In the aftermath of emergencies, the real estate industry in California faces unique challenges. Understanding the state's anti-price gouging laws is crucial whether you're a sales agent, broker, or property manager. These laws not only protect consumers during crises but also guide professionals in maintaining ethical standards.

Here's what you need to know: 

The Essence of Price Gouging in Real Estate
Price gouging occurs when prices for housing, rentals, or other essential services are significantly increased to exploit an emergency. For real estate professionals, this typically relates to the pricing of rentals, homes for sale, and emergency lodging. The goal is to prevent undue strain on those affected by disasters, ensuring access to housing remains fair and equitable.

California’s Stance on Price Gouging
California law, specifically Penal Code Section 396, restricts increasing the price of housing and other essential services by more than 10% following an emergency declaration. This applies to sales, rentals, and services across the board, ensuring that real estate professionals are aligned with legal and ethical pricing standards during critical times.

Timing and Application of the Law
These protections activate immediately upon an emergency declaration by federal, state, or local authorities and are initially set for 30 days. For real estate-related services, like reconstruction and cleanup, the period extends to 180 days. Importantly, officials can extend these timeframes to meet ongoing needs, affecting how properties are marketed and managed.

Staying Informed on Declarations
Real estate professionals should closely monitor emergency declarations to comply with legal requirements. This includes staying updated through the Governor's website and local government channels. Awareness of state and local declarations is key to ensuring your practices align with current regulations. The following locations are under price gouging protections.

Who and What Is Covered?
The statute broadly applies to all entities within the real estate sector, including individuals and companies involved in selling, renting, or managing properties. It covers a wide range of necessities, notably including rental housing, hotels, and motels, ensuring that the industry's response to emergencies is comprehensive and compliant.

Addressing Cost Increases and Violations
If your costs increase due to supplier price hikes, the law allows the cost to be factored into pricing, provided it can be justified. However, compliance with the statute is closely monitored, and violations can lead to severe penalties, including fines and criminal charges. Ensuring transparency and fairness in pricing is crucial to avoid legal repercussions.

Role of Real Estate Professionals in Compliance
As gatekeepers of housing and essential services, real estate professionals have a pivotal role in upholding these laws. This involves adhering to pricing regulations and advising clients and the community on their rights and protections. Your guidance can help navigate the complexities of emergencies, ensuring access to housing remains fair and stable.

Conclusion
For real estate professionals in California, understanding and complying with anti-price gouging laws is essential. These regulations ensure that during emergencies, the industry acts with integrity, maintaining fair pricing and access to housing. By staying informed and adhering to these laws, you play a vital role in supporting communities during their most vulnerable times, reinforcing the ethical standards that define the real estate profession.

This link provides useful guidance for identifying if a state of emergency affecting price gouging in rental housing is in effect. Simply locate your rental property's county on the list and note the code (a letter in parentheses) next to it. Then, refer to the explanations at the bottom of the page to understand which price gouging laws apply to your situation

Important Disclosure
Please note that the information provided in this blog post is for general informational purposes only and does not constitute legal advice. Real estate laws and regulations can be complex and subject to change. While we strive to present accurate and up-to-date information, we cannot guarantee the completeness, reliability, or applicability of the content to your specific situation.

As a real estate professional, it's essential to understand your actions' legal implications, especially in emergencies and price-gouging laws. Therefore, we strongly recommend consulting with a qualified attorney or legal expert to obtain advice tailored to your specific circumstances. Doing so will ensure you navigate these challenges with the utmost compliance and integrity, safeguarding your professional practice and the communities you serve.

The recent wildfires in California have caused widespread devastation, displacing families and destroying thousands of homes. REALTORS® can help by supporting two impactful, REALTOR®-backed non-profits. The REALTORS® Relief Foundation provides assistance to the public, showcasing how REALTORS® care for their communities, while the C.A.R. Disaster Relief Fund supports REALTORS® and their staff, reflecting the organization’s commitment to its members who have been directly impacted. Importantly, 100% of every donation goes directly to helping those in need.

REALTORS® Relief Foundation

The REALTORS® Relief Foundation (RRF) focuses on helping the public by providing housing-related assistance to families impacted by disasters. This fund demonstrates REALTORS®' compassion for the communities they serve.

• RRF delivers aid quickly, often before insurance or government assistance becomes available.
• Donations cover temporary housing, repairs, and mortgage payments for victims.
• 100% of contributions go directly to disaster relief, with administrative costs fully covered by NAR.

Donate to the REALTORS® Relief Foundation (to help the community)

C.A.R. Disaster Relief Fund

The California Association of REALTORS® Disaster Relief Fund supports REALTORS®, their employees, and association staff who are personally affected by natural disasters. This fund highlights the organization's commitment to caring for its own members, providing direct assistance to help them recover and rebuild.

• The fund offers grants for temporary housing, mortgage payments, and essential repairs.
• It reflects a strong sense of solidarity within the REALTOR® family.

Donate to the C.A.R. Disaster Relief Fund (to help REALTORS® )

Your Impact Matters

Both funds serve critical needs. The REALTORS® Relief Foundation helps the public recover from disasters, while the C.A.R. Disaster Relief Fund ensures REALTORS® and their staff have support when they need it most. Thank you for your generosity in helping those who need it most. Together, we can make a meaningful difference.

BEST Practice

Once a property is sold, in both SDMLS and in CRMLS, to make your listing to be available for comparables, input the entire Concession Amount into the Concession Comment Field so agents in both MLS systems know what it is.  It is critical that agents list all concession amounts and what they were allocated towards so that other agents know what was given as a buyer concession vs a commission concession.  Find out why by reading this post.

Key Differences Between SDMLS and CRMLS when Researching Comparables Post Settlement. These Fields are available to complete after a property has sold and is being moved from pending to sold status.

SDMLS Approach:
SDMLS has specific guidelines regarding the disclosure of seller concessions. According to their Q&A on policy changes post-settlement:

“Seller-offered concessions should be mentioned in the Confidential Remarks field with the instruction to contact the listing agent for details.”

In SDMLS, agents can use the “Concessions Comments” field to input details about seller concessions. This field allows for flexibility, with comments that may include text descriptions or numeric values. For example, agents might see comments like:

• • “$2,990 for wood-destroying pest repairs”
  • “Closing costs covered by the seller”
  • “$5,700 Seller Credit”

While these comments provide valuable information, they can be inconsistent in format and detail, which may complicate property comparisons.

CRMLS Approach:
CRMLS still includes the flexible comment section and this is the field that will be shown in the SDMLS system, but CRMLS takes a different approach to reporting concessions. The CRMLS system provides a breakdown of seller concessions at the close of a transaction, with the mandatory fields categorized as follows:

• • Closing Costs (e.g., escrow and title fees)
  • Property Improvements (e.g., repairs and upgrades)
  • Financing Costs (e.g., loan origination fees, discount points)
  • Buyer Broker Fee (amount the seller paid directly to the buyer’s broker)
  • Other

This breakdown ensures that agents and their clients have a clear understanding of how concessions, were applied.

Viewing Concessions Across the Two Systems

When navigating concessions in the dual MLS marketplace, agents will see different displays depending on the MLS they are accessing.

For CRMLS subscribers, the report for CRMLS listings will include a detailed breakdown of concessions by category (circled in red.) The example below shows how these details are presented. If an SDMLS agent included a remark in the “Concessions Comments” field, those details will appear in the highlighted sections shown in yellow here:

CRMLS Paragon View (Actual PSAR listing)

For SDMLS users viewing CRMLS listings, the screen (below) will display the structured concession breakdown on the right side, while any SDMLS-specific remarks will be visible on the left:

SDMLS Paragon View (Same Actual PSAR listing)

CRMLS Paragon View (Actual SDMLS sold listing)

SDMLS Paragon View (Actual SDMLS sold listing)

Understanding these distinctions is essential for agents who need to pull comps from both MLS systems. Accurate comparisons require not only the ability to see the numbers but also to understand the context in which they’re reported.

Navigating the Differences

For agents working in either MLS system, it’s important to recognize how each handles concession disclosures and reporting. When pulling comps, take note of the differences between SDMLS’s more flexible comments and CRMLS’s detailed breakdown. Adjusting for these variances allows you to deliver more precise market analyses to your clients, ultimately helping them make better-informed decisions in San Diego’s dynamic real estate market.

TRACY MORGAN HOLLINGWORTH

PSAR GOV’T AFFAIRS DIRECTOR (1956-2024)

(Services)

The PSAR family is heartbroken at this time following the sudden passing of Tracy Morgan Hollingworth, who held PSAR’s Government Affairs Director position for the past 21 years. According to husband Andrew Hollingworth, Tracy passed away peacefully in her sleep on August 5. She was 68 at the time of her passing.

Considered the dean of real estate lobbyists in San Diego County, Tracy was greatly loved and admired. No one in San Diego had worked longer in real estate government affairs than Tracy. She was proud of her record of longevity in government affairs services among Realtors in California-based REALTOR® associations.

Tracy was more than just a colleague. She was a pillar of the community, a dedicated leader, and a true friend to many. She served on many boards and commissions in service of her community and as recently as July 23, she attended a meeting between members of the PSAR Government Affairs Committee and California State Senator Brian Jones. Over the years, her savvy political advocacy efforts contributed to the prevention of passage of many state laws deemed detrimental to the best business interests of PSAR members.

Rich D’Ascoli, PSAR CEO, commented, “As a REALTOR® advocate for PSAR, Tracy was instrumental in defeating rent control in National City, a critical victory for property owners. She also played a key role in protecting private property rights in East County by helping as an opposition member to downzoning efforts. Her advocacy extended to the county level, where she worked on several land use initiatives, including the General Plan update, to ensure the interests of private property owners were represented and protected.”

PSAR member Mike Anderson, a long-time participant on the PSAR Government Affairs Committee, stated, “Tracy’s governmental updates for the GA committee were always thorough and enlightening, and she was invaluable during our GA meetings and on our annual Sacramento Legislation Day trips.”

A San Diego native, Tracy was born Jan. 2, 1956. She grew up in the East County and attended Flying Hills Elementary School in El Cajon and Cajon Valley Junior High. Her grandfather had moved with his family from Illinois to the Bostonia area of El Cajon in 1911, so her East County roots ran deep. She graduated from Santana High School in Santee. At Santana, she organized school assemblies and served as a peer counselor, confidentially assisting other students with personal problems ranging from family issues to drug addiction.

As a summer job, she worked in the Kings Canyon National Park, where she met actors Tim Conway and Harvey Korman, alums of the long-running TV show "The Carol Burnett Show", who were traveling with their families.  After summer's end, she was awarded a scholarship and attended Mount Vernon College, a women’s college in northwestern Washington, D.C., from 1976 through 1977. There, she studied international law and worked alongside professors who helped craft legislation for members of Congress. She also took a “Comparative Politics” course, for which she traveled to Rome and London and met with national lawmakers.

In 1977, Tracy landed a staff position with California U.S. Senator S.I. “Sam” Hayakawa. Tracy assisted in the drafting of legislation that helped San Diego’s tuna fishing industry stay competitive with fishing fleets in other countries. Later, while completing her bachelor’s degree in political science and economics at San Diego State University, she worked to implement those policy recommendations.

An economics professor encouraged her to join an internship program at the state Capitol in Sacramento.  While there, she earned a master’s degree from California State University, Sacramento. She spent 10 years working at the state Capitol for members of the California State Assembly, the League of California Cities, and other governmental bodies. During her time with the State Assembly, Tracy worked with key policy staff to draft legislation designed to create the California Welfare to Work Program, the first and only tax surplus rebate to state taxpayers. She also helped the California Association of REALTORS® carry a bill that expanded the C.A.R. Legal Action Fund.

Tracy met her husband Andrew "Andy" Hollingworth while both were working late hours analyzing committee bills for hearings. Before the age of PCs, the state had developed a cumbersome computer network that Andy had mastered. Andy, who was working as an advisor to four legislative committees, instructed Tracy on how to search for key bill information that showed legislators what special interest groups were supporting certain legislation and what organizations supported or opposed the legislation. Tracy and Andy dated four years before Andy proposed on one knee in the snow during a trip to Lake Tahoe.

Tracy’s work in the Legislature led to her serving 13 years with the Sacramento Association of REALTORS® (1988-2001). She then spent 21 total years serving the East San Diego County Association of REALTORS® (ESDCAR) and Pacific Southwest Association of REALTORS®  following the merger of the two associations.

In 2002, she started her own association management consulting firm. In addition to PSAR members, her clients over the years included the American Society of Landscape Architects San Diego Chapter, California Council of the American Society of Landscape Architects, East Otay Mesa Property Owners Association, California Municipal Managers Association, ACE Mentor, Urban Land Institute and several other land-use organizations.

Tracy is survived by her husband of 35 years Andrew Hollingworth, sisters Kathleen Morgan and Mary Ellen Morgan, and their 90-year-old mother Diane Morgan. Andrew stated that he was Tracy’s confidant as well as business partner. “We collaborated on everything, Tracy was a wonderful spouse and partner. She was the smartest person I know of in terms of land use real estate policy and politics. She has mentored many real estate lobbyists and elected officials. Tracy lived and breathed real estate.” In March of this year, Tracy and Andrew participated in a formal marriage recommitment ceremony officiated by County Assessor-Recorder-County Clerk Jordan Z. Marks.

“Tracy was fiercely loyal to her friends in good times and bad, and friendly and helpful to everyone,” said Andrew. “Once you were her friend you remained so for life.”

Services 

The family has planned the following public events to celebrate Tracy’s life:

A viewing will be held from 9 a.m. to 1 p.m., Monday, Aug 26, at Glen Abbey Mortuary’s La Jolla Chapel facility in Pacific Beach, located at 4710 Cass St., at the corner of Cass and Diamond Streets.

Burial and prayers will follow at 2 p.m. at Glen Abbey Memorial Park, located at 3838 Bonita Road, Bonita.

A celebration of life ceremony will be held from 12 p.m. to 1 p.m., Saturday, Sept. 7, at La Jolla Presbyterian Church sanctuary, located at  7715 Draper Ave., La Jolla. The parking garage entrance is on Kline Street. A reception will follow in the church Fellowship Hall located across the courtyard.

For more information about these public events, contact Kathleen Morgan at katinparis03@yahoo.com.

PSAR expresses our sincere condolences to the Hollingworth family at this time. Cards and notes can be mailed to the PSAR offices.

Hermila "Mila" Cesena was born on April 7, 1943, in Mazatlán, Mexico, to Maria Consuelo Alvarado and Jesus Raymundo Galdeano. She was the mother-in-law of PSAR Committee member Juliette Montoya-Cesena, was an agent with Berkshire Hathaway, and was a member of PSAR since 1978.

She grew up and attended school in Mazatlán before moving to Tijuana at age 15. There, she met her future husband, Jesus Cesena, and they remained married for 61 years. Together, they had two sons, Jesus and Carlos, and also raised Mila’s younger brothers, Alvin, William, and Edward, after their mother passed away from lupus. She joined PSAR in 1978 and worked with Berkshire Hathaway.

In the early 1970s, Mila earned her real estate license.  Real estate became her passion and lifelong career. She was dedicated to helping her clients achieve homeownership, counseling them to pay off their home mortgages as soon as possible. She cherished hearing from clients who had achieved the goal of complete homeownership. 

Mila had a vibrant personality and was known as the life of the party, brightening the mood of those around her. She loved to dance and create a fun environment for everyone, going out of her way to raise the spirits of those who seemed down.

Family was very important to Mila. She enjoyed family vacations and cherished time spent with her loved ones. Fond family memories include summer vacations to Mexico with her sister-in-law and her boys.   Mila also found peace in long walks on the beach, taking in the sights and sounds of the ocean that imparted a sense of tranquility and peace of mind.

Hermila Cesena's mass will be held on 7/26/24 at
Corpus Christi Catholic Church, Bonita at 12 noon
Followed by interment at Glen Abbey Memorial at 2:00 PM.

If you are looking to Chat or File a Ticket with CRMLS Compliance or Support, it's moved.  Here is a quick video Tutorial on where to look.

Click here to see a quick video on where to look.  

Picture a frantic call from a potential renter who's just realized they've been scammed using your property's listing.

Scammers are increasingly targeting properties listed for sale, marketing them as rentals on platforms like Craigslist and Zillow. This alarming trend not only undermines trust in real estate transactions but also creates significant issues for property owners and REALTORS®. As REALTORS®, it's crucial to be vigilant and take proactive measures to protect your listings. Here’s how you can stay ahead of these scams and what to do if it happens to you.

Understanding the Scam

A typical scam involves a fraudster picking up a "For Sale" property and posting it as a rental. They solicit application fees and deposits from unsuspecting renters, claiming to be the owner. One such incident involved a scammer posting a rental listing on Craigslist and Zillow, soliciting an application fee. The scam is usually identified when a potential renter contacts the legitimate listing agent or the homeowner.

The Impact on Agents and Owners

While tenants can lose money, the repercussions for property owners and agents can be equally as severe. A defrauded tenant might move into the property, and due to California’s tenant protection laws, removing them can be a lengthy and complex process for both the tenant and the owner. This situation creates legal and financial challenges for the property owner, the tenant, and the REALTOR® managing the listing.

Steps to Prevent Scams

1. Regular Monitoring:

   • Frequently check platforms like Craigslist, Zillow, and others for unauthorized rental listings of your properties.
   • Set up Google Alerts for your property addresses to receive notifications if they are mentioned online.  Here are instructions for doing so.

2. Clear Communication:

   • Inform your clients about the potential for scams and advise them to contact you if they receive any suspicious inquiries.
   • Ensure your contact information is prominently displayed on your listings and signage.

3. Educate Your Clients:

   • Inform sellers about the scam and encourage them to report any suspicious activity they encounter.
   • Provide them with a list of red flags to look for, such as requests for payment before seeing the property or communications from email addresses that do not match the legitimate owner’s contact information.

What to Do If Your Property Is Scammed

1. Report Immediately:

   • Contact the platform where the fraudulent listing is posted (e.g., Craigslist, Zillow) and request immediate removal.
   • Report the scam to local police, the County Sheriff, and the District Attorney’s office.
   • Notify the Federal Trade Commission (FTC) and the Attorney General’s office.
   • Here is a list of contacts provided by the San Diego DA

2. Inform All Parties:

   • Notify your seller and any legitimate tenants about the scam.
   • Advise them to be vigilant and report any suspicious activity.

3. Document Everything:

   • Keep detailed records of the fraudulent listing, including screenshots, communication with the scammer, and any reports filed with authorities.

4. Legal Considerations:

   • Consult with legal professionals to understand the implications of a defrauded tenant occupying the property.
   • Prepare for possible eviction proceedings, which may require legal assistance due to California’s tenant protection laws.
5. Secure the Property
   • Change the locks to prevent unauthorized access.
   • Add security cameras to notify you of unauthorized access.
   • Consider removing lockbox access.
   • Consider private security.

By following these steps, you can significantly reduce the risk of your listings being targeted by scammers. Stay vigilant and proactive to protect your clients and your reputation in the real estate market.

How to Set Up a Property Alert Using Google Alerts

Setting up Google Alerts is an effective way to monitor your property addresses and stay informed about any unauthorized listings or mentions online. Here’s a step-by-step guide to create a Google Alert for a property address:

1. Go to Google Alerts:

   • Open your web browser and go to Google Alerts.

2. Enter the Property Address:

   • In the search box at the top of the page, enter the property address you want to monitor. Use quotation marks around the address for more precise results (e.g., "123 Main Street, San Diego, CA").

3. Customize Your Alert:

   • Click on “Show options” to customize your alert settings:
     • Frequency: Choose how often you want to receive alerts (e.g., as-it-happens, once a day, once a week).
     • Sources: Select the sources you want to include (e.g., news, blogs, web, video).
     • Language: Set the language for your alerts.
     • Region: Specify the region to refine your results.
     • How many: Choose between "Only the best results" or "All results" based on your preference.

4. Set Up Notifications:

   • Enter your email address to receive the alerts. If you are signed in to your Google account, it will automatically use your account email.

5. Create Alert:

   • Click on “Create Alert” to finalize the setup. You will start receiving notifications according to your specified preferences.

By following these steps, you can ensure that you are promptly informed about any online activity related to your property listings, allowing you to take swift action if unauthorized listings or mentions are detected.

Effective August 13:

1. Removal of Compensation Fields
   • From Matrix, Paragon, and Flexmls.
   • CRMLS Rules and Policy changes go into effect.
   • The concession field at Close will include a category list.

Key Points:

• Reason for Removal:

  • NAR settled the Sitzer/Burnett case regarding MLS commissions.
  • Compliance with the settlement requires MLS systems to remove all Compensation fields.

• Impact on Active Listings:

  • Compensation fields for Coming Soon, Active, Hold, and Withdrawn listings will be removed.

• Historical Listings:

  • Compensation fields for Active Under Contract, Pending, Closed, Expired, and Cancelled listings will remain but cannot be edited.

• C.A.R. Forms:

  • Release of updated forms postponed. Updates will be provided.

• Payment Methods Post-Removal:

  • Buyer's Broker compensation can be included in the buyer's offer.
  • Payment details can be included in the Escrow Instructions if using the C.A.R. Residential Purchase Agreement.

• CRMLS Rules & Policy Changes:

  • Rule 7.15: Renamed to No Offers of Compensation in the MLS.
  • Rule 7.19: Renamed to No Disclosure of Listing Broker Total Commission.
  • Rule 9.1: Renamed to Showings.
  • A signed Buyer Broker Agreement is required before showing a property.
  • View all changes here.

• Reporting Seller Concessions at Close:

  • New required fields: Closing Costs, Property Improvements, Financing Costs, Buyer Broker Fee, Other, and Total Calculated.

• Difference Between Concessions and Compensation:

  • Concessions allow buyers to choose how money is spent, supporting a consumer-centric model. Watch the Concessions vs. Compensation video for more information.

• Staying Updated:

  • Visit the CRMLS Resource Center frequently for updates and information.

As of June 24th, the Access by Appointment (ABA) setting is now available for Sentrilock users. LIcensees can now restrict access to their lockboxes, allowing entry only to agents with an approved appointment on SentriKey. This feature can be easily enabled using either the SentriKey Real Estate (SKRE) app or the SentriKey website. 

Enabling ABA ensures that only approved licensees can access your property’s lockbox, enhancing security and control. Follow these simple steps to get started and secure your listings effectively.

What is Access by Appointment?

Access by Appointment (ABA) is a feature that requires REALTORS® to have an approved appointment in the SentriKey system to access the lockbox assigned to a listing. This feature adds an extra layer of security, ensuring that only those with scheduled access can enter the property.

How to Enable ABA on the SentriKey Real Estate App:

1. Open the SKRE App: Start by opening the SentriKey Real Estate app on your smartphone.

2. Access the Menu: From your Home Screen, tap the Menu icon in the upper left-hand corner.

3. Select My Lockboxes: Navigate to 'My Lockboxes'.

4. Assign the Lockbox: If the lockbox is not already assigned to a property, select 'Assign/Unassign Property' and complete the assignment process. If the lockbox is already assigned, proceed to 'Property Access Settings' and choose the listing.

5. Enable ABA: Select' More Settings' once the lockbox is assigned. Here, you can turn on the ABA feature.

How to Enable ABA on the SentriKey Website:

1. Log In to SentriKey: Visit the SentriKey website and log in to your account.

2. Go to Listings: Select 'Listings' from the toolbar on the left-hand side of the screen.

3. Select Your Listing: Click on the Ellipses (three dots) on the right-hand side of the listing you wish to manage.

4. Enable ABA: Choose 'Enable ABA' from the dropdown menu.

By following these steps, you can easily manage property access and ensure that only approved REALTORS® can enter your listings.

Stay Informed and Secure

Keeping your properties secure is crucial. SentriLock’s ABA feature provides peace of mind by adding layer of control over who can access your listings. For more tips and tutorials on managing your properties effectively, subscribe to our blog and stay updated with the latest real estate technology insights.

Let’s unlock success together!