CAR RealLegal Update

CAR RealLegal Update

ENTITIES AND ELECTRONIC SIGNATURES; CFPB DELAYS NEW LOAN DISCLOSURES; U.S. SUPREME COURT ENDS CHAPTER 7 LIEN STRIPPING AND UPHOLDS DISPARATE IMPACT CLAIMS IN FAIR HOUSING LAW; LEGAL LIVE WEBINAR: ARBITRATION OF REAL ESTATE DISPUTES; EVERYDAY ETHICS WEBINAR: CODE OF ETHICS ARTICLE 2 Entities and Electronic Signatures: In many of today’s real estate transactions at least one of the parties is an “entity”, that is an estate, a trust, a corporation, an LLC or someone signing for another using a power of attorney.  It is important from both the seller’s and buyer’s perspective that if there is an entity it is properly formed and the person signing for the entity has the authority to do so. Proper signatures help to set expectations and to assure that the person signing is not personally liable to perform under the contract. To further this important goal, the Representative Capacity Signature Disclosure (C.A.R. Form RCSD) was incorporated into all C.A.R. purchase agreements. Using the RCSD, the purchase contract provides several things: The RCSD will be given to the other party The entity already exists Proof of authority will be provided within 3 days, and Once the RCSD is signed formally, all other documents can be signed or initialed in a less formal manner Signing the RCSD and the purchase contract using digital signatures has generated many Hot Line calls. How do we get both the entity name and the signer’s name right?  In response zipForm® has a tool that can help. Click here to go to the instructions, but basically the steps are: 1 – fill out the RCSD, 2 – fill out the purchase contract with the entity’s full name, and 3 – click on e-sign...
New C.A.R. Legal Q&A on PACE and Solar Programs

New C.A.R. Legal Q&A on PACE and Solar Programs

Improving water and energy efficiency and adding renewable energy features (conservation improvements) to a home are goals of many California homeowners to both reduce utility bills and help the environment.  Solar panels and energy-efficient furnaces are examples of the types of conservation improvements many homeowners make which can serve both goals. The cost of such improvements can be significant.  The state of California has a strong interest in energy and water conservation efforts to help alleviate the state’s water consumption problems and to reduce greenhouse gas emissions. To further these goals, California has instituted various financial programs to assist homeowners in making changes and additions to their homes.  Private companies also offer reasonable leasing deals to allow homeowners to install solar panels with little or no upfront costs. A new Legal Q&A from C.A.R. looks at two common ways for homeowners to install conservation improvements: PACE financing for residential one to four units and solar leases.  The Q&A also specifically addresses the financing and transactional issues that arise from a homeowner’s use of these programs. More...

CALBRE Guidance – Emails Now Required and Team Names

Contact Information: All licensees now must provide email addresses to the California Bureau of Real Estate (CalBRE) according to an Advisory regarding Assembly Bill 2540 (AB 2540). The bill requires that examination and licensee applicants, as well as current licensees, provide CalBRE with current contact information including current office or mailing address, current telephone number, and current email address. AB 2540 also requires that licensee applicants and current licensees must notify CalBRE within 30 days of making any change to their contact information. The Advisory clarifies that CalBRE is not required to publish email addresses or telephone numbers and also that any examination or license application that does not contain the required contact information will be incomplete resulting in processing delays. Salesperson Owned Fictitious Business Names/Team Names: The second CalBRE Advisory concerns salesperson owned fictitious business names (FBN) and team names.  Assembly Bill 2018 allows brokers to permit salespersons licensed to them to, on behalf of the broker, apply for a Fictitious Business Name (FBN), deliver to CalBRE a FBN application signed by the salesperson and the broker, and to pay for and maintain the ownership of the FBN. To facilitate this process CalBRE has issued a new form: “Add/Cancel Salesperson Owned Fictitious Business Name” (RE 247). The form also has instructions clarifying that Team Names meeting the criteria outlined in the instructions are not FBNs: two or more licensees work together as part of a “team”, “group”, or “association”; the team name includes the surname of at least one of the team, group, or association members; the name does not include terms such as broker or brokerage.  However, when a team name is used...

Changes to California Code of Ethics and Arbitration Manual for 2015

The California Code of Ethics and Arbitration Manual, which is incorporated into your Association Bylaws and is therefore binding on you, has been extensively revised for 2015. This notice describes the key changes that have been made to the Manual. New Procedure for Obtaining Member Photos for Publication of Ethics Discipline The current C.A.R. policy is to publish photos of members who are disciplined for ethics violations with a fine, reprimand, probation, suspension, or expulsion. The process for obtaining this photo has been changed as follows:   After being found in violation of a publishable offense, a disciplined member will provide a photo to C.A.R. and the local Association within 10 calendar days after final adoption of the discipline recommendation by the local Association’s Board of Directors. The member will provide a photo that is current, accurate and at least the size and quality of a passport photo along with a restatement of the authorization to use the photo in the new Form D-24. Members may simply take a digital photo, as long as it is of sufficient quality and size, and email it to the association along with Form D-24. Failure to provide the authorization with a photo in a timely manner will result in suspension of membership until the authorization form and photo are provided. The disciplined member must own or have right to use the submitted photo, and must provide a license to use the photo consistent with the Manual’s publication requirements. A.R. will publish a discipline summary without a photo if the photo has not been received in time and will include a note with...
The Following Member Legal Q&As Are Either New or Revised

The Following Member Legal Q&As Are Either New or Revised

Please take time to review the following new or revised Member Legal Q&As.  The C.A.R. Legal Page is one of the most visited pages of the C.A.R. website  and provides valuable legal information for your practice. Fictitious Business Names Q&A (revised October 23, 2014) Defamation: What Not to Say Q&A (revised October 8, 2014) Statute of Limitations: Deadline on Time to Sue Q&A (revised September 26, 2014) Buyer Representation Agreements: Q&A for Consumers Q&A (revised September 2, 2014) Buyer Representation Agreements (C.A.R. Forms BRE, BRNE, BRNN) Q&A (revised September 2, 2014) RPA Timeline of Events Chart (revised August 29, 2014) Transferring Title to Real Property Q&A (revised August 7, 2014) HOA: A Guide for REALTORS® Q&A (revised April 14, 2014) Condominium and Other Common Interest Development Disclosures Q&A (revised April 2, 2014) Predatory Lending: the High Cost Mortgage Disclosure Q&A (March 28, 2014) Disclosure Issues Related to Residential Care Facilities and Daycare Homes Q&A (revised March 7, 2014) HOA Liens & Assessments FAQ Q&A (revised January 8,...

Three Important Member Legal Webinars

New 2015 Laws Webinar November 5, 2014 Your C.A.R. Member Legal Team will present three important webinars in November that you may want to attend. The first of these, presented by C.A.R. attorney Robert Bloom, is November 5, 2014 covering the new 2015 laws most likely to impact your business. Robert will cover new laws that range from team names to new tenant rights to have personal vegetable gardens.  You won’t want to miss this opportunity to be informed about what to expect next year.  The webinar will be from 1 to 2 pm on November 5th. Two New RPA Changes Webinars November 14, 2104 The second and third webinars will cover the most significant changes to the new, revised RPA, and will be presented by C.A.R. attorneys Neil Kalin and Howard Fallman.  There will be two webinars on the same day to accommodate more attendees, since this is such an important topic.  The webinars will be from 10  to 11 am and 1  to 2 pm on November 14th.You can sign up for any of these three webinars at www.car.org/legal/live. Space for these webinars is limited and they may fill up fast.  You may want to sign up as quickly as you can. As soon as you register you should immediately receive a confirmation email which you will need to attend the webinar for which you have...
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