Illinois REALTOR® October 2019

OCTOBER 2019

THE VOICE FOR REAL ESTATE IN ILLINOIS

Marijuana and Real Estate From negotiating leases to disclosure, here’s what you need to know about the new state law

Rewrite Recap: 5 key changes to the Real Estate License Act

A clear vision for 2020 Meet President Ed Neaves

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THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® October 2019

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TABLE OF CONTENTS OCTOBER 2019

04 Inside Track

Staging tips for sellers

05 President's message

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Planning to do more for members

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Rewrite Recap: 5 key changes to the Real Estate License Act

06 Quick Takes

• Illinois REALTORS® podcasts • Taylor Good Neighbor Award finalist • Ten Illinois REALTORS® will serve in leadership roles for NAR in 2020

Commercial Corner

28 At the Capitol

Challenging 2019 spring session brings success on rent control, license law rewrite and more

35 RVOICE

Working for you in every corner of the state

36 Infographic

Buying trends in today’s tighter inventory market

37 Outreach

Illinois REALTORS® met with members at MREDpalooza

39 Community

Follow us:

Farmland prices not as robust, but still a strong investment

What do changes to marijuana laws mean to real estate?

Meet 2020 Illinois REALTORS® President Ed Neaves

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These REALTORS® won’t retire from who they 'R'

Stop, think before posting

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ILLINOIS REALTOR® October 2019

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INSIDE TRACK If you could share one staging tip for sellers, what would it be and why?

Staging plays a huge role in selling homes. Some of my go-to staging tips: enlarge room sizes by keeping one big item as a focal point and blend in the rest, add greenery when possible and incorporate bolder colors with decorative items.

Meenu Bhaskar

Keller Williams Revolution, Bloomington

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS 2020 OFFICERS President Ed Neaves eneaves@thesnydercompanies.com President-elect Sue Miller, ABR, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller001@aol.com Treasurer Ezekiel "Zeke" Morris zekemorris@zekemorris.com Chief Executive Officer Gary Clayton, CAE, RCE Deputy Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Vice President, Communications Jon Broadbooks

Spruce up a property that’s showing its age by changing out electrical sockets, switches and cover plates with new white ones. This simple, affordable change leaves the impression the home has been well maintained and updated.

Niko Apostal

The Apostal Group at Keller Williams Chicago-Lincoln Park

The front porch, door and landscaping are crucial things to stage and tidy up. While buyers are waiting to get in, they are looking around and noticing how things are cared for. First impressions are important.

Jane Hay

Jane Hay Sales & Staging at The Real Estate Group, Springfield

Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer David Hine For advertising information contact Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and O ­ ctober by the Illinois REALTORS®, 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 R ­EALTORS®. Advertising of product or services does not imply endorsement.

Advertising rates are available at www.IllinoisRealtors. org or on request. A ­ nnual dues of every REALTOR®, R ­ EALTOR-ASSOCIATE®, and Affiliate member include $3 for a one-year subscription to the ILLINOIS REALTOR®.

VOLUME 56: NUMBER 4

Declutter as much as possible. Rooms tend to look bigger and more spacious with fewer items. This includes taking down pictures if there are too many frames.

Luis Ortiz

RE/MAX Partners, Berwyn *Answers provided are the personal opinions of the members questioned and do not constitute endorsements or sponsorship by Illinois REALTORS®.

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PRESIDENT'S MESSAGE Association’s mission should always ask how we can do more for members, clients

Ed Neaves

2020 President

Note: Find coverage and photos from the Inaugural Gala at

bit.ly/Neaves_InauguralGala

#2020Vision #FocusOnTheFuture

If there’s one thing that stands out about Illinois REALTORS® membership, it’s the fact that we do more.

It may be making sure burst pipes are fixed and damage cleaned up during a January polar vortex, lending a hand (and a strong back) to help move furniture for a first-time homebuyer or working with military veterans to help them realize the dream of homeownership.

Doing more could also be defined by contributing volunteer leadership to this association and so many other local organizations.

For Illinois REALTORS®, the mission of helping others is part of our DNA, which is why this year I wanted the state association to focus on telling the stories of those who make their communities – and our state – such a great place to live and work.

This summer, I asked local REALTOR® associations to share photos of their members' community involvement in advance of the association’s business meetings. The results, which were displayed at the inaugural banquet, clearly showed our members’ work to give more, do more and contribute more.

Throughout 2020, you’ll see an emphasis on our members, the important role they play in our state and the future of the association which represents them. You might say we are looking for 20/20 vision in 2020, a clear, honest review of where we are and what we are going to do to make the association more relevant to its members.

Any association must constantly gauge its success by how much it does for its members and those its members serve.

In other words, to do more, we must always strive to be more.

As we begin work on a new strategic plan for the association, having 20/20 vision in 2020 serves as a reminder of our members’ importance, and clearly puts the focus where it should be.

Ed Neaves, president Illinois REALTORS®

ILLINOIS REALTOR® October 2019

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QUICK TAKES Favorite interior design style in Illinois? Industrial Neighboring Missouri may favor MidCentury Modern design treatments while Indiana goes for the more Rustic look.In Illinois the Industrial aesthetic of exposed brick, open layouts and factory-style features tops decorating wish lists.

The furniture company Joybird analyzed the top interior design online searches by state and region and broke them down into 18 different categories including everything from Coastal and Bohemian to Urban Modern and Art Deco. The Industrial look was the most popular, coming in as the top searched style in 12 states. Vintage, Shabby Chic, Mid-Century Modern and Minimalist rounded out the rest of the top five.

Baker named to Springfield Business Journal’s 40 Under 40 Illinois REALTORS® Deputy Chief Executive Officer Jeffrey T. Baker was named to the Springfield Business Journal’s 40 Under 40 class for 2019. The winners are chosen based on their contributions to the Springfield area business community and represent a variety of occupations and community affiliations.

Baker was named deputy CEO in April and is expected to become the association’s executive leader in 2021. bit.ly/Baker_40Under40

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bit.ly/Industrial_Illinois

Fewer homeowners will be tackling home improvement projects lowered its projection for remodeling activity spending to $323 billion by the second quarter of 2020. What is causing the remodeling downturn? Chris Herbert, the center’s managing director, points to declining home sales and homebuilding along with slower gains in permitting for remodeling projects. bit.ly/Remodeling_Downturn

Residential remodeling activity is expected to drop sharply by mid-2020, according to the latest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.

With homeowners expected to spend less on improvements and repairs, the center has

Leading Indicator of Remodeling Activity - Second Quarter 2019 Homeowner Improvements & Repairs Four-Quater Moving Totals in Billions

$440 $400

6.1%

6.1%

6.3%

Four-Quater Moving Rate of Change LIRA PROJECTIONS 6.9%

7.1%

7.0%

6.8%

6.3%

5.5%

5%

3.0%

$360

0.4%

$320 $280

10%

292

296

301

308

313

316

322

328

331

326

323

-5%

$240 $200

0%

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

-10%

Note: Historical estimates since 2017 are produced using the LIRA model until American Housing Survey benchmark data becomes available. © PRESIDENT AND FELLOW OF HARVARD COLLEGE

Get more of the story with Illinois REALTORS® podcasts

Taylor NAR Good Neighbor Award finalist Congratulations to Dale Taylor, a broker for RE/MAX 10 New Lenox, who was one of 10 finalists chosen from around the country for the National Association of REALTORS® 2019 Good Neighbor Awards.

Taylor is being recognized for his volunteer work helping the homeless with the nonprofit organization South Suburban Public Action to Deliver Shelter (SSPADS).

REALTOR® Magazine will announce the five Good Neighbor Award winners and five honorable mentions in October. All will receive grant money to help their chosen charities.

Read more at bit.ly/Taylor_GoodNeighbor

Whether you’re driving to your office, working out or waiting for a plane, Illinois REALTORS® podcasts provide members with valuable real estate news and information through their smartphones, tablets or laptops.

With more than 20 episodes to choose from, this new member benefit offers in-depth conversations and coverage about everything from license law updates and industry public policy issues to marketing strategies.

And now the podcasts are available through iTunes, Spotify, Tune In and Google Play Music. With iTunes, you can get easy access to the podcasts as they come out by choosing to “subscribe” to Illinois REALTORS®. With Spotify, choose “follow” Illinois REALTORS®.

With Tune In, click the “favorite” button. With Google Play Music, choose “subscribe.”

Ten Illinois REALTORS® will serve in leadership roles for the National Association of REALTORS® in 2020

Ezekiel "Zeke" Morris COMMITTEE LIAISON

Morris will work with the Diversity, Housing Opportunity and State and Local Issues committees, and the Smart Growth Advisory Board

Pat Callan

Reserves Investment Advisory Board VICE CHAIR

Matt Difanis

Professional Standards Committee CHAIR

Matt Farrell

Real Property Operations Committee CHAIR

Nykea Pippion McGriff

REALTOR® Party Member Involvement Committee

Chris Read

Conventional Financing and Policy Committee CHAIR

CHAIR

Michelle Mills Clement Global Business Councils Forum VICE CHAIR

Moses Hall

Commercial Economic Issues and Trends Forum VICE CHAIR

Maurice Hampton

Certified International Property Specialist (CIPS) Advisory Board VICE CHAIR

Matt Silver

Federal Legislative and Political Forum VICE CHAIR

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LEGAL UPDATE Real Estate License Act of 2000 rewrite explained

Elizabeth A. (Betsy) Urbance

General Counsel and Vice President of Legal Services

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

Go to www.

IllinoisRealtors. org/RELA_Rewrite for more in-depth information on the Real Estate License Act of 2000 rewrite.

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As you may already be aware, the Illinois Real Estate License Act of 2000 (RELA or the Act) was due to “sunset” at the end of 2019.

This is a regular “thing” for licensing laws, and knowing this was on the horizon Illinois REALTORS® set to work organizing a task force to study, consider and recommend changes for a rewrite of RELA. The task force was divided into several subgroups where members rolled up their collective sleeves and dove into their particular focus areas to vet ideas for changes that would protect consumers and bring the brokerage practice and the Act into the future. Once the task force work was complete, its initiatives were presented to the Illinois REALTORS® Board of Directors for approval. After that, Illinois REALTORS® had its “wish list” for the next iteration of RELA. End of story, right? Not so fast.

The initiatives were translated into official legislative language in the form of a proposed bill. Deputy CEO Jeff Baker and the legal team translated the task force recommendations into official legislative language in the form of a proposed bill.

Once there is draft language, all that is needed is legislative approval, correct? Sort of.

Illinois REALTORS®’ governmental affairs department took action to navigate the legislative process. However, there was a little wrinkle. There was a pending race for governor of Illinois, which raised a question: Would the newly elected administration be the same or different and would either even want to pursue a rewrite? Or would there simply be an extension to the existing Act? With the installation of a new governor, Illinois REALTORS® reached out to see if there could still be a plan for a rewrite in the Spring legislative session.

After all, time was short. To the credit of the state Department of Financial and Professional Regulation (IDFPR) and its new director of the Real Estate Division, Mario Treto, the agency agreed to meet with the state association at the negotiation table to see if we could hammer out a compromise bill.

All of that came to pass in a relatively short period of time. Through the efforts of so many different team members at both Illinois REALTORS® and IDFPR, this agreed-to bill flew through both chambers on its way to unanimous passage. Gov. J.B. Pritzker signed the RELA agreed bill into law on Aug. 9, 2019, making it effective on that date.

A summary of five general changes in the RELA bill

Five broad categories of changes in the Illinois Real Estate License Act are summarized below: 1. Paperless Practice & Technology Listed below are items that, when

considered together, point to the fact that both IDFPR’s administration of licenses and the practice of real estate brokerage will happen in an electronic environment.

IDFPR is moving away from paper licenses and sponsor cards. Rather than signing a paper sponsor card,

sponsoring brokers and licensees will go to IDFPR’s online portal to add licensees to sponsoring brokers or to terminate sponsorships. Proof of sponsorship will be required as opposed to signing and mailing sponsor cards.Rather than displaying licenses on office walls and carrying a pocket card, RELA provides for electronic license production. A licensee might print her license or carry a copy in her phone.

• Section 5-40(a) contains language about notifying IDFPR of sponsorship changes within 24 hours.

• Section 5-50(e) deletes the pocket card requirement, but mandates that licensees prove they are licensed, such as by carrying an electronic version of a license.

• New provisions cover virtual offices: While a physical brick-and-mortar office space is still allowed under RELA, and there are provisions that continue to apply to physical offices, provisions are now included which allow for brokerages to use virtual offices.

• Go to Section 5-45(d) in the Act noting the removal of the definite office requirement.

• Also, in Section 5-45(d) there is language regarding the maintenance of electronic records that must be protected just like physical records. In addition, the brokerage must provide ways for IDFPR to access electronic records for audit and enforcement purposes.

• Rules will be promulgated to further clarify what a virtual practice might look like.

2. Licensing & Management The items in this category relate to age requirements, education changes and managing broker supervision requirements for new broker licensees.

It is important to note that many of the concepts presented already existed under the Act, but the new provisions are more specific with the goal of producing better and more professional real estate brokers

both for the benefit of the industry and for the protection of consumers.

Age change in Act: First, Illinois REALTORS® License Law task force gave a directive to the state association that it advance an initiative to allow for broker licensees to be 18 years old. The thinking was that with proper training and oversight, a high school graduate could become a productive real estate broker without having to attend college first, or even just before reaching a certain age.

Some 18-year olds are ready to be professionals (with proper training and oversight). Likewise, some practitioners, while chronologically older, won’t ever be ready or choose to be a professional.

Also, if a new broker licensee does not successfully complete the 45-hour postlicense education in the allotted time, he will not be allowed to renew.

Reducing the entry-level age results in changes. The RELA rewrite did reinforce the need for restructuring the pre- and post-license education and oversight requirements.

Education requirements changes: The pre-license broker education requirement changes from 90 hours to 75 hours, with the goal being that a tighter, reduced course will get new licensees started, but real-world practice will help them learn better as they move into the post-license education modules.

The post-license broker education requirement changes from 30 hours to 45 hours which will be divided into three, 15-hour segments, each requiring passage of a 50-question exam. The three courses will focus on: • Applied brokerage principles • Risk management and discipline • Transactional issues Requirements for managing broker supervision: Managing broker supervision was a significant concern for both the Illinois REALTOR® task

force and IDFPR. While supervision requirements are currently contained in the regulations for RELA, those requirements are now part of Section 10-55(a) in the Act. Section 10-55(b) provides further specific oversight duties upon the designated managing broker for new broker licensees who have not completed their 45-hour postlicense education. The areas covered are those that typically present challenges for new licensees.

The designated managing broker will need to oversee the handling of any escrow funds or earnest money.

The designated managing broker will need to oversee the negotiation of contracts in the new broker’s real estate transactions.

Again, the law required managing brokers to adequately train and supervise brokers. The changes here reinforce the importance of those requirements and are aimed at ensuring beginning Illinois brokers are well-trained.

3. Teams & Advertising This was one of the biggest “hot topics” and concern areas for the task force. The concerns revolve around advertising and being truthful to the public.

The public should know when and if they are dealing with a licensed real estate brokerage company. They should also know that a team is a group that works within the sponsoring brokerage company and should avoid the appearance that a team is really its own entirely separate company.

Advertising in general: The Act incorporates the “one-click” rule. This means a real estate licensee or brokerage can create a link or some bit of electronic information and, so long as all of the required information is contained in the content that populates on the device being used as a result of that “click,” the content will be compliant with the Act (similar to the NAR Code of Ethics).

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There is a requirement that any team or licensee’s name in an advertisement be no bigger than the sponsoring broker’s company name, which must be in the advertisement. RELA used to have a specific size requirement, however it was removed in a prior amendment of the Act. Since that time, sponsoring broker’s company names, if they are present at all, have become increasingly hard to find.

A team operates within a sponsoring company, so an advertisement should not appear that the team is the sponsoring company. Again, this was a task force initiative that was unanimously approved and recommended by the Illinois REALTORS® Board of Directors.

The Section 10-30(g) requirement that the designated managing broker (the sponsoring broker’s contact person for IDFPR), must identify herself when her name is used in ads as a requirement under the rewrite adding the word"designated" to indicate the managing broker "in charge." However, if a licensee holds a managing broker license, she can now use managing broker on advertising materials since this reflects a level of education and licensing she has attained. This was important to Illinois REALTORS® who strongly support those who have sought out additional training and education.

Teams generally: “Team” is now defined under RELA in Section 1-10 as: any two or more licensees who work together to provide real estate brokerage services, represent themselves to the public as being part of a team or group, are identified by a team name that is different than their sponsoring broker’s and sponsored by the same sponsoring broker. “Team” does not mean a separately organized, incorporated, or legal entity.

Teams and advertising: The now former Act already prohibited any advertising that is false, deceptive or 10

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misleading in any way. As a result, as a factual matter many existing team names were, or if fully vetted, would have been deceptive per the prior version of RELA. The new provisions clarify existing law, prohibiting terms that are inherently misleading because they imply the team is the sponsoring brokerage. Prohibited terms for team names are: • Company • Realty • Real estate • Agency • Associates • Brokers • Properties • Property

Stay tuned for more explanations and proposed rulemaking to implement the provisions of this rewrite.

4. Consumer Protection & Business Practices REALTORS® have always set a high bar for industry professionalism, not just for the benefit of practitioners, but also for the benefit of the clients whom brokers owe a duty to protect.

Accordingly, Illinois REALTORS® task forces were focused on consumer protection from the start. In addition, IDFPR has a mission of consumer protection together with establishing the standards for professional real estate licensees in Illinois.

One change in the Act deals with compensating consumers or aggrieved persons who have been financially injured by licensees in the course of

their representation. Other changes focus on business practices that can be used to the detriment of (usually) distressed property owners, like guaranteed sales plans or wholesaling.

Changes have been made to Sections 20-85 and 20-90 regarding the Real Estate Recovery Fund, which was established to compensate those harmed by licensees. The former provisions made it almost impossible for a person who has been financially harmed to recover from the fund. The newer version of the Act removes most of the obstacles, which should actually encourage use of the Recovery Fund.

With regard to business practices, in Section 1-10, the definition of “broker” has been amended to include the practice of “wholesaling” if used as a business model. Generally, “wholesaling” involves the practice of entering contracts to purchase property, then quickly assigning that contract to another buyer for a profit.

When done as a business practice, “wholesaling” will now come under RELA’s enforcement provisions and the wholesaler will need a real estate broker’s license, as well as be subject to consumer protection provisions such as disclosure of self-interest and prohibition against dual agency.

Guaranteed sales plans have always been covered by the Act, but now they are defined in a separate and distinct section. There are very specific requirements a licensee must meet when offering a guaranteed sales plan to a consumer. These provisions are contained in new Section 10-50.

5. Miscellaneous This catchall provision is provided to point out some changes in the rewrite that did not quite fit within the prior categories: “Ministerial acts” was deleted as a defined term in the Act. It became clear over time that some licensees sought to use “ministerial acts” disclosure giving

it to opposing parties in a transaction in order to avoid disclosed dual agency and to avoid owing any agency duties to either party. This was an attempt to create a facilitator or transactional non-agent, which was not a specific option under RELA. A licensee can still represent one party and treat the other as a customer by giving proper notice of no agency to the customer and performing clerical or administrative acts to assist the licensee’s own client.

Regarding leasing agents, there is a global change to call them residential leasing agents. This clarifies the limited nature of this license. Also, the required CE for residential leasing agents will be eight hours instead of the current six for each two-year renewal cycle.

There are some new categories added to the Section 5-70 CE course topics, such as “transaction management,” “broker supervision,” “use of technology” and “professional conduct.”

Section 10-20(e), which allows a licensee to form an entity for the purpose of receiving his compensation from his sponsoring broker, has been amended to allow for a two-owner entity IF the owners are spouses and are both licensed and sponsored by the same company, or one spouse is licensed and the other spouse is not licensed.

There is a provision regarding a citation program that makes late completion of CE subject to a fine, without disciplining the licensee, unless the licensee is habitually late or egregiously non-compliant.

Conclusion

Stay tuned for more updates about this newly effective license Act, as well as more explanations and proposed rulemaking to implement the provisions of this rewrite.

IDFPR has assured Illinois REALTORS® that for those provisions that take effect immediately, deference will be given if the licensee and/or the sponsoring brokerage company show diligence and attentiveness to coming into compliance as soon as is practicable.

Other provisions, such as the new broker license pre- and post-license education requirements will require some transition provisions.

Finally, perhaps most important in the near-term, keep in mind that many of the new provisions are not really changes to the concepts that previously existed, but clarifications so that those who must operate under the Act have better guidance for compliance and know IDFPR’s expectations should they experience an audit or investigation.

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

Hours: 9 a.m. - 4 p.m.

Monday – Friday Phone: 800-952-0578 Email: afierstos@ IllinoisRealtors.org

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION The ILLINOIS REALTOR® (ISSN-07442211) is published four times a year (January, April, July, October) for $3.00 per year by the Illinois REALTORS®.

The offices of publication and the headquarters and general business offices of the Publisher, Gary Clayton, are located at 522 S. Fifth Street, P.O. Box 19451, Springfield, IL 62794-9451. The sole owner of the publication is the Illinois REALTORS® at the address listed above. There are no known bondholders, mortgage or other ­security holders.

Total # copies (net press run) Paid/requested subscriptions Sales through dealers and carriers Other classes mailed through the USPS TOTAL PAID DISTRIBUTION Free distribution by mail Free distribution mailed at other classes Free distribution outside the mail Total free distribution TOTAL DISTRIBUTION Copies not distributed TOTAL Percent paid

Avg. # copies ea. issue during last 12 mos.

46,393 45,652 0 5 45,657 27 22 12 60 45,718 675 46,393 98.86%

Actual # copies single issue nearest filing 46,750 46,113 0 5 46,118 22 32 0 54 46,172 578 46,750 99.88%

I certify that the information stated is true and complete ~ Jon K. Broadbooks, Editor

ILLINOIS REALTOR® October 2019

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Marijuana and Real Estate From negotiating leases to disclosure, here’s what you need to know about the new state law

By Stephanie Sievers, Senior Editor

O

n Jan. 1, 2020, Illinois becomes the 11th state in the country where the recreational use of marijuana is legal. The new law allows adults aged 21 and older to purchase regulated marijuana from licensed dispensaries around the state.

Illinois already allows for medical marijuana but this new shift legalizing recreational use will greatly broaden the industry’s impact not just on the state’s economy but also the real estate industry.

How will a legalized marijuana industry affect commercial and residential real estate? Illinois REALTOR® talked to those with experience locating dispensaries, REALTOR® associations who lobbied to adjust regulations and lawyers who are working to provide guidance. u

AT A GLANCE:

The Cannabis Regulation and Tax Act Beginning Jan. 1, 2020, Illinois residents over the age of 21 will be able to purchase, possess and recreationally use cannabis products.

The cannabis must be purchased from licensed dispensaries and there are limits on how much you can possess.

• 30 grams of cannabis flower • Five grams of cannabis concentrate • No more than 500 milligrams of THC in cannabis-infused products • Possession limits for non-Illinois residents are half that of residents Source: “Adult Use Cannabis Summary” bit.ly/IL_Cannabis_Summary

Illinois home growing limited to medical marijuana users The state’s medical cannabis program will continue and only those people will be allowed to grow cannabis in their homes. Home growing will be limited to no more than five plants that are five inches or taller. Plants must be enclosed in a secured location.

Local governments can opt out Home rule units and some non-home rule counties can enact ordinances and zoning restrictions to prohibit or limit the establishment of cannabis businesses within their boundaries.

Local governments can also regulate

on-premises consumption at or in a cannabis business.

Creating social equity in the industry Low-interest loans to help offset expensive start-up costs and lower application fees are meant to encourage minority business ownership in areas disproportionately impacted by the war on drugs. A portion of tax revenue generated from the cannabis industry will be directed back into those communities.

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Commercial Real Estate In states where medical and recreational use is legal: 27 percent of REALTORS® had seen an increased demand for warehouse space, 17 percent in storefronts and 14 percent in land.

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% of members had seen commercial property values increase near dispensaries; 66 percent saw no change *

Impact on the commercial market

If there is one area that will be most affected by legalized marijuana, it’s commercial real estate.

Twenty growing facilities and 55 dispensaries were licensed in Illinois when medical marijuana was legalized in 2014. That number is expected to increase now that the state has expanded marijuana use to all adults 21 and older.

Under the newly passed law, Illinois will phase in new licenses for dispensaries, infusers, craft growers and transporters over the next few years.

That will mean heightened interest in industrial and retail sites that could be used for marijuana production and sales.

“I hope it will be a nice steady growth,” says REALTOR® Deena Zimmerman, vice president of SVN Chicago Commercial, who has worked with commercial retail clients since medical marijuana was legalized and is building a niche in the market.

Zimmerman said she noticed a shift in Illinois as soon as J.B. Pritzker, who spoke out in favor of legalized marijuana on the campaign trail, was elected governor.

There was a greater sense of urgency by

marijuana-related companies to scout out available locations because there will be more competition for the limited space available, she said.

That’s a big change from a few years ago when medical marijuana became law.

“Back then, you picked up the phone to call a broker or an owner regarding the use, they were like, ‘what, marijuana!’”

Zimmerman said. “It was a big taboo.”

“The conversations are really different now,” she said. “Owners are more open to it because they understand financially what this will mean. (Tenants) still go through the same vetting process, probably more so actually.”

If Illinois is like Colorado, the expansion of marijuana could have a big impact on industrial real estate.

“There were a lot of landlords at the outset who said, ‘there’s no way I’m going to lease my property to a marijuana grower,’ only to find out that they became pretty fantastic (tenants) by and large,” said Scott Peterson, general counsel of the Colorado Association of REALTORS® “They always paid their rent, they were willing to pay above market (price), they had low parking requirements generally and were pretty good users of industrial office space,” he said. “The industrial rents of downtown Denver have skyrocketed.”

Colorado was at the forefront of the legal marijuana movement and Peterson said the new industry helped boost the state’s real estate market during the recession.

“It saved a large segment,

Residential Real Estate More than three-quarters of members in states where marijuana is legal had not seen a change in residential property values near dispensaries.

particularly metro Denver’s industrial market,” he said. “Those were the only people doing deals.”

Legalization has also been a boon for Colorado’s economy.

Since recreational use was legalized in 2014, the state has collected more than $1 billion in tax revenue, some of which is earmarked for affordable housing measures, said Elizabeth Peetz, vice president of government affairs for the Colorado Association of REALTORS®.

Illinois REALTORS® should be mindful that working in the marijuana arena can be more complicated than typical commercial transactions.

The biggest issue is that even though marijuana use will be legal in Illinois, it is still illegal on the federal level. That means it is largely a cash business since clients can’t go through traditional, federally-backed banks for loans to purchase or lease property.

And even if a landlord or property owner is open to working with a marijuana client, some are still leery of the prospect of dealing with cash and where it is coming from, Zimmerman says. Some marijuana companies may choose to just buy their own property outright as a result.

There is also the prospect of finding suitable sites, particularly in urban areas since there are state and local restrictions on how close a growing facility or dispensary can be to schools, day cares and residential areas.

Because of these restrictions, Zimmerman said there could be heightened interest in secondary and tertiary markets where there is more available open space.

The legalization of medical marijuana

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Deena Zimmerman 14

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% said there was available residential inventory despite all-cash purchases in the marijuana industry; only one percent said the industry has caused tightened housing inventory *

Scott Peterson

has already brought in a number of marijuana growing companies that have located downstate cultivation centers in rural areas such as Delavan south of Peoria, the small community of Barry in Pike County and Kankakee.

Zimmerman acknowledges that not every REALTOR® will be interested in working with marijuana companies or investors. It is important, however, that everyone stay informed and open to the topic.

“You don’t have to get into it and represent clients because it is a lot of work,” she said. “But at least educate yourself because you would be doing your clients a disservice if you don’t understand the basic rules.”

Residential growing more restricted in Illinois

The impact of legalized marijuana on Illinois’ residential market may be less pronounced than in other states simply

Residential Leasing

because the state’s lawmakers put tight restrictions on who can legally grow marijuana in a home.

Only registered participants of Illinois’ medical marijuana program will be allowed to grow their own cannabis plants and they will be limited to no more than five plants which are five inches or taller. Cultivation must take place in an enclosed, locked space.

That’s a stark contrast to Colorado, which initially allowed as many as 99 plants per person in a home. With multiple people in a home, that could mean sizable – and sometimes illegal – commercial home-growing operations.

“That had an impact on residential safety, on smells or noxious odors, on people’s perceived sense of property values,” Peterson said. “We didn’t have a really good legislative definition or limitations on what home grows could be for a long time.”

In 2017, Colorado REALTORS® was among a broad coalition that lobbied the state legislature to reduce the number of plants which could be grown to 12

per household or 24 for those with a medical license and registration, said Colorado’s lobbyist Peetz. The legislation also allocated more money to enforce the rules change.

Nearby Michigan allows anyone to grow marijuana at home, but that state also sets the plant limit for personal cultivation at 12. Like Illinois, Michigan is in the early stages of establishing the industry.

Recreational marijuana was approved in 2018, but there have been roadblocks in getting the licensing structure set up for sales, said Becky Gean, legal affairs manager for Michigan REALTORS®. The state is now anticipating sales to begin in 2020.

“As of right now, it’s kind of a weird limbo where it’s legalized, but there’s really nowhere to purchase it,” Gean says.

A top question from Michigan REALTORS® is whether they can safely work on transactions involving the marijuana industry, she said.

“There is a lot of uncertainty. They can do it, but just be aware,” she said.

“REALTORS® are probably going to be asked for advice far outside of their area of expertise so if you are going to work with a client that wants a property for a marijuana purpose, tell them to get an attorney.”

Because of the federal issues, REALTORS® have to be aware that they probably won’t have a title company, escrowing or other elements of a more traditional transaction, Gean said.

To disclose or not to disclose

Another big question that comes up involving residential properties and marijuana is whether sellers must disclose whether it was grown on the property.

About one-third of residential property managers had seen addendums added to leases to restrict growing and smoking on properties.

36

% of property managers have no issues leasing the property after marijuana use on the property; but 18 percent said the smell is difficult to remove *

Elizabeth Peetz

Becky Gean ILLINOIS REALTOR® October 2019

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Gean said for Michigan, the answer is ‘no’. Marijuana isn’t considered to be an environmental hazard so beyond that it would only be disclosing the usual material defects – water leaks, electrical issues or any other standard situations – that would be reported normally if present in a property, she said.

In states where there have been large, illegal growing operations, residential homes may have been rewired to bring in more electricity and the high moisture environment needed to grow plants could create other physical defects, such as mold.

Illinois REALTORS® General Counsel Betsy Urbance said that an agent’s duties should remain largely unchanged.

“Our brokers are not the marijuana police, nor are they the marijuana experts,” she said. “Our job is to recognize a defective condition generally.

If the home is extra humid and they see a substance, they would do what they would any other time there appears to be an excess moisture situation.”

“I think all of the same concerns and duties remain unchanged, it’s just a different factual context,” Urbance said.

On the flip side, Colorado has found that a legal room set aside for growing marijuana can be a sought-after benefit for some homebuyers.

“If somebody has a nice lighting system and water system, ventilation and a good room in the center of the house where they can grow marijuana, that is considered an amenity for a lot of buyers,” Peterson said.

Leasing & Property Management

Illinois’ new recreational marijuana law will allow adults to smoke marijuana

or consume cannabis concentrate products in private residences, but what does that mean for someone living in a rental property?

Just as a landlord can craft a lease that prohibits cigarette smoking, it can also apply to smoking marijuana.

A landlord can’t tell a tenant they can’t use marijuana, but they are within their rights to prohibit smoking in general through a smoke-free policy as long as it is specifically written into a lease, Urbance said.

“If your home is a rental home and your landlord or property manager says the property is smoke free, then you can’t do it by means of smoking,” she said.

Michigan has fielded questions about the risk of civil asset forfeiture for residential property landlords or even commercial property owners who rent out warehouse space for grow operations.

Gean said Michigan extends protections

Commercial Leasing

to those using properties legally under the state’s recreational law. There might be a slight technical risk since marijuana is still illegal at the federal level, but multiple states have legalized possession and use of marijuana, medical and otherwise, and the federal government has made no move to enforce federal rules, she said.

Brokerages and office policies

The legalization of recreational marijuana also raises the question of whether brokerages should address usage in their office policies.

Urbance says a reasonable policy would be to generally require that agents not be impaired while on the job.

Particular drug or alcohol use doesn’t have to be spelled out.

“You can’t really govern what someone does legally with their own time, but you can govern what someone does on your time,” Urbance said.

“You can have an office policy about not being impaired on the job, that just

6

% of commercial members leased to marijuana-related businesses in states where medical and recreational use were allowed.

Betsy Urbance 16

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Half of commercial members reported that no additional addendums were added to leases.

38

% of landlords would not accept cash for rent *

Jamil Taylor

makes sense,” she said. “They are still operating under your shingle.”

In the video, “Window to the Law: Legal Marijuana and the Real Estate Professional,” National Association of REALTORS® legal staff also cautions against putting too many restrictions in place and blurring the line between contractors and employees.

“While independent contractors are allowed the freedom to conduct their business activities as they choose, a brokerage could include guidelines in its independent contractor agreement on the salesperson’s usage of legal marijuana,” NAR legal said. “The brokerage needs to be careful not to exercise too much control over its independent contractors to avoid having them classified as employees.”

More about the new law

There are other elements of the new law worth noting, including efforts to promote social equity and encourage minority industry ownership and development in Illinois communities that have been hardest hit by previous drug enforcement efforts.

Low-interest loans to help offset expensive start-up costs and lower application fees are meant to help potential applicants from disproportionately impacted areas – defined by the law as economically disadvantaged and affected by high rates of arrest, conviction and incarceration due to marijuana violations – get into the highly competitive industry.

“I think the industry needs it.

Selling a Grow House

Communities that have been hit hard by the war on drugs need the opportunity to be able to make investments in the industry,” said Jamil Taylor, director of business development for Viola Brands and co-owner of Justice Grown, two cannabis companies with operations in multiple states.

“It really has to have a balance here, and I think Illinois is going to do its best to make sure social equity is a part of the new law and a part of its application process,” he said.

Taylor, whose companies are working with Zimmerman to find potential Illinois locations, said his companies are established in the industry and will not be applying for the social equity loans, but said the effort could bring needed diversity to the industry.

Twenty-five percent of the tax revenue from the marijuana industry will also be earmarked to aid these communities with economic development, violence prevention services and youth development as part of the Restore, Reinvest and Renew Program, according to the law.

The law also allows local governments to decide if they want to allow marijuana businesses to locate within their boundaries. Illinois communities are now debating whether to prohibit sales outright or allow them and reap extra tax revenue.

Even if a community does not allow marijuana sales now, it’s important for local governments to research all the options because the prospect may come up again as the industry grows, says 2020 Illinois REALTORS® President-elect Sue Miller, who also serves on the McHenry City Council.

One in 20 of those surveyed had sold a grow house in areas where both recreational and medical marijuana are legal

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% said it was not hard to sell a grow house; 33 percent said it was Seven in 10 disclosed it was a grow house *

Sue Miller

McHenry is leaning toward allowing dispensary sales, but prohibiting onsite consumption, Miller says. City staff is researching how it would work and where dispensaries would be located.

The council hopes to make a decision in November, she said.

“Whether we like it or not, it’s a legitimate business now,” Miller said.

“And like all other businesses, it’s allowed to exist and as a community, why would you ever stand in the way of a legitimate business.”

Gearing up for Jan. 1

So what can Illinois REALTORS® do to prepare for the changes legalized marijuana will bring to the state and the real estate industry?

Zimmerman urges people to stay informed. New information is coming out all the time as the state prepares to implement the law. Stay up-to-date and don’t be afraid to ask questions, she said.

“Cautiously embrace the change because I do think that in the net it has had a generally positive impact on the real estate transaction velocity, on volume, on values,” said Colorado’s Peterson. “I think it’s probably here to stay and will only get more expansive.”

Urbance encourages REALTORS® to read what they can about it and make themselves generally familiar.

“You don’t have to be an expert unless you want to become one and be aware that while it is illegal on the federal level, it is legal in Illinois and apply analogous concepts depending on the situation,” she said.

“Your first concern should be helping your client in the best professional, ethical and legal way that you can and send them to their own attorney to answer their legal questions and to address any concerns where federal and state law conflict,” Urbance said. * SOURCE FOR ALL INFO BOXES: “Marijuana and Real Estate: A Budding Issue,” National Association of REALTORS®, November 2018

ILLINOIS REALTOR® October 2019

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4 68% of disputes handled by the Ombudsman Program (Consumer/REALTOR® disputes) get resolved to the complainant’s satisfaction 4 Ethics Citation Program for Code of Ethics complaints 4 Online Professional Standards Toolkit > www.IllinoisRealtors.org/Ethics

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Legal Hotline – a member service for 25+ years

4 For any member, the hotline offers guidance on the Real Estate License Act, ethics, broker or agency agreements, other real estate legal questions 4 For managing brokers, it’s also a resource for questions on agreements to sell, purchase or lease real estate, plus supervision responsibilities 4 Real Estate License Act rewrite at www.Illinois Realtors.org/RELA_Rewrite (member login required)

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A live person answering the phone When you need help in your real estate business, we’re here for you. Our Welcome Center staff will get you routed quickly to a staff expert or appropriate resource.

> 9 a.m. to 5 p.m. weekdays > 800-752-3274 or 217-529-2600 > info@IllinoisRealtors.org

> 800-952-0578 • afierstos@IllinoisRealtors.org > www.IllinoisRealtors.org/Legal

Check out your state association member benefits > www.IllinoisRealtors.org/MemberBenefits

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Clear vision a must for association of the future

Advocacy, economic development focus in critical planning year for Illinois REALTORS®

By Jon Broadbooks, Vice President, Communications

Ed Neaves has always been a builder.

Sometimes, that’s in the literal sense. After all, he's built hundreds of homes over the years.

Other times, it has been building a business as a restaurateur, radio station owner or as a managing broker at real estate firms in Bloomington.

Neaves became president of Illinois REALTORS® in September, and his plans for 2020 call for a clear focus on building member value and positioning the 50,000-member trade association to succeed in the future.

It’s no small task, given the dynamics of the real estate industry.

“Real estate is an industry that is rapidly changing – I mean it changes week by week by week,” Neaves said. “It’s accelerating at such a fast pace that you have to be on top of what’s happening because it is changing so rapidly.”

Fast change requires 20/20 vision for 2020, he says. The association’s efforts should directly link members to the value Illinois REALTORS® brings through advocacy, education and other services ranging from legal guidance to professional standards.

“It’s a critical time. Everybody wants to know what’s in it for them,” Neaves said.

In 2020, Neaves will oversee a strategic planning process for the next three years and beyond for Illinois REALTORS®. This means members will review the current plan, measure it against how the marketplace is evolving and then draft a new blueprint for the organization.

The good news?

“Nobody does it better than this organization,” Neaves said. “Once

2020 Illinois REALTORS® President Ed Neaves credits his wife, Amanda, with getting him interested in REALTOR® leadership. They are pictured here with their son, Edwin, 2.

PHOTO BY KNIGHT LIGHT PHOTOGRAPHY

you see inside everything the Illinois REALTORS® does as an organization … what they do day in and day out to provide service to their members is staggering. We must continue to get this message out through our ambassadors and continue to reinforce this value.”

Restaurant business, military shaped professional life

Neaves grew up in Rantoul, the son of Bob and Peggy Neaves. His father flew B-17s in Italy in World War II, and after he left the military he settled the family in central Illinois.

Neaves attended Rantoul Township High School, where he was president of the art and chess clubs, the National Honor Society chapter and played the lead in the junior class play. He also ran cross country and was a standout wrestler.

To make money, Neaves got a parttime job at the Redwood Inn in Rantoul, starting as a potato peeler then working his way up to dishwasher and running the buffet carving station.

As his 1969 high school graduation neared, Neaves decided he wanted to attend one of the nation’s armed forces service academies. A college visit to the Air Force Academy’s Colorado Springs campus made a lasting impact.

“I fell in love with the place and thought ‘what the heck,’ so I applied,” he said.

Several months later, a colonel showed up on his doorstep announcing he had been accepted to the Air Force Academy. Offers from West Point, Annapolis and the Merchant Marine Academy soon followed, but Neaves had his heart set on the Air Force.

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Birdwatching hobby leads to falconry

It was at the Air Force Academy where his love for the military and a longtime passion as a birdwatcher came together.

Neaves’ parents would take him for weekend rides into the countryside, and for cheap entertainment the family would look for birds and pick blackberries.

Young Ed was fascinated by birds.

“They gave me every bird book known to man,” Neaves said. “To this day when I hear a birdsong, I can pretty much tell you (what it is) if it is a North American bird.”

Years later, as he walked stiffly at attention down an Air Force Academy hallway, Neaves saw a bulletin board notice seeking cadet applicants for the falconry program. The falcon is the official mascot of the Air Force Academy, and the school maintains a large complement of the birds.

Neaves immediately applied and was one of four freshman falconers selected to take care of the academy’s raptors.

“It was a PR job,” Neaves recalled.

“Whenever we were on leave or home for anything, we took a bird with us. We appeared at high schools, on TV shows and radio shows.”

When he graduated in 1973. Neaves was assigned to the 437th Military Airlift Wing based in Charleston, S.C., where he flew on C-141 and C-5A cargo transports on missions throughout South America.

At the end of his tour in 1977, the Vietnam War had wound down and the Air Force was looking to reduce enlistments. Neaves took the opportunity to return to Central Illinois where his family still lived.

Restaurant business launches real estate career

Back in Bloomington, Neaves enrolled in graduate school at Illinois State University. He later earned a master’s degree in business administration.

To support himself, he worked as a bartender at a restaurant called Pub I, 22

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A boyhood hobby of birdwatching translated into a job as a cadet falconer at the U.S. Air Force Academy for Ed Neaves. On holiday breaks, he often cared for some of the the academy's mascots.

PHOTO COURTESY ED NEAVES

then was promoted to manage a sister operation, Pub II, in Normal.

The experience took his career in a number of new directions, including his first venture into real estate.

“A customer at Pub II owned a real estate company, and through that conversation that’s how I got into real estate,” Neaves said. “For a while I sold a lot of real estate out of that bar, just talking to people. ... Since I was the manager I could take off and show them property anytime I wanted.”

Neaves bought and sold investment properties. Among them was a lounge in Bloomington which he named Falcon Eddie’s, a nod to his past at the Air Force Academy. Among the clientele was a local radio station owner who shared the problems he was having running the business.

“I told him, ‘I’m a sales manager in real estate, I can run a radio station,’” Neaves recalled. “One night he said ‘OK’, come on down. I’ll never forget walking into that station and (meeting) all the people that worked there and him introducing “Falcon Eddie” as their new manager.”

Neaves’ work at WIHN FM 96 led to an opportunity with partners to buy another station in Champaign, WHZT FM 105.

The station played elevator

music, a format Neaves knew had to immediately change. He commissioned a study to find out what niche wasn’t filled in the market.

“I’ve always been kind of a data nut,” he said.

The station's format changed to hard rock. It was shifted to a digital format and operated out of a space about the size of a closet.

The changes vaulted WHZT to the top spot in the Champaign market.

“I got the most fun out of writing commercials and putting commercials on the air and going to the event and seeing success for the client,” Neaves said of the experience.

Real estate becomes primary focus From the 1990s on, Neaves turned his focus to real estate after he and his partners sold the radio stations.

He helped merge Snyder Real Estate and Armstrong Realty to form Prudential Snyder Armstrong Real Estate, and in the process built the business from a $40 million a year operation to one which topped $450 million annually.

“From a management perspective this was one of my proudest accomplishments, successfully merging two separate brokerages, both fiercely proud of their heritage, with two

Ed Neaves meets with U.S. Rep. Adam Kinzinger in Washington, D.C., during visits by Illinois REALTORS® to Capitol Hill to lobby on industry issues and private property rights. "Advocacy is the number one program we have," he says.

completely different cultures, keeping every agent intact and on board during the first five years of the merger,” he said.

The company later changed corporate ownership and now operates as Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. Currently, Neaves manages 84 brokers.

Neaves and several partners formed Stelle Homes in Bloomington in 2002.

The business built more than 500 homes throughout central Illinois.

The projects ranged from an affordable housing-oriented subdivision to high-end mansions.

He’s still building, now as a partner in Expert Builders of Central Illinois, which constructs eight to 12 houses annually.

Professional commitment growing part of role

In 2010, Neaves started to get involved with the Bloomington-Normal Association of REALTORS® and ultimately Illinois REALTORS®.

He credits this to the woman who would ultimately become his wife, Amanda Wycoff Neaves. They married in 2015, and have a two-year-old son, Edwin.

“She is the one that convinced me to run for the local board, to resurrect the local RPAC Committee, to re-engage at the highest energy level,” he said.

And, she encouraged him to make the volunteer work fun, even if it meant taking part in a local association talent show. “Without her, none of this would’ve happened,” Neaves said.

Because Neaves knew newly elected U.S. Rep. Adam Kinzinger, he was quickly drafted to become the congressman’s Federal Political Coordinator (FPC). It was one of his first volunteer leadership roles for a REALTOR® organization.

“I was flown to Washington, D.C., to start training with the other new FPCs, Neaves recalls. “Immediately, I was hooked on advocacy.”

Both Ed and Amanda Neaves have served as president of the BloomingtonNormal association, and Amanda is a top producer in the market.

Since he became active with the state association a decade ago, Neaves has worked on or led a multitude of committees, ranging from chairing the Major Investor Working Group, REALTORS® Political Involvement Committee and the Federal Political Coordinators.

At the national level, Neaves represented Illinois REALTORS® with Illinois REALTORS® President Mike Drews on the REALTOR® Party Member Involvement Committee. The pair was honored for their work in 2015 with a

NAR Chairman’s Award, an honor given for special leadership recognition.

Back in Illinois, Neaves received the Illinois REALTOR® Political Involvement Award for his longstanding commitment to promoting industry causes to local, state and federal policymakers.

It should be no surprise that advocacy ranks high on Neaves' list of important things Illinois REALTORS® provides.

“Advocacy is our number one program that we have,” Neaves said.

“Without advocacy, we have nothing.

Illinois does it (advocacy) better than anybody in the United States. We are a model for what we have set up.”

Marketing Illinois as a place to do business will also be an emphasis for the year ahead. Neaves has traveled to Cannes, France, for the annual MIPIM real estate conference, and recently returned from Japan as part of a state of Illinois effort to develop relationships and investment.

“It’s critical to bring jobs to the state. Jobs bring people that buy houses,” he says.

Commitment to building ongoing for Neaves

Neaves said he’s aware of how fast the industry is changing.

“We have to be knowledgeable about what is happening and ask how this thing is going to play out, what analytics can we put in place to be ready for when change happens,” Neaves said.

No matter what happens to the real estate business model, Neaves said he’s even more convinced real estate agents will always be at the heart of the deal.

“The agent of the future will be needed in every transaction as long as he or she keeps up to date on their education and knowledge of the market,” he said.

It’s a belief that shapes what he says is the best part of his job – giving new owners keys to their home.

“The look in their eyes, their happiness, their pride, and their gratitude – it’s hard to beat that,” Neaves said.

ILLINOIS REALTOR® October 2019

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Weichert

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These REALTORS® won’t retire from who they R'

By Bill Kozar, Content Marketing Specialist

Betty Treat

broker for Berkshire Hathaway HomeServices Elite Properties in Edwardsville

A

majority of Americans expect to retire at least at age 66, according to polls, but many Illinois REALTORS® have passed that milestone and aren’t looking back.

In fact, there are more than 6,700 REALTORS® in the state who are 66 or older, according to Illinois REALTORS® records. They are among the 429,000 REALTORS® nationwide who are 60 or older and still in the business.

“Yes, I will retire someday,” says Betty Treat, 83, a broker for Berkshire Hathaway HomeServices Elite Properties in Edwardsville. “But I like what I do. I’m happy. My cognitive skills are good, and l like providing good service to my customers. Not only

do I help them sell their homes, but sometimes they will call me and ask for recommendations when they have plumbing problems or need to replace a door.”

“I enjoy challenges,” says Lorraine Epperson, 92, the managing broker/owner of Century 21 PurdumEpperson in Macomb. “And as long as I like what I’m doing, I won’t consider retirement. If I wasn’t working, I would be busy volunteering. I keep working because it is stimulating, enjoyable and challenging.”

This attitude represents what the National Association of REALTORS® (NAR) is emphasizing with its “That’s Who We R” campaign which highlights the service more than 1.3 million members provide.

ILLINOIS REALTOR® October 2019

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David McClintock

CEO Three Rivers Association of REALTORS®

Local CEOs see trends

Why are so many REALTORS® still in the business well past retirement age?

“In this business, nobody tells you that you have to retire,” says Three Rivers Association of REALTORS® CEO David McClintock. “But your mind has to be active to compete with younger people.”

Mainstreet Association of REALTORS® CEO John Gormley says real estate can provide a career for people who don’t want to retire in their 60s.

“Real estate can provide a nice supplemental income for people who are at this stage of their lives,” says Gormley. “In the last couple of years, we’ve seen an influx of new members who are already nearing retirement age. Many are interested in property management or real estate investment as a financial supplement to Social Security and their 401Ks.” Gormley and McClintock say veteran REALTORS® often have incentives for remaining active in the business as peers in other careers retire.

For example, independent contractors may supplement their retirement savings because they either do not have pensions or the pensions are too small. Business owners may continue to make sales because their children refer clients to them.

Veteran brokers and property managers may continue to work simply because they enjoy the business.

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John Gormley

Loretta Alonzo-Deubel

CEO Mainstreet Association of REALTORS®

broker for Century 21 Affiliated in Westchester

“I’m 70 and a lot of my peers are still around,” says McClintock, who worked in sales and brokerage management for 33 years before becoming Three Rivers’ CEO 14 years ago. “If you’re a REALTOR® and you’ve been in the business for many years, you may have a lot of customers that you don’t want to walk away from. Others who are business owners may sell their business to get rid of the management responsibility and – if they’re in a franchise – not have to worry about how their success is being measured.”

However, McClintock says he doesn’t know of many REALTORS® who start the profession late in their working lives and continue to thrive in their 70s or beyond.

“Our profession is constantly changing,” says Gormley. “Laws, practices and consumer expectations continually evolve. Keeping up with these changes can provide mental stimulation.

And then there’s the camaraderie that many REALTORS® enjoy by being involved in their association. We have an active seniors committee that does a lot of cool things in the community.”

REALTORS® Distinguished Service Award. In 2012, she became the Illinois REALTORS® president, and in 2015 she was its REALTOR® of the Year.

“I love what I do,” says AlonzoDeubel. “I still get satisfaction helping clients find their dream homes or helping sellers go to their next level, whether it be larger homes or downsizing or even going into adult living homes. I’ve been in the real estate business so long that I am used to doing something every day. When I sold my real estate office in 2016, it gave me the opportunity to set my schedule so I can enjoy days off when I want to. I’ve worked since I was 16 and it’s become a habit to stay active.”

Alonzo-Deubel began her real estate career in 1976 when she started a job with an attorney who specialized in real estate closings. By 1983, she opened a Century 21 office with a partner.

She was responsible for training and management. In 1996, she opened her own office, CENTURY 21 Alonzo & Associates. It merged with Century 21 Affiliated in December 2014.

Alonzo-Deubel says she would probably retire if she could not keep up with her daily schedule. Even then, she says she would want to volunteer and travel more.

Determining her own destiny Loretta Alonzo-Deubel, 72, is a broker for Century 21 Affiliated in Westchester but for many years ran her own business.

She was a local REALTOR® association president twice and a local REALTOR® of the Year six different times. In 2006, she received the Illinois

More work to do

Ask REALTORS® working past retirement thresholds why they stay, and you get varied answers.

ˮ More and

more, age is not the primary factor in considering retirement.ˮ – Betty Treat

Take Frank Williams, 81, who has run F. J. Williams Realty in Evergreen Park for 48 years. He got into the business with the belief that if others could make a living in real estate, he could, too.

But he also made it a core mission to help minority homeowners gain a piece of the American Dream beginning in a time when they often weren’t welcome in many Chicago neighborhoods. He also encouraged African American REALTORS® to become more involved with local REALTOR® organizations as well as the Dearborn Board of REALTISTS®.

“I kind of see real estate as my ministry,” he says. “I’m not going to retire (soon). There’s too much work to be done.”

Part of the foundation for Epperson’s success as a real estate broker, she says, was the experience she gained as a high school guidance counselor at Macomb High School. Also, she honed key leadership skills through her involvement with the Lamoine Valley Board of REALTORS® which is now part of the Peoria Area Association of REALTORS®. Today she still draws on those experiences as a business owner and community leader.

“I feel I’m able to conduct business much the same way I did when I was younger, but I’ve certainly witnessed huge differences in available technology,” she says. “I still enjoy listing and selling, working with former clients and meeting new people. But I consider myself a

Frank Williams

Lorraine Epperson

F. J. Williams Realty in Evergreen Park

managing broker/owner of Century 21 Purdum-Epperson in Macomb

service person, not a salesperson.”

Epperson started her second career by working nights and weekends. After 10 years, she retired from education and purchased part of the R.B. Purdum Real Estate Agency. Within months, the managing broker sold Epperson another portion of the agency and she quickly became the new managing broker.

Five years later, Epperson and her husband purchased a CENTURY 21 franchise and changed the name of the business to Century 21 Purdum-Epperson, Inc. The business kept growing, and in 1998, they moved it to a larger building on the Macomb downtown square.

Word of mouth has played an important role in the agency’s success over the last 29 years, she says.

“In a community the size of Macomb, our reputation is huge,” she says.

“Honesty and good service are major factors in our production, and referrals from past clients are considerable.”

She continues to contribute to the community through involvement with the Wesley Village Board, the Macomb Area Economic Development Board, the Western Illinois Foundation Board and the local Presbyterian church.

experiences in their lives. She’s been at it for 24 years.

“Finding ways to assist buyers and sellers is challenging because the situations and the people are unique. But what’s important to me is really being able to help people. It’s not about the money,” she says. “It’s about helping people reach their goals.”

Treat, whose daughter is REALTOR® Association of Southwestern Illinois CEO Deb Frazier, says she is energized by the relationships she builds with her customers. Many of her sales today come from referrals.

Though she says her production is lower than during the peak years of her second career, she has been able to use her income to help people and organizations that needed financial support, including the United Methodist Church and local charities.

“As an older agent, I feel I bring the same enthusiasm and drive for real estate, but it seems to take me more time to complete digital tasks,” she says.

“Every agent at every age brings different skills to the marketplace and tries to utilize those skills to their advantage.”

She says some of her customers do not retire to a life of leisure. They work to keep themselves active, too.

“More and more, age is not the primary factor in considering retirement,” says Treat. “Some people golf when they retire. Some people shop. But every person has to make their own decision.”

Energized by helping others After a lengthy career in education, Treat discovered new joy by helping clients through home buying and selling, noting that the process is usually one of the most stressful

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AT THE CAPITOL Challenging 2019 spring session brings success on rent control, license law rewrite and more

Julie Sullivan

Senior Director of Legislative & Political Affairs

With a new administration, more than 50 freshmen legislators, some tough policy issues and two days of overtime, this year’s spring legislative session was certainly a challenging one.

The final days brought a flurry of activity on significant legislation including the passage of a state budget, a massive capital bill for statewide projects, legalization of recreational cannabis and a huge expansion of gaming.

While more than 6,000 bills were introduced in the 2019 spring session only 10 percent passed both chambers. Illinois REALTORS® statehouse team actively tracked more than 160 bills of particular interest. Here are key legislative issues:

Rent control legislation does not pass Status: Inactive

Find the new Legislative Scorecard from the spring session at www.

IllinoisRealtors.org/ Advocacy

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The issue of rent control has been the subject of intense discussion, research, lobbying, grassroots and public outreach.

This year’s efforts began with our Public Policy Meetings in January and we continued to work diligently throughout the spring session.

THANK YOU TO THE OVER 10,000 ILLINOIS REALTORS® who responded to our Call-For-Action on this issue and the outreach in Springfield and in the district. In 2019 there were several bills strongly OPPPOSED by Illinois REALTORS® which sought to repeal the Rent Control Preemption Act (a ban on enacting local rent control ordinances).

The intent of the legislation was to allow local governments, especially Chicago, to enact rent control by ordinance. Two of the bills- House Bill 255 (Guzzardi) and Senate Bill 2063

(Martinez) repealed the existing statute.

House Bill 2192 (Flowers) and House Bill 3207 (Ortiz), not only would have repealed the statute but CREATED a new Rent Control Act to establish rent control boards in EVERY Illinois county, mandating rent control regulations statewide.

HB 2192 also contained language regarding tax credits, procedures for terminating a tenancy or lease of one year or more and relocation assistance among other limitations and provisions.

After three years of anticipation and intense lobbying by both proponents and opponents of rent control and two separate “subject matter hearings,” House Bill 255 (Guzzardi) was called for a vote in the Commercial Law Subcommittee of the House Judiciary Civil Law Committee in late March. After another debate of the bill, it FAILED in the subcommittee on a roll call of 2-4-1.

We anticipate that this will continue to be a top priority issue in upcoming sessions.

Tripling of real estate transfer tax for nonresidential real estate stopped Status: Inactive

As capital funding packages were being put together in the waning hours of spring session, a 716-page amendment was proposed to Senate Bill 690 that included a proposed tripling of the state’s real estate transfer tax on nonresidential real estate.

The state’s real estate transfer tax is in addition to many home rule municipal real estate transfer taxes that are in place.

The current rate is $1 per $1,000 and

House Amendment #2 to SB 690 would have increased the rate for nonresidential real estate to $3 per $1,000 of value.

This required a quick response from the lobbying team in voicing our strong OPPOSITION and the tremendous support from House Republican Leader Jim Durkin and his caucus to ensure this language was taken OUT of the bill in its final form.

Real estate license law rewrite approved Status: Passed

With near unanimous approval, Senate Bill 1872 (Anderson-Jones III/Rita) passed this year. SB 1872 represents the agreement between Illinois REALTORS® and the Illinois Department of Financial and Professional Regulation on rewriting and renewing the Real Estate License Act. For an in-depth explanation of the rewrite changes, see Legal Update on page 8. Signed into law (P.A. 101-357).

Property tax relief measures Status: Passed

Two property tax relief-related bills were approved and signed into law.

Senate Bill 39 (P.A. 101-77) creates the Illinois Property Tax Relief Fund within the state treasury. Moneys in this new fund are intended to pay rebates to residential property taxpayers. The legislation provides for the payment of rebates to be made beginning in the state’s 2021 fiscal year to those property taxpayers who receive homestead exemptions.

Senate Bill 1932 (P.A. 101-181) creates a new Property Tax Relief Task Force to identify the causes of increasingly burdensome property taxes in Illinois;

review best practices in public policy strategies that create short-term and longterm property tax relief for homeowners and make recommendations to assist in the development of both short-term and long-term administrative, electoral and legislative changes needed for property tax relief. A final report is due Dec. 31, 2019.

Cook County assessor reporting requirements stalls Status: Inactive

Various stakeholders, including Illinois REALTORS®, worked throughout the spring session on Senate Bill 1379, which was an initiative of the Cook County Assessor, to establish ANNUAL reporting requirements for tax purposes on most income-producing properties in Cook County. While the bill sought to require these procedures in Cook County, other counties would have had the ability to opt-in. The bill was OPPOSED by a large coalition of business groups, including Illinois REALTORS®. While language was crafted to address many of the concerns in the bill, no final agreement was reached, and the bill was not called for a vote in the House this spring.

The assessor has indicated that it is his intent to revive the bill, possibly as early as the fall session.

Local government consolidation measures approved Status: Passed

Illinois REALTORS® has consistently supported legislative efforts to eliminate or consolidate the staggering number of property tax-funded units of government in Illinois and three bills

were approved in 2019.

House Bill 348 (McSweeney/Link) adds provisions to Illinois law dealing with the dissolution of a single township in McHenry County by a referendum vote and also establishes the procedure for abolishing a township road district in Lake or McHenry County if the roads of the district are less than 15 centerline miles in length. Signed into law (P.A. 101-230).

House Bill 3369 (Weber/Wilcox) provides that the village of Lindenhurst Board of Trustees may, by ordinance, exercise the powers of the sanitary district, including the district’s authority to levy and collect taxes. Signed into law (P.A. 101-111).

Senate Bill 90 (McConchie/Didech) provides for the dissolution of certain drainage districts wholly or partially contained within the Lake Michigan Watershed, the Chicago/Calumet Watershed, the Des Plaines River Watershed or Fox River Watershed. The county board or city council is directed, within 60 days after the dissolution, to reduce or eliminate the assessment.

Signed into law (P.A. 101-298).

Local Government Residential Inspection Limitation Act Status: Inactive

House Bill 2206, introduced by REALTOR® Rep. Sam Yingling, was STRONGLY SUPPORTED by Illinois REALTORS®. HB 2206 would codify what the U.S. Supreme Court has said is the fundamental right of owners and occupants of housing under the Fourth Amendment to the U.S. Constitution; that a unit of local government may ILLINOIS REALTOR® October 2019

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not conduct a physical inspection of residential property without the voluntary consent of the owner or occupant of the property, a lawful warrant or a court order.

Despite the measure being UNANIMOUSLY approved in a House committee, it stalled in the House. The fight for this important initiative will continue in future sessions.

Ban on real estate broker/agent serving as a township assessor Status: Inactive

Senate Amendment #1 to Senate Bill 683 (Morrison, J.) included language that would prohibit a person from serving as a township or multi-township assessor “if that person OR a member of that person’s immediate family is engaged in business as a real estate agent or broker in the territory over which the township or multi-township assessor has jurisdiction”.

The language defines “immediate family” as the person’s parent, child, spouse or sibling. This proposal was STRONGLY OPPOSED by Illinois

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REALTORS® and was also opposed by the Assessment Officials Association.

The bill was ultimately not called for a vote by the sponsor.

Rental housing support fee increase Status: Inactive Senate Bill 2092 (Aquino), which would have increased the recording fee surcharge for each real estate-related document from $9 to $18, was defeated in the Senate Local Government Committee on a roll call vote of 3-3-3 (5 affirmative votes needed for passage).

The proceeds of the existing and proposed increased surcharge are earmarked for the Rental Housing Support Program.

Affordable rental housing incentives – possible action in fall session Status: Inactive Senate Bill 2259 (Cullerton) and House Bill 2168 (Feigenholtz), two property tax incentive proposals modeled after the Cook County Class 9 Program, were

introduced and SUPPORTED by Illinois REALTORS®.

SB 2259 would provide statewide property tax incentives for newlyconstructed or rehabilitated multi-family residential rental properties if the owner commits to keep rents in at least 20 percent of the units at or below maximum rent levels and units are occupied by renters with household incomes at or below maximum income limits for 10 years.

HB 2168 provides for a statewide program reducing the equalized assessed value of newly-constructed or rehabilitated rental property.

This bill has the same 10-year commitment for the owner but provides that at least 15 percent of the multifamily units have rents at or below maximum rents and occupied by renters with household incomes at or below maximum income limits. A subcommittee of the Senate Executive Committee held a subject matter hearing in July 2019 where both measures were discussed, and action could occur in the fall session.

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COMMERCIAL CORNER Farmland prices not as robust, but still a strong investment

By Jon Broadbooks, Vice President, Communications

Illinois farms are an economic powerhouse, generating more than $19 billion in overall economic impact annually, according to the Illinois Department of Agriculture.

In all, the state has more than 72,000 farms accounting for 27 million acres.

Luke Worrell

Worrell Land Service, LLC

Luke Worrell with Worrell Land Services LLC in Jacksonville is president of the Illinois Farm and Land Chapter of the REALTORS® Land Institute. His firm buys, sells, appraises and manages farms throughout the state, and he discussed with Illinois REALTORS® the current state of agriculture real estate in Illinois.

Illinois REALTORS®: We’ve seen some real ups and downs in farm acreage prices over the past few years. How are farmland prices in 2019 shaping up?

Worrell: We peaked in 2013 and 2014. That’s when we saw some of the most historically high prices. Since that time, we’ve seen very moderate declines – nothing enormous.

I think over the last several years, when the year has wrapped up, we have seen maybe an even stance, in the best case, to a decline of two to five percent.

I think most people, when they see the door close on 2019, think we’ll see some very gradual softening on prices.

Illinois REALTORS®: Are tariffs having an impact on farmland prices?

Worrell: They (tariffs) certainly don’t help. I don’t know that they have been catastrophic. You know, it’s a small world we live in now. So, I like to describe it as there is a lot of “noise” out there, and most of it has not been favorable lately.

Land values directly correlate to commodity values. In our state, particularly, the price of corn and soybeans, have not been doing too well.

Obviously, that is going to have an effect. I don’t think it has an enormous effect. It probably doesn’t match the “noise” that’s out there.

We’re all hoping for a solution and a bit smoother sailing in the near future.

Illinois REALTORS®: In 2012 there were more than 75,000 farms in the state. Now there are just more than 72,500 farms. What’s accounting for that decrease?

Worrell: There are couple of factors.

The average age of a farmer – a landowner – is up there, and more so than in other industries. As farmers retire, there isn’t necessarily the next generation ready, willing and able to take their places.

Farming is a very expensive industry.

It’s incredibly hard for a younger person to just decide they are going to be a farmer.

You almost have to be set up through a family lineage. The smaller operators have a harder time handling the rough waters.

Illinois REALTORS®: Do the challenges for smaller farmers drive trends toward sales to larger farming operations?

Worrell: We’ve stacked as many as five lean years on top of one another.

Obviously, if you are a smaller operator, you might not have the bandwidth to

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The changing nature of American agriculture

handle a down year, let alone three or four in a row.

I think that has driven some land to larger operations which are better suited and structured to be in it for the long haul.

Illinois REALTORS®: It has been a rough year, weather-wise for farmers.

What are they telling you about how this year will play out?

Worrell: Nobody has a great feeling. People are very cautious when they try to project what we are going to have this year. I think we are at the point where people are probably a little nervous to see what the yields are when they come in.

I think everybody is excited to get this year over with, honestly, and keep their fingers crossed for 2020.

Illinois REALTORS®: Are we seeing more foreign investors buying farmland here?

Worrell: Illinois is not as strict as others states (on farmland ownership), so it does open the door for foreign investors. In my area we still have not seen a large influx of foreign buyers.

I will say that I have definitely heard more from foreign buyers in the last year or two, but I haven’t seen any deals actually come to fruition.

Learn more about farmland in an extended interview with Luke Worrell on the Illinois REALTORS® podcast. Download it at www.Podcast.IllinoisRealtors.org or wherever you get your podcasts.

Dean Cavey

managing partner for Verdant Partners LLC, a Champaign-based agribusiness firm.

Agriculture is a critically important industry for the U.S. and our home state of Illinois.

Illinois is perennially the second largest producer of corn and soybeans in the country. Agriculture is also critical to the rest of the world since the U.S. has historically been the leader in the export of agricultural products to feed a growing world population that is expected to reach nearly 10 billion people by 2050.

Historians typically refer to three agricultural revolutions since the beginning of recorded history.

The first revolution occurred around 10,000 BC with the transition from hunting and gathering to planting and sustaining.

The second revolution increased the productivity of farming through mechanization and improved transportation.

The third revolution started in the 1930’s with the introduction of hybrid seed corn as well as other practices which allowed for substantially greater output using the same or less land devoted to the production of crop agriculture.

The old saying “knee high by the fourth of July” was undoubtedly coined prior to the introduction of hybrid seed corn.

With this year being an exception, people in the Midwest are accustomed

to seeing knee high corn by Memorial Day, or before, with yields regularly exceeding 200 bushels per acre.

This dramatic improvement is due mainly to technology. In fact, it could be argued that a fourth agricultural revolution started about 25 years ago.

The introduction of biotechnologyderived traits in the mid-1990’s, combined with continued improvements in farming implements and access to sophisticated analytics, sometimes referred to as “big data,” have set off another agricultural revolution that greatly benefitted farmers and radically changed the productivity of American agriculture.

Much has been written about genetically-modified organisms or “GMO’s,” but the technology that gave rise to GMO’s has made farmers much more efficient, more environmentally responsible, and allowed for steady increases in yields and productivity while reducing the use of chemical crop protectants.

GMO technology is directed toward improved management of a variety of insects, diseases and weeds, all of which combine to reduce yields and/or crop quality.

Agriculture is naturally innovative, and those companies serving the industry are the source of constantly improving technology that will allow farmers around the world to produce more on less land.

Weather and politics can and do present challenges to farmers, but the long view suggests that with continued advancements in agricultural technology, including biotechnology, it will be possible to adequately feed nearly 10 billion people just 30 years from now.

REALTOR® Alex Ruggieri, CCIM, CIPS, CRE, SEC, is a contributing editor to Commercial Corner. He is a senior investment advisor with SVN-Ramshaw Real Estate in Champaign.

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Working for you in every corner of the state In addition to election activities and helping to spread the message on statewide legislative issues such as Rent Control, your local Governmental Affairs Directors (GADs) have been working hard with their local REALTORS® on a variety of issues. Here are some of the highlights so far this year: In Joliet, a proposal to expand the existing landlord licensure program to include rented single-family homes was blocked for the second time in two years.

REALTORS® worked to get impact fees reduced in Kendall County, Lakewood, Poplar Grove and Springfield.

“Crime-Free Housing” proposals with new regulations and fees on landlords were shelved in Bethalto and Danville.

And in Rantoul, the “crime-free” seminar attendance was changed from mandatory to voluntary.

Schaumburg blocked a proposal to impose caps on the number of units rented in condominium associations.

Peoria amended its rental registration ordinance to reduce requirements on rental property owners after significant input from REALTORS®.

Vacant property registration programs were enacted with significant input from REALTORS® in Tinley Park and Rockford. And in Lake Barrington, a proposed foreclosure registry ordinance was tabled.

After strong involvement from Peoria REALTORS® on a proposed parcel fee last November, the city of Peoria decided to include REALTORS® on a budget formation committee in the future.

A referendum proposal to increase the real estate transfer tax in Chicago was blocked from the April municipal

election ballot. (This is likely to come up again for the March 2020 Primary ballot.)

A new regulation regarding the replacement of lead service water lines in Elgin, which included property ownerfriendly options for financing and for alternatives, was adopted with REALTOR® input.

Resolutions opposing Rent Control were passed by the chambers of commerce in Champaign, Springfield, Decatur and Danville. This augments our state legislative efforts on this issue.

With data driven input from local REALTORS®, the village of Oak Park enacted a reasonable inclusionary housing ordinance (mandatory set-aside for affordable housing). The ordinance excludes developments of new condos and single-family homes (targeted only to new apartment buildings in one section of the village).

PACE bond financing was enacted in DuPage County. Pursuant to state legislation (which Illinois REALTORS® supported in 2017), this enables affordable financing for energy-related improvements in non-residential properties.

Country Club Hills, Hazel Crest, Matteson, Park Forest and Sauk Village are implementing administrative improvements in the point of sale

home inspection programs. Most of the improvements were suggested and advocated by local REALTORS®.

In Evanston, a proposal to require landlords to provide relocation assistance when rents are increased above a specific percent was shelved.

REALTORS® argued this is a type of Rent Control.

REALTORS® in Bloomington worked to ensure the due process provisions of the revised zoning code were as strong and transparent as possible.

A real estate transfer tax proposal was defeated in Bannockburn.

Mike Scobey

Senior Director of Local Advocacy & Global Programs ILLINOIS REALTOR® October 2019

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Buying trends in today’s tighter inventory market

A first-ever NAR analysis of lesbian, gay and bisexual buyers and sellers compares the homeownership patterns of different buyers, what kind of homes they want and where.

4% of all home buyers and sellers identify as lesbian, gay or bisexual

Home construction lags behind demand A recent Harvard

University report found that while household growth and the

homeownership rate are

Lesbian/Gay

28%

Most likely to have purchased a home in urban area/central city

inching higher, housing

11%

Least likely to have children in the household

Bisexual

58% Most likely to be first-time home buyers

22%

Most likely to have purchased home in a small town

Heterosexual

53%

Most likely to have purchased in suburbs/ subdivision

www.IllinoisRealtors.org

aren’t keeping pace with demand.

• Single-family housing starts have been below 1 million units for 11 consecutive years • Household growth increased to 1.2 million new households per year • Rising land prices and a shrinking construction labor pool = shortage of middle-market housing

13%

Most likely to have purchased a multigenerational home

Source: “2019 Profile of Lesbian, Gay and Bisexual Buyers and Sellers,” National Association of REALTORS®

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construction and supply

Source: “The State of the Nation’s Housing 2019,” Joint Center for Housing Studies of Harvard University

OUTREACH Illinois REALTORS® outreach at MREDpalooza I love working the Illinois REALTORS® booth at MREDpalooza.

The free, biannual convention brings thousands of REALTORS® together with vendors, resources and education. I get to reconnect with REALTOR® friends I know, meet hundreds more and answer questions about REALTOR® Advocacy and RPAC. In fact, we signed up more than 200 Illinois REALTORS® for REALTOR® Party Mobile Alerts (Calls for Action via text message), offered one-on-one time with our legal experts with the Legal Hotline Live and answered questions on continuing education, professional standards and professional development.

If you missed MREDpalooza, this article will give you a taste of the experience with Illinois REALTOR® booth takeaways on tangible member benefits, explanations of new laws and regulations and a path to stay involved to protect your industry and homeownership.

So, sit back, relax and imagine yourself shaking my hand as we meet at the Illinois REALTORS® booth…

Tangible Benefits: Outreach team and all Illinois REALTORS® staff enjoy making sure all REALTORS® know about the many tools, resources and benefits available to them through their REALTOR® membership.

We offer a free subscription to Inman Select, which is worth approximately $200 dollars per year, so forget about that pesky paywall!

All Illinois REALTOR® legal forms have been updated and are available free for download at www.IllinoisRealtors.org and, if you need the latest market trends and handy infographics to share with clients, those are available free to members at the website as well.

Policy Issues: As a local Governmental Affairs Director (GAD), I was available to answer policy and political questions at the local, state and federal levels.

The topic that generated the most questions was the Federal Marriage Penalty, a federal tax problem REALTORS® are trying to address through legislation. Current tax law limits state and local deductions to $10,000 per household. That means a single filer gets the same $10,000 deduction as a couple filing jointly. The limit to this deduction is especially felt in high property tax states like Illinois.

Vote, Act, Invest: At MREDpalooza, I made sure to ask you to pledge to Vote, Act, Invest.

Voting in all elections, including local, is an extremely important way to wield our influence as REALTORS®.

Taking action by responding to all Calls for Action and signing up for REALTOR® Party Mobile Alerts is an easy and effective way to help us win our legislative battles.

Finally, investing in the REALTORS® Political Action Committee (RPAC), either at the Fair Share ($20) or Major Investor ($1,000+) levels ensures we have the tools we need to elect REALTOR® champions at the local, state and national levels.

Were you at MREDpalooza and want to share your Illinois REALTORS® experience with colleagues? Did you miss the event and now wish you could recreate this experience in your local real estate office?

Don’t despair! The Illinois REALTORS® Outreach Team is ready to deliver these tools to your office meeting.

Just give us a call and we’ll happily deliver a mini MREDpalooza Illinois REALTORS® experience.

VOTE

ACT

INVEST

Text REALTORS to 30644 and receive REALTOR® Party Mobile Alerts.

Message and data rates may apply.

Gideon Blustein

Member Outreach Manager and Local Governmental Affairs Director ILLINOIS REALTOR® October 2019

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ETHICS Stop, think before posting

Don’t violate ethics by calling out colleagues on social media In the last few months I have seen an increase in ethics complaints citing Article 15 of the Code of Ethics.

Members are being disciplined under the Code for all manner of meanspirited, hateful and sometimes even defamatory statements that they publish regarding other members of their own profession.

I am writing this article to encourage everyone to try and slow down their reaction times and responses. Once something gets published, it is in the cloud or on a server somewhere, and it is very hard, if not impossible, to erase completely.

Before responding to a question regarding another real estate professional, choose your words carefully. Also, think twice before posting comments on social media about other members of the real estate profession. Consider how members of the public and your real estate peers will interpret your comments.

Article 15 states: “REALTORS® shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses or their business practices.”

• Under the Code of Ethics (Article 15, Standard of Practice 15-2): “The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish false or misleading

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statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means.”

• Article 15, Standard of Practice 15-3 states: “The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses and their business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the REALTOR® controls once the REALTOR® knows the statement is false or misleading.”

Let’s remember what our mothers always told us, “if you don’t have something nice to say, don’t say anything at all.”

Becky Carraher

Director of Ethics and Professional Standards

REALTOR® COMMUNITY Follow us:

Leadership Development class tackles spokesperson training

The 12 REALTORS® in this year’s Illinois REALTORS® Leadership Development program got to hone their media and association spokesperson skills during a training module in Springfield in June. During the half-day session, they learned how REALTOR® associations might work with local news media and practiced mock interviews in front of the camera.

Real estate instructors head back to class

Elaine Rhodes (center) spoke about her experiences as a managing broker as Gibby Kirby (left) and Debbie Pawlowicz listened.

Digital Media Specialist Scott Moomaw helps Luigui Corral (right) attach a microphone to his lapel before starting a mock interview.

More than 60 real estate trainers attended Instructor Advancement Training at the Illinois REALTORS® headquarters in Springfield in June. The one-day class included training on how to reach adult learners, sexual harassment prevention and local real estate practices.

MREDpalooza: A carnival of learning

Midwest Real Estate Data (MRED) and Illinois REALTORS® co-hosted a technology exhibition with more than 40 vendor and information booths and breakout sessions at the Donald E. Stephens Convention Center in Rosemont in June. Illinois REALTORS® Legal Hotline, Ethics and Education specialists were on site to answer questions on a variety of topics.

MRED President and CEO Rebecca Jensen (center) stopped by the expo to visit with Anneliese Fierstos (left) and Betsy Urbance (right).

Matricia Jackson (left) and Nina Nicole Harrold (right) conferred with Gideon Blustein (center).

Chicago MLS summit covers service and governance Illinois REALTORS gathered for an MLS forum in August to learn about data standardization, consolidation and other trends and issues affecting the industry. ®

Clint Skutchan with T3 Sixty discussed the future of the Multiple Listing Service.

Young Brockhouse (left) and Christi Walden (right) answered questions about continuing and prelicense education.

Illinois Ombudsmen Meet Volunteers gathered in Lombard for their annual idea-sharing and best practices session in June.

Rene Galicia, NAR director of MLS engagement, spoke about consolidation.

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