Questions 4 and 8 have been modified to reflect the Internal Revenue Service and Franchise Tax Board clarifications of the tax treatment of debt forgiveness in a short sale of 1-to-4 residential property.
Question 32 notes that the TDS now contains a check box for water-conserving plumbing fixtures
Question 33 explains that the TDS (on page 2, Section C, question 16) now asks the seller to disclose certain types of construction defect “claims” in addition to “lawsuits.” This change becomes operative on July 1, 2014
The law now refers to “smoke detectors” as “smoke alarms”
Properties built since 2007 require smoke alarms in each bedroom, each hallway or area outside the bedrooms and on every floor even if there is no sleeping area on that floor
Commencing January 1, 2014, the law requires that for repairs that exceed $1,000 and for which a building permit is required, the owner must demonstrate that all smoke alarms required for the dwelling are devices approved by the State Fire Marshal.
For all rented units and for single-family properties commencing January 1, 2014, the landlord is not allowed to make the tenant responsible for testing and maintaining the smoke alarms.
Commencing July 1, 2014, new smoke alarms must be equipped with a 10 year non-removable, non-replaceable battery. There is an exception for existing inventory but only through July 15, 2014
Commencing January 1, 2015, new smoke alarms must additionally display the date of manufacture, provide a place to insert the date of installation and incorporate a hush feature.
Commencing January 1, 2016, if a property is rented or leased then the smoke alarms must be located to meet new construction standards, but existing smoke alarms need not be replaced, and there is no requirement to upgrade from battery operated to hard-wired.
Used mobile homes and manufactured homes that are sold must have smoke alarms installed in each room designed for sleeping and that are operable on the date of transfer of title
Seller of both single-family properties and two-unit dwellings are required to provide a written statement of compliance
Commencing January 1, 2014 anti-deficiency protections have been expanded to include that no deficiency can be owed or collected upon. Presently, most anti-deficiency protections state only that no judgment in court for the amount of the deficiency can be obtained.
The Short Sales Q&A (October 3, 2013) has been updated as follows:
Question 4 was revised to address the case of Coker V. JP Morgan Chase regarding shorts sales with purchase money mortgages.
Question 5 revised to include SB1069 protections for certain refinanced mortgages.
Section VII added to address lender use of online auction platforms.
Predatory Lending: The Home Ownership and Equity Protection Act. This Q&A was formerly named “Predatory Lending: the Federal High Cost Mortgage Disclosure” and has been extensively revised and updated to reflect pending changes to the law as a result of the Dodd-Frank Wall Street Reform and Protection Act.
Revised to include a warning that unscrupulous entities may pose as non-profit organizations offering HAFA short sales to unsuspecting homeowners and even soliciting money from real estate agents for certifications or membership into their organizations in exchange for leads or listings. HAFA was amended in March 2011 to allow loan servicers to approve short sales to non-profit organizations for the purpose of renting or reselling the property to the borrower as specified, but REALTORS® and their clients should carefully investigate the qualifications of these organizations before doing business with them.