There are several new lawsthat have been enacted for 2011 that you should be aware of as a property owner. Whether your real estate holdings include only your personal residence or you are a landlord with several properties, the following are just a few new real estate laws for 2011:
SHORT SALE DEFICIENCY JUDGMENTS PROHIBITED: SB 931
This new law prohibits a lender holding a first deed of trust (purchase money or refinance) for a dwelling of 1-4 units to demand a deficiency judgment (unpaid balance due on the loan) from the trustor or mortgagor (owner) who sells the dwelling for less than the remaining amount of the indebtedness due at the time of the short sale to which the lender has consented in writing.
However, if the owner commits either fraud with respect to the short sale, or waste (ie damage) with respect to the secured real property, then the lender may seek monetary damages and use existing rights and remedies against the owner or any third party for fraud or waste.
LANDLORD RESPONSIBILITIES TO SERVICE PROVIDERS: HR 5297
H.R. 5297 includes an expansion of the 1099 reporting related to a trade or business. Starting Jan. 1, 2011, any person who receives rental income must provide a Form 1099 for all payments of $600 or more made to service providers such as plumbers, carpenters, yard services and repair people. The purchase of goods is not included within the reporting requirement. The Form 1099 is provided to the IRS and to the service provider. The new requirement applies to both residential and commercial property.
CARBON MONOXIDE DETECTOR INSTALLATION: SB 183
This law enacts the Carbon Monoxide Poisoning Prevention Act of 2010. The law requires a carbon monoxide device (battery or hard-wired) to be installed in a "dwelling unit intended for human occupancy." A violation is punishable by a maximum fine of $200 for each offense. Owners of residential rental property must also comply with this law. Tenants are responsible to notify the owner of an inoperable or deficient carbon monoxide device.
Installation Time Period:
- On or before July 1, 2011 for existing single-family dwelling units
- On or before Jan. 1, 2013 for all other existing dwelling units
CLICK HERE FOR A DETAILED LIST OF ALL 2011 REAL ESTATE LAWS
COASTAL SAN DIEGO PROPERTIES