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Thank you for registering for the Breakfast with the City Managers, presentations enclosed.

Thank you for attending SRCAR’s Breakfast with the City Managers event! We were very excited to see a sold-out crowd and hope you found the event informative and helpful for your business.  As promised, each of the city’s presentations can be accessed by the links below.  

• Canyon Lake: PDF(6MB)
• Lake Elsinore: PDF(26.4MB)
• Menifee: PDF(5.6MB)
• Murrieta: PDF(15.2MB)
• Temecula: PDF(11.2MB)
• Wildomar: PDF(5MB)
• All PDF’s

Feel free to share this with anyone in your group that you think would benefit from this information. 

Save the date for next year’s event!  We will be back at Pechanga on Thursday, February 29, 2024, with the same great program and updates from our City Managers!

New California Real Estate Laws in 2023

Written By: Bradley Greenman, Attorney at Law & John V. Giardinelli, Attorney at Law | Of Counsel

With each new year comes new and revised evolutions to existing real estate laws. Similar to our article updating the new real estate forms, which have gone into use in December 2022, this article will examine some of the new laws the State of California has passed that affect membership. The changes noted are important for practitioners and consumers. This article intends to provide a brief overview of some of the changes taking place in the laws governing California Real Estate. Information on these new laws comes directly from the California Department of Real Estate. This is a small sample of the Bills signed into law.

Assembly Bill (“AB”) 1410 | Common Interest Developments

AB 1410 will modify California Civil Code section 4750, and add to sections 4739, 4754, 5101, 5870, 5875, 5880 to the Civil Code.  The changes to this law addresses some concerns brought about by social media. For example, governing documents for a homeowner’s association (“HOA”) can no longer prohibit members of the HOA from discussing their common interest development (“CID”) on social media, including critical discussion and speech of the association or its governance. Additionally, AB 1410 will render unenforceable any provisions of HOA documents that limit owners of an owner-occupied space from renting that space for more than 30 days. Finally, considering the COVID-19 pandemic, the new law also bans enforcement actions brought by the association against non-compliant members during a declared emergency, if that emergency makes it unsafe to comply. Importantly, this new law does not apply to the non-payment of assessments.

AB 1837 | Residential Real Property: Foreclosure

This new law changes parts of the process defined in Senate Bill (“SB”) 1079 in 2020. The older versions of the law allowed existing tenants, prospective owner-occupants, non-profit organizations, and local governments, to name a few, up to 45 days after a home foreclosure auction to make an offer that meets the winning bid. Specifically, the new law modifies the types of non-profit entities that qualify and excludes certain limited liability companies (“LLC”s) and all limited partnerships from bidding. There is also a provision that allows certain eligible bidders to create affordability covenants. The new law also creates a new enforcement mechanism for the SB 1079 process through the Attorney General, county counsels, city attorneys, or district attorneys, which enables the enforcement of the provisions of the AB 1087 through specific performance or any other remedies that law and equity provide. 

AB 2170 | Residential Real Property: Foreclosure Sales

Under AB 2170, there will be an initial 30-day window for eligible bidders to purchase properties acquired by lending institutions through foreclosure. The new law will require institutions that foreclose on 175 or more properties per year to accept offers from prospective owner-occupants, qualified non-profits, government entities, and other affordable housing providers for the first 30 days after a real estate owned (“REO”) property is listed for sale. REO meaning properties that are acquired by lending institutions through foreclosure auction sales. Further, under the law, lenders must respond to all offers in writing and they cannot bundle more than one foreclosure in single sale. Under AB 2170, a “bundle” is defined as, “the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust.” (Civ. Code, § 2924p(b)(1))

AB 2503 | Landlords and Tenants: California Law Revision Commission Study

This new law will charge the California Law Revision Commission with delivering a study to the California Legislature, which examines the establishment of consistent terms used in California law to describe parties to an agreement, lease, or contract for the rental of residential real property. This law will also apply to language and terminology used in contracts and agreements for lease or rental of mobile homes.

AB 2559 | Reusable Tenant Screening Reports

New AB 2559 defines the elements that reusable tenant screening reports must contain. Under the new law, “reusable screening report” is defined to mean a report that:

Was prepared within the previous 30 days by a consumer reporting agency at the request and expense of an applicant[;] [i]s made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer reporting agency[; and] [i]s available to the landlord at no cost to access or use. (Civ. Code, 1950.1(e)(6)(A)-(C).)

Additionally, landlords will be prohibited from charging fees if they accept a reusable screening report; although, it does not require them to accept a reusable screening report. Further, any local rules that provide more protection to the applicant will prevail.

AB 2745 | Real Estate Broker’s License

This bill changes the experience requirement for sitting for the real estate broker’s exam. Under the new rule, any general, non-licensed real estate experience used by the candidate to qualify for the exam must occur within five years of the examination application date.

AB 2960 | Judiciary Omnibus

AB 2960 clarifies that any real estate disclosure statement requirements effective on the date the sales contract is entered into will control the contract through its completion. This is the case even when real estate disclosure requirements are changed by statute after the contract is entered into but before complete performance is rendered.        

Senate Bill (“SB”) 1005 | Conservatorship: Sale of Personal Residence

This Senate Bill clarifies the Probate code regarding how a conservator or guardian may bring a partition action when the property is the conservatee’s present or former personal residence.

SB 1017 | Leases: Termination of Tenancy for Abuse or Violence

SB 1017 clarifies tenancy protections for victims of domestic violence or abuse. Included in the protections is a provision, which allows tenant victims to terminate their tenancy without penalty, and protection from eviction based solely on the acts of violence or abuse against them. Further, it extends eviction protection to tenants whose family members are the victims and to victims of crimes involving bodily injury or guns. Additionally, under the new law, landlords can be liable in civil actions to the tenant for actual damages and a fine up to $5,000 for not allowing a victim, who followed proper notice requirements under the law, to terminate their tenancy without penalty. Finally, changes to evidence release dates concerning eviction proceedings by expanding the evidence, courts can properly consider as proof of abuse or violence in eviction proceedings. It also establishes new court procedures for granting a partial eviction when the perpetrator of the abuse or violence resides in the same unit as the victim.

SB 1495 (not effective until January 1, 2024) | Professions and Vocations

This law changes the substance of the real estate practice course, which is required for all applicants to the real estate salesperson or broker examinations. There are two new additions to the practice course. First, the practice course will now include specific training and education for implicit bias, including but not limited to training on: explicit bias; systemic bias; historical and social impacts of bias; and steps students can take to address their own biases. Second, the practice course will now include training on state and federal fair housing laws and their practical application to practice of real estate. This second component includes a section where there is a role-play in which the student acts as both consumer and real estate professional. Finally, one minor change included in SB 1495 is the extension of the deadline for a licensee to publish a statement in their local newspaper that they will be using a fictitious business name. The deadline is increased from 30 to 45 days under the new bill. Note: this law will not take effect until January 1, 2024. 

Courtside Newsletter: New and Revised C.A.R. Forms in 2023

Written By: Bradley Greenman, Attorney at Law & John V. Giardinelli, Attorney at Law | Of Counsel

California real estate laws and practices are constantly evolving.  At the forefront of the industry is the California Association of REALTORS® (“C.A.R.”), who, among other things, provides standardized forms utilized by professionals and practitioners in most areas of real estate practice.  This Newsletter notes revisions to existing forms that range from minor organizational and formatting changes to important substance and language changes, which render old versions of the forms out of date.  There are also a number of forms in both spheres, released December 19, 2022, that are completely new.  Note: information about the changes noted in this newsletter comes directly from C.A.R.

Residential Purchase Agreement and Joint Escrow Instructions (“RPA”)

There are a number of changes to this form. In terms of the more minor changes to the form, in paragraphs 3E(1) and (2) the language was changed so there was no default for points. A new “optional” paragraph was added as 3G(3) which allows the buyer to ask the seller to pay for the buyer’s broker. Paragraph 3M(3), which deals with units that are occupied by persons other than the seller, now contains an advisory applicable to counter offers that sellers should add TOPA to the counteroffer if a tenant or occupant did not check the box to add the form. Additionally, paragraph 7(a) includes new language in which the unit the buyer intends to occupy needs to be vacant at the time of possession and requires the buyer to identify the unit if there are more than one. Further, some clarifications were made, including under paragraph 9B(2), where the term “window coverings” was changed to now explicitly include window hardware and rods. 

An entirely new section to assist sellers has been added in paragraph 11M.  The section “requires seller to give buyer known information about anysolar system.”  This obligation can now be accomplished through using the new SOLAR form, discussed in more detail below. Paragraph 12B(3) was altered to make reviewing seller documents its own contingency, now articulated in paragraph 8D.

Paragraph 23 was edited adding language which now requires parties to notify escrow of any assignments.  Under the revision, the nominee will be treated the same as an assignee.  Finally, the “Agent Signature lines” in the Real Estate Broker Section (which denotes the email, phone, and address of each brokerage) was updated allowing brokers to designate an electronic delivery as the phone or email provided in the signature line or through providing a different one by way of checking the appropriate corresponding box. In making these changes, the C.A.R. noted that prior forms can still be used.

Buyer Representation and Broker Compensation Agreement (“BRBC”)

In the most significant addition, the C.A.R. replaced the Exclusive Buyer Representation Agreement form (“BRE”), the Non-Exclusive Buyer Representation form (“BRNE”), and the Not-for-Compensation Buyer Representation Agreement (“BRNN”) in their entirety with this new BRBC form.

Under the new consolidated form, there is no “not for compensation option.”  Additionally, paragraph 1 of the BRBC notes, the buyer representation period will only last for the number of days specified.  Under paragraph 4B(1), the form predisposes “non-exclusive representation” entitling the broker to compensation only when there was “‘Broker Involvement’” in the purchase of the property.

Next, paragraph 4B(2) creates an optional “exclusive representation[,]” which would entitle the broker to compensation upon the buyer’s purchase of property during representation “with or without” the broker’s help.  Paragraph 4C gives either the buyer or the broker the right to cancel the agreement. One holdover from the BRE, BRNE, and BRNN worth mentioning is paragraph 4D(1).  This paragraph credits, against the buyer’s compensation obligation, any payments to the broker from the seller’s broker or from the seller.  Additionally, paragraph 4D(3) authorizes the broker to include a term asking for the seller to pay the buyer’s broker.  Finally, under paragraph 4(F), an obligation is imposed on the buyer’s broker to disclose any compensation the broker expects to receive from others on a particular property, and an obligation to disclose any compensation the broker actually ends up receiving.

Cancellation of Buyer Representation (“COBR”)

The COBR form is a new form where either the buyer or the broker can give notice of the cancellation of the representation agreement.  Functionally, there are two parts.  Part 1 provides notice of the cancellation, requiring a signature.  Additionally, Part 1 identifies any outstanding compensation due to the buyer’s broker.  Paragraph 3A relates back to the BRBC form discussed above and applies to any applicable property or to any property where broker involvement can be identified.  The form notes multiple valid forms of just compensation, including: “just expenses incurred (3B), broker receiving a referral fee (3C), broker getting paid from the seller (3D), or no compensation at all (3E)[.]”

Anticipated Broker Compensation Disclosure (“ABCD”)

Facilitating some of the changes encapsulated in the new BRBC form (which replaced the old BRE, BRNE, and BRNN forms), the ABCD form puts together the broker disclosures required under paragraph 4(F) of the BRBC form.  In Part 1 of the form, there is a new advisory to the buyer that any compensation to the buyer’s broker through the seller, or through the seller’s broker, “may impact the price the seller will accept[.]”  Part 1 also notes the obligation of the buyer’s broker to reveal promised compensation on a property-by-property basis.  Part 3 of the form provides a portion where the broker discloses the actual compensation they received.

Buyer Transactional Advisory (“BTA”)

This is a new form intended to help buyers.  It may prove to be an excellent “Risk Management tool.”  The BTA is bundled with the new BRBC form, and it outlines the responsibilities and limits of agents and buyers respectively.  The purpose of this new form is to provide buyers with more information concerning the buyer-agent relationship.

Notice of Broker Involved Properties (“NBIP”)

Upon the termination of the representation, this form comes into play when there was a period of protection provided, “or within 5 days after either the buyer or broker cancels the BRBC.”

Seller’s Payment to Buyer’s Broker (“SPBB”)

This new form works in conjunction with the RPA form when paragraph 3G(3) (discussed in detail above) is checked.  The form identifies the precise amount of compensation the buyer is asking the seller to pay the buyer’s broker and does not allow for the broker to receive double payment.

Designated Electronic Delivery Address Amendment (“DEDA”)

This new form facilitates the RPA by providing a designated electronic address for delivery of documents when the fields were left blank in the RPA or to change addresses which were provided in the RPA.

Non-Contingent Offer Advisory (“NCOA”)

Here is an entirely new advisory which notifies a buyer of the risks of making offers without contingencies.  Further, to the end of fully informing buyers, the form provides a description of the contractual value of loan contingencies (paragraph 2A), appraisal contingencies (paragraph 2B), and investigation contingencies (paragraph 2C). 

Solar Advisory and Questionnaire (“SOLAR”)

This important new form has two parts.  In the first five paragraphs, there is an advisory discussing the most common types of solar panels and the most common agreements for owning or leasing them; how payments for solar set-ups commonly work; a discussion of principles of what gets transferred in a real estate purchase; and an advisory on the importance of reviewing all documents and inspecting the system before purchasing.  In the second part of the form, there are twenty questions for the seller to answer to the full extent of their knowledge as to each.  It is intended to satisfy a portion of the seller’s duties set forth in the RPA.

Cancellation of Contract, Disposition of Deposit and Cancellation of Escrow (“CC”)

The updates to this form render it incompatible with previous versions.  The revisions to this form only concern paragraph 1B, “Proposed Mutual Cancellation,” where new language sets a time for the recipient to respond and, if the timeline is not met, the proposal is then expired.

Seller Counter Offer (“SCO”)

Language was added to the SCO form in paragraph 1B, which clarifies that seller credits in the offer remain unchanged even if the purchase price changes.  Further, changes were made to paragraph 1C clarifying that the difference between the offered price and the appraisal contingency amount will remain the same, even in the event the purchase price changes.  Older versions of this form are incompatible with these new updates.

Seller Multiple Counter Offer (“SMCO”)

Here, the changes to the SMCO mirror those changes which were made to the SCO form discussed above.  Paragraph 1B was changed to clarify that the seller credits in the offer remain unchanged in the event of a purchase price change.  Similarly, paragraph 1C clarifies the difference between the offered price and appraisal contingency amount remains the same in the event of a purchase price change.  Much like the SCO form, the older versions of the SMCO are not compatible with these new updates.

Below is a discussion of the changes to the C.A.R. standardized forms, which are utilized in lease and rental agreements.  Here, much like the changes to the C.A.R. forms utilized for purchase agreements; the changes fall on a spectrum from minor to significant to entirely new forms.  Note: information about the changes to these forms comes directly from C.A.R.

Lease Listing Agreement (“LL”)

Here, the relevant changes made to LL form render the previous revisions of the form incompatible.  Throughout the entire form, the term “owner” has been replaced by the term “Rental Property Owner.”  Additionally, the new Rental Property Owner Disclosure Form (“RPOD”) is tied into this form by reference.  The new RPOD replaces the old owner disclosure paragraph.  Additionally, paragraph 3E was added to the LL form as an optional paragraph to allow for broker compensation in the event the tenant acquires the property during the term of the tenancy.  Under paragraph 4A, the form specifies whether the tenant’s initial payment goes to the rental property owner or to the broker.  Finally, an indemnity paragraph was added “to be consistent with the Property Management Agreement [form].”  See discussion below of the relevant changes to the Property Management Agreement form.

Property Management Agreement (“PMA”)

Similar to the revised LL form, these new PMA revisions render the older versions of the form non-usable.  Here, also like the new LL form updates, the term “Owner” is replaced throughout with the term “Rental Property Owner[.]”  Another parallel change to those made to the LL form is that the owner disclosure paragraph has been replaced by the new RPOD form discussed below.  A unique change to the PMA is that paragraph 1B(2) does not allow termination of the agreement for cause by either party at any time.  Additionally, paragraph 3G expands indemnification for certain ongoing payments (i.e., property taxes mortgage payments, HOA fees, etc.) to be paid by the Rental Property Owner, absent willful misconduct or gross negligence on behalf of the property manager.  Under paragraph 4F, if the Rental Property Owner does not purchase liability insurance, the Property Manager may do so and then charge the Rental Property Owner for the expense.  Additional “[o]ptional compensation clauses” were added in paragraph 7, accounting for pre-litigation fees, onboarding fees, cancellation fees, and file closing fees.  Paragraph 11 assigns the responsibility of paying attorney’s fees to each side respectively.  Finally, paragraph 14 added an option right of the Property Manager to alter the PMA on 30-days’ notice, leaving a right to the Rental Property Owner to object and cancel the agreement without applying a cancellation fee.

Rental Property Owner Disclosure (“RPOD”)

This is a new form which functions in a similar manner to a Seller Property Questionnaire (“SPQ”) for Rental Property Owners.  For example, in paragraph 4, the form asks for the Rental Property Owner’s knowledge about eight statutory based disclosures, including, but not limited to: deaths on the property; lead-based paint disclosure; and pest control disclosures.  Paragraph 5 inquiries into the Rental Property Owner’s knowledge of nineteen non-statutory based disclosures, including, but not limited to: pets, parking, permits, and bed bugs.  This form was drafted for the purpose of informing the lease listing agent or property manager of the condition of the property, and not for delivering to the tenant.  The form is delivered to the Broker.

Residential Lease or Month to Month Rental Agreement (“RLMM”)

Here, the RLMM form replaces the LR form, and previous revisions are no longer usable in light of the changes.  Notably, the terms Rental Property Owner, Authorized Broker or Agent, and Property Manager are all now referred to as “Housing Provider[.]”  The C.A.R. noted that these changes were made to get away from the use of the term “landlord[,]” which it noted, “has a negative connotation.”  In addition to the changes in verbiage, paragraph 5 added more language on the limits of receiving multiple rental payments in advance.  Additionally, a warning for tenants was added about removing photos and other valuables that they would not want visible in photos or videos marketing the property online.

Application to Lease or Rent/ Screening Fee (“LRA”)

The LRA form now includes the word “Lease” such that it applies to both lease and rental applications.  Additionally, general formatting changes were made to the form including moving information about the property address, rental amount, and the proposed move-in date for the premises being sought, from the “tenant information section I” to the “Screening fee section II[.]”   Similar to the other forms in the rental and lease agreement area of practice, the terms “Owner[,]” “Authorized Broker or Agent[,]” and “Property Manager” are now collectively defined as “Housing Provider[.]”  Additionally, the maximum screening fee is now $52.46.  The changes made to LRA form render previous versions of the form incompatible.

California Consumer Privacy Act Advisory, Disclosure and Notice (“CCPA”)

Changes made to the CCPA form helped shorten the form.  Additionally, a URL link was added to the form to allow quick access to research of any enacted regulations concerning consumer privacy.  Older versions of the form are rendered incompatible with these updates.

Extension of Time Amendment (“ETA”)

Here, much like the changes to the CC form discussed above, language was added establishing a time for the recipient party to respond by.  Failure to respond by the timeline means the proposal to extend time expires.  The word “addendum” has been replaced by “amendment.”  The new language can be found in paragraph 5 of the form.  Previous versions of the form are no longer compatible with the updates.

Residential Lease After Sale (“RLAS”)

Changes made to the RLAS form are particularly relevant to any sellers staying in possession of the property without any charge.  Specifically, language was added to paragraph 5A advising of the maximum charge a security deposit can impose.  This change makes the form consistent with the RLMM form discussed above.  Other revisions to the form include adding language to the “condition of the property” paragraph for the seller/tenant to acknowledge the condition is as is disclosed in the purchase agreement.  Additionally, paragraph 14A was changed such that the seller/tenant is not responsible for smoking damage that already existed at the time the lease commenced.  Similar to other forms with substantial revisions this year, older forms are no longer compatible with this updated version.

2023 LEGAL NOTICES AND DISCLOSURES REGARDING DUES BILLING STATEMENT

LEGAL NOTICES AND DISCLOSURES REGARDING DUES BILLING STATEMENT

REALTOR® ACTION ASSESSMENT & FUND: Explanation and Legal Notice

California Association of REALTORS® (C.A.R.) Political Action Committees: C.A.R. sponsors four Political Action Committees (PACs). CREPAC is used to support state and local candidates to further the goals of the real estate industry. CREIEC is an independent expenditure committee that independently advocates for or against candidates in accordance with the interests of the real estate industry. CREPAC/Federal supports candidates for the U.S. Senate and House of Representatives. IMPAC supports local and state ballot measures and other advocacy oriented issues that impact real property in California. IMPAC is funded by your dues dollars. C.A.R. also supports the Advocacy Local Fund (ALF), a non-PAC fund for expenditures on general advocacy activities.

* REALTOR® Action Assessment (RAA): This mandatory $69 state political assessment may be satisfied in one of two ways: either (1) a voluntary contribution to CREPAC, CREIEC, and/or IMPAC and/or other related political purposes or (2) a designation of the funds for political purposes in the C.A.R. general fund. You may include the entire amount on one check and if you do so, $69 will go into CREPAC, CREIEC and/or IMPAC, or other related political purposes. If you have an assessment that is over $138 due to your DR nonmember count, then any amount over $138 contributed to the state PACs (i.e. CREPAC, CREIEC and IMPAC) will go into CREIEC. If you choose not to contribute to a PAC, you must do so in writing and the entire assessment of $69 will be placed in the C.A.R. general fund and used for other political purposes. PAC contributions from the REALTOR® Action Assessment will be allocated among CREPAC, CREIEC, IMPAC and possibly ALF. The allocation formula is subject to change. Payment of the assessment is a requirement of maintaining membership.

¤ REALTOR® Action Fund (RAF): REALTORS®, and REALTOR-ASSOCIATES® may also participate in RAF by including an additional voluntary contribution on the same check as your dues and assessment payment. One-hundred and fourty-eight ($148) is the suggested additional voluntary contribution but you may give more, or less, or nothing at all. No member will be favored or disfavored by reason of the amount of his/her contribution or his/ her decision not to contribute. Contributions to the REALTOR® Action Fund will be allocated among C.A.R.’s political action committees (CREPAC, CREIEC, and CREPAC/Federal) according to a formula approved by C.A.R. depending on whether it is a personal or corporate contribution. The allocation formula is subject to change including re-designating a portion to IMPAC and ALF. Failure to contribute to RAF will not affect an individual’s membership status in C.A.R.

« For over 25 years, the SRCAR® Scholarship Foundation has awarded scholarships to outstanding, college-bound high school seniors in the Southwest Riverside County area whose family member(s) work within the real estate industry. Voluntary contributions may be deductible; please consult your tax professional.Political contributions are not deductible as charitable contributions for federal and state income tax purposes. Dues payments & assessments (Local Association, C.A.R., and NAR) and contributions to “REALTOR® Action Fund” are not tax deductible as charitable contributions. Contributions to the C.A.R. Housing Affordability Fund are charitable and tax deductible to the extent allowable under both Federal and State law. However, the dues portion of your bill, excluding the portion of dues used for lobbying activities, REALTOR® Action Assessment and REALTOR® Action Fund, , may be deductible as ordinary and necessary business expenses. Please consult your tax professional.

<3 Help Make a Difference with our local food pantries. Hearts for Hunger food drive raises awareness and funds that will be donated directly to local food pantries. No one should ever starve, and with your help we can make sure we’re doing out part to curb the hunger.

CORPORATE CONTRIBUTIONS to C.A.R.’s PACs are permissible and may be used for contributions to state or local candidates or for independent expenditures to support or oppose federal, state, or local candidates. However, current C.A.R. practice is to deposit all corporate contributions into CREPAC, CREIEC, IMPAC and possibly ALF in an allocation to be determined by C.A.R. A corporate contribution includes any contribution drawn from a corporate account.

PERSONAL CONTRIBUTIONS to C.A.R.’s PACs may be used for both state and federal elections and therefore may be deposited into CREPAC/ Federal in addition to all other C.A.R. political action committees. Up to $200 of a REALTOR® Action Fund contribution will be divided between CREPAC/Federal and CREPAC, CREIEC, IMPAC and possibly ALF in an allocation to be determined by C.A.R. Any amount above $200, up to applicable legal limits, will be allocated to CREPAC/Federal.

If you are a California major donor and need specific information regarding your contributions, please contact the C.A.R. Controller’s office at (213) 739-8252. Contributions in excess of the contribution limits will be reallocated to another PAC connected with C.A.R. Under the Federal Election Campaign Act, an individual may contribute up to $5,000 in a calendar year to CREPAC/Federal.

Political contributions are not deductible as charitable contributions for federal and state income tax purposes. Federal and State law prohibit any individual from making political contributions (either RAA or RAF) in the name of or on behalf of any other person or entity.

NOTICE REGARDING DEDUCTIBILITY OF DUES, ASSESSMENTS AND CONTRIBUTIONS

2023 ESTIMATED PORTION OF YOUR DUES USED FOR LOBBYING THAT ARE NON-DEDUCTIBLE:

Total Non-Deductible (Lobbying) Dues: $150.18

Dues payments and assessments for your local association, C.A.R. and NAR, and contributions to RAF are not tax deductible as charitable contributions. However, the dues portion of your bill, excluding the portion of dues used for lobbying activities, REALTOR® Action Assessment and REALTOR® Action Fund, may be deductible as ordinary and necessary business expenses. Contributions to C.A.R. Housing Affordability Fund are charitable and tax-deductible to the extent allowed under both federal and state law. Please consult your tax professional.

All dues, assessments, and fees are non-refundable.

+ C.A.R. HOUSING AFFORDABILITY FUND:

REALTORS® and REALTOR-ASSOCIATES® may make a voluntary, tax-deductible, charitable contribution to the C.A.R. Housing Affordability Fund (HAF) on the same check as the dues payment. HAF is a charitable nonprofit organization whose purpose is to address the statewide housing crisis. It receives contributions from REALTORS® and other individuals as well as businesses and other organizations and distributes funds through local associations of REALTORS® toward programs that increase homeownership and the supply of housing across the state.

HAF is exempt under Section 501(c)(3) of the IRS Code. Contributions to HAF from both individuals and businesses are charitable and tax-deductible to the extent allowed under both federal and state law.

Individual contributions are designated by ‘Keys to California’ Pins: Ambassador ($25), Bronze ($100), Silver ($500) with an option to renew annually for $250, Gold ($1,000) with an option to renew annually for $350, and Founder’s Circle ($1,500) with an option to renew annually for $500. For information about HAF, including major non-cash gifts or corporate sponsorships, visit www.carhaf.org or contact the HAF at 213-739-8200 or by mail at 525 S. Virgil Ave., Los Angeles, CA 90020.

YOUR SUBSCRIPTION TO CALIFORNIA REAL ESTATE MAGAZINE IS PAID FOR WITH YOUR DUES AT A RATE OF $6.00 AND IS NON-DEDUCTIBLE THEREFROM.