New 2012 Real Estate Laws!

By January 4, 2012 Real Estate Laws, Title Insurance

Effective January 1:

AB 771— HOA Excessive Document Fees

Home Owner Associations can only collect a reasonable fee for procuring, preparing, reproducing and delivering HOA disclosures and governing documents when a home is being sold. This new law also requires that an HOA give estimates of their fees up front, and prohibits the HOA or a third party from tacking on other fees, fines, assessments or nonessential documents as a precondition for providing the HOA documents. Likewise, the HOA cannot charge an extra fee for electronic delivery of this information if the HOA maintains it electronically.

SB 150 Common-Interest Development/Condo Rentals

Owners of units in a common-interest development (usually a condominium) cannot be prohibited from renting or leasing their units unless it was restricted before they took ownership. SB 15o does not apply to rental restrictions before January 1, 2012.

SB 150 also requires that owners of condo units, prior to renting them, provide to their HOA proof of their purchase date as well as contact information of their prospective tenants. Certain changes of title—probate, spousal, parent-t0-child, adding a joint tenant, and other transfers exempt from property tax reassessment—do not reset the date of ownership.

Effective April 1:

SB 4—Foreclosure Sale

A Notice of Trustee Sale (NOT), which apprises homeowners as to the date and location of a foreclosure auction, must provide more user-friendly information on how to seek a postponement. These notices must also specify the risk for potential buyers of a foreclosure.

SB 4 also will also require a bank or their authorized servicing agents to provide timely information to anyone via internet, telephone recording or other free services regarding sales dates and postponements.

Click here to view all new laws.