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Thursday, Jun 1, 2023

New Ethics Rules Now in Effect for Title Insurance Industry

New rules went into effect Jan. 1 for all employees in California’s title insurance industry. The changes were part of Senate Bill 133, signed into law by Gov. Schwarzenegger and relate primarily to marketing and business development activities. The legal eagles at Old Republic Title have slogged through the revisions to Section 12404 and the newly implemented Section 12418 and come up with some of the more significant provisions. If you’re in the industry, be warned that you should take the time to review the complete text of the bill to make sure you’re in compliance. Here are some of the things that title industry employees cannot do under the new rules: – Pay for, or provide food, beverages or entertainment including lunches, dinners, cocktails, sporting or cultural events, broker caravans, open houses, etc. – Pay for any advertising in any type of publication on behalf of a real estate agent, broker or lender. – Take, or provide, property photographers for a real estate agent, broker or lender. – Create and/or provide any marketing materials for a real estate agent, broker or lender. – Distribute any items with monetary value, such as gift cards, movie tickets, etc. to a real estate agent, broker or lender. – Quote or charge any title or escrow fees below their company’s filed rates with the state. These are considered unlawful rebates. If an industry employee is found guilty of violating the new rules, there are fines, possible suspension or loss of license for both individuals and the companies for which they work. What’s in a Name? NAIOP NAY-op, proper noun: the new name for the organization formerly known as National Association of Industrial and Office Properties; spelled using all uppercase letters. That’s right it’s no longer an acronym, it’s just the name. According to a spokesperson for the NAIOP SoCal Chapter, which covers all of Los Angeles and Orange counties, the change reflects the fact that many of the group’s members have moved beyond just working with industrial and office properties. “They’re moving now into mixed-use, medical office and retail,” said Kaitlin Kenny. The organization has also developed a completely new website. Groundbreaking Costco One of the biggest positive local news items recently was a real estate transaction brokered by Colliers International’s Brent Weirick and Steven McArthur from Northwest Atlantic Partners. The deal: a 14-acre ground lease for the Costco site at Plaza Pacoima. Total lease consideration: $36 million. Weirick, a senior vice president in Collier’s Encino office, worked with McArthur on Costco’s side of the deal while The Clover Company represented lessor Primestor Development. A Majestic Deal Majestic Bell, LLC of Calabasas acquired an 82,934-square-foot office building in Reno for $12 million. AT & T; signed a 10-year, triple-net lease at the close of escrow said David Fradin, president of Majestic Investments. He added the move was one step in achieving Magestic’s goal of diversifying from their primary multi-family investments. Brian Lezak of Cameron Pacific represented Majestic in the acquisition while AT & T; was represented by CB Richard Ellis. Staff Reporter Linda Coburn can be reached at (818) 316-3123 or at lcoburn@sfvbj.com .

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