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January 2016 Region 30 CAR Reports

posted Feb 23, 2016, 5:02 PM by Richard D'Ascoli   [ updated May 9, 2016, 7:12 PM ]
































































Nikki Coppa, CAR Director, Chair of CAR's Standard Forms Advisory Committee, Chair Forum on Forms


Three times a year, your Directors attend C.A.R. Business Meetings. We listen, we discuss, we debate, and then we take action on behalf of Realtors® throughout the state of California. Meetings occur simultaneously throughout the first three days, so our Region is spread out to cover our assignments and report back to the group and our members.

The unique thing about the Winter meetings is that is gives us a glimpse of the issues we believe will gain momentum throughout the remainder of the year.


Forum on Forms highlights –

·         This forum used to be a bit dry and only reviewed the form changes. Now, we present the new forms, changed forms, have C.A.R. Legal weigh in with pertinent information, AND showcase new technology enhancements for our members.

·         All form comments, questions and suggestions regarding forms should be sent to carforms@car.org.

·         Forms release times have been moved to June and December.

The following 19 C.A.R. forms were revised:

·         AAA – Additional Agent Acknowledgment :  The modification in paragraph 2 makes clear that the multiple agents named in paragraph 2 C do not also need to sign.  Only one agent needs to sign for the broker in the signature block.  Language was also added to clarify that the form does not need to be signed by brokers and principals from both sides in only applicable to one, such as when being used with a listing agreement. 

·         ADM – Addendum:  The opening caption includes language indicating the form can be used to modify a TDS by the seller and a warning that a right of rescind can apply in such a situation. 

·         CL – Commercial Lease Agreement:  Language was added to paragraph 29 obligating the tenant to obtain insurance if the tenant is responsible for maintenance. 

·         COP – Contingency for Sale of Buyer’s Property:  In the existing language, a seller can require the buyer to remove the property contingency, and loan contingency within 3 days of receiving a notice from the seller.  New language at the bottom of the form satisfies the notice requirement if delivered at the appropriate time.

·         CPA – Commercial Property Purchase Agreement:  Paragraph 14B was modified so that the buyer has the right to reject a seller’s attempt to modify an existing lease, service contract or condition of the property.   In such a case, seller cannot make the change.  Previously if buyer disapproved, buyer only had the right to cancel the contract but could not require the seller not to make the change. 

§  The same change was made to paragraph 15B of the RIPA, the Residential Income Property Purchase Agreement and to paragraph 15B of the VLPA, the Vacant Land Purchase Agreement

·         ESD – Exempt Seller Disclosure:  This form is a revision to the Seller Supplemental and Contractual Disclosure (SSD) form.  It was given a new name and paragraph 2 was added explaining that TDS-exempt sellers are not exempt from all disclosures.

·         LR – Residential Lease Or Month-to-Month Rental AgreementParagraph 3E was added to make clear that rent payments will be applied to earliest amount due.  Paragraph 11E was added to specify that water use (drought) laws supersede contractual maintenance requirements. In paragraph 13 an optional sentence was added and refers to the C.A.R. Pet Addendum (Form PA) if pets are to be permitted on the premises.  In paragraph 34, language was added which, if checked, prohibits the use of portable dishwashers and portable washing machines.  The previously unlimited prevailing party attorney fees clause was modified to cap the amount either a prevailing landlord or tenant is entitled to collect from the other to $1,000.00.

·         LRA – Application to Rent / Screening Fee:  Previously, the tenant’s social security number was identified in paragraph 3C of the application portion of the form.  The number has been moved from tenant information section to screening fee section.  One reason for the change is to permit electronic signing of the application section by the tenant.  

·         PCQ – Notice to Perform Covenant (Cure) or Quit:  Paragraph 3b was added to allow the PCQ to be used for monetary obligations other than rent.

·         PMA –Property Management Agreement:  Throughout the form, the word “Broker” was replaced with the word “Property Manager.”  Language was added to provide that water use (drought) laws supersede contractual maintenance requirements.

·         RIPA – Residential Income Property Purchase Agreement and Joint Escrow InstructionsParagraph 15B was modified so that the buyer has the right to reject a seller’s attempt to modify an existing lease, service contract or condition of the property.   In such a case, seller cannot make the change.  Previously if buyer disapproved, buyer only had the right to cancel the contract but could not require the seller not to make the change. 

·         RR – Request for Repair:  A seller response section was added to the form with 3 choices:  The seller can agree to all of the buyer’s requests.  If the seller does so, the buyer must at least remove the physical inspection contingency and the seller can ask the buyer other contingencies by attaching a Contingency Removal form.  In this case, the buyer must sign at the bottom of the form.  The seller can reject all of the buyer’s requests.  The third option is for the seller to respond using a RRRR form. 

·         RRRR – Seller Response and Buyer Reply to Request for Repair:  The Other paragraph was moved to paragraph 1A of the Seller response portion of the form so that the buyer’s removal of contingencies attaches to other requests.  A default was added to paragraph 1B of the Seller response portion of the form so that the seller automatically asks for the buyer to remove at least the inspection contingency.  The option remains to write in other contingencies to be removed or attach a Contingency Removal form (Form CR).  Paragraph 1B was added to the Buyer Reply portion of the form to allow a buyer the ability to ask the seller to take certain actions without having to start all over by writing a new Request for Repair form (Form RR).   If the buyer uses this new paragraph, then the seller can indicate if the seller does or does not agree in a new section added to the bottom of the form.   

·         SA – Seller’s Advisory:  Language was added to paragraph 4A advising the seller of the benefit of pre-sale inspections, making cosmetic repairs and doing staging. 

·         SBSA – Statewide Buyer and Seller Advisory:  In paragraph 20, addressing Future Repairs and Replacements, language was added addressing the phase out of Freon and its effect on air conditioning units and heat pumps.   Additional information has been added addressing efficiency standards for water heaters.  New paragraphs 35 and 36 address PACE liens and solar panel leases. In paragraph 37 a reference to source material on Homeowner Associations was changed from the booklet in the epubs library to a C.A.R. legal Q&A on the same subject.

·         SMCO – Seller Multiple Counter Offer:  Paragraphs were reformatted and given new headings to more accurately reflect the content of the paragraphs.  Paragraph 4 was added to make clear that seller retains the right to accept other offers and to market the property before a final selection of this particular multiple counter offer.  Perhaps the most significant change was the timing mechanism for buyer and seller acceptance of the multiple counter offer.  Previously, the buyer had to accept and the seller had to reconfirm all within the same 3-day time period.  Now, the buyer has 3 days to accept after the first time seller signs the multiple counter offer.  Seller then has until the fourth day after the initial signing to decide whether to choose this particular counter offer for a binding contract. 

·         SP – Single Party Compensation Agreement:  Language from the listing agreement, advising of benefit of listing property with MLS was added to the form.  A dispute resolution clause, containing standard arbitration and mediation language from the listing agreement was also added.

·         SPQ – Seller Property Questionnaire:  Several questions were added to the Seller Awareness section.  B2 addresses improvements related to water efficiency and renewable energy.  J 5 and 6 address PACE or similar liens and assessments for improvements. 

·         VLPA – Vacant Land Purchase Agreement and Joint Escrow Instructions:  Paragraph 15B was modified so that the buyer has the right to reject a seller’s attempt to modify an existing lease, service contract or condition of the property.   In such a case, seller cannot make the change.  Previously if buyer disapproved, buyer only had the right to cancel the contract but could not require the seller not to make the change. The following 8 new C.A.R. forms were created and released:

·         MSS:  Mortgage Loan Disclosure Statement Substitute:  The new form released in October was meant to comply with a CalBRE Advisory issued 9/14/15 made necessary because of the implementation of the TRID, “Know before you owe” rules that became effective October 3, 2015.  It applies to mortgage loan brokers only.  Loan brokers who meet the TRID requirements by providing a Loan Estimate form will not have to also provide a Mortgage Loan Disclosure Statement if they give the MSS along with the Loan Estimate form.  The MSS notifies the borrower that the Loan Estimate is not a commitment and lets the borrower know how to contact CalBRE to get licensing information about the loan broker. 

 

The 8 new forms being released in December are as follows: 

·         AGAD - Agricultural Addendum:  This form is for use when selling agricultural property with an improved residence. It imposes a duty on the seller to make disclosures of issues common to agricultural areas, including completing the Vacant Land Questionnaire.

·         ARB - Arbitration Agreement:  This form documents an agreement to arbitrate that may not exist in purchase, listing or buyer representation agreements. It could be used, for example, when a buyer’s broker agrees to arbitrate with a seller or a buyer. 

·         CCSPA and CRSPA - Condominium Conversion Subdivision Purchase Agreement and Joint Escrow Instructions;  and the Completed Residence Subdivision Purchase Agreement and Joint Escrow Instructions:  Both of these forms were created at the request of the CalBRE subdivision office.  They have been submitted to CalBRE for review.  If approved, C.A.R.  hopes to obtain from CalBRE a letter documenting that the forms meet CalBRE subdivision requirements.  Once that happens, the letter will be posted on car.org just like the letter for C.A.R.’s New Construction Purchase Agreement. 

§  The condominium conversion form is for a unit that was formerly an apartment but converted to a condominium.  It is applicable for the first sale.  The contract to use for re-sales of condominium conversions would be the RPA.  The completed residence form is for the first sale of a new property with an already built home.  If home not yet built, use NCPA. The contract to use for re-sales would be the RPA.

·         DNA - Delivery of Notices Addendum:  This form is the latest attempt to replace the Receipt and Delivery of Notices to Perform form (RDN) which was removed from the library when the RPA was revised last year.  It provides a way to establish delivery dates when the other side to a transaction is non-responsive.  Rather than relying on personal receipt, delivery of notices can be made by mail or email.  The DNA form should be attached to the RPA when the contract is formed initially.  The DNA form only applies to notices once a contract has been formed.  It does not replace personal receipt requirement to get into contract in the first place.  (This is a direct result of a PSAR member’s request to bring this back. Here you go, Richard!)

·         RCSD-B and RCSD-S:        Representative Capacity Signature Disclosure (For Buyer Representatives) and Representative Capacity Signature Disclosure (For Seller Representatives):  These forms replace the Representative Capacity Signature Disclosure form.  The one for buyers does not include estates as a possible represented party since it is rare that an estate is a buyer. 

·         SOFBN - Salesperson Owned Fictitious Business Name Agreement:  Real estate salespersons cannot own a fictitious business name, only brokers.  This form notifies the BRE that though a FBN was filed in the name of a broker, the salesperson retains ownership of the name.  The form satisfies the CalBRE requirements.  A separate agreement between broker and salesperson is still necessary.  The form does not apply to team names since team names are not considered fictitious business names.

The RPA-CA & RLA were also revised. Here are the highlights:

RLA

·         Paragraph 1 has been modified to include optional addendum if the listing is going to be used for mobilehome properties or properties owned by an estate.  The Probate Listing Addendum (form PLA) will automatically attach in zipForm if the box is checked.  The PLA includes the Probate Advisory.  The Manufactured Home Listing Addendum (form MHLA) will automatically attach in zipForm if the box is checked.  The Manufactured Home Listing Agreement and the Probate Listing Agreement will be discontinued. 

·         Paragraph 4B was added for the seller to identify if any improvement on the property is leased or subject to a lien, such as solar power systems or a propane tank.  Knowing this information early will allow a listing broker to inquire about further documentation which will be necessary under a purchase agreement. 

·         In the box addressing the value of listing a property on the MLS, a paragraph has been added concerning “Coming soon status” and its limit on exposure to the property. 

·         Paragraphs 5B and 5C have been modified so that if exclusions from MLS are authorized, smart forms in zipForm will automatically attach the relevant exclusion form.

·         Paragraph 7C is added for the seller to affirmatively agree to pay for pre-sale reports such as Structural Pest Control and Property Inspection. 

·         Paragraph 16 makes reference to the Trust Advisory.  Since the RCSD-S applies to trusts at the listing stage, the Trust Listing Agreement which had the same content as the RLA but different signature blocks, the Trust Listing will be discontinued.  However, the Trust Advisory will still be necessary in trust listings.

·         At the bottom of the last page an optional reference has been added to make all parties aware that there is a co-listing and an Additional Broker Acknowledgement should be attached. 

RPA

·         Paragraph 14B(5) makes explicit that the buyer has the right to access the property for 17 days.  Even though this access right does not give the buyer any contingency, buyers may want to access the property to take measurements and prepare for any repair work that may need to be done after close of escrow.  If there is an inspection or investigation contingency, the buyer’s right of access stays in place even if the contingency has been waived or removed.  

·         Paragraph 14C has been added.  This is an optional paragraph that only becomes effective if the box is checked.  Under this paragraph, the buyer can simultaneously remove contingencies with the offer by attaching and completing the Contingency Removal form.  In zipForm the CR form will automatically be inserted into the transaction when the box is checked.  By using the CR form, the buyer can remove all or some contingencies with the offer and it should be clear which ones.

Standard Forms Advisory Committee Highlights-

·         The SFAC discussed the comments on the drafts for December release.

o   Contingency for Sale of Buyer’s Property (COP)

§  Request for delay of start of time frames being considered. Language to be revised for April review.

o   Statewide Buyer & Seller Advisory (SBSA)

§  Initials were pulled off pages 1-11 in December. This caused lengthy debate. About half of the members expressed the desire to have them reinstated.

§  After much consideration, the committee decided to leave the form without the initials until it has been in the field longer to see if this is simply an adjustment issue.

·         The SFAC reviewed 31 of the 65 comments received.  The balance were be reviewed via a full (1 hour) committee conference call.

There are always things going on in our communities. Your Directors serve as your voice to notify C.A.R. and get their help or guidance when needed. If you have questions or concerns that you feel should be addressed, you need to let us know so we can take action. Please feel free to email me (nikki@callnikki.com) with concerns you feel need to be addressed at CAR. 



Minerva Garcia, CAR Director

This winter, I had the honor and privilege of attending the California Association of REALTORS Business meetings.  It was my first time attending as a C.A.R. Director and I was able to take action on behalf of Realtors throughout the state of California. We attend three business meetings a year and each one is four days long. The first three days are meetings in break out session form with a caucus at the end of the day to report back to our region and members. Day four is impressive. This is where all of California's Board of Directors meet, discuss and either vote to pass or not to pass action items. After attending our meetings, our role as a director is to report back to you, our members. 

Below are my Committee Assignments followed by any highlights and Action Items. I have also included the Mission Statement for each committee assignment. Reading the Mission Statement really helped me understand the purpose and goal for each committee.

  • Home Ownership and Housing

MISSION STATEMENT: The Home Ownership Housing Committee is a Policy Committee. Its mission is to implement C.A.R. policy on home ownership issues in the legislative and regulatory arenas. It has original jurisdiction over the following issue areas: Common Interest Developments, Housing Policy, and Manufactured Housing.

There was one action item  at the Home ownership and Housing meeting. The following Action Item Passed.

1. That C.A.R. “SUPPORT” changes in the Fannie Mae and Freddie Mac guidelines so Fannie Mae and Freddie Mac will also guarantee a mortgage secured by two manufactured homes, or by a combination of a single stick-built and manufactured home on the same lot.

For briefing on this topic please click here >>>>  GSE Manufactured Housing Guidelines

  • Professional Standards 

          There have been changes to the C.A.R. Professional Standards Manual for Arbitration Enforcement Policy. At its April meeting, the C.A.R. Professional Standards Committee passed the following motion: “That C.A.R. adopt the arbitration enforcement policy as set forth in the Arbitration Enforcement Policy Issues Briefing Paper, and that staff implement such policy through amendments to the California Code of Ethics and Arbitration Manual to be effective January 1, 2016. This motion is conditioned on N.A.R. adopting a mandated arbitration deposit protocol that allows an alternative for arbitration enforcement by states. This motion was ultimately adopted by the C.A.R. Board of Directors. As expected, at its May meeting N.A.R. did adopt a mandatory arbitration deposit protocol allowing for an alternative for arbitration enforcement by state associations. N.A.R. has confirmed that C.A.R.’s arbitration enforcement policy is an acceptable alternative that complies with the new N.A.R. policy. As a result, C.A.R. set about changing the C.A.R. Professional Standards Reference Manual for 2016 to conform to the new C.A.R. arbitration enforcement policy. These changes became effective as of January 1, 2016.

 The changes are as follows:

  • California Code of Ethics and Arbitration Manual: Section 70 was extensively revised.

The revisions include:

(a) Judicial Confirmation; Costs and Fees.

(b) “Show Cause” Hearing. 

(c) Conducting the “Show Cause” Hearing. 

(d) Action of the Directors after “Show Cause” Hearing. 

(e) Failure to Make a Payment Pursuant to a Payment Plan.

(f) Requirements for Enforcement of Suspension. 

(g) Publication

  • Implementation Guidelines – Arbitration: Section E.4 was extensively revised
  •  Arbitration Forms: Form A-13 was revised, and new Forms A-24, A- 25, A-26, A-27, and A-28 were created
  •  Appendices:  

      - The Administrative Processing Checklist for Arbitration Complaints was revised
      - Presiding Officer’s Statements for “Show Cause” Hearing was created 

      - Ability to Pay Checklist for “Show Cause” Hearings was created 

      - Notice of Final Action Form Letter was revised

Because these are changes to the C.A.R. Professional Standards Manual for Arbitration Enforcement Policy, I highly recommend that you take the time to read about the changes in detail at the link provided below.  You can also find sample forms for "Show Cause" Hearings here. 

CLICK HERE >>> Changes to the C.A.R. Professional Standards Manualfor Arbitration Enforcement Policy 

  • Land Use and Environmental

MISSION STATEMENT: The Committee is a Policy committee. Its mission is to develop C.A.R.'s land use and environmental policy agenda. It has original jurisdiction to evaluate legislation and regulation in the following issue areas as they relate to real estate: Environmental, Land Use and Zoning, Property Rights, Resources, Subdivision and Development.

For Environmental Issue Area, Fred Weston the issues chair discussed AB 1500, California Environmental Quality Act. This was the only item for environmental issues area. 

For Land Use and Zoning Issues, Tim Brigham, Issues Chair, Discussed several issues. One of them was AB 1303, Subdivision Map Act and our position was to support.  The topic we discussed in more detail was on Federal Housing Administration’s Proposed Guidance on PACE Liens.  The Federal Housing Administration (FHA) it would be proposing final guidelines on Property Assessed Clean Energy (PACE) liens. While no date has been provided on when the final guidelines will be issued, the announcement stated that (1) PACE liens will have to preserve payment priority for first line mortgages through subordination, (2) The property with the PACE lien cannot exceed FHA's maximum combined loan-to-value ratio (100% for purchase). (3) PACE liens must be formally recorded and identifiable to a lender through a title search, (4) PACE programs must comply with applicable federal and state consumer laws and should include disclosures to and training for homeowners participating in the program, (5) PACE programs should finance projects that are cost-effective and reduce the net energy requirements as measured by approved Department of Energy methods, and (6) PACE programs should require notification of mortgage holders of record when a PACE Assessment has been placed on the property.  Our position is in support of the proposed guidance. 

  • Business Technology Forum

For the Business Technology Forum there was a panel of speakers who represented different facets advanced visualization in Real Estate applications. The speakers focused on Drones and how they have changed our business. The speakers included

-Michael Izquierdo Beverly Hills Aerials – Licensed Drone Pilot

-Danielle Corbett, Aviation Safety Inspector, UAS Integration Office, FAA (via video teleconference) Address Current and Future Anticipated Regulations 

 

-Stephanie Spear, Regulatory Policy Representative, NAR NAR’s activities in the unmanned aircraft space, special considerations for REALTORS®

-Travis Shields, Owner, Westside Drone 3D visualization using Matterport, Floorplans, Annotations 

The presentation will be posted at www.CAR.org for more detailed information. 

  • Global Real Estate Forum

The Global Real Estate Forum was led by Oscar Wei, Senior Economist. The link below is to the slide show he presented.  It is extremely detailed and worth taking a look at if you would like to know more about International Buyers in our market. 

To view the slide show presentation please click here >> International Buyers in the California Market

Also make sure to stay connected with Research by following them on Facebook @ CARResearchGroup, Twitter @ CARResearchInfo and at Housingmatters.car,org

I am excited to be able to share everything that I learned at the Winter C.A.R. Meetings with you.  There are always changes happening in our individual communities that affect our clients and our industry.  We have a voice and have the ability to make changes that can help impact our entire community, cities, regions and wonderful State. If you have input, feedback or issues you would like to discuss, please let me know how I can take action. 


Anthony Andaya, CAR Director, PSAR 2016 President


Housing Affordability Fund Committee (HAF):  Mission Statement: The CALIFORNIA ASSOCIATION OF REALTORS® Housing Affordability Fund plays an active role in addressing the ongoing housing affordability crisis facing our state. The fund will raise and distribute funds and partner with other groups to promote housing and homeownership and address all housing opportunities locally and statewide.

 

HAF Committee Is primarily a fundraising committee at C.A.R. As you can read in the above mission statement its main objective is to raise funds in order to distribute them accordingly in order to promote homeownership. The HAF committee at C.A.R. generally hosts two main fundraising events annually. One is the Casino Night that usually takes place at C.A.R. Legislative Meetings in Sacramento annually. The other is an annual Golf Tournament they host at the fall meetings. There are also several other smaller events like the annual raffle and bowling events that are hosted by HAF all in order to raise

funds. These funds are often disbursed in the form of grant to local associations that create proposals and plans that will help promote homeownership. An example would creative programs like Lodi AORs Energy Program where they received a grant to help credit clients who bought homes with their REALTORS® and opted to get an energy audit performed on the house. The grant and program allowed their REALTORS® to offer their clients a potential credit if they chose to perform an energy audit which in turn helps them make homes more energy efficient, which makes the home more affordable, and the

community benefits from better air quality and reduced carbon emissions. The owners cost of the audit

is reduced through the credit that comes from the granted funds from HAF.

 

PSAR as well as all the other local associations across the state can all apply for such grants from HAF and if granted usually end up being mutually beneficial. As your 2016 President Id like to let you know that we will make it a goal to apply for such a grant so long as we can get membership participation in helping to create a program that could provide value to homeowners and promote homeownership. So please if you have any ideas as you read this even if you think they are off the wall, we ask that you submit them to us for review or refining so that we as REALTORS® can provide value to the communities we serve. Email all ideas for HAF grant proposals to President@psar.org

 

Link to and grant program info on sidebarhttp://www.car.org/members/haf/

 

 

Young Professionals Network (YPN) YPN helps young real estate professionals excel in their careers by giving them the tools and encouragement to become involved in four core areas:

 

·      REALTO associations. Attend REALTOR® conferences and pursue leadership roles with their local, state, and national association.


·      Real estate industry. Take an active role in policy discussions and advocacy issues; be informed about the latest industry news and trends.

 

·      Peers. Network and learn from one another by attending events, participating in online communication, and seeking out mentoring opportunities.

 

·      Community. Become exceptional members of their community by demonstrating a high level of

REALTO professionalism and volunteering for causes they feel passionate about.

 

During the 2016 Winter Business Meetings the C.A.R. YPN Forum had a great meeting. They also hosted a statewide YPN networking event at the House of Blues. Both events had a great turnout and left attendees yearning for more info.

 

The Forum was jam packed with great presenters and even better ideas for YPNers to take home and back to their local associations. NAR president Tom Salamone was in attendance at the form and spoke to the YPN crowd regarding our active role in leadership. He emphasized that we should not think of ourselves as the future leaders of C.A.R. but as todays leaders and stewards to the future generations to come. We also had a great speaker Nick Solis from the Contra Costa AOR who is also a 2016 Vice Chair

of the YPN at C.A.R. speak to the crowd about the importance of donating and taking an active role in the REALTOR® Action Fund (RAF) and REALTOR® Political Action Committee (RPAC). Many of the members dont realize it but politics and lobbying is the backbone of what their associations do locally, statewide, and nationally. Politics is often the least appealing to general membership but is uniquely the single most important aspect in our business and industry. Politics is what at an instance can change the way we are able to freely do business. It can change our client’s ability to own. Without supporting RAF and RPAC you may one day be out of a job or unable to help clients get into homes because of laws or regulations that if not fought with powerful force will change the ability to realize the American Dream. The YPN forum was also host to CEO John Reyes from Social Networx which is primarily a video

marketing and web development company. John spoke to the group about the power of leveraging

video marketing in their business and gave us a good takeaway that one 1 minute video is as impactful as you sharing 1.8 million words online. ͞Based on that, I guess I should have done this all via video.͟ Lastly the YPN Forum had round tables to discuss key topics for YPNers and allow them to ask questions to YPN leaders from across the state.

 

Links to YPN: Locally: http://www.psarypn.com/ Statewide: http://www.car.org/members/ypn/ National: http://realtormag.realtor.org/ypn

 

Link to RPAC info: Locallyhttp://www.psar.org/rpac Nationally:

http://www.realtoractioncenter.com/rpac/about-rpac/

 

Video link to John Reyes of Social Networxhttps://youtu.be/B_DAQ1xI1oI

 

 

 

Public Policy Forum:  Is a forum where often known as a guide to action taken by C.A.R. with regard to a class of issues in a manner consistent with the law and industry customs.

 

The PPF topic of discussion was Drones. The Forum hosted a panel consisting of guest speakers as follows; Gus Calderon the founder of Airspace Consulting, Stephanie Spear N.A.R., Comm Reg. Policy Representative, Dean Griffith Senior Attorney, FAA, & Mark Burnz Owner of Burnz Eye View. Gus spoke


about the landscape and what drone rules and regulations will look like or could look like in the future. Since Airspace is federal territory which requires a pilot’s license to operate within how will flying drones from the ground pan out legally and what requirements will be mandatory to operate. Stephanie spoke about NARs views on Drone usage. They recognize the technology as being an incredible tool for realtors however with a large potential for risks and what we may need to look out for in the future.

She stated that all REALTOR usage of drones should follow the rules and guidelines and is often better

left to professionals who will assume the risk. There is a waiver process for usage for individuals and business owners looking to utilize drones for commercial purposes. issues related to safety, privacy, insurance and the regulatory framework continue to evolve. Dean Griffith spoke mainly about the requirements of piloting an unmanned aircraft and the strict rules behind this. Mark Burnz is a drone operator primarily for the Real Estate business and he talked about the advantages of drone

videography and pics in a real estate business and his fear that regulatory rules and costs will become so

high that most operators in his position may get priced out of the market. Realtors are only prone to pay so much to have such marketing capabilities. All in all it was a great forum you can find plenty of info and more on this topic by visiting NARs website www.realtor.org and searching ͞Drones͟ in the search box.

 

 

 

As always thank you for being a valued PSAR, C.A.R. and NAR member. We will always strive locally to do best by our members and remain San Diego Countys most respected Association of choice.



Sarah Heck, CAR Director, 2016 President Elect

For those of you who have read my reports in the past, you know I have a passion for attending meetings where issues are discussed, debated, and deliberated.  Some of my favorite committees are: Housing, Federal and Legislative.  This year however, my assignments as a C.A.R. director will be slightly different.  During my 2016 directorship, my attendance will focus on leadership training as I am now in the honored role of PSAR, president elect.  C.A.R. offers quite a bit of support for incoming leadership…more so than I was aware of.

In contrast to my serving in years past, my schedule was jam packed with forums, seminars and trainings rather than committee meetings and issue debates.  Hopefully this report will help provide insight to those of you who may be considering a leadership role in the future.  Whether your volunteerism is at the local level or state level, please know that both PSAR and C.A.R. encourage your participation and will do all they can to support your leadership journey.

Member/Director Forum:

The first meeting I attended was the member director forum.  This is where the current C.A.R. leadership addresses the membership with an overview of what’s going on in the industry.  They focus on hot topics and legislation we should be aware of.  As is often the case with the winter meetings, the agenda was quite light with regard to legislative issues.  We generally see a bulk of these in our spring meetings where we attend our legislative day and Capitol Hill visits in Sacramento.

Presidents Breakfast:

Networking is a huge part of these meetings.  By engaging in meaningful conversations and creating a rapport with other associations, we are able to get feedback and ideas that can help strengthen our own association.  In an effort to facilitate introductions, the current C.A.R. president holds a special breakfast and invites the current president and president elect of each of the local associations.  At this breakfast we had the opportunity to listen to C.A.R. President, Mr. Pat Zicarelli, discuss his passion, and provide insight in to how we can use our passions to help grow our associations.  We also got to hear other associations stand up and speak to positive experiences their associations were having.  Information was shared freely and there was a genuine effort made by all participants to engage and contribute.  Many of the ideas discussed were things that we here at PSAR already do or that weren’t applicable for an association of our size.  However, there was one idea shared by another association is actually something PSAR set forth to do via their strategic plan this year.  A quarterly broker breakfast to encourage local broker participation in local real estate related issues.  They expressed how well this was working to help combat local issues, create new working relationships and give a forum for brainstorming and future development.  Stay tuned to PSAR to find out when our broker breakfasts will be held.  We highly encourage managing brokers to attend and be part of the broker breakfast mastermind sessions.

Media and Video Training:

This was a great class that gave local association Presidents and President Elects the opportunity for some hands on experience.  Initially there was a presentation done on the “do’s” and “do not’s” of media and video conduct.  After that, people were brought up for some role-play and mock interviews.  The goal of this class is to really prepare the AOR President for any public addresses they may need to make.  Although some of the fundamentals may seem intuitive, the practice is essential to ensure you don’t misspeak as a leader representing your AOR.

Risk Management:

This is always one of my favorite meetings to attend. It usually starts off with an affiliate or two giving a presentation, followed by each region representative giving a brief issues report.  These reports, although short, are incredibly insightful.  They allow C.A.R. leadership to keep their finger on the pulse of issues happening throughout the state.  I always find it amazing how some issues seem to be universal and then others very area specific.  The icing on the cake at this meeting, is that Gov Hutchinson, CAR Assistant General Council, gives a risk management update at the end of the meeting.  You can Gov’s realtor risk management reports at www.car.org.  Here is a link to the legal Q & A’s which may be helpful in your day to day business.  http://www.car.org/legal/qa/2016revisioins/.  The hot topic right now seems to be Realtor Teams and how they are advertising themselves.  We had the honor of hosting Gov Hutchinson here at our local association just weeks after the C.A.R. meetings.  View this short video for some quick advice from Gov on how to keep your team in compliance.  https://youtu.be/YCp5v_EtEjE

Making moments count:

As I mentioned earlier in my report, networking is a huge part of what we do as your C.A.R. directors.  Not just with other AOR members and directors, but also with C.A.R. leadership.  This is something that I sometimes find challenging.  It can be intimidating to be in the presence of such great minds and such passionate energy.  However, it’s my duty as one of your appointed directors to make an effort to connect with leadership at C.A.R. and waive the PSAR flag.  I was honored to be able to share conversations with the current President of C.A.R. Mr. Pat “Ziggy” Zicarelli during our winter meetings, and I look forward to future opportunities to do so.

 


 

Installation Dinner:

My report would not be complete if I didn’t mention the incredible installation dinner for the 2016 C.A.R. leadership.  Although I have been a director many years in the past, this was my first time attending a C.A.R. installation.  Let me tell you…it did not disappoint!  The highlight…wait for it…a private 2 song concert performed by the close personal friend of the incoming President…Mrs. Pat Benetar!  She can still rock it!  #loveisabattlefield #ilovepatbenetar #childofthe80’s

 





Jeff Campbell, CAR Director – Nominating Committee, Taxation and Government Finance, Risk Management and Consumer Protection, Public Policy Forum, California Bureau of Real Estate

 

It is an honor to be one of your representatives for region 30 at our CAR business meetings. Region 30, which once was comprised of East County, South County and Imperial County, is now made up of only PSAR. GSDAR is their own region and NSDCAR is their own region. Like the make-up of our three associations in our region, San Diego County also has three CAR regions.

As a representative on Risk Management and Consumer Protection, it is my duty to identify trends and issues that maybe or are putting REALTORS® and or their clients at risk.  A concluding report will come out within a month which features these issues as they are reported across the state of California. 

                Three concerns came out of our region:

1)Agents are hesitant of reporting MLS and Ethical violations to the Association. Reasons include, having the time and not wanting to affect a current transaction of potential transactions. REALTORS® fear that taking time to report and then attend the hearing is a waste of time. Just the opposite is true. What is a waste of time, is spinning your wheels trying to fix what an unethical agent broke. Wasting time is backtracking, making extra notes, calling the agents manager and discussing, arguing and drinking extra wine when you get home. We self-police and each agent in their career must be dedicated to helping others in the business. Sometimes that means reporting them so they can get further education from a different source.

2)Agents not verifying and correcting, when needed, third party, on-line real estate sites. Zillow, Trulia, and other on-line real estate sites often have incorrect information and bad valuations on individual properties. Agents are quick to curse these sites yet take little action. Many sites allow agents to have free profiles and claiming rights to their own listings. This is an extra step not provided by MLS groups. If agents want the most correct data displayed on the internet, they must take charge, claim listings when possible and, manually correct all errors.

3)Coming Soon Signs. The problem with “Coming Soon” signs are that agents are not putting the rider “Never” before that sign. Agents with integrity use that sign because the property is genuinely coming soon to the MLS. Other agents may use it in hopes that they round-trip, double-dip or otherwise don’t co-op and troll for buyers that are represented only by the listing agent.

This forum widely disperses their collective report for CAR committees to take corrective action if deemed appropriate.

In Taxation and Government Finance, it was moved that That C.A.R. "SPONSOR" legislation to eliminate the 3 1/3 % real estate sale withholding requirement under CalFIRPTA for U.S. residents, but delay introduction until it is likely to be approved. As it is difficult to submit a bill this late in the legislative session, a submission likely will manifest later in the year.


Norma Scantlin
, Chair CAR Membership Committee

The Member and Director Forum is a meeting held on the first day of the meetings to inform those in attendance of some of the highlights becoming important for the membership.

 The Public Policy Forum was discussion regarding Drones.  The speakers were from the diverse field of regulations of drone use in the real estate business.   It was informational and they highly suggested that if you use a company to film your listing via a drone that they have an insurance policy that will cover any problems that may arise.

 This year I will be representing PSAR on the Investment Housing, REALTOR Action Fund, Membership Committees and Key Contact to Assemblyman Brian Jones.

 Investment Housing Committee will be watching the following legislative bills as they are voted upon.  The bills are SB 593 (McGuire) Vacation Rental Hosting Platforms; SB 814 (Hill) Excessive Water Use: Residential Customers.   The Committee  recommended that C.A.R. “OPPOSE UNLESS AMENDED” SB 814 (Hill), which seeks to subject all residential customers to a fine of at least $500 for water used above the defined local standard for excessive water use, unless SB 814 is amended to prohibit urban retail water suppliers from collecting fines imposed for “excessive water use” from a property owner if the account was established by the tenant or the property has a master meter.  The Committee also recommended that C.A.R. “SUPPORT” changes in the Fannie Mae and Freddie Mac guidelines so Fannie Mae and Freddie Mac will also guarantee a mortgage secured by two manufactured homes, or by a combination of a single stick-built and manufactured home on the same lot.

 The REALTOR Action Fund Committee encouraged all the representatives from the regions to go back to all their associations and educated their membership the importance of donating the total amount of doing business which is $196.  The REALTOR Action Fund monies go to represent C.A.R. members at the governmental levels to protect our property rights at every level of our realtor business.  We have been presented a goal to have 17% of our membership contribute an additional $20 to the REALTOR Action Fund this year.  Please contact me or go into the local office in your area and donate to the fund.

 Membership Committee submitted 95 names to the Board of Directors for Honorary Membership in C.A.R.  To receive this honor one must have been in continuous membership with C.A.R for 25 years and be 75 years of age.   The nominees were approved at the Board of Directors.  The Committee this year has been given the task of reviewing the guidelines to receive this honor.  I will keep everyone informed.  During the committee’s allotted time, we had presentations regarding Zipforms and Client Direct.  Client Direct has a new format for the members to use.  Remember that this is a Free Benefit to you.  Be sure to check it out.  The Committee will be having a 90-second video contest this year to have each association share how they involve their members.  I am just not a member of this committee but serve and represent you on the Committee as the Chair. 

 I also am the Key Contact to Assemblyman Brian Jones.  There was a meeting held for all the Key Contacts for the upon coming C.A.R. meeting in April at Sacramento. 

 If you ever have any questions, please be sure to contact me. For more information regarding the meetings that were held in Anaheim, please reference the online information at: http://www.car.org.  

Lupe Soto, Director & Legal Action Fund Trustees

REPORT ONLY: The trustees have reviewed 8 cases since the October 2015 meeting, and approved two amicus briefs at our January 27, 2016 meeting.  The two approved cases are as follows:

Gill and Lucky 777 v. Aires.  The trustees approved funding $7,500 as well as an amicus brief on the issue of whether filing a lis pendens on a broker’s client’s property, which the court has expunged, is slander of title. 

Golden Gate v. Alameda County.  The Trustees approved filing an amicus letter supporting the granting of a hearing before the California Supreme Court on the issue of whether a nonresident taxpayer can challenge the validity of the parcel tax through the courts if the taxpayer did not challenge the validity of the tax within 60 days after its enactment.  Both the trial court and the appellate court had ruled the taxpayer had no remedy.  As of February 18, 2016, this case has been rejected by the California Supreme Court.  

Below is an update on Open Cases: 

CASE NAME

CASE SUMMARY

COURT

ATTORNEY

STATUS/RESULTS

926 N. Ardmore v County of L.A. 2015

S222329

Does a change in ownership of one legal entity which owns another legal entity which itself own real property trigger a documentary transfer tax if the change of ownership triggers a reassessment for property tax purposes.

California Supreme Court

June Barlow

Neil Kalin

Case fully briefed including amici.  Waiting for oral argument to be set.

Horrike V. Coldwell Banker Residential

Whether an individual real estate licensee who lists property for sale and works for a brokerage company that is a dual agent in a real estate transaction has a judiciary duty to a buyer that is represented by the same brokerage company but through a different real estate licensee. 

California Supreme Court

June Barlow

 Neil Kalin

Case fully briefed and awaiting oral argument to be set.

Gragg v. IRS 2014

CV 12-03813-YGR

Whether a real estate agent can deduct passive rental losses from ordinary income even if the agent did not materially participate in the rental activity.

9th Circuit Court of Appeal

June Barlow

Jennie Li

David Radmore

Waiting for oral argument to be set.

CBIA v. City of San Jose 2013

S212072

61 Cal4th 435 (2015)

Whether the local government that requires a developer to include low or moderate income properties as part of the development, or to pay an in-lieu fee, must establish that the requirement is reasonably related to the development’s impact on affordable housing; or whether that ordinance is merely an exercise of the government entity’s policy power and thus subject to a different and lower level of scrutiny. 

United States

Supreme

Court

June Barlow

Neil Kalin

Petition for Writ of Certiorari at U.S. Supreme Court filed 9/14/2015.  On Docket for Justice conference 1/22/2016.  Expect decision shortly thereafter.

Center for Biological Diversity v. CA Dept. of Fish & Wildlife (Newhall) 2015

S217763

Whether a CEQA challenge to an EIR can go forward if: 1). The initial objections prior to approval were too generic to put the developer or regulator on notice of specific problems and 2). If the factual determinations by the regulatory body are reasonable. 

California Supreme Court

June Barlow

Jenny Li

Decision filed 11/30/2015.  CEQA challenge to approved EIR permitted and development put on hold.   62 Cal.4th 204

Lunch, et al. v. CCC 2014

S221980

Is a permit that is valid for only a limited number of years, a lawful condition on development?

California Supreme Court

June Barlow

Jennie Li

David Radmore

 

 

The other case that I would strongly recommend that we all pay attention to is the Bararsani v. Coldwell Banker case.  This is the case that called into question whether agents should be classified as employees or independent contractors.  It was settled for $4.5 M.  It was just settled in January, 2016.  In total there were approximately 5,600 members of the class action lawsuit.  After paying the attorney’s fee of $1.5M, it is calculated that each agent will be receiving a little over $500 compared to the cost of the litigation!

This topic will be back.  Relationship between the broker, the agents, and the agent assistants is a very HOT topic.   Let’s all keep in mind that at the end of the day, the responsible person for all activities in the brokerage is the Broker.   So, who is responsible for the agent assistants, transaction coordinators?  Are the assistant’s employees with a W-2 and from whom?  Are they independent contractors with a 1099?  Who is responsible is there is a problem?  These are some of the questions that are being considered for interpretation.

 

Thank you PSAR members for the opportunity to represent you as one of your CAR Directors and as a Trustee for CAR’s Legal Action Fund.