NEW LAWS IN CALIFORNIA REAL ESTATE
Below are summaries of new state laws that affect real estate licensees and applicants. Unless otherwise noted, the laws take effect January 1, 2023.
Assembly Bill (AB) 1410 Disallows the governing documents of a homeowner’s association (HOA) from prohibiting members and residents from discussing their common interest development (CID) on social media, including discussions that are critical of the association or governance. It also makes unenforceable any provisions of HOA governing documents that prohibit owners from renting a portion of the owner occupied space for a period of more than 30 days. Lastly, it prevents an HOA from pursuing enforcement actions for violations during a declared emergency, if that emergency makes it unsafe to fix the violation; this will not apply in cases of nonpayment of assessments. AB 1837 Makes changes to the process established by Senate Bill 1079 in 2020, which allows existing tenants, prospective owner-occupants, nonprofit organizations, and local governments, among others, up to 45 days after a home foreclosure auction to make an offer that meets the winning bid. It modifies the types of nonprofit entities that qualify as eligible bidders and disallows certain limited liability companies, and all limited partnerships, from bidding. It also subjects homes purchased by certain eligible bidders to a recorded affordability covenant and creates an enforcement mechanism for the SB 1079 process through the Attorney General. AB 2170 Provides an initial 30-day window for eligible bidders to purchase properties acquired by lending institutions through foreclosure, also known as “real estate owned” (REO) properties. The bill requires institutions that foreclose on 175 or more properties per year to only accept offers from prospective owner-occupants, qualified non-profits, government entities, and other affordable housing providers for the first 30 days that an REO property is listed for sale. It also requires institutions to respond to each offer in writing and prohibits institutions from completing a bundled sale of more than one foreclosed property. AB 2503 Requires the California Law Revision Commission, by December 31, 2024, to deliver a study to the Legislature examining the establishment of consistent terminology in California law to describe the parties to an agreement, lease, or contract for the rental of residential real estate property, including mobile homes. AB 2559 Defines and specifies the elements that must be included in a reusable tenant screening report. If a landlord accepts a reusable screening report, the bill prohibits them from charging an application screening fee or a fee to access the reusable report. The bill does not require that landlords accept a reusable tenant screening report and any local rule that provides more protection to the applicant prevails.
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