In the dynamic realm of California real estate, it is essential to stay abreast of the latest legislative shifts to make well-informed decisions. The laws we have summarized for you encapsulate pivotal changes set to influence the real estate sector in 2024. These range from new disclosure mandates for property flippers to transformative adjustments in Accessory Dwelling Unit (ADU) regulations and the nuances of vacation rental policies. Understanding these developments is key to navigating your real estate endeavors with confidence and foresight.
Disclosures for Flippers: Requires “flippers” of residential 1 to 4 properties to disclose recent repairs and renovations. This applies to properties resold within 18 months of purchase. Includes standard Transfer Disclosure Statement (TDS) categories, exemptions, and cancellation rights. Effective July 1, 2024.
Fire Hazard Severity Zones: Expands the Natural Hazard Disclosure Statement (NHD) to include both High and Very High Fire Hazard Severity Zones (FHSZ). Differentiates between state and local responsibility areas for defensible space and fire hardening disclosures. Effective January 1, 2024.
ADUs as Condominiums: AB 1033 allows local agencies to enable the separate conveyance of Accessory Dwelling Units (ADUs) and primary residences as condominiums, subject to specific requirements. Effective January 1, 2024.
Prohibition on Owner-Occupancy Requirements for ADUs: Makes permanent the prohibition on local government requirements for owner-occupancy on parcels with ADUs. Allows rentals for 30 days or longer. Effective January 1, 2024.
Exclusions for Publicly Funded Low Rent Housing Projects: Adds exclusions to the requirement for voter approval for certain publicly funded low-rent housing projects. Effective January 1, 2024.
California Coastal Act Exemption Increase: Increases the exemption limit for improvements under the California Coastal Act from $25,000 to $125,000, adjusted annually for inflation. Aids coastal landowners in protecting homes from natural events. Effective January 1, 2024.
General Plan Consistency for Developments: Requires local agencies to approve developments consistent with the general plan, even if not consistent with the local zoning ordinance. Provides a legal remedy for non-compliance. Effective January 1, 2024.
Vacation Rentals – Mandatory Fee Disclosure: Mandates the disclosure of all mandatory fees in advertised rates for short-term lodging, effective July 1, 2024.
Cancellation Right for Vacation Rentals: Allows consumers to cancel short-term rental bookings within 24 hours without penalty if made at least 72 hours before check-in. Effective January 1, 2024.
If you have questions about how these changes might affect your real estate plans or need guidance navigating these new regulations, don’t hesitate to contact me. My goal is to support you in making the best decisions for your real estate needs.
Please note, we are not attorneys, and this summary should not be considered legal advice. For detailed information on these laws, we recommend consulting with a legal professional. Also, this is not a comprehensive list of all 2024 laws but a selection we believe is most relevant to our clients and customers.