C.A.R. Seeks More Homeownership Opportunities for Young Families
The California Association of REALTORS® (C.A.R.) is embarking on an historic effort to increase homeownership opportunities, one that we know REALTORS® can feel good about supporting. C.A.R. is going to qualify an initiative for the November 2018 ballot which will allow senior homeowners (55 years of age and older) to keep all or most of their Proposition 13 property tax savings when they move.
This is important because seniors, who are often on a fixed income, fear they will not be able to afford a big property tax increase if they sell their existing home and buy another one, discouraging them from ever moving. As a result of this “moving penalty” almost three-quarters of homeowners 55 and older haven’t moved since 2000. C.A.R.’s portability initiative would allow senior homeowners to transfer their property tax base from their current residence to a replacement residence located anywhere in California.
The measure, if approved by voters, will let thousands of seniors, currently “locked into” their homes by low property tax rates purchase a home that will better suit their needs while expanding the housing inventory for young families seeking to buy a home. According to the California Legislative Analyst's Office, tens of thousands additional homeownership opportunities will occur annually.
This initiative will need to qualify for the November 2018 ballot. To support this effort and for other advocacy and education efforts, C.A.R.’s Board of Directors approved a $100 increase to the Issues Fund Assessment. All REALTORS® will be required to pay this assessment. Members who have already paid their 2017-2018 REALTOR® dues bill in full will receive a revised dues bill with the new amount, and will have to pay the assessment. Members on installment plans will also receive revised dues bills with an updated payment schedule.
There will be many opportunities for REALTORS® to be involved as well. In the coming weeks, we will be asking you to help gather signatures on petitions. This will be a great chance for you to show your clients all you are doing to promote homeownership opportunities and create tax savings for seniors. REALTORS® will also be asked to help educate their clients and the public about the benefits of the initiative, and, of course, next November we will need to get voters to the polls to win on election day.
We know you will have many questions. Please see the list of resources below. If after reviewing the resources below you have additional questions, please feel to contact C.A.R. via email at firstname.lastname@example.org or by phone at (916) 492-5200.
Portability Initiative Update
Campaign Talking Points Memo
Issues Action Fund increase
2018 Local IMPAC Reallocation FAQ for Local Associations
Task Force Report
Materials and Reference for AORs
Dos and Don'ts for GADs and Local AORs
Order Your Portability Toolkit
BOARD OF DIRECTORS MOTION
Property Tax Basis Portability Task Force
1. To approve the Property Tax Basis Portability Task Force recommendation that a ballot initiative for the November 2018 state wide ballot be circulated for signature gathering. The initiative will allow individuals 55 years of age and older to transfer their property tax basis to any home in the state, to purchase any price home, and to transfer their basis as many times as they wish. According to the Legislative Analyst’s Office almost 43,000 additional transactions will occur annually. The cost to circulate the initiative for signature gathering is $3 million, with the cost of the subsequent campaign ranging between $30 million and perhaps upward of $50 million, if the initiative is heavily contested. Funding would come from C.A.R. political action committees, reserves, NAR funds and a C.A.R. member assessment.
2. That the Issues Action Fund allocation be increased by $100, contingent upon the adoption of the Property Tax Basis Portability Task Force motion to proceed with a ballot initiative. The entire increase of $100 would be allocated to State IMPAC and dedicated to the initiative campaign. The total IAF would increase by $18,904,000.
Beware of Fraudulent Violation Emails
CRMLS users have alerted us that they have received fraudulent emails from someone posing as a CRMLS Compliance officer. The emails are sophisticated phishing attempts and
December 2017 Forms Release
On December 11, 2017, C.A.R. released three new forms, discontinued three forms, and revised 13 forms. The three new forms are the Amendment of Existing Agreement Terms (AEA), the Property Images Agreement (PIA), and the Team Agreement (TEAM). The AEA addresses a question that has come up for some time. What form is used to make an amendment to an existing contract? The answer had been to use the Addendum, which some found awkward. Now, the answer will be to use the AEA for amending an existing contract. The Addendum is to be used as an attachment to an offer or disclosure when there is a need for more room. The PIA addresses issues around who owns the rights to the photographs or other images used in marketing a property, something often overlooked until there is a dispute. Finally, in light of the growing popularity of working as part of a real estate team, the TEAM is designed to provide needed clarity and guidance. Among other matters, it addresses the scope of the team's work, who has the right to certain property or clients, division of compensation, and, perhaps most importantly, what happens when a team member leaves the team.
The three discontinued forms are the Natural Hazards Disclosure (NHD), the Notice of Your "Supplemental" Property Tax Bill (SPT), and the Mortgage Loan Disclosure Statement (Borrower) (MS). These forms were little used. The NHD is now routinely given by disclosure companies providing NHD reports, the SPT notice is in the Statewide Buyer and Seller Advisory (SBSA), and the MS is a loan disclosure not required to be completed by the vast majority of our C.A.R. members. Additionally, the MS is a duplication of the Department of Real Estate mortgage disclosure forms RE 882 and 883.
The revisions in the 13 other forms generally address practice issues and requests for changes brought to the attention of the Standard Forms Committee. For most of the revised forms, it is permissible to use prior versions of the form, except for the revised Seller License to Remain in Possession (SIP) and the Charges for Required Homeowner Association Documents (HOA2). The revised SIP clarifies the seller's status and the possession payment. For the HOA2, beginning January 1, 2018, the HOA billing form must contain language informing the seller that he or she may give the buyer, at no cost, copies of current required HOA documents that are in the seller's possession, and that the seller is not required to request all HOA documents from the HOA, only the ones that the seller needs. For help in becoming comfortable with the new and revised forms visit the Standard Forms December 2017 Forms Release page and the December 2017 Forms Release Summary.
2018 Advertising Rules: Revised Q&A and New Quick Guide - One More Time
A final reminder before year end that the advertising requirements for real estate are changing, effective January 1, 2018. C.A.R. has two tools that can help you be in compliance in 2018. The recently revised Q&A, Advertising Your Services: Required Name and License Information, has the information you need to know. Another tool is the Quick Guide: The 2018 Advertising Rules. The Quick Guide is part of the new C.A.R. Legal Tools that provide easy to use videos, slide decks, flyers, and quick summaries of important topics for REALTORS®. In addition to the links above, you can access other Q&As, and Legal Tools through the Legal Hotline App. You can also use the Hotline App to contact the Hotline if you have additional legal questions.
Notifying the DRE of Broker Associates - Beginning 2018
Effective January 1, 2018, AB 2300 requires brokers to inform the DRE, in writing, whenever a real estate broker acting in the capacity of a salesperson (i.e., a broker-associate) enters the employ of another real estate broker or corporation. The bill also requires that whenever the employment of a broker-associate is terminated, the responsible broker shall immediately notify the Commissioner in writing. The broker-associate notification requirements go into effect on January 1, 2018, and apply to all broker-associates, including those whose affiliation with a responsible broker started before January 1, 2018
Brokers can use the “Broker-Associate Affiliation Notification” (RE 215) form. More information regarding the reporting requirement is available from the DRE's “Frequently Asked Questions Regarding ‘Broker-Associate Affiliation Notification."
C.A.R. Webinars are Available On Line
We know that you are busy and that your time is extremely valuable. Yet, you still need to keep informed and up to date on important real estate issues, such as changes in the forms, new laws, and new real estate cases. One tool that you can use at your convenience is C.A.R. Legal Live Webinars which are recorded and available to you at www.car.org and through the Legal Hotline App. Past topics include the December 2017 Forms Release, 2018 New Laws, Trust-Related Sales, Conversation with the California Bureau of Real Estate, Fair Housing, and Contingent Sales and Chain Transactions. Now, you can watch them on your schedule.