THE VOICE OF REAL ESTATE IN NORTH CAROLINA
VOL 101 NO 4 | NOVEMBER 2022
Who’s Your Coach? Building a Better Real Estate Business and Bottom Line
Plus + When There’s a Will, There’s Always a Way NC REALTORS® Legal Counsel retires after 26 years + Epic NC REALTORS® Celebrating our 2022 Award Honorees + Can a Bedroom Be a “Bedroom” If There’s No Closet? Get the answers to the Legal Hotline’s latest inquires
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November 2022 Features 13 When There's a Will, There's Always a Way
Will Martin, NC REALTORS® General Counsel, retires after 26 years with the association.
19 Legal Quiz : Can a Bedroom Be a “Bedroom” If There’s No Closet?
Get the answers to the Legal Hotline’s latest inquires.
23 Who’s Your Coach? Building a Better Bottom Line Through Real Estate Coaching
Think bigger and go beyond by hiring a real estate coach.
QUIZ 19 4 President's Letter 5 Inside NC REALTORS® • 2022 Election Winners • Leadership Academy Class of 2022 • REALTOR® of the Year, Hall of Fame, Rising Stars and all 2022 Annual Award Winners
TALK TO US
Have something to talk about? Sure you do—and we want to hear it! Send us your comments, ideas or success stories to email@example.com and you could be featured in the next Insight. ncrealtors.org • INSIGHT 3
Insight, Volume 101, Issue 4 President Wendy Harris, ABR®, AHWD, C2EX, CIPS, CRS, e-PRO®, GRI, PSA, SRES®, MRP, WHS
Treasurer Laurie Knudsen, C2EX, GRI
President-Elect Leigh Brown, ABR®, AHWD, C2EX, CIPS, CLHMS, CRS, e-PRO®, SFR®, SRES®
Immediate Past President Kelly Marks, ABR®, AHWD, CIPS, CRS, GRI
Regional Vice Presidents Region 1: Adam Upchurch, Topsail Island Region 2: Brooke Rudd-Gaglie, Oak Island Region 3: Bruce Gates, Goldsboro Region 4: Jon Fletcher, Chapel Hill Region 5: Ray Alexander, Greensboro Region 6: John McPherson, Winston-Salem Region 7: Carol Bradley, Monroe Region 8: Edward Baesel, Charlotte Region 8: Brenda Hayden, Charlotte Region 9: Renee Cooney, Franklin Region 10: Lewis Grubbs, Raleigh Region 10: Renee Smith, Cary At Large Representative: Kim Dawson, Durham Chief Executive Officer Andrea Bushnell, Esq., AHWD, CIPS, RCE Vice President of Communications & Marketing Mckenzie Allen, AHWD, C2EX Graphic Design & Production Manager Raquel Stubblefield, AHWD, C2EX Content Marketing Coordinator Aliyah Ross, C2EX Contributors Will Martin, Lee Nelson, John Wait For advertising information, visit ncrealtors.org/advertise or contact Keri Epps-Rashad at (336) 217-1049. INSIGHT (ISSN 24714127) (USPS 17170) is published four times a year in February, May, August and November by NC REALTORS®, 4511 Weybridge Lane, Greensboro, NC 27407. Periodicals Postage Prices paid at Greensboro, N.C. and additional mailing offices. POSTMASTER: Send address changes to INSIGHT, 4511 Weybridge Lane, Greensboro, NC 27407-7877. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Articles which appear in Insight are an informational service to members and consumers. Their contents are the opinions of the authors alone and do not necessarily represent those of NC REALTORS®.
At the beginning of this year, we were settling into our “new normal,” and now that the year is almost over, it has been so refreshing to connect in person! I had a wonderful time seeing your faces at our annual NC REALTORS® Convention and Expo in Cherokee. And so many new faces were present at our MIXer events this fall. It is always a good time when a group of epic NC REALTORS® is in a room. Speaking of epic, in this issue of Insight, we will highlight many of our epic NC REALTORS®, including our 2022 award honorees and a staff member who has helped keep members out of legal trouble for over 25 years—our General Counsel, Will Martin. After many years of hard work and dedication to NC REALTORS®, he is retiring. He has served us well, and we wish him the best. This issue also dives into real estate coaching, which is on the rise. In this market whirlwind, we can all use a little extra help. As I sign off as your president, I hope you feel confident to take on the future, no matter how the market turns. We were made for this moment, and uncertainty is no stranger to REALTORS®. I encourage you to continue to build bridges in our industry, fight for the property rights of your clients, seek to live sustainably and never forget your dedication to serving all with the highest professional standards. Wishing you all the best in 2023.
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4511 Weybridge Lane, Greensboro, NC 27407 Phone: (336) 294-1415 ncrealtors.org
Wendy Harris, 2022 NC REALTORS® President
2022 NC REALTORS® ELECTION WINNERS NAR Director – Medium Board Christina Asbury | ABR®, ALC, CRS, GRI, MRP, SFR® Jacksonville Board of REALTORS® President-Elect Tony Harrington | ABR®, CIPS, AHWD, C2EX, CLHMS, ALHS Cape Fear REALTORS® Issues Mobilization Committee Patrice Willetts | ABR®, GRI, RENE, SRS, SRES®, SFR® Cape Fear REALTORS® Finance & Budget Committee Randy Dockery | CRS Mountain Lakes Board of REALTORS® Madalyn Kunow High Point Regional Association of REALTORS® Tony Smith | ABR®, ABRM, CRS, GRI Canopy REALTOR® Association NAR Director – Small Board Chester Bartlett | ABR®, GRI, C2EX Carolina Smokies Association of REALTORS®
Region 3 Vice President Laurie Linder | ABR®, CRS, GRI, SRS Longleaf Pine REALTORS® Region 6 Vice President Paul McGill Winston-Salem Regional Association of REALTORS® Region 8 Vice President Aric Beals | GRI Canopy REALTOR® Association Region 9 Vice President David Noyes | C2EX, e-PRO® Hendersonville Board of REALTORS® Region 10 Vice President Leslie Williams | ABR®, AHWD, C2EX, CIPS, CRS, PSA, SFR, WHS Raleigh Regional Association of REALTORS®
NC REALTORS® WILLIAM C. BASS LEADERSHIP ACADEMY CLASS OF 2022 Jennifer Bartlett Carolina Smokies Association of REALTORS®
Tikola McCree Union County Association of REALTORS®
Hoi “Hannah” Chan Raleigh Regional Association of REALTORS®
Philip Misciagno Jacksonville Board of REALTORS®
Raymond Evans Jacksonville Board of REALTORS®
Ginger “Gigi” Robles Carteret County Association of REALTORS®
Kristie Ferguson Gaston Association of REALTORS®
Alison Sink Vannoy Winston-Salem Regional Association of REALTORS®
Antonio Jones Longleaf Pine REALTORS®
Susan Williams Mid Carolina Regional Association of REALTORS®
NC REALTORS ® WILLIAM C. BASS
LEADERSHIP ACADEMY The NC REALTORS® William C. Bass Leadership Academy identifies, inspires and mentors emerging leaders. This leadership development program is designed to guide each participant through their own self-discovery process and to teach the necessary skills to become a more positive influence within the community and the industry.
ncrealtors.org • INSIGHT 5
PARTNERS NC REALTORS®
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Thank you Annual Sponsors Diamond
Help is here for struggling homeowners. As a trusted agent in your community, help bring relief to homeowners experiencing pandemic-related hardship. The NC Homeowner Assistance Fund provides up to $40,000 in assistance to eligible North Carolina homeowners for mortgage reinstatement to catch up on late payments (first and second mortgages) or other housing-related costs due to a period of forbearance, delinquency or default. All approved funding will be paid directly to the participating servicer.
Help by spreading the word. Visit NCHomeownerAssistance.gov today to access the following resources: • Community Partner Marketing Toolkit
• Free Printed Promotional Materials
The NC Homeowner Assistance Fund is being supported, in whole or in part, by federal award number HAF0019 awarded to the State of North Carolina by the US Department of the Treasury.
ncrealtors.org • INSIGHT 7
2022 Award REALTOR
of the Year
Treasure Faircloth Winston-Salem Regional Association of REALTORS®
The REALTOR® of the Year award is given annually to an NC REALTOR® who has rendered the most outstanding service to the state association. NC REALTORS® created the REALTOR® of the Year award in 1950 and was the first association in the country to honor its members in this way. Since then, all 49 states and many local associations across the country have duplicated the award.
HALL of Fame The Hall of Fame award is a lifetime achievement award given to honor an NC REALTOR® who has contributed and continues to contribute outstanding service to
Sue Franks Brunswick County Association of REALTORS®
the real estate profession in the areas of leadership, development, environment and government at the local, state and national levels. These contributions have an enduring impact on the real estate profession.
8 INSIGHT • November 2022
Winners Each year, NC REALTORS® honors it's members with awards for service and achievement. We're proud to showcase our 2022 recipients who truly embody the association's core values and contribute to the success of this organization.
Committee Member of the Year
Ben Ball Community Service Award
Regional Service Award, Region 2
Cape Fear REALTORS®
Cape Fear REALTORS®
Greensboro Regional REALTORS® Association
Cape Fear REALTORS®
Regional Service Award, Region 4
Regional Service Award, Region 5
Regional Service Award, Region 6
Regional Service Award, Region 8
Canopy REALTOR® Association
Association of REALTORS®
Winston-Salem Regional Association of REALTORS®
ncrealtors.org • INSIGHT 9
Rising Stars Each year, NC REALTORS® local associations select a member who has been a REALTOR® for five years or less, has provided exemplary service to their local board and exhibits strong leadership potential. We look forward to seeing where our 2022 rising stars take us next.
Winston-Salem Regional Association of REALTORS®
Cape Fear REALTORS®
Canopy REALTOR® Association
Orange Chatham Association of REALTORS®
Brunswick County Association of REALTORS®
Johnston County Association of REALTORS®
Greensboro Regional REALTORS® Association
Durham Regional Association of REALTORS®
Spencer (Gabby) Murillo
Coastal Plains Association of REALTORS®
Catawba Valley Association of REALTORS®
Raleigh Regional Association of REALTORS®
10 INSIGHT • November 2022
2022 Goal | $1,148,000 In 2021, we raised $1,147,270.
WHAT DOES NC REALTORS® PAC DO? NC REALTORS® PAC is North Carolina’s #1 state Political Action Committee (PAC)! Your PAC allows investors to pool their resources to fund candidates who support our business.
WHO DO WE SUPPORT? NC REALTORS® PAC backs candidates who promote homeownership, property owners’ rights and the real estate industry. We are a non-partisan PAC so we support candidates based solely on their stance on REALTOR® issues, not their political party affiliation.
WHO MAKES FUNDING DECISIONS? MEMBERS DO! FEDERAL LEVEL: RPAC DISBURSEMENT TRUSTEES A team of trustees, who are REALTORS® from across the country, choose REALTOR® friendly candidates in Congressional races across the nation. STATE LEVEL: NC REALTORS® PAC TRUSTEES 29 Trustees who are NC REALTORS® from across the state come together to make funding decisions on NC state level races. LOCAL LEVEL: LOCAL BOARDS Members of local boards use their share of funds to support candidates for local offices like Mayor, City Council, School Board and others.
WHO GETS THE MONEY? Your PAC investment is split between the local, state and federal levels to protect you and your business at all levels of government.
WHAT’S IN IT FOR ME? NC REALTORS® PAC is constantly fighting to protect you and your business. Even when other issues dominate the headlines, your team is working behind the scenes to protect and promote real estate. NC REALTORS® PAC and your Government Affairs team:
Successfully Lobbied for funding to secure $180 million for the Workforce Housing Loan Program
Fought TO END THE NC EVICTION MORATORIUM protecting NC REALTORS® property managers and their landlord clients
Successfully PASSED legislation to ensure roads intended for DOT adoption are taken over by them in a timely manner
WHAT’S THE BOTTOM LINE? NC REALTORS® PAC efforts pay you back every day. NC REALTORS® PAC has worked to defeat a 8.05% Sales Tax on Services, on the Sale of Property Tax and a $150 increase in Professional Fees. How much money do you save from these NC REALTORS® PAC wins?
Estimated Annual Commission
$55,000.00 Your savings
Sales Tax on Services.........................................
Real Estate Transfer Tax....................................
Total annual savings............................................
The Homeowners Alliance represents your interests in the North Carolina General Assembly. From insurance to taxes, your representatives make decisions that directly impact your wallet. That’s why the NC REALTORS® started the Homeowners Alliance. By joining, you can stay up-to-date on some of the most important issues for homeowners. We’ll never charge you for membership, and we’ll never tell you who to vote for.
3 Ways to Join the Alliance from Your Phone
ALLIANCE The ONE Group Fighting for Homeowners at the NC General Assembly
LIKE the NC Homeowners Alliance on Facebook
SIGN UP by typing “NC Homeowners Alliance” into your browser
TEXT “JOIN” to 919.813.2660
Connecting with your TECH SUPPORT TEAM just got easier On the go? Take us with you! Download the mobile app. Search “Tech Helpline”.
Take advantage of your member benefit! Based in the U.S., friendly Tech Helpline analysts can help you resolve problems with your computers, tablets, printers, scanners, smartphones, and more — all at no additional cost to you! With no limit to the number of calls you can make, this member benefit included in your dues can save you hundreds each year.
12 INSIGHT • November 2022
When there’s a there’s always a way
Will Martin retires after 26 years with NC REALTORS® BY RAQUEL STUBBLEFIELD, NC REALTORS® GRAPHIC DESIGN & PRODUCTION MANAGER As a young child, Will Martin—NC REALTORS® General Counsel––wasn’t sure what he wanted to be when he grew up, but he specifically remembers not wanting to be a lawyer since that was what his father was. “When I got a little older, I remember fantasizing about being a famous writer,” Martin states. Since then, he has become a writer of sorts, but instead of writing the great American novel, Martin authored many real estate contract forms and Legal Q&As used by NC REALTORS® today. Early Legal Career When Martin was 26 years old, he asked Celie—his now wife of 39 years—to marry him. When she said “yes,” Martin realized he needed to figure out a way to make a decent living quickly. Becoming a lawyer was the best option he wanted to pursue. Martin attended Wake Forest University School of Law, where he graduated cum laude and received a Juris Doctor degree in 1985. Martin began practicing law the same year as an associate of Martin & Van Hoy in Mocksville, N.C. There, he engaged in the general practice of law, including general civil and criminal litigation, estate planning, family law, personal injury law, municipal law, commercial law and real property transactions. Three years later, Martin became a partner at Martin & Van Hoy. In 1989, Martin joined the Winston-Salem firm of Craige, Brawley, Liipfert, Walker and Searcy and later became a partner in 1993. This practice concentrated in the area of business law, including the organization of for-profit, non-profit and professional
Martin's NC REALTORS® staff headshot from 2001.
Attorneys at Martin & Gifford, PLLC. From left to right: Bill Gifford, Will Martin and John Wait.
corporations, limited liability companies, general and limited partnerships and acquisitions and sales of businesses. Other transactional work included operation, financing, merger and dissolution of business entities. Martin also had a significant real estate and estate planning practice. Martin & Gifford, PLLC Martin has been a manager at Martin & Gifford, PLLC in Winston-Salem, N.C. since its inception. “In early 2005, Will suggested that the two of us start a law firm that would focus on representing the state association and some local boards, along with interested firms and brokers across the state,” states Bill Gifford, attorney at Martin & Gifford, PLLC. “Saying ‘yes’ to that suggestion was the best professional decision I ever made!” Over the last 17 years, Martin taught Gifford about real estate license law, the North Carolina Real Estate Commission’s rules, the Code of Ethics and everything else related to real estate brokerage in North Carolina. “Will’s knowledge, work ethic, integrity and friendship have made him the ideal law partner. It is impossible to express how much John, Adam and I will miss him,” adds Gifford. Additionally, Martin, Gifford and other attorneys from the firm have given presentations across the state at local real estate associations, real estate brokerage firms and other groups on standard real estate forms, updates on the law and many other topics of interest to the real estate brokerage community. He's also assisted local associations and firms across the state by providing specialized risk management advice and, in some cases, representing firms and agents in civil litigation and in defense of complaints pending before the North Carolina Real Estate Commission. 14 INSIGHT • November 2022
NC REALTORS® Achievements and Writings Although soft-spoken and mainly behind the scenes, Martin has been an integral part of NC REALTORS® since coming on board as General Counsel in 1996. Martin recalls first suggesting the idea of a due diligence contract. He remembers creating the first draft of what became “Alternative 2” in 2004, which later morphed into the due diligence contract in 2011. “I will miss working on the forms in the NC REALTORS® forms library,” Martins says. “I enjoyed developing and maintaining forms used in countless transactions across the state every year.” Additionally, he wrote hundreds of Q&As and other articles for NC REALTORS®. “I spent a lot of time and effort in my writings, trying to make them as clear as possible. It’s not easy trying to write something that balances the twin goals of legal accuracy and the education of a non-lawyer audience on a legal topic.” Lou Jewell, Broker/Owner at Land Pro Real Estate Inc., comments that he has always admired Martin’s contribution to the real estate industry, the Commission and the Association, especially in his Q&A series. NC REALTORS® Leadership and Committee Contributions In addition to his writings, Martin advised NC REALTORS® leadership and staff on a wide range of legal matters and advised a number of NC REALTORS® committees on professional standards, forms and risk management issues. He's also handled a large number of inquiries from individual members and local associations on legal issues affecting the practice of real estate brokerage and association administration. These subjects included contracts, agency,
Martin teaching a Property Management Division class at the 2014 NC REALTORS® Convention & Expo.
real estate licensing, landlord/tenant and fair housing laws, Real Estate Settlement Procedures Act (RESPA) compliance, Multiple Listing Service (MLS) issues and ethics and arbitration proceedings. “I had the privilege of working alongside Will for over a decade as a member of the Joint Forms Task Force between the North Carolina Bar Association Real Property Section and NC REALTORS®,” states Bob Ramseur, Partner at Ragsdale Liggett PLLC in Raleigh. “He is deliberate and thoughtful, asks tough questions, challenges his peers and never advocates a position without thinking through it thoroughly,” Ramseur explains. Kim Dawson, Broker at Allen Tate Realty and 2016 NC REALTORS® President, had the honor of working Martin for over 12 years on the NC REALTORS® Forms Committee. “Will was an integral part of support and council for leadership,” says Dawson. Tom Gale—a REALTOR® at Coldwell Banker Sea Coast Advantage and also a member of the NC REALTORS® Forms Committee—describes Martin as “one in a million.” “Will is a walking encyclopedia of knowledge on NC real estate laws and of the history of our forms,” says Gale. “He was always thoughtful, deliberate, level-headed and kind in reviewing every question or recommendation REALTOR® members had. He has a gift for quickly analyzing the
unintended consequences of recommendations and a gift for crafting the forms language.” Harriette Doggett, Vice President of Sales and Brokerin-Charge at Midtown Office at Fonville Morisey Realty, further supports Gale’s comments by saying that Martin was a “wealth of knowledge” when it came to the real estate industry. Doggett and Martin worked together on the NC REALTORS® Professional Standards Committee. “We could always count on Will to keep us up to date with any Code of Ethics changes. He always made difficult interpretations easier for us to understand,” explains Doggett. After the loss of Garth Dunklin in January 2021, Martin stepped up and accepted the additional task of serving as Chair of the NC REALTORS® REALTOR® Commercial Alliance (RCA). According to F. Spruill Thompson, Senior Vice President at Cape Fear Commercial, both Dunklin and Martin are responsible for all of the good that has occurred with the North Carolina commercial REALTORS® forms. Although Dunklin was front and center on this committee, Martin was the background driving force for approving Dunklin’s recommendations. “Will has been the reigning authority behind the scenes for many years. He preferred to remain out of the spotlight, but we knew his brilliance was leading our decisions,” says Thompson. ncrealtors.org • INSIGHT 15
Martin, age 47, poses in his cycling attire before participating in a 1,200 kilometer cycling event known as “Paris-Brest-Paris” in France in August 2003.
Martin participates in the golf tournament during the 2003 NC REALTORS® Legislative Shootout.
Lewis Grubbs, Broker-in-Charge at Coldwell Banker Advantage, has enjoyed the great relationship with Martin since becoming a member of the NC REALTORS® Residential Forms Committee. He describes Martin as “a person who was always accessible and willing to answer questions related to both forms and contracts.”
Retirement After 26 years as NC REALTORS® General Counsel, Martin will retire in December 2022. He emphasized that he will miss the interaction with NC REALTORS® staff and leaders, the members of various NC REALTORS® committees and the staff at the North Carolina Real Estate Commission. “NC REALTORS® has a great, dedicated staff. I’ve really enjoyed working with them,” says Martin. “I’ve always tended to be somewhat solitary in the way I work, so I learned a lot from the association’s staff about how important it is to communicate and collaborate effectively.” Martin also accentuated how he was truly amazed at the amount of time NC REALTORS® volunteer leaders and committee members freely give to the association and the real estate brokerage industry. When asked what are three things on his retirement bucket list, Martin replied that he wants to cycle from coast to coast, see the Cardinals play at Busch Stadium in St. Louis and go ice fishing. “Not many know about Will the athlete!” expresses Dawson. “I saw that side of Will during an NC REALTORS® Convention in Asheville when we did white water rafting on the Broad River. His lead kept us afloat, and we were the only raft that did not flip over, hit rocks or bottom out.” In addition, Martin looks forward to riding his bicycle several days a week, playing golf, doing yard work and reading more books. Martin and his wife, Celie, can’t wait to travel more. They’ve completed several cycling trips in Europe and the western part of the United States already, but are eager to add more adventures to their lives.
The NC REALTORS® Legal Hotline Many members will remember Martin as being one of the attorneys who fielded numerous calls and emails through the NC REALTORS® Legal Hotline. Through this member benefit, NC REALTORS® find quick resolutions to their legal questions. Kajal Patel, a Broker/REALTOR® at Open Doors Realty, LLC, remembers an incident when she had many questions about a situation. “Will was great! I had called him so many times, and he was very nice and patiently explained everything.” Cindy Mayberry, Broker-in-Charge at Rose & Womble Realty, was very familiar with Martin. She, like many other members, used the NC REALTORS® Legal Hotline time after time. “My goal when sending Will an email with a legally challenging tone was always to stump him! For the years of my attempts, his absolute knowledge and expertise left me losing the stumping battle,” laughs Mayberry. In the words of Karen Allred, Broker/Owner at Allred & Company REALTORS® LLC, Martin has been there for many REALTORS® when they needed guidance through their real estate career. After tens of thousands of Legal Hotline calls and emails, Martin appreciates learning to be a more patient person and a better listener. “I will miss talking with REALTORS® on the Legal Hotline,” he says. “Just when I think the person on the other end of the line is telling me a story I’ve heard a thousand times, they throw in an unusual fact that changes everything. Working the Legal Hotline has taught me that I have to be able to look at situations in a new light. It kept me on my toes!”
16 INSIGHT • November 2022
Farewells & Good Wishes “Happy trails, Will!” – Lou Jewell, Broker/Owner at Land Pro Real Estate, Inc.
“I hope that Will enjoys his retirement and can forget about leased oil tanks, bathroom mirrors and refundable due diligence fees. I hope that his retirement will forever be ‘performing the function for which it was intended’.” – Bob Ramseur, Partner at Ragsdale Liggett PLLC
“Will certainly earned his retirement. He did a great job in protecting our members and our clients and is truly one of the unsung heroes of NC REALTORS®.” – Tom Gale, REALTOR® at Coldwell Banker Sea Coast Advantage
“Will, you certainly deserve a wonderful retirement. I wish you much happiness in your retirement. There’s some huge ‘shoes to fill’ for our NC REALTORS® General Counsel. Thanks so much for your service over the years!” – Harriette Doggett, Vice President of Sales and Broker-in-Charge at Midtown Office at Fonville Morisey Realty
“Only the best wishes for you, my friend! May your seas be smooth and your sunsets, beautiful! Enjoy your retirement, you have earned it!” – Lewis Grubbs, Broker-in-Charge at Coldwell Banker Advantage
“I really appreciate all your help. May you have a long, happy and fulfilling retirement!” – Kajal Patel, Broker/REALTOR® at Open Doors Realty, LLC
“May this next season of life be filled with relaxation, laughter, love and never another thought of Due Diligence, HOA issues, Fuel Tanks, Multiple Offers or Material Facts. Thank you, Forms Guy. You will be missed.” – Karen Dietz, Technology Trainer at Triad MLS
“Obviously, I wish you all the best. With all of your interests (travel, cycling, golf, your garden, writing, law), I know that you will truly enjoy this next phase of your life.” – Bill Gifford, Attorney at Martin & Gifford, PLLC
"Will, I truly hope you will be happy in your retirement. Your clear and deep thinking will be missed. Thank you for all of your help!" – F. Spruill Thompson, Senior Vice President at Cape Fear Commercial
“Will, enjoy yourself, your family and the days ahead that are planned with only what YOU want to do. The only people you will have to answer to now are your family!” – Karen Allred, Broker/Owner at Allred & Company REALTORS® LLC
“Thank you, Will, for your support over the years. Wishing you the best in your new endeavors!” – Cindy Mayberry, Broker-in-Charge at Rose & Womble Realty
“Wishing you great adventures ahead. Enjoy!” – Kim Dawson, Broker at Allen Tate Realty and 2016 NC REALTORS® President
ncrealtors.org • INSIGHT 17
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QUIZ BY JOHN WAIT, GENERAL COUNSEL
These questions are based on weekly Q&As published in the REALTOR® Rundown between April 2022 and August 2022.
1. 2. 3. 4. 5.
If the buyer is seeking an FHA or VA loan, are Additional Earnest Money Deposits refundable if the property doesn’t appraise and the buyer chooses to terminate? Yes or no? Can the seller refuse to permit access to their property if the buyer has failed to timely deliver the Due Diligence Fee? Yes or no? Can the buyer withdraw an offer if the seller has signed the contract, but the listing agent has not yet communicated the seller’s signing to the buyer? Yes or no?
6. 7. 8. 9.
Can I recommend an inspector’s walk and talk service? Yes or no? Is the seller’s home gym a fixture that should convey? Yes or no? May the seller remove the contents of a fuel tank after going under contract? Yes or no? Are listing agents required to assist their sellers in completing the Residential Property and Owners’ Association Disclosure Statement (the “RPOADS”)? Yes or no?
Do I have to report that my listing is under contract to the MLS even if the Due Diligence Fee has not been paid? Yes or no?
Can a bedroom be a “bedroom” if there’s no closet? Yes or no?
HOW DID YOU DO? Turn the page to discover the answers.
Does the seller have to deliver a key to the buyer at Closing if the seller is remaining in possession under Form 2A8-T? Yes or no?
ncrealtors.org • INSIGHT 19
legal QUIZ Answers The definition of “Earnest Money Deposit” in 1. Yes. Form 2-T includes any “Additional Earnest Money Deposits.” Therefore, if the property doesn’t appraise, and the buyer chooses to terminate, then any Additional Earnest Money should be refunded to the buyer, even if the termination occurs outside the Due Diligence Period. Weekly Q&A dated 5-12-22. The Offer to Purchase and Contract (Form 2-T) 2. No. is effective on the “date that: (1) the last one of Buyer and Seller has signed or initialed this offer or the final counteroffer, if any, and (2) such signing or initialing is communicated to the party making the offer or counteroffer, as the case may be.” Once the contract is effective, the buyer has the right to conduct inspections until closing, even if monies due under the contract have not yet been delivered. If the buyer fails to timely deliver the Due Diligence Fee, the seller should make a written demand, which can be made with Form 355. If the Due Diligence Fee is not then paid within one banking day, the seller may terminate. Weekly Q&A dated 6-16-22. As stated in answer #2, Form 2-T does not become 3. Yes. effective until the last party’s signing is communicated to the other party. In this case, the seller’s signing was not communicated to the buyer prior to the withdrawal. A buyer has the right to withdraw their offer at any time prior to acceptance. Weekly Q&A dated 4-21-22. As stated in answer #2, the Effective Date in 4. Yes. Form 2-T is not dependent on whether the buyer has timely paid any monies due. Once the contract is effective, the change should timely be reported to the MLS. Weekly Q&A 4-28-22 Agents must be honest, truthful, and accurate in 5. Yes. their advertising and use common sense and exercise reasonable judgment when determining whether a room is, for listing purposes, a bedroom. This includes examining whether the number of bedrooms advertised matches the septic permit (if applicable). The absence of a closet is not a determining factor. Weekly Q&A dated 5-26-22. is not advisable. The North Carolina Attorney 6. ItGeneral has issued an advisory letter concerning “walk and talk” services. The letter states that depending on how many systems the inspector is looking at, a walk and talk service may violate an inspector’s statutory duty to provide a written report. The North Carolina Real Estate Commission expects that brokers will not recommend services they either know or should know are being offered in violation of state law. The Commission will evaluate each case individually, however, the advisory letter is a significant red flag that walk and talk services may not be legal. Weekly Q&A dated 7-14-22. 20 INSIGHT • November 2022
If the home gym is attached to the property, 7. Yes. then it should convey as a fixture. “Fixture” is not defined in Form 2-T and therefore state law controls. North Carolina uses the Total Circumstances Test to determine whether an attachment is a fixture and therefore part of the land. The test examines four factors: (1) the intention of the person installing the attachment; (2) the permanent or temporary nature of the attachment; (3) the way the property was adapted to accommodate the attachment; and (4) the relationship of the person installing the attachment. Weekly Q&A dated 8-25-22. Under revised Form 2-T, the seller can use any fuel 8. No. in a tank through Settlement, but the seller cannot remove the fuel or resell it. If there is a significant amount of fuel in the tank at the time of an offer, the seller should take that into account in determining an acceptable sales price since all fuel remaining in the tank at Settlement will be included in the sale as part of the purchase price (whether the tank is owned or leased). In addition, the seller should be advised to consult with their fuel provider to discuss the manner in which the tank will be refilled between the dates of contract and closing, including the possible discontinuation of any periodic refilling. Weekly Q&A dated 6-30-22. A real estate broker acting as an agent in a 9. Yes. residential real estate transaction has the duty to inform each of their clients of their obligation under the Residential Property Disclosure Act. Section 47E8 of the Act states that if the broker performs this duty, the broker will not be responsible for the client’s refusal to complete the disclosures required by the Act. Weekly Q&A dated 5-5-22. The Seller Possession after Closing Agreement 10. Yes. (Form 2A8-T) was amended to state that the buyer has the right to access the property in the case of an emergency. The seller must provide an entry key to the property at closing for this purpose. The seller may retain other means of access to the property until the end of their right of possession, at which point they must turn over all access to the buyer. Weekly Q&A dated 8-4-22.
STUDY HARD If you’re not doing so already, be sure to read the Q&As that appear in the REALTOR® Rundown every Monday. It’ll help you on the next quiz!
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Property Management Division WHY YOU SHOULD JOIN
Navigating The Pandemic We know your life and your profession have been impacted by COVID-19. Property managers are on the front lines, keeping our businesses clean and safe, and working with tenants on rent solutions that will keep communities intact. Times are challenging, and we’re here to help. NC REALTORS® PMD provides advocacy, education and tools to support North Carolina’s professional property managers during this time of uncertainty.
+ PMD Legal Handbook + Interactive Webinars & Training + Legislative Participation + Legal & Regulatory Updates
22 INSIGHT • November 2022
How to Join Any member of NC REALTORS® may join PMD. Visit ncrealtors.org/PMD or contact Amy Kemp at firstname.lastname@example.org for more information on PMD.
Who’s Your Coach?
Building a Better Real Estate Business and Bottom Line
BY LEE NELSON
When her career as a REALTOR® felt endless and overwhelming, Kate Carlton hired a coach. “You can never turn off your computer or phone to better your business,” says Carlton of Carlton Realty Co. at Keller Williams Legacy in Raleigh. “But coaching provides structure and guidance.” She serves as vice president of the Keller Williams Young Professionals in the Triangle area and was honored in 2021 by REALTOR® Magazine as a Top 30 Under 30 rising star in real estate. A study earlier this year showed a wide adoption of coaching among millennials.
According to findings by the International Coaching Federation (ICF) 2022 Global Consumer Awareness Student, 81 percent of respondents in the millennial age group expressed awareness of coaching. Plus, millennials also were the generation with the most percentage (47%) that had engaged with a coach. The ICF also shares that the typical coaching client is between 35 – 44 years old (37%) and are predominantly female (57%). Coaching comes in many forms, and REALTORS® seek out coaches for a myriad of ncrealtors.org • INSIGHT 23
reasons. Those searching for a coach can find someone to help them with any issue, subject or niche they desire. A coach can help their clients identify those obstacles, guide them to focus on solutions and then build on their strengths and talents. They can also steer people away from bad habits that interfere with a happy life and successful career. People can choose many types of coaches that deal with life, business, leadership, personal development, wellness, relationship, personality, behavioral, empowerment and success. Some agencies offer their own coaching opportunities, such as Keller Williams MAPS Coaching. When Carlton started out in real estate, her original coach at Keller Williams made things seem so much easier with simplified actions. “My goal was 36 units that year. We sat down and broke it down to three a month,” she states. “It’s a world of difference breaking it down and learning how to take the steps Kate Carlton toward the goals.” 24 INSIGHT • November 2022
When to Hire a Coach When Adam Upchurch started in the real estate business in 2011, he did not have a coach. “I started with a moderately-sized firm, but as the newest member of a three-person team,” says Upchurch, owner of Marvel Real Estate in Wilmington. Upchurch also serves as president of the Topsail Island Adam Upchurch Association of REALTORS®. “There essentially was no training and no structure in place. I had coaching in my previous profession working as a mortgage loan officer for eight years.” When he did begin working with a coach, Upchurch was resistant to change, specifically altering what he felt was the most proficient way to manage his time. Then, he realized that the successful people around him were still listening and meeting with coaches. What he found by accepting coaching was his ability to define a schedule while allowing flexibility to modify
components to increase efficiency. He learned to embrace a different mindset. “You need to become fearless. Once you can operate with total confidence in your abilities, everything becomes easier,” he adds. Upchurch encourages other REALTORS® to find a mentor or coach and get involved on a local level to meet people doing what they do. He believes that each individual needs to figure out if they need a coach, especially at different stages in their career. “You have to be willing to be vulnerable to allow yourself to grow,” Upchurch remarks. “If there is a mental hurdle and it’s something you don’t feel you can overcome on your own, then it’s probably time to hire a coach.” Why Coaching is Important “The real estate industry is constantly changing, as well as the economy,” states Karen Cynowa, broker/owner at Karen T Cynowa brokered by EXP Realty in Charlotte. “It requires relativity and resilience. Someone might be good at their craft but don’t have the overall strategy,” she adds.
She also works as a business development coach for REALTORS®. She got into the coaching and training world for Fortune 500 companies in her former job. “But the small businesses are where my heart lies. I see the vision. REALTORS® are all small businesses, and it doesn’t matter what umbrella Karen Cynowa they are under,” she says. She witnesses agents being fearful. Some can have all the degrees in the world, but they don’t have the experience, especially the young REALTORS®. “They have fear there are no homes to buy. But we have all kinds of solutions for that,” she says of coaches. “Coaches are constantly on top of this. We have to teach them how to fish. Sometimes, with my expertise, I can direct them on the shortcuts that help them.” Cynowa likes to encourage her coaching clients to think bigger. She likes to work with people that want to go beyond just knowing the basics. ncrealtors.org • INSIGHT 25
A coach can help their clients identify obstacles, guide them to focus on solutions and then build on their strengths and talents. They can also steer people away from bad habits that interfere with a happy life and successful career.
“Power is knowledge. As REALTORS®, we are here to service our clients, not here to do a transaction. We have to get into that mindset. We have to be a true entrepreneur and professional,” Cynowa states. “Being in real estate, you don’t have a boss,” says Carlton. “A big thing in real estate is accountability. No one is telling you to be at the office at 8 a.m. A coach keeps you on task and accountable to what you say you are going to do,” she adds. For Carlton, she has gained courage from her coach to spread her wings into new areas. “I’ve changed the frequency of my social media postings and tried new things such as Instagram Reels and TikTok,” she says. Being on camera was not something she liked to do. “But for me, I got out of my comfort zone. Social media is a big part of my business. It will boost your posts getting over that fear of being uncomfortable,” Carlton shares. “It’s all about practice, and it becomes more natural to be on video now.” Cost of Coaching “Some real estate firms offer free coaching. But for those who want to investigate hiring their own coaches, the average runs $125 – $150 an hour,” Cynowa adds. Some group coaching is available that can help those who want to try it out and not spend a lot of money at first. But she warns that the group coaching Zoom calls can last a long time, and they can be overwhelming. “So many of these people seem like they are crushing it,” she says. “You might feel intimidated on those group calls and too afraid to bring up your issues.” For most, Cynowa believes individual coaches are critical. But those coaches have to be suited to each individual because everybody is unique. Carlton knows that when people, especially people just beginning in the business, view that upfront cost to get a coach, it seems like too much. “But if it’s a good coach, they will really help you move along and make that money quadruple back,” she adds. “They might look good on paper, but interview multiple coaches before settling for one.” 26 INSIGHT • November 2022
The Length of Time with a Coach “As long as you are moving forward, then keep going with that coach,” Cynowa comments. That main coach may encourage you to get another coach that specifies in other situations like technology or even relationships. “Sometimes, we get calls from our clients, and they are a mess,” she says. It could be a divorce, a physical ailment or something else putting chaos in their lives. “We aren’t miracle workers. They may need to seek out help through a doctor, marriage counselor or a life coach,” Cynowa says. Carlton doesn’t believe anyone should stop having a coach. “You think about the greatest basketball player, Michael Jordan. He had a coach. No matter how great you are, you always have something to learn,” she states. A good coach takes the time to assess what your individual needs might be. “Based on that, together you will formulate a plan and define goals along a timeline,” Upchurch remarks. “Your coach will monitor your progress and determine if you become self-sufficient or need ongoing support to reach your full potential.” What to Expect from a Coach Upchurch believes the biggest thing you should experience with a coach is professionalism. “That individual is willing to invest their time into bettering you and your business. Your commitment level can compliment or impede your level of success,” he says. “Your coach can only be effective if you are able to embrace the suggestions and guidance they put forth.” For Carlton, she expects her coach to care about her business the way she cares about it. “I have had coaches from week to week forget what we were talking about. That’s frustrating,” she adds. “I want someone to remember what’s important to me and care about me while holding me accountable and pushing me along.”
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Appraisal Section WHY YOU SHOULD JOIN
Grab a Seat at the Table Are you a North Carolina REALTOR® who wants to make a difference when it comes to appraisal issues? Are you a North Carolina REALTOR® who is also a licensed appraiser? Joining the NC REALTORS® Appraisal Section advances your professional career, connects you with other REALTOR®-appraisers in the state, and gives you a seat at the table when important policy decisions are being made. Join us and help advocate on appraisal issues and promote the appraisal profession to fellow North Carolina REALTOR® members, elected and appointed public officials, the users of appraisal services, and the general public.
+ Participation in Advocacy Efforts, including 2 seats on the NC REALTORS® Legislative Committee + Discounts on Continuing Education + Exclusive Communications & Updates + Statewide Professional Networking & Referrals
How to Join Visit ncrealtors.org/appraisal-section or contact Denise Daly at email@example.com.
ncrealtors.org • INSIGHT 27
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