ReaLegal Archives

Friday, August 01, 2008
In this Issue:

FEDERAL HOUSING BILL NOW LAW, INCLUDING FIRPTA FIX This week, President Bush signed into law the Housing and Economic Recovery Act of 2008. This sweeping legislation primarily seeks to protect homeowners from foreclosure, stop declining home prices, and stabilize the mortgage industry. Major provisions of the new law affecting the real estate practice are as follows:

- SELLER NEED NOT REVEAL SSN TO BUYER UNDER FIRPTA: Effective immediately, sellers are no longer required to provide to their buyers the Seller's Affidavit of Nonforeign Status (C.A.R. Form AS), which includes the sellers'

social security numbers, under the Foreign Investment in Real Property Tax Act (FIRPTA). Instead, as another option, no federal withholding is required if the seller furnishes the Seller's Affidavit with his or her social security number to escrow or other qualified substitute as defined, who in turn, furnishes a statement to the buyer stating, under penalty of perjury, that it has the Seller's Affidavit in its possession. A "qualified substitute" is a person responsible for closing the transaction, such as an escrow company, title company or the buyer's agent, but not the seller's agent. The federal withholding law is now similar to California's Franchise Tax Board (FTB) policy which allows the escrow officer to remove the seller's tax ID number from th e buyer's copy of the California withholding tax statement, but not other copies.

- $300 BILLION IN FHA REFINANCING: Under the HOPE for Homeowners Program, 400,000 distressed homeowners can pay off their troubled mortgages and replace them with more affordable, FHA-insured loans. To qualify, a borrower's monthly payment on existing mortgage loans must be over 31% of his or her income as of March 1, 2008 (hence demonstrating the borrower's inability to afford the original loans). The original loans must have been originated before 2008, and secured by the borrower's principal residence (as well as only residence). Also to qualify, the borrower must satisfy FHA underwriting requirements for the new FHA-insured refinance loan. The FHA refinance will be a fixed rate loan up to $550,400 for at least 30 years, and will include charges for FHA insurance premiums. The maximum loan-to-value ratio of the FHA refinance is 90% of the appraised value. If the refinance proceeds are insufficient to pay off the existing liens, the refinance will not go through unles s the original lenders voluntarily agree to accept a short payoff as payment in full. Rules will be established to allow, among other things, equity sharing for the original junior lienholders. Upon obtaining the FHA refinance, the borrower must share with the FHA at least 50% of any equity realized through a subsequent sale or refinance. The FHA's share in equity will be based on a sliding scale of 100% of any equity realized within the first year of the FHA loan, 90% the second year, and so on, but not less than 50%. The HOPE for Homeowners Program shall be in effect from October 1, 2008 to September 30, 2011.

- $7,500 TAX CREDIT FOR FIRST-TIME HOMEBUYERS: With certain exceptions, a first-time homebuyer will receive a tax credit of 10% of the purchase price up to $7,500 maximum, for the tax year in which the buyer purchases a principal residence. The tax credit, however, must be repaid like an interest-free loan in equal installments over the next 15 years or in full if the homebuyer sells the property for a gain. A buyer qualifies as a "first-time" homebuyer as long as the buyer (and spouse if any) has not owned a principal residence in the U.S. for the last three years. The tax credit phases out for a taxpayer with a modified adjusted gross income over $75,000 (or $150,000 for joint returns). This tax credit is available for qualifying homes purchased from April 9, 2008 through June 30, 2009.

- FANNIE MAE, FREDDIE MAC, AND FHA REFORM: The new law permanently sets the conforming loan limit for FHA and government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac at 115% of an area's median home price, not to exceed $625,500. The new loan limits take effect after the current $729,750 loan limit expires on December 31, 2008. The new law also authorizes the Treasury Department to bail out Fannie Mae and Freddie Mac if necessary by increasing their lines or credit or purchasing their stock. A new governmental agency, the Federal Housing Finance Agency, will be created to oversee GSE operations. Other FHA reform includes an increase in the minimum down payment requirement from 3% to 3.5%, and effective October 1, 2008, the elimination of seller-funded down payment assistance programs.

Some of the other provisions of the new Housing Act are, without limitation,

$4 billion in assistance to stabilize neighborhoods hurt by the foreclosure crisis, $180 million for pre-foreclosure counseling, Home Equity Conversion Mortgage (HECM) reverse mortgage reform, assistance for veterans, and the creation of a nationwide loan originator licensing and registration system.

The appropriate governmental agencies will establish new regulations as needed to carry out and enforce the new Housing Act.

More info: http://www.car.org/

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Realegal. is published by the

CALIFORNIA ASSOCIATION OF REALTORS(R), a trade association

representing nearly 200,000 REALTORS(R) statewide.

Executive offices: 525 South Virgil Ave., Los Angeles CA 90020

Phone (213) 739-8200; fax (213) 480-7724

Legislative offices: 980 Ninth St., #1430, Sacramento CA 95814

Phone 916-492-5200; fax 916-444-2033

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To view C.A.R.'s Privacy Policy click on this link:

http://www.car.org/index.php?id=MTY1

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If you wish to update the e-mail address to which this newsletter is

sent, please do not reply to this e-mail.

E-mail address change requests must be directed to your local

Association, the Lodi Association of REALTORS. at

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Copyright (c) 2008 CALIFORNIA ASSOCIATION OF REALTORS(R)(C.A.R.)

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Friday, July 11, 2008
In this Issue:

FORECLOSURE RELIEF BILL BECOMES LAW

This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137

(Perata) is available at www.leginfo.ca.gov.

Highlights of the new law are as follows:

- Contact Between Lender and Borrower: Effective on or about September

8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaratio n in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.

- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who

acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.

- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant

or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

C.A.R. provides REALTORS(R) with many legal articles covering a wide range of topics of interest. Some of the new or newly revised legal articles available at http://qa.car.org are as follows:

- REO Disclosure Chart, available at

http://www.car.org/index.php?id=Mzg0Nzg.

- MLS Short Sale and REO Issues, available at

http://www.car.org/index.php?id=Mzg1MTA.

- Contingencies and Contingency Removal, available at

http://www.car.org/index.php?id=Mzg0MTY.

More info: http://www.car.org/

http://www.car.org/index.php?id=MTY1

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If you wish to update the e-mail address to which this newsletter is

sent, please do not reply to this e-mail.

E-mail address change requests must be directed to your local

Association, the Lodi Association of REALTORS. at lodiaor@softcom.net

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You are receiving the text version of Realegal.

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Copyright (c) 2008 CALIFORNIA ASSOCIATION OF REALTORS(R)(C.A.R.)

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Thursday January 3,2008

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS�

In this Issue:

COURT UPHOLDS BROKER'S RIGHT TO ARBITRATE UNDER C.A.R.'S PURCHASE AGREEMENT A buyer's broker who is sued in court by the buyer may require the dispute to be resolved through arbitration instead. That was the decision recently reached by a California court enforcing the standard-form language in C.A.R.'s Residential Purchase Agreement.

This court case involves a buyer who, several years after acquiring title, filed a lawsuit for the alleged failure to disclose that the guest house was not permitted. The buyer sued the seller, the listing broker, and the buyer's broker. The buyer's broker requested the court to require that the dispute be resolved through private arbitration, instead of a court trial.

The buyer and the listing broker opposed this request. The trial court denied the request for arbitration, and the buyer's broker appealed.

On appeal, the appellate court ruled that the buyer, but not the listing broker, may be required to arbitrate the dispute. In arriving at that decision, the appellate court relied on the standard-form language contained in C.A.R.'s California Residential Purchase Agreement (RPA-CA). Under paragraph 17, which the buyer and seller initialed, the parties opted to arbitrate any dispute, not otherwise settled through mediation. That paragraph, however, also requires the buyer and seller to arbitrate any dispute involving either or both brokers, provided the broker agrees to such arbitration before, or within a reasonable time after, a dispute is brought.

The appellate court reasoned that, "Under a plain reading of this clause, buyers and sellers agreed to let either or both cooperating brokers and listing brokers decide whether to arbitrate the claims against them."

Accordingly, the appellate court held that the buyer may be compelled to arbitrate, but not the listing broker who never consented. The court was not asked to consider the applicability of other arbitration provisions typically found in real estate transactions, such as that in the California Model MLS Rules.

Source: Nguyen v. Tran (2007) 68 Cal.Rptr.3d 906.

For more information about arbitration, C.A.R. offers members a legal article entitled Private Arbitration and Mediation at http://www.car.org/index.php?id=OTEx. C.A.R. also has an article geared towards buyers and sellers called Arbitration for the Consumer at http://www.car.org/index.php?id=OTMz which is available in six languages.

C.A.R.'s Legal Department provides REALTORS(R) with many legal articles covering a wide range of topics of interest. Here are some of our new or newly revised legal articles available through C.A.R. Online:

- Sales Disclosure Chart for REALTORS(R) (revised 1/1/08), available

at http://www.car.org/index.php?id=MzIxNjU.

- Lease/Rental Disclosure Chart for REALTORS(R) (revised 1/1/08),

available at http://www.car.org/index.php?id=MzI1NjI.

More info: http://www.car.org/

********

***********************************************************************

Realegal. is published by the

CALIFORNIA ASSOCIATION OF REALTORS(R), a trade association

representing nearly 200,000 REALTORS(R) statewide.

Executive offices: 525 South Virgil Ave., Los Angeles CA 90020

Phone (213) 739-8200; fax (213) 480-7724

Legislative offices: 980 Ninth St., #1430, Sacramento CA 95814

Phone 916-492-5200; fax 916-444-2033

* * * * * * * * * * * * * * * * * * * * * * * * *

To view C.A.R.'s Privacy Policy click on this link:

http://www.car.org/index.php?id=MTY1

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If you wish to update the e-mail address to which this newsletter is

sent, please do not reply to this e-mail.

E-mail address change requests must be directed to your local

Association, the Lodi Association of REALTORS. at lodiaor@softcom.net

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You are receiving the text version of Realegal.

To receive it in a html format, go to this link:

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Copyright (c) 2008 CALIFORNIA ASSOCIATION OF REALTORS(R)(C.A.R.)

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Thursday December 20,2007

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS�

In this Issue:

TAX BREAK FOR MORTGAGE DEBT FORGIVENESS

President Bush signed into law today a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.

This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).

For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer's principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.

The Mortgage Forgiveness Debt Relief Act of 2007 is available at http://www.govtrack.us/congress/bill.xpd?bill=h110-3648.

C.A.R.'s Legal Department provides REALTORS(R) with many legal articles covering a wide range of topics of interest. Some of new or newly revised legal articles available through C.A.R. Online are as follows:

- Statute of Limitations: Deadline on Time to Sue, available at

http://www.car.org/index.php?id=MzgwNjk.

- Errors and Omissions (E&O) Insurance for REALTORS(R), available at

http://www.car.org/index.php?id=MzcwNDI.

- Residential Listing Agreements Between Seller and Real Estate

Broker, available at http://www.car.org/index.php?id=MTMwNA.

More info: http://www.car.org/

http://www.car.org/index.php?id=MTY1

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If you wish to update the e-mail address to which this newsletter is

sent, please do not reply to this e-mail.

E-mail address change requests must be directed to your local

Association, the Lodi Association of REALTORS. at lodiaor@softcom.net

* * * * * * * * * * * * * * * * * * * * * * * * *

You are receiving the text version of Realegal.

To receive it in a html format, go to this link:

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To contact C.A.R. regarding Realegal., click on this link:

http://www.car.org/index.php?id=MTEx

Copyright (c) 2007 CALIFORNIA ASSOCIATION OF REALTORS(R)(C.A.R.)

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Tuesday November 6, 2007

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS�

In this Issue:

C.A.R. ROLLS OUT NEW STANDARD FORMS

The CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.) is releasing new standard forms this week. The November 2007 Forms Release is the second of two regularly scheduled releases published every year. Highlights of the November 2007 Forms Release are as follows:

- Short Sale Addendum (SSA): This new form may be used to make a sales transaction contingent upon the seller's lender accepting a loan payoff of less than the balance owed. This form also addresses other important issues pertaining to short sales, such as whether the seller can present other offers to the lender and whether the buyer may cancel during the short sale process. This form may be attached as an addendum to the California Residential Purchase Agreement (RPA-CA) or other C.A.R. purchase agreements.

- Notice of Transfer Fee (NTF): This new form may be used to comply with a new law, currently slated to take effect on January 1, 2008, that requires the disclosure of private transfer fees. This disclosure law will generally apply to, without limitation, private transfer fees for newer homes built by developers. Exceptions include transactions exempt from the Transfer Disclosure Statement (TDS) law, transfer fees imposed by governmental agencies, and transfer fees authorized by the Davis-Stirling Common Interest Development Act.

- California Residential Purchase Agreement and Joint Escrow Instructions (RPA CA): The existing RPA-CA has been revised to include a new sentence under "Other Terms and Conditions" which, if checked, requires the seller to complete the Seller Property Questionnaire. The Vacant Land Purchase Agreement and Joint Escrow Instructions (VLPA) form has been similarly revised.

- Request for Repairs (RR): This existing form has been revised to give both the buyer and seller the option of proposing a monetary credit from the seller in lieu of repairs to the property. Also under the revised RR, an agreement between the parties as to the items for repair will now include the buyer's agreement to release the seller and agents from any claims regarding those disclosed items.

- Seller Property Questionnaire (SPQ): The existing SPQ has been revised to include the questions set forth in the Supplemental Statutory and Contractual Disclosures (SSD) form. REALTORS(R) using the newly revised SPQ will no longer need to use the SSD. However, a seller who opts not to use the SPQ may still use the SSD to disclose certain statutory or contractual disclosures where applicable.

- Water Heater & Smoke Detector Statement of Compliance (WHSD): This existing form has been revised to state that the water heater strapping requirement is unlikely to apply to tankless water heaters.

For more information on the November 2007 Forms Release, including other revisions, go to http://www.car.org/index.php?id=Mzc3NzU. C.A.R.'s standard forms are available at local boards and associations, through C.A.R.'s online store at store.car.org, and through WINForms(R).

More info: http;//www.car.org/

********

***********************************************************************

Realegal. is published by the

CALIFORNIA ASSOCIATION OF REALTORS(R), a trade association

representing more than 200,000 REALTORS(R) statewide.

Executive offices: 525 South Virgil Ave., Los Angeles CA 90020

Phone (213) 739-8200; fax (213) 480-7724

C.A.R. legislative staff: 980 Ninth St., #1430, Sacramento CA 95814

Phone 916-492-5200; fax 916-444-2033

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To view C.A.R.'s Privacy Policy click on this link:

http://www.car.org/index.php?id=MTY1

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If you wish to update the email address to which this newsletter is

sent, please do not reply to this email.

Email address change requests must be directed to your local

Association, the Lodi Association of REALTORS. at lodiaor@softcom.net

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You are receiving the text version of Realegal.

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To contact C.A.R. regarding Realegal., click on this link:

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Copyright (c) 2007 CALIFORNIA ASSOCIATION OF REALTORS(R)(C.A.R.)

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Friday October 19,2007

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS�

In this Issue:

NEW LAWS FOR 2008 AFFECTING REALTORS(R)

With the conclusion of the first half of the 2007-08 legislative session, new laws have been enacted that may affect California's REALTORS(R). The following is a summary of significant new laws that may impact real estate practitioners. To view the full text of a legislative bill, go to www.leginfo.ca.gov.

New Disclosure for Private Transfer Fees: Effective January 1, 2008, a seller who must provide a Transfer Disclosure Statement must also provide, at the same time, a disclosure statement of private transfer fees if applicable. A transfer fee is defined as any fee that must be paid upon transfer of real property as imposed by deed, CC&Rs, or other documents, with certain exceptions (such as, but not limited to, transfer fees imposed by probate, trust, court order, or a governmental agency). The new disclosure statement must contain, among other things, a notice that payment is required, the amount of the fee, and the entity to which payment must be made. To comply with this new requirement, C.A.R. will release a new standard-form Notice of Transfer Fees (NTF) in November 2007. (Source: Assembly Bill 980.)

Recording Private Transfer Fees: Also effective January 1, 2008, any person or entity imposing a private transfer fee must, as a condition of payment of the fee, record the instrument creating the transfer fee and a separate notice of "Payment of Transfer Fee Required." These two documents must be recorded concurrently in the county recorder's office for which a property is located. The notice of "Payment of Transfer Fee Required" must include the following information:

- Names of the current property owners;

- Assessor's parcel number and legal description;

- Amount of the fee (or percentage of sales price);

- Actual dollar-cost examples of the fee for residential property priced at $250,000, $500,000, and $750,000;

- When the fee expires if applicable;

- Purpose of the funds;

- Name of entity to be paid and that entity's contact information for sending the funds; and

- Signature of that entity's authorized representative.

The title of the notice of "Payment of Transfer Fee Required" must be in at least 14-point bold type. For transfer fees imposed before January 1, 2008, the receiver of the fee must, as a condition of payment of any fee after December 31, 2008, record a notice of "Payment of Transfer Fee Required" by December 31, 2008 (or record a substantial equivalent as specified). (Source: Assembly Bill 980.)

Real Estate Appraisers: Starting October 5, 2007, a licensed appraiser's compensation cannot be dependent upon, or affected by, the value conclusion generated by an appraisal for a real property purchase, sale, transfer, financing, or development. Also starting October 5, 2007, anyone with an interest in a real estate transaction is prohibited from improperly influencing, or attempting to improperly influence, through coercion, extortion, or bribery, the appraisal process for a mortgage loan. An interested party may, however, ask the appraiser to do any of the following:

- Consider additional, appropriate property information;

- Provide substantiation or explanation for the appraiser's value conclusion; or

- Correct errors in the appraisal report.

(Source: Senate Bill 223.)

Escrow Cancellation and Postponement Fees: Beginning January 1, 2008, an escrow company licensed by the California Department of Corporations (DOC) may charge a fee for cancellation or postponement resulting from the acts or omissions of the parties to an escrow transaction. The fee must be in not less than 8-point bold type on the front page of the escrow instructions signed by the principals. A postponement fee can only be charged for a postponement of at least two months after the most recent closing date in the agreed-upon written instructions. This legislative bill also requires an escrow company licensed by the DOC, and any of its directors, stockholders, trustees, officers, agents, or employees, to comply with the federal Real Estate Settlement Procedures Act (RESPA). (Source: Assembly Bill 804.)

Mortgage Lenders and Brokers Regulated: Commencing January 1, 2008, anyone who makes eight or more loans to the public in a calendar year using that person's own funds must be licensed as a real estate broker. This law applies to loans secured by one-to-four residential units, including condominiums, whether such loans are held or resold. Excluded from the law, however, are loans negotiated through a real estate broker who meets the criteria of Article 7 of the real estate law (Cal. Bus. & Prof. Code section 10232). This legislative bill also requires the Department of Real Estate (DRE) and other agencies to take steps to ensure that licensed mortgage lenders and brokers are aware of certain guidelines on subprime and other nontraditional mortgage product risks. (Source: Senate Bill 385.)

Anti-Discrimination of Tenants' Immigration Status: Beginning January 1, 2008, a landlord or landlord's agent cannot inquire into the immigration or citizenship status of an existing or prospective tenant or occupant. A landlord may, however, request information or documentation necessary to determine or verify the financial qualifications of a prospective tenant, or to identify a prospective tenant or occupant. This law also prohibits any city or county from requiring a landlord or landlord's agent of residential rental property to inquire into, or take any action based upon, the immigration or citizenship status of an existing or prospective tenant or occupant. (Source: Assembly Bill 976.)

Notice of Agenda for HOA Meeting: Under existing provisions of the Common Interest Development Open Meeting Act, a homeowner's association (HOA) must not only allow members to attend HOA meetings as specified, but also provide members with at least 4 days notice of the time and place of a meeting. Effective January 1, 2008, such notice must contain the agenda for the upcoming meeting. At the meeting, the board of directors cannot discuss or take action on any item not on the agenda. Exceptions apply as specified for brief statements, exigent circumstances, and continuances from last month's meeting. This law does not prohibit a resident, who is not a member of the board, from speaking at a meeting about issues not on the agenda. (Source: Senate Bill 528.)

Certified Common Interest Development Managers: Existing law regulating certified common interest development managers was originally scheduled to expire on January 1, 2008, but has now been extended until January 1, 2012. Under this law, holding oneself out as a "certified common interest development manager" (or using a similar term) is an unfair business practice unless that person has satisfied certain requirements. These requirements include 30-hours of coursework in common interest development management, and either passing an aptitude exam or being certified by a professional association for common interest development managers. This law also requires common interest development managers to disclose certain information to the board of directors on an annual basis, such as, but not limited to, whether the manager is certified, is bonded for the current year's operating and reserve funds, and has a real estate license. (Source: Assembly Bill 691.)

Manufactured Homes and Mobilehomes Distinguished: This new law provides a bright-line distinction between "manufactured homes" and "mobilehomes" to clarify the confusion surrounding these two terms. Starting January 1, 2008, both a manufactured home and mobilehome are generally defined as transportable structures of certain specifications, with or without foundations, but a manufactured home is constructed on or after June 15, 1976, whereas a mobilehome is constructed before June 15, 1976. (Source: Senate Bill 538.)

Notice of Removal of Mobilehome from Park Upon Sale: Under existing law, when certain old or rundown mobilehomes are sold, the management of the mobilehome park may require the removal of such mobilehomes to upgrade the quality of the park. Beginning January 1, 2008, removal of such mobilehomes is prohibited, unless the park management provides the homeowner with a notice specifying the condition permitting removal. Source: Assembly Bill 446.)

License Number on Business Cards: Not going into effect this year is Senate Bill 226 which would have, among other things, authorized the DRE to require that real estate agents display their license numbers on business cards and other consumer first-contact materials. Governor Arnold Schwarzenegger stated he supported this aspect of Senate Bill 226, but vetoed the legislative bill on other grounds.

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