New Real Estate Laws For 2019

 In Real Estate

1. New Real Property Disclosure Requirements

Existing law provides that transferor must deliver to the respective transferee a real estate disclosure form and the transferee has certain time in which to terminate the deal. Assembly Bill 1289 now says that the specified time [within three days of delivery in person, or five days after delivery by mail, or within five days after delivery by email if the parties have agreed to conduct the transaction by email] runs from completion of the form’s three sections and delivery to the transferee. The real estate disclosure form now includes new definitions and limits disclosure of confidential information by dual agents to those to which the holder expressly consents in writing.

2. The Managing Agent of an HOA Now Cannot Transfer More Than $10,000 of Reserves and Operating Deposits Without Prior Written Board Approval

The board must now review at each monthly board meeting its check register, monthly general ledger, and delinquent assessment receivables report. Therefore, these items must be on each month’s agenda.  See, Civil Code §§ 5380, 5501, 5502, and 5806.

3. Retention of Payments from Subcontractors

Labor Code § 218.7 now prohibits a general contractor from withholding from its subs payments as disputed unless the general contractor specifies in the subcontract the specific documents and information which the subcontractor is to produce for him.

4. Disaster Relief / Fire Insurance

Insurance Code § 625.1 prohibits an insurance company from cancelling a fire policy based solely on the fact that the property is located within an area declared as to be in a state of emergency. In addition, the fire insurer cannot cancel the insured’s primary residential structure while it is being rebuilt, and must offer to renew the policy if the total loss was caused by a disaster.

5. Garage Door Openers / Battery Backup

Insurance Code § 19891 adds § 19892 to require any newly installed garage door opener or any replacement as to an existing one have a battery backup function designed to operate because of electrical outage. Any violation of this section could constitute a $1,000 civil penalty.

6. Unlawful Detainer Notice

Commencing September 1, 2019, CCP § 1161 and § 1167 excludes Saturdays and Sundays and other judicial holidays from the 3-day notice period within which to pay rent or cure breach of covenant, and from a 5-day period to respond to service of the UD complaint.

7. Personal Property Abandonment

Existing law allows a landlord to serve his notice of belief of abandonment to a tenant if the rent is unpaid for at least 14 consecutive days. Civil Code § 1946 § 1951.3 now add § 1951.35 to allow serving a notice of belief of abandonment to commercial tenant who is in default on its rent for as little as 3-days, which notice may be served by overnight courier service.

8. Disposition of Property Left on Commercial Premises

Existing law allows commercial landlord to dispose of personal property left at the premises upon termination of the tenancy if the total resale value of the property is the lesser of $750 or $1.00 per square foot of the premises occupied. Civil Code § 1993.04 and § 1993.67 now increase that amount to the greater of $2,500 or equal to one-month’s rent for the premises occupied.

9. Foreclosure / Homeowner’s Bill of Right

Homeowner’s bill of rights Civil Code § 2923.4, et seq. prohibits recording an NOD or Trustee’s Sale if the borrower has submitted a complete loan modification package. § 2924.11 strengthens borrower’s rights by:

  • Within five days after he/she has submitted a complete first loan modification application. The loan servicer must provide applicant with written acknowledgement of receipt.
  • If foreclosure sale has already been properly noticed, it must cease if the complete loan modification package has been submitted five business days before the noticed sale.
  • Upon denial of the first loan modification application, the lender may not further proceed to foreclose for 31 days after the borrower is notified of his denial and the reasons for the denial.

About the Author

  • Scott Souders
    Scott Souders Attorney & Author


Scott Souders is a real estate attorney who has practiced real estate law in excess of 42 years in Southern California. The Real Estate Law Update cites cases or statutes which are summarized and should not be relied upon without fully reading the cases or statute in the advance sheets and shepardizing the same and consulting with your own attorney.

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