Imagine downloading a free smartphone app, checking a few boxes, and saving $36,000 while an artificial intelligence chatbot sells your house for you.

It sounds like science fiction, but technology reporter Stuart A. Thompson seemed to do exactly that for a recent feature in The New York Times (I Tried to Sell My House With a Chatbot). He used Google's Gemini chatbot as a 24/7 real estate consultant. The AI wrote his property description, structured his photo gallery, and literally coached him word-for-word through tricky price negotiations with buyers.

By copy-pasting the AI's clever text responses back and forth to buyers, Thompson avoided paying traditional commissions and walked away with a massive profit. He concluded that AI can now mimic human "wisdom" so well that human real estate agents will soon become a luxury of the past, just like travel agents.

It’s a tempting story. But it is a complete illusion.

Thompson’s experiment only worked because his chatbot was "free-riding" inside a safe, multi-billion-dollar ecosystem built, paid for, and policed by human REALTORS®. If tech-hype breaks this human cooperative apart, the housing market will collapse into a chaotic, scam-filled environment like Craigslist or Facebook Marketplace.  To experience marketplaces like this, shop for real estate in the thousands of markets around the world.  Simply get online and attempt to purchase a property south of the border in Mexico and experience the fragmented market firsthand.  AI won’t help you there.

AI can write a clever script, but it completely fails when it comes to local data accuracy, emotional intelligence, physical safety, and legal accountability.

1. AI Has Zero Data Without REALTOR® Organizations

AI chatbots do not actually know anything about your neighborhood's current housing market; they only know the data they are trained on. Advanced algorithms get their real estate information by scraping the Multiple Listing Service (MLS).

The MLS isn’t just an open digital bulletin board. It is a massive, highly regulated cooperative managed by strict human rules that force professionals to input honest data and immediate timeline updates.

• The Glitch in the Data: For Sale By Owner (FSBO) data uploaded by random internet users is notoriously messy, exaggerated, and unverified. Without human REALTORS® policing the listings, AI models will eventually train themselves on wrong prices, fake listings, and outdated information.

• Garbage In, Garbage Out: If every consumer simply types whatever they want into the market, the automated tools people use to estimate home values will become completely broken and unreliable.

2. Physical Security vs. Automated Vulnerability

Selling a house means letting total strangers walk through your physical home and look through your personal belongings. Thompson's AI chatbot was great at arranging pixels on a screen, but a chatbot cannot stand guard at your front door.

• The REALTOR® Shield: Human REALTORS® utilize secure, electronic lockbox systems. These lockboxes do not just open with a random text code; they are strictly restricted to state-licensed professionals whose identities have been verified and background-checked. Every single entry is digitally limited, tracked, and timed.

• The AI Blindspot: If the market shifts to a pure consumer-to-consumer model run by AI, physical safety vanishes. Homeowners would be forced to text digital door codes to unvetted internet strangers or open the doors themselves—exposing their properties and families to theft, vandalism, and physical danger that an algorithm cannot stop.

3. The Human Solution: Emotional Intelligence and Local Instincts

Selling a home is one of the most stressful, emotional, and financial events in a human being's life. Thompson himself admitted in his article that when early buyers rejected his home, his mood crashed, and he yearned for real human empathy that the AI's "wooden" responses simply could not provide.

• The REALTOR® Value: A REALTOR® doesn't just fill out paperwork. They act as an emotional buffer against severe stress. They bring a career's worth of hyper-local human instincts to your specific neighborhood. They know which local streets flood, which buyers are bluffing, and how to read the tense body language of a buyer during a live walkthrough.

• Managing the Chaos: A REALTOR® absorbs the frantic noise of endless phone calls, text messages, and sudden cancellations so that the seller can live their normal life instead of being glued to a smartphone screen for days.

4. The Danger of "Confident" AI Hallucinations

A massive problem with AI chatbots is that they suffer from "hallucinations"—meaning they state incorrect, illegal advice with absolute confidence. Thompson experienced this danger firsthand when his chatbot explicitly told him to put an illegal 0% commission rate on his public MLS listing. If an independent, human-managed listing company hadn't manually reviewed his file and caught the AI's illegal mistake, Thompson would have faced severe financial fines.

REALTORS® are state-licensed fiduciaries. This means they are legally bound to protect your absolute best financial and legal interests.

• Real Accountability: If a licensed human REALTOR® lies about a property, breaks a housing law, or cheats a client, they face devastating lawsuits, massive fines, and the permanent loss of their career.

• No One to Sue: A chatbot cannot be held legally responsible in a court of law. Furthermore, an anonymous internet buyer faces zero professional consequences for walking away from a contract at the last second. Relying strictly on AI drastically increases a consumer's risk of falling victim to wire fraud, deed scams, and predatory contracts that can instantly wipe out a family's life savings.

Conclusion: You Need the System, Not Just the Algorithm

Thompson’s AI experiment only succeeded because his chatbot was playing inside a safe, stable sandbox protected by the exact human real estate rules he was trying to avoid. His AI negotiation tactics only worked because the secure infrastructure of the MLS brought him legally verified buyers who were guided by licensed professionals.

AI is a fantastic tool for brainstorming text, but an algorithm cannot police human behavior, comfort a crying seller, or keep your physical property safe.

REALTORS® are not travel agents. A travel agent just books a seat on an airplane; a REALTOR® helps maintain the entire air traffic control tower. If you replace the control tower with an unmonitored AI chatbot, the whole market crashes.

PSAR is aware that a fraudulent email was sent on May 15, 2026, impersonating PSAR President Claudia Zaker. The email referenced PSAR Treasurer Michael Dullea and asked the recipient to make an urgent payment to a vendor via Zelle, Venmo, or PayPal, promising reimbursement later.

This email did not come from Claudia, Michael, or anyone at PSAR. It was sent from a spoofed address with no affiliation to our association. As far as we know, no one was defrauded.

If you received this email, delete it immediately and do not respond or send any funds. If you already sent money, contact your bank right away and report it to the FTC at reportfraud.ftc.gov.

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This Is a Common Scam - Here Is What to Watch For

Scammers spoof real names and titles to create urgency around financial requests. Watch for these red flags:

• The sender's actual email address does not match who they claim to be
• Urgent requests for money transfers or peer-to-peer payments (Zelle, Venmo, PayPal)
• Requests to keep the transaction confidential
• Pressure to act before you can verify with the person directly
• Unusual phrasing or tone from someone you know

PSAR will never ask members to transfer personal funds on our behalf. When in doubt, call us directly using a number you already have - not one provided in the email.

For more information on email fraud, visit the FBI’s Internet Crime Complaint Center at ic3.gov.

 

The ICE (formerly Black Knight) team is coming to town for the REAL Awards, and they are arriving a day early to host a special session just for PSAR members.

PARAGON CONNECT TRAINING

If you are still using "Classic" Paragon, you’re missing out on the power of a truly mobile-optimized business.  Paragon Connect is a true web application, not just a mobile solution, allowing you to use the program on almost any device. Paragon Connect includes a host of options: full property search, contact manager, hotsheet search, and more. 

 

Why Switch to Paragon Connect?

Paragon Connect isn’t just a mobile version of the software you know - it’s a faster, more intuitive way to manage your business on the go. The team will walk you through the newest tools designed to simplify your daily tasks:

• Robust Search: Pinpoint local properties with precision using an interface built for speed.
• Simple CMAs: Generate professional Comparative Market Analysis reports in seconds from your phone or tablet.
• On-the-Go Management: Maintain accurate listing data and organize client conversations from a single, easy-to-use interface.
• Maximum Efficiency: Customizable solutions designed to reduce administrative time and keep you in the field.
• Mobile Friendly App: Add, edit, and full MLS functionality on mobile devices.

 

Download for Apple or Android

         

 

For years, one of the biggest frustrations for homeowners has been the lack of control over their property’s online presence. Once a house is sold, interior photos—showing everything from the primary bedroom to the home’s security layout—often remain searchable on the internet indefinitely.

Starting February 17, 2026, a new policy is finally putting the curtains back up. The Pacific Southwest Association of REALTORS® (PSAR) is proud to announce a technical solution that will automatically remove interior photos from public search sites once a property sale is finalized.

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The power of our partnership with CRMLS

This significant shift in privacy is made possible by CRMLS, the nation’s largest and most recognized MLS. By updating their rules and infrastructure, CRMLS has paved the way for this automated solution. This change ensures that the data being shared with public-facing websites remains relevant to active listings, rather than becoming a permanent archive of a private residence.

As a PSAR member, you and your homeowners benefit directly from the industry-leading standards and technical innovation that CRMLS brings to the San Diego market.

 

 

The problem: private homes, publicly searchable

Most homeowners assume that when they buy a house, the marketing photos disappear. However, due to how data is shared through IDX (Internet Data Exchange), those photos often stay live on thousands of real estate websites long after the new owners move in.

For residents, this is a legitimate security and privacy concern:

• Home security: Interior photos can act as a blueprint for bad actors, identifying entry points and the location of valuables.
• Family privacy: Families are often uncomfortable knowing anyone can virtually walk through their private living spaces via an old listing.
• Online fraud: Scammers frequently use these persistent photos to create fake rental listings, leading to strangers showing up at a homeowner’s door.

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A new standard for San Diego

"We believe that once a house is sold, it stops being a listing and starts being a home," says Claudia Zaker, President of the Pacific Southwest Association of REALTORS®.

Through the leadership of CRMLS and our local partnership, homeowners will now have their privacy protected automatically. Starting in the first quarter of 2026, the data feed used by PSAR members will remove photos as soon as a sale closes.

The result: Every interior photo will be scrubbed from the public data feed. Only the primary exterior shot will remain on record to ensure there is a "front door" photo for historical property records and appraisals, while keeping the inside of the home private.

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What this means for PSAR members

This is a first-of-its-kind feature for San Diego, moving the responsibility of data privacy from the homeowner to the professionals. By being a REALTOR® with PSAR, you provide your homeowners with:

• Automated privacy: They no longer have to spend hours requesting various websites to remove photos of bedrooms or living areas.
• Increased security: A home's private layout is no longer a public map.
• Digital closure: Once the sale is over, the public tour officially ends.

"PSAR and CRMLS are taking the lead in San Diego to ensure private data stays private," says Zaker. "We are proud to bring this level of digital protection to our community."

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Background and technical rule change

For those interested in the specific regulatory language, Rule 19.2.4 - Display Content (IDX) has been revised. While the rule is now official, it will not be enforced until CRMLS completes the technological project of removing non-primary photos from the IDX payload and notifying all IDX vendors of these changes.

The revised rule now states:

Display Content. Participants and Subscribers shall not display confidential information fields, as determined by the MLS in the MLS’s sole discretion, such as that information intended for Buyer Brokers rather than consumers. Participants and Subscribers shall not display any photo or media other than the Primary Photo for any CRMLS Listing Record in a status of Closed/Leased, Expired, or Canceled.

 

California’s housing market has long felt like a "closed-door" policy for the middle class. However, a significant new initiative, the California Middle-Class Homeownership and Family Home Construction Act of 2026 (#25-0013), is aiming for the November 2026 ballot to change that narrative.

Proposed as a self-sustaining program with no cost to taxpayers, this initiative seeks to bridge the massive gap between renting and owning through a $25 billion revenue bond program. Here is how this landmark proposal could reshape the Golden State’s landscape for buyers, sellers, and the economy at large.

1. A Lifeline for Home Buyers and Sellers
The initiative targets the "missing middle"—families who earn too much for traditional low-income assistance but are priced out of the current market.

• For Buyers: The core of the Act is a second mortgage program administered by the California Housing Finance Agency (CalHFA).

  • Lower Entry Barriers: Borrowers only need a 3% down payment. The program provides a secondary loan covering up to 17% of the purchase price, effectively helping families reach a 20% equity stake immediately.

  • Inclusivity: It expands eligibility to those with "thin" credit files by requiring lenders to use cash flow underwriting (evaluating bank statements and rental history) if a traditional credit score falls short.

  • Affordability: Loans are required to be fixed-rate with no early payment penalties, protecting buyers from predatory lending.

• For Sellers (Builders): By stimulating demand specifically for newly constructed homes, the Act provides a guaranteed pool of qualified buyers. The "Qualified Builder Option" allows developers to certify their projects, making them more attractive to lenders and prospective homeowners.

2. Fueling the California Economy

This isn't just a social program; it's an economic engine. By authorizing $25 billion in revenue bonds, the initiative injects massive liquidity into the construction sector without dipping into the state’s general fund.

• Job Creation: The emphasis on "Family Home Construction" incentivizes the building of stand-alone homes, townhouses, and row houses. This creates a steady stream of high-paying construction jobs.

• Social Impact Investment: The program encourages "social impact investment" through low-interest bonds that qualify for Community Reinvestment Act (CRA) credit, bringing private banking capital back into local California neighborhoods.

• Market Stability: By increasing the supply of "Qualified New Homes"—including repurposed nonresidential buildings—the Act addresses the chronic inventory shortage that drives volatile price spikes.

3. Why REALTORS® Should Rally

For California REALTORS®, this initiative removes the two biggest hurdles to closing a sale: the down payment and inventory.

• Expanded Client Base: With income eligibility up to 200% of the Area Median Income (AMI), a vast majority of working California families suddenly become viable clients.

• Guaranteed Professional Involvement: In a win for the industry, the Act requires applicants to retain a licensed California real estate agent or broker to ensure consumer protection throughout the process.

• Streamlined Disputes: The "Right to Repair" provisions and limits on attorney contingency fees (capped at 30%) are designed to resolve construction disputes quickly through mediation or repair rather than years of stalled litigation, keeping the market moving.

The Politics: Who is Behind the Move?

The initiative is championed by Robert M. Hertzberg, a prominent figure in California politics and former Majority Leader of the State Senate.

The Strategy:

• The "No Taxpayer Cost" Angle: By using revenue bonds—where the loans are repaid by the homeowners, not the public—proponents are framing this as a fiscally responsible way to tackle the housing crisis.

• Labor Alignment: The Act includes robust labor enforcement standards, allowing joint labor-management committees to sue for violations like improper worker classification. This is a strategic move to gain support from organized labor.

• Legislative Flexibility: Uniquely, the Act allows the Legislature to amend the statute with a 60% vote to further its goals, ensuring the program can evolve without needing a new ballot measure every few years.

As the 2026 election approaches, expect this to be a centerpiece of the housing debate. It’s a bold attempt to prove that the California Dream of homeownership isn't dead—it just needs a better financing model.

The full text of the initiative can be read here.

The California Department of Real Estate (DRE) recently released several critical updates that every REALTOR® should review to start the new year informed and protected. From annual performance data to urgent fraud warnings, here is what you need to know.

Fall 2025 bulletin highlights (Released December 19th)

The Fall 2025 Real Estate Bulletin provides a comprehensive look at the DRE's activities over the past fiscal year.

Notable statistics from the report include:

• Audit findings: The DRE closed 347 audits, uncovering trust fund shortages totaling more than $15 million. Property management activities accounted for 89% of these shortages.
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• Enforcement actions: The department received 5,542 complaints and referred 909 cases for legal action. During this period, the DRE revoked 206 licenses and suspended 78 others.
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• Licensing trends: The total license population now stands at 424,188, a slight 2% decrease from the previous year.
• Consumer recovery: The Consumer Recovery Account paid out $379,495 to victims of real estate fraud.

Read Bulletin Here

 

Urgent advisory: vacant land scams

On December 30, 2025, the DRE issued a serious warning regarding bad actors posing as owners of vacant land. These scammers target REALTORS® to help sell property they do not own, often using fake identification.

Red flags to watch for:

• Requests to list property significantly below market value.
• Requirements for "no sign" on the property. Strong preference for cash buyers and quick closings.
• Refusal to meet in person or via video call.
• Insistence on using a specific, outside notary.
• How to protect yourself and your members: Verify the owner's identity by requesting a recent tax or utility bill.
• Conduct independent online searches to find the owner's contact information and send listing documents to the address of record via certified mail.

Read the full advisory here

 

2026 Real Estate Law update

The 2026 edition of the Real Estate Law is now live on the DRE website. This update incorporates all legislative changes effective as of January 1, 2026. We encourage all members to download the latest version to ensure full compliance with new regulations, including those involving buyer-broker agreements and digital image disclosures.

Stay vigilant and continue to provide the professional service our community expects from a REALTOR®.

See the updated Real Estate Law Information Here

 

California Department of Real Estate Takes Disciplinary Action Against Lance McHarg and Real Estate Education Provider Real Estate Trainers, Inc.

 

            

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PSAR is proud to recognize 36 members who have been honored as Honorary Members for Life by both the Pacific Southwest Association of REALTORS® and the California Association of REALTORS® (C.A.R.).

These distinguished members have each demonstrated over 25 years of dedication, integrity, and professionalism in real estate and have reached the age of 75 or older.

The 36 members include:

Violeta Barcas	Greg Hall	Hector Padilla
Rodger Barwick	Young Hall	Kathie Pelletier
Elba Beas	Rick Hoffman	Alfredo Perez
Rita Blackwood	Jose King	Sang Pham
Bob Carlseen	Bonnie Kipperman	Andrew Pheasant
Kenneth Colwell	Christopher Lewis	Pat Russiano
Mitchell Compton	Randy Lipsey, Sr.	Marilyn Schweer
Joseph Garzanelli	Carlos Lopez	Robert Smith
Lorenza Gastelum	Manuel Lopez	Carol Snyder
Alberto Gonzalez	Mark Mendillo	Gary Stous
Barbara Hahn	Dale Nicholas	Martin Weinstein
Paul Hahn	Josefina Ortiz	Gail Wilson

Congratulations to our honored members for their long-term commitment to excellence and their outstanding service to clients and the community.

As part of this recognition, the 2025 group of new honorary members will receive a waiver of PSAR and C.A.R. dues beginning in 2026. This waiver will continue for as long as they remain eligible REALTOR® members or until retirement from the profession.

Members who believe they may qualify for this honor are encouraged to contact PSAR. Please ensure your correct birthdate is entered in your membership record. An accurate birthdate is the trigger used to identify future receipients.

Applications are available on the C.A.R.website and using THIS FORM

For additional information, send an email to hmfl@car.org.

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California’s Department of Real Estate (DRE) is urging consumers to stay alert for an increase in real estate and mortgage scams targeting homebuyers, homeowners, and investors across the state.

Criminals are using increasingly sophisticated tactics, including email hacks, forged deeds, and mortgage fraud, to exploit the complexity of real estate transactions and California’s high property values. Even honest individuals can unknowingly become involved in these crimes if they fail to recognize warning signs.

The DRE outlines nine of the most common scams and provides clear steps to help consumers protect themselves. Homebuyers and property owners are encouraged to verify credentials, stay cautious during transactions, and report suspicious activity immediately.

San Diego County residents can also take an extra step to safeguard their property. The County Assessor/Recorder/County Clerk provides a free Owner Alert program that notifies property owners of any changes to property records.  It is an effective way to detect potential deed or title fraud early. Learn more and register here: Owner Alert

Read the full article from the DRE to learn how to protect yourself and your clients: Link to California DRE article

 

 

A new law, Assembly Bill 723 (AB 723),  will soon change how real estate professionals advertise properties using digitally altered images. This bill, which adds Section 10140.8 to the Business and Professions Code, was a key focus for C.A.R. (Best Practices Here)

From the start, the California Association of Realtors (CAR) was deeply engaged on this issue. CAR opposed the initial bill, arguing that it was duplicative of existing false advertising laws and created "unnecessary liability and risks unintended consequences" for members.

CAR's advocacy focused on two key problem areas:

1. Vague Definitions: The initial language risked penalizing agents for "routine, good-faith edits" like decluttering or minor corrections, which are standard industry practices. CAR pushed for a clear definition that targeted only material changes.

2. Third-Party Liability: The bill could have made licensees liable for images scraped by or posted on third-party websites that they do not control.

CAR's voice was partially agreed with. The final version of the bill includes amendments that "attempt to address opposition concerns". Specifically, the law now clearly exempts common photo-editing techniques and limits an agent's compliance burden to websites they directly control.

Here is a clear breakdown of the new law as passed best practices for compliance.

   

The Heart of the Law: What's "Altered" and What Isn't?

This law is not intended to penalize professional photography. Its goal is to stop deceptive alterations that mislead consumers about the physical reality of a property. The law itself, in BPC § 10140.8, creates a, two-part definition:

1. What IS an "Altered Image" (Disclosure Required)

A disclosure is required if an image is "altered through the use of photo editing software or artificial intelligence to add, remove, or change elements" of the real property.

This includes, but is not limited to, changes to:

• Furniture, appliances, flooring, and walls

• Fixtures, paint color, hardscape, and landscape

• Elements "outside of, or visible from, the property," such as streetlights, utility poles, views through windows, and neighboring properties

• This also includes "virtual staging" where furniture or other physical attributes are digitally added to a room.

2. What IS NOT an "Altered Image" (NO Disclosure Needed)

This is the key clarification CAR successfully lobbied for. You do not need a disclosure for "common photo editing adjustments" that "do not change the condition" or "representation" of the real property.

The law explicitly exempts:

• Lighting

• Sharpening

• White balance

• Color correction

• Angle

• Straightening

• Cropping

• Exposure

The Rule: You can make the photo look better (brighter, crisper, more true-to-life). You cannot make the property look different (new grass, no power lines, different-colored cabinets).

Disclosure Duties: How to Comply

If you use an image that meets the definition of "digitally altered," you must do the following:

1. For ALL Advertising (Print or Online): You must include a "reasonably conspicuous statement" on or next to the image disclosing that it has been altered.

2. For PRINT Advertising (Flyers, Mailers, etc.): In addition to the disclosure statement, you must also provide:

• "a link to a publicly accessible internet website, URL, or QR code that includes, and clearly identifies, the original, unaltered image".

3. For ONLINE Advertising (MLS, Website, etc.): The law provides a more direct compliance path for websites "over which the real estate broker or salesperson... has control". You have two options:

• Option A: Follow the print rule (disclosure statement + link/QR code).

• Option B: Simply "include the unaltered version of the picture" in the posting itself.

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Best Practices for Easy Compliance (Check with your Broker for Broker Specific Guidance)  CRMLS is currently evaluating this new law.

This law goes into effect on January 1st, 2026

Here is a straightforward action plan (Check with your Broker, for Broker specific rules:)

• For Print Ads:

  • Create a single, public webpage or photo gallery (like on a brokerage site or a cloud service) with all the original photos for that listing.

  • Generate a single QR code that links to that gallery.

  • On any altered photo in a flyer, add the text: "Image has been digitally altered. Scan QR code for original photos."

• For Online Ads (The Easiest Way):

  • When uploading to the MLS or a website that yor firm has control over, simply upload both versions of the photo.

  • Use the photo caption to label them clearly. This satisfies all requirements.

  • Altered Photo Caption: "Virtually Staged" or "Digitally Altered"

  • Original Photo Caption: "Original Photo - Unaltered"

By posting both labeled photos in the same gallery, you are being "reasonably conspicuous" and are "includ[ing] the unaltered version", placing you in full compliance.

Did you know?  PSAR MLS subscribers receive 30 FREE photo edits per month with REimagineHome.  Communicate your vision and bring more value to your listing. Watch a quick video overview, or get started with this helpful guide.

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Why this was pushed for: Trust and Transparency

The Consumer Federation of California pushed for this law to protect consumers from being "misled" and to give them a "true picture" of the property.

They said "Today, with the advancement of technology these tricks are easier than ever. But consumers are far too often misled by such images, only to waste their valuable time and effort when they actually see the property in person. To many consumers this feels like a bait and switch tactic, and we would argue that in some cases this is an unfair business practice."

Find C.A.R. information regarding new laws for 2026 here.

Here are the topic headings listed on the “2026 New Laws” chart by California Association of REALTORS®. You can view full descriptions and links here: 

• Advertising: Digitally-Altered Images

• Closed-loop payment system: Broker-provided form of payment accepted by vendor or referral source

• Data-broker: Broker prohibition on selling consumer personal information

• Energy: Building decarbonization: Prepaid charge disclosure

• Energy: Solar: Fire-resistant building materials; residential roofing permits

• Fire safety: Detached accessory dwelling units: Home hardening & defensible space requirement

• Housing element: Back-of-the-bill sale of certain homes built after wildfires — contractor disclosures and licensing

• Liquefied petroleum gas (LPG): Ventura County ordinance: Required LPG leak-event inspector

• Manufactured housing: Factory-built home network connection disclosure

• Nudity: Sexually-explicit or pornographic images on rental listings prohibited

• Privacy: Tenant property owner access agreements: Keys/pads access disclosure; use of biometric or facial recognition prohibited

• Private works construction: Claim resolution process for contracts with owner by contractor/subcontractor

• Real property transactions: County of Los Angeles – Wildfires: Unsolicited offers of purchase following disaster-declared homes

• Real property transactions: Preapproved plans for single-family and multifamily housing — local agency program

• Real-estate brokerage: Broker online advertising: Language preference for consumers; certain disclosures

• Renters: Rent caps and anti-demolition protections for specified units in transit-oriented and housing-forward jurisdictions

• Tax credits: Fire Safe Home Tax Credits Act (for home-hardening & vegetation management)

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Disclaimer: This blog post provides general information about AB 723 and is not intended as legal advice. For specific legal guidance regarding your obligations under Business and Professions Code Section 10140.8, please consult with your brokerage's legal counsel.

The Issue

Homeowners' insurance costs in California are climbing. In San Diego, many buyers are seeing double-digit renewal increases. For first-time buyers, these added costs can derail closings or, at a minimum, strain budgets. The impact is particularly acute for local education employees, whose salaries often lag the region’s cost of living.

FAQ at the bottom of this page.

The Solution

The Education Employee Insurance Grant provides up to $2,500 per eligible first-time homebuyer employed as an education employee in San Diego County. Funds offset homeowners' insurance during the first two years of ownership, reducing a key barrier to closing and early retention.

Why This Matters to REALTORS®

• A reason to initiate new conversations within the education community
• Addresses a real affordability hurdle that stalls transactions
• Highlights the insurance crisis in California
• An opportunity to build long-term loyalty by supporting clients beyond closing
• Demonstrates REALTOR® leadership in mitigating a pain point for local homebuyers
  
  

How REALTORS® and Education Employees Participate

• Who applies: California REALTOR® submits on the buyer’s behalf.  Only transactions with a California REALTOR® are eligible. 
• Who Benefits: Education Employees include K–12 public school teachers, school administrators, classified employees, and staff of public charter, district, or county schools. 
• When: Applications accepted for homes that closed on or after November 1st on November 1, 2025 – October 31, 2026, or until funds are fully dispersed
• What’s needed: Closing statement, proof of education-employee employment, insurance declarations, and a first-time homebuyer affidavit.
• Process: Submit the complete package to grants@psar.org. PSAR reviews within 10 business days and notifies the REALTOR® & Buyer of the decision. Checks will be mailed to the buyer's address as listed on the application.
• REALTORS® are limited to two approved grants.

Helping education employees into homeownership strengthens ties with schools, families, and neighborhoods. This grant gives REALTORS® a clear, service-driven way to remove a rising cost barrier and deepen community connections.
                      

Reel to market to clients (Download)	Reel to market to REALTORS (Download)

 

A portion of this program is funded by the C.A.R. Housing Affordability Fund.  To learn more about this fund,   or to donate, follow this link.  100% of your donation goes directly into solving the housing crisis in California. REALTORS are also encouraged to contribute during dues billing.

More Information

REALTORS® For questions, visit www.psar.org/grants or email grants@psar.org.
Media inquiries: ceo@psar.org (copy support@psar.org)

Buyers, please ask your REALTOR®