| 2006
- NEW LAWS AFFECTING REAL ESTATE
Megan's Law Disclosure: The Data
Base Disclosure has been revised to reference the new
Megan's Law Website which provides online information
about registered sex offenders. Effective April 1,
2006, the revised disclosure language will be mandatory
for residential sellers up to four units, as well as
for residential landlords.
Supplemental Property Taxes Disclosure: Although
change of ownership triggers reassessment of property
taxes, buyers may not realize that they may have to
pay supplemental tax bills. Hence, starting January
1, 2006, sellers of most residential properties up
to four units, or their agents, must disclose to prospective
buyers that they may owe supplemental taxes.
Methamphetamine-Contaminated Properties: Starting
January 1, 2006, a property owner must disclose in
writing to a prospective buyer or tenant if local health
officials have issued an order prohibiting the use
or occupancy of a property contaminated by meth lab
activity. The owner must also give a copy of the pending
order to the buyer or tenant to acknowledge receipt
in writing. Failure to comply with these requirements
may subject an owner to, among other things, a civil
penalty up to $5,000. Aside from disclosure requirements,
this new law also sets forth procedures for local authorities
to deal with meth-contaminated properties, including
the filing of a lien against a property until the owner
cleans up the contamination or pays for the cleanup
costs.
Property Taxes for Domestic Partners: Beginning
the lien date for the 2006-07 fiscal year, any transfer
between registered domestic partners will not trigger
property tax reassessment. As a result, registered
domestic partners will be treated the same as spouses
under California property tax laws.
Notice to Terminate Tenancy: Starting
January 1, 2006, landlords may give a 30-day notice
to terminate their month-to-month tenants (unless rent
control or subsidized housing rules apply). Existing
law requiring a 60-day notice of termination expires
on December 31, 2005.
Small Claims Court: Starting January
1, 2006, the maximum monetary claim an individual person
may bring into small claims court has been increased
from $5,000 to $7,500. Legal entities other than natural
persons (e.g., corporations, partnerships, or governmental
entities) do not qualify for this jurisdictional increase.
Copyright© 2005 CALIFORNIA ASSOCIATION
OF REALTORS® (C.A.R.). Reprint and use of this
information is provided by courtesy of the C.A.R. Legal
Department.
Contact
us for more info on California 2006 Laws Affecting
Real Estate.
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