Dear MCAR member,

Please read the important updates from DRE and C.A.R. below. Register today if you have questions or feedback for our Government Affairs Director, Scott Dick. Click the image below to register.

Similar to the C.A.R. update below regarding open houses, MCAR members have asked about policies that may be misinterpreted by some. To be clear, open houses are not allowed. Announcements from C.A.R. pertain to State regulations, but County regulations can be and are more restrictive.

It is the responsibility of each person conducting real estate business as an essential service during the pandemic to fully educate themselves and comply with all regulations. For your convenient reference, all news and updates pertaining to doing business during the pandemic are available on MCAR's COVID-19 Information and Resources page.

Kevin
DRE Update
 
1.  On July 14, the Governor issued an Executive Order N-71-20 affecting DRE Licensees. Highlights include extending the following until December 31, 2020: 
  • timeframes associated with examination application expiration dates 
  • timeframes associated with license expiration dates
  • deadlines related to the payment of license application fees 
  • deadlines related to the payment of license renewal fees 
  • deadlines related to completing continuing education requirements for expiring licensees 
  • deadlines specified in existing Orders issued by the Real Estate Commissioner
2.   DRE is cancelling real estate salesperson and broker license exams at the Oakland Examination Center in Alameda County through July 31, 2020. This action is being taken to comply with state and local public health agency orders to assist in slowing the spread of COVID-19. Examinees affected by this examination cancellation will be allowed to reschedule their canceled exam dates using DRE’s eLicensing system. Exam rescheduling fees will be waived for canceled exams. Examinees with questions or concerns regarding canceled exams can contact DRE’s Licensing program at (877) 373-4542 or by email at  Ask.DRELicensing@dre.ca.gov . 

3.  The DRE has reassigned 17 employees including 5 or 6 recently hired special investigators from its Los Angeles office to assist the Department of Public Health with contact tracing efforts to prevent the spread of COVID-19. As for licensees who may be violating/have violated the Governor’s Executive Orders, if the DRE learns of such violations, they indicated their focus is to educate the subject licensee and remind him/her of the importance to follow the Executive Orders and take efforts to minimize/eliminate the spread of the virus. Although the DRE did not explicitly so state, it is also possible that if these violations are egregious or repeated, they may also be reported to the authorities for further action.
SBA EIDL Loan Update
 
On July 11, the SBA announced that it has discontinued making Economic Injury Disaster Loan (“EIDL”) emergency grants to new applicants, having allocated the full $20 billion that was appropriated by Congress for the program. EIDL loan applications will still be processed by the SBA, even though the emergency grant is no longer available. Keep in mind that EIDL loans are not forgivable and will need to be repaid. This is reflected in our FAQs. 
Open House Clarification
 
On July 2, the Departments of Public Health and Cal/OSHA released new guidance on COVID-19 including some relating to real estate. While there are some changes in office openings, cleaning protocols and other issues which required minor changes in the BPPP and related forms, they do not significantly change practices. 
 
“Open Houses” on a walk-in basis are still prohibited.  All showings still require either an appointment or a digital sign-in process prior to entry including completing a PEAD form. Any such showings still must follow these rules: (1) Have protective equipment made available like masks and hand sanitizer (2) Thoroughly clean all shown properties and disinfect commonly used areas such as doors and door knobs, cabinet handles, switches, etc. (3) Control the number of people in the house by only allowing in one buying party at a time (which could be more than one person). The listing agent and buyer's agent may also be on the property at the same time. (4) All showings require appointments OR digital sign-ins. 

Based on this, an advertisement using the term "Open House" alone is likely deceptive as it implies a walk-in basis without the mandatory appointments/digital sign-in protocols that are not typical for an “Open House.” Although it is recommended that no “Open House” signs be used, if they are, they must also include information on the sign or a sign rider indicating that appointments or digital sign-in are required before entry.  Of course, the regular protocols of advance digital completion of PEAD forms before entering, social distancing, limitations on persons going through the house at one time, cleaning and disinfecting between each showing, etc. apply. However, any type of traditional open houses -- spontaneous walk-up with no digital sign-in or appointment or adherence to all protocols—would threaten the policy allowing licensees to show property and, worse, threaten the health of the seller and those visiting potentially causing a super-spreader event.  

REALTORS® using “Open House” signs or advertisements without the riders about advance appointments or digital sign-in may be subject to ethics discipline for violating the “true picture” test under Article 12 as the common understanding of an “Open House” by the public and the industry does not include advance digital sign-ins or appointments, along with the other protocols that would delay a spontaneous showing. In the end, variations on this would have to be decided by panels, in the context of the COVID-19 rules in place at the time.  

As a reminder, cities or counties may be more restrictive than State Guidance and orders. Some local rules prohibit any type of “Open House” or restrict the number of persons who can view the property to two at one time. The more restrictive local rules will supersede the statewide industry guidance and must be followed. Of course, in those jurisdictions prohibiting “Open Houses” altogether, “Open House” signs should not be used at all.  
Latest Market Statistics
 
June 2020 Housing Market Update

  • Existing, single-family home sales totaled 339,910 in June on a seasonally adjusted annualized rate, up 42.4 percent from May and down 12.8 percent from June 2019. 
  • June's statewide median home price was $626,170, up 6.5 percent from May and up 2.5 percent from June 2019.
  • The statewide Unsold Inventory Index was 2.7 months in June, down 37.2 percent from May and down 20.6 percent from June 2019.
Product Spotlight
 
VIRTUAL TOURS & 3D MODELS WITH INTEGRATED VIDEO CHAT

Virtual tours have increasingly become an essential part of the home buying and selling process. EyeSpy360 has partnered with C.A.R. to offer members a very quick, easy, and affordable way to create virtual tours and 3D models for property listings. EyeSpy360 tours allow for instant remote property viewings with anyone, at any time and on any device. Features include integrated video chat that instantly connects multiple people inside any virtual tour, pre-recorded walkthroughs, and easy-to-add interactive information labels with your branding. EyeSpy360 integrates directly within zipForm Plus and preferred C.A.R. pricing can be claimed from the Marketplace tab on any transaction.
Resources for Members
 
COVID-19 Relief Hotline: 213-351-8450

Legal Hotline: 213-739-8282

Transaction Rescue Hotline: 213-739-8383

Ombudsman Hotline: 213-739-7227