California loves new laws and there are plenty of new ones for the real estate industry this year.

Most of the legislation came in reaction to events in the state. New rules for balconies came after a tragedy in Berkeley that killed six students. Stronger fire insurance regulations were in reaction to destructive wildfires. Laws helping tenants came as housing shortages and homelessness become more of a political issue.

Renter protections (AB 2343 and SB 721)
Renters will now potentially have more time to fight an eviction. The previous law said a renter would have three days to pay rent or get out. But, the new law has switched it to business days.

That means if a renter gets a notice on a Friday, they will be able to stay — or get the situation sorted out — by Wednesday the next week. Also, holidays don’t count so that could also extend time depending on when the landlord served the notice.

Another law that will apply to renters is a requirement for landlords to get balconies inspected every six years to ensure they are sturdy. The inspector must be a licensed architect, civil or structural engineer, building contractor with special licenses or a certified building inspector from outside the local jurisdiction.

Landlord benefits (AB 2219)
If someone else is paying your rent, they might have to put in slightly more effort. A new law relates to California’s strong tenant laws.

The landlord can request a third party includes a letter with the rent that says they are not a tenant and, even though they are paying, they acknowledge they don’t have any rights as a tenant.

Commercial landlords (AB 2173)
If a business abandons their space without paying rent, landlords now have some relief. Before, a landlord had to wait 14 days after rent was unpaid before they could give the tenant notice. It has now been shortened to three days.

Also, abandoned personal property created additional headaches. If what was left behind was deemed to be more than $750 it has to be sold in a public sale, instead of just keeping it or throwing it out. The threshold has now been moved up to $2,500.

Fire Insurance (SB 824, 864, 917, 30 and AB 1772, 1800, 2594, 1875)
In the wake of wildfires, there are a litany of new laws aimed at protecting consumers and aimed at insurers.

Under the changes, a person who loses their entire home cannot be denied repayment if they build or buy another home at a different location. Also, the statute of limitations to sue an insurer has been extended from 12 to 24 months.

Other laws prevent an insurer from refusing to renew a home insurance policy one year to the date of an emergency declaration, increase living expenses for survivors and extends the period a policyholder can collect full replacement benefits from 24 to 36 months.

Loans (SB 1201)
If negotiations of a loan modification was in one of five languages, it is the requirement of financial institutions to translate documents. The languages are Spanish, Chinese, Tagalog, Vietnamese and Korean.

Employment (AB 2282 and AB 1976)
New laws affecting the hiring and treatment of employees will affect all businesses in the state, not just those working in real estate. 

Businesses can no longer ask prospective employees their salary history. But, an employer can ask an employee what their employee expectations are.

Employers might want to be careful about another wrinkle in the law, which requires an employer to provide a pay scale for the position if the employee asks after the interview.

Source: SDuniontribune by Phillip Molnar