• 4 YEARS for patent acts or omissions by contractors;
• 10 YEARS for latent acts or omissions by contractors;
• 2 YEARS for misrepresentations or omissions made by contractors in obtaining or renewing a license; and
• DURING THE WARRANTY PERIOD for breach of an express, written warranty.

Under the new law, one timeframe has been changed, and a new timeframe has been added:

• 18 MONTHS AFTER THE WARRANTY PERIOD for breach of an express, written warranty; and
• 2 YEARS for criminal convictions related to the qualifications, functions and duties of a contractor.

For the timeframes specified above for misrepresentations and omissions and criminal convictions, the timeframes start upon the discovery by the registrar of the misrepresentation, or the conviction.

This law amends California Business & Professions Code § 7091 and goes into effect on January 1, 2008.

Discrimination/Fair Housing

AB 976* Discrimination by Landlord Based on Immigration or Citizenship- Under existing state law, landlords may not discriminate against residential tenants based on various characteristics, including age, disability, gender, medical condition, race, color, religion, marital status, sexual orientation, ancestry and national origin.  Certain exceptions do apply, such as senior housing facilities and owner-occupied properties.

Under the new law, landlords of residential real property cannot use IMMIGRATION or CITIZENSHIP status as criteria for tenants, occupants, prospective tenants or prospective occupants.  Specifically, landlords and agents of the landlord may NOT:

• make ANY INQUIRY into immigration or citizenship status; nor
• require any (prospective) tenant or occupant to MAKE A STATEMENT about immigration or citizenship status.

Furthermore, the statute also prohibits local governments from adopting any ordinances or regulations which would require a landlord or any agent of the landlord of residential real property from:

• Inquiring;
• Compiling;
• Disclosing;
• Reporting;
• Providing information on;
• Prohibiting to offer accommodations; or
• otherwise taking any action

based on the immigration or citizenship status of any tenant, prospective tenant, occupant, or prospective occupant.

This law does not prohibit the landlord from requesting information or documentation to verify the identity or the financial qualifications of a tenant or occupant.

This law which adds California Civil Code § 1940.3 goes into effect on January 1, 2008. [Note:  this statute is added to the landlord/tenant law and was not included under the Unruh Civil Rights Act--California Civil Code § 51.]

Escrow Fee

AB 804* New Escrow Fee for Escrows Regulated by DOC-  Many escrow companies handling real estate transactions are licensed with the California Department of Corporations (DOC).  Some escrow companies, such as title insurers, are licensed by the Department of Insurance (DOI), and others, such as broker-controlled escrows, are licensed by the Department of Real Estate (DRE).  Under existing law, the DOC-licensed escrow companies are not entitled to any fee, commission or compensation which is contingent on performing any act, condition or instruction prior to the close and completion of escrow, except for a disbursement agreed upon by all parties.

Under the new law, escrow companies can charge an additional fee for administering an escrow when either (1) the escrow has been postponed for two months from the most recent closing date agreed by the parties, or (2) the escrow has been cancelled if the following conditions are met:

• the postponement or cancellation was CAUSED BY the PARTIES;
• the fee was indicated in at least 8 POINT BOLD TYPE on the FRONT PAGE of the escrow instructions; and
• the PARTIES have INITIALED those INSTRUCTIONS.

Furthermore, it is now a violation of the escrow licensing laws if the escrow company violates any provision of RESPA.  The new law requires that an escrow company provide an closing audit report within105 days or written notice of terminating its license.  Finally, this law requires escrow companies to make minor changes to their disclosures.