I was happy to participate for my first time in the recent Realtor® Legislative Day held in Sacramento, CA and put my love of advocacy, real estate and my masters degree in public affairs to work! As a member of the Santa Barbara Association of Realtors (SBAOR) government affairs committee, it was important to join with amazing realtors from Santa Barbara and across the state of California in this significant event to discuss pressing housing policy issues with state lawmakers. The day was marked by poignant discussions and strategic meetings aimed at addressing urgent housing matters that affect Californians. As a community advocate, alongside my distinguished colleagues, we specifically took a stand against Senate Bill 1462, an issue of critical concern for both homebuyers and the real estate community.
- Legislative Day @ Sacramento - Realtors from Santa Barbara, Ventura, and across California gather for housing policy discussions. Source: sbaor.org
After being briefed with realtors from across the state, I volunteered to help with one of the two “Hot Sheet” focal points of the day: the firm opposition to Senate Bill 1462 which, as I shared with Assembly member Gregg Hart and legislative staff for Monique Limón, threatens to undermine existing consumer protections in real estate transactions, particularly in new condo construction projects. While we support and appreciate local developers of new homes, helping with affordability and accessibility, SB 1462 proposes a chilling move away from the current handling of buyers’ deposits, suggesting that developers can retain these deposits and spend them — even if a home is never built. This deviation from the norm — where a buyer's deposit is safeguarded in an escrow account until the completion of a transaction — sparked concerns about the potential risk to consumers' hard-earned money and the opening up of possibilities for fraudulent activities.
Senate Bill 1462, as it stands, could have far-reaching consequences for buyers interested in new condo projects by placing their deposits at significant risk. Traditionally, these deposits are held in escrow to show good faith to the sellers while also protecting the buyer's interests. However the bill's proposed changes would disrupt this balance of trust in the real estate process. We thanked Gregg Hart for his support of constituents and shared our serious concern about this 'anti consumer protection' bill, which as written we were told allows developers unchecked control over buyers' deposits before the construction of homes, a situation we feared could lead to an increase in fraudulent practices and undermine the financial security of potential homeowners.
Our Legislative Day advocacy against SB 1462 is rooted in a firm belief in safeguarding consumer protections in the real estate market. During our conversations with Gregg Hart and others, we emphasized that the spirit of a good faith deposit must be preserved to ensure that buyers are not unduly penalized by unforeseen circumstances in the construction process. The potential for misuse of these funds, as facilitated by SB 1462, presents a risk to the integrity of the real estate industry and the financial well-being of consumers. The only recourse, suing the developer, does not make sense.
I was grateful for the opportunity to talk with Gregg as he listened and asked great questions. The bill, in its current form, deviates significantly from the intended use of these deposits, placing unnecessary risk on buyers who could be left with no recourse but to engage in legal battles to recover their investments.
In light of the discussions at Realtor Legislative Day and the concerns raised by Realtors from SBAOR and across the state regarding SB 1462, there was a growing call to action. It is a pivotal moment for those affected by housing policies to engage, and always, VOTE.
By fostering my favorite 3 Cs - community, collaboration and connection - we came from different perspectives to help increase affordable housing and protect both buyers and sellers. This collaborative effort is essential for navigating the complexities of housing legislation and for making the dream of homeownership a reality for Californians in a challenging market.
Always appreciate acting as a fiduciary for my clients, advocating for their needs and for cooperative win-win relationships with other great local agents for the benefit of our clients. My engagement with lawmakers and local community leadership, I hope, demonstrate the critical role that realtors and community advocates can do to make a positive impact.
I’m sharing my photos from the event, and happy to connect and chat more about our local real estate market. Please reach out!
