NEW ADVERTISING REGULATIONS FOR REALTORS®
New Rules Beginning Jan. 1, 2018
REALTORS® should be aware that there are significant changes in state law regarding the information that must be on all materials relating to real estate solicitation beginning with the New Year.
This applies to just about everything, including business cards, stationery, advertising flyers, all forms of advertisements, including print, electronic or television, and “for sale” rent, lease, open house or directional signs
REALTORS® should begin now to order new materials in order to comply with the new law.
For a complete guide to the new advertising regulations, visit: http://www.car.org/riskmanagement/tools/advertising?highlight=advertising
CITY OF ESCONDIDO CREATES APP TO REPORT PROBLEMS
REALTORS® can provide their Escondido clients with information about how to report problems such as graffiti, pot holes, hazards or crime issues directly to the city.
The city has created an app called Escondido, Report It!, that allows you to make real time reports with your smartphone. In addition to filing a report, you can upload a photograph to clearly illustrate the issue. The app is available for the iPhone at the App Store, and for Android phones at Google Play. Just search for Escondido, Report It!
REALTORS® CONTINUE TO HEAR HORROR STORIES
ABOUT PACE/HERO LOANS
Kern County Board of Supervisors votes to shut down PACE program
Opponents of the PACE program claimed victory in Kern County last week when County Supervisors voted to suspend PACE (Property Assessed Clean Energy) programs.
Melissa Dominguez says she was introduced to the pace program in 2013, when she got new windows and doors installed in her home. She says she did all her homework as a consumer.
"I had asked several times, 'Will I have trouble refinancing my home?' and the answer continuously was 'No, no, you won't have a single problem refinancing your home,'" she said.
The reality, however, is that she is struggling to refinance her home due to her outstanding PACE loan.
PACE or the Property Assessed Clean Energy program is an opportunity to provide typically lower income homeowners with a way to make affordable environmental upgrades to their homes, such as heating/AC, solar panels, roof or window improvements. Homeowners are given a loan that is repaid through property taxes.
Often the consumer is not told that the PACE/HERO loans a super-priority lien, requiring them to be paid off first for a property to be sold or refinanced. In many cases the improvements done did not add promised value to the home and the loan has depleted all equity.
Like Kern County, many jurisdictions that endorsed the program are now looking at backing out. In the meantime, CAR is working to educate REALTORS® about the problems such loans can mean for real estate consumers. There are also attempts to pass legislation that would require greater disclosure to protect the consumer.
In the meantime, REALTORS® can provide a service to their clients by keeping them aware of the pitfalls of these types of loans. Many contractors are promising increases in home values that are simply not realized, charging excessive interest rates for projects, and not disclosing loan conditions that might impact sale or refinance of the home.