Maine Commercial Association of REALTORS® - March Newsletter
Frank O'Connor, 2000 President

Commercial Education Programs:

MCAR offers two education programs focusing commercial real estate. "Wetlands, Permitting and Mitigation" is scheduled for Wednesday, March 15 and "Practical Facets of Commercial Real Estate Lending & Debt Restructuring" on Thursday, April 13. Both are being held at the Portland Regency Hotel from 8:00 - 11:00 a.m. have been approved for 3 hours continuing education credit. Registration forms are enclosed.

Property Disclosures:

The Real Estate Commission Rule Making regarding Property Disclosures is complete. Property Disclosures are still required for residential real estate and commercial real estate having a residential component. Therefore, if you are selling a 300 unit self storage facility with on an on site manager's quarters or if the transaction has no commercial component, you should make property disclosures as you always have.

You no longer need, in an all commercial transaction, the portion of the disclosure form dealing with water supply, waste disposal, insulation, asbestos, lead based paint, radon and underground storage tanks. However, the latter could fall under the category of hazardous wastes which could present liability to the seller and you for not disclosing. Also, the seller has independent requirements on some issues such as underground tanks.

For all transactions, you must disclose in writing to a buyer whether the seller is making any representations regarding current or previously known hazardous materials. In addition, you must provide a written statement to the buyer encouraging the buyer to seek information from professionals regarding any specific hazardous material issue or concern. All the above must be provided either before or during the process of preparing an offer. A new Property Disclosure Addendum for non-residential properties which has been developed by MCAR to assist in complying with these requirements is enclosed.

The Disclosure Form has always represented the minimum standards of disclosure incumbent upon a broker. You must always disclose property defects of which you are aware or should have been aware through reasonable diligence. You should also make the seller aware of their potential liability in not disclosing known defects. The disclosure form provides, in some instances, protection for the seller against claims of withholding material information.

The rule making removes some burden that might hold us accountable for quantifying, as an example, the presence and amount of insulation in a large commercial building. However, it does not negate our responsibility to disclose known defects. Finally, we should encourage buyers to seek professionals able to advise them on engineering, systems and hazardous waste issues.

Ritzi Moving:

MCAR Past President Steve Ritzi (sritzi@aol.com) is moving to California on March 15. He has accepted a position with an Internet start-up/e-commerce company. Good luck Steve!

MaineBiz and MCAR:

MCAR is promoting use of MCAR members for commercial transactions in three upcoming issues of MaineBiz - March 20, June 12 and September 4. Readers will be encouraged to go to the MCAR web site at http://www.loopnet.com/org/mcar.

MCAR Fundraising Project:

MCAR again this year agreed to a fundraising project to benefit Family Crisis Services (FCS) which houses battered women and children. The funds we raise are in turn matched through the Maine Association of Realtors Foundation for Affordable Housing. Last year we raised over $6,000, and with matching funds, were able to contribute over $12,000 to FCS. We hope you will consider this personally, corporately or through a service club like Rotary. The clear benefit is that all funds up to $6,000 are matched thereby doubling the contribution. Organizations wishing to become involved may also have the benefit of a speaker from FCS. Please contact John Doyon, the fundraising chair, for more information.

MCAR:

19 Community Drive, Augusta, ME 04330 - phone: 622-7501 - fax: 623-3590 - email: tanya@mint.net