New California Real Estate Laws for 2024

AB 968: Single-Family Residential Property Disclosures Upon Transfer AB 968 requires that every contract for the sale of any single-family residential property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and uninfluenced by improper or illegal considerations. Effective July 1, 2024  AB 1280: Natural Hazard Disclosure Statement Expands the disclosures required by the Natural Hazard Disclosure Statement (NHD) to include High as well as Very High Fire Hazard Severity Zones (FHSZ) by explicitly highlighting three new subcategories of FHSZs. If the property is located in any of these zones, the defensible space and (for properties built before 2010) fire hardening disclosures would then be required. AB 1280 will allow an agent to view the NHD Statement, and easily make the determination that the property is or is not subject to defensible space and fire hardening disclosures. Effective January 1, 2024 AB 1033: ADUs May Be Sold Separately From the Primary Unit AB 1033 allows local agencies to adopt ordinances to allow the separate conveyance of ADUs and primary residences as condominiums. Any such ordinance must require that the process to establish the condominiums complies with both the Davis-Stirling Common Interest Development Act, which governs homeowners associations (HOAs), and the Subdivision Map Act, which governs the subdivision of property. It is also required that there is written and recorded evidence    that each lienholder consents to the establishment of the condominiums. If a property is within a homeowners association, that homeowners association must approve the creation of the condominium. Finally, AB 1033 requires the local agency to provide notice to applicants for ADUs of these requirements, such that they can make informed decisions in advance. Effective January 1, 2024 SB4: Affordable Housing SB4 removes barriers on churches, religious organizations and non-profit colleges to build affordable housing on their land. The bill also guarantees "by-right" approval  of new homes, as long as they are consistent with all objective building standards and comply with existing environmental protections. Effective January 1, 2024  AB 323: Developers Ability to Sell Deed-Restricted Units Intended for Owner-Occupancy To Purchasers That Would Rent AB 323 requires the developer and locality to ensure that a "for-sale" unit that qualified the developer for the award of a density bonus or a unit that is constructed pursuant to a local inclusionary zoning ordinance is initially sold to and occupied by low-income families. However, if a unit is intended for occupancy by a lower or moderate-income household pursuant to state density bonus law or a local inclusionary requirement, and the unit has not been purchased by an income-qualifying person or family within 180 days of the issuance of the certificate of occupancy, a developer may sell the unit to a qualified nonprofit housing corporation that will ensure owner occupancy. Effective January 1, 2024.