RAPAC Major Investor Event

On February 8th we held a RAPAC Major Investor Event at Hacienda del Sol in Tucson to acknowledge and honor the 2023 investors, and to learn about the program and key issues from our presenters, TAR President, Catherine Wolfson, Tim Beaubien, Director of Legislative and Political Affairs, AAR, and keynote speaker, Kitty Wallace, NAR 2024 REALTOR Party Fundraising Liaison. New and returning investors committed to $30,000. for 2024. Learn more about RAPAC and investing on our website. Click HERE.

STRENGTHENING TRANSPARENCY IN THE RESIDENTIAL REAL ESTATE MARKET

Home ownership is a source of financial security for millions of Americans, but the non-financed residential real estate market has also long attracted those seeking to anonymously hide or launder illicit proceeds. Illicit and other criminal actors exploit this regulatory gap to hide ill-gotten gains from narcotics trafficking, corruption, human trafficking, fraud, and sanctions evasion. Left unchecked, this activity can distort housing market prices and make it more difficult for the average American to afford a home.

On February 7, FinCEN issued a Notice of Proposed Rulemaking to combat and deter money laundering in the U.S. residential real estate sector by increasing transparency. The proposed rule would require certain professionals involved in real estate closings and settlements to report information to FinCEN about non-financed transfers of residential real estate to legal entities or trusts. FinCEN’s proposal is tailored to target residential real estate transfers considered to be high-risk for money laundering, while minimizing burden.

SUMMARY:

FinCEN is issuing a proposed rule to require certain persons involved in real estate closings and settlements to submit reports and keep records on identified non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis. Transfers made directly to an individual would not be covered by this proposed rule. The proposed rule describes the circumstances in which a report must be filed, who must file a report, what information must be provided, and when a report is due. These reports are expected to assist the U.S. Department of the Treasury; Federal, State, and local law enforcement; and national security agencies in addressing illicit finance vulnerabilities in the U.S. residential real estate sector and to curtail the ability of illicit actors to anonymously launder illicit proceeds through the purchase of residential real property, which threatens U.S. economic and national security.

Publication Date:02/16/2024
Agencies: Department of the Treasury Financial Crimes Enforcement Network

Access to Home Ownership Top of Mind in Washington

Making homeownership more accessible has been one of NAR’s top advocacy priorities for years, and REALTORS^® are ensuring it’s top of mind for policymakers, too.

Since NAR released its groundbreaking report in 2021 revealing America’s underbuilding gap of at least 5.5 million housing units, REALTORS^® have led the call for a once-in-a-generation response to solve this crisis.

The urgency was evident at NAR’s annual Policy Forum, hosted last Thursday, February 8, in Washington, D.C. The capacity crowd included housing and economic experts, policymakers, and industry stakeholders committed to addressing the challenges hindering homebuyers.

From the historic inventory shortage to high interest rates, regulatory obstacles, fees, and lending issues, the panelists outlined the current housing market landscape and discussed how technology, innovation, and legislative policies can help keep homeownership within reach.

NAR continues to advocate for multiple legislative solutions to make homeownership more accessible, including:

The bipartisan Neighborhood Homes Investment Act, which attracts private investment for building and rehabilitating owner-occupied homes through tax credits.
The bipartisan Choice In Affordable Housing Act, which creates incentives for housing provider participation in HUD’s Housing Choice Voucher (HCV) program.
The bipartisan Credit Access and Inclusion Act, which expands credit reporting for Americans with limited credit histories.
The Yes in My Backyard (YIMBY) Act, which encourages communities to build affordable housing through the Community Development Block Grant (CDBG) program.
The bipartisan More Homes on the Market Act, which incentivizes more long-term owners to sell their homes by increasing the maximum amount of capital gains a homeowner can exclude on the sale of a principal residence and annually adjusting it for inflation.
The Affordable Housing Credit Improvement Act or legislative provisions to expand the Low-Income Housing Tax Credit and encourage investment in creating and preserving affordable housing.
Increasing the $10,000 cap on the state and local tax (SALT) deduction and eliminating the penalty for married taxpayers filing jointly.

At the end of January, those final two priorities gained momentum when the U.S. House of Representatives passed a long-shot bipartisan tax bill. While business-related tax incentives and the child tax credit are the focus of this legislation, it also includes expansion of the Low-Income Housing Tax Credit among other pro-real estate provisions. Additionally, it greased the wheels on a long-stalled vote to increase the SALT deduction.

The complicated politics of these issues make it difficult to predict whether the tax bill can pass the Senate, and whether the standalone SALT bill will be considered on the House floor. However, the inclusion of these items in ongoing conversations on tax reform demonstrates the strength of REALTOR^® advocacy in ensuring lawmakers understand the importance of these policies.

Of course, we also continue to work with Congress to extend the authority of the National Flood Insurance Program (NFIP) and ensure other vital housing programs do not lapse as the next government funding deadlines approach on March 1 and 8.

NAR will continue advocating for solutions to protect and expand homeownership. We can’t wait to see many of you in Washington D.C. in May for the REALTORS^® Legislative Meetings, where we will return to Capitol Hill and share with lawmakers how pro-real estate policies benefit their constituents and the American economy. Mark your calendars – registration opens Feb. 14!

Thank you for the crucial role you play in expanding the American Dream.

Video: How to Explain Real Estate Compensation to Clients

Talking about money is complicated and sometimes stressful. Talking about the complexities of your real estate compensation can be even more difficult. Check out this animation for an easy approach to explaining how you get paid. Share widely and use with clients who might want the visual guide. The National Association of REALTORS® also encourages the use of buyer representation agreements to reinforce expectations for agents’ pay and services.

Learn more on the NAR website.

MASIELLO V. ARIZONA ASSOCIATION OF REALTORS® ET AL.

In October 2023, the National Association of REALTORS® received an adverse verdict in a class action anti-trust lawsuit in Missouri. Following that verdict, Plaintiffs’ attorneys began filing copycat lawsuits all across the country. The copycat lawsuits often include state REALTOR® associations, local REALTOR® associations, MLSs, and brokerages.

Unfortunately, the Arizona Association of REALTORS® (AAR) has now been named in a copycat lawsuit of this nature, along with four of our local associations, and several corporate defendants. The claims asserted are similar to those advanced in other cases, which is that NAR and others conspired to artificially inflate buyer broker compensation. This argument is utterly false and not supported by the evidence.

Regarding the lawsuit recently filed in Arizona, the below questions and answers shed light on the Plaintiff, the claims asserted, the damages sought, and the NAR rules at the center of the case.

Read the full article on the AAR website.

Read the Post Verdict Talking Points from NAR on the Burnett Trial

Risk Tip: New Federal Reporting Requirement

Risk Tip: Did you know….

Arizona Corporation Commission announced a New Federal Reporting Requirement Under the Corporate Transparency Act.
The United States Congress has passed the Corporate Transparency Act (CTA) to combat money laundering and terrorist financing. This Act mandates beneficial ownership reporting for corporations, limited liability companies, and similar entities registered in the United States. Entities formed or registered before January 1, 2024, must file an initial beneficial ownership report before January 1, 2025. Click here for more information.

Read all of the Risk Tips – Click Here

Why You Should Use a Real Estate Agent When You Buy a Home

If you’ve recently decided you’re ready to become a homeowner, chances are you’re trying to figure out what to do first. It can feel a bit overwhelming to know where to start, but the good news is you don’t have to navigate all of that alone.

When it comes to buying a home, there are a lot of moving pieces. And that’s especially true in today’s housing market. The number of homes for sale is still low, and home prices and mortgage rates are still high. That combination can be tricky if you don’t have reliable expertise and a trusted advisor on your side. That’s why the best place to start is connecting with a local real estate agent.

Agents Are the #1 Most Useful Source in the Buying Process

The latest annual report from the National Association of Realtors (NAR) finds recent homebuyers agree the #1 most useful source of information they had in the home buying process was a real estate agent. Let’s break down why.

How an Agent Helps When You Buy a Home

When you think about a real estate agent, you may think of someone taking you on home showings and putting together the paperwork, but a great agent does so much more than that. It’s not just being the facilitator for your purchase, it’s being your guide through every step.

An agent continually helps buyers in these situations:

Helped Buyer’s Understand the Process: Do you know the difference between an inspection and an appraisal, what each report tells you, and why they’re both important? Or that there are things you shouldn’t do after applying for a mortgage, like buying appliances or furniture? An agent knows all of these best practices and will share them with you along the way, so you don’t miss any key steps by the time you get to the closing table.
Pointed Out Unnoticed Features or Faults with the Home: An agent also has a lot of experience evaluating homes. They’ve truly seen it all. They’ll be able to pinpoint some things you may not have noticed about the home that could help inform your decision or at least what repairs you ask for.
Provided a Better List of Service Providers: In a real estate transaction, there are a lot of people involved. An agent has experience working with various professionals in your area, like home inspectors, and can help connect you with the pros you need for a successful experience.
Negotiated Better Contract Terms and Price: Did something pop up in the home inspection or with the appraisal? An agent will help you re-negotiate as needed to get the best terms and price possible for you, so you feel confident with your big purchase.
Improved Buyer’s Knowledge of the Search Area: Moving to a new town and you’re not familiar with the area, or you’re staying nearby, but don’t know which neighborhoods are most affordable? Either way, an agent knows the local area like the back of their hand and can help you find the perfect location for your needs.
Expanded Buyer’s Search Area: And if you’re not finding anything you’re interested in within your initial search radius, an agent will know other neighborhoods nearby you should consider based on what you like, what amenities you want, and more.

Bottom Line

If you’re looking to buy a home, don’t forget about the many ways an agent is essential to that process. Any hurdle that pops up, a negotiation that needs to take place, and more, your agent will know how to handle it while they make sure to minimize your stress along the way. Connect with a local REALTOR® to tackle it together.

This content was shared from an article in Keeping Current Matters.

Advocacy Priorities Front and Center in Anaheim

November 2023

Thousands of REALTORS^® gathered in Anaheim last week to Own the Moment at NAR NXT, The REALTOR^® Experience. Attendees packed the room at Monday’s Advocacy Scoop to hear the latest on the association’s priorities and successes at the local, state, and national levels.

“We have spent the last several years modernizing the advocacy operation, prioritizing the cultivation of relationships within our organization and with policymakers, industry partners, and state and local associations,” said NAR Chief Advocacy Officer Shannon McGahn. “The mantra we follow is what will advocacy look like in ten years, and how are we the first ones to get to it?”

McGahn and Jon Waclawski, NAR’s vice president of political advocacy, highlighted the vital role of REALTOR^® Party programs in moving our advocacy priorities forward:

Issues Mobilization Program: Grant approvals in 2023 have shattered the previous record by 20%. In ballot measures affecting the REALTOR^® industry, the pro-REALTOR^® position prevailed 75% of the time. “Rent control continues to be a major issue that our state and local associations are dealing with,” said Waclawski. “We already know we’re going to have two statewide ballot measures that involve rent control in California and Massachusetts. These are going to be very well-funded ballot measures, and so we’re going to deploy a large amount of our resources to help move the needle.”
Consumer Advocacy Outreach Program: 15 Consumer Advocacy grants have been awarded to state and local associations totaling more than $330,000. The Consumer Advocacy Outreach Program has seen a 29% increase in consumer Calls for Action sent by associations in 2023, jumping from 300k emails sent to consumers last year to 1.24 million emails sent so far this year.
Advocacy Everywhere Program: State and local associations have used the program to issue 68 Calls For Action, with 28 state CFAs and 40 local CFAs.
Community Outreach Program: 362 state and local REALTOR^® association requests for support were approved, totaling over $2 million. This is a remarkable 21.5% increase in funding from last year, and an early application surge led to program reaching maximum capacity on June 1.
State and Local Independent Expenditure Program: More than $6 million approved to support REALTOR^® champions in 2023, leading to 115 wins plus two leading in too close to call races. Just this month, on Election Day, we swept all four races in Seattle, all five in Ohio, and all four in New Jersey, and help secure the re-election of Orlando Mayor Buddy Dyer.
RPAC: We have a 35% participation number; that’s phenomenal,” Waclawski said. “There is no other organization that comes close to that number.”

McGahn also spoke with Bryan Greene, NAR’s vice president of policy advocacy, and Joe Harris, NAR’s vice president of government advocacy, about what the association is doing at the federal level to support homeownership.

“We recently engaged the Federal Reserve, working with the Mortgage Bankers Association and National Homebuilders,” Greene said. “We sent a letter essentially saying that the market needs clarity; we need to hear that there will be no more rate increases.”

Harris highlighted bipartisan legislative efforts on inventory and affordability. “The More Homes on the Market Act is an example of something that has gotten tremendous support and response from legislators because the issue is becoming more and more real as time goes on,” said Harris. “The More Homes on the Market Act, the Neighborhood Homes Investment Act, tax credits and incentives for private investment, and converting underutilized office spaces – what we’re doing with legislation like this is keeping the economy going.”

Shared in full from NAR

MLSs Urged to Stay the Course Amid Litigation Unrest

Staff from Tucson Association of REALTORS® attended the NAR Conference in California last week. The topic of the litigation was at top of mind with many attendees. We thought we would share this article from Stacey Moncrieff on the topic.

November 14, 2023
By: Stacey Moncrieff

Speakers at MLS Forum stress the importance of customer service, transparency and equity.

Litigation against the real estate industry was the talk in the aisles and meeting rooms at NAR NXT, The REALTOR® Experience, in Anaheim, Calif.—including at the MLS Forum, where more than 1,000 industry professionals from the brokerage, MLS and association worlds gathered Monday.

With multiple lawsuits challenging the MLS offer of compensation rule and clear cooperation policy, presenters in the MLS Forum didn’t sugarcoat the situation. But their uniform message was: Don’t waver. “Keep calm and keep serving consumers,” said Richard Gibbens, executive director of Southwest MLS. “Serving the consumer needs to be our collective North Star.”

That doesn’t mean ignoring what’s happening or the potential impact on the business, he said. Recognize the importance of transparency and disclosure, recognize that commissions are always negotiable. “And do what NAR has been saying for years,” Gibbens said. “Use buyer broker agreements. As I’ve heard it said, it’s very hard for someone to say they don’t understand how you were paid when they sign something that says how you were paid.”

An Equitable Market

What’s at stake in the litigation is an MLS marketplace that has not only brought efficiency and transparency to real estate buyers for more than 100 years but also promoted equity. Multiple listing services ensure that all buyers have equal access to the fullest range of properties for sale. When they’re used mindfully, they’re a powerful tool for fair housing, said Alexia Smokler, NAR director of fair housing policy, who led a fair housing panel during the forum.

Panelists offered ideas for incorporating equity into your real estate practice.

For Farrah Wilder, an educator and the former chief diversity, equity and inclusion officer for the California Association of REALTORS®, it’s critical to think about the words and images you use in listings. “There’s not a definitive list of words you can and can’t use, but think about it this way: Could someone look at the listing description or at the pictures and feel excluded?

“MLSs have a robust search function,” she continued. “Allow the system to help you with fair housing compliance.”

Rather than getting into the trap of telling buyers which neighborhoods you think they’d like, risking the chance that your unconscious bias could impact the relationship, she said, have that initial client meeting, learn what the client is looking for, and input it into the system. “Let the buyers have the agency to decide where they want to live.”

Josh Coleman, MLS enterprise business development manager for SkySlope, talked about how the platform has built guardrails into agents’ everyday business practices—for example, making sure communication is transparent and tracked, assuring that offers have been seen, and making sure agents are armed with objective data and buyers know where they stand.

Merri Jo Cowen, CEO of Stellar MLS, urged MLS officers in the audience to think about how to create the best user experience possible for consumers. For example, Stellar incorporates a tool for helping buyers find sources of down payment assistance. And she stressed the importance of fair housing education. “Everyone on our team goes through Fairhaven, C2EX and classes that address unconscious bias,” she said.

Content by Stacey Moncrieff. Stacey is executive editor of publications for the National Association of REALTORS® and editor in chief of REALTOR® Magazine.

2023 Boards Installation

On Friday, November 3, TAR held an event at the Pima Air and Space Museum, installing new 2024 Boards for Tucson Association of REALTORS® s, Multiple Listing Service of Southern Arizona, and Tucson Charitable Foundation. The event also celebrated member achievements with awards presented for out standing service and special recognitions.

2024 TUCSON ASSOCIAION OF REALTORS® DIRECTORS

OFFICERS: President: Catherine Wolfson, President-elect: William Arnold, Vice President: David Dynes,Treasurer: Steven Redmond, Immediate Past President: Kimberly Clifton.

BOARD OF DIRECTORS: Cindy Blass, Shawn Edgar, Jacob Friedman, Danae Jackson, Illa Krasnick, Matthew Tennyson, Michael Bock, Affiliate Director, Krystine Eppley, Non-Voting Liaison – TRCF, Georgina Plante, Non-Voting Liaison – WCR, James Robertson, Non-voting Liaison – CCIM

2024 TUCSON REALTORS® CHARITABLE FOUNDATION BOARD

OFFICERS: President: Krystine Eppley, President-elect: Nick Andress, Vice President: Nikki Halle, Treasurer: Glenda Grow, Immediate Past President: Victoria Lem

BOARD OF DIRECTORS: Jessica Alvarez, Lisa Benson, Chris Edwards, Monica Fields, Eunice Gillis, Denise King, Blaire Lometti, Corey Luckow, Marlo McCartney, Harvey Mordka, Lauren Smith

2024 MULTIPLE LISTING SERVICE OF SOUTHERN ARIZONA BOARD OF DIRECTORS

OFFICERS: President: Suzanne Rothman,

BOARD OF DIRECTORS: James Adams, John Anderson, William Arnold, James Bowman, Patrick Devine,
Amanda Elmer, Clare Fernandes, Kelly Hand, Andy Moreno, Cheryl Terpening

The event also honored and recognized its top-performing 2023 members who have excelled in the industry and in service.

The Tucson Association of REALTORS® Legacy Award was awarded to James J. Tsighis aka “J.T.” as the REALTOR® who best exemplifies the Tucson REALTORS® Mission: “Collaborating with innovators, leaders, professionals and communities to strengthen the real estate industry through education, communication, advocacy and service” by demonstrable contributions to the community which have made a significant positive impact on our quality of life; who have demonstrated excellence in leadership; and who are a source of positive influence and inspiration for others.”

The association’s 2023 award winners are:

REALTOR® of the Year: Claire Jean Prager, Coldwell Banker Realty

This award recognizes an individual member who contributes to TAR and the overall real estate industry as a strong leader and valuable asset to the general community.

Affiliate of the Year: Chris Edwards, Tucson Appliance Company

Affiliates are key non-REALTOR® members and supporters of TAR and are honored for serving with leadership and distinction.

Rising Star Award: Ashley Talavera, Tierra Antigua Realty

This award recognizes an individual member who has been a REALTOR® for three years or less, serves on at least one committee and has achieved or is working towards an NAR certification/designation.

Florence Johnoff Community Achievement Award: Sommer Green, NOVA Home Loans

This award recognizes an Affiliate company or individual and the collective efforts of its employees in community service and involvement in TAR. Johnoff was the association’s first woman president in 1977 and a leader in civic service.

Roy Drachman Community Achievement Award: Tana Lopez, Long Realty Company

This award recognizes a REALTOR® for their civic service and community involvement. It is named for Roy Drachman, a well-known Tucson REALTOR®, innovative commercial Developer, and generous philanthropist.

TAR Outstanding Service Award (3):

Amanda Elmer, Tierra Antigua Realty, Suzanne Rothman, KMS Realty, Annie Barmore, RE/MAX Select

This award recognizes individuals who serve TAR and the broader industry with distinction.

MLS Outstanding Service Award:

Jacob Friedman, Long Realty Company and Annie Barmore, RE/MAX Select

Committee of the Year: Bylaws & Policies Task Force

As TAR’s top-performing committee, these volunteer groups are honored for advancing the goals of the association.

EVENT PHOTOS: