CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
528th SESSION
JUNE 11 - 12, 2010
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Spring 2010 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 5 - 7, 2010 at the AnaheimConvention Center. The theme is “Onward and Upward.” The CALIFORNIA REALTOR® SHOWCASE had over 600 participants at six informative seminars, and a sold out luncheon featuring the mid-year economic forecast.
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 $5,250. The C.A.R. Education Foundation granted awards totaling $6,675. Major contributions to the C.A.R. Scholarship Foundation were received from the Weis Trust, which donated $25,000 to establish the Caryl C. Weis Memorial Perpetual Scholarship Fund, and the South Bay Young Professionals Network Chapter, which initiated the South Bay Young Professionals Network Scholarship Fund with a donation of $4,111.
CALMLS/calREDD®
1. Approval of Proposed New Entity: That the C.A.R. board of directors approve that CALMLS (operating under the DBA calREDD®) enter into an agreement with MRMLS resulting in an entity (“New CALMLS”) to serve as the statewide MLS with the terms of such agreement to be consistent with the financial terms and bylaws structure as presented in the June 7, 2010, New CALMLS Issues Briefing Paper and subject to approval of final agreement by the C.A.R. Officers.
Transfer of Assets: That the C.A.R. board of directors further approve the transfer of substantially all assets of CALMLS to New CALMLS consistent with the terms of the final agreement for New CALMLS.
Holding Company: That the C.A.R. board of directors further approve amendment of the articles of incorporation and bylaws of the California MLS Inc. (“CALMLS”), substantially as presented in the June 7, 2010 New CALMLS Issues Briefing Paper, to create a holding company (“Holding Company”) for the following purposes:
- Retain the CALMLS credit line obligation to
C.A.R.;
- Fund database integration work for New
CALMLS, MLS software development work,
and transition expenses;
- Utilize tax credits against any future
revenue; and
- Capture endorsement and software royalty
payment revenue
Such approval conditioned on approval by the C.A.R. officers of the final agreement for New CALMLS and the final articles of incorporation and bylaws in substantial conformance with the purposed specified in the June 7, 2010, New CALMLS Issues Briefing Paper.
Officer Authority to Approve: That the C.A.R. Officers be authorized to approve final language of the agreement and execute all necessary documents consistent with and pursuant to the guidelines in the June 7, 2010 New CALMLS Issues Briefing Paper to conclude and close the transaction for New CALMLS.
2. Extension of the Line of Credit: That the C.A.R. board of directors further approve extension of the line of credit to CALMLS in an amount of $750,000 to be assumed and repaid by Holding Company under the same terms as the original line of credit (7 years fully amortized with 6% interest).
CREPAC Trustees
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval at the Fall 2010 Business Meetings. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.
NOMINEES FOR CREPAC TRUSTEE
(November 2010- November 2013)
Steve Reiser, Region 5
Dorothy Jackson, Region 6
Susan Davis, Region 12
Candice Carpenter, Region 21
Cas Pinkowski, Region 32
NOMINEES FOR CREPAC ALTERNATE
(November 2010 - November 2011)
Terriann McGowan, Region 4
Barbara J. Palmer, Region 10
Debbie Rodgers, Region 11
Frank Nelson, Region 14
Gregory Pawlik, Region 17
Marjorie McLaughlin, Region 24
Geoffrey Craighead, Region 25
Mark Marchand, Region 30
James Irving, Region 31
2. It was reported for information only that the CREPAC Trustees made the recommendation that $175,000 be funded from RPAC for the 2010 General election to California Congressional candidates.
3. It was reported for information only that CREPAC contributed $10,000 to bi-partisan candidates for the Assembly and Senate, as well as to the Democratic and Republican Parties.
Executive
1. That the C.A.R. Bylaws amendments be approved as noticed. (Click here for details.)
Housing
1. That C.A.R. change its position on AB 2016 (Torres), a bill which clarifies that an HOA can record a blanket request for copies of notices of default on all units in its Common Interest Development, from “WATCH” to “FAVOR.”
2. That C.A.R. change its position on SB 782 (Yee), a bill which limits a landlord’s options to terminate tenancies when domestic violence is involved, from “NOT FAVOR” to “OPPOSE.”
3. That C.A.R. change its position on AB 2651 (Knight), a bill which creates a new debt service process that will lower costs to veterans participating in the CalVet Loan Program, from “WATCH” to “FAVOR.”
IMPAC Trustees
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval at the Fall 2010 Business Meetings. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.
NOMINEES FOR IMPAC TRUSTEE
(November 2010- November 2013)
Paula Colombo, Region 03
Mary Chatton Brown, Region 05
Richard Tegley, Region 23
Leslie Munger, Region 28
NOMINEES FOR IMPAC ALTERNATE
(November 2010 - November 2011)
Tracy Shumard, Region 01
Anita Thede, Region 06
Lisa Muetterties, Region 07
RoseMarie McNair, Region 10
Lynn Heintz, Region 12
Patricia Douglas, Region 17
Alice McCain, Region 18
Carl San Miguel, Region 19
Paula Cosenza, Region 32
2. It was reported for information only that IMPAC has approved the following funding requests:
Orange County AOR: up to $50,000 to the No on Measure D, a ballot box planning measure in Mission Viejo.
No on Prop 16: Stop the PG&E Power Grab: $25,000 to help defeat Proposition 16, a utility right to vote reform proposition on the June 2010 statewide ballot.
California Association of REALTORS®: $7,500 to pay for the "Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants" (Environmental Hazard Booklet) to include a section on carbon monoxide.
Pacific Legal Foundation: $17,500 to support their litigation program in support of private property rights.
Legal Action Fund Trustees
1. It was reported for information only that, since the February meeting, the Legal Action Fund Trustees reviewed 8 cases and requests for funding. The Trustees authorized 3 amicus briefs.
Guggenheim v. City of Goleta
This case involves rent control in mobilehome parks, and whether a restriction which does not allow for vacancy decontrol (i.e. rents to adjust to market rates when the park space is vacated) is valid under federal law. The Ninth Circuit ruled that the City’s ordinance was not valid under the analysis of three factors used to determine whether a taking of property has occurred, and C.A.R. has argued that the three panel judges were correct. The entire Ninth Circuit (en banc) is rehearing this case. C.A.R. filed its amicus brief on May 13, 2010. Oral argument at the Ninth Circuit is scheduled for June 22, 2010.
Lange v. Segerstom
A buyer sued the seller and listing broker for failure to disclose that a home on a lakefront was not on the lakefront the entire year (i.e. the lake dried up during portions of the year). The buyer recovered a nominal amount from the seller, and the listing broker paid the $13,000 for both of them. The buyer did not recover attorneys fees because he failed to mediate first. However, the buyer released the seller from all liability if the seller would assign his rights against the listing broker to the buyer. By that time it was time barred and the court dismissed the claim. The buyer, using the assigned rights from the seller, appealed. The plaintiff is arguing that they were not aware of the claim, even though it was in litigation, until the case was final and therefore the statute of limitations had not start to run. Concerned about the end run around the attorneys fee bar, and the potential for huge extensions of the statute of limitations, the Trustees authorized a brief on the issues.
Tarrant Bell Property, LLC et al. v Superior Court
Plaintiffs are owners of mobilehome units that lease pad space in a mobilehome park (SpanishRanchMobilehomePark). The unit owners filed an action against the former and current park owners alleging that the owners failed to maintain the park in good working order and conditions, and as a result, the unit owners suffered damages. The owners moved to compel arbitration, or have the matter heard by judicial reference, based on an alternative dispute resolution clause in the space leases. The trial court denied these motions, and that was affirmed by the appellate court. The park owners appealed this decision to the California Supreme Court. C.A.R. sided with the park owners and filed a supporting letter for review, and the Supreme Court granted review. The Trustees authorized a brief on supporting the concept of an expansive view of alternative dispute resolution by contract which in this case is judicial reference.
The following developments have occurred in a case supported by the Legal Action Fund:
Steiner v. Thexton
The California Supreme Court has ruled on this case in a way favorable to our members. C.A.R. assisted in getting this decision before the California Supreme Court and also filed an amicus when hearing was accepted.
In short, this is a case in which a developer had an unequivocal right to cancel a contract but had spent significant resources obtaining a lot split and other approvals. The seller then cancelled claiming it was an unenforceable option due to lack of consideration and was illusory because the buyer could cancel at any time. The trial court and the Court of Appeal had supported the seller, allowing the seller to cancel. The Supreme Court reversed the decision stating that it was an option and that the significant sums constituted adequate consideration.
C.A.R. was concerned about the impact on the RPA due to the ability of a buyer to cancel a contract due to the failure of a contingency…but did not have to state a reason. The Court acknowledged our concerns as expressed in our brief and indicated in a footnote that “Thus, bilateral contracts subject to a contingency, which are widely used in real estate transactions, are not affected by our holding.” This, combined with our newly inserted good faith clause, reinforces that our contracts should not be impacted by this decision.
This is a good outcome for us and we accomplished what we set out to do which was to make sure transactions involving the RPA were not called into question. It is a landmark decision.
Legislative
1. That C.A.R. take the following positions on November 2010 Ballot Propositions:
“Voters First Act for Congress,” a proposition for the November 2010 Ballot, which would subject Congressional redistricting to the same commission that redraws state legislative districts -- “NOT REAL ESTATE RELATED”
"The Regulate, Control, and Tax Cannabis Act of 2010." -- “AGAINST"
Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Arcadia AOR
Alma Smith
Bay East AOR
Jay Boyd
Walter Fries
Jan Lebby
John Litvinchuk
Berkeley AOR
John Cashman
California Desert AOR
Jan Denison
Pete Lussier
Jordan Uttal
Coastal Mendocino AOR
Carol Ann Walton
Conejo Simi Moorpark AOR
Alva Conner
Robert Landegger
Leila Linder
Contra Costa AOR
Earl Corder
Carroll Darrow
Joan Eggers
Barbara Malan
Alex Paris
Mike Pingatore
Sachiko Sanchez
Walt Straub
Shirley Taliaferro
Inland Valleys AOR
Sid Greenawalt
Marin AOR
Patricia Beekler
Robert Berry
Robert Butler
Avril Couris
Howard Myers
Marvin Weissensee
Samuel Wester
Newport Beach AOR
Robert Brockman
Philip Hughes
Chuck Jones
Del Larson
Doris Lee
North San DiegoCounty AOR
Kenneth Lane
Northern Solano County AOR
Rita Anderson
Vina Hartnett
Darlene Howard
Gloria Koch
Elisa Reyes
Orange County AOR
Trudy Boim
Herbert Hoeschele
Annette Jones
Ramona Maney
Bernadette Naber
Don Newman
Gerry Psaros
JoChris Reinert
Benito Sanchez
Nancy Weagley
Pasadena-Foothills AOR
Carmen Autelli
Paso Robles AOR
Michael Collins
Pismo Coast AOR
Ed Callahan
San Diego AOR
Edith Howe
Eleanor Hutton
Joanna Kendall
Robert Lemire
Samuel Mallicoat
William Mitchell
Florence OShea
James Portman
Stewart Schwarz
San Francisco AOR
Beatrice Wahlbeck-Franco
Scenic Coast AOR
Carol Lutz
Esther Susoeff
Silicon Valley AOR
Edward Keating
Kathryn Kitching
L. Daryl Lee
Norma Marcus
Shirley Walker
Suzanne Wehde
Marianne Wylie
Joseph Yarkin
South Bay AOR
Elia Bull
Henry Carlson
Jean R Edwards
Marlene Ellwood
Karen Frisch
Ermione Giamos
Guy Hocker
William Riddle
Patricia Cla Sands
George Teer
Tulare County AOR
Wesley Clover
Jerry Herrmann
Charles Higdon
MLS/Computer and Business Technology
1. That, upon final approval by NAR, the C.A.R. Model MLS Rules be revised to adopt the following NAR mandated IDX changes:
a. Striking the IDX requirement for a participant to take reasonable efforts to prevent scraping and replacing it with language which provides that participants may not use IDX provided listings for any purpose other than display on their websites and expressly clarifying that partaking in IDX does not require participants to prevent indexing of IDX listings by recognized search engines;
b. Removing the ability of a listing broker to display his seller’s listing on the listing broker’s site if that seller opted out of Internet display – this restriction will then match the VOW prohibition in this regard so that an Internet Opt Out applies to ALL Internet sites;
c. Reducing the time that participants must refresh all MLS downloads from 7 days to 3 days;
d. Adding to IDX policy the VOW ability of a seller to request that any blogging and auto-valuation functionalities on a Participant’s IDX site be disabled as to seller’s listing;
e. Adding to IDX policy the VOW requirement that a Participant maintain a means (email address, phone #, etc) to receive comments about data or information on the IDX site and requiring the Participant to correct or remove false or inaccurate information on the site.
2. That, upon final approval by NAR, the C.A.R. Model MLS Rules be revised to adopt the following NAR optional IDX changes:
a. Adding additional clarifying language to the requirement to identify the name of the listing firm and listing agent so that it be in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display of listing data and that it contain an exception to the IDX name display requirement for a one-line or thumbnail search result as long as there is one or more additional display formats available for the listing;
b. Limiting the number of listings to 500 that a consumer can retrieve or download in response to an inquiry;
c. Limiting IDX participation to Broker Participants and R.E. Subscribers rather than to all Participants and Subscribers;
d. Prohibiting deceptive or misleading advertising (including co-branding) on pages displaying IDX-provided listings. For purposes of these rules, co-branding will be presumed not to be deceptive or misleading if the participant’s logo and contact information is larger than that of any third party;
e. Allowing co-mingling of data on IDX sites only from multiple MLS sources.
Nominating
1. That the following be designated to serve as State Allocated NAR Directors for a three year term ending November 2013 and as Alternates for the 2011 elective year.
Le Francis Arnold, Rancho Southeast
Colleen Badagliacco, Santa Clara
Steve Goddard, South Bay
Jared Martin, Fresno
Ann Pettijohn, Pacific West
Steve White, Southland Regional
Alternates (priority order)
Tom Carnahan, Southland Regional
Otto Catrina, Bay East
Jimmy La Peter, Pacific West
Gregory Pawlik, Beverly Hills/Greater LA
David Barca, Silicon Valley
Winnie Davis, Southland Regional
Toby Bradley, Santa Barbara
Dorothy Jackson, Bay East
Richard Tegley, Inland Valleys
Ann Throckmorton, San Diego
2. That the following individuals be elected as Directors For Life:
Dorothy Jackson, Bay East
Chris Kutzkey, Siskiyou
Geoff Mc Intosh, Pacific West
3. That Joel Singer be elected as Executive Vice President/State Secretary for the year 2011.
4. That LeFrancis Arnold be elected as President-Elect for the year 2011.
5. It was reported for information only that Don Faught will continue to serve a two year term as Treasurer for the years 2010 – 2011, and that Beth Peerce will serve as 2011 President.
Standard Forms Advisory Committee
The Standard Forms Advisory Committee (SFAC) received reports from 17 Regional Representatives. The SFAC reviewed a draft of the Real Estate Transfer Disclosure Statement (TDS) scheduled for release in November 2010. This form will be amended to comply with new statutory requirements concerning carbon monoxide detectors that take effect July 1, 2011. Other drafts considered included:
--Short Sale Addendum (SSA)
--Buyer Representation Agreement - Exclusive (BRE)
--Real Estate Owned (REO)
--Real Estate Owned Listing (REOL)
--Statewide Buyer and Seller Advisory (SBSA)
--Homeowner Association Information Request (HOA)
--Residential Listing Agreement (RLA)
The SFAC also decided to create a Short Sale Advisory form. A conference call will be held over the summer to review a draft of the proposed Short Sale Advisory and amendments to both the SSA and SBSA forms. It is the Committee’s intent to release all of the forms mentioned above by November 2010.
The SFAC received an update regarding the Property Management Study Group. This group will have a full day meeting over the summer to continue their work reviewing property management forms as well as some property management products and services. Finally, the SFAC reviewed 60 of the approximately 126 comments received. The balance of the comments will also be reviewed on a subsequent conference call.
Strategic Planning & Finance
1. That the audited Statement of Operating Income and Expenses by program for the twelve months ending December 31, 2009 be approved.
Total C.A.R.
Revenue of $27,157,000
Expenses of $24,076,500
An excess of operating income over expenses of $3,080,500
Political Activities Fund
An excess of income over expenses of $1,778,400
Issues Action Fund
An excess of income over expenses of $891,400
This amount will be allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2009
Total assets of $59,236,300 (of which $44,374,400 are current assets)
Total liabilities of $4,317,400 (of which $3,290,500 are current liabilities)
C.A.R. Fund Balance of $54,918,900
2. That the Statement of Operating Income and Expenses by program for the three months ending March 31, 2010 be approved.
Total C.A.R.
Revenue of $18,519,900
Expenses of $5,370,700
An excess of operating income over expenses of $13,149,200
Political Activities Fund
An excess of income over expenses of $2,564,500
Issues Action Fund
An excess of income over expenses of $1,201,200
The C.A.R. Balance Sheet as of March 31,2010
Total assets of $75,195,900 (of which $59,958,000 are current assets)
Total liabilities of $5,931,700 (of which $5,738,100 are current liabilities)
C.A.R. Fund Balance of $69,264,200
3. That the Projected Statement of Operating Income and Expenses by program for the year ending December 31, 2010 be approved.
Total C.A.R. Revenue of $27,139,800
Expenses of $25,867,700
An excess of operating income over expenses of $1,272,100
Political Activities Fund
An excess of income over expenses of $1,883,500
Issues Action Fund
An excess of income over expenses of $702,700. This amount will be allocated to IMPAC as approved by the Directors.
4. That the proposed special purpose assessment of Member Boards (AORs), REALTOR® and REALTOR-ASSOCIATE® Members shall be forty-nine dollars ($49) per each REALTOR® and REALTOR-ASSOCIATE® as per the variable dues formula ($49 plus the same amount for any non member licensee directly or indirectly licensed to such REALTOR® or REALTORASSOCIATE®), unless exempt (ie., LIFRO). The assessment is for political purposes.
REALTOR® and REALTOR-ASSOCIATE® Members can satisfy the mandatory political assessment by (a) making a voluntary contribution to the California Real Estate Political Action Committee (CREPAC) or the California Real Estate Independent Expenditure Political Action Committee (CREIEC) or to C.A.R. for other political purposes (allocated in a proportion to be determined yearly by the Directors of C.A.R.), or (b) opting to send the funds to the C.A.R. general fund for political purposes as determined by the Directors per the usual budgeting process.
The special assessment will follow the same structure as regular variable dues structure, in that the Member Board shall pay $49 for each of its REALTOR® and REALTOR-ASSOCIATE® members that pay their California and national dues through that association (primary members) PLUS $49 for each nonmember licensee directly or indirectly licensed to such REALTOR® or REALTOR-ASSOCIATE®, [excepting those exempt from state and national dues under the Association’s bylaws (such as LIFRO)], and less the direct contributions into CREPAC and CREIEC individually made by the Member Board’s primary REALTORS® and REALTOR-ASSOCIATES®. The assessment shall be prorated in accordance with the same proration policies applied to dues.
Taxation & Government Finance
1. That C.A.R. “SPONSOR” legislation that would amend the Brown Act to require local governments to post meeting agendas and summaries of staff reports on their website 72 hours prior to the scheduled meeting.
2. That C.A.R. “OPPOSE” legislation that imposes a property insurance surcharge to fund emergency response preparedness.
3. That C.A.R. "SUPPORT" AB 2654 (Hill), a bill which requires private solicitations that resemble official documents to prominently disclose that they are from a non-governmental entity.
Transaction & Regulatory
1. That C.A.R. "SUPPORT" a proposal to repeal the statute allowing a "masking" of transfer taxes paid.
2. That C.A.R. "OPPOSE" AB 2038 (Eng), a bill which would allow suspension of a professional license for failure to pay income tax.
