BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 652
                                                                  Page  1


          SENATE THIRD READING
          SB 652 (DeSaulnier)
          As Amended July 2, 2013
          Majority vote 

           SENATE VOTE  :36-0  
           
           JUDICIARY           10-0                                        
           
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          |Ayes:|Wieckowski, Wagner,       |     |                          |
          |     |Alejo, Chau, Dickinson,   |     |                          |
          |     |Garcia, Gorell,           |     |                          |
          |     |Maienschein, Muratsuchi,  |     |                          |
          |     |Stone                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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          SUMMARY  :  Improves real estate disclosures.  Specifically,  this  
          bill  requires the seller of any real property to disclose to a  
          potential buyer specified claims regarding construction  
          disputes.

           FISCAL EFFECT  :  None
           
          COMMENTS  :  The author states, "Current law requires a homeowner  
          to follow a mandatory procedure (pursuant to SB 800) prior to  
          filing a construction defect lawsuit.  SB 800 provided a  
          pre-litigation procedure in which a homeowner must present a  
          notice of claimed defects to a builder, who is then given the  
          opportunity to correct the defect.  If the builder fails to  
          repair the defect, or the homeowner is dissatisfied with the  
          repairs, the homeowner may proceed with the filing of a lawsuit.  
           While SB 800 was intended to relieve builders from rampant  
          litigation and to simplify repair procedures for consumers, it  
          has resulted in the unintended consequence that a subsequent  
          purchaser of the property may be unaware that the original  
          homeowner has made defect claims against the builder's warranty.  
           As such, this bill looks to address this lack of disclosure by  
          requiring a homeowner to, when selling the property, disclose  
          any construction defect claim and the resolution status of that  
          claim.  From a consumer perspective, a potential buyer should be  
          aware of the nature of these defect claims and whether or not  
          that defect has subsequently been repaired."








                                                                  SB 652
                                                                  Page  2



          This measure seeks to provide prospective purchasers with  
          potentially helpful additional information regarding claims  
          filed under the SB 800 (Burton), Chapter 722, Statutes of 2002,  
          pre-litigation process that are not expressly covered by the  
          existing disclosure form related to litigation.


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334 


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