2024 Changes to California Real Estate Laws: A Comprehensive Guide
Introduction
California real estate laws are constantly evolving, with significant changes impacting buyers, sellers, and real estate professionals. This guide will provide an overview of key California real estate law changes in 2024, including updates to listing agreements, disclosure requirements, accessory dwelling units (ADUs), remote online notarization, and fire hazard disclosures.
1. Residential Exclusive Listing Agreements Act (AB-1345)
Limitations: Exclusive listing agreements for residential properties (1-4 units) cannot exceed 24 months, with renewals capped at 12 months.
Prohibitions: Automatic extensions of exclusive listings and recording or filing agreements for residential properties are prohibited.
Penalties: Violating these provisions could result in penalties for licensed real estate professionals.
2. Disclosure Requirements for Residential Flippers (AB-968)
Disclosure Obligations: Flippers of residential properties must disclose recent repairs and renovations in addition to existing disclosure obligations.
Applicability: Applies to properties resold within 18 months of closing.
Disclosure Details: Must include a list of all repairs and renovations made to the property during that time, the name of each contractor who worked on the project, and whether or not permits were obtained.
3. Accessory Dwelling Units (ADUs) Regulations (AB-1033 & SB-976)
Separate Sale: AB-1033 allows local agencies to adopt ordinances permitting the separate sale of ADUs from primary residences as condominiums.
Owner-Occupancy: SB-976 makes permanent the prohibition on local governments from requiring owner-occupancy on parcels containing ADUs, facilitating ADU development and rental.
4. Remote Online Notarization (SB-696)
Expansion: Authorizes notaries to perform acts originating from other states, Federally-recognized Indian tribes, foreign states, or under federal law, as if conducted within California.
Online Notarizations: Allows notaries to apply for registration with the Secretary of State to conduct online notarizations after meeting specific requirements.
Registration and Penalties: Mandates entities offering online notarization services to register with the Secretary of State, ensuring compliance with relevant laws and establishing civil penalties for violations.
5. New Fire Hazard Disclosures (AB-1280)
Disclosure Requirements: Sellers must specify whether the property is located in a high or very high fire hazard severity zone on the natural hazard disclosure statement.
Additional Information: The disclosure must indicate if the property is situated in a high fire hazard severity zone in a state responsibility area, a very high fire hazard severity zone in a state responsibility area, or a very high fire hazard severity zone in a local responsibility area.
Conclusion
The 2024 changes to California real estate law signify a concerted effort to address pressing issues, including housing affordability, environmental sustainability, and fair housing practices. By prioritizing tenant protections, promoting sustainability, combating discrimination, enhancing disclosure requirements, and embracing technology, California aims to foster a more equitable, transparent, and resilient real estate landscape. Real estate professionals and stakeholders must familiarize themselves with these updates to navigate the evolving regulatory framework effectively and uphold the highest standards of professionalism and integrity in their practices.
Additional Resources
For more information on changes to real estate laws in California in 2024, visit the California Department of Real Estate.
Disclaimer
This article is for general purposes only and is not intended to serve as legal advice. Always consult with the relevant professionals when contemplating a real estate transaction in California. By understanding these changes and adhering to the new regulations, you can ensure compliance and navigate the California real estate market effectively.
