Saturday, June 18, 2011

REMINDER: Carbon Monoxide Detectors Required In All Single Family Dwellings by July 1

From the SAMCAR Relay Newsletter of 6/10/11:

Carbon Monoxide Detectors must be installed, consistent with new construction standards or according to the approved instructions for the detectors, in all existing single-family dwelling units no later than July 1, 2011. All other dwelling units (such as apartments) must have proper carbon monoxide detectors no later than January 1, 2013.

The new regulation also creates disclosure requirements with respect to carbon monoxide detectors. Currently, sellers of residential properties must provide the buyer with a Transfer Disclosure Statement (TDS). The TDS requires the seller to answer a variety of inquiries as to features of the property. The statute amended the TDS such that, effective January 1, 2011, the seller will have to verify whether or not the property contains one or more carbon monoxide detectors.

Background: on May 7, 2010, California Governor Arnold Schwarzenegger signed into law Senate Bill 183 (Lowenthal), a bill that requires the placement of carbon monoxide detectors in all California dwelling units. The bill also requires that the presence or absence of these devices must be disclosed when residential real estate is transferred.

This law deals with existing housing. (New construction standards are set by other state agencies.) It covers every "dwelling unit intended for human occupancy" which means single-family housing, factory-built homes, condominiums, motels, hotels, dormitories, and dwelling units in "multiple-unit dwelling unit buildings" (apartment houses). It applies to every dwelling unit that has "a fossil fuel burning heater or appliance, fireplace, or an attached garage".

"Fossil fuel" means "coal, kerosene, oil, wood, fuel gases, and other petroleum or hydrocarbon products, which emit carbon monoxide as a byproduct of combustion."

The requirements are that such dwelling units will have to have installed a "carbon monoxide device" that is designed to detect carbon monoxide and produce a "distinct, audible alarm." The device may be battery-powered, a plug in, or hard-wired with a battery backup. The carbon monoxide detector may be combined with a smoke detector, but, if it is, it must emit "an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning.

"NOTE: Even if the answer is "no" on the TDS, that data will not invalidate the sale or transfer of the property. Thus, while the lack of such a carbon monoxide detector may fail to meet current safety standards; a transfer of the property may still take place.

Saturday, June 11, 2011

Hey Case Schiller - It's not the end of the real estate world!

This is a very insightful article from Jim Gillespie, the Coldwell Banker CEO. It's so true for the Bay Area because real estate trends are LOCAL and can't be averaged mathematically into a NATIONAL hodge-podge. Contact us with any questions - we are here to help!


So many of us giggled nervously as we thankfully avoided the end of the world a couple of weeks ago. But judging by the continued “end of the world” type coverage the Case-Schiller housing study got this week, maybe we are nearing the end.

Yes. I am joking, but I am amazed at the attention this report gets. It covers 20 markets, yes only 20, and that is just one of its many flaws. Yet many consider it “the be-all-and-end-all” economic indicator that defines our entire national housing picture. As we know, all real estate is local, and it is unfortunate that the reporting on a 20-city “national” index can have such a jarring impact on otherwise rational people.

Look at some of the headlines the other day:
“Home prices at lowest point since 2006 bust”
“Home values continue downward churn”
“No relief in sight’ for falling home prices”

And even in paradise – Maui- the front page headline in the paper screamed “Crash Spreads.” And Maui isn’t one of the 20 markets. In fact the nearest market covered is San Diego, a mere 2500 miles away!

Shawn Daly, an agent with Coldwell Banker Residential Brokerage in Evanston, Illinois, had to calm down two skittish buyers this week.

One, who is currently working in Iraq, had initially placed on offer of $450,000 on a lakefront Chicago condo. The sellers countered with a price of $525,000. But after seeing Case-Schiller inspired headlines on the web, Shawn’s client emailed him to ask that he lower his offering price by $50,000. Shawn explained that the sellers did not agree with his first offer so if he went lower he wouldn’t get the home. The buyer calmed down and agreed.

Shawn correctly pointed that the Case-Schiller Home Price Indices are meaningless to individual buyers who are looking at specific houses, on specific streets, in specific neighborhoods.

Then yesterday, Shawn met another client for a tour of potential homes. They hardly said hello without telling Shawn they were more nervous than ever after seeing the report on the news.

You have a right to be nervous, but I can’t say this enough. Now is the smartest time in my 36 years in real estate to buy a home if you have the lifestyle reason, financial stability and viability to do so.

And it’s all about “Triple I…P”. Inventory, Interest rates, Incentives and Pricing. Start with inventory, because most communities have seen a rise in the amount of homes on the market, you have more choices. Interest rates for mortgages remain at near-historic lows and have actually trended down over the last 7 weeks, with Freddie Mac reporting 30-year fixed rates now averaging 4.55%. Incentives are the tax advantages to home ownership. And of course, there are prices. Prices are down from mid-decade highs, but in many, many markets are showing stability, slight declines or even increases. Home affordability remains near record levels and the price-to-value proposition in most markets is extremely compelling.

If you are interested in buying a home, you owe it to yourself to contact a real estate agent in the community you are interested in. Look at homes, do a rent vs. buy analysis, explore what is available in your price range.

Don’t just take my word for it. Do your homework.

You might just be surprised that the end of the world isn’t here yet … at least until next month’s report.

Wednesday, June 8, 2011

Trulia crime stats are out today!

Trulia's crime statistics beta product is out today for 50 cities. San Francisco is the only Bay Area city included so far. It's interesting - here's the link: http://www.trulia.com/crime/

Monday, June 6, 2011

Buyers Beware! $729,500 max loan limit going away this summer!

This information is from Stefani Hartsell with Princeton Capital. She does a great job staying on top of all the news we need to help our clients. If you are thinking of buying in this price range, now would be a good time. Need help - contact us.

I’ve had a few requests to review the changing max temporary high balance conforming loan limit…

Right now the max conforming loan amount in the Bay Area is $729,750. Current legislation has this expiring on 9/30 and it will roll back to $625,500. But what does that date mean?

It is important to understand how the legislation is written. The 9/30 date is the last day that Fannie Mae or Freddie Mac can buy loans up to $729,750. Fannie Mae and Freddie Mac do not lend directly to the public. Lenders do and then they package their loans and sell them to Fannie Mae or Freddie Mac. Currently more than 9 out of 10 of all new mortgages are sold to Fannie Mae or Freddie Mac.

So, Lenders will need to cut-off their lending earlier than 9/30 so that they can package up their loans and get Fannie Mae or Freddie Mac to purchase them prior to the cut-off date. If the loan is not accepted by 9/30, then the Lender gets to keep it for 30 years.

That’s a lot of risk. Last time the temp high balance limit ended, Lenders started cutting off the higher limit 4-6 weeks ahead of the cut-off date. Also, as fewer and fewer lenders were willing to fund those loans, the rates became less and less attractive due to the loss of competition.

No one has made any announcements yet, but the prudent buyer would close well ahead of those dates.


Stefani Hartsell
Senior Loan Consultant
NMLS #281600
(650) 207‐5005 cell
www.princetoncap.com/stefanihartsell

Tuesday, May 31, 2011

Protect Your Home While You Travel

Planning your next getaway? Unfortunately, an empty house can be a tempting target for would-be burglars. Follow a few simple precautionary measures to secure your home, whether you’re leaving for weeks or just a weekend.

Make your home look lived in - Install automatic timer switches on lights, radios, and the TV. They’re inexpensive and many include variable timing schedules to create the appearance of activity in the house. Take extra steps to make your home seem occupied by turning off the ringer for your phone and parking a car in the driveway.

Alert the neighbors - Ask your neighbors to keep an eye on the house and leave them an emergency phone number. You might also consider hiring them to mow the lawn, water the plants, and put the trash cans out.

Stop all deliveries - Make sure things don’t pile up on the porch while you’re gone. Newspapers, mail, packages, and door flyers are all tell-tale signs that you’re away.

Secure your doors and windows - Use high-quality deadbolt locks on your doors, additional blocking devices on sliding glass doors, and sash locks on your windows. These can be easily retrofitted.

Install an alarm system - Deter would-be intruders with an alarm system and stickers on the exterior of your home. Many systems offer monthly monitoring for added protection. However, make sure everyone in the home knows how to properly use the system to avoid false alarms.

Remove valuables and keys - Leave your house key with a trusted friend (not hidden outside your home), and take valuables to a bank safe deposit box.

Spending a little time to protect your home before you go on vacation is well worth the effort. You’ll reduce your chances of being targeted and ensure a happy homecoming.

Enjoy your trip!

Tuesday, May 24, 2011

Millbrae requires sewer lateral test before close effective 4.22.11

Just like Burlingame and Hillsborough, Millbrae now requires a sewer lateral inspection when a home is sold. The inspection must be done and reviewed by the City before close of escrow.

The inspection should cost between $250 and $300. If issues are found during inspection or during the City's review of the inspection video, repairs must be made.

The biggest gotcha is this - if the property is found to have a shared sewer lateral, it's the property owner's responsibility to separate the sewer into separate sewer laterals for each parcel. Typically, these costs are split 50/50. It's the selling owner who has to negotiate this split.

Yikes.

Tuesday, May 17, 2011

Realtors Take to Capitol Hill to Fight For Homeowners

This article is from Rick Turley, the President of the SF Bay Region of Coldwell Banker, our boss.

Bay Area home buyers, sellers and real estate agents better get familiar with a few acronyms – MID, QRM and GSE – because they’re likely to hear a lot about them in the months ahead. These are the equivalent of WMD to the housing market. And what happens to them could have a very real impact on local home values and the health of our market.

As a Director at NAR, I represent Coldwell Banker in a committee consisting of leaders of large brokerage firms across the country, assembled to give guidance and feedback to the NAR executive team. The NAR legislative meetings held last week in Washington DC, also offers the opportunity each year for Realtors to meet with Congressional leaders on Capitol Hill. Along with hundreds of other NAR committee members from all 50 states, including some of our very own Bay Area CB Realtors, we called upon our respective elected officials to discuss our fragile housing recovery. Congressional leaders are looking at anything and everything during this time of historic national debt, and they need to understand the devastating impact that some proposed changes in housing policy could have on our local market.

Lawmakers are considering a variety of policy revisions, including reducing or even eliminating the mortgage interest deduction (MID); tightening Qualified Residential Mortgage (QRM) rules for borrowers, and eliminating Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac, which are critical to keeping mortgage money readily available.

We met with Senator Diane Feinstein, and Representatives Speier, Honda, and Eshoo about the importance of maintaining the mortgage interest deduction, especially here in the Bay Area. The deduction is something all of us take for granted as we file our annual tax returns. It’s one of the foundations of homeownership in this country and helps bring housing within reach of millions of Americans.

If lawmakers lower the maximum loan amount to $500,000 – one of the plans under consideration – it may not have a big impact in places like the Midwest or South, where homes typically sell for $200,000 to $300,000. But it would have a huge impact for high-priced markets like ours in the Bay Area.

Members of Congress don’t consider the high cost of living in areas like ours when they propose changes like this. Most assume $800,000 will buy a mansion for the wealthy. But those of us who live here understand that it may just get you a modest starter home. I doubt that first-time buyers in many Bay Area cities who are using both of the couple’s income to qualify for a $750,000 to $800,000 home feel very wealthy.

“Tax incentives for home ownership have been a part of our tax system for decades and are deeply woven into our economic fabric,” a local Realtor Association president told lawmakers. “Reducing or eliminating the MID is a de facto tax increase on home owners, who already pay 80 to 90 percent of U.S. federal income tax.”

Changes to QRM rules would require significantly higher down payments for both homebuyers as well as those trying to refinance their mortgage. Buyers would face a minimum of 20 percent down, while those refinancing mortgages would be required to have 25-30 percent equity in their properties in order to get a loan.

We understand Congress’ interest in trying to reduce the default rate among borrowers, but this isn’t the answer. As the Mortgage Bankers Association pointed out in a white paper, high down payment and equity requirements will not have a meaningful impact on default rates. But they will require millions of consumers, who are at low risk of default, to either put off buying a home or pay unnecessarily higher interest rates.

Finally, a number of bills making their way through Congress have provisions that would significantly reduce or eliminate Freddie Mac and Fannie Mae within the next few years. Since both GSEs purchase mortgage loans and repackage pooled loans that are sold on the secondary market, this could have a significant impact on the availability of home loan financing.

Realtors urged lawmakers to tread very carefully in reforming Fannie and Freddie. Without a secondary market, mortgage interest rates would be unnecessarily higher and outright unaffordable for many Bay Area buyers. While GSE reform is necessary, the federal government must have a continued key role in the secondary mortgage market to ensure capital and liquidity in the market.

This is not the time for Congress to consider radical housing policy changes. Just as we are seeing a gradual recovery in the housing market, any one of these legislative changes could halt the progress we’ve made. All three could be catastrophic. I urge you to join me in contacting your local representatives in Congress to urge them to take these facts into consideration as they look at any changes to our nation’s housing policy.

That’s it for now. Have a good week!
Rick

Rick Turley
President, San Francisco Bay Area
Coldwell Banker Residential Brokerage

Sunday, May 8, 2011

Financing Vacation Homes

It's not as easy as it was in 2005 to finance a vacation home purchase - but still possible. This New York Times article provides all the details:

http://www.nytimes.com/2011/05/01/realestate/01mortgages.html?_r=1&ref=realestate

Interested in purchasing a vacation home? We can help.

Judy Clarke
The Clarke Team
Bay Area Real Estate
650-489-5399
sold@clarketeam.com

Saturday, April 30, 2011

Great News - onerous 1099 landlord reporting law repealed!

Congress repealed a law in early April that would have required ALL landlords (even those who rent out a room in their home) to file a 1099 for any services paid to vendors over $600 starting next year.

Whew! That will save lots of time and money. Thank goodness for the National Association of Realtors!

Here's a link to a detailed article:
http://speakingofrealestate.blogs.realtor.org/2011/04/08/600-1099-landlord-reporting-law-repealed/

Saturday, April 23, 2011

Here are some interesting ideas for remodeling if you can't afford to move up to a new home at this time:


Homeowners unable to purchase a new home – either due to stricter loan guidelines or because they are underwater on their current mortgage -- may want to consider remodeling certain areas of their home to make it more suitable to their current lifestyle. Currently, homeowners can find bargains for items such as kitchen cabinets, granite in the bathroom, and landscaping services.


The costs for custom cabinets are down approximately 20- to 30-percent, due to lower material costs and cabinetmaker discounts. Some cabinet manufacturers are responding to the fall in demand by reducing or eliminating surcharges for custom-size cabinets, decorative finishes, and higher-end wood types.


In the bathroom, homeowners can find discounts of up to 50 percent on granite, due to inventory backlogs and new foreign competition, and on porcelain sinks, due to a surge in Chinese imports.


Experts say homeowners are continuing to focus upgrades less on recouping their investment and more on the enjoyment factor, which is one reason there has been a surge in outdoor living spaces. Costs of installation are down 20 percent or more amid a construction labor glut and consumers are finding it easier to negotiate prices with landscapers.

Wednesday, April 20, 2011

Interesting alternative to refinancing to remove spouse from loan

Here's a link to an interesting article from the N.Y. Times. It offers an alternative solution to refinancing to remove a spouse's name from the mortgage after a divorce. May not work for everyone, but definitely something to consider:


http://www.nytimes.com/2011/04/10/realestate/10mortgages-refinancing-divorce.html?_r=2&ref=realestate

Sunday, April 17, 2011

Prompt Decision for Qualification for Short Sale Act of 2011

Here's an article from the National Association of Realtors website which brings a little hope to the heart of Realtors and troubled homeowners alike. Caution - talk to an attorney and a CPA before deciding which path to take if you cannot make your mortage payments.

Washington, April 13, 2011

A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the National Association of Realtors®, would impose a deadline of 45 days on lenders to respond to short sale requests.


The legislation, the “Prompt Decision for Qualification for Short Sale Act of 2011,” was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.).


“The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I.


“Realtors® and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale. After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure,” said Phipps.


NAR has been actively pushing the lending industry to improve the process for approving short sales, which represent about 13 percent of recent home sales according to NAR data. Phipps praised Reps. Rooney and Andrews for their efforts on the bill and urged Congress to pass the bill quickly.


“As the leading advocate for home ownership and housing issues, Realtors® want to help more home owners avoid foreclosure by facilitating a short sale when a family is absolutely unable to keep their home; however, that can only happen if lenders and servicers approve short sale offers in a reasonable amount of time,” said Phipps. “Streamlining short sales transactions will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close and reduce the overall number of foreclosures. This benefits sellers, lenders, buyers and the entire community.”


The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Saturday, April 2, 2011

New Year’s Resolution: Remodel the Bathroom?

From the House Values Home Essentials Newsletter of January, 2011: It’s no secret that bathrooms are a popular room to remodel—because of outdated features, different decorating taste from the previous owners or simply normal wear and tear on a very functional room of your home. If the New Year has you thinking about remodeling a bathroom, here are a few things to consider:

  • Timely or Timeless Style - Before you remodel, picture what it will look like in a couple years when you sell your home. Will you still enjoy that trendy sink? Make sure future buyers will, too. Otherwise they’ll factor in the cost of their own remodel when making an offer.

  • Costs—Good News - Right now many contractors are eager for work, and prices are lower for their materials and labor, so now may be an ideal time to make your bathroom more livable.

  • Resale Value - You may have heard during the housing boom that bath remodels add value to your home. These days you can recoup about 64% of the costs of a minor bathroom remodel, according to Remodeling magazine’s “2010-11 Cost vs. Value Report.” If your bathroom is especially in need of updates, you may recapture more.

  • Too Much? Think Small - If you’re not ready for a full remodel, then a fresh coat of paint, new towels and a pretty framed print can do wonders to update your bathroom—and give you a new look for 2011.

Remember: you and your family are the ones using your bathroom on a daily basis, so think about whether it makes you feel good when you brush your teeth every morning.


If you’d like more information about how a remodel can affect the value of your home, please don’t hesitate to call or email.

Tuesday, March 29, 2011

A B Trust rules are changing for 2011

The new laws signed in December, 2010 for tax relief and job creation contain many tid-bits for estate planning. Now each individual has a $5 million combined exemption for estate and gifts. There is also a new tax rate of 35% which applies to both. A married couple is allowed "portability" or the chance to share their $5 million each for a possible total exemption of $10 million. Whew - my head is spinning already! So glad I have a great estate tax attorney who can help me understand all these changes. Need a referral? Contact me and I would be happy to provide. Judy Clarke The Clarke Team Bay Area Real Estate 650-489-5399 sold@clarketeam.com

Friday, March 18, 2011

Understanding the tax treatment of cancelled mortgage debt

I read an excellent article today on the tax treatment of cancelled mortgage debt by an excellent Real Estate writer, Kenneth R. Harney.

In a nutshell, if debt is forgiven due to a short sale, foreclosure or loan modification, the lender sends the borrower a 1099C at the end of the year. If the debt was forgiven on your principal residence and you have only used the funds to purchase, build or improve your home, it's probably not taxable income. It would be taxable if you refinanced and pulled out money to buy a Tesla. Check out IRS Form 982 and Publication 4681 for more technical details.

The link to this great article is: http://articles.latimes.com/2011/mar/13/business/la-fi-harney-20110313

Enjoy! I have a great real estate attorney and C.P.A. to refer if you need more help. Just let me know.

Judy Clarke
The Clarke Team
Bay Area Real Estate
650-489-5399
sold@clarketeam.com

Tuesday, March 15, 2011

Clarification on Carbon Monoxide Detector Requirements

The Carbon Monoxide Poisoning Preventation Act of 2010 (Cal. Health & Safety Code Section 13260 et seq.) was signed into law in 2010. Existing single family dwellings are required to install carbon monoxide detectors on or before July 1, 2011. All other dwellings are required to install on or before January 1, 2013. Landlords must install these detectors for existing leased properties as well!

The detectors must be on the approved list of the State Fire Marshall. http://osfm.fire.ca.gov/licensinglistings/licenselisting_bml_searchcotest.php
Select 5276 Carbon Monoxide Alarms from the Category drop down box.

The detailed requirements are very complex - please see question and answers provided by the California Association of Realtors below.

California Association of Realtors
Carbon Monoxide Detectors
Dec. 1, 2010

Q 1. What is carbon monoxide?
A Carbon monoxide is a gas produced whenever any fuel, such as gas, oil, kerosene, wood, or charcoal, is burned. A person cannot see or smell carbon monoxide. However, at high levels carbon monoxide can kill a person in minutes.
In addition, there are well-documented chronic health effects of acute carbon monoxide poisoning from exposure to carbon monoxide, such as lethargy, headaches, concentration problems, amnesia, psychosis, Parkinson’s disease, memory impairment, and personality alterations. (Cal. Health & Safety Code § 13261.)

Q 2. Is there a new California law dealing with the issue of carbon monoxide poisoning?
A Yes. The Carbon Monoxide Poisoning Prevention Act of 2010 (Cal. Health & Safety Code §§ 13260 et seq.) was signed into law this year. It requires carbon monoxide detectors to be installed in every “dwelling unit intended for human occupancy.” The California legislature also modified both the TDS (for residential one-to-four unit real property) and MHTDS (for manufactured homes and mobile homes) to include a reference to carbon monoxide detector devices. See below for more details.

Q 3. What is a carbon monoxide detector?
A It is a relatively inexpensive device similar to a smoke detector that signals detection of carbon monoxide in the air. Under the law, a carbon monoxide device is “designed to detect carbon monoxide and produce a distinct audible alarm.” It can be battery powered, a plug-in device with battery backup, or a device installed as recommended by Standard 720 of the National Fire Protection Association that is either wired into the alternating current power line of the dwelling unit with a secondary battery backup or connected to a system via a panel. If the carbon monoxide device is combined with a smoke detector, it must emit an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning.
The carbon monoxide device must have been tested and certified pursuant to the requirements of the American National standards Institute (ANSI) and Underwriters Laboratories Inc. (UL) as set forth in either ANSI/UL 2034 or ANSI/UL 2075, or successor standards, by a nationally recognized testing laboratory listed in the directory of approved testing laboratories established by the Building Materials Listing Program of the Fire Engineering Division of the Office of the State Fire Marshal of the Department of Forestry and Fire Protection. (Cal. Health & Safety Code § 13262.)

Q 4. How does a homeowner comply with this law?
A Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.
The applicable time periods are as follows:
(1) For all existing single-family dwelling units on or before July 1, 2011.
(2) For all other existing dwelling units on or before Jan. 1, 2013.
(Cal. Health & Safety Code § 17926(a).)

Q 5. How many devices and where do I place them in the home?
A This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926 (b)). The following language comes packaged with carbon monoxide (CO) detectors:
For minimum security, a CO Alarm should be centrally located outside of each separate
sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents. Building standards applicable to new construction are as follows (overview summary only):
• Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom
(s) in dwelling units and on every level including basements within which fuel-fired
appliances are installed and in dwelling units that have attached garages.
• Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom
(s) in dwelling units and on every level including basements within which fuel-fired the American National standards Institute (ANSI) and Underwriters Laboratories Inc. (UL) as set forth in either ANSI/UL 2034 or ANSI/UL 2075, or successor standards, by a nationally recognized testing laboratory listed in the directory of approved testing laboratories established by the Building Materials Listing Program of the Fire Engineering Division of the Office of the State Fire Marshal of the Department of Forestry and Fire Protection. (Cal. Health & Safety Code § 13262.)

Q 4. How does a homeowner comply with this law?
A Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage. The applicable time periods are as follows:
(1) For all existing single-family dwelling units on or before July 1, 2011.
(2) For all other existing dwelling units on or before Jan. 1, 2013. (Cal. Health & Safety Code § 17926(a).)

Q 5. How many devices and where do I place them in the home?
A This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926 (b)).

The following language comes packaged with carbon monoxide (CO) detectors:
For minimum security, a CO Alarm should be centrally located outside of each separate
sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents. Building standards applicable to new construction are as follows (overview summary only):

• Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom
(s) in dwelling units and on every level including basements within which fuel-fired
appliances are installed and in dwelling units that have attached garages.

• Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom
(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

Q 6. Are there any penalties for noncompliance with this law regarding installation of carbon monoxide detector devices?
A Yes. A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first. If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

Q 7. Can a buyer of a “dwelling unit intended for human occupancy” rescind the sale if the dwelling doesn’t have the necessary carbon monoxide detectors?
A No. However, the buyer may be entitled to an award of actual damages not to exceed $100 plus court costs and attorney’s fees. (Cal. Health & Safety Code § 17926(d).) Note the following language in the TDS and MHTDS:
Installation of a listed appliance, device, or amenity is not a precondition of sale or transfer of the dwelling. The carbon monoxide device, garage door opener, or child-resistant pool barrier may not be in compliance with the safety standards relating to, respectively, carbon monoxide device standards of Chapter 8 (commencing with Section 13260) of Part 2 of Division 12 of, automatic reversing device standards of Chapter 12.5 (commencing with Section 19890) of Part 3 of Division 13 of, or the pool safety standards of Article 2.5 (commencing with Section 115920) of Chapter 5 of Part 10 of Division 104 of, the Health and Safety Code. Window security bars may not have quick-release mechanisms in compliance with the 1995 edition of the California Building Standards Code.

Q 8. Does a seller have any special carbon monoxide disclosure obligations?
A No. The only disclosure obligations are satisfied when providing a buyer with the TDS or the MHTDS. If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding carbon monoxide detector devices. (See Cal. Civ. Code §§ 1102.6, 1102.6d.) The Homeowners’ Guide to Environmental Hazards also will include information regarding carbon monoxide.

Q 9. May local municipalities require more stringent standards for carbon monoxide detectors?
A Yes (Cal. Health & Safety Code § 17926(e)).

Q 10. Do landlords have any special obligations regarding carbon monoxide detectors?
A Yes. All landlords of dwelling units must install carbon monoxide detectors as indicated in Question 4. The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].” The carbon monoxide device must be operable at the time that a tenant takes possession. However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device. The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.
(Cal. Health & Safety Code § 17926.1.)

Q 11. If the California Building Standards Commission adopts or updates building standards relating to carbon monoxide devices in the future, is the owner required to install the newer device?
A It depends. Yes, when the owner makes an application for a permit for alterations, repairs, or additions to that dwelling unit with the cost exceeding $1,000. (Cal. Health & Safety Code § 17926.2 (b).)

California Association of REALTORS®
Member Legal Services
525 South Virgil Ave.
Los Angeles, CA 90020
The information contained herein is believed accurate as of Dec. 1, 2010. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Written by Sonia M. Younglove, Esq. Copyright© 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R.Legal Department. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved.
Terms and Conditions Privacy Policy Permission to Reprint Site Map Copyright © 2011 CALIFORNIA ASSOCIATION OF REALTORS®

Judy Clarke
The Clarke Team
Bay Area Real Estate
650-489-5399
sold@clarketeam.com

Monday, March 14, 2011

Five signs that say “buy”

From The Wall Street Journal Weekend Investor, February 26, 2011

Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.

Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at http://www2.realtoractioncenter.com/site/R?i=OY4Sr8R-aTMAv3xZ7tqPOw... The data provided by the Bureau is approximately one month old and shows the direction of the local economy.

Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.

Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.

Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.

Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.

Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at http://www2.realtoractioncenter.com/site/R?i=OY4Sr8R-aTMAv3xZ7tqPOw... The data provided by the Bureau is approximately one month old and shows the direction of the local economy.

Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.

Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.

Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.

Judy Clarke
The Clarke Team
650-489-5399
sold@clarketeam.com

Wednesday, March 2, 2011

Experian will report on rental payments

This is great news for renters - especially those renters trying to rebuild their credit history after losing a home to foreclosure! Experian recently purchased Rent Bureau, hence the change. Ask your landlord to report your rent payments to help get your credit score back to where it should be. Don't give up - you can purchase a home again with time and patience.

From the Experian Website:

Dear Experian,

Can an apartment put your rent on your credit report as an installment payment like they do with a car payment?
- YES

Dear YES, You can’t report your own rent payments, but that doesn’t mean your rent payments can’t help you build a credit history.

Experian recently acquired Rent Bureau, one of that nation’s largest rent payment reporting companies and has begun including rent payment in Experian consumer credit reports.

In the past, only negative rent payment history would appear in your credit report, for example evictions or civil judgments for unpaid rent. That meant poor rent payment history could hurt your credit report, but positive rent payment couldn’t help.

Adding positive rent payment history enables you to build a new or stronger credit history simply by paying your rent or lease on time. Experian believes that consumers who have little or no credit history, or who are trying to recover from a difficult financial situation, will benefit greatly.

It can be difficult for people with no credit history to qualify for traditional credit lines. Incorporating rent payments in the credit report will give lenders additional information upon which to base a decision, opening the door to credit for many who would otherwise be unable to qualify without a cosigner.

Thanks for asking.
- The "Ask Experian" team

Sunday, February 27, 2011

Market Watch - 02.11.11 - SF Peninsula

From my boss, Rick Turley of CB:

SF Peninsula — The spring buyers are out and ready to buy when they can locate the right inventory, our Burlingame managers report. We are routinely seeing multiple offers on well-priced homes under $1 mill. Open house activity has increased with as many as 100 people through one open house. Buyers are more positive and sellers more flexible on price.

Across the hills in Half Moon Bay, there seems to be two extremes in the market – the very low end selling quickly or the upper end second home, all cash, selling quickly.

Our Menlo Park offices report that they are definitely seeing a stronger high-end market in that community. Buyers are not afraid to spend $2.5 million for a house anymore. The inventory is slowly increasing, our Redwood City office says. Buyers are taking their time before making a decision. Agents are working with both buyers and sellers for longer periods of time. Overall attitude seems to be positive.

The Palo Alto market is extremely tight in inventory. The $2.5 million price range is strong and getting multiple offers. One example: a Palo Alto listing at $2,195,000 had 118 groups through open house, 14 packets are out, offers on Wednesday.

Our San Mateo offices say open houses are still very well attended, although many buyers still on the fence.

Finally in Woodside, our local manager says sales activity and inventory have dipped. Still a lot of interest, but no action.

Tuesday, February 22, 2011

Housing’s Role in the Road to Recovery

By Brian Summerfield, Online Editor, REALTOR® Magazine

The National Association of REALTORS® took out a full-page ad in this past Sunday’s edition of the Washington Post to get across a simple but important message: Housing creates jobs, which America needs for a genuine, complete recovery. Indeed, much of the positive economic news that’s come out recently — even in real estate — has been tempered by the enduring high levels of unemployment. Although those figures have improved incrementally over the past couple of months, the unemployment rate is still more than 9 percent, well above historic norms, and when people who have stopped looking for jobs are factored in, it’s much higher.

The aim of NAR’s ad was to advise policymakers and Congress, in advance of the release of President Obama’s Fiscal Year 2012 budget today, that certain changes to the mortgage interest deduction or government involvement in the secondary mortgage market — however well-intended — could have disastrous consequences for the economy. Conversely, by supporting policies that foster home ownership and purchases, they can help create the necessary conditions for a turnaround.

(Note: There is a provision in the 2012 budget that would limit the value of all itemized deductions, including the mortgage interest deduction, to 28 percent for taxpayers in higher brackets — households earning more than $250,000. The proposal is similar to a provision included in last year’s budget proposal, which was rejected by Congress.)

In fact, according to NAR, for every two new houses sold, a job is created. This argument rests on measuring gross domestic product (GDP) as the sum of all income. NAR estimates that each existing-home sale at the median price creates $30,792 because of commissions, fees, moving expenses, furniture, and a “multiplier effect” due to reinvestment of capital from a home sale into the economy. For a new-home sale, nearly $28,000 more is added to that because of spending on materials and labor for construction.

So, let’s say you add two new-home sales together. That adds $117,058 to the economy. Now, divide U.S. GDP by the number of payroll workers, and you get approximately $113,000. (NAR acknowledges this is an overestimation of salary income since income can be earned from profits, rents, and other sources, but does provide a ceiling to earnings per worker.) In other words, these two transactions pump enough money into the economy to pay another worker. And if you substitute average earnings — about $57,000 — for the GDP-divided-by-payroll-workers formula, that jumps up to two jobs.

Now, this is all theoretical, but there’s no denying that just a few transactions can have a significant economic impact on localities — with respect to people’s livelihoods, home values, and viability of communities. The housing sector won’t be the only thing to restore the vitality of American economy, but it will play an important part.

Learn more about why home ownership matters for economic recovery.

Saturday, February 5, 2011

California home sales, median price rise in December

From the California Association of Realtors February Newsline:

California home sales rose in December, posting their highest level since May, according to data from C.A.R. The statewide median price increased from November, but was down from a year ago.

“December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce. “Most of December’s sales opened escrow in October and November. Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 in December. December’s sales were up 5.9 percent from November’s revised pace of 491,590 but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.

Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.

“While sales rose in December, the sales pace in the second half of the year was lower than the first half as the housing market weaned itself off home buyer tax credits,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “For 2010 as a whole, sales reached 494,900 homes sold, down 9.5 percent from the 546,860 homes sold in 2009. However, the statewide median price increased 10.2 percent to reach $302,900 for the year, up from the $275,000 recorded in 2009,” she said.

Here are other highlights of C.A.R.’s resale housing report for December 2010:
A greater than usual drop in listings combined with the sales increase caused C.A.R.’s Unsold Inventory Index to decline more than one month. The Unsold Inventory Index for existing, single-family detached homes was 5.0 months in December, down from 6.2 months in November. The index was 3.8 months in December 2009. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 4.71 percent during December 2010, compared with 4.93 percent in December 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.31 percent in December 2010, compared with 4.31 percent in December 2009.

The median number of days it took to sell a single-family home was 57.5 days in December 2010, compared with 35.1 days for the same period a year ago.

Regional MLS sales and price information are contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 97 of the 329 cities and communities reporting showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for November may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. online at http://www.car.org/marketdata/historicalprices/2010medianprices/dec2010/.

Statewide, the 10 cities with the highest median home prices in California during December 2010 were: Beverly Hills, $2,180,000; Los Altos, $1,300,000; Calabasas, $1,175,000; Laguna Beach, $1,105,000; Manhattan Beach, $1,085,500; Newport Beach, $1,000,000; Santa Monica, $921,000; Cupertino, $904,500; Rancho Palos Verdes, $849,000; Los Gatos, $840,000.

Statewide, the cities with the greatest median home price increases in December 2010 compared with the same period a year ago were: Beverly Hills, 54.3 percent; Calabasas, 39.1 percent; Poway, 25.5 percent; Ridgecrest, 23.3 percent; San Juan Capistrano, 19.2 percent; Compton, 17.5 percent; Laguna Hills, 15.7 percent; Santa Cruz, 14.1 percent; Gilroy, 14.1 percent; La Habra, 13.2 percent.

Friday, January 28, 2011

FBI investigates courthouse auction bids

The FBI is investigating whether some real estate speculators are illegally rigging bids for foreclosure auctions. Bid-rigging violates the Sherman Antitrust Act and can carry a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine can be increased to twice the violator’s gain or twice the victim’s loss.

The FBI has been conducting interviews and executing search warrants throughout the San Francisco Bay Area to investigate whether some auction participants allegedly pay others to refrain from bidding on certain properties to keep their prices lows.

The FBI encourages anyone with knowledge of anti-competitive practices at foreclosure auctions to call its tip line at (415) 553-7400.

Friday, January 21, 2011

CalHFA mortgage aid program for jobless begins

CalHFA mortgage aid program for jobless begins - follow the link to an article written on January 9, 2011 by Kathleen Pender of the SF Chronicle:


http://articles.sfgate.com/2011-01-09/business/27018642_1_servicers-mortgage-aid-calhfa

Friday, January 14, 2011

Carbon Monoxide Detectors

The new California law regulating the installation of carbon monoxide detectors is very confusing. The following question and answer style article was written by the California Association of Realtors Legal Department. I have removed most references to websites and phone numbers that require membership to access. We will post clarifications on this law as available.

C.A.R. Member Legal Services Dec. 1, 2010 Carbon Monoxide Detectors

Q 1. What is carbon monoxide?

A Carbon monoxide is a gas produced whenever any fuel, such as gas, oil, kerosene, wood, or charcoal, is burned. A person cannot see or smell carbon monoxide. However, at high levels carbon monoxide can kill a person in minutes.
In addition, there are well-documented chronic health effects of acute carbon monoxide poisoning from exposure to carbon monoxide, such as lethargy, headaches, concentration problems, amnesia, psychosis, Parkinson’s disease, memory impairment, and personality alterations. (Cal. Health & Safety Code § 13261.)

Q 2. Is there a new California law dealing with the issue of carbon monoxide poisoning?

A Yes. The Carbon Monoxide Poisoning Prevention Act of 2010 (Cal. Health & Safety Code §§ 13260 et seq.) was signed into law this year. It requires carbon monoxide detectors to be installed in every “dwelling unit intended for human occupancy.” The California legislature also modified both the TDS (for residential one-to-four unit real property) and MHTDS (for manufactured homes and mobilehomes) to include a reference to carbon monoxide detector devices. See below for more details.

Q 3. What is a carbon monoxide detector?

A It is a relatively inexpensive device similar to a smoke detector that signals detection of carbon monoxide in the air. Under the law, a carbon monoxide device is “designed to detect carbon monoxide and produce a distinct audible alarm.” It can be battery powered, a plug-in device with battery backup, or a device installed as recommended by Standard 720 of the National Fire Protection Association that is either wired into the alternating current power line of the dwelling unit with a secondary battery backup or connected to a system via a panel.

If the carbon monoxide device is combined with a smoke detector, it must emit an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning.The carbon monoxide device must have been tested and certified pursuant to the requirements of the American National standards Institute (ANSI) and Underwriters Laboratories Inc. (UL) as set forth in either ANSI/UL 2034 or ANSI/UL 2075, or successor standards, by a nationally recognized testing laboratory listed in the directory of approved testing laboratories established by the Building Materials Listing Program of the Fire Engineering Division of the Office of the State Fire Marshal of the Department of Forestry and Fire Protection.(Cal. Health & Safety Code § 13262.)

Q 4. How does a homeowner comply with this law?

A Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.The applicable time periods are as follows:
(1) For all existing single-family dwelling units on or before July 1, 2011.
(2) For all other existing dwelling units on or before Jan. 1, 2013.
(Cal. Health & Safety Code § 17926(a).)

Q 5. How many devices and where do I place them in the home?

A This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926(b)).The following language comes packaged with carbon monoxide (CO) detectors:
For minimum security, a CO Alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.
Building standards applicable to new construction are as follows (overview summary only):
• Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.
• Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):
Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

Q 6. Are there any penalties for noncompliance with this law regarding installation of carbon monoxide detector devices?

A Yes. A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first. If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

Q 7. Can a buyer of a “dwelling unit intended for human occupancy” rescind the sale if the dwelling doesn’t have the necessary carbon monoxide detectors?

A No. However, the buyer may be entitled to an award of actual damages not to exceed $100 plus court costs and attorney’s fees. (Cal. Health & Safety Code § 17926(d).)Note the following language in the TDS and MHTDS:

Installation of a listed appliance, device, or amenity is not a precondition of sale or transfer of the dwelling. The carbon monoxide device, garage door opener, or child-resistant pool barrier may not be in compliance with the safety standards relating to, respectively, carbon monoxide device standards of Chapter 8 (commencing with Section 13260) of Part 2 of Division 12 of, automatic reversing device standards of Chapter 12.5 (commencing with Section 19890) of Part 3 of Division 13 of, or the pool safety standards of Article 2.5 (commencing with Section 115920) of Chapter 5 of Part 10 of Division 104 of, the Health and Safety Code. Window security bars may not have quick-release mechanisms in compliance with the 1995 edition of the California Building Standards Code.


Q 8. Does a seller have any special carbon monoxide disclosure obligations?

A No. The only disclosure obligations are satisfied when providing a buyer with the TDS or the MHTDS. If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding carbon monoxide detector devices. (See Cal. Civ. Code §§ 1102.6, 1102.6d.)The Homeowners’ Guide to Environmental Hazards also will include information regarding carbon monoxide.

Q 9. May local municipalities require more stringent standards for carbon monoxide detectors?

A Yes (Cal. Health & Safety Code § 17926(e)).

Q 10. Do landlords have any special obligations regarding carbon monoxide detectors?

A Yes. All landlords of dwelling units must install carbon monoxide detectors as indicated in Question 4. The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].”The carbon monoxide device must be operable at the time that a tenant takes possession. However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device. The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.(Cal. Health & Safety Code § 17926.1.)

Q 11. If the California Building Standards Commission adopts or updates building standards relating to carbon monoxide devices in the future, is the owner required to install the newer device?

A It depends. Yes, when the owner makes an application for a permit for alterations, repairs, or additions to that dwelling unit with the cost exceeding $1,000. (Cal. Health & Safety Code § 17926.2(b).)

Q 12. Where can I obtain additional information?

A This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.'s legal products and services, please visit car.org.
Readers who require specific advice should consult an attorney.