| Disclosures
Required of a Seller and/or a Real Estate Agent
The following disclosures pertain mainly to the resale
of residential property. The seller and agent must make
all required disclosures to avoid fraud, misrepresentation
or deceit in a transaction.
A. Disclosures Upon Transfer of Residential
Property
There are six disclosures required by statutes in an
article in the California Civil Code. These requirements
apply when real property containing one-to-four dwelling
units is transferred by sale, exchange, installment
land sale contract, ground lease coupled with improvements,
lease with an option to purchase, or any other option
to purchase.
“Seller" means the transferor and "Buyer"
the transferee in the transaction.
These requirements also pertain to the resale of a manufactured
home or a mobile home when either is classified as personal
property and is intended for use as a residence.
Transfers exempt from these transfer disclosure
requirements are:
• foreclosure sale;
• court ordered transfer;
• transfer by a fiduciary in the administration
of a probate estate or a testamentary trust;
• transfer to a spouse or to a person or persons
in the lineal line of
• consanguinity;
• transfer resulting from a judgment of dissolution
of marriage or of legal separation or from a property
settlement agreement incidental to such a judgment;
• transfer from one co-owner to another;
• transfer by the State Controller for unclaimed
property;
• transfer resulting from failure to pay taxes;
• transfer to or from any governmental entity;
and
• sale of a residential property within a subdivision
where a public report must be delivered to the purchaser
or a public report is not required.
If delivery of any of these disclosures, or an amended
disclosure, occurs after execution of an offer, the
buyer has three days after delivery of the disclosure
in person or five days after delivery by deposit in
the United States mail to terminate the offer by delivering
a written notice of termination to the seller or the
seller’s agent. This is referred to as the Termination
right under the disclosure law.
1. Real Estate Transfer Disclosure Statement
The Real Estate Transfer Disclosure Statement (TDS)
details the condition of a property. It must be given
to a prospective buyer as soon as practicable before
transfer of title (or execution of a lease option, real
property sales contract, or ground lease coupled with
improvements).
2. Local Option Real Estate Transfer Disclosure
Statement
A city or county may require that the seller provide
specific information about the neighborhood or community.
3. Natural Hazards Disclosure
The seller or the seller’s agent must make appropriate
disclosures if the property is in one or more of the
following zones or areas:
Zone A or Zone V (special flood hazard area)
as designated by the Federal Emergency Management Agency.
The seller’s agent, or the seller if acting without
an agent, must make this disclosure if:
• the seller or the seller’s agent has actual
knowledge that the property is in a special flood hazard
area; or
• the local jurisdiction has compiled a list of
parcels that are in a special flood hazard area and
has posted at the offices of the county recorder, county
assessor, and county planning agency a notice regarding
location of the list.
(Government Code Section 8589.3)
An area of potential flooding shown on a map
as an area which will be inundated if a dam fails. The
seller’s agent, or the seller if acting without
an agent, must make this disclosure if:
• the seller, or the seller’s agent, has
actual knowledge that the property is within a delineated
inundation area; or
• the local jurisdiction has compiled a list of
parcels that are in the inundation area and has posted
at the offices of the county recorder, county assessor,
and county planning agency a notice regarding location
of the list.
(Government Code Section 8589.4)
A designated very high fire hazard severity
zone. The seller must make this disclosure if:
• the seller, or the seller’s agent, has
actual knowledge that the property is in a designated
very high fire hazard severity zone; or
• the local agency has received a map of such
properties which includes the seller’s property
and has posted at the offices of the county recorder,
county assessor, and county planning agency a notice
regarding location of the map and any changes to it.*
(Government Code Section 51183.5)
A designated wildland area ("state responsibility
area") that may contain substantial forest fire
risks and hazards. The seller must make this disclosure
if:
• the seller, or the seller’s agent, has
actual knowledge that the property is in a designated
wildland fire zone; or
• the city or county has received a map of such
properties which includes the seller’s property
and has posted at the offices of the county recorder,
county assessor, and county planning agency a notice
regarding location of the map and any changes to it.*
(Public Resources Code Section 4136)
An earthquake fault zone. These zones are over
earthquake faults and are usually about one quarter
mile in width. The seller’s agent, or the seller
if acting without an agent, must disclose that the property
is in one of these zones if:
• the seller, or the seller’s agent, has
actual knowledge that the property is within a delineated
earthquake fault zone; or
• the city or county has received a map of such
properties which includes the seller’s property
and has posted at the offices of the county recorder,
county assessor, and county planning agency a notice
regarding location of the map and any changes to it.*
(Public Resources Code Section 2621.9)
A seismic hazard zone. In an earthquake, properties
in one of these zones may be subject to strong ground
shaking, soil liquefaction, or landslide. The seller’s
agent, or the seller if acting without an agent, must
disclose that the property is in one of these zones
if:
• the seller, or the seller’s agent, has
actual knowledge that the property is within a delineated
seismic hazard zone; or
• the city or county has received a map of such
properties which includes the seller’s property
and has posted at the offices of the county recorder,
county assessor, and county planning agency a notice
regarding location of the map and any changes to it.*
(Public Resources Code Section 2694)
*If, when looking at the map, a reasonable person cannot
tell with certainty whether or not the property is in
the zone, the seller or seller’s agent must mark
"YES" on the disclosure form, unless there
can be attached to the form an expert’s report,
prepared pursuant to Civil Code Section 1102.4(c), indicating
that the property is not located in the zone.
These disclosures must be made on the Natural Hazard
Disclosure Statement (NHDS) or on the Local Option Real
Estate Transfer Disclosure Statement (LORETDS), provided
the local jurisdiction has mandated use of a LORETDS
for some disclosure purpose and the information and
warnings are substantially the same as on the NHDS.
4. Mello-Roos Bonds and Taxes
The Mello-Roos Community Facilities Act of 1982 authorizes
the formation of community facilities districts, the
issuance of bonds, and the levying of special taxes
to finance designated public facilities and services.
The seller of a property consisting of one-to-four dwelling
units subject to the lien of a Mello-Roos community
facilities district must make a good faith effort to
obtain from the district a disclosure notice concerning
the special tax and give the notice to a prospective
buyer. (Civil Code Section 1102.6b)
5. Ordinance Location
Federal and state agencies have identified certain areas
once used for military training and which may contain
live ammunition. A seller of residential property, one-to-four
dwelling units, located within one mile of such a potential
hazard must give the buyer written notice as soon as
practicable before transfer of title. This obligation
depends upon the seller having actual knowledge of the
hazard.
(Civil Code Section 1102.15)
6. Window Security Bars
A seller must disclose on the TDS or, if mandated, the
Local Option TDS, the existence of window security bars
and any safety release mechanism on the bars. (Civil Code
Section 1102.16)
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