New Disclosure Requirements for California Commercial Landlords

Estate agent or car salesman completing a deal and handing over the keys to the new purchaser in his office

California Civil Code Section 1938 was passed in 2012 and set forth requirements for the inspection and certification of disability compliant commercial facilities. The legislation mandated that commercial lease forms contain a statement of inspection by a Certified Access Specialist (CASp) and a determination as to whether the commercial lessee adhered to accessibility protocols. The purpose of these requirements is to maintain conformity with relevant disability access laws in commercial facilities throughout the state.

The Legislature has recently passed Assembly Bill 2093 (AB 2093) to amend some aspects of the disability access legislation. AB 2093 sets forth more stringent requirements for commercial landlords to disclose information about the property for the purpose of encouraging greater compliance with disability laws. The standard for commercial properties is that all leases must state whether the premises have been subject to a CASp inspection. AB 2093 disclosure requirements apply to those premises that have not submitted to a CASp inspection. For those properties, the lease should contain a disclosure statement that states the following: (i) a CASp inspection is available to determine whether the property complies with construction related accessibility standards; (ii) state law does not mandate a CASp inspection, but the tenant cannot be prevented by the lessor from seeking a CASp inspection during his occupancy; and (iii) the parties to the lease should mutually consent to the time and method of a CASp inspection, the terms of payment for the service, and the manner in which repairs should be made if violations of accessibility standards are determined to exist.

Once inspection is complete, the legislation sets forth additional requirements depending on whether the lessor has complied with relevant standards for disability access. If the CASp inspection report finds no evidence of any violation, then the landlord is obligated to provide a copy of the inspection certificate to the tenant within seven days after the lease has been signed. If the CASp report notes that modifications are necessary, then the report must be submitted to the tenant prior to the signing of the lease agreement and the tenant must agree to maintain the confidentiality of the report. The tenant retains the right to cancel the lease if the report is not provided to him at least 2 days prior to executing the lease.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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New Disclosure Requirements for California Commercial Landlords

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