Page 7 - Los Angeles Vol 5 No 2
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NORMA J. WILLIAMS, ESQ. | Real Estate Law
2019 California Laws Affecting Commercial
Real Property
Several laws a ecting commer- cial real estate passed by the California legislature in 2018 (or earlier) became e ective Jan. 1, 2019, or will become e ective later this year.
 ree-Day Notices/Responses to Summons. In a change a ecting evic- tions (residential and commercial), e ective Sept. 1, 2019, the three days within which a tenant must cure a lease default and the  ve days within which a tenant must respond to a summons in an unlawful detainer ac- tion will exclude Saturdays, Sundays and other judicially observed holi- days. Current law allows three and  ve calendar days, respectively.
Notice of Belief of Abandonment- Commercial Property. New law per- mits commercial landlords to give a notice of belief of abandonment when rent has been unpaid for at least the number of days required for the land- lord to declare a rent default under the lease. Previously, notice could be giv- en a er rent had been unpaid for 14 consecutive days. Also, under the new law, overnight courier is a permitted method of serving the notice.  e landlord must have a reasonable be- lief the property has been abandoned and lease termination continues to be 15 days a er notice is given.  ere is a new statutory form for notice of belief of abandonment.
Disposition of Personal Property Le  on Commercial Property.  e threshold value of personal property that triggers a commercial landlord’s obligation to auction o  the property when a tenant vacates leased prem- ises has been increased to the greater of $2,500 or one month’s rent for the premises.  e prior amounts ($750
or $1 per square foot of the premises) were deemed to impose an undue hardship on commercial landlords.
Extension of Building Permits. Cali- fornia law has extended the period a building permit for construction of residential occupancies remains ef- fective (six months to 12) and is not deemed expired because work un- der the permit had not commenced or the permittee had abandoned the work. During that 12-month period, the permit is exempt from new local ordinances that modify the build- ing standards in e ect at the time the permit was issued.  e new law also authorizes building o cials, for justi-  able cause, to grant one or more ex- tensions for not more than 180 days per extension.
Expanded Requirements for De - brillators. E ective Jan. 1, 2020, an automated external de brillator will be required in certain occupied com- mercial buildings constructed prior to Jan. 1, 2017, and that are modi ed, renovated or tenant improved a er Jan. 1, 2020. Current law imposes the requirement on structures con- structed a er Jan. 1, 2017. A building is considered modi ed, renovated or tenant improved if $100,000 of tenant improvements or building renova- tions are made in one calendar year or any amount of tenant improvements are made to places of assembly such as auditoriums and movie theaters.
Changes to Civil Code Section 1542. In a change stated to be declaratory of existing law, Civil Code Section 1542, a waiver of which is contained in many transactional documents, was amended to provide that the provi- sions regarding the release of claims apply to a releasing party as well as to
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a creditor and a released party as well as to a debtor.
Energy Use Disclosure.  e 2015 energy use benchmarking and public disclosure law and the implementing regulations adopted in 2018 require owners of buildings with 17 or more residential units to open an Energy Star account and to request energy use information from their utility company by March 1, 2019, and to re- port the information provided by the utility to the California Energy Com- mission by June 1, 2019, and each June 1 therea er.
Water-Compliant Fixtures; Disclo- sure. Pursuant to legislation passed in 2013, Jan. 1, 2019, was the deadline for the replacement of non-compliant water-conserving plumbing  xtures in commercial and multifamily prop- erties built and available for use or oc- cupancy before Jan. 1, 1994.  e stat- ute de nes non-compliant  xtures.  e law permits owner/landlords, upon notice, to enter premises to in- spect and maintain such  xtures and obligates tenants, a er Jan. 1, 2019, to notify landlords if such  xtures do not meet manufacturer speci cations. Also, beginning Jan. 1, 2019, a seller of a commercial or multifamily prop- erty must disclose the compliant  x- tures requirement to prospective buy- ers and disclose whether the property contains any noncompliant plumbing  xtures.
Disclaimer: Nothing in this article shall be construed as giving legal
advice. Practitioners are
advised to consult with
their individual legal ad- visers as to the legal e ect of any item described in this article.
Norma J. Williams is a commercial real estate attorney whose practice focuses on  nancing, purchase and sale and leasing transactions for of ce, industrial, retail, multifamily and other commercial real estate. She is a frequent speaker, has authored major real estate legislation and has held leadership positions in local, state and national real estate bar associations. Ms. Williams received her bachelor’s degree magna cum laude from Wesleyan University and her law degree from University of California, Berkeley. For more information, email [email protected] or call (213) 996-8464.
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