Future

OCTOBER 2016THE VOICE FOR REAL ESTATE IN ILLINOIS

www.illinoisrealtors.org THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

ILLINOIS REALTORS®’ NEXT 100 YEARS:

Celebrating

our Past;LOOKIN

G FUTURE

TO THE

Introducing 2017 President

DOUG CARPENTER

BUILDING GLOBAL CONNECTIONS with Consulate General Liaisons

Plus: How to protect yourself & your clients from cybercrime HackeD

&rvinff�Update Your Listings Wherever You Are!

innovator AWARDS

2 0 I J

ILLINOIS REALTOR® October 2016 3

ILLINOIS REALTORS®

Advocacy • Education • Ethics • Legal

CONTENTSOCTOBER 2016

Features

19 Illinois REALTORS®: The next 100 years

23 The Consulate General Liaison Program

24 Hacked! Protect yourself & your clients from cybercrime

30 Real Property Alliance: Helping Chicago property owners file tax appeals

Doug Carpenter leads the Illinois REALTORS® as it looks to the future.

Photo credit: Michael Hudson Photography. Doug Carpenter was photographed at Trinity Evangelical Lutheran Church in Oak Lawn, where he serves as senior organist.

Meet 2017 Illinois REALTORS® President

Doug Carpenterp. 15

Departments5 President’s Message:

What a century!

6 What’s Online: YPN Noncon’16, online GRI, #IllinoisRealtorRewind

8 Quick Takes: Illinois seniors, Illinois REALTORS® member profile, TRID update

10 Legal Update: Unauthorized practice of law, therapy animals, drones

12 At the Capitol: 2016 Spring Session Legislative Report

28 RVOICE: Illinois REALTOR® advocacy successes

32 Ombudsman Program Infographic

33 Market Watch: Q & A with Geoffrey J.D. Hewings

34 REALTOR® Community

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© 2016 Weichert Real Estate Affiliates, Inc. Weichert® is a federally registered trademark of Weichert Co. All other trademarks are the property of their respective owners. REALTORS® is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. Each WEICHERT® franchised office is independently owned and operated.

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RDL 676 WEI IL Realtor Mag 1.indd 2 7/19/16 2:26 PM

ILLINOIS REALTOR® October 2016 5

PRESIDENTS’ MESSAGE

Mike Drews GRI 2016 President

Doug Carpenter ABR, AHWD, GRI, SFR2017 President

LOOKING TO THE FUTURE

What a century!Which century, you might ask? Both. You see, Illinois REALTORS® spent the year celebrating 100 years of service to the real

estate industry and to those who rely on our members for professional guidance. Now, the focus shifts to the next 100 years.It would be hard for the association’s founders to recognize the real estate world we

work in today, but the framework they established in 1916 created an organization that by its very nature always looks forward.

William C. Johnson, Joseph K. Brittain and others on Illinois REALTORS®’ original board of directors knew protecting the industry through aggressive advocacy and attention to professionalism would prevail, no matter what the market was doing.

They set big goals. Their work ultimately delivered on those goals. Our founders’ legacy set up generations of volunteer leaders who understood the need

to constantly look at “what’s next” rather than concentrate on “what’s now.” Whether it is dispensing legal guidance, providing education or maintaining a steady

focus on professional standards, Illinois REALTORS®’ members have ensured the associa-tion is relentless in its mission of remaining relevant in a fast-changing world.

It’s this drive for excellence that makes it a certainty that Illinois REALTORS®’ second century will be as illustrious as its first.

Thanks for being a part of our future.

2016 President Mike Drews shares the asso-ciation’s efforts to build members’ interna-tional expertise at a meeting in Washington, D.C., in May. Photo credit: Matt Difanis

Incoming 2017 President Doug Carpenter addresses incoming local association lead-ers at the Illinois REALTORS® Leadership Summit in August.

Stay safe on the job. Find tips and tools to increase your knowledge, awareness and empowerment from the National Association of REALTORS® at www.REALTOR.org/Safety

6 www.illinoisrealtors.org

GO

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

2016 OFFICERS President Mike Drews, GRI mdrews@dossrealtors.com

President-Elect Doug Carpenter, ABR, AHWD, GRI, SFR doug21@comcast.net

Treasurer Matt Difanis, ABR, GRI matt@mattdifanis.com

Immediate Past President Jim Kinney, ABR, CRB, CRS, GRI, SRES jim.kinney@bairdwarner.com

Chief Executive Officer Gary Clayton, CAE, RCE

Executive Vice President Luke Bell

Editor Jon Broadbooks

Senior Editor Stephanie Sievers

Content Marketing Specialist Bill Kozar

Graphic Designer Katie Grant

For advertising information contact Advertising & Sponsorship, (217) 529-2600, info@illinoisrealtors.org

The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by the Illinois REALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster : Send address changes to: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217/529-2600.

Opinions expressed in any signed ar ticles of the ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of the Illinois REALTORS®. Adver tising of product or services does not imply endorsement.

Advertising rates are available at www.illinoisrealtor.org or on request. Annual dues of every REALTOR®, REALTOR-ASSOCIATE®, and Affiliate member includes $3 for a one-year subscription to the ILLINOIS REALTOR®.

VOLUME 53: NUMBER 4

Copyright © 2016Illinois REALTORS®

All rights reserved.

www.illinoisrealtors.orgemail: info@illinoisrealtors.orgblog: www.iarbuzz.com

Like us on Facebook.

Join us on LinkedIn.

Follow @ILREALTOR and @ILREALTORmag on Twitter. Subscribe to YouTube.com/c/illinoisrealtorsvideo

WHAT’S ONLINE

JOIN US OCT. 5 FOR THE YPN NONCON’16 IN NAPERVILLELearn about the latest digital trends, favorite business and marketing tips and best industry practices during this one-day conference. Discussion leaders include Deena Zimmerman, Sam Powell and Carrie Bey-Little. The setting is informal and the opportunity to share ideas and network with your peers is invaluable. The $20 registration fee will be donated to the Boys and Girls Clubs of America. YPN Noncon’16 is 1 – 4:30 p.m., with an after-party, on Oct. 5 at the Chicago Marriott Naperville.

Learn more at www.illinoisrealtors.org/ypnevents

EARN YOUR GRI ONLINEEarning your Graduate, REALTOR® Institute (GRI) has never been more convenient with the Illinois REALTORS® Licensing and Training Center’s new online program and curriculum. The online courses fit your schedule and allow you to study anytime, anywhere and enable you to earn a respected designation that improves your earning power and professional credibility. Get started on your GRI at www.illinoisrealtors.org/gri.

DID YOU KNOW?Throughout 2016 in honor of the Illinois REALTORS®’ 100th anniversary, our social media channels have spotlighted different moments in the as-sociation’s history. Find them on Facebook and Twitter under the hashtag #IllinoisRealtor-Rewind. (www.facebook.com/hashtag/illinoisrealtorrewind and https://twitter.com/hashtag/RealtorRewind)

THE LATEST HOT LEGAL TOPICSLearn more about the legal topics affecting the industry and your business with the Illinois REALTORS® Legal Webinars. Each one-hour webinar is available at www.illinoisrealtors.org/legal/webinars.

Legal webinars are a members-only benefit, so you will need to log in. Recent topics include:• Drones, Contracts and More• Insurance Coverage and

Products for Real Estate Brokers

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8 www.illinoisrealtors.org

QUICK TAKESILLINOIS SENIORS CONCERNED ABOUT PROPERTY TAXES AND HOUSING AFFORDABILITY

Senior citizens in Illinois are happy with the quality of life in Illinois, but they worry about prop-erty taxes, the cost of living and their ability to age in place as they get older, according to a recent survey of state residents 55 and older commis-sioned by the Illinois REALTORS® Senior Housing Working Group.

The survey provides a better under-standing of the impact the state’s aging population will have on housing and to prepare the association’s members to better serve senior clients.

Among the findings:

X Two-thirds (66 percent) said it is somewhat hard or very hard to afford property taxes.

X Three-fourths of those polled (76 percent) said they were concerned about the cost of living in the state, including 44 percent who said they are very concerned. Yet, 33 percent of respondents said they were very confident they can afford the home they want in the future.

X Eighty-one percent of seniors surveyed own their homes and 17 percent said they rent. When asked what they would do if they moved, 35 percent of respondents said they would likely rent.

X One third (34 percent) of respondents said they plan to downsize the amount of living space they have if they move. Thirty-nine percent of women say they plan to downsize, versus twenty-nine percent of men.

Transportation

Housing

Groceries & food

Utilities

Healthcare & medical expenses

Saving for retirement

Property taxes 40% 26% 66%

39% 21% 59%

27% 31% 58%

18% 30% 49%

15% 28% 42%

15% 26% 41%

9% 16% 25%

How hard is it to afford:

Top concern for state’s seniors: Property taxesPaying property taxes tops the list of financial concerns for seniors surveyed.

Very hard

Somewhat hard

Most seniors say they would prefer to stay in stateIf older residents move, most say they’d stay in Illinois; fifty-six percent say they would stay within their community or another part of the state.

Percentage who would stay in same community (46%) or move to another partof Illinois (10%)

56%56% Percentage who would move to a different state

35%35%

The survey is part of a new Senior Housing Resources Toolkit. Find the full survey, housing information and resources at

www.illinoisrealtors.org/Senior-Toolkit. You’ll also find a brochure, “Planning for Senior Housing in your Municipality,” that you can

share with policymakers in your community.

“We know that as people age, their housing needs change. This survey shows how im-portant it will be in the next few decades for policymakers and developers to craft com-munities which provide the right housing choices and services for senior citizens.”

– REALTOR® Dana Hybl, SRES, chair of Illinois REALTORS® Senior Housing Working Group

Percentage totals may not add up precisely due to rounding.

ILLINOIS REALTOR® October 2016 9

ILLINOIS REALTORS® MEMBER PROFILE

51Average age*

42Average age of NEW

members*

54%female*

46%male*11 Typical years of

experience in the real estate business**

18% of business comes from repeat customers; 21% through referrals from past clients**

81% are certain they will remain in the real estate business for two more years**

54% Affiliated with an independent company**

90%Independent contractors

with their firms**

72%Real estate is their only occupation;

84% for those with 16+ years experience**

81%Own their primary

residence in Illinois**

Sources: *Illinois REALTORS® membership database; **“2016 Member Profile: Illinois REALTORS® Report” prepared by the National Association of REALTORS® www.realtor.org/reports/member-profile

New I-REFI program helps underwater Illinois homeowners refinance

The Illinois Housing Development Authority (IHDA) has launched I-REFI, a program that offers underwater Illinois homeowners up to $50,000 in federal assistance to buy down mortgage balance and refinance to an affordable, 30-year loan. Illinois is one of two states creating refinancing programs with federal funding from the Hardest Hit Fund.

To qualify for the I-REFI program, homeowners must be current on their mortgage for at least 12 months, have a qualifying credit score and be within IHDA’s income and home price limits. Learn more about the I-REFI program and find a list of participating lenders at www.ihda.org

TRID Update: REALTORS® gain access to closing disclosure formLenders may now provide consumers, sellers and their real estate agents with access to the mortgage closing disclosure form, under a TRID clarification announced by the Consumer Financial Protection Bureau this summer. REALTORS® had fought for the change since the TRID rules went into effect, arguing that by having access to the closing disclosure, they could better serve their clients and consumers would have a better under-standing of their mortgage.

Sign up for REALTOR® Party text alertsHave Calls for Action sent directly to your mobile device. (Message and data rates may apply.) Text REALTORS to 30644 or fill out the online form: http://bit.ly/textCFA

Asian American and Pacific Islander housing data added to Census reportsThe Asian Real Estate Association of America (AREAA) successfully pushed to have dis-

tinct data on Asian Americans and Pacific Islanders collected for quarterly homeownership reports beginning in July. Chicago REALTOR® and AREAA National Chair Vicky Silvano along with her AREAA colleagues were instrumental in getting the change.

AREAA’s national educational campaign, “No Other,” called for pulling out specific homeownership statistics of Asian Americans and Pacific Islanders rather than combin-ing them in the “other” census category. The change will provide better understanding of this population group’s housing and homeownership issues. http://blog.illinoisrealtors.org/2016/07/july-marks-beginning-census-bureau-advocated-silvano-areaa (l to r) AREAA Chair Emeritus Jim Park, U.S.

Census Bureau Director John Thompson and AREAA National Chair Vicky Silvano.

Realtor

Party®

10 www.illinoisrealtors.org

LEGAL UPDATE

Elizabeth A. (Betsy) Urbance | Illinois REALTORS® Legal Hotline Attorney; Associate, Sorling Northrup Attorneys

WHEN ASSISTING A BUYER VEERS INTO THE UNAUTHORIZED PRACTICE OF LAW AND OTHER LEGAL QUESTIONS

Q Recently, a broker was assisting a buyer to find a suitable home. The buyers found a “For Sale by Owner” (FSBO) property. The broker called the seller and calls went unreturned. Before looking for properties, the broker had referred the buyer to a local lender to be pre-qualified for a loan. In the end, the buyer and FSBO seller got together on their own and negotiated terms of their agreement without the buyer’s broker, or any broker at all. The buyer’s lender then assured the parties that she would oversee the preparation of the paperwork. Is this appropriate?

A There are several troubling issues on these facts. First, one would think it good business practice for the lender to send the buyers back to their own real estate broker for advice on the market and preparation of a potential offering price. In addi-tion, the buyer’s broker could probably have provided a form purchase contract that is commonly used in the community and prepare the offer (only completing business and factual information). If seller would not then respond to the buyer’s broker, the buyer could proceed to the seller on their own. (This analysis will not assess any commission payment issues). On the facts presented, regardless of payment, the buyer’s bro-ker would owe agency duties to the buyer client.

However, the facts at hand suggest that the lender avoided the buyer’s broker altogether, which cause further concerns to arise. One issue is whether the lender has appropriate access to a local form purchase contract. If the lender provided a form contract, chances are the lender did not have the proper permissions to use the form. Next, if the lender oversees the preparation of the written contract, or even prepared the con-tract reflecting the parties’ agreement, the lender has engaged in the unauthorized practice of law. Seller and buyer are free to write their own contract reflecting the terms of their agree-ment, essentially serving as their own “attorneys.” But for any-one other than the parties or their licensed attorneys to do this, unlicensed practice of law is a concern.

When buyers and sellers need to commit their agree-ment to sell or purchase real estate to writing, they may need their attorneys to assist them. There are times when a licensed real estate broker could assist them, but only when the real estate broker is doing this in furtherance of providing other real estate brokerage services. The real estate broker can assist

when using a form that is commonly used in their community and then, only to complete business and factual information on the form purchase contract. Real estate brokers must always suggest that their clients seek legal advice for any drafting of substantive contract language or for any legal analysis or inter-pretations needed. Sellers and buyers are free to write their own contracts, but this might not always be the best decision. The bottom line on these facts is that neither the lender nor the real estate broker should assist the parties with the preparation of their purchase contract once the parties have agreed to all the terms on their own. To do so would be the unauthorized practice of law.

DO ‘NO PETS’ RULES APPLY TO THERAPY ANIMALS?Q Is it permissible for a landlord or property manager to refuse to rent to a person who has a therapy or emotional support animal if the building has a “no pets” policy? Isn’t it true that therapy animals are treated differently than service animals, such as guide dogs?

A While there might be some difference in treatment between service animals and therapy or emotional support animals for access to public places under the Americans with Disabilities Act (ADA); for housing purposes the analysis is substantially similar. Therefore, a person who needs a therapy or support animal would be able to avoid the “no pets” policy if the person provides a basic level of proof for the need. For example, the prospective tenant might provide a doctor’s prescription for the animal. The U.S. Department of Housing and Urban Develop-

ILLINOIS REALTOR® October 2016 11

ment (HUD) says in an April 25, 2013 memorandum, that re-quests for an assistance animal should be analyzed as a request for a reasonable accommodation. In addition, HUD says the Fair Housing Act applies to almost all housing, whether there is federal assistance or not. (The exceptions are owner-occupied housing with no more than four units, where the owner does not use the services of a real estate broker and does no advertis-ing of the property).

For an assistance animal request, the owner or manager can ask two questions:

1. Does the prospect have a disability that limits major life activities?

2. Does the prospect have a “disability-related need for an assistance animal?” This could include emotional support that “alleviates a person’s symptoms or effects or a person’s existing disability.”

HUD says if the answer to either question is “No” then the owner/manager could apply the “no pets” policy. HUD goes on to say where the answer to both questions is “Yes,” the housing provider must modify or make an exception to the “no pets” rule. The assistance animal must be allowed to go wherever the assisted person can go. The reasonable accommo-dation must be made unless it would create an undue financial burden on the owner. The owner/manager can ask for some minimal level of proof of the disability, i.e. a prescription for a diagnosed condition.

Generally speaking, the owner/manager must not charge a pet deposit. Although, he could charge to repair damages after the termination of the lease. Owners/managers must not apply size or weight restrictions. And, the type of animal could be assessed as to whether it would cause a direct threat to the safety of others. Tigers will likely not qualify as support ani-mals. (The previous statement, while true, is also a test to see who is reading until the end).

For more details on this question, go to the HUD Memo Dated April 25, 2013; https://portal.hud.gov/hudportal/docu-ments/huddoc?id=servanimals_ntcfheo2013-01.pdf

FAA RULES FOR USING DRONESQ What is the latest news on using small drones for commercial purposes?

A The federal rules governing the flight of small “Unmanned Aircraft Systems” (UAS), or drones, became effective on Aug. 29, 2016 and will be administered by the Federal Aviation Administration (FAA). Generally, the rules permit the com-mercial operation of small drones — those weighing 55 pounds or less — during daylight hours no higher than 400 feet above the ground. The drone operator must be at least 16 years old and possess an FAA issued remote pilot airmen’s certificate, which must be recertified every two years. In addition, there are operational variations and limitations that drone pilots need to know about, unless the pilot is granted a waiver from FAA. These include:

X The maximum ground speed may not exceed 100 mph.

X If the operator does not hold the certificate, he must be under the supervision of someone who does have the FAA certificate.

X The operator may not fly the drone from a moving vehicle unless the drone is being flown over a sparsely populated area.

X It is important to note that drones may not “operate over any persons not directly participating in the operation, not under a covered structure, and not inside a covered stationary vehicle.” This rule will likely make drone flying in any urban area quite impractical without seeking a waiver.

Note the above list contains only a few of the most basic provisions. For more on the subject see Jeffrey T. Baker’s arti-cle in the Illinois REALTORS® DR Legal News, dated July, 2016 (http://www.illinoisrealtors.org/DRlegalnews). In addition, see NAR’s list of FAQs at http://www.realtor.org/law-and-ethics/drones-frequently-asked-questions

As of press time, the written test for drone pilot certifi-cates had not been drafted. However, all signs indicate that commercial drone pilots will need a basic understanding of air-space and flight regulations, safety procedures and flight risk management. Go to these websites for more information:

X http://www.faa.gov/uas/getting_started/fly_for_work_business/becoming_a_pilot/

X https://www.faa.gov/training_testing/testing/acs/

Furthermore, understand that some local ordinances gov-erning the commercial drone flights might already be in place. Generally speaking, drone operators must comply with any local regulations, even if they are stricter than federal rules. Keep in mind that all drones weighing more than 0.55 pounds are already subject to a registration requirement where a unique number must be affixed to the drone.

Stay tuned for further developments at every regulatory level as commercial drone usage will undoubtedly increase. If you are flying drones commercially, get your certificate and fol-low the rules. Consult with your attorney and your insurers. If you hire someone to provide drone flight services, make sure the operator is certificated and insured.

GOT A LEGAL QUESTION? The Illinois REALTORS® Legal Hotline is the Designated REALTOR®/managing broker’s go-to sourcefor legal information. Phone: 800.952.0578 | Email: burbance@illinoisrealtors.org Hours: 9 a.m. to 4 p.m., Monday through Friday

GOT A LEGAL QUESTION ON TRANSACTIONS? Call the Illinois REALTORS® Transaction Helpline.Phone: 844.647.3833 | Email: jbaker@illinoisrealtors.org

NEED HELP RESOLVING A DISPUTE WITH A REALTOR®?Illinois REALTORS® has a Consumer Help Line to try and resolve questions relating to real estate transactions.Help Line: 217.529.2600 | Web: www.illinoisrealtors.org/disputes Hours: 9 a.m. to 4:30 p.m., Monday through Friday

12 www.illinoisrealtors.org

AT THE CAPITOL

Julie Sullivan | Assistant Director, Legislative and Political Affairs

VOTE!

I’m a REALTOR

®

General ElectionNov. 8

and I

2016 SPRING SESSION LEGISLATIVE REPORTThe 2016 spring session of the

Illinois General Assembly was domi-nated by the state budget. Thousands of substantive bills were considered and your Illinois REALTORS® lobbyists tracked and worked on nearly 200 bills. Below are the top issues on our agenda this year.

Stopped efforts to expand the number of home rule unitsStatus: DEAD

Two proposed amendments to the Illinois Constitution, House Joint Resolution Constitutional Amendment (HJRCA) 34 and 38, were initiatives of the Illinois Municipal League (IML) which sought to put the question on expanding the number of municipali-ties that would be automatically granted home rule powers. HJRCA 34 lowered the municipal population threshold from 25,000 to 20,000 and HJRCA 38 lowered the municipal popula-tion threshold from 25,000 to 5,000. HJRCA 38 was the one favored by the IML and it would have added 173 new home rule units. Illinois REALTORS® OPPOSED the amendments, arguing the framers of the Illinois Constitution already provided for a referendum as the mechanism for additional municipalities to be granted home rule status.

Stopped new smoke detector mandateStatus: DEAD

SB 2837, which we OPPOSED, sought to amend the existing Smoke Detector Act to require homeowners and landlords of pre-1988 housing to replace current battery operated detec-tors with NEW detectors with batteries that are not removable or replaceable and which last for at least 10 years.

Stopped extreme expansion of radon disclosure provisions for rentersStatus: DEAD

House Bill 4528 sought to repeal the radon disclosure provisions relat-ing to one-story and two-story rental dwelling units, which had been nego-tiated several years ago, and replace those provisions with a comprehen-sive new “Tenants Radon Protection Act.” The proposed new Act, which we OPPOSED, was an extreme expan-sion that would require landlords to tell prospective tenants the dwelling may expose them to radon and is “the lead-ing cause of death in private homes.” This would have been beyond the dis-closure for sales transactions. Tenants would have been allowed to do their own testing and mitigation and to break their lease if a radon hazards was not mitigated. Coverage was expanded to ALL rental dwelling units — even high-rise buildings (currently the law applies only to one-story and two-story units), as well as short-term oral leases, where the risks of exposure are extremely lim-ited due to the very short term occu-pancy of the dwelling.

Ensured that the Real Estate License Act is current and REALTORS® are representedStatus: PASSED and SIGNED into law (Public Act 99-662). Effective Jan. 1, 2017.

House Bill 6245, an initiative of the Illinois REALTORS® clarified the Real Estate License Act with regard to ambiguity as to whether, according to a strict interpretation of the law, a manag-ing broker could not “earn” more than 6 hours of CE in one day, which goes against taking the test for the 12-hour broker-management CE course.

Removed real estate licensees from legislation regarding licenses for convicted felonsStatus: PASSED and SIGNED into law (Public Act 99-876). Effective Jan. 1, 2017

House Bill 5973, which the REALTORS® initially OPPOSED, would have amended the Real Estate License Act and others licensing Acts, to create a presumption that an offender of ANY criminal offense is entitled to a real estate license, once they have served their sentence, unless the department finds that the crime was “directly related to licensed activities.” We initially strongly opposed the bill as it would have potentially granted past violent felons a real estate license, whereby they would have direct access to property through lock boxes, a leasing office, etc. The sponsor and proponents of the leg-islation heard our concerns and the bill was amended to REMOVE real estate licensees from the bill.

Fixed legislation regarding lead mitigationStatus: PASSED and SIGNED into law (Public Act 99-790) Effective Jan. 1, 2017.

After months of negotiations, Senate Bill 2300 was approved. The bill amends the Lead Poisoning Prevention Act to require that if a “lead mitiga-tion notice” is issued (indicating a child living there has been poisoned by lead) that the hazard must be mitigated prior to entering a new lease. When initially introduced the bill would have pro-hibited the sale of a single or multi-family building if it had a lead issue. The Senate amended the bill and sent it to the House to put this new require-ment on rental properties only. Illinois REALTORS® worked with Cook County and the Attorney General’s Office to further amend the bill in the

ILLINOIS REALTOR® October 2016 13

House to clarify some provisions in the bill, including a limitation that the bill will apply only to a new lease.

Opposed efforts to expand the sales tax to professional services or advertising Status: ONGOING

We continued to work with a coali-tion to express our opposition to con-cepts that have been discussed to expand the sales tax to cover certain services — i.e. professional services that would include real estate brokerage OR a tax on advertising and advertising services. NO bills have, to date, been introduced or considered but these continue to be on our WATCH list. Go to www.noadtaxillinois.com

Stopped onerous local lien legislation and efforts to create separate state tax lien registry Status: DEAD

We again battled municipal efforts to expand their lien powers. Senate Bill 3038 amended the section of the Illinois Municipal Code dealing with the lien that a municipality files for costs incurred for removing weeds/grass, trees/bushes, pests, garbage, debris and graf-fiti. This bill sought to make a dramatic change to allow the municipality to skip the foreclosure proceeding on the lien on the offending property and to instead obtain a judgment lien against ALL real estate of the owner. Duplicate bills initiated by the Illinois Department of Revenue — Senate Bill 3323 and House Bill 6621 — sought to create the Uniform State Tax Lien Registration Act to allow the state to file a notice of a tax lien in a separate state registry rather than record it in the recorder’s office in the county in which the property is located.

Supported efforts to streamline/consolidate local government unitsStatus: PASSED

For several years, Illinois REALTORS® have supported efforts

to reduce and consolidate the stagger-ing number of local governmental units. There were several bills introduced this year:

• House Bill 229, expanded the suc-cessful consolidation plan from the DuPage County initiative to Lake and McHenry counties (efforts were made to expand to ALL counties stalled). PASSED and SIGNED into law (Public Act 99-709) Effective Aug. 5, 2016.

• House Bill 4371, provides for a mechanism to dissolve a water authority (except an authority servicing any part of Chicago). PASSED and SIGNED into law (Public Act 99-668) Effective July 29, 2016.

• Senate Resolution 1938 cre-ated a 19-member “Working Group on Local Government Consolidation” to identify ways to eliminate barriers to consolida-tion and resolve certain discrepan-cies in Illinois law governing local governments and special taxing districts in Lake County and the 31st Legislative District. Passed and is in effect.

• Senate Bill 2994 amends the Illinois Counties Code to require county boards to prepare and file a report with the General Assembly on or before Jan. 1, 2017 to identify any local public entity that it appoints members to and to provide specific informa-tion about those local public enti-ties. PASSED and SIGNED into law (Public Act 99-634) Effective July 22, 2016.

There were also several bills that specifically dealt with township consoli-dation/dissolution, some special taxing districts and citizens’ empowerment that were also supported but stalled.

Stopped diminishment of public notice requirementsStatus: DEAD

Senate Bill 3181 and House Bill 6098 would have permitted the elec-tronic publication of public notices rather than in a newspaper. We were concerned with the sweeping change to

include ALL types of notices and ALL units of local government and we cau-tioned legislators about the impact on property owners who may not be aware of checking a local government’s website or the state’s maintained Transparency and Accountability Portal.

Stopped legislation that would have prohibited the use of comps in valuing certain propertyStatus: DEAD

Senate Bill 2367, a measure that sought to establish a new and contro-versial method of assessing the taxable value of a particular subset of com-mercial property, was not called for a vote. The bill specifically targeted, retail property where the building is 50,000 square feet or more, improved within the last 20 years, and the original owner of the property, or a tenant, is engaged in retail and occupies more than 75 per-cent of the square footage of the prop-erty. The bill would have prohibited the use of comparables in the valuation of these properties.

Stopped legislation creating new Class 4 felony for criminal building managementStatus: DEAD

House Bill 6036 would have created the offense of criminal building manage-ment. The bill would have made com-mercial building owners and managers potentially subject to criminal prosecu-tion if there was a code violation on the premises which was a contributing factor in a first responder getting hurt or killed on the premises.

Learn more about the 200+ bills tracked by your Illinois REALTORS® lobbyists to protect your clients and your real estate business www.illinoisrealtors.org/government.

ILLINOIS REALTOR® October 2016 15

2017 Illinois REALTORS® President Doug Carpenter

as Illinois REALTORS®........ moves forward

By Stephanie Sievers Senior Editor

“By staying involved you’re not only learning from it, but you’re part of the process.”

— 2017 Illinois REALTORS® President Doug Carpenter

Photo credit: Michael Hudson Photography

When Doug Carpenter looks back at everything the Illinois REALTORS® has accomplished over its

100-year history, the only word that comes to mind is “amazing.”

From its humble beginnings in 1916, the a ssoci a-tion ha s grown into one of the leading state REALTOR® organizations in the country. The Illinois a ssoci ation ha s earned the respect of not only its members, but a lso from industry peers around the country, he sa id.

Carpenter, the managing broker of Coldwell Banker Honig-Bell in Orland Hills and a trained musician who has served as senior organist at his church, has that leg-acy in mind as he prepares to lead the association into its next century.

“We’ve created a strong foundation and I want to carry that forward and build on it a s we head into our future,” he sa id.

The early yearsCarpenter grew up in Rockford, the oldest of four

children. After graduating from Harlem High School, he enlisted in the U.S. Air Force. The Vietnam War was going on at the time and Carpenter decided he would rather enlist than wait to be drafted. He chose the U.S. Air Force because of the training and education benefits it provided and was stationed at Travis Air Force Base in California.

He served from 1966 to 1969 before being sent home on a hardship discharge so he could help his family after his father was injured in a work accident. Carpenter began working in sales when he returned home, but says the rigors and experiences of serving in the military have a lasting impact on those who have served.

“I look back at that as a good molding, shaping expe-rience for me,” he said.

16 www.illinoisrealtors.org

A love of the real estate processCarpenter’s sales career eventually led him to

Chicago where he was working in the 1980s when a friend suggested that he consider a job in real estate. Ready to try something new, he jumped in and found he enjoyed the process of working with homebuyers, sell-ers and agents. He got his real estate license in 1985 and quickly got into broker management.

With his previous background in sales management and his training as a continuing education instructor, Carpenter says he has found himself well suited to man-aging a brokerage. At the Orland Hills Coldwell Banker Honig-Bell office, he oversees an office of 32.

In 2003, his management focus shifted gears when he became the CEO of the Three Rivers Association of REALTORS®. The job offered him new profes-sional challenges while allowing him to continue in the REALTOR® organization at a different level. The Three Rivers association represents more than 1,000 members in Joliet and parts of Will, Grundy, Kendall and Kane counties.

While he enjoyed his work as CEO, Carpenter found that he missed the day-to-day interactions of working with agents and clients and returned to broker-age management after 2006.

“Each day is different and there is a challenge to that. It’s the enjoyment of watching that first-time home-buyer achieve their dream and know that you’ve been

part of the process.”— 2017 Illinois REALTORS® President Doug Carpenter

“Each day is different and there is a challenge to that. It’s the enjoyment of watching that first-time homebuyer achieve their dream and know that you’ve been part of the process,” he said.

Carpenter said his three years leading an association as a CEO gives him additional insight into the issues facing local associations.

Steady voice of leadershipIllinois REALTOR® and industry trainer Lynn Madison has

known Carpenter as a colleague and friend for years and says one of his greatest leadership strengths is his ability to get everyone involved, engaged and feeling like their voice is being heard in the decision-making process.

Madison says he is an inclusive leader who has a calming effect on everyone, listens to all sides of an issue and knows what needs to be done.

“He’s thoughtful. He doesn’t jump to conclusions,” she said.His leadership style worked well during the not one, but two

times he has served as president when his local REALTOR® associa-tion merged with another REALTOR® organization.

Now he takes on the task of leading the state association and his predecessor, 2016 President Mike Drews says the association will be in good hands as it moves forward.

“Doug is very knowledgeable about the issues we have as REALTORS® at all levels: local, state and national,” Drews said.

Rolling up his sleeves and getting to workCarpenter has a long history of getting involved not just at the

local association level, but also with the Illinois REALTORS® and the National Association of REALTORS® (NAR).

During his more than 30-year career, he has volunteered his time and expertise to numerous local, state and national commit-tees, working groups and boards. Carpenter says he believes if you are going to be a part of something then you should get involved and contribute your time and talents.

“By staying involved you’re not only learning from it, but you’re part of the process,” he said.

Some of his early state participation was in the Real Estate Educational Foundation (REEF), and professional development con-tinues to be a priority. He served as REEF president in 2009 and again in 2010.

He encourages REALTORS® to keep learning more about the industry by pursuing professional designations.

“I think designations are very important not only for you, but for your client. It goes back to your knowledge base and having the most current and up-to-date information and skills,” says Carpenter, who holds the ABR, AHWD, GRI and SFR designations. Through his committee work, Carpenter has been able to focus on two other areas that are important to him: improving professional standards within the industry and addressing the business issues and

Carpenter has served as senior organist at Trinity Evangelical Lutheran Church in Oak Lawn for 15 years. He is scaling back his involvement this fall, but music has always been an important part of Carpenter’s life. He began playing the piano at the age of 8, but later switched to the organ and played his first worship service on Easter Sunday when he was just 14. Photo credit: Michael Hudson Photography

ILLINOIS REALTOR® October 2016 17

license law affecting REALTORS®. He was a member of the license law working group dur-ing the last rewrite of the state law.

Nationally, he is a long-time member of NAR’s Board of Directors and has served mul-tiple terms on NAR’s Business Issues Policy Committee.

Carpenter’s involvement has not gone unrecognized. He has been honored as REALTOR® of the Year by his local associa-tion and in 2009 was awarded the Illinois REALTORS® Distinguished Service Award, which recognizes REALTORS® who have pro-vided outstanding contributions and service to the state association and local community.

RPAC supporter & champion

Carpenter has the prestigious distinc-tion of being the first Illinois REALTOR® to be inducted into NAR’s RPAC Hall of Fame. The award recognizes those who have contrib-uted an aggregate of at least $25,000 to the REALTORS® Political Action Committee. Ever committed to the RPAC mission, Carpenter has now reached $50,000 in contributions and will be honored by NAR in the spring.

In 2002, Carpenter and 22 other REALTORS® nationwide were honored as the first RPAC Hall of Fame class. Like the nearly 700 REALTORS® around the country who have followed in the years since, the inductees have been honored with their names inscribed on a plaque on the rooftop of the National Association of REALTORS® building in Washington, D.C.

“For me that recognition has never been the reason why I do it, but as you realize what you are doing and how you are contributing to the goal and the cause, there are good feelings about that,” he said.

Carpenter says it is important for REALTORS® to understand the power of RPAC and advocacy to protect not only their business interests, but also the rights of homeowners and consumers. The state association works dili-gently to educate members about the importance of RPAC, and Carpenter said a goal this year is to increase involvement.

Looking ahead One of the big issues facing REALTORS® today is constantly changing technology and the im-pact it has on consumers.

“It’s a balancing act because unfortunately the technology that the consumer goes to today is not always the most current information,” Carpenter said. “We have to get them back on track to what is the most up-to-date on the MLS. Sometimes they have their heart set on something that is no longer available.”

That is why the role of the REALTOR® is more important than ever, he said.

“You’re constantly reestablishing and build-ing that relationship so that you are the go-to per-son and not the Internet,” Carpenter said.

Carpenter points to his name on NAR's RPAC Hall of Fame in Washington, D.C. He is a member of the Mainstreet Organization of REALTORS®.

10 QU E S T ION S W I T H

Doug CarpenterHow would you describe you leadership style? Consensus building

What has been your greatest accomplishment, personally or professionally? Becoming president of the Illinois REALTORS®

What is your favorite part of the real estate business? Working with new licensees

What is the best real estate advice you ever received? Make one more call

If you weren’t a REALTOR®, what would your other dream job be? Teacher

What do you like to do with your free time? Reading and working in the yard

What is your favorite vacation destination? Somewhere I haven’t been before

What’s the last good book you read? “Alexander Hamilton” by Ron Chernow

What’s something people would be surprised to know about you? It would probably surprise me as well

If you could have lunch with anyone, alive or dead, who would it be? Abraham Lincoln

2017 Illinois REALTORS®

Leadership

PRESIDENT Doug Carpenter,

ABR, AHWD, GRI, SFRManaging Broker of

Coldwell Banker Honig-Bell in Orland Hills

PRESIDENT-ELECTMatt Difanis,

ABR, GRICo-owner of RE/MAX Realty

Associates in Champaign

TREASURERDan Wagner

Senior Vice President for Government Relations at the

Oakbrook-based Inland Real Estate Group of Companies, Inc.

IMMEDIATE PAST PRESIDENTMike Drews,

GRI Broker-Associate with

Charles B. Doss & Co. in Aurora

*All leadership positions are to be approved by the Board of Directors on Oct. 6.

www.illinoisrealtors.org/officers

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Futurecation options, the legal landscape and the ongoing goal oroving professional standards.

®A lot can happen in 100 years. When the Illinois REALTORS® was formed in 1916, Model T’s were the car of choice, indoor lighting was the most high-tech thing in most people’s homes and renters outnumbered homeowners.

As we stand on the cusp of our next 100 years, Illinois REALTOR® magazine asked people with a significant invest-ment of service in the association to talk about the themes and trends they think will shape our future.

Technology could substantially impact how we reach consumers and members through advocacy, the evolution of

edu f imp

“Illinois REALTORS has always been great at being able to look ahead to the future for what was coming down the pipeline for our real estate business,” said REALTOR® Loretta Alonzo-Deubel, who served as president of Illinois REALTORS® in 2012.

In the years ahead, the traditional real estate business model could evolve.

“Technology is going to take us to a whole new level. We don’t know where that ceiling is or if there even is a ceiling when it comes to technology,” said REALTOR® Jean Crosby, who led the Illinois REALTORS® in 1999.

ILLINOIS REALTOR® October 2016 19

The Future of ADVOCACYHaving a stronger political voice

on the issues affecting their business was one of the earliest reasons many REALTORS® came together to form local, state and national associations. Through the years, the REALTOR® organization — at all levels — has been a leader in making sure REALTORS® have a voice, says Illinois REALTORS® Director of Governmental Affairs Greg St. Aubin.

“In our advocacy, the vast majority of what we do is try to fix or stop bad ideas. Year-in and year-out, no mat-ter what crisis is going on at the local, state and national level, that’s what we do,” he said.

The REALTOR® organization has a track record of committing the resources and attention needed to provide top-notch advocacy through technology, personal contact and other means and that will only evolve and grow, St. Aubin said.

Illinois REALTORS®’ Springfield lobbying team and the local Governmental Affairs Directors (GADs) represent members around the state and technology has allowed them

to quickly send advocacy messages and empower the association’s members with the grassroots tools they need to push for change.

Calls for Action can be sent directly to mobile devices enabling REALTORS® to immediately con-tact elected officials. Developments in Springfield can be reported in “real time.” Social media and websites carry the REALTOR® message to an ever broadening audience.

Mike Scobey, assistant director of RVOICE and Local Advocacy for Illinois REALTORS®, says that a fast response is essential for tackling issues such as efforts to increase regulations and fees on property owners or to expand home rule.

Efforts to reach out to consumers directly on issues, as with the new Real Property Alliance foundation, help bolster community support and keep homeowners informed.

“We’re using websites and tech-nology to engage more people not just when the issue is right in front of them, but for the long haul,” Scobey said.

REALTOR® Ed Neaves, of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington, expects the use of predictive analyt-ics to be a major tool of future advo-cacy efforts. By analyzing behavioral data and other variables, Illinois REALTORS® will be able to drill down and send the most persuasive advocacy message to the most responsive audience.

“Instead of a shotgun theory of ‘let’s just put it out there to everybody,’ you can actually target it to a group,” he said. “If you can at least predict that they will respond to cer-tain messages, then the messages could be more targeted and probably more effective.”

The strong foundation of advocacy is in place so that “whatever comes in the future, we are always going to be on the cutting edge of using the most current and cutting edge tools to pro-tect our members and Illinois property owners,” St. Aubin said.

— Stephanie Sievers, Senior Editor

Ed Neaves

20 www.illinoisrealtors.org

The Future of EDUCATIONLooking ahead, what does

the future hold for the training and professional development of REALTORS®?

Online, video and interac-tive courses will be key to meet-ing students’ needs, says Carrie Elliott, Education Manager for the Illinois REALTORS® Licensing & Training Center.

“With rapidly changing technology, our real estate educa-tion programs must be adaptable to attract the new digital genera-tion,” she said, “Our school will continue to enhance our flex-ible learning programs to accommodate a wide range of learning styles.”

Fortunately, REALTORS® may be sure that the pro-grams offered by the Illinois REALTORS® Licensing & Training Center are always state-approved and contain the most accurate, relevant and up-to-date information available.

REALTOR® and Instructor Carrie Bey-Little, of Baird & Warner in Glen Ellyn, says it

will become more important to diver-sify educational options. Some REALTORS® prefer to attend real-time classes

and webinars, but others prefer access to courses on their own time online or through down-loadable recordings that they can come back to later.

“They want to be able to learn it when they’re ready to learn it, not when we make it available,” she said, adding that younger generations are digi-tal natives who may prefer à la carte options that offer more flexibility.

Professional development is about more than merely earning required credit hours, however.

Illinois REALTORS® Director of Professional Development Kristen Butcher, CMP, says the Licensing & Training Center will be work-ing hand-in-hand with profes-sional standards to provide

new professional development opportunities above and beyond regular continuing edu-cation courses.

Professional development content will be geared toward making REALTORS® better, keeping them in compliance, and helping them through dif-ficult transactions. Courses will likely be available in small, one-hour segments that will delve more deeply into specific subject matter. Because the subject mat-ter is so focused, REALTORS® may select only the courses which directly address their questions.

Ultimately, the limit to how far REALTORS® may go in their profession is determined in large part by their commit-ment to ongoing professional education and the Illinois REALTORS® Licensing & Training Center will be here every step of the way.

— By Dawn Pennington, Marketing Specialist

The Future of PROFESSIONAL STANDARDS

the REALTOR® Code of Ethics, report the bad behavior of colleagues and stay current about devel-opments in the industry, says Chris Read of the Illinois REALTORS® Pro Standards Committee.

Those changes will improve professionalism, increase consumer satisfaction and reduce com-plaints, she says.

“Consumers must see the value agents bring to the trans-action today,” says Read, of CR REALTOR® in Woodridge. “Agents can’t just be order takers, they need to stay abreast of the latest develop-ments and use what they’ve learned

to make every client’s experience great. If more agents would commit to excellence, then we wouldn’t have 10 percent of them doing 90 per-cent of the business.”

Managing brokers set the tone for continuous learning. “We have to get managing brokers on board to make it work,” says Read.

“Two years ago, I was the chair of the Pro Standards Committee and one of the questions I asked state committee members was: “What per-centage of bad behavior gets reported as a com-plaint? Their answer was less than 5 percent. That precipitated the citation program for ethics com-plaints, a program designed to expedite the process.

More real estate professionals need to live by The National Association of REALTORS® (NAR) is working on an initiative for additional efforts to raise professionalism across the country, Read said.

CURRENT ILLINOIS PROGRAMSEducating members about the Illinois

REALTORS® dispute resolution programs is important, whether the issue is resolved through the Ombudsman Program or the Ethics Citation Program, says Becky Carraher, Illinois REALTORS® Professional Standards Coordinator.

The Illinois REALTORS®Ombudsman Program uses real estate experts who are commit-ted to the REALTOR® Code of Ethics to resolve disputes between consumers and REALTORS® and between association members. The Ethics Citation Program allows REALTORS® and consumers working with REALTORS® to file complaints stemming from violations of cer-tain Articles and Standards of Practice of the REALTOR® Code of Ethics.

Carraher says that holding REALTORS® accountable for violations is critical, too. Members also have to be willing to report violators so that the same mistakes aren’t made repeatedly.

A FORECASTKate Sax, director of Professional and

Ethical Practices, Mainstreet Organization

REALTOR® Leaders weigh in:

2016 President MIKE DREWS:

“Illinois REAL-TORS® has been com-

mitted for the last 100 years to advocacy, education and ethics. We’re going to continue that fight to protect private property rights and make sure that our REALTORS® are the most educated and professional that we can possibly be and we’ll continue that for the next 100 years.”

2012 President LORETTA ALONZO-DEUBEL:

“Technology is going to lead the way and

it’s already starting and changes are happening. We’re becoming more global, not just doing real estate in Illinois but also in other countries. It will become second nature for us to do that.”

2006 President STAN SIERON:

“I think we may be fight-ing the same

battles, but we could also try to be on the cutting edge and I think that’s one thing that our gov-ernmental affairs does. I think we can always be one step ahead and hopefully anything that comes up that could be detrimental to what we believe in, we’ll be able to fight that immediately.”

1999 President JEAN CROSBY:

"I believe there will be a day and time when

you will do all of your transaction — the clos-ing included — online. People won’t have to leave their homes. Instead of loans being funded in eight or 10 hours, they’ll be funded in 30 seconds. Technol-ogy is going to take us to a whole new level.”

Carrie Bey-Little

Chris Read

ILLINOIS REALTOR® October 2016 21

of REALTORS® (MORe), leads a department responsible for the enforcement of pro stan-dards in three associations: MORe, the Chicago Association of REALTORS® and the North Shore-Barrington Association of REALTORS®.

“It seems to me that NAR is try-ing to make the process more efficient as well as more stringent when there is non-compliance,” Sax says. “NAR recently required non-prevailing parties to pay an arbitration award within 10 days either to the prevail-

ing party or deposit the funds with the associa-tion while a procedural review is processed. This allows the prevailing party to be paid when there is no review of the process, but also allows the

association to make the payment to the prevailing party if the award is upheld after the review.

“This used to be a voluntary aspect of the Code of Ethics and Arbitration Manual in the Chicagoland area,” Sax says, “But it was difficult to enforce when the parties to the dispute were from different associations. It is now mandatory.

“I also see NAR making more move-ments towards ethics mediation,” she says. “They recently required all associations to offer ombudsman services which is similar, but does not provide any concrete sanctioning. An ethics mediator has more latitude in creating resolution, including discipline and payment to the com-plainant or a third party.”

— Bill Kozar, Content Marketing Specialist

The Future of LEGAL

When it comes to anticipating future legal issues, the best way REALTORS® can prepare is to read information from their national, state and local associations, says Betsy Urbance, Illinois REALTORS® Legal Hotline Attorney.

Preparations can include a thorough study of the REALTOR® Code of Ethics and Illinois Real Estate License Act, webinars, newsletters

and workshops from the Illinois REALTORS®.

“For example, REALTORS® should avoid unauthorized practice of law issues in complicated real estate transactions,” says Urbance. “They can assist with commonly used form

purchase contracts by completing business and factual information. Regardless of complexity, the member's expertise is in valuation, assessing market conditions, pricing strategies, advertis-ing, making effective use of contacts, and provid-ing other market-related information to help their clients make the best decisions and deals possible when buying, selling or leasing real estate.”

Q. Have any issues come up more frequently lately that need to be addressed?

She says: “From the Legal Hotline, I hear about more situations related to no service or limited service brokerage businesses in trans-actions. Our members should analyze how to serve their clients' best interests and be mind-ful of making independent business decisions for their own companies. It is important to note that Illinois statutes require brokers who are subject to exclusive brokerage agreements to provide a certain level of basic or minimum services during contract negotiations.”

Q. How have technological improve-ments affected our members legally?

“I am not sure what legal ramifications tech-nological advances have had on our members,” Urbance says. “However, our members should fol-low tech developments and apply their knowledge

of the License Act and the Code of Ethics to the way services are delivered. Generally speaking, legal constraints will still apply in the broker-age business in the same way as they have in the past ... just maybe in a different environment.

“In other words, contract negotiations might be carried out on an electronic platform with date stamps and/or encryption keys to use for signatures as opposed to paper contracts with ‘wet’ or pen and ink signatures,” she says. “The concepts as to what will be enforceable are similar (the age-old legal principles con-tained in the Statute of Frauds still apply) but proving a provision or signature might become necessary (and be accomplished by different means) should anyone deny a provision or sig-nature remain the same.”

Q. What about social media -- has anything new come up?

Debbie Prodehl, chair of the Business Issues and License Law Committee, says, “It seems as though social media is becoming more of an issue as many of our members are not understanding what they can and cannot do. How

they need to identify themselves along with their brokerage. We have to continue to educate our members.”

Urbance says: “Again, same concepts, gov-ernance and restrictions apply, just different delivery methods. REALTORS® must bear in mind that when they are engaged in their real estate brokerage business, even via a social media outlet, legal and ethical restrictions and require-ments still apply. For instance, if a REALTOR® is advertising a listing on Facebook, the sponsoring brokerage company name and the information included must be truthful and complete.”

— Bill Kozar, Content Marketing Specialist

1997 President PAT DALESSANDRO:

“I can only begin to believe that technol-

ogy will be so advanced that you are going to be able to stay in the living room and look at your television, smartphone or whatever they have at that time and take a three-dimensional, virtual walk through of the property. I also believe that housing af-fordability will become more attainable because of improvements in con-struction and design.”

CEO, Mainstreet Orga-nization of REALTORS® PAM KRIETER:

“If we continue with this quest for profession-

alism and raising the bar and code of excellence I sense that we may be smaller than we are, but we’ll be more fine-tuned. I feel that by having that cohesiveness and a smaller group potentially of high level profession-als, we may find that is a big enough voice.

2010 President MIKE ONORATO:

“As a student of history, it just seems like

issues come and go. Bad ideas keep com-ing back around and we’re going to have to continue to deal with those in the govern-mental affairs arena. “

2015 President JIM KINNEY:

“Technology is changing things. The exciting

thing is there are always new things on the hori-zon for us to be aware of, but the flip side of the coin is, it can be a little scary. That requires us to have a good leadership team and a good orga-nization to protect and defend our rights.”

— Comments taken from video interviews for the Illinois REALTORS® 100-year anniversary.

Kate Sax

Betsy Urbance

Debbie Prodehl

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Building Global ConnectionsIllinois REALTORS® Consulate General Liaison Program Looks to Grow Engagement By Sharon Gorrell, Illinois REALTORS® Global Working Group Staff Liaison

If you have traveled abroad at some time in your life, you may have heard of the term “consulate.”

The U.S. has consulates and embassies worldwide and for most people, the term consulate brings to mind a place they can go when they are in a foreign country and there is some type of trouble or need.

This visit could be the result of a lost passport, a crazy night that winds up in a conversation with the local police (no judgement here), maybe you got injured and need a doctor, or it could be something as serious as an invasion, political turmoil or national disaster. No matter what the situation, consulate offices or embassies are where Americans abroad go when we need some type of help.

But what many people don’t realize is the role consul-ates play in developing business and economic partnerships for their country and promoting their nation’s arts and culture abroad. Almost every nation has a consulate office somewhere outside of its borders.

Illinois is host to over 80 foreign consulate offices with roughly 60 that include a full-time Consul General. He or she is an appointee of their government and is in charge of their country’s commercial interests and the well-being of their citizens who are living and working in the country they are assigned.

The commercial and economic development portion of their role is where Illinois REALTORS® come in. Illinois REALTORS® is an organization that has a core value of pro-moting and protecting the real estate industry here in Illinois and the U.S. Part of that goal is achieved through advocacy efforts in all levels of government.

However, now that our industry, like most others, has become more “global,” the association leaders felt that it was

time to begin building relationships that could help expand the Illinois real estate industry’s global footprint.

As companies expand or move, technology “shrinks” the world. Currencies and political climates fluctuate and cross-border investment and resulting employment is increasing. According to the 2016 IBM Global Location Trends Report, the Chicago metropolitan area is the top U.S. destination for foreign direct investment.

In order to capitalize on that trend, the REALTOR® brand needs to be prominent and to do that Illinois REALTORS® cre-ated the Consulate Liaison program. What started as an eight-person team, has recently expanded to include eight additional liaisons. Each liaison fills out an online application on the asso-ciation’s global webpage and is appointed by the association’s president. Their role is to be the face of the REALTOR® brand, foster the use of a REALTOR® by foreign investors and pro-mote Illinois as a place to live and work.

The liaisons have been building and developing relation-ships and have received a welcomed response from the offices.

The growing program began as the vision of 2016 Immediate Past President Jim Kinney, vice president of luxury home sales for Baird & Warner in Chicago. Kinney said he would like to see the program expand and encourages other Illinois REALTORS® to apply.

“This program is gaining popularity across the country. A local association in Florida is now inquiring how we did it and wants to replicate it,” he said. As we continue to grow the program here in Illinois, please consider taking part. If you have a relationship or ties to a foreign country and culture, let us know. Simply fill out the online application, we are excited to be “expanding the tent” both within our organization and throughout the globe!

Are you interested in serving as a Consulate General Liaison?Illinois REALTORS® is looking for members who have international connections and a passion for sharing the news about Illinois’ real estate market. Learn more about the program and find an application at www.illinoisrealtors.org/cglp

Illinois REALTORS® Consulate General Liaisons

Sonia AnayaMexico

Delmy Economos Honduras

Mike EmeryAustralia

Marsha Collins-Mroz

Greece

Dany NovakovichSerbia

Vicky Sampah Rwanda

Pradeep ShuklaIndia

Vicky SilvanoPhilippines

Andy VelkmeLatvia

Maurice Hampton Canada

Jana HerdovaCzech Republic

Jim KinneyUnited Kingdom

Don PasekPoland

Michelle ShangChina

Matt SilverIsrael

Nancy SuvarnamaniThailand

ILLINOIS REALTOR® October 2016 23

24 www.illinoisrealtors.org

ead news headlines in recent years and you’ll notice that cyber criminals have taken a

growing interest in real estate transactions, REALTOR® websites, social media accounts and the activities of homebuyers and sellers.

Tech-savvy criminals might try to hack into your compa-ny’s website and get access to you and your clients’ data. They might try to hijack your social media accounts or hack your email so that they can conduct a wire fraud scam and trick your clients into sending them money.

Justin Letheby, a technology trainer and a broker with Keller Williams Fox Valley in St. Charles, says the threats seem to be growing in relation to the real estate business itself. In other words, when business is good, the number of people interested in scamming agents and their clients increases exponentially.

“When you’re busy and you get a vague email saying, ‘Here’s an offer, please open it,’” says Letheby, “your first instinct is probably to click on the link and download the file.”

Unfortunately, that one move could launch a whole series of problems, from viruses to phishing scams. And while it may sound highly “non-techie,” Letheby says the best defense

against email scams is to simply pick up the phone and ask the sender if he or she meant to send you the message and/or attached file.

“That’s all it takes,” he says. “If that person says ‘no,’ then delete the message and move on.”

Honing Their Targets In many ways, real estate brokerages and other small- to

mid-sized businesses are particularly vulnerable to cybercrime, according the National Association of REALTORS®.

“Big-name breaches make good headlines, but smaller businesses make easy targets for online criminals. This is partly because many small-business owners believe they are “below the radar” for cybercrime and thus fail to implement safety measures to protect themselves from attack,” writes

NAR Associate Counsel Jessica Edgerton in the NAR article, “Legal: You’re the Ideal Target for Cybercrime,” available online at www.bit.ly/cybertarget.

In February, the Florida REALTORS® pub-lished a warning about a homebuyer who was asked to wire $34,000 to a scammer.

According to the REALTOR®, he had emailed a client a few weeks earlier about providing “an amount to wire within the next day or two.” A few hours later, the buyers received another email from the agent’s email account — one he never sent — that gave instructions on wiring an amount close to $34,000 (versus an anticipated $80,000).

A similar crime took place in Rhode Island, where a scam-mer hacked into an agent’s email account and tricked a buyer into wiring $13,000 to a bank in France.

Cyber criminals are also targeting real estate websites, according to Realtor.com’s “Did Your Listing Get Hacked?” (www.bit.ly/hackedlisting) On vacation rental sites, for example, scammers lift both text and photos from sites like HomeAway.com and VRBO.com and republish their own versions on other websites.

“Suddenly the person collecting the deposit or fees is not the homeowner,” Realtor.com warns.

The list of real estate-related breaches doesn’t end there. From social media to corporate websites to basic email, there are an abundance of possible entry points for cyber criminals.

Navigating a Dangerous Parking Lot Over the past year, 594 million consumers globally were

affected by cybercrime, with the average person losing 21 hours and $358 dealing with the incident, according to the most recent Cybersecurity Insights Report from the software security company, Norton (www.bit.ly/nortoninsights).

In the report, FBI Director James Comey, called the Internet, “the most dangerous parking lot imaginable,” and warned people to be just as aware of scams, compromised web-sites, malware, and other threats as they would be of a physical theft.

HackeD!

Justin Letheby

Jessica Edgerton

ILLINOIS REALTOR® October 2016 25

How to protect yourself and your clients from cybercrime on social media, email and the web By Bridget McCrea PASS

WORDS

p@$$w0rD

Up until recently, people often did not approach the Internet with the same heightened sense of danger as they would when dealing with threatening situations in real life, according to the Norton report.

This oversight is especially problematic for REALTORS®, whose clients trust them to keep sensitive information and documents secure before, during, and after the transaction. At the same time, agents need to be vigilant when monitoring their own websites, social media accounts and email.

“Hacking is rampant right now,” says NAR’s Edgerton. “Whether you’re talking about social media, email, or web, it’s all relevant for the REALTOR® who holds onto consumers’ personally identifiable information.” (By definition, personally identifiable information includes any data that could potentially identify a specific individual.)

Social media presents its own set of possible threats, according to Edgerton. “If someone hacks your Facebook and starts posting on your behalf,” she says, “it can create reputa-tional damage and a whole slew of other problems.”

Thwarting the CriminalsCybercrime can impact real estate agents on many different

levels, with web, social media, and email standing out as three of the top threats that REALTORS® should be aware of when communicating and transacting business in the virtual world.

Regardless of which approach the hackers take, your first line of defense will always be to change your password immedi-ately to stop the criminals from doing any more damage.

“This simple step is by far the fastest way to shut down the activity that’s taking place on your social media account or website,” says Letheby, who also advises agents and brokers to change their passwords regularly, and to use strong (i.e., with a good combina-tion of letters/numbers/capitalization, etc.) passwords.

Social Media StrategiesIf the attack involved a social media site — and if the pass-

word change didn’t completely solve the problem — then email or call the site’s customer service department and let them know what’s going on.

Letheby says the company may be able to temporarily “turn off” your account while it investigates the problem and figures out a solution.

“Ninety percent of the time changing your password will solve the problem of social media hacking,” Letheby says.

Once you’ve changed your passwords and/or enlisted the social media company’s help in dealing with the issue, Matthew Brewer, Illinois REALTORS® Director of IT, sug-gests creating one or more posts explaining what happened and apologizing for any inconvenience.

“If someone was posting on your social media site on your behalf, you’ll definitely want to explain what happened and suggest that anyone who may have ‘clicked’ on links (from the scammer’s posts) run a virus scan and also change their own passwords,” says Brewer.

Defending Your Email Over the last year, real estate professionals have reported

an upswing in a particularly insidious wire scam. A hacker will break into a licensee’s email account to obtain informa-tion about upcoming real estate transactions, writes Edgerton in another blog post, “ALERT: Wire Fraudsters Targeting Real Estate Transactions” (www.bit.ly/wirefraudsters).

After monitoring the account to determine the likely timing of a closing, the hacker will send an email to the buyer, posing either as the title company representative or as the licensee. The fraudulent email will contain new wiring instructions or routing information, and will request that the buyer send transaction-related funds accordingly.

Edgerton says NAR is advising all real estate profession-als to tell their clients about the scam and about email scams in general.

“Very often if a hacker gains access to an email account or a system, he or she will be able to collect enough infor-mation to very convincingly put together fake emails,” says Edgerton. “And these emails are not that easily distinguish-able from legit messages. They’re not the bad grammar and the weirdly-phrased scams that we’re all used to seeing and know how to recognize by now.”

Matthew Brewer

26 www.illinoisrealtors.org

Also, Edgerton says agents warn customers to never trust wire instructions that are delivered via email (and, as Letheby pointed out, a quick call to the sender to confirm the legitimacy of the email is sometimes all it takes to avoid a major problem).

“Email can be a wide open door for scammers,” says Edgerton, “so make sure your clients and everyone who you’re working with is using strong email practices.”

One good way to thwart the crooks who use email, according to Letheby, is by using an account that offers two-factor authenti-cation. Along with usernames and passwords, two-factor authen-tication requires a mobile device, smart card, or biometric data (such as fingerprints).

If an attacker tries to hack into your account with just a pass-word, for example, he or she would also need your mobile device or fingerprints to get in.

“If someone is trying to log in from a unique device, he can’t just randomly start keying in passwords and get lucky; he’ll need a code as well,” Letheby said.

Thwarting Website Hacks Posting home photos and details may seem innocuous enough

in today’s web-centric real estate environment, but if you don’t keep an eye on the activity that’s taking place on your websites you may find yourself falling prey to hackers.

Letheby says he sees the highest number of breaches taking place on do-it-yourself websites on platforms such as WordPress.

“If you hire a market leader to produce and host your site, the odds that it will get hacked are lower,” says Letheby. “Plus, if some-thing happens, you can just call the company and say, ‘fix it.’”

In most cases, he says the breaches happen because agents don’t update their plug-ins.

“If you keep up to date with your WordPress plug-ins and profiles, and update them even on a quarterly basis, the number of hacks will drop pretty quickly,” says Letheby.

In some cases, keeping your information and your clients’ data secure is just a matter of common sense. For example, Letheby says he’s consistently shocked by how many agents and brokers log into public computers, use the devices, and then forget to log out of their accounts.

“The simplest thing in the world that you can do to pro-tect yourself is to log out after using a cloud-based service,” says Letheby. “It happens way more than you would think and con-tinually amazes me.”

Like any other crime, Internet-related crime should be reported to appropriate law enforcement investigative authorities at the local, state, federal, or international levels, depending on the scope of the crime. Citizens who are aware of federal crimes should report them to local offices of federal law enforcement. Visit the Internet Crime Complaint Center to file a complaint at https://www.ic3.gov/default.aspx.

WAYs To StAy SMaRTIN A WORLD OF CHANGING TECHNOLOGIES 8

In its Cybersecurity Insights Report, Norton offers these eight tips for operating in a world where hackers and scammers can hit you from a number of different angles:

Choose a unique, smart, secure password for each account you have online.

Delete emails from senders you don’t know, and don’t click on attachments or links on suspicious-looking emails.

On social media sites, if an offer sounds too good to be true, it just might be.

Avoid clicking on posts that offer that “Free trip to Tahiti!” especially if they don’t come directly from a reputable, “official” trusted company page.

Always monitor your financial accounts for un-usual activity. If you see a charge that you didn’t make, report it immediately. Often cybercriminals will charge a small “test” amount before attempt-ing to drain your bank account.

Don’t put off updating your software. Yes, those update pop-ups are annoying, but those updates often contain important patches for dangerous security holes that cybercriminals could use to access your device.

Use a secure backup solution to protect your files and backup regularly so criminals can’t hold them for ransom.

Don’t rely on freeware for cybersecurity. You get what you pay for. And some freeware options that are meant to protect your information are even selling it to make money.

1.2.

3.4.

5.

6.

7.8.

MORE RESOURCES:For more information on cyberscams, as well as further information on cybersecurity best practices, NAR offers these online resources:

www.realtor.org/articles/request-to-redirect-funds-should-trigger-caution

www.realtor.org/topics/data-privacy-and-security

www.realtor.org/topics/risk-management

www.realtor.org/articles/internet-security-best-practices

www.realtor.org/topics/realtor-safety/articlesAbout the writer: Bridget McCrea is a business, real estate and technology writer in Clearwater, Fla. She can be reached at bridgetmc@earthlink.net.

Copyright Illinois REALTORS®. This information may not be reprinted in whole or in part without express written permission of the Illinois REALTORS®. Send reprint requests to info@illinoisrealtors.org.

.

www.illinoisrealtors.org/education 1-800-523-5077

* YOU DO NOT need to renew in 2017.Your managing broker license

renewal deadline is April 30, 2019.

*Sec. 5-70 (d) A person receiving an initial license during the 90 days

before the renewal dates shall not be required to complete the continuing education courses provided for in subsection (b) of this Section as a condition of initial license renewal.

Managing Brokers

licensed after

Feb. 1, 2017:

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The 24 hours must include 6 hours of Core (3 Core A and 3 Core B), a maximum of 6 hours of elective credit, and 12 Hours Broker Management CE (mandatory 12-hour interactive course).

Submit your renewal application with the $200 State of Illinoislicensing fee to the Illinois Department of Financial & Professional Regulation (IDFPR) by April 30, 2017. www.idfpr.com

Managing Brokers

licensed prior to

Feb. 1, 2015:

You will need to have taken 12 hours of CE betweenMay 1, 2015 and April 30, 2017

The 12 hours must include a minimum of 6 hours of Core (3 Core A and 3 Core B) and a maximum of 6 hours of elective credit.

Submit your renewal application with the $200 State of Illinois licensing fee to the Illinois Department of Financial & Professional Regulation (IDFPR) by April 30, 2017. www.idfpr.com

DOWNLOADOfficial Q&A and Checklist for the 2017 Managing Broker Renewal:

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The Ilinois REALTORS® Licensing & Training Center is your trusted source for state-approved real estate licensing and continuing education

courses (classroom, home study & online) including state-of-the-art interactive course webinars - you don’t have to leave home!

Illinois licensed attorneys with an “active” attorney registration are exempt from completing continuing education hours, but must submit the required renewal fee and application to the IDFPR. CE earned for disciplinary purposes may not be used toward your CE renewal requirements.

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28 www.illinoisrealtors.org

Mike Scobey | Assistant Director, Advocacy and Local Issues

REALTOR® ADVOCACY MEANS PROPERTY OWNERS WIN IN YOUR COMMUNITY

REALTORS® and local Governmental Affairs Directors (GADs) work hard to advance public policy that will enable more affordable homeownership and protect real property rights. Here are some recent examples of local successes and the GADs who led the charge.

Rockford offers tax refunds to promote housing growth

In March, a broad coalition of leaders from Rockford-area taxing bodies and the Rockford Area REALTORS® announced a new program to encourage investment in Rockford neighborhoods by refunding property taxes on dis-tressed or newly built home purchases for three years.

The Homebuyer’s Property Tax Refund Program offers buyers of qualifying foreclosed or short-sale single-family homes, as well as newly-built homes, in the city of Rockford a property tax refund for three years after the purchase. Homebuyers must be under contract by Dec. 31, 2016 and close by March 31, 2017. New construction must be under contract and close by Dec. 31, 2017.

Properties will be eligible for refunds from the taxing bodies that approve the program. Currently 80 percent of a typical Rockford homeowner’s property tax bill is paid to the Rockford Public Schools, city of Rockford and the Rockford Park District, which have all approved the rebate program.

As in many real estate markets, foreclosures have wreaked havoc and every Rockford neigh-borhood has been adversely affected. This prop-erty tax refund program shows the kind of cre-ativity and inter-governmental cooperation that taxpayers and voters demand. REALTORS® helped lead the way on this important initiative.

Learn more about Rockford’s Homebuyer’s Property Tax Refund Program at www.homebuyerstaxrefund.org/#home

Residential fire sprinkler mandates don’t play in Peoria

For more than a year, the city of Peoria’s Construction Commission has been studying 2012 building codes to replace the 2006 building codes currently used by the city.

While the entire suite of codes was under review, the major amendment to any recommended code was related to the 2012

International Residential Code, which included a mandatory requirement that all new single-family dwelling units have fire sprinkler systems.

Over a period of 16 months, the city con-ducted several public meetings. Throughout it all, Peoria REALTORS® were in attendance to make sure private property rights were pro-tected, consumer choice was preserved and hous-ing affordability was not negatively impacted.

Our message was simple: eliminate the sprinkler requirement for residential new construction, or at the very least, allow for optional installation of a sprinkler system.

After a lengthy building code review process, the Peoria City Council is expected to vote in October to adopt the 2012 International Residential Code with no mandatory residen-tial sprinkler requirement. However, homeowners do have the option to have them installed if they choose.

It is important to note that the city of Peoria is the last municipality in Peoria County to move to the 2012 codes, and REALTORS® have successfully advocated for optional sprinkler installation in each of those other communities.

Additional successesHere are some other recent examples of significant

“wins” at the local level that were the direct result of Illinois REALTORS® advocacy:

X Proposals to increase regulations on rental properties (including regular inspections and new fees) in the cities of Lockport and Braidwood were shelved.

X An overly broad and costly impact fee proposal in Carterville was stalled, and a new version (acknowledging REALTORS®’ and developers’ concerns) will be introduced later this year.

X An Evanston proposal for licensure of landlords was defeated.

X A Cook County proposal to eliminate an owner’s right to “use and occupancy” in eviction trial cases stalled.

X Negotiations in Sycamore resulted in lower development impact fees.

X Proposed Chicago regulations on “Airbnb” were modified to be less burdensome on short-term rentals.

Conor Brown, GAD for Rockford Area Assoc., Belvidere Board, Heartland REALTOR® Org. and Assoc. of Northwestern Illinois

Kristie Engerman, GAD for Peoria Area Assoc. and its Lamoine Valley Chapter, Bloomington-Normal Assoc., Mid Valley Assoc. and Quincy Assoc.

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

www.RPACnow.com

by the

NUMBERS50/50

Our REALTOR® PAC is recognized as one of the most bipartisan

PACs in the country, supporting both Republican and Democratic candidates.

0The number of dollars RPAC gives to candidates for U.S. President. RPAC dollars are best spent supporting REALTOR®-friendly candidates in local

government, state elections and races for the U.S. House and Senate.

#3700

House Resolution (H.R. 3700) passed the U.S. House and Senate, reforming Federal Housing Administration (FHA) restrictions on condo financing and helping to make homeownership more affordable to first-time and lower income buyers.

10% This tax has been stopped by a REALTOR®-supported coalition, effective lobbying and RPAC.

$3,500Estimated tax savings from the Mortgage Interest Deduction for the average taxpayer who owns a $200,000 home with a 30-year fixed rate mortgage of 5% (source: NAR). RPAC plays a key role in preserving the Mortgage Interest Deduction for American homeowners.

Just $20 can make a difference for your homebuyers and commercial property owners. That $20 is a

bargain for an insurance policy for your business.

$20

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THANK YOUIllinois REALTORS® members

who invested in RPAC this year! Are you among the 32,122 of our 44,000 members who have not?

RPAC is funded completely through voluntary contributions from members.

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A proposed tax on real estate advertising

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30 www.illinoisrealtors.org

• Earn 6 hours of CE

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Real Property Alliance, Chicago REALTORS® partner to help property owners

When Chicago property owners got their 2015 tax bills this summer, they got a shock.

The city increased its property tax levy by $543 million, and combined with a triennial reassessment process, bills soared 12 percent on average.

Seeing the concern the increases caused, Real Property Alliance, Illinois REALTORS®’ consumer advocacy foun-dation, partnered with the Chicago Association of REALTORS® to help prop-erty owners in the city understand what they could do to lower future tax bills.

Real Property Alliance and the Chicago association worked with Cook County Assessor Joe Berrios’ office to come up with an outreach program to help residents file tax appeals.

The Chicago association and RPA created a website, printed a brochure for REALTOR® members to use with property owners and produced a video explaining why taxes were going up and what steps residents could take.

The partnership plans a series of events at Illinois REALTOR® members’

offices in Chicago to help residents gather the information they need to file an appeal. While the tax bills for 2015 and 2016 have already been finalized in the city, an appeal can lower assessments in future years.

“We knew that Chicago residents were really upset by these increases,” said Pat Callan, a REALTOR® and chairman of the board for Real Property Alliance. “RPA at its core is an educational founda-tion, and helping inform property owners how they might be able to lower their tax bills fits nicely with our mission.”

The Chicago Association of REALTORS® has aided consumers with property tax bills before. During the recession, the association helped thou-sands of residents file appeals when hous-ing prices plummeted.

“CAR is always looking for ways to help homeowners, whether they cur-rently own homes or are in the market to buy,” said Dan Wagner, the associa-tion’s president and treasurer-nominee for Illinois REALTORS®. “The tax increase allows our members to help play a role in

advising property own-ers who are struggling to pay their bills and may be bewildered by the process to file an appeal.”

Illinois REALTORS® are a natural fit to explain the intrica-cies of Cook County’s property tax system to residents, said Brian Bernardoni, a local governmental affairs director for Illinois REALTORS®.

“Our members deal with tax issues daily as they serve clients, and they are deeply connected to the communities which are bearing the brunt of this tax increase,” Bernardoni said. “Having a trusted person to explain the tax appeal process can make a huge difference for a property owner.”

Online helpThe Chicago Association of REALTORS® and Real Property Alliance have a website to help guide property owners through the property taxappeals process.

www.RealPropertyAlliance.com/PropertyTaxes

www.RealPropertyAlliance.com/PropertyTaxes

PROPERTY TAXESHow you get taxed & How to see if you might be paying too much

The Chicago Association of REALTORS® represents nearly 13,000 members engaged in all aspects of the real estate industry.

Real Property Alliance is a non-profit foundation devoted to educating consumers about private property rights.

101Chicago

DID YOU KNOW? Did you buy your property less than three years ago? Because a property’s assessed value and, ultimately, its taxes are based on market value, a lower sales price could result in a lower tax bill.

If you fall in this category of homeowner, multiply the purchase price on your closing statement by 10 percent and compare that amount to the amount on your tax bill. If the quick math generates a dollar

figure lower than your assessment, you may want to file an appeal. If you file an appeal, make sure you include a copy of the closing statement.

WHAT’S MY SQUARE FOOTAGE?When a REALTOR® markets a home, they typically use a square footage calculation based on livable space in a dwelling. For assessment purposes, things are handled a bit differently. The Cook County Assessor uses a number based on the exterior perimeter of a home.

While a REALTOR® might exclude a garage from a square footage estimate, an assessor might include it in the perimeter calculation.

“Chicago Property Taxes 101” brochure

created by Real Property Alliance and the Chicago

Association of REALTORS®

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STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION

The ILLINOIS REALTOR® (ISSN-0744-2211) is published four times a year (January, April, July, October) for $3.00 per year by the Illinois REALTORS®. The offices of publication and the headquarters and general business offices of the Publisher, Gary Clayton, are located at 522 S. Fifth Street, P.O. Box 19451, Springfield, IL 62794-9451. The sole owner of the publication is the Illinois REALTORS® at the address listed above. There are no known bondholders, mortgage or other security holders.

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

Actual # copies single issue nearest filing

Total # copies (net press run)

45,551.75 45,938

Paid/requested subscriptions

43,942.25 44,457

Sales through dealers and carriers

0 0

Other Classes Mailed through the USPS

18.25 32

TOTAL PAID DISTRIBUTION

43,960.50 44,489

Free distribution by Mail 46.75 25Free Distribution Mailed at Other Classes

27.75 12

Free Distribution Outside the Mail

24.5 0

Total Free distribution 99 37TOTAL DISTRIBUTION 44,059.50 44,526Copies not distributed 1,495.25 1,412TOTAL 45,554.75 45,938Percent Paid 99.78% 99.92%

I certify that the information stated is true and complete.

Jon K. Broadbooks, Editor

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ILLINOIS REALTOR® October 2016 31

YES, WE HEAR YOUBy Rebecca JensenPresident and CEO of Midwest Real Estate Data (MRED)

As our valued customers, you deserve to be heard. When I first arrived a year and a half

ago (that long already!), I had certain ideas and goals firmly planted in my mind, for implemen-tation immediately upon my arrival at MRED. These concepts arose from the lessons I learned from great teachers, fantastic mentors, and my experiences in Utah. Not everything I have done

was successful, but it’s led me to the great place I’m so proud to be in today.

Plenty of luck and hard work have created great results, but none of it happens if I did not make my No. 1 priority the imple-mentation of a process of information gathering. What do I mean by this? We have a system that results in MRED staff knowing what our customers think. It helps us to “predict the future” and involves utilizing a number of difference “intelligence” tools:

• Net Promoter Score (NPS) surveys – Very short, two ques-tion surveys that MRED posts to all of our customers twice a year on our MLS system. These are designed to measure cus-tomer satisfaction and give our users an opportunity to sound off. Every response recorded in our NPS surveys is reviewed, considered and responded to. That’s thousands of comments, twice a year!

• Focus Groups – We routinely form Focus Groups to tackle big issues necessitating deep customer feedback and direc-tion. The Private Listing Network (PLN), Transaction Management and Commercial are three examples of Focus Groups that have had a significant impact on issues our Board of Managers need input on.

• Brokerage visits – I personally visit brokerages as often as possible. Typically the request is for an MRED update, but I have an ulterior motive! I’m there to find out what YOU are thinking about.

• Event sponsorship and attendance – MRED’s presence at events throughout Illinois is not only to show support for our partner associations and their members, but to gather intel about the issues that are on the minds of our customers.

• Help Desk cataloging of calls – Every call made to our Help Desk is tracked in our HEAT system. Recommendations for MRED to consider are recorded in the same system, and staff reviews each suggestion for possible implementation.

• Strategic Planning – We invite our brokerage owners and association partners to participate in our strategic planning sessions, in yet another way we are sure to hear what they have to say.

Whew! I hope that convinces you we have a number of very effective ways to hear you. As we all look forward with anticipa-tion, we are confident we have a process in place that gets us the information from you that we need. By the way – we also “read” you. We always welcome your input via email, even snail mail.

As always, MRED stands ready to provide great training assis-tance and award winning customer service to anyone who contacts

us. Please feel free to get in touch with our Help Desk at 630-955-2755 or help.desk@MREDLLC.com with any and all questions. “Hear” you soon!

SPONSORED CONTENT FROM ILLINOIS REALTORS®’ CENTENNIAL SPONSOR

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32 www.illinoisrealtors.org

Number of requests for an ombudsman

received

Resolved to the complainant’s satisfaction

Complainants that stated they would pursue an ethics complaint

Complainants directed to seek

legal advice

OMBUDSMEN FIND SUCCESS INSETTLING DISPUTES

Business ethicsContractsLack of communicationCode of EthicsProperty management/leasingEarnest moneyProcuring cause

Top issues addressed by an Ombudsman

Code of EthicsBusiness ethicsContractsLack of communicationProperty management/leasingEarnest money

2015 2016

Jan 1 to July 31, 2016

If you would like to apply to be an ombudsman volunteer, fill out the form at http://bit.ly/2bI8OYs

Deadline is Oct. 15, 2016.

The Ombudsmen Team (front row, left to right): Illinois REALTORS® Rebecca Carraher and Ombudsmen Bob Floss, Chris Read, Kimberly Noyes and Yvonne Seffer. (Back row, left to right) Terry Umecker, Wayne Paprocki, Ginger Westin, Georgia Pierini, Kimberly Trimmel, Linda Pilmer, Eleanor Nastepniak, Joan Sandrik, Debra Hymen, Stephen Hudson and Matt Difanis. Not pictured: Connie Conway, Karen Irace, Shari Kindle, Nancy Koch, David Levin, Molly Sabatino, Glenn Swick, Sandy Workman and Angie Zahn.

2016 Jan 1 to

July 31, 2016

2015 Jan 1 to

Dec 31, 2015

Photo credit: Matt Difanis

15 7

198

128

68%

70%

32 10

The Illinois REALTORS® Ombudsman Program works to resolve disputes between consumers and REALTORS® and between association members and 2016 is expected to be the strongest year

yet. As of July, the program is on track to successfully resolve more ombudsmen requests.

ILLINOIS REALTOR® October 2016 33

MARKET WATCHQ & A WITH GEOFFREY J.D. HEWINGS

Illinois REALTOR® magazine talked to Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois, about the state’s housing market and some of the factors affecting home sales and prices.

Q: What do con-sider the biggest

issue facing the housing industry right now?Hewings: Uncer-tainty. The presiden-tial election presents

a stark choice with important implica-tions on the health of the economy. Given the fact that housing is now fol-lowing the economy much more closely than the pre-recession period, it is likely that this will probably dampen sales and price gains through the end of the year.

The other main issue concerns Millennials and their reticence to enter the housing market, dampening the number of first-time buyers. Huge college debt burdens are frequently mentioned as one of the main causes, but another important fact is their penchant for an urban central-city lifestyle that is focused on flexibility (renting homes, cars, bicycles etc.)

Q: It seems like low inventory has been an ongoing issue affecting

markets throughout Illinois. Homebuild-ing has picked up modestly, which will add to the supply, but many potential sellers seem reluctant to list. What do you at-tribute that to and how do we get past it?Hewings: The first issue noted above is a major issue. Even though job growth has been reasonably robust in 2016, many consumers are still wary about moving up in the housing mar-ket and are therefore reluctant to list properties. In many months this year in Chicago, growth in sales and prices from foreclosed property inventory were major contributors — in one month the sole source — of price increases. In many parts of the country, a large percentage of homes are still “under-water” and until prices recover enough

to yield positive returns, homeown-ers are going to be reluctant to list.

Q: How long could it take to get inventory levels back

to where they should be?Hewings: There is a trade-off. Dur-ing the recession, time on the market was extended up to 18 months creating disincentives for people to list homes. I think the issue is reluctance of cur-rent homeowners to venture into the market and incur significant transac-tion costs to upgrade to a new/larger/differently located home. Consumers are still reeling from the memory of the recession and the political hiatus in federal elections and the state’s fis-cal mess, are forcing more people to wait and see. Time on the market has come down to 2-4 months, so in one sense the market might be considered to be operating at pre-recession levels based on this criterion. I do not see a lot of latent demand in the data – I am not sure it is an inventory problem.

Q: Could the trend begin to affect housing affordability going forward?

Hewings: Anytime prices start mov-ing upward, the issue of affordability looms. The doom and gloom perspec-tive is that many have been forced out of the market – evidence of declin-

ing homeownership rates. But pre-recession, we all know that these rates rose for artificial reasons and were not sustainable. We’ll monitor this more intensely over the next 6-9 months.

Q: For the most part, this year’s Illinois market has seen price

gains and sales growth, but have these other economic factors kept it from being more robust? Could the trend continue through the rest of the year?Hewings: There is no doubt that the continuing stalemate in Springfield has dampened job growth. During the last six months, Illinois’ employ-ment growth rate has been fallen way behind the nation’s each month. Job growth and housing sales are closely linked — if we do not create jobs, we are reducing the size of the fiscal injection into the economy. Firms seem more willing to expand employment in plants in states other than Illinois and that is a worrying trend that neither House Speaker Michael Madigan nor Gov. Bruce Rauner seem to appreciate.

Q: How much of a factor are foreclosures having

on the Illinois market now?Hewings: Much less; as a percent-age of sales, they are declining such that the reduction in the size of the inventory has slowed. It is now un-likely to return to pre-recession levels in the foreseeable future. However, it appears not be having a dampen-ing effect on prices – in many months the rate of increase in prices of fore-closed properties has been higher than regular properties, even though they are still some distance apart.

Hewings

34 www.illinoisrealtors.org

REALTOR® COMMUNITYFOLLOW US:

Peoria CEO Dallas Hancock Honored for Association LeadershipDallas Hancock, CEO of the Peoria Area Association of REALTORS® since 1985, was awarded the 2016 Rhino Award from Illinois REALTORS® in July. The annual award honors an association executive for longstanding strength, leadership, service and loyalty to the profession.Hancock receives the award from Illinois

REALTORS® CEO Gary Clayton

Patrick Dalessandro to serve as 2017 NAR Region 7 VP

Dalessandro, broker-owner of Coachlight Realty & Property Management in Niles, will serve as Regional Vice President for Illinois, Indiana and Wisconsin.

Ruggieri named president-elect for National Council of Exchangors

REALTOR® Alex Ruggieri of SVN-Ramshaw Real Estate in Champaign has been appointed president-elect of the National Council of Exchangors (NCR) and will serve as the organization’s president in 2017. Ruggieri is a frequent contributor to Illinois REALTOR®, writing on commercial real estate issues.

Three Rivers uses $1,200 grant to help Coal City farmers’ market growThe Three Rivers Association of REALTORS® used a NAR Placemaking Grant to help a local farmers’ market get started. The grant covered the costs of tents for the market vendors. #REALTORParty #IL

Congressmen Foster and Roskam meet with Illinois REALTORS®

U.S. Reps. Bill Foster (IL-11) and Peter Roskam (IL-6) hosted community meetings with REALTORS® during the summer. Foster met with REALTORS® in Romeoville to discuss FHA appraisals and housing. Roskam held an event in West Chicago to talk about issues affecting local real estate. Plainfield REALTOR® Jeff Gregory is the Illinois REALTORS® Federal Political Coordinator (FPC) for Foster and Wheaton REALTOR® Pat Callan is the FPC for Roskam.

Greater Gateway presents $1,500 check for Collinsville project The Greater Gateway Association of REALTORS® used a NAR Housing Oppor-tunity Grant grant to help the Collinsville Community Collaboration host a local housing opportunity seminar. #REALTORParty #IL

ILLINOIS REALTORS® ATTEND REPUBLICAN AND DEMOCRATIC NATIONAL CONVENTIONSRepresentatives from the Illinois REALTORS® attended the Republican National Convention in Cleveland and the Democratic National Conven-tion in Philadelphia this summer. The conventions offer a chance to meet face-to-face with top policymakers in an informal setting.

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All course work must be taken through the Illinois REALTORS® Licensing & Training Center except the ePro Designation Course. All course work must be completed in less than 5 years. All courses require a 70% passing score on the exams. Most courses are licensed for CE credit. All on-line courses will have the option of either on-line proctoring or at one of our approved proctor locations. There is a $15 fee to retake an exam, with a maximum of two test attempts before being required to re-take a course. No renewal fee is required for the GRI designation. GRI is a lifetime designation.

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The GRI Grad Course is only open to those who have already earned their GRI designation.

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