Update! AB 2364 was defeated!!!

Great news! AB 2364 (Bloom and Chiu) was defeated! It only secured 25 Yes votes, with 36 Assembly members voting No and the remainder Not Voting. All members of the Assembly were present, so those not voting did so intentionally.

This was an important victory for our fight to protect future real estate investments and private property rights.

As you know, C.A.R. opposed AB 2364 (Bloom and Chiu), which deterred property owners from returning to the rental housing business for 10 years. AB 2364 would have significantly weakened the Ellis Act by discouraging new rental housing investment and would have ultimately made the state’s housing crisis even worse.

 

 

 

Red Alert on AB 2364!

MCAR Members,

C.A.R OPPOSES AB 2364 (Bloom and Chiu), which deters property owners from returning to the rental housing business for 10 years. AB 2364 significantly weakens the Ellis Act by discouraging new rental housing investment and will ultimately make the state’s housing crisis even worse. AB 2364 will be considered by the entire Assembly this week.

Action Item

Call 1-800-798-6593 and enter your NRDS ID or the PIN number for your legislator followed by the # sign

to be connected with your legislator’s office.

Ask your Assembly Member to vote NO on AB 2364.

 

Issue Background

In 1985, C.A.R. successfully sponsored the Ellis Act, which is a bipartisan comprise reached by the Legislature to allow rental property owners to go out of business. Prior to the Ellis Act, unlike any other business, rental property owners were forced to stay in business, even when subjected to extreme financial conditions. The Ellis Act provides a reasonable solution that gives certainty to both rental property owners and tenants alike.

Specifically, the Ellis Act requires a property returned to the rental market before a 5-year period expires to include any deed-restricted or rent-controlled units previously located on the property. C.A.R opposes AB 2364 because, among other things, it seeks to weaken the Ellis Act by discouraging rental property owners from returning rental units to the market by effectively extending this 5-year period to 10 years.

 

Why C.A.R. is opposing AB 2364

Discouraging investment in rental housing is bad policy. AB 2364 will have a chilling effect on the state’s housing supply crisis. Substantially diminishing a rental property owner’s ability to return their property to the market will not only limit the number of available units but also adversely affect property values and the ability to finance property.

Rental property owners cannot see TEN YEARS into the future. Existing law sets reasonable and foreseeable standards for rental property owners and tenants. AB 2364 imposes unreasonable constraints on rental property owners who simply want to return their property to the market after 5 years.

Learn More

 

 

 

New NAR Ethics Testing Requirement

Change of Code of Ethics Training Requirement From Quadrennial to Biennial
The requirement for REALTORS® to complete Code of Ethics training changed to a biennial requirement (every two years) in November 2014 by action of the National Association’s Executive Committee and Board of Directors. This change originated as a recommendation from the REALTOR® of the Future Work Group. The first biennial cycle began January 1, 2017 and will end December 31, 2018. More information and background on the new two-year requirement can be found here.
About the Training Requirement
REALTORS® are required to complete ethics training of not less than 2 hours, 30 min. of instructional time within a two-year cycle. This biennial cycle will end on December 31, 2018 giving MCAR members roughly 9 months to complete the course to ensure compliance. As of today, roughly 1100 MCAR REALTOR® members have yet to complete this training requirement. The course is free and can be completed online by clicking here.
What happens if a REALTOR® doesn’t meet the training requirement on time?
Failure to meet the requirement for a given cycle will result in suspension of membership for the first two months (January and February) of the year following the end of any cycle or until the requirement is met, whichever occurs sooner. On March 1 of that year, the membership of a member who is still suspended as of that date will be automatically terminated.
Please do not hesitate to reach out to us with any questions you may have or to inquire as to the status of your compliance for this cycle.
-Kevin

It is Not Too Late to Influence Congress on Tax Reform

Call for Action
Thanks to our members’ engagement, REALTORS have helped positively influence tax reform in some key areas.  For example, both the House and Senate have agreed to maintain deductibility of state and local property taxes up to $10,000, and to maintain Section 1031 tax-deferred exchanges in their present form for real estate investments.

BUT OUR WORK IS NOT DONE.  We still have an opportunity to influence Congress to help make the tax reform bill more favorable to homeowners and consumers.  Now that both the House and Senate have passed The Tax Cut and Jobs Act, a Conference Committee will begin to address the differences between the two bills. Important improvements in the legislation are possible by encouraging Congress to maintain the current law for the mortgage interest deduction and capital gains exclusion.  Retaining current law makes the bill more favorable to homeownership.

Take action to tell Congress to protect middle-class homeowners.
Click here to take action

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Documentation

Important: Carmel By The Sea Change in MLS Coming

Carmel by the Sea Change, Scheduled for March 1, 2017

History:

Since its incorporation October 31 of 1916, Carmel by the Sea has remained a unique creation in Monterey County. From its famous mayors, coveted landscapes, to its refusal to identify street addresses, these qualities have become the marketing banner of Carmel-by-the-Sea (‘CBTS’).

However, these features also bring unique challenges for real estate professionals and the MLS in integrating this one-of-a-kind creation which in many ways can be considered an appendage to the greater Carmel communities such as Carmel, Carmel Valley and Carmel Highlands.

REALTOR® and MLS Challenges:

The greatest challenge to real estate professionals with CBTS is consistency. Because the city may or may not show up in an intended search, CMAs, statistics, agent search and all IDX vendor services can be negatively impacted. CBTS listings can be lost to potential buyers and opportunities diminished for sellers in the highly specific CBTS search fields.

The Proposal:

At the behest of the Monterey County Association of REALTORS® Super Users and Review Group, (SURG), MLSListings is working toward the implementation of a removal of CBTS as a search field to include it within the broader classification of Carmel. This means, all history and property details would fall under the Carmel umbrella. No information would be lost, only reclassified.

Over the past few years the vast majority of listing agents chose to classify their CBTS listings as Carmel, consequently undermining the CBTS classification.

The Repercussions:

As it stands today, agents have to search in both Carmel and CBTS in order to obtain a comprehensive list of properties available for sale in CBTS. Our goal is to simplify the search process for both agents and the public.

The removal of CBTS carries the requirement for agents to list under Carmel. Forms, histories and all records would move to Carmel. Essentially, all CBTS properties current and past, will be renamed, Carmel. CBTS will no longer be searchable in the system.

The wider net would provide an inclusive and consistent search environment for brokers and agents. The marketing panache of CBTS would have to appear in remarks or in other selling collateral. Or you could search the four MLS areas currently within CBTS as these will not be going away, or search by Zip Code.

As with most technology updates on a larger scale, an adjustment period, additional education, training and mass communications to those in the area would be required.

The change would usher in some controversy; however, the SURG members feel this long term change will improve accuracy in listings and search for the area.


Carmel-By-The-Sea Removal Q&A

Question: I understand that Carmel By the Sea will no longer be a city selection option for entering properties. I have some questions.

 

Q: What happens to my listing which designates Carmel by the Sea as its city?

A: When the system is updated to remove Carmel by the Sea as a City, those listings will retain their current CBTS Zip Code but the city name will be changed to Carmel.

 

Q: What will happen to all of the history records that have Carmel by the Sea as their city?

A: In order for the change to be consistent, all history records that have used the City name “Carmel By The Sea” and/or the Zip Code for it will have their City name changed to “Carmel”. They will retain the CBTS Zip Code.

 

Q: How will this impact property searches for listings now labeled as Carmel by the Sea?

A: After the change, you will be able to search for listings in the four designated areas of Carmel By the Sea or by using the Carmel By the Sea Zip Code (93921).

 

Q: What is the benefit of removing CBTS as a City?

A: The benefit is to provide greater consistency in statistics, market analysis, and every day searches, eliminating the redundancy of property searches in both cities.

 

Q: If my client still wants to market their listing as a CBTS listing, how can we do that?

A: Listing agents and brokers can still market the listing as a CBTS listing by including a comment in the Public and Private Remarks field.

 

Q: What does this mean for listings that are distributed to public sites like Zillow?

A: When an external vendor receives an update from MLSListings after the change, listings that had CBTS as the city will now have Carmel.

 

Please don’t hesitate to contact us with any questions or comments you may have regarding this change as your feedback is certainly welcome.

 

 

 

Updated Housing Market Forecast for 2017, Bump in Sales and Price

Interesting information out of the California Association of REALTORS® who released an updated Housing Market Forecast for 2017.

Data suggests a continued uptick in sales and price. Also included here is the December 2016 Market Snapshot for Monterey County which provides a well presented 2 year historic reference for sales, price, inventory and days on market.

Fraud Alert

MCAR Members:

We know of at least one instance in which a buyer was solicited by an individual posing as a representative of a reputable bank. The impersonator collected the personal information from the buyers and subsequently provided them with what appeared to be a legitimate pre-approval letter. The buyers received an accepted offer from a seller and began the escrow process. When the matter of good faith deposit came up, the buyers notified their agent that funds in the amount of $15k had already been wired to the “lender” to an account based in Southern California. The “lender” had insisted it was customary for them to retain the good faith deposit, directly, as a means of making sure any missed payments could be drawn from that account.

Please make sure your clients and all parties involved in a transaction are fully aware of who, specifically, they are dealing with (Broker, lender, title etc.) and how the process of a real estate transaction typically unfolds.

Please let us know if you see or hear of anything suspicious as we continue to coordinate directly with the Monterey County District Attorney’s Office on these matters.