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C.A.R. chief lobbyist identifies threats to real estate if budget crisis continues

Wednesday, October 12, 2011

As legislators continue to seek ways to fix the state's budget deficit, California Association of REALTORS®' chief lobbyist says he is concerned that home ownership, as we know it, is being threatened.

"We don't want real estate to bear a disproportionate burden in solving the budget crisis. Threats are becoming more real all the time as the situation gets tighter," Alex Creel, senior vice president and chief lobbyist for C.A.R., told REALTORS® gathered at the California REALTORS® Expo 2011 last month.

Creel said REALTORS® have worked hard to protect home ownership. He cited a number of bills which the state trade association supported, got through the legislature and were signed by California Governor Jerry Brown this year. They include:

  • SB 458 (Corbett), which extends the anti-deficiency protections to junior liens, and states any lender that agrees to a short sale must accept the agreed upon short sale payment as full payment of the outstanding balance of all loans. In addition, this measure clarifies that this rule applies only to residences.    
     
  • SB 837 (Blakeslee) adds language to the Transfer Disclosure Statement (TDS) notifying the buyer of a property of requirements of a previous law that all residential properties should be retrofitted with low-flow toilets, shower heads and faucets starting with remodels in 2014, and in all remaining homes by 2017. Additionally, all commercial properties and multi-family homes will need to be retrofitted by 2019. The bill assures that sellers and buyers are aware of these water efficiency retrofit requirements and provides disclosure liability protection to REALTORS®.
     
  • SB 150 (Correa) protects the right of a common interest development (CID) owner to rent his or her unit, if that right existed at the time the owner purchased the unit. 
     
  • AB 771 (Butler) prevents home buyers in a common interest development (CID), such as a condominium or townhome, from being charged excessive document fees and prohibits any "bundling" of fees for other documents with these fees.
     
  • SB 510 (Correa), signed by Governor Brown on Oct. 9, stipulates that managers of a broker's branch office should not hold a restricted license, be subject to debarment, or have less than two years of full-time real estate experience within five years preceding the appointment.

Creel urged REALTORS® to keep abreast with political issues involving their business and to contact their legislators when bills that are proposed hurt the industry and home ownership. Creel identified current threats to home ownership. They include proposals to eliminate or reduce the mortgage interest deduction (MID); to place a tax on services, which would include services connected to real estate transactions (escrow, title insurance, inspection, etc.); to impose or raise transfer taxes; and to collect tax withholding on independent contractors.

"Real estate is no powder puff, but it's getting pretty aggressive out there," said Creel. "We want to maintain the course, but it's becoming more difficult in the environment we're mired in."

Approximately 5,200 Realtors from across California attended the California Expo 2011, which was held at the San Jose Convention Center last month.


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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