Legislative Gossip Years:  2009 / 2010 / 2011 / 2012 / 2013

Last Updated: December 7, 2011

Here’s a list of the 2011 Legislative Session’s bills and Department of Real Estate Regulations which may substantially affect how you do business as a real estate licensee. Bills are sorted by topic, and we provide you with the bill number, the status, and a brief description of the bill. Reports on passed bills can be found on our Legislative Watch page. This list is updated every month.

Status Legend:

INTRO = Date the bill was originally introduced for consideration. Bill is still being considered, but not yet law.
AMENDED = Date the bill was last amended. Bill is still being considered, but not yet law.
ENROLLED = Bill approved by both houses and pending the governor’s signature.
PASSED = Bill signed by the governor and passed into law.

Appraisers and appraisal
SB 6PASSED
10/09/11
This bill prohibits a DRE licensee from providing an opinion of value on real estate if his compensation is dependent on the value of the real estate. This bill further codifies the prohibitions against influencing appraiser valuations as previously addressed in DRE releases and the Dodd-Frank Act.
Department of Real Estate and Licensing
DRE RegPASSED
10/26/11
Appraisal influence:This regulation adds the existing list of activities which constitute improper appraisal influence into the DRE Regulations, and adds additional activities which are considered improper appraisal influence to the existing, non-exclusive activities.
DRE RegPASSED
10/26/11
The bar order and broker supervision:This regulation clarifies a broker’s duty to have direct supervision over the activities of his agents. It specifies how and to whom delegation of a broker’s supervisory activities may be made. Editor’s note — individuals prohibited from participating in real estate activities are now ‘debarred’. Does this lift the real estate industry to that of the legal industry…?
DRE RegPASSED
08/31/11
Good standing:This regulation redefines a license in “good standing” as one which has never been suspended, revoked or restricted as a result of disciplinary action. Licenses which expire but are renewed within the statutory grace period are still considered in “good standing”.
DRE RegPASSED
10/26/11
Trust funds:This regulation clarifies trust fund activities which violate the fiduciary duties a broker owes to a client.
DRE RegPASSED
09/10/11
Nicknames:This regulation allows DRE-licensed individuals to use nicknames in their real estate practice, provided it is accompanied by their last name and DRE license number.
SB 53PASSED
10/09/11
This bill gives the DRE Commissioner the authority to issue citations to unlicensed persons engaging in activities requiring a DRE license, including desist and refrain orders and administrative penalties up to $2,500. This bill additionally imposes a reporting requirement for DRE licensees who engage in escrow activities equaling or exceeding $1,000,000 in any one calendar year.  Further, this bill requires a broker engaging in a sale which may be subject to securities law to issue a statement to the DRE commissioner and to any potential investors in the security whether the sale of the security has been qualified or exempted from securities law.
Governments and property
AB 328INTRO
02/10/11
This bill would reduce the amount of compensation paid to a property owner in an inverse condemnation case by an amount proportionate to his own percentage of fault in the damage of the property.
SB 744AMENDED
07/13/11
Water submeter installations:This bill would require manufacturers of water submeters to notify the county sealer of the installation of a water submeter at the time it is installed or placed in service. It also provides that a water submeter used in a multi-unit residential structure is considered to be placed in service only after its installation.
Landlording
AB 265AMENDED
05/03/11
This bill would allow a residential tenant guilty of unlawful detainer to redeem a tenancy and remain on the rented premises, providing the tenant pay the any rent due, court costs and the landlord’s attorney’s fees in the unlawful detainer action.
AB 317AMENDED
04/25/11
This bill would make a mobilehome space which is not the sole residence of the occupant exempt from local rent control ordinances.
Mortgages: general, defaults, foreclosures and loan modifications
FHA ProposalINTRO
01/20/12
This proposal would reduce the maximum allowable seller concessions to reflect industry norms. The proposal calls for a 30 day public comment period and analysis before a final rule is issued.
SB 2INTRO
12/06/10
This bill would extend the prohibition on brokers collecting advance fees for loan modification services from January 1, 2013 to January 1, 2015, and additionally prohibit brokers from collecting advance fees for negotiating or arranging short sales.
SB 4PASSED
09/06/11
This bill requires the notice of trustee’s sale on a one-to-four unit single family residence to include provisions notifying bidders at a trustee’s sale of the risks involved in bidding at a trustee’s sale. This bill additionally requires a separate notice be sent to the homeowner of that property informing the homeowner how to obtain information about the postponement of the trustee’s sale.
Taxation
AB 188PASSED
09/01/11
This bill extends a deceased disabled veteran’s property tax exemption to his unmarried surviving spouse who is confined to a hospital or care facility, provided the property was the spouse’s principal residence on the date of her confinement.
AB 261PASSED
09/21/11
This bill provides that all tax-defaulted property sold by a county tax collector will be free and clear of all debts and easements of any kind.
AB 368INTRO
02/14/11
This bill would reduce the minimum annual tax in the first six years of any corporation, limited partnership, limited liability partnership or limited liability company commencing business in the state between January 1, 2012 and January 1, 2018.