Two New Disclosure Requirements for California Real Estate Transactions Take Effect July 1, 2013

California Civil Code Section 1938 requires that leases for ALL commercial properties entered into on or after July 1, 2013 state whether the subject premises has been inspected by a “Certified Access Specialist” and if so, whether the property has or has not been determined to meet all applicable construction related accessibility standards pursuant to California Civil Code Section 55.53.

California Civil Code Section 55.53, et seq., addresses the role of the Certified Access Specialist, including the preparation of a written assessment of whether the assessed site meets all applicable construction-related accessibility standards or if corrective actions are required. Such assessment will hopefully curtail construction related accessibility lawsuits (including claims alleging violations of the Americans with Disabilities Act) as such written assessments would serve as evidence of compliance (or non-compliance) with applicable accessibility laws.

Also going into effect July 1, 2013 are the Nonresidential Building Energy Use requirements set forth in California Public Resources Code Section 25402.10 which require all owners who are going to sell, lease, or finance “Nonresidential Buildings” which are 50,000 square feet or more located in California to disclose the property's energy use data for the most recent 12 months. Similar disclosure requirements for smaller properties will take effect in 2014.

We suggest that customized lease forms be revised before July 1, 2013, to add the new disclosure requirements for the Certified Access Specialist Inspection and, if applicable, Nonresidential Building Energy Use.

For more information, please contact the author of this alert, Jason E. Grinnell, Senior Counsel, at 213-457-1761 or jgrinnell@dykema.com, any of the Real Estate attorneys listed to the left or your Dykema relationship attorney. 

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