Summary
The speaker Gov Hutchinson provides updates on California real estate law changes, focusing on buyer broker agreements, fire zones, HOA regulations, cash transactions, lease agreements, and rent control. Key changes include the extension of buyer broker contract requirements to all property types, the defensible space inspection requirements, and regulations on HOAs.
Key topics
Buyer Broker Agreements
Showing properties without a contract: Now applies to all property types (residential, commercial, land, industrial, farm).
Contracts can’t be shown without a buyer broker, with the exception of showing your own listings or listings within your brokerage.
Contract Length: Maximum length changing from three months to 90 days in November.
Property Show Raymond: A short version of the buyer contract. Good for open houses.
Buyer’s Agent Compensation: Buyer must agree to the amount in the contract, typically paid via seller credit (paragraph 3G3). Cannot ask seller to pay more than buyer agreed to pay.
New construction: Buyer broker contract applies when showing properties. Research the builder’s offerings beforehand.
Listing Agent Responsibilities: Not responsible for verifying the buyer broker contract.
Fire Zones
Mapping: The entire state is now mapped for fire risk.
Defensible Space: Required in high and very high fire zones.
Fire and Defensible Space Form: Updated with 12 new questions.
Defensible Space Inspection: Fire departments are confused, they incorrectly think you can’t sell without billing.
Local Ordinances: Many communities have their own defensible space rules.
HOA Considerations: If the property is a condo the seller should disclose to the buyer but anticipate that the fire department will say no.
HOA Regulations
Balcony Inspections: Condos with balconies six feet off the ground must be inspected. Sellers must disclose the inspection status. Starting in January, HOAs must provide a standard disclosure form.
Violation Fines: Maximum fine capped at $100, unless the violation affects health and safety.
Cash Transactions
Anti-Drug Dealer Law: Effective December, all-cash buyers and sellers must provide information to the title company for federal reporting.
Lease Agreements
Photos: Landlords must take photos of the property before move-in, at move-out, and after repairs. Failure to provide photos can prevent deducting repair costs from the security deposit.
Credit Reporting: Corporate landlords must offer to report on-time rent payments to credit bureaus. Can charge the tenant $10/month.
Rent Control
AB 1482 rent cap is 5% + inflation number which changes every August. Number is 8% for Riverside, San Bernardino at 7.5. For San Diego County, 8.8.
LA County: Rent rules are very complicated.
Tenants in the property for 12 months are tenants for life.
Exceptions: New buildings (under 15 years), single-family homes, bedrooms without private entrances.
Bribery: It is perfectly legal to bribe tenants to leave.
Escrow and Commission
CDA (Commission Disbursement Authorization): More issues from the month.
Cryptocurrency: Stay away from it.
Cannot ask a buyer to compensate an agent for their trouble, it’s a gum buyer content.
Selling rental properties, if you’re a new owner you can kick them out in any county other than LA. If you want to preserve your ability to do so, then churn tenants.
