Monday, May 3, 2004

FIRST COMPREHENSIVE STATEWIDE BROKER RISK MANAGEMENT SURVEY
The C.A.R. Legal Department is about to conduct a survey of brokers to more quantitatively determine possible areas of risk and legal exposure faced by real estate brokerages in California and the costs associated with those risks. We believe that the results of the survey will provide an industry-wide benchmark so that brokerages can individually measuretheir own performance based on the results. This information will also assist C.A.R.'s E&O Insurance Task Force to evaluate ways to keep viable low cost E&O insurance in California's market. Finally, the results will be used to incorporate risk management efforts through information campaigns, Q&A pieces, education and possibly standard forms initiatives. Of course, as in all of our surveys, identifying information will be kept confidential and will not be shared.

We understand that it takes time to complete this kind of a survey with details but hope you agree that the effort will be worthwhile to help everyone eliminate unnecessary risks and costs. In appreciation, we will share a summary of the survey results with brokers who participate by completing the survey.

You may access the survey by clicking on the following link: <>   

Please return your completed survey to C.A.R. by May 15th, 2004 (detailed contact information enclosed in the survey). We thank you in advance for your participation in this initiative and hope you will find the benefits worth your valuable time.

NAR MANDATED ETHICS TRAINING
The deadline for REALTORS® to complete their NAR mandated ethics training, December 31, 2004, is fast approaching. Since the penalty for a REALTOR® not completing the training by the deadline is suspension from membership, C.A.R. is providing the following FAQ that answers those questions most frequently asked about what members need to do to meet the NAR requirement.

1. What is NAR's actual requirement? All REALTORS® are required to take either a New Member Code of Ethics Orientation or Quadrennial Code of Ethics Training (for continuing members), meeting NAR learning objectives, in the 4-year window between January 1, 2001, and December 31, 2004. In addition, a REALTOR®'s obligation is satisfied (they are "grandfathered" in) if they took training, meeting NAR learning objectives, at any time after the 1999 NAR Annual Convention and before January 1, 2000.

2. If a REALTOR® takes the New Member Orientation during the 4-year window, are they also required to takethe Quadrennial Training during the same 4-year time frame? No.

3. Must REALTORS® in nonresidential fields comply? Yes. As long as the member is a REALTOR® bound by the NAR Code of Ethics, he or she must remain familiar with the Code.

4. Do the Ethics classes that California REALTORS® take for their license renewal satisfy the NAR requirement? Most Ethics license renewal classes in California probably comply. We know for sure that Ethics classes taken from C.A.R., either the individual Ethics class or the Ethics portion of the six-hour survey class (offered on-line or for an individual home-study), satisfy the NAR requirement, as well as DRE requirements. A member who takes license renewal classes from another vendor would probably want to check with that vendor.

5. Are there other sources for the NAR mandated training? NAR offers the classes for free on the realtor.org web site. In addition, some other vendors and local associations in California offer classes that they say meet NAR requirements. A REALTOR® would need to check with the provider of the training to ascertain if it meets NAR requirements.

6. May a REALTOR® firm develop a course for its own agents? Yes. However, since local associations are the ultimate determiner of whether their members have satisfied their training requirement, developers of such courses should confirm with the local association that the proposed course or training program satisfies the NAR learning objectives.

7. Who is responsible for tracking REALTORS®' compliance? Since NAR policy provides that failure to meet the requirement is a violation of a membership duty that will result in suspension of a REALTOR®'s membership until the requirements are met, each local association will establish some type of tracking mechanism. However, the method of tracking is at the discretion of the association.

8. What responsibility do REALTORS® have for informing their local association that they have met the requirement? As a matter of local discretion, local associations will establish reporting requirements. However, since their membership in the Association of REALTORS® is at stake, REALTORS® should take reasonable steps toensure that their association is aware they have met the training requirement. Each REALTOR® is required to verify to their local association that they have taken a class complying with NAR requirements and the association may, in its discretion, accept its member's word, without further verification.

COMING UP IN CALIFORNIA REAL ESTATE MAGAZINE
In the May issue of California Real Estate magazine, read all about C.A.R.'s ad campaign highlighting the differences between REALTORS®and non-REALTOR® licensees, which uses the tagline, "REALTOR® -- The Most Important Title in Real Estate™." Also in May, learn about the candidates running for C.A.R.'s 2005 Leadership Team, as well as how REALTORS® can increase theirvalue through professional education. The May issue also profiles Scott McMillin, head of one of San Diego's largest independent brokerage firms, and discusses ways REALTORS® can get involved in C.A.R.'s government affairs efforts.

Also in May, look for the Summer 2004 issue of Real Estate Technology magazine. The issue will explore wireless technology and how it can help REALTORS® increase their efficiency, hot new products on the market, and Web-based lead-generation systems. You'll also read about Fidelity National Information Solutions, one of the biggest players in real estate's technology arena, as well as how NAR's IDX and VOW policies are changing the way brokers market listings.

In the June issue of California Real Estate magazine, C.A.R. presents an in-depth look at California's housing affordability crunch and some of the steps that are being taken to address the problem. Pundits from multiple sectors of the housing industry offer their insight into the problemand discuss various ways to change regulations, buyers' expectations, and other factors contributing to the state's housing shortfall. In addition, the magazine includes information about C.A.R.'s Housing Affordability Fund and profiles of some of the projects that have received contributions from the fund, as well as examples of how individual REALTORS® can increase housing opportunities in their own communities. Also in the June issue, Prudential California Realty CEO A. David Cobo shares the firm's plans for continued growth both in and outside of the Golden State.