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California Department of Real Estate updates FAQs for licensing processes
On April 15, the California Department of Real Estate updated its FAQs for licensing processes. The FAQs answer questions relating, among other things, to the closure of DRE offices, the cancellation and rescheduling of licensing exams, renewal of real estate license, and electronic signatures on licensing documents.
California insurance commissioner issues bulletin requiring premium refunds, credits, and reductions
On April 13, the California insurance commissioner issued Bulletin 2020-3 to property and casualty insurers regarding premium refunds, credits, and reductions in response to Covid-19. In light of the reductions in risk across certain lines of insurance as a result of reduced activity during Covid-19, insurers are required to make an initial premium refund for the months of March and April to all adversely impacted California policyholders for certain lines of insurance as soon as practicable but within 120 days from April 13. The bulletin contains additional guidance regarding how to refund the premiums, whether approval is required from the Department of Insurance for certain changes in premiums, and reporting requirements for actions taken.
California Department of Real Estate issues guidance regarding late submission of certain required reports
On April 13, the California Department of Real Estate (DRE) issued guidance providing that the DRE will review situations on a case-by-case basis with respect to deadlines for filing certain DRE required reports. Entities that are late in submitting their reports are requested to add a signed explanation as to the delay, if possible. The DRE will work with brokers who miss deadlines due to disruptions resulting from Covid-19.
California’s attorney general advises tenants of new rights
On April 7, the California attorney general issued updated guidance for California tenants that encourages them to take control of their rights under the state Judicial Council’s April 6 emergency eviction rule. The guidance alerts tenants that nothing in the emergency rule stops landlords from filing new eviction cases but it prevents them from proceeding for 90 days after the ongoing state of emergency is lifted. It also encourages tenants to research local eviction moratoriums that may provide additional protections.
California Department of Business Oversight issues advisory to small businesses with merchant cash advance contracts
On April 6, the California Department of Business Oversight (DBO) issued an advisory to small businesses with merchant cash advance contracts. Small businesses are encouraged to review the terms of their existing financing products to determine whether they may be entitled to relief and report finance companies that fail to honor contractual terms that provide relief. The DBO notes that payments under certain financing arrangements are typically adjustable and may be lowered if the small business is closed as a result of government orders.
California counties announce waiver of penalties and charges for late filing of property taxes for inability to pay caused by Covid-19
On April 4, the California State Association of Counties and the California Association of County Treasurers and Tax Collectors announced that California counties will use their existing authority to cancel penalties and other charges for homeowners, small businesses, and other property owners that are unable to pay their property taxes due to circumstances caused by Covid-19 on a case-by-case basis. The statement emphasizes that property owners who can pay or have not been directly affected by Covid-19 should still pay on time to keep critical government services running.
California Department of Business Oversight issues guidance to finance lenders, PACE administrators, deferred deposit originators, and premium finance companies
On April 3, the California Department of Business Oversight (DBO) issued guidance to finance lenders, Property Assessed Clean Energy (PACE) administrators, deferred deposit originators, and premium finance companies requesting such licensees work with their customers by offering payment plans and extensions at no additional cost to the customer. The DBO also requests that premium finance companies grant a grace period similar to the grace periods being granted by many insurance companies in order to prevent insureds from experiencing an interruption in insurance coverage.
California secretary of state issues FAQs on notarizations, business entity filings
The secretary of state issued FAQs summarizing the impact of Governor Newsome’s Shelter in Place order on notarizations and business filings. The FAQs clarify that the Secretary of State’s Office remains operational, although it is only accepting business entity filings and notary oath filings by mail or electronically. The FAQs also provide that while California law does not permit California notaries to perform remote online notarizations, California citizens may utilize remote online notarization services provided by an out-of-state notary, if those services are performed in accordance with local state law. California citizens may also utilize the services of a “mobile notary,” that will travel to a customer’s location and perform notarizations.
California chief justice extends statutory deadlines for hearings and trials
On March 30, the chief justice of California issued an order that extended statutory deadlines for preliminary hearings, arraignments and certain civil and criminal trials. The order, which was issued under authority granted to the chief justice in Executive Order N-38-20, extends the time from which a defendant charged with a felony must be taken before a magistrate judge from two to seven days, extends the time period for holding preliminary examinations of such defendants from 10 to 30 days, and extends certain statutory deadlines for holding criminal and civil trials by 60 days.
California governor issues executive order halting enforcement of evictions
On March 27, the California Governor issued an executive order halting the enforcement of eviction orders for renters affected by Covid-19 through May 31, 2020. The order prohibits landlords from evicting tenants for nonpayment of rent and prohibits enforcement of evictions. It also requires tenants to declare in writing, no more than seven days after the rent comes due, that the tenant cannot pay all or part of their rent due to Covid-19.