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                               SAN DIEGO REAL ESTATE -  2005 real estate laws

  California real estate laws

Approved last year and taking effect as o f January I, 2005, several new housing laws will be changing the way tenants, landlords, home buyers and government agencies must do business.

There are several key issues, including:

Tenant Evictions: According to Ted Kimball, a San Diego attorney, the eviction process will now be more complicated for landlords in 2005. Evictions, also know as unlawful detainer complaints, must now include a copy of the notice that was the basis of the action, proof of service of that notice and a copy of the tenant lease. The only exemp­tion to the new requirement is if the complaint is based solely on non­payment of rent.

Electronic property records: The amount of red tape neces­sary to transfer property titles will now be reduced. New legislation will allow the electronic recording of documents to save time and money, rather than requiring the title or escrow company to deliver the documents and recording directly to the county recorder's office. According to Susan Trinsky or the San Diego Association of Realtors, "This will move the transaction along much quicker."

Sex offender identification: Lawmakers are increasing the amount of information available to neighborhoods about residents who are convicted sex offenders. By July 2005, the California Department of justice must use a website to inform the general pub­lic of sex offenders and by July 2006, the home address of the most severe violators will be available.

Rental payments: Landlords can no longer require that cash be the only form of payment of rent or security deposits, unless a tenant has previously written a check that bounced or had a "stop payment" order placed on it. If "cash only" requirements exist in a month-to­month rental agreement, the landlord must provide the tenant with a written notice stating that his or her check was dishonored and inform them they are required to pay cash for a specific period, not to exceed three months. The law does not prevent landlords from requiring money orders or cashier checks.

Rent increases: The Legislature lifted a sunset clause that would have ended the requirement to provide tenants with 60 day notice before raising rent by 10 percent within a 12 month period. The law does not apply to fixed-term leases.

NEW LAW PROMOTING CLEAN-UP AND DEVELOPMENT OF BROWNFIELDS

Builders say thousands of sites in California couldbe opened to home construction by a new law that promotes the cleanup and development of contaminated sites known as brownfields.

Assembly Bill 389 took effect on January I, 2005 and "Offers qualified purchasers of contaminated properties unprecedented immunities from future cleanup responsibility and from third-party liability," according to Stuart Block, an attorney who helped develop the legislation. The measure could help relieve high housing costs by opening more land to construction - freeing up to as much as 30 percent of 100,000 brownfield sites all over California.

The term brownfields applies to land known to be contam­inated and sites that are thought to be. They are now attrac­tive to California developers since open land for home con­struction has grown scarce. California redevelopment agencies, like San Diego's Centre City Development Corp., have broad authority to put together brownfield cleanup programs. The downtown ballpark project, built on former industrial land, is one example. The cost of this cleanup was nearly $20 million. When the ballpark site was selected for redevelopment, offi­cials new they would face environmental issues, such as under­ground storage tanks, leaking fuel lines and general misuse of the property over the years. However, the ballpark is consid­ered to be a model for successful redevelopment.

Before the passage of AB 389, brownfields were considered risky investments. Government agencies had the right to require additional cleanup measures after a construction proj­ect was completed. According to California law, "If you own the property, you own the problem." However, beginning on January 1, 2005, developers now have immunity for hazards that occur after the approval of cleanups. Attorney Block notes that not all brownfields are affected by the reform bill. Excluded is land listed or proposed for listing on the national Superfund priority lists; properties identified as hazardous release sites by the state; and properties impacted solely by a petroleum release from an underground storage tank and eligible for state funding.

According to Michael McLaughlin, teacher at San Diego State University, "The belief you have in the bill's ability to pro­tect the environment depends on how much trust you have in the building industry. If you assume a developer goes in with good intentions and does due diligence in terms of discovering what remediation is necessary, then it is a good bill."

 

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California real estate laws for 2005