Sunday, August 7, 2016

Which side of history does the Arizona Association of Realtors want to be on?

Mr. Patrick Lewis
Ms. Lori Doerfler
Arizona Association of Realtors Executive Committee (3 of 4)       

I am writing to you as three of the four members of the Executive Committee of the Arizona Association of Realtors.
As realtors you are well aware of the issues in HOA’s where 40% of Arizonans and 62 million of Americans live. I was fortunate to be invited to be a small part of a very exciting team working with Arizona State Senator Farnsworth to adopt a new approach to HOA issues. Relying on US Census data, this is a group of voters representing 62 million Americans (25mm households) who pay an average of $390 annually in assessments making the HOA community nationally a $1Trillion industry. Our blog below is being well received and is already unearthing severe pain for members, serious shortfalls in enforcement of the Patriot Act in regards to certain banks serving the HOA industry where Management companies are usurping the role of depositary institutions. As an ex banker myself, banking is supposed to be the most regulated of industries. Yet that $1trillion is being managed by the most unregulated of all industries, HOA Management Companies, whose basic skills rarely go beyond landscaping services.  

In addition, the legal liability for disclosure failures by HOA’s through these same Management Companies ends up with realtors being the first in line, together with your insurers. Unless radical steps are taken you and your members are underwriting what might be the next real estate and banking crisis. Yet a number of your members, including an Executive Committee Member, plus your Professional Standards coordinator, are featured in the Hall of Shame below – realtors who are closing their eyes to obvious disclosure issues. Please study the post below of Wednesday, August 3, 2016 - Disclosure in Real Estate in Arizona and California. This features an amazing California realtor who I suspect was speaking for your whole industry. Why would anyone buy or sell real estate from someone oblivious or uninterested in what Skip Outman had to say?
The coming months in Arizona, and nationally, are going to be “interesting”. I have no political ax to grind but think how much overlap there might be between the 40% of disaffected HOA members and the threshold one presidential candidate has reached.
I’d like to suggest that you, the realtors, might have to have to decide which side of history you want to be on.  

Also I understand you are having your annual meeting in September. According to our data base supplied by the Arizona Dept. of Real Estate, there are 44,660 active licensed real estate professionals in Arizona.
Given you have email contacts for all of those, how many of them do you plan to canvass to see what they think? They after all have the most to lose.
I’d welcome any feedback in any format.
Thanks/regards
Regards
On behalf of the Arizona Homeowners Forum
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Arizona Hall of Shame members (asked to unsubscribe)
Paula Monthofer                             High Peaks Real Estate LLC – AAR Executive Team                             
Cindy Roggeman                           AAR Customer Service Representative   
Tammy Franco                               AAR Professional Standards Coordinator
Colette Rosati                                Hunt Real Estate ERA      2016-2017 Director        
Christopher Cobb                           Cobb Realty LLC               
Nicole Hamming                            Glass House International                            
Colette Rosati                               Hunt Real Estate ERA                     
Heidi-Gaye Quigley-Larke                Heidi Gaye Quigley-Larke                            
Yvonne Coelet                               PMN Tenney Properties               
Judi Monday                                 GREEN VALLEY/SAHUARITA ASSOC. OF REALTORS                            
Sharon Applewhite                         Coldwell Banker Residential Br                  

Copy to:
National Association of Realtors Leadership
Tom Salomone                  National Association of Realtors President
Bill Brown                       National Association of Realtors President-Elect
Chris Polychron                National Association of Realtors Immediate Past President           
Dale Stinton                     National Association of Realtors Chief Executive Officer 
Elizabeth Mendenhall         National Association of Realtors First Vice President        
Michael Labout                 National Association of Realtors Vice President  
Michael McGrew               National Association of Realtors Treasurer           
Sherri Meadows                National Association of Realtors Vice President  

National Association of Realtors Staff
Charles Dawson                National Association of Realtors Managing Director, Regulatory Policy and Industry Relations - Banking
Vijay Yadlapati                 National Association of Realtors Senior Policy Representative - Banking  
Erin Stackley                   National Association of Realtors Legislative Policy Representative - Patriot Act     
Stephanie Spear                National Association of Realtors Commercial Regulatory Policy Representative - Patriot Act               
Jerry Giovaniello              National Association of Realtors Senior Vice President/Chief Lobbyist      
Jamie Gregory                  National Association of Realtors Deputy Chief Lobbyist   
Gary Weaver                    National Association of Realtors Vice President, Legislative Policy & Administrative Services               
Joe Ventrone                    National Association of Realtors Vice President, Regulatory Affairs and Real Estate Services               
Scott Reiter                     National Association of Realtors Vice President of RPAC Disbursements and Political Programs               
Marcia Salkin                  National Association of Realtors Managing Director, Legislative Policy      
Charles Dawson               National Association of Realtors Managing Director, Regulatory Policy and Industry Relations               
Tim Ryan                       National Association of Realtors Director, Financial Affairs & Budget         
John DiBiase                   National Association of Realtors Communications Director            
Colin Allen                     National Association of Realtors Legislative Representative -Arizona        
Lindsay Shuba                 National Association of Realtors Political Representative
Senator David Farnsworth
Dan Gardner, AZLEG
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Wednesday, August 3, 2016
Disclosure in Real Estate in Arizona and California
In 2002, we brought a house in California from a crook which, despite being advertised as brand new, transpired it had been almost completely destroyed by a fire and covered up rather than rebuilt.
When the roof stated leaking we had to put on a new roof. When the roof was removed it was riddled with fire. See the video of the roof removal by clicking HERE
After we had dismissed a defamation lawsuit for complaining to the Contractors Licensing Board by the crook via an anti-SLAPP motion, we moved to the real action being a three-year fraud case – the key issue being disclosure.
We had as expert witness, without charge, an amazing realtor in Skip Outman.  He taught disclosure to realtors on a state level but sadly has since passed on. Click HERE
On the stand in front of the jury, a fascinating debate on disclosure ensued with the defense attorneys arguing that the crook had met the minimum disclosure standard required by law. Skip, obviously with great thought, educated the jury that California was a state where real estate transactions, at least for residential real estate, was conducted by realtors – not attorneys.
Therefore, realtor’s standards applied – not the lower ones typically embodied in legal minimums.
When pressed further, Skip was rudely asked what standard of disclosure he would use. After a pause he said – "if it crosses your mind whether you should disclose it – you should disclose it".
The resulting $1.3million judgment is attached HERE which set another first for “long-dated rescission”. Realtors please take note because this disclosure standard covers, not just the house, but HOA matters as well. Especially those realtors in the “Hall of Shame” who want to close their eyes to this. Because Arizona emulates California in many areas.