Legal Updates in Real Estate

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Navigating Fair Market Rent Calculations During California’s Price Gouging Protections

January 27, 2025
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Under California Penal Code Section 396, rental price increases during a declared state of emergency are limited to 10%, with the base rent determined by prior rental history or fair market rent (FMR) as defined by HUD. If a property hasn’t been rented in the past year, the allowable base rent defaults to 160% of the HUD fair market rent. The choice between county-wide FMRs and Small Area FMRs (SAFMRs) depends on local market conditions, with SAFMRs providing more granular, ZIP code-specific data.

judge hammer with "2025" in blocks - new laws for 2025

2025 Landlord-Tenant Law Updates: Key Changes and Compliance Tips For California Landlords

January 19, 2025
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New landlord-tenant laws for 2025 include critical updates on application screening fees, tenant credit reporting, security deposit requirements, and lock-change protections. Key provisions include mandatory refunds for unselected applicants, expanded photo documentation for move-in and move-out inspections, and tenant options for reporting positive rental payments to credit agencies. These changes have particular implications for landlords in Newport Beach and Costa Mesa. For expert advice and property management services tailored to help you navigate these updates, contact Lucas Real Estate.

Attention Landlords: New Photo Documentation and Security Deposit Regulations for California Landlords in 2025 (AB 2801)

January 13, 2025
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Navigating AB 2801: A New Era in Landlord Transparency

Starting April 1, 2025, AB 2801 introduces mandatory photo documentation for California landlords at key stages of tenancy, ensuring transparency in security deposit deductions. At Lucas Real Estate, we’ve long embraced this best practice, photographing properties before and after tenancies, as well as post-repair or cleaning. Whether you’re managing your own property or need expert guidance, our property management services in Newport Beach, Costa Mesa, and beyond help you stay compliant while protecting your investment.

2025 IRS Gift and Estate Tax Limits Reach Historic Highs: $13,990,000 Lifetime Exclusion and $19,000 Annual Gift Exclusion – Changes Loom in 2026

January 12, 2025
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2025 IRS Gift and Estate Tax Limits Reach Historic Highs

The IRS has raised the lifetime gift and estate tax exclusion to a record-breaking $13,990,000 per person for 2025, with the annual gift exclusion increasing to $19,000 per recipient. These high thresholds offer a unique opportunity for substantial tax-free gifting and estate planning, but they are set to revert to much lower levels in 2026 unless Congress acts. Learn how to maximize these benefits while they last, especially if you own high-value real estate in Newport Beach, Costa Mesa, or the surrounding areas.

2025 Capital Gains Tax Guide: Key Insights for Real Estate Sellers in Coastal Orange County

January 8, 2025
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Capital Gains Tax Rates for 2025: What Home Sellers Need to Know

Planning to sell your home in Newport Beach, Costa Mesa, or other high-value areas in 2025? Stay informed about the updated capital gains tax rates. For 2025, single filers can enjoy a 0% rate for gains up to $48,350, with higher rates applying to gains above this threshold. Married couples filing jointly benefit from a 0% rate up to $96,700. Learn how the IRS Section 121 Exclusion can save you $250,000 to $500,000 in taxable gains. Don’t overlook additional taxes like California’s income tax, which can push your total tax rate to 37.1%. Contact Lucas Real Estate for expert guidance on real estate sales and tax implications.

What Is Title Insurance and Why Is It Important?

January 6, 2025
devinlucas

Discover the importance of title insurance for your Newport Beach or Costa Mesa real estate transactions. Learn how it protects your property rights, prevents legal disputes, and ensures a smooth home-buying process. Trust Lucas Real Estate for expert guidance and peace of mind.

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When Are Sellers Exempt From Certain Disclosures in California Real Estate?

November 19, 2024
devinlucas

California law requires real estate sellers to disclose known material facts about their property, even when certain exemptions apply. While some sellers—like trustees, fiduciaries, or those involved in court-ordered sales—may be exempt from completing forms such as the Transfer Disclosure Statement (TDS), they are still obligated to disclose any defects that could impact the property’s value. Learn how exemptions work, when they apply, and why tools like the Exempt Seller Disclosure Form are essential for compliance. For trustees, explore our detailed guide to their specific disclosure requirements. Whether you’re selling in Newport Beach, Costa Mesa, or other coastal Orange County communities, Lucas Real Estate ensures your transaction is smooth, compliant, and stress-free.

New FinCEN Reporting Requirements: What Real Estate Owners Need to Know About Their LLCs

November 18, 2024
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New FinCEN Reporting Requirements: What Real Estate Owners Need to Know

A new federal law now requires LLCs, corporations, and similar entities—including those holding real estate—to report their beneficial ownership information to FinCEN. If your LLC was created before January 1, 2024, you must file by January 1, 2025, to avoid steep penalties.

This rule is critical for real estate owners, as LLCs are a common structure for property ownership in Newport Beach, Costa Mesa, and throughout California. Compliance requires detailed reporting, including personal information for all beneficial owners. Non-compliance could result in fines up to $5,000 per violation and even criminal penalties.

At Lucas Real Estate, we specialize in helping property owners navigate these complexities. Whether you’re filing for the first time or managing multiple LLCs, our legal and tax expertise ensures your investments stay protected and compliant.

Have questions? Contact us today for personalized guidance.

Renting Out Rooms in Your Home? You Could Still Qualify for the IRS Section 121 Deduction When You Sell

October 6, 2024
devinlucas

If you rent out rooms in your primary residence, you can still qualify for the IRS Section 121 deduction when you sell, allowing you to exclude up to $250,000 (or $500,000 for married couples) in capital gains. However, be aware of depreciation recapture rules and how renting affects your taxes. Learn more about how renting out rooms or separate units impacts your tax benefits.

Understanding Proposition 33: What It Means for Homeowners, Renters, and the Housing Market

September 27, 2024
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Understanding Proposition 33: What It Means for Newport Beach and Costa Mesa Property Owners

Proposition 33 aims to repeal the Costa-Hawkins Rental Housing Act, potentially imposing rent control on single-family homes and new apartment developments across California. This measure could drastically affect property owners in high-demand areas like Newport Beach, Costa Mesa, and other coastal Orange County communities by expanding rent control regulations. At Lucas Real Estate, we guide property owners through the evolving real estate landscape, ensuring your investments remain protected. Discover how Prop. 33 could impact your property and the housing market.

For personalized real estate advice, contact Lucas Real Estate today.

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