California Real Estate Laws – Here’s 4 That Every Investor Should Know
Since 2019, the California real estate market has had the highest level of home sales in the past 15 years. That being said, investors have to make sure they are not putting their money in the wrong places. Knowing California real estate laws is crucial for making the right moves and avoiding penalties. But what are these laws and which ones should you pay attention to in particular?
That is what we will be discussing today as we outline the 4 most important California real estate laws that every investor needs to know.
What are California Real Estate Laws?
Real estate law governs the buying, using, and selling of land in California. It dictates how people can buy land and what they can do with it.
Real estate is all about real property, as opposed to personal property. Fixtures like buildings and other structures are considered real property. Deeds, titles, taxes, and zoning are among some of the many aspects of real estate laws in California.
Most real estate laws you will come across are specific to the state you are in. A real estate lawyer can help you navigate different California real estate laws.
Let’s take a look at the four most important California real estate laws that all investors should know.
1. Assembly Bill 2343
If you are looking to invest in residential real estate like apartments, AB 2343 is important to know. Passed in 2019, this law sets new requirements for the 3-day notice given to tenants to either pay rent or become evicted.
Before, tenants were given 3 days to either pay rent or start packing their bags. AB 2343 changes this a bit by excluding judicial holidays, which includes Saturday and Sunday.
While this law is meant to help tenants from being unfairly evicted, investors should be aware of AB 2343 to properly time their eviction notices.
2. Assembly Bill 1919
AB 1919 was passed as a reaction to California’s abundant wildfires. It makes it illegal to price gouge certain goods and services during an emergency. While slight increases are acceptable, it is not okay for the increase to exceed 10%.
For investors and real estate owners, it means they cannot inflate prices more than 10% during that time. AB 1919 is not limited to just wildfires, as floods, riots, and disease all fit the same category.
This law is important to know since violation can result in a $10,000 fine or even jail. It is also good to know because of the current pandemic.
3. Assembly Bill 68, 670, 881
Accessory dwelling units are smaller, independent residential units that are located near a stand-alone home or piece of property. It is used as granny flats or accessory apartments.
AB 68, 670, and 881 laid out several laws and stipulations for property owners with ADUs. For example, ADU owners do not have to live on the property or charge impact fees.
These laws provide more leeway to ADU application approval. If you are planning on building a dwelling unit, it is important to review these codes.
4. Assembly Bill 1482
For those investing in apartments or other residential buildings, reading over AB 1482 is a must. As California’s main rent control law, it limits the property owner’s ability to increase rent.
It also enacts just-cause evictions that are subject to exceptions. Because the rent control caps are retroactive to March 2019, investors should look into the applicability of the law to their own property.
Leverage California Real Estate Laws Today
Navigating California real estate laws are key if you want to invest in the right property. Use this article to equip yourself with the right knowledge before investing.
Looking for a real estate lawyer to help navigate California real estate laws? Contact us today and we can get you started ASAP!