Oregon REALTOR Magazine

A PublicAtion of

SPRinG 2009

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alan & erik Keyes bend/central oregon, Jackson & Josephine counties 541-318-5009 ccb# 159503

casey livingston mcminnville, newberg, hillsboro, forest grove, 503-537-0415 ccb# 156934scappoose & st helens

chris livingston portland metro (multnomah co. West of the 503-682-3053 ccb# 151008Willamette, clackamas & east Washington counties)

bob riensche portland (multnomah county east of the Willamette) 503-452-7711 ccb# 154041

mike rowley salem (marion & polk counties) 503-856-8775 ccb# 153877

Spring 2009 | oREGon REAltoR® | 3

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Volume 44 number 1

ASSOCIATION OFFICERS

PRESIDENT Dannie Walker, CRB, CRS, ABR, GRIPRESIDENT-ELECT Alan Mehrwein, CRB, GRIIMMEDIATE PAST PRESIDENT Warren Lee DunnEDITOR/CHIEF EXECUTIVE OFFICER Andrea L. Bushnell, CIPS, RCEMANAGING EDITOR Joyce H. Beach, CMP, e-PRO

KEY OBJECTIVE GROUP CHAIRS

Business Issues John Hoops, CRSGovernment Affairs Lori Tydeman, CIPS, GRIPolitical Affairs Lisa Higbee, GRIProfessional Development Barbara Brown, CRB

Any information provided is intended for the general guidance and

information of OAR members. OAR should not be considered the

single authoritative source of information. The user is responsible for

verifying all important information for accuracy and completeness

before taking any action on the basis of the information.

The OREGON REALTOR® (ISSN 1059-2628, USPS 600-080) is pub-

lished quarterly by the Oregon Association of Realtors®, PO BOX

351, Salem, OR 97308-0351. Subscriptions cost $4 annually as part

of membership dues; $15 annually for nonmembers. Second class

postage paid at Salem, OR. Postmaster: Send address changes to

the OREGON REALTOR®, PO BOX 351, Salem, OR 97308-0351.

Advertising carried in the OREGON REALTOR® does not constitute an

endorsement of the products by the Oregon Association of Realtors®.

Exceptions to this rule are seminars sponsored by the Oregon

Association of Realtors®.

Printed on recycled paper.

StAtEMEnt of oWnERSHiP AnD MAnAGEMEnt. the oREGon REAltoR® (iSSn 1059-2628, uSPS 600-080) is published four times a year in Spring, Summer, Autumn and Winter by the oregon Association of REAltoRS®, P. o. box 351, Salem, oR 97308-0351. the editor is Andrea l. bushnell, P.o. box 351, Salem, oR 97308-0351. the owner is the oregon Association of REAltoRS®, P. o. box 351, Salem, oR 97308-0351. there are no bondholders, mortgages or other security holders.

EXtEnt AnD nAtuRE of ciRculAtion: Average number of copies of each issue published during the preceding twelve months: (A) total number of copies printed, 18,500; (b.1) Mailed outside-county paid subscriptions, 18,306; (c) total paid distribution, 18,306; (D) sample, free or nominal distribution, 0; (f) total distribution, 18,306; (G) copies not distributed, 194; (H) total, 18,500; (i) percent paid, 100%. Actual number of copies of single issue published nearest to filing date: (A) total number of copies printed, 20,000; (b.1) mailed outside-county paid subscriptions, 18,015; (b.2) paid mailed subscriptions, 963; (c) total paid distribution, 19,978; (f) total distribution, 19,978; (G) copies not distributed, 22; (H) total, 20,000, (i) percent paid, 100%.

O R E G O NREALTOR®

Joyce beachManaging Editor

Editor’s PodiumDelivering the Right tools, Right now

In this column in the winter 2008 issue of the OREGON REALTOR® I posed the question, “What new tools do we need and how can we work differently in light of our new economic paradigm?” At the Oregon Association of REALTORS® we are making the effort to build efficiencies into our work to help save time and money. It’s a reminder of how we learned to do things differently in the early 1980s; yes, as a staff member “back in the day,” I do remember.

Additional help in these difficult times is coming from the National Association of REALTORS®. NAR recently introduced a new program, “Right Tools Right Now.” The program has been developed to reach members and local and state associations with new and discounted tools to support us all right now.

I draw your attention to the information below that highlights some of the offerings that are part of this new program. I also encourage you to visit NAR’s website, www.realtor.org and click on the Right Tools Right Now link on the home page.

These are not easy times, but investment in your business still is a critical component for your future success. Using the market-focused tools that NAR is now providing in tangent with the Oregon Association’s affordable education offerings and risk management tools is a positive step. ■

“Our goal is to reach out to ALL members and All Associates with the Right Tools. Right Now.”

—The National Association of REALTORS®

The current state of the economy and housing market presents members with significant challenges — and many have turned to their association for help in addressing them.Members need help increasing business to ease the financial strain they are experiencing.Members need valuable tools that can help them in their daily efforts—today.How? NAR has developed an initiative that will provide a variety of publications, education, services, resources and tools for FREE, at cost, or at significantly reduced pricing, such as:• RSPS, Appraised, and International webinars – FREE• Risk Reduction online course – at cost• “It’s a Great Time to Buy” brochure – FREE• “It Pays to Work with a REALTOR®” brochure –FREE• RESPA Pocket Guide – FREE• Fair Housing Handbook – FREE• REBAC Homebuyer Toolkit – buy one, get one free• 2008 Profile of Home Buyers and Sellers – FREE• Real estate sales and marketing tips books – at costNAR is also rolling out a new program available to help educate REALTORS® on the foreclosure process: “Unlocking the American Eonomy: A Foreclosure Prevention & Response Program.”Watch for monthly additions to the products and services. All the details and downloadable materials are available at www.realtor.org/RightTools.

RIGHTTOOLSRIGHTNOW.

back cover photo: Wooden Shoe tulip farm, photo courtesy of barb iverson

4 | oREGon REAltoR® | Spring 2009

Editor’s Podium 3

President’s forum 4

Hotline Highlights 5

technology 6

Mexico Alive Discovery Weekend 8

oregon GRi 9-11

counselor’s corner 12

commercial Development 14

Government Affairs 16

fall GRi Designations 18

A taste of Portland 19

Events calendar 20

O R E G O NREALTOR

cover Story:

Social Networking and the Connection with Real EstatePage 6

P R E S I D E N T ’ S F O R U M

New Markets Bring Opportunitiesby Dannie Walker2009 President, Oregon Association of REALTORS®

Where are you mentally and financially? i believe the two are linked to your success.

Times may be tough for many but, for those who are willing to work smart these can be our most productive years. We only have one direction and that is forward. Continue to think about where you are and where you need to be to reach your goals. Keep your eyes forward and never look back. Failure is not an option.

In new markets there are always opportunities. If this is not a new market then what is it? Some things we have seen before but some are different. Many of us are getting lost in the changing times and the negative media. Be very careful where you take your thoughts, you just

might fall into a trap. If you are continually focused on the negative you will only see things that are not working. If you focus on what is working you will start seeing the opportunities in front of you.

Some of our fellow REALTORS® are loosing their cars, their homes and their businesses in these challenging times. When you’re down in the dumps and under the clouds you forget to look up when the sky starts to clear. When you’re weighted down by all the negativity going on around you, you forget what you still have. I recommend keeping your head turned up so you see the sun through the clouds and don’t miss the clearing.

What a great time to learn something new or try something different. Get up

and get out there! Expand your network and referral base. Go back to the basics. There are others out there in desperate need of your help. But how can you help them if you’re stuck in a rut? Try something new. Volunteer more. You have talents and skills you haven’t even touched upon yet. Read, study, learn . . . expand your mind!

I challenge you to find a new oppor-tunity everyday. Open your mind and pick a different thought and you might be surprised where it takes you. You and you alone get to choose what you think every moment of every day. I hope you think those thoughts and take those actions that bring you wealth and happiness. ■

Dannie Walker


H O T L I N E H I G H L I G H T S

When is the refrigerator really included in the sale?

Question: if the data listed in the MlS states that appliances (refrigerators etc.) are included and the seller receives an offer which does not include the appliances noted on the MlS data sheet, is the seller required to leave the appliances? The buyer’s broker did not include it in the contract and the listing broker mistakenly included it on the MlS data sheet.

Answer: This issue comes up time and time again! The information contained in the MLS is “advertising.” Advertising property as including specifically listed items such as the refrigerator (or whatever the applicable appliance at issue may be) defines what is being offered for sale. When you include a refrigerator in what is being sold, you are making representations about the property and what is included as part of the sale. Not following through on such representations raises misrepresentation issues under both common law and the Unlawful Trade Practices Act. The Unlawful Trade Practices Act makes it illegal to advertise one thing and then deliver another. You want to avoid violating this Act because attorney fees are recoverable for the successful litigant. This is one reason attorneys love the Unlawful Trade Practices Act.

This doesn’t necessarily mean the listing broker loses. This is a tort issue, not a contract issue, and therefore depends on who is to blame. If the seller didn’t know of the information contained in the MLS, the problem is going to fall on the broker

who represented something to the public that her client didn’t actually agree to. If the seller did agree to include the appliance and later changed his mind, the broker may fare better if there was no reason for them to know or suspect the seller wasn’t going to follow through with what was advertised in the MLS.

On the selling side the issue is dependent on the includes section in the MLS data sheet. First thing you have to think about is if what is included is really personal property rather than a fixture. Fixtures are considered real property and are included unless specifically excluded. The OREF form does include fixtures. Under that provision built-in appliances are fixtures and therefore automatically included in the contract. A refrigerator may or may not be a fixture depending on how it is installed. If it isn’t a fixture it is personal property. Now we are talking contracts, not torts.

The OREF form has a separate personal property provision, but does not expressly exclude personal property not included. No doubt the intent of the OREF form is to exclude personal property not specifically included, but not saying so just gives lawyers a chance to argue about that when someone advertises that something is included. All of this suggests that a wise buyer broker would include all personal property advertised, or name the items in the personal property provision, just to be safe. Not doing so could become a diligence

issue. Who knows how this would come out if actually tested? Much would depend on what other buyer brokers do about MLS includes in your market area.

Bottom line is that both brokers would have exposure depending on the

exact circumstances. What generally happens is that both brokers often get together to buy a refrigerator when this sort of thing occurs. People don’t like paying for other people’s mistakes. It is somewhat surprising that this continues to happen over and over even though, between the sale agreement and the MLS data language, it would

be relatively easy to prevent this kind of misunderstanding. For instance, instead of just having an includes provision in the MLS, it could say: The following personal property will be included if requested by the buyer at the time of the contract; it could say the following is included whether included in the sale agreement or not. Or, the sale agreement could exclude all personal property, including personal property included in the MLS data, unless expressly included in the sale agreement. It also could expressly include any personal property included in the MLS data. There are, of course all kinds of other solutions that could be created by working with the MLS data language or the sale agreement or both. Until a clear solution is reached, brokers will end up buying refrigerators every now and then. ■

Jenny PakulaDeputy CEO &

Asst. Gen. Counsel


T E C H N O L O G Y

Your family, friends and business connections are using many different social Websites to locate and share content. Some are reviewing articles, uploading photos and videos in addition to writing blogs.

What is a Blog? An online diary; a personal chronological log of thoughts published on a Web page; also called WeBlog, Web log. Typically updated daily, Blogs often reflect the personality of the author. Related terms: Blog, Blogged, Blogging v, Blogger n, (dictionary.com).

Other people use Blogs to write restaurant and product reviews. Social networks have become quite popular and very common among both the public and professionals. Many of your clients and business connections have accounts in one or more of social networks. Some of the more effective for real estate are:

LinkedIn: Is designed as a professional network. Build a network of past colleagues, friends, and industry experts. The Answer section helps you build a reputation as an industry expert. Ask people to write recommendations of your work and endorse you.

RealTown: Is one of the oldest and most respected real estate networks, featuring a variety of online communities as well as a wealth of community created content. This is a great place to be found and seen.

Social Networking and the Connection with Real Estateby Amy chorew, Matthew Ferrara Seminars

ActiveRain: Is a social network for real estate professionals. Great networking and referral building happens here. The Blogging platform has all the right tools to allow even the newest of real estate professionals to be found on the Internet.

Plaxo Pulse: Is a public profile that is not static; it’s constantly changing with an enriched aggregated stream of the content that you are creating all over the Web. You have refined control of what content and information you include in your profile. The result is that you have control and portability of your public identity.

Yelp: Use Yelp.com to find good restaurants, review insider information and perspective, obtain helpful tips and tricks for wherever you may be traveling to. Contribute to the community with your own reviews. This is a site where consumers are reviewing information from real estate professionals, especially what’s going on in the area.

Facebook: Try not to get caught up with the extraneous applications like “poking”, and “throwing sheep”. This site is very attractive to the X and Y generations. Post what you have to offer as a professional and invite consumers to read your Blog post. This site is where people want to be introduced and get to know you on their terms. Keep the information

Amy chorew

Continued on page 7.


quantitative and professional until they feel comfortable to reach out proactively.

MySpace: Another social network for the X and Y generations. If you have a strong client base in this area, you should consider having a profile page on this site as well.

7 Actions Steps to Social Networking Success

Follow these six action steps to become more connected, more plugged in, have more face time with Internet empowered consumers AND increase leads and become more efficient.

#1 – Connect: Add two contacts per week on either LinkedIn or Facebook. It’s a great way to connect with people and jump-start opportunities. If you simply add two people per week that will be 102 new people per year that are in your network and who you can possibly work with or who you can obtain referrals from.

Social Networking and the Connection with Real Estate . . . continued from page 6.

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The modern era of globalization began after World War II through growing political and economic alliances. Six decades later nearly one-third of all REALTORS® have completed international real estate transactions involving a seller, buyer and/or use of foreign lending. Although real property is stationary and localized, buyers, sellers and financing elements are often transitory. In 2004 Oregon welcomed 103,835 tourists, students and work-related im-migrants. There were 3,612 immigrants to Oregon who became U.S. Citizens that year. Ethnic and cultural diversity enriched our state with people from China, India, Mexico, Philippines, South Korea, Ukraine and Vietnam. In 2006, the Oregon Association of REALTORS® International Business Council established clear goals and guide-lines that mirror NAR-International

Operations. Today the Oregon Associa-tion of REALTORS® is the NAR-ap-pointed Ambassador association to the country of Vietnam and last year won the 2007 International Ambassador Associa-tion of the Year award. Our members have the benefit of learning more about real estate and business practices overseas and across borders, along with investment opportunities for clients right here in our own front yard. Through 2010 inbound migration is estimated to result in five million new households in the United States. The OAR-IBC is gearing-up to help brokers and other professionals identify ways to expand their business practices by reaching this growing market sector. ■

For more information on getting connected with the Oregon REALTORS® International Business Council, go to www.oregonrealtors.org/international or visit our blog: www.oregonrealtors.org/IBC/IBC_BLOG/ to view the latest posts.

BuildingOn WhatWe KnowJack R. ThomasChairman, OAR-IBC Advisory BoardCertifi ed International Property Specialist

G L O B A L V I E W

Spring 2008 | OREGON REALTOR | 19

#2 - Master a Real Estate Community: (Realtown or ActiveRain) create a real estate profile, introduce yourself and become involved. Make connections with influential members (BUT DON’T sell). Once you have made contributions and added perceived value, feel free to share your products or services with the other members of the forum.

#3 – Post on your Blog: Make sure you are adding relevant content a few times a week to your Blog. In today’s world where consumers are educating themselves on the Web, it is important you are perceived as a subject matter expert or consultant versus a sales person. We can find sales people everywhere, but if you are perceived as an expert at your craft you will attract attention to your product – YOU. Need I say more?

#4 – Answer: Answer three questions per week on your area of expertise on Yahoo! Answers, Trulia Voices, or any of the other sites. Provide your Link (“Link

Drop”) to one of your sites every third answer.

#5 –Read a few relevant Blogs that interest you: These should be viewed as highly influential. Comment at least once per week on one of these. Once in a while email the author to let them know you enjoy their content. When they have content you want to link to, simply ask and they will happily oblige.

#6 – Focus: Stay away from time wasters. Your Internet marketing activities should be deemed as an “income generating.” If you aren’t generating substantial traffic or links, don’t waste your time. Track your efforts closely and make sure you monitor where your results are coming from.

Amy Chorew is a national trainer who is highly experienced at helping managers and agents maximize the opportunities that technology offers them. ■

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I N T E R N AT I O N A L

Having been actively involved for more than 10 years now with land investment and development near Puerto Vallarta, Mexico, i am relatively well versed in the Mexican real estate process. So, i did not have high expectations when i signed up for the Mexico Alive Discovery Weekend coordinated by the oregon Association of REAltoRS® international business council in January, but thought ‘¿Por qué no?’ (Why not?). it’s an inexpensive three-day weekend on the Mexican Riviera, and ¿quién sabe? (who knows?). Maybe i’ll learn something new. i was more than pleasantly surprised at the quality of the presentation, the overall experience, and the referral and networking opportunities that i took away from the weekend. i would recommend it highly to any REAltoR® with even a passing interest in Mexico.

Mexico Alive Discovery Weekend Pays Unexpected Dividendsby Peter bouman

The Thursday - Saturday event is hosted at the Marival Resort and Suites, a beautiful, all-inclusive, beachfront resort in Puerto Vallarta. The schedule is pleasantly paced with seminars, speakers, lunches and candlelight dinners on the beach, tours of several developments, and a

sunset catamaran ride on the bay. As nice as the accommodations, meals and tours were, the thing that most impressed my critical expectation was the quality of information that was presented throughout the weekend. A sampling of some of the speakers and topics includes:

Tom Kelly (author of Cashing In On A Second Home In Mexico) who gave a great overview of the reasons to consider a Mexican vacation or retirement home.

Marco Antonio Ramirez, a Mexican real estate attorney addressed the mysteries of title, taxes, and trusts in clear comprehensible terms.

David Schwartz (ConfiCasa Inter-national Mortgage) addressed the avail-ability of mortgage financing and title insurance in Mexico.

The Mexico Alive team also showed us through various developments that they represent as marketing agents. These sales efforts underwrite the weekend and are why you’re here for roughly the cost of dinner each day. They familiarize you with a range

of real estate offerings that you can talk about back home. These properties range from $164,000 to $1.8 million. Mexico Alive offers very attractive referral commissions to any broker that sends clients or friends who decide to buy. Your clients will be treated to the same affordable and informative weekend if they want to learn more.

According to those who measure such things, there are apparently 78 million baby boomers hitting retirement age over the next two decades. Experts say as many as eight million may choose to live out their golden years in Mexico. I, for one, am convinced of the benefits of a full or semi-retired lifestyle in such a place, and believe that there is great opportunity, as a real estate broker, to expand the services that I can provide to my clients while developing a very interesting real estate referral opportunity. If this means a few more trips to Puerto Vallarta in the winter, well . . . ¿Por qué no?

For further information, consult these websites:Mexico Alive www.mexicoalive.comMarival Resort http://www.gomarival.com

Peter Bouman ([email protected]) lives in Oregon wine country, and specializes in vineyard properties. He met a broker from Boston, MA on the Mexico Alive trip who has a group of clients who happen to be looking for a vineyard . . . ¿quién sabía? (who knew?) ■

Peter bouman


Courses100200300

April 28-May 1,2009(Tues.-Fri.)

TheRiverhouseBend,Oregon

OREGON GRI


Additional InformationInstitute Week ScheduleClasses begin promptly at 8:30 am. and conclude at 4:30 p.m. daily. Sessions break for lunch from 12:00 noon to 1:00 p.m. Course examinations will be held at 4:30 p.m. Wednesday and Friday. Join us for the Institute Reception Thursday evening. The spring REALTOR® Institute will adjourn at approximately 5:00 p.m., Friday, May 1.

Tuition InformationEarly bird registration (received by April 10)

•$299forCourse100or200

•$329forCourse300 (includes NAR designation fee)

•$375non-memberfeefor Course 100, 200 or 300

Tuition after April 10

•$325forCourse100or200

•$345forCourse300 (includes NAR designation fee)

•$399non-memberfeefor Course 100, 200 or 300

Remember, the GRI is the ONLY REALTOR® family designation that does not require payment of a separate renewal fee!

CurriculumCourse 100

15 hours required; 13 hours elective

•HowtoGettheListing&GetitSold

•AdvancedAgency

•FinanceOverview

•EconomicsofBusiness

•RealEstateLawI

•TheREALTOR® Code of Ethics

•ReviewofRecentAdministrativeActions

Course 20021 hours required; 7 hours elective

•Misrepresentation

•InvestmentRealEstate&Taxation

•RealEstateLawII

•BusinessEthics&Communication

Course 30015 hours required, 13 hours elective

•BrokerageManagement

•PersonalMarketing&Technology

•CurrentEvents

•LeadingyourBusiness

•1031Exchanges

•ManagingRisk

The OREGON GRI program’s updated and revised curriculum now gives you . . .

AdvancedRealEstatePractices SB 446, passed by the Oregon Legislature in 2001, requires that all brokers who were licensed after July 1, 2002 must complete the30houradvancedRealEstatePracticescourse at the time of their first renewal. Currently25½hoursofthecurriculumareincluded in Courses 100, 200 and 300.

Registration/Cancellation1. Complete and return the

registration form provided. (Full tuition MUST accompany each registration.)

2. Your registration will be confirmed in writing within two weeks of enrollment. If you do not receive confirmation, contact the Oregon REALTORS® at 800/252-9115toverifyyourregistration. You are not enrolled until you receive confirmation from the Association.

3. In the event you must cancel your registration, your tuition isrefundablelessa$35administrative fee only if written notice of cancellation is received by April 20, 2009. Tuition is not transferable from one Institute to another nor from one student to another.

Important: Class size is limited so register early. Tuition includes classroom instruction, student workbook, Thursday evening reception and coffee breaks.

The RiverhouseThe spring GRI will be held at the new conference center at the Riverhouse. For accommodations, contactthemat800/547-3928.


Fill out this form

Thank You

for Your

Participation

Lodging

SPRING 2009 OREGON GRI (Graduate REALTOR® Institute)

April 28 - May 1, 2009

Name __________________________________________________Nickname _________________________________________

Firm ________________________________________________ Firm Address _________________________________________

City _______________________________________________________State ____________________________ Zip __________

FirmPhone ____________________________ Firm Fax ___________________________E-mail __________________________

If course was taken elsewhere, please send written verification of completion.

I previously completed Course(s) ___________________at Location ______________________Month__________Year________

Note: Courses mustbetakeninnumericalsequence.Mailto:OARatP.O.Box351,Salem,OR97308

April28-May1,2009Pleaseenrollmein:(checkone) Course 100 or Course200,$299 Course300,$329

(Early bird registration valid through April 10, 2009)

After April 6: Course 100 or Course200,$325 Course300,$345

Questions?Call800/252-9115(Salem503/362-3645) Fax503/362-9615(Visa, Am. Ex. and MasterCard registrations only)

In order to better accommodate your needs, do you have a disability that will require auxiliary aids or services at this meeting?

Yes No If yes, please explain ______________________________________________________________________________

_________________________________________________________________________________________________________

Registration (Make checks payable to OAR)

Enclosedismycheckfor$_________________ Charge my bank card (VISA, Am. Ex. or MasterCard only)

Charge$___________________CardNo.___________________________________ExpirationDate____________________

Billing Address ____________________________________________________________________________________________

Signature _________________________________________________________________________________________________

The Riverhouse • Bend, OR The Spring GRI will be held at the Riverhouse Hotel. For accommodations, contact them at 800/547-3928.

IMPORTANTNOTES

1. You will be notified by e-mail when your GRI registration has been processed. Make sure your e-mail address above is correct and legible. If you do not receive a confirmation e-mail within two weeks of submitting your registration, contact Dianne at the Oregon REALTORS® office at 503/362-3645 or 800/252-9115.

2. IfyouneedtocancelyourGRIregistration,tuitionisrefundablelessa$35administrativefeeonlyifOregonREALTORS® receives your written cancellation on or before 4/20/09. Refunds after 4/20/09 will be considered on a case-by-case basis upon receipt of a written explanation of cancellation. Tuition is not transferable from one GRI course to another or from one studenttoanother.Faxcancellationsto503/362-9615.Thankyou.


C O U N S E L O R ’ S C O R N E R


New Construction Warranties Create Risk Management Issuesby Matt farmerOf Counsel

by now everyone involved in new residential construction knows that the state requires contractors to offer warranties to buyers. if the buyer refuses the offered warranty, the contractor can cancel the purchase agreement (oRS 701.320). because the warranty requirement is a contractor licensing issue, real estate licensees have no direct obligations under the statute. nevertheless, like any of the thousands of regulations that implicate real property owners and purchasers (everything from tax policy to civil rights), the new warranty requirements create risk management issues for real estate licensees.

Although somewhat counter-intuitive, the new home warranty requirement is not necessarily a great thing for buyers. Some warranties will be good for buyers but others certainly won’t. Under the statute, the warranty offered can be anything from the contractor’s promise to fix things themselves to a separate written warranty issued by a third party. Third-party warranties sometimes have monthly or annual fees. Some warranties require the homeowner to pay service charges if they request services. It all depends on what the contractor offers - and there are no rules whatsoever about what the contractor has to offer.

In Oregon, there has long been a one-year statutory right to file a complaint against a contractor with the CCB claiming breach of contract or negligent

or improper work. This is sometimes mistakenly called a “one-year implied warranty.” Actually, the only “warranties” Oregon law implies on new construction are those that require new structures to be safe (habitable) and fit for their intended use (merchantable). The one-year CCB complaint right, and the implied warranties of habitability and merchantability, overlaps potential common law contract and tort claims against contractors.

The nested legal rights just described are those the buyer of a new home would enjoy if nothing is said in the purchase contract about warranties, remedies or rights. When a contractor offers an express warranty, as they now must under the new law, the offered warranty has to be judged against the rights and remedies the buyer would have without the offered warranty. This is particularly true if, as is often the case, the offer of an express warranty includes waivers or limitations on the buyer’s other legal rights and remedies. Most offers of limited warranties on new houses and condos require the purchaser to forgo all other rights and remedies.

About now you are saying to yourself - “Great, another mess brought to us by lawyers and legislators.” You may be right about the origin, but that doesn’t help you deal with the resulting risk management issues. Oregon real estate forms for new construction have been changed to mention the contractor’s obligation to offer a warranty and the consequences (builder


New Construction Warranties Create Risk Management Issues . . . continued from page 12.

can cancel the contract) if the buyer refuses the warranty. That’s the first step toward managing risk. A disclosure that makes it clear the warranty is being offered by the contractor under the statute, that the listing brokerage and agent make no representations regarding the warranty and that the buyer should seek competent advice regarding the warranty being offered, might be a good second step. Brokerages that have listing agreements with contractors or developers may want to discuss these issues with their company attorney.

Of course, the first place buyers are going to go for advice about any offered warranty is their real estate agent. If you have

gotten this far, you should realize that comparison of express warranties, waivers and underlying legal rights, not to mention whether the risk of refusal is worth the risk of the contractor canceling the contract, is way beyond the scope of a real estate license. That means a narrow disclaimer given to your new home purchaser client before they make an offer would be a very good idea. Such a selling-side disclaimer might look something like this:

Oregon law requires new residential structure contractors to make a written offer of a warranty against defects in materials and workmanship to the first purchaser or owner of the structure or dwelling. If the buyer does not accept the offered warranty, the

contractor may cancel the purchase agreement. The warranty being offered by the contractor may limit the buyer’s legal rights. The warranty offered may require the buyer to pay fees and charges. The extent of the warranty, its duration and coverage may vary from contractor to contractor. If the warranty offered by the contractor requires the buyer to waive any legal rights, the buyer should consult an attorney before agreeing to the offered warranty. Advice regarding the legal effect of warranty documents and waiver of legal rights is beyond the expertise of a real estate licensee.

Brokerages who represent buyers of new residential construction may want to discuss these issues with their company attorney. ■

. . . the new home warranty

requirement is not necessarily a good thing

for buyers.


C O M M E R C I A L D E V E L O P M E N T

Everyone in the business community who is interested in fostering the Portland metropolitan region’s economic vitality and long-term stability needs to care about the adequacy of our regional urban Growth boundary (uGb). the uGb is area collectively encircling 25 metropolitan cities and urbanized portions of clackamas, Multnomah and Washington counties where future urban growth will be allowed under oregon’s land use system. Every five years, the state charges Metro, our regional government, with the obligation to analyze future demand for housing and jobs to ensure that at any given time there is at least a 20-year supply of residential and employment land within the uGb. A strong economy is a product both of the adequate availability of affordable housing and family wage jobs, which are needed to achieve the quality of life valued by the region’s citizens.

Is the Region’s Urban Growth Boundary Adequate?by Mike tharp, Commercial Association of REALTORS®

The process for projecting job growth – in the retail/service, office, institutional and industrial sectors – and then translating this into acreage is very complex, including: 1) balancing past experience and future trends locally, regionally, nationally and internationally; 2) considering site- and location-specific characteristics of various employment sectors; and 3) accounting for market, regulatory and “aspirational” characteristics. The latter is an expression of the state’s and region’s value of compact urban development and efficient use of resources and infrastructure such as water, sewer and roads.

A similar, although somewhat less complicated, process is used to determine residential land need. As the lead agency charged with Periodic Review for the Portland metropolitan area, Metro both must quantify residential and employment land demand and identify existing capacity – both vacant land and opportunities for infill and redevelopment – within the current boundary. If there is a shortfall, Metro must decide where and by how much to expand the UGB. The last such expansion occurred in 2002 when most of the additional demand was accommodated by bringing the 12,000-acre Damascus/Boring area into the regional UGB. Due to a lack of adequate infrastructure funding, little growth has occurred in this expansion area over the past seven years.

In this current Periodic Review, the Metro Council has until the end of 2010

to adopt its solution for accommodating the required combined 20-year land supply for housing and jobs. As an added complication, Metro has been authorized by the state to identify an additional 20- to 30-year land supply, referred to as “urban reserves” that is most suitable for urban development and, thus, where all future growth beyond this five-year review will be directed. Urban reserves will be matched by a comparable supply of “rural reserves”, high-value farm, forest and natural resource land, which should be protected from future growth.

Given Periodic Review’s complex technical, regulatory and political environment particularly for the employment land element, it is critical that representatives of the business community, both end-users and those who facilitate the sale, leasing, development and management of commercial, industrial and institutional buildings, stay involved in the Metro process at every level. Only by participating “early and often” can the business community influence and shape the outcome. What is the desired outcome? A sufficient supply of employment land distributed throughout the region that responds to market demand at a reasonable cost and with access to basic infrastructure and a trained workforce. Anything less will strangle the region’s continued growth particularly in the face of the current downturn, the worst to hit the U.S. since the Great Depression.



Is the Region’s Urban Growth Boundary Adequate? . . . continued from page 14.

As a commercial broker, I am a volunteer joining other business community volunteers and paid staff closely monitoring this round of the regional UGB Periodic Review. Currently, I serve as chair of the Commercial Real Estate Economic Coalition (CREEC) and as an active member of the Commercial Association of REALTORS® (CAR). Other organizations on the front line include the Portland Business Alliance (PBA), National Association of Industrial and Office Properties (NAIOP), Oregon Association of REALTORS®, Society of Industrial and Office Realtors® (SIOR), Westside Economic Alliance (WEA), Columbia Corridor Association (CCA), Clackamas County Business Alliance (CCBA), East Metro Economic Alliance (EMEA), Home Builders Association of Metropolitan Portland (HBAP) and Portland Metropolitan Association of REALTORS®.

Working in an informal alliance, these business groups have:

• Fundedamappingprojecttoidentifythe acreage immediately adjacent to the existing UGB most suitable for urban development and, therefore, candidate areas for UGB expansion and future urban reserves.

• EncouragedMetrotohireanindependent economic team to identify regional economic and employment trends over the next five, 20 and 50 years to inform the technical analysis of future job demand and related land needs.

• JointlyfundedwithMetroaseriesofeight focus groups with end-users in several employment sectors to identify future trends in their companies and industries that will determine their location, facility and infrastructure requirements.

• Supportseveralpublicworksprojectssuch as the proposed I-5/Columbia River Crossing Replacement Bridge and Sunrise Corridor projects as well as lobbying for improved state and federal transportation infrastructure funding.There are a myriad of ways in which

individuals, companies and trade organizations can participate in this process by: 1) staying informed; 2) joining our informal coalition of business groups; 3) funding research projects to support the business community’s technical research; and 4) providing written and oral testimony at key decision points. For more information, contact me at either 503/272-0331 or [email protected].

Mike Tharp joined the staff of the Portland firm, NAI Norris, Beggs & Simpson in 1980. He recently was presented with the Distinguished Service Award by the Commercial Association of REALTORS® Oregon/SW Washington. ■


G O V E R N M E N T A F FA I R S

2009 legislative Session

Oregon REALTORS® Create an Unprecedented Presenceby Jana JarvisV.P. Public Policy


in the midst of the 2009 legislative Session, it’s safe to say that things are moving fast and furious within the capitol. With spring upon us, we are closing in on the mid-way point of the session. At this juncture, we’re extremely encouraged by the early success that we’ve achieved together. there still are, however, significant challenges looming as oregon’s budget shortfall for the 2009-11 biennium drives legislators to look for new sources of revenue. it’s more important than ever to be mobilized to respond to attacks against the real estate industry.

We recently showed our political strength and created a lasting impression with Oregon’s 75th Legislative Assembly. On March 4, 2009, 600 REALTORS® spent the day in Salem for REALTOR® Day at the Capitol - the largest turnout we have ever seen at this event! This gave members a chance to share the REALTOR® agenda with real life examples that personally impact their families, their business and their

communities. The enthusiasm was contagious as members from all corners of the state showed up to get involved, have fun and make a difference. This made a calculable impact with Oregon’s legislators, as they are still talking about the number of REALTORS® who took time away from their business to spend the day in Salem.

Another opportunity to display our political strength surfaced shortly following our success at REALTOR® Day. At the request of Representative Chuck Riley

(D-Hillsboro), the House Committee on Revenue scheduled a public hearing on House Bill 2696, a bill designed to make like-kind (1031) exchanges a taxable event in Oregon. Like-kind (1031) exchanges are integral to the health of the real estate market and are one of the most fundamental components of real estate investment. In a matter of hours Oregon REALTORS® exerted a tremendous amount of pressure in opposition as close to 6,000 e-mails were sent to the members of the House of Representatives. This response had a significant impact and the sponsor of the legislation testified before the committee asking that it be pulled from consideration. Together, we successfully saved like-kind (1031) exchanges.

In addition to our grassroots successes, we are pursuing an aggressive legislative agenda on behalf of Oregon


Senator betsy Johnson (R) addresses the group.


Oregon REALTORS® Create an Unprecedented Presence . . . continued from page 16.

REALTORS®. To share a few of our top priorities, the policy issues below are being sponsored by the Association and together:• Weareprotectinghomeownersand

prospective buyers from the potential threat of private transfer taxes by pursuing House Bill 2481, which would prohibit a private agreement to transfer real estate in lieu of future payments through a transfer tax. As of today, this bill has passed unanimously out of the House Consumer Protection Committee and will be up on the floor of the House next week for a vote.

• Wearestrengtheningpost-licenseeducation requirements by promoting Senate Bill 640 which develops standards for continuing education that enhances professionalism within the real estate industry. As of this writing, SB 640 will be heard next week in the Senate Consumer Protection and Public Affairs Committee.

• Weareclarifyingworkablesolutionsto ensure that professional real estate activity may continue during temporary absences with House Bill 2910. This proposed legislation has been sent to the House Business and Labor Committee and will be scheduled for a hearing in the near future.

• Wearepromotinghousingaffordabilityto bring homeownership back within reach. With House Bill 2436 we helped successfully create a dedicated, stable

fund for affordable housing in Oregon. HB 2436 has passed both the House and the Senate and is currently on its way to the Governor for his signature.

• Weareworkingtofindasolutiontopromote attainable health care coverage for Oregon’s REALTORS®. Conversely, we are always fighting to

ensure that numerous legislative attacks on the real estate industry are unsuccessful. To highlight a few proposals that have emerged this session, we are working together to:• StopHouseBill2471,HouseBill3408,

and Senate Bill 396 which would allow local real estate transfer taxes.

• Ensurethatchangestothelandusesystem in House Bill 2229 foster flexibility that takes regional differences into account, allows for greater local determination and recognizes the value of economic development.

• PreventattemptsinHouseBill3115tolimit or eliminate the mortgage interest deduction for homeowners in Oregon. The mortgage interest deduction is a remarkably effective tool that facilitates homeownership and is critical to maintaining the health of the real estate market. As we gear up for the end of the session,

it is critical that we build on our success and expand our political presence. In today’s political atmosphere, it is essential that we are alert and ready to respond to attacks rapidly.

Your dedication to REALTOR® issues and participation in the REALTOR® PAC has come full circle, as is evident from the showing en masse at REALTOR® Day at the Capitol. Thanks to our collective efforts, Oregon’s legislators are acutely aware of our issues and level of engagement. Take your support to the next level by investing in REALTOR® PAC, or increasing your investment. RPAC cannot be successful without your commitment. There is no contribution that doesn’t ultimately make an impact. Today, it’s easier than ever to commit. It is now possible to make monthly installments on your annual RPAC investment through our online system. Just call the Public Policy department at 1/800-252-9115 and set it up today!

You can also go online and invest at: www.oregonrealtors.org/InvestinRPAC

Thank you, to each and every one of you, who made REALTOR® Day at the Capitol such a success. Together, let’s build on this! ■

REAltoRS® speak, listen and queue up for lunch at REAltoR® Day in Salem.


the fall oregon GRi (Graduate REAltoR® institute), granted the GRi designation to 56 members in 12 boards/Associations following the offering in Portland, December 1-4, 2008. in a definite departure from past Institutes, attendance at the Portland program showed a significant decrease.

To earn the GRI designation, students must complete a series of three undergraduate courses and successfully pass each course exam. Several years ago the Association also incorporated the curriculum from the Advanced Real Estate Practices first post-license requirement into the GRI program in an effort to expand its value and relevance for new licensees.

The next Oregon GRI will be offered at the Riverhouse Hotel in Bend, April 28-May 1. See the center spread in this magazine for complete course and registration information.

Here is the list, by Board/Association, of Oregon’s 56 new GRI designees:

Fall GRI Course Grants 56 DesignationsCentral Oregon Association Kathleen HansbroughMelanie Mccarthy

Columbia County Board Sean thompson

Willamette Association christine Hauserlinda longSuzanne RushmanHong Wolfe

Douglas County Board carl Mansdorf

East Metropolitan Association Janice Hilbergbarbara KyleJohn MalowneyGina Shingler

Mid-Columbia Association Katherine Haglundlouise Mcculloch

Lincoln County Board Stephanie Moll

Portland Metropolitan Association Susan AlfanoSohee AndersonRhonda bakkePatricia bakkenMarge benedictJennifer brainardAngela brownlisa bugbeecandace carnegieVickie chryslerSheri cunninghamSarita DuaSheryll fongSharon francisMichele fritzlercynthia GerweMichele GilaGlenda HawkinsKeeley HawkinsPamela HueyMarybeth Kostrikincorinne KusminKevin Kwei

catherine MullinDiana o’connellAlexandra Pagethomas Pattersoncraig RegerJennifer RileyStacey RumgayMelissa ShockmanMarjorie SmithMary Sue SudaAmy toyoshimaHuy tranMark WheelerKatie Williams

Salem Association Antonio trejo

Springfield Board Kelly Robets

Union County Board Jeff clark

Yamhill County Association Van Keck

Foundation Club $100- $249

Capitol Rotunda Club $250- $499

Capitol Dome Club $500 - $749

Golden Pioneer Club $750- $999

NAR Major Donor $1000+

Show your support for your industry by becoming a part of

Oregon’s Vital Investors Program (VIPs)!Here are the benefits this program has to offer:

FOundatIOn Club An Oregon REALTOR® investing $100 to $249 becomes a Foundation Club and receives a Foundation Club lapel pin for each year they are a member of this club.

CaPItOl ROtunda Club An Oregon REALTOR® investing $250 to $499 in one year becomes a Capitol Rotunda Club member and receives a Capitol Rotunda Club lapel pin for each year they are a member of this club.

CaPItOl dOme Club An Oregon REALTOR® investing $500 to $749 in one year becomes a Capitol Dome Club member and recieves a Capitol Dome Club lapel pin for each year they are a member of this club.

GOlden PIOneeR Club An Oregon REALTOR® investing $750 to $999 in one year becomes a Golden Pioneer Club member and receives a Golden Pioneer Club lapel pin for each year they are a member of this club.

Oregon Recognition for naR RPaC major donors

NAR Major Donors will receive recognition at an event during the course of the year.

All Oregon VIPs will be recognized on www.oregonrealtors.org and in the OREGON REALTOR® magazine.


A community event to benefi t the Oregon Association of REALTORS® HOME Foundation

Enjoy the best cuisine Portland has to offer while supporting this important cause!

Join us for an evening of fun, food, networking, and entertainment.Thursday, September 17, 2009, 6:00-9:00 pm

Oregon Golf Club • 25700 SW Petes Mountain Rd., West Linn, OR 97068

Cuisine from more than 24 local restaurants & caterers, silent auction & raffl e to benefi t the Oregon Association of REALTORS® HOME Foundation, providing fi nancial resources to create, expand, and encourage home ownership opportunities for Oregonians at or below local median income.

www.oregonrealtors.org/About_OAR/Home_Foundation/

For more information about this event or other ways to become involved in our solution to affordable housingin Oregon, please call (800) 252-9115 or visit www.oregonrealtors.org

A Taste of Portland2 nd Annual

TICKETS: $30 EACH / $50 FOR TWONO-HOST BAR

Tickets are available for advance purchase from:East Metro Association of REALTORS® 1217 NE Burnside, Ste 603, Gresham, OR 97030

Portland Metro Association of REALTORS® 5331 SW Macadam Ave, #207, Portland, OR 97239Oregon Association of REALTORS® 2110 Mission Street SE, Salem, OR 97308

Tel: (800) 252-9115 • Limited Ticket Availability

EVENT SPONSORS:

EvENTSCALENDAR2009 AT-A-GLANCE

APRIL 8-9Oregon REALTORS® Governance Meetings & PAC AppreciationConference Center • Salemwww.oregonrealtors.org

APRIL 21, 2009 Web Seminar Real Estate Myths & Superstitions, Part I • www.oregonrealtors.org

APRIL 28-MAY 1Oregon GRI (REALTOR® Institute)Riverhouse, bendSee pages 9-11 for detailed information www.oregonrealtors.org

MAY 11-16 NAR Midyear Meeting Washington DC • NAR 312/329-8200

JUNE 15-16Oregon Association Executives RetreatChinook Winds Casino • Lincoln City, OR

JUNE 25-26International Real Estate for Local Markets(ciPS designation pre-requisite)Prudential nW training Room, tigard www.oregonrealtors.org

AUGUST 24-25NAR Leadership SummitChicago, IL • NAR 312/329-8200

SEPTEMbER 17Taste of Portland HOME Foundation Fundraiseroregon Golf club, West linn

OCTObER 14-15Oregon REALTORS® Governance Meetings & Installation ProgramSalem (tentative) • Oregon REALTORS® 800/252-9115

NOVEMbER 11-16NAR Annual Convention San Diego, CA • NAR 321/329-8200

NOVEMbER 30-DECEMbER 4Oregon GRI (REALTOR® Institute)Sheraton Hotel/Portland Airportoregon REAltoRS® 800/252-9115

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