| Jan 29, 2009 |
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NEW LAWS FOR 2008-09 AFFECTING
REALTORS® AND INVESTMENT PROPERTY OWNERS
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With the housing market taking center stage among the nation’s concerns, both Congress and California’s State Legislature have enacted important new laws affecting Realtors®. To view the full text of a California Legislative bill, go to www.leginfo.ca.gov.
Emergency Economic Stabilization Act:
This bill was enacted on October 3, 2008 and earmarks $700 billion for the Treasury Secretary and other federal agencies are charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications. This law also has designed the HOPE for Homeowners program for qualified homeowners. This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from 12/31/09 to 12/31/12 (Source H.R. 1424).
DRE Can Discipline Licensee for Inflating BPOs:
 It is our continuing mission to keep our clients well informed at all times as to what is pertinent and noteworthy in the 1031 Exchange and Real Estate industries at all times Pamela Baldwin-Flores,
AVP of Accommodator Finance Co |
Effective January 1, 2009, the DRE can suspend or revoke a real estate license if the licensee creates an inaccurate opinion of value (Broker Price Opinion or BPO) for a short sale of residential real property in order to manipulate the lender to reject the short sale or to acquire a financial or business advantage such as obtaining a listing agreement.
Duty to Disclose Agent is Arranging Financing:
Beginning January 1, 2009, a listing or selling agent who undertakes to arrange financing for the sale, lease or exchange of real property (or an agent arranging financing who undertakes to act as the listing or selling agent) MUST, within 24 hours, provide a written disclosure of that role and any related loan transactions to all parties to the sale, lease or exchange. Senate Bill 1737.
Pool Drains Must be Properly Covered:
As a red alert for apartment and condominium owners and managers, all U.S. “public pools and spas” as defined must be equipped with anti-entrapment drain covers no later than December 19, 2008. Source S. 1771.
Tenant Victimized by Domestic Violence Can Terminate Tenancy:
Effective September 27, 2008, a tenant can terminate a tenancy upon giving a 30-day written notice to terminate, if the notice also informs the landlord that the tenant or a household member has been a victim of domestic violence, sexual assault, or stalking as defined. The tenant must attach to the notice
copy of a temporary restraining order, emergency protective order, or police report issued within the last 60 days. The tenant is also entitled to a proration of the last month’s rent if, within those last 30 days, the tenant vacates and the landlord re-rents the premises to a new tenant. This law will sunset on January 1, 2012. Assembly Bill 2052.
Other Significant Laws:
Some additional new laws of interest include, but are not limited to, Amendments to the 3-1/3 percent California Withholding Requirement for Installment Sales and Non-California partnerships and corporations (Assembly Bill 3078); Bonding Insurance and other requirements for 1031 Exchange Facilitators (Senate Bill 1007); Liquidated Damages rules for High Rise Condominiums over $1 million (Assembly Bill 2020) and an increase in the fine for acting as a licensee without a license from $10,000 to $20,000 (Senate Bill 1448).
Excerpts taken from Realegal® which is published by the California Association of Realtors®. For further detailed information on these or other topics, please feel free to contact your local Accommodator Finance Co. representative.
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