Usually among the first to know about the new laws in the industry, Realtors keep abreast of changes in legislation through their local, state and national professional trade associations and are a good source for questions or more information. Paul Cardus, public affairs director for Silicon Valley Association of Realtors, has been busy informing Realtors and affiliate members about new laws through the association's weekly newsletter.

One of the newest disclosures requires sellers of residential property to give prospective buyers information about supplemental tax bills they will need to pay. Although change of ownership triggers reassessment of property taxes, buyers may not realize that they may have to pay supplemental tax bills. As the result of the passage of AB459, sellers of most residential properties up to four units, or their agents, are required to disclose to prospective buyers that they may owe supplemental taxes.

According to attorney D. Kent Westerberg, the new law is intended to prevent new home buyers from being surprised when they receive supplemental property tax bills that many lenders will not pay through impound accounts.

A new law benefiting domestic partners goes into affect beginning with the lien date for fiscal year 2006-07. Previously, the transfer of property from one partner to another resulted in significant increases in tax burdens as a result of tax reassessments. As a result of the new law, any property transfer between registered domestic partners will not trigger property tax reassessment. SB565 ensures registered domestic partners will be treated the same as spouses under California property tax laws.

Although no one likes to acknowledge that methamphetamine-contaminated properties might be in the neighborhood, a new law requires a disclosure if there has been contamination of a property. Methamphetamine labs are extremely dangerous and can have serious long-term effects on the homes and properties where they are located. Effective Jan. 1, a property owner must disclose in writing to a prospective buyer or tenant if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by methamphetamine lab activity. The owner must also give a copy of the pending order to the buyer or tenant to acknowledge receipt in writing.

Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000. Aside from disclosure requirements, this new law also establishes procedures for local authorities to deal with methamphetamine-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs.

Landlords and tenants need to be aware of a new law regarding termination notices. Starting Jan. 1, landlords are required to give a 30-day notice to terminate their month-to-month tenants (unless the property is rent-controlled or subsidized housing rules apply). Prior law requiring a 60-day notice of termination of tenancy expired at the end of 2005.

Another disclosure law that affects neighborhoods involves Megan's Law. The database disclosure law has been revised to reference the new Megan's Law website, which provides online information about registered sex offenders. For the first time, sellers or their agents may use either the existing or revised disclosure language. However, starting April 1, the revised disclosure language will be mandatory for residential sellers of up to four units, as well as for residential landlords.

If a dispute arises, it's good to know that there has been an increase in the amount people can sue for in small claims court. Starting Jan. 1, the maximum monetary claim an individual person may bring into small claims court has been increased from $5,000 to $7,500. Legal entities other than natural persons (e.g., corporations, partnerships or governmental entities) do not qualify for this jurisdictional increase.

Realtor Dennis Byron says the laws that most affect him and his clients are those pertaining to tax events. He is very concerned about the discussions centered around reducing the interest deductions on real estate.

"What this would do to the economy, and California's economy in particular, is to bring it to a screeching halt. One of the only reasons most people can afford the housing in this area is that they get to deduct their interest cost on their primary residence," Byron said. "By reducing this amount, people would be forced to sell their homes, putting a massive amount of inventory on the market, with no one that could afford to buy it. Prices would drop drastically. One economist said it would take the United States into a 15-year recession."