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.
On behalf of the Arizona Homeowners Forum
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
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
Posting to www.arizonahoa.blogspot.com
Wednesday, August 3, 2016
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.