Recent regulations are reshaping U.S. property transactions, impacting compliance and market dynamics. These updates focus on improving people’s experiences in property transactions, enhancing protection, and ensuring fairness in the housing process. As these rules become effective, stakeholders in this industry must understand these changes to help them leverage the market benefits while adopting new practices.
1. Mandatory Inclusionary Housing
MIH is a transformative policy that aims to address the challenges in housing affordability. It requires real estate developers to allocate part of their residential housing projects to less costly units that consume no more than 30% of a household’s income. The initiative helps set a competitive housing market for low- and moderate-income earners, promoting greater socioeconomic diversity within communities.
For example, while there is no statewide mandate for this law in Florida, several cities, including Miami and Orlando, have implemented their own MIH ordinances. These local programs require developers to reserve a portion of new units for affordable housing, reflecting a commitment to expanding housing options and tackling affordability challenges at the municipal level.
For tenants looking for suitable affordable housing options and developers navigating MIH obligations, identifying a reputable Real Estate Agent in Orlando, FL, expert is crucial in fostering a more inclusive and accessible real estate market.
2. Real Estate Sales Contracts Disclosures on Property Condition
Various states have recently updated their property condition disclosure laws to address evolving real estate concerns and enhance buyer protection. These updates reflect a growing emphasis on trustworthiness and detail in property transactions. For instance, New York City has introduced specific questions about flood risks and environmental hazards, such as radon and mold, into their disclosure forms to provide buyers with more comprehensive information about potential risks.
In Florida, recent legislative changes have expanded disclosure requirements beyond those established by Johnson v. Davis, including mandatory disclosure of homeowner or condominium association membership, radon gas dangers, and coastal erosion issues. Additionally, homes built before 1978 must disclose the presence of lead-based paint and provide buyers with the right to inspect for it, as federal law mandates.
Real estate agents help home buyers and sellers understand these changes to reduce uncertainty in real estate transactions. That ensures buyers are well-informed about a property’s condition and potential issues. As these laws evolve, buyers and sellers must stay updated on their state-specific requirements to navigate the real estate process effectively.
3. New Minimum Home Energy Standards in the U.S.
The U.S. Department of Housing and Urban Development and the Department of Agriculture have introduced new energy efficiency requirements for new constructions, which could impact about 25% of new builds, including starter homes. Based on the 2021 IECC and ASHRAE Standard 90.1-2019, these changes promise a 33% reduction in energy use, saving homeowners an average of $524 annually, with a payback period of about 18 months.
Enhanced insulation and building practices also improve resilience during extreme weather events. The update will affect HUD-supported multifamily units and FHA and USDA-financed single-family homes, potentially influencing broader adoption if the Federal Housing Finance Agency (FHFA) aligns with these standards.
The policy aims to improve comfort, reduce costs, and promote sustainability in the housing market. Real estate agents can assist buyers and renters in finding homes that meet or exceed the new energy efficiency standards. They can highlight properties with Energy Star certification, modern insulation, and energy-efficient HVAC systems.
4. The Community Housing Act of 2024
The legal framework is a pivotal legislative measure that enhances homeownership funding programs. It proposes more funding for the Housing Trust and Capital Magnet Fund, which aims to increase and preserve the supply of rental housing and homeownership opportunities for low-income families and community-based projects.
It also repeals the Faircloth Amendment, lifting restrictions on new public housing units. Also, it establishes a Permanent Emergency Rental Assistance Program and a HUD Eviction Protection Grant Program to aid low-income renters. The act aims to enhance housing affordability, improve rural housing conditions, and provide comprehensive homeownership and rental assistance support.
5. New Commission-Sharing Agreement Rule in Real Estate
The new commission-sharing agreement rule, introduced by the National Association of Realtors (NAR), marks a pivotal shift in real estate transactions. Effective August 17th, 2024, the rule prohibits automatically sharing commissions between seller and buyer agents. Historically, sellers typically covered both agents’ fees, a practice that the new rule aims to address due to claims of inflating home sale costs.
Under this rule, buyers are now at the center of their agent’s fees rather than relying on the seller to cover these costs. The change aims to increase transparency and potentially lower overall transaction costs, but it may also lead to higher upfront expenses for buyers. The rule’s impact on commission rates remains open, but it represents a significant evolution in how real estate commissions are structured and negotiated.
In conclusion, the real estate market is becoming increasingly dynamic due to new legislation that affects affordability, access, and overall transactions in the housing sector. Staying updated with these changes is essential in leveraging the benefits while remaining compliant. However, partnering with a respected real estate agent is crucial for optimizing opportunities and simplifying the process, ensuring buyers and renters can navigate these evolving regulations effectively.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
