OC REALTOR®: July/August 2019

ARE YOU ASKING THE RIGHT QUESTIONS?

FIND FREE MATERIALS FOR YOUR FARM

RAW GROUP HELPS MEMBERS FACE CHALLENGES

THE HOTTEST SEASON IN OC REAL ESTATE IS TICKING AWAY

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Become better acquainted with the five new members of the Orange County REALTORS® Board of Directors.

Discover what they view as is the greatest challenges REALTORS® face today—and how they propose to help you navigate those sometimes-stormy seas. on pages 26-29

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President’s Message 08 Are You Prospecting and Asking the Right Questions?

Matt Clements lists eight questions you might ask of buyers and sellers while prospecting.

Features 18 O C REALTORS® Event: OCAR Cares Golf Tournament

A report of contest winners and fund-raising results with a special thank you to event sponsors.

An Election Brings a New Wave of Directors Five new members of the Orange County REALTORS® Board of Directors stand ready to help you catch that next good wave and navigate those sometimes-stormy seas.

Cover Story ecome better acquainted with the five new OC REALTORS® B Directors for 2020–2022.

Meets monthly and offers REALTOR® and Affiliate members who may be hurting a new kind of help and hope.

34 The Orange County Housing Update

State Update 10 A Look Back at C.A.R.’s Legislative Day and Forward to Reimagine!

Jared Martin recounts highlights of Legislative Day and thanks C.A.R. members for making it a success.

Steven Thomas points out that the clock is ticking on the Summer Market opportunity that will soon be gone.

36 Summer Safety: Drowning Is a Preventable Tragedy

Leadership Academy 20 Nineteen Graduate from Second Annual Academy

Deb Shrider lists the names of the nineteen cadets and lauds the accomplishments that led to their June 11 graduation.

Sherri Butterfield encourages readers to limit unauthorized pool access, teach children to swim, and watch the water!

38 5 Things Consumers Need to Know About HOAs

Member Benefits 32 Free Farming Materials for All Seasons

Marissa Hughes describes discount coupons, door hangers, and a Resource Guide that will help you make a name for yourself in the neighborhood you farm.

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MLS Forum

Topics include photography licensing, marketing to expired listings, CRMLS compliance, and the California Consumer Protection Act (CCPA).

30 Member Services: The RAW Group

26 A New Wave of Directors

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22 OC REALTORS® Committees:

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Scott Clements reminds consumers that Homeowners’ Associations are self-governed, have assets and liabilities, and live by the rules.

40 O C REALTORS® Committees: Risk Management Forum

Topics include sober living homes, copyright infringement, do-not-call rules, new forms, and procuring cause.

42 G adgetry: Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener

Albert Ornelas says that, for safety reasons, California law now requires that garage door openers be equipped with a battery backup.

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CONTENTS

ORANGE COUNTY

® REALTOR MAGAZINE

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25552 La Paz Road Laguna Hills, CA 92653

10540 Talbert Avenue, Ste. 225 West Fountain Valley, CA 92708

949.586.6800

714.375.9313

www.ocar.org 2019 OFFICERS Matt Clements President Danielle Corliss President-Elect Lisa Schulz Treasurer Tammy Newland-Shishido Immediate Past President Dave Stefanides Chief Executive Officer

2019 BOARD OF DIRECTORS Jost Atwood Joyce Endo Dorinda Francois Michele Harrington Bob Hartman Tim Hayden Julie Hile Spencer Hoo Jeffrey Jackson Debra Krumboltz

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Departments 12

Names in the News

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Education Central: Upcoming Classes by Track

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Affiliates in Action: New REALTOR® Orientations

45 Mentions 46 Twelve-Month Payment Plan—Our Most Affordable Dues Payment Option

Liz Lewis Gary Ludwig Charleen Nagata-Newhouse Randy Rector Lacy Robertson Adam Rodell Aaron Rosen Scott White Bob Wolff Eric Wu

MAGAZINE STAFF Sabrina Blair

Breanna Reed

Director of Communications sabrina@ocar.org

Accounting Assistant breanna@ocar.org

Sherri Butterfield

Albert Ornelas

Communications Specialist sherri@ocar.org

Multimedia Specialist albert@ocar.org

Online Magazine

Love the Orange County REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocar.org/magazine.

Mission Statement

The mission of the Orange County REALTORS® is to promote the REALTOR® Code of Ethics; to provide education, services, and resources to our members; and to advocate the protection of real property rights.

Notice to All Members

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On the Cover Featured on the cover is a photograph of the five new Orange County REALTOR® Directors for 2020–2022.

They are (from left to right), Lori Namazi, Chip McAllister, Joyce Endo, Scott White, and Sherrie LeVan. Cover photo by Albert Ornelas for Orange County REALTORS®

Follow us on social media facebook.com/theocrealtors twitter.com/the_ocrealtors

instagram.com/theocrealtors snapchat.com/add/ocrealtors

It is the long-established policy of this Association, the California Association of REALTORS®, and the National Association of REALTORS® to adhere to both the letter and spirit of the federal and state antitrust laws. For their own protection, members should be aware of the antitrust laws as they affect their specific business activities. Any illegal activity under the state and federal antitrust laws is not in compliance with Association policy, nor is it in the interests of the Association or its members. Participation in Association activities must occur only in harmony with these very important laws. Federal law prohibits discrimination based on race, color, sex, religion, or national origin in connection with the sale or rental of residential real estate, in advertising the sale or rental of housing, in the financing of housing, and the provision of real estate brokerage services. The Orange County REALTOR® editor reserves the right to review and edit all submissions.

Orange County REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Orange County REALTORS®. Orange County REALTORS® does not necessarily endorse the companies, products, or services advertised in this magazine unless specifically stated.

The Orange County REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 11, Issue 4, is published by the Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653. Periodicals postage paid at Laguna Beach, CA, and additional mailing offices. POSTMASTER: Send address changes to Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653-5127. Annual membership dues include $3.13 for a one-year (6 issues) subscription to the Orange County REALTOR® magazine. The Orange County REALTOR® magazine cannot be responsible for unsolicited materials.

Publisher: Orange County REALTORS® Printer: The Monaco Group

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PRESIDENT’S MESSAGE

Are You Prospecting and Asking the Right Questions?

It’s July. We are more than halfway through the year.

Are you on target to reach your sales and income goals?

By Matt Clements 2019 PRESIDENT, ORANGE COUNTY REALTORS®

I have a two-year-old. He’s the best negotiator I’ve ever met.

I’m a sucker when he asks for anything. His assumptive language, his genuine smile, his skill of asking specifically for the business, and oh, that sweet, sweet charm!

“We’ve created a culture of family and sharing. That’s what we do. We help each other become better.”

Noah makes it nearly impossible to say no to his prospecting, even for ice cream pops!

Here we are in July. It’s that time of year. Are you clear on your why? Have you earned 60 percent of your annual income for 2019? You likely have.

I’m asking you: Are you prospecting and asking the right questions?

For buyers: n How soon do you need to move in? n Are you preapproved for a loan or would you like a referral? n Do you have a home you need to sell first, in order to buy? n What are you specifically looking for—in a REALTOR® —like me?

For sellers: n If we list and sell your home, where are you moving to? n How soon would you like to be there? n Do you know your home’s value today? n Is there any mortgage information that I should be aware of?

Or do you attend the Young Professionals Network (YPN) events and ask your colleagues these questions? They will tell you what they do!

We’ve created a culture of family and sharing. That’s what we do. We help each other become better.

Have you hit your mid-year goals yet? Do you need to revisit your vision statement for the year?

What is your why and why do you work?

Answer these key questions and you’ll be well on the way to your best year ever!

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Photo: www.istockphoto.com/Projects3d

These are great leading questions. You can learn these and other similar questions by attending a class, one of more than four hundred classes that Orange County REALTORS® is offering this year.

STATE UPDATE

A Look Back at

C.A.R.’s Legislative Day and Forward to REimagine!

Nearly 2,500 REALTORS® were on hand to hear Governor Gavin Newsom talk about California’s housing shortage and term it a “crisis Moment.”

C.A.R.’s Legislative Day.

Thank you to all of you who attended C.A.R.’s Legislative Day in Sacramento on May 1. Your attendance made it a great success!

Nearly 2,500 of you turned out to hear Governor Gavin Newsom address us in the morning. Following this year’s theme, “Homeownership Matters,” Newsom spoke about the state’s housing shortage, calling it a “crisis moment.” With California ranking 49 out of 50 states in housing units per capita, he noted that the California dream is in legitimate peril and that we need to do more to address housing demand.

Newsom vowed to build 300,000 to 400,000 new housing units and continue efforts to work on affordability, healthcare, and education. He also thanked C.A.R. members for their passion and efforts. Following the governor’s address, we headed over to the Capitol to discuss with our state legislators the issues of importance to the real estate industry.

“Are Californians Saying ‘YIMBY’ to ADUs?”

While we were in Sacramento, C.A.R.’s Center for California Real Estate (CCRE) held two events that focused on housing. The first, titled “Are Californians Saying ‘YIMBY’ to ADUs,” focused on accessory dwelling units (ADUs) and how increasing construction of ADUs can help address California’s housing

David Chiu, Kevin McCarty, Tyler Diep, and Jacqui Irwin joined C.A.R. Past President Robert Bailey, who moderated the panel, to discuss policy to reform the state’s approach to housing creation and affordability.

REimagine! It’s never too early

By Jared Martin C.A.R. PRESIDENT

shortage. Moderated by Los Angeles Times Reporter Liam Dillon, a panel of experts that spanned academia, policymakers, and developers discussed how the state can better empower homeowners to champion new development in their own backyard and leverage innovative housing solutions to help resolve the homelessness crisis.

“Building a California for All—Meeting the State’s Demand for Housing.”

The second event, titled “Building a California for All— Meeting the State’s Demand for Housing,” brought together key state legislators who shared unique perspectives on how California can address its historically low homeownership rate, housing affordability, and supply crisis. Assembly Members

to start thinking about REimagine!, C.A.R.’s annual conference, held September 24–26.

For the first time ever, we’re taking over Los Angeles. REimagine! will be in the heart of downtown at the Los Angeles Convention Center, with L.A. Live, the epicenter of entertainment, as our backyard for the week. REimagine! will be packed with content to help you transform your business, networking inside and outside the conference doors, and can’t-miss experiences. Registration opens June 19 at reimagine.car.org.

Rising Star Award. C.A.R. is looking for the next generation of leading agents who are making an impact in the industry to be Rising Star Award recipients.

The Rising Star Award is a C.A.R. initiative that recognizes up-andcoming agents in the brokerage community. The award highlights the elite, new talent entering the industry and helps boost their growing careers while promoting both the REALTOR® and the firm.

This column is based on and has been excerpted from the Monthly Message by C.A.R. President Jared Martin that was distributed via email on May 10, 2019. It is being reprinted here with permission.

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STATE UPDATE

Orange County REALTORS® President Matt Clements (center front) led a delegation of REALTORS® to Sacramento for C.A.R.’s 47th Annual Legislative Day on May 1.

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NAMES IN THE NEWS

Friends Gather in Support of Sheriff Don Barnes

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n May 7, friends gathered at Lido House in Newport Beach for a reception in support of Orange County Sheriff Don Barnes (third from the left in the back). Among those attending were (from left to right) Peter Wittingham, Orange County Supervisor Michelle Steel, Dirissy Doan, Danielle Corliss, Jim Corliss, Joyce Endo, Scott White, Orange County District Attorney Todd Spitzer, and Orange County Supervisor Don Wagner.

Mike Carroll Appointed to Irvine City Council On a 3-1 vote, members of the Irvine City Council selected Planning Commissioner Mike Carroll to fill the vacancy created when former Council Member Christina Shea succeeded to the office of mayor.

Shea became mayor when former Mayor Donald P. Wagner was elected to the Orange County Board of Supervisors in March. Wagner, in turn, ran for a seat on the Board of Supervisors to fill the vacancy created when former Supervisor Todd Spitzer was elected Orange County District Attorney in November.

ACC-OC Names Dennis Wilberg City Manager of the Year The Association of California Cities–Orange County (ACC-OC) named Mission Viejo City Manager Dennis Wilberg as its City Manager of the Year. The award recognizes a leader who stands out by encouraging collaboration among local governments, fostering new ideas, and tackling the County’s top issues with

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real solutions. One tribute to Wilberg read, “Dennis turns ideas into actions and engages citizens beyond the halls of government. As a result, he has grown the community, increased the quality of life, and given people a sense of belonging.”

Anna Dickinson Appointed to Cultural Heritage Commission In March, the San Juan Capistrano City Council approved the appointment of Anna Dickinson to that city’s Cultural Heritage Commission.

The Commission promotes awareness of and appreciation for the City’s cultural and historical significance and encourages sponsorship of community events promoting knowledge of the history, culture, and traditional folkways of the community.

NAMES IN THE NEWS

Nicole Suydam Selected as a Women of Coast 2019 Honoree Nicole Suydam has been selected as a Women of Coast 2019 Honoree for her accomplishments as a leader in the nonprofit sector. Nicole, who recently became president and CEO of Goodwill of Orange County, previously served as CEO of Second Harvest Food Bank and is often credited with having guided that organization toward fiscal sustainability.

This Names in the News column is intended to be primarily a place where Orange County REALTORS® and Affiliate members can share both personal and professional news—about births (of children or grandchildren), graduations, weddings, anniversaries, accomplishments, awards, and other milestones—with one another. If you have news to share, email it to OC REALTOR ® Writer and Editor Sherri Butterfield at Sherri@ocar.org.

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NAMES IN THE NEWS

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Tanya McElhaney Wins May C2EX Summer Challenge Pictured with OC REALTORS® CEO Dave Stefanides is Tanya McElhaney, winner of the May C2EX Summer Challenge and a $50 Amazon Gift Card.

The National Association of REALTORS® (NAR) created Commitment to Excellence (C2EX), an online program, to empower its members not only to grow but also to thrive in real estate. To date, more than 22,000 REALTORS® have participated in this program nationwide. To learn more, visit www.ocar.org/c2ex.

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OCAR Cares Foundation Honored as 2019 Nonprofit of the Year

The California Association of Nonprofits hosted California Nonprofits Day at the California State Capitol June 5. On that occasion, Assemblyman Bill Brough (center) honored the OCAR Cares Foundation as the 73rd Assembly District’s 2019 Nonprofit of the Year. Assemblyman Brough specifically cited the ways in which OCAR Cares has “enhanced the quality of life for local residents and instilled a strong sense of pride in the individuals with whom it is associated.”

Accepting the award on behalf of OC REALTORS® are CEO Dave Stefanides and 2019 President Matt Clements.

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NAMES IN THE NEWS

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OC REALTORS® Receives Taxpayer Watchdog Award

When the Orange County Taxpayers Association (OCTax) held its luncheon meeting on April 26, Irvine Mayor Pro Tem Anthony Kuo (on the right, representing Orange County Auditor-Controller Eric Woolery) honored OC REALTORS® with an Orange County Taxpayer Watchdog Award for having sponsored publication of the inaugural edition of the Annual Orange County Guide to Property Taxes. Accepting the award on behalf of OC REALTORS® are President Matt Clements and CEO Dave Stefanides.

In an introduction to this tax booklet, Stefanides wrote, “In sponsoring this report, OC REALTORS® . . . salutes all the homeowners whose property tax dollars pay for the services that make Orange County the very special place we have chosen to call home.”

Orange County REALTORS® Spend Time with Senator John Moorlach at Capitol Reception A traditional part of C.A.R.’s Legislative Day is the Capitol Reception, at which REALTORS® mix and mingle informally with their state Legislators. Taking advantage of this opportunity to spend time with state Senator John Moorlach (in the center at the back) are (from left to right) Paula Cosenza, Bob Hartman,

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Joyce Endo, Danielle Corliss, Jim Corliss, Sylvia Prata, Jamie Saltman, and Jean Tietgen.

OC REALTORS® Honors Jessica Siguenza and Nestor Herrera

With fanfare, flowers, and feather boas, Orange County REALTORS® honored its 2018 Volunteers of the Year, Jessica Siguenza and Nestor Herrera, at the Spirit of Volunteerism Awards Luncheon hosted on April 24 at the Disneyland Hotel by OneOC. Pictured are, from left to right in the back row, Travis Baron, Deb Shrider, Bhavna Kumar, Amir Shalchi, Nestor Herrera, and Michelle Phillips, and in the front row, Dirissy Doan, Jessica Siguenza, Cynthia Solis (who is Jessica’s mother), and Jessica Cascio.

NAMES IN THE NEWS

Family Members and Friends Celebrate the Life of San Clemente Mayor Steve Swartz

Family members and friends gathered on May 21 at the Bella Colina Golf Club for a Celebration of Life in honor of San Clemente Mayor Steve Swartz. Swartz died suddenly on May 8 at the age of seventy-one while on vacation with his wife Nickie and their son Kyle in Palm Desert. A United States Air Force veteran and long-time owner of a surety bond agency, Steve was elected to the San Clemente City Council in 2016 and became mayor of that city in November 2018. Dedicated to organizations that helped children, Steve raised money for both the Rotary’s Polio Plus Program and Autism Speaks.

HB June Marketing Meeting and Preview Raises More Than $2,500 for Youth Shelter

In June, the Huntington Beach Marketing Meeting and Preview initially raised $2,500 for the Huntington Beach Youth Shelter. Additional contributions from New American Funding and Adam Rodell brought the grand total of the group’s generous donation to $3,100!

Barbara Delgleize Receives 2019 Legacy Leadership Award

At the Annual Membership Meeting in March, Orange County REALTORS® President Matt Clements presented the 2019 Leadership Legacy Award to Barbara Delgleize. Barbara was instrumental in founding OCAR Cares when she was President of Orange County REALTORS® in 2005, served on the Huntington Beach Planning Commission from 2008 through 2012, was elected to the Huntington Beach City Council in 2014 and again in 2018, and served as mayor of that city in 2017. In nominating Barbara for this award, former OC REALTORS® President and Leadership Legacy Award recipient Rita Tayenaka wrote, “Barbara has been a leader in the Association as well as in the community for many years. She has come back year after year to share her knowledge and ideas with the Association, particularly with the Academy.”

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Photo: Orange County REALTORS® Albert Ornelas

EVENT

2019 OCAR Cares Golf Tournament

Raises $20,000 for the OCAR Cares Foundation Contest Winners

Closest to the Pin

Ladies, No. 17—Gina Bamberger, 11’ 1”

Men, No. 3—Gaetano Logrande, 7’1” Longest Drive

Ladies, No. 5—Erica Dose

Men, No. 10—Scott Gibson

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Scoring Results

Lowest Score, Mixed Team: 12 under 59 Team 1A: Nipper Larson Gina Bamberger Gary Bridge Lisa Bridge

Lowest Score, Men’s Team: 16 under 55 Team 14B: Rik Ringys Mike Horan John Wallace Tom Royds

Nineteen Graduate from Second Annual Orange County REALTORS® Leadership Academy The eight-month intensive training program that began in September 2018 culminated with a trip to Sacramento on May 1 for C.A.R.’s 47th Annual Legislative Day.

By Deb Shrider LEADERSHIP ACADEMY FACILITATOR

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une 11 was graduation day for the Orange County REALTORS® Second Annual Leadership Academy. On that day, the nineteen applicants who were accepted as program cadets in September 2018 received certificates indicating they had satisfactorily completed the intensive eight-month training program that culminated with a trip to Sacramento on May 1 for the 47th Annual California Association of REALTORS® Legislative Day. Tammy Newland-Shishido, 2018–19 academy chair and a former President of Orange County REALTORS®, said, “It is the goal of the academy to give participants the confidence to embrace the responsibility to serve as a leader in both the real estate industry and the community.”

She added, “Several of our alumni and participants have already stepped up to leadership roles not only within Orange County REALTORS® but also at the state level of other real estate industry associations, including the Women’s Council of REALTORS® (WCR), the Orange County Chapter of the National Association of Hispanic Real Estate Professionals (NAHREP), the Asian American Real Estate Association (AAREA), and the Young Professionals Network (YPN).”

“We are proud to acknowledge our Leadership Academy graduates,” said Matt Clements, 2019 President of Orange County REALTORS®. “They have completed the program and have made a legislative visit to the State Capitol. Some have already accepted leadership roles within our Association, and our Credentials Committee approved applications from six graduates to be candidates during the recent election for the Association’s 2020–2022 Board of Directors.”

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The Leadership Adademy graduates are n Bryan Ahn, JP Morgan Chase; n Duane Beisner, Coldwell Banker/Laguna Beach; n Patty Carpenter, Wells Fargo Private Mortgage Bank; n Melissa Chelius, Homes Sold Right; n Sara Cramer, Realty One Group Inc.; n Christina Fu, Christina Fu Broker; n Ava Huang, Keller Williams/Irvine; n Gerald Koller, International Home Realty; n Vi Mai, The Elizabeth Do Team Keller Williams Realty; n Kathy Manes-Smith, Compass/Uhrik Group; n Chip McAllister, Chip McAllister–McAllister Real Estate Group/Coldwell Banker; n Moe McGrath, Zutila Real Estate; n Rana Mohiuddin, Four Brothers Real Estate; n Lorette Murphree, SoCalDWELL; n Sarah Piazza, HomeSmart Evergreen Realty; n Joseph Pierce, Iron Key Escrow; n Jay Ramos-Co, Coldwell Banker/Mission Viejo; n Colleen Trujillo, Coast to Canyon Real Estate; and n Corvi Urling, loanDepot.

Orange County REALTORS® CEO Dave Stefanides said he is delighted that so many of the Academy graduates have already demonstrated their willingness to serve the real estate industry and their communities in a wide variety of leadership roles.

The 2019–20 Leadership Academy begins in September. For more information, visit www.ocar.org/leadership-academy or call 949-586-6800.

OC REALTORS® COMMITTEES

MLS Forum Features Industry News, a Compliance Report, and a Legal Update Panelists discussed licensing photographs for use on the MLS, marketing to expired listings, common MLS compliance violations, the new California Consumer Protection Act, the iBuyer Model, and pending antitrust litigation.

By Sherri Butterfield WRITER AND EDITOR

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n April 16, the Orange County REALTORS® Multiple Listing Service (MLS) Committee and MLS Committee Chair Mark Bennett hosted an MLS Forum. Among items on the agenda were MLS and Industry News, Photography Licensing, Marketing to Expired Listings, a CRMLS Compliance Report, and a C.A.R. Legal Update.

What follows are some of the ideas offered during that forum.

MLS and Industry News

n Art Carter, CRMLS Chief Executive Officer Data Shares and Reciprocal Links. Our vision is to provide real estate professionals in California with information regarding properties throughout the state. More than 96,000 real estate professionals affiliated with thirty-eight Associations and Boards of REALTORS® provide listings into our system. Right now, CRMLS gives you access to about 70 percent of the listings up and down the state through data shares and reciprocal links. You no longer need to belong to multiple systems. If they are in the data share, their data is on the Matrix system.

Products Available at No Additional Cost.

CRMLS makes available to you eighteen top-ofthe-line industry products at no additional cost beyond the fees you pay. One of these products is LionDesk, which allows you to assign leads and contacts to different team members. As a result of Matrix updates, you are now able to print listing notes. And a recent CRMLS App update lets you edit listings so that you can change the price, the private remarks, the public remarks, or the status.

The iBuyer Model. An iBuyer is a company that makes quick cash offers on real estate. The iBuyer form of business is growing rapidly in the South 22

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and West. Last year in Dallas alone, iBuyers were removing eighty properties a month from the marketplace. One venture capitalist believes that eventually all property will be sold to companies and purchased from companies.

Photography Licensing and Expired Listings

n Ed Zorn, CRMLS Vice President and General Counsel Photography Licensing. The person who takes a picture owns the picture and may license it for use on an MLS for a specified period. To ensure that your end-user license agreement complies with the CRMLS user agreement, use either the C.A.R Property Images Agreement (PIA) or the CRMLS Photograph User Agreement. (For more information, view Using Professional Photographs in the MLS: A Video Guide.)

Marketing to Expired Listings. CRMLS Rule 12.11 expressly forbids the use of MLS information other than to market property to bona fide prospective buyers or to support market evaluations or appraisals. You may not use MLS data to mine expired listings. Violations of this rule can result in a penalty up to $15,000. (For more information, read “When Farming Goes Too Far: Expired Listings and CRMLS Rule 12.11” by Ed Zorn, which appeared on pages 36–37 in the March/April issue of OC REALTOR®.)

CRMLS Compliance Report

n J eff Smetana, CRMLS Director of Data Compliance and Data Licensing n Megan Barber, CRMLS Compliance Manager We take an average of 2,933 reports a month.

This year, we have taken 524 reports for Orange County REALTORS®. The most common violations

Photo by Marion Butterfield

Pictured are (from left to right) Ed Zorn, Elizabeth Miller-Bougdanos, Mark Bennett, Art Carter, and Jeff Smetana.

are for branding (27 percent), inaccurate information (19 percent), no photo (16 percent), misuse of public remarks (9 percent), failure to input/exclude (7 percent), failure to correct (7 percent), and conditional compensation (6 percent).

C.A.R. Legal Update

n Elizabeth Miller-Bougdanes, C.A.R. Senior Legal Counsel, Corporate Legal Department California Real Estate Law Tune-Up. As the result of C.A.R.-sponsored legislation (that is, AB 1289 and AB 2884), effective January 1, 2019, the language of real estate law has been brought into conformity with common practice. For example, the “cooperating agent” is now termed the “buyer’s agent.”

FTC/DOJ Joint Workshop. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) held a joint workshop in Washington, D.C., on June 5, 2018. Under discussion were regulatory and industry factors affecting residential real estate competition. The chief consumer concern was that commission is too high and lacks transparency, especially on the buyer side. My takeaway from this workshop was that the consumer has broad access to

data. There is no reason to make the MLS a “public utility”—either government-run or governmentregulated.

Moehrl v. National Association of REALTORS®, et al. This is an antitrust class-action lawsuit filed in U.S. District Court in Illinois on March 6, 2019. The complaint asserts that NAR rules “create an anticompetitive environment” that is harmful to sellers.

There is a lot of money behind this lawsuit. It will result in complex and costly litigation, and it’s going to take a long time to decide.

California Consumer Protection Act (CCPA). The CCPA, which goes into effect on January 1, 2020, allows broad regulation of when and how businesses store and handle “personal information” about California residents and what rights a consumer has regarding this information. One component of the law allows consumers to request that their personal information be deleted from any data base.

DRE Regulations. Watch for new language about advertising on electronic media, published on July 1, 2019. n OC REALTOR®

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COVER STORY

The ballots have been cast and counted, and five REALTORS® have been elected to serve as members of the 2020–2022 Orange County REALTORS® Board of Directors.

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COVER STORY

By Sherri Butterfield WRITER AND EDITOR

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eginning on Tuesday, May 7, and concluding on Tuesday, May 21, REALTOR® members of Orange County REALTORS® voted to choose five from among ten candidates to fill three-year positions on the 2020–2022 OC REALTORS® Board of Directors.

The ten candidates (in alphabetical order by last name) were Cassandra Amos, Olesya Drozdova, Joyce Endo, Christina Fu, Spencer Hoo, Felix Hung, Sherrie LeVan, Chip McAllister, Lori Namazi, and Scott White. Their photos, statements, and bullet-point résumés appeared on pages 19–21 in the May/June issue of OC REALTOR®.

The election results produced a new wave of Directors:

n Joyce Endo n Sherrie LeVan n Chip McAllister n Lori Namazi n Scott White

Joyce Endo

Photo: Orange County REALTORS® Albert Ornelas

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oyce Endo’s first career was as a registered nurse and unit manager, responsible for managing budgets and mentoring team members regarding patient care. Her introduction to real estate was as a buyer three times and then as a seller four times in fewer than five years. Joyce learned from these experiences that she had a knack for negotiating and pricing—and realized that the critical thinking, communication, and coordination skills she had developed as a nurse might be applicable to real estate!

First licensed as a real estate agent in 2005, Joyce joined Orange County REALTORS® in that same year and has since served on several committees, including Local Government Relations North, Finance, and Political Affairs and Elections. In addition, she is a member of the Orange County Chapter of the Asian Real Estate Association of America (AREAA) and was president of the Women’s Council of REALTORS® Coastal-West Orange County Network in 2017.

Three years ago, Joyce sought a position on the Orange County REALTORS® Board of Directors because she believed that her skills in strategic planning and implementation, public relations, communications, marketing, and event planning would make her an asset to the Association. She believes that “professional standards of ethics and practice are crucial” and that, through education, REALTORS® can become equipped with the knowledge they need to better serve their clients—and one another.

Joyce says that “the greatest challenge REALTORS® face today is maintaining the accuracy and reliability of shared information” and that “the Association must make available topnotch education and cutting-edge tools to help its members stay ahead of the curve in a technology-based industry so that they continue to be the most valuable advocates for homeownership and the most valuable resource for clients who are seeking to become homeowners.”

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COVER STORY

Sherrie LeVan

S

herrie LeVan chose real estate as a career because she wanted to manage her time so that she could both earn an income and be a good mom. First licensed in 1997, she has been a member of Orange County REALTORS® for twenty-two years. She is a graduate of the OC REALTORS® Leadership Academy and for three years served as either chair or co-chair of the Independent Broker Alliance (IBA).

Passionate about independent brokers, Sherrie says that she sought a position on the Board of Directors in part because she wanted to strengthen support for the IBA. “And,” she adds, “the REALTOR® profession could use a positive boost.” Sherrie would like to see members of the general public “view our profession as their necessary advocate in purchasing or selling a home.”

Sherrie says that the greatest challenge REALTORS® face today is educating the public to believe that having both buyer’s agents and seller’s agents working together will provide them an equitable transaction with less risk. She explains that the current trend among buyers is to want to work only with listing agents because of a mistaken belief that the price of the home they want to purchase will be reduced if the seller pays only one commission instead of two.

“We as a profession do not do a great job of explaining what we do and why representation is so necessary in our litigious world,” declares Sherrie. She wants OC REALTORS® to work with both C.A.R. and the NAR to formulate marketing campaigns that educate the public about the reasons both parties in a transaction need representation. And she is looking forward to what the Board will accomplish because “making a difference matters.”

Chip McAllister

F

irst licensed as a real estate agent in 2015, Chip McAllister has been a member of Orange County REALTORS® for four years. He explains that, after winning the CBS Emmy-Awardwinning television program The American Race, he and his wife Kim realized they could do anything they wanted if they worked together. Chip explains that Kim had always wanted to be a REALTOR®, that he decided to follow her dream, and that the result was “a perfect match.”

A recent graduate of the OC REALTORS® Leadership Academy, Chip—who describes himself as “an encourager who loves helping people”—is vice chair of the Education Committee. He adds that he wants to help new REALTORS® learn how to deal with clients, how to work comfortably with other agents, how to fill out forms correctly, and how to follow rules to the letter.

Asked to identify the greatest threat to the real estate profession, Chip mentions “discount groups who are not client minded and don’t provide service.” He says it is important for the general public to think of REALTORS® as “ethical people who are essential to a real estate transaction” and wants the local, state and national Associations of REALTORS® to let people know what REALTORS® have to offer and that they stand ready to help in every way that buyers and sellers need.

“Kim and I want people to enjoy the process,” he adds.

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COVER STORY

Lori Namazi

A

fter September 11, 2001, Lori Namazi was unhappy in her job and did some serious soulsearching. She explains, “I wanted to be in a field where the work really mattered.” Lori had recently married, and she and her husband Ali were blending two families. “Purchasing a home together made our union complete,” she explains, “and gave our daughters the stability we wanted for them.” Then she adds, “I wanted to help others find that same sense of fulfillment.”

Lori became a member of Orange County REALTORS® about ten years ago, after transferring from another Association. She previously served as a Director in an appointed role for one of the large brokers; however, after becoming an independent broker, she wanted an opportunity to be a voice for other independent brokers and successfully sought election to the Board.

Asked to name the biggest threat that REALTORS® face today, Lori replied emphatically, “Fear!

Fear is the biggest threat to REALTORS® yesterday, today, and tomorrow. We are constantly bombarded with conflicting information, threats of new companies and new models, plus disruptors and changing technology that may or may not replace us. Those who can quiet the chaos in their ears continue to work during the changing—and challenging—cycles.”

“I have been a proud real estate professional for seventeen years,” adds Lori. “I am an advocate for having agents become familiar with what our local, state, and national Associations provide to us as part of our membership. Now, more than ever, it is important for us to be united to face the challenge of our changing industry. If you want to grow in your business, look beyond the number of transactions you do. Look into ways to stay informed and advocate for our industry. The benefits are worth the investment.”

Scott White

F

ourteen years ago, Scott White decided to change careers. As he describes it, he had been working for a person with no integrity. He wanted to help people without having someone force him to compromise his values. He obtained his real estate license in 2005 and joined Orange County REALTORS® in May of that same year.

Scott, who says that his passion is giving back to others through training and advocacy, has chaired the OC REALTORS® Education Committee, is a trustee for the Political Affairs and Elections Committee, has served for over three years as a facilitator for New REALTOR® Orientations, and has been a mentor to more than twenty-five REALTORS® and OC REALTORS® volunteer leaders. He explains that he sought reelection to the Board of Directors “because being a board member allows me to have a say in the direction of our industry.”

Scott identifies government regulations and disruptors like Amazon, Redfin, and Zillow as the biggest challenge—or threat—that REALTORS® face today and believes that the best way for Orange County REALTORS® to prepare its members to cope with this challenge is to “educate, educate, educate.”

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MEMBER SERVICES

With the Establishment of The RAW Group, Orange County REALTORS® Offers a New Kind of Help—and Hope!

Understanding that everyone needs help at some point, Orange County REALTORS® has established The RAW Group, a safe place where both REALTOR® and Affiliate members can share personal stories of struggle and hope with one another.

By Sherri Butterfield WRITER AND EDITOR

D

uring a recent college commencement address, Houston Texans Defensive End J.J. Watt told University of Wisconsin– Madison graduates, “No matter how tough you may be, everybody needs to ask for help at some point in their lives.”

Watt, who was co-named Sportsperson of the Year for 2017 by Sports Illustrated for his humanitarian efforts, knows something about help—and helping. Two years ago, when Hurricane Harvey devastated Houston, his Justin J. Watt Foundation raised and distributed $41.6 million for flood relief.

Although hurricanes are infrequent, life storms are not. People go through dark periods in which they struggle to find their way. They face career and financial uncertainty, receive frightening diagnoses, suffer from paralyzing bouts of anxiety and depression, and fall victim to alcoholism or drug addiction—their own or that of a family member.

Aware of these challenges and wanting to find a way to meet the need for help among both REALTORS® and Affiliates, former Orange County REALTORS® Treasurer Adam Rodell sought a second term on the Board of Directors so that he could ask fellow Directors to approve and support establishment of a new group.

Rodell called this group The REALTOR® and Affiliate Wellness—or RAW—Group. “The idea,” says Rodell, “is that someone with a problem does not have to walk into a group of strangers. Instead, he or she can walk into a room full of people who

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have had a similar experience and might be able and willing to help. Group members can feel comfortable because they feel understood.”

Rodell based the format for The RAW Group’s initial meetings on the one that is common to twelve-step recovery programs. But The RAW Group is self-governing and can take its meetings and programs in any direction its members feel might be appropriate or beneficial. Some meetings are primarily conversational, and others feature a speaker.

Membership in The RAW Group is voluntary, anonymous, and open to all REALTOR® and Affiliate members of Orange County REALTORS®. There are no requirements other than the willingness to help and be helped in

MEMBER SERVICES

“We don’t have to do all of it alone. We were never meant to.”

— Brené Brown in Rising Strong

UPCOMING MEETINGS LAGUNA HILLS August 5 October 8 December 3

FOUNTAIN VALLEY July 9 September 10 November 5

www.ocar.org/raw return. Any REALTOR® or Affiliate member of Orange County REALTORS who believes that he or she might benefit from the meetings is welcome to attend.

Orange County REALTORS® provides a place where The RAW Group can meet once a month and announces the group’s meeting schedule. Meetings are held on the second Tuesday of each month and alternate between the Laguna Hills office and the

Fountain Valley office. The place and time are posted and announced in advance.

There is no agenda other than voluntarily sharing experiences as a way of providing help and fostering hope. “We are simply a group of people who come together to help one another live with and overcome everyday life challenges,” says Rodell. He adds that the key message of The RAW Group is, “You are not the only person who faces tough challenges. No one has to walk through his or her challenges alone.” n

Adam Rodell began his real estate career in 1998 and has been a top-producing member of Orange County REALTORS® for more than twenty years. Currently, he is a Director for both the local and state Associations, is a member of the Orange County REALTORS® Finance Committee, and chairs the Political Affairs and Elections Committee. In 2018, he was honored by Orange County REALTORS® as REALTOR® of the Year. On April 2, Orange County REALTORS® Writer and Editor Sherri Butterfield interviewed Rodell about The Raw Group, and the preceding article is the result of that interview.

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MEMBER BENEFITS

MAKE A NAME

FOR YOURSELF

WITH FARMING MATERIALS! Door hangers and other print materials offer useful ideas and make it easy to leave contact information with prospective clients.

Marissa Hughes COMMUNICATIONS COORDINATOR

F

arming is a tried and true method for capturing new leads and establishing your brand in a specific area. An effective farming strategy should involve an investment in planning and creativity, but farming materials don’t have to break the bank to be successful.

As a member of Orange County REALTORS®, you can pick up free farming materials from either the Laguna Hills office or the Fountain Valley office to use as marketing tools in your neighborhood. And there are farming materials for every season!

Start the summer with acres of fun at the Orange County Fair and share great tips for saving energy from San Diego Gas & Electric!

OC Fair Coupons

Although door hangers are an effective way to market your business, switching up farming materials is a great tactic for catching and keeping the attention of homeowners—and what better way to do so than with OC Fair coupons!

Encourage homeowners to start their summer in the sun at the OC Fair at a discounted price! You can pick up coupon books good for $2.00 off admission.

Whether the goal is to eat delicious food, see live performances, play games, view exhibits, or shop, the Orange County Fair is the place to be!

SDG&E’s “Top Energy-Saving Tips” Door Hangers

SDG&E has provided complimentary door hangers that describe ways to save energy. Tell homeowners in your neighborhood how to be more energy efficient at home, where they can find savings online, and what rebates SDG&E offers on select Nest and ecobee smart thermostats! Attach your business card to these easy-to-use materials and leave them with potential clients so that they will remember your name and have ready access to your contact information.

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MEMBER BENEFITS

Fall seems to be the season when the real estate market slows down. Why not take advantage of the slowdown to remind homeowners why it is beneficial to use a REALTOR® in any season?

“Benefits of Using a REALTOR®” Door Hangers

Establish yourself as the go-to real estate professional in your farm with our “Benefits of Using a REALTOR®” door hanger! This eye-catching piece highlights the advantages that both buyers and sellers derive from using a REALTOR® to facilitate any real estate transaction.

A new year calls for new projects and new goals! Help your clients master their projects and achieve their goals by providing them with a guide.

Resource & Home Services Guide

Orange County REALTORS® publishes an updated Resource & Home Services Guide at the beginning of each year; but the 2019 Resource Guide, which contains a comprehensive list of Orange County REALTOR® Affiliate members and highlights member benefits and discounts, is still available. So, if someone needs a lender, mold inspection expert, or maybe something totally different like an assisted living facility, a catering service, or a local mechanic, then the Resource Guide has them covered.

Kick start spring cleaning by reminding homeowners to donate rather than discard unwanted clothing, furniture, and housewares.

Salvation Army Door Hangers

The Salvation Army has made available door hangers to promote its Real Estate for Rehabilitation (RER) Program, which are ideal for the spring-cleaning season!

This program is designed specifically for real estate professionals as a value-added service for their clients. When you schedule a pickup through RER, you can expect to receive service within days (not weeks!)—and you can even request a wholehouse clean-out, if necessary!

All these farming materials are available at no cost to members of Orange County REALTORS® in either the Laguna Hills office or the Fountain Valley office while supplies last (limit 200 per member). n OC REALTOR®

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THE ORANGE COUNTY HOUSING UPDATE

Tick…

Tick…

Tick…

The window of opportunity to take advantage of the Summer Market is already beginning to close.

By Steven Thomas REPORTSONHOUSING.COM

S

ummer is here! It is the season of longer days, plenty back to school. That means closing on a home of Southern California sunshine, beckoning sandy and moving into it by the end of August. To beaches, and refreshing dips in the pool. With close by the end of August, a home needs summer comes all of its distractions. There are also to be placed into escrow by the end of July. family vacations, Disneyland, California Adventure, the Typically, a home takes about a month to Discovery Science Center, Knott’s Berry Farm, Legoland, close after negotiating a deal and opening Magic Mountain, Raging Waters, Sea World, and the escrow. In looking closely at the housing San Diego Zoo. cycle, demand starts to drop at the end of The best time of the year to sell a home, the Spring Market, is officially in the rearview mirror. It is now the Summer Market, the second-best time of the year to sell a home. For some, buying a home takes a back seat to family fun. Many will still purchase, but not with an extreme sense of urgency like in the spring.

Sellers and real estate agents have already felt the shift in the marketplace. It started a few weeks ago with college graduations. Today, the sense of urgency has shifted from buyers to sellers. Sellers know that they need to open escrow soon or risk passing up the opportunity to sell during the Summer Market. In fact, they have six weeks to negotiate a deal before the market slows even further.

Here is the thing. Most potential Figure 1. In 2018, through May, demand (the number of new pending sales in the buyers prefer to move during the prior thirty days) was down by 13 percent compared with 2012 through 2017, the summer months, before the kids go housing recovery. In 2019, it is down 20 percent compared with those same years.

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THE ORANGE COUNTY HOUSING UPDATE

June. From there, it plateaus during the month of July. Finally, demand steadily drops from the start of August on.

There is something to be said about reaching August in the housing market. At that point, the end of the “school summer” is fast approaching. Buyers with schoolaged children start backing away from the housing market. Because moving during a school year is very distracting, many buyers put the home-buying process on hold and wait until the following year.

Sellers really need to understand that the window of opportunity is closing. Not only are there only weeks left before many will have missed the boat, but also this year is a bit more challenging than previous years.

Demand is muted compared with 2012 through the 2017 (see Figure 1).

This trend emerged last year. In 2018, through May, demand (the number of new pending sales in the prior thirty days) was down by 13 percent compared with 2012 through 2017, the housing recovery.

In 2019, it is down 20 percent compared with those same years.

The muted demand has made it more challenging to sell. Homes are not appreciating like they used to. They have paused because values have reached record levels and affordability has deteriorated tremendously. Over the years, incomes did not keep up with home price appreciation. Many believe that the current seven-year housing run is reaching a peak and running out of steam. These factors are softening demand.

There are a lot more homes on the market. In fact, this is the highest

active inventory level since 2011 (see Figure 2). The inventory reached 7,500 homes for sale at the beginning of June. That is 27 percent more than last year, an additional 1,600 homes. The big rumor is that there are a lot more homeowners opting to sell and flooding the market. The reality is that there are nearly the same number of sellers coming on the market year after year. In 2017, from January through May, 18,264 homes were placed on the market. In 2018, there were 18,199. And there were 18,180 this year.

No flood. Instead, fewer and fewer listings have been converted to sales because of muted demand. With less sales success, the active inventory has grown.

For sellers, it is like the tick… tick… tick… of valuable time passing by before the summer housing train leaves the station.

Come August 1, sellers will feel another noticeable shift in the housing market. To find success and truly take advantage of this second-best time of the year to sell a home, sellers absolutely, unequivocally must price their home with care. Ignore the impulse to arbitrarily price a home, stretching the asking price significantly above the most recent comparable sale. That is a recipe for disaster. A home priced $20,000 above that sale will sit with very little activity, attract no offers to purchase, and lose valuable market time. Instead, sellers really need to rely on the expertise of a seasoned, experienced REALTOR®. Tick... tick… tick…

Figure 2. The active listing inventory reached 7,500 homes at the beginning of June.

This is 1,600 more homes than last year and the highest inventory level since 2011.

Because of muted demand, fewer and fewer listings have been converted to sales; therefore, the active inventory has grown.

Steven Thomas has a degree in quantitative economics and decision sciences from the University of California, San Diego, and more than twenty years of experience in real estate. His bimonthly Orange County Housing Report is available by subscription and provides housing market analysis that is easy to understand and useful in setting the expectations of both buyers and sellers.

His website is www.ReportsOnHousing.com.

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SUMMER SAFETY

Drowning Is a

Preventable Tragedy

Make it your mission to prevent drowning by limiting unauthorized pool access, teaching children to swim, and watching the water!

By Sherri Butterfield WRITER AND EDITOR

D

rowning is suffocation by submersion. It can occur in as little as twenty seconds and will occur within three minutes. Drowning rates are highest among children ages one through five. Children can drown in as little as two inches of standing water, but most drownings of young children occur in home swimming pools. In fact, the USA Swimming Foundation reports that nearly ninety children under the age of fifteen drowned in a pool or spa from January through May last year. Tragically, nearly half of all drowning incidents are fatal.

According to the Orange County Fire Authority, drowning is the leading cause of accidental death among children under the age of five, and the second leading cause of death in children under the age of fourteen.

But adults fifty years old and older account for more than half of the drownings each year. The most common reason children drown is a lapse in active adult supervision. Adults drown because they swim alone, and no one is around to help them if they are injured, suffer a seizure, or otherwise become incapacitated while in water.

Drowning is a preventable tragedy. Take steps now to prepare yourself, your family, and your pool for a safer swimming season.

1. Prepare yourself. Learn to swim. Brush up on rescue and lifesaving techniques—including cardiopulmonary resuscitation (CPR).

2. Prepare your pool. Mount a lifesaving ring, a

shepherd’s hook, and a CPR sign near your pool.

And keep a working phone close by to summon help quickly in an emergency.

to prevent a small child from entering your pool unnoticed, install an unclimbable, five-foot fence between your residence and the pool. Install a self-closing and self-latching device with a release mechanism at least 54 inches above the floor on the door of your home that leads directly to the pool. And place in your pool a motion-sensing alarm that will sound in the event of accidental or unauthorized entry.

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Photo: www.istockphoto.com/nikkytok

3. Install at least two safety devices. For example,

SUMMER SAFETY

4. Teach children to swim. The Centers for

Disease Control and Prevention says that participation in formal swimming lessons can reduce the likelihood of a childhood drowning death by 88 percent.

5. Supervise the pool when it is in use. Do not rely on either swimming lessons or flotation devices to make any child “water safe.” Constantly supervise youngsters when they are near water and remain within arm’s reach of any very young child who is in water. When swim time is over, be diligent about ensuring that no child reenters the water unnoticed, unaccompanied, or unsupervised.

6. Designate a Water Watcher. During pool

parties, ask responsible adults to take turns supervising the pool or spa area and make the assignment official by giving the designee a Water Watcher tag to wear.

7. Never swim alone. Even if you are a very good swimmer, always swim with a companion who can provide help if you need it.

8. Avoid mixing prescription medications,

alcohol, and water. In far too many instances, this combination has proven to be fatal.

For More Information

T

o learn more about drowning prevention, water safety, and where to purchase barriers, sensors, and other water-safety devices, visit one or more of the following websites:

The Centers for Disease Control and Prevention www.cdc.gov Jasper Ray Foundation www.jasperray.org Orange County Drowning Prevention Task Force https://drowningpreventionoc.org Orange County Fire Authority www.ocfa.org/SafetyPrograms/DrowningPrevention.aspx USA Swimming Foundation www.usaswimmingfoundation.org

Jasper Ray

“It’s your job to keep me safe!”

I

n the past five years, more than two hundred Orange County residents have lost their lives as a result of drowning. One of them was a little boy named Jasper Ray. Jasper’s home did not have a swimming pool, but his babysitter took him to a neighbor’s home with an unfenced backyard pool.

At the age of twenty-one months, Jasper did not associate water with danger; water meant bath time and fun.

Left unsupervised for only moments, the toddler found his way to that pool and fell in. Without oxygen, Jasper suffered fatal brain injury. He died at a hospital one week later.

Jasper’s parents established the Jasper Ray Foundation (www.jasperray.org), a nonprofit dedicated to raising awareness of child water safety and drowning prevention, to spare other families from having to experience the pain and loss they endured.

One result of their efforts was passage of California’s Pool Safety Act, which requires that swimming pools and spas be equipped with at least two safety features, such as an unclimbable five-foot fence, a self-closing and self-latching lock on the door that leads to the pool, and a motionsensing alarm that will sound in the event of accidental or unauthorized entry. n

Photo from the Jasper Ray Foundation

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5

FEATURE STORY

Things

Consumers Need to Know About

Homeowners’ Associations

Before purchasing a home in an HOA, consumers need to know that these associations are self-governed, have assets and liabilities, play by rules, and offer measurable advantages that many homeowners appreciate.

1.

They are self-governed.

California Civil Code Sections 4000–6150, which is also known as the DavisStirling Common Interest Development Act (the Act), is the primary law governing homeowners’ associations (HOAs) in California. It recognizes association governing documents, such as Conditions, Covenants, & Restrictions (CC&R’s), Condominium Plans, Subdivision Maps, Articles of Incorporation, Bylaws, and established Rules and Regulations, as controlling the operations of HOAs. The Act authorizes the board of directors, elected by association members, to make decisions regarding a myriad of issues. Members may adjust their documents as desired, provided they follow the procedures for doing so that are outlined in the Act and in their own governing documents. Want to change the operation hours of the pool, clubhouse, or laundry rooms? Want to add, remove, or alter an amenity? Want to have a giant block party on the Fourth of July? Members control how the community operates. Policies, procedures, finance—they’re all controlled by the association members and the directors those members elect.

Bottom line: All it takes are volunteers to seek the elected offices, serve on the

committees, and communicate with their neighbors regarding what they feel is best for the community.

2.

Follow the money.

HOAs operate as corporations. They have assets and liabilities, income and expenses, that must be accounted for. Having ownership in an HOA means one has a proportionate responsibility to fund the community’s operations, maintenance, and capital expenditures. Consumers should familiarize themselves with association financial operations and reporting practices to ensure that they are fiscally sound.

What Every REALTOR® Needs to Know Before Selling in an HOA

UPCOMING SESSIONS: n September 10 in Laguna Hills: 9:00 a.m. – 11:30 a.m. n December 3 in Fountain Valley: 9:00 a.m. – 11:30 a.m.

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of the community? Do they have a robust reserve fund? How much have the assessments increased in the past ten years? How much are they expected to increase in the next ten years? Are any special assessments scheduled or anticipated? Associations are required to produce and maintain a variety of budgets, reserve studies, and financial disclosures that must be distributed to the membership annually.

Bottom line: It is important to review the financial information to understand what impact it may have on your personal finances.

www.istockphoto.com/Jane Kelly

Ask yourself: Is the operating budget capable of meeting the needs

FEATURE STORY

3.

Rules are rules.The

financial benefits of community association living have long been established: shared costs reduce personal expenditures. The tradeoff is the rules and restrictions placed on each unit. The language in the Act is clear; and the courts have, with few exceptions, continued to view the governing documents and decisions of the boards of directors as proper authorities. The reason you can’t paint your house purple with green and yellow polka dots is that members have agreed on conditions designed to maintain the aesthetic integrity of the community.

As noted above, if the members want to amend association operations or policies, there are procedures for doing so. But defying governing documents can be costly.

Prevailing party clauses are in effect in most instances; therefore, if at the end of the legal process—which can be quite long and cash consuming—you are not the prevailing party, you must pay the prevailing party’s legal fees.

Bottom line: Be sure to review the rules and restrictions carefully when considering the intended use of the property.

4.

There is an entire industry to serve you.

The Common Interest Development (CID) industry is now decades old. There are 46,000 associations in California, housing more than 9 million people. There are thousands of experts with years of experience ready to serve the needs of your community. HOAs have specific operational requirements that must be diligently met.

Understanding the needs of three hundred owners, versus one owner, is significant. Because of the notices that must be provided, the financial planning and authorization process that must take place, the potential displacement of residents, insurance and security issues, and building and grounds maintenance, working with HOAs requires special knowledge and experience.

Community Associations Institute (CAI) was founded in 1973 to serve those who live in CIDs. Currently, CAI has 40,000 members in sixty-four chapters worldwide. CAI has the world’s largest library of material available to people living in community associations. Orange County is the state’s largest of the eight chapters in California, and all have lists of hundreds of service providers with years of experience working with boards of directors and community association members to provide the resources needed to ensure a desirable living environment.

By Scott Clements CEO, RESERVE STUDIES INC.

Scott Clements is chief executive officer of Reserve Studies Inc. He serves on the Education Committee for Community Associations Institute Orange County Regional Chapter. A popular author and speaker about common interest developments, Scott was recognized as 2010 Educator of the Year.

5.

Most people like HOA living.

The percentage of California’s population living in homeowners’ associations continues to rise. According to a 2018 Zogby Analytics study for the Foundation for Community Association Research, 85 percent of residents rate their overall community association experience as positive, 81 percent indicate that they are on friendly terms with their homeowners’ association, and 81 percent say that their personal interaction with their community manager was a positive experience.

Statistically, homes located within a community association appreciate or retain their value at a higher rate than those located outside an association. Crime rates are lower in HOA communities than in neighboring non-HOA communities. CAI economists predict the percentage of the population living in homeowners’ associations will pass 50 percent before 2050. This growth in population and percentage is attributable to the desirable economics, amenities, lifestyle, and social benefits that community associations can provide.

To learn more about community association living, visit the Community Associations Institute Orange County Regional Chapter website at www.caioc.org.

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OC REALTORS® COMMITTEES

RISK MANAGEMENT Forum TACKLES

TODAY’S HOT TOPICS

Risk Management Committee Chair Michele Harrington (center) greets Risk Management Forum panelists (from left to right) Wayne Woodyard, Tom Wagner, Sandra Deering, and Leonard Newman following their presentations.

Panelists discussed sober living homes, copyright infringement, do-not-call rules, proper identification on solicitation materials, new forms, and procuring cause.

By Sherri Butterfield WRITER AND EDITOR

T

Martha Mosier Martha Mosier discusses sober living homes and warns against copyright infringement.

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Sober Living Homes. The house across the street is a sober living home. Is this something you need to disclose? No. Under California law, when six or fewer residents come together to transition, the residents are a protected class, and where they live is supportive housing, not a nuisance that requires disclosure.

Photos by Marion Butterfield

hree years ago, 2016 Orange County REALTORS® President Wayne Woodyard wisely decided that Orange County REALTORS® needed a Risk Management Committee and asked Bob Hunt to be its first chair. In Bob’s words, the purpose of this committee was “to inform our members, as best we can, what risks are inherent in which kinds of business situations and what can best be done to avoid those risks.” Toward this end, on May 22, the committee, which is now chaired by Michele Harrington, hosted a Risk Management Forum. What follows are some of the ideas expressed by the panelists who participated in that forum.

OC REALTORS® COMMITTEES

Copyright Infringement.

People copyright their floorplans, phrases, and photographs. A photograph does not need to carry a copyright symbol or a watermark to be a protected work. And merely acknowledging the source or giving a shout out to the photographer does not exonerate you. We recommend that you avoid plagiarizing colorful metaphors in describing a property or using floorplans without permission. And we advise you to obtain permission from a photographer in writing—and ask for it “in perpetuity.”

Tom Wagner Do-Not-Call Rules. In 2003, the Federal Trade Commission (FTC) amended the Telemarketing Sales Rule (TSR) to prohibit telephone solicitation to both residences and cell phones if the party being called is on the National Do Not Call Registry. The exceptions are for (1) business phones; (2) prior written permission; (3) an established business relationship, meaning a transaction in the past eighteen months or an inquiry in the past three months; and (4) a personal relationship (i.e., a family member, friend, acquaintance).

Penalties for violating these rules include fines of as much as $100,000 or more per violation, and consumers can seek actual damages.

Where you normally get into trouble is when you buy lists of numbers to call. The California Association of REALTORS® (C.A.R.) was able to carve out an exception to the California

Do-Not-Call Law in some instances for real estate agents; however, if no exception applies, C.A.R. suggests calling at work, going in person to the home, sending a letter, or sending an email or fax—but in the latter two instances, additional rules may apply.

Real Estate Cleanup Law. The passage of Assembly Bill 1289 brought some of the language of real estate law into conformity with common usage.

One example is that the words “transferor” and “transferee” were replaced by the words “seller” and “buyer.”

Sandra Deering

Leonard Newman

Proper Identification on Solicitation Materials. The California Department of Real Estate (DRE) is looking closely at how you identify yourself on your first-point-of-solicitation materials, including your website, your mailers, your print advertising, your marketing materials, and your email signature. The Commissioner wants to be able to find you.

To avoid difficulty, use your broker’s official name and make it the same size as your own, use your surname, and include your DRE number. Be sure that your DRE number is on everything, including note pads, email signature, and open house signs. Open house signs must have your name, your broker’s name, and your DRE number.

Procuring Cause. The National Association of REALTORS® (NAR) defines the term procuring cause as the “uninterrupted series of causal events which results in the successful transaction.” It is a factors test that does not necessarily have one triggering event which gives a sure result.

NAR has provided a chart (not to be confused with a checklist) to assist in determining procuring cause. In deciding a dispute, some of the factors listed on this chart are given more weight than others. Chart Factors 1 through 7 characterize the relationship of both brokers to the buyer in the transaction.

Chart Factors 8 through 10 focus on why the buyer left the Intro Broker. Chart Factors 11 through 18 focus on the conduct of the Closing Broker.

For example, did the Closing Broker engage in inappropriate conduct that contributed to a “break” in the chain of events started by the Intro Broker, which otherwise would not have occurred?

Wayne Woodyard New Forms. In some instances, new owners of a property have asked to store belongings on the site—perhaps, in a garage or an outbuilding—before they take possession and move in. For this purpose, there is now a Pre-Occupancy Storage Addendum (POSA).

But never suggest or push to have this happen because of the potential liability and the possible confusion over whose insurance covers damage or loss.

Sometimes, managing risk becomes a matter of putting ethics into practice and ensuring that business behavior conforms to professional standards. n

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Photos: © 2019 The Chamberlain Group, INC. All Rights Reserved.

GADGETRY

Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener Installation of this device is one way to ensure that your garage door is ready to operate during an electrical outage, in compliance with California SB 969.

By Albert Ornelas DIGITAL MEDIA SPECIALIST

“In some cases, time is of the essence. When you need to get your car out of the garage quickly to flee from a hurricane or a forest fire, you might not have the extra time it takes to manually open your garage door when the power is out.”

— Jackie Lorenty,

Vice President of Chamberlain and LiftMaster Brand Garage Door Openers

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he recent California wildfires revealed that, during a power outage, failure of a garage door to open can result in injury or death. In 2017, five people died because they were unable to open their garage doors manually. To prevent tragedies of this kind, the California Legislature passed SB 969. This bill, which was signed by Governor Jerry Brown on September 21, 2018, and went into effect on July 1, 2019, requires that all new garage door and garage door opener installations include garage door openers that are equipped with battery backup technology designed to operate the garage

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door in the event of a power outage.

For the 70 percent of homeowners who use their garage door as the main entry to their home, a power outage can become not only an inconvenience but also a major safety and security issue.

“In some cases, time is of the essence. When you need to get your car out of the garage quickly to flee from a hurricane or a forest fire, you might not have the extra time it takes to manually open your garage door when the power is out,” explains Jackie Lorenty, vice president of Chamberlain® and LiftMaster ® Brand Garage Door Openers.

The Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener fills your garage with 3,100-lumen LED lighting. Using your smartphone with the built-in Wi-Fi® and myQ smart technology, you can connect conveniently to your garage, whether you’re at home or away.

To solve this problem, Chamberlain® and LiftMaster ® brands offer an extensive line-up of garage door openers that have a battery backup function. One of these, the Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener, is not only equipped with battery backup to enable you to get safely in and out of your garage when the power is out but also makes it possible for you to monitor and control your garage door from anywhere, to receive packages with ingarage delivery, and to preset times for your garage door to open and close and for the garage lights to turn on or off.

Once this device has been installed, you will need to monitor and maintain the battery to ensure that it is fully charged and functioning properly. Chamberlain® and LiftMaster ® Garage Door Openers with Battery Backup use green, orange, and red LED lights to indicate the amount of power remaining. Also, an audible beep sounds every two seconds when the opener is operating on battery power and every thirty seconds when the battery power is low and the battery needs to be charged or replaced. Typically, these batteries need to be replaced every year or two, depending on opener usage and environmental conditions.

The new Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener also features myQ® smart technology, which allows you to control your garage door from anywhere via your smart phone. Using the myQ app, you can receive real-time notifications and preset schedules for the garage to open or close at certain times. And myQ guest ® allows you to share access securely with up three different people.

The myQ Smart Garage Door Opener enables secure in-garage delivery for Amazon Prime packages. You can monitor and control your deliveries from your smartphone and receive real-time package-tracking updates.

By linking the myQ app to the Key by Amazon app, eligible Prime members can receive secure in-garage delivery of Amazon Prime packages. With Real-Time Updates, they can monitor and control deliveries from their smartphone.

The Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener lighting system is designed and engineered with advanced technology that fills the entire garage with 3,100 lumens of daylight-like lighting, a feature that is helpful whether you spend a lot of time working in your garage or simply need to find something that you tucked away in a corner or cabinet.

To learn more about Chamberlain® and LiftMaster ® Brand Garage Door Openers, including the Chamberlain Corner to Corner Lighting™ Smart Garage Door Opener and myQ® smart technology, visit www.myq.com/smart-garagedoor-opener.

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AFFILIATES IN ACTION

Affiliates Assist at New REALTOR® Orientations in May and June Orange County REALTORS® thanks the Affiliates who assisted at the New REALTOR® Orientations on May 7, June 1, and June 12, and congratulates the new REALTOR® members who joined Orange County REALTORS® on those occasions.

May 7 w

Laguna Hills

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on May 7 in Laguna Hills were (from left to right) Van Gordon, Farmers Insurance; Rick Davenport, Pillar to Post Home Inspectors; Kristine Holliday, Escrow Leaders; Gary Bridge, First American Title; 2019 Affiliate South Chair Joe Pierce, Iron Key Escrow; Kim Jones, Kgrafix Creative Design; and Chebel Mina, Broadview Home Loans.

June 1 w Laguna Hills Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on June 1 in Laguna Hills were (from left to right) Dan Stone, The Mortgage Fee Coach; Diana Aguilar, Generations Escrow; Don West, BPG Inspections; Jennifer Rich, Farmers Insurance; and Noah Prestwood, First American Title (not pictured).

June 12 w

Fountain Valley

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on June 12 in Fountain Valley were (from left to right) Jonathan Pettibone, Stewart Title; 2019 Affiliate North Chair Corvi Urling, loanDepot; Kathryn Tapie, Pacific West Credit; Paula Camerena, Pillar to Post Home Inspectors; Erik Ogunsanya, Corner Escrow; and 2019 Affiliate North Co-Chair Kerri Finch, J&J Coastal Lending.

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MENTIONS

Thanks for Republishing the Bob Hunt Article hanks to the editors and writers at the T OC REALTOR magazine (May/June 2019 issue) for including and republishing the Bob Hunt article ®

“Homeownership and the American Dream.”

Bob correctly wrote and reminded us that “the essence of the American dream was, and I think still

is, the idea that America is a land where by effort one could better one’s condition and one’s children could live lives better than their parents.”

Bob Hunt was a great friend of us all. I miss him— while his writing about real estate topics and ethics lives on.

Harrison K. Long REALTOR® and Broker Associate, HomeSmart Evergreen Realty Editor’s Note: All of us who had the pleasure of knowing and working with Bob Hunt miss him terribly and are grateful to find his spirit in the many wise words that he wrote.

CALL FOR CONTENT TO BE INCLUDED ON THE MAGAZINE MENTIONS PAGE The Orange County REALTORS® and OC REALTOR® welcome emails and social media postings for possible publication on the Mentions page in this magazine. These written materials should be brief (about 150 words) and cover real estate–related topics. They might offer comments, make suggestions, ask questions, or contain tips or ideas based on personal experience and intended to help REALTORS® in some way.

Submitted emails and media postings must include the writer’s name and email address (for verification) though only the name will be published. They also should include any title or affiliation by which the writer wishes to be identified in a single line below his or her name.

All written material may be edited for content, length, or style and may appear either online or in print. Emails become the property of Orange County REALTORS®. Although some may be answered, none will be returned. Emails intended for publication should be sent either to Director of Communications Sabrina Blair at Sabrina@ocar.org or to Writer and Editor Sherri Butterfield at Sherri@ocar.org.

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MEMBERSHIP

We Offer a Twelve-Month Payment Plan— Our Most Affordable Dues-Payment Option This option is available to primary REALTORS® who are paying all REALTOR® dues and Multiple Listing Service (MLS) fees at Orange County REALTORS®.

automatic monthly payment plan for your 2020 Orange County REALTORS® dues and MLS fees.

The twelve-month payment cycle for your 2020 dues starts on August 10, 2019, and ends on July 10, 2020. The monthly payment amount of $92.55 for REALTORS® includes a $5.00 nonrefundable convenience fee. Payments made from August to December are pre-payments and are refundable if you cancel your membership before January 10, 2020; however, the $5.00 monthly convenience fee is not refundable.

New enrollees may sign up nO nline by going to My Account via www.ocar.org and clicking on the link from the menu to access the enrollment form nO nline by going to www.ocar.org/monthly-pay to download the enrollment form n In person at one of our two convenient office locations in either Fountain Valley or Laguna Hills 46

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If you already are enrolled in our monthly payment plan, no action is required unless you need to update or change the credit card on file. Please use the enrollment form to notify us of the change.

The annual REALTOR® dues may change. National Association of REALTORS®, California Association of REALTORS®, and Orange County REALTORS® dues and MLS fees for 2020 will be determined by November 2019. Once that determination has been made, the monthly payment may be changed slightly (up or down) in January to reflect the new total dues amount to be collected by July 10, 2020. If you have signed up for the monthly payment plan, you will be notified in December regarding the amount of the monthly deduction starting in January 2020.

Photo: www.istockphoto.com/GlobalStock

Enroll by August 10, 2019, in our