September 2008 

GIBSON LAW – LEGISLATIVE UPDATES

 

THE LATEST CALIFORNIA LAWS ON REAL ESTATE

 

CRIMINAL BACKGROUND CHECK FOR

ESCROW AGENTS EXPANDED AND SPEEDED UP

 

A.B. 2323, enacted August 4, 2008

Amends Financial Code Section 17209 and related section

            Existing law requires a criminal background check on licensed escrow agents.  This law expands the scope of the background check to include summary criminal history from the Federal Bureau of Investigation and makes possible transmission of photographs and fingerprints electronically.  (Current law requires transmission of this information by certified mail.)

           

 

FINES INCREASED FOR ACTING AS REAL ESTATE BROKER

OR SALESPERSON WITHOUT A LICENSE

 

S.B. 1448, enacted July 21, 2008

Amended Business & Professions Code Section 10139 to increase fines for acting as a real estate broker or salesperson, without a license, from $10,000 to $20,000 for an individual and from $50,000 to $60,000 for a corporation.

 

LANDLORD MAY DISPOSE OF UP TO $750 OF

PERSONAL PROPERTY, WITHOUT AUCTION,

AT END OF COMMERICAL TENANCY

 

A.B. 2021, enacted July 21, 2008

Amends Civil Code Section 1980.5.

 

            Under current law, if personal property is left upon premises after commercial tenancy ends, if the legal procedures are followed up to the landlord may simply retain $300 worth of personal property.  This law increases that amount to $750.

 

VOTERS APPROVE PROPOSITION 99,

PROTECTING HOMEOWNERS FROM EMINENT DOMAIN ABUSE

 

         On June 3, 2008, the voters approved Proposition 99, which protects homeowners from having their property taken by eminent domain for the purpose of transferring the property to another private owner.  The Proposition amended Article 1, Section 19 of the California Constitution.   Proposition 99 was a response to a United States Supreme Court decision, Kelo v. City of New London, which upheld the use by a city of its eminent domain power to condemn a private residence and to sell the land to a private developer, for the purpose of increasing municipal tax revenues.  

            Proposition 99 prohibits any government agency in California from using its eminent domain power to acquire title to any owner-occupied residence for the purpose of passing title to another private entity.  This prohibition has two major exceptions.   First, a home may be acquired by eminent domain for purposes of protecting public health, combating crime, responding to an emergency or remediating environmental problems.  Second, a home may be acquired for a public work or improvement.