Designated Realtor® December 2018

DESIGNATED

REALTOR

®

ISSUE 6: December 2018

2018 ELECTION RECAP

NJREALTOR.COM

Online application management platform now open!

COE.NJREALTOR.COM

2018 Circle of Excellence Sales Award®

There are two ways to achieve the award. The Dollar & Unit Method calculates both quantity of transactions, as well as the dollar value of those transactions. The Strictly Unit Method only counts the quantity of transactions.

DOLLAR & UNIT:

$2.5 MILLION & 15 UNIT MINIMUM

STRICTLY UNIT:

30 UNITS

DOLLAR & UNIT:

$6.5 MILLION & 20 UNIT MINIMUM

STRICTLY UNIT:

70 UNITS

DOLLAR & UNIT:

$12 MILLION & 25 UNIT MINIMUM

STRICTLY UNIT:

90 UNITS

DOLLAR & UNIT:

$20 MILLION & 30 UNIT MINIMUM

STRICTLY UNIT:

125 UNITS

STRICTLY UNIT

DOLLAR & UNIT • Every closed transaction is worth 1 COE unit and the full dollar value the transaction closed for.

• Disclosed dual agents can count a transaction twice, as you earn for each side of a transaction.

• Rentals of one year or more are worth 1 COE unit and the gross value of the rental agreement.

• Rentals of less than one year are worth the gross value of the rental agreement and 1 COE unit for every 20 transactions.

• • • •

Every closed transaction is worth 1 COE unit.

Disclosed dual agents can count a transaction twice, as you earn for each side of the transaction.

Rentals of one year or more are worth 1 COE unit for every 5 transactions.

Rentals of less than 1 year are worth 1 COE unit for every 20 transactions.

COE.NJREALTOR.COM

I M P O R TA N T D AT E S

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JANUARY

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Triple Play Realtor® Convention & Trade Expo Atlantic City, N.J. realtorstripleplay.com NJ Realtors® Office Closed Christmas Day Holiday observed Code of Ethics Training Requirement Deadline njrealtorsace.com

NJ Realtors® Office Closed New Years’ Day observed NJ Realtors® Circle of Excellence Application Deadline coe.njrealtor.com NJ Realtors® Office Closed Martin Luther King Day observed

What’s Buzzing in Real Estate

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C2EX NAR publishes “Marijuana and Real Estate: A Commitment to Excellence (C2EX) was created by Budding Issue” Realtors® to help promote the knowledge and expertise In November, NAR published a report detailing of those in the real estate industry. To get started, take a the relationship between the real estate industry and self-assessment to measure how proficient you are in the new marijuana laws. Highlights from the report include areas of customer service and technology. The platform then information on addendums added to leases regarding creates a customized learning program for you and growing and smoking on properties, as well as recommends resources you can use to enhance the effect dispensaries have on property values. your skills. Click here for more.

Click here for more.

Realtors® are switching over to the .realestate domain “The .realestate domain is designed to help brokers and agents market themselves, their businesses, their listings and their wide array of expertise and services in creative, new ways,” said NAR to RISMedia. NAR’s goal is for the new domain to forge stronger connections between those involved in the real estate industry, from buyers and sellers to brokers and agents. The new domain is available exclusively for Realtors® with at least one active .realtor domain. The general public has access to the new .realestate domain as of Nov. 26.

Learn more here.

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Code of ethics training deadline is Dec. 31, 2018 In order to meet NAR’s specific criteria and learning objectives, Realtors® are required to complete ethics training in twoyear cycles. The current cycle began on Jan. 1, 2017 and thus the deadline is Dec. 31, 2018. Training may be completed in the classroom or online. Learn more here.

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NAR legal affairs strongly advises crafting a social media policy for your brokerage “Your social media policy should establish clear guidelines, prevent risks, and safeguard the reputation of your brokerage” said Charlie Y. Lee, NAR associate counsel. Read more here.

Designated REALTOR® | December 2018 | 1

2018 Election Recap

2018 ELECTION RECAP

BY BRUCE SHAPIRO

Andy Kim

Joe Lagana

Tom Malinowski

Robert Menendez

Mikie Sherrill

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n early November, voters in the Garden State and across the country voted for all 435 seats of the House of Representatives, one-third of the United States Senate, as well as numerous state and local offices. In New Jersey, all 12 House seats and one of two U.S. Senate seats were on the ballot, along with several special elections for State Legislature and county, local, and school board elections.

In the current 115th Congress, Republicans controlled both the House of Representatives and the U.S. Senate. The incoming 116th Congress, beginning in January, will see Democrats control the House of Representatives while Republicans retain control of the Senate.

Here in New Jersey, the House delegation during the 115th Congress was made up of seven Democrats and five Republicans. In the 116th Congress, there will be 11 Democrats and one Republican. Additionally, New Jersey saw two sitting members of the House of Representatives retire: U.S. Rep. Frank LoBiondo of the 2nd District and U.S. Rep. Rodney Frelinghuysen of the 11th District.

Replacing U.S. Rep. LoBiondo will be Sen. Jeff Van Drew while U.S. Rep. Frelinghuysen will be replaced by retired Navy pilot Mikie Sherrill. U.S. Rep. Leonard Lance was defeated for re-election by Tom Malinowski and U.S. Rep. Tom MacArthur was defeated for re-election by Andy Kim.

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Chris Smith

Britnee Timberlake

Jeff Van Drew

Anthony Verrelli

In the NJ Senate Election, incumbent Democrat Sen. Robert Menendez faced off against Republican Bob Hugin. Voters re-elected Sen. Menendez to a six-year term in the Senate.

Voters also elected several members of the State Legislature in special elections across New Jersey to fill unexpired terms. Newly elected members will serve in the remainder of the 218th session of the State Legislature until January 2020.

Among the newly elected members of the State Legislature, some of whom have been serving since being appointed to their respective seats, include Assemblyman Anthony Verrelli of the 15th District, Assemblywoman Britnee Timberlake of the 34th District, and Sen. Joe Lagana of the 38th District.

In addition to the statewide elections, voters elected numerous county and local officials, of which several Realtor®-backed candidates were elected to local office in Point Pleasant Beach, Metuchen, and Lambertville.

With the election now behind us, National Association of Realtors® and New Jersey Realtors® will be working with the new Congress when the 116th session begins in January, as well as with the current members, on various issues affecting real estate including the National Flood Insurance Program reauthorization. NAR and New Jersey Realtors® will continue to be a presence at all levels of government to advocate for the real estate industry, homeownership, and private property rights.

Prices, Interest Rates Rise in Q3 A

s fall began, New Jersey’s housing market continued to advance steadily in the third quarter of 2018, with prices and interest rates on the upswing. The average interest rate on a 30-year fixed-rate mortgage was 4.94 percent as of Nov. 15. The housing industry continues to accumulate excitement and buyer demand, but some economy observers believe 2018 could be near the end of the high point.

Adult Community Market Up 10.7 percent to $202,000, the median sales price in this market segment shifted, while the number of days on the market dropped 10 percent to 63 days. Closed sales were down 1.9 percent to 5,515 in September. New listings rose 0.3 percent to 7,780, year-to-date.

Going into the end of the year, prices and interest rates could continue to rise. However, the flat-lining of salaries and a home buying delay trend from the younger generation could work to further decline sales as we approach a typically slow selling season.

Total Market Overview In September, closed sales dropped just 0.2 percent for the year with 87,818 single-family properties, townhouses, condominiums and properties in adult communities sold year-to-date. The median sales price continued to rise in 2018, increasing 4.3 percent since this time last year to $293,000. New listings were also up 0.7 percent in September with 147,359 listed year-to-date.

Single Family Market The median sales price advanced in September up to $315,101, a 3.3 percent increase over last year. Closed sales remain fairly static, with 62,372 units sold. These properties are moving quickly, sitting for an average of just 64 days. New listings in September were up 0.2 percent to 106,376.

Townhouse-Condo Market With 18,419 year-to-date sales, this market segment is looking stable. The median sales price increased 3 percent to $257,500 in contrast to this same time last year. New listings were up 2.4 percent to 29,937. Listings are remaining on the market an average of 62 days, down 11.4 percent since the beginning of 2018.

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What Do You Have to Do if There is a Security Camera in the Home You Listed or are Showing?

BY BARRY S. GOODMAN, ESQ.

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he house you listed for sale or lease or are about to show has a security camera or other video or audio taping equipment. Do you have to disclose the existence of the recording devices to potential buyers or tenants?

Can the seller record conversations between buyers or tenants and their agents when they walk through the house? Can the landlord have the security camera system working after the tenant has taken occupancy?

This issue of homes having recording systems is becoming more prevalent as people are becoming more security conscious. It is therefore extremely important for you and the owner to know what can and cannot be done when there are security camera systems in the house.

In deciding how to handle the situation, it is important to distinguish not only potential buyers who are walking through the house and tenants who have moved into the house but also videotaping and taping conversations.

Disclosing Security Cameras to Potential Buyers Walking Through The House A seller who has a security camera system in the house likely will want to keep it on when potential buyers and buyer’s agents are walking through the house for security reasons. The question therefore arises whether or not the security system has to be disclosed to the buyer and the buyer’s agent.

The New Jersey Real Estate Commission informally has taken the position that the listing agent does not have a duty to disclose that there is a security system in the house. However if the listing agent is asked about a security system, of course, the listing agent must provide an honest response.

In addition, if the listing agent becomes a disclosed dual agent, the listing agent in all likelihood has a fiduciary duty Designated REALTOR® | December 2018 | 4

to the buyer to disclose that there is a security camera system that will be videotaping in the house. As a result, if there is any possibility that the listing agent will become a disclosed dual agent, the listing agent should discuss with the seller when the listing agent obtains informed consent to disclosed dual agency that the security system will have to be disclosed. In fact, it is recommended they discuss simply disclosing the use of the security camera system to all buyers as part of a marketing strategy because the security system will likely increase the value of the house.

Use Of Security Cameras When The Property Is Leased To Tenants Although the same rules would apply to potential tenants who are walking through the property, once a tenant moves into the property, there are vastly different privacy expectations that the tenant understandably would have.

Use by the landlord of a security camera system inside the house, and likely outside the house, after the tenant has moved in could violate the tenant’s privacy rights and subject the landlord to civil damages and even criminal charges. As a result, if there are security cameras on the property, they should be disabled and not used during the term of the tenancy, unless only the tenant has the use of the security system.

Of course, security cameras still can be maintained by the landlord in multi-family housing if they are in common areas, such as common hallways, the exterior of the building(s), entrance ways to the building(s), common laundry rooms or common parking lots or garages.

Tape Recording Conversations Of Buyers Or Tenants It is not uncommon for a buyer and a buyer’s agent to discuss the buyer’s interest in purchasing the house, including possibly how much the buyer would be willing to pay for the house, when they are walking through the

house. Similarly, a tenant and the tenant’s agent might discuss how much the tenant wants to rent a unit. The question when there is a security system in the house is whether the owner can tape record such conversations or any conversations.

Under the New Jersey Wiretapping and Electronic Surveillance Control Act, it is against the law for any person, including a seller or landlord, to tape record conversations of other people, except where one of the parties to the conversation consents to be tape recorded.

A violation of this Act would be a crime of the third degree and subject whoever tape recorded the conversation to civil penalties. Thus, a seller or landlord cannot tape record conversations of people walking through the house without the express consent of one of the parties. It therefore is strongly recommended that any tape recording devices be turned off so as not to have an issue in this regard.

presume that there may be recording devices in the house and hold all discussions about the house outside the house.

CONCLUSION Although there typically does not appear to be a duty to disclose to buyers and buyer’s agents that there is a security camera system in the house, it probably would be in the listing agent’s best interest and the best interest of the seller to disclose its existence and, indeed, to use it as a marketing tool. However, when the property is being rented, care should be taken to ensure that the security camera system is not improperly used by the landlord during the term of the tenancy. Finally, absent express consent from a buyer and/or buyer’s agent, neither the seller nor the listing agent should ever tape record their conversations.

It also is recommended that buyer’s agents advise buyers not to discuss anything related to the house while the buyer’s agent and the buyer are walking through the house. The buyer and buyer’s agent simply should

Join us at the

RPAC High Rollers’ Suite

WED. DEC 5 RM 308/309

During a long week of classes and events at the 2018 Triple Play Realtor® Convention & Trade Expo, treat yourself to a few hours of relaxation in Room 308/309 of the Atlantic City Convention Center.. For a minimum $250 investment pledge to RPAC, you’ll get all-day access to the RPAC High Rollers’ Suite, which includes:

•Deluxe Coffee Bar •Hot Lunch •Massages •Headshots •Psychic Readings •Manicures •Shoe Polishes & more!

Contributions to RPAC are not deductible for federal income tax purposes. Contributions are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amounts provided your contribution is within applicable contribution limits. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. You may refuse to contribute without reprisal. Unless otherwise required by applicable law, any request for the refund of a contribution must be made within two (2) business days of the date on which you authorize RPAC to charge you for said contribution. Your contribution is split between National RPAC and the State PAC in your state. Contact your State Association or PAC for information about the percentages of your contribution provided to National RPAC and to the State PAC. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116.

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