Bill Text: CA AB1333 | 2023-2024 | Regular Session | Amended
Bill Title: Residential real property: bundled sales.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed) 2024-05-01 - Referred to Com. on JUD. [AB1333 Detail]
Download: California-2023-AB1333-Amended.html
|
Amended
IN
Assembly
January 03, 2024 |
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Amended
IN
Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1333
| Introduced by Assembly Member Ward |
February 16, 2023 |
An act to add Section 2924q to the Civil Code, relating to real property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1333, as amended, Ward.
Residential real property: bundled sales.
Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power. Existing law, until January 1, 2031, for purposes of the exercise of a power of sale, prohibits a trustee from bundling properties for the purpose of sale, instead requiring each property to be bid on separately, unless the deed of trust or mortgage provides otherwise. Existing law also prohibits specified institutions that, during their immediately preceding annual reporting period, as established with their primary regulator, foreclosed on 175 or more residential real properties, containing no more than 4 dwelling units, from conducting a sale of 2 or more parcels of real property containing one to 4 residential dwelling units, inclusive, at least 2 of which have been acquired through
foreclosure under a mortgage or deed of trust.
This bill would prohibit a developer of residential one to 4 dwelling units, inclusive, from conducting a sale of 2 or more parcels of real property containing one to 4 residential dwelling units, inclusive, in a single transaction to an institutional investor, as defined, if the occupancy permit was issued on or after January 1, 2024. 2025.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 2924q is added to the Civil Code, to read:2924q.
(a) For purposes of this section,(1) “Bundled sale” means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive.
inclusive, in a single transaction.
(2) (A) “Institutional investor” means an investor, with portfolios containing more than 1,000 units, that is not a natural person and is an entity including, but not limited to, a limited liability company, limited liability partnership, or real estate investment trust.
(B) “Real estate investment trust” means a publicly traded limited liability company, limited liability partnership, or other entity that may have multiple affiliated or linked entities serving as a subsidiary or parent company.
(b) Notwithstanding any other law, a developer of residential one to four dwelling units, inclusive,
shall not conduct a bundled sale
to an institutional investor if the occupancy permit was issued on or after January 1, 2024.
2025.
