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REALTOR®: REALTORS® keep up with legislation affecting clients

Wednesday, August 8, 2012

Silicon Valley REALTORS® continually strive to keep up with the latest legislation, so they can, in turn, educate their clients on new developments that impact homeownership.  More than 40 real estate brokers and managers, members of the Silicon Valley Association of REALTORS®, gathered in nearby Menlo Park this week for a legal update presented by California Association of REALTORS® assistant general counsel Gov Hutchinson.

Hutchinson addressed the "Homeowner Bill of Rights," the latest piece of legislation signed into law last month. The suite of new rules contained in the legislation makes California the first state in the country to take provisions in the National Mortgage Settlement, which covered the nation's five largest mortgage loan servicers, and apply those rules to all mortgage servicers.

Hutchinson praised the component in the legislation that prohibits lenders from engaging in dual tracking. Lenders can no longer continue with foreclosure while they are also reviewing a homeowner's application for a loan modification. The law also requires a single point of contact for borrowers seeking foreclosure prevention alternatives. Lenders must likewise notify a borrower before taking action on a loan modification application or pursuing foreclosure. These components are designed to halt the abusive tactics of loan servicers and protect struggling homeowners who are trying, in good faith, to renegotiate their mortgages.

Hutchinson explained the California Association of Realtors is concerned about a provision in the law that provides borrowers with the right to sue lenders for material violations of this law because it could encourage the filing of lawsuits intended for delay and further discourage lending.

Another law Hutchinson shared that could affect some consumers is AB 1511. In response to the San Bruno PG&E pipeline explosion a couple of years ago, effective July 1, 2013, real estate agents or sellers are required to notify homebuyers that they can view the National Pipeline Mapping System in the U.S. Department of Transportation website (http://www.npms.phmsa.dot.gov) for information on the location of pipelines near a property.

A law that went into effect at the beginning of this year requires sellers to disclose whether the property has water-conserving plumbing fixtures (low-flow toilets, shower heads, and faucets). Hutchinson said the law also states by Jan. 1, 2017, a single-family residence built on or before Jan. 1, 1994 must generally be equipped with water-conserving plumbing fixtures. If the single-family residence is altered or improved on or after Jan. 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval.

A law that requires landlords and homeowners to install a carbon monoxide detector in all dwelling units that contain a fossil fuel burning heater, appliance, or fireplace, or that have an attached garage in single-family homes will be extended to all other dwelling units, including multi-family residences, effective Jan. 1, 2013.

Silicon Valley is the "ground zero for multiple offers," said Hutchinson.  He reminded brokers that the REALTOR® Code of Ethics requires REALTORS® to present all offers to a seller up to the close of escrow, unless the seller has given them specific instructions not to present an offer. Listing agents also need to acknowledge that they received another agent's offer within 24 hours.


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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