Dangerous real estate legislation defeated in the California Senate
Throughout our day-to-day lives many of us are busy with kids, work, sports and other daily routines that take up a big chunk of our time. Monday quickly turns to Friday. I know in my household our week seems to fly by with Friday showing up pretty quick. Many of us are not in the position to keep up with legislation that affects our day to day lives. We try to manage and be informed about issues that affect our immediate household. What about the issues that affect homeowners? Or rental property owners? There are associations that one can belong to that help answer property owners questions and be a guide to those with investments. Usually we seek information and answers when are dealing with current issues. An interesting piece of legislation that was up for consideration was Assembly Bill 2416. AB 2416 would have affected homeowners and investment property owners alike had it been passed.
AB 2416, which would have allowed employees with a wage dispute to place unsupported, pre-judgment liens against an employer’s property and other properties where they worked, failed passage in the state Senate. Property liens are claims, filed by a creditor and attached to a property’s official title record. If a lien is placed on a property, the property can’t be sold or purchased unless the lien is removed. Typically, there has to be some official finding, like a judgment, that the creditor is entitled to be repaid before the lien can be attached. In the case of AB 2416, employees would have had the ability to record a lien, without a judgment or official determination that the property owner actually owed the employee any money. Even worse, creditors or “representatives” of the claimant would be able to record these liens.