Today's Law As Amended


Bill PDF |Add To My Favorites |Track Bill | print page

AB-1333 Single-family dwelling units: bundled sales.(2023-2024)



As Amends the Law Today


SECTION 1.

 Section 1048 is added to the Civil Code, to read:

1048.
 (a) For purposes of this section, the following definitions apply:
(1) “Accessory dwelling unit” has the same meaning as defined in subdivision (a) of Section 66313 of the Government Code.
(2) “Bundled sale” means the sale of two or more parcels of real property containing one to four single-family dwelling units, inclusive, under a single assessor’s parcel number, in a single transaction.
(3) “Institutional investor” means an investor with portfolios containing more than 1,000 single-family dwelling units that is not a natural person and is an entity including, but not limited to, a limited liability company, limited liability partnership, or real estate investment trust.
(4) “Junior accessory dwelling unit” has the same meaning as defined in subdivision (d) of Section 66313 of the Government Code.
(5) “Real estate investment trust” has the same meaning as defined in Section 856 of the Internal Revenue Code.
(6) “New single-family dwelling unit” means a single-family dwelling unit, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit, that has not been previously sold.
(b) Notwithstanding any other law, a homebuilder of a new single-family dwelling unit shall not conduct a bundled sale to an institutional investor if the certificate of occupancy for a single-family dwelling unit in the bundled sale was issued and the contract of sale for the bundled sale was entered into on or after January 1, 2025.
(c) This section shall not apply to a homebuilder if the homebuilder obtains an affidavit signed under penalty of perjury from the buyer that the buyer is not an institutional investor.
(d) This section shall not limit either of the following:
(1) A homebuilder’s ability to construct and own a rental single-family dwelling unit for its own portfolio or the homebuilder’s ability to transfer a rental single-family dwelling unit to a subsidiary or parent of the homebuilder, which may be an institutional investor.
(2) An institutional investor’s ability to construct and own a rental single-family dwelling unit for the institutional investor’s own portfolio if the institutional investor acquired a controlling interest in the land before the issuance of a development permit.
(e) This section shall not affect the title of a parcel of real property. An escrow agent, settlement agent, title company, or title insurer has no duty to ensure compliance with this section and shall have no liability for a violation of this section.
(f) (1) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this section. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:
(A) A civil penalty of one hundred thousand dollars ($100,000) for each parcel of real property sold in violation of this section.
(B) Reasonable attorney’s fees and costs.
(2) This subdivision is the exclusive means for enforcing this section.
SEC. 2.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.