Sentrilock System Maintenance Notice

Dear Members,

On Tuesday, February 21st, 2017, SentriLock will be performing maintenance on its servers between the hours of 5:00 am and 6:00 am EST. This means that the system will be unavailable during this time including website, app, and the card utility. There will be no impact to data exchange by the maintenance period. If you have questions please feel free to contact support at 1-877-736-8745.

Thank you,
Sentrilock Support


Supra eKEY and iOS 10.2.1

Dear Customer,

 

Apple iOS 10.2.1

 

Apple recently released operating system iOS 10.2.1 for iPhones and iPads. We completed testing of the new iOS with the eKEY app and are happy to announce there are no issues.

 

Thank you,

Supra


December 2016 Courtside Newsletter: New Laws Affecting REALTORS®

Available for download in PDF.

BY: JOHN V. GIARDINELLI, ATTORNEY AT LAW
ASHLEY A. PLANCHON, LAW CLERK
CASEY MCINOTSH, PARALEGAL

The California Legislature has enacted several new laws that may affect REALTORS® and their practices over the next two years. This month’s Courtside Newsletter provides an overview of those laws and their potential impact.

Uniform Advertising – Assembly Bill 1650 [Effective January 1, 2018]

Under current real estate law, any solicitation materials published, circulated, or distributed by a real estate licensee performing an activity for which a real estate license is required must contain a disclosure to the effect that a real estate license is required for the activity. Furthermore, a licensee is also required to include his or her license number (and unique identifier for mortgage loan originators) on such materials that are intended to be a “first point of contact with consumers” and on real property purchase transactions in which he or she is acting as an agent.

In an attempt to create uniform standards across a variety of advertising mediums, Assembly Bill 1650 will amend Business & Professions Code § 10140.6. Effective January 1, 2018, a real estate licensee will also be required to disclose the responsible broker’s identity in addition to the licensee’s name and license number. (Again, if the licensee is a mortgage loan originator, the unique identifier must also be listed.) As defined in B&P § 10159.7, “responsible broker’s identity” means the name under which the broker is licensed by the California Bureau of Real Estate (CalBRE). The inclusion of the responsible broker’s identification number is optional.

“Solicitation materials” are materials intended to be the first point of contact with the consumer. The definition of such materials will also be redefined to include:

  • business cards;
  • stationary;
  • advertising flyers;
  • advertisements on television, in print, or electronic media;
  • “for sale,” rent, lease, “open house,” and directional signs; and
  • “other materials designed to solicit the creation of a professional relationship with a consumer.”

An exception to this rule is if the “for sale,” rent, lease, “open house,” and directional signs do either of the following:

  1. Display the responsible broker’s identity without reference to an associate broker or license; or,
  2. Display no licensee information (i.e. a generic sign).

A “refence” to an agent would be anything that names an agent in any way. It is important to note that a sign displaying no licensee information would likely be a violation of the National Association of REALTORS® (NAR) Code of Ethics Standard of Practice 12-5. (SOP 12-5 states that any advertising materials must disclose the name of the REALTOR®’s firm in a “reasonable and readily apparent manner.”)

This piece of legislation is considered to be the most important law affecting agents this session, and provides a year for all agents to become compliant.

Team Names – Senate Bill 710 [Effective August 28, 2016]

SB 710 amended Business & Professions Code § 10159.7 immediately to redefine the meaning of “responsible broker’s identity.” Previously, it had been defined as “a name and the associated license identification number under which the responsible broker is currently licensed and conducts business in general or is a substantial division of the real estate firm” (emphasis added). The Code will be amended to define it as the name or both the name and associated license identification number.

Per the California Association of REALTORS® (C.A.R.), this amendment now allows for only the responsible broker’s name to be displayed in all team name and agent-owned DBA advertising. Displaying the broker’s license number is optional. The team name and broker name must still remain equally prominent on all advertisements and first point of contact materials.

CalBRE Website Licensee Information – Assembly Bill 2330 [Effective January 1, 2018]

Currently, the CalBRE lists information regarding the status of every license issued by the Bureau pertaining to “brokers” and “salespersons.” Brokers are also required to immediately notify the Bureau when a salesperson enters into or is terminated from employment with the broker. AB 2330 will amend Business & Professions Code § 10083.2 to require CalBRE to include whether the licensee is an associate licensee. Per Civil Code § 2079.13, and associate licensee is a real estate broker or salesperson who is “either licensed under a broker or has entered into a written contract with a broker to act as the broker’s agent…and to function under the broker’s supervision…” The new statute will also require CalBRE to include whether the associate licensee is also a broker (i.e. a broker-associate), and to include information regarding the responsible broker under whom the associate licensee is acting. Responsible brokers will also be required to inform CalBRE if a broker-associate is engaged in or terminated from employment, as requirement that was missing from the previous law. This law will go into effect on January 1, 2018.

Disciplinary Action Records on CalBRE Profile – Assembly Bill 1807 [Effective January 1, 2018]

Any disciplinary action reported on a licensee’s profile on the CalBRE’s website is currently slated to remain there indefinitely. However, AB 1807 will amend Business & Professions Code § 10083.2 to allow licensees to petition CalBRE to remove the disciplinary action from the public profile. Per AB 1807, the petition will be accompanied by a fine, which will go into the Real Estate Fund, and could only be submitted at least 10 years after the violation was initially posted to CalBRE’s website. In the petition, the licensee must provide both justification for the removal and evidence of rehabilitation, which will indicate that the posting is no longer required to prevent a risk to someone utilizing the licensee in his or her capacity as a real estate agent. Review and granting of a petition is at CalBRE’s discretion, and CalBRE will also take into consideration other violations that could present a risk to the public that have arisen since the posting of the violation. There is no guarantee that the violation will be removed from the website following the submission of a petition. Licensees may begin submitting petitions January 1, 2018.

Death of Occupant Disclosure – Assembly Bill 73 [Effective September 25, 2016]

Prior to enacting AB 73, existing law merely stated that no cause of action would arise against a real property owner or agent or agent of a transferee for failure to disclose to the transferee that a death occurred upon the property or that an occupant had or died from Human T-Lymphotropic Virus Type III/Lymphadenopathy-Associated Virus. Under AB 73, Civil Code § 1710.2 was amended to clarify that the owner of a real property, his or her agent, or the agent of a transferee of a property is not required to disclose an occupant’s death on the real property if that death occurred more than three (3) years prior to the date of the offer to purchase, lease or rent the real property. Furthermore, the owner, his or her agent, or the agent of the transferee is not required to disclose that an occupant of the property was living with HIV or died from AIDS-related complications.

It should be noted that the three-years rule is not hard and fast. If a real property is particularly stigmatized and the value of the property is affected by a death that took place more than three years prior to the transaction, such a fact should be disclosed. For example, in the 1983 case of Reed v. King (145 Cal. App. 3d 261) the fact that the house was the site of a gruesome murder involving a woman and her four children ten years prior was a fact that affected the value of the home and should have been disclosed to the buyer. (It was not, hence the litigation.)

Additionally, if an occupant died from AIDS-related complications within the three years prior to the transaction, the law does not preclude the disclosure of the death. However, the owner and/or agent would not specify the manner of death, simply that it occurred on the property. An owner and/or agent is also not precluded from intentional misrepresentation. If a potential transferee asks if an occupant died on the property and the owner and/or agent has knowledge that a death occurred, he or she must answer truthfully. The C.A.R. Seller Property Questionnaire (SPQ) and the Exempt Seller Disclosure (ESD) forms cover disclosures.

This law took effect immediately on September 25, 2016, “in order to protect HIV and AIDS patients and the HIV/AIDS community from discrimination in real property transactions that may otherwise impose severe emotional distress…” Under federal law, people with HIV/AIDS are considered handicapped and protected from discrimination under the Fair Housing Act. The California Association of REALTORS® offers a Legal Q&A entitled “Disclosure of Death and AIDS” for further information regarding this topic and how it affects REALTORS®.

* * *

In an effort at brevity, not all new laws are covered here. As always, we encourage you to seek qualified legal counsel should you have any questions or concerns regarding the law and how it affects your real estate practice.

 

Available for download in PDF.


Supra eKEY and iOS 10.2

Dear Customer,

Apple iOS 10.2

 

Apple recently released operating system iOS 10.2 for iPhones and iPads. We completed testing of the new iOS with the eKEY app and are happy to announce there are no issues.

 

Thank you,

Supra


Supra eKEY Authorization Code new feature

Dear eKEY Customer,

We are very excited to announce a new way for an existing eKEY® user to obtain an eKEY authorization code.

Members that have an eKEY can now request an authorization code from within the eKEY app. This is useful if they are moving their eKEY service to a new phone or if they receive a 9B0D error when the eKEY gets out of sync with the server.

To obtain an eKEY authorization code from Mobile SupraWEB:

  1. Select the SupraWEB icon from within the eKEY app (on the 2nd page of icons), or navigate to supraweb.suprakim.com on your smartphone.
  2. Enter eKEY serial number. The eKEY serial number can be found at the top of the eKEY home screen.
  3. Enter 4-digit PIN.
  4. Select the Association/MLS from the dropdown list.
  5. Select Login.
  6. Select Authorization Code
  7. The authorization code will be emailed to the email address on file in SupraNET.
image008
image006

For more information on Mobile SupraWEB, please see the Mobile SupraWEB Guide:

http://www.supraekey.com/Documents/MobileSupraWEB_Guide.pdf

Regards,
Supra Support


C.A.R. Fall Business Meetings in Long Beach

BY: JOHN V. GIARDINELLI, ATTORNEY AT LAW
ASHLEY A. PLANCHON, LAW CLERK

In September, our firm had the privilege of attending the 2016 California Association of REALTORS® (C.A.R.) Business Meetings in Long Beach. The following discusses some of the highlights from those meetings.

PROFESSIONAL STANDARDS COMMITTEE

Regional Reports

A representative from each of the 32 Regions answered four questions presented by the Committee:

(1) Do your hearing panels consider whether or not a violation will be published on the C.A.R. website when determining what forms of discipline to impose in an ethics case?
(2) Do hearing panels sometimes impose less harsh forms of discipline because they do not want members of their association to be published on C.A.R. website?
(3) Are there any other ways C.A.R. Ethics publishing has an impact on the decision at the association?
(4) Do your associations have any unique professional standards programs or ethics training within your region?

The majority of the Regions answered “no” to all four questions presented. A few Regions answered “no” to the first three questions but stated that their associations did have some sort of training or professional standards program in place. These training programs included the ombudsman program, citation policy training, or basic ethics training. Some associations stated they are reluctant to impose a violation that would result in publication because they do not want to harm the reputation of their agents or face their members outside of the association.

Crafting Ethics Discipline

There was a presentation on crafting discipline with the goals in mind to build education, establish a deterrent, and provide vindication of unethical behavior. It was stated that associations need to strictly adhere to their policies and provide consistency over caution. Discipline can include Letters of Warning or Reprimand, training requirements, reasonable fines, Cease and Refrain orders, suspension of membership, remedial suspensions or expulsion from membership. Information on C.A.R.’s website should not be considered, and the violator’s membership file should not be reviewed until the hearing Panel finds a violation. Factors that should be considered when determining the sanction include, but are not limited to:

  • the nature of the violation;
  • the harm caused;
  • whether the violation was intentional or inadvertent;
  • any economic gain or loss;
  • the experience of the person committing the violation;
  • the violator’s previous history; and,
  • any mitigating or extenuating circumstances.

MEMBER LEGAL SERVICES

New Laws—Brokerages

In advertising, two new laws will come into effect regarding brokerages. Assembly Bill 1650 addresses uniform advertising standards and amends California Business & Professions (B&P) Code § 10140.6. AB 1650 “requires a real estate licensee to additionally disclose his or her name, license identification number, and responsible broker’s identity on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting as an agent in those transactions.” The Bill also expands the definition of “solicitation material” to include: “business cards, stationery, advertising fliers, advertisements on television, in print, or electronic media, “for sale,” rent, lease, “open house,” directional signs, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer.” This law will come into effect on January 1, 2018.

Senate Bill 710 addresses real estate licensees, fictitious business names, and team names and amended B&P § 10159.7. Current law requires “advertising and solicitation materials using a fictitious business name or that contain a team name to display the responsible broker’s identity.” SB 710 defines “responsible broker’s identity” to include the name or both the name and associated license identification number. However, it is important for REALTORS® to note that the Code of Ethics requires that the broker’s name be provided.

Under Assembly Bill 2330, which amends B&P §§ 10083.2 and 10161.8 and becomes effective January 1, 2017, the BRE will divide brokers, broker’s associates, and salespersons into separate categories for identification purposes.

Lastly, current law allows for any record of disciplinary action to be placed on a broker’s permanent record. AB 1807 will allow brokers to petition the BRE to have any disciplinary action removed after ten years and “for which the licensee provides evidence of rehabilitation indicating that the notice is no longer required to prevent a credible risk to members of the public utilizing licensed activity of the licensee.” This amends B&P § 10083.20 and becomes effective January 1, 2018.

New Laws—General

Senate Bill 1173 will amend the Civil Code to require that any non-complaint indoor water fixtures and faucets must be replaced with water-conserving plumbing fixtures as defined by the Code. Commercial property is required to replace any noncompliant plumbing fixtures on or after January 1, 2017. The deadline for commercial real property replacement will be January 1, 2021. This change is a condition of ownership, not a point of sale. There will also be an update to the Seller’s Questionnaire form that asks whether the seller is aware of any low-flow fixtures.

Finally, the Federal Aviation Administration (FAA) now requires drone users to have a Remote Airman’s Pilot Certification, which can be obtained through an approved FAA facility. All drone activity must remain below four hundred (400) feet.

Recent Cases

  • Horiike v. Coldwell Banker may be the most anticipated case for the real estate industry. The California Supreme Court heard oral arguments on September 7, 2016 to determine whether a listing agent working under the same brokerage as the buyer’s agent would owe a fiduciary duty to the buyer through the concept of dual agency. The Court seemed to have trouble understanding the concept of dual agency during in oral arguments. A decision from the Court is expected by December 1, 2016.
  • Gragg v. United States: The Court held that real estate professional may deduct rental losses from their taxable income only if they materially participate in rental activities. Without some record or evidence establishing the real estate professional as having material participated in the management of the rental property, the income is considered passive for tax purposes.
  • Morlin Asset Management LP v. Murachanian: The Court held that a tenant cannot be held liable to a landlord for injuries sustained by a worker in common areas. The landlord still has the duty to inspect and make safe all common areas on the property.
  • Weeping Hollow Trust v. Spencer: The Court found that a lender may be held liable for misrepresentation by its loan servicer. The Court found that this liability can be found under the theory of respondeat superior.
  • Vasilenko v. Grace Family Church: The Court held that a land owner may be liable for injury sustained on a third party’s property. In the instant action, Plaintiff sued the Church after he was struck by a car attempting to cross a street from the church’s overflow parking lot to get to the church itself. The overflow lot was owned by a third party, but the court found that the church may be held liable for Plaintiff’s injuries. In reviewing this case, it appears that the Court is expanding the concept of duty and liability of a landowner.

LEGAL AFFAIRS—NEW FORMS

Below are the most recent forms created and provided by C.A.R. for real estate professionals. They will be released in December 2016.

  • Early Occupancy Addendum
    C.A.R. is creating a Buyer Early Occupancy Addendum to provide regulation to the practice of early occupancy in which the Buyer takes possession of the property prior to the close of escrow. There is a large amount of debate regarding this issue, and while the concept is faulty, the forum may go a long way in attempting to provide some guidelines for those who do practice early occupancy.
  • Shared Agency Commission Agreement
    The Shared Agency Commissions Agreement was created for agents who, while not a member of a team, agree to share their commissions with one another on a particular purchase or sale of property. This form will allow agents an express agreement for a common practice.
  • Seller Property Questionnaire
    The Seller Property Questionnaire has been updated to include the knowledge of low-flow water fixtures and faucets inside the home pursuant to law concerning Water Conserving Plumbing Fixtures, as discussed above. The Questionnaire will now ask whether the seller was aware of any noncompliant plumbing fixtures on the property and whether such fixtures are water-conserving. This change will also be made to the Exempt Seller Disclosure form.
  • Wire Fraud Advisory
    The Wire Fraud Advisory is intended to make buyers and sellers aware of the need to exercise extreme caution when using wire transfers of funds and also some practical suggestions for safeguarding their transaction and private information. It is highly encouraged for agents to have their client receive it, read and understand it, sign it, and return a copy to their agent.
  • Residential Purchase Agreement
    Finally, an update was made to the Residential Purchase Agreement (RPA) in which the arbitration clause was removed. Agents encouraging their clients to sign that segment of the form could be considered the unauthorized practice of law. However, the mediation clause is still provided for in the Agreement.

Supra eKEY and iOS 10.1

Dear Customer,

Please share this information with your members who use an eKEY® with an Apple® device.

Apple iOS 10.1

Apple recently released operating system iOS 10.1 for iPhones and iPads. We completed testing of the new iOS with the eKEY app and are happy to announce there are no issues.

Thank you,
Supra


Supra Systems – All Clear

Dear Valued Customer,

 

We’re very sorry about the service interruption today.  There were several issues that occurred simultaneously.  We had a critical hardware failure that impacted both  primary and backup components of our system.  When we rolled into our separately hosted disaster recovery system, we experienced intermittent issues which affected KIM Voice and SupraWEB updates.  This issue was resolved by about 11:15 a.m. PDT, and the full restoration was complete by 3:00 p.m. PDT.

As part of our security upgrade, we have been migrating to a new system.  Some of the migration is complete and the balance will be done by the end of October.  We are postponing tonight’s upgrade in light of today’s outage.  We sincerely apologize for the impact this had on you and your members.  This is a priority for us and we are taking every effort to implement the needed changes proactively.

 

Sincerely,
Supra