JULY 2024
1st Monthly Legislative Update Newsletter

Federal

President Biden recently announced new lawful pathways for undocumented migrants to keep families together. U.S. citizens with noncitizen spouses and children who have lived in the U.S. for ten or more years can now apply for lawful permanent residence without leaving the country. This is a significant shift from the previous requirement of residing in the U.S. for over 23 years. Additionally, DACA recipients with degrees from accredited U.S. institutions will have access to expedited work visas, providing greater opportunities for education and employment stability.

 

Real Estate in California

The California Legislature and Governor Newsom have reached a final state budget agreement, restoring funding for local governments to address homelessness and ensuring strong education funding levels. Despite some budget cuts due to the deficit, essential programs such as subsidized childcare placements and affordable housing initiatives have been prioritized. Notably, PAGA Reform legislation has been passed, capping penalties and improving right-to-cure processes, easing the burden on businesses.

The implementation of SB 525, the $25 healthcare minimum wage law, has been adjusted and will now go into effect between October 15th and January 1st, exempting state-operated healthcare facility employees. Meanwhile, California's Water Resources Control Board has introduced the 'Making Conservation a California Way of Life' policy, requiring water suppliers to reduce their use by 30% over 15 years. Additionally, the California Energy Commission has approved plans to develop offshore wind turbines, promoting renewable energy sources on the North and Central Coasts.

For more details on these developments and to stay informed on other legislative updates, click here.

 

C.A.R. FORMS RELEASE DATES TO REMEMBER:

July 24: New & revised C.A.R. Forms released on zipForm and other platforms.

August 17: Deadline to implement practice changes pursuant to NAR settlement.

JULY 2024 FORMS RELEASE: LIST OF NEW & REVISED FORMS
(note: items with an asterisk indicate new forms) 
Broker Compensation Advisory (BCA) 
Buyer Financial and Personal Information (BFPI)* 
Buyer Identification of Preferences and Priorities (BIPP)* 
Buyer Material Issues for a Specific Property (BMI-SP)* 
Buyer Representation and Broker Compensation Agreement (BRBC) 
Cancellation of Buyer Representation (COBR) 
Modification of Terms – Buyer Representation Agreement (MT-BR)* 
Modification of Terms – Listing Agreement (MT-LA)* 
Multiple Listing Service Addendum (MLSA)* 
Notice of Broker Involved Properties (NBIP) 
Open House Visitor Non-Agency Disclosure and Sign-In (OHNA-SI)* 
Property Showing and Representation Agreement (PSRA)* 
Residential Listing Agreement (RLA) 
Residential Purchase Agreement (RPA) 
Seller Payment to Buyer’s Broker (SPBB) 
Tenant Representation and Broker Compensation Agreement (TRBC)* 
Other listing agreements and purchase agreements have also conformed to the changes to the RLA and RPA, respectively.

HELPFUL LINKS: Newforms

Designated Email Address for Forms Questions: july2024forms@car.org 

Update on Burnett v. NAR Case

The Burnett v. National Association of Realtors (NAR) case has reached a settlement, marking a significant development in the real estate industry. The lawsuit centered around allegations of anti-competitive practices in the real estate market, particularly concerning commission structures and practices that plaintiffs argued inflated costs for consumers.

In the settlement, NAR agreed to several key changes aimed at increasing transparency and competition within the industry. These changes include modifying rules to allow for greater disclosure of commission rates, enabling buyers to better understand and negotiate agent fees. Additionally, NAR has committed to eliminating certain practices that were seen as limiting competition among agents.

This settlement is expected to have widespread implications for real estate professionals, particularly in how they handle commission disclosures and negotiations. By fostering a more transparent and competitive environment, the settlement aims to benefit both consumers and agents, ensuring fairer practices and potentially lowering transaction costs.

For real estate brokers, staying updated on the new regulations and adapting to these changes will be crucial. Training sessions and resources will be made available to help members navigate the new landscape and ensure compliance with the updated rules.

International

The U.S. and Mexico have resumed avocado inspections after addressing security concerns in Michoacan. This marks the second time in recent years that inspections were paused due to safety issues. Additionally, Canada plans to align with President Biden's tariffs on Chinese electric vehicles to combat unfair competition. The tariffs will undergo a 30-day public consultation period before implementation.

VP of International and Public Affairs Kenia Zamarripa will participate in a conference with COPARMEX to discuss border development and opportunities in the Cali Baja region. This event is crucial for fostering cross-border collaborations and economic growth.

In Mexico, President-elect Claudia Sheinbaum has named key members of her cabinet, including familiar faces such as Marcelo Ebrard and Alicia Bárcena. This transition is vital for understanding the future political and economic landscape in Mexico.

State

California's state budget agreement has restored funding for homelessness and education, despite some cuts due to the deficit. The PAGA Reform deal introduces changes beneficial to businesses, such as capping penalties and improving right-to-cure processes. SB 525's implementation has been adjusted, and the Water Resources Control Board's new policy aims for a 30% reduction in water use over 15 years.

Additionally, offshore wind development plans on the North and Central Coasts have been approved, signaling a significant shift towards renewable energy. For more detailed information on these updates, including links to relevant legislation and resources, visit 

California Legislative Information.

Get your insurance questions answered on Wednesday, July 24.
The next free C.A.R. member virtual panel event from C.A.R.'s Center for California Real Estate (CCRE) is a big one for you and your clients. We're going to cover homeowner insurance.

California's home insurance landscape is undergoing significant strain as insurers withdraw from various markets in the state. This has left many homeowners grappling with soaring premiums or losing coverage altogether, complicating an already strained housing market. Our panel of insurance professionals and policymakers (including California Department of Insurance Commissioner Ricardo Lara) will explore potential solutions to these challenges.  Join us for this crucial conversation by registering here.

VA Seller Concessions

A noteworthy update for VA loans is the potential for increased seller concessions. VA loans typically allow sellers to cover certain closing costs, but recent discussions indicate possible changes to expand these concessions. This can significantly benefit both buyers and sellers, making VA loans more attractive and accessible.

For more information on VA seller concessions and how they may impact your transactions, click here.

Business Updates

During the California Association of REALTORS® winter business meetings, significant financial resources were allocated to oppose three initiatives, initially without proposition numbers:

ACA 1 (Proposition 5):

Initially aimed to change vote thresholds for special taxes and bonds, affecting Prop 13.

Due to negotiations and changes, C.A.R. has adopted a neutral stance on Proposition 5.

ACA 13:

Sought to change vote thresholds for certain initiatives and repeal the Costa-Hawkins Rental Housing Act.

Postponed to the 2026 ballot, so no current resources are needed from C.A.R.

C.A.R. continues to oppose the repeal of Costa-Hawkins, now Proposition 33, and will provide further updates.

Bills Opposed by C.A.R.:

AB 1932 (Ward): Proposed elimination of mortgage interest deduction on second homes.

AB 2216 (Haney): Mandated pets in rental properties.

Both bills will not move forward this year.

Buyer Broker Agreement Bill (AB 2992, Nguyen):

Moving forward with bipartisan support and no objections.

Stay tuned for more updates on these important legislative matters.

Stay informed and engaged with these legislative and business updates to better serve your clients and community.

 

Disclaimer: The information provided is for informational purposes only and does not constitute legal, financial, or professional advice.

JUNE 2024
California Association of Real Estate Brokers Monthly Legislative Update

1st Monthly Legislative Update Newsletter

Federal

The Department of Health and Human Services, alongside other federal agencies, has released a strategic framework for a National Plan on Aging. 

This plan aims to establish national recommendations for advancing healthy aging and creating communities that are inclusive of older adults.

Looking ahead, Congress is set to face significant fiscal deadlines in 2025, including the debt ceiling, budget caps, 

and the expiration of Trump administration tax cuts. The culmination of these issues will likely result in intense legislative activity.

President Biden has announced new measures to bolster border security by limiting the unlawful entry of migrants and their 

ability to request asylum. This plan, under the Immigration and Nationality Act sections 212(f) and 215(a), seeks to manage noncitizen 

entry when land ports are overwhelmed while maintaining trade and travel.

 

Real Estate in California

California’s earthquake early-warning system, ShakeAlert, is receiving a significant upgrade to offer more precise alerts for major quakes. 

Integrating GPS sensors with seismic sensor, this enhancement will provide earlier warnings and more accurate estimates, 

especially for large earthquakes on the San Andreas fault. The upgraded system, expected to be fully operational by the end of 2025, 

aims to ensure the safety of residents across the West Coast.

Implementation Delay of Healthcare Minimum Wage Law (SB 525) The start date for California’s healthcare minimum wage law has been 

delayed to July 1st, 2024.This postponement allows for further budget negotiations to address the state’s substantial financial 

obligations under the law.

Under VA loan regulations, veterans are prohibited from paying real estate agent or broker fees in connection with a VA loan.

 However, sellers can now offer concessions to cover a portion of the buyer broker's commission. 

This provision helps veterans manage closing costs and ensures they receive necessary support during the home-buying process. 

For detailed information on VA seller concessions and allowable fees, refer to the official VA loan guidelines here.

. For more details, visit the VA’s Home Loans Guide.

 

Update on Burnett v. NAR Case

In a landmark settlement, the National Association of Realtors (NAR) has agreed to a series of changes aimed at increasing transparency 

and fairness in real estate transactions. 

The Burnett v. NAR case centered on allegations that the association's rules artificially inflated commission rates, limiting competition

 and consumer choice.

The settlement mandates that all MLS participants working with buyers must enter into written agreements before the buyer tours any home.

This change is intended to provide clearer terms of engagement and promote fairness in agent compensation. 

Additionally, MLS databases must now include comprehensive commission information for listed properties, allowing buyers to make 

more informed decisions.

These adjustments are expected to foster greater competition among real estate agents, potentially lowering costs for consumers. 

By enhancing transparency and requiring written agreements, the settlement aims to create a more equitable marketplace for both 

buyers and sellers.

For further details on the settlement, refer to C.A.R.'s dedicated page on legal updates and broker compensation practices.

Here is an article that expands issue:

Dispelling Myths About Real Estate Commissions and the MLS

International

The recent presidential election in Mexico has led to the historic election of Claudia Sheinbaum, the country's first female president from the MORENA party. 

This election saw MORENA securing a majority in Congress, potentially leading to significant constitutional reforms. 

Voter turnout in Baja remains a concern, with only 48% of registered voters participating, compared to the national turnout of 60.92%.

In India, Prime Minister Narendra Modi has been re-elected for a third term following an unprecedented six-week election period, 

the largest in the world. Despite retaining the majority, his party saw a reduction in seats, necessitating reliance on party allies.

El Salvador’s President Nayib Bukele has also won re-election, known for making cryptocurrency a legal tender in the country. 

The U.S. has expressed a willingness to deepen ties with El Salvador to address security, economic, and governance issues.

The Ghana Real Estate Professionals Association (GREPA) has launched the first Multiple Listing System (MLS) in Africa, transforming Ghana's chaotic property market. 

This MLS enhances the correlation and dissemination of listing information, fosters cooperation among agents, and provides a consolidated property information database. 

It introduces a transparent system where agents access comprehensive property data, ensuring accurate listings and fair pricing. 

The MLS also includes data syndication for wider property exposure and Internet Data Exchange for up-to-date listings on agents' websites. 

This innovation promotes agency relationships, efficient property tax control, and ownership verification, positioning the LoopGhana MLS powered by Xposure 

as a significant advancement in Ghana's real estate sector.

State

The upcoming weeks will clarify which measures will appear on the November 2024 ballot, with the deadline for pulling qualified measures set for June 27th. 

One notable withdrawal is SCA 2, which would have repealed Article 34 of the California Constitution requiring local voter approval for fully public low-income housing.

SB 525, California’s healthcare minimum wage law, has had its implementation delayed to July 1st due to ongoing budget negotiations. 

The law’s significant financial impact, estimated at over $2 billion, is a primary concern.

Here are some notable recent California State Real Estate Bills that could significantly impact the industry:

AB 318 - Mobilehome Residency Law Protection Act: Enhances protections for mobile

home residents by addressing residency rights and enforcement actions.

AB 529 - Adaptive Reuse Projects: Encourages the conversion of existing buildings into

affordable housing, potentially increasing housing stock without new construction.

AB 671 - CalHome Program for ADUs: Expand funding and support for building accessory

dwelling units (ADUs), offering more affordable housing options.

SB 423 - Streamlined Housing Approvals: Simplifies approval processes for multifamily housing

 developments, aiming to expedite new housing projects and alleviate housing shortages.

AB 1508 - California Statewide Housing Plan: Requires the Department of Housing and Community Development to develop and update a comprehensive statewide housing plan to address long-term housing needs and policy goals.

These bills and policies reflect a broader effort to streamline housing development, enhance tenant protections, and promote affordable housing initiatives across California. 

For more detailed information, you can explore the Governor's announcements and the California Legislature's updates on these topics (Governor of California) .

MAY 2024

2nd Monthly Legislative Update

Federal

Cryptocurrency Regulation: The House recently passed the Financial Innovation and Technology for the 21st Century Act (FIT 21), establishing a regulatory framework for cryptocurrencies. This bipartisan legislation aims to clarify when cryptocurrencies should be regulated by the SEC, enhancing investor protection and market stability.

Permitting Reform: Federal permitting reform remains a contentious issue, with limited progress in the Senate. Despite efforts to expedite permits for energy projects, including those funded by the Inflation Reduction Act, Senate Majority Leader Chuck Schumer has indicated that significant reforms are unlikely in the near term.

Border Security Bill: The U.S. Senate reintroduced a border security bill, which was narrowly blocked with a 43-50 vote. This follows Majority Leader Schumer's push for a standalone vote after a previous failure in February. The bill's reintroduction reflects ongoing debates over border security measures.

Real Estate

State Budget and Legislation: The State’s Senate and Assembly have conducted their first suspense file hearings, resulting in the death of many controversial or expensive bills due to the state’s budget deficit. Approximately 35% of Assembly bills and 26% of Senate bills were killed.

Healthcare Minimum Wage Law: The implementation deadline for SB 525, the $25/hour healthcare minimum wage law, remains June 1. However, Senator Durazo has filed legislation to delay it by one month to July 1.

Climate Bond: Discussions about a climate bond on the November ballot have intensified following Governor Newsom’s proposed budget cuts to climate programs. The bond aims to offset the 17% reduction in climate funding from the 2022 peak.

Update on Burnett v NAR Case

Settlement Explanation: The Burnett v NAR case has reached a settlement that has significant implications for NAR members. The case, filed against the National Association of Realtors (NAR), alleged anti-competitive practices regarding broker commissions. The settlement aims to address these concerns and bring more transparency to real estate transactions.

Under the settlement, NAR has agreed to several key provisions. Firstly, they will eliminate any rules that restrict broker commission negotiations. This change is expected to foster a more competitive environment, allowing buyers and sellers to negotiate commission rates freely. Secondly, NAR will ensure that all commission rates are disclosed to both buyers and sellers, enhancing transparency in real estate transactions.

Additionally, the settlement includes a commitment from NAR to educate its members about these new rules and the importance of transparent commission practices. This education initiative is crucial for ensuring compliance and helping members understand the benefits of the new regulations.

NAR members must be aware that they need to be compliant with these new rules by the date of Class Notice, which may be as early as August 17th. This settlement represents a significant shift in how broker commissions will be handled and is a step towards more fair and transparent real estate practices.

International

USMCA Free Trade Commission Meeting: U.S. Trade Representative Katherine Tai met with Mexico’s Secretary of Economy in Arizona for the fourth USMCA Free Trade Commission meeting. Discussions focused on trade relations and economic cooperation, emphasizing the importance of the USMCA in strengthening North American trade ties.

Taiwan Parliamentary Incident: A dramatic incident in Taiwan’s parliament saw a member stealing a bill to prevent its passage. The event, involving physical altercations among members, highlights the intense political climate in Taiwan.

New Cross-Border Pet Regulations: Starting August 1, new regulations will affect how pets are brought across the border. Use the DogBot tool to determine applicable rules based on travel dates and origin locations.

Missed IBA Forum on Mexico's Elections?: Stream the event on our YouTube channel to hear expert insights on Mexico's presidential candidates and their policies. Watch here.

Make it with Mexico Conference: The Independent Voter Project's conference in Ensenada from July 29th to August 2nd will focus on regional priorities and include meetings with legislators and industry stakeholders.

State

The CAREB Legislative Committee and Executive Leadership met with Dr. Akilah Weber MD Assemblymember, Seventy-Ninth District to discuss  Bill: ACR-135 – Reparations focused on the historical significance and the moral imperative of acknowledging and addressing the injustices faced by African American slaves and their descendants and suggest specific measures or programs that could be implemented to effectively address reparations within the state.

On June 15th, 2023 Dr Weber will be hosting a Town Hall in San Diego to further discuss the progress of the reparations bills

State Senate and Assembly Hearings: The first suspense file hearings resulted in significant cuts to expensive bills due to the state's budget deficit. About 35% of Assembly bills and 26% of Senate bills were killed. The second hearing is scheduled for mid-August.

SB 525 Implementation Delay: The state is considering delaying the $25/hour healthcare minimum wage law (SB 525) implementation due to its estimated $4 billion annual cost. Legislation has been filed to postpone the deadline to July 1st. We will keep you updated on further developments.

Climate Bond for November Ballot: Discussions on a climate bond are intensifying following budget cuts to climate programs in Governor Newsom’s May Revise. The bond aims to secure voter-approved funding for climate initiatives, amid a crowded November ballot.

Delta Water Conveyance Project: The project, priced at $20 billion, promises significant economic benefits, aligning with the CA Department of Water Resources' analysis.

Conclusion

In conclusion, the real estate industry continues to be influenced by a variety of factors, from economic trends to legislative changes. The recent settlement in the Burnett v NAR case is a reminder of the importance of transparency and fair competition in the industry. As California navigates challenges and celebrates milestones, the role of real estate brokers remains critical in driving growth and prosperity.

For more information on these topics and upcoming events, please visit the California Association of Real Estate Brokers website. CAREB.org

Feel free to reach out with any questions or concerns.

Quick Links:

• NAR Settlement FAQ
• DogBot Tool
• IBA Forum Stream
• Make it with Mexico Conference Registration
• CalChamber Analysis
• Biocom California Report

1st Monthly Legislative Update Newsletter

1. Federal

The Federal Reserve recently reported a significant slowdown in job growth, with only 175,000 jobs added to the economy in April, down from 315,000 in March. This deceleration is believed to be influenced by the Fed's sustained high interest rates. However, with inflation showing signs of stabilizing, there may be room for the Fed to lower rates, potentially stimulating job growth.

Additionally, the U.S. Census Bureau's latest findings reveal a rapid increase in the use of Artificial Intelligence (AI) among businesses. The rate of AI adoption has risen from 3.7% in fall 2023 to 5.4% in February 2024, with expectations to reach 6.6% by early fall. Smaller firms are leading this trend, employing AI for various tasks like customer service chatbots, text and data analytics, and voice recognition.

Only 17% of allocated federal funds from major acts like the American Rescue Plan and the Infrastructure Investment and Jobs Act have been spent as of April. This underscores the importance of efficient allocation and highlights opportunities for investment.

2. Real Estate

The 2023 Profile of Home Buyers and Sellers by NAR indicates that 89% of buyers relied on real estate agents or brokers, with a 90% satisfaction rate. Additionally, CCRE will address the Bay Area's housing supply challenges in May, discussing initiatives by various entities to improve the living environment. C.A.R.'s Center for California Real Estate (CCRE) is coming to NorCal on May 21 to dissect the complex nature of the Bay Area’s housing dilemma, bringing to the forefront initiatives being undertaken by government bodies, corporate entities, and community organizations to foster a prosperous living environment.

The California tourism economy hit a record high in 2023, generating $150.4 billion, with San Diego playing a significant role in surpassing 2019 levels. This growth signifies a strong rebound in the tourism sector which has a favorable forecast for the short-term rental market.

On the energy front, California achieved a remarkable milestone, running its grid on 100% renewable energy for parts of every day between March 14 and May 4. This highlights the state's commitment to renewable energy sources and reducing its carbon footprint.

The State Senate's Subcommittee on LOSSAN Rail Corridor Resiliency continues to address coastal erosion issues affecting the corridor and the importance of freight and passenger movement.

3. Update on Burnett v NAR Case

The recent settlement in the Burnett v NAR case marks a significant development. The lawsuit, alleging that the National Association of Realtors (NAR) rules led to inflated commission fees, resulted in a $587 million settlement. This settlement includes changes to NAR rules, such as requiring brokers to offer buyer broker commissions when listing a property on a Multiple Listing Service (MLS). It also introduces transparency regarding commissions to buyers. The case highlights the importance of transparency and fair practices in the real estate industry.

Resources for You and Your Staff 

UPDATED Buyer Representation Forms - FREE FOR C.A.R. MEMBERS

On Tuesday, May 28, 2024, C.A.R. Members can learn all about the buyer representation forms that will be updated by C.A.R. – for FREE. Find out how to incorporate these forms into your business, when to present them, and how to do so confidently. C.A.R. MEMBERS, use promo code buyrep25 at checkout to get this class for free! Link: 5/23 - Residential Listing Agreement and Related Forms - LearnMyWay® – C.A.R. Business Products (car.org)

4. International

US-Mexico Relations: Discussions on Mexico's upcoming presidential elections and U.S.-Mexico relations are ongoing, with a focus on candidates, policies, and socio-economic factors influencing the electoral landscape in Mexico.

Binational Projects: Updates on key regional projects, including the Otay Mesa East land port of entry and the San Diego-Ensenada binational ferry, highlight the collaborative efforts between the U.S. and Mexico.

5. State

The CAREB Legislative Committee and Executive Leadership met with Dr. Akilah Weber MD Assemblymember, Seventy-Ninth District to discuss  Bill: ACR-135 – Reparations focused on the historical significance and the moral imperative of acknowledging and addressing the injustices faced by African American slaves and their descendants and suggest specific measures or programs that could be implemented to effectively address reparations within the state.

On June 15th, 2023 Dr Weber will be hosting a Town Hall in San Diego to further discuss the progress of the reparations bills

Zero-emission vehicle (ZEV) sales are up in California and are expected to continue rising as the state targets GHG emissions with new rules.

Starting July, California restaurants will no longer be able to charge service fees under Senate Bill 478, requiring businesses to include all costs in their initial pricing.

Conclusion

In conclusion, the real estate industry continues to be influenced by a variety of factors, from economic trends to legislative changes. The recent settlement in the Burnett v NAR case is a reminder of the importance of transparency and fair competition in the industry. As California navigates challenges and celebrates milestones, the role of real estate brokers remains critical in driving growth and prosperity.

Disclaimer: The information provided is for informational purposes only and does not constitute legal, financial, or professional advice.

California Association of Real Estate Brokers 2nd Monthly Legislative Update

Federal

Fannie & Freddie Clarify Real Estate Commission Rules In response to NAR’s settlement in the Burnett et al and Moehrl et al cases, Fannie and Freddie announced that sellers are permitted to make concessions towards a buyer’s agent fee that are not subject to financing concession limits. This clarification provides important guidance for real estate transactions and ensures transparency in commission structures.   Fannie Mae Notice RE Commission   Freddie Mac Notice RE Commission

Real Estate

Market Update The U.S. economy continues to show strength, raising concerns for the housing market. Last week's strong job numbers were followed by equally robust inflation figures, leading to apprehensions that any rate cuts from the Fed may not occur until the second half of the year, if at all. Consequently, the bond market has witnessed interest rates climbing as investor demand for treasuries diminishes. Mortgage rates have risen above 7% again, marking the first time in nearly six months. While the outlook hasn't shifted significantly, we anticipate more challenges ahead as the markets digest the latest economic data.

C.A.R. March Home Sales and Price Report C.A.R. released its March Home Sales and Price Report earlier this week, indicating a decline in existing, single-family home sales compared to the previous month. However, the statewide median home price experienced a modest increase, reflecting ongoing market dynamics. Year-to-date statewide home sales saw a slight uptick, suggesting resilience in the housing market amidst evolving economic conditions.

Update on Burnett v NAR Case

Settlement and Its Implications Following the settlement in the Burnett et al and Moehrl et al cases, Fannie and Freddie have provided clarity on real estate commission rules, allowing sellers to offer concessions towards a buyer’s agent fee without limitations on financing concessions. This development ensures transparency and fairness in commission structures, benefiting both buyers and sellers in real estate transactions.

The settlement marks a significant milestone in addressing concerns related to real estate commissions and underscores the importance of regulatory clarity in the industry. By providing clear guidelines, Fannie and Freddie promote confidence and trust in the real estate market, fostering a conducive environment for transactions to thrive.

Legal Updates C.A.R. Legal has compiled resources to assist members in navigating the implications of the NAR settlement. These resources include a document addressing frequently asked questions, a quick guide summarizing the settlement terms, and additional references from Smart Zone and NAR. Members are encouraged to leverage these resources to gain a comprehensive understanding of the settlement and its implications on real estate transactions.

International

No international updates at this time.

State

Department of Insurance Public Meeting on Catastrophe Modeling Regulation The Department of Insurance will hold a public workshop on April 23 to discuss a proposed catastrophe modeling regulation aimed at restoring insurance options for all Californians. This initiative is part of Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy, which aims to address the state’s ongoing insurance crisis. The regulation will leverage forward-looking catastrophe modeling to enhance wildfire safety and mitigation efforts, contributing to improved insurance availability and affordability across the state.

The workshop presents an opportunity for stakeholders to provide input and feedback before the regulation is submitted for approval. By prioritizing public engagement and transparency, the Department of Insurance seeks to implement impactful reforms that safeguard the integrity of California’s insurance market and promote equitable access to insurance coverage.

Legislative Day - Wednesday, May 1

This is your opportunity to unite with over 2,000 other REALTORS® at the Capitol, advocating for real estate matters and making our collective voice heard with state legislators. Engage with officials, gain insights from political leaders, and network with peers.

REALTOR® Block Party - Tuesday, April 30

Kickstart the experience by arriving a day early for the Block Party. Enjoy a closed-off city block buzzing with food trucks, music, games, and opportunities to connect with fellow real estate professionals.

CAREB Legislative Day Mixer 

We are thrilled to announce an evening of networking and celebration on the occasion of Legislative Day! Join us for the Legislative Day Mixer, a prime opportunity for like-minded professionals to connect and share insights.

When: Wednesday, May 1st, 2024 Time: 7 PM - 11 PM Where: The Mermaid Bar, 1016 K Street, Sacramento, CA 95814

This mixer is not just a gathering; it's a testament to our community's vigor and commitment to shaping the future of real estate.

Save the date, dress to impress, and prepare for an unforgettable night!

For more information, visit our website at www.careb.org.

Let’s make this Legislative Day a stepping stone for future success.

California Association of Real Estate Brokers Monthly Legislative Update - April 2024

Federal Update

In our nation’s capital, developments have unfolded that may have a direct impact on our industry and overall national security. Notably, the potential impeachment trial of the Secretary of Homeland Security, Alejandro Mayorkas, appears to be swiftly heading towards dismissal. Senate Majority Leader Schumer has indicated plans to move for immediate dismissal of the charges, a procedure that requires a simple majority vote. This decision underscores a potentially less tumultuous legislative session than anticipated, possibly stabilizing aspects related to homeland security that indirectly affect real estate market sentiments.

Additionally, the federal government's recent success in thwarting a significant cyberattack targeted at Linux, an operating system prevalently utilized by federal agencies, highlights the ongoing challenges and importance of cybersecurity in our increasingly digital world. This incident has sparked a broader discussion within the cybersecurity community regarding the security of open-source code software, emphasizing the need for continuous vigilance and advancement in cybersecurity measures to protect critical infrastructure and systems that impact our sector indirectly.

Real Estate Update

The real estate sector continues to witness dynamic shifts, underscored by the strong jobs report for the third consecutive month. This robust employment growth suggests a potentially soft landing for the economy in 2024, which could bode well for the real estate market. However, this economic strength also maintains elevated levels of inflation, consequently delaying anticipated Federal Reserve rate cuts. These developments have led Wall Street to adjust its expectations, impacting interest rates and potentially influencing market dynamics. Notwithstanding, future projections still align with a 50-75 basis point decline in the policy rate this year, offering a glimmer of optimism for real estate professionals navigating these uncertain times. For the CAR Weekly Sales Data Report  Link: https://car.sharefile.com/share/view/sf6e04f3596d94898ab0d5363bae985d3

Update on Burnett v. NAR Case

Let's delve into the recent developments in the Burnett v NAR case. The National Association of REALTORS® (NAR) agreed to a nationwide settlement totaling $418 million with groups of home sellers. This agreement includes the removal of Offer of Compensation fields from the Multiple Listing Service (MLS) and mandates REALTORS to enter into Buyer Representation Agreements defining representation terms and compensation. These changes are slated to take effect by mid-July, pending final court approval.

The settlement offers three compensation options: buyers paying the professional fee, sellers covering the selling broker's fee, or the listing broker offering compensation off MLS. Notably, this settlement mitigates potential damages that could have exceeded $5 billion and allows the industry to move forward with enforceable contracts covering services and compensation.

This lawsuit challenged several longstanding practices within the real estate industry, particularly around listing services and commission structures. The settlement introduces modifications aimed at enhancing transparency and fairness in real estate transactions. For instance, it mandates clearer disclosure about commission fees and prohibits practices that could discriminate against lower-priced listings. These changes are expected to foster a more competitive and consumer-friendly marketplace, impacting how real estate professionals conduct business and interact with clients. As this settlement unfolds, it's crucial for industry participants to stay informed and adapt to these regulatory shifts, ensuring compliance and leveraging opportunities to refine their service offerings.    

Check out the new Legal Tools information summarizing key points of Burnett v. NAR. Link: https://www.car.org/riskmanagement/tools/burnett-v-NAR 

International Update

On the international front, significant developments include Mexico's upcoming presidential debate, a pivotal event that could influence bilateral trade and economic policies affecting the real estate sector, especially in border regions. Additionally, Taiwan's recent seismic activity underscores the importance of considering geopolitical and natural disaster risks in international real estate investments. Furthermore, the U.S. Department of State's collaboration with Mexico to enhance the semiconductor ecosystem presents potential growth opportunities for real estate professionals, given the likely increase in industrial and commercial developments stemming from this sector's expansion.

State Update

California's real estate landscape is shaped by various state-level initiatives and challenges. The potential increase in port traffic due to external factors highlights the need for infrastructure readiness, possibly impacting commercial real estate markets. Furthermore, California's stringent emissions standards for heavy-duty trucks exemplify the state's environmental commitments, affecting logistics and distribution sectors. The CPUC's proposed electric bill fixed charge and legislative efforts to address emergency room violence illustrate the complex interplay of policy, social issues, and economic factors influencing the state's real estate dynamics. Lastly, the early action agreement on budgetary measures, including significant investments in climate innovation and infrastructure, outlines the state's priorities and potential areas of growth for the real estate sector.

As we near the conclusion of Realtist Week and celebrate Fair Housing Month, it's vital to reflect on the significance of this observance and the invaluable contributions of realtists in advancing fair housing initiatives. Realtist Week serves as a tribute to the National Association of Real Estate Brokers (NAREB), established in 1947 as a response to discriminatory practices within the real estate industry.

NAREB has been pivotal in advocating for fair housing policies and combating racial discrimination in housing. Their relentless efforts culminated in the passage of the Fair Housing Act of 1968, a landmark legislation that prohibited housing discrimination based on race, color, religion, sex, or national origin. This pivotal moment marked a significant stride towards ensuring equal access to housing for all individuals.

As we navigate these complex landscapes, staying informed and proactive in adapting to these changes will be paramount for continued success and resilience in the dynamic real estate market.