Author: Hoffman Forde

California’s Recent Insurance Bills: Why They Fall Short for Homeowners

Posted on February 17, 2026 by - Fire

California’s Recent Insurance Bills: Why They Fall Short for Homeowners

Homeowners and buyers across Southern California are struggling to secure basic fire insurance, being denied coverage, losing out on deals, and facing lenders demanding insurance requirements or limits the buyer cannot obtain. In an attempt to help homeowners and buyers, and in response to the 2025 Palisades and Eaton fires, the state legislature introduced new insurance‑related bills that aimed to address these issues. These wildfires displaced thousands and exposed just how fragile California’s insurance market has become. While lawmakers have framed the bills as meaningful relief, the practical impact is limited.

For many people trying to purchase or keep a home in high‑risk areas, the legislation does not address the real problem: carriers are unwilling to write policies in entire zip codes, and are leaving the state. This limits the number of insurance providers which makes accessing fire insurance coverage more difficult than ever.

Volume 1 of our 3 part series focuses on the three bills most frequently discussed in the recent legislative session movement: AB 1, AB 226, and SB 525. Each proposes improvements on paper, but none resolve the core issue facing today’s buyers and homeowners. Insurance availability has become a major obstacle to purchasing, financing, and maintaining a home in Southern California. Even buyers who meet lender requirements and complete mitigation steps are finding that carriers will not quote, bind, or renew policies. These bills offer helpful adjustments, but they are far from fixing the structural failures of California’s fire‑insurance market.

AB 1: Wildfire Risk Regulations and Mitigation Requirements

AB 1 directs the Department of Insurance to update and expand wildfire‑mitigation standards statewide. Some of these standards relate to property‑level hardening and community‑level mitigation planning. Although this may eventually support premium relief, the bill does not address the primary barrier for buyers.

The problem is not only high premiums as insurers are declining to write new policies or renew policies in many San Diego area zip codes, regardless of the mitigation steps taken by the homeowner. A homeowner may comply with every recommended home hardening measure yet still be denied coverage. AB 1 improves regulatory guidance, but it does not require carriers to issue new policies, even when mitigation work is completed.

AB 226: Bonding Authority for the FAIR Plan

The FAIR Plan provides basic fire insurance coverage for high-risk properties when traditional insurance companies will not.  AB 226 authorizes the FAIR Plan to use state bonding to stabilize its finances after major loss events such as the Palisades and Eaton fires.

This measure responds to the pressure placed on the FAIR Plan as claims increased and its reserves were strained. Expanding bonding authority is sensible, but it does not expand coverage limits or meaningfully broaden available policy types. FAIR Plan policies remain limited in scope and are often insufficient for homeowners with moderate or higher replacement costs. Buyers relying on the FAIR Plan still face the burden of trying to secure costly supplemental coverage from a limited pool of high-risk insurers.

SB 525: Manufactured Home Coverage Parity

SB 525 requires that manufactured and mobile homes be insured under the same terms available to site‑built homes under the FAIR Plan. This corrects an inequity but does not change the broader availability crisis. While coverage parity is valuable, the FAIR Plan remains a limited and last‑resort product. Many policyholders still face partial coverage, reduced protections, and uncertain renewals year to year. They are also potentially faced with the additional financial burden of covering expenses beyond what insurance covers in the event of a loss.

Why These Bills Are Not the Long‑Term Solution Homeowners Need

Although these measures represent an effort to respond to mounting public pressure, they do not solve the issues that matter most during a real estate transaction. For buyers who must secure fire insurance to satisfy lender requirements or for their own protection, the core barrier is not only cost but availability. In many high‑risk zones, lenders are increasingly requiring excess coverage, endorsements, or supplemental private policies that no carrier will issue at a reasonable rate.

Some buyers are now facing scenarios where partial self‑insurance becomes the only option available, even though it is not a viable underwriting solution for most conventional loans. These conditions have made it significantly harder for buyers to close transactions and for homeowners to maintain stable coverage.

The recent legislative roll-outs function more like an administrative patch than a structural reform. Premium volatility continues, carriers are still restricting new business and leaving the state, and homeowners remain unsure as to what their policies truly cover. These gaps leave buyers and homeowners confused about their options and sellers vulnerable to failed escrows when insurance cannot be found in time.

In Upcoming Volumes

This volume sets the foundation for a more realistic review of California’s insurance reforms. The next volumes will cover the issues that are already affecting real estate transactions throughout San Diego County.

Volume 2 will break down the newest C.A.R. wildfire‑disclosure forms, their practical effect in a transaction, and the misunderstandings occurring between buyers, sellers, agents and government entities.

Volume 3 will examine insurer withdrawals from the California market, increased lender scrutiny during underwriting, and the growing trend of buyers being required to partially self‑insure to secure financing.

Sources

  1. Law360 summary of new insurance bills affecting Los Angeles fire survivors
  2. California legislative summaries for AB 1, AB 226, and SB 525
  3. Post‑Palisades and Eaton wildfire reporting on FAIR Plan strain and market instability

Need Legal Advice?

If you’re a landlord or a tenant impacted by fires in San Diego, contact Hoffman Forde today at (619) 614-2170 or intake@hoffmanforde.com.

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

Cornering The Real Estate Market: How A Quiet Merger May Have Big Antitrust Consequences

Posted on February 10, 2026 by - Residential Real Estate

Merger Antitrust Implications

The merger between Compass, Inc. and Anywhere Real Estate isn’t just another headline about industry consolidation. It represents a fundamental reshaping of the residential brokerage landscape, creating a single firm with the kind of market power that antitrust regulators usually watch closely. What looks like a business deal on paper has real implications for buyers, sellers, and the competitive nature of the real estate market. A deal like this should raise real questions over market dominance, consumer harm, and the adequacy of federal oversight. This companion piece to our first article provides a legal analysis of these issues and explains why the deal deserves continued scrutiny.

A Merger That Crosses Key Antitrust Thresholds

One of the biggest concerns in this merger is simple to identify size. Since the merger, independent analyses have shown that Compass now controls more than 30% of the market in several major metropolitan areas. This is a threshold the Department of Justice and the Federal Trade Commission treat as presumptively unlawful under the 2023 Merger Guidelines. In some locations, the numbers are even more striking, growing to 70 or 80% in places like Manhattan and parts of Northern California.

Federal agencies use these thresholds to identify mergers that risk monopolization or substantially reduced competition. When a single firm controls a disproportionate share of listings, agents, and advertising channels, competitors have difficulty entering or expanding in that market. This limits consumer choice and can distort pricing and service quality. The scale of this merger places it squarely within the range that regulators typically challenge.

Regulatory Review and Process Integrity Concerns

Ordinarily, a merger with this level of market impact would receive a lengthy, rigorous federal review. But according to multiple reports, DOJ antitrust staff actually recommended a more extensive investigation, only to be overruled by senior DOJ leadership which allowed the merger to proceed.

This accelerated clearance has not gone unnoticed, and lawmakers have also expressed concern that the merger may raise fees for buyers and sellers due to reduced competition.

These concerns do not establish illegality but highlight a gap between standard antitrust practices and the process used in this case. Market consolidation of this magnitude ordinarily triggers rigorous scrutiny under the Hart Scott Rodino Act.[1] Instead, the merger cleared the required waiting period without objection. This expedited approval does not prevent later reassessment of the harmful consequences that may arise as result of the merger.

How Consumers Could Feel the Impact

Experts warn that Compass will likely seek to recover merger-related costs by increasing compensation paid by consumers or imposing new additional fees on consumers and agents. This could look like higher compensation paid by consumers to brokers due to lack of competition. This risk is particularly relevant where the merged firm controls most of the premium listings and can leverage that position to inflate compensation agreements.

Another concern is restricted access to listings. If Compass expands its off MLS listing approach to a nationwide scale, competitors may lose the ability to display inventory in a timely and competitive manner. Reduced listing visibility lowers competition for those properties and may impair a buyer’s ability to compare options. Senators such as Senator Elizabeth Warren, regard restrictions on information flow as a hallmark of anticompetitive behavior, because they undermine the transparency that keeps markets functioning.

A Notable Twist: Compass Is Also Suing Zillow for Anticompetitive Conduct

While the Compass–Anywhere merger pushes Compass past critical concentration thresholds, the company is simultaneously advancing its own antitrust claims against one of the few remaining competitors large enough to challenge it: Zillow.

In its lawsuit, Compass argues that Zillow’s “private listing” ban, a policy that blocks listings from Zillow if they appear elsewhere first, is an unlawful attempt to steer listings to Zillow’s platform. But on February 6, 2026, a federal judge denied Compass’s request for an injunction, finding that Compass failed to show Zillow has monopoly power or engaged in a conspiracy with Redfin or eXp Realty.

It is an ironic juxtaposition: as Compass defends a merger that triggers federal presumptions of illegality, it is also asserting that a competitor is limiting market competition in the very space where Compass seeks to expand its influence. This parallel litigation underscores how blurred the lines of “dominant player” and “harmed competitor” have become in a rapidly consolidating industry.

Market Power and the Risk of Coordinated Conduct

A single firm holding an outsized share of listings, agents, and advertising channels can influence industry norms in ways that do not require explicit agreements. The merged company now has the ability to shape compensation structures, listing practices, and market expectations across large regions. Compass has publicly stated they are targeting a 30% market share goal and the merger with Anywhere, and all brokerages under its umbrella, accelerates that in many cities. This threshold is not only symbolic but reflects the point at which unilateral effects become legally significant. Once a brokerage achieves a certain market share, courts and regulators consider whether its conduct chills rivalry or forecloses competitors from necessary distribution channels. Those watching this merger closely will have to wait and see how these concerns play out.

The irony, however, is that while Compass now enjoys the kind of scale that raises traditional antitrust concerns, it is simultaneously arguing that Zillow is engaging in exclusionary conduct of its own. This contrast underscores how quickly market power concerns shift depending on whether Compass is the consolidating firm or the complaining party, and how consolidation on both the brokerage and digital‑platform fronts creates new tensions in defining who truly holds competitive leverage.

Conclusion

The Compass Anywhere merger reshapes the residential real estate industry in ways that demand continued attention. The scale of the combined company raises real questions about how competition will function in the markets where it already holds significant power and influence.

As consumers face fewer independent brokerages and a more consolidated marketplace, many may also find themselves needing legal counsel rather than relying solely on a real estate agent to protect their interests. In a landscape where one firm holds disproportionate control over listings, compensation, and the flow of information, buyers and sellers could increasingly turn to attorneys to ensure fair dealing, negotiate complex terms, and guard against the very conflicts that heightened consolidation tends to produce. This shift reflects a broader truth: when competitive checks diminish, the importance of independent legal advocacy becomes even more pronounced.

For now, the industry is entering a period where one company’s decisions will carry greater weight than ever before. Understanding the antitrust issues at play is not simply an academic exercise, it is a necessary step for anyone who wants to navigate this new landscape with clarity and protect their clients’ interests.

[1] Hart‑Scott‑Rodino Antitrust Improvements Act of 1976, Federal Trade Commission,

 

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

Burning Down the House: A Guide to California’s Wildfire Fund

Posted on February 6, 2026 by - Fire

Burning Down the House: A homeowners guide to California's Wildfire fund in 2026

California created a multi‑billion‑dollar Wildfire Fund to steady the system when utility equipment is blamed for catastrophic blazes. In 2026, lawmakers are signaling that the program’s design could shift, changes that may find their way into utility bills, insurance options, and home finances for everyday homeowners.

Below, you’ll find an explanation of how the fund works, why lawmakers are considering updates now, and what steps you can take to protect your household budget.

What the Wildfire Fund Is and Why It Exists

When a major wildfire is tied to power‑line equipment failures, losses can climb into the billions. To avoid a repeat of past utility company insolvencies and to speed up payments to victims, California assembled a $21 billion pool, financed half by utility company shareholders and half by a continuing charge on customer electric bills. The fund’s intent was to allow for consumer claims to be paid without pushing a utility company into insolvency.

The fund as structured remains a cornerstone of California’s wildfire‑liability strategy, even as the state faces more frequent and higher‑cost fire seasons.

Why 2026 Could Bring Big Changes

In January 2026, a bill was introduced to position the Legislature to rework or even replace the current fund after a state report is generated and received by lawmakers this spring. The goal is to act on the report’s recommendations, which are expected to evaluate the fund’s adequacy and alternative models for paying wildfire losses.

Separately, policymakers have publicly discussed additional contributions to bolster the fund, including the idea of extending customer surcharges for years beyond their current timeline, an approach that drew pushback from consumer advocates and utility company investors alike.

What this means for homeowners: The state is actively reassessing who pays, how much, and through which mechanisms, issues that impact monthly bills and insurance dynamics.

 

How the Fund Functions Today (and Where Homeowners Fit In)

  • First layer of cost: If a utility company is found responsible for a wildfire, it must cover an initial portion of damages before tapping the fund (a structure designed to keep utility companies accountable).
  • Shared financing: Customer surcharges supply roughly half the fund; utility company shareholders supply the other half. If the surcharge under‑collects, utility companies can seek higher rates to meet statutory obligations.

For homeowners, the practical effect shows up on electric bills and, indirectly, in the stability of the insurance market, which watches the fund closely when pricing risk.

What Homeowners Should Expect Next

1) Pressure on Utility Bills

If lawmakers extend or expand surcharges, or if utility companies request rate adjustments to meet statutory funding levels, monthly bills can rise. Past proposals would have added billions in new contributions, split between customers and utility company shareholders, primarily by prolonging the existing customer charge. Build a cushion in your budget for the possibility of higher electricity costs.

What to do now:

  • Review your bill’s line‑item surcharges quarterly.
  • If you’re on a variable rate plan, compare alternatives and time‑of‑use schedules.

2) Shifts in Home Insurance Availability and Pricing

Insurers track whether California’s liability framework looks predictable and well‑funded. If the fund appears thin relative to catastrophic risk, insurers may restrict new policies or raise premiums, particularly in higher‑risk areas, like much of San Diego County. A resilient fund, by contrast, can support market stability and faster victim payouts after a disaster.

What to do now:

  • Ask your carrier which home‑hardening or defensible‑space steps reduce premiums.
  • Keep digital records (photos, receipts) of mitigation work; this helps during renewals and home sales.

3) More Robust Mitigation Expectations

If the state concludes that paying for losses alone isn’t sustainable, lawmakers may double down on prevention, tightening defensible‑space and building‑materials standards statewide, mirroring the local wave of tougher rules many cities (including San Diego) are adopting for 2026–2027. Expect stronger inspection programs and closer alignment with updated fire and urban building codes.

What to do now:

  • Prioritize upgrades with outsized risk reduction: ember‑resistant vents, Class A roof, non‑combustible 0–5 ft perimeter.
  • Schedule annual vegetation maintenance ahead of peak season.

4) Possible Rebalancing of “Who Pays”

Depending on the 2026 report and legislative negotiations, the cost of wildfire losses could tilt toward utility company shareholders and customers. Each option touches your finances differently: more onto ratepayers means higher bills; more onto insurers can translate into premium hikes; more onto utility companies might affect reliability investments or shareholder negotiations.

What to do now:

  • Follow bill updates through the spring; major shifts usually include timelines and implementation dates that affect household budgets.

5) Real‑Estate Implications

Buyers and appraisers are paying closer attention to wildfire resilience. Expect more questions at sale about roof class, vents, siding, defensible space, and local compliance letters, factors that can influence time on market and price.

What to do now:

  • Keep a simple “Wildfire Readiness” file with invoices, before/after photos, and inspection results.
  • If selling, complete key mitigation projects pre‑listing to reduce buyer friction.

FAQ for Homeowners

Will my electric bill definitely go up this year?
Not guaranteed but it’s possible. Lawmakers are weighing options that include extending the existing surcharge, and utility companies can request adjustments if collections lag. Track the legislative calendar and any formal rate cases that apply to your service area.

Could my home insurance be affected even if I’m nowhere near a forest?
Yes. Insurers price statewide portfolio risk. The perceived strength of the Wildfire Fund and the predictability of liability rules can influence underwriting across regions, not just in high‑fuel zones.

What state actions should I watch?
Two milestones: the spring 2026 report evaluating new approaches, and the Legislature’s response under the bill introduced in January 2026. Those decisions will clarify cost‑sharing and timelines.

Stay updated on our blogs where we will soon release a 3- part series on bills that have changed the wildfire fund as of late 2025, C.A.R wildfire disclosure forms, and insurer withdrawal from the California market.

Need a Consult?

Contact Hoffman & Forde today at (619) 546-7880 or intake@hoffmanforde.com. Our firm’s attorneys offer clear, strategic guidance to help with your legal problems.

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

San Diego Flooding: What Tenants & Landlords Need to Know

Posted on February 4, 2026 by - Flooding

San Diego Flooding

San Diego Flooding: What Our Community Has Endured and What Tenants & Landlords Need to Know

The heavy rains and extensive flooding that hit San Diego in early 2024 were more than just a weather headline, they disrupted lives, damaged homes and rental properties, and left many residents scrambling for answers. From Southeast neighborhoods like Southcrest to Mission Valley and National City, our community witnessed firsthand the force of nature and the very real challenges that come with it.

The end of 2025 brought another wave of increased rainfall, and as we look ahead in 2026 it’s important to understand what rights tenants and landlords have, and what to do next as we anticipate more disruptive weather events.

The Community Impact of Floods

Unprecedented rainfall can overwhelm storm drains, cause widespread street flooding, and force residents to evacuate or contend with water entering their homes. Many San Diegans continue to see personal property damaged or destroyed, and countless renters could find their units uninhabitable due to standing water, mold concerns, or structural issues.

Continued flooding may raise legal and financial concerns for tenants and landlords alike, especially where properties are damaged and habitability becomes an issue.

Landlord Responsibilities After Flood Damage

Landlords have important duties when a property is affected by flooding and knowing your responsibility as a landlord can save you time and money.

  1. Prompt Repairs

Once notified, landlords are required to repair flood-related damage that affects habitability. This includes addressing water intrusion, removing mold hazards, and restoring utilities or structural elements necessary for safe living conditions.

  1. Habitability Standards

Under California law, maintaining habitability is not optional, it’s a legal obligation. If a property is unsafe or unhealthy due to flood injury, landlords must act quickly to remedy the situation.

  1. Communication With Tenants

Clear, timely communication with tenants about the extent of the damage, repair timelines, and expectations for repairs helps promote cooperation and can prevent disputes from escalating into legal claims.

Landlords’ Rights When City Infrastructure Failures Contribute to Flooding

In some cases, flood damage is not solely the result of extreme weather, but of failed or poorly maintained public infrastructure, such as storm drains, culverts, or flood-control channels. When a city’s negligence contributes to or worsens flooding, landlords may have legal rights to pursue claims against the municipality. California law allows property owners to seek compensation under theories such as inverse condemnation or negligence when government-owned infrastructure causes private property damage. These claims may allow landlords to recover costs for structural repairs, lost rental income, and other damages stemming from the flood. Because claims against public entities involve shorter deadlines and specific procedural requirements, landlords who suspect city infrastructure failures played a role in flood damage should document conditions immediately and consult legal counsel as soon as possible to preserve their rights.

Tenant Rights After Flood Damage

If you rent your home or apartment in San Diego and experience flooding, California landlord-tenant law provides important protections:

  1. Right to a Habitable Unit

Under California law, landlords must maintain rental properties in a habitable condition. This means the property must be safe, sanitary, and fit for normal use. Flood damage that compromises basic living conditions, leads to mold growth, or makes the unit unsafe can render it uninhabitable. In these situations, tenants may have legal grounds to demand repairs or, in some cases, to withhold rent until the issues are addressed.

  1. Reporting Flood Damage to Your Landlord

Prompt communication is key. If flooding has affected your rental unit, you should notify your landlord in writing as soon as possible. This not only helps start the repair process but also preserves legal rights, especially if there’s a dispute later about when the issue was reported.

  1. Rent Adjustment or Lease Termination

In severe cases where a unit is uninhabitable for a prolonged period, tenants may be entitled to rent abatement (a reduction) or even early termination of the lease. Each situation depends on specific circumstances, but the general principle in California is that landlords cannot legally collect full rent for a dwelling that is not livable.

 

What You Should Do Next

For Landlords

✔️ Assess and repair quickly: Address safety hazards and habitability issues as soon as possible

✔️ Stay in communication with tenants: Let tenants know what steps are being taken and when repairs will occur

✔️ Maintain clear records of damage, repairs, and communications

✔️ Know your legal obligations: Ignoring habitability issues can expose you to legal liability

✔️  Document nearby public infrastructure (storm drains, channels, streets, overflows)

✔️ Save all repair and loss records, including lost rental income

✔️ Request city maintenance and inspection records, if applicable

✔️ Calendar government claim deadlines (often as short as six months)

✔️ Avoid signing releases that could waive claims against the City

✔️ Speak with legal counsel early to assess potential claims

 

For Tenants

✔️ Document the damage: Use photos and written descriptions of flood impacts

✔️ Notify your landlord in writing: A written record helps protect your rights

✔️ Understand your lease and local laws: Depending on the severity of damage, you may have options for rent adjustments or lease termination

✔️ Seek help if needed: If your landlord fails to act, it may be time to consult with an attorney who understands tenant rights

 

Final Thoughts

The flooding in San Diego will have lasting effects for tenants and landlords alike. Whether you’re dealing with property damage, habitability concerns, or questions about lease obligations after a disaster, it’s important to understand your rights and options under California law and to take the right next steps.

If you have questions about your specific situation or need guidance on managing flood-related landlord-tenant issues, our team at Hoffman Forde is here to help. Contact us for a consultation today.

Disclaimer: The information provided in this blog is provided for educational and informational purposes only. This content should not be construed as legal advice. You should not act or refrain from acting on the basis of any information contained on this blog. Any actions or decisions involving your legal rights should be based on the facts and circumstances of your specific situation, and only after consulting with and retaining the legal services of an attorney.

Key Changes to Real Estate Compensation Rules Following NAR Settlement

Posted on January 29, 2026 by - Residential Real Estate

Blue background: NAR Settlement & Real estate Commission Changes

In Volume 1, we explored the Sitzer-Burnett lawsuit and the landmark NAR settlement that reshaped the real estate industry. Now, in Volume 2, we turn to the practical side: what these changes mean for you as a buyer or seller. From new rules on agent compensation to how negotiations work today, here’s what you need to know to navigate this evolving landscape with confidence.

Key Changes to Real Estate Compensation Rules

  1. The term “commission” is no longer recognized as the correct term for payments earned by Realtors and was replaced with “compensation”. Offers of compensation are no longer permitted on the MLS. NAR established a new rule which clearly prohibits any offers of compensation and carries penalties for any MLS that allows such postings.
  2. Consumers have the right to pursue compensation for the agent representing them through negotiations. This change went into effect on August 17, 2024.
  3. Realtors working with buyers must have a written agreement for the payment of compensation prior to showing a property to a prospective buyer or at minimum prior to submitting an offer to purchase. As of January 1, 2025, this rule became law in California. The California Association of Realtors updated the Buyer Representation and Broker Compensation Agreement to conform with the rules and new law.
    • Listing agents cannot advertise on the multiple listing service the amount of compensation that a seller is willing to offer the buyer’s agent
    • Buyer’s agents are required to have a written Buyer Representation and Broker Compensation Agreement when showing properties to their buyers
    • Sellers do not have to pay buyer’s agent compensation
    • Buyers can request, when making an offer, that the seller pay the buyer’s agent compensation

While the new rules and practices are beneficial to the consumer, the real estate market has not significantly changed because mortgage rates have remained elevated near 6–7% through 2025. The result is that buyers are hesitant to enter the real estate marketplace and sellers are staying in their homes. This in turn keeps inventory low and maintains home prices at a higher level.

Despite all the predictions that consumers will demand lower compensation to real estate agents, this has not really occurred. The average buyer’s agent compensation was 2.43% for homes sold in the second quarter of 2025, that’s actually up from 2.38% a year earlier. The average combined buyer’s and seller’s agent compensation increased from 5.32% to 5.44% in 2025. Real estate agents have embraced compensation negotiations with their clients by establishing their value in assisting their clients in real estate transactions.

Impact on Buyers and Sellers

These changes have evened the playing field for the buyers and sellers. While compensation to real estate brokers has always been negotiable the custom and practice in the real estate industry was that the seller was paying 100% of the compensation with little if any negotiations.

Sellers still have the choice of offering compensation to buyer agents. A seller may consider doing this as a way of marketing the home or making your listing more attractive to buyers. The listing agent must clearly disclose and obtain approval from the seller for any payment or offer of payment that a listing agent will make to another agent acting for buyers. This disclosure must be made to the seller in writing in advance of any payment or agreement to pay another agent acting for buyers and must specify the payment amount or rate. If a seller chooses to approve an offer of compensation, there are changes to how it can be communicated as it cannot be advertised in the MLS. In today’s market the offer of compensation is not advertised and generally comes in the form of an offer from a buyer with a request that the seller pay the buyer’s agent’s compensation. The seller then can negotiate through a seller counter offer.

Buyers must sign a compensation agreement with the agent acting on their behalf and can advise that agent that any offer that they make must include that the seller will pay their agent’s compensation. Buyers can still request that their agent be compensated by the Seller as part of their offer to purchase the property.

Now the brokers are truly negotiating and discussing their compensation with their respective clients. Buyers and sellers are fully aware of who is paying the compensation and the total amount of compensation being paid. This has led to greater transparency and has not significantly diminished the amount of compensation being paid.

The new compensation rules have introduced clarity and negotiation into the real estate process without drastically reducing agent earnings. Buyers and sellers now have more control and visibility, which is a win for transparency. While market conditions like interest rates still drive overall activity, these changes empower consumers to make informed decisions.

If you’re preparing to buy or sell, now is the time to understand your options and work with a professional who can guide you through this evolving landscape. Contact us today to learn more.

 

Disclaimer
The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

Moving The Goal Post: Strategies for Section 998 Settlement Offers

Posted on January 27, 2026 by - Civil Litigation

Moving The Goal Post: Strategies for California Code of Civil Procedure Section 998 Settlement Offers

Overview and policy purpose

California Code of Civil Procedure Section 998 (“Section 998”) is a settlement offer statute designed to push parties toward realistic compromise by attaching meaningful financial consequences to the rejection of a qualifying offer. Its mechanism is not primarily punitive. Instead, it aims to encourage reasonable settlement behavior and discourage parties from continuing litigation when an early resolution was available on fair terms.

Section 998’s leverage is often most visible in cases where litigation costs, and especially expert costs and attorneys’ fees, can quickly eclipse the underlying damages. In statutory fee‑shifting regimes (including many employment and consumer actions), § 998 can become a practical “line in the sand,” because in appropriate cases it may sharply limit the offeree’s ability to recover post‑offer costs and, where fees are treated as recoverable costs under the governing statute, potentially post‑offer attorneys’ fees as well.

Core statutory mechanics

Section 998 allows any party to serve a written offer to allow judgment to be taken, or for an award to be entered, on specified terms. The offer must be served at least 10 days before trial, or before arbitration begins in covered arbitrations.

If the offer is accepted, the accepted offer and proof of acceptance are filed and judgment is entered (or an arbitration award is issued). If the offer is not accepted within 30 days, or before trial or arbitration begins (whichever occurs first), it is deemed withdrawn and generally cannot be used as evidence at trial or arbitration.

The statute’s real force appears in its cost‑shifting provisions:

  • If a defendant makes a qualifying Section 998 offer which the plaintiff does not accept and the plaintiff fails to obtain a more favorable “judgment or award,” then the plaintiff cannot recover post‑offer costs and must pay the defendant’s costs from the time of the offer.
  • Courts also have discretion (outside eminent domain matters) to require the plaintiff to pay reasonable post‑offer expert witness costs that were actually incurred and reasonably necessary.

In practice, this creates a high‑stakes decision point for the offeree: rejecting a serious offer can expose the offeree to a double consequence: loss of their own post‑offer recoveries and potential liability for the other side’s post‑offer costs (including expert costs), shifting settlement leverage materially as trial approaches.

What counts as “more favorable”

Courts compare the dollar value of the final result to the value offered under Section 998. The statute directs courts to exclude post‑offer costs when evaluating whether the plaintiff obtained a more favorable result than the offer. This means the comparison centers on the substantive value of the outcome rather than litigation expenses that accrue later.

A simplified example:

  • If the offer was $100,000, and the plaintiff’s judgment is $100,000 plus pre‑offer costs, the result may be treated as equal or more favorable because pre‑offer costs can be included in the valuation.
  • But if the plaintiff’s judgment is $100,000 plus only post‑offer fees or costs, those post‑offer amounts are excluded from the “more favorable” comparison. In that scenario, the result is not more favorable.

This comparison framework is central to Section  998’s settlement pressure: it allocates risk to the party who refuses a valid offer by placing on that party the burden of achieving a better outcome later.

The Supreme Court’s clarification on pretrial settlements: Madrigal v. Hyundai Motor America

A major practical question had been whether Section  998 cost shifting applies only when the case ends in a judgment after trial, or whether it can apply when the parties settle later for less than an unaccepted offer. The California Supreme Court addressed this in Madrigal v. Hyundai Motor America (March 2025) and held that a plaintiff who rejects a valid  Section 998 offer may still face § Section998 consequences if the plaintiff later settles for less than the offer amount, even without a trial verdict. It is important that any settlement agreement entered into after a rejected Section 998 offer should include language that each party is to bear their own attorney fees and costs.

What Madrigal clarified (and why it matters)

  1. No “trial required” rule. The Court’s analysis made clear that Section  998’s cost‑shifting framework is not limited to cases that culminate in a verdict. Put differently: Section  998 does not contain a categorical “trial requirement.” The statute can penalize the nonaccepting offeree for continuing the case after a proper offer, even if the case later resolves by settlement rather than a judgment after trial.
  2. Procedural posture underscores the risk. In Madrigal, the parties reached a stipulated settlement after a jury was sworn on the first day of trial, and the settlement left issues of costs and attorneys’ fees to be decided by the court. That posture illustrates a key real‑world lesson: even when parties settle late, unresolved fee‑and‑cost allocation can spark a post‑settlement fight in which a prior §Section998 offer becomes determinative.
  3. The offeree bears the risk/burden. The decision reinforces that Section 998 places the practical burden on the offeree to obtain a “more favorable” result after rejecting a valid offer. If the offeree cannot do so, the statute’s cost consequences may apply.

Why this matters in practice

Madrigal strengthens Section 998 as a leverage tool because it reduces the ability to avoid cost consequences simply by settling late for less than an earlier, reasonable offer. It also reinforces the statute’s settlement‑forcing purpose by placing the financial risk on the party who declines a valid offer and continues litigating.

This clarification is especially important in contexts like employment litigation, where statutory fee‑shifting can drive exposure. Defendants, often employers, frequently use §Section998 offers not just to encourage settlement, but to manage and cap the risk of escalating post‑offer fees and costs. After Madrigal, the strategic value of an early, well‑calibrated offer increases because a later settlement does not necessarily “wash away” Section998’s cost‑shifting potential.

Limits of Section998: post-judgment enforcement costs

Another practical boundary is whether Section 998 can bar recovery of fees and costs incurred after judgment for enforcement activity. In Elmi v. Related Management (Cal. Ct. App. Jan. 8, 2025), the Court of Appeal held that Section 998 governs only prejudgment costs and does not control post-judgment enforcement costs, which instead are addressed by the Enforcement of Judgments Law. This distinction is significant for litigants who “win” but face extended enforcement fights because Section 998 does not automatically foreclose enforcement-related recoveries that are authorized by the separate enforcement statutes.

Practical guidance for drafting and evaluating Section 998 offers

Below are practice points grounded in the statute’s structure and the post 2025 case guidance described above.

A. Build a clean record of validity

Because Section 998 consequences can be substantial, litigants should ensure strict compliance with service, timing and form requirements, including the written acceptance mechanism and the 30 day acceptance window. A technically flawed offer can forfeit the benefits, even if the number was reasonable.

B. Price the offer with realistic downside in mind

After Madrigal, parties should treat late settlements as potentially triggering the same comparison analysis as a trial outcome if the settlement ends up less favorable than the earlier offer. That increases the value of making serious offers earlier and increases the risk to an offeree who rejects a defensible number and later compromises downward. A thorough and complete settlement agreement addressing the Section 998 issues is paramount.

C. Consider expert cost exposure as a lever

Section 998 explicitly allows discretionary shifting of post-offer expert witness costs in many matters, which can be especially influential in cases where expert work drives the budget. Even the possibility of those costs can change a case’s settlement posture, particularly as trial approaches.

D. In fee‑shifting cases, evaluate attorneys’ fee exposure explicitly

In statutory fee contexts where attorneys’ fees are recoverable as costs, a valid Section 998 offer may function as a practical cutoff device for post‑offer recovery (depending on the governing fee statute and how courts treat the fee component). That makes it essential for both sides to model not only expected damages, but also expected fee growth, and to incorporate that growth into valuation and settlement strategy.

E. Draft settlements with cost allocation front and center

Because parties can agree to cost allocation terms in settlement, a settlement agreement can avoid a separate fight about who bears which costs and fees after a late compromise. This is especially important when the settlement number is near, or below, a prior Section 998 offer. If costs and fees are left open, the Section 998 comparison may drive the outcome.

Conclusion

Section 998 remains a central settlement device in California civil litigation because it ties litigation economics to settlement behavior through cost shifting and potential expert fee exposure. The California Supreme Court’s Madrigal ruling underscores that Section 998 consequences can apply even when the case resolves through a pretrial settlement that is less favorable than an earlier rejected offer, and that § 998 is not limited to cases resolved by trial verdict.

The practical guidance is clear: Section 998 offers as high‑impact decision points, evaluate them with disciplined valuation (including attorneys’ fee growth where relevant), and draft settlements with costs and fees expressly addressed, particularly when prior § 998 offers exist.

Need Legal Advice?

Contact Hoffman & Forde today at (619) 546-7880 or intake@hoffmanforde.com.

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

Sources:
Lexology, California Supreme Court Clarifies that CCP Section 998’s Cost-Shifting Rule Applies to Pre-Trial Settlements, https://www.lexology.com/library/detail.aspx?g=58fde69d-a6c9-488b-a727-3191518b3d27 (last visited Jan. 23, 2026).
Cal. Civ. Proc. Code § 998, FindLaw, https://codes.findlaw.com/ca/code-of-civil-procedure/ccp-sect-998/ (last visited Jan. 23, 2026).
Alison L. Tsao, California Supreme Court Clarifies Cost Shifting Under CCP Section 998, CDF Labor Law LLP (Apr. 16, 2025), https://www.cdflaborlaw.com/blog/california-supreme-court-clarifies-cost-shifting-under-ccp-section-998.
Peter R. Boutin, Tara Leuenberger & Christopher A. Stecher, Section 998: The High-Stakes Settlement Strategy You Need to Know, Daily Journal (Jan. 14, 2025), https://www.dailyjournal.com/article/382847-section-998-the-high-stakes-settlement-strategy-you-need-to-know

San Diego’s 2026 Fire Safety Rules: A Guide for Homeowners

Posted on January 22, 2026 by - Fire

San Diego Fire Regulation Image

San Diego is rolling out major wildfire‑prevention rules in 2026 that will reshape how residents maintain their homes and yards. With extreme fire conditions becoming more common, the city is tightening standards to reduce the risk posed by wind‑driven embers, a leading cause of home ignitions during wildfires.

Below is a clear guide for what homeowners need to know, covering when the rules take effect, how enforcement will work, and who will be most affected.

What Are San Diego’s New “Zone Zero” Fire Safety Requirements?

San Diego’s new regulations focus on the first five feet surrounding a home, a high‑risk zone where embers can easily ignite nearby materials. To reduce this threat, the city will prohibit any combustible materials within this five‑foot perimeter in designated fire‑hazard areas.

Materials that will no longer be allowed in this zone include:

  • Wood fences or trellises
  • Wood shake/ shingle roofs
  • Sheds
  • Flammable shrubs, flowers, and small trees
  • Organic mulch, grass, and synthetic turf

These requirements apply to areas labeled “very high fire hazard severity zones,” which include roughly two‑thirds of San Diego’s homes. This ranges from suburban communities like Scripps Ranch and Carmel Valley to dense urban neighborhoods such as Downtown and Hillcrest.

The new rules stem from statewide legislation (AB 3074), and California’s forestry officials are expected to finalize additional details, including potential plant exemptions, soon.

When Will the New Fire Safety Rules Take Effect?

San Diego is phasing in the requirements on two different timelines:

  • February 2026 — All newly constructed homes must comply
  • February 2027 — All existing homes must comply

City fire officials confirmed that these deadlines are meant to help residents and builders adjust while still moving quickly to reduce risk.

Rental properties face tighter timelines under the city’s accelerated implementation schedule, with immediate compliance required once the ordinance is officially active.

How Will the City Enforce the New Requirements?

San Diego plans to roll out enforcement gradually, focusing first on awareness rather than penalties. With limited staffing, city officials have emphasized education as the primary tool during the early stages.

  1. Emphasis on Homeowner Outreach

Residents can request voluntary home‑risk assessments, where fire‑risk evaluators walk the property and explain how to meet the new standards, from roofing materials to vegetation placement.

  1. Insurance‑Driven Compliance

While city enforcement will ramp up slowly, homeowners may still feel pressure to comply sooner. Insurers may begin requiring proof of compliance before issuing or renewing coverage, especially given rising wildfire‑related claims statewide.

  1. Integration with 2026 Fire Code Updates

These rules will work in tandem with the updated 2025 California Fire Code and Wildland‑Urban Interface Code, both of which become effective locally on January 1, 2026.

Who Will Be Affected by the New Fire Rules?

Because San Diego’s high‑risk zones cover about two‑thirds of the city, most homeowners will be impacted. This includes:

  • Suburban neighborhoods with a history of wildfire exposure
  • Urban areas that have recently been found vulnerable due to ember spread
  • Owners of existing properties, who must comply by 2027
  • Landlords, who may need immediate compliance depending on property type
  • Homeowners in multi‑jurisdictional regions, where rules may vary across county and city lines

New Fire Zone in San Diego County

fig. 1

What San Diego Homeowners Should Do Now

To prepare for the new rules and avoid insurance or compliance headaches, homeowners should begin planning early. Here are practical next steps:

  1. Inspect the first five feet around your home

Look for lumber, fencing, flammable plants, or storage items that will need to be removed.

  1. Budget for landscape or structural updates

Costs may vary, but early preparation helps avoid last‑minute expenses once enforcement begins.

  1. Request a home‑risk assessment

These evaluations offer tailored guidance and can help homeowners understand exactly what must change.

  1. Track updates to statewide wildfire funding

Changes to the California Wildfire Fund may influence insurance premiums or mitigation requirements over time.

Need Legal Advice?

If you’re a landlord or a tenant concerned by these new rules, or impacted by fires in San Diego, contact Hoffman Forde today at (619) 546-7880 or intake@hoffmanforde.com.

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

fig. 1 - City of San Diego

The NAR Settlement Is Reshaping Real Estate

Posted on January 20, 2026 by - Residential Real Estate

The real estate industry is undergoing one of its most significant shifts in decades, driven by a landmark lawsuit and a historic settlement with the National Association of Realtors (NAR). At the center of this change is the Sitzer-Burnett case, which challenged long-standing practices around real estate commissions and sparked nationwide debate. In this first installment, we’ll break down what happened, why it matters, and how the $418 million settlement is reshaping the way agents, buyers, and sellers interact.

Overview of the Sitzer-Burnett Lawsuit

In 2023, the Sitzer-Burnett class-action lawsuit (Class Action Number 29-cv-332) was filed in Missouri federal court by a group of home sellers in the state against NAR and other defendants, including Anywhere, Berkshire Hathaway HomeServices, Keller Williams and RE/MAX. The plaintiffs claimed that real estate commission rates were too high, buyers’ representatives are paid too much, and NAR’s Code of Ethics and MLS Handbook, along with the corporate defendants’ practices, lead to inflated commission rates.

At the October 2023 jury trial, the plaintiffs took particular issue with cooperative compensation, i.e., when a listing broker makes an offer of compensation to the cooperating broker. Offer of compensation does not mean that a specific amount must be paid, the offer can be any amount, including in many cases, $0. NAR introduced evidence to show how the real estate marketplace works and how cooperative compensation benefits consumers. NAR also showed that its rules prohibit anticompetitive behavior and encourage the free market and competition. However, the jury found for the plaintiffs and issued a verdict in the amount of $1.78 billion.

While NAR and the other named defendants believed the verdict was unsupported and was largely driven by legally erroneous rulings by the judge, including legal instructions that prohibited the jury from considering the vast procompetitive benefits that result from NAR’s policies and cooperative compensation practice, these arguments were not persuasive to the jury.

Prior to agreeing to settle the case, NAR investigated appealing the court decision and/or filing Chapter 11 bankruptcy which would only have assisted NAR and not the other named defendants in the lawsuit. Ultimately, while NAR continued to believe that it was not liable for the home seller claims related to broker compensation and that it had strong arguments challenging the Sitzer-Burnett verdict, NAR decided to reach a settlement to put claims to rest for over one million NAR members and other parties who would be released under an accepted settlement.

In order to obtain a national resolution to Sitzer-Burnett judgment and the numerous copycat lawsuits across the United States, the initial Plaintiffs and Defendants in the Burnett-Sitzer case settled their dispute in the amount of $418 million over 4 years (the “Settlement Agreement”).

The $418 Million Settlement Agreement

The key takeaways from the settlement are as follows:

  1. The Settlement Agreement released NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all REALTOR® MLS, and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below, from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions. While not all members were released, more than one million members were included in the release. HomeServices of America and its related companies were not released under NAR’s settlement, nor are employees of the remaining corporate defendants named in the cases covered by this settlement; however, all the remaining defendants secured their own releases subject separate settlement agreements.
  2. The Settlement Agreement also provided a mechanism for nearly all brokerage entities that had a residential transaction volume in 2022 that exceeded $2 billion, and MLS not wholly owned by REALTOR® associations to obtain releases.
  3. Individual members and all brokerages with a NAR member as principal whose residential transaction volume in 2022 was $2 billion or below are released by the Settlement Agreement and not required to opt in.
  4. The Settlement Agreement requires NAR to pay $418 million over approximately four years. While NAR has stated it will not raise membership dues, paying this significant amount will require NAR to cut back on services and ultimately they may have to increase membership dues.
  5. There were brokerages who were not covered by the Settlement Agreement if they had residential transaction volume in 2022 that exceeded $2 billion. Those excluded brokerages were required to establish that they fell below the $2 billion dollar ceiling, agree to opt into the Settlement Agreement, comply with the relevant practice changes for five (5) years after the final judgment approving the proposed Settlement Agreement and the time for appeal of such judgment has run; and not assert any claims against NAR, Member Boards, or REALTOR® MLSs based on any of the practice changes or on facts underlying the broker commission litigation or for seven (7) years after the Class Notice Date.

Based on the Settlement Agreement, the NAR Code of Ethics and Rules were modified by restructuring the manner in which real estate agents’ compensation is paid in an effort to create more transparency in the real estate transaction. The new rules are fairly straightforward.

Shortly after the settlement was announced, it appeared that there would be a total shift with buyers and sellers each paying their respective agents. This just did not occur as sellers were still willing to pay all or a portion of the buyer’s agent compensation in order to attract the most offers for their properties.

The NAR settlement marks a pivotal moment in real estate history, setting the stage for greater transparency and consumer choice. While the lawsuit and $418 million settlement may sound complex, the ultimate goal is simple: to create a fairer, more competitive marketplace. These changes are already reshaping industry practices and understanding them is key for anyone planning to buy or sell a home.

Next Up:
In Vol. 2, we’ll dive into the key changes to real estate compensation rules and what they mean for buyers and sellers.

 

Need Legal Advice?

Real estate matters can be complex and emotionally charged. Hoffman Forde, Attorneys at Law, A.P.C. provides experienced counsel to help clients make informed real estate decisions.

Contact Hoffman Forde today at 619-614-2172 or intake@hoffmanforde.com. We handle a wide variety of residential real estate issues for our clients ranging from transactional issues to informal dispute resolution and litigation. Regardless of your specific needs, trust that our residential real estate attorneys will address your situation with quality, cost-effective solutions.

Disclaimer
The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

U.S. Pauses Immigrant Visa Issuance for Certain Nationalities Citing Public Charge Concerns

Posted on January 15, 2026 by - Immigration

U.S. Pauses Immigrant Visa Issuance for Certain Nationalities Citing Public Charge Concerns

On January 14, 2026, the U.S. Department of State issued internal guidance directing U.S. consular posts worldwide to pause immigrant visa issuance for nationals of certain countries deemed to be at high risk of becoming a public charge. This pause takes effect January 21, 2026, and will remain in place until further notice.

While this policy does not cancel immigrant visa interviews, it significantly alters how consular officers must adjudicate cases for affected applicants.

What Does the New Guidance Do?

Under the guidance, consular officers must refuse immigrant visa applications under INA § 221(g) for nationals of designated countries if the applicant has not already been refused under another ground of inadmissibility. The refusal is procedural and tied to a broader pause on issuance, not necessarily a final determination on eligibility.

Importantly:

  • Interviews should continue as scheduled
  • Cases must still be fully adjudicated, including a public charge analysis under INA § 212(a)(4)
  • Officers are instructed to document cases using the internal designation “#AIVPause”

Countries Affected by the Immigrant Visa Pause

The pause applies to nationals of a wide range of countries, including (but not limited to):

Afghanistan, Albania, Algeria, Armenia, Bangladesh, Belarus, Belize, Bhutan, Bosnia, Brazil, Cameroon, Colombia, Côte d’Ivoire, Democratic Republic of Congo, Egypt, Eritrea, Ethiopia, Georgia, Ghana, Guatemala, Guinea, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Laos, Lebanon, Liberia, Libya, Macedonia, Moldova, Mongolia, Montenegro, Morocco, Nepal, Nicaragua, Nigeria, Pakistan, Republic of Congo, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, Thailand, Togo, Tunisia, Uganda, Uruguay, Uzbekistan, and Yemen.

This list is subject to change as the Department continues its policy review.

Public Charge Review Is Central to This Policy

Consular officers are specifically instructed to closely scrutinize whether an applicant is likely to become a public charge, meaning dependent on U.S. public benefits. Officers must:

  • Evaluate the totality of the circumstances
  • Apply existing public charge standards under 9 FAM 302.8-2
  • Refuse under INA § 212(a)(4) where appropriate

If an applicant overcomes a public charge refusal by submitting additional evidence, the officer must still refuse the case under INA § 221(g) due to the issuance pause.

What About Previously Approved or Printed Visas?

The guidance draws important distinctions:

  • Visas already issued and in the applicant’s possession remain valid
  • Visas printed but not yet released must be refused under § 221(g)
  • Print-authorized but unprinted visas may not be printed
  • No previously issued visas will be revoked under this guidance
  • Only DHS, not consular officers, determines admissibility at a U.S. port of entry

Are There Any Exceptions?

Yes – but they are narrow.

Applicants may still proceed to issuance if:

  • They qualify for a statutory or discretionary exception
  • They can demonstrate their travel would serve specific U.S. national interests
  • They hold dual nationality and apply using a passport from a non-affected country

Any exception must be clearly documented in the consular record.

What This Means for Applicants and Sponsors

This policy does not mean immigrant visas are permanently denied. Instead, it creates:

  • Indefinite delays for many family-based and employment-based applicants
  • Increased importance of financial documentation, affidavits of support, and evidence of self-sufficiency
  • Heightened scrutiny for applicants from affected countries, even where petitions are already approved

Final Thoughts

This pause reflects a broader shift toward stricter enforcement of public charge principles at the consular level. Applicants from affected countries should expect delays, prepare for enhanced financial review, and seek legal guidance before attending immigrant visa interviews.

If you or a family member may be impacted by this policy, consulting with an experienced immigration attorney is strongly recommended to assess options, potential exceptions, and long-term strategy.

Disclaimer

The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

Compass-Anywhere Merger: How It Impacts Buyers and Sellers

Posted on January 13, 2026 by - Residential Real Estate

Compass and Anywhere Merger Reshapes Real Estate text written over home keys and homes

Compass and Brands like Coldwell Banker, Century 21 and Sotheby’s International Realty Merge: How Does It Impact Buyers and Sellers?

The merger between Compass and Anywhere (parent company to Coldwell Banker, Century 21, etc.) creates a real estate giant with enormous reach and hundreds of thousands of agents under one umbrella. While this sounds impressive, it raises serious concerns for consumers. When one brokerage dominates the market, competition shrinks, and that often means fewer choices, less transparency, and higher costs for buyers and sellers.

This consolidation also increases the likelihood of dual agency, which is one of the most controversial practices in real estate. And that’s where the real problems begin.

Dual Agency: Why It’s Bad for the Consumer

Dual agency occurs when the same agent, or even the same brokerage, represents both the buyer and the seller in a transaction. On paper, it sounds efficient. In reality, it strips away the most important protection you have: loyal representation.

Here’s why dual agency is problematic:

  • Conflict of Interest: A single agent representing both the buyer and the seller will find it difficult to fully advocate for both sides. Negotiating price, repairs, and contingencies becomes a balancing act where neither party gets unbiased representation.
  • Compromise of the Agent’s Fiduciary Duty: An agent representing a client has a fiduciary duty to that client.  In a dual representation, that fiduciary duty can be compromised. It can be difficult for a single agent to fight for the highest price for the seller and the lowest price for the buyer at the same time. Even when there are different agents from the same brokerage, the desire to get the transaction closed for the brokerage can get in the way of fully representing the clients’ best interests.
  • Reduced Transparency:   Agents may have information from their client that would affect the other party’s decisions in the transaction. Without the express authorization of their client, an agent cannot disclose this to the other party.  This creates a lack of transparency in the transaction. In short, dual agency benefits the brokerage and the agents involved in the transaction, not the consumer. And with Compass and Anywhere merging, the chances of encountering this scenario skyrocket.

Protect Your Real Estate Process

So, what can you do to protect yourself in this new landscape?

  1. Avoid Dual Agency
    Ask upfront: “Will you or your brokerage represent both sides?” If the answer is yes, consider walking away. You deserve an agent who is 100% in your corner. The consumer still retains the right to select the broker or agent that the consumer wants to work with and disallowing dual agency is well within the consumer’s discretion.  In addition, a seller when considering listing with a brokerage can negotiate that the broker may not represent the buyer.
  2. Insist on Full Disclosure
    If dual agency is being considered in your transaction, demand written confirmation of what your agent can and cannot do for you. Know the limits before you sign.
  3. Shop Around
    Don’t assume bigger is better. Independent brokerages and smaller firms often provide more personalized service and fewer conflicts of interest. Do your homework before hiring a real estate agent.
  4. Get Everything in Writing
    From compensation agreements to marketing plans, document every promise. In a market dominated by mega-brokerages, clarity is your best defense.

Bottom Line

The Compass-Anywhere merger isn’t just a headline, it’s a shift that could reshape how real estate deals happen. For buyers and sellers, the biggest risk isn’t technology or branding, it’s losing the advocate you thought you had. Dual agency turns your agent into a referee instead of a champion. And in one of the biggest financial decisions of your life, that’s a risk you shouldn’t take.

Need Legal Advice?

Real estate matters can be complex and emotionally charged. Hoffman Forde, Attorneys at Law, A.P.C. provides experienced counsel to help clients make informed real estate decisions.

Contact Hoffman Forde today at 619-546-7880. We handle a wide variety of residential real estate issues for our clients ranging from transactional issues to informal dispute resolution and litigation. Regardless of your specific needs, trust that our residential real estate attorneys will address your situation with quality, cost-effective solutions.

Disclaimer
The information in this post is considered attorney advertising under applicable California law. The contents of this post are for informational purposes only and do not constitute legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this website constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.