New ADA Law Affects Commercial Leases

Effective July 1, 2013, a new lease disclosure requirement codified at California Civil Code Section 1938 affects owners and lessors of commercial property.  Section 1938, part of the legislation designed to limit unwarranted lawsuits brought under the Americans with Disabilities Act (ADA), provides as follows:  A commercial property owner or lessor shall state on every lease form or rental agreement executed on or after July 1, 2013 whether the property being leased or rented has undergone inspection by a Certified Access Specialist (CASp), and, if so, whether the property has or has not been determined to meet all applicable construction-related accessibility standards pursuant to Section 55.53.

Although this new requirement seems straight-forward enough on the surface, it has raised questions about how an owner and lessor should proceed with respect to satisfying the requirement, including the potential consequences of having or not having a CASp inspection performed.  While there are no definitive answers to these questions, and probably won't be until the new legislation has been tested in the courts, some issues have been clarified by the California Commission on Disability Access ("CCDA") in the wake of this new law. 

Is your property covered by this new law?  California Civil Code Section 1938 specifically addresses "commercial" properties, which under Civil Code Section 1995.020 is defined as all properties other than for residential purposes.  The  CCDA has confirmed the provision is not applicable to residential leases.

Is the law retroactive?  The law applies to all leases or rental agreements of commercial properties executed on or after July 1, 2013. 

What if my lease was signed before the July 1, 2013 deadline, but there is a post-July 1, 2013 amendment or modification?  The CCDA has advised a lease that is entered into before July 1, 2013 but is amended or renewed on or after July 1, 2013 falls within the provisions and requirements of Civil Code Section 1938; therefore, any lease amendment or renewal must state whether or not a CASp inspection has been performed.

 

Questions?  Concerns about what to do in response to this new law?  Comment, or send me an e-mail.  I’m here to help! 

Nothing in this blog is intended to create an attorney-client relationship.  This article is intended to provide a general overview of the current status of the law for informational purposes only, and is not intended to constitute, or serve as a substitute for, a professional legal consultation.  Laws change every day; please consult an attorney regarding the current status of the law, and how the law affects your specific circumstances. Thank you.