SECTIONS 1917.510-1917.511 - California Statutes

CIVIL CODE

SECTION 1917.510-1917.511

1917.510. The borrower may have the value of capital improvements
added to the fair market value of the borrower's property, for
purposes of determining the total loan obligation, but only if the
procedures set forth in this article are followed.
(a) Within 60 days following the completion of capital
improvements during any 12-month period with a cost in excess of one
thousand dollars ($1,000), the borrower shall send by first-class
mail a notice of the completion of the improvements to the lender and
shall submit proof of cost and an estimate of the increase in value
of the property by reason of the improvements.
(b) If, within 30 days of receipt of the notice, the lender
questions the claimed increase in value of the property by reason of
the improvements, the lender and the borrower may, by mutual
agreement, establish the value of the capital improvements or the
lender may require appraisal of the property. An appraisal shall be
made to determine the increase in value of the property, if any, by
reason of the improvements, by two appraisers selected in the same
manner specified in Section 1917.412. If appraisals are performed,
the increase in value resulting from the improvements for the
purposes of this section, shall be one-half of the sum of the two
appraisals. The cost of the appraiser selected by the borrower shall
be borne by the borrower, and the cost of the appraiser selected by
the lender shall be borne by the lender.
(c) A credit for the value of capital improvements shall be
provided if the increase in value of the property resulting therefrom
is determined pursuant to subdivision (b) to exceed one thousand
dollars ($1,000).
(d) If 50 percent or more of the value of the labor or other work
on the improvements was performed by the borrower, then the actual
cost of the improvements need not exceed one thousand dollars
($1,000) for purposes of making application under subdivision (a).

1917.511. Nothing in this article shall preclude a shared
appreciation loan for seniors from providing the borrower with a
greater credit for improvements than specified in this article,
provided the relevant disclosures required by Article 7 (commencing
with Section 1917.710) are appropriately modified to accurately
disclose the terms of the credit.