California Brokers Must Carry Workers’ Compensation for Agents California real estate brokers are required by law to carry workers’ compensation insurance for their real estate agents, even when those agents are paid as independent contractors. This requirement applies to licensed…
In the late fall of 2024, the United States District Court for the Western District of Missouri granted final approval of the National Association of Realtor® (NAR) proposed settlement agreement. This agreement was to resolve class action claims related to…
VIDEO WEBINAR SUMMARY In today’s ever-evolving California real estate market, understanding current trends in Errors & Omissions (E&O) claims is critical for real estate agents and brokers looking to stay protected. In this informative webinar, Laura Prouse of CRES Insurance…
Selling or purchasing properties in fire-prone regions, such as Pacific Palisades and Altadena in Southern California that were damaged by fire, comes with unique challenges. Wildfire risks and/or damage caused by wildfire not only affect property value and buyer interest…
California Penal Code Section 396 discusses overpricing of goods and services following state of emergency or major disaster. Fire is included as an emergency under the Code section. The Code explains: “While the pricing of consumer goods and services is…
In the fast-paced, highly regulated world of real estate, brokers and agents are tasked with more than just facilitating transactions between buyers and sellers. One crucial responsibility that often gets overlooked is the need to document and preserve all forms…
More and more California property owners are confronted with individuals who have taken up habitation on their land and refuse to leave, called “squatters.” A squatter is a person who occupies real property without ownership rights or permission from the…
Short-term vacation rentals have been very popular in California the past ten (10) years or so. With such popularity, challenges arise for the property owner wishing to undertake a vacation rental business, and for the licensed real estate agent who…
An accessory dwelling unit (ADU) is a secondary housing unit on a single-family residential lot in California that is a separate and distinct living unit than the main residence. Many ADUs in California are rented out by the property owner…
In California, there are distinct differences between an accessory dwelling unit (ADU) and an accessory living quarter (ALQ). This article explains the differences. ADUs and ALQs increase the supply of independent and affordable housing. They provide additional income for a…
California has several new laws affecting real estate and housing coming into effect at various dates in 2024: Tenants’ Rights Assembly Bill 12 Landlords in California have been allowed to charge two months’ rent as a security deposit for unfurnished…
Having a new licensed real estate agent is exciting, yet challenging for the broker of record and the new licensee. Standard protocol for a new real estate licensee by any brokerage includes: 1. Verify that the new real estate licensee…
Property owners, property managers and real estate agents face a lot of hidden dangers from a risk management perspective in remodeling and repairing structures and maintaining and improving the property’s grounds. People that can assist the property owner, property manager…
This Risk Management Article covers changes to the June 2022 CAR forms and some anticipated December 2022 changes to the Residential Purchase Agreement. June 2022 changes Seller Possession After Close of Escrow The two June 2022 RPA changes apply to…
The California real estate market has experienced extremely low inventory, but things have started to normalize in recent weeks. In this webinar, attorney Mark Carlson from the Carlson Law Group, and Dave Miller, Regional Vice President of Fidelity National Home…
A subpoena is an order issued by either an attorney, court clerk, or a judge. Subpoenas in real estate are used to obtain records and information from people or entities who are not parties to a lawsuit. A subpoena usually…
The State of California enacted legislation on 2019 effecting homeowners beginning January 1, 2020 who place their homes on the market to sell. Any seller after construction of his or her home that has received a final governmental inspection report…
On May 12, 2021, the California Dept. of Public Health (CDPH) updated its guidance on open houses to allow in-person showings of properties, such as open houses. The guidance states that those holding open houses must follow the indoor capacity limits…
A landlord or his or her property manager in California at most can charge a potential tenant fifty- dollars and ninety-four cents ($50.94) as an application fee where the fee cannot exceed the actual cost for the application taking into…
Over the years, I have seen an increase in claims and litigation arising out of the way an escrow was handled ranging from wire fraud transfer of funds, false identities of parties to an escrow transaction, unrecorded liens and questionable…
In today’s competitive California real estate market, I have seen buyers attempt to obtain an edge on their competition by writing and sending letters to the sellers or landlord. These letters describe the buyers/tenants, their immediate family, and why they…
VIDEO WEBINAR SUMMARY The majority of real estate E&O lawsuits are a result of failures to disclose. In this webinar, Mark Carlson, attorney from Carlson Law Group and Dave Miller, Regional Vice President with Fidelity National Home Warranty,…
Video Summary Like many other industries, real estate has been significantly affected by COVID-19. Property management is one area in particular, which is experiencing much pandemic-related change. There’s no doubt the risks are much greater in this current…
When there is a legal dispute between the buyer and seller, you may be served with a deposition subpoena to produce documents. This is a normal procedure for obtaining documents when you or your real estate brokerage are not named…
Under California and federal law, it is illegal for a landlord or residential rental housing provider to discriminate against a person because of the person’s disability, religion, ethnicity, sexual orientation, race, marital status, religion, ancestry, or source of income for…
It’s important for real estate professionals to understand the implications of a cannabis business whether you’re representing the seller, buyer, or a tenant. (See our related post on property managers and cannabis businesses.) Your role isn’t to provide legal or…
Changes in California Law: Disclosure Requirements Flood Zones California’s legislature within the past year made the following findings and declaration: (a) In February 2017, several neighborhoods within the City of San Jose experienced severe flooding that forced the evacuation of…
In early October 2017, a series of 250 wildfires started burning throughout Northern California, bringing terror and destruction to the region. The wildfires broke out throughout Napa, Lake, Sonoma, Mendocino, Butte, and Solano Counties. These fires included the Tubbs Fire…
The California Senate Bill 442 was passed, signed by the Governor, and codified as Business and Professions Code, Section 7195, effective January 1, 2018. This Statute provides standards for new residential swimming pools and spas, or any remodeling of an…
It’s every property manager’s and property owner’s worst nightmare — when a tenant does malicious damage. This is why it’s important to know what the liabilities are, and what you can do to reduce your risk of a lawsuit. Not…
Document All Client Advisories about Third-Party Experts Do you advise your clients in writing to consult with third-party experts before closing? And if you do, do you document it in the client’s file? If you want to reduce your risk…
Seller carryback financing is when the seller of a given property acts as a lender for a buyer on the seller’s property. The end result is that the buyer signs a promissory note to the seller, for the amount of…
The vast majority of real estate agents and brokers are familiar with pre-printed purchase contracts for land such as the Residential Purchase Agreement and Deposit Receipt published by the California Association of Realtors® Form RPA-CA Rev. 11/14 (C.A.R. ©). However, …
Introduction - The Law and Primary Issue California Civil Code section 2079 sets forth the statutory duty of a real estate licensee in the State of California to both the buyer and the seller of a real estate transaction, whether…
Advising a client who is sight impaired or who cannot read or write in the English language Over the years as a real estate attorney in litigated and risk management inquiries, I have had to deal with situations where a…
A business that maintains records that include a customer’s name along with any one of the following: signature, social security number, address, telephone number, physical description, passport number, driver’s license number, insurance policy number, education, employment, employment history, bank account…
Business and Professions Code Section 10148 requires that a real estate licensee maintain his or her file for 3 years after the transaction closes or for 3 years after a listing if no transaction is consummated. Because some statutes of…
In recent months I have handled an increasing number of risk management inquiries for real estate agents and brokers on the issue of when does a real estate agent’s duties cease to the client. This question typically arises after closing…
Cyber crime targeting wire transfers is on the rise. Criminals have developed viruses that hack into email accounts of buyers, sellers, real estate agents and escrow companies. The malware records login information and then sits undetectable by commercial anti-virus software…
Throughout California, there are many local real estate associations that provide an electronic service used by real estate agents and brokers called the “multiple listing service” (MLS). This service allows members of a given local real estate association to see…
The duty to disclose all that is material affecting price paid or desirability Over the years, I frequently come across risk management inquiries involving whether a seller and his or her listing agent need to disclose prior property inspection reports…
California Civil Code section 1088 Many real estate agents are not familiar with the provisions of California Civil Code section 1088. I am quite familiar with this provision having defended many real estate licenses over the years for placing inaccurate…
The 1990 “Americans with Disabilities Act” (hereinafter “ADA”) is a federal civil rights law designed to prevent discrimination based upon one’s disability. Disabilities covered, but not limited to those of hearing, mobility, and sight. Discrimination based upon one’s “disability” is…
The best way to prevent a claim or lawsuit against yourself as a licensed professional is to memorialize what was discussed in writing with your client starting with the log notes in your transaction file and then followed up with…
With the resurgence of the California real estate market, many of my real estate clients have diversified their business and have become involved in real property management. In California, a property manager is a person who takes care of the…
Many times I have consulted with my real estate clients as to the advantages and disadvantages of binding arbitration to resolve a dispute concerning real property as opposed to resolving the dispute in a litigated case in a California court…
Invariably I have come across disputes in real estate sales, where a cancellation of contract, release of deposit and cancellation of escrow on a California Association of Realtors® form CC has been sent to either the listing or selling agent…
California Civil Code section 660 defines a “fixture” as follows: “A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines, or shrubs; or imbedded in it,…
California’s Department of Fair Employment and Housing (DFEH) maintains the authority to investigate complaints of discrimination in the areas of employment, housing, public accommodations and hate violence. Many persons believe they have been treated unfairly or harassed in employment opportunities,…
Over the years of handling risk management matters, I invariably see disputes where the real estate agent who was not the listing or selling agent on a closed transaction makes a claim for real estate commissions claiming that he or…
Brokers and escrow officers, like other professionals, use phones and e mail as their main mode of communication and by doing so they are exposed to data breaches. In the last year data breaches became more prevalent in real estate…
When problems arise after close of an escrow for a particular real property, the listing and selling agent are typically contacted by an attorney for either the seller or buyer or both of them. This raises a concern for the…
How well does a typical real estate agent know his or her client? Good question. In the vast majority of the situations when a real estate agent transacts as a listing, selling or dual agent, the answer is “not very…
Agreements between agents to share commissions may be enforceable even where the agents are affiliated with different brokers. In a new case, Sanowicz v. Bacal, (2015) 234 Cal.App.4th 1027, two agents who were both affiliated with the same broker entered…
The call may seem very innocent. A person calls about the availability of an 800-square-foot apartment advertised by your company in the local newspaper. When the caller asks about whether her companion Labrador retriever is allowed in the unit, you…
Health care practitioners for years have documented evidence that animals, particularly dogs can benefit impaired people. Examples are seeing-eye dogs, dogs for the hearing impaired and most recently, “companion” dogs that provide therapeutic benefits to people who are emotionally or…
CAR has announced that the new RPA will be released in November of 2014. There are several substantive changes to the form. However, there are six (6) changes that will concern real estate agents and brokers the most: 1. All…
In recent months, I have handled an increasing number of risk management inquiries for real estate agents and brokers who are property managers for property owners who rent out residential properties. The most common disagreement between landlords and tenants for…
If being a real estate broker or salesperson acting in a dual agent capacity was not already risky enough, the California Court of Appeal just made it even more dicey. Real estate brokers and associate licensees know that the risk…
Issue – Solar Power Systems are Fixtures When we think of fixtures that are included in the sale of a property, it is likely that some Brokers and Agents have not considered the application of the modern day solar power…
Every single person autonomously employed in the state of California is required to be covered by workers’ compensation coverage by law. And as some real estate businesses and independent brokers are discovering, attempting to fly under the radar of the…
