According to the CAR Hotline’s frequently asked questions (FAQ), the most often asked question is: Do I have to fill out a visual inspection? This is a must! No matter what side of the transaction you are on, buying or selling, an AVID (for short) will protect yourself and your clients.

The Lodi Association of Realtors® (LAR) now qualifies for 7 California Association of Realtors® (C.A.R.) Directors – beginning in 2009. (Previously had 4.) This is the result of the growth in their membership.

Four of the directorships are filled by the President, President-elect, Vice President and immediate Past President. Two shall be filled by a member of LAR who have been a C.A. R. Director, of an Association, in the past; and one shall be filled by a member of the Board of Directors.

Other criteria:

• Must be a member in good standing of LAR.
• Must attend the 3 C.A.R. Director’s Meetings held at various locations throughout the State. (Per diem, travel & hotel expenses are provided by LAR.)
• Must be willing to attend, if requested, the LAR Board of Director’s meetings.
• Must report to the membership via the Marketing Meetings in Lodi, Galt & Modesto after each C.A.R. meeting.

A letter requesting consideration for the appointment should be submitted to LAR by Friday, June 27th, 2008. The Board of Directors will make the appointments at the July 1st, 2008, Director’s Meeting.  Send inquiries to lodiaor@sbcglobal.net.

Note: This is a two year appointment unless budget constraints dictate otherwise.

American Home Shield was gracious enough, for the fourth year in a row, to sponsor a legal update with Gov Hutchinson, Assistant General Counsel and Staff Vice President of the CALIFORNIA ASSOCIATION OF REALTORS®.

All staff and agents from PMZ attended to hear about the latest laws and form updates.

Here is some interesting information:

Three year moratorium on Short Sale income tax reporting
The President has signed legislation implementing a law that eases the tax burden for homeowners who have had debt forgiven on a mortgage due to a foreclosure or short sale.

Previously, the tax code required a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower had been forgiven. Then, if the property was sold at foreclosure or was sold for less than what was borrowed, the difference was considered income and subject to be taxed. The new legislation provides a temporary, three-year change to the tax code to eliminate taxes homeowners might face when banks renegotiate the terms of a home loan and forgive a portion of the outstanding mortgage balance. The change in the tax law will cap untaxable forgiven debt at $2 million and apply only to principal residences.

Gov mentioned that similar legislation should pass through California State law.

For more information, view the White House fact sheet: Mortgage Forgiveness Debt Relief Act of 2007.

California’s anti-deficiency law saves short sale sellers
When you short sale a home in California, seller’s may be protected from paying the deficiency of the sale to the bank. California’s Code of Civil Procedure, Section 580(b) in plain English states that the bank cannot seek a deficiency judgment against the borrower if the loan was for purchase money on a residential one-four owner-occupied property. These loans are commonly referred to in the lending industry as “non-recourse” loans. The borrower has to live there—if it is an investment property or vacation home, then 580(b) may not save the borrower.

Full details of California CCP 580(b)

Laws regarding rentals
Immigration status - When screening tenants for rental eligibility, property owners can no longer ask the prospective tenant their immigration status. They will need to focus on other eligibility requirements such as income, employment, etc. More info on California Civil Code § 1940.3

Firearms - Similar to no tolerance procedures for drugs, property owners can evict tenants who own illegal firearms, un-permitted firearms, etc.

DRE Licensing Laws
The DRE can revoke or suspend a real estate license if an agent is convicted of a misdemeanor or felony, but only if it is Real Estate related.

There is a good chance that it will be required next year to include your DRE license number on your business cards, so consider jumping on board the bandwagon early or just ordering seven months worth of business cards if you are close to running out.

Those are just a few interesting facts I picked up today from the meeting. Thanks a lot for coming Gov!

Note: This article is not to be used or construed as tax or legal advice.  Please consult with a tax professional for tax related inquiries or a lawyer for legal counsel.

A new agreement between RE InfoLink, Central Valley MLS,  San Francisco Association of Realtors, Bay Area Real Estate Information Services Inc., and MetroList Services Inc., will now allow registered members of participating MLSs to access all the features of all the participating MLSs without having to pay a membership fee for each.

Each organization will keep a localized database of all of the participating MLSs data so that agents won’t have to login to each MLS separately to find what they want.

According to Inman news, MLS organizations in Southern California are working to follow suit, while the California Association of Realtors is looking to create a statewide MLS.