Arcadia
REALTOR®
The Official Publication of the Arcadia Association of REALTORS®
PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA AND SIERRA MADRE
AIR Forms Review See page 8
Glendale Forest Lawn Tour See page 8
Young Professionals Networking - “Appy Hour” Charity Karaoke See page 11
MAY 2014
WWW.THEAAR.COM
VOL. 18, NO. 5
Arcadia
REALTOR®
REGULAR FEATURES 4 Events Calendar
4 From the CEO’s Desk Andrew Cooper, Chief Executive Officer
5 Attorney Comments Dave Freeman, AAR Legal Counsel
6 Market Matters
9 Affiliate Corner
“Do-It-Yourself Estate Planning - Avoiding Common Pitfalls” Romy Rahmanian, Esq., Law Office of Romy S. Rahmanian
10 Through the Lens
A Look at What’s Happening Around the AAR
Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006 626.446.2115 626.446.4072 FAX www.TheAAR.com
2014 ASSOCIATION OFFICERS
Mike Vachani {President} Joe Pacilio {President-Elect} Roy Blume {Vice-President} Sylvia Ramos {Secretary/Treasurer}
2014 ASSOCIATION DIRECTORS
Micah Adams Ryan Asao Andy Bencosme Kelvin Chang Margaret Garemore John Lee Mark Ramos Dave Scarminach Irene Yamagata -Bermudez
2014 C.A.R. DIRECTORS
Ryan Asao Andy Bencosme Margaret Garemore Joe Pacilio Randall Traw Mike Vachani Kelvin Wong
ARCADIA ASSOCIATION STAFF Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com
05.14
{ Arcadia REALTOR® | May | Two Thousand and Fourteen | Volume Eighteen | Number Five}
2
May 2014
Brenda Faltes Ext. 304 Director of MLS Data Integrity, Supra & Social Media Brenda@TheAAR.com Jamie Hu Ext. 309 Administration Jamie.Hu@TheAAR.com Stephanie Maertens Ext. 303 Director of Education, Publications & MLS Caravan Stephanie@TheAAR.com Maria Roberts Ext. 305 Director of Membership & Professional Standards Maria@TheAAR.com Jane Shriver Ext. 301 Director of Association Services Jane@TheAAR.com Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com
ON THE COVER 8
AIR Commercial Contract Forms Review A short recap of the AIR Forms Review event hosted by the AAR Commercial Committee
8
Glendale Forest Lawn Artwork, Museums & Churches A short recap of the guided tour of the Glendale Forest Lawn.
11
Tech / YPN Presents “Appy Hour” - Charity Karaoke What do you get when you mix a YPN Happy Hour and a Technology class? April featured Charity Karaoke
AAR Annual Membership Breakfast Meeting Wednesday, June 4th at 8:00 a.m. at the Arcadia Masonic Center
AAR Members and their clients are invited to participate in the AAR...
PAPER
SHREDDING DAY
for FREE bers Mem AAR their and ts! clien
Monday, May 19
10am - 2pm
Arcadia Association of REALTORS® Parking Lot 601 S. First Ave. Arcadia, CA 91006
Bring ALL your unwanted documents to this HUGE paper shredding event! • Drive-through service available • Tell your clients - they’re invited too and YOU can be the hero! • No need to remove paper clips, staples, folders, plastic covers or binding • All paper collected will be recycled
All materials will be safely shredded in compliance with ALL applicable laws and regulations.
50 W. Duarte Road, Arcadia CA, 91007
This event is provided by the Arcadia Association of REALTORS® as another Member Benefit!
2014 SPRING EGG HUNT & HEALTHY KIDS DAY The AAR sponsored and participated in Monrovia’s Annual Spring Egg Hunt and Healthy Kids Day was held on Saturday, April 19, 2014 at Recreation Park in Monrovia, CA. Activities include: Arts & crafts, face painting, carnival games, wellness activities, toddler play area, teen activities, musical entertainment and a visit from the Spring Bunny!
Sincere appreciation to our outstanding and hard working voulenteers, Mark Ramos, Sylvia Ramos, Hugo Torres, Cheryl Johnson, Mary Ellen Macias and Javier Rodriguez.
Arcadia REALTOR® Magazine
3
May Events Th 1
9:30 a.m. - Commercial / Investment Committee Mtg. 11:00 a.m. - Commercial Education & Networking Session
F 2
12:00 p.m. - 1:30 p.m. - AAR Speech Masters
M 5
8:30 a.m. - New Member Orientation
T 6 9:00 a.m. - 12:00 p.m. - “The 5 Most Productive Things You Can Do In Social Media” 11:00 a.m. - Global Real Estate Committee Mtg. 1:00 p.m. - 4:00 p.m. - “Lead Generation in the Internet World” W 7
8:30 a.m. - MLS Caravan 9:30 a.m. - Events 4 Charity Auxiliary Mtg.
Th 8
9:00 a.m. - 12:00 p.m. - “Borrow Smart, Retire Rich” 9:30 a.m. - 11:30 a.m. - “Discover Global Event” 1:00 p.m. - 4:00 p.m. - “Mastering the iPad for Real Estate”
F 9
9:00 a.m. - 12:00 p.m. - “Advanced Probate”
M 12
10:00 a.m. - 3:00 p.m. - CRMLS Training
T 13
11:00 a.m. - Tech / YPN Committee Mtg. 2:00 p.m. - 4:00 p.m. - zipForm Plus Training
W 14
8:30 a.m. - MLS Caravan 8:45 a.m. - Affiliate Committee Mtg. 9:30 a.m. - MLS Committee Mtg.
T 15
11:00 a.m. - 12:00 p.m. - Lunch & Learn Series Class
F 16
12:00 p.m. - 1:30 p.m. - AAR Speech Masters
S 17
10:00 a.m. - 12:00 p.m. - “Ask an Attorney”
M 19
10:00 a.m. - 2:00 p.m. - “Papershred Day”
T 20 10:00 a.m. - 11:00 p.m. - CRMLS: Homes Connect Overview 2:00 p.m. - Education Committee Mtg. W 21
8:30 a.m. - MLS Caravan 9:30 a.m. - Equal / Housing Opportunity & Public Relations Committee Mtg. 1:30 p.m. - Local Governmental Relations Committee Mtg.
Th 22 10:00 a.m. - 11:00 a.m. - How to Generate Leads using CRMLS Smart Solutions 1:00 p.m. - 2:30 p.m. - “Incorporating for Real Estate Agents” 5:30 p.m. - 9:30 p.m. - “All-In” for YPN Charity Poker Tournament
FROM THE CEO’S DESK Count Your Change If there’s one constant in life, it’s change. And by change I don’t mean the coins you receive from the barista at your favorite coffee place. I mean change as in transformation. Change is happening all around us every day. For a huge change we needn’t look any further than our own Association of Realtors®. As I’m very hopeful you are well aware by now, the Arcadia Association of Realtors® and the Pasadena-Foothills Association of Realtors® has agreed in principle to unify both associations into one, larger association. It’s important for us to embrace the fact that change is essentially good - there are term limits with our politicians for a reason. One of the most corruptive phrases we learned at some point in our lives is, “if it isn’t broke, don’t fix it.” These seven small words are largely responsible for impeding the selfimprovement and forward progress for countless numbers of people. If we aren’t constantly trying to improve, then we will forever be condemning ourselves to eternal life in the present. If we aren’t moving forward we’re moving backwards. The potential unification would provide our members the following: A full-time government affairs director; an N.A.R. director; 4000+/- members equaling critical mass & increased influence; expanded political advocacy; a new position of power and strength; stronger recognition on local, state and national levels; a louder legislative voice; expanded financial resources; membership in the 13th largest association in California; a 501(c)3 nonprofit corporation; increased member benefits and services; increased community awareness; continued good neighbor with PFAR with strong relationships; compatible marketplace and organizational culture; being proactive in an ever-changing real estate environment. We will have a special Annual Membership Meeting on Wednesday, June 4, at 8:30 a.m. to collectively vote on this unification. The meeting will take place at the weekly Wednesday morning MLS Marketing/Caravan meeting (Continued on Page 5)
May Events Cont. W 28
9:00 a.m. - 5:00 p.m. - “How to List and Sell Commercial / Investment Property” 9:00 a.m. - 5:00 p.m. - “Accredited Buyer Representative (ABR®) Designation” 6:00 p.m. - 8:00 p.m. - Tech / YPN “Appy Hour” 8:30 a.m. - Board of Directors Mtg.
M 26
AAR Office Closed for Memorial Day
T 27
1:30 p.m. - Budget and Finance Committee Mtg.
Th 29
W 28
8:30 a.m. - MLS Caravan
F 30
4
May 2014
Attorney Comments May 2014
By Dave Freeman, Association Counsel DANGEROUS CONDITIONS: Many older properties and some relatively new ones contain dangerous conditions that may lead to a lawsuit, even though they were legal and permitted when built. Older rental properties, particularly Spanish style, had openings similar to a window in the entrance. The bottom was frequently only a foot or two above the walk area of the entrance. Unsupervised children have been known to fall through these openings to the ground below. Even on the first floor this can cause substantial harm, particularly if there are dangerous bushes and branches below. Have your clients review their properties, look for these potential hazards and maybe invite the insurance company to give you some pointers (They’ve seen it all). DOG BITES: It used to be that you got one free bite. That was the way the rule was described. What it meant was, until you had reason to believe that your dog had dangerous propensities, you might escape liability for its bad acts. Now, the rule is that you are liable for the first bite. Bodily injury attorneys love these cases, because juries can be very
sympathetic. Solution: Be sure dogs are kept in controlled places where they are not free to roam and attack, even on your own property. It is possible that uninvited guests may drop in, keep pets on a leash when off premises. Insurance is an obvious must, but many folks don’t realize their insurance probably doesn’t cover dog bites! Review your policy with your agent and have him/her point out what it does cover regarding this issue. And be aware, if you let your insurance lapse and the bank picks up insurance, they are only covering damage or loss of their asset (hazard insurance), not your liability, even though you end up paying for the coverage. FIRES: There are many things to consider regarding fires, whether you own a residence, apartments, or commercial property. I will only mention three: A) Fire extinguishers in rental properties are required by law. But you also want to have one or more in your home. They must be regularly checked, recharged or replaced. If a fire starts and this is deficient, the
owner could be liable for very large damages to any occupants and for the loss of the asset. B) While security from intruders is important today, it is mandatory that any person be able to exit the property without having to use a key. Many folks do not wish to have a switch that an intruder can reach by breaking a window in the door to unlock the door. But it is the law that there must be such a switch that can be accessed by anyone in the building to unlock the door to exit in case of fire. C) Multi-story buildings (residential, apartments, commercial) often have stairways that access the roof. Landlords don’t want tenants on the roof, damaging the roof and creating a high danger situation. But you can’t just lock the door!? Doesn’t make sense, does it? You want to prevent the children in your apartment building from playing on the roof. Insurance companies will tell you the proper procedure is to place obvious signs prohibiting roof access, distributing notices to the tenants, and placing an alarm that sounds if the door is opened.
(Continued from Page 4)
at the Masonic Center, 50 Duarte Road, Arcadia. I highly encourage you to attend so that you have the opportunity to vote. Lastly, we will have special Town Hall meetings to discuss the details of this possible unification again, at the weekly Wednesday morning MLS Marketing/Caravan meetings on May 7th. More Town Hall meetings will be held at the AAR Building on Tuesday, May 20th at 5:30 p.m. and Friday, May 23rd at 11:30 Andrew Cooper a.m. Your attendance is highly encouraged! Chief Executive Officer Arcadia REALTOR® Magazine
5
Market
Matters
Market Statistics for the San Gabriel Valley Single Family Homes
City
6
Zip Code
March 2014
Condominiums
Price % Sales of Chg from Single Family Price Median March Homes SFR ($1,000) 2013
Alhambra
91801
11
$569
-3.0%
Alhambra
91803
10
$527
Altadena
91001
34
$535
Arcadia
91006
33
Arcadia
91007
Azusa
Price Median Condo ($1,000)
Sales Count Condos
SFR Only
Price & Chg from Median March Home Price/ 2013 Sq. Ft.
9
$418
14.5%
$411
32.6%
1
$450
3.4%
$374
10.3%
n/a
n/a
n/a
$424
$1,388
45.3%
5
$700
11.3%
$556
25
$1,450
15.1%
6
$513
30.7%
$687
91702
20
$315
3.3%
12
$265
19.8%
$288
Duarte
91010
9
$450
31.6%
4
$292
3.2%
$361
El Monte
91731
8
$323
0.8%
1
$180
-44.9%
$296
El Monte
91732
8
$343
2.9%
8
$318
17.8%
$280
El Monte - South
91733
5
$319
-13.3%
n/a
n/a
n/a
$288
Glendora
91740
15
$400
11.1%
4
$328
20.2%
$289
Glendora
91741
25
$520
5.7%
3
$390
21.3%
$304
La Ca単ada Flintridge
91011
26
$1,315
12.6%
1
n/a
n/a
$615
La Verne
91750
23
$500
-7.0%
5
$205
n/a
$304
Monrovia
91016
16
$568
25.5%
7
$440
22.2%
$411
Pasadena
91101
n/a
n/a
n/a
12
$500
29.9%
n/a
Pasadena
91103
20
$432
9.4%
7
$550
6.3%
$400
Pasadena
91104
21
$625
17.4%
n/a
n/a
n/a
$476
Pasadena
91105
11
$925
-20.9%
6
$595
9.1%
$625
Pasadena
91106
8
$1,146
49.8%
20
$458
24.0%
$733
Pasadena
91107
23
$964
47.7%
5
$565
61.9%
$511
Rosemead
91770
18
$471
12.7%
4
$407
32.0%
$352
San Gabriel
91775
16
$843
38.1%
n/a
n/a
n/a
$476
San Gabriel
91776
10
$529
9.5%
5
$420
25.4%
$521
San Marino
91108
14
$2,340
46.7%
n/a
n/a
n/a
$848
Sierra Mdre
91024
8
$968
32.2%
1
$440
-18.5%
$531
Temple City
91780
21
$637
15.4%
5
$590
34.1%
$454
Source: DQNews.com
May 2014
Arcadia REALTOR速 Magazine
7
Glendale Forest Lawn Artwork & Museums and Churches
GUIDED TOUR Last month, members of the Arcadia Association of REALTORS® went on a guided tour of Glendale’s Forest Lawn on Thursday, April 10, 2014. The tour featured Glendale’s artwork, museums and churches.
AIR Commercial Contract Forms Review
Last month, the AAR Commerical Committee held a complete review of AIR’s Commercial Real Estate Contract Forms at the DoubleTree Hotel in Monrovia, CA. The review was held Friday, April 11, 2014 with over 70 REALTORS® participating! The event was a huge success followed by a networking reception.
8
May 2014
Affiliate Corner
“Do-It-Yourself Estate Planning - Avoiding Common Pitfalls” By Romy Rahmanian, Esq., Law Office of Romy S. Rahmanian
Beware of falling into the do-it-yourself estate planning trap. Many people, in an effort to eliminate the need for proper estate planning, try to avoid probate by making lifetime gifts of their property or holding their property in joint tenancy with children or other family members. While this practice may provide a temporary solution to probate, the drawbacks may end up costing more in the long run.
No “stepped-up” basis in the property Finally, one of the biggest pitfalls of joint tenancy concerns the concept of “basis.” To illustrate, assume that after Ned’s death, Catelyn purchases a new house at a cost of $100,000. For income tax purposes, Catelyn’s “basis” is her cost ($100,000). Assume that, a decade later, that same house is now worth $400,000. Should Catelyn decide to sell the house, for income tax purposes she would have to pay capital gains tax on the $300,000 gain (i.e., $400,000 sales price less $100,000 basis = $300,000 gain).
What is Joint Tenancy? Joint tenancy is a form of holding title to property where two or more individuals co- own an asset with a “right of survivorship.” This means that, when one joint tenant dies, the surviving owners automatically get the deceased owner’s share of the joint tenancy property, without probate. For example, if Ned and Catelyn hold title to a house as joint tenants and Ned dies, Catelyn automatically, by operation of law, becomes 100% owner of the house. All Catelyn would need to do in order to assume full ownership of the house is record a document called an “Affidavit of Death of Joint Tenant” with the county recorder’s office.
Now, assume that immediately before the house is sold, Catelyn dies but, in her will, leaves the house to her daughter, Sansa. Under the IRS rules, Sansa’s basis in the house would be “stepped-up” to $400,000 (the value of the house on the date of Catelyn’s death). By contrast, assume Catelyn made Sansa a joint tenant or outright gave Sansa the property prior to her death. What would be Sansa’s basis in the property after Catelyn died? The answer is that Sansa would receive Catelyn’s basis of $100,000 and would not receive a “stepped-up basis” upon Catelyn’s death. When an owner gifts property to others during the owner’s lifetime, the donees receive a “carry-over” basis (i.e., they receive the same basis as the donor).
What you may not know about holding property in Joint Tenancy While the “right of survivorship” aspect of joint tenancy does give you the ability to avoid the time and expense of probate, this comes with some major drawbacks. First, by making someone else a joint tenant of your property, you give up half ownership of the property. The new owner could sell or mortgage his or her share—or lose it to creditors or in a divorce. Second, joint tenants lose the ability to leave their portion of the property to their heirs via a will or trust because, a deceased joint tenant’s portion of property passes by operation of law to the surviving joint tenants, regardless of what the deceased joint tenant put in their will. Third, if two people are joint tenants in property, they may avoid probate at the first death, but upon the death of the surviving joint tenant, the entire estate will have to pass through probate unless the surviving joint tenant has a trust, or puts another joint tenant on title.
If, instead, Catelyn had left the house to Sansa by way of a will, or better yet, a living trust, Sansa would have received a full “stepped-up” basis upon her death. Then, capital gains taxes would be minimized depending when Sansa sells the house. If Catelyn had left the property to Sansa utilizing a living trust, both probate fees and capital gains tax could have been avoided. For these reasons, when planning for death or incapacity, it is important to have a qualified professional review your particular circumstance and design an estate plan which is customized to your specific needs. The Law Office of Romy S. Rahmanian is dedicated to providing high quality legal services in the areas of Estate Planning, Trust Administration, Probate, Business law and Commercial transactions. For more information, contact Romy at: (626) 8698787 or romy@rahmanianlaw.com.
Arcadia REALTOR® Magazine
9
through the lens
A Look at What’s Happening Around the AAR
s Holden
Asm. Chri h it w t n e v E e v ti la Legis
New Mem
ber Welco
me Recep
“How to Make More Money With Foreign Investors” with Paul Owens, Consul & Trade Commissioner, Consulate General of Canada
10
May 2014
tion
Appy Hour
The Tech / YPN Committee has been hosting “Appy Hour” on the third Thursday of every month from 6 p.m. to 8 p.m. As a FREE opportunity to network, socialize, and learn about effective and prized apps, the Tech / YPN Committee cordially invites all to come join the events! We meet at a different location every month and vote for the best app for its purpose at the “Appy Hour”. Free appetizers will be served. Drinks will be accommodated via a no host bar.
April 24th was a huge success featuring Charity Karaoke!
Arcadia REALTOR® Magazine
11
Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006
Dedicated to Providing High Quality Legal Services ®
• Estate Planning • Trust Administration • Probate • Business Law • Commercial Transactions • Corporation, LLC & Partnership Formations • Business Contracts
Call today for a free consultation
Romy S. Rahmanian, Attorney
(626) 869-8787 33 East Huntington Drive • Arcadia, CA 91006 romy@rahmanianlaw.com • www.RahmanianLaw.com
12
C. Anthony Phillips, CPA President
We Provide A Complete Service To Successfully Accomplish Tax Deferred Exchanges Pre-Exchange Tax Planning Accommodation of Tax Deferred Exchange Post Exchange Tax Planning
Call for your free Exchange Tax Analysis 909 East Green Street, Pasadena CA 91106-2930
Phone: (800) 743-1031 Fax: (626) 796-8222
www.DownstreamExchange.com