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Silicon Valley Realtors®: Business Practices of Santa Clara County Association "Unacceptable"

Cupertino, CA -- The Silicon Valley Association of Realtors® (SILVAR), the trade association of the real estate industry in Silicon Valley, announced today that it has filed a complaint with the National Association of Realtors (NAR) against the Santa Clara County Association of Realtors (SCCAOR) in San Jose. The complaint addresses violations of NAR's Unacceptable Business Practices policy, which is the document that guides Realtor association interactions.

In the complaint, SILVAR states that its neighbor association has violated crucial clauses of the NAR policy, which guides the nation's Realtor associations. Additionally, SILVAR's attorney is filing a motion to have the attorney representing SCCAOR disqualified from a related lawsuit filed against SILVAR in the Santa Clara County Superior Court.

In its complaint with NAR, the Silicon Valley Association of Realtors states that SCCAOR made false or misleading representations about other Realtor associations, engaged in false, deceptive, or misleading advertising or marketing practices as well as illegal business practices, and knowingly violated local, state or national Realtor policies.

"The complaint was filed in order to prevent SCCAOR from further attempts to discredit my client through deliberate, or at the very least, negligent and/or reckless misstatements," said Kent Westerberg, attorney for SILVAR.

Westerberg accused the Santa Clara Association of Realtors of "continued attempts to damage SILVAR's reputation, to interfere with the legitimate business interests and prospective economic advantage of my client, and to cause us financial harm."

Westerberg also announced that SILVAR is filing a motion in Santa Clara County Superior Court to have SCCAOR attorney Ron Rossi of Rossi, Hamerslough, Reischl & Chuck removed as attorney of record from a related lawsuit pending before the court.

The filing states that in 1998, Mr. Rossi "was asked to resign as attorney for the Silicon Valley Association of Realtors due to a conflict of interest," and that he has a similar conflict in this case.

The Superior Court lawsuit was filed by SCCAOR in August 2005, shortly after the Santa Clara Association decided to stop licensing an online real estate transaction forms service provided by a SILVAR subsidiary, PRDS.

As a result of SCCAOR's decision, over 8,000 local Realtors were barred from accessing the service, which before had been offered as a member benefit. PRDS forms are the transaction form of choice for most real estate practitioners in the Silicon Valley region.

Usage has increased every month since the service was introduced two years ago, and SCCAOR members had 1252 open transactions in the system when they were cut off. Because SILVAR (and the San Mateo County Association of Realtors) continues to provide the forms service as a free membership benefit, many SCCAOR Realtors have joined the neighboring association.

"The lawsuit filed by SCCAOR is completely unmeritorious," said Westerberg. "I believe the Santa Clara Association is trying to blame SILVAR for the member losses that followed from their business decision to drop the forms service. We are puzzled by why they would drop a service their members value, but yet are willing to spend members' money on completely avoidable legal fees."

"We believe SCCAOR has a right to discontinue the PRDS online forms service, but not a right to disparage the service or our association, " said SILVAR's president Willi Krauss. "SILVAR is committed to preserving competition in the forms market. We think having a choice benefits all Realtors." [583 words]

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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.

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

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