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must be paid o in full prior to sale or renancing of the property. When the assessment is paid o, any fees or pre- payment penalties must also be paid. This can leave a homeowner who had counted on the equity in his home seriously empty handed after years of diligent mortgage payments. Most times, a homeowner is not choosing to pay o the assessment early. They are forced to pay it o by the subsequent buyer or lender in order for the transaction to be completed. Residential PACE assessments are among the fastest growing types of property-secured nancing in California. As such, it is vital that the Legislature continues its work to strengthen consumer protection and establish a regulatory framework for the previously unregulated PACE industry. This law creates further safeguards for homeowners who choose to utilize California's residential PACE programs.
This law requires the PACE disclosure to be provided to the property owner as a printed copy in no smaller than 12-point type, unless the homeowner opts out of receiving a paper copy by signing a printed paper document.
A PACE contract cannot contain a penalty for early repayment.
Prohibits PACE assessments when a reverse mortgage is in place.
Assembly Bill 1551 is codied as Financial Code Section 22684 and Streets and Highways Code Sections 5898.17 and 5913.
Eective January 1, 2021. C.A.R. sponsored legislation
Consumer Protection: Right of Senior Citizens to Cancel Contracts Expanded
Extends, from three to 􏰀ve business days, the right to cancel certain consumer contracts for persons 65 years of age or older, including the right to cancel a PACE lien contract
The major provisions of this law include:
1) Denes a senior citizen as an individual who is 65 years of age or older.
2) Extends the buyer's right to cancel a home improvement contract to ve business days if the buyer is a senior citizen. Prescribes the form and content of a notice of this right to cancel.
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