New laws for 2011

The following was excerpted from CAR's website. Color coding and bold added
by me.

2011 New Federal and State Statutes Including Statutes Passed During 2010

SB 183
(eff. Jan. 1, 2011)
Carbon monoxide detectors; smoke detectors and water-heater bracing

This law revises the TDS and MHTDS to include a disclosure regarding
compliance with the smoke detectors and water-heater bracing laws
(eliminating the need for separate disclosure forms). The TDS and MHTDS
will also add a disclosure regarding carbon monoxide detection devices.

This law enacts the Carbon Monoxide Poisoning Prevention Act of 2010. The
law requires a carbon monoxide device (battery or hard-wired) to be
installed in a "dwelling unit intended for human occupancy." A violation is
punishable by a maximum fine of $200 for each offense. Owners of
residential rental property must also comply with this law. Tenants are
responsible to notify the owner of an inoperable or deficient carbon
monoxide device.

Installation Time Period:

* On or before July 1, 2011 for existing single-family dwelling units
* On or before Jan. 1, 2013 for all other existing dwelling units

Amends Sections 1102.6 and 1102.6d of the CA Civil Code and adds Sections
13260, 13261, 13262, 13263, 17926, 17926.1, and 17926.2 to the CA Health and
Safety Code.


SB 454
(eff. Jan. 1, 2011)
Extension of government-subsidized rental housing notice and procedural

This law extends existing law (which would have ended January 1, 2011) that
imposes notice and procedural requirements on an owner of
government-subsidized rental housing regarding the owner's decision not to
extend or renew participation in the specified government-subsidized housing

Amends Sections 65863.10, 65863.11, and 65863.13 of the CA Government Code.

Landlord-Tenant SB 782
(eff. Jan. 1, 2011)
Tenant protection for domestic violence victims

Starting Jan. 1, 2011, a residential landlord cannot terminate or fail to
renew a tenancy based on domestic violence against the tenant or tenant's
household members as specified. This law applies if the person restrained
from contact with the tenant by court order or named in a police report is
not also a tenant of the same dwelling unit. If the protected tenant
subsequently allows the person restrained to visit the property, or the
landlord reasonably believes the person restrained poses a physical threat
to others or to quiet possession by other tenants, the landlord may serve a
three-day notice to correct or quit. To further ensure safe housing for
domestic violence victims, this law also requires that, for leases entered
into after January 1, 2011, a landlord changes the exterior locks of a
protected tenant's dwelling unit within 24 hours after the tenant provides a
written request and supporting court or police documentation as specified.

Adds Sections 1941.5 and 1941.6 to the Civil Code, and adds Section 1161.3
to the Code of Civil Procedure.


AB 1263
(eff. Jan. 1, 2011)
Unlawful detainer of commercial tenant

This law changes the method of serving an unlawful detainer notice on a
commercial tenant. The law provides that service on a commercial tenant can
be made by any of the following methods:

(1) delivering a copy to the tenant personally,

(2) leaving a copy with some person of suitable age and discretion at the
property and sending a copy through the mail, as specified, or

(3) by affixing a copy in a conspicuous place on the property and sending a
copy through the mail, as specified.

Amends Section 1162 of the CA Code of Civil Procedure.


SB 1149
(eff. Jan., 1, 2011)
Prohibits general release of court records in foreclosure-related eviction
unless landlord prevails; New cover page with Notice to Quit to tenants
after a foreclosure

This law authorizes a court clerk to allow access to court records of
eviction proceedings involving residential property that has been sold in
foreclosure if 60 days have elapsed since the complaint was filed and
judgment was entered against all the defendants (tenants).

This law also requires, until Jan. 1, 2013, that any Notice to Quit served
to a tenant of residential property within one year after a foreclosure sale
include a separate cover sheet containing an additional notice to tenants
(statutory language in Section 1161c(b) and (c)).

Amends Sections 1161.2 and 1166 and adds Section 1161c of the CA Code of
Civil Procedure.


AB 1800
(eff. Jan. 1, 2011)
Unlawful renting of residential dwelling

Existing law makes it a misdemeanor for a person to claim ownership or take
possession of someone else's residential property for the purpose of renting
or leasing it to another without the consent of the owner. This law
increases the penalties for this offense to a maximum of $2,500 or
imprisonment in a county jail not exceeding one year or by both.

Amends Section 602.9 of the CA Penal Code.


H.R. 5297 <>
(Section 2101(h)) (Small Business Jobs and Credit Act of 2010)
(eff. Jan. 1, 2011)
Landlords to report payments of $600 or more on IRS Form 1099

H.R. 5297 includes an expansion of the 1099 reporting related to a trade or
business. Under existing law only those real estate professionals engaged in
property management-type businesses have been required to file Form 1099.
This new federal law extends the Form 1099 requirement to any person who
receives rental income. This requirement would apply to any landlord
(including a small investor), rather than only those who are in the business
of managing property.

Starting Jan. 1, 2011, any person who receives rental income must provide a
Form 1099 for all payments of $600 or more made to service providers such as
plumbers, carpenters, yard services and repair people. The purchase of goods
is not included within the reporting requirement. The Form 1099 is provided
to the IRS and to the service provider. The new requirement applies to both
residential and commercial property.

Power of Attorney

SB 1038
(eff. Jan. 1, 2011)
Attorney-in-fact now may be liable for losses to principal's property

The Power of Attorney Law creates various duties and requires an
attorney-in-fact to observe the standard of care that would be observed by a
prudent person dealing with property of another, or if an attorney-in-fact
has special skills he or she must observe the standard of care that would be
observed by others with similar skills.

However, this law deletes the existing provision that an attorney-in-fact is
not liable for a loss to the principal's property if he or she is not
compensated, unless the loss results from his or her bad faith,intentional
wrongdoing, or gross negligence.

Under this new law, if the attorney-in-fact breaches a duty pursuant to the
Power of Attorney Law he or she is chargeable with interest for any loss or
depreciation in value of the property, any profit made through the breach,
or any profit that would have accrued to the principal if the loss or profit
is a result of the breach.

Amends Section 4231 and adds Section 4231.5 to the CA Probate Code.

Property Tax

Prop. 13
(eff. June 8, 2010)
New construction exclusion for seismic retrofitting

Proposition 13 prohibits tax assessors from re-evaluating new construction
for property tax purposes when the point of the new construction is to
seismically retrofit an existing building.

Amends Section 2 of Article XIII A of the California Constitution.

Short Sales

SB 931
(eff. Jan. 1, 2011)
Discharge of balance of loan indebtedness after a short sale for residential
1-4 real property by holder of a first deed of trust

This new law prohibits a lender holding a first deed of trust (purchase
money or refinance) for a dwelling of 1-4 units to demand a deficiency
judgment (unpaid balance due on the loan) from the trustor or mortgagor
(owner) who sells the dwelling for less than the remaining amount of the
indebtedness due at the time of the short sale to which the lender has
consented in writing.

However, if the owner commits either fraud with respect to the short sale,
or waste with respect to the secured real property, then the lender may seek
damages and use existing rights and remedies against the owner or any third
party for fraud or waste.

Note that this law doesn't apply if the trustor or mortgagor is a
corporation or political subdivision of the state.

Adds Section 580e to the Code of Civil Procedure.




Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE
38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536


CA DRE#: 01173766