CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 27 -- 28, 2006
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2006
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. For more information
Common Interest Development 1. That C.A.R. include in
its homeowner association reserve account legislation a provision to
require homeowners to periodically approve a payment plan to fund their
homeowner association reserve accounts.
Note: The following motion was adopted by the C.A.R. Board of Directors
in September 2005
That C.A.R. "SPONSOR" legislation requiring homeowner
associations to: a) disclose how much and when reserve accounts will be
funded; and, b) minimize reliance on special and emergency assessments to
fund reserve accounts.
Eminent Domain Task Force
1. That C.A.R. "SUPPORT" legislation concerning eminent domain that
-Prohibit the taking of single family property by eminent domain for any
use other than for public use.
-Amend the eminent domain law to make it easier for property owners to
transfer their existing property tax base
-Require courts to award the prevailing plaintiff attorney fees and costs
should the plaintiff prevail in an eminent domain proceeding when
challenging: a) the validity of the taking of property; or b) the valuation
of the property.
-Require: a) independent licensed appraisers to be used in eminent domain
proceedings; and b) redevelopment agencies to reimburse property owners the
cost of an additionalappraisal in eminent domain proceedings.
2. That C.A.R. "SUPPORT" legislation concerning redevelopment law that
-Substantially tighten the definition of "blight" used by redevelopment
agencies proposing to create or expand redevelopment project areas.
-Reduce the time period during which the initial finding of "blight" may
exist in a newly created redevelopment project area.
-Reduce the time period during which redevelopment agencies may take
property by eminent domain.
-Require a re-evaluation of the necessity of a redevelopment area on a
-Require redevelopment agencies to disclose to all property owners that
they may transfer their property tax base if the qualified replacement
property is within the same county.
1. That the following 2006 Presidential Appointments be approved: a)
Executive Committee, b) Directors at Large, and c) Trustee Groups (on
2006 Executive Committee
1. Vincent Malta, San Francisco, President
2. Colleen Badagliacco, Santa Clara, President-Elect
3. Jim Liptak, Paso Robles, Treasurer
4. Joel Singer, Los Angeles, Executive Vice President
5. Tony Agurs, E. San Diego County
6. Paula Colombo, Sacramento
7. John Cribb, San Luis Obispo
8. Don Faught, Bay East
9. Jim Hamilton, South Bay
10. Linda Harrison, San Francisco
11. Ed Herold, Contra Costa
12. Janet Houde, Santa Clara County, RC
13. Dan Lanning, Glendale, AE
14. Susan Marshall, San Diego
15. Art Nellessen, Humboldt County
16. Tica O'Neill, Beverly Hills/Greater LA
17. Frank Valletta, North San Diego County
2006 Directors at Large
1. Bob Ausherman, Tulare
2. Cindy Baker, Pacific West
3. Donna Bayet, Santa Barbara
4. Virginia Butler, Palos Verdes Estates
5. Billie Jean Chadwick, Lompoc Valley
6. Lowell Flemmer, Lodi
7. Janet Halliburton, Oakland
8. Jeannie Hamann, Solano
9. Lois Harris, Oakland
10. Janene Klocek, Yucaipa
11. Carol Kruckenberg, Santa Barbara
12. Brian Malone, Glendale
13. Dawn O'Rourke, Humboldt County
14. Georgia Richardson, Oakland
15. Debbie Rodgers, Conejo Valley
16. Norma Scantlin, E. SanDiego County
17. Lenny Sciacca, Tulare County
18. Margaret Svec, Shasta County
19. Sherry Tietjens, Tulare
20. Steve Weiss, Scenic Coast
Scholarship Foundation/Education Foundation (2006-2010)
Yin Bihr, W. San Gabriel Valley
Jackie Crowley, Palos Verdes Peninsula
Margaret Svec, Shasta County
Mark Consalvo, South Bay (Filling a vacancy through 2009)
Legal Action Fund Trustees (2006-2010)
Michael Ferlisi, Arcadia
Bill Podley, Pasadena Foothills
2. That a Resolution of Appreciation for 2005 President Jim Hamilton be
3. That a Resolution of Appreciation for Tom Carnahan, Recipient of the
2005 California Distinguished REALTOR® Award, be approved.
1. That C.A.R. SPONSOR a bill this year that will:
a. Amend the permit streamlining act to apply to subdivisions that have an
appropriate percentage of affordable housing
b. Require local governments to report to the state on their
c. Clean-up the no-net-loss housing law by increasing enforcement
d. Rename the "anti-NIMBY" law to the "Housing Accountability Act"
e. Repeal the Granny Flat law (which is not used due to the law on second
f. Defer local government's development fees until occupancy permits are
issued for housing developments with at least 49% lower-income units in
cities that offer meaningful incentives
2. It was reported for information only that C.A.R. should embark on a
campaign to educate and motivate candidates for Governor, State Treasurer,
and the Legislature on housing issues and solutions.
1. It was reported for information only that the IMPAC Trustees authorized
the following contributions:
-- $4,886.70 to Pacific Southwest AOR for new GAD capital expenses.
-- $20,000 to California Natural Resources Group to support reform of
Endangered Species Act.
-- $17,500 to support Pacific Legal Foundation's litigation program in
defense of private property rights.
-- $15,000 to Civil Justice Association of California for annual membership
dues and Board member position.
Legal Action Fund
1. That amendments to the Legal Action Fund bylaws that would increase the
number of trustees from 9 to 11 and change the quorum from 5 to 6 be
2. It was reported for information only that the following
developments had taken place in significant cases being tracked by the
Legal Action Fund Trustees:
Bakersfield AOR v. BLS. This involves a privately broker-owned
MLS reproducing selected listings without the broker or other MLS's
consent. The Trustees reaffirmed their previous financial support of
this case upon certain conditions being met, and further allowed
redirection of remaining funds previously allocated for an amicus brief
upon those same conditions.
Strebel v. Brenlar. This involves damages in a case involving two separate
properties. One didn't close because of tax liens and the jury held
that the agent concealed this causing the buyer to release contingencies
and sell his existing home. He tried to find alternative properties
in the new area, could not, but did not reinvest in the old area. The
jury awarded actual damages, emotional distress damages and lost
appreciation on the proceeds of the home sold but not reinvested. The
trustees authorized filing a brief. C.A.R. filed its brief stating
that emotional distress damages and lost appreciation were not proper in
this case. The Court issue a ruling in January that lost
appreciation is a proper method of evaluating damages in this case. The
facts in this case were difficult to overcome.
Colliau v. Williams. The Trustees authorized an amicus brief in
a malicious prosecution against a lawyer. This case involves
whether a buyer who cancelled a transaction because he was unable to
qualify for a loan and then sued a subsequent purchaser (who also happened
to be the property inspector on the failed transaction) had probable cause
to sue the subsequent purchaser. The current litigation is a
malicious prosecutionagainst the lawyer in the case only since the buyer
who cancelled because he couldn't qualify for the loan had since filed for
bankruptcy. The lawyer/defendant did not win a motion to strike, a
SLAPP motion typically the response to maliciousprosecution lawsuits.
Gravillis v. Reed. The Trustees authorized a brief on a case
involving C.A.R.'s arbitration clause. The issue is whether a broker
can compel arbitration using CAR's arbitration clause as a third-party
opt-in when the principals in the transaction have chosen to litigate even
though they initialed the arbitration clause.
Pair v. Mogahavem. This case involves whether a person responding to
a claim as a defendant is required to offer mediation tomaintain the right
to claim attorneys fees in the underlying litigation. C.A.R.'s
concern is the possible ramification of multiple mediations in a single
case. The owner of the property filed a malicious prosecution after
the first lawsuit was dismissed without prejudice, drawing a renewed
counterclaim on the transaction.
1. That C.A.R. "SUPPORT" a legislative extension of the expiration date for
existing enterprise zones.
2. That C.A.R. "SPONSOR" legislation to repeal the 4-year "Degree Broker"
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
Mary Jean Valiquette
Beverly Hills/Greater Los Angeles AOR
Ronald H. Henry
Gary J. Herman
William Clifford Tavelman
Monterey County AOR
Jacqueline Y. Busby
Patricia C. O'Shaughnessy
Northern Solano County AOR
Pacific West AOR
Rachel M. Stone
Ardis Ronelle Thornley
Marie G. Lee
Dennis L. Swanson
San Diego AOR
James L. Bernhardt
Fred J. Cuthill
Crisanto M. Garrido
Robert Lowry Smith
Santa Clara County AOR
Gerald E. Hamilton
David L. Scott
Santa Cruz AOR
Santa Maria AOR
Veda Joy Lasseter
Southland Regional AOR
Southwest Riverside County AOR
Tahoe Sierra BOR
John Wesley Howell, Jr.
Yosemite Gateway AOR
Ruth C. Hunt
MLS/ Computer & Business Technology
1. That C.A.R. Model MLS Rules be revised to revoke the VOW policy
previously adopted into the C.A.R. Model MLS Rules (C.A.R. Model MLS Rule
12.19, and the parity provisions or other miscellaneous references to the
VOW rules set forth in Rules 12.8, 12.11, 12.12, 12.14, 12.15, 12.15.1,
12.15.4, and 12.15.5.)
2. That C.A.R. Model MLS Rules within Section 9 be amended to incorporate
NAR Standards of Practice 1-8,1-15, 3-2 and 3-8.
1. It was reported for information only that the Professional Standards
Committee will establish a Working Group to study and recommend changes to
strengthen and streamline ethics hearing procedures.
Property Information/MLS Task Force 1. It was
reported for information only that the Property Information/MLS Task Force
Standard Forms Advisory
1. It was reported for information only that many comments were
received on two forms (Buyer Inspection Election - BIE; Agent
Inspection Disclosure - AID) that are currently being considered by an
Inspections Study Group. These comments were presented to the
Committee and are being forwarded to the Inspections Study Group. The
Inspections Study Group is additionally reviewing the Seller Vacant Land
Questionnaire (VLQ).The Committee received comments from seven Regional
Representatives. The drafts of forms scheduled for release in April
were approved by the Committee. This includes four new forms, the
Additional Signature Addendum (ASA), I Am a REALTOR (IMR), Mediation and
Arbitration (MAA) and the Withdrawal Of An Offer (WOO). The Committee
also decided to issue a revised Estimated Buyer Cost (EBC) and Estimated
Seller Proceeds (ESP) in April that will be interactive on WINForms.
Strategic Planning & Finance 1. That the
Statement of Income and Expenses by program for the eleven months ending
November 30, 2005 be approved.
Revenue of $28,340,900
Expenses of $21,639,800
An excess of income over expenses of $6,701,100
Political Activities Fund
An excess of income over expenses of $985,500
Issues Action Fund
An excess of income over expenses of $1,140,000
The C.A.R. Balance Sheet as of November 30, 2005
Total assets of $33,636,500 (of which $24,108,300 are current assets)
Total liabilities of $3,838,500 (of which $3,705,900 are current
C.A.R. Fund Balance of $29,798,000
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2005 be approved.
Revenue of $28,959,500
Expenses of $25,698,100
An excess of income overexpenses of $3,261,400
Political Activities Fund
An excess of income over expenses of $904,000
Issues Action Fund
An excess of income over expenses of $1,060,600. This amount will be
allocated to IMPAC as approved by the Directors.