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California Model MLS Rules, Issues Briefing Papers, and other articles and materials related to MLS policy.


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Summaries and photos of California REALTORS® who violated the Code of Ethics and were disciplined with a fine, letter of reprimand, suspension, or expulsion.


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An explanation of C.A.R.'s position on MLS consolidations in general and a statewide MLS in particular.


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The California Professional Standards Reference Manual, Local Association Forms, Interboard Arbitration Rules, and other materials related to Code of Ethics enforcement and arbitration.


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Following modest gains in home sales in 2016, California’s housing market will post a nominal increase in 2017.


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Member Legal Services
Tel  (213) 739-8282
Fax  (213) 480-7724
Oct. 17, 2013 (revised)

C.A.R. proactively defends your real estate profession in the appellate courts.  C.A.R.'s Legal Action Fund contributed to favorable decisions in many landmark cases in which C.A.R. had filed amicus curiae (friend of the court) briefs.  For questions about the Legal Action Fund, please contact, Neil Kalin , Assistant General Counsel.

CASE NAME

CASE SUMMARY

Peake v. Underwood

California Court of Appeal, Fourth Appellate District, Division 1

(2012)

Issue: Whether a real estate broker is entitled to an award of sanctions against a buyer and her attorney for maintaining a frivolous lawsuit.

C.A.R. position: Yes

Case Status: Anticipate Writ to be filed before October 2, 2013.  C.A.R. Brief filed May 16, 2013. 

De Santis v. Ruppert

California Court of Appeal, First Appellate District

(2011)

Issue: Whether a seller of commercial property has a duty to disclose to a buyer speculative information that is readily available to the buyer upon the buyer’s own investigation.

C.A.R. position: A buyer of commercial property is responsible for conducting its own investigation. A seller does not have to disclose potential conclusions that can be drawn from facts discoverable by the buyer.

Case Status: Oral argument held September 2012. Awaiting court decision.

Meher Mount Corporation v. Hagman Trust

California Court of Appeal, Second Appellate District, Division 6 

(2012)

Issue: Whether a person claiming another’s property by adverse possession needs to pay property tax on the acquired property if the owner of that property is a non-profit exempt from taxation.

C.A.R. position: Yes. Payment of property tax for purpose of adverse possession should not depend on the tax status of the underlying property owner.

Case Status: Published Opinion filed April 3, 2013.

Nguyen v. Lee

California Court of Appeal

(2012)

Issue: Whether a broker is liable to a buyer if escrow funds seized by government agency.

C.A.R. position: Broker not liable if broker did not know of seizure or have any reason to suspect it.

Case Status: Unpublished court decision in September 2012 holding broker not liable to buyer for funds seized by government agency.

Sandler v. Sanchez

California Court of Appeal, Second Appellate District, Division 7

 

(2012)

Issue: Whether a designated officer of a corporate real estate broker is personally liable for misconduct of a salesperson working for the corporation.

C.A.R. position: The designated officer may be disciplined for lack of supervision but only the corporation has vicarious liability for acts of the salesperson. 

Case Status: Published opinion holding that designated broker is not personally liable for acts of salesperson.

Lyon v. Superior Court (Henley)

California Court of Appeal, Third Appellate District

(2011)

Issue: Whether a clause in a buyer representation agreement that limited the time to bring a legal claim against a broker is extended or tolled during the time the parties mediate.

C.A.R. position: The contractual limitation period is reasonable and enforceable as written.

Case Status: P ublished court decision April 2012 holding that contractual limitation clause is not enforceable by broker against that broker's buyer for claims arising out of the fiduciary relationship.


Copyright© 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members to reprint this material in hardcopy or PDF format only for personal use or with individual clients. This material may not be used or reproduced for commercial purposes. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R Legal Department. All rights reserved.
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