Recent Changes to California Real Estate Law

Clarification - Effective 9/25/2016:

No Disclosure Required of a Death 3 Years or More Prior to a Purchase Offer

            Clarification in law provides that the death of an occupant, or the manner of death, occurring more than 3 years prior to an offer to purchase is not a material fact that must be disclosed.  No disclosure is required where an occupant had HIV or died of AIDS-related complications 3 years before an offer is made.

Effective 1/1/2017:

Lessor of Commercial Property Must Disclose Inspection by Certified Access Specialist

            This law requires a lessor to state in a commercial lease whether the property was inspected by a Certified Access Specialist, and if it was inspected and a report issued that meets applicable standards, the owner or lessor must provide a copy of the report to the tenant.  The tenant has a right to review the report prior to signing the lease, and may cancel the lease within 72 hours after signing based upon the report.

No Public Access to Unlawful Detainer Records Unless Plaintiff Prevails

            Previously, the law permanently restricted access to a UD action public records if the defendant/tenant prevails within 60 days of the filing of the action.  Now the UD records are available only if (1) the plaintiff prevails within 60 days, or (2) by order of the court when judgment is entered after a trial more than 60 days after the complaint was filed.  If a proof of service is not filed within 60 days and the action is dismissed, no public access to the records. The court can also bar access to the court records if the parties stipulate.

Landlord Protected from Liability for Environmental Hazards

            A landlord is protected from disclosure liability if the tenant is provided with the Residential Environmental Hazards booklet for leases of more than one year's duration under Civil Code § 2079.7, and it covers asbestos, lead, mold, and other hazards, unless there is actual knowledge of such hazards.  Includes all commercial and vacant land properties, but not multi-unit residential rentals of 5 units or more.

Owner Required to Provide HOA With Address Information

            New Civil Code § 4041 requires an owner of a separate interest in a HOA to provide written notice to the HOA on an annual basis, presumably to its management company, of the following information:

            1.         The address or addresses to which notices from the HOA are to           be delivered:

            2.         An alternate or secondary address to which notices from the HOA are to be delivered;

            3.         The name and address of an owner's legal representative, if any, including any person with power of attorney or other person who can be contacted in the event of the owner's extended absence from the separate interest; and

            4.         Whether the separate interest is owner-occupied, is being rented, if the parcel is developed by vacant, or if the parcel is undeveloped land.

            The HOA is required to request the information.

Maximum Fee for a Notary Public Increased to $15 for Deeds and Power of Attorneys

            Currently, the law limits a notary public fee for each signature to $10, but the fee may be as much as $15 for taking an acknowledgment or proof of a deed, or other instrument, that includes the notary's seal, and for certifying a copy of a power of attorney.

Effective 7/1/2017 for New Tenants, and 1/1/2018 for Existing Tenants:

Landlord Barred From Showing or Renting Vacant Units If Knowledge of Bedbugs

            If a landlord knows about bedbug infestation, the landlord cannot show or rent the vacant unit.  But there is no requirement to inspect a dwelling unit or common areas if the landlord does not have notice of suspected or actual infestation. 

Effective 1/1/2018:

Specified First Point of Contact Solicitation Materials

            All first point of contact solicitation materials must include:

            1.         name and number of the licensee;

            2.         responsible broker's "identity" and name of under which the broker is currently licensed, but broker's license number is optional.

            No longer an exemption for electronic media, or for newspapers and magazines. Signs such as "for sale" and "Open House" do not have to contain the agent's name or license information, but must contain the responsible broker's name, with his license optional, unless there is no licensee identification information.

Licensee May Petition BRE to Remove Past Disciplinary Action After 10 Years

            Currently, a discipline notice remains against a licensee's name in the BRE online database indefinitely.  Under the new law, a licensee may send a written request and the fee to request removal of disciplinary actions 10 years after the posting of the violation.  This enables the licensee to attempt to prove sufficient rehabilitation and that the licensee is no longer a credible risk to members of the public.