CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
OCTOBER 9 - 10, 2009
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October 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.
1. To approve the selection of Jeannette Way, Northern Solano County, as
the recipient of the 2009 California Distinguished REALTOR® Award, the
highest recognition that C.A.R. can bestow on a member.
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 $13,000. The C.A.R.
Education Foundation awarded grants totaling $4,334.
California REALTOR® EXPO Advisory 1. It was reported
for information only that the CALIFORNIA REALTOR® EXPO 2009 was a
tremendous success. Attendance for Tech Tuesday was 900. The
Exhibit Hall included 150 exhibit booths, and there were 13 generous
sponsoring companies. Overall attendance was 6,113.
1. That the following nominees for CALMLS Directors be elected.
Category 1 (from the ten largest brokers)
John Schulte (Tarbell) (1 year term)
Rick Hoffman (Coldwell Banker) (1 year term)
Mark Johnson (Prudential) (1 year term)
Category 2 (broker owner with less than 100 agents)
Tom Carnahan (2 year term) Southland Regional AOR
Chris Kutzkey (3 year term) Siskiyou AOR
Category 3 (broker owner, any size firm)
Mike Collins (2 year term) South Bay AOR
Dorothy Jackson (3 year term) Bay East AOR
Category 4 (agent or broker associate)
Beverly James (2 year term) San Luis Obispo AOR
Jeanne Radsick (3 year term) Bakersfield AOR
Category 5 (broker or agent, any size firm)
Mike Teer (2 year term) Inland Valley AOR
Geoff McIntosh (3 year term) Pacific West AOR
Category 6 (open category)
Ken Neufeld (2 year term) Fresno AOR
Ted Loring (3 year term) Humboldt AOR
1. That the CREPAC Bylaws Amendment be approved as noticed.
2. That the following Nominees for CREPAC Trustee and Alternate be elected.
NOMINEES FOR CREPAC TRUSTEE
(November 2009 - November 2012)
Dennis Mason, Region 2
Jared Martin, Region 12
Irma Vargas, Region 17
Mary Funk, Region 18
Nancy Gilmore, Region 23
NOMINEES FOR CREPAC ALTERNATE
(November 2009 - November 2010)
Leigh Rutledge, Region 3
Steve Reiser, Region 5
Gene Lentz, Region 9
Carol Facciponti, Region 16
Greg Pawlik, Region 17
Greg Haas, Region 19
Mark Marchand, Region 30
Jmaes Irving, Region 31
Cas Pinkowski, Region 32
Housing Affordability Fund 1. It was reported for
information only that the Housing Affordability Fund will extend the date
of the C.A.R. Housing Affordability Fund Mortgage Protection Program
through December 31, 2010 or until allocated funds have been expended.
1. That the IMPAC Bylaws Amendment be approved as noticed.
2. That the following Nominees for IMPAC Trustee and Alternate be elected.
NOMINEES FOR IMPAC TRUSTEE
(November 2009- November 2012)
Cynthia Wood, Region 4
Leannah Hunt, Region 9
Les Fishman, Region 21
Michael Mercurio, Region 24
Nancy Hunt, Region 32
NOMINEES FOR IMPAC ALTERNATE
(November 2009 - November 2010)
Anita Thede, Region 6
Lisa Muetterties, Region 7
Sandra Haney, Region 10
Lynn Heintz, Region 12
Patricia Douglas, Region 17
Carl San Miguel, Region 19
Erik Weichelt, Region 24
3. It was reported for information only that IMPAC authorized the following
--$15,000 to the No on Measure B campaign to oppose a local ballot box
planning measure in the City of Santa Barbara.
--$7,500 to the C.A.R. Association Executive (AE) Institute for the purpose
of funding a portion of a three-day professional development program
devoted to Governmental Affairs topics to include association management,
strategic planning, IMPAC and BORPAC processes and utilization.
--Up to $160,000 to pay for legal experts for the analysis of local
government ordinance proposals on behalf of local Associations subject to
the condition that each local association pay at least 25% of the cost of
their request using Local IMPAC funds.
--$32,860 to fund a C.A.R. outreach program to address the impacts of state
and local budget shortfalls on real estate and the C.A.R. resources
available to local REALTORS® address these issues.
Legal Action Fund
1. It was reported for information only that since the June meetings the
Legal Action Fund Trustees approved an amicus on one case:
Harrison v. Sierra Dawn HOA. Isabelle Harrison, owned 22 mobile homes
in Sierra Dawn Estates, large common-interest development for mobile homes
for persons 55 and over. Ms. Harrison lived in one of the mobile homes, and
rented the remaining homes to tenants. The Sierra Dawn Homeowners
Association voted to change the covenants, conditions and restrictions
(CC&Rs) to prohibit any one owner from leasing more than 3 homes, as
well as imposing other restrictions, including that no more than 20% of the
total amount homes could be rented at any one time. The amended
CC&Rs exempted existing tenancies. Ms. Harrison filed a lawsuit against
the HOA on several grounds including restraints on alienation. The
HOA prevailed at trial and Ms. Harrison’s representatives appealed.
The trustees authorized an amicus brief supporting the plaintiff property
owner on the issue of HOA amendments that restrict the rights of an
existing homeowner to rent its properties.
Since the June meetings, there was a development in one case as follows:
Hovanesian v. Couveau. A buyer contracted to buy a residential
property owned by the Couveaus using the CAR RPA for $750,000. The
appraisal contingency had been checked. Five days later, an offer
came in for $859,000. The first buyer received an appraisal at
$720,000 and wrote a letter stating that they would only go forward with
the transaction at the appraised value and gave a deadline for a
reply. The sellers said they would not sell at the lowered price. The
sellers then countered to buyer #2 that they would accept the $859,000
subject to cancellation of the previous escrow. This offer was
accepted. Buyer number one said they received a new appraisal of
$750,000 and demanded that the transaction proceed at that price. Buyer
number 2 concluded the sale.
The court indicated that when a party exercises their right to cancel the
contract, the party no longer has the right to waive the right and proceed
with the agreement. The court further went on to acknowledge C.A.R.’s
Request for Repair form and indicated when parties proceed to draft their
own documents, it may have unintended consequences and that had the form
been used, the options and communication would have been more clear.
The decision is unpublished, however, and cannot be cited for authority.
There are four cases in which C.A.R. participated as amicus that are either
awaiting decision or have briefs due but there are no specific outcomes on
these cases to report.
1. That C.A.R. “SPONSOR” legislation to subject Appraisal Management
Companies (AMCs) to increased regulatory control by the Office of Real
Estate Appraisers, to be reviewed by the Transaction and Regulatory
Committee at the February 2010 meetings.
2. That C.A.R. “SPONSOR” legislation to require lenders to accept a
"portable" appraisal at the request of a borrower.
3. That C.A.R. “SUPPORT” legislation setting up a program to use electronic
scanning technology to scan title records for unconstitutional transfer
restrictions and redact the illegal restrictions in a way that does not add
prohibitive costs to the recording process.
4. That C.A.R. “SPONSOR” legislation to apply the so-called "poison pill"
of Business and Professions Code Section 10226.5 to loans from DRE to other
special fund accounts.
5. That C.A.R. “SPONSOR” legislation to redraft the existing "advance fee"
statute so that it more clearly captures the concept of receiving payment
before the services are performed.
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
California Desert AOR
Central Valley AOR
Jean Lee Boehm
Coastal Mendocino AOR
Contra Costa AOR
East San Diego County AOR
El Dorado County AOR
Inland Valleys AOR
Mary Louise Zuppardo
Lompoc Valley AOR
Gail Mc Cullough
Montebello District BOR
Monterey County AOR
Jo Ann Kenton
North San Diego County AOR
Northern Solano County AOR
Virgie L. Smith
Pacific West AOR
Palm Springs AOR
Palos Verdes Peninsula AOR
Paso Robles AOR
Placer County AOR
Rancho Southeast AOR
Rim O The World AOR
Robert Del Ponte
San Benito County AOR
San Diego AOR
San Luis Obispo
San Mateo County AOR
Jean Mac Donald
Santa Cruz AOR
Helen G. Ackerman
Frances G. Slebir
Lorraine D. Wallace
Santa Maria AOR
South Bay AOR
Southland Regional AOR
Tuolumne County AOR
Ventura County Coastal AOR
MLS/Computer and Business Technology
1. To make changes to the C.A.R. Model MLS Rules which reflect the
following policy decisions, such rules to be effective upon NAR
a. That, as a general rule, all reporting time frames not include an
exclusion for weekends and holidays;
b. That all time frames be stated in terms of calendar days instead of
hours (i.e. 2 days rather than 48 hours) with staff formulating a
definition for calendar days;
c. That the time frame for submission of listings be 2 days [existing rule
provides for 48 hours with exceptions for weekends and holidays];
d. That the time frame for a change of listing information, correcting
inaccurate information, listing status changes, reporting of sales,
cancellation of pending sale be 2 days [existing rules provide for 24 hours
with exceptions for weekends and holidays or 24 hours or “immediately” for
cancellation of pending sale];
e. That the time frame for documentation of a listing agreement upon demand
or of evidence of extension of listing be 1 day [existing rules provides
for 24 hours];
f. That the time frame after which a cooperating broker can contact the
seller directly after being unable to reach the listing broker be 1 day
[existing rule provides for 24 hours];
g. That the time frame for reporting of unaccountable lockbox key be
immediately upon discovery [existing rule states “immediately”];
h. That the time frame for reporting DRE discipline be 1 day [existing rule
states 24 hours];
i. That the time frame for attending orientation remain at 30 days.
1. That C.A.R., beginning with the 2011 dues billing cycle, implement a new
REALTOR® Action Fund collection mechanism, above the line with “opt-over”
provision. An issue briefing paper will be prepared to include
specific recommendations for the technical implementation, legal
requirements and dollar amount, which will be decided by the Board of
Directors at the February, 2010 meeting.
(Note: The “opt over” provision allows the member to determine
whether the investment amount shall be directed towards the REALTOR® Action
Fund or “moved-over” to an alternative account. In any event, the
amount would be paid by the member.)
1. That C.A.R. adopt a procedure, to be drafted by staff for the California
Code of Ethics and Arbitration Manual and Interboard Arbitration Rules, to
comply with California Code of Civil Procedure Section 1281.85, which
specifies that the right to arbitrator disclosures of specific information
is non-negotiable and non-waivable, even though that information is
confidential under NAR policy.
Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS
Board of Directors be approved, and the C.A.R. President be instructed to
elect these individuals on behalf of C.A.R.:
Matthew Borland, San Francisco, Zephyr Realty
David Cabot, San Diego, Prudential Realty
Jeannette Way, Vacaville, Gateway Realty
Note: The following REBS Directors have continuing terms through
Robert Bailey, Aptos, Bailey Properties
Annette Graw, Manhattan Beach, South Bay Brokers
Linda Lang, Laguna Hills, Orange County Association of REALTORS®
Rick Snyder, San Diego, R.A. Snyder Properties
Alan Arora, Los Angeles, Real Estate Business Services
Joel Singer, Los Angeles, California Association of REALTORS®
Real Estate Finance
1. That C.A.R., in conjunction with NAR, “SUPPORT” the elimination of the
FHA 90-day anti-flipping rule, and that C.A.R. write and publish a letter
to the FHA Commissioner in opposition to the FHA 90-day anti-flipping
2. That C.A.R., in conjunction with NAR, seek to eliminate the mandatory VA
pest certification and mandatory seller fees.
3. It was reported for information only that C.A.R. will prepare a Q&A
and advisory piece on FHA’s new Common Interest Development financing
REALTORS® Commercial Alliance Commercial
Investment 1. The Board of Directors defeated a motion that
the REALTORS® Commercial Alliance Commercial Investment Committee become
the REALTORS® Commercial Alliance Forum in 2010 and thereafter, and that it
be given meeting facilities equally convenient to all other Association
meetings and receive an appropriate level of staff support and funding to
carry out its role as a Forum. However, it was reported for
information only that Commercial Investment practitioners and others
interested in this specialty area would have the ongoing opportunity to
hold a forum at future C.A.R. Business Meetings.
Standard Forms Advisory Committee
1. It was reported for information only that the Standard Forms Advisory
Committee (SFAC) received reports from 7 Regional Representatives.
Generally comments commended the Standard Forms RPA Study Group for their
work so far on proposed revisions. The Commercial Forms Study group
will propose revisions to some of the C.A.R. commercial forms for the
SFAC’s consideration in February 2010. Additionally, the SFAC will
expect to receive a status update of the newly appointed Property
Management Study Group, which is expected to host their first conference
call in the coming months. The SFAC presented the latest draft of the
RPA at the Open Forum on Forms. The RPA Study Group has some
additional changes to the draft that was presented. The study group
will continue to review comments from both the membership and SFAC prior to
proposing a suggested final draft which will be made available prior to the
February 2010 Business Meetings. It is anticipated that the final
version will be released in April 2010. Finally, the SFAC reviewed
all of the approximately 80 comments received.
Strategic Planning & Finance 1. That the
Statement of Operating Income and Expenses by program for the eight months
ending August 31, 2009 be approved.
Revenue of $23,453,500
Expenses of $15,957,700
An excess of operating income over expenses of $7,495,800
Political Activities Fund
An excess of income over expenses of $2,074,000
Issues Action Fund
An excess of income over expenses of $1,155,600
The C.A.R. Balance Sheet as of August 31, 2009
Total assets of $64,823,100 (of which $47,728,500 are current assets)
Total liabilities of $3,559,500 (of which $2,966,400 are current
C.A.R. Fund Balance of $61,263,600
2. That the Projected Statement of Operating Income and Expenses by program
for the year ending December 31, 2009 be approved.
Revenue of $26,761,300
Expenses of $25,665,700
An excess of operating income over expenses of $1,095,600
Political Activities Fund
An excess of income over expenses of $2,090,900
Issues Action Fund
An excess of income over expenses of $651,400. This amount will be
allocated to IMPAC as approved by the Directors.
3. To approve a 2010-2012 Strategic plan and 2010 budget with the following
A. C.A.R. Revenue of $26,038,400
Net Operating Surplus
B. Political Activities Fund Revenue
C. Issues Action Fund Revenue $1,494,000
Issues Action Fund
Transfer to IMPAC $593,800
D. 120.5 budgeted C.A.R. staff positions
E. Membership dues, including $115 for operating
programs, $10 for the Political Activities Fund and $10 for the Issues
Action Fund, are set at a total of $135 per member (predicate on 2010 year
end membership of 162,000)
F. New member fee be set at $30 per new member
G. A 2010 Capital Budget (funded with Association
reserves) totaling $461,800
4. To approve for members in areas not serviced by local associations an
additional $30 in membership dues. This amount would be in excess of the
dues approved for members coming through the local associations.
5. That $188,000 be approved for an additional two percent pension
contribution to the C.A.R. and REBS employee pension plan for 2009,
augmenting the previously approved budget of 10 percent.
6. That up to $12,000 be allocated from the 2009 budget to conduct a survey
of magazine readership.