction. Municipalities should make every attempt not to disrupt or unduly interfere with time-sensitive real estate transactions.

IMPACT FEES – BACK ON OUR RADAR

Proposals for inspection ordinances tend to be introduced in municipalities where the housing stock is aging. Another issue that frequently comes up in new housing construction is

ILLINOIS REALTOR® January 2016

Illinois REALTORS® to represent the state at international real estate conference By Jon Broadbooks | Director of Communications Illinois REALTORS® will head to France in March to represent the state at one of the world’s largest real estate and development conferences. Le Marché International des Professionnels de L’immobilier, better known as MIPIM, will be held in Cannes, France, from March 15-18, and brings together real estate investors from around the globe. This is the second year Illinois REALTORS® have participated in MIPIM. The National Association of REALTORS® established a pavilion last year at the Palais Des Festivals in Cannes, and the state association was represented along with other REALTOR® organizations including Birmingham, Ala. and Miami. One of those attending last year was IAR President Mike Drews, who said he sees MIPIM as a long-term investment. “The people who go there are in charge of millions — if not billions — of dollars of capital that can be used for projects,” Drews said. “And while a deal might not get closed at the show, the pathways to making those deals happen in the future are made there.” According to MIPIM, 21,400 people attended the sessions last year, and more than a third of those at the event were registered as top corporate leaders and investors. In all, 89 countries were represented. “The exposure you get is out of this world,” said Maurice Hampton, managing broker at Centered International Realty in Chicago, who went to MIPIM in 2015. “In addition, you get education and exposure to the expansion of possibilities for yourself and your business which are limitless.” “This is a huge opportunity to promote Illinois, and not just Illinois but the entire Midwest,” he said. “Establishing these relationships can result in a one-stop shop for those who want to invest in Illinois.” For the past several years, IAR has committed to increasing awareness of the global real estate business. The association sponsored training for members to earn their Certified International Property Specialist (CIPS) designation, signed a cooperative agreement with a Mexican real estate association and created a task force to look at ways to meet the needs of a growing international clientele. Drews said going to MIPIM can have a direct impact on the state’s real estate market. If an investor makes a large commercial commitment in Illinois, the result can be added development and jobs. “If you are on the residential side of the business, it’s easy to say ‘this really doesn’t do much for me,’” Drews said. “But if a major development gets built, someone is going to have to sell the houses for those who work there.” “There’s tremendous potential for deals to be facilitated as an outgrowth of attending this event,” he said. Dan Wagner, senior vice president for government relations at the Inland Real Estate Group in Oak Brook and president of the Chicago Association of REALTORS®, said the show is worth attending. Not only are those who are ready to 34 www.illinoisrealtor.org

ABOUT MIPIM

MIPIM is an international trade show and conference held annually. When & Where: MIPIM will be held March 15-18, 2016 in Cannes, France. Who goes: CEOs and other corporate leaders; investors and government representatives, among others. Why go? Those who attend MIPIM include decision-makers who can funnel millions, and in some cases billions, of dollars into projects. Establishing contacts with these investors can pay dividends at a later date, as many of them are seeking a safe real estate haven for their money. Learn more: MIPIM has a website, MIPIM.com. If you are an Illinois REALTOR®, you will find information at www.illinoisrealtor.org and for conference attendees, a website, MIPIMIllinois.com, has been set up.

invest seriously looking at residential and commercial opportunities on which to spend money, but there are exhibits and competitions featuring innovation in architecture and development. “We’re representing the U.S., and clearly the U.S. is where people want to put their money because it’s seen as a safe haven for investment,” Wagner said. “That message came through loud and clear when people came to the booth. The Midwest in particular was seen as a better place to invest because of its core values and existing transportation infrastructure than many other parts of the world which are judged as being riskier.”

Maurice Hampton, Mike Drews, Jim Kinney, Gary Clayton, Doug Carpenter and Dan Wagner at MIPIM in 2015.

ETHICS HEARINGS In September 2014, the IAR Board of Directors approved publishing the results of ethics hearings throughout the state. These are the conclusions of ethics hearings and are not part of the Ethics Citation Program.

TIME PERIOD: May 1, 2015 to Sept. 30, 2015

Articles and supporting Standards of Practice (SOP) found by a Hearing Panel to have been violated and ratified by the Board of Directors

Previous violation(s) in last three (3) years?

Discipline and fines imposed

Yes or No

Complaint #1

Article 1

$500 fine; Letter of Warning; 1 continuing education course

Complaint #2

Article 1 (SOP 1-16)

$500 fine; 1 continuing education course

Complaint #3

Article 3 (SOP 3-9)

$1,000 fine

Complaint #4

Article 3 (SOP 3-9)

$1,000 fine

Complaint #5

Article 3 (SOP 3-9)

$1,000 fine

Complaint #6

Article 3 (SOP 3-9)

$1,000 fine

Complaint #7

Article 3 (SOP 3-9)

$1,000 fine

Complaint #8

Article 3 (SOP 3-9)

$1,000 fine

Complaint #9

Article 3 (SOP 3-9)

$1,000 fine

Complaint #10

Article 3 (SOP 3-9)

$1,000 fine

Complaint #11

Article 3 (SOP 3-9)

$1,000 fine

Complaint #12

Article 3 (SOP 3-9)

$1,000 fine

Complaint #13

Article 3 (SOP 3-6)

$250 fine

Complaint #14

Article 3 (SOP 3-6)

$1,000 fine; Letter of Reprimand; 1 continuing education course

Yes

Complaint #15

Article 9

Letter of Warning; 1 continuing education course

Complaint #16

Article 12 (SOP 12-9 and 12-10)

$500 fine

Complaint #17

Article 12

$250 fine

Complaint #18

Article 12

$250 fine

Complaint #19

Article 12

$250 fine

Complaint #20

Article 12

$250 fine

Complaint #21

Article 12 (SOP 12-13)

$500 fine

Complaint #22

Article 12

$250 fine

Complaint #23

Article 12

$250 fine

Complaint #24

Article 12 (SOP 12-5)

$250 fine

Complaint #25

Article 12

$250 fine

Complaint #26

Article 12 (SOP 12-10)

$750 fine

Yes

Complaint #27

Article 12 (SOP 12-3)

Letter of Warning

Complaint #28

Article 12

$250 fine

Complaint #29

Article 15

$5,000 fine, Letter of Reprimand; 2 continuing education courses

ILLINOIS REALTOR速 January 2016

TECH &YOU By Stephanie Sievers | Senior Editor

HIGH-TECH AND LOW-TECH WAYS TO STAY SAFER ON THE JOB When you head out to meet a client at a listing, have you told your office where you will be? Is your smartphone charged and accessible? Do you and your office have a safety action plan in place in case something goes wrong?

Safety is always a consideration given the nature of the job, but the 2014 murder of Arkansas REALTOR® Beverly Carter and other stories of crimes against REALTORS® have many agents on higher alert. In 2015, the National Association of REALTORS® (NAR) expanded its REALTOR® Safety Program and created a new three-hour safety course, “Real Estate Safety Matters.” NAR also offers a variety of articles, webinars, videos and other safety resources at www. realtor.org/topics/realtor-safety Looking for more tips on how to protect yourself while you do your job? Two industry safety trainers and NAR presenters — Tracey “The Safety Lady” Hawkins and REALTOR® Adrian Manzanares — share a few high-tech tools and low-tech advice that you can use before you head out to your next showing appointment or open house. “Agents do want safety training. Agents want to go home at night,” says Hawkins, a former REALTOR® who Tracey Hawkins started her own training company, Safety and Security Source, 20 years ago in Missouri and now teaches REALTOR® safety courses nationwide. Manzanares is a former Colorado law enforcement officer turned REALTOR® with Blue Picket Realty in Colorado Springs. Both have hosted safety webinars for NAR. Too often safety procedures take on Adrian Manzanares renewed importance only after an incident occurs. Safety training should be a priority all of the time and part of an agent’s ongoing education, Hawkins said. Staying safe also means using every weapon in your arsenal, including your smartphone. There are a number of mobile safety apps that can be helpful for REALTORS® to use when they are showing a listing or handling an open house. Some allow you to signal for help by opening the app; others notify your emergency contact list if you haven’t checked in on your app within an expected time. The apps won’t help, however, if you can’t get to them quickly, Hawkins said. “Keep your safety product, whether it’s pepper spray or an app on your phone, accessible,” she said. “It’s no good if you can’t reach it in a dangerous situation.” Make technology work for you. Some agents may be reluctant to hold open houses, but Hawkins says there are

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services such as Real Agent Guard’s Open House Video Monitor, that enable you to turn your laptop into a video monitor. Posting “video monitoring in place” signs throughout the listing, even if you don’t have the equipment, can serve as a deterrent and put potential criminals on notice if they think their images are being recorded, Hawkins said. Insist on meeting a new client at your office for the first time. If they can’t do that, use Skype or FaceTime as a way to meet. If a potential client still isn’t willing to do that, that’s a warning sign, Hawkins said. Manzanares shares a few low-tech ideas from his experience as a police officer. When Manzanares was assigned to a new sector as an officer, one of the first things he did was walk the neighborhood and familiarize himself with the area. The same tactic works for REALTORS®. If you are farming an area, make it a habit to walk or at least routinely drive through the neighborhood. Be familiar with who lives in the area and which cars are present. Then, when you are in the neighborhood for a showing or an open house, you may be more likely to know if something seems amiss, Manzanares said. “If there is something out of the ordinary, it sends out a red flag in the back of my mind. It may not be a threat, but I know that something is different,” he said. A few days before he schedules an open house, he introduces himself to the surrounding neighbors so they can be alert and call police in case he needs help. Manzanares also recommends buying a cheap notebook to leave in your car when you are out at showings. Keep it as a type of logbook, marking the time you arrive and depart a property and leave it in your car. If something happens, police can find it and have a timeline of your most recent whereabouts.

While 96 percent of REALTORS® have never been the victim of a crime on the job, 40 percent of REALTORS ® have been in a situation that made them fear for their personal safety or the safety of their personal information. Source: NAR 2015 Member Safety Report

VIDEO: REAL ESTATE, SAFETY AND YOU Watch and share the latest video from the National Association of REALTORS®, “Real Estate, Safety and You,” with your clients. The 3-minute video aims to familiarize consumers with the safety protocols they can expect as they work with their REALTOR® including meeting at the brokerage office initially and driving separately to a listing. https://youtu.be/MHi4yNfv9Vc

STAY SAFE WITH THESE APPS  Hawkins and Manzanares suggest some mobile apps — some free and some that require subscription service — that could be helpful for REALTORS®. XX MyForce — Push the icon on this app and you will be connected to a live MyForce operator who will listen to your conversation and notifiy police if you seem to be in trouble. RealEstateSafety.MyForce.com XX Open House Video Monitor by Real Agent Guard — The subscription service enables you to turn a laptop into a live video monitor. www.realagentguard.com/open-housevideo-monitoring

EDUCATE YOURSELF ABOUT SAFETY Learn how to limit your risk and increase your safety and that of your clients with the NAR safety course, “Real Estate Safety Matters: Safe Business = Smart Business.” The IAR Licensing & Training Center has the course licensed for three hours of elective continuing education if taken through one of its branch locations. Find a CE course schedule at www.illinoisrealtor. org/education/ce_courses. IAR members can also take it online (but not for CE credit) through the IAR Learning Library at http://learninglibrary.com/iar. The threehour course covers a variety of topics including: XX Risk considerations in the brokerage of real estate XX Safety systems and tools XX Safety protocol for showing properties and listing appointments XX Understanding physical and instinctual response to threats or attacks XX Conceal and carry considerations XX Data security for your business and your clients XX Protecting personal and electronic information

XX Secure Show — This online identity verification program allows you to run a potential client’s ID through a database to confirm that they are who they say they are. Once verified, the agent and the prospective client receive photos and verification codes of the other so they know who they

will be meeting. Verifications cost $6.95 each or less if ordered in bulk (code: realestatesafetysecureshow). www.secureshow.com XX Guardly — Mobile safety app that allows you to send emergency alerts to contacts or 911 even when your phone is locked. www.guardly.com/technology/ mobile-safety-apps.html XX Red Panic Button — When you push the panic button on your cell phone screen, it sends text message and email with a link to a Google Map and your GPS coordinates to the people on your emergency contact list. www.redpanicbutton.com XX Watch Over Me — Once you turn the app on, it will track your location for a set time. If you don’t tap the “I’m Safe” prompt when expected, it will send out an alert to your emergency contact list. www.watchovermeapp.com (Note: The products mentioned in this article are not meant to represent an endorsement by the Illinois Association of REALTORS®. Readers are encouraged to make an independent evaluation of any product before purchasing.)

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Call today to reserve your spot! (410) 772-0820 The publication of any advertisement of a product, service or education idea is not in any way to be construed as the approval, guarantee, or endorsement of IAR of such product, service or idea.

ILLINOIS REALTOR® January 2016

REALTOR® COMMUNITY FOLLOW US:

Illinois REALTORS® at NAHREP Convention IAR leadership attended the National Association of Hispanic Real Estate Professionals (NAHREP) convention in Chicago in September. The event included networking and education forums, business tips for agents working with Hispanic home buyers and sellers and a Latin music festival.

IAR October Business Meetings Bring Association Name Change At the fall business meetings in October in Oak Brook, the IAR Board of Directors voted to change the name of the organization from the Illinois Association of REALTORS® to Illinois REALTORS®. The new name will be in formal use in April. The Illinois YPN hosted a REbarcamp during the event that drew REALTORS® interested in sharing the latest technology and marketing ideas. Pictured from left to right, NAHREP Chicago, Immediate Past President Luigi Corral, NAHREP Chicago Secretary Gaspar Flores, Jr., IAR Immediate Past President Jim Kinney, IAR President-elect Doug Carpenter, 2016 IAR President Mike Drews, NAHREP National President-elect Joe Nery, IAR CEO Gary Clayton and NAHREP Chicago President Marc Hernandez.

Going Global with CIPS

Photo taken July 22 by Ramona Schimka of Mainstreet Organization of REALTORS®

IAR partnered with the Chicago Association of REALTORS® in October to offer the second course in the CIPS designation series, “Global Real Estate: Transaction Tools.” CIPS provides handson instruction on working with international real estate clients and transactions. IAR partnered with the Mainstreet Organization of REALTORS® earlier in 2015 to offer the first CIPS course.

Final GRI Course III Held in East Peoria As the Graduate, REALTOR® Institute course moves online, IAR members attended the final live classroom offering of GRI Course III in East Peoria on Dec. 2-3. In 2016, former GRI courses II and III become GRI Undergrad and will be offered online only. The GRI Grad course, which was also held in East Peoria, is the only GRI course that will be offered in a live classroom setting.

Naperville REALTOR® Gerami Appointed to Drone Task Force Naperville REALTOR® Scott Gerami, a broker with RE/MAX Professionals Select in Naperville, has been appointed by Gov. Bruce Rauner to the Unmanned Aerial System Oversight Task Force. The task force will study and make recommendations for the operation, use and regulation of drones in Illinois. Gerami has been featured in Chicago area media reports for his use of drones in his real estate business.

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ILLINOIS ASSOCIATION OF REALTORS® THE VOICE FOR REAL ESTATE IN ILLINOIS 2016 IAR OFFICERS President Mike Drews, GRI mdrews@dossrealtors.com President-Elect Doug Carpenter, ABR, AHWD, SFR doug21@comcast.net Treasurer Matt Difanis, ABR matt@mattdifanis.com Immediate Past President Jim Kinney, ABR, CRB, CRS, GRI, SRES jim.kinney@bairdwarner.com

Chief Executive Officer Gary Clayton, CAE, RCE Editor Jon Broadbooks Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer Katie Grant For advertising information contact Arlene Braithwaite, 410-772-0820, arlenetbg@comcast.net The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by the Illinois Association of R EALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster: Send address changes to: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217/529-2600. Opinions expressed in any signed articles of the ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of the Illinois A ssociation of REALTORS ®. Advertising of product or services does not imply endorsement. Advertising rates are available at www.illinoisrealtor.org or on request. Annual dues of every REALTOR®, REALTORASSOCIATE®, and Affiliate member of IAR includes $3 for a one-year subscription to the ILLINOIS REALTOR®.

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MARKET WATCH 2016 FORECAST: MODERATE PRICE AND SALES GAINS IN YEAR AHEAD Illinois continues to move into a more “normal” real estate market and as it does, home prices and sales are expected to experience positive gains in 2016. But these gains will be at a more moderate pace than last year, according to the annual forecast from the Regional Economics Applications Laboratory (REAL) at the University of Illinois. “Twice in 2015, in February and October, Illinois added jobs at a faster rate than the U.S. as a whole, with the October result the more surprising in view of the fact that Illinois still does not have a state budget,” said REAL Director Geoffrey J.D. Hewings. “The housing sales and price forecasts for 2016 for both Illinois and Chicago are still positive, but within smaller ranges month-to-month than those experienced in 2015.” In 2015, home sales and median price gains pointed toward a market rebound. Sales were higher most months and prices showed strong growth. Tight inventories limited choices for homebuyers, Dr. Geoffrey J.D. and played a role in price gains. Hewings Those issues — along with lingering state budget issues, a slower U.S. economy and potentially higher interest rates — will be factors affecting the market in 2016, but home sales and median prices are still expected to grow, but at a narrower pace, according to the forecast. Download a copy of REAL’s “Housing Price Forecast, 2016” at www.illinoisrealtor.org/marketstats. Here are some of the highlights: •

Median home prices are expected to increase, but at a narrower pace. On a year-over-year basis, price gains will range from 3.1 to 7.4 percent for Illinois and 3.5 to 9.5 percent for the Chicago PMSA. By December 2016, the median price of homes is forecast to be 5.0 percent higher in Illinois and 5.9 percent higher in the Chicago PMSA.

•

Home sales are forecast to experience positive gains in most months with milder rates and a narrower range than 2015. For Illinois, that range could be -1.19 percent to 9.11 percent. For the Chicago PMSA, the forecasted range is -1.06 percent to 4.22 percent. Find the full forecast at www.illinoisrealtor.org/marketstats

ILLINOIS REALTOR® January 2016