STANDARD SUBDIVISIONS
Parcel Acreage # Lots
4 -10acres = 2 lots 140.01 - 180 = 10 lots
10.01 - 20 = 3 lots 180.01 - 220 = 11 lots
20.01 - 30 = 4 lots 220.01 - 260 = 12 lots
30.01 - 40 = 5 lots 260.01 - 320 = 13 lots
40.01 - 60 = 6 lots 320.01 - 380 = 14 lots
60.01 - 80 = 7 lots 380.01 - 440 = 15lots
80.01 - 100 = 8 lots 440.01 - 500 = 16lots
100.01 - 140 = 9 lots 500.01=16 lots+ 1/100 acres

Lem: Our county is about to pass this new sliding scale zoning: http://www.co.rockbridge.va.us/pubhearings/JPH080501.pdf. We need to know our obligations as REALTORS® for disclosure – how they are different – what about existing listings – what about under contract properties …

Lem’s quick response:

I don’t see that it’s the listing agent’s job to do the buyer’s due diligence as to zoning or the suitability of the land for buyer’s purposes.

The agent of the buyer buying development property, on the other hand, should be up to speed on this kind of change, and bring it to the attention of the buyer client. But even then the contract (if one has been entered into) should speak to buyer’s obtaining certain assurances as to zoning and planning approval, and if the buyer has not already reserved that due diligence right, he’s in trouble even before this change.

Like all land-use issues, the commercial broker needs to be able to guide buyers in the basics of due diligence (assuming the buyer is not represented by competent real estate counsel) and to suggest the appropriate provisions be included in the offer. Otherwise, I don’t see the need for any special disclosures, especially by the listing agent.

I’m relieved to check this off my “to do list” and report back to our Association Board of Directors Lem’s note along with my thoughts “…seems to follow along with the “Buyer Beware.”

But not so fast, we have member questions & further concerns. The following are excerpts from a string of emails that I found to be a very interesting lesson on Agency.

Member concerns & questions:

We need to get our membership educated on the new law and how it will affect our business practices. We need to be sure that we do not expose ourselves to an liability for passing along incorrect information to sellers or buyers.

Lem, I’m very concerned about liability for our agents on either side of any transaction and believe that disclosure backed up by documentation is need for this to work.

Lem’s Response:

Pursuant to what requirement do sellers and listing agents have to inform buyers about zoning issues? There has never been such a requirement, and the latest changes to the Code of Virginia make specifically clear that land use issues are beyond the disclosure obligations of listing agents. See Section 54.1-2131.

This is the buyer’s responsibility. Any buyer who buys land to build on should not expect seller or the seller’s agent to determine and inform buyer about how many lots can be carved out of the land purchased. This is the buyer’s responsibility, and the buyer’s alone. (Buyer agents might have some responsibility to alert buyers to the need to check, but even our buyer agents are not expected to be zoning experts.) This information is available from the locality, and if the buyer wants it, that’s where he gets it. He and the buyer agent can determine the role the buyer agent is expected to play, but to my mind, the proper role is not to play zoning expert, but to remind the buyer (if he needs reminding) that the buyer needs to do due diligence about the suitability of the property for the buyer’s purposes.

I would even go further. Listing agents who take it upon themselves to make representations about zoning may do so, but they do so at their considerable risk. If they’re going to render zoning opinions to the buyer, they had better be right. Why would they take on this responsibility?

Further member concerns:

Actually, I’m relieved to know that there is no requirement that listing agents reveal in advertising or mls listings the maximum number of building rights a parcel may have by law and that buyer agents may direct their clients to do their own due diligence in that regard.

I don’t see this as a zoning issue. When a seller, for instance, wants to sell off a portion of his property he will have to clearly state how many building rights are going to convey with it… When it comes to advising a seller client about a suggested listing price or a buyer client on an appropriate offer amount, shouldn’t agents consider this type of information? Should we direct our clients to produce this information for us before we can provide such advice?

Isn’t this information a material fact about a property just like some uncommon easements (mineral rights) or covenants (conservation easements)? If not, please help me to understand why it isn’t. I know a number of experienced agents who see this just as I do.

Is it possible that we practice the profession locally a bit differently than some in other parts of Virginia?

Lem’s response

I think I understand what you’re saying about the importance of the zoning/building lot issue, but where I think we’re getting crossed up is in determining whose responsibility it is to protect the buyer here. Certainly listing agents need to be able to counsel sellers about their affairs in this regard, and buyer agents need to be able to help buyers. But the original inquiry was as to whether listing agents have a duty to buyers to disclose how many houses can be built on a particular piece of land being sold. Ultimately, this is a land-use and zoning issue, because the number of units that can be built on a particular lot is a function of the zoning ordinance you are dealing with. (Building density is always a zoning issue.) I don’t know how else to say it except that sellers of real estate and their agents have no duty to make determinations and then representations to buyers about land-use issues.

Section 54.1-2131 B of the Code of Virginia provides: “A licensee engaged by a seller shall disclose to prospective buyers all material adverse facts pertaining to the physical condition of the property which are actually known by the licensee. As used in this section, the term ‘physical condition of the property’ shall refer to the physical condition of the land and any improvements thereon, and shall not refer to: … (ii) matters relating to governmental land use regulations ….”

I think this is the main confusion. What you say about the advice agents are expected to give their clients is true, but you shouldn’t take it further to impose on listing agents an obligation to do land-use due diligence for buyers. If it’s in the seller’s interest for the listing agent to be involved in the buyer’s affairs, so be it. But the legal duty just isn’t there, other than as necessary to achieve the seller’s objectives. And as I said earlier, there’s substantial risk in making zoning and other land-use representations to anybody.

A member’s conclusion:

It isn’t the listing agent’s responsibility to disclose to a prospective buyer how many building rights a listed property may have just as it isn’t the buyer agent’s responsibility to do the same for his client. If needed, they should both refer their clients to the appropriate authorities or professionals for accurate information.

As agents we all strive to serve our clients to the best of our abilities. The member questions were all good questions, coming from a seasoned agent that works hard for their clients. They take the time to get to know the clients requirements and use for the property, they take their responsibility and duties to their client seriously. This exchange illustrates just how easy it is to overstep our agency obligations; not only exposing ourselves to unnecessary liability but also actually not representing our clients best interest.

Moral of the story : Be the source of the source not the source.

Note: Bold and italics added by Candy Lynn for emphasis.

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Rossi shared a way to keep my overactive mind on track - make a rose. It helps when I’m in a group meeting to keep me focused on the matters at hand, it also helps me clear my mind to sort through ideas when I’m alone.
I now have a large crystal bowl of paper roses that I make when I need to think.

So when you see me sitting in a meeting twirling roses - you’ll know I’m really thinking.

Learn to make the Rossi Rose here: http://therose.rossispeaks.com
Thank you Rossi for introducing me to the ROSE & NLP.

Reminder: Its time to submit your application for Virginia Association of REALTORS® Leadership Academy Program.

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VARealtor.com has this “overview”

The Virginia Association of REALTORS® presents its Leadership Academy Program. Through this program, VAR attempts to identify emerging REALTOR® leaders in the state. We encourage them with motivational activities. We sharpen their leadership skills in the hope they will exert a strong positive influence on the future of the Association and their profession.

While this is accurate, it just barely touches the surface of what Virginia REALTOR® Leadership Academy (hereafter, VLA) is about.

When I was asked to write about Virginia REALTOR® Leadership Academy I quickly said “of course - gladly”, I am passionate about VLA. I sent out an email to a few VLA alumni and current class members and I posted a tweet on Twitter for VLA members to share in 140 characters or less their VLA experience.

Quotes from present and past members of VLA

Julie Emery
To get the 30,000 foot view. To have a say in the future of your profession. To connect with the best in the business.

Jim Duncan
A place to hear good speakers, connect with points of view and people from around the state & leverage collective knowledge & goals. I don’t know if you want to post this, but for me, it wasn’t the lifelong bonding experience it was made out to be; that always felt very contrived to me. I went to VMI – that was a bonding experience. This was a fantastic opportunity to meet other REALTORS® who actually do real estate who care about improving the industry from within the political system in which we all exist. As I said in one of our retreats, it was the first time I had been in a room full of Realtors that I felt comfortable that they all were competent. It was a sad, but telling observation – but true.again, you probably don’t want to post it, but it’s true.

Scott Rogers
Great venue for candid conversations about how we do business — lots of learning to be had from the variety of perspectives that VLA classmates bring to the table!

Lynn Wagner
Wow, what an experience… like none other! The speakers, camaraderie , friendships, work, fun are just amazing. I can hardly wait until the July retreat at Stonewall Jackson Hotel in Staunton. The word is that there will be alumni attending and lots of fun activities! Are we there yet?

Cindy Stackhouse:
VLA taught me more than Leadership skills for VAR, but instead prepared me for a comfort zone of volunteering for my community and charities, as well.

While attending VLA and directing VLA, I made some of the best friends, mentors and resources for the rest of my life. The networking with national speakers, state and local experts and the students themselves enriched me professionally and personally.

Bill Burruss:
Gee!!! for experience. Being around people who care a great deal about their work, their association(s), which was my leadership class, and giving the class the opportunity to learn from other great leaders, our Past VAR & NAR Presidents, is magical. I feel it is important to be around these people. What saddens me after leaving the VAR Leadership Academy is that I feel that we need to be discussing issues or brainstorming more than having meetings. I hope that our Blog on Ning.com will be able to stimulate these type of discussions.

SO what was my experience - all of the above and much more. Shortly before the second retreat I had a life threatening injury, I now refer to as “My Big OUCH” , I went to the retreat against my husbands wishes because I KNEW my VLA classmates would care for me and support me - they did! The VLA Class of 2007 has become more than classmates; they have become a network of advisers, mentors, cheerleaders, referral agents, instructors, all people I can trust. This network extents beyond my VLA Class of 2007 to all the classes.

Make sure to get your application in - remember only 20 REALTORS® are selected each year - make sure you are one of those 20 for the Class of 2009!

Your VLA Experience:
First class education - yes, Leadership skills - yes, network of top REALTORS® - yes, lifetime friends - yes, personal growth - yes, confidence to be my best - yes, fun - yes, hard work - yes, worth the time sent - YES!

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First of all DISCLOSURE: Often I am a dual agent, I work in a niche market - horse properties & farms. I am broker/owner of a small firm Valley of Virginia Real Estate, within my firm I have no possibility of Designated Dual Agency.

When I started in Real Estate I thought seriously about being an Exclusive Buyers Representative but as I started working with buyers & showing farms I discovered many, not all, listing agents of horse properties just did not understand the horse aspects of the property. They were trying to sell the house that oh btw there is a “barn out there too, I’ve never been in it but I think you can store about 6 ponies in it & there’s a riding rink too”. Hint - horse folk usually could care less about the house -they want all the details about the horse facilities. After seeing this type of information more times than I want to count, I started listing horse properties so I could better serve the clients - both sellers & buyers. I guess you could say lack of specific knowledge on other agents part drove me to Dual Agency.

My average time from first contact with a seller or buyer client to closing is often well over a year. I build relationships with clients based on the expected Real Estate expertise & my clients very specific needs which require special knowledge of horses, land, riding styles, hay sources, local instructors, equine vets, show schedules, just to name a few. Most of my sellers require & expect me to be present for all showings - most live in fear of something happening to their horses, dogs, cats. They also know most agents just flat don’t know enough about the horse world to be effective. Buyer clients seek me out because they know I have specialized knowledge of horses & riding.

“Candy has had horses and ridden for a long time and so she was able to understand how functional the farm was. Also, horse people have their own language and she “fit right in” with whoever she showed the farm to”

I’ve had more than one client tell me that if I’d shown up in a fancy car with a dress & heels they would have shared a cup of coffee with me, thanked me for my time & said goodbye. I am one of those blue jean wearing , big loud truck driving agent! So what does all this have to do with dual agency?

On first contact with each seller or buyer I explain agency with emphasis on Single Agent Dual Agency. I let them know up front that my firm cannot offer Dual Designated Agency. I send them home with information on Agency to read. If they are not comfortable with Dual Agency as a possibility, we either make arrangements for referral, identify another agent with another firm that can represent their interests or part ways on good informed basis. This conversation is repeated throughout the process.
Do I recommend Single Agent Dual Agency for everyone? NO!!!
It takes a special REALTOR. One that is a stickler for COE & one that is willing to work hard to do it right. Agency & Agency Law must go hand & hand with the COE. Its hard work, it takes extra time, specific education (I highly recommend taking Marcie Roggow’s Class: Negotiating in Dual Agency), specific consent ( IMHO - above & beyond signing the VAR Form on Agency), specific rules during negotiations, specific education to all parties & above & before all - DISCLOSURE!

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Last night I was exhausted but too excited to sleep, that’s what VAR Legislative & Education Conference does to you! My head was spinning with ideas shared, “friends” met for first time face to face, RPAC, so I was up late in the night writing….

Wow - I’m just wrapping up day two of four here in Richmond at our VAR Legislative & Education Conference.
Click here for Full Schedule of events.
I’m really too tired to be writing this blog but also too excited not to write it.

Day one was a long “1/2 day”.

My first session was on Policy Manuals taught by VAR Legal Guru: Lem Marshall. While geared mostly to the Broker Office poffice manuals, I took many notes about things that also would relate to our Local Association Manual.

Virginia Managers Council hosted Broker Roundtables - speed dating style. 4 tables each with a “date” or host with a pre-selected topic of discussion. Topics included “How to keep a positive attiutude in the office” (my personal office favorite method is to hold a purring cat), Operating a Virtual Office, Business Planning for Office & Agents & Managing the Brokerage Books. More details to come in a later post.

Day 2 has been a full day. This is the day that REALTORS storm the Hill. Morning Brief on important issues & Bills currently in the house & senate then the march or bus ride to the hill for “face time” with your representatives. While I attended the briefing, I decided to take the morning to meet with our local association executive & make plans for our roll out to membership of our new proposed Strategic Plan. Then to meet with Harrisonburg’s Association 2007 President. The exchange of information & spirit of cooperation is profound. Sallye - a licensed VAR Instructor offered to help with some education programs being developed.

RPAC Awards Luncheon and wrap up of the Day on the HIll. VAR’s is the second largest PAC in the state and a well respected for being the voice of property right issues. RPAC goal for this year is lofty & was kicked off with quite the performance by “THE RPAC DIVAS” - you really had to be there for that one!

IMAG - Information Management Advoacy Group. This is my first year on one of the AGs, I must say I am impressed with the depth of knowledge of both the volunteers & the staff liasons involved in IMAG. (I’m very proud to see 3 members of my VLA 2007 class members at the table.) Ben Martin, CAE Communications Director unleashed the social media bug on VAR last fall. VARbuzz.com, VAR Facebook Group, VAR Linkedin Group are all part of the official VAR social media plan. Jovan Hackley, the new Marketing Manager is sharp! look for the new “TOP 10″ postcard - (download the pdf here). Just wait until you see the new member plan he is working on! I’d be remiss not to mention Lisa Noon, VP Marketing & Communications & Scott Rogers, Chair of IMAG.

A side note: There are a large number of Virginian REALTORS that participate in social media conversations on a daily basis with a national “group” of REALTORS. We share market info, tech tools & advice, send & recieve referrals, talk about our day, share jokes and troubles - we consider ourselves friends BUT many have never met face to face. Today several of us met face to face for the first time. Pretty cool experience even if I am the old lady of the bunch! Make sure to read:
A Cynic Converted … “Hello. My name is Jeremy, and I was a cynic.”

As if that’s not enough next was a video blog interview with Ben Martin talking with Tony Arko, Technology Chair DAAR & myself about the use of the Ning platform of social media as a communication tool for our local REALTOR associations. We’ve been sharing information, tips, tools but had never met in person. Boy do I have some great ideas for our new Information Management Committe & their website project!

A quick visit to the I-81 Corridor meeting. The AEs had a few questions & input for IMAG new member project & that wrapped up the daylight hours of the day.

A fast run to drop off computer, then on to the Legisaltive Reception to rub elbows with our elected officials. AND rub elbows is the right term, the pre-registration numbers for this year indicate this will be a record breaking attendence.

Finally, dinner with 3 members of VLA 2007. Then back to the hotel to prepare for tomorrow.

First meeting tomorrow - 7:30 am. Night all! I can’t wait to meet Michael Wurzer, FlexMLS, who will speaking at the MLS Forum!

Note: this is cross posted on Musings from the Valley of Virginia

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None of the listed items are meant as a criticism: it’s just who we are.

I’ve just gone “live” with a gift to my local Association – a private social media network just for members of Lexington-Buena Vista-Rockbridge Association of REALTORS® but hush please don’t tell anyone this could be a “viral, social media event”. For now let’s just call what it is in plain terms - it’s a communication tool for our association members, leadership and committees to keep in touch & work together.

This is the message I sent out to our membership:

I am honored to be part of your 2008 Leadership Team!
During the last few months I have researched many different
venues for improving our association communication.
I have talked with association leaders about tools
they have found effective. By far the best rated has been Ning.

I’ve designed a private site for LBVRAR as a place for
all members, committees & leadership to share information,
photos, files, links etc. This is a work in continual progress!
It is your site! Play with it - you can’t break it! Have fun!

Right now I’m toggling between writing this post, checking email responses, and visiting the site to welcome new members personally. Yes, I’m nervous! I’ve been accurately “accused of being into that technology stuff”. And yes, I am trying to drag about 150 or so folks along with me ;~).

Guess what – 30 minutes after invite and I have about 20 members that have accepted my invite to the site! They’re excited, I’m thrilled. Now to keep the momentum and participation up!

I think we’re on the way to my goal of expanding the sense of community within our Association by improving communication and with that gain more trust in one another.…..to be continued….

Together WE Can…..

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“is a formalized matchmaking process or dating system whose purpose is to encourage people to meet a large number of new people.

In practice folks are rotated to meet each other over a series of short ‘dates’, usually lasting from three to eight minutes depending on the organization running the event. At the end of each interval, the organizer rings a bell or clinks a glass to signal the participants to move on to the next date.”

On the day one of our first retreat, the 2007 class of Virginia REALTOR Leadership Academy speed dated. Our directions, as I recall, were to ask a real estate related question that would be a good conversation starter. I totally failed on my very first speed date.

My question was, “What would you do if NAR, VAR or your local association decided today to do away with the Code of Ethics?” Should spark lots of great conversation – right?

First Response: “I’d quit.” PERIOD - end of discussion.

WOW – great answer! That’s the REALTOR I want to work with – that’s the REALTOR I strive to be.

What’s your answer?

Related Links:
2008 Code of Ethics
The Code is Good Business
The Code in Straight Talk

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