Real estate is a lucrative business. Whether you are making a long-term investment, selling property, or flipping houses, there are plenty of opportunities for intuitive investors. There are countless opportunities for investors and just as many real estate laws to accompany them. Real estate law is a complex area of the legal system that dictates codes, laws, and requirements that properties need to follow, buying/selling, inheritance, taxes, and a lot more. It can be hard to keep track of all these laws, but they can also change every year. If you own real estate, keep reading to learn some of this year’s changes to California’s real estate laws.
New Real Estate and Appraiser Education Requirements
One of the new California real estate law changes is SB 263. This bill requires real estate licensees and license applicants to complete implicit bias training. This training must be done during licensing courses and renewal courses.
Licensees and applicants will learn how implicit, explicit, and systemic biases impact clients. They will also learn the history and social impact of these biases. Licensees will also learn to identify and address their own biases.
AB 948 dictates that real estate appraisers will have to do cultural competency and anti-bias training. The law also makes it illegal for appraisers to discriminate in their appraisals. They must also make their services available to people of protected classes.
The Bureau of Real Estate Appraisers will also need to include a check box on their complaint form, which asks if complainants believe their appraisal is below market value. Complainants can also indicate their demographic on the form. The BREA will have to study this information and submit a report to the state legislature before July 1, 2024.
Real Estate Law SB 9
SB 9 is one of the more contentious real estate law changes. The bill streamlines the process for owners of single-family lots to divide that lot into two parcels. Owners will be able to build two units per parcel, which means a single lot can hold up to four homes under certain conditions.
The bill intends to increase housing and help solve the housing crisis. This bill, along with SB 8 and SB 10, is part of an initiative to increase housing.
Inequalities in Housing
The state is cracking down on other areas of inequality in the real estate market. AB 491 requires mixed-income buildings constructed this year and on to maintain common areas and entrances accessible to all types of units. All units must have the same access to these areas; low-income residents cannot be isolated to one floor or wing of the building.
AB 1466 requires a title insurance company to identify unlawful restrictive agreements when there is a transfer of property. Title insurance companies must record a modification document with a county recorder. This bill goes into effect on July 1st of this year.
Before July 1st, only the property owner can record a modification.
Real Estate, Business, and Construction Legal Advice
Real estate law developments can make handling property tricky. Before you do anything with a property, it is best to consult an attorney to make sure you are doing everything by the book.
At the Law Office of Lisa Wills, a Professional Law Corporation, we can help you with real estate law, business law, and construction law. If you want to start, buy or sell a business, buy or sell a property or need help with the eviction process, contact us so we can help you during the process.