SRCAR Connect

Archive for November, 2007

Supra Update/PBX Upgrade

Dear Valued Customer, On Wednesday, November 21 starting at 6:00pm PST through Sunday, November 23 at 5:00am PST, Supra will be conducting a telephone system upgrade. During this time the phone system at the call center will be unavailable which will already be closed for the Thanksgiving holiday (U.S.). This includes the interactive voice response system for payment.Keyholders will be able to eSYNC, get voice updates and log into KimWeb during this time. Thank you, Michelle MedleySupra Administrator

Posted by admin on November 21, 2007 at 4:07 pm under Supra.
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Revised Legal Article from CAR

Member Legal Services has published a revised legal article, <a title="http://www.car.org/index.php?id=MTUwNA==" href="http://www.car.org/index.php?id=MTUwNA==">Giving Notice to Employees About the Presence of Asbestos</a> (November 20, 2007). It is available on Legal's <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng== 
http://www.car.org/index.php?id=Ng==" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng==" target="_blank">What's New</a> and the <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz 
http://www.car.org/index.php?id=NTgz" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz" target="_blank">Legal Articles</a> pages on C.A.R. Online. Although the law has been revised only in a minor way, this legal article has been substantially revised. All the legal citations as well as links to useful websites on the issues of asbestos and Prop 65 have been added.

Posted by admin on November 21, 2007 at 8:33 am under Uncategorized.
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New Legal Articles Available from CAR

Member Legal Services has published a new legal article, <a title="http://www.car.org/index.php?id=MTcyOA==" href="http://www.car.org/index.php?id=MTcyOA==">Radon and the Radon Certification Program</a> (November 19, 2007). It is available on Legal's <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng== 
http://www.car.org/index.php?id=Ng==" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng==" target="_blank">What's New</a> and the <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz 
http://www.car.org/index.php?id=NTgz" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz" target="_blank">Legal Articles</a> pages on C.A.R. Online. This legal article discusses the issues involved with the environmental hazard, radon gas, such as what it is, how it enters a home, how to test the radon levels, how to monitor and reduce radon levels, and certification of persons who do radon testing and elimination. Member Legal Services has published a revised legal article, <a title="http://www.car.org/index.php?id=MTUyMg==" href="http://www.car.org/index.php?id=MTUyMg==">Notice of Default and Investor-Buyer Transactions: Home Equity Sales Contracts Law</a> (November 19, 2007). It is available on Legal's <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng== 
http://www.car.org/index.php?id=Ng==" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng==" target="_blank">What's New</a> and the <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz 
http://www.car.org/index.php?id=NTgz" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz" target="_blank">Legal Articles</a> pages on C.A.R. Online. The introduction of this legal article has been updated to emphasize all four necessary conditions that must be met before the Home Equity Sales Contracts Law applies:(1) the property being sold is residential one-to-four units;(2) the owner currently occupies the property;(3) a Notice of Default (NOD) has been recorded against the property; and(4) the buyer does not intend to occupy the property (i.e., buyer is an investor).Member Legal Services has published a revised legal article, <a title="http://www.car.org/index.php?id=MzcwNDI=" href="http://www.car.org/index.php?id=MzcwNDI=">Errors and Omissions (E&O) Insurance for REALTORS®</a> (November 15, 2007). It is available on Legal's <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng== 
http://www.car.org/index.php?id=Ng==" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=Ng==" target="_blank">What's New</a> and the <a title="/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz 
http://www.car.org/index.php?id=NTgz" href="http://blog.srcar.org/exchweb/bin/redir.asp?URL=http://www.car.org/index.php?id=NTgz" target="_blank">Legal Articles</a> pages on C.A.R. Online. This legal article has been updated to reflect the special features of the C.A.R.-endorsed E&O insurance policy: Through the C.A.R. program, a 50% reduction in the deductible that the broker/insured pays is offered if the broker used the RELAY™ Transaction Management program or a home warranty was issued by American Home Shield® on the transaction for which a claim was made.

Posted by admin on November 20, 2007 at 9:44 am under Uncategorized.
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Real Estate Connect NYC

What does the future of real estate look like? Which of today’s innovations will lead us into tomorrow? How can you leverage new technologies to attract new home sellers and buyers? Find out at Inman News’ Real Estate Connect NYC, taking place Jan. 9 – 11 at the Marriott Marquis in <place w:st="on"><city w:st="on">Times Square</city>, <state w:st="on">New York</state></place> City. If you hurry, there are two ways to save money: first by registering before rates go up on Nov. 23, and second by taking advantage of the special rate C.A.R. has negotiated on your behalf. <a title="http://www.realestateconnect.com/car" href="http://www.realestateconnect.com/car">Register now and save $150!</a>* The cost to C.A.R. members for the conference package is $579 and increases to $729 after Nov. 23. For the conference only (without one of the pre-conference workshops), the cost to C.A.R. members is $479 and increases to $629 after Nov. 23. Held every year since 1997, Real Estate Connect is where the top real estate agents and brokers, mortgage professionals, and technology executives convene to discuss the trends shaping the future of our industry. Join big-name speakers as they discuss real estate market conditions and forecasts, interactive marketing, Web 2.0, MLS, blogging, search engine marketing and optimization, online video, paperless technology, and much more. Featured speakers include: . Sherry Chris, president and CEO, Better Homes and Gardens Real Estate . Lloyd Frink, president, Zillow . Dottie Herman, president and CEO, Prudential Douglas Elliman . Pamela Liebman, president and CEO, The Corcoran Group . Craig Newmark, customer service rep and founder, craigslist.org . Dr. Michael Shermer, founding publisher, “Skeptic Magazine” and executive director, Skeptics Society . Steve Spinola, president, Real Estate Board of New York . Lockhart Steele, founder and publisher, Curbed.com . Thomas Evans, president and CEO, Bankrate Inc. . Michael Yang, general manager, Yahoo! Real Estate . Dozens more! <a title="http://www.realestateconnect.com/car" href="http://www.realestateconnect.com/car">Click here</a><a title="http://www.realestateconnect.com/car" href="http://www.realestateconnect.com/car"> </a> to see the complete speaker lineup and learn more about the event. Don’t miss out on your opportunity to be part of the industry’s most important gathering. <a title="http://www.realestateconnect.com/car" href="http://www.realestateconnect.com/car">Register by Nov. 23 and save $150!</a>* Visit <a title="http://www.realestateconnect.com/car" href="http://www.realestateconnect.com/car">www.RealEstateConnect.com/car</a> for complete schedules and event information. Sincerely, William E. Brown 2008 C.A.R. President

Posted by admin on November 20, 2007 at 8:13 am under Uncategorized.
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Thanksgiving Holiday Observance for SRCAR

The Southwest Riverside County Association of REALTORS office will be closed on Thursday, November 22 and Friday, November 23 in observance of the Thanksgiving Holiday. We ask that you please make a note of this and plan accordingly.On behalf of the SRCAR family, we wish each of you a Happy Thanksgiving with your friends and family. Be happy. Be safe. Enjoy.

Posted by admin on November 19, 2007 at 12:03 pm under Uncategorized.
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CAR Update

DESPITE PRICE DECLINES, HOUSING STILL SAFE LONG-TERM INVESTMENT Despite declining home prices as recently reflected in an S&P/Case-Shiller home price statistics survey, on average, the nation's top markets have experienced price appreciation by as much as 50 percent over the past five years, according to comparable data from the National Association of Home Builders (NAHB). "It's important to keep things in perspective," said NAHB President Brian Catalde. "The current housing price correction is most pronounced in the once super-heated markets in California, Nevada, Florida and Arizona. In most other markets, price declines have been pretty modest." According to the NAHB's comparable data tables, home prices in Los Angeles dipped 5.7 percent in the last year, but have appreciated by 88.9 percent since 2002. San Francisco home prices have declined 4.2 percent in the last year, but have seen appreciation of 46.7 percent since 2002. Home prices in San Diego have fallen by 8.3 percent in the last year, but have appreciated 54 percent since 2002, according to the report.CALIFORNIA CITIES AT TOP OF FORECLOSURE LISTThe cities of Riverside, Stockton, Sacramento, Bakersfield, and Oakland have some of the highest foreclosure rates in the country, according to RealtyTrac®'s Q3 2007 Metropolitan Foreclosure Market Report. Stockton leads the nation's 100 largest metro areas, with one foreclosure for every 31 households filed in the third quarter, while Riverside came in third, with one foreclosure for every 43 households, according to the report. "Although cities in just three states — California, Ohio and Florida — accounted for more than two-thirds of the top 25 metro foreclosure rates, increasing foreclosure activity was not limited to just a few hot spots," said James J. Saccacio, chief executive officer of RealtyTrac®, which markets foreclosed properties. "In fact, 77 out of the top 100 metro areas reported more foreclosure filings in the third quarter than they had in the previous quarter."CALHFA RECEIVES $100 MILLION FOR HOME BUYER PROGRAMThe California Housing Finance Agency (CalHFA) recently received an additional $100 million to help fund the California Home Buyer's Down Payment Assistance Program (CHDAP). The funds are made available through the passage of Prop. 1C, approved by California voters in 2006. To date, more than 18,000 California families have received CHDAP loans since Prop. C's passage. An additional $145 million in down payment assistance loans have also been made available since the passage of Prop. 46 in 2002, which also funds the CHDAP. That figure includes roughly $30 million in recycled funds and interest payments.NAR PROJECTS MODEST RECOVERY IN 2008The NATIONAL ASSOCIATION OF REALTORS® (NAR) is projecting modest recovery for existing-home sales next year in its 2008 forecast, released Tuesday at the association's annual REALTORS® Conference & Expo in Las Vegas. "The level of pent-up demand reaching the market next year is a bit uncertain, and it is possible for even higher home sales activity than we're forecasting if buyers regain their confidence about the long-term benefits of homeownership," said Lawrence Yun, NAR chief economist. NAR's pending home sales index based on signed contracts in September increased 0.2 percent from August, however, the index is down 20.4 percent from the same period a year ago.C.A.R. PUBLISHES NEW LEGAL ARTICLE AND CHARTC.A.R.'s Member Legal Services team has published a new legal article, "Residential Listing Agreements Between Seller and Real Estate Broker." This legal article compares the five listing contracts, C.A.R. standard forms RLA, RLAA, RLAN, SP, and CA, and provides guidance for REALTORS® on selecting an appropriate contract, depending on the circumstances. This form is available on Legal's What's New and Legal Articles pages on C.A.R. Online at <a title="http://www.car.org/" href="http://www.car.org/">www.car.org</a>. For more information, visit <a title="http://www.car.org/index.php?id=MTMwNA==" href="http://www.car.org/index.php?id=MTMwNA==">http://www.car.org/index.php?id=MTMwNA==</a>. Member Legal Services also has published a new legal chart, "Standard Forms and Legal Q&A Correlation Table" This legal chart contains a list of all the C.A.R. standard forms with a link to the applicable Legal Q&As to assist members in completing and understanding the forms. This new chart is available on Legal's What's New, Standard Forms, and Legal Articles pages on C.A.R. Online at <a title="http://www.car.org/" href="http://www.car.org/">www.car.org</a>. For more information visit <a title="http://www.car.org/index.php?id=Mzc5NzQ" href="http://www.car.org/index.php?id=Mzc5NzQ">http://www.car.org/index.php?id=Mzc5NzQ=</a>.<table cellspacing="0" cellpadding="0" width="514" border="0"><tbody><tr><td colspan="2">DISASTER RELIEF DONATIONS STILL NEEDED C.A.R. is asking members who haven't already done so to contribute to its Disaster Relief Fund in order to meet current and ongoing needs. While many of the thousands of residents who were evacuated during the recent Southern California wildfires have returned to their homes, others, including REALTORS®, their family members, and local association staff lost their homes or businesses, and are in need of recovery assistance. Please make your tax-deductible donation to the C.A.R. Disaster Relief Fund. Checks may be made payable to the California Community Foundation with "C.A.R. Disaster Relief Fund" on the "memo" line. Send checks to the California Community Foundation, 445 S. Figueroa St., #3400, Los Angeles, CA 90071-1638. To make a contribution online, visit <a title="http://www.calfund.org/8/giving_calrealtorsrelief.php" href="http://www.calfund.org/8/giving_calrealtorsrelief.php">http://www.calfund.org/8/giving_calrealtorsrelief.php</a>. For more information, visit <a title="http://www.car.org/index.php?id=Mzc5MjA" href="http://www.car.org/index.php?id=Mzc5MjA">http://www.car.org/index.php?id=Mzc5MjA=</a>. C.A.R. also has compiled a list of vital resources and other information for Southern Californians affected by the recent wildfires. A link to the Fire Disaster Information section can be found under the REALTORS® Care page on C.A.R. Online at <a title="http://www.car.org/index.php?id=MzIzMTU" href="http://www.car.org/index.php?id=MzIzMTU">http://www.car.org/index.php?id=MzIzMTU=</a>.</td><td width="40"><img src="http://mailer.carwebs.org/news/Images/Page/Space40px.gif" border="0" /></td></tr></tbody></table>

Posted by admin on November 19, 2007 at 8:30 am under Uncategorized.
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Report from the Recent NAR Meetings

<table class="MsoNormalTable" style="WIDTH: 380.25pt" cellpadding="0" width="507" border="0"><tbody><tr><td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 2.25pt; PADDING-TOP: 2.25pt">Special Report </td></tr><!– Itemheader –><tr><td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 2.25pt; PADDING-TOP: 2.25pt"> Credit Union Launch Tops NAR Board of Directors Actions </td></tr><!– Story –><tr style="HEIGHT: 14.25pt" height="19"><td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; WIDTH: 375pt; PADDING-TOP: 0.75pt; HEIGHT: 14.25pt" width="500" height="19">The Board of Directors of the NATIONAL ASSOCIATION OF REALTORS® at its meeting Nov. 16, 2007, in <city w:st="on"><place w:st="on">Las Vegas</place></city>, took actions to keep its members positioned for success into the future. REALTORS® Federal Credit Union Recognizing the disadvantages that real estate professionals face in credit markets because of their irregular, commission-based income, the board gave NAR the go-ahead to launch a REALTOR®-friendly credit union. The credit union, which will be Internet-based with U.S. call center operations, will use underwriting standards that recognize the irregular cash flow of real estate professionals and will handle loan applications and account transactions on a 24/7 basis. All earnings will flow back to credit union members in the form of beneficial interest rates and dividends. To get the process started, the board directed NAR staff to file a credit union charter application with the National Credit Union Administration and provided $10 million in start-up capital. It also authorized $5 million to be available on an as-needed basis to meet regulatory capital contingencies. Other Board Actions On the legislative front, the board positioned NAR on a number of issues coming to the fore in <state w:st="on"><place w:st="on">Washington</place></state>: 1) Declared support for a national affordable housing trust fund that doesn’t take away from other federal, state, and local housing programs or negatively impact real estate prices, transaction fees, or loan costs; 2) Supported FHA risk-based pricing with the caveat that the new flexibility not leave traditional FHA borrowers at a disadvantage for financing 3) Opposed changes to like-kind exchange tax rules that would make certain types of property ineligible (swapping improved real estate with unimproved agricultural real estate) 4) Opposed tax rule changes that would convert the carried interest in a real estate partnership of the general partner from a capital gains rate to an ordinary income rate 5) Supported voluntary (rather than mandatory) “visibility” requirements. Visibility refers to making homes accessible to visitors with mobility impairments 6) Supported adding wind damage to coverage under the National Flood Insurance Program, among other land use policy changes. Code of Ethics, Other Rule Changes Amended the NAR Code of Ethics to ensure the “true picture” test in Article 12 applies to electronic communications such as e-mail and text messages, and added a Standard of Practice to ensure that REALTORS® present a true picture in their URLs and domain names. The Code of Ethics changes required passage by the Delegate Body, which approved the measure at its meeting following the Board of Directors. Related changes to model MLS rules were also adopted. In MLS policy changes aimed at upping enforcement, the board authorized REALTOR® MLSs to impose financial penalties of up to $15,000—an increase from $5,000—for violations of MLS rules; authorized REALTOR® MLSs to remove any or all of a participant's listings in cases where the participant fails to report status changes on a timely basis; and adopted measures on the procedures for imposing discipline. Renamed the “Standards of Conduct for REALTOR® Associations” the “Professional Practices for REALTOR® Association Leadership” and directed NAR to increase awareness of the practices, which cover ethics and business practices among volunteers and staff leaders. Renamed the “NRDS Criteria for Points of Entry Minimum Standards” the “NRDS Standards and Policies,” and set rules regarding contact information to be included in core NRDS fields. The board also set rules for who can input new and additional member data into the data, and gave state and local NRDS staff four years to bring their databases into compliance with the national database. Additional board steps Approved $475,617 for five legal cases involving questionable infrastructure improvements required of subdivision developers, an ongoing Internet mapping patent infringement case, the validity of a listing agreement with an incomplete property legal description, an ongoing challenge against a municipality's real estate transaction ordinances, and the legality of excluding exclusive agency listings in MLS feeds to broker and other listing Web sites. The board referred back to the Nominating Committee for further consideration a proposed package of changes to the procedures for electing national officers. The proposed changes are expected to be considered for a vote at the Board of Directors meeting at the 2008 NAR Midyear Legislative Meetings in <state w:st="on"><place w:st="on">Washington</place></state>. Reports 2008 President Richard F. "Dick" Gaylord highlighted the need to reach out to younger practitioners in the industry and showcased NAR’s efforts to recognize younger members through the Young Professionals Network, a newly formed organization that grew out of REALTOR® Magazine’s annual “30 under 30” feature. The board heard an upbeat report on the financial health of the association, which has now reached 1.4 million members and has $300 million in total assets, $247 million in total equity, and $218 million in its investment portfolio. The association’s only debt, of $25.5 million, is for its <place w:st="on"><city w:st="on">Washington</city>, <state w:st="on">D.C.</state></place>, building. That debt is being paid down quickly, said NAR Treasurer Bruce Wolf. With 2008 national elections nearing, The REALTORS® Political Action Committee is well positioned with more than $7.2 million in contributions for 2007. The total includes $6.7 million from states—109 percent of the fair share goal—as well as $282,000 from the 160 members of the President’s Circle; $26,000 from NAR’s affiliated societies, institutes, and councils; and $20,000 from NAR staff, said RPAC Fundraising Chair Marbury Little. Errol Samuelson, president of REALTOR.com, reported to the board on innovations to the REALTOR®-owned site, which today hosts an average of 4.3 million listings a day and sees monthly traffic of about 5 million to 6 million consumers. The site boasts a new interface for the popular Apple iPhone digital device and has rolled out an enhanced Find a Neighborhood search feature that enables consumers to search by the kind of neighborhood they’re looking for, such as “family friendly” or “hip and cool.” The search results provide detailed information through maps, photos, and narrative descriptions posted by residents. Awards The board recognized the 2007 Distinguished Service Award winners, Henry Ray, CRB, CRS®, GRI, of <city w:st="on">Birmingham</city>, <state w:st="on">Ala.</state>, and George Peek, GRI, of <place w:st="on"><city w:st="on">Reno</city>, <state w:st="on">Nev.</state></place>, and the William R. Magel Award for outstanding REALTOR® association executive, Benny McMahan, GRI, of the Texas Association of REALTORS®. The 2007 Terry McDermott Community Leadership Award went to Carol Shapiro, Eastern Middlesex (<state w:st="on"><place w:st="on">Mass.</place></state>) Association of REALTORS®. Delegate Body Actions In addition to approving the change to Article 12 of the Code of Ethics, the NAR Delegate Body on Friday approved the following amendments to the NAR Constitution: Increase size of the Executive Committee to allow for two representatives from the Real Estate Services Advisory Board. Make the Member Mobilization chair a member of the NAR board of directors. Make the vice chair of the Finance Committee’s Subcommittee on Reserves Investment a member of the Finance Committee. </td></tr></tbody></table>

Posted by admin on November 19, 2007 at 8:26 am under Uncategorized.
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NEW LAWS FOR 2008 AFFECTING REALTORS®

With the conclusion of the first half of the 2007-08 legislative session, new laws have been enacted that may affect California's REALTORS®. The following is a summary of significant new laws that may impact real estate practitioners. NEW DISCLOSURE FOR PRIVATE TRANSFER FEES: Effective January 1, 2008, a seller who must provide a Transfer Disclosure Statement must also provide, at the same time, a disclosure statement of private transfer fees if applicable. A transfer fee is defined as any fee that must be paid upon transfer of real property as imposed by deed, CC&Rs, or other documents, with certain exceptions (such as, but not limited to, transfer fees imposed by probate, trust, court order, or a governmental agency, and those authorized by the Davis-Stirling Common Interest Development Act). The new disclosure statement must contain, among other things, a notice that payment is required, the amount of the fee, and the entity to which payment must be made. To comply with this new requirement, C.A.R. will release a new standard-form Notice of Transfer Fees (NTF) in November 2007. (Source: Assembly Bill 980.) RECORDING PRIVATE TRANSFER FEES: Also effective January 1, 2008, any person or entity imposing a private transfer fee must, as a condition of payment of the fee, record the instrument creating the transfer fee and a separate notice of "Payment of Transfer Fee Required." These two documents must be recorded concurrently in the county recorder's office for which a property is located. The notice of "Payment of Transfer Fee Required" must include the following information:<ul type="disc"><li class="MsoNormal">Names of the current property owners; </li><li class="MsoNormal">Assessor's parcel number and legal description; </li><li class="MsoNormal">Amount of the fee (or percentage of sales price); </li><li class="MsoNormal">Actual dollar-cost examples of the fee for residential property priced at $250,000, $500,000, and $750,000; </li><li class="MsoNormal">When the fee expires if applicable; </li><li class="MsoNormal">Purpose of the funds; </li><li class="MsoNormal">Name of entity to be paid and that entity's contact information for sending the funds; and </li><li class="MsoNormal">Signature of that entity's authorized representative. </li></ul>The title of the notice of "Payment of Transfer Fee Required" must be in at least 14-point bold type. For transfer fees imposed before January 1, 2008, the receiver of the fee must, as a condition of payment of any fee after December 31, 2008, record a notice of "Payment of Transfer Fee Required" by December 31, 2008 (or record a substantial equivalent as specified). (Source: Assembly Bill 980.) REAL ESTATE APPRAISERS: Starting October 5, 2007, a licensed appraiser's compensation cannot be dependent upon, or affected by, the value conclusion generated by an appraisal for a real property purchase, sale, transfer, financing, or development. Also starting October 5, 2007, anyone with an interest in a real estate transaction is prohibited from improperly influencing, or attempting to improperly influence, through coercion, extortion, or bribery, the appraisal process for a mortgage loan. An interested party may, however, ask the appraiser to do any of the following:<ul type="disc"><li class="MsoNormal">Consider additional, appropriate property information; </li><li class="MsoNormal">Provide substantiation or explanation for the appraiser's value conclusion; or </li><li class="MsoNormal">Correct errors in the appraisal report. </li></ul>(Source: Senate Bill 223.) ESCROW CANCELLATION AND POSTPONEMENT FEES: Beginning January 1, 2008, an escrow company licensed by the California Department of Corporations (DOC) may charge a fee for cancellation or postponement resulting from the acts or omissions of the parties to an escrow transaction. The fee must be in not less than 8-point bold type on the front page of the escrow instructions signed by the principals. A postponement fee can only be charged for a postponement of at least two months after the most recent closing date in the agreed-upon written instructions. This legislative bill also requires an escrow company licensed by the DOC, and any of its directors, stockholders, trustees, officers, agents, or employees, to comply with the federal Real Estate Settlement Procedures Act (RESPA). (Source: Assembly Bill 804.) MORTGAGE LENDERS AND BROKERS REGULATED: Commencing January 1, 2008, anyone who makes eight or more loans to the public in a calendar year using that person's own funds must be licensed as a real estate broker. This law applies to loans secured by one-to-four residential units, including condominiums, whether such loans are held or resold. Excluded from the law, however, are loans negotiated through a real estate broker who meets the criteria of Article 7 of the real estate law (Cal. Bus. & Prof. Code section 10232). This legislative bill also requires the Department of Real Estate (DRE) and other agencies to take steps to ensure that licensed mortgage lenders and brokers are aware of certain guidelines on subprime and other nontraditional mortgage product risks. (Source: Senate Bill 385.) ANTI-DISCRIMINATION OF TENANTS' IMMIGRATION STATUS: Beginning January 1, 2008, a landlord or landlord's agent cannot inquire into the immigration or citizenship status of an existing or prospective tenant or occupant. A landlord may, however, request information or documentation necessary to determine or verify the financial qualifications of a prospective tenant, or to identify a prospective tenant or occupant. This law also prohibits any city or county from requiring a landlord or landlord's agent of residential rental property to inquire into, or take any action based upon, the immigration or citizenship status of an existing or prospective tenant or occupant. (Source: Assembly Bill 976.) NOTICE OF AGENDA FOR HOA MEETING: Under existing provisions of the Common Interest Development Open Meeting Act, a homeowner's association (HOA) must not only allow members to attend HOA meetings as specified, but also provide members with at least 4 days notice of the time and place of a meeting. Effective January 1, 2008, such notice must contain the agenda for the upcoming meeting. At the meeting, the board of directors cannot discuss or take action on any item not on the agenda. Exceptions apply as specified for brief statements, exigent circumstances, and continuances from last month's meeting. This law does not prohibit a resident, who is not a member of the board, from speaking at a meeting about issues not on the agenda. (Source: Senate Bill 528.) CERTIFIED COMMON INTEREST DEVELOPMENT MANAGERS: Existing law regulating certified common interest development managers was originally scheduled to expire on January 1, 2008, but has now been extended until January 1, 2012. Under this law, holding oneself out as a "certified common interest development manager" (or using a similar term) is an unfair business practice unless that person has satisfied certain requirements. These requirements include 30-hours of coursework in common interest development management, and either passing an aptitude exam or being certified by a professional association for common interest development managers. This law also requires common interest development managers to disclose certain information to the board of directors on an annual basis, such as, but not limited to, whether the manager is certified, is bonded for the current year's operating and reserve funds, and has a real estate license. (Source: Assembly Bill 691.) MANUFACTURED HOMES AND MOBILEHOMES DISTINGUISHED: This new law provides a bright-line distinction between "manufactured homes" and "mobilehomes" to clarify the confusion surrounding these two terms. Starting January 1, 2008, both a manufactured home and mobilehome are generally defined as transportable structures of certain specifications, with or without foundations, but a manufactured home is constructed on or after June 15, 1976, whereas a mobilehome is constructed before June 15, 1976. (Source: Senate Bill 538.) NOTICE OF REMOVAL OF MOBILEHOME FROM PARK UPON SALE: Under existing law, when certain old or rundown mobilehomes are sold, the management of the mobilehome park may require the removal of such mobilehomes to upgrade the quality of the park. Beginning January 1, 2008, removal of such mobilehomes is prohibited, unless the park management provides the homeowner with a notice specifying the condition permitting removal. (Source: Assembly Bill 446.) LICENSE NUMBER ON BUSINESS CARDS: Not going into effect this year is Senate Bill 226 which would have, among other things, authorized the DRE to require that real estate agents display their license numbers on business cards and other consumer first-contact materials. Governor Arnold Schwarzenegger stated he supported this aspect of Senate Bill 226, but vetoed the legislative bill on other grounds.For more information on new laws for 2008, go to the Legal Section of C.A.R. Online at <a href="http://legal.car.org/">http://legal.car.org</a>. To view the full text of a legislative bill, go to <a href="http://www.leginfo.ca.gov/">www.leginfo.ca.gov</a>.

Posted by admin on November 8, 2007 at 7:32 am under Uncategorized.
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News from CAR

SHERMAN'S SUBPRIME BILL AMENDMENT PROTECTS REALTORS®The House Financial Services Committee approved legislation Tuesday addressing the subprime mortgage crisis, and now carries a crucial amendment from Rep. Brad Sherman aimed at protecting REALTORS® from certain guidelines proposed in the bill. The measure, H.R. 3915, sponsored by House Financial Services Chairman Barney Frank, calls for the establishment of minimum standards for home loans nationwide, and holds mortgage lenders more accountable for ensuring borrowers' ability to afford a loan. Among other things, the bill would require lenders to document all borrowers' ability to repay loans at offer and, if adjustable, once rates rise to market levels. Under the original terms of the bill, all REALTORS® would have been subject to these new standards, regardless of their role in the loan brokerage process. Sherman's amendment changes the definition of "loan originators" to exclude real estate brokers.MORTGAGE RATES HIT SIX-MONTH LOWThe 30-year fixed-rate mortgage averaged 6.26 percent for the week ending Nov. 1, its lowest point since May, compared with 6.33 percent a week earlier, and 6.31 for the same period a year ago. The five-year Treasury-indexed adjustable-rate mortgages averaged 5.98 percent for the week, down from the previous week from 6.03 percent, and 6.05 for the same period a year ago. "Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks," said Frank Nothaft, Freddie Mac vice president and chief economist.HUD CREATES AFFORDABLE HOUSING BLUEPRINTThe U.S. Dept. of Housing and Urban Development (HUD) and the Advisory Council on Historic Preservation (ACHP) have released a working roadmap of policies supporting the use of historic preservation as a tool for creating more affordable housing. During a symposium held this week, HUD and the ACHP, backed by a panel of national experts on affordable housing and historic preservation, unveiled a working set of policies the agencies say carry the potential to help pave the way for more affordable housing in urban neighborhoods. "Historic preservation and affordable housing are not two separate worlds," said HUD Deputy Secretary Roy A. Bernardi. "Historic preservation can be a powerful tool to fuel the preservation of affordable housing too."MORTGAGE APPLICATIONS UP 3.8 PERCENTMortgage loan activity for the week ending Oct. 31 was up 3.8 percent, according to the latest survey by The Mortgage Bankers Association. On an unadjusted basis, the index was up 19.5 percent compared with the same week one year earlier. The refinance index also increased 9.2 percent to 2249.0 from 2059.3 the previous week.MORE BANKS IMPOSE TIGHTER LENDING RULESAccording to the results of a recent survey conducted by The Federal Reserve, 41 percent of banks say they have tightened their lending practices, compared with 15 percent when last surveyed in July. The Fed's survey, which was conducted in early October, found that 41 percent of banks responding said they had tightened loan standards either "considerably" or "somewhat" for prime residential mortgages, or loans offered to borrowers with solid credit histories. In addition, 60 percent of the banks that offered nontraditional mortgages say they have tightened up lending standards, up from 40 percent in July.C.A.R. ROLLS OUT NEW STANDARD FORMS C.A.R will release new standard forms this week, the second of two regularly scheduled annual releases. The new forms are: Short Sale Addendum (SSA); Notice of Transfer Fee (NTF); California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA); Request for Repairs (RR); Seller Property Questionnaire (SPQ); and the Water Heater and Smoke Detector Statement of Compliance (WHSD). For more information on the November 2007 Forms Release, including other revisions, go to <a title="http://www.car.org/index.php?id=Mzc3NzU" href="http://www.car.org/index.php?id=Mzc3NzU">www.car.org/index.php?id=Mzc3NzU</a>. C.A.R.'s Member Legal Services division also has published a revised legal article, "Buyer-Broker Agreements: Q&A for Consumers." This legal article has been updated to reflect the form name changes from BBE, BBNE, BBNN to BRE, BRNE, BRNN, respectively. A few other non-substantive changes were also made. In addition, the password protection has been removed so that this article, which is intended for consumers, can be easily accessed by our members' clients. This article is available on Legal's What's New and the Legal Pages on C.A.R. Online at <a title="http://www.car.org/index.php?id=MTI5NQ==" href="http://www.car.org/index.php?id=MTI5NQ==">www.car.org/index.php?id=MTI5NQ==</a>.

Posted by admin on November 8, 2007 at 7:28 am under Uncategorized.
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C.A.R. DONATES $250,000 TO WILDFIRE VICTIMS

C.A.R. has donated $250,000 to the Association's Disaster Relief Fund to help support the victims of the recent Southern California wildfires, which preliminary estimates show destroyed more than 1,700 homes and structures. "We are profoundly saddened by the devastation caused by the recent wildfires, particularly, the loss of homes and businesses that belonged to some of our REALTOR® members, local associations, staff, and their families," said C.A.R. President Colleen Badagliacco. "It is an honor to be a part of an organization that has stepped up to the plate to offer this much-needed donation. C.A.R. also would like to extend our gratitude to those individuals and local associations that have contributed so generously to the C.A.R. Disaster Relief Fund. Your support is greatly appreciated." As of Nov. 2, C.A.R. received a total of $521,799 in donations to the fund from various REALTOR® associations and individuals, including $500,000 from the NATIONAL ASSOCIATION OF REALTORS®, and $25,000 from the Florida Association of REALTORS®. C.A.R. has received commitments from the Santa Clara County Association of REALTORS® for $10,000, and the Alabama Association of REALTORS® for $15,000. C.A.R. also is asking members who haven't already done so, to contribute to its Disaster Relief Fund in order to meet current and ongoing needs. Please make your tax-deductible donation to the C.A.R. Disaster Relief Fund. Checks may be made payable to the California Community Foundation with "C.A.R. Disaster Relief Fund" on the "memo" line. Send checks to the California Community Foundation, 445 S. Figueroa St., #3400, Los Angeles, CA 90071-1638. To make a contribution online, visit <a title="http://www.calfund.org/8/giving_calrealtorsrelief.php" href="http://www.calfund.org/8/giving_calrealtorsrelief.php">http://www.calfund.org/8/giving_calrealtorsrelief.php</a>. For more information, visit <a title="http://www.car.org/index.php?id=Mzc5MjA=" href="http://www.car.org/index.php?id=Mzc5MjA=">http://www.car.org/index.php?id=Mzc5MjA=</a> . C.A.R. also has compiled a list of vital resources and other information for Southern Californians affected by the recent wildfires. A link to the Fire Disaster Information section can be found under the REALTORS® Care page on C.A.R. Online at <a title="http://www.car.org/index.php?id=MzIzMTU" href="http://www.car.org/index.php?id=MzIzMTU">http://www.car.org/index.php?id=MzIzMTU=</a>.

Posted by admin on November 8, 2007 at 7:27 am under Uncategorized.
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