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Fall 2025 New and Updated Forms for California Real Estate
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Mon, 20 Oct 2025 23:36:25 +0000
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As the seasons change, so does California real property law! As of September 2025, there are updates to existing landlord-tenant forms and residential purchase agreements, with two forms taking effect December 2025, and one new form to be included with purchase agreements. Thanks to the California Association of Realtors (“C.A.R.”), any changes to real property laws are reflected in updated or new forms. C.A.R. consistently keeps the forms updated so the consumer can be sure that the forms they use are accurate. The attorneys at Brewer Offord & Pedersen LLP are licensed brokers, which means we have access to ALL C.A.R. forms. Below is a description of the amended forms and new forms, and explanation for the changes themselves. Amended Landlord-Tenant Forms (Beginning September 2025) When a landlord is faced with a tenant who has violated a lease term or has failed to timely pay rent, as an example, the landlord may seek to have the tenant cure that violation. The means by which to have the tenant cure that violation is by serving a notice on the tenant. For example, if a tenant fails to timely pay rent, the landlord must serve on the tenant a “Three Day Notice […]
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As the seasons change, so does California real property law! As of September 2025, there are updates to existing landlord-tenant forms and residential purchase agreements, with two forms taking effect December 2025, and one new form to be included with purchase agreements. Thanks to the California Association of Realtors (“C.A.R.”), any changes to real property laws are reflected in updated or new forms. C.A.R. consistently keeps the forms updated so the consumer can be sure that the forms they use are accurate. The attorneys at Brewer Offord & Pedersen LLP are licensed brokers, which means we have access to ALL C.A.R. forms. Below is a description of the amended forms and new forms, and explanation for the changes themselves.
Amended Landlord-Tenant Forms (Beginning September 2025)
When a landlord is faced with a tenant who has violated a lease term or has failed to timely pay rent, as an example, the landlord may seek to have the tenant cure that violation. The means by which to have the tenant cure that violation is by serving a notice on the tenant. For example, if a tenant fails to timely pay rent, the landlord must serve on the tenant a “Three Day Notice to Pay Rent of Quit,” giving the tenant the opportunity to “cure” the violation before initiating legal action. The following “Notices” are updated to inform the landlord and tenant of changes, and have been implemented as of September 2025.
Notice to Pay Rent or Quit: Aside from minimal grammatical changes, the largest update advises, “Do not use electronic signatures on this form,” apparently requiring wet signatures in its place. That is a vast deviation from what has been accepted and creates a large burden on landlords to have wet or non e-signatures on the Notice. The next update advises landlords of when and how to use this form. Specifically, the new form warns the landlord that the form cannot be used for past-due rent that are more than a year old. This is consistent with Code of Civil Procedure § 1161. Finally, the notice advises landlords that the form may not be accepted in certain California jurisdictions. That may be a result of individual city or county-specific tenant protections in place.
Notice to Cure or Perform Covenant or Quit: Similar to the Three Day Notice to Pay or Quit, this Notices advised landlords that it cannot be used for past-due rent over one year and that the form cannot be signed electronically. It also advises the landlord that the form may not be used in certain jurisdictions due to individual protections.
Notice to Quit: As with the Three Day Notices above, electronic signatures are not permitted and a similar warning regarding California jurisdictions is included. Within the notice itself, it provides the tenant (and landlord) more clarity as to how to calculate three days. Specifically, it states, “Within 3 days, starting the day after the date of service of this Notice, and excluding Saturdays, Sundays, and other judicial holidays, you are required to…” With this clarification there can be no ambiguity as to when the “three day clock” begins.
Amended Purchase Agreement Forms (Beginning September 2025)
Multiple Listing Service Addendum: this form advises the seller of what the Multiple Listing Service (“MLS”) is and how it benefits the properties being listed on the MLS. Changes to the form include more basic information about the MLS, and the rules the MLS must follow under the National Association of Realtors.
Included in the amended MLS Addendum are new sections:
(3) “Public and Private Marketing of Property; ‘Clear Cooperation Policy;’”
(4) “Property Listing Information on the Internet;”
(5) “Marketing Options;” and;
(6) “Photographs.”
These four new sections advise the seller that the property will be listed on a public MLS and the marketing efforts to follow, such as flyers, yard signs, digital marketing, etc., with the option of opting out of said marketing or engaged in limited marketing options. The seller is also informed of the levels of marketing they can engage in such as “full exposure,” “coming soon” status, and days on the market. The MLS Addendum further warns sellers that prospective buyers may come through the property and take photographs, which the broker cannot control. Finally, the MLS Addendum now includes a “Seller Instructions to Broker” which puts the marketing control in the hands of the seller. The aforementioned sections advise seller of their options, and the Seller Instructions inform the broker what marketing efforts and levels seller wants to engage in. The purpose of this form is to create more transparency and communication between seller and their broker as to how the property will be marketed and advertised, ensuring the property receives the level of exposure the seller prefers.
Amended Purchase Agreement Forms (Beginning December 2025)
Buyer Representation and Broker Compensation Agreement: this form in and of itself is a relatively new form due to the recent change in buyer’s agent compensation due to a NAR settlement with the Department of Justice last summer. The changes in this form are relatively brief.
The first being the representation period for a buyer who is not a corporation, LLC, or partnership. If the buyer is none of the aforementioned, i.e. a natural person or trust, then representation will end on the date chosen between the buyer and their agent, or 90 days from the beginning date of representation- whichever is sooner.
The second change is regarding the Continued Right to Payment for Broker Involved Properties, meaning if a buyer purchases a property that was shown to them by their broker, but perhaps the buyer did not make an offer until after the representation expired. The form ensures the broker will still be compensated for their time and effort. The continuation period for payment will be an agreed upon amount of days after the representation period expires (if the agreement is not cancelled) or on the specified cancellation date (if the agreement is cancelled). Again, the purpose of the changes to this form is to ensure full transparency between the agent and their buyer so there will (hopefully) be no ambiguity as to the terms of the representation.
Seller Property Questionnaire: this form is used by the seller to advise the buyer of known material facts of the property that affect the value or desirability of the property. For example, if a seller knows of plumbing issues in the property, the seller will check the “yes” box for Section 8A. The latest inclusion of material facts to disclose is found under Section 17 “Governmental” which asks if the seller is aware of any state or local requirements or restrictions to the future replacement of existing gas-powered appliances that are transferred with the property. The purpose of this addition is consistent with SB 382, set to take effect January 2026, which is to advise prospective buyers of potential hazardous appliances.
Residential Purchase Agreement: this form, of course, is used by the buyer to make an offer to purchase the property. Aside from clarifications on subsections for certain paragraphs, the largest changes can be found in section 11, 13, and 19.Section 11, titled “Statutory and Other Disclosures (including Lead-Based Paint Hazard Disclosures) and Cancellation Rights,” adds a new subsection, “E. Electrical System Inspection Advise Disclosure.” This new subsection includes an advisory to the buyer that it may be advisable to seek the opinion of a qualified professional to inspect the electrical systems of any building, including the main panel, subpanels and wiring. It’s not a requirement, but it puts further onus on the buyer to do their due diligence, especially if they intend to make upgrades to the electrical system, such as adding solar panels.
Section 13, titled “Title and Vesting,” includes a new subsection, “D. Federal Reporting Requirement- Geographic Targeting Order.” This subsection correlates to a brand new form that is now included with all purchase agreements (more on that below). It states that if a buyer is a legal entity, purchasing real property containing 1-4 residential units or of vacant land for which residential units will be built, and the purchase price is at least $300,000 and made without a bank loan or other form of external financing, a Geographic Targeting Order (“GTO”) issued by the Financial Crimes Enforcement Network of the US Department of Treasury requires title companies to collect and report certain information about the Buyer, and the buyer must agree to cooperate.
Additionally, subsection “E. Seller Delivery of Information” states that a seller must give escrow any necessary information to clear title within seven days after requested for the GTO.
Finally, section 19, “Joint Escrow Instructions to Escrow Holder,” include a new subsection titled, “H. Federal Reporting Requirement- Anti-Money Laundering.” This new subsection expands on 13.D by explaining the situations in title and escrow may have to report to the Financial Crimes Enforcement Network of the US Department of Treasury. 19.I, “Delivery of Federal Reporting Information to Escrow; Consequences of Failure to Provide,” also expands on 13.E elaborates on the circumstances in which the seller must cooperate with escrow to provide information to the Financial Crimes Enforcement Network of the US Department of Treasury.
New Purchase Agreement Form (Beginning September 2025)
Federal Reporting Requirement Purchase Addendum: this is an entirely new form that is now required for certain purchases by certain buyers. Consistent with the new subsections in the Residential Purchase Agreement discussed above, this form advises both buyer and seller that if the property being purchased is real property with 1-4 residential units, or is vacant land for which the buyer intends to build residential units, or shares in a cooperative housing corporation; the buyer is a legal entity; and the buyer is making an all-cash offer, then escrow may be required to report the transaction to the Financial Crimes Enforcement Network of the US Department of Treasury. Both buyer and seller must agree to the terms of this reporting addendum, and agree to fully cooperate if necessary.
If you are a landlord or tenant, or buyer or seller of residential real property, it is important that your realtor or property manager have the most up to date forms at their disposal. As is detailed above, there are certain changes that require cooperation that is non-negotiable. If you have any questions or concerns regarding the revised and new forms, we are ready to assist in any way we can.
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Navigating California’s AB 2801: Updates to Security Deposit Procedures
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Thu, 16 Oct 2025 14:46:07 +0000
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As a housing provider or property manager in California, staying ahead of legislative changes is not just prudent—it’s essential for protecting your investments and avoiding costly disputes. With the full implementation of Assembly Bill 2801 (AB 2801) now in effect as of July 1, 2025, the rules governing security deposits have undergone significant enhancements aimed at promoting transparency and fairness. Signed into law by Governor Newsom on September 19, 2024, this bill amends Civil Code Section 1950.5 and introduces mandatory photographic documentation requirements that could fundamentally alter how you handle move-ins, move-outs, and deposit dispositions. In this article, I’ll break down the key provisions of AB 2801, explain their practical implications, and offer steps to ensure compliance. Our firm has been advising clients like you on these evolving regulations daily, and we’re here to help you implement best practices that minimize risk while maintaining strong tenant relationships. At its core, AB 2801 addresses one of the most common pain points in landlord-tenant interactions: disputes over security deposit deductions. We see this type of dispute come through our firm regularly. Prior to this law, landlords could itemize charges based on written descriptions or invoices, but tenants often challenged these as subjective […]
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As a housing provider or property manager in California, staying ahead of legislative changes is not just prudent—it’s essential for protecting your investments and avoiding costly disputes. With the full implementation of Assembly Bill 2801 (AB 2801) now in effect as of July 1, 2025, the rules governing security deposits have undergone significant enhancements aimed at promoting transparency and fairness. Signed into law by Governor Newsom on September 19, 2024, this bill amends Civil Code Section 1950.5 and introduces mandatory photographic documentation requirements that could fundamentally alter how you handle move-ins, move-outs, and deposit dispositions.
In this article, I’ll break down the key provisions of AB 2801, explain their practical implications, and offer steps to ensure compliance. Our firm has been advising clients like you on these evolving regulations daily, and we’re here to help you implement best practices that minimize risk while maintaining strong tenant relationships.
At its core, AB 2801 addresses one of the most common pain points in landlord-tenant interactions: disputes over security deposit deductions. We see this type of dispute come through our firm regularly. Prior to this law, landlords could itemize charges based on written descriptions or invoices, but tenants often challenged these as subjective or unsubstantiated—especially when claims involved “normal wear and tear” versus actual damage. The new requirements under AB 2801 mandate visual evidence, reducing ambiguity and empowering both parties with concrete proof of the condition of the unit at the time of move in and move out. By requiring “reasonably necessary” deductions only and prohibiting automatic fees (like routine carpet cleaning), the law encourages proactive documentation. Failure to comply in “bad faith” could bar you from withholding any portion of the deposit, potentially exposing you to penalties or lawsuits.
AB 2801 rolls out in two distinct phases, allowing time for adjustment but demanding immediate attention to avoid non-compliance. Here’s a clear timeline:
PhaseEffective DateKey RequirementsPhase 1: Move-Out DocumentationApril 1, 2025– Take photographs (or video) of the unit immediately after the tenant vacates and before any repairs or cleaning. – If deductions are planned, take additional photos after repairs/cleaning are completed. – Provide these images with the itemized statement within 21 days of move-out.Phase 2: Move-In DocumentationJuly 1, 2025 (for new tenancies)– Photograph the unit immediately before or at the start of the tenancy. – Retain these for reference; share if deductions are later claimed.
These rules apply to most residential rentals, with limited exemptions (e.g., certain evictions under Code of Civil Procedure sections). Importantly, photos must be date-stamped, high-resolution, and comprehensive—covering all areas where deductions might apply, like walls, floors, appliances, and fixtures.
AB 2801 also tightens the reins on what you can deduct and how you justify it:
Itemized Statements Must Include Evidence: Within 21 days of vacancy, your statement must now attach not just invoices or receipts, but also the required photos, a detailed description of the work (including hourly rates for in-house labor), and proof that charges are “reasonably necessary” to restore the unit—excluding ordinary wear and tear. If repairs aren’t complete within that window, a good-faith estimate suffices, but full documentation follows within 14 days.
No More Automatic Cleaning Fees: You cannot charge for professional cleaning (including carpets) unless it’s tied to specific, documented damage beyond normal wear. This eliminates boilerplate lease clauses for “end-of-lease cleaning,” which were ripe for challenges anyway.
Pre-Move-Out Inspections Encouraged: The law reinforces tenants’ right to request an initial inspection (with 48 hours’ notice), where you can flag issues and give them a chance to fix them. If conducted, unlisted damages can’t later be deducted—another reason to document meticulously.
Waivers and Small Claims: For deductions under $125, documentation can be waived (with tenant consent), but tenants can request it later. Electronic delivery (e.g., via email or secure link) is permitted if agreed upon, streamlining your process.
For small-scale landlords with a handful of units, these changes might feel burdensome—but they’re an opportunity to professionalize your operations. Property managers handling larger portfolios will appreciate the reduced litigation risk.
On the flip side, non-compliance could lead to:
Forfeited Deposits: Bad-faith failures mean you return the full amount, plus potential interest (currently 5.0% annually).
Tenant Lawsuits: Tenants can sue for up to twice the deposit amount in bad-faith cases.
Administrative Headaches: Manual photo tracking invites errors; consider digital tools for automation.
Below are some steps a landlord can take to help ensure compliance:
Update Your Processes Immediately: For any tenancy starting after July 1, 2025, snap those move-in photos during walkthroughs. Use a smartphone app with timestamping and geotagging for ease.
Revise Lease Agreements: Remove any automatic cleaning fees and add clauses outlining photo-sharing protocols. Include the mandatory notice about pre-move-out inspections.
Train Your Team: If you use property managers or maintenance staff, conduct a quick training session on photo requirements. Emphasizing “before” shots right after vacancy—delays could invalidate claims.
Invest in Tools: Cloud storage (e.g., Google Drive or dedicated property software like AppFolio) ensures secure, organized retention. Aim to keep photos for at least the statute of limitations on disputes (typically 4 years).
Educate Tenants: Proactively share move-in photos via email; it builds trust and preempts disputes.
AB 2801 may add a layer of documentation, but it’s ultimately a win for landlords who value evidence over arguments. By embracing these changes, you’ll not only help avoid penalties but also foster smoother tenancies and stronger defenses in rare conflicts. If AB 2801 raises questions about your specific properties or leases, our team is ready to assist.
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Avoiding Discrimination Claims When Screening Tenants with Section 8
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Fri, 18 Jul 2025 21:09:53 +0000
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As we have discussed in several of our firm articles, tenant protection laws have changed drastically in California over the years. Along with the changes brought on by the Tenant Protection Act of 2019, California also altered fair housing laws that went into effect beginning January 1, 2020. Specifically, Senate Bill 329 changed the definition of “source of income” under the Fair Employment and Housing Act (“FEHA”). Beginning January 1, 2020, Section 8 voucher holders are explicitly included within the definition of “source of income” and owners cannot discriminate against voucher holders. This change has brought on a slew of discrimination claims from prospective tenants, amongst other things. Here, we will review the common disputes we see at our firm related to the changes brought on by SB 329, tips to help avoid them, and what to look out for in the future concerning your rental. Background First, before we get into the specifics concerning these disputes, it’s important to provide a brief overview of the law surrounding these claims. The tenants’ claims arise both from the Unruh Civil Rights Act (“Unruh”) and FEHA. Both enacted in 1959, Unruh and FEHA provide protection to consumers from discrimination by businesses related […]
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As we have discussed in several of our firm articles, tenant protection laws have changed drastically in California over the years. Along with the changes brought on by the Tenant Protection Act of 2019, California also altered fair housing laws that went into effect beginning January 1, 2020. Specifically, Senate Bill 329 changed the definition of “source of income” under the Fair Employment and Housing Act (“FEHA”). Beginning January 1, 2020, Section 8 voucher holders are explicitly included within the definition of “source of income” and owners cannot discriminate against voucher holders. This change has brought on a slew of discrimination claims from prospective tenants, amongst other things. Here, we will review the common disputes we see at our firm related to the changes brought on by SB 329, tips to help avoid them, and what to look out for in the future concerning your rental.
Background
First, before we get into the specifics concerning these disputes, it’s important to provide a brief overview of the law surrounding these claims. The tenants’ claims arise both from the Unruh Civil Rights Act (“Unruh”) and FEHA. Both enacted in 1959, Unruh and FEHA provide protection to consumers from discrimination by businesses related to protected characteristics. These include race, religion, ancestry, familial status, source of income, etc. While both provide protection, FEHA’s protections are broader as it relates to entities involved in real estate including mortgage providers, Realtors, property managers, etc.
As it relates to rentals, owners or managers of residential property are prohibited from discriminating against renters based on the protected characteristics when they apply and/or while they’re renting their unit. This includes refusal to rent based on source of income, familial status, etc., as well as unnecessarily penalizing or providing alternate terms based on the tenants’ protected characteristic(s). This can include higher rent rates, more restrictive terms, and stricter background checks based on the tenants’ particular status.
Types of Claims
Prospective Tenant(s)
This situation involves a legitimate tenant that reaches out to the owner/manager to inquire about the vacancy. During communications, the tenant’s source of income inevitably comes up and the owner/manager is tasked with responding appropriately.
Common communications include the following: Tenant- “Hello is the unit available?” Owner/Manager- “Yes, would you like to come see it?” Tenant- “Yes, but do you accept Section 8” Owner/Manager- “No, sorry not at this time” (or something similar)
Based on the owner/manager’s response, the tenant would likely have a viable claim under both Unruh and FEHA for discrimination based on source of income.
“Testers”
Various tenant rights organizations have formed to perform ‘tests’ on listed rentals all over California.
The owner/manager engages in similar communications as with a legitimate tenant, but instead the person is a ‘tester’ hired by the organization. The owner/manager cannot tell the person contact them is a tester.
Once the owner/manager responds as above, the organization would likely have a claim under Unruh and FEHA.
Tester Standing Overview
Organizations claim standing under Cal. Gov. Code Section 12927(g) as they are an ‘aggrieved person’ under FEHA which includes any person OR organization “who claims to have been injured by a discriminatory housing practice.” (Havens Realty Corp. v. Coleman (1982) 455 US 363).
Alleged injuries in Tester claims would include the following:
Diversion of Resources: expended resources to conduct testing and investigate the housing provider’s practices, diverting resources from other program activities.
Frustration of Mission: as an organization dedicated to promoting fair housing, the organization claims housing provider’s discrimination frustrated its mission to ensure equal access to housing.
Interference with Programmatic Activities: the need to address this discrimination disrupted the organization’s regular activities.
Enforcement and Remedies
For FEHA claims, the tenant or tester organization would likely file a claim with the California Civil Rights Department (“CRD”). If a tenant makes a complaint to the CRD, CRD investigates. Owners/Managers typically must respond to the CRD investigation within 20 days. Unruh claims are typically filed in civil court as the CRD only hears FEHA claims.
Damages
Monetary damages: emotional distress, diverted resources, higher rent, etc.
Unruh Claims:
Unruh provides statutory damages: Nonviolent discrimination: $4k minimum per violation (Civil Code 52(a)). Multiple violations means multiple charges.
Increase in housing costs (rent differential), moving expenses, temp. housing costs, etc.
Attorney fees and costs are available under Civil Code.
FEHA Claims:
Economic losses and distress (like above)
CRD claims: Up to $10k for first violation; $25k for subsequent violations (paid to the State)
Attorney fees and costs like with the Unruh Act
No minimum statutory amounts like with Unruh– looks at ACTUAL damages
Tips to Help Avoid Getting Trapped
Education is crucial when managing rental properties in California. Make sure that anyone managing the property is informed of not only fair housing laws, but all tenant protection laws to help avoid costly lawsuits. Lack of intent is typically not relevant in these cases. The CRD offers free educational courses for this purpose. Further, have universal and systematic processes that you can fall back on when a claim arises. Showing that you do the same thing for every tenant will be helpful in managing damage/liability.
There is a common misconception we see with owners/managers in this situation. While owners/managers must accept Section 8 applicants, there is no obligation or requirement to select that tenant. However, any denial of that tenant cannot be arbitrary and would need to be based on characteristics not protected by Unruh and FEHA. In other words, if you have some other cause to reject them, you are permitted to do so. This can include a negative background check, previous eviction, etc.
We highly recommend speaking with counsel if a situation arises due to all the pitfalls associated with these claims. If in doubt, please do not hesitate to reach out for advice/information as the damage is extremely costly and we handle these issues on a daily basis.
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What’s New in 2025? New Laws Surrounding Landlord Tenant Law in California
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Mon, 27 Jan 2025 23:51:23 +0000
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If you have been involved with residential rental properties over the last couple of years in California, you undoubtedly are aware of the constant legal changes facing the industry. While we have largely moved on from moratoriums concerning eviction, there appears to be no slowing down in the State’s efforts to protect tenants. Below we will review the key changes to landlord-tenant laws this year, as well as an overview of what to expect moving forward. Security Deposits (AB 2801) Beginning April 1, 2025, landlords will be required to take photos of the rental unit immediately after receiving possession back from a tenant and before any repairs or cleaning take place and also immediately after repairs or cleaning take place. Some key factors include: Eviction Response Time (AB 2347) This law will now give tenants in an unlawful detainer action (eviction) 10 business days to respond to a complaint compared to the previous 5 business days given to tenants. Lawmakers justified this bill by arguing that 5 business days is hardly enough time to review the complaint and obtain counsel if necessary. This bill also shortens the time for hearings on specific motions including demurrers which have historically been used […]
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If you have been involved with residential rental properties over the last couple of years in California, you undoubtedly are aware of the constant legal changes facing the industry. While we have largely moved on from moratoriums concerning eviction, there appears to be no slowing down in the State’s efforts to protect tenants. Below we will review the key changes to landlord-tenant laws this year, as well as an overview of what to expect moving forward.
Security Deposits (AB 2801)
Beginning April 1, 2025, landlords will be required to take photos of the rental unit immediately after receiving possession back from a tenant and before any repairs or cleaning take place and also immediately after repairs or cleaning take place. Some key factors include:
Landlords will need to send photogs along with the standard itemized list of what the deposit was used for and a written explanation of the cost of repairs/cleaning
Landlords not permitted to charge for professional carpet cleaning or professional cleaning unless to return the unit to the same condition it was in prior to being rented out exclusive of ordinary wear and tear.
Eviction Response Time (AB 2347)
This law will now give tenants in an unlawful detainer action (eviction) 10 business days to respond to a complaint compared to the previous 5 business days given to tenants. Lawmakers justified this bill by arguing that 5 business days is hardly enough time to review the complaint and obtain counsel if necessary. This bill also shortens the time for hearings on specific motions including demurrers which have historically been used from time to time to delay the case for up to an additional 35 days. Now, responsive pleadings to those motions are due within 5 to 7 days depending on service and type of motion.
Balcony Inspections (AB 2579)
Back in 2015, 13 college students were standing on a balcony when it collapsed onto the street below, killing 6 and the rest severely injured. Previously, SB 721 required balconies and decks to be inspected for buildings with 3 or more multifamily units. The inspection must be done by a licensed architect or an individual certified as a building inspector or building official. AB 2579l provided a deadline of January 1, 2025, to complete the inspections. AB 2579 extends that deadline through January 1, 2026. Nonetheless, landlords that fall within the units covered under these bills should proactively complete the inspections to avoid issues and blowing the upcoming deadline.
Changes to Parking Fee (AB 2898)
This law requires landlords to ‘unbundle’ parking from the lease. If the landlord wants to charge for parking, which is becoming more and more common, they must now do so via a separate agreement from the lease. The reasoning by lawmakers was to prevent tenants from being evicted for nonpayment of the parking fee and/or violation of the parking conditions.
Changing of Locks (SB 1051)
This law would require landlords to pay for the changing of the unit’s locks when a tenant requests them to due so due to being a victim of domestic violence. Some key factors include:
Tenant must provide proof of the claim to landlord to initiate this requirement.
Landlord only has 24 hours to comply with the request. If not, the tenant can do it themselves and notify the landlord within 24 hours that the locks were changed as well as provide a new key to landlord.
The landlord then has 21 days to reimburse the tenant for the expense of changing the lock(s).
Landlords cannot remove tenants or otherwise discriminate against them based on the tenant’s exercise of their rights under this bill.
Fees and Security (SB 611)
This law would prevent landlords from charging tenants a fee for payment of rent/security deposit by check. It also prevents landlords from charging a fee for service of any notice including notices to pay or enter.
Mandatory Offer of Credit Reporting (AB 2747)
This law would require landlords with 15 or more rental units to offer positive rental payment reporting to at least 1 credit bureau on behalf of the tenant(s). Some key factors include:
The most a landlord can charge is the lesser of $10 or the actual cost of the service.
Landlords must still offer positive rental history reporting with all leases beginning on April 1, 2025, and must provide notice to tenants of leases existing as of January 1, 2025, of the same offer.
Tenant Screening (AB 2493)
This law permits landlords to charge an application fee only if they do one of the following two things:
Refund all applicants not selected, regardless of reason, if their application is treated like a ‘job interview’ approach. This refers to when landlords treat the application process like an interview and give the unit to the ‘best’ applicant. This approach can cause concerns as it relates to fair housing laws, so landlords should tread lightly or seek legal advice.
‘First Come First Serve’- process applications on first come, first qualified, first granted approach. The landlord must present their requirements along with the application form. Once a tenant is selected, any remaining applicants must either be refunded within 7 days or have their application transferred to another property that the landlord has available for rent. In this instance, the landlord can retain the application fee.
Understandably, these new laws can be intimidating for most landlords, especially with the penalties for lack of compliance. If you need assistance or have questions about the foregoing, please reach out as our firm handles these issues on a daily basis. We look forward to hearing from you!
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The Purpose and History of Title Companies in California
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Fri, 15 Nov 2024 22:29:51 +0000
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Here at Brewer Offord & Pedersen, our attorneys and staff assist customers every day with their real estate needs, whether that be assisting with a real estate transaction or helping to resolve a real estate dispute. However, recently when helping clients with completing a real estate transaction, I have been asked, “Why are we involving a title company?”, or “Why do we need to pay a title company for this transaction?”. In today’s blog, let’s answer those questions and others by discussing what a title company actually does, and why they are so essential to the real estate transactions that occur every day throughout California. What is a Title Company? To start, the answer to what a title company does is right in the name, it is a company that specializes in “title”. In real estate, “title” refers to the legal right to own, use, and transfer real property. Title represents the legal ownership of the property and takes into consideration ownership rights, liens and encumbrances, and the legal description of the property. Ownership rights are simply the collection of rights attached to a property, including the right to occupy, sell, lease, or transfer the property. Liens and encumbrances include […]
The post The Purpose and History of Title Companies in California appeared first on Bay Area Real Estate Law Blog.
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Here at Brewer Offord & Pedersen, our attorneys and staff assist customers every day with their real estate needs, whether that be assisting with a real estate transaction or helping to resolve a real estate dispute. However, recently when helping clients with completing a real estate transaction, I have been asked, “Why are we involving a title company?”, or “Why do we need to pay a title company for this transaction?”. In today’s blog, let’s answer those questions and others by discussing what a title company actually does, and why they are so essential to the real estate transactions that occur every day throughout California.
What is a Title Company?
To start, the answer to what a title company does is right in the name, it is a company that specializes in “title”. In real estate, “title” refers to the legal right to own, use, and transfer real property. Title represents the legal ownership of the property and takes into consideration ownership rights, liens and encumbrances, and the legal description of the property.
Ownership rights are simply the collection of rights attached to a property, including the right to occupy, sell, lease, or transfer the property. Liens and encumbrances include any claims or liabilities against the property, such as mortgages, easements, taxes, or judgments that may affect the owner’s rights. The official recorded description of the property’s boundaries and location is the legal description. Each of these factors is a matter of public record that title companies have become experts in searching for and uncovering prior to a transfer of real property ownership.
A title company is responsible for ensuring that a property’s title is clear of any liens, encumbrances, or other claims that could jeopardize ownership for a purchaser or lienholder, and title companies accomplish this by conducting a thorough search of public records to verify the legal ownership of the property and to identify any potential issues or claims against it. This process helps ensure that the seller has the right to transfer ownership (or take a lien against the property) and that there are no outstanding legal disputes connected to the property that could affect the subsequent owner and/or lienholder.
Additionally, after examining the title, a title company can provide “title insurance” to protect the buyer and lender from financial loss due to title defects or claims that were not discovered during the title search. Title insurance covers issues such as undisclosed liens, fraud, or errors in public records that may arise post-closing.
Having a “clear title” means that there are no unresolved claims, liens, or legal issues that could affect the new owner’s ability to use or sell the property. The title company’s role is to ensure that the title is clear and that both the buyer and the lender are protected throughout the transaction.
What is the History of Title Companies?
The origins of title companies in California can be traced back to the period following the Gold Rush of 1849. As people flocked to California and began acquiring land, the need for a reliable system to verify and secure property titles became apparent. Early land transactions were often complicated by conflicting claims and unclear ownership due to the complex history of land grants from Spanish and Mexican authorities.
California’s first legislature adopted a recording system for land titles in 1850, laying the groundwork for the title insurance industry. As the state developed, so did the complexity of property transactions, leading to the establishment of title companies to handle the growing demand for title searches and insurance.
Today, title companies are an integral part of the California real estate landscape, providing essential services that help property sellers and buyers have smooth real estate transactions. Because of their important role in California real estate, title companies in California have faced increased regulatory scrutiny and efforts to enhance consumer protection. State and federal regulations have been implemented to ensure transparency, prevent fraud, and protect consumers during real estate transactions.
Why Title Companies are Important
Title companies are essential for ensuring that the process of buying and selling property in California is smooth, secure, and legally sound. A clear title is fundamental to property ownership, and title companies are crucial in securing this clarity.
Their expertise helps prevent fraud by uncovering fraudulent claims or forged documents before they can affect ownership, and by providing a thorough title search and insurance, title companies protect your investment and ensure a seamless closing process.
By understanding the role of title companies, you can approach your real estate transaction with greater confidence. Their work safeguards your property rights and offers essential peace of mind, making the real estate journey more secure and reassuring. And in the rare occasion that a claim of title arises post-closing and you purchased title insurance, title will help defend against any claims on title, allowing buyers and lenders to have more peace of mind.
If you are in need of help with questions about title or any other real estate matter, the attorneys and staff of Brewer Offord & Pedersen LLP are always available to answer your questions and address your concerns from beginning to end for just about any real estate matter you may encounter. Also, having been in the community for over 30 years, we have built quality relationships with local title companies that can make your experience even smoother.
The post The Purpose and History of Title Companies in California appeared first on Bay Area Real Estate Law Blog.
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Risk and Reward In the California Housing Market: Non-Contingent Offers
uncategorized/risk-and-reward-in-the-california-housing-market-non-contingent-offers?utm_source=rss&utm_medium=rss&utm_campaign=risk-and-reward-in-the-california-housing-market-non-contingent-offers
Mon, 15 Jul 2024 00:31:00 +0000
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Standing Out in the California Market California’s scorching housing market can be a battleground for buyers, and when facing multiple offers, sellers often prioritize speed and certainty. This is where non-contingent offers come into play. But are they the solution you need, or a recipe for disaster? Here at Brewer Offord & Pedersen LLP, our team of dedicated staff and attorneys have seen it all, and whether you are considering making your first non-contingent offer or dealing with a non-contingent offer dispute, we are ready and waiting to provide our advice, experience, and expertise to help you navigate through these otherwise stressful situations. In this article, we will delve deeper into the world of non-contingent offers in the California real estate landscape, exploring the potential benefits and significant risks involved. In a traditional real estate transaction, contingencies act as a safety net for the buyer. These might include contingencies for securing financing approval, confirming property value with an appraisal, or completing a satisfactory home inspection, to name a few. While these contingencies may add additional time to the overall process, they provide buyers with a way to cancel the transaction without penalty (i.e., losing their earnest money deposit). Non-contingent offers […]
The post Risk and Reward In the California Housing Market: Non-Contingent Offers appeared first on Bay Area Real Estate Law Blog.
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Standing Out in the California Market
California’s scorching housing market can be a battleground for buyers, and when facing multiple offers, sellers often prioritize speed and certainty. This is where non-contingent offers come into play. But are they the solution you need, or a recipe for disaster? Here at Brewer Offord & Pedersen LLP, our team of dedicated staff and attorneys have seen it all, and whether you are considering making your first non-contingent offer or dealing with a non-contingent offer dispute, we are ready and waiting to provide our advice, experience, and expertise to help you navigate through these otherwise stressful situations. In this article, we will delve deeper into the world of non-contingent offers in the California real estate landscape, exploring the potential benefits and significant risks involved.
In a traditional real estate transaction, contingencies act as a safety net for the buyer. These might include contingencies for securing financing approval, confirming property value with an appraisal, or completing a satisfactory home inspection, to name a few. While these contingencies may add additional time to the overall process, they provide buyers with a way to cancel the transaction without penalty (i.e., losing their earnest money deposit). Non-contingent offers are a buyer’s way of telling the seller that they are willing to waive their otherwise legal right to cancel the transaction without penalty, with minimal exceptions. While non-contingent offers are not unheard of in other parts of the country, California’s hot housing market and competitive nature make them a more frequent consideration for buyers here in order to remain competitive.
Sellers have developed a soft spot for non-contingent offers, particularly in Silicon Valley and the Bay Area, and for good reason. They signal a serious and committed buyer, streamlining the closing process and reducing the risk of the deal falling apart at the last minute. For better or worse, this can be the deciding factor for sellers in a competitive market where multiple offers are on the table.
Buyer Beware: The Fate of Your Earnest Money Deposit in a Non-Contingent Offer
While the benefits for sellers are clear, non-contingent offers come with significant risks for buyers. Without a financing contingency, you could find yourself being required to fund the transaction even if your loan application does not go through. Skipping a home inspection can lead to structural issues and surprises with the home after the purchase is finalized that were otherwise unknown to both the buyer and seller and could have been discovered by a home inspector. Without an appraisal contingency, you might have to scramble to adjust your offer or convince the seller to lower the purchase price, potentially putting the buyer’s loan at risk, resulting in the inability to fund the transaction. In any such event, when you make a non-contingent offer, you are ultimately putting your ability to close escrow, as well as your earnest money deposit at risk.
Limited Exceptions to Non-Contingent Transactions
Not all hope is lost however – buyers do have some limited ways to back out without penalty, but they must be aware of the timeline and deadlines associated with the minimal exceptions. Should delivery of any of the disclosures or amended disclosures occur after execution of an offer or of a purchase agreement, the buyer has three to five days after delivery to terminate the offer or agreement by delivering a cancellation. This exception is complex but can prove useful even in non-contingent transactions. Civil Code Sect