Western Arizona REALTOR® Data Exchange, Inc.

News & Spotlights

NAR Survey finds Like-Kind Exchanges Promote Job, Economic Growth


WASHINGTON (July 9, 2015) — Real estate like-kind exchanges are an important vehicle for disposing of and acquiring properties and support the nation's financial growth, job creation and economy, according to a new report from the National Association of Realtors®.

The Like-Kind Exchanges: Real Estate Market Perspectives 2015 survey of NAR's commercial and residential members found that real estate investors and commercial property owners place a very high priority on current like-kind exchange tax rules; 40 percent indicated that transactions would not have occurred in the absence of the tax provision, and 56 percent said even if the project would have occurred it likely would have been smaller in scale.

Realtors® are active participants in like-kind exchanges; 63 percent of Realtors® participated in a like-kind exchange transaction between 2011 and 2015. The survey found that like-kind exchanges in which Realtors® participated created between 10 and 35 new jobs, mostly resulting from spending on building improvements following acquisition.

"Like-kind exchanges that allow investors and businesses to defer capital gains taxes on the exchange of similar properties bring great advantages to investors, real estate markets and the economy," said NAR Chief Economist Lawrence Yun. "Realtors® and their clients often look for better economic use of existing properties that are underutilized, which helps promote local economic development and increase the nation's gross domestic product."

Internal Revenue Code Section 1031, a provision that has been in the tax code since 1924, provides individuals and businesses with critically needed tax deferment on gains after the disposition of a property as long as the proceeds are reinvested in a similar property through a like-kind exchange. Replacement properties must be identified in 45 days and the transaction completed within 180 days.

Survey respondents said the primary reason that they or their clients participated in a like-kind property exchange, aside from the deferral of capital gains taxes, was for equity to acquire additional properties. Other reasons were for estate planning, portfolio diversification and completion of a development project.

The tax savings resulting from like-kind exchanges are also helping bring more capital into local markets. Eighty-six percent of respondents said the savings from tax deferment allowed them or their clients to invest additional capital and make improvement in their acquired properties; these investments are generally responsible for the creation of new jobs, such as in construction and property management.

According to the survey, in 68 percent of like-kind transactions, Realtors® acted as a broker or agent, and 24 percent participated as an owner or investor in the transaction. A larger percentage of commercial members (76 percent) reported engaging in a like-kind exchange transaction compared to residential members (45 percent). Of the total, 40 percent participated in between 1 and 3 transactions, and 23 percent participated in 4 or more transactions.

Residential properties comprised the largest portion of recent deals, accounting for 27 percent of disposed properties and 24 percent of acquired properties, followed by apartments (17 percent of dispositions and 22 percent of acquisitions). Land assets accounted for 19 percent of dispositions and 17 percent of acquisitions; retail properties accounted for 8 percent of dispositions and 13 percent of acquisitions; and office buildings comprised 11 percent of dispositions and 10 percent of acquisitions.

Investors tend to hold on to their properties for several years; 47 percent of respondents reported their holding period was between 5 and 9 years, and 27 percent indicated a holding period of 10 to 14 years.

NAR believes like-kind exchange transactions are fundamental to the real estate investment sector, and repealing the tax provision would have negative effects across real estate markets and the industry.

"Like-kind exchanges help investors more efficiently allocate capital and resources with less borrowed money into new investments that drive economic activity in communities across the nation," said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark. "Any tax reform plan repealing like-kind exchanges would hurt investors and small businesses, increase financial leverage, weaken growth and the economy, and result in the loss of jobs."

Survey respondents indicated that repealing like-kind exchange tax provisions would reduce equity in real estate; 67 percent indicated repeal would lead to a large increase in financial leverage. Realtors® said the negative result would be reduced purchase money and new construction loans, and increased property holding periods. Ninety-six percent of Realtors® also said real estate values would decrease if like-kind exchange provisions were repealed.

The National Association of Realtors® Like-Kind Exchanges: Real Estate Market Perspectives 2015 report is based on a survey of 49,593 commercial practitioners and 55,160 residential practitioners (total sample size of 104,753) in January 2015, which generated 3,450 responses from all 50 states and the District of Columbia. The survey had a response rate of 3.3 percent. The report is available at www.realtor.org/reports/like-kind-exchange-survey.

Realtors® Add Gender Identity to Code of Ethics

The following is a statement by National Association of Realtors® President Steve Brown:

“Today Realtors® have demonstrated their all-inclusive support of ensuring fair housing opportunities by adding gender identity to their Code of Ethics. As we celebrate 100 years of the Realtor® Code of Ethics, this decision is a fitting example of the Code as a living, dynamic set of principles that define the professionalism that Realtors® bring to the real estate transaction.

“This follows a resolution in 2011 to add sexual orientation to the Code of Ethics. NAR’s Board of Directors has also approved amending the Statement of Policy on Fair Housing, affirming that the right to rent or purchase shelter of choice should not be abridged because of sexual orientation or gender identity.

Learn more about the Code of Ethics at www.realtor.org/code-of-ethics.



Media Contact: Jenny Werwa / 202-383-1193

WASHINGTON (September 12,2013) – The following is a statement by National Association of Realtors® President Gary Thomas:

“Realtors® applaud Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, for initiating a series of hearings beginning today about the future of the secondary mortgage market and the essential elements of sustainable housing finance reform.

“As the thoughtful policy discussions move ahead, Realtors® continue to advocate for a system that ensures creditworthy buyers always have access to safe, reliable mortgages such as 30-and 15-year fixed-rate loans, even in tough economic times when private lenders cannot, or will not, enter the market.

“Our goal is to help Congress, and our industry, design a secondary mortgage market model that will serve America’s best interests today and into the future, and ensure a strong housing market and economic recovery.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

AS OF 7/14/2011 InnoVia Tech Support is limited to offering support to the two latest versions of browsers and systems. Make sure your computer is running on one of two latest system versions and update your browser. The ipad is now fully compatable and new "tablet" and "wireless (smartphone) versions of InnoVia are in programming.

Congress Passes Flood Insurance and Loan Limit Extensions

Before Congress adjourned to return home to campaign for the mid-term elections, two pieces of legislation of critical importance to REALTORS® were passed.

On October 4, Congress passed an extension of the loan limits for Freddie Mac and Fannie Mae (the GSEs) and FHA. Under the bill, which was signed by the President, the current loan limits will remain in place through September 30, 2011. Extending the loan limits was necessary to avoid potential market uncertainty.

Additionally, Congress passed, unanimously, a one-year extension of the National Flood Insurance Program (NFIP) to September 30, 2011. S. 3814 was first approved on September 21, 2010, by the unanimous consent of the Senate and two days later, by the voice vote of the House of Representatives. The bill was signed by the President on September 30. With program authority now extended for a year, it is expected that  attention will now turn to proposals to reform and ensure the financial soundness of the NFIP.

Practitioners Responsible for Full Disclosure

Source: RISMedia (10/29/2010)

Real estate practitioners have the same responsibility as sellers to disclose information they have that affects the “value and desirability of the property,” a California appellate court confirmed this week.

In Holmes vs. Summers, the seller and the listing associate failed to tell potential buyers about three mortgages against the property totaling $1.141 million. The sellers accepted a buyer’s offer of $749,000, but the deal fell apart because the sellers couldn’t deliver clear title.

The would-be buyers sued the real estate firm and the court found that the real estate practitioner had a greater duty to disclose facts affecting the desirability and marketability of the property than he did to protect the privacy of the seller.

Analysts say this decision will make it incumbent on practitioners with short-sale listings to provide specific information about circumstances surrounding the sales, including approvals required for the sales to close.

9/24/2010: National Flood Insurance Extended Through 2011. The National Association of REALTORS® is pleased to report that Congress has unanimously approved a one-year extension, until Sept. 30, 2011, for the National Flood Insurance Program (NFIP). A long-term extension has been a top legislative priority for NAR. Earlier in 2010 the NFIP lapsed, causing major disruptions for REALTORS®, and with the Sept. 30 deadline fast approaching, NAR redoubled its efforts to extend the program. The bill goes to President Obama next week for signature.

Property Panorama now available to WARDEX users at no charge!!! This is the most exciting thing to come our way in awhile. FREE visual tours for all WARDEX Participants and Subscribers. Unbranded tours must be used in the MLS but branded tours will be available for your marketing emails, website, e-newsletters etc!

WARDEX ZipForms library with InnoVia data forms now live.


Settlement is Reached regarding VOW

(Virtual Office Websites)

VOWs requiring users to login to receive MLS data prompted an antitrust lawsuit by the Department of Justice (DOJ) in 2003. Click here for the Podcast explaining the May 27, 2008 NAR and Department of Justice settlement concerning VOWs. (6.59 min.) Also the Podcast explains the important MLS Participant rule which will affect current MLS Participants in May 2009. This rule will be mandatory for all MLSs and is in place to protect our data from licensed brokers participating in a MLS for the express purpose of using our MLS data to distribute and/or sell to the general public (ex. such as Goodlebase, Yahoo, homes.com, zillow.com etc.).

Unauthorized Access

Why You Must Never Share Your WARDEX User ID and Password

You can obtain a login ID for your personal assistant. See Policy 12 Use of Alias.

June 2008: An agent recently shared his user name and password with a personal assistant and title agent. Your local association can set up an alias for your non-licensed assistant who needs their own log-in.  Occasionally, we hear that an agent shared their MLS password with a client. Both of these actions are in violation of RMLS rules and subject to a $2000 fine. User accounts are approved for one individual and should not be shared with anyone.

Unauthorized access puts the system security at risk and, potentially, our customers. User names and passwords should not be shared with anyone; co-workers, family, friends, technology vendors or clients.

The MLS is a core asset of the real estate industry. If unapproved persons access the MLS, they are stealing the data that you provide and pay for. This is also a violation of the privacy of your clients. The consequences of unauthorized access include data harvesting for solicitation, disgruntled former staff altering data, viewing of sensitive showing information, and targeting of vacant property for theft or vandalism.

Protect your asset. Do not share your user name and password with anyone.                                

Beware of Third Parties Seeking Unauthorized Access to MLS Data

When you subscribe to WARDEX IDX you and your webmaster have agreed that data is to be used exclusively on a WARDEX Participant’s firm or Subscriber’s personal website only.

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