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ONGOING ISSUES
San Luis Obispo County
Smart Growth
- This issue is developing at the county level and will continue to grow
County Wastewater Ordinance
- The county is considering implementing wastewater regulations to cover septic issues in the community. The county will be holding a public hearing on this issue.
Atascadero
Campaign Finance Reform Issue
- REALTORS are at risk of being precluded from contributing to candidates/ issues and PACs
Lompoc
Down zoning Process
- Issue has been placed on the back-burner for the council, but will likely be revisited
Morro Bay
Residential Building Moratorium
- Will be addressed by REALTORS through upcoming communications with the city
Paso Robles
Water Rate Increases
- Paso Robles will be considering raising water rates. REALTORS are encouraged to look into this issue at this website.
Pismo Beach
Vacation Rental Ordinance
- Will be addressed by REALTORS through upcoming communications with the city
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Foreclosure Registration Laws – And REALTORS® are now civilly liable?
Rising foreclosures doesn’t just bring down home prices, it can bring down neighborhoods.
When a property is foreclosed on, there is little money available for upkeep or maintenance. Often the result is that the properties fall into disrepair, yards become overgrown, and the property can even be stripped.
Cities regularly get complaints when this happens, and their resulting action is often to try and regulate foreclosed properties, and here is how they do it:
Step 1 – REGISTRATION
Cities first require that all foreclosures register with the city. Some are smart enough to figure out they can get a list from the county to look into problems, others are not that smart. Of course with registrations come fees.
Step 2 – REPORT
The next step for the city to take is to ask for people to report dilapidated properties, which neighbors are more than willing to do to keep up the neighborhood.
Step 3 – INSPECT
The city then requires an external and internal inspection, from which any code violations invite fines from the city
Step 4 - ENFORCE
Here is where the problem begins for REALTORS®… Who do you enforce these regulations on?
The obvious answer is the property owner. The problem is that is typically the bank. The bank typically doesn’t provide money for repairs on foreclosures. Furthermore banks regularly state that their business is regulated by the Federal Government, not the cities.
So then who does the responsibility fall to?
Well the response recently has been to task the REALTOR® with the responsibility.
Cities from San Diego to Boston have started doing this, and it is even happening here in the Central Coast.
The city of Santa Maria has started requiring real estate brokers to pay for any fees or violations that a property has if it goes into foreclosure.
While REALTORS® respect the efforts of the city to maintain communities, enforcing these fees on the REALTOR® is the wrong step.
Recently the Santa Maria Association of REALTORS® sent a letter to the city explaining simply that:
<!--[if !supportLists]-->· <!--[endif]-->REALTORS® have a contract to sell a property, not maintain it.
<!--[if !supportLists]-->· <!--[endif]-->REALTORS® have no ownership interest in the property.
<!--[if !supportLists]-->· <!--[endif]-->REALTORS® are not the ones at the source of the cause of the violation.
These points among other factors should encourage cities to enforce these regulations on the appropriate parties. Those individuals who own the property.
We fully anticipate that this type of policy will develop and grow in the upcoming months, and as such we ask REALTORS® to let the local association know about any issues along these lines that occur in their areas.
REALTORS® need to work together in order to make sure that their business is protected.
As this issue develops, we will be providing REALTORS® with additional information. You may also contact your local association for additional information.
Help shape the policies that are likely to shape your business.
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