CALIFORNIA ASSOCIATION OF REALTORS® BOARD OF DIRECTORS 536th SESSION JANUARY 25 - 26, 2013
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Winter 2013 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.
During the Board of Directors Meeting, the Directors were informed about an updated and expanded Conflict of Interest Policy and Disclosure Statements, available for review here: C.A.R. Directors and Committee Members Conflict of Interest Policy (Draft). Prior to the next Business Meetings, all C.A.R. Directors and Committee Members will be asked to acknowledge that they have reviewed and understand the policy.
California REALTOR® EXPO Advisory 1. It was reported for information only that the California REALTOR® EXPO will be held October 8 - 10, 2013 in Long Beach. The theme will be “CHAMPIONS OF HOME.”
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 $9,000.
CREPAC 1. It was reported for information only that CREPAC-Federal participated in 52 congressional races in the 2012 Election cycle, 46 of which were victorious. The Trustees approved a contribution of $710,000 from CREPAC-Federal to NAR's RPAC for C.A.R.'s 2013 "Fair Share" contribution. CREPAC participated in 96 races during the 2012 Election cycle, 84 of which were victorious. CREPAC contributed a total of $292,800 to bi-partisan caucuses, candidates for special 2013 elections, as well as to the Democratic and Republican Parties. CREIEC participated in a total of 16 independent expenditures, 14 of which were victorious. CREIEC received over $920,000 in funding from NAR Independent Expenditures Program and conducted support for a state race and twenty five independent expenditures for local candidates. CREIEC will continue to use NAR's independent expenditure program in the future.
Executive 1. That the following 2013 Presidential appointments be approved:
2013 Executive Committee Don Faught Kevin Brown Chris Kutzkey Joel Singer LeFrancis Arnold Jeff Barnett Jennifer Branchini Paul Cardus Cynthia Carley Mark Marquez Ann Pettijohn Richard Rosenthal Tracey Saizan Phillip Schaefer Charlene Singley Quincy Virgilio Pat Zicarelli
2013 Directors at Large Darnella Barnes Kevin Birmingham Mark Burns Virginia Butler Tiffany Combs Douglas Dahm Leslie Dopp-Manzone Todd Earnhart Jean Hall Tangie Leverett Anita J. Martin RoseMarie McNair Bobbie Nelson Patrick Prince Dino Riggio Linda Saine Scott Swendiman Jim Whitlach
2. To approve a special resolution honoring Immediate Past President LeFrancis Arnold. (Click here to view the resolution.)
3. To approve a special resolution honoring 2012 California Distinguished REALTOR® Award Recipient Carylon Dopp. (Click here to view the resolution.)
Home Ownership Housing 1. It was reported for information only that the Home Ownership Housing Committee created two working groups. The first group will focus on the "squatter" issue. The second group will focus on homeowners association assessment delinquency problems.
IMPAC 1. It was reported for information only that the IMPAC Trustees approved the following funding requests: --$15,000 to LA Area REALTORS® to support the Committee to Protect Public Safety Yes on Proposition A campaign. --$55,000 to the Civil Justice Association of California --$40,000 to the Pacific Legal Foundation
Membership 1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Bay East AOR Jack Kapoor
Big Bear AOR Edward Delcoure
Burbank AOR Ugo Iacobellis Edward Philhower Wayne Schulze
Calaveras County AOR Lawrence Muetterties
Conejo Simi Moorpark AOR Virginia Currie
Contra Costa AOR Mary Chatton Brown
Delta AOR Fran Ranalli
Downey AOR Toni Stewart
Fresno AOR Barbara Anderson Charles Figg Herb Jansen
Inland Valleys AOR Don Shore Dory Gray
Monterey County AOR Christel Allford Suzanne Burr Lois Carwin Gaylon Haney Mary Kleinbardt Geraldine Lukenas Milton Marquard Walter Rossi Thomas Rowley
Oroville AOR Adonna Brand
Pacific Southwest AOR Foo Ling Painter
Pacific West AOR Bobbie Ash Robert Caulfield
San Francisco AOR Jack Peterson
Santa Maria AOR Jean Studer
Southwest Los Angeles AOR Cora Rawls
Southwest Riverside County AOR John Litaway Ben Rodriguez
Tahoe Sierra BOR Ed Candler
Tulare County AOR Kathleen Enos Wanda Roberts William Rose
Ventura County Coastal AOR Faith Cosby Al Fox Carole Hernandez
West Contra Costa AOR Sheila Emery Glendon Fultz Ben Johnson Mike Zeelen
Yosemite Gateway AOR Diane Jines
MLS Policy 1. That, upon final approval by NAR, the C.A.R. Model MLS Rules be revised to incorporate the NAR mandated changes to IDX Policy as set forth in redline fashion [click here].
2. It was reported for information only that the MLS Policy Committee called for a Work Group to examine the MLS Mandatory Submission Rule and make recommendations for revising the C.A.R. Model MLS Rules to clarify ambiguities that periodically arise in the interpretation of “necessary signatures” and “start date of the listing.”
Political Activities Fund 1. It was reported for information only that the Political Activities Fund Committee allocated funds for the following C.A.R. programs:
$509,100 for the Member Mobilization program.
$627,500 for the Government Affairs Field program.
REALTOR® Action Fund 1. That the RAA and RAF Political contributions allocation formula be as follows for 2013:
RAA: $49: Personal/Corporate Contributions 0% to CREPAC/Federal 25% to CREIEC 45% to CREPAC State 30% to LCRC
Voluntary RAF: $1 up to $200: Personal Contributions 70% to CREPAC/Federal 30% to LCRC Above $200 up to $5,000 to CREPAC/Federal
$1 up to $200: Corporate Contributions 70% to CREIEC 30% to LCRC Above $200 up to $5,000 to CREIEC
[Please note that no corporate contributions can be allocated to CREPAC/Federal.]
Standard Forms Advisory 1. It was reported for information only that there were 27 Regional Representative reports given to the Standard Forms Advisory Committee (SFAC). The committee heard comments regarding the Residential Listing Agreement (RLA) and Counter Offer (CO) drafts as well as whether there is a need to create a new Common Interest Development (CID) form. The SFAC reviewed and approved the following drafts scheduled for release in April 2013: California Residential Purchase Agreement & Joint Escrow Instructions (RPA) Commercial Property Purchase Agreement & Joint Escrow Instructions (CPA) Commercial Lease Agreement (CL) Counter Offer (CO) Disclosure & Consent for Representation of More Than One Buyer or Seller (DA) Modification of Terms/Addendum to Authorization & Right to Sell, Acquire or Rent, or other Agreement between Principal & Broker (MT) Seller Property Questionnaire (SPQ) Residential Listing Agreement (RLA) Keysafe/Lockbox Addendum & Tenant Permission to Access Property (KLA) Seller Instruction to Exclude Listing from MLS or Listing Information from Internet (SEL)
After receiving extensive input from the regional representatives and much discussion by the SFAC, the committee decided on the following: the proposed change to the Counter Offer adding language concerning liquidated damages and arbitration will not be made. However, the addition of a rejection of counter offer box will be added.
In response to a recent California Appellate court case rejecting a broker’s claim to a commission for bringing a full price, full term offer to the seller, the SFAC decided to amend the RLA. The court case was discussed at the Forum on Forums and SFAC meetings in May. Additionally, the court case and alternative commission language to address the court case was discussed at the Forum on Forums and SFAC meetings in October and this meeting. The SFAC unanimously decided the commission language in the Residential Listing Agreement (RLA) be modified to provide that a listing broker is only entitled to compensation under the listing agreement if the seller accepts an offer provided the transaction closes, or is prevented from doing so by seller.
The SFAC decided that a stand-alone Common Interest Development disclosure form was not needed at this time.
The SFAC also received updates regarding the soon-to-be formed study groups: RPA Study Group zipForm/SFAC Joint Initiative
Additionally, the committee approved the creation of a vacant land lease study group to report back to the SFAC. Finally, the SFAC reviewed 39 of the 100 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 eleven months ending November 30, 2012 be approved.
Total C.A.R. Revenue of $24,804,600 Expenses of $23,358,000 An excess of income (including investment income) over expenses of $1,446,600
Political Activities Fund An excess of income over expenses of $1,870,800
Issues Action Fund An excess of income over expenses of $855,000
REALTOR® Action Assessment An excess of income over expenses of $6,531,100
The C.A.R. Balance Sheet as of November 30, 2012 Total assets of $61,129,300 (of which $50,877,500 are current assets) Total liabilities of $4,820,700 (of which $4,812,100 are current liabilities) C.A.R. Fund Balance of $56,308,600
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 of $26,146,700 Expenses of $27,232,200 An excess of expenses over income (including investment income) of $1,085,500
Political Activities Fund An excess of income over expenses of $1,371,900
Issues Action Fund An excess of income over expenses of $745,000, this amount will be allocated to IMPAC as approved by the Directors.
REALTOR® Action Assessment An excess of income over expenses of $6,332,000, this amount will be allocated to PACs.
Transaction and Regulatory 1. It was reported for information only that staff further research sponsoring legislation to empower the Office of Real Estate Appraisers (OREA) to regulate Appraisal Management Companies so as to prevent "geographic incompetence" of appraisers assigned out of their normal work area.