Government Affairs

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Government Affairs is the voice of the REALTORS® in local government. Our goal is to protect the REALTORS® of San Mateo County from ordinances, rules and regulations that would be a hindrance to the success of their businesses.  Government Affairs also works to advance one of SAMCAR's primary objectives: the preservation of private property rights throughout San Mateo County.

The Government Affairs staff informs and advises the Board of Directors and SAMCAR's Legislative Committees regarding pertinent land use and zoning policies, state and federal legislation, and local political issues. In conjunction with SAMCAR REALTORS®, the Government Affairs staff executes the legislative and political directives of the Board of Directors. 

Government Affairs serves as the primary liaison between SAMCAR and the California Association of REALTORS®, and assists with member mobilization for state and federal issues of importance to the real estate industry.

To contact SAMCAR's Government Affairs staff:

Paul Stewart
Government Affairs Director
Phone: (650) 696-8209
Email: paul@samcar.org
 

Follow SAMCAR Government Affairs on

name: SAMCAR GAD | username: samcargad | http://twitter.com/samcargad
 

Now that the first half of the 2011-12 legislative session is over, significant new laws have emerged that may affect REALTORS® and their clients.  Following are some of the new laws involving disclosures, licensing, small claims court, landlord-tenant, and other areas of interest for the real estate practitioner.  The full text of a bill is available at www.leginfo.ca.gov.

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.

DRE Issuing Citations and Fines: Starting January 1, 2012, the DRE can issue a citation and fine up to $2,500 if, upon investigation, it has cause to believe that a licensee has violated the DRE rules, or a unlicensed person has engaged in licensed activities.  The person cited can request a hearing within 30 days from receipt of the citation.  The citation and fine will be in lieu of DRE disciplinary action for the offense cited, and the citation will not be reported as discipline.  However, failure to comply with the terms of the citation or pay the fine within a reasonable time specified by the DRE shall result in disciplinary action and non-renewal of license.  The DRE may also apply to a superior court for a judgment in the amount of the fine and an order compelling compliance.  All administrative fines collected will be deposited into the Real Estate Recovery Fund, which has, under Senate Bill 706, been renamed the Consumer Recovery Account.  Additionally under this law, if the DRE delays the renewal of a license due to a pending disciplinary action, the license will not expire until the results of the disciplinary action are final or the license is voluntarily surrendered, whichever occurs first.  This law also gives the DRE the authority to make public information confirming the fact of certain investigations or proceedings regarding a licensee, and to apply for a court order to enforce a subpoena if a licensee has refused to obey.  Senate Bill 53.

Reporting Broker-Owned Escrows and Securities Qualification Exemptions: Starting July 1, 2012, a broker who conducts escrow activities for five or more transactions in a calendar year under the broker exemption from the Escrow Law, or whose escrow activities are $1 million or more in a calendar year, must file with the DRE an annual report of the number of escrows and dollar volume.  The report must be filed within 60 days after the end of a calendar year in which the threshold is met.  A failure to submit the report will be penalized at $50 per day for the first 30 days and $100 per day thereafter, up to $10,000.  A broker who fails to pay the penalty may be subject to license suspension or revocation.  All penalties collected will be deposited into the Consumer Recovery Account under the Real Estate Recovery Program.  Effective January 1, 2012, this law also requires a broker who files certain information with the DRE for an exemption from securities qualification to submit a copy of that information to any investor who gives funds to the broker in connection with a transaction involving the sale of a series of notes (or undivided interests in a note) secured by real property under section 10237 of the California Business and Professions Code.  Senate Bill 53.

DRE Suspending Largest Tax Delinquents: Commencing January 1, 2012, both the State Board of Equalization and the Franchise Tax Board must periodically make public a list of the 500 persons with the largest tax delinquencies in excess of $100,000.  The lists must include, among other things, each taxpayer’s occupational or professional license numbers.  The DRE and other state governmental licensing entities (with certain exceptions) must suspend and refuse to issue or renew an occupational or professional license for anyone on either tax delinquency list.  Assembly Bill 1424.

Agents Handling Appraisal Issues: Beginning January 1, 2012, a licensee cannot knowingly or intentionally misrepresent the value of real property.  Furthermore, a licensee who offers or provides an opinion of value of residential real property that is used as the basis for originating a mortgage loan cannot have any direct or indirect interest in the property or transaction as defined under Regulation Z (at 12 C.F.R. section 226.42(d)).  A licensee or other interested party is also prohibited from using coercion, extortion, bribery, intimidation, compensation, or instruction to improperly influence a person preparing an appraisal or valuation for a real estate transaction.  Senate Bill 6.

Increasing Small Claims to $10,000: Commencing January 1, 2012, the small claims court jurisdiction will generally increase from $7,500 to $10,000 for an action brought by a natural person.  For a claim of bodily injury from a car accident, the increase to $10,000 will not occur until 2015.  The dollar limit in small claims court for an action brought by a corporation or other entity will remain at $5,000.  Senate Bill 221.

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.

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.

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.

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.

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 thixs law.  Assembly Bill 341.

Tuesday, August 9, 2011
City of South San Francisco: Code Enforcement During Home Inspections
The City of South San Francisco has assigned code enforcement to the SSF Fire Department (SSFFD).  During required home inspections prior to the sale of a home, SSFFD will identify any condition in the home that affects health, safety or constitutes blight.  Depending upon the nature of the infraction, buyers and sellers may find their transactions delayed or otherwise affected until the code violations are remedied.  Please be advised that SSFFD can and will assess fines or other penalties, if warranted.  Below, please find links to additional information about SSF’s code enforcement program, what violations are often cited, and how SAMCAR can assist your agents should they encounter any code enforcement issues that affect the close of escrow.

Please view our full 2-page informational sheet.
Broker/Manager Advisory

Companion materials from the City of South San Francisco are also available at:
Distressed Property Brochure
Point of Sale Brochure
Point of Sale Inspection Checklist
 

Friday, July 15, 2011
CALL FOR ACTION | FHA & Conforming Loan Limits
FHA and Conforming loan limits will drop DRAMATICALLY on September 30. Bank of America has already lowered theirs for new loans, and others will follow suit. Early next week the U.S. Senate will consider amending the Military Construction Appropriations bill to maintain the current loan limits for at least another year. C.A.R. and NAR support this effort. It is imperative that SAMCAR REALTORS® join in the national effort and communicate the need for making the conforming loan limits permanent. Please respond to this Call for Action NOW to urge both Senators to work to maintain the current loan limits through this amendment or some other means. Please spread the word to your colleagues and encourage them to take action.  If you need additional information or have more questions, contact SAMCAR Government Affairs staff at (650) 696-8200.

Friday, July 15, 2011
Governor Signs Bill Providing REALTOR Liability Protection on Disclosures
Governor Jerry Brown has signed into law Senate Bill 837 (now Chapter 61, 2011 Statutes) which provides disclosure liability protection to REALTORS® for water efficiency retrofit requirements. In 2009, Governor Schwarzenegger signed into law a requirement that all residential properties be retrofitted with low-flow toilets, shower heads and faucets starting with remodels in 2014, all remaining homes by 2017. Additionally, all commercial properties and multi-family homes will need to be retrofitted by 2019. SB 837, authored by Sen. Sam Blakeslee (R-San Luis Obispo), adds language to the Transfer Disclosure Statement (TDS) notifying the purchaser of a property of these impending requirements. The inclusion of this information in the TDS will ensure that sellers and buyers are aware of these water efficiency retrofit requirements and provide disclosure liability protection to REALTORS®.  C.A.R. sponsored SB 837.

Friday, June 10, 2011
Carbon Monoxide Detectors Required in All Single Family Dwellings by July 1, 2011
Carbon Monoxide Detectors must be installed, consistent with new construction standards or according to the approved instructions for the detectors, in all existing single-family dwelling units no later than July 1, 2011. All other dwelling units (such as apartments) must have proper carbon monoxide detectors no later than January 1, 2013. (Read more in your Relay on June 10)

Friday, May 27, 2011
NAR Approves 'Opt In' For Franchisor IDX Listings Display Policy
Real Estate brokers will soon be required to "opt-in" if they want their listings to be displayed on the national websites of real estate franchisors like Century 21, Keller Williams and Re/Max under a rule change approved by the National Association of Realtors' board of directors meeting in Washington, D.C. (Read more in your Relay on May 27)

Tuesday, September 21, 2010
Broker Involvement program
The California Association of REALTORS® has recently mailed out a Broker Involvement brochure to all California Brokers. C.A.R. Steve Goddard has made recruiting for this program a priority. NAR’s Broker Involvement program is designed to have brokers easily help mobilize their agents. It’s free and very, very easy.

Details for Broker Involvement can be found here:
http://www.car.org/governmentaffairs/getinvolved/brokerinvolvement/

NAR President's Podcast: Department of Justice Update

“By now, most of you are aware that NAR reached an agreement with the U.S. Department of Justice to [more info] settle the lawsuit over our Virtual Office Website (VOW) policy. I have received a lot of questions from agents and brokers about the settlement – what it means and when it will take effect...” The President's podcast available at the link above explains the settlement in simple terms, and what you will need to do to comply when the agreement is finalized later this summer.

Effective July 1, 2009, the Department of Real Estate will implement fee changes which will increase real estate license examination, original real estate license, and real estate license renewal fees.

The Department has for the past five years maintained fees at the same levels as those charged in 1982.  Despite having taken steps to achieve functional efficiencies and reduce expenditures, the Department must now increase feed to fund its operational needs.

This fee increase will be applied to all examination applications, original license applications and license renewals submitted to DRE on or after July 1, 2009.  With respect to on time renewal applications, the license expiration date determines the renewal fee charged.  In this regard, licenses expiring before June 30, 2009 will be subject to the current fee as long as the renewal application is filed on-time. Licenses expiring on or after June 30, 2009 will have an effective renewal date of July 1, 2009 or later and will be subjected to the new fee.  All renewal applications filed on a late basis on or after July 1, 2009 will be subject to the new late renewal fee.

Renewal License Applications | NEW FEES
Renewal fees are based on the date the renewal license is effective, regardless if the application is filed before the expiration date. Late renewal applications filed in person, filed using the eLicensing system, or postmarked on or after July 1, 2009, will be subject to the new late renewal fees.

A list of all fee increases can be accessed at the following URL:
http://www.samcar.org/userfiles/file/DRE09_feeIncrease.pdf

Point of Contact REQUIREMENT
On July 1, 2009 a new law goes into effect that will require all real estate licensees to put their real estate license identification number (your DRE #) on all point of first contact materials and purchase contract.

Senate Bill 1461 states that a licensee must disclose his or her license identification number (DRE #) on purchase contracts, business cards, stationery, advertising fliers and other materials designed to solicit the creation of a professional relationship between licensee and consumer. The bill excludes an advertisement in print or electronic media and “for sale” signs.

Tuesday, June 23, 2009
2009 Assessment Appeals Information
Enclosed (PDF) is important important information about property tax reassessments in San Mateo County. Please be aware that the filing period to have your application in to the Assessor’s office is July 2, 2009 – November 30, 2009. Click here for more information.

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