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IMPORTANT THINGS YOU SHOULD KNOW!   (Updated: January 2012)

TDS Disclosure of Water-Conserving Plumbing Fixtures (eff. Jan. 1, 2012/2014/2017) The TDS form has been revised to include checkbox in Section IIA for a seller to disclose whether the property has water-conserving plumbing fixtures (low-flow toilets, shower heads, and faucets). The revised TDS also clarifies in Section IIB that, by January 1, 2017, a single family residence built on or before January 1, 1994 must generally be equipped with water-conserving plumbing fixtures. If, however, the single-family residence is altered or improved on or after January 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval. Senate Bill 837 (codified as Cal. Civil Code § 1102.6)

Tenants Smoking Ban (eff. Jan. 1, 2012) A residential landlord can prohibit the smoking of cigarettes and other tobacco products anywhere on the premises, including any interior or exterior area on the property. For new tenants in 2012, the areas where smoking is prohibited must be stated in the lease or rental agreement. For preexisting tenants before 2012, a new smoking ban is a change in the terms of tenancy that requires adequate written notice, depending on whether the tenancy is a month-to-month or fixed term agreement. Senate Bill 332 (codified as Cal. Civil Code § 1947.5) (effective January 1, 2012).

Imposing Mello-Roos Tax for Energy Efficient Improvements (eff. Jan. 1, 2012) The Mello-Roos Community Facilities Act has been expanded to allow a local government to impose a special tax for financing real property improvements for energy efficiency, water conservation, and renewable energy. This law also establishes new community facility district procedures for, among other things, annexation proposals and bond indebtedness. Senate Bill 555 (codified as Cal. Gov't Code § 53313.5(l)) (effective January 1, 2012).

Carbon monoxide detectors; smoke detectors and water-heater bracing disclosure (eff. July. 1, 2011) 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

Home inspection to include HERS home energy audit, if requested (eff. Jan. 1, 2011) This new law authorizes a home inspection to include, if requested by the client, a Home Energy Rating System (HERS) Program energy audit. For more information about the California Energy Commission's regulations, standards, and approved HERS providers, go to for more details

Tenant protection for domestic violence victims (eff. Jan. 1, 2011) Starting Jan. 1, 2011, a residential landlord cannot terminate or fail to renew a tenancy based on domestic violence against the tenant or tenant's household members as specified. This law applies if the person restrained from contact with the tenant by court order or named in a police report is not also a tenant of the same dwelling unit. If the protected tenant subsequently allows the person restrained to visit the property, or the landlord reasonably believes the person restrained poses a physical threat to others or to quiet possession by other tenants, the landlord may serve a three-day notice to correct or quit. To further ensure safe housing for domestic violence victims, this law also requires that, for leases entered into after January 1, 2011, a landlord changes the exterior locks of a protected tenant's dwelling unit within 24 hours after the tenant provides a written request and supporting court or police documentation as specified.

Landlords to report payments of $600 or more on IRS Form 1099 (eff. Jan. 1, 2011) 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.

Discharge of balance of loan indebtedness after a short sale for residential 1-4 real property by holder of a first deed of trust (eff. Jan. 1, 2011) 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 with respect to the secured real property, then the lender may seek damages and use existing rights and remedies against the owner or any third party for fraud or waste. Note that this law doesn't apply if the trustor or mortgagor is a corporation or political sudivision of the state.

Consumers can access free Credit Report: Consumers in 13 Western states--including California--will be able to requests a free annual credit report by visiting annualcreditreport.com, or calling 877.322.8228, or mailing a standardized form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.) It is strongly recommended that consumers regularly check their credit standing.