Category Archives: Legal Issues in Real Estate

REALTORS® Committed to Fair Housing

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REALTORS® build communities and believe people have a right to live wherever they can afford to live. This month marks the 45th anniversary of the 1968 landmark Fair Housing Act. Each year REALTORS® recognize the significance of this event and reconfirm their commitment to upholding fair housing law as well as their commitment to offering equal professional service to all in their search for real property.

Fair housing is a serious matter.

It is extremely important for licensees to be aware of local ordinances as well as federal and state fair housing laws. IAR Legal Hotline Attorney Betsy Urbance answers one fair housing-related question in the April issue of Illinois REALTOR® magazine. She also points out NEW fair housing rules relating to “disparate impact” or “discriminatory effect.” These rules became effective on or around March 17, 2013. The rules were drafted by the U.S. Department of Housing and Urban Development (HUD) to give landlords and tenants a clearer picture of what could constitute illegal discrimination in housing when there is a “disparate impact” or “discriminatory effect” even if the initial limitation is facially neutral. There does not have to be an intent to discriminate to violate the rules. Read more online: http://portal.hud.gov/hudportal/documents/huddoc?id=discriminatoryeffectrule.pdf and members can download the IAR Legal Webinar on this topic.

The Illinois Association of REALTORS® fully supports and advocates the practice of equal opportunity in fair housing. It is our pledge to uphold the spirit as well as the letter of the law, through programs, activities and training designed to promote and further the right of equal opportunity in housing for all. We believe equal opportunity exists only where there is complete freedom of choice in housing and we oppose any attempt to interfere with this freedom of choice.

With new members of Congress comes new Federal Political Coordinators (FPCs)

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This week the new Federal Political Coordinators for the Illinois Association of REALTORS®, along with other policy and political leadership, attended the National Association of REALTORS®’ (NAR) Annual REALTOR® Party Policy & Advocacy Conference and Training in Washington, D.C.  They were met with detailed agendas and presentations on everything from the current political climate and predictions of what will become priority issues in the 113th Congress, to detailed discussions on Fannie Mae and Freddie Mac and the future of conventional housing finance.

The Federal Political Coordinators (FPCs) who attended will work with the newly-elected members of Congress on issues that are priority for both NAR and the IAR. Illinois REALTOR® members, Bob Dohn, Cedrick Hunter, Tracey Taylor, Jeff Gregory and Matt Silver spent the first day learning what the key role of the FPC is and NAR expectations. They represent Congresspersons Tammy Duckworth, Danny Davis, Bobby Rush, Bill Foster and Brad Schneider respectively. They will play a key role in educating the members of Congress on the implications and impacts of legislation on real estate and property owners of all types.

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The IAR and NAR housing and finance policy team had the opportunity to meet with HUD Secretary Shaun Donovan this week in Washington, including NAR staff Lora McCray; Illinois REALTORS® Mabel Guzman and Kay Wirth, leaders of the NAR Conventional Finance committee; IAR Housing Policy Advisor Sharon Gorrell and NAR's Charlie Dawson.

Wednesday’s agenda was packed with several experts in housing finance including academics, economists, Congressional staff and analysts who shared their thoughts and points to consider as the country moves forward and the real estate markets continue to slowly heal. Comments were made regarding the future of the Government Sponsored Enterprises (GSEs), servicer issues related to short sales and foreclosure, HUD condominium problems, the Qualified Mortgage (QM) and Qualified Residential Mortgage (QRM) rules in addition to capital markets and liquidity that affects both commercial and residential real estate.

These meetings helped prepare the FPCs, Political Action Committee Trustees, Policy Committee leaders and other attendees for the new legislative cycle and what resources are available from NAR. REALTOR® Party programs were explained and key NAR staff were on hand to present and answer questions on what the program includes.

Also present in D.C. were IAR members who serve in a variety of leadership capacities in NAR policy and advocacy including; John C. Kmiecik, Mike Drews, Chris Tenggren, Mike Onorato, Steve Volkadov, Mabel Guzman, Kay Wirth, Ed Neaves, Jean Crosby and IAR President Michael D. Oldenettel and IAR CEO Gary Clayton.

REALTOR® advocacy squashes fast track pace; more equitable bedbug ordinance sought in Chicago

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Agreed: Bedbugs bad.

Less clear, how to craft a fair policy that addresses the problem in  Chicago that won’t hurt REALTORS®, property owners and tenants.

The Illinois Association of REALTORS®’ Brian Bernardoni testified Tuesday before a Chicago City Council joint committee as part of discussion of a proposed $1,000-a-day penalty for landlords who fail to eliminate bedbugs. From the Chicago Tribune:

“Bedbugs are a serious problem, regardless of economic stature, and the city of Chicago has the authority to declare a public nuisance and regulate it. The issue must be addressed head on.”

Bernardoni told members of the panel that bedbugs were indeed an issue, but raised concerns over unintended consequences the ordinance might create. In his testimony, he noted:

  • The ordinance would be effective 10 days after passage. This is an issue because there is no exemption for existing leases, and no phase-in provision.
  • Tenants could bring bedbugs into a dwelling without realizing they are doing so, particularly in the case of purchases of used or reconditioned mattresses.
  • What happens if a tenant does not alert a landlord of an infestation? Would the landlord be on the hook for the fines, even if he/she wasn’t aware of the problem?

Could tenants be unfairly evicted? If an apartment’s infestation spreads, would others in adjacent apartments be subject eviction? Would landlords use the rule as a means to target people they don’t like? Said Bernardoni in a WLS-TV 7 story:

“Realtors have a code of ethics. This is not the type of behavior that’s accepted. If tenants feel (they have) those problems, there are a number of organizations that represent those individuals and we are more than happy to go after bad actors within our industry.”

Bedbugs are particularly difficult to eradicate and as a result, the treatments are expensive. According to the WLS-TV 7, “Bedbugs have become so prevalent in Chicago that Orkin Pest Control announced they did more business in the Windy City in 2012 than in any other city.”

Bernardoni told IAR Buzz that often it’s not just one unit that would have to be cleansed of the pests if they are found, but all the adjacent units and perhaps even the units above and below the infected unit would have to be treated, too. According to a FOX News article, killing off bedbugs can cost anywhere from $400 to thousands of dollars.

The proposed ordinance did not come up for a vote on Tuesday. Bernardoni said the next step is to work on provisions to address the many questions raised by the ordinance.

January is National Radon Action Month

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The U.S. Environmental Protection Agency (EPA) has designated January as National Radon Action Month in an effort to increase awareness of radon, promote testing and mitigation, and advance the use of radon-resistant new construction practices.

Radon is a natural radioactive gas that you can’t see, smell, or taste. It’s easy to ignore, but it could be present in your home, school, or office. Radon is the second leading cause of lung cancer deaths in the U.S., claiming about 20,000 lives annually, or slightly more than two every hour. The only way to know if you have a radon problem is to test.

Find resources to share with clients from the EPA including A Citizen’s Guide to Radon and download Basic Radon Facts.

More Resources:

The Illinois Emergency Management Agency licenses and regulates the individuals who provide radon measurement and mitigation to the public. Learn about the risks associated with radon and how to reduce radon levels in homes and find county-specific radon information, lists of measurement and mitigation licensees at radon.illinois.gov. Also download Radon Testing Guidelines for Real Estate Transactions brochure.

REMINDER TO ILLINOIS REALTOR®: Beginning Jan. 1, 2013, you need to use the revised Radon Disclosure Form. Members can download on the IAR website (login required) or purchase in bulk from the IAR REALTOR® Store, 800-529-2696.

License Law clarifications and written office policies

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In this fourth and final video, Illinois Association of REALTORS® Legal Hotline Attorney Betsy Urbance discusses the requirement that sponsoring brokers (with the exception of sole proprietors sponsoring only themselves) have a written office policy in place under the Illinois License Law rules. Find other videos in this series highlighting some of the clarifications to the administrative rules of the Illinois Real Estate License Act of 2000 and the complete list of clarifications at IARlicenselaw.org.