October 16, 2012
Assembly Bill 2303 has been signed by Governor Brown. CLTA sponsored amendments to the bill in the Senate on August 6th. The amendments added title insurers and underwritten title companies to a list of escrow service providers for the purpose of complying with the notice requirement to tenants in Civil Code 1946.1. That Civil Code section governs notice to residential tenants prior to the termination of their tenancy under certain circumstances, one of which is a pending sale for which an escrow has been opened. The bill makes it clear that the escrow requirement is satisfied by an escrow established with a title insurer or an underwritten title company, in addition to an escrow company or real estate broker.
The California Association of Realtors have been notified of the change and will soon be modifying their forms accordingly.