Dear CAR Member,
Happy New Year!
We ended 2014 with a lot of good news, and now we’re starting 2015 with another piece of good news. Earlier this month, President Obama announced that HUD will lower its FHA mortgage insurance premiums by 50 basis points, from 1.35 percent to .85 percent, effective Jan. 26. This move will make it easier for hundreds of thousands of home buyers to get a mortgage and provide greater access to homeownership for historically underserved groups and credit-worthy families. On a $300,000 loan, that could mean a savings of $1,500 a year. If you’re currently working with a buyer whose loan closes toward the end of January or early February, their lender should be able to cancel their loan’s FHA Case Number and reapply for a new one at the new rate. See HUD’s Mortgagee Letter.
A new year always brings with it new laws. A number of laws went into effect on January 1, 2015, that affects you and the real estate industry. Below are some of the laws that may affect REALTORS®.
- No record retention requirement for text messages and tweets: Effective Jan. 1, 2015, this new law, sponsored by C.A.R., excludes electronic messages of an “ephemeral nature” such as text messages, instant messages, and tweets (unless designed to be retained or to create a permanent record) from typical transaction record retention requirements. The new law, however, does not clearly exclude emails from record retention requirements. (AB 2136)
- Agency disclosure expanded: Effective Jan. 1, 2015, this law extends agency relationship disclosure requirements to include transactions involving the sale or lease for more than one year of commercial real property. (SB 1171)
- Email address collection by CalBRE: Effective Jan. 1, 2015, this C.A.R.-sponsored law allows CalBRE to communicate with licensees in a cost-effective and efficient manner by requiring real estate brokers and agents to provide the commissioner with his or her current office or mailing address, current telephone number, and current electronic mail address. (AB 2540)
- Team Names and Fictitious Business Names: Effective Jan. 1, 2015, this C.A.R.-sponsored law provides that team names are now authorized for use under the California Business and Professions Code. (AB 2018)
- Auctions and Shill Bidding: Effective Jan. 1, 2015, prohibits lenders or auction companies from requiring the homeowner or listing agent to defend or indemnify the auction company for liability resulting from the lender’s or auction company’s actions. Effective July 1, 2015, prohibits “shill bids” with the exception of a “seller bid” with full disclosure. (AB 2039)
See a full list of all the relevant new laws.
On a serious note – earlier this month, an unfortunate incident
occurred with a Sacramento-area real estate professional, who was kidnapped at gunpoint during a showing. Luckily, she managed to escape and was not physically hurt. This is a good time to remind you about the importance of REALTOR® safety. Many prospective buyers are complete strangers, making you extremely vulnerable. C.A.R. and NAR have many resources where you can turn for tips to stay safe. C.A.R.’s online CE course, “Conducting Open Houses and Developing a Safety Plan” teaches you how to implement practical steps to protect yourself while working with and meeting clients, at the office, and even when you are at home. The course is available to you at no cost with the 12 FREE Hours of Online CE that you receive each year as a C.A.R. member. And be sure to check out this REALTOR® Safety video giving safety tips when conducting open houses. You can even help your clients stay safe with C.A.R.’s latest One Cool Thing infographic, which gives home sellers safety guidelines during an open house.
The start of the year also brings a new, free C.A.R. member benefit – zipForm® Mobile. Now you can access zipForm® from your smartphone or tablet on the road at no cost. You can quickly add, edit, and view forms, create new transactions, and apply templates. With the built-in TouchSign™ feature, you can have clients sign directly on your tablet! zipLogix Digital Ink® and DocuSign® are integrated into zipForm® Mobile, making it easy to send your documents off for digital signatures from anywhere you are. Not familiar working with zipForm® Mobile? Attend a free upcoming webinar to learn how to stay connected with your important contracts or get more details.
Finally, your C.A.R. Leadership Team will be on the road visiting with as many of you as possible at your local association or place of business. Until then, best wishes to you in the New Year.
Sincerely,
Chris Kutzkey
2015 President
CALIFORNIA ASSOCIATION OF REALTORS®