These three news items should be of interest to home sellers and buyers in the TriValley area (Danville, San Ramon, Dublin, Pleasanton).

State contractors board warns of scam – The California Contractors State License Board has issued a warning to consumers about electrical repair companies operating in metropolitan areas that are pressuring customers into unneeded repairs.

Bank of America Cuts Fees For Its Home Loans – Looking to boost market share when loan demand has slowed, Bank of America Corp. has rolled out a no-fee mortgage aimed at home buyers.

C.A.R. Red Alert Update

Home buyers at risk: SB 670 Defeated in Committee

SB 670 (Correa), C.A.R.’s sponsored “Private Transfer Tax Prohibition” bill was defeated today by the Senate Transportation and Housing Committee today. The legislation would have protected consumers by placing responsible restrictions on private transfer taxes levied by developers and limiting the proceeds to environmental and affordable housing efforts related to the new development on which the private transfer taxes are imposed.

Currently, there are no restrictions on where or how proceeds from private transfer taxes can be spent; no accountability or oversight of the recipients of the private transfer tax funds; no limits on how long a private transfer tax may be imposed; no limits on the amount of private transfer taxes that can be imposed on home buyers; and no clear mechanism for disclosing the existence of a private transfer tax obligation to home buyers.

"We are extremely disappointed that SB 670 failed to make it out of committee today,” said C.A.R. President Colleen Badagliacco. “Home buyers in California deserve better. Private transfer taxes can add more than $10,000 to the cost of a home, with no upward limit on how much developers can charge unsuspecting consumers.

Note: As it now stands, a developer can attach a private transfer tax to the sale of a new home and if they are so inclined, can use those funds for anything – including their kids college education. Also, there is no limit on tax – everytime the property changes hands, the tax is accessed again.