Dear San Jose Real Estate Buyers & Sellers:
Before anything, please receive my best wishes of health, personal and professional success in 2012. To those of you close to a short sales or already in foreclosure, best wishes of financial recovery in 2012 and know that foreclosure help is always available FREE from any Certified Short Sales & Foreclosure Expert in Silicon Valley.
I thought you might find it useful to know more about the new laws that will impact real estate buyers, sellers and home owners, including foreclosed sellers and FHA borrowers, during this upcoming year and most likely for years to come
New Real Estate Disclosures Laws
Effective January 1, 2012, the seller of a property will be required to disclose whether the property has water-conserving plumbing fixtures. By Jan. 1, 2017, a single-family residence built on or before Jan. 1, 1994, will have to be equipped with water-conserving plumbing fixtures. If, however, that single-family home is altered or improved on or after Jan. 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval.
Starting January 1, 2012, a company preparing a natural hazard disclosure (NHD) statement for a prospective buyer, as required for certain transactions, must disclose whether the property is located within one mile of a mining operation, according to map coordinate data from the Office of Mine Reclamation. If a property is within one mile, the NHD company must give a specified notice that such mining operations may cause inconveniences.
New Foreclosure Laws
Effective April 1, 2012, a notice of trustee’s sale for a non-judicial foreclosure of one-to-four residential units must contain specified notices to the owner on how to seek postponement of the trustee’s sale, and to potential bidders on the risks involved in bidding at trustee auctions. A lender or authorized agent must make a good faith effort to provide up-to-date information about sales dates and postponements to persons who want this information. The lender must also provide updated information through the Internet, a telephone recording, or any other means that allows free access at any time.
New Homeowner Association Laws
Beginning January 1, 2012, a homeowner association (HOA), upon written request, will be require to give an estimate of the fee for providing a prospective buyer with the governing documents of the common interest development and other required HOA disclosures. The bill also specifies that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees. In compliance with the bill, the California .Association of Realtors(C.A.R) has released a revised standard form (Homeowner Association Information Request) detailing which documents are required, and requiring the provider to disclose the fees that will be charged for the documents before they are provided. The seller of a CID must complete this form and transmit it to the prospective purchaser along with the required documents. This will eliminate any uncertainty for the prospective purchaser as to exactly which documents are being provided and the precise fees being charged for those documents.
Effective January 1, 2012, a notice for an executive session meeting of an HOA board of directors (other than emergencies) must be given to unit owners at least 2 days before the meeting. The board of directors cannot take action on any item of business outside of a meeting, except for actions that have been validly delegated to managing agents, officers, or any other persons. A board meeting may be conducted be teleconference as specified, but the notice of a teleconference meeting must identify at least one physical location where members can attend, and at least one director must attend the meeting at that location. A board meeting cannot be conducted by email, except for an emergency in the manner specified. Agendas for executive session meetings are no longer excluded from the records that HOA must make available for inspection.
Reminder to FHA Loans borrowers: Anti flipping rule waiver extended
FHA has extended its temporary waiver of its “anti-flipping rule.” The new extension remains effective through Dec. 31, 2012, unless otherwise extended or withdrawn by FHA. The ruling allows investors who acquire foreclosed properties at below-market value to be exempted from waiting the customary 90 days before reselling them. The 90-day waiting period originally was put in place to protect FHA borrowers against predatory practices of flipping where properties were quickly resold at inflated prices to unsuspecting borrowers.
Reminder to FHA Loan borrowers: Reinstatement of higher FHA loan limits
The FHA loan limit was reinstated last month. The higher loan limit expired on Oct. 1, 2011, when it was reduced to $625,500, but now has been restored to $729,750 for an additional two years, through Dec. 31, 2013. Reminder: National Flood InsuranceOn Dec. 17, 2011, Congress extended the National Flood Insurance Program (NFIP) authority through May 31, 2012.
(Source California Association of Realtors, 2012)
© Sophia Delacotte CDPE, SFR, CHS
San Jose Realtor
Cell: (408) 717-2575