Page 1



Spring 2012

A publication of the Kentucky Association of REALTORS 速

Education in real estate: the key to professionalism

Why fair housing still matters The new brokerage firm


Volume 5, Number 1, SPRING 2012

IN THIS ISSUE Unemployment Bridge Program

A publication of the Kentucky Association of REALTORS® President Ann McDonald Lexington-Bluegrass Association President-Elect John T. May Jr., SRA Greater Louisville Association Treasurer Norman Jones, GRI Eastern Kentucky Association Treasurer-Elect Larry R. Gillette, GRI Hopkinsville Christian & Todd County Association


Education in real estate: the key to professionalism


Why fair housing still matters in 2012


The new brokerage firm— supervision, office policy and attention to detail


Henderson—life on the southern bank of the Ohio 26

Executive Vice President Susan W. Helm, RCE Communications/Education Director Hunt Cooper


Address letters and inquiries to:

President’s Message


Tools You Can Use


Legal Update


Kentucky REALTOR® 161 Prosperous Place, Suite 100 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 email: KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers. Kentucky REALTOR® (USPS 024-933) is published quarterly (Fall, Winter, Spring, Summer) by the Kentucky Association of REALTORS®, 161 Prosperous Place, Lexington, KY 40509. Periodicals postage paid at Lexington, KY. POSTMASTER: Send address changes to Kentucky REALTOR®, 161 Prosperous Place, Suite 100, Lexington, KY 40509. All articles represent the opinions of the authors and do not necessarily represent the opinions of Kentucky REALTOR® or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting matters by KAR or Kentucky REALTOR® and its authors. Reproduction prohibited without permission. Copyright © 2012. Kentucky Association of REALTORS®, Inc. All rights reserved.

Legislative Update


Code of Ethics




Local Association News


By the Numbers


Housing Stats


Community Profile


A Day in the Life of...


From the Helm


KAR News 2012 KAR Leadership

KAR award nominations

Ann McDonald, President

REALTOR® of the Year Award Deadline: Fri, June 1, 2012

John T. May Jr., President-Elect

Distinguished Service Award Deadline: Fri, June 8, 2012

Norman Jones, Treasurer

Nat Sanders Educator Award Deadline: Wed, August 15, 2012

Larry R. Gillette, Treasurer-Elect

REALTOR® Community Service Award Deadline: Wed, August 15, 2012

Tony Clark, Immediate Past President

Board of Directors Sandy Newell, Region 1 Director Donald G. Sims, Region 2 Director Lamont Breland, Region 3 Director Gale Fulton, Region 4 Director John A. Hodge, Region 5 Director Nelson B. Weaver, Region 6 Director

If you want to nominate someone (even yourself) for these awards or just want to learn more, visit www. > Members > Awards.

REALTOR® of the Year Robert Damron, Pikeville

Distinguished Service Award John Chandler, London

Michael Becker

Nat Sanders Educator Award

Pam Featherstone

Jonah Mitchell Lexington

Barbara Flannery Rosemary L. Nobles R. “Rip” Phillips Ashley Trautner Rebecca J. Trout Linda J. Wiley Earleene Woods

Community Service Awards Northern Kentucky Association (Large Board) REALTOR® Association of SKY (Medium Board) Murray Calloway County Board (Small Board)

KAR Blog Visit to read the latest real estate headlines from local and national sources. Then, enter your email to receive daily updates automatically (please make sure you click on the confirmation email that is sent to you after entering your email); or, you can subscribe directly to the RSS feed.


Kentucky receives 58.8 million from foreclosure settlement Kentucky will get about $58.8 million as part of a $26 billion national foreclosure settlement, state attorney general Jack Conway announced earlier this year. The settlement, with five of the nation’s largest banks, will provide relief to consumers who were foreclosed upon, principal write-downs and refinancing to homeowners who hold mortgages that exceed the current value of their homes, and payments to states for ongoing consumer protection programs, according to a news release. To learn more about the settlement and the breakdown of funds, visit > Legal Affairs > Mortgage Settlement.

MVP program benefits members NAR created the new MVP Program to encourage members to take actions and participate in the association. Members who take the most active role are rewarded with free or low cost tools to help their business. This increases NAR’s engagement with members, while at the same time reminds them of the association’s valuable offerings, programs and services. Every two weeks a new MVP offer will be posted. All members have to do is complete the specified action within the two-week timeframe. After you complete the action, you’ll receive instructions and a code via e-mail to redeem your reward. That’s it. It doesn’t get simpler than that. Visit for more details.

President’s Message

Kentucky needs your help for disaster relief

Ann McDonald 2012 KAR President

Over three months have come and gone of my term—and I successfully made it through the Legislative and Business meeting in February. What an eye opener for me. I had no idea what a job our Government Affairs Director Anetha Sanford (as well as all other staff members) does for us. She is wonderful and busy with all that is going on in Frankfort during the 2012 legislative session. So the next time you see her, thank her for looking out for our interest so well (or better yet, send her an email). I must take some time to brief you on the recent storms that tore through the state that have made hundreds, if not thousands, of Kentuckians homeless, and what KAR is doing to help. We partnered with the National Association of REALTORS® Relief Foundation (RRF) to fund and administer a housing assistance program to people who were affected by the storms. The RRF jump-started the donation relief effort with a $50,000 commitment, with KAR contributing an additional $10,000. But we need everyone in the REALTOR® family to pitch in. With additional funds from REALTORS® like you, we can help even more families get through these tough times as the number of people affected by this disaster is staggering. As time passes and the media attention fades, people are still faced with the aftermaths of the disaster. Please consider making an online, tax-deductible contribution to the REALTORS® Relief Foundation today by visiting or by sending a check payable to the REALTORS® Relief Foundation, c/o NAR, 430 N. Michigan Avenue, Chicago, IL 60611. The goal of the program is to help the many homeowners and renters who have lost everything due to the storms’ destruction. These people will be obligated to make mortgage payments on homes that no longer exist or will not be habitable again for many months, while at the same time paying for temporary housing. Under the program, assistance will be available to those affected in two forms: 1) Monthly mortgage expenses for the primary residence that was damaged by the storms or; 2) Rental cost of temporary shelter due to displacement from the primary residence resulting from the storms. Relief assistance is limited to a maximum of $1,000. All grants are contingent upon the availability of funds (that’s why we need your help), and will be awarded on a first-come, first-served basis. The deadline to submit an application for assistance is May 31, 2012. If you have questions about the program, please contact KAR at 800.264.2185. Materials and a complete explanation of the program can be found at On another note, as I sit here writing, I am reminded of what our 2012 NAR president has to say about our nation’s real estate and his pledge to the members. I am not in any way trying to compare myself to Moe Veissi, but I, too, pledge to our KAR members that I will represent you to the best of my ability, always remembering that the REALTOR® is the heart of the deal. Like Moe, I think real estate in 2012 will be better for all of us both in Kentucky and across the country. I also want to take this time to thank you for allowing me to represent you and serve as your 2012 KAR president and, finally, to remind you in order to be at the table and not on the menu, you MUST do your fair share by giving to RPAC in 2012. Thanks again for allowing me to serve,

Ann D. McDonald 2012 KAR President


Tools You Can Use Marketing Minute Gatsby: your go-to guy (or girl) A new app called Gatsby, acting as a virtual concierge, tracks your location and interests; and, if it finds someone where you are with a shared interest, it connects you through the app, where you can chat with your new “friend.” Using Foursquare, you would check in to a location. The app would locate anyone nearby who shares your interests and sends a text message to both parties as an introduction. Using only the first names of each user, it shares a list of the shared interests. If both agree to connect, Gatsby can also set up a temporary SMS relay (up to an hour) so that the users can text each other (and potentially meet in person) without revealing their mobile numbers. From there, it’s up to you. Sure, it seems a little disturbing, but there are great possibilities, too. For the serious and savvy business person—say, a REALTOR ®—this is a bit of magic. In a mature form, it will offer something like prospecting omniscience. Or social X-ray vision. You’ll see and know things you never knew before. Think of how you could connect at a business function, a Chamber event, a sporting arena—the sky is the limit. Or as 1000watt Consulting put it: “social networking” could mean many things today—blogging, posting to Facebook, building a sphere on LinkedIn—but they all require sustained action. What Gatsby suggests is that “social networking” in the future will mean simply being. On the flip side, with all things social media, you must use caution and brush up on your privacy controls and safety know-how because this type of app takes location-based services to a whole new level. Check out other similar apps like or


Vokul—the power of voice Vokul is a new app that lets you control your device while driving with nothing but your voice. It works on pretty much any device with iOS 4.1 or later and doesn’t require you to do anything other than say its name. This is great because it’s difficult to drive safely if you’re using your phone, especially if you have to look at the screen. And, with all the buzz about banning cell phone use in vehicles, this app is a crowd pleaser. Siri on the iPhone 4S is great but it leaves everyone else out of the voice command party. Plus, Siri needs to be tapped to work, while Vokul is completely hands-free. It works like this: When the app is open, Vokul will be listening for the words “Hey Vokul” at all times (you can tell the app to accept voice commands without these keywords, or require a tap first). When Vokul hears this phrase, it’ll respond with a beep and you’ll be able to tell it what you want to do. You can ask it to play any audio on your device, make a phone call or send a text message. And it’s configurable for many of the commands used. Text message dictation allows for punctuation and is remarkably accurate. Reports say it worked flawlessly for testers. One disadvantage with calling is that it requires the app to close so the phone app can open, but Vokul will provide a push alert after the call has finished to make it easier to return to the app. This one’s not free, but will only set you back $2.99.

Conference calling for free If you are still paying good money for conference calls, then it’s time to visit these nice folks. They will give you your own conference line and phone number and let you set up conference calls any time you want—without cost. It’s easy. All you need to do is enter your name and e-mail address— no credit card, no nothing. You will be instantaneously provided with a dial-in number and access code for immediate phone conferencing. Your teleconferencing line is available to you 24/7 for any legal purpose—committee meetings, clubs, training, business meetings, etc. And there is no need to schedule or make reservations. Each conference call account accommodates up to 96 callers and you can make an unlimited number of conference calls—up to 6 hours each. Great service—and the price is right!

VM for your website SpeakPipe is a new app that lets you add a “voicemail” widget to your website. This app gives visitors to your website the ability to speak their request or other information directly to you instead of filling out a lead form or sending an email. The voice message is recorded as an MP3 and delivered to your account. It’s simple, easy and to the point. While the service is still in Beta, it remains free. Set it up and give it a go. It may encourage your website visitors to contact you and, if lucky, help generate usable leads.

Bits and Bytes introduces new marketing features The QR/Mobile Marketing System lets an agent create a complete set of property-specific marketing collateral in about as much time as it takes to pour a cup of coffee. The platform is being described as a complete solution with the following features: a property-specific mobile website; a unique short URL to place on sign riders that links back to the property site; a custom QR code; property flyers for your brochure box; and “Just Listed” postcards for the neighborhood and your farm. The platform, which will contain no advertising, is free for REALTOR® members. In addition, has recently updated its search app for iPad, iPhone and iPod touch users to discover and research pricereduced, foreclosed, and recently sold properties. The search app is compatible with all 4.0 or higher iOS mobile devices and can be downloaded at iTunes.

Sending a card from your iPhone, really? Cards, an app for the iPhone and iPod Touch, lets you create and send highly customized greeting cards to any recipient in your device’s address book, right on the spot. This is a great way to impress a potential client or thank a past client for their business, creating a personalized, printed card of their home while you’re still in their driveway may just be a way to blow their mind. It’s simple to use—pick a theme, snap a picture, add some text, choose your contact and hit send. You can choose an existing photo in your camera roll or shoot the picture from within the app itself. Cards are printed on high-quality cotton paper using a technique called letterpress printing, which creates a truly unique look and tactile feel for each card, and then mails it out for you. The app will even send you notification when the card has been delivered to the recipient. Each card costs $2.99. The cost is much less than in stores. And it is sure to leave a lasting impression.

Locate copied images If you’re worried people might be using an image of yours without telling you, Who Stole My Pictures is an extension for Firefox that lets you reverse search with a simple right-click. Instead of just using one service, Who Stole My Pictures makes use of Yandex, Tineye, Google, Baidu and Cydral to search for your image. With a simple click you can open all five search engines at once to see if anyone has snagged you pictures without credit. It’s similar to the Search By Image extension for both Firefox and Chrome, but adds a few more engines to sift through.

Monitor your website Using what is called behavioral metrics, website analysis services can provide a plethora of data about where visitors come from, how long they stay on your site, links they click, pages they visit and places they exit. This is an important piece of knowledge for any real estate agent. It could help create more business, see what listings are being viewed, and check out resource pages, as well as what links are being followed. There are a number of easy-to-use tools on the market that provide detailed information on how visitors utilize your site. One such online service is called CrazyEgg. It provides heat maps of your site based on what your visitors view and links they click, and it does this comprehensively. It includes many different types of reports for the behaviors demonstrated online. Another service, LuckyOrange, takes online monitoring to a whole new level. In addition to heat maps, this service gives you the ability to record what visitors do on your site, including how they move their mouse, where they scroll, and what they click. It even lets you “spy” on visitors in real time as they use your site. (Note: You don’t actually know who the visitors are; therefore, no invasion of privacy). The service also takes into consideration form filling. If a visitor starts filling out a form on your site and then decides not to hit the “Submit” button, the service records what was typed into the fields and whether or not they decided to follow through.


Legal Update

The Kentucky Court of Appeals holds that brokers and agents are liable for known errors in seller disclosure forms Waldridge v. Homeservices of Kentucky, Inc. is a 2011 decision out of the Kentucky Court of Appeals that reviews the liability of a seller’s agent and broker for errors in the seller’s disclosure form. The case involved a home with severe flooding problems. Over the years, the home was listed multiple times with the same broker but different agents. On these occasions, the seller disclosure form revealed the home’s prior history of substantial flood damage. However, when Mr. and Mrs. Waldridge purchased the home, no history of flooding was included on the seller’s disclosure form although the home was listed with the same broker. The Waldridges first filed a complaint against the agent and broker with the Kentucky Real Estate Commission (KREC). The KREC issued an order dismissing the Waldridges’ complaint without allowing the parties an opportunity to submit evidence and without a hearing. The Waldridges then filed suit in Scott Circuit Court, which entered summary judgment in favor of the broker and agent, finding that no material issue of fact supported the Waldridges’ claims of fraud and breach of fiduciary duties. The Kentucky Court of Appeals reversed on appeal. The Kentucky Court of Appeals held that even absent an agency relationship with the buyer, a seller’s broker and agent occupy a position of trust and owe a duty to exercise good faith to the buyer. According to the Kentucky Court of Appeals, when real estate professionals fail to disclose known material defects to their clients or to third parties, they breach their duty to be honest, ethical and competent, and are thus liable to third parties for their actions. The Court of Appeals acknowledged that where a broker or agent knows a seller or buyer is perpetrating a fraud, the broker or agent will have a dilemma that could jeopardize their own client’s financial interests. However, the Court found that such a dilemma is encountered by professionals in other practices, including the law, and the Court believes this conflict must be resolved in the greater public interest and consistent with applicable standards and codes of conduct. According to the Court of Appeals, the law does not tolerate fraudulent conduct by the general public, and fraud cannot be tolerated by those acting in a professional capacity. The Court of Appeals specifically held in Waldridge that a seller’s agent and broker owe a duty to a buyer not to commit fraud by either misrepresenting a material fact or by failing to disclose a material fact of which the broker or agent have knowledge and


Revised January 1, 2007

Property Address_______________________ __________________________

YES NO UNKNOWN ________________ (h) Have you __________ experienced __________ , or are you__________ aware of, any water or drainage problems Property Address___ with Regard to the crawl space?………………… Revised January 1, 2007 N UNKNOW NO YES …………… …………… 3. ……………. ROOF ___ ___ ___ (a) Age of the roof ?___________________ which may result in an increase ___ ___ ___ __________ __________ ____________ (b) Are you aware of any condition ………….. (b) 1. Has …………… the roof leaked at any time since you have ………………………… or lived in the property? in taxes or assessments?…………… 2. When was the last time the roof leaked?____ owned ___ ___ ___ shared in common with adjoining ___ __________ ___ __________ ___ … (c) Are any features of the property _______ …………… (c ) 1. Have …………… you ever had etc.?……… any repairs done to the roof? …………… …………………. landowners, such as walls, fences, driveways, 2.__________ If you have __________ ___ ever had the_roof repaired, when was __________ ___ ___ the repair performed?______ Explain: ______________________________ __________ ________ __________ you ever had the roof replaced?…………………………… __________ (d) 1. Have ______________________________ ……………… 2. If you have had the roof replaced, ___ ___ ___ ___ when the replacement ___ was___ performed?_____ MISCELLANEOUS ………….. (e) If the………….… 10. roof presently …………… leaks, how often does it leak? (e.g., every ..…………… 1978? before built house this time it (a) Was onlyor materials, after an extremely heavy rain, etc.)______ ehyde, asbestos rains, ___ ___ __________ ___ _____________ …….. (b) Are you aware of any use of ureaformald (f)…………… …….……… 1. Have you ever had roof …………… repairs that ___ ___ involved___ placing shingles on the roof instead lead based paint in or on this home?…… ……. …….…….… of replacing the entire roof? for radon gas?…………………… ___ (c) 1. Are you aware of any testing If you have__________ ___ ever had roof __________2.__________ ___ repairs that involved placing shingles ___ 2. Results, if tested ____________________ on the roof instead tanks, of replacing septic old the entire roof, when d storage tanks, ___ ___ repair performed? ___was the ____________ 4. (d) Are you aware of any undergroun ……………… LAND/DRA …………… INAGE on the property?… field lines, cisterns or abandoned wells (a) Anytermites, soil stability problems?……………… past wood infestation (i.e. ___ ___ ___ …………… …………… ……………… …….. . (e) Are you aware of any present or (b) …………… …………… Has the property ___ ever ___ had …………… a drainage, ___ ___ etc.)?……… flooding, fungi, ___ or grading problem?……………... ___ bores, carpenter ants, (c) Is …………… the property …………… Rev ___ in a flood ……. ___ ised infestation? plain zone?……… wood ___ to ___ January 1, 2007 ___ ___ …………… …………… …………….. (f) Are you aware of any damage due infestation? Is there for awood retention/de ___ ___ tention basin, pond, lake, creek, spring, ts ever been(d)treated ___ or _ (g) 1. Have the house or other improvemen __________ water__________ shed on or adjoining __________ this property? ………………………… 2. If yes, when, by whom, and any warranties? __________ ……………….. SEL Explain:___ LE_________ __________ __________ ___ R DIS ___ __________ The__________ ___ ___ __________ CLOS__________ ___ __________ ___ tionBOUNDAR ...... UR ______________________________ info 5.rma ______ in property?.... E this this OF PROPER formIES action affecting on the datelegal is based upon threatened of his(a)or her TY COND (h) Are you aware of any existing or the undersign Have apply that you ever purc a staked ITION property hase or pinneded’s than ____ ___ …………… survey ofhad ___ obseof the it on: ____assessments ___ rvat ____ (i) Are there any assessments other ionproperty?… ..………. …….. (b)…………… ____ and knowledg Do ____ …………… you know ___ the boundaries? ___ )?………… ____ …………… ___ e about the prop ____ to this property (i.e. sewer assessments ____in_____ and ……………………………………… (datAre (c) …. erty duri ___ codes, ____ the e oflaws, boundaries marked purc ___ ___ any of local, state, or federal hase ng the period ___ endi ___ ) …………… ___ng on …….. way?……… (j) Are you aware of any violations PROPERTY ADD ………….. ________…………… (d) Are there any…………… …………… ___ encroachme g ___beginnin ____ …………… nts or ___ unrecorded property?… RES this easements relating to ____ ________ S: ________ or ordinances relating to the property of____________ which with you regard are ____ aware? defective (dat are ____ This ………….… which e ___ …………… of ____ conditions form other ___ ____ this any …………… ____________ ___ applies to sale ……………form …. (k) Are you aware of ) ………….. ..…………… Explain:___ ___ __ ___ s…………… ________ and purc__________ …………… ____________________ ___ …………… ___ ___ ____ hase …………… __________ ___ property?… s ____ __________ of residentia.. to this 1. Resident ________ ____________ …………… __________ …………… __________ seller?…… l real esta __________ known to ial ___ hazards __________ ____ tal purc ___ te. __________ environmen hase ____ ___ any This there __________ Are s _ 6. s of WATER (l) of new 2. Sale form is not requ ________ …………… homes if……….. …………… on?………… real esta a warranty is ired for: at(i.e., auct (m) Are there any warranties to be passed 3. A cour hail, etc.)? (a)disaster 1. te tornado, Source red; ofion; or supply water __________offe supe by fire or tother _____________ __________ rvised fore ___ __________ ___ _ (n) Has this house ever been damaged clos _______ 2. Are you ure. of __________ __________ aware __________ PUR __________ below normal water supply ___ …….……… ___ pressure? E OF STA ___ or water If yes, please explain: __________POS ..................... …… TEM Is there the:aproperty?.... water purification in ___ ENT fungi disc ___ other(b) or info system or softener ___ mold Com oflosu ___ ___ with re of pleti ___ remaining on of this……… the house?………….. (o) Are you aware of the existence rma (c) …………… Has tion your form water …………… ___ abou ever of been ___ …………… shal tested? If yes, the prop in it?erty's t the property ___ living l satis give fy results the requirem (p) Has this house ever had pets not condition he is_______ Explain: __________ abou __________ ___ __________ ents and t ___ __________ to __________ ___ the be of sell. __________ ___ KRS 324.360 inten improvemen.................. ___ __________ __________ ___disc If yes, Explain ____________________ 7. ded as aSEWER losu ts thereon. This This subs whic_h mandate ................... re is based sole __________ SYSTEM titut ................... info e ................... for rma district?...... an tion statement shal s the inspection or ly on the selle concerni (q) Is the property in a historic cons (a)ng Property l not be warranty the r's observation seller's the property is serviced by: a truc TION warr ____ tion INFORMA purc know __________ anty AL and knowledg , architectural haser may wish __________ by n by__________ the seller. SPACE FOR ADDITION 1. ,Category __________ I. Public e engineer property __________ Municipal to obtain. This the seller or seller's agen Unle Treatment ____ __________ Facility;…… ing, ss othe __________ Other than __________ or any __________ rwis …………… is ……men __________ e advi…………… other specific ______________________________ upon . __________ 2. ng Category ___ t and sed, Seller __________ ___shall ___ lived __________ Treatment the seller does a state t of the Facility;…… a care insp havi area atII. __________ that date. orPrivate …………… s relat since condition own only …………… ons ing the ed to not …………… representati ection3.of these ______________________________ generally ful_________ … any expe the cons Category prop ___ III. the and ___s and ___ erty, the truction or cond possess Package propmakes __________ Plant;……… -inaccessible (date) ertySubdivision seller poss…………… by to closing. the prior ition of the imp ___rtise in___ …………. The seller has owned this property sinceseller seller esses no grea…………… potential 4. Category IV.toSingle become s suchknown mayarea Home buye Aerobic ___ in thiswhich as the rovements on r.Treatment of any changes knowPackage Unless othe ______ System foundatio transact (AKA: ter __________ ledg “Home __________ e ion. agrees to immediately notify Buyer than the Plant”) 5. rwis n Category __________ or It is not a subs V. Septic Tank with that which___ e advised, the roofdrain inspectio __________ __________ . It isfield, ___ __________ lagoon, not aDate could be___ wetland, titute for any seller dispersal; or other onsite warranty obtained has not cond ______________________________ INSTRU ns. 6. Category Seller of any**** VI. Septic inspectio ___ Tank with ucted___ kind by the selle ___ dispersal ns. Purc Date CTIONS TO to an ********** offsite, multi-prope hase rty cluster rtreatment ******************** Seller r is enco THE or by any agen any inspection of system;…… …………… additional page ********** SELLER********** uraged toEobta …………… ********** …………… ********** : (1) TO COMPLET t representing OWNER …………… Com s, if necessar …………… in his D BY THE plete all num ………… ****************************** authoriz __________ REQUESTE 7. Category or her own prof___ BEEN any HAS VII. No y, ______) Treatment/U ___ with ___ bere nknown…… ation at the your signatur NAMED LICENSEE ANY d items.…………… essio FOR (2) THE (b) THE LICENSEE NAMED HERE (_________ e and IV, Report ……………………………. HARMLES ___ nal___ thisproperties (5) with S the V, HOLD TOofFor Category If som AGREEend form dateorand ___ VI systems: I HEREBY to auth time of signing. all known conditions affe orize KRS s do not appl 324.360(9). THIS FORM AND HAS DONE SO. SELLER e item the licen WITH Datey of lastNCE inspection cting the (4) IN ACCORDA see to complete (sewer): to your FORM Complete this __________ ON THIS _______ 'S DIS _____ property__________ __________ CLOSURE: __________ this form on , writ form yourself property. (3) Attach REPRESENTATION THAT APPEAR Date______ e "not__________ last accurate__________ Asof ____ Date (septic): applicable."_____ selle your beha THE or sign the to the best of r,inspection INFORM SOlast I/we disclose SHALL lf in acco cleaned (6) If Date THE AGENT THAT (c) ________ Seller: ______________________________ my/Are you do EDGES rdance with you the follo aware our or entitEyTHIS ACKNOWL any problems AND not know (septic): know FORM wing with theinfo ledgeof KRS 324.360( in conn sewer system?...... COMPLET the TO as ................... rma ectio answ REFUSES of ................... tion the SELLER n with er to ........ THE Explain:___ date signed. __________ regarding the a question ___ ____________________ representatio actual or antic ___9). ___ _____property. Seller authoriz __________ __________ ns of the CONSTRU ipated sale __________ 8. __________ This informa , write "unknown." __________ BUYER. agent. Seller: es the agen__________ __________ CTION/RE of theGprop Please answ MODELIN tion is true and __________ t to provide _____ erty or as othe er all ques____ __________ a copy of this ____________________ (a) Seller: ______________________________ tions. Have rwise provided __________ there been 1. Date: If the additions, ____ statement to structural modificatio TOby law. answ __________ HO er isany EDGE HISns,FAILURE or other alterations yes, pleaTO SYS ACKNOWL a person The following made?........ (b) Date: ______________________________ USE Were TEM REFUSED . all HAS necessary ___ AND expl S permitsseand THIS FORM ain. If addiapprovals ___ government Any Epast COMPLET not the ___ tional spacobtained?… …………………….. are ___ or current THE SELLER HAS REFUSED TO Explain:___ e __________ is prob ___ need __________ lems ___ ed, use the reve __________ (a) 9. _____ affe __________ PlumbingHOMEOW __________ __________ __________ : __________ COMPLETE THE FORM __________ ..…… rse side _or mak NER'S cting Date: ……__________ ________ ION …… (b) Electrica __________ e attachments. ……ASSOCIAT …………..…… l(a) Broker/Agent: ____________________ syst1.em Is…… the property YES subject FORM. to rules or…… regulations (c) OF ………… RECEIPT …… of…… a ______ AppTHIS homeowner's association?…………. NO UNKNOW __________ …… liances……… __________ THE BUYER ACKNOWLEDGES 2. __________ …… If …… __________ yes, what ……………… ___ is the…… ….…………… yearly ___ N ___ assessment? __________ (d) …… __________ $ __________ Floo Date __________ …… __________ ……………… rs and walls…… _____________ ……………… ____________________ ______ ___ ………… TO ……FORM ……Buyer Date (e) Doors and ………… MAY RESPOND ………………D OF AND ___ THIS …… Buyer windTION REQUESTE ………… ___ NOT INFORMA …… ___ (f) AL ……………… ……………… Initials ……Date/Time_ (Buyer)ows ___ ……………… ing and THE SELLER MAY DISCLOSE ADDITIONCeil __________ ………… attic __________ ___ fans .………… …… ___ (g) Security BUYER. ___ _________ ……………… ………………………… ……… Initials (Seller) Date/Time___________ syst ADDITIONAL INQUIRIES OF THE ___ ……………… ………. ___ (h) Sump pum em .…………………… ___ …… …… p ___ …… …… …… ……………… …………. ……………… ___ (i) Chimneys ___ ……………… ………… , __________ ___ ………… Date/Time_ …… ___ (j) Pool, hot fireplaces, inserts ………… Initials (Seller) ……_________ .. ……………… ___ tubs, sauna .…… …… ___ __________ …… …… Date/Time_ ___ …… (k) …… ……………… ……………… Sprinkler syst . Initials (Buyer) __________ ___ ___ em……… ………… ………… ___ (l) Heating ___ ……………… ………………………… ………………………… ….. ___ ___ …… …… (m) Cooling ……………… ___ /air cond ….age______ ………………………… .. ___ ___ ……………… ….. Explain:____ itioning………………..a ___ ……………… ___ ____ ge__ ___ .. ____________ ____________________ ____……………… ___ ……………… ___ 2. ____________ ____________ ___ FOUNDATIO .. ________ ___ ________ ___ ___ (a) Any defe N/STRUCTURE/BASEM ____________________ ___________ ___ cts ____________ (b) Any defe or problems, current or ENT __ past cts or problems , current or past , to the foundation or slab Explain: ____ ? ……………… , to the struc ____________ ture or exterior ____________ ____________ ___ veneer?…….. ____________ ____________ ___ (c) Has the ____________ ___ ____________ base ___ ____________ ______ ___ (d) When was ment leaked at anytime ___ ____________ since you have ____ (e) Have you the last time the basemen t leaked?_____ owned or lived in the prop __ ever had any (f) If you have repairs done erty? ____________ to the ____ had ___ ___ when was the repairs done to the base basement?………………… ________ ___ men repair perform …………… Explain:____ ed?_________ t relative to leaking, ___ ____ ___ ____________ ____________________ ____________________ ___ ____ ____________ ____ (g) If the base ____________ ____________________ _______ ment ___ ____________ ____ ___ rains, only after presently leaks, how ofte ___ ____________ ___ n does it leak an extremely ____ Initials (Buy __ ? (e.g., every heavy rain, etc.) er) ________ time it ____________ __ Date/Tim e___________ ____________ _____

Initials (Seller) _________ Date /Time_______ ____

of which the buyer is unaware. Thus, according to the Kentucky Court of Appeals, if an agent or broker has actual knowledge that a seller has misrepresented a material fact on the seller disclosure form, or that a seller has failed to include a material fact on the seller disclosure form, the agent or broker has an affirmative duty to disclose the error to the buyer. This is a controversial decision, and the body of state law contradicting this case is discussed in Judge Moore’s strong dissent. Although an appeal of the decision was filed with the Kentucky Supreme Court, the litigants have since settled the case. Thus, unless the law in Waldridge v. Homeservices of Kentucky, Inc. is clarified by the Kentucky Legislature or in some future appeals court decision, the existence of errors, misstatements and omissions on the seller’s disclosure statement will remain a potential source of liability for Kentucky real estate professionals.

Doug Martin is Legal Counsel for the Kentucky Association of REALTORS®, and maintains his private law practice in Lexington, Kentucky.

The previous discussion should not be viewed as legal advice. Please consult your own attorney.

Unemployment Bridge Program through the Kentucky Housing Corporation The Kentucky Unemployment Bridge Program (UBP) is a new loan option for eligible homeowners to assist them in making their mortgage payments. To be eligible, the homeowner must have experienced a job loss or reduction in income due to changing economic conditions, through no fault of their own, and demonstrate a need for assistance. The employment or income-related event must have occurred within the three (3) year period prior to the date of application. The maximum amount of assistance is $25,000 or 12 months, whichever occurs first. Of the $25,000, the maximum amount that may be used for reinstatement—all related fees and payments to bring the loan(s) current—is $7,500. Participants must also meet the following guidelines: • Maximum amount of liens on the property cannot exceed $275,000.

• A maximum liquid reserve is six months of PITI (excluding retirement funds). • Borrowers must sign a hardship affidavit acknowledging the reduction in income is due to no fault of their own. The servicer of the loan must be enrolled as a participating servicer. A borrower cannot receive UBP assistance if their servicer has not enrolled as a participating servicer. UBP loans are forgiven over a five-year term at 20 percent per year. Real estate professionals can call Jamie Williamson at 866.633.8896 or e-mail at jwilliamson@kyhousing. org. Homeowners should use or toll-free at (866) 830-7868.

• Maximum of two liens permitted on the property. • Borrower’s principal, interest, taxes, and insurance (PITI) must exceed 31 percent of the gross monthly income, or • Borrower must experience a 15 percent reduction in employment income.


Feature Article

: e t a t s e l a e r n i n o i t a Educ As a real estate professional, you can find education just about anywhere these days. It’s offered through a number of providers in a variety of formats, and is accessible to everyone at any time. Education is required to enter the real estate profession and is mandated by the state each year to remain licensed to practice within the industry. So the question is, why do some agents take only the required amount of education to get by while others seem to seek out education and take as much as they can throughout the year? With all the changes going on in the industry from financing restrictions and foreclosures to technology and legislative programs (and everything in between), real estate professionals have a lot more to keep up with these days. And in surveys and discussions with others, the resounding answer to the question of how to increase professionalism in the industry is, in fact, through education. KAR asked several members who go above the beyond the annual educational requirements to weigh in on why they choose to make education a priority in their business and the benefits it provides. Here are their responses: Tony Clark, CRS, CRB, GRI, ABR, CCIM candidate, licensed in KY, IN and TN Owensboro “If you think education is expensive, try ignorance.” – DEREK BROK Often I’m asked why I believe so strongly in education. Education is the shortcut to success. And who doesn’t want to be successful? We owe it to our families, our brokerages, our clients and customers as well as the general public.

There is no greater investment than an investment in yourself. Education is the cornerstone. And now, as I enter my 37th year as a REALTOR®, what drives me to stay ahead of the curve in education is my personal satisfaction. Within each of us, there is a God-given desire to be of help to others. There’s an innate quality which drives me to succeed. Those who take the time and advance their education have this same innate quality. The bottom line is this—you will never stop learning in the real estate business! Additional education means additional income. The public will compensate you accordingly, and fellow participants will reward you with referrals. 

Cynthia Albright-Parrish, GRI, CRS, ABR, SRES, SFR, e-PRO, GREEN Louisville I feel strongly that education serves as the key to stimulating thought and discourse to stay sharp whatever your career. Every class you choose to attend offers some new idea to take away and improve your performance and provide better service to your clients. Buyers and sellers, especially in today’s market, want and need competent and trustworthy agents to guide them through an increasingly complex process. Having more knowledge and updated information translates to better performance and instills confidence in your clients. I receive more referral business because of the education that I have achieved. I use the same criteria to select referral agents and have never been disappointed. Dedication to learning is a lifelong process. Change in this industry is a constant and a refreshing perspective is essential to staying on top of your game. An agent’s experience is very important but it is more important to continue to improve your skills and stay current. An agent should never rest on past performance, but should always be seeking ways to improve. As a real estate professional, take time to challenge yourself, through education, to reach a greater degree of professionalism.

Professionalism increases when education increases. Members can enhance their professional development skills thru the many opportunities available to us thru KAR and NAR. From the quick onehour webinars to all-day designation courses and college credit hours, take advantage of every opportunity to advance your knowledge. For new agents just beginning their careers, I suggest the GRI courses, Graduate, REALTOR® Institute. These courses provided me a foundation for my listing presentation and marketing plans. For established agents seeking to take their careers to the next level, I suggest the CRS, Certified Residential Specialist.  These courses gave me the fine-tuning of my business development. Every REALTOR® needs to apply a business plan to his or her own career in real estate.


Charlie Collier, GRI, ABR, SFR, e-Pro Cadiz If you are going to be good at something, you must be a student of the game. I believe in this philosophy and that belief prompts me to expand my knowledge of real estate whenever I have the chance. Not having a real estate background when I earned my Kentucky license in 2004, I recognized the need to become better educated about the vocation I had chosen. I was struck by the realization that

m s li a n io s s fe o r p to y e the k for only a few dollars, I could attend training aimed specifically at the subjects I wanted to learn more about and meet my continuing education requirements at the same time. To this day, I appreciate the availability of CE in our state and attend 24 to 30 hours each year. Along the way, designation training has also played a part in my real estate education. I have designations for GRI, ABR, SFR, and e-Pro, and recently completed the online class for BPOR. I also earned my broker license in 2009. I am confident that having this knowledge has assisted my clients and customers, but the benefits go beyond that. My broker, my office colleagues, and my peers all benefit from my knowledge each time we interact. I think, however, that I personally receive the most benefit from the training. We are all responsible for our actions as REALTORS®. Each time I approach a contract, or answer questions for a customer or peer, I remain aware of risk mitigation. Education helps reduce the stress of wondering afterward if I gave the correct advice or provided the best information. That type of confidence only comes with knowledge. I think it is important to remember that when you sit down with a client to write out a listing or draw up an offer to purchase, there is just one professional in the room. Your client is relying on you, as that professional, to provide the best and latest information to assist them. How well you meet that expectation will be measured by your knowledge and understanding of the real estate ‘game.’

University—an Associate degree, a Certificate in Real Estate and a Bachelors Degree. On my quest for education, I have taken courses and now hold titles and designations like GRI, e-PRO, Principal Broker, LeadershipKAR 2006 graduate, REALTOR® Honor Society, and P4PRO. I passed the Certified Floodplain Managers exam, became a member of the Association of State Floodplain Managers, and obtained the Certified Floodplain Manager certification just because I had a property in a flood zone and wanted to know everything I could about that including how to read flood maps. Because I hold education as a high priority, I have had the opportunity to serve with many organizations locally and also at the state level. I am active with the Real Estate Educators Association (REEA) and currently hold the position of vice president with the Kentucky Chapter of this group known as KREEA. This year, I also serve as president of the Kentucky Real Estate Education Foundation (KREEF). I also teach real estate courses because of my passion and desire to share the information and pass on what I am learning to others. Because of my desire to learn, I consider myself an expert and a professional. Although furthering your education may not lead you to teach, it can and will show that you have a desire to be a professional, to be an expert, and to have a desire to be the leader in your industry. Education is a powerful tool!

Christine Morgan, GRI, e-PRO Bowling Green Personally, I feel that education is vital to life. We, as people, are always learning with this choice: Do you learn the hard way by your own mistakes, by someone else’s mistakes, or through an educational option you chose? Personally, I want to learn the most I can from others, in the option I chose. My preference, when taking a class, is to take a course taught by an expert on the topic, someone who has done the research and knows the topic, not just someone who thinks they know the topic or someone teaching old, outdated material. Real estate, just like life, changes often. I strive to be a professional in my field, which means I need to know all I can, and to behave like a professional. One of the easiest ways for me to do that is to take classes to learn about topics I feel are important for me to know. I do not take just the state-required six hours of continuing education, as this honestly does not show my desire to be known as an expert to my clients and fellow agents. I have been licensed and working full time in real estate since January 2000. Since I have become a licensed real estate agent, I have received three degree programs from Western Kentucky


Feature Article cont. Pam Featherstone, working on GRI and e-PRO, then CRS Elizabethtown I realized early in my real estate career that confidence only came with knowledge and that knowledge came with education. Unfortunately, much of the information received in pre-license classes did not correlate well with the day-to-day operations in the workplace. In meeting the demands of the consumer, in the environment present today, with so much information available, it was important to have the correct answers to their questions. Receiving classroom instruction in numerous subjects enables us, as real estate professionals, to do just that. We are responsible to the public to stay informed about the constant changes not only in our own local market, but across the board. My confidence level increases with each bit of knowledge that I receive—which takes place more often than not, in the classroom. In terms of personal education, I usually finish off each year with 20+ hours of continuing education. Each class provides nuggets of information that I can retain and build upon, which not only enriches me but also helps me in my dealings with clients and other agents. I have always believed that getting only the required six hours of CE did not provide enough for most REALTORS® to understand how to reduce risk in our daily business interactions,


how to provide service to the various demographics that have varying levels and desires for their expectations of service, and how to fill out the proper forms and have good document retention habits. Taking classes with other REALTORS® enables us to hear real-life situations they have encountered and how those were handled successfully, or unsuccessfully. These interactions are priceless if you encounter a similar predicament in the course of handling business. Many times we can go through a day in the classroom and “sleepwalk” through the process, which means we’ve entirely missed the point of receiving the education we wanted and have paid for to attend. Every chance that I get to speak to new agents I tell them, “Do not neglect to take as many classes as you can get. You can only get better through education, and you’ll have the confidence when speaking to your clients in real estate.”

To learn more about the types of education offered through the Kentucky Real Estate Education Foundation, visit If you would like to start your designation or certification journey through online courses, visit

Business Tools

Why fair housing still matters in 2012 by the Kentucky Commission on Human Rights When referring to fair housing, one is usually talking about the Fair Housing Act amended in Title VIII of the United States Civil Rights Act of 1968. It was signed by President Lyndon B. Johnson. Also applicable in Kentucky are fair housing laws amended in Kentucky Revised Statutes Chapter 344, the Kentucky Civil Rights Act, which was signed by Governor Edward Breathitt in 1966. These laws prohibit discrimination in housing on the basis of color, disability, familial status (families with children under the age of 18), national origin, race, religion, sex, and retaliation. These classes are protected from discrimination in the sale and rental of housing, home improvement, mortgage lending, home insurance, and in other real estate-related transactions. Pursuant to these laws, on the basis of any protected class, it is unlawful to refuse to sell, rent or lease a property, to discriminate on the terms and condition, to deny any services or facilities relating to housing, or to refuse to make reasonable accommodations or modifications for qualified individuals with a disability.      It has been more than 40 years since the enactment of the Fair Housing Act, yet many Americans still experience discrimination in housing. The National Fair Housing Alliance, a reputable national fair housing organization, states that about four million fair housing violations occur each year. Less than one percent of the violations are reported. The U. S. Department of Housing and Urban Development (HUD) reports that in 2010, 10,155 fair housing complaints were filed across the United States. Of these complaints, 4,839 were based on disability, 3,483 on race, 1,560 on familial status, 1,177 on national origin, 1,139 on sex, 287 on religion, 219 on color, and 707 on retaliation.

April 2012 marks the 44th anniversary of the 1968 landmark Fair Housing Act. Each year REALTORS® recognize the significance of this event and reconfirm their commitment to upholding fair housing law as well as their commitment to offering equal professional service to all in their search for real property   In Kentucky, HUD reports that in 2010, 126 fair housing complaints were filed at either the Kentucky Commission on Human Rights, Lexington-Fayette Urban County Government Human Rights Commission, Louisville Metro Human Relations Commission, or HUD, itself. The Lexington Fair Housing Council, a private nonprofit agency that handles fair housing complaints, received 103 fair housing inquiries in 2011. Of these inquiries, 47 were based on disability, 16 on race, 14 on familial status, eight on national origin, 16 on sex, one on religion, and one on sexual orientation. The Lexington Fair Housing Council reports that many of these inquiries were conciliated before a formal complaint was pursued. Conciliations are similar to settlements in civil suits.

The above statistics show that the basis of disability accounted for 48 percent of the complaints, while 34 percent were based on race, and 15 percent on familial status. These trends represent a challenge for Kentucky, taking into account the current state demography. The U.S. Census Bureau American Community Survey reports that 711,057 Kentuckians have a disability. The 2010 U.S. Census shows the state is becoming more diverse. It shows that Kentucky is home to 337,520 African Americans, 132,836 Hispanics, 48,930 Asians, 10,120 Native Americans, and over 55,551 people with other ethnicities.   The Kentucky Housing Corporation in 2009 published a report titled, The Analysis and Impediments to Fair Housing. The study shows that many “residents in Kentucky lack knowledge of their fair housing laws and rights.” In addition, it states that “the housing stock in Kentucky is not adequately accessible” and that “the majority of the state [of Kentucky] has inadequate landlord-tenant protection.” Kentucky lacks an enforceable Uniform Residential Landlord and Tenant Act (URLTA). The URLTA provides balanced rights and responsibilities for tenants and landlords and provides equal housing opportunity. Currently, the URLTA is a state law that gives local governments the authority to choose whether or not to adopt the provisions. About 18 cities and counties have adopted the law.   It is evident that inequality in housing is still pervasive. Housing discriminatory practices hurt many Kentucky families. The need to increase public awareness about fair housing is as important as it was when the fair housing laws were passed in 1968. As we reflect on fair housing during the U.S. during Kentucky Fair Housing Month in April, the public is challenged with the question, ‘What can I do to eradicate housing discrimination so that every Kentuckian will have the opportunity to prosper regardless of one’s disability, race, color, sex, religion, national origin, or familial status?’  To learn more about fair housing laws, every person’s right to fair housing, and how to comply with fair housing laws, please contact the Kentucky Commission on Human Rights at 800.292.5566.


Legislative Update

Legislative hot topics for the 2012 session Local Occupational License Tax Forms—HB 277

Slayer Statute/S.A.F.E. Act—HB 409

HB 277 was created to simplify the process of doing business in Kentucky. The bill, sponsored by Rep. Jody Richards, requires the Secretary of State to create a standard form to be used by all local tax districts for the filing of returns of net profits, gross receipts and occupational license taxes. The current system consists of over 200 local taxing districts, each with its separate and unique filing form, creating an administrative nightmare for many service providers including REALTORS®.

HB 409, introduced by Rep. Joni Jenkins and co-sponsored by many real estate licensees, amends the law in relation to property forfeitures in the case of unlawful deaths, and removed the requirement that real estate professionals provide advice to the clients on the statute’s provisions. HB 409 also makes changes to the KY S.A.F.E. Act which Kentucky adopted in 2009. Unfortunately, it included some provisions that were very negative to the real estate industry – essentially prohibiting loans via owner/ seller financing, commonly referred to as land contracts or contracts for deeds. To address this unintended consequence, an Executive Order was issued in January allowing ‘natural persons’ to make up to 4 loans each calendar year. The amendment to HB 409 goes a step further allowing ‘entities’ to do the same – such as LLC’s.

Private Transfer Fees—HB 533 One of KAR’s legislative agenda items was introduced in the KY House of Representatives as a ban on third-party private transfer fees (HB 533). Also known as reconveyance fees, recovery fees, capital recovery fees, or resale fees, a private transfer fee is a charge that is required to be paid to a developer, HOA or individual at closing each time a property is sold. The transfer fee is attached to the property as a covenant and usually runs for a set period, often for 99 years. While developers say it is a way to spread improvement costs over a longer period, opponents believe private transfer fees decrease affordability, increase potential liability, and provide no benefit to property purchasers of the community in which the property is located. To date, over 36 states have either banned or placed conditions on the practice.


Expediting Foreclosure Properties—HB 396 HB 396 creates an expedited sale mechanism for foreclosures involving vacant and abandoned real property. This bill also increases penalties for an offense for defrauding a secured creditor and would include situations where the property is intentionally damaged. To find out more about these and other legislative issues, visit > Government Affairs > Issue Tracker.

Governor’s Blue Ribbon Commission on tax reform Governor Beshear announced he would create a Blue Ribbon Taskforce to propose changes to the current tax system. There are 23 members on the Commission which will be led by Lt. Governor Jerry Abramson. Goals for the Commission include fairness, competitiveness, simplicity and compliance, elasticity, and adequacy. To view the list of members, meeting locations, and to stay up to date on the Commission’s activities, visit the Lt. Governor’s website read more about the Commission visit

Four out of five ain’t too bad Nearly 80 percent of REALTORS® are registered to vote, but we can do better. As real estate professionals, it is your role to help protect the interests of the real estate industry. By making sure that you are registered to vote on key issues and races, we help to ensure The Voice for Real Estate® is heard by legislators at the local, state and national levels. The deadline to register to vote for the Primary election is April 23, 2012. To register to vote, visit your County Clerk’s office or the Kentucky State Board of Elections at

Presidential Primary Election - May 22, 2012

Rally to protect the American dream in D.C.

State Primary – May 22, 2012 General Election – November 6, 2012 Polling Hours – 6am to 6pm

The REALTOR® Party appreciates what each of you do every day to ensure that the American Dream of home ownership, and investment in real estate, remains the core fiber in the fabric that makes America so great. Every May, NAR holds its Midyear Legislative Meetings & Trade Expo in Washington, D.C. Although thousands of REALTORS® attend the Midyear meetings, this year that’s not enough. With the challenges facing real estate and home ownership, this year NAR is having the REALTOR® Rally to Protect the American Dream in Upper Senate Park at the U.S. Capitol. NAR leadership has asked us, as members, to fill the park with REALTORS® on the morning of May 17. NAR President Moe Veissi has said, “Our industry is facing a crucial moment. Never before in the history of our great nation have housing and real estate been forced to defend the benefits they provide our country. The very foundation of civilization is no stronger, nor more enduring than the integrity of the homes on which they rest. We are going to defend the American Dream from the doubters who say home ownership and real estate have run their course. We are going to show Congress that no one cares more about revitalizing real estate for future generations than REALTORS® do.” For more information and to register for this visit

Date: Thursday, May 17, 2012 Time: 9:30 AM - 11:00 AM Location: Upper Senate Park, Washington, DC 20001


Legislative Update cont. Names in blue are also Big Blue contibutors of $1500 or more Names in italics are Hall of Fame members Names in bold are President’s Circle members

Sterling R $1000-$1499.99

2011 RPAC Awards

Dennis Anderson

Highest Membership Participation Henderson-Audubon Board of REALTORS® 80.36% Participation

Lamont Breland Tony Clark Steve Cline Jayne Cox Barbara Curtis John Davis Louise Edelen Carolyn Edwards Helen Fardo Susan Helm Todd Hyatt Nina Kirkland Constance Lawson William Leslie Brenda Loyal Rue McFarland Ann McDonald Louise Miller

Most Contributions Raised Overall Greater Louisville Association of REALTORS® $38,721.73.00 Pacesetter Award— First to achieve goal Hopkinsville Christian & Todd County Board of REALTORS® December 2010 Largest Percentage Over Goal Small Board Hopkinsville Christian & Todd County Board of REALTORS® 391.74% of Goal

Elizabeth Monarch Guy Montgomery Charlie L. Murphy Joann Risner

Medium Board Greater Owensboro REALTOR® Association 358.65% of Goal

Betty Schutte Mary Anne Simmons Joseph Simms


Carl Tackett Harrell Tague Linda Wiley Melissa Winchell John Weikel

Thoroughbred $500-$999.99 Michael Becker Al Blevins Steve Castlen Brad DeVries Michael Farrar Alma Hopkins Brenda Lee Charles Nichols Janet Perkins Jeff L. Smith


As of March 12, 2012

Thompson receives 2012 Kinman Award KAR awarded the Jess and Carolyn Kinman Award to Representative Tommy Thompson. Representative Thompson is a longtime supporter of homeownership and property rights. In 2011, he was responsible for moving forward important changes to the Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act) that protects home buyers and sellers throughout the state. Representative Thompson, who represents part of Daviess County and all of Ohio County, is a REALTOR® and builder in Owensboro and serves the House as Majority Whip. As part of the award, First Federal Savings Bank of Frankfort makes a charitable donation in the name of the award recipient. This year, Representative Thompson selected the Cliff Hagan Boys and Girls Club in Owensboro. The award is named in honor of Jess, KAR past president and REALTOR® of the Year who passed away in 2007, and his wife Carolyn, who worked for many years at the Legislative Research Commission and General Assembly. It is presented to an outstanding Kentuckian whose involvement in the legislative and political arenas have left an indelible mark on all those who have known or worked with him or her.

Code of Ethics

What does your company’s domain name have to do with the Code of Ethics? In March 2012, the National Association of REALTORS® announced it had won a challenge to the use of its trademark, REALTOR®, in a domain name operated by a former member. NAR rules allow members to use its trademarked name, REALTOR®, in domain names according to specific requirements and rules. After extensive, but unsuccessful, efforts by NAR to persuade the operator of the website to comply with those rules, NAR challenged the use of that domain name in an administrative proceeding before the Internet Corporation for Assigned Names and Numbers (ICANN), the body that governs the use of such domain names. ICANN issued its decision on March 7, holding that use of was misleading and not adopted in good faith. In 2008, NAR made revisions to Article 12 of the REALTOR® Code of Ethics to reflect members’ clear obligation to be honest and truthful in real estate communications and present a true picture in advertising, marketing and other representations. Those “other representations” include the use of URLs or domain names. While the ICANN case referenced above involved a former member who was no longer obligated to uphold the REALTOR® Code of Ethics, current REALTOR® members would be wise to pay close attention to the domain names that they purchase and renew.

NAR’s case interpretation #12-22, which involves domain name purchases, examines an example in which domain names were purchased by a REALTOR® based on competitors’ firms’ names, but never used. This would prove particularly problematic if REALTORS® conducted business in the same region. Standard of Practice 12-12 bars REALTORS® from registering URLs or domain names which, if used, could present less than a true picture. In the case interpretation, the respondent argued that she had not actually used the domain names, so she couldn’t understand how she had violated Article 12. The Ethics hearing panel did not agree and found the respondent in violation of Article 12 of the REALTOR® Code of Ethics.

Code of Ethics Training Deadline: December 31, 2012 REALTORS® are required to complete ethics training for the current cycle running January 1, 2009 through December 31, 2012. KREEF has several options available. See page 19 or visit for more information.

Use of term “REALTOR®” in a doman name

NAR Code Of Ethics video series

NAR owns numerous U.S. trademark registrations for the term “REALTOR®,” and only NAR members can use the REALTOR® marks in connection with a member’s name or the legal name of his or her real estate firm to identify themselves as a member of NAR. Members are given notice of this obligation upon obtaining membership with the association. NAR also permits the use of the mark REALTOR® in a domain name or advertisement, but only in connection with the member’s name or firm’s name. To learn more about NAR, its trademarks and the rules that govern them, visit and search trademark.

NAR has put together 15 short video segments covering the preamble, articles and many standards of practice of the Code of Ethics. There also is support material and questions to stimulate discussion. It’s available 24/7 and it is FREE! Simply go to


Education REALTORS® required to complete ethics training by December 31 REALTORS® are required to complete ethics training for the current cycle running from January 1, 2009 through December 31, 2012. Failure to complete the required ethics training will be considered a violation of a membership duty and could result in membership suspension or termination. REALTOR® members can verify ethics completion by checking with their primary local association and should notify that association when their requirement is completed. There are several options offered by KREEF to satisfy the requirement including: Know the Code: Real Estate Ethics Online course (also counts as 6 hours CE) Code of Ethics vs. License Law Classroom course in Cadiz (counts as 3 hours law CE) Ethics & Real Estate Classroom course in Shelbyville (counts as 3 hours elective CE) GRI 1: Professionalism in Real Estate Classroom course in Lexington (counts as 6 hours CE)

CRS Elective One-Day Course Silver Bullet Solutions Thursday, May 10 Instructor: Michael Selvaggio, CCIM, CRS, GRI RASKY Office, Bowling Green, KY 9am - 5:30pm (CST) Fee: $99 (early-bird before April 26; $129 after/at the door) Approved for CRS elective credit, GRI elective credit and 3 hours CE elective credit. Learn more at > CRS

KAR Broker Summit Monday, April 23 GLAR Office, Louisville, KY Limited seating is available The only statewide broker training event in Kentucky will feature Oliver Frascona; topics to be covered include E&O risks, closing disasters, economic update focusing on the tax structure in Kentucky, industry update from NAR, and the most common complaints received at KREC from both real estate agents and consumers. The day will be filled with takeaways that you can implement at your office and share with your agents immediately! Learn more at > Events > Broker Summit

REALTOR® University – Move toward a designation is the portal to online courses under NAR’s official family of designations and certifications including ABR®, AHWD, BPOR, e-PRO ®, CIPS, GREEN, RSPS, SFR and SRES®. Check them out and get started.

Online CE: Easy and Convenient Courses are available to you 24/7—all you need is a computer and internet access. It’s that simple. These courses can be taken at your pace. Finish the entire course in one sitting or you can pick up where you left off. Know the Code: Real Estate Ethics 6 hours (3 hours law credit & 3 hours elective credit) Foreclosures, Short Sales, REOs & Auctions 6 hours (3 hours law credit & 3 hours elective credit) Environmental Issues in Real Estate 6 hours (3 hours law credit & 3 hours elective credit) Real Estate Finance Today 3 hours (3 hours elective credit) Fair Housing 3 hours (3 hours law credit)

Live Webcam Classes—CE and Core > Live Webcam Classes Take your CE or Core in a very innovative way—online with live instructor interaction, but no final exam to pass. These courses are offered at times convenient for your schedule and assistance is offered to help alleviate any concerns prior to beginning class. All you need is a webcam with audio so the instructor can monitor your presence during the class. Don’t let the format scare you; it’s really easy and, once you finish class, you can Skype all your friends to let them know how tech savvy you are.

LeadershipKAR Would you like to join the ranks of some of the most successful REALTORS® from around the state? You can by becoming part of the 2013 LeadershipKAR program. Recognizing that leadership development is an essential element in the process of improving our Association and profession, KAR attempts to identify emerging REALTOR® leaders in the state, encourage them with motivational activities, and assist in sharpening their leadership skills in the hope they will exert a strong positive influence on the future of the Association and profession. To learn more or download an application, visit > LeadershipKAR

Scholarships available including $10,000 for graduate program KREEF makes scholarships available to members to obtain the GRI designation as well as provide scholarships to members or to the immediate family of members who wish to further their education at the college level. Another scholarship available to members is $10,000 to attend REALTOR® University’s Master of Real Estate program, a unique, exclusively online curriculum that caters specifically to the needs of real estate professionals. The deadline for submitting applications is Friday, June 8. To learn more or download applications, visit > Scholarships.


Broker Information

The new brokerage firm—supervision, office policy and attention to detail By Oliver E. Frascona, Esq.

You have just opened a new brokerage company and things are really happening. Agents want to “come over” and people are taking listings, showing buyers and making sales. Man, that is the way it should be. What should you be doing to make sure that it all works and you stay on the good side of the agents and regulators? There is no shortage of things to think about as the new broker-in-charge/owner. These three areas all overlap but the result is the same. Don’t just leave the light on; keep an eye on the rules of your business.



Supervise those that have licenses under you. Issues will come in through the agent door. Let the agents know that you are always available, and always be available for them. There is a tendency to let the people “with experience” just run with things. Imagine the amazement of a local broker when he found out that his “office manager/recruiter” was also listing, advertising and selling real estate. No, he did not have a license. Everyone needs to be supervised—the new, experienced and medium agents. Hire people who will do it your way and not fight you about your policies. You decide how you will operate and let them decide if they want to work under you. Start with verifying with the Real Estate Commission that each person is licensed. Next, make sure that the Errors & Omissions insurance for both the company and each licensee is properly paid up, high enough, and current. Think about an umbrella policy for a big mistake. Mark the renewal dates for licensees so that you are sure that they renew with the state. It is a mess when the claim comes in and we find out that the agent’s license is not current, so there is not only a license law violation but no insurance. Remember the insurance runs with a valid license. This is an easy thing to miss now that a lot of states including Kentucky have renewal dates other than the end of the calendar year. Supervise each transaction. Make it known that all listings, sales and closing are actually reviewed by the company. Do it.


Office Policy.

Don’t leave home without it. A comprehensive office policy that identifies all aspects of the operations of the brokerage is critical. Ideally it is in place before the first agent is signed up. A “standard” is set at the beginning, and you are not backpedaling and making exceptions and alterations for different groups of agents. You may need to offer different compensation plans in recruiting or retention, but the basics of the operation must be set out in the office policy. Compensation can be an amendment or “fill-in” to the independent contractor agreement. Please have one agreement for every agent. This is where you cover a myriad of issues: procedures for listings and sales, systems for access and dissemination of information to the public, and decisions on office agency policy (assigned/ designated, dual, transaction brokerage). How are we going to operate? Easy to set up, hard to change. This is not the place for compensation. This is the place to write the rules of the road for the brokerage. Take the time to outline it first. Then fill in the outline and finally let the attorney review it. In addition to the items mentioned in Supervision, you need a policy on multiple affiliated business relationships. You need to fully understand and make


sure your agents understand what the rules are for those that also want to be in the mortgage business, the title insurance business or other related businesses. Incorporate RESPA into your office policy. If in doubt, start with—no one can do anything but list and sell property for the public—no multiple businesses without broker/ owner consent and work from there. Make sure that the rules for self-dealing are well laid out. If an agent is going to buy or sell for their own account, many Errors and Omissions insurance policies do not cover that activity. Many offices have policies that indicate that a licensee cannot buy/ sell without the prior consent of the broker, whose consent can be withheld. The more hats the agent wants to wear, the greater chance that one won’t fit. The same rules apply for those that want to build, manage, list and sell property.


Attention to Detail.

Be known as a detailed person. If you set a good example, others will follow. The tendency to delegate to others as things pick up is hard to resist. After all, if you want to make it big, you cannot micromanage the operations. The delegation of duties needs to be documented, well thought out and reviewed on a quarterly basis. Make sure that those you trusted to keep an eye on others are doing it the way you wanted it done.

Hire professionals to take on some of the details. Associate with a good CPA who does the tax payments for all employees. Missing a federal tax payment will ruin any great day. Make sure you have an attorney—who knows your business—available as needed—one without too many potential conflicts.

Oliver E. Frascona is the featured speaker at the upcoming KAR Broker Summit being held on Monday, April 23 in Louisville. To register for the event, please visit Oliver is a shareholder in Frascona, Joiner, Goodman and Greenstein, P.C., a Colorado law firm. His practice areas include Real Estate, Brokerage Law, Contracts, Finance, Land Use, Leasing, Real Estate Title, Business Law, Association Law, and Litigation. Disclaimer: Content is general information only. Information is not provided as advice for a specific matter, nor does its publication create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult an attorney.


Local Association News Local boards/associations are encouraged to submit information for this section. Pictures must be at least 300dpi. Send all association news to

Paducah Board kicks off New Year by “Thinking Out of the Box” The Paducah Board kicked off the 2012 year with Valentine’s Day presents to the girls at Sunrise Children’s Services, Genesis Center in Mayfield, Kentucky. The Genesis Center cares for girls ages 12-17 who have suffered from abuse and neglect. Last year, REALTORS® in Paducah donated cash, held auctions and bought many gifts for the girls at Genesis. The gifts were just another way of reaching out to the young girls who need to know someone cares.

REALTOR® Association of Southern KY gets members involved RASKY has incorporated a “Get Involved, Get Rewarded” Points Auction to their list of member benefits. Members accumulate points throughout the year based on their participation in different activities and events, both at the association (local, state and national) and in the community. Accumulated points, which are used as dollars, can be used to bid and purchase items (some donated by affiliate members and some purchased through different committees) at the auction. Members enjoyed the event and it was a great success in 2011! As a result, RASKY will continue the program again this year. On another note, RASKY provides a scholarship opportunity to high school seniors within the counties served by the association. Applicants complete an essay titled “Why Homeownership Matters” and include the importance of using a REALTOR®. The goal of this program is to increase public awareness of why home ownership matters and the benefit of using a REALTOR® in the day-to-day process of buying or selling real property. First place is awarded a $1,000 scholarship, second and third place while finishers are both awarded a $500 scholarship. The winning essay is also published in the Bowling Green Daily News.

GLAR members involved in the community GLAR members are very active in their local communities and with the help of the Community Relations committee, opportunities to volunteer and give back are readily available. Recently, the committee hosted the Charity Bowl-a-thon which raised over $4,000 for two local charities and had over 200 members participate. New in 2012, our committee members adopted 38 homeless men from the 10th Street YMCA, and each


month members deliver a special care package to each one, many times with the support of their offices. GLAR also has a Pay It Forward Initiative where committee members visit an office to discuss upcoming community projects, then gives the office $100 to “Pay it Forward” in the community. Other upcoming community projects GLAR will lend support include Repair Affair, Camp Quality Carnival Day, Kosair Hospital Meals, and hosting an ice cream social for the St. John Center for Homeless Men.

Murray Calloway County Board honors members The MCC Board had two members, Loretta Jobs and Lynda Houck, qualify for the Circle of Excellence Award in 2011. The Circle of Excellence Award encourages members to go above and beyond in their profession as a REALTOR® while pushing themselves to a higher level of achievement. Members must, among other things, receive education above what is required, attend KAR or NAR meetings, and attend at least 50% of the local membership meetings.

Lexington Bluegrass Association gives member awards Melinda Earlywine from Anderson County was named the 2011 REALTOR®—Community Housing Foundation (RCHF) Volunteer of the Year. Melinda organized the first ever Repair Affair in Anderson County and managed nearly the entire process from start to finish. In addition, Jim McKeighen was the 2011 Good Neighbor Award recipient. Jim has been a member of LBAR for 24 years, and a volunteer at God’s Pantry for six.

Three KY counties awarded first Work Ready Communities certification The Kentucky counties of Daviess, Warren and Woodford counties have been certified as the state’s first-ever Work Ready Communities, and Russell County has achieved Work Ready Community in Progress status. The new certification program from the Kentucky Workforce Investment Board (KWIB) and the Kentucky Education and Workforce Development Cabinet assures employers that a local workforce has the talent and skills necessary to staff existing jobs and to master the innovative technologies new jobs will require. Kentucky is the third state to begin certifying counties as Work Ready Communities based on the quality of their labor force. To become certified, communities must gather local support and commitment and apply for the Work Ready Community designation. Counties have to meet criteria in six areas including high school graduation rate, National Career Readiness Certificate holders, demonstrated community commitment, educational attainment, soft-skills development and digital literacy.

Danville named to list of “Top 5 Best Places to Retire” According to CNNMoney, Danville was the fourth-best place to retire in 2011. For its rankings, CNNMoney used a database of about 1,200 cities with at least 30 percent of the population over age 50. According to the 2010 Census, about 37 percent of Danville’s population fit those demographics.

Kentucky rises high on Forbes’ Best States for Business List In just one year, Kentucky climbed six places to No. 25 on Forbes’ annual Best States for Business list, released late last year. Kentucky’s ranking ties only one other state for the largest increase over a 4-year period, jumping 19 spots since 2008. The annual ranking takes into account a variety of factors, including business costs, growth prospects, labor supply, regulatory environment, current economic climate and quality of life measures. Kentucky placed highest in the business cost category, ranking 12th among all 50 states.

Louisville becoming a “great place to eat” Southern Living magazine just named its Tastiest Town in the South and Louisville came in second. In addition, Louisville has also been listed as one of the “best foodie getaways around the world” by Zagat Survey LLC, which ranks leisure activities such as dining, travel, nightlife, shopping, golf, theater, movies and music.

Owensboro makes Forbes list for best 100 small places The city of Owensboro is ranked 58th on Forbes magazine’s list of Top 100 Best Small Places for Business and Careers. Forbes looks at the 200 largest metropolitan statistical areas in the U.S. They consider metrics relating to job growth, costs, income growth, educational attainment and projected economic growth, quality of life issues like crime rates, cultural and recreational opportunities and net migration patterns, and the number of highly ranked colleges in an area.

Kentucky communities receive cultural district certification The first five communities to receive Kentucky Cultural District Certification were announced in a significant step toward linking cultural assets and economic development. The five communities selected were Berea, Covington, Danville, Horse Cave and Paducah. The Cultural District Certification program, administered by the Kentucky Arts Council, encourages community engagement and partnerships to build vibrant communities through the arts. A cultural district is a well-recognized, labeled, mixed-use area of a community featuring a high concentration of cultural amenities that attract local residents and visitors alike. Cultural districts can be found in any type of community, from small and rural to large and urban. Kentucky’s program is designed to showcase each community’s unique character and assets.

Louisville chosen “Manliest Town in America” by GQ Magazine In the March issue, Louisville was named tops in an article that highlights many of the landmarks, restaurants and hotels the city has to offer. It starts with this: Yeah, yeah, Chicago has broader shoulders. But when it comes to the masculine arts—bourbon, baseball, bettin’ the ponies—good luck topping Louisville. And don’t worry, the city’s not just coasting on its history. Lou-uh-vul strikes a balance between the traditions for which it’s justly famous and a right-now vibe that gives the town and its 750,000 residents a kind of courtly southern swagger. The gentlemen of Louisville know how to compliment a woman—and do so often.

Governor Beshear has appointed Robertson I. “Rip” Phillips of Louisville, to the Kentucky Radon Program Advisory Committee. He represents the KAR and will serve for a term expiring June 30, 2014. Phillips is a real estate broker, the owner of Advantage 33 REALTORS®, and serves on the KAR Board. Governor Beshear has appointed G. Herbert (Herb) Pritchett of Henderson, and Sam Blackburn of Frankfort, to terms expiring November 12, 2014, as members of the Kentucky Real Estate Appraisers Board.

Local Association ROTY for 2011 Steve Davis

REALTOR® Association of SKY

Casey Weesner

Lexington Bluegrass Association

Lee Hollis

Somerset Lake Cumberland Association

Tammy Cothran

Murray Calloway County Board

Gail Niehaus

Greater Owensboro REALTOR® Association

Paul Ogden

Greater Louisville Association

Melissa Johnson

Old Kentucky Home Board (President’s Award)

Robert Wyatt

South Central Kentucky Association

Pam Featherstone

Heart of Kentucky Association

Gwyn Danner

Pennyrile Board

Donna Nunn

Henderson Audubon Board

Tonja West

Hopkinsville Christian & Todd County Association

Marshall Long

Shelbyville Board

Ron Spanton

Kentucky-Barkley Lakes Board

Cindy Conley-Jones

Ashland Area Board

Johnny Hodge

Northern Kentucky Association


By The Numbers


The average closing cost for a home in Kentucky, ranking the state as 45th lowest in the country, the same as last year, according to a study. Last year, however, the total cost came in at only $3,341, somewhat lower than this year. The breakdown for 2011 was $1,525 for origination and $2,102 for title and closing.

The percent of home buyers who used the Internet to search for a home who eventually purchased through a real estate agent.




The median square footage of Kentucky homes for sale at as of September 2011. The median square footage for the U.S. was 1,761. Utah lead the list at 2,305 while Washington D.C. was the smallest at 1,000.


At Inman NYC 2012, it was said that 92 percent of successful agents are in their brickand-mortar offices fewer than 15 hours per month.



Average amount paid as a down payment on a Kentucky home between November 2010 and November 2011, according to LendingTree. The national average was 12.29 percent and New Jersey was the highest at 13.71 percent.

According to the NAR Profile of Home Buyers and Sellers 2011, for the first time, the internet has surpassed agents as being the first source (40%) where buyers learned of the home that they ultimately purchased. Learning about the home from an agent was a close second at 35%.

40 VS. 35



According to the real estate research firm Hanley Wood Market Intelligence, the percentage of homes purchased in 2011 that were fully bought with cash. That’s up from 34 percent in 2010, and double the 19 percent rate recorded in 2006. It was noted that cash-paying investors are responsible for an increasing share of home purchases nowadays.

ONE THIRD In 2011, the number of first-time

Nearly three-fourths of U.S. smartphone owners have devices that run on either Google’s Android platform or Apple’s iPhone platform, according to the latest monthly report from metrics company comScore Inc. Overall smartphone ownership among U.S. mobile subscribers 13 and up rose 10 percent in the three months ending in October 2011 from the previous quarter, to a total of 90 million people. That’s 38.5 percent of all U.S. mobile subscribers.


3 4 37%

homebuyers who received a cash gift or a loan for a down payment from family or friends, according to NAR. That is up from a historical average of 27%.

In 2011, first-time homebuyers constituted this percent of the market; the lowest percentage since 2006. In the past two years, the proportion was 47 percent and 50 percent respectively.

The percentage of U.S. households that own homes, the lowest point since 1996, the Census Bureau says. That marks a shift after nearly two decades in which homeownership grew before peaking at 70 percent during the housing boom.

The percentage of consumers who choose the first real estate company that gets back to them after a contact.




$681 billion

The value that homes nationwide likely dropped in 2011, according to property search and valuation site Zillow. That figure is 35 percent less than the drop experienced in 2010, when the nation’s homes lost $1.1 trillion in value. Most of the decrease in 2011 occurred during the first half of the year, when the market lost $454 billion in value, Zillow said.

Housing Stats

Kentucky home sales end year on high note Housing affordability is currently the most talked about factor in housing. NAR’s national Housing Affordability Index showed that affordability across the country reached a record high in 2011 the highest, in fact, since recordkeeping began in 1970. Because of the favorable environment for housing, the real estate environment for 2012 seems to be starting off with a bang. The nationwide uptrend in home sales, however, is not because of affordability alone. In fact, the housing market is seeing increased activity because of additional underlying fundamentals that lend themselves to affordability—pent-up household formation, recordlow mortgage interest rates, bargain home prices, sustained job creation, and rising rents. In Kentucky, activity started improving greatly in the second half of 2011 after a disappointing first half where total homes sold were being compared to 2010 where a federal government tax credit was in place. The third quarter of 2011 saw an improvement of 14.7 percent in total homes sold with the last three months showing increases of 14 percent, 20 percent and 7 percent. For the year as a whole, these increases didn’t overcome the declines in the beginning of 2011 as total homes sold ended down 2.5 percent. Prices during the last six months fluctuated slightly, but the median price of a home in Kentucky ended the year down 2.9 percent at $106,500. As for 2012, the three largest associations in Kentucky—Louisville, Lexington and northern Kentucky—all reported home sale increases of over 20 percent for February compared to the same month last year. “Kentucky has always been an affordable state for housing as compared to other parts of the country,” said Ann McDonald, president of the Kentucky Association of REALTORS®. “With the positive signs coming out of the real estate market over the past several months, it seems people are really starting to take notice. Our hope is that 2012 continues on just as it started and we see a pleasant rise in home sale activity.” A positive sign for Kentucky, and the promise for a healthy market, is that unemployment hit a three-year low of 8.8 percent in January 2012, down from 9 percent in the previous month. Kentucky’s share of the foreclosure market has remained relatively flat throughout the past two years, which is also a good economic indicator that the Bluegrass state is holding strong. It ranked 32nd out of all the states in foreclosure activity in January, resulting in 1,068 total foreclosures, or one for every 624 households. Every state that borders Kentucky, with the exception of West Virginia, has a higher foreclosure rate, with Ohio, Indiana and Illinois having rates higher than the national average.

Year End 2011 vs Year End 2010 BOARD/ASSOCIATION


REGION ONE Henderson-Audubon Board


312 -14.42% 108750



Hopkinsville-Christian & Todd County Board


331 6.34%




Kentucky-Barkley Lakes Board


213 -4.23%




Madisonville-Hopkins Board


398 16.08%




Mayfield-Graves Board


246 31.30%




Murray Calloway County Board


267 -9.74%




Greater Owensboro Board

1049 981 6.93%




Paducah Board


588 0.00%




Pennyrile Board


300 11.00%




REGION TWO Central Kentucky Association


467 26.77%




Heart of Kentucky Association

1584 2119 -25.25% 125000



Old Kentucky Home Board


416 15.14%




REALTOR® Association of SKY

1355 1457 -7.00%




Russellville-Logan Board


132 -12.88%




Shelbyville Board


311 14.15%




South Central Kentucky Association


262 -10.31%




REGION THREE Greater Louisville Association

11063 11447 -3.35%




REGION FOUR Lexington Bluegrass Association

6759 6939 -2.59%




REGION FIVE Northern Kentucky Association

4195 4273 -1.83%




REGION SIX Ashland Area Board


651 -2.15%

Cave Run Association


162 0.00%

Cumberland Valley Board


497 -6.84%

Eastern Kentucky Association


Madison County Board Pioneer Trace Board Somerset-Lake Cumberland Board Total










418 -10.29% 115000




891 8.53%





151 21.19%





572 -13.64%




33832 34801 -2.78% 106500



* Statistics are unavailable for the following local associations: Cynthiana-Harrison Co., KY-Barkley Lakes (Oct, Nov & Dec), Shelbyville (Nov. & Dec.)

McDonald continued, “If any state could say it has held strong during the market downturn experienced nationwide, it would be Kentucky. We were, are and will continue to be a great place to own a home and hope more and more of our residents discover that fact.”


Community Profile

Henderson—life on the southern bank of the Ohio The historic city of Henderson, located on the southern bank of the beautiful Ohio River in western Kentucky, ranks as one of the state’s top three corn and soybean producers, as well as one of the leading coal producers. To get where it is today, you have to go back to where it all started in the late 1700s. The city was named for Colonel Richard Henderson, who originally purchased 17,000,000 acres of land from the Cherokee Indians, only to have the purchase voided by the Virginia legislature. In 1778, the Richard Henderson Company was granted 200,000 acres in recognition of the $50,000 paid by the company to the Indians in the Treaty of Watagua. Land in that grant is included in the present boundary of Henderson County. Prior to being founded in 1797, Henderson’s first settlement on the site was called Red Banks due to the reddish clay soil on the banks of the Ohio River. It was later incorporated as a town in 1810 and became a city in 1867. The first private school, Henderson Academy, was established in 1813. The first bank opened for business in 1818, and the first regularly established church, the Old Union Church, was founded in 1825. The first Henderson County Court House was erected in 1814, was replaced in 1842, and was rebuilt again in 1965. In the late 19th century, Henderson continued to thrive thanks to river commerce, tobacco and agriculture. At one time, Henderson, through undocumented claims, was the second-richest city per capita in the world. It was also said that shortly before World War I, that Henderson had more millionaires than any city in the world for its size. As a result of this wealth, many charming and elaborate homes were built in the early 1800s, many of which still stand today.  Today, the city is proud to boast that its founders wisely laid out the streets 100 feet wide and also set aside acreage for a public square and the first municipal park west of the Allegheny Mountains. One of the area’s most notable residents was John James Audubon who discovered the beauty, fertile soil, gentle hills and peace and quiet of is the area in 1810, when he moved with his wife and young son to Henderson.  The world-renowned artist and naturalist spent nine years in Henderson painting many exquisite life-sized pictures of birds and animals in their natural habitat. Audubon is remembered through the John James Audubon State Park, located on 692 acres on Henderson’s north side. The park includes the Audubon Museum, which houses many of


Audubon’s original watercolors, oils, engravings and personal memorabilia. The Nature Center features a wildlife observatory, which nurtures Audubon’s own love for nature and the great outdoors. The park also offers facilities for camping, hiking, fishing, swimming, golf and tennis.

In addition to Audubon State Park, Henderson has many unique outdoor areas for enthusiasts.

Audubon by John Syme, 1826

River Front, the city’s downtown area and named for its location, well, on the river front, includes the Audubon Mill Park as well as the popular water park fountain. The water park has two areas; one larger area contains forty-five jets shooting water as high as 15 feet, and the second play area has smaller jets approximately two feet in height which offers endless amusement for children. Green River State Forest, situated about five miles northeast of Henderson, compromises 1,106 acres of the Green River State Park. The park is open for the public for recreational uses such as hunting, fishing, or hiking. More than half of the park is situated at the bottoms of Henderson’s bluff toward the Ohio River, with almost 70 acres of swampland.

Within the city, there are nearly 10,000 acres of wetlands commonly referred to as the Sloughs. In the winter, more than 10,000 geese and ducks use the wetlands during their seasonal migrations. Hunters, fishermen, hikers, campers and nature lovers enjoy the area for its many kinds of wildlife, including turtles and coyotes. But the area is not only for outdoor enthusiasts. Henderson is also home to the Ellis Park thoroughbred race track, originally named Dade Park. Although Ellis Park, built in 1922, is located on the Indiana side of the Ohio River, by an oddity of history, the land is actually a part of Henderson County.

Also located in Henderson is the 1,000-seat Henderson Fine Arts Center. Situated lakeside, this unique setting hosts a wide variety of the performing arts such as music, dance, drama, and comedy. Within the walls are two art galleries that regularly display work of national recognition such as the Ohio Valley Art League’s Kentucky National Wildlife Exhibit and the Art of Recycling Exhibit.

In August 1994, Henderson hosted the Babe Ruth League’s Bambino World Series. This was the first time the city of Henderson had ever hosted a major sporting event. Although Park Field was the intended site, organizers found that it did not meet the BRL requirements. The city had to construct a larger and better-equipped stadium. After nearly two years of renovations, seating in Park Field was increased to 5,500, the playing field was resurfaced, and many other improvements were made. Thousands of fans packed into Park Field to watch the event with teams from all over the United States and the Virgin Islands. Two years later, the town decided to bring the Series back to Henderson. This time, the Henderson All-Star Team advanced to the National Championship game, which no other host team had accomplished. Unfortunately, Oakland, California won by an 8-4 score.

Each year, the city puts on the Big Rivers Arts and Crafts Festival, the Lions Club Tri-Fest, the W. C. Handy Blues & Barbeque Festival, named in honor of the blues legend, and the Bluegrass in Park Folklife music festival, one of the largest free Bluegrass festivals in the country with performers such as Alison Krauss, Ricky Skaggs and Glen Campbell.

Kentucky REALTOR® Charlie Collier of Cadiz on a trip to Alaska. His reading material of choice is, of course, the Kentucky REALTOR® magazine.

Take time to visit this area of the state and you will discover why the 28,000 residents of Henderson call this “gateway” to the South home.

If you travel to interesting parts of the world, take a copy of the Kentucky REALTOR® magazine with you and send us your photo for a chance to be featured in the magazine. Photos should be sent to


A Day in the Life of...

A local board president Molly Mattingly | Old Kentucky Home Board of REALTORS®




Steve Davis | REALTOR® Association of Southern Kentucky Louise Miller | Greater Louisville Association of REALTORS®

How many years have you been a REALTOR®? Molly: 8 Steve: 10 Louise: 29

What previous roles did you serve to get to where you are today? MM: I served on various committees over the years and recently completed the LeadershipKAR program. SD: I chaired the Habitat for Humanity committee and have since chaired or served on all the other committees at the local level. I also served as a local director and secretary/treasurer and then became president-elect. I also went through the LeadershipKAR program. LM: I began with committee work and then became a chair of several committees, including Grievance, Education and Community Service, to name a few. From there, I progressed to Board of Directors, Vice President, Secretary-Treasurer, President-Elect and eventually President. I also serve on KAR and NAR committees.

What made you want to serve at this level of your local association? MM: Being involved in your local association helps strengthen your working relationships with all REALTORS® within your board. I believe there comes a time for all of us to step up and serve on committees and leadership positions. It was time for me to do this and have really enjoyed it. SD: I felt it would benefit me as a person, my business and the association to volunteer for leadership positions which have an impact in our local community. LM: I find being involved at our association is educational and fulfilling. I am always interested in local, state and national issues. Also, I believe when you are involved and informed, it can only enhance your ability to be a competent REALTOR®. The other benefit is meeting so many great people along the way.


In a sentence or two, what is the biggest challenge you face at your association? MM: Losing membership yet still maintaining the same programs and benefits to our members has forced us as an association to be creative in ways of maintaining budgets without increasing costs. So far, we have successfully done so.   SD: The biggest challenge we have is operating at the same level as past years but on a smaller budget. LM: I think presently, one of our biggest challenges is membership. We are a strong board, with a competent staff. Participation has been great on our committees, but we always need to bring on new members to lead us into the future. We will stagnate otherwise.

What is the top goal you want to accomplish this year? MM: To strengthen our Affiliate membership program so that we can work together to make our industry stronger and more beneficial to our consumers. SD: I want our membership to experience the positive benefits of getting involved with our association, including, but not limited to, making more profit for their business! LM: It would be for us to increase membership. This alone will help with so many objectives in terms of our association, from volunteers, RPAC donations, budget balancing, new ideas, etc.

What would you say to other REALTORS® who want to take on a leadership position at a local association? MM: Don’t think you are not experienced enough. The best way to expand your knowledge with your local, state and national association is to get involved and the earlier in your career, the better. SD: There has never been a better time to get involved. Though our budget and membership have declined, our spirit and efforts have increased. We are more determined to meet or exceed our goals this year. LM: Get involved because it is a worthwhile experience and time well spent. You cannot help but become more educated and informed. Plus, the added bonus is all of the wonderful relationships you have the opportunity to cultivate that might never come about otherwise.

If you could scream one thing from the top of a mountain to all the members in your association, and they would hear what you had to say, what would that be? MM: Take advantage of everything your local, state and national association has to offer. Attend meetings, workshops, Convention and anything else you can possibly do. SD: Don’t push me off, I’ve only just begun. LM: Get involved. It comes back to you twofold. It enhances your ability to be a better REALTOR® because you actively become a part of a greater whole.

What have you learned from being in your position that you wouldn’t have learned otherwise? MM: This position pushed me into being involved on the state level. I had no idea how much I would benefit from attending KAR meetings and being on state committees and how much I would enjoy it. SD: It is important to listen, remain neutral and work efficiently each day. LM: I have formed many lasting relationships and learned so much about associations and the hard work they do every day. I also have a better understanding of how our local, state and national governments work to the benefit, and sometimes the detriment, of REALTORS® and consumers and the issues that affect them.

Do you plan to remain involved after your term ends? MM: I will remain a local director as past president of the board and will serve on committees. I will also continue to attend state meetings and remain actively involved on committees. In fact, I will be the chair of KAR’s membership services committee in 2013. SD: Yes, I will remain involved with a few committees. LM: I will continue to serve in some capacity as a committee member or wherever I am needed.

Outside of your career, what is your favorite pastime? MM: My husband and I have 4 very active children and we love following all of their activities and traveling with them. So outside of family activities, it would be reading and following the Kentucky Wildcats in every sport. We attend every possible UK football game that we can, both home and away. SD: Raising my kids. LM: I enjoy traveling (do we really get time off?), family time, reading and gardening. I also enjoy entertaining friends and being involved in some volunteer work in the community.

What is the best advice you have ever received? MM: To always follow the Golden Rule in every aspect of your life. SD: Try to learn as much about everything as you can AND always do the right thing. LM: Early in this profession, it was be honest in all ways. You never have to look over your shoulder if you act like a professional in all you do.


From the Helm

How we got this way and what can we take away from it all? You may think that title sounds a little familiar. That’s because I took it from Regis Philbin’s book. I received several books as Christmas gifts including Jacqueline Kennedy: Historic Conversations on Life with John F. Kennedy, Catherine the Great, and Regis’ book How I Got This Way. Of course, I started reading Regis’ book first. Regis writes about people who had an influence on his life in some way—mostly notable celebrities in entertainment, sports and business as well as some lesser known people who also had an influence in his life. At the end of each chapter he would write a couple paragraphs titled “What I Took Away From It All.” If one were to write a book about past and present leaders of KAR and NAR and their influence on the REALTOR® organization, there would be many people who have given us much to “Take Away From It All” and who helped influence “How We Got This Way.” Several of these people and their influence are mentioned below. Barney J. Treacy—He was the first president of the Kentucky Association of REALTORS® in 1923. Mr. Treacy was prominent in the civic, social and business life of Lexington and his father was a well-known horseman around the country. Being of Irish decent, his family came to America when his father was quite young. Time papers reported that his family eventually built a $50,000 house but that his father came to the city a poor boy who worked among horses until he knew the business and was one of the largest dealers in horses. It can only be assumed that his father instilled in him similiar traits that helped him along the way. Treacy, who worked in real estate and insurance around the turn of the 20th century, was likely a spectacular first president of KAR. What KAR Took Away from It All: An auspicious beginning for us. Carolyn Edwards—President of KAR in 2006, Carolyn led a group of Kentucky REALTOR® members to the Gulf Coast following Hurricane Katrina to work for a week helping hurricane

victims rebuild. She also started KAR’s Kentucky Disaster Relief Fund for members and local associations. What KAR Took Away from It All: Helping others in times of disaster is an important activity for KAR & REALTORS®. We care for our own members in times of need, and we help others who desperately need it. Richard Mendenhall—NAR president in 2001, he started the REALTOR® Relief Foundation after 9/11 to assist families of the victims. He built the foundation immediately and ensured there was very little red tape to help those in need. The foundation provided mortgage and rent assistance, temporary housing, etc. The foundation has since also provided assistance to victims of Hurricane Katrina and other natural disasters including those in Kentucky. What KAR Took Away from It All: Sometimes you just have to act and follow your best instincts in times of a crisis. Ann McDonald—KAR’s current president has been influential in expanding our reputation in the state house with frequent testimony on real estate issues. She has attended many committee hearings and testified on our members’ behalf on legislation that will improve seller financing options, protect individual property rights, contain rising housing costs and remove legal liability for all real estate licensees. Her personal relationship with many legislators and others in positions of influence, along with her natural charisma, has enabled us to open important doors to develop and strengthen our public policy outreach. What KAR Took Away from It All: Personal engagement with people, and the commitment to reach out, will create a positive, professional reputation. These are just a few of the KAR and NAR leaders who have influenced “How We Got This Way” as an organization responsive to the needs of members and the real estate industry. I have always believed the right president comes along at just the right time for an organization. In my experience, every president of the Association has contributed greatly to the growth and betterment of the Association. Through their personal commitment, along with their unique individual qualities and characteristics, the Kentucky Association of REALTORS® grew stronger with each presidency in our 90 years. What will future presidents be known for, and how will their contributions continue to shape our association? Time, and each future president’s unique talents, will tell.

Susan W. Helm is the Executive Vice President of the Kentucky Association of REALTORS® Barney J. Treacy’s office at 108 W. Short Street in Lexington, KY in 1921.




Quarterly publication of the Kentucky Association of REALTORS

Read more
Read more
Similar to
Popular now
Just for you