REE ch27 covered loans and HOA

What is a county tax assessor prohibited from doing regarding subdivisions?

A county tax assessor is prohibited from assigning personal numbers or preparing a separate assessment or separate valuation to divide any existing residential structure into a subdivision, until the subdivision final or parcel that has been recorded as required by law.

When must a broker who arranges the purchase of a fractionalized interest record it?

A real estate broker who arranges the purchase of a fractionized interest in a deed of trust must record it within 10 days of the purchase.

Mobilehome Residency Law (MRL)

A rental agreement must not include any provision that offers the management of a mobile home park the first right of refusal.

Regulations for assessments

Annual increases in regular assessments may not be imposed, except with a specific provision or a quorum. The board must not impose a regular assessment that is more than 20% of the preceding one. The board must not impose a special assessment that will be more than 5% of the budget expenses, unless there is a quorum affirmative vote of the owners. The board does not limit assessment increases that are necessary for emergency situations.

Major components

Components with an estimated remaining useful life of more than 30 years may be included in a study as a capital asset or disregarded from the reserve calculation.

How do general laws limit ad valorem taxes?

Generally limit ad valorem taxes on real property to 1% of the full cash value of that property.

If the board approves the decision to initiate foreclosure made by a majority vote, what must happen?

If the board approves the decision to initiate foreclosure, made by the majority vote, this vote to approve the lien foreclosure must be completed a minimum of 30 days before any public sale.

Bankruptcy abuse prevention and consumer act. Exemptions from the automatic stay law:

If the lessor took the action to obtain possession of the property before the date the Lessor/debtor's bankruptcy petition was filed, the previously filed proceeding taken by the leaser Will remain in effect. The landlord may legally evict the lessee and take possession of the property, based on some type of endangerment on the property or on the illegal use of controlled substances on the property

Davis-Stirling Common Interest Development Act

Pertains to condominium projects, community apartment projects, stock cooperatives, and planned developments. The homeowners association of a common interest development must make all association records available to any owner who belongs to the HOA.

Finance code section 4970

Points and fees: items required to be disclosed as finance charges, not including interest; all compensation paid to mortgage brokers in connection with the loan transaction. Consumer loan: consumer credit transaction secured by real property located in California, which is used as the principal dwelling as a consumer. Original principal balance: the total initial amount the consumer is obligated to repay on the loan.

Proposed physical changes to a CID

Proposed physical changes must be consistent with any governing provision of law, including the fair employment and housing act. Nothing under this law authorizes any type of physical change to a common area that is inconsistent with the associations governing documents, unless the change is required by law.

Unruh Civil Rights Act

Protects people from being discriminated against because if their sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status and sexual orientation.

Registered domestic partner's

Registered domestic partners are allowed to transfer property to each other without having to have the property reassessed and taxed at the current market value.

What is considered the debt of the owner?

Regular or special assessments; late charges; reasonable collection cost/attorneys fees and interest.

Covered loans are consumer loans in which :

The original principal loan balance does not exceed the most current loan limit for a single-family first mortgage. Mortgages/deeds of trust - the APR must be more than 8% over the yield on treasury securities with comparable periods of maturity. The total points and fees payable by the consumer must be higher than 6% of the total loan amount.

Notice of lien

The owner must be notified in writing, via certified mail, at least 30 days before lien is recorded.

What must a notice of intention include?

The owners and subdividers name and address; the legal description an area of lands; copies of contracts to be used; any provisions that have already been made for public utilities in a proposed subdivision; and the location of all existing airports located within 2 statute miles of the subdivision.

What do local governments use a density bonus to incentivize?

The production of lower income housing units.

What is necessary in order to withdraw money from the associations reserve accounts?

The signatures of a minimum of two people are necessary. May temporarily transfer funds from the reserve fund into the general operating fund of the association, if necessary to make short term cash flow needs or other expenses. At least once every three years, the Board of Directors must have an inspection conducted, which must identify an estimate the cost of the major components that the association is obligated to maintain that have a remaining useful life of less than 30 years.

Estimated Remaining Useful Life

The time reasonably calculated to remain before a major component will require replacement.

What are the Davis Stirling common interest development act requirements for association records?

They must be made available to members from the previous two fiscal years. The current association records must be made available within 10 business days of receipt for the members request. Minutes of member and board meetings must be made permanently available. In order to grant the exclusive use of a common area to an owner, there must be a passing affirmative vote of 67% of the owners in the CID. Elections are inspected by an independent third-party, which may not be a candidate for or a member of the Board of Directors; or a person employed to the CID association.

What happens if an air-conditioning or heating duct shows a 15% or higher leakage?

They must be repaired.

What must a person authorized to record a notice of default or sale do?

They must within 10 business days, deposit in the US mail an envelope to be sent with postage prepared.

What is the real estate fraud prosecution trust fund used for?

This money must only be used in connection with investigations involving recorded real estate documents.

When is a restrictive covenant modification document filed?

When a person believes that their property has been placed under an unlawful restriction.

Delinquent assessments

When an association of a CID seeks to collect delinquent assessments that are less than $1800 it may not foreclose on the lien. An association is not permitted to foreclose on this lien until the amount equals or exceeds 1800, or until the assessments are more than 12 months delinquent.