You are currently browsing the monthly archive for July 2018.
It is important for REALTORS® to learn about Propositions 13, 60 and 90 and two propositions that will be on the November ballot, Propositions 5 and 10, because they are the first person consumers go to for information about housing.
Approved by California voters in 1978, Proposition 13 caps the maximum amount of the assessed value of real property to one percent and limits property tax increases to no more than 2 percent per year as long as the property is not sold.
Propositions 60 and 90 stem from Prop 13. Prop 60 allows anyone over the age of 55 to transfer the base year value of their original residence to any replacement residence of equal or lesser value in the same county. Prop 90 extends these provisions to a replacement residence in a different county that accepts Prop 90 transfers. Homeowners must buy the replacement home within two years of selling the existing one, or vice versa.
Propositions 60/90 are incentives for senior homeowners to downsize and move into smaller, less expensive homes without being penalized with a higher property tax. The counties that accept Prop 90 transfers are Alameda, El Dorado, Los Angeles, Orange, Riverside, Santa Clara, San Bernardino, San Diego, San Mateo, Tuolumne and Ventura. El Dorado is dropping out effective November 7.
Proposition 5 is the California Association of REALTORS®’s Property Tax Fairness Initiative and would allow seniors to transfer their tax assessments from their prior home to their new home anywhere in the state and as many times as they wish. The transferred property tax benefit would apply through a proportionate formula whether or not a senior homebuyer purchases up or down in price. C.A.R. estimates the passage of Prop 5 would provide more liquidity in the market and free up 43,000 transactions.
Those opposed to Prop 5 claim it would mean a $150 million a year in lost revenue to the state budget, but according to REALTORS® this analysis does not take into account the property tax increases that might occur when the original homes are sold and assessed at a higher tax rate; nor does it take into account the economic benefits of having someone move into a new community.
Proposition 10 would repeal the Costa-Hawkins Rental Housing Act, which limits the use of rent control in California and allows landlords to increase rent prices to market rates when a tenant moves out. This proposition would allow local governments to adopt rent control ordinances and rules on how much landlords can charge tenants for renting apartments and houses. Cities will be free to impose rent control on any residential unit, including single-family homes and new construction. This proposition would lock in low rents and dissuade investors from building much needed housing in the state.
C.A.R. is supporting Prop 5 because it would be good for housing, and actively opposing Prop 10 because it would hurt housing.
The National Association of REALTORS® (NAR) is warning its members about a phishing scam they may receive in an email appearing to be under the REALTOR® Party banner. The scam email is asking to help “Jim” with a financial donation. Please be aware that the email is not from the REALTOR® Party or NAR. Please delete this email if you see it.
NAR will never solicit donations for personal or individual charities. All donations go through the REALTORS® Relief Foundation.
Anyone who received the email or sent money to the link in the email should file a complaint with the FBI’s Internet Crime Complaint Center at http://www.ic3.gov.
NAR urges its members and state and local REALTOR® associations to be on high alert for email and online fraud.
The California Bureau of Real Estate (CalBRE) officially became the California Department of Real Estate (DRE) effective July 1, 2018. The DRE has been re-established after five years as a bureau under the Department of Consumer Affairs.
All telephone, email and website contacts will remain the same. Licensees can use the department’s eLicensing system to reprint license certificates reflecting the change to a department, but will not receive new pocket cards unless their license is being renewed.
Licensees will not be required to change their business cards or marketing materials to reflect the change, as long as their license numbers remain on those materials.
To learn more, visit http://www.dre.ca.gov.
“No one is 100 percent secure when it comes to cyber security. We just have to do our best keeping our private information confidential and secure when doing business,” said Nicholas McGowan at the Cyber Security Lunch and Learn at the Silicon Valley Association of REALTORS® this week. McGowan is a sergeant at the Petaluma Police Department, a member of the San Francisco Crimes Task Force and the Bay Area chapter of the High Technology Crime Investigators Association. He also has established Brainwave Hack Consulting Services.
Cyber security is a concern for anyone who connects to the internet. “A hacker just has to be right once,” said McGowan, and this is why you have to be diligent about keeping your private information secure. Cyber criminals seek to identify and retrieve passwords, dental and medical records, bank accounts, credit cards and government identification.
McGowan said your password is your first level of defense from hackers, so you need a most secure password for your email and other important accounts. McGowan suggests a password with no less than five and preferably 12 characters and resetting your password every few months.
Use anti-virus software and make sure it is updated. The best protection is to have a multifactor authentication.
In offices or even your home, McGowan said it is not safe to have a shared network because it is vulnerable to being hacked. Business emails can be compromised. Have your own personal or business network and a separate network for guests.
Stay away from open networks in airports, malls and coffee places. “They are a cyber criminal’s dream,” said McGowan.
Phishing with links in emails is rampant. Links can contain viruses which could be a source of ransomware. Ransomware is only bad if you run it, so do not click on a link, even if the email purportedly comes from a credit card company or bank. Go directly to the company’s website and access the information from there.
“If it doesn’t feel right, trust your gut. Never click on a link,” said McGowan.
Silicon Valley Association of REALTORS® says ... 