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Legislators Listen to Realtors' Concerns on Legislative Day


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Wednesday, June 16, 2010

On June 9, members of the Silicon Valley Association of REALTORS® joined thousands of California Realtors at the State Capitol for Legislative Day. The day is an opportunity for the state's Realtors to meet with their state legislators and discuss important issues that affect the real estate industry.

At the morning briefing, California Association of Realtors president Steve Goddard stressed how legislative proposals can greatly affect the real estate industry, homeowners and buyers and, ultimately, the economy. Special guests State Senator Robert Dutton and Assemblymember Mary Hayashi also underlined the importance of the day.

"You are familiar with the neighborhoods, you know where the needs are, what it takes to have a successful community. You are the best spokesperson for your profession and clients, to protect all that they have worked so hard to achieve and attain," Assemblymember Hayashi said.

After lunch Silicon Valley Realtors were able to meet with Assembly members Paul Fong, Ira Ruskin, Jim Beall, Jr., Senator Joe Simitian and staff of Senator Elaine Alquist. The Realtors related problems buyers and sellers are encountering with appraisals. They urged the legislators to support future legislation to clarify and give the Office of Real Estate Appraisers the authority to regulate appraisal management companies to ensure the quality, timeliness and neutrality of appraisals conducted by these AMCs. They urged legislators to support making appraisals "portable" if transferring lenders.

The Realtors also raised concerns about proposals which some legislators believe could address the state budget gap. These proposals include forced overwitholding on independent contractors, which the Realtors say would only create administrative burdens and would not solve the budget problem; imposing a tax on services which, among other things, would increase the cost of housing because all services involved in purchasing a home will be taxed (e.g., home inspection, pest control inspection, escrow services, etc.); and changes in the Mortgage Interest Deduction, which would be harm homeownership.

They likewise asked for support for the passage of SB 1178 (Corbett), which recently passed the Senate and is now in the Assembly. This proposal would extend anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure. The Realtors explained most homeowners didn't know when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. Currently, lenders can collect the deficiency debt years later.

The Realtors conveyed concerns about AB 1919 (Davis). Existing law authorizes counties to establish a survey monument preservation fund and impose a user fee not to exceed $10 for filing or recording of any grant deed conveying real property, except for grant deeds conveying lots created by recorded tract maps. AB 1919 would delete this exemption and make the fee a transfer tax, which must be approved by voters. The Realtors contend lots on recorded tract maps do not benefit from this fee; it is a fee related to service providers.

The legislators said they are faced with budget challenges greater than last year and have to make difficult choices. "It's the greatest challenge that we face at this particular time," said Senator Simitian. "I have never seen people as anxious and scared as I have seen them today in my 26 years in public service."
Simitian's comment echoed remarks made earlier by lunch guest speaker and political strategist Phil Giarrizzo. Giarrizzo said the results of the June 8 primaries showed "voters are tired of the bickering."

"People are looking for solutions, substance, leadership and someone to trust," Giarrizzo said. "They know the difference between a campaign of promise and pledge, and results and delivery. … People are demanding leaders with sound judgment because fear has taken over."

The legislators promised to consider the Realtors' concerns.

"I hear the wisdom of what you are saying," said Assemblyman Ruskin.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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