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The 2013 legislative session ended at midnight on Thursday, March 28. Thanks in large part to the grassroots advocacy of REALTORS® across the state, GAR achieved major victories this session that protected our members from legal liability and ensured the foundation of our industry was not disrupted. To learn more about how GAR’s legislative efforts directly impact your business and translate into true member value and the full implications of these bills- please click on Legislative Communications and the Legislative Link on the left panel.

GAR Successful in Passing Bill Allowing REALTORS® to Safely Engage in Short Sale Transactions

Bill Passes to Expedite Professional Licensure Renewal

Ban on Private Transfer Fees is a Big Win For Georgia REALTORS®!

Effort Defeated to Provide Super Liens to Homeowners’ Associations for Unpaid Fees Due to Foreclosure

Construction Lien Law Returns to its Original Form with REALTOR® Support

Georgia Passes Resolution regarding Tennessee Boundary Dispute

Effort to Require Landlords to Store Tenants Property for Two Weeks after Eviction Defeated

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GAR Successful in Passing Bill Allowing REALTORS® to Safely Engage in

Short Sale Transactions!

3/28/13 HB 83 passed the Senate this week, 51-0, and is now on the the way to the Governor's office for his signature. This is a great success for REALTORS® this session! This bill will allow REALTORS® to facilitate short sale transactions without risk of violating the Georgia Banking Department’s interpretation of current law. Thanks again to Representative Josh Clark, a member of NAMAR, Representative David Knight of Griffin, and Senator Josh McKoon of Columbus for their help! The bill was also supported by the Mortgage Bankers Association and the Georgia Department of Banking and Finance.

The passage of HB 83 was not only important for REALTORS®, but to the housing market. Without REALTOR® help in a short sales transaction many consumers could face foreclosure. Short sale transactions are extremely common in our market. The passage of HB 83 allows REALTORS® to provide information to a lender in a short sale transaction without obtaining a mortgage loan originator license.

The success of this bill demonstrates the importance of GAR’s political involvement and its grassroots efforts to protect its members.

The 2013 Legislative Session Reaches Halfway Point

Friday, February 23, 2013, was legislative day 22 of 40 and the pace is beginning to pick up. With the session halfway over, the pressure to get bills moving can be felt all around the Capitol. This week was filled with many committee hearings. Several GAR bills have moved forward, including SB 125, which protects property owners from liability in cases of trespass. This bill has been favorably reported by the Senate Judiciary Committee and will be voted on by the full Senate on Monday. Next week we anticipate HB 125, a top GAR legislative priority, to be heard in committee. This bill would limit verification of citizenship status for U.S. citizens to only the initial application for professional licensure. Also, Speaker Ralston's Ethics Reform bills, House Bills 142/143, will be up for a vote in the House on Monday of next week. GAR will continue to monitor all legislation impacting our industry and update our members as we move forward.

As Congress begins its review of the Federal Housing Administration (FHA) there are important facts to keep in mind:

The economic downturn slowed private lending for housing, and FHA stepped in with safe and a affordable access to mortgage credit.
Since 2008, FHA has assisted 4 million homeowners: Without providing risky mortgage products,Without using exotic underwriting.Without using predatory lending practices.
FHA provided access to credit for millions of Americans who could then responsibly purchase a home - exactly the way Congress designed it to operate 80 years ago.
To follow the House Financial Services Committee: “Examining the Proper Role of the Federal Housing Administration in our Mortgage Insurance Market” and additional information on the hearing visit: http://financialservices.house.gov/calendar/eventsingle.aspx?EventID=318278

First Ever REALTOR Rally A Success

On Tuesday, January 29, 2013, 800 REALTORS® congregated on the steps of the Capitol in downtown Atlanta for the first ever Georgia REALTOR® Rally. Georgia REALTORS® rallied together to support efforts to protect private property rights. AT the Rally, attendees heard from numerous Legislators including Governor Nathan Deal, House Minority Leader Stacey Abrams, and Senate Pro Tempore David Shafer.

Real Estate Provisions in "Fiscal Cliff" Deal

On January 1 both the Senate and House passed H.R. 8, legislation to avert the “fiscal cliff.” The bill will be signed shortly by President Barack Obama. Below are a summary of real estate related provisions in the bill.

Real Estate Tax Extenders

Mortgage Cancellation Relief is extended for one year to January 1, 2014.
Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012.
Leasehold Improvements: 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3%. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80% of the filer’s itemized deductions.

Capital Gains

Capital Gains rate stays at 15% for those at the top rate of $400,000 individual and $450,000 joint return. After that, any gains above those amounts will be taxed at 20%. The $250/$500k exclusion for the sale of a principal residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that, the rate will be 40%, up from 35%. The exemption amounts are indexed for inflation.

2012 Year in Review

To read GAR's Legislative accomplishments from 2012 please click here.

Please click here to read NAR's Legislative and Regulatory Year in Review