Legal Update

HOW THE COURTS CAN HELP REALTORS® MAKE MONEY

Most REALTORS® hope they never see the inside of a courtroom. But some court proceedings can help REALTORS® make money. Here’s a short summary of four (4) of them:

SPECIFIC PERFORMANCE

How many times have you lost a commission because the seller refused to close escrow? The Superior Court has the power to force a seller to proceed with a transaction. All conditions to a seller’s obligations must have been satisfied or waived, the contract has to be clear and unambiguous, and the purchase price must be fair to the buyer. But if those circumstances exist, a buyer can force a seller to complete a sale.

PARTITION

Have you ever wanted to list property but one or more co-owners could not agree to sell? In California, coowners have the right to separate their interests legally. If a parcel is large enough, the court can order that it be physically divided. Where it is not possible to physically divide property – as in the case of a single lot that cannot be subdivided – the Superior Court will order it sold.

QUIET TITLE

Sometimes you think you have a deal until the preliminary title report is issued and you learn that title can’t be insured for some reason. Maybe there is an old lien that was never reconveyed, or there are questions about a prior uninsured transfer of the property. There is a very flexible legal remedy known as “quiet title” in which the Superior Court can render judgement resolving title problems and allowing a transaction to close.

HEGGSTAD PETITION

Where property was not transferred to a living trust a title company may be unwilling to insure title. If you have a transaction where that is a problem, keep in mind there is a much faster and less expensive alternative to probate known as a “Heggstad petition” (named after a court case that addressed the problem). If it can be proven that the now-dead trust creators intended the property to be owned by the trust, the Superior Court will issue an order that a title company can rely on insuring title.

James E. Klinkert Ritchie, Klinkert & Gutierrez 1601 E. Orangewood, Suite 150 Anaheim, CA 92805 Phone: (909) 390-9999 Fax: (909) 390-9990 jklinkert@rkmattorneys.com

National Association of REALTORS® Legislative Meetings & Trade Expo May 9-14, 2016 Washington D.C.

Some 8,500 REALTORS® were in Washington, D.C. to meet with their members of Congress and to attend forums, committee meetings, and the trade expo. There were two major key takeaways from the meeting this year, which is the MLS policy and Student Loan Debt.

MLS Policy

With concerns growing over copyright infringement, the board approved changes to the Handbook on Multiple Listing Policy to reflect the importance of MLS users granting the MLS the licenses necessary to store, reproduce, compile and distribute listing information. Brokers – please be sure you have the rights to any listing content you – or your agents – enter into the MLS!

Student Loan Debt

In response to growing concerns over the impact of student debt on the ability to buy a home, the board adopted a policy that seeks to allow student borrowers to refinance their loans and streamline income-based repayment programs. Additionally, NAR supports proposals that promote student loan simplification, clarity, and education. And NAR will take steps to ensure that mortgage underwriting guidelines related to student loan debt are standardized and do not impair home ownership.

Fun Fact!

REALTORS® at the meetings learned about NAR’s partnership with ABC sitcom “Modern Family,” which includes integration into an episode (original air date: May 4) and ads featuring actor Ty Burrell, who portrays REALTOR® Phil Dunphy on the popular show. Burrell, who has won two Emmy awards for his portrayal of Dunphy, will make an appearance at NAR’s annual meeting in Orlando, Nov. 4–7.

California association of REALTORS® Legislative Meetings April 29-30, 2016 Sacramento, ca

C.A.R.’s Legislative Day had an overwhelming attendance of 2,300 REALTORS®. WSGVAR is proud to have sent a total of 22 members to this eye-opening meeting were they spoke about relative legislative items.

“At Thursday’s Midyear Luncheon, C.A.R. CEO Joel Singer discussed how the internet has disrupted the business models of travel agencies, bookstores, and stock brokerages. At the same time, however, the internet has helped the real estate industry. More homes were purchased through an agent or broker in recent years and more sellers used an agent or broker to sell their homes. Moreover, home buyers and sellers are more educated and the transaction process is more efficient. Joel said we may have won the first battle, but warned that we have to be concerned with website traffic of portals like Zillow, realtor.com, and Trulia growing exponentially.”

C.A.R.’s President’s Message