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2013 Winter Summary of Action Items

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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. 

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.

Ethics and Professionalism Task Force
The Ethics and Professionalism Task Force presented a report and initial recommendations for information only.  Action on these recommendations is expected at the Spring Business Meetings.  The report is available here: Ethics and Professionalism Task Force Report (Rev: January 24, 2013)

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.

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

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:

$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.

Revised: January 29, 2013