C.A.R. Legal Guidance on Open Houses – as of 7/2/20

Coronavirus

There still seems to be some confusion in the state regarding the legality of holding open houses, says the California Association of Realtors (C.A.R.). Please be reminded that open houses are not currently permitted in California. The mandatory Industry Guidance states “Discontinue holding open houses and showings open to the general public on a walk-in basis; use an appointment or digital sign-in process to control the number of people in the house or property.” Thus, the only way to show property is by making an appointment in advance. Visitors viewing a house should be from one buying party only and the number of persons in the property is limited by the requirement of social distancing. In addition, the property must be thoroughly cleaned before and after each showing.


Open houses are generally understood to be on a walk-in basis without needing an appointment. Appointment-based showings are not “open houses” in the general understanding of the industry and the public. Therefore, to present a true picture under Article 12 of the Code of Ethics, REALTORS® should conform to the normal understanding of the term.


In other words, REALTORS® should not be putting up Open House signs at all, because if they are advertising a traditional open house they are promoting an unlawful activity, and if they are advertising an “open house” that really isn’t an open house, they are arguably not presenting a true picture in their advertising.

Can I Buy or Sell a House During the Coronavirus Pandemic?

Coronavirus

As spring homebuying season approached this year, Mike and Tammy York of Lompoc, California, listed their house for sale and started looking for a home to buy in Bakersfield, California, where they want to retire.

But then the coronavirus outbreak called everything into question. When the governor of California issued a statewide stay-at-home order March 19, the York’s wondered if they were stuck.

“We thought, ‘Now what are we going to do?'” Mike York says.

Welcome to today’s real estate market, where many ask if it’s still possible to buy or sell. As the Yorks have found, the answer is yes, though the process includes some new challenges.

“There are people out there buying and selling real estate,” says Jeanne Radsick, president of the California Association of Realtors and a real estate agent with Century 21 Jordan-Link & Co. in Bakersfield. “But it’s not just business-as-usual.”

Government social distancing regulations vary by state, county and city. Some states never instituted stay-at-home orders. Others plan to reopen soon, and still others have not set a date to end strict shelter-in-place requirements. Rules about whether real estate is an essential service during a stay-at-home order also vary.

If, like the York’s, you want to sell or buy a home despite the pandemic, here are some of the things you may encounter.

About the author: Barbara Marquand writes about homeownership and mortgages, and is NerdWallet’s authority on insurance.

California Association of REALTORS® Guidance Statement

Coronavirus

“Governor Newsom and the State Public Health Officer issued Executive Order N-33-20 requiring all Californians to stay home except as needed to maintain continuity of operations in 16 infrastructure sectors. This supersedes all existing local city and county orders that are less restrictive. The real estate industry is not exempt from this prohibition except as needed to maintain “continuity of operation … of … construction, including housing construction.” Therefore, REALTORS® should cease doing all in-person marketing or sales activities, including showings, listing appointments, open houses and property inspections. Clients and other consumers are also subject to these orders and should not be visiting properties or conducting other business in person. 

Property management and repair work, which generally involves maintaining sanitary and safety conditions is permissible. Additionally, many other aspects of the real estate industry can continue to occur without in-person contact, including documentation and signing, and in many circumstances, closings. Other activities may also be managed remotely, though there may be some difficulties.”

Disclosure of Potential COVID 19 Exposure

What to do if an agent learns that a visitor to the property, including potentially another agent, tested positive to COVID 19 — is disclosure required or recommended?

This information would be material to anyone at risk for potential exposure but raises the question of whether it’s a property concern or a people concern. Is the concern that the property site itself might have been or is contaminated? Or is the risk of having been around a particular person? And was this person on or offsite from the property?

Legally, known material conditions related to the property should be disclosed. Per the CDC, it’s possible the virus can spread from contact with infected surfaces or objects on a property, meaning a person could get COVID-19 by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes, but this is not thought to be the main way the virus spreads. However, the more relevant aspect to potential exposure pertains to the timing of contact with the property and the infected person and any others who came for a period thereafter. This is not purely or a per-se property condition. But to be on the safe side, a disclosure could be made. Disclosing through the MLS would not be the most effective way to communicate this information because (a) no further showings should be ongoing under the order of March 19, 2020, and (b) the concern at issue is backward-oriented and person-focused (and not a permanent property condition) for those potential visitors and/or agents identifiable from lockbox or other records as having been at the property during that time period with the exposed person. Notice could then be given in a targeted way.   

If making a disclosure, it should be done in a generic way so as not to invade privacy or implicate personal information. This would mean not using names but a general description along the line of “a visitor to the property on Xdate has tested positive for COVID 19.” 

“© California Association of REALTORS®, Inc. Reprinted under a limited license with permission.”