New California Laws for 2017 – Part I

 

Advertising – Uniform Standards AB 1650  creates uniform advertising standards across a variety of media and types.

Beginning January 1, 2018, all first point of contact solicitation materials must include:

  • the name and number of the licensee and
  • the responsible broker’s “identity,” meaning the name under which the broker is currently licensed by the BRE and conducts business in general or is a substantial division of the real estate f The broker’s license number is optional.

There is no longer an exception for advertisements in print or electronic media; or for newspapers and magazines. However, “for sale,” “open house,” rent, lease, and directional signs that contain no licensee information or only the broker’s information are OK.

 

ADVERTISING Team Names SB 710 corrects existing law regulating team name and agent-owned DBA advertising such that only the responsible broker’s name must be displayed alongside the team name or agent-owned DBA. The display of the responsible broker’s license number is optional.

 

BROKER ASSOCIATES Searchable Information AB 2330  Beginning January 1, 2018, CalBRE’s public licensee information, as provided on CalBRE’s website, will indicate whether a licensee is an “associate licensee” and, if the associate licensee is a broker will identify each responsible broker with whom the licensee is contractually associated.

Additionally, this law requires the responsible broker to immediately notify CalBRE in writing whenever a broker-associate is hired or terminated.

 

COMMON INTEREST DEVELOPMENTS  Owner to Provide Contact Information to HOA SB 918 Requires the owner of a separate interest in a common interest development to annually provide the association with specified written information for the purpose of receiving notices from the association.

1)  Requires an owner of a separate interest to, on an annual basis, provide written notice to the association of all of the following:

  • The address or addresses to which notices from the association are to be delivered;
  • An alternate or secondary address to which notices from the association are to be delivered;
  • 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
  • Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the parcel is undeveloped land.

2)  Requires an association to solicit annual notices of each owner and, at least 30 days prior to making certain required disclosures, enter the data into its books and records.

  • Specifies that if an owner fails to provide the information specified in the above provision, the property address shall be deemed to be the mailing address to which notices are to be deliver

DISCIPLINARY ACTION RECORDS Petition Process to Remove Disciplinary Action Records from Public Profile after 10 Years  AB 1807 creates a process by which beginning January 1, 2018, a licensee may petition CalBRE to remove a past disciplinary action record from his or her online profile after 10 years. CalBRE retains discretion to grant the petition.

 

DISCLOSURES Death of Occupant Rule Clarified The existing law concerning disclosure of death of an occupant is clarified by AB 73  to say that the death of an occupant, or the manner of death, occurring more than three years prior to an offer to purchase is not a material fact which requires disclosure.

 

DISCLOSURES Liability Protections of Environmental Hazards Booklet Extended to Landlords

Liability protections for delivery of the Residential Environmental Hazards booklet extended to include leases of more than one year.

 AB 1750 clarifies that the liability protections for delivery of the Residential Environmental Hazards booklet extend to leases of more than one year’s duration. Under Civil Code 2079.7 when a seller or broker elects to deliver this booklet the information is deemed legally adequate to inform the transferee regarding common environmental hazards such as asbestos, formaldehyde, hazardous waste, household hazardous waste, lead, mold and radon, and additional general information on these issues is not required (unless the broker or seller has actual knowledge). This protection now includes leases of more than one year. The delivery of this booklet is optional.

The booklet is intended for “consumers” and is described as a “consumer information booklet.” Nonetheless the new law would make its protections applicable to “real property” which includes all commercial and vacant land properties, but not multi-unit residential rentals of five units or more.

LICENSING Eliminates References to “Salesmen”; Issuance of License for Person Previously cited  “Real estate salesman” is now renamed “real estate person” in the real estate law.

Prohibits issuance of a real estate license to a person who was cited for the illegal practice of real estate and either the terms of the citation have not been complied with or an unpaid fine remains outstanding.

The Real Estate Law includes outdated terminology that does not reflect both genders. AB 685 makes some necessary technical corrections, which include eliminating references to “salesman” and “salesmen” and instead replacing those with “salesperson” and “salespersons,” respectively.

billboards-art-blah-2014LICENSING Outdoor Advertising Exemption AB 1381 An “outdoor advertising representative,” defined as an employee of a corporation that holds an outdoor advertising business license, is exempt from BRE licensing requirements when arranging for lease or transfer of real property which is solely for the placement of an advertising display and where the owner or operator of the advertising display meets minimum insurance requirements.

An “outdoor advertising representative” is excluded from BRE licensing requirements in connection with specified transactions.

 

LICENSING Retired Status Any board under the Department of Consumer Affairs (DCA),

including the Bureau of Real Estate, may establish the category of “retired” licensees.

AB 2859 would authorize any of the boards within the DCA to establish by regulation a system for a retired category of license for persons who are not actively engaged in the practice of their profession or vocation. This law does not require boards to offer a retired license.

TAX Parcel Tax Vote Notification Requires notice of a new parcel tax to the owner, if that owner does not reside within the jurisdictional boundaries of the taxing entity. Under current law, resident property owners receive notice of proposed parcel taxes with receipt of their ballot pamphlet while non-resident property owners do not receive any notice whatsoever.

AB 2476 requires that non-resident owners be provided with notice of a new parcel tax which includes (1) The amount or rate of the parcel tax in sufficient detail to allow each property owner to calculate the amount of the tax to be levied against the owner’s property. (2) The method and frequency for collecting the parcel tax, and the duration of time during which the parcel tax will be imposed. (3) The telephone number and address of an individual, office, or organization that interested persons may contact to receive additional information about the parcel tax.

misting-and-oversprayWATER USE Fines may be imposed for “excessive water use.” SB 814 requires each
public/private urban retail water supplier to define “excessive water use” by a residential customer and permits these water suppliers to fine residential customers up to $500 per 748 gallons (100 cubic feet) of water used above the defined local standard for excessive water use during a drought emergency.