Prop 10 & Rent Control

What is California Proposition 10?

Proposition 10 is an initiated state statute that would repeal the Costa-Hawkins Rental Housing Act (Costa-Hawkins), thus allowing counties and cities to adopt rent control ordinances that regulate how much landlords can charge tenants for any type of rental housing. Proposition 10 would also state that a local government’s rent control ordinance shall not abridge a fair rate of return for landlords.[1]

What is the Costa-Hawkins Rental Housing Act?

Costa-Hawkins is a state statute that limits the use of rent control in California. Costa-Hawkins provides that cities cannot enact rent control on (a) housing first occupied after February 1, 1995, and (b) housing units where the title is separate from connected units, such as condominiums and townhouses. Costa-Hawkins also provided that landlords have a right to increase rent prices to market rates when a tenant moves out. Prior to the enactment of Costa-Hawkins, local governments were permitted to enact rent control, provided that landlords would receive just and reasonable returns on their rental properties. The California State Legislature passed Costa-Hawkins in 1995.

Rental Housing Is Expensive in California.

Renters in California typically pay 50 percent more for housing than renters in other states. In some parts of the state, rent costs are more than double the national average. Rent is high in California because the state does not have enough housing for everyone who wants to live here. People who want to live here must compete for housing, which increases rents.

Several Cities Have Rent Control Laws.

Several California cities—including Los Angeles, San Francisco, and San Jose—have laws that limit how much landlords can increase rents for housing from one year to the next. These laws often are called rent control. About one-fifth of Californians live in cities with rent control. Local rent boards administer rent control. These boards are funded through fees on landlords.

State and Local Government Tax Revenues.

Three taxes are the largest sources of tax revenue for the state and local governments in California. The state collects a personal income tax on income—including rent received by landlords—earned within the state. Local governments levy property taxes on property owners based on the value of their property. The state and local governments collect sales taxes on the retail sale of goods.


Farming Tips: Choosing the right area…

While we can’t promise you’ll close 7 figure deals, in this article we’ll tell you everything you need to know to choose and dominate a farm area. Think of your marketing efforts (and dollars) as seeds that you sow on your farm. Like a real farm, there are two essential elements to a bountiful harvest–you need to nurture your planted seeds by watering them, pulling weeds, and applying pesticides, and you need TIME. If you’re expecting overnight success, real estate farming is not for you…

1. Stay Close to Home

If you’re just getting started, then working a farm area close to home is probably your best course of action. In fact, the neighborhood you live in is probably one of your best options. Since it can take a significant amount of time to see a decent return from your farm area, your choice is very important.


2. Do Your Research

Of course, being close to home isn’t the only criteria to choosing the right farm area. Another important element to choosing a farm area are local demographics. Such as: avg. income, avg. age, # of large employers, types of homes in the area, local amenities, & transportation options.


3. DEFINE YOUR Boundaries

In the past few years gentrification has pushed the boundaries of certain neighborhoods just a bit and with people calling these new areas by different names its important to be aware of what the names & boundaries are.


4. Make Sure it’s the Right Size

In real estate farming, size matters. You need to make sure the area is large enough to ensure a decent turnover, but small enough that you can build a name for yourself and consistently return to. Frequency is a large part of the farming equation.



This step can save you both time and money. Our PCT Title Toolbox can give you all of the key stats
needed to help you find the sweet spots in your farm area.


Cloud On Title

The last thing you want to find out in the days leading up to a closing is that the title of a property is clouded. This can push back a closing date or even cause a sale to fall through completely. Unfortunately, if you’re not proactive in looking for a clear title, you may not know until it’s too late. Following are five of the most common reasons that a property title is clouded. A cloud on title is any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property.


1. Recording Error
Bureaucratic agencies have only begun moving towards streamlined electronic processes recently, so for many years, title changes and other real estate transactions were recorded in a myriad of ways that would change from region to region. Unfortunately, this process was far more prone to error than modern methods. Incorrect or incomplete wording can delay clearing of a title. When a recording error is detected, it will typically mean tracking down the appropriate people and paperwork to reconcile the issue.

2. Fraud
There are cases in which a property has been fraudulently recorded via a forged deed. Unfortunately, it is possible for this information to be properly recorded in all avenues, which means that detecting fraudulent deeds is impossible without careful attention. If the title does have a break in ownership due to fraudulent transfer activity, resolving the matter can be long and time consuming for homebuyers, jeopardizing their free and clear ownership of their property.

3. Liens
Liens are one of the most common issues in obtaining clear titles. If there is an outstanding lien on a property, steps need to be taken to release the claim. This typically means making an arrangement between the lienholder and the property owner to pay off any outstanding amount due. While liens may be cleared at closing time, they are not actually removed until the closing agent makes sure the payments are executed and all documents have been correctly submitted. Any error or delay in this process can mean perpetual issues with the property’s title.

4. Probate Issues
For older properties, there is a lot more time for errors in recording or clarifying issues of inheritance. Typically, missing information can be resolved by tracking down death certificates for any individuals related to breaks in the consistency of a clear title. If there are any concerns about ownership history, the appropriate paperwork will need to be provided showing that either those individuals are deceased or have released any claim to ownership. The process of tracking down these documents can be time- and resource-consuming.

5. Foreclosures
Sometimes foreclosures can cloud a title if the process hasn’t been precisely followed. The property must be appropriately described, all involved parties must have been named, and a judgment must be recorded that shows that the foreclosed-upon homeowners are unable to meet financial obligations and therefore release the property. Unfortunately, any errors in previous foreclosures may show up when it comes time to transfer a property’s title, and resolution usually means submitting required paperwork, and even the need to reopen proceedings for a clear amended judgment.

2018 Market Outlook – Things are looking up


With the economy expected to continue growing, housing demand should remain strong and incrementally boost California’s housing market in 2018, though a shortage of available homes for sale and affordability constraints will be a challenge, according to the “2018 California Housing Market Forecast,” released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

The C.A.R. forecast sees a modest gain in existing single-family home sales of 1.0 percent next year to reach 426,200 units, up slightly from the projected 2017 sales figure of 421,900. The 2017 figure is 1.3 percent higher compared with the 416,700 pace of homes sold in 2016.

“Solid job growth and favorable interest rates will drive a strong demand for housing next year,” said C.A.R. President Geoff McIntosh. “However, a persistent shortage of homes for sale and increasing home prices will dictate the market as housing affordability diminishes for buyers struggling to get into the market.”

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.3 percent in 2018, after a projected gain of 2.1 percent in 2017. With California’s nonfarm job growth at 1.2 percent, down from a projected 1.6 percent in 2017, the state’s unemployment rate will dip to 4.6 percent in 2018 compared with 4.8 percent in 2017 and 5.5 percent in 2016.

The average for 30-year, fixed mortgage interest rates will increase slightly to 4.3 percent in 2018, up from 4.0 percent in 2017 and 3.6 percent in 2016, but will still remain low by historical standards.

The California median home price is forecast to increase 4.2 percent to $561,000 in 2018, following a projected 7.2 percent increase in 2017 to $538,500.

“This year’s housing market can be told as a tale of two markets – the inventory constrained lower end and the upper end that’s non-inventory constrained,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “This trend is likely to continue into 2018 as active listings have declined across all price ranges for the past two years, but is most obvious at the lower end.

“With tight inventory being the new ‘norm’ for the past few years and at least the upcoming year, we’ll continue to see fierce competition driving up prices, leading to lower affordability and weaker sales growth.”

Article Credit: Los Angeles Times



8 Popular Apps For Realtors

Looking to incorporate more technology into your business? These 8 apps can help.

  1. Pacific Coast Agent 3.0 – The ultimate netsheet app that makes crunching numbers a breeze. Generate buyers and sellers estimate instantly.
  2. Pacific Coast Instant Profile – Master you farm area with our app that allows you to pull property information, sales comparables, and also create a walking farm.
  3. Cam Scanner – With CamScanner, they can use a smartphone camera to scan anything and convert it to a PDF file.
  4. RPR Mobile – RPR lets you create branded reports with your logo, photo and contact information and easily share them.
  5. Open Home Pro – Open Home Pro will help take the “pen” out of your next open house with their feature-packed paperless open house app.
  6. Slack – It’s a group-messaging app that features file sharing, calling, channel-based organization and more.
  7. Word Swag – Add descriptions to listing photos or share inspiring stats, quotes, etc., as an image overlay to make your messages more relatable, digestible, and memorable.
  8. Evernote – This note-taking app makes note-taking easier by allowing you to make lists, take notes, and snap photos in a single app.4

Got questions about our Pacific Coast Agent 3.0 or our Instant Profile? Ask us today.


Title Talk: Closing Protection Letters


Essentially, a Closing Protection Letter (CPL) is an agreement from a title insurance company to a lender that protects the lender against any issues arising from a closing agent’s errors, fraud or
negligence. It covers escrow activities and services performed by the settlement agent.


Historically, lenders were looking for an insurance product that would cover them for the risks associated with having the settlement agents perform the closing that had the same financial backing as the title policy. Since the 1960’s, lenders have been concerned about the lack of protection provided to them against several issues including: fraudulent action, failure to comply with the lender’s closing instructions, and closing agents/attorneys contracted by the title insurance company to handle the closing, but are not employed by the title company. The CPL assures the lender that their instructions for closing the transaction are followed by the title insurers agents, and that the funds given to the title insurance agent have been disbursed according to the terms of the transaction, and that it’s backed by the financial strength of the issuing underwriter.


Yes, it is a very common request, and quite often is required in any transaction that has a title settlement agent involved. Today’s uncertain economic climate has necessitated the need for lenders to request the CPL. They are important to lenders for another very practical reason: the CPL provides vital protection to the financial institutions that purchase mortgages in the secondary loan market as those secondary lenders do not have agents at the closing table and do not have an opportunity to oversee the closing process.


The typical CPL covers the following:
1. Failure to follow written closing instructions
2. Fraud or dishonesty in handling the lenders funds or documents
3. Negligence of the settlement agent


Yes, the American Land Title Association (ALTA) has standardized the CPL across the nation, and in California, many title insurers have adopted the standard form.


The CPL has a capped liability of the face amount of the title policy issued in the same transaction and the coverage contained therein is contingent on the title policy being issued. The lender has a limited time in which to file a claim once the letter is issued, typically 90 days. Claims against the CPL are on the rise as lenders look to minimize their loss and spread the loss out that they have incurred.


Create Your Own Walking Farm

Create Your Own Walking Farm

Simply Choose Your Area & Start Walking!

It’s that easy.

Spring is here and the door-knocking season is in full effect. Many agents are looking for the right set of tools that can help them achieve success in their door-knocking efforts. Look no further than our Pacific Coast Instant Profile app. It has all the features needed to create a walking farm within seconds. Below are some of the features that our awesome app offers:







  • EXPORT in PDF or CSV




Monthly Affordability Calculator

Do you want to show your clients how much home they can afford based on their desired payment? Look no further than our Pacific Coast Agent 3.0

Checkout this quick tutorial. Let us know if you have any questions.

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