C.A.R. Business Meeting Report San Diego, January 2014

The California Association of REALTORS® held its first of three business meeting of the year in San Diego. Seventeen of our NSDCAR members represented you in the C.A.R. decision making process. Ron Brownell of Real Living Lifestyles in Escondido serves as the Region 29 Chair heading your NSDCAR contingent, and Bob Pahlke of Berkshire Hathaway HomeServices California serves as Assistant Chair. These members are contributing their time on your behalf to attend the C.A.R. business meetings. Their reports follow, along with the name of the committee member and his or her email address. Please feel free to contact any of these members for additional information, or CEO Dianne McMillan (Dianne@nsdcar.com) or Government Affairs Director Ernie Cowan (ernie@nsdcar.com), or phone us at the Association’s Administrative Office (760) 734-3971.

BUSINESS TECHNOLOGY FORUM

Do you know the difference between electronic signatures and digital signatures? The difference is validity. Electronic signatures do not authentic signatures where as digital signatures are bound to a specific individual. DocuSign, Digital Ink and Touch Sign all use the authentic digital signature format. Identity verification is used to establish a “KBA” Knowledge Based Authentication to determine if the end user is in fact who they say they are. For paperless transactions, be sure to use signing products that authenticate digital signatures. Good news! ZipForms Plus is now offering eSign & DocuSign features on forms like the SPQ and the TDS. All fields are pre-tagged including the comments section. For training videos & schedule of webinars visit: http://www.car.org/tools/zipform/ You can now easily host an online meeting with your busy clients. Zip Consult is a free and

unlimited web conference meeting solution. Invite your client via email to share your screen and review documents together online. You can invite up to 200 people to share your screen as a webinar or conduct face-to-face meetings with up to six people. All this is free with your C.A.R. membership. Google Tools for Real Estate. For the most part, the solutions that Google offers are free. But it’s important to thoroughly complete your Google profile. It’s as simple as filling out your contact info on a Google + page to improve how you’re found online. Marci James from Obeo.com gave us several tools to use offered by Google and most are free: • Google Drive – First 5G are Free. Document

storage. Share spreadsheets. Free programs comparable to Word, Excel and PowerPoint.

• Google Voice – Free Local number and have it call to any phone. Work, Home, Cell. Transcribes Voicemails and allows you to forward calls to another number. You can also customize voicemails greeting to specific contacts, i.e., clients or agents.

• Google Alerts – Monitor yourself online. Set up a query for your name and your city to follow

Carol Farrar 1850 Realty (760) 593-7393

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Kim MurphyMurphy & Murphy Southern California Realty(760) 415-9292kim@murphy-realty.com

FORUM ON FORMS

HOUSING COMMITTEE - INVESTMENT

put some “teeth” in the bill. The action approved by the Directors is: That C.A.R. “SPONSOR” legislation to provide greater clarity in common interest development transactions by establishing more specific document delivery and disclosure standards and to tighten the anti-bundling provisions created in C.A.R. sponsored AB 771 of 2011. Elections for CID’s – Report Only AB 968 (Gordon) Directors Election Process for Small CIDs allows a CID with 15 units or less to operate an election of the BOD in a simplified manner. One third of all CID’s have 15 units or less. C.A.R. is in favor. AB 1360 (Torres) Electronic Voting in CID Elections would allow HOAs to make electronic ballots available to members. C.A.R. supports the bill as it offers a more efficient voting process for CID elections. There is a problem with apathy of homeowners and lack of involvement, which this will hopefully help. Both of these bills succeeded in the second house and will likely be discussed late February or early March. Federal: Federal Housing Administration (FHA) Condo Policy – Action Taken Should C.A.R., in conjunction with NAR, “support” an easing of the Federal FHA Condo Requirements. Since the laws changed in 2010 for the certification of Condos for FHA Financing, it has become a struggle to get a condominium complex certified. The percentage of requests denied in 2011 was 20%. In 2013 it was a 60% denial rate. When this change occurred it was implemented in two phases. Phase one was more lenient than the permanent FHA Condo certification requirements. C.A.R. took a position of supporting the more

lenient phase and has not taken a position since. NAR has been working with other trade associations on this issue in Washington. Our C.A.R. staff and leadership wanted to hear the desires of the Directors on this issue. Note: 75% to 80% of all FHA loans are for First Time Homebuyers, who typically will buy a condominium. Not making FHA financing available makes their purchase more limited, as well as possibly having an effect on the value of the complex with the influx of cash investment buyers. The following was approved by the Directors: That C.A.R., in conjunction with NAR, “SUPPORT” an easing of FHA condominium requirements that include, but are not limited to: a) extending the time between re-certification; b) simplifying recertification process; and c) mirroring Fannie Mae’s and Freddie Mac’s condo requirements. Housing Policy State: Veterans Housing and Homeless Prevention Bond Act of 2014 – was placed on the ballot in late 2013 by AB 639 (J. Perez). The measure proposed to amend the Veterans Bond Act of 2008 (Prop. 12), which authorized $900 million in general obligation (GO) bonds for Cal Vet Home Loan Program. The funds have barely been used with a handful of Veterans using the program. This measure would reallocate $600 million of those bond funds to be used to construct, rehabilitate and preserve affordable multifamily and transitional housing for vets and their families. It would have specific focus on homeless veterans or those veterans at risk of homelessness. This was presented to the Directors to determine if C.A.R. should support it (Proposition 41). The discussion was very active with views being shared on all positions. It was determined that the Directors should receive greater details on the June 3, 2014, Proposition before determining our position. This will be done at the April/May meetings.

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Federal: Online Auction Platforms and Potential Negative Impact Auction platforms (i.e., auction.com) are being utilized more by mortgage servicers. This is a growing issue in a shrinking situation of distressed transactions, such as short sales. C.A.R. legal reported on this and solicited any feedback on whether buyers have actually been required to pay a 5% fee to the auction company. It has been reported this may be required, which may not be permitted under FHA guidelines. Further investigation will be conducted by staff. Manufactured Housing AB 692 (Torres) Mobile Home Park Purchase Fund Modifications – Favored by C.A.R, not yet heard AB 1205 (Wieckowski) Mediation Program for Mobile Home Parks – Favored by C.A.R., hasn’t moved. LEGISLATIVE COMMITTEE Sandi Adelson Homeland Properties (760) 591-3090 ext 104 sandi_does_real_estate@hotmail.com I. Reports: A. MEMBER MOBILIZATION - DeAnn Kerr 1. C.A.R. has the staff to come to office meetings

to get the word out on how every member can help. Some of the things you can do is sign up as a Legislative Liaison, watch and respond immediately to “Red Alerts” from both C.A.R. and NAR.

2. Brokers can register for the Broker Involvement Program that will send the broker/manager an additional email asking to

get the agents in the office involved by responding to the “Red Alert.”

3. There is a Consumer Education Program with materials for agents to forward to clients to mobilize them to help fight the fight of property and ownership rights. REALTORS® are asked to go the C.A.R. website and take a look at what’s there.

4. This year’s Legislative Day in Sacramento is April 30 and Governor Brown has been invited to address the attendees.

B. Update from Alex Creel (Executive Vice President and Chief Lobbyist) and Stan Wieg (Staff Vice President and Legislative Advocate): 1. C.A.R. received a letter from the California

State Franchise Board clarifying that properties sold in a short sale are not subject to state income taxes on the debt forgiveness. Meanwhile, Senator Barbara Boxer received a letter from the I.R.S saying that debt written off in a short sale does not constitute recourse debt in California and therefore does not create a cancellation of debt for I.R.S. tax purposes. C.A.R.’s article on this can be found at

www.car.org/newsstand/newsreleases/2013releases/ftbclarification PLEASE REMEMBER NOT TO GIVE TAX ADVICE AND REFER YOUR CLIENTS TO THEIR TAX PROFESSIONALS. 2. SB426 - On a non-deficiency loan that has been

foreclosed not only can the lender not sue for “uncollected” balances, now the lender is prohibited from even trying to make an arrangement for repayment or try to collect in any way.

3. SB822 – This one will come as a shock…Altering, destroying, and/or mutilating records is illegal.

4. HOA - Managers are not contractors. 5. Tax deferred exchanges taking proceeds out of

state will be required to file state tax forms 7

every year until gain is recognized and all applicable taxes are paid.

C. Sponsored Legislation by the Committee Chair 1. An anti-squatters bill defining unlawful entry

and occupation and making it a felony for refusal to leave when asked by the owner or the owner’s representative.

2. To mandate that all required notices regarding “rulemaking activity” be posted in one location within the Office of Administrative Law’s existing website.

3. Debt Forgiveness – Because of the Franchise Tax Board and I.R.S. letters, C.A.R. will not pursue sponsoring any legislation on short sales. However, further investigation will be done to determine whether federal and state legislation needs to be pursued for loan modifications and certain foreclosure actions.

II. Action Items - Ballot Propositions A. Proposition 41 – Veterans Housing and Homeless Prevention Act of 2014, Legislative Constitutional Amendment – This amendment, if passed would take approximately $600,000,000 of the approximately $1,100,000,000 CalVet funds, funded by previous ballot measures, and use those funds to “construct, rehabilitate, and preserve affordable multifamily and transitional housing for veterans and their families, with specific focus on homeless veterans or those veterans at risk of being homeless.” The argument in favor of doing this is that approximately $500,000,000 would still be available to make CalVet loans. Because of the loan interest rates, the CalVet program has not been as popular with qualified home buyers. It was an emotional debate on the issues. Nobody wanted to speak against the motion without making it clear that speaking out against it was not speaking out against veterans. Several vets and family members of vets (one woman was the wife, sister, daughter

and granddaughter of a vet) spoke out against this because the funds are available because voters passed the bonds to fund home ownership for vets. Interest rates are not going to remain at these low levels and vets will once again be looking to CalVet for financing. There have been times in the past when CalVet has run out of money. If the well were to run dry because of this proposal, CalVet would have to bring forward a proposition to pass another bond. Also, at issue was the fact that the bonds sold to fund CalVet are repaid as the vet makes his house payments. The repayment of these bonds, if they are used under this proposal, is not clearly defined. One opponent went so far as to say that if the proposition is read completely, which few had done, it makes the State of California a guarantor of the debt to be paid from the general fund. With a large budget deficit still existing, this may not be what is needed at this time. The motion was passed in the committee and was also passed in Executive. On the floor of the B.O.D., one of the very outspoken opponents made a motion to table the issue until the April meetings and to have a more complete briefing paper distributed to us prior to the meeting so that a more educated debate can take place. The motion was passed. A little later a motion was brought to the floor to reconsider the tabling of the matter and to vote on the issue right then. More emotional debate was had but in the end, the second motion failed and the issue will come back at the Sacramento meetings. More information can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/lc114/786347/ B. As yet number Proposition – Public Information, Legislative Constitutional Amendment – Local and state agencies and governmental bodies are required to 1) allow review of records by the public and 2) make meeting times, locations and discussion items available for participation and comment in advance of any

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scheduled meeting or hearing. However, currently the state is required to reimburse entities for the costs of doing this. The fact that the state does not have the funds and has not budgeted for reimbursement is being used as a way not to comply with the postings. This proposition would mandate that agencies and governmental entities must comply whether funds are available or not. A motion was passed to take a “FOR” position on the proposition. The Board of Directors passed the motion. More information can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/785653/785469/ C. PROPOSITION NUMBER PENDING: Referendum to Overturn Indian Gaming Compacts Summary: In August 31, 2013 California and the Mono Indians signed an agreement allowing a casino, through 2033, with up to 2,000 gaming devices on land provided in Madera County as an alternative to land they already had, but which was not held by the tribe and because the land was near environmentally sensitive areas near Yosemite National Park. The tribe will be required to pay a 10% and increasing to 15%, of its Annual Net Win from the gaming devices for non-gaming tribes, local mitigation, state regulation, and mitigation to the Wiyot Tribe. On March 20, 2013 California and the Wiyot Tribe also entered into a similar agreement in which the tribe, in exchange for 3.5% of the gaming revenue for the Mono Indians' facility in Madera County, agreed to forgo building a casino on its lands due to their proximity to the Humboldt Bay National Wildlife Refuge. In 2013, the legislature ratified these agreements with the passage of AB 277 (Hall), which would have taken effect on January 1, 2014. However, this proposition is a referendum to AB 277, which will now only take effect if the ballot measure is approved by the voters. The Leg

Committee took a “NOT REAL ESTATE RELATED” POSITION and the Board of Directors approved the position. Additional information on the proposition can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/lc114/785471/ III. Reporting Committees A. HOME OWNERSHIP HOUSING COMMITTEE The committee brought Leg a motion, “That C.A.R. “SPONSOR” legislation to provide greater clarity in common interest development transactions by establishing more specific document delivery and disclosure standards and to tighten the anti-bundling provision created in C.A.R. sponsored AB 771 of 2011. Without any discussion, the motion was passed and sent to Executive Committee. For more information please read the Home Ownership Housing Committee Report posted and/or go to http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/lc114/786591/ B. TAXATION AND GOVERNMENT FINANCE The committee brought Leg a motion, “That C.A.R. “support” legislation to study the revenue impact of allowing homeowners to transfer their property tax basis to a home anywhere in the state.” Without any discussion, the motion was passed and sent to Executive Committee. For more information please read the TAXATION AND GOVERNMENT FINANCE posted and/or go to http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/785653/789314/ C. TRANSACTIONS AND REGULATORY COMMITTEE The committee brought Leg 5 motions (for more information please read the Transaction and Regulatory Committee Report posted or reference the link provided for each item):

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LAND USE & ENVIRONMENTAL andLOCAL GOVERNMENT FORUM

The Committee focused, instead, on increasing the skill level of the local Associations’ professional standards committees. It focused upon training professional standards committee members in the skills required to conduct disciplinary hearings with due process and, where violations are found, impose appropriate punishments. In other words, the committee is plowing old ground. The Code of Ethics is our Code. We wrote it because we wanted to be known as public servants, not public enemies. “The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.” “Competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations.” That’s the standard we all chose when we chose to call ourselves REALTORS®. What follows is the Preamble to our Code of Ethics and Standards of Practice. Are we living up to our own standards? In the end, our reputation is up to us. Let’s do our best to make it a good one: PREAMBLE: “Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.”

“Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.” “In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®. (Amended 1/00)” “Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage

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10. Document the File - Remember to record conversations and events via a communication log and confirming letters before the close of escrow.

9. Own the Transaction- Follow- up by the real estate licensee is key. Be mindful about the types of tasks that are necessary or appropriate for the real estate licensee to handle, versus those that may be delegated to a transaction coordinator or an unlicensed assistant.

8. Remember that the Seller serves as a Gatekeeper -The historical work-up should be passed on to the buyer- e.g., by using the C.A.R. Seller Property Questionnaire (SPQ).

7. Disclose it All - Do not sugar coat. 6. Write Clear Agreements. If you are unsure

about whether drafted language is clear enough, you may want to have another person in your office review it and provide feedback.

5. Educate the Principals in the Transaction- Benjamin Franklin said, "There are no disappointed pessimists.”

4. Educate Yourself. 3. Constant Communication with clients, escrow,

the title company, and others. 2. Create Lifetime Relationships-Be the faithful

fiduciary. 1. Integrity- Follow the Golden Rule.

Gov Hutchinson gave the following legal update: Low flow toilets will be required by 2017, and 2013 if you do a major remodel. New Transfer Disclosure will be published July 2014.

TAXATION & GOVERNMENT FINANCE COMMITTEE Sandi Adelson (for Peggy Yeomans) Homeland Properties (760) 591-3090, ext. 2014 sandi_does-real-estate@hotmail.com

(This report is submitted in loving memory of Peggy Yeomans who passed away on 01/27 after a long and valiant fight against cancer. Peggy served as our representative to this important C.A.R. committee for many years, bringing back important information for the benefit of NSDCAR members.) I. STATE TAXATION ISSUES A. ACTION ITEMS: 1. Property Tax A recap of the report from the October meetings was given with respect to Florida allowing homeowners to transfer their property tax basis, the similarities and differences to California’s Propositions 60 and 90 and what the financial impact is on tax revenues. Unfortunately, while the numbers and sizes of such transfers have been collected, the revenue impact of portability has been ignored. It is this impact that would aid in passing or torpedoing any effort to pass legislation making the portability mandatory statewide, rather than an opt-in transfer. C.A.R. has supported AB 1172 (Bocanegra), which would expand portability statewide. Now, it appears as though, mainly due to the financial impact issue preventing any hope of passage, Assemblyman Bocanegra is considering amending the bill to call for an impact study rather than expand the portability at this time. The question put to the committee was whether C.A.R, should continue to support the portability issue and, if necessary, find another bill if AB 1172 is amended or should we support the bill if amended. A motion was made, it received a second, and was passed with little conversation other than clarification. The following motion will go forward to the Legislative Committee: “That C.A.R. “SUPPORT” legislation to study the revenue impact of allowing homeowners to transfer their property tax basis to a home anywhere in the state. More information can be found at

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http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/785653/789316/ 2. Government Finance PUBLIC INFORMATION BALLOT PROPOSITION Before the discussion on proposition began, we were given a short lesson on Constitutional Laws versus Statutes. Constitutional Laws contain fundamental rights, amendments must be approved by the people, and no law can be enacted by the legislature that contravenes the Constitution. By contrast, statutes either grant legal rights or prohibit specified actions, are enacted by the legislature, and local governments and agencies are reimbursed for the cost of compliance. If this as yet numbered proposition were to pass, local governments and agencies would be mandated to comply with existing requirements to: 1) allow review of records by the public and 2) make meeting times, locations and discussion items available for participation and comment in advance of any scheduled meeting or hearing whether or not the state reimburses for the cost. Currently, the fact that the state does not have the funds and has not budgeted for reimbursement is being used as a way not to comply with the postings. A motion was passed to take a “FOR” position on the proposition. The committee’s support will be sent to the Legislative Committee as a report item. More information can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/785653/785469/ II. DIRECTION REQUESTED: Transaction Tax DEBT FORGIVENESS PROTECTIONS On the federal level, the budget solutions passed to avoid the "fiscal cliff," included an extension of the debt forgiveness to January 1, 2014. On the state level, the protection expired December 31, 2012, and C.A.R. sponsored SB 30 and AB 42 that would have had California law conform to the federal

guidelines. In late 2013, C.A.R. received opinion letters from the Internal Revenue Service to Senator Barbara Boxer and one from the Franchise Tax Board to C.A.R., clarifying that under California law, debt forgiven in a short sale is not subject to income tax by the federal or state governments. I.R.S. Code 580E includes junior loans and it is silent on owner occupied versus non-owner occupied loans. Code 580A&B addresses owner occupied loans only. Because of the opinion letters, C.A.R. ceased the pursuit of SB 30 and AB 42. What is not protected in the opinion letters, but was in the federal and state laws, was unrealized income from loan modifications. The issue brought to the committee was whether or not C.A.R. should pursue state and/or federal legislation to seek debt forgiveness protection for loan modifications. The majority of the comments from members of the committee were that in the real world of loan modifications, the lenders were not forgiving any of the loan, they were adding the amount to the back end of it. Because of this, it was the consensus that no action should be taken and we should “stay with what we have.” III. UPDATES: 1. Property Tax SPLIT ROLL TASK FORCE At the October meetings, the committee recommended that the C.A.R. President appoint a task force to look at split roll tax policies and related issues. In December, a nine-member task force was appointed and by the time this report is published, it will have held its first meeting in San Diego. B. Government Finance NEW1031 EXCHANGE FILING REQUIREMENTS Effective January 1, 2014, all taxpayers completing a 1031 exchange going from California property, to property outside of California will have to file a

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new information return (California 1031 information return) to track their deferred gain or loss. The information return will generally be required to be filed annually until the deferred gain is recognized. The new law is intended to keep track of California sourced gain deferrals from 1031-exchanges. D. REPORT ITEMS: There are were no changes in status with regard to the bills C.A.R. is tracking; see the Fall 2013 meeting information at http://www.car.org/meetings/carmeetings/committee-materials-archive/2013fall/agda1013/767803/ III. FEDERAL TAXATION ISSUES Updates: A. Government Finance 1. TAX REFORM Both the Senate and House intend to introduce tax reform prior to the end of the year. As with past indicators, everything is on the table including real estate tax provisions. Washington agrees that tax code reform Republicans believe it should be revenue neutral, while Democrats believe it should raise revenue. Until some kind of compromise can be agreed upon, nothing will reach the President's desk. 2. EXPIRING TAX PROVISONS Congress has allowed a number real estate related tax provisions to expire when they adjourned for the year without passing a tax extenders package. These provisions include: a. Mortgage debt forgiveness (for California the issue has been addressed by the I.R.S. letter for short sales but not for loan modifications) b. Energy efficiency improvements on residential properties c. Energy efficiency for new buildings

d. 15-year leasehold improvement will go back to 39-years, e. Deductibility of mortgage insurance premiums f. Three-year depreciation for race horses two years old or younger. While these may be extended, there will probably be reductions. B. Commercial Investment 1. CORPORATE TAX REFORM Most of the announced changes are in the area of international corporate taxation. At this time, there is nothing to address many small business issues, such as pass through entities (S corporations). Proposals coming out of the Senate would affect current tax provisions for commercial real estate, including: a. Repeal section 21031 of the tax code, known as like-kind exchanges b. Extending depreciation periods for real estate to 43 years c. Repeal of section 179 real property expensed in the year purchase d. Repeal of Section 179D that provides a deduction for energy-efficient commercial building property. It should be understood that there are no measures pending and none have been introduced. 2. COMMERCIAL LOANS S.289, the “Commercial Real Estate and Economic Development (CREED) Act of 2013” bill, was introduced in February. If passed it would allow small businesses to refinance qualified owner-occupied loans with balloon mortgages due between 2013 and 2016 through the SBAs 504/CDC refinance program. NAR strongly supports the CREED Act. 3. LEASE ACCOUNTING There have not been any new lease accounting standards issued. Meetings continue to review

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comments and feedback. Additional information can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2014winter/785653/789314/ TRANSACTION & REGULATORY

This committee is a policy committee. Our mission is to develop C.A.R.'s overall policy agenda as it relates to the practice of real estate. It has original jurisdiction to evaluate transactional issues, legislative and regulation in the following issue areas: licensure, liability and risk management, real estate finance and transactional. The committee has an open forum for discussion on many topics that affect our industry. We take "Action" on specific topics or items that we believe require immediate attention. At this meeting we recommended to the C.A.R. Board of Directors the following actions, which the Board then adopted: (Note: CalBRE stands for California Bureau of Real Estate, formerly known as the Department of Real Estate, or DRE) • That C.A.R. "Sponsor" legislation to empower

CalBRE to collect email addresses. • That C.A.R. "Sponsor" legislation to clarify the

rules for CalBRE to regulate the use of "Team" names by licensees. The clarification should be consistent with existing CalBRE policy on advertising and team name rules, with further amendments to be considered during the May Board meetings.

• That C.A.R. "Sponsor" legislation to require an auction company to indemnify or "hold harmless" the listing broker in a transaction

against liability that results from the auction company's actions in a short sale transaction.

• That C.A.R. "Sponsor" legislation to prohibit short-lived communication like tweets or text messages from being considered "transactional documents" that must be retained in a broker's file.

• That C.A.R. "Sponsor" a legislative resolution expressing California support for preservation of existing loan limits.

The Committee also formed a working group to explore options related to home inspectors’ contractual limitations of liability provisions and other options necessary to improve home inspection reports and practice; AND a working group to assist in developing policy recommendations related to C.A.R.'s sponsored legislation seeking to establish standards related to CalBRE's efforts to regulate the use of "Team" names by licensees. YOUNG PROFESSIONALS NETWORK (YPN) FORUM

The YPN Forum was held by the C.A.R. YPN Chair, Imran Poladi & Vice Chairs, Reiner Dresser, and Sarah Trent. The mantra for this year is “Ladder to Leadership.” The main focus is to create awareness for young professionals to learn about leadership roles and opportunities within our association at a State and Local level. Education is always an important topic and C.A.R. understands that sometimes it's tough for professionals just getting started to attain advanced designations because of financial costs, which is why they are advocating The Education Foundation.

Kim Murphy Murphy & Murphy (760) 415-9292 kim@murphy-realty.com

Carol Farrar 1850 Realty (760) 593-7393 carol@carol-farrar.com

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The funds vary from $1,000-$2,000 made available to REALTORS® or College Students who have an emphasis in Real Estate that can apply for these grants to cover their expenses. Application deadline is August 1, 2014. For more details go to: http://www.car.org/aboutus/educationfoundation/ The Education Foundation wants to team up REALTORS® helping REALTORS® in an effort to continue raising funds towards the Scholarship program, which granted 15 REALTORS® last year with just shy of $10,000 towards attaining an advanced designation. If you’d like to collaborate with the Foundation for your next event, be sure to reach out to C.A.R. Staff, Lynette Flores at (213) 739-8243. An exciting announcement was made at the 2014 Winter Meetings, YPN has pledged over $1,000,000 towards the REALTOR® Action Fund. One hundred REALTORS® from C.A.R. have taken the pledge to donate $10,000 over the course of their career. The RAF Million Dollar Action Fund gained so much interest that NAR is now adopting the pledge and will begin promotion in the coming months. Special thanks to the YPNer Ryan Asao of Podley Properties in Pasadena who started this campaign in 2013. OTHER INFORMATION OF INTEREST

Legal Cases of Interest: An important part of C.A.R.’s budget helps with legal challenges to the practice of real estate or to property rights. This month, C.A.R. reviewed 7 cases and approved filing amicus briefs in 4 cases.

The subject matter covered: • Galbreath v. Zimmerman on rent control. Case

on appeal. • Marina Pacifica Homeowners Association v.

Lansdale et al. on assignment fees. • Swartz v. Coldwell Banker on broker duty. • Bardack v. Tomjanovich on seller’s indemnity

of a broker. Case on appeal. • All Cities Realty v. Brunet on a salesperson’s

responsibility for the broker’s name. Case to go to trial.

• Bararsani v. Coldwell Banker Residential Brokerage on independent contractor status. Case will go to trial.

• Prahm v. Pickford on procuring cause. Shocking but true. Did you know?: • 71% California homeowners are voters but

36,848 California REALTORS® are NOT registered to vote?

• 25% of all homeless veterans in the nation are in California?

• You can get your CE credit for license renewal FREE from CAR? There are 12 hours of free credit from 25 courses available to you each year. Did you take advantage of this in 2013? Sign up now for 2014 courses. You have one year in which to complete the class. Over 20,000 REALTORS® used the program in 2013.

• You must upgrade to zipForms Plus by June. Your current zipForms will no longer be supported after that.

Thought Leadership Executive Reports: This new C.A.R. program has released its second executive report entitled, “The Future of Housing Finance: Economic and Policy Insights,” featuring insight from high-level experts in economics and finance. It discusses real estate market conditions, mortgage finance, housing policy, and financial

Dianne McMillan, CEO (760) 734-3971 ext. 209 Dianne@nsdcar.com

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recovery. You may access the report at: http://www.car.org/media/pdf/thought-leadership_future-of-housing-finance.pdf. The C.A.R. Directors from your area will be reporting live on key topics following each C.A.R. meeting. Watch for an announcement from your Coordinating Committee for the first in this new program. This report period will cover important information on: • Team names • E-documents in the transaction file (text

messages, tweets, etc.)

• The new RPA and local classes on the new form.

• Important Trust Account Guidelines. Finally, please remember to thank your NSDCAR delegates to C.A.R. who have given generously and unselfishly of their time. If you are interested in serving as a C.A.R. Director in 2015, applications will be available soon. Watch your NSDCAR Quick Facts eNewsletter for the announcement.

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Vista Administrative Service Center906 Sycamore Avenue, Suite 104

Vista, CA 92081(760) 734-3971 Phone

(760) 734-3976 Fax

Carmel Valley Service Center12250 El Camino Real, Suite 118

San Diego, CA 92130(858) 350-1600 Phone

(858) 350-0380 Fax

Carlsbad Service Center6183 Paseo Del Norte, Suite 150

Carlsbad, CA 92011(760) 929-2100 Phone

(760) 929-2115 Fax

Fallbrook Service Center126 West Beech

Fallbrook, CA 92028(760) 728-5811 Phone

(760) 728-0646 Fax

Escondido Service Center1802 S. Escondido Boulevard, Suite E

Escondido, CA 92025(760) 745-2299 Phone

(760) 745-3842 Fax

NSDCAR-We Are All About Your Business Success!