Official Publication of the Newport Beach Association of REALTORS. The. Coastal. News REALTOR 2018 V23 N8 AUGUST

Transcription

1 The Coastal REALTOR News AUGUST Official Publication of the Newport Beach Association of REALTORS 2018 V23 N8 NEWPORT BEACH ASSOCIATION OF REALTORS

2 President s Message Rent Control: A Cure That is Worse Than the Problem Robert Milliken 2018 President Recently, local government has been pressured to adopt strict controls on the price landlords can charge for their rental units in the city of Costa Mesa and Newport Beach. Proponents claim the drastic step of government intervention into the rental market is an appropriate response to an emergency situation: The insane escalation of rental prices has turned even the most basic, fundamental human need for shelter into an unstable, and downright scary, proposition. As rents skyrocket, renters can t be sure of whether or not they will be able to keep, let alone find, a decent place to live. Why then would REALTORS be opposed to something that is designed to help people keep a roof over their heads? It is a fair question. After all, REALTORS pride themselves on being the purveyors of the American Dream of homeownership. REALTORS know about the human need for shelter perhaps better than any other profession. In short, REALTORS know housing. And we know what kills it. Rent control is a well-meaning policy cure for a real and serious problem, but unfortunately it does not work. In fact, the cure is worse than the problem. By artificially constraining rental prices, rent control removes the incentive for landlords to improve their properties. A landlord who will not receive a fair rate of return on the property cannot afford to spend money to maintain or improve it. When property maintenance declines, it has a spiraling effect on the community. Declining property maintenance lowers values. This lowers tax revenue to local government. Less tax revenue undermines government maintenance and services, and the cycle continues. Rent control is a disincentive for builders and investors to bring new properties into the rental market. Fewer properties coming onto the market constrains an already tight supply of rental housing, putting even more upward pressure on the price of existing rentals. In other words, rent control exacerbates the very problem it is designed to solve. Rent control is not fair. Most landlords are decent respectable business people who abide by their leases and who want to keep prices reasonable. Many are also small business persons, and in some cases retirees on a fixed income, who rely on the steady income of their rental to survive. Artificially constraining the prices they can charge, and imposing burdensome bureaucracy on their business, hampers their way of life. Rent control creates a huge bureaucracy for local government. The cost to local government to administer a rent control program is enormous, and one our city cannot afford in these lean times. Finally and sadly, rent control does not help the very people it is intended to protect. Controlled units become a premium for tenants, who sublease them to family and friends under the table and at higher rates. This lowers turnover and only further limits the supply of affordable rental housing for the most needy. Again, the cure is worse than the problem. Anyone who doubts these problems with rent control need only look at many of the cities that have already tried it. Cities like New York, Los Angeles and San Francisco, for example, have lived with rent control for decades and are no closer to solving their affordability issues now than they were when those programs were adopted. But REALTORS cannot simply oppose a policy without offering an alternative. We love our community and want to offer reasonable solutions. There are other more effective ways to address the city s rental housing needs. First and foremost, the city needs more housing. City government has a moral obligation to plan appropriately so that housing can be built to address the needs of all income levels, ownership and rental. It is short-sighted at best, schizophrenic at worst, to limit supply then put a lid on prices, wondering why they have gone up. Local government can also help jump start programs to assist the rental market. Working with non-profit organizations, the state and federal government, the city can fund and implement programs that offer security deposit guarantees for people who need help getting into rental housing. The city should also consider offering non-binding rental mediation as an alternative to rent control. A voluntary, self-policing process would be the most appealing and least expensive to the city. REALTORS support the concept of socalled build by right rules that streamline the permitting of affordable housing units. Gov. Jerry Brown has proposed a variation of this concept in his state budget, but it has so far not been acted upon. There is no reason for our city to wait on the state. We should adopt a local rule that excuses affordable, appropriate housing from the morass of permitting and red tape that makes it too expensive to build. Parking space requirements, impact fees, multiple inspections and hearings ought to be reduced or eliminated for new affordable housing, especially infill projects, that meet the model rule for a streamlined permit. The bottom line is this: Rent control is not the answer to making more properties more affordable. Indeed, it is a cure that is worse than the problem it seeks to treat. We can, and must, do better for our community. ### NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE TWO

3 Contents 2019 Election Results PAGE FIVE Annual Charity Fashion Show MLS Touch App PAGE SEVEN PAGE SIXTEEN Message from the President PAGE TWO EU s General Data Protection Regulation ( GDPR ) PAGE SIX New Members PAGE FOURTEEN Calendar of Events PAGE TWENTY-TWO Official Publication of the Newport Beach Association of REALTORS 401 Old Newport Blvd., Ste. 100 Newport Beach, CA (949) The purpose of the Newport Beach Association of REALTORS is to be a service and support organization through active participation in establishing programs and services that will enhance and promote the successful business endeavors of its members. With integrity and competence, it will provide a positive link to the local community by cultivating goodwill and protecting the individual rights to own, transfer and use real property. Editor: Tricia Moore / Kimberly Foreman Production Coordinator: Ned Foley, Foley Publications, Inc. Advertising information: Copyright 2000 Foley Publications, Inc. All rights reserved. The Coastal REALTOR News The Newport Beach Association of REALTORS makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in article are not necessarily the opinions of the Association of REALTORS Officers and Board of Directors Newport Beach Association of REALTORS President - Bob Milliken Vice President - Cari Young Treasurer - Kevin Kubiak Secretary - Ken Carr Directors: Bob Braun Spyro Kemble Devin Lucas Rob Norquist Robert Pfeif Mark Todd Jennifer Wong Executive Vice President: Tricia Moore, RCE, CAE 2018 C.A.R. Directors: Bob Milliken Spyro Kemble Kevin Kubiak Rob Norquist Jennifer Wong Cari Young 2017 C.A.R. 32nd Regional Chairman: Cari Young Equal Housing Opportunity Federal law prohibits discrimination based on race, color, religion, sex, handicap, familial status or national origin in connection with the sale of rental of residential real estate, in advertising the sale or rental of housing, in the fi nancing of housing, and in the provision of real estate brokerage services. NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE THREE

4 Helping to make the perfect new home for us happen New neighborhood. Bigger house. Closer commute. Whatever your reason for buying your first or next home, we re here to help you every step of the way. Steve Glass Branch Manager Newport Beach, CA NMLSR ID Matthew Didier Sales Manager NMLSR ID My Hoang Sales Manager NMLSR ID Joseph James Pirro Sales Manager NMLSR ID Michael Prime NMLSR ID Jacob Neushul NMLSR ID Lisa I. Chen NMLSR ID Saundra L. Gonzales NMLSR ID Maryam M. Gillany NMLSR ID David L. Stiffler NMLSR ID Marta Cena NMLSR ID Mika Cooper NMLSR ID Sean Yari NMLSR ID Eric Heimstaedt NMLSR ID William Walker NMLSR ID Tina Little NMLSR ID Call or stop in to visit your Newport Beach home mortgage consultants today. Newport Beach Branch 4675 MacArthur Court, Ste Newport Beach, CA Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A Wells Fargo Bank, N.A. All rights reserved. NMLSR ID AS Expires 06/2019

5 Year 2019 Election Results OFFICERS President - Cari Young, Compass Vice President - Rob Norquist, Compass Secretary- Bob Braun, Pacific Sotheby s Treasurer - Kevin Kubiak, Compass DIRECTORS Brian Gibney, Villa Real Estate Krista McIntosh, Villa Real Estate Bob Milliken, Surterre Properties Robert Pfeif, Surterre Properties Sue Podany, Surterre Properties Scott Singer, Arbor Real Estate Jennifer Wong, Villa Real Estate NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE FIVE

6 EU s General Data Protection Regulation ( GDPR ) The importance of data privacy to consumers today cannot be underestimated. Leading the way internationally, the European Union adopted the General Data Protection Regulation ( GDPR ) effective May 25, 2018, causing a flurry of concern from companies that collect and use consumer data. But what is GDPR, what does it regulate, and most importantly, why should a California REALTOR care about a European law? GDPR, controlling law in all member states of the European Union (and Iceland, Liechtenstein, and Norway), regulates when and how businesses store and handle consumer personal data, and what rights a consumer has in such data. What could concern a California REALTOR? GDPR requires compliance from businesses operating within an EU member state, but also any business located outside the EU handling an EU person s data, if one of two conditions apply: 1) the business offers goods or services to EU persons; or 2) the business monitors a data subject s behavior to the extent such behavior occurs in the EU, which could include tracking online behavior using cookies or some other method. A California REALTOR advertising Pacific Coast holiday homes to German and Italian buyers would likely be required to comply with GDPR, but under an expansive view of the law which is new and has not yet been tested in courts of law if an EU person visits your website and you have behavior tracking implemented, that could trigger your requirement to comply with GDPR. If you have concerns, you should consult with your website vendors or a data privacy expert to develop a strategy for handling EU visitors to your website. For GDPR, Personal Data is defined broadly, meaning any information that by itself, or in combination with other information held by the business, would likely identify a living person. This can include various information like a person s personal data such as name, age and physical or address, that person s family and lifestyle details such as marital status or number of children, medical details, employment details, financial details and contractual details such as the goods and services provided to that person by the business. If a business takes any activity relating to personal data of an EU person, that business will need to comply with GDPR s requirements. Additionally, a business regulated by GDPR must not only make sure its own practices conform with the regulation, but also must ensure compliance by any third-party businesses the business has contracts with to process data on its behalf, such as vendors, service providers, and related corporate entities. To comply with GDPR, a business must clearly disclose to consumers what data it is collecting, for what purposes, and the business may not go beyond the disclosed categories and purposes. A consumer s personal data can usually only be collected, stored and used if the business can prove it obtained the consumer s affirmative consent; the consumer s silence, the use of pre-checked consent boxes, or the consumer s failure to object are all insufficient grounds to show affirmative consent. Businesses should ensure that data is kept accurate and up-to-date, and stored only as long as necessary (qualified by any legal requirements mandating longer storage, such as DRE record requirements), and the consumer must be given the right to correct any data held by the business. The business must also afford the consumer a right to be forgotten, which is the right to demand erasure of the consumer s data once there is no longer any business need and there are no prevailing legal requirements to maintain storage. The business must also ensure it adopts appropriate technical and organizational security measures so that consumers personal data is stored securely and protected against unauthorized or illegal access or use, and accidental loss or destruction. GDPR s breathtaking penalties include the higher of 20 million Euros or 4% of the business total global turnover for the previous financial year. While this level of penalty will likely be reserved for only the most egregious breaches of GDPR, a failure to comply with GDPR could prove costly. Unfortunately, it is beyond the scope of this article to cover in depth all the requirements for compliance with GDPR. Although California REALTORS should be aware of GDPR, many likely will not fall within its regulatory scope; however, if you have specific questions about your business and GDPR, you should seek your own counsel from a data privacy expert. NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE SIX

7 Wednesday, October 17, :00am Registration/Silent Auction, 12:00 noon Luncheon The Fashion Island Hotel 690 Newport Center Dr., Newport Beach $95 per person - Early Bird $115 per person after September 28th Proceeds Benefit: Orange County Youth Sports Foundation Federal Tax ID # OCYSF provides funding to youth who have physical/mental disabilities or financial hardships, to participate in sports activities they otherwise would not be able to attend. Silent and Live Auctions Fashion Boutique Please Register Me for the 2018 Charity Fashion Show Luncheon Name(s): Company: Phone: Reservations by payment - $95/$115 per person - Sorry No Refunds Tables of 10 Available - $950/$1150 Please charge my credit card the amount of $ for tickets. Visa/MC #: Exp. Date: CVC #: Signature: Or Enclosed is my check in the amount of $ for tickets. (Please make checks payable to NBAR.) Mail or Fax to: NBAR, 401 Old Newport Blvd., Ste 100, Newport Beach, CA (949) Attn: Kimberly Foreman NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE SEVEN

8 Home Loans The Bank of America Doctor Loan could help your clients buy a home If you re working with homebuyers who are medical professionals, I d like to help. Call me to learn more. The Doctor Loan is designed to meet the unique needs of medical residents or licensed, practicing doctors, dentists or other eligible medical professionals. 1 Benefits of the Doctor Loan include: Low down payments. As little as 5% down on mortgages up to $1 million and 10% down on mortgages up to $1.5 million. 2 Delayed job start. New position can start up to 60 days after closing. 3 Flexible options. Student loan debt may be excluded from the total debt calculation. 4 Choice of loan types. We offer both fixed- and adjustable-rate loan. Call today to learn how together, we can give your clients the information and guidance they need for a positive home loan experience every step of the way. Kevin Budde Sr. Lending Officer, AVP NMLS ID: Cell Office kevin.budde@bankofamerica.com mortgage.bankofamerica.com/kevinbudde 1 An applicant must have, or open prior to closing, a checking or savings account with Bank of America. Applicants with an existing account with Merrill Edge, Merrill Lynch or U.S. Trust prior to application also satisfy this requirement. Medical professional (MD, DDS, DMD, OD, DPM, DO, residents, and students whose employment begins within 60 days of closing) must be actively practicing in their field of expertise. Those employed in research or as professors are not eligible. For qualified borrowers with excellent credit. PITIA (Principal, Interest, Taxes, Insurance, Assessments) reserves of 4-6 months are required, depending on loan amount. Other restrictions apply. 2 Minimum down payment requirements vary by property type and location; ask for details. 3 If applicant s employment does not commence until after closing, sufficient reserves to handle all debt obligations between closing and employment start date +30 days must be verified. 4 Additional documentation is required. THIS INFORMATION IS NOT INTENDED OR AUTHORIZED FOR CONSUMER DISTRIBUTION. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. l Equal Housing Lender Bank of America Corporation. ARWQWBD3 HL-112-AD

9 HOT August Nights Cocktail Mixer Mixer Please consider contributing your great quality professional & casual clothing to Working Wardrobes! A collection will be taken at this event should you feel inclined to do so, please have clothing clean and on hangers. On The Rocks 2332 West Coast Hwy, NB 4:00 PM 6:00 PM Wednesday, August 1st Let s celebrate HOT August Nights with a cocktail mixer! Please join us for happy hour (no host bar) with light appetizers courtesy of On The Rocks As we are limited in space, please make a reservation to attend. RSVP by calling: NBAOR Members FREE; All others $10 NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE NINE

10 Department of the Treasury and IRS Pushback The Treasury Department and the IRS announced in Notice that they intend to propose regulations aimed at countering the efforts of California and other states in their attempts to help taxpayers get around the new $10,000 cap on state and local tax deductions. Beginning with the January 2019 tax year, The Tax Cuts and Jobs Act (TCJA) limits the deduction of state and local taxes from an individual s federal taxes to $10,000. For California and other high property value states that is likely to expose many taxpayers to an increase in their federal taxes. In response, some state legislatures are considering proposals that in effect allow a tax payer to pay their state and local property taxes into funds that could be characterized as charitable contributions and thus be fully deductible on their federal tax returns. The chartable funds would then transfer the contributions to the state and local authorities to satisfy the taxpayers liabilities. While this seemed like a way for saving many taxpayers from increased tax bills, the Treasury and IRS are saying not so fast. They remind all that federal law supersedes state law for federal tax law purposes, and that new regulations will be drafted to make this very clear to taxpayers. New Regulation Clarifies Timing of Broker-Associate Notifications Whenever a salesperson is retained, the responsible broker is required to notify the DRE within five days. For terminations, the broker has 10 days to notify the DRE. These same time periods, which are governed by Regulations of the Real Estate Commissioner 2752, are now applicable to broker-associates due to an amendment of the regulation effective May 31, of this year. As background, the broker-associate searchable information law, AB 2330, came into effect in January of this year. Its purpose was to provide online information to the consumer about broker-associates similar to that available for salespersons. While AB 2330 states that the responsible broker shall immediately notify the Commissioner of their broker-associate arrangements, the new regulation sensibly clarifies that there is a grace period for both retention and termination of brokerassociates, the same as for salespersons. The responsible broker may use RE 215 for notifying the DRE of either retention or termination of a broker-associate. Note that both the responsible broker and broker-associate must sign RE 215 for retention, but for the termination, only the signature of the responsible broker is required. NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE TEN

11 TRUSTED, TRIED & TRUE 35 Years Experience FHA / VA / Conventional Purchase / Refinance Primary Residence Second Home Investment Property Personally Funded Over $2.75 Billion in Residential Mortgages Al Hensling ext.110 Direct: Fax: alhensling@uamco.com NEWPORT NMLS #: State License # BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-SEVENTEEN NMLS #: 1942 PAGE ELEVEN

12 IrvineNOW An exciting place is coming to life at the edge of the Orange County Great Park. And we at FivePoint invite you to be a part of this new way to live in Irvine. Fresh, new homes from the high $600,000s to the high $1,000,000s Mature trees (the big shade-producing kind) Irvine Unified School District Crazy cool parks Bike power! Places to work, play and connect Decidedly anti-cookie-cutter Start your tour at our newest neighborhood, Cadence Park, located at Irvine Blvd and Modjeska GreatParkNeighborhoods.com 2018 Heritage Fields El Toro, LLC. All rights reserved. Great Park Neighborhoods, the bicycle logo, and Life Will Be Different Here are registered trademarks of Heritage Fields El Toro, LLC ( Heritage Fields ) dba Great Park Neighborhoods used for the marketing of new home neighborhoods in Irvine, California. Five Point Communities Management, Inc. ( Five Point ) is the development manager of Great Park Neighborhoods. Neither Heritage Fields nor Five Point is designing, constructing or offering homes for sale in Great Park Neighborhoods. All proposed amenities are subject to change without notice. Lifestyle photography does not reflect any ethnic or racial preference. (7/18)

13 Meet and Greet with Assemblyman Matthew Harper Region 32 hosted a meet and greet with Assemblyman Harper. REALTORS had the opportunity to get an Assembly update and discuss issues that affect REALTORS and their clients. Presentation of Offers: Change to Code of Ethics, Standard of Practice 1-7 The C.A.R. Legal Hotline often receives calls from members, especially in busy markets, expressing frustration that they are not sure that their buyers offers were ever presented to the seller. For some time, the RPA has had a section for seller to initial rejection of the offer or for the listing agent to initial that they presented the offer to the seller. However, those were a courtesy to the buyer and selling agent and not required to be completed by any law or ethical standard. That, however, is about to change. The National Association of Realtors, in response to the break down in the spirit of cooperation, has amended N.A.R. Code of Ethics, Standard of Practice 1-7. Effective January 1, 2019, a listing broker or agent is required to respond in writing that an offer was submitted to the seller if the cooperating broker who submitted the offer so requests. The listing broker or agent must respond in the affirmative unless the seller has provided written notification waiving the obligation to have the offer presented. C.A.R. is looking into ways for members to comply with the new Standard of Practice. Ideas under consideration include one or more of the following: New language being inserted into the RPA; Modifications to the existing Sample Letter titled, Demand That Offer Be Presented to Seller; A new form or letter specifically requesting a reply to the request that an offer be presented; Or a new form for the listing broker to respond to a selling broker s request. At this time, it is too early to tell whether these or other ideas will be adopted. C.A.R. will keep its members informed well in advance of the compliance starting date. NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE THIRTEEN

14 DESIGNATED REALTOR MEMBERSHIP Dianne B. Kawamura Dianne Kawamura Osung Kwon Osung Kwon Patricia Lamm Patricia Lamm Jon H. Merry Jon H. Merry REALTOR MEMBERSHIP Banuelos, Daniel Amistad Realty Grp Bradshaw, Thomas Coldwell Banker Freimuth, Colleen Arbor Real Estate Potts, Michelle Compass Riggins, Robert Coldwell Banker Surna, Andrew Pacific Sotheby s International Varga, Brandon Compass Vichikov, Valerie Knowleton Partners Inc. CLERICAL ASSISTANT Christina Washington Compass MEMBER TRANSFERS Christopher Cumming from Villa Real Estate to Compass Steven Mastropaolo from Coldwell Banker Res. to The Address Lauren Miskinnis from McMonigle Group to Pacific Sotheby s Northrup, Cynthia from Coldwell Banker Res. to Beachview Realty Fera Rezaee from Univest Inc. to Douglas Elliman of California Leina Soullahian from McMonigle Group to Keller Williams Newport Welcome New Members DEADLINE DECEMBER 31, 2018 N.A.R. is REQUIRING all REALTORS to complete ethics training of not less than 2 hours, 30 minutes of instructional time within two-year cycles. The training must meet specific learning objectives and criteria established by the National Association of REALTORS. A new two-year cycle began January 1, The deadline for this cycle is December 31, Training may be completed through local REALTOR associations or through another method, such as home study, correspondence, classroom courses, or online courses. Options: 1) REALTORS can take the free online NAR course which gives no CE Credit for license renewal or they can take the CE accredited one both available at the link below. 2) Those that renew their DRE license and certify the 45 hours, that ethics class will qualify during this timeframe, but each broker/ agent will need to submit their class certificate code to us (NBAOR anna@nbaor.com) to enter into the NAR database. FREE TRAINING AND ALL OTHER OPTIONS AVAILABLE AT: NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE FOURTEEN

15 NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-SEVENTEEN PAGE SEVENTTEN

16 Exciting news! We will be launching the MLS-Touch app as a new core product on 8/1! Up until now, it has been part of the Association Product Co-Op, with some having opted in and others having opted out. As of 8/1, it will be available to all users at no additional cost. CRMLS will be providing full support and training on MLS-Touch starting on 8/1. We plan to promote MLS-Touch to everyone through our usual channels econnects, Matrix News pop-ups, social media, website banners, a press release, and special webinars. For those users who are getting MLS-Touch for the first time, we will focus our communications on MLS-Touch as a new product offering. Users in Associations and Boards that have already opted-in to MLS-Touch will receive slightly different communications. MLS-Touch includes the following features that are common to all our apps: - It s free on the App Store and Google Play - It s powered by clean, reliable CRMLS data - Multiple listing search options, including map search - The capability to share branded, personalized apps with your clients - In-app messaging with agents and clients Additionally, MLS-Touch has some exclusive features, including: - The InstaView feature: see the nearest listing s info with one tap - The ability to pull up live market statistics on-the-go - A unique search for comparables This launch represents greater product choice for all CRMLS users. As we say at events: we have different apps because people are different. We offer multiple apps so that every user can find an app with a feature set and interface that work best for them. We hope MLS-Touch fits that need for some of your members. We are working on updating our app comparison flyer and will include it as part of our communication plan. As always, please let us know if you have any questions or concerns. Thank you! COMMERCIAL/INDUSTRIAL PROPERTY MANAGEMENT CONSULTING NO ASSIGNMENT TOO LARGE OR TOO SMALL Commercial/industrial property management and consulting services throughout Southern California. JOHN R FRAZIER PAS Commercial, Inc. John@pascomml.com (714) I am a licensed California real estate broker. I am a Lido Isle resident. I don t sell homes but I do pay substantial referral fees for property management assignments. D.R.E NEWPORT BEACH ASSOCIATION OF REALTORS JUNE TWO THOUSAND-EIGHTEEN PAGE SIXTEEN

17 DUANE GOMER EDUCATION LICENSE RENEWAL SEMINAR LOW PRICE - GREAT VALUE $114 - Members $125 - Non-Members TESTIMONIALS: GS - Van Nuys: Great presentation, wealth of knowledge, wisdom and uncanny ability to share and pass them on. LF - Palm Springs: The review course was awesome. MK - Walnut Creek: Passed with flying colors - contribute it to your excellent teaching skills and fantastic study materials. TR - Online: My gosh, was it easy & easy to access. EA - Vista: Your class in Vista was unbelievable. Newport Beach Association of REALTORS Thursday, August 23 rd, 2018 at 9:00 a.m. 401 Old Newport Blvd. #100, Newport Beach WHAT THE PROGRAM WILL COVER All students will receive the 3 hour mandatory courses of agency, ethics, trust funds, fair housing, risk management, management & supervision and two consumer protection courses by textbook or PDF. Although this meeting is not mandatory to renew your license through the use of our continuing education courses, it is our most popular. Classroom testing on 15-hour Property Management Course immediately following the course. Instructions for online exams covering remaining 30-hours will be given at the seminar. SCHEDULE 8:45 a.m. Registration 9:00 p.m. Course review 12:00 p.m. End of Session NOTE: 1. Value - Book $10 2. Money back guarantee 3. Must cancel 48 hrs prior TO REGISTER OR FOR INFO CALL (949) or DUANE.G@DUANEGOMER.COM or Name Address Zip Code Phone Please charge my VISA MC DISC AMEX BRE# Credit Card # Exp. Signature NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE SEVENTEEN

18 President Trump Signs Dodd-Frank Rollback On May 24, 2018, the President signed into law the Economic Growth, Regulatory Relief, and Consumer Protection Act, rolling back some provisions of the Dodd-Frank Act. While many of the provision are related to rolling back requirements for small and medium banks, some will have a more direct impact on Realtors. Realtors may find the following provisions of interest: TRID Relief: The Act removes the three-day waiting period required under TILA-RESPA mortgage disclosure when the creditor extends a second offer of credit with a lower APR. Mortgage Licensing: Registered/licensed loan originators are given temporary authority to act under the SAFE Mortgage Licensing Act when changing employers. Renters Protection: The Protecting Tenants at Foreclosure Act (sunset in 2014) is permanently restored. PACE Loans: Real property retrofit (Property Assessed Clean Energy) (PACE) loans are now subject to consumer protections. Servicemember Foreclosure Protection: Foreclosure relief provisions for servicemembers are made permanent. VA Loans: VA lenders are required to demonstrate a material benefit to the borrower when refinancing their mortgage. Asbestos Hazards: The Treasury Department is authorized to use loan guarantees and credit enhancements to remediate lead and asbestos in residential properties. Appraisal Services: Appraisal services donated by fee appraisers as charitable contributions will be customary and reasonable under TILA (Habitat for Humanity). Credit Union Lending: Loans secured by 1 to 4 family dwelling, that is not the primary residence of a member, is not a member business loan under the Federal Credit Union Act. Property Tax Fairness Initiative Update Earlier this year, C.A.R. began the historic effort to address California s unprecedented housing supply crisis as well as to increase homeownership opportunities for Californians by gathering nearly 1 million signatures enough to qualify the Property Tax Fairness Initiative for the November 2018 General Election Ballot. The initiative would eliminate the moving penalty for seniors 55 and older, the disabled, and victims of natural disasters, allowing them to carry their current Proposition 13-protected property tax assessment level to another home of any price, anywhere in the state, any number of times. Yesterday a group of decision makers, including C.A.R. s Executive Committee, Regional Chairs, Committee Liaisons, and Key Committee members provided input to the Leadership Team, which decided to keep the current initiative on the November 2018 ballot and file a revised initiative with the Attorney General for preparation of title and summary for the November 2020 ballot. This option will allow C.A.R. to pursue its objective on several fronts. C.A.R. Governmental Affairs staff met with the Attorney General s Office and the Legislative Analyst s Office to get revisions to the title and summary, as well as to the fiscal analysis, that will appear in this November s General Election Voters Pamphlet; these will be released on July 24. And, while the current deadline for removing initiatives from the ballot is June 28, it is possible the legislative alternative with an exception to the deadline included could be approved when the legislature returns from its summer break in August. The November 2020 ballot initiative will move portability forward while at the same time generating revenue for schools and local governments by: 1) requiring reassessment in connection with inter-generational transfers where heirs keep property for investment purposes; and 2) tightening up the reassessment law to address corporate property transfers where creative efforts are used to avoid reassessment. C.A.R. s resolve on this issue is firm. C.A.R. is committed to winning at the ballot box this November, achieving a legislative alternative, or winning in November REALTOR investment of time and resources as part of this grassroots effort will benefit clients, homeownership, and California. NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE EIGHTEEN

19 Pass your Real Estate Exam! Duane Gomer s One Day Exam Prep Crash Course Only $ Newport Beach Association of Realtors 401 Old Newport Blvd. #100 Newport Beach, CA Wednesday, August 15 th, :30 a.m. - 5:00 p.m. Fast moving One Day Live Class Glossary of Important Terms Comprehensive Course Outline Math Basics Online Flashcards Money-Back Guarantee Text Book and Online PDF Over 1,100 Practice Questions Our Live Exam Prep Class: Includes 8-hours of non-stop, fun-filled learning. During the lecture, the instructor will cover all seven subject areas tested on the exam, with time for questions. Practice Exams: There are practice questions at the end of each chapter and hundreds of practice exam questions designed to resemble your actual test. Glossary: Real Estate terms with the definitions. Included in the textbook and online. Our Exclusive Online Flashcards: Grades always increase with flashcards. Your easy to study method. Study Guide/Final Briefing: Study tips, test taking ideas, what to do and not do at the exam. Guarantee! If you fail the exam twice after taking our course twice, your tuition will be refunded. Call Duane Gomer Education to Get Started: Materials will be shipped to you if the registration is received by: 08/08/18 NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE NINETEEN

20 Proposition 65 Safe Harbor Standards Start August 30, 2018 For property managers and landlords required to post Proposition 65 warnings (those having at least 10 employees, excluding independent contractors), beginning August 30, 2018, new regulations provide several different types of safe harbor warnings. Although no one is technically required to use the safe harbor standards, doing so creates a presumption of a clear and reasonable warning. Any decision whether to notify tenants or others must be made by the landlord. However, because of uncertainties regarding Proposition 65, it would appear prudent to notify tenants if the property contains a significant level of a listed chemical such as asbestos, lead or pesticides, or there is an enclosed garage, and to take advantage of the safe harbor warnings. Under the new provisions, warnings must be more specific and must mention at least one listed chemical by name. Depending on the warning, it might be required to include a yellow triangle with an exclamation point and the word WARNING in bold, all caps, along with a specific web site address for each different type warning. For example, an enclosed parking facility warning will read as follows: WARNING: Breathing the air in this parking garage can expose you to chemicals including carbon monoxide and gasoline or diesel engine exhaust, which are known to the State of California to cause cancer and birth defects or other reproductive harm. Do not stay in this area longer than necessary. For more information go to ca.gov/parking. A list of warning signs is available at the Office of Environmental Health Hazard Assessment site. See C.A.R. s Proposition 65 Warnings Q&A for more information. zipform Standard Desktop Version is offered as a free member benefit for users who prefer the desktop version. Internet connection is not required to use this version. Important Update Required A new version of zipform Standard, our desktop version, is now available. The next time you sign in to your zipform Standard account, you may be prompted to download the most current version. Please do so to ensure that you are able to take advantage of all the functions and features of zipform Standard, including the integration with electronic signatures. If you have already updated your software, you will not see the prompt to download the newest version of zipform Standard, and can continue to use the software without further action being required on your part. If you use the online version of zipform Plus this does not apply to you. zipformplus LIVE Training Class Date: Wednesday, September 19, 2018 Two Time Slots Available: 10:00AM 12:00PM and 1:00PM 3:00PM Location: Newport Beach Association of REALTORS Office RSVP: (949) NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE TWENTY

21 OCAR Annual Business Report dba Newport Beach Association of Realtors Profit & Loss December 31, 2017 MLS Association Building Total Income Dues Income $ - $ 252,156 $ - $ 252,156 MLS Income $ 733,476 $ 11,365 $ - $ 744,841 Education Income $ - $ 2,540 $ - $ 2,540 Events Income $ - $ 96,602 $ - $ 96,602 Realtor Store $ - $ 22,876 $ - $ 22,876 Other Income $ - $ 2,850 $ - $ 2,850 Monthly Rent $ - $ - $ 370,038 $ 370,038 Common Area Maintenance $ - $ - $ 44,010 $ 44,010 CAM Reimbursement $ - $ - $ 69 $ 69 Total Income $ 733,476 $ 388,389 $ 414,117 $ 1,535,982 Expenses Cost of Goods Sold $ 6,409 $ 10,766 $ - $ 17,175 Gross Profit $ 727,068 $ 377,623 $ 414,117 $ 1,518,807 Advertising/Marketing/Promotional $ - $ 1,575 $ - $ 1,575 Payroll Expenses $ 363,535 $ 306,867 $ - $ 670,402 Operating Expenses $ 46,046 $ 45,840 $ 254,100 $ 345,985 MLS Expenses $ 349,344 $ 181 $ - $ 349,525 Travel Expenses $ 7,537 $ 50,318 $ - $ 57,854 Education Expenses $ - $ 1,380 $ - $ 1,380 Event Expenses $ 27,193 $ 55,166 $ - $ 82,360 Charity Expenses $ - $ 3,537 $ - $ 3,537 Office/General Administrative Expenses $ 39,466 $ 32,569 $ - $ 72,035 Total Expenses $ 833,121 $ 497,433 $ 254,100 $ 1,584,653 Net Operating Income (Loss) $ (106,053) $ (119,810) $ 160,017 $ (65,846) Other Income (Expense) $ 65 $ 2,335 $ (124,282) $ (121,881) Net Income $ (105,988) $ (117,475) $ 35,736 $ (187,727) Balance Sheet December 31, 2017 MLS Association Building Total Assets Cash $ 216,288 $ 354,980 $ 155,268 $ 726,536 Accounts Receivable $ - $ 104,316 - $ 104,316 Inventory $ 4,218 $ 11,129 $ - $ 15,347 Prepaid Expenses & Deposits $ 40,987 $ 17,440 $ 30,769 $ 89,196 Total Current Assets $ 261,493 $ 487,865 $ 186,037 $ 935,395 Net Fixed Assets $ - $ 39,975 $ 3,405,005 $ 3,444,980 Investments $ - $ 1,000 $ - $ 1,000 Intercompany $ (270,676) $ (292,874) $ 563,550 $ - Total Assets $ (9,183) $ 235,966 $ 4,154,592 $ 4,381,375 Liabilities Current Liabilities Accounts Payable $ 175 $ 77,944 $ 21,581 $ 99,700 CAR/NAR Payable $ 159,192 Deferred Revenue $ 332,132 $ 161,650 $ - $ 493,782 Other Current Liabilities $ 69 $ 29,281 $ 33,842 $ 63,192 Long Term Liabilities $ 1,000 $ 2,827,243 $ 2,828,243 Total Liabilities $ 333,376 $ 428,067 $ 2,882,666 $ 3,644,109 Equity Equity Balance $ (139,728) $ (166,757) $ 1,233,738 $ 927,253 Net Revenue over Expenditure $ (202,831) $ (25,344) $ 38,188 $ (189,987) Total Equity $ (342,559) $ (192,101) $ 1,271,926 $ 737,266 Total Liabilities & Equity $ (9,183) $ 235,966 $ 4,154,592 $ 4,381,375 NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE TWENTY-ONE

22 NEWPORT BEACH ASSOCIATION OF REALTORS EVERY THURSDAY 11:00 am - 2:00 pm Broker Open House, areas 9, 11, 12, EVERY FRIDAY 11:00 am - 2:00 pm Broker Open House, areas 1-8, 10, Wed, Aug 1st 9:00 AM Affiliate Committee Meeting Wed, Aug 1st 4:00 6:00 PM Hot August Nights Cocktail Mixer Wed, Aug 15th 8:30 AM Broker License Prep Seminar Wed, Aug 22nd CRMLS Matrix LIVE Training 10:00am - 11:00am Engaging Clients with Matrix 11:00am - 12:00pm Creating a CMA in Matrix 1:00pm -2:00pm Proxio Pro 2:00pm - 3:00pm HomeSnap Pro Thu, Aug 23rd 9:00 AM 45 Hour License Renewal Seminar NEWPORT BEACH ASSOCIATION OF REALTORS AUGUST TWO THOUSAND-EIGHTEEN PAGE TWENTY-SIX