News from the home front

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THE UNITED STATES CONSTITUTION .. You may have heard a lot about what other people have to say, but when did you last read the words. You may be able to get a copy from local California assemblyman just by asking.

BINDING ARBITRATION .. Another name could be secret trial .. is being presented as an alternative to the normal court process. It is promoted as less expensive and quicker. If the award is satisfied voluntarily there will be no need for a public record of any judgement to be filed. This can be a benefit in keeping your credit report in good condition. In our experience with this process we found the following. There was no written record of the procedings required. Any decision by the arbitrator does not have to be supported with points of law. The outcome does not become a part of public record unless the award is confirmed by the court. There is no disclosed right to appeal binding arbitration unless you can prove serious misconduct and as such there is no oversight protection for either party. All activity is conducted behind closed doors. There is no appeal process that we have found. The award is final. The parties are prohibited from discussing the proceedings publicly.

Since there is no record of the proceedings to use when evaluating your own situation or to guide you as to using arbitration or not any decision about moving forward is difficult. In situations where there is no case law to research, there will absolutely be no opportunity to have a case certified for future reference or to look at how a particular arbitrator makes their decisions.

You may also find that some decisions by the arbitrator will be about their right to hear the case, or even regarding their own conduct, which would have the appearance of a conflict of interest. In any case, the potential for fraud or misconduct is great. According to an article in the California Association of Realtors, Arbitrators in California do not have to follow the law. There may be some constitutional isssues with this procedure, but with the courts so crowded, an alternative is being sought. In cases wher arbitration as a condition of employment, this may have the appearance of a right to work issue.

What can this mean to you. DANGER. You may be commiting to a proces not benficial to your interests. It has been suggested that the proper time to agree to arbitrate is when the facts are known and the parties to an arbitration have discussed and agreed to the details of the process. Some areas that might be considered are limiting the fees to be paid for lawyers, others and the arbitrator, how a record of the proceeding is to be kept, if any, having the arbitrator justify the decision, whether or not to use a court reporter, how any award will be constructed, where the procedings will be conducted, what organization will be used as the source for the arbitrator. We do not believe an arbitrator must be a lawyer or judge. You can agree to use an expert in the field of dispute, and instruct them as to how the parties expect the hearing to be conducted. This is not to be considered legal advice and you should always consult with an expert before proceeding.

TRANSACTION FEES .. As some real estate brokers experience higher operating costs and / or lower profitability, they are adding extra fees for services which are in addition to the commission. Thse can have creative names such as transaction fee, coordinator fee, processing fee etc. They should be disclosed before you list your property. If they pop up later your sale will cost you more than you expect.

FINDING IT HARD TO WORK ON YOUR CREDIT REPORT? According to our sources the Federal trade commission determined that Experian, Transunion and Equifax, the three big companies that maintain information about your credit were fined $2.5 million for blocking consumer efforts to correct reporting errors. Sears was fined $300.0 million for collecting debts after they were discharged in bankruptcy. Share your experiences with us.

HOUSING AFFORDABILITY down dramatically according to recent figures from the California Association of Realtors

UGB STANDS FOR URBAN GROWTH BOUNDARIES. This is a very important issue now in California. The moves are afoot statewide to limit growth by the application of restrictions on the expansion of housing into suburbia. Watch for this to be a hot topic in the coming years. This will be one of the factors inflating the cost of housing.

A PROPOSAL to encourage real conservation and reductions in government spending is not now before the Congress or State governments. If it were, there would be a call for less travel to and from work by locating the work places closer to home or big tax breaks for employees who work from home or relocate to within five miles of their work. This would reduce road congestion, fuel consumption, pollution, wear and tear on vehicles, roads etc, lower accidents, reduce insurance costs and give people more time with families.

FIAT MONEY..What is it and how does it work. The world is headed towards this type of money and we think you should understand what it is and the effect this type of money has had in the past. A short book on it is FIAT MONEY IN FRANCE by Andrew Dickson White, approximately $8, short but enlightening. Amazon or local bookstore to order. A long book but much more interesting is THE CREATURE FROM JEKYLL ISLAND by G. Edward Griffin priced about $16 in paperback (starts off like a mystery novel...you're sure to enjoy this one)

The U S Treasury and the Federal Reserve are examining permission for banks to sell real estate. In 1933 the government said no and for very good reasons. That feels almost as good as social security money in the stock market. See your local newspapers for progress.