CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 23 - 24, 2009
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2009
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.
CALIFORNIA REALTOR® EXPO
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO
will be held October 6 - 8, 2009 at the San Jose Convention Center, and the
CALIFORNIA REALTOR® SHOWCASE will be held June 3 - 4, 2009 at the
Sacramento Community Convention Center.
C.A.R. Scholarship Foundation/C.A.R. Education
Foundation 1. It was reported for information only that the
C.A.R. Scholarship Foundation granted awards totaling $23,000. The
C.A.R. Education Foundation announced the availability of its first
application for awards beginning in February 2009, with awards to be
determined at the next meeting in June 2009.
1. It was reported for information only that the CREPAC Trustees have
transferred the 2009 Fair Share contribution of $690,000 to the National
1. That the following 2009 Presidential Appointments be approved:
2009 Executive Committee:
James Liptak, Paso Robles, President
Steve Goddard, President-Elect, South Bay
Beth L. Peerce, Treasurer, Southland Regional
Joel Singer, Executive Vice President, Los Angeles (Ex-Officio)
William E. Brown, Bay East
David Cabot, San Diego (Regional Chair)
Linda Carroll, North Bay
Mary Funk, Southland Regional
Mike Godfrey, Bay East
Patricia Bouie-Hinds, Oakland
Jim Myrick, Santa Clara County
Andy Nazaroff, Fresno
Barbara J. Palmer, Santa Cruz
Leigh Rutledge, Sacramento
Emily Schwartz, Citrus Valley (Association Executive)
Rick Violett, Pacific West
Jeffrey Wright, West Contra Costa
2009 Directors at Large:
Arlene Baxter, Berkeley
Kim Boda, Big Bear
Jackie Crowley, Palos Verdes Peninsula
Les Fishman, Palos Verdes Peninsula
Miguel Garcia, Montebello District
Donald J. Grubb, Jr., Oakland
Lynn Heintz, Fresno
Tracy Helard-Shumard, Humboldt County
Janene Klocek, East Valley
Carol Luckenbach, San Francisco
Josie Marie Grant, Inglewood
Leslie McBride, Sutter Yuba
Stephen Pearson, Watsonville
Heather Raphael, Pacific West
Staci Siddhadas, Santa Barbara
Bill Stoll, Paso Robles
Scott Swendiman, Shasta
Theresa Wilson-Allen, Yosemite Gateway
Suzanne Yost, Santa Cruz
2. To adopt a Resolution of Grateful Appreciation in honor of 2008
President William E. Brown.
3. To adopt a Resolution of Grateful Appreciation in honor of Leslie
Munger, recipient of the 2008 California Distinguished REALTOR® Award.
1. It was reported for information only that C.A.R. recognizes the need for
healthcare reform and the substantial calls for change coming from numerous
sectors of society. While REALTORS® are not experts on all aspects of
healthcare reform, it is appropriate for REALTORS® to be involved in the
issue as it impacts REALTORS® cost of business and quality of life.
Additionally, rising healthcare costs can limit a person’s ability to be
able to afford both health insurance and the American dream of
homeownership. Furthermore, a recent NAR study found that concerns
with health insurance and healthcare were among the top domestic policy
concerns for REALTORS®.
C.A.R. believes that NAR should support healthcare reform which includes
-- Healthcare insurance reform should continue to be a hybrid of the
private and public sector. There should be the creation of new
programs and policies, but the private market should not be restricted or
-- Health insurance should be made available, affordable, and portable for
all; including premium stability and available options. Insurance
should cover pre-existing conditions and be continuous.
-- There should be an individual mandate for health insurance. The
individual mandate must include incentives to assist those unable to afford
insurance as well as disincentives for those who fail to participate.
This includes both the expansion of current programs and financial
-- There is the need for financial incentives for small business owners and
the self-employed in order to assist them in gaining access to affordable
-- There should be support for a Federal Healthcare Board that would
function similar to the Federal Reserve and set minimum mandates, set
minimum standards such as preventative health and long-term care, and allow
medical providers to offer appropriate care. The Federal Healthcare
Board would be independent, but still accountable to elected officials and
the American people. The Federal Healthcare Board would be staffed by
experts in the healthcare and medical field and establish guidelines that
programs can follow.
-- Health insurance should come in clear and transparent language
concerning what services are covered and how they are covered.
-- There should be the creation of a secure IT database for medical
providers that protects patient’s privacy and helps reduce administrative
costs. The database needs to be in a universal programming code so
that all providers are able to access and update the records when
-- There should be efforts made to help recruit and retain more healthcare
providers, particularly doctors and nurses.
1. That C.A.R. “OPPOSE” SB 49 unless amended to apply the proposed tax
credit to all sales of single family residences intended to be the
principal residence of the purchaser, and if so amended, will remove its
Legal Action Fund Trustees
1. It was reported for information only that since the October 2008
meeting, the trustees reviewed and approved the following cases:
Hovaneisan v. Couveau
A prospective buyer entered into a contract to purchase property. The
contract had an appraisal contingency. During escrow, the buyer
indicated the appraisal was lower than the purchase price and informed the
seller the transaction would not close if the seller did not reduce his
price. The seller cancelled the sale and sold it to another person
for over $100,000 more than the first buyer’s purchase price. The
second escrow closed and the first buyer sued and lost. The Trustees
approved a brief on the issue of whether the communication about the
contingency was actually a cancellation of the contract.
Kazanjian and Rodeo Investors v. Bapna
Bapna, a non-licensee met with this friend, Kazanjian and introduced him to
a potential buyer for a commercial property on Rodeo Drive. The
non-licensee also asked for financial statements, sat in on negotiations,
presented an offer, analyzed the pricing of the property and the market,
actively tried to convince the buyer to pay the full asking price,
transmitted a counter offer, and conveyed details of terms, among other
things. There was also a licensed broker involved and the commission
agreement with the broker allowed for the payment of a finder’s fee to
Bapna for $175,000. Bapna sued to collect the finder’s fee of
$375,000 from the seller, his friend. The jury awarded the finder’s
fee of $375,000 plus attorneys fees of $140,000 to the non-licensee.
The seller appealed. The Trustees approved an amicus brief in
support of the seller on the issue of whether a non-licensee can collect a
fee for activity that involves much more than a mere introduction of
parties in a commercial transaction.
Robinson v. Greenwood
The owners of a 6-unit apartment building had been notified by the city of
the need for repairs. The property was sold with a provision that the
city must issue a release/letter that the repairs would be completed.
The city issued such a letter before close and the buyer also conducted
inspections of the property. Three years later, tenants complained to
the city which issued a notice to vacate in 2006. The tenants also
sued the buyers (now the owners). The buyers cross-complained against
the seller. The trial court ruled in favor of the broker citing the
lack of reliance on the broker because the buyers had inspected the
property and the city had cleared the property before escrow; the buyer
appealed. The trustees approved an amicus brief on the
issue of whether claims against the broker fail due to lack of reliance
when the buyer had an unfettered right to inspect the property, the buyer
did inspect the property, and the buyer was aware of defective conditions
of the property before close of escrow.
Updates on cases in which C.A.R. participated as amicus:
UAS Management Inc., v. Mater Misericordiae Hospital et al.
This was an antitrust case unrelated to real estate but which cited the
Palsson decision for the proposition that the antitrust laws required
opening of the MLS not only to nonmember brokers but also to members of the
public. In response to C.A.R.’s request, the court removed the words
“members of the public” in the published decision.
County of Humboldt v. McKee et al.
This issue relates to the renewal of a Williamson Act parcel and whether
new changes to the County requirements enacted after the Williamson Act
contract was signed automatically are incorporated into that contract which
automatically renewed per its terms. Although the Trustees
supported an amicus letter on behalf of the property owner who is seeking
review before the California Supreme Court, the Court did not grant a
Witt Home Ranch v. Sonoma County.
This case involves whether a subdivision that was created in 1915 that was
government approved and complied with then existing law, can be used to
subdivide property in 2005 even through the 1915 subdivision does not
comply with current subdivision requirements. Although the Trustees
approved an amicus brief supporting the petitioner to get a hearing before
the California Supreme Court, the Court did not grant a hearing.
Brand v. George Chung Realty.
The issue in this case was whether a broker had a duty to investigate the
extent of a proposed freeway expansion effecting the front yard of a buyer,
even though the fact that one was proposed was disclosed in the TDS.
In an unpublished opinion, the Court ruled against the broker on procedural
grounds unrelated to the issues briefed by C.A.R. Since it is
unpublished, it cannot be cited as authority.
1. That C.A.R. “SUPPORT” a DRE license endorsement implementing the federal
SAFE Act allowing loan origination by a real estate licensee.
The SAFE Act (the Secure and Fair Enforcement of loan origination Act)
requires state law regulating loan originators to include:
- Pre-license education
- Passage of an examination
- Annual maintenance of continuing education
- Effective regulation by the state licensing authority.
2. That C.A.R. take the following positions on ballot propositions that
will be placed on the next statewide ballot (proposition numbers pending):
State Lottery Revenues (SCA 12) - Not Real Estate Related
State Lottery Revenues (SCA 13) - Not Real Estate Related
Public funding Secretary of State candidates - Not Real Estate
State Lottery Revenues (AB 1654) - Not Real Estate Related
State Lottery Revenues (AB 1741) - Not Real Estate Related
3. It was reported for information only that the Legislative Committee
rejected a motion to sponsor legislation creating a "Shortclosure"
process. Instead, the Committee recommends that the C.A.R.
President's Distressed Property Advisory Group consider ways to expedite
short sales raised in the "Shortclosure" Issues Briefing Paper for the
January 21, 2009 Legislative Committee meeting.
4. It was reported for information only that the Legislative Committee
rejected a proposal to create an anniversary inspection and retrofit
program as an alternative to Point of Sale legislation. The committee
directed staff to maintain existing policy to oppose point of sale mandates
and continue to study the issue in a working group and bring further
options back at the June 2009 meeting.
5. It was reported for information only that the Legislative Committee
rejected a proposal to consider creating lender access to pre-foreclosure
properties, and directed staff to explore making the maintenance of REO
property provisions of SB 1137 (Perata) pre-emptive of local government
property maintenance ordinances.
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
Amador County AOR
California Desert AOR
Conejo Valley AOR
Inland Valleys AOR
Amanda Jane Reynolds
Nevada County AOR
North Bay AOR
Christina F Mc Bride
Orange County AOR
Mary Aileen Matheis
Pacific Southwest AOR
Pacific West AOR
Palm Springs AOR
Palos Verdes Peninsula AOR
Pasadena Foothills AOR
Santa Cruz AOR
Edna Lee Kelly
MLS/Computer and Business Technology
1. That, subject to NAR approval, the C.A.R. Model MLS Rules be revised to
adopt all required and discretionary terms of the NAR VOW rules and policy
per the DOJ vs NAR Final Settlement Order as set forth in the MLS Committee
Issues Briefing Paper posted online. The discretionary provisions
contained in the MLS Committee Issues Briefing Paper are summarized below:
A. Parity Provisions: [VOW rules contain a “parity mandate” which
provides that certain restrictions can only be imposed on VOW brokers as
long as the same restrictions are imposed on non-VOW brokers]
1. That both non-VOW and VOW rules prohibit display to consumers of (a)
expired, withdrawn, or pending (“under contract”) listings; (b)
compensation offered; (c) listing type; (d) personal seller
information; and (e) broker-only showing instructions. [12.15.2
2. That both non-VOW and VOW rules prohibit MLS content from being
altered but allow it to be augmented with additional permissible
information as long as the other source is clearly identified.
[12.15.1(a), 12.16(e) and 12.19.16]
3. That both non-VOW and VOW rules require placement of a disclaimer
i.e. “data deemed reliable but not guaranteed” on display of listing
data. [12.15.1(d) and 12.19.17]
4. That both non-VOW and VOW rules require that display of listings
(online and in all other mediums, i.e. client sheets, emails, etc.)
identify the name of the listing firm and the listing broker or agent
in a readily visible color, in a reasonably prominent location, and in
typeface not smaller than the median typeface used in the display of
listing data. [12.15.1(b) and 12.19.18]
5. That both non-VOW and VOW rules limit the number of listings that a
consumer may view in response to an inquiry. [12.15.1(c) and
B. Non-Parity Optional Rules: [These discretionary rules outline
permissible regulations that an MLS may impose on a VOW]
1. That VOW Registants’ passwords be required to be periodically
2. That VOWs be subjected to regulation regarding placement of
Participant’s logo and contact information to reduce risk of misleading
advertising and co-branding. [12.19.21]
3. That VOWs be required to identify the source of any listing
displayed that is not from the operative MLS. [12.19.22]
4. That listings displayed on a VOW from sources other than the
operative MLS be required to be searched separately from the operative
5. That VOW Operators/AVPs be required to execute a license agreement
with the MLS. [12.19.24]
6. That a listing broker be required to provide a copy of a Seller Opt
Out (where seller has requested listing or address of listing not to
appear on the Internet) to the MLS within 48 hours.
1. It was reported for information only that, in October 2008, the C.A.R.
Board of Directors Approved adoption of a procedure to allow local
associations to appoint an Ethics Advocate Subcommittee, whose members
would assist parties to a disciplinary complaint through the process, by
helping with paperwork and representing the party at the hearing, at the
option of the party, subject to final approval from NAR. NAR has
approved The Ethics Advocate program, and implementation documents are
being distributed to local associations now, so that California REALTORS®
can be the first in the nation to participate in such a program.
Public Policy Reorganization Task Force
1. To approve the report and recommendations of the Public Policy
Reorganization Task Force.
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory
Committee (SFAC) received reports from 10 Regional Representatives.
The SFAC approved the following forms for release in April:
-- Contract Paragraph Matrix (CPM)
-- Cash for Keys (CFK)
-- Qualified Substitute Declaration of Possession of Transferor’s Affidavit
of Nonforeign Status (QS)
-- Loan Broker-Sales Broker Disclosure (LSB)
-- Notice of Prospective Buyers/Transferees (NPB)
-- Notice of Identified Properties (NIP)
-- Confidentiality and Non-Disclosure Agreement (CND)
-- Bill of Sale (BOS)
-- Notary Acknowledgement (NA)
-- Commercial Confidentiality and Non-Disclosure Agreement (CML-CNDA)
-- Commercial Environmental Issues Addendum (CML-EIA)
-- Commercial Landlord’s Environmental Consent (CML-LEC)
-- Commercial Release Agreement (CML-REL)
-- Commission Agreement (CA)
-- Cooperating Broker Compensation Agreement and Escrow Instructions
-- Contingency Removal (CR)
-- Independent Contractor Agreement (ICA)
-- Notice to Buyer to Perform (NBP)
-- Notice to Seller to Perform (NSP)
-- Residential Income Property Purchase Agreement and Joint Escrow
-- Request for Repairs (RR)
The SFAC also approved a time extension to the Commercial Forms Study Group
until the June business meetings to complete review of comments they have
received on existing C.A.R. commercial forms and provide further input
regarding the AIR library. The SFAC was advised about the possibility
of C.A.R. adopting the DRE sample advanced fee loan modification agreement
and approved the release as timely as possible. The SFAC was advised
about the possibility of C.A.R. creating a package of three forms to help
standardize documentation used with a short sale transaction and supports
C.A.R.’s efforts in this regard. The SFAC spent significant time
reviewing comments on the protection clause in the Residential Listing
Agreement (RLA) and decided to leave the form as it is currently
written. The Committee will continue to discuss and receive member
input on if/what changes should be made. The RPA Study Group held
their third meeting this week and will continue to review comments for
consideration. Finally, the SFAC reviewed 13 of the 52 comments
received. The balance of the comments will be reviewed on an upcoming
Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the eleven
months ending November 30, 2008 be approved.
Revenue of $27,269,400
Expenses of $22,919,200
An excess of income over expenses of $4,350,200
Political Activities Fund
An excess of income over expenses of $1,813,900
Issues Action Fund
An excess of income over expenses of $1,018,900
The C.A.R. Balance Sheet as of November 30, 2008
Total assets of $57,148,300 (of which $37,862,300 are current assets)
Total liabilities of $3,743,600 (of which $3,712,900 are current
C.A.R. Fund Balance of $53,404,700
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2008 be approved.
Revenue of $27,937,400
Expenses of $26,314,300
An excess of income over expenses of $1,623,100
Political Activities Fund
An excess of income over expenses of $1,763,200
Issues Action Fund
An excess of income over expenses of $841,800. This amount will be
allocated to IMPAC as approved by the Directors.
1. That C.A.R. “SUPPORT” the Property Tax: New Construction Exclusion:
Seismic Retrofitting. Legislative Constitutional Amendment.
(Proposition number pending)
2. It was reported for information only that C.A.R. would “SUPPORT”
legislation, if introduced, informing homeowners via their property tax
bill as to the tax benefit available under Propositions 60 and 90.
1. That C.A.R. grant CALMLS a line of credit of up to $3 million, to be
repaid to C.A.R. within 7 years fully amortized with 6% interest to be used
in accordance with the purposes outlined in the January 14, 2009 CALMLS
Issues Briefing Paper.