Real Estate Law, Other Legal Resources and Legal Archives
Below you will find summaries of new statutes, important real estate cases including cases in which C.A.R. has actively participated, important older laws and regulations.
2012 New Laws Affecting REALTORS®
2011 New Federal and State Statutes
2010 New Federal and State Statutes
2009 New Federal and State Statutes and 2008 Voter-Passed Initiatives
2008 New Laws Passed By the California Legislature Affecting REALTORS®
2007 New Laws Passed By the California Legislature Affecting REALTORS®
2006 New Laws Passed By the California/Federal Legislature Affecting REALTORS®
2005 New Laws Passed By the California Legislature/Electorate Affecting Real Estate
2004 New Laws Passed By the California Legislature Affecting Real Estate
WHAT'S HOT and NEWS ARTICLES
2011 News Announcements (Legal's What's New page regulatory news from 2011)
2010 News Announcements (Legal's What's New page regulatory news from 2010)
2009 News Announcements (Legal's What's New page regulatory news from 2009)
2008 News Announcements (Legal's What's New page regulatory news from 2008)
IMPORTANT REAL ESTATE CASES
LAWS IMPACTING THE REAL ESTATE INDUSTRY
Asset Forfeiture
Bankruptcy
Bankruptcy Basics for REALTOR® Associations* (NAR password required Sep. 2009)
Cold Calling (Telephone, E-mail, Fax)
Do-Not-Call Registrations Will Not Expire and Will Last Indefinitely* (June 18, 2008)
NAR Field Guide to DO-NOT-CALL, DO-NOT-FAX, DO-NOT-EMAIL Laws*
Confused about the fax advertising rules? See the FCC Fax Advertising Policy Summary.*NAR National Do-Not-Call Registry Update*
National Do-Not-Call Registry Access* (to register a phone number, to file a complaint, for additional information from the FTC)
Rules and Regulations Implementing the Junk Fax Prevention Act of 2005* (* FCC regulations, which went into effect Aug. 1, 2006, do the following: (1) codify an established business relationship (EBR) exemption to the prohibition on sending unsolicited facsimile advertisements; (2) provide a definition of an EBR to be used in the context of unsolicited facsimile advertisements; (3) require the sender of a facsimile advertisement to provide specified notice and contact information on the facsimile that allows recipients to "opt-out" of any future facsimile transmissions from the sender; and (4) specify the circumstances under which a request to "opt-out" complies with the Act.)
Common Interest Developments and Homeowners Associations (HOAs)
HOAs: DRE Reserve Study Guidelines for HOA Budgets*
(Sep. 2, 2010)
California Corporations Code--a select list of governing statutes:
Election of Directors* (Corporations Code Sections 7520-7527)
California Nonprofit Corporation Duties and Responsibilities* (Corporations Code Sections 7210-7215)
Meetings and Voting Requirements* (Corporations Code Sections7510-7517)
Member Rights of Inspection of Records and Reports (Corporations Code Sections 8310-8313)
Member Rights of Inspection of Records and Reports (Corporations Code Sections 8330-8338)
Selection, Removal and Resignation of Directors* (Corporations Code Sections 7220-7225
Standards of Conduct for Directors* (Corporations Code Sections 7230-7238)
Voting by Members* (Corporations Code Sections 7610-7616)
Digital Signature Law and Regulations
Digital Signature Law FAQS and Regs
Digital Signature Law (AB 1577)
Federal Electronic Signatures in Global & National Commerce Act
Disclosures
Agency Disclosure and Broker's Duty of Visual Inspection (Civil Code Sections 2079 - 2079.24*)
Chinese Drywall Problem - HUD and CPSC issue guidance on identifying problem drywall in homes (Jan. 28, 2010); Fannie Mae problem drywall update (Dec. 2, 2010)
Domestic Violence Shelter Does Not Constitute a Nuisance
Furnaces: CPSC Warns About Defective Furnaces in California - See the Real Estate Regulatory Updates page for additional CPSC Alerts
Discrimination (Federal)
American with Disabilities Act(ADA): American with Disbilities Act of 1990*, Titles I and V (text of law)
HUD Information: "People With Disabilities"*
EEOC Guidelines: Definition of Disabilities*
EEOC Fact Sheet: Small Employers and Reasonable Accommodation*Fair Housing Laws and Presidential Executive Orders*
HUD Distributes Illegal Discrimination Booklet*
HUD "Fair Lending" Under the Fair Housing Act*
HUD Fair Housing Hubs: Location of Offices*Occupancy Standards
Senior Housing:
Employment Law
Independent Contractor v. Employee
Employee vs. Independent Contractor - Seven Tips for Business Owners
Summertime IRS Tax Tip 2010-20, Aug. 20, 2010
Brokers To File Reports on Independent Contractors with EDD
(See also the Legal Q&A, Independent Contractor Reporting to the California EDD)
Independent Contractor Reporting FAQS (EDD)*
Independent Contractor v. Employee (IRS)*
2009 Ten Tax Tips from IRS on Independent Contractors
Independent Contractor Tax Forms (IRS)*Workers' Compensation Issues:
California Labor and Workforce Development Agency Letter to Real Estate Broker
(April 19, 2004 - Letter indicates real estate salespersons will be treated as employees for purposes of workers' compensation laws)DIR Warns Real Estate Licensees Regarding Workers' Compensation Coverage*
(June 9, 2004)Workplace Illness and Injury Prevention Program:
Cal/OSHA Guide to Developing an Injury & Illness Prevention Program* NEW
Workplace Sign Posting Requirements:
California Employer Workplace Sign Posting Obligations*
(Dept. of Industrial Relations Summary)
U.S. Department of Labor Workplace Sign Posting Advisor* (interactive - assists offices in compliance with various sign posting laws) NEW
Environmental Issues
UNDERGROUND STORAGE TANKS: California State Water Resources Control Board information and United States Environmental Protection Agency (US EPA) information
MOLD: NAR Mold Report and NAR Oct. 22, 2002 Article "Frequently Asked Questions About Mold" *(NAR Password Required)
What are the costs of environmental compliance?*
California Indoor Air Quality Program* (includes information regarding air quality specialists)
"Radon Gas and Mold Agreement" is required for sales of HUD-acquired single family homes*
Escrow
Return of Escrow Deposits (When No Signed Instructions Given to Escrow) - DOC Memo Oct. 21, 1997
Fire Disaster Assistance
SBA Offers Fire Disaster Assistance to Individuals and Small Business Owners,
Oct. 29, 2008
The Helping Handbook: For Individuals and Small Businesses Affected by the 2007 Southern California Wildfires* "The Helping Handbook: For Individuals and Small Businesses Affected by the 2007 Southern California Wildfires" discusses the legal issues that individuals and small businesses may need to consider if affected by the recent wildfires. The handbook is produced by Morrison & Foerster, LLP and co-sponsored and distributed by the Los Angeles County Bar Association
Assistance for SoCal Fire Victims* The Department of Consumer Affairs, in partnership with the Governor's Office and the State and Consumer Services Agency, has developed a Consumer Protection Hotline for the people that have been impacted by the Southern California Wild Fires. The victims of this tragic event can call 1 (800) 952-5210 or go to www.rebuildyourlife.ca.gov for consumer protection information.
IRS Grants Tax Relief for Southern California Wildfire Victims* IRS NewswireThe California Department of Insurance offers advice and assistance at http://www.insurance.ca.gov/ and via a consumer hotline at (800) 927-HELP.
Foreclosure Assistance for Consumers
DRE Foreclosure Guide 2010
DRE Brochure on the Foreclosure Process and AlternativesRed Flags for Foreclosure Scams
REALTORS® use this informative document created by C.A.R.--just fill in your own office name and share with your clients.Federal Reserve Board:
http://www.federalreserve.gov/pubs/foreclosure/default.htm* (March 19, 2009)
(provides information and links to agencies and organizations that may be able to help consumers)http://www.federalreserve.gov/consumerinfo/files/foreclosurescamtips.pdf* (March 5, 2009)
(5 tips for avoiding foreclosure scams)Consumer Action:
www.housing-information.org/articles/saving_your_home_from_foreclosure*
(Offers information about late mortgage payments and alternatives to foreclosure)U.S. Department of Housing and Urban Development (HUD):
www.hud.gov/foreclosure/*
(HUD guide to help avoid and deal with a foreclosure)
Green Building Ordinances
Numerous local governments in California have implemented green building ordinances. Click here
2008 California Green Building Standards Code (Cal. Code Regulations, Title 24, Part 11--2009 current code)*
Homebuyer Programs in California
CalFHA and HCD Homebuyer Assistance Programs (Aug. 18, 2009)
Identity Theft Assistance for Consumers
If you are a victim of identity theft, HUD provides Four Steps to Follow*
Identity Theft and Identity Fraud* (Advice from the USDOJ)
'Spoofing' and 'Phishing' and Stealing Identities*(usgovinfo.about.com article)
Internet Issues
Electronic Transactions (SB 820)
Ethics and the Internet (Fact Patterns)
CAN-SPAM ACT: The federal law regulating e-mails is available online, Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003*
FTC Announces First CAN-SPAM Cases* (April 29, 2004)
FTC Issues CAN-SPAM Rule * (NAR summary)
CAN-SPAM Final Rule* (March 28, 2005)Federal Electronic Signature Act
Use of the REALTOR® Mark on the Internet* (NAR password required)
Landlord/Tenant Issues
Protecting Tenants at Foreclosure Act of 2009 (All "bonafied" tenants must get a 90-day notice prior to eviction due to foreclosure. In addition (with some exceptions) tenants that have leases can continue to live in their homes until the end of the term of their lease.) (June, 10, 2009)
Residential Landlord/Tenant Law (Statutes): Civil Code Sections 1940-1954.1 (links to all Calif. Codes--Enter the code and sections indicated to find the real estate broker licensing law)*
The Fair Debt Collection Practices Act (FDCPA/Federal)*
FTC Opinion Letter (Nov. 6, 1995): FDCPA and applicability to property managers*
FTC Staff Commentary on the FDCPA*
Fair Debt Collection Practices Act Links*
Property Manager's Collection of Overdue Rent Is Exempt From Requirements of the Federal Fair Debt Collection Practices Act* (U.S. District Court case Franceschi v. Mautner-Glick Corp. analyzed by NAR - NAR password required)
RENT CONTROL - Contains California Statutes and Important California Cases on Rent Control, List of Rent-Controlled Cities and Counties, Plus Links to Cities' Rent Control Web sites
Lender Problems
A Consumer Guide to Mortgage-Related Complaints*
Reporting Lender Problems (where to complain about lenders' non-compliance with the federal Making Home Affordable Program Guidelines) (June 16, 2009)
Federal Reserve Board's Consumer Help With Lender Problems*Free Annual Credit Reports for Consumers
For Online Viewing*
https://www.annualcreditreport.com/cra/index.jspBy Phone
Call toll-free: (877) 322-8228By Mail
ANNUAL CREDIT REPORT REQUEST SERVICE
P.O. Box 105281
Atlanta, GA 30348-5281
Licensing
Real Estate Law (Business and Professions Code Sections 10000-112000) (links to all Calif. Codes--Enter the code and sections indicated to find the real estate broker licensing law)*
California Real Estate and Financial Services License Information* - The Department of Corporations, the Department of Real Estate, the Office of Real Estate Appraisers, and the Department of Financial Institutions regulate most of the real estate financial services in California. To check the license records of all four departments at once, click here.
Loan Information for Consumers
Sources of Home Loans*
Shopping for Your Home Loan: HUD's Settlement Cost Booklet*
FHA Loan Limits:
2011 FHA Mortgage Limits by County (enter the year and the county)
California County by County 2010 FHA Loan Limits is available here
For more information on FHA Loan Limits, see HUD's Mortgage Letter 2009-50 dated Nov. 25, 2009, available here.Fannie Mae and Freddie Mac Loan Limits:
2011 Freddie Mac Conforming Loan Limits* and Freddie Mac Max Loan Limits by Counties*
2011 Fannie Mae Conforming Loan Limits* and Fannie Mae Max Loan Limits by Counties*
California County by County 2010 Fannie Mae and Freddie Mac Loan Limits is available hereDepartment of Veterans Affairs (VA) Limits:
2011 Department of Verterans Affairs' (VA) Loan Limits for Calculating Maximum Guaranty Amounts is available here
California County by County 2010 Department of Veterans Affairs' (VA) Loan Limits for Calculating Maximum Guaranty Amounts is available here
Loan Modification Services
DRE Loan Modification Self-Help Guide (#RE 21)
C.A.R. Summary of Loan Modifications: Mortgage Workout Programs for Homeowners
(March 24, 2009)FDIC Tips on "How to Protect Against Foreclosure Frauds," "Easy Money Schemes" and other costly deals in the Spring 2009 FDIC Consumer Newsletter*. Other Topics include the extension of $250,000 deposit insurance and more about mortgage modification programs.
Do you qualify for a loan modification or refinance? FICO's new Web site helps consumers see if they qualify for a loan modification or refinance for free. Go to www.mortgagereliefonline.com. (April 17, 2009)
Are you eligible for refinancing your home? Click here for a government self-assessment tool to determine if you're eligible for the Making Home Affordable program.* (3/19/09) Making Home Affordable FAQS*
A Consumer's Guide to Mortgage Refinancings* (Aug. 27, 2008 - Federal Reserve Board)
Go to the Legal Scam Watch page for the latest news about mortgage fraud.
Mortgage Fraud: Recognizing the Signs* (Feb. 11, 2008 - * NAR Word and PDF documents to help REALTORS® avoid the pitfalls of involvement in a mortgage fraud scheme - NAR password required)
DRE Fraud Alert on Loan Modifications
Money Laundering: Information from the DEA, go to http://www.justice.gov/dea/programs/money.htm; for information about the U.S. Patriot Act, go to http://www.fincen.gov/statutes_regs/patriot/index.html.
National Mortgage Settlement
Federal Government & Attorneys General reach landmark settlement with major banks
Privacy of Consumer Information (Federal Law)
Red Flag Regulations Require Financial Institutions and Creditors to Have Identity Theft Prevention Programs*
Safeguarding Customers' Personal Information: A Requirement for Financial Institutions*
How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act*
Financial Institutions and Customer Data: Complying with the Safeguards Rule*
In Brief: The Financial Privacy Requirements of the Gramm-Leach-Bliley Act*
Additional Frequently Asked Questions About the Privacy Regulation and Mortgage Brokers *
16 C.F.R. Part 314 (Standards for Insuring the Security, Confidentiality, Integrity and Protection of Customer Records and Information: Text of Final Rule)*
SB 1386 (Disclosure of breach in security by any business maintaining computerized data that includes personal information)
Property Management
Property Manager Alert: FTB Delays Non-Resident Tax Withholidng Requirement (March 12, 2009)
Referral Fees and RESPA
RESPA - Real Estate Settlement Procedures Act* (HUD Summary)
HUD Policy Statement on Sham Controlled Business Arrangements*
HUD Policy on Rental Office Spaces, Lock-outs, and Retaliation Regulations*
HUD Policy on "Yield Spread Premium" Mortgage Broker Fees
HUD Policy on Transaction Fees* (July 18, 2002)
HUD Announces Settlements in RESPA Kickback Scheme* (March 21, 2005)
California Referral Fee Statutes
Selected Department of Insurance Opinion Letters on Title Insurers and RESPA Issues
Attorney General Opinions:
97-901 (June 1, 1998) DRE Enforcement of RESPA
94-909 (March 16, 1995) Unlicensed Person Referral to Mortgage Broker
Referral Fees (Legal Q&A)
Referral Fee Chart (Legal Q&A)
Swimming Pool & Spa Safety Laws
Federal: Virginia Graeme Baker Pool & Spa Safety Law (anti-entrapment drain devices). Click here for summary and link to the law.
State: The Swimming Pool Safety Act (Cal. Health & Safety Code Sections 115920-115929; Sections 115928, 115928.5 cover anti-entrapment drain devices)
Local: Be sure to check local ordinances for any additional requirements. Many cities have local ordinances online or contact the local department of building and safety. For the links to some city ordinances, click here.
Tax
Common Business Expenses: FTB brochure for the business owner*
Commissions and the 1099 Form: FTB assists real estate brokers in completing and filing the FTB/IRS form 1099-MISC with the FTB and IRS.
Compensation to Cooperating Brokers: 1099 Reporting for Real Estate Brokers* (*FTB Publication - Since real estate brokers must generally file 1099-MISC forms for commission payments of $600 or more paid to cooperating brokers, the listing broker must obtain the TIN of the selling broker(office). IRS Form W-9 may be used to request the taxpayer identification number. For a copy of the W-9 form go to http://www.irs.gov/pub/irs-pdf/fw9.pdf)
Health Care Tax Credit: IRS helps small employers claim new health care tax credit
(Dec. 7, 2010)Mortgage Debt Forgiveness* (IRS Tax Tips 2010-44, March 4, 2010)
Property Management: Tax Alert for Property Managers: IRS Treasury regulation requires property managers to give property owners and repairmen IRS Tax Form 1099-MISC for money given to them in excess of $600* (Jan. 31, 2008 - *Government GPO Access: Enter Title 26, Part 1, Section 6041-1 and then scroll down to Example 5)
Property Management: Nonresident Withholding Requirements for Property Managers is Being Enforced by FTB (Oct. 5, 2009)
Rental of Property: IRS Revenue Procedure 2008-16* provides a safe harbor under which the Internal Revenue Service will not challenge whether a property that is rented to others but also occasionally used by the owners for personal purposes qualifies as property that may be exchanged in a like-kind exchange under § 1031.
Sale of Residence: Real Estate Tax Tips*
The American Jobs Creation Act*, effective Oct. 22, 2004, is the most significant overhaul of corporate and international taxation since the Tax Reform Act of 1986. The legislation contains several provisions that are favorable to real estate investors and REALTORS®. (NAR Summary)
Link to Franchise Tax Board*
Link to Internal Revenue Service*
Timeshares
DRE Timeshare FAQs* (Aug. 26, 2009)
Title Issues
Tenancy in Common (TIC) Guidelines (DRE document)*
Trust Funds
Trust Funds, A Guide for Real Estate Brokers and Salespersons (DRE brochure contains detailed information)*
For any questions regarding this Web page, please contact the Legal Editor, Neil D. Kalin, Esq. Please be sure to include your full name, office, and your member number in your e-mail.
*DISCLAIMER: The California Association of REALTORS® uses links to other Web sites in an effort to assist users in locating information on topics that might be of interest to them. The links to these Web sites are provided as a courtesy to our members. These links are NOT maintained by C.A.R. and C.A.R. cannot be responsible for their information content or their maintenance. Furthermore, linking to a Web site does not constitute an endorsement by C.A.R. or any of its employees of the sponsors of the Web site or the products presented on the Web site.
