CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
521st SESSION
JANUARY 25 -- 26, 2008
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2008
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
please Contact
Us.
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 $7,000.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO
will take place October 14-16, 2008 in Long Beach, and the California
REALTOR® Showcase is scheduled for June 4-5 in Sacramento.
CREPAC Trustees
1. It was reported for information only that CREPAC contributed $254,000 to
bi-partisan candidates for the Assembly and Senate, aswell as to the
Democratic and Republican Parties.
2. It was reported for information only that the CREPAC Trustees
recommended to the REALTORS® Political Action Committee (RPAC) Trustees of
N.A.R. that they fund $59,000 for 14 federal candidates.
3. It was reported for information only that the CREPAC Trustees
transferred the 2008 Fair Share contribution of $900,000 to the National
RPAC.
Executive
1. To approve a special resolution of grateful appreciation to 2007
President Colleen Badagliacco.
2. To approve a special resolution of grateful appreciation to Sharon
Bowler, 2007 recipient of the California Distinguished REALTOR®
Award.
3. To approve the proposed amendments to the C.A.R. Bylaws.
4. That the following 2007 Presidential appointments be
approved:
2008 Executive Committee
William E. Brown, Bay East, President
Jim Liptak, Paso Robles, President-Elect
Beth Peerce, Southland Regional, Treasurer
Joel Singer, Los Angeles, Executive Vice President (Ex-Officio)
Colleen Badagliacco, Santa Clara County
Jeff Barnett, Silicon Valley
Dona Crowder, San Francisco
Barbara Delgleize, Orange County
Raymond Karpe, Bakersfield
Jim Link, Southland Regional, AE
Ted Loring, Humboldt County
Geoff McIntosh, Pacific West
Frank Oti, Inglewood
Edwin Resuello, Santa Clara County, RC
Heidi Rickerd-Rizzo, Marin County
Tracy Saizan, Sacramento
Michael Tessaro, Bay East
2008 Directors at Large
Ann Bracci, Alameda
Cynthia Carley, Rim 'O The World
Candice Carpenter, South Bay
Chris Crocker, Palos Verdes Peninsula
Jackie Crowley, Palos Verdes Peninsula
Leslie Dopp, West Contra Costa
Carol Facciponti, Citrus Valley
Les Fishman, Palos Verdes Peninsula
Bradley Garbutt, Shasta County
Melanie Hildebrand, San Mateo County
Chuck Hill, Paso Robles
James Irving, Paso Robles
Beverly James, San Luis Obispo
Tangie Leverett, Delta
Naeem Malik, Bay East
Roy Navarro, San Benito
Kathleen Oliver-Schultz, Watsonville
Lenny Sciacca, Tulare County
Theresa Wilson-Allen, Yosemite Gateway
John Wong, West San Gabriel Valley
C.A.R. Scholarship Foundation/C.A.R. Education Foundation (2008-2012)
Kurt Kenzie, North San Diego County
Beverly James, San Luis Obispo (filling the remaining 1 Year of a vacancy
in 2008)
Legal Action Fund Trustees (2008-2012)
Olga Moretti, Southland Regional
Wes Seastrom, Pasadena Foothills
Federal Issues
1. That C.A.R. believes that before NAR promulgates a policy on
immigration, or decides if they wish to have a policy on immigration, the
materials should be presented and voted on by the appropriate NAR
committees and the Board of Directors.
Foreclosure/Troubled Mortgage Task Force
1. To accept the report of the Foreclosure/Troubled Mortgage Task Force.
Housing Opportunity
1. It was reported for
information only that the Housing Opportunity Committee, following
extensive discussion of the "Affordable Housing Definition IBP" during its
January 23 meeting, decided to exercise the option of creating a 2008
Working Group to further evaluate the issue of establishing a C.A.R.
definition of "Affordable Housing." This Working Group will consist
of up to 11 Members of the Housing Opportunity Committee as well as 2-3
Invited Guests from each of the following:
--Legislative Committee
--Taxation Committee
--Housing Affordability Fund
Additionally, other Guests may be invited, as determined by the HOC
Leadership, in order to take advantage of all potential affirmative
contributors to this discussion. The mission of the Working Group
will be to fully "vet" the concept of "affordable housing" in the REALTOR®
environment and encompass in the discussions and final report how "home
ownership," the ultimate focus of all REALTORS®, fits within, or is, in
fact, the over-arching factor that must be the guiding principle for
C.A.R.'s affordable housing discussions, positions, and policies.
IMPAC Trustees
1. It was reported for information
only that IMPAC authorized the following contributions:
--$20,000 to the Civil Justice Association of California for annual
membership dues
--$17,500 to the Pacific Legal Foundation's litigation program in defense
of private property rights
Legal Action Fund
1. It was reported for information only that the trustees approved the
following cases for amicus briefs since the last meeting:
Page Mill Properties v. Luzon. The trustees approved an amicus brief on the issue of whether a real estate broker, after termination of theagency relationship, may compete with a former principal for the acquisition of real estate identified by the former principal during the agency. The case included the issue of whether a real estate broker has a continuing fiduciary duty to a principal after termination of an agency relationship. Further, the case explored the issue of whether a real estate investor's acquisition plan for some or many properties is a trade secret and therefore precluded the firm from representing any buyers in the area. The case was settled before it reached conclusion.
Brand v. George Chung Realty. This case involved the issue of whether, in the absence of actual knowledge of how a specific property was affected by a disclosed general condition (freeway expansion), a listing broker had a duty to a buyer to make an inquiry of a government agency responsible for carrying out the general condition and determining the specifics of the potential expansion.
Malone v. Re/Max Gold Real Estate. The trustees approved a brief on the issue of whether a broker representing a buyer has a duty to the spouse and children of the broker's buyer client in addition to the duty the broker has to the client represented in the transaction.
Updates on cases in which C.A.R. participated as amicus:
Schaffter v. Creative Capital Leasing Group. This case involves the rights of a broker to commissions under a buyer broker agreement after a seller and buyer cancel their agreements once the buyer failed to close escrow. After a series of delays due to changes in counsel, the defendant buyer has filed bankruptcy so the matter will be handled by the bankruptcy court.
Schweitzer v. Westminster Investments, et.al. A court of Appeal issued a very favorable decision in December that found the bond requirement of the Home Equity Sales Contract Act unconstitutional. We have just gotten word that the party has given notice of a petition to the California Supreme Court. We should know within 60 days whether or not the California Supreme Court will accept a hearing and if it does, then the matter will be pending until the Court rules.
Legislative
1. That C.A.R. "OPPOSE" SB 926, Perata, which imposes new restrictions on
the foreclosure process.
2. That C.A.R. take the following positions on February (94, 95, 96, 97)
and June 2008 California Statewide Ballot Measures:
Proposition 94 -- Referendum Petition to Overturn Amendment to Indian
Gaming Compact -- "NOT REAL ESTATE RELATED"
Proposition 95 -- Referendum Petition to Overturn Amendment to Indian
Gaming Compact -- "NOT REAL ESTATE RELATED"
Proposition 96 -- Referendum Petition to Overturn Amendment to Indian
Gaming Compact -- "NOT REAL ESTATE RELATED"
Proposition 97 -- Referendum Petition to Overturn Amendment to Indian
Gaming Compact -- "NOT REAL ESTATE RELATED"
Proposition Number Pending: Jarvis Initiative -- California Property Owners
and Farmland Protection Act: Government Acquisition, Regulation of Private
Property -- "FOR"
Proposition Number Pending: League of California Cities Initiative
Homeowners and Private Property Protection Act; Acquisition of Owner
Occupied Residence -- "AGAINST"
Note: C.A.R. has previously taken the following positions on February (91,
92, 93) and November 2008 Ballot Measures:
Proposition 91: Transportation Funding. Initiative Constitutional Amendment
and Statute. -- "NEUTRAL"
Proposition 92: Community Colleges. Funding. Governance. Fees. -- "NOT REAL
ESTATE RELATED"
Proposition 93: Limits on Legislators' Terms in Office. Initiative
Constitutional Amendment. -- "NOT REAL ESTATE RELATED"
Proposition Number Pending: Safe, Reliable High-Speed Passenger Train Bond
Act for the 21st Century. -- "NOT REAL ESTATE RELATED"
3. That C.A.R. "SUPPORT" legislation conforming California law to federal law which for three years treats the forgiveness of indebtedness as non-income for tax purposes.
Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
status:
Arcadia AOR
Richard St. Julien
Bakersfield AOR
Melvin Khachigian
Helen Patterson
California Desert AOR
Nancy Moller
Citrus Valley AOR
Patricia Bumstead
Joan O'Rourke
Conejo Valley AOR
Edna Murphy
Helen Taft
Contra CostaAOR
Sue Smeaton
East Valley AOR
Betty Karst
Hetch Hetchy AOR
David Lint
Inland Valleys AOR
Helen Galvan
Laguna BOR
Chris Alexander
Malibu AOR
Anthony Giordano
Dotty Jean Giordano
Frederic Niles
Monterey AOR
Carrol Patterson
Carla Belgrano-Ramsey
Nevada AOR
Bob Nix
Newport Beach AOR
Joann Akerman
Richard Browne
North San Diego AOR
Robert Hansford
Orange County AOR
Eileen Frances Pawlowski
Pacific West AOR
Elaine Euscher
Jean Melcosky
Steve Melcosky
Adolph Palma
Palm Springs AOR
Lois Carter
Joyce Chapman
Louis Perlin
Marilyn Perlin
Paradise AOR
Bob Bell
Pasadena-Foothills AOR
Barbara Ann Lopez
Georgene Neely
Elizabeth Squire
Sacramento AOR
Juanita Becker
Alice Benton
Patricia Choate
Jack Cleek
Shirley Curtis
Barbara Frago
Perry Georgallis
Ronald Kramnic
Melvin Lang
Connie Leverton-Harvey
Bert MacBride
William MacLaughlin
Nellie Margarite
Donald Mattos
Clara Olsen
Lew Ritz
Pam Robertson
Bernice Rodness
Helen Sims
Ray Stone
Margaret Van Andel
Johnnie Wilhite
Roche Zefo
Geoff Zimmerman
San Luis Obispo AOR
Peggy Payne
SanMateo County AOR
George Tell
Santa Clara County AOR
Manuel Perry
Santa Maria AOR
Eloise Ruiz
Shasta AOR
Ellen Riley
Silicon AOR
John Bartlett
Rita Boren
Terry Keating
Willis Ritter
Gregory Vistica
Earl Williams
Southland Regional AOR
Ruth Brennan
Rebecca Guthrie
Joanne Kellogg
Elaine Schram
Southwest Riverside County AOR
A.E. Berkheimer
Tri-Counties AOR
Paul Lim
Tulare County AOR
Janet Carr
Ventura County Coastal AOR
Anne Geib
Manuel Hernandez
Jim Higgins
Christine Johnson
Rudy Dallenbach
Lois Mitchell
West San Gabriel Valley AOR
Lorene Hjertstedt
MLS/Computer & Business Technology
1. That, subject to NAR approval, C.A.R. Model MLS Rule 10.1 be amended as
set forth in underline and strikeout below:
10.1 Reporting of Sales. Listings with accepted offers
shall be reported to the MLS or input into the MLS database as "pending"
within 24 hours of the acceptance by the listing broker unless the
negotiations were carried on under Section 9.1 (a) or (b), in which case,
the cooperating broker shall notify the listing broker of the "pending"
status within XX hours after acceptance, whereby the listing broker shall
then report or input the status change to the MLS within XX hours of
receiving notice from the cooperating broker. report to the MLS or
input the listing in the MLS as "pending" and send a copy of the listing's
changed status to the listing broker within 24 hours after
acceptance. The listing shall be published on the MLS as
pending with no price or terms prior to the final closing. Upon final
closing, the listing broker shall report or input the listing in the MLS as
"sold" and report the selling price within 24 hours of the final closing
date unless the negotiations were carried on under Section 9.1 (a) or (b),
in which case, the cooperating broker shall notify the listing broker of
the "sold" status and selling price within XX hours after the final closing
date, whereby the listing broker shall then report or input the status
change and selling price to the MLS within XX hours of receiving notice
from the cooperating broker. Listings which were not input into the
MLS as a result of the seller's instructions may be input into the MLS
"sold" data at the listing broker's option.
2. That, subject to NAR approval, C.A.R. Model MLS Rule 10.2 be added
or amended as set forth in underline and strikeout below:
10.2 Removal of Listings for Refusal/Failure to Timely Report Status
Changes. The MLS is authorized to remove any listing from the MLS
compilation of currentlistings where the participant or subscriber has
refused or failed to timely report status changes. Prior to the removal of
any listing from the MLS, the participant and/or subscriber shall be
advised of the intended removal so the participant and/or subscriber can
advise his or her client(s).
[Note: If passed, the current 10.2 and 10.3 will be re-numbered to 10.3 and
10.4 to make room for the above new rule within Section 10 on "Reporting
Sales and Other Information to the Service."]
3. That, subject to NAR approval, C.A.R. Model MLS Rules 12.10, 12.19
and 12.20 be added or amended as set forth in underline and strikeout
below:
12.10 False or Misleading Advertising and Representations; True
Picture Standard of Conduct. Participants and subscribers may not
engage in false or misleading advertising, including, but not limited to,
advertisements or representations regarding the participant's or
subscriber's relationship to the service, about theservice itself, or about
any property listed with the service. MLS participants and
subscribers shall present a true picture in their advertising and
representations to the public, including the URLs and domain names they
use, and participants and subscribers may not:
(a) engage in deceptive or
unauthorized framing of real estate brokerage websites;
(b) manipulate (e.g.,
presenting content developed by others) listing content in any way that
produces a deceptive or misleading result; or
(c) deceptively use metatags, keywords or other
devices/methods to direct, drive, or divert Internet traffic, or to
otherwise mislead consumers.
-------------------------
12.19 Website Name and Status Disclosure. MLS participants'
firm websites shall disclose the firm's name and state(s) of licensure in a
reasonable and readily apparent manner. Websites of subscribers
affiliated with a participant's firm shall disclose the firm's name and the
subscriber's state(s) of licensure in a reasonable and readily apparent
manner.
12.20 Use of the Terms MLS and Multiple Listing Service. No MLS
participant or subscriber shall, through the name of their firm, their
URLs, their e-mail addresses, their website addresses, or in any other way
represent, suggest, or imply that the individual or firm is an MLS, or that
they operate an MLS. Participants and subscribers shall not represent,
suggest, or imply that consumers or others have direct access to MLS
databases, or that consumers or others are able to search MLS databases
available only to participants and subscribers. This does not prohibit
participants and subscribers from representing that any information they
are authorized under MLS rules to provide to clients or customers is
available on their websites or otherwise.
MLS Working Group
1. That the recommendations of the four work groups (AE, Data Standards,
Rules and Governance) be adopted and recommended to the H-MLS entity except
that:
a. further discussion be obtained from the directors with respect to item
(1.x.(1)) relating to including sold data in IDX feeds.
b. That the three largest broker directors be changed to three from the
largest ten brokers.
2. That the H-MLS entity be formed per the outline from the MLS Governance
Work Group except that ownership and control shall be vested with
C.A.R. The controlfunctions outlined in section 4 (dual
membership vote) shall be exercised by the Presidents of participating AORs
and Regional MLSs, as long as they are C.A.R. directors. The
Presidents shall cast both entity and weighted votes on behalf of their
associations. C.A.R. would retain ultimate control as required by the
corporate code.
3. That the H-MLS entity be funded with the balance of the $500,000
previously authorized (estimated to be about $475,000).
4. That the initial directors be chosen as follows:
a. There will be an open nominating process whereby any participating
entity may submit names. Self nomination is also allowed.
b Obviously no AORs or MLSs have opted to be part of this at the
outset. AOR or regional MLS must complete a form similar to the
one distributed in October stating an intent to participate. A
person vying for a slot would have to be from one of the AORs or MLSs
making such a declaration.
c. The deadline for nominations wouldbe March 1st.
d. An H-MLS Nominating Committee will be selected by the C.A.R. Officers to
vet the nominees.
e. The initial board will be selected and appointed by the C.A.R. Officers
and reported to the full C.A.R. Board of Directors in June.
Mortgage Loan Broker License Task Force
1. A motion was defeated that C.A.R. not oppose less comprehensive
specialty enforcement and regulation targeting mortgage abuses.
Real Estate Finance
1. That C.A.R., in conjunction with NAR, modify its existing policy on
risk-based pricing for the FHA mortgage insurance programs so it:
--Does not disadvantage the market FHA was designed to serve,
--Does not rely solely on FICO scores but considers compensating factors;
including, but not limited torental, cellular phone, utility, insurance
premiums and medical payment history,
--Does not mandate a specific down payment for purchase borrowers, but
instead adjust pricing based on down payment and loan-to-value ratio,
and
--Does not use riskbased pricing models to qualify borrowers.
2. That C.A.R., in conjunction with NAR, support the development and
preservation of affordable housing through the creation of a National
Affordable Housing Trust Fund that does not take money away from other
federal, state and local housing programs; and oppose any Trust Fund whose
sources of funding negatively impact housing prices, transaction fees or
loan costs.
3. That C.A.R., in conjunction with NAR, accept the end of federal
subsidies for non-primaryresidences that were built pre-Flood Insurance
Rate Maps (FIRM) and are required to have flood insurance; but, the program
must provide comprehensive coverage for second homes, vacation homes and
rental properties.
4. That C.A.R., in conjunction with NAR, support allowing the National
Flood Insurance program to offer coverage for wind.
5. That C.A.R., in conjunction with NAR, increase the REALTORS® presence on
Capitol Hill while congress is debating the issue of subprime and mortgage
reform. This would include utilizing NAR's and C.A.R.'s existing
policy to advocate for or against individual provisions within subprime and
mortgage reform bills.
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory
Committee received reports from 12 Regional Representatives. The
reports included recommendations regarding creating a septic, well and
boundary line addendum and making modifications to the protection clause
within the listing agreement. The Committee directed staff to create
a draft addressing septic, well and boundary issues and the Committee will
discuss the listing agreement recommendation on an upcoming conference
call. The Committee also received input fromthe Common Interest
Development Committee Chair and Vice-Chair to consider changes to the Home
Owner Association Information Request (HOA) form. The Committee will
await a formal recommendation from the Common Interest Development
Committee and discuss the proposal in an upcoming conference call.
The Committee approved revisions to the Cancellation of Listing (COL) and
the Purchase Agreement Addendum (PAA) forms. The Committee also
approved the creation of a new form titled "TrustAdvisory" (TA) with some
modification. The Committee tasked staff to explore the feasibility
of creating a standardized REO purchase agreement in collaboration with
representatives from the lending community and report back.
Additionally, the Committee instructed staff to create an REO advisory
form. The Commercial Forms study group is scheduled to have their
first meeting on February 8th. The Standard Forms Advisory
Committee/WINForms joint study group will coordinate a datefor their first
meeting. The Standard Forms Advisory Committee recommended to
Leadership that a RPA Study Group be established. Finally, the
Committee reviewed 4 of the 60 comments received and will review the
balance of the comments within an upcoming conference call.
Strategic Planning & Finance
1. To approve an augmentation of up to $50,000 for research on enhancements
to the California Living Network (CLN) and also explore the possibility of
hyper-linking/partnering with the forthcoming NAR consumer website.
2. That the Statement of Income and Expenses by program for the eleven
months ending November 30, 2007 be approved.
Total C.A.R.
Revenue of $32,968,700
Expenses of $ 24,291,200
An excess of income over expenses of $8,677,500
Political Activities Fund
An excess of income over expenses of $1,486,400
Issues Action Fund
An excess of income over expenses of $1,219,100
The C.A.R. Balance Sheet as of November 30, 2007
Total assets of $54,701,100 (of which $37,257,600 are current assets)
Total liabilities of $4,173,100 (of which $4,011,900 are current
liabilities)
C.A.R. Fund Balance of $50,528,000
3. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2007 be approved.
Total C.A.R.
Revenue of $33,448,200
Expenses of $27,743,400
An excess of income over expenses of $5,704,800
Political Activities Fund
An excess of income over expenses of $1,367,600
Issues Action Fund
An excess of income over expenses of $1,140,400. This amount will be
allocated to IMPAC as approved by the Directors.
Taxation
1. That the President form a Task Force to explore alternatives using
mechanisms such as Mello-Roos to deal with the problems associated with
private transfer taxes.
