In February 2011, a California appeals court found that arbitration proceedings between a broker and a seller had to be conducted under arbitration rules typical of employment contracts. To be valid, the arbitration agreement must include, among other things, cost caps and pre-established rules. Subsequently, C.A.R. withdrew the compromise clause from the Independent Contractor (ICA) contract. Since then, brokers have been subject to costly group actions that call into question the status of independent contractors of associate licensees. For example, C.A.R. has redesigned its ICA to include an arbitration agreement to comply with both the requirements of the 2011 case and other class action waiver cases. The new page-long clause provides that this series of legal issues summarizes the procedure, educational requirements and forms required to apply for a DRE license as a seller or broker and for initial and subsequent licence renewals. In addition, this question-and-answer session was updated with a summary of the recent MLO license confirmation for brokers and sellers who grant mortgages. The code of ethics now prohibits REALTORS hate speech®: what they need to know, what can an unauthorized assistant do? And what shouldn`t an unauthorized assistant do? Keep reading to find out.
To give further indications, C.A.R. has just launched a question-and-answer session on the new compromise clause: if the brokers do not want the arbitration clause to apply, just tell the associate licensee not to initiate the clause and if the broker wants to ensure that the case is tried, they can thwart the entire clause 12 and settle the cross-out. In recent times, C.A.R.`s membership has increased considerably and thousands of new real estate licensees have joined the ranks of those who turn to the legal helpline for free legal advice. As a result, the legal hotline is flooded with calls, faxes and emails. Unfortunately, this can mean a delay of several days before receiving a call from one of the real estate lawyers to our employees. Our call centre representatives, who answer phones, process your requests and pass them on to lawyers, would greatly appreciate your understanding and patience. Even if the new clause is carefully crafted, this area of the law is in a state of change. Brokers can also pay more than they would if the complaint was brought to court by an individual. This must be against the waiver of collective action and confidentiality. If brokers wish to use the new clause, they must have existing associate licensees sign new ICAs.