Thanksgiving ushers the end of the pumpkins and fall-themed decorations, and introduces holiday decorations. Southern California has so many incredible holiday events from local Holiday Strolls, Tree Lighting Ceremonies, and neighborhoods that deck their homes with roof to sidewalk flashing Christmas lights.
We also have one month left in 2023 which means the planners among us are working on their 2024 resolutions. Every year KALEO agents’ aim is to help more people with their real estate goals. They focus on the person and not the number of sales. Each client is an opportunity for them to advocate and encourage.
As we get closer to the end of the year, we wanted to share some 2024 New Laws related to real estate. This is a brief overview so if you have more specific questions, let us know.
Flipper Disclosures: “Flippers” will have to disclose recent repairs and renovations. Already, California home sellers have required disclosures like the Transfer Disclosure Statement. This new flipper disclosure is in addition to existing disclosures.
One law that has made a lot of headlines is the Housing Law which allows ADUs to be sold separately from the primary house as a condominium. As CAR explains, the law, “AB 1033 allows local agencies to adopt ordinances to allow the separate conveyance of ADUs and primary residences as condominiums. Any such ordinance must require that the process to establish the condominiums complies with both the Davis-Stirling Common Interest Development Act, which governs homeowners associations (HOAs), and the Subdivision Map Act, which governs the subdivision of property.”*
Do we expect to see a deluge of ADUs hitting the market? It still seems like there is a lot to do to sell an ADU separately. One thing that is certain is that many contractors are receiving a lot of inquiries and business from people wanting to convert garages into ADUs and build new ADUs.
In the Landlord and Tenant sphere, there are several changes to existing laws. Security Deposits will be limited to one month total starting July 1, 2024, with limited exceptions. “AB 12, beginning July 1, 2024, prohibits a landlord from demanding or receiving security for a rental agreement for residential property in an amount or value in excess of an amount equal to one month’s rent, regardless of whether the residential property is unfurnished or furnished, in addition to any rent for the first month paid on or before initial occupancy.”* This security deposit law is not retroactive and doesn’t affect current leases that already have security deposits.
As Listing Agents, one that directly affects us is that Exclusive Listing Agreements are now capped at two years and can’t be recorded.
There are many more laws than those affecting real estate, but those are a few that stuck out to KALEO agents.
Between now and the end of the year, KALEO agents are open for “Pre-2024 Real Estate consultations” if you have questions that need answering. Whether you are finally going to retire and move to the beach, buy a vacation home in Big Bear, help your kids purchase a home, or buy an investment property, KALEO agents are here for you!
