California Real Estate Law Disclosure Chart *1
Copyright©2003 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Permission is granted to C.A.R. members only to reprint and use this
material for non-commercial purposes provided credit is given to the
C.A.R. Legal Department. Other reproduction or use is strictly
prohibited without the express written permission of the C.A.R. Legal
Department. All rights reserved. |
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SUBJECT
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DISCLOSURE TRIGGER
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DISCLOSURE
REQUIREMENT
(Brief Summary)
FORM
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C.A.R. INFORMATION SOURCE
LAW
CITATION
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Agent’s
Real Property Inspection
1
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Sale
*2of all residential real property of 1-4 units (No exemptions
except for never-occupied properties where a public report is required
or properties exempted from a public report pursuant to Business &
Professions Code § 11010.4)
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
A real
estate licensee must conduct a reasonably competent and diligent visual
inspection of the property; this inspection duty does not include areas
which are reasonably and normally inaccessible, off the site, or public
records or permits concerning the title or use of the property; this
inspection duty includes only the unit for sale and not the common areas
of a condo or other common interest development.
There
is no requirement that the inspection report be in writing; however, it
is recommended that all licensees put it in writing.
C.A.R.
Form TDS (or for mobilehomes and manufactured housing, C.A.R. Form MHTDS)
may be used. If the seller is exempt from the TDS, then C.A.R. Form AID
may be used by the agent. |
Cal. Civ. Code
§§ 2079 – 2079.6
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Commercial or Industrial Zone Location
2
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Transfer
*3or exchange of residential real property of 1-4 units.
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The seller of real property subject to the TDS law must disclose "actual
knowledge" that the property is affected by or zoned to allow an
industrial use of property (manufacturing, commercial, or airport use)
as soon as possible before transfer of title.
C.A.R. Form TDS may be used. |
Cal. Civ. Code § 1102.17; Cal. Code Civ. Proc. § 731a
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Death and/or AIDS
3
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Sale, lease, or rental of all real property. |
The transferor/agent has no liability for not disclosing the fact of any
death which occurred more than 3 years prior to the date the transferee
offers to buy, lease, or rent the property. Any death which has occurred
within a 3-year period should be disclosed if deemed to be "material."
Affliction with AIDS or death from AIDS, no matter when it occurred,
need not be voluntarily disclosed. However, neither a seller nor
seller’s agent may make an intentional misrepresentation in response to
a direct question concerning deaths on the property.
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"Disclosure of Aids
and Death: The Legislative Solution"
Cal. Civ. Code
§ 1710.2.
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"Drug Lab" – Illegal Controlled Substances Contamination
4
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Transfer *4 or exchange of residential real property of 1-4 units and
lease of any residential dwelling unit.
Same
exemptions as for the Transfer Disclosure Statement.
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In the event that toxic contamination by an illegal controlled substance has
occurred on a property and upon receipt of a notice from the Dept. of
Toxic Substances Control (DTSC) or other agency—or if the seller has
actual knowledge of the toxic contamination—the seller must disclose
this information to the buyer by checking item II.C.1 of the TDS form
and attaching the DTSC notice, if there is one.
In the case of rental property, the landlord must give a prospective tenant
written notice of the toxic contamination. Providing the tenant with a
copy of the DTSC notice will suffice if there is such a notice.
C.A.R. Form TDS may be used.
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Cal. Civ. Code
§§ 1102.18, 1940.7.5 |
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Earthquake Fault Zones *5
5
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Sale of all real property which does contain or will eventually contain a
structure for human occupany and which is located in an earthquake fault
zone (special studies zone) as indicated on maps created by the
California Division of Mines and Geology. *6
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
The
seller’s agent or the seller without an agent must disclose to
the buyer the fact that the property is in an earthquake fault zone
(special studies zone), if maps are available at the county assessor’s,
county recorder’s, or county planning commission office, or if the
seller or seller’s agent has actual knowledge that the property is in
the zone. If the map is not of sufficient accuracy or scale to determine
whether the property is in the zone, then either the agent indicates
"yes" that the property is in the zone or the agent may write "no" that
the property is not in this zone, but then a report prepared by
an expert verifying that fact must be attached toC.A.R. Form NHD.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement," or an updated local option disclosure form
must be used to make this disclosure. |
"Natural Hazard Disclosure Statement"
Cal. Pub. Res. Code §§ 2621 et seq.;
Cal. Civ. Code § 1103
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Earthquake Hazards – Homeowner’s Guide
6
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Mandatory delivery:
Transfer of residential real property of 1-4 units, manufactured homes,
and mobilehomes, of conventional light frame construction, and built
prior to January 1, 1960, if not exempt (almost same exemptions as for
the Transfer Disclosure Statement *7). Additional exemption
if the buyer agrees, in writing, to demolish the property within one
year from date of transfer.
Voluntary delivery:
Transfer *8of any real property.
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Mandatory delivery:
The
licensee must give the transferor the booklet "The Homeowner’s Guide to
Earthquake Safety" *9and the transferor must give this
booklet to the transferee.
Known
structural deficiencies must be disclosed by the transferor to the
transferee and the form in the booklet entitled "Residential Earthquake
Hazards Report" may be used to make this disclosure.
Voluntary delivery:
If the
Guide is delivered to the transferee, then the transferor or broker is
not required to provide additional information concerning general
earthquake hazards.
Known
earthquake hazards must be disclosed whether delivery is mandatory or
voluntary. |
Cal. Bus. & Prof. Code
§ 10149;
Cal. Gov’t Code
§§ 8897.1, 8897.2, 8897.5.
Cal. Civ. Code
§ 2079.8. |
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Earthquake Hazards – Commercial Guide
7
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Mandatory delivery:
Sale, transfer, or exchange of any real property or manufactured
home or mobilehome if built of precast concrete or
reinforced/unreinforced masonry with wood frame floors or roofs and
built before January 1, 1975, located within a county or city, if not
exempt.
Same
exemptions as for Homeowner’s Guide.
Voluntary delivery:
Transfer of *10 any real property.
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Mandatory delivery:
The transferor/transferor’s agent must give the transferee a copy of
"The Commercial Property Owner’s Guide to Earthquake Safety." *11
Voluntary delivery:
If the Guide is delivered to the transferee, then the transferor or
broker is not required to provide additional information concerning
general earthquake hazards.
Known
earthquake hazards must be disclosed whether delivery is mandatory or
voluntary. |
Cal. Bus. & Prof. Code § 10147, Cal. Gov’t Code §§ 8875.6, 8875.9,
8893.2, 8893.3,
Cal. Civ. Code § 2079.9. |
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Flood
Hazard Areas (federal law)
8
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Sale or
lease of all improved real estate or mobilehomes located in flood
hazard areas as indicated on maps published by the Federal Emergency
Management Agency. *12 |
The
seller/lessor should disclose to buyer/lessee the fact that the property
is located in such an area. *13
C.A.R. Form TDS may be used (or for mobilehomes and manufactured
housing, C.A.R. Form MHTDS).
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42 U.S.C. §§ 4001 et seq., § 4104a. |
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"Special
Flood Hazard Area" (state law)
9
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Sale of
real property located in Zone "A" or " V" as designated by FEMA and if
the seller or the seller’s agent has actual knowledge or a list
has been compiled by parcel and the notice posted at a local
county recorder, assessor and planning agency.
Also applies to Manufactured Homes (as defined in H&S § 18007, which
includes personal property Mobilehomes)
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The
seller’s agent or the seller without an agent must disclose to
the buyer if the property is in this Special Flood Hazard Area, if a
parcel list has been prepared by the county and a notice identifying the
location of the list is available at the county assessor’s, county
recorder’s or county planning commission office, or if the seller or
seller’s agent has actual knowledge that the property is in an area.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement" or an updated Local Option disclosure form
must be used to make this disclosure. |
"Natural Hazard
Disclosure Statement"
Cal. Civ. Code
§ 1103,
Cal. Gov’t Code § 8589.3
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"Area of
Potential Flooding" (in the event of dam or reservoir failure) (state
law)
10
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Sale of
all real property if the seller or the seller’s agent has actual
knowledge or a list has been compiled by parcel and the
notice posted at a local county recorder, assessor and planning agency.
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
The
seller’s agent or the seller without an agent must disclose to
the buyer if the property is in this Area of Potential Flooding
as designated on an inundation map, if a parcel list has been prepared
by the county and a notice identifying the location of the list is
available at the county assessor’s, county recorder’s or county planning
commission office, or if the seller or seller’s agent has actual
knowledge that the property is in an area.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement" or an updated Local Option disclosure form
must be used to make this disclosure. |
"Natural Hazard
Disclosure Statement"
Cal. Gov’t Code
§§ 8589.4, 8589.5;
Cal. Civ. Code § 1103
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Flood
Disaster Insurance (federal law)
(Applicable for any flood disaster *14 declared after
September 23, 1994)
11
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Any
transfer *15of personal (e.g., mobilehomes), residential, or
commercial property where the owner received federal flood disaster
assistance conditioned on the owner subsequently obtaining and
maintaining flood insurance.
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The
transferor must notify the transferee in writing on a document
"evidencing the transfer of ownership of the property" about the
requirement to obtain and maintain flood insurance in accordance with
applicable Federal law. [Currently, there are no regulations detailing
this requirement.]
Failure to notify the transferee means that in the event the transferee
fails to maintain the required flood insurance and the property is
damaged by a flood disaster requiring Federal disaster relief, the
transferor will be required to reimburse the Federal government.
The
law is unclear as to what document(s) should contain this notice. C.A.R.
Forms RPA-CA and NHD may be acceptable, but technically are not
documents which "evidence the transfer of ownership." Clearly, a grant
deed is such a document.
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"Federal Flood
Insurance Disclosure"
42 U.S.C.
§ 5154a.
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Home
Energy Ratings
12
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Transfer
*16or exchange of all real property.
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
If a home
energy ratings booklet to be developed by the State of California is
delivered to the transferee, then a seller or broker is not required to
provide additional information concerning the existence of a statewide
home energy rating program.
NEITHER THIS PROGRAM NOR THE BOOKLET IS AVAILABLE AT THIS TIME.
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Cal. Civ. Code
§ 2079.10;
Cal. Pub. Res. Code
§§ 25402.9, 25942.
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Home
Environmental Hazards
13
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Transfer
*17 or exchange of all real property.
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
If a
consumer information booklet *18is delivered to the
transferee, then a seller or broker is not required to provide
additional information concerning common environmental hazards.
Although highly recommended, delivery is voluntary.
However, known hazards on the property must be disclosed to the
transferee.
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Cal. Civ. Code § 2079.7. |
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Home
Inspection Notice(FHA/HUD)
14
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Sale of
residential real property of 1-4 units, including mobilehomes on a
permanent foundation, which involve FHA loans or HUD-owned properties.
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For all
properties regardless of when they were built, the borrower must sign
the notice entitled, "The Importance of a Home Inspection."
C.A.R.
Form HID may be used for this purpose. |
"FHA Inspection
Disclosure Form "
HUD Mortgagee Letter 96-10. |
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Lead
Hazard Pamphlet
15
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Sale or
lease of all residential property, built before 1978,
except as indicated below.
Mobilehomes are also subject to this law.
Exemptions:
-
foreclosure or
trustee’s sale transfer (REO properties and deed in lieu of
foreclosure are NOT exempt!)
-
zero-bedroom
dwelling (loft, efficiency unit, dorm, or studio)
-
short-term rental
(100 or fewer days)
-
housing for elderly
or handicapped (unless children live there)
-
rental housing
certified free of lead paint
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The
seller/lessor must provide the buyer/lessee with a lead hazard
information pamphlet, disclose the presence of any known lead-based
paint and provide a statement signed by the buyer that the buyer has
read the warning statement, has received the pamphlet, and has a 10-day
opportunity to inspect before becoming obligated under the contract.
The
purchaser (not lessee) is permitted a 10-day period to conduct an
inspection unless the parties mutually agree upon a different time
period.
The
agent, on behalf of the seller/lessor, must ensure compliance with the
requirements of this law.
C.A.R.
pamphlet, "Protect Your Family From Lead in Your Home," and C.A.R. form
FLD satisfy these requirements (except for sales of HUD properties—HUD
forms required).
The
C.A.R. revised home environmental hazards booklet may be used in lieu of
the pamphlet mentioned above. |
"Federal Lead-Based
Paint and Lead-Based Paint Hazards Disclosures"
"Federal
Pre-Renovation Lead Information Rule"
Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C.S.
§ 4852d.
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Megan’s
Law Disclosure
16
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Sale
*19or lease/rental of all residential real property of 1-4 units
(No exemptions except for never-occupied properties where a public
report is required or properties exempted from a public report pursuant
to Business & Professions Code
§ 11010.4) |
Every
lease or rental agreement and every sales contract is required to
include a statutorily-defined notice regarding the existence of public
access to database information regarding sex offenders.
The
following C.A.R. forms contain this statutory notice: LR, LR-S, RIPA,
RPA-CA
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Cal. Civ. Code
§ 2079.10a
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Mello-Roos District or Any Other Bond Assessment
17
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Transfer
*20 or exchange of residential real property of 1-4 units
subject to a continuing lien securing the levy of special taxes pursuant
to the Mello-Roos Community Facilities Act.
Same
exemptions as for the Transfer Disclosure Statement except that new
subdivisions are not exempt. |
The
transferor must make a good faith effort to obtain a disclosure notice
concerning the special tax or assessment from each local agency that
levies a special tax or assessment and deliver the
notice(s) to the prospective transferee.
Transferors may comply with this law by using a third-party disclosure
company.
Transferors may comply with the bond assessment disclosure requirement
by using a recent tax bill or an itmeization from a title report.
The
transferee has a 3 or 5-day right of rescission.
There is no affirmative duty by an agent to discover a special tax or
district or assessment not actually known to the agent.
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"Mello-Roos District
Disclosure Requirements"
Cal. Civ. Code § 1102.6b; Cal. Gov't Code
§§ 53340.2, 53341.5, 53754.
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Military
Ordnance Location
18
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Transfer
*21or exchange of residential real property of 1-4 units and
lease of any residential dwelling unit.
Same
exemptions as for the Transfer Disclosure Statement.
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Disclosure is required when the transferor/lessor has actual knowledge
that a former military ordnance location (military training grounds
which may contain explosives) is within one mile of the property.
The
transferor/lessor must disclose in writing to the transferee/lessee,
that these former federal or state military ordnance locations may
contain potentially explosive munitions.
The
transferee has a 3 or 5-day right of rescission.
C.A.R.
Form TDS may be used. |
Cal. Civ. Code
§§ 1102.15, 1940.7. |
Mold
(Toxic)
(no new disclosure duties upon transfer until after the DHS establishes
guidelines)
19
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Sale,
lease, rental, or other transfer of any commercial, industrial or
residential property |
There are
no current disclosure requirements until after the Dept.
of Health Services (DHS) develops permissible exposure limits for molds
and a consumer booklet.
The
TDS has been modified to include the word "mold" in paragraph II.C.1.
As
always, any transferor must disclose actual knowledge of toxic
mold on the property. |
"Mold and Its Impact
on Real Estate Transactions"
Cal. Health & Safety Code §§ 26100 et seq., §§ 26140, 26141, 26147,
26148
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Seismic
Hazard Zones
20
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Sale of
all real property which does contain or will eventually contain a
structure for human habitation and which is located in a seismic hazard
zone as indicated on maps created by the California Division of Mines
and Geology.
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
The
seller's agent or the seller without an agent must disclose to
the buyer the fact that the property is in a seismic hazard zone if maps
are available at the county assessor's, county recorder's, or county
planning commission office, or if the seller or seller’s agent has
actual knowledge that the property is in the zone. If the map is not of
sufficient accuracy or scale to determine whether the property is in the
zone, then either the agent indicates "yes" that the property is in the
zone or the agent may write "no" that the property is not in this
zone, but then a report prepared by an expert verifying that fact must
be attached toC.A.R. Form NHD.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement" or an updated local option disclosure form
must be used to make this disclosure. |
"Seismic Hazard Zone
Maps Update"
"Natural Hazard
Disclosure Statement"
Cal. Pub. Res. Code
§ 2690 et seq.,
§ 2694; Cal. Civ. Code § 1103
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Smoke
Detector Compliance
21
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All
existing dwelling units must have a smoke detector centrally located
outside each sleeping area (bedroom or group of bedrooms). In addition,
new construction (with a permit after August 14, 1992) must have a
hard-wired smoke detector in each bedroom. Any additions, modifications,
or repairs (after August 14, 1992) exceeding $1,000 for which a permit
is required will also trigger the requirement of a smoke detector in
each bedroom. (These may be battery operated.) |
The
seller of a single family home must provide the buyer with a
written statement indicating that the property is in compliance with
current California law.
Same
exemptions from compliance and disclosure as for the Transfer Disclosure
Statement but only for single family homes and factory-built housing,
not other types of dwellings. Transfers to or from any governmental
entity, and transfers by a beneficiary or mortgagee after foreclosure
sale or trustee's sale or transfers by deed in lieu of foreclosure,
which are exempt under the TDS law, are not exempt from this law.
LOCAL
LAW MAY BE MORE RESTRICTIVE! Check with the local City or County
Department of Building and Safety.
C.A.R.
Form SDS may be used. |
Cal. Health & Safety Code
§§ 13113.7, 13113.8, 18029.6.
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State
Responsibility Areas
(Fire
Hazard Areas)
22
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Sale of
any real property located in a designated state responsibility
area (generally a "wildland area") where the state not local or federal
govt. has the primary financial responsibility for fire prevention. The
California Department of Forestry provides maps to the county assessor
of each affected county. *22
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
The
seller must disclose to the buyer the fact that the property is located
in this zone, the risk of fire, state-imposed additional duties such as
maintaining fire breaks, and the fact that the state may not provide
fire protection services. The disclosure must be made if maps are
available at the county assessor’s, county recorder’s or county planning
commission office, or if the seller has actual knowledge that the
property is in the zone. If the map is not of sufficient accuracy or
scale to determine whether the property is in this Area, then either the
agent indicates "yes" that the property is in this Area or the agent may
write "no" that the property is not in this Area, but then a
report prepared by an expert verifying that fact must be attached
toC.A.R. Form NHD.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement" or an updated local option disclosure form
must be used to make this disclosure. |
"Natural Hazard
Disclosure Statement"
Cal. Pub. Res. Code
§§ 4125, 4136; Cal. Civ. Code § 1103
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"Very
High Fire Hazard Severity Zone"
23
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Sale of
any real property.
Also
applies to Manufactured Homes (as defined in H&S § 18007, which includes
personal property Mobilehomes) |
The
seller must disclose the fact that the property is located within this
zone and whether it is subject to the requirements of Gov’t Code Section
51182 (e.g., clear brush, maintain fire breaks). The disclosure must be
made if maps are available at the county assessor’s, county recorder’s
or county planning commission office, or if the seller has actual
knowledge that the property is in the zone. If the map is not of
sufficient accuracy or scale to determine whether the property is in
this zone, then either the agent indicates "yes" that the property is in
this zone or the agent may write "no" that the property is not in
this zone, but then a report prepared by an expert verifying that fact
must be attached toC.A.R. Form NHD.
If a
TDS is required in the transaction, either C.A.R. Form NHD, "Natural
Hazard Disclosure Statement" or an updated local option disclosure form
must be used to make this disclosure. |
"Natural Hazard
Disclosure Statement"
Cal. Gov’t Code
§§ 51178, 51183.5;
Cal. Civ. Code § 1103
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Subdivided Lands Law
24
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Sale,
leasing, or financing of new developments (condos, PUDs) or conversions
consisting of 5 or more lots, parcels, or interests. However, a transfer
of a single property to 5 or more unrelated people (unless exempt) may
also trigger this law. There are exemptions too numerous to discuss in
this chart. |
The
owner, subdivider, or agent, prior to the execution of the purchase
contract or lease, must give the buyer/lessee a copy of the final public
report (FPR), preliminary public report (PPR), or the conditional public
report (CPR) issued by the DRE.
No
offers may be solicited until the DRE has issued one of these three
reports. If the DRE has issued a CPR or PPR, then offers may be
solicited, but close of escrow is contingent upon issuance of the FPR.
Contracts entered into pursuant to a PPR may be rescinded by either
party; contracts entered into pursuant to a CPR are contingent upon
satisfaction of certain specified conditions. |
"Subdivided Lands
Law"
Cal. Bus. & Prof. Code
§ 11018.1.
Cal.
Bus. & Prof. Code
§ 11018.12; Cal. Code Regs., tit. 10, § 2795.
See
generally,
Cal. Bus. & Prof. Code
§§ 11000 et seq.; Cal. Code Regs., tit. 10,
§§ 2790 et seq. |
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Subdivision Map Act
25
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Any
division of real property into 2 or more lots or parcels for the purpose
of sale, lease, or financing. There are exemptions too numerous to
discuss in this chart.
|
The
owner/subdivider must record either a tentative and final map, or a
parcel map (depending on the type of subdivision). Escrow on the
transfer cannot close until the appropriate map has been recorded.
|
Cal. Gov't Code §§ 66426, 66428.
See generally,
Cal. Gov't Code §§ 66410 et seq. |
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Water
Heater Bracing
26
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All
properties with water heaters.
Legislative intent suggests this law applies only to residential
properties, but the language of the statute does not limit the
requirement to residential properties. |
All
owners of new or replacement water heaters and all owners of existing
residential water heaters must brace, anchor or strap water heaters to
resist falling or horizontal displacement due to earthquake motion.
The
seller of real property must certify in writing to a prospective
purchaser that he has complied with this section and applicable local
code requirements.
This
certification may be done in existing transactional documents, including
but not limited to, the Homeowner’s Guide to Earthquake Safety, a real
estate purchase contract, a transfer disclosure statement, or a local
option disclosure of compliance.
C.A.R.
Form WHS may be used. |
"Water Heater
Bracing and Disclosure Requirements"
Cal. Health & Safety Code § 19211.
|
