Even when homeowners do not file a declared homestead on their residence, the residence may be protected from sale by the “residential exemption” under California Code of Civil Procedure §§ 704.710 – 704.850.  In order to qualify for the protection of the “residential exemption”, either the homeowner with the judgment against him or her, or the homeowner’s spouse must have lived in the property at the time the lien attached to the residence, and either the homeowner or their spouse were required to reside in the residence continuously since then.  For purposes of these statutes, a spouse did not include a married person following entry of judgment of legal separation of the married couple.

Under the new law, the “residential exemption” applies even though the homeowner does not live in the property, if either (1) a separated spouse or (2) a former spouse:

• Resides in the Property, or
• Exercises Control over Possession of the Property.

The changes to the law do not allow any debtor to have more than one property as a homestead.  Additionally, the law does not change the rule that only the homestead of one of the spouses is considered to be exempt, if the debtor and the spouse reside in separate homesteads.

This law amends California Code of Civil Procedure § 704.720 and the provisions of this new law become effective on January 1, 2008.

Licensing

AB 839* Real Estate License Renewal for Persons in the Armed Forces- Under current law, certain members of the military who have a real estate license are given an automatic extension of time to get a renewal of their license.  In order to qualify, the licensee must notify the Real Estate Commissioner within six months of active duty.  The military licensee is not required to renew his or her license until the earlier of engaging in real estate business, or one year after termination of military service. The exclusive list of members of the military includes only members of the following:

• United States Army;
• United States Navy;
• United States Air Force;
• Marine Corps;
• Merchant Marine in times of war;
• Coast Guard; and
• Public Health Service (officers only) detailed by proper authority of the Army or Navy.

Under the new law, one additional military organization has been added:

• National Guard.

This law amends California Business & Professions Code § 10460 and goes into effect on January 1, 2008.

AB 1153* Mobilehome Dealer Licensee Fingerprinting Required- Under current law, manufacturers, distributors, dealers and sellers of mobilehomes, manufactured homes, or commercial coaches are required to get a license or a temporary permit from the Department of Housing and Community Development (HCD).  The provisions provide for the applicant to furnish all information as reasonably required, including proof of successful examination, proof as a manufacturer, distributor, dealer or salesperson, and information relating to the applicant’s character, honesty, integrity and reputation.

Under the new law, the applicant must submit fingerprints and related information to DOJ, which will submit that information to the FBI for federal criminal history information.  DOJ will then submit federal and state criminal history to HCD.  HCD will also request subsequent arrest notification from the DOJ for each applicant.

This law amends California Health & Safety Code §§ 18050 and 18070.3 and goes into effect on January 1, 2008.

AB 840* Real Estate Licensee Discipline- Under existing law, the DRE has the ability to suspend or revoke a license, or to deny the application for a license for various specified reasons under California Business & Professions Code §§ 10176 and 10177.  One of those reasons is “a felony or a crime involving moral turpitude” in which the Court of Appeals in Petropoulos v. Department of Real Estate (2006) 142 Cal. App. 4th 554, interpreted to mean that a misdemeanor must involve “moral turpitude” in order for the DRE to take disciplinary action.

Under the new law, the “moral turpitude” element has been eliminated and replaced with a crime “substantially related to the qualifications, functions, or duties of a real estate agent”.  The felony element remains unchanged.  A corresponding change has also been made for mineral, oil and gas licensees regulated by the DRE.

This law amends California Business & Professions Code §§ 10177 and 10562 and the provisions of this new law become effective on January 1, 2008.

Mobilehomes

SB 538* Difference Between Mobilehome and Manufactured Home- This new law clarifies the difference between “mobilehomes” and “manufactured homes”, and also creates a new category for “multifamily manufactured home.”  The law also changes the permissible scope of work for a General Manufactured Housing Contractor (C-47).

Under existing law, the terms “mobilehomes” and “manufactured homes” are used interchangeably in many California statutes.

Under the new law, the differences between “mobilehomes” and “manufactured homes” are clarified, and a new category of “multifamily manufactured home” is added.  This change is intended to provide additional benefits from lenders and others in the housing industry for “manufactured homes” which might not be available for “mobilehomes”.

All single-family factory-constructed housing built on or after June 15, 1976, that is in compliance with the standards of the United States Department of Housing and Urban Development promulgated under the federal National Manufactured Housing Construction and Safety Standards Act of 1974
(42 U.S.C. § 5401 et seq.) are "manufactured homes,"  and not "mobilehomes."

Furthermore, this new law also changes what is the permissible scope of work allowed by a General Manufactured Housing Contractor for these separate categories.  Finally, this law also authorizes the Department of Housing and Community Development to adopt regulations relating to commercial modular homes.

This law amends California Health & Safety Code §§ 18000, 18007, 18008, 18008.7 and 18028, and adds California Business & Professions Code § 7026.11.  This law also amends the heading of Part 2 of Division 13 of the California Health & Safety Code.  The provisions of this new law become effective on January 1, 2008. 

AB 446* Notice Required Prior to Mobilehome Removal- Under current law, a mobilehome park, generally, cannot force the removal of a mobilehome when it is sold to a third party during the homeowner’s rental agreement or in the sixty (60) days following the park's providing certain notices. When the homeowner makes a sale to a third party, the mobilehome park may require removal of the mobilehome to upgrade the quality of the park if (1) it is not a mobilehome as defined, (2) it is over a specified age, or (3) it is in significantly rundown condition.

Under the new law, the mobilehome park may not require removal of the mobilehome upon the sale of the mobilehome to a third party unless the mobilehome park has provided to the homeowner a notice which indicates the specific reasons that the mobilehome may be removed.