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California continues to pass more and more restrictions, requirements and complications relating to real property every year. It is important to be up to date and in compliance with each of these laws, as the consequences can be expensive and time-consuming.
This author commonly provides a quick article summarizing a few highlights in the area and otherwise simply provided a link to a more comprehensive chart of updated laws produced by organizations like the California Association of Realtors. This year, the California Association of Realtors has limited access to their real property updates to members only. As educating yourself becomes more difficult, buyers, sellers, landlords, tenants, members of home owners' associations, and anyone involved in real property (essentially everyone) should take pragmatic steps like making sure to use form documents produced by major associations (like the CAR), and to make sure they are using the most current version of those forms. If questions arise, consulting with an attorney or industry professional may be an option of first-resort, rather than only needed where matters are unclear or answers are not immediately available.
With respect to highlights for this year, there are a few interesting changes.
Seller Disclosures: "Thirdhand Smoke"
New disclosure requirements are applicable to home sellers. California is adopting tobacco smoke residue as a property condition that must be disclosed. (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB455 ). This is being referred to as 'thirdhand' smoke. In short, property sales now require a new disclosure about the dangers of thirdhand smoke, and a property seller must provide a written disclosure about the presence of thirdhand smoke if the seller has actual knowledge of the existence of residue from smoking or vaping tobacco or nicotine products on the property or of an occupant smoking or vaping tobacco or nicotine products on the property.
Rental Properties Appliance Requirements
Landlords in the state must also include working appliances in any property being rented. (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB628 ). Landlords must specifically provide working stoves and refrigerators for the property to be deemed habitable. Tenants can agree that they will supply their own refrigerator, but in order to do so, the lease must include an express waiver containing the following notice: "Under state law, the landlord is required to provide a refrigerator in good working order in your unit. By checking this box, you acknowledge that you have asked to bring your own refrigerator and that you are responsible for keeping that refrigerator in working order." The tenant is also permitted to withdraw that waiver on 30 days notice, at which time the landlord must provide a refrigerator.
Artificial Intelligence & Real Estate Advertising
AI is once again a topic of conversation and driving reactions. Specifically, California became concerned about photos in property listings that were edited by artificial intelligence and the potential to mislead buyers as to the true condition (or layout) of the property. In advertisements produced by realtors or salespersons, California now requires a "reasonably conspicuous" statement disclosing the existence of digitally altered photographs in any advertisement as well as a link to a copy of the unaltered image. (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB723 ).
Curiously, the law does not require a disclosure if the edits were made only to "lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property." It is not clear why it took the advent of AI hysteria for the California Legislature to add a statute that essentially discourages the use of grossly manipulated photographs in property advertisements.
When To Consult An Attorney
If you have an ongoing legal dispute, need individualized advice, or do not have time to read and apply every statute on the books, you should consult with an attorney. Madison Law handles disputes over the purchase and sale of land, including non-disclosures, landlord/tenant disputes in residential properties as well as commercial properties, and many other issues. Contact us today to set up a consultation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
