November | Real Estate 1 On The Web REAL E-DITION WWW ...scaor.org/archives/nl-11.04.pdf · On The...

REALESTATE

REALTORS® Designation...Increase your professional image ... 1

Housing Affordability Index18 percent in August; Down fivepoints from a year ago .................... 3

WCR Update This month’s speaker - J.C. Melvin 4

SCAORHFDo-Not-Fax RulesNAR Code of Ethics

SANTA CRUZ ASSOCIATION OF REALTORS®

REALESTATE

Santa Cruz County’sREAL ESTATENEWS SOURCE

On The Web

C R E A T I N G B E T T E R R E A L T O R S ®

NEWS

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Inside Real Estate

Legislative Watch

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CAPITOLA, CAPERMIT NO. 59

REALTOR®

DEPARTMENTSAffiliate News .............................3Affiliate Spotlight.......................3New Members ...........................3Did You Know?Helpful reminders and resources 15

On the CalendarSCAOR November events ............ 15

November | Real Estate 1

E-DITIONMore News atWWW.SCAOR.ORGWWW.SCAOR.ORG

SANTA CRUZ ASSOCIATION OF REALTORS®

2525 MAIN STREETSOQUEL, CA 95073

REALTOR®

N O V E M B E R 2 0 0 4

InsertLEGISLATIVEWATCH

REALTOR® Designation Awareness MonthEncourages Success and Marketability

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The Santa Cruz Association ofREALTORS® and the NATIONAL AS-SOCIATION OF REALTORS® (NAR)is pleased to announce the arrival ofREALTOR® Designation AwarenessMonth. NAR has recognized Novemberas an important month in which toencourage its members to Keep It In TheFamily by starting, completing orcontinuing an official NAR-endorseddesignation program through NAR orone of its affiliates.

An industry that moves as fast as realestate demands continuing education

throughout one’s career. A successfulagent must keep abreast on currentissues, evolving technology, changinglegalities, and many other centralcomponents of the business. To helpmembers remain up-to-date in such adynamic environment, NAR and its nineInstitutes, Societies and Councils offereighteen advanced education designationand certification programs. Althoughother designations exist, only theseeighteen carry an official NAR endorsement.

Today’s market expects the highestlevel of expertise from each REALTOR®.

NAR’s advanced education designationand certification programs, tailored tovirtually every real estate specialty, arethe means necessary to take an agent tothe next level. Beyond building skills,knowledge and productivity, theseprestigious programs enhance theprofessional image. As a result,various high-profile corporate andgovernment clients are requiringdesignations as a prerequisite forconsideration.

In both their heightened proficiencyand increased marketability, it is cleartha t REALTORS® who pursueprofessional designations have adistinct competitive edge. A 2003 NARMember Prof ile survey shows themedian gross income for agents with adesignation is $33,200 more than agentswithout. This is also true for brokers,whose median gross income is $21,800more.

All REALTORS® can increase theirprofessional image, marketability,productivity, and income through thepur suance o f a des igna t ion o rc e r t i f i c a t i o n p r o g r a m . T h eN AT I O N A L A S S O C I AT I O NO F R E A LT O R S ® s t r o n g l y en-courages its members to continue theirREALTOR® education within theofficial NAR family of designation andcertification programs. In November,as part of this initiative, NAR aims toraise awareness of the benefits of itsprograms.

For a complete list of the official NARfamily of designations and certifications,visit www.REALTOR.org/education .

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2 November | Real Estate

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AffiliateNews

AffiliateSpotlight

New Members

PresidentPeggy Gillett

President-ElectDan Sedenquist

Ex-OfficioRonnie Trubek

Secretary/TreasurerBobbie Nelson

DirectorsDan DavisDebra Frey

Janet RomanowskiDennis Stewart

Lori StrusisTrevor Thorpe

Lela WilletSuzanne Yost

RE InfoLink RepresentativeSuzanne Yost 688-7434Chief Executive Officer

Philip B. Tedesco, RCE, CAEMember Services Director

Norma I. MileteBookkeeper

Colette AlexanderReceptionist/Administrative

Leslie FlintAdministrative Assistant

Gloria SpitzerExecutive Assistant

Toni Eaton

2004 Board of Directors

Publication ManagerJanice Elrod

Graphic DesignerJeremy Van Horn

Production/Pre-pressCoastal Homes Magazine

Account ExecutiveBarbara Quinton

ADVERTISING INFORMATIONFor advertising and deadline

information please call

Barbara Quinton462-5700 ext 23

By Scott Pine, Vice Chair of theAffiliate Committee

REALTOR®REAL

ESTATEREALESTATE

S A N TA C R U Z A S S O C I AT I O N O F R E A LT O R S ®

C R E A T I N G B E T T E R R E A L T O R S®

Coastal Homes Staff


Comments about an applicant’s admittanceshould be submitted in writing to the: Santa CruzAssn. of REALTORS®, 2525 Main St., Soquel,CA 95073.

REAL ESTATE is the official monthlynewspaper of the Santa Cruz Associationo f REALTORS ® p rov ided a s amember-service to inform, educate andupdate REALTOR® and Aff iliatemembers on local, state and national realestate news and the Association’s cal-endar of events.

SANTA CRUZ ASSOCIATION OFREALTORS®

2525 Main Street, Soquel, California 95073(831) 464-2000 • (831) 464-2881fax

www.scaor.org See Affiliate News, Page 4

California’s Housing Affordability Index at18 percent in August; Down five points

from year agowell-being in the state.

The minimum household incomeneeded to purchase a median-pricedhome at $474,370 in California inAugust was $111,180, based on anaverage effective mortgage interest rateof 5.83 percent and assuming a 20 percentdown payment. The minimum householdincome needed to purchase a median-priced home was up from $93,790 inAugust 2003, when the median price ofa home was $406,140 and the prevailinginterest rate was 5.66 percent.

The minimum household incomeneeded to purchase a median-pricedhome at $190,100 in the U.S. in August2004 was $44,550.

At 42 percent, the High Desert regionwas the most affordable C.A.R. regionin the state, followed by the Sacramento

and Central Valley regions at 26 percent.The San Diego region was the leastaffordable in the state at 10 percent,followed by the Orange County regionat 11 percent. For the entire CaliforniaHousing Affordability Index, go to:www.car.org/index.php?id=MzQyMzU=

The percentage of households inCalifornia able to afford a median-pricedhome stood at 18 percent in August, a 5percentage-point decrease comparedwith the same period a year ago whenthe Index was at 23 percent, accordingto a report released today by the CaliforniaAssociation of REALTORS® (C.A.R.).The July Housing Affordability Index(HAI) declined 1 percentage-pointcompared to July, when it stood at 19percent.

C.A.R.’s monthly housing affordabilityindex measures the percentage ofhouseholds that can afford to purchasea median-priced home in California.C.A.R. also reports housing affordabilityindexes for regions and select countieswithin the state. The index is the mostfundamental measure of housing

Fall is always a wonderful time of year.We reflect on our accomplishments,goad ourselves to complete unfinishedgoals and begin planning for our successin the coming year. For most of us thisplanning includes personal goals as wellas professional associat ion andcommunity involvement. Fortunatelythe holidays provide a welcomedistraction shifting our priorities tofamily and friends. Speaking of holidayactivities, be sure to put the followingdates in your calendar: SCAORHoliday Open House on Wednesday,December 1st and the SCAOR Board ofDirectors Installation Dinner on Friday,December 10th.

Last month we elaborated on stepstaken to fully integrate the AffiliateCommittee and their associatedactivities. As part of this process theAff iliate Committee was asked tocontinue with their current programs aswell as undertaking efforts to addressnew directions laid out in the SCAORStrategic Plan. The two areas of focuswere the structural integration and theassimilation of Strategic Plan initiativesand Affiliate directions.

In looking at the structural integrationit became apparent some disparities

American Dream Realty

Julie Gronbach

Cal-Coast Realty and Lending

Cheryl Hinchman

Century 21 Lad Realty

June Parker

Century 21 Showcase REALTORS®

Rhonda Obert

Coldwell Banker Residential Brokerage

Shannon Kies

Jerid Kiedrowski

Joel Koch

Homecite Realty

Sean McMenamin

The Office of Bernice Jacobs, REALTOR®

Steve Sierra

Monterey Bay Properties

Elizabeth Heffner

Network Alliance Real Estate

Eudora Sanders

Re/Max Real Estate Services

Joan Armstrong

Tristar

Victor Freeman

Thunderbird Real Estate

Ed Gagne

Vanguard REALTORS®

Michele Replogle

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By Denean Richards, BusinessDevelopment Manager

Greg Rufe, JCP Geologists has led thedisclosure industry for almost 30 years.If you haven’t ordered a JCP Reportlately, here are just a few reasons whyyou should.

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Affiliate News...continued from page 10existed regarding committee andSCAOR Board participation. Thecommittee situation was settled ratherquickly with the decision to encourageAffiliates to participate on any committeeexcept Grievance, Professional Standards,Budget and Strategic Planning. However,new efforts are underway to removelimitations on Budget and Strategic PlanCommittee participation. CurrentlyAff i l i a tes par t i c ipa te on manycommittees including Education andMarketing & Public Relations.

As the participation of Affiliates onthe Board of Directors is quite complicatedand emotional, a dialogue was initiated.Over the course of the past 12 monthsinput has been solicited from manyavailable sources. Additionally, some ini-tial research was conducted regardingother REALTOR® Associations andAff iliate participation models. In anumber of cases Affiliates held board seats.

Moving forward in 2005 a number ofactivities have been identified providinga venue for increased information flow.By involving more people and diggingdeeply into all the relevant issues wee x p e c t t o d e v e l o p w o r k a b l er e c o m m e n dations. Our Decembernewsletter will outline Aff iliateCommittee Strategic directions for 2005.

NAR secures delayed effectivedate for do-not-fax rulesNAR, with help from state associationsnationwide, has successfully secured asix-month delay in the effective date ofnew do-not-fax rules from the FederalCommunications Commission (FCC).The extension, which expires June 30,2005, was granted to give Congress moretime to act on the Junk Fax Prevention Act,H.R. 4600/S. 2603, bipartisan legislationNAR has been pushing that wouldmitigate the problems created by newdo-not-fax rules for consumers and businessesalike. NAR supports efforts to limitunsolicited faxes, including a requirementto obtain permission before sending faxes,but believes that the FCC went too far byrequiring signed, written permission for faxes.The association estimates that over 67million permission forms would have had tohave been created and stored to sustain themore than 6 million home sales transactionsthat occurred last year. For more information,visit: www.realtor.org/rocms.nsf

WCR UPDATE:November Business ResourceMeeting

*Escrow must close within 12 months of date of purchase OAC

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Come to First Net Mortgageand SCAOR Housing Foundation“Prime Thursday” at Michael’s on Main inSoquel Thursday, December 2 from 5:00 to7:00 pm. Come and join us and bring a guestto see what the SCAOR HousingFoundation is all about.Mission: Our purpose is to assist residentsof our community in realizing the dream ofhomeownership in Santa Cruz County byproviding education, financial programs,and by supporting organizations whoembrace our goals.Vision: Bridging the gap tohomeownership.We hope that you will come join usand will consider assisting in thedevelopment of SCAORHF at thiscrit ical t ime. We are asking ourSCAOR REALTORS® and Aff iliatesto consider making a monetarycontribution this year, to help build abase from which to operate. Anyamount that you are comfortablecontributing will greatly assist us atthis time. Funds will be used to providepurchasing assistance to low incomeparticipants locally. For the remainderof 2004—our first year in operationall contributors who donate $100 ormore will be recognized as a “CharterContr ibutor” of the Santa CruzAssociation of REALTORS® HousingFoundation. Come join us!!!!!

This month’s November Business ResourceMeeting with renowned motivationalspeaker and trainer, J.C. Melvin (ABR,CRS, GRI, LTG & ITI), will empower youto reach for your potential through the de-velopment of your personal Mission State-ment. RESERVATIONS REQUIREDBY Friday, November 12, 2004. RSVPby going to the following website link: http://www.wcrsantacruz.org/upcoming.asp Orcontact Jennifer Walker, Century 21 Showcaseat 831-345-3675. Cost is $30 for Members/ $50 Non-Members. Members, bring aguest wishing to join WCR and they willreceive 14 months membership at the 1 yearmember price of $135. This business meetingis sponsored by Santa Cruz Mortgage andCorcoran Chimney Cleaning.

Wednesday, November 17, 20048:15 a.m. to 12:30 p.m.Coast Santa Cruz Hotel


Support.“Working for David Lyng has enriched my business. I have beenin real estate for 17 years, active in C.A.R. and have yet to seeanother company so professional and centered on the successof their agents and clients.”

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Marketing.“I think the thing that has most impressed me and my clients aboutDavid Lyng Real Estate is the wonderfully innovative marketing.”

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Success.“Joining the David Lyng family has had an extremely positive effecton my business. It has literally catapulted my business to the nextlevel, and I have received an overwhelming response from thebuyers and the sellers.”

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Aptos Village8050 Soquel Ave.Aptos, CA 95003831.662.0800

Capitola Village301 Capitola Ave.Capitola, CA 95010831.475.8111

Santa Cruz2170 41st AvenueCapitola, CA 95010831.476.0100

Scotts Valley101 Mt. Hermon Rd.Scotts Valley, CA 95066831.461.1200

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Effective January 1, 2004Where the word REALTORS® is used in

this Code and Preamble, it shall bedeemed to include REALTOR-ASSOCIATE®s.While the Code of Ethics establishes

obligations that may be higher than thosemandated by law, in any instance wherethe Code of Ethics and the law conflict,the obligations of the law must take pre-cedence.

PreambleUnder all is the land. Upon its wise uti-

lization and widely allocated ownershipdepend the survival and growth of freeinstitutions and of our civilization. RE-ALTORS® should recognize that the inter-ests of the nation and its citizens requirethe highest and best use of the land andthe widest distribution of land owner-ship. They require the creation of ad-equate housing, the building of function-ing cities, the development of produc-tive industries and farms, and the pres-ervation of a healthful environment.Such interests impose obligations be-

yond those of ordinary commerce. Theyimpose grave social responsibility and apatriotic duty to which REALTORS® shoulddedicate themselves, and for which theyshould be diligent in preparing them-selves. REALTORS®, therefore, are zealousto maintain and improve the standardsof their calling and share with their fel-low REALTORS® a common responsibil-ity for its integrity and honor.In recognition and appreciation of their

obligations to clients, customers, thepublic, and each other, REALTORS® con-tinuously strive to become and remaininformed on issues affecting real estateand, as knowledgeable professionals,they willingly share the fruit of their ex-perience and study with others. Theyidentify and take steps, through enforce-ment of this Code of Ethics and by as-sisting appropriate regulatory bodies, toeliminate practices which may damagethe public or which might discredit orbring dishonor to the real estate profes-sion. REALTORS® having direct personalknowledge of conduct that may violatethe Code of Ethics involving misappro-priation of client or customer funds orproperty, willful discrimination, or fraudresulting in substantial economic harm,bring such matters to the attention of theappropriate Board or Association of RE-ALTORS®. (Amended 1/00)Realizing that cooperation with other

real estate professionals promotes thebest interests of those who utilize theirservices, REALTORS® urge exclusive rep-resentation of clients; do not attempt to

Code of Ethics and Standards of Practice of the National Association of REALTORS®

gain any unfair advantage over theircompetitors; and they refrain from mak-ing unsolicited comments about otherpractitioners. In instances where theiropinion is sought, or where REALTORS®

believe that comment is necessary, theiropinion is offered in an objective, pro-fessional manner, uninfluenced by anypersonal motivation or potential advan-tage or gain.The term REALTOR® has come to con-

note competency, fairness, and high in-tegrity resulting from adherence to alofty ideal of moral conduct in businessrelations. No inducement of profit andno instruction from clients ever can jus-tify departure from this ideal.In the interpretation of this obligation,

REALTORS® can take no safer guide thanthat which has been handed downthrough the centuries, embodied in theGolden Rule, “Whatsoever ye would thatothers should do to you, do ye even so tothem.”Accepting this standard as their own,

REALTORS® pledge to observe its spirit inall of their activities and to conduct theirbusiness in accordance with the tenetsset forth below.

Duties to Clients andCustomers

Article 1When representing a buyer, seller, land-

lord, tenant, or other client as an agent,REALTORS® pledge themselves to protectand promote the interests of their client.This obligation to the client is primary,but it does not relieve REALTORS® of theirobligation to treat all parties honestly.When serving a buyer, seller, landlord,tenant or other party in a non-agency ca-pacity, REALTORS® remain obligated totreat all parties honestly. (Amended 1/01)

• Standard of Practice 1-1REALTORS®, when acting as principals ina real estate transaction, remain obligatedby the duties imposed by the Code ofEthics. (Amended 1/93)

• Standard of Practice 1-2The duties the Code of Ethics imposesare applicable whether REALTORS® areacting as agents or in legally recognizednon-agency capacities except that anyduty imposed exclusively on agents bylaw or regulation shall not be imposedby this Code of Ethics on REALTORS® act-ing in non-agency capacities.As used in this Code of Ethics, “client”means the person(s) or entity(ies) with

whom a REALTOR® or a REALTOR®’s firmhas an agency or legally recognized non-agency relationship; “customer” meansa party to a real estate transaction whoreceives information, services, or ben-efits but has no contractual relationshipwith the REALTOR® or the REALTOR®’sfirm; “prospect” means a purchaser,seller, tenant, or landlord who is not sub-ject to a representation relationship withthe REALTOR® or REALTOR®’s f irm;“agent” means a real estate licensee (in-cluding brokers and sales ASSOCIATEs)acting in an agency relationship as de-fined by state law or regulation; and“broker” means a real estate licensee (in-cluding brokers and sales Associates)acting as an agent or in a legally recog-nized non-agency capacity. (Adopted 1/95, Amended 1/04)

• Standard of Practice 1-3REALTORS®, in attempting to secure a list-ing, shall not deliberately mislead theowner as to market value.

• Standard of Practice 1-4REALTORS®, when seeking to become abuyer/tenant representative, shall notmislead buyers or tenants as to savingsor other benefits that might be realizedthrough use of the REALTOR®’s services.(Amended 1/93)

• Standard of Practice 1-5REALTORS® may represent the seller/land-lord and buyer/tenant in the same trans-action only after full disclosure to andwith informed consent of both parties.(Adopted 1/93)

• Standard of Practice 1-6REALTORS® shall submit offers andcounter-offers objectively and as quicklyas possible. (Adopted 1/93, Amended 1/95)

• Standard of Practice 1-7When acting as listing brokers, REAL-TORS® shall continue to submit to theseller/landlord all offers and counter-of-fers until closing or execution of a leaseunless the seller/landlord has waived thisobligation in writing. REALTORS® shall notbe obligated to continue to market theproperty after an offer has been acceptedby the seller/landlord. REALTORS® shallrecommend that sellers/landlords obtainthe advice of legal counsel prior to ac-ceptance of a subsequent offer exceptwhere the acceptance is contingent onthe termination of the pre-existing pur-chase contract or lease. (Amended 1/93)

• Standard of Practice 1-8REALTORS®, acting as agents or brokersof buyers/tenants, shall submit to buy-ers/tenants all offers and counter-offers

until acceptance but have no obligationto continue to show properties to theirclients after an offer has been acceptedunless otherwise agreed in writing. RE-ALTORS®, acting as agents or brokers ofbuyers/tenants, shall recommend thatbuyers/tenants obtain the advice of le-gal counsel if there is a question as towhether a pre-existing contract has beenterminated. (Adopted 1/93, Amended 1/99)

• Standard of Practice 1-9The obligation of REALTORS® to preserveconfidential information (as defined bystate law) provided by their clients in thecourse of any agency relationship or non-agency relationship recognized by lawcontinues after termination of agencyrelationships or any non-agency relation-ships recognized by law. REALTORS® shallnot knowingly, during or following thetermination of professional relationshipswith their clients:

1) reveal confidential information ofclients; or

2) use confidential information ofclients to the disadvantage ofclients; or

3) use confidential information of clients for the REALTOR®’s advantage orthe advantage of third parties unless:a) clients consent after fulldisclosure; or

b) REALTORS® are required by courtorder; or

c) it is the intention of a client tocommit a crime and theinformation is necessary toprevent the crime;or

d) it is necessary to defend aREALTOR® or the REALTOR®’semployees or ASSOCIATEs against anaccusation of wrongful conduct.

Information concerning latent materialdefects is not considered confidentialinformation under this Code of Ethics.(Adopted 1/93, Amended 1/01)

• Standard of Practice 1-10REALTORS® shall, consistent with theterms and conditions of their real estatelicensure and their property managementagreement, competently manage theproperty of clients with due regard forthe rights, safety and health of tenantsand others lawfully on the premises.(Adopted 1/95, Amended 1/00)

• Standard of Practice 1-11REALTORS® who are employed to main-tain or manage a client’s property shallexercise due diligence and make reason-able efforts to protect it against reason-ably foreseeable contingencies and


losses. (Adopted 1/95)

• Standard of Practice 1-12When entering into listing contracts,REALTORS® must advise sellers/landlordsof:1) the REALTOR®’s company policies

regarding cooperation and theamount(s) of any compensation thatwill be offered to subagents, buyer/tenant agents, and/or brokers actingin legally recognized non-agencycapacities;

2) the fact that buyer/tenant agents orbrokers, even if compensated bylisting brokers, or by sellers/landlordsmay represent the interests ofbuyers/tenants; and

3) any potential for listing brokers toact as disclosed dual agents, e.g.buyer/tenant agents. (Adopted 1/93,Renumbered 1/98, Amended 1/03)

• Standard of Practice 1-13When entering into buyer/tenant agree-ments, REALTORS® must advise potentialclients of:1) the REALTOR®’s company policies

regarding cooperation;2) the amount of compensation to be

paid by the client;3) the potential for additional or

offsetting compensation from otherbrokers, from the seller or landlord,or from other parties; and

4) any potential for the buyer/tenantrepresentative to act as a discloseddual agent, e.g. listing broker,subagent, landlord’s agent, etc.(Adopted 1/93, Renumbered 1/98,Amended 1/04)

• Standard of Practice 1-14Fees for preparing appraisals or othervaluations shall not be contingent uponthe amount of the appraisal or valuation.(Adopted 1/02)

• Standard of Practice 1-15REALTORS®, in response to inquiries frombuyers or cooperating brokers shall, withthe sellers’ approval, divulge the exist-ence of offers on the property. (Adopted1/03)

Article 2REALTORS® shall avoid exaggeration,

misrepresentation, or concealment ofpertinent facts relating to the propertyor the transaction. REALTORS® shall not,however, be obligated to discover latentdefects in the property, to advise on mat-ters outside the scope of their real estatelicense, or to disclose facts which areconfidential under the scope of agencyor non-agency relationships as definedby state law. (Amended 1/00)

• Standard of Practice 2-1REALTORS® shall only be obligated to dis-cover and disclose adverse factors rea-sonably apparent to someone with ex-pertise in those areas required by their

real estate licensing authority. Article 2does not impose upon the REALTOR® theobligation of expertise in other profes-sional or technical disciplines.(Amended 1/96)

• Standard of Practice 2-2(Renumbered as Standard of Practice1-12 1/98)

• Standard of Practice 2-3 (Renumbered as Standard of Practice 1-13 1/98)

• Standard of Practice 2-4REALTORS® shall not be parties to thenaming of a false consideration in anydocument, unless it be the naming of anobviously nominal consideration.

• Standard of Practice 2-5Factors defined as “non-material” by lawor regulation or which are expressly ref-erenced in law or regulation as not be-ing subject to disclosure are considerednot “pertinent” for purposes of Article2. (Adopted 1/93)

Article 3REALTORS® shall cooperate with other

brokers except when cooperation is notin the client’s best interest. The obliga-tion to cooperate does not include theobligation to share commissions, fees,or to otherwise compensate another bro-ker. (Amended 1/95)

• Standard of Practice 3-1REALTORS®, acting as exclusive agents orbrokers of sellers/ landlords, establish theterms and conditions of offers to coop-erate. Unless expressly indicated in of-fers to cooperate, cooperating brokersmay not assume that the offer of coop-eration includes an offer of compensa-tion. Terms of compensation, if any, shallbe ascertained by cooperating brokersbefore beginning efforts to accept theoffer of cooperation. (Amended 1/99)

• Standard of Practice 3-2REALTORS® shall, with respect to offersof compensation to another REALTOR®,timely communicate any change of com-pensation for cooperative services to theother REALTOR® prior to the time suchREALTOR® produces an offer to purchase/lease the property. (Amended 1/94)

• Standard of Practice 3-3Standard of Practice 3-2 does not pre-clude the listing broker and cooperatingbroker from entering into an agreementto change cooperative compensation.(Adopted 1/94)

• Standard of Practice 3-4REALTORS®, acting as listing brokers, havean affirmative obligation to disclose theexistence of dual or variable rate com-mission arrangements (i.e., listingswhere one amount of commission is pay-able if the listing broker’s firm is the pro-curing cause of sale/lease and a differ-

ent amount of commission is payable ifthe sale/lease results through the effortsof the seller/landlord or a cooperatingbroker). The listing broker shall, as soonas practical, disclose the existence ofsuch arrangements to potential cooper-ating brokers and shall, in response toinquiries from cooperating brokers, dis-close the differential that would resultin a cooperative transaction or in a sale/lease that results through the efforts ofthe seller/landlord. If the cooperatingbroker is a buyer/tenant representative,the buyer/tenant representative must dis-close such information to their clientbefore the client makes an offer to pur-chase or lease. (Amended 1/02)

• Standard of Practice 3-5It is the obligation of subagents topromptly disclose all pertinent facts tothe principal’s agent prior to as well asafter a purchase or lease agreement isexecuted. (Amended 1/93)

• Standard of Practice 3-6REALTORS® shall disclose the existence ofaccepted offers, including offers with un-resolved contingencies, to any brokerseeking cooperation. (Adopted 5/86,Amended 1/04)

• Standard of Practice 3-7When seeking information from anotherREALTOR® concerning property under amanagement or listing agreement, RE-ALTORS® shall disclose their REALTOR® sta-tus and whether their interest is personalor on behalf of a client and, if on behalfof a client, their representational status.(Amended 1/95)

• Standard of Practice 3-8REALTORS® shall not misrepresent theavailability of access to show or inspecta listed property. (Amended 11/87)

Article 4REALTORS® shall not acquire an interest

in or buy or present offers from them-selves, any member of their immediatefamilies, their firms or any memberthereof, or any entities in which they haveany ownership interest, any real propertywithout making their true positionknown to the owner or the owner’s agentor broker. In selling property they own,or in which they have any interest, RE-ALTORS® shall reveal their ownership orinterest in writing to the purchaser or thepurchaser’s representative. (Amended 1/00)

• Standard of Practice 4-1For the protection of all parties, the dis-closures required by Article 4 shall be inwriting and provided by REALTORS® priorto the signing of any contract. (Adopted2/86)

Article 5REALTORS® shall not undertake to provide

professional services concerning a prop-erty or its value where they have apresent or contemplated interest unlesssuch interest is specifically disclosed toall affected parties.

Article 6REALTORS® shall not accept any commis-

sion, rebate, or profit on expendituresmade for their client, without the client’sknowledge and consent.When recommending real estate prod-

ucts or services (e.g., homeowner’s in-surance, warranty programs, mortgagefinancing, title insurance, etc.), REAL-TORS® shall disclose to the client or cus-tomer to whom the recommendation ismade any financial benefits or fees, otherthan real estate referral fees, the REAL-TOR® or REALTOR®’s firm may receive asa direct result of such recommendation.(Amended 1/99)

• Standard of Practice 6-1REALTORS® shall not recommend or sug-gest to a client or a customer the use ofservices of another organization or busi-ness entity in which they have a directinterest without disclosing such interestat the time of the recommendation orsuggestion. (Amended 5/88)

Article 7In a transaction, REALTORS® shall not ac-

cept compensation from more than oneparty, even if permitted by law, withoutdisclosure to all parties and the informedconsent of the REALTOR®’s client or cli-ents. (Amended 1/93)

Article 8REALTORS® shall keep in a special ac-

count in an appropriate financial insti-tution, separated from their own funds,monies coming into their possession intrust for other persons, such as escrows,trust funds, clients’ monies, and otherlike items.

Article 9REALTORS®, for the protection of all par-

ties, shall assure whenever possible thatall agreements related to real estate trans-actions including, but not limited to, list-ing and representation agreements, pur-chase contracts, and leases are in writ-ing in clear and understandable languageexpressing the specific terms, condi-tions, obligations and commitments ofthe parties. A copy of each agreementshall be furnished to each party to suchagreements upon their signing or initial-ing. (Amended 1/04)

• Standard of Practice 9-1For the protection of all parties, REAL-TORS® shall use reasonable care to ensurethat documents pertaining to the pur-chase, sale, or lease of real estate are keptSee Code of Ethics and Standards, Page 8


current through the use of written exten-sions or amendments. (Amended 1/93)

Duties to the Public

Article 10REALTORS® shall not deny equal profes-

sional services to any person for reasonsof race, color, religion, sex, handicap,familial status, or national origin. REAL-TORS® shall not be parties to any plan oragreement to discriminate against a per-son or persons on the basis of race, color,religion, sex, handicap, familial status,or national origin. (Amended 1/90)REALTORS®, in their real estate employ-

ment practices, shall not discriminateagainst any person or persons on the ba-sis of race, color, religion, sex, handi-cap, familial status, or national origin.(Amended 1/00)

• Standard of Practice 10-1REALTORS® shall not volunteer informa-tion regarding the racial, religious or eth-nic composition of any neighborhoodand shall not engage in any activitywhich may result in panic selling. REAL-TORS® shall not print, display or circu-late any Article 11The services which REALTORS® provideto their clients and customers shall con-form to the standards of practice andcompetence which are reasonably ex-pected in the specific real estate disci-plines in which they engage; specifically,residential real estate brokerage, realproperty management, commercial andindustrial real estate brokerage, real es-tate appraisal, real estate counseling, realestate syndication, real estate auction,and international real estate.REALTORS® shall not undertake to pro-

vide specialized professional servicesconcerning a type of property or servicethat is outside their field of competenceunless they engage the assistance of onewho is competent on such types of prop-erty or service, or unless the facts arefully disclosed to the client. Any personsengaged to provide such assistance shallbe so identified to the client and theircontribution to the assignment should beset forth. (Amended 1/95)

• Standard of Practice 11-1When REALTORS® prepare opinions ofreal property value or price, other thanin pursuit of a listing or to assist a po-tential purchaser in formulating a pur-chase offer, such opinions shall includethe following:

1) identification of the subjectproperty

2) date prepared3) defined value or price4) limiting conditions, including

statements of purpose(s) andintended user(s)

5) any present or contemplatedinterest, including the possibility ofrepresenting the seller/landlord orbuyers/tenants

6) basis for the opinion, includingapplicable market data

7) if the opinion is not an appraisal, astatement to that effect (Amended 1/01)

• Standard of Practice 11-2The obligations of the Code of Ethics inrespect of real estate disciplines otherthan appraisal shall be interpreted andapplied in accordance with the standardsof competence and practice which cli-ents and the public reasonably requireto protect their rights and interests con-sidering the complexity of the transac-tion, the availability of expert assistance,and, where the REALTOR® is an agent orsubagent, the obligations of a fiduciary.(Adopted 1/95)

• Standard of Practice 11-3When REALTORS® provide consultive ser-vices to clients which involve advice orcounsel for a fee (not a commission),such advice shall be rendered in an ob-jective manner and the fee shall not becontingent on the substance of the ad-vice or counsel given. If brokerage ortransaction services are to be providedin addition to consultive services, a sepa-rate compensation may be paid with prioragreement between the client and REAL-TOR®. (Adopted 1/96)

• Standard of Practice 11-4The competency required by Article 11relates to services contracted for betweenREALTORS® and their clients or custom-ers; the duties expressly imposed by theCode of Ethics; and the duties imposedby law or regulation. (Adopted 1/02)

Article 12REALTORS® shall be careful at all times topresent a true picture in their advertis-ing and representations to the public. RE-ALTORS® shall also ensure that their pro-fessional status (e.g., broker, appraiser,property manager, etc.) or status as RE-ALTORS® is clearly identifiable in any suchadvertising. (Amended 1/93)

• Standard of Practice 12-1REALTORS® may use the term “free” andsimilar terms in their advertising and inother representations provided that allterms governing availability of the of-fered product or service are clearly dis-closed at the same time. (Amended 1/97)

• Standard of Practice 12-2REALTORS® may represent their servicesas “free” or without cost even if theyexpect to receive compensation from asource other than their client provided

...continued from page 7

See Code of Ethics and Standards, Page 10

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...continued from page 8that the potential for the REALTOR® toobtain a benefit from a third party isclearly disclosed at the same time.(Amended 1/97)

• Standard of Practice 12-3The offering of premiums, prizes, mer-chandise discounts or other inducementsto list, sell, purchase, or lease is not, initself, unethical even if receipt of thebenefit is contingent on listing, selling,purchasing, or leasing through the RE-ALTOR® making the offer. However, RE-ALTORS® must exercise care and candorin any such advertising or other publicor private representations so that anyparty interested in receiving or otherwisebenefiting from the REALTOR®’s offer willhave clear, thorough, advance under-standing of all the terms and conditionsof the offer. The offering of any induce-ments to do business is subject to thelimitations and restrictions of state lawand the ethical obligations established byany applicable Standard of Practice.(Amended 1/95)

• Standard of Practice 12-4REALTORS® shall not offer for sale/leaseor advertise property without authority.When acting as listing brokers or as sub-agents, REALTORS® shall not quote a pricedifferent from that agreed upon with the

Code of Ethics and Standardsseller/landlord. (Amended 1/93)

• Standard of Practice 12-5REALTORS® shall not advertise nor permitany person employed by or affiliatedwith them to advertise listed propertywithout disclosing the name of the firm.(Adopted 11/86)

• Standard of Practice 12-6REALTORS®, when advertising unlistedreal property for sale/lease in which theyhave an ownership interest, shall disclosetheir status as both owners/landlords andas REALTORS® or real estate licensees.(Amended 1/93)

• Standard of Practice 12-7Only REALTORS® who participated in thetransaction as the listing broker or co-operating broker (selling broker) mayclaim to have “sold” the property. Priorto closing, a cooperating broker may posta “sold” sign only with the consent ofthe listing broker. (Amended 1/96)

Article 13REALTORS® shall not engage in activitiesthat constitute the unauthorized prac-tice of law and shall recommend thatlegal counsel be obtained when the in-terest of any party to the transactionrequires it.

Article 14If charged with unethical practice orasked to present evidence or to cooper-ate in any other way, in any professionalstandards proceeding or investigation,REALTORS® shall place all pertinent factsbefore the proper tribunals of the Mem-ber Board or affiliated institute, society,or council in which membership is heldand shall take no action to disrupt orobstruct such processes. (Amended 1/99)

• Standard of Practice 14-1REALTORS® shall not be subject to disci-plinary proceedings in more than oneBoard of REALTORS® or affiliated insti-tute, society or council in which theyhold membership with respect to allegedviolations of the Code of Ethics relatingto the same transaction or event.(Amended 1/95)

• Standard of Practice 14-2REALTORS® shall not make any unautho-rized disclosure or dissemination of theallegations, findings, or decision devel-oped in connection with an ethics hear-ing or appeal or in connection with anarbitration hearing or procedural review.(Amended 1/92)

• Standard of Practice 14-3REALTORS® shall not obstruct the Board’sinvestigative or professional standards

proceedings by instituting or threaten-ing to institute actions for libel, slanderor defamation against any party to a pro-fessional standards proceeding or theirwitnesses based on the filing of an arbi-tration request, an ethics complaint, ortestimony given before any tribunal.(Adopted 11/87, Amended 1/99)

• Standard of Practice 14-4REALTORS® shall not intentionally impedethe Board’s investigative or disciplinaryproceedings by filing multiple ethicscomplaints based on the same event ortransaction. (Adopted 11/88)Duties to REALTORS®

Article 15REALTORS® shall not knowingly or reck-lessly make false or misleading state-ments about competitors, their busi-nesses, or their business practices.(Amended 1/92)

• Standard of Practice 15-1REALTORS® shall not knowingly or reck-lessly file false or unfounded ethics com-plaints. (Adopted 1/00)

Article 16REALTORS® shall not engage in any prac-tice or take any action inconsistent withSee Code of Ethics and Standards, Page 12


exclusive representation or exclusivebrokerage relationship agreements thatother REALTORS® have with clients.(Amended 1/04)

• Standard of Practice 16-1Article 16 is not intended to prohibitaggressive or innovative business prac-tices which are otherwise ethical anddoes not prohibit disagreements withother REALTORS® involving commission,fees, compensation or other forms ofpayment or expenses. (Adopted 1/93,Amended 1/95)

• Standard of Practice 16-2Article 16 does not preclude REALTORS®

from making general announcements toprospects describing their services andthe terms of their availability eventhough some recipients may have enteredinto agency agreements or other exclu-sive relationships with another REALTOR®.A general telephone canvass, generalmailing or distribution addressed to allprospects in a given geographical areaor in a given profession, business, club,or organization, or other classificationor group is deemed “general” for pur-poses of this standard. (Amended 1/04)

Article 16is intended to recognize as unethical two

basic types of solicitations:First, telephone or personal solicitations

of property owners who have been iden-tified by a real estate sign, multiple list-ing compilation, or other informationservice as having exclusively listed theirproperty with another REALTOR®; andSecond, mail or other forms of written

solicitations of prospects whose proper-ties are exclusively listed with anotherREALTOR® when such solicitations are notpart of a general mailing but are directedspecifically to property owners identi-fied through compilations of current list-ings, “for sale” or “for rent” signs, orother sources of information required byArticle 3 and Multiple Listing Servicerules to be made available to other RE-ALTORS® under offers of subagency orcooperation. (Amended 1/04)

• Standard of Practice 16-3Article 16 does not preclude REALTORS®

from contacting the client of another bro-ker for the purpose of offering to pro-vide, or entering into a contract to pro-vide, a different type of real estate ser-vice unrelated to the type of service cur-rently being provided (e.g., propertymanagement as opposed to brokerage)or from offering the same type of ser-vice for property not subject to otherbrokers’ exclusive agreements. However,information received through a Multiple


Code of Ethics and Standards

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Listing Service or any other offer of co-operation may not be used to target cli-ents of other REALTORS® to whom suchoffers to provide services may be made.(Amended 1/04)

• Standard of Practice 16-4REALTORS® shall not solicit a listing whichis currently listed exclusively with an-other broker. However, if the listing bro-ker, when asked by the REALTOR®, refusesto disclose the expiration date and na-ture of such listing; i.e., an exclusiveright to sell, an exclusive agency, openlisting, or other form of contractualagreement between the listing broker andthe client, the REALTOR® may contact theowner to secure such information andmay discuss the terms upon which theREALTOR® might take a future listing or,alternatively, may take a listing to be-come effective upon expiration of anyexisting exclusive listing. (Amended 1/94)

• Standard of Practice 16-5REALTORS® shall not solicit buyer/tenantagreements from buyers/tenants who aresubject to exclusive buyer/tenant agree-ments. However, if asked by a REALTOR®,the broker refuses to disclose the expi-ration date of the exclusive buyer/tenantagreement, the REALTOR® may contact thebuyer/tenant to secure such informationand may discuss the terms upon whichthe REALTOR® might enter into a futurebuyer/tenant agreement or, alternatively,may enter into a buyer/tenant agreementto become effective upon the expirationof any existing exclusive buyer/tenantagreement. (Adopted 1/94, Amended 1/98)

• Standard of Practice 16-6When REALTORS® are contacted by theclient of another REALTOR® regarding thecreation of an exclusive relationship toprovide the same type of service, andREALTORS® have not directly or indirectlyinitiated such discussions, they may dis-cuss the terms upon which they mightenter into a future agreement or, alter-natively, may enter into an agreementwhich becomes effective upon expirationof any existing exclusive agreement.(Amended 1/98)

• Standard of Practice 16-7The fact that a prospect has retained aREALTOR® as an exclusive representativeor exclusive broker in one or more pasttransactions does not preclude other RE-ALTORS® from seeking such prospect’sfuture business. (Amended 1/04)

• Standard of Practice 16-8The fact that an exclusive agreement hasbeen entered into with a REALTOR® shallnot preclude or inhibit any other REAL-TOR® from entering into a similar agree-ment after the expiration of the prioragreement. (Amended 1/98)

• Standard of Practice 16-9

REALTORS®, prior to entering into a rep-resentation agreement, have an affirma-tive obligation to make reasonable effortsto determine whether the prospect is sub-ject to a current, valid exclusive agree-ment to provide the same type of realestate service. (Amended 1/04)

• Standard of Practice 16-10REALTORS®, acting as buyer or tenant rep-resentatives or brokers, shall disclose thatrelationship to the seller/landlord’s rep-resentative or broker at first contact andshall provide written confirmation of thatdisclosure to the seller/landlord’s repre-sentative or broker not later than execu-tion of a purchase agreement or lease.(Amended 1/04)

• Standard of Practice 16-11On unlisted property, REALTORS® actingas buyer/tenant representatives or bro-kers shall disclose that relationship to theseller/landlord at first contact for thatbuyer/tenant and shall provide writtenconfirmation of such disclosure to theseller/landlord not later than executionof any purchase or lease agreement.(Amended 1/04)

REALTORS® shall make any request foranticipated compensation from theseller/ landlord at f irst contact.(Amended 1/98)

• Standard of Practice 16-12REALTORS®, acting as representatives orbrokers of sellers/landlords or as sub-agents of listing brokers, shall disclosethat relationship to buyers/tenants assoon as practicable and shall providewritten confirmation of such disclosureto buyers/tenants not later than execu-tion of any purchase or lease agreement.(Amended 1/04)

• Standard of Practice 16-13All dealings concerning property exclu-sively listed, or with buyer/tenants whoare subject to an exclusive agreementshall be carried on with the client’s rep-resentative or broker, and not with theclient, except with the consent of theclient’s representative or broker or ex-cept where such dealings are initiated bythe client.

Before providing substantive services(such as writing a purchase offer or pre-senting a CMA) to prospects, REALTORS®

shall ask prospects whether they are aparty to any exclusive representationagreement. REALTORS® shall not know-ingly provide substantive services con-cerning a prospective transaction to pros-pects who are parties to exclusive repre-sentation agreements, except with theconsent of the prospects’ exclusive rep-resentatives or at the direction of pros-pects. (Adopted 1/93, Amended 1/04)

• Standard of Practice 16-14REALTORS® are free to enter into contrac-tual relationships or to negotiate with

sellers/ landlords, buyers/tenants or oth-ers who are not subject to an exclusiveagreement but shall not knowingly obli-gate them to pay more than one commis-sion except with their informed consent.(Amended 1/98)

• Standard of Practice 16-15In cooperative transactions REALTORS®

shall compensate cooperating REALTORS®

(principal brokers) and shall not com-pensate nor offer to compensate, directlyor indirectly, any of the sales licenseesemployed by or affiliated with otherREALTORS® without the prior expressknowledge and consent of the cooperat-ing broker.

• Standard of Practice 16-16REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shallnot use the terms of an offer to purchase/lease to attempt to modify the listingbroker’s offer of compensation to sub-agents or buyer/tenant representatives orbrokers nor make the submission of anexecuted offer to purchase/lease contin-gent on the listing broker’s agreement tomodify the offer of compensation.(Amended 1/04)

• Standard of Practice 16-17REALTORS®, acting as subagents or asbuyer/tenant representatives or brokers,shall not attempt to extend a listingbroker’s offer of cooperation and/or com-pensation to other brokers without theconsent of the listing broker. (Amended1/04)

• Standard of Practice 16-18REALTORS® shall not use information ob-tained from listing brokers through of-fers to cooperate made through multiplelisting services or through other offersof cooperation to refer listing brokers’clients to other brokers or to create buyer/tenant relationships with listing brokers’clients, unless such use is authorized bylisting brokers. (Amended 1/02)

• Standard of Practice 16-19Signs giving notice of property for sale,rent, lease, or exchange shall not beplaced on property without consent ofthe seller/landlord. (Amended 1/93)

• Standard of Practice 16-20REALTORS®, prior to or after terminatingtheir relationship with their current firm,shall not induce clients of their currentfirm to cancel exclusive contractualagreements between the client and thatfirm. This does not preclude REALTORS®

(principals) from establishing agree-ments with their associated licenseesgoverning assignability of exclusiveagreements. (Adopted 1/98)

Article 17In the event of contractual disputes orspecific non-contractual disputes as de-fined in Standard of Practice 17-4 be-

tween REALTORS® (principals) associatedwith different firms, arising out of theirrelationship as REALTORS®, the REALTORS®

shall submit the dispute to arbitration inaccordance with the regulations of theirBoard or Boards rather than litigate thematter.

In the event clients of REALTORS® wishto arbitrate contractual disputes arisingout of real estate transactions, REALTORS®

shall arbitrate those disputes in accor-dance with the regulations of their Board,provided the clients agree to be boundby the decision.

The obligation to participate in arbitra-tion contemplated by this Article in-cludes the obligation of REALTORS® (prin-cipals) to cause their firms to arbitrateand be bound by any award. (Amended1/01)

• Standard of Practice 17-1The filing of litigation and refusal towithdraw from it by REALTORS® in an ar-bitrable matter constitutes a refusal toarbitrate. (Adopted 2/86)

• Standard of Practice 17-2Article 17 does not require REALTORS®

to arbitrate in those circumstances whenall parties to the dispute advise the Boardin writing that they choose not to arbi-trate before the Board. (Amended 1/93)

• Standard of Practice 17-3REALTORS®, when acting solely as prin-cipals in a real estate transaction, are notobligated to arbitrate disputes with otherREALTORS® absent a specific writtenagreement to the contrary. (Adopted 1/96)

• Standard of Practice 17-4Specific non-contractual disputes thatare subject to arbitration pursuant to Ar-ticle 17 are:

1) Where a listing broker hascompensated a cooperating brokerand another cooperating brokersubsequently claims to be theprocuring cause of the sale or lease.In such cases the complainant mayname the first cooperating broker asrespondent and arbitration mayproceed without the listing brokerbeing named as a respondent.Alternatively, if the complaint isbrought against the listing broker, thelisting broker may name the firstcooperating broker as a third-partyrespondent. In either instance thedecision of the hearing panel as toprocuring cause shall be conclusivewith respect to all current orsubsequent claims of the parties forcompensation arising out of theunderlying cooperative transaction.(Adopted 1/97)

2) Where a buyer or tenantrepresentative is compensated by the

See Code of Ethics and Standards, Page 17


Calendar November 2004Sun Mon Tues Wed Thur Fri Sat

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25

Did YouKnow?

26 27

ANNUAL CALENDAR OF EVENTSDECEMBER 2004December 1 - Holiday Open House/SCAOROffice / December 3 - Dennis McKenzie TaxDeduction for R.E. Agents / December 9 -GRI 114 – Essential Concepts of the C.A.R.Purchase Agreement / December 10 - OF-FICE CLOSED AT NOON - Installation ofOfficers & Directors Seascape Resort / De-cember 17 - OFFICE CLOSED AT NOON -Staff/Board of Directors Luncheon / Decem-ber 23 - NO TOUR / December 24 & 27 -OFFICE CLOSED – Christmas Holiday /December 30 - NO TOUR / December 31 -OFFICE CLOSED – New Year’s Holiday

JANUARY 2005January 3 - OFFICE CLOSED – New Year’sHoliday / January 14 - GRI 100-101/AgencyRelationships & Ethics January 17 - OFFICECLOSED – Martin Luther King ObservanceJanuary 26 - Orientation / January 28 -Orientation

MAKE YOUR RESERVATION TODAYYou are invited to the 83rd Annual

Santa Cruz Association of REALTORS®Installation Awards Dinner

“The Path to Professionalism”

Honoring Dan Sedenquist,2005 President and the Officers & DirectorsFriday, December 10, 2004, 6:00 to 11:00 pm

Seascape Resort, Aptos$65 per person

Call 464-2000 to reserve your tickets

28 29 30

TOURDEADLINE2:00pm

TOURSAreas23 – 439:30am – NoonAreas 44 – 5912:30 – 3:00pm

TOURDEADLINE2:00pm

AFFILIATECOMMITTEE8:30am·MARKETING &PR COMMITTEE2:00pm·FOUNDATIONFUND RAISINGCOMMITTEE3:30pm

TOURSAreas 23 – 439:30am – NoonAreas 44 – 5912:30 – 3:00pmOFFICE CLOSEDVETERN’S DAY

GRI 113Real Property,Tax &Exchanging8:00am – 5:00pm

BROKERFORUM9 – 11:30amRE INFOLINKCLASS2 – 3:30pm

TOURDEADLINE2:00pm

GRIEVANCECOMMITTEE2:30pm

TOURSAreas 23-439:30am – NoonAreas 44 – 5912:30 – 3:00pm

LGRCOMMITTEE8:30am

NO TOUR DAYOFFICE CLOSEDTHANKSGIVINGDAY

OFFICECLOSED

TOURDEADLINE2:00pm

SANTA CRUZ ASSOCIATION OFREALTORS® HOUSING FOUNDATION• The Santa Cruz Association of Real-tors Housing Foundation is now accept-ing tax-deductible donations. If you wishto donate please make your checks pay-able to SCAORHF and mail to the SantaCruz Association of REALTORS®,2525 Main Street, Soquel, CA 95073.Any amount you are able to donate isgreatly appreciated.

• We would like to acknowledge you foryour gift, please add your name or in-clude your business card with yourcheck. If you have any questions, pleasecall Philip at 831.464.2000.

LICENSE RENEWAL• Continuing education has never beeneasier or more convenient. When choosingyour license renewal package you nowhave choices.

CHOICES• You can purchase the complete renewalpackage Residential Real Estate Trans-actions: From Beginning to End I at theSCAOR store for $70 Members, $110Non-members. After you complete yourrenewal coursework, you may then takeyour exams at SCAOR at no charge, butplease call to schedule. This packagefulfills the First Time Brokers Renewal,and the After the First Time Salesperson& Brokers Renewal.

• Or, you might prefer the convenience...

See DID YOU KNOW, Page 16

BUDGET &FINANCECOMMITTEE8:30amFOUNDATIONTRUSTEES3:00pm


of taking your complete renewal pack-age online at C.A.R. at no charge. Go tohttp://car.learningcenter.com/partners/car/. Courses available online: Residen-tial Real Estate Transactions: From Be-ginning to End I for First Time Brokerrenewal; Residential Real Estate Trans-actions: From Beginning to End II (In-cludes the new Survey Course) for Afterthe First Time Brokers and SalespersonRenewal; and 12-Hour Mandated 4-Packfor First Time Salesperson renewal. Youmay take your exams online at C.A.R.for a fee.

Renewing your real estate license doesn’thave to be a painful experience! Here’ssome easy to understand guidelines inhelping you accomplish your mission:Brokers Renewing for the First TimeReal estate brokers renewing an origi-nal license for the First Time must com-plete 45 clock hours of DRE-approvedcontinuing education consisting of:

• Four separate three-hour courses in thefollowing subjects: Ethics, Agency,Trust Fund Handling, and Fair Housing.

• A minimum of 18 clock hours of Con-sumer Protection courses; and

• The remaining 15 clock hours relatedto either Consumer Service or ConsumerProtection.

• The 45-Hour Residential Real EstateTransactions: From Beginning to EndPackage I fulfills these requirements.

Salespersons Renewing for the FirstTime Real estate salesperson renewingan original license for the First Timemust complete:• four separate three-hour DRE-approvedcontinuing education courses in Ethics,Agency, Trust Fund Handling, and FairHousing.

• The 12-Hour Mandated 4-Pack fulfillsthese requirements.

Salesperson & Brokers Renewing Afterthe First Time for subsequent renewals,all real estate brokers and salespersonsmust complete 45 clock hours of DRE-approved continuing education consist-ing of:• One six-hour “Survey” course that cov-ers the four mandatory subjects (Ethics,Agency, Trust Fund Handling, and FairHousing)

• At least 18 clock hours of ConsumerProtection courses; and

• The remaining 21 clock hours in eitherConsumer Service or Consumer Protec-tion Courses.

• The 45-Hour Residential Real Estate


DID YOU KNOW?

See DID YOU KNOW, Page 17

HOME LOANSThe Faster Way to Close®


Transactions: From Beginning to EndPackage I and the 45-Hour ResidentialTransactions: From Beginning to EndPackage II fulfills these requirements.

• After you’ve completed whicheverC.A.R. license renewal coursework andexams, you’ll get your license renewalforms from the Department of RealEstate (RE 251 and RE 209 –www.dre.ca.gov click on Forms). Next,you can submit your completed RE 251form with the RE 209 form and the ap-propriate fee (you’ll find the fee amounton the application) by mail. Or, the Cali-fornia Department of Real Estate (DRE)offers expedited processing of licenseand examination transactions through theeasy to use, paperless, interactiveeLicensing online system.(www.dre.ca.gov click on eLicensing)NOTE: Do not submit your ContinuingEducation Course Completion Certificates!

DID YOU KNOW?...continued from page 16 ...continued from page 13

Code of Ethics and Standards

seller or landlord, and not by thelisting broker, and the listing broker,as a result, reduces the commissionowed by the seller or landlord and,subsequent to such actions, anothercooperating broker claims to be theprocuring cause of sale or lease. Insuch cases the complainant mayname the first cooperating broker asrespondent and arbitration mayproceed without the listing brokerbeing named as a respondent.Alternatively, if the complaint isbrought against the listing broker, thelisting broker may name the firstcooperating broker as a third-partyrespondent. In either instance thedecision of the hearing panel as toprocuring cause shall be conclusivewith respect to all current orsubsequent claims of the parties forcompensation arising out of theunderlying cooperative transaction.(Adopted 1/97)

3) Where a buyer or tenantrepresentative is compensated by thebuyer or tenant and, as a result, thelisting broker reduces thecommission owed by the seller orlandlord and, subsequent to suchactions, another cooperating broker

claims to be the procuring cause ofsale or lease. In such cases thecomplainant may name the firstcooperating broker as respondent andarbitration may proceed without thelisting broker being named as arespondent. Alternatively, if thecomplaint is brought against thelisting broker, the listing broker mayname the first cooperating broker asa third-party respondent. In eitherinstance the decision of the hearingpanel as to procuring cause shall beconclusive with respect to all currentor subsequent claims of the partiesfor compensation arising out of theunderlying cooperative transaction.(Adopted 1/97)

4) Where two or more listing brokersclaim entitlement to compensationpursuant to open listings with a selleror landlord who agrees to participatein arbitration (or who requestsarbitration) and who agrees to bebound by the decision. In cases whereone of the listing brokers has beencompensated by the seller or landlord,the other listing broker, ascomplainant, may name the firstlisting broker as respondent andarbitration may proceed between thebrokers. (Adopted 1/97)

The Code of Ethics was adopted in1913. Amended at the Annual Conventionin 1924, 1928, 1950, 1951, 1952,1955, 1956, 1961, 1962, 1974, 1982,1986, 1987, 1989, 1990, 1991, 1992,1993, 1994, 1995, 1996, 1997, 1998,1999, 2000, 2001, 2002 and 2003.

Explanatory NotesThe reader should be aware of the

following policies which have beenapproved by the Board of Directors ofthe National Association:

In f iling a charge of an allegedviolation of the Code of Ethics by aREALTOR®, the charge must read as analleged violation of one or moreAr ticles of the Code. Standards ofPractice may be cited in support of thecharge.

The Standards of Practice serve toclarify the ethical obligations imposedby the various Articles and supplement,and do not substitute for, the CaseInterpretations in Interpretations of theCode of Ethics.

Modifications to existing Standardsof Prac t ice and addi t ional newStandards of Practice are approvedfrom t ime to t ime. Readers arecautioned to ensure that the mostrecent publications are utilized.

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2004 CurrentInventory

New Sold Average Median

Single Family Residences

Santa Cruz CountyStatistics

Sept. 764 286 264 $714,165 $645,000

July 852 371 274 $687,265 $635,000

August 821 387 257 $740,612 $639,000

2004 New Sold Average Median

Condos/Townhouses

Sept. 103 68 58 $449,037 $429,964

July 97 63 52 $441,994 $429,000

August 106 79 62 $447,439 $425,000

CurrentInventory

Please visit: http://www.scaor.org-/html/stats.htm for more Santa CruzCounty statistical information.

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