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 hereto 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