growth &reinvention INNOVATION vacation rental DEBATE A publication of Michigan Realtors

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1 A publication of Michigan Realtors INNOVATION growth &reinvention PLUS: Motivating For Profit Industry Challenges Team Issues Realtor Advocacy vacation rental DEBATE Volume 15 Number 1 JANUARY 2016

2 Engaging Leaders Building Connections Engaging Leaders Building Connections The Dearborn Inn, A Marriott Hotel January 20th through 22nd 0

3 Features COVER STORY Officers & Directors RPAC Tribute & Review Thanking 2015 RPAC Investors 12 Large Broker Signature Series Takes a Dynamic Look at Industry Today s challenges tomorrow s opportunities? 14 Our Industry: Entering a New Era of Cooperation and Growth Innovation sure to have an impact in the future by Marilyn Wilson 18 Do This For High-Performance Teams Motivation might not be what you think by Larry Kendall 22 The Long Vacation Looking at the controversy over vacation rentals by Brian F. Westrin Departments 02 President s Report It s all about Real Estate Engagement by Gary J. Reggish 04 Capitol Report Getting involved means strengthening our industry by Brad Ward 26 Legal Lines As informal teams become formal, complications can arise by Gregory L. McLelland, Esq { January Two Thousand & Sixteen Volume Fifteen Number One } 01

4 PRESIDENT S REPORT BY GARY J. REGGISH, CRS The Year of REengagement Good people do what is expected of them Great people do what is expected of them and then some! Great agents meet their client s needs, and then some. Great brokers meet their agent s expectations, and then some. Great associations serve their members to the fullest of their abilities and then some! And Then Some is the theme for 2016 as presented by the President of the National Association of Realtors, Tom Salomone. As I view our association through the filter of And Then Some, I stand in awe of the great work completed by our immediate Past President, Gene Szpienski, the Leadership Team of the Michigan Realtors, our CEO Rob Campau and the entire Michigan Realtors staff. My hat is off to the Michigan Realtors for a job well done! Our focus for 2016 will be to continue the good work of 2015 And Then Some! In order to build on our successes and make our association better in 2016, we will need to continue to focus on every aspect of what makes us great and stretch those facets a bit more, while focusing on our members, clients and private property owners. As I speak to our members I frequently ask the question, Why do you belong to the Association? or What value do you believe the Association brings to the table? I am often surprised that the responses emphasize the education and tools of the trade, with the greatest tool being the Multi-List. Although education and tools are important and worthy of our time, I ask what good is education and tools of the trade if we don t have an industry to operate within? The primary role of the Michigan Realtors is to protect our industry, then education and tools. Unfortunately, the mainstream Realtor does not pay as close attention as they should to our advocacy. We continue to battle taxes on services, the elimination of the Mortgage Interest Deduction, re-authorization of Flood Insurance, the Qualified Residential Mortgage (many legislatures, on both sides of the aisle, believe that the minimum down payment for residential mortgages should be 20%), as well as high FHA premiums along with many more threats. Most Realtors do not realize if the mortgage interest deduction were eliminated it would cost the average Realtor $8,000 a year. It is important to note that the average Realtor closes approximately $1.1 million in annual sales volume, resulting in $33,000 a year before contract, franchise fees, and marketing expenses. $8,000 is 25% of their gross income. The detriment is proportionally greater when a Realtor s sales volume is greater than the average. Elimination of the Mortgage Interest Deduction would impact our affiliates, Mortgage Lenders, Title companies, Home Inspectors, Home Warranty companies etc., upwards of 7 billion dollars a year in revenue! Threats to our industry are real, and while we have been fortunate to prevail on most of these issues, it hasn t happened without a few of our members carrying much of the burden for the remainder. Only about 30% of our membership invests in our Realtor Political Action Committee (RPAC), which means 70% of our membership benefits from the work of few. Some will say I don t get involved in politics. I promise you, you may not be involved in politics but politics is involved in you! Others will say, I don t like the particular politicians to whom you give money. This was a hard pill even for me to swallow at the beginning, until I learned more about the system and what it means to wear your Realtor Party hat, as opposed to your Republican, Democratic or Independent Party hats. For example, if my preferred candidate personally serves on the Agricultural Committee, what good is he or she to our industry when it comes to the Mortgage Interest Deduction (MID)? After all, it is the politicians that are deciding the fate of the MID that we, as an industry, need to educate and support. Sometimes, as an industry, our Realtor champions do not coincide with our personal champions. It would be ideal to have all of our favorites on the committees relevant to our industry, but that is not reality. For those of you that can t get past which candidates the Michigan Realtors supports, you have the option of investing in RPAC II, where the monies invested primarily battle policy issues at the local and state level on ballot initiatives. It is critical that you, as a member, get engaged will be the year of REengagement (Real Estate-engagement) and we are focused on engaging every one of our members that heretofore have not invested in our Realtor Political Action Committee. For those of you that are enrolled, THANK YOU! You are the lifeline of our industry. I look forward to going the extra mile and then some! I am honored to be your President. 02 MICHIGANREALTOR JANUARY 2016

5 COMING EVENTS PRESIDENT Gary J. Reggish CRS GMAR: PRESIDENT-ELECT Jason Copeman GRI UPAR: TREASURER Sara Lipnitz SFR, PMN GMAR: CHIEF EXECUTIVE OFFICER Robert Campau, Esq. RCE, CAE EDITOR & ADVERTISING Joe Kras MBA, SAG-AFTRA January 20-22, Achieve The Dearborn Inn, A Marriott Hotel, Dearborn April 21, Broker Summit Michigan State University Breslin Center, East Lansing June 8, 2016 Xplode Conference Brought to you by Michigan YPN Network, Location TBD October 6-7, 2016 Convention & Expo Soaring Eagle Casino & Resort, Mt. Pleasant 2016 Michigan Realtors Board of Directors: District 1 Meagan Luce, ( Peninsula Association of REALTORS ); District 2 Gordon Naumoff, (West Michigan Lakeshore Association of REALTORS ); District 3 Michael Bass, ( Association of REALTORS ); District 4 Tom Darger, (Midland Board of REALTORS ); District 5 Sue Shangle, (East Central Association of REALTORS ); District 6 Carl Kaminski, (Southwestern Michigan Association of REALTORS ); District 7 Vance Shutes, (Ann Arbor Area Board of REALTORS ); District 8 Marianne McCreary, (Livingston County Association of REALTORS ); District 9 Maureen Francis, ( Association of REALTORS ); District 10 Shelley Schoenherr, ( Association of REALTORS ); District 11 James Iodice, ( Association of REALTORS ); District 12 Alex Milshteyn, (Ann Arbor Area Board of REALTORS ); District 13 Reggie Fluker, ( Association of REALTORS ); District 14 E toile Libbett, (Detroit Association of REALTORS ); Past President Claire Williams ( Association of REALTORS ); Large Office Stu Elsea, (Greater Metropolitan Association of REALTORS ); Large Office Steve Fase, ( Association of REALTORS ); Rod Alderink (CAR) (MiCAR Representative); Sandy Covaleski (CBOR) (MiCAR Representative); MRAEC Rep. Patty Young (Midland Board of REALTORS ) Michigan REALTOR provides information about the real estate profession and news of Michigan Realtors and its members. Opinions expressed in signed feature articles are those of the author and do not necessarily reflect the viewpoint of Michigan Realtors. Advertising of property, services or products herein does not imply endorsement by Michigan Realtors. Michigan REALTOR (ISSN , USPS ) is published six times per year (January, March, May, August, September, November) by the Michigan Realtors, 720 N. Washington Ave., Lansing, MI Address letters, address changes and inquiries to: Michigan REALTOR, 720 N. Washington Ave., Lansing, MI 48906: : Fax com: contact@mirealtors.com. Subscription rates: $8 per year (included in dues) for members, $25/year nonmembers. Periodicals postage-paid in Lansing, Michigan and additional mailing offices. POSTMASTER: Send address changes to the Michigan REALTOR, 720 N. Washington Ave., Lansing, MI Find Michigan Realtors on your favorite social networking sites: NAR REALTOR Action Center App Get the latest political news and headlines on issues affecting Realtors and take action on a Call for Action right from your phone. Go to for details, or scan the QR Code. 03

6 CAPITOL REPORT BY BRAD WARD, VICE PRESIDENT OF PUBLIC POLICY AND LEGAL AFFAIRS Answering the Call In the past I've used the metaphor of advocacy being a three-legged stool. Forgive me if you've heard it before. I promise to start working on a new one. For the time being, I'll still employ the stool, because it works well. The three legs upon which this association supports advocacy are -- strength in RPAC (Realtors Political Action Committee), strength as a lobbying organization (your dedicated Michigan and National Realtors policy staff) and strength in our membership (over 1 million strong nationwide). These three components play a vital role when tackling issues at the state and national level. However, I think you would be surprised by the actual participation rates in RPAC, and especially, calls to action. In Michigan, RPAC participation hovers each year around 30%. In 2014, Michigan Realtors had the most successful year in the history of the association in terms of RPAC dollars raised, but still only achieved 30% participation. That put our state around the national average, but we are outpaced by many other states. When you look at Calls for Action (CFAs), Michigan's participation rates slips into the low 20's. Again, we're average nationwide. In all the years that I've worked for our great association, one of the most important things that I've learned is that we're never satisfied with being average. Each year, members serving on NAR committees develop participation goals for both RPAC and Calls for Action. In 2015, we had an RPAC participation goal of 37% and a Call for Action goal of 20%. I'm happy to report that Michigan did attain our 20% goal for the NAR issued CFAs on bills to stop patent trolls, and protect the guarantee fees paid by borrowers to Fannie Mae and Freddie Mac from being raided to balance the transportation budget. Thank you to everyone that responded, and a big thank you to all of our local associations that beat the 20% participation goal. These CFA s are launched when important legislation or policy affecting the real estate arena is being discussed I think you would be surprised by the actual PARTICIPATION RATES IN RPAC, and especially, CALLS TO ACTION. 04 MICHIGANREALTOR JANUARY 2016

7 Sign Up for REALTOR Party Mobile Alerts Text REALTORS to in Washington D.C. or Lansing. The Call for Action process is a simple way to get a message out to our over 25,000 members across the state to Take Action, usually by one click of your mouse, or a tap on your smart phone. A letter then gets sent via to your elected official on this issue. Legislators take notice when a large contingency from their respective districts reaches out to them on a particular issue. This was highlighted in 2007, when over 10,000 letters were sent to State House and State Senate members regarding a proposed detrimental sales tax on services. (At that time, one member of the Senate actually voiced how effective this tool was in a speech on the Senate floor during this particular debate). For a moment, imagine the strength of the Realtor message if we had 100% participation in our CFAs. It really is only a few clicks of a button to send that message. For those of you that are into New Year's resolutions, here's an easy one -- text REALTORS to 30644, and get yourself signed up for My Realtor Party alerts sent to your smartphone so you can respond quickly. Looking at RPAC, when the RPAC accounting books are tied out for the end of the year, our participation rate will still be in that neighborhood of 30%. This year will also mark a renewed push for participation in PAC activities to keep our voice strong in this election year. The Michigan Realtors will be working along with your local associations and NAR to reach out to every member for participation. The number one reason people don't invest in RPAC is because they have never been asked. This year, groups of volunteer members, such as you, will take a look at candidates for every level of office across the nation. They will seek out Realtor champions, candidates that know and understand the importance of real estate investment and homeownership to the economy. RPAC money invested by members and association staff then goes to support Realtor -friendly candidates in their quest for office. Decisions are being made every day that affect you and your business and we need to make sure that the people in office making them share in our Realtor philosophy. The stool upon which advocacy sits needs to be sturdy, one leg can't be longer than another. Participation in RPAC and Calls for Action is crucial to protecting your profession and the industry. When the call comes, answer it, lend your voice, and participate. CONGRATULATIONS TO THE FOLLOWING LOCAL ASSOCIATIONS WHO ACHIEVED 20% PARTICIPATION RATE OR HIGHER ON THE LATEST NAR CALL TO ACTION REGARDING G-FEES! Antrim Charlevoix Kalkaska Association of Realtors Battle Creek Area Association of Realtors Bay County Realtor Association Clare Gladwin Board of Realtors Down River Association of Realtors East Central Association of Realtors Eastern Thumb Association of Realtors Eastern Upper Peninsula Board of Realtors Emmet Association of Realtors Greater Kalamazoo Association of Realtors Greater Shiawassee Association of Realtors Grosse Pointe Board of Realtors Hillsdale County Board of Realtors Livingston County Association of Realtors Midland Board of Realtors Monroe County Association of Realtors Montcalm County Association of Realtors Northeastern Michigan Board of Realtors Southwestern Michigan Association of Realtors St Joseph County Association of Realtors Association of Realtors Water Wonderland Board of Realtors Association of Realtors 05

8 2016 President: Gary J. Reggish, Gary J. Reggish, CRS, SFR, Luxury Home Marketing, Class of 2012 NAR Leadership Academy, Broker/Owner of Remerica United Realty, Novi. Reggish has been a Realtor since September 1999; President of WWOCAR ; Board of Directors for the National Association of Realtors ; NAR RPAC Fundraising Trustees 2014; Vice Chair NAR Major Investor Council 2013; Chair NAR Major Investor Council 2014; State and Local Issues Committee for the National Association of Realtors ; Federal Housing Policy Committee for the National Association of Realtors 2012; Major Investor Council Member representing Michigan for the National Association of Realtors ; Board of Director for the Michigan Realtors ; Treasurer-Elect for Michigan Realtors 2013; Chair of the RPAC (Realtors Political Action Committee) Trustees for Michigan Realtors 2012; RPAC Trustee for Michigan Realtors ; Chair of 2012 Broker Summit; Convention Committee ; served 3 years on the Grievance Committee (WWOCAR) and 2 years on the Professional Standards Appeals panel; two years on the Risk Reduction Committee for the WWOCAR; 2007 and 2010 Realtor of the Year (WWOCAR); 2012 Realtor Active in Politics (Michigan Realtors ). President-Elect: Jason Copeman, Upper Peninsula Jason W. Copeman, GRI, is a Broker/Owner with 23 years of experience in Marquette and the North Central Upper Peninsula of Michigan. Jason is active on his local Board of Directors and has served as the Upper Peninsula Realtors President, has been chosen twice as his local Realtor of the Year, has served as his local association Treasurer for three years, and serves as Chairperson of the Upper Peninsula Association of Realtors Data Sharing and Cooperative Research Committee, which pursues and promotes ways to build stronger Realtor relationships and cooperation. He is also active on his local MLS Committee. Jason served as Treasurer for the Michigan Realtors in 2015 and will be President-Elect for the Michigan Realtors in Jason has a seat on the NAR Board of Directors and also serves on the NAR Multiple Listing Issues and Policies Committee in a 3 year term. Jason married his high school sweetheart, Tammy, and they have four children; Wesley, Joshua, Olivia and Isaac. Treasurer: Sara Lipnitz, Sara Lipnitz, Associate Broker, SFR, PMN, has been involved in the real-est - mercial market, and for the past 14 years in residential sales. She is a top producing Realtor in the Birmingham/Oakland County marketplace. Sara currently holds the following positions: National Association of Realtors, RPAC Major Investor Council Representative to WCR, NAR Meeting & Convention Committee and Federal Political Coordinator to Senator Gary Peters. Sara serves on the following committees for the Michigan Realtors : RPAC Trustees, Budget & Finance Committee, Appraisal Management Committee, Personnel Committee and the Convention Task Force. Locally, Sara sits on RPAC committee and Professional Standards Committee for the Association of Realtors. Past Chapter, WCR Michigan Ways & Means Committee Chair; GMAR Grievance Committee, GMAR Diversity Committee, GMAR Nominating Committee and GMAR RPAC Committee. Sara is a graduate of the 2014 National Association of Realtors Leadership Academy, was named the 2012 Realtor of the Year for GMAR, 2015 Member of the Year for WCR and a Network, established in Sara is also involved with several local charities such as CARE House, The Humane Society, and Make-a-Wish Foundation. Board of Directors Michigan Realtors 2016 board of directors is made up of 14 district directors (see next page) and six other representatives, which are listed below. District directors are elected during the One REALTOR, One Vote Online Election, which takes place every fall. Appointing Bodies: Claire Williams GMAR Past President Stu Elsea GMAR Large Office Steve Fase GRAR Large Office Rod Alderink CAR MiCAR Sandy Covaleski CBOR MiCAR Patty Young Midland MRAEC Rep 06 MICHIGANREALTOR JANUARY 2016

9 2016 District Representatives District representatives serve as liaisons between Michigan Realtors and the local associations in their region. Meagan Luce District 1 Expires in 2016 Gordon Naumoff District 2 Expires in 2017 Michael L. Bass District 3 Expires in 2017 Tom Darger District 4 Expires in 2016 Sue Shangle District 5 Expires in 2017 Carl Kaminski District 6 Expires in 2016 Vance Shutes District 7 Expires in 2017 Marianne McCreary District 8 Expires in 2017 Maureen Francis District 9 Expires in 2016 Shelley Schoenherr District 10 Expires in 2017 James Iodice District 11 Expires in 2016 Alex Milshteyn District 12 Expires in 2017 Reggie Fluker District 13 Expires in 2017 E toile Libbett District 14 Expires in 2016 Michigan s 14 Congressional Districts 07

10 2015 RPAC Tribute INVESTORS AS OF The Realtors Political Action Committee (RPAC) is the best way a Realtor can protect their business. RPAC is the only grassroots and issues mobilizing force that exists to promote the tradition of home ownership and real estate investment. By investing in RPAC, you are supporting Realtor -friendly ballot proposals and candidates for public office that understand your industry. With RPAC, Realtors become active in one of the state and nation s most powerful and effective advocacy efforts, fighting for private property rights, sound tax reform and less burdensome regulation of your business. We thank these leaders for participating in this powerful network that shapes our business by advancing our issues in Washington, Lansing and in local government. RPAC HALL OF FAME Mark Baker Lenawee County Dan Coffey Southwestern Michigan Pat Vredevoogd Combs Chris Courtney Dan Elsea Stuart Elsea Beth Foley Carol Jones Bill Martin Michigan Realtors John McArdle Michel Metzner Nanci Rands Gary J. Reggish Teri Spiro Bob Taylor Grosse Pointe Furhad Waquad PLATINUM R Association of Realtors Association of Realtors Michigan Realtors Association of Realtors GOLDEN R Paula Arndt Central Michigan Mark Baker Lenawee County David Botsford North Oakland County Robert Campau Michigan Realtors Ryan Eashoo East Central Ted Edginton Dan Elsea Stuart Elsea Beth Foley Yoshiko Fujimori Sara Lipnitz Denise Love Central Michigan John McArdle Gordon McCann Michel Metzner Nanci Rands Association of Realtors Commercial Board of Realtors Gary J. Reggish Teri Spiro Bob Taylor Grosse Pointe Pat Vredevoogd Combs Furhad Waquad Dale Zahn 08 MICHIGANREALTOR JANUARY 2016

11 CRYSTAL R Debbie Barnett Luke Bouman Brenda Brosnan Rory Byrne Chicago Title Randy Caltrider Dan Coffey Southwestern Michigan Heather Davis Chris Dean Debra Hall Beccy Janis Dan Jaqua Greater Kalamazoo Tammy Kerr Meagan Luce Bill Milliken Commercial Board Brad Platt Robin Pompey Greater Kalamazoo Kim Pontius Rick Reardon Jackson Area Commercial Alliance of Realtors Charles Reaume Tom Rich Caron Koteles Riha Natalie Rowe Greater Kalamazoo Johnna Struck Rachael Veldkamp Rebecca Williamson Jeff Young 2015 RPAC TRUSTEES Chair Vice-Chair Mark Baker Lenawee County Chris Dean Charlie Hoats Commercial Alliance Gordon McCann Dennis Pearsall Teri Spiro A. Michael Conn East Central Ashley Dietch Dan Jaqua Greater Kalamazoo Al Morehart Battle Creek Area Elizabeth Pressler Grosse Pointe Sara Lipnitz Fred Hetherwick Jackson Area Terry Westbrook Heather Davis Jim Fase Laurie Koelling James Parsons Central Michigan Gary J. Reggish Dale Zahn NAR PRESIDENT S CIRCLE Mark Baker Lenawee County David Botsford North Oakland County Randy Caltrider Robert Campau Michigan Realtors Deborah Corey Heather Davis Chris Dean Ryan Eashoo East Central Ted Edginton Dan Elsea Stuart Elsea Beth Foley Maureen Francis Yoshiko Fujimori Sandi Gentry Karen Greenwood Carol Griffith Livingston County Debra Hall Jamie Iodice Sara Lipnitz Rodney Martin APHW Gordon McCann John Meesseman Bill Milliken Commercial Board Nanci Rands Rick Reardon Jackson Area Gary J. Reggish Teri Spiro Johnna Struck Pat Vredevoogd Combs Furhad Waquad Dale Zahn Debbie Zalewski Ron Zupko Livingston County Gold, Silver, and Century Circle Investors can be viewed by visiting MiRealtors.com To get involved with RPAC, visit the RPAC web site: This tribute is intended for viewing only by members. This is not a public solicitation. 09

12 STERLING R Amy Albright North Oakland County Tim Anders Linda Andrew Down River Ryan Arnt Southwestern Michigan Jon Aucutt Lola Audu Gary Bailey Sr. West Central Sandra Bailey-Bristol Sandy Baker Livingston Michael Balsitis Judith Barker Grosse Pointe Robbin Barnes Doug Beiswanger Jackson Area Nancy Bierenga Howie Boeve Scott Bohlen Livingston Greg Bol Commercial Alliance Bill Bowling Commercial Alliance Mark Brace Brenda Braden Monroe County Stephan Brochu East Central Chad Brown Paul Brown Todd Buckley Livingston Rob Buelow Molly Buttleman Bruce Bylsma Kate Bylsma Bridget Carefoot Greg Carlson June Clark Monroe County Michael Conn East Central Kathleen Coon Deborah Corey James Courtney Chris Courtney Tom Cronkright Sun Title Andrea Crossman Debbie Crownover Jackson Area Matt Dakoske Allan Daniels North Oakland County Matt Davis Battle Creek Area Michelle Davis Monroe County Emily Day Debra DeAngelo Suzzette Deaux Greater Kalamazoo Jay DeBruyn Southwestern Michigan Ida DeGiuli Down River Renee DeKroub Livingston Dave Denton Commercial Alliance Julie Diaz Ashley Dietch Trevor Duffy Paul Dumke Southwestern Michigan Jeff Duneske Kimberly Dunham Randy Dye Ron Ellison Jackson Area Natan Espinosa Andrea Esse North Oakland Jim Fase Pat Fase Steve Fase Jeff Fletcher Ann Arbor Dana Fox North Oakland County Maureen Francis Terence Frewen Shelley Frody Marie Gamber Down River Sandi Gentry Carol Genzink Loren Gerber Southwestern Michigan Michelle Gordon Beth Graham Cheryl Grant Rick Grasman Karen Greenwood Carol Griffith Livingston Scott Griffith Livingston Willard Hadley Grosse Pointe Mark Hagan Ty Hallock Commercial Alliance Barb Hampton Eastern Upper Peninsula Ed Hansen Alan Haynes Monroe County Linda Hazelhoff Greater Kalamazoo Jim Heglund Commercial Alliance Fred Hetherwick Jackson Area Matt Hodges Joni Holly Pete Holoway Cathy Hoppough Bob Horn Commercial Alliance Lucas Howard Scott Hudkins Monroe County Karla Huitsing Shawn Huston Water Wonderland James Iodice Jon Jackson Pat Jacobs North Oakland County Frank Janca Bay County Ron Jasgur Deborah Johnson Steve Karas Katie Karczewski Sue Kazma Doug Klaasen David Klaft Grosse Pointe Ken Kleinrichert Brian Klingel Laurie Koelling Colin Kraay Commercial Alliance Mark Kraushaar John Kuiper Commercial Alliance Tom Kuiper Kim Laforet Todd Lands Ann Arbor Jack Lane Benjamin Latocki Jackson Area Trish Lentz Downriver Tom Long Down River 10 MICHIGANREALTOR JANUARY 2016

13 STERLING R Rick Loose Midland Allen Louks Greater Kalamazoo Jane Lowell George Lucas Southwestern Michigan John MacLeod Livingston William MacLeod Steve Marcusse Commercial Alliance Mark Marker Livingston Leanne Marlow Eastern Upper Peninsula Duane Marsh Rodney Martin APHW Josh May Kevin McBride Marianne McCreary Livingston John Meesseman Dave Melvin John Meyer Greg Miller Greater Kalamazoo Ivan Miller Bay County Alex Milshteyn Ann Arbor Marsha Minervini Rob Moen East Central Lisa Moore Monroe County Greg Morris Northeastern Eva Morrow Margaret Murphy Central Michigan Ingrid Nelson John North Mark Oegema Ryan Ogle Beau Otis Adam Paarlberg Tom Paarlberg James Parsons III Central Michigan Randall Patterson Dennis Pearsall Tony Pearson Commercial Alliance Walter Perschbacher Ann Peterson North Oakland County John Postma Beth Pressler Grosse Pointe Debora Raymond East Central Mary Rettig North Oakland County Francis Rhames Lenawee County Lisa Ridha Ann Arbor Julie Rietberg Matt Robertson Julie Rockwell Al Rowe Greater Kalamazoo Mike Rundhaug Dave Ruwe Wendy Ryder Bob Schautz Ted Schweitzer Sue Shangle East Central Cathy Sherman Bittrick Cynthia Sinicki Bay County Tami Slocum Greater Kalamazoo Jodi Smith Kathy Smith Greater Kalamazoo Rick Smith Down River Tom Speet Tim Spiro Rick Stein Sam Sterk James Stevens Eric Stevenson Robin Stressman Central Michigan Bob Struck Dale Stuckey Duke Suwyn Commercial Alliance Amy Sweet Jon Swords Brenda Szlachta Gene Szpeinski CAR, CBOR, GRAR Dave Taljonick East Central Penny Tarwacki Down River Mary Teitsma Michelle Teitsma East Central Kim Thomspon East Central Carl Vagnetti Livingston Jim Vanas Montcalm Steve Volkers Gary Walter Southwestern Michigan Terry Westbrook Roger Weymouth Claire Williams Ron Williamson Kathleen Wilson Mary Anne Wisinski-Rosely Commercial Alliance Steven Woloszyk Greater Kalamazoo Jerry Yatooma Debbie Zalewski Laurie Zokoe Ron Zupko Livingston Ann Arbor Area Board of Realtors Bay County Realtor Association Birmingham Colliers International West Michigan East Central Association of Realtors Greater Kalamazoo Association of Realtors Association of Realtors Jackson Area Association of Realtors Mason Oceana Manistee Board of Realtors Monroe County Association of Realtors North Oakland County Board of Realtors Northern Great Lakes Regional MLS Real Estate Infomation Systems of Southwest Michigan Southwest Michigan Association of Realtors Upper Peninsula Association of Realtors Water Wonderland Board of Realtors WCR Flint Chapter WCR Lake Pointe WCR Lakeshore Chapter WCR Western Michigan Chapter 11

14 Large Broker Signature Series Takes a Dynamic Look at Industry D.A.N.G.E.R. REPORT SECTIONS INCLUDE: Agents Brokers NAR Associations MLS The Michigan Realtors Large Broker Signature Series was created to offer targeted and cutting edge information to participating large brokers and real estate leaders from across Michigan. In the fourth quarter of 2015, the series auspiciously debuted with internationally celebrated author and trend-spotter, Stefan Swanepoel. Drawing from his work on the recently NARcommissioned D.A.N.G.E.R. (Definitive Analysis of Negative Game Changers Emerging in Real Estate) Report, Swanepoel's presentation was a powerful tourde-force. While critical and honest, Swanepoel left attendees with an ultimately optimistic look at the future of the real estate industry. Released in May of 2015, the Report offers a comprehensive analysis of 50 threats, risks, and challenges the real estate industry WHY WAS THE D.A.N.G.E.R. REPORT CREATED? NAR Leadership tasked the Strategic Thinking Advisory Committee to develop a wide-ranging list on the threats and challenges facing the real estate industry in the next 3-5 years. NAR engaged the services of leading industry author and visionary Stefan Swanepoel to help research and write a comprehensive Report. The Report purposely does not provide any solutions but seeks to encourage an industry-wide conversation about the most pressing challenges before laying a foundation for the formulation of solutions. is facing today or could face in the near future. It has been widely discussed and debated on social media and has become the focal point of roundtable discussions, membership luncheons, leadership retreats and planning meetings at Realtor associations nationwide. The Michigan Realtors encourages the entire membership to avail themselves of the Report, while also diving into the online interactive component that allows Realtors to customize their own experience with the Report. Access to this innovative and valuable resource can be found at Michigan Realtors past president, Gene Szpeinski was in attendance and found great value and insight in the presentation. Stefan Swanepoel provided a fast paced, thought provoking journey through the minefield of potential threats to our industry! Well done, with the bonus of futuristic and coming soon ideas and trends that will no doubt enrich our lives, he says. The Report is based on data from a national survey of approximately 7,800 Realtors and interviews with 74 high-level executives and other real estate industry leaders. The report also takes other real estate related studies, reports, articles, and surveys into account. NAR s leadership and Strategic Thinking Advisory Committee will discuss all the report s findings over the next year to create future strategic direction based on what they find useful, forward-thinking, progressive, and actionable. The Michigan Realtors Large Broker Signature Series will build upon the success of its 2015 debut in the coming year, connecting participating brokers with industry experts. 12 MICHIGANREALTOR JANUARY 2016

15 Released in May of 2015, the Report offers a comprehensive analysis of 50 THREATS, RISKS, AND CHALLENGES the real estate industry is facing today or could face in the near future. 13

16 14 MICHIGANREALTOR JANUARY 2016 OUR INDUSTRY: ENTERING A NEW

17 growth ERA OF &cooperation BY MARILYN WILSON The real estate industry has emerged out of the recession with a renewed focus on cooperation designed to create new market efficiencies, which will open up opportunities for innovation, growth and re-invention for brokers, MLSs and the agents they serve. I am thrilled to give you a quick update on three industry initiatives that are going to revolutionize our business and the ability for agents to grow their businesses. 15

18 RESO RESO stands for the Real Estate Standards Organization. Industry standards are a vital component to drive real estate technology innovation that will directly benefit your brokerage. Every real estate brokerage technology that interfaces with MLS data your IDX websites, your apps, your marketing technology, your CRM all benefit from the efforts of RESO. In its simplest definition RESO creates one consistent way to describe listing information across all markets in the U.S. When all MLSs report listing information the same way, it makes it much easier for brokers to display information on your website, mobile app., back office systems and anywhere else where MLS information is important in your business. In essence RESO puts real estate information on a high-speed train making it easier for technology companies to innovate instead of focusing on normalizing information. Be sure that your local MLS has become RESO Data Dictionary certified so that you can take advantage of this amazing program. Each MLS is responsible to have the Data Dictionary available by 1/1/16. If you would like more information about RESO and the benefits to brokers, visit BROKER PUBLIC PORTAL The second exciting initiative being worked on is called the Broker Public Portal ( This initiative is a collaboration between leading brokerages and MLSs from all over America. Collectively the initial investors in the Broker Public Portal represent over 600,000 agents. The goal of the Broker Public Portal is to create a rich, easy to use consumer-facing mobile app and website that will be designed to encourage consumers to engage with listing agents to learn more about their properties since they can best address questions about the property and easily schedule showing appointments as desired. It will also be compliant with the Fair Display Guidelines which ensure that no other agent can be featured, brokers have control over lead distribution and the entity will deliver reports showing activity levels for each property that can be shared with the homeowner. The Board of the Broker Public Portal, made up of brokers and MLSs, is currently working on the technology solution and business plan and will shortly be publishing more about the specific rollout timing of the program. The current intention of the program is to fund the development and marketing through a small portion of the dues dollars collected by MLSs. 16 MICHIGANREALTOR JANUARY 2016

19 OUR INDUSTRY UPSTREAM At its core, Upstream is a broker-owned and managed back-end platform that will 1) ensure accurate, standardized data, 2) give brokers control over where and how their data is distributed and displayed and 3) greatly improve the consumer experience. Upstream is designed to benefit brokerages of any size, and it's fueled by a collaborative resolve not seen in our industry since the advent of the MLS. Initial testing in select markets is set for Q2 2016, and Upstream will soon move from the abstract to reality. Here are six key benefits Upstream will deliver. 1 efficiency As a single data entry point, Upstream will provide efficiencies that save brokerages significant amounts of time and money. Brokerages that belong to more than one MLS, for instance, will enter the data once and have it delivered to those MLSs. That's much more efficient than having to upload data into each MLS separately. 2 standardization Upstream will move the industry toward universal use of the data format developed by the Real Estate Standards Organization (RESO). A standardized structure will make listing data consistent, portable and more accurate. This step will take time, but Upstream will assist MLSs and others in making the transition. 3 broker control Brokers will have total control over how and where their data is distributed. They will dictate the framework that best serves their business needs and their clients. 4 consumer experience Because data will be updated within the same centralized database into which it's entered, the information that flows to vendors or portals-and to the consumers they reach-will be accurate and up-to-date at all times. The standardized format will also help consumers learn and understand a common real estate language. On both counts, the result is a far better experience for buyers and sellers. 5 universal impact Upstream's benefits aren't limited to one kind of brokerage or another. The platform will serve the interests of franchises, independents, urban firms, rural offices, newcomers, veterans, mom-and-pop shops, mega-brokerages and everything in between. 6 a bridge to others Upstream has no intention of displacing MLSs or developing a national portal. The focus is on providing clean, accurate and timely data to industry partners-not on taking over MLS functions or advertising to the public. Upstream is simply working to ensure that the data being passed along is the highest quality possible. Marilyn Wilson is a founding partner of WAV Group, a premiere provider of strategic insights and the leading provider of consumer research in the real estate industry. The company s goal is to create waves of positive change for its clients, leading to growth and constant improvement. Visit

20 Do This For High-Performance Teams People want to feel understood and appreciated. Do that and you re golden. BY LARRY KENDALL, CHAIRMAN OF THE GROUP, INC. AND AUTHOR OF NINJA SELLING How do you recruit, motivate, and retain a high-performance team? In his excellent book, The Heart of Coaching, Thomas Crane cites a research study by Glenn Tobe & Associates. In this survey, managers and their team members were each asked to rank a list of performance motivators. What managers thought team members wanted most from their jobs and what team members actually wanted most bore little resemblance to each other. There was a significant gap! Managers ranked money as the top motivator wages, income, and commission split. However, money only ranked No. 5 to team members, important but not as important as their top three: 1. Appreciation 2. Feeling in on things 3. Understanding attitude Where did these top three motivators for the team rank with the managers? Dead last! Managers were out of touch with what motivated their people. What would it cost to do these three activities? A little investment of your time. Your ROA (Return on Appreciation) will be huge! Improve your recruiting, performance, and retention by putting your focus on these three areas. Here s a system to do it: MAKE THE ROUNDS. Face time is a key. We encourage our managers to walk through their offices and see their people at least twice a day. SEND NOTES, S, AND PHONE CALLS. As chairman of our company, I have a goal to acknowledge at least five of our people a day, in person. That s 25 a week. Given the size of our organization (250 people), I m having personal interaction (and showing appreciation) to everyone at least once a quarter. Our managers should have far more interaction with their people, preferably weekly. LOAD INTO YOUR CALENDAR ALL YOUR TEAM MEMBER S BIRTHDAYS AND ANNIVERSARY DATES OF JOINING YOUR COMPANY. When those dates pop up on your calendar, make sure you let team members know they are appreciated. SHARE WHAT IS HAPPENING AND WHAT IS ABOUT TO HAPPEN IN YOUR COMPANY OR OFFICE, SO THEY FEEL IN ON IT. Let them know first so they are not learning about it on the street. Communicate your message more than once (some research says seven times) so everyone gets it. GET TO KNOW YOUR TEAM MEMBERS PERSONALLY THEIR FAMILIES, THEIR GOALS, THEIR WHYS. You will have a better connection with them and understand what he or she is going through. READ THE BOOK, THE FIVE LANGUAGES OF APPRECIATION IN THE WORKPLACE, BY GARY CHAPMAN AND PAUL WHITE. Everyone likes to be appreciated in one of five ways. 18 MICHIGANREALTOR JANUARY 2016

21 What managers thought team members wanted most from their jobs and what team members actually wanted most bore little resemblance to each other. Have you ever heard of the Hawthorne Effect? It s a term in psychology that was developed out of a study in Hawthorne, California decades ago. Industrial psychologists were trying to figure out how to motivate workers in a manufacturing plant to higher levels of productivity. One theory they tested was the lighting in the plant. Their theory was that if the workers could see better (more light); they would be more productive. As the light level was increased, sure enough production went up. However, surprisingly, as the light level was reduced, production went up again! They kept lowering the level of light and production was soaring in a plant that was almost dark. How could this be? The psychologists discovered that humans performed better when they know someone is watching them that someone cares about what they are doing. This is now called the Hawthorne Effect. Put the Hawthorne Effect to work in your organization. It starts with communication and appreciation. Whether it is the Hawthorne study, the Glen Tobe & Associates study or just my personal experience motivating salespeople for over 40 years, appreciation, connection, communication, and understanding are the keys to recruiting, performance, and retention. It s simple, and what does it cost? Your ROA (Return on Appreciation) will be huge! Reprinted with permission from Real Trends 19

22 Feel warm and fuzzy with Northpointe Bank s low rate guarantee. We ll match compe tor rates or give you a $ credit* 30-YEAR FIXED RATE MORTGAGE 3.93 % APR** 360 monthly principal and interest payments of $ with 0.000% points paid at closing. Call today for details Click to get started northpointe.com Member FDIC *Low rate guarantee is available for purchase and re nance rst mortgage transac ons prior to locking in the interest rate with Northpointe Bank. Certain product exclusions may apply. A copy of the compe tor s Loan Es mate or an acceptable alterna ve cost es mate worksheet is required. Compe tor offer must be comparable to Northpointe Bank s loan terms. **Annual Percentage Rate (APR) as of 11/02/15. APR and example payments are based on an owner-occupied single family residence with a loan amount of $150,000, credit score of 740, down payment of 25% with tax and insurance escrows. Base APR is quoted and may vary depending on individual credit history and transac on. All mortgages are subject to credit review and approval. Rates subject to change without no ce. Payment amount does not include taxes and insurance, actual payment will be greater.

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25 If you re like me, one of your dreams has been to own a vacation home along Lake Michigan. If you re unlike me, you ve taken that assertive, albeit risky, jump into second-home ownership and purchased your own piece of heaven. Your vacation home likely represents many things, not the least of which might be a summer gathering place for family and friends, or a place to retire to when the work is finally done. For many property owners, their vacation home also represents a versatile investment property, with the potential to generate money as a vacation rental to pay down an existing mortgage and/or defray the noteworthy expense of non-homestead property taxes. BY BRIAN F. WESTRIN, ESQ. DIRECTOR OF PUBLIC POLICY & LEGAL AFFAIRS 23

26 Over the last 15 years, this valuable option has come under intense scrutiny by many local governments and zoning boards in lake communities concerned with unbridled commercial activity in residential areas. Depending on whom you ask, this scrutiny emanates from citizens with a genuine concern for maintaining the established character of a particular community. These individuals argue about the danger of non-residents taking over their community. Of course, the counter-balance to that concern is that it oversimplifies a very complex problem and represents a distorted view of the private property rights of another. Sadly, the drastic differences in these two perspectives make for a fairly unproductive debate. The debate, often considering a total ban or extreme limitation on the option, is a very important one that should feature the voices of each interested party. Unfortunately, in my experience, it is a debate that often occurs during the winter months, catching interested property owners either unaware or leaving them engaged from afar through their licensed property manager. This article is intended to urge Realtors to work with their clients and interested parties to stay attentive to the plans of their local governments. It is much easier to stay at the table if you re there at the beginning. It is also the intent of this article to provide some basic arguments against a full-scale ban on vacation rentals in a particular community and for cooperative arrangements between property owners and local governments. why now? In the grand scheme, Michigan is relatively new to the debate over In the grand scheme, Michigan is relatively new to the debate over restricting vacation rentals. restricting vacation rentals. Communities across the state have allowed rentals to persist absent any direct language within their zoning ordinances. Further, some communities have elected to be permissive in practice where an ordinance s language may have been construed as restrictive. Vacation rentals have long been a unique means to accommodate the influx of tourism in many small lakeside Michigan towns. In many ways, it has allowed communities to hold in check the rapid expansion of their communities against an influx of resort and hotel properties. This is a fundamental argument against the notion of unbridled commercial activity. The practice of rentals, often for one or two week intervals, allows for use of a property owner s fully furnished home on or near the lake. The practice is a favorable one among tourists who have embraced such intimate options in order to be conveniently nearby one of the many Michigan lakes. Additionally, Michigan lakeside property owners many of whom reside elsewhere throughout much of the year have found an opportunity to maximize the value of their property and to aid in the 24 MICHIGANREALTOR JANUARY 2016

27 THE LONG VACATION payment of property taxes. With the housing market working its way back above water, vacation rentals also offer property owners a unique way to market their home, enticing potential buyers that are introduced to the property through a vacation rental. In some instances, homes have been on the market for over three years. Preventing property owners the ability to find value in their property that has been allowed for many years seems unjust and arbitrary. I am aware, however, that there are opponents to vacation rentals. Often times this opposition stems from unfavorable interactions with renters or the property owners. Those wishing to prohibit vacation rentals have argued that by allowing vacation rentals in residential areas, the privacy interests of full-time residents are interrupted by a stream of renters throughout the summer months. These individuals believe that their property rights, as well as the peaceful environment surrounding the community, are compromised by the vacation rentals. Following that logic, the ultimate effect of a proposed ban would serve to keep outsiders out and preserve the area for only local use. However, in the long run, this logic seems insulated and shortsighted. From both a property rights standpoint and a community welfare perspective, a rationale that places obstacles in the path of potential tourism money for a community seems faulty. There are better ways to deal with a few bad experiences than resorting to blanket prohibition. solutions in search of a problem Michigan Realtors has long supported cooperation between property owners, local businesses and local governments to protect and, in some ways, regulate the practice of vacation rentals to better address the privacy interests of non-renting property owners. Such cooperation also raises the profile and legitimacy of vacation rentals. However, entertaining the idea of eliminating rentals or prohibiting property owners who have historically rented their homes is bad policy. By eliminating vacation rentals, the township would be displacing many potential consumers. The grocery stores, gas stations, and merchants would be faced with losing essential business endangering the character of the community. Further, individuals visiting for the first time would have fewer options available when considering lodging. The issue of rentals may well be a divisive one within a particular community. However, the divisiveness may well stem from misunderstanding and missed opportunity for dialogue. Anecdotally, there are several examples where communities have chosen to regulate rentals as opposed to prohibiting them. A simple online search will yield headlines of debate and the threat or commencement of litigation concerning a particular ordinance that has been proposed, adopted, challenged. A complete ban on rentals is almost always the drastic and most controversial community action often leading to costly legal battles and unintended consequences. There continue to be options to address the perceived problems that may come with vacation rentals. An ordinance can provide for rentals while creating a mechanism for accountability from the renting property owner. Such options have included: 1. Obtaining a business or conditional license 2. Registering a 24-hour agent contact for the property 3. Offer notice and contact information to all neighbors within a particular distance of the rental. 4. Implementation of an enforcement mechanism to ensure compliance. (i.e. ticketing, suspension, revocation) Michigan Realtors believes the benefits of vacation rentals for the community and the property owner far outweigh the perceived negatives. With the promotion of tourism and the corresponding revenue generated for the community, vacation rentals are an often overlooked asset to a given community. With all due respect to the authority of a community s leaders to consider the implementation of rules or express language concerning vacation rentals, any limitation on property rights that may have an impact on broader areas of the community should be reflective of the community as a whole. The conversation is very important. Property owners, merchants, and Realtors should take every opportunity to be a part of the discussion and to help make it a productive, thorough, and thoughtful one. 25

28 LEGAL LINES BY GREGORY L. MCCLELLAND, ESQ., LEGAL COUNSEL, MCCLELLAND & ANDERSON, LLP Realtor Teams Recognizing Some of The Issues Years ago, many Realtors began working together in teams in what was then typically a very loose arrangement. For example, Agents Smith, Green and Brown at Acme Realty would agree, informally, to share the responsibility of providing services to clients. There were few, if any, legal issues that could arise with respect to the informal team, as these agents were licensed to Acme Realty and were compensated directly by Acme Realty. However, over time, at least in some instances, the team concept has taken on a more organized structure, thereby creating a number of new legal concerns. Both brokers and agents should be aware of the potential pitfalls created by these new more formal team arrangements. Assume, for example, that Agents Smith, Green and Brown decide that they will formalize their arrangement by forming a new company. They create a corporation known as Team Smith, Inc. that in turn works for Acme Realty. This arrangement is sometimes referred to as a company within a company. Agent Smith becomes an associate broker for Acme Realty and also for Team Smith, Inc. Smith, Green and Brown then direct Acme Realty to have the commissions earned by all of them paid to Team Smith, Inc. Thereafter, Team Smith, Inc. redistributes the income it receives to Smith, Green and Brown pursuant to an agreement among themselves. In this article, I will address a few of the legal issues that arise in this situation. Independent Contractor Status As most Realtors are aware, recently both federal and state governments are trying to crack down on companies that treat workers as independent contractors who are actually employees. If there is no company within a company, Realtors in Michigan do not need to concern themselves about their independent contractor status as a safe harbor is provided under the Occupational Code. In a traditional arrangement whereby the associate brokers or salespersons have a written independent contractor agreement with their brokerage firm and their compensation from that firm is 75% or more in the form of commissions, then they are irrebuttably independent contractors under Michigan law. The analysis becomes more complicated when a team is involved. There are a number of possible problems that could arise, depending upon how a team is organized and paid. In our hypothetical, Acme Realty is paying the commissions earned by Smith, Green and Brown to Team Smith, Inc. In turn, Team Smith, Inc. is distributing the compensation to Smith, Green and Brown pursuant to the agreement among the team members. There is certainly a risk that the Internal Revenue Service and State of Michigan could claim that the payments received by Smith, Green and Brown from Team Smith, Inc. are either not commissions or, alternatively, are not being paid by their broker, i.e., Acme Realty. Smith, Green and Brown may wish to avoid this risk by having Acme Realty pay them their commissions directly according to the agreement among the team. The situation becomes even more difficult if salespersons Green and Brown become licensed as agents of Team Smith, Inc. Obviously, they could not also be agents of Acme Realty as the Occupational Code does not permit salespersons to be licensed through more than one broker. In this situation, Green and Brown would need to have an independent contractor agreement with Team Smith, Inc. and attempt to receive payments from Team Smith, Inc. in the form of commissions. It may be difficult to persuade the Internal Revenue Service and/or the State of Michigan that the 75% commission exemption applies if in fact the commissions are originally received by Acme Realty and then paid to Team Smith, Inc. for distribution in accordance with the agreement among the team members. Advertising and Insurance Coverage In the traditional company within a company situation, an agent formed a corporation for tax advantages but continued to function solely under the banner of the brokerage firm, i.e., in our example, Acme Realty. However, as the team concept has grown, there appears to be more and more advertising done in the name of the team. There is certainly nothing unlawful about team advertising, so long as the broker s name and address or telephone number appears in the advertisement, e.g., Acme Realty and its address or telephone number. However, once a team formally organizes as a licensed corporation and advertises primarily in the name of the team, the team members need to pay close attention to their insurance coverage. Dissatisfied sellers or buyers who are angry about a real estate transaction will typically sue anyone they think may have liability. In our example, it is likely that a dissatisfied seller or buyer would end up suing both Acme Realty and Team Smith, Inc. It is highly possible that the errors and omission insurer for Acme Realty, 26 MICHIGANREALTOR JANUARY 2016

29 Inc. would decline coverage for Team Smith, Inc., as it is not licensed with Acme Realty. If Team Smith, Inc. has no errors and omissions coverage, there will be no insurance coverage for this claim. As Realtors are aware, the cost of even successful litigation can be very significant. Thus, Realtors working as teams should confer with both their broker and their insurance agent to make certain that they will be covered while operating as an incorporated, licensed team. Michigan Realtors can stay informed of legal issues with updates through our Legal Lines. Supervision and Employees Agents are not the only persons who need to be careful how they organize and conduct business as to teams. Under the Occupational Code, there is no concept of a team. Instead, there are only brokers, associate brokers and salespersons. A broker is required under Michigan law to supervise its salespersons. In fact, in Rule 325 it is specifically provided that a broker shall not contract with a salesperson or a non-principal associate broker who was licensed to the broker to lose its authority to supervise the salesperson or non-principal associate broker. Thus, while legally Team Smith, Inc. is a separate corporate entity, non-principal associate broker Smith must be supervised by Acme Realty and the same would be the case with salespersons Green and Brown if they are affiliated with Acme Realty. Thus, a brokerage firm should make certain that teams within the firm conform in all respects with the policies of the firm. Once they are formally organized, many teams take on employees, whether those employees are licensed personal assistants, unlicensed personal assistants or clericals. It will be extremely important for a brokerage firm to make certain that any employees of a team within the brokerage firm are legally employees of the team and not the firm. As an example, when a team within the firm takes on employees, it may be in the interest of the brokerage firm, e.g., Acme Realty, to have any such employee acknowledge their employment by the team and their non-employment status with the brokerage firm. The brokerage firm simply does not want to have to deal with a claim that a team employee was actually a brokerage firm employee and that thus the brokerage firm was responsible for unemployment, worker s compensation, as well as federal, state and social security withholding. In the near future, the issues addressed in this article along with other issues involving teams will be the subject of a more comprehensive white paper. In the meantime, Realtors working with teams, for teams or who have teams within their company need to understand that as the team model becomes more formal, we are in some respects trying to fit a square peg in a round hole. The Occupational Code is currently structured to accommodate only the traditional broker/salesperson relationship. Likewise, the safe harbor for independent contractor status under Michigan law is tailored only to the traditional broker/salesperson relationship. Realtors forming and operating as teams, as well as firms that are affiliated with these teams, need to deal with these issues at the time of formation and not after the fact. over time, at least in some instances, the TEAM CONCEPT has taken on a more organized structure, thereby creating a number of NEW LEGAL CONCERNS. 27

30 BUSINESS & EVENTS The Business & Events section provides a cost-effective way for members and service providers to advertise to over 25,000 Realtors across the state of Michigan. To have your business card sized ad (2 x 3.5 ) featured in the next issue for only $200 for Michigan Realtors members and $250 for non-members, contact Joe Kras at or jkras@mirealtors.com. Advertise in Michigan Realtor Magazine Michigan s Top Real Estate Industry Publication A publication of Michig an Realtors DECEMBER 2014 An online publication of Michigan Realto rs JANUARY 2015 N CTIO usingbecome CRM TECHNOLa OGY AU PRIVATE REAL ESTATE BROKER and reduces to draw SUCCES Volume 14 Number 1 E BUT Agreements Tax Debate Marketing Service RI H ACT ERP ULEXW T U 7 RIB te the promo ll fight s to exist and wi me that ustry and beco o l als force r ind er izing ve in ou togeth but you l, lie me mobil ues that be ce to co business d iss ce chan do ts an c offi you ssroo publi ve the way ly gra tes for state ha in the on ge ida is the cand ross the a chan Life. RPAC -friendly from ac to make ess RS TOR wer busin their ing REAL, REALTO ve the po tect AC ort n pro supp th RP only ha R ca u are ess. Wi u ll not sin, yo ALTO AC, yo y a RE to RP of your bu of RPAC st wa ting n rt the be contribu regulatio ming pa C) is By ome beco (RPA ment. rdens ine. By est ittee mm ate inv d less bu mach Co n l est, an lobbying l Actio d rea orm litica rship an d tax ref ective eff Po TORS me owne hts, soun rful and REAL The ion of ho perty rig st powe tradit vate pro tion s mo na for pri e in the activ CT RPA 3$& ach ns re utio ntrib co time 000 MAY t re n d s Max Customer Service Transfer PLUS: Replacing a Founder 100 TECH OLOG N Volume 14 Number 4 Extending Summer PLUS: Dangers in Wholesalin g Keep Burglars Out Communic ations Technology Trends Winning Negotiations Volume 14 Number those TAXES in 2016! Y S PRINCIPAL BROKERS NETWORK is how! Or you can just keep PAYING those TAXES. In 2016, take control of your business. PLUS: Developing Raw Talent Appraisal Reporting Buy-and Sell Conditions using today s TECHNOLOGY to reachkeetod pingay s bysaftse CLIEN being smart More Educated. More Experienced. More Committed. Volume 14 Number 2 REALTORS & MARCH Wait! Broker TAX? Franchise TAX? IONEERS AUCTare Sure it s called a fee or split but they the two highest TAXES on your hard earned commissions. You know the TAXES. Federal TAX, State TAX, Social Security TAX, Broker TAX, Franchise TAX! SEPTEMBER 2015 AUGUST 2015 Want lower TAXES on your Commissions? Trends PLUS: Property Management Education Lien Proposal 1 Continuing Appraiser Localization Commercial Broker Safety by Phon e $25, /4 x 11 1/4 17 x /4 x 111/4 8 1/2 x 11 Realtors Quarter 28 MICHIGANREALTOR JANUARY 2016 Volume 14 Number 3 A publication of Michig an Realtors

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32 REALCOMP: REALTOR RESULTS RESOLUTE As we embark on a year renewed, Realcomp s commitment to Michigan REALTORS is forever constant focused on MLS data sharing expansion and providing the tools and resources vital to success, with: Access to over 5,000,000 properties in Realcomp s statewide Public Record Database MLS data sharing that stretches across the entire state, from the West to the East RCO360 o (Coming) our new property centric MLS system, which will integrate MLS and Public Records Start the year off right. Visit Realcomp.MoveInMichigan.com and click Join Today for information about our services and to apply for a free of ice trial. Because Your success is our success. ree trials are available to brand new of ices. Additional conditions may also apply. Phone: Realcomp.MoveInMichigan.com twitter.com/realcompmls