Volume 1 issue 2

2014 Leadership of the DAOR

Downey Association of REALTORS 12073 Paramount Blvd - Downey, CA 90242 562 861-0915 - Fax 562 923-9995

Executive Directors: Mireya Ruiz, President Jason Cierpiszewski, President-Elect Carrie Uva, Vice President Esther Lee, Treasurer Jeanette Baumann, Executive Vice President Directors: Mario Acevedo Michael Berdelis, Immediate Past President Maria Cibrian Sossi Gabriel Ericka Saenz Ruben Sarinana Vicki Spearman Miriam Villanueva

www.DAOR.com Monday - Friday 9am-5pm Saturday 9am-1pm 24/7 text support :

Text DAOR to 55469 Volume 1– Issue 2

T[\l_ of Cont_nts:

DAOR Chaplain: Ruben Sarinana CAR State Directors: Mireya Ruiz, Carrie Uva & Jason Cierpiszewski

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D@OR’s N_w 24/7 Fr__ T_xting H_lp-Lin_

Affiliates In Action Committee Tom Ramirez, Chairperson

2 - Un^_rst[n^ing Hom_st_[^ & Ch[ng_s to th_ Top Pro^u]_r @w[r^s

Awards Committee Larry Kooiman, Chairperson Budget & Finance Committee Nubia Aguirre, Chairperson DAOR YPN Laura Dominguez, Chairperson

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Grievance Committee Dan Nevarez, Chairperson

C@R St[t_ Dir_]tor’s L_gisl[tiv_ R_port

LCRC Trustees John Lacey, Chairperson

7 - “Di^ you Know” from D@OR’s M_m\_rs B_n_fits Sp_]i[list “Insur[n]_s”

Local Government Relations Sandra Carnett, Chairperson Membership/MLS-Technology Committee Remoun Said, Chairperson

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Nominating Committee Russell Skersick, Chairperson Professional Standards Committee Bev Baumann, Chairperson

L_g[l R[mifi][tions of [ Po]k_t Listing

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RE@LTOR Community W__k Ev_nts & D@OR’s Fr__ Housing @ffor^[\ility Symposium Lun]h_on

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D@OR’s S]hol[rship Winn_rs

REALTOR Community Relations Committee Rowena Dominguez Scholarship Committee Diane Sanchez

10 - C@R & N@R’s @nnu[l Conv_ntion

DAOR Staff Jeanette Baumann, EVP - evp@DAOR.com Customer Care Department Nelly Palma, mls@DAOR.com CeCe Robles, education@DAOR.com Hilda Inzunza, cs@DAOR.com Membership Department Julie Sartor, julies@DAOR.com Fausto Navarro, communications@DAOR.com Susie Gonzales, cs@DAOR.com

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D@OR’s Stor_ it_m/s[l_ of th_ month

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Pl_[s_ fin^ on p[g_ 11 links to “join” D@OR’s F[]_\ook, Twitt_r, Instigr[m, You Tu\_, [n^ Vi_w 2014 Pi]tur_s on Pi][sso.

Understanding Homestead

By Edgar Saenz, Esq. A homestead is the family residence, which in most states is exempt to a certain extent from forced sale for collection of debt. In California, there are at least three kinds of homestead exemption: (1.) Declared homestead (2.) Automatic homestead exemption (3.) Property tax homestead exemption

Declared Homestead

The first way in which California law protects homeowners is the recorded, declared homestead. A homestead declaration is a written statement, made under penalty of perjury that claims a particular “dwelling” (for example, a house, or even a boat) as the owner’s principal place of residence, in other words, the owner’s home.

The declared homestead exemption can apply to both voluntary and involuntary sales.

When a homestead declaration is (1) signed by a homeowner, (2) notarized, and (3) recorded, it helps to protect the home against loss to creditors. “Recorded” means that the original signed homestead declaration is filed in the recorder’s office for the county in which the home is located. A properly recorded homestead declaration protects the home (and the land) from many legal enforcement measures. For example, if a homeowner files for bankruptcy, the homestead declaration should allow he owner to retain the home or some of the equity in the property.

Automatic Homestead Exemption

The second type of homestead is the automatic exemption. The homeowner doesn’t have to do anything. He or she has this protection by right. This automatic exemption is substantially similar to the declaration of homestead. The amounts of the exemption are the same under either and are: Single person $75,000 Married Couple $100,000 Single person with dependents $100,000 Over 65 (married or not) $175,000 If the homeowner has enough equity to satisfy encumbrances, he keeps the statutorily exempt amount. Creditors reap any surplus up to the amount of their judgment lien. To qualify, the owner must have continuously resided in the home from the time that the creditor’s judgment lien attached until a court determination that the exemption applies.

The exemption is not cumulative with a declared homestead. In other words, even if the homeowner recorded a homestead declaration, she only gets the $75,000 exemption if single (or $100,000 if married, $175,000 if over 65).

A properly recorded homestead Declaration protects the home (and the land) from many legal enforcement measures.

Because of the existence of the automatic exemption, declared homesteads these days are rare. Still, a client may have need for the declared homestead where he or he owns

More than one house, both of which might be viewed as the principal place of residence, for instance, property in Venice and Palm Springs.

Neither form of homestead applies to secured creditors. Thus, lenders whose claims are secured by a prior mortgage or deed of trust on the property or holder of a mechanic’s lien on the property may proceed to collection without interference from the homestead serves as a shield to unsecured third party creditors.

Property Tax Homestead Exemption The third kind of homestead is a homeowner’s exemption of $7,000 from the assessed value of the home. The homeowner obtains this relief by completing a form BOE-266. One should compete and return this form to the County Assessor. On average, it’ll save the homeowner about $90 a year in property taxes- better than a stick in the eye, as the say.

Summary: Since the automatic homestead exemption provides virtually the same protections as the declaration of homestead, the latter is infrequently seen. Moreover, given the high value of California real estate and the modest homestead protection amounts, clients who are concerned about asset protection are advised to consider other creditor protection techniques such as trusts and limited liability companies.

Edgar Saenz is a Los Angeles estate planning, probate, and asset protection attorney and graduate of Stanford Law School. He is a member of numerous bar associations and Trust and Estates sections. Telephone: 310-417-9900 - Edgar@EdgarSaenz.com

UPDATE ON THE TOP PRODUCER AWARDS: Starting immediately: To help you and your office staff, DAOR will start producing the quarterly production nomination reports. Once the reports are done, DAOR will send it to the agents for verification, and confirmation of participation. *The Quarterly Award will be based on 6-8 sides (Bronze); 9-11 sides (Silver); 12+ (Gold). *The Annual Awards will be an accumulation of all four quarter top producer reports. DAOR will announce the top ten listing production members, and top ten selling production members annually at the February Luncheon every year. (production is based on closed sides) Page 2

Legal Ramifications of a Pocket Listing DAOR Broker Meeting July 31st With Edward Zorn, Assoc Counsel The Giardinelli Law Group, APC Legal definition of a pocket listing = Though not a legally defined term, a “pocket” or off-MLS listing generally refers to a listing agreement that an agent has obtained but does not place on the MLS. “Hidden in the pocket of the listing agent for purposes of this discussion”: written listing agreement that would otherwise be eligible for/ required to go in the MLS. Is it Legal? Yes, a pocket listing can be legal, BUT BEWARE….the practice raises legal, ethical and practical red flags.

What does everyone need to consider?

1) The MLS Rules.

Rules 7.8 Mandatory submission is required within two business days after listing is signed, or date of listing starts. (if) a) one to four residential units and vacant lots. b) located in the MLS service area, or c) exempted listing (rule 7.9). Seller must be advised of broad MLS marketing benefits, and seller refuses to submit to MLS. 7.9 Exempted Listings. You must have a CAR “SELM”, or similar seller-signed MLS optout form filed with the DAOR within 2 business days.

And most importantly, you must be able to prove that you informed the seller of the marketing benefits of the MLS - they must know 1) other agents will not see listing 2) no downloads of their home to other websites 3) everyone is unaware of terms of sale, and 4) you will receive a lower number of offers. * If you are ever in the situation of defending yourself (in court) you will be asked … What was t he seller’s benefit of having the listing excluded from the MLS for ANY period of time? - Think about it, if it is not in the MLS so your brokerage can double end, and make more money, you will loose the civil case.

2) The Code of Ethics. Realtors® may be taken to the courts of Professional Standards for violation of Article 1 and Article 3.

Article 1– Similar to the fiduciary duty under California law… was the decision to withhold from the MLS driven solely by the Realtor® or the Seller?

Standard of Practice 1-12 also specifically requires a Realtor® to discuss with the seller his/her “ company policies regarding cooperation and the amount(s) of any compensation that will be of fered…” If you take a true pocket listing and will not be sharing compensation with outside agents, have you discussed it and explained the ramification to your seller??

Article 3 - Standards of Practice 3-10 states that the “duty to cooperate relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/landlords.”

3) Legal Obligations and Potential Liability. Per California law, real estate licensees owe a fiduciary duty to their clients.

- Listing agent has a “duty of utmost care, integrity, honesty and loyalty” when dealing with the seller and a duty of “honest and fair dealing and good faith with the seller” (Ca;. Civ. Code 2079.16).

- An “obligation of undivided service and loyalty’ of an agent to his/her client (Rattray v. Scudder (1946) 28 Cal. 2d. 214).

- A complete duty of the highest good faith in his/ her dealing with the client and cannot use the position to his/her own advantage (Thomas v. Snyder (1930) 114 Cal. App. 397, Ward vs Taggart (1959) 51 Cal.2d 736).

If the arrangement to pocket a listing is made for the benefit of the listing agent/brokerage, and is not in the seller’s best interest you are violating CA law by constituting a breach of fiduciary duty.

How do YOU avoid breaching your fiduciary duty? *Make sure that a seller understands in a meaningful way the pros and cons of doing a pocket listing, including any options available within the MLS to address their concerns (such as declining Internet display if apprehensive about privacy or nonnon-placement of a lockbox if concerned about security). *After full disclosure, make sure seller voluntarily decides to keep the listing off the MLS.

“Have you Explained to your sellers the MLS Benefits that will be Waived?�

"Agent cooperation was put in place to promote longevity in our industry, let us continue to practice it in order to insure it."

2014 President, Mireya Ruiz

DAOR State Directors More to Report on by President, Mireya Ruiz

Laura Dominguez, DAOR YPN Chair, Jason Cierpiszewski, Pres-Elect; Mireya Ruiz, & Carrie Uva at CAR’s 2014 Legislative Day in Sacramento, CA.

Over 3200 REALTORS Marched to the State Capital to speak with the Legislators to ask for their support on the following three bills.

SB 1439 Leno (D) – Ellis Act Restrictions – OPPOSE This bill empowers local government to restrict the ability of landlords to take rental units off the market unless every owner of that rental property has owned the property for at least five consecutive years. This effectively forces landlords to remain in the rental housing business making it impossible for these owners and their families to occupy their own property.

AB 2416 Stone (D) – Wage Liens on Property – OPPOSE This bill seeks to expand the mechanics lien concept so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. The bill creates a super-lien for the first $50,000 of the claim. The super-lien would be paid before any other lien except tax and government liens, purchase money mortgage and mechanics liens. Assemblywoman Bonnie Lowenthal (D) carried a similar bill last year and the Realtors were able to defeat it.

AB 2039 Muratsuchi (D) – Auction Company Liability – SUPPORT This bill prevents real estate auction companies from shifting liability for their mistakes to sellers and listing agents when the lender sends short sale properties to auction to validate their value.

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Home Ownership Housing CAR favors SB 1026(VIDAK), which would require a homeowners association in a CID, prior to initiating a foreclosure proceeding for delinquent assessments, to post a copy of the notice for delinquent assessments on the unit, mail via first class mail copies of the notice to all known addresses of the owner(s) of the unit, and post the notice in a newspaper of general circulation once a week for the three consecutive weeks. As of May 2, 2014, this has passed on the floor and is moving to Appropriations.

AB 1513 (Fox) Regulations of Squatters - AB 1513 seeks to provide a definitive remedy for owners of residences in California that have become taken over by squatters. Unlawful Detainer laws are not specifically designed to provide law enforcement officials the tools they need to assist owners of residential real property in their efforts to remove, or prevent the occupancy, by squatters on vacant properties. CAR is proposing enactment of a new statute that will provide local law enforcement officials the specific tools necessary for them to require the vacating of unlawfully occupied residential properties. CAR is sponsoring the bill and as of April 29, 2014 it has passed on the floor and referred to Appropriations. **FHA has also announced that we should expect good news, towards the end of the year, pertaining to the process of the Condominium HUD approval process.

Business and Technology Final RPA 2014 revisions coming August 2014 and training will commence as well. Zip Forms Plus will be your only source come June 2, 2014.

Paperless Pro Certification (PPC) will be available through the CAR website. Upon the completion of the PPC you will know why and how to establish a successful paperless workflow for your real estate business. To earn the PPC you must successfully complete 3 courses (2 mandatory 1 elective) plus attend 2 free webinars.

Courses and webinars may be taken in any order towards earning the PPC.

Attend Legislative Day An Absent Senator The Status of Ron Calderon and the 30th State Senate District This year the California Legislature has been rocked by scandal and indictments. In 2014, there have been three California Senators that have been involved in alleged criminal and immoral activity that have threatened the integrity of the California political system. Leland Yee, Rod Right and Ron Calderon are the three California politicians under investigation for varying degrees of alleged suspicious activity.

Ron Calderon began to represent the citizens of the 30th Senate District when he was elected to the Senate in 2006 and was re-elected in 2010. Senator Ron Calderon sat on numerous committees including: the Chairman of the Elections, Reapportionment, and Constitutional Amendments Committee, Chairman of the Select Committee on International Business Trade, Member of the Appropriations and Energy, Utilities and Communications Committee, and was a member of the California Film Commission.

Senator Calderon’s legal troubles started in 2013 when he was under investigation regarding alleged criminal activity. On February 24, 2014, Ron Calderon surrendered to federal authorities pleading not guilty to 24 charges relating to wire fraud, bribery, money laundering and falsification of tax returns. On March 2, 2014, Senator Calderon officially took a paid leave of absence that is expected to last until the end of the 2014 legislative session.

As a result of Senator Calderon’s leave of absence, the citizens that reside in the 30th Senate district currently do not have a Senator in the California Legislature to represent them in the California Senate. Also as a result of Senator Calderon’s leave of absence, Senator Calderon cannot vote or interact with his legislative staff, but constituents can contact his office staff.

If you need assistance from your California Senator, you may contact the offices of the 30th Senate district. There are office staff who may assist constituents with their individual questions or case. The 30th Senate district office contact information is (323) 890-2790, and their Capitol office contact information is (916) 651-4030.

End of 2014 California Legislative Session The end of the 2013-2014 Legislative Session is almost upon us. August 31, 2014, is the last day the California Assembly and the California Senate may pass bills for this legislative session. If you want your voice to be heard in the Legislature, now is the time to contact your representative. There are still several bills in each house that have not come to a vote as of yet that need your attention. These bills sponsored by C.A.R. are AB2018, AB2039, AB2540, AB2104, AB2541, SB992, and SJR19. Do not let this legislative year pass you by without letting your voice be heard in the Capitol.

As the Legislative Session is coming to a close, I was able to meet with Capitol staff and legislators to discuss the important issues impacting our community.

They communicated important information regarding critical issues that our community and REALTORS hold dear. I will continue to visit the Capitol as often as possible to address our Associations goals. http://daor.com/pdf/ GovAffairs/ DowneyBOD_Report_Nov -Dec_2011.pdf

Jonathan Fonti, GAD

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REALTOR COMMUNITY WEEK September 8-12, 2014 Feel Free To Participate!!

The REALTOR COMMUNITY RELATIONS Committee put together a week full of events, that REALTORS can participate in to show their “REALTOR® COMMUNITY SPIRIT” Some events require planning, please choose a team leader in your office, to head up the events in your office; let DAOR know who your leader is. Email you leader to evp@DAOR.com.

Monday - SEACCA Drive. Office Team Leader in charge of collecting a $5 donation from agents in the office, from now until Sept 3rd.

Tuesday - City Clean-Up. Sign up to “spruce-up” an area of Downey, Norwalk, or Pico Rivera.

Wednesday - Housing Affordability Symposium Luncheon. This luncheon will be free for DAOR REALTOR Members; but reservations are a must.

Thursday - September 11th … bring lunch to the Downey Police Department. Team Leaders may meet up there for a photo.

Friday - Food Drive to PTA Helps. Each office collect canned, non-perishable food, from now until Sept 12th Pictures from 2013 REALTOR Community Week

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DAOR Award two Graduating Seniors with a $1,000 Business Scholarship The DAOR Scholarship Committee read and considered several Scholarship Applications from Downey & Warren High Schools. Unanimously they choose Catherine Sepulveda from DHS, and Jessica Gadia from WHS. Catherine graduates from Downey High School with a 3.92 GPA, her dream is to major in Business Management from Seattle University, where class sizes are small and intimate, and students may have meaningful discussions with their teachers.

Catherine is a Downey High Viking Link Crew Leader, she ran on DHS Cross Country Team. and she volunteers for the Sandwich Program for OLPH Church.

Jessica is graduating with a 3.96 grade point average and would like to attend either UC Santa Barbara, San Diego State or UC. Jessica will be the first in her family to go to college and wishes to major in Accounting - Business. Jessica is on the Warren Marching Band, and Jazz Band, and volunteers at PIH in Downey.

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DAOR Scholarship Chairperson, Diane Sanchez conducted the ceremony. Several of you have asked her and the DAOR staff for the message she quoted. Here is Diane’s message that she quoted from Marianne Williamson…….

"Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God within us. It is not just in some; it is in everyone. And, as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our fear, our presence automatically liberates others.”

2014 DAOR Scholarship Committee: Jason Cierpiszewski, Miriam Villanueva, Irma Salgado, Maribel Chavez, Maria Lilley - Rowena Dominguez, Maria Menjivar, Diane Sanchez. Missing from photo: Ericka Saenz, & Ernie Sifuentes

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PROTECT YOUR FACE At the Downey ASSOCIATION OF REALTORS we want our REALTORS to be safe from UV Rays while showing properties, especially during the hot summer months of July & August.

Luckily here at the DAOR store we have REALTOR Pride visors and hats. These REALTOR logo hats and visors are sure to be seen and when they see you wearing only, they'll know you are a REALTOR; you might come across your next customer!

[Hats $11 / Visors $11.50 plus tax ]

Hilda cs@DAOR.com 562 861-0915

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