BILL NUMBER: AB 331	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Hall
    (   Coauthors:   Assembly Members 
 Fuentes,   Gilmore,   and Portantino 
 ) 

                        FEBRUARY 18, 2009

   An act to add Section 1940.95 to the Civil Code, relating to real
property.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 331, as amended, Hall. Hiring of real property.
   Existing law contains various provisions regulating the hiring of
real property, as specified.
   This bill would require the landlord, at the time of the execution
of the rental agreement of a single-family dwelling unit, to
disclose in writing if the property is subject to any outstanding
notice of default, pending suit to foreclose a mortgage, pending
declaration of forfeiture, or any pending proceeding to foreclose a
tax lien, as specified. This bill would allow the tenant to recover
twice the actual damages or twice the monthly rent, whichever is
greater, and all prepaid rent, if the tenancy terminates, as
provided.  This bill would also provide that a property
manager shall not be liable under these provisions if he or she had
no knowledge, as provided. 
   The provisions of this bill would not apply to premises managed by
a court appointed receiver.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1940.95 is added to the Civil Code, to read:
   1940.95.  (a) If at the time of the execution of a rental
agreement of a single-family dwelling unit the premises are subject
to any of the following circumstances, the landlord shall disclose
that circumstance to the tenant in writing before the execution of
the rental agreement:
   (1) Any outstanding notice of default under a trust deed,
mortgage, or contract of sale, or notice of trustee's sale under a
trust deed.
   (2) Any pending suit to foreclose a mortgage, trust deed, or
vendor's lien under a contract of sale.
   (3) Any pending declaration of forfeiture or suit for specific
performance of a contract of sale.
   (4) Any pending proceeding to foreclose a tax lien.
   (b) If the tenancy terminates as a result of a circumstance that
the landlord failed to disclose as required by subdivision (a), the
tenant may recover  from the landlord  twice the actual
damages or twice the monthly rent, whichever is greater, and all
prepaid rent, in addition to any other remedy that the law may
provide.
   (c) This section shall not apply to premises managed by a court
appointed receiver. 
   (d) A property manager shall not be liable for damages under this
section if the property manager had no knowledge of the circumstances
that gave rise to a duty to disclose under subdivision (a).