California Real Estate: New Laws in 2013Real Estate Influence
February 8, 2013 — 862 views
The real estate scene in California is going through a phase of mass transition these days. The main factors contributing to this transition are the increasing demand from investors and buyers as well as the decreasing supply of real estates. This is because of the fact that the mortgage rates in California have gone down drastically, making the properties more affordable. These factors will continue to change the market in 2013.
New Laws That Will Be Affecting Real Estate Market
The homeowners are to be protected by the new laws that are passed for the year 2013. The Home Owner Bill of Rights will try to protect families from foreclosures on their homes.
New Real Estate Commissioner Regulations
The California department of real estate license provides and renews all licenses to brokers and real estate salespeople. The new real estate commissioner regulations have made some amendments in the laws pertaining to the licensing and purchasing of real estate properties. As per the new Commissioner Regulations, a number of terms involving the real estate industry, like applicant, real estate examination, advertising, department, code and several others have been given new definitions. It is imperative for any new aspirant to entirely comprehend all the latest set of laws if they want to make an up-to-date approach towards obtaining a license from the department of real estates.
New Law Laws for Tenants and Landlords
Three new California real estate laws have been passed for tenants and landlords for the year 2013. They are elaborated below.
Senate Bill 1191 – This law states that the landlords should disclose a notice of default to future tenants before carrying out the lease agreement. This is applicable to landlords renting out residential properties having one to four units. There is no need for this notice to be disclosed to current tenants. However, if such a notice is not disclosed before executing the agreement, the tenant may choose to annul the agreement and recover the greater of double the amount of total damages or one month’s rent, in addition to all rent paid in advance. If there has been no foreclosure sale, the tenant can withhold one month’s rent from future rent amounts. The property managers are not responsible to disclose the notice, unless they are instructed to do so in writing.
Assembly Bill 2610 – This law states that tenants occupying a rental accommodation should be given 90 days’ written notice for termination after foreclosure of the property. Tenants with a fixed term lease can remain in the accommodation till the end of the lease with all the rights and obligations in the original agreement. However, a fixed term tenant can also be given a 90 day notice in certain situations. These are: (1) when the person purchasing the property will occupy it as a chief residence, (2) when the borrower or his child, parent, or spouse is the tenant, (3) when the lease made was not a proper arm’s length transaction, and (4) when the rent required by the lease is far below the fair market rates. The purchaser has to prove that any of these situations are met for the tenant to be given the 90 day notice.
Assembly Bill 2521 – This law empowers the landlords to dispose the property abandoned by tenants, if the value of such property is below $700. If the property is valued at above $700, then the landlord has to sell this at a public auction rather than being able to retain it or dispose of it. Previously, this value was $300. However, if the tenant reclaims the property within 2 days of giving up the accommodation, then according to this law, the landlord is not entitled to charge storage fees for the property. But this law requires that the notice for termination from the landlord should contain specific written instructions about the recovery of abandoned property of the tenant.