This week we are sharing the next group of 2012 real estate laws that California Association of Realtors recently announced. We understand that keeping up with regulations, technology and market conditions can be tricky, so we hope that you find this article helpful. Stay tuned for the final five laws that you need to know about.
Sellers Disclosing Water-Conserving Plumbing Fixtures: C.A.R. successfully sponsored a new law, effective January 1, 2012, revising the Transfer Disclosure Statement (TDS) to include a checkbox in Section A for the seller to disclose whether the property has water-conserving plumbing fixtures. The revised TDS also clarifies at the end of Section B that, by January 1, 2017, a single-family residence built on or before January 1, 1994 must generally be equipped with water-conserving plumbing fixtures. If, however, that single-family home is altered or improved on or after January 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval. Water-conserving plumbing fixtures are low-flow toilets, shower heads, and faucets under section 1101.3 of the California Civil Code. C.A.R. intends to release a revised TDS form in November 2011 to comply with this law. Senate Bill 837.
NHD Companies Disclosing Mining Operations: Starting January 1, 2012, a company preparing a natural hazard disclosure (NHD) statement for a prospective buyer, as required for certain transactions, must also disclose whether the property is located within one mile of a mining operation, according to map coordinate data from the Office of Mine Reclamation. If a property is within one mile, the NHD company must give a specified notice that such mining operations may cause inconveniences. Senate Bill 110.
No Fee Bundling for HOA Disclosures: Beginning January 1, 2012, another C.A.R.-sponsored bill requires a homeowner’s association (HOA) to, upon written request, give an estimate of the fee for providing a prospective buyer with the governing documents of the common interest development and other required HOA disclosures. The fee must be reasonable based upon the HOA’s actual cost for procuring, preparing, reproducing, and delivering the HOA documents. If the fee is paid, the HOA cannot withhold the required HOA disclosures for any reason. Moreover, the HOA cannot bundle the fee for providing required HOA disclosures with any other fees, fines, or assessments. This law will prevent an HOA’s third-party document preparation company from bundling together both mandatory and non-mandatory HOA documents, and charging a higher fee for providing all the documents. The HOA is also prohibited from charging any additional fees for electronic delivery of HOA documents, which must be available to a requesting party if the HOA maintains the documents electronically. Additionally, at a buyer’s request, the HOA must provide 12 months of approved minutes of the association’s board of directors meetings (excluding executive sessions). Delivery of the required HOA documents must be accompanied by a cover sheet itemizing the documents required by law and those provided. In November 2011, we intend to release a revised C.A.R. standard form Homeowner Association Information Request that complies with this requirement. Assembly Bill 771.
Brokers Designating Managers: Under another law that C.A.R. sponsored, effective July 1, 2012, an employing broker may appoint a licensee as a manager to supervise the licensed activities, clerical staff, and day-to-day operations of a branch office or division. An appointed manager who fails to properly supervise licensed activities will be subject to disciplinary action by the California Department of Real Estate (DRE). Appointing a manager, however, does not limit the employing broker’s supervisory responsibilities. The appointment of a manager must be in a written agreement in which the manager accepts the delegated responsibility. The employing broker must notify the DRE when a manager has been appointed or terminated. A licensee cannot be an appointed manager if the licensee holds a restricted license, is or has been subject to a debarment order, or is a salesperson with less than two years of full-time real estate experience within the last five years. Senate Bill 510.
Strengthening DRE Enforcement: Effective January 1, 2012, the DRE will have greater disciplinary authority to achieve its highest priority of protecting the public. A licensee will be required to report to the DRE within 30 days of any of the following: (1) disciplinary action taken by another licensing entity in California or another state, or by a federal governmental agency; (2) an indictment or information charging a felony against the licensee; or (3) a conviction of a felony or misdemeanor, including a plea of guilty or no contest. Failure to comply with this reporting requirement will be cause for discipline. The DRE’s broader disciplinary authority will also include, among other things, the ability to automatically suspend the license of anyone incarcerated after a felony conviction. For disciplinary actions, the DRE can conclusively presume without a hearing that a licensee’s conviction of murder, rape, lewd and lascivious acts, or a violation of dangerous drugs or controlled substances laws is substantially related to the licensee’s qualifications, functions, or duties. The DRE will also be able to enter into a pre-prosecution settlement with a licensee or applicant instead of issuing an accusation or statement of issues, but the settlement shall be considered discipline. Additionally, the DRE can request that a disciplinary order requires the disciplined licensee to pay reasonable investigation and prosecution costs. Failure to pay can result in non-renewal of license. The DRE can also require that a restricted licensee pays the costs for monitoring the licensee and monetary restitution to any person who sustained damages caused by the licensee’s misconduct. Again, failure to pay can result in non-renewal of license. Senate Bill 706.
Recently, the California Association of Realtors announced a list of new laws and regulations that agents and brokers need to be aware of, not only for their own knowledge, but also for their clients. To help you in understanding these updates, we will be posting the new laws over the next few weeks to assist you educating yourself on these very important updates.
1. Revising the Notice of Sale: Effective April 1, 2012, a notice of trustee’s sale for the non-judicial foreclosure of one-to-four residential units must contain specified notices to the owner on how to seek postponement of the trustee’s sale, and to potential bidders on the risks involved in bidding at trustee auctions. Additionally, a lender or authorized agent must make a good faith effort to provide up-to-date information about sale dates and postponements to persons who want this information. The lender must also provide updated information through the Internet, a telephone recording, or any other means that allows free access at any time. Senate Bill 4. Read Full Text
2. Renting Out Condominiums: C.A.R. also successfully sponsored legislation protecting owners’ right to rent out their units in common interest developments. Starting January 1, 2012, an owner in a common interest development is exempt from any prohibition in a governing document against renting or leasing the unit, unless that prohibition was in effect before the owner acquired title to his or her unit. When renting out a unit, the owner must give the HOA verification of the owner’s acquisition date, and name and contact information of the prospective tenant. An owner’s right to rent under this law does not terminate for certain transfers of title, including, but not limited to, probate, spousal, parent-to-child, adding a joint tenant, and other transfers exempt from property tax reassessment. For sales transactions, the required HOA disclosures must include a statement describing any prohibition in the governing documents against renting or leasing. This law does not apply to rental prohibitions in effect before 2012. Senate Bill 150. Read Full Text
3. Tenants Smoking Ban: Beginning January 1, 2012, a residential landlord can prohibit the smoking of cigarettes and other tobacco products on the property, including any dwelling unit, building, other interior or exterior area, or the premises on which the property is located. For new tenants on or after January 1, 2012, the areas where smoking is prohibited must be stated in the lease or rental agreement. For preexisting tenants before 2012, a new provision prohibiting smoking is a change in the terms of tenancy that requires adequate written notice, depending on whether the tenancy is month-to-month or for a fixed term. Senate Bill 332. Read Full Text
4. Tenants Displaying Political Signs: Effective January 1, 2012, a residential tenant can generally display political signs related to elections, legislative votes, initiatives, and other political matters as specified, but the landlord can make reasonable restrictions as to location, size, and duration of display. In a single-family dwelling, a tenant’s political signs can be displayed from the yard, window, door, balcony, or outside wall of the leased premises. In a multifamily dwelling, a tenant’s political signs can be posted in the window or door of the leased premises. A landlord can restrict the size of a political sign to six square feet. A landlord can also prohibit a tenant from displaying political signs that violate local, state or federal law, or a lawful provision in an HOA’s governing documents. A tenant must remove political signs in compliance with time limits set by local ordinance, or absent such time limits, the landlord can reasonably restrict the posting of a sign to 90 days before an election or vote, and its removal within 15 days after the election or vote. Senate Bill 337. Read Full Text
5. Tenants Recycling Rights: Commencing July 1, 2012, a multifamily residential dwelling of five or more units (or a multifamily residential dwelling or business that generates more than four cubic yards per week of commercial solid waste as defined) must arrange for recycling services. The intent of this law is to address the challenges local governments are facing in reducing solid waste disposal in multifamily properties. The required recycling services are to be consistent with state or local laws, to the extent that these services are offered and reasonably available from a local service provider. The property owner of a multifamily residential dwelling may require tenants to source separate their recyclable materials to aid in compliance with this law. Assembly Bill 341. Read Full Text
*Information provided by the California Association of REALTORS
You may have noticed that energy-efficiency ratings have started popping up in residential listings. That may be because of recent findings published by The Earth Advantage Institute, a non-profit group in Portland, OR, who found that certifications from Energy Star or LEED (Leadership in Energy and Environmental Design) boost sale prices by an average of 8%. The news is even better for existing construction: certifications add a premium of about 30% to the home.
But wait, there’s more! In Portland, OR, a recent review of residential listings showed that energy-efficient homes spent 18 days less time on the real estate market than comparable non-certified properties. That might help explain why banks have started picking up on the trend. They realize that a borrower who pays less to heat and power an energy-efficient home is better able to pay the mortgage, and therefore, presents less risk to the underwriting bank. Appraisal companies are becoming more attuned, too, introducing training programs that educate their field appraisers on what to look for and how to integrate their findings into valuations.
As the move toward energy-efficiency and sustainability continues, this may become more the rule than the exception. At the end of the day, it’s becoming clearer: energy-efficiency saves owners money and time.
The last few days before closing escrow can be a stressful time for homebuyers and sellers. However, there are a few things you can do to ensure a timely and smooth close.
- It’s important to review your final closing statement or HUD-1 statement a day or two before closing. Look over the calculations to make sure that the buyer is receiving credit for all deposits and any other credits due from the seller.
- Review all escrow and title fees to make sure they accurately reflect what you were told and that you agree to them.
- Look over the preliminary report to confirm the legal description of the property and any liens or other items that may have been discovered. Make sure all items that you did not agree to will be removed at the close of escrow.
- Be sure escrow or title has your correct vesting (the way in which you want to take title).
- Inspect the property one last time prior to closing to verify that everything is the way you expect it to be, and that all agreed upon repairs or work have been taken care of.
It is also very important that all conditions of the purchase contract are met prior to closing, and that all instructions that were given to the closing agent have been completed. If you have double checked that all items are correct, it’s time to sign the closing documents!
Whether you’re trying to stay in touch with friends, family, colleagues, or clients, you probably may have so many different methods that it’s hard to keep them straight. What you might not know is that Facebook has a tool called Video Calling. It’s a way to be face to face conversation without leaving your status behind.
Facebook’s Video Calling feature allows you to chat real-time, face-to-face, while multi-tasking. Whether you’re text chatting or posting photos of a listing, Facebook allows you to do it all in one location. Oftentimes, you may have a client or colleague who isn’t in the immediate area. Facebook Video Calling allows you to interface with them on the Internet, one-on-one, from your office. Whether it’s exploring options on a listing, talking with another agent about an offer, or working with a contractor on repairs, Facebook Video Calling keeps you connected when you need to be. Most likely, you’re already connected with a lot of those same people on Facebook anyway!
To take full advantage of Facebook Video Calling, you and the recipient need a webcam and microphone (starting at around $30). Once you’ve got the hardware, you open a Facebook chat session with the recipient and click the Video Camera icon. When you’re doing this for the first time, you’ll have to download and install Facebook’s Video Chat software – but during that time, Facebook will alert you to which of your other contacts are already enabled for Video Calling. If the recipient you’re calling doesn’t have a webcam, they’ll still be able to see and hear you – you just won’t be able to see them.
It’s not just status. The powerful (and inexpensive) Video Calling feature can help you maintain personal connections – and could help give you an edge over the “other” agent!
On the Internet, there are many different ways a client can find you and your listings. That makes information like knowing where they came from, what led them there, and how long they stayed on your site all the more important. With a few minutes of your time, Google Webmaster Tools can help you figure out what’s working best for your online presence.
“Google Webmaster Tools,” says Jimmy Macklin at theMLSapp.com, “provides insight on keyword rankings, impressions, and CTRs… priceless for Realtors looking to optimize their sites.” You can optimize your site(s) to boost traffic from elsewhere on the web, simply by using the applications that Google offers.
To add and verify your site:
1) Login to your Google Account (if you don’t have one already, you’ll need to create one).
2) Find “Webmaster Tools” under “My Products.”
3) Click “Add a site” and type the full URL for your site (e.g. http://www.mysite.com/).
4) Click continue; the site verification page will open.
5) Select the desired verification method, then follow the prompts to complete.
6) Repeat as necessary for each of your unique sites.
As you determine what’s driving clients to your website, you can customize content, focusing on your own unique brand. By creating memorable content that is also useful and timely, you allow more opportunities for your clients to connect with you. Before long, you’ll be connecting with more clients!
As a seller in the current market, you might find yourself wondering on occasion if now is the right time to sell. If you’ve seen a decrease in the number of visitors to your property, don’t pull the listing. Instead, look at these ways you might improve your chances of finding a buyer:
- Review the price. Speak with your agent, especially if your house has been listed for more than a month. Take a look at recent comps to ensure your price is in line. If necessary, get a fresh appraisal to ensure your price makes sense.
- Create curb appeal. Potential buyers explore neighborhoods before they set up viewings. As such, make sure your house looks as beautiful on the outside as it does on the inside. If you have any out-of-season flowers or shrubs, consider sprucing them up.
- Improve interior appeal. Sometimes all it takes is a simplification: store the knick-knacks and extra furniture. A fresh coat of paint may be in order. Work with a staging company to ensure that any of those “problem” spots in your home look wonderful and inviting!
- Update your listing. These days, most buyers start looking for homes online before they view homes. Review your listing, and make sure the pictures in your listing represent your house beautifully and accurately. If you’ve done anything along the lines of items 2 or 3, take updated pictures and make sure they’re updated online.
- Negotiate. It used to be the buyer who had to do this. Now, it’s the seller’s turn. Make sure you consider all advantages of an offer before rejecting it outright. The ground between you and the buyer may be much smaller than it initially appears. Consider seriously what it would mean if you didn’t take the offer and what it would really cost if you did, then think about #6.
- Sweeten the pot. You may have already decided that you’re getting rid of the appliances, so consider throwing them in. If you have a little wiggle room, consider helping the buyer with closing costs or moving expenses to help defray some of those costs for them.
In today’s housing market, you have to be one step ahead of the competition. By following one (or several) of these suggestions, you can help ensure the best opportunity possible to sell your home.
Personal landing pages are becoming all the rage for real estate professionals. Services like DooID.com allow you to launch your personal landing page in just a few minutes. Once it’s active, modern-day technology allows your personal landing page to be virtually maintenance-free, pulling content from sources that you regularly use.
As you build your personal landing page, think about the kind of personal connection you want to make with your clients. Tell them about yourself: your hobbies, your family, your favorite restaurant, your favorite movie. Doing so allows your clients a peek behind the proverbial curtain – a look at the person behind the sign – so they see you as someone they can relate to.
These days, we’re connected to the world through multiple channels; your personal landing page can be a virtual contact list for you, linking your clients to you via Facebook, Linked In, Twitter, and email, as well as your office and cell phone numbers and office address. Each different point of contact allows you more opportunities to grow your list of clientele.
By setting up a personal domain (e.g. yourname.com), you appear more professional. It’s easier to build and maintain your “official” brand, linking to the companies and services that you personally trust. Your listings have a place here as well, staying updated through the services you setup at the start.
With a little thought and planning, your Personal Landing Page can become a powerful tool. By giving your past and present clients a way to stay in touch, you’re also growing your business and building a reputation as someone they like and trust!
There are more that 750 million people on Facebook. However, not every user has a full understanding of some of Facebook’s everyday terminology. Not understanding these key terms will leave users confused and nervous about navigating the Facebook platform. Use our glossary to help find your way as you explore the world of Facebook:
News Feed – Also known as the “Home page”. Facebook defines the News Feed as “the center column of your home page – a constantly updated list of stories from people and Pages that you follow on Facebook”. The News Feed includes friend’s and page’s photos, text updates, outside links to favorite articles, videos, etc. The only person who can see your News Feed is you!
Profile – The Profile allows the user to enter information about themselves, such as their birthday, where they are from, favorite movies, books, place of employment, etc. This information is all voluntary, but Facebook does require your full name and birthday. Your profile represents who you are, and, as stated in the Terms of Service, cannot be used for commercial gain.
Page – Pages, also referred to as “Fan Pages”, allow brands, celebrities, organizations and other entities to have a presence on Facebook. Pages are visible and searchable to the public. Any Facebook user can connect with a Page by clicking the “Like” button. If you “Like” a Page, you will then receive updates from the Page in your News Feed (or Home Page).
Wall – Every Profile and Page has a Wall. The Wall is a space where you or a Page share content with your friends or Fans. Friends and Page Fans also have the ability to post and share content on your Wall, unless you change this setting in your Privacy Settings. Posting on the Wall is one of the most popular forms of communication in Facebook.
Like – You can “Like” just about anything if it’s on Facebook! Clicking “Like” can connect you to a Page’s content. You can also “Like” specific pieces of content from your friends and Pages. Doing this allows you to stay connected to that piece of content’s particular conversation.
Status –“What’s on your mind?” Facebook asks this in the “Update Status” box on the News Feed and Profile of every user when logged in to the system. By updating your current status, you can start a conversation with your Friends about what you’re doing. By sharing a status, it will appear on your Profile and in the News Feed of your Friends. The, your friends can “Like” or leave a comment on your status, which can turn into a fun conversation.
According to the California Department of Consumer Affairs, the number one disagreement between landlords and tenants comes after the tenant vacates the property. The most common subject of that disagreement? Refund of the security deposit.
California law allows landlords to use a tenant’s security deposit for one of four things:
- Unpaid rent.
- Cleaning – but only to return the unit to the condition the property was in upon move-in.
- Repair of damages caused by the tenant or the tenant’s guests beyond normal wear and tear.
- And – only if the lease or rental agreement specifically stipulates – for restoration or replacement of furniture, furnishings, or other items (e.g. keys) beyond normal wear and tear.
Under California law, within 21 calendar days of the tenant’s vacancy, the landlord must send a full refund of the security deposit or provide an itemized statement of deductions from the security deposit with a refund for the remainder. Furthermore, the landlord must also provide copies of receipts (or good-faith estimates) for any repairs or cleaning necessary to bring the rental property back to the “original” move-in condition. All supporting documentation must describe the work, time spent, and hourly rate (the hourly rate must be reasonable). If estimates were provided initially, a tally of the final costs and any amount remaining should be sent to the tenant within 14 calendar days.
If a former tenant disputes the charges, the most prudent course of action is to review objectively and respond quickly. A steady flow of communication goes a long way. Know what the law allows and doesn’t allow, and you’ll avoid unnecessary disagreements.
For more information about this and other landlord/tenant subjects, visit the California Department of Consumer Affairs website at http://www.dca.ca.gov.
