Open Houses and You

Periodically we will send our REALTOR members friendly reminders when out on caravans and at open houses. Please review these guidelines for signage and open houses:

 Broker Opens:

Every week REALTORS® in the South Bay have the opportunity to preview open houses during Broker Opens in different cities on different days of the week. You may see the schedule of Broker Opens at SBAOR’s website, www.SouthBayAOR.com.

Signage:

Please be aware of signage laws in your cities, posted on SBAOR’s website here. Usually, open house signs are prohibited on parkways – the grassy area between the sidewalk and the street. In addition, lead-in signs are usually prohibited on public rights-of-way including sidewalks and medians. 

While Driving Around:

Please be mindful of traffic laws. In particular, when parking your vehicle at a listing you are urged to follow these guidelines:

• Do not block driveways of neighboring homes, curb cuts or handicap access routes 
• Do not park in front of fire hydrants or at curbs painted red or blue
• Do not speed, especially on residential streets or where children may be present 
• Do not double park or impede the flow of traffic

REALTORS unimpressed with recently proposed federal tax reform

An early draft on tax reform was released by a key House committee chairperson in late February. Portions of the draft proposal negatively affect homeowners, qualified buyers and sellers by impacting deductions on capital gains, property taxes and mortgage interest.

REALTORS all but pronounced these plans dead on arrival and are reminding lawmakers about the importance of upholding homeownership, building stable communities, and making housing available to families who are qualified to purchase a home.

NAR released a letter to Congress calling for support of homeownership and preservation of tax provisions that protect American families. Last week, NAR said in a statement that

 “We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today, namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes. These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly. 

 “NAR will carefully analyze the details of the Chairman’s plan so we can best educate Congress and the public about how this plan would impact the owners, consumers, and producers of both residential and commercial real estate.”

REALTORS® in Los Angeles and Orange Counties – don’t miss this event that could impact your business in single family homes this year!

Chapman Single Family Investment Roundtable: Are Happy Days Here Again?
Special discount for this blog's readers!

This roundtable event is an informative panel discussion focusing on single family housing as it relates to the economic recovery as well as its emergence as an asset class.  The panel will feature leading executives in Orange County including Emile Haddad, the developer of the Great Park Neighborhoods in Irvine, as well as economist Gerd-Ulf Krueger, and Scott Laurie, President and CEO of Olson homes.

Arixa Capital is co-sponsoring the event with Chapman University.  For about 7 years, Arixa Capital has been hosting a similar discussion at UCLA Anderson, and we are expanding our reach to include Orange County. It is a $30 value, but only costs $20 with pre-registration or $15 if you use promo code SBAOR, and includes the panel discussion, hors d’oeuvres, beer and wine.

Register at: http://chapmanroundtable2013.eventbrite.com/

Additional information at: http://arixacapital.com/event/chapmanroundtable/ or http://arixacapital.com/chapmanroundtable/

What Makes this Event Special?
Earlier this year, our single family roundtable at UCLA Anderson drew over 250 attendees for networking, refreshments and a lively panel discussion that included successful developers, top brokers, investors and lenders active in the single family market. The reasons our events have succeeded while other conferences sometimes draw limited attendance include three main factors:

(1) Great Panel.
The panel discussion is unusually candid. We generally repeat our events annually in each location and we typically have many returning investors, developers and financiers each year, both on the panel and in the audience. This builds a sense of community and helps participants to form lasting relationships.

(2) The Price is Right.
At only $20 per person with pre-registration, including food, beer and wine, there is no better value than our conference.

(3) Excellent Networking.
Our event starts with a one-hour reception during which you will meet valuable contacts in a collegial atmosphere. At the reception and after the discussion, you can meet the panelists and other professionals and investors in our industry.

ALERT: Don't Let Congress Inaction on Flood Insurance Sink Your Clients

ACTION ALERT: Flood insurance rates are about to go up, unless Congress acts now! Don't allow increased insurance costs to price your qualified clients out of their new home.

Approximately 5.6 million property owners in over 20,000 communities across the country rely on the National Flood Insurance Program (NFIP) for flood insurance. Congress provided a 5-year reauthorization of the NFIP, but severe implementation problems threaten to undermine real estate transactions where flood insurance is required to obtain a mortgage.

TAKE ACTION HERE!

NAR is calling for support of the bipartisan "Homeowner Flood Insurance Affordability Act" which would delay insurance rate increases. A delay in newly-mandated NFIP rate increases will allow FEMA to determine more accurately how these rates will impact property owners as Congress planned, and give affected property owners more time to respond to higher rates.

If fewer homeowners can afford flood insurance, then in the event of future floods taxpayers will spend more on federal disaster relief to owners of uninsured properties. Meanwhile, without flood insurance, homeowners located in flood zones could default on their mortgages.

Click here to take action on flood insurance and protect your qualified homebuyers!

Relief for California Homeowners! Families who sold their home in a short sale get a special gift under their tree - relief from state income taxes

Homeowners in California who sold their home in a short sale will not be subject to state income taxes on the so-called "phantom income" resulting from debt forgiveness. This is an important benefit to families all over California and is as hard-fought victory for REALTORS®.

In a statement issued today, the California Association of REALTORS® said that the California Franchise Tax Board clarified the taxable status of short sales and matched the policy already issued by the Federal Internal Revenue Service last month. The good news just keeps coming, just in time for the holidays.

The C.A.R. statement goes into more detail on this important victory:

C.A.R. today received a letter from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.

Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes.  Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB.  Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.

We are pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California.  We would like to thank Sen. Boxer and BOE member George Runner for their leadership in obtaining this guidance from the IRS and FTB.  Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.