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Legislative Update
Governor Newsom had until last Friday, Sept. 30, to sign or veto bills on his desk. Of the 1,166 bills sent to the Governor in the 2022 Session, he signed 997 bills and vetoed 169 bills. This year, Governor Newsom signed a number of C.A.R. priority bills including two sponsored bills, AB 2170 (Grayson) and AB 2245 (Ramos), and a priority-support bill, AB 2960 (Committee on Judiciary) into which language for what was going to be a sponsored C.A.R. bill was placed due to the non-controversial nature of the change in the law.
AB 2170 prohibits the bulk sale of REO parcels by large mortgage servicers while AB 2245 extends the protections of the Uniform Partition of Heirs Property Act to any partition action of real property held in tenancy in common where there is no agreement in a record binding all the cotenants. AB 2960 mandates that disclosure requirements in effect on the date that all parties enter into a real estate contract or agreement subject to those requirements are the requirements that apply to that contract or agreement.
For more information on these bills, please click here.
AB 2170 (Grayson) Codification of GSE “First Look” Program – This bill will prohibit bulk sales of REO parcels by a mortgage servicer that forecloses on 175 or more residential properties annually. This bill will also: a) Enact into California law the existing federal guidelines for the federal “First Look” program and provide owner-occupants and public entities with an opportunity to put offers in on and potentially purchase REO properties for 30 days; b) Require mortgage servicers to provide a written acknowledgment to the potential owner-occupant purchaser and public entities of all offers during that 30 day period; and c) Require mortgage servicers to respond to “First Look” offers on REO parcels prior to accepting offers from investor purchasers. The bill enjoyed bipartisan support, had no opposition, and received no “No” votes.
Position: Sponsored
Status: Signed into law September 30, 2022 (Chapter 865, Statutes of 2022)
AB 2245 (Ramos) The Uniform Partition of Heirs Property Act Extension Bill – Under the Uniform Partition of Heirs Property Act, AB 633 (Calderon) which C.A.R. sponsored and was signed into law last year, safeguards were put into place to protect heir’s property owners from losing generational wealth when there was no consensus on what to do with a property among the owners of a co-tenancy. AB 2245 extends the protections of the Uniform Partition of Heirs Property Act to any partition action concerning real property held in tenancy in common where there is no agreement in a record binding all the cotenants which governs the partition of the property. Included in those protections is a provision in the law for sales of property in partition actions by real estate licensees, when possible, as opposed to court sales to obtain the best price for the property.
Position: Sponsored
Status: Signed into law July 1, 2022 (Chapter 82, Statutes of 2022)
AB 2960 (Committee on Judiciary) Judiciary Omnibus Bill – C.A.R. had direction to sponsor a bill to state that disclosure requirements in effect on the date that all parties enter into a real estate contract or agreement subject to those requirements are the requirements that apply to that contract or agreement. The bill was also to provide that any amendment to those disclosure requirements that becomes effective after the date that the parties enter into a contract or agreement does not alter the disclosure requirements that apply to that contract or agreement. There had been uncertainty about what law applied in scenarios where a new disclosure requirement came into place mid-contract. Due to the lack of controversy on the bill, the C.A.R. sponsored bill became a part of the Judiciary Omnibus bill, which contains non-controversial measures.
Position: Support
Status: Signed into law September 18, 2022 (Chapter 420, Statutes of 2022)
