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2012 Fall Summary of Action Items

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CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
535th SESSION
OCTOBER 5 - 6, 2012

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Fall 2012 meeting.  Some additional information items are included, but do not necessarily represent Association policy.  A complete set of minutes is available for review upon request.

California Distinguished REALTOR® Award Selection
1. To approve the selection of Carylon Dopp, West Contra Costa, as the recipient of the 2012 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.

California REALTOR® Expo Advisory
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2012 was a tremendous success.  Attendance for PRE EXPO was 500.  The Exhibit Hall included 230 exhibit booths, and there were 17 generous sponsoring companies.  Overall attendance was 7,500. 

C.A.R. Scholarship Foundation/C.A.R. Education Foundation
1. It was reported for information only that the C.A.R. Scholarship Foundation awarded scholarships totaling $9,500, and the C.A.R. Education Foundation awarded grants of $9,742.50.

CREPAC Trustees
1. That the following Nominees for CREPAC Trustees & Alternates be elected.

NOMINEES FOR CREPAC TRUSTEE
(November 2012- November 2014)
Cheryl McFall, Region 7
Debbie Rodgers, Region 11
Linda Jay, AE, Region 12
Carol Facciponti, Region 16
Mary Funk, Region 28

NOMINEES FOR CREPAC ALTERNATE
(November 2012 - November 2013)
Eva S. Garcia, Region 3
Terriann McGowan, Region 4
Don Scordino, Region 12
Daniel Lanning, AE, Region 13
Thomas Berge, Region 16
Sandi Pfister, Region 21
Geoffrey Craighead, Region 25
Robert Pahlke, Region 29

2. It was reported for information only that CREPAC contributed $1,165,250, in a bi-partisan manner to candidates for State Assembly and State Senate for the 2012 General Election cycle. 
3. It was reported for information only that CREPAC contributed $1,350,000 to the Democratic and Republican Parties and $140,000 to non-partisan groups for the 2012 Election Cycle.
4. It was reported for information only that CREIEC (California Real Estate Independent Expenditure Committee) contributed $3,202,862 for the 2012 Election cycle.
5. It was reported for information only that the CREPAC Trustees made recommendations to RPAC that resulted in funding $464,000 to members of the California Congressional delegation for the 2012 Election Cycle.

Executive
1. That the C.A.R. Bylaws amendments be approved as noticed.

IMPAC Trustees
1. That the following Nominees for IMPAC Trustee and Alternate be elected.

NOMINEES FOR IMPAC TRUSTEE
(November 2012- November 2014)
Cynthia Wood, Region 4
Leannah Hunt, Region 9
John Nisbet, Region 11
Les Fishman, Region 21
Nancy Hunt, Region 32

NOMINEES FOR IMPAC ALTERNATE
(November 2012 - November 2013)
Kim Tucker, Region 3
Jeannette Way, Region 4
Anita Thede, Region 6
Lisa Muetterties, Region 7
Robert Kronovet, Region 17
Stephen Hanleigh, Region 19
Jolaine Merrill, Region 21
Larry Black, Region 23
Michael Mercurio, Region 24

2. It was reported for information only that the IMPAC Trustees approved the following funding requests:
--$51,000 to the CEQA Working Group to engage in support of comprehensive CEQA reform.
--$10,000 to California Natural Resources Group to continue its action plan to challenge onerous “wetlands” and endangered species regulations.
--$40,000 to the Inland Valley Association of REALTORS® to help defeat efforts by San Bernardino County to acquire performing, underwater mortgages by eminent domain.
--$25,000 immediately and up to an additional $25,000 as needed to the Sutter-Yuba Association of REALTORS® to help defeat a ballot box planning measure on the November ballot.
--$20,000 to the Greater San Diego Association of REALTORS® to help defeat a property tax increase measure on the November ballot.

Legal Action Fund Trustees
1.  It was reported for information only that since May, 11 cases have been reviewed by the Legal Action Fund Trustees. The Trustees approved filing amicus briefs in 2 cases. The Trustees have reviewed 26 cases this year and approved amicus briefs in 13 cases this year.

JHP LLC v JAPP (Timber harvesting case)
The Trustees authorized joining the Pacific Legal Foundation’s brief on the issue of whether CalFire has jurisdiction and can require a Timber Harvesting Policy for any land that currently supports or has at one time supported commercially logged trees, regardless of whether or not such land is currently zoned for commercial logging.

Prahm v. Pickford Realty (procuring cause case)
A brief will be filed supporting the concept that the C.A.R. procuring cause factors should be used in determining commission entitlement of cooperating brokers.

Three cases have been decided since the last meeting:

Lyon v. Superior Court (statute of limitations on buyer’s claims against a broker)
The court held that notwithstanding the buyer broker agreement, the rule relating to fiduciary duties allowed for the statute of limitations to begin at the date of discovery, not at the close of escrow.

Nguyen v. Lee (Disclosure of Bulk Sale and seizure of escrow)
The broker prevailed in this case reversing the ruling that the broker had to reimburse the buyer for the full cash price of the house that had been in escrow but the appellate case is unpublished. 

Sandler v. Sanchez
In a published decision, the Court of Appeal determined that a designated officer of a corporate real estate broker is not personally liable for misconduct of a salesperson working for the corporation.

Legislative
1. That C.A.R. adopt the following positions on upcoming state ballot measures.
Proposition 30. Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Proposition 31. State Budget. State and Local Government. Initiative Constitutional Amendment and Statute. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”
Proposition 34. Death Penalty Repeal. Initiative Constitutional Amendment. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”
Proposition 35. Human Trafficking. Penalties. Initiative Statute. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”
Proposition 36. Three Strikes Law. Repeat Felony Offenders. Penalties. Initiative Statute. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”
Proposition 37. Genetically Engineered Foods. Labeling. Initiative Statute. for the November 2012 state ballot. "NOT REAL ESTATE RELATED"
Proposition 38.Tax to Fund Education and Early Childhood Programs. Initiative Statute. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”
Proposition 39. Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statute. for the November 2012 state ballot. “NOT REAL ESTATE RELATED”

Proposition (Number Pending). Approval of Healthcare Insurance Rate Changes. Initiative Statute. for the November 2014 state ballot. “NOT REAL ESTATE RELATED”

Note: C.A.R. has previously taken the following positions on upcoming state ballot propositions:
Proposition 32 for the November 2012 state ballot entitled Prohibits Political Contributions by Payroll Deduction. Prohibitions on Contributions to Candidates. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Proposition 33 for the November 2012 state ballot entitled Changes Law to Allow Auto Insurance Companies to Set Prices Based on Driver’s History of Insurance Coverage. Initiative Constitutional Amendment. "NOT REAL ESTATE RELATED"
Proposition 40 for the November 2012 state ballot entitled Redistricting. Senate Districts. Referendum. "NOT REAL ESTATE RELATED"
An as yet unnumbered Proposition for the November 2014 state ballot entitled Safe, Clean, and Reliable Drinking Water Supply Act of 2012. Bond Measure. “NEUTRAL”
An as yet unnumbered Proposition for the November 2014 state ballot entitled State Budget. Changes California Budget Process. Limits State Spending. Increases “Rainy Day” Budget Stabilization Fund. Legislative Constitutional Amendment. “NOT REAL ESTATE RELATED”

Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:

Alameda AOR
Barbara Bolton
Connie Slattery Hanna

Bakersfield AOR
Robert Clerico
Bruce Angus Fraser
Douglas Mitchell
James Murray
Ken Pierce

Bay East AOR
Joe Crosslin
Lou Faught
Marina Meniatis
Teresa Nazareth
Jesse White

Beverly Hills/Greater LA AOR
Marlene Bernstein
Elaine Dannenberg
June Davies
Judy Dionzon
Sigrid Gordon
Zelda Gregg
Doris King
Frances Lewis
Joseph Fook- Li
Yettie Peper
Janet Reichmann
Avram Salkin
Norma Sharpe
Harriet Simon
Dinah Smith
Chrys Stamatis
Leah Steuer
MaryBeth Woods

Big Bear AOR
Carole Reid

Burbank AOR
Lawrence Auzene

Calaveras County AOR
Sandra Cleveland

Coastal Mendocino AOR
Robert Armitage

Conejo Simi Moorpark AOR
Regina Charles

Contra Costa AOR
Velda Arnold
Manjul Batra
Jo Carlson
Betty Case
Troy Cleland
Fred Doster
John Fazel
Linda Hempfling
Tomi Izuno
Frieda McReynolds-King
June Nye-Nebel
Leanora Taormina
Hugh Toloui

Downey AOR
Gil Vigil

East Valley AOR
Mina Naron

El Dorado County AOR
Raymond Bonsall
Janet Murphy

Fresno AOR
Beverly Contino
Kathy Gambero

Greater Antelope Valley AOR
Audrey Busbee
Samuel Hare

Greater San Diego AOR
Alice Lane
Yousif Shamoun

Idyllwild AOR
Barbara Hunt
Marge Muir
Jim Palmer

Lake County AOR
Beverly Caruso
Larry Oslin

Lodi AOR
Mel Cantaloupi
Evelyn Cordero
Carl Isaacs
Louis Levin
Charlotte Pedersen
Doris Powell
Robert Spivey
Ivan Suess
Edith Ullrich
Andrew Van Dyk

Marin AOR
Enid Pott

Monterey County AOR
Catherine Compagno
Sharon Gedryn
Rosemarie Schoening

Nevada County AOR
Dora Cividino

Newport Beach AOR
Carmen Carlton
Waldemar Moosmann
Shirley Stahler

North Bay AOR
Valerie Burns
Robert Hansen
Frances Lommori
Carol Roche

North San Diego County AOR
Marjorie Garritson
Bruce Mortland
Colleen Sansone
Frank Violi Sr.

Northern Solano County AOR
Rosemarie Ogan

Orange Belt BOR
George Goga
Robert Owen

Orange County AOR
Florence Bell
Natalie Benjamin
Sondra Blau
Kay Bogert
Robert Cronk
Theodore Denney
Sue Duesler
Anne Gilbert
Gwendolyn Green
Bill Hoy
Leo Lano
Richard Lorenz
Pat McCurdy
Marialice Olivo
Joyce Phillips
Sharon Russell

Oroville AOR
Shirley Witcher

Pacific West AOR
Carolyn Davis
Jerry Dierking
Jack Miller
Darleen Ragland
Palm Springs Regional AOR
Maryellen Hill
Dorothey Reed
Emanuel Segall

Pasadena-Foothills AOR
Sandra Burlingame
Mary Fox
Dick Grippi
Richard Kasten
Kenneth Kneale Sr.
Carol Majors
Vicki Neutra
Edward Quigley
Gretchen Seager
William Tema
Carmel Thomas
Judy Whisenant

Pismo Coast AOR
Tom Hicks
Mary Lee Iverson
Deloris Logan
Stella Lopez
Abe Viero

Rancho Southeast AOR
Joseph Chang
Adrianna Edwards
Andy Lin

Sacramento AOR
Gil Albiani
Jean Alley
Joe Bahoric
Patricia Cadwallader
Fred Clow
Ronald Cole
Joe Daehling
William DeBlonk
Obie Goins
Margret Heede
Rudy Loeffler
Richard O'Brien
C. Nikki Rueppel
Donald Schreiber
Judy Thompson
Marvelene Weyer
San Francisco AOR
Hyman Berston

San Mateo County AOR
Gerald Cauchi
Ernie Chan
Joseph Karp
Susan Kenney
Marianne Zanone Rush

Santa Barbara AOR
Lynn Bauersfeld
Chris Brainard
Gloria Carmichael
Don Eggebraaten
Jeff Farrell
Marcel Fraser
Emmet Hawkes
Lorayne Huffman
Linda Lorenzen-Hughes
Joan Roberts
Robert Ross
Edward Ruskowski
Joanne Stoltz

Santa Clara County AOR
Dick Alberts
Brigitte Avigdor
Albert Bresani
Elizabeth Burton
Jason Chartier
Clint Cox
Alice Desgrey
Alice Hunt
Kenneth Lee
Kon Lee
Zohreh Nekoo
Thakor Pandit
Fredric Phares
Julian Roberts
Robert Stewart
Trinidad Vasquez
Ralph Wait
Sherman Zell

Shasta AOR
Sandy Mays
Sigrid Rose

Silicon Valley AOR
Mary O’Neil

Southland Regional AOR
Harriet Leibovitch
Guy Remsen
Robert Walker

Southwest Riverside County AOR
Bernie Thomas

Tri-Counties AOR
Cleo Davis
Mike Rodriguez

Tulare County AOR
John Dorris
Richard Moreno

Ventura County Coastal AOR
Patricia Galgas
Caroline Gendron

Victor Valley AOR
Betty Henderson
Gary Stater
Millie Williams 

West San Gabriel Valley AOR
Leslie George

MLS Policy
1. That, upon final approval by NAR, C.A.R. Model MLS Rules be revised to (a) remove the short sale compensation exemption to the unilateral compensation rule, (b) mandate that short sale status be disclosed by participants and (c) place the mandated disclosure into Tier One of the C.A.R. Model Citation Policy.  Click here to view the complete text of the approved Model MLS Rules change.
2. That, upon final approval by NAR, C.A.R. Model MLS Rule 13.2.2 be revised to incorporate the new NAR Lockbox Policy in the proposed C.A.R. Model Lockbox Requirement Rule.  Click here to view the complete text of the approved Model MLS Rules change.

Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS Board of Directors be approved, and the C.A.R. President be instructed to elect these individuals on behalf of C.A.R.:

James Link, Van Nuys, Southland Regional Association of REALTORS®
Larry Matos, Oakdale, Century 21/M&M Associates
Dana Potter, Northridge, Pinnacle Estate Properties
Rick Turley, San Ramon, Coldwell Banker Residential Brokerage

Note: The following REBS Directors have continuing terms:
David Cabot, San Diego, Prudential Realty
West De Young, South Pasadena, Dilbeck Real Estate
Heidi Rickerd-Rizzo, Napa, Terra Firma Global Partners
Joel Singer, Los Angeles, CALIFORNIA ASSOCIATION OF REALTORS®
Jeannette Way, Vacaville, Gateway Realty

Standard Forms Advisory
1. It was reported for information only that there were 12 Regional Representative reports given to the Standard Forms Advisory Committee (SFAC) meeting.  The committee received comments primarily on  whether to include a checkbox within the RPA for the SPQ. There was a resounding vote against creating such a checkbox.  Favorable feedback was given for the separation of the PAA form and the creation of the PSD form.

The SFAC approved the release of the 15 new and 28 of the 29 revised forms in November 2012.  The Counter Offer (C.A.R. Form CO) was removed from the November release due to concerns received via regional reports and comments at the Forum on Forms regarding making the buyer’s initial deposit proportional to the purchase price.  Additionally, the SSIA form will be modified prior to release to include general information regarding the California Homeowner Bill of Rights and the National Mortgage Settlement Act. Below is a list of all of the new and/or revised November forms.

New
AAA – Additional Agent Acknowledgement
ABA – Additional Broker Acknowledgement
AFA – Assumed Financing Addendum
BUO – Back-Up Offer Addendum
CCA – Court Confirmation Addendum 
FVAC - FHA / VA Amendatory Clause 
LID - Landlord in Default Addendum                                                                                                   POAA – Power of Attorney Signature Addendum
PSA – Probate Signature Addendum
PSD - Parking & Storage Disclosure
SIP – Seller In Possession Addendum
TIP – Tenant In Possession Addendum
TLA – Trust Listing Agreement
TSA – Trust Signature Addendum
VLL – Vacant Land Listing Agreement

Revised
AD – Disclosure Regarding Real Estate Agency Relationships
ARC – Authorization to Receive and Convey Information
BRNN - Buyer Representation Agreement (Non-Exclusive/Not for Compensation
CA – Commission Agreement
CLA – Commercial & Residential Income Listing Agreement
CND – Confidentiality and Non-Disclosure Agreement
COP – Contingency For Sale Or Purchase Of Other Property
HOA - Homeowner Association Information Request
LL – Lease Listing Agreement (Exclusive Authorization to Lease or Rent)
LR – Residential Lease or Month-to-Month Rental Agreement
LRA - Application to Rent/Screening Fee
NAF - Additional Information Regarding Termination of Tenancy Within One Year After Foreclosure
NRI - Notice of Right to Inspection Prior to Termination of Tenancy
NTT - Notice of Termination of Tenancy
NTAF – Notice of Termination of Tenancy Within One Year After Foreclosure
OA – Option Agreement
PAC - Personal Assistant Contract
PMA – Property Management Agreement
PPA – Probate Purchase Agreement and Joint Escrow Instructions
RID – Increased Deposit/Liquidated Damages Addendum
RLA – Residential Listing Agreement – Exclusive
RLAA - Residential Listing Agreement - Agency
RLAN - Residential Listing Agreement - "Open"
SBSA – Statewide Buyer and Seller Advisory
SSIA - Short Sale Information Advisory
TDS – Real Estate Transfer Disclosure Statement
VLQ - Seller Vacant Land Questionnaire
WPA - Wood Destroying Pest Inspection and Allocation of Cost Addendum

For April 2013 forms release the committee had considerable discussion regarding the RLA and the alternatives for when a commission is earned.  Further discussion will take place at the January meetings.

The SFAC also received updates regarding the following sub-committees/study groups:
Property Management
CARSF Subcommittee 
Probate Study Group

Finally, the SFAC reviewed 43 of the 123 comments received and will have a conference call to review the balance of comments.

Strategic Planning and Finance
1. That the Statement of Income and Expenses by program for the seven months ending
July 31, 2012 be approved.

Total C.A.R.
Revenue: $21,501,300
Expenses: $14,023,000
An excess of income (including investment income) over expenses of $7,478,300

Political Activities Fund
An excess of income over expenses of $2,157,400

Issues Action Fund
An excess of income over expenses of $1,060,400

REALTOR® Action Assessment
An excess of income over expenses of $6,687,400

The C.A.R. Balance Sheet as of July 31, 2012
Total Assets: $67,533,600 (of which $57,241,500 are Current Assets)
Total Liabilities: $4,901,400 (of which $4,436,800 are Current Liabilities)
C.A.R. Fund Balance: $62,632,200

2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2012 be approved.
Total C.A.R.
Revenue: $26,216,200
Expenses: $27,523,600
An Excess of Expenses (Including Investment Income) over Income: $1,307,400

Political Activities Fund
An Excess of Income over Expenses: $1,246,800

Issues Action Fund
An Excess of Income over Expenses: $735,400, this amount will be allocated to IMPAC as approved by the Directors.

REALTOR® Action Assessment
An Excess of Income over Expenses: $6,004,300, this amount will be allocated to PACs.

3. To approve a 2013-2015 strategic plan and 2013 budget with the following criteria:
a. C.A.R. Operating Revenue: $26,853,500
    C.A.R. Operating Cost: $28,943,200
    Net Deficit (After Investment Income): $2,089,700
b. Issues Action Fund Revenue: $1,469,900
    Issues Action Fund Program Cost: $838,000
    Issues Action Fund Transfer to IMPAC: $631,900
c. Political Activities Fund Revenue: $1,469,900
    Political Activities Fund Program Cost: $1,243,600
    Political Activities Fund Net Balance: $226,300
d. REALTOR® Action Assessment: $7,202,400
    REALTOR® Action Assessment Program Cost: $1,181,500
    REALTOR® Action Assessment transfer to Political Action Committee: $6,020,900
e. 127.5 budgeted C.A.R. staff positions.
f. Membership dues, including $115 for operating programs, $10 for the Political Activities Fund, $10 for the Issues Action Fund, and $49 for the REALTOR® Action Assessment are set at a total of $184 per member (predicated on 2013 year end membership of 155,000).
g. New member fee be set as $30 per new member.
h. A 2013 Capital Budget (funded with Association reserves) totaling $417,300.

4. To approve for members in areas not serviced by local associations an additional $30 in membership dues. This amount would be in excess of the dues approved for members coming through the local associations.
5. That $285,900 be approved for an additional three percent pension contribution to the C.A.R. and REBS employee pension plan for 2012, augmenting the previously approved budget of ten percent.
6. That an augmentation of $135,000 be added to 2012 capital budget, which will be funded with Association reserves, for furniture for the relocated Sacramento office.
7. That an augmentation of $95,800 be added to the 2012 capital budget, which will be funded with Association reserves, to upgrade the trends database, and that an additional augmentation of $4,500 in operating expense be allocated to the 2012 budget to update the trends database.
8. That the 2012 REBS dividend to C.A.R. be waived.

Transaction and Regulatory
1. That C.A.R. "SUPPORT" legislation to prohibit the use of eminent domain to seize “underwater” notes.
2. That C.A.R. “SPONSOR” legislation to require all regulatory informational hearings, workshops, reports and 15-day hearing notices to be included in the California Regulatory Notice Register.
3. That C.A.R., in conjunction with NAR, “OPPOSE” the securitization of pools of single family residential (1-4 unit) REO property rentals.
4. That C.A.R., in conjunction with NAR, “SUPPORT” renters to homebuyers program that speeds up the ability of past distressed sellers to finance the purchase of a home.
5. That C.A.R., in conjunction with NAR, not oppose the Freddie Mac Investor Select program; and seek amendments that no bulk sale take place until five weeks after the REO has had a price adjustment.
6. That C.A.R., in conjunction with NAR, not oppose the sale of FHA distressed notes, and seek amendments that a two year sunset date be applied to the program.
7. That C.A.R. “SPONSOR” legislation in 2013 to maintain the Department of Real Estate’s in-house regulatory enforcement and legal staff within the department.
8. That C.A.R. Leadership appoint representatives to the Department of Real Estate Task Force on team names, business names and virtual offices.

Other
1. The following individuals were recognized for their outstanding service to the Association in 2012.

Committee Liaisons
Patricia Bouie Hinds
Toby Bradley
Allen Chiang
Kathy Mehringer
Mel Wilson
John Yen Wong
Judy Zeigler

Outstanding Committee Chairs
Dennis Badagliacco, Legal Action Fund Trustees
Lorraine Clark, California REALTOR® Expo Advisory Committee
John Torres, Housing Committee

President’s Award
Carol Facciponti


Revised: October 8, 2012

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