Event Coverage

Time to Get Politically Involved, C.A.R. Legislative Advocate Urges SAMCAR Members

Describing his role as that of overseeing the “nuts and bolts of state regulations,” California Association of REALTORS® (C.A.R.) Staff Vice President and Legislative Advocate Stan Wieg updated SAMCAR Realtors and affiliates on the latest developments in the state legislature at SAMCAR’s Combined Marketing Meeting this week.

“There’s more activity this year, but its firmly in the hands of the Democrats,” announced Wieg. He described the Senate as being “business friendly,” but Governor Arnold Schwarzennegger as being “unpredictable.”

Wieg discussed legislation C.A.R. is supporting this year. Some important ones include SB 226, AB 1356, SB 670 and AB980.

Wieg said while C.A.R.’s efforts to repeal the “degree broker” exemption and require two years of general real estate experience (AB1963) was vetoed by the Governor last year, C.A.R. is taking a different approach this year and working to tighten “degree broker” education requirements through SB 226. Wieg said C.A.R. is working for greater clarification of the education requirement with the Department of Real Estate, and if that is unsuccessful, C.A.R. will sponsor legislation to achieve the desired clarification.

“We hope the Governor will see the wisdom of examining the issue,” said Wieg.

Wieg said through AB 1356, C.A.R. hopes to make it easier for brokers to represent investor purchasers in foreclosure sales. Existing law precludes agents from representing investor purchasers of properties that are in foreclosure. As a result, buyers’ agents are required to purchase a bond for the sale at twice the value of the property. The bill will allow other means of demonstrating financial responsibility.

Most controversial this year, is the issue of prohibition of the private transfer taxes and their disclosure, addressed through SB 670 and AB 980, said Wieg.

Private transfer taxes (PTT’s) are increasingly being used to settle disputes between builders and “no growth” advocates or, in the alternative, by builders to proactively avoid a lawsuit or to smooth development negotiations with the local government. In return for an agreement by an opponent of the development to not pursue a lawsuit, the builder agrees to impose one or more PTTs through a covenant included in the covenants, conditions and restrictions. These PTTs have totaled as much as 1.75 percent of the purchase price of a home and must be paid for 20 to 25 years or, even, in perpetuity. These taxes must be paid by the first buyer and every subsequent buyer each time the home is sold. Even worse, individual homeowners are being solicited nationwide by a Texas firm selling a pre-packaged business plan which imposes a similar deferred “royalty” payment requirement on each subsequent transfer of an individual’s home.

C.A.R. has amended SB 670 to severely restrict the use of these fees and outlaw them entirely when proceeds are used for personal gain or when the fee is not physically or geographically related to the development.

“We have built a consensus that private parties should not be doing this just for financial gain. … Private transfer fees are not smart, but they’re legal and could very well impair a sale. And we don’t want to get into a position where it goes on forever,” the C.A.R. legislative advocate remarked.

This bill is scheduled for votes next Tuesday, May 8th in the Senate Transportation and Housing committee and thereafter in the Judiciary committee.

AB 980 will require a separate disclosure to potential home buyers as to whether the home they are considering purchasing requires the payment of a PTT, the percentage of the home price constituting the PTT, the duration and recipient of the PTT payment, and that it may potentially affect the future resale value of the property.

Wieg also discussed legislation pertaining to rent control jurisdiction, points of sale, including AB1234, which would require that the notice of a regular meeting of a state body be available on the Internet and or in written form to any person, and efforts to place a $25 surcharge on recording fees as a way to be fund affordable housing.

Referring to the latter, Wieg said, “These are laudable goals, but lousy collection, since it would basically be a tax.”

In closing, Wieg urged SAMCAR members to get politically involved, beginning at the local level. He praised SAMCAR’s Governement Affairs Department for establishing strong ties with local officials and the success of C.A.R.’s three-prong approach to legislative affairs.

C.A.R. would like to be the constituency for private property owners, he emphasized. “What can we do? We can educate agents as they come up through the ranks,” said Wieg.

Wieg said working with SAMCAR’s government affairs committee and establishing close relationships with local officials is invaluable because “the real schools for new legislators is in the planning commission, school board, board of supervisors. It’s something you can do that I can’t touch. Have that liaison function with your government affairs committee because that’s where you can make a difference.”

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

For further information, please contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

» Back to Event Coverage

Main PageCareers In Real EstateMember Benefits - REALTOR®Member Benefits - AffiliatesMember Change FormMember ApplicationsBecome a Sponsor

Main PageWorking with a REALTOR®Open Houses/Find a HomeBuyer/Seller TipsFirst Time HomebuyersCommunity InformationCA PropositionsMarket InformationProperty Rights

Main PageREALTOR® Code of EthicsProfessional StandardsDispute ResolutionAdvertising GuidelinesRESPA InformationFile a Complaint

Main PageAbout the FoundationFoundation Grant ApplicationCharitable Events

Main PageNewsletterPress ReleasesReal Estate ArticlesEvent CoverageIndustry NewsCommunications Survey

Main PageLeadershipStaff DirectoryCorporate SponsorshipBylawsMission & Vision StatementPrivacy PolicyGovernanceCommitteesContact UsAffiliates

Main PageView/Edit ProfileEducation HistoryCommittee HistoryPayment HistoryUpload PhotoCell/Email OptionsPay Your Fees Online

Advisories and DisclosuresC.A.R. Government AffairsGreen CitiesGuide to the CitiesGuide to Elected OfficialsGuide to SchoolsLegalLegislative CommitteesLegislative DayN.A.R. Government AffairsProp 60 and 90REALTOR® Action FundREALTOR® AdvocacyRESPASign OrdinancesVideos

Main PageTour PolicyRecipsSign OrdinancesBecome a Marketing Meeting Sponsor

Main PageInsuranceLogos and Graphic StandardsClarus MarketMetricsRESPAREALTORS® Commercial AllianceLicensingDesignation InformationREALTOR® AssociationsMarketingIRS/Tax InformationGlossary/REALTOR® Terms

Main PageEducation2010 Special EventsRSVP (REALTOR® Service Volunteer Program)DesignationsREALTOR Affiliate & Community Service AwardsEvent Coverage