Another Look at New Laws

Let’s take a deeper dive into state legislation coming on the books this year that will impact the real estate industry.

CHIC (Pearl)

Thanks to AB 968, which takes effect July 1, if you sell a property with one to four dwellings within 18 months of acquiring the title, you’ll need to disclose information about any repairs or renovations you’ve had done, in addition to contact info for your contractors and any permits you obtained. Most of this is already covered under existing disclosures in the Seller Property Questionnaire (SPQ), which may be updated to add specific disclosures for flippers.

GEEK (Kevin)

AB 1033 allows for ADUs (aka Accessory Dwelling Units or “Granny Flats”) to be transferred as stand-alone properties, separate from the main dwelling. The property must be classified as a condo, and each lienholder must consent to establishing the condominium. Making matters more complicated, if the property lies in an HOA, the HOA must also approve the condo classification. Fwiw, experts don’t expect this law to be used too often.