Official Publication of the Newport Beach Association of REALTORS. The. Coastal. News REALTOR 2018 V23 N11 NOVEMBER

Transcription

1 The Coastal REALTOR News NOVEMBER Official Publication of the Newport Beach Association of REALTORS 2018 V23 N11 NEWPORT BEACH ASSOCIATION OF REALTORS

2 President s Message FIDUCIARY DUTIES OF A DUAL AGENT Robert Milliken 2018 President I thought I d conduct an update and a reminder of the fiduciary duties of a dual agent. Last month Gov Hutchinson (C.A.R. Assistant General Counsel) discussed the new bills that will detail what a dual agent may not reveal to either party. This is extremely important to be aware of. Who is a dual agent, and to whom does a dual agent owe fiduciary duties? An agent becomes a dual agent if he or she personally represents both parties to a single transaction. Per the recent case of Horiike v. Coldwell Banker, an individual agent is also a dual agent if his or her brokerage represents both sides of a transaction. When agents from the same brokerage are working with different parties to a single transaction, each agent is considered a dual agent, even if each individual agent communicates and works exclusively with a single party. A dual agent owes equal fiduciary duties to both parties to a transaction. What is the extent of a dual agent s fiduciary duty? A real estate agent s fiduciary duty to clients requires the highest good faith and undivided service and loyalty. This can be a difficult standard to navigate for dual agents, whose service and loyalty are inherently divided between two parties with diverging interests. In the case of Field v. Century 21 Klowden-Forness Realty the Court stated that an agent s fiduciary duty may require investigation and disclosure of unknown material facts that might be reasonably discovered. Unfortunately, there are no clear and easy guidelines for meeting this obligation. Dual agents must often make difficult decisions in balancing clients interests. However, dual agents can lessen the likelihood of breaching fiduciary duties by being upfront with their clients about the nature of their duties to each party. What forms should a dual agent provide to clarify the nature of agency relationships? Both buyer and seller should be provided with the Disclosure Regarding Real Estate Agency Relationships (C.A.R. Form AD). The AD provides a description of the different types of agency relationships that can exist in a transaction, including dual agency. Both buyer and seller should also be provided with a confirmation of real estate agency relationships (within Paragraph 2B of the RPA or in C.A.R. Form AC). That confirms which types of agency relationships will exist in the specific transaction at hand. If 2B of the RPA is incomplete or completed inaccurately, C.A.R. Form AC may be used. When both the agency disclosure and the agency confirmation are provided in a dual agency situation, the agent s clients are put on notice that the agent represents both sides and owes each side fiduciary duties. The AD provides basic ground rules for dual agency, stating that a dual agent may not, without express consent, disclose to the buyer that the seller would accept lower price, or to the seller that the buyer would pay more. Parties that receive this disclosure in advance have less of a basis for lawsuits alleging breach of fiduciary duty by a dual agent. Legislation affecting dual agents. Assembly Bills 1289 and 2884(2018), effective January 1, 2019, provide that a dual agent may not reveal to either party facts relating to the financial position, motivations, bargaining position or other personal information that may impact price, in addition to the restrictions already mentioned. Bob

3 Contents 2019 Installation Breakfast PAGE FOUR Fall Housing Forecast Legal Update PAGE FOURTEEN PAGE EIGHTEEN Message from the President PAGE TWO NEWPORT BEACH ASSOCIATION OF REALTORS New Members PAGE SIXTEEN Annual Charity Fashion Show Photos PAGES SIX-EIGHT 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 NOVEMBER TWO THOUSAND-EIGHTEEN PAGE THREE

4 Newport Beach Association of REALTORS 2019 Installation Breakfast Thursday, December 6, :00 a.m. - 10:30 a.m. The Pacific Club 4110 MacArthur Blvd., Newport Beach $45 per person includes full breakfast and valet or self-parking Platinum Sponsor: 2019 Officers and Directors: President - Cari Young Vice President - Rob Norquist Treasurer - Kevin Kubiak Secretary - Bob Braun Brian Gibney, Krista McIntosh, Bob Milliken, Robert Pfeif, Sue Podany, Scott Singer and Jennifer Wong Please register me to attend the 2019 Installation Breakfast Reservations are $45 per person or $360 for table of eight. Reservations Required; Seating is limited. Reservations are non-refundable. Tickets at the door $60 per person on availability basis. Enclosed is my check in the amount of $ for tickets. Names: Company: Phone: Please charge my Visa/MC # : Expiration Date: CVC #: Signature: Please mail, fax, or to: Kimberly Foreman NBAR, 401 Old Newport Blvd., Ste 100, Newport Beach, CA or Fax: (949) kim@nbaor.com NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE FOUR

5 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

6 Annual Charity Fashion Show The Fashion Show held on October 17, 2018 was a great success. The luncheon proceeds will benefit Orange County Youth Sports Foundation. The event was held at the Fashion Island Hotel and was full of real estate and affiliate individuals waiting to see all the goodies in store. Special thanks to Fashion Show Chairmen Martha Gewertz, Lawyers Title, Mike Perisi, Mariners Escrow and Don Abrams of Abrams Coastal Properties who all worked very hard for the event to be the success it was. We had a tremendous amount of support from the local businesses and from our Affiliate membership. Special thanks are also in order to our Sponsors: Platinum Sponsors: Abrams Coastal Properties, Coldwell Banker Previews International, Compass, Granite Escrow, Mariners Escrow, Pacific Sotheby s Int Realty, Surterre Properties, and Villa Real Estate Gold Sponsors: Freedom Escrow, Metro Estates and US Bank Silver Sponsor: CRMLS Table Sponsors: Arbor Real Estate, Back Bay Funding, Coast Cities Escrow, Douglas Elliman Real Estate, Orange County Youth Sports Foundation, Prominent Escrow and REMAX Fine Homes. Centerpieces were provided by Homestead Escrow. Table Favors were provided by Key Escrow. DJ/ MC Services by Les Akers of Akers Entertainment. Photography services provided by Ed Melizza Photography. Special thanks to Carol Dobbs, CDobbs for providing the fabulous fashions which were modeled by Landon Ball, Barclay Butera Properties; Madison Beckley, Surterre Properties; Sean Casey, Villa Real Estate;.Julian Channels, Coldwell Banker; Marilyn Christian, Pacific Sotheby s Int Realty; Alexis Devries, REMAX Fine Homes; Katie Dickerson, Compass; Alison Eastman, Compass; Tami MacDonald, Villa Real Estate; Dylan Mason, Compass; Bob Milliken, Surterre Properties; Demetria Moore, Douglas Elliman Real Estate; Lori Petersen, Arbor Real Estate; Nichole Story, Coldwell Banker; and Marcy Weinstein, Surterre Properties. A very special thank you to Jennifer Blair Smith for styling the ladies hair and Delphine Channels of Butterfly Me for providing final touches through makeup. The live and silent auctions were a tremendous help in raising funds for this worthwhile cause. Thank you to all who contributed their time, energy, and contributions for these auctions. We look forward to another wonderful event in 2019! NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE SIX

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9 QUICK GUIDE Do Not Call Rules Telemarketing & Robocalls What Rules Govern Telemarketing Efforts by Real Estate Licensees? There are four primary laws: The FCC Telephone Consumer Protection Act; The FTC Telemarketing Sales Rules; California laws that govern unsolicited and unwanted telephone solicitations; and The California Public Utility Code that only regulates robocalls. A Real Estate Broker Should Establish Telemarketing Office Policies to Comply with these Rules as Follows: Have a written policy, available upon demand, for maintaining a do-not-call list; Train telemarketing persons on the existence and use of the federal do-not-call list; Prohibit your telemarketers from initiating telephone solicitations to those on the do-not-call list; Your telemarketers can call those on the do-not-call list if there is (a) written permission; or (b) an established business relationship or (c) a personal relationship; Whoever requests not to be called must be placed on a company-specific do-not-call list within 30 days of the request and the request must be honored for 5 years; Your telemarketer must provide the called party with the name, telephone number and address of the person or entity on whose behalf the call is being made; Calls should not be made before 8 a.m. or after 9 p.m. (local time at the called party s location); An unanswered call should not be disconnected prior to at least 15 seconds or four rings; To Avoid Liability when A Person on the Do-Not-Call List is Mistakenly Called, You Must Meet these Requirements: 1. The office policy provisions above have been established; 2. The broker maintains a list of telephone numbers that may not be contacted; 3. The broker maintains a process to prevent calls to those on the do-not-call list and maintains a version of the national do-not-call registry obtained from the administrator of the registry no more than 31 days prior to the date any call is made, and provides records documenting this process; AND 4. The broker maintains a process to ensure that (a) the do-not-call database is not used for any purpose other than compliance with state and federal law; and (b) the cost of accessing the do-not-call database is not shared with other companies. Robocalls Rules Telemarketers may not initiate robocalls without the express written consent of the called party. Robocalls must: (a) be made between 9 a.m. and 9 p.m. in the time zone of the intended recipient of the call; (b) be introduced by a live person; and (c) get the consent of the person called. The only applicable exceptions are for robocalls to a known party, business party, customer, or one who has agreed beforehand to receive robocalls. Deceptive or Abusive Practices Deceptive and abusive telemarketing acts or practices are prohibited. Copyright, 2018 California Association of REALTORS. August 16, 2018 (revised). NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE NINE

10 Meet and Greet with Assemblyman Matthew Harper! Meet and Greet with Congressman Dana Rohrabacher! 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 NOVEMBER TWO THOUSAND-EIGHTEEN PAGE TEN

11 Irvine NOW 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. New homes from the low $700,000s 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. (10/18)

12 Breakfast Briefing Featuring Guest Speaker: Steve High Villa Real Estate Wednesday, November 7, :45 Registration/Breakfast 9:00 AM Presentation at Newport Beach Association of REALTORS Offices 401 Old Newport Blvd., Suite 100, Newport Beach Breakfast Sponsored By: Topics of Presentation Include: Background and History of Career Leading to Success Areas To Focus On In Business His Take on the Market What He Sees for the Future of Real Estate How To Keep Motivated FREE for Newport Beach AOR Members $25 for all others RSVP is Required as Seating is Limited Register by calling: (949) or by NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE TWELVE

13 TRUSTED, TRIED & TRUE 35 Years Experience in Common Sense Lending When Experience Matters Stated Income Asset Depletion Debt Coverage Lending Cash Flow Analysis Over $2.75 Billion in Personal Residential Loans Funded Al Hensling ext.110 Direct: Fax: NMLS #: State License # NMLS #: 1942

14 Fall Housing Forecast Steven Thomas of ReportsonHousing.com spoke to the membership on Wednesday, October 24th at the Newport Beach Association office. Steven s report was eye opening and his forecast was something real estate broker/agents needed. POOF! Crumbs in the Lower Ranges NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE FOURTEEN

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16 DESIGNATED REALTOR MEMBERSHIP Ian E. Carlson Ian Carlson Marc Levitt Marc Levitt Ralph Y. Liu InvestorsAlly, Inc. REALTOR Membership Argyros, Stephanie (Arnel Estates) Bobay, Chris (Harbor Realty) Bolen, Matthew (Trider Real Estate) Burrill, John (Compass) Carlson, (Surterre Properties) Cormier, Michelle (Compass) Dadant, Sundari (D. E. Properties) DeVries, Alexis (Re/Max Fine Homes) Janes, Jacque (Coldwell Banker Res.) Kleen, Amanda (Pacific Sotheby s) LaFerrara, Aryn (Sailhouse Real Estate) Morris, Brigit (Villa Real Estate) Ortiz, Kevin (A1 Realty) Pinelli, Kevin (Compass) Raiger, David (Surterre Properties) Roll, Margaret (Compass) Rose, Pamela (Surterre Properties) Taormina, Michael (Compass) Thomason II, Mat (Pacific Sotheby s) MEMBER TRANSFERS Bradley Barker from Pacific Sotheby s to Compass William Hobbs from McMonigle Grp. to Pacific Sotheby s Steven Lambert from Coastal Life Realty Grp. to Nook Real Estate Heather Martin from Keller Williams to McMonigle Group Donald Sheetz from Coldwell Banker Res. to Donald Sheetz, Broker Mark Stanga from Surterre Prop. to The Agency Welcome New Members NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE SIXTEEN

17 NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER SEPTEMBER TWO THOUSAND-SEVENTEEN THOUSAND-EIGHTEEN PAGE SEVENTEEN PAGE SEVENTTEN

18 Legal Update October 2018 Among the bills the Governor has signed from the current legislative session, several impact REALTORS and their practice. C.A.R. Sponsored RE Clean-Up Legislation: AB 1289 and AB 2884 The C.A.R. sponsored clean-up legislation, signed by the Governor on September 29, 2018, updates many of the laws affecting agents and brokers. All of the changes in the clean-up law become effective on January 1, Below we highlight what is the primary impact of the clean-up legislation for REALTORS which will be in the agency disclosure process. New Agency Disclosure Format Currently, the Listing Agent (the seller s agent) is required to provide an agency disclosure to the seller when taking a listing, and the Selling Agent (the buyer s agent usually) is required to give an agency disclosure to the buyer when writing the offer and an agency disclosure to the seller when the offer is presented. Although this process may have made a good deal of sense in 1986 when the law was first, it is one of the most common areas of confusion for real estate agents and their clients, and generates many calls to the Legal Hot Line. Beginning January 1, 2019, the agency process will be simplified: 1. The Seller s Agent (formerly the Listing Agent) will be required to give an agency disclosure to the seller when taking a listing. 2. The Buyer s Agent (formerly the Selling Agent) will be required to give an agency disclosure to the buyer when writing and offer. The 3rd agency from the Buyer s Agent to the seller will no longer be required. 3. The confirmation language in the purchase contracts will be modified to reflect the change in the nomenclature and to clarify that the brokerage may use the services of both salespersons and broker associates. The C.A.R. standard forms will be modified for January release to reflect the new statutory requirements. New Q&A 2019 Clean Up Law Changes For more detail on the impact of the clean-up law, there is a new Q&A entitled 2019 Clean Up Law Changes which explains all facets of the new law. Civil Liability Sexual Harassment Existing law allows a client to sue an agent for sexual harassment. This new law lowers the bar for bringing such a claim. It provides that even if a business, service, or professional relationship does not presently exist (as is required in existing law), a real estate agent, among other persons (an investor is now included) may be liable for sexual harassment when he or she holds him or herself out as being able to help the plaintiff establish a business, service, or professional relationship with the defendant or a third party. The new law also eliminates the requirement that the plaintiff prove there is an inability by the plaintiff to easily terminate the relationship. Senate Bill 224 is codified as Civil Code 51.9, and Government Code and Effective January 1, Sexual Harassment Training Requirements Existing law requires employers with 50 or more employees to provide at least 2 hours of prescribed training and education regarding sexual harassment, abusive conduct, and harassment based upon gender, to all supervisory employees within 6 months of their assumption of a supervisory position and once every 2 years. This new law lowers the threshold so that an employer with 5 or more employees, including temporary or seasonal employees must provide at least 2 hours of sexual harassment training to all supervisory employees and at least one hour of sexual harassment training to all nonsupervisory employees by January 1, 2020, and once every 2 years thereafter. Although most brokerages retain salespersons and broker associates as independent contractors, a brokerage employing 5 or more non-licensed assistants could be subject to these new requirements. This law also requires the Department of Fair Employment and Housing to develop or obtain 1-hour and 2-hour online training courses and informational posters on the prevention of sexual harassment in the workplace and to post them on the department s Internet Web site. Senate Bill 1343 is codified as Government Code and Effective January 1, Compliance deadline is January 1, Landlord Must Accept Rent from Third Parties Presently landlords often refuse to accept rent payment from anyone but the tenant since doing so may create an unintended tenancy. This new law requires a landlord to accept rent from a third party when the third-party signs an acknowledgement. Specifically, this new law: o Requires a landlord or landlord s agent to allow a tenant to pay rent through a third party when the third party provides a signed acknowledgment stating that they are not currently a tenant of the premises and that acceptance of the rent payment does not create a new tenancy with the third party. o Specifies the language of a form acknowledgment that landlords may, but are not required to, provide for use by third parties when rent is tendered to a landlord on behalf of a tenant. Clarifies that none of these provisions shall be construed to require a landlord or landlord s agent to enter into a contract in connection with a federal, state, or local housing assistance program, including, but not limited to, the federal housing assistance voucher program under Section 8. o Clarifies that none of the above provisions enlarge or diminish a landlord s or landlord s agent s legal right to terminate a tenancy, nor are intended to extend the due date for any rent payment or require a landlord or landlord s agent to accept tender of rent beyond the expiration of the 3-day period to pay or quit. o Provides that a waiver of these provisions is contrary to public policy and is void and unenforceable Here is the simple form that a landlord may require a third-party payor to sign as a condition of accepting rent: NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-SEVENTEEN PAGE EIGHTTEEN

19 I, [insert name of third party], state as follows: I am not currently a tenant of the premises located at [insert address of premises]. I acknowledge that acceptance of the rent payment I am offering for the premises does not create a new tenancy. (signature of third party) Assembly Bill 2219 codified as an amendment to Civil Code Effective January 1, conversion to condominiums to be sold to the public after January 1, 2019, must have the required inspection conducted prior to the first close of escrow of a separate interest in the project. The inspection report and written confirmation by the inspector that any recommended repairs or replacements have been completed to be submitted to, among others, the Department of Real Estate. C.A.R. is working with the DRE Subdivision section to amend the Condominium Conversion Subdivision Purchase Agreement (CCSPA) (which was developed at the request of, and previously approved by, the DRE for use with condominium conversions) to meet this obligation. rent fully furnished. This amount shall not be adjusted for any other good or service, including without limitation gardening or utilities, currently or formerly provided in connection with the lease. This new law makes it illegal to evict a tenant during a declared state of emergency or any extension and offer to rent to another person at a higher price, except for cause such as 1) non-payment of rent, 2) breach of covenant, 3) lease termination, 4) improper subletting, waste, nuisance or illegal use, or 5) as otherwise permitted by Code of Civil Procedure Inspection of Decks, Balconies, Stairways, and Walkways This law requires that buildings with 3 or more multifamily dwelling units with decks, balconies, stairways, and walkways must be inspected by a properly licensed person by January 1, 2025, and a subsequent inspection must be done every 6 years. The owner would have to make repairs if the inspector found that the decks or balconies needed repair. All repair and replacement work shall be performed by a qualified and licensed contractor. A permit for the repairs must be applied for within 120 days of receipt of the inspection report, and the owner has 120 days more to complete the repairs. If the inspection reveals conditions that pose an immediate hazard to the safety of the occupants, the inspection report must be delivered to the owner of the building within 15 days and emergency preventive measures must be performed immediately with notice given to the local enforcement agency. Local enforcement agencies may recover enforcement costs associated with these requirements. The local enforcement agency is required to send a 30-day corrective notice to the owner of the building if repairs are not completed on time. The law provides for civil penalties and liens against the property for the owner of the building who fails to comply with these provisions. A landlord is authorized to enter the dwelling unit to comply with the requirements. Common interest developments are exempted. However, any buildings proposed for Senate Bill 721 is codified as Civil Code 1954 and Health and Safety Code et seq. Effective January 1, Landlord Tenant: Price Gouging and Eviction During a Declared Emergency This new law retains the 10% maximum rental price increase during declared state of emergencies, and additionally: Expands the scope of criminal price gouging by including rental housing that was not on the market at the time of the proclamation or declaration of emergency. And defines the rental price for purposes of the crime of rent gouging as: For housing rented at the time of the proclamation or declaration of emergency, the actual rental price paid by the tenant. For housing not rented at the time of the declaration or proclamation, but rented, or offered for rent, within one year prior to the proclamation or declaration of emergency, the most recent rental price offered before the proclamation or declaration of emergency. This amount may be increased by 5% if the housing was previously rented or offered for rent unfurnished, and it is now being offered for rent fully furnished. This amount shall not be adjusted for any other good or service, including without limitation gardening or utilities, currently or formerly provided in connection with the lease; For housing not rented, or not offered for rent, within one year prior to the proclamation or declaration of emergency, 160% of the Fair Market Rent established by the US Department of Housing and Urban Development. This amount may be increased by 5% if the housing is offered for The new law allows a greater than 10% rental price increase if directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term. The new law clarifies that it remains in force during the state of emergency or any extension and that it applies to mobile homes. It is not a defense to a prosecution that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services (except with respect to furniture), or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant. Applicable beyond counties with declared state of emergency: Under existing law, although a state of emergency is declared in regard to a specific county, Attorney General Anthony Becerra has stated that The statute does not restrict its protection to a city or county where the emergency or disaster is located. It is intended to prevent price gouging anywhere in the state where there is increased consumer demand as a result of the declared emergency. For example, if a fire in San Diego County causes residents to evacuate to neighboring Imperial County, hotels in Imperial County may not raise rates by more than 10% to take advantage of the increase in demand for lodging. See FAQs on Price Gouging. Assembly Bill 1919 is codified as Penal Code 396 and Government Code Effective January 1, NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE NINETEEN

20 NAR Required Code of Ethics Training given by Joel Carlson and sponsored by Bri Joy, Homestead Escrow Commercial/industrial property management and consulting services throughout Southern California. COMMERCIAL/INDUSTRIAL PROPERTY MANAGEMENT CONSULTING NO ASSIGNMENT TOO LARGE OR TOO SMALL 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 SEPTEMBER TWO THOUSAND-EIGHTEEN PAGE EIGHTEEN

21 N.A.R. s Ethics Requirement Deadline Coming Soon! Ethics Required by N.A.R. Every Two Years! Get compliant quickly by attending this Ethics training class! Live Class: Wednesday, November 28; 9:00AM-12:00PM Location: Newport Beach Association Office 401 Old Newport Blvd., Suite 100, Newport Beach Instructor: Joel Carlson, CREC, DREI Ethics Topics Covered Include: Article 17, Breaking Down the Three Major Sections of the Code, Professional Standards Committees, NAR Ethics vs. DRE Ethics, NAR Ethics vs. California BP Code & 10177, and Examples of Ethics hearing outcomes. FREE for NBAOR Members; All others $20 RSVP: (949) Deadline for completion of NAR s Ethics is December 31, 2018 NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER 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, NOVEMBER EVERY FRIDAY 11:00 am - 2:00 pm Broker Open House, areas 1-8, 10, Wed, Nov 7th 9:00 AM Affiliate Committee Meeting Wed, Nov 7th 9:00 AM Breakfast Briefing with Steve High Thu, Nov 8th 9:00 AM Gov t/political Affairs Committee Meeting Mon, Nov 12th Association Office Closed Wed, Nov 14th 8:30 AM New Member Orientation Wed, Nov 14th 9:30 AM Young Professional Network Meeting Wed, Nov 14th 11:00 AM Finance Committee Meeting Thu, Nov 15th 10:00 AM Board of Directors Meeting Thu, Nov 22nd Association Office Closed Fri, Nov 23rd Association Office Closed Mon, Nov 26th CRMLS Matrix Training 10:00am - 11:00am Agent Essentials 11:00am - 12:00pm Matrix Time-Saving Tips 1:00pm - 2:00pm Remine 2:00pm - 3:00pm The Advantages of Your CRMLS Benefits Wed, Nov 28th 9:00 AM LIVE Code of Ethics Class (Required by NAR) NEWPORT BEACH ASSOCIATION OF REALTORS NOVEMBER TWO THOUSAND-EIGHTEEN PAGE TWENTY-TWO