Get the View on Some California Laws Coming Into Play for 2017 (or late 2016)

• Death of Occupant in a Property - there is already a law concerning this disclosure, but a new law effective September 25, 2016 clarifies it further by stating that the owner, his/her agent, or the buyer's agent,  is not required to disclose the death of an occupant of real property prior to three years before the offer to purchase or rent.  Also, no disclosure is required when an occupant was living with or died from AIDS-related complications.  
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• Effective November 27, 2016, FHA’s minimum owner-occupancy ratio for condo associations is reduced from the current 50 percent to 35 percent. FHA is ordered to streamline the entire recertification process for condo associations and make compliance “substantially less burdensome.”  Many condo owners and their Boards of Directors have not been aware that an FHA approval does not last indefinitely, and several years ago, required renewal every two years.  FHA has been criticized for certain requirements, because of many associations slipping out of certification seemingly unnoticed.  This cuts out a lot of selling opportunity for buyers and sellers of condos.  FHA is also required to make the recertification process "less burdensome" in order to attract more associations into the process.  Overall, this is good news.
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• Effective January 1, 2018, water submeters must be installed on all new multifamily units and mixed residential/commercial multifamily units, so a tenant may know how their water usage amount. This law does not apply to existing multifamily units.
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• Effective January 1, 2017, participation in a PACE (Property Assessed Clean Energy) lien program requires disclosures showing, among other things, that the property owner may not be able to sell or refinance without first paying off the PACE obligation.  There is also a 3-day right of rescission.  So know before you enroll in a PACE or HERO program which places a lien on your property.
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• However, FHA permits properties with a Property Assessed Clean Energy (PACE) obligation to be eligible for FHA-insured mortgage financing, whether for new purchases or refinancing, under certain circumstances. If the PACE lien is to remain, then property sales contract must include all terms and conditions of the PACE obligation by closing. Effective September 17, 2016.

For more information on other laws not mentioned here, or for additional information, please contact me and I will be happy to give to you.

New California Law on Low-Flow Toilets for 2017

As of January 1, 2017, water-conserving plumbing fixtures for single family homes built before 1994 will be required for California homes.

So as a Realtor, one thing I want to say right away is that it is not the agent's responsibility to disclose this at time of sale, but it is the seller/owner's responsibility to disclose if such fixtures have been installed.  And, it is not a point-of-sale requirement, but it is a requirement by virtue of owning a single family home as of January 1, 2017.

So what must be replaced?

1) A toilet manufactured to use more than 1.6 gallons per flush;
2) Any urinal manufactured to use more than one gallon of water per flush;
3) A showerhead manufactured to use more than one gallon of water per flush;
4) An interior faucet that emits more than 2.2 gallons of water per minute.

That State of California would like property owners to also know that putting brick in the toilet tank does not comply with the new law, even if it saves the appropriate amount of water. (Sorry!)

While the new law does not create a point-of-sale requirement, there may be local ordinances which do have their own laws which do create point-of-sale requirements, so it all depends on where you live, i.e., San Diego.

For properties which are not in compliance at the time of sale, the seller is required to disclose in writing to the buyer the new legal requirement, the presence of noncompliant plumbing fixtures on the property, and affirm to the buyer that it is the seller's (not the agent's) responsbility to disclose.  Of course, new updated transaction forms are planned by the California Association of Realtors to include this information.

At this point, the law addresses only single family homes, and there is no mention of condominiums or other unit-type properties.
For a more complete printout on this law, please feel free to contact me!