C.A.R. Networker

Title Companies May Again Provide Property Profiles

Property profiles again may be provided to REALTORS® by title companies.  Recently the California Dept. of Insurance (CDI) issued a letter that was unclear in this respect. C.A.R.’s Governmental Affairs Dept. met with the Dept. of Insurance on July 2 and expressed concern about the interpretation of the letter and its impact on the market. The CDI said they did not intend their letter to be interpreted to prohibit property profiles, and agreed to look at the matter, recognizing the urgency and the need for immediate action.  This week the CDI issued a new letter that makes it clear that the CDI’s chief deputy “did not intend for my June 12 letter to be interpreted as a call for title insurers to change their business practices.”  It goes on to say that any conduct must continue to be within existing law and does not mean that “anything goes”.  However, the letter is clear that the department will not take enforcement action against title insurers for distributing information about properties in the manner that they did immediately prior to June 12. The CDI will be proceeding with possible regulations in a manner that will not result in continued market disruption. C.A.R. will continue to be vigilant protecing your interests proactively monitoring this process as it goes forward.

 

Title Companies May Advertise in Local Association Magazines

Earlier this year C.A.R. requested a Legislative Counsel Opinion on the issue of whether SB 133 prohibits title companiesfrom placing advertisements in local Association of REALTOR® magazines. That Legislative Counsel Opinion has been issued and confirms our understanding of SB 133 as it relates to local Associations receiving advertising and other promotions from title companies. In brief, local Associations of REALTORS® are not covered under this act and it is therefore in applicable to them in most circumstances. The well-written and reasoned Legislative Counsel Opinion is not law or regulation but is an authoritative statement by a credible arm of the Legislature, its Counsel. Therefore, SB 133 can no longer be used as a viable explanation for declining to advertise with local associations. The rationale appears to apply equally to sponsorships, volunteer participation, use of staff, booth purchases and similar activities that title companies have traditionally participated in with local Associations. Of course, there are some exceptions when very specific benefits flow to individual members.

 

C.A.R. Still Fighting Independent Contractor Withholding Proposal

C.A.R. is still opposing a proposal to force those making payments to independent contractors to withhold 3% on top of the amount independent contractors must pay for the quarterly estimated tax payments. This provision has been included in proposals intended to bridge the state's budget gap. C.A.R. opposes this forced over withholding because it unfairly singles out independent contractors to shoulder a portion of the burden of the state’s budget troubles and because it fails to address systematic problems in California’s budgeting process. The morning of June 30, C.A.R. initiated a Red Alert requesting REALTORS® to contact their representatives and ask that they reject the passage of this withholding. The Red Alert was distributed to REALTORS® residing within Senate and Assembly districts represented by Democrats. This proposal was placed in SB 17XXX earlier this week, approved by a majority vote of both legislative houses, and subsequently vetoed by the Governor on June 30. Please see C.A.R.’s Red Alert here.

 

Deal Close on Point-of-Sale Retrofit Bill

C.A.R. has agreed upon amendments to remove its opposition to SB 407, a bill that would require that ALL residential and commercial properties be retrofitted at point-of-sale with low-flow toilets, shower heads and faucets. While C.A.R. appreciates the goal of conserving water, C.A.R. opposed SB 407 because its point-of-sale approach will not achieve the objective of significantly reducing water consumption, and because it will burden escrows and could further destabilize the already weak housing market. C.A.R. has reached a tentative agreement with the author and sponsors to remove all point-of-sale provisions from the bill, require all properties to be retrofitted by 2017, and to add a disclosure to the TDS modeled after the disclosure that now applies to garage door openers. C.A.R. will not remove its opposition until the agreed upon amendments are in print. SB 407 was approved by the Assembly Judiciary Committee on June 30 and is pending in the  Assembly Housing and Community Development Committee.

 

C.A.R. Opposing Bill to Repeal Sunset on 60-Day Notice Requirement 

Current law requires an owner of a residential dwelling to give at least 60-days' notice when tenants have been in occupancy more then 12 months, and at least 30 days' notice prior to termination if any tenant or resident has resided in the dwelling for less than one year. SB 290 (Leno) would delete the January 1, 2010 sunset date on this 60-day notice mandate, which if left in place would repeal that requirement. C.A.R. continues to oppose SB 290 requesting amendments to require tenants to give the same 60 days' notice that is currently required for residential rental property owners. SB 290 is currently pending on the Assembly Floor.

 

Help Protect Your Business! Invest in the REALTOR® Action Fund Today!  

As reflected above, C.A.R.'s Government Affairs Team is experiencing great successes on behalf of REALTORS®. These “wins” allow REALTORS® to conduct business in an environment free of unreasonable government restrictions. C.A.R. President Jim Liptak is urging all members to invest in the REALTOR® Action Fund to ensure that C.A.R.'s Government Affairs Team can continue to defend REALTORS®' rights to do business in California.  Please click on https://investinrpac.realtoractioncenter.com/03/raf  to make your RAF investment.

 

For more information about C.A.R.'s Legislative Liaison program, please contact DeAnn Kerr at deannk@car.org.