BILL ANALYSIS �
SB 652
Page 1
SENATE THIRD READING
SB 652 (DeSaulnier)
As Amended August 26, 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 : Current law requires a homeowner to follow a
mandatory procedure (pursuant to SB 800 (Burton), Chapter 722,
Statutes of 2002) 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 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 made by the
seller, 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 by the seller under the SB 800 pre-litigation process, and
related claims by the seller, that are not expressly covered by
the existing disclosure form related to litigation.
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0001947