In light of the recent legislation, we’re fully equipped to embrace the new requirements with ease. Here's how we've prepared for the changes:

New Legislative Requirements: Assembly Bill 968 went into effect on July 1, 2024. It mandates that sellers of single-family residential properties provide comprehensive disclosures if they accept an offer within 18 months of acquiring the title. Sellers must now inform potential buyers about any recent property modifications, including room additions, structural changes, and repairs. This disclosure will include the contractor's details and all associated permits. Should the seller lack the permits due to third-party contractor involvement, the buyer will be redirected to obtain them from the contractor.

Our Title Team's Preparedness: We've proactively established protocols to navigate any recent property improvements, because our team already take steps to review whether a listed property has undergone recent construction. Our approach ensures the resolution of any mechanic's liens, safeguarding the buyer's interests.

Our Proactive Procedure: What's our strategy for recent property improvements? We've instituted a policy requiring sellers to complete an Owner’s Property Statement, alerting us to any recent enhancements. This crucial step allows us to effectively manage any associated risks. Depending on the situation, we may request proof of payment, lien waivers, a mechanic's lien indemnity signed by the seller.

Looking Ahead: With the new law recently taking effect on July 1, 2024, we anticipate questions and are prepared to address them. Our team of title experts stands ready to facilitate your title transactions, minimizing any buyer apprehensions related to the updated disclosure obligations. Trust in our established procedures to guide you smoothly through this transition.

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This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice.