CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 19 - 20, 2007
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2007
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
C.A.R. Scholarship Foundation/C.A.R. Education
1. It was reported for information only that the C.A.R. Scholarship
Foundation awarded scholarships totaling $13,500.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO
will be held in Anaheim on October 9 - 11, 2007. The California
REALTOR® Showcase will be held in Sacramento on June 6 - 7,
Common Interest Development
1. That C.A.R. develop a consumer information booklet for Common Interest
Developments based on the rough draft booklet developed by the CID
Committee as framework for that effort.
Educational Services Advisory
1. It was reported for information only that the committee has received
very positive responseto the recently created C.A.R. Forms Tutor
program. The committee will continue to work with C.A.R. staff to
increase member awareness of C.A.R. educational offerings, and to evaluate
and develop programs and improve existing programs that benefitthe
1. That the following 2007 Presidential appointments be approved:
2007 Executive Committee
Colleen Badagliacco, Santa Clara, President
William E. Brown, Bay East, President-Elect
Jim Liptak, Paso Robles, Treasurer
Joel Singer, Los Angeles, Executive Vice President (Ex-Officio)
Kevin Brown, Bay East
Phyllis Carmichael, Silicon Valley
Virginia Field, North San Diego County
Liz Fitzgerald, Orange County
Dale Gray, Central Valley, AE
Heath Hilgenberg, California Desert
Beverly James, San Luis Obispo
Vincent Malta, San Francisco
Leslie Munger, California Desert
Lisa Muetterties, Calaveras County, RC
David Tanner, Sacramento
SteveWhite, Southland Regional
Kelvin Wong, Arcadia
2007 Directors at Large
Jay Avirom, Montebello District
Patricia Bouie-Hinds, Oakland
Ann Bracci, Alameda
Chris Crocker, Palos Verdes Peninsula
Don D. Davis, Shasta County
Michael Ferlisi, Arcadia
Jeannie Hamann, Solano
Ruth Hayles, Rancho Southeast
Larry Heine, Lake County
Melanie Hildebrand, San Mateo County
Laura Houle, East San Diego County
James Irving, Paso Robles
Dolores Golden, Southwest Los Angeles
Rose Marie McNair, Santa Cruz
Kathy Mehringer, Conejo Valley
Karen O'Brien, Rim O' the World
Elaine Pettersen, Ventura County Coastal
Lenny Sciacca, Tulare County
Bruce Southstone, Santa Cruz
Anita Thede, Berkeley
C.A.R. Scholarship Foundation/C.A.R. Education Foundation (2007-2011)
John Chufar, Santa Barbara
Tracy Shumard, Humboldt County
Legal Action Fund Trustees (2007-2011)
Bob Hunt, Orange County
Clay Sigg, Sacramento
2. That a Resolution of Appreciation for 2006 President Vince Malta be
3. That a Resolution of Appreciation for Larry Fargher, Recipient of the
2006 California Distinguished REALTOR® Award, be approved.
1. That C.A.R. recommends to NAR that NAR continue to explore the issue of
creating a new U.S. retirement visa designation.
2. That C.A.R., in conjunction with NAR, pursue a small business exclusion
in any federal data privacy legislation and oppose federal preemption of
state data privacy laws.
3. That C.A.R., in conjunction with NAR, adopt a neutral position on
proposed "net neutrality" provisions in any federal telecommunications
1. That C.A.R move forward with the previously approved "spot" bill in
cooperation with the League of Cities to direct the Department of Housing
and Community Development to define the factors and findings regarding
neighboring area housing needs that must be used whenever a housing project
is disapproved or downsized.
NOTE: During the October 2006 meeting the Board of Directors approved a
motion to introduce a C.A.R. SPONSORED "spot" bill to require local
governments that reduce the number of proposed lots in asubdivision to
adopt findings and declarations demonstrating the impact the reduction has
on adjacent communities.
1. It was reported for information only that the IMPAC Trustees approved
the following contributions:
--$17,500 to the Civil Justice Association of California for annual
--$17,500 to the Pacific Legal Foundation's litigation program in defense
of private property rights
--$20,000 to the California Natural Resources Group to supportreforms of
the Endangered Species Act
--$25,000 to the Residents Against Planning Restrictions to oppose a
no-growth initiative in the city of Sierra Madre at the request of the
Arcadia Association of REALTORS®
--$120,000 to fund an earned media/education campaign to support the
passage of C.A.R. sponsored legislation on Private Transfer Tax.
Land Use and Environmental 1. It was reported for
information only that the Land Use and Environmental Committee recommended
that the Standard Forms Advisory Committee consider adding disclosure
language regarding the Williamson Act into the statewide buyer/seller
1. That C.A.R. sponsor legislation to require a separate seller disclosure
to potential home buyers as to whether the home they are considering
purchasing requires the payment of a Private Transfer Tax (PTT), the
percentage of the home price constituting the PTT (possibly with dollar
amount examples), and/or the duration of the PTT, and that it may
potentially affect the future resale value of the property.
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
Beverly Hills/Greater LA AOR
Citrus Valley AOR
Conejo Valley AOR
Alexander Manos, Sr.
Greater Antelope Valley AOR
John Thomas Gardner
Kern River-Lake Isabella BOR
Montebello District BOR
Ralph Richard Lopez
Pacific West AOR
Ann Elizabeth Pendo
Simi Valley-Moorpark AOR
Southland Regional AOR
MLS Working Group
1. That C.A.R. authorize the MLS Working Group to develop a detailed
business plan to create an aggregated Statewide listing database for review
at the June 2007 Business Meeting.
2. That C.A.R. authorize the MLS Working Group to develop a detailed
business plan to create a Statewide MLS that would comply with the 6
principles for review at the June 2007 Business Meetings. In addition,
local MLS and Associations are encouraged to limit long term contractual
commitments extending beyond December 2008.
3. That the Strategic Planning and Finance Committee accelerate their
efforts to establish a trusted public site for consumer access to a broad
range of consumer real estate needs.
4. That C.A.R.Business Plans should take into consideration the
technological and value proposition of current data aggregation initiatives
in Northern and Southern California.
Nominating & Election Task Force
1. It was reported for information only that the mission of the Nominating
and Elections Task Force shall be to review the C.A.R. Campaign Guidelines
and the procedures utilized by the Nominating Committee to nominate
candidates for C.A.R. Officer positions, and make recommendations to the
Nominating Committee and the Board of Directors by October 2007 if any
changes are proposed. The Task Force shall focus on the following
--campaign timing and the commencement of formal campaign activities
--encouragement of low key campaigns so thatall qualified candidates have a
fair and equal chance to seek office
--enforcement of the campaign guidelines
--the role of the Nominating Committee and of the Nominating Committee
Members and Alternates
--opportunities for candidates to present their views and qualifications to
the Directors, and for Directors to participate in the election
--the procedures utilized to conduct a comprehensive evaluation of
candidate qualifications, determine that a candidate is qualified,
andensure that elected Officers remain qualified during their term of
The process of nominating and electing Directors for Life, and the process
of selecting NAR Directors, are outside of the scope of the charge of the
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory
Committee received reports from 17 regional representatives. Of note,
the Agent Visual Inspection Disclosure form (AVID) was generally
supported. The committee heard a request to provide a form to be
supplied to escrow or other agencies seeking donations from participants to
the real estate transaction for the Housing Affordability Fund. The
committee determined that this request would be better addressed via a
promotional flyer found on the C.A.R. website. The committee approved
the recommendation from the Standard Forms Transaction Task Force to adopt
the eight guidelines informally used as a standard checklist or worksheet
for formsdevelopment. The balance of the recommendations will be
reviewed by the committee at the June meeting. The committee reviewed
two drafts of the Buyer Inspection Elections (BIE) and determined not to
proceed with this form. Additionallythe committee reviewed the issue
of how to address private transfer tax within C.A.R. Standard Forms.
Language will be added to the Statewide Buyer and Seller Advisory (SBSA) in
April 2007 and possibly the Seller Property Questionnaire (SPQ). The
committee also agreed to revise the title of the "Buyer Broker Agreement"
forms to "Buyer Representation Agreement." Two drafts involving
manufactured homes were presented. The Manufactured Home Purchase
Agreement Addendum and the Manufactured Home Advisory and Release of
Liability drafts were both approved for release in April 2007. The
committee reviewed 22 of the 62 comments received and will hold a follow up
conference call to discuss the remaining items.
Standard Forms Transaction Task Force 1. To approve
the Final Report of the Standard Forms Transaction Task Force, including
Conclusions and Recommendations:
--Incomplete education and training of agents remains the greatest
challenge regarding standard forms and transaction products. C.A.R. should
continue to provide training opportunities and materials for brokers,
agents and trainers.
--The Task Force recommends that the eight guidelines informally used by
the Standard FormsAdvisory Committee when considering or developing new
forms be adopted as a standard checklist or worksheet for forms
--Requests for new or revised forms may be an early indicator of changes in
the marketplace. Standard Forms and Governmental Affairs should coordinate
closely to identify needed changes in law or practice.
--C.A.R. should continue to strive to be the single source for
transactional forms and not send members to secondary sources.
--REALTOR® members do not have too many forms so much as they have too many
choices in forms. C.A.R. should provide more guidance and education as to
which form or series of forms to select.
--Detailed checklists of actions to be taken by licensees in transactions
havethe potential downside of changing the legal standard of care. Creating
additional transactional activity checklists should be avoided.
--The Task Force endorses the conclusion of the Foreign Language Task Force
to concentrate on English language forms. C.A.R. should oppose any
attempted mandates to translate additional forms. The Task Force
supports continued availability of multilingual education, consumer and
training, materials.Additional Recommendations:
--C.A.R. should continue to pursue development of RelayTM as the
centerpiece of a seamless software "suite" that integrates WINForms® and
Real Estate Forms Advisor as a member benefit.
--The next generation of the suite should include locally required
(city,county or special district) forms or disclosures. The suite should
provide a simplified process to add broker and local association
--The WINForms® catalog should provide a link within each form to the
relevant legal article (Q&A) on C.A.R.'s website, and to the
explanatory paragraph in the electronic guide to standard forms (Forms
--The C.A.R. Legal Department should prepare recommended WINForms®
libraries of forms in their chronological order of use specific to common
sorts of transactions. This series or "library" of forms should be
accompanied by the links to information discussed above and should
anticipate the same approach in the Forms Advisor software.
--C.A.R.should provide agents with content for their own websites with the
goal of educating the public about the transactional process. The material
should be available to REALTORS® through the C.A.R. website to link to or
download.Forms that should be considered for consolidation include:
--The Statewide Buyer and Seller Advisory (SBSA) should be combined with
the Seller's Advisory (SA) and the Buyer's Inspection Advisory (BIA).
--The Seller Property Questionnaire (SPQ) and the Supplemental Statutory
and Contractual Disclosure form (SSD) should be combined.
--The Buyer Non-Agency (BNA) and Seller Non-Agency (SNA) forms should be
--The Smoke Detector Statement of Compliance (SDS) and Water Heater
Statement of Compliance (WHS) should be combined.
--The Database Disclosure Form (DBD) should be eliminated.
--The Release of Contract (RC) form, having been supplanted by the
Cancellation of Contract (CC) form, should be eliminated.
Strategic Planning & Finance 1. That the
Statement of Income and Expenses by program for the eleven months ending
November 30, 2006 be approved.
Revenue of $32,990,800
Expenses of $23,018,000
An excess of income over expenses of $9,972,800
Political Activities Fund
An excess of income over expenses of $1,240,300
Issues Action Fund
An excess of income over expenses of $1,205,700
The C.A.R. Balance Sheet as of November 30, 2006
Total assets of $45,481,700 (of which $31,898,300 are current assets)
Total liabilities of $4,126,800 (of which $3,889,400 are current
C.A.R. Fund Balance of $41,354,900
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2006 be approved.
Revenue of $33,165,800
Expenses of $26,737,200
An excess of income over expenses of $6,428,600
Political Activities Fund
An excess of income over expenses of $1,087,400
Issues Action Fund
An excess of income over expenses of $1,121,300.
This amount will be allocated to IMPAC as approved by the Directors.
3. To approve an augmentation to the 2007 capital budget in the amount of
$270,000 to replace the ceilings on the 2nd, 3rd and 4th floors of the
C.A.R. headquarters building in Los Angeles.
4. To approve up to $550,000 for implementation of a comprehensive redesign
and infrastructure upgrade of C.A.R.'s primary Web site CAR.ORG, and other
subsidiary Web sites.
5. To approve $24,000 for C.A.R.'s share of the Single Sign On
6. To approve $228,400 for the REALTOR® Value Proposition Proactive Media
Campaign. The purpose of the campaign is to address negative images of
REALTORS® in the media by developingand implementing a public relations
initiative that will demonstrate the REALTOR® value proposition to
consumers. The campaign will consist of educating the public about the
benefits of using a REALTOR® when buying or selling a home, and
demonstrating that REALTORS® are qualified professionals who bring a
tremendous amount of value and expertise to the real estate transaction;
communicating with C.A.R. members on how they can demonstrate their value
to potential customers, and how C.A.R. issupporting their interests.
1. That C.A.R., in conjunction with NAR, support income tax-based
incentives for employer-assisted housing as part of a housing affordability
2. It was reported for information only that the Taxation Committee
recommended that the President of C.A.R. appoint a task force to research
the issue of property tax basis portability, and report to the board in