An Evolution of Organized Real Estate:

1900- 75% of urban America lives in rented apartments or flats
1900- Sears Roebuck features prefab houses in mail-order catalogue for the first “Craftsman” home
1905- The first bungalows or ranch style homes are built in California
1906- Coldwell Banker established in San Francisco by Misters Coldwell and Banker (Begins franchising in 1982)
1913- The Revenue Act establishes the current income tax system
1915- The National Association of Realtors enacts the Code of Ethics
1917- The Buchanan v. Warley ruling outlaws racial segregation Ordinances (racial zoning)
1919- The first real estate licensing law was enacted in Michigan, followed closely by California
1926- The University of Michigan grants the first Master’s degree in real estate business administration
1934- FHA is created spurring the creation of fixed rate mortgages and mortgage insurance
1938- FNMA (Fannie Mae) is chartered 1947- The “Realtists” organization of mostly black real estate professionals is established
1948- Racially restrictive covenants (CC&R’s) are ruled not enforceable
1949- The first real estate franchise, Gallery of Homes, was established
1949- Realty Executives introduces the 100% commission concept
1950- The idea to build Condos is imported from Cuba via Puerto Rico (By 1974 they accounted for 25% of sales and in 1980 topped 2 million)
1960- Del Webb builds Sun City (adult retirement community)
1963- Three major national referral networks formed (RELO, All Points, Homes for Living)
1966- The National Historical Preservation Act established to use “preservation” as a means of providing housing
1968- The Federal Fair Housing Act is passed. Signed by President Johnson 7 days after Dr. Martin Luther King’s assassination.
1970- Federal Home Loan Mortgage Corporation (Freddie Mac) is chartered
1970’s- Franchise Concept begins
1976- ReMax is founded in Denver. By popularizing the 100% commission concept, it shifted the balance of power between salespeople and Brokers
1974- Real Estate Settlement Procedures Act (RESPA) is passed
1975- The New Jersey Supreme Court rules that zoning laws cannot be used to prevent low-income housing. Housing needs cannot be ignored by municipalities. In 1983 this same court ruled that developers must set aside funds to provide affordable housing.
1978- Variable Interest Rates (ARMs) loans were introduced by a California Savings and Loan
1978-California Supreme Court rules on Wallenkamp v Bank of America bringing about the end of “assumable” fixed rate mortgages on conventional financing
1980’s- Corporate giants acquire real estate companies
1981- Sears buys Coldwell Banker
1982- The ARM is adopted by the Federal Home Loan Bank board
1983- The Federal Trade Commission (FTC) releases its report that in a cooperative transaction, 72% of potential buyers think that the real practitioner working with them is working for them. (This con- tradicted the sub-agency concept used in real estate where the seller was represented by both the listing office and the cooperating office while the buyer was unrepresented.)
1984- The Easton v. Strassburger decision establishes the duty of inspection by real estate brokers (or their agents) in California
1985- Metropolitan Life acquires Century 21
1985- The seller mandated disclosure law is passed in California (form TDS)
1987- California and Hawaii pass first Agency Disclosure laws
1990’s- Consumer centric real estate models and value added services
1991- The 11th District Court of Appeals rules that the exclusive right of REALTOR® members to use the MLS is harmful to other real estate businesses and that it must be opened up. (California opened up membership in the MLS to other real estate licensees in the 1970’s as a result of the Palsson decision.)
1994- Listings became publicly available on the internet
1995- Hospitality Franchise Systems (later known as Cendant, then Realogy) acquires Century 21, Coldwell Banker, and ERA
1996- The lead-based paint and Megan’s law disclosures become federal law
1997- REALTOR.COM launches a proprietary network for listing and electronic transactions.
1998- Niche marketing begins to attract attention
1999- Single office brokerages comprise 82% while only 5% have over three offices
2000- IDX (Internet Data Exchange) provides rules for posting MLS listings on individual office websites
2004- Total membership in the National Association of Realtors exceeds 1 Million
2005- VOWS (Virtual Office Websites) further refines the exchange of listing information between brokerages and consumers

(Researched and compiled by Gary Frimann, Broker)